BLOOMFIELD HILLS, MI-A strong year of higher occupancies and rents, highlighted by the industry record of average tenants sales of $500 per sf helped produce "an outstanding quarter and an outstanding year" for Taubman Centers Inc., according to company president, chairman and CEO Robert Taubman.
Taubman unveiled the good news at the company's Q4 2005 conference on Tuesday. "Occupancy was up and looks good for 2006," Taubman said, discussing the company's national portfolio. "Sales have grown for three consecutive months. Developments and expansions in the US are moving nicely, meaning we're confident we'll continue to achieve our long-term target of 8% to 10% FFO."
In the meantime, the portfolio's overall average occupancy, through joint venture and direct ownership, was 90.3% at the end of 2005, compared to the 89.6% in the same period from the year before.
Taubman touted the average tenant sales per sf of $508 as a true success story, however, noting that average sales per sf is by far the most important measure of retail success. "The more a center's environment and merchandise mix are appealing to shoppers, the more productive the center's retailers become, the higher rents the retailers can pay, the more the landlord and its investors are rewarded, the better able the landlord is to keep the properties appealing to shoppers," he told investors.
Other events for 2005 included formation of Taubman Asia, Ltd., the company's launching entity for expansion in Asia. "Progress in Asia is good, and we have plans to commit to a project in 2006," Taubman said during the conference call. "This would suggest an opening there in the 2008 to 2010 time frame."
Additional 2005 activities included investment in the casino/retail project, the Pier at Caesars in Atlantic City; signing of five Nordstrom stores to open in Cherry Creek Shopping Center in Denver; Waterside Shops at Pelican Bay in Naples, FL; the Mall at Partridge Creek in Clinton Township, MI; the Mall at Oyster Bay in Syosset, Long Island, NY; and Twelve Oaks Mall in Novi, MI.
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