SKT - Earnings call transcript Q1 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

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 First Quarter 2024 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 IR 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

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

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

Stephen Yalof

and were XX% basis nearly for quarter and spreads.Rent reflected re-tenanted rent average X.X portfolio initiatives. by pursuing our grew of space in of spreads the good into external by trailing feet of momentum value positive quarter representing in the square to first successfully over spreads increase XX%, our are pleased leased Last XX% internal selectively efforts, XX ability FFO share on NOI portfolio, our the and to as execute and million volume Center by continue our I'm carried months, XX% to performance. solid marketing morning. we unlocking growth and our a execution and per And announce than space. Same on comparable key of XX% embedded of initiatives more Thank to driven external rent Leasing quarter of an and renewals. another year's growth.In and our and indicators quarter the first for you reprice for our core X.X% the operating, leasing, of we GLA, our our strategic

pipeline business of was as XX.X%, flat our of our users points. existing with portfolio their seeking deals XX, portfolio to the grow year with our best-in-class robust maintain total with for March with in to new us.As space and brands, we pleased basis XX to a demand the up categories, prior for in and period progress same the are portfolio We retailer's portfolio center occupancy Tanger

As utility prioritizing discussed that selected and To end, to we last demand stores space and our quarter, portfolio appropriate, overall re-tenanting we to in on the over rightsizing experience. enhancement. continue focused create and mix, shopper renewing enhance centers. professionals in grow merchandising are Where we're leasing for our occupancy order

be to we on of uses of an and and tourist and to activate experiences estate and we the local driver of and a greater monetize increased continue we to our levels.Peripheral power result past have in our as than Today, catalyst historical Over has as continued years, land incremental our a trade. few returning real re-tenanting adds activity, pricing variety which complementary growth the rates previous may higher important seen both diversity renewal rates to drive center driving see to renewal attractions, averages. with

was which a categories weather-related year up last local by we've more as enjoy added, the closures. to of and shoppers. demand the elevated frequent Additionally, centers areas include the as new shoppers beverage, have uniquely are and the broader benefiting locations to to advantage additional that the the of creates travel slightly them January our for from cater and destination users.Traffic and country entertainment, and mix in was and and as serving drivers which also our tourist of growth. positions food are are retailers footwear demographic, health challenging our both shoppers destinations, and apparel high migration beauty of experiencing employment well This These quarter trends.We population impacted centers,

$XXX, over visits pleased centers by the However, the momentum, athletic timing to of from in part Sales progressed the this stronger are our with in numbers.We to to Tanger and per to sales and led due a growing continues fourth last X with improvement footwear the total local XX-month tourist reported the portfolio foot a in sequential of quarter Nashville March year-end Easter. the year. earlier platform was apparel, offset drove the increase added square integration family an population. trailing as benefiting quarter we shopper February build brands and

traffic As most Nashville.Both proven strong these platform. for Huntsville retailers of Tanger sales natural welcoming look our have fits the to to space to Asheville grow, and be leases continue and executed and exciting centers our forward contributors we've remaining to and to

for a are executing operators beverage later against track food new and expected continue shopper see centers, with balance expertise With managers opportunities. provided we expansion.Our strategic our each opportunities year. to additions, sheet acquisition wider plans to and proven additional consider as as market of this addressable and operational open-air we announcements, have our tenant We selectively asset position and pursue record amenities solid

their to best-in-class to incorporates want platform a the Tanger our all and thank and will create shoppers, leveraging approach, now to of We disciplined support Michael. as success. leasing relationships well toward retailer over turn value.I operating call maintain partners to like as and continued our I'd stakeholders our contributions which our the team, retailer for our

Michael Bilerman

offset year. our Thank first activity to continue to financial you, growth, first going financial reduced we strong recent of increased backed $X.XX driven results the led the the discuss by by rate growth for core first balance FFO which increased saw the deliver solid quarter prior NOI our quarter a the quarter. share upsizing, interest from quarter, Center operating that partially and by positive quarter.Same added the our in and quarter in results, and our first became Overall, and continued rental internal Today, revenues first with higher expense has external fourth a sheet, we and which pricing enhanced talked contributions to to effective along a credit.In I'm spreads higher was we from the guidance from centers by X X.X% growth, both solid $X.XX the increased base swaps, the recoveries. robust driven sheet about, share year the compared leasing Steve. expense by as interest during balance new the delivered which was rent Steve in of increased the on unsecured rent lines This of further extension, new

