Taubman Centers Announces Strong Third Quarter Results

            Taubman Centers Announces Strong Third Quarter Results

- Net Operating Income (NOI) Excluding Lease Cancellation Income Up 7.4%

- Three New U.S. Shopping Centers Under Construction

- First Asia Projects Underway

- 2012 Guidance Increased on Strong NOI and Operating Results

PR Newswire

BLOOMFIELD HILLS, Mich., Oct. 24, 2012

BLOOMFIELD HILLS, Mich., Oct. 24, 2012 /PRNewswire/ --Taubman Centers, Inc.
(NYSE:TCO) today reported financial results for the third quarter of 2012.

(Logo: http://photos.prnewswire.com/prnh/20080428/CLM116LOGO)

"We attribute our strong performance to increased rents, recoveries, and
occupancy in our centers," said Robert S. Taubman, chairman, president and
chief executive officer of Taubman Centers. "Core growth is outstanding. In
addition, this quarter we benefitted from a third party leasing success fee
and continued solid performance from our newest center, City Creek Center
(Salt Lake City, Utah). We're delivering tremendous results."

                       September 30, September 30, September 30, September 30,
                       2012          2011          2012          2011

                       Three Months  Three Months  Nine Months   Nine Months
                       Ended         Ended         Ended         Ended
Net income allocable                                          
to common shareholders
(EPS) per diluted      $0.35         $0.14         $0.92         $0.48
share 
Funds from Operations                             
(FFO) per diluted                    $0.63                       $1.88
share                  $0.79                       $2.26
                                                                
Growth rate            25.4%                       20.2%
Adjusted Funds from                                           
Operations (Adjusted
FFO) per diluted       $0.86         $0.65         $2.33         $1.90
share^(1)
                       32.3%                      22.6%         
Growth rate
Adjusted FFO per
diluted share                                                 
(excluding The Pier
Shops and Regency      $0.86         $0.73         $2.33         $2.08
Square)^(1)
                       17.8%                      12.0%         
Growth rate
(1) Adjusted FFO for the three and nine months ended September 30, 2012
excludes charges related to the redemption of the Series G and H Preferred
Stock. Adjusted FFO for the three and nine months ended September 30, 2011
excludes costs related to the acquisitions of The Mall at Green Hills
(Nashville, Tenn.), The Gardens on El Paseo/El Paseo Village (Palm Desert,
Calif.), and Taubman TCBL (Beijing, China).



Sales, Leased Space, Occupancy, Rent, and NOI Up

The company's 12-month trailing mall tenant sales per square foot reached
$681, another record for the company and up 10.7 percent from September 30,
2011. Mall tenant sales per square foot increased 6.2 percent for the three
months ended September 30, 2012 and 9.3 percent for the nine months ended
September 30, 2012.

Leased space in comparable centers for Taubman's portfolio was 92.4 percent on
September 30, 2012, up 1 percent from 91.4 percent on September 30, 2011.
Ending occupancy in comparable centers was 90.4 percent on September 30, 2012,
up 1.9 percent from 88.5 percent on September 30, 2011.

Average rent per square foot for the third quarter of 2012 was $46.85, up 3.5
percent from $45.28 in the third quarter of 2011. For the nine months ended
September 30, 2012, average rent per square foot was $46.57, up from $45.29
for the nine months ended September 30, 2011.

NOI excluding lease cancellation income was up 7.4 percent for the three
months ended September 30, 2012, bringing 2012 year-to-date growth to 8.3
percent.

External Growth Update

The company continues to make significant progress on its multi-pronged growth
strategy, including the following:

  oOutlet Center Development

    In July, Taubman held an official groundbreaking on Taubman Prestige
    Outlets Chesterfield (Chesterfield, Mo.). The company announced in
    September that construction is being accelerated to meet Missouri's 2013
    tax-free back-to-school holiday weekend by opening on Friday, August 2,
    2013. Site improvements began in April and building walls have been raised
    throughout the site. Leasing continues to make good progress.



  oAsia Development

    In August, the company concluded due diligence and made an additional
    investment in a joint venture with Shinsegae Group, South Korea's largest
    retailer. The joint venture will build, lease, and manage a western-style
    1.7 million square foot shopping mall in Hanam, Gyeonggi Province, South
    Korea, an eastern suburb of Seoul. This world class project will be the
    largest center in Korea. Taubman's total investment including capitalized
    interest is expected to be about $330 million, representing a 30% interest
    in the center, which is expected to cost about $1 billion. The center will
    be anchored by a 525,000 square foot Shinsegae department store and will
    feature a luxury wing and in-line stores that will be dominated by
    international flagships, many of which will be the largest in Korea. Hanam
    Union Square is expected to open in 2015.

    Also in August, Taubman Asia announced its first retail development in
    China, a joint venture with Beijing Wangfujing Department Store (Group)
    Co., Ltd (Wangfujing). The joint venture will own a controlling interest
    in and will lease and manage a shopping center to be located at Xi'an
    Saigao City Plaza, a large-scale mixed-use development in Xi'an, China.
    The remaining ownership of the shopping center will be held by Shaanxi
    Fuli Real Estate Development Co. Ltd, that is constructing the broader
    project. Anchored by a Wangfujing department store, the seven-level Xi'an
    shopping center will be part of a 5.9 million square feet (gross building
    area) mixed-use project and is expected to feature a cinema, restaurants,
    and approximately 300 international and local specialty stores. The center
    is scheduled to open in the third quarter of 2015.



  oU.S. Traditional Center Development

    In September, the company broke ground on The Mall of San Juan (San Juan,
    Puerto Rico). Taubman will develop, lease and manage the 650,000
    square-foot two-level upscale shopping center that will feature the first
    Saks Fifth Avenue and Nordstrom in the Caribbean and approximately 100
    stores and restaurants. The Mall of San Juan is anticipated to open in
    late 2014.

