Core Viewpoint - Tanger Properties Limited Partnership intends to offer $200 million aggregate principal amount of Exchangeable Senior Notes due 2031 in a private placement, subject to market conditions and other factors [1]. Group 1: Company Overview - Tanger® is a leading owner and operator of outlet and open-air retail shopping destinations [1]. Group 2: Financial Details - The offering consists of Exchangeable Senior Notes with a due date in 2031, indicating a long-term financing strategy [1].

Core Insights - Holiday shoppers are willing to spend but are seeking value, leading to increased traffic and sales at Tanger's outlet centers [1][2] - Retailers are responding to consumer demand by offering promotions, resulting in full parking lots and steady activity during the holiday season [2] - Mastercard reported a 3.9% year-over-year increase in retail sales for November and December, while Visa noted a 4.2% increase in holiday retail spending [3] Retail Performance - Simon Property Group reported a 6.4% year-over-year increase in traffic at its malls and premium outlets during the Black Friday weekend, with many brands experiencing double-digit sales increases [4] - The overall retail environment is thriving, despite a decline in consumer confidence [4] Consumer Confidence - The Conference Board reported a 3.8-point drop in consumer confidence in December, marking the fifth consecutive decline, affecting various demographics [5] - Factors influencing consumer sentiment include prices, inflation, tariffs, and personal finance issues [6]

Core Insights - U.S. shoppers are willing to spend during the holiday season, driven by attractive deals despite declining consumer confidence and price anxiety [1][2] - Retailers are heavily discounting to attract consumers, resulting in sustained traffic and sales at Tanger's outlet centers [1][2] - Holiday traffic at Tanger's outlets has been strong, with full parking lots and consistent activity noted through November and December [2] Retail Spending Trends - U.S. retail spending increased by 4.2% year over year during the holiday season before adjusting for inflation, with in-store shopping accounting for 73% of total spending [3] - Online sales also contributed to growth, rising by 7.8% compared to the previous year [3] Consumer Confidence - Consumer confidence weakened in December, with the Conference Board's index dropping to 89.1, reflecting concerns over high prices and tariffs [4] - A recent survey indicated that 41% of Americans planned to spend less this holiday season, an increase of 6 percentage points from the previous year [5] Retailer Sentiment - Retailers express confidence in demand for 2026, indicating a positive outlook despite current consumer sentiment [5] - There is a trend among brands to control their own physical retail presence as department stores consolidate [6]

Consumer Confidence and Spending Trends - December consumer confidence data shows the fifth consecutive month of declines, reaching the lowest level since April [1] - Despite declining confidence, overall consumer spending is reported to be 4% higher than last year, indicating resilience among consumers [1] Holiday Spending Insights - The National Retail Federation (NRF) projects holiday spending to exceed one trillion dollars for the first time, highlighting a significant milestone [3] - Retail traffic in shopping centers remains strong, with full parking lots and active customer engagement observed [3] Retailer Strategies and Consumer Behavior - Retailers are discounting products to align with consumer expectations, leading to increased shopping activity [4] - Consumers are showing a preference for aspirational brands, purchasing items that may typically be above their price point but are available at value prices [6] Brand Performance - Notable brands such as Ralph Lauren, Gap, Kate Spade, Michael Kors, Coach, and Tory Burch are performing well in the current market [6]

Tanger (SKT) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The power of a changing ...

Core Viewpoint - The article compares Phillips Edison & Company, Inc. (PECO) and Tanger (SKT) to determine which stock is more attractive to value investors [1] Group 1: Zacks Rank and Earnings Outlook - PECO has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to SKT, which has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank emphasizes companies with positive estimate revision trends, which is a key factor for value investors [2] Group 2: Valuation Metrics - PECO's forward P/E ratio is 13.56, while SKT's forward P/E ratio is 14.72, suggesting that PECO may be undervalued relative to SKT [5] - PECO has a PEG ratio of 1.51, compared to SKT's PEG ratio of 2.03, indicating better expected earnings growth relative to its price [5] - PECO's P/B ratio is 1.71, significantly lower than SKT's P/B ratio of 5.19, further supporting the notion that PECO is undervalued [6] Group 3: Value Grades - PECO has a Value grade of B, while SKT has a Value grade of C, indicating that PECO is viewed more favorably by value investors [6] - The combination of Zacks Rank and Style Scores suggests that PECO is the better investment option for value investors at this time [6]

Core Insights - The focus is on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1][2] - Inflation remains persistent around 3%, prompting a preference for hard assets over fiat currency [2] - The investment group iREIT®+HOYA Capital specializes in high-yield, dividend growth investment ideas, targeting dividend yields up to 10% [2] Investment Strategy - The investment strategy emphasizes defensive stocks with a medium- to long-term horizon [2] - The group offers research on various asset classes including REITs, ETFs, closed-end funds, preferreds, and dividend champions [2] - The service aims to help investors achieve dependable monthly income and portfolio diversification [2]

