Tanger Inc. Reports Q1 2025 Financial Results with Increased Revenues but Declining Net Income

Tanger Inc. reported its financial results for the first quarter of 2025, revealing a net income of $19.999 million, a decrease from $23.306 million in the same period last year. The company's total revenues increased to $135.363 million, up from $123.371 million, driven primarily by a rise in rental revenues, which reached $129.285 million compared to $117.809 million in the prior year. The increase in rental income was attributed to a strengthened tenant mix and higher rental rates, alongside contributions from newly acquired properties, including a center in Cleveland, Ohio.

The company experienced a notable increase in property operating expenses, which rose to $41.820 million from $35.465 million, largely due to higher costs associated with new acquisitions and increased operational activities. Additionally, an impairment charge of $4.249 million was recorded related to the Howell, Michigan outlet center, which was subsequently sold in April 2025. This impairment contributed to the overall decline in net income compared to the previous year.

Tanger Inc. continues to expand its portfolio, owning and operating 31 consolidated outlet centers and three open-air lifestyle centers, totaling approximately 13.6 million square feet of gross leasable area. The occupancy rate across its properties was reported at 96%. The company also noted that it had partial ownership interests in six unconsolidated centers, further diversifying its portfolio. The acquisition of the Cleveland center for $167 million was a significant strategic move during the quarter, enhancing its market presence.

In terms of financial health, Tanger Inc. maintained a strong balance sheet with total assets of $2.478 billion as of March 31, 2025, up from $2.381 billion at the end of 2024. The company’s total debt increased to $1.563 billion, reflecting its ongoing investments and acquisitions. The company has also declared a quarterly cash dividend of $0.2925 per common share, payable on May 15, 2025, indicating its commitment to returning value to shareholders.

Looking ahead, Tanger Inc. remains focused on its growth strategy, which includes potential acquisitions and developments. The company is closely monitoring macroeconomic conditions, including inflation and interest rates, which could impact its operations and tenant performance. Despite these challenges, Tanger Inc. believes it is well-positioned to navigate the retail landscape and continue delivering value to its stakeholders.