– Earnings Impacted by COVID-19 Pandemic
– All U.S. Properties and Nearly 94 Percent of Tenants Have Reopened
– U.S. Total Mall Tenant Sales, Traffic and Tenant Revenue Collections Have Improved Each Month Since May
– Asia Mall Tenant Sales per Square Foot Up
– Starfield Anseong, Taubman Asia’s Fourth Investment, Opened on October 7 Nearly 100 Percent Leased and Over 90 Percent Occupied
BLOOMFIELD HILLS, Mich.–(BUSINESS WIRE)–Taubman Centers, Inc. (NYSE: TCO) today reported financial results for the third quarter of 2020.
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|
September 30, 2020 |
September 30, 2019 |
September 30, 2020 |
September 30, 2019 |
|
Net income (loss) attributable to common shareowners, diluted (in thousands) |
($30,072)(1) |
$216,873 |
($44,269)(1) |
$239,223 |
|
Net income (loss) attributable to common shareowners (EPS) per diluted common share |
($0.49)(1) |
$3.48 |
($0.72)(1) |
$3.84 |
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Funds from Operations (FFO) per diluted common share |
$0.39 |
$0.88 |
$1.47 |
$2.59 |
|
Growth rate |
(55.7)% |
|
(43.2)% |
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Adjusted FFO (AFFO) per diluted common share |
$0.60(2) |
$0.86 (3) |
$1.90(2) |
$2.74(3) |
|
Growth rate |
(30.2)% |
|
(30.7)% |
|
|
(1) Net income (loss) and EPS for the three and nine-month periods ended September 30, 2020 were lower primarily due to the sale of 50 percent of our interest in Starfield Hanam (Hanam, South Korea) and a litigation settlement related to The Mall of San Juan that resulted in the recognition of gains totaling approximately $3.30 per diluted common share in the third quarter of 2019, as well as the disruption associated with the COVID-19 pandemic in 2020. EPS for the three-month period ended September 30, 2020 included an impairment charge related to Stamford Town Center of $0.23 per diluted common share, partially offset by a gain on the transfer of building and improvements of an anchor space of $0.06 per diluted common share. EPS for the nine-month period ended September 30, 2020 also included gains totaling approximately $0.28 per diluted common share related to the sale of 50 percent of our interest in CityOn.Xi’an (Xi’an, China), as well as accelerated amortization of an allowance related to the closing of an anchor space at a U.S. property.
(2) AFFO for the three and nine-month periods ended September 30, 2020 excluded costs related to the Simon Property Group, Inc. transaction, restructuring charges, fluctuations in the fair value of equity securities and adjustments to the previously recognized promote fee (net of tax) related to Starfield Hanam recorded last year. AFFO for the nine-month period ended September 30, 2020 also excluded deferred income tax expense incurred related to the sale of CityOn.Xi’an and costs associated with the Taubman Asia President transition. (3) AFFO for the three and nine-month periods ended September 30, 2019 excluded restructuring charges, a promote fee (net of tax) related to Starfield Hanam and costs associated with shareholder activism. AFFO for the nine-month period ended September 30, 2019 also excluded pre-closing costs related to the sale of our interest in three Taubman Asia properties to Blackstone and the fluctuation in the fair value of equity securities. |
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For the quarter ended September 30, 2020, AFFO per diluted share was $0.60. Disruption related to the COVID-19 pandemic, including mall closures, tenant bankruptcies and nonpayments, significantly impacted third quarter results. Accordingly, the company recognized uncollectible tenant revenues of $28 million at our beneficial interest, or $0.32 per diluted share of AFFO during the quarter. In addition, the company received lease termination income of $19.3 million, at our beneficial interest, or $0.22 per diluted share of AFFO, in the third quarter.
“Operations across our portfolio are steadily improving, despite the continuing impact of the pandemic,” said the company’s Chairman, President and CEO Robert S. Taubman. “All of our properties are open and operating and nearly 94 percent of our U.S. tenants have reopened. Since May, traffic, sales and collections have consistently improved.”
