Financial Performance - Total revenues for Q1 2023 were $108,943, a slight increase of 0.1% compared to $108,868 in Q1 2022[27] - Net income attributable to Tanger Factory Outlet Centers, Inc. for Q1 2023 was $23,541, representing a 14.8% increase from $20,518 in Q1 2022[27] - Basic and diluted earnings per share for Q1 2023 were both $0.22, up from $0.20 and $0.19 respectively in Q1 2022[27] - Net income for the three months ended March 31, 2023, was $24,860,000, an increase of 15.5% compared to $21,462,000 in the same period of 2022[39] - Net income for the three months ended March 31, 2023, was $4.014 million, down from $5.051 million in the prior year, indicating a decrease of 20.6%[75] - The company reported a net income of $23,541,000 for the three months ended March 31, 2023, compared to $20,518,000 for the same period in 2022, representing an increase of approximately 9.8%[103] - Net income for Q1 2023 was $24,860,000, compared to $21,462,000 in Q1 2022, marking an increase of 11.2%[220] Assets and Liabilities - Total assets decreased to $2,185,392 as of March 31, 2023, down from $2,217,665 at the end of 2022[25] - Total liabilities decreased to $1,679,086 as of March 31, 2023, compared to $1,703,731 at the end of 2022[25] - Total debt remained stable at $1,427,941 as of March 31, 2023, slightly down from $1,428,494 at the end of 2022[25] - Total assets as of March 31, 2023, were $2,184,575,000, a decrease from $2,217,011,000 as of December 31, 2022[37] - Total liabilities decreased to $1,678,269,000 as of March 31, 2023, from $1,703,077,000 at the end of 2022[37] - Total debt as of March 31, 2023, was $1,427,941,000, slightly down from $1,428,494,000 at the end of 2022[37] Cash and Cash Equivalents - Cash and cash equivalents decreased to $202,821 as of March 31, 2023, from $212,124 at the end of 2022[25] - Cash and cash equivalents at the end of Q1 2023 were $202,821,000, compared to $152,847,000 at the end of Q1 2022, reflecting a year-over-year increase of 32.7%[35] - Cash and cash equivalents at the end of the period were $202.629 million, up from $152.578 million in the previous year, marking a year-over-year increase of 32.8%[50] Operating Activities - Net cash provided by operating activities increased to $25,574,000 in Q1 2023 from $18,854,000 in Q1 2022, representing a growth of 35.7%[35] - Net cash provided by operating activities increased to $25.495 million from $18.688 million, representing a growth of 36.5% year-over-year[50] - The company reported total fees from unconsolidated joint ventures of $1.667 million for the three months ended March 31, 2023, compared to $1.527 million in the same period of 2022, an increase of 9.2%[71] Revenue Breakdown - Total revenues for Q1 2023 were $108,943,000, slightly up from $108,868,000 in Q1 2022, with rental revenues at $103,582,000, down from $104,609,000[39] - Rental revenues for the three months ended March 31, 2023, totaled $103,582 thousand, a slight decrease from $104,609 thousand in the same period of 2022[129] - Fixed rental revenues increased to $81,887 thousand in Q1 2023 from $81,312 thousand in Q1 2022, while variable rental revenues decreased to $21,695 thousand from $23,297 thousand[129] Expenses - The company reported property operating expenses of $33,148 for Q1 2023, down from $36,758 in Q1 2022[27] - General and administrative expenses increased to $17,434 in Q1 2023, compared to $15,467 in Q1 2022[27] - Property operating expenses decreased by $3.6 million to $33.148 million in 2023 from $36.758 million in 2022, primarily due to lower snow removal costs and timing of advertising expenses[155] - General and administrative expenses increased by $2.0 million in 2023, mainly due to hiring key employees and additional operational expenses[156] Dividends - Cash dividends paid in Q1 2023 totaled $24,623,000, compared to $19,315,000 in Q1 2022, marking an increase of 27.5%[35] - The company declared a cash dividend of $0.22 per common share payable on February 15, 2023, to shareholders of record on January 31, 2023[95] - The company declared a cash dividend of $0.245 per common share, payable on May 15, 2023, to shareholders of record on April 28, 2023[133] Development and Expansion - The company is developing a new outlet center in Nashville, Tennessee, with an estimated total net cost of $142 million to $150 million, and costs incurred to date amounting to $62.8 million[68] - The Nashville