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: June 30, 2009
|
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, Bloomfield Hills, Michigan
|
48304-2324
|
|||
(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 check mark whether the registrant has submitted electronically and
posted on its corporate Web site, if any, every Interactive Data File
required to be submitted and posted pursuant to Rule 405 of Regulation S-T
during the preceding 12 months (or for such shorter period that the
registrant was required to submit and post such files).
|
o Yes o
No
|
Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting
company. See the definitions of "large accelerated filer,” “accelerated
filer" and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
(Check one):
|
Large
Accelerated Filer x Accelerated
Filer o
Non-Accelerated Filer o Smaller Reporting
Company o
|
(Do not check if a smaller
reporting company)
|
Indicate
by a check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).
|
o Yes
x
No
|
As
of August 3, 2009, there were outstanding 53,121,234 shares of the
Company's common stock, par value $0.01 per
share.
|
PART
I – FINANCIAL INFORMATION
|
||
Item
1.
|
Financial
Statements (Unaudited):
|
|
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||
|
||
Item
2.
|
||
Item
3.
|
||
Item
4.
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||
PART
II – OTHER INFORMATION
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||
Item
1.
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||
Item
1A.
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||
Item
4.
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||
Item
6.
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June
30
|
December
31
|
|||||||
2009
|
2008
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|||||||
Properties
|
$ | 3,708,342 | $ | 3,699,480 | ||||
Accumulated depreciation and
amortization
|
(1,106,675 | ) | (1,049,626 | ) | ||||
$ | 2,601,667 | $ | 2,649,854 | |||||
Investment in Unconsolidated Joint
Ventures (Note 3)
|
88,636 | 89,933 | ||||||
Cash and cash
equivalents
|
11,772 | 62,126 | ||||||
Accounts and notes receivable,
less allowance for doubtful accounts of $8,502
and $9,895 in 2009 and
2008
|
32,761 | 46,732 | ||||||
Accounts receivable from related
parties
|
1,686 | 1,850 | ||||||
Deferred charges and other
assets
|
121,722 | 124,487 | ||||||
$ | 2,858,244 | $ | 2,974,982 | |||||
Liabilities:
|
||||||||
Notes payable (Note
4)
|
$ | 2,758,938 | $ | 2,796,821 | ||||
Accounts payable and accrued
liabilities
|
234,068 | 262,226 | ||||||
Dividends payable
|
22,002 | |||||||
Distributions in excess of
investments in and net income of Unconsolidated
|
||||||||
Joint Ventures (Note
3)
|
155,141 | 154,141 | ||||||
$ | 3,148,147 | $ | 3,235,190 | |||||
Commitments
and contingencies (Notes 1, 4, 5, 7, and 8)
|
||||||||
Equity:
|
||||||||
Taubman Centers, Inc. Shareowners’
Equity:
|
||||||||
Series B Non-Participating
Convertible Preferred Stock, $0.001 par and
liquidation value, 40,000,000
shares authorized, 26,419,235 and 26,429,235
shares issued and outstanding
at June 30, 2009 and December 31, 2008
|
$ | 26 | $ | 26 | ||||
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 June
30, 2009 and December 31, 2008
|
||||||||
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 June
30, 2009 and December 31, 2008
|
||||||||
Common Stock, $0.01 par value,
250,000,000 shares authorized, 53,120,769
and 53,018,987 shares issued
and outstanding at June 30, 2009 and
December 31,
2008
|
531 | 530 | ||||||
Additional paid-in
capital
|
559,240 | 556,145 | ||||||
Accumulated other comprehensive
income (loss)
|
(26,498 | ) | (29,778 | ) | ||||
Dividends in excess of net income
(Note 1)
|
(749,965 | ) | (726,097 | ) | ||||
$ | (216,666 | ) | $ | (199,174 | ) | |||
Noncontrolling interests (Note
1)
|
(73,237 | ) | (61,034 | ) | ||||
$ | (289,903 | ) | $ | (260,208 | ) | |||
$ | 2,858,244 | $ | 2,974,982 |
Three
Months Ended June 30
|
||||||||
2009
|
2008
|
|||||||
Minimum rents
|
$ | 84,016 | $ | 87,583 | ||||
Percentage rents
|
561 | 1,325 | ||||||
Expense recoveries
|
58,525 | 60,384 | ||||||
Management, leasing, and
development services
|
3,189 | 3,891 | ||||||
Other
|
12,648 | 7,229 | ||||||
$ | 158,939 | $ | 160,412 | |||||
Expenses:
|
||||||||
Maintenance, taxes, and
utilities
|
$ | 46,946 | $ | 46,485 | ||||
Other operating
|
16,352 | 19,695 | ||||||
Restructuring charge (Note
1)
|
169 | |||||||
Management, leasing, and
development services
|
1,930 | 2,421 | ||||||
General and
administrative
|
6,847 | 7,943 | ||||||
Interest expense
|
36,473 | 35,972 | ||||||
Depreciation and
amortization
|
36,058 | 36,179 | ||||||
$ | 144,775 | $ | 148,695 | |||||
Gains
on land sales and other nonoperating income
|
198 | 1,456 | ||||||
Impairment
loss on marketable securities (Note 10)
|
(1,666 | ) | ||||||
Income
before income tax expense and equity in income of
Unconsolidated
Joint Ventures
|
$ | 12,696 | $ | 13,173 | ||||
Income
tax expense (Note 2)
|
(198 | ) | (250 | ) | ||||
Equity
in income of Unconsolidated Joint Ventures (Note 3)
|
8,368 | 8,491 | ||||||
Net
income
|
$ | 20,866 | $ | 21,414 | ||||
Net
income attributable to noncontrolling interests (Note 1)
|
(7,938 | ) | (17,021 | ) | ||||
Net
income attributable to Taubman Centers, Inc.