    On October 15, Taubman held an official groundbreaking on The Mall at
    University Town Center (Sarasota, Fla.) and announced the center will open
    on October 16, 2014. The shopping center will be a state-of-the-art,
    two-level, enclosed mall, anchored by Saks Fifth Avenue, Dillard's, and
    Macy's, and will include more than 100 specialty stores and restaurants.

Balance Sheet Strengthened

In August, Taubman Centers issued 2,875,000 common shares, including the
exercise of the underwriter's option, in an underwritten public offering. The
net proceeds of $209 million were used to reduce outstanding borrowings under
the company's $715 million revolving lines of credit. This was just the third
secondary common equity raise for the company since its initial public
offering in November 1992.

In August, the company issued $192.5 million of perpetual 6.5% Series J
Cumulative Redeemable Preferred Stock (NYSE: TCO PR J) at a price of $25.00
per share. Proceeds were used to redeem the company's $100 million 8% Series G
Cumulative Redeemable Preferred Stock (NYSE: TCO PR G) and its $87 million
7.625% Series H Cumulative Redeemable Preferred Stock (NYSE: TCO PR H). Upon
redemption, the company recognized a $6.4 million charge representing the
difference between the face value and the book value of the preferred stock
redeemed.

Also in August, the company completed a $190 million, 10-year, non-recourse
financing on its 50 percent owned Sunvalley (Concord, Calif.) shopping center.
The loan bears interest at an all-in fixed rate of 4.47%. The new loan
replaces an amortizing loan with a rate of 5.67% and a balance of $115 million
at the time of refinancing.

As a result of these transactions, on September 30, 2012, the company's ratio
of debt to total market capitalization was 30.5%, an all-time low for the
company.

In early October, the refinancing of The Mall at Millenia (Orlando, Fla.) was
completed. The new  $350 million, 12-year, non-recourse financing bears
interest at an all-in fixed rate of 4.05%. This replaces an amortizing loan
with a rate of 5.46% and a balance of $197 million at the time of refinancing.

2012 Guidance Increased on Strong NOI

The company is increasing its guidance on 2012 FFO per diluted share to $3.18
to $3.23 and 2012 Adjusted FFO per diluted share to the range of $3.27 to
$3.32. 2012 Adjusted FFO guidance excludes charges related to the redemption
of preferred stock and the charge relating to the early refinancing of the
loan on The Mall at Millenia. The company is also increasing its guidance on
2012 EPS to $1.30 to $1.37 per diluted share. This guidance now assumes
comparable center NOI growth, excluding lease cancellation income, of about 6
percent for the year, up from a range of 5 to 6 percent previously.

The company's previous guidance on 2012 FFO per diluted share was a range of
$3.13 to $3.18, its previous guidance on 2012 Adjusted FFO per diluted share
was a range of $3.22 to $3.27, and its previous guidance on 2012 EPS was a
range of $1.20 to $1.30 per diluted share.

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:

  oIncome Statements
  oEarnings Reconciliations
  oChanges in Funds from Operations and Earnings Per Share
  oComponents of Other Income, Other Operating Expense, and Nonoperating
    Income
  oRecoveries Ratio Analysis
  oBalance Sheets
  oDebt Summary
  oOther Debt, Equity and Certain Balance Sheet Information
  oConstruction
  oAcquisitions
  oCapital Spending
  oOperational Statistics
  oOwned Centers
  oMajor Tenants in Owned Portfolio
  oAnchors in Owned Portfolio
  oOperating Statistics Glossary

