Taubman Centers, Inc. announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2018. For the quarter, the company reported total revenues were $159,120,000 against $153,222,000 a year ago. Non- operating income, net was $8,700,000 against $2,494,000 a year ago. Net income was $38,115,000 against $14,251,000 a year ago. Net income attributable to common shareowners was $20,976,000 against $4,363,000 a year ago. EBITDA was $99,912,000 against $74,169,000 a year ago. Funds from Operations attributable to partnership unitholders and participating securities of TRG were $57,002,000 or $1.01 per share against $36,028,000 or $0.77 per share a year ago.

For the nine months, the company reported total revenues were $473,381,000 against $456,981,000 a year ago. Non- operating income, net was $13,858,000 against $8,347,000 a year ago. Net income was $102,804,000 against $74,673,000 a year ago. Net income attributable to common shareowners was $54,873,000 against $35,016,000 a year ago. EBITDA was $272,907,000 against $230,981,000 a year ago. Funds from Operations attributable to partnership unitholders and participating securities of TRG were $145,716,000 or $2.85 diluted per share against $120,670,000 or $2.67 diluted per share a year ago.

The company is raising its EPS, NOI, FFO, and Adjusted FFO guidance ranges for 2018. EPS is now expected to be in the range of $1.17 to $1.27 per diluted common share, up from the previous range of $1.11 to $1.26. Comparable center NOI growth is now expected to be 3.5% to 4.5% for the year, up from the previous range of 3% to 4%. This range assumes fourth quarter comparable center NOI will essentially be flat compared to last year, primarily due to tougher comparable results in the U.S. and timing in Asia, where two holidays shifted from the fourth quarter last year to the third quarter this year. FFO, which includes $0.07 per diluted common share of year-to-date adjustments, is now expected to be in the range of $3.69 to $3.77 per diluted common share, up from the previous range of $3.63 to $3.73. Adjusted FFO, which excludes the $0.07 per diluted common share of year-to-date adjustments, is now expected to be in the range of $3.76 to $3.84 per diluted common share, up from the previous range of $3.74 to $3.84.

The guidance range suggests that Adjusted FFO per share will be between $0.84 and $0.92 in the fourth quarter, compared to $1.03 in the fourth quarter of 2017. The primary drivers are expected to be higher interest expense, lower lease cancellation income, and one-time promotional expenses related to Beverly Center's Grand Reveal. The combined impact of these items is expected to be $0.15 to $0.17 per share.

The company is introducing certain guidance measures for 2019. Consolidated and unconsolidated interest expense, at 100%, is expected to be $297 million to $303 million, up from $265 million to $268 million in 2018. At beneficial share, consolidated and unconsolidated interest expense is expected to be $221 million to $227 million, up from $189 million to $192 million in 2018. The significant increase in interest expense is due to a combination of higher interest rates, less capitalized interest, and greater borrowings.