UNITED
STATES
|
SECURITIES
AND EXCHANGE COMMISSION
|
WASHINGTON,
D.C. 20549
|
Form
10-Q
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d)
|
OF
THE
SECURITIES EXCHANGE ACT OF 1934
|
For
the
Quarterly Period Ended: March 31, 2007
|
Commission
File No. 1-11530
|
Taubman
Centers, Inc.
|
||||
(Exact
name
of registrant as specified in its charter)
|
||||
Michigan
|
38-2033632
|
|||
(State
or
other jurisdiction of incorporation
or organization)
|
(I.R.S.
Employer Identification No.)
|
|||
200
East Long
Lake Road, Suite 300, P.O. Box 200, Bloomfield Hills,
Michigan
|
48303-0200
|
|||
(Address
of
principal executive offices)
|
(Zip
Code)
|
|||
(248)
258-6800
|
||||
(Registrant's
telephone number, including area
code)
|
Indicate
by
check mark whether the registrant (1) has filed all reports required
to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during
the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
|
x Yes o
No
|
Indicate
by a
check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer. See definition of
"accelerated filer and large accelerated filer" in Rule 12b-2 of
the
Exchange Act. (Check one):
|
Large
Accelerated Filer x
Accelerated
Filer o
Non-Accelerated Filer o
|
Indicate
by a
check mark whether the registrant is a shell company (as defined
in Rule
12b-2 of the Exchange Act).
|
oYes
x
No
|
As
of April
26, 2007, there were outstanding 53,602,559 shares of the Company's
common stock, par value $0.01 per
share.
|
PART
I - FINANCIAL INFORMATION
|
||
Item
1.
|
Financial
Statements (Unaudited)
|
|
2
|
||
3
|
||
4
|
||
5
|
||
Item
2.
|
15
|
|
Item
3.
|
28
|
|
Item
4.
|
28
|
|
PART
II - OTHER INFORMATION
|
||
Item
1.
|
29
|
|
Item
1A.
|
29
|
|
Item
6.
|
29
|
|
30
|
March
31
|
December
31
|
||||||
2007
|
2006
|
||||||
Assets:
|
|||||||
Properties
|
$
|
3,427,996
|
$
|
3,398,122
|
|||
Accumulated depreciation and amortization
|
(844,080
|
)
|
(821,384
|
)
|
|||
$
|
2,583,916
|
$
|
2,576,738
|
||||
Investment in Unconsolidated Joint Ventures (Note 4)
|
87,254
|
86,493
|
|||||
Cash
and cash equivalents (Note 5)
|
25,517
|
26,282
|
|||||
Accounts and notes receivable, less provision for bad debts of $8,992
and
$7,581 in
2007 and 2006
|
38,052
|
36,650
|
|||||
Accounts and notes receivable from related parties
|
2,275
|
2,444
|
|||||
Deferred charges and other assets
|
96,831
|
98,015
|
|||||
$
|
2,833,845
|
$
|
2,826,622
|
||||
Liabilities:
|
|||||||
Notes
payable (Note 5)
|
$
|
2,365,374
|
$
|
2,319,538
|
|||
Accounts payable and accrued liabilities
|
213,511
|
247,432
|
|||||
Dividends and distributions payable
|
20,101
|
19,849
|
|||||
Distributions in excess of investments in and net income of Unconsolidated
Joint Ventures (Note 4)
|
104,792
|
101,944
|
|||||
$
|
2,703,778
|
$
|
2,688,763
|
||||
Commitments
and contingencies (Notes 3, 5, 7, and 8)
|
|||||||
Preferred
Equity of TRG
|
$
|
29,217
|
$
|
29,217
|
|||
Partners'
Equity of TRG allocable to minority partners (Note 1)
|
|||||||
Shareowners'
Equity:
|
|||||||
Series
B Non-Participating Convertible Preferred Stock, $0.001 par and
liquidation
value, 40,000,000 shares authorized,
27,444,088 and 28,113,897
shares issued and outstanding at March 31, 2007 and December
31,
2006
|
$
|
27
|
$
|
28
|
|||
Series
G Cumulative Redeemable Preferred Stock, 4,000,000 shares authorized,
no par, $100 million liquidation preference,
4,000,000 shares issued and
outstanding at March 31, 2007 and December 31, 2006
|
|||||||
Series
H Cumulative Redeemable Preferred Stock, 3,480,000 shares authorized,
no par, $87 million liquidation preference,
3,480,000 shares issued and
