Taubman Centers Inc. (TCO), a real estate investment trust (:REIT), recently announced that its Mich.-based premium shopping center – Twelve Oaks Mall – will receive an outlet of The Cheesecake Factory Incorporated (CAKE). The new outlet is expected to open later this year.
Twelve Oaks Mall, the major regional shopping center, is expediently located at the intersection of I-96 and Novi Rd. The shopping center has around 200 shops and boasts a cluster of industry-leading tenants such as Nordstrom Inc. (JWN), Macy's, Inc. (M) and JCPenney. The new Cheesecake Factory outlet will be a noteworthy addition to the center’s strong tenant base.
Calabasas Hills, Calif.-based The Cheesecake Factory operates upscale, casual, and full-service dining restaurants in the United States. As of now, the company operates 177 restaurants under its different brands throughout the U.S. Notably, the new outlet, spanning 8,430 square feet, is the company’s first restaurant in Mich. The new outlet is expected to accommodate around 225 guests and around 60 on the patio.
Taubman Centers remains upbeat regarding the addition of Cheesecake Factory outlet at its upscale shopping center, since the latter boasts a successful track record. We expect the Cheesecake Factory’s popularity among shoppers to further boost the shopping center’s top-line growth.
Earlier this month, Taubman Centers reported its fourth quarter 2012 results with adjusted FFO (funds from operations) of $1.00 per share, beating the Zacks Consensus Estimate by 3 cents. This also came above the prior-year quarter’s figure of 93 cents. The better-than-expected results were primarily driven by increase in rents and robust occupancy levels.
Taubman Centers currently retains a Zacks Rank #2 (Buy).
Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
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