Business Wire | Nov 9, 2020 04:19PM EST

Taubman Centers, Inc. Issues Third Quarter Results

Nov. 09, 2020

BLOOMFIELD HILLS, Mich.--(BUSINESS WIRE)--Nov. 09, 2020--Taubman Centers, Inc. (NYSE: TCO) today reported financial results for the third quarter of 2020.

September September September September 30, 2020 30, 2019 30, 2020 30, 2019 Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended

Net income (loss)attributable to common ($30,072)^ $216,873 ($44,269)^ $239,223shareowners, diluted (in (1) (1)thousands)

Net income (loss)attributable to common ($0.49)^(1) $3.48 ($0.72)^(1) $3.84shareowners (EPS) perdiluted common share

Funds from Operations(FFO) per diluted common $0.39 $0.88 $1.47 $2.59share

Growth rate (55.7)% (43.2)%

Adjusted FFO (AFFO) per $0.60^(2) $0.86^ (3) $1.90^(2) $2.74^(3)diluted common share

Growth rate (30.2)% (30.7)%

(1) Net income (loss) and EPS for the three and nine-month periods endedSeptember 30, 2020 were lower primarily due to the sale of 50 percent of ourinterest in Starfield Hanam (Hanam, South Korea) and a litigation settlementrelated to The Mall of San Juan that resulted in the recognition of gainstotaling approximately $3.30 per diluted common share in the third quarter of2019, 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 impairmentcharge 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 ananchor space of $0.06 per diluted common share. EPS for the nine-month periodended September 30, 2020 also included gains totaling approximately $0.28 perdiluted common share related to the sale of 50 percent of our interest inCityOn.Xi'an (Xi'an, China), as well as accelerated amortization of anallowance 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, 2020excluded costs related to the Simon Property Group, Inc. transaction,restructuring charges, fluctuations in the fair value of equity securities andadjustments to the previously recognized promote fee (net of tax) related toStarfield Hanam recorded last year. AFFO for the nine-month period endedSeptember 30, 2020 also excluded deferred income tax expense incurred relatedto the sale of CityOn.Xi'an and costs associated with the Taubman AsiaPresident transition.

(3) AFFO for the three and nine-month periods ended September 30, 2019excluded restructuring charges, a promote fee (net of tax) related toStarfield Hanam and costs associated with shareholder activism. AFFO for thenine-month period ended September 30, 2019 also excluded pre-closing costsrelated to the sale of our interest in three Taubman Asia properties toBlackstone 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 19th, 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 EndedSeptember 30, 2020 and 2019

(in thousands ofdollars, except as Three Months Ended Year to Dateindicated)

2020 2019 2020 2019

Net income (loss) (36,648 ) 316,390 (41,959 ) 363,005

Noncontrolling shareof income (loss) of 308 (958 ) (1,015 ) (3,219 )consolidated jointventures

Noncontrolling shareof (income) loss of 12,052 (93,690 ) 16,653 (103,899 )TRG

Distributions toparticipating (597 ) (595 ) (1,817 )securities of TRG

Preferred stock (5,784 ) (5,784 ) (17,353 ) (17,353 )dividends

Net income (loss)attributable to (30,072 ) 215,361 (44,269 ) 236,717 Taubman Centers, Inc.common shareholders

Net income (loss) per (0.49 ) 3.52 (0.72 ) 3.87 common share - basic

Net income (loss) percommon share - (0.49 ) 3.48 (0.72 ) 3.84 diluted

Funds from Operationsattributable topartnership 34,458 78,387 130,379 228,470 unitholders andparticipatingsecurities of TRG (1)

Funds from Operationsattributable to TCO's 24,226 54,747 91,316 160,544 common shareholders(1)

Funds from Operationsper common share - 0.39 0.89 1.48 2.62 basic (1)

Funds from Operationsper common share - 0.39 0.88 1.47 2.59 diluted (1)

Adjusted Funds fromOperationsattributable topartnership 53,640 75,977 168,542 241,489 unitholders andparticipatingsecurities of TRG (1)

Adjusted Funds fromOperationsattributable to TCO's 37,719 53,064 118,108 169,648 common shareholders(1)

Adjusted Funds fromOperations per common 0.61 0.87 1.92 2.77 share - basic (1)

Adjusted Funds fromOperations per common 0.60 0.86 1.90 2.74 share - diluted (1)

Weighted averagenumber of common 61,696,565 61,211,249 61,512,816 61,169,279 shares outstanding -basic

Weighted averagenumber of common 61,696,565 62,245,414 61,512,816 62,232,496 shares outstanding -diluted

Common sharesoutstanding at end of 61,723,103 61,213,170 period

Weighted averageunits - Operating 87,713,880 87,641,965 87,696,394 87,097,595 Partnership - basic

Weighted averageunits - Operating 88,874,258 88,676,130 88,807,212 88,160,812 Partnership - diluted

Units outstanding atend of period - 87,719,766 87,643,886 Operating Partnership

Ownership percentageof the Operating 70.4 % 69.8 % Partnership at end ofperiod

Number of ownedshopping centers at 24 24 end of period

Operating Statistics:

NOI at 100% - ) ) ) )comparable centers - (16.9 % (2.5 % (14.4 % (1.3 %growth % (1)(2)

NOI at 100% -comparable centersincluding lease ) )cancellation income (16.9 % (14.0 % at constantcurrency - growth %(1)

NOI at 100% -comparable centers ) ) )excluding lease (27.2 % (1.5 % (18.3 % 0.3 %cancellation income -growth % (1)(2)

NOI at 100% -comparable centersexcluding lease ) ) )cancellation income (27.2 % (0.9 % (17.9 % 1.1 %at constantcurrency - growth %(1)(2)

Beneficial interestin NOI - comparable ) )centers including (18.3 % (14.5 % lease cancellationincome - growth % (1)

Beneficial interestin NOI - comparablecenters including ) )lease cancellation (18.3 % (14.4 % incomeat constant currency- growth % (1)

Beneficial interestin NOI - comparable ) )centers excluding (29.0 % (18.7 % lease cancellationincome - growth % (1)

Beneficial interestin NOI - comparablecenters excluding ) )lease cancellation (29.0 % (18.5 % incomeat constant currency- growth % (1)

Beneficial interestin NOI - totalportfolio excluding (33.9 ) 0.7 % (22.8 ) 3.6 %lease cancellation % %income - growth % (1)(2)

Average rent persquare foot - U.S. 65.24 70.52 68.45 70.97 ConsolidatedBusinesses (3)

Average rent persquare foot - U.S. 53.23 56.03 52.44 55.91 UJVs (3)

Average rent persquare foot - 59.28 63.36 60.52 63.48 Combined U.S. centers(3)

Average rent persquare foot growth % (6.4 ) (4.7 ) - U.S. comparable % %centers (3)

