Tanger Inc. Q4 FY2025 earnings call

• Strong quarter with core FFO growth, attributed to focused execution, record-breaking leasing production, accretive acquisitions, and disciplined expense management. • Leasing volume over 3,000,000 sq ft, highest annual production. Occupancy 98.1%, positive rent spreads. Extended lease terms. Tenant sales productivity high. Addressed 2026 lease roll over 40%. • Focus on adding new uses/categories, replacing poor-performing tenants. Holiday season traffic positive via marketing. • Tech initiatives leveraging AI, multilingual chatbot handled over half customer service interactions. • Strengthened balance sheet with capital markets transactions, improved liquidity, extended debt duration, lowered pricing. • Named one of America’s Greatest Workplaces for Culture, Belonging, and Community and for Women.

Fourth quarter core FFO was $0.63 per share, growing 7.17% over prior year period; full year core FFO was $2.33 per share, up 9.4% from 2024. Leasing volume over 3,000,000 square feet, highest annual production on record. Occupancy at year end was 98.1%, 70 basis point sequential increase. Tenant sales productivity at $473 per square foot, up 7% from prior year. OCR remains at 9.7%. 2025 saw intensifying and upgrading real estate through peripheral land activation, center renovations, and addition of food, beverage, and entertainment uses.

• Expect core FFO per share in range of $2.41 to $2.49 per share, up over 5% at midpoint. • Strong same-center NOI growth expected in range of 2.25% to 4.25%, with only Pinecrest and Kansas City in non-same-center pool. • Recurring CapEx in range of $65,000,000 to $75,000,000, CapEx overall remaining in mid teens as percentage of NOI.

• Tenant bankruptcies, though watch list remains manageable and provide opportunities to remerchandise. • Seasonal nature of retail with potential fluctuations in occupancy and NOI. • Competition in the retail real estate market affecting leasing and property performance.

Q: Andrew Reale of Bank of America asked about Saks potentially rejecting leases and CapEx implications, and retailer conversations on tariffs and sales/promotional environment.

A: Saks not expected to reject leases, CapEx not embedded in current guide; retailers open-to-buys not decelerating.

Q: Juan Sanabria of BMO Capital Markets inquired about leasing trends, spreads, and customer visit stay.

A: Reteneting more profitable, renewing at lower rate to add growth; dwell time increasing with food, beverage, entertainment.

Q: Sydney McInty of Citi asked about acquisition volume, marketed vs off-market deals, and customer demographic shift.

A: Pipeline active, focus on value assets; customer demographic shifting with population moves, younger consumers.

Q: Richard Allen Hightower of Barclays asked about 2026 M&A and conversations with retailers.

A: In conversations with retailers, they support growth, work closely on transactions.

Q: Hong Zhang of JPMorgan Chase asked about CapEx run rate.

A: CapEx expected to continue in mid-teens range.

Q: Viktor Fediv of Scotiabank asked about holiday season and Kansas City center investments.

A: Customer traffic up via marketing; opportunities for development in Kansas City center.

Q: Harrison Slater of Goldman Sachs asked about bad debt in guidance and leasing spreads.

A: Guidance contemplates credit scenarios; leasing spreads affected by comps but remerchandising drives growth.

Q: Naishal Shah of Green Street asked about retailer bankruptcies and tenant demand.

A: Bankrupt tenants small, watch list manageable; demand strong in family, athleisure, health and wellness categories.

Q: Omotayo Okusanya of Deutsche Bank asked about loyalty program.

A: Loyalty program rewards customers, data-driven, but specific growth data not shared.

Q: Todd Michael Thomas of KeyBanc Capital Markets asked about operating results beat and lease auctions.

A: Beat due to strong NOI and acquisition performance; active in lease auctions to control real estate.