Tanger (SKT) 7 Nov 24 2024 Q3 Earnings call transcript
Tanger Inc. recently held its Third Quarter 2024 earnings call, revealing a robust financial performance and a confident outlook for the future. The company reported a 8% increase in core FFO per share to $0.54, driven by a 4.3% rise in same-center NOI. This growth is a testament to Tanger's strategic efforts in driving rents, attracting new retailers, and operating more efficiently.
A Focus on Customer Experience and Adaptation
The success of Tanger's strategy is evident in the sustained demand for space in its centers. The company has been successful in curating a diverse mix of retailers and restaurants that resonate with shoppers, while effectively marketing to both on-center and off-center audiences through digital channels. This customer-centric approach has been crucial in maintaining average tenant sales productivity at $438 per square foot for the trailing 12 months.
Strategic Expansion and Renewed Confidence
Tanger's strategic initiatives have not gone unnoticed by investors. The company has achieved an 11th consecutive quarter of positive rent spreads, demonstrating its ability to attract tenants and maintain strong relationships with existing ones. This is particularly impressive given the challenges posed by recent hurricanes, which saw several Tanger centers temporarily close, but quickly rebounded with the support of the community and effective crisis management.
Looking Ahead
Tanger's confidence in its future growth prospects is reflected in its increased guidance for the year. The company now expects core FFO growth of 7% to 9%, a significant improvement from its previous estimate. This optimism is underpinned by strong leasing activity, a well-positioned balance sheet, and a clear focus on enhancing its portfolio.
A Strong Team and a Bright Future
The addition of Sonia Syngal to the Tanger Board is a strategic move that will strengthen the company's capabilities as it navigates the evolving retail landscape. With a focus on growing the value of its open air centers and exploring external opportunities, Tanger is well-positioned to capitalize on the robust demand for space in its centers.
Investor Takeaways
Tanger's strong financial performance and strategic outlook provide a positive signal for investors. The company's ability to adapt to changing consumer preferences and market conditions, coupled with its focus on enhancing the shopper experience, bodes well for its future growth. As Tanger continues to execute its strategic plan, investors can look forward to sustained financial performance and growth opportunities.