This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Taubman's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Retailers’ sentimental leasing activity remains strong. Comp Center NIO, excluding lease cancellation income was up a solid 8.2% for the quarter. NOI growth was driven by rents and recoveries. Sponsorship income also contributed.

As you’ll recall, we reported a 9.3% increase in the first quarter, so it’s been two periods of outstanding growth. With this performance, we are raising our guidance on NIO growth to a range of 5% to 6% for the year. That’s up significantly from the 4% outlook that we communicated last quarter. This means we continue to expect NOI growth to moderate in the second half of the year.

While rent is projected as consistently good quarter-over-quarter growth throughout the year, we expect volatility and seasonality of net recoveries to reduce comparable NOI growth in the next two quarters.

On June 30, occupancy at comp centers was 90.2%. In addition, we had 4.1% occupancy in temporary tenants at comp centers, our highest level in the second quarter we’ve seen since we began tracking the statistic. This raised our total occupied space to 94.3% at June 30.

Comp center occupancy was up 200 basis points from June 30 last year and better than anticipated for this quarter. This is largely due to an unprecedented low level of unscheduled closings we’ve had to-date in 2012. Only one tenant with four stores declared bankruptcy in the quarter. We continue to believe that occupancy will be up about 150 basis points over 2011 for the rest of the year. Of course, strong occupancy favorably impacted both rent and recoveries in the quarter.

Average rent per square foot of $47.07 was up a healthy 3.8% from last year. Year-to-date average rent was up 2.7%. We continue to believe we’ll achieve our guidance of 3% rent per square foot growth for the year.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 16,912.29 +122.10 0.73%
S&P 500 1,995.83 +15.91 0.80%
NASDAQ 4,791.1520 +42.7910 0.90%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs