Taubman Sees Rise in Net Income, FFO

Adjusted FFO, taking into account a $2.5 million restructuring charge, was $0.73, a 7.4% increase from 2008.

"Our results are generally in line with our expectations," says Robert Taubman, chairman, president and CEO. "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."

As with most retail-focused companies, vacancy rose slightly during the first quarter due to big boxes closing. Taubman's occupancy fell to 88.6% "due to the closing in late 2008 of threebig box store locations at the company's value centers, which were part of nationalbankruptcies," a company official says.

Tenant sales have declined 13.5% over the past year. "To be comparable to our peers, we have begun reporting 12-month trailing sales per square foot," says 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."

Unlike some of the other retailers, Taubman doesn't have any debt maturing this year. The company won't have any maturities until fall 2010 with the large bulk in 2011. "In this unprecedented time, it's clear a solid balance sheet has never been a more important corporate asset," says Lisa Payne, CFO. "The company has excellent liquidity and solid balance sheet ratios."

Locally-based Taubman has a hand in 24 US retail locations. It additionally has projects or properties in Macao, China and Incheon, South Korea.