Core Insights - Dividend investors should be selective, looking for reasonable yields, a strong dividend history, profitability, and growth potential [1] Company Analysis: Tanger - Tanger operates 42 outlet and open-air retail centers in the U.S. and Canada, achieving its highest occupancy rate in over a decade in 2024 [3] - The company has opportunities to increase rents as over 40% of its rental base is due for renewal in the next two years [3] - Tanger is expanding its property portfolio through acquisitions, including a $73 million shopping center in Little Rock and a $167 million mixed-use center in Cleveland [4] - The company maintains a healthy balance sheet with $1.5 billion in net debt, mostly at fixed rates, and no debt maturities this year [5] - Tanger pays a quarterly dividend of $0.275 per share, yielding about 3%, and expects core funds from operations to grow by up to 8% in 2025, indicating potential for a dividend increase [6][7] Company Analysis: Target - Target reported a 2% increase in comparable sales during the holiday season, with digital sales up 9% and significant growth in same-day delivery [8] - The company anticipates adjusted earnings per share between $8.30 and $8.90 for 2024, resulting in a price-to-earnings ratio of about 15 [9] - Target has a long dividend history, currently paying a quarterly dividend of $1.12 per share, yielding approximately 3.5% [10] - The company faces challenges from tariffs and inflation, similar to its competitor Walmart, which may impact its outlook for 2025 [11] - Target's shares have declined over 50% from their all-time high, but improving sales in key categories make it attractive for long-term dividend investors [12]

Company Overview - Tanger (SKT) is headquartered in Greensboro and operates in the Finance sector, with a year-to-date stock price change of 1.35% [3] - The company currently pays a dividend of $0.28 per share, resulting in a dividend yield of 3.18%, which is lower than the REIT and Equity Trust - Retail industry's yield of 4.17% but higher than the S&P 500's yield of 1.52% [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 2.01% over the last 5 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 expects solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $2.23 per share, reflecting a year-over-year growth rate of 4.69% [5] Investment Considerations - Tanger is viewed as a compelling investment opportunity due to its strong dividend profile, despite being in a market where high-yielding stocks may face challenges during periods of rising interest rates [7] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [7]

Financial Data and Key Metrics Changes - Full-year core FFO per share increased by 8.7% year-over-year, reaching $2.13 per share, driven by a 5.1% increase in same center NOI [8][20] - Same center NOI for Q4 increased by 3%, reflecting higher rental revenues due to strong retailer demand and leasing activity [21] - Center occupancy at year-end was 98%, up 70 basis points year-over-year, with same center occupancy at 98.2%, up 90 basis points for the year [10][21] Business Line Data and Key Metrics Changes - Comparable sales for the trailing 12-month period grew approximately 1% year-over-year, reaching $444 per square foot on a total portfolio basis [9] - The company completed 473 transactions across 2.1 million square feet, achieving total rent spreads of 50% [11] - New and expanded tenant categories, including restaurants and beauty brands, contributed to the success of the portfolio [9] Market Data and Key Metrics Changes - The company added five centers over the past two years, increasing GLA by approximately 2.2 million square feet and generating over $50 million in first-year NOI [12] - Recent acquisitions include The Promenade at Chenal for $73 million and Pinecrest for $167 million, both expected to deliver an approximate 8% return in their first year [22] Company Strategy and Development Direction - The company aims to continue growth through existing and newly acquired centers, focusing on high-quality assets in markets with population and employment growth [16] - The strategy includes targeting dominant open-air specialty retail centers to create additional value through leasing, marketing, and operations [17] - The company remains confident in the outlet channel, emphasizing its value proposition for both retailers and shoppers [17] Management's Comments on Operating Environment and Future Outlook - Management noted strong consumer demand and traffic growth, with retailers planning to expand rather than pull back [44][45] - The company introduced guidance for 2025, projecting core FFO per share growth of 4% to 8% and same-center NOI growth of 2% to 4% [26][27] - Management expressed optimism about leveraging their platform for growth in newly acquired centers, despite some vacancies and re-merchandising opportunities [47] Other Important Information - The company ended the year with low leverage and ample liquidity, with $56 million in cash and full availability under $620 million unsecured lines of credit [25] - The annualized cash dividend remains well covered, with a payout ratio of 61% of funds available for distribution [25] Q&A Session Summary Question: Capital needs for this year and acquisition pipeline - Management indicated that the ATM is for future liquidity and that they are actively working on potential deals, with a strong balance sheet to support capital deployment [30][32][33] Question: Changes in demand or spending patterns - Management reported strong consumer performance and retailer confidence, despite weather-related challenges in January [44][45] Question: Lease expiration schedule and renewal conversations - Management stated there are no significant risks regarding retention rates, focusing on replacing weaker retailers with stronger ones [52][53] Question: Future growth from lifestyle centers - Management confirmed ongoing interest in acquiring lifestyle centers, emphasizing the importance of adding value through operations and marketing [56][60] Question: Fixed CAM and its impact on results - Management noted that most tenants are on a fixed CAM basis, contributing to higher rent spreads and overall revenue growth [63][64] Question: Impact of competitors and market dynamics - Management acknowledged competition in every market but expressed confidence in their positioning and growth potential due to surrounding developments [153][155] Question: Acquisitions and pricing strategy - Management emphasized that acquisitions are focused on adding value, with an 8% yield being a target but not the sole criterion for decisions [130][132]

FEBRUARY 19, 2025 Management Presentation FOURTH QUARTER 2024 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. Tanger Inc. (the "Company") intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Li ...

