Core Viewpoint - Tanger (SKT) shares have recently declined by 5.4% over the past two weeks, but the formation of a hammer chart pattern suggests potential support and a possible trend reversal in the future [1] Technical Analysis - The hammer chart pattern indicates a small candle body with a long lower wick, signaling that bears may be losing control and that a trend reversal could occur [3] - This pattern typically forms during a downtrend when the stock opens lower, makes a new low, but then closes near or above the opening price, suggesting buying interest [3] Fundamental Analysis - There has been a positive trend in earnings estimate revisions for SKT, with the consensus EPS estimate increasing by 0.4% over the last 30 days, indicating bullish sentiment among analysts [5] - SKT holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which historically outperforms the market [5] - The Zacks Rank serves as a timing indicator, suggesting that SKT's prospects are improving, further supporting the potential for a turnaround [5]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - Tanger Inc. (NYSE: SKT) has successfully navigated a reshuffling of the retail sector, indicating resilience in its business model [2] Group 2 - The article emphasizes the importance of performing due diligence and drawing personal conclusions before making investment decisions [4] - Seeking Alpha clarifies that past performance does not guarantee future results and that the views expressed may not reflect the platform's overall stance [5]

Financial Data and Key Metrics Changes - Core FFO for Q3 2024 reached $0.54 per share, an 8% increase from the prior year period, supported by a 4.3% increase in same-center NOI [5][13] - Net debt to adjusted EBITDA per share was 5 times for the 12 months ended September 30, down from 5.8 times at the end of last year [14][15] - The company raised its core FFO per share expectations for 2024 to a range of $2.09 to $2.13, representing core FFO growth of 7% to 9% [17] Business Line Data and Key Metrics Changes - Average tenant sales productivity remained steady at $438 per square foot for the trailing 12 months [6] - The leasing team executed 543 leases totaling 2.6 million square feet over the trailing 12 months, achieving a blended increase of 14% on comparable space [8] Market Data and Key Metrics Changes - The occupancy rate ended the quarter at 97.4% [8] - The company experienced positive momentum in sales, with a focus on attracting a broader, younger, and more affluent demographic [7] Company Strategy and Development Direction - The company is focused on remerchandising efforts to attract sought-after brands and diversify its tenant mix, which is driving consistent traffic to its centers [6][7] - The strategy includes enhancing digital marketing capabilities and community engagement initiatives to connect with younger shoppers [7] - The company is actively pursuing both marketed and off-market transactions across outlet and open-air lifestyle centers [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategy and the ability to deliver solid results, citing robust demand for space and a strong balance sheet [11][14] - The management noted that the early read on holiday shopping is positive, with consumers shopping early and a strong performance expected from discount channels [20] Other Important Information - The company successfully responded to recent hurricanes with minor physical impacts across its portfolio, and its Asheville Center served as a staging location for first responders [9][10] - The board welcomed Sonia Syngal, bringing nearly 30 years of retail industry experience, which is expected to strengthen the board's capabilities [11] Q&A Session Summary Question: Concerns about tariffs and lower US consumption - Management acknowledged the cyclical nature of the business but noted positive early signs for holiday shopping, with consumers shopping early and a strong performance expected from discount channels [20] Question: Progress on retaining aspirational brands - Management highlighted the success of Sephora as a new brand in their centers, attracting a younger customer base and driving traffic [22][25] Question: Future leasing spreads - Management indicated that they expect to continue generating positive leasing spreads, with opportunities to grow into low double digits [28] Question: Acquisition pipeline opportunities - Management noted ongoing activity in both marketed and off-market transactions across various types of centers [28] Question: Expense recoveries and trends - Management discussed the factors affecting expense recovery rates and expressed confidence in maintaining efficiency while driving revenue [31][34] Question: New brands and re-tenanting process - Management provided insights into the success of new brands like Birkenstock and the strategy for diversifying the tenant mix [37] Question: Capital deployment opportunities - Management emphasized the focus on activating peripheral land and the thoughtful approach to capital allocation [38] Question: Impact of hurricanes on Q4 - Management stated that there should be no significant impact on Q4 results due to the brief closure of the Asheville Center [52] Question: Target leverage range - Management confirmed a target net debt to EBITDA range of 5 times to 6 times [53]

