Dive Brief:

• Real estate investment trust (REIT) Tanger Factory Outlet Centers provided ongoing environmental, social and governance (ESG) plans for the business during its second quarter earnings call Monday, citing goals to digitize environmental data and further consolidate an ESG strategy. It did not provide any update regarding its search for a permanent CFO.
• But in an emailed statement sent to CFO Dive Tanger CEO and President Stephen Yalof stated the search was ongoing. “Our Q2 results reflect our strong operating fundamentals, which resulted in strong rent spreads, growing occupancy, and lengthening lease terms,” Yalof said, “We’re currently working with a global search firm to fill the permanent CFO position.”
• In a July 1 Securities And Exchange Commission (SEC) filing, Tanger appointed its Chief Accounting Officer Thomas Guerrieri Jr to serve as its top financial officer in the interim beginning that date. At the time, the company said he would continue to serve as CAO, per the filing, while the company continues the search for a permanent CFO.

Dive Insight:

Tanger recently ousted its former CFO James Williams, informing him he would no longer serve as its CFO May 31, according to a June 6 filing with the SEC. Williams, a 28-year veteran of the company, began his tenure as CFO in 2016 and also served as the company’s treasurer. He departed the position at the top of July.

Doug McDonald, SVP, finance and capital markets, discussed the REIT’s quarterly results and upcoming guidance on Tuesday’s earnings call. McDonald was cited as a key executive inside the businesses’ financial team alongside Guerrieri following the June announcement of Williams’ departure, according to statements made by Yalof at the time. Guerrieri did not speak on the call.

The REIT reported solid results for the quarter, including $105.84 million in revenue representing a 4.5% increase year-over-year (YoY). It grew occupancy to 94.9% by June 30 from 94.3% in March, while same center net operating income (NOI) rose 5.1% to $79.8 million, according to earnings results. It also broke ground on a new center Nashville, Tenn and detailed plans to rebrand an existing center in Palm Beach, Florida.

Tanger also released its 2021 environmental, social and governance (ESG) report Monday prior to its earnings call. The company outlined its 2022 goals in the report, including achieving LED certification at its centers, digitizing its environmental data, and developing an ESG strategy and roadmap as well as pushing forward on diversity, equity and inclusion initiatives. The company began reporting ESG results in 2016.

Tanger is moving forward on other plans to lessen its environmental and climate impact, working on a “science-based plan” to achieve net zero emissions by 2050 in a way that aligns with the REIT’s business strategy, Yalof said during the second quarter earnings call. McDonald also pointed to sustainability as an area of continuing investment for the company.

“We've talked about some of the sustainability initiatives with solar, with EV charging stations, different value-enhancing opportunities within the existing portfolio,” he said in response to questions about the REIT’s plans for its high cash balance. “And then we're looking at opportunities to grow the portfolio and leverage our platform, bring our scale, create value outside of the existing portfolio. So…we'll continue to pursue opportunities to grow the company and invest these dollars accretively.”