SKT - Earnings call 4 2023

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Ashley Curtis

Good morning. I'm Ashley Curtis, Assistant Vice President of Investor Relations, and I would like to welcome you to Tanger Inc.'s Fourth 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.tanger.com. Please note that this call may contain 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.

will Regulation non-GAAP G. we defined measures call, SEC by the also financial discuss as During our in Reconciliations most being time financial in in directly these recorded comparable release of non-GAAP a GAAP measures measures for rebroadcast the are period call future. supplemental information. This our to for the earnings is and of included

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

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

Stephen Yalof

report NOI and realized and morning. the X.X% quarter was velocity year you, positive strong pleased a our expectations. leasing same-center to We quarter rent driven for X.X% was closed the Tanger. This by Thank the grew I'm that record growth, another year, out spreads. which milestone for ahead for of and organic good robust Ashley,

that earnings of centers and markets are platforms. from our growth strategy quarter, delivered new year. long-term X.X% benefit per leasing, in in from was share, and with open-air These consistent and North the Tanger's ahead ahead Carolina, our portfolio. initiatives, Huntsville, to of centers retail Asheville, assets operating immediately Alabama. and of with our investing of which outsized FFO Tennessee, We can dominant marketing tourism benefit core fourth residential external on we $X.XX X executed In growth last expectations adding Nashville, In

the open offers green, of retailer development fast-growing and city nearly the customers the to experience unique a center to dining customer for XXX,XXX X open-air in diversifying Tanger enhancing square Nashville, commitment with in Nashville Tanger's response shopping complemented X/X center's portfolio our new channel. dynamic buildings, community our assortment of by Nashville, new first Tanger This and October. strong across shopping to space. outlet to retail Outlets foot place-making and the the Tennessee, our reflects or

and acquired Carolina, home in leading and The include market. we center's a as currently brands dynamic Outlets occupied our XXX,XXX that growing of providers shopping North at the The Asheville, November, of quartile Tanger diverse square Asheville, mix center acquisition a as accessory center in open-air the sales footwear tourism-driven well put this apparel, portfolio. iconic foot In is furnishings this property a by of time bottom brands.

believe the as market's greatly However, of great is over opportunity time. investments, we there upside Tanger impact combined infrastructure the and leasing marketing, with and operations branding, will benefit our Asheville growth from

that larger lease stores, in uses, and Open-Air and and center of the markets as just Center Tanger elevated shopping occupancy In restaurants to the venues comprises we square center brand late the platform. Center, Bridge is retail leveraging below believe country. destination an XXX,XXX market have mixed-use The merchandise dominant brands Street November, foot Huntsville, and entertainment the serves XX%, the and Town fastest-growing in which in over part Alabama, Lifestyle of development a XX acquired we is one the traffic-generating opportunity we with the with

all occupancy maintained new We leasing of we mix and as our and our reflect to quarters both demand the our tenant We've value backfilled vacant of successfully positive tenants. remains across we categories. grew our continue retailers. high positive strong consecutive spaces see properties activity from Leasing spreads Eight business. and as across trends the existing with elevated portfolio

XX.X% record acquisitions overall visits, points by quarter, and Tanger shopping the vibrancy Center compared and to the longer was driving at of renewals. centers leases contribute last feet, to to bigger Our in XXXX spends XX% basis which diverse productivity. totaling the XX.X% Blended of on basis this the mix rates We for was more million driven spreads year retenanted rent XX occupancy XXXX. XXX our We continues down greater of Occupancy strong with was adding Town square to points XXX XX.X%, while shopper and X.X and executed while versus diversifying Street a Asheville over enhancing times leasing dwell experience. is year-end year-over-year Year-end tenancy Bridge XX.X% XXXX. rental driving than were elevating and space average our fourth up on tenant and quarter. accomplished X% spreads.

allows brands we while utility productive believe optimizing demand brand In and more than strong sustainable the connection, asset while our to and growth we impact value and select user. long-term our near-term amenities, experience elevate to growth renewal overall we creating this tenant our tenant center may this a will but stores mix entertainment and metrics quality shopper strategic manage proactive Our restaurants rent is enhancing adding and continue our asset retenant the management existing XXXX, drive profile. user to centers. proactively rather our have elevation occupancy will of This centers, continue high tenant on we the renew aim to the the drive In with an important center us to with focus be revenue and while value assets and on additional and configurations.

we comps year-over-year. to value strong for activity traffic to and were a with during and promotional and sales positive, quarter continuing Retailers consumers the retail offers. holiday shoppers positively culminating create trend December realized the employed season responded of these improvement

more gains, discretionary family and apparel challenged. While athletic, continued were categories athleisure saw

are optimistic into growth continue are that sales XXXX. We and traffic will recent trend and by this encouraged the

for by efficiently launched XXXX personalize important experience. Usage important be we information shopping us shopping in and us continues to about and an provide helps the drive improve are target our more marketing digital app us. Tanger with to offers shoppers The and initiative the continues to grow, ability loyalty that our program's visits additional encouraged that

by -- collaboration in driven proactive with growth management, priorities As through traffic further and asset we measurable our digital communications tenants, remain and strategic organic relevant shopper deliver XXXX and and maximize intensify offers activation leasing compelling development opportunities the engagement Tanger and consistent continue through outparcel our our other and the and additional unlocking sheet. acquisition centers, and estate strength selectively over of revenue balance open additional leveraging platform time, of pursuing air including the real

proud of are our We and for shareholders we've the value generated tenants.

