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holiday investment property for sale overseas
News and Information Article
* FFO Per Share $0.05 Ahead of Consensus
* Robust Tenant Sales per Square Foot Up 5.0%
* Floating Interest Rate Exposure Nearly Eliminated
BLOOMFIELD HILLS, Mich., April 20 /-FirstCall/ -- Taubman
Centers, Inc. (NYSE: TCO) announced its financial results for the first
quarter of 2006.
(Logo: http://www.newscom.com/cgi-bin/prnh/20051005/TAUBMANLOGO )
Net Income allocable to common shareholders per diluted common share
(EPS) for the quarter ended March 31, 2006 was $0.10, up from $0.05 for the
same period last year.
Taubman Centers Adjusted Funds from Operations (FFO) per diluted share
was $0.62 for the quarter ended March 31, 2006, an increase of 8.8 percent
from $0.57 per diluted share for the same period last year. Adjusted FFO
excludes financing charges incurred during the first quarter of 2006. FFO
for the quarter ended March 31, 2006 was $0.60 per diluted share, an
increase of 5.3 percent from $0.57 per share for the same period last year.
This result was $0.05 ahead of consensus.
"These are solid results," said Robert S. Taubman, chairman, president
and chief executive officer of Taubman Centers. "The increase in our FFO
was primarily due to increased rents and lease cancellation income in our
core portfolio and the strong opening of Northlake Mall (Charlotte, N.C.)
in September 2005."
Solid Operating Statistics
The companys shopping centers were 90.9 percent leased on March 31,
2006, up 0.4 percent from 90.5 percent on March 31, 2005. Occupancy was
88.3 percent on March 31, 2006 versus 88.4 percent on March 31, 2005.
Tenant sales per square foot increased 5.0 percent over the first
quarter of 2005. "We are especially pleased with the sales performance
given the later Easter this year and the tough comparison with the first
quarter of 2005 -- when we posted near-record tenant sales per square foot
growth," said Mr. Taubman.
Focused on Growth
"The Mall at Partridge Creek (Clinton Township, Mich.) continues to be
on schedule for its October 2007 opening. The project is on budget and we
are extremely pleased with the leasing and merchandising," said Mr.
Taubman. "Earlier this week we issued a preview of the stores and
restaurants joining Nordstrom, Parisian and MJR Cinema 14. The strength of
names like Apple, Ann Taylor, Coldwater Creek, J.Crew, Brooks Brothers,
Delias, Eddie Bauer, Gap, Gap Kids, Baby Gap, Gap Body and Banana Republic
is a testament to the quality of the market, its demographics and growth.
In addition, we announced the first four of six restaurants for the center.
This great restaurant line-up includes P.F. Changs China Bistro, Bravo!
Italian Kitchen, California Pizza Kitchen and Claddagh Irish Pub. This is a
remarkable line-up, especially 18 months from opening."
The Pier at Caesars (Atlantic City, N.J.) is now expected to open on
June 27. The centers upscale stores and distinctive restaurants promise to
redefine shopping in Atlantic City. For the first time Atlantic City will
offer stores like Louis Vuitton, Gucci, Burberry, Tiffany & Co., Ferragamo,
Scoop, Apple, and Tommy Bahama and restaurants such as Steven Starrs The
Continental and Buddakan, Jeffrey Chodorows English is Italian and
rumjungle, Phillips Seafood and Patrick Lyons Game On, Dubliner and
Sonsie. Taubman Centers will own 30 percent of The Pier at Caesars and is
providing leasing and development administration services as needed.
