Chronicle Journal: Finance

Taubman Centers, Inc. Issues Second Quarter Results

Taubman Centers, Inc. (NYSE: TCO) today reported financial results for the second quarter of 2020.

June 30, 2020

Three Months Ended

June 30, 2019

Three Months Ended

June 30, 2020

Six Months Ended

June 30, 2019

Six Months Ended

Net income (loss) attributable to common shareowners, diluted (in thousands)

($34,069)(1)

$6,266

($14,197)(1)

$21,384

Net income (loss) attributable to common shareowners (EPS) per diluted common share

($0.55)(1)

$0.10

($0.23)(1)

$0.35

Funds from Operations (FFO) per diluted common share

$0.29

$0.78

$1.08

$1.71

Growth rate

(62.8)%

(36.8)%

Adjusted FFO (AFFO) per diluted common share

$0.41(2)

$0.94(3)

$1.29(2)

$1.88(3)

Growth rate

(56.4)%

(31.4)%

(1) Net income (loss) and EPS for the three and six-month periods ended June 30, 2020 were lower primarily due to disruption associated with the COVID-19 pandemic, including significant uncollectible tenant revenues. In addition, depreciation expense was higher due to the accelerated amortization of an allowance in connection with the upcoming closing of an anchor store. EPS for the six-month period ended June 30, 2020 included gains totaling approximately $0.28 per diluted common share related to the sale of 50 percent of our interest in CityOn.Xi’an.

(2) AFFO for the three and six-month periods ended June 30, 2020 excludes costs related to the Simon Property Group, Inc. transaction and the fluctuation in the fair value of equity securities. AFFO for the six-month period ended June 30, 2020 also excludes restructuring charges, deferred income tax expense incurred related to the sale of CityOn.Xi’an, an adjustment of the promote fee (net of tax) related to Starfield Hanam recorded last year and costs associated with the Taubman Asia President transition.

(3) AFFO for the three and six-month periods ended June 30, 2019 excludes restructuring charges, costs incurred related to the Blackstone transactions and costs associated with shareholder activism. AFFO for the six-month period ended June 30, 2019 also excludes the fluctuation in the fair value of equity securities.

For the quarter ended June 30, 2020, AFFO per diluted share was $0.41. Disruption related to the COVID-19 pandemic, including widespread center closures for most of the quarter, significantly impacted results.

The company recognized uncollectible tenant revenues of $32.6 million at our beneficial interest, or $0.37 per diluted share of AFFO, in the second quarter, primarily due to elevated tenant bankruptcies and nonpayments during the center closures. These closures negatively impacted sales-based rent and lease cancellation income and resulted in the write-off of straight-line receivables. Together these items reduced AFFO by an additional $0.13 per diluted share. The company’s second quarter 2019 AFFO also included $0.05 per diluted share of insurance proceeds related to the business interruption claim at The Mall of San Juan (San Juan, Puerto Rico).

In aggregate, the above items account for a $0.55 year-over-year variance in second quarter AFFO.

“As we’ve reopened centers, rent collections have steadily improved. We’re optimistic this trend will continue as tenants focus their operations on the best retail assets in each market,” said Robert S. Taubman, chairman, president and chief executive officer of Taubman Centers.

Operating Statistics

Comparable center NOI (comp center NOI) at our beneficial interest, excluding lease cancellation income, was down 25.3 percent in the quarter and down 13.3 percent year-to-date, using constant currency exchange rates. Higher year-over-year uncollectible rental revenues impacted comp center NOI by about 20 percent in the quarter and about 10 percent for the year.

In light of the U.S. center closures, mall tenant sales per square foot, normally a key metric, is not meaningful in the quarter. Trailing 12-month U.S. sales per square foot were $866. In Asia, sales per square foot were up 4.3 percent in the second quarter and were flat year-to-date.

Average rent per square foot for the quarter in U.S. comparable centers was $60.35, down 5.9 percent. Year-to-date average rent per square foot in U.S. comparable centers was $61.14, down 4 percent. Lower sales-based rent, a result of center closures and the overall effects of the pandemic, as well as lower year-over-year rents from Forever 21, collectively impacted average rent per square foot by 4.7 percent in the second quarter and 3.8 percent year-to-date.

Ending occupancy in U.S. comparable centers was 91.5 percent on June 30, 2020, down 0.3 percent compared from June 30, 2019.

Leased space in U.S. comparable centers was 93.8 percent on June 30, 2020, down 1.1 percent from June 30, 2019.

Financing Activity

In late March, the company borrowed $350 million on its $1.1 billion primary revolving line of credit, as a precautionary measure to increase liquidity and financial flexibility due to the uncertainty caused by the COVID-19 pandemic. In late June, the company repaid $100 million, which reduced the outstanding balance on the line of credit to $870 million as of June 30, 2020.

As of June 30, 2020, the company had a consolidated cash balance of $241 million and $119 million available on its lines of credit.

In early August, the company amended its primary $1.1 billion revolving line of credit and unsecured term loan agreements. To ensure appropriate financial flexibility through the pandemic, the amended loan agreement waives compliance with quarterly financial covenants beginning in the third quarter of 2020 through the second quarter of 2021 and replaces them with a minimum liquidity requirement. The company was in full compliance with respect to all covenants as of the second quarter.

Other key features of the amended agreements during the waiver period include:

  • Flexibility to complete planned capital spending, including tenant allowances;
  • Continued ability to distribute taxable income in accordance with our partnership agreement and REIT qualification requirements;
  • Ability to continue dividend payments on Series J Cumulative Preferred Shares (NYSE: TCO PR J) and Series K Cumulative Preferred Shares (NYSE: TCO PR K);

“We’re pleased to have completed this amendment, which provides financial flexibility while our portfolio continues to rebound from the pandemic,” said Simon J. Leopold, executive vice president and chief financial officer. “We greatly appreciate the strong support we have received from our banking partners over the years and particularly during this unprecedented time.”

In August, the company extended the maturity date on the $150 million loan for The Mall at Green Hills (Nashville, Tenn.) for one year to December 1, 2021. On December 1, 2020, the loan will bear interest at a variable rate equal to the greater of LIBOR plus 2.75% or 3.25%.

The construction facilities at Starfield Hanam (Hanam, South Korea) mature in November 2020. The company expects to complete the refinancing at a lower interest rate in the third quarter of 2020. This financing is expected to provide excess proceeds of approximately $35 million at our beneficial interest and combined with the release of additional reserves will allow us to repatriate $58 million at our beneficial interest in the third quarter.

These activities address all the company’s debt maturities occurring in 2020.

Starfield Anseong

On September 25th, Starfield Anseong (Gyeonggi Province, South Korea) will celebrate its grand opening, marking Taubman Asia’s fourth investment and second joint venture with Shinsegae Group. This new one million square foot shopping mall will be the first modern shopping, dining and entertainment destination to serve Anseong, a high-growth city in Greater Seoul.

Starfield Anseong will feature about 280 tenants, including prominent international brands like Zara, Nike, Uniqlo, H&M, Vans, COS, Guess, Adidas, BMW and many others. The center will be anchored by E-Mart Traders, ElectroMart, Toy Kingdom and Hanssem, as well as several successful entertainment concepts, including Aquafield, Sports Monster and Megabox, an upscale cinema.

The center is opening ahead of schedule and in advance of Chuseok, an important shopping period in South Korea. We expect to be over 90 percent occupied and nearly 100 percent leased at opening.

“In our second partnership with Shinsegae we have successfully created an impressive, modern retail and entertainment experience that will serve Anseong’s rapidly growing population,” said Paul Wright, president, Taubman Asia. “We’re delighted with the collection of brands we’ve assembled and the very high-quality nature of the project we’re delivering to this community. It will be a unique experience for our customers to enjoy.”

COVID-19 Update

Most of Taubman’s U.S. operating properties closed on March 19th, in response to the COVID-19 pandemic, and have reopened gradually using enhanced safety protocols designed to ensure the health and safety of both our tenants and the communities we serve. Traffic, tenant sales and rent collections have improved each month as mandates were eased or lifted and in-store shopping has resumed. All centers are fully operating, with the exception of Beverly Center (Los Angeles, Calif.) and Sunvalley Shopping Center (Concord, Calif.), where retail offerings are limited to “curbside pickup” and tenants with exterior access. After an initial reopening, both centers were mandated to close. Excluding those two centers, 90 percent of our U.S. stores have reopened.

The company’s three Asia shopping centers – CityOn.Xi’an (Xi’an, China), CityOn.Zhengzhou (Zhengzhou, Henan, China) and Starfield Hanam (Hanam, South Korea) – have rebounded quickly after experiencing varying levels of disruption. CityOn.Xi’an was closed for about a month and reopened on February 29. CityOn.Zhengzhou was closed for 10 days and reopened on February 27. Starfield Hanam never closed. About 90 percent of tenants had reopened by the end of April. Today nearly all tenants are open following approval for cinemas to reopen in China on July 20th. Total mall tenant sales for the portfolio have recovered, as May and June sales volumes were near 2019 levels.

The company has taken several actions to enhance liquidity due to the disruption caused by the COVID-19 pandemic. U.S. planned capital expenditures for the year have been lowered by $100 million to $110 million, at our beneficial interest, which represents an approximately 50 percent reduction from the original budgeted amount. In Asia, the only material capital spending is related to the completion of Starfield Anseong, which is being funded by a construction loan.

Operating expenses for the year are expected to be reduced by about $10 million, at our beneficial interest. In addition, the company did not declare a second quarter dividend on its common stock, preserving approximately $60 million of additional cash.

These cash preservation initiatives, together with the cash on hand, borrowing capacity under our lines of credit, and proceeds from the Starfield Hanam refinancing are expected to provide sufficient liquidity for the company’s near-term operations.

Investor Conference Call

Due to the pending transaction with Simon Property Group, which is currently the subject of litigation, the company will not host a conference call to review the second quarter 2020 financial results.

