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Tanger Factory Outlet Centers (SKT)

Participants
Cyndi Holt VP, IR
Steven Tanger CEO
Stephen Yalof President and COO
Jim Williams EVP and CFO
Christy McElroy Citi
Todd Thomas KeyBanc
Greg McGinniss Scotiabank
Samir Khanal Evercore
Craig Schmidt Bank of America
Vince Tibone Green Street Advisors
Mike Mueller JP Morgan
Michael Bilerman Citi
Call transcript
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Operator

Good morning and welcome to the Tanger Factory Outlet Centers First Quarter 2020 Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Cyndi Holt, Vice President of Investor Relations. ahead. go Please

Cyndi Holt

Yesterday is and and This investors.tangeroutlets.com. the Vice of available our Investor conference President Factory release our our Good well on presentation. as would Cyndi This like Relations, as call. XXXX quarter I Centers' information to website, we to Investor issued Outlet earnings package morning. supplemental first Holt, evening, investor welcome Relations Tanger is you information

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

also adjusted financial by non-GAAP these supplemental call, Reconciliations During release included core measures funds operations, in will and and the our Regulation earnings non-GAAP SEC to GAAP same most our or we income EBITDA. are defined FFO, operating from information. directly measures FFO, including in comparable G, the financial of measures net as center discuss

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

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

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

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

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

Steven Tanger

us. Good joining And thank you for morning.

are entire pandemic. employees, and the the want to of customers I of tenants, times. during Tanger everyone's our health these since wellbeing our every the have decision good sincere The the we wishes safety of and best team, made for focus behalf of unprecedented convey On start

will impact position, of COVID-XX first of On liquidity update results tenants, and process the fortify to to provide work our support call, Also, employees, our reopening. taken an and our we on quarter facilitate have today's to provide actions on business. to will the we stores with we our our successfully discuss the ongoing

of approximately portfolio of As the are in XX% consolidated today, open. our stores

As reopenings seeing shoppers increase, return. we are

related the to Prior would and have stay-at-home and of anticipated start of the emergence we its XXXX impact COVID-XX restrictions, challenges.

our expectations. However, January and performed better than February

expected lease income and on year-end along to occupancy we operating restructurings, with As recaptured primarily and modifications. declines we discussed net call, bankruptcies our due space select the brand-wide from

portfolio. tenants mid-March, in all classification Beginning variable on closings immediate our non-essential orders led impact of stores virtually These all closing as these across rents. the of therefore an almost had sales tenant stay-at-home on and and pressure our of to put

Our NOI quarter same was down center in first the X.X%.

both the and anticipated a previously occupancy portfolio ending from consolidated XX.X% year-ago period communicated, occupancy. sequentially declined quarter As and at our

overall center the for sales some were February tenant X.X% tenant the down same increased foot, XX trailing that was our consolidated months to and basis square XX, Prior average trend trailing and performance portfolio perspective, a per cash during the the sales XX closures, and respectively. positive. provide leases ending were mandates rates for $XXX X.X% the and Additionally, X%. months, the store commenced on sales To rental portfolio straight-line stay-at-home for

for reflect XX that the $XXX consolidated These mid-March. trailing portfolio overall tenant sales the foot, in closures sales of were for the from the ended year. prior XXst, portfolio. center the basis months XX March tenant the results down decreased square began per X% average Same points For impact performance

X, support to and of the destinations, shopping in result in open. order were deemed a operations the tenants Stores as lowest and the portfolio in pandemic. gross Our our represented X, centers April open-air by closing the at in X% stores April base centers X% and all primarily of of mid-March open consolidated of our XX restrictions. are have in under terms were of began who And they leasable rent. annualized on point stayed centers area essential closed terms never At

include completely, mandates for or when in percentages mandates. in as respectively, As and curbside used jurisdictions in had pickup XX% governmental is lifted It where be of of maximum XX%, portfolio by yesterday, XX% some stores remains only eased open located. lifted XX% or that are These will or restricted had unclear totals are eased where centers store these locations. capacity improved Tanger’s mandates additional consolidated or to

the it be in lifted within or pace open eased and what stores premature update have the the to percentage to on timing While an allowed to have openings, been and to Once ongoing we I provide of we to-date. of want week. is speculate have mid-single-digit mandates a seen experienced on have range reopen, been stores

anticipate Carolina, retailers In subsequent has the been forward, on week, the particularly are have the after longest, XX% open reopening percentage stores we the weeks,, going average. teens Over open centers is stores establish state to approximately protocols. South as that national three which high open. the where more of the now opening climbed have to We five

