NYSE$SKT

Tanger Factory Outlet Centers Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Tanger reported strong second-quarter results, demonstrating continued execution of its strategic plan, occupancy growth, and positive rent spreads, leading to increased full-year guidance.

Tanger Outlets reported a strong second quarter with net income available to common shareholders at $0.23 per share, and FFO at $0.47 per share. The company grew occupancy by 70 basis points sequentially and 230 basis points year over year. Due to this strong performance, Tanger is raising its full-year guidance.

  • Net income available to common shareholders was $0.23 per share, or $23.9 million, compared to $0.19 per share, or $19.7 million, for the prior year period.
  • FFO available to common shareholders was $0.47 per share, or $52.4 million, compared to $0.45 per share, or $48.8 million, for the prior year period.
  • Occupancy was 97.2% on June 30, 2023, compared to 96.5% on March 31, 2023 and 94.9% on June 30, 2022
  • Blended average rental rates increased for the sixth consecutive quarter, increasing 13.2% on a cash basis for leases executed for comparable space during the twelve months ended June 30, 2023.

Headline financials

Total Revenue

$111M

Previous: $106M+4.5%
EPS (adj)

$0.47

Previous: $0.45+4.4%
Portfolio Occupancy

97.2%

Previous: 94.9%+2.4%
Capital Expenditures

-$71.8M

Previous: -$25.7M-179.3%
Free Cash Flow

-$47.6M

Previous: -$5.81M-719.5%
Net Income

$24.2M

Previous: $19.9M+21.6%
Operating Income

$33.2M

Previous: $27.6M+20.5%
Gross Profit

$76.9M

Previous: $73.1M+5.2%
Cash & Equivalents

$213M

Previous: $194M+9.7%
Total Assets

$2.2B

Previous: $2.16B+1.9%
Stock-Based Comp

$3.38M

Previous: $4.25M-20.5%

Revenue & EPS history

Tanger · Revenue · Quarterly

$111M

Q2 2023+4.5%vs Q2 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Tanger · $111M total across 3 segments · Q2 2023

  • Rental Revenue
    $105M+3.1%
  • Other Revenue
    $3.93M+31.3%
  • Management and Leasing
    $2.12M+47.8%

Forward guidance

Based on the Company’s better-than-anticipated performance in the second quarter 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 $0.90 and $0.97
  • Depreciation and amortization of real estate assets - consolidated and the Company’s share of unconsolidated joint ventures $0.96
  • Estimated diluted FFO per share between $1.86 and $1.93
  • Reversal of previously expensed compensation related to executive departure ($0.01)
  • Estimated diluted Core FFO per share between $1.85 and $1.92

Headwinds

  • General and administrative expense, excluding executive departure adjustments $73 to $76 million
  • Interest expense $47 to $49 million
  • Other income (expense) $7 to $9 million
  • Annual recurring capital expenditures, renovations and second generation tenant allowances $45 to $55 million
  • Weighted average diluted common shares are expected to be approximately 106 million for earnings per share and 111 million for FFO and Core FFO per share.

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 2023

Historical avgQ2 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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