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Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 8:30 a.m. ET Assistant Vice President of Investor Relations - Ashley Curtis President and Chief Executive Officer - Stephen Yalof Chief Financial Officer and Chief Investment Officer - Michael Bilerman Executive Vice President, Leasing - Justin Stein Senior Vice President, Treasurer and Investments - Doug McDonald Ashley Curtis: Good morning. I am Ashley Curtis, Assistant Vice President of Investor Relations, and I would like to welcome you to Tanger Inc.'s Second 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.inc. Please note, 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 only be accurate as of today's date, August 5, 2026. [Operator Instructions] On the call today will be Stephen Yalof, President and Chief Executive Officer; and Michael Bilerman, 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 Stephen Yalof. Please go ahead. Stephen Yalof: Thank you, Ashley, and good morning, everyone. I'm pleased to report another strong quarter for Tanger reflecting the continued strength and durability of our proven leasing, operating and marketing platforms and our accretive external growth initiatives. This momentum shows up directly in our results and gives us confidence to raise our full year 2026 guidance. Quarter-end occupancy of 96.6% is in line with a year ago and, as expected, a slight moderation from the first quarter reflecting our proactive recapture of the Saks Off 5th space we discussed last quarter. We're taking a strategic approach to these closures. Backfill deals are already in our pipeline and we're leveraging our temp tenant program to bridge select spaces while we work to execute new long-term deals. These boxes sit in some of our top performing assets and we see them as real opportunity to add more productive uses and in-demand retailers with meaningful upside in rents and return on our invested capital. Our leasing results demonstrate the successful execution of our merchandising strategy and the continued demand to be in our centers. Over the last 12 months, we've executed over 650 transactions totaling 3.3 million square feet. Blended rent spreads were 10.5% marking our 18th consecutive quarter of positive rent spreads. We have renewals executed or in process for 70% of our 2026 expirations and continue to make progress re-tenanting less productive space. We continue to expand and elevate our roster with popular and highly sought-after brands, food and beverage concepts and service and entertainment uses, driving ongoing improvements in the quality and diversity of tenants seeking space in our centers. Notably, retailers once focused on major metros are now increasingly adding stores in mid-tier markets where many of our centers are located. This demand is created by the continued consolidation of the department store business, the lack of new retail development across the country and the substantial permanent population growth in our markets coupled with strong tourism activity. As we grow our lifestyle portfolio, we are broadening our retailer base and seeing demand from brands native to each of our platforms along with increasing opportunities for cross-platform growth. The successful execution of our initiatives has resulted in a more diverse and productive tenant roster where the Top 25 tenants, which represents more than 60 brands, now comprise approximately 50% of our rent, down substantially from over 60% 5 years ago. And in the same time period we've grown our portfolio to over 800 brands, up from approximately 500. This quarter, we saw the benefit of increased international and domestic tourism. The World Cup demonstrated our ability to capture opportunity and traffic from major events in our markets. And we're excited to see even more sports and entertainment activity coming to our adjacencies, including the new Chiefs Stadium in Kansas City and the Sphere development at Nashville Harbor. Through our early back-to-school promotions, our outlet centers have become the destination for this important shopping season and we're particularly encouraged by continued engagement we're seeing from younger customers. Our marketing platform remains a real differentiator for Tanger enabling us to reach shoppers where they prefer to engage with personalized offers delivered through their preferred channel. This approach is driving higher subscriber and engagement activity while we also continue to build on our TangerClub loyalty cohort. Our investments in AI further strengthen these efforts. Our AI-powered communications match our subscribers with relevant messaging from the brands they select and contribute to increased open rates, wallet downloads and shopper visits. Beyond marketing, our AI-enabled customer service tools now handle the majority of all inquiries and the volume continues to grow. Looking ahead, we're focused on expanding these initiatives to streamline operations, sharpen our marketing and consumer engagement and free up our team for higher value work. The value of this engagement combined with the impact of our on-center events, activations and partnerships is directly visible in our results. Traffic remained positive in the second quarter and the momentum has continued into July and the important back-to-school season. Average tenant sales reached $487 per square foot on a trailing 12-month basis, up 5% year-over-year. This performance reflects our strategic improvements to the portfolio through new development, acquisitions, dispositions and peripheral land activation along with our continuous merchandising across both existing and newly added centers and we still have continued runway for growth with a relatively low occupancy cost ratio of just 9.7%. Our disciplined external growth strategy continued this quarter with the acquisition of Levis Commons Town Center, an open-air lifestyle center in a vibrant mixed-use district in the Perrysburg submarket of Toledo, Ohio. This market-dominant center has an expected first year return of roughly 8.5% with room to grow over time. This is the seventh open-air center and the fourth lifestyle center we've added in the past 3 years and across all of them, we've proven our ability to apply our platforms and drive real growth. Across our portfolio, we continue to benefit from favorable demographics and population growth in the markets we serve. Over the past 15 years, the areas around our centers have grown at roughly twice the national average and growth within a 10-mile ring of our centers has exceeded their MSAs by about 25%. We expect that trend to continue driving incremental demand and traffic over time, reinforcing our centers as the anchors of the thriving communities they serve and creating additional long-term opportunities to increase rents, invest capital and unlock value. Our balance sheet gives us the flexibility to take advantage of this growth and we remain conservatively levered with substantial capacity to fund both our external growth and our reinvestment in the existing portfolio. I want to thank our dedicated Tanger team members, retail partners, shoppers and shareholders for your continued support. And I'll now turn the call over to Michael to discuss our financial results, capital market activity and updated guidance in more detail. Michael Bilerman: Thank you, Steve. For the second quarter, core FFO was $0.64 a share compared to $0.58 a share in the prior year period, an increase of 10.3% driven by our strong internal growth and our accretive external growth. Same-center NOI increased 3.5% for the quarter driven by increased base rents and tenant reimbursements from our continued strong leasing activity along with ongoing growth in our other revenue streams. Our tenant watch list remains at low levels and we are encouraged with the momentum that we're seeing in our business and we have raised our FFO and same-center NOI guidance. Our balance sheet is extremely well positioned with low leverage, ample liquidity and a largely fixed rate debt structure. At quarter end, net debt to adjusted EBITDA was at 4.7x, flat with year-end '25 and that provides us capacity relative to our 5 to 6x target. 100% of our debt is at fixed rates, including swaps. Our weighted average interest rate is just about 4% and our weighted average term to maturity is 3.3 years. We ended the quarter with approximately $1 billion of total liquidity. This includes $355 million of cash, short-term investments and our delayed draw term loan commitments; the full availability in our $620 million unsecured lines of credit; and $24 million of proceeds available to us from the forward equity that we issued under our ATM program. This liquidity gives us the capital that we need to redeem the $350 million of unsecured bonds maturing in early September as well as to be able to continue to fund our internal and external growth initiatives. In July, our Board authorized a quarterly dividend of $0.3125 a share, which reflects a 7% increase over last year reflecting our continued FFO growth and the confidence in the durability of our cash flow. Our payout ratio remains at low levels in the low 60% range. providing additional liquidity to fund our growth and serve as a basis to continue to grow the dividend over time. Based on our year-to-date performance, the acquisition of Levis and our outlook for the balance of the year; we are raising our full year '26 guidance. We now expect core FFO per share of $2.45 to $2.52, which is up from $2.42 to $2.50 a share previously and our new midpoint represents 7% growth over last year. We have raised the low end of our same-center NOI growth guidance to 2.75% from 2.25% previously with the high end remaining unchanged at 4.25%. Our guidance for G&A as well as recurring CapEx are unchanged from last quarter while our expectation for net interest expense has increased modestly due to the acquisition of Levis, the interest earned on our cash and changes in the forward curve. Our guidance does not assume any additional acquisitions, dispositions or financing activity. And for additional details on our key assumptions, please see our release issued last night. We look forward to seeing many of you at the NYSE Real Estate Investor Access Day in August and at the Evercore Barclays and BofA Securities conferences this fall. Finally, I encourage you to take a look at the photos and video that we've embedded in our investor presentation on our website. They give a visual sense of much of what we've discussed today, including the quality of our centers, our tenant base and platform that continues to set Tanger apart. And with that, operator, we'd now like to open the call for questions. Operator: [Operator Instructions] Our first question will come from Michael Griffin from Evercore. Michael Griffin: Steve, I'm curious if you can comment at all about the health of the consumer that you're seeing in your portfolio. It seems like leasing has really kept pace despite the elevated gas prices that we've seen over the past couple months. I mean have you seen a shift in the customers that are coming to your centers, maybe some of the folks that might fly somewhere for vacation or driving to Hilton Head instead. Just curious if you can give us some sense of where the consumer stands in the portfolio. Stephen Yalof: Sure, Michael, and thanks for the question. We see the customer -- we think the customer is quite resilient especially this year. We had anticipated some headwinds at the beginning of the year; higher gas prices, higher interest rates; but that's really caused a lot of folks to stay domestic this year. Couple that with the World Cup and we've seen a lot of folks coming through shopping centers this summer in addition to what we had anticipated. We're finding a much younger customer come and shop our centers as well and I think that's a really important cohort. It's one that we've done a great job of marketing to. But more importantly, we've been leasing space to brands that these younger customers are looking for. So I think the combination of all those things has led to a really robust customer traffic this summer. I'll layer in one more thing, the movie business. The movie grosses right now are back to the numbers that they were pre-COVID. The 3 movies that are out currently right now largest box office ever. We're seeing extended hours in a lot of the movie theaters. So our centers are enjoying customers coming lot earlier, staying a lot later. And with the restaurants and other services that we brought into the mix in both our outlets and lifestyle centers, we're seeing that as a great draw. People are coming early to enjoy the shopping, staying late enjoying the dining. And that flywheel that we've created in the new merchandising mix has really been a great customer draw. Michael Griffin: That's certainly helpful. Maybe one for Michael on the transaction market opportunities. Clearly, you closed the Levis deal this quarter at a pretty attractive year 1 yield. What does the competition set look like for both outlets and lifestyle centers? And how do you think Tanger is well positioned to potentially capitalize on future external growth opportunities? Michael Bilerman: We're pleased that we have the balance sheet capacity to act. And what we've been able to demonstrate through the 7 deals that we've bought over the last 3 years is where we can leverage our platform to create value is really where we're able to create long-term stakeholder returns. And so when we look at transactions, really where can we leverage our leasing, operating and marketing platforms to create value that others may not see? I would say the other aspect of our store growth strategy is being able to look at both outlets and look at our lifestyle centers in a lot of mid-tier markets where there may not be as much robust competition, allowing us to transact. It is a competitive marketplace. There's more capital chasing retail as evidenced by fundamentals which are strong, limited supply and the attractive growth opportunities, and we're going to stay prudent and disciplined in our efforts. Operator: Our next question will come from Greg McGinniss from Scotiabank. Greg McGinniss: On the Saks locations, how far below market were those leases and what type of large format customers do you think is going to be additive to the centers where you bought back the leases? And then if you could also touch on the CapEx needs, that would be appreciated. Doug McDonald: Sure, Greg. It's Doug. The one that we acquired, we felt provided a considerable opportunity to mark those to market. We haven't discussed exactly what those are, but I'd say that the rents that were in place were similar to the temporary rents in our portfolio and we