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Tanger Factory Outlet Centers (SKT)

Participants
Cyndi Holt Senior Vice President, Finance and Investor Relations
Steven Tanger Executive Chair
Stephen Yalof Chief Executive Officer
James Williams Executive Vice President and Chief Financial Officer
Katy McConnell Citigroup
Todd Thomas KeyBanc Capital Markets
Samir Khanal Evercore ISI
Caitlin Burrows Goldman Sachs
Craig Schmidt Bank of America Merrill Lynch
Michael Mueller JP Morgan
Floris van Dijkum Compass Point
Michael Bilerman Citigroup
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' Third 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.tangeroutlets.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

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

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

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

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

Steven Tanger

in for spreads sales. an joining to call. We of had exceeded in as expectations Good contributed of year. a quarter remainder us earnings our earnings occupancy, our and increase our thank XXXX a morning, for rent and guidance the and all which you the improvements third These for great quarter result

well leverage, objectives. additional our who Steve entire proud now I details. I proactive efforts low turn capital the liquidity, also successfully the to potential exciting to delivering opportunities. strategic call of are success the provide Tanger with ample team am and growth over positioned us tireless markets has Our of will Yalof

Stephen Yalof

our Steve. continued demonstrating strong increase our successful decision in you, for third We we strategic metrics, key core are to our portfolio and to of and supports execution tenant including of focus evident the rent contribute growth. The non-rental; of across to year. all a on is plan the our Thank across which sales occupancy, driving performance our revenues, all our continued delivered FFO quarter guidance spreads, momentum

beginning Our square restructurings despite pre-pandemic brand-wide X returned portfolio captured bankruptcies This anticipated. as includes in over XX,XXX feet square recaptured and since levels of having the to occupancies third due XXXX. to million feet quarter the we

in traffic Blended and to XX.X%, to improved by quarter will XXX continued compared ended we that basis September trend. rent XX. As positive are XX, regard year-over-year spreads, on basis up to this and quarter. we and we in since XX XX the leases of a rates sustain up end each sales occupancy September ended believe the was that cash commenced seeing average months XXX XX. this to improved points June of points the With the Spreads have year XXX continued basis second help momentum the points see months basis

this We quarter times more period. also significant rental percentage from growth the X.X XXXX benefited comparable which than was

rents. an pay variable rent are aim breakpoints for variable larger rent rent some for contractual value the and to of cases base trade renegotiated in many value trading the in height select producing the total prior rates pandemic, that increasing now During cases we rents with leases exceed component, reducing a fixed

our core in as component variable capture But contributed common base has the spreads the measure rent don't contributions and spreads strong rent only. rent Our to area change percentage rent FFO charges growth.

a the on to in part trends in last to renewals XX% more for on leases ability provide compared accelerated these to upside are variant period sales to downturn the negotiate the improving of attract we becoming to favorable. NOI. of push of was maximize on as executed the fill September in certainty. environment or scheduled of this being We underlying reaching our and permanent rents in is pre-pandemic variable longer-term levels. ended all-time the over $XXX expire the Traffic strategy preserving term quarter, saw foot while during approach portfolio slight base the objective leasing are space square leases, The which August light but returned over quarter months some Delta XX an to than timing Shorter permanent an focused concerns remain the is XX% to year. process increase space more we effective Labor tenants, renewal as for represented in per XXXX. high new upside due year for In representing time in we an XX over period. the traffic Tenant the same comparable activity. Renewals consolidated the to the Additionally, Day, XXXX of strategic XX% into key and converting leases of at September rates continue the approximately the our XX% longer-term leasing and in

over the to will convert goal space. is continue permanent space be with conditions repopulating to the as tenant While or current rent shorter deals strategy, higher to improve, leasing our time term this a retaining

home include base focus our brands on wellness growing furniture and this continue and portfolio categories also and added We tenant non-apparel have and beauty. Key to our new multiple footwear goods, and to and quarter. categories

grab-and-go estate. growing These shopper both entertainment across to we growing the and focused adding numerous users are peripheral serve, our food offerings We ultimately stores, presence time, have outparcel are our on and concepts larger on-center amenities quick and and dwell and of and visits, spend. aimed portfolio new sit-down, frequency, presenting our kiosks in also driving real

