Shelly J. DoranGood morning, and welcome to Simon Property Group's Second Quarter 2012 Earnings Conference Call. Please be aware that statements made during this call may be deemed forward-looking statements, and actual results may differ materially from those indicated by forward-looking statements due to a variety of risks, uncertainties and other factors. Please refer to our filings with the SEC for a detailed discussion. Acknowledging the fact that this call may be webcast for some time to come, we believe it is important to note that our call includes time-sensitive information that may be accurate only as of today's date, July 24, 2012. 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. This package 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 E. Simon Okay, thanks. Good morning, everyone. We're pleased with our strong results for the quarter, and I'll just go through some highlights. First of all, funds from operation was $1.89 per share, up 14.5% from the second quarter of 2011. Our FFO exceeded the First Call consensus by $0.08 per share. For the malls and the Premium Outlets, our comparable property NOI grew 5.1%. Comp NOI growth in the second quarter of 2011 was 3.5%, so a very healthy trend. Tenant sales were up 9.9% to $554 per foot. Occupancy was up 60 basis points to 94.2%. Average rent per square foot increased by 3.7%, and the releasing spread was a positive 10% or $4.77 per square foot.
On the capital market side, on June 1, as you know, we completed a new $2 billion unsecured revolving credit facility that supplements our existing $4 billion revolver, resulting in $6 billion of total capacity. The facility matures 2016 with a 1-year extension option at the same rate as our other facility, which is LIBOR plus 100 basis points. In the secured market, we've been very active year-to-date. We have closed a lock rate on 17 new mortgages, totaling approximately $1.9 billion, of which our share of that debt is $1.3 billion. The weighted average interest rate on the loans is 4.3%, and the term is 7.5 years on the average term. And last Friday, we redeemed 2 million units of our operating partnership owned by an affiliate of JCPenney at $124 per unit or share.On the acquisition side, June 4, we acquired a 50% interest in Silver Sands Factory Stores, a large and highly productive upscale outlet centered in Destin, Florida. The 450,000-square foot center generates sales of approximately $500 per square foot. We've assumed leasing and management duties, and in the coming months, it will be re-branded as a Premium Outlet Center. Development activity is very strong. First of all, we grand opened Merrimack Premium Outlets, a large outlet center in Merrimack, New Hampshire on June 14. Strong opening. We're 99% leased, great-looking center. Construction continues on 5 additional Premium Outlet Centers, all scheduled to open this fall or in 2013. They're located in the U.S., Canada, Japan and Korea, clearly demonstrating the global nature of our company in our Premium Outlet platform. First of all, 2 in the U.S. are in Texas City, suburb of Houston, which opens this fall; and then Chandler, Arizona, a suburb of Phoenix, which will open next year. We're continuing construction in Toronto, which opens next year. Another outlet center in Japan, which will be our ninth, near the airport outside of Tokyo; and Busan, our third Premium Outlet Center in Korea. We started construction on July 11 at St. Louis Premium Outlet Centers. We announced the strong lineup of tenants and are opening this plant for the fall of 2013.
Progress is being made under our agreement to develop Premium Outlet Centers in Brazil with BR Malls. And importantly, construction is underway on 25 redevelopment expansion projects at the mall, Premium Outlet and Mills platforms in the U.S. and 2 Premium Outlets in Japan, all with 2012/2013 completion dates. We continue to expect our share of the development and redevelopment spend to approximate $1 billion this year, next year and 2014.Let me just turn to Klepierre and give you a quick update. As you know, we bought 54.4 million shares or 29% of the French public company in March. They are the largest -- second largest owner of retail assets in Continental Europe, with assets valued at EUR 16.2 billion. They will be announcing their earnings later today. Their business has been remarkably stable considering the turmoil in Europe. They have made excellent progress in refinancing debt, selling assets and creating additional liquidity. And I have been very involved in the development of their future strategic direction. As they accomplish their goals, there's no doubt in my mind that they will be poised to take advantage of future growth opportunities. Read the rest of this transcript for free on seekingalpha.com