said before that those provide an opportunity for often a 2 to 4x multiplier on the new rents. Some of these will be single-user replacements, some will be multi-tenant. There we're trying to find the best fit for each of these centers and we are in advanced discussions on some of the centers. The CapEx needs are going to depend on the use and whether we're splitting boxes, but the overall economics we felt provided a really significant return on our investment and we're excited about the value creation opportunity going forward on those. Greg McGinniss: Okay. And then in looking at your occupancy, there's plenty of centers with over 98% occupancy. Is there excess land where you can capitalize on potential ground-up development opportunities in these proven locations or do acquisitions make more sense to use that balance sheet capacity from a risk and cost-adjusted perspective? Stephen Yalof: Well, I think both provide great opportunities for us. With regard to the existing portfolio, a lot of these centers when they were built years ago, a lot of excess land was acquired. And we've been speaking over the past few years about our peripheral strategy where we've been monetizing that peripheral path. And one of the great shots in the arm that a lot of our centers, particularly in the outlet space, have seen is the fact that permanent population is now moving closer and closer into centers that were originally built far away from department stores and other wholesale sensitivity issues. Now with this great wave of folks moving out of bigger cities, moving into some of these mid-tier markets, places like Myrtle Beach and Pooler, South Carolina; our centers, they want to be more things to more people giving us the opportunity to really monetize a lot of that external land opportunity. We got a lot of case studies that we could share with you of things that we've done. With regard to expanding existing centers, a number of these centers were similarly built with expansion opportunity and that's something that we're leaning pretty heavily into right now. We're currently under construction in a couple of our centers across the portfolio to renovate, rehabilitate, but also expand those centers to create more upside, more opportunity and create the space that today's retailers and restaurants are looking for in modern presentations of shopping centers. Operator: Our next question will come from Akhil Guntupalli from JPMorgan. Akhil Guntupalli: This is Akhil Guntupalli on for Michael Mueller. It's been nearly a year since you made the Legends acquisition in Kansas City. Can you give us an update on any significant changes or upgrades that are underway? Doug McDonald: Sure. We've been really happy with the performance there so far. It's a great asset. We're excited about the market, all the demand drivers in that market. We've had some good traction on the leasing side. We've been able to find some efficiencies on the operating side. And we're really excited about the value creation opportunities that will continue to present themselves at that center as we keep executing. Akhil Guntupalli: Got it. One more question from my side. When you look at your tenant roster and lease expirations for next year, how are you thinking about bad debt levels and how could they trend compared to what you're seeing this year? Michael Bilerman: We'll continue to approach the market conservatively and evaluate things on an ongoing basis. Our watch list today, as I mentioned in the comments, remains at low levels as some tenants have rolled off. And so the overall demand levels are positive, but we continue to make sure that we understand our credit levels. Operator: Our next question will come from Juan Sanabria from BMO Capital Markets. Juan Sanabria: Can you hear me? Stephen Yalof: Yes. Juan Sanabria: Great. Happy I was able to figure that out. Just with regards to the ancillary income line and the various drivers of that. Just curious if you could size the opportunity on a long-term basis on marketing events, loyalty, all the various different initiatives you have and what's kind of at the forefront of driving growth over the near to medium term? Michael Bilerman: It's been an area that we have focused on to create additional value beyond the lease line. You look at that other revenue stream, it equates to almost $0.5 million per center on average. And we feel that there are opportunities to continue to grow those line items. We have the opportunity certainly at the deals that we acquired. Doug just talked about Kansas City. One of the things that was very evident, and I think you were on our tour last year, was just the signage, old static advertising that we can enhance. And so not only in the core portfolio where we continue to find opportunities to drive value in selling our assets as marketing mediums and then adding other sources of additional revenue as we've grown our loyalty program, as we've put additional services, whether they're EV charging or solar or any other way to generate additional income from just beyond leasing, those are the things that we're flexing. And I would say that opportunity within our acquisitions is one part of the value creation that we see from our platform. Juan Sanabria: And then if we could just go back to Saks and just more broadly the occupancy expectations. How should we think about the trends in occupancy to help drive same-store NOI for the balance of the year? And is there any incremental drag from the second quarter to the third from Saks or actually a pickup with some of the boxes at least being temporarily filled? Michael Bilerman: Great. We focus on NOI, cash flow and value creation. Occupancy is just the metric and obviously we care about driving ultimately EBITDA per square foot. So as you saw this quarter, the impact of Saks sequentially was about 45 basis points. We took back 150,000 square feet of Saks stores, about half which are currently temped and the other half which are vacant, about 70,000 square feet. We would expect our occupancy to seasonally build as it normally does through the balance of the year. And with our roll next year, we'll continue to look at opportunities to continue what we've been doing, which is actively remerchandising our space, weaving out lower productive and bringing in higher productive tenants that can pay higher rents. Operator: Our next question will come from Floris Van Dijkum from Ladenburg Thalmann. Floris Gerbrand Van Dijkum: A follow-up I guess on the impact of the Saks re-tenanting. Maybe if you could talk a little bit about the impact of potential re-tenanting on your cruising speed, i.e., your fixed annual rent bumps. Presumably Saks was paying not only a low rent, but also with very low escalators. Maybe talk about how you expect your cruising speed to increase and also what you're achieving in terms of your fixed CAM bumps these days? Michael Bilerman: So in terms of fixed CAM, we do get higher bumps on our fixed CAM relative to base anywhere from 100 basis points to 200 basis points greater. And then as you think about cruising speed or embedded growth, the Saks deals were very low rent paying as Doug outlined. And so the opportunity now is to take 150,000 square feet that's paying -- it's basically no impact this year, very limited and turn that into fully productive rent-paying space at market for those boxes. So that will just be part of the continuation of growing our NOI base. We do have about 20% roll every year and that serves as an opportunity to remark our space to market. We've been running at about 80% renewal rate and so depending on our leasing for next year, that will all effectively roll into our growth outlook. Right now our rents relative to sales continue to be low at only 9.7% and our sales have increased pretty meaningfully. And so our ability to capture that upside either by bringing in higher productive tenants or capturing the sales upside that our tenants are receiving and flowing that into our business and then trying to operate our centers the best that we can and drive as much upside in our revenue base as possible to continue to grow our NOI and value for stakeholders. Floris Gerbrand Van Dijkum: Let me try asking the question another way, Michael. Your tenant sales I think improved 4.7% this past quarter. Are you able to get those kinds of increases in your lease contracts or how much room do you have to push the annual escalators in your new contracts? Michael Bilerman: If you look at our strategy, we kept our renewals shorter, right? The average term, if you look at the supplemental on Page 12, our renewals have averaged 3.5 years. Our new leases have been an average of 9 years. And that sales productivity number reflects the tenants going out and their lower sales productivity as well as the tenants that are rolling in. Obviously those that are rolling out may have a higher occupancy cost than those that are lower. It may not be working for them. So I wouldn't correlate exactly one to the other. But over the long term our NOIs have a gravitational pull towards the overall sales level. And so we feel our mark-to-market given our shorter duration is really what's driving NOI rather than the contractual rent bumps when we have so much rolling as well as still about 10 percentage points of CAM. Operator: Our next question will come from Richard Hightower with Barclays. Richard Hightower: Sorry about dialing in from phone here. Hopefully, you can hear me. You guys hear me? Stephen Yalof: Yes. Richard Hightower: Okay. Great. Yes. Maybe just following up on a similar line of questioning. Given the composition of what you've got rolling in the next couple of years and granting that there is obviously a range of sort of tenant sales and sales growth within that. I mean is it reasonable to assume that continued double-digit spreads are achievable kind of given the moving parts as we understand them today? Stephen Yalof: Yes. We think our rents have a lot of run rate left in them for sure. If you think about the tenants that we keep on adding into the center, we're replacing poor performing retailers with better performing retailers. We just did our third round of Sephora deals. We're up to 14 Sephora stores across our portfolio where we replaced older poor performing $200 a square foot retailers with retailers doing business over $1,000 a square foot. That creates this great flywheel of growth. Our sales performance across our portfolio is up over $100 a square foot over the past 5 years. And as you look at occupancy cost ratio, the occupancy cost ratio is a reflection of our sales and rents. So if we've managed to keep our occupancy cost ratio pretty flat at that 9.7% number, but all the while growing our sales performance across our platform, embedded in that is our ability to continue to push our rents forward. Richard Hightower: Okay. That's very helpful. Maybe one on capital allocation as well. But obviously there's been a noticeable shift kind of in favor of more lifestyle center exposure in the portfolio. Is there a theoretical upper limit on what that might look like over time? And then maybe from our seat over on the analyst side, how should we think about sort of the risk of lifestyle versus traditional outlet in different economic environments? How should we think about cap rates? How do you guys think about kind of the risk and return profile just on a go-forward basis? Michael Bilerman: Yes. We don't have a target in mind. We're trying to buy the best centers, whether they're outlets or open our lifestyle centers. There's not an ideal mix. We approach every transaction and what value we can add to the asset and what value the asset adds to our portfolio. We're conscious of the difference in tenant base modestly. But I would say that we've benefited dramatically, as Steve talked about in his opening comments, about the cross-pollinization of tenants. Tenants that are in our outlet portfolio that find value in our lifestyle centers and vice versa, those that are in lifestyle finding us in the outlets. And so we underwrite risk appropriately and we believe the complements of the 2 asset classes are very synergistic given the tenant base is largely the same. The assets operate and have the same level of operating intensity. And the marketing aspect we feel is a really competitive advantage that we have built on the outlet front that has lent itself extraordinarily well to the lifestyle centers that we've acquired. And so we'll continue to evaluate the opportunities and ultimately to create value for stakeholders. Operator: Our next question will come from Andrew Reale with Bank of America. Andrew Reale: Maybe if we could just jump back to the consumer and tenants for a second. I'd just be curious any more detail on what you've been kind of hearing from retailers in conversation just in terms of early indications on how back-to-school has been and sort of what retailer outlooks are for the balance of the year maybe through the holiday season? Stephen Yalof: We look at our outlet platform as the destination for back-to-school shopping. Back-to-school is the second biggest shopping holiday of the year. A lot of our promotional dollars, particularly in the outlet space, are geared towards driving that customer into our centers for that period of time. The customers that shop our centers particularly in the outlet space are looking for their famous brands, but for the best possible price. And a lot of the initiatives that we're doing around back-to-school and early back-to-school shopping gives those shoppers not only the values that you get in store, but additional value for being members of our club; our loyalty club and our TangerClub, which is over 12 million people right now. So the consumer is definitely going in with their dollars. Our traffic has been up for the quarter. Our sales performance continues to grow. And we continue to bring the brands to the consumer that they're looking for, younger brands for a younger consumer. We're finding that Gen Alphas and the next generation of consumers are the cohort that want to shop in center the most right now. So brands like Sephora, Ulta, Miss A, which we've just added a couple of Miss A stores. They're looking for health and beauty products at a price point that makes sense for them. They continue to shop Athleisure. We've got a whole host of Athleisure brands and continue to grow that cohort of brands as well. And then they're looking for experience and experience can come from the entertainment that they get in the movie theater or in a swim school such as one that we just put in our center in Huntsville, but also from places like Coach Cafe, which offer a unique spin on their coffee and pastry offering that makes for Instagrammable moments for