Tanger's Q3 Revenue Jumps, Net Income Up Amid Asset Growth

TL;DR

**Tanger's Q3 shows solid growth, but rising debt and an impairment charge warrant a closer look at future leverage and asset quality.**

AI Summary

Tanger Inc. reported a significant increase in rental revenue for the nine months ended September 30, 2025, reaching $399,945,000, up from $365,349,000 in the prior year. Net income attributable to Tanger Inc. also saw a healthy rise to $81,314,000 for the nine-month period, compared to $72,109,000 in 2024. The company's total assets grew to $2,635,937,000 as of September 30, 2025, from $2,381,183,000 at December 31, 2024, driven by an increase in total rental property, net, to $2,196,014,000. Key business changes include an increase in debt, with total debt rising to $1,613,012,000 from $1,423,759,000, primarily due to a significant increase in mortgages payable to $186,050,000 from $58,867,000 and the addition of $60,000,000 in unsecured lines of credit. An impairment charge of $4,249,000 was recognized in the nine months ended September 30, 2025. Strategic outlook appears focused on continued property development and acquisitions, as evidenced by the increase in construction in progress to $18,310,000 from $7,453,000.

Why It Matters

This filing reveals Tanger's continued growth in rental income and net profit, signaling a robust performance in the outlet and open-air retail sector. For investors, the increase in total assets and equity, alongside higher earnings per share, suggests a healthy underlying business and potential for sustained dividends. Employees and customers benefit from a stable and expanding company, potentially leading to more job opportunities and enhanced shopping experiences. In a competitive retail landscape, Tanger's ability to increase revenue and manage expenses, despite an impairment charge, demonstrates resilience and effective operational strategies, potentially strengthening its market position against other REITs.

Risk Assessment

Risk Level: medium — The company's total debt increased significantly to $1,613,012,000 as of September 30, 2025, from $1,423,759,000 at December 31, 2024, representing a 13.3% increase. This rise in leverage, particularly the jump in mortgages payable to $186,050,000, coupled with a $4,249,000 impairment charge, indicates potential financial strain or asset revaluation risks that could impact future profitability and financial flexibility.

Analyst Insight

Investors should monitor Tanger's debt-to-equity ratio and interest coverage going forward, especially given the increase in mortgages payable and unsecured lines of credit. While revenue and net income growth are positive, a deeper dive into the nature of the $4,249,000 impairment charge is crucial to assess asset quality and future capital allocation decisions.

Financial Highlights

debt To Equity

2.20

revenue

$421,265,000

operating Margin

31.5%

total Assets

$2,635,937,000

total Debt

$1,613,012,000

net Income

$81,314,000

eps

$0.72

gross Margin

N/A

cash Position

$13,029,000

revenue Growth

+9.3%

Revenue Breakdown

Key Numbers

• $399.9M — Rental Revenue (Increased from $365.3M in 2024 for the nine months ended September 30, 2025)
• $81.3M — Net Income Attributable to Tanger Inc. (Increased from $72.1M in 2024 for the nine months ended September 30, 2025)
• $2.64B — Total Assets (Increased from $2.38B at December 31, 2024)
• $1.61B — Total Debt (Increased from $1.42B at December 31, 2024)
• $186.1M — Mortgages Payable (Increased significantly from $58.9M at December 31, 2024)
• $60.0M — Unsecured Lines of Credit (New debt added as of September 30, 2025)
• $4.2M — Impairment Charge (Recognized for the nine months ended September 30, 2025)
• $0.72 — Basic Earnings Per Common Share (Increased from $0.66 in 2024 for the nine months ended September 30, 2025)
• 115,110,004 — Common Shares Outstanding (As of October 31, 2025)
• $18.3M — Construction in Progress (Increased from $7.5M at December 31, 2024, indicating development activity)

Key Players & Entities

• Tanger Inc. (company) — Registrant and owner/operator of outlet and open-air retail centers
• Tanger Properties Limited Partnership (company) — Operating Partnership holding shopping centers and assets
• $399,945,000 (dollar_amount) — Rental revenue for the nine months ended September 30, 2025
• $81,314,000 (dollar_amount) — Net income attributable to Tanger Inc. for the nine months ended September 30, 2025
• $2,635,937,000 (dollar_amount) — Total assets as of September 30, 2025
• $1,613,012,000 (dollar_amount) — Total debt as of September 30, 2025
• $186,050,000 (dollar_amount) — Mortgages payable as of September 30, 2025
• $60,000,000 (dollar_amount) — Unsecured lines of credit as of September 30, 2025
• $4,249,000 (dollar_amount) — Impairment charge for the nine months ended September 30, 2025
• New York Stock Exchange (regulator) — Exchange where Tanger Inc. Common Shares are registered

FAQ

Risk Factors

• Increased Debt Levels [high — financial]: Total debt increased to $1,613,012,000 from $1,423,759,000, primarily due to a significant rise in mortgages payable to $186,050,000 and new unsecured lines of credit. This higher leverage increases financial risk and interest expense.
• Impairment Charges [medium — operational]: A $4,249,000 impairment charge was recognized in the nine months ended September 30, 2025. This indicates potential issues with the carrying value of certain assets, possibly due to market conditions or underperformance.
• Tenant Concentration and Retail Market Shifts [medium — market]: The company's reliance on retail tenants makes it susceptible to shifts in consumer spending habits and the overall health of the retail sector. While not explicitly detailed in this filing, this remains a persistent risk for REITs in this segment.
• Interest Rate Sensitivity [medium — financial]: With total debt at $1,613,012,000, the company is exposed to fluctuations in interest rates. Rising rates would increase interest expense, impacting profitability, especially given the new unsecured lines of credit.
• Construction and Development Risks [medium — operational]: The increase in construction in progress to $18,310,000 from $7,453,000 signals ongoing development. Such projects carry risks of cost overruns, delays, and market acceptance upon completion.

Industry Context

Tanger Inc. operates in the retail real estate investment trust (REIT) sector, specifically focusing on outlet centers and open-air shopping centers. The industry is characterized by evolving consumer shopping habits, the rise of e-commerce, and a need for experiential retail. Companies like Tanger are adapting by focusing on open-air formats, tenant mix optimization, and creating community hubs.

Regulatory Implications

As a publicly traded REIT, Tanger Inc. is subject to SEC regulations and accounting standards (GAAP). Changes in tax laws affecting REITs or real estate could have a significant impact. The company must also comply with local zoning and environmental regulations for its properties.

What Investors Should Do

1. Monitor debt levels and interest coverage ratios.
2. Analyze the impact of the impairment charge.
3. Evaluate the success of ongoing development projects.
4. Assess tenant diversification and lease expirations.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reporting period showing increased revenue and net income, but also higher debt and an impairment charge.
• 2024-12-31: December 31, 2024 — Prior year-end balance sheet figures for comparison, showing lower total debt and construction in progress.
• 2025-10-31: October 31, 2025 — Date for common shares outstanding (115,110,004), relevant for per-share calculations.

Glossary

Rental property, net

The value of land, buildings, and improvements owned by the company, net of accumulated depreciation. This represents the core asset base for a REIT. (Shows the company's investment in its income-generating properties, which increased to $2,196,014,000.)

Construction in progress

Costs incurred for properties currently under development or construction that are not yet ready for their intended use. (Indicates active development and expansion, which increased significantly to $18,310,000, suggesting future growth potential but also associated risks.)

Impairment charge

A reduction in the carrying value of an asset when its recoverable amount is less than its book value. (The $4,249,000 charge suggests that certain assets are no longer worth their book value, potentially impacting future earnings and asset valuations.)

Noncontrolling interests

The portion of equity in a subsidiary that is not attributable to the parent company. (Represents ownership by other parties in consolidated entities, which is relatively small for Tanger Inc. ($28,505,000).)

Unsecured lines of credit

Borrowing facilities that are not backed by specific collateral. (The addition of $60,000,000 in unsecured lines of credit increases financial flexibility but also adds to the company's overall debt burden.)