Sound Balance Sheet
"Our balance sheet grows stronger and stronger," said Lisa A. Payne,
Taubman Centers vice chairman and chief financial officer. "Since the
first of the year we have continued to take advantage of both the favorable
interest rate environment and our excess cash position to pay off floating
rate debt, refinance with long-term debt at attractive fixed rates and
announce the redemption of all outstanding Series A Preferred Stock. At
March 31, 2006 floating rate debt was about two percent of our market
capitalization and our lines of credit were fully available." The company:
* refinanced Northlake Mall, putting a $215.5 million 10-year interest-
only non-recourse loan on the property carrying an all-in interest rate of
5.4 percent;
* paid off $144.4 million of floating rate loans on The Shops at Willow
Bend (Plano, Texas) with proceeds from the $540 million refinancing of the
Mall at Short Hills (Short Hills, N.J.) that closed in December;
* paid off $56.5 million of loans on The Mall at Oyster Bay, a
development project in Syossett, Long Island, N.Y.;
* locked in a fixed rate of 5.24 percent for an expected $280 million
non-recourse refinancing (10-year interest only) which will occur in May at
Cherry Creek Shopping Center (Denver, Col.); and
* in mid-April, called the remaining $113 million of Series A
Cumulative Redeemable 8.30% Preferred Stock for redemption.
"Given the uncertain interest rate environment, were delighted we now
have minimal interest rate exposure," added Ms. Payne.
Financial Statement Presentation
During the first quarter, as previously announced, Taubman Centers
adopted new accounting guidance that resulted in the classification of
Cherry Creek Shopping Center as a consolidated property as of the first of
the year. Therefore, effective in the first quarter, 14 of the companys 21
owned properties are consolidated in the financial presentation.
Also during the first quarter, the company reclassified certain line
items on its income statement. During 2006, these changes will be presented
consistently for both the current period and for the prior years results.
These changes make Taubman Centers presentation more consistent with its
peers. None of these changes had any impact on the companys 2005 Net
Income or FFO. They include:
* Gains on Land Sales and Interest Income, which were previously
included in "Other Revenues," are now presented separately.
* Depreciation that was previously included in "Recoverable Expenses"
is now included in "Depreciation and Amortization."
* The remaining "Recoverable Expenses" have been re-captioned
"Maintenance, Taxes and Utilities."
* Promotional funds, which were previously presented on a net amount
retained basis, are now presented on a gross basis, with revenues included
in "Recoveries from Tenants" and the related expenses in "Other Operating"
expense.
A quarterly income statement for 2005 that is consistent with the 2006
presentation is included in the supplemental investor package on
http://www.taubman.com .
Outlook
Excluding the impact of financing-related charges on the refinancings
and planned redemptions of preferred stock, the company is increasing its
guidance on 2006 Adjusted FFO per diluted share to a range of $2.50 to
$2.55. Including the impact of the refinancings and the planned
redemptions, 2006 FFO per diluted share is estimated to be in the range of
$2.41 to $2.46. The company anticipates its 2006 Net Income allocable to
common shareholders will be in the range of $0.31 to $0.52 per common
share.
Supplemental Investor Information Available
The company provides supplemental investor information along with its
earnings announcements, available online at http://www.taubman.com under
"Investor Relations." This includes the following:
* Income Statement
* Income Statement - 2005 Reclassified by Quarter
* Earnings Reconciliations
* Changes in Funds from Operations and Earnings Per Share
* Components of Other Income, Other Operating Expense, and Gains on
Land Sales and Interest Income
* Balance Sheets
* Debt Summary
* Other Debt and Equity Information
* Construction
* Capital Spending
* Divestitures
* Operational Statistics
* Owned Centers
* Major Tenants in Owned Portfolio
* Anchors in Owned Portfolio
Investor Conference Call
The company will host a conference call at 11:00 a.m. (EDT) on April 21
to discuss these results and will simulcast the conference call at
http://www.taubman.com under "Investor Relations" as well as
http://www.fulldisclosure.com and http://www.streetevents.com . The online
replay will follow shortly after the call and continue for 90 days. In
addition, the conference call will be available as a podcast at
http://www.reitcafe.com .
Taubman Centers, Inc., a real estate investment trust, owns, develops,
acquires and operates regional shopping centers nationally. Taubman Centers
currently owns and/or manages 22 urban and suburban, regional and super
regional shopping centers in 11 states. In addition, two centers are under
construction. The Pier at Caesars is scheduled to open on June 27, 2006 and
The Mall at Partridge Creek is scheduled to open in October 2007. Taubman
Centers is headquartered in Bloomfield Hills, Mich.
This press release contains forward-looking statements within the
meaning of the Securities Act of 1933 as amended. These statements reflect
managements current views with respect to future events and financial
performance. Actual results may differ materially from those expected
because of various risks and uncertainties, including, but not limited to
changes in general economic and real estate conditions, changes in the
interest rate environment and the availability of financing, construction
delays, and adverse changes in the retail industry. Other risks and
uncertainties are discussed in the companys filings with the Securities
and Exchange Commission including its most recent Annual Report on Form
10-K.
TAUBMAN CENTERS, INC.
Table 1 - Summary of Results
For the Three Months Ended March 31, 2006 and 2005
(in thousands of dollars, except as indicated)
Three Months Ended March 31
2006 2005
Income before and minority and
preferred interests (1) 21,408 18,216
Minority interest in consolidated
joint ventures (461) (6)
Minority share of income of TRG (2) (5,717) (5,165)
Distributions in excess of earnings
allocable to minority partners (2) (3,181) (4,010)
TRG preferred distributions (615) (615)
Net income 11,434 8,420
Preferred dividends (6,003) (6,150)
Net income allocable to common shareowners 5,431 2,270
Net income per common share -
basic and diluted 0.10 0.05
Beneficial interest in EBITDA -
consolidated businesses (3) (4) 72,703 60,868
Beneficial interest in EBITDA -
unconsolidated joint ventures (3) (4) 22,368 26,668
Funds from Operations (3) 49,120 46,572
Funds from Operations allocable to TCO (3) 31,582 28,531
Funds from Operations per common
share - basic (3) 0.61 0.57
Funds from Operations per common
share - diluted (3) 0.60 0.57
Weighted average number of common
shares outstanding-basic 52,128,022 49,643,865
Weighted average number of common
shares outstanding - diluted 52,350,986 49,791,718
Common shares outstanding at end of
period 52,774,536 49,976,870
Weighted average units - Operating
Partnership - basic 81,076,361 81,035,007
Weighted average units - Operating
Partnership - diluted 82,170,587 82,054,122
Units outstanding at end of period -
Operating Partnership 81,076,642 81,074,049
Ownership percentage of the Operating
Partnership at end of period 65.1% 61.6%
Number of owned shopping centers at
end of period 21 21
Operating Statistics:
Mall tenant sales 927,139 885,891
Mall tenant sales - comparable (5) 881,192 842,406
Ending occupancy (6) 88.3% 88.4%
Ending occupancy - comparable (5) (6) 88.3% 88.5%
Average occupancy (6) 88.4% 88.6%
Average occupancy - comparable (5) (6) 88.4% 88.7%
Leased space at end of period (6) 90.9% 90.5%
Leased space at end of period -
comparable (5) (6) 90.7% 90.5%
Mall tenant occupancy costs as a
percentage of tenant sales -
consolidated businesses (4) 15.7% 15.9%
Mall tenant occupancy costs as a
percentage of tenant sales -
unconsolidated joint ventures (4) 13.8% 14.5%
Rent per square foot - consolidated
businesses (4) (5) 43.16 41.48
Rent per square foot - unconsolidated
joint ventures (4) (5) 41.80 42.48
(1) Income before minority and preferred interests for the three months
ended March 31, 2006 includes a $2.1 million charge incurred in connection
with the write-off of financing costs related to the pay-off of the loans
on The Shops at Willow Bend prior to their maturity date.
(2) Because the Operating Partnerships balance of net equity allocable
to partnership unitholders is less than zero, the income allocated to
minority partners during the three months ended March 31, 2006 and 2005 is
equal to the minority partners share of distributions. The Operating
Partnerships net equity allocable to partnership unitholders is less than
zero due to accumulated distributions in excess of net income and not as a
result of operating losses.
(3) Beneficial Interest in EBITDA represents the Operating
Partnerships share of the earnings before interest and depreciation and
amortization of its consolidated and unconsolidated businesses. The Company
believes Beneficial Interest in EBITDA provides a useful indicator of
operating performance, as it is customary in the real estate and shopping
center business to evaluate the performance of properties on a basis
unaffected by capital structure.
