Tanger Outlets(US:SKT)2023-08-04 21:03Financial Performance - Total revenues for Q2 2023 were $110,641,000, an increase of 4% compared to $105,838,000 in Q2 2022[26] - Net income for Q2 2023 was $25,300,000, up 21.3% from $20,819,000 in Q2 2022[26] - Basic earnings per share for Q2 2023 were $0.23, compared to $0.19 in Q2 2022, reflecting a 21.1% increase[26] - Comprehensive income for Q2 2023 was $26,154,000, compared to $20,643,000 in Q2 2022, marking a 26.7% increase[29] - Net income for the six months ended June 30, 2023, was $50,160,000, an increase from $42,281,000 in the same period of 2022, representing a growth of approximately 4.2%[36] - Net income for the six months ended June 30, 2023, increased by $7.9 million to $50.2 million compared to $42.3 million in the same period of 2022[165] - The company’s net income available to limited partners for the six months ended June 30, 2023, was $49,413,000, compared to $41,856,000 for the same period in 2022, reflecting an increase of 18%[40] - Net income attributable to Tanger Factory Outlet Centers, Inc. for the three months ended June 30, 2023, was $24,202,000, compared to $19,905,000 for the same period in 2022, representing a 21.5% increase[108] Revenue and Expenses - Rental revenues for the first half of 2023 were $208,170,000, a slight increase from $206,018,000 in the same period of 2022[26] - Property operating expenses for Q2 2023 were $33,712,000, up from $32,697,000 in Q2 2022[26] - Total expenses for the three months ended June 30, 2023, decreased to $77,405,000 from $78,246,000 in the same period of 2022, a reduction of 1.1%[40] - Rental revenues for the six months increased by $2.2 million to $208.170 million, with existing properties contributing $5.699 million to this increase[166] - Other revenues for the six months rose by $1.7 million to $7.378 million, driven by local and national revenue streams[169] - Property operating expenses decreased by $2.6 million to $66.860 million in the six months, mainly due to lower advertising costs and a mild winter[170] Assets and Liabilities - Total assets as of June 30, 2023, were $2,195,948,000, a decrease from $2,217,665,000 as of December 31, 2022[24] - Total debt remained stable at $1,427,391,000 as of June 30, 2023, compared to $1,428,494,000 at the end of 2022[24] - The company reported a total partners' equity of $507,743,000 as of June 30, 2023, down from $513,934,000 at the end of 2022[38] - The company’s accumulated other comprehensive loss increased to $14,160,000 as of June 30, 2023, from $11,750,000 at the end of 2022[38] - Total long-term debt as of June 30, 2023, is $1,427,391,000, with maturities including $625,000,000 due in 2027[88] Cash Flow - The company reported net cash provided by operating activities of $98,919,000 for the six months ended June 30, 2023, compared to $89,075,000 for the same period in 2022, indicating an increase of approximately 11%[36] - Cash and cash equivalents at the end of the period were $213,002,000, up from $194,190,000 at the end of the same period in 2022[36] - Net cash provided by operating activities increased by $9.7 million year-over-year, totaling $98.9 million for the six months ended June 30, 2023[212] - Net cash used in investing activities increased by $26.9 million, primarily due to capital expenditures related to new developments[214] Dividends and Share Repurchase - The company paid cash dividends of $50,459,000 during the six months ended June 30, 2023, compared to $40,255,000 in the same period of 2022, reflecting an increase of approximately 25%[36] - The company declared a cash dividend of $0.245 per common share payable on May 15, 2023[100] - The company declared a cash dividend of $0.245 per common share in April and July 2023, maintaining a consistent dividend policy[192][193] - The company authorized a share repurchase program of up to $100 million through May 31, 2025, with no shares repurchased in the first half of 2023[103] Investments and Developments - Additions to rental property for the six months ended June 30, 2023, were $71,830,000, significantly higher than $25,717,000 in the same period of 2022[36] - The company is developing a new outlet center in Nashville, estimated to cost between $143 million and $147 million, with $89.3 million incurred to date and projected to open in October 2023[69] - Capital expenditures for new outlet center developments and expansions increased by $40.2 million to $58.8 million in 2023 from $18.6 million in 2022[198] Joint Ventures - The company experienced a decrease in equity in earnings of unconsolidated joint ventures, reporting a loss of $3,641,000 for the six months ended June 30, 2023, compared to a loss of $4,740,000 in the same period of 2022[36] - The total assets of unconsolidated joint ventures as of June 30, 2023, were $375.227 million, compared to $388.735 million as of December 31, 2022[76] - For the six months ended June 30, 2023, net income from unconsolidated joint ventures was $7.442 million, down from $9.548 million in the same period of 2022[77] Ratings and Financial Health - Fitch Ratings assigned a 'BBB' long-term issuer default rating to the Company in May 2023, resulting in a 25 basis points reduction in the pricing margin on unsecured lines of credit and term loans[86] - The company believes its balance sheet is financially sound, but acknowledges economic uncertainty due to rising interest rates and inflation[222] - The company anticipates sufficient cash to fund operating expenses, debt service obligations, and dividends in both the short and long term[220]