About Taubman

Taubman Centers is an S&P MidCap 400 Real Estate Investment Trust engaged in the ownership, management and/or leasing of 26 regional, super-regional and outlet shopping centers in the U.S. and Asia. Taubman’s U.S.-owned properties are the most productive in the publicly held U.S. regional mall industry. Founded in 1950, Taubman is headquartered in Bloomfield Hills, Mich. Taubman Asia, founded in 2005, is headquartered in Hong Kong. www.taubman.com.

For ease of use, references in this press release to “Taubman Centers,”, “we”, “us”, “our”, “company,” “Taubman” or an operating platform mean Taubman Centers, Inc. and/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 or the named operating platform.

This press release contains certain “forward-looking” statements as that term is defined by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are predictive in nature, that depend on or relate to future events or conditions, or that include words such as “believes”, “anticipates”, “expects”, “may”, “will”, “would,” “should”, “estimates”, “could”, “intends”, “plans” or other similar expressions are forward-looking statements.

Forward-looking statements involve significant known and unknown risks and uncertainties that may cause actual results in future periods to differ materially from those projected or contemplated in the forward-looking statements as a result of, but not limited to, the following factors: the COVID-19 pandemic and related challenges, risks and uncertainties which have had, and may continue to have, direct and indirect adverse impacts on the general economy, retail environment, tenants, customers, and employees, as well as center and tenant operations (including the ability to remain open) and operating procedures, occupancy, anchor and mall tenant sales, sales-based rent, rent collection, leasing and negotiated rents, center development and redevelopment activities and the fair value of assets (increasing the likelihood of future impairment charges); future economic performance, including stabilization and recovery from the impact of the COVID-19 pandemic; savings due to cost-cutting measures; payments of dividends and the sufficiency of cash to meet operational needs; changes in market rental rates; unscheduled closings or bankruptcies of tenants; relationships with anchor tenants; trends in the retail industry; challenges with department stores; changes in consumer shopping behavior, including accelerated trends resulting from the COVID-19 pandemic; the liquidity of real estate investments; Taubman’s ability to comply with debt covenants; the availability and terms of financings; changes in market rates of interest and foreign exchange rates for foreign currencies; changes in value of investments in foreign entities; the ability to hedge interest rate and currency risk; risks related to acquiring, developing, expanding, leasing and managing properties; competitors gaining economies of scale through M&A and consolidation activity; changes in value of investments in foreign entities; risks related to joint venture properties; insurance costs and coverage; security breaches that could impact Taubman’s information technology, infrastructure or personal data; costs associated with response to technology breaches; the loss of key management personnel; shareholder activism costs and related diversion of management time; terrorist activities; maintaining Taubman’s status as a real estate investment trust; changes in the laws of states, localities, and foreign jurisdictions that may increase taxes on the company’s operations; changes in global, national, regional and/or local economic and geopolitical climates; the outcome of any litigation between Taubman and Simon Property Group, Inc. (“Simon”) related to the proposed transactions between Taubman and Simon, including the litigation in the State of Michigan Circuit Court for the Sixth Judicial Circuit (Oakland County); the outcome of any shareholder litigation related to the proposed transactions, and insurance coverage for liabilities of Taubman or its directors, if any, thereunder; the inability to complete the proposed transactions due to the failure to satisfy any conditions to completion of the proposed transactions; the risk that a condition to closing of the transaction may not be satisfied; Simon’s and Taubman’s ability to consummate the transaction; the possibility that the anticipated benefits from the transaction will not be fully realized; the ability of Taubman to retain key personnel and maintain relationships with business partners pending the consummation of the transaction; and the impact of legislative, regulatory and competitive changes and other risk factors relating to the industry in which Taubman operates, as detailed from time to time in Taubman’s reports filed with the SEC. There can be no assurance that the transaction will in fact be consummated.

Additional information about these factors and about the material factors or assumptions underlying such forward-looking statements may be found under Item 1.A in Taubman’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as amended, and subsequent reports filed with the Securities and Exchange Commission. Taubman cautions that the foregoing list of important factors that may affect future results is not exhaustive. When relying on forward-looking statements to make decisions with respect to the proposed transaction, shareholders and others should carefully consider the foregoing factors and other uncertainties and potential events. All subsequent written and oral forward-looking statements concerning the proposed transaction or other matters attributable to Taubman or any other person acting on their behalf are expressly qualified in their entirety by the cautionary statements referenced above. The forward-looking statements contained herein speak only as of the date of this communication or the date otherwise specified herein. Taubman does not undertake any obligation to update or revise any forward-looking statements for any reason, even if new information becomes available or other events occur in the future, except as may be required by law.

TAUBMAN CENTERS, INC.

Table 1 - Summary of Results

For the Periods Ended June 30, 2020 and 2019

(in thousands of dollars, except as indicated)

Three Months Ended

Year to Date

2020

2019

2020

2019

Net income (loss)

(41,795

)

16,877

(5,311

)

46,615

Noncontrolling share of income of consolidated joint ventures

(300

)

(832

)

(1,323

)

(2,261

)

Noncontrolling share of (income) loss of TRG

13,811

(3,408

)

4,601

(10,209

)

Distributions to participating securities of TRG

(593

)

(595

)

(1,220

)

Preferred stock dividends

(5,785

)

(5,785

)

(11,569

)

(11,569

)

Net income (loss) attributable to Taubman Centers, Inc. common shareowners

(34,069

)

6,259

(14,197

)

21,356

Net income (loss) per common share - basic

(0.55

)

0.10

(0.23

)

0.35

Net income (loss) per common share - diluted

(0.55

)

0.10

(0.23

)

0.35

Funds from Operations attributable to partnership unitholders and participating securities of TRG (1)

25,963

68,790

95,921

150,083

Funds from Operations attributable to TCO's common shareowners (1)

18,213

48,018

67,090

105,797

Funds from Operations per common share - basic (1)

0.30

0.78

1.09

1.73

Funds from Operations per common share - diluted (1)

0.29

0.78

1.08

1.71

Adjusted Funds from Operations attributable to partnership unitholders and participating securities of TRG (1)

36,558

82,940

114,902

165,512

Adjusted Funds from Operations attributable to TCO's common shareowners (1)

25,653

57,896

80,389

116,584

Adjusted Funds from Operations per common share - basic (1)

0.42

0.95

1.31

1.91

Adjusted Funds from Operations per common share - diluted (1)

0.41

0.94

1.29

1.88

Weighted average number of common shares outstanding - basic

61,590,226

61,171,614

61,419,931

61,147,947

Weighted average number of common shares outstanding - diluted

61,590,226

61,339,925

61,419,931

61,354,428

Common shares outstanding at end of period

61,615,362

61,208,580

Weighted average units - Operating Partnership - basic

87,707,362

87,633,194

87,687,555

86,820,900

Weighted average units - Operating Partnership - diluted

88,783,724

88,672,767

88,773,594

87,898,643

Units outstanding at end of period - Operating Partnership

87,712,025

87,639,296

Ownership percentage of the Operating Partnership at end of period

70.2

%

69.8

%

70.0

%

70.4

%

Number of owned shopping centers at end of period

24

24

Operating Statistics:

NOI at 100% - comparable centers - growth % (1)(2)

(24.0

)%

2.4

%

(13.2

)%

(0.7

)%

NOI at 100% - comparable centers including lease cancellation income at constant
currency - growth % (1)

(23.4

)%

(12.6

)%

NOI at 100% - comparable centers excluding lease cancellation income - growth % (1)(2)

(24.7

)%

0.3

%

(13.8

)%

1.3

%

NOI at 100% - comparable centers excluding lease cancellation income at constant
currency - growth % (1)(2)

(24.1

)%

1.4

%

(13.2

)%

2.2

%

Beneficial interest in NOI - comparable centers including lease cancellation income - growth % (1)

(24.8

)%

(12.7

)%

Beneficial interest in NOI - comparable centers including lease cancellation income
at constant currency - growth % (1)

(24.6

)%

(12.5

)%

Beneficial interest in NOI - comparable centers excluding lease cancellation income - growth % (1)

(25.5

)%

(13.4

)%

Beneficial interest in NOI - comparable centers excluding lease cancellation income
at constant currency - growth % (1)

(25.3

)%

(13.3

)%

Beneficial interest in NOI - total portfolio excluding lease cancellation income - growth % (1)(2)

(30.8

)%

4.6

%

(17.2

)%

5.1

%

Average rent per square foot - U.S. Consolidated Businesses (3)

69.77

71.75

70.03

71.31

Average rent per square foot - U.S. UJVs (3)

50.75

56.41

52.08

55.97

Average rent per square foot - Combined U.S. centers (3)

60.35

64.13

61.14

63.67

Average rent per square foot growth % - U.S. comparable centers (3)

(5.9

)%

(4.0

)%

Ending occupancy - all U.S. centers

89.8

%

91.0

%

Ending occupancy - U.S. comparable centers (3)

91.5

%

91.8

%

Leased space - all U.S. centers

91.9

%

94.0

%

Leased space - U.S. comparable centers (3)

93.8

%

94.9

%

Mall tenant sales - all U.S. centers (4)

415,944

1,574,512

1,751,227

3,205,891

Mall tenant sales - U.S. comparable centers (3)(4)

357,246

1,374,140

1,530,574

2,887,608

12-Months Trailing

Operating Statistics:

2020

2019

Mall tenant sales - all U.S. centers (4)

5,460,510

6,519,819

Mall tenant sales - U.S. comparable centers (3)(4)

4,773,841

5,914,845

Sales per square foot - U.S. comparable centers (3)(4)

866

956

All U.S. centers (4):

Mall tenant occupancy costs as a percentage of tenant sales - U.S. Consolidated Businesses

17.2

%

13.5

%

Mall tenant occupancy costs as a percentage of tenant sales - U.S. UJVs

14.0

%

11.9

%

Mall tenant occupancy costs as a percentage of tenant sales - Combined U.S. centers

15.7

%

12.7

%

U.S. comparable centers (3)(4):

Mall tenant occupancy costs as a percentage of tenant sales - U.S. Consolidated Businesses

16.7

%

13.1

%

Mall tenant occupancy costs as a percentage of tenant sales - U.S. UJVs

13.9

%

11.8

%

Mall tenant occupancy costs as a percentage of tenant sales - Combined U.S. centers

15.4

%

12.5

%

(1)

See 'Use of Non-GAAP Financial Measures' for the definition and use of EBITDA, NOI, and FFO.

