-- Tenant Sales Trends Improving -- Operating Statistics on Track with Prior Guidance -- Earnings Impacted by Impairment Charges -- Adjusted FFO Guidance at Top of Previously Announced Range BLOOMFIELD HILLS, Mich., Oct. 26 /PRNewswire-FirstCall/ -- Taubman Centers, Inc. (NYSE:TCO) today announced its financial results for the third quarter of 2009. (Logo: http://www.newscom.com/cgi-bin/prnh/20080428/CLM116LOGO ) Net income (loss) allocable to common shareholders per diluted share (EPS) was $(1.77) for the quarter ended September 30, 2009, versus $0.17 for the quarter ended September 30, 2008. The 2009 results include the $2.00 per share impact of the previously announced impairment charges relating to The Pier Shops at Caesars (Atlantic City, N.J.) and Regency Square (Richmond, Va.). EPS for the nine months ended September 30, 2009 was $(1.39), versus $0.26 for the first nine months of 2008. Adjusted Funds from Operations per diluted share (which excludes the 2009 impairment charges) was $0.74 for the quarters ended September 30, 2009 and 2008 respectively. Funds from Operations (FFO) was $(1.26) per diluted share for the quarter ended September 30, 2009. Adjusted FFO (which excludes the 2009 impairment charges and the restructuring charge taken in the first half of the year) for the nine months ended September 30, 2009 was $2.13, an increase of 2.4 percent from $2.08 for the nine months ended September 30, 2008. There were no adjustments during the first three quarters of 2008. FFO per share was $0.11 for the nine months ended September 30, 2009. "We're continuing to experience a tough retail environment," said Robert S. Taubman, chairman, president and chief executive officer of Taubman Centers. "As retailers rationalize locations, we have been very successful collecting lease cancellation income. This more than offset the declines in rents and recoveries during the quarter." Operating Statistics in Line with Prior Guidance Ending occupancy for Taubman's portfolio was 88.5 percent on September 30, 2009 versus 90.5 percent on September 30, 2008. Leased space was 91.0 percent on September 30, 2009 versus 92.4 percent on September 30, 2008. Average rent per square foot in the company's 16 consolidated properties for the third quarter of 2009 was $42.36 versus $44.04 for the third quarter of 2008. For the nine months ended September 30, 2009, average rent per square foot in the consolidated properties was $43.47 versus $44.04 in the nine months ended September 30, 2008. Mall tenant sales per square foot declined 8.0 percent from the third quarter of 2008. For the twelve months ended September 30, 2009, mall tenant sales per square foot was down 11.8 percent to $497 per square foot. "The sales performance trend is the best we've reported since the third quarter of 2008," said Mr. Taubman. "In fact, the month of September, while down 2.9 percent, was significantly better than we have been reporting all year. We are hopeful that the improved sales trends mark the bottom of this cycle. As sales improve, our retailers will become more profitable. Eventually, this will be reflected in stronger leasing and operating results." Guidance The company previously announced adjusted FFO guidance in the range of $2.73 to $2.93 per diluted share, excluding the restructuring charge incurred in the first half of the year. Excluding the impact of the impairment and restructuring charges, the company is narrowing the range for adjusted FFO per share guidance to $2.88 to $2.93, the top of the previously announced range. FFO per diluted share is expected to be $0.87 to $0.92. The company is also narrowing its guidance for 2009 EPS to $(1.13) to $(1.03). Supplemental Investor Information Available The company provides supplemental investor information along with its earnings announcements, available online at http://www.taubman.com/ under "Investor Relations." This includes the following: -- Income Statements -- Earnings Reconciliations -- Changes in Funds from Operations and Earnings (Loss) Per Share -- Components of Other Income, Other Operating Expense, and Gains on Land Sales and Other Nonoperating