Investor Conference Call

The company will host a conference call at 10:00 AM Eastern Daylight Time on
Thursday, October 25 to discuss these results, business conditions and the
company's outlook for the remainder of 2012. 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 an S&P MidCap 400 Real Estate Investment Trust engaged in
the ownership, management and/or leasing of 28 regional, super regional and
outlet shopping centers in the U.S. and Asia. Taubman is currently developing
Taubman Prestige Outlets Chesterfield in Chesterfield, Missouri; The Mall at
University Town Center in Sarasota, Florida; The Mall of San Juan in San Juan,
Puerto Rico; and shopping malls in Xi'an, China and Hanam, South Korea.
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," "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 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. The forward-looking statements included in this release are made
as of the date hereof. Except as required by law, we assume no obligation to
update these forward-looking statements, even if new information becomes
available in the future. Actual results may differ materially from those
expected because of various risks and uncertainties, including, but not
limited to the global credit environment and the continuing impacts of the
recent U.S. recession, other changes in general economic and real estate
conditions, changes in the interest rate environment and the availability of
financing, fluctuations of foreign currency, adverse changes in the retail
industry, general development risks, and integration and other acquisition
risks. 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, 2012 and 2011
(in thousands of dollars,
except as indicated)
                                Three Months Ended     Year to Date
                                2012        2011        2012        2011
Income from continuing          45,061      33,549      108,686     90,977
operations
Income (loss) from discontinued             (11,681)                (24,375)
operations
Net income                      45,061      21,868      108,686     66,602
Noncontrolling share of income  (2,079)     (4,327)     (6,788)     (10,497)
of consolidated joint ventures
Noncontrolling share of income  (10,216)    (7,964)     (27,105)    (22,113)
of TRG - continuing operations
Noncontrolling share of loss of             3,539                   7,493
TRG - discontinued operations
TRG series F preferred                      (615)                   (1,845)
distributions
Preferred stock dividends       (10,663)    (3,658)     (17,980)    (10,975)
Distributions to participating  (403)       (382)       (1,209)     (1,144)
securities of TRG
Net income attributable to
Taubman Centers, Inc. common    21,700      8,461       55,604      27,521
shareowners
Net income per common share -   0.36        0.15        0.94        0.49
basic
Net income per common share -   0.35        0.14        0.92        0.48
diluted
Beneficial interest in EBITDA - 121,969     100,979     342,106     295,190
Combined (1)
Adjusted Beneficial interest in 121,969     102,660     342,106     296,871
EBITDA- Combined (1)
Funds from Operations(1)        70,477      54,126      199,149     158,081
Funds from Operations           49,071      37,729      137,676     109,292
attributable to TCO (1)
Funds from Operations per       0.81        0.65        2.33        1.93
common share - basic(1)
Funds from Operations per       0.79        0.63        2.26        1.88
common share - diluted (1)
Adjusted Funds from Operations  76,889      55,807      205,561     159,762
(1)
Adjusted Funds from Operations  53,535      38,901      142,108     110,464
attributable to TCO (1)
Adjusted Funds from Operations  0.88        0.67        2.40        1.95
per common share - basic(1)
Adjusted Funds from Operations  0.86        0.65        2.33        1.90
per common share - diluted (1)
Weighted average number of
common shares outstanding -     60,571,612  57,890,006  59,207,828  56,554,268
basic
Weighted average number of
common shares outstanding -     62,025,322  59,635,557  60,716,518  58,137,149
diluted
Common shares outstanding at    61,698,618  57,891,337
end of period
Weighted average units -        86,994,524  83,048,892  85,655,085  81,797,910
Operating Partnership - basic
Weighted average units -        89,319,495  85,665,704  88,035,037  84,252,063
Operating Partnership - diluted
Units outstanding at end of     88,120,226  83,050,223
period - Operating Partnership
Ownership percentage of the
Operating Partnership at end of 70.0%       69.7%
period
Number of owned shopping        24          23          24          23
centers at end of period
Operating Statistics (2):
Net Operating Income excluding
lease cancellation income -     7.4%                    8.3%
growth % (3)
Mall tenant sales - all centers 1,378,384   1,197,351   4,128,642   3,494,538
(4)
Mall tenant sales - comparable  1,289,569   1,197,351   3,845,903   3,494,538
(3)(4)
Ending occupancy - all centers  90.4%       88.5%       90.4%       88.5%
Ending occupancy -              90.4%       88.5%       90.4%       88.5%
comparable(3)
Average occupancy - all         90.1%       88.6%       89.9%       88.4%
centers
Average occupancy - comparable  90.2%       88.6%       89.9%       88.4%
(3)
Leased space - all centers      92.6%       91.4%       92.6%       91.4%
Leased space - comparable(3)    92.4%       91.4%       92.4%       91.4%
All centers:
Mall tenant occupancy costs as
a percentage of tenant sales -  14.0%       14.1%       13.4%       14.2%
Consolidated Businesses (4)
Mall tenant occupancy costs as
a percentage of tenant sales -  13.5%       13.0%       12.8%       12.9%
Unconsolidated Joint Ventures
(4)
Mall tenant occupancy costs as
a percentage of tenant sales -  13.9%       13.7%       13.2%       13.8%
Combined (4)
Comparable centers:
Mall tenant occupancy costs as
a percentage of tenant sales -  14.1%       14.1%       13.7%       14.2%
Consolidated Businesses (3)(4)
Mall tenant occupancy costs as
a percentage of tenant sales -  13.5%       13.0%       12.8%       12.9%
Unconsolidated Joint Ventures
(4)
Mall tenant occupancy costs as
a percentage of tenant sales -  13.9%       13.7%       13.4%       13.8%
Combined (3)(4)
Average rent per square foot -  47.43       45.72       47.18       45.48
Consolidated Businesses (3)
Average rent per square foot -  45.61       44.36       45.27       44.91
Unconsolidated Joint Ventures
Average rent per square foot -  46.85       45.28       46.57       45.29
Combined (3)



    Beneficial Interest in EBITDA represents the Operating Partnership's share
    of the earnings before interest, income taxes, and depreciation and
    amortization of its consolidated and unconsolidated businesses. The
(1) 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.
    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 (includes rental income excluding straight-line
    adjustments of minimum rent) less maintenance, taxes, utilities,
    promotion, ground rent (including straight-line adjustments), and other
    property operating expenses. Since NOI excludes general and administrative
    expenses, pre-development charges, interest income and expense,
    depreciation and amortization, impairment charges, restructuring charges
    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 Company
    also uses 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. The Company generally
    provides 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.
    The National Association of Real Estate Investment Trusts (NAREIT) defines
    Funds from Operations (FFO) as net income (computed in accordance with
    Generally Accepted Accounting Principles (GAAP)), excluding gains (or
    losses) from extraordinary items and sales of properties and impairment
    write-downs of depreciable real estate, 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.
    The Company primarily uses FFO in measuring operating performance and in
    formulating corporate goals and compensation. The Company 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. The Company believes
    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. For the three and nine month period ended September 30,
    2012, FFO was adjusted for charges related to the redemption of Series G
    and H Preferred Stock. For the three and nine month period ended
    September 30, 2011, EBITDA and FFO were adjusted for costs related to the
    acquisitions of The Mall at Green Hills, The Gardens on El Paseo and El
    Paseo Village, and Taubman TCBL. In the reconciliations in Tables 4 and 5
    of this Press Release, the Company has separately presented the prior year
    impacts of The Pier Shops and Regency Square, as the titles for these
    centers were transferred to the lenders and operations of these centers
    have been reclassified to discontinued operations.
    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 the same definitions. These measures should
    not be considered alternatives to net income or as an indicator of the
    Company's operating performance. Additionally, these measures do not
    represent cash flows from operating, investing or financing activities as
    defined by GAAP.
(2) Statistics exclude The Pier Shops and Regency Square.
(3) Statistics exclude non-comparable centers.
(4) Based on reports of sales furnished by mall tenants.



