Tanger (SKT) Nareit REITweek: 2025 Investor Conference summary

Company Overview and Strategic Vision

• Operates 37 outlet centers in the U.S. and 2 in Canada, with recent expansion into open-air lifestyle centers in affluent markets; manages 40 properties totaling 15.9M square feet and a 44-year operating history.

• Equity REIT valued at $4 billion, with a $5.7 billion enterprise value and a $4.0B market cap.

• Portfolio is 95% open-air, with 93% of outlet space in top tourist destinations or major MSAs, and over 3,000 stores from 700+ brands.

• Strategic expansion in 2023 added three lifestyle centers in Huntsville, Little Rock, and Cleveland, with recent acquisitions in Palm Beach, Nashville, Asheville, Bridge Street Town Centre, Phoenix, The Promenade at Chenal, and Pinecrest.

• Focused on delivering value, experience, and opportunity for communities, stakeholders, and partners, leveraging customer insights to shape the future of shopping.

Financial Position, Performance, and Guidance

• Maintains low leverage at 5x debt-to-EBITDA (net debt to Adjusted EBITDAre at 5.2x), with strong liquidity, $481 million available under unsecured lines, and no significant maturities until September 2026.

• Delivered 5% same-center NOI growth over four years; 2024 and 2025 guidance is 2%-4% NOI and 4%-8% FFO growth, with net income per diluted share guidance for 2025 at $0.91–$0.99 and Core FFO per share at $2.22–$2.30.

• Dividend recently increased by 6.5%, with a payout ratio at 60% of FAD, below sector average.

• All debt covenants are in compliance, with strong ratings from Fitch, Moody’s, and S&P.

• Uses FFO, Core FFO, Portfolio NOI, Same Center NOI, Adjusted EBITDAre, and Net Debt as supplemental performance metrics, providing reconciliations for transparency.

Growth Strategy and Capital Deployment

• Growth strategy focuses on internal rent growth, intensifying existing real estate, disciplined external acquisitions, and developments.

• Deployed $650 million into five new assets over 18 months, including a new Nashville outlet and four acquisitions.

• Recent acquisitions include The Promenade at Chenal (~$73M, 270K SF, 91% occupied, ~8% yield) and Pinecrest (~$167M, 639K SF, 96% occupied, ~8% yield), both in affluent, high-growth areas.

• Balance sheet supports $150 million-$200 million in additional leverage-neutral acquisitions.

• Institutional capital interest in retail real estate is rising due to limited new supply and population growth.