Slide 1: Management Presentation
FEBRUARY 15, 2024 Management Presentation
Slide 2: Safe Harbor Statement
Certain statements made in this presentation contain forward-looking liquidity, results of operations and compliance with debt covenants; our FOURTH QUARTER 2023 statements within the meaning of Section 27A of the Securities Act of dependence on rental income from real property; our dependence on 19
Slide 3: Table of Contents
FOURTH QUARTER 2023 Tanger at a Glance 4 Our Board and Executive Team 6 Our Mission and Vision 7 Table of Contents The Outlet Channel 8 Positioned for Growth 10 Operating Metrics 12 Core Strategies 16 External Growth 24 Non-GAAP Supplemental Measures 38 Notes and Additional Information 45 3
Slide 4: Tanger at a Glance
FOURTH QUARTER 2023 Tanger at a Glance LONG-TERM FOUNDATION POSITIONED FOR GROWTH • 43-year history and 31 years publicly traded on the • Open-air portfolio provides brands and retailers an NYSE (SKT) attractive and integral sales channel • $3.1B market capitalization (1) • Centers sought out by con
Slide 5: 40 Well-Positioned Properties
FOURTH QUARTER 2023 40 Well-Positioned Properties Open-air portfolio with locations in high-frequency tourist destinations and suburbs of vibrant and fast-growing markets CONSOLIDATED OR JOINT VENTURE OUTLET CENTER NEW ACQUISITION, BRIDGE STREET TOWN CENTRE NEW ACQUISITION, TANGER OUTLETS ASHEVILLE
Slide 6: Experienced and Engaged Executive Team and Board
FOURTH QUARTER 2023 EXECUTIVE TEAM Stephen Yalof Michael Bilerman Leslie Swanson Jessica Norman Justin Stein Experienced Director, President and Executive Vice Executive Vice Executive Vice Executive Vice Chief Executive Officer President, Chief President, Chief President, General President, Leasing
Slide 7: Our Mission and Our Vision
FOURTH QUARTER 2023 Our Mission To deliver the best value, experience and opportunity for our communities, stakeholders and partners Our Vision Using customer insights and experience to inform the future of shopping 7
Slide 8: Retailer Value Proposition
FOURTH QUARTER 2023 Productive Sales Model & Clearance Channel Lower Cost of Occupancy THE OUTLET CHANNEL Retailer Value Higher Margins Proposition One of the most profitable channels for retailers and an Lower Customer Acquisition Costs important component of the omnichannel retail strategy Direct
Slide 9: Consumer Value Proposition
FOURTH QUARTER 2023 Brand Names at Consistent Value THE OUTLET CHANNEL Consumer Value Social, Experiential Shopping Proposition Tactile Interaction with Products Instant Gratification of In-Person Shopping 9
Slide 10: Positioned for Growth
FOURTH QUARTER 2023 Positioned for Growth STRATEGIC, DISCIPLINED & DATA-DRIVEN ACTIVE LEASING EFFICIENT OPERATIONS PERFORMANCE MARKETING STRATEGIC FINANCE • Grow Total Rent • Grow Ancillary Revenues • Drive Sales Growth • Prudent Balance Sheet • Increase Occupancy • Drive Operational Efficiencies •
Slide 11: Strong & Dynamic Tenant Mix
FOURTH QUARTER 2023 Strong & Dynamic Tenant Mix “Tanger is a great partner. They value long-term relationships and they make it their business to understand our needs and how best to serve the consumer.” Brands: Todd Kahn, Tapestry President 67.5% Athleta; Aéropostale; Ann Taylor; Coach; Under Aerie
Slide 12: Operating Metrics
FOURTH QUARTER 2023 Operating Metrics 12
Slide 13: Operating Metrics
FOURTH QUARTER 2023 8 CONSECUTIVE QUARTERS OF Operating Metrics POSITIVE RENT SPREADS (Total Portfolio at Pro Rata Share Except Where Noted) 40.0% 97.3% 36.0% Occupancy (1) 32.0% 28.0% +13.3% Blended Cash Rent Spreads for Executed Comparable Leases (2)(3)(4) 24.0% 20.0% 14.5% 6.2% YOY Change in Same
Slide 14: Solid Performance With Sustained Occupancy
FOURTH QUARTER 2023 Solid Performance With Sustained Occupancy 98.7% 98.8% 97.9% 97.5% 97.5% 97.2% 96.8% 97.1% 97.0% 97.3% 95.3% 92.2% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Represents period-end occupancy for stabilized consolidated centers and pro rata share of unconsolidated
Slide 15: Upcoming Expirations Provide Opportunity
FOURTH QUARTER 2023 Upcoming Expirations Provide Opportunity PERCENTAGE OF ANNUAL BASE RENT PERCENTAGE OF TOTAL GLA 2024 20% 2024 21% 2025 18% 2025 19% 2026 15% 2026 16% 2027 13% 2027 12% 2028 14% 2028 14% 2029 5% 2029 4% 2030 4% 2030 4% 2031 2% 2031 2% 2032 4% 2032 4% 2033 3% 2033 2% 2034+ 2% 2034+
Slide 16: Core Strategies
FOURTH QUARTER 2023 Core Strategies 16
Slide 17: Leasing
