Tanger Inc.

Good morning. I'm Ashley Curtis, Assistant Vice President of Investor Relations, and I would like to welcome you to Tanger, Inc.' 's third quarter 2025 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 IR website, investors.tanger.com. Please note that this call may contain forward-looking statements that are subject to numerous risks and uncertainties, and actual results could differ materially from those projected. We direct you to our filings with the Securities and Exchange Commission for a detailed discussion of these risks and uncertainties. During the call, we will also discuss non-GAAP financial measures as defined by SEC Regulation G. Reconciliations of these non-GAAP measures to the most directly comparable GAAP financial measures are included in our earnings release and in our supplemental information. This call is being recorded for rebroadcast for a period of time in the future. As such, it is important to note that management's comments include time-sensitive information that may be only accurate as of today's date, November 5th, 2025. At this time, all participants are in listen-only mode. Following management's prepared comments, the call will be open for your questions. We request that everyone ask only one question and one follow-up question. If time permits, we are happy for you to re-queue for additional questions. On the call today will be Steven Yaloff, President and Chief Executive Officer, and Michael Billerman, Chief Financial Officer and Chief Investment Officer. In addition, other members of our leadership team will be available for Q&A. I will now turn the call over to Steven Yaloff. Please go ahead.

Thank you, Ashley, and good morning, everyone. I'm pleased to report another quarter of strong financial and operating results contributing to an increase in our full-year guidance. Our third quarter results reflect robust execution across all aspects of our business with our best-in-class leasing, marketing, and operations platform combined with accretive and strategic external growth, driving strong financial performance and positioning us for the future. Core FFO was $0.60 per share, which represents an 11% increase over the prior year period, driven by solid same-center NOI growth of 4%. We achieved record leasing volume with more than 600 transactions, totaling 2.9 million square feet over the trailing 12 months. This contributed to our quarter end occupancy of 97.4%, an 80 basis point sequential increase. Our portfolio reached sales productivity at an all-time high of $475 per square foot. We posted blended rent spreads of over 10%, our 15th consecutive quarter of positive rent spreads, while increasing our lease term durations for both renewals and new deals. we have seen a 50% increase in retenanting activity over the trailing 12 months ended September 30th compared to the prior year period. Limited retail development nationally has contributed to a robust leasing environment for our open-air outlet and lifestyle centers, providing a strategic opportunity to replace underperforming tenants, right-size larger stores, diversify merchandise assortments, and encourage reinvestment from existing tenants. These initiatives are allowing us to add more productive stores, plus new uses and categories that create variety and vibrancy, which in turn drive more frequent shopping trips, longer stays, and ultimately bigger spends. We are largely complete with our 2025 lease rule, which is aligned with our leasing strategy of increased retenanting activity and renewals targeted around 80 percent. We are already actively working on our 2026 lease rule and see continued opportunities to drive rent, elevate, and diversify our center's merchandise mix. Our shopping centers have evolved into seven-day-a-week destinations due to substantial changes in demographics and the outward population migration from urban to suburban markets. This has contributed to strong traffic creation in our markets where residential growth continues at unprecedented levels. This dynamic has fueled the need for more service, F&B, and entertainment uses in our centers. And as we continue to deliver these new uses, the shoppers are responding. We are providing a well-rounded, high-quality shopping, dining, and entertainment experience that is attracting new retailers and new shoppers alike, contributing to the record sales results we posted this quarter. Our third quarter performance was further bolstered by our early back-to-school and summer of savings campaigns that targeted new shoppers, younger consumers, and our Tanger Club loyalty members with digital, social, and SMS messaging. Tanger team members, influencers, and crowdsourced content creators reached millions of shoppers and created hundreds of millions of impressions through TikTok, Instagram, and Facebook, calling out our new store openings, sharing our best deals and their latest hauls. Over the summer, Tanger Deal Days featured our early back-to-school promotions, and shoppers with concerns over tariff impact on product pricing and availability were encouraged to shop early and were incented to do so with great offers from our participating retailers. This momentum continued through the summer and the rest of the third quarter, and we have already kicked off our holiday selling season, anniversaring our successful Every Day is Black Friday campaign, which started November 1st. Across our business, we continue to leverage AI technology to optimize customer service, enhance our data and analytics predictive functionality, and enable more efficient use of resources across our enterprises. We advanced our external growth strategy during the quarter with the acquisition of Legends Outlets, an open-air outlet center in Kansas City, Kansas. This acquisition demonstrates our commitment to disciplined external growth as we have added six open-air centers over the past two years, including three outlets. Legends Outlets has been rebranded Tanger Kansas City at Legends and aligns with our strategy to acquire well-located retail centers supported by strong residential and and economic market fundamentals, along with dominant entertainment destinations. Hangar Kansas City is the only outlet center in Kansas, and it anchors the state's premier entertainment district. It is surrounded by numerous traffic-driving attractions, including the Kansas Speedway, Great Wolf Lodge, a new Margaritaville Hotel, Nebraska Furniture Mart, Major League Soccer, and Minor League Baseball stadiums, a large youth sports complex, and a professional soccer training facility. The area continues to grow rapidly with Topgolf and the state's first Buc-ee's under development, as well as additional hospitality, entertainment, and residential projects. We are excited to enhance the center's productivity through our proven leasing, operating, and marketing platforms and to further leverage the area's expanding traffic drivers. Kansas City is one of our many markets where sports is a key traffic driver, and we continue to harness the growing momentum of this category in our marketing initiatives. In that connection, we're excited to announce this quarter our new partnership with Unrivaled Sports, the nation's leader in youth sports experiences, to be their exclusive shopping center partner in our shared markets. This partnership offers exceptional cross-promotional opportunities and will put our centers on the itinerary for thousands of young athletes and their families when they travel to these markets for experiences and tournaments hosted by unrivaled sports. This is just the latest example of how we are pursuing the strategy of creating compelling partnerships to drive traffic and sales and deepen local engagement in our communities. In today's dynamic retail environment, Tanger's value proposition continues to resonate strongly with both shoppers and retailers. Our record results demonstrate the strength of our platform, while our strategic evolution continues to create new growth opportunities. The strength of our balance sheet, with conservative leverage and ample liquidity, provides us the flexibility to continue to pursue selective external growth opportunities while investing in our existing portfolio. We remain confident in our approach and in our ability to deliver compelling results for all stakeholders. I want to thank our dedicated Tanger team members, retail partners, shoppers, and shareholders for your continued support. I'll now turn the call over to Michael to discuss our financial results and updated guidance in more detail. Thank you, Steve.

