Slide 1: Management Presentation
NOVEMBER 6, 2024 Management Presentation
Slide 2: Safe Harbor Statements
THIRD 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 interes
Slide 3: Table of Contents
THIRD 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 27 Non-GAAP Supplemental Measures 31 Notes and Additional
Slide 4: Our Mission and Vision
THIRD 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
THIRD 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 • $3.8B market capitalization (1) • Centers sought out by cons
Slide 6: 40 Retail Centers | 15.6M SF
THIRD 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 Consolidated Open-Air Lifestyle Center Strategic Partnerships Corporate Headquarters A
Slide 7: Strong Portfolio Demographic Drivers
THIRD 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 Populati
Slide 8: Foundations of Tanger's Corporate Growth
THIRD 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 Wh
Slide 9: Key Initiatives Supporting Growth
THIRD 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 Op
Slide 10: The Outlet Channel
THIRD QUARTER 2024 The Outlet Channel 10
Slide 11: Retailer Value Proposition
THIRD 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 T
Slide 12: Retailers' Outlet Strategy
THIRD 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 befor
Slide 13: Consumer Value Proposition
THIRD 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 Gratifi
Slide 14: Strong, Dynamic & Diverse Tenant Mix
THIRD QUARTER 2024 Strong, Dynamic & Diverse Tenant Mix Athleta; Ann Taylor; Aéropostale; Coach; Under Armour; Aerie; Calvin Klein; Converse; Banter by Columbia 66.4% Top 10 Banana Chicos; Boardriders Kate Spade Under Armour American Eagle Tommy Nike Piercing Pagoda; Tenant Republic; Lane Bryant; Ou
Slide 15: Operating Metrics
THIRD QUARTER 2024 11 CONSECUTIVE QUARTERS OF Operating Metrics POSITIVE RENT SPREADS (Total Portfolio at Pro Rata Share Except Where Noted) 52.0% 48.0% 97.4% Occupancy (1) 44.0% 40.0% 36.0% +14.4% Blended Cash Rent Spreads for Executed Comparable Leases (2)(3)(4) 32.0% 28.0% 24.0% 5.8% Change in Sa
Slide 16: Solid Performance With Sustained Occupancy
THIRD QUARTER 2024 Solid Performance With Sustained Occupancy 97.9% 97.5% 97.5% 98.0% 98.0% 97.5% 97.2% 96.8% 97.1% 97.0% 97.3% 97.4% 95.3% 92.2% 2015 2018 2021 2014 2017 2020 2023 3Q24 3Q24 2016 2019 2022 3Q23 3Q23 Total Portfolio Same Center Total portfolio occupancy represents period-end occupanc
Slide 17: Upcoming Expirations Provide Opportunity
THIRD QUARTER 2024 Upcoming Expirations Provide Opportunity PERCENTAGE OF ANNUAL BASE RENT PERCENTAGE OF TOTAL GLA 2024 6% 2024 5% 2025 20% 2025 20% 2026 18% 2026 19% 2027 15% 2027 15% 2028 14% 2028 15% 2029 8% 2029 8% 2030 5% 2030 5% 2031 2% 2031 2% 2032 4% 2032 4% 2033 3% 2033 3% 2034+ 5% 2034+ 4%
Slide 18: Core Strategies
THIRD QUARTER 2024 Core Strategies 18
Slide 19: Leasing
THIRD 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 a
Slide 20: Operations
THIRD 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 busi
Slide 21: Marketing
THIRD 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 th
Slide 22: Financial Drivers and External Growth
THIRD 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 capa
Slide 23: Strong Balance Sheet
THIRD QUARTER 2024 LIMITED USE OF SECURED FINANCING (1) Strong Balance Sheet 14% $0.2B 86% $1.4B $1.6 Secured financing Unsecured financing BILLION NET DEBT $5.4 29% BILLION TOTAL LIMITED FLOATING RATE EXPOSURE (1) ENTERPRISE VALUE $3.8 4% $0.1B 71% BILLION EQUITY $1.5B 96% CAPITAL STRUCTURE (1) (%
Slide 24: Manageable Debt Maturities
THIRD QUARTER 2024 Manageable Debt Maturities Effective Interest Rate (1) 4.1% $620 in Years to Maturity (2) 4.0 borrowing capacity $403 $400 $358 $352 $46 $36 $1 $— $— 2024 2025 2026 2027 2028 2029 2030 2031 2032 Lines of Credit ($620M in commitments at Adjusted SOFR + 0.85% maturing in 2029; undra
Slide 25: Solid Debt Ratios
THIRD QUARTER 2024 Solid Debt Ratios IN COMPLIANCE WITH ALL DEBT COVENANTS Key Bond Covenants Actual Limit Total consolidated debt to adjusted total assets 37% < 60% Total secured debt to adjusted total assets 2% < 40% Total unencumbered assets to unsecured debt 257% > 150% Consolidated income avail
Slide 26: External Growth Initiatives
THIRD 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 a
Slide 27: Experienced and Engaged Executive Team and Board
THIRD 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 28: ESG at Tanger
THIRD 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 v
Slide 29: Tanger's ESG Approach
THIRD QUARTER 2024 Tanger's 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 ESG Approach our planet. Through our environmental, social, and governance (ESG) practices and program
Slide 30: Earnings & 2024 Guidance
THIRD QUARTER 2024 $ PER SHARE $2.13 $1.96 $2.00 $1.83 $2.09 $1.60 $1.44 $1.00 $0.92 $0.92 $0.77 $0.70 $0.65 $0.88 Earnings & $— 2024 Guidance (1) (2) (2) (3) 2022 2023 2024 Guidance 3Q23 YTD 3Q24 YTD Net Income Core FFO Low High GUIDANCE FOR 2024 Range Range Net income per diluted share $0.88 $0.92
Slide 31: Non-GAAP Supplemental Measures
THIRD QUARTER 2024 Non-GAAP Supplemental Measures 31
Slide 32: Non-GAAP Reconciliations
THIRD 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 Noncon
Slide 33: Non-GAAP Reconciliations
THIRD QUARTER 2024 Below is a reconciliation of net income available to common shareholders to FFO and Core NINE MONTHS ENDED SEPTEMBER 30, FFO available to common shareholders (in thousands, except per share information): 2024 2023 NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 71,417 $ 74,513 Nonco
Slide 34: Non-GAAP Reconciliations
THIRD 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 35: Non-GAAP Reconciliations
THIRD QUARTER 2024 Below is a reconciliation of net income to Portfolio NOI for the consolidated NINE MONTHS ENDED SEPTEMBER 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 $
Slide 36: Non-GAAP Reconciliations
THIRD QUARTER 2024 NINE MONTHS ENDED SEPTEMBER 30, Below is a reconciliation of net income to EBITDAre and Adjusted EBITDAre (in thousands): 2024 2023 NET INCOME $ 75,151 $ 79,037 Adjusted to exclude: Interest expense, net 45,108 28,584 Income tax expense (benefit) (248) (32) Depreciation and amorti
Slide 37: Non-GAAP Definitions
THIRD 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 a
Slide 38: Non-GAAP Definitions: Core FFO and NOI
THIRD 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 presen
Slide 39: Non-GAAP Definitions: EBITDAre
THIRD 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, Taxes
Slide 40: Notes and Additional Information
THIRD QUARTER 2024 Notes and Additional Information 40
Slide 41: Notes
THIRD 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 September 3
Slide 42: Notes (continued)
THIRD QUARTER 2024 Page 30 (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 43: 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