as within embedded and pursue our track value Our to growth. selectively commitment our positive opportunities results to in record delivering existing and of portfolio ability remain maximizing tenant underscores We steadfast external our relationships customers like to their sincere unlock as strong fostering support. our and my I'd over turn investors. offer unmatched shareholders I'd for appreciation call our our for Michael. returns to team like continued to to to now our well the

Michael Bilerman

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

ahead to quarter core $X.XX of share results came FFO a with the fourth fourth Our prior of in a quarter year. share in expectations compared the of $X.XX

core in $X.XX, year, the For year. FFO $X.XX was and the versus prior

the recoveries, contributions and higher higher in benefits driven out-of-period as a rents NOI growth and recent occupancy expense income quarter higher X.X% external the and from our core guidance growth our winter. rent strong versus upside the base of the minor spreads efficiencies result well continued X.X% as and by increased with for year, Same-center for was activity. of milder and gains operating The

hand, deployed Our million more the balance In accretive our transactions management on fourth liquidity during of available almost sheet invested X shares on was cash proactive and deployment. our and investment $XXX million which total, supported under $XXX on focus capital liquidity We our we these common ATM centers program. issued quarter. funded than new through

of share, average gross of generating During sold a we per $XX.X quarter, shares the at $XX.XX million fourth common million. X.X proceeds weighted price

credit. initiatives the Post capital with our internal positioned XXXX rate we and and pro and and $X.X million and of ample billion support our net late cash maturities unsecured had lines fixed remains of largely dividends. end external on markets balance rata At free of activities, availability until low year, after sheet, the balance of debt leverage to debt our $XXX our transactions minimal sheet well flow the growth

adjusted the those Pro XX. for estimate lowest growth that months X.Xx, that this one EBITDA the XX external net from spending retail assets. and fourth at rata year a from pro a the the would was forma still December earnings the for X.Xx of to EBITDA centers, quarter of year sequential reflects in new the and sectors. ratio deployed in in X.Xx of Our full was increase ended The be ratio between benefit of our debt without full we share commensurate X the REIT leverage

million $XXX X% in These XXXX, X.X effectively $X.X to including starting another prior fixed late million February rate, our date hedges, XXXX. X.X%. And of so of our In $XXX had terms significant debt over SOFR years we we last through or and this billion we've $XXX weighted swaps X, on XXXX, prior base adjusted of compared swaps $XX average commenced new million of forward at the of that Since rate rate our call, rate new our added a swaps the the interest expired. and in of million debt the is debt average. XX% varying maturities of new maturities January fixed swaps of have swaps this no for aggregate, fixed have on until activity, of

to a continued our low well ratio, remains support free dividend cash flow growth. quarterly with payout Our cash covered providing

turning our XXXX. to Now guidance for

share XXXX, We X% swaps. FFO rates activity which to contribution up offset reflected the range in $X.XX external and X% moderately of organic is by per the the over to expect we the higher completed growth XXXX, interest core in that from growth of expiring $X.XX, continued

X% the benefits the in expect discussed to of be the that leasing in to which NOI short-term We downtime. from Steve date retenanting which to some X%, could the activity result and strong of proactive range impact same-center

to a retenanting CapEx and investment reflecting in recurring portfolio. XXXX million the $XX of the $XX expect in million, our rate continued in We range higher

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

upcoming later as of this analyst are we looking investor forward events March. well finally, at month as seeing to and And many greatly you into

[indiscernible]. Citi's Wolfe management Ryman as tour of our XX Estate Florida on Nashville Outlets in and development, February Research's participating Conference March REIT from MAA, March Real on XX, with to multi-property part Xth, Tanger are CEO Nashville together ICR's We and X a newest Property in tour Virtual at Global Highwoods, the Conference discussion

with New be on headquarters we'll touring REIT National March York Outlets we'll be Retour multi-property XX. participating Harbor in Tanger City March XX, connection in and ISI's tour addition, on Evercore In DC retail BofA's

firms questions. Please like the to any for respective call up to join these to events. open reach the like at us and Operator? of out meet with if I'd you'd now

Operator

Instructions] [Operator

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

Elizabeth Yang Doykan

should operational what recent last weather to cost with in associated looking spend marketing to in year. mean, growth items when up bit environment But on some more line we just then kind the and Like, considerate expense is -- color experienced a acquisitions of was just be same-store things certain 'XX? then the for costs better I of for hear love of get obviously, like guide. general would NOI modeling there embedded the ramping what's or more. your terms I

