Tanger Outlets(US:SKT)2023-04-28 20:06Financial Performance - Total revenues for Q1 2023 were $108,943, a slight increase of 0.1% compared to $108,868 in Q1 2022[27] - Net income attributable to Tanger Factory Outlet Centers, Inc. for Q1 2023 was $23,541, representing a 14.8% increase from $20,518 in Q1 2022[27] - Basic and diluted earnings per share for Q1 2023 were both $0.22, up from $0.20 and $0.19 respectively in Q1 2022[27] - Net income for the three months ended March 31, 2023, was $24,860,000, an increase of 15.5% compared to $21,462,000 in the same period of 2022[39] - Net income for the three months ended March 31, 2023, was $4.014 million, down from $5.051 million in the prior year, indicating a decrease of 20.6%[75] - The company reported a net income of $23,541,000 for the three months ended March 31, 2023, compared to $20,518,000 for the same period in 2022, representing an increase of approximately 9.8%[103] - Net income for Q1 2023 was $24,860,000, compared to $21,462,000 in Q1 2022, marking an increase of 11.2%[220] Assets and Liabilities - Total assets decreased to $2,185,392 as of March 31, 2023, down from $2,217,665 at the end of 2022[25] - Total liabilities decreased to $1,679,086 as of March 31, 2023, compared to $1,703,731 at the end of 2022[25] - Total debt remained stable at $1,427,941 as of March 31, 2023, slightly down from $1,428,494 at the end of 2022[25] - Total assets as of March 31, 2023, were $2,184,575,000, a decrease from $2,217,011,000 as of December 31, 2022[37] - Total liabilities decreased to $1,678,269,000 as of March 31, 2023, from $1,703,077,000 at the end of 2022[37] - Total debt as of March 31, 2023, was $1,427,941,000, slightly down from $1,428,494,000 at the end of 2022[37] Cash and Cash Equivalents - Cash and cash equivalents decreased to $202,821 as of March 31, 2023, from $212,124 at the end of 2022[25] - Cash and cash equivalents at the end of Q1 2023 were $202,821,000, compared to $152,847,000 at the end of Q1 2022, reflecting a year-over-year increase of 32.7%[35] - Cash and cash equivalents at the end of the period were $202.629 million, up from $152.578 million in the previous year, marking a year-over-year increase of 32.8%[50] Operating Activities - Net cash provided by operating activities increased to $25,574,000 in Q1 2023 from $18,854,000 in Q1 2022, representing a growth of 35.7%[35] - Net cash provided by operating activities increased to $25.495 million from $18.688 million, representing a growth of 36.5% year-over-year[50] - The company reported total fees from unconsolidated joint ventures of $1.667 million for the three months ended March 31, 2023, compared to $1.527 million in the same period of 2022, an increase of 9.2%[71] Revenue Breakdown - Total revenues for Q1 2023 were $108,943,000, slightly up from $108,868,000 in Q1 2022, with rental revenues at $103,582,000, down from $104,609,000[39] - Rental revenues for the three months ended March 31, 2023, totaled $103,582 thousand, a slight decrease from $104,609 thousand in the same period of 2022[129] - Fixed rental revenues increased to $81,887 thousand in Q1 2023 from $81,312 thousand in Q1 2022, while variable rental revenues decreased to $21,695 thousand from $23,297 thousand[129] Expenses - The company reported property operating expenses of $33,148 for Q1 2023, down from $36,758 in Q1 2022[27] - General and administrative expenses increased to $17,434 in Q1 2023, compared to $15,467 in Q1 2022[27] - Property operating expenses decreased by $3.6 million to $33.148 million in 2023 from $36.758 million in 2022, primarily due to lower snow removal costs and timing of advertising expenses[155] - General and administrative expenses increased by $2.0 million in 2023, mainly due to hiring key employees and additional operational expenses[156] Dividends - Cash dividends paid in Q1 2023 totaled $24,623,000, compared to $19,315,000 in Q1 2022, marking an increase of 27.5%[35] - The company declared a cash dividend of $0.22 per common share payable on February 15, 2023, to shareholders of record on January 31, 2023[95] - The company declared a cash dividend of $0.245 per common share, payable on May 15, 2023, to shareholders of record on April 28, 2023[133] Development and Expansion - The company is developing a new outlet center in Nashville, Tennessee, with an estimated total net cost of $142 million to $150 million, and costs incurred to date amounting to $62.8 million[68] - The Nashville outlet center, expected to open in Q3 2023, has incurred costs of $62.8 million with an estimated total cost of $142.0 million to $150.0 million[181] - The company has one center under construction and continues to explore new outlet center developments[140] Joint Ventures - The company has partial ownership interests in six unconsolidated outlet centers totaling approximately 2.1 million square feet[53] - The company’s equity in earnings of unconsolidated joint ventures improved to $(1.935) million from $(2.513) million year-over-year[50] - As of March 31, 2023, the carrying value of investments in unconsolidated real estate joint ventures was $73.4 million for RioCan Canada and negative values for other joint ventures, totaling $(51.4) million[70] Debt and Financing - The Company guarantees the Operating Partnership's obligations with respect to unsecured lines of credit totaling $520.0 million as of March 31, 2023[76] - The total principal amount of debt guaranteed by the Company was $325.0 million as of March 31, 2023, unchanged from December 31, 2022[77] - The company maintains unsecured lines of credit providing for borrowings of up to $520.0 million, with a potential increase to $1.2 billion through an accordion feature[197] - Scheduled maturities of existing long-term debt for 2023 and 2024 are $3.6 million and $5.1 million, respectively, with a significant maturity of $625.0 million in 2027[190] Performance Metrics - Funds From Operations (FFO) is a key performance measure for the company, excluding depreciation and amortization related to real estate[211] - FFO for the three months ended March 31, 2023, was $52,702,000, compared to $49,877,000 for the same period in 2022, reflecting an increase of 5.5%[220] - Core FFO available to common shareholders for Q1 2023 was $51,230,000, up from $49,443,000 in Q1 2022, indicating a growth of 3.6%[220] - FFO per share - diluted increased to $0.47 in Q1 2023 from $0.45 in Q1 2022, representing a 4.4% rise[220] - Core FFO per share - diluted also rose to $0.46 in Q1 2023, consistent with the previous year’s figure of $0.45[220] Other Comprehensive Income - The company recognized a loss of $3,426,000 in other comprehensive income related to interest rate swaps for the three months ended March 31, 2023, compared to a gain of $7,674,000 for the same period in 2022[89] - The accumulated other comprehensive income (loss) for Tanger Factory Outlet Centers, Inc. was $(24,361) thousand, a decrease from $(24,516) thousand as of December 31, 2022[124] - The balance of accumulated other comprehensive income (loss) for the Operating Partnership as of March 31, 2023, was $(25,703) thousand, compared to $(25,867) thousand as of December 31, 2022[126]