Simon Property Group Inc SPG
Q1 2013 Earnings Call Transcript

Transcript Call Date 04/26/2013

Operator: Good day, ladies and gentlemen, and welcome to the First Quarter 2013 Simon Property Group Earnings Conference Call. My name is Dominique, and I'll be your operator for today. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session.

I would now like to turn the call over to Ms. Shelly Doran, Vice President of Investor Relations. Please proceed.

Shelly Doran - VP of IR: Good morning, and welcome to Simon Property Group's first quarter 2013 earnings conference call. Please be aware that statements made during this call may be deemed forward-looking statements and actual results may differ materially due to a variety of risks, uncertainties, and other factors. You may refer to our SEC filings for a detailed discussion of forward-looking statements.

Please note that today's call includes time-sensitive information that may be accurate only as of today's date, April 26, 2013. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included within the earnings release or the Company's supplemental information package that was included in this morning's Form 8-K filings. This supplemental is available on the Simon website in the Investors section.

Participating in today's call will be David Simon, Chairman and Chief Executive Officer; Rick Sokolov, President and Chief Operating Officer; and Steve Sterrett, Chief Financial Officer.

I will now turn the call over to Mr. Simon.

David Simon - Chairman and CEO: Good morning. Our results for the quarter were strong. FFO was $2.05 per share, up 12.6% from the first quarter 2012. Our FFO exceeded the First Call consensus at quarter end by $0.05 per share. . For our malls and premium outlets, comparable property NOI growth was 4.8% and that was off a 5.7% increase in Q1 of 2012. Tenants sales were up 5.3% to $575 per square foot. Occupancy up 110 basis points to 94.7%.

Base minimum rent per square foot was 3% higher and our releasing spread was a positive 13.4% or $7 per square foot. We were very active in the debt markets during the quarter, closing or locking rates on 13 new loans, totaling approximately $2 billion, of which our share was $1.3 billion. The average rate was 2.92%, and a weighted average term of little over eight years.

Let me turn to the all-important development activity; first of all, we opened the Phoenix Premium Outlet centers in Chandler, Arizona on April 4. The center is 100% leased, opened with an impressive collection of stores. I will not name them, Rick will if you are interested. Several high-profile stores we'll be opening in the coming weeks. The good news is the shopper response has been very strong and many merchants reporting as one of their best outlet openings in the last couple of years.

Shisui Premium Outlets opened on April 19. This is our ninth center in Japan. It's located 15 minutes from Narita International Airport serving Greater Tokyo. The center opened with large crowds and 70 media outlets opening, and we expect this to be a terrific center serving the area visitors to Tokyo, given the proximity to the airport.

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