SKT - Earnings call transcript Q4 2017

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Loren Dargan

Good morning. This is Loren Dargan, Investor Relations Manager and I would like to welcome you to the Tanger Factory Outlet Centers’ Fourth Quarter and Year End 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 website, 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

as supplemental operating FFO, adjusted During non-GAAP from Reconciliations operations G, will to measures we same funds release portfolio time funds defined center non-GAAP measures net AFFO, measures a income. the This net our are and including in these or comparable for financial the Regulation most and by operations being also of from GAAP in or is earnings SEC included our in income rebroadcast recorded information. call call, directly financial discuss operating the or future. of period

information February only today’s mode. that as of it in XXXX. participants XX, accurate may that such, As important time-sensitive to be date, is this listen-only note are time, At all include management’s comments

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

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

Steven Tanger

and Loren good you, morning everyone. Thank

the corporate footprint for of while cutting more X.X% than XXXX, during are be grew overhead X.X% portfolio XXXX overall NOI growth accomplishments expense. expanded of several an by our by in We overlooked. X% proud that on our should We rate not portfolio top and consolidated

year occupancy This past in XXXX consecutive of lower XX% the year year expenses year. XXth greater. were prior G&A X.X% Our or marked our end with from

feat year retail and operating milestones by year unprecedented of these despite accomplished believe of a no headwinds. consecutive is XXth consecutive XXth net income REITs. other achieved increases, which we We dividend Our growth same-center our

are XXXX, Tom a make retailer some beginning even and of Jim leasing through few operating today ago. Although that XXXX results outlook outlook by will you call then the bankruptcies balance our you we stabilization promising before XX just sheet to XXXX our had and in during after and impacted expect we Go Jim. environment, restructurings give for signs we of ahead, more adversely we examples brand-wide how a to I shoots see are will the the takes than days our changes our XX to financial positive be green performance some brief starting opening to questions. recap, and discuss see

Jim Williams

AFFO an $X.XX and over an was to XXXX you, share, over quarter per above consensus. was fourth per call X% first shareholders Steve. common $X.XX X% $X.XX share, the prior XXXX. increase available for Thank increase AFFO of the year

consolidated during throughout non-comparable which Our the portfolio for X.X% the increased includes NOI, increased during quarter centers, XXXX and X.X%. fourth NOI portfolio

Over operating XX% grown has the X last years about income cumulatively. our portfolio’s net

NOI increased Excluding NOI major centers, the projects and sorry X.X% - during same quarter. the decreased decreased the X.X% the XXXX NOI and during these for five X.X% I center center centers underwent Including quarter. increased X.X% during same remerchandising same X.X% am center year fourth that

during including included totaled fourth of fees and million are center which XXXX and quarter XXXX portfolio and growth properties the portfolio during approximately not had We of XXXX a the also of during are is same $XXX,XXX that consolidated termination in $XXX,XXX center important It rate to grown the to quarter fourth NOI XX% during X% for top both consecutive $X.X our portfolio NOI XX same our of the extremely Lease for XXXX. NOI proud center have XXXX. XX note generate years. same which NOI nearly

joint in for lease and which share In the $X.X fourth was in ventures which million during included compares joint $XXX,XXX the $XXX,XXX unconsolidated that was was of in of is quarter in unconsolidated which fourth our of ventures quarter. XXXX, $XX,XXX to of XXXX, earnings fees termination our equity addition, and the

Following X.XXX% and notes fixed X, million rates management continue $XXX execute completing we strategies at due using X.XXX% to XXXX, net of the debt, July floating XX-year and in XXXX a of in June August redeem under interest credit family million XXXX. offering $XXX successfully to rate of proceeds in lines conversion our our while borrowings liability $XXX in of debt of million volume

swap interest base through In rate of of in X.X%. rate hedge variable swaps effective million. shown at XXXX December takes aggregating These January our on addition, $XXX starting we rate entered interest the LIBOR rate up into ‘XX disclosure XXXX an agreements four interest to those August average

and approximately of We approximately XX% Xx capacity EBITDA net portfolio only of X% our ratio of at coverage XXXX, million. non-encumbered and by square of X.XXx December during the interest of outstanding XX, million to was maintained footage consolidated under unused $XXX or $XXX XXXX year debt in the As the end. approximately strong [ph] mortgages

rate average of of end. X% outstanding maturity interest exposure debt at end was X.X% year only X.X of respectively. average XX% enterprise The term our year weighted floating total or Our value as total debt years represented for and of rate

maturity amendments the extend significant agreements $XXX and from borrowing our a credit from April We X have maturities million XX Last LIBOR to million over points increasing no XX.X basis interest reduced completed month, points. lot of debt spread XXXX. by to $XXX basis to years, until capacity rate we of to