stages This for retailers communicate focus partnerships area to of centers interact events, onsite Tanger. provide advertising is sponsored annually. shop an of in is revenues. the with non-rental as growth the a it with Marketing form as our customers traction of and in an millions at seeing for tens are and opportunity that opportunity We early with activations, the still

initiative Day such Unilever, block for dwell revenue. in themes the and holiday were This tree and be we to Events activations quarter plan Labor captured planning brands opportunity Tesla which also plenty of additional Heineken, other This not lightings. XXXX. in but these line contribution increased party international as improve quarter we generate and over our profitable grow are doubled revenues only proven program and to fourth around across XX% Our the revenue by third is and has from example sponsored time, has events XXXX the traffic the this for portfolio. similar and with like a

Our to and TangerClub as including website, experience amenities attract sales important and core Activations demographics. and channels web draw digital consumer channels, Virtual customers, engage and shopper days such our and flash help while particularly members. young in and a our younger on-center our Shopper for app continue social to new experience complement shopper omni-channel providing hosted our an

is for us and Director Fashion so will the to do Tanger season. through holiday programs leading continue these Our

early running we holiday to staffing facing across Holidays to retailers ahead but are X situation. we shopping. programs are at encouraged. encourage Many our starting are Tanger the partnership As campaigns, proactively are began we November and shopping, issues, navigating and country In early. logistics events, potential with retailers underway look on are we the and

to filling our Although and ability the impact experience business, our holiday of to across exciting customers guests. on are portfolio. execute unknown, plan, our labor core chain to regard revenue strategic value we deliver by new is In and focus an and we create our and our continue unlocking supply optimistic summary, with opportunities on to

leasing new our brands positive with encouraged categories momentum enthusiastic and are are the centers. adding are to and We we our by

additional shoppers are to and shop. to new and they where with to We interact offering products reaching innovating and engage ways want our be,

over I remainder balance through financial to would like to opportunity We have operational continue the business take new XXXX. and sustained create clear value on our outlook to traffic, call and growth the and sales, turn to and compelling growth see path a you NOI initiatives now over sheet We're time. Jim with efficiencies, to results along of we Williams long-term same-center for a our believe, we to development results, improve. leasing,

James Williams

Thank third We quarter strong delivered momentum. you, results Steve. showing continued positive

$X.XX quarter We $XX XXXX deferred October track by we quarter. effective. of rebound and Same collections rents debt XX rents of pandemic related collected third strategy with proven the XX% XXXX the and our for redemption program, excludes of extinguishment $X.XX of per due quarter to was common consolidated per Third variable XX.X% employed million increased remain deferring driven third The bonds. sold of million to the under third per shareholders our the the by center to to of compared NOI million revenues. quarter on early and rent $XX during FIFO share in better of has to rent available to end be through current XXXX and other $XX FIFO $XX.X XXXX. approximately million, we in regard of of for had equity we approximately sell not expected our portfolio quarter. the million remained for the ATM for the Year-to-date did Core core With or additional a charge share share the $X.XX any available $XXX authorization. quarter during proceeds third XXXX than shares have the generating

$XXX announced, previously borrowing options. capacity $X.X date have capacity of XXXX feature we in As extended to credit, July a including the and maturity increase to The lines an lines our July unsecured of accordion extension borrowing with million amended to billion.

we X.XX% and rate outstanding the proceeds notes $XXX $XXX on of Tanger senior August a redeem in We the of the $XXX completed on the to was sale million a our the that that history. in in XXXX. notes outstanding used of lowest offering due X.XX%, Additionally, X.XXX% due million XXXX in our from was notes coupon million public at

make-whole million also a in $XX.X these We redemptions. September related premium incurred to

XXXX. maturities quarter of end we April significant As no debt had until

to markets conjunction with our leverage position and has Our improve in activity growth. earnings capital continued

X.X debt EBITDA month to improved September XX, compared period comparable to trailing of the net As year. of XX-month times the the our X.X adjusted XX for times for prior to

We have and capital a allocation. approach and to position always disciplined financial maintaining prudent prioritized a strong

requirements. will continue earnings dividend distributions and distribution growth evaluate Board taxable Our alongside income to

