Tanger increases its stock dividend by 10% based on strong leasing activity

Al Urbanski
Tanger CEO Stephen Yalof says leasing momentum is strong.

Tanger Factory Outlet Centers is having a good year.

Having lifted its chainwide occupancy rate to 94.9% in the first half in 2022 and seen its net operating income rise by 7.4% to $158 million for the period, the Greensboro, N.C.-based company approved a 10% increase in its annual dividend for shareholders.

Second quarter net income available to shareholders this year increased to $19.7 million, or 19 cents per share, compared to just $2.3 million, or two cents per share during the same period last year.

“We are executing permanent leases with solid rent spreads, growing our occupancy and lengthening lease terms,” said Tanger president and CEO Stephen Yalof in the company’s second quarter report. “This leasing momentum and sustained traffic levels reflect retailers' enthusiasm to be located in our centers.”

Tanger’s same-center NOI increased 7.4% to $158 million for the first half of 2022 from $147.1 million for the first half of 2021, driven by growth in occupancy and rental rates, reported the company.

Total renewed or re-tenanted leases executed by Tanger during the twelve months ended June 30, 2022 included 345 leases that accounted for 1.7 million sq. ft. of GLA. Average rents for that space increased by 4.1%, an increase of 280 basis points.

Its strong surge in operations has Tanger in expansion mode.

“In May, we broke ground on our 37th shopping center in Nashville, and we recently announced our strategic partnership at Tanger Outlets Palm Beach, which is the 38th center in our portfolio,” said Yanger.

Tanger operates outlet centers in 20 states and Canada that total approximately 14 million sq. ft. of space leased to more than 2,700 stores operated by 600-plus different brands.

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