NYSE$SKT

Tanger Factory Outlet Centers Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Tanger reported strong first quarter results, driven by positive blended rent spreads and increased occupancy. The company increased full-year guidance.

Tanger Factory Outlet Centers reported a net income of $0.22 per share, or $23.3 million, for the first quarter of 2023, compared to $0.19 per share, or $20.3 million, for the prior year period. Occupancy was 96.5% on March 31, 2023, compared to 94.3% on March 31, 2022. Blended average rental rates increased 13.8% on a cash basis. The company increased its full-year 2023 guidance.

  • Net income available to common shareholders was $0.22 per share, or $23.3 million, compared to $0.19 per share, or $20.3 million, for the prior year period.
  • Occupancy was 96.5% on March 31, 2023, compared to 94.3% on March 31, 2022.
  • Same center net operating income increased 7.4% to $83.6 million for the first quarter of 2023 from $77.8 million for the first quarter of 2022.
  • Blended average rental rates improved for the eighth consecutive quarter, increasing 13.8% on a cash basis.

Headline financials

Total Revenue

$109M

Previous: $109M+0.1%
EPS (adj)

$0.46

Previous: $0.45+2.2%
Portfolio Occupancy

96.5%

Previous: 94.3%+2.3%
Capital Expenditures

-$25.9M

Previous: -$5.87M-342.1%
Free Cash Flow

-$2.4M

Previous: $14.7M-116.4%
Net Income

$23.5M

Previous: $20.5M+14.7%
Operating Income

$32.5M

Previous: $30.4M+6.8%
Gross Profit

$75.8M

Previous: $72.1M+5.1%
Cash & Equivalents

$203M

Previous: $153M+32.7%
Total Assets

$2.19B

Previous: $2.13B+2.4%
Stock-Based Comp

$2.27M

Previous: $2.71M-16.1%

Revenue & EPS history

Tanger · Revenue · Quarterly

$109M

Q1 2023+0.1%vs Q1 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Tanger · $109M total across 3 segments · Q1 2023

  • Rental Revenue
    $104M-1.0%
  • Other Revenue
    $3.45M+26.2%
  • Management and Leasing
    $1.91M+25.3%

Forward guidance

Based on the Company’s results to date and its outlook for the remainder of 2023, management is increasing its full-year 2023 guidance with its current expectations for net income, FFO and Core FFO per share for 2023.

Tailwinds

  • Estimated diluted net income per share between $0.89 and $0.97
  • Depreciation and amortization of real estate assets - consolidated and the Company’s share of unconsolidated joint ventures of 0.94
  • Estimated diluted FFO per share between $1.83 and $1.91
  • Reversal of previously expensed compensation related to executive departure of (0.01)
  • Estimated diluted Core FFO per share between $1.82 and $1.90

Headwinds

  • Same Center NOI growth - total portfolio at pro rata share between 2.75% and 4.75%
  • General and administrative expense, excluding executive departure adjustments between $73 million and $76 million
  • Interest expense between $47 million and $49 million
  • Other income (expense) between $5 million and $7 million
  • Annual recurring capital expenditures, renovations and second generation tenant allowances between $50 million and $60 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.2%

Avg return

Earnings day

+2.1%

Avg return

5 days after

+1.0%

Avg return

30 days after

47%

30 / 64 earnings

Positive

+21.7%

Q3 2021

Best reaction

-13.5%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.5%-0.6%-2.8%
Q4 2025+4.3%+4.4%-5.1%
Q3 2025+0.3%+1.8%-4.7%
Q1 2025-5.0%-5.8%-5.4%
Q4 2024+3.9%+3.7%-7.8%
Q3 2024+5.9%+7.8%+8.4%
Q2 2024-3.2%-5.5%+5.3%
Q1 2024-4.1%-4.0%-4.2%
Q4 2023+6.9%+7.6%+5.8%
Q3 2023+2.9%+2.8%+11.3%
Q2 2023+3.7%+7.0%-1.2%
Q1 2023+7.5%+5.6%+10.8%
Q4 2022+0.3%+1.4%+0.1%
Q3 2022+1.7%+2.1%+5.7%
Q2 2022+1.6%+11.7%-3.7%
Q1 2022-0.4%+5.1%-1.9%
Q4 2021-4.1%-3.9%-1.7%
Q3 2021+21.7%+27.1%+16.0%
Q2 2021-3.1%+2.4%+2.2%
Q1 2021-0.4%+1.1%+10.3%
Q4 2020+2.4%+11.7%+19.4%
Q3 2020+11.7%+38.3%+67.7%
Q2 2020-7.5%-1.5%-10.1%
Q1 2020-13.5%-12.5%+22.8%
Q4 2019-3.7%-5.8%-22.3%
Q3 2019-5.0%+0.1%-10.3%
Q2 2019-5.6%-5.3%-13.5%
Q1 2019+1.4%-1.2%-7.1%
Q4 2018-2.4%-2.7%-9.7%
Q3 2018+4.0%+3.5%+6.2%
Q2 2018+2.5%+2.8%+1.8%
Q1 2018-7.2%-5.4%-2.1%
Q4 2017-6.3%-3.1%-7.2%
Q3 2017+2.4%+9.4%+10.2%
Q2 2017-1.7%+0.2%-11.5%
Q1 2017-4.5%-8.2%-16.4%
Q4 2016-3.0%-2.3%-6.2%
Q3 2016-4.2%-7.0%-6.6%
Q2 2016-1.5%+0.7%-2.3%
Q1 2016-0.3%
Q4 2015-3.9%
Q3 2015+0.3%
Q2 2015-0.2%
Q1 2015-0.3%
Q4 2014-3.1%
Q3 2014+1.2%
Q2 2014-1.0%
Q1 2014+0.0%
Q4 2013+1.9%
Q3 2013-0.1%
Q2 2013-2.0%
Q1 2013-0.2%
Q4 2012+0.6%
Q3 2012-1.0%
Q2 2012-1.3%
Q1 2012+1.1%
Q4 2011+2.0%
Q3 2011+0.7%
Q2 2011+11.7%
Q1 2011+0.6%
Q4 2010-0.6%
Q3 2010+3.2%
Q2 2010+1.0%
Q1 2010+5.9%

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