Taubman Centers, Inc. Issues Third Quarter Results

  • Net Income and Earnings Per Diluted Common Share (EPS) Higher Due to Sale of Interest in Starfield Hanam
  • Pro Rata Total Portfolio NOI, Excluding Lease Cancellation Income, Up 0.7 Percent for the Quarter and 3.6 Percent Year-to-Date
  • Average Rent Per Square Foot Up 2.3 Percent
  • Trailing 12-Month Tenant Sales Per Square Foot $868, Up 12 Percent
  • Sales Per Square Foot Up 11.2 Percent, 13th Consecutive Quarter of Growth

BLOOMFIELD HILLS, Mich.–(BUSINESS WIRE)–Taubman Centers, Inc. (NYSE: TCO) today reported financial results for the third quarter of 2019.

 

September 30, 2019

September 30, 2018

September 30, 2019

September 30, 2019

Three Months Ended

Three Months Ended

Nine Months Ended

Nine Months Ended

Net income attributable to common shareowners, diluted (in thousands)

$216,873

$21,007

$239,223

$54,950

Net income attributable to common shareowners (EPS) per diluted common share

$3.48(1)

$0.34

$3.84(1)

$0.90

Funds from Operations (FFO) per diluted common share

$0.88

$1.05

$2.59

$2.85

Growth rate

(16.2)%

 

(9.1)%

 

Adjusted Funds from Operations (Adjusted FFO) per diluted common share

$0.86(2)

$1.01(3)

$2.74(2)

$2.92(3)

Growth rate

(14.9)%

 

(6.2)%

 

(1)

EPS for the three and nine-month periods ended September 30, 2019 were higher primarily due to the sale of 50 percent of our interest in Starfield Hanam and a litigation settlement related to The Mall of San Juan, resulting in the recognition of gains totaling approximately $3.30 per diluted common share.

(2)

Adjusted FFO for the three and nine-month periods ended September 30, 2019 excludes restructuring charges, a promote fee (net of tax) related to Starfield Hanam, and costs associated with shareholder activism. Adjusted FFO for the nine-month period ended September 30, 2019 also excludes costs incurred related to the Blackstone transactions prior to closing and the fluctuation in the fair value of equity securities.

(3)

Adjusted FFO for the three and nine-month periods ended September 30, 2018 excludes costs associated with shareholder activism and the fluctuation in the fair value of equity securities.

“We were pleased to meet our earnings expectations this quarter,” said Robert S. Taubman, chairman, president and chief executive officer.

Year-over-year, this quarter’s results were lower due to higher interest expense, lower lease cancellation income and a gain on a land sale in 2018. In addition, the company’s results were impacted by the Forever 21 bankruptcy filing by about three cents. Taken together, these items affected third quarter FFO and Adjusted FFO per share by about 12 cents.

Operating Statistics

Total portfolio NOI growth at our beneficial interest, excluding lease cancellation income, was up 0.7 percent for the quarter, bringing year-to-date growth to 3.6 percent.

Comparable center NOI, excluding lease cancellation income and using constant currency exchange rates, was down 0.9 percent in the quarter, bringing year-to-date growth to 1.1 percent. Comparable center NOI, excluding lease cancellation income, was down 1.5 percent in the quarter, bringing year-to-date growth to 0.3 percent. “Foreign currency exchange rates and Forever 21’s bankruptcy reduced NOI this quarter as compared to last year,” said Simon J. Leopold, executive vice president, chief financial officer. “Putting aside these two items, our third quarter NOI was essentially flat to last year,” said Mr. Leopold.

Tenant sales per square foot in U.S. comparable centers were up 12.3 percent in the quarter, bringing 12-month trailing U.S. sales per square foot to $964, an increase of 13.7 percent over the 12-months ended September 30, 2018. Year-to-date, U.S. sales per square foot were up 15 percent.

Including Asia, comparable tenant sales per square foot increased 11.2 percent from the third quarter of 2018. This brings the company’s 12-month trailing sales per square foot to $868, up 12 percent over the 12-months ended September 30, 2018. Year-to-date, tenant sales per square foot were up 12.9 percent.

