Tanger raises full-year outlook as core FFO climbs
The shopping center operator increased its 2026 diluted FFO per share guidance to a range of $2.45 - $2.52.
Tanger (SKT) reported second-quarter results that saw an increase in both net income and core funds from operations. The outlet center developer raised its full-year financial projections following a rise in tenant sales and rental rate spreads.
Net income available to common shareholders for the quarter was $0.29 a share, or $33.0 million, compared to $0.26 a share, or $29.9 million, in the same period last year. Core FFO available to common shareholders rose to $0.64 a share, or $77.1 million, from $0.58 a share, or $68.6 million, in the prior-year quarter.
Same Center NOI for the second quarter increased 3.5% to $106.9 million, up from $103.3 million in the second quarter of 2024. This growth coincided with an increase in average tenant sales per square foot, which reached $487 for the twelve months ended June 30, 2025, compared to $465 for the same period a year earlier.
Rental dynamics remained positive as blended average rental rate spreads for comparable space reached 10.5% for the twelve months ended June 30, 2025. This figure included a 28.4% increase for re-tenanted space and a 7.7% increase for renewals.
Total portfolio occupancy declined to 96.6% on June 30, 2025, from 97.0% on March 31, 2025. The decrease was due to strategic backfills of vacancy following a recent tenant bankruptcy.
In May 2025, the company completed the acquisition of Levis Commons Town Center for approximately $60 million. Tanger expects a first-year return of approximately 8.5% on the investment.
Full-year 2025 guidance for diluted net income per share was raised to a range of $1.06 - $1.13, from a previous range of $1.05 - $1.13. The company also narrowed its full-year Same Center NOI growth guidance to a range of 2.75% - 4.25%, from a previous range of 2.25% - 4.25%.
Net debt to Adjusted EBITDAre was 4.7x for the twelve month period ended June 30, 2025, down from 4.8x for the period ended March 31, 2025. The Board authorized a quarterly cash dividend of $0.3125 a share in July 2025, representing a 7% increase over the July 2024 dividend of $0.2925.