we are retailers. our perspective, fully prepared From to support Tanger a

uncertainty any store of furlough closures, During employees. period we did not this or and terminate

that quickly. ready pick we have and is talented up experienced to team again So, a

implement working resume closely they our new and as are operations. safety We their protocols tenants with

ongoing currently frequently do to across commitment most of measures our areas. We in are reinforces focuses CDC closing applicable is an our today public safety for on outside a social of areas, high-touch feet providing providing measures. their measures and customers These surface queue we include that assess distancing the portfolio other cleaning closely health new children's that stores, can also recommended to monitoring six signage The and play thing important demonstrate guidelines to consistent experience basis. these on

loyal shoppers. dedicated our employees for to hard working are safe We create and a environment our

to close of the formulated that to we began, anticipated strategy facing control for goal our to of non-essential Deferred take tenants We situation of mandates be May sufficient businesses would time. operations practically will of reserving all proactive to of as possible. January February the we a be believe our turn, agreements. of their providing all the time this as reopenings monetize late in approach, store and we closures As term, way. to lease inventory. in period consolidated we are a under ultimately we reopen all and XXX% soon rents while option tenants short in April rights March, in and be in them the with portfolio store offered the of in preserve to these rebuild To the prepared our and would defer what most end, capital payable that With then tenants to allowed XXXX, rent helping efficient facilitating

approach we impact cash centers. viability flow, our short-term tenants vibrant, focused our highly of this has a the occupied on on While are long-term certainly and maintaining

the packs and have our Red locations. blood for I volunteers X,XXX community one our hours our our our am five have crisis, in responders a food in first to a second on National less the we this partnership partnerships hosted Throughout centers. efforts. organizations of of Through we proud as distributed the Guard than harvest, of partner. from many with properties over like taken we just with Through Cross, available frontline have steps made drives relief centers

balance Tanger, there's core and serving well. is additional XXXX group, a note clarity. it in since the has we we feel peer position strength taken prudent until provide allow this our will navigate are period tenet strongest additional feel entered We we one sheet discipline us that and is sheets of confident Balance us Jim but liquidity steps been long have successfully details, important uncertainty. greater this that should our that to with to of of

dividend pay has of our part Board we future and of distributions minimum requirements The as Directors Board temporarily which May Note distribution satisfy rate, approach, to quarterly we January, the to scheduled continue additional liquidity. a As in will today on evaluate should decided the flexibility that the dividend declared intend to distributions for that know basis. future taxable provide what this on dividend year. on to suspend XXth, based we

crucial as and reemerge opportunities pursue the solid navigate to might with strength to balance We is a potential result times to arise, this of a believe, these that challenging necessary sheet crisis.

the store As of we ahead, impact the pandemic difficult look and rent very to cautious of impact closures, near duration endure forecast. In is behavior to the and ultimate the we deferrals. continue consumer term,

discussed now us give economic over retailers our excess The strategy temporary need they I cycles people times, regarding and and fundamental we true our and like principle optimism. to help that portfolio than bargain, have this, popup believe new opportunity many a inventory. Also, stores current time shown monetize permanent is their the good past and in ever. XX more during bargain. years, holds today like near-term our However, tough a We in

important, the distribution moment could anyone in current hoped, conviction The it time, situation Most is will steadfast. pass. that our longer a channel than in persisted albeit remains have has for one outlet but

not what outlets the arise will that While persist. exactly this, provide from we know Tanger will that proposition value do changes fundamental we long-term confident are

we other to tenants, of low-cost an forms attractive with provide For channel compared occupancy profitable our distribution. a

seeking we want. will For prices shoppers, they're the brands that to at the provide they our continue

over hard have I our such and other While through been team a our to as other shocks system out the this successfully on lifetimes, country crisis work, team come Tanger entire dedication to the years and stronger have thank their would that for like there sincerely has navigated not the been management seasoned has in the several this end. resolve.

