Taubman Centers, Inc. Issues Third Quarter Results

Rhea-AI Summary

Taubman Centers, Inc. (TCO) reported Q3 2020 financial results, showing a net loss of $30 million or $0.49 per share, primarily due to pandemic impacts and a significant litigation settlement from 2019. Funds from Operations (FFO) were $0.39 per diluted share, while Adjusted FFO was $0.60. Tenant sales per square foot showed improvement, and nearly 94% of U.S. tenants have reopened. The company significantly reduced capital expenditures by $135 million, enhancing liquidity to $455 million. The recent opening of Starfield Anseong in South Korea saw strong early sales, generating nearly $32 million in ten days.

Positive

• Strong early sales at Starfield Anseong, generating nearly $32 million in the first ten days.
• U.S. tenant sales improved consistently each month since May 2020.
• Total liquidity increased to $455 million, up $90 million from Q2 2020.

Negative

• Net loss of $30 million in Q3 2020, attributed to COVID-19 and litigation settlements.
• Occupancy in U.S. comparable centers decreased to 89.9%, down 2.7% year-over-year.
• Significant drop in Funds from Operations (FFO) growth rate, down 55.7%.

BLOOMFIELD HILLS, Mich.--(BUSINESS WIRE)--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 19^th, 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	%