Taubman Centers (TCO) 8-K Taubman Centers Announces Second Quarter Results

Exhibit 99

Tauman Centers, Inc.               T 248.258.6800
200 East Long Lake Road          www.taubman.com
Suite 300
Bloomfield Hills, Michigan
48304-2324

CONTACT:
Barbara Baker
Vice President, Investor Relations
248-258-7367
bbaker@taubman.com

FOR IMMEDIATE RELEASE

TAUBMAN CENTERS ANNOUNCES SECOND QUARTER RESULTS

• Solid Core: Sales, Rents and Occupancy Up

• Strong Favorable Ruling on Oyster Bay

• Quarter Impacted by Lower Lease Cancellation Income and Higher Predevelopment Costs

BLOOMFIELD HILLS, Mich., July 24, 2008 — Taubman Centers, Inc. (NYSE: TCO) today announced its financial results for the second quarter of 2008.

Net income allocable to common shareholders per diluted share (EPS) was $0.01 for the quarter ended June 30, 2008 versus $0.16 for the quarter ended June 30, 2007. EPS for the six months ended June 30, 2008 was $0.09 per diluted common share, versus $0.36 per diluted common share for the first six months of 2007.

Taubman Centers’ Funds From Operations (FFO) per diluted share was $0.66 for the quarter ended June 30, 2008 versus $0.68 for the second quarter of 2007. For the six months ended June 30, 2008, FFO per diluted share was $1.34, up 0.8 percent from $1.33 for the first six months of 2007.

“Contributions from our existing centers and the new Mall at Partridge Creek(Clinton Township, Mich.)continued to be strong this quarter,” said Robert S. Taubman, chairman, president and chief executive officer of Taubman Centers. “These were offset by an increase in predevelopment expense as we expand our development platform in the U.S. and Asia and a decline in lease cancellation revenue compared with the record level of this income last year.”

Occupancy, Rents and Sales Up

The company reported positive fundamentals for both the quarter and year to date periods. Ending occupancy at June 30, 2008 was 90.0 percent, up 0.1 percent from June 30, 2007. Leased space was 92.6 percent at June 30, 2008, up 0.2 percent from June 30, 2007. Average rents in the consolidated properties were $45.12, up 3.4 percent from $43.64 for the second quarter of 2007. Average rents in the unconsolidated properties were $45.04, up 7.2 percent from $42.00 for the second quarter of 2007. Tenant sales per square foot were up 3.3 percent for the quarter and 3.2 percent year to date.

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“Our core fundamentals are on track,” said Mr. Taubman. “In light of general economic conditions, we are pleased to report increases in sales, occupancy and rents. This is a testament to our high quality mall portfolio.”

Focused on Growth

“With our strong balance sheet and high performing centers, the company is well positioned to continue to grow externally,” said Mr. Taubman. “In the U.S. we were delighted to announce this quarter our involvement in Sarasota’s University Town Center, a 900,000 square foot, two-level regional shopping center anchored by Nordstrom, Neiman Marcus and Macy’s.” Construction is expected to begin this fall, and the center is expected to open in November 2010.

In the quarter the company received a very favorable ruling from the Supreme Court of the State of New York, Suffolk County, ordering the Oyster Bay Town Board to immediately issue a special use permit for The Mall at Oyster Bay. “This is the 10^th straight positive ruling from the courts,” added Mr. Taubman. “While the Town has once again appealed, we have filed a motion to expedite it. We are looking forward to beginning construction as soon as possible on this outstanding project to be anchored by Neiman Marcus, Nordstrom and Barneys New York.”

In Asia, the company announced that Korean retail giant Lotte Department Store will anchor Songdo Shopping Center in Incheon, South Korea. The twelve-level flagship store, which includes two levels of parking, will be approximately 522,000 square feet. The center is expected to begin construction in September 2008.

Guidance

The company is reducing its guidance for 2008 FFO per share to the range of $3.01 to $3.07 from the previous range of $3.05 to $3.12. The change is primarily due to an increase in predevelopment spending in the U.S. and in Asia, which is now anticipated to increase by as much as $3 million over prior estimates.

Net income allocable to common shareholders for the year is expected to be in the range of $0.64 to $0.84 per share.

