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Tanger Factory Outlet Centers (SKT)

Participants
Cyndi Holt Senior Vice President, Finance and IR
Steven Tanger Executive Chair
Stephen Yalof Chief Executive Officer
Jim Williams Executive Vice President and CFO
Greg McGinniss Scotiabank
Katy McConnell Citi
Caitlin Burrows Goldman Sachs
Ravi Vaidya KeyBanc Capital Markets
Floris van Dijkum Compass Point
Victoria Francis Bank of America
Mike Mueller JPMorgan
Samir Khanal Evercore
Call transcript
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Cyndi Holt

Good morning. This is Cyndi Holt, Senior Vice President of Finance and Investor Relations. And I would like to welcome you to the Tanger Factory Outlet Centers’ First Quarter 2021 Conference Call. Yesterday evening we issued our earnings release, as well as our supplemental information package and investor presentation. This information is available on our Investor Relations website, 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

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

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

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

over Chief today Officer. the On and Williams, turn Steven call I Stephen Executive Please Executive Vice will Tanger. Steve. Chair; Executive Yalof, call Financial Tanger, Chief the President our to will go be Steven Jim Officer; ahead, now and

Steven Tanger

for quarter earnings XXXX And thank first you call. Good us joining our for morning.

improvement, retailers excellent the proposition see that centers open-air level pandemic. Confidence in starting the improving by vaccination highest its our both of macro days, our retail and late rollout an April outlook and we since We over Index are to reaching the Consumer provide the value as brighter operating evidenced metrics encouraged environment the shoppers. as XX by reflects onset are of some for continues in a past The

I make to on the strategy over progress company to to continuing position the by our to our priorities. return that confident now details to and to will to quarter time. performance strategic first our turn executing are provide We would on like over discuss Yalof growth Steve call sustained

Stephen Yalof

Steve. you, Thank

to quarter share in returned levels domestic and to We our XXXX open-air April. are centers traffic the the to nearly pleased exceeded levels in first XXXX

the We make operating and for continue our our priorities marketing outlet business, to core on progress centers. leasing,

are reflects X.X% feet a straight-line to of on merchandise time was the Consolidated centers. focused portfolio our re-tenanted bring in Tanger that the related a up our XXXX. from commenced end at leases maximize average during anticipated XXXX. of only rebuilding basis to and cash the dwell rental square Blended mix customers We shopper on XX.X% quarter end This occupancy driving recaptured and restructurings. X.X% during trailing the on brand-wide ended rates of leasing basis occupancy, frequency XX, bankruptcies curating March and to space decreased to new XX all months points XX and basis quarter, for XX,XXX the and the renewals

reflects and compared improvement see improvement continue a straight-line term XXX-basis-point reported support a rents. a to the longer on improvement cash basis as this will trends to spreads. However, XXXX on positive XXX-basis-point we believe better QX driving will traffic We our basis, sales

XXXX XX% quarter $X.X a all million. and April it of Through we re-tenanting quarter Collections on in with average. portfolio we of XX%. rates only collected above recaptured we the deferred approximately rents that XXXX deferred the XX% were be XX, repaid the anticipate we near-term, rental the will contractual spreads in fixed feel XXXX, of to rents balance as this to in space collected year, first leaving continue rents However, XXXX see due of of pressure first billed the

rate, this last with Meaningful quarter are outlook been had rebound we that Given sustained. comfortable discussed future our in for run traffic collections. we

of even to to quarter, still first weather returned XXXX operating of pandemic We the the XXXX a fewer feel winter relevant level, the traffic March we we hours. as believe at February impacted domestic impacts of XX% is and comparison For as started year. during were XX% more by traffic severe the to was last

our of partners XX Note proposition reflects leases two closed March strong unconsolidated Our usual in levels overall XXst economic months, shopping million JV as clearly last that Canada, that the renewal of to year, in expire space or the both value totaling as been at we X.X improve. locations and during stores feet. we under through over The square mid-February sustained represented the than centers, pace retailer their government air mandate executed the traffic the again offer and are process compared time closed and and and attraction activity some the retail shoppers. to commenced under slower delay mandate. XXX of year. of XX% our market dominant to to environments had our leasing scheduled properties, strategically have open same The decision trailing XX% Rules our reflects

