Grows Same Center Occupancy by 60 Basis Points Year Over Year Achieves 9th Consecutive Quarter of Positive Rent Spreads Increases, Extends and Improves Pricing of Unsecured Lines of Credit GREENSBORO, N.C., April 30, 2024 /PRNewswire/ -- Tanger® (NYSE:SKT), a leading owner and operator of outlet and open-air retail shopping destinations, today reported financial results and operating metrics for the three months ended March 31, 2024. "We are pleased to announce another quarter of strong financial and operating results along with a recent 6% dividend increase," said Stephen Yalof, President and Chief Executive Officer. "We are strategically focused on elevating and diversifying our tenant mix, driving total rents and leveraging our platform to realize additional growth. We achieved our ninth consecutive quarter of positive rent spreads with continued significant leasing volume, which positions us to further enhance our portfolio for our shoppers and retail partners." Mr. Yalof continued, "In early April, we also increased the capacity, extended the term, and improved the pricing of our unsecured lines of credit, further strengthening our balance sheet and liquidity, positioning the Company to continue to execute on its long-term growth strategies and unlock additional value for all of our stakeholders." First Quarter Results Net income available to common shareholders was $0.20 per share, or $22.2 million, compared to $0.22 per share, or $23.3 million, for the prior year period. Funds From Operations ("FFO") available to common shareholders was $0.51 per share, or $58.6 million, compared to $0.47 per share, or $52.0 million, for the prior year period. Core Funds From Operations ("Core FFO") available to common shareholders was $0.52 per share, or $60.1 million, compared to $0.46 per share, or $51.2 million, for the prior year period. Core FFO in the first quarter of 2024 excluded executive severance costs of $0.01 per share, which was reflected in the Company's initial full-year 2024 guidance. Core FFO in the first quarter of 2023 excluded the reversal of previously expensed compensation related to a voluntary executive departure of $0.01 per share. The Company does not consider these items to be indicative of its ongoing operating performance. FFO and Core FFO are widely accepted supplemental non-GAAP financial measures used in the real estate industry to measure and compare the operating performance of real estate companies. Complete reconciliations containing adjustments from GAAP net income to FFO and Core FFO, if applicable, and further information regarding these non-GAAP measures can be found later in this release. Per share amounts for net income, FFO and Core FFO are on a diluted basis. Operating Metrics Key portfolio results for the total stabilized portfolio, including the Company's pro rata share of unconsolidated joint ventures, were as follows: Occupancy was 96.5% on March 31, 2024, compared to 97.3% on December 31, 2023 and 96.5% on March 31, 2023. On a same center basis (excluding Tanger Outlets Asheville and Bridge Street Town Centre in Huntsville, AL, which were acquired in the fourth quarter of 2023), occupancy was 97.1% on March 31, 2024, 97.9% on December 31, 2023 and 96.5% on March 31, 2023. Same center net operating income ("Same Center NOI"), which is presented on a cash basis, increased 5.2% to $87.9 million for the first quarter of 2024 from $83.6 million for the first quarter of 2023 driven by higher rental revenues from increased base rent and expense recoveries, as well as the benefit from certain expense refunds, which were partially offset by additional snow removal expenses compared to the prior year. Average tenant sales per square foot was $437 for the twelve months ended March 31, 2024 compared to $436 for the twelve months ended December 31, 2023 and $447 for the twelve months ended March 31, 2023. On a same center basis, average tenant sales per square foot was $434 for the twelve months ended March 31, 2024 compared to $433 for the twelve months ended December 31, 2023 and $447 for the twelve months ended March 31, 2023. The occupancy cost ratio ("OCR"), representing annualized occupancy costs as a percentage of tenant sales, was 9.3% for the twelve months ended March 31, 2024 compared to 9.3% for the twelve months ended December 31, 2023 and 8.8% for the twelve months ended March 31, 2023. Lease termination fees (which are excluded from Same Center NOI) for the total portfolio totaled $262,000 for the first quarter of 2024 compared to $13,000 for the first quarter of 2023. Same Center NOI is a supplemental non-GAAP financial measure of operating performance. A complete definition of Same Center NOI and a reconciliation to the nearest comparable GAAP measure can be found later in this release. Leasing Activity Leasing activity in the Company's portfolio continues to be robust. For the total domestic portfolio, including the Company's pro rata share of domestic unconsolidated joint ventures, total renewed or re-tenanted