outlet center, expected to open in Q3 2023, has incurred costs of $62.8 million with an estimated total cost of $142.0 million to $150.0 million[181] - The company has one center under construction and continues to explore new outlet center developments[140] Joint Ventures - The company has partial ownership interests in six unconsolidated outlet centers totaling approximately 2.1 million square feet[53] - The company’s equity in earnings of unconsolidated joint ventures improved to $(1.935) million from $(2.513) million year-over-year[50] - As of March 31, 2023, the carrying value of investments in unconsolidated real estate joint ventures was $73.4 million for RioCan Canada and negative values for other joint ventures, totaling $(51.4) million[70] Debt and Financing - The Company guarantees the Operating Partnership's obligations with respect to unsecured lines of credit totaling $520.0 million as of March 31, 2023[76] - The total principal amount of debt guaranteed by the Company was $325.0 million as of March 31, 2023, unchanged from December 31, 2022[77] - The company maintains unsecured lines of credit providing for borrowings of up to $520.0 million, with a potential increase to $1.2 billion through an accordion feature[197] - Scheduled maturities of existing long-term debt for 2023 and 2024 are $3.6 million and $5.1 million, respectively, with a significant maturity of $625.0 million in 2027[190] Performance Metrics - Funds From Operations (FFO) is a key performance measure for the company, excluding depreciation and amortization related to real estate[211] - FFO for the three months ended March 31, 2023, was $52,702,000, compared to $49,877,000 for the same period in 2022, reflecting an increase of 5.5%[220] - Core FFO available to common shareholders for Q1 2023 was $51,230,000, up from $49,443,000 in Q1 2022, indicating a growth of 3.6%[220] - FFO per share - diluted increased to $0.47 in Q1 2023 from $0.45 in Q1 2022, representing a 4.4% rise[220] - Core FFO per share - diluted also rose to $0.46 in Q1 2023, consistent with the previous year’s figure of $0.45[220] Other Comprehensive Income - The company recognized a loss of $3,426,000 in other comprehensive income related to interest rate swaps for the three months ended March 31, 2023, compared to a gain of $7,674,000 for the same period in 2022[89] - The accumulated other comprehensive income (loss) for Tanger Factory Outlet Centers, Inc. was $(24,361) thousand, a decrease from $(24,516) thousand as of December 31, 2022[124] - The balance of accumulated other comprehensive income (loss) for the Operating Partnership as of March 31, 2023, was $(25,703) thousand, compared to $(25,867) thousand as of December 31, 2022[126]

Financial Data and Key Metrics Changes - The company reported Core FFO of $0.46 per share, an increase from $0.45 in the prior year period [13] - Same center NOI for the total portfolio increased by 7.4% for the quarter, reflecting strong operational performance [13][34] - The weighted average rate on the company's debt at quarter end was 3.5%, with 93% of the debt at fixed rates [15] Business Line Data and Key Metrics Changes - Same center NOI growth was driven by robust leasing activity and effective expense management [7] - The blended average rental rates increased by 13.8% for the trailing 12 months ending March 31, 2023, marking a significant improvement from the previous year [8] - Renewals executed or in process represented 57% of leases expiring this year, approximately 10 percentage points ahead of last year [9] Market Data and Key Metrics Changes - Traffic for the quarter was up 60 basis points compared to the prior year's first quarter, indicating positive momentum [9] - Total gross sales grew in the first quarter of 2023 from the prior year quarter, with average tenant sales improving to $447 per square foot [30] Company Strategy and Development Direction - The company is focused on diversifying its tenant portfolio, adding experiential and food and beverage retailers to enhance customer engagement [40][32] - The Nashville development is over 90% lease committed, with a grand opening anticipated in the fall [12] - The company aims to leverage its media platform for additional revenue opportunities, enhancing marketing efforts to drive traffic and sales [11][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's optimistic outlook, citing strong leasing activity and improved