Citi Comment On Taubman Centers At Global Property CEO Conference

In a report published by Citi, Taubman Centers TCO presented at Citi's 2011 Global Property CEO Conference.

Citi said that TCO's CEO, Robert Taubman, commented that the positive shift in the economy will allow the company to dive into their previously announced 4-prong growth strategy. “The 4 prongs include US development, outlets, international development, and acquisitions. We value TCO using a combination of AFFO and FFO multiple valuation. For TCO, our valuation methodologies take into consideration the company's balance sheet and high sales productivity regional mall portfolio. This methodology results in a target price of $54. We use a 23x AFFO multiple and a 20x FFO multiple on 2011 AFFO and FFO estimates, a premium to peers given its high sales productivity regional mall portfolio, limited balance sheet risk offset by higher occupancy cost ratios.”

Taubman Centers closed yesterday at $51.77.