FOURTH QUARTER 2023 STRATEGIC, DISCIPLINED & DATA-DRIVEN Leasing Drive Rents Diversify the Assortment Increase Occupancy • Driving rents with higher rent spreads, strong renewal rates, shifting variable rent to fixed and converting temp tenants to permanent • Introducing non-retail uses including fo
Slide 18: Operations
FOURTH QUARTER 2023 STRATEGIC, DISCIPLINED & DATA-DRIVEN Operations Drive Operational Efficiencies Grow Ancillary Revenue Expand ESG Initiatives Maximize Asset Value • Decentralized to empower field managers to drive the performance of their asset • Participating in revenue generation ◦ Focus on bus
Slide 19: Marketing
FOURTH QUARTER 2023 STRATEGIC, DISCIPLINED & DATA-DRIVEN Marketing Data & Insights Led Digital First Platform Modern Approach to Loyalty ROI-Focused Spend • Optimizing marketing spend with an ROI focus • All-new TangerClub broadens addressable audience with new free offering while subscription unloc
Slide 20: Financial Drivers and External Growth
FOURTH QUARTER 2023 • Strong Same Center NOI growth potential ◦ Amplified by growing & new sources of income and significant real estate value creating opportunities STRATEGIC, DISCIPLINED & DATA-DRIVEN • Investment grade, low-leveraged and flexible balance sheet provides capacity to grow Financial
Slide 21: Strong Balance Sheet
FOURTH QUARTER 2023 LIMITED USE OF SECURED FINANCING (1) Strong Balance Sheet 14% $0.2B $1.4B 86% $1.6 Secured financing Unsecured financing BILLION DEBT $4.7 33% BILLION TOTAL (1) LIMITED FLOATING RATE EXPOSURE ENTERPRISE VALUE $3.1 BILLION 6% $0.1B 67% EQUITY $1.5B 94% (1) CAPITAL STRUCTURE (% of
Slide 22: Manageable Debt Maturities
FOURTH QUARTER 2023 Manageable Debt Maturities $403.7 $400.0 $371.6 Effective Interest Rate (1) 3.5% $351.7 Years to Maturity (2) 4.7 Term Loan Interest Rate Strategy*: Company Notional Bank Adjusted Effective Date Maturity Date Amount Pay Rate Fixed Pay Rate** Interest rate swaps: At December31, 20
Slide 23: Solid Debt Ratios
FOURTH QUARTER 2023 Solid Debt Ratios IN COMPLIANCE WITH ALL DEBT COVENANTS Key Bond Covenants Actual Limit Total consolidated debt to adjusted total assets 38% < 60% Total secured debt to adjusted total assets 2% < 40% Total unencumbered assets to unsecured debt 251% > 150% Consolidated income avai
Slide 24: External Growth
FOURTH QUARTER 2023 External Growth 24
Slide 25: Tanger's Newest Markets
Tanger's Newest Markets Nashville, TN Asheville, NC Huntsville, AL 25
Slide 26: Key Facts: Nashville
KEY FACTS Opened October 27, 2023 Growing Nashville Market One of the fastest growing metropolitan areas in the U.S. Dynamic Retail Mix 60 stores including acclaimed food & beverage and new to portfolio brands Transformational Design Incorporating "The Green," a central community space for programmi
Slide 27: Grand Opening Weekend October 2023
GRAND OPENING WEEKEND OCTOBER 2023 27
Slide 28: Key Facts: Asheville Acquisition
KEY FACTS Acquired November 13, 2023 for $70M All-cash, off-market transaction Popular and Growing Asheville Market Dynamic market with strong tourism and world renowned food and music scene Center to Benefit from Tanger Platform and Geographical Footprint 13 Tanger Outlet centers in nearby states w
Slide 29: Asheville, NC Market Insights
Asheville, NC TRADE AREA Market Insights STRONG TRADE AREA DEMOGRAPHICS Thriving Tourism Industry Attracts more than 12.5M annual visitors spending $2.9B (2022) 2.2M Asheville, NC MSA Vibrant Culture & Food Scene 2023 Population Located in the heart of the Blue Ridge I-40 Mountains +2.2% Home to Bil
Slide 30: Asheville, NC
Blue Ridge Mountains Aerial View of Downtown Asheville Tanger Asheville Rendering of $400M Airport Expansion Credit: Gresham Smith The Omni Grove Park Inn ASHEVILLE, NC Biltmore Estate River Arts District $500M+ I-26 Expansion 30
Slide 31: Key Facts: Huntsville Acquisition
KEY FACTS Acquired November 30, 2023 for $193.5M Funded using cash on hand and available liquidity First Acquisition of Open-Air Lifestyle Center Dominant shopping destination in the region An Attractive and Growing Market A tech and military hub experiencing outsized investment, employment, residen
Slide 32: Largest City in Alabama: Huntsville, AL
Largest City in Alabama Huntsville, AL • 10+ years of rapid population growth, ranking in the top places to live in the U.S. for 3 years STRONG DEMOGRAPHICS • 3.9M visitors creating a $2.1B economic impact • 135K+ employees within 5 miles of the center 518K The Rocket City Important location for spa
Slide 33: Bridge Street Town Centre
BRIDGE STREET TOWN CENTRE A TANGER PROPERTY 33 33
Slide 34: Huntsville, Alabama "The Rocket City"
