Tanger Reports Solid Q3, Raises 2025 Outlook

Tanger, citing sales momentum, recent property acquisitions, and a more diversified tenant mix, reported a strong third quarter, prompting the company to raise guidance for 2025.

“The performance was good across all of our centers,” Stephen Yalof, president and chief executive officer, told WWD. “We have a really strong portfolio today. We have sold off some underperforming centers and the new centers we acquired over the last few years are really contributing.

“We are optimistic about the holiday outlook,” Yalof added.

For the third quarter ended Sept. 30, net income available to common shareholders was 28 cents per share, or $31.8 million, compared to 22 cents per share, or $24.6 million, for the prior-year period.

Funds from operations, or FFO, available to common shareholders was 60 cents per share, or $71.1 million, compared to 54 cents a share, or $62.7 million, for the prior year period.

Core funds from operations available to common shareholders was 60 cents per share, or $71.1 million, compared to 54 cents per share, or $62.7 million, for the prior-year period.

Based on the strong performance and market conditions, Tanger raised its guidance for diluted FFO per share to $2.28 to $2.32, from its previous forecast of $2.24 to $2.31 for the year ending Dec. 31. The guidance for same center net operating income from 3.5 percent to 4.3 percent is a 63 basis point increase at the midpoint.

Based on the success of the early selling initiatives for the back-to-school season, Tanger launched everyday Black Friday sales on Nov. 1, and has been promoting them through various channels including social media, digital and conventional means such as direct mailings in certain markets to get people into Tanger’s centers earlier.

“The holiday decor is up. The holiday music is being played in our centers, and we had a wonderful Halloween,” Yalof said Tuesday, just after Tanger’s third-quarter results were released.

He also mentioned that several brands continue to aggressively seek space in Tanger centers, citing Victoria’s Secret, Ulta, Rhone, Shake Shack and Tecovas, to name a few.

“We remain very active in the acquisitions market,” Yalof said, citing the company’s “strong balance sheet and strong team,” as spurring the hunt for properties. Through acquisitions, three lifestyle centers and three outlet centers were added in the past couple of years.

“The successful execution of our strategic plan delivered another quarter of strong financial and operating results, contributing to an increase in our full-year guidance,” said Yalof, in his prepared statement.

“We are seeing robust tenant demand with record leasing volume and continued growth from both existing and new tenants, including additional restaurants, entertainment destinations, and nontraditional outlet retailers. Our digital and on-center marketing initiatives are accelerating sales momentum and engaging customers across a wider demographic spectrum. We also advanced our strategic external growth with the acquisition of Legends Outlets, rebranded as Tanger Kansas City at Legends, representing the sixth center added to our portfolio over the past two years.

“We are well-positioned to unlock additional value for our stakeholders through organic growth and selectively acquiring and operating best-in-class open-air retail assets, backed by a strong balance sheet that provides liquidity and flexibility.”

In September 2025, Tanger completed the acquisition of Legends Outlets, a 690,000-square-foot open-air, outlet center in Kansas City, Kan., for $130 million. The company indicated that it used available liquidity and a $115 million commercial mortgage-backed security loan that matures in November 2027 for the acquisition. In conjunction with the closing of the acquisition, Tanger settled approximately $70 million of previously issued forward equity. The center was rebranded as Tanger Kansas City at Legends, and is Kansas’ only outlet center. It serves as the retail anchor of Village West, considered the state’s top tourist destination. Management estimates the center to deliver an 8 percent return during the first year, with potential for additional investment and growth over time.”

The Greensboro, N.C.-based Tanger has a portfolio of 38 outlet centers and three open-air lifestyle centers covering 16 million square feet in 22 states and Canada.

In other Tanger results, occupancy was 97.4 percent on Sept. 30, 2025, compared to 96.6 percent on June 30, 2025 and 97.4 percent on Sept. 30, 2024. On a same center basis, occupancy was 97.6 percent on Sept. 30, 2025, compared to 96.6 percent on June 30, 2025 and 97.5 percent on Sept. 30, 2024. The same center portfolio excludes The Promenade at Chenal, Pinecrest, and Tanger Kansas City at Legends properties, which were acquired in the last 12 months, and the center in Howell, Mich., which was sold.

Average tenant sales per square foot was $475 for the 12 months ended Sept. 30, 2025 compared to $465 for the 12 months ended June 30, 2025, and $438 for the 12 months ended Sept. 30, 2024.