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Supplemental Investor Information Available

The company provides supplemental investor information along with its earnings announcements, available online atwww.taubman.com under “Investor Relations.” This includes the following:

• Income Statements

• 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 on July 25 at 11:00 a.m. (EDT) to discuss these results and will simulcast the conference call atwww.taubman.com under “Investing” as well aswww.earnings.com andwww.streetevents.com. The online replay will follow shortly after the call and continue for approximately 90 days. In addition, the conference call will be available as a podcast atwww.reitcafe.com.

Taubman Centers, Inc. (NYSE: TCO) 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 developing retail projects in Macao, China and Incheon, South Korea. Taubman Centers is headquartered in Bloomfield Hills, Michigan. For more information about Taubman, visitwww.taubman.com.

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 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.

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TAUBMAN CENTERS, INC.
Table 1 — Summary of Results
For the Three and Six Months Ended June 30, 2008 and 2007
(in thousands of dollars, except as indicated)

	Three Months Ended						Six Months Ended
	2008			2007			2008			2007
Income before minority and preferred interests		21,414			26,002			44,930			52,552
Minority share of consolidated joint ventures (1)		(1,130	)		(621	)		(2,306	)		(2,534	)
Distributions in excess of minority share of income of consolidated joint ventures		(4,258	)		(1,649	)		(6,395	)		(1,041	)
Minority share of income of TRG (1)		(4,505	)		(7,187	)		(10,421	)		(14,928	)
Distributions in excess of minority share of income of TRG		(6,874	)		(3,437	)		(12,341	)		(6,270	)
TRG preferred distributions		(615	)		(615	)		(1,230	)		(1,230	)
Net income		4,032			12,493			12,237			26,549
Preferred dividends		(3,659	)		(3,659	)		(7,317	)		(7,317	)
Net income allocable to common shareowners		373			8,834			4,920			19,232
Net income per common share — basic		0.01			0.17			0.09			0.36
Net income per common share — diluted		0.01			0.16			0.09			0.36
Beneficial interest in EBITDA — consolidated businesses (2)		75,360			74,247			152,577			146,010
Beneficial interest in EBITDA — unconsolidated joint ventures (2)		22,644			23,536			45,758			45,420
Funds from Operations (2)		53,213			55,954			107,969			109,873
Funds from Operations allocable to TCO (2)		35,421			36,968			71,824			72,495
Funds from Operations per common share — basic (2)		0.67			0.69			1.36			1.36
Funds from Operations per common share — diluted (2)		0.66			0.68			1.34			1.33
Weighted average number of common shares outstanding — basic		52,859,653			53,412,542			52,767,430			53,418,055
Weighted average number of common shares outstanding — diluted		53,431,974			54,056,260			53,348,232			54,066,230
Common shares outstanding at end of period		52,892,604			52,849,206
Weighted average units — Operating Partnership — basic		79,411,822			80,843,466			79,322,237			80,960,865
Weighted average units — Operating Partnership — diluted		80,855,405			82,358,446			80,774,301			82,480,301
Units outstanding at end of period — Operating Partnership		79,440,048			80,156,503
Ownership percentage of the Operating Partnership at end of period		66.6	%		65.9	%
Number of owned shopping centers at end of period		23			22			23			22
Operating Statistics:
Mall tenant sales (3)		1,116,027			1,061,767			2,199,635			2,104,464
Ending occupancy		90.0	%		89.9	%		90.0	%		89.9	%
Ending occupancy — comparable (4)		90.1	%		90.1	%		90.1	%		90.1	%
Average occupancy		89.9	%		89.7	%		89.9	%		89.6	%
Average occupancy — comparable (4)		90.0	%		90.0	%		90.1	%		89.9	%
Leased space at end of period		92.6	%		92.4	%		92.6	%		92.4	%
Leased space at end of period — comparable (4)		92.7	%		92.6	%		92.7	%		92.6	%
Mall tenant occupancy costs as a percentage of tenant sales — consolidated businesses (3)		15.4	%		15.6	%		15.6	%		15.5	%
Mall tenant occupancy costs as a percentage of tenant sales — unconsolidated joint ventures (3)		13.7	%		13.6	%		13.8	%		13.3	%
Rent per square foot — consolidated businesses (4)		45.12			43.64			44.84			43.75
Rent per square foot — unconsolidated joint ventures (4)		45.04			42.00			44.48			41.87

