- 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
Taubman Centers, Inc. (NYSE: TCO) today reported financial
results for the third quarter of 2020.
September 30, 2020 Three
Months Ended
September 30, 2019 Three Months
Ended
September 30, 2020 Nine Months
Ended
September 30, 2019 Nine Months
Ended
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
Funds from Operations (FFO) per diluted
common share
$0.39
$0.88
$1.47
$2.59
Growth rate
(55.7)%
(43.2)%
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.
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.
Table 1 - Summary of Results
For the Periods Ended September 30,
2020 and 2019
(in thousands of dollars, except as
indicated)
Three Months Ended
Year to Date
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
(0.72
)
3.84
Funds from Operations attributable to
partnership unitholders and participating securities of TRG (1)
34,458
78,387
130,379
228,470
Funds from Operations attributable to
TCO's common shareholders (1)
24,226
54,747
91,316
160,544
Funds from Operations per common share -
basic (1)
0.39
0.89
1.48
2.62
Funds from Operations per common share -
diluted (1)
0.39
0.88
1.47
2.59
Adjusted Funds from Operations
attributable to partnership unitholders and participating
securities of TRG (1)
53,640
75,977
168,542
241,489
Adjusted Funds from Operations
attributable to TCO's common shareholders (1)
37,719
53,064
118,108
169,648
Adjusted Funds from Operations per common
share - basic (1)
0.61
0.87
1.92
2.77
Adjusted Funds from Operations per common
share - diluted (1)
0.60
0.86
1.90
2.74
Weighted average number of common shares
outstanding - basic
61,696,565
61,211,249
61,512,816
61,169,279
Weighted average number of common shares
outstanding - diluted
61,696,565
62,245,414
61,512,816
62,232,496
Common shares outstanding at end of
period
61,723,103
61,213,170
Weighted average units - Operating
Partnership - basic
87,713,880
87,641,965
87,696,394
87,097,595
Weighted average units - Operating
Partnership - diluted
88,874,258
88,676,130
88,807,212
88,160,812
Units outstanding at end of period -
Operating Partnership
87,719,766
87,643,886
Ownership percentage of the Operating
Partnership at end of period
70.4
%
69.8
%
Number of owned shopping centers at end of
period
24
24
Operating Statistics:
NOI at 100% - comparable centers - growth
% (1)(2)
(16.9
)%
(2.5
)%
(14.4
)%
(1.3
)%
NOI at 100% - comparable centers including
lease cancellation income at constant currency - growth % (1)
(16.9
)%
(14.0
)%
NOI at 100% - comparable centers excluding
lease cancellation income - growth % (1)(2)
(27.2
)%
(1.5
)%
(18.3
)%
0.3
%
NOI at 100% - comparable centers excluding
lease cancellation income at constant currency - growth %
(1)(2)
(27.2
)%
(0.9
)%
(17.9
)%
1.1
%
Beneficial interest in NOI - comparable
centers including lease cancellation income - growth % (1)
(18.3
)%
(14.5
)%
Beneficial interest in NOI - comparable
centers including lease cancellation income at constant currency -
growth % (1)
(18.3
)%
(14.4
)%
Beneficial interest in NOI - comparable
centers excluding lease cancellation income - growth % (1)
(29.0
)%
(18.7
)%
Beneficial interest in NOI - comparable
centers excluding lease cancellation income at constant currency -
growth % (1)
(29.0
)%
(18.5
)%
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
70.52
68.45
70.97
Average rent per square foot - U.S. UJVs
(3)
53.23
56.03
52.44
55.91
Average rent per square foot - Combined
U.S. centers (3)
59.28
63.36
60.52
63.48
Average rent per square foot growth % -
U.S. comparable centers (3)
(6.4
)%
(4.7
)%
Ending occupancy - all U.S. centers
88.5
%
91.7
%
Ending occupancy - U.S. comparable centers
(3)
89.9
%
92.6
%
Leased space - all U.S. centers
91.1
%
94.7
%
Leased space - U.S. comparable centers
(3)
92.6
%
95.6
%
Mall tenant sales - all U.S. centers
(4)
938,843
1,570,828
2,690,070
4,776,719
Mall tenant sales - U.S. comparable
centers (3)(4)
836,342
1,376,324
2,366,916
4,263,932
12-Months Trailing
Operating Statistics:
2020
2019
Mall tenant sales - all U.S. centers
(4)
4,828,525
6,741,322
Mall tenant sales - U.S. comparable
centers (3)(4)
4,233,859
6,063,124
Sales per square foot - U.S. comparable
centers (3)(4)
790
980
All U.S. centers (4):
Mall tenant occupancy costs as a
percentage of tenant sales - U.S. Consolidated Businesses
19.0
%
13.2
%
Mall tenant occupancy costs as a
percentage of tenant sales - U.S. UJVs
15.6
%
11.7
%
Mall tenant occupancy costs as a
percentage of tenant sales - Combined U.S. centers
17.3
%
12.5
%
U.S. comparable centers (3)(4):
Mall tenant occupancy costs as a
percentage of tenant sales - U.S. Consolidated Businesses
18.4
%
12.8
%
Mall tenant occupancy costs as a
percentage of tenant sales - U.S. UJVs
15.4
%
11.5
%
Mall tenant occupancy costs as a
percentage of tenant sales - Combined U.S. centers
17.0
%
12.2
%
(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 September 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 September
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
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.
