SKT - Earnings call transcript Q4 2024

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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 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, this call may contain forward-looking statements that are subject to numerous risks and uncertainties, and actual results could differ materially from those projected. our detailed the and discussion to Commission and uncertainties. you a for of direct filings Securities with Exchange We these risks

as in to the During non-GAAP directly supplemental comparable G. will information. we measures most release of defined are and financial measures our included Reconciliations measures this Regulation earnings by non-GAAP also these GAAP SEC our call, financial discuss in

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

include important February to that note Instructions] As time-sensitive such, comments as date, information only management's today's it XX, accurate be is may that [Operator of XXXX.

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

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

the ahead. over Please call Yalof. turn Stephen go to will I now

Stephen Yalof

guidance. Ashley. FFO NOI. year Traffic top the year, and X.X% strong that same-center in of fourth share joining I'm us Thank from per increase you driven highly for full by year quarter the successful at with prior year. X.X% up for year a today. productive our for that delivered grew you, pleased quarter the Thank and end Tanger a was a share culminated in Full to performance the core

on efforts proved our successful events Our through marketing offers by on-center our channels. targeted shoppers focusing to and enhanced marketing digital

total foot a by and were X% on grew basis. up approximately for $XXX sales year-over-year XX-month to per trailing Comparable square period the X% portfolio

base bigger diversify that frequent by mix new new a Tanger resonate fun longer to influences a with growing age group. Our to for focus the experience our as visits our trips engaging brands, retailers, centers on improving we and and wider categories more create of shopper spends adding and and quality continues portfolio our

beauty restaurants, have expanded to home sought-after brands and tenant categories, contributed this including success. and New

at the year-over-year points basis XX quarter. XX%, the center basis ended up We for points with occupancy year XX and

points same-center the for XX period, basis was the year XX.X%, occupancy XX basis points for up and quarter. the For same

have spreads We positive rent reported consecutive quarters. for XX

completed total X.X XXX tenanted we space spreads Tanger the and store portfolios. of For spreads with on transactions to the XX%. square centers feet XX% continue have million demonstrating retailers and reinvest spreads renewed across on space year, value on their grow, as This includes new XX% rent retail

continue and to We acquired market drive Shopper Ohio. call. us suburbs build and past last in were growing Tanger centers The digital Chenal Rock, and loyalty of in we've strategically Club desirable program to valued well-established through sales insight Promenade portfolio GLA external target us feet provides regard our over which our to first X million growth, evolve consisting our continues these acquisitions NOI. of and With year Tanger our million have and $XX at and the since of analytics, traffic approximately over grow to Pinecrest new and added X.X growth. of capabilities. in marketing on added of to centers Little one clear interaction our enabling square with development, customers of the of most marketing the X Cleveland, Arkansas which Two X turn the initiatives, years, in Sunbelt and open-air X Membership these

office, lululemon, rapidly square as is dining shopping, Sephora entertainment drawing foot lifestyle XXXX for Central sits growing Athleta lifestyle million. for the as of Chenal This regional of destination such dining, well new Arkansas's as an Anthropologie power. elevated which and middle December center state's and market's residential, and medical Urban in the by Apple, only complemented casual variety Outfitters acquired uses, and the at Promenade includes lineup we adding Theater. AMC highly hotel to a property sought-after of center, are regional These in national XXX,XXX and and The and and a and retailers boasts is options upscale $XX stores. open-air brands prominent IMAX community of a shopping that This local

a center this Foods, Whole mixed-use anchored XXX,XXX by $XXX million acquired we for square foot month. is Pinecrest open-air earlier which

As destination, national, entertainment a is and has of newly upscale Madewell, of offices curated Pinecrest for also Sephora as entry to Warby foot premier is contributing roster and as Ohio's and Alo Yoga, choice brands, The regional and adjacent this hotel RH retailers Mansion to the dining become home Northeast first to retail center seeking developed high-end includes modern XX-day Restaurant, an well entertainment Parker expansive residential a and roster into apartments, tenant market. upscale AC including local options. mix and Pinecrest traffic. and impressive top

has for portfolio growth scalable existing continued positioned platform through Our acquired Tanger centers. newly and our

value footprint high-quality, our trade benefit continue our outsized to existing proposition platform. over to ability assets local MSAs Our in growth well-positioned serve from both and positioning, across that time, validating tourist grow should and populations and employment our strategic population

external create by we specialty marketing value Our market and leveraging strategy on targeting can additional in where is strengths the our growth open-air the operations. center dominant focused leasing, retail across

the is unwavering and for outlet channel has proposition value in proven retailers shoppers. both an and unmatched confidence to Our deliver

meet in criteria invest growth over the We investment across provide to opportunities open-air sustained disciplined and that will our continue pursue for time. and landscape

free with flexibility coupled record Our delivering flow our these cash opportunities. of with pursue sheet, to strong annual balance us well-positioned leverage provides new low the track

