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Tanger
🇺🇸 NYSE:SKT
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OverviewEarningsDividends
•
Mar 31, 2023

Tanger Q1 2023 Earnings Report

Tanger reported strong first quarter results, driven by positive blended rent spreads and increased occupancy. The company increased full-year guidance.

Key Takeaways

Tanger Factory Outlet Centers reported a net income of $0.22 per share, or $23.3 million, for the first quarter of 2023, compared to $0.19 per share, or $20.3 million, for the prior year period. Occupancy was 96.5% on March 31, 2023, compared to 94.3% on March 31, 2022. Blended average rental rates increased 13.8% on a cash basis. The company increased its full-year 2023 guidance.

Net income available to common shareholders was $0.22 per share, or $23.3 million, compared to $0.19 per share, or $20.3 million, for the prior year period.

Occupancy was 96.5% on March 31, 2023, compared to 94.3% on March 31, 2022.

Same center net operating income increased 7.4% to $83.6 million for the first quarter of 2023 from $77.8 million for the first quarter of 2022.

Blended average rental rates improved for the eighth consecutive quarter, increasing 13.8% on a cash basis.

Total Revenue
$109M
Previous year: $109M
+0.1%
EPS
$0.46
Previous year: $0.45
+2.2%
Occupancy rate
96.5%
Previous year: 94.3%
+2.3%
Gross Profit
$75.8M
Previous year: $72.1M
+5.1%
Cash and Equivalents
$203M
Previous year: $153M
+32.7%
Free Cash Flow
$48.4M
Total Assets
$2.19B
Previous year: $2.13B
+2.4%

Tanger

Tanger

Tanger Revenue by Segment

Forward Guidance

Based on the Company’s results to date and its outlook for the remainder of 2023, management is increasing its full-year 2023 guidance with its current expectations for net income, FFO and Core FFO per share for 2023.

Positive Outlook

  • Estimated diluted net income per share between $0.89 and $0.97
  • Depreciation and amortization of real estate assets - consolidated and the Company’s share of unconsolidated joint ventures of 0.94
  • Estimated diluted FFO per share between $1.83 and $1.91
  • Reversal of previously expensed compensation related to executive departure of (0.01)
  • Estimated diluted Core FFO per share between $1.82 and $1.90

Challenges Ahead

  • Same Center NOI growth - total portfolio at pro rata share between 2.75% and 4.75%
  • General and administrative expense, excluding executive departure adjustments between $73 million and $76 million
  • Interest expense between $47 million and $49 million
  • Other income (expense) between $5 million and $7 million
  • Annual recurring capital expenditures, renovations and second generation tenant allowances between $50 million and $60 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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