SKT - Tanger Factory Outlet boosts guidance after Q3 FFO beats on higher occupancy NOI

Tanger Factory Outlet Centers ( NYSE: SKT ) has lifted its full-year outlook Wednesday after the retail REIT's third-quarter core FFO and revenue both topped Wall Street expectations thanks to sustained net operating income growth, higher occupancy and improved rent spreads.

The company expects 2022 core FFO of $1.78-1.83 a share compared with $1.73-1.79 in the prior view. And same center NOI growth for its total portfolio (at pro rata share) is expected to grow between 3.5%-5.0% vs. 3.0%-4.5% in the previous target range.

Meanwhile, Q3 core FFO of $0.47 exceeded the average analyst estimate of $0.44 but didn't budge from the year-ago quarter.

Revenue of $111.45M at September 30, surpassing the $103M consensus, edged down from $112.47M at Sept. 30, 2021.

Expenses totaled $78.89M compared with $78.95M in Q3 of last year.

Same center NOI rose 2.4% to $82.2M, driven by growth in occupancy and rental rates in 2022.

Adjusted EBITDA was $60.09M, down from $63.17M in Q3 2021.

Occupancy was 96.5% vs. 94.4% a year before.

The company raised its common stock dividend to $0.88 a share from $0.80 a share on an annualized basis. At the same time, the board declared a quarterly cash dividend of $0.22 a share, payable on November 15 to holders of record on October 31.

Conference call on November 3 at 8:30 a.m. ET.

Earlier, Tanger Factory reports Q3 results .

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