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Taubman Takes Big Charge for Oyster Bay Project

Taubman Centers has taken an impairment charge of $115.9 million to cover its unfulfilled plan to build The Mall at Oyster Bay.

Taubman Centers Inc. put a price tag on its failed bid to build a high-end Long Island mall in Syosset, N.Y., and it stretched to nine figures.

The real estate investment trust said Wednesday that it had taken an impairment charge of $115.9 million to cover its unfulfilled plan to build The Mall at Oyster Bay. An appellate division judge this month reversed a New York State Supreme Court decision ordering the town of Oyster Bay to issue a special permit for the facility.

Taubman’s net loss for the fourth quarter ended Dec. 31 came to $95.1 million and also included an $8.3 million charge for a postponed project in Sarasota, Fla. The loss came against net income of $21.4 million in the prior-year quarter. The charges led Taubman to a funds from operations loss of $43.4 million from an FFO profit of $70.3 million in the year-ago quarter. Excluding impairment charges, FFO per diluted share was $1, ahead of estimates and up from 87 cents in the 2007 quarter.

Revenues for consolidated businesses, excluding those in which Taubman holds a partial interest, rose 6.2 percent to $190 million from $178.9 million in the prior-year period. At quarter’s end, the occupancy rate of Taubman’s portfolio was 90.3 percent, down from 91.2 percent a year earlier, with the decline “primarily the result of the closing in late 2008 of three big-box store locations at the company’s value centers, which were part of national bankruptcies.”

Rents per square foot in the consolidated portfolio were $44.58 last year, up 2.7 percent from the year before.