the folks that are coming in. We just put our first in our center that opened this quarter in Phoenix and just to incredible -- it's drawing incredible crowds. So our responsibility using our marketing to drive customers into our shopping center, our leasing team is doing an amazing job of bringing relevant brands to the center as well as uses that these folks are looking for has really created the opportunity for us to continue to be the destination for back-to-school shopping this summer and we don't see it slowing down going into the third quarter. Andrew Reale: Got it. Maybe sort of a follow-up on that. I mean I saw in the presentation non-apparel GLA is now 32%. That's up from about 19% several years ago. I guess what's the target mix for non-apparel tenants in terms of GLA? And how do non-apparel tenants, how they impact the productivity and traffic at your centers? Stephen Yalof: Yes, I think it's the diversity of uses that's really driving the traffic to the centers. And I think each center is unique because there's going to be markets like Sevierville, Tennessee that we reside on a street full of restaurant and entertainment. Our shopping center is very pure play. So that mix of alternative uses will probably be less than you might find in a Savannah where we seem to be the dominant shopping center in that market. We just added a Sandbox virtual reality. We just added the David & Buster's. So by center, we're going to merchandise those centers for the market, for the mix, for the crowd. We're going to listen to our customer, listen to what they want and we're going to execute accordingly. And our plan is to constantly drive new brands, new uses, new amenities, new fashion in order to create the best mix that's going to drive the most amount of traffic. I think we've been doing a really good job to date. And with the retailer open to buys don t seem to be slowing down, I think we're going to continue to do a great job into the coming quarters. Operator: Our next question will come from Todd Thomas with KeyBanc Capital Markets. Todd Thomas: I wanted to go back to Saks if I could. First, for the 3 boxes currently occupied by temporary tenants, are those temp tenants in occupancy at economics that would sort of equate to a similar 2 to 4x multiplier once permanently tenanted as you mentioned, Doug, or is there a greater opportunity from these boxes specifically? And then by definition, I suppose the temp tenants are expected to vacate too. When might you expect to recapture those 3 spaces? Doug McDonald: Sure. The good news is that even with temp tenants, we're able to effectively replace most of the rent that Saks was paying. So there is still a strong opportunity on the permanent re-tenanting from those boxes. From a timeline perspective, we're going to continue to evaluate the best options and not only on pure economics, but the merchandising fit for the center and how these new tenant prospects can help drive traffic and drive other leasing efforts around the center. I think you'll see a bigger impact on the '28 numbers than you will in '27 from the new permanent tenants coming in, but we're excited about the runway and the opportunity there. Todd Thomas: Okay. That's helpful. And regarding the time frame to re-tenant vacant spaces, I guess you just mentioned '28. You've talked about the speed and efficiency of re-tenanting space in the outlet format generally. But yes, these were larger spaces. You talked about potential plans to split some of these. So I guess the realistic time frame to recapture rent, would you expect any impact in 2027 or is this mostly 2028? Doug McDonald: '27 can have a minimal impact. But typically with our average square foot being around 5,000 feet, those are the ones that we can turn pretty quickly, 60 to 90 days to build out, get open. But with these boxes averaging 25,000 to 30,000 feet, it's just a longer time frame and it's also we want to make the right decision. If there's landlord work involved in splitting boxes, that adds to the timeline. There will likely be some permanent rent coming out of certain of these boxes next year, but it will be more weighted towards the back half of the year with a bigger impact felt in '28. Todd Thomas: Okay. And then just back to acquisitions. I was just wondering if you could talk a little bit about how the acquisition pipeline looks today. Just curious if the opportunities that you're seeing are improving? And can you also speak to cap rate trends, whether there's been any change in pricing as you're looking out at new opportunities? Michael Bilerman: I'd say the pipeline is very active. There is more things on the market today and we continue to build our off-market pipeline, looking for ways that we can leverage our platform to create value for stakeholders, whether the seller wants to stay in or not. We feel we have a really big competitive advantage with the platform that we've built. To your second part, it is competitive. You've seen cap rates compress and so that just means we have to be very disciplined in finding the deals that work for our stakeholders that ultimately create both financial and strategic value. And we are very pleased to have purchased Levis this past quarter and to have deployed almost $1 billion over the last 3 years at very accretive spreads. And that's what we'll continue to be focused on targeting both outlet, open-air lifestyle centers in both our existing and new markets. Operator: Our next question will come from Naishal Shah from Green Street. Naishal Shah: On the retailer demand side, I was curious if you could speak to how the pipeline for brands new to the outlet channel today compares versus prior years. Are you seeing more brands that historically haven't played much in this space look to increase their exposure to the outlet channel? Justin Stein: It's Justin. We are seeing tremendous demand in the outlet channel from new brands. The reality is that we are spending a lot of our time meeting and sitting with tenants that historically have not been with us in the outlet channel and educating them on how our evolution is going. As Steve has mentioned in the past, we continue to lifestyle our outlets and bring in brands. We talked about Sephora and Ulta and Victoria's Secret. We've added hard good brands like Serena & Lily, Pottery Barn, Williams-Sonoma continues to expand into our portfolio. And I think the one category where we see tremendous amount of runway, Naishal, is in the food, beverage and entertainment sector. Steve mentioned the swim school that we're adding and also Dave & Buster's -- Dave's Hot Chicken and more Shake Shacks. So everything that we're doing is trying to keep people on campus longer because we know the longer they stay on campus, the more they're going to spend. And we feel like we're doing a really good job educating the tenant community on how the outlet channel can provide that opportunity for them. Naishal Shah: And as you sit down with these retailers, is there a certain price point you target? Are you targeting kind of more in the middle market? Are you looking at semi-aspirational labels? Is there a certain kind of consumer that you'd like to get in your centers moving forward that are new to the outlet space? Justin Stein: We're always looking for a younger demographic consumer. But no, there's no exact target. At the end of the day, we have our ear to the ground on what the community wants in the centers that we operate in because it's really important. Those are the people that are going to come shop our centers. And so we are a very data-led leasing team. We rely on our data analytics to help drive our leasing decisions. And so at the end of the day, our strategic merchandising decision is geared towards that and we feel we do a really good job at leasing and merchandising to what the communities want. Operator: Our next question will come from Tayo Okusanya from Deutsche Bank. Omotayo Okusanya: Great quarter. I wanted to talk a little bit about again some of the marketing initiatives and some of the technology initiatives that you guys are undertaking to just drive more foot traffic to the outlets on the lifestyle centers. Curious when you guys are thinking about making these investments, how do you think around the kind of ROI or return hurdles before you kind of do a green light on any of these initiatives? Michael Bilerman: Sure. Well, let's start with the outlet business because I think it's really unique. A lot of the brands in the outlet business aren't using their marketing capital to get the consumer to come and shop their brand off-price. Because of that, traditionally the outlet developer has long been relied on in order to drive traffic to the shopping center. Because we've been in the business as long as we've had, we've done a really good job of building those muscles. The big evolution that we've seen in our company over the last 4 or 5 years is that evolution to more digital marketing. And I think the digital marketing is where we see the ROI because when you have digital messaging, you can be far more personalized, you can go after the customer that you're looking for. You can meet that customer where they consume that advertising information. But more importantly, there's attribution associated with a lot of that marketing so that when the customer receives messaging from us, they bring that messaging back when they shop, whether it's a coupon or it's a digital coupon or it's a QR code. We can then tie that sale, that purchase back to where that individual consumes that information and then we're able to apply a return on what we invest in that particular line of marketing. Operator: Our next question will come from Caitlin Burrows with Goldman Sachs. Caitlin Burrows: Maybe I was wondering if you guys could comment on TIs in the quarter and more broadly I know you guys, as you just discussed, have been shifting some of your mix over time. So wondering to what extent that is coming through in the necessary TI spend and/or what could be timing related going on also? Michael Bilerman: So I think if you focus on Page 10 and 12 in the supp, just from an overall TA second-gen CapEx, our second quarter was more elevated as we finished out a lot of the leasing that Justin talked about in terms of openings and we've reiterated our guidance for the year of $65 million to $75 million, which is about mid-teens percentage of our NOI, which has been relatively consistent over the last couple of years. When you look at the executed transactions on Page 12, you can see the net economics have been relatively steady with strong renewal spreads and TAs that are equivalent to just over a year of rent with very low capital cost on the renewal activity. The other aspect is we do a lot of noncomp leasing, which is why spreads are only one part of the equation. When you look at Page 12, you can see that we did 3.3 million of total leasing relative to $3 million of comp. which means there's another 300,000 square feet that we're-tenanting whether there is either vacancy or a temp in that space. And so that incrementally obviously is driving some tenant allowance on those deals, but is driving significant upside given that mark-to-market opportunity that exists. We'd expect the second half of this year to moderate from a total basis given that we're at about $37 million year-to-date. And as we re-lease some of the boxes, we should stay in that mid-teens to upper teens level with very strong returns on that investment. And overall, our capital as a percentage of our NOI remains very low relative to other forms of real estate and the retail peer set. Caitlin Burrows: Got it. And then another one that comes up frequently on the call so the answer might be related to timing. But it looks like both property and operating expenses and tenant reimbursements were high in the quarter even excluding the operating -- the extra expense related to tax. So I was wondering if you could talk about those 2 line items, if there was something driving them, if they stay high, new normal or more timing related? Michael Bilerman: So these numbers will bounce around quarter-to-quarter. I'd say on an expense recovery basis, we should be in that high 80s, low 90s for the entire year. So we were just maybe a tad more elevated in the second quarter. And you are correct in the property operating expenses, one that was that $1.3 million lease buyout fee and so that obviously doesn't reoccur as we go forward and we expect that tenant recovery rate to come down a little bit in the back half because our operating expenses are much higher in the second half than they are in the first half given all the holiday spend, all the marketing and all the things that we do in the fourth quarter when our centers are the most active from a traffic perspective. Operator: As there are no more questions, this concludes today's call. Thank you for joining. You may now disconnect. Before you buy stock in Tanger, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Tanger wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Tanger. The Motley Fool has a disclosure policy. Tanger (SKT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Tanger stock has delivered strong long term gains over the past five years, yet current checks suggest the shares now trade close to an estimate of fair value rather than offering an obvious discount. After this extended run, the question for investors is whether the current price still offers enough compensation for the risks in a traditional retail focused real estate portfolio. Tanger has returned 184.1% over the past five years, which puts extra focus on whether recent buyers are paying a full price for that track record. Recent strength in tenant sales linked to travel and back to school activity can support expectations for cash flows, while any slowdown in physical retail demand or leasing activity may weigh on future rent growth and valuation. The broader checks paint a mixed picture rather than a clear bargain or clear overvaluation, with Tanger scoring 3 out of 6 on value factors and a Discounted Cash Flow (DCF) estimate that sits only about 3.4% below the current share price. The stock's next move may depend on whether investors see Tanger's current price as an acceptable entry for fairly valued cash flows or prefer to wait for a wider gap to intrinsic value. Tanger delivered 28.7% returns over the last year. See how this stacks up to the rest of the Retail REITs industry. The Discounted Cash Flow (DCF) model for Tanger focuses on the cash the business can return to shareholders over time. For Tanger, the latest twelve month free cash flow sits at about $278 million, and the projections assume a relatively steady, growing cash flow profile rather than aggressive expansion or a sharp decline. That produces an estimated intrinsic value of about $40.68 per share. This compares to a current share price that is only about 3.4% below that DCF estimate, which points to Tanger trading very close to the modelled worth of its cash flows. Tanger’s recent guidance increase on funds from operations, helped by travel and back to school driven tenant sales, helps explain why the market price already sits near this intrinsic value mark. On this cash flow view, Tanger stock currently looks roughly fairly valued with only a small margin between price and intrinsic value. Tanger is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Tanger. P/E is usually a reasonable starting point for a REIT like Tanger because earnings per share are a key anchor for many investors. Tanger currently trades on a P/E of about 35.8x, which is higher than the Retail REITs industry average of 27.3x, yet slightly below the peer group average of 39.1x. The tailored fair P/E for Tanger is estimated at about 36.5x. That sits very close to the current multiple, with only a small gap between where the stock trades and where this framework suggests it might land, given its profile within Retail REITs. This is consistent with the cash flow analysis above, which also indicated limited distance between the prevailing price and an internally modeled value. On the P/E yardstick, Tanger stock appears roughly fairly valued rather than clearly cheap or expensive. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where Tanger's valuation puzzle leaves off and spell out what kind of future for growth, margins and earnings would need to play out for the stock to be worth meaningfully more or less than today's price. Each Narrative treats Tanger's fair value as a clear thesis about the business that you can keep coming back to and see how it holds up over time on the Community page. You can be one of the first voices in the Simply Wall St community to set out a clear, number driven Narrative on Tanger that weighs whether the recent outlook raise and tenant sales strength really justify today's valuation. Share your thesis now and track how it holds up as new results and retail data come through. Do you think there's more to the story for Tanger? Head over to our Community to see what others are saying! Tanger now screens as roughly fairly valued, with the Discounted Cash Flow (DCF) intrinsic value estimate sitting close to the current share price and the P/E multiple also landing near its tailored fair ratio. The mixed overall value checks mean the stock no longer looks like a clear bargain, but it also does not screen as obviously overvalued. From here, the real dividing line between bulls and bears is whether tenant sales and leasing conditions can sustain the cash flows and earnings that today’s valuation already builds in. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SKT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Tanger Inc.? Here are five stocks we like better. Tanger raised its 2026 outlook after Core FFO per share increased 10.3% year over year to $0.64 and same-center NOI grew 3.5% in the second quarter. Full-year Core FFO guidance is now $2.45–$2.52 per share, with same-center NOI growth expected at 2.75%–4.25%. Leasing and tenant demand remained strong, with 650-plus transactions covering 3.3 million square feet, a 10.5% blended rent spread and tenant sales up 5% to $487 per square foot. Occupancy was 96.6%, despite the recapture of Saks OFF 5th locations. Recaptured Saks space offers longer-term upside: about 70,000 square feet remains vacant, and permanent replacement rents could reach two to four times temporary rents, with most benefits expected in 2027–2028. Tanger also acquired Levis Commons, maintained net leverage at 4.7 times adjusted EBITDA and raised its dividend 7% year over year. Tanger (NYSE:SKT) raised its full-year 2026 outlook after reporting second-quarter growth in funds from operations, same-center net operating income and tenant sales, supported by leasing activity, tourism, marketing initiatives and acquisitions. Core FFO rose 10.3% year over year to $0.64 per share in the second quarter, while same-center NOI increased 3.5%, according to Michael Bilerman, Tanger’s executive vice president, chief financial officer and chief investment officer. The company attributed the NOI gain to higher base rents, tenant reimbursements and growth in other revenue streams. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Management raised its full-year Core FFO guidance to $2.45 to $2.52 per share from $2.42 to $2.50 previously. The new midpoint would represent 7% growth from 2025. Tanger also increased the low end of its same-center NOI growth outlook to 2.75% from 2.25%, while maintaining the high end at 4.25%. President and CEO Stephen Yalof said quarter-end occupancy was 96.6%, in line with the year-earlier level but modestly below the first quarter because of Tanger’s recapture of Saks OFF 5th locations. The company has backfill deals in its pipeline and is using temporary tenants in selected spaces while it pursues long-term leases. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Over the past 12 months, Tanger executed more than 650 leasing transactions covering 3.3 million square feet. Blended rent spreads were 10.5%, marking the company’s 18th consecutive quarter of positive rent spreads. Tanger said it has completed or is working on renewals for 70% of its 2026 lease expirations. Yalof said the company is replacing less productive tenants with brands and uses intended to broaden traffic and spending. He cited Sephora as an example, noting Tanger now has 14 Sephora locations across its portfolio and has replaced some retailers generating about $200 per square foot in sales with retailers producing more than $1,000 per square foot. → No Hangover: Revisiting Microsoft One Week After Earnings Tanger’s trailing 12-month average tenant sales reached $487 per square foot, up 5% from a year earlier. Its occupancy cost ratio was 9.7%, which management said provides room for additional rent growth. The top 25 tenants, representing more than 60 brands, accounted for about 50% of rent, down from more than 60% five years ago. Over that period, Tanger’s portfolio of brands has expanded to more than 800 from approximately 500. The company recaptured 150,000 square feet of Saks OFF 5th space, which reduced second-quarter occupancy by about 45 basis points sequentially. About half of the space is occupied by temporary tenants and about 70,000 square feet is vacant, Bilerman said. Doug McDonald, Tanger’s senior vice president of finance, capital markets and treasurer, said the former Saks rents were similar to temporary rents in Tanger’s portfolio. He said permanent replacement rents can often provide a two- to four-times multiplier compared with temporary rents, though Tanger did not provide specific lease rates for the locations. The company expects some spaces to be filled by single tenants and others to be subdivided for multiple users. Management said temporary tenants are effectively replacing most of the rent Saks had been paying, but permanent leasing will take longer because the boxes average roughly 25,000 to 30,000 square feet. Yalof said the impact from permanent replacements is likely to be weighted toward the back half of 2027, with a larger contribution in 2028. Yalof characterized Tanger’s consumer as resilient, citing increased domestic travel, World Cup activity and strong traffic during the summer. He said the company is seeing a younger customer base and has tailored leasing and marketing efforts toward that group. Tanger said traffic remained positive during the second quarter and continued into July and the back-to-school shopping season. Management said its TangerClub loyalty program has more than 12 million members and that personalized, AI-powered communications have contributed to higher email open rates, wallet downloads and shopper visits. The company is also expanding food, beverage, entertainment and service offerings. Executives said these uses can keep customers at centers longer and complement traditional retail tenants. Tanger cited additions including Dave & Buster’s, Dave’s Hot Chicken, Shake Shack, Sandbox virtual reality, swim schools and Coach Coffee Shop locations. Justin Stein, executive vice president and chief revenue officer, said Tanger is seeing demand from brands that historically had not operated in outlet centers. He cited Sephora, Ulta, Victoria’s Secret, Serena & Lily, Pottery Barn and Williams-Sonoma among brands expanding in the portfolio. During the quarter, Tanger acquired Levis Commons Town Center, an open-air lifestyle center in the Perrysburg submarket of Toledo, Ohio. The company expects a first-year return of roughly 8.5%. It is the seventh open-air center and fourth lifestyle center Tanger has acquired during the past three years. Bilerman said Tanger’s acquisition pipeline is active, though competition for retail assets has increased and cap rates have compressed. The company intends to remain disciplined and focus on transactions where it can use its leasing, operating and marketing platforms to create value. At quarter-end, net debt to adjusted EBITDA was 4.7 times, flat with year-end 2025 and below Tanger’s target range of five to six times. The company said all debt was fixed-rate, including swaps, with a weighted average interest rate of about 4% and a weighted average maturity of 3.3 years. Tanger ended the quarter with approximately $1 billion of liquidity and plans to use available capital to redeem $350 million of unsecured bonds maturing in early September. Tanger’s board authorized a quarterly dividend of $0.3125 per share in July, a 7% increase from the prior year. Bilerman said the payout ratio remained in the low-60% range. Tanger Factory Outlet Centers, Inc (NYSE: SKT) is a real estate investment trust specializing in the ownership, development and management of outlet shopping centers. The company's portfolio comprises more than 40 outlet properties anchored by leading fashion and lifestyle brands. Tanger's centers are designed to offer off-price retail experiences in open-air, community-oriented settings, providing value-focused shoppers with access to premium brands at reduced prices. Founded in 1981 by Stanley K. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Tanger Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by strong internal growth and accretive external acquisitions, resulting in an 18th consecutive quarter of positive rent spreads at 10.5%. Management is proactively recapturing large-format spaces, such as Saks Off 5th, to replace lower-productivity tenants with higher-demand brands that offer 2x to 4x rent multipliers. Strategic merchandising is shifting the portfolio toward a more diverse tenant mix, with the top 25 tenants now representing 50% of rent compared to 60% five years ago. Market dynamics are benefiting from a lack of new retail development and permanent population growth in mid-tier markets, which is exceeding national averages. The company is leveraging a 'lifestyle' strategy, acquiring open-air centers to cross-pollinate brands between traditional outlet and lifestyle formats. Operational efficiency is being enhanced through AI-enabled customer service tools that now handle the majority of all inquiries, freeing staff for higher-value work. Full-year 2026 guidance was raised based on year-to-date momentum, the Levis Commons acquisition, and a positive outlook for the back-to-school and holiday seasons. Management expects occupancy to build seasonally through the balance of the year, despite the temporary moderation caused by strategic lease recaptures. The re-tenanting of large-format boxes is expected to have a minimal impact in 2027, with the primary financial benefit realized in 2028 due to longer build-out timelines. Guidance assumes no additional acquisitions or dispositions, though management maintains a robust pipeline of both outlet and lifestyle opportunities. The company plans to utilize its $1 billion in liquidity to redeem $350 million in maturing unsecured bonds in September 2026 while funding internal expansions. Recaptured 150,000 square feet of Saks Off 5th space, resulting in a 45-basis point sequential moderation in occupancy. Property operating expenses in Q2 included a $1.3 million one-time lease buyout fee related to strategic space recapture. The acquisition of Levis Commons Town Center was completed with an expected first-year return of approximately 8.5%. Management noted that while the consumer remains resilient, they are monitoring potential headwinds from gas prices and interest rates. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management observed that high gas prices and interest rates are causing consumers to stay domestic, benefiting centers located in tourism-heavy mid-tier markets. A younger 'Gen Alpha' cohort is increasingly engaging with the centers, driven by new health, beauty, and athleisure brands like Sephora and Ulta. Approximately half of the recaptured Saks space is currently occupied by temporary tenants to bridge the gap until permanent deals are executed. Permanent replacements for these 25,000 to 30,000 square foot boxes will likely involve splitting spaces, with the full NOI impact expected in 2028. The acquisition pipeline is active, but management noted that cap rates have compressed as more capital chases retail fundamentals. Tanger is focusing on mid-tier markets where competition is less robust, allowing for more disciplined and accretive transactions. Digital marketing allows for direct attribution, enabling management to tie specific coupons and QR codes back to individual marketing spend. The TangerClub loyalty program has grown to over 12 million members, providing a proprietary data set to drive personalized, AI-powered messaging.