|
$ | 12,928 | $ | 4,393 | ||||
Distributions
to participating securities of TRG (Note 7)
|
(361 | ) | (361 | ) | ||||
Preferred
stock dividends
|
(3,659 | ) | (3,659 | ) | ||||
Net
income attributable to Taubman Centers, Inc. common
shareowners
|
$ | 8,908 | $ | 373 | ||||
Basic
and diluted earnings per common share (Note 9)
|
$ | 0.17 | $ | 0.01 | ||||
Cash
dividends declared per common share
|
$ | 0.415 | $ | 0.415 | ||||
Weighted
average number of common shares outstanding – basic
|
53,120,769 | 52,859,653 |
Six
Months Ended June 30
|
||||||||
2009
|
2008
|
|||||||
Minimum rents
|
$ | 171,452 | $ | 174,153 | ||||
Percentage rents
|
2,721 | 3,900 | ||||||
Expense recoveries
|
115,283 | 117,848 | ||||||
Management, leasing, and
development services
|
6,745 | 7,585 | ||||||
Other
|
20,428 | 14,343 | ||||||
$ | 316,629 | $ | 317,829 | |||||
Expenses:
|
||||||||
Maintenance, taxes, and
utilities
|
$ | 91,487 | $ | 90,025 | ||||
Other operating
|
31,317 | 37,996 | ||||||
Restructuring charge (Note
1)
|
2,630 | |||||||
Management, leasing, and
development services
|
3,836 | 4,678 | ||||||
General and
administrative
|
13,735 | 16,276 | ||||||
Interest expense
|
72,706 | 72,954 | ||||||
Depreciation and
amortization
|
72,351 | 71,514 | ||||||
$ | 288,062 | $ | 293,443 | |||||
Gains
on land sales and other nonoperating income
|
433 | 3,259 | ||||||
Impairment
loss on marketable securities (Note 10)
|
(1,666 | ) | ||||||
Income
before income tax expense and equity in income of
Unconsolidated
Joint Ventures
|
$ | 27,334 | $ | 27,645 | ||||
Income
tax expense (Note 2)
|
(468 | ) | (440 | ) | ||||
Equity
in income of Unconsolidated Joint Ventures (Note 3)
|
18,526 | 17,725 | ||||||
Net
income
|
$ | 45,392 | $ | 44,930 | ||||
Net
income attributable to noncontrolling interests (Note 1)
|
(16,832 | ) | (31,970 | ) | ||||
Net
income attributable to Taubman Centers, Inc.
|
$ | 28,560 | $ | 12,960 | ||||
Distributions
to participating securities of TRG (Note 7)
|
(836 | ) | (723 | ) | ||||
Preferred
stock dividends
|
(7,317 | ) | (7,317 | ) | ||||
Net
income attributable to Taubman Centers, Inc. common
shareowners
|
$ | 20,407 | $ | 4,920 | ||||
Basic
and diluted earnings per common share (Note 9)
|
$ | 0.38 | $ | 0.09 | ||||
Cash
dividends declared per common share
|
$ | 0.83 | $ | 0.83 | ||||
Weighted
average number of common shares outstanding – basic
|
53,093,988 | 52,767,430 |
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||||||||||||||||||
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||||||||||||||||||
|
|
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||||||||||||||||
Taubman
Centers, Inc. Shareowners’ Equity
|
|
|
Preferred Stock
Shares Amount
|
Common Stock
Shares Amount
|
Paid-In
Capital
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Dividends
in
Excess
of
Net
Income
|
Total
TCO
Shareowners'
Equity
|
Noncontrolling
Interests
|
Total
Equity
|
|||||||||||||||||||||||||||||||
34,004,235 | $ | 27 | 52,624,013 | $ | 526 | $ | 543,333 | $ | (8,639 | ) | $ | (551,089 | ) | $ | (15,842 | ) | $ | 2,379 | $ | (13,463 | ) | ||||||||||||||||||
Issuance
of stock pursuant to
Continuing Offer
(Notes 6, 7, and 8)
|
(10,000 | ) | 10,000 | ||||||||||||||||||||||||||||||||||||
Share-based
compensation under
employee and
director benefit
plans
(Note 7)
|
258,591 | 3 | 7,584 | 7,587 | 7,587 | ||||||||||||||||||||||||||||||||||
Purchase
of additional interest in
subsidiary
|
(475 | ) | (475 | ) | |||||||||||||||||||||||||||||||||||
Dividend
equivalents (Note 7)
|
(302 | ) | (302 | ) | (302 | ) | |||||||||||||||||||||||||||||||||
Dividends
and distributions
|
(51,869 | ) | (51,869 | ) | (85,144 | ) | (137,013 | ) | |||||||||||||||||||||||||||||||
Net
income
|
12,960 | 12,960 | 31,970 | 44,930 | |||||||||||||||||||||||||||||||||||
Other
comprehensive income (Note 5):
|
|||||||||||||||||||||||||||||||||||||||
Unrealized gain on
interest
rate
instruments and other
|
624 | 624 | 22 | 646 | |||||||||||||||||||||||||||||||||||
Reclassification adjustment
for
amounts recognized in net
income
|
631 | 631 | 631 | ||||||||||||||||||||||||||||||||||||
Total
comprehensive income
|
$ | 14,215 | $ | 31,992 | $ | 46,207 | |||||||||||||||||||||||||||||||||
Balance,
June 30, 2008
|
33,994,235 | $ | 27 | 52,892,604 | $ | 529 | $ | 550,917 | $ | (7,384 | ) | $ | (590,300 | ) | $ | (46,211 | ) | $ | (51,248 | ) | $ | (97,459 | ) | ||||||||||||||||
Balance,
January 1, 2009
|
33,909,235 | $ | 26 | 53,018,987 | $ | 530 | $ | 556,145 | $ | (29,778 | ) | $ | (726,097 | ) | $ | (199,174 | ) | $ | (61,034 | ) | $ | (260,208 | ) | ||||||||||||||||
Issuance
of stock pursuant to
Continuing Offer
(Notes
6, 7, and 8)
|
(10,000 | ) | 24,759 | 4 | 4 | (4 | ) | ||||||||||||||||||||||||||||||||
Share-based
compensation under
employee and
director benefit
plans (Note 7)
|
77,023 | 1 | 3,091 | 3,092 | 3,092 | ||||||||||||||||||||||||||||||||||
Dividend
equivalents (Note 7)
|
(179 | ) | (179 | ) | (179 | ) | |||||||||||||||||||||||||||||||||
Dividends
and distributions
|
(52,249 | ) | (52,249 | ) | (32,328 | ) | (84,577 | ) | |||||||||||||||||||||||||||||||
Net
income
|
28,560 | 28,560 | 16,832 | 45,392 | |||||||||||||||||||||||||||||||||||
Other
comprehensive income
(Note 5):
|
|||||||||||||||||||||||||||||||||||||||
Unrealized gain on interest
rate instruments and other
|
1,747 | 1,747 | 2,533 | 4,280 | |||||||||||||||||||||||||||||||||||
Reclassification adjustment for
amounts
recognized in net
income:
|
|||||||||||||||||||||||||||||||||||||||
Impairment
loss on marketable
securities
|
1,112 | 1,112 | 554 | 1,666 | |||||||||||||||||||||||||||||||||||