Operating Statistics
Comparable center NOI (comp center NOI) at our beneficial interest, including lease cancellation income, was down 18.3 percent in the third quarter and 14.4 percent year-to-date, using constant currency exchange rates. Excluding lease cancellation income, comp center NOI was down 29 percent in the quarter and down 18.5 percent year-to-date, using constant currency exchange rates. Higher year-over-year uncollectible tenant revenues impacted comp center NOI excluding lease cancellation income by 16.5 percent in the quarter and 12.6 percent year-to-date.
In the U.S., total mall tenant sales have improved every month since May. In addition, tenant sales per square foot in comparable centers improved throughout the third quarter. Excluding Apple and Tesla (two tenants that create volatility in quarterly reporting) sales per square foot were down 16.4 percent in the third quarter, sequentially improving each month, with September down 5.7 percent. In Asia, sales per square foot were up modestly in the third quarter and year-to-date.
Average rent per square foot for the quarter in U.S. comparable centers was $59.28, down 6.4 percent. Year-to-date average rent per square foot in U.S. comparable centers was $60.52, down 4.7 percent. Lower sales-based rents and rent relief (including abatements) related to the COVID-19 pandemic together impacted average rent per square foot by 5.6 percent in the third quarter and 2.4 percent year-to-date.
Ending occupancy in U.S. comparable centers was 89.9 percent on September 30, 2020, down 2.7 percent from September 30, 2019 largely due to tenant bankruptcies related to the COVID-19 pandemic.
Leased space in U.S. comparable centers was 92.6 percent on September 30, 2020, down 3 percent from September 30, 2019.
Financing and Portfolio Activity
The joint venture that owns Starfield Hanam (17.15 percent owned by the company) has fully refinanced its two construction loans that together had a balance of approximately $319 million U.S. dollars (using September 30 exchange rates) and a weighted average effective rate of 2.67 percent.
In September, the joint venture first repaid the $52 million U.S. dollar construction loan using the property’s available cash.
In October, the joint venture completed two new loans that replace the original construction facilities. The primary new loan is a five-year, non-recourse Korean Won denominated facility with a capacity of approximately $535 million U.S. dollars at current exchange rates. The facility is fully drawn and bears interest at fixed rate of 2.38 percent. This loan is interest-only, until the final year when principal payments are required. The additional facility is a one-year, interest-only, Korean Won denominated loan with a capacity of approximately $9 million U.S. dollars at current exchange rates. This facility is expected to be fully drawn in the fourth quarter and the interest rate will be fixed at that time. These financings have resulted in excess proceeds of approximately $34 million, at our beneficial interest. Together with additional reserves at the property this refinancing is expected to result in the repatriation of $58 million later this year.
In October, the company also completed the sale of Stamford Town Center (Stamford, Conn.), a 50 percent owned joint venture. As a result of the sale, an impairment charge of $19.8 million at our beneficial interest was recognized during the third quarter.
Starfield Anseong Grand Opening
On October 7, the company opened Starfield Anseong (Gyeonggi Province, South Korea) to tremendous enthusiasm from the local community. The one million square foot, modern shopping, entertainment and dining destination, featuring 280 tenants, opened over 90 percent occupied and nearly 100 percent leased. We expect to have 99 percent occupancy by year-end.
Starfield Anseong’s collection of prominent international brands includes Zara, Nike, Uniqlo, H&M, Vans, COS, Guess, Adidas, BMW, Patagonia, Camper, Polo Ralph Lauren, Lacoste, West Elm and Under Armour. The mall is anchored by Shinsegae Factory Store, E-Mart, Toy Kingdom and successful entertainment concepts, including Aquafield, Sports Monster and Megabox, an upscale cinema. Starfield Anseong will serve as the primary shopping destination for Anseong, Asan, Jincheon and Pyeongtaek, four high-growth cities in Greater Seoul.
Early sales and traffic results have been very strong. Starfield Anseong welcomed over one million customers and generated tenant sales of nearly $32 million U.S. dollars within the first ten days following its grand opening. Starfield Anseong is Taubman Asia’s fourth successful development project and its second joint venture with Shinsegae Property.
See Taubman Asia and Shinsegae Group Celebrate the Opening of Starfield Anseong in South Korea Today – Oct. 7, 2020.