rent spreads [27][28] - The company anticipates deploying between $50 million and $60 million for recurring CapEx across its portfolio, with a focus on tenant allowances and capital improvements [16] - Management noted that the leasing strategy is focused on capturing higher base rents and expense reimbursements, with a strong emphasis on operational efficiency [45] Other Important Information - The company announced an 11.4% increase in its dividend, reflecting continued confidence in its financial performance [33] - The company has no significant debt maturities until 2026, providing flexibility for growth initiatives [14] Q&A Session Summary Question: Inquiry about new tenants and their impact on visits - Management noted that the addition of new food and beverage tenants has positively impacted customer visits and stay time at shopping centers [19][40] Question: Concerns about leasing demand moderation - Management confirmed that there has not been a slowdown in leasing velocity, with retailers optimizing outlet locations as a key strategy [44] Question: Clarification on expense reimbursement rates - Management explained that the first quarter benefited from lower operating expenses and a strong leasing strategy, but recovery rates may adjust throughout the year [45][46] Question: Update on occupancy growth and temporary tenants - Management indicated that temporary occupancy is around 10%, which is higher than historical averages, and they are focused on converting temporary tenants to permanent leases [51][52] Question: Discussion on lease maturities and renewal pace - Management highlighted that 57% of leases expiring this year are in the renewal process, which is a significant improvement from the previous year [57] Question: Insights on external growth opportunities - Management is actively exploring joint ventures and acquisition opportunities to enhance their portfolio and drive growth [77] Question: Update on Rue21's restructuring - Management stated that Rue21 is current on all rents and the relationship remains strong, indicating confidence in addressing any potential issues [90]

Tanger Factory Outlet Centers, Inc. (NYSE:SKT) Citi's 2023 Global Property CEO Conference March 7, 2023 5:00 PM ET Company Participants Michael Bilerman - EVP and CFO Stephen Yalof - President and CEO Doug McDonald - Head of FP&A Conference Call Participants Nick Joseph - Citigroup Michael Bilerman Welcome to the 5 o'clock session at Citi's 28th Annual Global Property CEO Conference. I'm Michael Bilerman, and I'm sitting here with Steve Yalof. We're extraordinarily excited to be here. I'll turn the micropho ...

Portfolio Overview - As of December 31, 2022, the consolidated portfolio consisted of 29 outlet centers with a total gross leasable area of approximately 11.4 million square feet, 97% occupied, containing over 2,200 stores representing approximately 600 store brands[27] - As of December 31, 2022, the consolidated portfolio consists of 29 outlet centers totaling 11.4 million square feet located in 18 states, with an additional center under construction[142] - The company owns interests in six other outlet centers totaling approximately 2.1 million square feet through unconsolidated joint ventures, including two in Canada[142] - The outlet center in Deer Park, New York is the only property that comprises 10% or more of the consolidated total assets as of December 31, 2022[143] Financial Performance - For the year ended December 31, 2022, total rental revenues were $421.4 million, comprising $319.2 million in fixed rental revenues and $102.2 million in variable rental revenues[46] - Net income for 2022 increased to $85.8 million, up $76.3 million from $9.5 million in 2021[217] - Rental revenues rose by $13.7 million in 2022, totaling $421.4 million compared to $407.8 million in 2021, driven by increased occupancy from 93% to 95%[218] - Management, leasing, and other services revenue increased by $746,000 in 2022, totaling $7.2 million compared to $6.4 million in 2021[220] - Property operating expenses increased by $3.2 million in 2022, totaling $143.9 million, primarily due to higher property insurance and taxes[223] - General and administrative expenses rose by $5.7 million in 2022, influenced by higher compensation costs and executive severance costs totaling $2.4 million[225] - The company collected 99% of the deferred rents from tenants due to COVID-19 by December 31, 