Tanger Manufacturing unit Outlet Facilities, Inc. (NYSE:SKT) The Nareit REITweek 2023 Investor Convention Name June 7, 2023 1:15 PM ET
Firm Members
Michael Bilerman – EVP, CFO & CIO
Stephen Yalof – President, CEO & Director
Convention Name Members
Caitlin Burrows – Goldman Sachs Group
Caitlin Burrows
Hello, everybody. Thanks for becoming a member of us. I am Caitlin Burrows, and I cowl REITs at Goldman Sachs. As we speak, now we have Steve Yalof, President, Director, and CEO of Tanger. We now have Michael Bilerman, Government Vice President, CFO, and Chief Funding Officer at Tanger.
Query-and-Reply Session
Q – Caitlin Burrows
So I’ll begin off with some questions right here. In order all people might or might not know, inside Tanger, there’s quite a lot of new folks have been added to the administration staff since 2020. Steve, in 2020. Michael, extra not too long ago. And so I believe with new administration has come some new methods. So I believe a type of that has been making a significant distinction is that you’ve got been welcoming some retailers that have not or makes use of that have not traditionally been within the properties. So I used to be questioning in case you might discuss just a little bit about that chance? And to what extent it will increase your universe of potential tenants or retailers to work with?
Stephen Yalof
Nicely, thanks for the query. Thanks for internet hosting us, by the best way, and welcome, all people, particularly the . We’re thrilled to have you ever right here. So Tanger Shops, as you all know, we’re 36 buying facilities, home to in Canada. We now have our thirty seventh middle that can open up in October in Nashville, Tennessee.
What’s fascinating about our portfolio and blend, Stanley Tanger, the founding father of our firm, 42 years in the past invented the entire outlet enterprise. And primarily, he was shirt producer working in Greensboro, North Carolina, realizing you may promote extra product out of the again door than he might with prospects coming within the entrance door. And so took all of their extra stock and turned it into money by promoting that extra product at discounted costs, become an trade. And now because the stewards of that exact enterprise, we’re discovering we’d like to vary with the instances.
So significantly throughout COVID, what we discovered being an open-air buying middle format that quite a lot of our prospects loved coming, spending time, however apart from that energy buying expertise that you just sometimes get in an outlet middle, there was not an amazing quantity extra to do. So we found that if we added a greater meals and beverage program, then possibly our consumers would come and keep just a little bit longer.
After which we realized they have been coming with carloads of individuals as a result of quite a lot of our markets are in vacationer locations, principally drive to American buying locations. And what we discovered was if we had extra issues for folks in that automobile full of individuals to do, some may store, some may go to a restaurant, some may need an leisure expertise. So we began to diversify a bit and go after totally different makes use of in our facilities. And it is really turn into a signature a part of what we’re doing and the way we’re rising our portfolio.
Caitlin Burrows
And so I suppose, even on the retailer facet, I believe you guys have given us some examples of not essentially off-price ideas that you just’re opening as much as. So are you able to discuss just a little bit about that and the way it finally ends up supplying you with extra alternative and likewise possibly combine within the legacy sort tenants that you’ve got, the curiosity they having possibly going deeper into the portfolio.
Stephen Yalof
Sure. Positive. So simply — I imply, once more, simply to border the query just a little bit higher, 30 years in the past, I used to be leasing outlet area for a New Plan Realty Belief for these of you who keep in mind that firm, now often called Brixmor. So I have been within the enterprise for fairly a while. The profile of an outlet middle 30 years in the past seems tremendously totally different than what an outlet middle seems like as we speak, particularly the tenants. Liz Claiborne and Mikasa have been the two key tenants again in these days.
Now you’ll be able to’t have an outlet middle on this — within the present setting with no Nike, and a Polo, Ralph Lauren. All of that stated, we’re leasing that new buying middle in Nashville, Tennessee that I used to be simply speaking about that opens up in October. Of the 60 shops that we’ll have in that preliminary section, 14 of these manufacturers which might be coming into the middle might be model new to outlet and model new to our portfolio.
