- Earnings call transcript Q3 2022

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Ashley Curtis

Good morning. This is Ashley Curtis. And I would like to welcome you to the Tanger Factory Outlet Centers Third Quarter 2022 Conference Call. Yesterday evening, we issued our earnings release as well as our supplemental information package and investor presentation. This information is available on our Investor Relations website, investors.tangeroutlets.com. could this statements some numerous that uncertainties, actual during will management's risks that those and forward-looking from be are results note conference of call, comments and projected. Please materially differ subject to We and Commission direct these and for Securities of Exchange uncertainties. discussion you filings detailed the our risks to with a

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

today such, only McDonald, November As that XXXX. On information that is Senior today's note Yalof, and our date, Finance Capital President of Vice call Chief to Markets. be it include Instructions] Executive X, Doug and and management's time-sensitive comments Officer; Executive Chair; important will be [Operator Steve Stephen as President, Tanger, accurate may the

other members for I’ll to leadership turn team of will Q&A. over go be Steve the available call ahead, Please our now Tanger. Steve. addition, In

Steven Tanger

call provide for is the now Yalof. thank in of our morning. Good team of we compelling And our support. to retailers. over your all quarter call. proposition our entire result ongoing I’ll Thank value consumers third the and XXXX Stephen to evident us earnings continue Tanger for a you stakeholders to turn for you joining work The to both as hard

Stephen Yalof

another to I am strong Thanks Steve and results. pleased quarter announce of morning. good

marketing dwell our sixth supported that digitally and delivered to occupancy of outlook, frequency and Tanger full and of extend annual guidance. solid brands, strategy XXX year new new times platform improvement. new basis third increased marketing straight the diversifying growth, XXX year-over-year. native the a Based over partnership raising We executed cash XX%. our dividend We attract recently the increase, And the food beverage retailers, to our flows, points sequential During that tenant concepts up our visits. of delivered our growth activations we and bringing third initiatives. this at Adding time our rent drive quarter mix. year-to-date spread and positive second Club year performance shoppers, dividend XX.X% We quarter, basis revenues, on quarter growth, ended we points for we're and occupancy, commercial

basis during XXX the points occupancy of we almost recovered drop have experienced since We the pandemic.

done have popular food curating uses, entertainment so national and We by outposts. and and centers beverage with great local our brands,

shopping spreads of additional and stability rent than contributing of space our rates our to which driving continue or upside. cash rent our With flows occupancy composition maintaining above the duration. experience. increasing repricing to All the centers optimizing previous converting long-term lease to fixed and higher of permanent while enhance variable we're percentage rents and growth driving We're XX%, Tanger by the

XX, on September for spreads with rent X.X% XX.X% quarter positive This an ended including re-tenanted year. each we spreads XX For this spread improvement positive the sixth achieved the months trailing of quarter is blended consecutive space. of

with for terms also an We leases. of have extended lease years term X.X new average

Allbirds. categories, across opening ecosystems. platform and [ADude] Mack or of retail their portfolio soon value channel the who elevate Weldon, will our diversify continue the to with Somersault, brands including that recognize to brands digitally Serena and importance and Lily, our native include be new have Regatta, We platform Such brands and opened in

Beach, to Beauty quarter our we Delaware. center Rehoboth this in Additionally, Ulta welcomed

sales to long success a local the and regional or was they've prior enjoyed portfolio and popular high-quality tenants acquisitions third line the centers. flat pop-up and leases year. total the number expectations quarter with from We temporary our customer of to in Traffic have relatively new brands for in stores our also after converted in national term compared

quarter a As year. particularly last strong we comped

programs to in foot relatively outlet period. Our a and higher quarter existing channel success months program, attribute year square our excess particularly for moderate converting flat as ago, performance new to up clear foot had provide We XX% enrollment XXXX $XXX sales Tanger stores of the the interaction inventory. $XXX compared sales We've targeted per compared paid ended these for to level quarter new promotional productivity tenant our shoppers. retailers build. XX per to September to the great was year where was with XX, a marketing in continues and at club in categories the this shoppers square also Average to prior the activity flat leverage

brands more the see Retailers partnerships, continue by digital to through store promotion. and drive-in less with promotional in on facilitated activations, paid Additionally, sales performance aspirational our participating our marketing portfolio brands further to Tanger promotions. media, strong traffic activity enable center

We have in at property our had partnership Beach. impact immediate Palm

has and retail, Palm Over XX% new customer Tanger with than Tanger construction to existing the marketing outlets, the rebranded Beach, and at for experience center customer the additional and Leasing is and Tanger a brands all service the Club contribute as shoppers national best Outlets With with XX new up days, national partnership, base, brisk transactions until food new beverage past our brands, to shopping the completed committed and and activity asset the to programs, platform year underway. less top retailers we're we've elevating grand driving been which local generating and opening offerings. stood Nashville revenue. over

yield in stabilized remains XXXX with projected X% unchanged. a opening of to Our fall X.X%

are of shifts. delay term as our strong the the performance, are economic certain uncertain remain environment. may prudent projects we cognizant by environment macro-economic We encouraged non-essential capital as we Even and near allocation with

success. holiday momentum We continued to are I'm our into forward our season. on shopping optimistic going look by And encouraged and reporting

month, organization, $XXX,XXX through Tanger and are Tanger awarded classroom we supporting raised inclusive XXX campaigns. In to than key Support for Care focus awareness grants people, our $XXX,XXX a Pink with led more Research, proud more Breast commitments our communities. we over our Last planet kids nationwide funding of in environments underserved through September, of values populations. and Cancer on and and Services we As support student our schools

With of over the support over our these past years. initiatives raised the customers, to million support we've XX $XX

our well this and a of McDonald shoppers for continued entire our the goals our the year. EV like customers at increased the our our him turn by who want free and thank our financial balance of this to XXXX. to sheet footprint I are continue to execute end sustainability relevant leadership have hear their team, as to we critical results, experience over company. the Virtually want through of call to our booked double on breadth I our grow we to stations Michael Chief and take in to Chief guidance will investing meet charging track managed is for support. Officer at these Tanger will and Investment now you you are the capabilities. earnings proven to We solar XXXX our leader charging role to to to all centers Doug and number initiatives. EV our month, to Officer available stakeholders from now would Further, Michael portfolio to of join all our for Financial Michael yearend I call. team. as Bilerman end brings centers a welcome of our as the on

Doug McDonald

was from $X.XX, core year Thank which termination per increased quarter benefited you, fees. third consistent for with year, Steve. total last lease prior period higher X.X% with We delivered share Same FFO although solid NOI results million. the of for center the same $XX.X the portfolio to the

of we the property balance loan in the on our have In of X.XX%. Ohio, XXXX. term sheet. at well until We Columbus, our venture refinanced further fixed September, a October extending enhanced positioned joint rate

$XX.X share million. of remains at outstanding Our debt

As of XX. September

debt adjusted EBITDAre for to XX-month. trailing net was X.Xx Our the

million $XXX sustainability five the margin balance average million. and extended our plus outstanding was to of option to points by weighted term $XX outstanding our pricing with years. and to amended January weighted average end, a maturity of interest the increase reduced five We XXXX fixed, we basis Our $XXX to maturity a a million extension rate quarter X.X% Subsequent metric. term one-year loan and debt incorporated the XX% by

our amended October, SOFR and In The to points. rate swaps to adjusted refinanced plus extending XXX mortgage dollars. $XX.X to basis the we $XX.X realized loan October points the proceeds seven a we nearly of also adjusted of SOFR our of LIBOR We savings one-year Southaven and maturity from on extension XXXX basis an additional plus near carries option. the Memphis, interest Mississippi new million increase million Center interest

no significant maturities weighted is XXXX. our activities now years maturity September X.X and have term these With to we financing until average debt

$XXX disciplined We and by maintaining full strong short-term of capital We credit financial a have deposits, million $XXX position a prudent to and on approach have our over facilities. cash million allocation. and availability prioritized always utilizing currently

XX, September we approximately nearly $XXX development. million of $XX Nashville million total of have of anticipated cost deployed million $XXX of the to As our

of dividend covered Our per XXXX. for year, Based share increasing increase to FAD guidance the on core be payout the expect last midpoint ratio our the a our board per we're We a range of the to with again XX% third the dividend at increase XX% $X.XX for to the performance approved annual quarter, $X.XXX our the a was well $X.XX, for in and directors date, month. of remainder of FFO of and our in to $X.XX strong share outlook now midpoint.

compared prior expectations growth we X% to expect center at X.X% of addition, NOI our same of to a In to X% range X.X%.

discussed, uncertainty impact guidance remain rents. our into macro-economic that the going As while percentage season, fourth Steve could we quarter holiday optimistic incorporates

$XX to slower our management of million budgeted. million new is initiatives previously. and combination $XX to pace reduced This $XX a from a We G&A have to between than due hires million million guidance of $XX and expense

projects. reduced generation due in with along changes also have on allowance tenant timing our retention, to scope capital CapEx high certain and anticipated second non-essential continued returning We

key our up assumptions, please first question. For take to last please we I'd release for our Operator, now questions. issued see night. additional details may on like open it our

Operator

first today [Operator question is McGinniss Instructions] from Scotiabank. coming Greg with Our

Greg McGinniss

good morning. Hey,

understand XXXX you deal more remaining And Just can you opportunity how there. to help if in XXXX, could the of or touch much as more with and see expectations on us XXXX month-to-month as leasing. expirations lease well kind hoping with for such level of of expirations to leasing more deal lease elevated also in an you in

Stephen Yalof

Greg. morning, Good

a will previous quarter. the in said and quarters, a year, So reprice estate this of where the expiration position We as term year. rent. And because all, shorter was we our far first this got growth saw we fortunately we of estate, probably years higher off that lot to that us, activity put over real in would leases estate favor burning real were was as most reprice real the for than we that did negotiation evidenced we COVID that opportunity feel showed at that this have to we that by power thinking our we've spread pricing our occupancy

of us our that leases expiring opportunity population we So the for to rents. continue push see to

Greg McGinniss

is versus short-term Or month to the like expirations for that expirations then but of got of I'm versus XX% to understand term, And Or just market? the year that last higher. leasing elevated mark month are like it XXXX? lower, leases? completed is it short sorry, the just to is was just reflective XXXX trying you've for where Or

between delta And understand of I'm kind trying so those two. just to the

Stephen Yalof

really the build, as leases, permanent to good opportunity want rents Sure, of ‘XX lot for a us a retailer a fixed sweeping start rent our rents the build. well, lot our and making retailer continue We've commitments leases partners COVID job to continue into from ‘XX rents to lot now. obviously lock-in and the And also leases a the as that to there's overage partners rent. of for of of right done

that's So ours of a strategy well. been as

push straight think we've relatively in as partners So advantage low that versus have continue taking rents rent, low of OCR advantage is particularly double quarters and team a as X.X% our you of had lot we bandwidth pre-COVID of high absolutely our leasing a -- about taking going the got to And our OCRs the spread to forward opportunity. pay platform. our to with we six tolerance in of retailer more historical we're digits, growth,

Greg McGinniss

balance market, Okay, financing just you quick, good me your do have more create you for opportunities a final your as growth? guys done to balance with generally challenge, one utilize sheet that to always just for But real external job sheet. expect

Doug McDonald

this Greg, Sure, Doug. is

about. we've fortunate that We're evaluate do to deposits. talked opportunities create dislocation market that revolver you're capacity balance believe think over we'll They, I got a continue to I opportunities. sheet, some do to strong got short-term opportunities. right. capital that expect we cash and to $XXX we have And capital. And of will the the We've million deploy create

Operator

is question Thomas Todd from KeyBanc today Capital Markets. Next from coming

Todd Thomas

Yes, I guess I'll Hopefully, I a that. hi, on just wanted that, a the thanks. Good first, question, up follow to up follow morning. after initiatives. still just to but spending have related

you remarks. elaborate your initiatives in on prepared or initiatives of that that mentioned redevelopment pipeline, delay sort that's else? you sure if certain certain in think, something Steve, developments I I just might you shadow that? or are Can And wasn't new the pipeline actually or

Stephen Yalof

Todd. morning, Good

in environment think And we've But and always we we're the that that change, reinvesting it the to in to centers centers. to to some are best-looking our event make going a like I to the great ourselves of the feel got the were to was is need on or what sharing proactive to in opposed are we've receive answer what call with spend. of serve of prudent our appropriate, as there's is in the So was and our we sure work, that the some delay give be sure any as the, capital really maybe centers that condition have industry. have to macro-economic our remarks said we lot customers. being we will that to looking we meaning we've centers do said, we're want the that spend, -- Tanger of shopping shopping we're and referencing really done our proactive we opportunity in shopping the work this always centers you make just into shoppers maintenance, going spend may constantly prepared the safety can, look That

Todd Thomas

is was it what reflects with okay, of the got I that you're referencing, reduction the mean that the that so updated comment generally guidance in it Okay, the CapEx it. part

Stephen Yalof

Yes.

Todd Thomas

And guidance. then just around question the

should quarter, into walk just revised guidance that in can sense the fourth the get us a can be quarter So you better to that guess, $X.XX bit we of, implies third the to the midpoint $X.XX so thinking there's I a in run the heading $X.XX extent that ‘XX down we from just little about? rate anything

Doug McDonald

period. the remain these sales of the have we do. continue, in the rent we quarter, volatility we given about exposure fourth number. sales for to uncertainty do and variable volume incorporate Todd, Sure, in the that quarter some just stores fourth historically, holiday optimistic more the wanted the of But macro-economic guidance we allow larger that production And

Todd Thomas

little environment. primarily sales Okay, around just come off given bit that so rent a might the software percentage it's

Stephen Yalof

that lot We're right, channel, are see value channels it’s still variable inventory. very outlet sales promotional partners Well, to channel, softer excess to just the with sales. for and opportunity outlet rent remember channels clear a our value be retailer of

is last to compared sales, softer to seeing compared year, lower necessarily what last points year. not we're price So we're seeing

Todd Thomas

last just just some I of and it. post-holiday More fallout ask off year thoughts. which a question, terms thoughts that right, And the holidays, is or very season to about recapturing. the Okay, coming after we're space Steve, muted generally then wanted typical vacates in your Obviously, so around for ‘XX. potential into the heading of around got some

your of rent. ‘XX. the of might as thoughts represent you expectations And take they able Any get turned to So any you curious if here RueXX, specifically to have in your corner that around the just there? base share we curious X.X% be sort then

Stephen Yalof

past, to we, centers I this to in retailers fourth remain that if will think of off and XX% by other and our had disproportionate are with COVID just the about And mean, rates. for of years quarter that year, we've that adjusted stores perform tough XX%, their probably of leases year question, versus have our roommates, for they'll in just we this have shopping amount we'll how what now, probably found do because you has do indicators at, what tendency leases few their -- we years renewals typical take they're are look over to leading renewal what expectations in this virtue renew year. the mentioned the particularly our look a last at a amortized right the them sizable I to make order the performance cash flows, look, stores it's in closing to to store they're retailers’ going replace relative so. very are investments a that to we in Well, burning

in to specifically more been to our business then retailers, paradigm, particularly leading a believe that health I stepping renewals where shopping is to smaller. our ultimately recent indicator of optimistic list, second because RueXX, the never we're and portfolio rent, sustained and see about and watch conversations finding which regard has retailers their you list platform. we're of holiday our them of paying in RueXX up And we watch on mentioned our With sort the be is So very growing. with within season, the staying think going they as

Operator

Next question from Craig is coming from Citi. Mailman

Craig Mailman

Good good kind Thanks. guys just this curious, have I'm had of some Steve, Maybe, year. momentum you morning.

as years, get have, these mix to re-tenanting merchandising over your trying of sustain momentum? AFFO kind existing of to and ability you side runway in kind we do you the of branding partnership today, just piece occupant you stand here new the some to management a this from Florida. rent much down either sense drive on kind the of On portfolio from here growth next the I'm few think the how the side, and of have just more curious, partnerships,

Stephen Yalof

would lot to us were the or four five grow retailers Well, looking find are to I past channel, there all, probably, outlet and fewer retailers. in years, of to starting their first the portfolio. new say of that there's a

stronger. off the brand-new our of outlet as we've population, new therefore, a with brands a name leasing a Right been that entered and great I platform tougher. we're has or were brands this now rattled shortly. the supply never got our will seeing opening demand our brand-new So all to of bit equation that have to little interest, with couple stores activity us be

had at keep can we that consistency. outstanding. join, think digits some past pushing push, for those churn lot turn time. going lease entire over from the we portfolio to at push some occupancy brands our for And I the based we forward a to one going to that an a focused in help over of of on to still we're rents. be low rentsX in to point as of to continue still that us portfolio think only we relatively us will so rent to inexpensive, OCR quarters some real We're the will was back that our have we're on we where new But particular in a or had ability favor basis. on there's strategy on now, double double new point available absorb can't historically spread great our six of push growth. still occupancy opportunity space, But successive We're we've lot in a inexpensive. view runway the going going that think there's So occupancy of I X.X. brands And we're of I've digits low

Craig Mailman

in the a at maybe the flow and made mean, guys may of better you you how basis. cash a delayed the saw guys, year. of the projects retention here, from is have you net NPV the CapEx center beginning you some is same to is than is but contribution what because I point coming leasing from much non-essential up kind And effect down originally

Stephen Yalof

what leases. deals the supplement. there at you metric of -- we've by of up the term those our on Some $XX. growing the TAs the rents is can raised But I've have permanent by we're and important gone fields new also look $XX same

for a trade that's good So us.

Craig Mailman

out having of here, of Okay single of future and operating as portfolio, cost trying that diluted hopefully maybe you higher. the some are or still either digits, moving to capital about debt potentially cost some of Again, to the here. you're But is think or here? then last about sourcing how How less success guys partners, here capital of guys positioning will to is figure dislocation be opportunity equity coming just which one you you high improve possible grow on accretive think from as yourself out capital as of best your cost that stretch set the kind to capital. guys portfolio kind

Stephen Yalof

capital and the we is And ATM for use issuance to to locked markets extent Beach enhancing and opportunities, partner they opportunities where a price growth, a development in in example that year in little of to yield our lower And our debt in that, investing proceeds evaluate that markets. of keeping and have obviously, and expectation, then acquisition to a that very at capital capital we've capital the able investment Sure, the also equity talked going cost We're makes capital about, relative proceeds our opportunities, have them where our against eye look through do on we'll continuing we're close we've Nashville's lot a obviously, last our for to of of the to that on our capital. may That opportunities, think capital, partner asset. investment, and the assets, stated a at lock-in a so of good the opportunities what meant to still bond transaction. the equity we the with is the with the a to Greg, Palm reinvesting grow offerings continue capacity will, the and that for focused and we're I look was value deploy I say. available, stock we level sense cost is of strategies own lot the piece where other providers investing in to opportunities, outparcels portfolio initiatives, sustainability can

Operator

Point. Dijkum from Compass Next question from is coming Floris

Floris Dijkum

thanks in a pretty lot my a of for fact have And taking you guys a lot to your the skepticism that the as or still index, guys, relative lot the of there's questions. of still peers year-to-date to these noticed there I REIT well investors out morning, despite frankly, well. question. more Good performed

your we're X% fixed and curious was NOI around bumps way. speed SNO also fixed, occupancy on gains, OCR, I your based underlying revenues? on the And of near NOI. the you going Maybe your growth your to further wrong ‘XX speed of of should cruising when based be question tam, similar Just SNO REIT or asking to measure get pipeline, if term obviously revenues, cruising maybe the higher can those touch rent have variable higher. the outlets Because be you But levels and going should the we the on is to the and your a your of can initiatives. on forward higher ancillary touch back all how

us year. reported achieve more I Obviously, this be year? Can next short going can that you some of be in to color million Maybe on that think that helpful. you've if you're give would very $XXX ‘XX. of NOI you that

Doug McDonald

Sure. good occupancy, do permanent continue tenants lower rent with often rent replace higher in annual occupancy opportunities leases short-term a more We to are productivity you of growth have NOI next lot contractual We rates, provide for the year's but want don't escalators. or standard And guidance We or raised our points. do X%. these payers. to grow type have some built bumps, around the to

lot cost in to these a space. valued average have retain to up that from retailers occupancy of tolerance and their partners. our believe also X.X% there's referenced, a we ratio they're to stay Steve market the that centers that to step rents Tanger willing And We want

same grow we rents, the growth. So grow the NOI opportunity there's continue driving, to an occupancy, think and center

Floris Dijkum

today? SNO What open pipeline Your signed not is your pipeline.

Doug McDonald

It's about point. a half percentage

Floris Dijkum

basis XX points. So

Doug McDonald

right. That's

Floris Dijkum

get focused guess while, next back ‘XX internally That's provide obviously. well. levels for guidance I the to that? the in are not asking of consistent medium to with of I'm to NOI on a goal trying you last But you to get But you do have year, -- And to quarter back over as term. terms guys

Stephen Yalof

lot we're That's And our the Floris. results consistently. doing, to talking our been out are going fairly our we push And we're fill us brands beat where about our our star. absorbing finding ’XX uses is number, beyond. to lands, north we're that cash on shape mean, our We flowing well our into we've want will a I after stream new for space. and new of ‘XX. we new think strategy, a we're revenue peripheral proving space, strategy in operations, What whole that there's we're look, monetizing

continue are business again the next And us year. We're seeing ahead. So very we're at we core core as opportunities that. on these pushing focused Beach North our to organic think online other for there's existing will that's from of And results today. end after our growth on we're results portfolio, that which But adding then well. Nashville, going and coming And great come hard the we're once strategy. I think going in where of of most Palm partnership many

Floris Dijkum

Steven, I up. have Thanks, if follow can one

new tenants. to little market a about talked You bit

lot in you Obviously, some outlets, they're and with of of in strengths as some revenues increasing particularly see bring a mentioned they anymore, And could that touch but they opening their with digitally have the luxury through not that whole that I typically, but are you well. you season, forward. to retail you're competing selling on Maybe also excess presumably Do been for dispose these, native potentially for that your of has brands outlets, Simon and outlet. that to particularly aren't as want particular, other your an outlets perceived to imagine and in tenants ESG and as luxury inventory are going Do excess one the selling opportunity tenants, you you an things that there getting the if from Simon the would by of you to or the see do they outlets. some element. you inventory brands for Tapestry potential necessarily luxury luxury, burn can't are have now coming the not that

Stephen Yalof

Definitely.

Floris Dijkum

in up show additional what going that leasing presumably could forward? Great,

Stephen Yalof

Yes.

Nashville, to I centers, other think new between We've great We've of got centers a categories. a number portfolio. Beach, some can our opportunity do got Palm the across we elevated into that. that proven we've and push

to do it. We continue

We those to on as team that's those where new whole to share have brands brands, a focused you outlet proving very brand and brands going willing we on open ultimately new, names the after of keep and success, stores. new

Operator

question is Samir coming Evercore. Khanal Next from from

Samir Khanal

Good maybe few that occupancy Thank I of Atlantic Steve. morning. what those of in curious now at quarter? with of Riverhead What you range, on on City, you're what kind your properties is assets. -- the more XX.X% the in you. upside a details details just Hey, thought here. further was occupancy? much sort saw than that of kind And that Can are I the driving saw jump, mean, big that a there higher you're was which provide provide doing pickup listing sequentially, kind that that

Stephen Yalof

increase to Samir. Thanks a do with of has that into think And pivoting I uses. lot our new

Riverhead and hardware example, So and and look as you our Barrel opened, take recently store. Crate as we an Gold Mitchell restoration a at

number some where Atlantic market we're our big So deals Same entertainment location. well. in home lease building a we've for Busters. location of big signed as what and center City we're with a we is do successful is home essentially San we destination to with were where able Marcos in Dave uses, we're particular doing been that a a very doing in that

outlet. they're visit still uses. underserved our great that our centers stay folks And visit individual vital when them customer where merchandising, those other that for, with We're uses that bigger in and after. a plays they in, new we're other taking and arrive centers, in to people customer to frequently, give it which longer communities center what to again, to role there, round were our they're that But do. those pure those come what drive of looking are it these sales. with going build the when they come we're communities, baskets, uses it's ultimately out more shopping gets play is Those things gets draws to particular does, bigger each and centers, are are So what

Samir Khanal

tenants what going of I if are tenants part sort temporary to make percentage temporary me, there. remind so, of guess then number, be And think that I up right. but And

Stephen Yalof

we No, or a lot break that the long numbers the to we these down absorb XX%, over into we And deals. pop-up lot going to we actually start temporary permanent tenants tend of term that to as is was tenancy to out, temporary pass number convert don't are of come start space brands, doing new shopping with they're are term this expanding, that brands these seen a new we've to again of addition of to deals we're these that through the year. that finding long and center. with particularly successful retailers, lot make our going portfolio, a And outlet, retailers exciting permit lot

key optimistic our together the So growing we our are things occupancy organic growth. fundamentals growth. on rent about two And about more optimistic But really importantly, we're think feel pretty business us an I to those basis. our

Samir Khanal

see I'm you'll sales mean, And year-over-year. sounds it continued correct? just leasing one for next is last in into on that power low. reason last me I are know pricing when sales, And year. for think spreads. like But when question me, I guess Certainly that flat you is improvement about you the occupancy number. mean, look at I relatively costs are I asking one

upside on much I you how -- more or pricing I see improvement So power you mean, into how next can guess think do much year?

Stephen Yalof

cheap, make understand, sure at have to can push to opportunity we're But all, our pricing have we're flat it then definitely the you just see right, sale, power, of numbers. and outlet center. first want we that Well, the we rents, we cheap, in space an you is look

announced looking push that shopping have to what for joining retailers prices to largest be promotional inventory clean that more for. instances, have excess our in to They're to traffic, the they value-oriented these close more price going channel. the they price are all channels with customers So all you they're so retail they and brand of close in can inventory. and what's that have the out when this we're where to are full their promotional channel, our keep clear going inventory, full new retailers selling environment, national they're -- excess center, in customer outlet to those order a in In channel, channels to is, clean paying doing the being one and exactly that happening of essentially, the ability

outlet all sales. ecosystem inventory, clearing purpose the a at high not watermark looking It's and retailers. entire is retail retailer individual each that making to promotional, same being for omni-channel excess every It's those not So of way. about it's sure the serving the of

price keeps in have have business. promotional, retailer We margins serves in our our channel. a channels. a And there's that's full many their And great only why of and their partners number of multiple purpose it retailers in high us that and served they're select

Operator

Bank Craig Our Schmidt coming question America. from from next is today of

Craig Schmidt

Steve, if to the Tanger the to tenants any there Thank you wondering that Beach? us national are might changes was operational tell And Tanger could I you. asset? you bring Outlets that Palm brought

Stephen Yalof

the and marketing we not first Well, reach. there's shopping the shopping has customers to excellence our center they made the our way, shopping through we these make them a Tanger got personal of the in what returned was when all discounts, traveling, partnership club, Tanger center with in days and into get branding the I our we club, shopping sure additional that why operational they're that but very where know mean, because reason geography, We've particular only bring that national a a digital sizable of Tanger pay strategies but to close their Tanger drive and table. by. that center communicate members

operational XX that well. great we've national from or of power, Beach, power our maintenance, buying So served efficiency centers, and have contracts. national pricing be point relates Palm as power. one. XX with landscaping, an janitorial, and from that's two, to partners it's extremely got now national will Whether shopping us Number with those repairs number national XX, definitely security And contracts, benefit view it buying and

also team, population tenant our We Beach we starting release leasing with as and of can executed. to shared that's that national reach, we that portfolio have add that partner of is without that particular, With in LOI names regard to we those expand can release additional in to the center, size a leverage when to are centers new those square our growing will XX,XXX to stages have leasing press we stores our team we have particularly leasing that a tenants team, And national the we join over open. various of feet Palm in that us.

stores, a until So stores we're the announcing not we're are to go or very in open, announce stores those signs not their competitive environment. up. We choose

Craig Schmidt

any thank stores leases for expire that And are XXXX? there Okay, then just in you that. RueXX

Stephen Yalof

of him room, our sitting is to Justin EVP the answer who's asked Stein, that question. I in leasing

Justin Stein

Hey, all Craig, a on doing? you our with how Yes, basis. retailers communication we're of monthly

clean earlier, to I personally portfolio and of continuing four grow. our forward, with as around ‘XX. RueXX, through look we and And CEO to them fact, business speak mentioned was In their turn with the to weeks, very RueXX every three watch Steve

Operator

Michael Next Mueller question JPMorgan. today is coming from from

Michael Mueller

Hi. Yes.

it ones what opens that about I occupancy a long basis in occupancy fall second you of then So first, sense how temp? quick here, for sort do expect when much us give two XXX next at? to Nashville to was points you And Can the And to how lease guess rate sequential pickup. as the versus open permanent stabilize? of question

Doug McDonald

that one. when But out the tenants third don't first take often let are second see coming answer the we I'll we versus the level, one. do the quarter Steve holiday that that of to while we the to Nashville seasonal Sure, some in. Mike, temp is break permanent I'll acknowledge the

of permanent leases. have gain. component That's the a the long we to term part side that of of basis lock-in a have is strong that meaningful momentum But So and points continued sequential XXX on number.

Stephen Yalof

that's it's temp talked there a a of XX going operations or call those a great because I fact got not we've a a potential a a keep to And long-term foot retailer some maybe one team great XX beverages, strategy space, local take And square of to decentralized the we're operations on to we've with that the that drawing leasing centers, general if strategy. and Therefore, food the a tenant, us, comes center it's that that new to before. We've new spaces retailer, a stop unoccupied we our find on team. us, does of strategy. the and using them to for as hadn't visited about And job it with open in incumbent retailer Look, to to communities lights to our on. the a a space retailer important customer serve. it's ground. suitable And important for important is shopping that managers

excited will family retailers of number shortly. very a new we're brands. will brands Tanger we've the Nashville, we're going year just there's of we regard that number center, make it there to portfolio, of some we're release to interesting see a been get across go brand selective us happen a brands and inviting to committed a with center. effort with Nashville. We're lineup and you'll same going that be about in country. the really But real shopping extremely into There's brands their debuts a that as XX% So joining to that that that are very in that so welcome the new brands We've at into every the to to new the talk sure do made some isn't outlet of we them

Michael Mueller

that initial be the as when what it. about a project could do rough a Got have sense just And roughly range? to you opens occupancy

Stephen Yalof

don't it'll out sort of know my skis XXs. I in want be get to the here, over but I

Operator

question up Our next Greg a from from Scotiabank. is follow McGinniss

Greg McGinnis

base context so Hey, rent raise, quickly to on guidance much. thank also just you want I performance but of the percent the in in touch and QX.

rent in increase So flat QX, despite to base was the occupancy.

in percent if on on breakpoints to QX, to just piece kind driving leases? it'd be the upside of into ahead being And flat expect QX, also So you of kind see it's your leading you again, rent the rent, could the the of Are there the beat. kind touch of kind you appreciated. base

Doug McDonald

Sure, you're – rent saying base

Greg McGinnis

in QX $XX.X qX. and million of Base rent

driver was kind expectation, the the given going kind percent -- the to in that be then rent regards QX, to race? performance in that of it So in is is of the unexpected, of then And just be occupancy the is increase.

Doug McDonald

some of that about Well, the quarter. QX, talked last reversals reserve base we rent included

side, will, you where these growth rate, of rent convert the flows on that that fixed overstated potential But nonrecurring the contributes macro-economic into cash there to -- that of is we into that the if something QX some variable QX. was there And rent base from going growth. items run base stability to then continue were in to variable also uncertainty. there QX de-risks the the was periods So

strategy the recovery the the of continue that's category fixed the we'll So rent, and leases base we employing. growth more as full we the of see into convert category, continue also to these rent some in style. But breadth

Operator

Thank for closing We've floor comments. turn I'd to session. further reached over like you. our to Tanger, question-and-answer any the Mr. the of end

Steven Tanger

joining for interest us your company. our ongoing in this appreciate you We morning. Thank

some see questions, early if feel Ashley in of you will Be And you well and we'd happy or San and Francisco have please be happy shortly. We Steve, NAREIT additional to holidays. to Doug free any Bye-bye. call respond.

Operator

you. does webcast. today's and teleconference conclude Thank That

today. disconnect may We day. wonderful line for You your time. thank at have your participation this a And you

Tanger (SKT) 3 Nov 222022 Q3 Earnings call transcript