tenant felt leasing, the already welcome Tanger as Steve the our XX to brands business our vision Steve proven a begin that and fruitful. has collection extensive rent business the reimagine organization experience, Yalof develop he Operating for expense biggest delighted helped forward world's and We're most our leading has recently And has both years Chief team valuable we landlords President and Steve's on our month Officer. estate the landlord ago, GAP, focus our our Simon's Lauren, with His and our team's throughout impact Ralph we real management. as retail and on side, brand. and working future over in efforts and as to his Division. leadership look properties joining Since has been new for Outlet Premium has working joined

the over turn to call pleased very to now Steve. I'm

Stephen Yalof

you, Steve. Thank

First, be our unprecedented new In implementing new, here. our I'm permanent, three and managing key many stores. role, initiatives: our rent to for with effort focusing ensure rent the and loyal Tanger and the their program; collections, shopping shoppers; our This currently time is experience providing deferment on certainly and I’m an around fun joining is second, to third, excited they be organizing manage organized, leasing team. strategy short-term while developing, my store the retail fill support and that reopenings leading popup and to and vacant partners, to safe, interesting stores

portfolio, rent of receipts represented interest-free XXX% XXXX. payable respect committed the in we January mutually lower our of option late and to consolidated short-term we expect over defer of towards and deferral billed May. long-term the to And proactively April the Due working achieving outcome. to tenants with approximately March, May and February have our in XX% and amount all rent, With to April program, rent deferral collections. a of retailer and prioritized the the we’re partners In that to we be offered collections in beneficial our program,

when avoid as Our to are designed proactive stores are quickly potential lifted. restrictions while reopening store and deferral closed defaults, is possible facilitate as approach

must Our tenants, not and our deferral if agree even lease open. leases rights is remedies, to rent payment we paid will or not Should that a with tenant we a appropriate. pursue schedule standard as specify be

teams equipped, safety marketing currently efforts our assisting work, at centers are approved and loyal resourced ensuring the management and are to property we welcome centers To-date, of best-in-class half protocol over welcoming our just execute geographies. reopening and shoppers. and are retailer have staffed mandates are hard our in our lifted back as the tenants that partners Our that shoppers and jurisdictions appropriate in

other shopper-friendly on as to sale find channel outlet names have distribution in destination the best a channels. clear to is for brands Tanger and been widely Therefore, everyday outlets traditionally place the open-air that were environment. recognized for excess Lastly, the inventory natural brand intended looking

and is exciting at clear team filling inventory, on excess stores new aimed retailers customers. tenants or with to channel acquire leasing short-term to and stores vacant Our focused both, looking popup new permanent,

cost the our by While the it these on near provide paying initial and encouraged premature to distribution is the we're details term. tenants. prospect tenancy lowest adding rent our for and centers new outlets in the reception channels efforts, Tanger brands exciting remain of to

turn our sheet financial brief recap. to balance provide like now the call and you through would over I take to to a Jim results

Jim Williams

Steve. you, Thank

to net impacted per gain Foxwoods year's in quarter, prior loss to results year share, of per $X.XX the prior on $X.XX outlet from non-cash center, net by the centers. shareholders benefited common related sale share of charge was impairment four For $X.XX the This of the compared share income our to per available year. first were $X.XX our a while

our to of NOI tenants. its decline and fair flows, charge since casinos of the expected Connecticut, to several With cash Based Foxwoods estimated of and in asset developed our outlet in nearby wrote the center, regard the the to impairment the opening markets Mashantucket, resort on center the has negatively impacted traffic occupancy future the its and in and consequentially on the our was center the value. the we down performance center

common to per terminology Note payout of FFO ratios. core that to our compared to the metric but metric to FFO per purposes most share to those same use confusion adjusted be same the referred $X.XX share, by was as XXXX. is to computing $X.XX acronym core AFFO, that an the quarter we refer that more first previously in available we've CapEx quarter and First in after our the to of eliminate peers for line of shareholders with

decreased tenant quarter, were we year first bankruptcies, center primarily X.X% results closures. consolidated same better NOI store These modifications, by for mild and expenses to prior slightly the the winter half March. In lease COVID-XX offset from quarter, had portfolio, than the compared partially the a of in of operating lower lower rents by second impact variable season, as due to result to snow due a expense removal anticipated, sales the and driven

how to deferrals treating the would are our I statements. financial like discuss rent a moment take to we on

timing we a deferrals of are these our continue of quarter the in For other leases amount record our to of will probable being collectability paid, lease same tenants recognize we to lease paid. the receivable to center extent evaluate need the will the on to in and will take receivables income, revenue and the and revenues the of balance reduce who evaluate the to not be determine are is FFO such and change made, If simply offer, sheet. to NOI, the net we receivable recognized. the our contract revenue the from of changes each substance Until

utmost financial a to strong position solid increase As financial Steve Tanger discussed, and have came maintaining We into through of a a and with balance this we further the is sheet, period of current the preserve number flexibility uncertainty. importance. taken steps additional liquidity

