On August 1, 2024, Tanger Inc (SKT, Financial) released its 8-K filing detailing its financial results for the second quarter ended June 30, 2024. Tanger Inc is a leading owner and operator of outlet and open-air retail shopping destinations, with a portfolio comprising 38 outlet centers and one open-air lifestyle center across the U.S. and Canada.
Performance Overview
Tanger Inc reported net income available to common shareholders of $0.22 per share, or $24.6 million, slightly down from $0.23 per share, or $23.9 million, in the same period last year. However, the company’s Funds From Operations (FFO) available to common shareholders increased to $0.53 per share, or $60.9 million, from $0.47 per share, or $52.4 million, in the prior year period. Core FFO also rose to $0.53 per share from $0.47 per share.
Key Financial Achievements
For the second quarter, Tanger Inc reported total revenues of $128.96 million, up from $110.64 million in the same period last year. This increase was driven by higher rental revenues, which rose to $122.32 million from $104.59 million. The company’s Same Center Net Operating Income (NOI) increased by 8.0% to $89.6 million, reflecting higher rental revenues from increased base rent and expense recoveries.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Income per Share | $0.22 | $0.23 |
| FFO per Share | $0.53 | $0.47 |
| Total Revenues | $128.96 million | $110.64 million |
| Rental Revenues | $122.32 million | $104.59 million |
Balance Sheet and Liquidity
As of June 30, 2024, Tanger Inc reported cash and cash equivalents of $20.2 million and $585.0 million of availability on its $620.0 million unsecured lines of credit. The company’s net debt to Adjusted EBITDAre improved to 5.4x from 5.8x at the end of 2023. The interest coverage ratio was 4.5x for the first half of 2024.
Operational Metrics
Tanger Inc’s occupancy rate remained stable at 96.5% as of June 30, 2024. The average tenant sales per square foot was $439, slightly up from $437 in the previous quarter. The occupancy cost ratio was 9.4%, compared to 9.3% in the prior quarter.
Leasing Activity
The company executed 457 leases totaling 2.0 million square feet over the past twelve months, with a blended average rental rate increase of 15.1% for comparable space. This marks the tenth consecutive quarter of positive leasing spreads.
Dividend
In July 2024, Tanger Inc’s Board of Directors authorized a quarterly cash dividend of $0.275 per share, payable on August 15, 2024, to holders of record on July 31, 2024.
Guidance for 2024
Based on its performance to date, Tanger Inc has raised its full-year 2024 guidance. The company now expects net income per share to range between $0.85 and $0.92, and FFO per share to range between $2.04 and $2.11.
“I am pleased to announce another quarter of strong performance and an increase in our full-year guidance,” said Stephen Yalof, President and Chief Executive Officer. “Our team continues to execute on our strategic plan, which is translating into total rent growth including the tenth consecutive quarter of positive leasing spreads.”
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Tanger Inc for further details.
