Q4 2021 Tanger Factory Outlet Centers Inc Earnings Call
Good morning. This is Cyndi Holt senior Vice President of capital markets and I would like to welcome you to the Tanger factory outlet centers fourth quarter and year end 2021 conference call yesterday evening, we issued our earnings release as well as our supplemental information package and investor presentation.
This information is available on our Investor Relations website investors that tanger outlets Dot 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 <unk>.
Core SSO.
Same center net operating income adjusted EBITDA and net debt 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 todays date February 18th 2022 at this time all participants are in listen only mode.
Following managements prepared comments the call will be opened for your questions. We request that everyone ask only one question and one follow up to allow as many of you as possible to ask questions. If time permits were happy for you to re queue for additional questions on the call today will be Steven Tanger, Our executive Chair Stephen Yalof.
<unk>, Chief Executive Officer, and Jim Williams, Executive Vice President and Chief Financial Officer.
I will now turn the call over to Steven Tanger. Please go ahead Steve.
Good morning.
Thank you for joining us for our fourth quarter and year 2021 earnings call.
We ended 2021.
It's really a stronger position than we entered it with improvements in traffic and tenant sales and occupancy.
Our open air shopping centers.
We are also entering 2022.
A well positioned balance sheet.
We proactively strengthen in 2021 in anticipation of higher interest rates and the push.
Our long term strategy.
Increase cash flow.
The value of our real estate.
I want to thank our entire team for their hard work and focus on driving the success I will now turn the call over to Steve Yalof to provide additional details.
Thank you Steve and.
Fourth quarter punctuated a year of continued improvements as consumers demonstrated their desire to shop at Tanger centers and retailers recognize the benefits of being in our open air shopping centers.
In the fourth quarter, we delivered positive results across each of our key metrics.
<unk> traffic during the quarter exceeded 2019 levels was up 12% from the fourth quarter of 2020.
Occupancy recovered to 95, 3%, representing a sequential increase of 90 basis points and a 310 basis point year over year increase.
Tenant sales reached an all time high for our portfolio at $468 per square foot a.
A 17, 6% increase over 2019 and generated significant percentage rental growth.
And cash blended rent spreads improved 220 basis points sequentially, and 650 basis points year over year as renewal rent spreads turned positive.
Taken together all of these metrics helped to generate year over year same center NOI growth of five 6% for the fourth quarter and 16% for the full year <unk>.
Additionally throughout the year, we took a number of proactive steps to further enhance our balance sheet and liquidity position.
To extend our maturities and reduce our leverage and position us to execute on our capital plan and growth opportunity.
Since the beginning of 2020, we recaptured over 1 million square feet of space due to Covid accelerated bankruptcies and brand wide restructurings.
During 2021, we executed 337 leases totaling over one 4 million square feet.
We're covering 310 basis points of occupancy.
Filling space with more productive tenants.
These include high quality footwear and apparel retailers.
Elevated fashion brands.
And diversified uses such as F&B specialty grocery home and experiential concepts.
We continue to benefit from our temporary leasing program led by our field organization temporary tenants diversify our offering and add new concepts and uses that ultimately drive revenue.
Additionally, our temporary tenant program helps drive new customer to our shopping center.
Increases visit frequency and extend stays and ultimately yields higher sales per customer visit.
Our goal when appropriate as to convert select tenants from temporary to permanent.
Percentage rentals during the fourth quarter again outpaced our expectation.
Led by ongoing tenant sales strength, our strategy of exchanging value for value, while we renewed and restructured deals during the height of Covid proved fruitful.
Deals, where we reduced base rents for a larger percentage rent shares drove ratably larger percentage rent revenues.
In many cases this strategy produced total rent that exceeded the prior contractual fixed rents growing our core <unk> as these deals come up for renewal in 2022 and 2023, we are focused on converting most of the variable upside into fixed rents to provide longer term certainty.
These restructures along with the proactive deferrals, we employed during the pandemic.
Proven to be effective and we are in a favorable position as we emerge from the challenges of the pandemic.
Sales and traffic momentum supporting our ability to increase rents.
Cash blended rent spreads for comparable leases executed in 2021 improves significantly.
Our renewal spreads turned positive and important milestone.
In place rents at year end represented an occupancy cost ratio for 2021 of eight 1%. This is meaningfully lower than other retail distribution channels and provides an opportunity for rental rate upside.
