NYSE$SKT

Tanger Factory Outlet Centers Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported strong third-quarter results, grew occupancy, achieved positive rent spreads, and raised full-year 2023 guidance.

Tanger reported a strong third quarter with significant occupancy growth and positive rent spreads. The company opened Tanger Outlets Nashville, which is 96.5% leased. Based on better-than-anticipated performance, management is increasing its full-year 2023 guidance.

  • Net income available to common shareholders was $0.26 per share, or $27.2 million, compared to $0.22 per share, or $23.0 million, for the prior year period.
  • Occupancy was 98.0% on September 30, 2023, compared to 97.2% on June 30, 2023 and 96.5% on September 30, 2022
  • Same center net operating income increased 7.6% to $87.9 million for the third quarter of 2023 from $81.7 million for the third quarter of 2022
  • Blended average rental rates were positive for the seventh consecutive quarter at 14.5% on a cash basis for leases executed for comparable space during the twelve months ended September 30, 2023.

Headline financials

Total Revenue

$117M

Previous: $111M+5.3%
EPS (adj)

$0.50

Previous: $0.47+6.4%
Portfolio Occupancy

98.0%

Previous: 96.5%+1.6%
Capital Expenditures

-$120M

Previous: -$45.7M-162.5%
Free Cash Flow

-$92.4M

Previous: -$22.5M-311.4%
Net Income

$27.6M

Previous: $23.3M+18.7%
Operating Income

$36.3M

Previous: $32.6M+11.4%
Gross Profit

$80.6M

Previous: $75.4M+6.9%
Cash & Equivalents

$188M

Previous: $181M+4.3%
Total Assets

$2.21B

Previous: $2.16B+2.2%
Stock-Based Comp

$3.39M

Previous: $3.01M+12.7%

Revenue & EPS history

Tanger · Revenue · Quarterly

$117M

Q3 2023+5.3%vs Q3 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Tanger · $117M total across 3 segments · Q3 2023

  • Rental Revenue
    $111M+5.0%
  • Other Revenue
    $4.37M+9.9%
  • Management and Leasing
    $2.14M+12.7%

Forward guidance

Based on the Company’s better-than-anticipated performance in the third 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: Low Range: $0.93, High Range: $0.97
  • Depreciation and amortization of real estate assets - consolidated and the Company’s share of unconsolidated joint ventures: Low Range: 0.98, High Range: 0.98
  • Estimated diluted FFO per share: Low Range: $1.91, High Range: $1.95
  • Reversal of previously expensed compensation related to executive departure (1): Low Range: (0.01), High Range: (0.01)
  • Estimated diluted Core FFO per share: Low Range: $1.90, High Range: $1.94

Headwinds

  • Same Center NOI growth - total portfolio at pro rata share: Low Range: 4.75 %, High Range: 5.50 %
  • General and administrative expense, excluding executive departure adjustments (1): Low Range: $73.0, High Range: $76.0
  • Interest expense: Low Range: $47.5, High Range: $48.5
  • Other income (expense) (2): Low Range: $8.0, High Range: $9.0
  • Annual recurring capital expenditures, renovations and second generation tenant allowances: Low Range: $40.0, High Range: $50.0

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 2023

Historical avgQ3 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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