TAUBMAN CENTERS,
INC.
Table 2 - Income
Statement
For the Three
Months Ended
September 30, 2012
and 2011
(in thousands of
dollars)
                   2012                           2011
                                 UNCONSOLIDATED                UNCONSOLIDATED
                   CONSOLIDATED  JOINT            CONSOLIDATED  JOINT
                   BUSINESSES                     BUSINESSES
                                 VENTURES (1)                  VENTURES (1)
REVENUES:
    Minimum rents  99,564        40,016           84,929        38,211
    Percentage     6,315         2,366            4,737         1,815
    rents
    Expense        66,633        26,224           57,231        23,387
    recoveries
    Management,
    leasing, and   10,234                         5,083
    development
    services
    Other          6,793         1,829            6,575         1,473
        Total      189,539       70,435           158,555       64,886
        revenues
EXPENSES:
    Maintenance,
    taxes,         53,253        18,588           45,200        16,448
    utilities, and
    promotion
    Other          16,128        3,581            15,255        3,697
    operating
    Management,
    leasing, and   6,165                          2,889
    development
    services
    General and    9,571                          7,709
    administrative
    Acquisition                                   1,681
    costs
    Interest       34,943        16,617           30,064        15,619
    expense
    Depreciation
    and            36,414        9,095            33,054        9,281
    amortization
        Total      156,474       47,881           135,852       45,045
        expenses
Nonoperating       56            18               96            111
income
                   33,121        22,572           22,799        19,952
Income tax expense (732)                          (208)
Equity in income
of Unconsolidated  12,672                         10,958
Joint Ventures
Income from
continuing         45,061                         33,549
operations
Discontinued
operations (2):
    EBITDA                                        34
    Interest                                      (6,354)
    expense
    Depreciation
    and                                           (5,361)
    amortization
Income (loss) from
discontinued                                      (11,681)
operations
Net income        45,061                         21,868
Net income
attributable to
noncontrolling
interests:
    Noncontrolling
    share of
    income of      (2,079)                        (4,327)
    consolidated
    joint
    ventures
    TRG series F
    preferred                                     (615)
    distributions
    Noncontrolling
    share of
    income of TRG  (10,216)                       (7,964)
    - continuing
    operations
    Noncontrolling
    share of loss
    of TRG -                                      3,539
    discontinued
    operations
Distributions to
participating      (403)                          (382)
securities of TRG
Preferred stock    (10,663)                       (3,658)
dividends (3)
Net income
attributable to
Taubman Centers,   21,700                         8,461
Inc. common
shareowners
SUPPLEMENTAL
INFORMATION:
    EBITDA - 100% 104,478       48,284           85,951        44,852
    EBITDA -
    outside        (9,257)       (21,536)         (9,498)       (20,326)
    partners'
    share
    Beneficial
    interest in    95,221        26,748           76,453        24,526
    EBITDA
    Beneficial
    interest       (30,718)      (8,765)          (33,651)      (8,082)
    expense
    Beneficial
    income tax     (667)                          (208)
    expense
    Non-real
    estate         (679)                          (639)
    depreciation
    Preferred
    dividends and  (10,663)                       (4,273)
    distributions
    Funds from
    Operations     52,494        17,983           37,682        16,444
    contribution
    Net
    straight-line
    adjustments to
    rental
    revenue,
    recoveries,
     and ground
    rent expense   1,194         187              329           86
    at TRG %
    Purchase
    accounting     212
    adjustments -
    minimum rents
    Purchase
    accounting
    adjustments -  (858)
    interest
    expense
    reduction
    With the exception of the Supplemental Information, amounts include 100% of
(1) 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 Company's ownership interest. In its consolidated financial
    statements, the Company accounts for its investments in the Unconsolidated
    Joint Ventures under the equity method.
(2) Includes the operations of Regency Square and The Pier Shops.
    Preferred dividends for the three months ended September 30, 2012 include
(3) charges of $3.3 million and $3.1 million incurred in connection with the
    $100 million redemption of the Series G Preferred Stock and the $87 million
    redemption of the Series H Preferred Stock, respectively.



