Tanger Raises 2026 Outlook as Q3 Core FFO Hits 64 Cents a Share

Tanger Factory Outlet Centers raised its full-year core funds from operations (FFO, the standard REIT earnings measure) guidance to $2.49 to $2.53 per share on Wednesday, up from $2.45 to $2.52 previously. The revised midpoint implies 8 percent growth over last year. The move follows a third quarter that showed steady, if modest, gains across every operating metric the company reports.

The operator of 38 outlet centers and four open-air lifestyle centers posted net income available to common shareholders of 29 cents per share, or $33.4 million, for the quarter ended Sept. 30. That compares with 28 cents, or $31.8 million, a year earlier — roughly a 5 percent increase in dollar terms.

Core FFO came in at 64 cents per share, or $77.1 million, against 60 cents, or $71.1 million, in the prior-year period. Reported FFO matched core FFO exactly, an unusually clean result for a REIT that often books one-off items in either column.

What did the operating metrics show?

The leasing picture was flat to slightly positive, with one caveat worth noting:

• Occupancy: 97.3 percent as of Sept. 30, versus 97.4 percent a year earlier — a marginal decline the company did not address directly.
• Same-center NOI (net operating income): up 4.2 percent to $108.4 million, from $104 million.
• Tenant sales: $487 per square foot for the 12 months ended Sept. 30, versus $475 the prior year.

The 10-basis-point occupancy dip sits against strong rent and sales productivity, suggesting the company is trading space quality for rate — or simply that the number is noise. The release does not say which.

What is driving the raised guidance?

President and CEO Stephen Yalof credited portfolio mix and demand from brands. In a statement he said: "Our portfolio continues to attract sought-after brands, restaurants, entertainment, and service uses, while our marketing strategies are drawing a wide range of shoppers, collectively boosting our performance."

He also pointed to structural tailwinds: "We see a long runway for growth, driven by strong retailer demand and health, limited new supply, and robust population growth in our markets." Limited new supply is a claim outlet landlords have made for years; Tanger offers no pipeline data here to test it.

On the balance sheet, Yalof said the company used cash on hand and delayed draws on its term loans to repay maturing notes, keeping leverage low and liquidity strong. The release does not disclose the specific debt figures behind that statement.

What does the CEO expect for holiday selling?

Yalof tied part of his outlook to the U.S. midterm elections, held Tuesday. "Consumers probably have a lot more confidence now than they did a few days ago," he told WWD. "There was so much uncertainty in the market pending the outcome of the elections, and now with that behind us, there's far more certainty going into this important holiday selling season."

He argued the elections were "a referendum on the American public's frustration with rising gas prices, rising interest rates, rising food prices — the affordability crisis — and world events," noting oil prices fell after results came in.

His confidence rests partly on an exchange-traded fund he follows that includes Gap Inc. and American Eagle Outfitters, two major Tanger tenants. The fund rose 5.5 percent to $93 after the election — a market signal, not a sales figure. He also flagged one concrete calendar tailwind: 29 days between Thanksgiving and Christmas this year, one more than in 2024.

On categories, Yalof cited early holiday buzz since late October and singled out accessories. "As a category, accessories is making a move. We see great traction with brands like Tory Burch, Coach, Michael Kors, Vera Bradley," he said, noting those brands had struggled over the past couple of quarters and now show momentum. That observation is anecdotal; Tanger provided no category-level sales breakdown to confirm it.

Why does the consistency claim matter?

Yalof framed the quarter as part of a longer pattern. "It's been about five years of consistency for us," he said. "We came out of COVID really strong and retail has been resilient. It feels like every year there's another economic headwind the consumer faces, but they have stood resiliently against it and continue to consume in our channel."

Five years of post-pandemic resilience is a defensible read of the numbers, though a two-cent year-over-year gain in per-share net income tests the word "strong." The raised guidance is the harder evidence.

For brands and retailers weighing outlet channel exposure, the takeaway is a landlord with near-full centers, rising tenant sales productivity, and 4 percent-plus same-center NOI growth entering a holiday season it expects to be strong — expectations now priced into guidance that the fourth quarter must deliver.