Oct. 26, 2009 (PR Newswire) -- BLOOMFIELD HILLS, Mich., Oct. 26 /PRNewswire-FirstCall/ -- Taubman Centers, Inc. (NYSE: TCO) today announced its financial results for the third quarter of 2009.

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Net income (loss) allocable to common shareholders per diluted share (EPS) was $(1.77) for the quarter ended September 30, 2009, versus $0.17 for the quarter ended September 30, 2008. The 2009 results include the $2.00 per share impact of the previously announced impairment charges relating to The Pier Shops at Caesars (Atlantic City, N.J.) and Regency Square (Richmond, Va.). EPS for the nine months ended September 30, 2009 was $(1.39), versus $0.26 for the first nine months of 2008.

Adjusted Funds from Operations per diluted share (which excludes the 2009 impairment charges) was $0.74 for the quarters ended September 30, 2009 and 2008 respectively. Funds from Operations (FFO) was $(1.26) per diluted share for the quarter ended September 30, 2009.

Adjusted FFO (which excludes the 2009 impairment charges and the restructuring charge taken in the first half of the year) for the nine months ended September 30, 2009 was $2.13, an increase of 2.4 percent from $2.08 for the nine months ended September 30, 2008. There were no adjustments during the first three quarters of 2008. FFO per share was $0.11 for the nine months ended September 30, 2009.

"We're continuing to experience a tough retail environment," said Robert S. Taubman, chairman, president and chief executive officer of Taubman Centers. "As retailers rationalize locations, we have been very successful collecting lease cancellation income. This more than offset the declines in rents and recoveries during the quarter."

Operating Statistics in Line with Prior Guidance

Ending occupancy for Taubman's portfolio was 88.5 percent on September 30, 2009 versus 90.5 percent on September 30, 2008. Leased space was 91.0 percent on September 30, 2009 versus 92.4 percent on September 30, 2008.

Average rent per square foot in the company's 16 consolidated properties for the third quarter of 2009 was $42.36 versus $44.04 for the third quarter of 2008. For the nine months ended September 30, 2009, average rent per square foot in the consolidated properties was $43.47 versus $44.04 in the nine months ended September 30, 2008.

Mall tenant sales per square foot declined 8.0 percent from the third quarter of 2008. For the twelve months ended September 30, 2009, mall tenant sales per square foot was down 11.8 percent to $497 per square foot.

"The sales performance trend is the best we've reported since the third quarter of 2008," said Mr. Taubman. "In fact, the month of September, while down 2.9 percent, was significantly better than we have been reporting all year. We are hopeful that the improved sales trends mark the bottom of this cycle. As sales improve, our retailers will become more profitable. Eventually, this will be reflected in stronger leasing and operating results."

Guidance

The company previously announced adjusted FFO guidance in the range of $2.73 to $2.93 per diluted share, excluding the restructuring charge incurred in the first half of the year. Excluding the impact of the impairment and restructuring charges, the company is narrowing the range for adjusted FFO per share guidance to $2.88 to $2.93, the top of the previously announced range. FFO per diluted share is expected to be $0.87 to $0.92. The company is also narrowing its guidance for 2009 EPS to $(1.13) to $(1.03).

Supplemental Investor Information Available

The company provides supplemental investor information along with its earnings announcements, available online at www.taubman.com under "Investor Relations." This includes the following:

--  Income Statements
--  Earnings Reconciliations
--  Changes in Funds from Operations and Earnings (Loss) Per Share
--  Components of Other Income, Other Operating Expense, and Gains on Land
Sales and Other Nonoperating Income
--  Recoveries Ratio Analysis
--  Balance Sheets
--  Debt Summary
--  Other Debt, Equity and Certain Balance Sheet Information
--  Construction
--  Capital Spending
--  Operational Statistics
--  Owned Centers
--  Major Tenants in Owned Portfolio

--  Anchors in Owned Portfolio

Investor Conference Call

The company will host a conference call at 1:00 PM. (EDT) on October 27 to discuss these results, business conditions and the company's outlook for the remainder of 2009. The conference call will be simulcast at www.taubman.com under "Investor Relations" as well as www.earnings.com and www.streetevents.com. An online replay will follow shortly after the call and continue for approximately 90 days.

Taubman Centers is a real estate investment trust engaged in the development and management of regional and super regional shopping centers. Taubman's 24 U.S. owned and/or managed properties, the most productive in the industry, serve major markets from coast to coast. Taubman Centers is headquartered in Bloomfield Hills, Michigan and its Taubman Asia subsidiary is headquartered in Hong Kong. For more information about Taubman, visit www.taubman.com.

For ease of use, references in this press release to "Taubman Centers", "company" or "Taubman" mean Taubman Centers, Inc. 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.