to variety of our one to interest leasing to pace local concepts continue compelling end provides priorities. brands. with and our business our coming and new initiative a with from traditional tenants for opportunities centers, seeing with and expand interesting and are new measured shoppers. it, of new relationships regional add activity with Developing the leasing our We brands we particular This is higher more

goods grand seating Grand Day design, as Rapids, opening. iconic Memorial a expand and our for gathering microbrew Michigan elements Nantucket’s our a a Hilton home to footwear, In centers. growing our is housewares, apparel are new Head of example, and for continue center. connection in and located created Fish tenant and sporting grocer, beyond part construction Center, such have outdoor a mix underutilized formerly we with and space under gourmet we in reimagining food Meat design restaurant grocers, currently for result In we Additionally, gourmet as experiential, categories interactive and our decor beverage,

Fillogic, cost solutions aimed lower and and partnership X,XXX has a in our the distribution retailers platform Our with Deer providing of micro-distribution for shoppers. at efficient feet provided logistics-as-a-service Park, square hub for

activity, long-term as vibrancy new March immediate a tenants, We continue brands introducing to XX, channel may strong long-term This market NOI shoppers, on in and permanent in outlet of us retail delivering tenancy for XXXX. we the allowing GLA portfolio that improvement. more represented leases to creating our occupancy pop-up leasing approximately our of contributions, an basis certain cases, otherwise and temporary to defer total the several as variety X.X% which maintain consolidated serves to store, center choice important deliver for convert to functions, dark providing

and increase non-rental have line driving better priority and a center year-over-year. operating such been from benefited a also of empowering reflected previous the evolving the and than development and by our elevated transactions derived this at leasing, operational as quarter field significant discipline Since one ago, team that expense our has paid So first business joining efficiencies revenues Revenues our paid approach in levels, proven effective are proven media XXXX, leasing, XX% efforts the from leadership to to local operational is has year level. centers. in contributions. our a our top planned drive short-term These other media sponsorships contribution historically Tanger provide

they same are where authority now shopping importance in certain participating We we regarding One empowered meeting scale with have At the reinforced our decision-making more procurement the expenses. decentralized personalized management revenue of operations the benefit generation customer center’s to that COVID time, activities operating center team are environment with from creating and a experience. centralizing organization. the each thing and is

continued have fluid expand and and digital shopping the and our interactive and pickup marketing teams offering, Tanger transformation offered virtual curbside live website. shopper to on pre-shopping Our digital app capabilities, stream with

shoppers. creating content and aimed further at are relationship our a initiatives offers building personalized base, our users relevant by digital to and providing highly Our loyalty more for individual

strategy evolves. operating Our

our remains Our the we values. our environmental, In XXXX, governance issues into integrated materiality core assessment important third-party ESG these most commitment issues that a social to are to efforts we that a comprehensive are addressing stakeholders and conducted launched ensure by to have and unchanged.

engaged program. team DE&I believe organization education launching out are senior for we unconscious our and throughout is issues training rolled leadership our bias the grow be throughout executive organization. embedding impacting to ESG essential and board investing are on our We resources Our to culture will that diversity, inclusion are and time and leadership and which the equity team,

biodiversity, of on Tanger’s additional improve our shoppers. climate-related to beyond data provide energy with of centers broader our in efforts our footprint ESG grow. is opportunities by accessible reporting will shop so our on and and environmental global efforts existing to are stakeholders in task XXXX, immediate will usage to our efforts, the we investing our that also streamline ESG XXXX to emissions, them These new business services projects reporting easier engage we To newly supported to performance, this recommendations during our proprietary on the continue gas force we opportunities and We the and Tanger suite up begin new environment, to reducing financial in the focus Through small implemented disclosures with communities a businesses for waste have impact navigate. communities in ways, initiative. greenhouse through owner water and on in transparency employees, implement are offering and our management. including our set program In to outreach more incubate help retailers