2022[215] Development and Expansion - The Company broke ground on its 37th center in Nashville, Tennessee, expected to open in Q3 2023, with an estimated total cost of $142.0 million to $150.0 million and a projected stabilized yield of 7.0% to 7.5%[32] - The company is developing a new outlet center in Nashville, Tennessee, as part of its expansion strategy[94] - The company has an ongoing strategy of acquiring, developing, and expanding outlet centers[144] - The company intends to continue evaluating potential developments, expansions, and acquisitions of outlet centers, including a project in Nashville[204] Tenant and Lease Management - The Company has a diverse tenant base, with no single tenant accounting for more than 7% of leasable square feet or 6% of combined rental revenues as of December 31, 2022[46] - The company has a diverse tenant mix, with significant contributions from brands like SPARC Group and Premium Apparel, LLC[167] - The company is actively managing lease expirations to maintain revenue stability and tenant relationships[173] - Leases with outlet center tenants typically have an initial term ranging from 5 to 10 years, with fixed monthly rent and potential upward adjustments based on tenant sales volume[145] - The average initial rent for new leases in 2022 was $31.58 per square foot, reflecting a 10.1% increase compared to 2021[212] - In 2022, renewals of existing leases covered 1,693,000 square feet with an initial rent of $30.72 per square foot, while new tenants occupied 122,000 square feet at $43.47 per square foot[163] Market and Economic Conditions - The company’s financial results for 2020 were materially adversely impacted by COVID-19, but metrics such as traffic to centers and sales reported by tenants returned to near or above pre-pandemic levels in 2021 and 2022[107] - Average overall occupancy rates increased from 95% at the end of 2021 to 97% at the end of 2022, indicating a recovery in tenant performance post-COVID-19[111] - Approximately 47% of the square footage of the consolidated portfolio is located in coastal areas at risk of storm intensity, and 16% is in areas at risk of rising sea levels, which could impact demand for retail space[115] - The company faces competition for the acquisition and development of outlet centers, which may affect its ability to complete identified acquisitions[101] - The company’s operations are significantly dependent on the performance of retail tenants, with potential adverse effects from tenant bankruptcies or early lease terminations[110] Capital and Liquidity Management - The company aims to maintain a conservative leverage position while pursuing new development, expansion, and acquisition opportunities[62] - The company plans to utilize cash from operations, cash equivalents, and existing lines of credit to fund capital expenditures in 2023[63] - The company anticipates sufficient cash flow to cover operating expenses, debt service obligations, and dividend payments in both the short and long term[64] - The company is focused on strengthening its capital and liquidity position by controlling construction and overhead costs and generating positive cash flows[67] - The company is subject to risks associated with debt financing, including potential insufficiency of cash from operating activities to meet required payments[124] Corporate Governance and Social Responsibility - The company integrates ESG practices into its business, focusing on community involvement, energy efficiency, and climate change[84] - The company has a Diversity, Equity, and Inclusion Council, with 82% of field employees identifying as female and 26% of the total workforce being racial minorities[81] - The company is subject to various federal, state, and local regulations, and believes it complies with applicable statutes affecting environmental issues and workplace safety[90] Shareholder Information - The company paid dividends of $0.7150 per share in 2021 and $0.8025 per share in 2022, with a quarterly dividend of $0.22 declared on January 19, 2023, to be paid on February 15, 2023[192] - As of December 31, 2022, the company had approximately $80.0 million remaining under its share repurchase authorization, with no shares repurchased since the plan's authorization[190] - The company operates as a REIT and is required to distribute at least 90% of its taxable income to shareholders, complying with REIT taxable income