Tanger Outlets(SKT)2024-11-07 15:15Financial Data and Key Metrics Changes - Core FFO for Q3 2024 reached 2.09 to 438 per square foot for the trailing 12 months [6] - The leasing team executed 543 leases totaling 2.6 million square feet over the trailing 12 months, achieving a blended increase of 14% on comparable space [8] Market Data and Key Metrics Changes - The occupancy rate ended the quarter at 97.4% [8] - The company experienced positive momentum in sales, with a focus on attracting a broader, younger, and more affluent demographic [7] Company Strategy and Development Direction - The company is focused on remerchandising efforts to attract sought-after brands and diversify its tenant mix, which is driving consistent traffic to its centers [6][7] - The strategy includes enhancing digital marketing capabilities and community engagement initiatives to connect with younger shoppers [7] - The company is actively pursuing both marketed and off-market transactions across outlet and open-air lifestyle centers [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategy and the ability to deliver solid results, citing robust demand for space and a strong balance sheet [11][14] - The management noted that the early read on holiday shopping is positive, with consumers shopping early and a strong performance expected from discount channels [20] Other Important Information - The company successfully responded to recent hurricanes with minor physical impacts across its portfolio, and its Asheville Center served as a staging location for first responders [9][10] - The board welcomed Sonia Syngal, bringing nearly 30 years of retail industry experience, which is expected to strengthen the board's capabilities [11] Q&A Session Summary Question: Concerns about tariffs and lower US consumption - Management acknowledged the cyclical nature of the business but noted positive early signs for holiday shopping, with consumers shopping early and a strong performance expected from discount channels [20] Question: Progress on retaining aspirational brands - Management highlighted the success of Sephora as a new brand in their centers, attracting a younger customer base and driving traffic [22][25] Question: Future leasing spreads - Management indicated that they expect to continue generating positive leasing spreads, with opportunities to grow into low double digits [28] Question: Acquisition pipeline opportunities - Management noted ongoing activity in both marketed and off-market transactions across various types of centers [28] Question: Expense recoveries and trends - Management discussed the factors affecting expense recovery rates and expressed confidence in maintaining efficiency while driving revenue [31][34] Question: New brands and re-tenanting process - Management provided insights into the success of new brands like Birkenstock and the strategy for diversifying the tenant mix [37] Question: Capital deployment opportunities - Management emphasized the focus on activating peripheral land and the thoughtful approach to capital allocation [38] Question: Impact of hurricanes on Q4 - Management stated that there should be no significant impact on Q4 results due to the brief closure of the Asheville Center [52] Question: Target leverage range - Management confirmed a target net debt to EBITDA range of 5 times to 6 times [53]