TAUBMAN CENTERS, INC.
Table 3 - Income Statement
For the Nine Months Ended September 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
377,693
371,282
432,508
410,613
Overage rents
5,506
11,965
8,719
18,279
Management, leasing, and development
services
1,830
4,035
Other
23,963
17,697
39,056
20,779
Total revenues
408,992
400,944
484,318
449,671
EXPENSES:
Maintenance, taxes, utilities, and
promotion
110,315
133,524
118,506
132,413
Other operating
44,223
18,448
60,210
18,786
Management, leasing, and development
services
1,587
2,917
General and administrative
22,587
26,762
Restructuring charges
2,757
1,585
Simon Property Group, Inc. transaction
costs
32,505
Impairment charge
39,668
Costs associated with shareholder
activism
16,675
Interest expense
101,254
104,101
112,590
103,581
Depreciation and amortization
162,769
102,846
137,064
103,177
Total expenses
477,997
398,587
476,309
357,957
Nonoperating income, net
1,332
12,628
26,468
6,981
(67,673
)
14,985
34,477
98,695
Income tax expense
(545
)
(6,653
)
(4,924
)
(6,635
)
Equity in income of UJVs
836
49,746
Gains on partial dispositions of ownership
interests in UJVs, net of tax
11,277
138,696
Gains on remeasurements of ownership
interests in UJVs
14,146
145,010
Net income (loss)
(41,959
)
8,332
363,005
92,060
Net income/loss attributable to
noncontrolling interests:
Noncontrolling share of income of
consolidated joint ventures
(1,015
)
(3,219
)
Noncontrolling share of (income) loss of
TRG
16,653
(103,899
)
Distributions to participating securities
of TRG
(595
)
(1,817
)
Preferred stock dividends
(17,353
)
(17,353
)
Net income (loss) attributable to Taubman
Centers, Inc. common shareholders
(44,269
)
236,717
SUPPLEMENTAL INFORMATION:
EBITDA - 100%
223,255
221,932
567,837
305,453
EBITDA - outside partners' share
(15,126
)
(122,990
)
(18,475
)
(146,640
)
Beneficial interest in EBITDA
208,129
98,942
549,362
158,813
Gain on insurance recoveries - The Mall of
San Juan
(1,418
)
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
(12,759
)
(138,696
)
Gains on remeasurements of ownership
interests in UJVs
(14,146
)
(145,010
)
Beneficial interest expense
(92,977
)
(48,487
)
(103,692
)
(52,579
)
Beneficial income tax expense - TRG and
TCO
(545
)
(1,362
)
(4,735
)
(2,680
)
Beneficial income tax expense - TCO
30
Non-real estate depreciation
(3,327
)
(3,447
)
Preferred dividends and distributions
(17,353
)
(17,353
)
Funds from Operations attributable to
partnership unitholders and participating securities of TRG
67,052
63,327
124,916
103,554
STRAIGHTLINE AND PURCHASE ACCOUNTING
ADJUSTMENTS:
Net straight-line adjustments to rental
revenues, recoveries, and ground rent expense at TRG%
(2,487
)
(2,097
)
4,427
181
The Mall at Green Hills purchase
accounting adjustments - rental revenues
43
61
Country Club Plaza purchase accounting
adjustments - rental revenues at TRG%
346
257
The Gardens Mall purchase accounting
adjustments - rental revenues at TRG%
(1,018
)
(816
)
The Gardens Mall purchase accounting
adjustments - interest expense at TRG%
(1,584
)
(1,056
)
(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 was being marketed
for sale until it was ultimately sold in October 2020. 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 nine months ended September 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 - 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
•
Gain on transfer of building and
improvements
•
•
•
•
Beneficial share of impairment charge
•
•
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 September
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
(30,072
)
61,696,565
(0.49
)
215,361
61,211,249
3.52
Add distributions to participating
securities of TRG
597
871,262
Add impact of share-based compensation
915
162,903
Net income (loss) attributable to TCO
common shareholders - diluted
(30,072
)
61,696,565
(0.49
)
216,873
62,245,414
3.48
Add TCO's additional income tax
expense
11
—
Add depreciation of TCO's additional
basis
1,482
0.02
1,617
0.03
Net income (loss) attributable to TCO
common shareholders, excluding step-up depreciation and additional
income tax expense
(28,579
)
61,696,565
(0.46
)
218,490
62,245,414
3.51
Add noncontrolling share of income (loss)
of TRG
(12,052
)
26,306,431
93,690
26,430,716
Add distributions to participating
securities of TRG
871,262
Net income (loss) attributable to
partnership unitholders and participating securities of TRG
(40,631
)
88,874,258
(0.46
)
312,180
88,676,130
3.52
Add (less) depreciation and
amortization:
Consolidated businesses at 100%
49,235
0.55
47,849
0.54
Depreciation of TCO's additional basis
(1,482
)
(0.02
)
(1,617
)
(0.02
)
Noncontrolling partners in consolidated
joint ventures
(1,979
)
(0.02
)
(1,821
)
(0.02
)
Share of UJVs
16,224
0.18
17,662
0.20
Non-real estate depreciation
(1,143
)
(0.01
)
(1,150
)
(0.01
)
Less gain on transfer of building and
improvements
(5,600
)
(0.06
)
(10,095
)
(0.11
)
Add beneficial share of impairment
charge
19,834
0.22
Less gain on partial disposition of
ownership interest in UJV
(138,696
)
(1.56
)
Less gain on remeasurement of ownership
interest in UJV
(145,010
)
(1.64
)
Less impact of share-based
compensation
(915
)
(0.01
)
