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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.
Tanger
Tanger
Tanger Revenue by Segment
Revenue by Segment
Rental Revenue
CapyFin.comManagement, Leasing & Other Services Revenue
CapyFin.comOther Revenue
CapyFin.com 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