Cha ng e is Still Ne e de d a t T a ub ma n Ce nte rs April 2018 - PowerPoint PPT Presentation

Cha ng e is Still Ne e de d a t T a ub ma n Ce nte rs April 2018 www.Save T aubman.c om Ple a se e ma il q ue stio ns o r c o mme nts to : Sa ve T a ub ma n@ L a nda ndBuilding s.c o m

T a b le o f Co nte nts 1. Why We Ar e Still He r e 2. Pe r c e ption vs. Re ality at T aubman 3. T aubman’s Pe r for manc e : A De e pe r Dive 4. Change s We Be lie ve Ar e Still Re quir e d at T aubman www.Sa ve T a ub ma n.c o m 2

Why We Are Still He re 3

Ove rvie w o f L a nd & Building s • F ir m Bac kgr ound - L a nd & Building s I nve stme nt Ma na g e me nt, L L C (to g e the r with its a ffilia te s, “L a nd & Building s”) is a n SE C-re g iste re d inve stme nt a dviso r fo unde d in 2008 a nd lo c a te d in Sta mfo rd, Co nne c tic ut - I nve sts in the pub lic ly tra de d sha re s o f g lo b a l RE I T s a nd re a l e sta te re la te d c o mpa nie s • Inve stme nt Str ate gy - L o ng -te rm inve stme nt ho rizo n - I nve st prima rily in c o mpa nie s with disc o unte d va lua tio ns a nd hig h g ro wth tha t is like ly to c o me in a b o ve e xpe c ta tio ns - Aim to ma inta in a nd nurture c o nstruc tive re la tio nships with po rtfo lio c o mpa nie s • 100% foc use d on r e al e state - L a nd & Building s o nly inve sts in pub lic ly tra de d RE I T s a nd re a l e sta te re la te d e q uitie s - F o unde r a nd Chie f I nve stme nt Offic e r Jo na tha n L itt ha s de dic a te d his c a re e r to re se a rc hing , a na lyzing a nd inve sting in pub lic a nd priva te re a l e sta te - Prio r to fo unding L a nd & Building s, Jo na tha n L itt wa s Ma na g ing Dire c to r a t Citig ro up whe re he wa s re spo nsib le fo r Glo b a l Pro pe rty I nve stme nt Stra te g y fro m 2000 to Ma rc h 2008 - Jo na tha n L itt le d the # 1 I nstitutio na l I nve sto r All Ame ric a n Re a l E sta te Re se a rc h T e a m fo r 8 ye a rs a nd wa s to p ra nke d fo r 13 ye a rs while a t Citig ro up, Pa ine We b b e r a nd Sa lo mo n Bro the rs www.Sa ve T a ub ma n.c o m 4

Why We Are Still He re • We b e lie ve T s, Inc . (“T a ub ma n,” “T a ub ma n Ce nte rs,” “T CO,” o r aubman Ce nte r the “Co mpa ny”) c o ntinue s to be r un fo r the be ne fit o f the T aubman F amily  F undame ntal c o nflic t in whic h appar e nt e ffo r ts to maintain c o ntr o l and avo id paying taxe s thr o ugh the dual-c lass vo ting shar e str uc tur e ar e , in o ur vie w, pr io r itize d o ve r the be st inte r e sts o f c o mmo n shar e ho lde r s • L a st ye a r a t the 2017 Annua l Me e ting o f Sha re ho lde rs (the “2017 Annua l Me e ting ”), we b e lie ve the Co mpa ny c o mmitte d to just e no ug h c ha ng e a t the e le ve nth-ho urto win the vo te a nd c re a te a pe r c e ptio n o f impro ve me nt  I f o ne lo o ks b e ne a th the surfa c e , the c hange s ar e no t suffic ie nt to fix the bro ke n – a c c o unta b ility a nd a true bo ardr o o m c ultur e inc ubate d o ve r de c ade s sha re ho lde r re pre se nta tive in the b o a rdro o m a re re q uire d T he fa c a de ha s impro ve d a t T a ub ma n – b ut b e ne a th the surfa c e the sa me funda me nta l issue s re ma in S o urc e : Co mpany filing s, Blo o mb e rg data No te : T aub man F a mily c o nsisting o f Chie f E xe c utive Offic e r, Pre side nt and Chairman Ro b e rt “Bo b b y” T aub man, Chie f Ope rating Offic e r and dire c to r William "Billy" T aub man, Gayle T aub man Kalisman and the A. Alfre d T aub man Re state d Re vo c able T rust (c o lle c tive ly, the “T aub man F amily”); Base d o n the tab ulatio n o f the vo ting re sults at tha t time , we unde rstand that se ve ral ke y inve sto rs had no t ye t vo te d and/ o r late r re ve rse d the ir vo te , and ultimate ly vo te d fo r T CO’ s no mine e s afte r its anno unc e d c o mmitme nt to de c lassify the Bo ard. Base d o n past vo ting prac tic e s and/ o r po lic ie s o f c e rtain ke y inve sto rs, we unde rstand that the y supp o rt g o o d c o rpo rate g o ve rnanc e and typic ally vo te in favo r o f manag e me nt if the c o mpany c o mmits to o r e nac ts g o ve rnanc e e nhanc e me nts. www.Sa ve T a ub ma n.c o m 5

