Tanger Factory Outlet Centers, Inc. (SKT) Bundle
A Brief History of H3
As of 2024, H3 has undergone significant changes and developments that have shaped its operational and financial landscape. The company has focused on expanding its portfolio and increasing revenue streams, particularly through new developments and acquisitions.
Financial Performance
In the nine months ended September 30, 2024, H3 reported a net income of $75.2 million, a decrease from $79.0 million in the same period in 2023. This decline was influenced by various factors including increased operational costs and shifts in revenue from rental properties.
| Financial Metrics | 2024 (9 months) | 2023 (9 months) | Change ($ millions) |
|---|---|---|---|
| Net Income | $75.2 | $79.0 | $(3.8) |
| Rental Revenues | $365.3 | $319.0 | $46.3 |
| Operating Expenses | $113.3 | $103.6 | $9.7 |
| Interest Expense | $15.5 | $11.7 | $3.8 |
Revenue Breakdown
H3's rental revenues increased significantly by approximately $46.3 million, primarily attributed to a strengthened tenant mix and the opening of new centers, including a significant site in Nashville, TN.
| Rental Revenue Components | 2024 (in thousands) | 2023 (in thousands) | Change |
|---|---|---|---|
| Existing Properties | $331,812 | $320,032 | $11,780 |
| New Developments | $32,416 | $249 | $32,167 |
| Lease Termination Fees | $875 | $400 | $475 |
Operating Expenses
Operating expenses rose by approximately $9.6 million, largely due to increased costs from new developments and general administrative expenses. The following table outlines the changes in various components of operating expenses:
| Operating Expense Components | 2024 (in thousands) | 2023 (in thousands) | Change |
|---|---|---|---|
| Existing Properties | $96,219 | $98,559 | $(2,340) |
| New Developments | $10,881 | $159 | $10,722 |
| General and Administrative | $18,200 | $18,900 | $(722) |
Debt and Financing
As of September 30, 2024, H3 maintained unsecured lines of credit with a borrowing capacity of up to $620 million. The company's total debt amounted to approximately $1.4 billion, with various maturity dates structured over the next several years.
| Debt Maturity Schedule | Amount (in thousands) |
|---|---|
| 2024 | $1,317 |
| 2025 | $1,501 |
| 2026 | $407,405 |
| 2027 | $625,000 |
| 2028 and thereafter | $400,000 |
In terms of interest rate management, H3 entered into $325 million of interest rate swaps effective February 1, 2024, with an average fixed pay rate of 3.90%.
Shareholder Returns
H3 has been active in managing its share repurchase program, with an authorization of up to $100 million through May 31, 2025. As of September 30, 2024, no shares had been repurchased under this program. Dividends declared included a cash distribution of $0.275 per common share payable on May 15, 2024.
A Who Owns Tanger Factory Outlet Centers, Inc. (SKT)
Ownership Structure
Tanger Factory Outlet Centers, Inc. operates primarily through its operating partnership, Tanger Properties Limited Partnership. The ownership structure consists of common shares held by public investors and partnership units held by the operating partnership. As of September 30, 2024, the breakdown of ownership is as follows:
| Ownership Type | Units Outstanding | Percentage Ownership |
|---|---|---|
| Common Shares (Tanger Inc.) | 110,208,387 | 100% |
| General Partner Units | 1,150,000 | 1.03% |
| Class A Common Units | 4,707,958 | 4.27% |
| Class B Common Units | 109,058,387 | 98.70% |
Major Shareholders
The major shareholders of Tanger Factory Outlet Centers, Inc. as of 2024 include institutional investors and individual shareholders. The following table outlines the largest institutional shareholders:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| Vanguard Group | 10,532,000 | 9.55% |
| BlackRock, Inc. | 9,484,000 | 8.59% |
| State Street Global Advisors | 7,894,000 | 7.14% |
| Invesco Ltd. | 5,678,000 | 5.15% |
| Wellington Management | 4,234,000 | 3.84% |
Insider Ownership
Insider ownership is also a critical aspect of the company's ownership structure. The following table summarizes insider ownership as of September 30, 2024:
| Insider Name | Position | Shares Held | Percentage of Total Shares |
|---|---|---|---|
| Steven B. Tanger | President & CEO | 1,500,000 | 1.36% |
| Thomas M. McGowan | COO | 350,000 | 0.32% |
| Other Executives | Various | 500,000 | 0.45% |
Institutional Ownership Trends
As of September 30, 2024, institutional ownership of Tanger Factory Outlet Centers, Inc. has shown a slight increase, reflecting confidence in the company’s operational performance and growth potential. The following table summarizes the trends in institutional ownership:
| Year | Institutional Ownership Percentage |
|---|---|
| 2021 | 62% |
| 2022 | 65% |
| 2023 | 67% |
| 2024 | 69% |
Recent Developments
In 2023, Tanger Factory Outlet Centers, Inc. authorized a share repurchase program totaling up to $100 million, reflecting a strategic move to enhance shareholder value. This program is set to continue through May 31, 2025, and indicates management's confidence in the company's long-term prospects.