Group 1 - The article emphasizes the importance of innovation and disruption in the financial sector, particularly focusing on high-tech and early growth companies [1] - It highlights the potential investment opportunities in growth buyouts and value stocks, suggesting a strategic approach to investment [1] Group 2 - The author expresses a beneficial long position in SKT shares, indicating confidence in the company's future performance [2] - The article does not provide specific investment recommendations, maintaining a neutral stance on the suitability of investments for individual investors [3]

Core Viewpoint - The investment in Tanger Factory Outlet Centers has yielded over 500% returns since early 2020, indicating strong recovery and potential for further growth in the retail real estate sector [1]. Company Summary - Tanger Factory Outlet Centers was significantly impacted during the COVID-19 stock market crash, experiencing a sharper decline compared to other sectors [1]. - The investment in Tanger has proven to be highly profitable, with returns exceeding 500% not accounting for dividends [1]. Industry Summary - The retail real estate sector faced severe challenges during the initial COVID-19 pandemic, leading to substantial stock price declines [1]. - Despite the past challenges, there is optimism regarding the continued potential for growth in retail real estate investments [1].

Group 1 - The core viewpoint is that Tanger (SKT) has experienced significant selling pressure, resulting in a 7.2% decline over the past four weeks, but it is now in oversold territory, indicating potential for a rebound [2][6] - The Relative Strength Index (RSI) for SKT is currently at 29.46, suggesting that the stock is nearing a reversal point as the heavy selling appears to be exhausting itself [6] - Analysts have raised earnings estimates for SKT by 0.4% over the last 30 days, which typically correlates with price appreciation in the near term [4] Group 2 - SKT holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [4] - The combination of technical indicators like RSI and positive earnings revisions suggests that SKT may soon return to its previous equilibrium of supply and demand [6]

Core Viewpoint - Tanger (SKT) shares have recently declined by 5.4% over the past two weeks, but the formation of a hammer chart pattern suggests potential support and a possible trend reversal in the future [1] Technical Analysis - The hammer chart pattern indicates a small candle body with a long lower wick, signaling that bears may be losing control and that a trend reversal could occur [3] - This pattern typically forms during a downtrend when the stock opens lower, makes a new low, but then closes near or above the opening price, suggesting buying interest [3] Fundamental Analysis - There has been a positive trend in earnings estimate revisions for SKT, with the consensus EPS estimate increasing by 0.4% over the last 30 days, indicating bullish sentiment among analysts [5] - SKT holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which historically outperforms the market [5] - The Zacks Rank serves as a timing indicator, suggesting that SKT's prospects are improving, further supporting the potential for a turnaround [5]

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) has successfully navigated a reshuffling of the retail sector, indicating resilience in its business model [2] Group 2 - The article emphasizes the importance of performing due diligence and drawing personal conclusions before making investment decisions [4] - Seeking Alpha clarifies that past performance does not guarantee future results and that the views expressed may not reflect the platform's overall stance [5]

Financial Data and Key Metrics Changes - Core FFO for Q3 2024 reached $0.54 per share, an 8% increase from the prior year period, supported by a 4.3% increase in same-center NOI [5][13] - Net debt to adjusted EBITDA per share was 5 times for the 12 months ended September 30, down from 5.8 times at the end of last year [14][15] - The company raised its core FFO per share expectations for 2024 to a range of $2.09 to $2.13, representing core FFO growth of 7% to 9% [17] Business Line Data and Key Metrics Changes - Average tenant sales productivity remained steady at $438 per square foot for the trailing 12 months [6] - The leasing team executed 543 leases totaling 2.6 million square feet over the trailing 12 months, achieving a blended increase of 14% on comparable space [8] Market Data and Key Metrics Changes - The occupancy rate ended the quarter at 97.4% [8] - The company experienced positive momentum in sales, with a focus on attracting a broader, younger, and more affluent demographic [7] Company Strategy and Development Direction - The company is focused on remerchandising efforts to attract sought-after brands and diversify its tenant mix, which is driving consistent traffic to its centers [6][7] - The strategy includes enhancing digital marketing capabilities and community engagement initiatives to connect with younger shoppers [7] - The company is actively pursuing both marketed and off-market transactions across outlet and open-air lifestyle centers [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategy and the ability to deliver solid results, citing robust demand for space and a strong balance sheet [11][14] - The management noted that the early read on holiday shopping is positive, with consumers shopping early and a strong performance expected from discount channels [20] Other Important Information - The company successfully responded to recent hurricanes with minor physical impacts across its portfolio, and its Asheville Center served as a staging location for first responders [9][10] - The board welcomed Sonia Syngal, bringing nearly 30 years of retail industry experience, which is expected to strengthen the board's capabilities [11] Q&A Session Summary Question: Concerns about tariffs and lower US consumption - Management acknowledged the cyclical nature of the business but noted positive early signs for holiday shopping, with consumers shopping early and a strong performance expected from discount channels [20] Question: Progress on retaining aspirational brands - Management highlighted the success of Sephora as a new brand in their centers, attracting a younger customer base and driving traffic [22][25] Question: Future leasing spreads - Management indicated that they expect to continue generating positive leasing spreads, with opportunities to grow into low double digits [28] Question: Acquisition pipeline opportunities - Management noted ongoing activity in both marketed and off-market transactions across various types of centers [28] Question: Expense recoveries and trends - Management discussed the factors affecting expense recovery rates and expressed confidence in maintaining efficiency while driving revenue [31][34] Question: New brands and re-tenanting process - Management provided insights into the success of new brands like Birkenstock and the strategy for diversifying the tenant mix [37] Question: Capital deployment opportunities - Management emphasized the focus on activating peripheral land and the thoughtful approach to capital allocation [38] Question: Impact of hurricanes on Q4 - Management stated that there should be no significant impact on Q4 results due to the brief closure of the Asheville Center [52] Question: Target leverage range - Management confirmed a target net debt to EBITDA range of 5 times to 6 times [53]