TAUBMAN CENTERS,
INC.
Table 3 - Income
Statement
For the Nine
Months Ended
September 30, 2012
and 2011
(in thousands of
dollars)
                   2012                           2011
                                 UNCONSOLIDATED                UNCONSOLIDATED
                   CONSOLIDATED  JOINT            CONSOLIDATED  JOINT
                   BUSINESSES                     BUSINESSES
                                 VENTURES (1)                  VENTURES (1)
REVENUES:
    Minimum rents  292,248       119,213          251,569       115,566
    Percentage     12,767        5,797            9,591         4,108
    rents
    Expense        185,325       72,561           162,936       67,583
    recoveries
    Management,
    leasing, and   27,441                         15,423
    development
    services
    Other          20,487        4,945            18,077        3,906
        Total      538,268       202,516          457,596       191,163
        revenues
EXPENSES:
    Maintenance,
    taxes,         143,854       52,202           129,712       48,921
    utilities, and
    promotion
    Other          52,360        11,461           48,138        11,093
    operating
    Management,
    leasing, and   21,674                         7,492
    development
    services
    General and    28,021                         22,998
    administrative
    Acquisition                                   1,681
    costs
    Interest       109,146       48,107           89,529        45,164
    expense
    Depreciation
    and            109,083       26,690           99,503        27,859
    amortization
        Total      464,138       138,460          399,053       133,037
        expenses
Nonoperating       251           19               857           121
Income
                   74,381        64,075           59,400        58,247
Income tax expense (1,438)                        (413)
Equity in income
of Unconsolidated  35,743                         31,990
Joint Ventures
Income from
continuing         108,686                        90,977
operations
Discontinued
operations (2):
    EBITDA                                        2,029
    Interest                                      (17,374)
    expense
    Depreciation
    and                                           (9,030)
    amortization
Income (loss) from
discontinued                                      (24,375)
operations
Net income         108,686                        66,602
Net income
attributable to
noncontrolling
interests:
    Noncontrolling
    share of
    income of      (6,788)                        (10,497)
    consolidated
    joint
    ventures
    TRG series F
    preferred                                     (1,845)
    distributions
    Noncontrolling
    share of
    income of TRG  (27,105)                       (22,113)
    - continuing
    operations
    Noncontrolling
    share of
    income of TRG                                 7,493
    - discontinued
    operations
Distributions to
participating      (1,209)                        (1,144)
securities of TRG
Preferred stock    (17,980)                       (10,975)
dividends(3)
Net income
attributable to
Taubman Centers,   55,604                         27,521
Inc. common
shareowners
SUPPLEMENTAL
INFORMATION:
    EBITDA - 100% 292,610       138,872          250,461       131,270
    EBITDA -
    outside        (27,117)      (62,259)         (27,017)      (59,524)
    partners'
    share
    Beneficial
    interest in    265,493       76,613           223,444       71,746
    EBITDA
    Beneficial
    interest       (96,512)      (25,084)         (98,494)      (23,406)
    expense
    Beneficial
    income tax     (1,393)                        (413)
    expense
    Non-real
    estate         (1,988)                        (1,976)
    depreciation
    Preferred
    dividends and  (17,980)                       (12,820)
    distributions
    Funds from
    Operations     147,620       51,529           109,741       48,340
    contribution
    Net
    straight-line
    adjustments to
    rental
    revenue,
    recoveries,
     and ground
    rent expense   2,544         360              173           142
    at TRG %
    Purchase
    accounting     610
    adjustments -
    minimum rents
    Purchase
    accounting
    adjustments -  (2,573)
    interest
    expense
    reduction
    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
(1) order to allow for measurement of their performance as a whole, without
    regard to the Company's ownership interest. In its consolidated financial
    statements, the Company accounts for its investments in the Unconsolidated
    Joint Ventures under the equity method.
(2) Includes the operations of Regency Square and The Pier Shops.
    Preferred dividends for the nine months ended September 30, 2012 include
(3) charges of $3.3 million and $3.1 million incurred in connection with the
    $100 million redemption of the Series G Preferred Stock and the $87 million
    redemption of the Series H Preferred Stock, respectively.



TAUBMAN CENTERS,
INC.
Table 4 - Reconciliation of Net Income Attributable to Taubman
Centers, Inc. Common Shareowners to Funds from Operations
 and Adjusted
Funds from
Operations
For the Three
Months Ended
September 30, 2012
and 2011
(in thousands of dollars
except as noted; may not add
or recalculate due to
rounding)
                               2012                         2011
                               Shares     Per              Shares     Per
                                           Share                        Share
                      Dollars  /Units      /Unit   Dollars  /Units      /Unit
Net income
attributable to TCO   21,700   60,571,612  0.36    8,461    57,890,006  0.15
common shareowners -
Basic
Add impact of
share-based           168      1,453,710           91       1,745,551
compensation
Net income
attributable to TCO   21,868   62,025,322  0.35    8,552    59,635,557  0.14
common shareowners -
Diluted
Add depreciation of
TCO's additional      1,720                0.03    1,720                0.03
basis
Net income
attributable to TCO
common shareowners,
   excluding step-up  23,588   62,025,322  0.38    10,272   59,635,557  0.17
   depreciation
Add:
   Noncontrolling
   share of income
   of TRG -           10,216   26,422,911          7,964    25,158,885
   continuing
   operations
   Noncontrolling
   share of loss of
   TRG -                                           (3,539)
   discontinued
   operations
   Distributions to
   participating      403      871,262             382      871,262
   securities
Net income
attributable to
partnership
unitholders
   and participating  34,207   89,319,495  0.38    15,079   85,665,704  0.18
   securities
Add (less)
depreciation and
amortization:
   Consolidated
   businesses at      36,414               0.41    33,054               0.39
   100% - continuing
   operations
   Consolidated
   businesses at
   100% -                                          5,361                0.06
   discontinued
   operations
   Depreciation of
   TCO's additional   (1,720)              (0.02)  (1,720)              (0.02)
   basis
   Noncontrolling
   partners in        (2,888)              (0.03)  (2,404)              (0.03)
   consolidated
   joint ventures
   Share of
   Unconsolidated     5,311                0.06    5,486                0.06
   Joint Ventures
   Non-real estate    (679)                (0.01)  (639)                (0.01)
   depreciation
Less impact of
share-based           (168)                (0.00)  (91)                 (0.00)
compensation
Funds from            70,477   89,319,495  0.79    54,126   85,665,704  0.63
Operations
TCO's average
ownership percentage  69.6%                        69.7%
of TRG
Funds from
Operations            49,071               0.79    37,729               0.63
attributable to TCO
Funds from            70,477   89,319,495  0.79    54,126   85,665,704  0.63
Operations
Charge upon
redemption of Series  6,412                0.07
G and H Preferred
Stock
Acquisition costs                                  1,681                0.02
Adjusted Funds from   76,889   89,319,495  0.86    55,807   85,665,704  0.65
Operations
TCO's average
ownership percentage  69.6%                        69.7%
of TRG
Adjusted Funds from
Operations            53,535               0.86    38,901               0.65
attributable to TCO
Adjusted Funds from                                55,807   85,665,704  0.65
Operations
The Pier Shops' and
Regency Square's                                   6,316                0.07
negative FFO
Adjusted Funds from
Operations,
   excluding The
   Pier Shops and                                  62,123   85,665,704  0.73
   Regency Square
TCO's average
ownership percentage                               69.7%
of TRG
Adjusted Funds from
Operations
attributable to TCO,
   excluding The
   Pier Shops and                                  43,303               0.73
   Regency Square