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 with enhanced safety protocols. All U.S. properties and nearly 85 percent of stores had reopened by June 30, 2020. Three of our properties were closed intermittently in the third quarter as a result of state regulations but are once again open. Nearly 94 percent of our tenants have now reopened with traffic, sales, and tenant collections improving each month since May.
In Asia, CityOn.Xi’an, CityOn.Zhengzhou (Zhengzhou, Henan, China) and Starfield Hanam experienced varying levels of disruption from the pandemic but have largely recovered. In the third quarter NOI at our beneficial interest was essentially flat compared to last year and tenant sales per square foot were up modestly. Over 98 percent of tenants are open throughout the three properties.
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 approximately $135 million, at our beneficial interest, which represents a reduction of nearly 65 percent from the original budget. In Asia, the only material capital spending this year has been related to the completion of Starfield Anseong, which has been funded by the construction loan.
Operating expenses for the year are expected to be reduced by about $17 million at our beneficial interest. In addition, the company did not pay a dividend on its common stock in the second or third quarter, preserving approximately $120 million of cash.
These initiatives, coupled with improving operations, have significantly enhanced the company’s liquidity position. Total liquidity, which includes cash on hand and borrowing capacity under our lines of credit, was $455 million at the end of the third quarter, up about $90 million from June 30, 2020.
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 third 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 malls in the U.S. and Asia. Taubman’s U.S.-owned properties are the most productive in the publicly held U.S. 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, mall environment, tenants, customers, and employees, as well as mall 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, mall 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 mall 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; 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. |
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Table 1 – Summary of Results |
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For the Periods Ended September 30, 2020 and 2019 |
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|
(in thousands of dollars, except as indicated) |
Three Months Ended |
|
Year to Date |
||||||||
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|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||
|
Net income (loss) |
(36,648 |
) |
|
316,390 |
|
|
(41,959 |
) |
|
363,005 |
|
|
Noncontrolling share of income (loss) of consolidated joint ventures |
308 |
|
|
(958 |
) |
|
(1,015 |
) |
|
(3,219 |
) |
|
Noncontrolling share of (income) loss of TRG |
12,052 |
|
|
(93,690 |
) |
|
16,653 |
|
|
(103,899 |
) |
|
Distributions to participating securities of TRG |
|
|
(597 |
) |
|
(595 |
) |
|
(1,817 |
) |
|
|
Preferred stock dividends |
(5,784 |
) |
|
(5,784 |
) |
|
(17,353 |
) |
|
(17,353 |
) |
|
Net income (loss) attributable to Taubman Centers, Inc. common shareholders |
(30,072 |
) |
|
215,361 |
|
|
(44,269 |
) |
|
236,717 |
|
|
Net income (loss) per common share – basic |
(0.49 |
) |
|
3.52 |
|
|
(0.72 |
) |
|
3.87 |
|
|
Net income (loss) per common share – diluted |
(0.49 |
) |
|
3.48 |
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|
(0.72 |
) |
|
3.84 |
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|
Funds from Operations attributable to partnership unitholders and participating securities of TRG (1) |
34,458 |
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|
78,387 |
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|
130,379 |
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|
228,470 |
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Funds from Operations attributable to TCO’s common shareholders (1) |
24,226 |
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|
54,747 |
|
|
91,316 |
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|
160,544 |
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|
Funds from Operations per common share – basic (1) |
0.39 |
|
|
0.89 |
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|
1.48 |
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|
2.62 |
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Funds from Operations per common share – diluted (1) |
0.39 |
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|
0.88 |
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|
1.47 |
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|
2.59 |
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Adjusted Funds from Operations attributable to partnership unitholders and participating securities of TRG (1) |
53,640 |
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|
75,977 |
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|
168,542 |
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|
241,489 |
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Adjusted Funds from Operations attributable to TCO’s common shareholders (1) |
37,719 |
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|
