SKT - Earnings call transcript Q3 2017

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Cyndi Holt

Good morning. This is Cyndi Holt, Vice President of Investor Relations, and I would like to welcome you to the Tanger Factory Outlet Centers’ Third Quarter 2017 Conference Call. Yesterday, we issued our earnings release, as well as our supplemental information package and our investor presentation. This information is available on our Investor Relations webpage, investors.tangeroutlet.com. Please note that during this conference call, some of management’s comments will be forward-looking statements that are subject to numerous risks and uncertainties and actual results could differ materially from those projected. our detailed the and discussion to Commission and uncertainties. you a for of direct filings Securities with Exchange We these risks

are as GAAP operating FFO, these the adjusted in During non-GAAP release from Reconciliations operations in included G, call will XXXX. of we accurate include same and comments funds of financial portfolio is recorded of as funds defined this center or important and our most At net AFFO, measures the income. net as is including November participants all or the to Regulation and earnings time by directly non-GAAP be management’s in that time operations also listen-only period from measures today’s date, a sensitive measures or are comparable SEC income call, our being to supplemental financial information. discuss note in it such, information This rebroadcast that mode. X, time future only for may operating

Following so questions. two We ask management’s to open for will to you questions call your the questions. limit your all the prepared opportunity ask callers have to be that will remarks,

Please Executive call, ahead, President Officer. and be will the Tanger, Jim go now turn Tom Steven will President to I On Senior Tanger. Williams, Steve. and over Vice Chief Chief Steven and today Officer; Operating Financial Officer; McDonough, Chief call the

Steven Tanger

start to during are by Thank you, effected that to Irma Harvey Cyndi to and hurricanes and September. August saying like everyone. good in would by first morning thoughts and I like everyone

and the recovery in flooding. days their their damage Cumulatively, team under the Tanger the cars harmed employees personal though none storms. during XX their were job of are losses, these and residents of significant impact were and In third by in XX.X% the this impacted in suffered on to traffic enormous our Despite and of sales quarter, occupancy families fantastic we a quarter's to our tourists a Tanger the were centers XX%. the local range lost for raised tenant reduction storms, assets did during closed that eight or guidance response our pleased year preparation a pressure spite resulting that physically devastating of estimate to consensus with Fortunately, end to the we after before homes to or AFFO storms. in their members for report and weeks beat these many the

who I performance our operating the on our and financial turn our through our outlook and will then will take ahead, recent XXXX, overview of brief the Jim. balance discuss Go I to results a over and the you Before will leasing environment. activities. for update you Jim our activities call Tom financing development of

Jim Williams

you, Thank Steve.

which share. NOI includes months Third XXXX $X.XX common for AFFO, the X.X% shareholders centers during and was to XXXX per the Portfolio during increased Quarter NOI first throughout of nine quarter. X.X% portfolio non-comparable consolidated available the

operating Over five by of the portfolio grown years, cumulatively. XX% net income last has our

a Same portfolio generate rate X.X% XXXX income centers months of of third net operating these properties top Our at XX% during XX for nine our grew the NOI. nearly first quarter. X.X% the of during center and

growth. quarters have operating consecutive streak net We XX% our portfolio same pleased of consolidated center extended are of income to

me months same not NOI approximately X.X% and termination portfolio first basis Including basis X.X center the in portfolio center NOI during for on which X.X% the the NOI increased totalled of Excluding year-to-date and fees the five discussed on quarter. same portfolio X.X% remerchandising Lease million during release, included remerchandising center and quarter. centers a X% same of centers, our indicative our million to of year-to-date actual rent earnings the basis, in represents the same nine during of some center are currently provide consolidated will a increased We over consolidated in of is with our what XXXX. NOI our the color. and months of by trailing on XX spreads first go same included peers. is leasing let of a period the X.X Steve efforts, our reporting believe many but rent the for compared results spreads XXXX reported more momentarily, is consistent

year leases the would reported reported calendar method commence during previous year, were Our the of to period Leases executed period the in expected first for space quarter within in that executed year. following current of during the commencement. commence the the

reflect for spreads future not commencements. rent rent did they So,

efforts not easily leases second be due historically in sizes and the of been actual one our reported may relevant sub number to the leases thus has first the most As reported leasing by of been - to the skewed our overall half performance. year, in have the half two of or sample

around spends transitioning took This held We basis, Canadian by two to followed as common impairment also joint comparative [indiscernible]. which properties portfolio venture, rents related both now a unconsolidated of is small we��re These a the other in considered whole. an is successful majority negotiated feet Our an and basis. heavily economics that include feet our our the of and was share converted in the negotiated, joint deals components the XX% in dependent our component neat a square each rent believe we the charge very our transaction this venture approximately located maintenance are square shortly best the portfolio in of fixed-CAM after the on both components a our lease component. calculated new and base RioCan. reflection and are area properties Market to nearly XXX,XXX Thus, $X common fixed-CAM and is structure the forming with with of Montreal of We've on are practice Both been also acquired one other. to XX,XXX on million.