(2)

Statistics exclude non-comparable centers as defined in the respective periods and have not been subsequently restated for changes in the pools of comparable centers.

(3)

Statistics exclude non-comparable centers for all periods presented. The June 30, 2019 statistics have been restated to include comparable centers to 2020.

(4)

Based on reports of sales furnished by mall tenants. Sales per square foot exclude spaces greater than or equal to 10,000 square feet.

TAUBMAN CENTERS, INC.

Table 2 - Income Statement

For the Three Months Ended June 30, 2020 and 2019

(in thousands of dollars)

2020

2019

CONSOLIDATED

UNCONSOLIDATED

CONSOLIDATED

UNCONSOLIDATED

BUSINESSES

JOINT VENTURES (1)

BUSINESSES

JOINT VENTURES (1)

REVENUES:

Rental revenues

112,218

110,596

147,006

142,097

Overage rents

749

3,120

1,713

5,164

Management, leasing, and development services

824

892

Other

4,744

6,234

11,993

6,660

Total revenues

118,535

119,950

161,604

153,921

EXPENSES:

Maintenance, taxes, utilities, and promotion

34,511

44,133

39,182

46,179

Other operating

12,792

5,800

21,232

6,853

Management, leasing, and development services

659

491

General and administrative

7,523

8,554

Restructuring charges

84

Simon Property Group, Inc. transaction costs

9,060

Costs associated with shareholder activism

12,000

Interest expense

33,353

34,517

38,010

35,685

Depreciation and amortization

61,838

33,601

44,259

35,622

Total expenses

159,736

118,051

163,812

124,339

Nonoperating income (expense)

(910

)

487

6,627

923

(42,111

)

2,386

4,419

30,505

Income tax benefit (expense)

248

(1,289

)

(2,364

)

(2,461

)

Equity in income (loss) of UJVs

(712

)

14,822

Gains on partial dispositions of ownership interests in UJVs, net of tax

363

Gains on remeasurements of ownership interests in UJVs

417

Net income (loss)

(41,795

)

1,097

16,877

28,044

Net income/loss attributable to noncontrolling interests:

Noncontrolling share of income of consolidated joint ventures

(300

)

(832

)

Noncontrolling share of (income) loss of TRG

13,811

(3,408

)

Distributions to participating securities of TRG

(593

)

Preferred stock dividends

(5,785

)

(5,785

)

Net income (loss) attributable to Taubman Centers, Inc. common shareholders

(34,069

)

6,259

SUPPLEMENTAL INFORMATION:

EBITDA - 100%

53,860

70,504

86,688

101,812

EBITDA - outside partners' share

(4,931

)

(39,531

)

(6,113

)

(49,119

)

Beneficial interest in EBITDA

48,929

30,973

80,575

52,693

Gain on insurance recoveries - The Mall of San Juan

(1,418

)

Gains on partial dispositions of ownership interests in UJVs

(363

)

Gains on remeasurements of ownership interests in UJVs

(417

)

Beneficial interest expense

(30,605

)

(15,945

)

(34,981

)

(18,005

)

Beneficial income tax benefit (expense) - TRG and TCO

248

(104

)

(2,225

)

(912

)

Beneficial income tax expense - TCO

19

Non-real estate depreciation

(987

)

(1,152

)

Preferred dividends and distributions

(5,785

)

(5,785

)

Funds from Operations attributable to partnership unitholders and participating securities of TRG

11,039

14,924

35,014

33,776

STRAIGHTLINE AND PURCHASE ACCOUNTING ADJUSTMENTS:

Net straight-line adjustments to rental revenues, recoveries, and ground rent expense at TRG%

(3,668

)

(441

)

917

437

Country Club Plaza purchase accounting adjustments - rental revenues at TRG%

32

84

The Mall at Green Hills purchase accounting adjustments - rental revenues

8

13

The Gardens Mall purchase accounting adjustments - rental revenues at TRG%

(355

)

(177

)

The Gardens Mall purchase accounting adjustments - interest expense at TRG%

(528

)

(528

)

(1)

With the exception of the Supplemental Information, amounts include 100% of the UJVs. Amounts are net of intercompany transactions. The UJVs are presented at 100% in order to allow for measurement of their performance as a whole, without regard to our ownership interest.

TAUBMAN CENTERS, INC.

Table 3 - Income Statement

For the Six Months Ended June 30, 2020 and 2019

(in thousands of dollars)

2020

2019

CONSOLIDATED

UNCONSOLIDATED

CONSOLIDATED

UNCONSOLIDATED

BUSINESSES

JOINT VENTURES (1)

BUSINESSES

JOINT VENTURES (1)

REVENUES:

Rental revenues

254,876

245,538

291,295

271,653

Overage rents

4,966

8,746

4,854

11,543

Management, leasing, and development services

1,390

2,108

Other

16,762

13,363

23,555

13,366

Total revenues

277,994

267,647

321,812

296,562

EXPENSES:

Maintenance, taxes, utilities, and promotion

73,262

88,966

77,720

87,139

Other operating

30,934

13,301

40,457

12,374

Management, leasing, and development services

1,152

1,022

General and administrative

15,539

17,130

Restructuring charges

362

709

Simon Property Group, Inc. transaction costs

15,445

Costs associated with shareholder activism

16,000

Interest expense

68,202

69,174

74,895

68,183

Depreciation and amortization

113,534

67,863

89,215

69,312

Total expenses

318,430

239,304

317,148

237,008

Nonoperating income (expense)

(362

)

824

15,360

1,324

(40,798

)

29,167

20,024

60,878

Income tax expense

(508

)

(3,228

)

(2,903

)

(4,369

)

Equity in income of UJVs

10,572

29,494

Gains on partial dispositions of ownership interests in UJVs, net of tax

11,277

Gains on remeasurements of ownership interests in UJVs

14,146

Net income (loss)

(5,311

)

25,939

46,615

56,509

Net income/loss attributable to noncontrolling interests:

Noncontrolling share of income of consolidated joint ventures

(1,323

)

(2,261

)

Noncontrolling share of (income) loss of TRG

4,601

(10,209

)

Distributions to participating securities of TRG

(595

)

(1,220

)

Preferred stock dividends

(11,569

)

(11,569

)

Net income (loss) attributable to Taubman Centers, Inc. common shareholders

(14,197

)

21,356

SUPPLEMENTAL INFORMATION:

EBITDA - 100%

167,843

166,204

184,134

198,373

EBITDA - outside partners' share

(10,722

)

(90,810

)

(12,852

)

(96,263

)

Beneficial interest in EBITDA

157,121

75,394

171,282

102,110

Gain on insurance recoveries - The Mall of San Juan

(1,418

)

Gains on partial dispositions of ownership interests in UJVs

(12,759

)

Gains on remeasurements of ownership interests in UJVs

(14,146

)

Beneficial interest expense

(62,658

)

(32,360

)

(68,841

)

(34,781

)

Beneficial income tax expense - TRG and TCO

(508

)

(429

)

(2,714

)

(1,689

)

Beneficial income tax expense - TCO

19

Non-real estate depreciation

(2,184

)

(2,297

)

Preferred dividends and distributions

(11,569

)

(11,569

)

Funds from Operations attributable to partnership unitholders and participating securities of TRG

53,316

42,605

84,443

65,640

STRAIGHTLINE AND PURCHASE ACCOUNTING ADJUSTMENTS:

Net straight-line adjustments to rental revenues, recoveries, and ground rent expense at TRG%

(2,928

)

(554

)

2,715

603

Country Club Plaza purchase accounting adjustments - rental revenues at TRG%

111

196

The Mall at Green Hills purchase accounting adjustments - rental revenues

19

48

The Gardens Mall purchase accounting adjustments - rental revenues at TRG%

(641

)

(177

)

The Gardens Mall purchase accounting adjustments - interest expense at TRG%

(1,056

)

(528

)

(1)

With the exception of the Supplemental Information, amounts include 100% of the UJVs. Amounts are net of intercompany transactions. The UJVs are presented at 100% in order to allow for measurement of their performance as a whole, without regard to our ownership interest.

TAUBMAN CENTERS, INC.
Use of Non-GAAP Financial Measures

In this press release, the terms "we", "us", and "our" refer to Taubman Centers, Inc. (TCO), The Taubman Realty Group Limited Partnership (TRG), and/or TRG's subsidiaries as the context may require.

We use certain non-GAAP operating measures, including EBITDA, beneficial interest in EBITDA, Net Operating Income (NOI), beneficial interest in NOI, and Funds from Operations (FFO). These measures are reconciled to the most comparable GAAP measures. Additional information as to the use of these measures are as follows.

EBITDA represents earnings (loss) before interest, income taxes, and depreciation and amortization of our consolidated and unconsolidated businesses. Beneficial interest in EBITDA represents our share of the earnings (loss) before interest, income taxes, and depreciation and amortization of our consolidated and unconsolidated businesses. We believe EBITDA and beneficial interest in EBITDA provide useful indicators 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.

