Taubman Centers Reports First Quarter Results

-- Funds from Operations Per Share up 2.9%

-- Adjusted Funds from Operations Per Share up 7.4%

-- Strong Balance Sheet

-- Maintains Annual FFO Guidance

BLOOMFIELD HILLS, Mich., April 29 /PRNewswire-FirstCall/ -- Taubman Centers,
Inc. (NYSE: TCO) today reported its financial results for the first quarter of
2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20080428/CLM116LOGO )

Net income allocable to common shareholders per diluted common share (EPS) for
the quarter ended March 31, 2009 was $0.22, versus $0.09 per diluted common
share for the quarter ended March 31, 2008.

For the quarter ended March 31, 2009, Funds from Operations (FFO) per diluted
share was $0.70, an increase of 2.9 percent from $0.68 for the quarter ended
March 31, 2008. The first quarter 2009 results include a $2.5 million
restructuring charge. Excluding this charge, Adjusted FFO per diluted share
was $0.73 for the quarter, an increase of 7.4 percent from the quarter ended
March 31, 2008. There were no adjustments in the first quarter of 2008.

"Our results are generally in line with our expectations," said Robert S.
Taubman, chairman, president and chief executive officer of Taubman Centers.
"They were positively impacted by an increase in lease cancellation income and
reduced general administrative and predevelopment expenses. In this difficult
environment, we are managing our costs, focusing on our core properties, and
staying alert for opportunities that may be created by this period of
uncertainty and upheaval."

Operating Statistics
Ending occupancy for the portfolio was 88.6 percent on March 31, 2009 versus
89.9 percent on March 31, 2008, a decline primarily due to the closing in late
2008 of three big box store locations at the company's value centers, which
were part of national bankruptcies. Average rent per square foot in the
company's 16 consolidated properties for the first quarter of 2009 was $43.96,
up 0.7 percent from the $43.64 for the first quarter of 2008. In the
unconsolidated properties, average rent was $45.08, up 1.9 percent from the
first quarter of 2008.

Mall tenant sales per square foot declined 13.5 percent from the first quarter
of 2008 and were down for nearly all categories. Categories that have been
more moderately impacted include junior apparel, family shoes and food.
Theaters - which are excluded from the company's sales per square foot numbers
because of their size - reported strong increases.

"To be comparable to our peers, we have begun reporting 12-month trailing
sales per square foot," said Mr. Taubman. "For the twelve month period ended
March 31, our mall tenant sales per square foot were down 6.6 percent - to
$522 per square foot."

Solid Balance Sheet
"In this unprecedented time, it's clear a solid balance sheet has never been a
more important corporate asset," said Lisa A. Payne, vice chairman and chief
financial officer of Taubman Centers. "The company has excellent liquidity
and solid balance sheet ratios. We have no debt maturities until the fall of
2010 and collectively through 2011, only about 13 percent of our share of
total debt matures." The company's secured credit lines total $590 million
and mature in 2011 with a one year extension option to 2012 on $550 million of
the lines. As of March 31, $334 million was available for use.

Guidance
The company is maintaining its guidance on 2009 FFO per diluted share in a
range of $2.69 to $2.94. Excluding the restructuring charge that was
recognized in the first quarter of 2009, the company expects 2009 Adjusted FFO
per diluted share to be in the range of $2.72 to $2.97. The company
anticipates its 2009 Net income allocable to common shareholders (EPS) will be
in the range of $0.69 to $0.99 per diluted common share.

Supplemental Investor Information Available
The company provides supplemental investor information along with its earnings
announcements, available online at www.taubman.com under "Investor Relations."
This includes the following:
-- Income Statement
-- Earnings Reconciliations
-- Changes in Funds from Operations and Earnings Per Share
-- Components of Other Income, Other Operating Expense, and Gains on Land
Sales and Other Nonoperating Income
-- Recoveries Ratio Analysis
-- Balance Sheets
-- Debt Summary
-- Other Debt, Equity and Certain Balance Sheet Information
-- Construction
-- Capital Spending
-- Operational Statistics
-- Owned Centers
-- Major Tenants in Owned Portfolio
-- Anchors in Owned Portfolio

Investor Conference Call
The company will host a conference call at 12:00 p.m. (EDT) on April 30 to
discuss these results, business conditions and the company's outlook for 2009.
The conference call will be simulcast at www.taubman.com under "Investor
Relations" as well as www.earnings.com and www.streetevents.com. An online
replay will follow shortly after the call and continue for 90 days. In
addition, the conference call will be available as a podcast at
www.reitcafe.com.