Ending occupancy - 88.5 % 91.7 % all U.S. centers

Ending occupancy -U.S. comparable 89.9 % 92.6 % centers (3)

Leased space - all 91.1 % 94.7 % U.S. centers

Leased space - U.S.comparable centers 92.6 % 95.6 % (3)

Mall tenant sales - 938,843 1,570,828 2,690,070 4,776,719 all U.S. centers (4)

Mall tenant sales -U.S. comparable 836,342 1,376,324 2,366,916 4,263,932 centers (3)(4)

12-Months Trailing

Operating Statistics: 2020 2019

Mall tenant sales - 4,828,525 6,741,322 all U.S. centers (4)

Mall tenant sales -U.S. comparable 4,233,859 6,063,124 centers (3)(4)

Sales per square foot- U.S. comparable 790 980 centers (3)(4)

All U.S. centers (4):

Mall tenant occupancycosts as a percentageof tenant sales - 19.0 % 13.2 %U.S. ConsolidatedBusinesses

Mall tenant occupancycosts as a percentage 15.6 % 11.7 %of tenant sales -U.S. UJVs

Mall tenant occupancycosts as a percentage 17.3 % 12.5 %of tenant sales -Combined U.S. centers

U.S. comparable centers (3)(4):

Mall tenant occupancycosts as a percentageof tenant sales - 18.4 % 12.8 %U.S. ConsolidatedBusinesses

Mall tenant occupancycosts as a percentage 15.4 % 11.5 %of tenant sales -U.S. UJVs

Mall tenant occupancycosts as a percentage 17.0 % 12.2 %of tenant sales -Combined U.S. centers

(1) See 'Use of Non-GAAP Financial Measures' for the definition and use ofEBITDA, NOI, and FFO.

(2) Statistics exclude non-comparable centers as defined in the respectiveperiods and have not been subsequently restated for changes in the pools ofcomparable centers.

(3) Statistics exclude non-comparable centers for all periods presented. TheSeptember 30, 2019 statistics have been restated to include comparable centersto 2020.

(4) Based on reports of sales furnished by mall tenants. Sales per square footexclude 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 2 -Income Statement

For the ThreeMonths Ended September 30,2020 and 2019

(in thousands of dollars)

2020 2019

CONSOLIDATED UNCONSOLIDATED CONSOLIDATED UNCONSOLIDATED

BUSINESSES JOINT VENTURES BUSINESSES JOINT VENTURES (1) (1)

REVENUES:

Rental revenues 122,817 125,744 141,213 138,960

Overage rents 540 3,219 3,865 6,736

Management,leasing, and 440 1,927 developmentservices

Other 7,201 4,334 15,501 7,413

Total revenues 130,998 133,297 162,506 153,109



EXPENSES:

Maintenance,taxes, 37,053 44,558 40,786 45,274 utilities, andpromotion

Other operating 13,289 5,147 19,753 6,412

Management,leasing, and 435 1,895 developmentservices

General and 7,048 9,632 administrative

Restructuring 2,395 876 charges

Simon PropertyGroup, Inc. 17,060 transactioncosts

Impairment 39,668 charge

Costsassociated with 675 shareholderactivism

Interest 33,052 34,927 37,695 35,398 expense

Depreciationand 49,235 34,983 47,849 33,865 amortization

Total expenses 159,567 159,283 159,161 120,949



Nonoperating 1,694 11,804 11,108 5,657 income, net

(26,875 ) (14,182 ) 14,453 37,817

Income tax (37 ) (3,425 ) (2,021 ) (2,266 )expense

Equity inincome (loss) (9,736 ) 20,252 of UJVs

Gains onpartialdispositions ofownership 138,696 interests inUJVs, net oftax

Gains onremeasurementsof ownership 145,010 interests inUJVs

Net income (36,648 ) (17,607 ) 316,390 35,551 (loss)

Net income/lossattributable to noncontrollinginterests:

Noncontrollingshare of income(loss) of 308 (958 ) consolidatedjoint ventures

Noncontrollingshare of 12,052 (93,690 ) (income) lossof TRG

Distributionstoparticipating (597 ) securities ofTRG

Preferred stock (5,784 ) (5,784 ) dividends

Net income(loss)attributable toTaubman (30,072 ) 215,361 Centers, Inc.commonshareholders



SUPPLEMENTAL INFORMATION:

EBITDA - 100% 55,412 55,728 383,703 107,080

EBITDA -outside (4,404 ) (32,180 ) (5,623 ) (50,377 )partners' share

Beneficialinterest in 51,008 23,548 378,080 56,703 EBITDA

Gain ontransfer of (5,600 ) (10,095 ) building andimprovements

Beneficialshare of 19,834 impairmentcharge

Gains onpartialdispositions of (138,696 ) ownershipinterests inUJVs

Gains onremeasurementsof ownership (145,010 ) interests inUJVs

Beneficialinterest (30,319 ) (16,127 ) (34,851 ) (17,798 )expense

Beneficialincome tax (37 ) (933 ) (2,021 ) (991 )expense - TRGand TCO

Beneficialincome tax 11 expense - TCO

Non-real estate (1,143 ) (1,150 ) depreciation

Preferreddividends and (5,784 ) (5,784 ) distributions

Funds fromOperationsattributable topartnership 13,736 20,722 40,473 37,914 unitholders andparticipatingsecurities ofTRG



STRAIGHTLINE ANDPURCHASE ACCOUNTINGADJUSTMENTS:

Netstraight-lineadjustments torental 441 (1,543 ) 1,712 (422 )revenues,recoveries, andground rentexpense at TRG%

The Mall atGreen Hillspurchase 24 13 accountingadjustments -rental revenues

Country ClubPlaza purchaseaccounting 235 61 adjustments -rental revenuesat TRG%

The GardensMall purchaseaccounting (377 ) (639 )adjustments -rental revenuesat TRG%

The GardensMall purchaseaccounting (528 ) (528 )adjustments -interestexpense at TRG%



(1) With the exception of the Supplemental Information, amounts include 100% ofthe UJVs. Amounts are net of intercompany transactions. The UJVs are presentedat 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.