Huntsville, Alabama "The Rocket City" Government, Defense and Advanced Tech Hub Manufacturing Hub Home to 80+ federal organizations and contractors, and 300+ companies, representing 70k+ employees $2.3B Automotive Manufacturing Facility Redstone Arsenal (38K acres): • Dominant federal R&D, testing,
Slide 35: Investment Targets Bridge Street Town Centre
BRIDGE STREET TOWN CENTRE BSTC Acquisition Well Aligned with External Growth Strategy and Core Competencies to Add Value • Leveraging strength of retail operating, leasing, and marketing platform • Team of professionals with experience across the retail spectrum • Dynamic and diversified tenant rost
Slide 36: ESG at Tanger
FOURTH QUARTER 2023 STRATEGIC PILLARS OUR PEOPLE OUR COMMUNITY Creating a Positive Workplace Contributing to Strong, Vibrant Communities We aim to create an engaging, equitable We actively serve our communities through workplace where all people are welcomed, partnerships with nonprofits, community
Slide 37: Earnings & 2024 Guidance
FOURTH QUARTER 2023 $ PER SHARE $2.10 $2.00 $1.96 $1.76 $1.83 $2.02 $1.00 $0.92 $0.91 $0.77 $0.83 Earnings & $— $0.08 2024 Guidance (1) (2) (3) 2021 2022 2023 2024 Guidance Net Income Core FFO Low High GUIDANCE FOR 2024 Range Range Net income per diluted share $0.83 $0.91 Core FFO per diluted share
Slide 38: Non-GAAP Supplemental Measures
FOURTH QUARTER 2023 Non-GAAP Supplemental Measures 38
Slide 39: Non-GAAP Reconciliations
FOURTH QUARTER 2023 Below is a reconciliation of net income available to common shareholders to FFO and Core YEAR ENDED DECEMBER 31, FFO available to common shareholders (in thousands, except per share information): 2023 2022 2021 NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 97,965 $ 81,194 $ 8,314
Slide 40: Non-GAAP Reconciliations
FOURTH QUARTER 2023 YEAR ENDED DECEMBER 31, Below is a reconciliation of net income to Portfolio NOI and Same Center NOI for the consolidated portfolio and total portfolio at pro rata share (in thousands): 2023 2022 % Change NET INCOME $ 103,882 $ 85,831 21.0 % Adjusted to exclude: Equity in earning
Slide 41: Non-GAAP Reconciliations
YEAR ENDED DECEMBER 31, Below is a reconciliation of net income to EBITDAre and Adjusted EBITDAre (in thousands): FOURTH QUARTER 2023 2023 2022 NET INCOME $ 103,882 $ 85,831 Adjusted to exclude: Interest expense, net 38,149 43,372 Income tax expense (benefit) (408) 138 Depreciation and amortization
Slide 42: Non-GAAP Definitions
FOURTH QUARTER 2023 Funds From Operations (“FFO”) is a widely used measure of the which is described in the section below. We believe it is useful operating performance for real estate companies that for investors to have enhanced transparency into how we supplements net income (loss) determined in
Slide 43: Non-GAAP Definitions: Core FFO and NOI
FOURTH QUARTER 2023 Core FFO Portfolio Net Operating Income and Same Center Net Core FFO has limitations as an analytical tool. Some of these Operating Income If applicable, we present Core FFO as a supplemental measure of our performance. We define Core FFO as FFO further limitations are: We presen
Slide 44: Non-GAAP Definitions: EBITDAre
FOURTH QUARTER 2023 revenues and expenses involved in owning and operating real EBITDAre and Adjusted EBITDAre EBITDAre and Adjusted EBITDAre have significant limitations as estate assets and provide a perspective not immediately analytical tools, including: We present Earnings Before Interest, Taxe
Slide 45: Notes and Additional Information
FOURTH QUARTER 2023 Notes and Additional Information 45
Slide 46: Notes
FOURTH QUARTER 2023 Page 4 (1) Includes Tanger's pro rata share of unconsolidated joint ventures (2) Metropolitan Statistical Area as defined by the U.S. Census Bureau; Includes Ottawa, ON center located in a top 5 census metropolitan area as defined by Statistics Canada Page 13 (1) As of December 3
Slide 47: Notes (continued)
FOURTH QUARTER 2023 Page 37 (continued) (2) Net income available to common shareholders in 2022 was impacted by a $3.2 million ($0.03 per share) gain on the sale of a non-core outlet center located in Blowing Rock, North Carolina; a $2.4 million ($0.02 per share) gain on sale of the corporate aircra
Slide 48: Tanger's ESG Approach
FOURTH QUARTER 2023 At Tanger, we work to create long-term value for our stakeholders, retail partners and employee team members while we build strong communities and consider the future of our planet. Through our environmental, social, and governance (ESG) practices and programs, we aim to create p
Slide 49: About
About 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 comp