Taubman Centers is a real estate investment trust engaged in the development
and management of regional and super regional shopping centers. Taubman's 24
U.S. owned and/or managed properties, the most productive in the industry,
serve major markets from coast to coast. The company's Taubman Asia
subsidiary is working on retail projects in Macao, China and Incheon, South
Korea. Taubman Centers is headquartered in Bloomfield Hills, Michigan. For
more information about Taubman, visit www.taubman.com.

For ease of use, references in this press release to "Taubman Centers" or
"Taubman" mean Taubman Centers, Inc. 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.

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. Actual results may differ materially from those expected because
of various risks and uncertainties, including, but not limited to the ongoing
U.S. recession, the existing global credit and financial crisis and other
changes in general economic and real estate conditions, changes in the
interest rate environment and the availability of financing, and adverse
changes in the retail industry. Other risks and uncertainties are discussed in
the company's filings with the Securities and Exchange Commission including
its most recent Annual Report on Form 10-K.

TAUBMAN CENTERS, INC.
Table 1 - Summary of Results
For the Periods Ended March 31, 2009 and 2008
---------------------------------------------
(in thousands of dollars, except as indicated)

Three Months Ended
------------------
2009 2008 (1)
---- ----

Net income (1), (2) 24,526 23,516
Noncontrolling share of income of
consolidated joint ventures (1) (1,693) (1,176)
Distributions in excess of
noncontrolling share of income of
consolidated joint ventures (1) (2,137)
Noncontrolling share of income of TRG (1) (6,586) (5,916)
Distributions in excess of noncontrolling
share of income of TRG (1) (5,105)
TRG preferred distributions (615) (615)
Preferred dividends (3,658) (3,658)
Distributions to participating
securities of TRG (475) (362)
Net income attributable to
Taubman Centers, Inc. common
shareowners (1) 11,499 4,547
Net income per common share - basic
and diluted (1) 0.22 0.09
Beneficial interest in EBITDA -
Consolidated Businesses (2), (3) 77,689 77,217
Beneficial interest in EBITDA -
Unconsolidated Joint Ventures (3) 23,948 23,114
Funds from Operations (2), (3) 56,570 54,756
Funds from Operations attributable to
TCO (2), (3) 37,758 36,403
Funds from Operations per common share -
basic (2), (3) 0.71 0.69
Funds from Operations per common
share - diluted (2), (3) 0.70 0.68
Weighted average number of common
shares outstanding - basic 53,066,910 52,675,207
Weighted average number of common
shares outstanding - diluted 53,265,959 53,264,489
Common shares outstanding at end
of period 53,120,036 52,808,293
Weighted average units - Operating
Partnership - basic 79,507,119 79,232,651
Weighted average units - Operating
Partnership - diluted 80,577,430 80,693,195
Units outstanding at end of period -
Operating Partnership 79,557,721 79,365,737
Ownership percentage of the Operating
Partnership at end of period 66.8% 66.5%
Number of owned shopping centers at
end of period 23 23

Operating Statistics:
Mall tenant sales (4) 941,469 1,083,608
Ending occupancy 88.6% 89.9%
Average occupancy 88.8% 90.0%
Leased space at end of period 90.5% 93.1%
Mall tenant occupancy costs as a
percentage of tenant sales -
Consolidated Businesses (4) 18.4% 15.8%
Mall tenant occupancy costs as a
percentage of tenant sales -
Unconsolidated Joint Ventures (4) 16.1% 13.8%
Rent per square foot - Consolidated
Businesses (5) 43.96 43.64
Rent per square foot - Unconsolidated
Joint Ventures 45.08 44.24

(1) In January of 2009, the Company adopted Statement No. 160
"Noncontrolling Interests in Consolidated Financial Statements - an
amendment of ARB No. 51" (SFAS 160). Consequently, noncontrolling
interests in consolidated subsidiaries with equity balances of less
than zero are now allocated income equal to their ownership interests
in the subsidiaries. Under previous accounting, because the net equity
balances of the Operating Partnership and the outside partners in
certain consolidated joint ventures were less than zero, the income
attributable to the noncontrolling partners was equal to their share
of distributions. The net equity of these noncontrolling partners is
less than zero due to accumulated distributions in excess of net
income and not as a result of operating losses. Net income
attributable to Taubman Centers, Inc. common shareowners for the
period ended March 31, 2009 would have been $4.5 million or $0.08 per
common share if accounted for under the previous method of accounting
for noncontrolling interests prior to SFAS 160. Certain 2008 amounts
within tables 1 to 5 of this press release have been reclassified to
conform with 2009 classifications.