In addition, the Company uses Net Operating Income (NOI) as an
alternative measure to evaluate the operating performance of centers, both
on individual and stabilized portfolio bases. The Company defines NOI as
property-level operating revenues (rental income, excluding straightline
adjustments of minimum rent, tenant recoveries, and other shopping
center-related income) less maintenance, taxes, utilities, ground rent, and
other property operating expenses. Since NOI excludes general and
administrative expenses, pre- development charges, interest expense,
depreciation and amortization, and gains from 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.
The National Association of Real Estate Investment Trusts (NAREIT)
defines Funds from Operations (FFO) as net income (loss) (computed in
accordance with Generally Accepted Accounting Principles (GAAP)), excluding
gains (or losses) from extraordinary items and sales of properties, plus
real estate related depreciation and after adjustments for unconsolidated
partnerships and joint ventures. The Company believes that FFO is a useful
supplemental measure of operating performance for REITs. Historical cost
accounting for real estate assets implicitly assumes that the value of real
estate assets diminishes predictably over time. Since real estate values
instead have historically risen or fallen with market conditions, the
Company and most industry investors and analysts have considered
presentations of operating results that exclude historical cost
depreciation to be useful in evaluating the operating performance of REITs.
FFO is primarily used by the Company in measuring performance and in
formulating corporate goals and compensation.
These non-GAAP measures as presented by the Company are not necessarily
comparable to similarly titled measures used by other REITs due to the fact
that not all REITs use common definitions. None of these non-GAAP measures
should be considered alternatives to net income as an indicator of the
Companys operating performance, and they do not represent cash flows from
operating, investing, or financing activities as defined by GAAP.
As previously reported for 2005, because of a change in the Companys
business practice to offer its tenants the option to pay a fixed charge or
pay their share of common area maintenance (CAM) costs and related change
to contractual terms of leases, the Company began adding back in the fourth
quarter of 2005 all depreciation on CAM assets to calculate EBITDA and FFO,
including depreciation on CAM assets that were recovered from tenants in
the period of acquisition and depreciated over the recovery period. The
Company has restated previously reported amounts in order to be comparable
with 2006 amounts. For the three months ended March 31, 2006 and 2005,
TRGs beneficial interest in the depreciation of center replacement assets
that were reimbursed in the period of acquisition for its Consolidated
Businesses and Unconsolidated Joint Ventures was $0.1 million and $0.1
million, respectively (in total, $0.00 per share) and $0.2 million and $0.3
million, respectively (in total, $0.01 per share). The Companys share of
depreciation on all CAM capital expenditures, which were previously
included as a component of recoverable expenses, was $2.0 million and $2.4
million for the three months ended March 31, 2006 and 2005, respectively.
(4) The results of Cherry Creek Shopping Center are presented within
the Consolidated Businesses for periods beginning January 1, 2006, as a
result of the Companys adoption of EITF 04-5. Results of Cherry Creek
prior to 2006 are included within the Unconsolidated Joint Ventures.
(5) Statistics exclude Northlake Mall, Waterside Shops at Pelican Bay,
and Woodland. 2005 statistics have been restated to include comparable
centers to 2006.
(6) Statistics include anchor spaces at value centers (Arizona Mills,
Dolphin Mall, and Great Lakes Crossing).
TAUBMAN CENTERS, INC.