Year-Over-Year Comparison

Compared to the prior year-end (December 31, 2024), Tanger Inc. has seen a notable increase in total assets, rising to $2.64B, largely driven by growth in its net rental property portfolio. This expansion has been financed by a significant increase in total debt, which grew to $1.61B, with mortgages payable nearly tripling to $186.1M and new unsecured lines of credit added. While revenue and net income for the nine-month period show positive growth, the company also incurred a $4.2M impairment charge, indicating potential asset value concerns not present in the prior period.

Key Financial Figures

• $0.01 — ge on which registered Common Shares, $0.01 par value SKT New York Stock Exchange

Filing Documents

• skt-20250930.htm (10-Q) — 2734KB
• skt10q9302025ex311.htm (EX-31.1) — 9KB
• skt10q9302025ex312.htm (EX-31.2) — 9KB
• skt10q9302025ex313.htm (EX-31.3) — 13KB
• skt10q9302025ex314.htm (EX-31.4) — 13KB
• skt10q9302025ex321.htm (EX-32.1) — 4KB
• skt10q9302025ex322.htm (EX-32.2) — 4KB
• skt10q9302025ex323.htm (EX-32.3) — 5KB
• skt10q9302025ex324.htm (EX-32.4) — 5KB
• 0001628280-25-050139.txt ( ) — 13584KB
• skt-20250930.xsd (EX-101.SCH) — 78KB
• skt-20250930_cal.xml (EX-101.CAL) — 91KB
• skt-20250930_def.xml (EX-101.DEF) — 633KB
• skt-20250930_lab.xml (EX-101.LAB) — 847KB
• skt-20250930_pre.xml (EX-101.PRE) — 845KB
• skt-20250930_htm.xml (XML) — 2049KB

Financial Information

Part I. Financial Information Item 1.

FINANCIAL STATEMENTS OF TANGER INC. (Unaudited)

FINANCIAL STATEMENTS OF TANGER INC. (Unaudited) Consolidated Balance Sheets - as of September 30, 2025 and December 31, 2024 5 Consolidated Statements of Operations - for the three and nine months ended September 30, 2025 and 2024 6 Consolidated Statements of Comprehensive Income - for the three and nine months ended September 30, 2025 and 2024 7 Consolidated Statements of Shareholders' Equity - for the three and nine months ended September 30, 2025 and 2024 8 Consolidated Statements of Cash Flows - for the nine months ended September 30, 2025 and 2024 10

FINANCIAL STATEMENTS OF TANGER PROPERTIES LIMITED PARTNERSHIP (Unaudited)

FINANCIAL STATEMENTS OF TANGER PROPERTIES LIMITED PARTNERSHIP (Unaudited) Consolidated Balance Sheets - as of September 30, 2025 and December 31, 2024 11 Consolidated Statements of Operations - for the three and nine months ended September 30, 2025 and 2024 12 Consolidated Statements of Comprehensive Income - for the three and nine months ended September 30, 2025 and 2024 13 Consolidated Statements of Equity - for the three and nine months ended September 30, 2025 and 2024 14 Consolidated Statements of Cash Flows - for the nine months ended September 30, 2025 and 2024 16

Notes to Consolidated Financial Statements of Tanger Inc. and Tanger Properties Limited Partnership 17

Notes to Consolidated Financial Statements of Tanger Inc. and Tanger Properties Limited Partnership 17

Management's Discussion and Analysis of Financial Condition and Results of Operations 43

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 43

Quantitative and Qualitative Disclosures about Market Risk 69

Item 3. Quantitative and Qualitative Disclosures about Market Risk 69

Controls and Procedures (Tanger Inc. and Tanger Properties Limited Partnership) 70

Item 4. Controls and Procedures (Tanger Inc. and Tanger Properties Limited Partnership) 70

Other Information

Part II. Other Information

Legal Proceedings 71

Item 1. Legal Proceedings 71

Risk Factors 71

Item 1A. Risk Factors 71

Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities 73

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities 73

Defaults upon Senior Securities 73

Item 3. Defaults upon Senior Securities 73

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 73

Other Information 74

Item 5. Other Information 74

Exhibits 75

Item 6. Exhibits 75 Signatures 76 4

- FINANCIAL INFORMATION

PART I. - FINANCIAL INFORMATION

- Financial Statements of Tanger Inc

Item 1 - Financial Statements of Tanger Inc. TANGER INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share data, unaudited) September 30, 2025 December 31, 2024 Assets Rental property: Land $ 342,203 $ 311,355 Buildings, improvements and fixtures 3,318,981 3,089,239 Construction in progress 18,310 7,453 3,679,494 3,408,047 Accumulated depreciation ( 1,483,480 ) ( 1,428,017 ) Total rental property, net 2,196,014 1,980,030 Cash and cash equivalents 13,029 46,992 Restricted cash 37,199 — Investments in unconsolidated joint ventures 65,695 65,665 Deferred lease costs and other intangibles, net 115,999 85,028 Operating lease right-of-use assets 81,741 76,099 Prepaids and other assets 126,260 127,369 Total assets $ 2,635,937 $ 2,381,183 Liabilities and Equity Liabilities Debt: Senior, unsecured notes, net $ 1,043,131 $ 1,041,710 Unsecured term loan, net 323,831 323,182 Mortgages payable, net 186,050 58,867 Unsecured lines of credit 60,000 — Total debt 1,613,012 1,423,759 Accounts payable and accrued expenses 98,527 107,775 Operating lease liabilities 90,071 84,499 Other liabilities 102,176 85,476 Total liabilities 1,903,786 1,701,509 Commitments and contingencies Equity Tanger Inc.: Common shares, $ 0.01 par value, 300,000,000 shares authorized, 115,115,168 and 112,738,633 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 1,151 1,127 Paid in capital 1,260,435 1,190,746 Accumulated distributions in excess of net income ( 528,996 ) ( 511,816 ) Accumulated other comprehensive loss ( 28,944 ) ( 27,687 ) Equity attributable to Tanger Inc. 703,646 652,370 Equity attributable to noncontrolling interests: Noncontrolling interests in Operating Partnership 28,505 27,304 Noncontrolling interests in other consolidated partnerships — — Total equity 732,151 679,674 Total liabilities and equity $ 2,635,937 $ 2,381,183 The accompanying notes are an integral part of these consoli

- Financial Statements of Tanger Properties Limited Partnership

Item 1 - Financial Statements of Tanger Properties Limited Partnership TANGER PROPERTIES LIMITED PARTNERSHIP AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except unit data, unaudited) September 30, 2025 December 31, 2024 Assets Rental property: Land $ 342,203 $ 311,355 Buildings, improvements and fixtures 3,318,981 3,089,239 Construction in progress 18,310 7,453 3,679,494 3,408,047 Accumulated depreciation ( 1,483,480 ) ( 1,428,017 ) Total rental property, net 2,196,014 1,980,030 Cash and cash equivalents 12,761 46,700 Restricted cash 37,199 — Investments in unconsolidated joint ventures 65,695 65,665 Deferred lease costs and other intangibles, net 115,999 85,028 Operating lease right-of-use assets 81,741 76,099 Prepaids and other assets 125,805 126,852 Total assets $ 2,635,214 $ 2,380,374 Liabilities and Equity Liabilities Debt: Senior, unsecured notes, net $ 1,043,131 $ 1,041,710 Unsecured term loan, net 323,831 323,182 Mortgages payable, net 186,050 58,867 Unsecured lines of credit 60,000 — Total debt 1,613,012 1,423,759 Accounts payable and accrued expenses 97,804 106,966 Operating lease liabilities 90,071 84,499 Other liabilities 102,176 85,476 Total liabilities 1,903,063 1,700,700 Commitments and contingencies Equity Partners' Equity: General partner, 1,250,000 and 1,250,000 units outstanding at September 30, 2025 and December 31, 2024, respectively 8,909 9,094 Limited partners, 4,662,904 and 4,707,958 Class A common units, and 113,865,168 and 111,488,633 Class B common units outstanding at September 30, 2025 and December 31, 2024, respectively 753,680 699,711 Accumulated other comprehensive loss ( 30,438 ) ( 29,131 ) Total partners' equity 732,151 679,674 Noncontrolling interests in consolidated partnerships — — Total equity 732,151 679,674 Total liabilities and equity $ 2,635,214 $ 2,380,374 The accompanying notes are an integral part of these consolidated financial statements. 11 TANGER PROPE

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