Currently we have renewals executed or in process for 39% of the space expiring in 2022 compared to approximately 45% of the 2021 explorations at the same time last year.
Our fourth quarter results have given us the ability to better price our real estate.
We are now accelerating our renewal activity.
We're also encouraged by our discussions with prospective new tenants.
With current tenants looking to expand and are pleased that we are seeing an increase in number of open to buy Purdue outlet stores.
Non store revenues remain a strong contributor of our earnings growth.
As evidenced by other revenues line item, which increased over 40% during the fourth quarter compared to the same period of 2020.
And over 50% compared to the fourth quarter of 2019.
Our high traffic open air shopping centers provide an opportunity for our retailers and national brands to connect with our shoppers outside of the four walls of their store through marketing partnerships on centers sponsorship and digital and static media.
In 2021, we hosted a major activations for such brands as Heineken.
Tesla Unilever Geico and Hilton just to name a few.
As this strategy has proven to drive measurable results for retailers and sponsors we will expand this business and grow the revenue generating platform overtime.
We continue to invest in our people and systems in order to scale our business.
Last year, we brought on Justin Stein as EVP of leasing and we promoted our EVP of operations Leslie Swanson, Chief operating officer.
Additionally, we added a chief commercial officer, Andrew wind growth to our management team. This is a new role for Tanger and it demonstrates our commitment to commercializing our business through digital transformation.
Modernizing our loyalty program.
And creating an experience through all touch points and engage our customers.
Andrew has extensive experience in elevating marketing programs loyalty strategies and customer centricity at companies, including Macy's and Delta Airlines.
We are investing in technology and business systems to enhance our core business capabilities.
Our investment in an implementation of a new ERP system will support our ability to effectively scale further.
We remain laser focused on sustaining the internal growth that generated strong cash flow in 2021. Additionally.
Additionally, we are pursuing a number of value enhancing investments including solar.
Electric vehicle charging stations and other projects to reduce energy and water usage, all underscoring our commitment to sustainability.
Our peripheral land team is aggressively pursuing opportunities to monetize our out parcel portfolio.
Unlock new opportunities to enhance our offering.
Generate new revenue streams and create long term portfolio value.
Tenant interest in our Nashville project has been strong and we are on track to break ground in the first half of this year with Grand opening in fall of 2023.
I'm extremely proud of the entire Tanger team.
The results that they achieved for 2021.
I would also like to thank the hundreds of retailers and merchants so vital to the success of Tanger for their great results in our platform.
The value proposition of our open air centers is being validated by shoppers and tenants and the communities we serve.
I would now like to turn the call over to Jim Williams take you through our financial results balance sheet and outlook for 2022.
Yeah.
Thank you Steve I.
I am pleased to report that our results for the full year 2021 exceeded our expectations and we delivered full year core <unk> of.
Of $1 76 per share above the high end of our guidance range.
Our outperformance was due to better than expected contributions from percentage of rentals occupancy gains and other revenues.
These factors also drove a year over year increase in same center NOI for the total portfolio of five 6% for the quarter to $82 $8 million.
Our balance sheet is well positioned due to the proactive capital market steps, we took during the past year.
We amended our lines of credit extended our maturities and executed a successful ATM equity issuance strategy to significantly reduce our leverage and enhance our liquidity.
We have no significant debt maturities until April 2024, and as of year end, our net debt to adjusted EBITDA.
Improved to five five times for the trailing 12 months compared to seven two times for the comparable 12 month period as of year end, 93% of our outstanding debt was fixed.
We have always prioritized, maintaining a strong financial position and a disciplined and prudent approach to capital allocation for.
For the full year, our dividend was well covered with a payout ratio of 53%.
Our board will continue to evaluate dividend distributions alongside earnings increases in taxable income distribution requirements.
Our priority uses of capital are investing in our portfolio to grow NOI and evaluating selective external growth opportunities.
I would like to highlight a few changes we have made to our disclosures with our yearend reporting to improve comparability with other open air retail center rates would have added a pro rata share of JV to certain metrics to provide a more comprehensive view of our portfolio.
We are now providing leasing spreads on and executed basis, rather than a commence basis to provide a more forward looking metric, but during this transition every quarter. We also provided these on a commenced basis, we are introducing our guidance for 2022.
We expect core F F O to be in the range of $1 68 to $1 76 per share and are pleased to reintroduce guidance for same center NOI growth at a range of one 5% to three 5%.