Caitlin Burrows
One other factor that has gotten quite a lot of consideration and popping out of COVID was the technique of yours was to fill vacancies with non permanent tenants. So proper now, that is about 10% of the portfolio. Questioning in case you might speak about sort of the chance of changing or changing these tenants? And what sort of tempo folks ought to count on to see that 10% probably come down?
Stephen Yalof
Sure. Non permanent leasing is not a brand new technique. It is one thing that we have been doing for a extremely very long time. And tenants take type in many alternative methods. So you will have a pop-up tenant. That is a tenant that possibly hasn’t been within the outlet. And to start with, there’s quite a lot of obstacles to entry to enter the outlet enterprise. You want extra product if you are going to promote at outlet costs.
So there’s quite a lot of manufacturers, we simply signed a lease with this new model, Vuori. I will use them for instance. Vuori most likely has fewer than 50 shops throughout the nation proper now. So how a lot extra do they actually have. In order they’re beginning to consider that outlet technique and open up new outlet shops, they’re going to most likely do 1 or 2. And once they signal a lease, they’re saying, properly, how will we guarantee that now we have sufficient product for that time period of that lease. So of their case, we did a short-term lease with them as a result of they do not know how a lot they want.
We did comparable offers 5 years in the past with Winery Vines 10 years in the past with UGG. And what occurred was they discovered that not solely did outlet give them a chance to show extra stock into money. It additionally gave them the chance to work together with a brand-new buyer, one which possibly they by no means noticed at a full-price channel earlier than.
So it was an amazing buyer acquisition software to carry a buyer that is at all times been taken with your model, possibly just a little worth resistant on the larger finish of the worth level and provides them a chance to interact with that model within the buying middle.
Caitlin Burrows
And so I believe one of many potential drivers from right here is simply the lease distinction of that sort of tenant versus the full-term tenant?
Stephen Yalof
Nicely, sure. So within the case of a pure short-term lease, once I began right here 3 years in the past, one of many basic adjustments that we made as a corporation was we determined that every of our buying facilities was going to be — we’ll decentralize, and principally run 36 separate companies versus simply the one enterprise, let every of the overall managers on the buying middle run their mall, like and run their P&L, like they have been the CEO of that enterprise. When there’s emptiness within the middle, we made it incumbent on that basic supervisor and his staff on-site to fill that emptiness with short-term leasing.
In order that even when it is a frictional emptiness and I will outline frictional emptiness as 1 tenant leaves in January and the following tenant shouldn’t be going to take supply of possession till April. How do you fill that area for 3 months to maintain it money flowing. So we lean fairly closely on our basic administration staff with a purpose to fill that area. All of these leases that we do, these short-term leases are 30-day landlord rights of cancel as a result of it offers us the chance that if a brand new tenant is available in that is going to pay us full lease, now we have the pliability to guarantee that we are able to get that tenant out.
A few of these makes use of are nice makes use of they usually wind up staying. We wind up signing long-term leases for them. We wind up taking them from the middle that they initially began with us into 2, 3, 4 and 5 facilities downstream. So a purpose for our historic short-term leasing was about 5% or 6% of our portfolio. It is gotten as much as about 9% or 10% of our portfolio. And quite a lot of it has to do with the truth that we’re inducing these middle managers to out and guarantee that there’s by no means a vacant area in any of our facilities.
Caitlin Burrows
And in order we take into consideration sort of the demand that you just guys are creating for the facilities, I believe for Tanger, and for different retail REITs, we have seen that retention has been excessive not too long ago. So questioning in case you can touch upon retention. And I suppose, finally, then if there’s a lot demand, how that finally ends up impacting your pricing energy?
