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Tanger Inc. Q1 2026 Filing Summary

Business Context and Reporting Period

This Form 10-Q covers the quarterly period ended March 31, 2026, for Tanger Inc. (the "Company") and Tanger Properties Limited Partnership (the "Operating Partnership"). The Company is a fully-integrated, self-administered, and self-managed Real Estate Investment Trust (REIT) focused on developing, acquiring, owning, and operating outlet and open-air retail centers in the United States and Canada. As of March 31, 2026, the portfolio consisted of 34 consolidated centers (31 outlet, 3 lifestyle) totaling approximately 14.0 million square feet with 96.9% occupancy, plus partial interests in six unconsolidated joint ventures.

Key Financial Metrics

Material Changes vs. Prior Period

• Revenue Growth: Total revenues increased 11.1% year-over-year, driven by a $14.3 million increase in rental revenue. This was attributed to higher rents from new and renewal leases, acquisitions in Cleveland (Q1 2025) and Kansas City (Q3 2025), and increased lease termination fees.
• Profitability: Net income rose 47.1% to $29.4 million. The increase was primarily due to higher rental revenues and interest income from cash on hand, partially offset by higher interest expense and operating costs.
• Debt Structure: Total debt increased by approximately $269 million. In January 2026, the Company issued $250 million of 2.375% Exchangeable Senior Notes due 2031 and refinanced unsecured term loans, increasing the outstanding balance from $325 million to $400 million. Additionally, a $115 million mortgage was assumed in Q3 2025 for the Kansas City acquisition.
• Liquidity: Cash and cash equivalents surged from $18.1 million to $207.4 million, largely due to proceeds from the Exchangeable Notes offering and term loan refinancing.
• Capital Expenditures: Cash basis capital expenditures increased to $21.3 million from $10.3 million, driven by new developments and renovations.

Guidance, Outlook, and Risks

• Dividend Increase: In April 2026, the Board declared a quarterly cash dividend of $0.3125 per share, an increase from the $0.2925 declared in January 2026.
• Share Repurchases: The Company repurchased 589,622 shares for approximately $20.0 million in January 2026. Approximately $180.0 million remains available under the current $200.0 million authorization.
• Leasing Activity: Rent spreads for executed leases in the trailing 12 months ended March 31, 2026, were 10.5% for comparable space. Approximately 20% of the total portfolio is scheduled for renewal in 2026.
• Risks and Contingencies:
  • Debt Maturities: Significant debt maturities include $355.3 million in the remainder of 2026 (primarily the $350 million senior notes due September 2026) and $415.0 million in 2027. Management intends to use proceeds from the Exchangeable Notes and term loans to repay the 2026 notes.
  • Macroeconomic Factors: Risks include inflationary pressures, rising interest rates, international trade relations (tariffs), and consumer spending habits.
  • Joint Venture Exposure: The Company has unconsolidated joint ventures with negative carrying values due to distributions exceeding earnings, requiring continued financial support.

Investor Verification Checklist

• Debt Refinancing Plan: Verify the execution of the plan to repay the $350 million senior notes maturing in September 2026 using proceeds from the January 2026 financing.
• Occupancy Trends: Monitor the 96.9% occupancy rate, specifically the performance of the Atlantic City center (81.8% occupancy) and the impact of the 20% of the portfolio coming up for renewal in 2026.
• Capital Allocation: Track the utilization of the $400 million ATM equity offering program and the remaining $180 million share repurchase authorization.
• Interest Rate Hedging: Review the effectiveness of the $461.7 million in interest rate swaps in mitigating exposure to variable rate debt.
• Joint Venture Debt: Assess the $314.9 million in debt held by unconsolidated joint ventures and the Company's exposure via guarantees.