We use NOI as an alternative measure to evaluate the operating performance of centers, both on individual and stabilized portfolio bases, and in formulating corporate goals and compensation. We define NOI as property-level operating revenues (includes rental income excluding straight-line adjustments of minimum rent) less maintenance, property taxes, utilities, promotion, ground rent (including straight-line adjustments), and other property operating expenses. Beneficial interest in NOI represents our share of NOI (as previously defined) of our consolidated and unconsolidated businesses. Since NOI excludes general and administrative expenses, pre-development charges, interest income and expense, depreciation and amortization, impairment charges, restructuring charges, and gains from peripheral land and property dispositions, it provides a performance measure that, when compared period over period, reflects the revenues and expenses most directly associated with owning and operating rental properties, as well as the impact on their operations from trends in tenant sales, occupancy and rental rates, and operating costs. We also use NOI excluding lease cancellation income as an alternative measure because this income may vary significantly from period to period, which can affect comparability and trend analysis. We generally provide separate projections for expected comparable center NOI growth and lease cancellation income. Comparable centers are generally defined as centers that were owned and open for the entire current and preceding period presented, excluding centers impacted by significant redevelopment activity. In addition, The Mall of San Juan has been excluded from comparable center statistics as a result of Hurricane Maria given that the center's performance has been and is expected to continue to be materially impacted for the foreseeable future. Stamford Town Center has also been excluded from comparable center statistics as the center is currently being marketed for sale. We also use NOI excluding lease cancellation income using constant currency exchange rates as an alternative measure because exchange rates may vary significantly from period to period, which can affect comparability and trend analysis.

The National Association of Real Estate Investment Trusts (NAREIT) defines FFO as net income (loss) (calculated in accordance with Generally Accepted Accounting Principles (GAAP)), excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. We believe 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, we 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. We primarily use FFO in measuring performance and in formulating corporate goals and compensation.

We may also present adjusted versions of NOI, beneficial interest in EBITDA, and FFO when used by management to evaluate operating performance when certain significant items have impacted results that affect comparability with prior or future periods due to the nature or amounts of these items. We believe the disclosure of the adjusted items is similarly useful to investors and others to understand management's view on comparability of such measures between periods. The following table summarizes adjustments to FFO and EBITDA for the three and six months ended June 30, 2020 and 2019:

FFO

EBITDA

Three Months
Ended

Year to Date

Three Months
Ended

Year to Date

2020

2019

2020

2019

2020

2019

2020

2019

Simon Property Group, Inc. transaction costs

Costs associated with shareholder activism

Restructuring charges

Costs related to Blackstone transactions

Taubman Asia President transition costs

Promote fee adjustment - Starfield Hanam

Fluctuation in fair value of equity securities

Gains on partial dispositions of ownership interests in UJVs

Gains on remeasurements of ownership interests in UJVs

Gain on insurance recoveries - The Mall of San Juan

These non-GAAP measures as presented by us are not necessarily comparable to similarly titled measures used by other REITs due to the fact that not all REITs use the same definitions. These measures should not be considered alternatives to net income (loss) or as an indicator of our operating performance. Additionally, these measures do not represent cash flows from operating, investing, or financing activities as defined by GAAP.

We also provide our beneficial interest in certain financial information of our UJVs. This beneficial information is derived as our ownership interest in the investee multiplied by the specific financial statement item being presented. Investors are cautioned that deriving our beneficial interest in this manner may not accurately depict the legal and economic implications of holding a noncontrolling interest in the investee.

TAUBMAN CENTERS, INC.

Table 4 - Reconciliation of Net Income (Loss) Attributable to Taubman Centers, Inc. Common Shareholders to Funds From Operations and Adjusted Funds From Operations

For the Three Months Ended June 30, 2020 and 2019

(in thousands of dollars except as noted; may not add or recalculate due to rounding)

2020

2019

Shares

Per Share

Shares

Per Share

Dollars

/Units

/Unit

Dollars

/Units

/Unit

Net income (loss) attributable to TCO common shareholders - basic

(34,069

)

61,590,226

(0.55

)

6,259

61,171,614

0.10

Add impact of share-based compensation

7

168,311

Net income (loss) attributable to TCO common shareholders - diluted

(34,069

)

61,590,226

(0.55

)

6,266

61,339,925

0.10

Add TCO's additional income tax expense

19

Add depreciation of TCO's additional basis

1,481

0.02

1,617

0.03

Net income (loss) attributable to TCO common shareholders,
excluding step-up depreciation and additional income tax expense

(32,569

)

61,590,226

(0.53

)

7,883

61,339,925

0.13

Add noncontrolling share of income (loss) of TRG

(13,811

)

26,322,236

3,408

26,461,580

Add distributions to participating securities of TRG

871,262

593

871,262

Net income (loss) attributable to partnership unitholders and
participating securities of TRG

(46,380

)

88,783,724

(0.52

)

11,884

88,672,767

0.13

Add (less) depreciation and amortization:

Consolidated businesses at 100%

61,838

0.70

44,259

0.50

Depreciation of TCO's additional basis

(1,481

)

(0.02

)

(1,617

)

(0.02

)

Noncontrolling partners in consolidated joint ventures

(1,883

)

(0.02

)

(2,113

)

(0.02

)

Share of UJVs

15,636

0.18

18,954

0.21

Non-real estate depreciation

(987

)

(0.01

)

(1,152

)

(0.01

)

Less gain on insurance recoveries - The Mall of San Juan

(1,418

)

(0.02

)

Less gains on partial dispositions of ownership interests in UJVs

(363

)

Less gains on remeasurements of ownership interests in UJVs

(417

)

Less impact of share-based compensation

(7

)

Funds from Operations attributable to partnership unitholders
and participating securities of TRG

25,963

88,783,724

0.29

68,790

88,672,767

0.78

TCO's average ownership percentage of TRG - basic (1)

70.2

%

69.8

%

Funds from Operations attributable to TCO's common shareholders, excluding additional income tax expense

18,232

0.29

48,018

0.78

Less TCO's additional income tax expense

(19

)

Funds from Operations attributable to TCO's common shareholders (1)

18,213

0.29

48,018

0.78

Funds from Operations attributable to partnership unitholders
and participating securities of TRG

25,963

88,783,724

0.29

68,790

88,672,767

0.78

Simon Property Group, Inc. transaction costs

9,060

0.10

Costs associated with shareholder activism

12,000

0.14

Restructuring charges

84

Costs related to Blackstone transactions (2)

2,066

0.02

Fluctuation in fair value of equity securities

1,535

0.02

Adjusted Funds from Operations attributable to partnership unitholders
and participating securities of TRG

36,558

88,783,724

0.41

82,940

88,672,767

0.94

TCO's average ownership percentage of TRG - basic (3)

70.2

%

69.8

%

Adjusted Funds from Operations attributable to TCO's common shareowners, excluding additional income tax expense

25,672

0.41

57,896

0.94

Less TCO's additional income tax expense

(19

)

Adjusted Funds from Operations attributable to TCO's common shareowners (3)

25,653

0.41

57,896

0.94

(1)

For the three months ended June 30, 2020, Funds from Operations attributable to TCO's common shareholders was $17,992 using TCO's diluted average ownership percentage of TRG of 69.4%. For the three months ended June 30, 2019, Funds from Operations attributable to TCO's common shareholders was $47,455 using TCO's diluted average ownership percentage of TRG of 69.0%.

(2)

For the three months ended June 30, 2019, includes $0.5 million of disposition costs and $1.6 million of deferred income tax expense related to the Blackstone transactions, which have been recorded within Nonoperating Income (Expense) and Income Tax Benefit (Expense), respectively, in our Statement of Operations and Comprehensive Income (Loss).

(3)

For the three months ended June 30, 2020, Adjusted Funds from Operations attributable to TCO's common shareholders was $25,342 using TCO's diluted average ownership percentage of TRG of 69.4%. For the three months ended June 30, 2019, Adjusted Funds from Operations attributable to TCO's common shareholders was $57,217 using TCO's diluted average ownership percentage of TRG of 69.0%.

TAUBMAN CENTERS, INC.

Table 5 - Reconciliation of Net Income (Loss) Attributable to Taubman Centers, Inc. Common Shareowners to Funds from Operations and Adjusted Funds from Operations

For the Six Months Ended June 30, 2020 and 2019

(in thousands of dollars except as noted; may not add or recalculate due to rounding)

2020

2019

Shares

Per Share

Shares

Per Share

Dollars

/Units

/Unit

Dollars

/Units

/Unit

Net income (loss) attributable to TCO common shareholders - basic

(14,197

)

61,419,931

(0.23

)

21,356

61,147,947

0.35

Add impact of share-based compensation

28

206,481

Net income (loss) attributable to TCO common shareholders - diluted

(14,197

)

61,419,931

(0.23

)

21,384

61,354,428

0.35

Add TCO's additional income tax expense

19

Add depreciation of TCO's additional basis

2,962

0.05

3,234

0.05

Net income (loss) attributable to TCO common shareholders,
excluding step-up depreciation and additional income tax expense

(11,216

)

61,419,931

(0.18

)

24,618

61,354,428

0.40

Add noncontrolling share of income (loss) of TRG

(4,601

)

26,482,401

10,209

25,672,953

Add distributions to participating securities of TRG

595

871,262

1,220

871,262

Net income (loss) attributable to partnership unitholders and
participating securities of TRG

(15,222

)

88,773,594

(0.17

)

36,047

87,898,643

0.41

Add (less) depreciation and amortization:

Consolidated businesses at 100%

113,534

1.28

89,215

1.01

Depreciation of TCO's additional basis

(2,962

)

(0.03

)

(3,234

)

(0.04

)

Noncontrolling partners in consolidated joint ventures

(3,855

)

(0.04

)

(4,348

)

(0.05

)

Share of UJVs

32,033

0.36

36,146

0.41

Non-real estate depreciation

(2,184

)

(0.01

)

(2,297

)

(0.03

)

Less gain on insurance recoveries - The Mall of San Juan

(1,418

)

(0.02

)

Less gains on partial dispositions of ownership interests in UJVs, net of tax

(11,277

)

