Market Overview

Land and Buildings Issues Detailed Presentation Outlining Need for a Refreshed Board at Taubman Centers, Inc.


Land & Buildings Investment Management, LLC (together with its
affiliates, "Land and Buildings") announced today that it has issued a
detailed presentation regarding Taubman Centers, Inc. (NYSE:TCO)
("Taubman," "Taubman Centers" or the "Company") outlining the case for
change at Taubman and the poor performance of the Company. Please visit
for the complete presentation and additional details regarding the

"It is time for shareholders' voices to be heard, for accountability to
be introduced in the Taubman Centers boardroom, and for a clear message
to be sent to the Taubman family that shareholders will no longer
tolerate abysmal corporate governance, misguided operations, lavish
developments and inferior total returns," said Land and Buildings
Founder and Chief Investment Officer, Jonathan Litt. "Taubman continues
to deliver suboptimal value for shareholders with 57% stock
underperformance versus Class A Mall Peers over the last five years. We
believe our two independent and highly-qualified director nominees,
Charles Elson and myself, will bring the fresh perspectives and
objectivity that we believe is currently lacking on the Board and can
help reverse this trend of value destruction."

The presentation titled "Addressing Abysmal Corporate Governance and
Chronic Underperformance at Taubman Centers" outlines what is wrong with
Taubman and why Land and Buildings believes shareholders deserve a Board

  • 57% stock price underperformance compared to Class A Mall Peers
    over the last five years under the leadership of Chairman and CEO
    Bobby Taubman.1
  • Taubman Family's use of "Killer B" dual class share structure to
    gain near absolute control
    has thwarted shareholder efforts to
    effect change at the Company.
  • Abysmal corporate governance with classified, clubby and
    over-tenured Board that has repeatedly ignored shareholder voices.
  • Questionable Independence of Board Members given cobweb of
    interconnections, including Myron Ullman's ties to the Taubman Family
    and recent appointment as Lead Director without having ever been
    elected by shareholders.
  • Loss of $1.7 billion in value creation opportunity due to
    glaring operational deficiencies and prioritizing grand developments
    over low hanging fruit within the Company's existing portfolio where
    EBITDA margins have lagged Class A Mall Peers by 770 bps over the past
    five years.2
  • Destruction of $1 billion in value in the past five years due
    to four ill-conceived developments that have demonstrated a pattern of
    undisciplined capital allocation.3

Land and Buildings believes that Taubman has the potential of 65%
upside to net asset value
(NAV).4 A refreshed Board
can help correct the course of Taubman and drive strong shareholder
value creation through modernized corporate governance, enhanced
operations and disciplined capital allocation. It is time for
shareholder voices to be heard that the status quo is no longer
tolerable by electing two highly –qualified directors – Charles Elson
and Jonathan Litt – to the Taubman Board at the Company's upcoming 2017
Annual Meeting of Shareholders.

Land and Buildings' Taubman Centers director nominees, Charles Elson and
Jonathan Litt, will be hosting a conference call today at 10AM Eastern
to discuss the presentation released today.


Domestic: 800 708 3128

International: +1 303 223 2682

Please email questions and comments to

It is Time for Change and Accountability.

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About Land and Buildings:

Land and Buildings is a registered investment manager specializing in
publicly traded real estate and real estate related securities. Land and
Buildings seeks to deliver attractive risk adjusted returns by
opportunistically investing in securities of global real estate and real
estate related companies, leveraging its investment professionals' deep
experience, research expertise and industry relationships.

1 References to Class A Mall Peers is the peer group defined
by Land and Buildings as Taubman's high quality mall peers GGP, Inc.
(NYSE:GGP), The Macerich Company (NYSE:MAC) and Simon Property Group
Inc. (NYSE:SPG), which are the only U.S. publicly traded regional mall
companies (in addition to Taubman) that primarily own class A, high
sales productivity, enclosed regional malls (collectively, "Class A Mall

2 Figures reflect pro rata ownership of assets; Land and
Buildings' estimates used where the Company does not disclose each
metric. For each of Taubman and the Class A Mall Peers, Land and
Buildings identified what it believes to be the most comparable figures
to arrive at such company's share of income statement figures, including
consolidated figures as well as estimated percentages of unconsolidated
figures, to match each respective company's ownership percentage of its
assets. Land & Buildings' analysis is subject to the following
limitations: (i) each company does not disclose operating results using
the same line items, (ii) company disclosure of unconsolidated assets
varies by company and (iii) not all companies provide pro rata EBITDA,
in which case Land and Buildings has estimated such figures. Please
refer to Appendix A of Land and Buildings' definitive proxy statement
filed with the SEC on April 18, 2017, which further describes Land and
Buildings' EBITDA calculations and estimates. Approximately $1.7 billion
of value creation opportunity missed based on applying the rate Land and
Buildings applied in its valuation analysis to the amount of incremental
income that the Company would generate if it were to generate EBITDA
margins consistent with Class A Mall Peers over the past five years.

3 Approximately $1 billion of losses based on Land and
Buildings' estimates for four projects over the past 5 years as detailed
in its presentation.

4 Land and Buildings, based on its more than 25 years of real
estate experience and extensive knowledge of real estate valuations,
applied estimated private market valuation cap rates to Taubman's
reported operating results utilizing a net asset value framework to
arrive at estimated net asset value and potential value creation from
margin expansion. The valuations referenced herein are estimates and,
therefore, there can be no assurance that such estimates are reflective
of actual realizable value. Land and Buildings believes its nominees
will work rigorously to help put the Company on the right path towards
shareholder value creation, however, if elected at the Annual Meeting
its nominees will constitute a minority of the Board and there can be no
guarantee that they will be able to implement the actions that they
believe are necessary to maximize shareholder value, including those
outlined in Land and Buildings' presentation.

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