Table 3 -Income Statement

For the NineMonths Ended September 30,2020 and 2019

(in thousands of dollars)

2020 2019

CONSOLIDATED UNCONSOLIDATED CONSOLIDATED UNCONSOLIDATED

BUSINESSES JOINT VENTURES BUSINESSES JOINT VENTURES (1) (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 1,830 4,035 developmentservices

Other 23,963 17,697 39,056 20,779

Total revenues 408,992 400,944 484,318 449,671



EXPENSES:

Maintenance,taxes, 110,315 133,524 118,506 132,413 utilities, andpromotion

Other operating 44,223 18,448 60,210 18,786

Management,leasing, and 1,587 2,917 developmentservices

General and 22,587 26,762 administrative

Restructuring 2,757 1,585 charges

Simon PropertyGroup, Inc. 32,505 transactioncosts

Impairment 39,668 charge

Costsassociated with 16,675 shareholderactivism

Interest 101,254 104,101 112,590 103,581 expense

Depreciationand 162,769 102,846 137,064 103,177 amortization

Total expenses 477,997 398,587 476,309 357,957



Nonoperating 1,332 12,628 26,468 6,981 income, net

(67,673 ) 14,985 34,477 98,695

Income tax (545 ) (6,653 ) (4,924 ) (6,635 )expense

Equity in 836 49,746 income of UJVs

Gains onpartialdispositions ofownership 11,277 138,696 interests inUJVs, net oftax

Gains onremeasurementsof ownership 14,146 145,010 interests inUJVs

Net income (41,959 ) 8,332 363,005 92,060 (loss)

Net income/lossattributable to noncontrollinginterests:

Noncontrollingshare of income (1,015 ) (3,219 ) of consolidatedjoint ventures

Noncontrollingshare of 16,653 (103,899 ) (income) lossof TRG

Distributionstoparticipating (595 ) (1,817 ) securities ofTRG

Preferred stock (17,353 ) (17,353 ) dividends

Net income(loss)attributable toTaubman (44,269 ) 236,717 Centers, Inc.commonshareholders



SUPPLEMENTAL INFORMATION:

EBITDA - 100% 223,255 221,932 567,837 305,453

EBITDA -outside (15,126 ) (122,990 ) (18,475 ) (146,640 )partners' share

Beneficialinterest in 208,129 98,942 549,362 158,813 EBITDA

Gain oninsurancerecoveries - (1,418 ) The Mall of SanJuan

Gain ontransfer of (5,600 ) (10,095 ) building andimprovements

Beneficialshare of 19,834 impairmentcharge

Gains onpartialdispositions of (12,759 ) (138,696 ) ownershipinterests inUJVs

Gains onremeasurementsof ownership (14,146 ) (145,010 ) interests inUJVs

Beneficialinterest (92,977 ) (48,487 ) (103,692 ) (52,579 )expense

Beneficialincome tax (545 ) (1,362 ) (4,735 ) (2,680 )expense - TRGand TCO

Beneficialincome tax 30 expense - TCO

Non-real estate (3,327 ) (3,447 ) depreciation

Preferreddividends and (17,353 ) (17,353 ) distributions

Funds fromOperationsattributable topartnership 67,052 63,327 124,916 103,554 unitholders andparticipatingsecurities ofTRG



STRAIGHTLINE ANDPURCHASE ACCOUNTINGADJUSTMENTS:

Netstraight-lineadjustments torental (2,487 ) (2,097 ) 4,427 181 revenues,recoveries, andground rentexpense at TRG%

The Mall atGreen Hillspurchase 43 61 accountingadjustments -rental revenues

Country ClubPlaza purchaseaccounting 346 257 adjustments -rental revenuesat TRG%

The GardensMall purchaseaccounting (1,018 ) (816 )adjustments -rental revenuesat TRG%

The GardensMall purchaseaccounting (1,584 ) (1,056 )adjustments -interestexpense at TRG%



(1) With the exception of the Supplemental Information, amounts include 100% ofthe UJVs. Amounts are net of intercompany transactions. The UJVs are presentedat 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:

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 Year to Three Year to Months Date Months Date Ended Ended

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 partialdispositions of ownership ? ? ?interests in UJVs

Gains on remeasurementsof ownership interests in ? ? ?UJVs

Gain on insurancerecoveries - 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 FromOperations

For the Three MonthsEnded September 30, 2020 and 2019

(in thousands of dollars except as noted;may not add or recalculate due to rounding)

2020 2019

Shares Per Shares Per Share Share

Dollars /Units /Unit Dollars /Units /Unit

Net income(loss)attributable (30,072 ) 61,696,565 (0.49 ) 215,361 61,211,249 3.52 to TCO commonshareholders -basic

Adddistributionsto 597 871,262 participatingsecurities ofTRG

Add impact ofshare-based 915 162,903 compensation

Net income(loss)attributable (30,072 ) 61,696,565 (0.49 ) 216,873 62,245,414 3.48 to TCO commonshareholders -diluted

Add TCO'sadditional 11 - income taxexpense

Adddepreciationof TCO's 1,482 0.02 1,617 0.03 additionalbasis

Net income(loss)attributableto TCO commonshareholders,excluding (28,579 ) 61,696,565 (0.46 ) 218,490 62,245,414 3.51 step-updepreciationand additionalincome taxexpense

Addnoncontrollingshare of (12,052 ) 26,306,431 93,690 26,430,716 income (loss)of TRG

Adddistributionsto 871,262 participatingsecurities ofTRG

Net income(loss)attributableto partnershipunitholders (40,631 ) 88,874,258 (0.46 ) 312,180 88,676,130 3.52 andparticipatingsecurities ofTRG

Add (less)depreciation andamortization:

Consolidatedbusinesses at 49,235 0.55 47,849 0.54 100%

Depreciationof TCO's (1,482 ) (0.02 ) (1,617 ) (0.02 )additionalbasis

Noncontrollingpartners in (1,979 ) (0.02 ) (1,821 ) (0.02 )consolidatedjoint ventures

Share of UJVs 16,224 0.18 17,662 0.20

Non-realestate (1,143 ) (0.01 ) (1,150 ) (0.01 )depreciation

Less gain ontransfer of (5,600 ) (0.06 ) (10,095 ) (0.11 )building andimprovements

Add beneficialshare of 19,834 0.22 impairmentcharge

Less gain onpartialdisposition of (138,696 ) (1.56 )ownershipinterest inUJV

Less gain onremeasurementof ownership (145,010 ) (1.64 )interest inUJV

Less impact ofshare-based (915 ) (0.01 )compensation

Funds fromOperationsattributableto partnershipunitholders 34,458 88,874,258 0.39 78,387 88,676,130 0.88 andparticipatingsecurities ofTRG

TCO's averageownershippercentage of 70.3 % 69.8 % TRG - basic^(1)

Funds fromOperationsattributableto TCO'scommon 24,237 0.39 54,747 0.88 shareholders,excludingadditionalincome taxexpense

Less TCO'sadditional (11 ) - income taxexpense

Funds fromOperationsattributableto TCO's 24,226 0.39 54,747 0.88 commonshareholders ^(1)



Funds fromOperationsattributableto partnershipunitholders 34,458 88,874,258 0.39 78,387 88,676,130 0.88 andparticipatingsecurities ofTRG

Simon PropertyGroup, Inc. 17,060 0.19 transactioncosts

Costsassociatedwith 675 0.01 shareholderactivism

Restructuring 2,395 0.03 876 0.01 charges

Promote fee,net of tax - 329 - (3,961 ) (0.04 )StarfieldHanam ^(2)

Fluctuation infair value of (602 ) (0.01 ) equitysecurities

Adjusted FundsfromOperationsattributableto partnership 53,640 88,874,258 0.60 75,977 88,676,130 0.86 unitholdersandparticipatingsecurities ofTRG

TCO's averageownershippercentage of 70.3 % 69.8 % TRG - basic ^(3)

Adjusted FundsfromOperationsattributableto TCO'scommon 37,730 0.60 53,064 0.86 shareholders,excludingadditionalincome taxexpense

Less TCO'sadditional (11 ) - income taxexpense

Adjusted FundsfromOperationsattributable 37,719 0.60 53,064 0.86 to TCO'scommonshareholders ^(3)



(1) For the three months ended September 30, 2020, Funds from Operationsattributable to TCO's common shareholders was $23,910 using TCO's dilutedaverage ownership percentage of TRG of 69.4%. For the three months endedSeptember 30, 2019, Funds from Operations attributable to TCO's commonshareholders was $54,109 using TCO's diluted average ownership percentage ofTRG of 69.0%.