“While Tesla continues to positively impact our growth, sales for the quarter were otherwise solid,” said Mr. Taubman.

Average rent per square foot for the quarter was $56.03, up 2.3 percent, bringing year-to-date growth to 1.7 percent. Average rent per square foot in U.S. comparable centers was up 0.9 percent in both the third quarter and year-to-date.

Trailing 12-month releasing spread per square foot for the period ended September 30, 2019 was negative 1 percent. The spread was impacted by a small number of deals that have an average lease term of less than two years. Without these leases, the spread was 3.3 percent.

Ending occupancy in comparable centers was 93.4 percent on September 30, 2019, up 0.1 percent from September 30, 2018.

Leased space in comparable centers was 95.9 percent on September 30, 2019, up 0.1 percent from September 30, 2018.

“In a year when the retail landscape continues to evolve, we have maintained healthy occupancy levels, while growing rent and portfolio NOI,” said Mr. Taubman.

Financing Activity

In October, the company amended and extended its primary revolving line of credit and one of its two unsecured term loans. The revolving line of credit, which had a maturity date of February 2021, has been extended to February 2024, with two six-month extension options. It has a maximum capacity of $1.1 billion. The term loan, which had a maturity date of February 2022, has been extended to February 2025, with a principal balance of $275 million.

The revolving line of credit and term loan bear interest at a range based on the company’s total leverage ratio. As of today, the leverage ratio results in a rate of LIBOR plus 1.375 percent, with an annual facility fee of 0.225 percent for the revolver and a rate of LIBOR plus 1.55 percent for the term loan.

“We have successfully extended the maturities of our line of credit and term loan, at slightly lower borrowing rates, which is indicative of the quality of our assets,” said Mr. Leopold.

In October, the company also exercised the final one-year extension option for the $150 million loan for The Mall at Green Hills (Nashville, Tenn.), extending the maturity date to December 1, 2020. Beginning December 1, 2019, the loan will bear interest at LIBOR plus 1.45 percent.

Starfield Hanam

In September, the company completed the sale of 50 percent of Taubman Asia’s interest in Starfield Hanam (Hanam, South Korea) to real estate funds managed by The Blackstone Group Inc. (Blackstone) for $300 million. The company now has a 17.15 percent ownership interest in the center. See Taubman Completes Sale of Interest in Starfield Haman to BlackstoneSeptember 19, 2019. The company received net proceeds of about $240 million, following the allocation of property-level debt and transaction costs, which were used to pay down debt. During the quarter, the company recognized a gain on disposition of $139 million and a gain on remeasurement of $145 million.

In September, Blackstone also purchased the 14.7 percent interest in Starfield Hanam that was owned by the company’s institutional joint venture partner. Taubman recognized a $4 million promote fee (net of tax), as a result of the sale. This nonrecurring item has been excluded from Adjusted FFO.

Litigation Resolved at The Mall of San Juan

The ongoing litigation with Hudson’s Bay Company (HBC), regarding the former Saks Fifth Avenue location at The Mall of San Juan (San Juan, Puerto Rico) has been resolved. Accordingly, HBC agreed to pay the company $26 million as a partial reimbursement of their previously received anchor allowance, in exchange for the termination of their obligations under their agreements. Taubman now has full control of the location.

The allowance reimbursement and value of the former Saks Fifth Avenue building and improvements exceeded the write-off of the book value of the anchor allowance and legal costs incurred in the third quarter, resulting in a $10.1 million net gain, which was included in non-operating income.

2019 Guidance

Taubman is updating certain key guidance measures for 2019.

EPS is now expected to be in the range of $4.00 to $4.15 per diluted share, revised from the previous range of $0.60 to $0.80 per diluted share, primarily due to gains recognized related to the Starfield Hanam transaction.

FFO is now expected to be in the range of $3.49 to $3.59 per diluted common share, revised from the previous range of $3.47 to $3.57 per diluted share.

Adjusted FFO guidance, which excludes $0.15 per diluted common share of year-to-date adjustments, remains unchanged and is expected to be in the range of $3.64 to $3.74 per diluted common share.

