SKT
Tanger INC
NYSE
10-Q: Tanger Inc. and Tanger Properties Limited Partnership Report First Quarter 2024 Results
Sentiment:
Quarterly Report
1 May 2024 4:55 PM
Tanger Inc. and Tanger Properties Limited Partnership released their combined unaudited quarterly report for the period ended March 31, 2024, detailing financial performance and operational updates.
Worse than expected
Net income decreased by $1.6 million compared to the first quarter of 2023, indicating a worse performance than the previous year.
Capital raise
The company has an at-the-market stock offering program with approximately $220.1 million of common shares remaining available for sale.
The company may issue equity from time to time on an opportunistic basis, dependent upon market conditions and available pricing.
Summary
- Tanger Inc. and Tanger Properties Limited Partnership have released their first quarter 2024 results, showing a net income of $23.3 million, a decrease from $24.9 million in the same period last year.
- Rental revenues increased by $14.2 million compared to the first quarter of 2023, driven by new developments and acquisitions.
- Property operating expenses increased by $2.3 million, while general and administrative expenses rose by $2.1 million.
- Depreciation and amortization costs increased by $8.0 million, primarily due to new properties.
- Interest expense increased by $2.0 million due to new interest rate swaps and outstanding balances on lines of credit.
- The company's portfolio includes 32 consolidated outlet centers and one open-air lifestyle center, with a total gross leasable area of approximately 12.7 million square feet, which were 97% occupied.
- The company also has partial ownership interests in 6 unconsolidated centers totaling approximately 2.1 million square feet.
Sentiment
Score: 6
Explanation: The document presents a mixed picture with positive revenue growth offset by increased expenses and decreased net income. The company's strong occupancy and strategic moves are positive, but the financial results are slightly worse than the previous year. The sentiment is neutral to slightly positive.
Positives
- Rental revenues saw a significant increase of $14.2 million compared to the same period last year.
- The company's portfolio maintains a high occupancy rate of 97% in consolidated centers.
- The company successfully increased its unsecured lines of credit borrowing capacity to $620 million.
- The company has a diverse portfolio of properties across the United States and Canada.
Negatives
- Net income decreased by $1.6 million compared to the first quarter of 2023.
- Depreciation and amortization costs increased by $8.0 million.
- Interest expense increased by $2.0 million due to new interest rate swaps and outstanding balances on lines of credit.
- General and administrative expenses increased by $2.1 million.
Risks
- The company is exposed to market risks, including changes in interest rates.
- The company's performance is dependent on the financial health of its tenants.
- The company is subject to risks related to macroeconomic conditions, including rising interest rates and inflation.
- The company's debt agreements require the maintenance of certain financial ratios, and failure to comply could result in a default.
- The company is exposed to foreign currency risk on investments in Canada.
Future Outlook
The company intends to continue to grow its portfolio by developing, expanding or acquiring additional outlet and retail real estate assets. The company believes it has access to the necessary financing to fund its short-term liquidity needs and anticipates adequate cash will be available to fund its operating and administrative expenses, regular debt service obligations, and the payment of dividends in accordance with REIT requirements in both the shortand long-term.
Management Comments
- Management believes that the company has access to the necessary financing to fund its short-term liquidity needs.
- Management believes that the company's current balance sheet position is financially sound.
Industry Context
The report reflects the ongoing challenges and opportunities in the retail real estate sector, including the impact of macroeconomic conditions, rising interest rates, and changing consumer preferences. The company's focus on outlet and open-air centers positions it to capitalize on evolving retail trends.
Comparison to Industry Standards
- The company's occupancy rate of 97% is strong compared to the average occupancy rates of other retail REITs, which can range from 90% to 95%.
- The company's debt-to-asset ratio of 39% is conservative compared to some other REITs, which can have ratios exceeding 50%.
- The company's FFO payout ratio is within the range of other REITs, indicating a balance between dividend payments and reinvestment in the business.
- The company's focus on outlet and open-air centers is a strategic move that aligns with current consumer preferences for value and convenience, which is a trend seen across the retail industry.
- The company's leasing activity, with a 13.6% rent spread on comparable space, indicates a strong ability to increase rents on renewals, which is a key metric for retail REITs.
Stakeholder Impact
- Shareholders will receive a $0.275 cash dividend per common share payable on May 15, 2024.
- Employees are subject to equity-based compensation plans.
- Tenants are impacted by the company's ability to maintain occupancy and attract shoppers.
- Creditors are impacted by the company's ability to comply with debt covenants.
Next Steps
- The company intends to continue to grow its portfolio through development, expansion, and acquisitions.