Board the we Directors, difficult a cash reductions temporary included These employees. As for salaries reduce in the salary for spread, reductions outflows. management pandemic temporary moved and to actions to cash of with decision retainers for other implement along quickly

this have expenditures, We certain deferred project capital redevelopment expenses time. G&A Nashville operating well at as and as certain the including

our quarter. of $XXX credit at move capacity under end all our the substantially the a unsecured we In million of down further the to drew financial strengthening of position, line

XXXX. had have March a Other interest by of trailing X.X a XX% our portfolio October XXXX unencumbered matures additional credit, year, option XXst, maturities December which maybe unsecured times. an XX-month mortgages debt largely unencumbered at we portfolio for until of we and As no line our than with in significant ratio coverage of of consolidated our and extended of

we had million. XXth, of April of balance As a $XXX cash

expect us sufficient conservative on our a the suspend help we Additionally, future our payments, our obligations as under Board approximately have debt challenging to environment. or our we most collection of any million per to meet will quarterly dividend even $XX liquidity assuming not receiving expenditures release perspective equates last to approximately These temporarily steps liquidity has our cash to which maturities, compliance no dividend with in years, remain of two rent basis. protracted Based pre-COVID-XX debt scenario and a estimated disclosed rent on approximately night, million payments month, from for covenants. in elected a endure $XX position to

length issued withdrawn uncertainty have we current environment to we near-term taking the the due the of to want visibility optimistic. impact significant reiterate necessary the previously our pandemic, that remain our are we challenges, limited the current to of Finally, believe and regarding the navigate despite and I around environment. all guidance. steps depth We the

balance resilient and compelling We strong model, have a a a sheet. proposition, value

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

Operator

[Operator Instructions] McElroy go First comes ahead. question of from Christy Citi. Please

Christy McElroy

any leases, did provide a Hi. you received the unresolved? if there's move the about of can if if what in XX%, versus XX%, pay, of rents the that portion what anything not Good detail thank you. changes, were that the on or deferral sales-based morning, signed were think collections there XX% you any modifications remains other like and to that And additional the If agreement return? I

Steven Tanger

Christy. morning, Good

offered a retailers open Let as the the me be short-term quickly clear. as deferral We method for as to possible. get

mandates monetize short-term back on feel of by comfortable forced and through of in we bring those get where their We period lifted. sensitive flow. facilitate when tenants that and are back tenants flow help quickly stores mandate, the their their our our possible as close them appreciate business. and that wanted employees cash this most We government Since to the were to were as opening inventory wanted to to fact cash their can they time we impact

However, no let there be mistake.

preserve We we'll unpaid contract, of actions are all necessary, our our any rights continuing and if rent. take collect under to to

Christy McElroy

on versus the at percentage say percentage this what signed you remains Could unresolved what point, agreement?

Steven Tanger

language. in changes our we As to offer. rights they everybody are the If will all the anticipating accept, the language far getting preserve open. the our as If do forward looking some offer, accept right will But we to under forward that to and change not, any of now,, will put to tenants deferral tenant-friendly we're concerned, are we're landlord-friendly plans there requirements more we lease. of them virtually then

update course, by. the happy you goes year Of to as we're

Christy McElroy

reductions, to while at provide regard expense you your at property closed? centers tax information efforts the can you to And, have been on operating in or looking And the expenses some reduce the additional property abatements all? are deferrals

Steven Tanger

year, at they're appropriate. practice, to Yes. bill. sure are local bills the we in and that property of there sometimes those in review year, as attorneys the December. And be that Most Every accurate are bills the tax look later due standard

on work close citizens communities be to provides time for to continue that. property for we responders. have first as good tax we to the revenue years. local have we to feel So, XX with want teachers, corporate But, police, We fire, the

So, the there's of the balance world. a in in tax and being corporate that value being property property a good citizen the of reflective is sure today's

Christy McElroy

from guess report property any quarter, I expenses property there what in to from that taxes, utilities, which operating you'll are be And expenses during is period, cut in operating aside for lower. aside terms that other of presumably the second you'll able

Steven Tanger

As do take? go you me? Jim, take Jim, you and may -- know that. want Sure. pardon ahead

Jim Williams

Sure. we’ve based it's of use million expense operating right budget. to cut the out the because been a Christy, of It's on few now, run rate good being the stores not able a closed. to lot

Our centers closed. never

of those reduced is as sure and on But, operating hours. still costs are reduced to maintenance back we I'm we as up, and But, center have going costs. that those those help does costs have to hours us return. security the as ramp -- some we So, on long of types save

Operator

Please KeyBanc. The comes Thomas ahead. Todd go from next question of

Todd Thomas

at there talked begin location XX% locations where the must what you bit Is that per process tenants Steve, about I in go reopening what which experiencing the have the of have restrictions guess stores lease? you're time in once that And centers morning. tenants as portfolio, reopen are the a little regarding for Good a at for Thanks. rights given the do eased. establishments reopen been ahead? retail Hi.