Funds from Operations attributable to
partnership unitholders and participating securities of TRG
34,458
88,874,258
0.39
78,387
88,676,130
0.88
TCO's average ownership percentage of TRG
- basic (1)
70.3
%
69.8
%
Funds from Operations attributable to
TCO's common shareholders, excluding additional income tax
expense
24,237
0.39
54,747
0.88
Less TCO's additional income tax
expense
(11
)
—
Funds from Operations attributable to
TCO's common shareholders (1)
24,226
0.39
54,747
0.88
Funds from Operations attributable to
partnership unitholders and participating securities of TRG
34,458
88,874,258
0.39
78,387
88,676,130
0.88
Simon Property Group, Inc. transaction
costs
17,060
0.19
Costs associated with shareholder
activism
675
0.01
Restructuring charges
2,395
0.03
876
0.01
Promote fee, net of tax - Starfield Hanam
(2)
329
—
(3,961
)
(0.04
)
Fluctuation in fair value of equity
securities
(602
)
(0.01
)
Adjusted Funds from Operations
attributable to partnership unitholders and participating
securities of TRG
53,640
88,874,258
0.60
75,977
88,676,130
0.86
TCO's average ownership percentage of TRG
- basic (3)
70.3
%
69.8
%
Adjusted Funds from Operations
attributable to TCO's common shareholders, excluding additional
income tax expense
37,730
0.60
53,064
0.86
Less TCO's additional income tax
expense
(11
)
—
Adjusted Funds from Operations
attributable to TCO's common shareholders (3)
37,719
0.60
53,064
0.86
(1) For the three months ended September
30, 2020, Funds from Operations attributable to TCO's common
shareholders was $23,910 using TCO's diluted average ownership
percentage of TRG of 69.4%. For the three months ended September
30, 2019, Funds from Operations attributable to TCO's common
shareholders was $54,109 using TCO's diluted average ownership
percentage of TRG of 69.0%.
(2) For the nine months ended September
30, 2020, 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 was recorded within Equity in
Income (Loss) of UJVs in our Statement of Operations and
Comprehensive Income (Loss). For the three months ended September
30, 2019, includes $4.8 million of promote fee income related to
Starfield Hanam less $0.9 million of income tax expense, which have
been recorded within Equity in Income (Loss) of UJVs and Income Tax
Expense, respectively, in our Statement of Operations and
Comprehensive Income (Loss).
(3) For the three months ended September
30, 2020, Adjusted Funds from Operations attributable to TCO's
common shareholders was $37,226 using TCO's diluted average
ownership percentage of TRG of 69.4%. For the three months ended
September 30, 2019, Adjusted Funds from Operations attributable to
TCO's common shareholders was $52,445 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 Shareholders to
Funds from Operations and Adjusted Funds from Operations
For the Nine Months Ended September 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
(44,269
)
61,512,816
(0.72
)
236,717
61,169,279
3.87
Add distributions to participating
securities of TRG
1,817
871,262
Add impact of share-based compensation
689
191,955
Net income (loss) attributable to TCO
common shareholders - diluted
(44,269
)
61,512,816
(0.72
)
239,223
62,232,496
3.84
Add TCO's additional income tax
expense
30
—
Add depreciation of TCO's additional
basis
4,444
0.07
4,851
0.08
Net income (loss) attributable to TCO
common shareholders, excluding step-up depreciation and additional
income tax expense
(39,795
)
61,512,816
(0.65
)
244,074
62,232,496
3.92
Add noncontrolling share of income (loss)
of TRG
(16,653
)
26,423,134
103,899
25,928,316
Add distributions to participating
securities of TRG
595
871,262
Net income (loss) attributable to
partnership unitholders and participating securities of TRG
(55,853
)
88,807,212
(0.63
)
347,973
88,160,812
3.95
Add (less) depreciation and
amortization:
Consolidated businesses at 100%
162,769
1.83
137,064
1.55
Depreciation of TCO's additional basis
(4,444
)
(0.05
)
(4,851
)
(0.06
)
Noncontrolling partners in consolidated
joint ventures
(5,834
)
(0.07
)
(6,169
)
(0.07
)
Share of UJVs
48,257
0.54
53,808
0.61
Non-real estate depreciation
(3,327
)
(0.03
)
(3,447
)
(0.04
)
Less gain on insurance recoveries - The
Mall of San Juan
(1,418
)
(0.02
)
Less gain on transfer of building and
improvements
(5,600
)
(0.06
)
(10,095
)
(0.11
)
Add beneficial share of impairment
charge
19,834
0.22
Less gains on partial dispositions of
ownership interests in UJVs, net of tax
(11,277
)
(0.13
)
(138,696
)
(1.57
)
Less gains on remeasurements of ownership
interests in UJVs
(14,146
)
(0.16
)
(145,010
)
(1.64
)
Less impact of share-based
compensation
(689
)
(0.01
)
Funds from Operations attributable to
partnership unitholders and participating securities of TRG
130,379
88,807,212
1.47
228,470
88,160,812
2.59
TCO's average ownership percentage of TRG
- basic (1)
70.1
%
70.2
%
Funds from Operations attributable to
TCO's common shareholders, excluding additional income tax
expense
91,346
1.47
160,544
2.59
Less TCO's additional income tax
expense
(30
)
—
Funds from Operations attributable to
TCO's common shareholders (1)
91,316
1.47
160,544
2.59
Funds from Operations attributable to
partnership unitholders and participating securities of TRG