(2) For the nine months ended September 30, 2020, includes a reduction of $0.3million 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 promotefee 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 TaxExpense, respectively, in our Statement of Operations and Comprehensive Income(Loss).

(3) For the three months ended September 30, 2020, Adjusted Funds fromOperations attributable to TCO's common shareholders was $37,226 using TCO'sdiluted average ownership percentage of TRG of 69.4%. For the three monthsended September 30, 2019, Adjusted Funds from Operations attributable to TCO'scommon shareholders was $52,445 using TCO's diluted average ownershippercentage 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 5 - Reconciliation of Net Income (Loss) Attributable to Taubman Centers,Inc. Common Shareholders to Funds from Operations and Adjusted Funds fromOperations

For the Nine Months Ended September 30, 2020 and 2019

(in thousandsof dollarsexcept asnoted; may not 2020 2019add orrecalculatedue torounding)

Shares Per Shares Per Share Share

Dollars /Units /Unit Dollars /Units /Unit

Net income(loss)attributable (44,269 ) 61,512,816 (0.72 ) 236,717 61,169,279 3.87 to TCO commonshareholders -basic

Adddistributionsto 1,817 871,262 participatingsecurities ofTRG

Add impact ofshare-based 689 191,955 compensation

Net income(loss)attributable (44,269 ) 61,512,816 (0.72 ) 239,223 62,232,496 3.84 to TCO commonshareholders -diluted

Add TCO'sadditional 30 - income taxexpense

Adddepreciationof TCO's 4,444 0.07 4,851 0.08 additionalbasis

Net income(loss)attributableto TCO commonshareholders,excluding (39,795 ) 61,512,816 (0.65 ) 244,074 62,232,496 3.92 step-updepreciationand additionalincome taxexpense

Addnoncontrollingshare of (16,653 ) 26,423,134 103,899 25,928,316 income (loss)of TRG

Adddistributionsto 595 871,262 participatingsecurities ofTRG

Net income(loss)attributableto partnershipunitholders (55,853 ) 88,807,212 (0.63 ) 347,973 88,160,812 3.95 andparticipatingsecurities ofTRG

Add (less)depreciation andamortization:

Consolidatedbusinesses at 162,769 1.83 137,064 1.55 100%

Depreciationof TCO's (4,444 ) (0.05 ) (4,851 ) (0.06 )additionalbasis

Noncontrollingpartners in (5,834 ) (0.07 ) (6,169 ) (0.07 )consolidatedjoint ventures

Share of UJVs 48,257 0.54 53,808 0.61

Non-realestate (3,327 ) (0.03 ) (3,447 ) (0.04 )depreciation

Less gain oninsurancerecoveries - (1,418 ) (0.02 )The Mall ofSan Juan

Less gain ontransfer of (5,600 ) (0.06 ) (10,095 ) (0.11 )building andimprovements

Add beneficialshare of 19,834 0.22 impairmentcharge

Less gains onpartialdispositionsof ownership (11,277 ) (0.13 ) (138,696 ) (1.57 )interests inUJVs, net oftax

Less gains onremeasurementsof ownership (14,146 ) (0.16 ) (145,010 ) (1.64 )interests inUJVs

Less impact ofshare-based (689 ) (0.01 )compensation

Funds fromOperationsattributableto partnershipunitholders 130,379 88,807,212 1.47 228,470 88,160,812 2.59 andparticipatingsecurities ofTRG

TCO's averageownershippercentage of 70.1 % 70.2 % TRG - basic ^(1)

Funds fromOperationsattributableto TCO'scommon 91,346 1.47 160,544 2.59 shareholders,excludingadditionalincome taxexpense

Less TCO'sadditional (30 ) - income taxexpense

Funds fromOperationsattributableto TCO's 91,316 1.47 160,544 2.59 commonshareholders ^(1)



Funds fromOperationsattributableto partnershipunitholders 130,379 88,807,212 1.47 228,470 88,160,812 2.59 andparticipatingsecurities ofTRG

Simon PropertyGroup, Inc. 32,505 0.37 transactioncosts

Costsassociatedwith 16,675 0.19 shareholderactivism

Restructuring 2,757 0.03 1,585 0.02 charges

Costs relatedto Blackstone 1,113 0.01 2,066 0.02 transactions ^(2)

Taubman AsiaPresident 244 - transitioncosts

Promote fee,net of tax - 611 0.01 (3,961 ) (0.04 )StarfieldHanam ^(3)

Fluctuation infair value of 933 0.01 (3,346 ) (0.04 )equitysecurities

Adjusted FundsfromOperationsattributableto partnership 168,542 88,807,212 1.90 241,489 88,160,812 2.74 unitholdersandparticipatingsecurities ofTRG

TCO's averageownershippercentage of 70.1 % 70.2 % TRG - basic ^(4)

Adjusted FundsfromOperationsattributableto TCO'scommon 118,138 1.90 169,648 2.74 shareholders,excludingadditionalincome taxexpense

Less TCO'sadditional (30 ) - income taxexpense

Adjusted FundsfromOperationsattributable 118,108 1.90 169,648 2.74 to TCO'scommonshareholders ^(1)



(1) For the nine months ended September 30, 2020, Funds from Operationsattributable to TCO's common shareholders was $90,175 using TCO's dilutedaverage ownership percentage of TRG of 69.3%. For the nine months endedSeptember 30, 2019, Funds from Operations attributable to TCO's commonshareholders was $158,583 using TCO's diluted average ownership percentage ofTRG of 69.4%.

(2) For the nine months ended September 30, 2020, includes $1.1 million ofdeferred income tax expense related to the Blackstone transactions, which hasbeen recorded within Income Tax Expense in our Statement of Operations andComprehensive Income (Loss). For the nine months ended September 30, 2019,includes $0.5 million of disposition costs and $1.6 million of deferred incometax expense related to the Blackstone transactions, which have been recordedwithin Nonoperating Income (Expense) and Income Tax Expense, respectively, inour Statement of Operations and Comprehensive Income (Loss).