Other
|
421 | 421 | 210 | 631 | |||||||||||||||||||||||||||||||||||
Total
comprehensive income
|
$ | 31,840 | $ | 20,129 | $ | 51,969 | |||||||||||||||||||||||||||||||||
Balance,
June 30, 2009
|
33,899,235 | $ | 26 | 53,120,769 | $ | 531 | $ | 559,240 | $ | (26,498 | ) | $ | (749,965 | ) | $ | (216,666 | ) | $ | (73,237 | ) | $ | (289,903 | ) | ||||||||||||||||
Six
Months Ended June 30
|
||||||||
2009
|
2008
|
|||||||
Net income
|
$ | 45,392 | $ | 44,930 | ||||
Adjustments to reconcile net
income to net cash provided by operating activities:
|
||||||||
Depreciation and
amortization
|
72,351 | 71,514 | ||||||
Provision for bad
debts
|
3,114 | 2,383 | ||||||
Gains on sales of
land
|
(2,192 | ) | ||||||
Impairment loss on marketable
securities
|
1,666 | |||||||
Other
|
4,913 | 4,498 | ||||||
Increase (decrease) in cash
attributable to changes in assets and liabilities:
|
||||||||
Receivables, deferred charges,
and other assets
|
3,101 | 3,965 | ||||||
Accounts payable and other
liabilities
|
(18,786 | ) | (23,201 | ) | ||||
Net
Cash Provided By Operating Activities
|
$ | 111,751 | $ | 101,897 | ||||
Cash
Flows From Investing Activities:
|
||||||||
Additions to
properties
|
$ | (24,824 | ) | $ | (54,480 | ) | ||
Funding of The Mall at Studio City
escrow
|
(54,334 | ) | ||||||
Proceeds from sales of
land
|
5,274 | |||||||
Repayment of note
receivable
|
4,500 | |||||||
Contributions to Unconsolidated
Joint Ventures
|
(1,445 | ) | (5,998 | ) | ||||
Distributions from Unconsolidated
Joint Ventures in excess of income
|
5,060 | 61,605 | ||||||
Other
|
868 | (1,936 | ) | |||||
Net
Cash Used In Investing Activities
|
$ | (15,841 | ) | $ | (49,869 | ) | ||
Cash
Flows From Financing Activities:
|
||||||||
Debt proceeds
|
$ | 871 | $ | 333,503 | ||||
Debt payments
|
(38,378 | ) | (259,951 | ) | ||||
Debt issuance
costs
|
(3,425 | ) | ||||||
Issuance of common stock and/or
partnership units in connection
with incentive
plans
|
(1,204 | ) | 2,615 | |||||
Distributions to noncontrolling
interests in TRG (Note 1)
|
(32,328 | ) | (85,144 | ) | ||||
Distributions to participating
securities of TRG
|
(836 | ) | (723 | ) | ||||
Cash dividends to preferred
shareowners
|
(7,317 | ) | (7,317 | ) | ||||
Cash dividends to common
shareowners
|
(66,092 | ) | (43,754 | ) | ||||
Other
|
(980 | ) | (1,423 | ) | ||||
Net
Cash Used In Financing Activities
|
$ | (146,264 | ) | $ | (65,619 | ) | ||
Net
Decrease In Cash and Cash Equivalents
|
$ | (50,354 | ) | $ | (13,591 | ) | ||
Cash
and Cash Equivalents at Beginning of Period
|
62,126 | 47,166 | ||||||
Cash
and Cash Equivalents at End of Period
|
$ | 11,772 | $ | 33,575 |
2009
|
2008
|
|||||||
Noncontrolling
interests:
|
||||||||
Noncontrolling interests in
consolidated joint ventures
|
$ | (90,579 | ) | $ | (90,251 | ) | ||
Noncontrolling interests in
TRG
|
(11,875 | ) | ||||||
Preferred equity of
TRG
|
29,217 | 29,217 | ||||||
$ | (73,237 | ) | $ | (61,034 | ) |
2009
|
2008
|
|||||||
Net
income attributable to noncontrolling interests:
|
||||||||
Noncontrolling share of income of
consolidated joint ventures
|
$ | 2,033 | $ | 1,130 | ||||
Distributions in excess of
noncontrolling share of income of
consolidated joint
ventures
|
4,258 | |||||||
TRG Series F preferred
distributions
|
615 | 615 | ||||||
Noncontrolling share of income of
TRG
|
5,290 | 4,505 | ||||||
Distributions in excess of
noncontrolling share of income of TRG
|
6,513 | |||||||
$ | 7,938 | $ | 17,021 |
2009
|
2008
|
|||||||
Net
income attributable to noncontrolling interests:
|
||||||||
Noncontrolling share of income of
consolidated joint ventures
|
$ | 3,726 | $ | 2,306 | ||||
Distributions in excess of
noncontrolling share of income of
consolidated joint
ventures
|
6,395 | |||||||
TRG Series F preferred
distributions
|
1,230 | 1,230 | ||||||
Noncontrolling share of income of
TRG
|
11,876 | 10,421 | ||||||
Distributions in excess of
noncontrolling share of income of TRG
|
11,618 | |||||||
$ | 16,832 | $ | 31,970 |
Three
Months Ended
June
30
|
Six
Months Ended
June
30
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Federal
and state expense – current
|
$ | 362 | $ | 192 | $ | 680 | $ | 392 | ||||||||
Federal
and state expense (benefit) – deferred
|
(164 | ) | 58 | (212 | ) | 48 | ||||||||||
$ | 198 | $ | 250 | $ | 468 | $ | 440 |
Shopping Center
|
Ownership
as of
June
2009 and
December 31, 2008
|
Arizona
Mills
|
50 | % | ||
Fair
Oaks
|
50 | |||
The
Mall at Millenia
|
50 | |||
Stamford
Town Center
|
50 | |||
Sunvalley
|
50 | |||
Waterside
Shops
|
25 | |||
Westfarms
|
79 |
June
30
2009
|
December
31
2008
|
|||||||
Assets:
|
||||||||
Properties
|
$ | 1,090,505 | $ | 1,087,341 | ||||
Accumulated depreciation and
amortization
|
(381,331 | ) | (366,168 | ) | ||||
$ | 709,174 | $ | 721,173 | |||||
Cash and cash
equivalents
|
19,196 | 28,946 | ||||||
Accounts and notes receivable,
less allowance for doubtful accounts
of $2,406 and $1,419 in 2009
and 2008
|
18,560 | 26,603 | ||||||
Deferred charges and other
assets
|
19,904 | 20,098 | ||||||
$ | 766,834 | $ | 796,820 | |||||
Liabilities
and accumulated deficiency in assets:
|
||||||||
Notes payable
|
$ | 1,098,370 | $ | 1,103,903 | ||||
Accounts payable and other
liabilities
|
42,235 | 61,570 | ||||||
TRG's accumulated deficiency in
assets
|
(203,175 | ) | (201,466 | ) | ||||
Unconsolidated Joint Venture
Partners' accumulated deficiency
in assets
|
(170,596 | ) | (167,187 | ) | ||||
$ | 766,834 | $ | 796,820 | |||||
TRG's
accumulated deficiency in assets (above)
|
$ | (203,175 | ) | $ | (201,466 | ) | ||
Contribution
payable
|
(1,005 | ) | ||||||
TRG