outstanding at March 31, 2007 and December 31, 2006
|
|||||||
Common
Stock, $0.01 par value, 250,000,000 shares authorized, 53,602,344
and
52,931,594 shares issued and outstanding at
March 31, 2007 and December
31,
2006
|
536
|
529
|
|||||
Additional paid-in capital
|
637,086
|
635,304
|
|||||
Accumulated other comprehensive income (loss)
|
(9,220
|
)
|
(9,560
|
)
|
|||
Dividends in excess of net income (Note 1)
|
(527,579
|
)
|
(517,659
|
)
|
|||
$
|
100,850
|
$
|
108,642
|
||||
$
|
2,833,845
|
$
|
2,826,622
|
Three
Months
Ended March 31
|
|||||||
2007
|
|
|
2006
|
||||
Revenues:
|
|||||||
Minimum rents
|
$
|
78,655
|
$
|
75,995
|
|||
Percentage rents
|
2,308
|
2,890
|
|||||
Expense recoveries
|
50,623
|
44,893
|
|||||
Management, leasing, and development services
|
4,890
|
2,923
|
|||||
Other
|
8,550
|
11,320
|
|||||
$
|
145,026
|
$
|
138,021
|
||||
Expenses:
|
|||||||
Maintenance, taxes, and utilities
|
$
|
37,919
|
$
|
34,798
|
|||
Other
operating
|
16,796
|
16,595
|
|||||
Management, leasing, and development services
|
2,790
|
1,518
|
|||||
General and administrative
|
7,321
|
6,924
|
|||||
Interest expense (Note 5)
|
29,694
|
34,283
|
|||||
Depreciation and amortization
|
32,533
|
33,389
|
|||||
$
|
127,053
|
$
|
127,507
|
||||
Gains
on land
sales and interest income
|
$
|
391
|
$
|
2,423
|
|||
Income
before
equity in income of Unconsolidated Joint Ventures and minority
and
preferred
interests
|
$
|
18,364
|
$
|
12,937
|
|||
Equity
in
income of Unconsolidated Joint Ventures (Note 4)
|
8,186
|
8,471
|
|||||
Income
before
minority and preferred interests
|
$
|
26,550
|
$
|
21,408
|
|||
Minority
interest in consolidated joint ventures (Note 1):
|
|||||||
Minority share of income of consolidated joint ventures
|
(1,913
|
)
|
(1,705
|
)
|
|||
Distributions in excess of minority share of income of consolidated
joint
ventures
|
608
|
1,244
|
|||||
Minority
interest in TRG:
|
|||||||
Minority share of income of TRG
|
(7,741
|
)
|
(5,717
|
)
|
|||
Distributions in excess of minority share of income of TRG (Note
1)
|
(2,833
|
)
|
(3,181
|
)
|
|||
TRG
Series F
preferred distributions
|
(615
|
)
|
(615
|
)
|
|||
Net
income
|
$
|
14,056
|
$
|
11,434
|
|||
Series
A, G,
and H preferred stock dividends (Note 6)
|
(3,658
|
)
|
(6,003
|
)
|
|||
Net
income
allocable to common shareowners
|
$
|
10,398
|
$
|
5,431
|
|||
Net
income
|
$
|
14,056
|
$
|
11,434
|
|||
Other
comprehensive income:
|
|||||||
Unrealized gain on interest rate instruments and other
|
25
|
914
|
|||||
Reclassification adjustment for amounts recognized in net
income
|
315
|
461
|
|||||
Comprehensive
income
|
$
|
14,396
|
$
|
12,809
|
|||
Basic
and
diluted earnings per common share (Note 9) -
|
|||||||
Net
income
|
$
|
0.19
|
$
|
0.10
|
|||
Cash
dividends declared per common share
|
$
|
0.375
|
$
|
0.305
|
|||
Weighted
average number of common shares outstanding
|
53,423,628
|
52,128,022
|
|
Three
Months
Ended March 31
|
||||||
2007
|
2006
|
||||||
Cash
Flows
From Operating Activities:
|
|||||||
Net
income
|
$
|
14,056
|
$
|
11,434
|
|||
Adjustments to reconcile net income to net cash provided by operating
activities:
|
|||||||
Minority and preferred interests
|
12,494
|
9,974
|
|||||
Depreciation and amortization
|
32,533
|
33,389
|
|||||
Provision for bad debts
|
2,069
|
1,620
|
|||||
Gains on sales of land
|
(759
|
)
|
|||||
Other
|
2,144
|
1,751
|
|||||
Increase (decrease) in cash attributable to changes in assets and
liabilities:
|
|||||||
Receivables, deferred charges, and other assets
|
(1,854
|
)
|
920
|
||||
Accounts payable and other liabilities
|
(26,201
|
)
|
(23,751