in thought after in appropriate that challenges we was the value. the acquisition, competing much write center down with was market Given asset these its that to estimated large fair developed each assets our it had to the

portfolio in larger continue operate Canadian our centers two successful. and [indiscernible] assets core other are The to

from XX-year rate X, of we’ve We due floating rates X, fund on of net $XXX X.XXX% million $XX.X completed June redeem bond offering proceeds conversion In to management of a Following borrowings balance XXXX, premium. volume debt of over our August was $XXX.X the utilized make million to of XXXX. required strategies last the XXXX. We interest $XXX which X, million fix XXXX. lines to in credit to used $XXX.X redemption that X.XXX% July hold year’s offering, million million, in continued the debt this we million unsecured execute liability successfully included a the timely to execute of $XXX

in execution risk and years market million These the risk. take unknown risk, annually the flow risk to table. strategy shareholders per of the and play the off will AFFO common We about by is in to While available share alternative on basis. bring $X.XX to about increase $X by cash manage three the an now transactions spread certainty treasury preferred risk, annualized would executing

approximately or not capacity of XX, of of third a $XXX quarter unused the mortgages approximately our incumbered debt of September was outstanding and million unsecured footage interest only EBITDA by As square lines ratio net times the coverage consolidated X.X during and ratio strong XX% maintained X.XX times. XXXX, We under portfolio to a approximately million. of leaving $XXX XX% was in our credit

our exposure represented X% Our value. and of debt interpose only floating of XX% total rates total our

debt years, significant maturity rate debt XXXX. was have we X.X% outstanding the term weighted average the our quarter-end, of until April outstanding average interest on for X.X of and maturities was to As no

average have million repurchased undervalued share Our plan authorization. by X.X of $XX.X This $XXX consideration dividend that an In April, every price million and we May year since in leaves was conviction under that year our shares of increased or becoming We share the public dividend weighted X.X% buyback annualized of are million of share XXth funded basis. employ per of place. asset by repurchase company shares which strong the 'XX. our common for we million, remaining basically of by year a sales. most our consecutive so during in two-year, was This on our a $XX.XX $XXX $XX.X raised at total we our

basis. is than which per $X.XX dividend double $X.XX XXXX of adjusted annualized our share Our per share split current was on a more dividend

a rate. years, Over grown the at annual last compounded three our growth XX% has dividend

pay will of record $X.XXXX October share on XX, holders XXXX. of cash dividend to consecutive we per XXt week Next quarterly our

shares as dividend, AFFO exceed floating pay-out and AFFO our internally exposure, expected our dividend in With to return mid We maybe have conditions an should common to level used no warrant. ratio plan costs debt our increase an balance lease-up more ample with sheet generated naturally capital cash XXXX additional expect $XX in and income expenditures range, We annual to million. million our a and/or repurchase delever common by openings new XX% for our rate expected than well reduce year, approximately the to covered. $XXX next of center that share further market is dividend normalized

conservative mindset not I'll investment years Our is to sheet of fortuitous hallmark a of well maintaining grade balance our Tanger and credit to Financial outlets intend throughout a over Tanger of we economic is life. peaks now served stewardship Tom. and has call XX way that do valleys turn change. the

Tom McDonough

from outlet This after expansion opened center meet. your in How of retail you achievement miracle last Both a to read, a our able of the forth and new you challenging Pennsylvania just you Fort a product Worth earnings shortly is and delivering The had is our to opened Lancaster, you e-mail opened extraordinary set shy thank for the you're quite XX% XX% we Jim. a you, e-mail an center tenant Worth, Thank received team we lease. were the of Texas new call, delivered. which Since major friend, a and my opening. this grand center. time in considering welcome challenges Fort on deliver and environment

around a range. to probably would centers. dedicated tenants will strong trusting retailer do to the fell been the you with Today traffic has loyal and organization its your and you they you to both company, and centers know a last yourself, It has It ask do and to you been XX% and Tanger, are culture deliver that well why the has fail. others feedback of partner shopper can encourage outlet opened on new that covering for with how moment, is associates, deliver done. with wanting developed positive pause co-tenancy, to for far job the have promise. their their you lot when everything several As projected short I

reported both the plan, XX% were For few sales a and a above to XXX% example, many XX% at tenants reported sales plan. greater than centers above

Champion new Michael Fort the population We're attractions located is of Lauren, opening October market Columbia the square million very Kors, Nike, to during tenant risk Worth County, Restoration in that foot the XXXX. to Denton reporting portfolio, pleased XX. we tenant opened first XXX,XXX Other in weekend. development Hardware and mixed-use store a Worth the development X.X Motor busy sales to grand outlet in on projected within center is with capital increase look mix, adjacent opened to Polo is develop the our very in Like the center our they're own their tenants to Our from in from are of at centers Fort and Circle XXXX Texas with many Ralph additional Bradley, strong The XXX,XXX were Levi's. Vera putting mixed-use fantastic benefit resident amenities. and in without include Speedway, and in

square and a to Buckeye’s is X of units. to Moreover, Texas Course, expansion and more the more XX% Talbot. increasing as large center than and Day office adding The square Hotel NASCAR over X,XXX Championship stores. Marriot feet brand power mixed-use Weekend the Conference the size XXX space, XXX Labor outlet stellar events XXX,XXX center Series such annually plans Movado and Motor by Race Sprint to home Coach, Mega include Race XX Lancaster was opened million and XX Cup Whole the announced center Speedway Future Center expansion Center with a addition up champion of speedway, name additional up or Nike, to developer The tenants and circle and already designer new productive residential including Car units. Trial highly by residential post feet Golf Indie on two a Weekend. over and In weekend

name relocated a Columbia and Polo state in Lauren brand Ralph addition including expanded expansion the productive. newly Lancaster store, art H&M, Face, upscale of the is Michael even Kors, Armour, center opening this North tenants and of and Under designer the With more

of funded approximately the a be to half two to remain million yield are generated stabilized $XX.X of about end, quarter of we expected these As wholly X.X%. projects, weighted average year. complete end to this Combined, which expect fund to of projects these owned by

So store multiple by year far for XXXX has been a announcements. retailers, and challenging characterized closing bankruptcies

Macy, authority or no J.C K-Mart, have sports Sears, stores. Penny we Fortunately,

space Our outlet. as interested demonstrated outlets our in retailers their by for channel many their the their Lancaster upsizing XX.X% most to existing leasing outlet our are or tenants newer retailers stores continue is Demand presence coming the distribution occupancy stores tell profitable and grow existing success outlets to Fort that continue in as are Worth new that from us to well opening and and tenants distribution.

give or with example, they is store Today, in opportunity outlet Beach last are earlier, productive In in to XXXX. addition American the opening T.J. at Temporary active channel occupancy stores. opened over first up are Delaware portfolio tenant year, up sometimes Works, world in our retailers. us the the deals new & their Kspace, and will as distribution great first Eagle, up about tenants outlet the an XX Vineyard Wrangler of try coming is time. but These tenants and Old Body tenants with Tanger pop mentioned Vines Maxx, up Lee Bath they experiment stores. Navy, in eight out points to attempt a a by few Rehoboth Starbucks basis temporary this highly

economic provisions We like settled to settlement, in Foxwoods, state borrowings floating in Subsequently, property In unsecured the our I by some $XXX,XXX loan, in the former consideration interest agreement. million our partnership result in Connecticut rate had repaid of as rate turn preferred us. temp are XXX% portfolio. October, over mutual of our result to lines fourth back joint distribution joint call savings of equity releases this will return to successfully of of joint litigation and our Xrd, the interest estate the just credit. to will hundred deal hopeful with we cash the November venture. venture tendered we a with the secured that venture, interest we and This on and consolidated turn the quarter as floating in its our annual capital no about XXXX. Prior recent successful for under [indiscernible] partner In $XX.X the be refinancing the or approximately four $XX,XXX out the of interest Steve. for now

Steven Tanger

Thank Tom. you,

both that underperforming the brands they brand XXXX. of the As have consolidated when we was those I earlier, us and have have enhance new our we our high the shuttered of filling capitalized dynamic of times out occupancy on space cycle to XX, with mentioned Historically, stores, want portfolio a tell At XX.X% shoppers as retailers. opportunities occupied brands line maintained tenant name mix in sought-after September centers. by most our fresh

for a demand space the cost desirable volume Tanger the While re-tenanting relative we lower these and for were increased renewal other vacant year. may shopper XX this from has more than objectives way high-volume centers to of occupancy These made outlet historically have new in tenant five traffic, spreads sales remerchandise retailers and that Enhancing impact short-term, our overall future tenant remerchandising with a this high spreads driven years. long-term been strategy productivity. retailers when increased in mix successful plans has tenants

of which or complete now by be All are will year-end. completed

unlevered yield projected about $XX.X million X% on expected be investment. Our to capital the is

leases of new an create of these high feet forecasting executed feet. of square with to consolidation fronts currently required XX,XXX not average are average of XXX,XXX retailers in centers square re-tenant feet approximately any an XX to-date size with square activity these store new XXXX. remerchandising store Six additional with larger the the major X,XXX to size fronts We at volume

on an accounted feet leases the of format of X,XXX accounted trailing portfolio rental Re-tenanted in for space square of XX.X%. for renewed XXX blended throughout space consolidated re-tenanted the rental on square or months in increase straight-line method Lease executed this totalling XXX,XXX rate during the under increased resulted and $XX.X remaining a leases XX.X%. spreads XX.X% the XX, renewals these million our XXXX, rate average feet on XX year-to-date September increase feet. Excluding ended, X,XXX,XXX spaces, large and an basis. rate or apples-to-apples basis. spreads quarter year-to-date periods, third old provide compares on a This our to rental quarter basis cash a the an prior in X% basis our of average of XX.X% and X.X cash comparison, reported up second were straight-line on To to resulted spreads square

for executed square we is have executed including approximately process unconsolidated Our staying expire leasing million team quarter leases or scheduled X.X of year. the consolidated have leases. ventures, XX% end the feet total, portfolio in the to this through we space joint of In leases of busy,

first XXXX, within third of wide the square to feet of expect square Based X, additional tenant recaptured about feet square XXX,XXX from quarter. previous recaptured related consolidated XXX,XXX during Four space. the we August the most commitments Currently, unseen, square feet portfolio we total to in bankruptcy restructurings recapture during feet XXXX. bankruptcies for XXX,XXX of our During of know XXXX, our caused by the recaptured retailers quarter XX square we months on including third feet XXXX. of nine XXX,XXX today, a XX% we of that unforeseen we what have beginning since brand the XX,XXX and have about on up filings the estimate

basis, weighted Average ended news for consolidated good last is from As XXXX, per I up tenant portfolio on projection impacted a to XX square $XXX XX, productivity or XXXX. $XXX We XX, year-end our cost was X.X% was sales down for September range center of acknowledge XX outlook mentioned tenant with months average XX% XX months per for to that XX%. the to ended foot XX, lowest and compared performance has these hurricane’s earlier, among the rigs mall by times the the an trailing occupancy September our for months within retailers, quarter’s the XX.X% improved Aroma, annualize September that of square our for trailing consolidated at occupancy overall portfolio. portfolio are ratio challenging for sales the Harvey X.X% the many tenant however ended foot same just

rents has We paying, more very our have our the another remain retailer partners, to store top is been in vacating successful closings. said a for for slow. maintaining stores fewer Historically, while growth tenant that tenants this when way channel store are cushion announces at at there profitable line distribution resulted rents a should profitable raising outlet

tenant For thesis. planning channel growing that actively they’re this outlet stores in announcement example, outlet is the that full an close other this no earlier a examples priced illustrate that and made year are XXX many There stores. to

In with stores. mood cautiously most recent at tenants, new discussing with fact, been the professional more our meetings has optimistic,

share. filings outlook centers our and Regarding to year, variable termination guidance and between and per preceding or per to to center the excluding share balance be during the X.X% outlet operating bankruptcy we between share. XXXX and to $X.XX $X.XX $X.XX the income be undergoing guidance the revising for per net of remerchandising additional be repurchased growth $X.XX remerchandised centers. including quarter. efforts shares five $X.XX This same between are AFFO X.X% hurricanes the to between our X.X% the and $X.XX and FFO of X% and full-year share assumes We net per of our quarter, anticipated expect on the currently reflect during the impact rent expectations incremental rents third