Income -- Recoveries Ratio Analysis -- Balance Sheets -- Debt Summary -- Other Debt, Equity and Certain Balance Sheet Information -- Construction -- Capital Spending -- Operational Statistics -- Owned Centers -- Major Tenants in Owned Portfolio -- Anchors in Owned Portfolio Investor Conference Call The company will host a conference call at 1:00 PM. (EDT) on October 27 to discuss these results, business conditions and the company's outlook for the remainder of 2009. The conference call will be simulcast at http://www.taubman.com/ under "Investor Relations" as well as http://www.earnings.com/ and http://www.streetevents.com/. An online replay will follow shortly after the call and continue for approximately 90 days. Taubman Centers is a real estate investment trust engaged in the development and management of regional and super regional shopping centers. Taubman's 24 U.S. owned and/or managed properties, the most productive in the industry, serve major markets from coast to coast. Taubman Centers is headquartered in Bloomfield Hills, Michigan and its Taubman Asia subsidiary is headquartered in Hong Kong. For more information about Taubman, visit http://www.taubman.com/. For ease of use, references in this press release to "Taubman Centers", "company" or "Taubman" mean Taubman Centers, Inc. or one or more of a number of separate, affiliated entities. Business is actually conducted by an affiliated entity rather than Taubman Centers, Inc. itself. This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements reflect management's current views with respect to future events and financial performance. Actual results may differ materially from those expected because of various risks and uncertainties, including, but not limited to the continuing impacts of the U.S. recession and global credit environment, other changes in general economic and real estate conditions, changes in the interest rate environment and the availability of financing, and adverse changes in the retail industry. Other risks and uncertainties are discussed in the company's filings with the Securities and Exchange Commission including its most recent Annual Report on Form 10-K. TAUBMAN CENTERS, INC. Table 1 - Summary of Results For the Periods Ended September 30, 2009 and 2008 ------------------------------------------------- (in thousands of dollars, except as indicated) Three Months Ended Year to Date ------------------ ------------ 2009 2008 (2) 2009 2008 (2) ---- -------- ---- -------- Net income (loss) (1),(2) (138,788) 27,836 (93,396) 72,766 Noncontrolling share of (income) loss of consolidated joint ventures (2) 3,456 (1,416) (270) (3,722) Distributions in excess of noncontrolling share of income of consolidated joint ventures (2) (1,578) (7,973) Noncontrolling share of (income) loss of TRG (2) 45,894 (7,445) 34,018 (17,866) Distributions in excess of noncontrolling share of income of TRG (2) (3,565) (15,183) TRG series F preferred distributions (615) (615) (1,845) (1,845) Preferred stock dividends (3,658) (3,658) (10,975) (10,975) Distributions to participating securities of TRG (362) (362) (1,198) (1,085) Net income (loss) attributable to Taubman Centers, Inc. common shareowners (2) (94,073) 9,197 (73,666) 14,117 Net income (loss) per common share - basic (2) (1.77) 0.17 (1.39) 0.27 Net income (loss) per common share - diluted (2) (1.77) 0.17 (1.39) 0.26 Beneficial interest in EBITDA -Consolidated Businesses (1), (3) (79,985) 78,973 72,791 231,550 Beneficial interest in EBITDA -Unconsolidated Joint Ventures (3) 24,413 25,636 70,897 71,394 Funds from Operations (1), (3) (100,323) 59,712 8,637 167,681 Funds from Operations attributable to TCO (1), (3) (67,019) 39,764 5,707 111,588 Funds from Operations per common share - basic (1), (3) (1.26) 0.75 0.11 2.11 Funds from Operations per common share - diluted (1), (3) (1.26) 0.74 0.11 2.08 Adjusted Funds from Operations (1), (3) 60,479 59,712 172,069 167,681 Adjusted Funds from Operations attributable to TCO (1), (3) 40,402 39,764 114,884 111,588 Adjusted Funds from Operations per common share - basic (1), (3) 0.76 0.75 2.16 2.11 Adjusted Funds from