|
)
|
|||
Net
Cash
Provided by Operating Activities
|
$
|
35,241
|
$
|
34,578
|
|||
Cash
Flows
From Investing Activities:
|
|||||||
Additions to properties
|
$
|
(44,770
|
)
|
$
|
(50,828
|
)
|
|
Net
proceeds from disposition of interest in center (Note 4)
|
9,000
|
||||||
Acquisition of marketable equity securities
|
(2,290
|
)
|
|||||
Proceeds from sales of land
|
1,907
|
||||||
Contributions to Unconsolidated Joint Ventures
|
(611
|
)
|
(1,074
|
)
|
|||
Distributions from Unconsolidated Joint Ventures in excess of
income
|
2,726
|
2,784
|
|||||
Net
Cash Used
In Investing Activities
|
$
|
(44,945
|
)
|
$
|
(38,211
|
)
|
|
Cash
Flows
From Financing Activities:
|
|||||||
Debt
proceeds
|
$
|
50,092
|
$
|
215,500
|
|||
Debt
payments
|
(5,152
|
)
|
(205,241
|
)
|
|||
Debt
issuance costs
|
(454
|
)
|
|||||
Distributions to minority and preferred interests
|
(12,494
|
)
|
(9,513
|
)
|
|||
Cash
dividends to preferred shareowners
|
(3,658
|
)
|
(6,003
|
)
|
|||
Cash
dividends to common shareowners
|
(19,849
|
)
|
(15,816
|
)
|
|||
Net
Cash
Provided By (Used In) Financing Activities
|
$
|
8,939
|
$
|
(21,527
|
)
|
||
Net
Decrease
In Cash and Cash Equivalents
|
$
|
(765
|
)
|
$
|
(25,160
|
)
|
|
Cash
and Cash
Equivalents at Beginning of Period
|
26,282
|
163,577
|
|||||
Effect
of
consolidating Cherry Creek Shopping Center (Note 1) (Cherry
Creek
Shopping Center's cash balance at beginning of year)
|
2,354
|
||||||
Cash
and Cash
Equivalents at End of Period
|
$
|
25,517
|
$
|
140,771
|
Shopping
Center
|
Ownership
as
of
March
31,
2007 and
December
31, 2006
|
Arizona
Mills
|
50%
|
Fair
Oaks
Mall
|
50
|
The
Mall at
Millenia
|
50
|
The
Pier
Shops at Caesars
|
(Notes
3 and
11)
|
Stamford
Town
Center
|
50
|
Sunvalley
|
50
|
Waterside
Shops at Pelican Bay
|
25
|
Westfarms
|
79
|
March
31
|
December
31
|
||||||
2007
|
2006
|
||||||
Assets:
|
|||||||
Properties
|
$
|
1,165,885
|
$
|
1,157,872
|
|||
Accumulated depreciation and amortization
|
(328,953
|
)
|
(320,256
|
)
|
|||
$
|
836,932
|
$
|
837,616
|
||||
Cash
and cash equivalents
|
28,521
|
35,504
|
|||||
Accounts and notes receivable, less provision for bad debts of
$2,525
and
$2,032 in 2007 and 2006
|
25,290
|
26,769
|
|||||
Deferred charges and other assets
|
22,058
|
23,417
|
|||||
$
|
912,801
|
$
|
923,306
|
||||
Liabilities
and accumulated deficiency in assets:
|
|||||||
Notes
payable
|
$
|
1,096,131
|
$
|
1,097,347
|
|||
Accounts payable and other liabilities
|
77,985
|
84,177
|
|||||
TRG's
accumulated deficiency in assets
|
(164,576
|
)
|
(163,778
|
)
|
|||
Unconsolidated Joint Venture Partners' accumulated deficiency in
assets
|
(96,739
|
)
|
(94,440
|
)
|
|||
$
|
912,801
|
$
|
923,306
|
||||
TRG's
accumulated deficiency in assets (above)
|
$
|
(164,576
|
)
|
$
|
(163,778
|
)
|
|
TRG
basis
adjustments, including elimination of intercompany profit
|
76,994
|
77,797
|
|||||
TCO's
additional basis
|
70,044
|
70,530
|
|||||
Net
Investment in Unconsolidated Joint Ventures
|
$
|
(17,538
|
)
|
$
|
(15,451
|
)
|
|
Distributions
in excess of investments in and net income of Unconsolidated
Joint Ventures
|
104,792
|
101,944
|
|||||
Investment
in
Unconsolidated Joint Ventures
|
$
|
87,254
|
$
|
86,493
|
Three
Months
Ended March 31
|
|||||||
2007
|
|
|
2006
|
||||
Revenues
|
$
|
63,822
|
$
|
58,400
|
|||
Maintenance,
taxes, utilities, and other operating expenses
|
$
|
24,557
|
$
|
19,151
|
|||
Interest
expense
|
17,804
|
13,242
|
|||||
Depreciation
and amortization
|
9,728
|
9,490
|
|||||
Total
operating costs
|
$
|
52,089
|
$
|
41,883
|
|||
Interest
income
|
447
|
252
|
|||||
Net
income
|
$
