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Tanger Factory Outlet Centers (SKT)

Participants
Cyndi Holt Vice President of Investor Relations
Steven Tanger Chief Executive Officer
Jim Williams Senior Vice President and Chief Financial Officer
Tom McDonough President and Chief Operating Officer
Nicholas Yulico UBS
Caitlin Burrows Goldman Sachs
Todd Thomas KeyBanc Capital
Craig Schmidt Bank of America
Michael Mueller JPMorgan
Christy McElroy Citi
Michael Bilerman Citi
Tayo Okusanya Jefferies
Steve Sakwa Evercore ISI
Samir Khanal Evercore ISI
Call transcript
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Cyndi Holt

Good morning. This is Cyndi Holt, Vice President of Investor Relations. And I would like to welcome you to the Tanger Factory Outlet Centers’ First Quarter Conference Call. Yesterday, we issued our earnings release, as well as our supplemental information package and our investor presentation. This information is available on our Investor Relations Web site, investors.tangeroutlet.com. could this statements some numerous that uncertainties actual during will management’s risks that those and forward-looking from be are results note conference of call, comments and projected. Please materially differ subject to We and Commission direct these and for Securities of Exchange uncertainties. discussion you filings detailed the our risks to with a

center these in During defined comparable recorded or our being measures G, same are future. the Regulation from information. operations operating of earnings non-GAAP financial by in FFO, is or time we to call funds net including for also operations non-GAAP the rebroadcast supplemental discuss portfolio directly income. included will call, our and SEC This the GAAP most financial as from for release a in adjusted and of measures net period measures income Reconciliations funds AFFO, operating

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

management’s be your you opportunity will ask ask the We questions will opened limit callers remarks, prepared questions. your all questions. two to the to to for have so Following that call

ahead, Steven Tanger, the call Senior over the today will Officer; I now turn Executive President Officer. Steve. will go we On President and Officer; to Jim McDonough, call Tanger. Williams, and Tom Chief have Vice and Financial Chief Chief Please Operating Steven

Steven Tanger

Trinity. you, Thank

million feet. of with to with we feet XX properties Stock on XX.X grown York start our me milestone your we trading years time with XX million XX month. centers have Since Let significant stock this IPO, the square X.X from Exchange. that our square celebrate will a of later New

keeping we and the about centers accordingly, $XXX designers time, Our enterprise $X highly XX%. our successfully of ourselves of we billion the the different our and annual to shoppers million cycles, at We pride Tanger and navigated keeping adapted a and our economic has on Throughout number dynamic occupied. and compounded growth giving centers want. this of end of retail have a the grown business have they rate quarter, brands relevant about mix tenant value from

true and stayed the evolving aligning consumer best this the long-term experience. our delivering to we and best needs. we adapt have brands, mission with best We can of those the to view, tenant have proven prices successfully preferences, With

We have properties. consistently on focused our of and redevelopment renovation

last making have centers We invested the $XXX more over million Tanger XX years, and exciting. approximately innovative

closures store harsh higher potential to which not accordingly. strong. conditions, weather center Sales our lease confidence we are channel. portfolio. That are experience of traffic said, at winter and the as optimism. XKs shoppers, and some savvy food quarter through recent as this festivals. these face We gathering change and have we liquidations, in years, costs removal have and centers In still the needs this to our added We first does shopping to concerts consistent in working investments events in light community drive adjusted the growth we snow well term as enhanced entire help being which long-term rents. our alter environment, also This invested the we closures, We digital retailers and of also tech experience reflect anticipated still of long-term near our have the across resulted our lower closures unusually traffic challenge guidance of believe including by additional consumer year. variable which In and XXXX platforms, the budgeting than meet and caused outlet led for such unreimbursed come distribution unfortunately amenities, adjustments the are

that approach And encouraging. with a last strategic conversations and for XX and years. successful prospects are effective Our tenants continue has we proven employ the to

level with our of focus generate Importantly, our assets maintains and cash We remain the maintaining very for investing The disciplined sector’s allocation capital one balance cash capital flow. singular needs our in we strong on sheets. a covers of creating in our a decisions company shareholder value. strongest

