Tanger Outlets(US:SKT)2021-08-04 14:43Financial Data and Key Metrics Changes - The second quarter core FFO available to common shareholders was $0.43 per share, compared to $0.10 per share in the second quarter of 2020 [28] - Same-center NOI for the consolidated portfolio increased by 87.6% for the quarter, reflecting a strong recovery from the pandemic [29] - Approximately 98% of contractual fixed rents billed in the first half of 2021 have been collected, including 98% of 2020 deferred rents due in the first half of 2021 [30] Business Line Data and Key Metrics Changes - Tenant sales productivity grew to $424 per square foot for the trailing 12 months, up 7.3% from $395 per square foot for the comparable 2019 period [14] - Same-center NOI in the second quarter was up 88% compared to the second quarter of 2020, representing 93% of the same period in 2019 [13] - Consolidated portfolio occupancy at quarter-end was 93%, a 130 basis point increase from the end of the first quarter [15] Market Data and Key Metrics Changes - Domestic traffic to the centers was above the same period of 2019, indicating a strong recovery in shopper visits [13] - The centers located in top 50 MSAs and drive-to resort areas showed the greatest improvement in traffic and sales [57] Company Strategy and Development Direction - The company is focused on growing non-store revenue streams, which are up 88% year-to-date from last year and 26% over 2019 [22] - A small business initiative was launched to support emerging retailers in local communities, enhancing tenant mix and attracting new shoppers [20] - The company is pursuing new uses and brands, including food concepts and experiential offerings, to increase shopper visits and frequency [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the continued recovery in traffic, leasing, and business development results, positioning the company for long-term growth [27] - The guidance for full-year 2021 core FFO is expected to be in the range of $1.52 to $1.59 per share, reflecting continued sequential improvement [35] - Management noted that the operating environment remains stable, with no significant impacts from the delta variant reported by retailers [52] Other Important Information - The company has recaptured 135,000 square feet of space through the end of July, with potential for an additional 65,000 square feet related to bankruptcies and restructurings [36] - The company has maintained a strong financial position, with no significant debt maturities until December 2023 [34] Q&A Session Summary Question: How should we think about an annualized run rate for percentage rent going forward? - Management indicated that percentage rent reflects sales performance and expects a material impact on percentage rent as sales continue to improve [41] Question: What drove the significant reduction in CapEx guidance this quarter? - The reduction in CapEx reflects a strategic approach to the leasing environment, with some leasing activity pushed to 2022 [43] Question: How much occupancy is temporary or short-term in nature? - Approximately 9.5% of occupancy is temporary, with a strategy in place to convert short-term leases into permanent ones [47] Question: Are retailers reporting any changes related to the delta variant? - Management has not heard any reports of changes in sales or traffic related to the delta variant [52] Question: Can you provide a breakdown of traffic and sales improvements by center or region? - The best improvements are seen in core shopping centers located in drive-to resort areas and top 50 MSAs, while centers dependent on international tourism are recovering at a slower pace [58] Question: What is the status of the Nashville development? - The company anticipates reaching 60% leased status by early next year, at which point development will commence [72] Question: Are all centers in the fifth and sixth tiers still cash flowing? - Yes, all centers in that list are still cash flowing [78] Question: What are the major components affecting the FFO guidance? - Key components include a property tax refund, dilution from ATM shares, and higher operating expenses in the second half of the year [84]