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Dec 31, 2019
Tanger Q4 2019 Earnings Report
Tanger's Q4 2019 performance was marked by a net loss, but strong leasing execution maintained high occupancy.
Key Takeaways
Tanger Factory Outlet Centers reported a net loss of $0.13 per share, or $12.1 million, for Q4 2019, compared to a net income of $0.21 per share, or $19.4 million, for the prior year period. However, the consolidated portfolio occupancy rate remained high at 97.0%.
Consolidated portfolio occupancy rate was 97.0% on December 31, 2019.
Blended average rental rates increased 2.7% on a straight-line basis.
Same center net operating income decreased 0.4%.
Average tenant sales productivity was $395 per square foot.
Tanger
Tanger
Tanger Revenue by Segment
Revenue by Segment
Rental Revenue
CapyFin.comManagement, Leasing & Other Services Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Management expects net income per share to be between $0.65 and $0.73 and FFO per share to be between $1.96 and $2.04 for 2020.
Positive Outlook
- Same Center NOI guidance reflects impact related to the Jeffersonville, Ohio property
- Projected average occupancy for the year is expected to be between 92% and 93%
- Known closures related to all of the Dressbarn and Kitchen Collection stores and certain Forever 21 and Destination Maternity stores that all closed in January
- Projected full-year lease termination fees of approximately $1.5 million for the consolidated portfolio
- Decreased interest expense, including approximately $0.01 at the joint venture level
Challenges Ahead
- Same Center NOI guidance for the consolidated portfolio between (6.75)% and (8.25)%.
- Approximately (0.7%) impact related to the Jeffersonville, Ohio property, for which the Company recorded a significant impairment as discussed above
- Projected average occupancy for the year is expected to be between 92% and 93%
- 303,000 square feet of known closures related to all of the Dressbarn and Kitchen Collection stores and certain Forever 21 and Destination Maternity stores that all closed in January
- 322,000 to 372,000 square feet of potential additional closures that are unknown or unresolved at this time