basis adjustments, including elimination of intercompany
profit
|
71,003 | 71,623 | ||||||
TCO's
additional basis
|
65,667 | 66,640 | ||||||
Net
Investment in Unconsolidated Joint Ventures
|
$ | (66,505 | ) | $ | (64,208 | ) | ||
Distributions
in excess of investments in and net income of
Unconsolidated Joint
Ventures
|
155,141 | 154,141 | ||||||
Investment
in Unconsolidated Joint Ventures
|
$ | 88,636 | $ | 89,933 |
Three
Months Ended
June
30
|
Six
Months Ended
June
30
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Revenues
|
$ | 63,654 | $ | 63,497 | $ | 129,744 | $ | 127,571 | ||||||||
Maintenance,
taxes, utilities, and other operating
expenses
|
$ | 23,363 | $ | 22,470 | $ | 46,368 | $ | 45,130 | ||||||||
Interest
expense
|
16,120 | 16,272 | 32,068 | 32,144 | ||||||||||||
Depreciation
and amortization
|
9,757 | 9,497 | 18,960 | 18,814 | ||||||||||||
Total
operating costs
|
$ | 49,240 | $ | 48,239 | $ | 97,396 | $ | 96,088 | ||||||||
Nonoperating
income
|
3 | 160 | 57 | 479 | ||||||||||||
Net
income
|
$ | 14,417 | $ | 15,418 | $ | 32,405 | $ | 31,962 | ||||||||
Net
income attributable to TRG
|
$ | 8,005 | $ | 8,461 | $ | 18,265 | $ | 17,719 | ||||||||
Realized
intercompany profit, net of depreciation on
TRG's basis
adjustments
|
849 | 516 | 1,234 | 979 | ||||||||||||
Depreciation
of TCO's additional basis
|
(486 | ) | (486 | ) | (973 | ) | (973 | ) | ||||||||
Equity
in income of Unconsolidated Joint Ventures
|
$ | 8,368 | $ | 8,491 | $ | 18,526 | $ | 17,725 | ||||||||
Beneficial
interest in Unconsolidated Joint
Ventures'
operations:
|
||||||||||||||||
Revenues less maintenance,
taxes, utilities,
and other operating
expenses
|
$ | 22,536 | $ | 22,644 | $ | 46,484 | $ | 45,758 | ||||||||
Interest
expense
|
(8,369 | ) | (8,457 | ) | (16,653 | ) | (16,719 | ) | ||||||||
Depreciation and
amortization
|
(5,799 | ) | (5,696 | ) | (11,305 | ) | (11,314 | ) | ||||||||
Equity in income of
Unconsolidated Joint
Ventures
|
$ | 8,368 | $ | 8,491 | $ | 18,526 | $ | 17,725 |
At
100%
|
At
Beneficial Interest
|
|||||||||||||||
Consolidated
Subsidiaries
|
Unconsolidated
Joint
Ventures
|
Consolidated
Subsidiaries
|
Unconsolidated
Joint
Ventures
|
|||||||||||||
Debt
as of:
|
||||||||||||||||
June 30, 2009
|
$ | 2,758,938 | $ | 1,098,370 | $ | 2,399,828 | $ | 563,139 | ||||||||
December 31, 2008
|
2,796,821 | 1,103,903 | 2,437,590 | 566,437 | ||||||||||||
Capital
lease obligations as of:
|
||||||||||||||||
June 30, 2009
|
$ | 1,494 | $ | 85 | $ | 1,490 | $ | 43 | ||||||||
December 31, 2008
|
2,474 | 167 | 2,467 | 84 | ||||||||||||
Capitalized
interest:
|
||||||||||||||||
Six months ended June 30,
2009
|
$ | 598 | $ | 23 | $ | 588 | $ | 11 | ||||||||
Six months ended June 30,
2008
|
4,890 | 73 | 4,824 | 60 | ||||||||||||
Interest
expense:
|
||||||||||||||||
Six months ended June 30,
2009
|
$ | 72,706 | $ | 32,068 | $ | 62,898 | $ | 16,653 | ||||||||
Six months ended June 30,
2008
|
72,954 | 32,144 | 63,219 | 16,719 |
Center
|
Loan
Balance
as
of 6/30/09
|
TRG's
Beneficial
Interest
in Loan
Balance
as
of 6/30/09
|
Amount
of
Loan
Balance
Guaranteed
by
TRG as
of 6/30/09
|
%
of Loan
Balance
Guaranteed
by TRG
|
%
of Interest
Guaranteed
by TRG
|
(in
millions of dollars)
|
|||||
Dolphin
Mall
|
124.0
|
124.0
|
124.0
|
100%
|
100%
|
Fairlane
Town Center
|
80.0
|
80.0
|
80.0
|
100%
|
100%
|
Twelve
Oaks Mall
|
-
|
-
|
-
|
100%
|
100%
|
Amount
of Gain or (Loss) Recognized in OCI on Derivative
(Effective Portion)
|
Location
of Gain or (Loss) Reclassified from AOCI into Income
(Effective Portion)
|
Amount
of Gain or
(Loss)
Reclassified
from
AOCI into
Income (Effective
Portion)
|
|||||
Three
Months Ended
June 30
|
Three
Months Ended
June 30
|
||||||
2009
|
2008
|
2009
|
2008
|
||||
Derivatives
in SFAS No. 133 cash
flow hedging
relationships:
|
|||||||
Interest rate contract
–
consolidated
subsidiaries
|
$2,582
|
$8,501
|
Interest
Expense
|
$(2,830)
|
$(976)
|
||
|
|||||||
Interest
rate contracts – UJVs
|
1,167
|
3,843
|
Equity
in Income of UJVs
|
(905)
|
(136)
|
||
Total derivatives in
SFAS
No. 133 cash flow
hedging
relationships
|
$3,749
|
$12,344
|
$(3,735)
|
$(1,112)
|
|||
Realized
losses on settled
cash flow
hedges:
|
|||||||
Interest rate contracts
–
consolidated
subsidiaries
|
Interest
Expense
|
$(222)
|
$(222)
|
||||
Interest rate contract –
UJVs
|
Equity
in Income of UJVs
|
(94)
|
(94)
|
||||
Total realized losses
on
settled cash flow
hedges
|
$(316)
|
$(316)
|
Amount
of Gain or (Loss) Recognized in OCI on Derivative
(Effective Portion)
|
Location
of Gain or (Loss) Reclassified from AOCI into Income
(Effective Portion)
|
Amount
of Gain or
(Loss)
Reclassified
from
AOCI into
Income (Effective
Portion)
|
|||||
Six
Months Ended
June 30
|
Six
Months Ended
June 30
|
||||||
2009
|
2008
|
2009
|
2008
|
||||
Derivatives
in SFAS No. 133 cash
flow hedging
relationships:
|
|||||||
Interest rate contract
–
consolidated
subsidiaries
|
$3,336
|
$(1,809)
|
Interest
Expense
|
$(5,501)
|
$(1,137)
|
||
Interest
rate contracts – UJVs
|
1,130
|
|
2,569
|
Equity
in Income of UJVs
|
(1,774)
|
(148)
|
|
Total derivatives in
SFAS
No. 133 cash flow
hedging
relationships
|
$4,466
|
$ 760
|
$(7,275)
|
$(1,285)
|
|||
Realized
losses on settled
cash flow
hedges:
|
|||||||
Interest rate contracts
–
consolidated
subsidiaries
|
Interest
Expense
|
$(443)
|
$(443)
|
||||
Interest rate contract –
UJVs
|
Equity
in Income of UJVs
|
(188)
|
(188)
|
||||
Total realized losses
on
settled cash flow
hedges
|
$(631)
|
$(631)
|
Liability Derivatives
|
|||||||||
Consolidated
Balance
Sheet Location
|
June 30
2009
|
December 31
2008
|
|||||||
Derivatives
designated as hedging instruments under SFAS
No.