- The company will continue to monitor the impact of macroeconomic conditions on its business.
- The company will continue to evaluate acquisition or disposition proposals.
Legal Proceedings
- The Company and the Operating Partnership are, from time to time, engaged in a variety of legal proceedings arising in the normal course of business.
Key Dates
- 2011-12-31: Date of acquisition of Atlantic City Outlets Walk
- 2023-02-10: Date of 2020 Performance Share Plan (A2020PSP) grant
- 2023-05-31: End date of the previously authorized share repurchase program
- 2023-11-16: Date of legal name change from Tanger Factory Outlet Centers, Inc. to Tanger, Inc.
- 2024-01-31: Record date for the $0.26 cash dividend per common share
- 2024-02-15: Payment date for the $0.26 cash dividend per common share
- 2024-03-31: End of the first quarter of 2024
- 2024-04-12: Date of amendments to unsecured lines of credit
- 2024-04-30: Record date for the $0.275 cash dividend per common share
- 2024-05-15: Payment date for the $0.275 cash dividend per common share
- 2025-05-31: End date of the current share repurchase program
Keywords
outlet centers, real estate, REIT, rental revenue, occupancy, financial results, Tanger Inc., Tanger Properties Limited Partnership, retail centers, debt, interest rates
SKT
Tanger INC
NYSE
Sector: Real Estate
Filings with Classifications
Worse than expected
2 May 2025 9:08 AM
Quarterly Report
- Net income decreased from $23.3 million to $20.0 million due to an impairment charge.
Capital raise
2 May 2025 9:08 AM
Quarterly Report
- The company has an at-the-market stock offering (ATM Offering) program, which commenced in February 2021, and replaced with a new program in February 2025, under which it may offer and sell its common shares, $0.01 par value per share, having an aggregate gross sales price of up to $400 million.
- As of March 31, 2025, we had approximately $400.0 million of common shares remaining available for sale under the ATM Offering program.
Better than expected
28 March 2025 8:46 AM
Proxy Statement
- The company's total shareholder return outperformed retail REITs, the REIT industry, and the broad market.
- Core FFO increased to $2.13 per share, or $247 million, in 2024.
- Same Center NOI grew to $333.4 million in 2024.
- Net Debt to Adjusted EBITDAre improved to 4.8x.
Capital raise
24 February 2025 4:05 PM
8-K Filing
- Tanger Inc. is establishing an at-the-market offering program to issue and sell up to $400 million of its common shares.
- The company may sell shares through sales agents, directly to them as principals, or through forward stock purchase transactions.
- The net proceeds will be used for general corporate purposes, including property development, debt repayment, and working capital.
Capital raise
21 February 2025 4:25 PM
Annual Results
- During 2024, we sold 3.4 million common shares under our at-the-market stock offering (ATM Offering) program at a weighted average price of $34.34 per share, generating gross proceeds of $115.9 million.
- In addition, we issued 1.9 million forward shares for an estimated gross value of $69.7 million based on the initial forward sale price of $36.40 with respect to each forward sale agreement.
- Shares can be settled at any time over the next 12-15 months, unless otherwise extended.
- As of December 31, 2024, we have a remaining authorization of $34.5 million under the ATM Offering.
Capital raise
19 February 2025 4:06 PM
Earnings Release
- During the fourth quarter of 2024, the Company sold 2.6 million common shares under its at-the-market stock offering program (the ATM Offering Program) at a weighted average price of $35.57 per share generating gross proceeds of $90.9 million.
- For the full year period, the Company sold 3.4 million common shares generating $115.9 million.
- Additionally, during the fourth quarter of 2024, the Company entered into forward sale agreements for 1.9 million shares at a weighted average price of $36.40 per share with total gross proceeds of approximately $69.7 million, all of which remain unsettled and can be drawn down over time.
- As of December 31, 2024, the Company had $34.5 million of common shares remaining available for sale under the ATM Offering Program.
Better than expected
19 February 2025 4:06 PM
Earnings Release
- The company's FFO and Core FFO per share increased compared to the prior year period, indicating improved operating performance.
- The company's occupancy rate increased to 98.0% compared to 97.3% in the prior year, demonstrating strong demand for its properties.
- The company's Same Center NOI increased by 3.0% for the fourth quarter and 5.1% for the full year, indicating improved profitability from its existing properties.
Capital raise
7 November 2024 4:14 PM
Quarterly Report
- The company issued 818,943 common shares under its at-the-market offering program, generating $25 million in gross proceeds.
- The company has approximately $195.1 million of common shares remaining available for sale under the ATM Offering program.