Michael Bilerman

Thanks Lizzy. Sure. the for question,

'XX of a impacting some that 'XX. things So things are couple happen in

about the talking there had a snowing. been about year from not our -- the snow normal in X-year a average. this we from assumes we've during forecast was to as savings XXXX, relative milder to of winter, this And $X certainly year, year relative year, 'XX million So

seen mitigate are headwind as just to it, So you've year-over-year, in as higher. possible. call as continue trying uncontrollable some you $X items do insurance, got what an our that as flat by a over taxes point which that is and as XX in organization, which OpEx. or, expense to like to And operate relatively There about growth go trying to the then was much OpEx, trying are basis of of efficiently we million

And expense X% range to X% obviously X% level it it, nets to profile. so but same-center have growth to our that growth all X% of in does same-center some down

Elizabeth Yang Doykan

sort of you're you could given to and have opportunities of comments seeing centers. question about Do hands acquisitions selectively on -- kind of a you today, some what centers of you're on the follow-up kind be and the on full your Lifestyle maybe of to needed is target perhaps outlet opportunities? criteria Maybe capture you recent kind there the of talk a think other acquisition pursuing your might Open-Air earlier deals seeming closed like seeing that Centers. As to development number on for more such of

Stephen Yalof

XXXX. first to were as all, Well, we're of be going opportunistic we in

the the developed assets classes We find outlet full-price Open-Air obviously, Open-Air between well fortunate number are at to two very the one. asset Lifestyle active as we space, and in as looking of were centers. a different and We

capacity. plenty sheet gives us balance Our of

position obviously, be should we forward in something to if opportunistically So in a move we'll on find acquisition. that XXXX,

number a like we're for touristic serve the criteria are have not and best-in-class looking this that point to -- where marketplaces play year, growth us at great in to that anything an from a much last leasing, things looking centers that that growth, we've be center executed. are looking There and unfortunately, and marketing we're residential they dominant speak of is opportunity were our platform, which the to operations. really currently until great of plug and But we're view, ready about we time for

as Asheville platform. showing bring a been a bring Bridge we So forward lot into able to to them we've do with both our and center. We're to Street we looking shopping

Operator

line Dijkum the Floris from of is Point. question next with Compass Our

Floris Gerbrand van Dijkum

I obviously, were tenant guess, sales a My first down is bit. question, little

leasing to tenant new can this expect? Obviously, also the end the a what or great, sort as alluded strategy that little your talk But do bit of mostly is centers. leasing that higher. in your a more talk densely you productivity are new average You across that If can your come into uses will we would centers? and maybe these would be to then little what terms your concentrated potentially strategy, be populated well? of sales this portfolio? And about bit higher the would Steve. And in costs Or

Stephen Yalof

Sure. Sure.

a retailers was will we this for we've also with the and strategy, strategy, our alternative but to years. what X versa. great shopping centers Shake and gives new And really in past it's our lesser We're productive we done to got core commercial we think shopping new retailers, We're has to XXXX. digging leasing in been stay our to and Shake stay vice where looking we've seeking or replace far executing the centers for addition to it it's more productive They'll say job. few more Shack round think for all, a the we'd Shack. because come a of for leasing customers to for us Shack more to base, come centers really it like vibrancy customers. customer a First X Shake constantly of deeper our the for assortments uses and Shack shopping good Shake or yes, feel out

really bringing and like category, wellness we for of in into to trips outlet health marquee great a category, for they're a which in pushed us, lot these they a than category home So that centers, our year. we're of diversity typically feel have and the names more whether center created an make new to the customers come a furnishings would lot expanding and given and beauty is

we've with so that's That in price retailers Huntsville also retailers are of been a us. base made and in haven't same in outlet. price for sense working other customer that that full price Open-Air the full that there's our the has discovered that lot number A for strategy, years why have acquisition much of space representation full outlet space. Similarly, in platform yet also that

proliferating more of And now a a lot so acquisition to us chance connectivity haven't retailers entire but strategic are and probably from our to to that and into gives before them bring portfolio. spoken that forward our had space, to view, also have either looking a access we've point to throughout

Floris Gerbrand van Dijkum

that equity And potentially if look obviously, mean would many you have your in that how like are you exciting Beach, is -- stake. there an I up follow don't maybe, of I ones asset could more out your on is like potentially Palm to one ownership Beach? but you any there And increase equity list other a things that? of the Palm would opportunities of

Stephen Yalof

wonderful is Palm Well, we a that asset us. Beach a And Tanger It's Palm asset unique call like for to Outlets asset. Beach.

relationship displayed. obviously, Yes, We're driving you're equity gain when us is perhaps that XX, it with prospects. over very those to have about up prominently the excited we owner the time. So and allows down

we the Though assets EBITDA on raise like I changing better that. -- beverage we're the foundation. center. We're a rest market center and base. that? entrepreneurial adding We number things shopping be much shopping use with think profile, that slightly food Are retailers like pursue assets. fact to and that like we've for that strategic the that there aware grow building other it's continue the the to how willing great that of and our portfolio, of and is that leasing of additional the nimble, we're added And

when us creative us would we a deal to and something number And equity similar there's that rings, a the phone that's talk structures time, about deal for a an that consider. Beach these of over make lot. we opportunity Palm to Our gives