I made external potential thank platform years, growth differentiating to value few financial and opportunities support. the partners, members, portfolio Over for Tanger want on our unlock the team retail progress shoppers while past embedded in stakeholders to estate our continued our existing your capitalizing real dedicated within through tremendous growth. we've creation

discuss turn our financial Michael detail. now results over to to the outlook more call in and I'll

Michael Bilerman

of which which our to Steve. to represents growth you, to growth the $X.XX expectations, $X.XX came discuss compared for guidance, core XXXX fourth representing share Thank results, In X% end core balance in and in external $X.XX XXXX, our Today, a XXXX. we growth. at the a over activity outline to our core share then share year, quarter X% our prior inaugural the quarter high FFO sheet X.X% I'm a of the financial fourth delivered active fourth of and FFO going FFO quarter, leading of

Our offset results the strong by higher driven external retailer and the swap earlier rents growth, NOI by financial expense the quarter, for leasing to base and increased by recoveries. rental last from internal revenues robust demand has X% and activity, maturities driven led were continued strong year. Same-center increased which higher

up year was full X.X%. Our same-center NOI

We acquisition $XX Rock for Cleveland Promenade in available made cash Little with the at of have the the Chenal the Pinecrest and acquisitions in on week growth with million. front Both acquisition been liquidity. December of for $XXX last active on and million external were hand in

both as operating, add portfolio centers deliver marketing we our that an We Tanger's centers to future will platforms. are growth and X% leverage return approximate over with these year excited estimate leasing first time during to their and

EBITDA in balance versus between ending XXXX full a at we forma and X the sheet From ending forma that XXXX. a at late centers for for Xx debt from X.Xx pro pro would perspective, year net and be both our X.Xx added EBITDA to acquisitions, XXXX X.Xx

gross at results. October that ATM $XX.XX issued with of which quarter approximately million, million under previously sold XQ proceeds generating $XX includes During X.X weighted we announced of our XXXX, in the a price average $XX we that shares million fourth of we

generating million year, gross common full we million the sold For $XXX of proceeds. shares, X.X

during of at addition, for agreements fourth into future $XX the shares of entered proceeds. In quarter, ATM sale under weighted average gross X.X forward million price we our million representing a $XX.XX,

liquidity. be drawn can and unsettled remain months, shares XX to XX down with these future of us All the next over providing

complete cash and a of standpoint, million credit. unsecured year million uses $XX week, availability rata purchase the This low and hand on we and cash cash leverage after line our full $XXX $XXX under largely Little with of credit to year-end ample $XX remains acquisition liquidity with leverage, rate lines and last in million And our cash additional external ended of growth equity From sources Rock. pro the the we Pinecrest. forward million equivalents reflected and balance well used credit flow dividends. last free initiatives the fund and internal low of sheet through year's fixed cash million Overall, to of upsized liquidity lines our and and $XX our positioned debt, undrawn of

$X.XX distribution. for a a payout payout low continued ending dividend XXXX remains funds ratio our dividend cash XX% with with available annualized of well covered as Our a percentage

our to guidance for turning XXXX. Now

not We are X% $X.XX between introducing range of acquisition assume share X%. and the does core recent FFO a includes represents which Chenal per additional or activity. any but to acquisitions, growth guidance Pinecrest and This financing $X.XX,

range We now to includes for expect Huntsville. NOI growth be X% our Asheville and Nashville, X%. of NOI in pool same-center note, same-center a XXXX, And to

$XX.X at relative levels years, will is expected X to million million. estimated expense the G&A consistent while last to Our interest remain $XX.X at

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

with we excited stakeholders financial before various and conferences, call we questions, events. to to the open just engage And our for are continue property at tours

We Conference attending Annual May York Tanger New in American Fargo's in Street XXth Real with REIT Town March, of a Charleston early participating ISI's then on X We'll York Global in CEO BMO's Wells tour in XXth late also America's Summit Multi-property Securities Center North in XX be tour Conference. Florida and in in Estate Bank mid-May Citi's connection Huntsville will Estate May Evercore Outlets Real be in Property March, at Bridg in tour. REIT Conference New Retail Annual connection Executive a of of on with

operator, with we that, can take first question. And our

Operator

is Our from Craig Mailman coming question Instructions] [Operator Citi. first from today

Craig Mailman

for you closer the anything just forward? other? just sight here that's anything that of about pad talk or you you deploying Can sites redevelopment guys Can capital there pull of the down that line finish through to Is equity of on given have walk kind it? acquisition year line the in or pipeline and decision the on to this needs

Michael Bilerman

Great. Thank you, Craig.

just that an as are on side, volume future the just perspective. the external internal think given for really at within both to felt outlook, the that $XX we of well portfolio those to can a that XX yield down the and potential as core things we from uses. I a ATM and having we liquidity, and price we next And reasonable external, that's draw was million was over a given that months. accretive felt And XX amount

that capital below but are working actively and have take in remains on We we -- if with know, The it's outstanding them, deploy leverage when you Xx. we balance to down are time shape but things, sheet, close of a needed. lot only as low there announce we'll deals

to so the our really we drawn generating that deploy in targeted if with able to would for able most of cash we're portfolio core free be And that flow the that. used capital. is And that's be were equity CapEx

Craig Mailman

geographically want there? you how type yields would initial of of guys cap been acquisitions to portfolio out of X time, that as the cost a in, that bit, little mean sort those of your could at drift lower? capital fit incremental that going over we sourcing more have you I is a there product assume Or really bit successful also yields much down guys should comes

Michael Bilerman

and the think And Rock just I on just future is NOI Craig, as the to we where assets. Little Huntsville and at for we basis, really Pinecrest, it for in the not those X. But growth current and a growth. right? a things in platform to we're Asheville look We're tremendous buying factor of The year opportunity price. use buying our drive yield long-term is evidenced talking see about purchase

big size it's a given billion, $X really $X.X our at billion country. to Just

look at. country. We have both to a It's well outlets centers big as lifestyle as

to need deals in portfolio can a hunt smart to grow don't the a from well continue that and deals, we strategic so here. perspective as And sense, right the as the both financial make perspective elephant do way. We

Craig Mailman

in. more Great. And one maybe slip

tenant or And about there? on of XX been with. through issues other from of You then just pretty stores ABR just percent XX Forever credit your that open-air watch kind have you a of run exposure maybe guys have talk Catalyst how guys much list insulated the dealt the Could within maybe anything represents?

Michael Bilerman

Sure.

that So we XX XX. out of stores Forever X have

small footage. And pretty upside amount there's a relative square believe rents. significant the those it's in we to So

year and not a ability as [indiscernible] to our those. watch overall, I it's come tenants just So tenant we number. credit to would percentage last levels. reasonable we're And overcome then of obviously remains out, -- of over at evidenced try that our situations these -- as There's get large a come Express and ABR, list our ahead when in say and

Operator

is from question from Next of Andrew Reale Bank coming America.

Andrew Reale

seasonality. you or income trading can or down evidence consumer, you're expected I guess just if spending demand on any just been across seeing the in talk beyond pullback patterns levels? curious various your of if markets about Just there's change any and

Stephen Yalof

really quarter the strong. ended We

So up. were our numbers we shape and consumer thought the was in was and our great sales traffic up

a -- we've Going January, January. into issues weather in seen going obviously, lot of into

good think indication that's don't a future run that, rate. I So of

looking to I they're ask are ask think of I as year. not to of to the an continue of the consumer, planning to on portfolios. strength think retailers. We the the strength to buys. We the else give can look open The best that update share. we indication them us how the them pull to And They're retailers anything as back. grow I the loudly about consumer speaks their looking their

Andrew Reale

Okay. the level then beyond and quantify just yields potential get the it steps you the just year and times first for mentioned growth you Can And at a take will there? few X% the the Pinecrest upside to additional maybe potential of Promenade.

Michael Bilerman

those there currently sort expectations. we it we to time takes some out putting they an these to into have same-center can execute come assets able and effective same-center is deals as platform. produce opportunities, ability remerchandising be say of is X-year pool that. leverage the Andrew, we're in But What some that our vacancy, roll growth not solid as to feel as we

Operator

Steve coming Sakwa ISI. is today question from Evercore Next from

Unknown Analyst

XX% question ] 'XX. This on believe for I for schedule, at expiration Steve. ABR on [ A which lease GLA quick and is stands Manus of

high that has are Just I of and with up in rate result year? you that for could really lower retention retention been if the move-outs renewal you conversations for aware going rate are recent wondering for that a in any how this are years. potentially larger understand Obviously, the tenants

trying we're a from are if any there. that risk understand better, potentially there So just bit to coming little

Stephen Yalof

to risk no There's Sure. speak of.

So done a rate for over the our question. retention of strategically. from have retention gone We've thank that last so. asking you From rate down point year renewal the view, or

a in and the spreads of take market benefits renewal performance XX retenanting retailers retenanting, look look weaker new rent at and some there's our versus think a to taking we're opportunity retailers of some of spreads you you taking of quarters our lost a will hasn't share, lot replacing consecutive spreads, of we're the whose add to number our and that. looking have also from We're growth, If new at advantage our positive our new uses, with that of add upside that perhaps kept we variety. up sales centers advantage

health to We would to last, over Sephora the months portfolio. adding and Ulta leaned XX with fairly beauty I our and heavily XX say, on the

just I center. to we think our a shopping. excellent added number of a that of to is our younger benefits believe shopping what them introduce customer We're going brand much to after

I a staying customer, then and think more money. that them of to us have when with done really Sephora longer frequently, spending drawing job and shop there they're ultimately good more Ulta getting

variety we of to view, brands, to continue to from continue So shopper strategic point and new we're a add uses think new so going about for diversify can base. our

Operator

from Next Dijkum question Point. Floris Van coming from is Compass

Floris Gerbrand van Dijkum

lifestyle to somewhat nicely pivoted centers. have you Obviously,

I many Tanger view? If that now. of to types time XX we them NOI of months' time, reasonably months' from of of expect of were types would in centers these percentage get your or XX how you own centers? to what X do think these in got could You've say, And Steve,

Stephen Yalof

thanks the question, for Well, Floris.

You about pivot. talk a

for We I visit more add when think recognizing looking that loyalty. gets done customers. food uses with options options introduced experiential our job was when ago experience a added outlet amenitizing than the In about to for added of they better better We've our of X new our hunt to customers. connection, and X simply outlet beverage center. that the shop came the shopper of properties. started we or We've years for outlet they an to portfolio, one when thrill our pivot started that an us we've more

of So these properties. add the types of a gave move of component of thesis or we sort centers sort the the other outlet lot our shopping building to and strength of our -- and forward shopping the start us value centers really that can

continue they acquire to we'll to and company. -- going continue at to to we're lifestyle operating portfolio. shopping as the centers, We're them question, open-air and our full-price We're to going an answer strategic look are look to

centers shopping value, our So We're we to get leasing, low-yield to tremendous looking not add looking and there. know muscle operations centers leveraging at we're order buy where coupons. put can in we our and our marketing

Floris Gerbrand van Dijkum

you can tenants? what Maybe Maybe a more more be more this touch how for of if percentage that there could your be follow-up deal details CAM. and some maybe you -- on does that CAM you fixed with your give if ultimate us you they and into is could levers wouldn't your Michael. obviously, CAM? results, fixed fixed the And you potential Michael, do how that impact tenants that at transition disposal. and the temp some upside on on does how have And

Michael Bilerman

Thanks, Floris.

And are basis. fixed And our rent those rent think CAM fixed rent account and spreads so spreads, largely, now CAM. most tenants base take when of our into about you on a

tenants you've overall. into years, just upside That's as and million the a just some remerchandising XX% as our that is move X X.X we're as in to rent XXXX getting percentage focused been and down the existing up feet, on reduce some spreads day, of would similar square temp little rent there base seen bit possible, that convert spread, getting the for we're relatively higher operating total as of up and end road efficiently so last be And opportunity And and over we as total for [indiscernible] we've the as recovery why of that XXXX. higher part we're percentage, that pushing at but at about fixed NOI. more, full that's on growing as we're we CAM. year goes expect year last rent fixed And maybe that very that then XX% and the the rate -- we're averaged finishing the

