Tanger Factory Outlet Centers Reports Strong Q4 Performance and Outlines Expansion Plans for 2024
Tanger Factory Outlet Centers, Inc. (NYSE: SKT) has wrapped up an impressive year with a robust fourth-quarter performance in 2023. The company saw a remarkable 5.4% increase in same-center net operating income (NOI) for the quarter, and a solid 6.2% improvement for the full year. This growth can be attributed to a surge in leasing activity and positive rent spreads, according to the company.
One of the key drivers behind Tanger's success is its strategy of elevating tenant and brand quality. In line with this approach, the company plans to add new centers in popular locations such as Nashville, Asheville, and Huntsville in 2024. By doing so, Tanger aims to enhance its tenant mix and solidify its presence in these thriving markets.
Tanger's financial performance has also been impressive. The company's Core Funds From Operations (FFO) for the year reached $1.96 per share, surpassing market predictions. This demonstrates Tanger's commitment to stability and shareholder returns.
Looking ahead, Tanger has an optimistic outlook for 2024. The company expects its Core FFO per share to range between $2.02 and $2.10, with projected same-center NOI growth of 2% to 4%. Despite concerns about higher lease expirations in the coming year, Tanger is confident in achieving positive leasing spreads.
Another key aspect of Tanger's strategy is to diversify its tenant mix. The company aims to attract luxury retailers and focus more on the health, wellness, and food and beverage categories. By doing so, Tanger aims to enhance the shopping experience for its customers and drive revenue growth.
Tanger's strong performance has also been reflected in its stock price total return over the past year. The company has gained significant investor confidence, further solidifying its position as a top player in the market.
Tanger remains committed to its leasing momentum and asset management focus in order to achieve organic growth and a productive tenant mix. The company will continue to work towards delivering value, fostering strong tenant relationships, and maximizing investor returns.
With a promising year ahead and expansion plans in place, Tanger Factory Outlet Centers is well-positioned to maintain its stronghold in the industry.
Analyst comment
Positive news. Tanger Factory Outlet Centers, Inc. concluded a strong year with a solid Q4 performance, driven by leasing activity and positive rent spreads. They plan to expand their footprint and enhance tenant and brand quality. The company’s financial strategy focuses on stability and shareholder returns. The outlook for 2024 is optimistic, with expected growth in core FFO per share and same-center NOI. Tanger aims to diversify tenant mix and prioritize luxury retailers and health, wellness, and food and beverage categories. The stock has shown strong investor confidence, and Tanger plans to continue leasing momentum and asset management focus for organic growth and a diverse tenant mix. Investor returns are a priority.