Core Viewpoint - Tanger (SKT) reported quarterly funds from operations (FFO) of $0.54 per share, exceeding the Zacks Consensus Estimate of $0.53 per share, and showing an increase from $0.50 per share a year ago [1][2] Financial Performance - The company achieved revenues of $125.22 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.42%, compared to $110.84 million in the same quarter last year [2] - Over the last four quarters, Tanger has consistently exceeded consensus FFO estimates [2] Stock Performance - Tanger shares have increased approximately 20.8% since the beginning of the year, while the S&P 500 has gained 21.2% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Future Outlook - The current consensus FFO estimate for the upcoming quarter is $0.52, with expected revenues of $128.42 million, and for the current fiscal year, the estimate is $2.10 on revenues of $493.24 million [7] - The estimate revisions trend for Tanger is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The REIT and Equity Trust - Retail industry is currently ranked in the top 37% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Company Overview - Tanger (SKT) currently holds a Momentum Style Score of B, indicating a positive momentum outlook [2] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [3] Price Performance - Over the past week, SKT shares increased by 0.66%, outperforming the Zacks REIT and Equity Trust - Retail industry, which rose by 0.09% [5] - In the last month, SKT's price change was 8.44%, significantly higher than the industry's 0.89% [5] - Over the past quarter, SKT shares have risen by 17.21%, and over the last year, they have increased by 42.81%, compared to the S&P 500's gains of 3.56% and 36.11%, respectively [6] Trading Volume - SKT's average 20-day trading volume is 713,554 shares, which serves as a baseline for price-to-volume analysis [7] Earnings Outlook - In the past two months, one earnings estimate for SKT has moved higher, while none have moved lower, resulting in an increase in the consensus estimate from $2.09 to $2.10 [9] - For the next fiscal year, one estimate has also moved upwards with no downward revisions during the same period [9] Conclusion - Considering the positive price trends, trading volume, and earnings estimate revisions, SKT is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [9]

Core Insights - Tanger has elected Sonia Syngal as a director, expanding its board from nine to ten members, effective September 23, 2024 [1] Company Overview - Tanger Inc. is a leading operator of outlet and open-air retail shopping destinations with over 43 years of expertise in the retail and outlet shopping industries [5] - The company operates a portfolio of 38 outlet centers, one adjacent managed center, and one open-air lifestyle center, totaling over 15 million square feet across 20 U.S. states and Canada [5] - Tanger has been a publicly traded REIT since 1993, with over 3,000 stores operated by more than 700 different brand name companies [5] Leadership Background - Sonia Syngal, the new board member, is the former CEO of Gap Inc. with nearly 30 years of industry experience in global supply chain operations, brand management, and product-to-market innovation [2][3] - During her tenure as CEO of Gap Inc. from 2020 to 2022, Syngal financially stabilized the company and doubled e-commerce revenue across its portfolio of brands [3] - Syngal has also held leadership roles at Old Navy and has experience with Sun Microsystems and Ford Motor Company [3] Board Statements - Stephen Yalof, President and CEO of Tanger, expressed confidence that Syngal's expertise will strengthen the board's capabilities and support the company's growth strategies [4] - Bridget Ryan-Berman, lead independent director, welcomed Syngal's extensive experience in the global fashion industry, which will aid in refreshing and growing the board's expertise [4] - Syngal expressed excitement about contributing to Tanger's vision for growth and enhancing the shopping experience for customers [4]

Core Viewpoint - Tanger Inc. is a growing shopping center-focused real estate investment trust (REIT) with strong core funds from operations (FFO) and a low dividend payout ratio, indicating potential for future dividend increases [3][18][19] Financial Performance - In the second quarter, Tanger earned $60.9 million in core FFO, representing a 16% year-over-year increase [7] - The REIT's core FFO per share was $0.53, which comfortably covered the raised dividend payout of $27.50 per share [10] - Tanger revised its 2024 FFO guidance upward to a range of $2.05 to $2.12 per share [13] Dividend Policy - The company maintains a dividend payout ratio of approximately 50% of its core FFO, having raised its dividend twice in the past year [10][19] - The anticipated dividend hikes are supported by a low payout ratio, which provides a margin of safety for passive income investors [11][19] Portfolio Overview - Tanger owns about 15.6 million square feet across 40 properties in North America, with a high occupancy rate of 97.1% in its same-store portfolio [5][6] - The portfolio is primarily open-air shopping centers located in large metropolitan areas, attracting major brands like Nike and The Gap [5] Market Valuation - The stock is currently trading at a 15.0x FFO multiple, which is competitive compared to peers like Kimco Realty and Realty Income [13][19] - There is potential for Tanger to achieve a higher valuation multiple of 16x FFO, suggesting an intrinsic value of $33.30 per share [14] Growth Drivers - The company benefits from re-tenanting its properties, with new leases generating higher rents than previous ones, driving organic FFO growth [8] - Strong lease metrics and positive leasing activity have contributed to the growth in same-store net operating income [4]