133:
|
|||||||||
Interest Rate Contract
–
consolidated
subsidiaries
|
Accounts
Payable andAccrued Liabilities
|
$ | 13,851 | $ | 17,188 | ||||
Interest Rate Contracts –
UJVs
|
Investment
in UJVs
|
4,844 | 5,974 | ||||||
Total designated as
hedging
instruments under SFAS No.
133
|
$ | 18,695 | $ | 23,162 | |||||
Total
Derivatives
|
$ | 18,695 | $ | 23,162 |
Six Months Ended June 30,
|
||||||||
2009
|
2008
|
|||||||
Net
income attributable to Taubman Centers, Inc. common
shareowners
|
$ | 20,407 | $ | 4,920 | ||||
Transfers (to) from the
noncontrolling interest –
|
||||||||
Increase in Taubman Centers,
Inc.’s paid-in capital for the
acquisition of additional units
of TRG under the Continuing Offer
|
(4 | ) | ||||||
Net transfers (to) from
noncontrolling interests
|
(4 | ) | ||||||
Change from net income
attributable to Taubman Centers, Inc.
|
||||||||
and transfers (to) from
noncontrolling interests
|
$ | 20,403 | $ | 4,920 |
2009
|
||||
Expected
volatility
|
29.61 | % | ||
Expected
dividend yield
|
8.00 | % | ||
Risk-free
interest rate
|
2.83 | % | ||
Weighted
average grant-date fair value
|
$ | 1.35 |
Number
of Options
|
Weighted
Average
Exercise Price
|
Weighted
Average Remaining
Contractual
Term
(in years)
|
Range
of
Exercise
Prices
|
|||||||||||||
Outstanding
at January 1, 2009
|
1,350,477 | $ | 39.73 | 7.2 | $ | 29.38 - $55.90 | ||||||||||
Granted
|
1,439,135 | 14.13 | ||||||||||||||
Outstanding
at June 30, 2009
|
2,789,612 | $ | 26.52 | 8.2 | $ | 13.83 - $55.90 | ||||||||||
Fully
vested options at June 30, 2009
|
721,148 | $ | 40.62 | 6.7 |
2009
|
||||
Expected
volatility
|
42.53 | % | ||
Risk-free
interest rate
|
1.3
|
% | ||
Weighted
average grant-date fair value
|
$ | 15.60 |
Outstanding
at January 1, 2009
|
- | |||
Granted
|
196,943 | |||
Outstanding
at June 30, 2009
|
196,943 |
Number
of Restricted
Stock Units
|
Weighted
Average
Grant Date Fair
Value
|
Outstanding
at January 1, 2009
|
334,878
|
$48.57
|
Granted
|
368,588
|
8.99
|
Redeemed
|
(118,824)
|
40.38
|
Forfeited
|
(14,217)
|
40.17
|
Outstanding
at June 30, 2009
|
570,425
|
24.91
|
Three
Months Ended
June
30
|
Six
Months Ended
June
30
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Net
income attributable to Taubman Centers, Inc. common shareowners
(Numerator):
|
||||||||||||||||
Basic
|
$ | 8,908 | $ | 373 | $ | 20,407 | $ | 4,920 | ||||||||
Impact of additional ownership
in TRG
|
36 | 55 | ||||||||||||||
Diluted
|
$ | 8,944 | $ | 373 | $ | 20,462 | $ | 4,920 | ||||||||
Shares
(Denominator) – basic
|
53,120,769 | 52,859,653 | 53,093,988 | 52,767,430 | ||||||||||||
Effect
of dilutive securities
|
546,099 | 572,321 | 372,575 | 580,802 | ||||||||||||
Shares
(Denominator) – diluted
|
53,666,868 | 53,431,974 | 53,466,563 | 53,348,232 | ||||||||||||
Earnings
per common share –
|
||||||||||||||||
Basic and
diluted
|
$ | 0.17 | $ | 0.01 | $ | 0.38 | $ | 0.09 |
2009
|
2008
|
||||
Carrying Value
|
Fair Value
|
Carrying Value
|
Fair Value
|
||
Notes
payable
|
$2,758,938
|
$2,704,686
|
$2,796,821
|
$2,871,252
|
Fair
Value Measurements at
June 30, 2009 Using
|
||||||||
Description
|
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level
1)
|
Significant
Other
Observable
Inputs(Level 2)
|
Available-for-sale
securities
|
$ | 4,152 | ||||||
Insurance
deposit
|
9,753 | |||||||
Total assets
|
$ | 13,905 | ||||||
Derivative
interest rate contract (Note 5)
|
$ | (13,851 | ) | |||||
Total
liabilities
|
$ | (13,851 | ) |
Three
Months
Ended
June 30
|
Six
Months
Ended
June 30
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Average
rent per square foot:
|
||||||||||||||||
Consolidated
Businesses
|
$ | 43.00 | $ | 44.40 | $ | 44.02 | $ | 44.06 | ||||||||
Unconsolidated Joint
Ventures
|
44.24 | 45.40 | 44.56 | 44.84 | ||||||||||||
Opening
base rent per square foot:
|
||||||||||||||||
Consolidated
Businesses
|
$ | 42.91 | $ | 63.67 | $ | 42.96 | $ | 53.56 | ||||||||
Unconsolidated Joint
Ventures
|
43.71 | 58.66 | 47.64 | 59.05 | ||||||||||||
Square
feet of GLA opened:
|
||||||||||||||||
Consolidated
Businesses
|
133,282 | 133,897 | 536,042 | 471,310 | ||||||||||||
Unconsolidated Joint
Ventures
|
33,879 | 71,860 | 192,645 | 233,269 | ||||||||||||
Closing
base rent per square foot:
|
||||||||||||||||
Consolidated
Businesses
|
$ | 43.23 | $ | 45.84 | $ | 39.48 | $ | 44.30 | ||||||||
Unconsolidated Joint
Ventures
|
40.24 | 41.07 | 45.88 | 45.04 | ||||||||||||
Square
feet of GLA closed:
|
||||||||||||||||
Consolidated
Businesses
|
135,126 | 133,726 | 710,808 | 570,382 | ||||||||||||
Unconsolidated Joint
Ventures
|
35,415 | 62,578 | 226,492 | 303,929 | ||||||||||||
Releasing
spread per square foot:
|
||||||||||||||||
Consolidated
Businesses
|
$ | (0.32 | ) | $ | 17.83 | $ | 3.48 | $ | 9.26 | |||||||
Unconsolidated Joint
Ventures
|
3.47 | 17.59 | 1.76 | 14.01 |
2nd
Quarter
2009
|
1st
Quarter
2009
|
Total
2008
|
4th
Quarter
2008
|
3rd
Quarter
2008
|
2nd
Quarter
2008
|
1st
Quarter
2008
|
(in
thousands of dollars, except occupancy and leased space
data)
|
||||||||||||||||||||||||||||
Mall
tenant sales (1)
|
994,811 | 941,469 | 4,654,885 | 1,342,748 | 1,112,502 | 1,116,027 | 1,083,608 | |||||||||||||||||||||
Revenues
and gains on land
sales
and
other nonoperating income:
|
||||||||||||||||||||||||||||
Consolidated
Businesses
|
159,137 | 157,925 | 676,067 | 190,855 | 164,124 | 161,868 | 159,220 | |||||||||||||||||||||
Unconsolidated Joint
Ventures
|
63,657 | 66,144 | 272,496 | 77,277 | 67,169 | 63,657 | 64,393 | |||||||||||||||||||||
Occupancy
and leased
Space:
|
||||||||||||||||||||||||||||
Ending occupancy
|
88.6 | % | 88.6 | % | 90.3 | % | 90.3 | % | 90.5 | % | 90.1 | % | 89.9 | % | ||||||||||||||
Average occupancy
|
88.7 | 88.8 | 90.3 | 90.7 | 90.4 | 90.0 | 90.0 | |||||||||||||||||||||
Leased space
|
91.1 | 90.5 | 91.8 | 91.8 | 92.4 | 92.7 | 93.1 |
(1)
|
Based
on reports of sales furnished by mall
tenants.
