Simon Property Group Inc. (NYSE:SPG.PRJ) Q3 2016 Earnings Conference Call - Preliminary Transcript
Oct 26, 2016 • 11:00 am ET
Good day, ladies and gentlemen, and welcome to the Simon Property Group Third Quarter 2016 Earnings Conference Call. At this time, all participants are in a listen-only mode. (Operator Instructions) As a reminder, this conference call is being recorded.
And now I'll turn the conference over to your host, Tom Ward, Senior Vice President, Investor Relations. Please begin.
Thank you, Tyrone. Good morning, and welcome to Simon Property Group's third quarter 2016 earnings conference call. 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. Good morning. We had a very productive quarter. We started, completed opened several significant redevelopment and transformation projects that will further enhance the value of our portfolio. And we continue to achieve strong financial results. Before I get to some of the highlights of the quarter, I would like to quickly highlight our outlook for the remainder of the year.
Based on our performance year-to-date our current view of the quarter, we are once again increasing our full-year 2016 FFO per share guidance range to $10.85 to $10.87, which was higher than our original guidance of $10.70 to $10.80. Our increased range also reflects the potential charge of $0.08 per share with respect to our likely decision to postpone the construction of the Copley Residential Tower, due to the rapidly rising construction cost and our beginning concerns around supply and demand in the Boston residential market. Work will continue on redeveloping and modernizing the existing retail space at the center as well as the development of the Southwest Corridor, which will create a new entrance to Copley. We expect this work will enhance the shopping experience for our guests and retailers and further strengthen our position in the heart of Boston and will be completed by summer of '17. Assuming we make the decision to postpone, it does not foreclose the opportunity to build the tower in the future as market conditions warrant. Now let me turn to the quarter.
FFO per share was $2.70, an increase of 6.3% compared to the prior year,