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]

Financial Data and Key Metrics Changes - The company has an equity value of approximately $2 billion and an enterprise value of $3.3 billion, with a debt-to-EBITDA ratio of 5x and $273 million in cash [6] - The occupancy cost ratio (OCR) is reported at 8.5%, which is considered one of the lowest in the retail sector [14][20] - The company has experienced seven consecutive quarters of rent spread growth, with a blended basis growth of 10% in the most recent quarter [14] Business Line Data and Key Metrics Changes - The company is focusing on pushing rents higher, with significant growth in re-tenanting (30%) and renewals (8.5%) [14] - The company is monetizing external land, which was previously not a core growth driver, to enhance revenue [16] - Digital advertising on-site is being utilized to monetize the high foot traffic of over 100 million visitors annually [17] Market Data and Key Metrics Changes - The company operates 36 centers in the U.S. and two in Canada, with a focus on high-traffic tourist destinations [6][41] - The company is adapting to a changing retail landscape by enhancing customer experiences and diversifying offerings beyond traditional retail [43] Company Strategy and Development Direction - The company aims to enhance customer experience by shifting from food courts to sit-down restaurants and improving amenities [43] - There is a strategic focus on decentralizing operations, empowering general managers to manage their centers more effectively [18] - The company is exploring mixed-use components and activating surrounding land to increase value [44] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges of bridging the perception gap between investors and the outlet asset class, emphasizing the unique value proposition of their centers [12] - The company is optimistic about future growth, citing strong organic growth potential and a well-leveraged balance sheet [10][50] - Management believes that the retail sector will see fewer public companies in the coming year, indicating a consolidation trend [55] Other Important Information - The company is committed to ESG initiatives, including building an EV charging network and transitioning to electric vehicles for operations [52] - The company is focused on maintaining a below-average payout ratio while offering a higher-than-average dividend yield, which supports free cash flow for investments [50] Q&A Session Summary Question: What are the top 3 reasons an investor should buy your stock today? - Strong organic growth potential, under-leveraged balance sheet with significant cash, and a dedicated team driving growth [10] Question: What challenges does Tanger face regarding investor perception? - The company needs to bridge the perception gap between how investors view the outlet asset class and the actual performance and potential of their centers [12] Question: How can the company increase earnings growth by adjusting the OCR? - Every 50 basis points increase in OCR can significantly impact rent, with 40% of rents rolling over the next two years [22] Question: How does the company negotiate higher fixed minimum rents with tenants? - The company leverages the productivity of existing stores and the difficulty for retailers to replace cash flow from established locations [25] Question: What is the company's strategy regarding temporary space? - The company uses temporary space to maintain cash flow while waiting for permanent tenants, ensuring that stores remain open and generating revenue [29] Question: What is the focus of the company's ESG initiatives for 2023? - The key initiative is to expand the EV charging network and transition to electric vehicles for operations [52]

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]

Financial Performance - Total revenues for the three months ended June 30, 2022, increased to $105,838,000, up from $101,273,000 in the same period of 2021, representing a growth of 4.5%[26] - Net income for the three months ended June 30, 2022, was $20,819,000, compared to $2,596,000 for the same period in 2021, marking a significant increase of 701.5%[26] - Basic earnings per common share for the three months ended June 30, 2022, rose to $0.19, compared to $0.02 in the same period of 2021, reflecting a growth of 850%[26] - Comprehensive income for the three months ended June 30, 2022, was $20,643,000, compared to $4,198,000 for the same period in 2021, an increase of 390.5%[29] - Net income for the six months ended June 30, 2022, was $42,281,000, a significant increase from $6,938,000 in the same period of 2021, representing a growth of approximately 510%[36] - Total revenues for the six months ended June 30, 2022, reached $214,706,000, up from $201,967,000 in 2021, indicating a year-over-year increase of about 6.5%[40] - The company reported a comprehensive income of $51,005,000 for the six months ended June 30, 2022, compared to $15,177,000 in 2021, representing an increase of approximately 236%[43] Assets and Liabilities - Total assets as of June 30, 2022, were $2,155,245,000, slightly down from $2,157,384,000 as of December 31, 2021[24] - Total liabilities decreased to $1,642,670,000 as of June 30, 2022, from $1,657,595,000 as of December 31, 2021, indicating a reduction of 0.9%[24] - Total debt remained relatively stable at $1,396,015,000 as of June 30, 2022, compared to $1,397,076,000 as of December 31, 2021[24] - The balance of total partners' equity as of June 30, 2022, was $512,575,000, an increase from $499,789,000 as of December 31, 2021[48] Cash and Dividends - The company’s cash and cash equivalents increased to $194,190,000 as of June 30, 2022, from $161,255,000 as of December 31, 2021, representing a growth of 20.4%[24] - The company declared common dividends of $0.20 per share, totaling $20,940,000 for the quarter[34] - Cash dividends paid during the six months ended June 30, 2022, totaled $40,255,000, up from $34,875,000 in the same period of 2021, reflecting an increase of about 15.5%[36] - The company declared a cash dividend of $0.20 per common share, payable on August 15, 2022, to shareholders of record on July 29, 2022[131] Operational Metrics - The company owned and operated 30 consolidated outlet centers with a total gross leasable area of approximately 11.5 million square feet as of June 30, 2022[53] - The average occupancy rate for consolidated outlet centers was 94.8% as of June 30, 2022, compared to 93.0% in the previous year[147] - Rental revenues increased by $4.6 million to $101.4 million in the 2022 period, driven by an increase in occupancy rate to 94.8% from 93.0% year-over-year[147] - The company executed 267 new leases totaling 1,455 square feet in 2022, with an average initial rent of $30.62 per square foot, reflecting a 4.0% increase in rent spread[144] Expenses - The company reported property operating expenses of $69,455,000 for the six months ended June 30, 2022, compared to $66,561,000 in 2021, an increase of approximately 2.9%[40] - General and administrative expenses increased by $3.6 million, largely due to $2.4 million in executive severance costs and hiring of key personnel[151] - Property operating expenses rose by $2.9 million in the 2022 period, totaling $69.5 million, attributed to higher advertising costs and property insurance[162] Debt and Financing - The Company guarantees the Operating Partnership's obligations with respect to unsecured lines of credit totaling $520.0 million as of June 30, 2022[75] - The Operating Partnership had an outstanding unsecured term loan of $300,000 thousand as of June 30, 2022[76] - The Company maintained unsecured lines of credit that provided for borrowings of up to $520.0 million, including a $20.0 million liquidity line[79] - As of June 30, 2022, 96% of outstanding debt was unsecured, and 92% of the gross book value of the real estate portfolio was unencumbered[204] Investments and Joint Ventures - The company has partial ownership interests in six unconsolidated outlet centers totaling approximately 2.1 million square feet as of June 30, 2022[192] - The company recognized total fees from unconsolidated joint ventures of $1.436 million for the three months ended June 30, 2022, compared to $1.359 million for the same period in 2021[70] - The company assessed the collectability of accrued rents and accounts receivable based on historical bad debt levels and current economic trends[63] Future Outlook - The Company intends to continue growing its portfolio through new developments, expansions, and acquisitions, although future projects may not be completed as scheduled[191] - The Company believes its sources of working capital are adequate for distribution payments and operational needs for at least the next twelve months[174] - The Company anticipates adequate cash availability to fund operating expenses, debt service obligations, and dividend payments in both the short and long term[207]

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)