leases (including leases for both comparable and non-comparable space) executed during the twelve months ended March 31, 2024 included 542 leases, totaling over 2.3 million square feet, compared to 414 leases, totaling nearly 1.7 million square feet, during the twelve months ended March 31, 2023, a 38.9% increase in square feet. Blended average rental rates were positive for the ninth consecutive quarter at 12.9% on a cash basis for leases executed for comparable space during the twelve months ended March 31, 2024. These blended rent spreads are comprised of re-tenanted rent spreads of 36.0% and renewal rent spreads of 10.6%. Relative to 2023, the Company continues to expect a higher re-tenanting rate in 2024 as it focuses on portfolio enhancement and further elevating and diversifying its retailer mix. As part of this strategy, as of April 30, 2024, Tanger has renewals executed or in process for 46.6% of the space scheduled to expire during 2024 compared to 58.0% of expiring 2023 space as of April 30, 2023 (total portfolio, including the Company's pro rata share of unconsolidated joint ventures). Dividend On April 10, 2024, the Company's Board of Directors approved a 5.8% increase in the dividend for common shares from $1.04 to $1.10 per share on an annualized basis. Simultaneously, the Company's Board of Directors authorized a quarterly cash dividend of $0.275 per share, payable on May 15, 2024 to holders of record on April 30, 2024. Balance Sheet and Liquidity As previously announced, on April 12, 2024, Tanger's operating partnership, Tanger Properties Limited Partnership, amended, increased and extended its unsecured lines of credit. Key elements of the amendments include extending the maturity date to April 2028, with options to extend for an additional year to April 2029. Borrowing capacity was increased to $620 million from $520 million, with an accordion feature to increase total borrowing capacity to $1.2 billion, subject to lender approval. Additionally, the ratings-based pricing grid was revised, including a reduction of 15 basis points at Tanger's current levels. The following balance sheet and liquidity metrics are presented for the total portfolio, including the Company's pro rata share of unconsolidated joint ventures. As of March 31, 2024: Net debt to Adjusted EBITDAre (calculated as net debt divided by Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("Adjusted EBITDAre")) improved to 5.7x for the twelve months ended March 31, 2024 from 5.8x for the year ended December 31, 2023. Management estimates that Net debt to Adjusted EBITDAre would be in a range of 5.2x to 5.3x for both periods assuming a full twelve months of Adjusted EBITDAre for Tanger Nashville, Tanger Asheville, and Bridge Street Town Centre, which were added to the portfolio during the fourth quarter of 2023. Interest coverage ratio (calculated as Adjusted EBITDAre divided by interest expense) was 4.6x for the first quarter of 2024 and 4.8x for the twelve months ended March 31, 2024. Cash and cash equivalents and short-term investments totaled $23.0 million with $474.0 million of availability on the Company's $520.0 million unsecured lines of credit, which were amended, increased and extended in April 2024, adding an additional $100.0 million of liquidity as noted above.  Total outstanding debt aggregated $1.6 billion with $112.2 million (principal) of floating rate debt, representing approximately 7% of total debt outstanding and 2% of total enterprise value. Weighted average interest rate was 4.1%, including executed swaps, and weighted average term to maturity of outstanding debt, including extension options, was approximately 4.4 years. Approximately 89% of the total portfolio's square footage was unencumbered by mortgages with secured debt of $223.4 million (principal), representing 14% of total debt outstanding. Funds Available for Distribution ("FAD") payout ratio was 54% for the first quarter of 2024. Adjusted EBITDAre, Net debt and FAD are supplemental non-GAAP financial measures of operating performance. Definitions of Adjusted EBITDAre, Net debt and FAD and reconciliations to the nearest comparable GAAP measures are included later in this release. Guidance for 2024 Based on the Company's results to date and its outlook for the remainder of 2024, management is increasing its full-year 2024 guidance with its current expectations for net income, FFO and Core FFO per share for 2024 as follows: For the year ending December 31, 2024: Revised Previous Low Range High Range Low Range High Range Estimated diluted net income per share $    0.84 $    0.92 $    0.83 $    0.91 Depreciation and amortization of real estate assets - consolidated and the Company's share of unconsolidated joint ventures 1.18 1.18 1.18 1.18 Estimated diluted FFO per share $    2.02 $    2.10 $    2.01 $    2.09 Executive severance costs 0.01 0.01 0.01 0.01 Estimated diluted Core FFO per share $    2.03 $    2.11 $    2.02 $    2.10   Tanger's estimates reflect the following key assumptions (dollars in millions): For the year ending December 31, 2024: Revised Previous Low Range High Range Low Range High Range Same Center NOI growth - total portfolio at pro rata share 2.25 % 4.25 % 2.0 % 4.0 % General and administrative expense, excluding executive severance $76.5 $79.5 $76.5 $79.5 Interest expense - consolidated $59.5 $61.5 $59.5 $61.5 Other income (expense) (1) $— $2.0 $— $2.0 Annual recurring capital expenditures, renovations and second generation tenant allowances $50.0 $60.0 $50.0 $60.0 (1)   Includes interest income.   