(0.13

)

Less gains on remeasurements of ownership interests in UJVs

(14,146

)

(0.16

)

Less impact of share-based compensation

(28

)

Funds from Operations attributable to partnership unitholders
and participating securities of TRG

95,921

88,773,594

1.08

150,083

87,898,643

1.71

TCO's average ownership percentage of TRG - basic (1)

70.0

%

70.4

%

Funds from Operations attributable to TCO's common shareholders, excluding additional income tax expense

67,109

1.08

105,797

1.71

Less TCO's additional income tax expense

(19

)

Funds from Operations attributable to TCO's common shareholders (1)

67,090

1.08

105,797

1.71

Funds from Operations attributable to partnership unitholders
and participating securities of TRG

95,921

88,773,594

1.08

150,083

87,898,643

1.71

Simon Property Group, Inc. transaction costs

15,445

0.17

Costs associated with shareholder activism

16,000

0.18

Restructuring charges

362

709

0.01

Costs related to Blackstone transactions (2)

1,113

0.01

2,066

0.02

Taubman Asia President transition costs

244

Promote fee adjustment, net of tax - Starfield Hanam (3)

282

Fluctuation in fair value of equity securities

1,535

0.02

(3,346

)

(0.04

)

Adjusted Funds from Operations attributable to partnership unitholders
and participating securities of TRG

114,902

88,773,594

1.29

165,512

87,898,643

1.88

TCO's average ownership percentage of TRG - basic (4)

70.0

%

70.4

%

Funds from Operations attributable to TCO's common shareholders, excluding additional income tax expense

80,408

1.29

116,584

1.88

Less TCO's additional income tax expense

(19

)

Funds from Operations attributable to TCO's common shareholders (1)

80,389

1.29

116,584

1.88

(1)

For the six months ended June 30, 2020, Funds from Operations attributable to TCO's common shareholders was $66,265 using TCO's diluted average ownership percentage of TRG of 69.2%. For the six months ended June 30, 2019, Funds from Operations attributable to TCO's common shareholders was $104,474 using TCO's diluted average ownership percentage of TRG of 69.6%.

(2)

For the six months ended June 30, 2020, includes $1.1 million of deferred income tax expense related to the Blackstone transactions, which has been recorded within Income Tax Benefit (Expense) in our Statement of Operations and Comprehensive Income (Loss). For the six months ended June 30, 2019, includes $0.5 million of disposition costs and $1.6 million of deferred income tax expense related to the Blackstone transactions, which have been recorded within Nonoperating Income (Expense) and Income Tax Benefit (Expense), respectively, in our Statement of Operations and Comprehensive Income (Loss).

(3)

Includes a reduction of $0.3 million of promote fee income related to the previously recognized promote fee, net of tax, for Starfield Hanam, which have been recorded within Equity in Income of UJVs in our Statement of Operations and Comprehensive Income (Loss).

(4)

For the six months ended June 30, 2020, Adjusted Funds from Operations attributable to TCO's common shareholders was $79,402 using TCO's diluted average ownership percentage of TRG of 69.2%. For the six months ended June 30, 2019, Adjusted Funds from Operations attributable to TCO's common shareholders was $115,133 using TCO's diluted average ownership percentage of TRG of 69.6%.

TAUBMAN CENTERS, INC.

Table 6 - Reconciliation of Net Income to Beneficial Interest in EBITDA and Adjusted Beneficial Interest in EBITDA

For the Periods Ended June 30, 2020 and 2019

(in thousands of dollars; amounts attributable to TCO may not recalculate due to rounding)

Three Months Ended

Year to Date

2020

2019

2020

2019

Net income (loss)

(41,795

)

16,877

(5,311

)

46,615

Add (less) depreciation and amortization:

Consolidated businesses at 100%

61,838

44,259

113,534

89,215

Noncontrolling partners in consolidated joint ventures

(1,883

)

(2,113

)

(3,855

)

(4,348

)

Share of UJVs

15,636

18,954

32,033

36,146

Add (less) interest expense and income tax expense (benefit):

Interest expense:

Consolidated businesses at 100%

33,353

38,010

68,202

74,895

Noncontrolling partners in consolidated joint ventures

(2,748

)

(3,029

)

(5,544

)

(6,054

)

Share of UJVs

15,945

18,005

32,360

34,781

Income tax expense (benefit):

Consolidated businesses at 100%

(248

)

2,364

508

2,903

Noncontrolling partners in consolidated joint ventures

(139

)

(189

)

Share of UJVs

104

912

429

1,689

Share of income tax expense on dispositions of ownership interests

1,482

Less noncontrolling share of income of consolidated joint ventures

(300

)

(832

)

(1,323

)

(2,261

)

Beneficial interest in EBITDA

79,902

133,268

232,515

273,392

TCO's average ownership percentage of TRG - basic

70.2

%

69.8

%

70.0

%

70.4

%

Beneficial interest in EBITDA attributable to TCO

56,109

93,027

162,785

192,620

Beneficial interest in EBITDA

79,902

133,268

232,515

273,392

Add (less):

Simon Property Group, Inc. transaction costs

9,060

15,445

Costs associated with shareowner activism

12,000

16,000

Restructuring charges

84

362

709

Disposition costs related to Blackstone transactions

487

487

Taubman Asia President transition costs

244

Promote fee adjustment - Starfield Hanam

309

Fluctuation in fair value of equity securities

1,535

1,535

(3,346

)

Gains on partial dispositions of ownership interests in UJVs

(363

)

(12,759

)

Gains on remeasurments of ownership interests in UJVs

(417

)

(14,146

)

Gain on insurance recoveries - The Mall of San Juan

(1,418

)

(1,418

)

Adjusted Beneficial interest in EBITDA

89,717

144,421

223,505

285,824

TCO's average ownership percentage of TRG - basic

70.2

%

69.8

%

70.0

%

70.4

%

Adjusted Beneficial interest in EBITDA attributable to TCO

63,001

100,812

156,519

201,314

TAUBMAN CENTERS, INC.

Table 7 - Reconciliation of Net Income (Loss) to Net Operating Income (NOI)

For the Three Months Ended June 30, 2020, 2019, and 2018

(in thousands of dollars)

Three Months Ended

Three Months Ended

2020

2019

Growth %

2019

2018

Growth %

Net income (loss)

(41,795

)

16,877

16,877

30,093

Add (less) depreciation and amortization:

Consolidated businesses at 100%

61,838

44,259

44,259

42,996

Noncontrolling partners in consolidated joint ventures

(1,883

)

(2,113

)

(2,113

)

(1,717

)

Share of UJVs

15,636

18,954

18,954

17,325

Add (less) interest expense and income tax expense (benefit):

Interest expense:

Consolidated businesses at 100%

33,353

38,010

38,010

33,023

Noncontrolling partners in consolidated joint ventures

(2,748

)

(3,029

)

(3,029

)

(3,028

)

Share of UJVs

15,945

18,005

18,005

17,263

Income tax expense (benefit):

Consolidated businesses at 100%

(248

)

2,364

2,364

28

Noncontrolling partners in consolidated joint ventures

(139

)

(139

)

(33

)

Share of UJVs

104

912

912

654

Less noncontrolling share of income of consolidated joint ventures

(300

)

(832

)

(832

)

(1,480

)

Add EBITDA attributable to outside partners:

EBITDA attributable to noncontrolling partners in consolidated joint ventures

4,931

6,113

6,113

6,258

EBITDA attributable to outside partners in UJVs

39,531

49,119

49,119

46,206

EBITDA at 100%

124,364

188,500

188,500

187,588

Add (less) items excluded from shopping center NOI:

General and administrative expenses

7,523

8,554

8,554

8,522

Management, leasing, and development services, net

(165

)

(401

)

(401

)

(418

)

Simon Property Group, Inc. transaction costs

9,060

Restructuring charges

84

84

(77

)

Costs associated with shareholder activism

12,000

12,000

5,000

Straight-line of rents

4,097

(2,277

)

(2,277

)

(1,927

)

Nonoperating (income) expense

423

(7,550

)

(7,550

)

(12,882

)

Gain on partial disposition of ownership interest in UJV

(363

)

Gain on remeasurement of ownership interest in UJV

(417

)

Unallocated operating expenses and other

4,969

8,382

8,382

8,402

NOI at 100% - total portfolio

149,491

207,292

207,292

194,208

Less - NOI of non-comparable centers

(8,655

)

(1)

(22,075

)

(1)

(18,193

)

(2)

(9,567

)

(2)

NOI at 100% - comparable centers

140,836

185,217

(24.0)%

189,099

184,641

2.4%

Foreign currency exchange rate fluctuation adjustment

1,023

NOI at 100% - comparable centers including lease cancellation income at constant currency

141,859

185,217

(23.4)%

NOI at 100% - comparable centers

140,836

185,217

189,099

184,641

Less lease cancellation income - comparable centers

(5,041

)

(4,954

)

(5,946

)

(2,060

)

NOI at 100% - comparable centers excluding lease cancellation income

135,795

180,263

(24.7)%

183,153

182,581

0.3%

Foreign currency exchange rate fluctuation adjustment

1,023

2,017

NOI at 100% - comparable centers excluding lease cancellation income at constant currency

136,818

180,263

(24.1)%

185,170

182,581

1.4%

NOI at 100% - comparable centers

140,836

185,217

Less NOI of comparable centers attributable to noncontrolling partners in consolidated joint ventures and outside partners in UJVs

(42,659

)

(54,713

)

Beneficial interest in NOI - comparable centers including lease cancellation income

98,177

130,504

(24.8)%

Beneficial interest in foreign currency exchange rate fluctuation adjustment

219

Beneficial interest in NOI - comparable centers including lease cancellation income at constant currency

98,396

130,504

(24.6)%

NOI at 100% - comparable centers excluding lease cancellation income

135,795

180,263

Less NOI of comparable centers excluding lease cancellation income attributable to noncontrolling partners in consolidated joint ventures and outside partners in UJVs

(41,511

)

(53,693

)

Beneficial interest in NOI - comparable centers excluding lease cancellation income

94,284

126,570

(25.5)%

Beneficial interest in foreign currency exchange rate fluctuation adjustment

219

Beneficial interest in NOI - comparable centers excluding lease cancellation income at constant currency

94,503

126,570

(25.3)%

NOI at 100% - total portfolio

149,491

207,292

207,292

194,208

Less lease cancellation income - total portfolio

(5,290

)

(7,431

)

(7,431

)

(2,060

)

Less NOI attributable to noncontrolling partners in consolidated joint ventures and outside partners in UJVs excluding lease cancellation income - total portfolio

(43,441

)

(54,341

)

(54,341

)

(52,962

)

Beneficial interest in NOI - total portfolio excluding lease cancellation income

100,760

145,520

(30.8)%

145,520

139,186

4.6%

(1)

Includes Beverly Center, The Gardens Mall, The Mall of San Juan, Stamford Town Center, and Taubman Prestige Outlets Chesterfield.

