Simon Property Group Inc. (NYSE:SPG.PRJ) Q2 2016 Earnings Conference Call - Final Transcript
Jul 27, 2016 • 09:00 am ET
Good day, ladies and gentlemen, and welcome to the Q2 2016 Simon Property Group Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions]
As a reminder, this call will be recorded. I would now like to introduce your host for today's conference, Mr. Tom Ward, Senior Vice President of Investor Relations. Please go ahead.
Thank you, Catherine. Good morning, everyone. Thank you for joining us today. Presenting on today's call is David Simon, Chairman and Chief Executive Officer. Also on the call are Rick Sokolov, President and Chief Operating Officer; Andy Juster, Chief Financial Officer; and Steve Broadwater, Chief Accounting Officer.
Before we begin, a quick reminder that statements made during this call may be deemed forward-looking statements within the meaning of the Safe Harbor of the Private Securities Litigation Reform Act of 1995, and actual results may differ materially due to a variety of risks, uncertainties, and other factors. We refer you to today's press release and our SEC filings for a detailed discussion of forward-looking statements.
Please note that this call includes information that may be accurate only as of today's date. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included within the press release and the supplemental information in today's Form 8-K filing. Both the press release and the supplemental information are available on our IR website at investors.simon.com. For our prepared remarks, I'm pleased to introduce David Simon.
Okay. Thank you. We had a productive quarter. We're pleased with our strong financial results. We started, completed, opened several significant redevelopment and new development projects that will further enhance the value of our portfolio. We completed the acquisition of The Shops at Crystals, and we continue to achieve strong operating and financial results and raised our dividend yet again.
Results in the quarter were highlighted by FFO of $2.63 per share on a comparable basis excluding a gain on the sale of marketable securities. In the prior year period, FFO per diluted share increased 9.1% or $0.22 year-over-year for the quarter. And for the first six months, our comparable FFO per diluted share is up 12.1% compared to the prior year period. Our operating metrics were strong as well as our cash flow. Our mall and premium outlet occupancy was 95.9%. The 20 basis point decrease in occupancy from the prior year period is a direct result due to the new developments and expansions we opened recently.
Leasing activity remains healthy. The malls and premium outlets recorded releasing spreads of $8.88 per square foot, an increase of 14.8%, and our base minimum rent was $50.43 which was up 4.9% compared to last year, reflecting the strong retail demand for our location. And as a reminder, we provided additional new metrics summarizing the composition of our total portfolio NOI. Please see this in the supplemental and the release. And for the second quarter of