Stephen Yalof
We would not — so I stated 30 years in the past, I labored in New Plan Realty Belief. I had a few excursions of responsibility via each the Hole and Ralph Lauren, leasing retail area from the retailer’s viewpoint. And also you be taught a few issues when you’ve that chance, one in every of which is retailers do not like to surrender shops, particularly in the event that they’re money flowing positively they usually’re additionally absolutely amortized. So we have had nice retention on the finish of our renewal cycles, saving tenants, maintaining tenants in and getting them to pay extra lease.
So in case you check out our renewal spreads, double-digit renewal spreads, that means we’re getting tenants who’ve stayed within the buying middle, who’ve been doing enterprise there for fairly a time period, voting not solely to remain, however to pay over 10% extra to remain. And that is been nice retention. Traditionally, we most likely had 80% retention on the renewal entrance. Now we’re over 90%.
Now a few of these tenants, you do not wish to preserve. Some will attrit. We’re trying to drive our gross sales efficiency on a per sq. foot foundation. So to ensure that us to try this, now we have to do some — make some asset administration strikes. A few of that requires us changing a tenant with a extra productive tenant or taking a tenant that is likely to be outsized in one in every of our buying facilities and downsizing them.
And like I stated, once they have a completely constructed and absolutely amortized retailer, that is, that is fairly a feat to get any individual to kind of both relocate right into a smaller field and construct a brand-new retailer, particularly within the outlet enterprise or in some cases, we’ll work with them to downsize them in order that we are able to get a much more productive tone in an adjoining area.
Caitlin Burrows
Possibly you talked about the Nashville mission and the way there’s quite a lot of new retailers coming there. Possibly you may discuss just a little bit extra about Nashville. I do know Tanger traditionally was very energetic in growth. That is the primary one shortly. Type of what makes this mission particular outlook for future growth and sort of return expectations for this one?
Stephen Yalof
We’re consistently pondering of the shop of the longer term. Our imaginative and prescient assertion talks about how we use the shopper perception and buyer expertise to tell the way forward for buying. In order that’s our company imaginative and prescient assertion. So principally, what it means is that we hearken to our prospects, our consumers, within the outlet is, you’ve 2 prospects, proper? We now have the consumer, and we even have the retailers, as a result of it is incumbent on us to market to the purchasers that come and store in our facilities. That is a part of our enterprise.
Within the outlet area, quite a lot of the manufacturers aren’t utilizing their promoting {dollars} to inform the purchasers they’re in and outlet. They’d relatively ship their prospects they’re full-price enterprise. Within the case of Nashville, what we have heard our prospects say is hiring folks is sort of difficult, significantly in a few of these distant markets the place there are outlet facilities.
Within the case of Nashville, we’re quite a bit nearer into markets than we have been previously. However corporations like Nike, who make use of an amazing quantity of individuals are in search of ways in which they are often much less depending on a full employees, and one of many methods they’re executing to that’s they’re constructing a brand new retailer that offers them a loading zone at the back of their buying middle — at the back of their retail retailer, so it will probably assist facilitate higher entry to merchandise.
So within the case of these, what we name racetrack design facilities, all of the parking is on the surface and the buying facilities on the within. In Nashville, what we have designed is a shopping mall with a parking on the within once more. And what that does, it permits for curbside pickup.
Plenty of our prospects wish to drive up and have the merchandise introduced out, whether or not it is meals and beverage or if it is really merchandise that they are shopping for. However equally, it offers a backdoor and truck-loading entry for all of our retailers, so it higher facilitates that loading expertise for them and their dependency on employees.
Caitlin Burrows
I believe one of many different issues that you just guys have not too long ago gotten into is outparcel exercise. So it is one thing we have see within the strip middle REITs traditionally do. So with the bulletins you had about Shake Shack and Dave & Buster’s, questioning in case you might possibly discuss particularly about these initiatives after which extra broadly how large this chance could possibly be.
Stephen Yalof
I’ll flip it over to my pal, Michael, as a result of I am getting bored with listening to myself speaking.
