Tanger (SKT) investor relations material

Company Overview and Growth Strategy

• Operates 42 open-air shopping centers, including 38 outlet and 4 lifestyle centers, with over 3,000 stores, 800+ brands, $4.3B equity, and $6.1B enterprise value.

• Focuses on internal growth, activating peripheral land, and disciplined external acquisitions and development, with $1B deployed into eight new assets and $840M since 2023.

• Portfolio is positioned in high-growth, high-traffic markets, with double the national average population growth and 90%+ of space in top tourist or major metro areas.

• Emphasizes market-dominant, unique-to-market centers with curated merchandising and local team leadership.

• Strong retailer partnerships and customer relationships provide insights to anticipate shopper trends.

Market Trends, Leasing Dynamics, and Tenant Mix

• Retail sector remains resilient, with increased domestic tourism, shifting demographics, and outlet centers becoming regional hubs.

• Leasing demand is strong due to limited new shopping center development, favorable acquisition economics, and retailers expanding into mid-tier markets.

• Top tenants include Athleta, Coach, Banana Republic, Under Armour, and others, with a focus on diversification and elevation.

• Outlet channel remains core to retailers’ omnichannel strategy, offering lower occupancy costs and direct consumer touchpoints.

• Four open-air lifestyle centers complement the outlet portfolio, leveraging similar operational efficiencies and tenant mix.

Tenant Health and Space Backfilling

• Tenant watch list is at its smallest, with recent bankruptcies having minimal impact due to high demand for space.

• Backfilling vacated anchor spaces is expected to yield higher rents, with temporary tenants often paying 2-4x previous rents.

• Anchor boxes in top centers offer long-term upside as they are re-leased to more productive tenants.