Jun 30, 2024

Tanger Q2 2024 Earnings Report

Reported strong second-quarter results, raised full-year 2024 guidance, and achieved a tenth consecutive quarter of positive rent spreads.

Key Takeaways

Tanger reported a strong second quarter, marked by positive leasing spreads and strategic plan execution, leading to increased full-year guidance. The company's balance sheet remains well-positioned with substantial liquidity and no significant maturities until late 2026.

Net income available to common shareholders was $0.22 per share, or $24.6 million.

FFO available to common shareholders was $0.53 per share, or $60.9 million.

Occupancy was 96.5% on June 30, 2024.

Blended average rental rates were positive for the tenth consecutive quarter at 15.1%.

Total Revenue
$129M
Previous year: $111M
+16.6%
EPS
$0.53
Previous year: $0.47
+12.8%
Occupancy rate
96.5%
Previous year: 97.2%
-0.7%
Gross Profit
$90.5M
Previous year: $76.9M
+17.7%
Cash and Equivalents
$9.06M
Previous year: $213M
-95.7%
Total Assets
$2.29B
Previous year: $2.2B
+4.4%

Tanger

Tanger

Tanger Revenue by Segment

Forward Guidance

Based on the Company’s results to date along with its outlook for the remainder of 2024, 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 between $0.85 and $0.92.
  • Depreciation and amortization of real estate assets - consolidated and the Company’s share of unconsolidated joint ventures is 1.19.
  • Estimated diluted FFO per share between $2.04 and $2.11.
  • Executive severance costs 0.01.
  • Estimated diluted Core FFO per share between $2.05 and $2.12.

Challenges Ahead

  • Same Center NOI growth - total portfolio at pro rata share between 3.25% and 4.75%
  • General and administrative expense, excluding executive severance between $76.5 million and $79.5 million
  • Interest expense - consolidated between $60.0 million and $61.5 million
  • Other income (expense) between $0 and $2.0 million
  • Annual recurring capital expenditures, renovations and second generation tenant allowances between $50.0 million and $60.0 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income