Tanger (NYSE:SKT) executives struck an optimistic tone on the company’s fourth-quarter and full-year 2025 earnings call, citing record leasing activity, high occupancy, and continued investments in remerchandising and new uses across its outlet and open-air lifestyle center portfolio.
Fourth-quarter and full-year performance
President and CEO Stephen Yalof said Tanger “delivered another strong quarter,” supported by what he described as a “differentiated platform” benefiting from limited new retail development, department store consolidation, and favorable demographic trends in many of the company’s markets.
Bilerman attributed the growth to Same-Center NOI growth of 4.3% for the year, contributions from acquisitions, improved base rents and reimbursements, growth in other revenues, and “disciplined” cost management. He said the company finished 2025 “just above the high end” of its most recent guidance due to modestly higher Same-Center NOI growth and better performance from acquisitions in the non-same-center pool.
Leasing, occupancy, and retailer demand
Tanger emphasized continued strength in leasing and tenant demand. Yalof said the company achieved more than 3 million square feet of leasing volume in 2025, its “highest annual production on record.” Year-end occupancy was 98.1%, up 70 basis points sequentially.
Yalof also highlighted:
- Positive rent spreads for renewals and new deals, alongside extended lease terms
- Tenant sales productivity of $473 per square foot, up 7% year over year
- Occupancy cost ratio (OCR) of 9.7%, which management said provides “additional runway for growth”
Management said it had addressed more than 40% of space scheduled to expire in 2026 (as of the end of January), which it characterized as creating room to focus on retenanting and merchandising initiatives.
In Q&A, Yalof described a strategic shift toward more retenanting versus renewing. He said retenanting is “far more profitable” than renewals, noting that the company historically renewed about 95% of tenants but expects to renew about 80% this year, creating more opportunities to replace tenants and diversify the mix with new brands, entertainment, and restaurants.
Asked about retailer conditions, executives said retailers’ “open to buy” levels have not decelerated and that demand for space remains strong amid limited new supply. Yalof said the end of 2025 was “very promotionally,” and he discussed how last year’s tariff announcements led some retailers to shift distribution and manufacturing, contributing to excess inventory in the outlet channel during the fourth quarter.
Marketing, loyalty, and technology initiatives
Yalof said Tanger saw positive traffic during the holiday season, supported by marketing campaigns including its “Every Day is Black Friday” promotion that began in early November. He also said holiday social media efforts increased engagement with younger shoppers and helped drive adoption of Tanger’s TangerClub loyalty platform.
On loyalty, Yalof said the program is opt-in and uses attribution to track when digital coupons bring customers back to centers and into stores. He described “gamification” and “stackable discounts” (in partnership with retailers) as particularly relevant for younger shoppers. When asked for specific membership or demographic growth metrics, management said it tracks the data but was not prepared to share details on the call.
Yalof also said the company is leveraging AI to improve operations and shopper communication, noting that a multilingual AI chatbot handled more than half of customer service interactions last year.
Balance sheet actions and 2026 outlook
Bilerman outlined January financing transactions that he said improved liquidity, extended debt duration, and reduced refinancing risk. He said the company raised and refinanced $800 million of debt, and that pro forma for the transactions Tanger has more than $1 billion of immediate liquidity, including $270 million of cash, $150 million of delayed draws on new term loans, and full availability on a $620 million revolving credit facility.
The transactions included:
- $550 million of unsecured term loans due in 2030 and 2033, with $150 million of delayed-draw capacity
- $250 million of five-year exchangeable senior notes with a 2.375% coupon and a conversion price of $41.55, alongside capped call transactions that raised the effective conversion price to $47.49
Bilerman said that, pro forma, 100% of debt is fixed-rate (including swaps), the weighted average interest rate is about 4%, and net debt to adjusted EBITDA at pro rata share was 4.7x at year-end. He also said the dividend represented 61% of Funds Available for Distribution.
For 2026, management issued initial guidance for Core FFO per share of $2.41 to $2.49, which Bilerman said is “up over 5% at the midpoint.” The company guided to Same-Center NOI growth of 2.25% to 4.25% and recurring capex of $65 million to $75 million, with capex expected to remain in the “mid-teens” as a percentage of NOI.
On potential tenant disruptions, management said its tenant watch list remains “manageable,” and it was not surprised by recently announced bankruptcies, which Bilerman said can create remerchandising opportunities over time. Executives also discussed the company’s use of temporary leasing—described as “10-ish%”—as a way to backfill space quickly while pursuing longer-term tenant plans.
About Tanger (NYSE:SKT)
Tanger Factory Outlet Centers, Inc (NYSE: SKT) is a real estate investment trust specializing in the ownership, development and management of outlet shopping centers. The company’s portfolio comprises more than 40 outlet properties anchored by leading fashion and lifestyle brands. Tanger’s centers are designed to offer off-price retail experiences in open-air, community-oriented settings, providing value-focused shoppers with access to premium brands at reduced prices.
Founded in 1981 by Stanley K.