130,379
88,807,212
1.47
228,470
88,160,812
2.59
Simon Property Group, Inc. transaction
costs
32,505
0.37
Costs associated with shareholder
activism
16,675
0.19
Restructuring charges
2,757
0.03
1,585
0.02
Costs related to Blackstone transactions
(2)
1,113
0.01
2,066
0.02
Taubman Asia President transition
costs
244
—
Promote fee, net of tax - Starfield Hanam
(3)
611
0.01
(3,961
)
(0.04
)
Fluctuation in fair value of equity
securities
933
0.01
(3,346
)
(0.04
)
Adjusted Funds from Operations
attributable to partnership unitholders and participating
securities of TRG
168,542
88,807,212
1.90
241,489
88,160,812
2.74
TCO's average ownership percentage of TRG
- basic (4)
70.1
%
70.2
%
Adjusted Funds from Operations
attributable to TCO's common shareholders, excluding additional
income tax expense
118,138
1.90
169,648
2.74
Less TCO's additional income tax
expense
(30
)
—
Adjusted Funds from Operations
attributable to TCO's common shareholders (1)
118,108
1.90
169,648
2.74
(1) For the nine months ended September
30, 2020, Funds from Operations attributable to TCO's common
shareholders was $90,175 using TCO's diluted average ownership
percentage of TRG of 69.3%. For the nine months ended September 30,
2019, Funds from Operations attributable to TCO's common
shareholders was $158,583 using TCO's diluted average ownership
percentage of TRG of 69.4%.
(2) For the nine months ended September
30, 2020, includes $1.1 million of deferred income tax expense
related to the Blackstone transactions, which has been recorded
within Income Tax Expense in our Statement of Operations and
Comprehensive Income (Loss). For the nine months ended September
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 Expense, respectively, in our Statement of
Operations and Comprehensive Income (Loss).
(3) For the nine months ended September
30, 2020, includes a reduction of $0.6 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 (Loss) of UJVs in our Statement of Operations and
Comprehensive Income (Loss). For the nine months ended September
30, 2019, includes $4.8 million of promote fee income related to
Starfield Hanam less $0.9 million of income tax expense, which have
been recorded within Equity in Income (Loss) of UJVs and Income Tax
Expense, respectively, in our Statement of Operations and
Comprehensive Income (Loss).
(4) For the nine months ended September
30, 2020, Adjusted Funds from Operations attributable to TCO's
common shareholders was $116,628 using TCO's diluted average
ownership percentage of TRG of 69.3%. For the nine months ended
September 30, 2019, Adjusted Funds from Operations attributable to
TCO's common shareholders was $167,578 using TCO's diluted average
ownership percentage of TRG of 69.4%.
TAUBMAN CENTERS, INC.
Table 6 - Reconciliation of Net Income
(Loss) to Beneficial Interest in EBITDA and Adjusted Beneficial
Interest in EBITDA
For the Periods Ended September 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)
(36,648
)
316,390
(41,959
)
363,005
Add (less) depreciation and
amortization:
Consolidated businesses at 100%
49,235
47,849
162,769
137,064
Noncontrolling partners in consolidated
joint ventures
(1,979
)
(1,821
)
(5,834
)
(6,169
)
Share of UJVs
16,224
17,662
48,257
53,808
Add (less) interest expense and income tax
expense:
Interest expense:
Consolidated businesses at 100%
33,052
37,695
101,254
112,590
Noncontrolling partners in consolidated
joint ventures
(2,733
)
(2,844
)
(8,277
)
(8,898
)
Share of UJVs
16,127
17,798
48,487
52,579
Income tax expense:
Consolidated businesses at 100%
37
2,021
545
4,924
Noncontrolling partners in consolidated
joint ventures
(189
)
Share of UJVs
933
991
1,362
2,680
Share of income tax expense on
dispositions of ownership interests
1,482
Less noncontrolling share of (income) loss
of consolidated joint ventures
308
(958
)
(1,015
)
(3,219
)
Beneficial interest in EBITDA
74,556
434,783
307,071
708,175
TCO's average ownership percentage of TRG
- basic
70.3
%
69.8
%
70.1
%
70.2
%
Beneficial interest in EBITDA
attributable to TCO
52,472
303,663
215,257
496,283
Beneficial interest in EBITDA
74,556
434,783
307,071
708,175
Add (less):
Simon Property Group, Inc. transaction
costs
17,060
32,505
Costs associated with shareholder
activism
675
16,675
Restructuring charges
2,395
876
2,757
1,585
Disposition costs related to Blackstone
transactions
487
Taubman Asia President transition
costs
244
Promote fee - Starfield Hanam
329
(4,820
)
638
(4,820
)
Fluctuation in fair value of equity
securities
(602
)
933
(3,346
)
Gains on partial dispositions of ownership
interests in UJVs
(138,696
)
(12,759
)
(138,696
)
Gains on remeasurements of ownership
interests in UJVs
(145,010
)
(14,146
)
(145,010
)
Gain on insurance recoveries - The Mall of
San Juan
(1,418
)
Gain on transfer of building and
improvements
(5,600
)
(10,095
)
(5,600
)
(10,095
)
Beneficial share of impairment charge
19,834
19,834
Adjusted Beneficial interest in
EBITDA
107,972
137,713
331,477
423,537
TCO's average ownership percentage of TRG
- basic
70.3
%
69.8
%
70.1
%
70.2
%
Adjusted Beneficial interest in EBITDA
attributable to TCO
75,846
96,182
232,365
297,496
TAUBMAN CENTERS, INC.
