8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (date of earliest event reported): May 2, 2016
TAUBMAN CENTERS, INC.
(Exact Name of Registrant as Specified in its Charter)
Michigan
(State of Other Jurisdiction of Incorporation)
	1-11530	38-2033632
	(Commission File Number)	(I.R.S. Employer Identification No.)
	200 East Long Lake Road, Suite 300, Bloomfield Hills, Michigan	48304-2324
	(Address of Principal Executive Office)	(Zip Code)
	Registrant’s Telephone Number, Including Area Code: (248) 258-6800
	None
	(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2. below):
o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

The information under this caption is furnished by Taubman Centers, Inc. (the "Company") in accordance with Securities and Exchange Commission Release No. 33-8216. This information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

On May 2, 2016, the Company issued a press release announcing its results of operations for the quarter ended March 31, 2016. A copy of the press release is attached as Exhibit 99 to this report.

Item 9.01.    FINANCIAL STATEMENTS AND EXHIBITS.

(d)    Exhibits

Exhibit	Description
99	Press Release, dated May 2, 2016, entitled “Taubman Centers, Inc. Issues Strong First Quarter Results.”

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: May 2, 2016	TAUBMAN CENTERS, INC.
	By:	/s/ Simon J. Leopold
		Simon J. Leopold
		Chief Financial Officer

EXHIBIT INDEX

Exhibit	Description
99	Press Release, dated May 2, 2016, entitled “Taubman Centers, Inc. Issues Strong First Quarter Results.”

EX-99

Exhibit 99

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

TAUBMAN CENTERS, INC. ISSUES STRONG FIRST QUARTER RESULTS

• Comparable Center Net Operating Income (NOI), Excluding Lease Cancellation Income, Up 5.8 Percent

• Occupancy, Leased Space, and Average Rent Per Square Foot All Higher

• Releasing Spreads of 25.2 Percent

• CityOn.Xi’an About 95 Percent Leased and 80 Percent Occupied

• Acquisition of 50 Percent Interest in Country Club Plaza Completed

• 2016 FFO Guidance Increased

BLOOMFIELD HILLS, Mich., May 2, 2016 - - Taubman Centers, Inc. (NYSE: TCO) today reported financial results for the first quarter of 2016.

	March 31, 2016 Three Months Ended	March 31, 2015 Three Months Ended
Net income attributable to common shareowners per diluted share (EPS)	$0.41	$0.47
Funds from Operations (FFO) per diluted common share Growth rate	$0.84 3.7%	$0.81

“Our strong results this quarter, driven by increased rents, were consistent with our expectations,” said Robert S. Taubman, chairman, president and chief executive officer of Taubman Centers. “During the quarter we also completed the acquisition of a 50 percent interest in Country Club Plaza in Kansas City, Missouri.”

Operating Statistics

For the quarter, comparable center NOI excluding lease cancellation income was up 5.8 percent. “Our core portfolio of dominant, high-quality assets delivered excellent growth due to increased occupancy and higher rent per square foot,” said Mr. Taubman.

Ending occupancy in comparable centers was 93.2 percent on March 31, 2016, up 0.8 percent from March 31, 2015. Leased space in comparable centers was 95.9 percent on March 31, 2016, up 0.4 percent from March 31, 2015.

Average rent per square foot for the quarter was $60.80, up 2.7 percent from $59.21 in the comparable period last year. Trailing 12-month releasing spreads per square foot for the period ended March 31, 2016 were 25.2 percent.

Trailing 12-month mall tenant sales per square foot decreased a modest 0.3 percent to $790 at March 31, 2016. For the quarter, mall tenant sales per square foot were down 2.9 percent compared to the first quarter of 2015. “The majority of our centers reported increases in the quarter, but tourist oriented centers were impacted by the strong dollar, especially in South Florida,” said Mr. Taubman.