|
12,180
|
$
|
16,769
|
|||
Net
income
allocable to TRG
|
$
|
8,571
|
$
|
9,025
|
|||
Realized
intercompany profit, net of depreciation on TRG’s basis
adjustments
|
101
|
(68
|
)
|
||||
Depreciation
of TCO's additional basis
|
(486
|
)
|
(486
|
)
|
|||
Equity
in
income of Unconsolidated Joint Ventures
|
$
|
8,186
|
$
|
8,471
|
|||
Beneficial
interest in Unconsolidated Joint Ventures' operations:
|
|||||||
Revenues less maintenance, taxes, utilities, and other operating
expenses
|
$
|
21,884
|
$
|
22,368
|
|||
Interest expense
|
(8,302
|
)
|
(7,556
|
)
|
|||
Depreciation and amortization
|
(5,396
|
)
|
(6,341
|
)
|
|||
Equity
in income of Unconsolidated Joint Ventures
|
$
|
8,186
|
$
|
8,471
|
At
100%
|
At
Beneficial
Interest
|
||||||||||||
Consolidated
Subsidiaries
|
Unconsolidated
Joint
Ventures
|
Consolidated
Subsidiaries
|
Unconsolidated
Joint
Ventures
|
||||||||||
Debt
as
of:
|
|||||||||||||
March
31, 2007
|
$
|
2,365,374
|
$
|
1,096,131
|
$
|
2,109,486
|
$
|
520,848
|
|||||
December 31, 2006
|
2,319,538
|
1,097,347
|
2,063,111
|
522,180
|
|||||||||
Capital
lease
obligations as of:
|
|||||||||||||
March
31, 2007
|
$
|
8,592
|
$
|
1,136
|
$
|
8,515
|
$
|
568
|
|||||
December 31, 2006
|
7,501
|
676
|
7,336
|
338
|
|||||||||
Capitalized
interest:
|
|||||||||||||
Three
months ended March 31, 2007
|
$
|
3,480
|
$
|
3,479
|
|||||||||
Three
months ended March 31, 2006
|
1,973
|
1,972
|
|||||||||||
Interest
expense:
|
|||||||||||||
Three
months ended March 31, 2007
|
$
|
29,694
|
$
|
17,804
|
$
|
26,492
|
$
|
8,302
|
|||||
Three
months ended March 31, 2006
|
34,283
|
13,242
|
31,206
|
7,556
|
Center
|
Loan
balance
as
of
3/31/07
|
|
|
TRG's
beneficial
interest
in
loan
balance
as
of
3/31/07
|
|
|
Amount
of loan
balance
guaranteed
by
TRG
as of
3/31/07
|
|
|
%
of loan balance
guaranteed
by
TRG
|
|
|
%
of interest
guaranteed
by
TRG
|
|||
|
(in
millions
of dollars)
|
|||||||||||||||
Dolphin
Mall
|
15.0
|
15.0
|
15.0
|
100
|
%
|
100
|
%
|
|||||||||
Fairlane
Town
Center
|
80.0
|
80.0
|
80.0
|
100
|
%
|
100
|
%
|
|||||||||
The
Mall at
Millenia
|
0.1
|
0.1
|
0.1
|
50
|
%
|
50
|
%
|
|||||||||
Twelve
Oaks
Mall
|
-
|
-
|
-
|
100
|
%
|
100
|
%
|
2007
|
|
Expected
volatility
|
20.76%
|
Expected
dividend yield
|
3.00%
|
Expected
terms (in years)
|
7
|
Risk-free
interest rate
|
4.45%
|
Weighted-average
grant-date fair value
|
$11.77
|
Number
of
Options
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Term
(in
years)
|
Range
of
Exercise
Prices
|
||||||||||
Outstanding
at January 1, 2007
|
1,115,376
|
$
|
32.55
|
8.5
|
$
|
29.38
- $40.39
|
|||||||
Granted
|
226,875
|
55.90
|
|
|
|||||||||
Outstanding
at March 31, 2007
|
1,342,251
|
$
|
36.50
|
8.5
|
$
|
29.38
- $55.90
|
|||||||
|
|
|
|
|
|||||||||
Fully
vested
options at March 31, 2007
|
188,191
|
$
|
35.54
|
8.5
|
|
Restricted
Stock Units
|
Weighted-Average
Grant
Date Fair Value
|
|||||
Outstanding
at January 1, 2007
|
261,685
|
$
|
35.79
|
||||
Granted
|
97,533
|
56.58
|
|||||
Redeemed
|
(672
|
)
|
34.93
|
||||
Outstanding
at March 31, 2007
|
358,546
|
41.45
|
Three
Months Ended March 31
|
|||||||
2007
|
2006
|
||||||
Net
income allocable to common shareowners (Numerator)
|
$
|
10,398
|
$
|
5,431
|
|||
Shares
(Denominator) - basic
|
53,423,628
|
52,128,022
|
|||||
Effect
of dilutive securities
|
652,631
|
222,964
|
|||||
Shares
(Denominator) - diluted
|
54,076,259
|
52,350,986
|
|||||
Income
per common share -
|
|||||||
Basic and diluted
|
$
|
0.19
|
$
|
0.10
|
Three
Months
Ended
March
31
|
|||||||
2007
|
2006
|
||||||
Average
rent
per square foot:
|
|||||||
Consolidated
Businesses
|
$
|