Comparable center NOI growth is now expected to be flat to 1 percent for the year, reduced from the previous guidance of about 2 percent. Lower NOI growth is expected primarily due to unfavorable foreign currency exchange rates (which have negatively impacted growth by 0.8 percent year-to-date) and elevated tenant bankruptcies, including Forever 21.

The company’s share of consolidated and unconsolidated interest expense is now expected to be $205 to $210 million, down from the previous range of $215 to $221 million. The company expects lower interest expense as a result of lower rates and a lower balance on its line of credit due to the paydown from the Starfield Hanam transaction proceeds.

The company’s share of lease cancellation income is now expected to be approximately $10 million, compared to our previous guidance of approximately $12 million.

All other key guidance measures remain unchanged. This guidance does not include the impact of the remaining Blackstone transactions. We anticipate these transactions will close around year-end 2019. The guidance also does not include an assumption for future costs associated with shareholder activism.

Supplemental Investor Information Available

Taubman provides supplemental investor information along with its earnings announcements, available online at www.taubman.com under “Investors.” This includes the following:

  • Earnings Press Release
  • Company Overview
  • Operational Statistics
  • Summary of Key Guidance Measures
  • Income Statements
  • Changes in Funds from Operations and Earnings Per Common Share
  • Balance Sheets
  • Debt Summary
  • Capital Spending and Certain Balance Sheet Information
  • Owned Centers
  • New Development, Acquisition and Partial Disposition of Interest
  • Components of Rental Revenues
  • Components of Other Income, Other Operating Expense, and Nonoperating Income, Net
  • Earnings Reconciliations
  • Glossary

Investor Conference Call

Taubman will host a conference call at 10:00 a.m. EDT on Wednesday October 30, 2019 to discuss these results, business conditions and the outlook for the remainder of 2019. The conference call will be simulcast at www.taubman.com. An online replay will follow shortly after the call and continue for approximately 90 days.

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 shopping centers in the U.S. and Asia. Taubman’s U.S.-owned properties are the most productive in the publicly held U.S. regional 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 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. Forward-looking statements can be identified by words such as “will”, “may”, “could”, “expect”, “anticipate”, “believes”, “intends”, “should”, “plans”, “estimates”, “approximate”, “guidance” and similar expressions in this press release that predict or indicate future events and trends and that do not report historical matters. The forward-looking statements included in this release are made as of the date hereof. Except as required by law, the company assumes 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 that the conditions to one or more transaction closings may not be satisfied, the potential impact on the company due to the announcement of the disposition of ownership interests, the occurrence of any event, change or other circumstances that could give rise to the delay or termination of the transactions, general economic conditions, and other factors. Such factors include, but are not limited to: changes in market rental rates; unscheduled closings or bankruptcies of tenants; relationships with anchor tenants; trends in the retail industry; challenges with department stores; changes in consumer shopping behavior; the liquidity of real estate investments; the company’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 in foreign entities; 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 the company’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 the company’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; and changes in global, national, regional and/or local economic and geopolitical climates.

You should review the company’s filings with the Securities and Exchange Commission, including “Risk Factors” in its most recent Annual Report on Form 10-K and subsequent quarterly reports, for a discussion of such risks and uncertainties.

TAUBMAN CENTERS, INC.

Table 1 – Income Statement

For the Three Months Ended September 30, 2019 and 2018

(in thousands of dollars)

 

2019

 

2018

 

CONSOLIDATED

 

UNCONSOLIDATED

 

CONSOLIDATED

 

UNCONSOLIDATED

 

BUSINESSES

 

JOINT VENTURES (1)

 

BUSINESSES

 

JOINT VENTURES (1)

REVENUES:

 

 

 

 

 

 

 

Rental revenues (2)

141,213

 

 

138,960

 

 

 

 

 

Minimum rents (2)

 

 

 

 

87,306

 

 

87,505

 

Overage rents

3,865

 

 

6,736

 

 

3,263

 

 

7,086

 

Expense recoveries (2)

 

 

 

 

52,096

 

 

44,587

 

Management, leasing, and development services

1,927

 

 

 

 

860

 

 

 

Other (2)