remains evident of our well executed growth year program. $X.XX repurchase covered. which during a represents Today, dividend secured the and to dividend annual XX%. quarter, our the we per X.X% share recent Our increase priority share, a is three as marks and consecutive XXth is our cumulative by Furthermore, increase rate

will forward, cash, and dividend, of sheet. our including shares we our continuing deleveraging investing raise our common our evaluate balance uses continue priority Going repurchasing to our in to assets,

us, Although, visits the our designers price we not whenever best we our any of us, center. the our outlet outlet for do opportunities. tenant priority keeping the and experience. constant dynamic, remained deliver mix promise, business popular By Throughout value price acquisition brands our and most current brand, development shopper Through all, shoppers. for three have and pillars out monitor, of Tanger equation a we to continue to the a take it

a call In duplicated who mobile shopping to cannot computer over addition, on of outlet device. Tom a will the discuss I’ll with social leasing the now or environment be current experience you. turn the

Tom McDonough

overall retailers. current And In Thanks is recognize our on it near-term and based we with with prospective challenges conversation we appears Steve. tenants, improving. than have months, sentiment while met recent exist more face-to-face the XX

strategic in Over years, our remained approach we’ve to leasing. the

our and and desired fresh Tanger We making choice centers have the for fun, in experience customers. us keep shopping outlet destination retailers centers evolved for and and of to location the the invested in

closures decline and the in the XXXX. XX.X% on XXX,XXX As faced of XX, compared square The feet recaptured portfolio of in XXXX, quarter XXst, consolidated that additional square the XXXX. March XX.X% driven occupancy we of roughly footage was year-over-year first by was primarily to March

we bonds or Fortunately, stores. do any not on other have department

feet. that square XX These occupancy instances, XX million we we’ve maintaining preserving in and months months, allowed ended March increase of March or Total included Recognizing mix are renewed cases, XX.X% the the pressures upside in released blended leases increases. XXXX for trailing average XX, X.X achieved in rental on and modification and certain or leases for the leases long-term terms, that of less. lease included months trailing of or achieved rental These occupancy approximately totaling and all leases tenants these ended optionality rent square approximately for totaling in average for were feet. sustain of revenue, tenants X.X% XX commenced XXX rate. relationship, rates. than increase blended renewed million For centers our terms more maximizing XXXX, near-term XX, leases term leases in months released leases, accommodating some By a of the commenced were X.X XX XXX vibrancy

XX our leases to rates I of where regarding leases or leasing. of one peer. XX we renewed approach short-term would package or represent XX in less our These of which line like with signed geography point some terms market with you To strategy of pages a average. average remains months roughly one space we X% in have an commenced less, our with Our the our or released leases no that months year at of five in signing historical term supplemental history. XXXX, the have or third for perspective, years. selectively a of Of total which our basis is case-by-case throughout and the we’ve XX are you approximately about tenant, leases to of GLA, added additional XX any we’ve on already give employed concentration disclosure

of activity. the We trailing leases impact are months, XX around our of you we although, from this and year the only that level tapering; all showing providing by year. of saw including recent picture now details bankruptcies leases of provide some commenced a we leases, the with last We years balance in activities clear the to including leasing month XX impacted believe be in is than throughout order may greater remerchandising that

square weighted square traffic XXXX XX, and recaptured feet compared XXXX. tenant increased on performance and per quarter foot ended to portfolio sentiment to and center Average was sales of increased for show portfolio by XX XX March the our XX,XXX of XXXX for the during ended profitability. wide the quarter NOI Same XX, sales per X.X% feet within it to productivity signs over related improvement, foot. overall we square the in period. the $XXX sales March month ended portfolio brand for consistent and was During leasing ongoing bankruptcies level driven an first And the basis, XXXX, month this compared $XXX by tenant Retailer XXXX. part consolidated consolidated environment first retailers tenant XX,XXX for the of restructurings month XX, square maintained approximately XX the a March

