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Oct 28, 2016
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Tanger Outlets third quarter impacted by major storms, acquisitions

Published
Oct 28, 2016

Tanger Outlets on Tuesday reported its third quarter 2016 results ended on September 30, 2016.


Tanger Outlets


 
Net income for the quarter increased 56.5% to $68.5 million, or $0.72 per share, from $43.6 million, or $0.46 per share, and was impacted by a $46.3 million gain on the Tanger Outlets Savannah acquisition. The Tanger Outlets Westgate acquisition also impacted net income for the nine months ended on September 30, 2016, which increased 63.0% to $168.0 million, or $1.76 per share, compared to $101.9 million, or $1.08 per share, in 2015.
 
"During the first nine months of 2016, we continued to deliver strong internal growth, extending our record to 52 consecutive quarters, or 13 years, of consolidated portfolio same center net operating growth, and posting a year-to-date consolidated portfolio average rent spread of 20.0%. On the external growth front, we are excited to have recently broken ground on two development projects that we plan to open next year," commented Steven B. Tanger, President & Chief Executive Officer. "Our balance sheet remains a fortress. Since the end of the second quarter, we have raised $350 million of new ten-year unsecured, interest-only debt at a low fixed coupon of 3.125%. During 2016, we have converted $525 million of our debt from floating to fixed rates." he added.

Adjusted funds from operations in the third quarter increased 5.1% to $62.3 million from $59.4 million, and adjusted funds from operations for the nine months increased 7.3% to $177.5 million from $163.3 million.
 
Tanger’s consolidated portfolio was 97.4% occupied compared to 97.2% in the previous year and average tenant sales decreased 1% to $390 per square foot for the trailing twelve months ended on September 30, 2016.
 
Approximately 20% of Tanger’s consolidated portfolio was impacted by weather in the third quarter. The company’s center in Gonzalez, Louisiana was closed due to flooding in August, and in September Hurricane Hermine impacted centers in Charleston, South Carolina; two centers in Hilton Head, South Carolina; two centers in Myrtle Beach, South Carolina; Nags Head, North Carolina; and Savannah, Georgia.
 
Tanger is slated to open a new outlet center in Daytona Beach, Florida in November 2016, and has commenced construction on a new center in Fort Worth, Texas and a major expansion in Lancester, Pennsylvania, which are both slated to open in 2017.

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