With 90% of rents paid, Tanger reinstates its cash dividends

Like many retail real estate companies plagued by shutdowns during the pandemic, Tanger Factory Outlets suspended cash dividends to its shareholders. Now, with bolstered cash reserves of $80 million, the company has re-started making the quarterly payments.

"This dividend declaration reflects Tanger's strong liquidity position, with more than $80 million of cash on hand and $600 million of undrawn lines of credit," said president and CEO Stephen Yalof. “The board's confidence in our business as demonstrated by the positive traffic and rent collections trends we recently reported.”

On Jan. 5, Yalof replaced Stephen B. Yanger at the helm of Tanger. The longtime CEO now serves as the chairman of the company’s board of directors.

Outlet chains, most of which are outdoor centers with individual store entrances, have fared better than malls in returning to business during the pandemic. Tanger reported that, during the fourth quarter of 2020, traffic at its centers reached 90% of 2019 levels. It also collected 90% of rents during the period and received pre-payment of 40% of rent deferred during the crisis.

Tanger reported an occupancy rate of 92% its portfolio of 38 centers, noting that approximately 317,000 sq. ft. of space vacated by bankrupted tenants was recaptured in Q4 and that restructuring of 903,000 sq. ft. was announced by retailers during 2020.