Weighted average diluted common shares are expected to range from approximately 109 million to 110 million for earnings per share and 114 million to 115 million for FFO and Core FFO per share. The estimates above do not include the impact of the acquisition or sale of any outparcels, properties or joint venture interests, or any additional financing activity. First Quarter 2024 Conference Call Tanger will host a conference call to discuss its first quarter 2024 results for analysts, investors and other interested parties on Wednesday, May 1, 2024, at 8:30 a.m. Eastern Time. To access the conference call, listeners should dial 1-877-605-1702. Alternatively, a live audio webcast of this call will be available to the public on Tanger's Investor Relations website, investors.tanger.com. A telephone replay of the call will be available from May 1, 2024 at approximately 11:30 a.m. through May 15, 2024 at 11:59 p.m. by dialing 1-877-660-6853, replay access code #13745043. An online archive of the webcast will also be available through May 15, 2024. Upcoming Events The Company is scheduled to participate in the following upcoming events: A tour of Tanger Outlets Savannah on May 7, 2024 in connection with Wells Fargo's 27th Annual Real Estate Securities Conference held at the Ritz Carlton in Amelia Island, FL from May 8 through May 9, 2024 BMO's 19th Annual Real Estate Conference held at the InterContinental Barclay Hotel in New York, NY on May 8, 2024, including a panel discussion with Stephen Yalof, President and Chief Executive Officer, at 10:15 a.m. Eastern Time ICSC Las Vegas held at the Las Vegas Convention Center in Las Vegas, NV from May 20 through May 21, 2024 Nareit's REITweek: 2024 Investor Conference held at the New York Hilton Midtown in New York, NY from June 4 through June 6, 2024, including a company presentation on June 4, 2024 at 10:15 a.m. Eastern Time. Additional details about the presentation, including a live audio webcast, will be available to the public on Tanger's Investor Relations website, investors.tanger.com About Tanger® Tanger Inc. (NYSE:SKT) is a leading owner and operator of outlet and open-air retail shopping destinations, with over 43 years of expertise in the retail and outlet shopping industries. Tanger's portfolio of 38 outlet centers, one adjacent managed center and one open-air lifestyle center comprises over 15 million square feet well positioned across tourist destinations and vibrant markets in 20 U.S. states and Canada. A publicly traded REIT since 1993, Tanger continues to innovate the retail experience for its shoppers with over 3,000 stores operated by more than 700 different brand name companies. Tanger is furnishing a Form 8-K with the Securities and Exchange Commission ("SEC") that includes a supplemental information package for the quarter ended March 31, 2024. For more information on Tanger, call 1-800-4TANGER or visit the Company's website at www.tanger.com.  The Company uses, and intends to continue to use, its Investor Relations website, which can be found at investors.tanger.com, as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Additional information about the Company can also be found through social media channels. The Company encourages investors and others interested in the Company to review the information on its Investor Relations website and on social media channels. The information contained on, or that may be accessed through, our website or social media platforms is not incorporated by reference into, and is not a part of, this document. Safe Harbor Statement Certain statements made in this earnings release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and included this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies, beliefs and expectations, are generally identifiable by use of the words "anticipate," "believe," "can," "continue," "could," "designed," "estimate," "expect," "forecast," "goal," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "target," "will," "would," or similar expressions. Such forward-looking statements include the Company's expectations regarding future financial results and assumptions underlying that guidance, long-term growth, trends in retail traffic and tenant revenues, development initiatives and strategic partnerships, the anticipated impact of the Company's newly acquired assets in Huntsville and Asheville, as well as its newly opened Nashville development and related costs and anticipated yield, expectations