(3) For the nine months ended September 30, 2020, includes a reduction of $0.6million of promote fee income related to the previously recognized promote fee,net of tax, for Starfield Hanam, which have been recorded within Equity inIncome (Loss) of UJVs in our Statement of Operations and Comprehensive Income(Loss). For the nine months ended September 30, 2019, includes $4.8 million ofpromote fee income related to Starfield Hanam less $0.9 million of income taxexpense, which have been recorded within Equity in Income (Loss) of UJVs andIncome Tax Expense, respectively, in our Statement of Operations andComprehensive Income (Loss).

(4) For the nine months ended September 30, 2020, Adjusted Funds fromOperations attributable to TCO's common shareholders was $116,628 using TCO'sdiluted average ownership percentage of TRG of 69.3%. For the nine months endedSeptember 30, 2019, Adjusted Funds from Operations attributable to TCO's commonshareholders was $167,578 using TCO's diluted average ownership percentage ofTRG 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 6 - Reconciliation of Net Income (Loss) to Beneficial Interest in EBITDAand Adjusted Beneficial Interest in EBITDA

For the Periods Ended September 30, 2020 and 2019

(in thousands of dollars; amountsattributable 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 (1,979 ) (1,821 ) (5,834 ) (6,169 )consolidated joint ventures

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 (2,733 ) (2,844 ) (8,277 ) (8,898 )consolidated joint ventures

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 (189 )consolidated joint ventures

Share of UJVs 933 991 1,362 2,680

Share of income tax expense ondispositions of ownership 1,482 interests



Less noncontrolling share of(income) loss of consolidated 308 (958 ) (1,015 ) (3,219 )joint ventures



Beneficial interest in EBITDA 74,556 434,783 307,071 708,175



TCO's average ownership 70.3 % 69.8 % 70.1 % 70.2 %percentage of TRG - basic



Beneficial interest in EBITDA 52,472 303,663 215,257 496,283 attributable to TCO



Beneficial interest in EBITDA 74,556 434,783 307,071 708,175



Add (less):

Simon Property Group, Inc. 17,060 32,505 transaction costs

Costs associated with 675 16,675 shareholder activism

Restructuring charges 2,395 876 2,757 1,585

Disposition costs related to 487 Blackstone transactions

Taubman Asia President 244 transition costs

Promote fee - Starfield Hanam 329 (4,820 ) 638 (4,820 )

Fluctuation in fair value of (602 ) 933 (3,346 )equity securities

Gains on partial dispositions (138,696 ) (12,759 ) (138,696 )of ownership interests in UJVs

Gains on remeasurements of (145,010 ) (14,146 ) (145,010 )ownership interests in UJVs

Gain on insurance recoveries - (1,418 )The Mall of San Juan

Gain on transfer of building (5,600 ) (10,095 ) (5,600 ) (10,095 )and improvements

Beneficial share of impairment 19,834 19,834 charge



Adjusted Beneficial interest in 107,972 137,713 331,477 423,537 EBITDA



TCO's average ownership 70.3 % 69.8 % 70.1 % 70.2 %percentage of TRG - basic



Adjusted Beneficial interest in 75,846 96,182 232,365 297,496 EBITDA attributable to TCO

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 7 -Reconciliationof Net Income (Loss) to NetOperatingIncome (NOI)

For thePeriods EndedSeptember 30, 2020, 2019,and 2018

(in thousands Three Months Ended Three Months Endedof dollars)

2020 2019 Growth 2019 2018 Growth % %

Net income (36,648 ) 316,390 316,390 38,115 (loss)

Add (less)depreciation andamortization:

Consolidatedbusinesses at 49,235 47,849 47,849 46,307 100%

Noncontrollingpartners in (1,979 ) (1,821 ) (1,821 ) (1,911 ) consolidatedjoint ventures

Share of UJVs 16,224 17,662 17,662 17,190

Add (less)interestexpense and income taxexpense:

Interest expense:

Consolidatedbusinesses at 33,052 37,695 37,695 33,396 100%

Noncontrollingpartners in (2,733 ) (2,844 ) (2,844 ) (2,984 ) consolidatedjoint ventures

Share of UJVs 16,127 17,798 17,798 17,093

Income tax expense:

Consolidatedbusinesses at 37 2,021 2,021 (996 ) 100%

Noncontrollingpartners in (51 ) consolidatedjoint ventures

Share of UJVs 933 991 991 1,023

Lessnoncontrollingshare of loss 308 (958 ) (958 ) (1,564 ) (income) ofconsolidatedjoint ventures

Add EBITDAattributable to outsidepartners:

EBITDAattributabletononcontrolling 4,404 5,623 5,623 6,510 partners inconsolidatedjoint ventures

EBITDAattributableto outside 32,180 50,377 50,377 48,438 partners inUJVs

EBITDA at 100% 111,140 490,783 490,783 200,566

Add (less)items excluded from shoppingcenter NOI:

General andadministrative 7,048 9,632 9,632 8,530 expenses

Management,leasing, and (5 ) (32 ) (32 ) (384 ) developmentservices, net

Simon PropertyGroup, Inc. 17,060 transactioncosts

Restructuring 2,395 876 876 charges

Costsassociatedwith 675 675 1,500 shareholderactivism

Straight-line 1,661 (809 ) (809 ) (2,292 ) of rents

Nonoperating (13,498 ) (16,765 ) (16,765 ) (9,263 ) income, net

Gain onpartialdisposition of (138,696 ) (138,696 ) ownershipinterest inUJV

Gain onremeasurementof ownership (145,010 ) (145,010 ) interest inUJV

Impairment 39,668 charge

Unallocatedoperating 3,850 6,749 6,749 8,131 expenses andother

NOI at 100% -total 169,319 207,403 207,403 206,788 portfolio

Less - NOI of ^ ^ ^ ^non-comparable (14,677 ) (1) (21,295 ) (1) (18,731 ) (2) (13,187 ) (3) centers

NOI at 100% - (16.9)comparable 154,642 186,108 % 188,672 193,601 (2.5)%centers

Foreigncurrencyexchange rate (77 ) fluctuationadjustment

NOI at 100% -comparablecentersincluding (16.9)lease 154,565 186,108 % cancellationincome atconstantcurrency



NOI at 100% -comparable 154,642 186,108 188,672 193,601 centers

Less leasecancellationincome - (19,843 ) (1,045 ) (1,045 ) (3,041 ) comparablecenters

NOI at 100% -comparablecenters (27.2)excluding 134,799 185,063 % 187,627 190,560 (1.5)%leasecancellationincome

Foreigncurrencyexchange rate (77 ) 1,202 fluctuationadjustment

NOI at 100% -comparablecentersexcluding (27.2)lease 134,722 185,063 % 188,829 190,560 (0.9)%cancellationincome atconstantcurrency



