2018 Q1 Supplementals1.q4cdn.com/799408505/files/doc_financials/supplemental/... · 2018-04-27 ·...

First Quarter 2018 Earnings Press Release & Supplemental Information

Q118 Supplemental

TABLE OF CONTENTS

PAGE

Earnings Press Release ER 1-4

OverviewCompany Information & Analyst Coverage 1Trading Information 2

Summary Financial Information & Operational Statistics 3-5

Summary of Key Guidance Measures 6

Income Statements (Updated 4-27-2018) 7

Changes in Funds from Operations and Earnings Per Common Share 8

Balance Sheet InformationBalance Sheets 9Debt Summary 10-11Capital Spending and Certain Balance Sheet Information 12

Property InformationOwned Centers 13Redevelopments 14Anchors & Major Tenants in Owned Portfolio 15

OtherComponents of Other Income, Other Operating Expense, and Nonoperating Income (Expense) 16Use of Non-GAAP Financial Measures and Reconciliations to GAAP Measures 17-20Glossary 21

This supplemental contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21Eof the Securities Exchange Act of 1934, as amended. These statements reflect management's current views with respect to future events and financialperformance. Forward-looking statements can be identified by words such as “will”, “may”, “could”, “expect”, “anticipate”, “believes”, “intends”, “should”,“plans”, “estimates”, “approximate”, “guidance” and similar expressions in this supplemental that predict or indicate future events and trends and thatdo not report historical matters. The forward-looking statements included in this supplemental are made as of the date hereof. Except as required by law,the Company assumes no obligation to update these forward-looking statements, even if new information becomes available in the future. Actual resultsmay differ materially from those expected because of various risks, uncertainties and other factors. Such factors include, but are not limited to: changesin market rental rates; unscheduled closings or bankruptcies of tenants; relationships with anchor tenants; trends in the retail industry; challenges withdepartment stores; changes in consumer shopping behavior; the liquidity of real estate investments; the Company’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 investmentsin foreign entities; 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 jointventure properties; insurance costs and coverage; security breaches that could impact the Company’s information technology, infrastructure or personaldata; costs associated with response to technology breaches; the loss of key management personnel; shareholder activism costs and related diversion ofmanagement time; terrorist activities; maintaining the Company’s status as a real estate investment trust; changes in the laws of states, localities, andforeign jurisdictions that may increase taxes on the Company’s operations; and changes in global, national, regional and/or local economic and geopoliticalclimates. You should review the Company's filings with the Securities and Exchange Commission, including “Risk Factors” in its most recent Annual Reporton Form 10-K and subsequent quarterly reports, for a discussion of such risks and uncertainties.

Q118 Supplemental

ER1

EARNINGS PRESS RELEASE

TAUBMAN CENTERS, INC. ISSUES STRONG FIRST QUARTER RESULTS

– Net Income Up 8.1 Percent– Comparable Center Net Operating Income (NOI), Including Lease Cancellation Income, Up 9.2 Percent– Comparable Center NOI, Excluding Lease Cancellation Income, Up 4.7 Percent– Adjusted Funds from Operations (Adjusted FFO) Per Share Up 13 Percent– Mall Tenant Sales Per Square Foot Up 12.4 Percent for the Quarter– Seventh Consecutive Quarter of Positive Sales Growth– Trailing-12 Month Mall Tenant Sales Per Square Foot $837, Up 5 Percent – Redevelopment Agreement for Taubman Prestige Outlets Chesterfield Signed– Quarterly Common Stock Dividend Increased 4.8 Percent to $0.655 Per Share

BLOOMFIELD HILLS, Mich., April 26, 2018 - - Taubman Centers, Inc. (NYSE: TCO) today reported financial results for the first quarter of2018.

“Our strong growth was primarily driven by higher rents and greater lease cancellation income. We also benefitted from lower generaland administrative expenses, a result of the cost saving initiatives we implemented last year,” said Robert S. Taubman, chairman, presidentand chief executive officer of Taubman Centers. “Adjusted FFO per share, up 13 percent, was largely in line with our expectations.”

Operating Statistics

For the quarter, total portfolio NOI was up 8.8 percent. Comparable center NOI, including lease cancellation income, was up 9.2 percent.Excluding lease cancellation income, comparable center NOI was up 4.7 percent.

“Our centers produced very healthy NOI growth this quarter,” said Mr. Taubman. “The results of our newest comparable centers -International Market Place in Hawaii, CityOn.Xi’an in China, and Starfield Hanam in South Korea - were especially strong.”

Comparable center mall tenant sales per square foot rose 12.4 percent from the first quarter of 2017.

“This was the best quarterly growth in our sales per square foot in six years. Nearly every center and every category of merchandise wasup,” said Mr. Taubman. “We were especially pleased to see double-digit growth in apparel, a category that hasn’t grown for several years.”

Trailing 12-month mall tenant sales per square foot increased 5 percent to $837 at March 31, 2018.

Average rent per square foot for the quarter was $57.73, up 3.9 percent from $55.54 in the comparable period last year.

March 31, 2018Three Months

Ended

March 31, 2017Three Months

Ended

Net income attributable to common shareowners, diluted (in thousands)Growth rate

$18,6188.1%

$17,215

Net income attributable to common shareowners (EPS) per diluted common shareGrowth rate

$0.307.1%

$0.28

Funds from Operations (FFO) per diluted common shareGrowth rate

$0.883.5%

$0.85

Adjusted Funds from Operations (Adjusted FFO) per diluted common shareGrowth rate

$1.04 (1)

13.0%$0.92 (2)

(1) Primary exclusions to Adjusted FFO for the three months ended March 31, 2018 were the fluctuation in the fair value of the SimonProperty Group (SPG) common shares investment (due to the implementation of new accounting related to investments in securities)and costs associated with shareowner activism.(2) Primary exclusions to Adjusted FFO for the three months ended March 31, 2017 were costs associated with shareowner activism anda restructuring charge.

Q118 Supplemental

ER2


The trailing 12-month releasing spread per square foot for the period ended March 31, 2018 was 4.4 percent. This spread continues to beimpacted by a small number of spaces that have an average lease term of less than two-and-a-half years. Without these leases, the spreadwas nearly 10 percent.

Ending occupancy in comparable centers was 92.8 percent on March 31, 2018, unchanged from March 31, 2017. Leased space in comparablecenters was 95 percent on March 31, 2018, up 0.2 percent from March 31, 2017.

“As retail continues its transition and recovery, notwithstanding elevated levels of tenant turnover during the last two years, we are pleasedour portfolio occupancy and leased space remain very strong,” said Mr. Taubman. “As retailers rationalize store counts, it is evident thatdominant properties, such as ours’, will outperform, gain market share, and enhance shareholder value.”

Financing Activity

In February, the company completed a $300 million, 10-year, non-recourse financing on Twelve Oaks Mall (Novi, Mich.). The loan has afixed rate of 4.85 percent. The asset was previously unencumbered.

In March, the company closed on a new five-year, $250 million, unsecured term loan. The loan bears interest at a range of LIBOR plus 1.25to 1.90 percent, based on the company’s total leverage ratio. The LIBOR rate is swapped to 1.64 percent through February 2019, resultingin a rate of 3.24 percent as of March 31.

Combined proceeds from these two loans were used to pay off the company’s $475 million term loan and to pay down the company’slines of credit.

Agreement for the Redevelopment of Taubman Prestige Outlets Chesterfield

During the quarter the company entered into a redevelopment agreement for Taubman Prestige Outlets Chesterfield (Chesterfield,Mo.). Under the terms of the agreement, The Staenberg Group (“TSG”) will lease the land subject to a long-term, participating groundlease, and the building and improvements on the property will be transferred to TSG. They are planning a significant redevelopment ofthe property. Taubman will receive ground lease payments and a share of the property’s revenues above a specified level. Taubman hasno future capital obligation related to the redevelopment of the property.

“This transaction will enable us to focus on our most strategic assets, where the greatest net asset value can be created,” said Mr. Taubman.

The agreement is subject to customary conditions and is expected to close on May 1. Management of the center will transition once thetransaction is complete. Taubman Prestige Outlets Chesterfield has been excluded from the company’s comparable center guidancemeasures and operating statistics.

Dividend Increased

In March, the company declared a regular quarterly dividend of $0.655 per share of common stock, an increase of 4.8 percent. Since thecompany went public in 1992 it has has increased its dividend 21 times, achieving a 4.5 percent compounded annual growth rate over theperiod. See Taubman Centers Increases Quarterly Common Dividend 4.8 Percent to $0.655 Per Share - March 2, 2018.

2018 Guidance

The company is updating certain guidance measures for 2018. 2018 EPS is now expected to be in the range of $0.99 to $1.23 per dilutedcommon share, revised from the previous range of $1.15 to $1.39.

2018 Adjusted FFO, which excludes $0.16 per diluted common share of first quarter adjustments, remains unchanged and is expected tobe in the range of $3.72 to $3.86 per diluted common share.

2018 FFO, which includes the $0.16 per diluted common share of first quarter adjustments, is now expected to be in the range of $3.56to $3.70 per diluted common share, revised from the previous range of $3.72 to $3.86.

http://investors.taubman.com/news/press-releases/press-release-details/2018/Taubman-Centers-Increases-Quarterly-Common-Dividend-48-Percent-to-0655-Per-Share/default.aspx

Q118 Supplemental

ER3


The company continues to expect comparable center NOI growth of 2 to 3 percent for the year.

This guidance now assumes the company’s beneficial share of lease cancellation income to be about $16 million, up from the previousestimate of about $14 million. This guidance does not include assumptions for future costs associated with shareowner activism orfluctuations in the fair value of the SPG common shares investment.