|
2nd
Quarter
2009
|
1st
Quarter
2009
|
Total
2008
|
4th
Quarter
2008
|
3rd
Quarter
2008
|
2nd
Quarter
2008
|
1st
Quarter
2008
|
||||||||||||||||||||||
Consolidated
Businesses:
|
||||||||||||||||||||||||||||
Minimum rents
|
10.8 | % | 12.1 | % | 9.6 | % | 8.8 | % | 9.9 | % | 9.9 | % | 10.2 | % | ||||||||||||||
Percentage
rents
|
0.1 | 0.3 | 0.4 | 0.6 | 0.3 | 0.2 | 0.3 | |||||||||||||||||||||
Expense
recoveries
|
5.8 | 6.0 | 5.4 | 5.4 | 5.4 | 5.3 | 5.3 | |||||||||||||||||||||
Mall tenant occupancy
costs
|
16.7 | % | 18.4 | % | 15.4 | % | 14.8 | % | 15.6 | % | 15.4 | % | 15.8 | % | ||||||||||||||
Unconsolidated
Joint Ventures:
|
||||||||||||||||||||||||||||
Minimum rents
|
10.6 | % | 10.9 | % | 8.9 | % | 7.9 | % | 9.5 | % | 9.3 | % | 9.2 | % | ||||||||||||||
Percentage
rents
|
0.0 | 0.3 | 0.4 | 0.6 | 0.4 | 0.0 | 0.4 | |||||||||||||||||||||
Expense
recoveries
|
5.1 | % | 4.9 | 4.6 | 4.9 | 4.8 | 4.4 | 4.2 | ||||||||||||||||||||
Mall tenant occupancy
costs
|
15.7 | % | 16.1 | % | 13.9 | % | 13.4 | % | 14.7 | % | 13.7 | % | 13.8 | % |
Three
Months Ended
June
30, 2009
|
Three
Months Ended
June
30, 2008
|
|||||||||||||||
CONSOLIDATED
BUSINESSES
|
UNCONSOLIDATED
JOINT
VENTURES
AT
100%(1)
|
CONSOLIDATED
BUSINESSES
|
UNCONSOLIDATED
JOINT
VENTURES
AT
100%(1)
|
|||||||||||||
(in
millions of dollars)
|
||||||||||||||||
REVENUES:
|
||||||||||||||||
Minimum rents
|
84.0 | 38.6 | 87.6 | 38.8 | ||||||||||||
Percentage rents
|
0.6 | 0.1 | 1.3 | 0.5 | ||||||||||||
Expense
recoveries
|
58.5 | 23.8 | 60.4 | 21.7 | ||||||||||||
Management, leasing, and
development services
|
3.2 | 3.9 | ||||||||||||||
Other
|
12.6 | 1.2 | 7.2 | 2.6 | ||||||||||||
Total
revenues
|
158.9 | 63.7 | 160.4 | 63.5 | ||||||||||||
EXPENSES:
|
||||||||||||||||
Maintenance, taxes, and
utilities
|
46.9 | 16.3 | 46.5 | 16.1 | ||||||||||||
Other operating
|
16.4 | 6.0 | 19.7 | 5.6 | ||||||||||||
Restructuring
charge
|
0.2 | |||||||||||||||
Management, leasing, and
development services
|
1.9 | 2.4 | ||||||||||||||
General and
administrative
|
6.8 | 7.9 | ||||||||||||||
Interest expense
|
36.5 | 16.1 | 36.0 | 16.3 | ||||||||||||
Depreciation and amortization
(2)
|
36.1 | 9.9 | 36.2 | 9.8 | ||||||||||||
Total
expenses
|
144.8 | 48.3 | 148.7 | 47.8 | ||||||||||||
Gains
on land sales and other nonoperating income
|
0.2 | 0.0 | 1.5 | 0.2 | ||||||||||||
Impairment
loss on marketable securities
|
(1.7 | ) | ||||||||||||||
12.7 | 15.4 | 13.2 | 15.9 | |||||||||||||
Income
tax expense
|
(0.2 | ) | (0.3 | ) | ||||||||||||
Equity
in income of Unconsolidated Joint Ventures (2)
|
8.4 | 8.5 | ||||||||||||||
Net
income
|
20.9 | 21.4 | ||||||||||||||
Net
income attributable to noncontrolling interests:
|
||||||||||||||||
Noncontrolling share of income
of consolidated
joint ventures
|
(2.0 | ) | (1.1 | ) | ||||||||||||
Distributions in excess of
noncontrolling share of
income of consolidated joint
ventures
|
(4.3 | ) | ||||||||||||||
TRG Series F preferred
distributions
|
(0.6 | ) | (0.6 | ) | ||||||||||||
Noncontrolling share of income
of TRG
|
(5.3 | ) | (4.5 | ) | ||||||||||||
Distributions in excess of
noncontrolling share of
income of TRG
|
(6.5 | ) | ||||||||||||||
Distributions
to participating securities of TRG
|
(0.4 | ) | (0.4 | ) | ||||||||||||
Preferred
stock dividends
|
(3.7 | ) | (3.7 | ) | ||||||||||||
Net
income attributable to Taubman Centers, Inc.
common
shareowners
|
8.9 | 0.4 | ||||||||||||||
SUPPLEMENTAL
INFORMATION:
|
||||||||||||||||
EBITDA – 100%
|
85.2 | 41.4 | 85.3 | 42.0 | ||||||||||||
EBITDA – outside partners'
share
|
(10.1 | ) | (18.9 | ) | (10.0 | ) | (19.3 | ) | ||||||||
Beneficial interest in
EBITDA
|
75.1 | 22.5 | 75.4 | 22.6 | ||||||||||||
Beneficial interest
expense
|
(31.5 | ) | (8.4 | ) | (31.1 | ) | (8.5 | ) | ||||||||
Beneficial income tax
expense
|
(0.2 | ) | (0.3 | ) | ||||||||||||
Non-real estate
depreciation
|
(0.9 | ) | (0.7 | ) | ||||||||||||
Preferred dividends and
distributions
|
(4.3 | ) | (4.3 | ) | ||||||||||||
Funds from Operations
contribution
|
38.2 | 14.2 | 39.0 | 14.2 |
(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)
|
Amortization
of our additional basis in the Operating Partnership included in
depreciation and amortization was $1.2 million in both 2009 and 2008.