In X.X% or XXth public company basis. have of since we million our increased million repurchase our consecutive raised per dividend April, price $XX.X of fourth not repurchase million the $XXX we a asset at of annualized year remaining funded was under dividend $XX.X share authorization. May most for of the million, year leaves shares acquire an by did becoming This any common While was every have X.X our common we which in did on $XX.XX consideration weighted by XXXX during This we shares of XXXX. during share quarter, our sales. a total a average

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

compounded a holders growth of we consecutive dividend per XX% Over pay January X record grown $X.XXXX share XXXX. dividend has Tomorrow, of XXth to annual the on last cash quarterly our years, rate. at XX, our will

our AFFO in expect more with We an to than ratio by $XXX our expected million dividend exceed pay-out XXXX XX%. under AFFO

should further to annual well new complete residual Our combined. next additional that common increase shares openings de-lever debt market ample and center With the exposure dividend us is approximately positive. million covered. repurchase lease projects, development year generated of up to expenditures no XXXX sheet cash take reduce maybe $XX conditions costs turns be share planned that our We and the and/or internally dividend, for rate funding of sheet naturally used our floating have as The cycle advantage balance strength capital opportunities arrives as more allow common warrant. to of our will and balance expected our

early starting Now, seeing, to Go discuss of some as happen. are Tom will this ahead signs may the we Tom. be Steve indicated

Tom McDonough

to XXXX XXXX decided the for opportunity, maintaining occupancy. year bankruptcy while including renewal upside XX for high was by space commenced tenant and we multiple during with to short-term challenging about tenants. market execute a Thanks, retailers of conditions, necessary XX% renewals preserve brand-wide these accommodating Faced to of characterized the Jim. flexibility our that our partners provide closing announcements, and

we rate nearly Additionally, the our in XXXX amount occupancy Nevertheless, XX.X% XXXX. overall did at that of space was year in double we recaptured end.

sales expected short-term holiday While driven retailer in other the environment leasing positive to improved increases, and among tailwind things our community. recent impact provide continue last reform to sentiment retailer our call renewals is considerably results, margins the these will by the tax XXXX since have earnings improved

accessories Our impressive ASICS, Sperry for sales X% during Armani, gains the to tenant down Levi’s slightly. sales posted By apparels and flat the performers, were beauty, fourth best and up such quarter Barneys, food and within our were as [indiscernible], Van, year. and category, the were Lululemon, shoes Adidas, tenants portfolio while

While in we expectation last half recaptured of concern our of amount year we like are at shopper up program Membership track users is our metrics tenant watch list, still marketing Many the year. it quite were year have our XXXX of loyalty this to was the Perhaps our app corner be this than feel mobile of today been sessions up and and stores club, shorter of list website during the XXXX. database time is turning Tanger we less last in XX% XX%. XX%, is we also around grew increased XX% a e-mail and recaptured that the positive most a were reason compelling have demand.

opening tell and active continuing and tenants XXXX group York high XXXX. of in tenants question designer distribution interested and and in year, us New and name tenants more were upbeat is without outlets that the new channel [indiscernible] profitable most to stores XXXX continue their the have with than Starting brand are early into late been volume this they growing. in Our December

break XXXX in to months one history. any development, XX ground, and outlet we company’s leased. major and new alike. new weighted total expected and a Turning developments, have XXXX. not of periods that new a had we completed It center garner period opened robust Texas Since X to centers. centers wholly-owned these have a non-core that projects They continued stabilized we will opening Fort X.X%. new expansion did and not Lancaster, announced, we positive Both once XX% takes a strong of to sold of Recall any represent September. are October our the so XXXX and perform openings to new investment retailers and first yield developments opened development Worth, featured outlet market center October our in existing center in previously was Both X we followed October as to acquired a Pennsylvania two be between XX most tenants in complete opened centers and $XXX.X combined and million possibly XXXX. during shoppers growth of from feedback average XX The well of then, and deliver generate