Supplemental Investor Information Available

The company provides supplemental investor information along with its earnings announcements, available online at www.taubman.comunder “Investors.” This includes the following:

• Earnings Press Release• Company Overview• Operational Statistics• Summary of Key Guidance Measures• Income Statements• Changes in Funds from Operations and Earnings Per Common Share• Balance Sheets• Debt Summary• Capital Spending and Balance Sheet Information • Owned Centers• Redevelopments• Anchors & Major Tenants in Owned Portfolio• Components of Other Income, Other Operating Expense, and Nonoperating Income (Expense)• Earnings Reconciliations• Operating Statistics Glossary

Investor Conference Call

The company will host a conference call at 10:00 a.m. EDT on Friday, April 27 to discuss these results, business conditions and the company’soutlook for the remainder of 2018. The conference call will be simulcast at www.taubman.com. An online replay will follow shortly afterthe call and continue for approximately 90 days.

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 shopping centers in the U.S. and Asia. Taubman’s U.S.-owned properties are the most productive in the publiclyheld U.S. regional 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,” “company,” “Taubman” or an operating platform mean TaubmanCenters, Inc. and/or one or more of a number of separate, affiliated entities. Business is actually conducted by an affiliated entity ratherthan Taubman Centers, Inc. itself or the named operating platform.

http://www.taubman.com/



Q118 Supplemental

ER4


This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended,and Section 21E of the Securities Exchange Act of 1934, as amended. These statements reflect management's current views with respectto future events and financial performance. Forward-looking statements can be identified by words such as “will”, “may”, “could”, “expect”,“anticipate”, “believes”, “intends”, “should”, “plans”, “estimates”, “approximate”, “guidance” and similar expressions in this press releasethat predict or indicate future events and trends and that do not report historical matters. The forward-looking statements included in thisrelease are made as of the date hereof. Except as required by law, the company assumes no obligation to update these forward-lookingstatements, even if new information becomes available in the future. Actual results may differ materially from those expected because ofvarious risks, uncertainties and other factors. Such factors include, but are not limited to: changes in market rental rates; unscheduledclosings or bankruptcies of tenants; relationships with anchor tenants; trends in the retail industry; challenges with department stores;changes in consumer shopping behavior; the liquidity of real estate investments; the company’s ability to comply with debt covenants; theavailability and terms of financings; changes in market rates of interest and foreign exchange rates for foreign currencies; changes in valueof investments in foreign entities; 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 ofinvestments in foreign entities; risks related to joint venture properties; insurance costs and coverage; security breaches that could impactthe company’s information technology, infrastructure or personal data; costs associated with response to technology breaches; the loss ofkey management personnel; shareholder activism costs and related diversion of management time; terrorist activities; maintaining thecompany’s status as a real estate investment trust; changes in the laws of states, localities, and foreign jurisdictions that may increasetaxes on the company’s operations; and changes in global, national, regional and/or local economic and geopolitical climates. You shouldreview the company's filings with the Securities and Exchange Commission, including “Risk Factors” in its most recent Annual Report onForm 10-K and subsequent quarterly reports, for a discussion of such risks and uncertainties.

CONTACTS:Ryan Hurren, Taubman, Director, Investor Relations, 248-258-7232, [email protected] Mainville, Taubman, Director, Strategic Communications, 248-258-7469, [email protected]

Q118 Supplemental

1

OVERVIEW

Company Information

Taubman Centers, Inc. (the Company or TCO) is a Michigan corporation that operates as a self-administered and self-managed real estateinvestment trust (REIT). The Taubman Realty Group Limited Partnership (Operating Partnership or TRG) is a majority-owned partnershipsubsidiary of TCO that owns direct or indirect interests in all of its real estate properties. In this report, the term “Company" refers to TCO,the Operating Partnership, and/or the Operating Partnership's subsidiaries as the context may require. The Company engages in theownership, management, leasing, acquisition, disposition, development, and expansion of retail shopping centers and interests therein.The Company’s owned portfolio as of March 31, 2018 included 24 urban and suburban shopping centers in 11 U.S. states, Puerto Rico,South Korea, and China.

This package was prepared to provide supplemental operating, financing, and development information of the Company and the OperatingPartnership for the first quarter of 2018. The information herein contains terms, captions, and other content for which definitions andadditional background can be found in the Company's regular filings with the Securities and Exchange Commission, including its mostrecent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Refer to www.taubman.com for the latest available version ofthis package, which will incorporate any revisions to the information.

If you have any questions, comments, or suggestions regarding the information contained in this package or would like additional informationabout TCO, please contact:

Ryan Hurren Erik WrightDirector, Investor Relations Senior Analyst, Investor Relations200 East Long Lake Road, Suite 300 200 East Long Lake Road, Suite 300Bloomfield Hills, Michigan 48304-2324 Bloomfield Hills, Michigan 48304-2324Telephone: (248) 258-7232 Telephone: (248) 258-7390Email: [email protected] Email: [email protected]

The Company maintains self-service investor alerts that can be found on the Company's website, www.taubman.com, Investors - InvestorResources - Email Alerts tab.

Analyst Coverage

Taubman Centers, Inc. is followed by the analysts listed above. The Company believes the list to be complete, but can provide no assurances.Please note that any opinions, estimates, or forecasts regarding the Company's performance made by these analysts are independent ofthe Company and do not represent opinions, forecasts, or predictions of its management. The Company does not, by its reference aboveor distribution, imply its endorsement of or concurrence with such information, conclusions, or recommendations.

Company Analyst Email Address

Bank of America Securities-Merrill Lynch Craig Schmidt [email protected]

BMO Capital Markets Jeremy Metz [email protected]

Boenning & Scattergood, Inc. Floris van Dijkum [email protected]

BTIG James Sullivan [email protected]

Citigroup Global Markets, Inc. Christy McElroy [email protected]

Deutsche Bank Securities, Inc. Vincent Chao [email protected]

Evercore ISI Steve Sakwa [email protected]

Goldman Sachs & Co. Caitlin Burrows [email protected]

Green Street Advisors, Inc. Daniel Busch [email protected]

Jefferies, LLC Omotayo Okusanya [email protected]

J.P. Morgan Securities Michael Mueller [email protected]

Keybanc Capital Markets, Inc. Todd Thomas [email protected]

Mizuho Securities USA Inc. Haendel St. Juste [email protected]

Morgan Stanley Richard Hill [email protected]

Raymond James Collin Mings [email protected]

Sandler O'Neill & Partners, L.P. Alexander Goldfarb [email protected]

UBS Securities, LLC Nick Yulico [email protected]

Q118 Supplemental

2

OVERVIEW

Trading Information

The Company's common stock and two issuances of preferred stock are traded on the New York Stock Exchange.

SymbolCommon Stock TCO6.5% Series J Cumulative Redeemable Preferred Stock TCO PR J6.25% Series K Cumulative Redeemable Preferred Stock TCO PR K

Common Stock

Market Quotation per Common Share Common StockDividends

Declared and PaidQuarters-Ended High Low

March 31, 2018 66.39 54.97 0.655

March 31, 2017 76.17 64.08 0.625June 30, 2017 66.64 57.77 0.625September 30, 2017 61.90 49.14 0.625December 31, 2017 65.71 46.30 0.625

Preferred Equity(in millions of dollars)

Face Value Book ValueNumber of Shares

OutstandingOptional

Redemption Date6.5% Series J Cumulative Redeemable Preferred Stock 192.5 186.2 7,700,000 August 14, 20176.25% Series K Cumulative Redeemable Preferred Stock 170.0 164.4 6,800,000 March 15, 2018

362.5 350.6

Q118 Supplemental

3

Summary Financial InformationFor the Periods Ended March 31, 2018 and 2017(in thousands of dollars, except as noted)

Three Months Ended2018 2017

Funds from Operations (1):FFO:

TRG 76,560 74,426TCO 54,308 52,592

FFO per common share:Basic 0.89 0.87Diluted 0.88 0.85Growth rate-diluted 3.5%

Adjusted FFO:TRG 90,358 80,235TCO 64,100 56,805

Adjusted FFO per common share:Basic 1.05 0.94Diluted 1.04 0.92Growth rate-diluted 13.0%

Earnings attributable to common shareowners:Net income attributable to common shareowners:

Basic 18,590 17,170Diluted 18,618 17,215Per common share - basic 0.31 0.28Per common share - diluted 0.30 0.28

Dividends (2):Dividends paid per common share 0.655 0.625Payout ratio of Adjusted FFO per diluted common share 63% 68%

Coverage (3):Interest only 3.2 3.3Fixed charges 2.6 2.6

Market Capitalization:Closing stock price at end of period 56.91 66.02Market equity value of share equivalents 4,891,022 5,655,055Preferred equity (at face value) 362,500 362,500Net beneficial interest in debt 4,803,200 4,451,700Total market capitalization 10,056,722 10,469,255Debt to total market capitalization 47.8% 42.5%

Ownership:TCO common shares outstanding:

End of period 60,991,114 60,685,420Weighted average - basic 60,917,235 60,555,466Weighted average - diluted 61,206,377 61,053,756

TRG units of partnership interest:End of period 85,943,095 85,656,699Weighted average - basic 85,871,893 85,533,412Weighted average - diluted 87,032,297 86,902,964

TCO ownership of TRG:End of period 71.0% 70.8%Weighted average - basic 70.9% 70.8%Weighted average - diluted 70.0% 69.7%

(1) FFO for the three months ended March 31, 2018 includes, and Adjusted FFO excludes, a reduction of a previously expensed restructuring charge, costs associated with shareowner activism,the fluctuation in the fair value of the Simon Property Group (SPG) common shares investment, and a charge recognized in connection with the write-off of deferred financing costs relatedto the early payoff of the Company's $475 million unsecured term loan. In connection with the adoption of Accounting Standards Update No. 2016-01 on January 1, 2018, the Companynow measures its investment in SPG common shares at fair value with changes in value recorded through net income. FFO for the three months ended March 31, 2017 includes, andAdjusted FFO excludes, a restructuring charge, costs associated with shareowner activism, and a charge recognized in connection with the partial write-off of deferred financing costsrelated to the Company's primary unsecured revolving line of credit in February 2017.