Table 7 - Reconciliation of Net Income
(Loss) to Net Operating Income (NOI)
For the Periods Ended September 30,
2020, 2019, and 2018
(in thousands of dollars)
Three Months Ended
Three Months Ended
2020
2019
Growth %
2019
2018
Growth %
Net income (loss)
(36,648
)
316,390
316,390
38,115
Add (less) depreciation and
amortization:
Consolidated businesses at 100%
49,235
47,849
47,849
46,307
Noncontrolling partners in consolidated
joint ventures
(1,979
)
(1,821
)
(1,821
)
(1,911
)
Share of UJVs
16,224
17,662
17,662
17,190
Add (less) interest expense and income tax
expense:
Interest expense:
Consolidated businesses at 100%
33,052
37,695
37,695
33,396
Noncontrolling partners in consolidated
joint ventures
(2,733
)
(2,844
)
(2,844
)
(2,984
)
Share of UJVs
16,127
17,798
17,798
17,093
Income tax expense:
Consolidated businesses at 100%
37
2,021
2,021
(996
)
Noncontrolling partners in consolidated
joint ventures
(51
)
Share of UJVs
933
991
991
1,023
Less noncontrolling share of loss (income)
of consolidated joint ventures
308
(958
)
(958
)
(1,564
)
Add EBITDA attributable to outside
partners:
EBITDA attributable to noncontrolling
partners in consolidated joint ventures
4,404
5,623
5,623
6,510
EBITDA attributable to outside partners in
UJVs
32,180
50,377
50,377
48,438
EBITDA at 100%
111,140
490,783
490,783
200,566
Add (less) items excluded from shopping
center NOI:
General and administrative expenses
7,048
9,632
9,632
8,530
Management, leasing, and development
services, net
(5
)
(32
)
(32
)
(384
)
Simon Property Group, Inc. transaction
costs
17,060
Restructuring charges
2,395
876
876
Costs associated with shareholder
activism
675
675
1,500
Straight-line of rents
1,661
(809
)
(809
)
(2,292
)
Nonoperating income, net
(13,498
)
(16,765
)
(16,765
)
(9,263
)
Gain on partial disposition of ownership
interest in UJV
(138,696
)
(138,696
)
Gain on remeasurement of ownership
interest in UJV
(145,010
)
(145,010
)
Impairment charge
39,668
Unallocated operating expenses and
other
3,850
6,749
6,749
8,131
NOI at 100% - total portfolio
169,319
207,403
207,403
206,788
Less - NOI of non-comparable centers
(14,677
)
(1)
(21,295
)
(1)
(18,731
)
(2)
(13,187
)
(3)
NOI at 100% - comparable
centers
154,642
186,108
(16.9)%
188,672
193,601
(2.5)%
Foreign currency exchange rate fluctuation
adjustment
(77
)
NOI at 100% - comparable centers
including lease cancellation income at constant currency
154,565
186,108
(16.9)%
NOI at 100% - comparable centers
154,642
186,108
188,672
193,601
Less lease cancellation income -
comparable centers
(19,843
)
(1,045
)
(1,045
)
(3,041
)
NOI at 100% - comparable centers
excluding lease cancellation income
134,799
185,063
(27.2)%
187,627
190,560
(1.5)%
Foreign currency exchange rate fluctuation
adjustment
(77
)
1,202
NOI at 100% - comparable centers
excluding lease cancellation income at constant currency
134,722
185,063
(27.2)%
188,829
190,560
(0.9)%
NOI at 100% - comparable centers
154,642
186,108
Less NOI of comparable centers
attributable to noncontrolling partners in consolidated joint
ventures and outside partners in UJVs
(48,832
)
(56,577
)
Beneficial interest in NOI - comparable
centers including lease cancellation income
105,810
129,531
(18.3)%
Beneficial interest in foreign currency
exchange rate fluctuation adjustment
(15
)
Beneficial interest in NOI - comparable
centers including lease cancellation income at constant
currency
105,795
129,531
(18.3)%
NOI at 100% - comparable centers excluding
lease cancellation income
134,799
185,063
Less NOI of comparable centers excluding
lease cancellation income attributable to noncontrolling partners
in consolidated joint ventures and outside partners in UJVs
(43,401
)
(56,271
)
Beneficial interest in NOI - comparable
centers excluding lease cancellation income
91,398
128,792
(29.0)%
Beneficial interest in foreign currency
exchange rate fluctuation adjustment
(15
)
Beneficial interest in NOI - comparable
centers excluding lease cancellation income at constant
currency
91,383
128,792
(29.0)%
NOI at 100% - total portfolio
169,319
207,403
207,403
206,788
Less lease cancellation income - total
portfolio
(25,953
)
(2,407
)
(2,407
)
(3,822
)
Less NOI attributable to noncontrolling
partners in consolidated joint ventures and outside partners in
UJVs excluding lease cancellation income - total portfolio
(45,202
)
(56,393
)
(56,393
)
(55,345
)
Beneficial interest in NOI - total
portfolio excluding lease cancellation income
98,164
148,603
(33.9)%
148,603
147,621
0.7%
(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.