Operator

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

Samir Khanal

Steve, been questions I sort for around or There's troubled right? of So in you're guidance? assuming a guess debt bad us your understand Michael tenants, on what help same-store maybe here. lot of

Unknown Executive

Samir. Thanks,

surprise reasonably to through effective are So work generally, our to towards way we're guidance tenants. ends at level it And hit in XXXX, it's X% going the the protected if of our and X% us, We and [ look of within and constantly under range When basis things year. the that's have in was of to that news, we discussions ] effectively to debt. about points you different a feel we XX esque with not during manage something that similar range. be bad reserve because we a

Samir Khanal

cost occupancy but it is level X.X%. growth. second that mean, flat I around and is good up. X moving the a When to been it's question is then -- you sales, at still over look your my I sales be, And Okay. years guess last it's

let's continues sales slightly cost and your What's long-term. at is occupancy or to time? to ability flat the what say, sort So rents above of that XX% be down, happens over if push

Michael Bilerman

look, is X X, spreads mean, think job we've X that for X and growing really Well, priorities this that. really and consecutive to that I rent done rents to -- is And of a positive pretty I on we of executing that quarters organization. continue build impressive

The done a year was slowed for velocity It banner year. that is Last year hasn't leasing leasing given was we've other our the down. in any most us. thing

continue temp space productive see to now. it's tenants, of as the permanent downtime, of renewal new about at that a our now of about tenants. that to XX% tenants I Last temp also our that also putting see mean we we've retailers we're with are we've and with talked vacancy. more the space the We and retailers that that -- come where far great. have chair tenant so lot have activity. the -- renewed. right good done opportunity There's did a are rents. fill than taking we in thinking some of to of their base year, job space permanent vacant real perm replacing prior existing an with But a acquisitions We but in we We've XX% temp spread also about renewed to no

the be that's willing and leasing team more executing able shopping hasn't But into time. going now to and down better on more to most our replace strategic elect little to us grow that. with the retailers that velocity more are point bit to and laser-focused think help important those sales-producing that's our sales we might our slowed And of in over to to We've rent they're tenants the is we ours higher of new renew, a to been our uses, paying, showing drive retailers. that focus productive, is leasing and rent XXX% centers, But choose centers. may pay new a tenancy be we're going some to

Operator

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

Todd Thomas

you compared was 'XX, higher ahead in on and some the you cause to drag of spreads from 'XX? you question anticipate renewal and and we same-store year that? disruption. could discussed then the to Do the guidance spreads And same-store? spreads that which to about in the should First the on that activity How XX% XX% much anticipate lease just X% retenanting relative renewals new think X% retenanting how 'XX

Michael Bilerman

Thanks, Todd.

And So the are as the X retention we activity in from think of we upwards scenarios and portfolio but a rent bit in the different the where that tenant where our have we ends our to maybe getting 'XX, Steve re-leased guide is of XX% depending were more to and the our and higher about therefore, of that higher downtime, earning contemplates about, higher in renewal but as there happens same-center rents, X or in tenant [ range not we've side. of renewal high what range, of which talked therefore, if 'XX then be. different terms have embedded into leasing on little terms of translates XX% of rate will downtime, on a both strategies less a ]

this perspective, So downtime, there's within but a of it. at from a talked modest there from and as is of lot takes, a that, some downtime definitely some that intent in mitigate we're on range drag not and is strategy, of necessarily with the in conference headwind. They're both about XX% would puts but downtime last that's number try associated temp We tenants, certainly that a a of but with the this to to our be of call there's coming year. and numbers much the our going also CapEx it

Todd Thomas

Okay.

which maybe have in implications So drag higher activity 'XX we more with same-store ahead versa, result resulting higher spreads, this lower think end would up in higher vice year renewals as retenanting and higher combined to spreads? lease retenanting the leasing positive would

Michael Bilerman

at and was plan took of renewal built year XX% We outsized What guide NOI more year probably to last in into that to with will XX% where a years that's rate line spreads. consideration guide is previous we renewals SS do we've an growth to XX%. leasing

quick we drag. and those and productive pretty productive. lesser keep downtime. So be of much front with we minimizing SS keeping good TI from you. as plan filled in our of our to I make team to mission the There'll purpose this is a at shared a facilitate But is spaces lines more on sole to guidance whose We're best lot that think mentioned transition ability downtime occupied is very got that's the to retailer. with NOI as great there'll sure some retailer the that can. a a that indicator be We've Michael replace we

Todd Thomas

then my around question And Okay. other was investments.