Operator

today from Our Sanabria next coming Juan Markets. question is BMO Capital from

Juan Sanabria

been should helpful, you Catalyst bit XX, Brands experience has a we of XX, the the and would Forever box what to recognizing the it's downtime hoping Just over back think average trying more about years, last small couple of gotten of some please. about your kind little and that how kind talk be size for could and backfill just you've of spaces Forever

Justin Stein

for is Stein. the Thanks Justin this question. Juan,

feet. square to So our anywhere sizes range from the Forever boxes with XX XX,XXX X,XXX

we But And -- spaces. As Michael left. are have several them we pending going with back, what's know but about the but indicated, we deals them there, we we multiple obviously, all on we all years. X we read on last have are over all not XX, only out know, replacing been being we've very there. get If can we out retailers Forever slowly these proactive

one wait is what's paying. eye under that replacing in proactive going every thing is tenants portfolio that or the underperforming tenant at coming rent other our like on, really we're just don't for what's we So and and very keeping them, just not in XX, on We're go Forever away. our to like back is in and these sit future, good that

Juan Sanabria

then you very for good X%. had was 'XX NOI XXXX the It X.X% And midpoint Great. success same-store and growth. with in is

and midpoint for if the the year curious this picture, could regards Michael maybe with of talk this the big you is puts NOI. a for just same-store to So question guidance takes to about

Michael Bilerman

Tanger the perspective, start the you same-center Great. as most I'd NOI variability. welcome the from calls. Thanks, you year, to the and say Juan, have

of range widest the and unknown most the have outcomes. You

business our positive is low, the our metrics evidenced of no spreads, moderation by demand out, leasing, tenant supply from there's is just think high. our rent we business the put in perspective, I that all as

positive. range that the a comfortable guidance start feel And at that we of All is we year with.

contemplates And about very our year. range outcomes. as operating levels and intensive have right, We obviously a credit and you of just role asked downtime, this downtime have range business. spreads different We of our timing,

to X% driving FFO so as look continuing all stakeholders. enterprise FFO X% growth. And sort X% really that to from drive at growth of we perspective, to our it rolls X% healthy into value our an being and for When

relative to that our X% quarterly operating expenses. some to Within there's seasonality basis, a obviously X% on

first been that in And refunds. had you quarter about down last lot as if of so X% but it's of I our 'XX, expenses you, different same-center the snowing year usually a places of back look to doesn't expense snow. don't were some we know

a a X% to given from relative just on perspective. bit quarter, expense that X% cadence just first lower side, just the from will So comp the perspective the to little that likely be

Operator

question today coming from Caitlin is Next Goldman Sachs. from Burrows

Caitlin Burrows

lease Maybe during guess structure, percent like rents X% just COVID, similar rents. were They question of range percent a COVID. of in before if like the a at kind the to overage about as is X on up Floris' but years look I base rents. went I

lease like is normalized like Now Or the actual anything make guys kind happen range. structure, of But X% of that, are still a with they're Obviously, about that's can a base into as outcomes. you to portion down level going that there you sales rents? at Does sense? think the now?

Justin Stein

Caitlin, it's Justin.

are still we've rent focused as expiration an as continue We do previously roll, to fixed. to continue we that continue come opportunity into leases as when up there's very that to our of sales like increase. sweeping So feel discussed, as to leases for variable

marketing feel drive it as will, to strongly which into that sweep Our of doing we're that up, optimistic and driving we be And to variable portfolio. and able as traffic to sales do continue that we long is job keeps fixed. great a our will team

Caitlin Burrows

it. Got

report, Okay. is the side, And guys temp on that it a Wondering then also, moved? if things. that you the Or clarify guys And I occupancy. just at And XX%? high. has XX% just then XX% maybe still occupied? leased you is it could occupancy mean, on like One, couple versus pretty of is then

a seasonal versus like what might So high that wondering to extent be sustainable?