43.88
|
$
|
42.84
|
|||
Unconsolidated
Joint Ventures
|
41.36
|
41.80
|
|||||
Opening
base
rent per square foot:
|
|||||||
Consolidated
Businesses
|
$
|
55.99
|
$
|
44.55
|
|||
Unconsolidated
Joint Ventures
|
46.81
|
49.11
|
|||||
Square
feet
of GLA opened:
|
|||||||
Consolidated
Businesses
|
216,190
|
243,601
|
|||||
Unconsolidated
Joint Ventures
|
100,826
|
81,986
|
|||||
Closing
base
rent per square foot:
|
|||||||
Consolidated
Businesses
|
$
|
40.78
|
$
|
43.13
|
|||
Unconsolidated
Joint Ventures
|
44.84
|
44.09
|
|||||
Square
feet
of GLA closed:
|
|||||||
Consolidated
Businesses
|
399,647
|
392,128
|
|||||
Unconsolidated
Joint Ventures
|
137,792
|
144,647
|
|||||
Releasing
spread per square foot:
|
|||||||
Consolidated
Businesses
|
$
|
15.21
|
$
|
1.42
|
|||
Unconsolidated
Joint Ventures
|
1.97
|
5.02
|
1st
Quarter
2007
|
Total
2006
|
4th
Quarter
2006
|
3rd
Quarter
2006
|
2nd
Quarter
2006
|
1st
Quarter
2006
|
||||||||||||||
(in
thousands
of dollars, except as indicated)
|
|||||||||||||||||||
Mall
tenant
sales
|
1,022,341
|
4,348,826
|
1,447,188
|
985,224
|
989,275
|
927,139
|
|||||||||||||
Revenues
and
gains on land sales and
interest
income:
|
|||||||||||||||||||
Consolidated Businesses
|
145,417
|
588,744
|
163,455
|
140,065
|
144,780
|
140,444
|
|||||||||||||
Unconsolidated Joint Ventures
|
64,275
|
253,486
|
72,584
|
63,772
|
58,554
|
58,576
|
|||||||||||||
Occupancy:
|
|||||||||||||||||||
Ending-comparable
|
89.6
|
%
|
91.3
|
%
|
91.3
|
%
|
89.3
|
%
|
88.8
|
%
|
88.2
|
%
|
|||||||
Average-comparable
|
89.7
|
89.1
|
90.5
|
89.0
|
88.6
|
88.2
|
|||||||||||||
Ending
|
89.7
|
91.3
|
91.3
|
89.5
|
89.0
|
88.3
|
|||||||||||||
Average
|
89.8
|
89.2
|
90.6
|
89.2
|
88.7
|
88.4
|
|||||||||||||
Leased
space:
|
|||||||||||||||||||
Comparable
|
92.0
|
%
|
92.4
|
%
|
92.4
|
%
|
92.3
|
%
|
91.7
|
%
|
90.8
|
%
|
|||||||
All
centers
|
92.1
|
92.5
|
92.5
|
92.4
|
91.8
|
90.9
|
1st
Quarter
2007
|
Total
2006
|
4th
Quarter
2006
|
3rd
Quarter
2006
|
2nd
Quarter
2006
|
1st
Quarter
2006
|
||||||||||||||
Consolidated
Businesses:
|
|||||||||||||||||||
Minimum rents
|
10.0
|
%
|
9.1
|
%
|
7.1
|
%
|
9.9
|
%
|
9.9
|
%
|
10.5
|
%
|
|||||||
Percentage rents
|
0.3
|
0.4
|
0.8
|
0.3
|
0.1
|
0.4
|
|||||||||||||
Expense recoveries
|
5.1
|
4.9
|
4.2
|
4.9
|
5.6
|
4.8
|
|||||||||||||
Mall
tenant occupancy costs
|
15.4
|
%
|
14.4
|
%
|
12.1
|
%
|
15.1
|
%
|
15.6
|
%
|
15.7
|
%
|
|||||||
Unconsolidated
Joint Ventures:
|
|||||||||||||||||||
Minimum rents
|
8.8
|
%
|
8.3
|
%
|
6.4
|
%
|
9.2
|
%
|
9.1
|
%
|
9.7
|
%
|
|||||||
Percentage rents
|
0.2
|
0.4
|
0.8
|
0.3
|
0.2
|
0.2
|
|||||||||||||
Expense recoveries
|
3.9
|
3.8
|
3.2
|
4.1
|
4.1
|
3.9
|
|||||||||||||
Mall
tenant occupancy costs
|
12.9
|
%
|
12.5
|
%
|
10.4
|
%
|
13.6
|
%
|
13.4
|
%
|
13.8
|
%
|
Three
Months
Ended
March
31,
2007
|
Three
Months
Ended
March
31,
2006
|
|||
CONSOLIDATED
BUSINESSES
|
UNCONSOLIDATED
JOINT
VENTURES
AT
100%
(1)
|
CONSOLIDATED
BUSINESSES
|
UNCONSOLIDATED
JOINT
VENTURES
AT
100%(1)
|
REVENUES:
|
|||||||||||||
Minimum
rents
|
78.7
|
38.4
|
76.0
|
34.5
|
|||||||||
Percentage
rents
|
2.3
|
1.0
|
2.9
|
0.9
|
|||||||||
Expense
recoveries
|
50.6
|
22.6
|
44.9
|
18.1
|
|||||||||
Management,
leasing and development services
|
4.9
|
2.9
|
|||||||||||
Other
|
8.6
|
1.8
|
11.3
|
4.8
|
|||||||||
Total
revenues
|
145.0
|
63.8
|
138.0
|
58.3
|
|||||||||
EXPENSES:
|
|||||||||||||
Maintenance, taxes, and utilities
|
37.9
|
17.7
|
34.8
|
13.4
|
|||||||||
Other
operating
|
16.8
|
6.4
|
16.6
|
5.2
|
|||||||||
Management, leasing and development services
|
2.8
|
1.5
|
|||||||||||
General and administrative