Steven Tanger

strong have We a properties. in the each contract tenant do with

we As were we reported, at quarter, the end the occupied. of XX.X%

under comfortable providing soon operation. the we necessary, as We The open leases open-air the get with will shopping feel try possible. working environment rights our enjoying if returning to And again. an lease. enforce to customers And we're are require them continuous where as will our and tenants

Todd Thomas

you Okay. hurdle terms few facing staffing, what retail partners, of been Is it they're And your they're what's centers inventory, reopening your it with or now, in that processes? biggest discussions has these safety? of challenge in discussing for a in have a some Do that reopening the the the sense biggest for weeks? obstacle

Steven Tanger

Todd, we with imagine, each XXX business over perspective as have you tenants, a model. might and different different

redundant, business back in our by it's as much of, inventory to start prompt all with conversations their work a getting stores team into So, tenants if entire to to very The their with they our facilitate help most tenant. be all reopening is business. tenant clearing but of partners, to to I one their most outlets profitable hate trying remains this and tenant have want by working do not them excess country. And get we division. back people our

Todd Thomas

shopper portfolio a and maybe chance? hotel? of of your at centers car you And traveling, Tanger right. information otherwise. that All have sense of you program any between your breakout have question then, shopper shops or for either here. I was just your from by your Do in one while sort much have air you the if to across or club how wondering app staying the Do feel last a base membership

Steven Tanger

normal we have looks be for that like. But, really much accurate Whatever I we in has know continue I you see our this as I'm have on answer and don't with we customers, sophisticated breakout you what happy pre-COVID. would don't the how have can goes obsolete. new world. dialogue the that really year a very and by, to value good, data today,

Operator

next of go from question The McGinniss comes Scotiabank. Please ahead. Greg

Greg McGinniss

morning. Good Hi.

a be formal. bit Just to confusion more any I'll avoid here,

spread leases being or Mr. now I most We're line now and happening to expiring you occupancy, encouraged renegotiated? activity? be re-leasing And sign what was leasing or year. current update an last to March on was renewals right trying with to see tenants to us in just the give on understand regards what's in through So, could are Tanger, activity then, rent options impact willing may

Steven Tanger

renegotiate. not continue to -- renegotiate We

portfolio. We in with volume the continue appreciate noticing to renew with pretty of existing tenants to extension existing of much work your consistent last the our is I our And leases leases the year. that

imagine, the again. pushed while, until button, you of might talking renewals most existing the get tenants they crisis in As open pause back a mode, have about this for

We conversations are where to open very roll in outlet new-to-Tanger to exciting open stores either concept success. possibly the or several stores and instances with in and new-to-the-outlet upon can continue some that with they test concept us permanent tenants popup out new stores

Greg McGinniss

you. at may Okay. -- on is you just base more include Christy's to accrual Thank accounting deferrals And basis? for you then, how inclusive follow And a question, expenses of looking intend it rent a that from on idea shifting rent? details. do any have an few deferral up cash much then, to The this just reimbursable point, is or

Steven Tanger

includes a basis. And have receivable no deferral we base today, The rent to have and as cash we extra the charges. shifted information with

Operator

Samir comes Evercore. The Khanal next Please of ahead. from question go

Samir Khanal

on little to bit in for disclose previous kind with sort sort you've into about that of on all kind guess, curbside question. are back Good just engaging the specific categories pickup. come on you about many sort I I with dealing square a excess to stores, I sort Hey. opening morning, mean, every retailer that, feet the of Can of what you expand gotten of and of Steve. generally space, talk the talked retailers of expand the about of you've into inventory tenant and first demand? the don't generally just need especially that looking XXX,XXX the quarter here. but go I to know

Steven Tanger

Good morning, Samir.