This article first appeared on GuruFocus. Core FFO: $0.64 per share for Q2 2026, up 10.3% from $0.58 per share in the prior year period. Same-Center NOI: Increased 3.5% for the quarter, driven by higher base rents and tenant reimbursements. Occupancy: 96.6% at quarter end, in line with the prior year. Blended Rent Spreads: 10.5%, marking the 18th consecutive quarter of positive rent spreads. Average Tenant Sales: $487 per square foot on a trailing 12-month basis, up 5% year over year. Occupancy Cost Ratio: 9.7%. Net Debt to Adjusted EBITDA: 4.7 times at quarter end, flat with year-end 2025. Weighted Average Interest Rate: Approximately 4%, with 100% of debt at fixed rates. Total Liquidity: Approximately $1 billion at quarter end. Dividend: Quarterly dividend of $0.3125 per share authorized in July, a 7% increase over last year. Full-Year 2026 Core FFO Guidance: Raised to $2.45 to $2.52 per share, up from $2.42 to $2.50 previously. Full-Year 2026 Same-Center NOI Guidance: Low end raised to 2.75% from 2.25%, with the high end unchanged at 4.25%. Warning! GuruFocus has detected 8 Warning Signs with SKT. Is SKT fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Tanger Inc (NYSE:SKT) raised its full-year 2026 core FFO guidance to $2.45-$2.52 per share, reflecting a 7% growth at the midpoint, driven by strong internal and external growth. The company reported a 10.3% increase in core FFO per share to $0.64 for Q2 2026, and same-center NOI grew 3.5%. Leasing momentum remains robust with blended rent spreads of 10.5%, marking the 18th consecutive quarter of positive spreads, and over 650 transactions executed in the last 12 months. The acquisition of Levis Commons Town Center is expected to deliver a first-year return of roughly 8.5%, adding to a portfolio of seven open-air centers acquired in three years. The balance sheet is well-positioned with net debt to adjusted EBITDA at 4.7 times, 100% fixed-rate debt, and approximately $1 billion in total liquidity, supporting future growth initiatives. Tenant sales productivity reached $487 per square foot, up 5% year-over-year, while the occupancy cost ratio remains low at 9.7%, indicating significant upside potential for rent growth. The company is successfully diversifying its tenant base, with the top 25 tenants now comprising about 50% of rent, down from over 60% five years ago, and the portfolio has grown to over 800 brands. Strategic recapture of SACS space is expected to create value, with backfill deals in the pipeline and temp tenants bridging select spaces, offering potential for significant rent increases. The company is leveraging AI-powered marketing and customer service tools to drive engagement, resulting in higher open rates, wallet downloads, and shopper visits. Traffic remained positive in Q2 and continued into July, supported by strong back-to-school promotions and increased tourism, including the World Cup and upcoming attractions like the Chiefs Stadium and Sphere Development. Occupancy slightly moderated to 96.6% in Q2, reflecting the proactive recapture of SACS space, which could temporarily impact revenue. The SACS recaptured boxes are large (25,000-30,000 square feet each), and permanent re-tenanting is expected to take longer, with a more significant impact on results not expected until 2028. The company faces a competitive acquisition market with cap rates compressing, requiring disciplined underwriting to find accretive deals. Property operating expenses were elevated in Q2, partly due to a $1.3 million lease buyout fee, which could pressure margins in the short term. Net interest expense expectations have increased modestly due to the Levis acquisition and changes in the forward curve, potentially impacting future earnings. The company's guidance does not assume any additional acquisitions, dispositions, or financing activity, limiting potential upside from external growth in the near term. While the consumer remains resilient, there are potential headwinds from higher gas prices and interest rates, which could impact discretionary spending. The re-tenanting of SACS space involves significant CapEx, and the timeline for full rent recovery is extended, with some impact expected in 2027 but more in 2028. The tenant watch list, while at low levels, remains a focus, and the company must continue to manage credit risk among its tenants. The shift towards lifestyle centers and non-apparel uses requires ongoing investment and adaptation, which may carry execution risks in different economic environments. Q: Can you comment on the health of the consumer in your portfolio, especially given elevated gas prices, and whether you've seen a shift in customer behavior?A: Stephen Yalof (President and CEO) stated that the customer is quite resilient, especially this year. Higher gas prices and interest rates have caused many to stay domestic, which, coupled with the World Cup, has driven robust traffic. He highlighted a much younger customer cohort shopping at their centers, driven by marketing and leasing to relevant brands. He also noted the strong movie business is bringing customers in earlier and keeping them later, with the new merchandising mix of restaurants and services acting as a great draw. Q: On the SACS locations, how far below market were those leases, what type of large-format customers could be additive, and what are the CapEx needs?A: Doug (Unidentified_3) explained that the recaptured SACS rents were similar to temporary rents in the portfolio, providing an opportunity for a two to four times multiplier on new rents. Some spaces will be single-user replacements, while others will be multi-tenant. CapEx needs will depend on the use and whether boxes are split, but the overall economics provide a significant return on investment. Q: Given the composition of leases rolling in the next couple of years, is it reasonable to assume continued double-digit rent spreads are achievable?A: Management (Unidentified_16) affirmed that rents have a lot of run rate left. They are replacing poor-performing retailers with better ones, citing the example of adding 14 Sephora stores that replaced $200 per square foot retailers with those doing over $1,000 per square foot. With occupancy cost ratios flat at 9.7% while sales grow, they have the ability to continue pushing rents forward. Q: What does the transaction market look like for both outlets and lifestyle centers, and how is Tanger positioned to capitalize on external growth?A: Michael Bilerman (CFO and CIO) stated the pipeline is very active with more things on the market. They leverage their leasing, operating, and marketing platforms to create value that others may not see, focusing on mid-tier markets with less competition. While it is competitive and cap rates have compressed, they remain disciplined and are pleased to have deployed almost a billion dollars over the last three years at very accretive spreads. Q: How should we think about the impact of SACS re-tenanting on cruising speed and fixed CAM bumps?A: Michael Bilerman (CFO and CIO) noted that fixed CAM bumps are 100 to 200 basis points greater than base rent bumps. The SACS deals were very low-rent paying, so the opportunity is to turn 150,000 square feet into fully productive, market-rate space. With about 20% of the portfolio rolling every year and an 80% renewal rate, they can continue to remark space to market, especially with occupancy costs at only 9.7%. Q: Can you provide an update on the Legends acquisition in Kansas City and any significant changes or upgrades underway?A: Doug (Unidentified_3) reported being really happy with the performance so far. It's a great asset with strong demand drivers in the market. They have had good traction on the leasing side, found efficiencies on the operating side, and are excited about the value creation opportunities that will continue to present themselves. Q: On the ancillary income line, can you size the long-term opportunity on marketing, events, and loyalty initiatives?A: Michael Bilerman (CFO and CIO) explained that other revenue streams equate to almost half a million dollars per center on average. There are opportunities to grow these lines, especially in acquired deals like Kansas City, where old static advertising can be enhanced. They are also adding services like EV charging and solar to generate additional income beyond leasing, which is a key part of their value creation strategy. Q: How are you thinking about bad debt levels and tenant watch list trends for next year?A: Michael Bilerman (CFO and CIO) stated they will continue to approach the market conservatively and evaluate things on an ongoing basis. The watch list remains at low levels as some tenants have rolled off, and overall demand levels are positive, but they continue to ensure they understand their credit levels. Q: On the retailer demand side, how does the pipeline for brands new to the outlet channel compare to prior years?A: Justin (Unidentified_21) stated there is tremendous demand from new brands. They are educating tenants historically not in the outlet channel, adding brands like Sephora, Ulta, Victoria's Secret, Serena and Lily, and Pottery Barn. The biggest runway is in food, beverage, and entertainment, with additions like swim schools, Dave & Buster's, and Shake Shack, all aimed at keeping people on campus longer. Q: How do you think about the ROI or return hurdles for marketing and technology initiatives to drive foot traffic?A: Stephen Yalof (President and CEO) explained that the evolution to digital marketing is where they see ROI. Digital messaging allows for personalization and attribution, enabling them to tie sales back to specific marketing campaigns. This allows them to apply a return on investment to each marketing line, a significant advantage over traditional methods. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus. Core FFO: $0.59 per share, up 11% from the prior year. Occupancy Rate: 97%, up 120 basis points year-over-year. Sales Productivity: $482 per square foot on a trailing 12-month basis. Dividend Increase: 7% increase announced in April. Leases Executed: 651 leases totaling 3.4 million square feet in the last 12 months. Blended Rent Spreads: 10.5% with retenanting spreads exceeding 26%. Same-Center NOI Growth: 2.6% increase, excluding lease termination income. Net Debt to Adjusted EBITDA: Approximately 4.8 times. Interest Coverage: Strong, with all debt at fixed rates and a weighted average interest rate of about 4%. Liquidity: Over $1 billion of immediate liquidity available. Full Year 2026 Core FFO Guidance: $2.42 to $2.50 per share, representing 6% growth at the midpoint. Same-Center NOI Growth Guidance: 2.25% to 4.25% for the year. Warning! GuruFocus has detected 7 Warning Signs with SKT. Is SKT fairly valued? Test your thesis with our free DCF calculator. Release Date: May 01, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Tanger Inc (NYSE:SKT) reported a strong first quarter with core FFO of $0.59 per share, an 11% increase from the previous year. Occupancy rates improved to 97%, up 120 basis points year-over-year, indicating strong demand for their retail spaces. The company announced a 7% increase in dividends, supported by earnings growth and conservative payout ratios. Tanger Inc (NYSE:SKT) executed 651 leases totaling 3.4 million square feet over the last 12 months, with retenanting spreads exceeding 26%. The company has over $1 billion in immediate liquidity, providing significant flexibility for future investments and growth opportunities. The quarter's NOI growth was impacted by elevated snow removal costs, which affected same-center NOI growth. Retention rates are expected to be around 80%, the lowest in the past five or six years, due to strategic retenanting efforts. The macroeconomic environment remains uncertain, which could impact future sales and leasing activities. The company faces challenges from department store closures, which could affect traffic and sales in certain areas. There is a broad range of outcomes for same-center NOI growth, indicating potential volatility in future performance. Q: Do you expect retenanting spreads to continue in the mid-20% range through the year, and what is the current retention rate? A: Stephen Yalof, President and CEO, stated that they are optimistic about driving rent in their shopping centers due to strong sales performance. The current retention rate is anticipated to be about 80%, the lowest in five or six years, as they see great upside and opportunity with a deep pipeline of tenants wanting to be in their centers. Q: Can you quantify the impact of snow removal on same-store growth and discuss the range of outcomes for same-store growth guidance? A: Michael Bilerman, CFO, explained that snow removal impacted same-center growth by about 100 basis points in the first quarter. The guidance range of 2.25% to 4.25% remains, with variability expected due to operational intensity and macroeconomic uncertainty. Q: How does the partnership with youth sports initiatives like Ripken Experience influence your strategy, particularly in food and beverage? A: Stephen Yalof highlighted that the partnership with Ripken Experience aligns with their strategy to enhance food and beverage offerings, as these attract families between games. This strategy has been successful in increasing customer visits and dwell times, contributing to sales growth. Q: Are higher gas prices affecting shopping patterns or customer behavior at your centers? A: Stephen Yalof noted that despite higher gas prices, customer resilience has been strong, with increases in sales and traffic. The shift to being a local shopping destination has mitigated the impact of gas prices, and their value proposition continues to attract customers. Q: What opportunities exist for external growth, and how does the transaction market look for outlets versus lifestyle centers? A: Michael Bilerman stated that their pipeline remains active across both outlet and lifestyle centers. They focus on assets where their platform can add value, looking for growth opportunities rather than just initial yields. The market is competitive, but they are optimistic about finding accretive growth opportunities. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. May 1, 2026, 8:30 a.m. ET President & Chief Executive Officer — Stephen Yalof Executive Vice President & Chief Financial Officer — Michael Bilerman Executive Vice President — Ashley Curtis Executive Chair — Steven Tanger Executive Vice President — Justin Stein Need a quote from a Motley Fool analyst? Email [email protected] Stephen Yalof: 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. Core FFO was $0.59 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 the core point that our 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 8 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, blended rent spreads of 10.5% reflect ongoing strength with retenanting 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 users, 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 centers are on the itineraries of thousands of young athletes and their families traveling to our markets. 