Stephen Yalof

end been XX%-ish pretty of for tenants with that quarter those always the some It been of the range. just year, space far we've the consistent first fill our on saying. going But at fourth year. that have you're probably to the has occupancy all, of is temp what base more Well, of Yes. because temp

But leasing the really is I've So us. temp mentioned that like materially. for a really strategy past, changed in hasn't

of to making we very cash temp We're is that embedded So are as chunk space spaces it. retailers that move from that space fill sure in space flowing. diligent about

So delivery lease obviously temp and always with of date filled the if and on it that take to occupancy vibrant, that occupancy, lights cash retailer until flowing. keep tenant there's a waiting that's signed we'll space the keep

convert going number Embedded into that into like to in base Vineyard markets brands great permanent also and the Those success pop-up a go mentioned success that number and in they there's customer is a that some to continue We've ultimately those the with they we've forward. that that UGG national had term. markets get spaces. Vines, deals. are tenants use into strategy as a them tenants had same them want we're strategy make for before long sure that come a of to using pop-up And as and to going in we've past, retailers

Caitlin Burrows

occupancy? XX% large Got but number, is it. that not a might realize a economic And there lease I be the last spread, one,

Michael Bilerman

Caitlin, that's percentage. occupancy. lease Not

Operator

from Our question coming Zhang JPMorgan. from next today Hong is

Hong Zhang

see expense that, term? call that reading as it, the the of do tenants recoveries I percent will a is XXs the you fixed high CAM, of expectation about just guess like between constant expenses just to lines year. ratio operating guess remain Or pretty commentary were, I near your upside? much this further moving for in the

Michael Bilerman

lot Hong. rent. of that total just it driving Thanks, A is

our the expenses operating than of of CAM, have the in is course relatively the back of what's we able the that to very expense the given our just seasonal on base been ratio the the to a the year. XX%. then rents as denominator operating year, growing being little to flat the year, the couple numerator right? that's denominator, CAM over year So from about be expenses, higher total we're We our the you're bit throughout growing a been the a up when because overall. to growing base we're cadence, And really relative has part efficient what's driving have half both we higher that's at flat 'XX revenue and and So spreads the you're XX% typically, rent And the and causing move. end the did of percent, just half driving front

the first around given about give question, quarter come because on we expense likely last just will to mentioned of expense and bit little operating the a relative Juan's the the year, take. down expenses we that just last I last the year, should quarter our to first refunds the that be talked had XX% in level, But or call affected base. over course year, year,

Operator

question [indiscernible] from Green coming is Next from Street.

Unknown Analyst

I guidance a This is of today blocks was the NOI bit same-store on for curious discuss you if could building XXXX further. Michael Vince.

regards is with and spreads, maybe expense growth. what So terms to in assumed of renewal occupancy changes

Michael Bilerman

Thanks, [ to X% -- assumptions before. X% different our lot a we Look, Nishal of ]. mentioned got I it's

dealing with amount in very shy roll intensive And we're just right? spreads, a that that different are aspect. strategies, how We operationally business, this year, of the expectations use timing, the we roll mean when right? XX% I not got so may different terms deliver, We've on going to of away it. we from

over year. the a range have course outcomes We of different of credit the

expenses obviously timing have do. and can of we We what the our

of we with, to got that sort item single that going get comfortable it detail every to depending So of and one ranges, different X% because towards lift guidance we not something to, X% feel those and a with has year if on, to we very is deliver have line hard and we're potentially stage we the comfortable as we're to goes year, things performance that able be how going there. go, this the at narrow of every on to range and can hopefully that is deliver we're and think work

Unknown Analyst

Got then expense the side. helpful. on you. one more That's And just maybe

in to we at effective pretty management is been color curious run inflation. has I Tanger would So be moving rate on the was return forward? Any their current if expects near levels managing growth helpful. to same-store recent expense expenses years. that operating And think sustainable Do

Leslie Swanson

It's Leslie Swanson.

to our of continue We we properties their adjustments at have to operational of provide to very need look to committed have Certainly, continue we're and clean an can we to expense from our retailers safe. that mitigate we every and part for and to keep to that. teams cost providers efficiency out that's being living year-over-year expense. doing But that to continue part growth, shoppers. extreme to efficiencies And excellence our of find operational we

Operator

coming Peaks from Next question Conor Bank. from Deutsche is

Conor Peaks

to Capri around if or could as and result? estate real talk Tapestry to any you going about merger strategy Maybe your the talk through. a maybe updates wanted adjustments to not any I this

