Tanger Q2 2022 Earnings Report
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.
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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