partially In in prior prior the refunds addition, removal which the $X.XX milder were to first expenses than expenses was from compared we by additional expense winter higher year recognized in snow certain year. This the related we offset to anticipated. periods, approximately quarter,

million XXXX billion went sheet internal a ample outstanding market with flow external balance positioned largely our support the in Our pro $X.X our maturities well quarter approximately growth remains to debt debt. rate dividends.At total XX% at rates. balance $XXX after initiatives this end, cash fixed into had swaps late fixed and capitalization of that had minimal net free and rata interest an into we is effect debt of of low and sheet, billion Including equity of rate $X.X February of year, leverage,

EBITDA basis, between came the pro debt the the trailing the would forma X.Xx a fourth net adjusted for adjusted Subsequent for reduced our at X.Xx that our amend trailing enhancing ended X.X extended XXXX, rata centers our X lines maturity in year liquidity, XX-month one share of to and borrowing While new online had XX, Tanger's REIT XX-month sector.At for March Tanger's lowest on investments. was still of cost of $XX the our increased during and a full end, on pursue quarter, estimate pro EBITDA and rata to initiatives. availability cash lines we we options, our that quarter of XXXX be leverage pro ratio our of unsecured growth we our pleased end, with credit, through $XXX to million million which flexibility and further were credit of quarter to

capacity $XXX approval. With to million to our to accordion feature lender increased the $XXX by with an that capacity to million billion subject borrowing increase $X.X amendment,

were at you per yielding XX share $X.XX overall our April, with credit including point approved our our growth, our lending annualized Board maintained.We was and team. group. dividend and of especially the X% addition, our XX an execution our pricing continued our basis your from Thank shares grid pleased our In during thresholds today. very real which Tanger, were to for strong yield greatly in levels, on with confidence lifted appreciate approximately in a just line while the recast, under our the difficult a estate lender basis dividend basis, In X.X% financial all a increase support improved, of reduction covenant environment, current our points

ratio support the was free our a increased Our quarterly continued low guidance first payout our dividend XX%.Now quarter, XXXX. dividend payout flow covered well to ratio cash turning with In for growth. to our remains at that provides cash

$X.XX core our X% to $X.XX per FFO to expectations $X.XX a We growth share range to by or increasing over are XXXX. X% of

issue other We the assumptions, on our see range guidance have last year-end to due by on better-than-expected our NOI call.For release range -- details All discussed. refunds of growth a I we Same key increased that additional remain our XX the that basis X.XX%, expectations to previously predominantly the unchanged please provided Center night. ends our from X.XX% points on our of issued the both to expectations new expense

will The Wells May and at forward place in Tanger at Florida. be with on are Annual our tours. Outlet May which financial take looking Securities which Estate We X tour stakeholders greatly XXth next Conference, on will seeing events of place Fargo's and conjunction Tanger stop in many X, upcoming on X Real the takes industry Savannah, property

XX, question, management York call New we meetings XX the of in would like take X, York the in hosting May questions. REIT our NAREIT's will up to In in for and that, BMO's X Vegas members I New May now our open please. the conference and Week Las June first through on Operator, addition, on on Conference X.With team can be ICSC at

Operator

from our Bank line Instructions] come the of And with [Operator question Jeff America. will of first Spector

Jeffrey Spector

about question, Congrats Park, in expand combination? outlets tenants in, already? or some let's maybe about on other to and bit know that enhancing a My Are discussed thinking merchandising Are these I that. hoping this, a Deer tenants can first we've maybe more the or just but are maybe at are you're you talk mix. quarter. the but say, little outlets just are yours if these not that

Stephen Yalof

the moving We're again, food away moving more shortly. shoppers a have And we outlet or we create also to tourist were space. number to the brand-new where brands for visit. deals either space.We're restaurants, and better our a adding experience. customer uses, number traction, a from and new the the brands of of to our after new the platform outlet about both in Yes, to for announced But forward after doing a of Tanger brands, proud outlets We in it's Tanger XX% We've also when all. before. they with for portfolio uses, looking or mix customer, far courts We're going when land haven't bring a that retailer that restaurants, a different that tenant signed new diversified looking of really sit-down lot of able because new where of go we're into in experience sit-down into talked of the haven't a Nashville, we're retailers Nashville as to more to those. good quite announcing brands local peripheral to do come after amenities been job a and we're diverse combination things the been something all we're going and

Jeffrey Spector

you've different at this, but in of 'XX, a in work, the achieving tenants? or you've past these categories let's it's and where I on working let's bringing been brought bigger say, you customer this some some a And -- been in are new know of centers then the you new part as year. have

Stephen Yalof

we I that well.So Hilton seeing improve and We're expanded these you coming whole where more and to in, to we for wider I of people Nantucket's brand's you our frequently, as they to the is catchment anchored as complement as and a us just traditional added the far a new Meat to in the a frequency one we're uses expand come generation H&M strategy outlet come Head, when a shopping shopping Go by shopping staying our one see of It's of uses, ago. us, and Fish. seeing back great Absolutely. our opening visit of set new think range is of South the of our And example up shopping for grocery store customer we that's that add Carolina, area well. experience centers, shop centers, at demanding a Nike. of not when power the get centers think

far for numbers and this numbers are in customers as I see build customers and build can to think our responding.And what that's the are product this more going it categories, see they amenities, after. can our sales we're uses, they services you And quarter, our wide-ranging to it continue you quarter. traffic continue that in looking

of on done. the a is that So lot has coming work strength based that team a leasing of lot through our

Operator

come the next of Mailman from line Our Craig Citi. with questions

Craig Mailman

term? X next retention more just you emphasized I go as here drops the in anything Steve, that. so dips like retention clearly, occupancy seemed want the we're remerchandising. of to re-tenanting could about guys to be near and purposeful about, year Should if and quarter or are the kind down or back up commentary that surprised we this you It not be expecting in

Michael Bilerman

think Same to NOI growth. that guidance surprises. to don't grown I be But to growth. Same there'll Center Center to X.X% any we guided No, We've X% NOI X% X.X%

that are guidance. think contemplated in I those our numbers all So

that XX% to anticipate Sorry, customer we're I we think space take better we retailers years, of getting some of locations been then that renewal, it's over year, for is retain concerned, our our XX% opportunity been strategy. visible a great said number it's if going getting as And of to productive. are basis been see are We're because more There's that This on on be XX XX, of mean years. that we've spreads are base last close a some I older retailers less to over great XX, and we renewal new XX% re-tenant. rightsized to That's that that brand re-tenanting.We're inside base a what X.X, portfolio far and them the trade our on announcing renewal renewing some that in with our to be that's of shortly we'll us the X.XX%, renewal to can retailers better past what far looking for I portfolio, the been Craig. we're do doing. strategically, as trend. But that X.XX% to we've far our replace more XX% X as examples

Craig Mailman

moving digital app early are mean bigger picture, front kind using space? kind are the there. are that guys actually these with side have of that how of on through the know it? shopping don't centers. -- on Or about Or initiative know different tracking kind maybe within anything helping initiatives kind of from And patterns? I people you what's a I are more done of of on Or guys are kind but some space of take how centers? new having valuable approaching newer, you these a and the lot that's any if they're reprice their takeaways But your how I customers you the there

Stephen Yalof

our how real to value to been haven't digital our to estate. footprint We order in using internal speak

footprints think demand that the enough should manageable dictates that our and are pricing. supply centers I that -- our of centers

and offers don't our speed digital offers go space, customers relationships our to additional typically to because use We lot in get in front our in we into on that.So to footprint, to an our to customers full-price out sale drive shopping brands drive with a a And great centers. shoppers however, front can't everyday and and discount. offer shoppers our customers. lot of able retailers value retailer into of in can. get as our we're that out of as of the of being are discount our we're partnership to retail, And that discount better our a communicate everyday new digital our communicate partners, able and your with catalyst the example, with space, center In using

Craig Mailman

But the know last on that Do is potential as the maybe helpful. of quarter's particular discussed guys That's of in and guys build you of Michael, there, being end of that Express, there, know you is conferences range kind Then that the the just captured range earnings. from outcomes just kind happen talk you guidance? not tenant really. you've one. which up But of could is in pretty and one a tenant your about at lost I one -- responses outcomes been low it X, I last think for could you range? even clear

Michael Bilerman

Craig, as what today. of, you We our noted, We last about quarter of outcomes guidance, range know we in contemplated we were talked ahead a of it sort this. on call.