(2) The tax status of total 2018 common dividends declared and to be declared, assuming continuation of a $0.655 per common share quarterly dividend, is estimated to be 100% of ordinaryincome. The tax status of total 2018 dividends paid on Series J and Series K Preferred Stock is estimated to be 100% ordinary income. These are forward-looking statements and certainsignificant factors could cause the actual results to differ materially.

(3) Interest coverage ratio is calculated by dividing beneficial interest in EBITDA or adjusted beneficial interest in EBITDA by beneficial interest expense. Fixed charges coverage ratio is calculatedby dividing beneficial interest in EBITDA or adjusted beneficial interest in EBITDA by beneficial interest expense and the sum of preferred dividends, distributions, and debt payments. Forthe three months ended March 31, 2018, EBITDA was adjusted to exclude a reduction of a previously expensed restructuring charge, costs associated with shareowner activism, and thefluctuation in the fair value of the SPG common shares investment. For the three months ended March 31, 2017, EBITDA was adjusted to exclude a restructuring charge, costs associatedwith shareowner activism, and a gain recognized in connection with the sale of the Valencia Place office tower at Country Club Plaza.

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Operational StatisticsFor the Periods Ended March 31, 2018 and 2017


Occupancy and Leased Space (1):Ending occupancy - all centers 92.2% 92.1%Ending occupancy - comparable (2) 92.8% 92.8%Leased space - all centers 94.5% 94.5%Leased space - comparable (2) 95.0% 94.8%

Average Base Rents (2)(3):Average rent per square foot - all comparable centers: Consolidated Businesses 71.65 68.75 Unconsolidated Joint Ventures 49.30 47.70 Combined 57.73 55.54Average rent per square foot growth - all comparable centers 3.9%

Average rent per square foot - U.S. comparable centers: Consolidated Businesses 71.65 68.75 Unconsolidated Joint Ventures 53.72 53.03 Combined 61.91 60.12Average rent per square foot growth - U.S. comparable centers 3.0%

12-Months Trailing2018 2017

Opening/Closing Rents (2)(3):Opening base rent per square foot: Consolidated Businesses 71.59 77.52 Unconsolidated Joint Ventures 44.46 54.67 Combined 57.28 66.37Square feet of GLA opened: Consolidated Businesses 398,857 431,279 Unconsolidated Joint Ventures 445,158 410,904 Combined 844,015 842,183Closing base rent per square foot: Consolidated Businesses 66.45 69.54 Unconsolidated Joint Ventures 44.05 44.50 Combined 54.84 57.38Square feet of GLA closed: Consolidated Businesses 432,899 431,028 Unconsolidated Joint Ventures 465,379 407,397 Combined 898,278 838,425Releasing spread per square foot: Consolidated Businesses 5.14 7.98 Unconsolidated Joint Ventures 0.41 10.17 Combined 2.44 8.99Releasing spread per square foot growth: Consolidated Businesses 7.7% 11.5% Unconsolidated Joint Ventures 0.9% 22.9% Combined 4.4% 15.7%

(1) Occupancy statistics include TILs and anchor spaces at value and outlet centers (Dolphin Mall, Great Lakes Crossing Outlets, and Taubman Prestige Outlets Chesterfield).

(2) Statistics exclude non-comparable centers for all periods presented. Comparable centers are generally defined as centers that were owned and open for the entire current and preceding periodpresented, excluding centers impacted by significant redevelopment activity. In addition, due to specific events ongoing at The Mall of San Juan and Taubman Prestige Outlets Chesterfield, thesecenters have also been excluded from comparable center statistics. The three months ended March 31, 2017 statistics have been restated to include comparable centers to 2018. CityOn.Xi’an,International Market Place, and Starfield Hanam have been excluded from comparable center 12-month trailing statistics reported for 2018 and 2017 as the centers were not open for the entire12 months ended March 31, 2017.

(3) Opening and closing statistics exclude spaces greater than or equal to 10,000 square feet.

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Operational Statistics (continued)For the Periods Ended March 31, 2018 and 2017

Three Months Ended 12-Months Trailing2018 2017 2018 2017

Mall Tenant Sales (in thousands of dollars) (1):Mall tenant sales - all centers 1,582,682 1,388,677 6,521,792 5,960,023Mall tenant sales - comparable (2) 1,454,999 1,305,218 5,313,745 5,178,449Sales per square foot (2) 837 797Sales per square foot growth (2) 12.4 % 5.0 %

Occupancy Costs as a Percentage of Sales (1):All centers: Consolidated Businesses 15.1 % 14.7 % Unconsolidated Joint Ventures 13.3 % 14.4 % Combined 14.2 % 14.5 %Comparable centers (2): Consolidated Businesses 14.2 % 14.3 % Unconsolidated Joint Ventures 13.1 % 13.8 % Combined 13.7 % 14.0 %

Tenant Bankruptcy Filings as a Percentage of Total Tenants 1.1 % 0.9 %

Growth in Net Operating Income at 100% (2):Including all lease cancellation income 9.2 % 3.9 %Excluding all lease cancellation income 4.7 % 2.8 %

Number of Owned Properties at End of Period 24 24

(1) Based on reports of sales furnished by mall tenants. Sales per square foot exclude spaces greater than or equal to 10,000 square feet.

(2) Statistics exclude non-comparable centers for all periods presented. Comparable centers are generally defined as centers that were owned and open for the entire current and preceding periodpresented, excluding centers impacted by significant redevelopment activity. In addition, due to specific events ongoing at The Mall of San Juan and Taubman Prestige Outlets Chesterfield, thesecenters have also been excluded from comparable center statistics. The three months ended March 31, 2017 statistics have been restated to include comparable centers to 2018. CityOn.Xi’an,International Market Place, and Starfield Hanam have been excluded from comparable center 12-month trailing statistics reported for 2018 and 2017 as the centers were not open for the entire12 months ended March 31, 2017.

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2018 Annual Guidance(may not add or recalculate due to rounding)

Range for Year EndedDecember 31, 2018 (1)

Adjusted Funds from Operations per common share $3.72 $3.86

Costs associated with shareowner activism (2) (0.04) (0.04)

Fluctuation in fair value of SPG common shares investment (2) (0.12) (0.12)

Funds from Operations per common share 3.56 3.70

Real estate depreciation - TRG (2.43) (2.33)

Distributions to participating securities of TRG (0.03) (0.03)

Depreciation of TCO's additional basis in TRG (0.11) (0.11)

Net income attributable to common shareowners, per common share (EPS) $0.99 $1.23

Summary of Key Guidance Assumptions - 2018Year Ended Year Ended

December 31, 2018 December 31, 2017Guidance (1) Actual

NOI at 100% - comparable centers - growth % 2% - 3% 1.7% (3)0.7% (4)

Domestic and non-U.S. general and administrative expense $9 - $10 million perquarter

$39.0 million

Beneficial share of lease cancellation income About $16 million $12.1 millionEnding occupancy - comparable centers (5) Around 95% 95.7%Consolidated interest expense, at 100% $130 - $133 million $108.6 millionUnconsolidated interest expense, at 100% $130 - $132 million $130.3 millionConsolidated and Unconsolidated interest expense, at 100% $260 - $265 million $238.9 millionConsolidated interest expense, at beneficial share $118 - $121 million $96.6 millionUnconsolidated interest expense, at beneficial share $67 - $69 million $67.3 millionConsolidated and Unconsolidated interest expense, at beneficial share $185 - $190 million $163.9 million

(1) Guidance is current as of April 26, 2018, see "Taubman Centers, Inc. Issues Strong First Quarter Results"

(2) Amount represents actual amounts recognized through the first quarter of 2018. Amount does not include future assumptions of amounts to be incurred during 2018. Inconnection with the adoption of Accounting Standards Update No. 2016-01 on January 1, 2018, the Company now measures its investment in SPG common shares at fairvalue with changes in value recorded through net income.(3) Represents NOI growth including lease cancellation income for the comparable centers that were owned and open, excluding centers impacted by significant redevelopmentactivity, during the entire two year period ending December 31, 2017. In addition, The Mall of San Juan has been excluded from comparable center statistics as a result ofHurricane Maria and the expectation that the center’s performance will be impacted for the foreseeable future.

(4) Represents NOI growth excluding lease cancellation income for the comparable centers that were owned and open, excluding centers impacted by significant redevelopmentactivity, during the entire two year period ending December 31, 2017. In addition, The Mall of San Juan has been excluded from comparable center statistics as a result ofHurricane Maria and the expectation that the center’s performance will be impacted for the foreseeable future.

(5) The year ended December 31, 2017 statistic has been restated to include comparable centers to 2018.

