Tanger Inc. Q1 FY2026 earnings call

• Strong first quarter results with continued momentum across leasing, operating, and marketing platforms. - Integrated leasing and marketing strategies driving sales, traffic, NOI, and long-term value. - Tenant portfolio evolution with replacing underperforming retailers. - Strong retailer interest with 651 leases totaling 3.4 million square feet in last 12 months. - Shoppers demanding new brands, food and beverage, entertainment options, and Tanger delivering. - Marketing platform as key differentiator with community engagement events. - Leveraging technology like multilingual AI chatbot. - Asset management initiatives driving value through peripheral and land activations. - Strong balance sheet and low debt to EBITDA ratio for investment and growth.

4FFO was 59 cents per share, up 11% from the prior year. Occupancy ended the quarter at 97%, up 120 basis points year over year. Sales productivity increased to $482 per square foot on a trailing 12-month basis, and OCR remained stable at 9.7%. Core FFO was 59 cents a share compared to 53 cents a share in the prior year period, which represents an 11% increase. Same Center NOI, which excludes lease termination income, increased 2.6% in the quarter with revenue growth coming from higher rents, higher tenant reimbursements, and higher other revenues. Net debt to adjusted EBITDA was approximately 4.8 times, and interest coverage remained strong. Dividend payout ratio was 53% of funds available for distribution.

• Increased full-year 2026 core FFO per share guidance to a range of $2.42 to $2.50, representing 6% growth at the midpoint. - Same center NOI growth guidance remains at two and a quarter to four and a quarter percent for the year. - Guidance does not assume additional acquisitions, dispositions or financing activity beyond what has already been completed.

• Uncertain macro environment which could impact demand. - Potential impact of bankruptcies or closures on results. - Variability in sales and operational factors affecting same center growth. - Macro environment uncertainties affecting leasing and other aspects.

Q: On leasing side, expect re-tenanting spreads to continue in mid-20% area? What's retention rate?

A: Optimistic about driving rents, current retention anticipating to redo about 80% of roll this year.

Q: Walk through lease termination fees F&B vs traditional retail?

A: Negotiated transactions, NPV for rent due, not a lot of space but used to fund growth.

Q: Insights into shopping patterns/customer behavior?

A: Customers resilient, local shopping experience mitigates gas price impact.

Q: Opportunity set in transaction market?

A: Pipeline active, looking for assets where platform can add value.

Q: Bankruptcies/closures impact on results?

A: Guidance range contemplated credit outcomes, 2Q may have brunt of impact.

Q: Acquisition environment, what makes asset attractive?

A: Platform's ability to add value, operationally intensive assets with national platform.

Q: When would issue equity?

A: Depending on external growth and market conditions.

Q: Tenants driving re-tenant activity?

A: New brands, entertainment, health beauty, home goods.

Q: Outlet vs full price mix?

A: Case-by-case basis, looking for right mix.

Q: OCR on new lease deals?

A: Range depending on factors, upside opportunity.

Q: Kansas City and National Harbor assets?

A: Organic growth opportunities, working on future development.

Q: Outlet development opportunities?

A: Economics of building vs acquiring imbalance, maintain pipeline.

Q: Temp tenants pool?

A: Different uses, temp for frictional vacancy and seasonal opportunities.

Q: Property operating expenses for 2026?

A: Mitigating expense growth, still opportunity with low OCR.

Q: Occupancy composition temp tenancy?

A: About 10% today, may have higher temp in near term