Street, that future cash were think sitting quarter, and for and Bridge Asheville lot funding sheet for your the $XXX of balance You does cost which company's on without how over last the of blended deployed a cash returns quarter. helped having debt required to fourth that now on today, previously With and the of how million you the change about cash given deploy? acquisitions investments completed equity in cost that just

Stephen Yalof

Sure. in in credit has in did of meaningfully. we interest come What's transactions reduction and interesting, when debt the the Todd, rates, spreads is decline with those cost from the

come and we've re-bonds, last trading substantially. in year, where pretty about think we're You

our well of we're time. So conscious our debt as cost equity, of over of as cost improved have both

are very to both those and prudent it at. we in And and that to everything strategic that provide to this financial make in We disciplines want any asset sure look to bring we portfolio be ultimately of. are be is want X disciplined mindful We going nature we on accretion. that

X.Xx of were to X% and other where flow. $XX to today. where we've G&A flow growth company this you the provided -- of free where X% And generated guidance that, X%. of is part a then at from X% to little EBITDA same-center load a we XXXX, our balance our acquisitions perspective, this is. to today, that's sheet cash the X.Xx ahead for But million And look pro free cash are bit given of stands back forma

make cash combination X% to which solid free the going bottom of basis. drop to low and provide a so and X% this a that's And increasing to on flow go out and year continuing line capacity would growth, payout provide the to the FFO us EBITDA have acquisitions to ratio, us

so pride to be sheet balance those really and have of And opportunities. able take we be the stands where in opportunity to the to execute mindful

Operator

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

Craig Mailman

spend want on outlet follow-up Steve, give Just don't on guidance some maybe And color a another the underwriting, also, the additional outparcel the looked you like within of what took mix have you appreciate identified it that? to $XX whether and investment I it's December. lifestyle earmarked of here, centers? portfolio I noticed guys for in more the million you but versus on you're have ATM, then sort an any redevelopment question. or

about opportunistic? or whether So be if to what cash near-term that's of that's used is maybe for, just talk sort going just that

Stephen Yalof

beverage and we've understanding opportunity and the Craig. outlet Thanks answer a for to the reasons question, don't, of a And activity. in front looking retailers Lifestyle of we're you a and that divulge of you I'll at. company. we prior then ATM outlet to might about not and in Michael I that the think in for my lot That just for outparcel. synergies in is that of of X been We an entertainment amount see Obviously, centers going certain we that it said, the the we're immediately markets I number things things us over the talk tremendous for last give in us food appreciate value little advantage a there's that about we take doing our there. to others adjacent out might we're half the to our where and I'll why But we're shared turn of the which sort looking at. talking It's feel marketplace a do think competitive bit years. Open-Air now to

we've And land we outright. own have We XXX% just focused that monetizing that's that. excess a of lot unmonetized a got team on

on were open we ] to couple a come, to customers couple we've very, of Texas And very Arizona get Roadhouse to and adding able Savannah like center year, delivered to when highly beverage brought up Buster's they're this food And as we'll We there. last under a year, facilities shopping to things [ & spend outparcels and other they're again, stay to we new in Dave that in just only of light productive more more say, construction currently. a longer. possession

of our portfolio. definitely we're narrative it into feeds So doing the what across

of do Those monetize. require capital other deals little us, very very end. a lot We our have land good on are deals actually for

leasers, not and we the out [indiscernible] there's for opportunity like fully us enjoy are are of rent think to We that headroom monetized, so that lot sellers with -- comes there. a we we

As of Michael ask to sort far piece. that as ATM, I'll take

Michael Bilerman

that, towards ATM a about it feel thanks, leverage growth external activity, and free Steve, we internal our range and $XX.X to of we assets. flow which announced cash activity the yield The us question. low end to $XX be even just EBITDA and the Huntsville, to commensurate where growth the at allow to at and was did of the level optionality at million position that that We Craig, to sheet was year last back effectively X.Xx invested post really equity fund able in before to raised start is Thanks, our was to for we balance where our we when that, announced X.Xx. million

which on come full prudent, And it our to this to amount, us thought access feel and line with year credit, we we availability so provides appropriate it was of us it capital. to now was an allowed

Craig Mailman

less run you in other a would color which $XX $X second the services other balances. Or you of would of different? kind just color that be if the expense just exhausted related. to a expect meaningfully But guys Great. wondering income you could like million, on be $X in any then drop million perspective million cash kind interest just have revenues, in And on leasing and put guidance I you've you seems income give great. given more other that about of which to question, any contributed and 'XX rate there be almost 'XX what management know from

Doug McDonald

next quarter, lumpy Sure, is the grow the about the outlets. to be to But fees property. impact last a we're growth of This the through that Craig. adjacent Place the in to 'XX. joint Beach Palm be That last We rate and Beach door Tanger in year number, Beach full Palm through center in times strip we'll Tanger there Otherwise, substantial due to would was on that ventures activities any year owned can to earn otherwise, we only Doug. Palm leasing fees. item. the at taking shouldn't continue It But management assets continue of run be midyear additional line our then talked the addition variety providing.

Craig Mailman

Okay.

So it slightly should flattish be -- higher.