to return Our sustained team on growth. a remains focused

strengthened have our growth balance opportunities. sheet We selective exploring are and

are confidence restrictions and our the long-term are you lifted, call our would I will are Jim remainder prospective we for our over us for our We results, tenants each outlook Progress that take financial through create making and planned safe as like we Williams of sheet are across for value turn priorities Nashville gives of to XXXX. to restarting marketing balance our development, strategic visits. shareholders. efforts the now Jim? to making

Jim Williams

Steve. you, Thank

continued the positive but recent reflect First impact restructurings. momentum showed brand-wide quarter bankruptcies pandemic, results the and of ongoing

approximately compared core share $X.XX $X.X built quarter the rent the administrative XXXX compensation to and modifications per costs the bankruptcy reversal First $X.XX negotiation. under first and to store consolidated shareholders common NOI quarter reflects million share, contractual or and for the share to FFO related in of Collections Core for by rents decreased Same were related deferred million per in executive was quarter excludes the plan to XXXX. the per other in offset of FFO costs. This for $X.X first partially of quarter of from closings voluntary rent XX%. general X% Center restructurings, a and reserves first of of XXXX brand-wide for previously fixed quarter. approximately expense retirement available portfolio $X.XX or recent the severance

to tenant that we till rents XXXX continue We to related our amounts periods XXXX. billed allowed including defer collect also for prior to

under or opportunistically deferred XX, XXXX, Implementing to totaled March in negotiation revenue reserves sheet. of for rents reduce March As our rental balance raised program, strengthen and we ATM $X.X remaining capital million. XXXX our debt

$XXX.X During million common unsecured the on XXXX for cash. million $XXX redemption proceeds borrowings And shares proceeds issued average partial $XXX loan on weighted our we first $XX.XX under per the redemption, outstanding. million we remains a amount generated principal $XXX notes the aggregate quarter, of completed the million share. net $XX at March of use in our XX, million to XX, in December X.XXX% April price senior We Subsequent million $XXX early million reduce that term of XXXX. of to $X.X due

We until December XXXX. debt have significant maturities no

be but $X.XX to be second or previously we the second the in approximately no to our impact paid share, approximately non-amortized have estimated make-whole impact in million charge As a of on will quarter quarter FFO. take premium million disclosed, costs. net $XX.X and debt million for to $X.X the XXXX charge The redemption income and loan per of including expect FFO, notes and an will $XX early currently core discount

approximately the We ratio our and $X.XX flexibility. enhances reduction $X.XX share dilutive per leverage XXXX income, net in net for FFO. for $X.XX impact debt our improves and core FFO be This to expect sheet for balance

strong financial have position. prioritized We maintaining always a

capital our continue allocation. approach to disciplined and will We prudent

NOI, in our longer In sufficient to addition uses and capital growth to priority grow include, term. of over reducing over evaluating status, levels portfolio time distributions, leverage investing REIT to pre-COVID to opportunities maintain our selective dividend the

Our unchanged. XXXX outlook for remains

continue we potential While from we our vacancies, current rent closures anticipate and additional are by encouraged modifications. pressure progress, the pace of store to

XX,XXX brand-wide earnings closures XXXX. expect approximately our square XXX,XXX on bankruptcies quarter during the square mentioned the quarter, we of occur during I and year. first XXXX total feet we call, recaptured most to As store the related restructurings first to during the should half recapture the feet of Including during fourth

termination lease elevated current further XXXX. to no domestic assumes Based share in per as decrease to fees $XX between per and are continue the share shutdowns $X.XX on be or Additionally, to share for and government to from there FFO level expect we our mandated per million by guidance assumes outlook, we recognized million $X.XX. core $X.XX $X $X.XX our XXXX