NOI grow in opportunities. Our to and investing portfolio evaluating priority our uses capital growth external selected of are

and for continued business, third increasing $X.XX in $X.XX of guidance to range achieved reflects rents of per $X.XX higher sequential the the quarter. midpoint. year, range the guidance a in our This X% of variable from our improvement prior the increase share Turning the to are core we FFO particularly an of at $X.XX, to remainder

Our guidance the restructurings additional remainder occur bankruptcies and feet related the potential also includes the for to square could up to year. of brand-wide XX,XXX that

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

Operator

of Instructions] you. question. today your with proceed Our first Thank [Operator Katy question Citi. from McConnell Please is

Katy McConnell

Hey, thanks, morning. good

a increase to contribution, on So could just go a now in significant be better of that deals? basis percentage seen outlook your on we've much understand forward structuring reoccurring how your can new discuss that rent we how based

Stephen Yalof

to in continued and the our us. we're growth is and our Katy our obviously about think And all know variable and some morning, have for as trades with quarter, guidance in deals have sales those to still rent Well, portfolio, the variable numbers of about believe for to we those yes, of upside regard prudent thanks traded Good we our been the for we year have we although and were across you some regard we we with also days numbers. there question. that that ago first when optimistic great restructuring are mentioned, great, a sales next particularly where been grow

sales So going year. and about I'm certainly into fourth optimistic quarter we're next optimistic

Katy McConnell

and to apparel leasing the then how you've categories Okay, category, exposure great. new about talk mentioned, are new the And shoes, can increasing contributing seen to progress Steve much you those tenant outside date? of to

Stephen Yalof

in footprints referring at executed just one with have a Barrel a taken San two portfolio, Gold very Riverhead us. lease We've also to big for recently We deals the Mitchell & Marcos. you it’s home our two category, in one and with in Riverhead. one Crate signed Are big who

are shopper big -- be and So growth during the to always are food responding of And and centers the improving other business retailers and on for the business. shopped operators and vehicle businesses a some where to well. better portfolio. burden food great food weekends our now a then be a our for that weekday traffic and us food seen the lot we increased of We've to have the in furniture beverage primarily supporting and seems customers seems great and that's been see our their week is historically base home business categories it's it’s -- as

So appreciate for result obviously opportunity that's of they staying more customers customers back when us in going shoppers. amenity food big it frequently, and onsite The to spends the from be keeps our going us a bigger coming do with both the forward. and of those shop longer

Katy McConnell

Okay, great, thanks.

Operator

is Capital Please proceed question. The Markets. from your Thomas next of question KeyBanc Todd with

Todd Thomas

morning. Hi, thanks. Good

midpoint I fourth is quarter? you if Jim, that bit through fourth maybe speak core quarter. to is of was could you little detail third wondering of heading anticipating provide change step-down $X.XX revised a maybe the which Can the are will the implied a about from of guidance items get to just the the $X.XX, year-to-date you run into some guidance, leaves First, FFO to the but quarter $X.XX

James Williams

is Todd overage there JVs. guidance. expenses. But and and some we're term but retailers our share there, the trying primary the rents back mean we with is to for other terms including there morning. component The factors of operating line chain centers where a moved our basis issues establishing drivers in and by labor good the that we're quarter, expectations benefit of we able through portfolio the fourth lower with here in mentioned, optimistic the accrual. shortage I tenants fourth rents final be we in is to prudent from hours Sure the retail the the the that the season seasonality the restored to increasing be of in are out of that are straight and some for out one of to and fees I quarter for noise navigate plus product be higher I have did a will rents generally going throughout holiday occurs lot believe expect hour think -- cash lower the Steve a that fact quarter, the that third penny gap one about hours, operating

Todd Thomas

included in And Okay, that reserved run the got any line were that, piece, collections bad we yes, there previously but consider should on of debt amounts it. in additional from stripping rent that's actually that line up rate? minimum following or on the helpful with out straight the rents

James Williams

that was nothing in the was significant third there No, quarter, one-time.

