Slide 1: Management Presentation
AUGUST 1, 2024 Management Presentation
Slide 2: Safe Harbor Statements
SECOND QUARTER 2024 Certain statements made in this presentation contain forward-looking or mitigate its impact); the fact that certain of our properties are subject to statements within the meaning of Section 27A of the Securities Act of 1933, ownership interests held by third parties, whose intere
Slide 3: Table of Contents
SECOND QUARTER 2024 Our Mission and Vision 4 Tanger at a Glance 5 Our Portfolio 6 Table of Contents Foundations of Corporate Growth 8 The Outlet Channel 11 Operating Metrics 15 Core Strategies 18 External Growth 26 Our Executive Team and Board 40 Non-GAAP Supplemental Measures 44 Notes and Additiona
Slide 4: Our Mission and Vision
SECOND QUARTER 2024 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 4
Slide 5: Tanger at a Glance
SECOND QUARTER 2024 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 6: 40 Retail Centers | 15.6M SF
SECOND QUARTER 2024 40 Retail Centers | 15.6M SF Open-air portfolio well positioned 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 7: Strong Portfolio Demographic Drivers
SECOND QUARTER 2024 Strong Portfolio Demographic Drivers Our centers are located in fast-growing markets that benefit from above average growth along with tourism and seasonal residents Heavy Presence in Top 50 MSAs and Leading Tourist Destinations Broad Shopper Catchment Areas Above Average Populat
Slide 8: Foundations of Tanger's Corporate Growth
SECOND QUARTER 2024 Foundations of Tanger’s Corporate Growth Internal Real Estate External Growth Intensification Growth Deliver strong Enhance and create Grow Tanger through Same Center NOI value from existing selective and disciplined growth real estate asset base acquisition and development All W
Slide 9: Key Initiatives Supporting Growth
SECOND QUARTER 2024 Key Initiatives Supporting Growth Strategic, Disciplined & Data-Driven ACTIVE LEASING EFFICIENT OPERATIONS TARGETED MARKETING STRATEGIC FINANCE • Grow Total Rent - Base Rent • Grow Ancillary Revenues • Drive Sales & Traffic • Prudent Balance Sheet and Expense Recoveries • Drive O
Slide 10: The Outlet Channel
SECOND QUARTER 2024 The Outlet Channel 10
Slide 11: Retailer Value Proposition
SECOND QUARTER 2024 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 12: Retailers' Outlet Strategy
SECOND QUARTER 2024 Clear excess inventory and maintain brand integrity THE OUTLET CHANNEL Use excess materials with made-for-outlet inventory Retailers’ Outlet Strategy Hybrid and full price offerings Retailers use the channel in a variety of ways that best align with their business model "Try befo
Slide 13: Consumer Value Proposition
SECOND QUARTER 2024 Brand Names at Consistent Value THE OUTLET CHANNEL Social, Experiential Shopping Consumer Value Proposition Tactile Interaction with Products Our centers give shoppers the ability to find their favorite brands at the value they want and provide a variety of options Instant Gratif
Slide 14: Strong, Dynamic & Diverse Tenant Mix
SECOND QUARTER 2024 Strong, Dynamic & Diverse Tenant Mix Athleta; Ann Taylor; Aéropostale; Coach; Under Armour; Aerie; Calvin Klein; Converse; Banter by Columbia 66.1% Top 10 Banana Chicos; Boardriders Kate Spade Under Armour American Eagle Tommy Nike Piercing Pagoda; Tenant Republic; Lane Bryant; O
Slide 15: Operating Metrics
SECOND QUARTER 2024 10 CONSECUTIVE QUARTERS OF Operating Metrics POSITIVE RENT SPREADS (Total Portfolio at Pro Rata Share Except Where Noted) 52.0% 48.0% 96.5% Occupancy (1) 44.0% 40.0% 36.0% +15.1% Blended Cash Rent Spreads for Executed Comparable Leases (2)(3)(4) 32.0% 28.0% 24.0% 6.6% Change in S
Slide 16: Solid Performance With Sustained Occupancy
SECOND QUARTER 2024 Solid Performance With Sustained Occupancy 97.9% 97.5% 97.5% 97.2% 96.8% 97.1% 97.0% 97.3% 97.2% 97.2% 97.1% 96.5% 95.3% 92.2% 2015 2018 2021 2014 2017 2020 2023 2Q24 2Q24 2016 2019 2022 2Q23 2Q23 Total Portfolio Same Center Total portfolio occupancy represents period-end occupan