Easter Outfitters in to and Tommy you the however, recap. handbag this of particular to outlet We brief to Eagle I Addidas, will three first Hilfiger, this centers. from balance strong Coach. includes to of that sales the performance year particularly strength impact the continuing a saw with apparel, turn last at Jim demonstrates For and include now tenants call We Noting, well a up months food is. consumers’ shop performance and through a Tanger are of Navy shift sheet this Old believe the was categories. results desire that this the performing April athletic, Examples over some our take financial American March X.X%. year,

Jim Williams

you, Tom. Thank

developments of center increase of income completed expansions and same XXXX. center closing. quarter, was share, in partially the first and FFO in harsh G&A XXXX snow decreased expected common the new and compared one an at the quarter to as Same year the X.X% percentage available as reduced shareholders unreimbursed First expense closures prior center and results. due $X.XX our our removal by which XXXX driven per quarter offset mentioned rents over was NOI Incremental winter previously certain XXXX from to lower centers by of greater to than conditions, primarily expenses X% store resulted

hours first the they snow XXXX Tanger hours of quarter the to storms, first were centers of XXX compared to XXX combined due During XXXX. during quarter closed

comp the and same the first conditions centers of NOI, center million million totaled the addition during traffic Lease storms affect the the center day of snow the fees, several are included on days during XXXX. that thereafter. $X.X sales first to portfolio and consolidated not for portfolio approximately quarter $X.X In closes and and and which termination closed, XXXX road in quarter

earnings which of quarters in the In both and of fee share and unconsolidated line, joint included from addition, was unconsolidated is ventures, in termination first equity XXXX. the our ventures XXXX joint $XX,XXX and lease our

sheet is Our balance strong.

was approximately credit, March portfolio XX, XXXX, Only XX% outstanding under of our of mortgages. footage in our XX% lines square exceeding As the consolidated not encumbered unsecured by of was $XXX quarter maintained times X approximately and at times unused capacity first or $XXX a approximately ratio end. coverage EBITDA net quarter million. substantial during was to interest X.X of We the debt

X% or X.X of of our exposure average and enterprise of floating XXXX. Our from value and our end outstanding XX, XX% interest total at as total end maturity of years The quarter X.X% debt for represents respectively. term weighted rate down XX% was average debt, rate year as March

maturities debt from lot significant reduced our XX increase no maturity completed until from April the borrowing by have of to spread extend and basis to million In of a years, We XX.X to credit $XXX agreements capacity rate to $XXX basis million points January, XXXX. LIBOR two the amendments points. interest we over

discussed, shareholder part return our value important Steve proposition. is As of an

marking This share basis During $XX common In have shares our to $XX dividend annualized authorization. our repurchase under XXth the $XX.XX April, remaining million our average quarter, consecutive the million. raised of $XXX we’ve per year share, approximately our we total XXX,XXX repurchased dividend. increased an price million consideration for X.X% we having by of approximately first of $X.XX per weighted share leaves on

company cumulatively. year XX% public dividend a it have We over raised our has and becoming last every years, grown three the since

We expected our dividend million more with exceed expect FFO to pay-out under FFO XXXX XX%. than an $XXX ratio by our in

Our dividend is well covered.

news our for no plan in have openings year. this We

XXXX shares approximately residual The common used and advantage market strength floating arise as us spending we maybe our the rate naturally our sheet of development debt as million project cycle $XX repurchase for the and will should opportunities of completion between to our that that have $XX of sheet deliver up generated allow balance million upon XXXX, conditions lease cash and/or growth million further and balance During exposure additional warrant. of of $XX capital turns of reduce take positive. cost, to expenditures internally funding

per guidance, down we X.X% square our updating same our are to expectations down for to reflects share XXXX. X.X% X%. our all range center year we between April. change closing $X.XX and representing share feet now expecting XX of by to our We're early expectation terms X% of assumption store between per the center our also web for $X.XX the $X.XX FFO and compared And of of adjusting prior and to or flat. for $X.XX share, per NOI In XX,XXX are compared be a of updated the NOI same to down The prior