|
7.3
|
6.9
|
|||||||||||
Interest expense (2)
|
29.7
|
17.8
|
34.3
|
13.2
|
|||||||||
Depreciation and amortization (3)
|
32.5
|
10.2
|
33.4
|
10.2
|
|||||||||
Total
expenses
|
127.1
|
52.1
|
127.5
|
42.0
|
|||||||||
Gains
on land
sales and interest income
|
0.4
|
0.4
|
2.4
|
0.3
|
|||||||||
18.4
|
12.2
|
12.9
|
16.5
|
||||||||||
Equity
in
income of Unconsolidated Joint Ventures (3)
|
8.2
|
8.5
|
|||||||||||
Income
before
minority and preferred interests
|
26.6
|
21.4
|
|||||||||||
Minority
and
preferred interests:
|
|||||||||||||
TRG
preferred distributions
|
(0.6
|
)
|
(0.6
|
)
|
|||||||||
Minority share of income of consolidated joint ventures
|
(1.9
|
)
|
(1.7
|
)
|
|||||||||
Distributions less than minority share of income of
consolidated joint ventures
|
0.6
|
1.2
|
|||||||||||
Minority share of income of TRG
|
(7.7
|
)
|
(5.7
|
)
|
|||||||||
Distributions in excess of minority share of income of
TRG
|
(2.8
|
)
|
(3.2
|
)
|
|||||||||
Net
income
|
14.1
|
11.4
|
|||||||||||
Preferred
dividends
|
(3.7
|
)
|
(6.0
|
)
|
|||||||||
Net
income
allocable to common shareowners
|
10.4
|
5.4
|
|||||||||||
SUPPLEMENTAL
INFORMATION:
|
|||||||||||||
EBITDA
- 100%
|
80.6
|
40.1
|
80.6
|
40.0
|
|||||||||
EBITDA
- outside partners' share
|
(8.8
|
)
|
(18.2
|
)
|
(7.9
|
)
|
(17.6
|
)
|
|||||
Beneficial interest in EBITDA
|
71.8
|
21.9
|
72.7
|
22.4
|
|||||||||
Beneficial interest expense
|
(26.5
|
)
|
(8.3
|
)
|
(31.2
|
)
|
(7.6
|
)
|
|||||
Non-real estate depreciation
|
(0.7
|
)
|
(0.6
|
)
|
|||||||||
Preferred dividends and distributions
|
(4.3
|
)
|
(6.6
|
)
|
|||||||||
Funds
from Operations contribution
|
40.3
|
13.6
|
34.3
|
14.8
|
(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 our ownership interest. In our consolidated financial statements, we account for investments in the Unconsolidated Joint Ventures under the equity method. |
(2) | Interest expense for the three months ended March 31, 2006 includes a $2.1 million charge incurred in connection with the write-off of financing costs related to the pay-off of the loans on Willow Bend when the loans became prepayable without penalty. |
(3) | Amortization of our additional basis in the Operating Partnership included in depreciation and amortization was $1.2 million in both 2007 and 2006. Also, amortization of our additional basis included in equity in income of Unconsolidated Joint Ventures was $0.5 million in both 2007 and 2006. |
(4) | Amounts in this table may not add due to rounding. |
Three
Months
Ended
March
31
|
|||||||
2007
|
2006
|
||||||
(in
millions
of dollars, except
as
indicated)
|
|||||||
Net
income
allocable to common shareowners
|
10.4
|
5.4
|
|||||
Add
(less)
depreciation and amortization: (1)
|
|||||||
Consolidated
businesses at 100%
|
32.5
|
33.4
|
|||||
Minority
partners in consolidated joint ventures
|
(3.7
|
)
|
(3.1
|
)
|
|||
Share
of
unconsolidated joint ventures
|
5.4
|
6.3
|
|||||
Non-real
estate depreciation
|
(0.7
|
)
|
(0.6
|
)
|
|||
Add
(less)
minority interests:
|
|||||||
Minority
share of income of TRG
|
7.7
|
5.7
|
|||||
Distributions
in excess of minority share of income of TRG
|
2.8
|
3.2
|
|||||
Distributions
less than minority share of income of consolidated joint
ventures
|
(0.6
|
)
|
(1.2
|
)
|
|||
Funds
from
Operations
|
53.9
|
49.1
|
|||||
TCO's
average
ownership percentage of TRG
|
65.9
|
%
|
64.3
|
%
|
|||
Funds
from
Operations allocable to TCO
|
35.5
|
31.6
|
(1) |
Depreciation
includes $2.6 million and $1.8 million of mall tenant allowance
amortization for the three months ended March 31, 2007 and 2006,
respectively.
