Second Quarter 2026
Filed Aug 4, 2026Tanger Reports Second Quarter Results and Increases 2026 Guidance
Second-quarter net income, FFO, Core FFO, Same Center NOI, tenant sales per square foot, and leasing spreads improved from the prior-year period. Occupancy was unchanged year over year but declined sequentially as the Company strategically recaptured space, while the release announced increased 2026 guidance without providing the underlying figures in the supplied text.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income available to common shareholdersGAAP | $33.0 million | – | – |
| Net income available to common shareholders per shareGAAP | $0.29 per share | – | – |
| FFO available to common shareholdersnon-GAAP | $77.1 million | – | – |
| FFO available to common shareholders per sharenon-GAAP | $0.64 per share | – | – |
| Core FFO available to common shareholdersnon-GAAP | $77.1 million | – | – |
| Core FFO available to common shareholders per sharenon-GAAP | $0.64 per share | – | – |
| Year-to-date net income available to common shareholdersGAAP | $61.0 million | – | – |
| Year-to-date net income available to common shareholders per shareGAAP | $0.53 per share | – | – |
| Year-to-date FFO available to common shareholdersnon-GAAP | $147.5 million | – | – |
| Year-to-date FFO available to common shareholders per sharenon-GAAP | $1.23 per share | – | – |
| Year-to-date Core FFO available to common shareholdersnon-GAAP | $147.5 million | – | – |
| Year-to-date Core FFO available to common shareholders per sharenon-GAAP | $1.23 per share | – | – |
| Total portfolio occupancyother | 96.6% | – | – |
| Same center occupancyother | 96.6% | – | – |
| Same Center NOI, second quarternon-GAAP | $106.9 million | – | 3.5% |
| Same Center NOI, first halfnon-GAAP | $207.4 million | – | 3.1% |
| Average tenant sales per square footother | $487 | – | – |
| Same center average tenant sales per square footother | $489 | – | – |
| Occupancy cost ratioother | 9.7% | – | – |
| Lease termination fees from tenants, second quarterother | $636,000 | – | – |
| Lease termination fees from tenants, first halfother | $2.8 million | – | – |
| Renewed or re-tenanted leases executedother | 652 leases, totaling 3.3 million square feet | – | – |
| Blended average rental rate spreadsother | 10.5% on a cash basis | – | – |
| Re-tenanted rent spreadsother | 28.4% | – | – |
| Renewal rent spreadsother | 7.7% | – | – |
| Renewals executed or in process for space scheduled to expire during 2026other | 70% | – | – |
| Net debt to Adjusted EBITDArenon-GAAP | 4.7x | – | – |
| Interest coverage rationon-GAAP | 4.5x | – | – |
What drove it
- Same Center NOI increased 3.5% to $106.9 million for the second quarter of 2026.
- Average tenant sales per square foot was $487 for the twelve months ended June 30, 2026, reflecting the Company’s execution of its strategy to remerchandise, replace less productive tenants, and evolve its portfolio.
- Blended average rental rate spreads were 10.5% on a cash basis for leases executed for 3.0 million square feet of comparable space.
- In May 2026, the Company completed the acquisition of Levis Commons Town Center, a 301,000-square-foot open-air lifestyle center, for approximately $60 million using cash on hand and available liquidity.
- Management expects Levis Commons Town Center to deliver a first-year return of approximately 8.5%, with potential for additional growth over time.
Concerns
- Total portfolio occupancy was 96.6% on June 30, 2026, compared with 97.0% on March 31, 2026.
- The sequential occupancy change reflects the timing of strategic backfills of vacancy from a recent tenant bankruptcy.
- The Company acquired five Saks Off 5th leases for $4.3 million and recorded lease termination expense of $1.3 million, which is included in property operating expenses and excluded from Same Center NOI.
- The Company fully accelerated the non-cash below market rent balance on an acquired Saks Off 5th lease of $2.2 million, which is included in market rent adjustments, a component of GAAP rental revenues.
What to watch
- Execution of strategic backfills following the recent tenant bankruptcy and the resulting occupancy trend.
- Conversion of the 70% of space scheduled to expire during 2026 for which renewals were executed or in process as of June 30, 2026.
- Performance and additional growth potential from the Levis Commons Town Center acquisition.
- Settlement timing of the forward sale agreements for 0.6 million common shares and use of the related approximately $24 million of anticipated gross proceeds.