Operations per common share - diluted (1), (3) 0.74 0.74 2.13 2.08 Weighted average number of common shares outstanding -basic 53,147,866 52,908,924 53,112,145 52,815,246 Weighted average number of common shares outstanding -diluted 53,147,866 53,412,236 53,112,145 53,370,218 Common shares outstanding at end of period 53,171,237 52,948,733 Weighted average units - Operating Partnership - basic 79,558,921 79,450,825 79,541,688 79,365,719 Weighted average units - Operating Partnership - diluted 81,254,902 80,825,398 80,936,239 80,791,952 Units outstanding at end of period - Operating Partnership 79,558,922 79,481,177 Ownership percentage of the Operating Partnership at end of period 66.8% 66.6% Number of owned shopping centers at end of period 23 23 23 23 Operating Statistics: Mall tenant sales (4) 1,020,834 1,112,502 2,957,114 3,312,137 Ending occupancy 88.5% 90.5% 88.5% 90.5% Average occupancy 88.4% 90.4% 88.6% 90.1% Leased space at end of period 91.0% 92.4% 91.0% 92.4% Mall tenant occupancy costs as a percentage of tenant sales - Consolidated Businesses (4) 15.8% 15.6% 16.9% 15.6% Mall tenant occupancy costs as a percentage of tenant sales - Unconsolidated Joint Ventures (4) 15.6% 14.7% 15.8% 14.1% Rent per square foot - Consolidated Businesses 42.36 44.04 43.47 44.04 Rent per square foot - Unconsolidated Joint Ventures 44.56 44.52 44.59 44.72 (1) The three and nine month periods ended September 30, 2009 include impairment charges related to the write down of the book values of The Pier Shops and Regency Square to their fair values. The nine month period ended September 30, 2009 also includes a restructuring charge, which primarily represents the costs of termination of personnel. No similar charges were incurred in the three and nine month periods ended September 30, 2008. (2) On January 1, 2009, the Company adopted Accounting Standards Codification (ASC) Topic 810, "Consolidation" as it relates to noncontrolling interests. Consequently, noncontrolling interests in consolidated subsidiaries with equity balances of less than zero are now allocated income equal to their ownership interests in the subsidiaries. Under previous accounting, because the net equity balances of the Operating Partnership and the outside partners in certain consolidated joint ventures were less than zero, the income attributed to the noncontrolling partners was equal to their share of distributions. The net equity of these noncontrolling partners is less than zero due to accumulated distributions in excess of net income and not as a result of operating losses. Net loss attributable to Taubman Centers, Inc. common shareowners for the three and nine months ended September 30, 2009 would have been $(153.0) million and $(146.9) million, respectively or $(2.88) and $(2.77) per common share, respectively if accounted for under the previous method of accounting for noncontrolling interests prior to the new accounting requirements. Certain 2008 amounts have been reclassified to conform with 2009 classifications. (3) Beneficial Interest in EBITDA represents the Operating Partnership's share of the earnings before interest, income taxes, and depreciation and amortization of its consolidated and unconsolidated businesses. The Company believes Beneficial Interest in EBITDA provides a useful indicator of operating performance, as it is customary in the real estate and shopping center business to evaluate the performance of properties on a basis unaffected by capital structure. The National Association of Real Estate Investment Trusts (NAREIT) defines Funds from Operations (FFO) as net income (computed in accordance with Generally Accepted Accounting Principles (GAAP)), excluding gains from extraordinary items and sales of properties, plus real estate related depreciation and after adjustments for unconsolidated partnerships and joint ventures. The Company believes that FFO is a useful supplemental measure of operating performance for REITs. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, the Company and most industry investors and analysts have considered presentations of operating results that exclude historical cost depreciation to be useful in evaluating the operating performance of REITs. FFO is primarily used by the Company in measuring performance and in formulating corporate goals and compensation. These non-GAAP measures as presented by the Company are not necessarily comparable to similarly titled measures used by other REITs due to the fact that not all REITs use common definitions. None of these non-GAAP measures should be considered alternatives to net income as an indicator of the Company's operating performance, and they do not represent cash flows from operating, investing, or financing activities as defined by GAAP. (4) Based on reports of sales furnished by mall tenants. TAUBMAN CENTERS, INC. Table 2 - Income Statement For the Three Months Ended September 30, 2009 and 2008 -------------------------------------------------------- (in thousands of dollars) 2009 2008 --------------------------- --------------------------- UNCONSOLIDATED UNCONSOLIDATED CONSOLIDATED JOINT CONSOLIDATED JOINT BUSINESSES VENTURES (1) BUSINESSES VENTURES (1) ------------ -------------- ------------ -------------- REVENUES: Minimum rents 83,403 39,074 87,401 39,187 Percentage rents 2,621 974 3,262 1,681 Expense recoveries 56,720 24,415 60,838 25,011 Management, leasing, and development services 3,444 3,316 Other 17,012 2,823 8,896 1,175 ------ ----- ----- ----- Total revenues 163,200 67,286 163,713 67,054 EXPENSES: Maintenance, taxes, and utilities 46,286 16,802 48,741 17,201 Other operating 16,506 5,515 18,482 3,892 Management, leasing, and development services 2,140 1,843 General and administrative 7,155 6,790 Impairment charges (2) 166,680 Interest expense 36,407 16,219 36,039 16,471 Depreciation and amortization 37,726 9,491 35,464 9,923 ------ ----- ------ ----- Total expenses 312,900 48,027 147,359 47,487 Gains on land sales and other nonoperating income 247 31 411 115 --- --- --- --- (149,453) 19,290 16,765 19,682 ====== ====== Income tax (expense) benefit 211 (218) Equity in income of Unconsolidated Joint Ventures 10,454 11,289 ------ ------ Net income (loss) (138,788) 27,836 Net (income) loss attributable to noncontrolling interests: Noncontrolling share of (income) loss of consolidated joint ventures 3,456 (1,416) Distributions in excess of noncontrolling share of income of consolidated joint ventures (1,578) TRG series F preferred distributions (615) (615) Noncontrolling share of (income) loss of TRG 45,894 (7,445) Distributions in excess of noncontrolling share of income of TRG (3,565) Distributions to participating securities of TRG (362) (362) Preferred stock dividends (3,658) (3,658) ------ ------ Net income (loss) attributable to Taubman Centers, Inc. common shareowners (94,073) 9,197 ======= ===== SUPPLEMENTAL INFORMATION: EBITDA - 100% (2) (75,320) 45,000 88,268 46,076 EBITDA - outside partners' share (4,665) (20,587) (9,295) (20,440) ------ ------- ------ ------- Beneficial interest in EBITDA (2) (79,985) 24,413 78,973 25,636 Beneficial interest expense (31,420) (8,416) (31,088) (8,570) Beneficial income tax (expense) benefit 211 (218) Non-real estate depreciation (853) (748) Preferred dividends and distributions (4,273) (4,273) ------ ------ ------ ------ Fund from Operations contribution (2) (116,320) 15,997 42,646 17,066 ======== ====== ====== ====== Net straightline adjustments to rental revenue, recoveries, and ground rent expense at TRG % 334 158 251 162 === === === === (1) With the exception of the Supplemental Information, amounts include 100% of the Unconsolidated Joint Ventures. Amounts are net of intercompany transactions. The Unconsolidated Joint Ventures are presented at 100% in order to allow for measurement of their performance as a whole, without regard to the Company's ownership interest. The Company accounts for its investments in the Unconsolidated Joint Ventures under the equity method. (2) In the third quarter of 2009, the Company wrote down the book values of The Pier Shops and Regency Square to their fair values. The impairment charges were $160.8 million at TRG's share. TAUBMAN CENTERS, INC. Table 3 - Income Statement For the Nine Months Ended