NOI at 100% -comparable 154,642 186,108 centers

Less NOI ofcomparablecentersattributabletononcontrolling (48,832 ) (56,577 ) partners inconsolidatedjoint venturesand outsidepartners inUJVs

Beneficialinterest inNOI -comparable (18.3)centers 105,810 129,531 % includingleasecancellationincome

Beneficialinterest inforeigncurrency (15 ) exchange ratefluctuationadjustment

Beneficialinterest inNOI -comparablecenters (18.3)including 105,795 129,531 % leasecancellationincome atconstantcurrency



NOI at 100% -comparablecentersexcluding 134,799 185,063 leasecancellationincome

Less NOI ofcomparablecentersexcludingleasecancellationincomeattributable (43,401 ) (56,271 ) tononcontrollingpartners inconsolidatedjoint venturesand outsidepartners inUJVs

Beneficialinterest inNOI -comparable (29.0)centers 91,398 128,792 % excludingleasecancellationincome

Beneficialinterest inforeigncurrency (15 ) exchange ratefluctuationadjustment

Beneficialinterest inNOI -comparablecenters (29.0)excluding 91,383 128,792 % leasecancellationincome atconstantcurrency



NOI at 100% -total 169,319 207,403 207,403 206,788 portfolio

Less leasecancellation (25,953 ) (2,407 ) (2,407 ) (3,822 ) income - totalportfolio

Less NOIattributabletononcontrollingpartners inconsolidatedjoint ventures (45,202 ) (56,393 ) (56,393 ) (55,345 ) and outsidepartners inUJVs excludingleasecancellationincome - totalportfolio

Beneficialinterest inNOI - totalportfolio 98,164 148,603 (33.9) 148,603 147,621 0.7%excluding %leasecancellationincome



(1) Includes Beverly Center, The Gardens Mall, The Mall of San Juan, StamfordTown Center, and Taubman Prestige Outlets Chesterfield.

(2) Includes Beverly Center, The Gardens Mall, The Mall of San Juan, andTaubman Prestige Outlets Chesterfield.

(3) Includes Beverly Center, The Mall of San Juan, and Taubman Prestige OutletsChesterfield.

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 8 -Reconciliationof Net Income (Loss) to NetOperatingIncome (NOI)

For thePeriods EndedSeptember 30, 2020, 2019,and 2018

(in thousands Year to Date Year to Dateof dollars)

2020 2019 Growth 2019 2018 Growth % %

Net income (41,959 ) 363,005 363,005 102,804 (loss)

Add (less)depreciation andamortization:

Consolidatedbusinesses at 162,769 137,064 137,064 124,325 100%

Noncontrollingpartners in (5,834 ) (6,169 ) (6,169 ) (5,480 ) consolidatedjoint ventures

Share of UJVs 48,257 53,808 53,808 51,570

Add (less)interestexpense and income taxexpense:

Interest expense:

Consolidatedbusinesses at 101,254 112,590 112,590 97,242 100%

Noncontrollingpartners in (8,277 ) (8,898 ) (8,898 ) (9,023 ) consolidatedjoint ventures

Share of UJVs 48,487 52,579 52,579 51,107

Income tax expense:

Consolidatedbusinesses at 545 4,924 4,924 (784 ) 100%

Noncontrollingpartners in (189 ) (189 ) (134 ) consolidatedjoint ventures

Share of UJVs 1,362 2,680 2,680 2,387

Share ofincome taxexpense on 1,482 disposition ofownershipinterests

Lessnoncontrollingshare of (1,015 ) (3,219 ) (3,219 ) (4,388 ) income ofconsolidatedjoint ventures

Add EBITDAattributable to outsidepartners:

EBITDAattributabletononcontrolling 15,126 18,475 18,475 19,025 partners inconsolidatedjoint ventures

EBITDAattributableto outside 122,990 146,640 146,640 145,671 partners inUJVs

EBITDA at 100% 445,187 873,290 873,290 574,322

Add (less)items excluded from shoppingcenter NOI:

General andadministrative 22,587 26,762 26,762 25,545 expenses

Management,leasing, and (243 ) (1,118 ) (1,118 ) (1,294 ) developmentservices, net

Simon PropertyGroup, Inc. 32,505 transactioncosts

Restructuring 2,757 1,585 1,585 (423 ) charges

Costsassociatedwith 16,675 16,675 10,000 shareholderactivism

Straight-line 4,729 (5,993 ) (5,993 ) (9,706 ) of rents

Nonoperating (13,960 ) (33,449 ) (33,449 ) (15,349 ) income, net

Gains onpartialdispositions (12,759 ) (138,696 ) (138,696 ) of ownershipinterests inUJVs

Gains onremeasurementsof ownership (14,146 ) (145,010 ) (145,010 ) interests inUJVs

Impairment 39,668 charge

Unallocatedoperating 13,826 22,871 22,871 24,654 expenses andother

NOI at 100% -total 520,151 616,917 616,917 607,749 portfolio

Less - NOI of ^ ^ ^ ^non-comparable (41,434 ) (1) (57,636 ) (1) (48,662 ) (2) (32,015 ) (3) centers

NOI at 100% - (14.4)comparable 478,717 559,281 % 568,255 575,734 (1.3)%centers

Foreigncurrencyexchange rate 2,075 fluctuationadjustment

NOI at 100% -comparablecentersincluding (14.0)lease 480,792 559,281 % cancellationincome atconstantcurrency



NOI at 100% -comparable 478,717 559,281 568,255 575,734 centers

Less leasecancellationincome - (26,938 ) (6,488 ) (7,480 ) (16,785 ) comparablecenters

NOI at 100% -comparablecenters (18.3)excluding 451,779 552,793 % 560,775 558,949 0.3%leasecancellationincome

Foreigncurrencyexchange rate 2,075 4,572 fluctuationadjustment

NOI at 100% -comparablecentersexcluding (17.9)lease 453,854 552,793 % 565,347 558,949 1.1%cancellationincome atconstantcurrency



NOI at 100% -comparable 478,717 559,281 centers

Less NOI ofcomparablecentersattributabletononcontrolling (145,357 ) (169,181 ) partners inconsolidatedjoint venturesand outsidepartners inUJVs

Beneficialinterest inNOI -comparable (14.5)centers 333,360 390,100 % includingleasecancellationincome

Beneficialinterest inforeigncurrency 436 exchange ratefluctuationadjustment

Beneficialinterest inNOI -comparablecenters (14.4)including 333,796 390,100 % leasecancellationincome atconstantcurrency



NOI at 100% -comparablecenters ^ ^excluding 451,779 (1) 552,793 (1) leasecancellationincome

Less NOI ofcomparablecentersexcludingleasecancellationincomeattributable (138,580 ) (167,770 ) tononcontrollingpartners inconsolidatedjoint venturesand outsidepartners inUJVs