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Income StatementFor the Three Months Ended March 31, 2018 and 2017(in thousands of dollars)

2018 2017

CONSOLIDATEDBUSINESSES

UNCONSOLIDATEDJOINT

VENTURES (1)CONSOLIDATED

BUSINESSES

UNCONSOLIDATEDJOINT

VENTURES (1)REVENUES:

Minimum rents 86,825 92,041 84,303 83,525

Overage rents 2,625 5,881 2,575 5,062

Expense recoveries 51,528 45,870 53,012 45,748

Management, leasing, and development services 794 917

Other 19,720 11,496 8,276 6,265

Total revenues 161,492 155,288 149,083 140,600

EXPENSES:

Maintenance, taxes, utilities, and promotion 37,637 40,378 39,711 33,714

Other operating 23,866 9,986 19,319 11,403

Management, leasing, and development services 302 579

General and administrative 8,493 10,751

Restructuring charge (346) 1,896

Costs associated with shareowner activism 3,500 3,500

Interest expense 30,823 32,467 25,546 30,369

Depreciation and amortization 35,022 33,469 37,711 30,508

Total expenses 139,297 116,300 139,013 105,994

Nonoperating income (expense) (2) (7,143) 347 2,779 1,851

15,052 39,335 12,849 36,457

Income tax expense (184) (1,737) (208) (2,943)

37,598 33,514

Gain on disposition, net of tax (3) 3,713

37,598 37,227

Equity in income of Unconsolidated Joint Ventures 19,728 20,118

Net income 34,596 32,759

Net income attributable to noncontrolling interests:

Noncontrolling share of income of consolidated joint ventures (1,344) (1,444)

Noncontrolling share of income of TRG (8,279) (7,790)

Distributions to participating securities of TRG (599) (571)

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

Net income attributable to Taubman Centers, Inc. common shareowners 18,590 17,170

SUPPLEMENTAL INFORMATION:

EBITDA - 100% 80,897 105,271 76,106 101,778

EBITDA - outside partners' share (6,257) (51,027) (6,246) (47,863)

Beneficial interest in EBITDA 74,640 54,244 69,860 53,915

Beneficial share of gain on disposition (3) (2,814)

Beneficial interest expense (27,812) (16,751) (22,571) (15,781)

Beneficial income tax expense - TRG and TCO (134) (710) (177) (1,633)

Beneficial income tax expense - TCO 3 100

Non-real estate depreciation (1,136) (689)

Preferred dividends and distributions (5,784) (5,784)

Funds from Operations attributable to partnership unitholders andparticipating securities of TRG 39,777 36,783 40,739 33,687

STRAIGHTLINE AND PURCHASE ACCOUNTING ADJUSTMENTS:

Net straight-line adjustments to rental revenue, recoveries, and groundrent expense at TRG% 656 711 (97) 593

Country Club Plaza purchase accounting adjustments - minimum rentsincrease at TRG% 1,487 52

The Mall at Green Hills purchase accounting adjustments - minimum rentsincrease 31 49

(1) With the exception of the Supplemental Information, amounts include 100% of the Unconsolidated Joint Ventures. Amounts are net of intercompany transactions. The Unconsolidated Joint Venturesare presented at 100% in order to allow for measurement of their performance as a whole, without regard to the Company's ownership interest.(2) During the three months ended March 31, 2018, an expense of $10.3 million was incurred for the fluctuation in the fair value of the SPG common shares investment. In connection with the adoptionof Accounting Standards Update No. 2016-01 on January 1, 2018, the Company now measures its investment in SPG common shares at fair value with changes in value recorded through net income.

(3) During the three months ended March 31, 2017, the joint venture that owns the Valencia Place office tower at Country Club Plaza recognized a $4.4 million gain ($2.8 million at TRG's share) and$0.7 million ($0.7 million at TRG's share) of income tax expense in connection with the sale of the office tower.

Q118 Supplemental

8

Changes in Funds from Operations and Earnings per Common ShareFor the Three Months Ended March 31, 2018(all per share amounts on a diluted basis unless otherwise noted; rounded to nearest half penny; amounts may not add due to rounding)

2017 First Quarter Funds from Operations per Common Share $ 0.85

Restructuring charge 0.020

Costs associated with shareowner activism 0.040

Partial write-off of deferred financing costs 0.005

2017 First Quarter Funds from Operations per Common Share - Adjusted $ 0.92

Changes - 2018 vs. 2017

Minimum rents 0.070

Lease cancellation income 0.105

Other operating expense 0.015

General and administrative 0.025

Interest expense (0.045)

Non-comparable centers (0.055)

Other 0.005

2018 First Quarter Funds from Operations per Common Share - Adjusted $ 1.04

Costs associated with shareowner activism (0.040)

Fluctuation in fair value of SPG common shares investment (0.120)

2018 First Quarter Funds from Operations per Common Share $ 0.88

2017 First Quarter Earnings per Common Share $ 0.28

Changes - 2018 vs. 2017

Change in FFO per common share 0.030

Gain on disposition, net of tax (0.025)

Depreciation and other 0.015

2018 First Quarter Earnings per Common Share $ 0.30

Q118 Supplemental

9

Balance Sheet(in thousands of dollars)

As ofConsolidated Balance Sheet of Taubman Centers, Inc.: March 31, 2018 December 31, 2017 (1)Assets:

Properties 4,527,155 4,461,045

Accumulated depreciation and amortization (1,311,979) (1,276,916)

3,215,176 3,184,129

Investment in Unconsolidated Joint Ventures 603,848 605,629

Cash and cash equivalents 53,920 42,499

Restricted cash 126,954 121,905

Accounts and notes receivable, net 73,917 78,566

Accounts receivable from related parties 2,235 1,365

Deferred charges and other assets 169,945 180,499

4,245,995 4,214,592

Liabilities:Notes payable, net 3,640,128 3,555,228

Accounts payable and accrued liabilities 277,743 307,041

Distributions in excess of investments in and net income of Unconsolidated Joint Ventures 490,485 494,851

4,408,356 4,357,120

Redeemable noncontrolling interest 7,500 7,500

Equity (Deficit):Taubman Centers, Inc. Shareowners' Equity:

Series B Non-Participating Convertible Preferred Stock 25 25

Series J Cumulative Redeemable Preferred Stock

Series K Cumulative Redeemable Preferred Stock

Common Stock 610 608

Additional paid-in capital 673,727 675,333

Accumulated other comprehensive income (loss) 157 (6,919)

Dividends in excess of net income (667,602) (646,807)

6,917 22,240

Noncontrolling interests:Noncontrolling interests in consolidated joint ventures (159,654) (160,359)

Noncontrolling interests in partnership equity of TRG (17,124) (11,909)

(176,778) (172,268)

(169,861) (150,028)

4,245,995 4,214,592

(1) In connection with the adoption of Accounting Standards Update No. 2016-18, "Statement of Cash Flows - Restricted Cash", the Company revisited its presentation of cash, deposits, and otherinvestments subject to restrictions. In doing so, the Company reclassified $119.2 million from Deferred Charges and Other Assets to Restricted Cash on the Consolidated Balance Sheet as ofDecember 31, 2017, to conform to current year classifications.

Combined Balance Sheet of Unconsolidated Joint Ventures:

Assets:Properties 3,762,220 3,756,890

Accumulated depreciation and amortization (789,714) (767,678)

2,972,506 2,989,212

Cash and cash equivalents 140,243 147,102

Accounts and notes receivable, net 125,570 121,173

Deferred charges and other assets 121,356 136,837

3,359,675 3,394,324

Liabilities:Notes payable, net 2,854,469 2,860,384

Accounts payable and other liabilities 441,808 471,948

3,296,277 3,332,332

Accumulated deficiency in assets:Accumulated deficiency in assets - TRG (45,787) (47,660)

Accumulated deficiency in assets - Joint Venture Partners 108,723 108,250

Accumulated other comprehensive loss - TRG 225 (678)

Accumulated other comprehensive loss - Joint Venture Partners 237 2,080

63,398 61,992

3,359,675 3,394,324

Q118 Supplemental

10

Debt SummaryAs of March 31, 2018(in millions of dollars, amounts may not add due to rounding)

Ownership % Amortizing (A)/ Maturity 100% Beneficial Interest Effective Rate LIBOR RateConsolidated Fixed Rate Debt: (if not 100%) Interest Only (I) Date 3/31/2018 3/31/2018 (a) 3/31/2018 (b) SpreadCherry Creek Shopping Center 50.00% I 6/1/2028 550.0 275.0 3.85%City Creek Center A 8/1/2023 78.3 78.3 4.37%Great Lakes Crossing Outlets A 1/6/2023 202.3 202.3 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 300.0 300.0 4.85%

2,130.6 1,855.63.81% 3.81%

Consolidated Floating Rate Debt:The Mall at Green Hills I 12/1/2018 (c) 150.0 150.0 3.26% 1.60%International Market Place 93.50% I 8/14/2018 (d) 293.8 (d) 274.7 3.41% 1.75% (d)TRG $65M Revolving Credit Facility I 4/28/2018 28.0 (e) 28.0 3.28% (e) 1.40%TRG $1.1B Revolving Credit Facility I 2/1/2021 (f) 265.0 265.0 3.13% (f) 1.45% (f)

736.8 717.73.27% 3.27%

Consolidated Floating Rate Debt Swapped to Fixed:TRG $300M Term Loan I 2/1/2022 300.0 300.0 3.74% (g) 1.60% (g)TRG $250M Term Loan I 3/31/2023 250.0 250.0 3.24% (h) 1.60% (h)TRG $1.1B Revolving Credit Facility (portion swapped) I 4/28/2018 225.0 225.0 3.10% (f) 1.45% (f)U.S. Headquarters I 3/1/2024 12.0 12.0 3.49% (i)

787.0 787.03.39% 3.39%

Total Consolidated Deferred Financing Costs, Net (14.2) (13.6)

Total Consolidated 3,640.1 3,346.6Weighted Rate (excluding deferred financing costs) 3.61% 3.60%