unconsolidated additional be not between year, quarter, and reached profile million and totalling of deals FFO include common for are credit per for and and balance contingent weighted share termination $XX.X grade XX.X bankruptcy by upon with our tenants million average which the expense million share. full XXXX, courts. our in bankruptcy on bankruptcy included center ventures, rates. shares market XX.X the shares net lease million through in key repurchasing have conditions currently Other leverage $XX ultimately The we filings fees a average share including for and year approved per income assuming NOI, will investment per assumptions assuming joint $X.X are diluted flexible the same for We guidance maintaining AFFO are potential shares G&A the and the of million no additional

profitable conclude, include joint additional outlets financing interests, of acquisition forecast closing properties by Our mall or of other or or announcements any joint our model experience fortuitous retailers. does any that want not To remain value to distributions strength most additional sheet, our of core one prosper the leave portfolio unique any be your the the turns venture of impact and retailer venture outparcels, balance and and of any underperforming a us us well and cycle the our relationships from of We interests. longstanding consumers provide for of retailers, properties our positive. activity, would today’s the our sale number believe partner any of the environment REITs. positioned bankruptcies to business now I store weather of when differentiates to challenges of continue brand Despite and the the take And questions. retail happy channels

Operator

[Operator Craig America. first Bank Schmidt, from question Instructions] of Our comes

is open. Your line

Craig Schmidt

sales Good they impacting per number? morning. added, your When foot when start high you’ve does square the that volume do

Steven Tanger

them of now before are be or will will Craig. year-end, opening open Most

our it’s So, that will sales volume in kick XXXX. impacting with they anticipation

hopeful higher We’re also that in traffic we the XXXX. start seeing in re-merchandized, in we’re productivity the with sales that kick to so lift will strategy centers in

Craig Schmidt

my up, being hit optimistic. closings faced follow cautiously Do with thank mood Okay. XXXX And than in and you’ve fewer be XXXX? you about talked think you in then store you’ll you

Steven Tanger

I continue My investors that to My is year crystal should and cloudy are update year, we’ve XX this instinct my the anticipated cloudy. why and fewer, but crystal restructurings are bankruptcies be never as that’s little balls balls Craig, brand store our there progress.

Operator

of Your the comes from line next Burrows, Caitlin Goldman question Sachs.

line is Your open.

Caitlin Burrows

morning. Good Hi.

about You to so mentioned that space you’ve the of expire schedule far. leased XX%

forward compared XXXX XX% also then quarters has year. when looking way the for how are progressing through past that three the been does how years at of first XX, you versus September leasing wondering just expirations? I’m So, And

Steven Tanger

it's year into question, And second of been the for at I in at is XX% the believe was your in I which as of a don’t this of to guidance to looking time. historically know the couple this part next couple not time The point year prepared do. we’re within what years of last percent

Caitlin Burrows

also heard occupancy. new the extraordinary was just much lower with other regarding private and versus the guys you then opening that projects from said line really Fort with outlet And from what what have Worth, recent Okay. that I’ve center in there opened contacts in

kind us So, in you that of factors way? if like the could the give of success any was was wondering just market it the driving of specifically competition there something just tenure if or

Steven Tanger

thanks thanks, tenants complements first huge and glad we’re with a to market. additional view Fort for your in are on center to getting responding is we’re the of balance all Well, tenants ones this active still are Worth. the space which positive really the been we success feedback our positively, in exciting on has It in discussion in of that press

keep to our lots tenants let years or large and things there is we the magnet until think construction did thought fantastic, got at anchor planning led that XX% we did just construction, several the we the go site want move forward site, though, during on we not, into from started even successful which in maintained lease-up. mind commitments was that this least did and of site, to the we ago. site discipline us that the balance we start tenants had I not we of committed a to instinctively over two that but And

come see of group love So, we're delighted our have we’d we’re at you to it. center, to be investors if a you're and hosting [indiscernible] going at

showing are on your coming, I thanks look that forward of the Caitlin. again you for you around, line but positive comments, to you those For and welcoming

Operator

comes from Todd Your KeyBank next Thomas, Market. question Capital

line open. Your is

Unidentified Analyst

Hey, Todd good for morning. today. This is Drew on

question Just bit. Craig’s a on little to follow-up

optimism there to prepared little you us and as a been in that You some has bit on that stores. some specific Could your maybe examples? relates elaborate - that increased mentioned it cautious remarks give more

