Tanger (SKT) 2025 Conference Summary Company Overview - Tanger is a retail-focused Real Estate Investment Trust (REIT) with 44 years of history, 32 years listed on NYSE, and a significant presence in the outlet sector with 37 outlets in the U.S. and 2 in Canada [3][4] - The company has expanded into the open-air lifestyle business with three centers located in Huntsville, Alabama, Little Rock, Arkansas, and Cleveland, Ohio [4] Financial Highlights - Tanger has an equity value of approximately $4 billion and an enterprise value of $5.7 billion, with a low leverage ratio of about 5x debt to EBITDA [4] - The company has delivered same-center Net Operating Income (NOI) growth of approximately 5% over the last four years, with guidance for 2025 set at 2% to 4% [7] - Funds From Operations (FFO) growth guidance for 2025 is between 4% to 8%, which would be the highest in the retail sector [7] - A recent dividend increase of 6.5% aligns with free cash flow, maintaining a low payout ratio of 60% compared to the sector average of 75% [7] Growth Strategy - The growth strategy is based on three pillars: internal growth through remerchandising, intensifying existing real estate, and external growth through acquisitions [5][6] - Over the last 18 months, Tanger has invested approximately $650 million into five new assets, including a new outlet center in Nashville, Tennessee [6] Retail Environment Insights - Retailers are optimistic despite concerns about tariffs, with over 90% indicating a focus on supply chain diversity post-COVID [10][11] - The outlet business is evolving, with retailers using it to clear excess inventory and as a utility for brand exposure [14][31] - The company sees a shift in consumer behavior, with local customers becoming increasingly important due to remote work trends [17] Customer Experience and Remerchandising - Tanger has adapted its centers to enhance customer experience by adding food and beverage options, entertainment venues, and experiential retail [18][22] - The Nashville center exemplifies this shift, featuring a community gathering space and a mix of local food and beverage options [21] Tenant Management and Leasing Strategy - The company is proactive in managing its tenant portfolio, replacing underperforming tenants like Forever 21 with brands that align with current consumer trends [26] - Food and beverage now represent 7.5% of the shopping center area, indicating a strategic pivot towards diverse tenant categories [25] Market Position and Competitive Advantage - Tanger's open-air format allows for lower operational costs compared to traditional malls, with a CapEx load of about 15% of NOI, significantly lower than other retail formats [30][32] - The company benefits from a lack of new retail development in the U.S., making existing spaces more valuable [24][42] Acquisition Strategy and Financial Capacity - Recent acquisitions have yielded initial returns of 8% to 8.5%, with a focus on properties that can enhance the overall portfolio [42] - Tanger has a low leverage ratio and significant forward equity capacity, allowing for continued investment in unique acquisition opportunities [43] Conclusion - Tanger is well-positioned in the retail real estate market, leveraging its unique outlet format, proactive tenant management, and strategic growth initiatives to drive value for shareholders [39][43]