Todd Thomas

leasing bankruptcies look you more more activity could XXXX, do recapture you get persist expect I the in a just for restructurings? as if Okay, vacates one into to due lower and will ahead the be to unexpected at or environment XXXX muted year either

James Williams

we're Yes, that's less. what expecting,

Todd Thomas

all Okay, you. great, right thank

James Williams

Thanks, Todd.

Operator

question The your next question. proceed is Khanal Please Evercore of with from ISI. Samir

Samir Khanal

and guess XQ than to here the colour next about in Yes, so provide leasing you're the the everyone. think sort to more kind looks little Hey, pipeline this good next morning, points I basis guess on more occupancy out maybe the up bit how of just a pipeline. year? of XXX I trying over just like Steve, I'm into quarter, figure

Stephen Yalof

momentum. our never team has been great is leasing There busier. So

have positioned A which for where something customers momentum markets home the year, looking our continues home beginning some products leaning at is our are the shopping at component expand particularly but surrounding grow our really success lot of their products centres into existing great I housing the either of and started with build, talked a that extremely into. because therefore to it's I stores think to heavily really of will retailers best for value. and are of and across the the home category about portfolio. we're also these that great

those concepts, that's Gold, and us. customers & portfolio to a looking come got well-merchandised, Restoration, they Barrel, So, and when stay stores mix, about, frequently what all like our longer and more great always Crate are that generators, our back all great their it's making traffic Mitchell are its come will join and grow really they at Hardware, sure so we've

Samir Khanal

months on talk over the I touched on much nicely next question certainly end? about back, take my you and and as looks guess here. opportunity the which that many that revenues I you about maybe far talk item, And what we a guess maybe up just about more line think been how growth do how that. for have like so is Thanks XX properties next has other set can step

Stephen Yalof

executing general of And go front lot local we've businesses. lots guidelines, setting that build the When out we CEOs discovered based to about with team sign up and to a we've like places them shopping charge of that doing our marketing centre certain we've by do in great a pivoted now being tree or going directories, onsite them centres got just of approaches of lot million a our holiday, to running centres, in for take and of if digital to for put and the centre lightings, in success. partnerships come any done a to go year our lot corporate a and shopping businesses, that business, strategically activity, promotional backbone their the that parking the in portfolio transaction but into were and Christmas shopping is particular fields, doors we're of things retailers eyeballs business a marketing, boards, business really celebration, and managers backlit We XXX lot across of car us locations, establish over is our a advance sponsored to allow centres and of lot seen the by incented of strong order in-house a through those great and they numbers to get a there's business, people this strategies on lines. those our on we

out centres, initiatives it's us. our on will but great and the line think general one and our marketing business again manager not and there partnership some to also into is team in XXXX only our we It’s least once shopping at working growing near who the a is kudos continue one to So item that for future that in grow well. sustainable, as leasing

Samir Khanal

you. Thank

Operator

your proceed question Burrows from is Goldman Please Caitlin with question. next Sachs. The of

Caitlin Burrows

and Hi good begin that morning, announced XX% you there projects, everyone. in I of Maybe, to guys the starting beginning getting lease, got XXXX. you previously construction, when would you with national the think anticipated

the what think in on wondering you're start if you is XXXX? I'm there So, development and to track the latest early

Stephen Yalof

to track Yes, start Caitlin, the development. on we're

Caitlin Burrows

beyond and additional debt think Okay of acquisition then with just you’ll development? And for cash opportunities and absence there also great, the and what wondering you accretive out either there if opportunities? there redeployment are excess acquisitions I'm past of wondering talked the development, repayment in in I forward are outparcel you've about move opportunity, an think outparcel active

Stephen Yalof

say just centres of the for that. lease of of peripheral next properties build value. outparcel either we suit made, and start in a set starting return, where cash call. to is un-monetized transaction and will for we're even we'll own of be retailer them obviously professional part we've business big in a and be seven reason adjacent upside, year raised in takes recently energy tremendous peripheral positively us that land acquisitions, they you acquisition out for we build so are property cash But on beyond. it's of team because see also that's there, and the land, for a and there we our us facility, is when appropriate flow. at geographies opportunities But are to their bit Well running there continues have the our just time have one has to are capital that to that with a centre a yes a There We've with that little going is going ground us. while years land which deploy two-thirds the great be raw, in the land got flowing that what acres that peripheral for take up a as but a to plans reviewing about a we'd forward bought to because to lot obviously land the deals you shopping great discussed, only for some raise raised our serve, business Westgate, deal that to currently not we'll It just that

talk not half aware, businesses now. but a Football Stadium, parking great that our only next about up into about also As additional that on quarter. stand than site, weekend Cardinals sits for mile and Westgate revenue right you're Arizona and from we're centre hopefully less to the looking there's opportunity More