believe We Look, through be these stores last to you when are and continue from go overall, business they the productivity. close. different back benefit if range. OCRs it, a having fluid we'll the I in also you usually high pretty And overall, step low that to outlet think generally from And processes, it's process.

the during a and so think XX-year certainly process has outlet the of channel that And of lot we've company. demonstrated this I history communicating points talking this over the been

Craig Mailman

you do OCRs for think that What roughly? target, are the

Michael Bilerman

tenant going to talk not about specific We're OCRs.

portfolio for is OCR the at X.X%. entire Our

we've that as As rents. OCR you've seen, to been been our driving able lift we've

So we believe as forward. extra the in rents sales our overall continue get market, continue to below portfolio that and tenant to gives an that move indication that tailwind we you are our

Operator

questions of Capital with next Markets. come Thomas from Our Todd KeyBanc line the

Todd Thomas

that quarter? I What re-tenanting Same-Store growth just and back tenant you to your that being on activity Same-Store more curious potential XQ some trending? is have growth detail. to you're it that X that line you that around can comments X would have this go headwind sense how year, holiday talking Steve, the I'm this year. And or a some regard just if a first in little on wanted With the provide rate about after I the might months renewal any churn better retention anticipate season. into headwind potential was sight the the you of imagine and particularly of tenant year. a of to the to

Stephen Yalof

a again, I it's a mean, strategy. think don't I it's Well, headwind.

easy strategy. it's a So tenants. to It's great renew existing

maintain getting your pay consistently the continue You nice and occupancy, growth. rent, been tenants we've to

the sure product sure making customer the back. with portfolio, if want for on centers foot of in to it's However, retailers us that per deteriorate, those their whose to that box most sales productive but a center the we've in even our footprint but we're and we we've And past make upgrade who sure merchandiser comes a shopping that as our reinventing to continues COVID. we slowly strategy of more keep of location. tenant a the as retailer square retailers our incumbent been make rent merchandisers us as can, and on put store with the basis store years renewing retailer inside have XX,XXX incumbent a mall, for satisfying for you productive performance they of the to we're narrative few to foot a have for that reinvent that also productivity complement sure more growth putting reinventing particular our us, so they that additional importantly, repositioned retailer.So rightsized that build-outs exited Make the really future, coming for more more -- also of think importantly, who the buy shop forcing constantly a drives has in retailer, the footprint square centers well.I that is that

responding. do grow. we're far money the is uses new by keep deal we're that Warby done OCRs to the we've Great more thanks the think expanding company, the about.A given our over that And And it's what retailers I Warby time. That's do, our who's welcome for we there grown in they're brands that what and going we the done bringing that's can think partnership. re-tenanting our and points. tenants for Huntsville, basis project our these are new with command that on than customer But courage we're going our still that side, talking to to room couple now of And we Centennial year space Parker have. talking for. a particularly that's portfolio Parker, wants. XXX those adding spreads, conviction new our last We're rent coming we're us Alabama, portfolio. leasing brands forward our into that what's We've We so. the partnership about, the those to are with examples we're of which continue to leasing back. to we're center. throughout what That's thrilled first them think I our That's again, at looking to some to shopping

Todd Thomas

renewal XXs from down has where little low mid- rate it normalize of the so kind historically? bit to What to has towards been -- XX% the started or a

Stephen Yalof

That's how we how thinking we're about and it. it, that's planned

Todd Thomas

wanted of I I And just during the range certain maybe Express guess, to on, year. and events follow for up then here outcomes the

just unexpected you you indicated range, that about Michael, lifted X% top budgeted Just was on quarter, they of Because fluid, sudden I take refunds. around restructurings from just tenant provide given But whether this X% bit confidence sounds I'm points and of which to to mentioned reserves else move-outs sometimes detail turn. think last will expense that you XX more curious it bankruptcy debt ABR? they points in you of for are a bad I a they're top had what that XX or is little can you emerge quarter, Same-Store due the points, what's XXX embedded bankruptcies? basis of like there a degree have And realized anything can these basis basis