|
(2) |
Amounts
in
this table may not recalculate due to
rounding.
|
Three
Months
Ended
March
31
|
|||||||
2007
|
2006
|
||||||
(in
millions
of dollars, except
as
indicated)
|
|||||||
Net
income
|
14.1
|
11.4
|
|||||
Add
(less)
depreciation and amortization:
|
|||||||
Consolidated
businesses at 100%
|
32.5
|
33.4
|
|||||
Minority
partners in consolidated joint ventures
|
(3.7
|
)
|
(3.1
|
)
|
|||
Share
of
unconsolidated joint ventures
|
5.4
|
6.3
|
|||||
Add
(less)
preferred interests and interest expense:
|
|||||||
Preferred
distributions
|
0.6
|
0.6
|
|||||
Interest
expense:
|
|||||||
Consolidated
businesses at 100%
|
29.7
|
34.3
|
|||||
Minority
partners in consolidated joint ventures
|
(3.2
|
)
|
(3.1
|
)
|
|||
Share
of
unconsolidated joint ventures
|
8.3
|
7.6
|
|||||
Add
(less)
minority interests:
|
|||||||
Minority
share of income of TRG
|
7.7
|
5.7
|
|||||
Distributions
in excess of minority share of income of TRG
|
2.8
|
3.2
|
|||||
Distributions
less than minority share of income of consolidated joint
ventures
|
(0.6
|
)
|
(1.2
|
)
|
|||
Beneficial
interest in EBITDA
|
93.6
|
95.1
|
|||||
TCO's
average
ownership percentage of TRG
|
65.9
|
%
|
64.3
|
%
|
|||
Beneficial
interest in EBITDA allocable to TCO
|
61.7
|
61.1
|
(1) |
Amounts
in
this table may not recalculate due to
rounding.
|
Amount
|
Interest
Rate
Including
Spread
|
||||||||
(in
millions
of dollars)
|
|||||||||
Fixed
rate
debt
|
2,473.7
|
5.66
|
%
|
(1) | |||||
Floating
rate
debt:
|
|||||||||
Swapped through October 2012
|
15.0
|
5.95
|
%
|
||||||
Floating month to month
|
141.7
|
6.17
|
%
|
(1) | |||||
Total floating rate debt
|
156.7
|
6.15
|
%
|
(1) | |||||
Total
beneficial interest in debt
|
2,630.3
|
5.69
|
%
|
(1) | |||||
Amortization
of financing costs (2)
|
0.17
|
%
|
|||||||
Average
all-in rate
|
5.86
|
%
|
(1) |
Represents
weighted average interest rate before amortization of financing
costs.
|
(2) |
Financing
costs include financing fees, interest rate cap premiums, and losses
on
settlement of derivatives used to hedge the refinancing of certain
fixed
rate debt.
|
(3) |
Amounts
in
table may not add due to rounding.
|
Payments
due
by period
|
||||||||||||||||
Total
|
Less
than
1
year
(2007)
|
1-3
years
(2008-2009)
|
3-5
years
(2010-2011)
|
More
than
5
years
(2012+)
|
||||||||||||
(in
millions
of dollars)
|
||||||||||||||||
Debt
(1)
|
2,365.4
|
12.3
|
313.7
|
254.3
|
1,785.1
|
|||||||||||
Interest
payments
|
897.8
|
99.9
|
241.3
|
215.6
|
341.0
|
|||||||||||
Purchase
obligations -
|
||||||||||||||||
Planned capital spending (2)
|
165.0
|
165.0
|
(1) |
The
settlement
periods for debt do not consider extension options. Amounts relating
to
interest on floating rate debt are calculated based on the debt balances
and interest rates as of March 31,
2007.