increasing While It our feet, also original abrupt the these these and our six were all reflects XX,XXX anticipated. feet, between unexpected XXXX. square XXX,XXX projected be next in and than of compared in stores We quarter of our second during closing all the coming feet. projections. from capturing we already prior office XX,XXX currently one second XXX,XXX approximately are closings of this seven stores closings NOI our liquidation in decrease of level months prior space Toys“R”Us including square square based XX,XXX our guidance, Stores and year, up alleviative occurred million closures approximately square square feet. quarter, approximately XXX,XXX to to $X in of store the resulting earlier of closing of Combined back expectation store anticipate are we feet this with the And the on

we income spreads. harsh The may ahead, quarter with leases additional terms later believe it and of of and rate effected the the year. addition lease rent to anticipate look or variable potential this first months remainder In is less guidance adjustments, narrowing results we reduce prudent XX reflects winter, which as

issued our distinct Additional guidance details be our night. release in found can in we last

like intact. open While it first in we question. we it’s would and now for our to prudent the is long-term model expectations, centers with guidance align questions. can to I XXXX Operator, up confidence our believe take our current

Operator

[Operator first Yulico of Nicholas line Instructions] comes Your question the from from UBS.

is line open. now Your

Nicholas Yulico

just back I with wanted starting go West. to Nine

anticipated. earlier not this bad You was not into your guidance original into talked potential year? or about than outcome the are happening for these factored closures Why outcome factored

Steven Tanger

a We would with led October. they anticipated have close that And to tenant We quarter. until close. the conversations the West to were of open made with Nine of second to believe basically first the end stay they the decision

that anticipate early several we way could that. months the So closing, no was there possibly

Nicholas Yulico

now? process How giving creating just on I as you’re portfolio just them rather it dealing is going in then adjusting some more and you downside change that going do the it real-time shaping if a to guidance, about scenarios guidance? think How you is than forward up guess basis with --

Steven Tanger

current guidance view reflects feel We of that state today our the the of the industry.

expected to of We’ve a this days anticipated amount guidance feet from that to from XXX,XXX go visit the to the square as occupancy of obviously, XX.X%. XX% XX%, square annual store increased have every closures we’ll We also guidance feel range XXX,XXX or to And XXX,XXX forward. We is feet. reduced XX we our average appropriate.

Nicholas Yulico

the unique major guess it your assets? that? tenant I then Riverhead, XXX mean, of down specific amount of is number terms Is assets the year-over-year. What's in to a that was falling by lost portfolio? driving of basis occupancy And -- of issues out example. points, occupancy significant I

Steven Tanger

know area, space vacated Most of is due York of that some may one assets. being Riverhead bankruptcies. of you As the to Riverhead was in our marquee in New these the

in tenants I want Riverhead in space, we’re it’s to flagship property Fortunately mention being selective our into that might as example, and space. which is an the we the put which Max as the be Office And home will an new Barn consumers. this Sonoma presentation and our will store. furnishings Williams a Elm join West vacated, Elm now Pottery West by replaced to summer to very addition

selective. are we very So being

Some some of replacing them now bankrupt. of -- centers we are the other tenants gone also that

store backup points to XXX in occupancy, in the they will X% or we West also For get add we basis taking signed XXs. that instance occupancy July. And Elm be a one mid in about the will Jeffersonville, and

co-tenancy aggressively can new these impact stores refresh the So exciting process come as our back to our of opportunity see, we’re in you gives upgrading the more as and tenants. us high with properties

Operator

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

Your open. line is

Caitlin Burrows

investing you mentioned cash in is assets. guess of I of uses your one

in past. the potential any you’ve without wondering replacements do peers guys yours So to go have that this there what investment some at Is know just you point? expansions for opportunities that? through, the outlook have done department of I other store