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 nonretail 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 are 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 brand 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, Tanger's value proposition continues to resonate with shoppers and retailers alike. Our open air centers, 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 and 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. Michael Bilerman: Thank you, Steve. For the first quarter, core FFO was $0.59 a share compared to $0.53 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% and 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 4.8x and our interest coverage remains strong. All of our debt is at fixed rates, inclusive of our swaps and with a weighted average interest rate of about 4% and a weighted average term to maturity of approximately 4.5 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 and 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, advantage 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 totaled $300 million in the summer of 2027 and no other significant maturities until 2030. And now 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 2.25% to 4.25% 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 prudent 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. Operator: [Operator Instructions]. And our first question comes from the line of Andrew Reale with Bank of America. Andrew Reale: First, just on the leasing side. I mean, demand seems to be continuing unabated. That's obviously supporting your remerchandising efforts. So first, do you expect retenanting spreads can continue to sort of run in this mid-20% area through the balance of the year? And then just on retention, Remind us what the retention rate is today. And when might you start to manage retention back up to historical levels? Stephen Yalof: Thanks for the question. With regard to spreads, we're very optimistic about our ability to drive rent in our shopping centers. As sales continue to perform the way sales are performing, I think that gives us the opportunity to continue to grow our rents. With regard to I guess, the second half of your question? Sorry, Andrew. Ashley Curtis: The second half. Well, you've been running reductions for. Stephen Yalof: Our current retention, we're anticipating about 80% of our to renew about 80% of our roll this year, which is probably the lowest it's been in the past 5 or 6 years. just because we see great upside and great opportunity. There's a very deep pipeline of tenants that want to be in our shopping centers. And we're going to take advantage of that opportunity. Our retenanting spreads are far higher than our renewal spreads. So in this environment, with limited new development and department stores in many of our geographies closing. We understand the retailers really want to put their brands in front of the customers, and we think our open-air shopping center platform is exactly in place that they want to do it. Ashley Curtis: Okay. And then maybe just on the same-store growth. You noted that was burdened by snow removal in the quarter, which was no surprise. But I'd be curious if you could quantify where that same-store growth would have been ex the snow removal. And then your range still implies a somewhat broad range of outcomes. So I was wondering if you could maybe speak to some of the swing factors that could still drive you to the high or low end of your same-store range through the balance of the year. Michael Bilerman: Thanks, Andrew. So the snow relative to last year you've [indiscernible] about $0.01 that impacted it year-over-year. So probably about 100 basis points to that same center growth in the first quarter. As you saw, the expense growth was about 4%, and we've been able to keep our expenses at pretty low levels. As you mentioned, that was contemplated in the full year guide, which is why the 2025 and 4.5% has maintained. At this point of the year, it's still early, and we have a lot of confidence in our business, a lot of confidence in the range. We still run a very operationally intensive business. So as we move through the year, there's going to be some variability still on sales. As you saw in the first quarter, our percentage rents were up, but there's still uncertainty as we move through the year. There's obviously still as we are retaining a lot of space, the downtime and the ability to bring those tenants in on time. We still have an uncertain macro environment. And so there's things that could take us at each part of the range. But as we sit here today, we're optimistic that we can continue to deliver solid growth. And with the amount of leasing that we've done, we'll be able to update you in 90 days. Operator: The next question is from the line of Craig Mailman with Citi. Craig Mailman: I know you touched on the higher lease termination fees really just being part of that intentional remerchandising effort. Could you just walk through how much of that is sort of F&B related as you guys progress that initiative versus just traditional retail and kind of what the as you guys are looking at that, the NPVs that you're looking at to take, I know your downtime is less than others in your space, but even so the downtime, the TIs, can you just kind of walk through the economics of that thought process? Michael Bilerman: Sure, Craig. I think you hit it at the beginning that these are deals that we have to agree to. These are negotiated transactions where a tenant has a lease. And if they want to get out we have to come to an agreement of value that we want to get out of it. And if we have certain opportunities. We're going to take that advantage to get an NPV for a significant amount of the rent that's due to us under the lease. And so in this case, there's not a lot of space but it had some term in credit, and we were able to bank that and then go ahead and release the space. Our TAs are pretty low relative to other asset classes. And so that term fee allows us to fund that and then be able to create growth with a better tenant down the road. Craig Mailman: And then just on the F&B side, I mean part of that question was just how much of it is that initiative? And I guess, IND baseball partnership, things like that, where these sports initiatives, I'm assuming part of that appeal is the F&B part. I mean I know the retail is also interesting to them as they try to kill tie between games and things. But kind of what's the -- as you guys craft those partnerships, like how much is the move towards F&B a bigger piece of that as you guys trying to get that type of customer in the door. Stephen Yalof: So for us, I think 1 of the things we've been talking about with regard to the evolution of our portfolio over the past 5 or 6 years, was that as demographics have shifted. Our centers have become a little bit more of the go-to local shopping destination for the communities that we serve. And in light of that, we found that, that consumer is looking for a lot more than just a shopping experience when they come and they visit us. So using peripheral and, in some instances, some of the in-line space to create food and beverage opportunities has served us extraordinarily well because we're seeing customers come in and take on multiple visits. So that would be a piece of our business has been a really important strategy. As we talk about the Cal Ripken partnership where we have a lot of overlap between where they have their setups and where we have shopping centers across the country, I get a prudent beverage part of our shopping center platforms is critically important. Because we'll get those families in between games that want to come to our properties. They'll want to shop, but they'll also want to place to dine and be entertained. So that plays perfectly into the strategy that we've been executing to for the past number of years, we can now take advantage of it because we're able to provide that customer and the families, the things that they're looking for as they have some downtime. So it's been turned out to be quite a fruitful partnership and one1 that we're looking to grow this year and in future years. Operator: Our next question is from the line of Michael Griffin with Evercore. Michael Griffin: Steve, I'm curious if you can expand a bit on to any insights into shopping patterns or customer behavior you're seeing at your centers. Just given higher gas prices over the past couple of months, is there a worry that a sustained increase here could impact demand for shopping at your centers? Or have you not seen that so far? Stephen Yalof: Well, I'm really impressed with how resilient our customers have been. We went into 2026, thinking that we had a whole host of tailwinds that we're going to serve as a great increase to both traffic and sales. And I guess with the crisis of the Middle East and gas prices being what they are, that being we still were able to drive an increase in sales and an increase in traffic in the first quarter. So the resiliency of the customer has been a wonderful thing. I think it goes back to what I said to Craig in the previous question, we're no longer just reliant on that drive to tourist customer coming to our centers where that gas price issue was a much bigger issue in years past. Now because we're part of that local shopping experience for a lot of our customers. I think the gas issue as far as where they choose to travel has been somewhat mitigated. Obviously, everybody is still competing for share of wallet. So as gas prices go up and our customer becomes more constrained. Thankfully, our shopping centers or from value every day. And I think that value proposition where our customers, which are typically an aspirational customer, they're looking for the brands they love at the best possible price every day, and that's what we offer across our portfolio. Michael Griffin: Steve, that's very helpful. Maybe switching to external growth next. Michael, I'm curious, it looks like the balance sheet is primed to go on offense, given the capital markets execution at the beginning of the year. Can you talk a little bit about the opportunity set in the transaction market today? Are you seeing more deals on outlets versus lifestyle centers? And can you talk about what returns you're underwriting to maybe relative to your cost of capital? Michael Bilerman: Thanks. Our pipeline remains active, and it remains active across the two unique verticals that we are active in, which are both complementary and synergistic to each other between the outlet business and the open-air lifestyle business. And where we're really leaning in is where our platform can add value. Where can we see value from our leasing, operating and marketing platforms and what can we do to drive value of that asset from an asset management perspective. We're optimistic that we can continue to find opportunities but we're not programmatic. It's a big country, and we'll announce deals when we do them. What we're really looking for, Griff, is the ability to go into an asset. It's not that initial yield. It's the growth that can be attained over time so that we're driving an attractive return on our invested capital. I would say there's more product coming to market as I think retail overall, there's a lot of positives that you're seeing from a demand perspective. Obviously, you know about the low supply and generating the returns relative to other asset classes, there's definitely more interest. We think we are pretty unique as an owner operator to be able to come in to certain assets and drive growth overall. Unknown Executive: To share a little bit on the leasing between the two platforms. Yes. So from the standpoint of just -- look, we have a tremendous amount of demand in both platforms. And being involved in the lifestyle platform has absolutely opened up the ability to bring some of those brands that historically have not been in the outlet channel into the outlet channel. And as you know, Michael, we are hybrid-ing some of our assets on the outlet side. And we're seeing great sales increases. We're seeing, as Steve mentioned, an increase in traffic, and that has to do with us having that blend of both full price and all. Operator: Our next question is from the line of Juan Sanabria with BMO Capital Markets. Juan Sanabria: Just hoping you could talk a little bit about the bankruptcies or closures and how that may affect results or the trends of growth in same-store and otherwise, for the balance of the year, given what's been announced today and how we should incorporate that in our forecast. Michael Bilerman: Thanks, Juan. As we discussed last quarter, our range contemplated range, our guidance range had a range of credit outcomes. And at that point, we obviously knew about any Bower, Francesca's and Saks. I think you saw some of that impact in the first quarter. where those bankruptcies happened, but the other part is if you look at our leasing activity, we've already executed more of our renewal activity than we did last year. And as Steve talked about in the opening comments, we've already executed backfield deals either on a permanent basis or a short-term temp basis for a lot of that space. And so our guidance range of 2.25% to 4.25% still contemplates and takes into account all of these risks. And I would just say from a cadence perspective, we would expect 2Q to have most of the brunt of that those tenants have come out, we put temper firm as those come into the back half of the year. And so you may just see a little bit of a different seasonal impact as we move through the year, but coming out with pretty attractive growth at 3.5% at the midpoint. Juan Sanabria: Okay. So the cadence of the second quarter it would be both on occupancy and same-store NOI or just to confirm. Michael Bilerman: You see it more on same center than you will in occupancy because occupancy is period end, and we may have temp in there, but just from the timing during the quarter, you may see some of that from a revenue perspective as we build that firm and rent basis through the end of the year. Juan Sanabria: Great. And then just as a follow-up, you mentioned the closures of department stores as a benefit to your centers. Just curious if you have any case studies what a department store closure in your trade area where there's an overlapping Tanger Center has meant for sales or for traffic? Anything that you could highlight as -- and as an output of what we're seeing with the consistent kind of closures and whittling down of the department stores? Stephen Yalof: Yes. Look, when we saw -- particularly in the Southeast, where we have most of our shopping centers, we saw over the past couple of years, closing some of the majors, those brands are looking for a place to replace that sales volume. In some of the markets, the only place to do so is in one of our shopping centers. places like between Hilton Head and Myrtle Beach, Daytona, Florida, Charleston, Savannah, A lot of those centers were built 15 or 20 years ago where they didn't have sort of proximity to the large regional shopping centers because the retailers wanted to -- we're concerned about that wholesale sensitivity. Now what we're finding is people are moving closer and