Tanger Inc. Reports Mixed Q3 Results with Increased Rental Revenues and Decreased Net Income

Tanger Inc. reported its financial results for the quarter and nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period. The company, a leading owner and operator of outlet and open-air retail centers in the U.S. and Canada, experienced a notable increase in rental revenues, which rose to $125.2 million for the third quarter of 2024, up from $110.8 million in the same period of 2023. For the nine months ended September 30, 2024, rental revenues reached $365.3 million, compared to $319.0 million in 2023.

Total revenues for the third quarter of 2024 were $133.0 million, an increase from $117.3 million in the prior year. However, total expenses also rose significantly to $93.8 million from $81.1 million, leading to a decrease in net income for the quarter to $25.9 million, down from $28.9 million in 2023. For the nine-month period, net income was $75.2 million, a decline from $79.0 million in the previous year.

The increase in revenues was attributed to a strengthened tenant mix and new rental rates, while higher operating expenses, depreciation, and interest expenses from variable interest rate swaps negatively impacted profitability. The company’s total assets decreased to $2.3 billion as of September 30, 2024, from $2.3 billion at the end of 2023, with total liabilities also declining to $1.7 billion.

Tanger Inc. maintained a strong occupancy rate of 97% across its portfolio, although this was a slight decrease from 98% in the previous year. The company executed leases for 2,175 square feet of comparable space with a new initial rent of $35.25 per square foot, reflecting a rent spread of 15.0%.

Strategically, Tanger Inc. increased its unsecured lines of credit borrowing capacity from $520 million to $620 million in April 2024, with a potential increase to $1.2 billion. The company also engaged in an At-the-Market (ATM) Offering program, generating approximately $25 million in gross proceeds for the nine months ended September 30, 2024.

In terms of dividends, the Board declared a cash dividend of $0.275 per common share, payable on November 15, 2024. The company continues to focus on growth through the development, expansion, or acquisition of additional retail real estate assets, while managing its capital expenditures, which decreased significantly to $63.6 million for the nine months ended September 30, 2024, from $130.1 million in 2023.