Financial Data and Key Metrics Changes - The company reported a core FFO of $0.53 per share for Q1 2025, an increase from $0.52 per share in the same quarter of the previous year [13] - Same center NOI increased by 2.3% for the quarter, driven by higher rental revenues and ancillary revenues [13][17] - The company ended the quarter with a net debt to adjusted EBITDAre ratio of 5.2 times, indicating a well-positioned balance sheet [14] Business Line Data and Key Metrics Changes - Sales for the trailing twelve months averaged $455 per square foot, reflecting a positive trend due to strategic merchandising and tenant replacement [6] - Occupancy rate was reported at 95.8%, showing a seasonal decline but aligned with the strategy to replace less productive tenants [6][7] - Leasing activity remained strong with 2.5 million square feet executed over the trailing twelve months, and renewals executed or in process totaled 57% [7] Market Data and Key Metrics Changes - The company acquired Pinecrest, a lifestyle center in Cleveland, for $167 million, enhancing its portfolio [13] - The company sold a non-core center in Howell, Michigan, for $17 million, recognizing a non-cash impairment charge of $4.2 million [14] Company Strategy and Development Direction - The company is focused on elevating and diversifying its centers with in-demand retailers, restaurants, and entertainment options [10] - A marketing initiative, "Tanger Deal Days," was launched to reinforce value messaging and drive traffic during the summer selling season [11] - The company aims to optimize its digital capabilities to enhance customer insights and analytics, facilitating targeted promotions [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning despite macroeconomic uncertainties, emphasizing a nimble approach to evolving consumer landscapes [10] - The company anticipates continued same center NOI growth in the range of 2% to 4% for the year [17] - Management noted strong traffic trends leading into the summer season, with a positive outlook for back-to-school sales [26][92] Other Important Information - The company approved a 6.4% increase in the annual dividend from $1.10 to $1.17 per share, maintaining a 53% payout ratio [17] - The company is actively engaging with financial stakeholders through property tours and conferences to showcase its strategy and performance [18] Q&A Session Summary Question: Impact of macro uncertainty on temporary occupancy - Management indicated that temporary occupancy is a strategy, particularly through pop-up stores, which allows brands to test the outlet market before committing to long-term leases [22][23] Question: Retailers' inventory expectations for the second half of the year - Management reported no significant inventory issues among retailers and is proactively promoting back-to-school sales starting in June [26] Question: Anticipated occupancy impacts from proactive remerchandising - Management acknowledged that remerchandising efforts may temporarily affect occupancy but are necessary for long-term growth [32][34] Question: Updates on Forever 21 store closures - Management confirmed ongoing communication with Forever 21 and plans for temporary replacements, expecting no material decline in rent from these changes [35] Question: Trends in foot traffic since tariff uncertainty - Management noted strong traffic in April, indicating resilience despite earlier concerns related to macroeconomic factors [92] Question: Sensitivity of NOI to changes in tenant sales - Management clarified that while percentage rents have declined, the overall sales productivity and fixed rents are driving higher NOI [95][96] Question: Jewelry category performance amid diamond price fluctuations - Management reported strong performance in the jewelry category, particularly with brands like Pandora, despite broader market concerns [102]

Financial Data and Key Metrics Changes - The company reported a core FFO of $0.53 per share for the first quarter, an increase from $0.52 per share in the same quarter of the previous year [14] - Same center NOI increased by 2.3% for the quarter, driven by higher rental revenues and ancillary revenues [14][17] - The net debt to adjusted EBITDAre ratio was 5.2 times at quarter end, indicating a well-positioned balance sheet [15] Business Line Data and Key Metrics Changes - Sales for the trailing twelve-month period averaged $455 per square foot, reflecting an increase due to strategic merchandising and tenant replacement [7] - Occupancy at the end of the quarter was 95.8%, showing a seasonal decline but part of a strategy to replace less productive tenants [7][9] - Leasing activity remained strong with 2.5 million square feet executed over the trailing twelve months, and renewals executed or in process totaled 57% [9] Market Data and Key Metrics Changes - The company is expanding into new categories and welcoming new brands to diversify offerings, which is resonating with a wider shopper demographic [8] - The company’s marketing initiatives, such as the Tanger Deal Days campaign, aim to reinforce value messaging and drive traffic during the summer selling season [12] Company Strategy and Development Direction - The company is focused on elevating and diversifying its centers with desirable retailers, restaurants, and entertainment options [11] - The acquisition of Pinecrest in Cleveland for $167 million is part of the external growth strategy, alongside the sale of a non-core center in Howell, Michigan [14][15] - The company aims to maintain a conservatively leveraged balance sheet while generating strong free cash flow to pursue growth opportunities [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company’s positioning despite macroeconomic uncertainties, emphasizing a nimble approach to evolving consumer landscapes [11] - The company anticipates continued strong traffic leading into the summer selling season, with proactive marketing strategies to encourage early shopping [6][12] - Management remains optimistic about the flow of inventory to outlet channels, expecting retailers to rely more heavily on outlets for excess inventory [76] Other Important Information - The Board of Directors approved a 6.4% increase in the annual dividend from $1.10 to $1.17 per share, with a 53% payout ratio [17] - The company is actively engaging with financial stakeholders through property tours and conferences to showcase its strategy and execution [18] Q&A Session Summary Question: Impact of macro uncertainty on temporary occupancy - Management indicated that temporary occupancy is a strategy, with pop-up stores being a successful example of adapting to market conditions [22][23] Question: Retailers' inventory expectations for the second half of the year - Management reported no significant inventory issues among retailers and is promoting back-to-school sales earlier to encourage shopping [25][26] Question: Anticipated occupancy impacts from proactive remerchandising - Management acknowledged that remerchandising is affecting occupancy but expects it to improve as new tenants are introduced [31][34] Question: Update on Forever 21 store closures - Management confirmed ongoing communication with Forever 21 and has lined up temporary replacements for the vacated spaces [36] Question: Trends in foot traffic since tariff uncertainty - Management noted strong traffic in April, indicating resilience despite earlier concerns related to macroeconomic factors [94] Question: Sensitivity of NOI to tenant sales changes - Management explained that while percentage rents have declined, the overall sales productivity and fixed rents are driving higher NOI [96][97] Question: Jewelry category performance amid diamond price fluctuations - Management reported positive trends in the jewelry category, particularly with brands like Pandora, despite broader market concerns [103]