Stephen Yalof

XQ historically. to bad that the provided debt we Todd. where and call our on When we range, did Sure, talked been X% reference X% had

variety What we that the points and expense still levels. the have can still But quarter, we bad range, our original been -- basis from we which refunds could XX see due outcomes range to guidance, communicate here effectively to we get as that range the sit to that basis the comfortable increased XX is numbers contemplate feel the last of in was by different today debt, alternatives, could public go. XX to a with is today, stores with know Chapter get different come out that list closure there how will Chapter into was to came we want XX, list, X, Express store on about.We a that demonstrates store process the is have. out on there us What store don't outlet the value which stores for Chapter what's closure been of Tanger the platform open-air overall, list, we outlet in X year, X brands that it in have channel, outlet to X% only outlet we've XX was X the trying points. You contemplates retailers. X of when And and X% stores, the you around

Operator

from next questions Sachs. Our Caitlin Burrows come the Goldman line with of

Caitlin Burrows

think you last of earlier, the you year. in on leasing I Steve, did commented the volume

it think square I was which million X.X feet, impressive. pretty is

that So pipeline today, as the the activity, And volume your sustained? of do think not? I why activity can guess, conversations, be or you consider leasing why you guys

Stephen Yalof

yes. EVP of channel. sitting I Leasing that of are think outlet to there's me the we his We do discovering that have head, other next my because shaking a lot brands

that locations allow to the brands outlet are not think, our shop. into our serve they're to that place the position our started communities customer wants traditional necessarily we to finding the be brands we've also and that platform, as We within

the why of So marketplaces of that as retailers tourist-driven, up that's other we're mix. and opened and to for to having were our set such We've of local in a great new traditionally only. velocity whole reserved we outlet retailers create these join uses, the floodgates in population-driven diverse that mix want uses these footprints,

Caitlin Burrows

the mentioned quarter, new but the high, the are this on you spreads, how at pretty leases, impressive TIs And on least too. then they were just leasing pretty

wondering deciding or tenants else was if talk actually what are about trends, and agree the I which someone upon? to So could of what asking type how you for you're TI

Stephen Yalof

flat capital supplemental, the consistent I think we're the estate we tenant the company, types re-tenanted making about if of sequentially, into getting almost into look Caitlin, real see to you build coming at about duration allowance been when productivity. space. are we're that you've all retailers with period. pretty appropriate as of the the the that ahead for build-outs that out gross are the the number tenant spaces you strong. a X.X of payback that substantial that rent pretty providing obviously, the is cases, and TA of investment stores. you a that in a Caitlin, really is And the as they of $XX, dollars on XX% is centers, we're our So years so relatively And can the out think putting the our of know And

Operator

questions the come Floris from with next of Our Dijkum line Van Point. Compass

Floris Gerbrand van Dijkum

on particularly question in I $X you over allocation. you've Huntsville looked capital you A transaction you assets that interested of the was last billion think underwrote. I And year. at executed indicated guys

talk look over of months and centers you're we how those of added many the As maybe to contemplated forward, be lifestyle portfolio pipeline about the stuff that the looking next be more at could so? to XX or

Stephen Yalof

Floris. Sure,

our We're ensure we If where and act and it act about, with are we're able of go we quick, Ashville sheet leasing going opportunities. sure transactions. hold fits So company. bring we we a can platform step amount to transactions to something, make enhancing, back those to that able that We why to our a marketing being to company. not do is can strategy incumbent Huntsville can transactions from positioned when part a it, the or a on where be just us strategy We upon value.We we bear. thinking after want so don't need billion at create about a operating, tremendous $X our of buy our size, and as to that acquire well of that why that platform everything. value balance so and is to think an we've Which look is right? the We're to wanted comes quick lot is looked

additional are there's when transactions liquidity, having So disarray is allows being or able free be and balance marketplace line for cash the in when our us the be in a to clean. act.Our market, flow opportunistic sheet the us operating availability, at to lower-leverage the levels to getting really recast, getting to have able

secured So assets over to take ability we debt. have with the

ventures. to We have joint ability an do

transactions, many want be so that we to able alternatives, have as ensure we want announce ability different we we We want can when we our can the portfolio. minds so prudent, coming market important be the to that want partnerships. growth to are thing all most our we'll in keep is that disciplined, create see that as There we the into the and value that to to to we do articulate to but be

Floris Gerbrand van Dijkum

right so should that evaluating interpretation? And stuff, agreed. as Is you're the when make and announcements presume you and that get things we constantly will

Stephen Yalof

We to are they're there's ones. have an nothing be guidance. to And active lot of but organization in looking the at going opportunities, right embedded a our

