Tanger Sees Q4 Gains Across Several Metrics
Tanger, fueled by its ongoing strategy of tenant diversification, acquisitions and “robust” leasing activity, reported a strong fourth quarter and positive outlook for 2025.
For the fourth quarter ended Dec. 31, net income available to common shareholders was 23 cents per share, or $26.3 million, compared to 22 cents per share, or $23.5 million, for the prior-year period.
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Funds from operations available to common shareholders was 54 cents per share, or $63.3 million, compared to 52 cents per share, or $58.2 million, for the prior-year period.
Core funds from operations was 54 cents per share, or $63.3 million, compared to 52 cents per share, or $58.2 million, for the prior-year period.
Wall Street was pleased with the results and on Thursday pushed Tanger’s stock price up nearly 4 percent to $35.93.
“The fourth quarter was a good one. Sales and traffic numbers were both up. Despite the five fewer shopping days during holiday season, we still saw increases in December,” Stephen Yalof, president and chief executive officer, told WWD.
Going forward, “Retailers are very optimistic, and the open-to-buys are still intact,” Yalof added.
Tanger has its own open-to-buy, so to speak, to extend its real estate portfolio beyond outlet centers and invest in full-price, open-air retail centers that the company considers dominant in a market. Earlier this month Tanger acquired Pinecrest, a 640,000-square-foot, open-air, mixed-use center in Orange Village, Ohio, for $167 million. Last December, Tanger bought The Promenade at Chenal in Little Rock, Ark., a 270,000-square-foot upscale, open-air lifestyle shopping center for $73 million. And in December 2023, Tanger acquired Bridge Street Town Centre, an 825,000‑square-foot, open-air lifestyle center in Huntsville, Ala., for $193.5 million.
Asked if he sees additional property deals this year, Yalof replied: “We’re looking at open-air retail centers where we believe our leasing, marketing and operations abilities can create long-term value in these centers. We are very much in the game right now. We are looking at a number of different opportunities but we will be very disciplined on how we execute.”
Tanger’s portfolio currently consists of 38 outlet centers, one adjacent managed center, and three open-air lifestyle centers, representing over 16 million square feet in 21 states and Canada, much of which is in tourist destinations.
Yalof said the company “pivoted” five years ago by starting to fill vacancies with better food and beverage establishments, entertainment features and new amenities. “We built that muscle over time,” he said. “Diversifying the uses in our shopping centers translated to this new asset class for us.
“We look at assets and say how much more value can we create, with leasing and operating them better, and creating additional revenue streams,” Yalof said. “We can really add value to the center and create value for our company over time.”
Regarding the categories expected to increase their presence within Tanger properties, “Beauty brands are growing. Athletic fitness brands are growing. Some home stores are looking for new locations,” Yalof said.
He also expressed hope that the Stuart Weitzman footwear brand, which just signed an agreement to be sold to Caleres, would choose to open outlets at Tanger properties. “Caleres has great market share and the ability to really scale,” Yalof said. Caleres’ portfolio of footwear brands includes Famous Footwear, Sam Edelman, Allen Edmonds, Naturalizer, Vionic, and Dr. Scholl’s Shoes. Caleres does have outlets at Tanger properties.
In other Tanger results, occupancy was 98 percent as of Dec. 31, compared to 97.4 percent on Sept. 30, 2024, and 97.3 percent on Dec. 31, 2023.
Same-center net operating income increased 3 percent to $93.8 million for the fourth quarter of 2024 from $91 million in the year-ago period.
Average tenant sales per square foot was $444 for the 12 months ended Dec. 31, compared to $438 for the 12 ended Sept. 30, 2024, and $436 for the 12 months ended Dec. 31, 2023.
For the year, net income available to common shareholders was 88 cents per share, or $97.7 million, compared to 92 cents per share, or $98.0 million, for the prior-year period.
Funds from operations 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 funds from operations available to common shareholders was $2.13 per share, or $247 million, compared to $1.96 per share, or $217.6 million, for the prior-year period.
For 2025, the company projects diluted net income per share of 94 cents to $1.02
In his prepared statement, Yalof said, “Leasing momentum remains strong as we continue to add new retailers, brands, and uses to our centers, enhancing the shopping environment for our customers. Our balance sheet provides the liquidity and flexibility to execute our business plan and unlock additional value for our stakeholders.”
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