NYSE$SKT

Tanger Factory Outlet Centers Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported financial results for the second quarter of 2021, raised guidance, and exceeded 2019 traffic and tenant sales.

Tanger Factory Outlet Centers reported strong second-quarter results, with traffic to domestic open-air centers surpassing 2019 levels and tenant sales increasing. The company raised its full-year guidance due to better-than-expected operating performance.

  • Net income available to common shareholders was $0.02 per share, or $2.3 million.
  • Funds From Operations (FFO) available to common shareholders was $0.30 per share, or $32.4 million.
  • Core Funds From Operations (Core FFO) available to common shareholders was $0.43 per share, or $46.3 million.
  • Consolidated portfolio occupancy rate was 93.0% on June 30, 2021.

Headline financials

Total Revenue

$101M

Previous: $64M+58.3%
EPS (adj)

$0.43

Previous: $0.10+330.0%
Portfolio Occupancy

93.0%

Previous: 93.8%-0.9%
Net Income

$2.6M

Previous: -$23.9M+110.9%
Operating Income

-$132K

Previous: -$20.9M+99.4%
Gross Profit

$70M

No prior period
Cash & Equivalents

$108M

No prior period
Stock-Based Comp

$2.76M

No prior period

Revenue & EPS history

Tanger · Revenue · Quarterly

$101M

Q2 2021+58.3%vs Q2 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Tanger · $101M total across 3 segments · Q2 2021

  • Rental Revenue
    $96.8M+55.5%
  • Other Revenue
    $3.09M+211.5%
  • Management and Leasing
    $1.36M+87.4%

Forward guidance

Driven by strong traffic and sales during the first half of 2021, the results of Tanger’s business operations exceeded expectations and drove higher variable rents and other revenues, resulting in an increase in the Company’s 2021 full-year guidance.

Tailwinds

  • Estimated diluted net income per share between $0.20 and $0.27
  • Estimated diluted FFO per share between $1.36 and $1.43
  • Estimated diluted Core FFO per share between $1.52 and $1.59
  • Decrease in lease termination fees, to approximately $2 million to $3 million, from $12 million in 2020
  • Combined annual recurring capital expenditures and second generation tenant allowances of approximately $25 million to $30 million

Headwinds

  • A $9 million to $10 million, or $0.08 to $0.09 per share, decrease in lease termination fees
  • Additional lease adjustments and the recapture of up to 200,000 square feet related to recent tenant bankruptcy filings and restructuring announcements, including 135,000 square feet recaptured through the end of July
  • No further domestic government-mandated retail shutdowns or store capacity limitations
  • General and administrative expense of between $59 million and $62 million, including $2.4 million of compensation related to a voluntary retirement plan and other executive severance incurred during the first quarter
  • Approximately $0.06 of net dilution related to the 10.0 million common shares issued under the Company’s ATM program, including $0.02 for the 3.1 million common shares issued during the second quarter of 2021

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 Q2 2021

Historical avgQ2 2021

+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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