BLOOMFIELD HILLS—Taubman Centers, Inc. (NYSE: TCO) on Friday reported financial results for the first quarter of 2012.
“The core growth from our centers is excellent,” said Robert S. Taubman, chairman, president and chief executive officer of Taubman Centers. “An unprecedented nine quarters of double-digit tenant sales increases has created a halo over all the fundamentals of our business. We’re pleased to kick off the new year with such positive momentum.”
Mall tenant sales per square foot at Taubman properties were up 13.3 percent from the first quarter of 2011. This brings the company’s 12-month trailing mall tenant sales per square foot to $659.
Leased space in comparable centers for Taubman’s portfolio was 92.0 percent on March 31, 2012, up 1.5 percent from 90.5 percent on March 31, 2011. Ending occupancy in comparable centers was 89.5 percent on March 31, 2012, up 1.6 percent from 87.9 percent on March 31, 2011. Average rent per square foot for the quarter was $46.14, up from $45.20 in the comparable period last year.
For the quarter, NOI excluding lease cancellation income was up 9.3 percent. “The NOI growth we experienced this quarter is exceptional, one of the largest quarter over quarter increases we have ever seen,” said Taubman. “However, we expect NOI growth to moderate through the year.”
In addition, Taubman announced that City Creek Center, Utah, the centerpiece of a 23-acre mixed-use development in downtown Salt Lake City, opened in late March. Anchored by Nordstrom and Macy’s, it is the only regional shopping center to open in the United States this year. According to the International Council of Shopping Centers, it is the first new enclosed regional shopping center to open in the United States in the last six years. Thousands of visitors attended the grand opening, and traffic at the shopping center continues to be overwhelming, well exceeding initial estimates. “We are thrilled with the response from the Salt Lake City community to this unique and wonderful project,” Taubman said.