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CityOn.Xi’an Opened, Ownership Increased

On April 28, the company held the grand opening of CityOn.Xi’an (Xi’an, China). The one million square foot shopping center is located in the heart of Xi’an’s new central business district. The center opened about 95 percent leased and approximately 80 percent occupied. “This is an outstanding center, delivered on time and on budget. It’s our first ground up development in China and we’re delighted to have created an asset of this quality,” said Mr. Taubman. See Taubman Asia and Wangfujing Celebrate CityOn.Xi’an Shopping Center Grand Opening Today - April 28, 2016.

In April, Taubman Asia’s joint venture with Wangfujing Group Co. that owned 60 percent of the center effectively acquired the other 40 percent interest from Fuli Group, subject to administrative approvals. As a result, both Taubman Asia and Wangfujing each own 50 percent of the center. The company’s share of the approximately $150 million purchase price was $75 million. “We’re extremely confident in the future of CityOn.Xi’an, and are pleased to have the opportunity to increase our ownership at this moment in time,” said Mr. Taubman.

Acquisition of 50 Percent Interest in Country Club Plaza Completed

Also in March, the company completed the previously announced purchase of Country Club Plaza. Taubman and The Macerich Company each own a 50 percent interest in the center. Total consideration for the mixed-use retail and office property, excluding transaction costs, was $660 million in cash. The company’s share was $330 million. A portion of the purchase price was later financed (see Financing Activity below). See Taubman and Macerich Complete Purchase of Country Club Plaza - March 1, 2016.

Beverly Center Re-Imagination Unveiled

In March, the company announced plans for a $500 million re-imagination of Beverly Center (Los Angeles, Calif.), one of its most strategic and highest performing assets. The comprehensive renovation will touch every aspect of the center by holiday 2018. The company expects that after the renovation Beverly Center will become one of the top ten highest productivity malls in the United States. See Taubman Unveils Plans for a $500 Million Re-Imagination of the Iconic Beverly Center - March 7, 2016.

Financing Activity

In April, the company repaid the $82 million mortgage loan on The Gardens on El Paseo (Palm Desert, Calif.). The asset is now unencumbered.

Also in April, at Waterside Shops (Naples, Fla.), the company’s joint venture completed a $165 million, 10-year, non-recourse refinancing. The loan bears interest at an all-in fixed rate of 3.89 percent. Proceeds were used to extinguish the existing $165 million loan.

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In March, the company’s joint venture completed a $320 million, 10-year, non-recourse financing on its 50 percent owned Country Club Plaza. The loan bears interest at an all-in fixed rate of 3.88 percent and is interest-only for the first three years with 30-year principal amortization thereafter.

Dividend Increased

In March, the company declared a regular quarterly dividend of $0.595 per share of common stock, an increase of 5.3 percent. Since the company went public in 1992 it has never reduced its common dividend and has increased its dividend 19 times, achieving a 4.4 percent compounded annual growth rate over the period. See Taubman Centers Increases Quarterly Common Dividend 5.3 Percent to $0.595 Per Share - March 3, 2016.

2016 Guidance

The company is increasing its guidance range for 2016 FFO per diluted common share to $3.75 to $3.95, up from the previous range of $3.45 to $3.65. This guidance now includes net service fee income of $2 to $2.5 million for the year, and a payment to the company of approximately $21 million, expected to be received in the second quarter. These are both due to the termination of the company’s leasing services agreement at The Shops at Crystals (Las Vegas, Nev.). It also includes the positive impact of Country Club Plaza and assumes comparable center NOI growth, excluding lease cancellation income, of about 5 percent for the year.

After adjusting for the one-time $21 million payment, the company’s guidance range for 2016 Adjusted FFO per diluted share is $3.50 to $3.70.

The company is also increasing its guidance range for 2016 EPS to $1.85 to $2.10, up from a range of $1.55 to $1.80.