Also, amortization of our additional basis included in equity in income of
Unconsolidated Joint Ventures was $0.5 million in both 2009 and
2008.
|
Six
Months Ended
June
30, 2009
|
Six
Months Ended
June
30, 2008
|
|||||||||||||||
CONSOLIDATED
BUSINESSES
|
UNCONSOLIDATED
JOINT
VENTURES
AT
100%(1)
|
CONSOLIDATED
BUSINESSES
|
UNCONSOLIDATED
JOINT
VENTURES
AT
100%(1)
|
|||||||||||||
(in
millions of dollars)
|
||||||||||||||||
REVENUES:
|
||||||||||||||||
Minimum rents
|
171.5 | 77.5 | 174.2 | 77.2 | ||||||||||||
Percentage rents
|
2.7 | 1.2 | 3.9 | 1.9 | ||||||||||||
Expense
recoveries
|
115.3 | 47.6 | 117.8 | 44.1 | ||||||||||||
Management, leasing, and
development services
|
6.7 | 7.6 | ||||||||||||||
Other
|
20.4 | 3.4 | 14.3 | 4.4 | ||||||||||||
Total
revenues
|
316.6 | 129.7 | 317.8 | 127.6 | ||||||||||||
EXPENSES:
|
||||||||||||||||
Maintenance, taxes, and
utilities
|
91.5 | 32.3 | 90.0 | 31.4 | ||||||||||||
Other operating
|
31.3 | 12.4 | 38.0 | 12.1 | ||||||||||||
Restructuring
charge
|
2.6 | |||||||||||||||
Management, leasing, and
development services
|
3.8 | 4.7 | ||||||||||||||
General and
administrative
|
13.7 | 16.3 | ||||||||||||||
Interest expense
|
72.7 | 32.1 | 73.0 | 32.2 | ||||||||||||
Depreciation and amortization
(2)
|
72.4 | 19.3 | 71.5 | 19.5 | ||||||||||||
Total
expenses
|
288.1 | 96.1 | 293.4 | 95.2 | ||||||||||||
Gains
on land sales and other nonoperating income
|
0.4 | 0.1 | 3.3 | 0.5 | ||||||||||||
Impairment
loss on marketable securities
|
(1.7 | ) | ||||||||||||||
27.3 | 33.7 | 27.6 | 32.9 | |||||||||||||
Income
tax expense
|
(0.5 | ) | (0.4 | ) | ||||||||||||
Equity
in income of Unconsolidated Joint Ventures (2)
|
18.5 | 17.7 | ||||||||||||||
Net
income
|
45.4 | 44.9 | ||||||||||||||
Net
income attributable to noncontrolling interests:
|
||||||||||||||||
Noncontrolling share of income
of consolidated
joint ventures
|
(3.7 | ) | (2.3 | ) | ||||||||||||
Distributions in excess of
noncontrolling share of
income of consolidated joint
ventures
|
(6.4 | ) | ||||||||||||||
TRG Series F preferred
distributions
|
(1.2 | ) | (1.2 | ) | ||||||||||||
Noncontrolling share of income
of TRG
|
(11.9 | ) | (10.4 | ) | ||||||||||||
Distributions in excess of
noncontrolling share of
income of TRG
|
(11.6 | ) | ||||||||||||||
Distributions
to participating securities of TRG
|
(0.8 | ) | (0.7 | ) | ||||||||||||
Preferred
stock dividends
|
(7.3 | ) | (7.3 | ) | ||||||||||||
Net
income attributable to Taubman Centers, Inc.
common
shareowners
|
20.4 | 4.9 | ||||||||||||||
SUPPLEMENTAL
INFORMATION:
|
||||||||||||||||
EBITDA – 100%
|
172.4 | 85.1 | 172.1 | 84.5 | ||||||||||||
EBITDA – outside partners'
share
|
(19.6 | ) | (38.6 | ) | (19.5 | ) | (38.7 | ) | ||||||||
Beneficial interest in
EBITDA
|
152.8 | 46.5 | 152.6 | 45.8 | ||||||||||||
Beneficial interest
expense
|
(62.9 | ) | (16.7 | ) | (63.2 | ) | (16.7 | ) | ||||||||
Beneficial income tax
expense
|
(0.5 | ) | (0.4 | ) | ||||||||||||
Non-real estate
depreciation
|
(1.7 | ) | (1.4 | ) | ||||||||||||
Preferred dividends and
distributions
|
(8.5 | ) | (8.5 | ) | ||||||||||||
Funds from Operations
contribution
|
79.1 | 29.8 | 78.9 | 29.0 |
(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)
|
Amortization
of our additional basis in the Operating Partnership included in
depreciation and amortization was $2.5 million in both 2009 and 2008.
Also, amortization of our additional basis included in equity in income of
Unconsolidated Joint Ventures was $1.0 million in both 2009 and
2008.
|
(3)
|
Amounts
in this table may not add due to
rounding.
|
Three Months Ended June 30
|
Six Months Ended June 30
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(in
millions of dollars)
|
||||||||||||||||
Net
income attributable to TCO common shareowners
|
8.9 | 0.4 | 20.4 | 4.9 | ||||||||||||
Add
(less) depreciation and amortization: (1)
|
||||||||||||||||
Consolidated businesses at
100%
|
36.1 | 36.2 | 72.4 | 71.5 | ||||||||||||
Noncontrolling partners in
consolidated joint ventures
|
(3.2 | ) | (3.9 | ) | (6.1 | ) | (7.5 | ) | ||||||||
Share of Unconsolidated Joint
Ventures
|
5.8 | 5.7 | 11.3 | 11.3 | ||||||||||||
Non-real estate
depreciation
|
(0.9 | ) | (0.7 | ) | (1.7 | ) | (1.4 | ) | ||||||||
Add
noncontrolling interests:
|
||||||||||||||||
Noncontrolling share of income
of TRG
|
5.3 | 4.5 | 11.9 | 10.4 | ||||||||||||
Distributions in excess of
noncontrolling share of
income of TRG
|
6.5 | 11.6 | ||||||||||||||
Distributions in excess of
noncontrolling share of
income of consolidated joint
ventures
|
4.3 | 6.4 | ||||||||||||||
Add
distributions to participating securities of TRG
|
0.4 | 0.4 | 0.8 | 0.7 | ||||||||||||
Funds
from Operations
|
52.4 | 53.2 | 109.0 | 108.0 | ||||||||||||
TCO's
average ownership percentage of TRG
|
66.8 | % | 66.6 | % | 66.8 | % | 66.5 | % | ||||||||
Funds
from Operations attributable to TCO
|
35.0 | 35.4 | 72.7 | 71.8 |
(1)
|
Depreciation
includes $3.4 million and $3.5 million of mall tenant allowance
amortization for the three months ended June 30, 2009 and 2008,
respectively, and $6.9 million and $6.7 million for the six
months ended June 30, 2009 and 2008,
respectively.
