Tanger Inc. · NYSE:SKT

Tanger — Q1 2023 Earnings Presentation

49 slides from Tanger's earnings presentation, Apr 28, 2023

1. Slide 1: Management Presentation

   MANAGEMENT PRESENTATION April 27, 2023

2. Slide 2: Safe Harbor Statements

   FIRST QUARTER 2023 This presentation contains certain forward-looking statements within their bankruptcy, early termination or closing could adversely affect the meaning of Section 27A of the Securities Act of 1933, as us; the fact that certain of our properties are subject to ownership amended, and

3. Slide 3: Table of Contents

   FIRST QUARTER 2023 Table of Contents TANGER OUTLETS AT A GLANCE 4 OUR BOARD AND EXECUTIVE TEAM 6 OUR MISSION AND VISION 7 THE OUTLET CHANNEL 8 POSITIONED FOR GROWTH 10 OPERATING METRICS 12 CORE STRATEGIES 16 NON-GAAP SUPPLEMENTAL MEASURES 31 NOTES AND ADDITIONAL INFORMATION 44 3

4. Slide 4: Long-Term Foundation Positioned for Growth

   FIRST QUARTER 2023 TANGER OUTLETS - AT A GLANCE Long-Term Foundation Positioned for Growth 42-year history as a pure-play outlet REIT • Attractive and integral sales channel for brands and retailers 30 years publicly traded on the NYSE (SKT) • Centers sought out by consumers for branded merchandise

5. Slide 5: 37 Well-Positioned Properties

   FIRST QUARTER 2023 37 Well-Positioned Properties* Open-Air Portfolio with Locations in High-Frequency Tourist Destinations and Suburbs of Vibrant & Fast-Growing Markets CONSOLIDATED OR JOINT VENTURE PROPERTY NEW DEVELOPMENT STRATEGIC PARTNERSHIP * Includes 1 center under development 5

6. Slide 6: Experienced and Engaged Board and Executive Team

   FIRST QUARTER 2023 BOARD OF DIRECTORS Steven B. Tanger Stephen Yalof David B. Henry Jeffrey B. Citrin Sandeep L. Mathrani Executive Chair of Director, President and Lead Director Director Director the Board Chief Executive Officer Experienced and Engaged Board and Thomas J. Reddin Director Bridget M

7. Slide 7: Our Mission and Our Vision

   FIRST QUARTER 2023 TANGER OUTLETS Our Mission Our Vision To deliver the best value, Using customer insights experience and opportunity and experience to inform for our communities, the future of shopping stakeholders and partners 7

8. Slide 8: Retailer Value Proposition

   FIRST QUARTER 2023 Productive Sales Model Lower Cost and Clearance of Occupancy Channel THE OUTLET CHANNEL Lower Higher Customer Retailer Value Margins Acquisition Costs Proposition One of the most profitable channels for retailers and an important component of the omnichannel retail strategy Direct

9. Slide 9: Consumer Value Proposition

   FIRST QUARTER 2023 Brand Names Social, at Consistent Experiential Value Shopping THE OUTLET CHANNEL Consumer Value Proposition Instant Tactile Gratification of Interaction with In-Person Products Shopping 9

10. Slide 10: Positioned for Growth: Strategic, Disciplined, Data-Driven

    FIRST QUARTER 2023 POSITIONED FOR GROWTH Strategic Ÿ Disciplined Ÿ Data-Driven LEASING OPERATIONS MARKETING FINANCE • Grow Total Rent • Grow Ancillary Revenues • Drive Sales Growth • Prudent Balance Sheet Management • Increase Occupancy • Drive Operational Efficiencies • Performance Marketing with P

11. Slide 11: Strong and Dynamic Tenant Mix

    FIRST QUARTER 2023 Strong and 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.” Todd Kahn, Tapestry President “HUGO BOSS is excited to be able to increase its presence in 65.2

12. Slide 12: Operating Metrics

    FIRST QUARTER 2023 Operating Metrics 12

13. Slide 13: Operating Metrics: 96.5% Occupancy

    FIRST QUARTER 2023 Operating Metrics (Total Portfolio at Pro Rata Share Except Where Noted) 8 CONSECUTIVE QUARTERS OF IMPROVING RENT SPREADS 96.5% Occupancy (1) 40.0% 36.0% 32.0% Blended Cash Rent Spreads for +13.8% Executed Comparable Leases (2)(3)(4) 28.0% 24.0% 20.0% 16.0% 13.8% YOY Change in +7.