Supplemental Investor Information Available

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

• Company Information

• Income Statement

• Earnings Reconciliations

• Changes in Funds from Operations and Earnings Per Common Share

• Components of Other Income, Other Operating Expense and Net Nonoperating Income

• Recoveries Ratio Analysis

• Balance Sheets

• Debt Summary

• Other Debt, Equity and Certain Balance Sheet Information

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• Construction, Redevelopments and Acquisition

• Capital Spending

• Operational Statistics

• Summary of Key Guidance Measures

• Owned Centers

• Major Tenants in Owned Portfolio

• Anchors in Owned Portfolio

• Operating Statistics Glossary

Investor Conference Call

The company will host a conference call at 11:00 a.m. EDT on Tuesday, May 3 to discuss these results, business conditions and the company’s outlook for the remainder of 2016. The conference call will be simulcast at www.taubman.com. An online replay will follow shortly after the 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 24 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 publicly held U.S. regional mall industry. Taubman is currently developing three properties in the U.S. and Asia totaling 3.1 million square feet. 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 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.

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This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements reflect management's current views with respect to future events and financial performance. 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 release that predict or indicate future events and trends and that do not report historical matters. The forward-looking statements included in this release are made as of the date hereof. Except as required by law, we assume no obligation to update these forward-looking statements, even if new information becomes available in the future. Actual results may differ materially from those expected because of various risks, uncertainties and other factors. Such factors include, but are not limited to: changes in market rental rates; unscheduled closings or bankruptcies of tenants; relationships with anchor tenants; trends in the retail industry; 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 investments in foreign entities; the ability to hedge interest rate and currency risk; risks related to acquiring, developing, expanding, leasing and managing properties; changes in value of investments in foreign entities; risks related to joint venture properties; insurance costs and coverage; security breaches that could impact the company’s information technology, infrastructure or personal data; the loss of key management personnel; terrorist activities; maintaining the company’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; and changes in global, national, regional and/or local economic and geopolitical climates. You should review the company's filings with the Securities and Exchange Commission, including “Risk Factors” in its most recent Annual Report on Form 10-K and subsequent quarterly reports, for a discussion of such risks and uncertainties.

CONTACTS:

Ryan Hurren, Taubman, Director, Investor Relations, 248-258-7232

rhurren@taubman.com

Maria Mainville, Taubman, Director, Strategic Communications, 248-258-7469

mmainville@taubman.com

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TAUBMAN CENTERS, INC.
Table 1 - Summary of Results
For the Periods Ended March 31, 2016 and 2015
(in thousands of dollars, except as indicated)
	Three Months Ended
	2016		2015
Net income	44,329		51,000
Noncontrolling share of income of consolidated joint ventures	(2,521	)	(2,591	)
Noncontrolling share of income of TRG	(10,899	)	(12,511	)
Distributions to participating securities of TRG	(512	)	(492	)
Preferred stock dividends	(5,784	)	(5,784	)
Net income attributable to Taubman Centers, Inc. common shareowners	24,613		29,622
Net income per common share - basic	0.41		0.47
Net income per common share - diluted	0.41		0.47
Beneficial interest in EBITDA - Combined (1)	108,476		103,506
Funds from Operations attributable to partnership unitholders and participating securities of TRG (1)	73,024		72,916
Funds from Operations attributable to TCO's common shareowners (1)	51,597		51,970
Funds from Operations per common share - basic (1)	0.86		0.82
Funds from Operations per common share - diluted (1)	0.84		0.81
Weighted average number of common shares outstanding - basic	60,275,004		63,039,777
Weighted average number of common shares outstanding - diluted	60,791,001		63,935,280
Common shares outstanding at end of period	60,342,914		62,307,024
Weighted average units - Operating Partnership - basic	85,337,163		88,143,888
Weighted average units - Operating Partnership - diluted	86,724,422		89,910,652
Units outstanding at end of period - Operating Partnership	85,405,073		87,370,413
Ownership percentage of the Operating Partnership at end of period	70.7	%	71.3	%
Number of owned shopping centers at end of period	20		19
Operating Statistics:
Net Operating Income excluding lease cancellation income - growth % (1)(2)	5.8	%	3.7	%
Net Operating Income including lease cancellation income - growth % (1)(2)	4.2	%	5.3	%
Average rent per square foot - Consolidated Businesses (2)	63.50		60.45
Average rent per square foot - Unconsolidated Joint Ventures (2)	57.85		57.83
Average rent per square foot - Combined (2)	60.80		59.21
Average rent per square foot growth (2)	2.7	%
Ending occupancy - all centers	92.5	%	89.8	%
Ending occupancy - comparable (2)	93.2	%	92.4	%
Leased space - all centers	95.1	%	93.7	%
Leased space - comparable (2)	95.9	%	95.5	%
Mall tenant sales - all centers (3)	1,202,268		1,175,757
Mall tenant sales - comparable (2)(3)	1,096,483		1,100,575
	Twelve Months Trailing
	2016		2015
Operating Statistics:
Mall tenant sales - all centers (3)	5,204,499		5,027,722
Mall tenant sales - comparable (2)(3)	4,601,778		4,606,444
Sales per square foot (2)(3)	790		792
All centers (3):
Mall tenant occupancy costs as a percentage of tenant sales - Consolidated Businesses	14.4	%	14.0	%
Mall tenant occupancy costs as a percentage of tenant sales - Unconsolidated Joint Ventures	13.9	%	13.2	%
Mall tenant occupancy costs as a percentage of tenant sales - Combined	14.2	%	13.7	%
Comparable centers (2)(3):
Mall tenant occupancy costs as a percentage of tenant sales - Consolidated Businesses	14.0	%	13.6	%
Mall tenant occupancy costs as a percentage of tenant sales - Unconsolidated Joint Ventures	14.0	%	13.4	%
Mall tenant occupancy costs as a percentage of tenant sales - Combined	14.0	%	13.5	%