Included in our guidance are the investments that Steve discussed to support our growth.
Which are primarily reflected in our G&A expectation of between $69 million and $72 million.
This includes investments in building the team and technology critical to executing our core strategies of reshaping operations accelerating leasing and growing our commercial strategy. Additionally, as part of our commitment to our employees.
We reevaluated our benefits packages and have improved our employee health insurance program, which will have an approximate $1 million impact on G&A.
Finally, due to the capital markets activity in 2021, our guidance assumes 2022 weighted average diluted common shares of approximately $110 5 million or <unk> per share compared to a $106 8 million in 2021.
For additional details on our key assumptions. Please see our release issued last night I would now like to open it up for questions. Operator can we take our first question.
Thank you and I'll be conducting a question and answer session if you'd like to be placed in the question queue. Please press star one on your telephone keypad, a confirmation tone will indicate your line is that the question queue.
You May press Star two if you like to move your question from the queue.
Once again, we ask you. Please ask one question and one follow up their return to the queue. Our first question today is coming from Katie Mcconnell from Citi. Your line is now live.
Thanks. Good morning, everyone. I was wondering if you could walk us curious about your expectations for noncore line items embedded in guidance this year that could be impactful.
Including straight line rent five lease term fee income and bad debt expense for next year.
Hi, Kevin it's Jim good morning.
We've given you in our guidance range. What we think are the major components that will be driving the results and that's the same store NOI increases of one and a half to three 5% in the G&A.
I do want to point out just to make sure everyone understands that.
There will be another there will be up a little bit of a dilutive effect.
Sure. So the equity offering we did last year of the shares we issue will have a full will be outstanding for the full year. This year, where they were only outstanding for a partial year last year. So that's going to make about a penny to penny.
The impact this year as far as those other items, we're not going to really guide to those there hasnt. If there was something significant we would point those out, but theres really nothing really to update comparative year over year and those items.
Okay. That's helpful.
And then what's your outlook for free cash flow generation. This year, and maybe you could walk us through how youre thinking about the major stuff.
Capital for this year, including a higher capex expectation.
We plan to spend on some asphalt project.
As far as our as far as our Capex spend.
One of the components.
We gave you and it got us about $55 million.
That's sort of access recurring Pat peacefully lease up our properties and to maintain and refresh the properties.
That amount is a little bit elevated from a typical year I think if you look over the last three years will probably in the range of $35 million to $40 million, but.
Thanks, just to point out we do have a little bit bigger bucket of renewals coming up.
We last year would have a little we had.
Lot smaller amounts that we spend on 10 allowances that reflected our strategy does not enter into long term firm that leases when we're at the bottom of the market, but we certainly see those trends improving now and some of those shorter term leases.
We will be rolling into 2020.
<unk>.
And.
Given the traffic has been the.
But given the improvement in the traffic and sales, we're certainly feeling a little bit better about our business and be able to do.
Get a lot of those will be able to start to do some more permanently things. So we'll see some of that going up and also we have four five projects in our portfolio that we'll be doing some.
Xtra.
Renovation has really improved overall.
Appeal and experience for our customers.
Yeah.
And then just on the free cash flow expectation.
Yeah.
What's the free cash flow.
Does that matter.
Can you give us any sense for what you're expecting this year.
Well, let me just let me put it in terms of this way I think if you will.
Yes.
At our what we're expecting our current payout ratio to be after dividends.
It'll be pretty healthy I think we'll still be in the fifties, what's really puts us in a good spot as we move into 2022.
Okay. Thanks, so much.
Thank you. Our next question is coming from Sameer Kumar from Evercore ISI. Your line is now live.
Hey, good morning, everyone, Hey, Steve can you provide a bit more information on the guidance, what youre, assuming for tenant sales, which shows that clearly rebounded at this time.
Just to kind of get to the low end or the high end of guidance.
The low end of our guidance assumes.
Little too price reduction in tenant sales and the high end of our guidance takes into consideration improvement in tenant sales personally we are optimistic about tenant sales.
We feel pretty good about the momentum that we have coming out of the fourth quarter going into and going into this year and.
<unk>.
Inflation, we've just found in past years of inflation value values are our channel and a discount channel.
And in terms of just.
Looking at guidance again, one of the drivers for growth has been the other revenue line.
Which is the paid media and marketing you talked about it sort of I mean at this point when you look at that line, it's about 30% over what we saw at 19.