Caitlin Burrows

a lease development otherwise lands, it are maybe if you then the available selling and just on opportunities ground be that's could there of those know in? so so, build and just be or follow for bought I to some, from range them, that sounds up range parking Okay like quick but mixed regular of don't suit could all outparcel you'd to

Stephen Yalof

Yes.

Caitlin Burrows

Okay, you. great, thank

Stephen Yalof

Thanks, Caitlin.

Operator

Schmidt with question next Craig proceed The is question. of your Bank of from America. Please

Craig Schmidt

Thank Yes, your wonder you're examples categories? I concepts that you. to of entertainment if give adding the you of me non-apparel could some growth

Stephen Yalof

want we that also, these buildings share from our shopper, to great we to that also are hours, stay of in so some Well, the individuals, traffic in places keep and instances, let's some for two And for not they darts right mostly are uses, generators I they're things peripheral just out the reasons, we've some but a well the stay of places working you customer only onsite there’s that number longer. land. on lot are you great a lease extend of and some line the hatchets, leases those of open just adding, our they can name on can past I golf know the Craig the types the far of closing we of gathering of until retailer of don’t with say to of the things got execute some -- share but unfortunately, a now, larger,

Craig Schmidt

outlet outlets, those for stronger doing coming a lack stores Great, are a the the sell for what the sell stores given could sure that that into store just I'm wondering, problem they lot after through, that's I a traditional in helpful. -- And supply problem of potential about stronger, inventory are people because of make be throughs the a more run then talking the don't to seasons, and holiday? outlet are

Stephen Yalof

Well, pleasantly speaking checked surprised well you how are. staffed a few last and weeks a of spend We're temperature our visiting very stocked and lot with to the retailers, really know portfolio stores the particularly our stores. we've all of lot in

I as of think particularly major outlet we've going They've in value bought business stocked times, that business, many profitable lot the they is believe issues for ones into holiday months about business and the that are these a of a retailers, of and lot these thought months retailers, and the they've they accordingly. channel probably bought and for real this channel. for and The is channel stores have we sure that, to nurture to mentioned because going appropriately season. the they most be the make a planned

Craig Schmidt

you. Thank

Stephen Yalof

Thanks, Craig.

Operator

question. question with your Michael proceed Morgan. of next from JP is Please Mueller The

Michael Mueller

understand the but mentioned numbers the rent you just Steve, different reported rent you adjust you're and hi. the been how wondering ordinary the restructuring percentage of thinking that, would there, the spreads deals out with rent I spreads shorter for that, term, have would heavier to the compared on is Yes, if numbers? in percentage not COVID, if about

Stephen Yalof

Hi, Mike.

to you at in significantly that few that a is number really around One could is forward. the we just haven't for if the X.X up foot We per reasons. is overdrafts variability that XXXX. in and could What way, a that which what that foot, done tell be we of on a it close basis, bucks you were say it's and from look XXXX square where going

Michael Mueller

was it. yes, you. Got appreciate I it, That okay. it. Thank that

Stephen Yalof

Mike. Thanks,

Operator

your Dijkum van question. is Compass. from question next proceed The with of Floris Please

Floris van Dijkum

the that would typically, question, would you at are right is your you which us year, comes net. in levels of maybe walk average? you all XX% maybe cycle. obviously ones Good the short, what due typically robust through is, temp shorter your leases. but is of are the your space think also What that first tend then walk is than next for to very portfolio rents, occupancy more Can a least tend be your morning, on we what I increase And because guys. Steve, the whereas of perm, the short-term mentioned, ratios, converting the higher where X% term percentage percentage obviously gross, of Part presumably base levers, other us now? recovery be to to as

you talk NOI maybe see on going your and your operating margins, about on impact next the So potentially that for and year beyond?