Table 2 - Income Statement (1)
For the Three Months Ended March 31, 2006 and 2005
(in thousands of dollars)
2006 2005
UNCONSOLIDATED UNCONSOLIDATED
CONSOLIDATED JOINT CONSOLIDATED JOINT
BUSINESSES VENTURES BUSINESSES VENTURES
(2) (2)
REVENUES:
Minimum rents 75,995 34,534 63,078 45,241
Percentage rents 2,890 928 1,696 1,319
Expense recoveries 44,893 18,072 37,560 22,872
Management, leasing and
development services 2,923 2,200
Other 11,320 4,790 7,623 3,039
Total revenues 138,021 58,324 112,157 72,471
EXPENSES:
Maintenance, taxes and
utilities 34,798 13,382 29,998 16,033
Other operating 16,595 5,242 13,425 7,674
Management, leasing and
development services 1,518 1,195
General and administrative 6,924 5,959
Interest expense (3) 34,283 13,242 25,540 16,775
Depreciation and
amortization (4) 33,389 10,182 29,499 13,580
Total expenses 127,507 42,048 105,616 54,062
Gains on land sales and
interest income 2,423 252 2,605 112
12,937 16,528 9,146 18,521
Equity in income of
Unconsolidated Joint Ventures 8,471 9,070
Income before minority and
preferred interests 21,408 18,216
Minority and preferred interests:
TRG preferred distributions (615) (615)
Minority share of consolidated
joint ventures (461) (6)
Minority share of income
of TRG (5,717) (5,165)
Distributions in excess of
minority share of income
of TRG (3,181) (4,010)
Net income 11,434 8,420
Preferred dividends (6,003) (6,150)
Net income allocable to common
shareowners 5,431 2,270
SUPPLEMENTAL INFORMATION (5):
EBITDA - 100% 80,609 39,952 64,185 48,876
EBITDA - outside
partners share (7,906) (17,584) (3,317) (22,208)
Beneficial interest in EBITDA 72,703 22,368 60,868 26,668
Beneficial interest expense (31,206) (7,556) (24,274) (9,329)
Non-real estate depreciation (571) (596)
Preferred dividends and
distributions (6,618) (6,765)
Funds from Operations
contribution 34,308 14,812 29,233 17,339
Net straightline adjustments
to rental revenue,
recoveries, and ground
rent expense at TRG % 129 (230) 489 (82)
(1) The results of Cherry Creek Shopping Center are presented within
the Consolidated Businesses for periods beginning January 1, 2006, as a
result of the Companys adoption of EITF 04-5. Results of Cherry Creek
prior to 2006 are included within the Unconsolidated Joint Ventures. In
addition, in 2006 the Company modified its income statement presentation
for depreciation of center replacement assets, revenues and expense related
to marketing and promotion services, and gains on land sales and interest
income. As a result, certain reclassifications have been made to prior year
amounts to conform to current year classifications.
(2) With the exception of the Supplemental Information, amounts include
100% of the Unconsolidated Joint Ventures. Amounts are net of intercompany
transactions. The Unconsolidated Joint Ventures are presented at 100% in
order to allow for measurement of their performance as a whole, without
regard to the Companys ownership interest. In its consolidated financial
statements, the Company accounts for its investments in the Unconsolidated
Joint Ventures under the equity method.
(3) Interest expense for the three months ended March 31, 2006 includes
a $2.1 million charge representing the write-off of financing costs related
to the pay-off of the loans on The Shops at Willow Bend prior to their
maturity date.
(4) Included in depreciation and amortization of the Consolidated
Businesses and Unconsolidated Joint Ventures (both at 100%) are $1.7
million and $0.6 million, respectively, of depreciation of center
replacement assets for the three months ended March 31, 2006, and $1.7
million and $1.5 million, respectively, for the three months ended March
31, 2005.
(5) In order to be comparable to 2006 amounts, EBITDA and FFO for the
three months ended March 31, 2005 have been restated from amounts
previously reported to include an add-back of depreciation of center
replacement assets reimbursed in the period of acquisition. See Note 3 to
Table 1 of this release.
TAUBMAN CENTERS, INC.
