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Sep 30, 2023
Tanger Q3 2023 Earnings Report
Reported strong third-quarter results, grew occupancy, achieved positive rent spreads, and raised full-year 2023 guidance.
Key Takeaways
Tanger reported a strong third quarter with significant occupancy growth and positive rent spreads. The company opened Tanger Outlets Nashville, which is 96.5% leased. Based on better-than-anticipated performance, management is increasing its full-year 2023 guidance.
Net income available to common shareholders was $0.26 per share, or $27.2 million, compared to $0.22 per share, or $23.0 million, for the prior year period.
Occupancy was 98.0% on September 30, 2023, compared to 97.2% on June 30, 2023 and 96.5% on September 30, 2022
Same center net operating income increased 7.6% to $87.9 million for the third quarter of 2023 from $81.7 million for the third quarter of 2022
Blended average rental rates were positive for the seventh consecutive quarter at 14.5% on a cash basis for leases executed for comparable space during the twelve months ended September 30, 2023.
Tanger
Tanger
Tanger Revenue by Segment
Revenue by Segment
Rental Revenue
CapyFin.comManagement, Leasing & Other Services Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Based on the Company’s better-than-anticipated performance in the third quarter and its outlook for the remainder of 2023, management is increasing its full-year 2023 guidance with its current expectations for net income, FFO and Core FFO per share for 2023
Positive Outlook
- Estimated diluted net income per share: Low Range: $0.93, High Range: $0.97
- Depreciation and amortization of real estate assets - consolidated and the Company’s share of unconsolidated joint ventures: Low Range: 0.98, High Range: 0.98
- Estimated diluted FFO per share: Low Range: $1.91, High Range: $1.95
- Reversal of previously expensed compensation related to executive departure (1): Low Range: (0.01), High Range: (0.01)
- Estimated diluted Core FFO per share: Low Range: $1.90, High Range: $1.94
Challenges Ahead
- Same Center NOI growth - total portfolio at pro rata share: Low Range: 4.75 %, High Range: 5.50 %
- General and administrative expense, excluding executive departure adjustments (1): Low Range: $73.0, High Range: $76.0
- Interest expense: Low Range: $47.5, High Range: $48.5
- Other income (expense) (2): Low Range: $8.0, High Range: $9.0
- Annual recurring capital expenditures, renovations and second generation tenant allowances: Low Range: $40.0, High Range: $50.0
Revenue & Expenses
Visualization of income flow from segment revenue to net income