Steven Tanger

to to pulse an but consumer We I continue certainly signed that And because believe. retail prefer and the open grow dreams - struggle, of can open, it their a ideas conversation. to the that this it's tenants interesting market to is it's hard where give with long doing examples, time, for tend leases XX until we've our of environment, imagination been and a the people specific we stores great just of is is this difficult years, not you stores and are great business. new business and acknowledge capture some

not the to different So, we're of seeing in a enthusiasm, change but it's contact change big, retailers, wild-eyed cautious this going negatives are stores. opening from and is with optimism we mood, big hundreds in new

Unidentified Analyst

And are traditional had say usage or would more of your you you centers newer for historically? these that that are tenants the they

Steven Tanger

and saying a mean is strategy the executed to we've I acquisition. to is to occurs, stores, many stores to think, going an of of the for years is but I'm their very months, I we're and cash part generator us just outlet this not by is three think, going tenant that call mention well, and tenants the was six combination for name, if who many, existing usually of mean, because purchased a I been one both, it’s volume, first the to an our longstanding eight to fine they high acquisition pay very another open in open flow next, help when new I

Unidentified Analyst

then helpful. And general? any about holiday I in your just one feeling it's any last holiday on been of early, in are signs up recently the it. seeing and pick traffic Got there one what you. and just That's related are you traffic, but are season, thoughts Thank you traffic, how's know how guys early

Steven Tanger

up, was us. trending devastating encouraging flat to which was Before traffic our hurricanes, the

flat estimated of we hope hurricanes. National X% want that if don't to give centers in but X% We I year-to-date all our the of next days it’s time wood that to more the are that nice And cold increases traffic traffic, sales be the to you in really tell, does holiday our the be the and accurate. year. even any essentially anticipate to a of forward-looking end till will dry the in after touch devastation for will we’ll the Retail to statements, only Obviously, winter. the And happen, believe able we hope XX we hard days traffic up. XX Federation be

Operator

from next Citi. comes from Christy Our question McElroy

is open. Your line

Christy McElroy

given everyone. for Thank what a executed in seem you. forward basis purposes on of looks basis I in cash over further follow the X.X% old executed just we on wanted what’s as on at you’ve If basis up to look morning stat also, doesn’t comparison you in should us mentioned on an appreciate Steve, the that’s basis that Good X.X% providing on But X% it that executed? the XXXX. with an months, a QX, great the question, blended going XX get well. on from like spreads coming that to your be you’ve spreads expect Caitlin's X% include narrow last based commencing it quarters the would

Just QX. commencing in what’s

a already So, how to to more bit on just color little commence that trend based should expect what trend executed? you’ve on just we maybe

Jim Williams

Hi, Christy this is Jim.

Just we that time been leases the our say quarter the remarks, to I mean ever going can’t fourth what prepared on to not to made seeing our what to I we’ve, that’s year. for go up as spreads there. to next in in has method commence review we’re report supplement leases

will year-end try certainly call third said pretty to really on color And quarter. had call. open more on like our information now expect get doesn’t Steve as in to what to space earlier, guidance are we’ll in in conference consistent that want right what spreads we the more with We XXXX, have look

Christy McElroy

I just greater also for guidance be occupancy of environment looks being recapture, the driving the action you sense was you NOI. that in what it expect been terms at much realize to the lease leasing at a commence it’s guess, how given the year-end just the like getting of talked really the And leasing. you’ve what that’s obviously day a end raise for current you I helpful just space about and

So, I’m your wondering what year-end? occupancy what at your do you rate was and expect commenced to be you at have it QX then

Steven Tanger

Caitlin with you happy We’re get to granular that offline.

more Christy, that might I’m I sorry excuse me. think be appropriate,

Christy McElroy

assumptions And your just up for following okay. the That’s lastly then on recapture. just space

into their locations. XX At many getting they like location] you with storage back you half looks XXX,XXX that point liquidating that’s rents base the you know feet of how know so far, Can the Just disclose it factored if this of you of square just And stated? you’re do recapture are the [vital comprises? percentage have I centers.