Michael Bilerman
Thanks, Steve. So we take into consideration general how we are able to activate and reap the benefits of the land that now we have surrounding our property. And we have been deploying quite a lot of totally different methods, whether or not it is F&B ideas or leisure ideas into the parking fields and the encircling land that now we have. And we have additionally achieved different makes use of.
So we simply opened up a lodge in Rehoboth Seashore on leased land. We’re not taking the lodge earnings, however we now have an added amenity within the markets that we serve, and we really feel that the capital deployment may be very engaging from a return perspective as a result of we’re lease free, we already personal it. And so we’re in a position to generate vital returns on our capital, however extra importantly, proceed to drive dwell time at our facilities, present alternatives for the purchasers to remain and have totally different facilities on the fore.
We talked — you talked just a little bit about Nashville. Nashville for us is $146 million spend. We’re a $3.6 billion firm. Nashville general, delivering for us subsequent 12 months at a — we have put out a yield of seven% to 7.5%. That is a significant driver for our firm general by way of our money circulate progress.
Caitlin Burrows
And so I suppose as we take into consideration the sort of potential for the outparcel technique, do you assume that may be — I imply, they’re clearly, every mission is comparatively small. Can that be a needle mover? Or is it a pleasant to have? Or how impactful do you assume that could possibly be?
Michael Bilerman
I imply we predict a minimum of over half of our facilities have some type of peripheral land alternative that we really feel that we are able to drive elevated lease. And I do not assume it may be a needle mover in 1 12 months as a result of that is an ongoing initiative, however it may add to our money circulate progress in addition to our same-store progress.
Caitlin Burrows
I believe one other factor you guys have been speaking about not too long ago is your willingness to take a look at potential acquisitions. Clearly, the correct alternative would wish to come back up. So questioning in case you might speak about if that is outlet facilities and/or one thing else.
Michael Bilerman
So if we step again, to start with, it is the place our stability sheet is, and the place our working platform is, that is giving us the arrogance to have the ability to look externally. So simply beginning first on the stability sheet the place we’re. We’re 5x web debt-to-EBITDA, which is among the lowest within the REIT sector and positively one of many lowest within the retail sector.
However as a part of that 5x web debt to EBITDA, we even have $242 million, simply to be actual of money sitting on our stability sheet, which is over $2 a share. And in order that money that is sitting on our stability sheet helps to fund the remaining spend in Nashville, however offers us the capability together with our line of credit score in addition to leverage capability to deploy that capital.
After which we take into consideration our working platform throughout what we’re doing in leasing, operations and advertising, bringing the Tanger working platform to bear — we clearly have the outlet enterprise that we are able to take a look at alternatives to take over institutionally owned or in enterprise format with others, however increasing the scope just a little little bit of what we’re to extra way of life or hybrid the place we are able to inject some worth orientation in and suits with the entire working platform that now we have throughout the worth retail area.
Caitlin Burrows
And as you’re testing these potential acquisitions, I imply, one of many issues we carry on listening to is how the bid-ask unfold is broad and/or simply transaction volumes are comparatively low. So any commentary you may give on alternatives that you’ve got seen? Or are you continue to sort of ready, clearly, nothing to occur, however simply exercise?
Michael Bilerman
Sure. We’re spending a major period of time uncovering quite a lot of transactions, each which might be coming to us, the place now we have potential events reaching out to us to see how we will be useful to them of their middle due to our working platform. After which we’re additionally curating our personal exercise looking for facilities that might match with our capabilities in our portfolio general.
We’ve not closed on something. We do not have something below contract to announce, however we’re spending a major period of time within the market, and there is a honest quantity of uncertainty, proper? The debt markets are nonetheless not at a degree the place they’re permitting for everybody to have the ability to refinance. And our stability sheet, which is basically an unsecured stability sheet, has the flexibility to tackle some type of secured debt from others to make a transaction work.