14. Slide 14: Solid Performance With Sustained Occupancy

    FIRST 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% 92.2% 95.3% 94.3% 96.5% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1Q22 1Q23 Represents period-end occupancy for consolidated outlet centers and pro rata share of unconsoli

15. Slide 15: Upcoming Expirations Provide Opportunity

    FIRST QUARTER 2023 Upcoming Expirations Provide Opportunity PERCENTAGE OF PERCENTAGE OF ANNUAL BASE RENT TOTAL GLA 2023 13% 2023 13% 2024 23% 2024 23% 2025 17% 2025 17% 2026 13% 2026 13% 2027 12% 2027 11% 2028 10% 2028 11% 2029 4% 2029 3% 2030 3% 2030 3% 2031 1% 2031 2% 2032 3% 2032 3% 1% 1% 2033+ 2

16. Slide 16: Core Strategies

    FIRST QUARTER 2023 Core Strategies 16

17. Slide 17: Leasing

    FIRST 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 includin

18. Slide 18: Operations

    FIRST 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

19. Slide 19: Growing Non-Rental Revenues

    FIRST QUARTER 2023 Growing Non-Rental Revenues THROUGH MARKETING PARTNERSHIPS AND MEDIA On-center activations and partnerships with national brands are growing across our entire portfolio as brands seek to leverage the traffic and customers we drive to Tanger shopping centers. 19

20. Slide 20: ESG at Tanger

    FIRST QUARTER 2023 STRATEGIC PILLARS OUR PEOPLE OUR COMMUNITY Creating a Positive Workplace Contributing to Strong, Vibrant Communities We aim to create an engaging, equitable workplace where all people We actively serve our communities through are welcomed, valued and have partnerships with nonprof

21. Slide 21: 2022 Progress Towards Long-Term Sustainability Goals

    FIRST QUARTER 2023 ESG AT TANGER 2022 Progress Towards Long-Term Sustainability Goals • Announced our intent to achieve net zero Scope 1 and 2 • Strategically Invested in Sustainability emissions by 2050 ◦ Procured 6.2 MW of photovoltaic panels for four new solar • Signed on to the United Nations Gl

22. Slide 22: Marketing

    FIRST QUARTER 2023 STRATEGIC • DISCIPLINED • DATA-DRIVEN Marketing Data & Insights Led | Digital First Platform | Modern Approach to Loyalty | ROI-Focused Spend • Leveraging data to unlock greater value for our shoppers and our business and drive topline sales • Growing TangerClub membership through

23. Slide 23: Driving Demand For The Tanger Platform

    FIRST QUARTER 2023 INVESTMENTS THAT DRIVE CENTER VISITS, IMPROVED AVERAGE SPEND AND LOYALTY ACQUISITION + ENGAGEMENT • Increasing Focus on Measurable Performance Marketing vs. Advertising • Lifetime Value-Focused Campaigns that Drive Frequency and Increased Average Spend • Simplified Digital Loyalty

24. Slide 24: Financial Drivers and External Growth

    FIRST QUARTER 2023 • Strong Same Center NOI growth potential ◦ Amplified by growing & new sources of income and significant real STRATEGIC • DISCIPLINED • DATA-DRIVEN estate value creating opportunities • Investment grade, low-leveraged and flexible balance sheet provides capacity to grow Financial

25. Slide 25: Strong Balance Sheet

    FIRST QUARTER 2023 (1) LIMITED USE OF SECURED FINANCING Strong Balance Sheet 12% $1.6 $2.2 88% BILLION BILLION DEBT EQUITY Square feet encumbered Square feet unencumbered Net Debt of $1.4B 38% $3.5 BILLION TOTAL LIMITED FLOATING RATE EXPOSURE (3) ENTERPRISE VALUE $0.2 7% $0.1B 62% BILLION CASH (2) $