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(1)	Beneficial interest in EBITDA represents the Operating Partnership’s share of the earnings before interest, income taxes, and depreciation and amortization of its consolidated and unconsolidated businesses. The Company believes beneficial interest in EBITDA provides a useful indicator of operating performance, as it is customary in the real estate and shopping center business to evaluate the performance of properties on a basis unaffected by capital structure.
	The Company uses Net Operating Income (NOI) as an alternative measure to evaluate the operating performance of centers, both on individual and stabilized portfolio bases. The Company defines NOI as property-level operating revenues (includes rental income excluding straight-line adjustments of minimum rent) less maintenance, taxes, utilities, promotion, ground rent (including straight-line adjustments), and other property operating expenses. 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. The Company 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 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.
	The National Association of Real Estate Investment Trusts (NAREIT) defines Funds from Operations (FFO) as net income (computed in accordance with Generally Accepted Accounting Principles (GAAP)), excluding gains (or losses) from extraordinary items and sales of properties and impairment write-downs of depreciable real estate, plus real estate related depreciation and after adjustments for unconsolidated partnerships and joint ventures. The Company believes that FFO is a useful supplemental measure of operating performance for REITs. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, the Company and most industry investors and analysts have considered presentations of operating results that exclude historical cost depreciation to be useful in evaluating the operating performance of REITs. 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 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. The Company believes 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.
	These non-GAAP measures as presented by the Company are not necessarily comparable to similarly titled measures used by other REITs due to the fact that not all REITs use the same definitions. These measures should not be considered alternatives to net income or as an indicator of the Company's operating performance. Additionally, these measures do not represent cash flows from operating, investing, or financing activities as defined by GAAP.
(2)	Statistics exclude non-comparable centers for all periods presented. The March 31, 2015 statistics have been restated to include comparable centers to 2016. The Mall at University Town Center has been excluded from comparable trailing 12-month statistics reported for 2016 and 2015 as the center was not open for the entire 12 months ended March 31, 2015. Sales per square foot exclude spaces greater than or equal to 10,000 square feet.
(3)	Based on reports of sales furnished by mall tenants.