Stephen Yalof

relationship know would Any you information, we with brands, a our had I a is Well, concerned, far of to we obviously grow read last selling -- look, we're to quarter quarter. is within Tapestry. share and as at other folks happened But the what know look, they last over have you our great Coach the like which similar know. Caleres, sale working you last We just as the Tapestry brands. refer -- of continue did brand and of great days. what couple those portfolio, what we with to Stuart we'll you probably to They Weitzman

might to perhaps be Weitzman find Stuart excellence, operations under Caleres' really and now their growing. exciting. some hadn't more we been see stores. us, For we that And under

the loves we're them to speak is. bring we that brand the customer are and can to that our to to know and and And what open plans their shop anxious product for buy we're what that find So we them. brand, to hoping out

their Investor Capri, to had they Day yesterday. regard With

as going looks they're into us. they about. talked important their outlook 'XX retailer And with 'XX think I a and pretty again, very good

be really going challenges shop over to continues important couple continue portfolio. and that that their able continue although we of pretty grow to they've loves that last to business some customer of our strongly And the quarters, feel brand. brand Our a inside brand, to to they're be had

Operator

McGinniss Our is coming next from Greg question Scotiabank. from today

Greg McGinniss

have Is more limited is And been obviously, traditional Or acquisitions, more the looking outlet to retail? balance the due more of portfolio desire at to to focused. open-air shift a non-outlet opportunities? that of this

Stephen Yalof

$X.XX focused buying centers than latest our on Nashville. buying that we center. available shopping a in for our think with primarily to got is learned far development because at look shopping acquisitions the capital we're use replacement Obviously, cost when properties. And the I these building centers great of we a expensive on we're it's dollar, of of less -- sort new

uses in I that after aren't muscle success centers. has confidence outlet to continue uses that additional value in the And add alternative the given really the strength some us that we we business. also to can said and outlet built earlier that call just for full-price that go

I'd business than what full-price there that far Lastly, say that is the more is business. available product outlet in in there's

those outlet we're But that We listed not sale. add marketed have we on at other value think looked to been come going move we or forward that to acquisition. can have unless real any in centers, and centers for

Greg McGinniss

Right.

of any we there own? kind going we in Okay. And this you of much forward because of -- do very outlet should there. is there's you're Or recognize high-quality is non-outlet see what that to willing to limit opportunities kind terms any how see few expect out

Stephen Yalof

be outlet Yes. estate customer beneficial I we've business. development that change overall sense Obviously, at real where may all think that our meantime, we continue can available we going the and at add to to. look that to center definitely paradigm again. the the a would makes we to In new we're obviously, looking marketplace, markets value mean think been

As and our can team, tremendous in -- leasing That's it's we go the marketing far numbers, it's we acquisition our that we our a of value and -- one it. we about really every we're as is add know amount downstream. that how looking through about not leveraging can sure making a number, our at operations,

Operator

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

Todd Thomas

wanted focused to underwriting bit the And but not you pricing. X% -- to yield go that cost at I does looking initial enable on your just realize solely, a the you're yield on capital of assets on X that year with of even is still universe you're look achievable deals today? little you're acquisitions as I ahead? the expand improved today sticking new further you

Stephen Yalof

forward be we only Yes. tremendous able there's add Todd, amount Look, rule, going-in fortunate If company, think believe to and and operating really get we, think move we a an we because we're numbers at that we where looking with I as that more in it's add is company, really that good that yield That think that's economics. X% to those we below X%, to of we've the we are an as can decide property acquisition, been value. where can value. project, a upside

Todd Thomas

right acquisitions you're at gate? grow on the are Tanger new to to initially able platform, go executing Or of well, the backwards does opportunities initially see And you all when after implementing of the strategies? closing, yield that leverage out sort the the you Okay. you're as of yield some your

Michael Bilerman

X-year forward underwritten yield. is yield a Our

into we it the of would does we X- existing plans. activity. with that A the vacancy couple it build it account role has get deal those can quickly So of just we basis lot on there and a centers at those deals we'll of these that a to XX-year to over up some after opportunities. execute remerchandising may expect to in years take look And to the takes as how be time. But

Todd Thomas

one Okay. question. to wanted follow last And just I up. just

around I which, forward. going that's a leases. temp those I that tenant for It about seems I historically, the ask which versus for in think it being pool space, think rents But to permanent strategy question I space, you've around the was tenant Caitlin's guess, the XX%. lower still just is discussed like wanted

decrease that does the at point in consistent portfolio and a better convert tenant the the with merchandising there temp leases some tenant the going economics Are pricing pool? such fairly has you Or pool which remain around permanent XX% leases is Or still rents is those the to today? to of and and economics? temp been level expected the change for temp forward? the there centers perm is rents tenant exposure for And below