(2) Includes a $2.5 million restructuring charge for the quarter
ended March 31, 2009. No similar charge was incurred in 2008.

(3) Beneficial Interest in EBITDA represents the Operating Partnership's
share of the earnings before interest, income taxes, and depreciation
and amortization of its consolidated and unconsolidated businesses.
The Company believes Beneficial Interest in EBITDA provides a useful
indicator of operating performance, as it is customary in the real
estate and shopping center business to evaluate the performance of
properties on a basis unaffected by capital structure.

The National Association of Real Estate Investment Trusts (NAREIT)
defines Funds from Operations (FFO) as net income (computed in
accordance with Generally Accepted Accounting Principles (GAAP)),
excluding gains from extraordinary items and sales of properties, plus
real estate related depreciation and after adjustments for
unconsolidated partnerships and joint ventures. The Company believes
that FFO is a useful supplemental measure of operating performance for
REITs. Historical cost accounting for real estate assets implicitly
assumes that the value of real estate assets diminishes predictably
over time. Since real estate values instead have historically risen or
fallen with market conditions, the Company and most industry investors
and analysts have considered presentations of operating results that
exclude historical cost depreciation to be useful in evaluating the
operating performance of REITs. FFO is primarily used by the Company
in measuring performance and in formulating corporate goals and
compensation.

These non-GAAP measures as presented by the Company are not
necessarily comparable to similarly titled measures used by other
REITs due to the fact that not all REITs use common definitions. None
of these non-GAAP measures should be considered alternatives to net
income as an indicator of the Company's operating performance, and
they do not represent cash flows from operating, investing, or
financing activities as defined by GAAP.

(4) Based on reports of sales furnished by mall tenants.

(5) Average rent per square foot excludes a positive prior year
adjustment.

TAUBMAN CENTERS, INC.
Table 2 - Income Statement
For the Three Months Ended March 31, 2009 and 2008
----------------------------------------------------
(in thousands of dollars)

2009 2008 (1)
-------------------------- ------------------------
UNCON- UNCON-
SOLIDATED SOLIDATED
CONSOLIDATED JOINT CONSOLIDATED JOINT
BUSINESSES VENTURES (2) BUSINESSES VENTURES (2)
------------ -------------- ----------- -------------

REVENUES:
Minimum rents 87,436 38,967 86,570 38,411
Percentage rents 2,160 1,108 2,575 1,461
Expense recoveries 56,758 23,826 57,464 22,414
Management,
leasing, and
development
services 3,556 3,694
Other 7,780 2,189 7,114 1,788
----- ----- ----- -----
Total revenues 157,690 66,090 157,417 64,074

EXPENSES:
Maintenance,
taxes, and
utilities 44,541 16,037 43,540 15,348
Other operating 14,965 6,388 18,301 6,547
Restructuring
charge (3) 2,461
Management,
leasing, and
development
services 1,906 2,257
General and
administrative 6,888 8,333
Interest expense 36,233 15,950 36,982 15,875
Depreciation and
amortization 36,293 9,437 35,335 9,623
------ ----- ------ -----
Total expenses 143,287 47,812 144,748 47,393

Gains on land sales
and other
nonoperating income 235 54 1,803 319
--- -- ----- ---
14,638 18,332 14,472 17,000
====== ======
Income tax expense (270) (190)
Equity in income of
Unconsolidated
Joint Ventures 10,158 9,234
------ -----

Net income 24,526 23,516
Noncontrolling
interests:
Noncontrolling
share of income
of consolidated
joint ventures (1,693) (1,176)
Distributions in
excess of
noncontrolling
share of income of
consolidated
joint ventures (2,137)
TRG preferred
distributions (615) (615)
Noncontrolling
share of income
of TRG (6,586) (5,916)
Distributions in
excess of
noncontrolling
share of income
of TRG (5,105)
Distributions to
participating
securities of TRG (475) (362)
Preferred dividends (3,658) (3,658)
------ ------
Net income
attributable to
Taubman Centers, Inc.
common shareowners 11,499 4,547
====== =====

