On November 6, 2023, Tanger Factory Outlet Centers Inc (SKT, Financial), a leading owner and operator of upscale open-air outlet centers, reported financial results and operating metrics for the three and nine months ended September 30, 2023. The company reported strong results, with net income available to common shareholders of $0.26 per share, or $27.2 million, compared to $0.22 per share, or $23.0 million, for the prior year period. The company's FFO available to common shareholders was $0.50 per share, or $55.8 million, compared to $0.47 per share, or $51.7 million, for the prior year period.
Financial Performance
For the year-to-date results, net income available to common shareholders was $0.70 per share, or $74.5 million, compared to $0.60 per share, or $63.0 million, for the prior year period. FFO available to common shareholders was $1.45 per share, or $160.2 million, compared to $1.37 per share, or $149.9 million, for the prior year period. Core FFO available to common shareholders was $1.44 per share, or $159.4 million, compared to $1.37 per share, or $149.9 million, for the prior year period.
Operating Metrics
Key portfolio results for the total portfolio, including the Company’s pro rata share of unconsolidated joint ventures, showed that occupancy was 98.0% on September 30, 2023, compared to 97.2% on June 30, 2023 and 96.5% on September 30, 2022. Same Center NOI, which is presented on a cash basis, increased 7.6% to $87.9 million for the third quarter of 2023 from $81.7 million for the third quarter of 2022.
Transaction Activity and Leasing Activity
Tanger Outlets Nashville, the Company’s newest development, opened on October 27, 2023 and is 96.5% leased. The center is approximately 291,000 square feet and is estimated to cost between $144 million and $146 million with a projected stabilized yield range of 7.5% to 8.0%. As of September 30, 2023, Tanger has renewals executed or in process for 88.0% of the space scheduled to expire during 2023 compared to 75.6% of expiring 2022 space as of September 30, 2022.
Balance Sheet and Liquidity
As of September 30, 2023, net debt to Adjusted EBITDAre remained stable at 5.2x for the twelve months ended September 30, 2023 from 5.1x for the year ended December 31, 2022. Cash and cash equivalents and short-term investments totaled $206.8 million with full availability on the Company’s $520 million unsecured lines of credit.
Guidance for 2023
Based on the Company’s better-than-anticipated performance in the third quarter and its outlook for the remainder of 2023, management is increasing its full-year 2023 guidance. The revised estimated diluted net income per share is between $0.93 and $0.97, and the estimated diluted FFO per share is between $1.91 and $1.95.
Explore the complete 8-K earnings release (here) from Tanger Factory Outlet Centers Inc for further details.