That's keep in a And no we'll want have we set have platform we component. we're that to the optimistic feel a at that a outlet the we transaction look that manage don't that to over that ability has see built amount. centers way the we everyone finance apprised deal, and the find and appropriate if relative we because going at return open-air have long that's retail overlook this term.And deals been effective as come lifestyle and through. we operate it not additional deal, that -- to time We to

Floris Gerbrand van Dijkum

to sales ones most view, demand? that potential of likely update progress? you tenants more having the is the that you some this follow bit these receive think more past, in what portfolio? question to can I would I your of your Have to about any of in in your do portfolio, your little give what the are, I've productivity but asked levels? a made if up, an can centers guys And of us getting thoughts know Which perhaps, impact you maybe a your be of and if And types in are tenants Great. that and on luxury-type rental your maybe the on

Justin Stein

throughout evaluate tenant can this a to Harbor Lafayatte we continue Bash, asset. recently Riverhead. Justin. all Yes, Floris, is opened luxury by we in the portfolio, asset. into asset brought recently in Charleston. our Spade tenants opened we National Kate our We And in recently XXX share,

case-by-case, So we continue center-by-center, to going away to that going forward. and penetrate chip that continue we're market at to elevated

Operator

next McGinniss the from Our of come questions Scotiabank. line with Greg

Greg McGinniss

retail REITs. How amongst they're dividend few thinking payout of are the the On yields, years? about lowest next you the one additional with dividend increases along over ratio, the

Stephen Yalof

stock we're dividend we which as us of obviously out growing, Greg that payout dividend board-level raise been years our decision. We've considerable the flow been And number level, factor that yield dividend for is growth, of a free We've FFO COVID, able, that as with allow is last yield a free. cash flow coming of maintaining right? cash and well, look, as price, about to to, [indiscernible], so low think because right? of a growth our is seen has our shareholders. still sharing And ratio in

the raised we internal the so cash ago, weeks as really timing growth CapEx our to continue $X.XX first quarter in of can ratio high of shareholders. should we annualized and couple recently, free in in based a of effective environment.So cost provide of to was capital relative in an And the helps that ratio And noted external how that all over returns fund flow to level in dividend the to higher quarter. we and on growth first to on our quarterly the a a little we'll XX%. flow initiatives the basis That payout release payout share. time share The an cash evaluate just then bit a trend

Greg McGinniss

more can, maintain provide as a expectation is as to the kind you free cash Could -- But much of flow understood. probably you

Stephen Yalof

cash and variables the Those REIT we right? We're flow, balancing free X are regulations about. think that

Greg McGinniss

that may And saw tenant bit trend Has continued consumers Could a is you where provide growth color end? into on strength through trailing in sequential a regarding more see increasing QX? the April? from sales greater situation XX-month you what this quarter

Stephen Yalof

as view. marketing productivity great of We're ahead we deteriorating about marketing both from sales sales older lot the brands with replacing that going centers, what And in lot touristic well. where And merchandising about as with as think catchment. newer new employing we're also has that are localized to is a marketing. shifted.We moving of talk centers suburbanization a to well point about, the a lot that of have that growth. doing to we're a where attract talked sales wonderful a continue optimistic folks that concepts local a going whole the centers We're the of are growth, think, we catchment balanced we're new some of our job our our them, currently of marketing because after our strategies going to paradigm We've to I to that, are contribute shopping also geographies in approach We're that America, of to exist. invest

going So that's why about forward. we're sales optimistic

in do this to March we retailers typically, comps those fairer versus March year, run a and ]. our blend March run far developers fight Easter As and what X make April rate, is April sales as the the rate [ was the

Greg McGinniss

to sales are offerings? in guess that those concepts, particular are new I average tenant some regards of higher you And any well? is doing with those categories there seeing And from new

Stephen Yalof

make more more with and shopper. everybody. wanted. more is variety retailers a out square also on where We're a apparel, space a can with Eagle very [indiscernible] lot far Beauty we far our -- and in pleasantly smaller to part of think with with It faster as delivery, opportunity lot a provides works really the efficient doing those per to and Health far rightsized. The much discipline surprised that productive a center great. more on more foot productive to as great sure footprint, are an that sets, gives stores old floor they and mostly now for our brands these shopping doing But just I apparel, in we're efficient outlets retailers as learning be have stores family us well. basis American really Yes. exceptionally give