(2)

Includes Beverly Center, The Gardens Mall, The Mall of San Juan, and Taubman Prestige Outlets Chesterfield.

TAUBMAN CENTERS, INC.

Table 8 - Reconciliation of Net Income (Loss) to Net Operating Income (NOI)

For the Six Months Ended June 30, 2020, 2019, and 2018

(in thousands of dollars)

Year to Date

Year to Date

2020

2019

Growth %

2019

2018

Growth %

Net income (loss)

(5,311

)

46,615

46,615

64,689

Add (less) depreciation and amortization:

Consolidated businesses at 100%

113,534

89,215

89,215

78,018

Noncontrolling partners in consolidated joint ventures

(3,855

)

(4,348

)

(4,348

)

(3,569

)

Share of UJVs

32,033

36,146

36,146

34,380

Add (less) interest expense and income tax expense:

Interest expense:

Consolidated businesses at 100%

68,202

74,895

74,895

63,846

Noncontrolling partners in consolidated joint ventures

(5,544

)

(6,054

)

(6,054

)

(6,039

)

Share of UJVs

32,360

34,781

34,781

34,014

Income tax expense:

Consolidated businesses at 100%

508

2,903

2,903

212

Noncontrolling partners in consolidated joint ventures

(189

)

(189

)

(83

)

Share of UJVs

429

1,689

1,689

1,364

Share of income tax expense on disposition of ownership interests

1,482

Less noncontrolling share of income of consolidated joint ventures

(1,323

)

(2,261

)

(2,261

)

(2,824

)

Add EBITDA attributable to outside partners:

EBITDA attributable to noncontrolling partners in consolidated joint ventures

10,722

12,852

12,852

12,515

EBITDA attributable to outside partners in UJVs

90,810

96,263

96,263

97,233

EBITDA at 100%

334,047

382,507

382,507

373,756

Add (less) items excluded from shopping center NOI:

General and administrative expenses

15,539

17,130

17,130

17,015

Management, leasing, and development services, net

(238

)

(1,086

)

(1,086

)

(910

)

Simon Property Group, Inc. transaction costs

15,445

Restructuring charges

362

709

709

(423

)

Costs associated with shareholder activism

16,000

16,000

8,500

Straight-line of rents

3,068

(5,184

)

(5,184

)

(7,414

)

Nonoperating income, net

(462

)

(16,684

)

(16,684

)

(6,086

)

Gains on partial dispositions of ownership interests in UJVs

(12,759

)

Gains on remeasurements of ownership interests in UJVs

(14,146

)

Unallocated operating expenses and other

9,976

16,122

16,122

16,523

NOI at 100% - total portfolio

350,832

409,514

409,514

400,961

Less - NOI of non-comparable centers

(26,757

)

(1)

(36,341

)

(1)

(29,931

)

(2)

(18,828

)

(2)

NOI at 100% - comparable centers

324,075

373,173

(13.2)%

379,583

382,133

(0.7)%

Foreign currency exchange rate fluctuation adjustment

2,152

NOI at 100% - comparable centers including lease cancellation income at constant currency

326,227

373,173

(12.6)%

NOI at 100% - comparable centers

324,075

373,173

379,583

382,133

Less lease cancellation income - comparable centers

(7,095

)

(5,443

)

(6,435

)

(13,744

)

NOI at 100% - comparable centers excluding lease cancellation income

316,980

367,730

(13.8)%

373,148

368,389

1.3%

Foreign currency exchange rate fluctuation adjustment

2,152

3,370

NOI at 100% - comparable centers excluding lease cancellation income at constant currency

319,132

367,730

(13.2)%

376,518

368,389

2.2%

NOI at 100% - comparable centers

324,075

373,173

Less NOI of comparable centers attributable to noncontrolling partners in consolidated joint ventures and outside partners in UJVs

(96,525

)

(112,604

)

Beneficial interest in NOI - comparable centers including lease cancellation income

227,550

260,569

(12.7)%

Beneficial interest in foreign currency exchange rate fluctuation adjustment

451

Beneficial interest in NOI - comparable centers including lease cancellation income at constant currency

228,001

260,569

(12.5)%

NOI at 100% - comparable centers excluding lease cancellation income

316,980

(1)

367,730

(1)

Less NOI of comparable centers excluding lease cancellation income attributable to noncontrolling partners in consolidated joint ventures and outside partners in UJVs

(95,179

)

(111,499

)

Beneficial interest in NOI - comparable centers excluding lease cancellation income

221,801

256,231

(13.4)%

Beneficial interest in foreign currency exchange rate fluctuation adjustment

451

Beneficial interest in NOI - comparable centers excluding lease cancellation income at constant currency

222,252

256,231

(13.3)%

NOI at 100% - total portfolio

350,832

409,514

409,514

400,961

Less lease cancellation income - total portfolio

(7,742

)

(8,000

)

(8,000

)

(15,845

)

Less NOI attributable to noncontrolling partners in consolidated joint ventures and outside partners in UJVs excluding lease cancellation income - total portfolio

(100,771

)

(108,914

)

(108,914

)

(106,839

)

Beneficial interest in NOI - total portfolio excluding lease cancellation income

242,319

292,600

(17.2)%

292,600

278,277

5.1%

(1)

Includes Beverly Center, The Gardens Mall, The Mall of San Juan, Stamford Town Center, and Taubman Prestige Outlets Chesterfield.

(2)

Includes Beverly Center, The Gardens Mall, The Mall of San Juan, and Taubman Prestige Outlets Chesterfield.

TAUBMAN CENTERS, INC.

Table 9 - Debt Summary

As of June 30, 2020

(in millions of dollars, amounts may not add due to rounding)

Ownership %

Amortizing (A)/

Maturity

100%

Beneficial Interest

Effective Rate

LIBOR Rate

Consolidated Fixed Rate Debt:

(if not 100%)

Interest Only (I)

Date

6/30/2020

6/30/2020

(a)

6/30/2020

(b)

Spread

Cherry Creek Shopping Center

50.00

%

I

6/1/2028

550.0

275.0

3.85

%

City Creek Center

A

8/1/2023

74.5

74.5

4.37

%

Great Lakes Crossing Outlets

A

1/6/2023

190.9

190.9

3.60

%

The Mall at Short Hills

I

10/1/2027

1,000.0

1,000.0

3.48

%

Twelve Oaks Mall

A

3/6/2028

290.0

290.0

4.85

%

2,105.4

1,830.4

3.81

%

3.80

%

Consolidated Floating Rate Debt:

The Mall at Green Hills

I

12/1/2020

(c)

150.0

150.0

1.62

%

(c)

1.45%

(c)

International Market Place

93.50

%

I

8/9/2021

(d)

250.0

233.8

2.32

%

2.15%

(d)

TRG $65M Revolving Credit Facility

I

4/24/2021

0.0

(e)

0.0

1.56

%

(e)

1.40%

TRG $1.1B Revolving Credit Facility

I

2/1/2024

(f)

845.0

845.0

1.55

%

(f)

1.38%

(f)

1,245.0

1,228.8

1.71

%

1.70

%

Consolidated Floating Rate Debt Swapped to Fixed:

TRG $275M Term Loan

I

2/1/2025

275.0

275.0

3.69

%

(g)

1.55%

(g)

TRG $250M Term Loan

I

3/31/2023

250.0

250.0

4.62

%

(h)

1.60%

(h)

TRG $1.1B Revolving Credit Facility (portion swapped)

I

2/1/2024

(f)

25.0

25.0

3.51

%

(f)

1.38%

(f)

U.S. Headquarters

I

3/1/2024

12.0

12.0

3.49

%

(i)

562.0

562.0

4.09

%

4.09

%

Total Consolidated Deferred Financing Costs, Net

(11.4

)

(10.9

)

Total Consolidated

3,900.9

3,610.2

Weighted Rate (excluding deferred financing costs)

3.18

%

3.13

%

Joint Ventures Fixed Rate Debt:

CityOn.Xi'an

25.00

%

A

3/14/2029

152.0

(j)

38.0

6.00

%

CityOn.Zhengzhou

24.50

%

A

3/22/2032

73.5

(k)

18.0

5.60

%

(k)

Country Club Plaza

50.00

%

A

(l)

4/1/2026

313.7

156.9

3.85

%

Fair Oaks Mall

50.00

%

A

5/10/2023

252.7

126.4

5.32

%

The Gardens Mall

48.50

%

I - until
8/15/2021

(m)

7/15/2025

(m)

195.0

105.3

(m)

4.09

%

(m)

International Plaza

50.10

%

A

12/1/2021

294.7

147.6

4.85

%

The Mall at Millenia

50.00

%

I

10/15/2024

350.0

175.0

4.00

%

The Mall at Millenia

50.00

%

I

10/15/2024

100.0

50.0

3.75

%

Starfield Anseong

49.00

%

I

2/28/2025

129.9

(n)

