TANGER INC. (SKT)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 delivered broad-based operational strength: revenue rose to $140.7M, diluted EPS was $0.23, and FFO/Core FFO per share held at $0.54, while occupancy reached 98.0% and Same Center NOI grew 3.0% YoY to $93.8M .
• Management introduced FY 2025 guidance implying 4–8% Core FFO growth, with diluted net income per share of $0.94–$1.02 and diluted FFO per share of $2.22–$2.30; assumptions include 2–4% Same Center NOI growth and consolidated interest expense of $63.5–$65.5M .
• External growth accelerated: Tanger acquired The Promenade at Chenal in December ($73.1M) and Pinecrest in February ($167.0M), both underwritten to ~8% first-year returns and positioned for further upside via remerchandising .
• Balance sheet remains a catalyst: net debt to Adjusted EBITDAre improved to ~4.8x, interest coverage ~4.6x, liquidity ~$745M including undrawn lines and forward equity; dividend maintained at $0.275 per share .

What Went Well and What Went Wrong

• What Went Well

  • Continued pricing power and demand: “Blended average rental rates were positive for the 12th consecutive quarter at 15.0% on a cash basis” (re-tenanting +37.5%, renewals +13.3%) .
  • Portfolio productivity and occupancy: occupancy ended at 98.0% (same-center 98.2%) and Same Center NOI rose 3.0% YoY in Q4; SPSF reached $444 on total portfolio (same-center $441) .
  • Strategic growth: “We acquired two open-air shopping centers… The Promenade at Chenal… and Pinecrest… Management estimates the center to deliver an eight percent return during the first year” .

• What Went Wrong

  • Interest expense pressure: Q4 interest expense increased to $15.1M (from $11.9M in Q4’23), with FY interest expense of $60.6M (vs $47.9M in FY’23), partially offsetting operating gains .
  • Percentage rent softness: same-center percentage rents declined YoY (Q4 and FY), reflecting sales mix and normalization post-pandemic .
  • Estimate benchmarking unavailable: Wall Street EPS/revenue consensus (S&P Global) for Q4 2024 could not be retrieved due to request limits; beat/miss context is therefore not determinable this cycle.*

Financial Results

• Quarterly comparisons (oldest → newest)

• Rental revenue components

• KPIs

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “Leasing momentum remains strong as we continue to add new retailers, brands, and uses to our centers… Our balance sheet provides the liquidity and flexibility to execute our business plan and unlock additional value” — Stephen Yalof, CEO .
• “We delivered core FFO of $0.54 in Q4… Our guidance represents 4% to 8% core FFO growth. We estimate Chenal and Pinecrest will deliver ~8% first-year returns” — Michael Bilerman, CFO/CIO .
• “Our scalable platform has positioned Tanger for continued growth… assets in MSAs that serve both tourist trade and local populations should continue to benefit from outsized population and employment growth” — Stephen Yalof (prepared remarks) .

Q&A Highlights

• Capital needs and forward equity: $70M of forward ATM shares (~1.9M at $36.40) staged for 12–15 months; to fund internal/external uses while keeping leverage <5x .
• Acquisition yields and remerchandising: Focus on long-term value creation; ~8% forward year-one yields include early remerchandising; upside builds over multiple years .
• Tenant credit/watchlist: Forever 21 exposure ~9 stores; watchlist at reasonable levels; proactive backfilling .
• Fixed CAM and recoveries: Growing base rent and fixed CAM drove ~87% recovery; expect similar cadence in 2025 .
• Temp tenants: ~10% footprint; used to mitigate downtime and convert pop-ups to permanent leases; supports cash flow .
• Nashville competitive landscape: 100% leased; location benefits from broader sports/entertainment ecosystem (PopStroke, soccer club) .

Estimates Context

• S&P Global consensus EPS and revenue for Q4 2024 were unavailable due to request limits; therefore beat/miss versus Street cannot be determined this cycle.*
• Implications: With revenue growth, occupancy at 98%, and stable FFO/Core FFO per share, buyside models may modestly lift Same Center NOI trajectories and external-growth contribution, while keeping interest expense and percent-rent assumptions conservative .

Key Takeaways for Investors

• Leasing strength (TTM +15% blended spreads) and 98% occupancy point to durable internal growth; expect continued re-tenanting premium over renewals .
• External growth is now a meaningful driver: Chenal and Pinecrest add scale and mixed-use capabilities with underwritten ~8% first-year returns and remerchandising upside .
• FY 2025 guide embeds 2–4% Same Center NOI growth and 4–8% Core FFO growth; watch expense cadence and interest expense range as levers .
• Balance sheet flexibility (net debt/Adj EBITDAre ~4.8x, liquidity ~$745M) supports pipeline optionality without stressing payout; dividend maintained at $0.275 .
• Percent rent normalization and higher interest expense are the main headwinds; fixed-CAM migration and efficiency initiatives help mitigate .
• Near-term catalysts: integration progress/initial leasing at Chenal/Pinecrest, leasing spreads and occupancy trajectory, and management outreach (conferences/tours) .
• Medium-term thesis: outlet + open-air lifestyle mix, targeted acquisitions, and remerchandising should sustain NOI/FFO growth with disciplined leverage and dividend coverage .

* Estimates unavailable due to S&P Global daily request limit; consensus comparisons could not be retrieved this cycle.