Tanger Outlets(US:SKT)2021-06-10 21:35Financial Data and Key Metrics Changes - The company reported a 2.7% increase in domestic traffic compared to 2019 levels, with sales per square foot for the three-month period ended April 2021 showing double-digit growth on a same-center basis compared to the same period in 2019 [5] - Consolidated portfolio occupancy increased by 40 basis points to 92.1% as of May 30, 2021, despite recapturing 27,000 square feet due to bankruptcies and brand-wide restructuring [5][6] - The company expects to recapture 200,000 square feet for the calendar year, with 18,000 square feet already recaptured by the end of May [5] Business Line Data and Key Metrics Changes - The company is broadening its tenant mix beyond apparel and footwear to include categories such as food and beverage, interactive retail, home decor, and sporting goods [6][7] - A 14% year-over-year increase in other revenues was reported during the first quarter, driven by various business development opportunities [8] Market Data and Key Metrics Changes - The company is experiencing increased retailer interest, with leasing activity steadily building since the fourth quarter of the previous year [5] - The company is actively engaging local retail agents and brokers to support leasing efforts in major markets [8] Company Strategy and Development Direction - The company aims to achieve sustained growth by focusing on core business operations, accelerating leasing efforts, and reshaping operations [6][9] - The company is expanding initiatives to monetize out parcels and peripheral land adjacent to its centers, targeting food and beverage and entertainment users [7] - The company is digitally transforming its marketing strategy to enhance shopper engagement and drive connections with the brand [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects of the business, emphasizing the importance of enhancing core business operations and maintaining a conservative financial position [9] - The company is optimistic about the recovery of tenant demand and the overall business environment [35] Other Important Information - The company has welcomed Sandeep Mathrani to the Board of Directors, indicating a commitment to future growth and strategic vision [9] Q&A Session Summary Question: Can you discuss the ancillary revenue opportunities and management changes? - Management highlighted the importance of ancillary revenue sources and community-driven initiatives, emphasizing local market canvassing for sponsorship opportunities [11][14] Question: How has the outlet business changed over time? - Management noted that both shoppers and retailers have evolved, with a focus on providing value and a diverse mix of tenants to enhance the shopping experience [15][16] Question: What is the company's view on balance sheet strength and capital deployment? - Management discussed the importance of maintaining a strong balance sheet and the successful execution of an ATM program to reduce debt and improve leverage [19][21] Question: What is the vision for the company in three years? - Management envisions continued evolution in the outlet business, with a focus on non-standard outlet tenants and enhancing customer experience through new offerings [25][26] Question: What are the expectations for rent inflection points and market values? - Management indicated that while rent spreads are currently negative, there is progress being made, and they are optimistic about future leasing opportunities and unlocking value [32][29]