TAUBMAN CENTERS,
INC.
Table 5 - Reconciliation of Net Income Attributable to Taubman
Centers, Inc. Common Shareowners to Funds from Operations
 and Adjusted
Funds from
Operations
For the Nine Months
Ended September 30,
2012 and 2011
(in thousands of dollars
except as noted; may not add
or recalculate due to
rounding)
                               2012                         2011
                               Shares     Per              Shares     Per
                                           Share                        Share
                      Dollars  /Units      /Unit   Dollars  /Units     /Unit
Net income
attributable to TCO   55,604   59,207,828  0.94    27,521   56,554,268  0.49
common shareowners -
Basic
Add impact of
share-based           470      1,508,690           275      1,582,881
compensation
Net income
attributable to TCO   56,074   60,716,518  0.92    27,796   58,137,149  0.48
common shareowners -
Diluted
Add depreciation of
TCO's additional      5,159                0.08    5,160                0.09
basis
Net income
attributable to TCO
common shareowners,
   excluding step-up  61,233   60,716,518  1.01    32,956   58,137,149  0.57
   depreciation
Add:
   Noncontrolling
   share of income
   of TRG -           27,105   26,447,257          22,113   25,243,652
   continuing
   operations
   Noncontrolling
   share of income
   of TRG -                                        (7,493)
   discontinued
   operations
   Distributions to
   participating      1,209    871,262             1,144    871,262
   securities
Net income
attributable to
partnership unit
holders
   and participating  89,547   88,035,037  1.02    48,720   84,252,063  0.58
   securities
Add (less)
depreciation and
amortization:
   Consolidated
   businesses at      109,083              1.24    99,503               1.18
   100% - continuing
   operations
   Consolidated
   businesses at
   100% -                                          9,030                0.11
   discontinued
   operations
   Depreciation of
   TCO's additional   (5,159)              (0.06)  (5,160)              (0.06)
   basis
   Noncontrolling
   partners in        (7,650)              (0.09)  (8,111)              (0.10)
   consolidated
   joint ventures
   Share of
   Unconsolidated     15,786               0.18    16,350               0.19
   Joint Ventures
   Non-real estate    (1,988)              (0.02)  (1,976)              (0.02)
   depreciation
Less impact of
share-based           (470)                (0.01)  (275)                (0.00)
compensation
Funds from            199,149  88,035,037  2.26    158,081  84,252,063  1.88
Operations
TCO's average
ownership percentage  69.1%                        69.1%
of TRG
Funds from
Operations            137,676              2.26    109,292              1.88
attributable to TCO
Funds from            199,149  88,035,037  2.26    158,081  84,252,063  1.88
Operations
Charge upon
redemption of Series  6,412                0.07
G and H Preferred
Stock
Acquisition costs                                  1,681                0.02
Adjusted Funds from   205,561  88,035,037  2.33    159,762  84,252,063  1.90
Operations
TCO's average
ownership percentage  69.1%                        69.1%
of TRG
Adjusted Funds from
Operations            142,108              2.33    110,464              1.90
attributable to TCO
Adjusted Funds from                                159,762  84,252,063  1.90
Operations
The Pier Shops' and
Regency Square's                                   15,340               0.18
negative FFO
Adjusted Funds from
Operations,
   excluding The
   Pier Shops and                                  175,102  84,252,063  2.08
   Regency Square
TCO's average
ownership percentage                               69.1%
of TRG
Adjusted Funds from
Operations
attributable to TCO,
   excluding The
   Pier Shops and                                  121,064              2.08
   Regency Square



