Tanger Factory Outlet Centers Inc. (NYSE:SKT) Q1 2018 Earnings Conference Call - Final Transcript

May 02, 2018 • 10:00 am ET

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Tanger Factory Outlet Centers Inc. (NYSE:SKT) Q1 2018 Earnings Conference Call - Final Transcript

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Presentation
Operator
Cyndi Holt

Good morning. This is Cyndi Holt, Vice President of Investor Relations. And I would like to welcome you to the Tanger Factory Outlet Centers' First Quarter Conference Call. Yesterday, we issued our earnings release, as well as our supplemental information package and our investor presentation. This information is available on our Investor Relations website investors.tangeroutlet.com.

Please note that during this conference call, some of management's comments will be forward-looking statements that are subject to numerous risks and uncertainties and actual results could differ materially from those projected. We direct you to our filings with the Securities and Exchange Commission for a detailed discussion of these risks and uncertainties.

During the call, we will also discuss non-GAAP financial measures as defined by SEC Regulation G, including funds from operations or FFO, adjusted funds from operations or AFFO, same center net operating income and portfolio net operating income. Reconciliations of these non-GAAP measures to the most directly comparable GAAP financial measures are included in our earnings release and in our supplemental information.

This call is being recorded for rebroadcast for a period of time in the future. As such, it is important to note that management's comments include time-sensitive information that may only be accurate as of today's date, May 2nd, 2018. At this time, all participants are in listen-only mode. Following management's prepared remarks, the call will be opened for your questions.

[Operator Instructions] On the call today we will have Steven Tanger, Chief Executive Officer; Jim Williams, Senior Vice President and Chief Financial Officer; and Tom McDonough, President and Chief Operating Officer.

I will now turn the call over to Steven Tanger. Please go ahead, Steve.

Executive
Steven Tanger

Thank you, Cyndi. Let me start with a significant milestone that we will celebrate later this month. 25 years of our stock trading on your New York Stock Exchange. Since the time of our IPO, we have grown from 17 centers with 1.5 million square feet to 44 properties with 15.3 million square feet. Our enterprise value has grown from about $200 million to about $4 billion at the end of the quarter, a compounded annual growth rate of 13%.

Throughout this time, we have successfully navigated a number of different economic and retail cycles, and we have adapted our business accordingly, keeping our centers relevant and highly occupied. We pride ourselves on keeping the tenant mix of our centers dynamic and giving Tanger shoppers the brands and designers they want.

We have stayed true to our mission of delivering the best brands, the best prices and the best experience. With this long-term view, we have proven we can successfully adapt to evolving consumer preferences, and aligning those with tenant needs. We have consistently focused on redevelopment and renovation of our properties.

We have invested approximately $340 million over the last 10 years, making Tanger centers more innovative and exciting. We have also invested in the consumer experience across our entire portfolio. In recent years, we have added enhanced shopping amenities, including gathering in play