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements reflect management's 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 the continuing impacts of the U.S. recession and global credit environment, other changes in general economic and real estate conditions, changes in the interest rate environment and the availability of financing, and adverse changes in the retail industry. Other risks and uncertainties are discussed in the company's 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 Periods Ended September 30, 2009 and 2008
-------------------------------------------------
(in thousands of dollars, except as indicated)

Three Months Ended         Year to Date
------------------         ------------
2009      2008 (2)      2009     2008 (2)
----      --------      ----     --------

Net income (loss) (1),(2)    (138,788)     27,836     (93,396)     72,766
Noncontrolling share of
(income) loss of
consolidated joint
ventures (2)                   3,456      (1,416)       (270)     (3,722)
Distributions in excess of
noncontrolling share of
income of consolidated
joint ventures (2)                        (1,578)                 (7,973)
Noncontrolling share of
(income) loss of TRG (2)      45,894      (7,445)     34,018     (17,866)
Distributions in excess
of noncontrolling share
of income of TRG (2)                      (3,565)                (15,183)
TRG series F preferred
distributions                   (615)       (615)     (1,845)     (1,845)
Preferred stock dividends      (3,658)     (3,658)    (10,975)    (10,975)
Distributions to
participating
securities of TRG               (362)       (362)     (1,198)     (1,085)
Net income (loss)
attributable to Taubman
Centers, Inc. common
shareowners (2)              (94,073)      9,197     (73,666)     14,117
Net income (loss) per
common share - basic (2)       (1.77)       0.17       (1.39)       0.27
Net income (loss) per
common share - diluted (2)     (1.77)       0.17       (1.39)       0.26
Beneficial interest in
EBITDA -Consolidated
Businesses (1), (3)          (79,985)     78,973      72,791     231,550
Beneficial interest in
EBITDA -Unconsolidated
Joint Ventures (3)            24,413      25,636      70,897      71,394
Funds from
Operations (1), (3)         (100,323)     59,712       8,637     167,681
Funds from Operations
attributable to
TCO (1), (3)                 (67,019)     39,764       5,707     111,588
Funds from Operations
per common share -
basic (1), (3)                 (1.26)       0.75        0.11        2.11
Funds from Operations
per common share -
diluted (1), (3)               (1.26)       0.74        0.11        2.08
Adjusted Funds from
Operations (1), (3)           60,479      59,712     172,069     167,681
Adjusted Funds from
Operations attributable
to TCO (1), (3)               40,402      39,764     114,884     111,588
Adjusted Funds from
Operations per common
share - basic (1), (3)          0.76        0.75        2.16        2.11
Adjusted Funds from
Operations per common
share - diluted (1), (3)        0.74        0.74        2.13        2.08
Weighted average number
of common shares
outstanding -basic        53,147,866  52,908,924  53,112,145  52,815,246
Weighted average number
of common shares
outstanding -diluted      53,147,866  53,412,236  53,112,145  53,370,218
Common shares outstanding
at end of period          53,171,237  52,948,733
Weighted average units -
Operating Partnership -
basic                     79,558,921  79,450,825  79,541,688  79,365,719
Weighted average units -
Operating Partnership -
diluted                   81,254,902  80,825,398  80,936,239  80,791,952
Units outstanding at
end of period -
Operating Partnership     79,558,922  79,481,177
Ownership percentage of
the Operating
Partnership at end of
period                          66.8%       66.6%
Number of owned shopping
centers at end of period          23          23          23          23

Operating Statistics:
Mall tenant sales (4)       1,020,834   1,112,502   2,957,114   3,312,137
Ending occupancy                 88.5%       90.5%       88.5%       90.5%
Average occupancy                88.4%       90.4%       88.6%       90.1%
Leased space at end of
period                          91.0%       92.4%       91.0%       92.4%
Mall tenant occupancy
costs as a percentage
of tenant sales -
Consolidated
Businesses (4)                  15.8%       15.6%       16.9%       15.6%
Mall tenant occupancy
costs as a percentage of
tenant sales -
Unconsolidated Joint
Ventures (4)                    15.6%       14.7%       15.8%       14.1%
Rent per square foot -
Consolidated Businesses        42.36       44.04       43.47       44.04
Rent per square foot -
Unconsolidated Joint
Ventures                       44.56       44.52       44.59       44.72

(1) The three and nine month periods ended September 30, 2009 include
impairment charges related to the write down of the book values of The
Pier Shops and Regency Square to their fair values. The nine month period
ended September 30, 2009 also includes a restructuring charge, which
primarily represents the costs of termination of personnel. No similar
charges were incurred in the three and nine month periods ended September 30, 2008.

(2) On January 1, 2009, the Company adopted Accounting Standards
Codification (ASC) Topic 810, "Consolidation" as it relates to
noncontrolling interests. Consequently, noncontrolling interests in
consolidated subsidiaries with equity balances of less than zero are now
allocated income equal to their ownership interests in the subsidiaries.
Under previous accounting, because the net equity balances of the
Operating Partnership and the outside partners in certain consolidated
joint ventures were less than zero, the income attributed to the
noncontrolling partners was equal to their share of distributions.