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TAUBMAN CENTERS ISSUES SECOND QUARTER, FIRST HALF RESULTS

 BLOOMFIELD HILLS, Mich., Aug. 3 /PRNewswire/ -- Taubman Centers, Inc. (NYSE: TCO) today issued its financial results for the second- quarter and year-to-date periods ended June 30, 1993.
 Taubman Centers, Inc., a real estate investment trust, is the managing general partner of The Taubman Realty Group Limited Partnership (TRG), which owns, develops, acquires and operates regional shopping centers nationally.
 For the quarter ended June 30, 1993, Funds from Operations for Taubman Centers was $9.1 million, or $.20 per share. Funds from Operations for the six months ended June 30, 1993 was $18.3 million, or $.41 per share. As of June 30, 1993, there were 44.6 million Taubman Centers shares outstanding.
 Taubman Centers' net income for the quarter ended June 30, 1993, was $3.7 million, or $.08 per share. Net income for the six months ended June 30, 1993, was $7.4 million, or $.17 per share.
 (NOTE: Because Taubman Centers acquired its ownership interest in TRG in the fourth quarter of 1992, comparable Funds from Operations and net income amounts for 1992 are not available.)
 Commenting on the company's results, President and Chief Executive Officer Robert S. Taubman said, "We're pleased with the results for the second quarter. Given the seasonality of our business, our performance is in line with our expectations, and leaves our outlook for 1993 Funds from Operations unchanged."
 TRG's EBITDA for second quarter 1993 was $41.6 million, a 4.3 percent increase from the $39.9 million in the prior year's comparable quarter. Distributable Cash Flow increased 11.8 percent to $25.7 million from $23.0 million in the second quarter of 1992.
 TRG's EBITDA for the first half of 1993 was $83.7 million, a 3.8 percent increase from the $80.6 million reported in the prior year's comparable period. Distributable Cash Flow increased 10.7 percent to $51.9 million from the $46.9 million reported in the first six months of 1992.
 TENANT SALES AND RENTS INCREASE
 Tenant sales in the 19 regional shopping centers wholly and partially owned by TRG increased 1.2 percent from second quarter 1992 to $535.9 million. Tenant sales increased 1.4 percent to $1.021 billion for the six months ended June 30, 1993.
 For the 12 months ended June 30, 1993, rent per square foot for the 16 TRG centers operating at least five years was $31.67, up 5.5 percent over the 12-month period ended June 30, 1992. Rent on stores opening in these centers during the twelve months ended June 30, 1993 was $38.62 per square foot, while rent on stores closing during the period averaged $27.77. In comparison, during the twelve months ended June 30, 1992, rent on stores opening was $35.84 per square foot and rent on stores closing was $30.16.
 Average occupancy was 86.4 percent in the second quarter of 1993, down from 87.8 percent in the second quarter of 1992. "Occupancy in the second quarter improved over the first quarter's level of 85.3 percent," said Mr. Taubman. "We expect continued improvement throughout the rest of the year."
 In June, the Taubman Realty Group completed the acquisition of all interests held by its joint venture partner in The Mall at Short Hills. TRG now owns 100 percent of the 1.1 million square foot center. "Short Hills is by any measure one of America's strongest retail properties, and we're confident this acquisition will make a positive contribution immediately to the company's Funds from Operations," said Mr. Taubman.
 DEVELOPMENT PARTNERSHIP FORMED
 Agreement was reached in May with The Limited, Inc. (NYSE: LTD) to form a joint venture to develop two super-regional shopping centers in suburban Columbus, Ohio. "We're delighted to have the opportunity to combine our expertise with the talents and resources of one of the nation's premier retailers," said Mr. Taubman. "This partnership is a natural outgrowth of our long-standing relationship."
 The two centers will be developed on land currently owned by The Limited in northeast Columbus at I-270 and Morse Road near New Albany, and in northwest Columbus at I-270 and Tuttle Crossing Boulevard near Dublin.
 "We know Columbus well, and are enthusiastic about building on the extraordinary success of our City Center downtown retail development. Since its opening in 1989, City Center's performance has underscored the retail potential of the affluent and growing greater-Columbus market."
 TAUBMAN CENTERS, INC.
 Three months ended Six months ended
 June 30 June 30
 1993 1992 1993 1992
 (in thousands of (in thousands of
 dollars, except as dollars, except as
 indicated) indicated)
 Equity in net income of TRG
 3,924 7,810
 Other(net) (192) (380)
 Net income 3,732 7,430
 Net income per share
 0.08 0.17
 N/A(1) N/A(1)
 Funds from Operations(2)
 9,051 18,302
 Funds from Operations per share
 0.20 0.41
 Weighted average number of shares outstanding
 44,589,913 44,589,913
 Ownership percentage of TRG at end of period
 35.97% 35.97%
 THE TAUBMAN REALTY GROUP LIMITED
 PARTNERSHIP (TRG)
 Three months ended Six months ended
 June 30 June 30
 1993 1992 1993 1992
 (in thousands of (in thousands of
 dollars, except as dollars, except as
 indicated) indicated)
 Net income 17,038 14,406 34,387 30,147
 EBITDA(3) 41,620 39,923 83,707 80,643
 Distributable Cash Flow(4)
 25,696 22,983 51,938 46,930
 Number of shopping centers at end of period
 19 19 19 19
 Mall tenant sales
 535,857 529,657 1,020,519 1,006,363
 Average occupancy %
 86.4% 87.8% 85.9% 87.6%
 Mall tenant occupancy costs as a percentage
 of tenant sales(5)
 18.4% 18.2% 19.2% 19.1%
 Twelve months ended
 June 30
 Rent per square foot -
 centers open prior to 1993 1992
 January 1, 1988
 All mall tenants $31.67 $30.03
 Stores opening $38.62 $35.84
 Stores closing $27.77 $30.16
 Notes:
 (1) Amounts for the comparable period of 1992 are not presented
 because the closing of the initial public offering and the
 concurrent investment in TRG occurred in the fourth quarter
 of 1992.
 (2) Defined as Taubman Centers, Inc.'s (TCI's) beneficial
 interest in TRG's Distributable Cash Flow plus TCI's other
 income, less TCI's operating expenses. TCI's other income
 less operating expenses is reported as "other (net)" in the
 table above.
 (3) Defined as TRG's beneficial interest in the revenues, less
 operating costs before interest, depreciation and
 amortization, and unusual items, of TRG's wholly and
 partially owned managed businesses.
 (4) Defined as EBITDA less TRG's beneficial interest in interest
 expense. TRG's beneficial interest in debt at June 30, 1993
 was $975.8 million compared to $850.9 million at March 31,
 1993. The increase in TRG's beneficial interest in debt was
 primarily due to borrowings to fund the acquisition of all
 interests held by TRG's joint venture partner in The Mall at
 Short Hills.
 (5) Mall tenant occupancy costs are defined as the sum of
 minimum rents, percentage rents and expense recoveries.
 -0- 8/3/93
 /CONTACT: Christopher J. Tennyson, 313-258-7519, for Taubman Centers/
 (TCO)


CO: Taubman Centers, Inc. ST: Michigan IN: FIN SU: ERN

SH -- NY031 -- 8798 08/03/93 10:10 EDT
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Date:Aug 3, 1993
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