Core Insights - The retail sector is showing resilience, with strong consumer traffic anticipated for the holiday season, particularly for brands like Gap and Old Navy [2][3][4] - The outlet channel is experiencing increased consumer visits, with shoppers seeking brand value and frequent discounts [5][6][7] Consumer Behavior - Consumers are returning to shopping across various income levels, not just high-income brackets, indicating broad market strength [4] - There is a notable increase in shopping frequency, with consumers engaging in early holiday shopping [5] Brand Performance - Brands such as Gap, Aritzia, and Under Armour are performing well, with Under Armour focusing on youth athletics to attract younger consumers [7][8] - Footwear remains a significant category, with brands like Nike continuing to draw consumer interest [7] Regional Trends - The Northeast is seeing increased sales in outerwear due to favorable weather conditions, with products like puffer jackets gaining popularity [10][11] Real Estate and Development - The company is acquiring real estate at favorable prices, with recent acquisitions being made at 40 to 50 cents on the replacement dollar, which is advantageous compared to ground-up development [12][13] - There is a scarcity of new developments, leading retailers to hold onto existing locations and pay more for them, benefiting the company and its shareholders [13] Lifestyle Centers - The company is expanding into non-outlet retail centers, particularly lifestyle centers, to attract a broader consumer base and enhance value [14][15] - The strategy includes incorporating more restaurants and entertainment options to increase foot traffic and enhance the shopping experience [15] Pricing Strategies - Retailers in the outlet channel can adjust prices quickly to move inventory, often offering significant discounts that appeal to consumers [6][19] - There has been some price adjustment due to tariffs, but consumers continue to buy, indicating a strong demand despite potential price increases [18]

Core Insights - The retail sector is experiencing brisk demand, with Tanganger reporting record leasing volume, indicating strong interest in retail space [1] - There is a bifurcated economy, with some consumers facing challenges, yet many brands continue to expand and seek new locations [2] - Retailers are primarily focused on a one-year outlook for traffic and sales, with ongoing deals for future years [3][4] Consumer Behavior - Value has become increasingly important for consumers, especially in the outlet channel, where everyday sales resonate well with shoppers [5] - Younger consumers are being attracted to brands that offer products priced below inflation, enhancing their appeal [6] Retail Forecast - Key metrics for forecasting the holiday season include stock levels and staffing in stores, with current observations showing stores are well-stocked and staffed [7][8] - Despite potential economic challenges, there is optimism for continued consumer spending, with the National Retail Federation projecting an increase in spending compared to last year [9]

Financial Data and Key Metrics Changes - Core FFO was $0.60 per share, representing an 11% increase compared to $0.54 per share in the prior year period [12][3] - Same-center NOI growth was 4%, contributing to the strong financial performance [3][12] - The company raised its full-year guidance, now expecting core FFO per share of $2.28-$2.32, reflecting a growth of 7%-9% [16][12] Business Line Data and Key Metrics Changes - Achieved record leasing volume with over 600 transactions totaling 2.9 million sq ft over the trailing 12 months [3][4] - Occupancy rate reached 97.4%, an 80 basis point sequential increase [3][4] - Blended rent spreads exceeded 10%, marking the 15th consecutive quarter of positive rent spreads [4][3] Market Data and Key Metrics Changes - The retail development landscape remains limited nationally, contributing to a robust leasing environment for open-air outlet and lifestyle centers [4][5] - The company noted strong traffic creation in markets with ongoing residential growth, particularly in suburban areas [5][10] Company Strategy and Development Direction - The company is focused on enhancing its leasing strategy, with a target of 80% renewals and increased re-tenanting activity [4][36] - The acquisition of Legends Outlets in Kansas City for $130 million aligns with the company's strategy to acquire well-located retail centers [13][8] - The company is leveraging AI technology to optimize customer service and enhance data analytics [8][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver compelling results, supported by a strong balance sheet and conservative leverage [11][15] - The company anticipates continued opportunities for growth, particularly in enhancing the merchandise mix and driving traffic to shopping centers [5][10] - Management highlighted the importance of marketing initiatives to drive customer traffic, especially during key shopping seasons [29][30] Other Important Information - The company has seen a 50% increase in re-tenanting activity over the trailing 12 months compared to the prior year [4][3] - The company is actively working on its 2026 lease roll, indicating a proactive approach to future leasing strategies [5][4] Q&A Session Summary Question: Can you discuss the opportunities for shifting temporary space given the high occupancy rate? - Management emphasized the strategic importance of temporary tenancy, noting that they have increased their leasing representatives to manage this effectively [19][20] Question: What does the acquisition pipeline look like given current debt market conditions? - Management indicated that the acquisition strategy is focused on adding value and that the market remains active with various capital sources available [25][26] Question: Can you elaborate on the marketing initiatives and their impact on traffic? - Management highlighted the importance of traffic generation and discussed successful campaigns like early back-to-school promotions that drove customer engagement [29][30] Question: What are the expectations for occupancy and leasing trends heading into 2026? - Management expressed optimism about maintaining higher year-over-year occupancy and the strategic use of temporary tenants to fill vacancies [96][95]