Caitlin Burrows
And as I believe you talked about how leverage is round 5x. In order you consider this measurement of a possible transaction, I suppose, how excessive would you be, I suppose, prepared to carry that quantity and over a sure level, I suppose, is 5 the place you wish to be and the way excessive might it go? And if it bought to a sure stage, how would you carry it again down?
Michael Bilerman
Sure. We have talked a few 5 to 6x vary, someplace we really feel comfy with, however that does not consider. Two elements, one, our EBITDA remains to be rising. And so we take a look at our same-store steering for this 12 months. We began this 12 months at 2% to 4%. We lifted that after the primary quarter to $275 million to $475 million. And so we really feel our same-store continues to develop.
After which the opposite facet is, whereas we pay a dividend and we’re returning capital to shareholders, we even have a really low payout ratio. So working about 60% now. So now we have a major quantity of free money circulate that we are able to use and lever to have the ability to deploy that enables us a a lot wider exterior progress potential than simply taking our leverage up. And so it is these elements that give us quite a lot of confidence they’re going to have the ability to deploy capital accretively.
Caitlin Burrows
Switching gears to the stability sheet facet. So possibly sticking with you with a distinct matter or comparable matter, they’re all associated. However possibly if we take into consideration the rate of interest swaps that you’ve got that mature in 2024, you guys have addressed a few of them. I believe you alluded to on the convention name that you just may elect to maintain half floating. How are you enthusiastic about probably addressing the remainder of these swaps and what quantity of floating price debt might make a greater sense.
Michael Bilerman
So there’s two components to that query. The primary is we do have $300 million of floating price debt that we swapped beforehand, and people swaps expire subsequent February on $300 million of debt. We have been in a position to execute these swaps beforehand at a SOFR price of fifty foundation factors. We acknowledge floating charges as we speak are a lot larger than that. And now we have already gone into {the marketplace} to reswap on a ahead beginning foundation, 1/3 or $100 million of that $300 million of floating price debt.
So if we do not do something from right here, we’ll have $200 million of debt that is presently costing us 50 foundation factors plus a diffusion. That may go as much as no matter market charges are at the moment, until we placed on new swaps as we speak. That is a sure vary of rate of interest expense headwind that we’re educated about, all of the analysts perceive that, the funding neighborhood understands it.
The second a part of the query is, properly, how a lot floating price debt ought to you’ve, proper? We now have simply the mark-to-market on our price of debt. After which the query turns into, properly, how a lot floating price debt publicity ought to now we have as a company. And so simply basic sense, now we have $1.6 billion of whole debt. I discussed earlier than, now we have $242 million of money. We solely have $109 million as we speak of floating price publicity, however we even have $240 million of floating price property as a result of that flows.
So we’re really in a web constructive. We even have adverse floating price debt the place we sit as we speak. In order we kind of take into consideration, we all know the rate of interest headwind that now we have to cope with that’s properly understood and as properly kind of guided however we’re comfy having some stage of floating price debt on our stability sheet, particularly as a result of we’re such an operating-intensive enterprise that has shorter length leases, proper, 15% to twenty% of our leases roll yearly.
And so having that momentum and with the ability to match that facet, we predict it is okay to have the REIT trade, by the best way, it is bought 20% floating price debt publicity. So in case you simply took the 20%, we would be at $320 million, we can’t be that the place we sit as we speak.
Caitlin Burrows
One other current replace related to you Michael, is I do know you have bought an inaugural score from Fitch of BBB, and that could be a step above the present S&P and Moody’s scores. So questioning in case you might speak about that, any direct influence it has close to time period and the outlook for the opposite businesses in case you assume it is related?
Michael Bilerman
So we’re more than happy we have been in a position to get a BBB flat score from Fitch to acknowledge the energy of our stability sheet. It does have — it is not similar to you place it on the wall. I did put your purchase score on the wall, however I did not put the Fitch score on the wall in sense of it does have a direct monetary influence. And it is — we save 25 foundation factors on our $325 million time period mortgage and 25 foundation factors on our $520 million line of credit score.
