Tanger Reports Third Quarter Results and Raises Full-Year 2023 Guidance

• Net income available to common shareholders was $0.26 per share, or $27.2 million, compared to $0.22 per share, or $23.0 million, for the prior year period.
• Funds From Operations ("FFO") available to common shareholders was $0.50 per share, or $55.8 million, compared to $0.47 per share, or $51.7 million, for the prior year period.
• Core Funds From Operations ("Core FFO") available to common shareholders was $0.50 per share, or $55.8 million, compared to $0.47 per share, or $51.7 million, for the prior year period.

Year-to-Date Results

• Net income available to common shareholders was $0.70 per share, or $74.5 million, compared to $0.60 per share, or $63.0 million, for the prior year period.
• FFO available to common shareholders was $1.45 per share, or $160.2 million, compared to $1.37 per share, or $149.9 million, for the prior year period.
• Core FFO available to common shareholders was $1.44 per share, or $159.4 million, compared to $1.37 per share, or $149.9 million, for the prior year period. Core FFO for the first nine months of 2023 excluded the reversal of previously expensed compensation related to a voluntary executive departure of $0.01 per share, or $0.8 million. Core FFO for the first nine months of 2022 excluded $0.02 per share, or $2.4 million, related to certain executive severance costs, offset by a gain on sale of the corporate aircraft of $0.02 per share, or $2.4 million. The Company does not consider these items indicative of its ongoing operating performance.

FFO and Core FFO are widely accepted supplemental non-GAAP financial measures used in the real estate industry to measure and compare the operating performance of real estate companies. Complete reconciliations containing adjustments from GAAP net income to FFO and Core FFO, if applicable, are included in this release. Per share amounts for net income, FFO and Core FFO are on a diluted basis.

Operating Metrics

Key portfolio results for the total portfolio, including the Company's pro rata share of unconsolidated joint ventures, were as follows:

• Occupancy was 98.0% on September 30, 2023, compared to 97.2% on June 30, 2023 and 96.5% on September 30, 2022
• Same center net operating income ("Same Center NOI"), which is presented on a cash basis, increased 7.6% to $87.9 million for the third quarter of 2023 from $81.7 million for the third quarter of 2022 driven by higher rental revenues from increased base rent and expense recoveries, as well as out-of-period rent collections. Same Center NOI for the year-to-date period increased 6.5% to $254.5 million for the first nine months of 2023 from $239.0 million for the first nine months of 2022, benefiting from occupancy gains, rent growth, operating expense efficiencies, expense timing and the mild winter experienced in the first quarter of 2023
• Average tenant sales productivity of $437 per square foot for the twelve months ended September 30, 2023 decreased 1.4% compared to $443 per square foot for the twelve months ended June 30, 2023 and decreased 2.0% from $446 per square foot for the twelve months ended September 30, 2022
• On a same center basis, average tenant sales per square foot of $437 per square foot for the twelve months ended September 30, 2023 decreased 1.4% compared to $443 per square foot for the twelve months ended June 30, 2023 and decreased 2.2% from $447 per square foot for the twelve months ended September 30, 2022
• The occupancy cost ratio ("OCR"), representing annualized occupancy costs as a percentage of tenant sales, was 9.1% for the twelve months ended September 30, 2023 compared to 9.0% for the twelve months ended June 30, 2023 and 8.5% for the twelve months ended September 30, 2022
• Lease termination fees (which are excluded from Same Center NOI) for the total portfolio totaled $409,000 for the third quarter of 2023 and $484,000 for the first nine months of 2023, compared to $228,000 for the third quarter of 2022 and $2.9 million for the first nine months of 2022

Same Center NOI is a supplemental non-GAAP financial measure of operating performance. A complete definition of Same Center NOI and a reconciliation to the nearest comparable GAAP measure is included in this release.

Transaction Activity

Tanger Outlets Nashville, the Company's newest development, opened on October 27, 2023 and is 96.5% leased. The center is approximately 291,000 square feet and is estimated to cost between $144 million and $146 million with a projected stabilized yield range of 7.5% to 8.0%. Through September 30, 2023, Tanger had incurred costs of $119.0 million associated with this development.