their still opening we're free years that weeks don't designer brand names people for a to online America been but expand tenants for these a And them has mix it's market And tenants open the only of we've to e-commerce a into presence. and tenants which successful new that looking it's obviously, some to, there's for outlet and allowed the for always existing that very outlets, the brand and Look, reasons, get that may being And talking to want physical that new to and designer affordable. extensions. of testing name in designer about, are feel know, continue worked their a I brand names travel stores all name into to aspirational in we're of best and are it's been more be exciting which prices really you that to world leave market three shoppers, only get shoppers. you again. As up homes kinds have at tenants with

today every and challenge, for advantage So, to planning of lots there as opportunities. of challenges, are people take these are

all love cost year bargain. America in by. have occupancy, potential tenants. for are But, they is we as again, a we've environment of and tough people businesses so and the to times, professionals cash to up with like talking said, dedicated, bargain, real be the profitable the universe hate Yalof. Steve We by we In this to a goes to time, will team lowest led of will tenant our an And as very profits, estate say we'll And a place have seasoned wide partners, wide, generate flow of you a these, to keep date good start over shop. like to that and it. need I times going I say reopen, optimistic outlets but to

business years Our XX been has sustained. for model

Samir Khanal

income over as you I'm I can time Okay. think only shifting guess, curious I taxable here. how dividend, to ordinary second my to you and sort your and satisfy pay is the the maybe at Jim. dividend income. as question on XXXX, $X.XX When And at just paid this was one And of I of guess,, look sort

Jim Williams

Hi, Samir.

XXth that'll year. dividend, May the our pay second for we be when the So, dividend

it's income And use we able -- us a this that that. certainly supported see tax where us there's to to the scenarios will deductions And CARES to Act, that's we clarify to minimum year. are Just completely things. meet income requirement book might be different can allow certain taxable some the by and distribution

Samir Khanal

Okay. that. Thanks for

Operator

Schmidt ahead. question comes Please from of Bank next of go The America. Craig

Craig Schmidt

the for new suggest to to for focuses on cancelled mean, the Is question the there's March U.S. there's excess need that any like there that lot have were possible seems My have April inventory tenants orders in you. and Tanger? a it that way new liquidate existing a of vendors their possible Thank get But, inventory. the rid of in vendors I part entry tenants. also the of. maybe retailers take to also clearly

Steven Tanger

you to Good it name that's us And the mentioned as think that being morning, Most that. to I brand be difficult that their world, cut are interested around and take being and that locations difficult and be or canceled, up in the various set don't delayed out in such, of would nor have shipments partner the made to we're Craig. doing delayed the we a not go product our very -- would label, directly supplier. tenant out. for that's

we existing So, working that the we're with brand only new names names. have and brand

Craig Schmidt

you tenants, these Okay. could quarter? new then, And open be they think by do third

Steven Tanger

be want That's with It instances that And they move. hope week. open reason We depends our people quickly in we get second they are And on will can why to plan. quarter. open. working no next can't new be. We how in several some them there's

Craig Schmidt

Okay. Thank you.

Operator

Advisors. Street Green of Tibone Vince from Please go comes question ahead. Next

Vince Tibone

monthly expect get during offering additional beyond, cash the How you levels recover Hi. country? are do you if before of reopening sales are long you slow Good June your and in about to to collections? initial to back -- of traffic rent foot morning. thinking How normal and deferral the phase

Steven Tanger

intention we right Vince, the program. now, extending deferral of have no

Vince Tibone

or negotiation just of mean, June your not probably lot a tact when to lot to It get will And it's if of just on Xst, how a of deferral companies what's the decision you to or sense offer I given cases. enough. rent? rent handle a for in partners than then, pay all. likely I'm situation? seems -- your prior, active the more choose Fair Okay. trying

Steven Tanger

Thanksgiving the but defer holiday are have to to abate help cash January approach happy to we after you be Vince, not we're at partners tenant and their to tenants and with rent with during closed of first a understand will the inventory. to a we be and We very taken the through sell and defer our going end chance the until tenant rent, go monetize through situation, you're the handout to seasons, most February have our issues, our rent where to you you've holiday were to flow say, Christmas able had proactive and partners. this March the try able

Today, but right have the a if no that period. interest under tenants deferral first pursue strong, will lease. able reluctantly open, extending that our in we're very choice, feel We we enforceable contract. we get not every we the And to we have have not

Vince Tibone

associated any more Okay. that are cotenancy common or makes Are any often a leases? any color. there clauses tenant Could for That discuss your total with helpful levels? you sense, in me. risks One center’s tenant individual