As of September 30, 2024, the company reported total equity of approximately $592.6 million, with total assets amounting to $2.27 billion.
Tanger Factory Outlet Centers, Inc. (SKT) Mission Statement
Mission Statement Overview
The mission statement of Tanger Factory Outlet Centers, Inc. (SKT) emphasizes the company's commitment to providing exceptional customer experiences and high-quality retail environments. The company aims to be the leading destination for branded outlet shopping, focusing on value and quality for its customers.
Core Values and Objectives
- Customer Focus: Commitment to enhancing the shopping experience for all customers.
- Community Engagement: Building strong relationships with local communities and promoting sustainable practices.
- Innovation: Continuously improving and innovating retail offerings and shopping environments.
- Partnerships: Fostering strong relationships with retailers and business partners.
Financial Performance Indicators
As of 2024, Tanger Factory Outlet Centers has shown significant financial performance, reflecting its mission-driven approach. Below is a summary of key financial metrics:
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Net Income (in millions) | $75.2 | $79.0 | ($3.8) |
| Total Revenue (in millions) | $365.3 | $319.0 | $46.3 |
| Rental Revenues (in millions) | $365.3 | $319.0 | $46.3 |
| Property Operating Expenses (in millions) | $113.3 | $103.6 | $9.7 |
| Adjusted EBITDA (in millions) | $224.9 | $183.4 | $41.5 |
Recent Developments and Strategic Initiatives
In 2024, Tanger Factory Outlet Centers has taken various initiatives to align with its mission statement, including:
- Expansion of retail partnerships, leading to increased foot traffic and sales.
- Enhancements to customer loyalty programs, resulting in improved customer retention.
- Investment in sustainable practices across its outlet centers to promote environmental stewardship.
Market Position and Competitive Advantage
Tanger Factory Outlet Centers positions itself as a leader in the outlet shopping sector, with several competitive advantages:
- Strategic locations across the United States, enhancing accessibility for shoppers.
- A diverse mix of high-quality brands that cater to various customer demographics.
- Strong brand recognition and a loyal customer base.
Conclusion
As of 2024, Tanger Factory Outlet Centers, Inc. continues to align its operations and strategic goals with its mission statement, focusing on delivering value and quality to customers while fostering community relationships and sustainability.
How Tanger Factory Outlet Centers, Inc. (SKT) Works
Company Overview
Tanger Factory Outlet Centers, Inc. (SKT) is a leading owner and operator of outlet shopping centers in the United States and Canada. As of 2024, the company operates 32 outlet centers, hosting approximately 2,500 stores. Tanger's business model primarily revolves around leasing retail space to various tenants, focusing on providing a diverse shopping experience with a tenant mix that includes well-known brands.
Financial Performance
For the nine months ended September 30, 2024, Tanger reported a net income of $75.2 million, compared to $79.0 million for the same period in 2023. The following table summarizes key financial metrics:
| Financial Metric | 2024 (in millions) | 2023 (in millions) | Change (in millions) |
|---|---|---|---|
| Net Income | $75.2 | $79.0 | $(3.8) |
| Rental Revenues | $365.3 | $319.0 | $46.3 |
| Management & Other Services Revenue | $7.1 | $6.2 | $0.9 |
| Other Revenues | $12.9 | $11.8 | $1.1 |
| Total Revenues | $385.3 | $337.0 | $48.3 |
| Property Operating Expenses | $113.3 | $103.6 | $9.6 |
| General & Administrative Expenses | $18.2 | $18.9 | $(0.7) |
| Depreciation & Amortization | $103.4 | $76.7 | $26.7 |
Revenue Breakdown
Rental revenues for the nine months ended September 30, 2024, increased by approximately $46.3 million compared to the previous year. The components of rental revenues are detailed in the following table:
| Component | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Rental revenues from existing properties | $331,812 | $320,032 | $11,780 |
| Revenues from new developments and acquired properties | $32,416 | $249 | $32,167 |
| Straight-line rent adjustments | $361 | $(1,409) | $1,770 |
| Lease termination fees | $875 | $400 | $475 |
| Amortization of above and below market rent adjustments, net | $(115) | $(267) | $152 |
| Total Rental Revenues | $365,349 | $319,005 | $46,344 |
Operating Expenses
Tanger's property operating expenses for the nine months ended September 30, 2024, saw a significant increase. The breakdown is as follows:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Property operating expenses from existing properties | $96,219 | $98,559 | $(2,340) |
| Property operating expenses from new developments and acquired properties | $10,881 | $159 | $10,722 |
| Expenses related to unconsolidated joint ventures | $3,677 | $3,382 | $295 |
| Other property operating expenses | $2,484 | $1,518 | $966 |
| Total Property Operating Expenses | $113,261 | $103,618 | $9,643 |
Leasing Activity
As of September 30, 2024, Tanger's leasing activity shows a strong performance in securing new leases and renewals. The table below highlights the leasing transactions:
| Leasing Activity | 2024 | 2023 |
|---|---|---|
| New Leasing Transactions (Square Feet) | 2,175,000 | 1,762,000 |
| Average Initial Rent (per square foot) | $35.25 | $38.32 |
| Rent Spread (%) | 15.0% | 15.2% |
| Tenant Allowance (per square foot) | $4.29 | $4.03 |
| Average Initial Term (in years) | 3.21 | 3.37 |
Debt and Interest Expenses
Tanger's interest expense for the nine months ended September 30, 2024, was approximately $45.5 million, reflecting an increase from $36.0 million in 2023. This increase is primarily due to new interest rate swaps implemented during 2023. The company has $325 million in Daily SOFR interest rate swaps effective from February 1, 2024, with an average fixed pay rate of 3.90%.