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TAUBMAN CENTERS, INC.
Table 2 - Income Statement
For the Three Months Ended March 31, 2016 and 2015
(in thousands of dollars)
				2016				2015
				CONSOLIDATED BUSINESSES		UNCONSOLIDATED JOINT VENTURES (1)		CONSOLIDATED BUSINESSES		UNCONSOLIDATED JOINT VENTURES (1)
REVENUES:
		Minimum rents		81,977		57,563		74,567		52,709
		Percentage rents		2,772		2,032		2,930		2,247
		Expense recoveries		47,760		34,372		43,912		31,557
		Management, leasing, and development services		1,728				2,957
		Other		5,218		2,796		4,623		5,401
			Total revenues	139,455		96,763		128,989		91,914
EXPENSES:
		Maintenance, taxes, utilities, and promotion		34,938		23,356		31,633		21,499
		Other operating		18,708		3,404		13,218		5,430
		Management, leasing, and development services		872				1,130
		General and administrative		11,380				11,925
		Interest expense		19,128		21,333		13,525		20,966
		Depreciation and amortization		29,746		16,006		24,041		13,499
			Total expenses	114,772		64,099		95,472		61,394
Nonoperating income, net				1,470		246		1,246		8
				26,153		32,910		34,763		30,528
Income tax expense				(302	)			(838	)
Equity in income of Unconsolidated Joint Ventures				18,478				17,075
Net income				44,329				51,000
Net income attributable to noncontrolling interests:
		Noncontrolling share of income of consolidated joint ventures		(2,521	)			(2,591	)
		Noncontrolling share of income of TRG		(10,899	)			(12,511	)
Distributions to participating securities of TRG				(512	)			(492	)
Preferred stock dividends				(5,784	)			(5,784	)
Net income attributable to Taubman Centers, Inc. common shareowners				24,613				29,622
SUPPLEMENTAL INFORMATION:
		EBITDA - 100%		75,027		70,249		72,329		64,993
		EBITDA - outside partners' share		(5,892	)	(30,908	)	(5,329	)	(28,487	)
		Beneficial interest in EBITDA		69,135		39,341		67,000		36,506
		Beneficial interest expense		(17,176	)	(11,528	)	(11,871	)	(11,363	)
		Beneficial income tax expense - TRG and TCO		(302	)			(838	)
		Beneficial income tax expense (benefit) - TCO		(19	)			179
		Non-real estate depreciation		(643	)			(913	)
		Preferred dividends and distributions		(5,784	)			(5,784	)
		Funds from Operations attributable to partnership unitholders and participating securities of TRG		45,211		27,813		47,773		25,143
STRAIGHTLINE AND PURCHASE ACCOUNTING ADJUSTMENTS:
		Net straight-line adjustments to rental revenue, recoveries, and ground rent expense at TRG%		13		457		(257	)	393
		The Mall at Green Hills purchase accounting adjustments - minimum rents increase		60				93
		El Paseo Village and The Gardens on El Paseo purchase accounting
			adjustments - interest expense reduction	285				306
		Waterside Shops purchase accounting adjustments - interest expense reduction				263				263
(1	)	With the exception of the Supplemental Information, amounts include 100% of the Unconsolidated Joint Ventures. Amounts are net of intercompany transactions. The Unconsolidated Joint Ventures are presented at 100% in order to allow for measurement of their performance as a whole, without regard to the Company's ownership interest.

