The Tanger (SKT) Q2 earnings are in with a solid performance and better guidance for all of 2024.
The Top Men’s Trends at the Chicago Collective 2024: Return to Classicism with Soft Tailoring, Dress Shorts, and Chic Utility, continuing to diversify its tenant mix and increase rents, posted solid second-quarter results and raised its outlook for the year.
investment trusts, rose to $60.9 million, or 53 cents per share, compared with $52.4 million, or 47 cents, in the year-ago period. Net income was essentially flat at $24.6 million, or 22 cents per share, compared with $23.9 million, or 23 cents. .Based on its performance and expectations, Tanger raised its outlook for the year and now estimates that net income will range from 85 cents to 92 cents per diluted share compared to the previous guidance of 84 cents to 92 cents a share.Funds from operations are now estimated at $2.04 to $2.11 per share, versus the previous forecast of $2.02 to $2.10 per share. Occupancy was 96.5 percent as of June 30, compared with 96.5 percent on March 31 and 97.2 percent as of June 30, 2023. “We’ve 10 consecutive quarters of positive rent spreads,” Stephen Yalof, Tanger’s president and chief executive officer, told WWD on Friday. “The way we think about retention of tenants, replacing tenants with new tenants, and right-sizing some existing tenants gives us the opportunity to grow our platform organically and drive these outsized rent increases.” The “blended average” on rents for new and renewed leases was 15 percent last quarter based on the trailing 12 months, representing a sequential increase of 220 basis points over the prior quarter, and nearly 200 basis points year-over-year. In addition to achieving organic growth, Yalof told WWD that Tanger continues to seek deals to increase the size of the portfolio, which could be through outright property acquisitions, joint venture or ground-up new development. For several seasons, Tanger been also been adding new kinds of tenants — and not just outlets. Full-price stores such as Warby Parker, Victoria’s Secret, Ulta, Sephora and Barnes & Noble are among those recently signing their first leases with Tanger. “We are now in the conversation with a number of owners and developers,” Yalof said. “We have a sizable team of individuals thinking about new development or potential acquisitions.” In the fourth quarter of last year, Tanger closed on two properties, Asheville Outlets in North Carolina as well as Bridge Street Town Centre in Huntsville, Ala., which was Tanger’s first full-price lifestyle center. In addition, Tanger Outlets Nashville, built from the ground up, opened in October 2023. All together the Greensboro, N.C.,-based firm operates 39 outlet centers and one lifestyle center.Asked about how the back-to-school season is progressing, Yalof replied: “Especially now with the economic pressures on consumers, we see a lot of back-to-school activity. It’s starting to build.” He said Tanger, “leans extremely heavily into the selling season from a marketing point of view. It starts for us as early as the Fourth of July, depending on the geography. Some schools are back in session in early August…The best comps are in the family apparel category — Gap, Old Navy, J.Crew, Aerie and American Eagle. Nike is starting to rebound and show strong comps.” Two key Tanger tenants, Rue 21 and Express, both went bankrupt this year. Rue21 was purchased out of bankruptcy by YM Inc; the owner of Charlotte Russe and Urban Planet stores in the U.S. and other retailers in Canada. Express was purchased by the Phoenix consortium composed of WHP Global, Simon Property Group, Brookfield Properties and Centennial Real Estate. “Rue 21 is an important brand in our channel. Shoppers in our centers really love it,” Yalof said. Tanger had 20 Rue21 stores, of which 18 are continuing through new leases. The other two are being replaced with “higher paying” tenants, Yalof said. More than half of the 18 Rue21 stores have reopened, and the remainder will be open in time for the holiday season, he said. “They are remodeling them. The stores look really good,” Yalof said. Express also renewed its leases with Tanger. Twenty-nine of the 30 Express units at Tanger centers are continuing “with no interruption,” Yalof said. “We have worked through these bankruptcies and the net-net is we are still increasing our same center NOI for the remainder of the year. We were able to absorb these two bankruptcies and still grow our business at a rate better than where we first guided to at the beginning of the year.” Renegotiating the Express and Rue21 leases amounted to a “give-and-take” process, Yalof said. In his prepared statement on the quarter, Yalof said, “Our team continues to execute on our strategic plan, which is translating into total rent growth including the 10th consecutive quarter of positive leasing spreads. With an elevated shopper experience that includes in-demand retailer brands, a diversified tenant mix, and more food and beverage and experiential destinations, we continue to increase the value and appeal of our open-air centers. “Tanger is well positioned to further enhance our portfolio for our shoppers and retail partners,” he said. “With our strong balance sheet and liquidity, including no significant maturities until late 2026, we have the flexibility to remain opportunistic and continue to unlock embedded value for our stakeholders.”Nicole Kidman Dazzles in White Valentino Cropped Blouse Alongside…Rihanna Debuts New Fenty x Puma Avanti Sneakers With Distressed Miu…. We use vendors that may also process your information to help provide our services. // This site is protected by reCAPTCHA Enterprise and the Google. We use vendors that may also process your information to help provide our services. // This site is protected by reCAPTCHA Enterprise and the GoogleWWD and Women's Wear Daily are part of Penske Media Corporation. © 2024 Fairchild Publishing, LLC. All Rights Reserved.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Douglas Group Raises Full-Year Guidance, To Sell DiaspoDouglas Group has raised its full-year guidance and said it is selling online pharmacy Diaspo.
Read more »
Coca-Cola raises full-year sales guidance after stronger-than-expected second quarterCoca-Cola is raising is full-year sales guidance after a stronger-than-expected second quarter.
Read more »
Coca-Cola raises full-year sales guidance after stronger-than-expected second quarterCoca-Cola is raising is full-year sales guidance after a stronger-than-expected second quarter.
Read more »
Adidas Raises Guidance as Q2 Revenue Growth Surges 11 PercentAdidas (ADDYY) Q2 Earnings 2024 earnings are in: Brand momentum and major sporting events bolstered growth at Adidas in the second fiscal quarter.
Read more »
Rolls-Royce raises profit guidance after strong first halfRolls-Royce raises profit guidance after strong first half
Read more »
Kazatomprom raises guidance following increase in H1 uranium outputNo 1 source of global mining news and opinion
Read more »