Jun 30, 2022

Tanger Q2 2022 Earnings Report

Tanger's Q2 2022 performance showcased strategic achievements, including blended rent spreads and occupancy growth.

Key Takeaways

Tanger Factory Outlet Centers reported strong second-quarter results with increased net income, FFO, and occupancy. The company is focused on strategic priorities like accelerating leasing and reshaping operations, with a new center under development in Nashville and a strategic partnership at Tanger Outlets Palm Beach.

Net income available to common shareholders was $0.19 per share, or $19.7 million.

Occupancy increased by 170 basis points to 94.9%.

Blended average rental rates increased 4.1% on a cash basis.

Same Center NOI increased 5.1% to $79.8 million.

Total Revenue
$106M
Previous year: $101M
+4.5%
EPS
$0.45
Previous year: $0.43
+4.7%
Total Owned Occupancy
94.9%
Previous year: 93%
+2.0%
Gross Profit
$73.1M
Previous year: $70M
+4.5%
Cash and Equivalents
$194M
Previous year: $108M
+80.5%
Total Assets
$2.16B

Tanger

Tanger

Tanger Revenue by Segment

Forward Guidance

Tanger provided guidance for the year ending December 31, 2022, with estimated diluted net income per share between $0.71 and $0.77 and estimated diluted FFO per share between $1.73 and $1.79.

Positive Outlook

  • Same Center NOI growth for total portfolio between 3.0% and 4.5%.
  • Continued investments in building the team and technology.
  • Executing core strategies of reshaping operations.
  • Accelerating leasing.
  • Growing commercial strategy through digital transformation.

Challenges Ahead

  • General and administrative expense, excluding executive severance costs, of between $69 million and $72 million.
  • Weighted average diluted common shares of approximately 105.0 million for earnings per share and 110.0 million for FFO and Core FFO per share.
  • Combined annual recurring capital expenditures and second generation tenant allowances of approximately $45 million to $55 million.
  • Guidance does not include the impact of the acquisition or sale of any outparcels, properties or joint venture interests.
  • Guidance does not include any additional financing activity.

Revenue & Expenses

Visualization of income flow from segment revenue to net income