closer to those geographies and looking for those particular brands and the stores that they were shopping have started to close we see either retailers getting bigger in our centers or opening up new stores and taking their footprint -- making their footprints larger and larger across our portfolio. Operator: Our next question is from the line of Greg McGinniss with Scotiabank. Greg McGinniss: So it's no secret that the acquisition environment is particularly competitive right now, but we've also seen your weighted average cost of capital improved with the higher equity value, strong balance sheet. Can you give a little more color on transaction market? Are you seeing much worth acquiring? What makes the asset attractive to you today? And what sort of cap rates or IRRs are you targeting? Michael Bilerman: Thanks, Greg. The market is competitive, but at the same time, there's more product on the market. And so I think you have those two things going at the same point. And at our size, we don't have to do a lot. We're just over a $6 billion company. And if we're able to find really interesting, unique assets that fit our platform and when you look across our 41 assets, we're in a lot of places that other people aren't. We operate with boots on the ground at every single one of our assets. These are very operationally intensive assets that are supported by a national platform that has deep experience from a leasing, operating and marketing perspective. And we think that's a big competitive advantage when we look at assets within the outlet side of our business as well as open air lifestyle, and we're optimistic that we'll be able to continue to find product to grow this platform accretively. And as you said, our cost of capital has improved, but at this point, we're sitting on significant both leverage capacity being down at 4.7%, 4.8% from a debt-to-EBITDA perspective. but also from just a pure liquidity perspective, with over $1 billion of immediate liquidity, we have the ability to deploy capital without the need to raise additional at this juncture. Greg McGinniss: Okay. And then where do you see the biggest opportunities kind of within the portfolio to improve tenant offering over the next few years? And given the level of demand that you're seeing, does this open up additional potential densification or redevelopment opportunities? And I guess following along with that, where do you see as the kind of minimum underwriting threshold for that type of investment? Stephen Yalof: I'll let Michael talk about the investment side, but just the opportunities. I think we still have a lot of opportunity in our organic portfolio. So as we're incredibly active out in the acquisitions market right now, as Michael just talked about, the ability to take whether it's a Saks box or repurpose some of these stores that have closed due to bankruptcy or as I talked about at the beginning of the call that we're at an all-time low in terms of our retention rate we're creating these new opportunities across our portfolio because we're at a point in time where retailer demand is high and demand and supply of space is low. So where our retenanting spreads far ops renewal spreads and we've got the opportunity to leverage our capital in order to make some of these changes across our portfolio, we're extraordinarily active. Leasing at 3.4 million square feet over the past year is an all-time high. I think that's reflective of the tenant size market. So we're very active. We're playing in that arena in a big way. And from an organic point of view, I think there's a lot of growth potential for us downstream. Michael Bilerman: Yes, Greg, I think we -- as the portfolio has continued to improve from a merchandising standpoint, that gets more opportunity. And the other factor that's coming in is the markets that we operate in have seen significant population growth. When you look at our entire portfolio, we've grown the national average and within the local parts growing even faster than the MSA. So as we invest capital, we see a very positive double-digit returns as we invest that capital to either densify, whether it's on our peripheral land or redevelop within the center to create even more space for our tenants. Operator: Our next question is from the line of Caitlin Burrows with Goldman Sachs. Caitlin Burrows: I guess you just went through how you don't need to raise equity at this point, which makes sense. I'm just wondering if you could go through maybe what situation or conditions would make you issue again, given where leverage is, is it really dependent on acquisitions? Or yes, what could drive that in the future? Michael Bilerman: Follow about being prudent and disciplined and depending on the level of external growth, we would look to obviously maintain a conservative balance sheet. As we sit here today, as you know, we're generating between $80 million and $100 million of free cash flow after our dividends. We're growing our EBITDA. So there is natural built-in leverage capacity or capital capacity even if we don't raise equity. And if you think about, we've deployed $800 million over the last 3 years, we've only -- we've raised small amount of equity relative to that size as we've taken advantage of that free cash flow and EBITDA growth and actually over the last number of years, we've actually delevered a half a turn. So we feel good about where we are, and we would look at equity at that time depending on where the market is. Caitlin Burrows: Okay. Got it. And then maybe, again, on the leasing side, you guys talked about how you're kind of managing retention because the interest in the tenants is so high. Could you give some more color on which kind of tenants that are driving that retenant and activity? And then as you think of all the properties you own, are you seeing that interest kind of trickle down further into maybe some of the properties that are not your top performers? Stephen Yalof: Yes, Caitlin, it's -- we talked about our -- we have about 67% of our renewals done, and that was a strategic and surgical approach this year because we have tremendous demand with new brands that want to be in our portfolio. And so we jumped out in front of it. We got a lot of it done. So the team can focus on the new business. And as you know, we've put a lot of effort and time and power behind our expansion with food, beverage and entertainment. If you go back to 2019, where our portfolio was very heavy, footwear and apparel is about 80% of our tenant mix. It's now down to 70%. It's because we're going after entertainment brands. We're going after health and beauty brands, we mentioned food HomeGoods is a growing category in our portfolio. So there's a lot of demand. We're going after the retenanting, the returning spreads, as you know, are higher than our renewal spreads. So that's where our strategy is. And we're going to continue to go after that because that's where we see the greatest opportunity to grow NOI. Operator: Our next question is from the line of Todd Thomas with KeyBanc Capital Markets. Todd Thomas: I guess sticking with that last line of questioning or the discussion there, Justin, can you talk a little bit more about that mix today between some of the traditional outlet retailers and mixing in some of the full price or non-outlet retailers, what that mix looks like today, how it's sort of evolved over the last, say, 2 years or so? And then how much does that equation tilt over time across the portfolio toward non-outlet or full-price tenants? Stephen Yalof: Yes. So we look at every one of our properties on a market-by-market and case-by-case basis. You take an asset like Deer Park, Long Island, where it's a very densely populated community that we serve. That property has the opportunity to be more hybrid in nature versus you take a center like severe ville, Tennessee, where that is a power shopping outlet experience. So we look throughout our portfolio, to, and we're going to determine which centers have the opportunity to be more hybrid and bring in some more of that full price mix. But we also have to keep in mind, it's very important. Our consumers come to our centers and they're looking for the world's best brands at the best possible value. So that's on us to determine the right mix type of full price in the outlet channel, and we're going to do that on a case-by-case basis throughout the portfolio. Todd Thomas: Okay. And does this change the way we should think about the portfolio's occupancy cost ratio target over time? I think we used to talk about the portfolio sort of being in the maybe 12% or 13% range. It's 9.7% today. As we think about that long-term target bringing in more non-outlet retailers does that sort of change the formula for the way we should think about the portfolio and potential for rent upside over time? Stephen Yalof: Yes, it does. I think at 9.7%, I think there's still a lot of headroom for us to continue to grow rents. You got to remember, our 9.7% has stayed flat, but our sales performance has gone up. So that still means that our NOI continues to grow, but we're going to continue to push rents. We see that opportunity by replacing a lot of the underperforming retailers with better performing retailers. We talked I guess, a year ago about Sephora coming into our portfolio, and they are delivering on the sales line. And if you take a look at who they replaced, we're seeing great sales upside opportunity. that sales per square foot is the number upon which the OCR is based. And as we continue to grow our sales performance on a per square foot basis and drive rents, it has a multiple effect on our ability to grow NOI Todd Thomas: Right. What have OCRs look like on like new lease deals, say, over the last 12 months on a trailing 12-month basis? Is there a way to quantify that and help us just kind of understand where new lease deals are getting executed? Stephen Yalof: Todd, it's going to be a range of different OCRs there depending on the type of industry or use of these tenants, depending on the center, depending on how we view the tenant at the center. There's a lot of different factors that are going to go into that. And so it's hard to give an average on those, but we definitely see upside opportunity relative to the in-place OCR across the portfolio. Operator: Our next questions are from the line of Floris Van Dijkum with Ladenburg. Floris Gerbrand Van Dijkum: Pretty fulsome answer so far. Maybe a question on your assets, I think, that are going to see some significant as a landlord, you always want other people to invest right next to you. As you think about your Kansas City and your National Harbor assets. Maybe you can talk a little bit about what you're seeing there and what the potential is. And what you might -- what that might do to those centers? And what kind of investments you could contemplate as the Kansas City Chiefs build their stadium next to the legends -- and as the sphere gets built right next to the National Harbor outlet. Stephen Yalof: Floris, thanks a lot for that question. I talked earlier about organic growth. Organic growth means taking advantage of opportunities on the existing portfolio. And in the case of Legends, we just closed on a pad right at the entry as an existing restaurant. We see great long-term upside opportunity on that pad. Similarly in National Harbor, we're working with our partners, who we co-own that shopping center with on some future development there as well in light of the fact that the sphere is building on the adjacent property at the MGM in that marketplace. But that's just 2 of 41 centers in our portfolio. And we spent a tremendous amount of time looking at the future opportunities. If you look at Foley, Alabama, we're in the process of doing a remodel and redevelopment of that center because it enjoyed over the last 4 or 5 years, great permanent population growth. And where that center typically serves a tourist market, we're seeing huge upside in the Ripken partnership in the sports tourism business, but also as the local population continues to grow, and that customer relies on that shopping center to be the place where they do most of their shopping we're finding adding additional uses, restaurants, entertainment uses will give the customer the opportunity to come and shop with us far more frequently. That narrative is playing out across our entire portfolio. It's been a strategy of ours for the past 5 or 6 years. We've been executing to it. Justin talked about the new uses that we're putting in the shopping centers. And I think we're going to continue to see that helped us continue to drive NOI long term and sustained in that existing portfolio. Operator: The next question is from the line of Mike Mueller with JPMorgan. Michael Mueller: I guess first, are there any outlet development opportunities on the horizon? Or is it just nothing making sense for you today? And I guess, similarly, you bought some chunkier lifestyles. Are there any meaningful expansion or outparcel opportunities with those? Stephen Yalof: Football, I think there's a number of great markets where -- and outlet centers are coming closer and closer to the main markets it's opened the door for a number of great markets to build outlet shopping centers, evidenced by our center that we built a few years ago in Nashville. The economics right now of building new versus acquiring just our added imbalance -- so we think it's a better use of our capital to acquire in this current market. But that doesn't mean we won't maintain our pipeline of future locations -- so when that dynamic changes, we'll have an opportunity to perhaps get back into some development. With regard to the outparcel business, here, we are proactively seeking out parcels in adjacencies across our entire portfolio. Most notably is the one that we did in Arizona just a couple of years ago where ADOT put a large chunk of land that's immediately adjacent to our Glendale asset. And we took that down. We've now fully brought that space online with a number of different uses a multiple multi-tenant building that helps us take advantage of new food and beverage and entertainment opportunities that are not only adjacent to our property, but literally sit on the same campus as State Farm Arena and Glendale Entertainment District. The synergy of which has created a great flywheel for us to maintain growth and continue to grow that as one of our most productive assets in our portfolio. Michael Mueller: Got it. Okay. And I guess second, how big is the pool of temp tenants that you look to backfill with? And is there a rule of thumb for -- that we should be thinking of in terms of a split between tenants that you'll line up that are using it for incubator test base versus others that just may make