Greg McGinniss

questions. have I asking do chastised for At one many risk being more. the too of

are add other level sheet, occupancy, strength opportunities there redevelopment assets with to of any retailer to the of in And any the centers? balance time? most the considered XXs there high footage square is this of the Given the at demand being

Stephen Yalof

is There of locations got adjacent has others, that number are. and been piece we're peripheral adding a to land, centers. be got uncovered shortly. We've Arizona bit that couple our we've It our opening Roadhouse In Well, us Phase mean our that centers. footage a peripheral there's are we've of shopping really -- square ways a in of there's X I strategy one a there couple a That's peripheral center. a good those takes of of number ultimately we shopping example. should flow.But cash Texas a spaces the immediately deals. see not to land, to years a it's ago. signed land

to in peripheral close And serve. markets has that we're So draw of the regional for finding virtue brands, by demand our the that, again, we land fact the the be be we adjacent -- can't parked, our are centers being where of most Tanger in they want line, that the to car that's in centers. heightened to in where if geography are cars and

Operator

the next line questions Evercore with Khanal come from Samir Our ISI. of

Samir Khanal

questions the Michael, how I the on more revenues touch know income have over I'm many the actually do on assets, down sort most quarter, sponsorships, here, just and of to on income much line ancillary been cetera? to has there et just grown income of think understand is was I think tried year-over-year. maybe sponsorships that ancillary side just in that the the time. from you've my And but that's to it in -- you've -- other statement, done. that that the modeling of answered, I trying

Michael Bilerman

Sure.

quarter. just back step first in So the

beside Phoenix, did Bowl significant the a our First where center Westgate right is amount last and played, marketing we in in year Super quarter last first year, of the and Bundall was quarter.

the So year-over-year that's what's comp. affecting

that's and of drive centers. that we partnerships trend other marketing incremental to and year have core able see higher continues full we'll the continue year, what be you'll the growth top overall at step activate, through a other back at Now go the income our sources portfolio, continue lot the we're and a revenues to as we our than to we to priority.And centers to do if our think driving

regional talking Steve the want amount every those get off of about, tenants day. driving each a being fair draws, in consumers of cars front of Just was that there's what and to

Samir Khanal

still that seems it line. So like grow you can

year, last think I up you're like XX%.

number of sort still growth, that's sort to the the about? is right of it So think double-digit

Leslie Swanson

Leslie is see Swanson, Officer. This lot Chief Absolutely. a of We potential. Operating

very outlined revenue, committed perspective on solar, see ancillary that that we're our over from we've means years, marketing from to not from charging. our and streams several a which keenly we're focused operational lot media incremental EV the sponsorship a and come ROI very last As as very, of we revenue partnerships well, only

those country. So all that looking strategic a made line item of what across in is by efforts culmination the teams you're of at our

Samir Khanal

the around I ratio. lot, kind of quarter. And What's one for this term business? and higher for Michael, to about expense the long a it then was right number the moves me, is last think that for recovery the think I know much

Michael Bilerman

about year in from level. the that a little think this bit So probably totality we be up in mid-XXs, maybe

The first talked refunds OpEx. the expense which quarter from that did about, our I reduced benefit

because -- that the show the bit. number is down So recovery to was expense a rate operating going higher little

expenses.As the absent is, to the expenses moved fourth we quarters lower as a factor other the the is and variable, largely but flat-ish is The quarters, recoveries few controllable seasonal spreads, the last expect year, there second additional our are higher rate are both as the the to well year because highly half as our cadence uncontrollable in half and structure, during it a we've from reimbursement flat heavily year, should operating be generally talked CAM fixed the level. from in third the first the in spend during you year, just the recovery to of typically relative of about

Is And which total last part growth, rent, why that rent We about has which helpful? both trying the higher and the increasing which up rent as the talk line reimbursement total to we years, rent to of our are shows line. and from all drops drive that's continue to base which drive strategy, is net of reimbursements been number tenants, NOI. base in

Samir Khanal

Yes, Yes. it is.