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(1)	Because the net equity balances of the Operating Partnership and the outside partners in certain consolidated joint ventures are less than zero, the income allocated to the minority and outside partners during the three and six months ended June 30, 2008 and 2007 is equal to their share of distributions. The net equity of these minority partners is less than zero due to accumulated distributions in excess of net income and not as a result of operating losses.
(2)	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 (loss) (computed in accordance with Generally Accepted Accounting Principles (GAAP)), excluding gains (or losses) 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.
(3)	Based on reports of sales furnished by mall tenants.
(4)	Statistics exclude The Mall at Partridge Creek and The Pier Shops at Caesars. The 2007 statistics have been restated to include comparable centers to 2008.

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TAUBMAN CENTERS, INC.
Table 2 — Income Statement
For the Three Months Ended June 30, 2008 and 2007
(in thousands of dollars)

	2008						2007
				UNCONSOLIDATED						UNCONSOLIDATED
	CONSOLIDATED			JOINT			CONSOLIDATED			JOINT
	BUSINESSES			VENTURES (1)			BUSINESSES			VENTURES (1)
REVENUES:
Minimum rents		87,583			38,797			79,507			37,135
Percentage rents		1,325			458			997			1,592
Expense recoveries		60,384			21,664			57,923			22,818
Management, leasing, and development services		3,891						3,632
Other		7,229			2,578			10,215			2,321
Total revenues		160,412			63,497			152,274			63,866
EXPENSES:
Maintenance, taxes, and utilities		46,485			16,080			45,587			15,953
Other operating		19,695			5,587			16,078			4,778
Management, leasing, and development services		2,421						1,796
General and administrative		7,943						7,015
Interest expense		35,972			16,278			32,190			16,617
Depreciation and amortization		36,179			9,839			33,568			9,789
Total expenses		148,695			47,784			136,234			47,137
Gains on land sales and other nonoperating income		1,456			160			723			367
		13,173			15,873			16,763			17,096
Income tax expense		(250	)
Equity in income of Unconsolidated Joint Ventures		8,491						9,239
Income before minority and preferred interests		21,414						26,002
Minority and preferred interests:
TRG preferred distributions		(615	)					(615	)
Minority share of consolidated joint ventures		(1,130	)					(621	)
Distributions in excess of minority share of income of consolidated joint ventures		(4,258	)					(1,649	)
Minority share of income of TRG		(4,505	)					(7,187	)
Distributions in excess of minority share of income of TRG		(6,874	)					(3,437	)
Net income		4,032						12,493
Preferred dividends		(3,659	)					(3,659	)
Net income allocable to common shareowners		373						8,834
SUPPLEMENTAL INFORMATION:
EBITDA — 100%		85,324			41,990			82,521			43,502
EBITDA — outside partners’ share		(9,964	)		(19,346	)		(8,274	)		(19,966	)
Beneficial interest in EBITDA		75,360			22,644			74,247			23,536
Beneficial interest expense		(31,065	)		(8,457	)		(28,554	)		(8,325	)
Beneficial income tax expense		(250	)
Non-real estate depreciation		(745	)					(676	)
Preferred dividends and distributions		(4,274	)					(4,274	)
Funds from Operations contribution		39,026			14,187			40,743			15,211
Net straightline adjustments to rental revenue, recoveries, and ground rent expense at TRG %		475			52			344			135

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

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TAUBMAN CENTERS, INC.
Table 3- Income Statement
For the Year to Date Periods Ended June 30, 2008 and 2007
(in thousands of dollars)