Slide 17: Upcoming Expirations Provide Opportunity
SECOND QUARTER 2024 Upcoming Expirations Provide Opportunity PERCENTAGE OF ANNUAL BASE RENT PERCENTAGE OF TOTAL GLA 2024 13% 2024 13% 2025 18% 2025 19% 2026 17% 2026 17% 2027 15% 2027 14% 2028 14% 2028 15% 2029 7% 2029 7% 2030 4% 2030 4% 2031 2% 2031 2% 2032 4% 2032 4% 2033 3% 2033 3% 2034+ 3% 2034+
Slide 18: Core Strategies
SECOND QUARTER 2024 Core Strategies 18
Slide 19: Leasing
SECOND QUARTER 2024 STRATEGIC, DISCIPLINED & DATA-DRIVEN Leasing Drive Rents Diversify the Assortment Increase Occupancy Activate Peripheral Land • Driving rents with higher rent spreads, shifting variable rent to fixed and converting temp tenants to permanent • Enhancing portfolio with an elevated
Slide 20: Operations
SECOND QUARTER 2024 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 21: Marketing
SECOND QUARTER 2024 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 guests and retail partners to drive topline sales • Connecting guests to the brands and value t
Slide 22: Financial Drivers and External Growth
SECOND QUARTER 2024 • Strong NOI growth potential ◦ Increasing rents and operating efficiently amplified by other income initiatives and significant real estate value creating opportunities • Low-leveraged, investment grade and flexible balance STRATEGIC, DISCIPLINED & DATA-DRIVEN sheet provides cap
Slide 23: Strong Balance Sheet
SECOND QUARTER 2024 LIMITED USE OF SECURED FINANCING (1) Strong Balance Sheet 14% $0.2B 86% $1.4B $1.6 Secured financing Unsecured financing BILLION DEBT $4.7 34% BILLION TOTAL LIMITED FLOATING RATE EXPOSURE (1) ENTERPRISE VALUE $3.1 6% $0.1B 66% BILLION EQUITY $1.5B 94% CAPITAL STRUCTURE (1) (% of
Slide 24: Manageable Debt Maturities
SECOND QUARTER 2024 Manageable Debt Maturities $585 in Effective Interest Rate (1) 4.1% borrowing capacity Years to Maturity (2) 4.2 $403 $400 • Amended, Increased and Extended $358 $352 Unsecured Lines of Credit in April 2024 ◦ Borrowing capacity increased by $100 million to $620 million ◦ Term ext
Slide 25: Solid Debt Ratios
SECOND QUARTER 2024 Solid Debt Ratios IN COMPLIANCE WITH ALL DEBT COVENANTS Key Bond Covenants Actual Limit Total consolidated debt to adjusted total assets 39% < 60% Total secured debt to adjusted total assets 2% < 40% Total unencumbered assets to unsecured debt 250% > 150% Consolidated income avai
Slide 26: External Growth
SECOND QUARTER 2024 External Growth 26
Slide 27: External Growth Initiatives
SECOND QUARTER 2024 External Growth Initiatives 3-Pronged Growth Strategy Recent Portfolio Expansions 1. Outlets: Acquisitions, Development, Joint Ventures, Strategic Management Agreements (management) (development) (acquisition, previously Asheville Outlets) 2. Adjacent to Tanger’s Outlets: Retail
Slide 28: Tanger's Newest Markets
TANGER'S NEWEST MARKETS Nashville, TN Asheville, NC Huntsville, AL Tanger's Bridge Street Town Centre 28
Slide 29: Nashville, TN Key Facts
SECOND QUARTER 2024 KEY FACTS Opened October 27, 2023 Growing Nashville Market One of the fastest growing metropolitan areas in the U.S. Dynamic Retail Mix I-24 60 stores including acclaimed food and Downtown Nashville beverage and new to portfolio brands NASHVILLE, TN Transformational Design Incorp
Slide 30: Nashville: Rapidly Growing Market
Rapidly Growing Market Nashville, TN 2.1M Population +29% Growth (2010-2023) #2 Fastest Growing MSA in the U.S. among markets STRONG MARKET with at least 2M residents DEMOGRAPHICS (Nashville MSA) Record Breaking Tourism to Nashville-Davidson County in 2022 2.1M 14.9M visitors, +17% YoY $9.2B total v
Slide 31: Grand Opening Weekend October 2023
GRAND OPENING WEEKEND OCTOBER 2023 31
Slide 32: Asheville, NC Key Facts
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 33: 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% Asheville H