26. Slide 26: Manageable Maturities

    FIRST QUARTER 2023 Manageable Maturities Effective Interest Rate (1) 3.5% Years to Maturity (2) 5.4 $400.0 $375.0 $359.6 $351.7 $47.4 $32.3 $35.5 $0.0 $6.3 $0.0 $0.0 $0.0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Lines of Credit Mortgage Debt Term Loans Bond Debt JV Mortgage Debt (at pr

27. Slide 27: Quality Ratios

    FIRST QUARTER 2023 Quality Ratios IN COMPLIANCE WITH ALL DEBT COVENANTS Key Bond Covenants Actual Limit Total consolidated debt to adjusted total assets 40 % < 60% Total secured debt to adjusted total assets 2% < 40% Total unencumbered assets to unsecured debt 239 % > 150% Consolidated income availa

28. Slide 28: Nashville Development: Groundbreaking to Planned Opening

    FIRST QUARTER 2023 MAY 2022 Groundbreaking FALL 2023 Planned Opening 290K SF Approximate Size $142M – $150M Estimated Total Development Cost 7.0% – 7.5% Projected Stabilized Yield 28

29. Slide 29: Palm Beach Strategic Partnership with Clarion Partners

    FIRST QUARTER 2023 JULY 2022 Launched Strategic Partnership with Clarion Partners to Assume Marketing, Leasing and Property Management Responsibilities 36TH CENTER In Tanger Outlets Portfolio I-95 & PALM BEACH LAKES BLVD Location Serves Millions of Residents and Over 8.2 Million Visitors Annually “W

30. Slide 30: Earnings and 2023 Guidance

    FIRST QUARTER 2023 $ PER SHARE $2.00 $1.83 $1.90 $1.76 $1.82 $1.50 $0.97 $1.00 $0.77 $0.89 $0.45 $0.46 $0.50 $0.19 $0.22 $0.08 Earnings and $— 2021 (1) 2022 (2) 2023 Guidance 1Q22 1Q23 (3) 2023 Guidance Net Income Core FFO Low High GUIDANCE FOR 2023 Range Range Net income per diluted share $0.89 $0.

31. Slide 31: Non-GAAP Supplemental Measures

    FIRST QUARTER 2023 Non-GAAP Supplemental Measures 31

32. Slide 32: Non-GAAP Reconciliations

    FIRST QUARTER 2023 Below is a reconciliation of net income (loss) available to common shareholders to FFO YEAR ENDED DECEMBER 31, available to common shareholders (in thousands, except per share information): 2022 2021 NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 81,194 $ 8,314 Noncontrolling inter

33. Slide 33: Non-GAAP Reconciliations

    FIRST QUARTER 2023 YEAR ENDED DECEMBER 31, Below is a reconciliation of FFO available to common shareholders to Core FFO available to common shareholders (in thousands, except per share information): 2022 2021 FFO AVAILABLE TO COMMON SHAREHOLDERS (2) $ 201,523 $ 138,114 As further adjusted for: Comp

34. Slide 34: Non-GAAP Reconciliations

    FIRST QUARTER 2023 Below is a reconciliation of net income available to common shareholders to FFO available THREE MONTHS ENDED MARCH 31, to common shareholders (in thousands, except per share information): 2023 2022 NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 23,342 $ 20,303 Noncontrolling intere

35. Slide 35: Non-GAAP Reconciliations

    FIRST QUARTER 2023 THREE MONTHS ENDED MARCH 31, Below is a reconciliation of FFO available to common shareholders to Core FFO available to common shareholders (in thousands, except per share information): 2023 2022 FFO AVAILABLE TO COMMON SHAREHOLDERS (2) $ 52,030 $ 49,443 Non-GAAP As further adjust

36. Slide 36: Non-GAAP Reconciliations

    FIRST QUARTER 2023 Below is a reconciliation of net income to Portfolio NOI for the consolidated portfolio and YEAR ENDED DECEMBER 31, Same Center NOI for the consolidated portfolio and including unconsolidated joint ventures at pro rata share (in thousands): 2022 2021 % Change NET INCOME $ 85,831 $

