Outlet mall firm Tanger posts rise in Q2 net income, raises 2025 guidance

Overview

• Tanger Q2 net income rises to $0.26 per share, up from $0.22 year ago

• FFO per share increases to $0.58, reflecting strong leasing activity

• The owner and operator of outlet and open-air retail shopping destinations raises full-year 2025 guidance

Outlook

• Tanger raises full-year 2025 net income guidance to $0.93-$1.00 per share

• Company increases full-year 2025 FFO guidance to $2.24-$2.31 per share

• Tanger expects Same Center NOI growth of 2.5%-4.0% for 2025

• Company cites strong leasing and marketing strategies for raised guidance

Result Drivers

• LEASING STRATEGIES - Robust leasing activity with positive rent spreads driven by addition of in-demand retailers and entertainment options

• MARKETING INITIATIVES - Enhanced marketing campaigns like Tanger Deal Days and Summer of Savings increased shopper engagement and traffic

• OCCUPANCY IMPROVEMENT - Occupancy rose to 96.6% by end of Q2, reflecting successful tenant remerchandising and leasing efforts

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the commercial reits peer group is "buy"

• Wall Street's median 12-month price target for Tanger Inc is $34.00, about 13.2% above its August 1 closing price of $29.52

• The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 32 three months ago

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