* Q4 FFO loss of 55 cents/share
* Q4 FFO without impairment $1/share
* Sees full-year 2009 FFO $2.69 to $2.94/share
(Adds analysts' expectations, company forecast, sales per
square foot, CEO comment, stock activity)
NEW YORK, Feb 11 Taubman Centers Inc (TCO.N),
which builds and operates high-end malls, reported a loss in
quarterly funds from operations (FFO) on Wednesday, due to a
charge from a court battle to build a center in a New York
Taubman posted a fourth-quarter FFO loss of $43.4 million,
or 55 cents per share, versus positive FFO of $70.3 million, or
87 cents per share per share, in the year-earlier quarter.
The results included a $115.9 million charge after a New
York state appeals court reversed a favorable decision that had
ordered the town of Oyster Bay to issue a special use permit
for The Mall at Oyster Bay. The charge includes the costs of
court-related procedures and previous development.
The quarterly FFO, a performance measure for a real estate
investment trust, also includes an $8.3 million charge related
to a Taubman project in Sarasota, Florida, put on hold.
Excluding the charges, Taubman posted positive FFO of $1
per share, easily beating the average analyst estimate of 81
cents per share.
The luxury retail market has been pummeled as the recession
brought layoffs at banks and hedge funds. Sales at Taubman
centers fell 13.7 percent in the quarter to average $539 per
"After 22 consecutive quarters of sales increases, we
experienced a dramatic reversal that began in mid September and
occurred nearly across the board," Robert Taubman, the chairman
and chief executive, said in a statement.
Some luxury retailers have reduced demand for space at
malls. The company also experienced a high level of lease
cancellations during the quarter, Robert Taubman said in a
At the end of the quarter, occupancy rate fell to 90.3
percent from 91.2 percent a year earlier due to bankruptcies of
companies at three big-box stores in Taubman centers.
Taubman forecast full-year 2009 FFO in a range of $2.69 to
$2.94 a share, including a first-quarter charge of $2.6 million
from a workforce reduction. It also includes 3 cents a share
for ongoing expenditures on the Oyster Bay project and 10 cents
a share related to interest that will no longer be
Excluding the job cuts charge, Taubman expects 2009
adjusted FFO to be in the range of $2.72 to $2.97 per diluted
Taubman has one of the strongest balance sheets among
retail real estate investment trusts. It has no maturities
until fall 2010, when $264 million in loans, its share of three
property-specific loans, mature.
Taubman, which owns or manages 24 shopping centers, has
secured credit lines totaling $590 million that mature in 2011.
There is a one-year extension on $550 million of that sum. At
the end of 2008, Taubman had $350 million available on its
In after-hours activity, Taubman shares traded at $18.83,
unchanged from their close on the New York Stock Exchange.
(Reporting by Ilaina Jonas; editing by Jeffrey Benkoe)