Joint Ventures Fixed Rate Debt:Country Club Plaza 50.00% I - until

5/1/20194/1/2026 320.0 160.0 3.85%

International Plaza 50.10% A 12/1/2021 308.1 154.3 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 Hanam 34.30% I 11/25/2020 291.1 (j) 99.8 2.58% (j)Sunvalley 50.00% A 9/1/2022 171.8 85.9 4.44%Taubman Land Associates 50.00% A 11/1/2022 21.5 10.8 3.84%The Mall at University Town Center 50.00% I - until

12/1/202211/1/2026 280.0 140.0 3.40%

Waterside Shops 50.00% I 4/15/2026 165.0 82.5 3.86%Westfarms 78.94% A 7/1/2022 287.4 226.9 4.50%

2,294.9 1,185.33.91% 4.01%

Joint Ventures Floating Rate Debt:CityOn.Zhengzhou 49.00% A 12/1/2026 93.3 (k) 45.7 6.37% (k)

93.3 45.76.37% 6.37%

Joint Venture Floating Rate Debt Swapped to Fixed:Fair Oaks Mall 50.00% A 7/13/2018 259.2 129.6 4.10% (l)International Plaza 50.10% A 12/1/2021 164.8 82.6 3.58% (m)Starfield Hanam 34.30% I 11/8/2020 52.1 (n) 17.9 3.12% (n)

476.0 230.03.81% 3.84%

Total Joint Venture Deferred Financing Costs, Net (9.8) (4.4)

Total Joint Venture 2,854.5 1,456.6Weighted Rate (excluding deferred financing costs) 3.98% 4.05%

TRG Beneficial Interest Totals:Fixed Rate Debt 4,425.5 3,040.9

3.86% 3.88%Floating Rate Debt 830.0 763.4

3.62% 3.46%Floating Rate Swapped to Fixed 1,263.0 1,017.0

3.55% 3.49%

Total Deferred Financing Costs, Net (24.0) (18.0)

Total 6,494.6 4,803.2Weighted Rate (excluding deferred 3.77% 3.73%

Weighted Average Maturity Fixed Debt 7.5

Weighted Average Maturity Total Debt 5.7

Q118 Supplemental

11

Debt Summary (continued)As of March 31, 2018

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

Beneficial Share of Principal Amortization and Debt Maturities

YearFixed Rate

DebtWeighted

RateFloating Rate

DebtWeighted

Rate

FloatingSwapped to

FixedWeighted

Rate

Total DeferredFinancingCosts, Net Total Debt

Weighted Rate

2018 15.8 4.38% 455.2 3.37% 130.9 4.09% (2.8) 599.1 3.56%

2019 23.9 4.34% 5.8 6.37% 1.8 3.58% (2.9) 28.6 4.67%

2020 125.7 2.94% 6.9 6.37% 19.7 3.16% (2.8) 149.6 3.12%

2021 169.9 4.77% 271.9 3.21% 302.6 3.22% (2.4) 742.0 3.57%

2022 310.3 4.45% 6.9 6.37% 300.0 3.74% (1.8) 615.4 4.12%

2023 258.4 3.84% 5.8 6.37% 250.0 3.24% (1.4) 512.8 3.58%

2024 237.0 3.96% 5.8 6.37% 12.0 3.49% (1.2) 253.6 3.99%

2025 12.6 4.22% 3.4 6.37% (1.1) 14.9 4.69%

2026 358.5 3.71% 1.7 6.37% (1.0) 359.1 3.72%

2027 1,006.7 3.49% (0.7) 1,006.0 3.49%

2028 522.2 4.32% — 522.2 4.32%

3,040.9 3.88% 763.4 3.46% 1,017.0 3.49% (18.0) 4,803.2 3.73%

Unencumbered Assets

Center Location Ownership %

Consolidated Businesses:

Beverly Center Los Angeles, CA 100% (o)

Dolphin Mall Miami, FL 100% (o)

The Gardens on El Paseo Palm Desert, CA 100% (o)

The Mall of San Juan San Juan, PR 95%

Taubman Prestige Outlets Chesterfield Chesterfield, MO 100%

Unconsolidated Joint Ventures:

Stamford Town Center Stamford, CT 50%

(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 derivativesused to hedge the refinancing of certain fixed rate debt or interest rate cap premiums, if any.

(c) Two, one-year extension options are available.

(d) $330.9 million construction facility which bears interest at LIBOR + 1.75% and decreases to LIBOR + 1.60% upon achieving certain performance measures. Two, one-year extensionoptions 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 $4.6 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 + 1.15% to 1.70% with a facility fee ranging from 0.20% to 0.25% based on the Company's total leverage ratio. Two, six-monthextension options are available. Beginning March 2018, the LIBOR rate is swapped to 1.65% through February 2019 on $225 million of the $1.1B TRG revolving credit facility due tothe reallocation of a portion of the swaps previously hedging the TRG $475 million term loan, which was repaid in March 2018. This results in an effective interest rate in the rangeof 2.80% to 3.35% through February 2019 on $225 million of the credit facility balance.

(g) The $300 million unsecured term loan bears interest at a range of LIBOR + 1.25% to 1.90% based on the Company's total leverage ratio. Through the term of the loan, the LIBOR rateis swapped to a fixed rate of 2.14%, which results in an effective interest rate in the range of 3.39% to 4.04%.

(h) The $250M unsecured term loan bears interest at a range of LIBOR + 1.25% to 1.90% based on the Company's total leverage ratio. The LIBOR rate is swapped through February 2019to a fixed rate of 1.64%, which results in an effective interest rate in the range of 2.89% to 3.54%.

(i) Debt is swapped to an effective rate of 3.49% until maturity.

(j) 520 billion Korean Won (KRW) ($490.0 million USD equivalent at March 31, 2018) non-recourse construction facility which bears interest at the Korea Development Bank Five-YearBond Yield plus 1.06% and is fixed upon each draw. A letter of credit totaling $53.2 million USD is outstanding on this facility as security for the Starfield Hanam USD loan. No drawswere allowed after December 31, 2016.

(k) 834.2 million Renminbi (RMB) ($132.6 million USD equivalent at March 31, 2018) non-recourse construction facility which bears interest at 130% of the RMB People's Bank of Chinabase lending rate for a loan term greater than five years. Rate resets in January each year.

(l) Debt is swapped to an effective rate of 4.10% until April 30, 2018, which is 2.5 months prior to maturity.

(m) 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.

(n) $52.1 million USD construction loan which bears interest at three-month LIBOR + 1.60%. The joint venture has entered into a cross-currency interest rate swap to hedge the foreignexchange and interest rate risk associated with this debt since the entity's functional currency is KRW and the loan is in USD. The LIBOR rate plus spread have been swapped untiltwo months prior to maturity to a fixed rate of 3.12%. The foreign exchange rate for the initial exchange, periodic interest payments and defined in the loan agreement is less than acertain amount for calendar year 2020, the lender may require the loan to amortize based on a 30-year amortization period retroactive to May 2021.

(o) As of March 31, 2018, the entities that own these centers were guarantors under the $1.1 billion primary unsecured revolving line of credit and both the $300 million and $250 millionunsecured term loans, and were unencumbered assets. Per the agreements, the Company is required to have a minimum of three eligible unencumbered assets with a minimumunencumbered asset value. Therefore, while any of the assets may be removed from the unencumbered asset pool and encumbered upon notice to lender, provided that there is nodefault and the required covenant calculations are met on a pro forma basis, a replacement eligible unencumbered asset would need to be added to the unencumbered asset pool.

Q118 Supplemental

12

Capital Spending(in thousands of dollars)

Three Months Ended March 31, 2018

ConsolidatedBusinesses

at 100%


at TRG%

UnconsolidatedJoint Ventures

at 100%


at TRG%Total at TRG%

Capital Additions to Properties (1):

New development projects:

Asia (2) (6,482) (3,185)

Existing Centers:

Projects with incremental GLA or anchor replacement 8,566 8,566 19 10

Projects with no incremental GLA and other 54,032 52,702 2,667 1,249

Mall tenant allowances 5,829 5,017 3,644 1,554

Asset replacement costs recoverable from tenants 268 250 996 742

Corporate office improvements and equipment and other 67 67

68,762 66,602 844 370

Capitalized Leasing Costs (1) 2,039 1,917 1,635 846 2,763

Construction Work in Process (3) 435,318 432,775 5,559 3,271 436,046

Capitalized Interest 3,293 3,285 — — 3,285

(1) Costs are net of intercompany profits and are computed on an accrual basis.

(2) Reflects true-up of accruals for previously estimated capital spending at CityOn.Xi'an and CityOn.Zhengzhou.

(3) Interest is being capitalized on $407 million of construction work in process.

Certain Balance Sheet InformationConsolidated Amount as of March 31, 2018(in millions of dollars)

Properties:

Peripheral land 17.2 (1)

Accounts and notes receivable, net:

Straight-line rents and recoveries 34.5

Deferred charges and other assets:

Prepaids and deposits 11.5

590,124 SPG common shares 91.1 (2)

Accounts payable and accrued liabilities

Straight-line ground rent 62.7

Community Development District obligation 47.1 (3)

(1) Valued at historical cost. Peripheral land excludes land associated with constructionin process.

(2) Recorded at fair value.

(3) The expense portion of the related payments, which are generally recoverable fromtenants, are included in the line item maintenance, taxes, utilities, and promotion inthe Company's Income Statement.