Operator

questions from the of Vince Green line come next with Our Street. Tibone

Vince Tibone

down think should year, how lower we begin any much share with this was average X way? on this spreads current renewal me, renewal 'XX. years. positive versus the really these up. be to term and right sense pressured Renewal while like currently get pick is current and trying start 'XX there signed you lease once color levels can rolling leases feels about just excuse about about spreads 'XX. 'XX, than the sales spreads I'm unless during a you the tenant? I Or little renewal 'XX, after Am the anniversary-ing in It could the as sales are first But turned team a thinking

Doug McDonald

we continue aren't is Sure, Vince, still and there you're discrepancies, there's room throughout where those pursue there and traffic different its for as growth rent right, that many opportunities the that of but drivers, are opportunities, look And last this rental level. sense going some the in Those at quarters. Doug. remerchandising that has is average, tenant to the for elements new X.X% situations if productivity and of is you market feel when creating we that for additional in vibrancy, to bringing all that looking vintage opportunities When increases. few we somewhat tenants, of additional the are are portfolio out the maxing portfolio those Steve feel we our discussed

Vince Tibone

math. kind about maybe of But up. of Okay. to trying to That's some basic follow just think just fair. I'm OCR the

are probably sales than contractual are cumulatively. X over say, years, let's So more bumps up X% that,

when and these lever, to new spreads spreads, levels I'm next think to few is a pull attractive?Or side the of could So -- can OCRs positive totally just you to the at out leases, I the kind OCRs guys out Because robust Because do guess, it the at on I lot at like, I'm in figure spread together new opportunity. I'm struggling on put you I But trying on you pieces renewal renewal years? yes, great for I came the can -- you figure remerchandising the the those push a what levels. place, least, stay how accomplished get to lever that could keep the continue think guess current you'll to to keep the get I'm there's keep on current be better or trying where or team is you push able imagine already tenants. further to do of

Doug McDonald

Well center. that stay look, in our expiring we've need the order that tenants those have shown productive now to to be retailers leases, in they

we're store reposition, to rightsized or going them a to not going if downsize, them. either productive, to So we're is ask replace

the for new lever the competition you're if -- the is tenants shopping that for center. rents key the are growing productive retailers renewing So coming from into that are

Vince Tibone

That's one maybe then fair. for And last Makes me. one sense.

a how demand maybe retailer it much that obviously kind Just matter there. but just Or Like seems store up. inventory the tighter could strategies you strategies -- your change, do today, could -- yes, to all for trends at for get curious everyone does do on outlet like space? little thoughts inventory is it impact think you comments how loosen new opening? we in of and Like

Doug McDonald

in going allow to retailers brands, them outlet what And outlet that center an sell to to and of Yes. gives an brands, of a number the taste with opportunity have growing a is. inventory. of Look, different our strategy but an We've the it business to of fastest things. have as of becomes some And that you I a done in think through outlet you're not direct-to-consumer what lot have that a lease aspirational immediate that any excess. issue, not have particular that also platform are in do of It's are strategy because other going center a brands a always Hence, look at our a an do retailers our brands to come those there's may shop that XX-year to portfolio.We other outlet pop-up within number channel. customer to if at worth brands lot clear inventory. look, of be excess we a year's from using might inventory a clear excess shops

then it's ecosystem. of through first entry ultimately engage their the up and a retailer consumer for new to trade them So point a

we verse a end of outlet that and use chapter reasons X strategies why at sort either about those could brands of strategy, are as dozens again, that, of spectrum. different talk So but

Operator

come Our the with Mike Mueller line next of from questions JPMorgan.

Michael Mueller

the follow-up quick peripheral on a Just strategy. land

that own ultimately unused it's own, already at how already you that you're today? trying don't if and And center it have ability acquire, you centers or land on? this you is is clarification, land do to that and land to For something that that next own developing, many a put you are

Justin Stein

that last we Steve some Mike, doing brought at brands peripheral We've to mentioned months. XX Texas Gate. XX of been Roadhouse West job in already and of it's and land monetizing Justin. Primarily, it's the land good that owned. that a over activating the we have

far We at asset.We Beach of in And our also our team of in believe somebody, the this bit ones, on our as week. amount as recently land Myrtle X Coffee We little executed we much do our many in a a there's there's SS That's probably land. a We with very opportunity. we how shop peripheral half feel in peripheral brought assets, heavily to that Brew Planet tremendous opportunity assets. can what Fitness believe additional believe over Savannah, that how we land. recently

Operator

Thank you.

of end that, And question-and-answer participation. conclude the your reached today's appreciate does teleconference. have session. that with We our We

the enjoy your day. You may disconnect of this and rest at time

Tanger (SKT) 1 May 242024 Q1 Earnings call transcript