	2008						2007
				UNCONSOLIDATED						UNCONSOLIDATED
	CONSOLIDATED			JOINT			CONSOLIDATED			JOINT
	BUSINESSES			VENTURES (1)			BUSINESSES			VENTURES (1)
REVENUES:
Minimum rents		174,153			77,208			158,162			75,571
Percentage rents		3,900			1,919			3,305			2,631
Expense recoveries		117,848			44,078			108,546			45,409
Management, leasing, and development services		7,585						8,522
Other		14,343			4,366			18,765			4,083
Total revenues		317,829			127,571			297,300			127,694
EXPENSES:
Maintenance, taxes, and utilities		90,025			31,428			83,506			33,698
Other operating		37,996			12,134			32,874			11,179
Management, leasing, and development services		4,678						4,586
General and administrative		16,276						14,336
Interest expense		72,954			32,153			61,884			34,421
Depreciation and amortization		71,514			19,462			66,101			19,955
Total expenses		293,443			95,177			263,287			99,253
Gains on land sales and other nonoperating income		3,259			479			1,114			814
		27,645			32,873			35,127			29,255
Income tax expense		(440	)
Equity in income of Unconsolidated Joint Ventures		17,725						17,425
Income before minority and preferred interests		44,930						52,552
Minority and preferred interests:
TRG preferred distributions		(1,230	)					(1,230	)
Minority share of consolidated joint ventures		(2,306	)					(2,534	)
Distributions in excess of minority share of income of consolidated joint ventures		(6,395	)					(1,041	)
Minority share of income of TRG		(10,421	)					(14,928	)
Distributions in excess of minority share of income of TRG		(12,341	)					(6,270	)
Net income		12,237						26,549
Preferred dividends		(7,317	)					(7,317	)
Net income allocable to common shareowners		4,920						19,232
SUPPLEMENTAL INFORMATION:
EBITDA — 100%		172,113			84,488			163,112			83,631
EBITDA — outside partners’ share		(19,536	)		(38,730	)		(17,102	)		(38,211	)
Beneficial interest in EBITDA		152,577			45,758			146,010			45,420
Beneficial interest expense		(63,219	)		(16,719	)		(55,046	)		(16,627	)
Beneficial income tax expense		(440	)
Non-real estate depreciation		(1,441	)					(1,337	)
Preferred dividends and distributions		(8,547	)					(8,547	)
Funds from Operations contribution		78,930			29,039			81,080			28,793
Net straightline adjustments to rental revenue, recoveries, and ground rent expense at TRG %		1,068			113			715			239

(1) With the exception of the Supplemental Information, amounts include 100% of the Unconsolidated Joint Ventures. Amounts are net of intercompany transactions. The Unconsolidated Joint Ventures are presented at 100% in order to allow for measurement of their performance as a whole, without regard to the Company’s ownership interest. In its consolidated financial statements, the Company accounts for its investments in the Unconsolidated Joint Ventures under the equity method.

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TAUBMAN CENTERS, INC.
Table 4- Reconciliation of Net Income Allocable to Common Shareowners to Funds from Operations
For the Periods Ended June 30, 2008 and 2007
(in thousands of dollars; amounts allocable to TCO may not recalculate due to rounding)

	Three Months Ended						Year To Date
	2008			2007			2008			2007
Net income allocable to common shareowners		373			8,834			4,920			19,232
Add (less) depreciation and amortization:
Consolidated businesses at 100%		36,179			33,568			71,514			66,101
Minority partners in consolidated joint ventures		(3,927	)		(4,017	)		(7,495	)		(7,730	)
Share of unconsolidated joint ventures		5,696			5,972			11,314			11,368
Non-real estate depreciation		(745	)		(676	)		(1,441	)		(1,337	)
Add minority interests:
Minority share of income of TRG		4,505			7,187			10,421			14,928
Distributions in excess of minority share of income of TRG		6,874			3,437			12,341			6,270
Distributions in excess of minority share of income of consolidated joint ventures		4,258			1,649			6,395			1,041
Funds from Operations		53,213			55,954			107,969			109,873
TCO’s average ownership percentage of TRG		66.6	%		66.1	%		66.5	%		66.0	%
Funds from Operations allocable to TCO		35,421			36,968			71,824			72,495

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TAUBMAN CENTERS, INC.
Table 5- Reconciliation of Net Income to Beneficial Interest in EBITDA
For the Periods Ended June 30, 2008 and 2007
(in thousands of dollars; amounts allocable to TCO may not recalculate due to rounding)

