SKT - Tanger Factory Outlet Q4 results beat on strong NOI growth leasing acceleration

Tanger Factory Outlet ( NYSE: SKT ) Q4 profit and sales each surpassed average Wall Street estimates driven by robust net operating income growth and accelerating leasing momentum thanks to increased occupancy.

For 2023, the company sees core FFO of $1.81-$1.89 per share, compared with the $1.83 consensus. Same-center NOI is expected to grow by 2.0%-4.0% for the year.

"Rent spreads exceeded 10% for comparable leases executed in 2022, marking our seventh-consecutive quarter of improvement," said President and CEO Stephen Yalof. "Traffic remained steady and total gross sales were in line with last year's levels in spite of a far more promotional retail environment this holiday selling season."

Q4 core FFO per share of $0.47, topping the average analyst estimate of $0.45, was unchanged from Q3 and increased from $0.45 in the year-earlier quarter.

Revenue of $116.46M, exceeding the $109.01M consensus, rose from $111.45M in the prior quarter and from $112.09M a year before.

Same-center NOI accelerated by 5.1% to $86.5M, versus Q3's 2.4% climb, buoyed by growth in occupancy and rental rates.

Adjusted EBITDA came in at $60.33M, up from $60.09M in Q3 and from $59.53M in Q4 2021.

Occupancy was 97.0% at Dec. 31, 2022, vs. 96.5% at Sept. 30, 2022, and 95.3% at Dec. 31, 2021.

Conference call on Feb. 22 at 8:00 a.m. ET.

Earlier, Tanger Factory FFO of $0.47 beats by $0.02, revenue of $116.46M beats by $7.45M .

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