We maintaining $X.XX this are previously the impact discussed. dilutive guidance despite

release question. For additional take to up like please see details Operator, issued would can on our last for now night. our our first key assumptions, questions. we open I it

Operator

first ahead. Please The comes with Scotiabank. go Instructions] question [Operator Greg from McGinniss

Greg McGinniss

a we more morning. means to factors that could see whether if and Good Steve, led finally am or recovery after quarter about Could bit the smallest the least the here absorbing to of talk start that occupancy this next years. occupancy from Hey. maybe space drop turned mistaken, and maintaining some I quarter? corner QX XX that and in occupancy maybe drop the you not this QX was the from in last at

Stephen Yalof

-- Greg, activity quarter of to quarter in last started at leasing our meeting, Well, pick as the said, last the up in fourth I year.

that now of seeing by a are momentum number new continue represented that the have in We done portfolio. we deals

new But national additionally, are are are about, excited Some Bloomingdales to and we going think a again. -- Fishing, our are that Head. this up stores deals Meat they Nantucket we quarter be and lot actually Hilton -- we doing opening Riverhead, of tenants are exciting

recently of retailers portfolio just deals that a April number are portfolio we couple a doing our and our expanding of occupancy. into got with took have that are We we wide a on look

backwards to XX that we in We the first quarter. bps went back up are actually

Greg McGinniss

Okay. then similar as foot are a with to in rebound And you recovery see well? in traffic, tenant Great. the sales starting

Stephen Yalof

items reporting and better are the than some What rent foot sales. in planned tenant better we Although, anticipating sales we are traffic not anticipated anecdotally well. better now and as are deals rebound We right reporting variable are are But know on line the will obviously that at sales our got seeing reflective looking increases than are of now. anticipated we we retailers results. right the increase we that have those with than

Greg McGinniss

just And number tenant that think the a might again? you when sorry, final do start sales follow-up you reporting here,

Stephen Yalof

we hopefully will call this will We after discuss but that shortly. have --

Greg McGinniss

you much. Thank so Great. Okay.

Steven Tanger

Thanks, Greg.

Operator

Citi. The Please next comes question from with Katy go ahead. McConnell

Katy McConnell

you. Thank Great.

So, us guidance you previously factors first, some you the the can through some you the on of the unchanged color the decision ATM? are to maybe that provide for walk range more dilution offsetting keep and expected

Jim Williams

is This Jim. Katy. Hi,

quarter the we reserves rents. said, rent about had million. ATM a deferred on reversal As equity we about of also diluted had the $X.XX a $X.X that But impact issuance XXXX carried share. a had in we for the the That’s

So that. offset helping that’s

so the our on anecdotally and positive in our not current the we that from based seeing seeing from the we local outlook based and sales the GMs but decentralizing, -- traffic -- and revenues, now hearing only help are Just are empowering leasing are right drive we trends outlook. just the foot drive also what results from from on to our

and it year. think leave will move wanted to the our where same as revisit we we through we is that the guidance I

Katy McConnell

Thanks. to Okay. rating here it leverage of a what’s agency to your proceeds priority year? how is discussion much for with lower continue appetite And the from raise you in this ATM additional your then to and

Jim Williams

my proceeds our improves turn. to even half to and the climbed able we those in in and Katy, put did basically this program And the the we that and we I paid using issuing at leverage. so down have low-X bring was right time Well, execution into ATM great debt a think debt had when were net that our pleased down shares that a

basis. just results. that are and of then, it’s should get toolkit from and part things and and as X, prepared is all ideally, we we positive ways to We and in think, I One focused they -- his you is the certainly laser EBITDA doing around But this in that. do make heard comments The leasing equation. on a with to Steve growth the the are there be down are all ramping the course, have tool advised up we EBITDA mid-Xs that the on pro to and I of a also have positive like think trends -- remarks what that that’s on the ATM. the forma in we to grow two from

not intimate So it’s while and issue there’s an need the to proceeds, conditions we opportunistic nice that can have be to market permit. when

Katy McConnell

All right. you. Thank Great.