September 30, 2009 and 2008 ------------------------------------------------------- (in thousands of dollars) 2009 2008 --------------------------- --------------------------- UNCONSOLIDATED UNCONSOLIDATED CONSOLIDATED JOINT CONSOLIDATED JOINT BUSINESSES VENTURES (1) BUSINESSES VENTURES (1) ------------ -------------- ------------ -------------- REVENUES: Minimum rents 254,855 116,594 261,554 116,395 Percentage rents 5,342 2,177 7,162 3,600 Expense recoveries 172,003 72,060 178,686 69,089 Management, leasing, and development services 10,189 10,901 Other 37,440 6,199 23,239 5,541 ------ ----- ------ ----- Total revenues 479,829 197,030 481,542 194,625 EXPENSES: Maintenance, taxes, and utilities 137,773 49,135 138,766 48,629 Other operating 47,823 17,868 56,478 16,026 Restructuring charge (2) 2,630 Management, leasing, and development services 5,976 6,521 General and administrative 20,890 23,066 Impairment charges (3) 166,680 Interest expense 109,113 48,289 108,993 48,624 Depreciation and amortization 110,077 28,839 106,978 29,385 ------- ------ ------- ------ Total expenses 600,962 144,131 440,802 142,664 Gains on land sales and other nonoperating income 680 88 3,670 594 Impairment loss on marketable securities (1,666) ------ ------ ------ ------ (122,119) 52,987 44,410 52,555 ====== ====== Income tax expense (257) (658) Equity in income of Unconsolidated Joint Ventures 28,980 29,014 ------ ------ Net income (loss) (93,396) 72,766 Net (income) loss attributable to noncontrolling interests: Noncontrolling share of income of consolidated joint ventures (270) (3,722) Distributions in excess of noncontrolling share of income of consolidated joint ventures (7,973) TRG series F preferred distributions (1,845) (1,845) Noncontrolling share of (income) loss of TRG 34,018 (17,866) Distributions in excess of noncontrolling share of income of TRG (15,183) Distributions to participating securities of TRG (1,198) (1,085) Preferred stock dividends (10,975) (10,975) ------- ------- Net income (loss) attributable to Taubman Centers, Inc. common shareowners (73,666) 14,117 ======= ====== SUPPLEMENTAL INFORMATION: EBITDA - 100% (2) (3) 97,071 130,115 260,381 130,564 EBITDA - outside partners' share (24,280) (59,218) (28,831) (59,170) ------- ------- ------- ------- Beneficial interest in EBITDA (2) (3) 72,791 70,897 231,550 71,394 Beneficial interest expense (94,318) (25,069) (94,307) (25,289) Beneficial income tax expense (257) (658) Non-real estate depreciation (2,587) (2,189) Preferred dividends and distributions (12,820) (12,820) ------- ------ ------- ------ Funds from Operations contribution (2) (3) (37,191) 45,828 121,576 46,105 ======= ====== ======= ====== Net straightline adjustments to rental revenue, recoveries, and ground rent expense at TRG % 493 316 1,319 275 === === ===== === (1) With the exception of the Supplemental Information, amounts include 100% of the Unconsolidated Joint Ventures. Amounts are net of intercompany transactions. The Unconsolidated Joint Ventures are presented at 100% in order to allow for measurement of their performance as a whole, without regard to the Company's ownership interest. In its consolidated financial statements, the Company accounts for its investments in the Unconsolidated Joint Ventures under the equity method. (2) In 2009, the Company recognized a restructuring charge, which primarily represents the costs of termination of personnel. (3) In the third quarter of 2009, the Company wrote down the book values of The Pier Shops and Regency Square to their fair values. The impairment charges were $160.8 million at TRG's share. TAUBMAN CENTERS, INC. Table 4 - Reconciliation of Net Income (Loss) Attributable to Taubman Centers, Inc. Common Shareowners to Funds from Operations and Adjusted Funds from Operations For the Periods Ended September 30, 2009 and 2008 ------------------------------------------------- (in thousands of dollars; amounts attributable to TCO may not recalculate due to rounding) Three Months Ended Year to Date ------------ ------------ 2009 2008 2009 2008 ---- ---- ---- ---- Net income (loss) attributable to TCO common shareowners (94,073) 9,197 (73,666) 14,117 Add (less) depreciation and amortization: Consolidated businesses at 100% 37,726 35,464 110,077 106,978 Noncontrolling partners in consolidated joint ventures (3,134) (2,928) (9,215) (10,423) Share of Unconsolidated Joint Ventures 5,543 5,777 16,848 17,091 Non-real estate depreciation (853) (748) (2,587) (2,189) Add noncontrolling interests: Noncontrolling share of income (loss) of TRG (45,894) 7,445 (34,018) 17,866 Distributions in excess of noncontrolling share of income of TRG 3,565 15,183 Distributions in excess of noncontrolling share of income of consolidated joint ventures 1,578 7,973 Add distributions to participating securities of TRG 362 362 1,198 1,085 --- --- ----- ----- Funds from Operations (1) (100,323) 59,712 8,637 167,681 TCO's average ownership percentage of TRG 66.8% 66.6% 66.8% 66.5% ---- ---- ---- ---- Funds from Operations attributable to TCO (1) (67,019) 39,764 5,707 111,588 ======= ====== ===== ======= Funds from Operations (100,323) 59,712 8,637 167,681 TRG's share of impairment charges (1) 160,802 160,802 Restructuring charge (1) 2,630 ------- ------ ------- ------- Adjusted Funds from Operations (1) 60,479 59,712 172,069 167,681 TCO's average ownership percentage of TRG 66.8% 66.6% 66.8% 66.5% ---- ---- ---- ---- Adjusted Funds from Operations attributable to TCO (1) 40,402 39,764 114,884 111,588 ====== ====== ======= ======= (1) FFO for the three and nine month periods ended September 30, 2009 includes, and Adjusted FFO excludes, impairment charges related to the write down of The Pier Shops and Regency Square to their fair values. Also, FFO for the nine month period ended September 30, 2009 includes, and Adjusted FFO excludes, a restructuring charge, which primarily represents the costs of termination of personnel. The Company discloses this Adjusted FFO due to the significance and infrequent nature of these charges. Given the significance of the charges, the Company believes it is essential to a reader's understanding of the Company's results of operations to emphasize the impact on the Company's earnings measures. The adjusted measures are not and should not be considered alternatives to net income or cash flows from operating, investing, or financing activities as defined by GAAP. TAUBMAN CENTERS, INC. Table 5 - Reconciliation of Net Income (Loss) to Beneficial Interest in EBITDA For the Periods Ended September 30, 2009 and 2008 ------------------------------------------------- (in thousands of dollars; amounts attributable to TCO may not recalculate due to rounding) Three Months Ended Year to Date ------------------ ------------ 2009 2008 2009 2008 ---- ---- ---- ---- Net income (loss) (138,788) 27,836 (93,396) 72,766 Add (less) depreciation and amortization: Consolidated businesses at 100% 37,726 35,464 110,077 106,978 Noncontrolling partners in consolidated joint ventures (3,134) (2,928) (9,215) (10,423) Share of Unconsolidated Joint Ventures 5,543 5,777 16,848 17,091 Add (less) interest expense and income tax expense: Interest expense: Consolidated businesses at 100% 36,407 36,039 109,113 108,993 Noncontrolling partners in consolidated joint ventures (4,987) (4,951) (14,795) (14,686) Share of Unconsolidated Joint Ventures 8,416 8,570 25,069 25,289 Income tax expense (benefit) (211) 218 257 658 Less noncontrolling share of (income) loss of consolidated joint ventures 3,456 (1,416) (270) (3,722) ----- ------ ---- ------ Beneficial Interest in EBITDA (55,572) 104,609 143,688 302,944 TCO's average ownership percentage of TRG 66.8% 66.6% 66.8% 66.5% ---- ---- ---- ---- Beneficial Interest in EBITDA attributable to TCO (37,124) 69,670 95,880 201,607 ======= ====== ====== ======= TAUBMAN CENTERS, INC. Table 6 - Balance Sheets As of September 30, 2009 and December 31, 2008 ---------------------------------------------- (in thousands of dollars) As of -------- September 30, 2009 December 31, 2008 ------------------ ----------------- Consolidated Balance Sheet of Taubman Centers, Inc.: Assets: Properties 3,553,470 3,699,480 Accumulated depreciation and amortization (1,138,941) (1,049,626) ---------- ---------- 