53,064 |
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|
118,108 |
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|
169,648 |
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Adjusted Funds from Operations per common share – basic (1) |
0.61 |
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|
0.87 |
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|
1.92 |
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|
2.77 |
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Adjusted Funds from Operations per common share – diluted (1) |
0.60 |
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|
0.86 |
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|
1.90 |
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|
2.74 |
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Weighted average number of common shares outstanding – basic |
61,696,565 |
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|
61,211,249 |
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|
61,512,816 |
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|
61,169,279 |
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Weighted average number of common shares outstanding – diluted |
61,696,565 |
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|
62,245,414 |
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|
61,512,816 |
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|
62,232,496 |
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Common shares outstanding at end of period |
61,723,103 |
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61,213,170 |
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Weighted average units – Operating Partnership – basic |
87,713,880 |
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|
87,641,965 |
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|
87,696,394 |
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|
87,097,595 |
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Weighted average units – Operating Partnership – diluted |
88,874,258 |
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|
88,676,130 |
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|
88,807,212 |
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|
88,160,812 |
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Units outstanding at end of period – Operating Partnership |
87,719,766 |
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|
87,643,886 |
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Ownership percentage of the Operating Partnership at end of period |
70.4 |
% |
|
69.8 |
% |
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Number of owned shopping centers at end of period |
24 |
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24 |
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Operating Statistics: |
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NOI at 100% – comparable centers – growth % (1)(2) |
(16.9 |
)% |
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(2.5 |
)% |
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(14.4 |
)% |
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(1.3 |
)% |
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NOI at 100% – comparable centers including lease cancellation income at constant |
(16.9 |
)% |
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(14.0 |
)% |
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NOI at 100% – comparable centers excluding lease cancellation income – growth % (1)(2) |
(27.2 |
)% |
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(1.5 |
)% |
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(18.3 |
)% |
|
0.3 |
% |
|
NOI at 100% – comparable centers excluding lease cancellation income at constant |
(27.2 |
)% |
|
(0.9 |
)% |
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(17.9 |
)% |
|
1.1 |
% |
|
Beneficial interest in NOI – comparable centers including lease cancellation income – growth % (1) |
(18.3 |
)% |
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(14.5 |
)% |
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Beneficial interest in NOI – comparable centers including lease cancellation income |
(18.3 |
)% |
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(14.4 |
)% |
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Beneficial interest in NOI – comparable centers excluding lease cancellation income – growth % (1) |
(29.0 |
)% |
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(18.7 |
)% |
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Beneficial interest in NOI – comparable centers excluding lease cancellation income |
(29.0 |
)% |
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|
(18.5 |
)% |
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Beneficial interest in NOI – total portfolio excluding lease cancellation income – growth % (1)(2) |
(33.9 |
)% |
|
0.7 |
% |
|
(22.8 |
)% |
|
3.6 |
% |
|
Average rent per square foot – U.S. Consolidated Businesses (3) |
65.24 |
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|
70.52 |
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|
68.45 |
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|
70.97 |
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Average rent per square foot – U.S. UJVs (3) |
53.23 |
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|
56.03 |