Q118 Supplemental

13

Owned CentersAs of March 31, 2018

Sq. Ft. of GLA/ Year Opened/ YearCenter Anchors Mall GLA Expanded Acquired Ownership %Consolidated Businesses: Beverly Center Bloomingdale's, Macy's 793,000 1982 100% Los Angeles, CA 469,000 Cherry Creek Shopping Center Macy's, Neiman Marcus, Nordstrom 1,025,000 1990/1998/ 50% Denver, CO 623,000 2015 City Creek Center Macy's, Nordstrom 622,000 2012 100% Salt Lake City, UT 341,000 Dolphin Mall Bass Pro Shops Outdoor World, Bloomingdale's Outlet, Burlington 1,429,000 2001/2007/ 100% Miami, FL Coat Factory, Cobb Theatres, Dave & Buster's, Marshalls, Neiman 702,000 2015

Marcus-Last Call, Polo Ralph Lauren Factory Store. Saks Off 5th The Gardens on El Paseo Saks Fifth Avenue 236,000 1998/2010 2011 100% Palm Desert, CA 186,000 Great Lakes Crossing Outlets AMC Theatres, Bass Pro Shops Outdoor World, Burlington Coat 1,355,000 (1) 1998 100% Auburn Hills, MI Factory, Legoland, Lord & Taylor Outlet, Round 1 Bowling and Amusement, 533,000 (Detroit Metropolitan Area) Saks Off 5th, Sea Life The Mall at Green Hills Dillard's, Macy's, Nordstrom 851,000 (2) 1955/2011 2011 100% Nashville, TN 339,000 International Market Place Saks Fifth Avenue 343,000 2016 93.5% Waikiki, Honolulu, HI 263,000 The Mall of San Juan Nordstrom, Saks Fifth Avenue 626,000 2015 95% San Juan, PR 388,000 The Mall at Short Hills Bloomingdale's, Macy's, 1,453,000 (3) 1980/1994/ 100% Short Hills, NJ Neiman Marcus, Nordstrom 546,000 1995 /2011 Taubman Prestige Outlets Chesterfield Polo Ralph Lauren Factory Store, 299,000 (4) 2013 100% Chesterfield, MO Restoration Hardware Outlet 299,000 (St. Louis Metropolitan Area)

Twelve Oaks Mall JCPenney, Lord & Taylor, Macy's, 1,518,000 1977/1978/ 100% Novi, MI Nordstrom, Sears 549,000 2007/2008 (Detroit Metropolitan Area)

Total GLA 10,550,000 Total Mall GLA 5,238,000 TRG % of Total GLA 9,984,000 TRG % of Total Mall GLA 4,890,000

Unconsolidated Joint Ventures: CityOn.Xi'an Wangfujing 996,000 2016 50% Xi'an, China 694,000 CityOn.Zhengzhou G-Super, Wangfujing 917,000 2017 49% Zhengzhou, China 619,000 Country Club Plaza 1,001,000 (5) 1922/1977/ 2016 50% Kansas City, MO 781,000 2000/2015 Fair Oaks Mall JCPenney, Lord & Taylor, 1,559,000 (6) 1980/1987/ 50% Fairfax, VA Macy's (two locations), Sears 563,000 1988/2000 (Washington, DC Metropolitan Area)

International Plaza Dillard's, Life Time Athletic, Neiman Marcus, Nordstrom 1,253,000 2001/2015 50.1% Tampa, FL 617,000 The Mall at Millenia Bloomingdale’s, Macy's, Neiman Marcus 1,122,000 2002 50% Orlando, FL 522,000 Stamford Town Center Macy's, Saks Off 5th 761,000 1982/2007 50% Stamford, CT 438,000 Starfield Hanam PK Market, Shinsegae, Traders 1,701,000 2016 34.3% Hanam, South Korea 971,000 Sunvalley JCPenney, Macy's (two locations), Sears 1,320,000 1967/1981 2002 50% Concord, CA 481,000 (San Francisco Metropolitan Area)

The Mall at University Town Center Dillard's, Macy's, Saks Fifth Avenue 861,000 2014 50% Sarasota, FL 440,000 Waterside Shops Nordstrom, Saks Fifth Avenue 341,000 1992/2006/ 2003 50% Naples, FL 201,000 2008 Westfarms JCPenney, Lord & Taylor, Macy's (two locations), Nordstrom 1,271,000 1974/1983/ 79% West Hartford, CT 501,000 1997 Total GLA 13,103,000 Total Mall GLA 6,828,000 TRG % of Total GLA 6,645,000 TRG % of Total Mall GLA 3,401,000 Grand Total GLA 23,653,000 Grand Total Mall GLA 12,066,000 TRG % of Total GLA 16,629,000 TRG % of Total Mall GLA 8,291,000

(1) GLA includes the former Neiman Marcus-Last Call store, which closed in January 2018.

(2) GLA does not reflect the incremental GLA to be added in connection with the redevelopment project currently ongoing at the center.

(3) GLA includes the former Saks Fifth Avenue store, which closed in September 2016. This space is currently under redevelopment.

(4) The Company entered into a redevelopment agreement with The Staenberg Group (TSG) for this property. TSG will purchase the building and improvements and ground lease the land in order to redevelop the property.

(5) GLA includes 220,000 square feet of office property.

(6) GLA includes approximately 100,000 square feet of GLA related to the second level of the Sears space which was vacated in the fourth quarter of 2016.

Q118 Supplemental

14

RedevelopmentsAs of March 31, 2018

Center NameIncremental

GLA (1)Completion

Date (1)Anticipated

Investment (1)Capitalized

Cost-To-Date

ExpectedAfter-TaxReturn at

Stabilization(1)

Project with Incremental GLA

The Mall at Green Hills - Nashville, TN 170,000 sq. ft. 2019 $200 million $110.7 million 6.5%-7.5%

Renovation and expansion

Project with no Incremental GLA

Beverly Center - Los Angeles, CA N/A Holiday 2018 $500 million (2) $315.5 million 3%-4% (3)

Renovation

(1) Anticipated completion date, incremental GLA, anticipated investment, and stabilized returns for redevelopments are subject to adjustment as a result of factors inherentin the redevelopment process, some of which may not be under the direct control of the Company. Refer to the Company's filings with the Securities and Exchange Commissionon Form 10-K and Form 10-Q for other risk factors.

(2) Approximately 20% of the anticipated cost relates to deferred and prospective customary capital upgrades and improvements.

(3) Projected returns are calculated using the cash flow differential between two scenarios; a full renovation and a non-renovation scenario. The Company is also expecting a10-year unlevered IRR in excess of 10% on the project, using a terminal year of 2025.

Q118 Supplemental

15

Anchors in Owned PortfolioAs of March 31, 2018

(Excludes Value and Outlet Centers; GLA in thousands of square feet)

Number

Name of Stores GLA % of GLA

Macy's

Bloomingdale's (1) 3 641

Macy's 12 2,539

Macy's Men's Store/Furniture Gallery 3 489

18 3,669 17.8%

Nordstrom 9 1,302 6.3%

Hudson's Bay Company

Lord & Taylor (2) 3 392

Saks Fifth Avenue 5 375

Saks Off 5th (3) 1 78

9 845 4.1%

JCPenney 4 745 3.6%

Dillard's 3 607 (4) 3.0%

Sears 3 569 (5) 2.8%

Wangfujing 2 565 2.7%

Shinsegae

PK Market 1 63

Shinsegae 1 485

2 548 2.7%

Neiman Marcus (6) 4 402 2.0%

Traders 1 183 0.9%

Life Time Athletic 1 56 0.3%

G-Super 1 36 0.2%

Total 57 9,527 46.3% (7)

Major Tenants in Owned PortfolioAs of March 31, 2018

TenantNumberof Stores

SquareFootage

% MallGLA

Forever 21 (Forever 21, XXI Forever) 17 513,277 4.3%

H&M 21 420,946 3.5%

The Gap (Gap, Gap Kids, Baby Gap, Banana Republic, Old Navy, Athleta, and others) 49 417,860 3.5%

Limited Brands (Bath & Body Works/White Barn Candle, Pink, Victoria's Secret, and others) 40 272,383 2.3%

Urban Outfitters (Anthropologie, Free People, Urban Outfitters) 28 219,985 1.8%

Williams-Sonoma (Williams-Sonoma, Pottery Barn, Pottery Barn Kids, and others) 27 217,493 1.8%

Ascena Retail Group (Ann Taylor, Ann Taylor Loft, Justice, and others) 42 209,757 1.7%

Abercrombie & Fitch (Abercrombie & Fitch, Hollister, and others) 26 193,366 1.6%

Inditex (Zara, Zara Home, Massimo Dutti, Bershka, and others) 19 180,989 1.5%

Foot Locker (Foot Locker, Lady Foot Locker, Champs Sports, Foot Action USA, and others) 36 172,561 1.4%

(1) Excludes one Bloomingdale's Outlet store at a value center.

(2) Excludes one Lord & Taylor Outlet store at an outlet center.

(3) Excludes two Saks Off 5th stores at value and outlet centers.

(4) GLA reflects the opening of the new Dillard's store at The Mall at Green Hills in March 2017 in connection with the redevelopment project currently ongoing at the center.

(5) Excludes the GLA related to the second level of the Sears space at Fair Oaks Mall, which was vacated in the fourth quarter of 2016.

(6) Excludes one Neiman Marcus-Last Call store at a value and outlet center.

(7) Percentages may not add due to rounding.

