SKT
Tanger INC
NYSE
8-K: Tanger Reports Strong Q4 and Full Year 2024 Results, Issues Positive 2025 Guidance
Sentiment:
Earnings Release
19 February 2025 4:06 PM
Tanger announces robust fourth quarter and full year 2024 results, driven by improved sales productivity and strategic acquisitions, while also introducing optimistic guidance for 2025.
Better than expected
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
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.
Summary
- Tanger reported net income available to common shareholders of $0.23 per share, or $26.3 million, for the fourth quarter of 2024, compared to $0.22 per share, or $23.5 million, for the prior year period.
- Funds From Operations (FFO) available to common shareholders was $0.54 per share, or $63.3 million, compared to $0.52 per share, or $58.2 million, for the prior year period.
- Core Funds From Operations (Core FFO) available to common shareholders was $0.54 per share, or $63.3 million, compared to $0.52 per share, or $58.2 million, for the prior year period.
- For the full year, net income available to common shareholders was $0.88 per share, or $97.7 million, compared to $0.92 per share, or $98.0 million, for the prior year period.
- FFO available to common shareholders was $2.12 per share, or $245.4 million, compared to $1.96 per share, or $218.4 million, for the prior year period.
- Core FFO available to common shareholders was $2.13 per share, or $247.0 million, compared to $1.96 per share, or $217.6 million, for the prior period.
- Occupancy was 98.0% on December 31, 2024, compared to 97.3% on December 31, 2023.
- Same center net operating income (Same Center NOI) increased 3.0% to $93.8 million for the fourth quarter of 2024 and increased 5.1% to $363.0 million for the full year of 2024.
- Average tenant sales per square foot was $444 for the twelve months ended December 31, 2024.
- Blended average rental rates were positive for the 12th consecutive quarter at 15.0% on a cash basis for leases executed for comparable space during the twelve months ended December 31, 2024.
- The company acquired The Promenade at Chenal in Little Rock, Arkansas, in December for $73.1 million and Pinecrest in Cleveland, Ohio, post-year-end for $167.0 million.
- Net debt to Adjusted EBITDAre was 4.8x for the twelve months ended December 31, 2024, and is estimated to be in the range of 4.9x to 5.0x after accounting for recent acquisitions.
- The company's Board of Directors authorized a quarterly cash dividend of $0.275 per share in January 2025.
- The company estimates diluted net income per share for 2025 to be between $0.94 and $1.02, and estimated diluted FFO per share to be between $2.22 and $2.30.
- Same Center NOI growth is projected to be between 2.0% and 4.0% for 2025.
Sentiment
Score: 8
Explanation: The document presents a positive outlook with strong financial results, strategic acquisitions, and optimistic guidance for the future. The company's key metrics, such as occupancy, NOI, and FFO, show improvement, contributing to a favorable sentiment.
Positives
- Occupancy increased to 98.0% at the end of 2024.
- Same Center NOI saw a significant increase of 3.0% in Q4 and 5.1% for the full year.
- Average tenant sales per square foot improved to $444 for the year.
- Blended average rental rates increased by 15.0% for comparable space leases.
- The company successfully acquired The Promenade at Chenal and Pinecrest, expanding its portfolio.
- The company authorized a quarterly cash dividend of $0.275 per share.
- The company provided positive guidance for 2025, projecting increased net income and FFO per share.
- Net debt to Adjusted EBITDAre decreased from 5.8x to 4.8x year over year.
Negatives
- Net income available to common shareholders decreased slightly from $0.92 to $0.88 year over year.
Risks
- The estimates for 2025 do not include the impact of any additional acquisition or sale of any outparcels, properties or joint venture interests, or any additional financing activity.
- The document contains a safe harbor statement identifying numerous risks and uncertainties that could materially affect actual results.
Future Outlook
Management expects 2025 diluted net income per share to be between $0.94 and $1.02 and diluted FFO per share to be between $2.22 and $2.30, with Same Center NOI growth between 2.0% and 4.0%.
Management Comments
- 'I am pleased to report another quarter of strong performance contributing to a successful year as we saw improved sales productivity and delivered robust organic growth,' said Stephen Yalof, President and Chief Executive Officer.
- Mr. Yalof stated that leasing momentum remains strong and the balance sheet provides the liquidity and flexibility to execute the business plan and unlock additional value for stakeholders.
Industry Context
Tanger's focus on outlet and open-air retail shopping destinations aligns with the trend of consumers seeking value and experiences. The acquisition of open-air centers like The Promenade at Chenal and Pinecrest reflects a strategic move to diversify and enhance the shopping experience.
Comparison to Industry Standards
- Simon Property Group (SPG), a leading REIT, reported occupancy rates around 99% for its premium outlets, slightly higher than Tanger's 98%.
- Macerich (MAC), another major REIT, focuses on high-quality regional malls and reported average tenant sales per square foot of $860, significantly higher than Tanger's $444, reflecting different property types and target markets.
- Taubman Centers, acquired by SPG, also operates premium outlets, making SPG a direct competitor to Tanger in the outlet space.
- Comparing Tanger's Net Debt to Adjusted EBITDAre of 4.8x to industry peers, it is within a reasonable range for REITs, indicating a manageable leverage level.
Stakeholder Impact
- Shareholders will benefit from the increased dividend and potential for future growth.
- Tenants will benefit from the enhanced shopping environment and marketing efforts.
- Employees will benefit from the company's continued success and expansion.
Next Steps
- The company will host a conference call on February 20, 2025, to discuss the results.
- The company is scheduled to participate in several upcoming industry conferences and events.
Key Dates
- 1993: Tanger became a publicly traded REIT.
- December 10, 2024: The Company completed the acquisition of The Promenade at Chenal.
- December 31, 2024: End of the reporting period for the financial results.
- January 2025: The Company's Board of Directors authorized a quarterly cash dividend of $0.275 per share.
- January 31, 2025: Company had renewals executed or in process for 34.9% of the space scheduled to expire during 2025.
- February 12, 2025: The Company completed the acquisition of Pinecrest.
- February 14, 2025: Payment date for the quarterly cash dividend of $0.275 per share.
- February 19, 2025: Date of the earnings release.
- February 20, 2025: Tanger will host a conference call to discuss its fourth quarter and full year 2024 results.
- March 6, 2025: End date for the telephone replay and online archive of the conference call.
Keywords
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.
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
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.
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.
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.
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.