Continuing to capitalize on value-minded consumers, Tanger on Wednesday posted solid third-quarter results and raised its outlook for the year.
“It’s been about five years of consistency for us,” Stephen Yalof, Tanger’s president and chief executive officer, told WWD. “We came out of COVID really strong and retail has been resilient. It feels like every year there’s another economic headwind the consumer faces, but they have stood resiliently against it and continue to consume in our channel. There’s always going to be an advantage to retailers that offer great brands and value. That’s our specialty.”
He also believes consumer confidence is up since Tuesday’s election, boding well for holiday selling. “Consumers probably have a lot more confidence now than they did a few days ago,” Yalof said. “There was so much uncertainty in the market pending the outcome of the elections, and now with that behind us, there’s far more certainty going into this important holiday selling season. I think it will be a strong holiday selling season for brands. I think that the midterm elections were a referendum on the American public’s frustration with rising gas prices, rising interest rates, rising food prices — the affordability crisis — and world events. Oil prices went down after the election results were in.”
Already, “there’s been a lot of holiday shopping buzz since late October,” and some positive trends, Yalof said, citing accessories as one example. “As a category, accessories is making a move. We see great traction with brands like Tory Burch, Coach, Michael Kors, Vera Bradley. These are brands that had some struggles over the past couple of quarters. All of a sudden, we’re seeing some great momentum.”
Some of Yalof’s optimism is also based on an exchange-traded fund he follows that includes Gap Inc. and American Eagle Outfitters, two major tenants in Tanger properties. After the election, the fund rose 5.5 percent to $93. “What that says is consumer confidence is up, and this is a great time to be going into the holiday shopping season,” Yalof said. He also noted there are 29 days between Thanksgiving and Christmas this year, one more than last year, which will also help business.
Stephen Yalof
Tanger, which operates 38 outlet centers and four open-air lifestyle centers, raised its year’s guidance on core funds from operations to $2.49 to $2.53 per share for the year, from the previous guidance of $2.45 to $2.52. The revised outlook, at its midpoint, represents 8 percent growth from a year ago.
For the quarter ended Sept. 30, net income available to common shareholders was 29 cents per share, or $33.4 million, compared to 28 cents per share, or $31.8 million, for the prior-year period.
Funds from operations (FFO) was 64 cents per share, or $77.1 million, compared to 60 cents per share, or $71.1 million, for the prior-year period.
Core FFO was 64 cents per share, or $77.1 million, compared to 60 cents per share, or $71.1 million, for the prior-year period.
In a statement Yalof said, “Our portfolio continues to attract sought-after brands, restaurants, entertainment, and service uses, while our marketing strategies are drawing a wide range of shoppers, collectively boosting our performance. We see a long runway for growth, driven by strong retailer demand and health, limited new supply, and robust population growth in our markets.”
“We continued to strengthen our financial position using cash on hand and delayed draws on our term loans to repay our maturing notes while keeping leverage low and liquidity strong. Tanger’s differentiated leasing, operating and marketing platforms and disciplined financial strategies are driving sustained value for our stakeholders as we execute our growth strategies to increase NOI, expand our portfolio, and unlock additional value at our centers.”
In other statistics, occupancy was 97.3 percent as of Sept. 30, compared to 97.4 percent on Sept. 30, 2025. Same-center net operating income increased 4.2 percent to $108.4 million last quarter, versus $104 million in the third quarter of 2025.
Average tenant sales per square foot was $487 for the 12 months ended Sept. 30, compared to $475 for the 12 months ended Sept. 30, 2025.
#Tangers #Strong #Spurs #Raised #Outlook #Profit