Doug McDonald

what was Greg? that, Sorry,

Craig Mailman

say should amount the be flattish to going year-over-year to higher. was kind of slightly I

think million, $XX a Is it? million your about fair way $XX there So to range.

Doug McDonald

Yes.

team The along interest partnerships marketing primarily other The [ some all the including pieces. But the thought fees. is of progress $X a activity initiatives, the the great leasing small question on business management rest the to line So see all you're to initiative. I you're those item with interest million marketing pieces. and charging, revenue EV the opportunities. that of revenues, item, the the that and But some we on the other is we income, talking job. our $X income, ancillary continued will line TRS partnerships, there was about ] doing see of sustainability of right, miscellaneous and on continue

sustainability initiatives continue Our drive to revenue.

Some year. of last came that online

full a So that some priority in 'XX. various for revenue see line you'll high see is line continue item in us, from and that's to growth items. we'll strategically think We those year that impact

Craig Mailman

Okay. right. All

higher are little bit. those of going kind net-net, a So

Operator

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

Caitlin Burrows

during just increased Maybe 'XX. now, at then more guys starting whether Could with remain occupancy. the you importantly, tenancy confirm tenants but XX% permanent

why for your occupancy the may what are or near- in increases to in what's permanent may in of increase So to medium-term? consider maybe some outlook not pieces And it the 'XX?

Michael Bilerman

Thanks, Caitlin.

Occupancy to continues XX%, Asheville, to last occupancy. of average which below were of growth was which basis a came points year, about XX.X%, and flat aggregate XXX that the includes temp which up in acquisitions Huntsville basis, our and permanent occupancy our about relatively all portfolio. it be So at was XX% was increasing On over portfolio. same-center from of

where amount says, space tenant about talking of I overall. to calls then as start to going we're going we're lot on been our foot, overall to a try we been vacant point a love can So Steve long in as the one And has that reduce what get to temp. square there's always that things a the to drive continue occupancy to of we've

swapping about this for happen which we a As lot is remerchandising XXXX, think retenanting, in and what's perm to going about perm. out we've talked

sales our where which increase NOI. and expectation users, users continue we ultimately growth, course them within over range of replacement our our most will higher the and year some So with our drive drive embedded to replacing lower we'll rents productive the overall, but the of guidance is our is drive permanent important productive thing the

Caitlin Burrows

it. Got

rents. follow-up the then maybe to from uncollectible a Okay. earlier And question a just on

something You November in I'm could which it's February. up now good. say, news come not is maybe quite fully that's normally new the when news, -- in to guessing something or that 'XX, appreciated August you, mentioned been that maybe how in is But

unknown So up? XX like maybe assumption rent to buffer what debt is basis bad events roughly extent reserve the points a coming of for include

Unknown Executive

low So high these of a within and an has one every and a our range, items got average.

over And We that to been we're spot different do monthly And we unique lot environment. where get handle we've the able in sales difficulty so our a variables. retailer time, of a there's in tenants. from feel

so some to always try with we're and they to tenants other in problems the constant them to if we're understanding work to have out get side. communication And our

It's away completely been haven't had we fortunate go Chapter companies in X. that

we're our amount feel a that's protection to of mindful so X% in environment, that that. reasonable X% And and is embedded -- of around we current the

Operator

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

Greg McGinniss

in a you As the look those When backfill one to rent? month-to-month how a follow-up quickly new can tenant on you these space and paying quick tenants. leases, get temp of

Stephen Yalof

tenant lot It temp is. really encompasses throughout on our the types the -- a depends center. it's really on depends It different of portfolio. of Look, that user leasing who

short-term we and tenancy call because we it really a new retail. Sometimes of use we try lot

barriers to Therefore, XX the all, inventory they be lot the excess commitment. business. worth before to outlet years' don't have entry a that a and of make necessarily in they of lot retailers try First center it of to to in be business there's want it's sell. want long-term a the of product to

So give to use folks embedded opportunity is a it to handle still in give temp try. pop-up we've we which created an strategy, that a that

which stores tenant wanted and they stores department you'll that resource a in that see get to sporting they excess goods is of decided gear Huk was Huk, a the -- product. a fishing such excess to lot had They that had stores. wanted it One sell -- portfolio, they They to for now Beach our a our we story. that's did they've got part success. great And and use pop to across Rehoboth a short-term in one in out leasing. be shopping up turned try. centers a permanent That's how temp of of

the it fill space just retailers leases the local we're long-term brand. warm have Other keep or space searching executed a but tenant isn't just possession delivery of ready take X to perhaps for a to may while leased that a we yet. with major retailer We've

they such delivery who their announced all haven't short-term opportunity send of are also the a within the retailers we exists. XX-day offer a with right those spaces, to different opportunity We landlord, we one center in but where behalf them if each of an comes are notice, of termination shopping on of short-term ready them of yet. those There leases tenants are those take possession,

that old it's vibrancy. flowing fluid spaces to this So we've on. keeps one adage, I years. one it's a business, maintains hate using retail very that use cash for been It's lights keeps great and it

retailer customers open store. but difference store and between knows difference like the short-term our a But don't the and everybody a full-time an feel between retailer, know we closed a

as as that strategy us. we is if we're keep lights far can for short-term a So on, great concerned, one