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TAUBMAN CENTERS, INC.
Table 3 - Reconciliation of Net Income Attributable to Taubman Centers, Inc. Common Shareowners to Funds from Operations
For the Three Months Ended March 31, 2016 and 2015
(in thousands of dollars except as noted; may not add or recalculate due to rounding)
			2016					2015
					Shares	Per Share				Shares	Per Share
			Dollars		/Units	/Unit		Dollars		/Units	/Unit
Net income attributable to TCO common shareowners - Basic			24,613		60,275,004	0.41		29,622		63,039,777	0.47
Add impact of share-based compensation			66		515,997			125		895,503
Net income attributable to TCO common shareowners - Diluted			24,679		60,791,001	0.41		29,747		63,935,280	0.47
Add depreciation of TCO's additional basis			1,617			0.03		1,617			0.03
Add (less) TCO's additional income tax expense (benefit)			(19	)		(0.00	)	179			0.00
Net income attributable to TCO common shareowners,
		excluding step-up depreciation and additional income tax expense (benefit)	26,277		60,791,001	0.43		31,543		63,935,280	0.49
Add noncontrolling share of income of TRG			10,899		25,062,159			12,511		25,104,110
Add distributions to participating securities of TRG			512		871,262			492		871,262
Net income attributable to partnership unitholders
		and participating securities of TRG	37,688		86,724,422	0.43		44,546		89,910,652	0.50
Add (less) depreciation and amortization:
		Consolidated businesses at 100%	29,746			0.34		24,041			0.27
		Depreciation of TCO's additional basis	(1,617	)		(0.02	)	(1,617	)		(0.02	)
		Noncontrolling partners in consolidated joint ventures	(1,419	)		(0.02	)	(1,084	)		(0.01	)
		Share of Unconsolidated Joint Ventures	9,335			0.11		8,068			0.09
		Non-real estate depreciation	(643	)		(0.01	)	(913	)		(0.01	)
Less impact of share-based compensation			(66	)		(0.00	)	(125	)		(0.00	)
Funds from Operations attributable to partnership unitholders
		and participating securities of TRG	73,024		86,724,422	0.84		72,916		89,910,652	0.81
TCO's average ownership percentage of TRG - basic (1)			70.6	%				71.5	%
Funds from Operations attributable to TCO's common shareowners,
		excluding additional income tax benefit (expense) (1)	51,578			0.84		52,149			0.81
Add (less) TCO's additional income tax benefit (expense)			19			0.00		(179	)		(0.00	)
Funds from Operations attributable to TCO's common shareowners (1)			51,597			0.84		51,970			0.81
(1	)	For the three months ended March 31, 2016, Funds from Operations attributable to TCO's common shareowners was $50,772 using TCO's diluted average ownership percentage of TRG of 69.5%. For the three months ended March 31, 2015, Funds from Operations attributable to TCO's common shareowners was $50,945 using TCO's diluted average ownership percentage of TRG of 70.1%.

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TAUBMAN CENTERS, INC.
Table 4 - Reconciliation of Net Income to Beneficial Interest in EBITDA
For the Periods Ended March 31, 2016 and 2015
(in thousands of dollars; amounts attributable to TCO may not recalculate due to rounding)
			Three Months Ended
			2016		2015
Net income			44,329		51,000
Add (less) depreciation and amortization:
	Consolidated businesses at 100%		29,746		24,041
	Noncontrolling partners in consolidated joint ventures		(1,419	)	(1,084	)
	Share of Unconsolidated Joint Ventures		9,335		8,068
Add (less) interest expense and income tax expense:
	Interest expense:
		Consolidated businesses at 100%	19,128		13,525
		Noncontrolling partners in consolidated joint ventures	(1,952	)	(1,654	)
		Share of Unconsolidated Joint Ventures	11,528		11,363
	Income tax expense		302		838
Less noncontrolling share of income of consolidated joint ventures			(2,521	)	(2,591	)
Beneficial interest in EBITDA			108,476		103,506
TCO's average ownership percentage of TRG - basic			70.6	%	71.5	%
Beneficial interest in EBITDA attributable to TCO			76,618		74,027

