On April 30, 2024, Tanger Inc (SKT, Financial), a prominent player in the retail real estate sector, disclosed its financial results for the first quarter ended March 31, 2024. The company, known for its ownership and operation of outlet and open-air retail shopping destinations, has released its 8-K filing, providing a comprehensive view of its performance and strategic initiatives during the period.
Company Overview
Tanger Inc operates a vast portfolio of 38 outlet centers and one open-air lifestyle center, spanning over 15 million square feet across key tourist destinations and vibrant markets in the United States and Canada. This strategic positioning has enabled Tanger to attract a significant number of shoppers and maintain robust occupancy rates.
Financial Performance
The company reported net income available to common shareholders of $22.2 million, or $0.20 per share, a slight decrease from $23.3 million, or $0.22 per share, in the previous year. Despite this, Tanger saw an increase in Funds From Operations (FFO), reaching $58.6 million, or $0.51 per share, up from $52.0 million, or $0.47 per share, year-over-year. Core FFO also improved, amounting to $60.1 million, or $0.52 per share, compared to $51.2 million, or $0.46 per share, in the prior year.
Operational Highlights
Tanger's operational metrics remained strong with a portfolio occupancy rate of 96.5% as of March 31, 2024. The company achieved a 5.2% increase in Same Center Net Operating Income (NOI), driven by higher rental revenues and effective cost management. Notably, Tanger marked its ninth consecutive quarter of positive rent spreads, indicating a robust leasing environment.
Strategic Developments
During the quarter, Tanger enhanced its financial flexibility by increasing the capacity and extending the term of its unsecured lines of credit. This strategic move not only improves the company's liquidity position but also supports its long-term growth initiatives. Additionally, Tanger's Board of Directors approved a 5.8% increase in the dividend for common shares, reflecting confidence in the company's financial stability and commitment to delivering shareholder value.
Balance Sheet and Liquidity
As of March 31, 2024, Tanger maintained a solid balance sheet with total assets of $2.3 billion. The company's net debt to Adjusted EBITDAre ratio improved to 5.7x, demonstrating effective debt management and operational efficiency. Cash and cash equivalents stood at $23.0 million, with additional liquidity available through expanded credit facilities.
Guidance and Outlook
Encouraged by its strong performance in the first quarter, Tanger has raised its full-year guidance for 2024. The company now expects net income per share to range between $0.84 and $0.92 and Core FFO per share between $2.03 and $2.11. This outlook is supported by anticipated growth in Same Center NOI and continued operational excellence.
Conclusion
Tanger Inc's first quarter results demonstrate a resilient business model and effective strategic management. With a focus on enhancing its property portfolio and strengthening its financial position, Tanger is well-positioned to capitalize on growth opportunities and deliver sustained value to its stakeholders.
For further details, please refer to the full 8-K filing on the SEC's website.
Explore the complete 8-K earnings release (here) from Tanger Inc for further details.
