Mar 31, 2024

Tanger Q1 2024 Earnings Report

Reported strong financial and operating results, grew same center occupancy, achieved consecutive quarter of positive rent spreads, and increased and improved pricing of unsecured lines of credit.

Key Takeaways

Tanger reported strong first quarter results with net income available to common shareholders at $0.20 per share, and FFO available to common shareholders was $0.51 per share. Same center NOI increased by 5.2% year over year, and occupancy was 96.5%.

Net income available to common shareholders was $0.20 per share, or $22.2 million.

Funds From Operations (FFO) available to common shareholders was $0.51 per share, or $58.6 million.

Core Funds From Operations (Core FFO) available to common shareholders was $0.52 per share, or $60.1 million.

Occupancy was 96.5% on March 31, 2024.

Total Revenue
$124M
Previous year: $109M
+13.5%
EPS
$0.52
Previous year: $0.46
+13.0%
Occupancy rate
96.5%
Previous year: 96.5%
+0.0%
Gross Profit
$54M
Previous year: $75.8M
-28.7%
Cash and Equivalents
$15.9M
Previous year: $203M
-92.2%
Total Assets
$2.3B
Previous year: $2.19B
+5.3%

Tanger

Tanger

Tanger Revenue by Segment

Forward Guidance

Management is increasing its full-year 2024 guidance with its current expectations for net income, FFO and Core FFO per share for 2024.

Positive Outlook

  • Estimated diluted net income per share is expected to be between $0.84 and $0.92.
  • Depreciation and amortization of real estate assets - consolidated and the Company’s share of unconsolidated joint ventures is expected to be 1.18.
  • Estimated diluted FFO per share is expected to be between $2.02 and $2.10.
  • Executive severance costs are expected to be 0.01.
  • Estimated diluted Core FFO per share is expected to be between $2.03 and $2.11.

Challenges Ahead

  • Same Center NOI growth - total portfolio at pro rata share is expected to be between 2.25% and 4.25%.
  • General and administrative expense, excluding executive severance is expected to be between $76.5 million and $79.5 million.
  • Interest expense - consolidated is expected to be between $59.5 million and $61.5 million.
  • Other income (expense) is expected to be between $0 million and $2.0 million.
  • Annual recurring capital expenditures, renovations and second generation tenant allowances is expected to be between $50.0 million and $60.0 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income