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Sep 30, 2021
Tanger Q3 2021 Earnings Report
Tanger reported strong quarterly results driven by leasing efforts and percentage rental growth.
Key Takeaways
Tanger Factory Outlet Centers reported a net loss of $11.0 million, or $0.11 per share, but Core FFO available to common shareholders was $51.8 million, or $0.47 per share. The company's occupancy rate increased to 94.3%, and tenant sales reached an all-time high of $448 per square foot. Tanger also increased its annualized dividend by 2.8% to $0.73 per share.
Occupancy reached 94.3%, up 130 basis points since June 30th and 140 basis points over the last twelve months.
Rent spreads improved by 240 basis points sequentially on a cash basis.
Percentage rental growth was more than two and a half times the comparable 2019 period during the third quarter.
Tenant sales reached an all-time high of $448 per square foot for the consolidated portfolio during the twelve months ended September 30, 2021, an increase of more than 13% over the comparable 2019 period.
Revenue by Segment
Forward Guidance
Driven by strong traffic and tenant sales during the first nine months of 2021, the results of Tanger’s business operations exceeded expectations and drove higher variable rents and other revenues, leading the Company to increase 2021 full-year Core FFO guidance.
Positive Outlook
- A $9 million to $10 million, or $0.08 to $0.09 per share, decrease in lease termination fees, to approximately $2 million to $3 million, from $12 million in 2020
- Additional lease adjustments and the recapture of up to 150,000 square feet related to recent tenant bankruptcy filings and restructuring announcements, including 135,000 square feet recaptured through the end of October
- No further domestic government-mandated retail shutdowns or store capacity limitations
- General and administrative expense of between $60 million and $63 million, including $2.7 million of compensation related to a voluntary retirement plan and other executive severance incurred during the first nine months.
- Approximately $0.06 of net dilution related to the 10.0 million common shares issued under the Company’s ATM program; full-year diluted weighted average common shares of approximately 102 million for net income and 107 million for FFO and Core FFO
Challenges Ahead
- Combined annual recurring capital expenditures and second generation tenant allowances of approximately $12 million to $15 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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