Record leasing and the acquisition of Legends Outlets helped lift Tanger's third-quarter funds from operations to $0.60 per share, up from $0.54 a year earlier, the company said, and prompted management to raise its full-year 2025 outlook. Tanger also reported net income of $0.28 per share in Q3 and said portfolio sales productivity hit an all-time high. Management pointed to robust tenant demand, more restaurants and entertainment concepts, and younger shoppers returning to mid-price apparel and outlet centres as drivers of the stronger results.

Key numbers and results

Tanger, the owner and operator of outlet and open-air shopping destinations, said funds from operations available to common shareholders were $0.60 per share for the quarter, or $71.1 million. That compared with $0.54 per share, or $62.7 million, in the same period last year. Net income available to common shareholders was $0.28 per share, or $31.8 million, versus $0.22 per share, or $24.6 million, a year earlier.

The year-to-date figures also improved. Through the first nine months of 2025 Tanger reported FFO of $1.70 per share, or $202.4 million, up from $1.58 per share, or $182.2 million, in the prior-year period. Net income for the nine months was $0.71 per share, or $80.7 million, compared with $0.65 per share, or $71.4 million. Tanger said the nine-month net income included a non-cash impairment charge of $0.04 per share, or $4.2 million, tied to a centre sold in April 2025.

Management said the quarter's results led it to raise full-year 2025 guidance. Stephen Yalof, President and Chief Executive Officer, attributed the uptick to the company's strategy and stronger operating metrics.

Leasing, acquisitions and sales productivity

Tanger reported record leasing volume in the quarter. The company said tenant demand was broad-based. New leases included restaurants, entertainment venues and non-traditional outlet retailers.

That tenant mix was part of the explanation for Tanger's claim that portfolio sales productivity reached an all-time high.

Tanger also expanded by acquisition. The company closed on Legends Outlets and rebranded it Tanger Kansas City at Legends. Tanger described that acquisition as the sixth open-air centre added to its portfolio in less than two years.

Those moves appear to be both revenue drivers and portfolio-shaping actions. Higher leasing fills space and brings in rent. New formats such as restaurants and entertainment change how centres attract customers and how long they stay.

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Gen Z and the shift back to stores

Industry and company comments point to younger shoppers as a key driver. The International Council of Shopping Centers says 97% of Gen Z shoppers still go to brick-and-mortar stores. Tanger's chief executive echoed that pattern in an interview, saying the younger cohort is returning to mid-price apparel brands and outlets.

In the interview Steven Yalof, identified as Tanger CEO, noted Gen Z customers are buying at brands such as Gap, Banana Republic, Old Navy and J.Crew, and that those brands are showing up in outlet centres. He said footwear and apparel categories still benefit from in-person purchases because customers want to try on items and feel fabrics before they buy.

The company said its digital and on-centre marketing helped accelerate sales momentum. That points to a hybrid shopping pattern. Customers discover items online and then complete the purchase in store. Tanger highlighted that dynamic as part of why leasing demand from apparel and footwear retailers remains healthy.

Why landlords are seeing stronger demand

Tanger described the current environment as one where value-oriented price points are attractive to shoppers. The company said outlets provide consistent value, which is appealing when consumers are price sensitive. That helps explain why mid-price and outlet formats are performing well while some higher-price categories lag.

Record leasing volume also reflects landlord and retailer strategies. Retailers are investing in physical locations that drive discovery and allow customers to touch and try goods. Landlords are responding by offering space to a broader tenant mix, including dining and entertainment, to increase dwell time and cross-shopping.

On the balance sheet front, Tanger said it has liquidity and flexibility to pursue both organic and external growth. Management framed the company's recent acquisitions and leasing gains as part of a play to unlock additional value for shareholders through selective purchases of open-air assets and improved operating performance.

Higher leasing and rising sales productivity feed directly into rental revenue and common-area sales splits. Tanger's FFO measures capture cash earnings from operations. The company reported both quarterly and year-to-date increases in FFO, reflecting stronger cash flow from its portfolio.

The acquisition of Legends Outlets adds a revenue stream for the remainder of the year and into 2026. Tanger said the centre has been rebranded as Tanger Kansas City at Legends. New assets and higher leasing activity can raise depreciation and interest burdens, but Tanger said its balance sheet gives it room to manage those costs while pursuing growth.

Investors often look at FFO and leasing metrics when valuing real estate companies. Tanger's rise in FFO and its statement about raising guidance give a clearer near-term picture of operating performance. Management singled out marketing initiatives and tenant demand as drivers of improved sales and occupancy.

That combination, rising leasing, stronger sales per square foot and an expanding portfolio, creates multiple pathways for cash-flow improvement. Tanger's move to add restaurants and entertainment aims to diversify income and reduce reliance on a narrow set of retail categories.

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"We are well-positioned to unlock additional value for our stakeholders through organic growth and selectively acquiring and operating best-in-class open-air retail assets, backed by a strong balance sheet that provides liquidity and flexibility," said Stephen Yalof, President and Chief Executive Officer.

This article was created with AI assistance.