- In October 2024, the company issued an additional 484,741 common shares under its ATM program at an average price of $33.38 per share, totaling approximately $16.2 million of gross proceeds.
Worse than expected
7 November 2024 4:14 PM
Quarterly Report
- Net income decreased by approximately $3 million compared to the same quarter last year, indicating a worse performance than the prior year.
Better than expected
6 November 2024 4:08 PM
Quarterly Report
- The company increased its full-year 2024 guidance for net income, FFO, and Core FFO per share, indicating better than expected performance.
- The company achieved its 11th consecutive quarter of positive leasing spreads, demonstrating better than expected rental growth.
- Net debt to Adjusted EBITDAre improved to 5.0x, indicating better than expected financial health.
Delay expected
6 November 2024 4:08 PM
Quarterly Report
- Tanger Outlets Asheville was temporarily closed due to a lack of utilities following Hurricane Helene, causing a delay in operations.
Capital raise
6 November 2024 4:08 PM
Quarterly Report
- The company sold 0.8 million common shares under its at-the-market stock offering (the ATM Offering) at a weighted average price of $30.53 per share, generating gross proceeds of $25.0 million during the three and nine months ended September 30, 2024.
- In October 2024, the Company sold an additional 0.5 million common shares at a weighted average price of $33.38 per share, totaling approximately $16.2 million of gross proceeds.
- As of October 31, 2024, the Company had $179.0 million of common shares remaining available for sale under the ATM Offering.
Capital raise
5 August 2024 8:02 AM
Quarterly Report
- The company has an at-the-market stock offering program with approximately $220.1 million of common shares remaining available for sale.
- The company may issue equity from time to time on an opportunistic basis, dependent upon market conditions and available pricing.
Better than expected
1 August 2024 4:06 PM
Quarterly Report
- The company's results exceeded expectations due to strong leasing activity and positive rent spreads.
- The company's increased full-year guidance indicates management's confidence in continued strong performance.
- The company's same center NOI growth of 8.0% was better than expected.
Worse than expected
1 May 2024 4:55 PM
Quarterly Report
- Net income decreased by $1.6 million compared to the first quarter of 2023, indicating a worse performance than the previous year.
Capital raise
1 May 2024 4:55 PM
Quarterly Report
- The company has an at-the-market stock offering program with approximately $220.1 million of common shares remaining available for sale.
- The company may issue equity from time to time on an opportunistic basis, dependent upon market conditions and available pricing.
Better than expected
30 April 2024 4:07 PM
Quarterly Report
- The company raised its full-year 2024 guidance for net income, FFO, and Core FFO per share.
- The company achieved a 5.2% increase in same center net operating income (NOI).
- The company increased its dividend by 5.8% to $1.10 per share annually.
Better than expected
15 April 2024 9:21 AM
Credit Agreement Amendment
- The increase in borrowing capacity, extended maturity, and improved pricing grid are all better than the previous terms.
Better than expected
4 April 2024 8:46 AM
Proxy Statement
- The company's 2023 performance highlights include net income available to common shareholders of $0.92 per share, Core FFO of $1.96 per share, and 97.3% occupancy for the consolidated portfolio, all of which are better than the previous year.
Capital raise
21 February 2024 4:08 PM
Annual Report
- During 2023, the company sold 3.5 million common shares under its at-the-market stock offering (ATM Offering) program at a weighted average price of $25.75 per share, generating gross proceeds of $90.0 million.
- As of December 31, 2023, the company has a remaining authorization of $220.1 million under the ATM Offering.
- The company is a well-known seasoned issuer with a shelf registration statement on Form S-3 that allows it to register unspecified amounts of different classes of securities.
Better than expected
15 February 2024 4:07 PM
Quarterly Report
- The company's net income, FFO, and Core FFO all increased year-over-year, indicating improved financial performance.
- Same center NOI growth of 5.4% for the quarter and 6.2% for the year exceeded expectations.
- The company achieved record leasing activity with over 2.3 million square feet of leases executed in 2023.
- Blended average rental rates increased by 13.3%, demonstrating strong demand for the company's properties.
Capital raise
15 February 2024 4:07 PM
Quarterly Report
- During the fourth quarter of 2023, Tanger sold 3.4 million common shares under its ATM equity offering program at a weighted average price of $25.77 per share, generating gross proceeds of $87.3 million.
- During 2023, the Company sold 3.5 million shares at a weighted average price of $25.75 per share, generating gross proceeds of $90.0 million.
- As of December 31, 2023, the Company has a remaining authorization of $220.1 million under its ATM equity offering program.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.