Q118 Supplemental

16

Components of Other Income, Other Operating Expense, and Nonoperating Income (Expense)For the Three Months Ended March 31, 2018 and 2017(in thousands of dollars)

Three Months Ended March 31, 2018 Three Months Ended March 31, 2017


at 100%


at 100%


at 100%


at 100%

Other Income

Shopping center and other operational revenues 10,820 6,611 7,644 3,191

Lease cancellation income 8,900 4,885 632 3,074

19,720 11,496 8,276 6,265

Other Operating Expense

Shopping center and other operational expenses 15,089 8,182 12,312 9,200

Provision for tenant bad debts 3,913 1,633 2,890 1,359

Domestic and non-U.S. pre-development costs 1,160 1,021

Ground rent 3,704 171 3,096 844

23,866 9,986 19,319 11,403

Nonoperating Income (Expense)

Insurance recoveries - The Mall of San Juan 670

Fluctuation in fair value of SPG common shares investment (10,262)

Gain on sale of peripheral land 1,668

Dividend income 1,151 1,033

Interest income 1,273 347 1,849 183

Other nonoperating income (expense) 25 (103)

(7,143) 347 2,779 1,851

Three Months Ended March 31, 2018 Three Months Ended March 31, 2017


at TRG%


at TRG%


at TRG%


at TRG%

Other Income

Shopping center and other operational revenues 7,745 2,899 5,871 1,638

Lease cancellation income 8,770 2,448 662 1,538

16,515 5,347 6,533 3,176

Other Operating Expense

Shopping center and other operational expenses 11,783 3,731 10,927 3,832

Provision for tenant bad debts 3,748 832 2,754 724

Domestic and non-U.S. pre-development costs 1,160 1,021

Ground rent 3,354 86 2,811 422

20,045 4,649 17,513 4,978

Nonoperating Income (Expense)

Insurance recoveries - The Mall of San Juan 637

Fluctuation in fair value of SPG common shares investment (10,262)

Gain on sale of peripheral land 1,008

Dividend income 1,151 1,033

Interest income 1,242 154 1,826 92

Other nonoperating income (expense) 24 (102)

(7,208) 154 2,757 1,100

Q118 Supplemental

17

Use of Non-GAAP Financial Measures

Within this supplemental information package, the Company uses certain non-GAAP operating measures, including EBITDA, beneficial interest in EBITDA,EBITDA for real estate (EBITDAre), Net Operating Income, and Funds from Operations. These measures are reconciled to the most comparable GAAPmeasures. Additional information as to the use of these measures are as follows.

EBITDA represents earnings before interest, income taxes, and depreciation and amortization of the Operating Partnership's consolidated andunconsolidated businesses. Beneficial interest in EBITDA represents the Operating Partnership’s share of the earnings before interest, income taxes, anddepreciation and amortization of its consolidated and unconsolidated businesses. The National Association of Real Estate Investment Trusts (NAREIT)defines EBITDAre as earnings before interest, income taxes, depreciation and amortization, plus or minus losses and gains on disposition of depreciatedproperty, including losses/gains on change of control, plus impairment write-downs of depreciated property and of investments in unconsolidated affiliatescaused by a decrease in value of depreciated property in the affiliate, of the Operating Partnership's consolidated businesses plus the OperatingPartnership’s share of its unconsolidated businesses. The Company believes EBITDA, beneficial interest in EBITDA, and EBITDAre provide useful indicatorsof operating performance, as it is customary in the real estate and shopping center business to evaluate the performance of properties on a basis unaffectedby capital structure.

The Company uses Net Operating Income (NOI) as an alternative measure to evaluate the operating performance of centers, both on individual andstabilized portfolio bases, and in formulating corporate goals and compensation. The Company defines NOI as property-level operating revenues (includesrental income excluding straight-line adjustments of minimum rent) less maintenance, taxes, utilities, promotion, ground rent (including straight-lineadjustments), and other property operating expenses. Since NOI excludes general and administrative expenses, pre-development charges, interest incomeand expense, depreciation and amortization, impairment charges, restructuring charges, and gains from peripheral land and property dispositions, itprovides a performance measure that, when compared period over period, reflects the revenues and expenses most directly associated with owning andoperating rental properties, as well as the impact on their operations from trends in tenant sales, occupancy and rental rates, and operating costs. TheCompany also uses 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. The Company generally provides separate projections for expected comparable center NOI growth andlease cancellation income. Comparable centers are generally defined as centers that were owned and open for the entire current and preceding periodpresented, excluding centers impacted by significant redevelopment activity. In addition, The Mall of San Juan has been excluded from comparable centerstatistics as a result of Hurricane Maria and the expectation that the center’s performance will be materially impacted for the foreseeable future. Finally,Taubman Prestige Outlets Chesterfield has also been excluded from comparable center statistics as a result of the expected redevelopment of the centerby The Staenberg Group.

NAREIT defines Funds from Operations (FFO) as net income (computed in accordance with Generally Accepted Accounting Principles (GAAP)), excludinggains (or losses) from extraordinary items and sales of properties and impairment write-downs of depreciable real estate, plus real estate relateddepreciation and after adjustments for unconsolidated partnerships and joint ventures. The Company believes that FFO is a useful supplemental measureof operating performance for REITs. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishespredictably over time. Since real estate values instead have historically risen or fallen with market conditions, the Company and most industry investorsand analysts have considered presentations of operating results that exclude historical cost depreciation to be useful in evaluating the operatingperformance of REITs. The Company primarily uses FFO in measuring performance and in formulating corporate goals and compensation.

The Company may also present adjusted versions of NOI, beneficial interest in EBITDA, and FFO when used by management to evaluate operatingperformance when certain significant items have impacted results that affect comparability with prior or future periods due to the nature or amounts ofthese items. The Company believes the disclosure of the adjusted items is similarly useful to investors and others to understand management's view oncomparability of such measures between periods. For the three months ended March 31, 2018, FFO and EBITDA were adjusted to exclude a reductionof a previously expensed restructuring charge, costs incurred associated with shareowner activism, and the fluctuation in the fair value of the SPG commonshares investment. For the three months ended March 31, 2018, FFO was also adjusted for a charge recognized in connection with the write-off of deferredfinancing costs related to the early payoff of the Company's $475 million unsecured term loan. For the three months ended March 31, 2017, FFO andEBITDA were adjusted to exclude a restructuring charge and costs incurred associated with shareowner activism. For the three months ended March 31,2017, FFO was also adjusted for a charge recognized in connection with the partial write-off of deferred financing costs related to an amendment of theCompany's primary unsecured revolving line of credit in February 2017. For the three months ended March 31, 2017, EBITDA was also adjusted to excludea gain recognized in connection with the sale of the Valencia Place office tower at Country Club Plaza.

These non-GAAP measures as presented by the Company are not necessarily comparable to similarly titled measures used by other REITs due to the factthat not all REITs use the same definitions. These measures should not be considered alternatives to net income or as an indicator of the Company'soperating performance. Additionally, these measures do not represent cash flows from operating, investing, or financing activities as defined by GAAP.

Also within this supplemental information package, the Company provides its beneficial interest in certain financial information of its UnconsolidatedJoint Ventures. This beneficial information is derived as the Company’s ownership interest in the investee multiplied by the specific financial statementitem being presented. Investors are cautioned that deriving the Company’s beneficial interest in this manner may not accurately depict the legal andeconomic implications of holding a non-controlling interest in the investee.

Q118 Supplemental

18

Reconciliation of Net Income Attributable to Taubman Centers, Inc. Common Shareowners to Funds From Operationsand Adjusted Funds From OperationsFor the Three Months Ended March 31, 2018 and 2017

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

2018 2017

DollarsShares/Units

Per Share/Unit Dollars

Shares/Units

Per Share/Unit

Net income attributable to TCO common shareowners - basic 18,590 60,917,235 0.31 17,170 60,555,466 0.28

Add impact of share-based compensation 28 289,142 45 498,290

Net income attributable to TCO common shareowners - diluted 18,618 61,206,377 0.30 17,215 61,053,756 0.28

Add depreciation of TCO's additional basis 1,617 0.03 1,617 0.03

Add TCO's additional income tax expense 3 0.00 100 0.00

Net income attributable to TCO common shareowners, excluding step-up depreciation and additional income tax expense 20,238 61,206,377 0.33 18,932 61,053,756 0.31

Add noncontrolling share of income of TRG 8,279 24,954,658 7,790 24,977,946

Add distributions to participating securities of TRG 599 871,262 571 871,262

Net income attributable to partnership unitholders and participating securities of TRG 29,116 87,032,297 0.33 27,293 86,902,964 0.31

Add (less) depreciation and amortization:

Consolidated businesses at 100% 35,022 0.40 37,711 0.43

Depreciation of TCO's additional basis (1,617) (0.02) (1,617) (0.02)

Noncontrolling partners in consolidated joint ventures (1,852) (0.02) (1,796) (0.02)

Share of Unconsolidated Joint Ventures 17,055 0.20 15,652 0.18

Non-real estate depreciation (1,136) (0.01) (689) (0.01)

Less beneficial share of gain on disposition, net of tax (2,083) (0.02)

Less impact of share-based compensation (28) (0.00) (45) (0.00)

Funds from Operations attributable to partnership unitholders and participating securities of TRG 76,560 87,032,297 0.88 74,426 86,902,964 0.86

TCO's average ownership percentage of TRG - basic (1) 70.9% 70.8%

Funds from Operations attributable to TCO's common shareowners, excluding additional income tax expense (1) 54,311 0.88 52,692 0.86

Less TCO's additional income tax expense (3) (0.00) (100) (0.00)

Funds from Operations attributable to TCO's common shareowners (1) 54,308 0.88 52,592 0.85

Funds from Operations attributable to partnership unitholders and participating securities of TRG 76,560 87,032,297 0.88 74,426 86,902,964 0.86

Restructuring charge (346) (0.00) 1,896 0.02

Costs associated with shareowner activism 3,500 0.04 3,500 0.04

Fluctuation in fair value of SPG common shares investment 10,262 0.12

Write-off of deferred financing costs 382 0.00 413 0.00

Adjusted Funds from Operations attributable to partnership unitholders and participating securities of TRG 90,358 87,032,297 1.04 80,235 86,902,964 0.92

TCO's average ownership percentage of TRG - basic (2) 70.9% 70.8%

Adjusted Funds from Operations attributable to TCO's common shareowners (2) 64,100 1.04 56,805 0.92

(1) For the three months ended March 31, 2018, Funds from Operations attributable to TCO's common shareowners was $53,585 using TCO's diluted average ownershippercentage of TRG of 70.0%. For the three months ended March 31, 2017, Funds from Operations attributable to TCO's common shareowners was $51,761 using TCO's dilutedaverage ownership percentage of TRG of 69.7%.