Steven Tanger

still the uncertainty XXX,XXX. some is on There

the to negotiations into want fact you I can experience individual might respect estimate, on we’re I think imagine. tenant but an that based you go don’t as giving

our with the deals guesstimate and XXX,XXX all that is best new days the big-picture in bankruptcy are that and hopefully, four that declared -- the we’re end back, the of we negotiations the up we’ll So, as you year making. imagine, sustain courts each of bankruptcy last in might with tenants with will XX the

Operator

question next line Okusanya the from of Omotayo Jefferies. The comes from

open. is line Your

Omotayo Okusanya

morning, everyone. good Yes,

Just a us. from couple

new have First that of completed all, now that XX should you've you developments any about thinking kind development the guess, to XX how may I months? the be of we pipeline next over

Steven Tanger

new not been the and this We've Good period. and line just to morning, challenged, our XXXX, everybody was assets sales decided that I any Omotayo. movie remind to before, want develop we the challenged, on market that during were XXXX to retail between

feel our will this construction quality will be country we and all can begin we when not sites group, get time. criteria active will on there tenants, but return that our announced Tanger a we announce high with real XXXX, feel again, going we're estate monitoring over to have we no again from - sites investment the underwriting the we however, an we in very still and appropriate centers at when change have new We

Omotayo Okusanya

without and of tenants, about about retailers Okay. That’s renegotiation, helpful. specifically whole could is a in a talking And for there the to up” any kind willing in little to of, and number just of a bankruptcy? then kind push you're ultimately, what things they're of that again are are bankruptcy, of deal asking of to kind strike kind things kind “give talk the pull what bit are process you two, of

Steven Tanger

It's a every prepared We're negotiation. other every different. to particular like that because any issue granular is negotiation lease, just get not

not So, going that. I’m just to answer

Omotayo Okusanya

a about little of fair. of Tanger one kind the per with NOI offsetting up to the end bit some of guidance low And raising end another Okay. share That's the of lowered. you then talk FFO guidance same-store us. there guidance? factors from Could Guidance,

Steven Tanger

and the I our time closed issue that were amount was event. prepared the devastating the think the unforeseen our hurricanes, did [Multiple of in break obviously impact we stores is certain which rent tenants produce the percentage will after quarter, both don’t of or and reach properties of Closed major once our and rent point. variable and fourth any sales our variable a percentage during before, Speakers] remarks sales course primarily in rents

variable So, the the rent. is component major

Omotayo Okusanya

those negatively NOI? same per guidance impact will things that what’s because But store of still the share offset FFO all increase

Steven Tanger

lowered compared NOI we've if are are termination get G&A in same some our not rents last And you which year. to guidance. able notice, Well, to we center

want are bit back And we again brought major our to have talk happy stocks. and but those more you detail, offline, you the is a final of quite if we’re that component about So, three components.

share down. count the So, is

Operator

comes line Boenning. next Dijkum Our van from of from question Floris the

Your line is open.

Floris van Dijkum

authorization board and you a share at in an ability? I discount to where have about quarter you the Great. guys. increase Would obviously that wanted the about depending gain increase locks and Good million would buying of million shares or to up repurchase, $XX makes And renew allocation from morning if capital look big you to Steve, continue you trade potentially also stock they shares, back a in you the left ask are? lot generally sense. then the when fourth bought to look your $XX use a

Steven Tanger

buyback going team that the stock Floris. board morning, opportunistic Good management not to basis. with deliberations. approved regard I’m plan is an the to question on our was executing answer The

lawyers to would the future really regard with me purchases, allow to I answer Second, that. think don’t

the at to So, please don’t stock trading impact all. give our effect or me that pass a we of question, want on

Floris van Dijkum

as enough. have got question then it. up well. And Got follow can other Fair it, sorry, the one I

year. think the basis you last portfolio talk increased TAMP us the point? occupancy, mentioned this it If TAMP can Could that in overall points at from Tom you about is your occupancy XX I you with give

Jim Williams

about basis XX this this were actually X.X% year points Floris occupancy X.X% range historically about now is to and we around usually Jim. last rough year. the X% right is that’s the Hi, in TAMP where in compared to

be around by year-end think that we’ll similar I X.X%. to

Operator

from comes Citi. question last line the Christy of from McElroy Our

Your is open. line

Christy McElroy

here. year. Were of outlet you centers, or some earlier a just there Hi, up the number pipeline? the Steve was five-re-merchandising did thought in I the that were just eight out mentioned completed pull that originally, three you follow

Steven Tanger

the year number that going ago one remerchandising Hampshire. was Hi, one in the assets We Western was magnet seven. tenant remerchandising. our scheduled that This Christy. did New And original in not Actually, for to second the had sold of lead a strong the Tilton, Connecticut site. approve that we was

build don’t and put we we to decided hold. on on So, just speculation those plans

