Taubman Centers, Inc. (NYSE:TCO) Q2 2019 Earnings Conference Call - Final Transcript
Jul 26, 2019 • 11:00 am ET
Thank you for holding and welcome to the Taubman Centers' Second Quarter 2019 Earnings Conference Call. The call will begin with the prepared remarks and then we will open the lines to question.
On the call today will be Robert Taubman, Taubman Centers' Chairman President and Chief Executive Officer; Simon Leopold, Chief Financial Officer; and Ryan Hurren, Vice President, Investor Relations, Interim Chief Accounting Officer.
Now, I will turn the call over to Ryan for opening remarks.
Thank you, operator, and welcome, everyone, to our second quarter conference call. As you know during this conference call, we'll make forward-looking statements within the meaning of federal securities laws. These statements reflect our current views with respect to future events and financial performance although actual results may differ materially.
Please see yesterday's earnings release and our SEC filings including our latest 10-K and subsequent reports for a discussion of various risks and uncertainties underlying our forward-looking statements. In addition a replay of this call will be provided through a link on the Investor Relations section of our website.
During this call, we'll also discuss non-GAAP financial measures as defined by SEC Regulation G. Reconciliations to these non-GAAP financial measures to the comparable GAAP financial measures are included when possible in our earnings release, our supplemental information, and our historical SEC filings.
Non-GAAP measures referenced on this call may include estimates of future EBITDA, NOI, after-tax NOI, and/or FFO performance of our investment properties. Such forward-looking non-GAAP measures may differ significantly from the corresponding GAAP measured net income due to depreciation and amortization, tax expense, and/or interest expense, some or all of which management has not quantified for the future periods.
Following today's prepared remarks we will open the call up for questions. We ask that we limit your questions to two. If you have more please queue up again.
Now, let me turn the call over to Bobby.
Thanks, Ryan, and good morning, everyone. Yesterday, we released our second quarter results. We produced solid earnings growth with adjusted FFO of $0.94 up 8% over last year. The primary drivers of this growth were better rents, recoveries, lease cancellation income, and higher-than-anticipated insurance proceeds and standalone. Comp center NOI growth excluding lease cancellation income was up 30 basis points, in line with our expectations.
Excluding the impact of currency, NOI growth was 1.4%. Our pro rata share of total portfolio NOI continues to grow at a significantly faster pace up 4.6% in the quarter and 5.1% year-to-date. This is on top of 4.7% growth in 2018.
At a time when the ability of mallers to grow NOIs in question, we are producing solid numbers. Last year the stabilization of our Asia Developments and International Market Place in Hawaii drove our pro rata growth rate. This year growth in our best assets that are 100% owned as well as our non-comparable centers Saint Laurent and Beverly Center along with the addition of The Gardens Mall in Palm Beach are the primary factors.
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