Co ntinue d Unde rpe rfo rma nc e Afte r 2017 Annua l Me e ting • T he sta tus q uo ha s pe rsiste d, le a ding to a 22% T SR unde r pe r fo r manc e vs. s sinc e the 2017 Annua l Me e ting Class A Mall Pe e r • T his po o r pe rfo rma nc e is, in o ur vie w, due prima rily to thre e fa c to rs: x T he same unde rlying r e sistanc e to tr uly e mbr ac e go o d c o r po r ate go ve r nanc e x T he same o pe r atio nal de fic ie nc ie s x T he same stubbo r n appr o ac h to c apital allo c atio n T a ub ma n’ s Bo a rd’ s a c tio ns ha ve funda me nta lly inhib ite d sha re ho lde r va lue c re a tio n a nd ha ve c o st a ll T a ub ma n sha re ho lde rs de a rly, in o ur vie w S o urc e : Co mpany filing s, Blo o mb e rg data No te : Class A Mall Pe e rs de fine d b y L and & Building s as GGP, I nc ., T he Mac e ric h Co mpany, and S imo n Pro pe rty Gro up I nc ., whic h are the o nly U.S. public ly trade d re g io nal mall c o mpanie s (in additio n to T CO) tha t primarily o wn c lass A, hig h sale s pro duc tivity, e nc lo se d re g io nal malls (c o lle c tive ly, “Class A Mall Pe e rs”); T o tal S hare ho lde r Re turn o f GGP, MAC, S PG and T CO c alc ulate d fro m May 31, 2017 thro ug h No ve mb e r9, 2017, prio r to ac tivism re po rte d b y RE I TWrap o n No ve mb e r10, 2017 www.Sa ve T a ub ma n.c o m 6

Cha ng e s We Be lie ve Are Still Re q uire d a t T a ub ma n (1 o f 2) 1. Add a tr ue sha r e holde r r e pr e se nta tive in the boa r dr oom  Jo na tha n L itt o f L a nd & Building s wa s alr e ady suppo r te d at last ye ar’s Annual Me e ting by a majo r ity o f no n-T aubman F amily shar e ho lde r s  T he Co mpa ny ha s c o mmitte d to a dding a ne w dire c to r to the Bo a rd o f Dire c to rs (the “Bo a rd”) o n o r b e fo re the 2019 Annua l Me e ting – why wait?  Why no t a vo id a no the r pro xy c o nte st a nd wo rk c o nstruc tive ly with a la rg e sha re ho lde r?  T he re is no ne e d fo r two T a ub ma n F a mily me mb e rs a nd two Co mpa ny o ffic e rs o n the Bo a rd – Ro b e rt “Bo b b y” T a ub ma n is Cha irma n o f the Bo a rd , Pre side nt, a nd Chie f E xe c utive Offic e r a nd his b ro the r Billy T a ub ma n is Chie f Ope ra ting Offic e r a nd Dire c to r  Mr. L itt wo uld b ring fr tise a nd impo rta ntly, a n e sh pe r spe c tive , de e p REITe xpe r s , in c o ntra st to Billy alignme nt o f inte r e sts with c o mmo n shar e ho lde r T a ub ma n’ s se e ming ly insula r vie ws S o urc e : Co mpany filing s No te : Base d o n L and & Building s’ re vie w o f the final tab ulatio n o f the vo ting re sults fo r the 2017 Annual Me e ting , a majo rity o f no n-T aub man F amily share ho lde rs, whic h e xc lude s the 30% vo ting inte re st he ld b y the T aub man F amily, vo te d in favo r o f the e le c tio n o f Jo nathan L itt www.Sa ve T a ub ma n.c o m 7

Cha ng e s We Be lie ve Are Still Re q uire d a t T a ub ma n (2 o f 2) 2. E limina te the dua l- c la ss voting str uc tur e  Dual-c lass vo ting str s o f T CO uc tur e has dise nfr anc hise d c o mmo n shar e ho lde r fo r ye a rs, hig hlig hte d b y re je c tio n o f the Simo n Pro pe rty Gro up (SPG) a c q uisitio n o ffe r a nd the dire c to r vo ting re sults a t the 2017 Annua l Me e ting  L a nd & Building s sub mitte d a no n-b inding pro po sa l re q ue sting tha t the Bo a rd ta ke ste ps to e limina te the dua l-c la ss vo ting sha re struc ture b y o ffe ring to e xc ha ng e sha re s o f T a ub ma n Co mmo n Sto c k fo r sha re s o f the Se rie s B Pre fe rre d Sto c k tha t is o wne d a lmo st e ntire ly b y the T a ub ma n F a mily  T his pro po sa l c o uld se rve a s a re fe re nd um d e mo nstra ting the will o f a ll sha re ho ld e rs a nd a llo w fo r a n o rd e rly tra nsitio n to a mo re sha re ho ld e r-frie ndly struc ture  L a nd & Building s re q ue ste d tha t T a ub ma n fo rm a c o mmitte e to e va lua te stra te g ie s to e limina te the dua l-c la ss sha re struc ture , b ut to no a va il  T a ub ma n’ s d e fe nse tha t the dua l-c la ss struc ture is c o mmo n in fa mily c o mpa nie s is misle a ding , in o ur vie w, a s the Co mpany is 98% o wne d by no n- family shar e ho lde r s S o urc e : Co mpany filing s, S PG filing s, Andre w Ro ss S o rkin: “Big Mall Owne r Re je c te d in Bid fo r T aub man”, T he Ne w Yo rk T ime s, No ve mb e r14, 2002 No te : Base d o n L and & Building s’ re vie w o f the final tab ulatio n o f the vo ting re sults fo r the 2017 Annual Me e ting , a majo rity o f no n-T aub man F amily share ho lde rs, whic h e xc lude s the 30% vo ting inte re st he ld b y the T aub man F amily, vo te d in favo r o f the e le c tio n o f Jo nathan L itt www.Sa ve T a ub ma n.c o m 8