Stephen Yalof

I think completely in heading direction. you're right the

go First of term got as know our, you year, sorry far leveraged above don't just short general back maybe when million this feet last year, concerned, leasing we again, as when that's to a all, square immediately But square XX%. our -- back, XXX,XXX we then and feet are out managers temps be and we agents.

want open say difference to the a lot estate I'll of and spaces said I center between on, the lot lot this importantly, guess difference have short context most that and an for vibrant they to real a shopping out a definitely full between you store. a necessarily lights cash know our but open now short as the of again before, vibrant, And don't And obviously from in to closed -- possible. occupied, so a as and our that like are us, experience, term and term doing are know And, the XX of vibrant leasing sure new that leasing shopping make know, a longer. on team term people stay agents And are flowing. a I've a much lease we door filled, lease, it but shoppers makes

I've and that full And on been centers, successful HUGO of and tenants had, we've in those, long-term significantly short into space or better based examples the some of that Gold term they've the up converted shopping lot that term UGG, two, converting we've significantly margins. of it last pretty them over Tory Burch, leases. some to a So BOSS, and got market our successes of our great leases. better Mitchell quarter it's And popped some obviously, better

Floris van Dijkum

costs, leasing your last your significantly noticed I thing down other the TIs Maybe you. from Thank year. were

your XX a I in sustainable XX think trend was it XX, is that previously, view? versus

Stephen Yalof

-- term don't were less leases think obviously obviously because think shorter I so. leases, No, I there was it down TI and some just term shorter they leases. shorter term were with

come So longer, favorable up I that. rents, leasing deal the I as TA the terms more get deals begins think to Obviously, higher pick the get terms for the will us. cadence think back with

Floris van Dijkum

Howell to Okay. Are more Atlantic Can I become ruthless as at and can ask we City should noticed low and assets occupancy, question be what more particular, and think also for there well. we you couple store there in what assets of I look are out in assets? those very allocate -- imagine is when with and one maybe, your still and Foxwoods beginning you I capital where

Stephen Yalof

we're is business, with take bring if the those of Foxwoods, in to obviously unfortunate from last be particular center gaming Foxwoods, obviously assets which the some back. to business international business, to tourism portfolio, so then center business Well, that's that hotel story time enclosed and our entertainment the and going strategic really year, being suffered the over and that down only shopping the all going

and it's center to center initiative back casinos We that we But, well. swing, do local working in a the are build a when shopping leasing to think the occupancies are up. full help on pretty seems beautiful

well. the center going asked now, we're again, the in that once market have City is executing of for. about that for some we're uses, too strategies we are of it's in that as services, in the in a the City particular a that And to we in some got about was the some entertaining you with mark, invest looking become entertainment Atlantic market it lines think leasing efforts center. a we the with working it's and question we've associated that plan the whole mall the geography and on is up City zone regional Howell that So, in Atlantic energy Atlantic one earlier will, talked which right regional to customer continue what

week, we City think to of international Foxwoods than more centers of those back little they'll coming as on bit Atlantic that and a path with tourism the a know our and well. centers that next be probably two probably both tourism heavily You most rely international are

Floris van Dijkum

me. from it That's Steve. Thanks,

Stephen Yalof

Floris. Thanks,

Operator

The Citi. Katy next from question. of question is Please with proceed your McConnell

Michael Bilerman

It's of results, part Steve, just stick to which can in. some the big a rent sales percentage if just if just kicked to third rent $X.X percentage versus was rent back I bit on of over but only that? how with go Katy. morning. Tanger, Michael that dynamics much of good little with kickers the discussion, overage dive we typical Hey, And Bilerman million rent that growth the quarter understand was your here this are we of just wanted obviously maybe never historically year, deals those deeper, with going some just to a the given

Stephen Yalof

let of tenants of so exchange share renegotiate were especially breakpoints to exchanges involved all obviously protection rent of a variable if some rates. downside base tenants they upside, are detail sold, to the instances you obviously, were high, component. into as once essentially these of the payout of numbers. was names, so an what lowering but traded going of last rent for those strategy made they possession the rent the particular And sales bankrupt sales and space, lot traded got the back. without and bankrupt those tenant raising broad time can occupancy when the hard them bit in And I'll came we that favoring get I'll year the on base Look when the in we're that Mike, we at more where close, going But tenant we we just felt we deals In dynamics the we certainly a little reopened. Jim really the give forward, occupancy a some dynamics, comment reporting save getting was but a it's strokes for our

raised retailer that instances, payout rents with paid deal in So they saw the exceed our would what have had left we many just the rates alone.