Beneficialinterest inNOI -comparable (18.7)centers 313,199 385,023 % excludingleasecancellationincome

Beneficialinterest inforeigncurrency 436 exchange ratefluctuationadjustment

Beneficialinterest inNOI -comparablecenters (18.5)excluding 313,635 385,023 % leasecancellationincome atconstantcurrency



NOI at 100% -total 520,151 616,917 616,917 607,749 portfolio

Less leasecancellation (33,695 ) (10,407 ) (10,407 ) (19,667 ) income - totalportfolio

Less NOIattributabletononcontrollingpartners inconsolidatedjoint ventures (145,973 ) (165,307 ) (165,307 ) (162,184 ) and outsidepartners inUJVs excludingleasecancellationincome - totalportfolio

Beneficialinterest inNOI - totalportfolio 340,483 441,203 (22.8) 441,203 425,898 3.6%excluding %leasecancellationincome



(1) Includes Beverly Center, The Gardens Mall, The Mall of San Juan, StamfordTown Center, and Taubman Prestige Outlets Chesterfield.

(2) Includes Beverly Center, The Gardens Mall, The Mall of San Juan, andTaubman Prestige Outlets Chesterfield.

(3) Includes Beverly Center, The Mall of San Juan, and Taubman Prestige OutletsChesterfield.

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

As of September 30, 2020

(in millions of dollars, amounts may not add due to rounding)

Ownership Amortizing Maturity 100% Beneficial Effective LIBOR % (A)/ Interest Rate Rate

Consolidated (if not Interest Date 9/30/2020 9/30/2020 (a) 9/30/2020 (b) Spread Fixed Rate Debt: 100%) Only (I)

Cherry Creek 50.00 % I 6/1/2028 550.0 275.0 3.85 % Shopping Center

City Creek A 8/1/2023 74.0 74.0 4.37 % Center

Great Lakes A 1/6/2023 189.6 189.6 3.60 % Crossing Outlets

The Mall at I 10/1/ 1,000.0 1,000.0 3.48 % Short Hills 2027

Twelve Oaks Mall A 3/6/2028 288.8 288.8 4.85 %

2,102.5 1,827.5

3.81 % 3.80 %

ConsolidatedFloating Rate Debt:

The Mall at I 12/1/ 150.0 150.0 1.61 % (c) 1.45% (c)Green Hills 2021

International 93.50 % I 8/9/2021 (d) 250.0 233.8 2.31 % 2.15% (d)Market Place

TRG $65M 4/24/Revolving Credit I 2021 0.0 (e) 0.0 1.55 % (e) 1.40% Facility

TRG $1.1B (f) (f)Revolving Credit I 2/1/2024 (f) 845.0 845.0 2.10 % (i) 1.60% (i)Facility

1,245.0 1,228.8

2.08 % 2.08 %

Consolidated Floating Rate Debt Swapped to Fixed:

TRG $275M Term I 2/1/2025 275.0 275.0 3.94 % (g) 1.80% (g)Loan (i)

TRG $250M Term I 3/31/ 250.0 250.0 4.92 % (h) 1.90% (h)Loan 2023 (i)

TRG $1.1B Revolving Credit I 2/1/2024 (f) 25.0 25.0 3.74 % (f) 1.60% (f)Facility (portion swapped) (i)

U.S. I 3/1/2024 12.0 12.0 3.49 % (j) Headquarters

562.0 562.0

4.35 % 4.35 %



Total ConsolidatedDeferred Financing Costs, (11.9 ) (11.5 ) Net



Total 3,897.5 3,606.7 Consolidated

Weighted Rate (excluding 3.34 % 3.30 % deferred financing costs)



Joint Ventures Fixed Rate Debt:

CityOn.Xi'an 25.00 % A 3/14/ 156.1 (k) 39.0 6.00 % 2029

CityOn.Zhengzhou 24.50 % A 3/22/ 76.9 (l) 18.8 5.60 % (l) 2032

Country Club 50.00 % A (m) 4/1/2026 312.9 156.5 3.85 % Plaza

Fair Oaks Mall 50.00 % A 5/10/ 251.8 125.9 5.32 % 2023

The Gardens Mall 48.50 % I - until (n) 7/15/ (n) 195.0 104.8 (n) 4.13 % (n) 8/15/2021 2025

International 50.10 % A 12/1/ 293.1 146.9 4.85 % Plaza 2021

The Mall at 50.00 % I 10/15/ 350.0 175.0 4.00 % Millenia 2024

The Mall at 50.00 % I 10/15/ 100.0 50.0 3.75 % Millenia 2024

Starfield 49.00 % I 2/28/ 239.7 (o) 117.5 2.16 % (o) Anseong 2025

Starfield Hanam 17.15 % I 11/25/ 266.6 (p) 45.7 2.58 % (p) 2020

Sunvalley 50.00 % A 9/1/2022 162.0 81.0 4.44 %

Taubman Land 50.00 % A 11/1/ 20.2 10.1 3.84 % Associates 2022

The Mall at I - until 11/1/University Town 50.00 % 12/1/2022 2026 280.0 140.0 3.40 % Center

Waterside Shops 50.00 % I (q) 4/15/ 165.0 82.5 3.86 % 2026

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 FloatingRate Debt Swapped to Fixed:

International 50.10 % A 12/1/ 155.8 78.1 3.58 % (r) Plaza 2021

155.8 78.1

3.58 % 3.58 %



Total Joint VentureDeferred Financing Costs, (7.0 ) (3.4 ) Net



Total Joint 3,288.4 1,581.6 Venture

Weighted Rate (excluding 4.03 % 4.07 % deferred financing costs)



TRG Beneficial Interest Totals:

Fixed Rate Debt 5,242.1 3,334.4

3.95 % 3.93 %

Floating Rate 1,245.0 1,228.8 Debt

2.08 % 2.08 %

Floating RateDebt Swapped to 717.8 640.1 Fixed

4.19 % 4.26 %



Total DeferredFinancing Costs, (19.0 ) (14.9 ) Net



Total 7,185.9 5,188.3

Weighted Rate (excluding 3.65 % 3.54 % deferred financing costs)



Weighted AverageMaturity Fixed 5.6 Debt

Weighted AverageMaturity Total 4.8 Debt

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 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

Floating Total Fixed Weighted Floating Weighted Swapped Weighted Deferred WeightedYear Rate Debt Rate Debt to Fixed Rate (t) Financing Total Debt (s) Rate Rate (t) Costs, Rate Net

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 San Juan, PR 95% Juan

Unconsolidated Joint Ventures:

Stamford Town Stamford, CT 50% (u) Center



(a) All debt is secured and non-recourse to TRG unless otherwise indicated.

Includes the impact of interest rate swaps that qualify for hedge accounting,(b) 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.

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(c) 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%.

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(d) 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.

Rate floats daily at LIBOR plus spread. Letters of credit totaling $9.8 million(e) 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.

