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Jun 30, 2021
Tanger Q2 2021 Earnings Report
Reported financial results for the second quarter of 2021, raised guidance, and exceeded 2019 traffic and tenant sales.
Key Takeaways
Tanger Factory Outlet Centers reported strong second-quarter results, with traffic to domestic open-air centers surpassing 2019 levels and tenant sales increasing. The company raised its full-year guidance due to better-than-expected operating performance.
Net income available to common shareholders was $0.02 per share, or $2.3 million.
Funds From Operations (FFO) available to common shareholders was $0.30 per share, or $32.4 million.
Core Funds From Operations (Core FFO) available to common shareholders was $0.43 per share, or $46.3 million.
Consolidated portfolio occupancy rate was 93.0% on June 30, 2021.
Tanger
Tanger
Tanger Revenue by Segment
Revenue by Segment
Rental Revenue
CapyFin.comManagement, Leasing & Other Services Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Driven by strong traffic and sales during the first half of 2021, the results of Tanger’s business operations exceeded expectations and drove higher variable rents and other revenues, resulting in an increase in the Company’s 2021 full-year guidance.
Positive Outlook
- Estimated diluted net income per share between $0.20 and $0.27
- Estimated diluted FFO per share between $1.36 and $1.43
- Estimated diluted Core FFO per share between $1.52 and $1.59
- Decrease in lease termination fees, to approximately $2 million to $3 million, from $12 million in 2020
- Combined annual recurring capital expenditures and second generation tenant allowances of approximately $25 million to $30 million
Challenges Ahead
- A $9 million to $10 million, or $0.08 to $0.09 per share, decrease in lease termination fees
- Additional lease adjustments and the recapture of up to 200,000 square feet related to recent tenant bankruptcy filings and restructuring announcements, including 135,000 square feet recaptured through the end of July
- No further domestic government-mandated retail shutdowns or store capacity limitations
- General and administrative expense of between $59 million and $62 million, including $2.4 million of compensation related to a voluntary retirement plan and other executive severance incurred during the first quarter
- Approximately $0.06 of net dilution related to the 10.0 million common shares issued under the Company’s ATM program, including $0.02 for the 3.1 million common shares issued during the second quarter of 2021
Revenue & Expenses
Visualization of income flow from segment revenue to net income