(3) Includes Beverly Center, 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 Periods Ended September 30,
2020, 2019, and 2018
(in thousands of dollars)
Year to Date
Year to Date
2020
2019
Growth %
2019
2018
Growth %
Net income (loss)
(41,959
)
363,005
363,005
102,804
Add (less) depreciation and
amortization:
Consolidated businesses at 100%
162,769
137,064
137,064
124,325
Noncontrolling partners in consolidated
joint ventures
(5,834
)
(6,169
)
(6,169
)
(5,480
)
Share of UJVs
48,257
53,808
53,808
51,570
Add (less) interest expense and income tax
expense:
Interest expense:
Consolidated businesses at 100%
101,254
112,590
112,590
97,242
Noncontrolling partners in consolidated
joint ventures
(8,277
)
(8,898
)
(8,898
)
(9,023
)
Share of UJVs
48,487
52,579
52,579
51,107
Income tax expense:
Consolidated businesses at 100%
545
4,924
4,924
(784
)
Noncontrolling partners in consolidated
joint ventures
(189
)
(189
)
(134
)
Share of UJVs
1,362
2,680
2,680
2,387
Share of income tax expense on disposition
of ownership interests
1,482
Less noncontrolling share of income of
consolidated joint ventures
(1,015
)
(3,219
)
(3,219
)
(4,388
)
Add EBITDA attributable to outside
partners:
EBITDA attributable to noncontrolling
partners in consolidated joint ventures
15,126
18,475
18,475
19,025
EBITDA attributable to outside partners in
UJVs
122,990
146,640
146,640
145,671
EBITDA at 100%
445,187
873,290
873,290
574,322
Add (less) items excluded from shopping
center NOI:
General and administrative expenses
22,587
26,762
26,762
25,545
Management, leasing, and development
services, net
(243
)
(1,118
)
(1,118
)
(1,294
)
Simon Property Group, Inc. transaction
costs
32,505
Restructuring charges
2,757
1,585
1,585
(423
)
Costs associated with shareholder
activism
16,675
16,675
10,000
Straight-line of rents
4,729
(5,993
)
(5,993
)
(9,706
)
Nonoperating income, net
(13,960
)
(33,449
)
(33,449
)
(15,349
)
Gains on partial dispositions of ownership
interests in UJVs
(12,759
)
(138,696
)
(138,696
)
Gains on remeasurements of ownership
interests in UJVs
(14,146
)
(145,010
)
(145,010
)
Impairment charge
39,668
Unallocated operating expenses and
other
13,826
22,871
22,871
24,654
NOI at 100% - total portfolio
520,151
616,917
616,917
607,749
Less - NOI of non-comparable centers
(41,434
)
(1)
(57,636
)
(1)
(48,662
)
(2)
(32,015
)
(3)
NOI at 100% - comparable
centers
478,717
559,281
(14.4)%
568,255
575,734
(1.3)%
Foreign currency exchange rate fluctuation
adjustment
2,075
NOI at 100% - comparable centers
including lease cancellation income at constant currency
480,792
559,281
(14.0)%
NOI at 100% - comparable centers
478,717
559,281
568,255
575,734
Less lease cancellation income -
comparable centers
(26,938
)
(6,488
)
(7,480
)
(16,785
)
NOI at 100% - comparable centers
excluding lease cancellation income
451,779
552,793
(18.3)%
560,775
558,949
0.3%
Foreign currency exchange rate fluctuation
adjustment
2,075
4,572
NOI at 100% - comparable centers
excluding lease cancellation income at constant currency
453,854
552,793
(17.9)%
565,347
558,949
1.1%
NOI at 100% - comparable centers
478,717
559,281
Less NOI of comparable centers
attributable to noncontrolling partners in consolidated joint
ventures and outside partners in UJVs
(145,357
)
(169,181
)
Beneficial interest in NOI - comparable
centers including lease cancellation income
333,360
390,100
(14.5)%
Beneficial interest in foreign currency
exchange rate fluctuation adjustment
436
Beneficial interest in NOI - comparable
centers including lease cancellation income at constant
currency
333,796
390,100
(14.4)%
NOI at 100% - comparable centers excluding
lease cancellation income
451,779
(1)
552,793
(1)
Less NOI of comparable centers excluding
lease cancellation income attributable to noncontrolling partners
in consolidated joint ventures and outside partners in UJVs
(138,580
)
(167,770
)
Beneficial interest in NOI - comparable
centers excluding lease cancellation income
313,199
385,023
(18.7)%
Beneficial interest in foreign currency
exchange rate fluctuation adjustment
436
Beneficial interest in NOI - comparable
centers excluding lease cancellation income at constant
currency
313,635
385,023
(18.5)%
NOI at 100% - total portfolio
520,151
616,917
616,917
607,749
Less lease cancellation income - total
portfolio
(33,695
)
(10,407
)
(10,407
)
(19,667
)
Less NOI attributable to noncontrolling
partners in consolidated joint ventures and outside partners in
UJVs excluding lease cancellation income - total portfolio
(145,973
)
(165,307
)
(165,307
)
(162,184
)
Beneficial interest in NOI - total
portfolio excluding lease cancellation income
340,483
441,203
(22.8)%
441,203
425,898
3.6%
(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.
