Tanger Q1 2025 presentation: Portfolio expansion drives growth amid strong leasing

Introduction & Market Context

Tanger Inc. (NYSE:SKT) showcased its continued growth strategy and solid financial performance in its April 30, 2025 management presentation. The company, with a 44-year history and 32 years as a publicly traded entity, has positioned itself as a leader in the outlet retail space while strategically expanding into open-air lifestyle centers.

With a market capitalization of $4.0 billion and total enterprise value of $5.7 billion, Tanger continues to leverage its strong balance sheet to fuel expansion. The company’s stock closed at $31.51 on April 30, 2025, near its 52-week high of $37.57, reflecting investor confidence in its growth trajectory.

As shown in the following overview of Tanger’s portfolio and financial position:

Strategic Initiatives

Tanger’s growth strategy rests on three key pillars: internal growth through strong same-center NOI performance, real estate intensification to enhance value from existing assets, and external growth through selective acquisitions and development. The company has been particularly active in expanding its portfolio beyond traditional outlet centers.

The following slide illustrates Tanger’s strategic approach to growth:

Recent acquisitions have significantly expanded Tanger’s footprint, with the company adding several properties to its portfolio between 2022 and 2025, including Tanger Outlets Palm Beach, Tanger Outlets Nashville, Tanger Outlets Asheville, Bridge Street Town Centre, The Promenade at Chenal, and Pinecrest. These acquisitions align with Tanger’s external growth strategy of investing in market-dominant centers.

The company’s external growth strategy is clearly visualized in this slide:

Tanger’s portfolio now encompasses 41 retail centers totaling 16.2 million square feet across the United States, with 93% of outlet square footage located in leading tourist destinations or top 50 metropolitan statistical areas. The geographic distribution of these properties provides Tanger with broad market exposure and resilience.

The following map illustrates Tanger’s nationwide presence:

Quarterly Performance Highlights

Tanger reported strong operational metrics for Q1 2025, maintaining high occupancy rates and achieving impressive leasing spreads. The company’s same-center occupancy stood at 95.8%, while total portfolio occupancy reached 96.5%. This represents a slight decrease from the 97.4% occupancy reported in Q3 2024, potentially due to strategic tenant replacements and portfolio adjustments.

Particularly noteworthy is Tanger’s leasing performance, with blended cash rent spreads of 14.1% for executed comparable leases. This exceeds the company’s previous projection from Q3 2024, when management anticipated spreads would reach low double digits by 2025. The company executed 2.5 million square feet of leases in the last 12 months, demonstrating strong demand for its retail spaces.

The following slide provides a comprehensive view of Tanger’s current operating metrics:

Tanger has maintained consistently high occupancy rates over the past decade, as illustrated in this historical performance chart:

The company continues to diversify its tenant mix, adding new and expanded brands across various categories including food, beverage, entertainment, footwear, apparel, accessories, home goods, and beauty. This strategy aims to attract a younger, more affluent demographic while enhancing the shopping experience. Top tenant brands by annualized base rent include Athleta, Ann Taylor, Coach (NYSE:TPR), Under Armour (NYSE:UA), and Aerie.

The following visualization shows Tanger’s top tenants and their contribution to annualized base rent:

Detailed Financial Analysis

Tanger maintains a strong balance sheet with $1.7 billion in net debt against a total enterprise value of $5.7 billion. The company has $481 million of availability under unsecured lines of credit and an additional $70 million of availability from settlement of forward equity, providing ample liquidity for operations and growth initiatives.

The company’s debt structure and capital allocation are visualized here:

Tanger’s debt maturity schedule is well-managed, with an effective interest rate of 4.1% and an average maturity of 3.5 years. The company remains compliant with all debt covenants and maintains investment-grade ratings from major credit agencies.

The following slide details Tanger’s debt ratios and covenant compliance:

For 2025, Tanger has provided guidance for net income per diluted share of $0.91-$0.99 and Core FFO per diluted share of $2.22-$2.30. This represents an increase from the 2024 guidance of $2.09-$2.13 per share mentioned in the company’s Q3 2024 earnings call, indicating management’s confidence in continued growth. The company also projects same-center NOI growth of 2.0%-4.0% for 2025.

The following slide presents Tanger’s earnings performance and 2025 guidance:

Forward-Looking Statements

Looking ahead, Tanger is well-positioned to capitalize on several market trends, including post-COVID migration patterns, flexible work arrangements, and the continued appeal of physical retail experiences. The company’s upcoming lease expirations provide opportunities for further rent growth and tenant optimization, with 16% of base rent expiring in 2025 and 19% in 2026.

Tanger’s leasing strategy focuses on driving rents, diversifying tenant assortment, increasing occupancy, and activating peripheral land. On the operations front, the company aims to drive efficiencies, grow ancillary revenue, invest in sustainability, and maximize asset value.

The marketing approach has evolved to be data-driven and digital-first, with a modern loyalty program and ROI-focused spending. This aligns with the company’s efforts to attract younger, more affluent shoppers through an enhanced tenant mix and shopping experience.

Financially, Tanger remains committed to prudent balance sheet management and disciplined external growth. The company’s target net debt to EBITDA ratio of ~5-6x provides flexibility while maintaining financial discipline.

As retail continues to evolve, Tanger’s combination of outlet centers and open-air lifestyle properties offers a diversified approach to capturing consumer spending. The company’s focus on experiential retail, combined with strategic tenant selection and strong financial management, positions it well for sustainable growth in the evolving retail landscape.

Full presentation:

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