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Tanger Factory Outlet Centers (SKT)

Participants
Cyndi Holt VP of IR
Steven Tanger CEO
James Williams EVP & CFO
Christy McElroy Citigroup
Todd Thomas KeyBanc Capital Markets
Samir Khanal Evercore
Greg McGinniss Scotiabank
Michael Mueller JPMorgan
Vince Tibone Green Street Advisor
Craig Schimdt Bank of America
Michael Bilerman Citigroup
Douglas Eden ECM
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' Year End 2019 conference call. This morning, we issued our earnings release as well as our supplemental information package and investor presentation. This information is available on our Investor Relations website, investors.tangeroutlets.com.

Please note that during this conference call, some of management's comments will be forward-looking statements that are subject to numerous risks and uncertainties and actual results could differ materially from those projected. our detailed the and discussion to Commission and uncertainties. you a for of direct filings Securities with Exchange We these risks

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

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

will you the requeue question only for prepared we of many for follow-up call questions. management's for one questions. ask additional are ask and be Following everyone happy request to one time you If We as to open permits, possible as that allow questions. comments, your to

and the Financial will call Tanger, President Steven Executive Officer. and On Jim Vice Executive be Officer; Williams, Chief today Chief

ahead, over call Steven I turn will now the Tanger. Steve. Please to go

Steven Tanger

Good you morning. for And thank joining us.

the address timing the of Before results, fourth call our want to quarter. this into of we quarter get for XXXX our discussion I performance and year, outlook this earnings

have dividend we’re consecutive S&P after of and consecutive index. announced premise its are closed, The XX our extremely growth, credit long-term proud our the high-yield dividend index removed Friday risk for S&P market is this This years. and past from that increased being dividend to shares primary

the deleted their XX, threshold market Monday, the cap be outlook index, there and results date on February want from with measurement in below provide our be index heightened our Consequently, that our billion. our of their track for market we trading we to prior open December will as the with However, to funds of Since which $X.X expediently XXXX volume may XXXX. X. shares was of

our we in capping to portfolio of results. year execution, we a with leasing ended turning Now XX%, delivered fourth better strategic contributing solid succeeded consolidated exceeded the the our particularly year of strong occupancy goals, highly operating with quarter, to income. our same-center We guidance who where of expected tenants. desirable our key occupied our proud keeping than accomplishing net I'm of team, one in with leasing centers performance

several which consolidated we with square sequentially faced to the In back industry to basis XX and resulted many basis brand-wide ended portfolio the and that coming up year-over-year. related occupancy year Tanger similar with XXXX, recapturing in restructurings, space level experienced, of XXX year. up bankruptcies headwinds points we XXX,XXX this points particularly Even peers us, during feet

leasing has our and deliver, our Centers of compelling offer tenants. to a ongoing and team provide been able business Tanger both success shoppers supports our to The confidence in that

brick-and-mortar of distribution model retail evolve, continues are element stores that the critical are increasingly omni-channel discovering While successful retailers strategies. a to

halo a them. consumers physical effect often for goals priority in higher Driving are time and spend of dwell that and and sales and help produces with channels. connection online in combination additional stores locations brand retailers results achieve The physical much both

outlet name about Many value occupancy, adding As to our from XX%. continue to a solely focused result, interest online our core the had tenants we of brands expanding on committed are remains high-quality including distribution our previously retailers space stores. that and which are remain seeing channel in Brand low-cost and outlet increased from proposition, distribution. of benefit

such tenants stores as popular Tanger and and vibrant concepts. tenant Centers our including new to focused base, restaurant off-price various furniture are We diversifying decor on home further adding stores,

permanent existing traction gain to new tenants. potential testing and as pop-up long-term as the become tenants outlet Our business continue the that temporary efforts to strategy development generate have well and stores, and from interest

leasing our efforts marketing Tanger full of respectively, continue and quarter XXX shoppers highly our year, programs, result fourth Centers. a for and up As basis traffic centers enhanced XX and points, the focused in to as enjoyed the frequent favorable

