Earnings call transcript Q1 2023

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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 First Quarter 2023 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.

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

measures as comparable net FFO, of our to Core included During non-GAAP earnings funds debt. available are G, will Reconciliations we or FFO, GAAP adjusted funds defined FAD, the release EBITDAre distribution, measures net same-center including or the measures Regulation income, our by most these in operations also from financial non-GAAP for directly SEC operating call, in financial and discuss information. and supplemental

is for in time recorded call This being for a period future. rebroadcast of the

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

will Following Instructions]. question. prepared the management's comments opened for your [Operator be call

be call Officer. Yalof, Executive and Chief today the Chair; Officer Executive Chief On Michael Financial Stephen will Tanger, President Chief and and Steven Officer; our Bilerman, Investment

In addition, our be will team for leadership Q&A. available other members of

will over Tanger. Steve. go ahead, to call now turn Please Steven I the

Steven Tanger

Good call. joining our very had our us start morning, we strong We as the to year a expectations. quarter XXXX thank and outperformed you first for earnings for

New shareholder incredible been Next an delivered return. Stock a milestone has and the Tanger to closing Exchange total XX we the It month, mark on where XX. an will years will York celebrating publicly Stock we on above-market bell that be May as traded company journey be has ringing

on remain to outlook its strategy. Looking as confident forward, the execute optimistic our continues we growth in team

the call turn to over will Steve I Yalof. now

Stephen Yalof

report have NOI positive activity and good of expectations. a results delivered as of part center expense driven and growth to quarter mild morning. leasing another Thanks, Same in robust due management I'm winter. X.X% ahead our pleased by by grew to Steve, we

deliver growth earnings continue our leveraging and our to to of opportunities. key to initiative platform reliable We execute attractive strategic

ended our the the of rents XX.X%, our occupancy. elevating We maintaining reflects XXX improvement locking strong. remains basis team's extending expense and quarter in terms, fixed occupancy lease leasing to a activity high and Leasing tenancy This over and diversifying point commitment year. recoveries, with prior higher

consecutive spreads rates the average X.X% blended rent increasing spread trailing for basis XX.X% the improved our first XXXX. a of we the up ending XX from March eighth points quarter the delivered sequential rent quarter XXX for with XXx over reported We of rental This represents XXXX. in growth and improvement XX, spread of months

and XX.X% grew renewal spreads Re-tenanting rent XX.X%. spreads grew

drive of cost, occupancy demonstrated up This X.X%, is in to increases upside. points to ability clearest which the to our was rent of of is as rents the solid renewal the commitment quarter capture end demonstration by basis sequentially. our the further ability channel Our our XX outlet retailer's and higher

up first XX As of at gain the traffic expiring of points leases renewals quarter prior this or basis and rent year and first year represented for the quarter. positive of was ahead XX the compared continue executed Traffic the of end last quarter, XX% Sales momentum. in to approximately spreads. to percentage year's points double-digit process

Total in XXXX prior grew quarter the year quarter. first gross of sales from the

for outperforming stabilizing quarter improvement trailing the months March sequentially by is the core foot also tenant of brands that XX, our the end per XX ended Our the gains productivity from that trends average our XXXX. improved driven period new fourth are retailers, our square portfolio. sequential plus in mainly for sales exited stores from have partners $XXX derived for to This

media traffic spend results with Our which designed results our also programs, reflect drive measurable to the continued marketing to sales. on and improvement clear focus

focused reach greater with on targeted efficiency. media, more a are digital We provides which

QR identified including added digital all channels and to technology, directing Tanger and We our our assets centers, platform. shopper our of virtual tenant to services digital customers have easily directories, digital signage

and platform they enhanced offers continue from with limited-time day us. to every ability shop to our promotional as provides retailers, personalized and amenities same-day to access shoppers incentives earn with retailer-funded Our plus the

turn increasingly personalize digital can their our services, shoppers experience. As we to

platform, game We a scale to continue to unique Super quality quarter, leverage the Center, our our national our which from and In securing as opportunity well and which at weekend Armour hosted Glendale, party great Arizona given the our Under as success the on site. first on media Bowl Nike Tanger provides such a revenue of enjoyed campaigns audience. brands day NFL, we tailgate as Shopping

to our and portfolio. experiential retailers, are on-site also accomplish These and amenity, investing and shopper we in improve sustainable multiple investments F&B more update adding across continue Beyond initiatives objectives.

to improving In drive continue environmental efficiencies, on-site operational benefits. shoppers to and generation, the we experience, revenue addition

examples include capacity. state-of-the-art growing few vehicle solar and security charging our fleet electric security and vehicle increased A enhancements, electric

opening and team our this of Finally, on and proud anticipate fall. progress I'm lease continue we outlook. are make continue XX% our to development optimistic results the they and to Nashville deliver committed and construction leasing remain where grand our over our strong in we

increase centers value our dividend, for our experiences field continued engaging an confidence. reflecting and shoppers offer retail our partners. this in sales month, highly for Tanger and XX.X% this approved Earlier channel a Board our effective open-air shopping

NOI. their entire for rents with thank diversified I for headroom high increasing an grow quality a stakeholders to of additional of We and and continued team, all opportunities with support. to and shoppers, roster our growth the want platform more have our a tenants retailers,

over turn to now Michael. I'll call the

Michael Bilerman

some XXXX you, results, provide Thank our color going an position, financial to balance Today, on our our sheet Steve. increased provide and on I'm guidance. update

the with of ahead compared period. Same in $X.XX total year $X.XX fees. share prior for came the as Core which the center we on without FFO NOI portfolio lease increased quarter, for results reminder, basis X.X% quarter our a in to of per termination cash expectations a first Our present

and from winter. higher expense driven by from rent milder rents in reimbursements operating led Our in robust base the activity, expense strong part have spreads, was occupancy higher leasing growth gains which savings to and a

the this recognized achieved reversals comp year. growth reminder, we majority In totaled as last reserve the million XXXX, of addition, $X.X in as a which even we

grow leases higher fixed growth flexibility rental converting sheet well-laddered We our to pursue to leveraged, contributions, balance and Our our of with rents. to operating and conservatively also total results reflect liquidity the maintain rents percentage objectives. a while structuring revenues strategy CAM

have rate significant debt and We been expiration proactively addressing no maturities into our XXXX XXXX, interest February we the current have of swaps.

short-term equivalents $X our the lines At and share over $XXX our the and first or on end unsecured totaled million of $XXX cash full quarter, with availability a million cash credit. of investments

the additional our capacity the adjusted the leverage growth, levels. staying for EBITDAre below In to sector, X.Xx addition, our months XX, lowest ended retail while to providing drive in net XX March was our one debt target of

remain our will prudent in We to external growth. approach

quarter X.X% weighted fixed with end average XX% X.X rates debt a average weighted of at our rate our at of The maturity on years. term and was debt to

be do $XXX XXXX. that rate interest in will maturing we have discussed, of swaps million previously As February

addressing We have million and $XXX been of agreements expirations. date to have selectively these executed these forward-starting attractive on

years spring locked at fixed an extending X.X into a including have adjusted additional interest spread, of for with X.X% rate rate SOFR effective of duration XXXX. We us an in X.X%, the our taking of credit

expirations to this and thank and quarters. look We in remaining execution our for the continue are the with at we'll coming relationships, various opportunities pleased banking

our of an rest in the funding expense the $XX of of the our have at during biggest midpoint. $XX million Through the just remains we cash first to thinking end Nashville. the about remaining million terms anticipated moves our development cash quarter, deployed the In with the year, approximately of rest fund of additional

and and that $XX $XX between also $X million to which improvements, portfolio, capital across the our of million quarter. tenant anticipate that first continue allowances deploying second-generation spend We approximately recurring CapEx occurred million in with for includes

the payout with after continued additional growth. covered dividends free cash with drive recently providing Our remains company dividend ratio, increased to well our a low flow

our guidance. now And turning to XXXX increased

a is Core are a our XX and increase of expenses our new of increase NOI is to by FFO growth to with in This operating same a We performance. $X.XX. incorporates quarter operating range to including underpinned X.XX% expectations lower-than-anticipated a X.XX%. first increasing outperformance, by consistent point $X.XX center range This basis $X.XX strong to our for our share

details additional issued For see our last night. on release please assumptions, our key

anniversary on at XX-year property seeing We conferences, investors analysts upcoming which closing for last our XX are as and looking many night. we bell and of forward meetings to release a ringing tours, May well as earnings outlined the our in

up open to like Operator, can take our call now for please we question? the I'd questions. first

Operator

now conducting Ladies we our and be question-and-answer gentlemen, Instructions]. will [Operator session.

with Our the is question your question. McGinniss Scotiabank. of from proceed Please Greg first with line coming

Greg McGinniss

increase along to and regarding in? tenants because just of new a Hey, Shake see in touch Buster's. put beverage of that recently you're I Shack & and curious Dave release those I'm want that out if and just good stay starting to you any bringing visits entertainment on that or you're press morning. tenant, food time, leasing, And the types

Stephen Yalof

you to more entertainment, the longer purpose mean, XX it's Good more shopping morning. Those food of they're We're that a would spend shopping really finding last, The and staying when shopping I been which and sit drawing time of beverage, the change its say have come of of our the they're down, serve. community definitely centers looking to the they're to that adding sort for are more lot I people has and there. great they add communities and places we've that our to simple are a for when centers, more been for served months, centers, us. sit answer is practice yes. down now experiential, frequently,

Greg McGinniss

double-digit pace Great. the like to of it's on information some leasing XX-month six us months And hard Sometimes like ago? now versus what's just blended trailing spreads, of leasing Thanks. -- the between disclosure. other the read kind at How you spreads. of look the then lines today looking gave leasing

just give those the us that a of are rents on So of pace signing today you and little types more I'm clarity kind at curious tenants now. of if leasing could

Stephen Yalof

are the nail partnership we page coming talked store both one retailers in new a Yes, in us, doesn't with issued. on those they're head that Palm There's you overall, properties. that They're Beach. say Nashville lot into seeing new managing about and release to several. activity it what at amount and the that Look, on in to on leasing But and retailers the recently Tanger press activity There's activity leasing the center with us. the entered doing is to Inn not of just been of the Clarion leasing our join when we're across of hit portfolio, we're you that strategic doing some of platform a tremendous new shopping and a sure.

here, of right us with the now. Leasing. Sure, a couple Justin Executive our of share Stein names doing tenants he's of President business he'll are maybe sitting Vice some of that

Justin Stein

Yes, Greg.

to portfolio. recently, we're and Steve on furnishing some multiple way as & with a the within diversifying design Casper, that Steve the as said, leased home big especially hardware, in tenants restoration we're So, reach throughout And said, our our we've on these doing of Invicta. brands sides Crate deals Barrel, portfolio

So with activity definitely leasing look and the these to is progress continuing guys. the robust, forward we

Greg McGinniss

with just for on maybe there speaking where of to just you're I'm I'm about before. sorry, QX I and hunger demand in sort think greater any teams a leasing investors openings clarify year curious retailer stores someone opening just moderation seeing like a year-to-date. was and in there's if that of last through management talk listen to store it front, that seems the some year,

Stephen Yalof

I clear Fortunately don't to finding be as a lot are not. in of we're customer. outlet In really of a them. optimizing our inventory, new our is but get front retailers a excess destination go-to want of to channel, for what

hasn't So the over velocity past quarters. of much leasing been slowdown in there couple

Greg McGinniss

you. Thank Great.

Operator

Thank you.

Please from KeyBanc. with is next Our with question proceed Thomas question. coming your Todd

Todd Thomas

Hi, thanks. Good morning.

capture was in revenue emphasized efforts to you aimed expense recovery leasing quarter. also higher, reimbursement that while were First expense the down rents, Michael, income higher expenses have but question, base and dramatically

balance this in Should that range XX% high and mid see in of up bit I it we going expense had throughout where it to forward which the to more is was quarter, your historically, was rate the in think recently. expect ahead? the XXs, been range the So reimbursement but year the stay little XX% a

Michael Bilerman

Good Todd. morning,

the really base driving which as on So quarter. operating first our is expenses, And reimbursements. strategy this well quarter you're benefited also expense the lower focused the from leasing were but leasing right, as strategy,

in managed -- And also our this our little a the we quarter. fixed able but spend to CAM, the get expenses timing our related some there of and bit we've were so was first of advertising quarter, to

a perspective, will higher the so And be much last but strategy year we overall. it come than down recovery is were from leasing in

Todd Thomas

Okay.

on will there there I be operating of at is suspect are your of results? the based your which exactly weather quarter's those the in related that from portfolio, actual the an I on So a expense To of warmer end for expenses? recoveries on at sort what the periods? guess portfolio? how adjustment fixed tenants the the CAM, side? all impact in work that does year versus will bulk was And to be the based the this operating on budget tenants future the And reconciliation

Michael Bilerman

I'll the second, well a So then to timing bit to was within bit and million pass probably little there And the million for I'll a of $X.X a take lease talk milder $X year. the little about The to that, the it strategy. overall. as relative winter, we had to our savings rest Steve of

Stephen Yalof

the and to CAM a a fixed your amount retailers and in just it's numbers fixed of CAM, accurate rata you fixed not out the old us. hoping a are dollar easier for on getting easier but was lose certainly CAM, for businesses put that's that. Pro in may pivoted And you lot model CAM lot CAM just each $X.XX. some you're year, years, you're an when your And

Todd Thomas

Got it. Okay.

in of the related component. variable fixed So to there nothing CAM sort

basis converting up lines rent base last Does Okay. same-store, question, expense rent growth rents. change here. in think more I strategy, income, leasing for we the guess, was fixed was how with then growth occupancy along capturing should about your X.X% base rents I those that to And up guess, but XXX recovery points. just percentage

You have escalators. rent

you quarters I what's there. guess of positive accelerate? the to are base from rent base talked improvement straight about growth holding And back spreads, rent eight expecting leasing growth accelerating? You've

Stephen Yalof

that's of other centers. big base marketing a a our do estate of and marketing that we part fund. about a The our is when of Our rent we shopping base to CAM. pay into a a we lot number mean that nets drive we fund report include shoppers lot rent deal, how fund, buckets talk marketing lot We've triple taxes. built retailers I our real

marketing speak to the own don't our that's retailers customers and I But it why seen as component. robust about and capital why an the is rely robust frequently team shopping on heavily to not base as not is, that's -- their very outlet us marketing in it's an those drive rent reflected do fact use That's it's important numbers. so. center necessarily to

Todd Thomas

Okay. All right. Thank you.

Operator

Thank you.

from with ISI. is proceed your question question. Our coming Evercore next Samir Khanal with Please

Samir Khanal

environment when how Good to sort now? sort right look of Can I given morning, And Hey Steve, do potential you occupancy the the of at temp strong of certainly sort to growth, about macro thinking very how the tenants much is ability everyone. here? to of a year-over-year, conversion XX%. are a of close slowdown perm you occupancy pool us the remind that that

Stephen Yalof

look, we So space occupancy, X% have unoccupied at XX% a of our still portfolio. in

growing That's metric. an job over to year. a of basis the So occupancy course last done our one looking We've that's good that grow. pretty to XXX and the points of fill important us, we're by

somewhere XX% as we days, as range in decentralized twice that as high probably a as those pre-COVID. in back averages, today. historic But is team temp are again, weren't we probably Our as

decentralized as heavily do we on our general managers operating to So team, really a of shopping our centers each localized rely leasing. of

beverage, the in centers. whether an the experiential that of drive our bring entertainment, food customer. the important component in it's best retailers communities that's best of And serve, we It's a -- part we or that and

much our tenancy space So provide needed also centers. we shopping variety keep on, and look to only to to that not to lights but fill a

on the just of tenants best those that from who go a we've those built We've of shopping could the to team see short-term of retailers and lot take also that team, -- will now shopping best focuses center temp a our leasing centers.

a So our not business the And growing only to have of our but stores number that them can too. start business, part that converting we temp an that's increasing they important from long-term, of in portfolio.

on that. the focused we're our one leases. part So important most remember But is temp that to that's aspects component all of

control estate. We that real

days You've cancel to got XX leases. those

considerably than in to they're short notify back perm. it past, long-term from hold really doesn't said tenant business. order, a other rent of leasing somewhere can any to is core space which rent if in So Xx a we've temp lease, that a Xx between long-term when get in we the more way up sitting that the so We activity, our

Samir Khanal

external Thanks for my and maybe that around that. the And the exist. growth then second I guess environment question leasing is opportunities

I guess you the You've strong demand. growth got are thinking talked you've Nashville. about in how about external

got sheet You pretty balance stable here. a

would helpful. So maybe be color any

Stephen Yalof

and business that operating Yes. and based impressive Well, results on managers leasing, model, operating a them, partnership add our a owners, centers. value pretty JV contacted marketing discussions competitors lot operational that can built we've larger whether a one-off we of an and number and of this look, seen, shopping we're this have asset -- acquisition you've us, opportunities the or it's in those with to to

leasing you the take example, money expense of at since Beach Palm some the far done taken we've feet manage properties Palm also been efficiently. more we've square look we've and if the transactions, XX,XXX out just over P&L of Beach, a to And

it's and narrative I going think that playing to has very opportunities. in number a not that our about of lot space. team a talk those of been Obviously, -- our but we're we're discussions a considering acquisitions out done active anything is deal, until

Samir Khanal

Thank you.

Operator

you. Thank

coming Goldman Caitlin proceed is Please question Sachs. questions. with your Burrows next Our from with

Caitlin Burrows

last morning. XXXX the or and below you little expire for is but year, to Maybe release you percentage this which mentioned of maturities. and process executed on still have of Good year, XX% 'XX. is mentioned earlier set lease everyone. points how space in a earnings Hi, The ahead renewals it XX

but limiting kind driving just pickup maturities there XXXX, what's was to pace of is levels a historical from in of XXXX. wondering getting it year-over-year large amount the and for in I So

So to of wondering early if can kind those not. get you or

Stephen Yalof

say good and Well, see we that morning. first in to as you opportunity. see have referenced renewals, we that all, XX% of XXXX, we that I that see

in pricing We've continued power. own quarters drive got We We got have spreads. eight opportunity our of rent. think we've increase the to additional

might some holding rents a in get than because for today results speak are getting for longer the we the this taking space price. so taken bit they XXXX and we're negotiations out And our little back, of We're themselves. have

Caitlin Burrows

release out from to selected about and be? talked gone the & And locations then outparcel press talk the portfolio Shake Could you parcels. could outparcel Okay. what opportunity through then Buster's how that week those you've back just earlier extent this about Dave Shack And the activity? how for the big see were to to

Stephen Yalof

an over -- without in Well, we've the of as an to XX% It's this us number how monetize giving got we outparcel could pretty land that time. over opportunity it's be, our actual portfolio give of robust. big on think opportunity if will properties

X.X Arizona We also our on acquisition the the Super Bowl I Glendale which we NFL hosted GameDay. Shopping made talked acres party of tailgate to Center, earlier, the adjacent in about

is space. now right under a the add relevant number of all that infrastructure path add on renovation That to to

to we the the that -- communities find access our and and want serve, we So of the to retailers have the centers sort our energy shoppers. seeing they shopping of center that are

yes, that, particularly draws. The enjoy center the flip Shake shopping of the benefit of our Shake the really Shack side the customer, with will Shack,

and between is got external focused that symbiotic a And our piece land peripheral and we've our monetizing great relationship driving team retailers. just the growth of a portfolio. it's So us on

Caitlin Burrows

Thanks.

Operator

you. Thank

Please Our [indiscernible] your of question. next America. with with from question is Bank coming proceed

Unidentified Analyst

that more allowances -- remainder of pace earmark the color what the this million realizing throughout come a anticipate you I provide hoping in already tenant of of from the million good of normal forward? first $XX the guide year, will a quarter, $XX was the capital primarily CapEx more balance your or if be morning. just what on to and do you improvement second-gen whether $X Hi, million bit cadence could as going CapEx

Doug McDonald

side. million is that Thanks, than say renovations and our would the I Doug. from Lise CapEx to is This $XX $XX that leasing to more [ph]. of come maintenance going million

the and know, primarily offer we've occupancy renewals. bulk you we the heavier the levels re-tenanting allowance at, only where with on And expect drive tenant piece, we of been on recently As leasing. they're the renewals our will

move few be of I'd of a and the the In timing throughout and well-distributed renovations, fairly that specific at but year. terms say there's centers around a rest of to certain the bit, it's little projects going

Unidentified Analyst

could a Thanks. I regarding new Great. assumed hoping thoughts them? ago Are potentially restructuring for And was quarters really I is an guys in optimistic couple give RueXX, which you anything on update -- of Justin about them turnaround. any there and being know about communicated Okay. their XXXX on guide of there the sort

Stephen Yalof

Lise. Yes,

with relationship they in I'll on very deferral is strong. healthy So situation they about with feel recently current our restructuring to of as seeking We RueXX to assist we the know, what only. hired all occupancy that firm They're all a the address our rents. and at portfolio. we're that our it's And well-positioned operate a say needed, as

So that an this specifically is we situation this tenant. believe to isolated

Doug McDonald

bad of guidance levels appropriate tenant maintain we issues. Lise, account to any for debt within And our

Unidentified Analyst

you. it. could I ask more. Thank And one Got if

on or converting have the make if to perm. to stay there? new there General their with note any on lately anything longer signs or Are convert to had perm to on your wondering new of conversations tenants reluctance there's Just Temp Managers end of

Stephen Yalof

anything think and a been -- new there's that It's we've price that not are to platform a some good interesting new just Outlet animal. slightly call think your that added of full different I goods. don't selling off-price selling to number our to there's success. What's retail, is is I outlet. out. brands you're you're direct-to-consumer

lot a And these quarters channel. clearance of find retailers, couple a their of to will take it It's footing. them

marketing consumer helps that profile our understand how geographies, shops. channel understand where they're our better, that the of and retailers stores, the operating part as place team in team a have We consumer actually understand

shared are we So because have leases call into a retailer bring rent partners them, component is branding their their many our a quite very percentage retailer of supportive we of and customers on these the to heavily our like team success rely as as their success. store. to and we, But

Unidentified Analyst

Thanks for the time.

Operator

you. Thank

Our Point. Please next with of coming the question with Dijkum proceed is line Compass question. van Floris from your

Floris van Dijkum

results that like? Thanks. pool couple revenue, prospects other a that's here. what Good I there give obviously, little for -- and -- go Maybe grew but big of questions. look and into know in the can more one, Number follow-up. touch A if encouraging your that I'll of of could where push time. Obviously, a on guess, that a can that bit, I same-store little you and with set a start on couple you if my your been that over color bit Steve. your then come back morning.

Stephen Yalof

charge experience our Sure, you to one all we can trying good centers. how we the the initiatives a that and can morning. at day, in actually can -- selective you want you add I this prepared real shoppers about component that Look, we're shopping the add kiosks make and enjoy. we additional the is new of we're to stream. to with pursue earlier additional we But be Look, important the think that an of rent. that's revenue digital And to part. can sure the talked that adding And regard end remarks lot carts shopping

center in -- national lot to for they three want of business success, national the four those portfolio, a a and us, lot do say, they they're easier centers. in or to XX each at look because with and I of over quarters shopping would take brands are our had We've with last brands

centers us XX do make deal and exposure always to to So clutter. for of shopping great less far are one deals

So a only cluttered -- with desire we nationals keep our by these little capped external less to shopping noise. continue to centers pursue our

Floris van Dijkum

marginally obviously, down of mean, us maybe assets, portfolio, plan in tenant Sevierville but sales at portfolio as also premier follow-up, I Deer Park, bring higher sequentially, I assets your your are, a And those are essentially But leased. of are obviously guess you grow walk how And can year-over-year, then the Branson, grow sales of they're guess, to got Haven, are in you I -- up look sales a South and Gonzales, two my sales. assets you your that I XXX% commerce, through, NOI XXX% but when if assets Hilton I how you've going your Head. of mean, grow number how to leased? well? already the number your

Stephen Yalof

mantra machine marketing, market I marketing, far the great -- would leasing over Well, is mantra shopping as the leasing, got marketing. to centers, here. what's not we a And leasing, of of our performance-based gas as We've way after working. We things the we actually working are marketing, the not the our working, are know that pedal take that things the off what's we on accelerate and foot working.

What's important our view customer. knowing with customers driving is communicating a better for of us traffic point that from a of doing job

learning as digital as from initiatives, -- digital we -- initiatives technology, web much have new with on other or it's the learning us. customers whether them we're interaction So the from on the digital our app customers that -- our

Floris van Dijkum

but front? in your this on know Simon give tenants? doing are discussions kind your outlets. you it's progress of talked we I I for questions its terms previous and more updates the can Sorry, haven't have higher heard productivity, starting, And you we've suitable -- and guess past to you tenants any And your think I've of that that calls, asked just but on assets outlets. this in been about on luxury how on us updates well, that to many bringing as has of any

Stephen Yalof

asset at we the and can you choice. build has our we have the we a a I lot and to are centers think look that think that tenancy. handful geographies do Look, continue successful want of shopping most going our pushing although the that that be retailer's with the to the of are retailers I take base, with a we think that tenancy, in to to geographies push we

we'll open the months. of Nashville, which next You in also that know couple

the of retailers lot there. a announced haven't We

right little now the and to And think I our lean bring And tenants when us we we a to more brands we for markets our because well. those serve. you'll So those we're the that see to heavily give chance But join are retailers looking lot a that centers that's pretty into you as the of reside. a Nashville. best shopping push want success to household organization the in in community-driven the names initiatives bit communities surprised where a coming us, be possible digital roster again, communities the best for serve of are

So that to in retailers as be the they laser-focused sure have making can the we're as continue luxury when shopping of our in experience as important they as extremely on shopping merchandise them, be. lease the the but retailers successful as that going that can and we shopping we best -- luxury -- are a be shopping to component and we'll centers part there handful that for sure around centers have shopping is so centers they're have make can those that, consumers

Floris van Dijkum

Thanks, Steve.

Operator

Thank you. The next question. from with proceed Mailman Please with Craig your question Citigroup. is coming

Craig Mailman

with also. Hi, good morning. I'm outparcels just the me, line curious, got this Joseph of I been in the on talk on kind some there's call.

have an spending kind more done are funds? capacity, more forward thoughts of of this you returns initiative think of sources a Kind capital. basis and how your on on as we bit annual with and your here Nashville, guys a bit also little getting about you going Just little should on

Stephen Yalof

return basis. a pretty the some leasing for the condition in with time. getting, you in to of capital -- that low and relatively high the just We've a space we're we're required dollars take The a owned at estate start We're are rents and returns a at the leasable bring XX% some nominal let's teens improvement of quite couple Well, up had and on low that's with returns. look very ago that is -- those a We on investments. weeks astronomical. at real outparcel looking committee order if deal that to

Craig Mailman

construction? Okay. of ground from funding targeted out And should think of also we play then the then how to volume a necessarily kind you kind not it capital think as guys how most opportunity where mix out and a identify maybe putting you're you're of here of mix? candidates lease opportunities dollar could guys Or you about the where or kind

Stephen Yalof

provide deal, point or concrete And give the you whole just can of return-oriented sort is to do ground that it and we're return. retailer outparcel the lease order doing the that really of we worthiness whether in We're we're the an is are we I only it's to on the when do capital We not that land sellers. leasers. consider you allow a construction. and Look, the the credit Yes. build And focused deal customer deal, basically with. business that we

we've Dave deals So a outparcel that really Shack, that us. number lot, & our we about lot, about where we've deals Shake are deals a of also for good good deals but Buster's, done, talk customers, we made talk there's for a

Unidentified Analyst

are It's bit guess, thus interest you've Nick How far. expiring just I Craig. with rate execution a third Thanks. the floating are sheet, a on swaps of dealt kind the with, here you or about debt? Michael, the thinking more with remainder balance rate of that on running

Michael Bilerman

Good morning, Nick.

of would which an can floating we Spring continue effective February. some take or X.X as that we've million effectively to more go to additional come several to look of going that And next fix And at you're we're us million quarters of and debt exposure rate. the leave rate it XXXX. to floating let floating to floating of So opportunities debt next have for of we that will fixed $XXX out, over potentially years, $XXX debt rate pointed anticipated the

spend think a $XXX if anticipated million. and about our the for FAD just I cash of And we've step between about back $XXX million from you second, capacity we it of current Nashville talked and capital

the free after even to rate our equivalent cash debt. current we So significant almost pay flow with we sort into before dividends we generation our the floating account of take year cash end

I move there we about XXXX, so we have as as into debt. having XX% floating and level, at if some XXX think rate look comp REITs out think sheet, the average And you about your

sheet so as go strategy mindful earnings having we of floating, also fixing but we're And forward. some and of reliable providing our additional balance amount

Unidentified Analyst

Thank you much. very

Operator

from question Please line Mueller your Mike next is of question. Our coming you. Instructions] the with with proceed JPMorgan. Thank [Operator

Michael Mueller

Yes, hi.

couple of on couple prior quick tweaks a Just of a questions.

and any the there in another that about tenants? Or anything start second you to question it into permanent on goes them the happens development. here meaningful there works that CapEx convert we see possibly or Is is First, the two? is in year then temp once the where is could just next

Stephen Yalof

of We that nothing mutual ready talk They're to inked with on leases, temp to like don't capital right to no to tenants, talk terminations with about then until deal. tenant things days. now. working involved really about we're regard XX And rights Unfortunately, short-term the they're go. of there's temp in

Michael Mueller

Thank okay. it, you. Got

Operator

you. Thank

Khanal your with question is from coming ISI. proceed Samir Evercore with next questions. Please Our

Samir Khanal

you. time the misunderstood under sort I biggest for that have here the you been hood. think? been misconception by of in the investor Outlets community general Tanger look to What's Michael, a you guess or What's or analyst Hey, question about now sort of

you on that's What to from are seeing that. you trying get the misconception base here? Just view

Michael Bilerman

it And side much the last they I how a versus the on and they quarter, that us of and we community the quickly talked the consumers in front values us. in value that and where felt have perception about of quality opportunities assets, mentioned us. I base retailer that how I investment of of there community where was terms much our a perform how disconnect growth reality little our of bit are, asset

out and like at there getting people we debt-to-EBITDA And is really appreciation now our the the as investors marketing through we understanding we're EBITDA because spend -- I a analysts the feel balance and strong as more I money leasing, commensurate bit sheet, a how little assets operations platform elevated Nashville from time without think is tour which our Xx perspective spent and for also better yet. which a on

that how is and that intensive asset on growth, cash the We to operationally is to this really capital of differentiated suites account another with external be we that company. really we their having external significant what's want really operating balance us value. at that a relative And the would have and sheet go a our a to company and And capacity into out me, velocity. want very is add distinguishing small the to growth. factor a takes end have. be to raise And that new execute to base that to amount But platform don't buy and company buy-and-hold is

continue excited assets And to our to Street the platform. show to our our we're and so overall, team,

Samir Khanal

Thank you, Michael.

Operator

Thank you.

our question-and-answer session. We have reached of the end

So back remarks. to Mr. floor any like closing additional I over to would turn Tanger the for

Steven Tanger

you everybody, the much, Thank open-air Michael what said, shopping add want believe is we Bilerman centers. to for biggest very participating misperception today. might Samir, I are that I to

wrong should considered analyst the listed malls in to Our be We be group. closed we and open-air and compared platform community the by in other is center not neighborhood. may shopping the

So exactly why Goodbye. we of will planned great the our and the we luck. in look next and see community you properties you different of various couple believe are wish and you at and open to a that they showing forward air that how the have analyst rest and events we day, good centers. months I

Operator

Ladies and conclude webcast. and gentlemen, does our this teleconference

time, may your at have day. You disconnect and lines a wonderful this

Tanger (SKT) 28 Apr 232023 Q1 Earnings call transcript