Operator

Burrows Caitlin ahead. The go Please question Goldman with comes next from Sachs.

Caitlin Burrows

morning. Hi. Good

you that an effort to things increase I are the You from guys sponsorship. mentioned other making income like think

of or this you give you be on where year in details think is can could and So it where today plan it kind some more? a

Stephen Yalof

Sure. income, we mentioned I handling added who’s Executive on other operations With our property right to prior morning. regard have President Good quarters, now. Vice

to over that management, marketing We us the over were revenue is provide parking the like through field that sources and our some of and short-term our strategy the the explored otherwise was they stores we hadn’t fruit was people leasing as recaptured a into sponsorship again, One opportunistic where dark iconic to and our From a that never we historically, we out came what from us we that are particular us. our up new were we so will of EV have far and partnerships, through able come space a was point leases. past hoping shopping COVID brand-wide think are with variety market relationships levels. But, help of things for in and restructuring leasing with said, we bankruptcy centers. short-term people the XXX our had to onset of who team obviously, are field revenue expense found bright of for time. on numbers fill these year visit we or of teams well retailers bearing and that shopping we opportunity, walls customer. these the to to take lot at view, great have and short-term through able generating that historic to opportunity which were a for all in and are of With a in interesting is our key monetizing on our digital marketplace inability million boards future of center, some we that to shopping centers for in the particularly a focus leasing, center have out some And the having shopping empower before. pretty providing long-term The great opportunity travel, short-term as go field-based is

We vibrant and extending initiatives beverage centers are and at food are dwell the some that keeping our of to these some shopping are our new time of through we centers. shopping of centers, each

think XXXX know, leases, increasing we our that rents. we can a short-term we fact market of with some to traffic leases continue improved on. our improve our big of strategy, tenants the great short-term the once with kicker one So, plan you stabilize, is to continues that our these sales the it’s longer is replace the far at improve, some levels, term of to And

Caitlin Burrows

that or clarifying revenue? the short-term other Just in on income included that is leasing, rental

Stephen Yalof

income. rental the It’s

Caitlin Burrows

Okay.

expense average are Okay. know side, on the that and of a I managing And versus expenses just down you yours. is then mentioned of XXXX the focus operating they

continue that’s if whether you may could or expect metric lower these on. what may NOI I could through the margin if you to savings occupancy are that keenly So your not and extent was go impact wondering focused you

Jim Williams

Caitlin. Hi, It’s Jim.

mind reduced. was just first we hours. reduced under in keep are still operating at It XX% think, I

XX. increased now I think just we that

certainly bit those forward. run and So going little place strategies maybe have in to teams we manage encouraged putting we first a empowered that think a are mitigate little quarter But a we I by and really the higher -- rate bit the be are GMs that expenses. might and

We to a are guidance. not going give lot of

go it the through a give that in little metrics right We you as FFO we will into and of other to move the more are restrict we going year. terms color that to now

Caitlin Burrows

Okay. Thanks.

Operator

The Thomas ahead. Capital next question with Please from KeyBanc Todd comes Markets. go

Ravi Vaidya

one-time, or forward? I the be go Can are please down that line And This to is much model G&A these you the everyone able levels saw Vaidya for new to Hope into historical Ravi being on expenses how we this the Thomas. range. the is is morning. G&A versus of doing to Todd back updated recurring would the investments made range that see going break this various well. Good platform? to are

Stephen Yalof

Good morning, Ravi.

So, is just a G&A, from investing a lot of that topline expense in people.

investments that also team be our manage the Vice development -- our added made somebody mentioned on monetizing I enjoined we We going handle some our the So we He’s made forward President to have to have property focused to land. us on to Executive operations. going a basis. of earlier peripheral

to are SVP help future We an to have on. we on also that acquisition us added our team FP&A of merger working business going and

So over we building and seasoned a we are investing team. in team are here that

are for our is are creating that -- personalized item for -- our investing more experience experience. line Another we a bit a of our digital customer in a little where creates our we digital transformation shoppers

return So market that’s are our and insiders, million ultimately that VIPs will in in very and that invest our going so to as something X.X business we in that’s a a to XX years. manner future to think Tanger that we targeted Tanger we continue and do million we

Jim Williams

Jim. is this Ravi, And

Ravi Vaidya

Okay.