- Funding and deployment of the additional $100 million available under the delayed draw feature associated with the unsecured term loan due December 2030.
Balance sheet and cash flow
- The Company ended the second quarter of 2026 with $1 billion of available liquidity.
- The Company fully repaid the $5 million secured mortgage debt for its Atlantic City, New Jersey property during the second quarter of 2026.
- The Company entered into forward sale agreements for 0.6 million common shares under the ATM Offering Program at an initial forward sale price of $40.50 per share, representing anticipated total gross proceeds of approximately $24 million.
- As of June 30, 2026, the Company had approximately $376 million of common shares remaining available for sale under the ATM Offering Program.
- In July 2026, the Company drew the full $50 million available under the delayed draw feature associated with the 2033 Term Loan, increasing total principal outstanding under the 2033 Term Loan from $150 million to $200 million.
- The Company had approximately $1.0 billion of immediate liquidity, including $355 million of cash and cash equivalents, short-term investments, and delayed draw term loan commitments, full availability on the Company’s $620 million unsecured lines of credit, and $24 million of proceeds available from the future settlement of forward sale agreements under the ATM Offering Program.
Analysis
Tanger reported improved second-quarter profitability and real estate operating performance. Net income available to common shareholders was $33.0 million, or $0.29 per share, compared with $29.9 million, or $0.26 per share, in the prior-year period. FFO and Core FFO each were $77.1 million, or $0.64 per share, compared with $68.6 million, or $0.58 per share. First-half net income, FFO, and Core FFO also exceeded the respective prior-year figures disclosed in the release.
Portfolio operating metrics point to continued demand and pricing strength. Same Center NOI increased 3.5% to $106.9 million in the quarter, while average tenant sales per square foot reached $487, compared with $465 for the twelve months ended June 30, 2025. Leasing activity included 652 renewed or re-tenanted leases totaling 3.3 million square feet, and comparable-space blended cash rental rate spreads were 10.5%, including 28.4% for re-tenanted space and 7.7% for renewals.
Occupancy was stable versus the prior year but lower sequentially. Total portfolio occupancy was 96.6% on June 30, 2026, unchanged from June 30, 2025 and below 97.0% on March 31, 2026. Management attributed the sequential decline to strategic backfills of vacancy from a recent tenant bankruptcy. The occupancy cost ratio held at 9.7% across each disclosed twelve-month period, while lease termination fees rose to $636,000 in the quarter from $272,000 in the prior-year period.
Capital deployment centered on external growth and liquidity. Tanger acquired Levis Commons Town Center for approximately $60 million and expects a first-year return of approximately 8.5%. It also acquired five Saks Off 5th leases for $4.3 million, alongside $1.3 million of lease termination expense and a $2.2 million acceleration of a non-cash below-market-rent balance. The Company reported approximately $1.0 billion of immediate liquidity, net debt to Adjusted EBITDAre of 4.7x, and drew $50 million under the 2033 Term Loan in July.
The release states that Tanger increased 2026 guidance, but the supplied filing text does not include the guidance table or any specific guided ranges. The principal reported items to monitor are the pace of occupancy recovery through strategic backfills, delivery of the disclosed leasing spreads, contribution from Levis Commons Town Center, and the use of available liquidity and delayed-draw financing.
Management, verbatim
Tanger’s strong execution drove another quarter of solid financial and operating performance, demonstrating our differentiated leasing, operating, and marketing platforms and effective financial strategies.
Stephen Yalof, President and Chief Executive Officer
Our disciplined external growth strategy continued with the accretive acquisition of Levis Commons Town Center, the seventh open-air and fourth lifestyle center added in the past three years.
Stephen Yalof, President and Chief Executive Officer
Not in the filing
stated, not guessed- Total revenue and revenue comparisons
- Segment revenue and segment operating results
- GAAP gross profit or gross margin
- GAAP operating income and operating margin
- GAAP total net income attributable to the Company
- Cash flow from operations
- Free cash flow
- Dividends and share repurchases
- Total debt and debt maturity schedule
- Detailed 2026 guidance figures, including the increased guidance ranges
- Prior guidance outlook for comparison
- Interest coverage ratio prior-year and prior-quarter comparison
- Total portfolio occupancy percentage change
- GAAP EPS explicitly labeled as EPS in the supplied text
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.