distribution requirements for the 2022 tax year[192] - The company’s total distributions per common unit for 2022 amounted to $0.8025, with quarterly distributions increasing throughout the year[201] - The company has 346 common shareholders of record as of February 1, 2023[189] - The company’s common shares are traded on the New York Stock Exchange under the ticker symbol "SKT" since May 28, 1993[188] Risks and Challenges - The company may face increased costs and reputational harm due to the growing focus on environmental, sustainability, and social initiatives[116] - The company may face adverse consequences from litigation that could negatively impact financial condition and cash flows[123] - Cybersecurity risks are a concern, as attacks could disrupt business operations and result in the loss of sensitive information[137] - The success of the company significantly depends on its ability to attract and retain key personnel, with potential adverse effects from the loss of key management[122] - The company recorded an impairment charge related to long-lived assets and investments in consolidated joint ventures, with one outlet center having a carrying value of approximately $113.0 million, but no impairment charge was recorded as the carrying amount is deemed recoverable[99] - There were no impairment charges recorded in 2022, following a $7.0 million charge in 2021 related to the Foxwoods outlet center[226]

Tanger Factory Outlet Centers, Inc. (NYSE:SKT) Q4 2022 Earnings Conference Call February 22, 2023 8:00 AM ET Company Participants Ashley Curtis - Investor Relations Stephen Tanger - Executive Chairman Stephen Yalof - President and Chief Executive Officer Michael Bilerman - Chief Financial Officer and Chief Investment Officer Leslie Swanson - Chief Operating Officer Doug McDonald - Senior Vice President, Finance and Capital Markets Conference Call Participants Todd Thomas - KeyBanc Capital Markets Craig Mail ...

Tanger Factory Outlet Centers, Inc. (NYSE:SKT) Q3 2022 Earnings Conference Call November 3, 2022 8:30 AM ET Company Participants Ashley Curtis - Assistant Vice President, Investor Relations Steven Tanger - Executive Chair of the Board Stephen Yalof - Director, President and Chief Executive Officer Doug McDonald - Senior Vice President, Finance and Capital Markets Justin Stein - Executive Vice President, Leasing Conference Call Participants Greg McGinniss - Scotiabank Todd Thomas - KeyBanc Capital Markets Cr ...

Financial Performance & Metrics - Occupancy rate was 949% as of June 30, 2022 [29] - Blended cash rent spreads for executed comparable leases increased by 41% [29] - Same Center NOI increased by 74% year-over-year for the six months ended June 30, 2022 [29] - Tenant sales per square foot reached $450, up 64% from the second quarter of 2021 [29] - The company has manageable debt maturities with an effective interest rate of 32% and an average of 51 years to maturity [90] Portfolio & Development - Tanger's portfolio consists of 37 centers with approximately 140 million total square feet [20, 144] - 90% of the square footage is located in a Top 50 MSA or leading tourism destination [20] - The company broke ground on its 37th shopping center in Nashville in May 2022 [15] - A strategic partnership was launched at Tanger Outlets Palm Beach, the 38th center in the portfolio, with approximately 455,000 square feet [15, 76] Strategic Initiatives - The company executed 17 million square feet in leases from 345 leases in the period [29] - Tanger is focused on accelerating leasing, commercializing marketing, and reshaping operations [14] - The company is pursuing opportunities to generate new revenue streams and unlock additional value in its portfolio [15]

Financial Data and Key Metrics Changes - Core FFO per share increased by 4.7% year-over-year to $0.45 [28] - Same-center NOI for the total portfolio increased by 5.1% to $79.8 million, driven by growth in occupancy and rental rates [28] - Net debt to adjusted EBITDAre improved to 5.3x from 5.6x a year ago [29] - Cash balance as of June 30 was $194 million with full availability on a $520 million revolving credit facility [29] - The midpoint of full-year guidance for core FFO per share was increased to a range of $1.73 to $1.79, reflecting a $0.01 increase from the prior range [31] Business Line Data and Key Metrics Changes - Occupancy rate increased to 94.9%, up 170 basis points year-over-year [12] - Blended