I this a the XX% and retailer the XXth we our mentioned demonstrates leased, the commitment year space amount consider exceeded during consecutive which Tanger As of unwavering appeal business. is the earlier, to year testament you drive our ended we to of When achievement strong have This is at recaptured brand. XX% XXXX, relationships year end. our the

were an tenant NOI-weighted portfolio square prior For $XXX the were sales basis, per average trailing XX, up December the foot, foot, from for $XXX X%. they up months square consolidated the X% On XX ended year. per

X.X%. by the basis increased performance to sales tenant basis points NOI the Same-center XX year year declined for XX fourth compared prior points by quarter Same-center and periods. the for

the While reflect we which face XXXX. results significantly better than these our we year to challenges guidance, in faced will continue last and

leases XXX months, X.X XX million trailing feet. square totaling approximately the commenced, For

rental and X.X% average a straight-line X.X% rates blended commenced leases less increased for in basis basis cash a XXXX. Our on that on all

progress to high increased priority. a occupancy ahead, maintaining as pressure make through XXXX, spreads we a as anticipate we on Looking we continue

portfolio NOI, basis Kitchen average. which last XXX discussed quarter, paying about of the and rents were impact all of our fluid. Collection Maternity Forever stores the on to square some The As remain feet square while stores, situations above points of have January these Dressbarn is we in XXX,XXX Destination and XXXX known of recaptured already our related many XX and certain foot per same-center

strategic to season between the centers period the We key effort, marketing in a Another get to our to to is product shoppers our were highest. the and early initiatives on in shorter order marketing assortment traffic Christmas, and selling centers. based and engagement Thanksgiving customer concentrated when inventory focus which continues our drive

additional creating we’re experiential an extend reason shopping. shoppers to and of temporary in point, centers, highlighting that each experiences come our centers which We them visit. to have events encourage focused both social and the to also gives our on To investing element long-term at and

lightings than experiences the more shops, wine hosted includes which celebrations, some more. Overall, we tree holiday costume and and much XXXX, family events, XXX resulted black as contest, festivals, party In in Halloween events sip increase of average to X%. our an event traffic proven will of strategy shoppers draw XXXX. in to an important time and more component in than These marketing be events have continue periods comparable over

highly have know grow various make also We designed and a and segment XXXX. and We more it TangerClub our programs in continued segments develop personalized a shoppers new online priority digital engage with we this membership marketing to to approach. target in key are to engaged, our customer

of prior year. resulted more end the the XXXX Our XX% members having TangerClub of to approximately the efforts compared in at end

effectively all visits new shoppers, refine will marketing improved have value, and and understanding and on our These gaining the and conversion. see we focus we By more opportunity to right now people and technology. efforts where -- are driving areas better and existing successful we drawing XXXX, engagement a and ever-improving track the In are enhance record continue personalization our to have loyalty. to providing brand achieving Through innovation are data more we we we have and targeting results. sales with resources, the name shoppers, right

cognizant both While we and we of of initiatives, leasing facing. remain success our by the are encouraged headwinds we’re the marketing

space there have be I to later In departures could anticipate we known additional discussed, retailer back this coming addition year.

intent and overcome aggressive permanent XXXX, temporary of with as vacancies, as we XXXX Given target existing to achieve this a were and pop-up mix including known as the to in in new stores. as we well the success backdrop, be leasing and continue unknown tenants and will

add To tenant to or interesting offering. and mix. to and sell opportunities seeing to and our out-parcels some tenants upgrade diversify We're our high-volume food additional non-traditional to hotel, multifamily users retail lease

re-leasing updates And as look space working diligently the are to providing will While teams the our year take progresses. recaptured the forward across company. we time,

understandable at the While retail world, under while of annual the decline our all company's especially balance Tanger, increases traffic our stability of the of challenges disappointing our with in price and both occupancy - and given today’s and sheet, us free cash sales. - strong is to flow, high share the

sales vacancies existing remains list Despite of outlet a to both The of see efforts. and - and lease to - continuing closures, well-publicized tenants. part the store important to distribution inexpensive channel many we're relatively a new continuing retailers highly

success well-conceived Preleasing is outlet our there on markets. in expectations schedule. preleasing and shows Nashville, initial good Tennessee, meeting demand projects Our for strong is a at