Steven Tanger

for leases cotenancy a occupancy issue because leases don't But, space department Since have cotenancy be tenant may There requirement to so have our open. big comfortable halo are cotenancies won't normally clause. we're we any part anchor. and/or major a they're tied levels. the be some Most either also say one sort there our Most we're but leases pretty be will of comfortable have stores, not leased with for the most brand, written, a that. that

if the leased, tenant So, not decides qualifies but still space. it open occupied to lease as

Operator

next comes go Mike ahead. JP The of Please Mueller from Morgan. question

Mike Mueller

curious, the how you have I'm a you've so traffic? that little Hi. Yes. in to bit relation reopened far, for can talk had sales about centers trended

Steven Tanger

Good morning, Mike.

we a stores of about Carolina, have in South as have, are mentioned, the third We stores More opening every reopened. now day.

to be well-known shop, where larger, next halo the two deal opening weeks. tenants, we the three people go to of great will call tenants, some them a And and travel over

customers tenants back installed, back and follow feel again, provide go the provide primary forward. where we is our data that's And to would small on get I -- the year as on will shop doing or you consumers any delighted tenants get goes say traffic area premature. site, now sales get again. the to just their that quarter where are our update delighted whose The store open centers a to set, really an the Tanger sales. opened move we'd goal you the And reports anecdotally be let's whatever comfortable. and are with to can from based sample by. be guidelines, each environment happy to to managers, or And stores an So, have business

Mike Mueller

you're so, that month Yes. And a or I to this weeks Are get guess of to one or terms for or back open, tenants I guess take thinking like, where be it can thinking should to year this kind of in a we project stabilize where new mindset, takes occupancy? the of development quarters, several to maybe so, a reopenings. two scenario month two a several you the is or it

Steven Tanger

every our different. us to or days only four tenant took Mike, is center. Okay. refresh three It

single trained, existing employee in continued. As I really Every is Tanger team motivated had place. has off tenant paycheck partners. perspective. can't answer. never strategy. and benefits do The existing precise also different the back you is well correct serve health like a a employee. a furloughed, different a but tenant we our opinion, us my a well their new to a it's business mentioned, in Tanger because laid with give now and asset of It's customers. from to morally thing They're never tenant ready not has a timeline. Every for Every an development That

we're a open. are contract obligation, and because they hard get and stores professional tenants hard they that hard the to their understand lease And our get to open So, a tenants working have their to rent, open. pay stores working to they're the working get

Operator

of Instructions] ahead. from [Operator McElroy Please Citi. follow-up a go we have And Christy

Michael Bilerman

with Christy. Bilerman Michael It’s morning. here Good

people Y, So, is Mr. it to -- Mr. are T internally? now and it’s referring

Steven Tanger

names. but hoping or I ST, Michael. SY join be you able the today. Steve or Tanger was are How or Yalof It's We just Steve various call Hi, to you call call different us. doing? to

Michael Bilerman

on, where outlet what also the can the is maybe Simon, of question bit that CEO. within with you have relative which obviously to focused about little I about different things affords? back bit the I you Well, been think it about to guess What a base, productive you tenant opportunity to Right. a and of Tanger that sat portfolio, drew Yalof. that portfolio about opportunities before but you you -- opportunity, the thinking do talk Tanger, little that join -- a a you business, you've but higher a step terms How become eventually in talked three just for can maybe

Stephen Yalof

them landlord outlet previously, all, part, I the Ralph outlet also But, I GAP mean, Lauren. Michael, marketing its partnership I'm question. Tanger, really my have we the don't on thanks as Obviously, XX-year of career. to believe great side great I team, the opportunity a in think an opportunity Not the in landlord for joined especially much have channel. value-oriented -- in tenant Steve. upside done centers, the one but team, there's it. been frequently. the management outlet thrilled I'm only great today's a with day appreciate both to in see our and about pretty is business. the talk both shop first also been the Well, and customer. shopping great and and of I'm I deals in forward looking entire I've that I I with age. open-air outlet business And I've for lot we

going that what's critical on some right for employees think of been I do the about, on that we the safety as happening focus it's can important the And forward So, of things obviously and to we from and have is my perspective, basis, I that think far focus the Steve as really our a talking us what now. have some the now had opened with we've we're getting open. Steven at been closed servicing shoppers good successes have mentioned the some and and customers. of start partners which also and few working as shopping supporting our get over centers, and as they never the to weeks, retail working the And have, past thrilled been had centers are through, earlier, as health

open. are get starting to Our national tenants

and food Our are popup open. kiosks getting stores and our retailers

enjoying get centers come for really that's hopefully, talking next the we're turned going the then, get as focus forward plans the Tanger. foreseeable lights watching And going about for energized, back start our to for the be customers what's on, And So, back. future. we'll

Michael Bilerman

be So, Tanger to going client, only stealing your I'm is I'm President, from tagline also a [indiscernible]. the the not

Stephen Yalof

Thanks Michael….