(3) Includes Beverly Center, The Mall of
San Juan, and Taubman Prestige Outlets Chesterfield.
TAUBMAN CENTERS, INC.
Table 9 - Debt Summary
As of September 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
9/30/2020
9/30/2020
(a)
9/30/2020
(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
74.0
74.0
4.37
%
Great Lakes Crossing Outlets
A
1/6/2023
189.6
189.6
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
288.8
288.8
4.85
%
2,102.5
1,827.5
3.81
%
3.80
%
Consolidated Floating Rate
Debt:
The Mall at Green Hills
I
12/1/2021
150.0
150.0
1.61
%
(c)
1.45%
(c)
International Market Place
93.50
%
I
8/9/2021
(d)
250.0
233.8
2.31
%
2.15%
(d)
TRG $65M Revolving Credit Facility
I
4/24/2021
0.0
(e)
0.0
1.55
%
(e)
1.40%
TRG $1.1B Revolving Credit Facility
I
2/1/2024
(f)
845.0
845.0
2.10
%
(f)(i)
1.60%
(f)(i)
1,245.0
1,228.8
2.08
%
2.08
%
Consolidated Floating Rate Debt Swapped
to Fixed:
TRG $275M Term Loan
I
2/1/2025
275.0
275.0
3.94
%
(g)
1.80%
(g)(i)
TRG $250M Term Loan
I
3/31/2023
250.0
250.0
4.92
%
(h)
1.90%
(h)(i)
TRG $1.1B Revolving Credit Facility
(portion swapped)
I
2/1/2024
(f)
25.0
25.0
3.74
%
(f)
1.60%
(f)(i)
U.S. Headquarters
I
3/1/2024
12.0
12.0
3.49
%
(j)
562.0
562.0
4.35
%
4.35
%
Total Consolidated Deferred Financing
Costs, Net
(11.9
)
(11.5
)
Total Consolidated
3,897.5
3,606.7
Weighted Rate (excluding deferred
financing costs)
3.34
%
3.30
%
Joint Ventures Fixed Rate Debt:
CityOn.Xi'an
25.00
%
A
3/14/2029
156.1
(k)
39.0
6.00
%
CityOn.Zhengzhou
24.50
%
A
3/22/2032
76.9
(l)
18.8
5.60
%
(l)
Country Club Plaza
50.00
%
A
(m)
4/1/2026
312.9
156.5
3.85
%
Fair Oaks Mall
50.00
%
A
5/10/2023
251.8
125.9
5.32
%
The Gardens Mall
48.50
%
I - until 8/15/2021
(n)
7/15/2025
(n)
195.0
104.8
(n)
4.13
%
(n)
International Plaza
50.10
%
A
12/1/2021
293.1
146.9
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
239.7
(o)
117.5
2.16
%
(o)
Starfield Hanam
17.15
%
I
11/25/2020
266.6
(p)
45.7
2.58
%
(p)
Sunvalley
50.00
%
A
9/1/2022
162.0
81.0
4.44
%
Taubman Land Associates
50.00
%
A
11/1/2022
20.2
10.1
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
(q)
4/15/2026
165.0
82.5
3.86
%
Westfarms
78.94
%
A
7/1/2022
270.2
213.3
4.50
%
3,139.7
1,507.0
4.05
%
4.09
%
Joint Venture Floating Rate Debt
Swapped to Fixed:
International Plaza
50.10
%
A
12/1/2021
155.8
78.1
3.58
%
(r)
155.8
78.1
3.58
%
3.58
%
Total Joint Venture Deferred Financing
Costs, Net
(7.0
)
(3.4
)
Total Joint Venture
3,288.4
1,581.6
Weighted Rate (excluding deferred
financing costs)
4.03
%
4.07
%
TRG Beneficial Interest Totals:
Fixed Rate Debt
5,242.1
3,334.4
3.95
%
3.93
%
Floating Rate Debt
1,245.0
1,228.8
2.08
%
2.08
%
Floating Rate Debt Swapped to Fixed
717.8
640.1
4.19
%
4.26
%
Total Deferred Financing Costs, Net
(19.0
)
(14.9
)
Total
7,185.9
5,188.3
Weighted Rate (excluding deferred
financing costs)
3.65
%
3.54
%
Weighted Average Maturity Fixed
Debt
5.6
Weighted Average Maturity Total
Debt
4.8
TAUBMAN CENTERS, INC.