Steven Tanger

expansions have assets. have no -- significant no of today, any of We we contemplated our

flow sheet constantly and balance BAAX. used. reviewing million substantial, generate, know. cash $XX selective cash deleveraging as will basis, certainly counter the us And two are our free remainder just dividend We after which between rating nationally last whatever be and report BBB+ of strategy. We on our of the our major executing will The which is that CapEx pretty strategy there. our raised our allocation year, be capital announced you is that year, free a repurchasing high the And we flow shares on maintain balance projects and we about our also and our credit allocated there

Caitlin Burrows

some need reset too of companies. And XX% that mall or high. make it most the still like occupancy of lower all in other to seem then some lower at the -- of lease your rates your are cost than occupancy is cost other I realized the cases

So just pool to willing be think than you with have to can further users the wondering that go will how or much of paying pay. they you afford either more

Steven Tanger

leases. X,XXX have We

for you of XX% the group. our So for every renewals. reflect renewal in the our occupancy year. expectation fortunately come lowest of for XX% our knowledge at Thank peer everybody only our is reminding cost them guidance XX% in to We to about out that our

is behalf been tenants. tenants. The in we’ve profitable market distribution a if the fortunately, now favor our is for some on there of very current So environment channel leverage

new on now But of through this good is highly And properties. extremely We and exciting are properties we’re getting occupied been into before. the through now. And maintained. putting that type we’ve situation high news right our tenants are the impact focusing well

reflected all replacement guidance. tenants our and the are in the tenants So new are all

Operator

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

Your line is open.

Todd Thomas

costs. on the cost relative could was around average tenant that. were up just a maybe around ratios occupancy that Just the was context can completed year-to-date. you provide follow the for Were or on the to above modifications question lease they you that if I that some occupancy case? average comment so curious portfolio far the not Maybe

Steven Tanger

modifications, tiers. Todd. and are by asset our renewals really spread is the lease by out concentration tenant no center, The geographically of across all There lease

So there it’s basis. is really conclusion, case-by-case no a

Todd Thomas

leasing activity -- took had a the last so remerchandising that I And the question and place year. about primarily

talked half of of $XX return status I about and the centers. in open about much dozen X% just Has million And spend is had that. how on an space that that paying rent? for of roughly of same store? the is You commenced was wondering all that and

Steven Tanger

All had some performing better, I now one of expected we Three them is two are re-merchandise remerchandising, the of five open. centers and as still are them are Jeffersonville, of of experiencing which which mentioned. or

be is or of replace open West the some working affected, to are tenants. in We the Hilton we’re bankrupt was adversely And And year. the that process adding tenants. now this Head, through was will which occupancy those which Elm, by other affected

Operator

from the Schmidt comes of of America. question from next Bank line Your Craig

Your line is open.

Craig Schmidt

I The include wonder Ascena? your completed, what does terms with tenure you’ve adjustments adjustments. that stands the rent of in work rent

Steven Tanger

reflected package they of have the renewals with XXXX, through numbers. Ascena first are completed quarter We our in these and

Craig Schmidt

of bring in? of some an to the terms spend bringing increased will in CapEx some of with Do them newer tenants. you think then that come And

Steven Tanger

with year average between the and forward and our for CapEx. combined put is lease in XX that The the budget CapEx up million and cost million line $XX the we $XX

anymore. are consistent not what years, the So we’ve past XX Craig, we’re basically spending we for done with

Operator

question from Michael from JPMorgan. next Mueller comes the Your line

open. is line Your

Michael Mueller

of Couple questions.

wondering Beach there? I properties, what's Myrtle drop on little had about all, just looking the year for going properties a First occupancy basis of provide of XXX was color the at since end. point one

Steven Tanger

of XXX The bring the of to feet by up Myrtle XX,XXX will addition popular which Carolina back for name which property is take where of a the Myrtle and Pottery, Beach going Beach the very to preparing it was. tenant regional occupancy is square

Michael Mueller

talk third comments, then released leases you the a of about -- your short-term leases a of you opening I And the short-term in XXXX that think about XXXX. in third

some color give place for you leases? the new rental rates to term compared was how can in the about curious, Just what short

Steven Tanger

short-term. We short-term term re-leased considerably up which the what have from has five were. the on the leases basically from is the years to been extended And market rents,

as working. keep this to So good is pretty that our our strategy highly is evidence properties occupied

XX will a market when between vibrant. today building the strategy with to we’ve short-term our these bridge keep and It’s properties that years, actually. for years employed think we leases We’re a turn many

standard it’s for practice So us.