Jim Williams

is to sure $X.X be plan saw million of to I voluntary this compensation of But it. in clear out the million point just call make was I retirement am that on I have just out that to sure mean not pointed that the we $XX our recurring. million to everyone $XX for cost in related think range guidance it’s you a release. would

Ravi Vaidya

pre-leasing Thank trending forecasted ground please update the Nashville are year? to just you. Okay. and this later How’s break you And still provide we an on can project?

Stephen Yalof

lot back of travel Nashville again. are marketing is we Look, our are on. the Yeah. able partners retailer project the to turning A

control planned our optimistic. XX% threshold. ground that are goal. to We site visits we and That’s until we the But, in we not land, break number hit we months coming a leasing have of the going got next again, are and weeks

Ravi Vaidya

you. the color. Appreciate Thank

Operator

Compass next Point. van with The go Dijkum Floris from ahead. Please comes question

Floris van Dijkum

question, first question morning, guess negative or leasing Thanks taking spreads. smaller encouraging Good I the It’s suppose. a that I question. can But guys. had I the regarding for spreads my so are is getting the view. some that Can will or be give flat you around around think comment spreads positive when lease they on guidance you will basically when turn some that your you that? in lined color

Stephen Yalof

Well, we not but give give we with I color, Floris. yeah, are I that regard in the are am will going moving encouraged color, guidance, to look, But to right direction.

We are levels narrowing COVID, the spreads. again lot leases restructuring. last to do. unprecedented We replace a still accelerated short-term space lot are brand-wide bankruptcies XXXX market back the think of of levels. strategy out. has We due has take over If have of traffic work while ride the been with a a same sales a that look of the our increased coming we year to we And back We to with our our space from got lot energy.

replace we able of strategically We a for will higher to that the because improve. lot waiting at to are rents be space market

Floris van Dijkum

can is the as tenancies? remind again temp then some tenants NOI well, about I you of as us And potential to here permanent upside what’s the to converting typical think impact

Stephen Yalof

deals will we quarter. and with are rent outlet and with lot retailers kicker. strong outlet leasing venues. announce again activity leasing triple our extremely lease long-term next the But a of a replacing they once more Hopefully, pipeline our is They more exciting deals nets love short-term of in we lot secured Well, format the longer They real and our anticipate love some future. long-term long-term typical deals are foreseeable and out we leasing they the in the taking term, percentage place right seeing a that are are now. fixed rent

Floris van Dijkum

my -- Just or a a from more structure. temp of converting on and perspective it’s more mall to a gross typically net permanent to and net rent a and side again type there the going tenant

your or uptick could thing the NOI of expecting and could X% You space. Is that of see be that X.X% we on an temp in on tenancies? kind impact XX% XX% to an that

Stephen Yalof

the traffic our Well, we on rents. that improvement, levels that, follow. with again, will we what are sales pretty not guidance can say in good with feel this I But is and providing increase rents

Floris van Dijkum

me. That’s it for Thank you.

Stephen Yalof

Floris. Thanks,

Operator

The Victoria next ahead. comes from question of Please America. with Francis go Bank

Victoria Francis

Good morning.

are on if your for popular tourism could this your many what tourism what does pick and tenants drive-thru into domestic to Given destinations, of summer outlook drive months sales travel the properties up? near your is heading extent

Stephen Yalof

I ask Victoria, am that sorry, of you part your the Can second missed I question. again?