SUPPLEMENTAL
INFORMATION (3):
EBITDA - 100% (3) 87,164 43,719 86,789 42,498
EBITDA - outside
partners' share(3) (9,475) (19,771) (9,572) (19,384)
------ ------- ------ -------
Beneficial
interest in
EBITDA (3) 77,689 23,948 77,217 23,114
Beneficial
interest expense (31,360) (8,284) (32,154) (8,262)
Beneficial income
tax expense (270) (190)
Non-real estate
depreciation (880) (696)
Preferred
dividends and
distributions (4,273) (4,273)
------ ------ ------ ------
Funds from
Operations
contribution (3) 40,906 15,664 39,904 14,852
====== ====== ====== ======

Net straightline
adjustments to rental
revenue, recoveries,
and ground rent
expense at TRG% 80 55 593 61
== == === ==

(1) Certain amounts have been reclassified to conform to 2009
classifications.

(2) 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 the Company's ownership
interest. The Company accounts for its investments in the
Unconsolidated Joint Ventures under the equity method.

(3) In the first quarter of 2009, the Company recognized a restructuring
charge which primarily represents the costs of terminations of
personnel.

TAUBMAN CENTERS, INC.
Table 3 - Reconciliation of Net Income Attributable to Taubman Centers,
Inc. Common Shareowners to Funds from Operations and Adjusted Funds from
Operations
For the Periods Ended March 31, 2009 and 2008
-------------------------------------------------------------------------
(in thousands of dollars; amounts attributable to TCO may not recalculate
due to rounding)

Three Months Ended
------------------
2009 2008 (1)
---- ----

Net income
attributable to TCO common shareowners 11,499 4,547

Add (less) depreciation and amortization:
Consolidated businesses at 100% 36,293 35,335
Noncontrolling partners in consolidated joint
ventures (2,909) (3,568)
Share of unconsolidated joint ventures 5,506 5,618
Non-real estate depreciation (880) (696)

Add noncontrolling interests:
Noncontrolling share of income of TRG 6,586 5,916
Distributions in excess of noncontrolling share
of income of TRG 5,105
Distributions in excess of noncontrolling share of
income of consolidated joint ventures 2,137

Add distributions to participating securities of TRG 475 362
--- ---

Funds from Operations 56,570 54,756

TCO's average ownership percentage of TRG 66.7% 66.5%
---- ----

Funds from Operations attributable to TCO 37,758 36,403
====== ======

Funds from Operations 56,570 54,756

Restructuring charge 2,461
----- -----

Adjusted Funds from Operations (2) 59,031 54,756

TCO's average ownership percentage of TRG 66.7% 66.5%
---- ----

Adjusted Funds from Operations attributable to
TCO (2) 39,401 36,403
====== ======

(1) Certain amounts have been reclassified to conform to 2009
classifications.

(2) FFO in 2009 includes, and Adjusted FFO excludes, the restructuring
charge which primarily represents the costs of terminations of
personnel. The Company discloses this Adjusted FFO due to the
significance and infrequent nature of the charges. Given the
significance of the charges, the Company believes it is essential to a
reader's understanding of the Company's results of operations to
emphasize the impact on the Company's earnings measures. The adjusted
measures are not and should not be considered alternatives to net
income or cash flows from operating, investing, or financing
activities as defined by GAAP.

TAUBMAN CENTERS, INC.
Table 4 - Reconciliation of Net Income to Beneficial Interest in EBITDA
For the Periods Ended March 31, 2009 and 2008
-----------------------------------------------------------------------
(in thousands of dollars; amounts attributable to TCO may not recalculate
due to rounding)

Three Months Ended
------------------
2009 2008 (1)
---- ----

Net income 24,526 23,516

Add (less) depreciation and amortization:
Consolidated businesses at 100% 36,293 35,335
Noncontrolling partners in consolidated joint
ventures (2,909) (3,568)
Share of unconsolidated joint ventures 5,506 5,618

Add (less) interest expense and income tax expense:
Interest expense:
Consolidated businesses at 100% 36,233 36,982
Noncontrolling partners in consolidated
joint ventures (4,873) (4,828)
Share of unconsolidated joint ventures 8,284 8,262
Income tax expense 270 190

Less noncontrolling share of income of
consolidated joint ventures (1,693) (1,176)
------ ------

Beneficial Interest in EBITDA 101,637 100,331

TCO's average ownership percentage of TRG 66.7% 66.5%
---- ----

Beneficial Interest in EBITDA attributable to TCO 67,792 66,702
====== ======

(1)Certain amounts have been reclassified to conform to 2009
classifications.