15,501

 

 

7,413

 

 

15,595

 

 

7,796

 

Total revenues

162,506

 

 

153,109

 

 

159,120

 

 

146,974

 

 

 

 

 

 

 

 

 

EXPENSES:

 

 

 

 

 

 

 

Maintenance, taxes, utilities, and promotion

40,786

 

 

45,274

 

 

38,149

 

 

41,375

 

Other operating (2)

19,753

 

 

6,412

 

 

19,253

 

 

5,508

 

Management, leasing, and development services

1,895

 

 

 

 

476

 

 

 

General and administrative

9,632

 

 

 

 

8,530

 

 

 

Restructuring charges

876

 

 

 

 

 

 

 

Costs associated with shareholder activism

675

 

 

 

 

1,500

 

 

 

Interest expense

37,695

 

 

35,398

 

 

33,396

 

 

33,199

 

Depreciation and amortization

47,849

 

 

33,865

 

 

46,307

 

 

33,544

 

Total expenses

159,161

 

 

120,949

 

 

147,611

 

 

113,626

 

 

 

 

 

 

 

 

 

Nonoperating income, net

11,108

 

 

5,657

 

 

8,700

 

 

563

 

 

14,453

 

 

37,817

 

 

20,209

 

 

33,911

 

Income tax (expense) benefit

(2,021

)

 

(2,266

)

 

996

 

 

(2,210

)

 

 

 

 

 

 

 

 

Equity in income of Unconsolidated Joint Ventures

20,252

 

 

 

 

16,910

 

 

 

Gain on partial disposition of ownership interest in Unconsolidated Joint Venture

138,696

 

 

 

 

 

 

 

Gain on remeasurement of ownership interest in Unconsolidated Joint Venture

145,010

 

 

 

 

 

 

 

Net income

316,390

 

 

35,551

 

 

38,115

 

 

31,701

 

Net income attributable to noncontrolling interests:

 

 

 

 

 

 

 

Noncontrolling share of income of consolidated joint ventures

(958

)

 

 

 

(1,564

)

 

 

Noncontrolling share of income of TRG

(93,690

)

 

 

 

(9,192

)

 

 

Distributions to participating securities of TRG

(597

)

 

 

 

(599

)

 

 

Preferred stock dividends

(5,784

)

 

 

 

(5,784

)

 

 

Net income attributable to Taubman Centers, Inc. common shareholders

215,361

 

 

 

 

20,976

 

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL INFORMATION:

 

 

 

 

 

 

 

EBITDA – 100%

383,703

 

 

107,080

 

 

99,912

 

 

100,654

 

EBITDA – outside partners’ share

(5,623

)

 

(50,377

)

 

(6,510

)

 

(48,438

)

Beneficial interest in EBITDA

378,080

 

 

56,703

 

 

93,402

 

 

52,216

 

Gain on Saks settlement – The Mall of San Juan

(10,095

)

 

 

 

 

 

 

Gain on partial disposition of ownership interest in Unconsolidated Joint Venture

(138,696

)

 

 

 

 

 

 

Gain on remeasurement of ownership interest in Unconsolidated Joint Venture

(145,010

)

 

 

 

 

 

 

Beneficial interest expense

(34,851

)

 

(17,798

)

 

(30,412

)

 

(17,093

)

Beneficial income tax expense – TRG and TCO

(2,021

)

 

(991

)

 

1,047

 

 

(1,023

)

Beneficial income tax expense – TCO

 

 

 

 

(113

)

 

 

Non-real estate depreciation

(1,150

)

 

 

 

(1,138

)

 

 

Preferred dividends and distributions

(5,784

)

 

 

 

(5,784

)

 

 

Funds from Operations attributable to partnership unitholders and participating securities of TRG

40,473

 

 

37,914

 

 

57,002

 

 

34,100

 

 

 

 

 

 

 

 

 

STRAIGHTLINE AND PURCHASE ACCOUNTING ADJUSTMENTS:

 

 

 

 

 

 

 

Net straight-line adjustments to rental revenues, recoveries, and ground rent expense at TRG%

1,712

 

 

(422

)

 

727

 