rent spreads for all comparable leases were 4.1%, representing a 280 basis point sequential improvement [12] - Retenanting spreads exceeded 10% as demand grows [12] - Nearly 68% of 2022 renewals executed or in process, 780 basis points ahead of the same time last year [14] Market Data and Key Metrics Changes - Sales per square foot for the trailing 12-month period was $450, up 6.4% from the prior comparable period [18] - Traffic remains above pre-pandemic levels, stable compared to last year [17] - Unique engagements by Tanger Loyalty Club members increased by 80% year-over-year [19] Company Strategy and Development Direction - Focus on accelerating leasing, commercializing marketing, and reshaping operations at open-air shopping destinations [11] - Continued investment in growth with new centers in Nashville and Palm Beach [11][23] - Strategic partnership to rebrand and operate an existing outlet center in Palm Beach, with potential equity ownership [24] - Commitment to sustainability with plans to achieve net zero emissions by 2050 [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business's positioning amid macroeconomic uncertainty [25] - Anticipated higher tenant retention leading to lower downtime and retenanting costs [14] - Positive trends expected in the second half of the year despite a more prudent outlook due to economic conditions [52] Other Important Information - The company is actively managing energy and water usage as part of sustainability efforts [20] - The balance sheet is well positioned with no significant debt maturities until April 2024 [29] Q&A Session Summary Question: Details on Nashville leasing and competition - Management indicated that Nashville is a competitive market but is currently about 70% committed in pre-leasing [35][36] Question: Economics of Palm Beach agreement - Management expressed excitement about the Palm Beach project but could not disclose specific economic terms [44] Question: Same-store NOI growth expectations - Management noted that the first half benefited from reserve reversals and is being prudent with second-half expectations [52] Question: Changes in tenant sales numbers - Management attributed the decrease in sales per square foot to increased promotional activity rather than a drop in foot traffic [56][58] Question: Lease structure and terms - Management reported longer lease terms and higher fixed rent bumps, with rent bumps for base rents around 3% [62][66]

United States SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission file number: 1-11986 (Tanger Factory Outlet Centers, Inc.) Commission file number: 333-3526-01 (Tanger Properties Limited Partnership) T ...

Part I [Item 1. Financial Statements](index=6&type=section&id=Item%201%20-%20Financial%20Statements) Provides unaudited consolidated financial statements for Q1 2022, detailing the company's financial position, performance, and cash flows [Financial Statements of Tanger Factory Outlet Centers, Inc.](index=6&type=section&id=Financial%20Statements%20of%20Tanger%20Factory%20Outlet%20Centers%2C%20Inc.) Q1 2022 saw total revenues of **$108.9 million** and net income of **$20.5 million**, with total assets at **$2.13 billion** and debt at **$1.40 billion** Consolidated Balance Sheet Highlights (Tanger Factory Outlet Centers, Inc.) | Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :--- | :--- | :--- | | Total Assets | $2,134,232 | $2,157,384 | | Total Debt | $1,396,537 | $1,397,076 | | Total Liabilities | $1,623,655 | $1,657,595 | | Total Equity | $510,577 | $499,789 | Consolidated Statements of Operations Highlights (Tanger Factory Outlet Centers, Inc.) | Metric | Q1 2022 (in thousands) | Q1 2021 (in thousands) | | :--- | :--- | :--- | | Total Revenues | $108,868 | $100,694 | | Total Expenses | $78,468 | $80,254 | | Net Income | $21,462 | $4,342 | | Net Income Attributable to Company | $20,518 | $4,133 | | Diluted EPS | $0.19 | $0.04 | Consolidated Cash Flow Highlights (Tanger Factory Outlet Centers, Inc.) | Metric | Q1 2022 (in thousands) | Q1 2021 (in thousands) | | :--- | :--- | :--- | | Net Cash from Operating Activities | $18,854 | $31,276 | | Net Cash from Investing Activities | ($3,340) | $2,717 | | Net Cash from Financing Activities | ($23,914) | $82,956 | | Net (Decrease) / Increase in Cash | ($8,408) | $116,889 | [Notes to Consolidated Financial Statements](index=17&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes support financial statements, covering property portfolio, **$1.4 billion** debt, dividends, joint ventures, and accounting policies - As of March 31, 2022, the company owned and operated **30 consolidated outlet centers** (11.5 million sq. ft.) and had partial ownership in **6 unconsolidated outlet centers** (2.1 million sq. ft.)