2,414,529 2,649,854 Investment in Unconsolidated Joint Ventures 87,791 89,933 Cash and cash equivalents 18,886 62,126 Accounts and notes receivable, net 28,188 46,732 Accounts receivable from related parties 1,940 1,850 Deferred charges and other assets 55,867 124,487 ------ ------- 2,607,201 2,974,982 ========= ========= Liabilities: Notes payable 2,686,239 2,796,821 Accounts payable and accrued liabilities 230,247 262,226 Dividends payable 22,002 Distributions in excess of investments in and net income of Unconsolidated Joint Ventures 157,282 154,141 ------- ------- 3,073,768 3,235,190 Equity: Taubman Centers, Inc. Shareowners' Equity: Series B Non- Participating Convertible Preferred Stock 26 26 Series G Cumulative Redeemable Preferred Stock Series H Cumulative Redeemable Preferred Stock Common Stock 532 530 Additional paid-in capital 562,789 556,145 Accumulated other comprehensive income (loss) (25,829) (29,778) Dividends in excess of net income (866,194) (726,097) -------- -------- (328,676) (199,174) Noncontrolling interests: Noncontrolling interests in consolidated joint ventures (98,728) (90,251) Noncontrolling interests in TRG (68,380) Preferred Equity of TRG 29,217 29,217 ------ ------ (137,891) (61,034) -------- ------- (466,567) (260,208) -------- -------- 2,607,201 2,974,982 ========= ========= Combined Balance Sheet of Unconsolidated Joint Ventures: Assets: Properties 1,091,847 1,087,341 Accumulated depreciation and amortization (388,561) (366,168) -------- -------- 703,286 721,173 Cash and cash equivalents 19,319 28,946 Accounts and notes receivable 20,334 26,603 Deferred charges and other assets 18,426 20,098 ------ ------ 761,365 796,820 ======= ======= Liabilities: Notes payable 1,095,655 1,103,903 Accounts payable and other liabilities, net 43,773 61,570 ------ ------ 1,139,428 1,165,473 Accumulated Deficiency in Assets: Accumulated deficiency in assets - TRG (199,167) (194,178) Accumulated deficiency in assets - Joint Venture Partners (167,539) (160,862) Accumulated other comprehensive income (loss) - TRG (6,057) (7,288) Accumulated other comprehensive income (loss) - Joint Venture Partners (5,300) (6,325) ------ ------ (378,063) (368,653) -------- -------- 761,365 796,820 ======= ======= TAUBMAN CENTERS, INC. Table 7 - Annual Outlook ------------------------- (all dollar amounts per common share on a diluted basis; amounts may not add due to rounding) Range for Year Ended December 31, 2009 Before Range for Impairment and Year Ended Restructuring Impairment Restructuring December Charges Charges (1) Charge (2) 31, 2009 --------------- ---------- ------------- ----------- Funds from Operations per common share (3) 2.88 2.93 (1.98) (0.03) 0.87 0.92 Real estate depreciation - TRG (1.83) (1.78) (1.83) (1.78) Distributions on participating securities of TRG (0.02) (0.02) (0.02) (0.02) Depreciation of TCO's additional basis in TRG (0.13) (0.13) (0.13) (0.13) ----- ----- ---- ---- ----- ----- Net income (loss) attributable to common shareowners, per common share (3) 0.91 1.01 (2.02) (0.03) (1.13) (1.03) ==== ==== ===== ===== ===== ===== (1) In the third quarter of 2009, the Company recognized impairment charges totaling $166.7 million on The Pier Shops and Regency Square to reduce their book values to their fair values. TRG's share of these impairment charges was $160.8 million. (2) In 2009, the Company recognized a restructuring charge of $2.6 million, which represents primarily the cost of terminations of personnel. (3) Per share amounts for Funds from Operations are calculated using estimated average diluted shares, which include the impact of common stock equivalents. Per share amounts for net loss attributable to common shareholders are calculated using estimated average outstanding shares, which exclude the impact of common stock equivalents because the impact is anti-dilutive to net loss per share. http://www.newscom.com/cgi-bin/prnh/20080428/CLM116LOGODATASOURCE: Taubman Centers, Inc. CONTACT: Barbara Baker, Taubman, Vice President, Investor Relations, +1-248-258-7367, Web Site: http://www.taubman.com/

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