For the third quarter, we delivered core FFO of $0.60 per share. representing an 11% increase compared to the 54 cents per share in the prior year period. This strong performance was driven by solid same-center NOI growth of 4%, reflecting the success of our leasing and operational strategies across the portfolio and the contributions from our external growth activity. Reflecting the tenant demand that we're seeing, we continue to drive our total rent, reflecting both higher base rents and higher tenant reimbursements and locking in percentage rent on renewals. We are also seeing growth in our other revenue businesses, successfully selling our assets as marketing mediums and creating additional sources of revenues at each of our assets. We also continue to seek and achieve operating efficiencies, driving our overall NOI growth. Our balance sheet remains strong with conservative leverage metrics that provide us with significant financial flexibility to support both our operational needs and strategic growth initiatives, including selective acquisition opportunities like the recent Kansas City acquisition. We acquired Legends Outlets in Kansas City for $130 million using available liquidity and the assumption of $115 million CMBS loan that matures in November 2027. In conjunction with the closing of the acquisition, we settled approximately $70 million of previously issued forward equity using those proceeds to pay down our line and hold some cash in escrow for the Kansas City loan assumption. We estimate that the center will deliver an 8% return during the first year, with potential for additional investment and growth over time. At the end of the third quarter, our net debt to adjusted EBITDA was at five times, benefiting from the strong EBITDA growth and the retention of free cash flow after dividends, while our growing dividend only represents 58% of our funds available for distribution. Pro forma for the recent transaction activity, we estimate that our leverage would be approximately 4.7 times at quarter end. From a liquidity perspective, we had approximately $581 million of total liquidity at quarter end, including $21 million in cash and $560 million available in our lines of credit. At quarter end, 97% of our debt was at fixed rates, inclusive of our swaps. and our weighted average interest rate stands at 4.1% with a weighted average term to maturity of 3.1 years. The next significant debt maturity will be our unsecured bonds next September, 2026. Based on our strong performance year to date and our positive outlook for the remainder of the year, we are raising our full year guidance and we now expect core FFO per share of $2.28 to $2.32 a share, and this represents core FFO growth of 7% to 9%. We've lifted same-center NOI growth to 3.5% to 4.25%, which is up from 2.5% to 4% previously. We've also incorporated the modest 2025 accretion from the acquisition of Legends which raised interest expense as well as raising our weighted average shares outstanding from the settlement of our forward equity. Our guidance does not assume any additional acquisitions, dispositions, or financing activities. For additional information and assumptions, please see our release issued last night. The strength of all of our financial metrics combined with the operational improvements that Steve outlined reinforces our confidence in our strategic direction and our ability to generate long-term value for stakeholders. Our focus remains on maintaining this momentum while prudently managing our capital to support both our current operations and our future growth opportunities. We were pleased to welcome analysts and investors to Kansas City last month, showcasing our recent acquisition and how our external growth, leasing, marketing, and operating platform creates value for all stakeholders. We look forward to seeing many of you in Dallas in December for Nary, home to Tanger Outlets Fort Worth, as well as in Miami for the Jeffries Real Estate Conference in a few weeks. With that, operator, we can now open the line for questions.