37. Slide 37: Non-GAAP Reconciliations

    FIRST QUARTER 2023 Below is a reconciliation of net income to Portfolio NOI for the consolidated THREE MONTHS ENDED MARCH 31, portfolio and Same Center NOI for the consolidated portfolio and including unconsolidated joint ventures at pro rata share (in thousands): 2023 2022 % Change NET INCOME $ 24,

38. Slide 38: Non-GAAP Reconciliations

    FIRST QUARTER 2023 THREE MONTHS ENDED Below is a reconciliation of net income to EBITDAre and Adjusted EBITDAre (in thousands): MARCH 31, 2023 2022 NET INCOME $ 24,860 $ 21,462 Adjusted to exclude: Interest expense, net 9,779 11,533 Income tax expense (200) 23 Depreciation and amortization 25,893 26

39. Slide 39: Non-GAAP Reconciliations

    FIRST QUARTER 2023 Below is a reconciliation of estimated diluted net income per share to REVISED PREVIOUS estimated diluted FFO and Core FFO per share guidance for the year ended LOW HIGH LOW HIGH December 31, 2023: RANGE RANGE RANGE RANGE ESTIMATED DILUTED NET INCOME PER SHARE $ 0.89 $ 0.97 $ 0.87

40. Slide 40: Non-GAAP Definitions

    FIRST QUARTER 2023 Funds From Operations (“FFO”) is a widely used measure of the based on our FFO or Core FFO, which is described in the section operating performance for real estate companies that supplements below. We believe it is useful for investors to have enhanced net income (loss) determined

41. Slide 41: Non-GAAP Definitions

    FIRST QUARTER 2023 Core FFO If applicable, we present Core FFO as a supplemental measure of Core FFO has limitations as an analytical tool. Some of these our performance. We define Core FFO as FFO further adjusted to limitations are: eliminate the impact of certain items that we do not consider • Co

42. Slide 42: Non-GAAP Definitions

    FIRST QUARTER 2023 Portfolio Net Operating Income and Same Center Net Operating (loss), FFO or Core FFO. Because Same Center NOI excludes Income properties developed, redeveloped, acquired and sold; as well as We present portfolio net operating income (“Portfolio NOI”) and non-cash adjustments, gain

43. Slide 43: Non-GAAP Definitions

    FIRST QUARTER 2023 EBITDAre and Adjusted EBITDAre EBITDAre and Adjusted EBITDAre have significant limitations as analytical tools, including: We present Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”) and Adjusted EBITDAre, • They do not reflect our net in

44. Slide 44: Notes and Additional Information

    FIRST QUARTER 2023 Notes and Additional Information 44

45. Slide 45: Notes

    FIRST 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 March 31, 2

46. Slide 46: Notes (continued)

    FIRST QUARTER 2023 Page 26 • Assumes all extension options are exercised; although some mortgage debt is amortizing, outstanding balance is shown in the month of final maturity • Excludes debt discounts, premiums, and origination costs • Includes pro rata share of debt maturities related to unconsol

47. Slide 47: Notes (continued)

    FIRST QUARTER 2023 Page 32 - 39 (1) 2021 includes a $3.6 million charge related to the foreign currency effect of the sale of the Saint-Sauveur, Quebec property by the RioCan joint venture in March 2021. (2) Assumes the Class A common limited partnership units of the Operating Partnership held by th

48. Slide 48: Tanger's ESG Approach

    FIRST QUARTER 2023 At Tanger, we work to create long-term value for our shareholders, retail partners and employee team members while we build strong communities and consider the future of our planet. We integrate environmental, social and governance (ESG) principles into our business practices and

49. Slide 49: About Tanger Factory Outlet Centers, Inc. / Investor Relations

    About Tanger Factory Outlet Centers, Inc. Tanger Factory Outlet Centers, Inc. (NYSE: SKT) is a leading operator of upscale open-air outlet centers that owns (or has an ownership interest in) and/or manages a portfolio of 36 centers with an additional center currently under development. Tanger’s oper

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