How much more is there you can do on that line as we think about.
Your outlook range for 'twenty, two that you've provided.
Well, we really just started that business about a year and a half ago and it continues to grow because it's coming off a extremely low base. So we think that becomes an increasingly more important part of our business in outer years.
It's something that we're ultimately going to invest and part of that line item is.
Digital media and as we invest in digital media boards, we certainly get a return on the investment as we go after marketing opportunities with either retailers within our shopping center portfolio or outside media like the ones that we named in our.
Script earlier, guys like Unilever, and Heineken and folks that are doing a <unk>.
The advantage of the over 125 to 150 million people that visit our shopping centers every year. So they want to get an opportunity to get their products in front of that customer base.
Okay. Thanks for that.
Thank you. Our next question is coming from Todd Thomas from Keybanc Capital markets. Your line is now live.
Hi, Thanks, Good morning, Steve.
Steve you talked about the deals that you got during the pandemic, where you reduced breakpoint.
Breakpoints in traded fixed rent for higher variable rent and and that seems to be paying off what.
<unk> of the tenant base is not paying full freight today are fixed rent and what's the uplift that you're expecting on average as you convert those tenants back to fixed rent, which I think you said would generally take place in 'twenty, two and 'twenty three.
Well good morning, Todd and you saw in our supplement that we've got a big chunk of renewals coming back this year and we see that.
<unk> population is opportunity for us to push rents for sure.
Our leasing team gets in front of our tenants. The first thing we talk about it sales and traffic and those two metrics have been improving.
Over the last few quarters and continue to improve and obviously that gives us a great opportunity to reprice, our real estate and push our rats. So that's our strategy. That's what we're looking forward to doing with regard to some of the temp leasing or the short term leasing that we've done over the past year or so we see that too was opportunity to replace some of the.
Local temp leasing that we've done with more longer term permanent leasing.
At market rents.
And.
Well pay base rents with Triple net we also put money in our budget for tenant allowance because we're anticipating a big improvement of.
Longer term commercial permanent brands.
Okay. If if you carved out those tenants though.
Were you struck deals during the pandemic.
If you carve them out from the it within the renewal bucket.
What does that look like relative to the.
Balance of the renewal activity that that Youre seeing.
It would probably be more of a normalized renewal year.
Okay.
And the uplift in rents the spreads that you're seeing from from those tenants well again I think we're going to go after.
We consider to be market rents with every renewal that comes in front of us.
And we think our real estate is worth it.
We reported an eight 1% occupancy cost, which we believe is the lowest in any retail channel. So there is great value opportunity and upside for us to push those rents I don't think we get tremendous amount of pricing resistance from the retailers because.
We're still that that one value channels.
Retailer pricing point of view, but also from sales volume point of view I think we're probably one of the most profitable for the retailers as well.
Okay, and if I could just follow up on <unk> question a bit.
Related to the G&A increase in the investments in technology and the commercial businesses that you've described the marketing and sponsorship.
Big of a business could this be for Tanger and Jim what's in the guidance for that.
On a segment and 22.
Okay.
Well, Tim as far as.
We.
We've given you we've given you the parameters I think we're certainly excited about the team that we've built and we've put in place we're really going after.
Best in class tenant.
Tenants I mean best in class employees are really built this team and were really seeing that.
Take hold and a lot of different metrics and as far as driving other income in us.
In building the team to make improvements in our specialty leasing a temporary tenant programs at least all throughout the organization.
Those things.
We still there are some opportunities to come come later.
As I was.
Post the kind of season, but what.
It was really all of that stuff is really kind of baked into our same center I got it.
Thanks, Dan I'll, just add one thing just as we look at.
The G&A number as it relates to building these businesses.
We're setting up an infrastructure in order to help us monetize.
Monetize these businesses in a way that we've never had before again I mentioned when Samir asked the question that yes.
Marketing partnership business in this paid media business is kind of a brand new business for us, but because we've got such great traction and it continues to build.
Now going to put systems in place so that we can do a better job of managing it managing our inventory and getting out in front of the tenant a lot faster. We think the faster we can execute to getting in front of tenants getting deals done we can generate even more revenue and that's our plan. So we are investing today to make sure that we're setting up the systems in order to ultimately execute.
To a much bigger bucket on a going forward basis.
Yeah.
Okay alright, thank you.
Thank you. Our next question is coming from Forest transaction from Compass point. Your line is now live.
