Leasing demand strong at Tanger centers in Q1
Tanger has shared strong financial results and leasing metrics to start 2025.
The North Carolina-based outlet and open-air shopping center owner and operator shared its first quarter results, which revealed that occupancy remained strong, while same-center income rose.
“I am pleased to announce another quarter of strong financial and operating results, which support our recent dividend increase and forward outlook,” said Stephen Yalof, president and CEO of Tanger. “We are seeing continued momentum in our remerchandising strategy to elevate and diversify our tenant mix as we replace less productive tenants and add more desirable retailers, restaurants, and entertainment across our portfolio.”
Occupancy was 95.8% as of March 31, 2025, compared to 98.0% on Dec. 31, 2024 and 96.5% on March 31, 2024, which Tanger says is reflective of its re-merchandising strategy focused on portfolio enhancement along with the closure of seasonal tenants. On a same-center basis, occupancy was 95.9% on March 31, 2025, 98.2% on Dec. 31, 2024 and 96.8% on March 31, 2024.
Same-center net operating income, which is presented on a cash basis, increased 2.3% to $96.4 million for the first quarter of 2025 from $94.3 million for the first quarter of 2024. Tanger says this was driven by higher rental revenues, partially offset by higher snow removal costs in the first quarter of 2025 and a benefit from certain expense refunds in the first quarter of 2024.
Average tenant sales per square foot was $455 for the twelve months ended March 31, 2025 compared to $444 for the twelve months ended Dec. 31, 2024 and $437 for the twelve months ended March 31, 2024, reflecting the Tanger’s execution of its strategy to remerchandise, replace less productive tenants, and evolve its portfolio. On a same-center basis, average tenant sales per square foot was $451 for the twelve months ended March 31, 2025 compared to $444 for the twelve months ended Dec. 31, 2024 and $440 for the twelve months ended March 31, 2024.
For the total domestic portfolio, total renewed or re-tenanted leases (including leases for both comparable and non-comparable space) executed during the twelve months ended March 31, 2025 included 545 leases, totaling 2.5 million sq. ft., compared to 542 leases, totaling 2.3 million sq. ft., during the twelve months ended March 31, 2024.
Blended average rental rates were positive for the 13th consecutive quarter at 14.1% on a cash basis for leases executed for comparable space during the twelve months ended March 31, 2025. The company says the blended rent spreads are comprised of re-tenanted rent spreads of 33.2% and renewal rent spreads of 12.3%.
“We are encouraged by the consistent performance of our portfolio and the resilience of the value channel,” added Yalof. “Ongoing tenant demand and our robust leasing activity at positive spreads demonstrate the commitment our retail partners have to the Tanger platform. Given the current macroeconomic environment, we believe our strong, low-leveraged balance sheet and ample liquidity provide stability and the ability to remain opportunistic with our growth.”
In February 2025, Tanger completed the acquisition of Pinecrest, a 639,000-sq.-ft. open-air, grocery-anchored mixed-use center located in Cleveland, Ohio, for $167.0 million using cash on hand and available liquidity. Pinecrest opened in 2018 as one ofNortheast Ohio’s premier retail and entertainment destinations.
[READ MORE: Tanger acquires mixed-use center in Cleveland suburb]
In April 2025, Tanger sold a non-core center in Howell, Mich. for $17.0 million, which resulted in a non-cash impairment charge of $4.2 million recorded in the first quarter of 2025.
Tanger’s portfolio includes 37 outlet centers, one adjacent managed center, and three open-air lifestyle centers spanning over 16 million sq. ft. in 21 U.S. states and Canada.