We now have nothing drawn on our line of credit score, so it simply successfully lowers our price of capital as we borrow on that. However we additionally save 5 foundation factors on our admin payment. In totality, in case you do the mathematics, as a result of I’ve achieved it, I simply rattled off quite a lot of numbers. It is about $1 million of annual financial savings that we have dropped at the underside line. And we predict what we’re making an attempt to do is cut back our price of capital as a lot as attainable to have the ability to deploy that capital as accretively as we take a look at potential exterior progress initiatives.
Unidentified Firm Consultant
Have the opposite company…
Michael Bilerman
The opposite — I imply, I can not converse for Moody’s and S&P in the event that they’re within the viewers, wonderful, however they’re clearly in accordance with their very own committees. We really feel strongly about the place our present metrics are and the well being of our enterprise, which throughout the retail panorama, we really feel the outlet channel is such a important significance for the retailers and the manufacturers. They are going to decide on as they undergo their committees, whether or not they wish to improve and all their different elements that go along with it.
Caitlin Burrows
I’ll ask one other one if anyone else whereas they’re talking has a query, you’ll be able to elevate your hand in order that I do know. Okay, seems like there might be. Okay. Right here you go.
Unidentified Analyst
Present setting. Shoppers are simply placing — just a little bit extra tentative, I imply, you bought to see the gross sales of your tenancy in search of this subsequent to illustrate 6, 12, 18 months, after which, I suppose, you have bought extra of a price buying developments or possibly just a little bit totally different than the…
Caitlin Burrows
Sure. I am simply going to repeat the query. For the folks on the road. So the query was simply given uncertainty with the patron, what is the outlook for gross sales over the following 6, 12, 18 months? And in addition simply noting that the patron and the Tanger portfolio could also be just a little bit extra worth oriented, so how that would play in as properly.
Stephen Yalof
So to start with, we’re throughout many, many classes of retail. So it is — we’re not simply apparels, simply footwear. We’re within the cosmetics enterprise, we’re within the meals and beverage enterprise, we’re within the grocery enterprise in a few of our buying facilities. However we’re fairly optimistic. Pre-COVID our gross sales per sq. foot have been south of $400 a sq. foot. Proper now, we’re about $450 a sq. foot. So we’re about 15% larger than that.
The excessive watermark for us was ’21, the place we bought to about $465 a sq. foot. And that is necessary in 2021, when principally the federal government took all people’s passport away, no person was touring. We had a fairly properly captured market right here and to have sustained quite a lot of that improve over this time period via this inflationary headwind and elevated fuel worth and the entire different macroeconomic and environmental challenges that we confronted, I believe what we’re seeing and what we have seen within the 42 years in operation via many, many cycles is whether or not it is a recession or inflation, when individuals are challenged with regard to what they will purchase, they will search one of the best worth for that product.
And what’s fascinating about our platform is that we’re not a discounter. We’re not promoting a commodity on the most cost-effective worth. So for instance, in case you’re out there for a pair of sneakers, we’re not $1 sneakers. We’re in search of the patron that is in search of a branded product at the absolute best worth. So if it is the sneaker class, in order for you Adidas or Nike or Puma or Below Armour, then that shopper goes to come back to us as a result of they will get worth priced each day.
Caitlin Burrows
Possibly a query on the watch record and basic tenant credit score. That is one thing that it looks like it bought a lot better popping out of COVID. I suppose the place do you see that as we speak? And given this unsure shopper, how do you count on impacts going ahead?
Stephen Yalof
Sure. We now have no materials points with regard to observe record proper now. Plenty of the retailers who’re on the watch record or those that — or retailers that individuals are maintaining their eyes on. Two, particularly, we have simply achieved offers with. So the worth channel and significantly the outlet area, the price of coming into the outlet area is comparatively low. Our OCRs, our occupancy price ratio remains to be south of 9%. So comparatively low cost for retailers.