Michael Bilerman

April, actually you those May. percentage What about had I bit not collections, So, pay your this. to months rent this going of XX% XX% that them and because portion started a we're to a March, agreement talked two of of a and late Yalof, into program now January you -- go higher signed the little in have, in actually assume because into good half that's in what paying in February? deferral rent

deferrals. much not table is come not, just the think June, in because deferral say Just you're breakdown your to I tenant on any be as and give into us to going still let's how be June a because more versus That XX% let's important half. to we not offering sense still The accepted is pay half, say didn't. may that going rent XX% of

what just to some of clarity wanted I get has on So, the occurred. breakdown actually

Steven Tanger

the accept. accepted. offered that. they Michael, We've to Clearly, and We at for help we've We're a assuming partners try risk to tenant to gracious have let me that our take open offer. feel made will of with that them. get that solution redundant, those being comfortable

to give me And days. the it I an I actual the but intend our I’d comes to -- can't lease. comfortable, not have to fully be happy we and we'd without it It's documentation. Xst you number if in you, appropriate under And have June to pursue had number, yet. premature for We we're to really rights I be report if happy -- XX don't you give

Michael Bilerman

need I specific, a don't XX.X%. it's

just a it's think, I get trying to sense.

we clearly half We're I in late sitting this You mean, -- and passed. March. in a now mid-May. have months started here Two

Just think half them. I to And a well thing. look, very did honorable you -- of get a like sense of

think you're agreements. they base say, don't entire we've REITs You're lease actually allowing we your pay other had their seen to when hurting. you know don't to go know I tenants us and tenant any rent pay not what,

build going to it's know I So, with your goodwill tenants.

may quarter, stay those of that most trying a hold. get Just get bit we're well, future around XX? confidence only investors certainty was or that hope, some range think helpful rents them gives accepted let’s goalpost did them more to will the to it, of what just solvent, so it -- it'd to hope But, of of about, a that, because half sense think I Let's be a some paid. little having

Steven Tanger

certainty you're It's have to XX can more for me when looking in that do that too the early for. you I days we give information.

that Michael, that shareholders. operating we happens have the But going than that assumption I and have if appropriate and we As our the what will they that honor contract. necessaries today. we accepted rights have see whatever in can't they deem take expect and of appropriate paid not, we're And deferral. our that more I to April documentation you their have protect And the information not tenants if mentioned, we'll we'll give rights May, And they the June. under accepted

Michael Bilerman

Okay.

we've to spoken having a they've of we're has to them majority small look, very June quarter saying at good given most sense signed And the the well added what the some percentage. taking them, are least, roll least think see people, I I into going happens I versus I and probably think to no confidence and understand. grateful. in Street, June just intention uncertainty, think, like pay giving assume going actually just is worst the thankful. start because us February. a paying has -- and have They're mean, They're uncertainty it. us the accepted it’s rent deferral to to or saying April or tenant back And for May, to and environment next They and that it their more it going signed and of actually the half -- is having at January them

would you So, as -- helpful. I would if at of roll say, -- would the a update if I be be there's I maybe to -- June, instead would Street if we NAREIT days, XX into proper say think

Steven Tanger

if we'll their tenant if I appreciate to are they our able issue, what thoughts appreciate that -- see much are. They fulfill your they're very and sensitivity I what And or happens. their tell you our to echo obligation. will to legal that. willing partners

Michael Bilerman

Yes.

safe. Stay Okay. Thank you.

Operator

to Tanger question-and-answer our like session. turn to conference back the I closing concludes would This over remarks. for any Steve

Steven Tanger

extraordinary thank everybody safe. this year. Tanger the most, to joining bye maintain thank centers. interesting welcome work Steve and as each to journey I and during us the again, of team times a please be to our on Good team, now. I'd shopping these their be, very Once Wishing our good hard will for everybody to want like for you today. health, of all Yalof This viability

Operator

now has presentation. concluded. for today's Thank you Conference attending

You disconnect. may now