 

445

 

Country Club Plaza purchase accounting adjustments – rental revenues at TRG%

 

 

61

 

 

 

 

22

 

The Mall at Green Hills purchase accounting adjustments – rental revenues

13

 

 

 

 

30

 

 

 

The Gardens Mall purchase accounting adjustments – rental revenues at TRG%

 

 

(639

)

 

 

 

 

The Gardens Mall purchase accounting adjustments – interest expense at TRG%

 

 

(528

)

 

 

 

 

 

 

 

 

 

 

 

 

(1) With the exception of the Supplemental Information, amounts include 100% of the Unconsolidated Joint Ventures. Amounts are net of intercompany transactions. The Unconsolidated Joint Ventures are presented at 100% in order to allow for measurement of their performance as a whole, without regard to our ownership interest.

 

(2) Upon adoption of ASC Topic 842, minimum rents and expense recoveries are now presented within a single revenue line item, Rental Revenues; the presentation of lease cancellation income has changed from Other income to Rental Revenues; the presentation of uncollectible tenant revenues has changed from Other Operating expense to Rental Revenues as a contra-revenue; and Other Operating expense includes certain indirect leasing costs, which were capitalizable under the previous lease accounting standard. As a result of the accounting change, an additional $1.3 million of leasing costs were expensed during the three months ended September 30, 2019. Comparative periods presented were not adjusted to reflect the change in accounting.

TAUBMAN CENTERS, INC.

Table 2 – Income Statement

For the Nine Months Ended September 30, 2019 and 2018

(in thousands of dollars)

 

2019

 

2018

 

CONSOLIDATED BUSINESSES

 

UNCONSOLIDATED JOINT VENTURES (1)

 

CONSOLIDATED BUSINESSES

 

UNCONSOLIDATED JOINT VENTURES (1)

REVENUES:

 

 

 

 

 

 

 

Rental revenues (2)

432,508

 

 

410,613

 

 

 

 

 

Minimum rents (2)

 

 

 

 

261,711

 

 

267,280

 

Overage rents

8,719

 

 

18,279

 

 

7,453

 

 

18,756

 

Expense recoveries (2)

 

 

 

 

154,177

 

 

133,983

 

Management, leasing, and development services

4,035

 

 

 

 

2,480

 

 

 

Other (2)

39,056

 

 

20,779

 

 

47,560

 

 

26,034

 

Total revenues

484,318

 

 

449,671

 

 

473,381

 

 

446,053

 

 

 

 

 

 

 

 

 

EXPENSES:

 

 

 

 

 

 

 

Maintenance, taxes, utilities, and promotion

118,506

 

 

132,413

 

 

113,871

 

 

125,510

 

Other operating (2)

60,210

 

 

18,786

 

 

64,153

 

 

20,619

 

Management, leasing, and development services

2,917

 

 

 

 

1,186

 

 

 

General and administrative

26,762

 

 

 

 

25,545

 

 

 

Restructuring charges

1,585

 

 

 

 

(423

)

 

 

Costs associated with shareholder activism

16,675

 

 

 

 

10,000

 

 

 

Interest expense

112,590

 

 

103,581

 

 

97,242

 

 

99,316

 

Depreciation and amortization

137,064

 

 

103,177

 

 

124,325

 

 

100,962

 

Total expenses

476,309

 

 

357,957

 

 

435,899

 

 

346,407

 

 

 

 

 

 

 

 

 

Nonoperating income, net

26,468

 

 

6,981

 

 

13,858

 

 

1,491

 

 

34,477

 

 

98,695

 

 

51,340

 

 

101,137

 

Income tax (expense) benefit

(4,924

)

 

(6,635

)

 

784

 

 

(5,474

)

 

 

 

 

 

 

 

 

Equity in income of Unconsolidated Joint Ventures

49,746

 

 

 

 

50,680

 

 

 

Gain on partial disposition of ownership interest in Unconsolidated Joint Venture

138,696

 

 

 

 

 

 

 

Gain on remeasurement of ownership interest in Unconsolidated Joint Venture

145,010

 

 

 

 

 

 

 

Net income

363,005

 

