Tanger Factory Outlet Centers Inc. ( SKT) Q3 2010 Earnings Conference Call October 27, 2010 10:00 AM ET Executives Mona Walsh – Assistant VP, Corporate Communications Steven Tanger – President and CEO Frank Marchisello – CFO, EVP and Secretary Analysts Christie McElroy – UBS Quinton Falelli – Citi Craig Schmidt – Bank of America/Merrill Lynch Todd Thomas – Keybanc Capital Markets Michael Mueller – J.P. Morgan Carol Kemple – Hilliard Lyons David Leibowitz – Horizon Asset Management Ben Yang – Keefe Bruyette & Woods Cedric Lachance – Greenstreet Advisors Rich Moore – RBC Capital Markets Nathan Isbee – Stifel Nicolaus Presentation Operator
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» Tanger Factory Outlet Centers Inc. Q2 2009 Earnings Call Transcript
At this time, all participants are in a listen only mode. Following management’s prepared comments, the call will be opened up for your questions. I’ll now turn the call over to Steven Tanger. Please go ahead Steve.Steven Tanger Thank you Mona and good morning everyone. Before we get started today, I would like to acknowledge the passing of our Founder, my father Stanley Tanger. Dad died last Saturday peacefully surrounded by our family including my mother, his wife of over 62 years, his three children and six grandchildren. Stanley Tanger was a dedicated family man and an entrepreneur who will be remembered for his lifetime commitment to philanthropy. He was a visionary, but more than anything, he was my mentor and my friend. His legacy will be carried forward by everyone at Tanger Outlet Centers, of whom he was very proud. As you can imagine, it is with mixed emotions that we conduct this call today. Stanley Tanger never sat still, and always moved forward, so it is in this spirit that we share our thoughts on our performance during the third quarter. Our operating results were strong and above plan with same center NOI increasing by 3.6 % in the third quarter and 2.4 % in the first nine months of 2010. Our tenant comparable sales for the rolling 12 months ended September 30, 2010 increased 6.3 % to $349.00 per square foot. Comparable sales for the third quarter increased 4.9 % compared to the third quarter of 2009. During the quarter, we expanded our senior management team with the appointment of Thomas E. McDonough to the newly created position of Executive Vice President of Operations. Tom brings to Tanger nearly 30 years of REIT management, leasing acquisition and development experience. He has served in senior management positions at several REIT’s. Tom joined the Tanger management team in August and we are very pleased to have him on board.
We also expanded and strengthened our Board of Directors with the addition of Thomas J. Reddin, a 30 year consumer marketing and e-commerce veteran. Appointed a Director in July, Tom has already brought value and perspective to our Board.Each year, millions of shoppers across America look to Tanger Outlet Centers to receive value on all the brand name fashions and accessories they purchase for their family. Kicking off on September 15, Tanger added even more value to our consumer’s visits by giving them a chance to also fight breast cancer in their community. For the 17 th year, the annual Tanger style of Pink Campaign is providing consumers in our 32 outlet centers across the country, the opportunity to purchase Tanger Pink cards for a dollar donation and receive a 25 % discount at participating stores. The money raised is locally donated to nearly 20 different organizations across the country through the Stanley K. Tanger Breast Cancer Fund. Tanger’s 2010 Pink campaign, concluded on October 25, and raised approximately $1.2 million. Since 1994, Tanger Outlet Centers has contributed more than $8.7 million to this important cause, giving back and supporting the communities where we live and work. I will now turn the call over to Frank who will take you through our financial results for the quarter, and then I will follow with a summary of our operating performance and our current expectations for the balance of 2010. Read the rest of this transcript for free on seekingalpha.com