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|
52.44 |
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|
55.91 |
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Average rent per square foot – Combined U.S. centers (3) |
59.28 |
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|
63.36 |
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|
60.52 |
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|
63.48 |
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Average rent per square foot growth % – U.S. comparable centers (3) |
(6.4 |
)% |
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(4.7 |
)% |
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Ending occupancy – all U.S. centers |
88.5 |
% |
|
91.7 |
% |
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Ending occupancy – U.S. comparable centers (3) |
89.9 |
% |
|
92.6 |
% |
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Leased space – all U.S. centers |
91.1 |
% |
|
94.7 |
% |
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Leased space – U.S. comparable centers (3) |
92.6 |
% |
|
95.6 |
% |
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Mall tenant sales – all U.S. centers (4) |
938,843 |
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1,570,828 |
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2,690,070 |
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4,776,719 |
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Mall tenant sales – U.S. comparable centers (3)(4) |
836,342 |
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1,376,324 |
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2,366,916 |
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4,263,932 |
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12-Months Trailing |
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Operating Statistics: |
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2020 |
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2019 |
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Mall tenant sales – all U.S. centers (4) |
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4,828,525 |
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6,741,322 |
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Mall tenant sales – U.S. comparable centers (3)(4) |
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4,233,859 |
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6,063,124 |
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Sales per square foot – U.S. comparable centers (3)(4) |
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|
790 |
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980 |
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All U.S. centers (4): |
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Mall tenant occupancy costs as a percentage of tenant sales – U.S. Consolidated Businesses |
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19.0 |
% |
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13.2 |
% |
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Mall tenant occupancy costs as a percentage of tenant sales – U.S. UJVs |
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15.6 |
% |
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11.7 |
% |
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Mall tenant occupancy costs as a percentage of tenant sales – Combined U.S. centers |
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17.3 |
% |
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12.5 |
% |
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U.S. comparable centers (3)(4): |
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Mall tenant occupancy costs as a percentage of tenant sales – U.S. Consolidated Businesses |
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18.4 |
% |
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12.8 |
% |
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Mall tenant occupancy costs as a percentage of tenant sales – U.S. UJVs |
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15.4 |
% |
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11.5 |
% |
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Mall tenant occupancy costs as a percentage of tenant sales – Combined U.S. centers |
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17.0 |
% |
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12.2 |
% |
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(1) See ‘Use of Non-GAAP Financial Measures’ for the definition and use of EBITDA, NOI, and FFO. |
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(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. |
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(3) Statistics exclude non-comparable centers for all periods presented. The September 30, 2019 statistics have been restated to include comparable centers to 2020. |
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(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. |
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TAUBMAN CENTERS, INC. |
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Table 2 – Income Statement |
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For the Three Months Ended September 30, 2020 and 2019 |
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(in thousands of dollars) |