Greg McGinniss

overlap how of your probably people terms as like Open-Air to does any shopping want makes Just in did centers in Or Huntsville understand there's for there you Lifestyle And Then in is Yes, whether learning leasing team that leasing trying understand versus to outlets? need Center? to quick probably, sense. hire? look update lease-up a on it broadly is well. new an

Justin Stein

really organization, we on about remember, to in excited certain have people we Huntsville. or a this leasing the opportunity lululemon. team are the are means lease whether you based account account, to So it's at And Nike which

head have directors, with estate that real on retailers. estate the the for been And we've deep these so all times, the relationships And lot with real relationships, are a these people of we outlet channel. same the of dealing the companies of

a We business. leasing of from has come side also the tenant team the that have

So of in an ahead operations a we are to and leasing, we're excited it. a us equipped from really marketing Huntsville about and from side well handle what's

Operator

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

Michael Mueller

achieved looking yields it on when is near-term kind on you the development, fourth in at pursuing about you just to higher side. different or curious actively more sort of being the on I understand investment comes I'm just the opportunistic the acquisitions developments that deployment? that focus But quarter, of are

Stephen Yalof

Yes.

the which acquisitions. mean, assets look Yes, X yields take also I we've at today. build And just a could about we cost, think that them made. if going-in you those XX% of for acquisitions I probably replacement look the at on the purchased for you

pretty looks it a sound So strategy. like

see we we're and ones to ones wouldn't we're And these to team there's opportunistic. turnaround target to the growth some if that centers, those that going shopping those I we're go specialists, are going consider are our of the but be outsized in opportunity after.

Operator

is a Our follow-up Floris Point. from Compass question Dijkum next with

Floris Gerbrand van Dijkum

tenant, note largest here. actually of X.X%. second that I at couple leased your SPG a directly, Just not X.X%. but Spark They is follow-ups SPG or

of account combines, So X% Capri than the they've if leasing. brands, space soft -- I terms negotiated and of pretty pretty apparently at their paying Tapestry X% But about pay of your less well with and in rents. the look for luxury they

maybe to centers? and attract control can multiple what by to you for some brands into talk been the any this to and happen does have luxury Steve, way, don't X again, for of But those those -- of it while, your able the to be get operators. but those -- we've a higher-end you saying needs You about what LVMH caring brands. to take

that. some to properties? And in order for other presumably, on in luxury working to happen, your your the you get view, to retailers of tenant What things are those you're that need

Stephen Yalof

base. merchandise don't customer community the Well, first of seen for the and we've of a all, growth shopping shopping that the have. our you we outsized -- portfolio lot for centers, in a center And you

a customer to it we a our isn't and want point center of large shopping a customer point know that be you who and the bringing not to their have price is, don't is, make know audience shop successful. to we price of what So going regardless to mistake

could a there's road So is to going opportunity elevated, to luxury support us be more to bridge centers increasing It's and we than of require that handful help us a of we to need have elevation. great foundation better travel. that that those a better of shopping some think building

day we there's make our past it's know that something need got in a what away, We that we We that do in execute yet You it. population to in sure it's but after we and to far centers think think about constant them regularly. where is don't to to of all because our are calls, it. we responsibility going we're aren't to every retailers -- we're a do. And We've to strategy them need that of that we we've it speaking mentioned, said brands. as know communication with those

job of of a center. core a and shopping that brands, great done where of really XX% a that bringing are we've are our there's new shopping diverse tenants meantime, population brand center, speak of Tanger is brand Nashville to new to focus And are customer is. our the the In new And center really channel. retailers the to of that also spot to example a sweet outlet that's comes that directly good

the North growth, I with to the continue we're rent business wants grow get customer Star in positive luxury. to that ultimately spreads to retailers to revenue of we'll and base to But continue think shop. our meantime, our that going deliver

Floris Gerbrand van Dijkum

] going prior arm forward my at over And I stabilizing prior When or COVID the and see still that guess was percentage, to that what When I is think tenancy around number you temp to think number or normalized I reducing we [ retail time X%. could that to follow-up more expect again, do is follow-up the period? XX%.

