NYSE$SKT

Tanger Factory Outlet Centers Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Tanger reported strong results driven by strategic priorities of accelerating leasing, commercializing marketing, and reshaping operations.

Tanger Factory Outlet Centers, Inc. reported a successful third quarter with positive blended rent spreads of 5.7% and occupancy growth of 210 basis points to 96.5%. The company raised its full-year 2022 earnings guidance and increased its dividend by 10% in October.

  • Net income available to common shareholders was $0.22 per share, or $23.0 million, compared to a net loss of $0.11 per share, or $11.0 million, for the prior year period.
  • Funds From Operations (FFO) available to common shareholders was $0.47 per share, or $51.7 million, compared to $0.16 per share, or $17.8 million, for the prior year period.
  • Core Funds From Operations (Core FFO) available to common shareholders was $0.47 per share, or $51.7 million, compared to $0.47 per share, or $51.8 million, for the prior year period.
  • Occupancy was 96.5% on September 30, 2022, compared to 94.4% on September 30, 2021

Headline financials

Total Revenue

$111M

Previous: $112M-0.9%
EPS (adj)

$0.47

Previous: $0.47+0.0%
Portfolio Occupancy

96.5%

Previous: 94.3%+2.3%
Capital Expenditures

-$45.7M

No prior period
Free Cash Flow

-$22.5M

No prior period
Net Income

$23.3M

Previous: -$11.1M+310.2%
Operating Income

$32.6M

Previous: -$13.3M+344.2%
Gross Profit

$75.4M

Previous: $75.3M+0.1%
Cash & Equivalents

$181M

Previous: $143M+26.3%
Total Assets

$2.16B

No prior period
Stock-Based Comp

$3.01M

Previous: $2.99M+0.4%

Revenue & EPS history

Tanger · Revenue · Quarterly

$111M

Q3 2022-0.9%vs Q3 2021
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Tanger · $111M total across 3 segments · Q3 2022

  • Rental Revenue
    $106M-1.6%
  • Other Revenue
    $3.98M+11.8%
  • Management and Leasing
    $1.9M+15.6%

Forward guidance

Management is increasing its full-year 2022 guidance with its current expectations for net income, FFO and Core FFO per share for 2022.

Tailwinds

  • Estimated diluted net income per share between $0.75 and $0.80
  • Estimated diluted FFO per share between $1.77 and $1.82
  • Estimated diluted Core FFO per share between $1.78 and $1.83
  • Same Center NOI growth - total portfolio at pro rata share between 3.5% and 5.0%
  • General and administrative expense, excluding executive severance costs between $68 and $70 million

Headwinds

  • Annual recurring capital expenditures and second generation tenant allowances between $32 and $37 million
  • Weighted average diluted common shares are expected to be approximately 105.0 million for earnings per share
  • Weighted average diluted common shares are expected to be approximately 110.0 million for FFO and Core FFO per share.
  • Estimates do not include the impact of the acquisition or sale of any outparcels, properties or joint venture interests
  • Estimates do not include any additional financing activity.

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 2022

Historical avgQ3 2022

+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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