Officer. We thorough search a are Operating to continuing process Chief identify new President and a

to the time. process ever-changing this to As the right taking find help navigate expected, effectively landscape is person retail

we to update - are We’ll on the focused now appropriate at are person time. you We getting happy right finding in the someone than be more quickly. on

a Finally, among of to Directors such annualized increased Since in our each May dividend cash basis equity share. XX per a dividend paid point putting to increase per share or of a $X.XX becoming company has XXXX, approved quarter milestone. small company each our has have our year, us in has and REITs a group public dividend $X.XX achieved a the very Board

proud We’re of record. all very this

I'd again retail the like creativity work, the their thank team Tanger hard evolving dedication landscape. for navigating and and to

outperformance their direct year Our last a result is efforts. of

in move confident will these our team continue we into I'm XXXX, As demonstrate to qualities.

regarding now to recap brief some Jim financial balance results, guidance. our a like I'd With take sheet provide the details to turn that, to call and you our over through XXXX

James Williams

sold impact a Thank share was period shareholders of March in current per assets, XXXX. quarter of XXXX. from in compared you, which $X.XX Steve. the share $X.XX to common includes fourth per to were available Fourth The four per quarter AFFO share dilutive year $X.XX

For dilutive $X.XX was the per prior per $X.XX results the Full full sold include XXXX, the year. year share compared impact from an in $X.XX year AFFO to assets. share

to basis year full and quarter, And portfolio quarter, for XX compared by fourth closures. the same-center points. was same-center NOI year, lease basis XX the consolidated bankruptcies, prior for the driven the store down NOI In points primarily decreased modifications tenant

guidance, higher our from outperformance percentage as primarily rents season. These with winter in a expenses sales mild results to along lower leasing and a exceeded result of efforts, increased due our

position. our maintain to continue We strong financial

We have our XXXX and weighted-average a consolidated in maturities December X.X% low no portfolio until debt rate. interest significant

XX, approximately December consolidated by XX% portfolio of in the encumbered not our square mortgages. As of was footage

were $XXX credit capacity. of million with of undrawn lines unsecured Our

ratio the was approximately months. times, trailing X.X consolidated substantial the XX We times coverage maintained a net interest of X.X for year debt-to-EBITDA for and

Our X% term X.X outstanding exposure debt floating total and represented the including average less rate than years. maturity, options, extension of was to

significant and reduced strength sheet we cash The continue payment to we our by provides of debt outstanding generate $XXX consolidated million. our XXXX, free our after stability and of In us dividend. flow with flexibility balance

At to remain and in to our in dividend will strategy. Nashville cash cash in this disciplined our year. internally generated our our development new we fund reinvest raise assets, and In utilize on hand this allocation flow we free capital plan XXXX, our time, later

or filings Jeffersonville, the by re-merchandise center, efforts proactively restructurings, perspective took additional it a non-cash in store our provide continued closures from to unexpected Let Ohio, bankruptcy be XXXX. Despite where we in me has brand-wide now impacted some center on to including vacancies anticipated impairment.

current its asset it on current anticipate the for challenging these vacancies. we outlook down Based to wrote estimated our fair Therefore, to value. center, recover that will the we be

for outlook and our assumptions guidance of morning will XXXX, FFO we and includes terms $X.XX. issued bridge XXXX FFO estimate $X.XX key In we The results. release a between to per that our this be share

of recaptured As is earlier, approximately Steve expected midpoint half related our the have already decline mentioned situations to NOI at the the space. we same-center where

for the that this primarily remaining to situations a is assumption unable few to potential are discuss we Our related at unresolved closures point.

approximately recorded a significant Jeffersonville, same-center reduce basis impairment NOI that points. expect by where we will We XX

tenants. we will have do not assumptions fiscal and we Lease reached termination on specific until with our depend into tenant incorporate agreements fees guidance outcomes,

are We year. to outperform of our again our continuing XXXX, this committed team accomplishments work proud to and in and is

like first for Operator, questions. now question. can our take it up to I’d open we

Operator

of first line the Instructions] from McElroy question [Operator Christy Citigroup. Your with comes

You may ask question. your

Christy McElroy

could And recognize Street I their that help may I’m is you everyone. if this Thank it's in conversations with facilitate week? any sale you on you. how plan morning, light share had to guidance, an not Good shed State trade? a Hi. buyback they wondering to on some option have effectuate while

Steven Tanger

morning, Thanks for Good getting Christy. up early. so

Christy McElroy

You’re welcome.

