Financial Data and Key Metrics Changes - Core FFO was $0.58 per share, a 9.4% increase over the prior year, driven by robust same center NOI growth of 5.3% [6][13] - Occupancy increased sequentially to 96.6%, with blended leasing spreads of 12% over the trailing twelve months [6][13] - Tenant sales increased by 6.2% to $465 per square foot on a trailing twelve-month basis [6] Business Line Data and Key Metrics Changes - Same center NOI increased by 5.3%, driven by higher rental revenues from strong leasing activity [13] - Other revenues continued to grow, contributing positively to overall financial performance [13] Market Data and Key Metrics Changes - Traffic to the centers was up compared to last year, indicating increased consumer engagement [9][10] - The company is seeing population shifts and residential densification in core markets, leading to increased demand for restaurants and service uses [9] Company Strategy and Development Direction - The company is focused on maximizing value through peripheral land activation, merchandising optimization, and investments in existing centers [9][11] - A strategic approach to leasing and marketing is being employed to attract new brands and expand store counts with existing tenants [8][12] - The company is leveraging AI technology to enhance customer service and optimize resources [11] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the company's strategic approach amidst macroeconomic uncertainties, including inflation and shifting consumer sentiment [12] - The company raised its full-year guidance for core FFO per share to $2.24 to $2.31, reflecting strong operational execution [16][17] Other Important Information - The company has approximately $614 million in total liquidity, including cash and available lines of credit [15] - 95% of the company's debt is at fixed rates, with a weighted average interest rate of 4% [15] Q&A Session Summary Question: Can you elaborate on the merchandising strategy and its impact on sales? - Management noted that there is significant demand for retail space, with many retailers actively seeking to expand into Tanger's shopping centers, leading to increased traffic and sales [21][22] Question: How did the early back-to-school strategy perform? - The early back-to-school initiative resonated well with consumers, resulting in increased traffic and sales, particularly during tax-free days [25][26] Question: What is the status of the remerchandising process? - Management indicated that remerchandising is an ongoing process, with continuous efforts to attract new brands and improve tenant mix [31][33] Question: How is the company addressing the tariff situation and its impact on leasing? - Management reported strong leasing activity despite tariff uncertainties, with over 2.8 million square feet leased in the past year [35] Question: What are the growth prospects for the company in the coming years? - Management expressed optimism about continued growth driven by internal and external initiatives, with a focus on enhancing tenant quality and customer experience [39][40] Question: Can you provide insights on tenant credit exposure? - The company maintains a manageable watch list for tenants, with minimal exposure to those filing for bankruptcy [104][105] Question: What is the outlook for outparcel opportunities? - Management highlighted a growing outparcel business, with several deals in the pipeline expected to generate significant NOI in the near term [109][111]

Financial Data and Key Metrics Changes - Core FFO was $0.58 per share, a 9.4% increase over the prior year, driven by robust same center NOI growth of 5.3% [5][12] - Occupancy increased sequentially to 96.6%, with blended leasing spreads of 12% over the trailing twelve months [5][12] - Tenant sales increased by 6.2% to $465 per square foot on a trailing twelve month basis [5] Business Line Data and Key Metrics Changes - Same center NOI increased by 5.3%, driven by higher rental revenues from strong leasing activity [12] - Other revenues continued to grow, contributing positively to overall financial performance [12] Market Data and Key Metrics Changes - Traffic to the centers was up compared to last year, indicating increased consumer engagement [6][10] - The company is seeing a shift in demographics, attracting a younger consumer base while maintaining its core value-seeking shoppers [6][51] Company Strategy and Development Direction - The company is focused on maximizing value through peripheral land activation, merchandising optimization, and investments in existing centers [7][10] - A strategic approach to leasing and marketing is being employed to attract new brands and retail categories, enhancing the overall shopping experience [6][11] - The company is leveraging AI technology to optimize customer service and enhance data analytics [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic approach amidst a challenging macroeconomic environment characterized by inflation and shifting consumer sentiment [11] - The company raised its full year guidance for core FFO per share to $2.24 to $2.31, reflecting strong operational execution [14][15] Other Important Information - The balance sheet remains strong with low leverage and ample liquidity, providing flexibility for future growth opportunities [13][10] - The company has successfully assimilated recent acquisitions and developments into its portfolio, contributing to NOI growth [11] Q&A Session Summary Question: Can you elaborate on the merchandising strategy and its impact on sales? - Management noted that there is significant demand for retail space, with many retailers actively seeking locations in their shopping centers, leading to increased traffic and sales [18][20] Question: How did the early back-to-school strategy perform? - The early back-to-school initiative resonated well with consumers, leading to increased traffic and sales, particularly during tax-free days [22][24] Question: What is the status of the remerchandising process? - Management indicated that remerchandising is an ongoing process, with continuous efforts to attract new brands and improve tenant mix [30][32] Question: How is the company addressing the tariff situation and its impact on leasing? - Management reported that there has been no significant hesitance from tenants regarding leasing decisions despite tariff uncertainties, with strong leasing activity observed [34] Question: Can you provide insights on the occupancy metrics and future expectations? - The occupancy figure of 96.6% reflects physical occupancy, and management expects continued strong demand for retail space [44][92] Question: What are the growth prospects for the company in the coming years? - Management highlighted a positive outlook for growth driven by internal and external initiatives, with a focus on enhancing tenant quality and customer experience [38][97]