TAUBMAN CENTERS, INC.
Table 5 - Balance Sheets
As of March 31, 2009 and December 31, 2008
------------------------------------------
(in thousands of dollars)

As of
---------------------------------
March 31, 2009 December 31, 2008
-------------- -----------------
Consolidated Balance Sheet of
Taubman Centers, Inc. (1):

Assets:
Properties 3,703,630 3,699,480
Accumulated depreciation and
amortization (1,077,936) (1,049,626)
---------- ----------
2,625,694 2,649,854
Investment in Unconsolidated Joint
Ventures 89,052 89,933
Cash and cash equivalents 41,731 62,126
Accounts and notes receivable, net 44,347 46,732
Accounts receivable from related parties 2,145 1,850
Deferred charges and other assets 119,156 124,487
------- -------
2,922,125 2,974,982
========= =========

Liabilities:
Notes payable 2,809,631 2,796,821
Accounts payable and accrued
liabilities 235,180 262,226
Dividends and distributions payable 22,002
Distributions in excess of investments
in and net income of Unconsolidated
Joint Ventures 154,091 154,141
------- -------
3,198,902 3,235,190

Equity:
Taubman Centers, Inc. Shareowners' Equity:
Series B Non- Participating Convertible
Preferred Stock 26 26
Series G Cumulative Redeemable Preferred
Stock
Series H Cumulative Redeemable Preferred
Stock
Common Stock 531 530
Additional paid-in capital 557,338 556,145
Accumulated other comprehensive
income (loss) (29,673) (29,778)
Dividends in excess of net income (736,715) (726,097)
-------- --------
(208,493) (199,174)
Noncontrolling interests:
Noncontrolling interests in
consolidated joint ventures (89,727) (90,251)
Noncontrolling interests in TRG (7,774)
Preferred Equity of TRG 29,217 29,217
------ ------
(68,284) (61,034)
------- -------
(276,777) (260,208)
-------- --------
2,922,125 2,974,982
========= =========

(1) Certain 2008 amounts have been reclassified to conform to 2009
classifications.

Combined Balance Sheet of Unconsolidated Joint Ventures:

Assets:
Properties 1,087,872 1,087,341
Accumulated depreciation and
amortization (373,266) (366,168)
-------- --------
714,606 721,173
Cash and cash equivalents 17,884 28,946
Accounts and notes receivable 22,775 26,603
Deferred charges and other assets 19,835 20,098
------ ------
775,100 796,820
======= =======

Liabilities:
Notes payable 1,101,046 1,103,903
Accounts payable and other liabilities 45,989 61,570
------ ------
1,147,035 1,165,473

Accumulated Deficiency in Assets:
Accumulated deficiency in assets - TRG (195,186) (194,178)
Accumulated deficiency in assets -
Joint Venture Partners (163,182) (160,862)
Accumulated other comprehensive
income (loss) - TRG (7,231) (7,288)
Accumulated other comprehensive
income (loss) - Joint Venture
Partners (6,336) (6,325)
------ ------
(371,935) (368,653)
-------- --------
775,100 796,820
======= =======

TAUBMAN CENTERS, INC.
Table 6 - Annual Outlook
-----------------------------------------------------------------
(all dollar amounts per common share on a diluted basis;
amounts may not add due to rounding)

Range for Year
Ended
December 31, Range for
2009 Before Year Ended
Restructuring Restructuring December
Charge Charge (1) 31, 2009
------------- ---------- ---------

Funds from Operations
per common share 2.72 2.97 (0.03) 2.69 2.94

Real estate depreciation
- TRG (1.85) (1.80) (1.85) (1.80)

Distributions on
participating
securities of TRG (0.02) (0.02) (0.02) (0.02)

Depreciation of TCO's
additional basis in TRG (0.13) (0.13) (0.13) (0.13)
----- ----- ----- -----

Net income attributable
to common shareowners,
per common share 0.72 1.02 (0.03) 0.69 0.99
==== ==== ===== ==== ====

(1) During the first quarter of 2009, the Company recognized a
restructuring charge of $2.5 million, which represents primarily the
cost of terminations of personnel.

SOURCE Taubman Centers, Inc.

Barbara Baker of Taubman, Vice President, Investor Relations, +1-248-258-7367,
bbaker@taubman.com