63.7

2.22

%

(n)

Starfield Hanam

17.15

%

I

11/25/2020

257.4

(o)

44.1

2.58

%

(o)

Sunvalley

50.00

%

A

9/1/2022

163.0

81.5

4.44

%

Taubman Land Associates

50.00

%

A

11/1/2022

20.4

10.2

3.84

%

The Mall at University Town Center

50.00

%

I - until
12/1/2022

11/1/2026

280.0

140.0

3.40

%

Waterside Shops

50.00

%

I

(p)

4/15/2026

165.0

82.5

3.86

%

Westfarms

78.94

%

A

7/1/2022

272.0

214.7

4.50

%

3,019.4

1,453.9

4.12

%

4.17

%

Joint Venture Floating Rate Debt Swapped to Fixed:

International Plaza

50.10

%

A

12/1/2021

156.7

78.5

3.58

%

(q)

Starfield Hanam

17.15

%

I

11/8/2020

52.1

(r)

8.9

3.12

%

(r)

208.8

87.5

3.46

%

3.53

%

Total Joint Venture Deferred Financing Costs, Net

(7.7

)

(3.7

)

Total Joint Venture

3,220.5

1,537.7

Weighted Rate (excluding deferred financing costs)

4.08

%

4.13

%

TRG Beneficial Interest Totals:

Fixed Rate Debt

5,124.8

3,284.3

3.99

%

3.96

%

Floating Rate Debt

1,245.0

1,228.8

1.71

%

1.70

%

Floating Rate Debt Swapped to Fixed

770.8

649.5

3.92

%

4.01

%

Total Deferred Financing Costs, Net

(19.1

)

(14.6

)

Total

7,121.5

5,147.9

Weighted Rate (excluding deferred financing costs)

3.59

%

3.43

%

Weighted Average Maturity Fixed Debt

5.8

Weighted Average Maturity Total Debt

5.0

TAUBMAN CENTERS, INC.

Table 9 - Debt Summary (continued)

As of June 30, 2020

(in millions of dollars, amounts may not add due to rounding)

Beneficial Share of Principal Amortization and Debt Maturities

Year

Fixed Rate Debt (s)

Weighted

Rate

Floating Rate Debt

Weighted

Rate

Floating Swapped
to Fixed (t)

Weighted
Rate (t)

Total Deferred
Financing Costs,
Net

Total Debt

Weighted

Rate

2020

60.4

3.09

%

150.0

1.62

%

9.9

3.16

%

(1.9

)

218.4

2.09

%

2021

176.5

4.78

%

233.8

2.32

%

77.6

3.58

%

(3.1

)

484.7

3.41

%

2022

318.1

4.46

%

(2.6

)

315.5

4.46

%

2023

386.5

4.32

%

250.0

4.62

%

(2.1

)

634.4

4.44

%

2024

245.5

4.00

%

845.0

1.55

%

37.0

3.50

%

(1.9

)

1,125.6

2.15

%

2025

174.9

3.49

%

275.0

3.69

%

(1.2

)

448.7

3.61

%

2026

366.1

3.75

%

(1.0

)

365.1

3.75

%

2027

1,014.9

3.51

%

(0.7

)

1,014.2

3.51

%

2028

530.6

4.35

%

530.6

4.35

%

2029

5.2

5.84

%

5.2

5.84

%

2030

2.2

5.60

%

2.2

5.60

%

2031

2.3

5.60

%

2.3

5.60

%

2032

1.1

5.60

%

1.1

5.60

%

3,284.3

3.96

%

1,228.8

1.70

%

649.5

4.01

%

(14.6

)

5,147.9

3.43

%

Unencumbered Assets

Center

Location

Ownership %

Consolidated Businesses:

Beverly Center

Los Angeles, CA

100%

Dolphin Mall

Miami, FL

100%

The Gardens on El Paseo

Palm Desert, CA

100%

The Mall of San Juan

San Juan, PR

95%

Unconsolidated Joint Ventures:

Stamford Town Center

Stamford, CT

50%

(a)

All debt is secured and non-recourse to TRG unless otherwise indicated.

(b)

Includes the impact of interest rate swaps that qualify for hedge accounting, if any, but does not include effect of amortization of debt issuance costs, losses on settlement of derivatives used to hedge the refinancing of certain fixed rate debt or interest rate cap premiums, if any.

(c)

Through December 2020, the LIBOR rate is capped at 3.00%, resulting in a maximum interest rate of 4.45%. In August 2020, we extended the loan to December 2021 and commencing in December 2020, the interest rate will be a variable rate equal to the greater of LIBOR + 2.75% or 3.25%.

(d)

The $250 million loan bears interest at LIBOR + 2.15% and decreases to LIBOR + 1.85% upon achieving certain performance measures. Two, one-year extension options are available. TRG has provided an unconditional guarantee of 100% of the principal balance and all accrued but unpaid interest during the term of the loan.

(e)

Rate floats daily at LIBOR plus spread. Letters of credit totaling $9.8 million are also outstanding on facility. The facility is recourse to TRG and secured by an indirect interest in 40% of The Mall at Short Hills.

(f)

The unsecured facility bears interest at a range of LIBOR + 1.05% to 1.60% with a facility fee ranging from 0.20% to 0.25% based on our total leverage ratio. Two, six-month extension options are available. The LIBOR rate is swapped to a fixed rate of 2.14% until February 2022 on $25 million of the $1.1 billion TRG revolving credit facility. This results in an effective interest rate in the range of 3.19% to 3.74% until February 2022 on $25 million of the credit facility balance. In August 2020, we entered into amendments to waive all of our existing financial covenants related to our primary unsecured revolving line of credit, $275 million unsecured term loan, and $250 million unsecured term loan for the quarter ending September 30, 2020 through and including the quarter ending June 30, 2021. Through the covenant compliance date, our primary unsecured revolving line of credit will bear interest at the maximum total leverage ratio level of LIBOR, subject to a 0.5% floor on the unhedged balance, plus 1.60% with a 0.25% facility fee.

(g)

The $275 million unsecured term loan bears interest at a range of LIBOR + 1.15% to 1.80% based on our total leverage ratio. The LIBOR rate is swapped to a fixed rate of 2.14% until February 2022, which results in an effective interest rate in the range of 3.29% to 3.94% until February 2022. In August 2020, we entered into amendments to waive all of our existing financial covenants related to our primary unsecured revolving line of credit, $275 million unsecured term loan, and $250 million unsecured term loan for the quarter ending September 30, 2020 through and including the quarter ending June 30, 2021. Through the covenant compliance date, our $275 million unsecured term loan will bear interest at the maximum total leverage ratio level of LIBOR plus 1.80%.

(h)

The $250 million unsecured term loan bears interest at a range of LIBOR + 1.25% to 1.90% based on our total leverage ratio. Through the term of the loan, the LIBOR rate is swapped to a fixed rate of 3.02% which results in an effective interest rate in the range of 4.27% to 4.92%. In August 2020, we entered into amendments to waive all of our existing financial covenants related to our primary unsecured revolving line of credit, $275 million unsecured term loan, and $250 million unsecured term loan for the quarter ending September 30, 2020 through and including the quarter ending June 30, 2021. Through the covenant compliance date, our $250 million unsecured term loan will bear interest at the maximum total leverage ratio level of LIBOR plus 1.90%.

(i)

Debt is swapped to an effective rate of 3.49% until maturity.

(j)

1.2 billion Renminbi (RMB) ($169.8 million USD equivalent at June 30, 2020) non-recourse facility.

(k)

1.2 billion RMB ($169.8 million USD equivalent at June 30, 2020) non-recourse facility. The loan bears interest at the 5 year China RMB Loan Prime Rate plus 0.85% and is fixed upon each draw. No draws are allowed after October 16, 2020.

(l)

In May 2020, Country Club Plaza entered into a forbearance agreement which deferred principal amortization for the period June through August 2020. This deferred amortization will be repaid September through December 2020.

(m)

Beneficial interest in debt includes $10.7 million of purchase accounting premium from acquisition of The Gardens Mall which reduces the stated rate on the debt of 6.8% to an average effective rate of 4.2% on total beneficial interest in debt over the remaining term of the loan. The effective rate for the current quarter differs from the average over the remaining term of the loan due to differences in amortization methods. The lender has the option to declare the loan due and payable if the net income available for debt service as defined in the loan agreement is less than a certain amount for calendar years 2020 through 2022. In June 2020, The Gardens Mall entered into a loan modification agreement which deferred interest payments for the period June through September 2020. This deferred interest will be repaid October 2020 through May 2021. In addition, the principal amortization that was originally scheduled to begin in August 2020 has been deferred to August 2021.

(n)

300 billion Korean Won (KRW) ($250.1 million USD equivalent at June 30, 2020) non-recourse construction facility which bears interest at the Korea Financial Investment Association (KOFIA) Five Year AAA Financial (Bank) Yield plus 0.76% and is fixed upon each draw. No draws are allowed after February 26, 2021.

(o)

520 billion KRW ($433.5 million USD equivalent at June 30, 2020) non-recourse construction facility which bears interest at the KOFIA Five Year Industrial Financial Debentures Yield plus 1.06% and was fixed upon each draw. A letter of credit totaling $53.2 million USD is outstanding on this facility as security for the Starfield Hanam USD loan. No draws were allowed after December 31, 2016.

(p)

The Waterside Shops loan is interest-only for the term of the loan. However, if net operating income available for debt service as defined in the loan agreement is less than a certain amount for calendar year 2020, the lender may require the loan to amortize based on a 30-year amortization period beginning May 2021. In May 2020, Waterside Shops entered into a loan modification agreement which deferred interest payments for the period May through September 2020. This deferred interest will be repaid October 2020 through May 2021.