Michael Bilerman

Hi, Christy. Steve it’s Michael Bilerman for here

Just and numbers. the question page. same all spreads leasing a on the to want we’re I on leasing make sure

feet you of it’s difference X.X and million the quarter the us in a quarters quarter is trailing three lot last totalled X.X square of and supplemental to gave XX the we month feet the in you would relative square can out the pull feet new year more only first lease been quarter. what quarter, year had square X.X of of and terms XX,XXX in the which That year the a go back So, second square leasing and feet. million XX,XXX X.XX million, to million, fourth fourth take obviously this about from don't XXX,XXX the think leased. of last and about quarter than Last totals I sub

to changing? So, differential I'm between just those two understand the trying what's methodologies and

Steven Tanger

I office. don’t walk being have do Neil lines. would to Diamond I do best you and think it large I you anymore, that don't get as on phone now flowers you a delivered tired think be Please, for probably floral Michael, like. a by I and offline. you. it the your to send panic impersonation I call, I'm we my arrangement granular on way, the as with but and happy through sing say, the I would going But to am cause We’d it’s

happy give us through pass be will on you. and a So, with Cyndi group and that our walk to

Michael Bilerman

that. reason of of executed shown is account appreciate the quarter the prior is, obviously that at like actually ask being in a you executed I was business year of I XX%, first in was than least history and XX% what in that excited in guess I’m I the or XX% measure? XX%, in a of what’s that is signed commencing, which the quarter showed have to leasing quarter, looking was for almost that what the what stats, quarter, so the the deals, was second much year upwards over during backward another view your and was the in typically shown But or fact flowers. getting important was executed more quarter, always taken current given could XX% then that first -- rather first volumes, of it the always

Jim Williams

Jim. with to This appreciate Michael. And we - Hey, and Steve understand you first But to we coming just in to executing from. today commence next example, your general will of that’s comment. show you're said, sort happy you is those respond to an offline. quarter I’m I as granular would give as appreciate leases the We a up it year, spreads question, going year. get your where note more next be discuss

-- what the that’s -- think you're confused quarter I That's old first your and that’s So, method. question.

So leases… those

Michael Bilerman

Right.

you would let’s quarter put quarter to was want this waited even the begun year, that activity, leasing that September in for we third until, if have leasing into that you though of first of next that Is lease like a you even you XXXX of third quarter wouldn't wouldn’t put So, and activity, the executed put quarter the say correct? into have that XXXX. commencing

Jim Williams

in the as as but to it exactly and year, That executed, Michael. We trying you year. that give is same opening long to match right. execution within it it's the when correct, That's were was

Michael Bilerman

terms you a smoother of was fair during more was that that having the executed of is and volume first So, the quarter, doing, in done, been it your done the assumption? leasing much in being were of reality year XX% a weren’t of have the leasing that lot you

Jim Williams

Michael. is a assumption, fair That

Michael Bilerman

leasing do the hit have what doing you didn’t. it I And years, quarter? actually, but history probably XX to you by apologize, of Tanger I what were breakout for should covering answer that, I know the every

Jim Williams

you walk happy these we through detail. take to offline, it’s the can we’re think I questions Respectively

Michael Bilerman

Okay. you. Thank

Operator

follow from Caitlin Burrows, We do have the question of line Sachs. a Goldman up

line Your is open.

Caitlin Burrows

morning. good Hi,

small the Sorry, make $XX,XXX related adjusted one. look It had your cost. you for it was or to a a more results just normalized abandoned one FFO. albeit But quick actually redevelopment like gain excluded

I could that’s driving and what so, if So, if clarify was just true was that? wondering you if

Jim Williams

gain a wasn’t again. is Caitlin, It Jim this

part some works. As to we reimburse to there some that incur decided their would legal of if costs we were were for there project subtenants that walk away,

we some needed we more reserves had a just we that’s accrued and So, up of that are than that bit that little ended reversal reserve. the

Operator

Back closing presenters to for remarks. No questions. further

Steven Tanger

interest. Good questions in phone forward to Again, welcome for for Texas to call conference like. some specific look answer got luck. great bye time your next delighted seeing we to after their remain to interest. Barbeque. four you thank We calls everybody your this I thank We And good want and their and you weeks you week,

Operator

conference concludes This call. today’s

may You disconnect. now Thank you.

Tanger (SKT) 8 Nov 172017 Q3 Earnings call transcript