(2) For the three months ended March 31, 2018, Adjusted Funds from Operations attributable to TCO's common shareowners was $63,245 using TCO's diluted average ownershippercentage of TRG of 70.0%. For the three months ended March 31, 2017, Adjusted Funds from Operations attributable to TCO's common shareowners was $55,909 using TCO'sdiluted average ownership percentage of TRG of 69.7%.

Q118 Supplemental

19

Reconciliation of Net Income to Beneficial Interest in EBITDA and Adjusted Beneficial Interest in EBITDAFor the Periods Ended March 31, 2018 and 2017(in thousands of dollars; amounts attributable to TCO may not recalculate due to rounding)


Net income 34,596 32,759


Consolidated businesses at 100% 35,022 37,711

Noncontrolling partners in consolidated joint ventures (1,852) (1,796)

Share of Unconsolidated Joint Ventures 17,055 15,652

Add (less) interest expense and income tax expense:

Interest expense:

Consolidated businesses at 100% 30,823 25,546

Noncontrolling partners in consolidated joint ventures (3,011) (2,975)

Share of Unconsolidated Joint Ventures 16,751 15,781

Income tax expense:

Consolidated businesses at 100% 184 208

Noncontrolling partners in consolidated joint ventures (50) (31)

Share of Unconsolidated Joint Ventures 710 1,633

Share of income tax expense on disposition 731

Less noncontrolling share of income of consolidated joint ventures (1,344) (1,444)

Beneficial interest in EBITDA 128,884 123,775

TCO's average ownership percentage of TRG - basic 70.9% 70.8%

Beneficial interest in EBITDA attributable to TCO 91,430 87,630

Beneficial interest in EBITDA 128,884 123,775

Add (less):

Restructuring charge (346) 1,896

Costs associated with shareowner activism 3,500 3,500

Fluctuation in the fair value of SPG common shares investment 10,262

Beneficial share of gain on disposition (2,814)

Adjusted Beneficial interest in EBITDA 142,300 126,357

TCO's average ownership percentage of TRG - basic 70.9% 70.8%

Adjusted Beneficial interest in EBITDA attributable to TCO 100,947 89,458

Q118 Supplemental

20

Reconciliation of Net Income to Net Operating Income (NOI)For the Three Months Ended March 31, 2018, 2017, and 2016

(in thousands of dollars)

Three Months Ended Three Months Ended

2018 2017 2017 2016

Net income 34,596 32,759 32,759 44,329


Consolidated businesses at 100% 35,022 37,711 37,711 29,746

Noncontrolling partners in consolidated joint ventures (1,852) (1,796) (1,796) (1,419)

Share of Unconsolidated Joint Ventures 17,055 15,652 15,652 9,335

Add (less) interest expense and income tax expense:

Interest expense:

Consolidated businesses at 100% 30,823 25,546 25,546 19,128

Noncontrolling partners in consolidated joint ventures (3,011) (2,975) (2,975) (1,952)

Share of Unconsolidated Joint Ventures 16,751 15,781 15,781 11,528

Income tax expense:

Consolidated businesses at 100% 184 208 208 302

Noncontrolling partners in consolidated joint ventures (50) (31) (31)

Share of Unconsolidated Joint Ventures 710 1,633 1,633

Share of income tax expense on disposition 731 731

Less noncontrolling share of income of consolidated joint ventures (1,344) (1,444) (1,444) (2,521)

Add EBITDA attributable to noncontrolling partners in consolidated joint ventures 6,257 6,246 6,246 5,892

Less beneficial share of gain on disposition (2,814) (2,814)

EBITDAre 135,141 127,207 127,207 114,368

Add EBITDA attributable to outside partners in Unconsolidated Joint Ventures 51,027 47,863 47,863 30,908

Add beneficial share of gain on disposition 2,814 2,814

EBITDA at 100% 186,168 177,884 177,884 145,276

Add (less) items excluded from shopping center NOI:

General and administrative expenses 8,493 10,751 10,751 11,380

Management, leasing, and development services, net (492) (338) (338) (856)

Restructuring charge (346) 1,896 1,896

Costs associated with shareowner activism 3,500 3,500 3,500

Straight-line of rents (5,487) (1,855) (1,855) (1,114)

Fluctuation in fair value of SPG common shares investment 10,262

Insurance recoveries - The Mall of San Juan (670)

Gain on disposition (4,445) (4,445)

Gains on sales of peripheral land (1,668) (1,668) (403)

Dividend income (1,151) (1,033) (1,033) (944)

Interest income (1,620) (2,032) (2,032) (512)

Other nonoperating expense (income) (25) 103 103 143

Unallocated operating expenses and other 8,121 7,322 7,322 10,028

NOI at 100% - total portfolio 206,753 190,085 190,085 162,998

Less NOI of non-comparable centers (12,800) (1) (12,411) (1) (33,925) (2) (12,650) (3)

NOI at 100% - comparable centers 193,953 177,674 156,160 150,348

NOI - growth % 9.2% 3.9%

NOI at 100% - comparable centers 193,953 177,674 156,160 150,348

Lease cancellation income (11,687) (3,608) (3,608) (1,975)

NOI at 100% - comparable centers excluding lease cancellation income 182,266 174,066 152,552 148,373

NOI at 100% excluding lease cancellation income - growth % 4.7% 2.8%

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

(2) Includes Beverly Center, CityOn.Xi'an, CityOn.Zhengzhou, Country Club Plaza, International Market Place, and Starfield Hanam.

(3) Includes Beverly Center and Country Club Plaza.

Q118 Supplemental

21

Operating Statistics GlossaryAs of March 31, 2018

Statistics are presented at 100% in order to allow for measurement of their performance as a whole, without regard to the Company's ownership interest.Peripheral tenants are excluded from all statistics unless otherwise noted.

Terms:

Gross Leasable Area (GLA) - total gross retail space.

Gross Leasable Occupied Area (GLOA) - total gross occupied retail space.

Net Operating Income (NOI) - property level operating revenues (rental income excluding straight-line adjustments of minimum rent) less maintenance,taxes, utilities, ground rent (including straight-line adjustments), and other property operating expenses for comparable centers.

Retail Merchandising Units (RMUs) - special purpose retail sales units located in common areas leased on a temporary basis by tenants and owned bythe Company.

Temporary In-Line Tenants (TILs) - tenants leasing mall retail space for a period of less than or equal to one year.

Value and Outlet Center Anchors - tenants greater than 20,000 square feet at value and outlet centers.

Statistic Description Includes Excludes

Ending Occupancy GLOA of all centers as of the last day of thereporting period divided by GLA of all centers asof the last day of the reporting period

Value and Outlet CenterAnchors, theaters, and TILs

Regional mall anchors

Leased Space Total percentage of leased GLA of all centers withexecuted leases as of the last day of the reportingperiod

Value and Outlet CenterAnchors, theaters, and TILs

Regional mall anchors

Average Rent psf Annualized minimum rents for the periodassociated with the mall tenants divided by theaverage GLOA for the period associated with themall tenants

All anchors (value and outlet center andregional mall), TILs and RMUs

Opening Rent psf Weighted average of the annual rents psf forspaces opening in the period (12-months trailing)

Tenant renewals, relocations,expansions/downsizings

All anchors (value and outlet center andregional mall),TILs and spaces greaterthan or equal to 10,000 sf

Sq Ft of GLAOpened

Total sq ft of centers’ spaces opening in thereporting period (12-months trailing)



Closing Rent psf Weighted average of the annual rents psf forspaces closing in the period (12-months trailing)



Sq Ft of GLAClosed

Total sq ft of centers’ spaces closing in thereporting period (12-months trailing)



Releasing Spreadpsf

Opening rent psf less closing rent psf (12-monthstrailing)



Mall Tenant Sales Total sales of centers in the reporting period TILs and RMUs All anchors (value and outlet center andregional mall)

Sales psf Total sales of centers in the reporting perioddivided by the associated GLOA

RMUs All anchors (value and outlet center andregional mall),TILs, non-comparablecenters and spaces greater than or equalto 10,000 sf

Occupancy Costsas a % of Sales

The sum of minimum rents, overage rents, CAMrecovery and tax recovery for the period dividedby the reported sales for the same tenant spaces

All anchors (value and outlet center andregional mall) and most peripheraltenants

Growth in NOI Percentage change in Net Operating Income(NOI) for the period over the same period fromthe prior year

ComparableCenters

Centers that were owned and open for the entirecurrent and preceding period presented,excluding centers impacted by significantredevelopment activity. In addition, The Mall ofSan Juan has been excluded from comparablecenter statistics as a result of Hurricane Mariaand the expectation that the center’sperformance will be impacted for theforeseeable future. Finally, Taubman PrestigeOutlets Chesterfield has been excluded fromcomparable center statistics as a result of theexpected redevelopment of the center by TheStaenberg Group. Certain statistics are alsopresented representing all comparable centersas well as U.S. only comparable centers.

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