Steven Tanger

all, to shareholders, we status. our ensure our get appropriate we large and representations that cooperate maintain of of with all First REIT

and the scenarios looked position at have regard at advisers, with different State our with opportunities Street. to many We

sheet. decided our with to balance continue the and And to business our leverage change just continue we’ve our execute profile strategy not now, to right - of

the reacts. itself. of we’re So anxious will it as take to are how And as market see care you

Christy McElroy

knowns? related your XXXX piece. there’s in want in occupancy renewal rent Okay. little And of the of XXX piece guidance, XXX that to all-in XXX just to is is and to occupancy of obviously, just a an the XX% the I XX%, understand bit, including that just regard to number, the the including Or guidance unknowns? terms to then

to rents. regard those in re-leasing a then that comment XXX the spreads, I above-market And knowns, think made you were of

for what’s just are handle spreads? So you a what get number? occupancy re-leasing And on, to assuming trying in the I’m cash

James Williams

guidance Christy. all-in. XX, for some spreads, the made, With Hi, rent spreads anticipate include Jim. that This today rent first of In that That the the your do on XX to the take question. store both would closings. we’ve occupancy regard further I’ll and we XXXX. our given is space point yes, captured is you that anticipated to pressure

Christy McElroy

Can you pressure I mean, of re-leased already. quantify spreads? that rent the you’ve I on space know some

You expirations talked what spreads? assumes about that released range XX% guidance for some you for pressure that give of on the Can year-to-date. same-store sense us rent

Steven Tanger

will point this for spreads the year. is it's still our for really impacted. And rent The be don't XXXX really because how in spreads early. the year, guidance break I want rent be the spreads, - at guidance to included We’ll same-center in out our

the We'd include what might our of best end of the But our you does spreads progresses. guidance be guess happy today, to January as as year the be. update as

Christy McElroy

Okay. you. Thank

Operator

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

your question. ask may You

Todd Thomas

Hi, high-yield the Aristocrats from Steve, dividend on I the just wanted morning. thanks. to deletion Good follow-up index.

will reason the this And morning. earnings assess mentioned this for release be was I’m just do what of that announcement You impact curious, announcement? the the potential the you

Steven Tanger

announcement did results earnings Todd. the from on the any decided between S&P call reporting We to we That’s night schedule why morning, our not and Good morning. guidance XXXX. delay this want and our Friday

to be the market shares traded probably market reacts the we This know. market the Candidly, have is an to as of you We that I of as as to mentioned before, week next will don’t anxious doesn’t no days. number see in unprecedented event. XX know, the are. idea the how And reaction we’re

Todd Thomas

guidance you curious, can XXXX Okay. increase? rationale just for on with the just a And XX%, the shed I’m I'm light outlook some than comment I FFO little dividend around increase? dividend then, can if down more the guess, the you on despite the curious

Steven Tanger

Well, balance dividend our in generating a million $X dividend me sheet, We XXXX. and less free all. $X.XX free a have it - put maintained a than strong let generate and again anticipate first and always significant strong well-covered in perspective, The have of requires increase cash cash flow. flow maintain of we

depend increase important the XXth our it's thought Board the dividend stakeholders - on continue So that our was carefully for about to decided and for that to it. it year

Todd Thomas

Okay. Thank you.

Operator

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

may your question. You ask

Samir Khanal

Good morning, everybody.

of Jim, I much that Steve point? the additional unknowns guidance this sort into you mean, of forecasting So to or you’re cushion already baked I sort of you of it’s XXX,XXX at do closures. of how versus of sort guess, capture the how that know, pending is much

James Williams

clarity we’re but get more are it, goes is Samir, to not point of happy related the - - to as that unresolved primarily most a of portion all that few And and now issues, but some this the issues those right through. that. discuss a at unable of big year to some

Samir Khanal

same-store at potential the XXXX. that there sort year full in could in additional if midyear, out or my could midyear you Is And as comes guide feet to X.X%, I guess, are you? a you XXX,XXX look thinking Because assuming I sort being of then, are for NOI when closure drag that - of square your down it’s When follow-up. is Okay. XXXX? be back that be assuming

the trying So of to just that. get timing

James Williams

we have we Samir, are than unknown, I now, it’s to the But of and go we’ll said plays second think. first - really the through out of in the some half But throughout that issues it’s There’s half unresolved year. just how year, as the see year. right so the more the probably the year as

Samir Khanal

Thanks. Okay.