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TAUBMAN CENTERS, INC.
Table 5 - Reconciliation of Net Income to Net Operating Income (NOI)
For the Periods Ended March 31, 2016, 2015, and 2014
(in thousands of dollars)
				Three Months Ended						Three Months Ended
				2016			2015			2015			2014
Net income				44,329			51,000			51,000			526,157
Add (less) depreciation and amortization:
		Consolidated businesses at 100%		29,746			24,041			24,041			35,118
		Noncontrolling partners in consolidated joint ventures		(1,419	)		(1,084	)		(1,084	)		(1,161	)
		Share of Unconsolidated Joint Ventures		9,335			8,068			8,068			7,178
Add (less) interest expense and income tax expense:
		Interest expense:
			Consolidated businesses at 100%	19,128			13,525			13,525			26,130
			Noncontrolling partners in consolidated joint ventures	(1,952	)		(1,654	)		(1,654	)		(2,064	)
			Share of Unconsolidated Joint Ventures	11,528			11,363			11,363			9,844
		Income tax expense:
			Income tax expense on dispositions of International Plaza, Arizona Mills, and Oyster Bay										10,206
			Other income tax expense	302			838			838			699
Less noncontrolling share of income of consolidated joint ventures				(2,521	)		(2,591	)		(2,591	)		(3,118	)
Add EBITDA attributable to outside partners:
		EBITDA attributable to noncontrolling partners in consolidated joint ventures		5,892			5,329			5,329			6,343
		EBITDA attributable to outside partners in Unconsolidated Joint Ventures		30,908			28,487			28,487			23,207
EBITDA at 100%				145,276			137,322			137,322			638,539
Add (less) items excluded from shopping center NOI:
		General and administrative expenses		11,380			11,925			11,925			11,537
		Management, leasing, and development services, net		(856	)		(1,827	)		(1,827	)		(1,220	)
		Straight-line of rents		(1,114	)		(720	)		(720	)		(1,044	)
		Gain on dispositions											(486,620	)
		Gain on sale of peripheral land		(403	)
		Dividend income		(944	)		(826	)		(826	)		(224	)
		Interest income		(512	)		(666	)		(666	)		(127	)
		Other nonoperating expense (income)		143			238			238			(754	)
		Non-center specific operating expenses and other		10,028			8,558		(1)	4,348			3,748
NOI - all centers at 100%				162,998			154,004			149,794			163,835
Less - NOI of non-comparable centers				(13,881	)	(2)	(10,929	)	(3)	(5,155	)	(4)	(26,471	)	(5)
NOI at 100% - comparable centers				149,117			143,075			144,639			137,364
NOI - growth %				4.2	%					5.3	%
NOI at 100% - comparable centers				149,117			143,075			144,639			137,364
Lease cancellation income				(1,975	)		(3,945	)		(4,082	)		(1,853	)
NOI at 100% - comparable centers excluding lease cancellation income				147,142			139,130			140,557			135,511
NOI at 100% excluding lease cancellation income - growth %				5.8	%					3.7	%
(1	)	In 2016, the Company stopped allocating certain corporate-level operating expenses to the centers to better reflect the performance of the centers without regard to corporate infrastructure. These expenses, which were previously recognized in other operating expenses of the centers, are now recognized in non-center specific other operating expenses.  The 2015 comparable amount of other operating expenses allocated to the centers was $4.2 million at 100%.
(2	)	Includes Beverly Center, Country Club Plaza, and The Mall of San Juan.
(3	)	Includes Beverly Center and The Mall of San Juan.
(4	)	Includes The Mall of San Juan and The Mall at University Town Center.
(5	)	Includes the portfolio of centers sold to Starwood Capital Group (Starwood) and Arizona Mills for the approximately one-month period prior to its disposition. Includes an adjustment to reflect the allocation of costs to Starwood centers that are now being allocated to the remainder of the portfolio.