Table 3 - Reconciliation of Net Income to Funds from Operations and
Adjusted Funds from Operations
For the Three Months Ended March 31, 2006 and 2005
(in thousands of dollars; amounts allocable to TCO may not recalculate due
to rounding)
Three Months Ended
2006 2005
Net income allocable to common
shareowners 5,431 2,270
Add (less) depreciation and
amortization (1):
Consolidated businesses at 100% 33,389 29,499
Minority partners in consolidated
joint ventures (4,368) (2,045)
Share of unconsolidated joint
ventures 6,341 8,269
Non-real estate depreciation (571) (596)
Add minority interests in TRG:
Minority share of income of TRG 5,717 5,165
Distributions in excess of minority
share of income of TRG 3,181 4,010
Funds from Operations 49,120 46,572
TCOs average ownership percentage of TRG 64.3% 61.3%
Funds from Operations allocable to TCO 31,582 28,531
Funds from Operations (1) (2) 49,120 46,572
Write-off of financing costs 2,065
Adjusted Funds from Operations (2) 51,185 46,572
TCOs average ownership percentage of TRG 64.3% 61.3%
Adjusted Funds from Operations
allocable to TCO (2) 32,909 28,531
(1) Depreciation and amortization includes depreciation of center
replacement assets recoverable from tenants, which were previously
classified as recoverable expenses in the Companys financial statements.
TRGs beneficial interest in these amounts are $2.0 million and $2.4
million for the three months ended March 31, 2006 and 2005, respectively.
In order to be comparable to 2006 amounts, 2005 amounts have been restated
to include depreciation of center replacement assets that were reimbursed
in the period of acquisition. See Note 3 to Table 1 of this release.
(2) Adjusted FFO excludes a $2.1 million ($0.025 per share) charge
during the first quarter of 2006 in connection with the write-off of
financing costs related to the pay-off of the loans on The Shops at Willow
Bend prior to their maturity date. The Company discloses this Adjusted FFO
due to the significance and infrequent nature of the charge. Given the
significance of the charge, the Company believes it is essential to a
readers understanding of the Companys results of operations to emphasize
the impact on the Companys earnings measures. The adjusted measures are
not and should not be considered alternatives to net income or cash flows
from operating, investing, or financing activities as defined by GAAP.
TAUBMAN CENTERS, INC.
Table 4 - Reconciliation of Net Income to Beneficial Interest in EBITDA
For the Three Months Ended March 31, 2006 and 2005
(in thousands of dollars; amounts allocable to TCO may not recalculate due
to rounding)
Three Months Ended
2006 2005
Net income 11,434 8,420
Add (less) depreciation and
amortization (1):
Consolidated businesses at 100% 33,389 29,499
Minority partners in consolidated
joint ventures (4,368) (2,045)
Share of unconsolidated joint ventures 6,341 8,269
Add (less) preferred interests and
interest expense:
Preferred distributions 615 615
Interest expense:
Consolidated businesses at 100% 34,283 25,540
Minority partners in consolidated
joint ventures (3,077) (1,266)
Share of unconsolidated joint ventures 7,556 9,329
Add minority interests in TRG:
Minority share of income of TRG 5,717 5,165
Distributions in excess of minority
share of income of TRG 3,181 4,010
Beneficial Interest in EBITDA 95,071 87,536
TCOs average ownership percentage of TRG 64.3% 61.3%
Beneficial Interest in EBITDA
allocable to TCO 61,126 53,627
(1) Depreciation and amortization includes depreciation of center
replacement assets recoverable from tenants, which were previously
classified as recoverable expenses in the Companys financial statements.
In order to be comparable to 2006 amounts, 2005 amounts have been restated
to include depreciation of center replacement assets that were reimbursed
in the period of acquisition. See Note 3 to Table 1 of this release.
TAUBMAN CENTERS, INC.