Operator

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

ask question. may You your

Greg McGinniss

any on is Hey. morning, provide unresolved update Or of the expectations everyone. Good from unresolved Forever you Is how that of And closures? that piece? there part is that can that maybe bankruptcy? possibly much closures that XX

Steven Tanger

morning. Good

or Forever their XX been these to of have and goes to We we’ll become guidance. our you. update XX count to, market unfold unknown estimate on we It guidance be happy the give quite - may time. is best the unknown expectation with known, as and impact for some what and the wanted our in to We’re our cautious year be our talking store when for results - the by, Forever

even of you in sure I’m As XX fluid. know, as last morning this Forever night or press, the situation the remains

XX year. the we’ve So had X our closed of the of end as of stores

store it’s XX,XXX feet Our different portfolios, significantly footprint about with per smaller other at than square but unknown. Forever Forever XX stores still XX is in

Greg McGinniss

two last think call the you the closures. I so anticipated quarter’s closures that in mentioned was And

have So expectations? kind that of is changed is already two number that that in of just terms closed? Or the

James Williams

two Greg, and I were said Jim. it’s Yes. earlier. stores we to the that Those - expected two - I stores mentioned closed had close, the that

Greg McGinniss

Okay. Thank you.

Operator

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

You may question. ask your

Michael Mueller

cuts significant there budgeting that that footage you beyond lose? rent you're the Are above Hi. square could assumed and

Steven Tanger

Michael. morning, Good

includes to conservatively, - Our same-center for issues. to and guidance for XXXX. got guidance all of adjustments our hope we closures, rents. Everything that our how store NOI those guidance We includes that’s

I - just as to self-serving And I comment. want a make

to representatives, year added guidance of performance our Our new significantly, exceeded we’ve last of by tenants. are types additional broader was leasing a we spectrum talking and

new are year we purchased replaced hope poorly now going merchandised And that to tenants new centers on. now by on business those the leasing some So our our being add tenants by and exciting to is the space of private by was goes overleveraged some out poorly of exciting funds tenants. our as tenants and vacant that focus returned equity were that managed,

Michael Mueller

that re-lease on? property, see you making Jeffersonville you're taking of are what to Got it. so that harder impairment And that are attributes the the the center it

James Williams

in It's the Jeffersonville, destination tourist environment. markets either Jim. a - - centers - There's our it's MSA. competitive is with been and in or between been we outside little of two the of actually one shift of outside sits that's bottom this portfolio. a top have that's The few a the that in Mike, center a it's a

take it the recover to - those with gets challenged center kind vacancies, vacancies. time, it's hit does a - recover that when get and of to So bit little of these a lot

Steven Tanger

just to And though in for decided by. NOI have that, in is this Jeffersonville even goes update asset might obviously, non-core guidance. I us, And asset say utmost the our as we transparency, the year a we'll include same-center performance that

Michael Mueller

Got it.

Thank Okay. you.

Operator

of question Tibone Green with comes from line Street the Your Vince Advisor. next

your may ask You question.

Vince Tibone

Hi, good morning.

more You your was could mentioned center, I your the comes share of from next rent hoping bringing restaurant into today percentage see over that so concepts what you where restaurants? And few years? going could you

Steven Tanger

Right of different clarify. types me now, well, let restaurants,

- have sitdown adds more, and which also distillery, friendly, have added restaurants Lobster We to a also priced additional properties. like little fun it's a we've tablecloth, Red and and do quite up urban very opened Creek life food We our restaurants. serves interesting very Smith called ancillary moderately few a many white tasting few family Starbucks, we and

all several on with to outparcels talking centers. talking our types type different we and to to working we're our users. go fresh are the food on So outparcels, different friendly - family of Also of family restaurants near