Core Insights - Tanger reported quarterly funds from operations (FFO) of $0.53 per share, matching the Zacks Consensus Estimate and showing a year-over-year increase from $0.52 per share [1] - The company achieved revenues of $129.29 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 4.13% and up from $117.81 million a year ago [2] - The stock has underperformed, losing about 8% since the beginning of the year compared to the S&P 500's decline of 5.5% [3] Financial Performance - FFO for the previous quarter was expected to be $0.52 per share, but the actual result was $0.54, resulting in a surprise of 3.85% [1] - Over the last four quarters, Tanger has surpassed consensus FFO estimates three times [1] - The current consensus FFO estimate for the upcoming quarter is $0.56, with expected revenues of $128.23 million, and for the current fiscal year, the estimate is $2.26 on revenues of $516.55 million [7] Market Outlook - The estimate revisions trend for Tanger is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] - The REIT and Equity Trust - Retail industry is ranked in the top 31% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Management Presentation APRIL 30, 2025 Tanger Outlets Phoenix Safe Harbor Statements Certain statements made in this presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 199 ...

Company Overview - Tanger (SKT) is headquartered in Greensboro and operates in the Finance sector, with a year-to-date stock price change of -9.29% [3] - The company currently pays a dividend of $0.28 per share, resulting in a dividend yield of 3.55%, which is lower than the REIT and Equity Trust - Retail industry's yield of 4.57% and the S&P 500's yield of 1.68% [3] Dividend Performance - Tanger's current annualized dividend of $1.10 has increased by 1.4% from the previous year, with an average annual increase of 7.18% over the past five years [4] - The company's payout ratio stands at 52%, indicating that it distributes 52% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, Tanger anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $2.26 per share, reflecting a year-over-year earnings growth rate of 6.10% [5] Investment Appeal - Tanger is viewed as an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 2 (Buy) [7]

Core Viewpoint - The stock price of Tanger Inc. (NYSE: SKT) experienced significant volatility due to investor reactions to new tariffs announced by the Trump Administration [1] Company Summary - Tanger Inc. is facing challenges in its stock performance as a result of external economic factors, specifically new tariffs [1] Industry Summary - The announcement of tariffs has led to extreme investor reactions, indicating a sensitive market environment that could impact various sectors, including retail and real estate [1]

Group 1 - Tanger's shares have performed well, nearing the highs of the 2010s despite challenges in physical shopping [1] - The company's success is attributed to conservative leverage usage and the effects of inflation [1] - The investing group "Value In Corporate Events" offers members opportunities related to IPOs, mergers & acquisitions, and earnings reports [1]

Core Viewpoint - Tanger (SKT) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on an upward trend in earnings estimates, which significantly influences stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are closely correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - For the fiscal year ending December 2025, Tanger is projected to earn $2.25 per share, reflecting a 5.6% increase from the previous year, with a 1.3% rise in the Zacks Consensus Estimate over the past three months [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly Zacks Rank 1 stocks averaging a +25% annual return since 1988 [7]. - The upgrade of Tanger to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

Core Viewpoint - Outlet shopping is experiencing a resurgence, and Tanger Factory Outlet Centers may have significant growth opportunities ahead [1] Company Summary - Tanger Factory Outlet Centers has reported positive results, indicating a potential for continued success in the outlet retail sector [1] Industry Summary - The initial predictions regarding the decline of brick-and-mortar retail have proven to be exaggerated, suggesting a robust future for physical retail spaces, particularly in the outlet segment [1]