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2020 |
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2019 |
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CONSOLIDATED |
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UNCONSOLIDATED |
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CONSOLIDATED |
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UNCONSOLIDATED |
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BUSINESSES |
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JOINT VENTURES (1) |
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BUSINESSES |
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JOINT VENTURES (1) |
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REVENUES: |
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|
||||
|
Rental revenues |
|
122,817 |
|
|
125,744 |
|
|
141,213 |
|
|
138,960 |
|
|
Overage rents |
|
540 |
|
|
3,219 |
|
|
3,865 |
|
|
6,736 |
|
|
Management, leasing, and development services |
|
440 |
|
|
|
|
1,927 |
|
|
|
||
|
Other |
|
7,201 |
|
|
4,334 |
|
|
15,501 |
|
|
7,413 |
|
|
Total revenues |
|
130,998 |
|
|
133,297 |
|
|
162,506 |
|
|
153,109 |
|
|
|
|
|
|
|
|
|
|
|
||||
|
EXPENSES: |
|
|
|
|
|
|
|
|
||||
|
Maintenance, taxes, utilities, and promotion |
|
37,053 |
|
|
44,558 |
|
|
40,786 |
|
|
45,274 |
|
|
Other operating |
|
13,289 |
|
|
5,147 |
|
|
19,753 |
|
|
6,412 |
|
|
Management, leasing, and development services |
|
435 |
|
|
|
|
1,895 |
|
|
|
||
|
General and administrative |
|
7,048 |
|
|
|
|
9,632 |
|
|
|
||
|
Restructuring charges |
|
2,395 |
|
|
|
|
876 |
|
|
|
||
|
Simon Property Group, Inc. transaction costs |
|
17,060 |
|
|
|
|
|
|
|
|||
|
Impairment charge |
|
|
|
39,668 |
|
|
|
|
|
|||
|
Costs associated with shareholder activism |
|
|
|
|
|
675 |
|
|
|
|||
|
Interest expense |
|
33,052 |
|
|
34,927 |
|
|
37,695 |
|
|
35,398 |
|
|
Depreciation and amortization |
|
49,235 |
|
|
34,983 |
|
|
47,849 |
|
|
33,865 |
|
|
Total expenses |
|
159,567 |
|
|
159,283 |
|
|
159,161 |
|
|
120,949 |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Nonoperating income, net |
|
1,694 |
|
|
11,804 |
|
|
11,108 |
|
|
5,657 |
|
|
|
|
(26,875 |
) |
|
(14,182 |
) |
|
14,453 |
|
|
37,817 |
|
|
Income tax expense |
|
(37 |
) |
|
(3,425 |
) |
|
(2,021 |
) |
|
(2,266 |
) |
|
Equity in income (loss) of UJVs |
|
(9,736 |
) |
|
|
|
20,252 |
|
|
|
||
|
Gains on partial dispositions of ownership interests in UJVs, net of tax |
|
|
|
|
|
138,696 |
|
|
|
|||
|
Gains on remeasurements of ownership interests in UJVs |
|
|
|
|
|
145,010 |
|
|
|
|||
|
Net income (loss) |
|
(36,648 |
) |
|
(17,607 |
) |
|
316,390 |
|
|
35,551 |
|
|
Net income/loss attributable to noncontrolling interests: |
|
|
|
|
|
|
|
|
||||
|
Noncontrolling share of income (loss) of consolidated joint ventures |
|
308 |
|
|
|
|
(958 |
) |
|
|
||
|
Noncontrolling share of (income) loss of TRG |
|
12,052 |
|
|
|
|
(93,690 |
) |
|
|
||
|
Distributions to participating securities of TRG |
|
|
|
|
|
(597 |
) |
|
|
|||
|
Preferred stock dividends |
|
(5,784 |
) |
|
|
|
(5,784 |
) |
|
|
||
|
Net income (loss) attributable to Taubman Centers, Inc. common shareholders |
|
(30,072 |
) |
|
|
|
215,361 |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||||
|
SUPPLEMENTAL INFORMATION: |
|
|
|
|
|
|
|
|
||||
|
EBITDA – 100% |
|
55,412 |
|
|
55,728 |
|
|
383,703 |
|
|
107,080 |
|
|
EBITDA – outside partners’ share |
|
(4,404 |
) |
|
(32,180 |
) |
|
(5,623 |
) |
|
(50,377 |
) |
|
Beneficial interest in EBITDA |
|
51,008 |
|
|
23,548 |
|
|
378,080 |
|
|
56,703 |
|
|
Gain on transfer of building and improvements |
|
|
|
(5,600 |
) |
|
(10,095 |
) |
|
|
||
|
Beneficial share of impairment charge |
|
|
|
19,834 |
|
|
|
|
|
|||
|
Gains on partial dispositions of ownership interests in UJVs |
|
|
|
|
|
(138,696 |
) |
|
|
|||
|
Gains on remeasurements of ownership interests in UJVs |
|
|
|
|
|
(145,010 |
) |
|
|
|||
|
Beneficial interest expense |
|
(30,319 |
) |
|
(16,127 |
) |
|
(34,851 |
) |
|
(17,798 |
) |
|
Beneficial income tax expense – TRG and TCO |
|
(37 |
) |
|
(933 |
) |
|
(2,021 |
) |
|
(991 |
) |
|
Beneficial income tax expense – TCO |
|
11 |
|
|
|
|
|
|
|
|||
|
Non-real estate depreciation |
|
(1,143 |
) |
|
|
|
(1,150 |
) |
|
|
||
|
Preferred dividends and distributions |
|
(5,784 |
) |
|
|
|
(5,784 |
) |
|
|
||
|
Funds from Operations attributable to partnership unitholders and participating securities of TRG |
|
13,736 |
|
|
20,722 |
|
|
40,473 |
|
|
37,914 |
|
|
|
|
|
|
|
|
|
|
|
||||
|
STRAIGHTLINE AND PURCHASE ACCOUNTING ADJUSTMENTS: |
|
|
|
|
|
|
|
|||||
|
Net straight-line adjustments to rental revenues, recoveries, and ground rent expense at TRG% |
|
441 |
|
|
(1,543 |
) |
|
1,712 |
|
|
(422 |
) |
|
The Mall at Green Hills purchase accounting adjustments – rental revenues |
|
24 |
|
|
|
|
13 |
|
|
|
||
|
Country Club Plaza purchase accounting adjustments – rental revenues at TRG% |
|
|
|
235 |
|
|
|
|
61 |
|
||
|
The Gardens Mall purchase accounting adjustments – rental revenues at TRG% |
|
|
|
(377 |
) |
|
|
|
(639 |
) |
||
|
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. |
||||||||||||
Contacts
Erik Wright, Taubman, Manager, Investor Relations, 248-258-7390
ewright@taubman.com
Maria Mainville, Taubman, Director, Strategic Communications, 248-258-7469
mmainville@taubman.com
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