Vince Tibone

it. Got

vacant of these opportunities way? the backfill really outparcels So take restaurants in a be these some to more able in and newly densifying would or the any of on space centers the or of

Steven Tanger

people the centers space. take working and the come existing in We're with to to outparcel both. think I to

Vince Tibone

temporary on Got it. one for Thank tenants. you. more And then me

that typical to the are lower leasing being included per that sense generally Or temporary they of foot. what of the lot rent in Are trying length short wouldn't those leases? where those spreads? to square threshold? too likely get deals a they I'm So is are those hit a

James Williams

XX their include the from or Temporary have of a months three tenants are our No. And anywhere do us. be that a term terms We less could months to year. leases in with tenants temporary rent spreads. not

Vince Tibone

be are they portfolio occupancy total level, included just it. Got But in that clear? to

James Williams

they Yes, Yes. are.

Vince Tibone

us arrangement sense rent that - how where this you shorter any sort can and higher of there see you that many year? are do of is tenants now, give going And on

Steven Tanger

of and maybe basis so elevated XXX year little X% probably a this have tenants, and before. between a X.X% We probably year, close pop-up temporary from points group to

Vince Tibone

basis, And that's on just a footage square clarify? to

Steven Tanger

I'm sorry, I didn't hear you.

Vince Tibone

I basis, basis those you is just - numbers square-footage a rent that that or the said cited?

Steven Tanger

square-footage a On basis.

Vince Tibone

much. Thank Perfect. so you

Operator

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

may your You question. ask

Craig Schimdt

you. Thank

amount have in assuming allowances leased, that's I'm of an how we a the that needed Do should increase Given be space you to and expect increase? might CapEx. going much tenant sense to of

Steven Tanger

the in $XX - about Craig, a that's year, our of in million, foot. is last and somewhere guidance $XX our our tenant to between $XX guidance. comparable basic million or And we amount allowance

Craig Schimdt

at Okay. going hitting 'XX look you're do And then, the of your sort 'XX, to think store you extend to accelerated Does and in your tenant longer these when - how exposure, much portfolio? be you beyond? it closings

Steven Tanger

outside tell Greg, businesses. how would control. And finance I channel. and their industry, regardless are, of impact wish merchandise the the I people our that retail our stores These could would their of issues of you issues people all obviously, they're distribution

We hard tenants. our with work

group that and sales group tenants combined, execute and have We a group to structure have with drive to to exclusive we a with their try work and we programs them. - and our help from unique and leasing works marketing to marketing

monitor that their are average no increasing different try there But improve lot answer our is hard and traffic. Craig. tenants we portfolio to that, below But sales a work do by of for to

Craig Schimdt

the Okay. And just worked retailers into base tenant off-price introduction your how of out? has

Steven Tanger

in It's would T.J. Foley, friction between and if to ago, several Alabama, names the Maxx, off-price other HomeGoods, concept there have fine that and be Marshalls, X off-price there retailers seamless. some tested in no was brand We the of been We that retailers. are and sold store, friction. years of type see any

them with introducing working we're more success, stores. about that on based So

Craig Schimdt

Okay. Thank you.

Operator

We a Citigroup. Instructions] follow-up from McElroy Christy question have with [Operator

your may ask question. You

Michael Bilerman

square the situations, the a extra what understand that guidance? the the that relative Steve, to you're coming your footage with? specific I have but during And about It's Bilerman and Christy. impacting XXX,XXX sense that cadence with here you same-store feet year square can't Michael negotiating out do is you of expect you on talk

Steven Tanger

is the Good could since is the this months in just be resolved estimate. as X year. it guess will my best the put situations Well, morning, Michael. we - our unknown, We last of months And X first impact into these think obviously, guidance. that we have best the

Michael Bilerman

also Christy a Okay. had question.