 

92,060

 

 

102,804

 

 

95,663

 

Net income attributable to noncontrolling interests:

 

 

 

 

 

 

 

Noncontrolling share of income of consolidated joint ventures

(3,219

)

 

 

 

(4,388

)

 

 

Noncontrolling share of income of TRG

(103,899

)

 

 

 

(24,393

)

 

 

Distributions to participating securities of TRG

(1,817

)

 

 

 

(1,797

)

 

 

Preferred stock dividends

(17,353

)

 

 

 

(17,353

)

 

 

Net income attributable to Taubman Centers, Inc. common shareholders

236,717

 

 

 

 

54,873

 

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL INFORMATION:

 

 

 

 

 

 

 

EBITDA – 100%

567,837

 

 

305,453

 

 

272,907

 

 

301,415

 

EBITDA – outside partners’ share

(18,475

)

 

(146,640

)

 

(19,025

)

 

(145,671

)

Beneficial interest in EBITDA

549,362

 

 

158,813

 

 

253,882

 

 

155,744

 

Gain on insurance recoveries – The Mall of San Juan

(1,418

)

 

 

 

 

 

 

Gain on Saks settlement – The Mall of San Juan

(10,095

)

 

 

 

 

 

 

Gain on partial disposition of ownership interest in Unconsolidated Joint Venture

(138,696

)

 

 

 

 

 

 

Gain on remeasurement of ownership interest in Unconsolidated Joint Venture

(145,010

)

 

 

 

 

 

 

Beneficial interest expense

(103,692

)

 

(52,579

)

 

(88,219

)

 

(51,107

)

Beneficial income tax expense – TRG and TCO

(4,735

)

 

(2,680

)

 

918

 

 

(2,387

)

Beneficial income tax expense – TCO

 

 

 

 

(110

)

 

 

Non-real estate depreciation

(3,447

)

 

 

 

(3,402

)

 

 

Preferred dividends and distributions

(17,353

)

 

 

 

(17,353

)

 

 

Funds from Operations attributable to partnership unitholders and participating securities of TRG

124,916

 

 

103,554

 

 

145,716

 

 

102,250

 

 

 

 

 

 

 

 

 

STRAIGHTLINE AND PURCHASE ACCOUNTING ADJUSTMENTS:

 

 

 

 

 

 

 

Net straight-line adjustments to rental revenues, recoveries, and ground rent expense at TRG%

4,427

 

 

181

 

 

2,082

 

 

1,597

 

Country Club Plaza purchase accounting adjustments – rental revenues at TRG%

 

 

257

 

 

 

 

1,409

 

The Mall at Green Hills purchase accounting adjustments – rental revenues

61

 

 

 

 

88

 

 

 

The Gardens Mall purchase accounting adjustments – rental revenues at TRG%

 

 

(816

)

 

 

 

 

The Gardens Mall purchase accounting adjustments – interest expense at TRG%

 

 

(1,056

)

 

 

 

 

 

 

 

 

 

 

 

 

(1) With the exception of the Supplemental Information, amounts include 100% of the Unconsolidated Joint Ventures. Amounts are net of intercompany transactions. The Unconsolidated Joint Ventures are presented at 100% in order to allow for measurement of their performance as a whole, without regard to our ownership interest.

 

(2) Upon adoption of ASC Topic 842, minimum rents and expense recoveries are now presented within a single revenue line item, Rental Revenues; the presentation of lease cancellation income has changed from Other income to Rental Revenues; the presentation of uncollectible tenant revenues has changed from Other Operating expense to Rental Revenues as a contra-revenue; and Other Operating expense includes certain indirect leasing costs, which were capitalizable under the previous lease accounting standard. As a result of the accounting change, an additional $4.2 million of leasing costs were expensed during the nine months ended September 30, 2019. Comparative periods presented were not adjusted to reflect the change in accounting.

 

Contacts

Erik Wright, Taubman, Manager, Investor Relations, 248-258-7390

ewright@taubman.com

Maria Mainville, Taubman, Director, Strategic Communications, 248-258-7469

mmainville@taubman.com

Read full story here

error: Content is protected !!