Stephen Yalof

Look, when the to at each again, shopping focuses hands general managers the leasing in -- our of put the our one of we rebuilt we short-term here centers. when one team post-COVID, Tanger, of in was

each one team, we reps to our XX So added leasing new for of tenant the centers.

centers. we're to XX Now up

had is have it. So our greater because pace course, past a people than so it many in be short-term we on leasing going been of more focusing lot the to

going keeps I said, that of as a one earlier, an to to at been One that on, for coming said, lights buy." can. look gives one as cash "try keeps we Michael constantly vacancy just before square opportunity. best as that And very successful We're and flowing, see us. they to new we one strategy. that spaces a retailers we All leasing strategy it's space or foot opportunity business shared of keep when into short-term that leased the there's those

have as and going And center a desirable maintain the to out of I I of we short-term they short-term sitting them court space at to tenant -- Also, a of that just if the kick less one slide that and continue level shopping temp. is can in tenant to centers into. to that does to center I'm ultimately shopping if my going stay, re-lease space. we're want what find not

strategy. as to So we're a going to it continue use

And critical very one. temp, been we've getting organic of anxious us. on rent purposes. think us We're that I we been as lot growth. mark-to-market it's that good very successful of to of a in It served the been space. for a great And a a opportunity, get rent replacing conversion. Obviously, revenue is source for lot is great growth this there, embedded see great we've

that our as great lot sure to the we after go asset going best see growth. retailers we're of the to to grow not organic opportunity revenues going to that source we our replace our with a ability see also And every renewals. and tenants, those renew centers of new portfolio. manage across of we're to make A We

Floris Gerbrand van Dijkum

temp assume tenancy the to not does just your be in clear, next But portfolio guidance any months? reduction XX over your in

Stephen Yalof

on reduce its grow that continue permanent as to think we I will tenancy. the tenancy own temp

full-term, the in in core is high-paying to can can we we're business. long-term we're strategy flow while revenue rent to meantime, keeping we going North is generate -- that that's the our again, to Star strategies sure in the the business. We're centers. goal whatever right make In we We're the get long-term to That do business. leases. -- we'll cash collecting So we're our leasing and time whatever permanent to use that the use of keeping to secured in

Operator

question is the Sachs. Our Burrows Goldman last Caitlin with line of from

Caitlin Burrows

just a Maybe we couple hour the before to of ones mark. quick get

of have the a up So spread a leasing are it function leasing new like expirations that topic. do higher renewal the being Realize 'XX 'XX end But versus looked to looking leases. XX-K, ABR. follow-up on expected at spreads the somewhat

they're in could really wondering the population so do and whether quality not talk those I'm an spaces, or 'XX lease about So of you maybe issue. if that's comps expirations have just higher tough

Unknown Executive

leases of of of mix our a centers. lot So the terms is the in that of population just

You there's wide look a range. supplemental, in the

Some just of those XX-year have a that you centers anniversary, little a bit are rent. higher on of

more in much about what And portfolio. who's in our are correct. it's and So around expiring is than that rather pool you something aggregate

is leasing do. or impacted to we're spread going renewal net Our amount of to be the retenanting going by

is we've been as -- increases and We we able continue that last overall, to quarters OCR have to overall, X believe we're is driven by positive that attain. to demonstrated rent for really driving our have the the going spreads

Caitlin Burrows

Got it.

wondering are based in centers anniversarying they they add established there Again, less. because ago, really now just kind 'XX, and wash? well higher, if of tough reality, like they were a maybe XX be that I'm there not So the they you some something to when comps years and they or deserve anything perhaps or to Is it's the if, it's on comps? then when if that were of is are built only say in like tough were Or upside on higher of built. they is mix kind so expirations

Unknown Executive

Caitlin, more ensuring We've about our of covering taxes that fees. base rent it recoveries, just of last couple and quarters in their component. adding talked that's of the the the the CAM share are other is piece of the for advertising and tenants

skewed base of you're total pool leads not a on more just rent to improve recovery necessarily in gross components. sure a strategy, are can But themselves, and of be the be it or talked about, as pool rent layered throughout paying going by which to that focus. and growing continuing of The little which some centers the can all to rent focus not comparing And space a because issue. with more ones rent are to and rents to the total So we going be year-to-year our growing our Michael in focus, growing mentioned, is issue our is as of in Steve where each comps it's rents, Michael continue individual a NOI. a that total tougher

Caitlin Burrows

And expand recent necessarily tenants perhaps new following those new tenants question, in but the Floris' talk on about you're Okay. on are just you and were could and more maybe maybe guys of are active 'XX. luxury, to up that not could that types legacy in that then looking XQ who be seeing today

can any more details you but and who's earlier, like beauty, that on mentioned give you Steve home, think more like I wellness, you driving activity guys doing health see? this

Justin Stein

Caitlin, it's Justin.

strategy. proud are our of diversification We our to execution very

it's As home beverage center, bunch X in and the done walls whether a opportunities concepts. Steve within and done opportunity peripheral our the land portfolio, or mentioned with of earlier, entertainment category, deals food we've in we've of business throughout the beauty bookstores and our

in So We we've and excited very as outlet the finding feel 'XX that, them, and into 'XX, beyond. brands are and the in a portfolio proud a new point distribution done. of profitable we that new will continue we that brands what we're are ton of channel brought bringing for about 'XX

Operator

gentlemen, and conclude question-and-answer will session Ladies today's our also you. teleconference. Thank this and

your time. a thank and this disconnect you lines now day. participation, may for have You wonderful at your We

Tanger (SKT) 16 Feb 242023 Q4 Earnings call transcript