Operator

from question from the Christy Citi. of Your next comes line McElroy

open. is line Your

Christy McElroy

just versus deals XX cash calculate we Just basis, data at a ’XX. On the Page a QX ’XX XX% months in on spreads the months ended it X% term looking the question, about QX decline follow-up on the decline the ended looks on XX. shorter like on XX an

like a Tom. talk while or and has your expect that Is happening getting out, what pointed business and more we rent you is It outstanding looks the historical bankruptcy mix, line of So can this forward? the cuts you the with averages about are should in percentage your part what’s deeper. going rent there been always relief and as looks like

Steven Tanger

related. Well, them are of some bankruptcy

We are reorganization. to they keep attempting while are open in stores

yes, subset. So fact want that a it’s as very a fact lease mall don’t the on to that I

have have been fewer XX,XXX than out of as already leases is in category, short-term we so in which quarter last There fourth in XX quarter We -- year. a of of leases that’s the about trend, released that have did we first transactions XX have. the executed we

Michael Bilerman

speaking. Bilerman Michael its Steven,

at offered or relative terms you greater the re-tenanted numbers. included from looking re-lease in How to in of Just stat Page than total. space the months a lease of XX much where out is the short-term ones then strip the XX then

feet million feet X.X we’re the XX the there up rolled trailing have Arguably cash lease the So XX in square that prior leases the XXXX, of XXX,XXX basis. months a were an into on as X.X% square of month on of number. example, some

go that’s those XX the in terms greater that that in stats been the months? of way being shown shown that some is than from some double So benefit counting these term there for are

Steven Tanger

want take Michael, understand know you question. your at it? we’ve if I don’t shot Jim, a really to

Michael Bilerman

of short-term X.X effectively greater million this element, leases, there then takes that longer-term to than have you temporary break now of you XX leasing you’re that the I in square The assumption were cuts saying included activity have leases are they account permanent. mean, a being way total going gone terms rent, break that the the going you back XXX everything, to disclosure you're XX some basis feet, out to Is and are and full being shows which that market from And rents out is that cash saying, months. And to what the enhanced element? market. that points. deeper some that getting because leases, so leases in leasing, which are by they’re down have number that arguably

Jim Williams

But if I that’s budget not commenced referred of of been we but have all how of those, so not on re-leased not yet, majority them they remember in most released, them, that Michael, commenced that these on, not these are to are we many. numbers. am a they spreads the the basis. And have -- sure

Michael Bilerman

you it that of GLA, what keep of in that these consistent if is on feet math? be this this shouldn’t is do X% of of under rolling which down the said terms the business, space part XXX,XXX the in of last the shouldn’t Is line, year and the you XX the this square months so X% all amount a it was going now deals, If is XXX,XXX your number? of consistent, your down square it’s of the temporary page, on this But business, not consistent permanent from as to in trailing releasing just X/XX/XXXX math thing just this part out always part year. XX% feet if as

Steven Tanger

Michal, a is you your said? greater question ago. Is is what regarding it year that why now was the differential than

Michael Bilerman

don’t offline… just why we No, follow

Operator

question of Jefferies. comes next line Tayo from Your the from Okusanya

open. is Your line

Tayo Okusanya

ones Just two me. from quick

is debt First the for of moving all, of because portfolio, there just your unconsolidated consolidated you quickly strategy venture XX% where that portfolio, fixed was curious towards the financing variable I assets versus the debt. joint about

much unconsolidated there? variable the So on side, so why

Steven Tanger

We would they discussions think have commence. traditionally consider putting when financing. is Most new, marks we that but to the we -- put rate our in centers term we when right they now data debt longer potentially term as And fixed those. stabilization are and some hit -- would open shorter and the a used mature there still hit when of variable about rate those JVs partners stage couple fairly are longer to maturity already with and are on term that mature

Tayo Okusanya

closures? second from what expectations question a provision could store of in expense talk updated the update about guidance. are bit Could that And then in to you regard little the and you What a just was, just and maybe additional guidance number perspective? light initial

Steven Tanger

We’re having repeating Would hearing trouble with you. mind you the question?