Christy McElroy

Yes.

had I follow-up. Sorry, a

with CapEx the Just is you about assumed, your in upward higher talked and XXXX. that decline, to obviously, which your lower XXXX that occupancy the in on income -- guidance payout all pressure FAD ratio, versus due causes

XXXX? that you flow What is free your of about your does think estimation change after And how dividend cash putting for work? capital as allocation priorities to capital

Steven Tanger

We raise anticipate Nashville, flow we dividend have cash greater year new co-tenancy, we million. free with internally cash and our all around our shopping start to feel to We after upgrade dividend, in the $XX continuing - development have and of centers of of our this generating payment flow. anticipate our

million And on we of $XX have cash hand.

our anticipate and leverage cash without our we fund profile. changing the the capital hand So in flow that needs cash will adequate to XXXX on be

Christy McElroy

regarding potentially what made be earlier a you proceeds and from land uses, to any comment food selling could multifamily And hotel, that?

Steven Tanger

shoppers and multifamily, are do significant. a these sold. with in these they diligence various to They more due different in eight categories complete think and the such get assets that time. surrounding types and food, of the area uses uses fitness, traffic and seven we take discussions different quite center while But this or And we're will longer dwell to as and not of add

Michael Bilerman

question last one from me. Guys,

reduced few come deals. and on find dramatically strategies those tenants last leases then rents, of the them to able at the a short of duration number years full-term leases putting for be hopefully, was up, market to One as

for were marked much guess, footage, Can share same-store, acting you that as comes how that offset in to up back Is I guidance leases at coming XX%, all? this positive that down XX%, are at least embedded previously what's market? square the year for to a

Steven Tanger

you're discussing there back of significant not. impact, was a bounce If

to years, X them We keep and been a of that leases successful X the extending the extending term have and And short-term extending for that successful term to were leases them we out robust find longer the and end the of more. strategy previously. we X in was less the fewer, short-term We've much tenant. until a some able it occupancy came of had to

Michael Bilerman

you. Okay. Thank

Operator

[Operator Instructions] McGinniss We have Greg a with follow-up from Scotiabank. question

ask may question You your

Greg McGinniss

Hey, morning, again. good

just doing some improvement, from the better? average tenant actually regarding which continues show if falling tenants which out, sales, sales modest to I'm weaker trying or if Just to year-over-year that's understand are increases

that kind it is once to next of are assume assuming, to sales no So Dressbarn - going in longer quarter? tenant fair is the include no increase average included

Steven Tanger

think to assume. that's I fair

Greg McGinniss

there tenants any is what the so And the Apple had have is tenants broad-based Tesla the it or growth, to for sales that in more or is is similar you tenant out the there lifting, a - is certain malls? doing of heavy helping

Steven Tanger

year, came the the this XXXX square foot. do, it of about or want Fortunately, the them, of have back unfortunately, had impacted by Tesla per beginning our in end Apple. have If I that people $X - And sales excluded which per don't clear, we we last don't included square per are Greg, we some stores foot sales just square year to would be all at the of foot.

the and in it tenant is sales, will also our we've base broad-based traffic. increase it's are tenants increase in we have. - broad-based also And a - volume in comparable that a lower those But numbers. across we increased the and And

Greg McGinniss

Steve. Thanks,

Operator

[Operator from Eden comes the with line ECM. of Instructions] Your next Douglas question

question. your ask may You

Douglas Eden

Can morning. you hear okay? me Good

Steven Tanger

can hear We fine. you just

Douglas Eden

Good.

at depressed even levels the the and you ratio shares leverage shorts? and repurchase stock to squeeze large the these possibly increasing short of interest to company, have acknowledged considered the strong Given start sheet somewhat the balance in

Steven Tanger

that stock. We execute purchasing concluded could of view, company not, We have, back in of back the with different buy the plan. we enough our have business to the stock some impact. advisers, We've our it's which meaningful looked at interest best included various a in continue to our scenarios,

a the the that portfolio. market maintain not the balance strong results. equity business shrink and capitalization. And to that our with will strategy And to to the strategy our term. provide shrink It's We not It's liquidity we best our our is it optionality long strategy have sheet. think execute plan

Douglas Eden

Thank you.

Operator

further this we All don't on queue. any presenters, right. have At time, questions

Steven Tanger

Well, this everybody, much, thank you joining for very us morning. Okay.

follow-up any questions again. we'd now. after happy the be have Have great directly. you If a Bye day. call, And respond thanks to

Operator

that Thank you concludes all today's you. And Thank conference. for participating.

may You now disconnect.