Tanger Factory Outlet Centers (SKT) Misses Q1 EPS by 48c, Revenues Miss

Tanger Factory Outlet Centers (NYSE: SKT) reported Q1 EPS of ($0.30), $0.48 worse than the analyst estimate of $0.18. Revenue for the quarter came in at $111.63 million versus the consensus estimate of $112.08 million.

First Quarter Results

• Net loss available to common shareholders was $0.30 per share, or $27.4 million, compared to net income available to common shareholders of $0.66 per share, or $61.7 million, for the prior year period. The current year period was impacted by a non-cash impairment charge totaling $45.7 million, or $0.47 per share, related to the Company's outlet center in Manshantucket, CT (Foxwoods). The prior year period is inclusive of a gain on the sale of four outlet centers totaling $43.4 million, or $0.44 per share.
• Funds From Operations ("FFO") and Core Funds From Operations ("Core FFO") available to common shareholders were both $0.50 per share, or $48.7 million, compared to $0.57 per share, or $55.9 million, for the prior year period.

"During these unprecedented times, the health and well-being of our team members, shoppers, tenants and communities are of utmost importance," said Steven B. Tanger, Chief Executive Officer. "We continue to follow health agency guidelines and to offer our facilities to assist the communities we serve. We are also proud to have kept our dedicated work force employed with their health care benefits intact."

"Liquidity and capital preservation are crucial in times of uncertainty. Due to our disciplined approach, we entered 2020 with one of the strongest balance sheets in our peer group. Our previously-undrawn $600 million lines of credit provided an important source of liquidity that we believe will sustain our business until there is more clarity regarding the impact of the COVID-19 pandemic."

"Over many economic cycles during the past 39 years, we have shown that in good times people love a bargain and in tough times like these, they need a bargain. Outlet stores remain the ideal distribution channel for retailers to monetize inventory. We are currently working with several retailers with excess inventory due to pandemic-related closures that are interested in opening permanent stores and temporary pop-up stores as soon as possible. The vast majority of Tanger Outlet Centers are open-air shopping destinations, where customers are likely to be more comfortable."

"With an exemplary leadership track record in the outlet industry and extensive retailer relationships, the addition of Steve Yalof as our new President further strengthens our senior management team. His unique perspective of having been both a landlord and a tenant is invaluable as we navigate these extraordinary times," Mr. Tanger added.

For earnings history and earnings-related data on Tanger Factory Outlet Centers (SKT) click here.

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