Tanger Inc. Q3 FY2025 earnings call

• Strong financial and operating results with core FFO up 11% year-over-year, driven by 4% same-center NOI growth. • Record leasing volume with over 600 transactions totaling 2.9 million square feet over trailing 12 months, contributing to 97.4% occupancy. • Portfolio sales productivity at an all-time high of $475 per square foot and 15th consecutive quarter of positive rent spreads. • Successful early back-to-school and summer of savings campaigns with digital, social, and SMS messaging. • Acquisition of Legends Outlets in Kansas City, rebranded as Tanger Kansas City at Legends, leveraging strong market fundamentals. • Partnership with Unrivaled Sports to drive traffic and sales through youth sports experiences.

Core FFO was $0.60 per share, an 11% increase over the prior year period, driven by 4% same-center NOI growth. Record leasing volume of over 600 transactions totaling 2.9 million square feet over the trailing 12 months contributed to a 97.4% quarter end occupancy, an 80 basis point sequential increase. Portfolio sales productivity reached an all-time high of $475 per square foot, with blended rent spreads over 10% for the 15th consecutive quarter.

• Raised full-year core FFO per share guidance to $2.28 to $2.32, representing 7% to 9% growth. • Lifted same-center NOI growth outlook to 3.5% to 4.25% from 2.5% to 4% previously. • Incorporated modest 2025 accretion from the acquisition of Legends, considering interest expense and weighted average shares outstanding from forward equity settlement. • Guidance does not assume additional acquisitions, dispositions, or financing activities.

Q: Craig Mailman with Citi asked about occupancy and shifting temp space, asking about portfolio potential from 97.4% occupancy.

A: Stephen Yalof responded that temp tenancy is strategic, with 40 leasing representatives focused on short-term leases to introduce new retailers, and emphasizing the importance of keeping lights on and driving sales per square foot.

Q: Jeffrey Spector with Bank of America asked about marketing initiatives, retenanting, and future plans.

A: Stephen Yalof discussed successful early back-to-school and Black Friday campaigns, and retenanting strategy aiming for 80%-85% renewal rate, being selective with tenant replacements to drive traffic and sales.

Q: Viktor Fediv with Scotiabank asked about 2026 lease expirations and potential non-renewals.

A: Stephen Yalof stated they look at leasing volume and total NOI growth, not focusing too much on individual lease expirations, and emphasize driving positive growth through various leasing activities.

Q: Michael Griffin with Evercore ISI asked about acquisition opportunity set and institutional capital interest.

A: Michael Bilerman noted institutional interest in retail assets, and Tanger's operating platform as a key differentiator, leveraging their ability to add value through operating, leasing, and marketing platforms.

Q: Others asked about seasonal impacts, acquisition sourcing, co-tenancy clauses, and marketing revenue opportunities, with responses from Stephen Yalof, Leslie Swanson, and Michael Bilerman addressing these topics.