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(f) 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.

The $275 million unsecured term loan bears interest at a range of LIBOR + 1.15%(g) 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.

The $250 million unsecured term loan bears interest at a range of LIBOR + 1.25%(h) 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%.

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(i) 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.

1.2 billion Renminbi (RMB) ($176.7 million USD equivalent at September 30,(k) 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.

1.2 billion RMB ($176.7 million USD equivalent at September 30, 2020)(l) 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.

In May 2020, Country Club Plaza entered into a forbearance agreement which(m) deferred principal amortization for the period June through August 2020. This deferred amortization will be repaid September through December 2020.

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(n) 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.

300 billion Korean Won (KRW) ($257.6 million USD equivalent at September 30, 2020) non-recourse construction facility which bears interest at the Korea(o) 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.

520 billion KRW ($446.4 million USD equivalent at September 30, 2020) non-recourse construction facility which bears interest at the KOFIA Five Year(p) 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.

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(q) 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.

Represents principal amortization of floating rate debt swapped to fixed rate(t) 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 10 - Owned Centers

As of September 30, 2020

Sq. Ft. of Year Year Ownership GLA/ Opened/

Center Anchors Mall GLA Expanded Acquired %

Consolidated Businesses:

Beverly Center Bloomingdale's, 846,000 1982 100% Macy's

Los Angeles, CA 522,000

Cherry Creek Macy's, Neiman 1,037,000 1990/ 50%Shopping Center Marcus, Nordstrom 1998/

Denver, CO 634,000 2015

City Creek Center Macy's, Nordstrom 623,000 2012 100%

Salt Lake City, 342,000 UT

Bass Pro Shops Outdoor World, 2001/Dolphin Mall Bloomingdale's 1,434,000 2007/ 100% Outlet, Burlington

Coat Factory, Cobb Theatres,Miami, FL Dave & Buster's, 707,000 2015 Marshalls, Polo Ralph

Lauren Factory Store, Saks Off 5th

The Gardens on El Saks Fifth Avenue 238,000 1998/ 2011 100%Paseo 2010

Palm Desert, CA 187,000

AMC Theatres,Great Lakes Bass Pro ShopsCrossing Outlets Outdoor World, 1,355,000 1998 100% Burlington Coat Factory,

Legoland,Auburn Hills, MI Nordstrom Rack, 533,000 Planet Fitness,

(Detroit Round 1 BowlingMetropolitan and Amusement, Area) Sea Life

The Mall at Green Dillard's, 998,000 (1) 1955/ 2011 100%Hills Macy's, Nordstrom 2011/

Nashville, TN 493,000 2019

International Saks Fifth Avenue 340,000 2016 93.5%Market Place

Waikiki, 261,000 Honolulu, HI

The Mall of San 627,000 (2) 2015 95%Juan

San Juan, PR 389,000

The Mall at Short Bloomingdale's, 1,344,000 1980/ 100%Hills Macy's, 1994/

Short Hills, NJ Neiman Marcus, 605,000 1995 / Nordstrom 2011

JCPenney, Lord & 1977/Twelve Oaks Mall Taylor (3), 1,520,000 (4) 1978/ 100% Macy's,

Novi, MI (Detroit 2007/Metropolitan Nordstrom 550,000 2008 Area)

Total GLA 10,362,000

Total Mall GLA 5,223,000

TRG % of Total 9,790,000 GLA

TRG % of Total 4,870,000 Mall GLA

Unconsolidated Joint Ventures:

CityOn.Xi'an Wangfujing 995,000 2016 25%

Xi'an, China 693,000

CityOn.Zhengzhou G-Super, 919,000 2017 24.5% Wangfujing

Zhengzhou, China 621,000

Country Club (5) 947,000 (6) 1922/ 2016 50%Plaza 1977/

Kansas City, MO 729,000 2000/ 2015

JCPenney, Lord &Fair Oaks Mall Taylor (3), 1,558,000 (7) 1980/ 50% Macy's (two 1987/ locations)

Fairfax, VA(Washington, DC 562,000 1988/ Metropolitan 2000Area)

Bloomingdale's, 1988 /The Gardens Mall Macy's, 1,385,000 2005 2019 48.5% Nordstrom,

Palm Beach Saks Fifth 450,000 Gardens, FL Avenue, Sears

Dillard's, LifeInternational Time Athletic, 1,252,000 2001/ 50.1%Plaza Neiman Marcus, 2015 Nordstrom

Tampa, FL 615,000

The Mall at Bloomingdale's,Millenia Macy's, Neiman 1,114,000 2002 50% Marcus

Orlando, FL 514,000

Stamford Town Macy's, Saks Off 761,000 1982/ 50%Center 5th 2007

Stamford, CT 438,000

PK Market,Starfield Hanam Shinsegae, 1,709,000 2016 17.15% Traders

Hanam, South 978,000 Korea

JCPenney, Macy's 1967/Sunvalley (two locations), 1,324,000 1981 2002 50% Sears

Concord, CA (SanFrancisco 485,000 MetropolitanArea)

The Mall at Dillard's,University Town Macy's, Saks 863,000 2014 50%Center Fifth Avenue

Sarasota, FL 441,000

Waterside Shops Saks Fifth Avenue 342,000 1992/ 2003 50% 2006/

Naples, FL 202,000 2008

JCPenney, Lord & Taylor (3), 1974/Westfarms Macy's (two 1,266,000 1983/ 79% locations), Nordstrom

West Hartford, CT 497,000 1997

Total GLA 14,435,000

Total Mall GLA 7,225,000

TRG % of Total 6,521,000 GLA

TRG % of Total 3,098,000 Mall GLA

Grand Total GLA 24,797,000

Grand Total Mall 12,448,000 GLA

TRG % of Total 16,311,000 GLA

TRG % of Total 7,968,000 Mall GLA



(1) GLA does not reflect the full total incremental GLA to be added inconnection with the redevelopment project at the center.

(2) GLA includes approximately 100,000 square feet of GLA related to the formerSaks Fifth Avenue space, which closed in September 2017 and terminated itslease in August 2019.

(3) GLA includes the former Saks Fifth Avenue store, which closed in September2016. A portion of this space opened as Mall GLA in 2018, while the remaining31,000 square feet of GLA of the space is currently under redevelopment ascoworking office space.

(4) GLA includes approximately 228,000 square feet of GLA related to the formerSears space, which closed in March 2019.

(5) In 2018, Nordstrom announced plans to relocate a store to the center. Thenew, 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 formerSears 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 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.

In August 2020, Lord & Taylor filed for bankruptcy and announced plans to(3) 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

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20201109006048/en/

CONTACT: Erik Wright, Taubman, Manager, Investor Relations, 248-258-7390 ewright@taubman.com

CONTACT: Maria Mainville, Taubman, Director, Strategic Communications, 248-258-7469 mmainville@taubman.com