This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Taubman CEO Pleased by Refinancing Progress

NEW YORK ( TheStreet) -- Taubman Centers (TCO - Get Report) is getting its financial house in order as it refinances its deals to better terms, and CEO Richard Taubman is encouraged by the reception the company's refinancings have gotten from the capital markets so far.

The Bloomfield Hills, Mich., real estate investment trust and mall development company refinanced its Detroit property The Mall at Partridge Creek in June and it has two more lined up for new financing in the third quarter.

In the near term, Taubman's retail clients are focused on shoppers. Consumers tightened up on spending in May and June, bringing back talk of a double-dip recession. However, luxury retailers fared better than others.

Taubman Centers CEO Robert Taubman: Demand for Space

"We believe that a rebound in luxury spending aided by an improving economy bodes well for TCO, whose properties cater to affluent consumers," wrote Standard & Poor's analyst Robert McMillan in a recent research note. McMillan has a hold rating on Taubman shares but his 12-month price target of $46 represents a premium of more than 15% to current prices.

Wall Street is on the fence about the company. Of the 12 analysts covering the stock, eight have hold ratings. One outstanding issue is its The Pier Shops property in Atlantic City. It is the only loan Taubman has defaulted on and the property owner Atlantic Piers Association went into foreclosure in April. The company wrote down the property after the cash generation became too low to cover the debt.

Chairman and CEO Robert Taubman spoke with TheStreet recently about the health of the consumer and other topics.

TheStreet: How is the consumer doing? What are you seeing with the retailers in your malls?

Taubman: Well we actually think they're doing pretty well in our centers and we see that for the consumers and those that have jobs it is a long recovery and clearly unemployment is going to be very difficult for a while, technical unemployment. But those that have jobs, a year, a year and a half ago, they thought they might lose them and they pulled back.

Now they don't feel that way, they feel very confident in their jobs and therefore they are spending money and so we see that in our centers and our centers over the last couple of quarters have performed very well.
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
TCO $69.45 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs