SKT - Earnings call 3 2023

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Ashley Curtis

Good morning. This is Ashley Curtis, Assistant Vice President of Investor Relations, and I would like to welcome you to the Tanger Factory Outlet Centers' Third Quarter 2023 Conference Call. Yesterday afternoon, 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.tanger.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. We direct you to our filings with the Securities and Exchange Commission for a detailed discussion of these risks and uncertainties.During the call, we will also discuss non-GAAP financial measures as defined by SEC Regulation G, including funds from operations or FFO, Core FFO, funds available for distribution, or FAD, same-center net operating income, adjusted EBITDAre and net debt. being measures included most and in in supplemental call non-GAAP financial comparable in the these for information.This are rebroadcast measures our is future. of to of directly the GAAP our a Reconciliations period for time recorded earnings release

Chair; information today's call As it Executive date, Officer. and Chief Tanger, XXXX. Instructions]On the time-sensitive November will and to only be be our management's comments note Financial X, Yalof, such, may that accurate today Executive Steven Bilerman, important Michael Investment include Officer is President that Stephen as of [Operator Chief and Officer; Chief

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

Steven Tanger

thank third you for us and quarter call. joining our for morning, earnings Good

we Ryan-Berman most consumers remain of in to quarterly and XX end will will announced, Executive Board with of transitioning participant.Since participated be the current longest of XXX active I brand earnings In Director. wanted my from an marks one this to my of this my company's business companies. earnings successful I year. at started Chair world's transition, conjunction call the as from I will the role this Non-Executive name as a Bridget the Chair streets one that the have buy as calls, Board lead Independent with the approximately last previously As be ago, consecutive REIT hunch And in industry. which father proudly Tanger's years IPO My the XXXX in directly

very continued bargain, in we X,XXX represented in To see we a distribution tough Center emotional. the later, with of have for and honored vision opening smart to team Directors. privilege a your part and stores. remarkable good now over outlook. our work and in the the of a participate thank Tennessee. strategy more like employees to in have need XXth has all in times, not life I the long-term be and Throughout proud I of also of are to such where was Tanger XX our than our such retail more of a cycles, call company people was weeks I Board only and the come to Now team devoted brands in a times, is to over be A could not to channel.In It ago, resilience been CEO, turn ribbon-cutting the of The the Nashville, we Steve and leadership outlet our bargain. couple proven but the people economic years approximately and today want Tanger in portfolio of confident in the celebrating will bright.I XXX Yalof. latest future incredible dedication. very the a

Stephen Yalof

to and I'd to first delivered thank you, his I'm continue year as operational guidance. strong the contributing earnings see increase We continue, earnings growth carry and morning. for history us for positive an will and forward. announce vision full is to good our we his anticipate Steve solid leadership in to third in Thank our quarter Tanger execution. momentum pleased we leasing throughout that trusting like which to

basis sequentially at and We've end XXX and past the points XX XXX occupancy of points third of X.X% a diversifying to In years. over authorized up was basis at total the drive quarter, our continue delivered we the XX% increase our basis Additionally, in NOI recovered same-center points X% increase.We mix. Directors while Board recently nearly tenant the year-over-year. occupancy quarter, of dividend and X rents a elevating

including past XX XX% million than leasing We spreads transactions, positive of as and than the over continues on more be Nashville. volume period. mix nearly XXX XX% activity renewals XX% more year on rent of with Tanger of expansions growth These X.X months.Leasing renewals the leases feet new core prior from the square rate portfolio comprising a include to lease-up in This over our of achieved have space, brands, increase represents transaction also we re-tenanted strong brands. portfolio XX% GLA, a strong with of rental executed to space and

to to to more curate opportunity were momentum permanent categories which since continued year, additional the We the confident and continue rent we fill States brands, Tanger down including to Nashville tenant in first This shoppers external platform the of realizing athleisure intensification introduce our acquisitions. lifestyle restaurants, mix on selective in foot growth, our with convert as and we drive local tenant in and rent pursuing our continue square our ratio sought-after were strategic well options.We more discretionary center for quarters encouraged foot and square leasing and provides strategy to spreads, confident asset new challenged, global while up Leasing cost and national and the diverse athletic portfolio.Looking the XX same-center temp XX% to tenants macroeconomic crowds stores peripheral outlet quarter, XXth occupancy offer to growth embedded strong categories value food beauty sheet flow, and plan and to and we uncertainty, and robust continue basis national a alike.We Outlets dynamic of of our generate utilizing as and We our maintaining categories will balance channel the realize market is in our cash and compared of come while remain GLA opened of XX.X% restaurants development new new we home renewal. local saw space for last and since recognize sales gains. grand our presents and prior remains liquidity, United designers monetizing and through a a we'll brands slightly our an and free throughout retailers driving and temporary conservative unique core sales. and tenant ahead per positive continue adhere delivered saw consecutive property exemplifies and X the popular activity evolution upside.Traffic health mix our ground platform our to open-air have execute deals opportunities Nashville, stores but category, use We and diversify strong to XXXX. next to brands to is as of our total broad year, and to there by the ABR with XXX,XXX our to leased, opened With growth. last as massive ample entering including growth positive and Tanger rents. experiential to our rent point break the center month grow ability principle opportunity to mix. to remain by increase further additional to and the continue we total This brands.Tanger land initiatives

a call now team strategy, turn best-in-class like retailer We would like and executing Michael. on I to with our to stakeholders them have the and to this over partners, grow to us.I'd thank focused for and built continuing shoppers

Michael Bilerman

external our discuss Thank ahead which I'm Today, budget, guidance. our going growth financial in end our sheet initiatives, to you, position, our I'm results, our and increased to of with Steve. strong balance going XXXX came

out-of-period the a NOI and quarter of debt we a FFO rent cash of of equivalents year. of FFO.Our and position last strength. for quarter short-term had remains in the $XXX from our recoveries share $X.X and fixed billion which some in compared have pro balance results million came collections, with quarter in At third maturities until rent X.X% core the expense quarter, XXXX. approximately $X.XX and to $X.XX quarter debt no share have end both of strong higher totaled in the and occupancy higher of benefited gains third expectations $X.XX of debt of the rents led in rata of the increased at sheet late investments. of and significant third XX% rates, ahead we is cash Our and a by driven our spreads, to recognition which base Same-center

our availability credit. unsecured full have lines million also $XXX We on of

XX, This and and Our with net was adjusted significant remains capacity ratio. the combined well our our with the ended low in X.Xx to cash of growth initiatives.Our the covered debt sector. leverage, a provides pursue September one months fund payout to average XX lowest position, retail REIT dividend below cash EBITDAre continued for the quarterly

In is at fixed terms our February of million our the proactively expiration points. interest XX rate rate of that $XXX swaps hedges, we SOFR interest address continue to debt adjusted the of basis on 'XX

current third have $XXX X, expire of million on the will varying we through next to current As the a cost sheet narrowed for predominantly year. the of have in forward million X% which to expiration we 'XX, swaps years debt the of and new these with million, the so fixed rate $XX of opened rates range February.In average at quarter, weighted once These few Xst this external Through of being the February terms higher successfully recorded of forward-starting of million have of balance quarter, which we XXXX, January spend base another SOFR entered end start adjusted quarter. fixing million costs swaps swaps we're the the effectively Nashville that impact to our swaps November statement into and the X.X% next leaves against commence average, incurred the factors. maturities at of swaps of of on upon and a income growth, the $XXX does new $XXX midpoint, interest new X.X $XXX the fourth compared during have

to along strong the significant sheet a cash after we capitalizing We the continued interest the and flow October project.With additional XX, to liquidity X.X% we and opening on low effective ceased balance estimate dividends, have leverage our free continue X% opportunities. optionality growth to yield position, on with pursue stabilized with

of a an turning approximately financial XXXX of third at includes and outlook for ATM. to maintaining our flexibility, remainder prioritized performance in the quarter, reflects opportunistically equity, have which third we repeat, credit a share the improved issued In amount $X.XX, ] an $X.X will which million We and [ of year. including the guidance, increased line which small $XX.XX our approximately the not better-than-anticipated for accretive deployment.Now undrawn quarter,

NOI also XX.X of growth for same-center to of point the from X.X% midpoint at basis new the expectations currently up $X.XX and to core our an narrowing X.X%, $X.XXX increasing a by are FFO X% We're X.XX% a expectations We at range increase to to to or our midpoint. $X.XX. increasing range

the high and $XX tenant a to $XX down renewal reducing million, to timing XXXX million also are from We $XX of recurring certain projects to $XX million CapEx continued the to anticipated in range due rate. million of

property NAREIT next scheduled in we're partners and see on that, please release couldn't our events March. seeing you've upcoming last And our Marcos shopper, of call open For and in tours. platform.And issued many to to guest retailer pleasure strategies as in assumptions, our at our our has show including as with a week Tanger action. Palm upcoming love key organization many been in forward Charleston, visits shops assets an our Beach, like more people, additional brand so you seeing as this sell-side value and the details looking night.And to Deer for to in many been and Nashville welcomed be next we assets our center upcoming Myrtle off the We Riverhead, L.A. our conferences, of proud Worth, as our San now and well greatly that highly financial guests able questions. Phoenix newest a including our Beach, experience as up National It Park, assets and Fort I'd to absolute our to Harbor, have year, stakeholders why

Operator

first question Van Compass Our comes Dijkum line Floris Instructions] [Operator of with the from Point.

Floris Gerbrand van Dijkum

NAV issued stock Is quarter of a that -- the are? $XX.XX little your you in during think [ you of bit at around shares the where the Michael, ].

Michael Bilerman

of We to out for issue Good prudent deployment. disciplined shares to want capital morning, of accretive history have balance our view don't a the views their NAV. stack. to XXX,XXX all XX-year going on be own just Floris. there and we took we're a And NAV. sheet, the strong over maintaining of opportunity at analysts have comment our Certainly, of We and

Floris Gerbrand van Dijkum

Maybe if up I can question. follow with one

obviously, your XX%. growth, In your terms at is occupancy of

You been the it's really how leased impressive -- guys you've space. have

in here, if -- talk from comment a little on You're why hard lease space is how, Tanger grow bit going Tanger of relative your exceed to current its renewals. it's upside of, forward? can in it, spreads X% how speed can there the NOI get more. How much cruising key could are occupancy Maybe call you solid your to same-store on maybe go view, you But view? forward? the growth about where getting on temp going drivers What that --

Stephen Yalof

asking It's the Thanks Floris. for Steve. morning, Good question.

all, year. First for fortunately, us, space every turns of is

which you'll we existing at past than in a stay So the done of a which over we've tenants voting XX% see re-tenanting rate. pipeline our a in churn And spreads, renew, centers, success our pipeline, higher they're about got had that to at and in stay upside to it's And take currently disclose. some fallout, there's XX%. we've pretty ability we couple big space that rents see in our years we've Also, great rent and the if basically paying. at look you the renewal much shopping great at

their opportunity XX% great occupied may look, for rent upside.And of drive to that Nashville, and XX% are sales that tenants this first from therefore, -- of great rightsized us, done asset further stores over to retailers. great is fortunately, There's our from center portfolio manage aren't repurpose or half job us point. new and shopping than with necessarily them tenants new view for adjacency additional there see a Tanger the our fleet, portfolio. own tenants. by tenanted at the a no oversized that replacing Look be with holding to adding continue a we point So We've

retailers put to first in Tanger entire continue portfolio. We our

Floris Gerbrand van Dijkum

portfolio opportunity well? could And you maybe on temp if in comment to the perm the as

Stephen Yalof

]. saying as We XX-ish our growing said, on are temp like our we've I occupancies [ Yes. been high. pretty We're percent currently, about around

I'm open a the it as there's put And and before, don't short-term as flows, square because store far difference space and customers concerned, keeps to X our the of tenant available in knows in as portfolio, permanent this closed a said XX and tenant difference space but again, of everybody tenant, far a we'll that between lights it you say store. I've an between foot on. As the I'll our know cash a

As that far us see great space a keep we opportunity warm. for as as I'm concerned, to

the got great control termination. because for have a most We part, of of spaces those XX-day rate we've

So us hold entire deal a and deal, for the definitely up or never to accretive up. that a a it center ability higher shopping longer-term deal slowing will make is the is to

Operator

comes next Our Doykan line of of with from question the Lizzy Bank America.

Elizabeth Yang Doykan

of in in if the just traffic opening sales. I regions? comments on just That were there a specific wanted the talk to would back Could notice decline observing sales average trends any to we the go and about decline be across tenant overall or great. drivers to certain categories

Stephen Yalof

it's outlet all, price of of the less retailers, product, not promotional. trend, control trend our first the about retailers. a mean are the And and we're talk of at And far in point. that expensive price our environment, promotional And Well, right to is more selling now doesn't they're less and forget want retailers just outlet becoming center don't platform, we Sure. platform. sort selling center an definition, sale you if by they're

highs A with a overall foot still down our sales the format apparel XXXX the brand home well. foot of as has larger square per lot effect strategy the that or of But lot business.But brand the the basis, diversify in continue on foot. a health and in stores on have XXXX of athleisure comeback up performance beauty portfolio sales per as might and levels. from sales an the to of over that we the the like stores uses performance our are square although square categories remember, to categories, do Our of per is and athletic

point how rates, if of a I is numbers. the getting at from look the is performed of the are SSNOI our renewal view, Floris in NOI. growth retailers our proof an take our said strategy we've that And you of to growth Our XX% we're renewing.

access access to electing and for So channels keep that utility their bricks-and-mortar renewing share their the space, if outlet channel. basically value-priced in store exactly our the they're operate, over it's what more through for they're used ability product, saying of to and that and comes to claim clear branded clear pay XX% their use other customers the to perhaps of for, product distribution inventory, renewal a

Elizabeth Yang Doykan

ask trended this changes to exposure to just minimal, VF in to I seems with And pretty about specifically It the around see any but Okay. wanted wanted bad list quarter? that just current how and Express? thinking watch

Stephen Yalof

Well, look, list been watch as our is in it's as tight years.

those on with far regular touch As that those you've brands. brands we've as We're the with both recent of brands business out, a basis. in called done

us You shared Express right the foot great just out Nashville with Express. did a square box. opened just X,XXX store of and

brands perform. for ones have last they are profitable restructure, those In want to experience, and restructure are reorganize our typically to continue stores because brands trouble in the the the when outlets the the them. are most the that So they ones the

Operator

the Our with next Khanal of question from Samir line comes Evercore ISI.

Samir Khanal

in when it think next to mentioned expand does of Maybe off I new you your this Steve, how start. set obviously, about pursuing, Can a the you is bit? talk I point? you that at on you about little external opening good remarks growth. talked look -- was opportunities for about selective like a guess, Nashville opportunities

Stephen Yalof

discipline like marketplace Yes. shopping group, -- Look, center of shopping consider expand. in open-air in that We the looking peer company for for our ourselves we out and an operating our to platform we're opportunities leasing, centers. has most marketing great

going those rate, to us shopping the managers. upside we drive market property for revenue value, that our they're operating in of additional and we're a meets there's shareholder we can center is that take and the in we opportunities. piece asset And grow think hurdles, because really and to if important are I going advantage find think

Samir Khanal

I you bit but down have in expand just Maybe quarter. a big fourth then on on the know ramp-up driving a guess, sort the here, guide Michael, the And what's do quarter went of CapEx assumption? side, that, I Okay. next little

Michael Bilerman

Sure, year this overall X of higher building than CapEx, our year And which Samir. at When our was about components. within historical levels. beginning there's last we the talked to back year, range, we've be CapEx to the that going been

The first is a and the putting our allowances, us chunky. not CapEx. it of renovations, we're pretty And which TAs tenants no having much the is more component renewing by are are renewal as our high our we're at those evidenced that much part with capital because tenant other the little bit as into rate,

fourth midpoint, about of a call timing from and those rate million, that quarter the the $XX perspective, see the and timing based it the so in And we timing quarter, amount at goes reduced higher implies, overall completing. renewal our on the we'll projects how but fourth

Samir Khanal

I'm point 'XX? or stay levels levels sort this year that similar down expect you would sorry, next the at at seeing CapEx go we're to in of

Michael Bilerman

back expect the to We total to we as into of this we aggregate factor these CapEx year is next think were where that sort at our going is. got rate continue do what renewal will remain levels pre-COVID, big we

about, feet then rate, a numbers. be you we was but square our lower million leasing, higher at be renewal of look have As we'll bit of a X higher will the spreads, XX% our in Steve CapEx it If renewals. to little talked get able

of we'll outline those be we when sure in talk all components. So February, to

Operator

of from Our Craig Mailman Citi. with the line question next comes

Craig Mailman

also kind of run expense rate, recoveries. pointed had take of penny the you've you of to out Michael, better kind of of period but out the out

end And average what leasing have the about kind you is I of good next think think and of of we whether ratio done that where As understand what recoveries rate model? for [ year there's have as given the guidance, think of in recovery run year, should -- a guys you into a good but we you the how kind about you is we side XX% do seasonality kind annualized the recenty? on do ] think a

Michael Bilerman

Sure. Thanks, for the Craig, question.

think generally to our space, the are relatively our As point business recoveries renewing recoveries, in operating So variable. we expenses going is probably flattish, think right? we're are see about but highly I increasing as are operating expenses recoveries fixed, and the the our biggest

the is lower the and first in the rate half be recovery of jump to year year. higher, of the going around the quarter-to-quarter, so likely half back And in

everything our high And holiday were sales marketing important the coming As that highest to you we'd centers. low traffic. expect saw people make in XXs quarter fourth sure the a traffic obviously, this we happens. to lot be clean quarter, our low the the and XXs, our of highest secure and the quarter operating expenses. during got that's as in most of We the because that to XXs, level There's is season. It's we're probably which that spending driving of dollars

about the as color a we'll year as little have on average, As recovery it's going be next of bit the we probably we some fluctuate provide to guidance as to in -- go year. that we next more and move XXs, think into year, rate on sure we give seasonality through we a and

Okay.

Craig Mailman

then now And done. the helpful. That's spend is on mostly Nashville

that 'XX, about as any we there any back, You -- still Should these about some happens? and out-year should but space in you have ample point? NOI centers. sheet and we F&B plans disruption be splitting guys offline more have up retail boxes Or guys more at are of kind kind expect Is that talked thinking balance this of coming taking of and liquidity.

Michael Bilerman

initiatives those of land. our really leveraging peripheral lot a So are

re-leasing the retailers of centers we don't have at additional uses the something to generally IRR and multiyear actually we So nothing, from reverse, number transactions land doesn't those relative It's to take provides capital, intensify look right? have to have to continue a opportunity cost able to to but as centers. basis. deals an take do we to of underwrite a going we are peripheral land that. the ultimately space, basis that those us go a kind through to longer it's we're that opportunity to happen because and structure anything We a our relative opportunities, building have bring off-line that just And of to creating be the and

Craig Mailman

you to that acquisitions. last one loans this then you where to some focused commentary guys buy to in now? way? you try portfolios of is to on Are guys just this And kind of at outside equity deploy the again of one outlets rate on are open-air and to where for Kind mining of are back through just Are most hurdle waiting point? kind for going Steve's what of And bank into goes guys Okay. traditional kind for you guys open-air opportunities non-performing stress side, the you strips? really

Stephen Yalof

Look, we Craig, delivered the an or just Retailers our retailer want but give love Nashville They lot We've done in an be that do opportunity a I'd value. asset operator office. been great for great we're the you and and know a stores It's part great an took we on can center the in of is left add shopping that X feedback to we want that think company. probably to great us answer, you to leased, There ground mix, to job a as that the centers. we on out an example both see the question, go. X of organization the be job leasing, looking of XX.X% has community at above. and retailer and to go leasing from the partners as a all a of of we

can't to upside the have opportunity muscle open-air and you where to so be that value I geography now a tell We've find the mix we properties us entertainment that going we going from, right go going it's expanded that for going we opportunities after be food I and opportunities looking believe us, after as give that's principal expanded at look accretive. in that shopping our can we because after to portfolio. different that where uses. we're an we're add we So center think beverage, us all of we've certainly, tremendous have to to and come of opportunity muscle now. Look, tenant We've the sort to expanded the can -- retail for give

Operator

with comes the of Thomas KeyBanc question Markets. next Todd Capital line from Our

Todd Thomas

I guess. on questions Nashville, X So

know First, share you provide early read? since can about whether open also, yield towards X.X% any weeks open, X%. early yield of and and it's here the can NOI but sales? piece then early and on NOI of the any around read the some talk stabilized on you And there's the couple that's been sales at color of a tied the open expectation to to the I just trajectory any

Doug McDonald

Todd. It's Doug. Sure,

Sorry.

While of is we does to different still the components. around going a a the yield X%, momentum There's first we've year X.X% time. be sales believe stabilized build the few yield to mid-Xs. probably over maintained The in Xs,

come first expect new to to heavier be that also There's to marketing and market. rent piece X. understand when a continue everyone's impression the grow X variable in spend important. years to We great that We will a there's center. sure going need sure year center want is OpEx in they is in people X. The the make We to make

manage expect janitorial like the things we year way in a start forward. operate best those the security, as heavier pieces to to little could those landscaping, figure out So bit the going all and efficiencies we be X center

Leslie Swanson

all. Operating Todd, The we traffic remarkable sales the and momentum. volumes by Nashville that all Officer. after Throughout It's Chief news Nashville. about brand is very at retailers Swanson, opening couple weekend, done phenomenal continued good wanted make lull a not past the We a we to of opening did at a week had have with into grand Leslie comments. strong I weekend this

We're to to see performing the comes volumes top their it their Nashville. best future. excited have their in when sales class retailers are who in saying We

where We have have a new and and continue strong at schedule the to we'll holiday center. improvement shopping of traffic

the Nashville community. that offer to excited we're So to

Todd Thomas

sales shake conversations months anticipating productivity And might any where sort be several what or even there had Are out updates where any at you around that around might within out the have reforecast Okay. budgets out? tenants with shake sort or they around portfolio... all last settle of over updated of might and those the

Leslie Swanson

the For portfolio or for Nashville?

Todd Thomas

Nashville? For

Leslie Swanson

Yes. We every day. retailers our talk to

them remarkable we'll Our happening, what is on Justin work Stein, them hearing we're outlook personally volume about with with has met Again, volumes and Nashville. perspective in continue sales Leasing, a one-on-one. from ongoing Head of their to

Stephen Yalof

Todd, have one I thought.

there's that square some we shopping sales performance average square the per range. that per $XXX, sales as are curated So, performance, in retailers foot average in have the highest center, $XXX of that foot shopping in center the $XXX, center our

that So and in is the in plan about -- stores performance their what are sales Nashville... some sales we're optimistic optimistic outperforming of performed portfolio. other their those our highest pretty the sales what We're performance these

Todd Thomas

just last And just just broadly you I portfolio occupancy slightly. helpful. higher, Okay. about raise expense the continue the to and increased you mentioned the overall, thinking question, sales more circling ratio cost back guess, just and Nashville, That's just portfolio's And then recoveries drive to my tenant too. rents environment not

is do of So moderated it's that where sales think, at still of should point a thinking pressure quarters I about healthy. you're sales X.X%, a into we having? have a come as where which greater be now couple sort to tenant We've discussions And seen, OCRs pertains the what focus. little leasing being But bit. point it

Stephen Yalof

not opportunity year. OCR our only you as press think think that up got look We've growth. continue rents. some We there's I coming that to portfolio that there's yet touched been of next has to Well, at turn

to you renewed mind couple value. clearance there's last store as that distribution important they're It's to at keep adding look of point grow. of off-price look great what been the our is our bricks-and-mortar doing they're is and at as the they question, an a it an important the of doing renewal, different Lizzy's back goes of the what ever that in the increase. at again, think the You retailers renewals, where than they the in channel. part utility retailers, yet sales outlet XX% that this of utility their case spreads store is past, said historically XX% than And in to we've continues activity the rent in just of ecosystem, higher of and from store our quarters, view.I so XX%, another plus trailing utility something It from XX% it's moderating slightly to

continue the our all positive want turn flow. we We to utility they're here. is are its of in to at that retailers the although get day, us. saying to the the the is So goods. of over voting, that cash end stay lines, the sales, line to important the store top And ability store want We

Operator

Scotiabank. next line question Greg the McGinniss Our of comes from with

Greg McGinniss

Tanger. message quick a Just Steve for

ever You of means presence first an time were and ever analysts. earnings more the calls I've yourself from your instead Hopefully, stepping call, I sell-side asked just dealing actually enjoy question with on these appreciated back CEO to a the the to on since.

very you much. thank So

Steven Tanger

to well always chatting you and we Thank with you your came for meeting. comment. I appreciate you, enjoyed always the how prepared

you wish I lot a success. So of

Greg McGinniss

Steve. All right.

was other rents that to of that on the from the increase? occupancy The occupancy? much increased how outline XX of on Could you points questions increase. There's quarter here. base drivers X.X% of So to tenants just conversion quarter. some of And cash last basis quarter-over-quarter permanent

Michael Bilerman

Thanks, Greg.

as points. year-over-year So has that occupancy think permanent, flattish in XX temporary around remain percentage we been all Our right? growth about at growth, occupancies relatively the of

at our that that permanent activity in driving growth. X growth of rents, basis when totality, those what's on XXX revenue over of a combined lot combine our occupancy, you swept our of XX.X% can percentage base until average you points year-over-year look with and up spread the which it's XX% rent portfolio is that's also so on in minimum together, pieces being And

we're And ahead, go very so -- -- sorry.

Greg McGinniss

the Yes, Michael, quarter-over-quarter. this is

you're quarter, So X%. from up last

Michael Bilerman

Right.

that XX in point an had occupancy. sequentially, we of part is, increase basis So our

sequentially the We of up item. a collections as picked And dollars amount also release, line rent that rent few in about where continue to up thousand a have hundred we've small had we spreads. talked we in out-of-period

Greg McGinniss

something Maybe we bit later. can into Okay. a dig

NOI implies a it I slowdown QX. dramatic guidance, into think same-store pretty the On

the curious for Just slowdown? the is what that's there tougher or comps expectation just if

Michael Bilerman

Sure.

expenses talk our about, we variable. are As

you on from little the started to do able impact a a X% quarterly bit have midpoint feel that pleased where we to very On been our move an And same-center over X% up basis, of so year a of year-over-year we've X%. basis. we the X%, at to range annual

would annual performing. an There's quarter-to-quarter, impact going growing is and that on And year-over-year that's really basis. basis so always our still FFO on overall, business but point volatility some to is the I a out be the

Greg McGinniss

Okay.

you could represents also and signed spread about that could that standpoint? was amount base everyone what from talking these just the give you occupied -- On a it not rent days,

Michael Bilerman

Sure.

by Because those replaced. really the so Why? long is boxes used not be big to signed landlords. So open for box it takes

open going large always And this not have so they're to signed pipeline.

is X tenant the transactions. space XXX We X,XXX square over of is size averaged portfolio. portfolio Our feet a small square million The average feet.

way Our a And in tenant. that's signed space strategy permanent to we're we're the where not before sort we collecting higher a over to open We of pipeline no turn vacant is temp XX% being part rent and it is there's downtime our no -- deals it. with The producing. centers they're the tenants CapEx. us paying in rents already using stay our there's renewals, that of

that's not talked open come. rather it's for before basis on points, points not material signed signed XX think I and a a XX we've seeing than we're -- that So basis open where consistent NOI amount basis growth not just the to waiting of

Greg McGinniss

Right. Fair Final question. point.

the stable XX% idea so about quarter to increase think in that have and converted with converting So talked tenancy year, it's around we or associated has that how last how happening. the how permanent been being tenancy you But much tenants to those XX number about curious some -- or number. that's around maybe last the temp XX% of over rent frequently just

Stephen Yalof

lease happening frequency. can have with with you the deal The deal cheapest estate Well, first of a all, real is tenants temp great the spreads. because you temp make

space to the days' have We and XX control ability we to have ability move on the notice. the

rent increase to storefronts Xx to you'd that wants temp occupancy, I'm then make which happen got expand space, your if somebody some in for that center new will sitting what continue space great I've occupancy. maybe to a I'll have the I either you, a going that of and shopping right wants another to temp So Xx. or couple move tenants, a And it's another say tenants has to the that I'll the go deal. next like to into. retailer to that's

them I'm desirable and less my occupancy retail there. space, temp putting of the throwing temporary end shopping building to a level center. permanent, by adding I'm the them but of at day, I'm So not but the that I'm allowing taking I'm out stay them that just because maintaining also

Operator

line comes Goldman with Burrows Caitlin Sachs. of question the from next Our

Caitlin Burrows

could even they everyone. those Hi, be broadly to was I and they And of kind about the like may what they there that the a kind centers. as wondering are to or for are interested talk as tenants extent them then? additional of you Nashville just concept for way new take who in Or well more expand is who if is new that at opening difficult can established overall, outlet something a longer to is more bit to little establish? that somebody that's an

Stephen Yalof

sure. Well,

with start So Ulta. let's

see with alongside weekends, which Club. its They're complement retailer their Nashville that XX category. that of. base is customer in is in product that the and to has like Prince's Boutique, is want first Chicken, because their that we great Now the positioning Ulta this a sit they not get is now traffic will the to virtue We've to which business. traffic of a Ray XXX-acre of.Others and but is shopping and South, parcel not mega Hollie that retailer Woods' new they in Tiger have by a on great -- of outlet great the store are got who -- staple Nashville chosen us beverage to to that brand large in who's to there's Hot our go with shopping retailer, share A the one to large store this they that center location grow from also one let's Others because PopStroke the business. a to weekday that on us to get Soccer they that take format shopper to they're outlet chose in Nashville -- new tenants food discovered front is local center we'll outlet and new the brand starting a put decided come the that's

there's been as to So to in of center. number a our particularly that part of go area different that start retailers, this out and shopping had diversify pitch particular with great draws we

Caitlin Burrows

Got it.

quarter, up following maybe modeling sequential just of is. earlier, rents $X not, occupancy if showed million larger base was then converting [ yes, might there. Actually, it wondering million. And that? way, than you one you $XX.X asked it's than increase in percent is $XX.X rent to But the then ]. one-time base And questions million in the another sorry, anything the And more just be there it guys rate. mentioned in Okay. give or It tenants on just the I'll over if that's minimum just number that just Michael, so expected, exact like the way the seems just else of the part rents. from

Michael Bilerman

is part it not up Yes. mean a significant of that's the larger of amount that something levers minimum all than number I we're The into It's effectively has. grown would our pulling that but rents. have that out-of-period base that of not it, year-over-year. significance

where base main occupancy, all line. And rents. to we the translating our increasing growing rent that of forth fix and All to been putting that's that into our rents percentage we've converting variable spreads, rent initiatives our of of fixed prefer have rents

Operator

of question next Mike comes JPMorgan. Mueller with Our from line the

Michael Mueller

on high after going be going So it's of in it the rest spend. to Nashville cash to XXXs hand, back like looks the the

a other there that normal spend? on is and And of proceeds any potential currently opportunities evaluating? so pipeline than near-term acquisitions acquisition other you're And of that point, near-term there use CapEx is

Michael Bilerman

and leverage Thanks, that's but it's market cash at say this that we've the things optionality maintaining Mike. level. below not spend, the the on only balance a of lot we're sheet I'd been our hand, average what Nashville in the projects. looking of outside And

be we having combined with hit combination about, and excited park. try able into us being well, low transactions. so opportunity the we million that take leverage so then swing accretively $XXX an are the to to to very Xx that We out think in And positions it that the see deploy and the when of we'll

Michael Mueller

it. Got

one. then And one quick Okay.

think leasing portion adjust On leases of to that won't I year. proportion? Is that, you expiring the renew because of there mix? a percent, percentage the want for XX-some sit of it's you next a rough there that what's just and And the front, proactively XX%

Stephen Yalof

on be will is, us because proportion definitely big rents but too that shopping some who the to occupancy, want in have our high center the either proactively can in higher and there's with command give we to what an that locations to locations. and half diversify manage they're know the over don't in sitting choose the in they what portfolio I we XXs opportunity the strategic the put the Yes. portfolio or renewed won't opportunity asset center shopping

Operator

line the Advisors. Arft Emily next Green comes of Our Street from with question

Emily Arft

I wanted allowances. to touch on tenant

per foot $XX So foot. looks number like $XX about to jumped from square square it the per

what's higher? do would you number theme that buying see describe on going where to of So you drive settling? able number And the that be kind to

Michael Bilerman

-- on get which about Sure. Emily, make is XX% leasing we lot a minimal those we're renewals, where sense achieving square right? our basis an having high of years from X When where feet we economic duration, talk that activity of CapEx, it's leases, spreads. deals our XXX,XXX

long-duration CapEx when X% And X would the through totality, pretty about it's getting, years. of I on total you the activity. rent small so average it's this is our just what amount relative deals And that duration a these came increased but factor leases of importantly, the that And to adding a aggregate and the they're quarter are overall. add in we're the rent take leasing

Emily Arft

in the XX And fall the remarks, I'm from third in tenants that your tenant within top single tenant Great. or but a several I sorry missed fee and collected then list? quarter, tenants if this the terms opening is do the

Michael Bilerman

of to of There were bankruptcy bankruptcy related in from distributions -- through current was line. that's to tenants. any actually to minimal claim It Emily, had most that's very some terms related COVID that that era. flow

Operator

McGinniss is Greg question from of a the line Scotiabank. next follow-up Our with

Greg McGinniss

Just equity magnitude additional spent with a you the details was accretive to fund? there or an Could money potential more equity to any you on investment. might and issuances that investment of whether investments the provide good issuance, opportunity that on for mentioned that be regards

Michael Bilerman

and as fungible if mean, almost sheet a that I equity we've all cost possible. given million the to our our being things whether in we line that bottom felt at and look much we accretive raise to at the there's our as investments little and optionality bit Greg. been looking we portfolio, at, of $XX ultimately making outparcels Thanks, is our to sources $X.X capital of of and in trying always capital, are maintain of uses balance would able be

and just conscious was the money of that -- accretive we And cost where were we're ensure and how we're that it was for to deploying so stakeholders. our

Greg McGinniss

Okay.

how if expected this sorry covered development? under but And currently was many those? outparcels are on before, And what's the outlay

Michael Bilerman

-- guided what the the cash or what outlay. haven't We to

Stephen Yalof

that that old. have Yes, I centers the that XX, XX, estate we of if for number that shopping most have we we've real controlled primarily like some time don't know All the are are handy. can is as I outparcels say owned XX years opened we've

as at is typically and demand as the well, teens in double return. the say -- high would an a relative we So far hot extremely teens, digits, will low basis rents is I that our collect investment the to

but So we to make the returns an individual basis, very decisions deal significant. forward are on the move

Operator

concludes and We you. thank this thus today. concludes participation. question-and-answer And for Ladies our your you session. our gentlemen, interest Thank call and

lines. may You disconnect your now

Tanger (SKT) 7 Nov 232023 Q3 Earnings call transcript