Slide 34: 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 34
Slide 35: Huntsville, AL Key Facts
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 36: 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 37: Bridge Street Town Centre
BRIDGE STREET TOWN CENTRE A TANGER PROPERTY 37 37
Slide 38: 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 39: 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 40: Experienced and Engaged Executive Team and Board
SECOND QUARTER 2024 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 41: ESG at Tanger
SECOND QUARTER 2024 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 42: Tanger's ESG Approach
SECOND QUARTER 2024 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 43: Earnings & 2024 Guidance
SECOND QUARTER 2024 $ PER SHARE $2.12 $1.96 $2.00 $1.83 $2.05 $1.05 $1.00 $0.92 $0.92 $0.94 $0.77 $0.85 $0.45 $0.43 Earnings & $— 2024 Guidance (1) (2) (2) (3) 2022 2023 2024 Guidance 2Q23 YTD 2Q24 YTD Net Income Core FFO Low High GUIDANCE FOR 2024 Range Range Net income per diluted share $0.85 $0.9
Slide 44: Non-GAAP Supplemental Measures
SECOND QUARTER 2024 Non-GAAP Supplemental Measures 44
Slide 45: Non-GAAP Reconciliations
SECOND QUARTER 2024 Below is a reconciliation of net income (loss) available to common shareholders to FFO and YEAR ENDED DECEMBER 31, Core FFO available to common shareholders (in thousands, except per share information): 2023 2022 NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 97,965 $ 81,194 Nonco
Slide 46: Non-GAAP Reconciliations
SECOND QUARTER 2024 Below is a reconciliation of net income available to common shareholders to FFO and Core SIX MONTHS ENDED JUNE 30, FFO available to common shareholders (in thousands, except per share information): 2024 2023 NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 46,793 $ 47,287 Noncontrol
Slide 47: Non-GAAP Reconciliations
SECOND QUARTER 2024 Below is a reconciliation of net income to Portfolio NOI for the consolidated YEAR ENDED DECEMBER 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 $ 103,882
Slide 48: Non-GAAP Reconciliations
SECOND QUARTER 2024 Below is a reconciliation of net income to Portfolio NOI for the consolidated SIX MONTHS ENDED JUNE 30, portfolio and Same Center NOI for the consolidated portfolio and including unconsolidated joint ventures at pro rata share (in thousands): 2024 2023 % Change NET INCOME $ 49,22
Slide 49: Non-GAAP Reconciliations
SECOND QUARTER 2024 SIX MONTHS ENDED JUNE 30, Below is a reconciliation of net income to EBITDAre and Adjusted EBITDAre (in thousands): 2024 2023 NET INCOME $ 49,221 $ 50,160 Adjusted to exclude: Interest expense, net 29,595 19,301 Income tax expense (benefit) (248) (36) Depreciation and amortizatio
Slide 50: Non-GAAP Definitions
SECOND QUARTER 2024 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 51: Core FFO and Portfolio NOI definitions
SECOND QUARTER 2024 Core FFO Portfolio Net Operating Income and Same Center Net Core FFO has limitations as an analytical tool. Some of these Operating Income We present Core Funds From Operations ("Core FFO") as a supplemental measure of our performance. We define Core FFO limitations are: We prese
Slide 52: EBITDAre and Adjusted EBITDAre definitions
SECOND QUARTER 2024 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 53: Notes and Additional Information
SECOND QUARTER 2024 Notes and Additional Information 53
Slide 54: Notes
SECOND QUARTER 2024 Page 5 (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 15 (1) As of June 30, 2
Slide 55: Notes (continued)
SECOND QUARTER 2024 Page 43 (1) Net income available to common shareholders in 2022 was impacted by a $0.03 per share gain on the sale of a non-core outlet center located in Blowing Rock, North Carolina; a $0.02 per share gain on sale of the corporate aircraft; and general and administrative expense
Slide 56: 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 inc