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 first quarter 2026 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 this call may contain forward-looking statements that are subject to numerous risks and uncertainties, and actual results can 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 only be accurate as of today's date, May 1st, 2026. 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 reach out 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. I'm pleased to report another strong quarter for Tanger, reflecting continued momentum across our leasing, operating, and marketing platforms, and successful execution of our growth strategy, all contributing to our increased full-year 2026 guidance. Our first quarter financial and operating results clearly demonstrate the strength and consistency of our business. 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%, providing additional room for rent growth. In April, we announced a 7% increase in our dividend, supported by our earnings growth and conservative payout ratios. These results reinforce a core point. that are integrated leasing and marketing strategies underpinned by disciplined operating, asset management, and financial strategies are working together to drive sales, traffic, NOI, and long-term value for our stakeholders. As we've shared over the past eight quarters, we continue to execute to our center merchandising strategy. The evolution of our tenant portfolio is reflected in the progress that we've made, replacing underperforming retailers in our centers with more productive and highly sought after ones, creating a flywheel that drives traffic, sales increases, and ultimately rent revenue growth. Our belief in the strength of our portfolio is evident in our continued strategy to renew fewer tenants and replace them with new concepts, retailers, and uses across our platform. This is demonstrated by our leasing results. Retailer interest across our portfolio remains strong. In the last 12 months, we executed 651 leases totaling 3.4 million square feet representing record production for Tanger. Lended rent spreads of 10.5% reflect ongoing strength with re-tenanting spreads exceeding 26%. With little new retail development coming online and a consolidating department store business, we see this favorable supply and demand dynamic continuing. Our shoppers are demanding new brands, better food and beverage, and more entertainment options, and we are delivering through a steady pipeline of elevated retail, restaurants, and service uses, many of which are new to Tanger. This strategy is improving the utility of our centers and ultimately driving more shopper visits and longer dwell times, all contributing to increased sales productivity across our portfolio. Occupancy was up meaningfully for Q1 year over year, As is typical, the sequential change was due primarily to seasonal patterns. We are handling closures strategically with permanent backfill deals already in our pipeline and our strategic temp program bridging select spaces until the right long-term deals are successfully executed. Our marketing platform continues to serve as a key differentiator. We're delivering more value in new ways and to new shoppers, expanding our reach through broadened channels, and we are growing our Tanger proprietary loyalty program while providing value and personalized offers that today's shoppers expect. With over 200 on-center events and activations in the first quarter alone, our community engagement events enhance the customer experience, customer visit frequency, and dwell time, and solidify our position as an important stakeholder in the communities we serve. These highly successful on-center initiatives contributed to the growth in traffic we enjoyed this quarter. We are also thrilled with the success of our partnership with Unrivaled Sports, the nation's leader in youth sports experiences, and their rapidly expanding Ripken Experience platform. As their exclusive shopping center partner in our shared markets, Tanger Setters are on the itineraries of thousands of young athletes and their families traveling to our market. This is just one example of how we're capturing the momentum of sports tourism, and we are excited to continue growing these partnerships. We continue to monetize our center traffic through our marketing partnership business. Strong demand from both retail and non-retail partners for on-center activations, digital media, and experiential campaigns are large contributors to this growing revenue-driving business, and we are further expanding these capabilities across our portfolio. We're increasingly leveraging technology to support and enhance our platform, enabling AI across the organization to improve workflow and drive operational efficiency. As an example, our multilingual AI chatbot now handles more than 80% of customer inquiries, servicing our shoppers, suppliers, and tenant retailers around the clock, thereby saving time, money, and increasing productivity. Our asset management initiatives continue to drive value through peripheral and land activations, merchandising optimization, and investments in our centers. Population shifts and residential densification in many of our core markets is creating demand for more restaurants, service, and entertainment uses. These projects enhance the customer experience, support leasing momentum, and drive continued sustainable NOI growth over time. Our strong balance sheet and low debt to EBITDA ratio provides the ability and flexibility to invest in our portfolio and seek opportunities for external growth. In an uncertain macro environment, Panger's value proposition continues to resonate with shoppers and retailers alike. Our open-air center's compelling brand mix and focus on value positions us well across economic cycles. favorable market conditions supported by growing local populations, limited new retail center development, and consolidation in department store business continue to contribute to broad and diversified leasing demand across our portfolio, creating an engine for sustained long-term growth. I want to thank our Tanger team members for their hard work and dedication, as well as our retail partners, loyal shoppers, and shareholders for their continued support. I'll now turn the call over to Michael to review our financial results and updated guidance in more detail.

Thank you, Steve. For the first quarter, core FFO was 59 cents a share compared to 53 cents a share in the prior year period, which represents an 11% increase predominantly driven by solid internal growth, contributions from our recently acquired centers, and modestly higher lease termination income. 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. While we remain disciplined with cost management, The quarter's NOI growth was impacted by elevated snow removal costs, which had been contemplated in the full-year guidance range that we provided last quarter and as we discussed on our last call. Our balance sheet remains in excellent shape, and we are well-positioned with the flexibility to invest in our portfolio, pursue selective external opportunities, and address upcoming debt maturities. At quarter end, net debt to adjusted EBITDA was approximately 4.8 times, and our interest coverage remained strong. All of our debt is at fixed rates, inclusive of our swaps, with a weighted average interest rate of about 4% and a weighted average term to maturity of approximately four and a half years once our upcoming near-term maturities are addressed. Our leverage remains below peers as well as below our targets, benefiting from the strong, continued EBITDA growth that our platform and company generates. In addition, with a below average dividend payout ratio of only 53% of our funds available for distribution, we are retaining additional free cash flow after dividends supporting future growth. In January, we completed a number of significant capital markets transactions, which we discussed on our year-end call, that increased our debt capacity, enhanced our liquidity, extended our debt duration, lowered our pricing, and expanded our bank group. We currently have over $1 billion of immediate liquidity, and this includes our cash on hand, short-term investments, the delay draw term loan proceeds, and the full availability on our lines of credit, which provide us significant flexibility to fund capital investments, pursue disciplined growth opportunities, and manage our upcoming maturities, which includes the $350 million of unsecured bonds that come due this September, and the potential early redemption of our $115 million mortgage in Kansas City, which matures late next year. Subsequent to the payoff of these loans, our only significant maturity will be our unsecured bonds, which total $300 million in the summer of 2027, and no other significant maturities until 2030. And now it's just turning to our guidance. Based on our strong first quarter performance and the outlook for the remainder of the year, we have increased our full year 2026 guidance and now expect core FFO per share in a range of $2.42 to $2.50, which represents 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. And our guidance does not assume any additional acquisitions, dispositions or financing activity beyond what has already been completed to date. We are encouraged by the consistency of our results, the strength of our balance sheet, and the visibility into the continued growth that our leasing, marketing, and active asset management can produce. We remain focused on disciplined execution and fruited capital allocation to drive long-term value for our shareholders. We look forward to seeing many of you at upcoming conferences and property tours, and with that operator, we'd be happy and ready to open the call for questions.