Sep 30, 2024

Tanger Q3 2024 Earnings Report

Reported strong performance and increased full-year guidance.

Key Takeaways

Tanger reported a strong third quarter with positive leasing spreads for the 11th consecutive quarter. The company increased its full-year guidance and maintained a strong balance sheet with ample liquidity.

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

FFO available to common shareholders was $0.54 per share, or $62.7 million.

Core FFO available to common shareholders was $0.54 per share, or $62.7 million.

Occupancy was 97.4% on September 30, 2024.

Total Revenue
$133M
Previous year: $117M
+13.3%
EPS
$0.54
Previous year: $0.5
+8.0%
Occupancy rate
97.4%
Previous year: 98%
-0.6%
Gross Profit
$92.8M
Previous year: $81.8M
+13.3%
Cash and Equivalents
$11.1M
Previous year: $188M
-94.1%
Free Cash Flow
$41M
Previous year: $30.9M
+32.9%
Total Assets
$2.28B
Previous year: $2.21B
+3.2%

Tanger

Tanger

Tanger Revenue by Segment

Forward Guidance

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 $0.88 and $0.92
  • Depreciation and amortization of real estate assets - consolidated and the Company’s share of unconsolidated joint ventures $1.20
  • Estimated diluted FFO per share between $2.08 and $2.12
  • Executive severance costs $0.01
  • Estimated diluted Core FFO per share between $2.09 and $2.13

Challenges Ahead

  • Same Center NOI growth - total portfolio at pro rata share between 4.25% and 5.00%
  • General and administrative expense, excluding executive severance between $75.5 million and $78.5 million
  • Interest expense - consolidated between $60.0 million and $61.0 million
  • Other income (expense) between $0.5 million and $1.5 million
  • Annual recurring capital expenditures, renovations and second generation tenant allowances between $55.0 million and $60.0 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income