|
(2) |
As
of March
31, 2007, we were contractually liable for $87.7 million of this
planned
spending. See "Planned Capital Spending" for detail regarding planned
funding. The Pier Shops is not included in these
amounts.
|
(3) |
Amounts
in
this table may not add due to
rounding.
|
Center
|
Loan
balance
as
of
3/31/07
|
|
|
TRG's
beneficial
interest
in
loan
balance
as
of
3/31/07
|
|
|
Amount
of loan
balance
guaranteed
by
TRG
as of
3/31/07
|
|
|
%
of loan balance
guaranteed
by
TRG
|
|
|
%
of interest
guaranteed
by
TRG
|
|||
|
(in
millions
of dollars)
|
|||||||||||||||
Dolphin
Mall
|
15.0
|
15.0
|
15.0
|
100
|
%
|
100
|
%
|
|||||||||
Fairlane
Town
Center
|
80.0
|
80.0
|
80.0
|
100
|
%
|
100
|
%
|
|||||||||
The
Mall at
Millenia
|
0.1
|
0.1
|
0.1
|
50
|
%
|
50
|
%
|
|||||||||
Twelve
Oaks
Mall
|
-
|
-
|
-
|
100
|
%
|
100
|
%
|
2007
(1)
|
|||||||||||||
Consolidated
Businesses
|
Beneficial
Interest
in
Consolidated Businesses
|
Unconsolidated
Joint
Ventures
|
Beneficial
Interest in Unconsolidated
Joint
Ventures
|
||||||||||
(in
millions
of dollars)
|
|||||||||||||
New
Development Projects:
|
|||||||||||||
Pre-construction development activities (2)
|
18.2
|
18.2
|
|||||||||||
New
centers (3)
|
9.5
|
9.5
|
|||||||||||
Existing
Centers:
|
|||||||||||||
Renovation projects with incremental GLA and/or
anchor
replacement (4)
|
7.0
|
7.0
|
7.4
|
2.7
|
|||||||||
Renovations with no incremental GLA effectand
other
|
0.8
|
0.7
|
1.2
|
0.7
|
|||||||||
Mall
tenant allowances (5)
|
0.4
|
0.4
|
0.3
|
0.1
|
|||||||||
Asset
replacement costs reimbursable by tenants
|
1.1
|
1.0
|
0.2
|
0.1
|
|||||||||
Corporate
office improvements and equipment
|
0.3
|
0.3
|
|||||||||||
Additions
to
properties
|
37.4
|
37.2
|
9.0
|
3.5
|
(1) |
Costs
are net
of intercompany profits and are computed on an accrual basis.
|
(2) |
Primarily
includes costs to acquire land for future development in North Atlanta,
Georgia, and project costs of North Atlanta and Oyster
Bay.
|
(3) |
Includes
costs
related to Partridge Creek.
|
(4) |
Includes
costs
related to the renovation at Stamford Town Center and the expansion
at
Twelve Oaks.
|
(5) |
Excludes
initial lease-up costs.
|
(6) |
Amounts
in
this table may not add due to
rounding.
|
|
(in
millions
of dollars)
|
|||
Consolidated
Businesses’ capital spending
|
37.4
|
|||
Differences
between cash and accrual basis
|
7.4
|
|||
Additions
to
properties
|
44.8
|
2007
(1)
|
|||||||||||||
Consolidated
Businesses
|
Beneficial
Interest in Consolidated Businesses
|
Unconsolidated
Joint
Ventures
|
Beneficial
Interest in Unconsolidated Joint Ventures
|
||||||||||
(in
millions
of dollars)
|
|||||||||||||
New
development projects (2)
|
120.1
|
120.1
|
|||||||||||
Existing
centers (3)
|
81.2
|
78.2
|
55.1
|
28.7
|
|||||||||
Corporate
office improvements and equipment
|
1.0
|
1.0
|
|||||||||||
Total
|
202.4
|
199.4
|
55.1
|
28.7
|
(1) |
Costs
are net
of intercompany profits.
|
(2) |
Includes
costs
related to Partridge Creek, Oyster Bay, and North
Atlanta.
|
(3) |
Includes
costs
related to the renovation at Stamford Town Center and the expansion
at
Twelve Oaks.
|
(4) |
Amounts
in
this table may not add due to
rounding.
|
10(a)
|
--
|
|
12
|
--
|
|
31(a)
|
--
|
|
31(b)
|
--
|
|
32(a)
|
--
|
|
32(b)
|
--
|
|
99
|
--
|
TAUBMAN
CENTERS, INC.
|
|
Date:
April
27, 2007
|
By:
/s/
Lisa A.
Payne
|
Lisa
A.
Payne
|
|
Vice
Chairman, Chief Financial Officer, and Director (Principal Financial
Officer)
|