• 'Simon Property Group (SPG) for outlet malls.'
• 'A shopping mall developer for upscale discount centers.'

• Leasing of Retail Space: Tanger provides commercial real estate in its open-air upscale outlet shopping centers to various brand name companies.

Tanger (SKT) sells primarily to other companies, specifically brand name retail companies that lease space in its upscale outlet shopping centers.

The company has a highly diversified tenant base, with over 500 different brand name companies operating more than 2,700 stores across its portfolio. While Tanger does not publicly disclose its top individual tenants by revenue percentage, its major customers typically include well-known global and national retail brands that serve as anchor or significant tenants in outlet malls.

Examples of such major customer companies, which are public and commonly found in Tanger's centers, include:

• Nike (NKE)
• PVH Corp. (PVH) (parent company of brands like Calvin Klein and Tommy Hilfiger)
• Tapestry, Inc. (TPR) (parent company of brands like Coach and Kate Spade)
• Ralph Lauren Corporation (RL)
• Gap Inc. (GPS)

Stephen Yalof, President and Chief Executive Officer

Michael Bilerman, Executive Vice President, Chief Financial Officer and Chief Investment Officer

Jessica Norman, Executive Vice President, General Counsel and Secretary

Leslie Swanson, Executive Vice President, Chief Operating Officer

Justin Stein, Executive Vice President, Leasing

Here are the key risks to Tanger (SKT):

1. Shift to E-commerce and Competition from Discount Retailers: Tanger's business model, which relies on physical outlet shopping centers, faces significant structural challenges from the ongoing growth of e-commerce and intense competition from other discount retail formats, such as pure-play online marketplaces and traditional off-price retailers. This trend can lead to reduced foot traffic, declining sales per square foot at its properties, and difficulty in adapting its existing layouts for alternative uses, unlike more flexible Class A malls.
2. Vulnerability to Economic Downturns and Tenant Health: As an operator of discretionary retail centers, Tanger is highly exposed to fluctuations in consumer spending and the financial stability of its tenants. Economic recessions, inflationary pressures, and a tightening credit environment can lead to reduced discretionary income for consumers, resulting in lower sales for retailers, increased tenant bankruptcies or store closures, and challenges in renewing leases at favorable rates.
3. High Concentration and Limited Adaptability of its Business Model: Tanger's focus as a pure-play outlet operator means it has a high concentration in a specific retail sub-sector and geographical footprint. This lack of diversification limits the company's ability to pivot or adapt quickly to rapidly evolving retail trends and consumer preferences, especially when compared to more diversified retail real estate investment trusts (REITs) that can repurpose space for entertainment, services, or other non-retail uses.

The rapid and widespread acceleration of e-commerce and direct-to-consumer (DTC) sales channels, significantly intensified by the global pandemic during the quarter ended September 30, 2020, presents a clear emerging threat. This shift reduces the necessity for consumers to visit physical retail locations like outlet centers and allows brand name companies to bypass traditional retail spaces, directly impacting Tanger's ability to lease its properties.

Tanger (NYSE: SKT) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Positive Rent Spreads and Increased Base Rents: Tanger has consistently achieved positive rent spreads on comparable space, indicating its ability to command higher rental rates on new and renewed leases. This trend is expected to continue, leading to increased rental revenues. For example, in the second quarter of 2024, the company saw an 8% increase in same-center Net Operating Income (NOI) driven by higher rental revenues from increased base rents. Blended average rental rates were positive for the 12th consecutive quarter as of Q4 2024, at 15.0% on a cash basis for comparable space.
2. Occupancy Growth: The company is focused on enhancing portfolio occupancy. Higher occupancy rates translate directly into more leased space and thus greater rental income. Tanger achieved 96.5% occupancy at the end of Q2 2024, and portfolio occupancy ended 2025 at 98.1% (with same-center occupancy at 98.2%).
3. Strategic Acquisitions and External Growth Initiatives: Tanger has been actively expanding its portfolio through acquisitions of open-air retail shopping centers. The addition of new centers directly contributes to the company's revenue base. Notable acquisitions include Tanger Outlets Nashville, Tanger Outlets Asheville, and Bridge Street Town Centre in 2023, and The Promenade at Chenal in 2024. Management expects continued external growth.
4. Portfolio Enhancement and Diversified Merchandising Mix: Tanger is committed to elevating the shopper experience and proactively curating its tenant mix by leveraging new uses and categories. This strategy aims to attract in-demand retailers and a broader range of shoppers, which can lead to higher tenant sales productivity and, subsequently, higher rental income. The company achieved record annual leasing volumes in 2025, which included strides in strategic merchandising initiatives.
5. Strong Retailer Demand and Sales Productivity: Continued strong demand from retailers for space within Tanger centers, combined with robust tenant sales productivity, underpins the company's ability to drive revenue growth. This indicates a healthy operating environment for their properties, allowing for sustained leasing activity and rental rate increases. Tenant sales productivity was $473 per square foot in 2025, up 7% from the prior year.

Capital Allocation Decisions (Last 3-5 Years)

Share Repurchases

• In May 2025, Tanger's Board of Directors authorized a new share repurchase program of up to $200 million, replacing a previous $100 million authorization.
• The company completed a $20 million share repurchase program in February 2026, partially funded by proceeds from an exchangeable senior notes offering.

Share Issuance

• In January 2026, Tanger Properties Limited Partnership announced a proposed private placement of $200 million in Exchangeable Senior Notes due 2031, with an option for an additional $30 million.
• In February 2026, Tanger filed for an offering of up to 7.4 million common shares.
• Around the time of the Legends Outlets acquisition in September 2025, Tanger settled approximately $70 million of previously issued forward equity.

Outbound Investments

• In September 2025, Tanger acquired Legends Outlets, an open-air shopping center in Kansas City, Kansas, for approximately $130 million. This marked the fourth outlet center of seven total open-air shopping centers to join Tanger's portfolio since 2022.
• In February 2025, Tanger acquired Pinecrest, a mixed-use center in Cleveland, Ohio, for approximately $167 million.
• In December 2024, Tanger acquired The Promenade at Chenal in Little Rock, Arkansas, for approximately $73 million.

Capital Expenditures

• Tanger's projected capital expenditures for 2026 are between $65 million and $75 million.
• The primary focus of these capital expenditures is on re-tenanting efforts, merchandising upgrades, and supporting food, beverage, and entertainment tenants.
• There is an acknowledged risk of incremental capital expenditures if certain retailer lease rejections, such as Saks, occur.