[57](index=57&type=chunk) Debt of the Operating Partnership (as of March 31, 2022) | Debt Type | Principal (in thousands) | Book Value (in thousands) | | :--- | :--- | :--- | | Senior, unsecured notes | $1,050,000 | $1,036,635 | | Mortgages payable | $60,612 | $61,312 | | Unsecured term loan | $300,000 | $298,590 | | **Total** | **$1,410,612** | **$1,396,537** | - In January 2022, the company declared a cash dividend of **$0.1825 per common share**[99](index=99&type=chunk) - As of March 31, 2022, the company had approximately **$60.1 million** remaining available for sale under its At-the-Market (ATM) share offering program[100](index=100&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=38&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes Q1 2022 financial performance, highlighting increased net income, strong occupancy, robust liquidity, and growth in key non-GAAP metrics [General Overview & Leasing Activity](index=39&type=section&id=General%20Overview) Overview of the company's property portfolio, **94.1%** consolidated occupancy, and positive leasing activity with a **1.1%** rent spread - As of March 31, 2022, the portfolio consisted of **30 consolidated outlet centers** in 18 states and **6 unconsolidated outlet centers**[141](index=141&type=chunk) Leasing Activity (Trailing 12 Months Ended March 31) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | **Comparable Space** | | | | Leasing Transactions | 297 | 228 | | Square Feet (in 000's) | 1,498 | 1,170 | | Rent Spread | 1.1% | (7.9)% | | **Total Space (Comparable & Non-Comparable)** | | | | Leasing Transactions | 353 | 246 | | Square Feet (in 000's) | 1,713 | 1,230 | [Results of Operations](index=43&type=section&id=RESULTS%20OF%20OPERATIONS) Q1 2022 net income increased by **$17.1 million** to **$21.5 million**, driven by higher rental revenues, reduced G&A, and lower interest expense - Net income increased by **$17.1 million** to **$21.5 million** in Q1 2022, compared to **$4.3 million** in Q1 2021[156](index=156&type=chunk) Change in Rental Revenues (Q1 2022 vs Q1 2021) | Component | Increase/(Decrease) (in thousands) | | :--- | :--- | | Rental revenues from existing properties | $6,417 | | Lease termination fees | $1,922 | | Rental revenues from properties disposed | ($515) | | Straight-line rent adjustments | ($294) | | Amortization of rent adjustments, net | ($388) | | **Total Increase** | **$7,142** | - General and administrative expenses decreased by **$1.3 million**, partly because the 2021 period included **$2.4 million** in costs related to a voluntary retirement plan and executive severance[161](index=161&type=chunk) - Interest expense decreased by **$2.7 million** due to the redemption of higher-rate senior notes in 2021 and a paydown of the unsecured term loan[164](index=164&type=chunk) [Liquidity and Capital Resources](index=45&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES%20OF%20THE%20OPERATING%20PARTNERSHIP) Strong liquidity of **$672.8 million** as of March 31, 2022, with **96%** unsecured debt and compliance with all debt covenants - Total liquidity as of March 31, 2022 was approximately **$672.8 million**, including cash and full undrawn capacity under its **$520 million** unsecured lines of credit[206](index=206&type=chunk) - As of March 31, 2022, the company was in compliance with all debt covenants, with Total Debt to Adjusted Total Assets at **41%**, below the **60%** threshold[210](index=210&type=chunk)[211](index=211&type=chunk) - The next significant debt maturity is the unsecured term loan due in April 2024[207](index=207&type=chunk) - In April 2022, the Board of Directors declared a cash dividend of **$0.20 per common share**, an increase from the previous quarter[179](index=179&type=chunk) [Non-GAAP Supplemental Measures](index=54&type=section&id=NON-GAAP%20SUPPLEMENTAL%20MEASURES) Reconciles non-GAAP metrics, showing Q1 2022 FFO of **$49.4 million** (**$0.45** per share) and **9.6%** Same Center NOI growth FFO and Core FFO Reconciliation (Q1 2022 vs Q1 2021) | Metric (in thousands, except per share) | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net