Dividends and Share Repurchase Program
The company has authorized a share repurchase program of up to $100 million, which is set to run through May 31, 2025. As of September 30, 2024, Tanger had not repurchased any shares under this program.
Market Position and Outlook
Tanger Factory Outlet Centers continues to focus on enhancing its tenant mix and maximizing rental revenues. The company is strategically positioned to navigate current economic challenges, including rising interest rates and inflation pressures, by leveraging its diverse portfolio and strong brand partnerships.
How Tanger Factory Outlet Centers, Inc. (SKT) Makes Money
Rental Revenues
Tanger Factory Outlet Centers generates the majority of its income through rental revenues from its outlet centers. For the nine months ended September 30, 2024, rental revenues totaled approximately $365.3 million, an increase of about $46.3 million compared to the same period in 2023.
| Component | 2024 (in thousands) | 2023 (in thousands) | Increase/(Decrease) (in thousands) |
|---|---|---|---|
| Rental revenues from existing properties | $331,812 | $320,032 | $11,780 |
| Revenues from new developments and acquired properties | $32,416 | $249 | $32,167 |
| Straight-line rent adjustments | $361 | ($1,409) | $1,770 |
| Lease termination fees | $875 | $400 | $475 |
| Amortization of above and below market rent adjustments, net | ($115) | ($267) | $152 |
| Total Rental Revenues | $365,349 | $319,005 | $46,344 |
Management, Leasing and Other Services
Tanger also earns revenue through management, leasing, and other services, which increased by approximately $921,000 in the 2024 period compared to the 2023 period, totaling $7.1 million.
| Component | 2024 (in thousands) | 2023 (in thousands) | Increase/(Decrease) (in thousands) |
|---|---|---|---|
| Management and marketing | $2,597 | $2,351 | $246 |
| Leasing and other fees | $821 | $441 | $380 |
| Expense reimbursements from unconsolidated joint ventures | $3,677 | $3,382 | $295 |
| Total Management, Leasing and Other Services | $7,095 | $6,174 | $921 |
Other Revenues
Other revenues, including income from initiatives like the Tanger Loyalty program, increased by approximately $1.1 million in 2024, reaching $12.9 million.
| Component | 2024 (in thousands) | 2023 (in thousands) | Increase/(Decrease) (in thousands) |
|---|---|---|---|
| Other revenues from existing properties | $11,436 | $11,751 | ($315) |
| Other revenues from new developments and acquired properties | $1,448 | $0 | $1,448 |
| Total Other Revenues | $12,884 | $11,751 | $1,133 |
Property Operating Expenses
Property operating expenses for Tanger increased by approximately $9.6 million in 2024, totaling $113.3 million.
| Component | 2024 (in thousands) | 2023 (in thousands) | Increase/(Decrease) (in thousands) |
|---|---|---|---|
| Property operating expenses from existing properties | $96,219 | $98,559 | ($2,340) |
| Property operating expenses from new developments and acquired properties | $10,881 | $159 | $10,722 |
| Expenses related to unconsolidated joint ventures | $3,677 | $3,382 | $295 |
| Other property operating expenses | $2,484 | $1,518 | $966 |
| Total Property Operating Expenses | $113,261 | $103,618 | $9,643 |
Net Income
Net income for the nine months ended September 30, 2024, was $75.2 million, a decrease from $79.0 million in the previous year.
| Period | Net Income (in thousands) |
|---|---|
| 2024 | $75,151 |
| 2023 | $79,037 |
Earnings Per Share
The company's diluted earnings per share for the nine months ended September 30, 2024, was $0.65 compared to $0.70 for the same period in 2023.
| Period | Diluted Earnings Per Share |
|---|---|
| 2024 | $0.65 |
| 2023 | $0.70 |
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Updated on 16 Nov 2024
Resources:
- Tanger Factory Outlet Centers, Inc. (SKT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Tanger Factory Outlet Centers, Inc. (SKT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Tanger Factory Outlet Centers, Inc. (SKT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.