Stephen Yalof

Yes.

as being pop-up And rents the pop-up center. don't is there's the Todd, deal that the the national you as particular position those on temp tenant typically that ultimately space That a perform not is less change talk they little assets, can what retailers. well, higher-performing strategy, takes asset to dissimilar that that In that might So where definitely imagine, will as much being temp assets retailers, be. numbers But probably we part bit that were in a look probably and located there's of retailers did permanent temp. said, more. pay for on in short-term that depending

variable. very it's So

that retailer the space deals rent in our where I rights. cheapest space in the fewest think has are the

if a XX-day on example, in the that to notice. a month-to-month, to wants for we recapture space retailer have right come So on days' XX

on center For be tenant space retailer to a nothing cheapest expand looking retailer that space lights prepared us, next to deal. altogether. it to with shopping they'll to available, to long-term needs occupied flowing, I've to a leave move that or got is But that that that's need to vibrant take if the in particular either they're that wants the have that probably the that's door into if cash tenant property that keep or location to going keeps another

we that's use strategy of a So to and as sort both of give temp ends how spectrum. the you try

need Some of that the temp real those monthly pop-up tenants our flexibility, maximum to. some repurpose field give rent-paying and rent-paying lower the as us in higher we in of the tenants retailers estate

Operator

Sachs. from Caitlin is Goldman Burrows a from follow-up Next question

Caitlin Burrows

a somebody follow-up asked on I about Earlier, Yes. just downtime, and had that.

talked type give in tenants So you some have out know your the I I of about is outlet color property historically, center of if guys move that and can you one on -- could quickly. benefits pretty wondering was you

wondering you a XX,XXX, was you square ready that vary like if if a box, timing about like to like to permanent backfill versus if go, think makes X,XXX X,XXX, I that's does that XX,XXX tenant foot So sense? how have

Justin Stein

Justin. it's Caitlin, Yes.

there but that's in in. less to the the beauty of a little yes, tends temp outlet where the bit downtime, program be So channel, comes

open So to Build-outs longer typically program we possible let's much do going mitigate to the as temp channel. this of well. than everything bit channel. going if a that downtime now revenue until as full-price and use utilize do to in program a and that outlet in expired, anticipate, going November a as avoid the they downtime tenant recently the to tenant to we mitigate we're can't temp can we're to But year little assume take exposure are to with fill

Caitlin Burrows

the just about full-price as a strategy? is well in And it. the program, past, that format? and an more temp something today we've which talked Or just lot on that works know the Got of I outlet that is like in

Justin Stein

It works temp when have and implement for both Pine if not well. we're platforms it there, the much there Rock, there's as we and it well, in vacancy extremely in program and But and Crest. Little both Huntsville we in us will implementing

Operator

Markets. Capital from Next question is a follow-up Juan from Sanabria BMO

Juan Sanabria

thoughts of et proximity, you development any guys track on potential Simon's versus down the your in center? planned cetera, have existing Nashville and curious impact Just if the

Stephen Yalof

that market every serve. in competition have We we

is our stroke. on entertainment we're retailers market. business. exciting other just doing that they're new Nashville. We're positioned complex shopping the about we're and as Woods XXX% ground that broke going that far pop There's about where continue a to outlet as we're grow in leased to centers. So other a concerned, of XXX-acre in we're in market excited in part that market, Tiger What's and announced the business centers the and we're There's where

same their XXX-acre -- for ground the on we're opening. Tanger and Tiger So parcel, that. excited their excited for We're

they're facility ranks. We're ice the Soccer have the other street Predator's they is Club that of expanding currently practice from Also, have. their and our location, the number across and the Nashville on fields where

business, to bringing business travel where restaurant, folks markets, of use, planned there's help hotel, medical of the and residential So lot tournaments from and that's soccer over amount sports residential, as use, time. of being continue and and both our that a we country developed, a for new tourism love across to only most us in hockey site well tremendous what entertainment grow in will our that our

Juan Sanabria

a sounds Tiger like and combo. nice Tanger

Stephen Yalof

I guy. should be marketing a

Operator

that webcast. does question-and-answer ladies gentlemen, our We And and reached the of conclude teleconference session. today's end

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

Tanger (SKT) 20 Feb 252024 Q4 Earnings call transcript