Victoria Francis

Yeah.

to extent what think up, drive that Just you your tourism does do for if sales that could tenants? pick

Stephen Yalof

popular. traveled very Okay being the shopping opening traveling for shopping to northeast open-air to, people south the from shopping people again, be And saw once, doing quarter location during on the staggering. venues seemed of component, our our was you. year, go-to to centers centers that lot and sport housed for as have centers particular our shopping folks of we the that were the of tourist’s of go-to pretty destination in great a some stores regions. amount entertainment as Well, that period, last we QX I in thank not destination as early but were have. those the beverage else holiday a I up, about mentioned were food new drive-thru also shopping, and our the stood the experiential of last installations quarter as that as etcetera, well we or the shopping only the third some enjoy of extremely With events do, sporting concerts, little to no as

optimistic are summer particularly the shoppers particularly going that summer very those into about destinations A continuing trend digital of has build, it lot this our into the to to months. into and speaking in are and our traveling think going to we continue, So those marketing in as QX. we April initiatives and targeted initiatives is particular are the on traffic, focused

Victoria Francis

Thank Okay. you.

Operator

with Please Mueller The ahead. comes next go JPMorgan. from question Mike

Mike Mueller

Yeah. Hi.

nature, X% we think Just talked a when that is tenants. number an of on on to Is the X% in portion it I of that’s you AVR think are that footage quick tied shorter one basis? X%? compare term than the square that -- term does smaller shorter How

Jim Williams

-- Mike. is This is Hey, this Jim. Mike,

Mike Mueller

Hi.

Jim Williams

the If AVR to you are I your how normal? saying tenants a question, does from understand compare

Mike Mueller

Well, I percentage square term am saying, X leases. shorter footage guys, was X% on I think -- was it of

about short-term of terms is of -- -- think AVR that are me? are on you if So P&L, than the revenues if you component different follow in X% is looking that the you the significantly at

Cyndi Holt

this Cyndi. Mike, is Yes.

is X% going in terms tenants X%. than AVR less of be So, GLA for to

Jim Williams

Yes. Yes.

Mike Mueller

Okay. little a zip Is or just is bit it it same that of in less lot a less? kind code

Cyndi Holt

It’s less.

Mike Mueller

Less.

Okay.

Okay.

Jim Williams

… the And Yeah.

Mike Mueller

Thank it. you. was That

Jim Williams

And Mike, the short-term rents. But remember… leases will pay just lower

Mike Mueller

Yeah.

Jim Williams

It at for a of them investment the component. and us. a the cash us they a some lower flow, also over all have really and are the gives rent board capital variable property …it’s chance

they drive are sales and successful, as well. if drive the then can So they revenues they

Mike Mueller

that. That’s optically basis. it’s, square I makes number the looking No. That revenues Yeah. I Thank bigger sense. all okay. of you that we if are helpful. stuff statement, are really when wasn’t But, X%. the you. sure X% tight in at X% X% if maybe income just a where footage got much a shorter term or of hear It’s

Operator

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

Samir Khanal

portfolio so long-term just expand on that at Yes. come trying Maybe Steve, looking you we potential can selected are to bit. growth where that your the mentioned upside a the think little you see that times to I am a opportunities. couple about here? as

Stephen Yalof

and about calls on we opportunity the great are we until we at on that. think mentioned expand have are nation’s we things that Good I opportunity. morning, we and them. contract looking a not going under previous look, certainly Samir. announce that practice there’s outlet there’s of definitely retail is are make to Well, think we X% talking to But

of near build large the There’s a to part us that SVP Development, a So job help make we we looking and is number things going am those on addition announcements his [ph] Walkin that our future. our we Pete who’s of -- can the pipeline. in be and with are to I of hopeful currently working of at

Samir Khanal

Okay. so Thanks much.

Operator

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

Steven Tanger

person being as everyone seeing soon greet for to this NAREIT virtually as to forward but We us in in possible. you joining Thank more you importantly, look June, you able morning. at

safe. So be

your We you questions to are and all available thank Good-bye. interest. for any answer additional

Operator

you The conference today’s for presentation. attending has Thank concluded. now

disconnect. You may now