Core Insights - Tanger Inc. (NYSE:SKT) is positioned as a strong investment opportunity due to its unique business model and consistent performance in the retail sector [1][6] - The company has demonstrated robust same-store NOI growth and high occupancy rates, which contribute to its appeal for income-focused investors [2][6] Company Overview - Tanger Inc. is the largest pure-play owner of open-air outlet centers in the U.S. and Canada, with a portfolio of 40 strategically located retail centers [2] - The outlet model has proven resilient against the retail apocalypse, attracting bargain-seeking customers and maintaining a simple, low-maintenance business structure [2] Financial Performance - In Q2 2024, Tanger achieved 8% year-over-year same-store NOI growth, driven by strong retailer demand and a 15% average rent spread on new and renewal leases [2][3] - The company reported a 13% year-over-year growth in FFO per share, reaching $0.53, supported by the addition of three new centers [2][3] Guidance and Future Prospects - Management raised guidance for full-year Core FFO per share growth to 6.5%, with a midpoint target of $2.07, and increased same-store NOI growth expectations to 4.0% [3] - The company is actively attracting popular brands, including six new Sephora stores, enhancing its portfolio and consumer appeal [3] Risk Management - Despite potential risks from higher interest rates and retail sector challenges, Tanger is well-prepared to manage tenant issues and maintain occupancy rates [3] - The company has a strong balance sheet with a net debt to EBITDAre ratio of 5.4x, below the safe threshold for REITs, and expects to reduce leverage further [3] Dividend and Valuation - Tanger offers a 3.6% dividend yield, with a payout ratio of 51%, allowing for retained capital for growth and future dividend increases [4] - The stock's forward P/FFO is 14.6, slightly below its historical average, indicating reasonable valuation for potential investors [4][5] Investment Appeal - Tanger presents a quality opportunity for income-focused investors, combining stability and growth potential through its strong portfolio and consistent financial performance [6] - The current valuation, alongside a reasonable dividend yield and expected FFO growth, makes it an attractive option in the current market [5][6]

Financial Results Announcement - Tanger Inc. will release its financial results for the quarter ended September 30, 2024, on November 6, 2024, after market close [1] - A conference call for analysts, investors, and interested parties is scheduled for November 7, 2024, at 8:30 a.m. Eastern Time [1] Conference Call Access - Listeners can access the conference call by dialing 1-877-605-1702 [2] - A live audio webcast will be available on Tanger's Investor Relations website [2] - A telephone replay of the call will be available from November 7, 2024, at 11:30 a.m. Eastern Time until November 21, 2024 [2] Company Overview - Tanger Inc. is a leading owner and operator of outlet and open-air retail shopping destinations with over 43 years of experience [3] - The company operates 38 outlet centers and one open-air lifestyle center, totaling over 15 million square feet across 20 U.S. states and Canada [3] - Tanger has been a publicly traded REIT since 1993 and features over 3,000 stores operated by more than 700 brand name companies [3]