(q)

Debt is swapped to an effective rate of 3.58% until maturity. TRG has provided a several guarantee of 50.1% of the swap obligations.

(r)

$52.1 million USD construction loan which bears interest at three-month LIBOR + 1.60%. The joint venture has entered into a cross-currency interest rate swap to hedge the foreign exchange and interest rate risk associated with this debt since the entity's functional currency is KRW and the loan is in USD. The LIBOR rate plus spread have been swapped until September 2020 to a fixed rate of 3.12%. The foreign exchange rate for the initial exchange, periodic interest payments and final exchange of proceeds has been fixed at 1162 USD-KRW. The loan is secured by a $53.2 million standby letter of credit drawn off the Starfield Hanam KRW construction facility. See footnote (o) above.

(s)

Principal amortization includes amortization of purchase accounting adjustments.

(t)

Represents principal amortization of floating rate debt swapped to fixed rate debt as of June 30, 2020. Note that not all of this debt may be swapped at these rates through maturity. See footnote (f), (g) and (h) above.

TAUBMAN CENTERS, INC.

Table 10 - Owned Centers

As of June 30, 2020

Sq. Ft. of GLA/

Year Opened/

Year

Ownership

Center

Anchors

Mall GLA

Expanded

Acquired

%

Consolidated Businesses:

Beverly Center

Bloomingdale's, Macy's

846,000

1982

100%

Los Angeles, CA

522,000

Cherry Creek Shopping Center

Macy's, Neiman Marcus, Nordstrom

1,037,000

1990/1998/

50%

Denver, CO

634,000

2015

City Creek Center

Macy's, Nordstrom

623,000

2012

100%

Salt Lake City, UT

342,000

Dolphin Mall

Bass Pro Shops Outdoor World, Bloomingdale's Outlet, Burlington

1,434,000

2001/2007/

100%

Miami, FL

Coat Factory, Cobb Theatres, Dave & Buster's, Marshalls, Neiman

707,000

2015

Marcus-Last Call, Polo Ralph Lauren Factory Store. Saks Off 5th

The Gardens on El Paseo

Saks Fifth Avenue

238,000

1998/2010

2011

100%

Palm Desert, CA

187,000

Great Lakes Crossing Outlets

AMC Theatres, Bass Pro Shops Outdoor World, Burlington Coat Factory,

1,355,000

1998

100%

Auburn Hills, MI

Legoland, Planet Fitness, Round 1 Bowling and Amusement,

533,000

(Detroit Metropolitan Area)

Sea Life, Nordstrom Rack

The Mall at Green Hills

Dillard's, Macy's, Nordstrom

984,000

(1)

1955/2011/

2011

100%

Nashville, TN

483,000

2019

International Market Place

Saks Fifth Avenue

340,000

2016

93.5%

Waikiki, Honolulu, HI

261,000

The Mall of San Juan

Nordstrom (2)

627,000

(3)

2015

95%

San Juan, PR

389,000

The Mall at Short Hills

Bloomingdale's, Macy's,

1,344,000

1980/1994/

100%

Short Hills, NJ

Neiman Marcus, Nordstrom

605,000

1995 /2011

Twelve Oaks Mall

JCPenney, Lord & Taylor (4), Macy's,

1,520,000

(5)

1977/1978/

100%

Novi, MI (Detroit Metropolitan Area)

Nordstrom

550,000

2007/2008

Total GLA

10,348,000

Total Mall GLA

5,213,000

TRG % of Total GLA

9,776,000

TRG % of Total Mall GLA

4,860,000

Unconsolidated Joint Ventures:

CityOn.Xi'an

Wangfujing

995,000

2016

25%

Xi'an, China

693,000

CityOn.Zhengzhou

G-Super, Wangfujing

919,000

2017

24.5%

Zhengzhou, China

621,000

Country Club Plaza

(6)

947,000

(7)

1922/1977/

2016

50%

Kansas City, MO

729,000

2000/2015

Fair Oaks Mall

JCPenney, Lord & Taylor (4), Macy's (two locations)

1,558,000

(8)

1980/1987/

50%

Fairfax, VA (Washington, DC Metropolitan Area)

562,000

1988/2000

The Gardens Mall

Bloomingdale's, Macy's, Nordstrom,

1,385,000

1988 / 2005

2019

48.5%

Palm Beach Gardens, FL

Saks Fifth Avenue, Sears

450,000

International Plaza

Dillard's, Life Time Athletic, Neiman Marcus, Nordstrom

1,252,000

2001/2015

50.1%

Tampa, FL

615,000

The Mall at Millenia

Bloomingdale’s, Macy's, Neiman Marcus

1,114,000

2002

50%

Orlando, FL

514,000

Stamford Town Center

Macy's, Saks Off 5th

761,000

1982/2007

50%

Stamford, CT

438,000

Starfield Hanam

PK Market, Shinsegae, Traders

1,709,000

2016

17.15%

Hanam, South Korea

978,000

Sunvalley

JCPenney, Macy's (two locations), Sears

1,324,000

1967/1981

2002

50%

Concord, CA (San Francisco Metropolitan Area)

485,000

The Mall at University Town Center

Dillard's, Macy's, Saks Fifth Avenue

863,000

2014

50%

Sarasota, FL

441,000

Waterside Shops

Nordstrom (2), Saks Fifth Avenue

342,000

1992/2006/

2003

50%

Naples, FL

202,000

2008

Westfarms

JCPenney, Lord & Taylor (4), Macy's (two locations), Nordstrom

1,266,000

1974/1983/

79%

West Hartford, CT

497,000

1997

Total GLA

14,435,000

Total Mall GLA

7,225,000

TRG % of Total GLA

6,521,000

TRG % of Total Mall GLA

3,098,000

Grand Total GLA

24,783,000

Grand Total Mall GLA

12,438,000

TRG % of Total GLA

16,297,000

TRG % of Total Mall GLA

7,958,000

(1)

GLA does not reflect the full total incremental GLA to be added in connection with the redevelopment project at the center.

(2)

In March 2020, Nordstrom closed as a result of the COVID-19 pandemic. Subsequently, Nordstrom reached an agreement to terminate its lease in September 2020.

(3)

GLA includes approximately 100,000 square feet of GLA related to the former Saks Fifth Avenue space, which closed in September 2017 and terminated its lease in August 2019.

(4)

In August 2020, Lord & Taylor filed for bankruptcy and announced plans to close stores at Twelve Oaks Mall, Fair Oaks Mall, and Westfarms following liquidation sales.

(5)

GLA includes approximately 228,000 square feet of GLA related to the former Sears space, which closed in March 2019.

(6)

In 2018, Nordstrom announced plans to relocate to a 116,000-square-foot store at the center opening in 2021.

(7)

GLA includes 218,000 square feet of office property.

(8)

GLA includes approximately 210,000 square feet of GLA related to the former Sears space, which closed in November 2018 and is now partially occupied.

TAUBMAN CENTERS, INC.

Table 11 - Anchors in Owned Portfolio

As of June 30, 2020

Number

Name

of Stores

GLA

% of GLA

Macy's

Bloomingdale's (1)

4

850

Macy's

13

2,803

Macy's Men's Store/Furniture Gallery

3

489

20

4,142

18.8

%

Nordstrom (2)

10

1,446

6.6

%

Hudson's Bay Company

Lord & Taylor (3)

3

392

Saks Fifth Avenue

5

381

Saks Off 5th (4)

1

78

9

851

3.9

%

JCPenney

4

745

3.4

%

Dillard's

3

596

2.7

%

Wangfujing

2

565

2.6

%

Shinsegae

PK Market

1

63

Shinsegae

1

484

2

547

2.5

%

Neiman Marcus (5)

4

402

1.8

%

Sears

2

390

1.8

%

Traders

1

183

0.8

%

Life Time Athletic

1

56

0.3

%

G-Super

1

36

0.2

%

Total

59

9,959

45.3

%

(6)

(1)

Excludes one Bloomingdale's Outlet store at a value center.

(2)

In March 2020, Nordstrom closed their stores at The Mall of San Juan and Waterside Shops as a result of the COVID-19 pandemic. Subsequently, Nordstrom reached an agreement to terminate its leases at these two centers in September 2020.

(3)

In August 2020, Lord & Taylor filed for bankruptcy and announced plans to close its three stores in our portfolio at Twelve Oaks Mall, Fair Oaks Mall, and Westfarms following liquidation sales.

(4)

Excludes one Saks Off 5th store at a value center.

(5)

Excludes one Neiman Marcus-Last Call store at a value center.

(6)

Percentages may not add due to rounding.

TAUBMAN CENTERS, INC.

Table 12 - Major Tenants in Owned Portfolio

As of June 30, 2020

Tenant

Number
of Stores

Square
Footage

% Mall
GLA

Forever 21 (Forever 21, XXI Forever)

16

448,690

3.6

%

H&M

20

422,991

3.4

%

The Gap (Gap, Gap Kids, Baby Gap, Banana Republic, Janie and Jack, Old Navy, Athleta, and others)

56

413,155

3.3

%

Limited Brands (Bath & Body Works/White Barn Candle, Pink, Victoria's Secret, and others)

40

286,865

2.3

%

Inditex (Zara, Zara Home, Massimo Dutti, Bershka, and others)

20

235,063

1.9

%

Urban Outfitters (Anthropologie, Free People, Urban Outfitters)

29

230,486

1.9

%

Williams-Sonoma (Williams-Sonoma, Pottery Barn, Pottery Barn Kids, and others)

27

222,918

1.8

%

Abercrombie & Fitch (Abercrombie & Fitch, Hollister, and others)

30

199,372

1.6

%

Ascena Retail Group (Ann Taylor, Ann Taylor Loft, Justice, and others)

39

193,240

1.6

%

Restoration Hardware

5

179,954

1.4

%

Contacts:

Erik Wright, Taubman, Manager, Investor Relations, 248-258-7390
ewright@taubman.com

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.