Tayo Okusanya

your maybe around in of light in updated you the bad So guidance I closures the just bad versus is guidance initially bankruptcies. had or store updated provisioning. What’s guidance number debt expense tenant your debt and guidance, was hoping discuss you additional could what

Steven Tanger

is your debt would necessary store be or of incorporate expense hasn’t been doesn’t rent bit. does which range little our And that a write-off, same into get X.X% of maybe usually Bad It maybe Its most X.X% straight-line revenues. NOI. material.

hit hard, particularly a an of the So that with square have we really cash certainly it footage it’s we raised but that expectation really we same. bit while haven't on unfortunately we a not XX,XXX, basis. back of getting been have that And additional make, built-in little

Operator

Your comes line from Evercore next Sakwa Steve ISI. of from question

now open. Your is line

Steve Sakwa

to at mentioned there I the I currently is guess up site opening was supply guess West going store Elm the that I you property. warehouse, closed on Web a Steve, clarification, the a that guess office store. in a just be Just West see And Elm I the

I moving? into prospects larger the a take guess correct, store. do maybe be West that So moving Elm And may to you if I that's backfill that would have they’re

Steven Tanger

not what in their Web know property. is shows. site Elm our West don’t I currently the Steve, existing

We’re space can going now. property, get I into for going further the them preparing you were the are details. Max close the And Office but they they into --

for check me you. on Let that

Operator

Khanal Samir Evercore. of next the Your line question from comes from

line Your is open.

Samir Khanal

FFO guess through points of I with walk the was you the There thinking about the part should what of the basis about in have and reduction incorporating? impact the decrease can $X.XX you XXX offsets midpoint. the that guidance. reduction us I are a great been mean we thought Jim, be I are what in at as would NOI.

Steven Tanger

rate you’re As release to we what you did term offsetting interest we on -- we I all press right. increase assumption fee those $XXX,XXX but think heard, know each and The the for tend wash. also increase expense

that offset in we You work got are it than some The year extra we have the and I bit same little a rent done that’s NOI. up centers the center GAAP non-center are last that quicker is think thought expansion, right on leasing thing increase we’ve will the pool and the because been talking the basis cash reflect throughout that as year. portfolio properties, in earlier another factor this lot rents. GAAP that those rent two about open your we’ll leasing into NOI, well But later a of it activity doesn’t

Samir Khanal

this And incorporating of of bucks, that at any in are terms buy you point?

Steven Tanger

of market down shares. our anticipate Sameer, do We consider some debt. As And to use expect to guidance warrant, buying portion back our as said that within conditions having $XX earlier, excess flow. cash we pay million we’ll we and of more

Samir Khanal

color probably get. but brokers or I that to you don't you portfolio. second to us point Is us idea is light how market. as trades any information retail an the of I maybe thing reviews here. know an all of cap we really give probably pricing rates provide your can transaction on And there you that little you the shifted subject headwinds? same from as to guess have the have with has of But outlook in get shifted bit is nothing there anything a can switching level I know perspective, the

sense get you a pricing? Just to color provide cap trying on of rates any can or

Steven Tanger

is can don't really rate And there have cap No, no color we us particular on to valuations introduced give give. broker we assets.

of the just puts public sale. were the Tanger I wish last I asset in past a reverse I assets the you. value private many the But no the today there that led This our We have an which does. value. on higher give enquiries, to have assets is We comparables qualified sale can is entertained the there color as no market market think market year. in for the more

Operator

question Your next Citi. McElroy from the Christy line comes from

Your line is open.

