Tanger (SKT) Q1 2025 earnings summary

Executive summary

• Core FFO per share rose to $0.53, with same-center NOI up 2.3% and strong leasing activity, including 2.5M sq ft executed and 13 consecutive quarters of positive rent spreads.

• Portfolio expanded with the $167M Pinecrest acquisition and the $17M Howell sale, resulting in a $4.2M non-cash impairment charge.

• Portfolio sales per sq ft reached $455, occupancy ended at 95.8%, and tenant mix remains diverse with robust demand.

• Dividend increased 6.4% to $1.17 per share annualized, with a 53% payout ratio.

• Balance sheet remains investment grade, low-leveraged, and well-laddered, supporting growth and dividend coverage.

Financial highlights

• Q1 2025 total revenues rose to $135.4M from $123.4M year-over-year, driven by higher rental revenues and acquisitions.

• Net income for Q1 2025 was $19.0M, down from $22.2M in Q1 2024, mainly due to a $4.2M impairment charge.

• FFO available to common shareholders was $62.7M ($0.53/share), up from $58.6M ($0.51/share) in Q1 2024.

• Net debt to Adjusted EBITDAre was 5.2x at quarter-end; $481M available under unsecured credit lines.

• Occupancy cost ratio was 9.7% for the trailing twelve months.

Outlook and guidance

• 2025 net income per diluted share guidance: $0.91–$0.99; Core FFO per share guidance: $2.22–$2.30.

• Same-center NOI growth expected between 2.0% and 4.0% for 2025.

• Guidance reflects recent acquisitions, asset sales, and refinancing, but excludes future transactions.

• Annual recurring capital expenditures and tenant allowances projected at $55M–$65M.

• Guidance incorporates macro uncertainty and variable expense assumptions.