regarding operational metrics, renewal trends, new revenue streams, its strategy and value proposition to retailers, participation in upcoming events, uses of and efforts to reduce costs of capital, liquidity, dividend payments and cash flows. Other important factors that may cause actual results to differ materially from current expectations include, but are not limited to: our inability to develop new retail centers or expand existing retail centers successfully; risks related to the economic performance and market value of our retail centers; the relative illiquidity of real property investments; impairment charges affecting our properties; our acquisitions or dispositions of assets may not achieve anticipated results; competition for the acquisition and development of retail centers, and our inability to complete the acquisitions of retail centers we may identify; competition for tenants with competing retail centers; the diversification of our tenant mix and our entry into the operation of full price retail may not achieve our expected results; environmental regulations affecting our business; risks associated with possible terrorist activity or other acts or threats of violence and threats to public safety; risks related to the impact of macroeconomic conditions, including rising interest rates and inflation, on our tenants and on our business, financial condition, liquidity, results of operations and compliance with debt covenants; our dependence on rental income from real property; the fact that certain of our leases include co-tenancy and/or sales-based provisions that may allow a tenant to pay reduced rent and/or terminate a lease prior to its natural expiration; our dependence on the results of operations of our retailers and their bankruptcy, early termination or closing could adversely affect us; the impact of geopolitical conflicts; the immediate and long-term impact of the outbreak of a highly infectious or contagious disease on our tenants and on our business (including the impact of actions taken to contain the outbreak or mitigate its impact); the fact that certain of our properties are subject to ownership interests held by third parties, whose interests may conflict with ours; risks related to climate change; increased costs and reputational harm associated with the increased focus on environmental, sustainability and social initiatives; risks related to uninsured losses; the risk that consumer, travel, shopping and spending habits may change; risks associated with our Canadian investments; risks associated with attracting and retaining key personnel; risks associated with debt financing; risks associated with our guarantees of debt for, or other support we may provide to, joint venture properties; the effectiveness of our interest rate hedging arrangements; our potential failure to qualify as a REIT; our legal obligation to pay dividends to our shareholders; legislative or regulatory actions that could adversely affect our shareholders, our dependence on distributions from the Operating Partnership to meet our financial obligations, including dividends; the risk of a cyber-attack or an act of cyber-terrorism on our systems; the uncertainties of costs to comply with regulatory changes (including potential costs to comply with proposed rules of the SEC to standardize climate-related disclosures); and other important factors which may cause actual results to differ materially from current expectations include, but are not limited to, those set forth under Item 1A - "Risk Factors" in the Company's and the Operating Partnership's Annual Report on Form 10-K for the year ended December 31, 2023. We qualify all of our forward-looking statements by these cautionary statements. The forward-looking statements in this earnings release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise. Investor Contact Information Media Contact Information Doug McDonald KWT Global SVP, Treasurer and Investments 336-856-6066   TANGER INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (Unaudited) Three months ended March 31, 2024 2023 Revenues: Rental revenues $117,809 $103,582 Management, leasing and other services 2,278 1,914 Other revenues 3,284 3,447 Total revenues 123,371 108,943 Expenses: Property operating 35,465 33,148 General and administrative (1) 19,490 17,434 Depreciation and amortization 33,860 25,893 Total expenses 88,815 76,475 Other income (expense): Interest expense (14,353) (12,343) Other income (expense) 587 2,800 Total other income (expense) (13,766) (9,543) Income before equity in earnings of unconsolidated joint ventures 20,790 22,925 Equity in earnings of unconsolidated joint ventures 2,516 1,935 Net income 23,306 24,860 Noncontrolling interests in Operating Partnership (973) (1,071) Noncontrolling interests in other consolidated partnerships 80 (248) Net income attributable to Tanger Inc. 22,413 23,541 Allocation of earnings to participating securities (231) (199) Net income available to common shareholders of Tanger Inc. $22,182