NYSE$SKT

Tanger Factory Outlet Centers Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Tanger reported strong quarterly results driven by leasing efforts and percentage rental growth.

Tanger Factory Outlet Centers reported a net loss of $11.0 million, or $0.11 per share, but Core FFO available to common shareholders was $51.8 million, or $0.47 per share. The company's occupancy rate increased to 94.3%, and tenant sales reached an all-time high of $448 per square foot. Tanger also increased its annualized dividend by 2.8% to $0.73 per share.

  • Occupancy reached 94.3%, up 130 basis points since June 30th and 140 basis points over the last twelve months.
  • Rent spreads improved by 240 basis points sequentially on a cash basis.
  • Percentage rental growth was more than two and a half times the comparable 2019 period during the third quarter.
  • Tenant sales reached an all-time high of $448 per square foot for the consolidated portfolio during the twelve months ended September 30, 2021, an increase of more than 13% over the comparable 2019 period.

Headline financials

Total Revenue

$112M

Previous: $103M+9.0%
EPS (adj)

$0.47

Previous: $0.44+6.8%
Portfolio Occupancy

94.3%

Previous: 92.9%+1.5%
Net Income

-$11.1M

Previous: $12.9M-185.8%
Operating Income

-$13.3M

Previous: $13.8M-196.9%
Gross Profit

$75.3M

No prior period
Cash & Equivalents

$143M

Previous: $19.8M+623.1%
Stock-Based Comp

$2.99M

No prior period

Revenue & EPS history

Tanger · Revenue · Quarterly

$112M

Q3 2021+9%vs Q3 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Tanger · $112M total across 3 segments · Q3 2021

  • Rental Revenue
    $107M+7.0%
  • Other Revenue
    $3.56M+101.3%
  • Management and Leasing
    $1.64M+37.4%

Forward guidance

Driven by strong traffic and tenant sales during the first nine months of 2021, the results of Tanger’s business operations exceeded expectations and drove higher variable rents and other revenues, leading the Company to increase 2021 full-year Core FFO guidance.

Tailwinds

  • A $9 million to $10 million, or $0.08 to $0.09 per share, decrease in lease termination fees, to approximately $2 million to $3 million, from $12 million in 2020
  • Additional lease adjustments and the recapture of up to 150,000 square feet related to recent tenant bankruptcy filings and restructuring announcements, including 135,000 square feet recaptured through the end of October
  • No further domestic government-mandated retail shutdowns or store capacity limitations
  • General and administrative expense of between $60 million and $63 million, including $2.7 million of compensation related to a voluntary retirement plan and other executive severance incurred during the first nine months.
  • Approximately $0.06 of net dilution related to the 10.0 million common shares issued under the Company’s ATM program; full-year diluted weighted average common shares of approximately 102 million for net income and 107 million for FFO and Core FFO

Headwinds

  • Combined annual recurring capital expenditures and second generation tenant allowances of approximately $12 million to $15 million
  • Does not include the impact of the sale of any outparcels, additional properties or joint venture interests
  • Does not include the acquisition of any properties or joint venture partner interests
  • Does not include any additional financing activity
  • Decrease in lease termination fees

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 Q3 2021

Historical avgQ3 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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