Revenue and Income - Rental revenues for Q2 2024 increased to $122.3 million, up 16.9% from $104.6 million in Q2 2023[26] - Total revenues for the six months ended June 30, 2024, reached $252.3 million, a 14.9% increase compared to $219.6 million for the same period in 2023[26] - Net income attributable to Tanger Inc. for Q2 2024 was $24.8 million, compared to $24.2 million in Q2 2023, reflecting a 2.7% increase[26] - Comprehensive income for Q2 2024 was $26.6 million, slightly up from $26.2 million in Q2 2023[29] - Net income for the six months ended June 30, 2024, was $49,221,000, compared to $50,160,000 for the same period in 2023, reflecting a decrease of approximately 1.9%[40] - Net income for Q2 2024 was $25.9 million, slightly up from $25.3 million in Q2 2023, resulting in basic earnings per common unit of $0.23[44] - Comprehensive income for the six months ended June 30, 2024, was $52.2 million, compared to $47.8 million for the same period in 2023[47] Assets and Liabilities - Total assets decreased to $2.29 billion as of June 30, 2024, down from $2.32 billion at the end of 2023[24] - Total debt increased to $1.46 billion as of June 30, 2024, compared to $1.44 billion at the end of 2023[24] - Total liabilities as of June 30, 2024, were $1.73 billion, up from $1.72 billion at the end of 2023[42] - The equity attributable to Tanger Inc. decreased to $553.7 million as of June 30, 2024, from $566.8 million at the end of 2023[24] - The total equity attributable to Tanger Inc. was $553,740,000 as of June 30, 2024, compared to $566,785,000 at the end of 2023, indicating a decrease of about 2.3%[37] Cash Flow and Dividends - Total cash dividends paid amounted to $59,671,000 for the six months ended June 30, 2024, an increase from $50,459,000 in the prior year, representing a growth of about 18.8%[40] - Net cash provided by operating activities was $103,861,000 for the six months ended June 30, 2024, compared to $98,919,000 in 2023, indicating an increase of approximately 5%[40] - Cash distributions paid during the six months ended June 30, 2024, amounted to $62,276,000, compared to $52,667,000 in 2023, indicating an increase of approximately 18.3%[54] - The Company declared a cash dividend of $0.275 per common share, payable on May 15, 2024, to shareholders of record on April 30, 2024[92] - The Company declared a cash dividend of $0.275 per common share, payable on August 15, 2024, to shareholders of record on July 31, 2024[129] Expenses - Depreciation and amortization expenses for the six months ended June 30, 2024, were $68,034,000, compared to $51,282,000 in 2023, representing an increase of approximately 32.7%[40] - Interest paid, net of interest capitalized, was $26,681,000 for the six months ended June 30, 2024, compared to $20,527,000 in the same period of 2023, reflecting a 29.9% increase[124] - General and administrative expenses rose by approximately $509,000 to $18.8 million in 2024 from $18.3 million in 2023, primarily due to higher information technology costs[152] - Property operating expenses increased by approximately $3.8 million to $37.5 million in 2024 compared to $33.7 million in 2023, driven by new developments and acquired properties[151] Shareholder Information - The Company had approximately 108.824 million total limited partnership units outstanding as of June 30, 2023, which increased to approximately 112.911 million by June 30, 2024[98] - The Company authorized a share repurchase program of up to $100.0 million through May 31, 2025, with no repurchases made in the first two quarters of 2024 or 2023[95] - The Company has an at-the-market stock offering program with a gross sales price of up to $250.0 million, with approximately $220.1 million remaining available for sale as of June 30, 2024[93] Joint Ventures and Investments - The company had partial ownership interests in 6 unconsolidated centers totaling approximately 2.1 million square feet, including 2 centers in Canada[56] - Revenues from unconsolidated joint ventures for the three months ended June 30, 2024, were $23.2 million, an increase from $21.8 million in the same period of 2023, representing a growth of approximately 6.4%[75] - The net income from unconsolidated joint ventures for the six months ended June 30, 2024, was $10.98 million, compared to $7.44 million in 2023, indicating a year-over-year increase of approximately 47.5%[75] Debt and Financing - The Company guarantees the Operating Partnership's unsecured lines of credit, which have a total borrowing capacity of $620.0 million as of June 30, 2024[76] - The outstanding principal amounts on the debt guaranteed by the Company include $35.0 million in unsecured lines of credit and $325.0 million in an unsecured term loan as of June 30, 2024[77] - The Operating Partnership's unsecured lines of credit increased from $520 million to $620 million, with a potential to reach $1.2 billion through an accordion feature[80] - The company maintained compliance with all debt covenants as of June 30, 2024[82] - The total unencumbered assets to unsecured debt ratio is 250%, exceeding the required minimum of 150%[216] Future Outlook - The company plans to continue expanding its rental property portfolio and enhancing operational efficiencies to drive future growth[44] - The company intends to continue growing its portfolio through new developments, expansions, and acquisitions, although future projects may not be completed as scheduled[189] - The company anticipates adequate cash to fund operating expenses, debt service obligations, and dividend payments in both the short- and long-term[208] - The company is evaluating the impact of new accounting standards issued by the FASB, including ASU 2023-05, which may affect future financial statements[126]