Company Overview - Tanger is a leading owner and operator of outlet and open-air retail shopping destinations with over 40 retail centers and 16 million square feet of space[7,8] - The company has a market capitalization of $3.6 billion and an enterprise value of $5.3 billion[7] - Tanger's net debt to adjusted EBITDAre is 5.0x, and interest coverage ratio is 4.6x[7] - The portfolio is 95% open air and 93% of outlet square footage is in leading tourist destinations or top 50 MSAs[7] Financial Performance and Growth - The company anticipates 2025 Same Center NOI growth between 2.5% and 4.0%[17] - Tenant sales per square foot were $465 in 2Q25 TTM[17] - Rent spreads were up 12.0% in 2Q25 TTM[17] - Core FFO per share 3-year average growth is 7.5%[17] - The company expects net income per diluted share to be between $0.93 and $1.00, and Core FFO per diluted share to be between $2.24 and $2.31 for 2025[41] Balance Sheet and Capital Structure - The company's capital structure includes $3.6 billion in equity and $1.7 billion in net debt[31] - The company has $528 million in line availability and $70 million in undrawn forward equity[31] - 87% of the company's financing is unsecured[33] - 95% of the company's debt is fixed rate[33] Portfolio and Operating Metrics - The company's occupancy rate is 96.6%[56] - Blended cash rent spreads for executed comparable leases increased by 12.0%[56] - Same Center NOI increased by 3.8% in 2Q25 compared to 2Q24[56]

Core Insights - Tanger (SKT) reported quarterly funds from operations (FFO) of $0.58 per share, exceeding the Zacks Consensus Estimate of $0.56 per share, and up from $0.53 per share a year ago, indicating a positive performance trend [1][2] - The company achieved revenues of $133.44 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.18% and showing an increase from $122.32 million year-over-year [2] - Tanger has outperformed consensus FFO estimates three times in the last four quarters and has topped revenue estimates four times in the same period [2] Financial Performance - The FFO surprise for the recent quarter was +3.57%, while the previous quarter's FFO matched expectations with no surprise [1] - The current consensus FFO estimate for the upcoming quarter is $0.58 on revenues of $135.74 million, and for the current fiscal year, it is $2.24 on revenues of $536.94 million [7] Market Position - Tanger shares have underperformed the market, losing approximately 13.5% since the beginning of the year, compared to a 6.1% gain in the S&P 500 [3] - The Zacks Industry Rank places the REIT and Equity Trust - Retail sector in the top 32% of over 250 Zacks industries, suggesting a favorable industry outlook [8] Future Outlook - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call and the trends in estimate revisions [3][4] - The estimate revisions trend for Tanger was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6]

Acquisition Overview - Sky New Zealand will acquire 100% of Discovery NZ from Warner Bros Discovery for $1 on a cash-free, debt-free basis[2] - The acquisition is expected to be completed on August 1, 2025[2] Strategic Benefits for Sky - The acquisition is expected to deliver approximately $95 million in annualised revenue uplift, with about 25% from digital sources[5] - Sky's combined total linear television advertising revenue share is expected to grow to approximately 35%[5] - Sky's total digital television advertising revenue share is expected to grow to approximately 24%[5] - Sky anticipates achieving sustainable EBITDA growth of at least $10 million from FY28[5, 7] Discovery NZ Assets - Discovery NZ owns and operates the ThreeNow BVOD streaming platform and the free-to-air linear channel Three[3, 5] Integration and Financials - Net integration costs for Sky are expected to be approximately $6.5 million[8] - Sky remains confident in achieving its 30cps dividend target for FY26[9]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - Tanger Inc. (NYSE: SKT) is highlighted for its very high occupancy rates, suggesting potential investment opportunities [2] Group 2 - The article emphasizes the importance of patience when investing in high-quality stocks that may be overvalued [2]

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]

Core Viewpoint - Five publicly traded real estate investment trusts (REITs) in the US announced increases to their regular dividend payments in April, indicating a positive trend in the sector [2] Group 1: Dividend Increases - Tanger Inc. (SKT) declared the largest percentage increase in quarterly dividend among the five REITs [2]

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 ...