The open-air center offers shopping and dining across seven retail buildings and a unique, placemaking community space. Tanger Nashville reflects the Company's commitment to diversify and enhance the shopping experience for its customers with nearly one quarter of the center's dynamic assortment new to Tanger's portfolio or first to the outlet channel.

Leasing Activity

For the total portfolio, including the Company's pro rata share of unconsolidated joint ventures, as of September 30, 2023, Tanger has renewals executed or in process for 88.0% of the space scheduled to expire during 2023 compared to 75.6% of expiring 2022 space as of September 30, 2022.

The following key leasing metrics are presented for the total domestic portfolio, including the Company's pro rata share of domestic unconsolidated joint ventures.

• Total renewed or re-tenanted leases (including leases for both comparable and non-comparable space) executed during the twelve months ended September 30, 2023 included 528 leases, totaling nearly 2.2 million square feet
• Blended average rental rates were positive for the seventh consecutive quarter at 14.5% on a cash basis for leases executed for comparable space during the twelve months ended September 30, 2023. These blended rent spreads, which were up 880 basis points year over year, are comprised of re-tenanted rent spreads of 30.6% and renewal rent spreads of 13.4%

Dividend

In October 2023, Company's Board of Directors approved a 6.1% increase in the dividend on its common shares from $0.98 to $1.04 per share on an annualized basis. Simultaneously, the Board of Directors declared a quarterly cash dividend of $0.26 per share, payable on November 15, 2023 to holders of record on October 31, 2023.

Balance Sheet and Liquidity

The following balance sheet and liquidity metrics are presented for the total portfolio, including the Company's pro rata share of unconsolidated joint ventures. As of September 30, 2023:

• Net debt to Adjusted EBITDAre (calculated as net debt divided by Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate ("Adjusted EBITDAre")) remained stable at 5.2x for the twelve months ended September 30, 2023 from 5.1x for the year ended December 31, 2022, reflecting incremental Nashville development spending
• Interest coverage ratio (calculated as Adjusted EBITDAre divided by interest expense) was 4.6x for the first nine months of 2023 and 4.6x for the twelve months ended September 30, 2023
• Cash and cash equivalents and short-term investments totaled $206.8 million with full availability on the Company's $520 million unsecured lines of credit
• Total outstanding debt aggregated $1.6 billion with $91.2 million (principal) of floating rate debt, representing approximately 6% of total debt outstanding and 2% of total enterprise value
• Weighted average interest rate was 3.4% and weighted average term to maturity of outstanding debt, including extension options, was approximately 5.0 years
• Approximately 88% of the total portfolio's square footage was unencumbered by mortgages with secured debt of $226.7 million (principal), representing 14% of total debt outstanding
• Funds Available for Distribution ("FAD") payout ratio was 53% for the first nine months of 2023

As of September 30, 2023, $300 million of the outstanding balance of the Company's $325 million unsecured term loan, which matures in January 2027 plus a one-year extension, is fixed with interest rate swaps at a weighted average Adjusted SOFR rate of 0.5%. These swaps expire on February 1, 2024, and the interest expense impact of these expirations and new swaps will begin at that time. As of November 6, 2023, the Company has entered into $250 million of forward-starting swaps that commence February 1, 2024 and have varying maturities through January 2027, as outlined in the table below. Collectively, these swaps fix the Adjusted SOFR base rate at a weighted average of 4.0%.

Adjusted EBITDAre, Net debt and FAD are supplemental non-GAAP financial measures of operating performance. Definitions of Adjusted EBITDAre, Net debt and FAD and reconciliations to the nearest comparable GAAP measures are included in this release.

Guidance for 2023

Based on the Company's better-than-anticipated performance in the third quarter and its outlook for the remainder of 2023, management is increasing its full-year 2023 guidance with its current expectations for net income, FFO and Core FFO per share for 2023 as follows:

Tanger's estimates reflect the following key assumptions (dollars in millions):
For the year ending December 31, 2023:	Revised			Previous
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