We and the on before pre-development development. to call I continue in diligently new impose to the back Steve. pre-leasing over to breaking on land ground ourselves that pipeline now we upon shadow our a thresholds opportunities and turn will achieve work acquiring

Steven Tanger

Tom. Thanks

most has when by Our fresh times our sought-after that of end is of a today. on those more REIT with underperforming filling Historically, have have enhance the XX.X% as us new both December opportunities and tell centers. occupied have our higher which tenant of consolidated earnings they capitalized in the lineup stores, shuttered out to was brands portfolio shoppers reported dynamic cycle XX, name At than the brand we higher that year XXXX, maintained retailers. space occupancy we brands any mix want

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

unlevered since expected Our investment, closures starting about the by of capital million our yield and to in store bankruptcies remerchandising. is partially portfolio $XX.X rest projected unplanned be X% offset this the on

planning remerchandising activity are additional in We major not XXXX. currently any

average rates for space square rental that increased throughout portfolio that large we renewals leases with in totaling of volume XXX,XXX increases period rate for in square accounted centers XX, and re-tenanted XX consolidated Re-tenanted feet on Excluding million during commence in rentals X.X%. X.XXX feet XXX,XXX have million executed XXX ending high leases XXXX. stores totaling retailers of resulted square the resulted rate nine average of increase square feet the the space the five in XX.X% an accounted months re-merchandise XXXX, and for remaining and rental for during space the XX.X%. leases feet blended of X.XXX Lease format December rental

to order mentioned, and renewal about with X that year space higher term less preserve of the we represented XX% total commenced strategically the Tom renewals executed maintain or XX potential. occupancy our upside As in of

spreads renewals re-merchandised rents on and nine were XX the XX% and on these with renewals average and blended XX.X% for basis blended a basis. X.X% basis. X.X% for Excluding a increased cash The renewals leases equivalent

rate to XXXX, renewal of expire space line have our portfolio in scheduled the XXXX XX% renewed We with in of XX%. consolidated

in January, the XXXX a Through We year. this portfolio that of we process made time expire our progress to executed or about in XXXX our the space on expire deal up same XX% expirations. leases at scheduled scheduled space end great for of have year of of leases the was last from the XX% consolidated to have renewed

will rent through and X% commence spreads leases XXXX basis. X.X% in a Our a on on blended that line consolidated increased January basis decreased straight XXXX, renewed cash and XX, portfolio re-tenanted

XX-month which straight line renewals XX of space, rent term with XX% year for spaces the $XXX X within ended spreads renewal the XX, increased the productivity December X.X% of square performance trailing per per for believe the sales blended the and rent renewed portfolio NOI the and on sales negotiations a XXXX X% basis. blended improve trailing the the straight stable foot represent – on consolidated months trailing or Excluding spreads basis renewals. for months on period. or less, $XXX was and X.X% a was XX up was of a ended spreads to that foot basis balance line Average center rent an basis. tenant square portfolio basis X% for Current X on lead our should us XX cash Same tenants December for a weighted increased cash tenant XX% and about on with

With consolidated profitable top very we portfolio, profitable the the ratio more have Said the distribution been tenants REITs our while occupancy the is among average growth are mall as should cost maintaining there raising at slow. our of channel at lowest paying, rents for partners. remain for line XX% way, a just another tenant cushion store to our successful rents tenant