kind of a recurring business out of these shorter-term stores? Stephen Yalof: Yes, there's a number of different uses. But we talked about the strategy of 10 years. Obviously, the cheapest rent in our portfolio is a temp tenant that goes in on a 30-day lease and will move from space to space, and keep spaces occupied while we have some frictional vacancy and we're waiting for new tenants to come in. The most expensive leases in our portfolio are the ones where the retailer wants to come in for the Halloween season or the holiday season, and we take advantage of those opportunities if we have vacant space to bring tenants in for that, too. But I think what you're referring to is the pop-up strategy, look, there's a lot of barriers to entry in the outlet business for retailers because many of those retailers aren't ready to sign a 10-year lease, day 1, not knowing how much excess inventory they have or if they'll be able to continue to flow goods into a store to create a sustainable business. In that connection, we've done a really good job working with retailer partners to give them the opportunity to sort of try before they buy using that pop-up strategy to see if they'll be successful. And we've had some great results doing that. We've also tried some retailers where it simply didn't work out. But some of the great results are our partners inventory burgers, our partnership with Vineyard Vines, with UGG, and some of these stores that start out as short-term pop-up leases that ultimately convert into higher paying rent tenants over time that proliferate across our portfolio. Operator: Our next question is from the line of Naishal Shah with Green Street. Naishal Shah: This is Naishal on for Vince today. I was just curious if you could shed a little bit more light on what is expected for property operating expenses for '26 versus last year? I appreciate this is probably a very lumpy line item and once you may be elevated given the snow removal costs. But any color you could provide would be helpful. Michael Bilerman: Hi, Naishal, we guide same center NOI. We don't break out sort of expense relative to revenue in part because there's different strategies. And as you said, the OpEx is more variable, and we will be able to provides as we drive overall NOI growth, you'll see continued growth overall in the top line, and we try to mitigate as much of that expense pressure through just cost containment measures ultimately to drive as much long-term NOI growth within our business. And I think you look for the last -- for 5 years, we've been able to drive pretty attractive same-center NOI growth and we continue to see opportunities to grow our revenues, as Steve talked about, still being at 9.7% OCR, the leasing demand that we're seeing, the growth in our other revenues. And then from a sales perspective, you've seen our sales now go over 84 a foot, yet our OCR is still very low. And so we feel like that provides us continued opportunity to drive revenue. And then we look at every one of our operating expenses to try to mitigate as much of that expense growth as possible, some that's in our control and obviously some that were holding to the macro environment. Naishal Shah: Great. And then maybe just a quick follow-up. On the occupancy composition today, could you shed maybe a little bit more light on [indiscernible] portfolio today as a percent or as a proportion of total occupancy and how this compares with previous years? Michael Bilerman: Sure. We're about 10% today. We came down a little bit coming out of the fourth quarter which is always a seasonal high. And as we move -- will probably have a little bit higher temp as we move through some of the bankruptcies in the near term and then exit the year into '27 with a higher permanent base. Operator: Thank you. I'll now turn the call back over to Stephen Yalof. Stephen Yalof: Thank you very much. As many of you are aware, Mr. Tanger will be retiring from our Board next week. And I'd like to take a moment to say thank you. Thank you for building this foundation of this great company, and thank you for your years of leadership and mentorship to me and our management team. I look forward to our continued relationship as we remain an adviser to Tanger. And now I'd like to turn it over to Mr. Tanger. Steven Tanger: Good morning. Next week, as previously announced, I will retire from Tanger's Board and step into the role of Chair Emeritus. An opportunity, I am honored to accept. Since taking Tanger Public 33 years ago, this journey has been defined by the support, trust and friendship of the investor community, and I am deeply grateful to each of you who has been part of that history with us. I have great confidence in the strength of our board, our leadership and the entire Tanger team, I know the future of this company is in very capable hands, and I could not be more excited about the path ahead. Thank you again for your continued support of Tanger. Operator: Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may now disconnect your lines at this time, and have a wonderful day. Before you buy stock in Tanger, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Tanger wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $504,832!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,223,471!* Now, it’s worth noting Stock Advisor’s total average return is 971% — a market-crushing outperformance compared to 202% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 1, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Tanger. The Motley Fool has a disclosure policy. Tanger (SKT) Q1 2026 Earnings Call Transcript was originally published by The Motley Fool

Q1 Core FFO was $0.59 per share, up 11% year-over-year, with occupancy at 97% and trailing-12-month sales productivity of $482/sq ft, and the company raised full-year 2026 Core FFO guidance to $2.42–$2.50 (about 6% growth at the midpoint). Leasing momentum was a highlight—management executed a record 651 leases totaling 3.4 million sq ft with blended rent spreads of 10.5% and retenanting spreads >26%—and is prioritizing retenanting over renewals to diversify the tenant mix into food & beverage, entertainment, health/beauty and services. Tanger's balance sheet shows net debt/adjusted EBITDA of ~4.8x with all debt fixed (weighted average rate ~4%), > $1 billion of immediate liquidity, a 53% FAD payout ratio, and upcoming principal maturities including $350M of unsecured bonds in September and roughly $300M in summer 2027. Interested in Tanger Inc.? Here are five stocks we like better. Tanger (NYSE:SKT) reported first-quarter 2026 results that management said showed continued momentum across leasing, operations, and marketing, prompting the company to raise its full-year earnings outlook. On the company’s May 1 conference call, President and CEO Stephen Yalof pointed to higher occupancy, rising sales productivity, and stable tenant occupancy costs as factors supporting additional rent growth. Yalof said Core FFO came in at $0.59 per share, up 11% from the prior-year quarter. Occupancy ended the quarter at 97%, an increase of 120 basis points year-over-year. On a trailing 12-month basis, sales productivity rose to $482 per square foot, while the occupancy cost ratio (OCR) remained stable at 9.7%. → Meta Posted Its Best Sales Growth Since 2021—So Why Did Shares Fall? “These results reinforce a core point that our integrated leasing and marketing strategies…are working together to drive sales, traffic, NOI, and long-term value for our stakeholders,” Yalof said. Chief Financial Officer and Chief Investment Officer Michael Bilerman said the year-over-year Core FFO increase was “predominantly driven by solid internal growth, contributions from our recently acquired centers, and modestly higher lease termination income.” Same-center NOI (excluding lease termination income) increased 2.6% in the quarter, driven by higher rents, tenant reimbursements, and other revenue. → 5 Stocks to Buy in May Before the Next AI Surge Hits Bilerman noted that elevated snow removal costs weighed on the quarter’s NOI growth, an impact he said had been contemplated in prior guidance. In response to a question, he quantified the year-over-year impact as “about $0.01” per share and roughly “about 100 basis points” on same-center growth in the first quarter. Management emphasized ongoing remerchandising efforts, including replacing underperforming retailers with more productive tenants and adding new concepts across retail, food and beverage, and services. → Verizon’s Signal Strength: The Turnaround Call Is Loud and Clear Yalof said the company executed 651 leases totaling 3.4 million square feet over the last 12 months, which he described as record leasing production for Tanger. He reported blended rent spreads of 10.5%, with retenanting spreads exceeding 26%. On retention, Yalof said the company expects to renew about 80% of its lease roll this year, which he characterized as “probably the lowest it’s been in the past five or six years,” attributing the approach to a “very deep pipeline of tenants that wanna be in our shopping centers.” He said the company is pursuing opportunities where retenanting spreads are “far higher than our renewal spreads.” Executive Vice President and Chief Revenue Officer Justin Stein added that Tanger had completed about 67% of its renewals and said the team took a “strategic and surgical approach” to allow greater focus on new leasing. Stein said the tenant mix has continued to evolve since 2019. Footwear and apparel represented about 80% of the tenant mix in 2019 and is now about 70%, Stein said. He said Tanger is expanding into entertainment, health and beauty, food and beverage, and home goods categories. In discussing the economics of negotiated lease terminations, Bilerman said the company evaluates opportunities to capture net present value on remaining rent, then re-lease the space. He added that tenant improvement costs are “pretty low relative to other asset classes,” and that termination fees can help fund the repositioning and “create growth with a better tenant down the road.” Yalof highlighted the company’s marketing platform and traffic monetization initiatives, including a growing proprietary loyalty program and more than 200 on-center events and activations in the first quarter. He said these community engagement initiatives contributed to traffic growth during the quarter. Yalof also discussed a partnership with Unrivaled Sports and the Ripken Experience platform, calling Tanger the “exclusive shopping center partner” in shared markets and describing the arrangement as a way to capture sports tourism demand. In response to a question, Yalof tied the partnership to the company’s push into food and beverage offerings, saying visiting families “will wanna shop” and “also want a place to dine and be entertained.” Asked about higher gas prices and whether they could impact shopping patterns, Yalof said he was “really impressed with how resilient our customers have been,” noting that sales and traffic rose in the first quarter despite that headwind. He added that Tanger is “no longer just reliant on that drive-to tourist customer,” describing the portfolio as increasingly serving local shoppers. “Thankfully, our shopping centers offer value every day,” he said. Yalof also cited technology initiatives, including a multilingual AI chatbot that he said now handles more than 80% of customer inquiries. Bilerman said Tanger ended the quarter with net debt-to-adjusted EBITDA of approximately 4.8x and that all debt is fixed-rate (including swaps), with a weighted average interest rate of about 4% and a weighted average term to maturity of about four and a half years once near-term maturities are addressed. He also noted a funds-available-for-distribution payout ratio of 53% and said the company is retaining free cash flow after dividends. Bilerman said the company has more than $1 billion of immediate liquidity, including cash, short-term investments, delayed draw term loan proceeds, and full availability on lines of credit. He highlighted upcoming maturities including $350 million of unsecured bonds due in September and a potential early redemption of a $115 million Kansas City mortgage maturing late next year. After addressing those, he said the next significant maturity would be $300 million of unsecured bonds in summer 2027, with no other significant maturities until 2030. Based on the first-quarter results and outlook, Bilerman said Tanger raised full-year 2026 Core FFO guidance to a range of $2.42 to $2.50 per share, representing 6% growth at the midpoint. Same-center NOI growth guidance was maintained at 2.25% to 4.25%. Bilerman said guidance does not assume additional acquisitions, dispositions, or financing activity beyond what has been completed to date. On external growth, Bilerman said the company’s pipeline remains active across outlet and open-air lifestyle assets, with an emphasis on where Tanger’s leasing, operating, marketing, and asset management platforms can add value. “It’s not that initial yield, it’s the growth that can be attained over time,” he said. Yalof said new outlet development economics are currently less attractive than acquisitions, though he said the company continues to maintain a pipeline of potential locations. He also discussed pursuing outparcel and adjacent land opportunities, citing an example in Arizona near the company’s Glendale asset. Regarding bankruptcies and closures, Bilerman said guidance includes a range of credit outcomes and referenced Eddie Bauer, Francesca’s, and Saks as known situations. He said the second quarter would likely have “most of the brunt” of the impact, with temporary or permanent backfills contributing more in the back half of the year. Bilerman also said temporary tenants currently represent about 10% of the portfolio, down from a seasonal peak exiting the fourth quarter. Separately, Yalof noted that Steven Tanger will retire from the board next week and transition to Chair Emeritus. Steven Tanger said he would step into the role as previously announced and thanked the investor community, adding he has “great confidence” in the board and leadership team. Tanger Factory Outlet Centers, Inc (NYSE: SKT) is a real estate investment trust specializing in the ownership, development and management of outlet shopping centers. The company's portfolio comprises more than 40 outlet properties anchored by leading fashion and lifestyle brands. Tanger's centers are designed to offer off-price retail experiences in open-air, community-oriented settings, providing value-focused shoppers with access to premium brands at reduced prices. Founded in 1981 by Stanley K. The article "Tanger Q1 Earnings Call Highlights" was originally published by MarketBeat.