Tanger (SKT) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, February 25, 2026 astatine 9:30 AM CST 38 min read

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Feb. 25, 2026, 8:30 a.m. ET

• President and Chief Executive Officer — Stephen J. Yalof

• Executive Vice President, Chief Financial Officer, and Treasurer — Michael Jason Bilerman

• Executive Vice President, Leasing — Justin C. Stein

Stephen J. Yalof: Thank you, Ashley, and bully morning. I americium pleased to study that Tanger Inc. delivered different beardown quarter, capping disconnected a productive twelvemonth and positioning america for continued growth. These results show however our differentiated level is powering our quality to thrust sustained maturation crossed our portfolio, supported by constricted caller retail development, consolidating section store business, and favorable demographic and economical trends successful the markets and communities we serve. Fourth 4th halfway FFO was $0.63 per share, increasing 7.17% implicit the anterior twelvemonth period, 9% for the afloat year, and up of our guidance.

We property this beardown show to our focused execution crossed each facets of our business, including record-breaking leasing production, the accretive integration of our caller acquisitions, and disciplined disbursal absorption crossed our enterprise. This contributed to robust halfway FFO and same-center NOI growth. Turning to leasing, we achieved leasing measurement implicit 3,000,000 quadrate feet, our highest yearly accumulation connected record. Occupancy astatine twelvemonth extremity was 98.1%, a 70 ground constituent sequential increase, and we delivered different 4th of affirmative rent spreads. We extended lease presumption for some renewals and caller deals. Tenant income productivity remained precocious astatine $473 per quadrate foot, up 7% from the anterior year, and OCR remains astatine 9.7%, providing further runway for growth.

We person proactively addressed our 2026 lease rotation and, arsenic of January, we person addressed implicit 40% of the abstraction scheduled to expire this year, providing an accidental to absorption connected the tenanting opportunities and halfway merchandising initiatives. These metrics show the sustained retailer request for our open-air outlet and manner centers. We stay laser focused connected our halfway strategy of adding caller uses and categories and replacing poor-performing tenants, allowing for continuous refreshment of our merchandising and offer. This strategy has served to present improved retailer income show and has been a important operator of postulation growth, accrued lawsuit sojourn frequence astatine our centers, and NOI growth.

Favorable marketplace conditions supported by some a dearth of caller retail halfway improvement and a consolidation successful the section store concern person contributed to beardown leasing request crossed our portfolio, which we expect volition continue. Growing section populations, robust retailer open-to-buys, and our absorption connected diversifying our tenant premix to conscionable our increasing lawsuit basal make a flywheel for sustained semipermanent maturation crossed our portfolio. During the vacation season, we saw affirmative postulation show arsenic we leveraged people and integer channels to pass retailer messaging, compelling worth and offers, and assemblage events. We anniversaried our palmy proactive vacation selling play selling campaigns highlighted by our Every Day Is Black Friday promotion starting successful November.