TAUBMAN CENTERS, INC.
Table 6 - Reconciliation of Net Income to
Beneficial Interest in EBITDA
 and Adjusted Beneficial Interest
in EBITDA
For the Periods Ended September 30,
2012 and 2011
(in thousands of dollars; amounts attributable to
TCO may not recalculate due to rounding)
                                      Three Months Ended    Year to Date
                                      2012         2011     2012      2011
Net income                            45,061       21,868   108,686   66,602
Add (less) depreciation and
amortization:
   Consolidated businesses at 100%    36,414       33,054   109,083   99,503
   - continuing operations
   Consolidated businesses at 100%                 5,361              9,030
   - discontinued operations
   Noncontrolling partners in         (2,888)      (2,404)  (7,650)   (8,111)
   consolidated joint ventures
   Share of Unconsolidated Joint      5,311        5,486    15,786    16,350
   Ventures
Add (less) interest expense and
income tax expense:
   Interest expense:
        Consolidated businesses at
        100% - continuing             34,943       30,064   109,146   89,529
        operations
        Consolidated businesses at
        100% - discontinued                        6,354              17,374
        operations
        Noncontrolling partners in    (4,225)      (2,767)  (12,634)  (8,409)
        consolidated joint ventures
        Share of Unconsolidated       8,765        8,082    25,084    23,406
        Joint Ventures
   Share of income tax expense        667          208      1,393     413
Less noncontrolling share of income   (2,079)      (4,327)  (6,788)   (10,497)
of consolidated joint ventures
Beneficial Interest in EBITDA         121,969      100,979  342,106   295,190
TCO's average ownership percentage    69.6%        69.7%    69.1%     69.1%
of TRG
Beneficial Interest in EBITDA         84,923       70,388   236,516   204,082
attributable to TCO
Beneficial Interest in EBITDA        121,969      100,979  342,106   295,190
   Acquisition costs                               1,681              1,681
Adjusted Beneficial Interest in       121,969      102,660  342,106   296,871
EBITDA
TCO's average ownership percentage    69.6%        69.7%    69.1%     69.1%
of TRG
Adjusted Beneficial Interest in       84,923       71,560   236,516   205,254
EBITDA attributable to TCO



TAUBMAN CENTERS, INC.
Table 7 -
Reconciliation of Net
Income to Net
Operating Income
(NOI)
For the Periods Ended
September 30, 2012
and 2011
(in thousands of
dollars)
                       Three Months Ended      Three Months Ended      Year to Date              Year to Date
                       2012        2011        2011        2010        2012         2011         2011         2010
Net                    45,061      21,868      21,868      8,458       108,686      66,602       66,602       43,755
income
Add (less)
depreciation and
amortization:
     Consolidated
     businesses at
     100% -            36,414      33,054      33,054      41,585      109,083      99,503       99,503       110,629
     continuing
     operations
     Consolidated
     businesses at
     100% -                        5,361       5,361       2,915                    9,030        9,030        6,873
     discontinued
     operations
     Noncontrolling
     partners in       (2,888)     (2,404)     (2,404)     (2,501)     (7,650)      (8,111)      (8,111)      (7,519)
     consolidated
     joint ventures
     Share of
     Unconsolidated    5,311       5,486       5,486       5,731       15,786       16,350       16,350       16,532
     Joint Ventures
Add (less) interest
expense and income
tax expense:
     Interest
     expense:
       Consolidated
       businesses at
       100% -          34,943      30,064      30,064      33,743      109,146      89,529       89,529       99,157
       continuing
       operations
       Consolidated
       businesses at
       100% -                      6,354       6,354       5,163                    17,374       17,374       15,089
       discontinued
       operations
       Noncontrolling
       partners in     (4,225)     (2,767)     (2,767)     (5,356)     (12,634)     (8,409)      (8,409)      (15,869)
       consolidated
       joint ventures
       Share of
       Unconsolidated  8,765       8,082       8,082       8,360       25,084       23,406       23,406       24,810
       Joint Ventures
     Share of income   667         208         208         238         1,393        413          413          548
     tax expense
Less noncontrolling
share of income of     (2,079)     (4,327)     (4,327)     (1,920)     (6,788)      (10,497)     (10,497)     (5,901)
consolidated joint
ventures
Add EBITDA
attributable to
outside partners:
     EBITDA
     attributable to
     noncontrolling    9,257       9,498       9,498       9,777       27,117       27,017       27,017       29,289
     partners in
     consolidated
     joint ventures
     EBITDA
     attributable to
     outside partners  21,536      20,326      20,326      19,764      62,259       59,524       59,524       57,902
     in
     Unconsolidated
     Joint Ventures
EBITDA at 100%         152,762     130,803     130,803     125,957     431,482      381,731      381,731      375,295
Add (less) items
excluded from
shopping center NOI:
     General and
     administrative    9,571       7,709       7,709       7,168       28,021       22,998       22,998       21,593
     expenses
     Management,
     leasing, and      (4,069)     (2,194)     (2,194)     (2,155)     (5,767)      (7,931)      (7,931)      (5,440)
     development
     services, net
     Gains on sales
     of peripheral                                                                  (519)        (519)        (1,040)
     land
     Interest income   (74)        (225)       (225)       (193)       (270)        (528)        (528)        (453)
     Straight-line of  (2,055)     (836)       (836)       (1,045)     (4,535)      (1,379)      (1,379)      (1,570)
     rents
     Acquisition                   1,681       1,681                                1,681        1,681
     costs
     Non-center
     specific
     operating         6,357       7,244       7,244       4,802       21,773       22,057       22,057       16,607
     expenses and
     other
NOI - all centers at   162,492     144,182     144,182     134,534     470,704      418,110      418,110      404,992
100%
Less - NOI of
non-comparable         (7,459) (1) (33)    (2) (33)    (2) (1,524) (2) (20,230) (1) (1,909)  (2) (1,909)  (2) (5,659)  (2)
centers
NOI at 100% -          155,033     144,149     144,149     133,010     450,474      416,201      416,201      399,333
comparable centers
NOI - growth %         7.6%                    8.4%                    8.2%                      4.2%
NOI at 100% -          155,033     144,149     144,149     133,010     450,474      416,201      416,201      399,333
comparable centers
Lease cancellation     (1,076)     (787)       (787)       (948)       (3,015)      (2,987)      (2,987)      (10,129)
income
NOI at 100% -
comparable centers     153,957     143,362     143,362     132,062     447,459      413,214      413,214      389,204
excluding lease
cancellation income
NOI excluding lease
cancellation income -  7.4%                    8.6%                    8.3%                      6.2%
growth %
     Includes City
     Creek Center,
     The Mall at
(1)  Green Hills, The
     Gardens on El
     Paseo and El
     Paseo Village.
(2)  Includes The Pier Shops and Regency Square.