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TAUBMAN CENTERS, INC.
Table 6 - Balance Sheets
As of March 31, 2016 and December 31, 2015
(in thousands of dollars)
			As of
			March 31, 2016		December 31, 2015
Consolidated Balance Sheet of Taubman Centers, Inc.:
Assets:
	Properties		3,783,129		3,713,215
	Accumulated depreciation and amortization		(1,078,497	)	(1,052,027	)
			2,704,632		2,661,188
	Investment in Unconsolidated Joint Ventures		595,902		433,911
	Cash and cash equivalents		172,918		206,635
	Restricted cash		3,527		6,447
	Accounts and notes receivable, net		52,184		54,547
	Accounts receivable from related parties		2,427		2,478
	Deferred charges and other assets (1)		197,791		181,304
			3,729,381		3,546,510
Liabilities:
	Notes payable, net (1)		2,843,155		2,627,088
	Accounts payable and accrued liabilities		309,523		334,525
	Distributions in excess of investments in and net income of
	Unconsolidated Joint Ventures		468,240		464,086
			3,620,918		3,425,699
Redeemable noncontrolling interest			13,041
Equity:
	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	603		602
		Additional paid-in capital	646,964		652,146
		Accumulated other comprehensive income (loss)	(29,255	)	(27,220	)
		Dividends in excess of net income	(524,240	)	(512,746	)
			94,097		112,807
	Noncontrolling interests:
		Noncontrolling interests in consolidated joint ventures	(21,719	)	(23,569	)
		Noncontrolling interests in partnership equity of TRG	23,044		31,573
			1,325		8,004
			95,422		120,811
			3,729,381		3,546,510
(1)	The December 31, 2015 balance has been restated in connection with the Company's adoption of Accounting Standards Update (ASU) No. 2015-03 "Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs" which changed the presentation of debt issuance costs on the Consolidated Balance Sheet. In connection with the adoption of ASU No. 2015-03 on January 1, 2016, the Company retrospectively reclassified the December 31, 2015 Consolidated Balance Sheet to move $16.9 million of debt issuance costs out of Deferred Charges and Other Assets and into Notes Payable, Net as a direct deduction of the related debt liabilities.
Combined Balance Sheet of Unconsolidated Joint Ventures (1):
Assets:
	Properties		2,284,385		1,628,492
	Accumulated depreciation and amortization		(600,880	)	(589,145	)
			1,683,505		1,039,347
	Cash and cash equivalents		26,384		36,047
	Accounts and notes receivable, net		55,763		42,361
	Deferred charges and other assets (2)		34,467		32,660
			1,800,119		1,150,415
Liabilities:
	Notes payable, net (2)(3)		2,309,146		1,994,298
	Accounts payable and other liabilities		80,571		70,539
			2,389,717		2,064,837
Accumulated Deficiency in Assets:
	Accumulated deficiency in assets - TRG		(342,233	)	(507,282	)
	Accumulated deficiency in assets - Joint Venture Partners		(231,847	)	(397,196	)
	Accumulated other comprehensive loss - TRG		(7,765	)	(4,974	)
	Accumulated other comprehensive loss - Joint Venture Partners		(7,753	)	(4,970	)
			(589,598	)	(914,422	)
			1,800,119		1,150,415
(1)	Unconsolidated Joint Venture amounts exclude the balances of entities that own interests in projects that are currently under development.
(2)	The December 31, 2015 balance has been adjusted in connection with the Company's adoption of ASU No. 2015-03 "Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs."
(3)	The balances presented exclude centers under construction, therefore the Notes Payable, Net amounts exclude the construction financings outstanding for Starfield Hanam of $79.2 million ($27.2 million at TRG's share) and $52.9 million ($18.1 million at TRG's share) as of March 31, 2016 and December 31, 2015, respectively, and CityOn.Zhengzhou of $45.0 million ($14.3 million at TRG's share) and $44.7 million ($14.2 million at TRG's share) as of March 31, 2016 and December 31, 2015, respectively, and the related debt issuance costs.

Taubman Centers/13

TAUBMAN CENTERS, INC.
Table 7 - Annual Guidance
(all dollar amounts per common share on a diluted basis; amounts may not add due to rounding)
	Range for the Year Ended
	December 31, 2016
Adjusted Funds from Operations per common share	3.50		3.70
Crystals lump sum fee for termination of leasing agreement	0.25		0.25
Funds from Operations per common share	3.75		3.95
Real estate depreciation - TRG	(1.78	)	(1.72	)
Distributions to participating securities of TRG	(0.02	)	(0.02	)
Depreciation of TCO's additional basis in TRG	(0.11	)	(0.11	)
Net income attributable to common shareowners, per common share (EPS)	1.85		2.10