Taubman Centers Announces Taxable Allocations of 2018 Common and Preferred Share Dividend Distributions

Taubman Centers, Inc. (NYSE: TCO) announced today the tax allocations of the 2018 dividend distributions on its common shares and 6.5% Series J and 6.25% Series K Cumulative Redeemable Preferred Shares.

The 2018 distributions paid with respect to Taubman Centers, Inc. Common Stock (NYSE: TCO/Cusip no. 876664103) are as follows:

Declaration

Date

 

Record

Date

 

Payable

Date

 

Gross

Distribution

 

Ordinary

Dividend

Percent

 

Return of

Capital

Percent

 

Long Term

Capital

Gain

Percent

 

Unrecaptured

Sec. 1250

Capital Gain

Percent

03/02/18 03/15/18 03/30/18 0.65500 56.35856% 42.62125% 1.00221% .01798%
05/31/18 06/15/18 06/29/18 0.65500 56.35856% 42.62125% 1.00221% .01798%
09/06/18 09/17/18 09/28/18 0.65500 56.35856% 42.62125% 1.00221% .01798%
12/06/18 12/17/18 12/31/18 0.65500 56.35856% 42.62125% 1.00221% .01798%
2018 TOTALS PER SHARE 2.62000 56.35856% 42.62125% 1.00221% .01798%

¢ Amounts reported to Direct Share Purchase and Dividend Reinvestment Plan participants will differ due to administrative costs. Participants should refer to their Form 1099, which will be mailed on or before February 15, 2019 and contact Computershare at (888) 877-2889 for further information.

¢ The return of capital percentage on common stock dividends is also reported on the Taubman Website at www.taubman.com, pursuant to U.S. tax basis reporting required under Internal Revenue Code Section 6045B.

¢ The portion of the per share dividends paid in 2018 detailed above as capital gains (long term and unrecaptured Section 1250) are designated as capital gain dividends for tax purposes as required by Internal Revenue Code Section 857(b)(3)(C). The unrecaptured Section 1250 gains are 25% rate gain distributions and the long term capital gains are maximum 20% rate gain distributions but may be eligible for a lower capital gains rate. Please consult your tax advisor.

¢ For 2018, 0.150247% of the ordinary dividend distribution to common shareholders will be allocable as qualified dividends.

¢ For 2018, 99.84975% of the ordinary dividend distribution to common shareholders will be allocable as qualified REIT dividends eligible for a 20% deduction under Internal Revenue Code Section 199A(a). Please consult your tax advisor to determine if you qualify for this deduction.

¢ Taxability of the 2018 common dividend is not indicative of the taxability of future dividends.

The 2018 distributions paid with respect to Taubman Centers, Inc. Series J Preferred Stock (NYSE: TCO PrJ/Cusip no. 876664608) are as follows:

Declaration

Date

 

Record

Date

 

Payable

Date

 

Gross

Distribution

 

Ordinary

Dividend

Percent

 

Return of

Capital

Percent

 

Long Term

Capital

Gain

Percent

 

Unrecaptured

Sec. 1250

Capital Gain

Percent

03/02/18 03/15/18 03/30/18 0.40625 98.22200% 0% 1.74665% .03135%
05/31/18 06/15/18 06/29/18 0.40625 98.22200% 0% 1.74665% .03135%
09/06/18 09/17/18 09/28/18 0.40625 98.22200% 0% 1.74665% .03135%
12/06/18 12/17/18 12/31/18 0.40625 98.22200% 0% 1.74665% .03135%
2018 TOTALS PER SHARE 1.62500 98.22200% 0% 1.74665% .03135%

¢ The portion of the per share dividends paid in 2018 detailed above as capital gains (long term and unrecaptured Section 1250) are designated as capital gain dividends for tax purposes as required by Internal Revenue Code Section 857(b)(3)(C). The unrecaptured Section 1250 gains are 25% rate gain distributions and the long term capital gains are maximum 20% rate gain distributions but may be eligible for a lower capital gains rate. Please consult your tax advisor.

¢ For 2018, 0.15025% of the ordinary dividend distribution to preferred shareholders will be allocable as qualified dividends.

¢ For 2018, 99.84975% of the ordinary dividend distribution to preferred shareholders will be allocable as qualified REIT dividends eligible for a 20% deduction under Internal Revenue Code Section 199A(a). Please consult your tax advisor to determine if you qualify for this deduction.

¢ Taxability of the 2018 dividend to Series J Preferred Stock holders is not indicative of the taxability of future dividends.

The 2018 distributions paid with respect to Taubman Centers, Inc. Series K Preferred Stock (NYSE: TCO PrK/Cusip no. 876664707) are as follows:

Declaration

Date

 

Record

Date

 

Payable

Date

 

Gross

Distribution

 

Ordinary

Dividend

Percent

 

Return of

Capital

Percent

 

Long Term

Capital

Gain

Percent

 

Unrecaptured

Sec. 1250

Capital Gain

Percent

03/02/18 03/15/18 03/30/18 0.390625 98.22200% 0% 1.74665% .03135%
05/31/18 06/15/18 06/29/18 0.390625 98.22200% 0% 1.74665% .03135%
09/06/18 09/17/18 09/28/18 0.390625 98.22200% 0% 1.74665% .03135%
12/06/18 12/17/18 12/31/18 0.390625 98.22200% 0% 1.74665% .03135%
2018 TOTALS PER SHARE 1.562500 98.22200% 0% 1.74665% .03135%

¢ The portion of the per share dividends paid in 2018 detailed above as capital gains (long term and unrecaptured Section 1250) are designated as capital gain dividends for tax purposes as required by Internal Revenue Code Section 857(b)(3)(C). The unrecaptured Section 1250 gains are 25% rate gain distributions and the long term capital gains are maximum 20% rate gain distributions but may be eligible for a lower capital gains rate. Please consult your tax advisor.

¢ For 2018, 0.15025% of the ordinary dividend distribution to preferred shareholders will be allocable as qualified dividends.

¢ For 2018, 99.84975% of the ordinary dividend distribution to preferred shareholders will be allocable as qualified REIT dividends eligible for a 20% deduction under Internal Revenue Code Section 199A(a). Please consult your tax advisor to determine if you qualify for this deduction.

¢ Taxability of the 2018 dividend to Series K Preferred Stock holders is not indicative of the taxability of future dividends.

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. Taubmans U.S.-owned properties are the most productive in the publicly held 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 Taubman Centers, Inc. and/or one or more of a number of separate, affiliated entities. Business is actually conducted by an affiliated entity rather than Taubman Centers, Inc. itself or the named operating platform.

This press release 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, the company assumes 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; challenges with department stores; changes in consumer shopping behavior; the liquidity of real estate investments; the companys 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; competitors gaining economies of scale through M&A and consolidation activity; changes in value of investments in foreign entities; risks related to joint venture properties; insurance costs and coverage; security breaches that could impact the companys information technology, infrastructure or personal data; costs associated with response to technology breaches; the loss of key management personnel; shareholder activism costs and related diversion of management time; terrorist activities; maintaining the companys status as a real estate investment trust; changes in the laws of states, localities, and foreign jurisdictions that may increase taxes on the companys 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.

Mark Godek, Taubman, Director, Tax Compliance, (248) 258-7667
[email protected]