Good morning, guys. Thanks for taking my question.
Just wanted to just touch on some of these issues that you've sort of.
Danced around.
Pete.
Can you give us a sense of I know that you said, you've got 18% of your rents coming due in 'twenty two.
Typical would be more like 10% ish. So is 8% would be those percentage rent deals can you maybe give us some indication of what the average rent is of the expiring leases and 22 relative to obviously I think you've been signing new rents at around 30% 30 Bucks.
Maybe give people a little bit of comfort in terms of where the spreads might be going.
I don't know that we are guiding to spreads floris, but I will certainly say were optimistic.
First of all renewals spreads turn positive.
That's definitely a step in the right direction, and we feel pretty optimistic that we're going to push positive spreads going into this year.
That's the plan.
We've just brought in.
A new EVP of leasing who is now driving the team and the way it's ever been driven before.
We're really commercializing our leasing efforts were looking at our retail performance from a sales per square foot number every single day and repricing our real estate accordingly.
Look at that 8% of our occupancy cost.
All we see is opportunity we see this 18% that's coming back this year and we see that as opportunity. So we're going to continue to take some of that short term local leasing that was so vital to our success over the past year filling vacancy and cash flowing but our plan is to take that short term leasing replace it with perm.
Leasing and price our real estate at the value that it's worth today and right now with an all time high of $468 a square foot across the portfolio. We think are real estate. Similarly carries an all time high price per square foot and our.
Our goal is to go out and execute to that.
And Floris. This is Jim if I can just add a little bit to that as well I think the really.
Key difference coming in in the 2022, if you look at our tenant health is in a much better spot than we've seen in the past few years.
We don't have we don't we don't.
Our watch list is a short is it's been there's not that many tenants on that watch list anymore. We don't have that expectation of store closure. So we don't have necessarily play the occupancy gains that we've had to play in the past and that gives us with was not was not without issue.
Pruning can it helps improve the trends in traffic and sales gives us more optimism about what we can do with rent spreads in 2022.
Thanks, gentlemen, if I can add one more question I guess.
Maybe if you can talk about your leased versus occupied spread and what percentage of your occupied is temporary.
There's about a 30 basis points spread between leased and occupied right now.
For us.
And the temporary tenants are low low double digits.
A couple of things one is just reflects the strategy that we've used.
One of the ramp up that program to drive revenues and improved experiences. We also have a fourth quarter you have.
Although more of a ramp up due to some seasonal tenants typically open in fourth quarter for the holiday season, and then you'll see those close in the first quarter of 2022.
Thank you, Jim and then by low double digits, you're talking about.
Below 15%.
Slide 12 is okay.
Thank you that's it.
Thanks Lars.
Thank you. Your next question is coming from Caitlin Burrows from Goldman Sachs. Your line is not a lot.
Hi, Good morning, maybe just a quick follow up on that tenant health and watch list topic, Jim I know in recent years, you had like a buffer in guidance. So that if there were some unknown closures that guidance can absorb that and then if there wasn't there was upside. So could you just tell us whether this year's guidance assumes something like that.
If there is possible unexpected closures it can absorb it.
Given the health of the tenants.
So okay.
Do you think that in our range, we can absorb some of that but we really don't have much of that built in.
From just from what we're seeing and what we're hearing with those improving trends in with US. We're in a spot that is much much improved from what we've seen in the past.
Okay, Yeah, no that makes sense and then just maybe on the external side I think in the past quarter. A key you guys had talked about possibly being attractive acquisition opportunities and I know you've done a lot of work over the past year or so.
On the balance sheet side, so could you give an update on what youre seeing on the trend of possible acquisitions that could occur in 'twenty two.
Unfortunately, we don't want to share anything until it's a deal so.
But there's definitely some some interesting things out in the marketplace because the Tanger name is synonymous with outlet we have amazing brand recognition not only in this country, but around the world you can imagine that we see a lot of opportunity to brand outlet centers and bring our.
Tanger club, our loyalty program and all of the suite of services that come with being a part of a tango shopping center to other assets.
Okay. Thanks.
Thank you. Our next question is coming from Craig Schmidt from Bank of America. Your line is now live.
Great. Thank you.
I wanted to talk a little bit about gas prices I know in the past you've said that the.
Increased gas prices hasnt diminished graphic, but we're hearing that you know come to summer months gas prices could hit $5 and if the Russia and Ukraine tension escalates it could even hit as high as seven.