	Three Months Ended							Year To Date
	2008			2007				2008			2007
Net income		4,032			12,493				12,237			26,549
Add (less) depreciation and amortization:
Consolidated businesses at 100%		36,179			33,568				71,514			66,101
Minority partners in consolidated joint ventures		(3,927	)		(4,017	)			(7,495	)		(7,730	)
Share of unconsolidated joint ventures		5,696			5,972				11,314			11,368
Add (less) preferred interests, interest expense, and income tax expense:
Preferred distributions		615			615				1,230			1,230
Interest expense:
Consolidated businesses at 100%		35,972			32,190				72,954			61,884
Minority partners in consolidated joint ventures		(4,907	)		(3,636	)			(9,735	)		(6,838	)
Share of unconsolidated joint ventures		8,457			8,325				16,719			16,627
Income tax expense		250					��		440
Add minority interests:
Minority share of income of TRG		4,505			7,187				10,421			14,928
Distributions in excess of minority share of income of TRG		6,874			3,437				12,341			6,270
Distributions in excess of minority share of income of consolidated joint ventures		4,258			1,649				6,395			1,041
Beneficial Interest in EBITDA		98,004			97,783				198,335			191,430
TCO’s average ownership percentage of TRG		66.6	%		66.1	%			66.5	%		66.0	%
Beneficial Interest in EBITDA allocable to TCO		65,235			64,604				131,937			126,308

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TAUBMAN CENTERS, INC.
Table 6- Balance Sheets
As of June 30, 2008 and December 31, 2007
(in thousands of dollars)

	As of
	June 30, 2008			December 31, 2007
Consolidated Balance Sheet of Taubman Centers, Inc.:
Assets:
Properties		3,785,814			3,781,136
Accumulated depreciation and amortization		(986,366	)		(933,275	)
		2,799,448			2,847,861
Investment in Unconsolidated Joint Ventures		92,377			92,117
Cash and cash equivalents		33,575			47,166
Accounts and notes receivable, net		43,554			52,161
Accounts and notes receivable from related parties		2,024			2,283
Deferred charges and other assets		226,633			109,719
		3,197,611			3,151,307
Liabilities:
Notes payable		2,774,156			2,700,980
Accounts payable and accrued liabilities		248,810			296,385
Dividends and distributions payable		21,950			21,839
Distributions in excess of investments in and net income of Unconsolidated Joint Ventures		153,344			100,234
		3,198,260			3,119,438
Preferred Equity of TRG		29,217			29,217
Minority interests in TRG and consolidated joint ventures		16,345			18,494
Shareowners’ Equity:
Series B Non-Participating Convertible Preferred Stock		27			27
Series G Cumulative Redeemable Preferred Stock
Series H Cumulative Redeemable Preferred Stock
Common Stock		529			526
Additional paid-in capital		550,917			543,333
Accumulated other comprehensive income (loss)		(7,384	)		(8,639	)
Dividends in excess of net income		(590,300	)		(551,089	)
		(46,211	)		(15,842	)
		3,197,611			3,151,307
Combined Balance Sheet of Unconsolidated Joint Ventures (1):
Assets:
Properties		1,067,183			1,056,380
Accumulated depreciation and amortization		(350,487	)		(347,459	)
		716,696			708,921
Cash and cash equivalents		19,805			40,097
Accounts and notes receivable		18,779			26,271
Deferred charges and other assets		24,648			18,229
		779,928			793,518
Liabilities:
Notes payable		1,111,158			1,003,463
Accounts payable and other liabilities		42,024			55,242
		1,153,182			1,058,705
Accumulated Deficiency in Assets:
Accumulated deficiency in assets — TRG		(206,297	)		(149,009	)
Accumulated deficiency in assets — Joint Venture Partners		(168,862	)		(112,709	)
Accumulated other comprehensive income (loss) — TRG		402			(2,354	)
Accumulated other comprehensive income (loss) — Joint Venture Partners		1,503			(1,115	)
		(373,254	)		(265,187	)
		779,928			793,518

(1) Amounts exclude University Town Center.

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TAUBMAN CENTERS, INC.
Table 7 — 2008 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, 2008
Funds from Operations per common share		3.01		3.07
Real estate depreciation — TRG		(1.94	)	(1.87	)
Depreciation of TCO’s additional basis in TRG		(0.13	)	(0.13	)
Distributions in excess of earnings allocable to minority interest		(0.30	)	(0.23	)
Net income allocable to common shareowners, per common share		0.64		0.84