Table 5 - Balance Sheets
As of March 31, 2006 and December 31, 2005
(in thousands of dollars)
As of
March 31, 2006 December 31, 2005
Consolidated Balance Sheet of Taubman
Centers, Inc. (1):
Assets:
Properties 3,285,949 3,081,324
Accumulated depreciation and amortization (739,993) (651,665)
2,545,956 2,429,659
Investment in Unconsolidated Joint
Ventures 107,525 106,117
Cash and cash equivalents 140,771 163,577
Accounts and notes receivable, net 34,385 41,717
Accounts and notes receivable from
related parties 2,370 2,400
Deferred charges and other assets 54,971 54,110
2,885,978 2,797,580
Liabilities:
Notes payable 2,275,185 2,089,948
Accounts payable and accrued liabilities 208,657 235,410
Dividends and distributions payable 16,096 15,819
Distributions in excess of
investments in and net income of
Unconsolidated Joint Ventures 91,258 101,028
2,591,196 2,442,205
Preferred Equity of TRG 29,217 29,217
Shareowners Equity:
Series A Cumulative Redeemable
Preferred Stock 45 45
Series B Non-Participating
Convertible Preferred Stock 28 29
Series G Cumulative Redeemable
Preferred Stock
Series H Cumulative Redeemable
Preferred Stock
Common Stock 528 519
Additional paid-in capital 687,763 739,090
Accumulated other comprehensive
income (loss) (7,676) (9,051)
Dividends in excess of net income (415,123) (404,474)
265,565 326,158
2,885,978 2,797,580
Combined Balance Sheet of
Unconsolidated Joint Ventures (2):
Assets:
Properties 913,728 1,076,743
Accumulated depreciation and amortization (295,872) (363,394)
617,856 713,349
Cash and cash equivalents 22,139 33,498
Accounts and notes receivable 16,885 23,189
Deferred charges and other assets 16,501 24,458
673,381 794,494
Liabilities:
Notes payable 822,347 999,545
Accounts payable and other liabilities 36,670 59,322
859,017 1,058,867
Accumulated Deficiency in Assets:
Accumulated deficiency in assets - TRG (138,535) (170,124)
Accumulated deficiency in assets -
Joint Venture Partners (44,156) (91,179)
Accumulated other comprehensive
income (loss) - TRG (2,333) (2,430)
Accumulated other comprehensive
income (loss) - Joint Venture
Partners (612) (640)
(185,636) (264,373)
673,381 794,494
(1) The March 31, 2006 balance sheet amounts include Cherry Creek
Shopping Center, which the Company began consolidating upon the adoption of
EITF 04-5 on January 1, 2006. The effect of adopting EITF 04-5 on the
January 1, 2006 balance sheet was an increase in assets of approximately
$128 million and liabilities of approximately $180 million, and a $52
million reduction of additional paid-in capital, representing the
cumulative effect of change in accounting principle.
(2) Amounts exclude The Pier at Caesars, a center under construction,
which TRG made a $4 million contribution to in January 2005. Amounts as of
March 31, 2006 also exclude Cherry Creek Shopping Center, which the Company
began consolidating upon the adoption of EITF 04-5.
TAUBMAN CENTERS, INC.
Table 6 - 2006 Earnings Guidance
(all dollar amounts per common share on a diluted basis; amounts may not
add due to rounding)
Range for
Year Ended
December 31, Equity
2006 Before and Range for
Equity and Financing Year Ended
Financing Costs December 31,
Costs (1) 2006
Funds from Operations per
common share 2.50 2.55 (0.09) 2.41 2.46
Real estate depreciation - TRG (1.69) (1.60) (1.69) (1.60)
Depreciation of TCOs
additional basis in TRG (0.13) (0.13) (0.13) (0.13)
Distributions in excess of
earnings allocable to
minority interest (0.23) (0.15) (0.05) (0.28) (0.20)
Net income allocable to common
shareholders, per common share 0.46 0.67 (0.14) 0.31 0.52
(1) The Company recognized a charge of $2.1 million during the first
quarter of 2006 in connection with the write-off of financing costs related
to the pay-off of the loans on The Shops at Willow Bend. During April 2006,
the Company announced its plan to redeem the $113 million of outstanding
shares of Series A Preferred Stock with the proceeds of the issuance of
Series I Preferred Stock in May 2006. The Series I Preferred Stock is
callable at any time, and as the floating rate return escalates over time,
the Company expects to redeem the Series I Preferred Stock prior to the
rate increase that occurs 60 days after issuance. The Company expects to
record charges of approximately $4 million and $0.5 million, representing
the difference between the carrying values and the redemption prices of the
shares of Series A and Series I Preferred Stock, respectively. The Company
also expects to recognize a charge of $1.0 million during the third quarter
of 2006 in connection with the write-off of financing costs related to the
pay-off of the loan on Dolphin Mall, when it becomes prepayable in August
2006.
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holiday investment property for sale overseas |
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Locations