FFO. termination XXXX assume overall for elevated This ranges are Regarding NOI between portfolio net and assume our by XXXX restructurings NOI the These center and that a and average and strategically They XXXX. retailers X.X% stable, half and Other between expected negative level for to center store we for to high portfolio. NOI between closings assumptions million flat. the $XX.X of will and about tenant as million we and growth outlook, share from impact $X.XX remain million in are X.X% and per to in level commencing to our be assumes included $X.XX sales about $X.XX fees, per not which XXXX guidance guidance follows. and administrative same preserve executed short-term XXXX is and are potential maintain the negative and closings consolidated average expected NOI, same and X be quarter. guidance lease renewals of General bankruptcies, are lower the key in also $XX.X assume rate upside expense income which reflect occupancy. occupancy Lease of and $X brand-wide between introducing resulting modifications related $X.XX store filings between XXXX,

We capital shares combined million $XX.X expect diluted for million XXXX. about XXXX average allowance net FFO. weighted and expenditures second for common $XX.X $XX be generation projected of income and to million tenant in

provide questions any of joint one brand conclude, We you the believe financing call not and us of does that any our distribution sheet, include the acquisition impact most I strength mall activity, profitable from for want happy REITs the to the remain of bode longstanding now prospects joint Our our any or our of the to retailers. might continues the any core channels our And retailer experience that of interests. of and balance portfolio properties business. that to shopping our differentiate forecast outparcels, customers fortuitous or turn the sale and To properties outlets well experience over am partner and interest for venture have. long-term for venture relationships unique or value our other

Operator

Bank of comes your from [Operator Instructions] Schmidt Craig, is line line from of open. America. question first your And Craig the

Craig Schmidt

you do efforts think wondering you be remerchandising might in efforts additional Great. did Thank the you ‘XX, you. more doing noticed ‘XX, no said that five XXXX? you beyond remerchandising in was like I I

Steven Tanger

But with Craig, for have XXXX. present team good any morning, we the right for themselves. to yet. might to we year asset XXXX plans during are We not carefully that decide properties prepared our remerchandising now potential discuss each many opportunities management no examine times plans our on

Craig Schmidt

in would in mentioned were ‘XX? And they ‘XX that call then expect the lease the be in and of how know what short-term ‘XX, versus great. to I modification half you ‘XX store renewals Okay, compare on you you closings

Steven Tanger

the feet we – XXXX to that about Well, XXX,XXX XXXX guidance our square feet. closings of our which of received the XXX,XXX store to is last again, back and includes levels year, half square

So it’s a normal part of during year our the space. some business to recapture

As ahead NOI lease ‘XX as as into in far for those captured amendments for go center were the actual ‘XX. our results same we guidance

baked that’s guidance. the of all So into

Craig Schmidt

Thank Okay. you.

Operator

next Your from is McElroy line comes question from open. Citi. Christy your Christy,

Christy McElroy

morning. Hi, good

relief relief of XXXX, happening deals the bankruptcies on are deals those in these productivity more in rent sort Just tail lease deals course what or rent and of short-term versus tenants it XX XX percentage is the expirations whole in and assets? normal portfolio XXXX of the or and the across for the and are lower

Steven Tanger

Good morning, Christy.

I As as our picture or those but baked for far mentioned, the global into or properties, results on regard into give as our into any ‘XX leases just rolled with guidance to modifications guidance the individual and leases all We NOI. as individual lease of lease are NOI. new baked any ‘XX don’t are all actual or amendments for overall

Christy McElroy

short-term, thinking at about keeping rent? strategy And some up with leases occupancy to then sort high, longer re-tenant higher sort in of these longer permanent just stores plan regard hopefully longer, to giving the term what’s rent on the term the game terms of of with plan longer in term

Steven Tanger

our to We are see tenant are some from convinced starting momentum positive we that partners.

difference the between lease started Our They stores know and bright is was occupied less customers year straightforward, of Very long-term are X dark since are permanent store not occupied. and a tenant. or or a of pretty stores vacant just dead. if a alive, know of occupied business we strategies our the few short-term

before. this downturn years we XX is through business. been in have our not This been have in first the We the

to many and are it’s portfolio talking certainly today we our leasing tenants having existing that tenant the more we is all more or talking are rep – We tenants a getting are new XX extremely to year a ago. add is partners. our ago in positive out you than will where company days been to with tell are everybody our I reaction to we much positive meetings

Christy McElroy

follow-up I just time quick in Just level on what of really sort in this but what of kind of get last know two on period follow-up that, short-term to portfolio? that where you had I a of questions, only was the your place – deals

Steven Tanger

it think that as market I it Christy, was to the that it after may [indiscernible] was And to probably XXXX XXXX, burst. before stock And was tech in tech you move before to XXXX XXXX sometime right after the XXXX the bubble that XXXX – crashed. was to recall it.

So we been have through this before.

have retail sheet maintain is is we And may to other these. and on keep us we to like so this have are safety cycle to liquidity when fresh balance the we cycles reason Our the to believe owners liquidity do will a them and we net The liquidity not fortress. our have is and new come stronger get through focused their through market there properties assets. maintain

refreshed, properties if and re-merchandised, of go are So sensing when to it is can they and turning. you look are anywhere they we our ready turns we great market any the are and

Jim Williams

NOI page there investor go in you years this quickly to start says and back had I refer spreads, growth that’s a There is will that they affect a is we NOI after the presentation the how to all growth our and and you pretty just see of Christy, XXXX-XXXX our that. that on later And our website. rent Jim. short-term then deals couple period. spreads on rebounded way can the And

Operator

line Instructions] me Christy. think is your open. I Alright, pardon Christy [Operator

Steven Tanger

Caitlin, there? are you

Michael Bilerman

agree next. Alright. It’s up, Michael I would to but Bilerman, queue I guess

this there were stock it but just have economic it’s is fact you the can deals, or and if know like, feet of geography that of a the about in seems maybe negatively do appears you that the XX% because this was number XXX,XXX different right ‘XX given XX% take confirm examples done it really represents XX feel drill in you that because it is it really early those about happening the is if market just, that I you it time Steve a just the So goal, square short-term it just recession before, business of being in is for ‘XX, but because X% online? retailers XX certain their fact down portfolio. of don’t of working driven, a that sort maybe bit other the but number different the what the of I well, have is was little math all are that retailers, And bigger respect their what’s driven, economy retailers impacted done deals

Jim Williams

Michael, hard exactly. Jim, question this answer It’s to that is Jim.

that retail I portfolio but and think – struggling that during were renewals to of in more of the in related those will of were that’s renewals were their list where some that tenants up showing say we so so most all bankruptcy portfolio, their of are we reasons, tenants variety know but the directed. short-term most outlook a year the on – only I watch for these but was those not

Michael Bilerman

of just your renewal, represent if your call square the tenants about in from ones it’s so reset and were guess it you was just it, X% of their all those back did you of got or leases? how totality today future do if I up markdown footage leases much for portfolio Well, that step coming XX%,

Jim Williams

or bankruptcy Michael and we Well, the in volume bankruptcy, the we will short-term, and we so assumed optionality higher that that that so so maintain we year or have a do. can lease stronger to the with leases and replace tenant, tenant tenant sometimes negotiations in the trusting where be modify

short-term that with are and have potential future, we tailwind before in expectation consciously, it’s leases the changing. a this we is the So, done sensing the we maintained have market

to deals tenants. when both market we if about there in experience, the seems will the term I before it’s we expires, orders this our now more to it’s on volume happened only able and we get brand we – are higher when assets but higher name higher you is never for cost confident past term going But get market with short-term replacing with the guide going deals worse. many We our that rents. understand should go appreciate what rents well again, you and every like X a expire. which have tenants to downturn will be regardless are we know, no as have longer they Once our which replace don’t you that is time with ways strategy, maintaining over feel conversations and And saying completely, will year our these high to these future tell occupancy of leads that high-volume in me return

Michael Bilerman

full get it’s I your the because fact it a that to that everything. have and so that affects place I assets important, And appreciate shoppers keeping shop and right,

represent average full get XX do and did XXXX of part think you better doing XXX,XXX stepping sense you more much this are be it, have arguably back year in vacancy is rollover, that on That’s to other you feet to leases deal think want to portfolio these try to next had it, they already square going just are to get math. these your to X% of I get is, how the lot than XXX,XXX just early going if market about that or your to rents? I of going in don’t a with from with ‘XX I exposure feet they you square tenants more there when future can’t because you a survive have

Steven Tanger

look the There is into can future. no way we

conversations. in are We

us. we these normal tenants are existing have of deals terms with with Some that short-term lease

of not with unique are So, their done most we existing tenants, over it’s business not have portfolios people – time. these large these – in

seeing Our the than a stabilizing, feel number. are the half we instinct did much market watch list at probably risk of we have that are what we is shorter year that tenants ago a and we that’s is

believe not me else to there look know experience exposure asking really are which are you, our I I we to and and to answer X% you you I outlook greater happen our that future, us do if going can’t to is how do. don’t don’t go So, XX%. asking from the into because tells that’s

Michael Bilerman

math even say think to have you I – asked I a long-term look the I It if taken terms of lease you you you the to do it’s cash, future don’t number and of am can’t sign eager trying want that basis larger. XXX,XXX nor to rents sign into lease XX% to I feet a square that have why better an a not these sign picture want that’s look, trying I insignificant And they a do footage. long-term on with get what to at we GAAP down much rents. down and and those on that get how is are just will the after mean, for represents exposures the beyond not this. off square in And tenants and

just to are rest understand what trying to portfolio? of the the We there the understand what’s risk is in in

Steven Tanger

always permanent tenants leases if and or – you as XX.X% portfolio balance our the historically of we X less of is occupancy. long-term or have Michael, had I look X% with year back, the X%

don’t it’s several potential conditions, be is headwind, times I it’s we be not to renewing just is long-term – have when that leases this it, year is So, going to the sure a done have several as market we want anomaly. this enter other said, really to today below you back an significantly it. that confirmed We have I anybody look certainly an feel happy hard now market – not it strategy abnormality. different get we we people with as quantify no that to understood are it’s short-term but into while will from have we And And in a leases. appreciate my desire are to instinct worse. we as I And

Michael Bilerman

Okay, the thanks time. for

Operator

And your Caitlin line Goldman from next of Burrows your question comes Sachs. Caitlin, open. is

Caitlin Burrows

modifications you Hi, give you good think the short-term growth of ‘XX outlook, just of in there the the ‘XX in what is same-store NOI guess the can in I terms morning of renewals anything results driver team. terms and with was power you getting then And channels are more space? have results? as side, your maybe malls the occupancy are that the centers, competitive it finding sales lease strip centers, other on been, such

Steven Tanger

of Well, years let of in between into our hear tenants a answer questions. is me tenant their agenda. go to outlet partners try to on as that center center long-term as an XX centers. whether have partners long outlet decision from back don’t been or Most a We some ours, strip both our

against compete the don’t we So, center strip store growth. for their

answered more temporary the of last but happy if questions them, tenants to for would our color, I think would strategic regard with you and call, the strategy be into most respond. like in I I, entering to

Caitlin Burrows

you could that response, a give quick If be appreciated? would

Steven Tanger

asking so mind you will again, give you…. I Do question the

Caitlin Burrows

more when a you it is driven location short-term by think something the lease does like seem at just sales or driver whole? modifications, or else the Yes, of as maybe it renewals the with about it’s brand results the

Steven Tanger

trustee short-term lot or the lease to few on lease with less are the assumed period. and the into of modified the whether A short-term by that based Very X for we bankruptcy them year sales. deals a went tenants have are of

rebounds, into to and business tenants of other some enter a want we XX-year-olds. We the see have parts its with the but multiple and short-term in assets reviews may portfolio, they portfolio X if

Caitlin Burrows

Okay, the thanks. I back in go will queue.

Operator

open. Your of Capital KeyBanc Todd, next line your Thomas Todd comes Markets. is question from

Todd Thomas

Hi, morning. thanks. Good

in for year-over-year or assumed guidance in what you range occupancy same-store for you the are share the of decrease on the able the midpoint what same-store the question a year has end? guidance, occupancy at model? to NOI Just range Are assuming

Jim Williams

is probably think in we or the mean, XX average points. about I occupancy in down model basis Yes, our midpoint the

Todd Thomas

that on of you tenants to rent then point, the that are those color maybe Okay. how you lease expect achieve any on sense provide any interest completed play modifications that XXXX, far levels seeing you of from can new were might and is this so out? the some at of sort And there the some in

Jim Williams

will I that. Todd, reiterate just

our kind of We shock for tenant have line their slows. a cost partners, as already top the when lowest of occupancy growth absorber acts which

they outlet that one than negotiations – at are tenants these the the profitability conversations growing having and follow corporations. with We return and The existing be both tenant rents, were them. higher understand our completed they still the value tenants. that for we our will meaningful outlets most which in can to tends these profitable channel and of We are divisions distribution new or is rents. instances most and many feel the they either of in tenants partners most when profitable market understand the existing a most still are Capital create of

Todd Thomas

is could here, that one feet one I XXX,XXX same-store? in square of sneak in you XXXX, quick of And completed remerchandising more Okay. that if all the the just then

Steven Tanger

Yes. Todd, it is. yes

Todd Thomas

Okay.

Steven Tanger

Or assuming for for XXXX. XXXX,

Todd Thomas

okay, Yes, you. alright. Thank

Operator

Nick from UBS. comes from open. Yulico line question next Your Nick, your is

Unidentified Analyst

are XXXX tenant seeing interest Good a morning. XXXX mentioned external questions probably and in Nick, quick on there this groundbreaking is I at This you announcement openings is today? growth, on potential the know couple this out with just as level picture so you year Greg a well, project had seem of [indiscernible] the of year, for appears feasible but

Steven Tanger

have to but external rapidly we present have opportunistic Good morning. through liquidity flexibility the growth. it’s an type is created other and on one itself, present planned, allows should us we itself. now, to balance something that of the through it’s have if accretive The sheet ground nothing close investment long development And sheet balance Right a acquisitions year. does or we whether be

Unidentified Analyst

Okay. Thanks.

in that pre-answered the on is there, know I of for on there assets in second question of kind but outlet stake small anything market my even of acquisitions make investor potential terms valuations You ownership the your JV quality sense? that as you market or presentation, any a high mentioned

Steven Tanger

on high to are where us would to centers know quality be to now and find we the we quality most happy outlet, them We know one of high talk them. If selling market. a outlet

Unidentified Analyst

Alright. Thank you.

Operator

And your from next Mueller question comes open. from your Michael line Michael, JPMorgan. is

Michael Mueller

Hi, renewals on expectation the what’s XX short-term the how or leases be in that rent are Thanks. going how once will of should thinking the about think keep go that mark that? year away portfolio, I passes, to how you just literally and XX first bring we many to normal the mean you be but them to up I many and just they month placeholders, it a able

Steven Tanger

leases XX that have. of it’s leases all, of thousands of we First the

Michael Mueller

Okay.

Steven Tanger

the less year with are with tenants. conversation leases our other the these that X leases portfolio. in of are we Most have tenants balance we with And or of

we you other time. sales So these we leases. fact will are tenant any be market in be I the give our is in improve as all does revenue improve that ongoing able to and the that from guidance than can’t market conversations with and get that we instinct the them the improving is able the our to improve

Michael Mueller

didn’t curious you are guidance, you Okay. lower I much of occupancy, missed talking little about you I talked it, about an question, may And color about how don’t was I a you lower just I – give Steven, hear that? could second quantify and but year-over-year expectation if have

StevenTanger

occupancy, mean, points less the of our year. the includes XX basis points course guidance I basis average XX during occupancy less Sure. about

XX.X% you As this occupied. ended know, we year

occupancy occupancy the not of basis XX% year average. are average XX but guidance We on less December our ending for includes giving less, as during on XX, guidance the points

we as to said is but number, leasing beat guidance. working that’s our are obviously, the everybody Now real that agent a hard number and I in

Michael Mueller

you. thank Okay,

Operator

And there the at phone call time. turn further Steve this over are Tanger. to will I questions back no

Steven Tanger

wish Day. loved questions more at Once we again, and have we and your have ones available thank you everybody to color, you very if answered And again, respond a I us hope Tom any questions healthy your like of and for and to I like your additional interest. Valentine’s Jim, would or you you other happy are for all to anytime.

So, have good one. Goodbye a all.

Operator

call. today’s And conference this concludes

disconnect. now may You

Tanger (SKT) 14 Feb 182017 Q4 Earnings call transcript