What are you thinking about.
These increases are enough.
Could have impact or are you speaking traffic will be as expected.
Greg you Gotta get an electric car.
And Thats also a big part of the investment that we're making right now is in E charging stations and by the end of the year, we will have the charging stations in every one of our assets.
But as far as gas prices are concerned the outlet center of today is much different than the outlet center of 20 years ago 25 years ago, I don't want to date myself in the business, but we'll see.
Finding that particularly our markets these drive to resort markets.
They are big second home markets too and a lot of people are staying in the second home market, whether they've got flexible work, we're seeing a lot more traffic during the week to our shopping centers and Thats supporting the fact that people are living a little bit closer to our shopping centers.
The wholesale sensitivity that kept shopping centers, so far away years ago has really diminished in our business and we're able to put our assets much closer to where the people are and more importantly, a lot of the places where we put shopping centers 10, 15 20 years ago.
<unk>.
Have become sort of the go to residential destinations and theyre growing from a residential point of view.
In very big ways.
So that is a great example, where outside of downtown Savannah, which is the big tourist destination, but were in pooler employer is one of the fastest growing geographies in the market. If you look at Westgate, We've had unbelievable results coming through our Westgate shopping center in Arizona, a lot of that has to do with the increase in permanent population. So as we're looking for.
New opportunities, but we're also investing in some of our existing we're leaning very heavily into those where the permanent population is a very important part to the future growth of those shopping centers.
Okay. Thank you.
And then just one.
What is the pre leasing that's done at Nashville.
Well, we said we won't break ground until we have 60% committed and we are planning on breaking ground early in the second quarter. So we're.
I guess you can do that.
We won't we won't break ground without that commitment.
Okay. So you are either very close we're already.
Yeah.
Yes.
Okay. Thank you.
Thank you next question today is coming from Mike Mueller from Jpmorgan. Your line is now live.
Yes, Hi, just following up on Nashville can you give us some rough stats of parameters for the size through the economics of the project.
The tenant mix.
It looks like the average Tanger center today.
Yes.
The center will be about 300000 square feet.
Which is slightly smaller than a typical Tanger center.
With regard to the tenant mix, we know that we're in an extremely competitive market. So we're not really releasing the names of tenants, but that will be forthcoming.
The important part of the geography of that shopping center in the South side of the market. We're also part of a mega pad that is part of a $1 billion investment.
Only in infrastructure, but in residential housing hotel.
It is on the same site as the practice facility for the professional soccer team.
In Nashville, it's directly across the street from the professional practice facility for the hockey team. So we think not only what we benefit from the permanent population to Craig's point earlier, but also as folks come in for.
Soccer tournaments and hockey tournaments, there's a huge hospital that also sits on that say Mega pad. We just think being part of a mixed use developments a little bit different than how we've.
Pursue real estate in the past this has a built in client base for our retailers, but also its proximity to Nashville will give us a great draw for the tourists that visit.
And thats booming market.
Got it and any any rough color on anticipated economics returns.
Yes, it will be a typical returns for us we always look going in.
7% to seven 5%.
Third year stabilized.
There may be some upside in that.
As that market gets increasingly.
More competitive for retail space, we can push rents.
Got it okay. Thank you.
Thank you. Our next question is a follow up from Caitlin Burrows from Goldman Sachs. Your line is now live.
Oh, Hi, just a quick one I don't think it was probably not but just wondering.
On the idea of the temp tenants totally get the strategy there, but wondering if you could just clarify what portion of the portfolio made up in the fourth quarter.
So we said at the end of the third quarter that were just over 10% I think it got a little bit higher in the fourth quarter, but a lot of that was just seasonal temp tenants.
That's pretty typical.
Holiday pop up to.
Of that nature.
Maybe like 11 or 12.
I don't think it was that.
Okay.
Yes.
Thank you we reached end of our question and answer session I would like to turn the floor back over to Mr. Tanger for any further or closing comments.
Thank you everybody for your interest in our company.
Steve Jim Cindy and I.
And our entire team would be happy to answer additional questions. After this call.
We look forward to seeing some of you in person hopefully at the upcoming Citi Conference in a couple of weeks, we will and have a great weekend goodbye.
Yeah.
Thank you that does conclude today's teleconference and webcast you may disconnect. Your lines at this time and have a wonderful day, we thank you for your participation today.