Table 9 - Debt Summary
(continued)
As of September 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
54.3
2.86
%
0.5
3.58
%
(1.1
)
53.7
2.87
%
2021
176.6
4.78
%
383.8
2.03
%
77.6
3.58
%
(3.8
)
634.1
2.98
%
2022
318.2
4.46
%
(2.9
)
315.3
4.46
%
2023
386.7
4.32
%
250.0
4.92
%
(2.2
)
634.5
4.56
%
2024
245.7
4.00
%
845.0
2.10
%
37.0
3.66
%
(2.0
)
1,125.7
2.57
%
2025
228.9
3.18
%
275.0
3.94
%
(1.2
)
502.8
3.59
%
2026
366.4
3.75
%
(1.0
)
365.4
3.75
%
2027
1,015.3
3.51
%
(0.7
)
1,014.6
3.51
%
2028
531.0
4.35
%
531.0
4.35
%
2029
5.4
5.84
%
5.4
5.84
%
2030
2.3
5.60
%
2.3
5.60
%
2031
2.4
5.60
%
2.4
5.60
%
2032
1.2
5.60
%
1.2
5.60
%
3,334.4
3.93
%
1,228.8
2.08
%
640.1
4.26
%
(14.9
)
5,188.3
3.54
%
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%
(u)
(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 November 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%. From December
2020 to December 2021, the LIBOR rate is capped at 2.00%, resulting
in a maximum interest rate of 4.75%.
(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.
(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.
(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%.
(i)
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; our $275 million unsecured term loan will bear interest at the
maximum total leverage ratio level of LIBOR plus 1.80%; and our
$250 million unsecured term loan will bear interest at the maximum
total leverage ratio level of LIBOR plus 1.90%.
(j)
Debt is swapped to an effective
rate of 3.49% until maturity.
(k)
1.2 billion Renminbi (RMB)
($176.7 million USD equivalent at September 30, 2020) non-recourse
facility. Scheduled principal payments have been paid on the
facility since September 2019. Approximately $1.5 million USD
remains available for future borrowings using the September 30,
2020 exchange rate.
(l)
1.2 billion RMB ($176.7 million
USD equivalent at September 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.
(m)
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.
(n)
Beneficial interest in debt
includes $10.2 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.
(o)
300 billion Korean Won (KRW)
($257.6 million USD equivalent at September 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.
(p)
520 billion KRW ($446.4 million
USD equivalent at September 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.
In October 2020, this loan was refinanced with a 600 billion KRW
(approximately $530 million USD equivalent using current exchange
rates), non-recourse five-year, 2.38% fixed rate loan.
(q)
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.
(r)
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.
(s)
Principal amortization includes
amortization of purchase accounting adjustments.
(t)
Represents principal amortization
of floating rate debt swapped to fixed rate debt as of September
30, 2020. Note that not all of this debt may be swapped at these
rates through maturity. See footnote (f), (g) and (h) above.
(u)
Stamford Town Center was sold in
October 2020.
TAUBMAN CENTERS, INC.
Table 10 - Owned Centers
As of September 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, Polo Ralph
707,000
2015
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, Nordstrom Rack, Planet
Fitness,
533,000
(Detroit Metropolitan Area)
Round 1 Bowling and Amusement, Sea
Life
The Mall at Green Hills
Dillard's, Macy's, Nordstrom
998,000
(1)
1955/2011/
2011
100%
Nashville, TN
493,000
2019
International Market Place
Saks Fifth Avenue
340,000
2016
93.5%
Waikiki, Honolulu, HI
261,000
The Mall of San Juan
627,000
(2)
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 (3),
Macy's,
1,520,000
(4)
1977/1978/
100%
Novi, MI (Detroit Metropolitan Area)
Nordstrom
550,000
2007/2008
Total GLA
10,362,000
Total Mall GLA
5,223,000
TRG % of Total GLA
9,790,000
TRG % of Total Mall GLA
4,870,000
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
(5)
947,000
(6)
1922/1977/
2016
50%
Kansas City, MO
729,000
2000/2015
Fair Oaks Mall
JCPenney, Lord & Taylor (3), Macy's
(two locations)
1,558,000
(7)
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
Saks Fifth Avenue
342,000
1992/2006/
2003
50%
Naples, FL
202,000
2008
Westfarms
JCPenney, Lord & Taylor (3), 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
24,797,000
Grand Total Mall GLA
12,448,000
TRG % of Total GLA
16,311,000
TRG % of Total Mall GLA
7,968,000
(1) GLA does not reflect the full
total incremental GLA to be added in connection with the
redevelopment project at the center.
(2) 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.
(3) GLA includes the former Saks
Fifth Avenue store, which closed in September 2016. A portion of
this space opened as Mall GLA in 2018, while the remaining 31,000
square feet of GLA of the space is currently under redevelopment as
coworking office space.
(4) GLA includes approximately
228,000 square feet of GLA related to the former Sears space, which
closed in March 2019.
(5) In 2018, Nordstrom announced
plans to relocate a store to the center. The new, approximately
116,000-square-foot store is expected to open in Fall 2022.
(6) GLA includes 218,000 square
feet of office property.
(7) 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 September 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)
8
1,233
5.6
%
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
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
57
9,746
44.3
%
(5)
(1)
Excludes one Bloomingdale's
Outlet store at a value center.
(2)
Excludes one Nordstrom Rack at an
outlet center.
(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)
Percentages may not add due to
rounding.
TAUBMAN CENTERS, INC.
Table 12 - Major Tenants in Owned
Portfolio
As of September 30, 2020
Tenant
Number of Stores
Square Footage
% Mall GLA
Forever 21 (Forever 21, XXI Forever)
16
448,690
3.6
%
H&M
19
416,991
3.3
%
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)
39
277,348
2.2
%
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
%
LVMH (Sephora, Louis Vuitton, Dior, Fendi,
Loro Piana, Bvlgari, Kenzo, and others)
43
184,815
1.5
%
Restoration Hardware
5
179,954
1.4
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201109006048/en/
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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