|
(2)
|
Amounts
in this table may not recalculate due to
rounding.
|
Three Months Ended June 30
|
Six Months Ended June 30
|
|||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||
(in
millions of dollars)
|
||||||||||||||
Net
income
|
20.9
|
21.4
|
45.4 | 44.9 | ||||||||||
Add
(less) depreciation and amortization:
|
||||||||||||||
Consolidated businesses at
100%
|
36.1 | 36.2 | 72.4 | 71.5 | ||||||||||
Noncontrolling partners in
consolidated joint ventures
|
(3.2 | ) | (3.9 | ) | (6.1 | ) | (7.5 | ) | ||||||
Share of Unconsolidated Joint
Ventures
|
5.8 | 5.7 | 11.3 | 11.3 | ||||||||||
Add
(less) interest expense and income tax expense:
|
||||||||||||||
Interest
expense:
|
||||||||||||||
Consolidated businesses at
100%
|
36.5 | 36.0 | 72.7 | 73.0 | ||||||||||
Noncontrolling partners in
consolidated joint
ventures
|
(4.9 | ) | (4.9 | ) | (9.8 | ) | (9.7 | ) | ||||||
Share of Unconsolidated Joint
Ventures
|
8.4 | 8.5 | 16.7 | 16.7 | ||||||||||
Income tax
expense
|
0.2 | 0.3 | 0.5 | 0.4 | ||||||||||
Less
noncontrolling share of income of consolidated
joint ventures
|
(2.0 | ) | (1.1 | ) | (3.7 | ) | (2.3 | ) | ||||||
Beneficial
interest in EBITDA
|
97.6 | 98.0 | 199.3 | 198.3 | ||||||||||
TCO's
average ownership percentage of TRG
|
66.8 | % | 66.6 | % | 66.8 | % | 66.5 | % | ||||||
Beneficial
interest in EBITDA attributable to TCO
|
65.2 | 65.2 | 133.0 | 131.9 |
(1)
|
Amounts
in this table may not recalculate due to
rounding.
|
Amount
|
Interest
Rate
Including
Spread
|
(in
millions of dollars)
|
||||||||
Fixed
rate debt
|
2,377.9 | 5.70 | % (1) | |||||
Floating
rate debt:
|
||||||||
Swapped through December
2010
|
162.8 | 5.01 | % | |||||
Swapped
through March 2011
|
125.0 | 4.22 | % | |||||
Swapped through October
2012
|
15.0 | 5.95 | % | |||||
302.8 | 4.73 | % (1) | ||||||
Floating month to
month
|
282.2 | 1.14 | % (1) | |||||
Total floating rate
debt
|
585.0 | 3.00 | % (1) | |||||
Total
beneficial interest in debt
|
2,963.0 | 5.17 | % (1) | |||||
Amortization
of financing costs (2)
|
0.18 | % | ||||||
Average
all-in rate
|
5.35 | % |
(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.
|
2009
(1)
|
||||||||||||||||
Consolidated
Businesses
|
Beneficial
Interest
in Consolidated Businesses
|
Unconsolidated
Joint Ventures
|
Beneficial
Interest in Unconsolidated
Joint
Ventures
|
|||||||||||||
(in
millions of dollars)
|
||||||||||||||||
Site
improvements(2)
|
1.5 | 1.5 | ||||||||||||||
Existing
Centers:
|
||||||||||||||||
Projects with incremental
GLA
|
9.3 | 4.6 | 0.4 | 0.1 | ||||||||||||
Projects with no incremental
GLA and other
|
1.6 | 1.6 | 1.3 | 0.7 | ||||||||||||
Mall tenant allowances (3)
|
1.5 | 1.6 | 2.0 | 1.3 | ||||||||||||
Asset replacement costs
reimbursable by tenants
|
5.2 | 4.1 | 2.3 | 1.1 | ||||||||||||
Corporate
office improvements, technology, and
equipment
|
0.2 | 0.2 | ||||||||||||||
Additions
to properties
|
19.3 | 13.6 | 5.9 | 3.2 |
(1)
|
Costs
are net of intercompany profits and are computed on an accrual
basis.
|
(2)
|
Includes
costs related to land acquired for future development in North Atlanta,
Georgia.
|
(3)
|
Excludes
initial lease-up costs.
|
(4)
|
Amounts
in this table may not add due to
rounding.
|
(in
millions of dollars)
|
Consolidated
Businesses’ capital spending
|
19.3
|
Differences
between cash and accrual basis
|
5.5
|
Additions
to properties
|
24.8
|
2009
(1)
|
||||||
Consolidated
Businesses
|
Beneficial
Interest
in
Consolidated
Businesses
|
Unconsolidated
Joint Ventures
|
Beneficial
Interest
in
Unconsolidated
Joint
Ventures
|
(in
millions of dollars)
|
|||||||
Site
improvements(2)
|
1.9
|
1.9
|
|||||
Existing
centers(3)
|
37.0
|
29.8
|
12.1
|
6.6
|
|||
Corporate
office improvements, technology,
and equipment
|
1.8
|
1.8
|
|||||
Total
|
40.6
|
33.4
|
12.1
|
6.6
|
(1)
|
Costs
are net of intercompany profits.
|
(2)
|
Includes
costs related to land acquired for future development in North Atlanta,
Georgia.
|
(3)
|
Primarily
includes costs related to mall tenant allowances and asset replacement
costs reimbursable by tenants.
|
(4)
|
Amounts
in this table may not add due to
rounding.
|
NOMINEES
|
TERM
|
VOTES FOR
|
VOTES WITHHELD
|
Graham
T. Allison
|
3
Years
|
51,702,112
|
18,844,550
|
Peter
Karmanos, Jr.
|
3
Years
|
43,526,779
|
27,019,883
|
William
S. Taubman
|
3
Years
|
51,861,177
|
18,685,485
|
70,242,916
|
Votes
were cast for ratification;
|
|
301,989
|
Votes
were cast against ratification; and
|
|
1,756
|
Votes
abstained.
|
TAUBMAN
CENTERS, INC.
|
|
Date:
August 4, 2009
|
By:
/s/ Lisa A. Payne
|
Lisa
A. Payne
|
|
Vice
Chairman, Chief Financial Officer, and Director (Principal Financial
Officer)
|