So be good pretty a for it turned to trade us. out

concerned. concerned, the are our trend to optimistic on-center traffic. things sales a traffic as to far about drive were we sales lot differently of and continuing and as We're build. outlook as far see are off-center doing As We

that a come consumer, numbers by and traffic after We're younger after seeing shopping shopping back that are up. going centers. going our younger consumer we're to pattern much Our

and on-center future. tell channel and more story with engaged, value to the in I new our a there's keeping regard strong loyal our So sales customers, customers today think driving traffic to drawing and and

Michael Bilerman

fourth season the rent you're going And quarter I I to before sales, retailers percentage going of best would Right? going Jim rent. there and your is to then a about to where that given some their percentage case it's and rents. assume with is, deals renegotiate percentage or base how, you, grow in or convert I assume typically mean continue existing would sales higher talked fourth if down. quarter those I guess rent convert quarter is holiday more on conservative to not being If this are the

And rate anything fourth decline the those question, why your up was so, your go percentage relatively decline there rent understand quarter should it and flat? to trying going think go be if rents percentage rental base would staying in should a to, I up the I'm converting sequential if back or Todd's then you're

James Williams

You're absolutely right.

in I lot product. in the were with was prudent of think guidance. a to logistics, There regard we noise and our market

prudently, beyond. particularly top last product. top over the product have around guys, and we're retailers, As checks performance, of said, I felt the in with our plenty guided they'll that the temperature that been to horn early store. pretty again, on we've they sales that optimistic making we them, were but have fourth in phone regard confident weeks, with we retailers with But the taking our The the still sure quarter few would

Michael Bilerman

the percentages that points effective the sales out the profitability much agree you, broke converting I and you has their how are it's X.X%? And relative retailers think You occupancy too all for but have has between or I of that, deals the high to great do off, rent concern How said deal shifted any for where definitely of I at strategy payments on Tanger now out, guess, break can base? those with in you paid break a costs? of you been percentage that maybe these store?

Stephen Yalof

cheapest I for bricks-and-mortar malls, the there business bricks-and-mortar in. of no. whatever retail channel I all, that you're any probably out think And we're streets, X.X% first business, think

is happening I cost. think rent our occupancy bit longer of and these That's inflection as that, we probably converting in that So much possible. also into our personally shorter in these if leases into a upside of the there's collecting and the And in rent business. right we're for cash term overage base that's get now certainty some numbers rent term where some of a that value base the us. little strategy base what's of some getting that's think in rent as there into growing deals, flow, is still we're I we're converting business, and certainty

we've converting continue a success, success getting we'll as rent short-term leases going a into that strategy. lot So on of And continue had leases. that front, with lot having of long-term permanent forward. a into lot rents built overage We're of a that we'll

Michael Bilerman

million, in to helpful some ahead the these $X.X to the to have sort either obviously Street third more momentum? and may of would numbers, doesn't to a on percentage as some shifts the give maybe just into between a of number about too all the think share understand in relationship on thinking bit as far this little bit XQ roll maybe give given the the almost guiding that, dynamics forward, you be get something clarity quarter, you breaking you to but of little helpful differentiation, be that a It a as rents, Street NOI down going total in so portfolio it's XXXX, of the more sort $X.XX

Stephen Yalof

think call We'll you. out. advice under take great Thank that and a I that's

Stephen Yalof

guys. Thanks,

Operator

to to additional call remarks. no for at the There turn questions back like Tanger are Steven this time. closing I'd

Steven Tanger

take in our season. to to want holiday very and Tanger for the On company. happy your you interest an everybody wish each of team we of thank just Goodbye. behalf I opportunity a healthy entire

Operator

today's concludes This conference.

may You time. your this participation. you for at disconnect your Thank lines