Equally, the price of development in an outlet versus the price of development and some other bricks-and-mortar format is more and more much less. And due to that, quite a lot of these shops will keep open far longer as retailers make selections to shut shops of their fleet. We simply all examine Journeys is closing quite a lot of shops, and we have got large Journey publicity throughout our portfolio. However ICSC, which is the buying middle conference, which was 2 weeks in the past, after we sat — we met with the Genesco staff, they don’t have any plans on closing any of their outlet shops. They’re productive. They’re comparatively cheap to run, they usually contribute quite a lot of 4-wall revenue to their backside line.
Caitlin Burrows
Are there some other questions within the viewers? Okay, I can do one other one. Possibly in case you might discuss just a little bit extra in regards to the meals and beverage alternative. I believe traditionally, properly, Tanger did not traditionally have quite a lot of meals and beverage, at the same time as we noticed or not it’s added to the normal malls pre-COVID. So questioning sort of what’s modified and why it is smart as we speak.
Stephen Yalof
It is fascinating, similar to the outlet enterprise and the shoppers are in search of manufacturers at worth. There’s at all times going to be nice manufacturers which might be extremely popular in marketplaces. It is our feeling that the meals courtroom is the factor of the previous that prospects are actually in search of extra of a bespoke expertise, whether or not it is sit-down, fast service restaurant or a model that is likely to be extra indigenous to {the marketplace} the place now we have a shopping mall.
So for instance, we’re constructing Nashville, and we have got one of many well-known sizzling rooster manufacturers will be part of us in our Nashville buying middle. We simply did a Shake Shack in San Marcos, Texas. It will likely be our first Shake Shack in an outlet with hopefully extra to come back downstream.
However what’s nice a few Shake Shack, simply to make use of them for instance, is in a extremely aggressive market, Shake Shack is likely to be the draw for the shopper. And if that buyer goes to park their automobile in a parking zone and go and sit down and have lunch at Shake Shack, we predict we’ll get them to — we’ll preserve that automobile for longer they usually’ll keep for the buying. Come for the meals and keep for the buying, which is a far totally different narrative than the outlet middle enterprise of a few years in the past.
Caitlin Burrows
Nicely, I believe that is likely to be our key, however it is time to finish to — oh, wait, we are able to do one fast one. We bought a minute and 23 seconds.
Unidentified Analyst
Are you able to simply speak about your [indiscernible]
Caitlin Burrows
So the query was simply in regards to the JVs in Canada and the way that matches in.
Michael Bilerman
Did you do that as a result of I am Canadian.
Unidentified Analyst
Sure.
Michael Bilerman
Positive. I can do it with a Canadian accent. Okay. So — so now we have 2 facilities up in Canada with our accomplice, RioCan, the biggest retail REIT, one of many largest REITs up in Canada. We now have a middle in Ottawa and one up in north of Toronto and Cookstown and now we have an excellent relationship with hem. There are 50-50 offers. And we’re in fixed conversations about potential different alternatives, as Caitlin you requested about our exterior progress initiatives, a part of that, we’re not simply wanting domestically. And so we’re wanting north of the border in addition to probably methods to develop collectively and proceed a partnership.
Sure. Yet one more over right here.
Unidentified Analyst
Positive, sure. Have you ever rolled out in February approaching to along with retail panorama. How visitors patterns…
Caitlin Burrows
So your query is simply how has visitors been impacted by the addition of meals and beverage.
Stephen Yalof
I believe meals and beverage helps. You are creating one other draw on the buying middle, however we’re seeing the identical buyer come again way more continuously than we did previously, and that is a brand new storyline for our enterprise.
Caitlin Burrows
Okay. Now we’ll finish it there. Thanks, all people.
Unidentified Firm Consultant
Thanks.
