SKT
Tanger INC
NYSE
10-Q: Tanger Inc. and Tanger Properties Limited Partnership Report Third Quarter 2024 Results
Sentiment:
Quarterly Report
7 November 2024 4:14 PM
Tanger Inc. and Tanger Properties Limited Partnership release their combined quarterly report for the period ended September 30, 2024, detailing financial performance and operational updates.
Worse than expected
Net income decreased by approximately $3 million compared to the same quarter last year, indicating a worse performance than the prior year.
Capital raise
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.
Summary
- Tanger Inc. and Tanger Properties Limited Partnership have released their combined quarterly report for the period ending September 30, 2024.
- The company owns and operates 31 outlet centers and one open-air lifestyle center, totaling approximately 12.7 million square feet, with a 97% occupancy rate.
- They also have partial ownership in 6 unconsolidated centers, totaling 2.1 million square feet, and manage two additional centers.
- Rental revenues increased to $125.2 million for the quarter, up from $110.8 million in the same period last year.
- Net income for the quarter was $25.9 million, compared to $28.9 million in the prior year.
- The company's total assets were valued at $2.275 billion, with total liabilities of $1.683 billion.
- The company issued 818,943 common shares under its at-the-market offering program, generating $25 million in gross proceeds.
- The company declared a $0.275 cash dividend per common share for the quarter.
Sentiment
Score: 6
Explanation: The report shows mixed results with strong revenue growth but a decrease in net income and increased expenses. The company is navigating a challenging economic environment, but its operational performance remains solid.
Positives
- The company experienced a significant increase in rental revenues, driven by a stronger tenant mix and higher rental rates.
- The company successfully issued common shares under its ATM program, raising additional capital.
- The company maintained a high occupancy rate of 97% across its consolidated properties.
- The company continues to generate revenue from management, leasing and other services.
- The company is in compliance with all debt covenants.
Negatives
- Net income decreased by approximately $3 million compared to the same quarter last year.
- Interest expenses increased due to newly effective interest rate swaps.
- Other income decreased due to lower cash balances compared to the prior year.
- Depreciation and amortization costs increased significantly due to new developments and acquired properties.
Risks
- The company is exposed to market risks, including changes in interest rates and foreign currency fluctuations.
- The company's performance is dependent on the financial health of its tenants and their ability to pay rent.
- The company's debt agreements require the maintenance of certain financial ratios, and failure to comply could result in a default.
- The company's future performance is subject to macroeconomic conditions, including rising interest rates and inflation.
- The company's ability to access capital on favorable terms could be affected by various risks and uncertainties.
Future Outlook
The company intends to continue to grow its portfolio by developing, expanding or acquiring additional outlet and retail real estate assets, and believes it has access to the necessary financing to fund its short-term liquidity needs.
Management Comments
- Management believes that the company has access to the necessary financing to fund its short-term liquidity needs.
- Management believes that retail real estate will continue to be a profitable and fundamental distribution channel for many brands and retailers.
Industry Context
The report reflects the company's performance in the retail real estate sector, highlighting its ability to maintain high occupancy rates and increase rental revenues despite macroeconomic challenges.
Comparison to Industry Standards
- Tanger's occupancy rate of 97% is strong compared to the average occupancy rates of other retail REITs, which can vary but are often in the low to mid 90s.
- The company's focus on outlet and open-air centers positions it well in the current retail landscape, where these formats are generally performing better than enclosed malls.
- The company's debt-to-asset ratio of 37% is conservative compared to some other REITs, which may have higher leverage.
- The company's FFO payout ratio is a key metric for comparison with other REITs, and the report provides the necessary data for this analysis.
- The company's same-store NOI growth is a key indicator of operational performance, and the report provides this metric for comparison with peers.
Stakeholder Impact
- Shareholders will receive a $0.275 cash dividend per common share.
- Tenants may be affected by macroeconomic conditions and consumer spending habits.
- Employees may be affected by changes in the company's financial performance and strategic direction.
- 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 macroeconomic environment and its impact on the business.
- The company will continue to evaluate acquisition or disposition proposals.
- 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 the period for comparative financial data.
- 2023-09-30: End of the comparative period for financial data.
- 2023-12-31: End of the fiscal year for comparative balance sheet data.
- 2024-09-30: End of the current reporting period.
- 2024-11-01: Date of outstanding common shares count.
- 2024-11-07: Date of report filing.
Keywords
REIT, outlet centers, retail, real estate, occupancy, rental revenue, debt, dividends, financial results, leasing
SKT
Tanger INC
NYSE
Sector: Real Estate
Filings with Classifications
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.
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.
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.
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.
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.
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.
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.