Income | $21,462 | $4,342 | | Adjustments (Depreciation, etc.) | $28,415 | $34,254 | | **FFO** | **$49,877** | **$38,596** | | FFO available to common shareholders | $49,443 | $38,204 | | **Core FFO available to common shareholders** | **$49,443** | **$40,600** | | FFO per share - diluted | $0.45 | $0.38 | | Core FFO per share - diluted | $0.45 | $0.40 | Same Center NOI Growth (Q1 2022 vs Q1 2021) | Metric (in thousands) | Q1 2022 | Q1 2021 | % Change | | :--- | :--- | :--- | :--- | | Same Center NOI - Consolidated | $71,288 | $65,048 | 9.6% | | Same Center NOI - Total Portfolio | $78,192 | $71,127 | 9.9% | [Economic Conditions and Outlook](index=62&type=section&id=ECONOMIC%20CONDITIONS%20AND%20OUTLOOK) Discusses economic conditions, noting improved **94.3%** portfolio occupancy, active lease renewals, and challenges from inflation and supply chain issues - Total portfolio occupancy improved to **94.3%** as of March 31, 2022, compared to **92.0%** as of March 31, 2021[252](index=252&type=chunk) - As of April 30, 2022, the company had lease renewals executed or in process for **52.4%** of the space scheduled to expire during 2022[249](index=249&type=chunk) - Management acknowledges potential pressures from rising inflation, logistics, and staffing issues on retailers, but notes that sales per square foot for the trailing twelve months were near historical highs[250](index=250&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=63&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Details market risks, primarily interest rate and foreign currency, with only **3%** of debt at variable rates and minimal impact from LIBOR changes - As of March 31, 2022, **3%** of outstanding consolidated debt had variable interest rates, with a **100 basis point** change in LIBOR impacting annual interest expense by approximately **$401,000**[255](index=255&type=chunk) - The company uses interest rate swap agreements to fix rates on debt with notional amounts totaling **$300.0 million**[254](index=254&type=chunk) - The company is exposed to foreign currency risk from its investments in Canadian outlet centers, but generally does not hedge this exposure[261](index=261&type=chunk) [Item 4. Controls and Procedures](index=64&type=section&id=Item%204.%20Controls%20and%20Procedures) CEO and CFO confirm effective disclosure controls and procedures as of March 31, 2022, with no material changes to internal controls - Based on an evaluation as of March 31, 2022, the CEO and CFO concluded that the disclosure controls and procedures for both the Company and the Operating Partnership were effective[262](index=262&type=chunk)[263](index=263&type=chunk) - There were no changes to internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[262](index=262&type=chunk)[263](index=263&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=64&type=section&id=Item%201.%20Legal%20Proceedings) Discusses routine legal proceedings, which management believes will not materially impact financial condition or results of operations - The Company and Operating Partnership are engaged in routine legal proceedings, which management believes will not have a material adverse effect on financial results[265](index=265&type=chunk) [Item 1A. Risk Factors](index=64&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the Annual Report on Form 10-K for December 31, 2021 - No material changes have occurred from the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2021[266](index=266&type=chunk) [Item 2. Issuer Purchases of Equity Securities](index=65&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No share repurchases occurred in Q1 2022, with **$80.0 million** remaining authorized under the program through May 2023 - The company did not repurchase any of its shares during the three months ended March 31, 2022[268](index=268&type=chunk) - As of March 31, 2022, approximately **$80.0 million** remained authorized for repurchase under the existing program, which runs through May 31, 2023[268](index=268&type=chunk) [Item 6. Exhibits](index=66&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including certifications from Principal Executive and Financial Officers and XBRL data - The report includes required certifications from the Principal Executive Officer and Principal Financial Officer for both Tanger Factory Outlet Centers, Inc. and Tanger Properties Limited Partnership[270](index=270&type=chunk)