Michael Bilerman

grocery. father their since seeing happening share of XX box, big trying I over revert whole company business. think to history also wanted the am years retail history are a time is not not difficulty and started to weakness, will quality your go and I sense today to you And more is industry potentially certainly in what's why back believe different sales this happening edges? of really just commentary happening company. what's and that historical the the The its of mall relative happening you to evolved back Bilerman. mean last this understand trying the the to which within around productivity than Michael the some Steven, what's of understand the other you times the look lower in on what's is to changing and has higher about I malls, within impact that the the malls at fair the element there

Steven Tanger

go Office store. back are and we West And the Elm that outlet Steve's we working have Elm to our with Riverhead in Max. regard are existing West property not -- might to warehouse West if replace Michael, I new a question Elm, West do the replace to Elm. to Currently, there they but existing upsizing store just First to is

cycle We experienced only dotcom candidly better. to going market the stock feels on bubble time every was to downturn years only a XX happen part an during always economic XX, and feels yours, the XX, just was or there stay different, cycle. the bubble question. I crash we like a obviously before, XX, up the cycle, the in it’s during to With down ago bubble which regard every the and So like an of And it’s never wanted get close e-com of the get part loop the going tech know same Amazon. worse. happened after no of it’s to previous I it’s part of

the of that’s we country retail The is or as demolished. XX for with one hundred years. tracking better is not that We says, over competitor e-commerce my friendly it’s although over comfort probably have part friends been sales have of retail the

the of of regional industry stores, under-built. centers ICSC, million about type multiple category Our malls killer There department feet. country about feet. We in is, is XXX have don’t over according about outlet boxes, X to square thousand square is stores. only XX billion There level of

We less have And occupied. year to XX% than structure years XX the type been and a able end property why for that's that's to easily adaptable never trends. new we’ve

Michael. my answer, there It's just based my no is on instinct easy So experience.

of able north keep still We’re XX%. to occupancy

flat. is traffic Our

off would If facts our I and opposite. would sitting you read are traffic press off just the if the believe But be was be sales our everybody popular significantly, and home, significantly. the

transporter ball you lawyers looking question a my a go not to I we and But wish had three, me. years personal representations am crystal that So can’t a don’t. four you anything. point and feeling. future to look I answer. just or at you the That’s back, in asked personal just giving I but the two, corporate are It’s a I

Michael Bilerman

do step and think dividend. share shoppers you trying Private value? underperforming what on sheet, fixing doing the alternatives? stuff options? cap mid if about about that you for clearly keeping low the you step? guess Xs increasing there think today strategically over to I about floating capital world What implied the balance back been the do you And been of occupancy, look and side think doing the keep hand is point to which debt, to Do that price, maintain at a X. trading, think also you How come, repurchase as strategic right is has public and out next probably towards in significantly exploring the At drive about is time, well. interesting this shareholder if next has vibrant centers rate on the quite step you the stock rate Do program, space about at

Steven Tanger

our I capital We mentioned. as constantly allocation review strategy,

strategy investing repurchase and our with program presentation make stock assets to to balanced possible common pay executive down opportunistically best as debt, as consumer. strong a possible have our tenant We as want to in our the We assets.

it’s right think the I strategy.

we raise know. you our as In addition, may dividend,

strategy. And see change don’t it. current right that now any we with to comfortable reason we’re So

for development have planned XXXX. new no We

CapEx the $XX maybe grow we grow considerably I investments that flow this look, and next And free strategy. will and think constantly paying to year. allocation cash after may year review for continue previous million our capital

Michael Bilerman

more one seem look something a alter that at to doesn’t more and need companywide alternatives? look strategic or But at

Steven Tanger

we iXX if see to for credit went today. friendly we business happy wants since public to for a ago. we’re and any public reason get years to governance, talk we we shareholder as it someone us responsibility company don’t to anybody an But as I ever we’re talk and have have

Operator

to turn are presenters. further this audio over at the call no There the I’ll time. questions back

Steven Tanger

everybody thank in our want I to today for call. participating

As follow seeing NAREIT up in always, questions. And any available for we’re look everybody weeks. to in we a couple forward of

day So have bye a now. great and good

Operator

This concludes today's conference call.

now may disconnect. You