SKT
Tanger INC
NYSE
10-Q: Tanger Inc. and Tanger Properties Limited Partnership Report Second Quarter 2024 Results
Sentiment:
Quarterly Report
5 August 2024 8:02 AM
Tanger Inc. and Tanger Properties Limited Partnership have released their combined unaudited quarterly report for the period ended June 30, 2024, detailing financial performance and operational activities.
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 combined unaudited quarterly report for the period ended June 30, 2024.
- The company owns and operates 31 consolidated outlet centers and one open-air lifestyle center, totaling approximately 12.7 million square feet.
- The portfolio also includes partial ownership in 6 unconsolidated centers totaling approximately 2.1 million square feet and two managed centers totaling approximately 760,000 square feet.
- As of June 30, 2024, the consolidated centers were 97% occupied and contained over 2,500 stores representing approximately 660 store brands.
- Net income for the quarter was $25.9 million, compared to $25.3 million for the same period last year.
- Rental revenues increased to $122.3 million from $104.6 million in the prior year's quarter.
- The company's total assets were $2.29 billion as of June 30, 2024.
- The company has $1.46 billion in total debt.
- The company declared a $0.275 cash dividend per common share payable on August 15, 2024.
Sentiment
Score: 7
Explanation: The sentiment is moderately positive. While there are some challenges, such as increased expenses and interest rates, the company shows strong occupancy rates, increased rental revenue, and a commitment to growth. The company is also compliant with all debt covenants.
Positives
- Rental revenues increased due to a strengthened tenant mix and higher new and renewal rental rates.
- The company's occupancy rate remains high at 97% for consolidated centers.
- The company successfully increased its unsecured lines of credit borrowing capacity to $620 million.
- The company declared a cash dividend of $0.275 per share.
Negatives
- Interest expense increased due to newly effective variable interest rate swaps.
- General and administrative expenses increased due to higher information technology costs and other professional fees.
- Other income decreased due to lower cash balances compared to the prior year.
Risks
- The company is exposed to risks related to pandemics, supply chain and labor issues, and rising interest rates.
- The company's ability to raise additional capital is subject to market conditions.
- The company's results of operations and financial condition are subject to the economic performance and market value of its retail centers.
- The company is dependent on rental income from real property and the results of operations of its retailers.
- The company is exposed to risks associated with debt financing and its guarantees of debt for joint venture properties.
- The company's compliance with debt covenants is subject to various factors and could be impacted by current or future economic conditions.
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 planned capital expenditures for at least the next twelve months.
Management Comments
- Management believes that the final outcome of legal proceedings will not have a material adverse effect on the company's results of operations or financial condition.
- Management believes that the company has access to the necessary financing to fund its short-term liquidity needs.
Industry Context
The report reflects the company's performance in the retail real estate sector, specifically outlet and open-air shopping centers, amid ongoing economic and market challenges. The company's focus on maintaining high occupancy rates and managing debt is consistent with industry trends.
Comparison to Industry Standards
- Tanger's occupancy rate of 97% is strong compared to the national average for retail properties, which has been fluctuating due to economic conditions.
- The company's focus on maintaining a conservative leverage position is in line with best practices for REITs.
- The company's FFO and Core FFO metrics are used by analysts and investors to evaluate REIT performance, and Tanger's results are within expected ranges for the sector.
- The company's debt service coverage ratio of 5.7x is well above the required 1.5x, indicating a strong ability to meet debt obligations.
Stakeholder Impact
- Shareholders will receive a cash dividend of $0.275 per share.
- Tenants may be affected by the macroeconomic environment and consumer shopping trends.
- Employees may be affected by changes in the company's operations and financial performance.
- Creditors are impacted by the company's debt levels and compliance with debt covenants.
Next Steps
- The company will continue to monitor the impact of the macroeconomic environment on its business.
- The company will continue to evaluate acquisition or disposition proposals.
- The company will continue to pursue attractive investment opportunities.
- The company will continue to manage its capital structure to reflect a long-term investment approach.
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
- 2023-01-01: Start of periods for comparative financial data.
- 2023-02-01: Start of period for 2020 Performance Share Plan relative portion.
- 2023-02-10: Date of 2020 Performance Share Plan.
- 2023-02-28: End of period for 2020 Performance Share Plan relative portion.
- 2023-03-01: Start of period for Restricted Common Share Award Plan.
- 2023-03-31: End of first quarter 2023.
- 2023-04-01: Start of second quarter 2023.
- 2023-06-30: End of second quarter 2023.
- 2023-07-01: Start of third quarter 2023.
- 2023-12-31: End of fiscal year 2023.
- 2024-01-01: Start of fiscal year 2024.
- 2024-02-01: Effective date of new interest rate swaps.
- 2024-03-31: End of first quarter 2024.
- 2024-04-01: Start of second quarter 2024.
- 2024-04-12: Date of amendments to unsecured lines of credit.
- 2024-06-30: End of second quarter 2024.
- 2024-07-31: Date for shareholder record for dividend payment.
Keywords
REIT, outlet centers, retail real estate, rental revenue, occupancy rate, financial results, debt, dividends, interest rate swaps, capital expenditures
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.
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.
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.
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.
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.
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.
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.