TAUBMAN CENTERS, INC.
Table 8 - Balance Sheets
As of September 30, 2012 and December 31, 2011
(in thousands of dollars)
                                                As of
                                                September 30,    December 31,
                                                2012             2011
Consolidated Balance Sheet of Taubman Centers, Inc. :
Assets:
        Properties                              4,202,022        4,020,954
        Accumulated depreciation and            (1,361,527)      (1,271,943)
        amortization
                                                2,840,495        2,749,011
        Investment in Unconsolidated Joint      122,151          75,582
        Ventures
        Cash and cash equivalents               29,296           24,033
        Restricted cash (1)                     4,611            295,318
        Accounts and notes receivable, net      42,135           59,990
        Accounts receivable from related        1,817            1,418
        parties
        Deferred charges and other assets       112,234          131,440
                                                3,152,739        3,336,792
Liabilities:
        Mortgage notes payable                  2,654,687        2,864,135
        Installment notes (1)                                    281,467
        Accounts payable and accrued            267,147          255,146
        liabilities
        Distributions in excess of investments
        in and net income of
                   Unconsolidated Joint         317,031          192,257
                   Ventures
                                                3,238,865        3,593,005
Redeemable noncontrolling interests             81,434           84,235
Equity:
        Taubman Centers, Inc. Shareowners'
        Equity:
                   Series B Non-Participating   26               26
                   Convertible Preferred Stock
                   Series G Cumulative
                   Redeemable Preferred Stock
                   Series H Cumulative
                   Redeemable Preferred Stock
                   Series J Cumulative
                   Redeemable Preferred Stock
                   Common stock                 617              580
                   Additional paid-in capital   826,594          673,923
                   Accumulated other            (31,407)         (27,613)
                   comprehensive loss
                   Dividends in excess of net   (890,426)        (863,040)
                   income
                                                (94,596)         (216,124)
        Noncontrolling interests:
                   Noncontrolling interests in  (101,108)        (101,872)
                   consolidated joint ventures
                   Noncontrolling interests in  28,144           (22,452)
                   partnership equity of TRG
                                                (72,964)         (124,324)
                                                (167,560)        (340,448)
                                                3,152,739        3,336,792
Combined Balance Sheet of Unconsolidated Joint
Ventures (2):
Assets:
        Properties                              1,119,287        1,107,314
        Accumulated depreciation and            (466,621)        (446,059)
        amortization
                                                652,666          661,255
        Cash and cash equivalents               20,597           22,042
        Accounts and notes receivable, net      17,404           24,628
        Deferred charges and other assets     41,489           21,289
                                                732,156          729,214
Liabilities:
        Mortgage notes payable                  1,346,485        1,138,808
        Accounts payable and other liabilities, 59,081           55,737
        net
                                                1,405,566        1,194,545
Accumulated Deficiency in Assets:
        Accumulated deficiency in assets - TRG  (375,530)        (235,525)
        Accumulated deficiency in assets -      (274,186)        (211,478)
        Joint Venture Partners
        Accumulated other comprehensive income  (11,847)         (9,233)
        (loss) - TRG
        Accumulated other comprehensive income  (11,847)         (9,095)
        (loss) - Joint Venture Partners
                                                (673,410)        (465,331)
                                                732,156          729,214
(1)     Installment notes were paid in full in February 2012 with restricted
        cash drawn on the Company's line of credit as of December 31, 2011.
(2)     The September 30, 2012 amounts exclude the balances of Hanam Union
        Square and the retail component of Xi'an Saigao City Plaza, which are
        currently under development.



TAUBMAN CENTERS, INC.
Table 9 - Annual Guidance
(all dollar amounts per common share on a
diluted basis; amounts may not add due to
rounding)
                                               Range for Year Ended
                                               December 31, 2012
Adjusted Funds from Operations per common      3.27                3.32
share
        Charge upon redemption of Series       (0.07)              (0.07)
        G and H Preferred Stock
        Early extinguishment of debt           (0.02)              (0.02)
        charge(1)
Funds from Operations per common share         3.18                3.23
Real estate depreciation - TRG                 (1.75)              (1.73)
Distributions on participating securities      (0.02)              (0.02)
of TRG
Depreciation of TCO's additional basis in      (0.11)              (0.11)
TRG
Net income attributable to common              1.30                1.37
shareowners, per common share (EPS)
        In October 2012, the existing $197 million, 5.46% loan on The Mall at
        Millenia, a 50 percent owned joint venture, was refinanced. Since
(1)     this was earlier than allowed under the loan, the partnership incurred
        approximately $3.2 million in defeasance charges, of which $1.6
        million was our share.



SOURCE Taubman Centers, Inc.

Website: http://www.taubman.com
Contact: Barbara Baker, Taubman, Vice President, Investor Relations,
+1-248-258-7367, bbaker@taubman.com
 
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