For Tanger Inc., it was a milestone year, capped by a fourth quarter of major square footage growth and a healthy bottom line.
Same-center net operating income, or NOI, increased 5.4 percent to $91.1 million in the fourth quarter compared to $86.5 million in the year-ago quarter. “We delivered robust organic growth, while also executing on our external growth strategy with the grand opening up of Tanger Outlets Nashville and the acquisitions of Tanger Outlets Asheville and Bridge Street Town Centre in Huntsville, our first non-outlet center,” said Stephen Yalof, president and chief executive officer.
In addition to acquisitions, Yalof said Tanger will sustain momentum through further diversification of the tenant mix to increase the presence of home, beauty, food and health and wellness brands, which it started to do last year with introduction of Ulta Beauty, Shake Shack, RH and Crate & Barrel at a few Tanger centers.
While the gains were seen across several metrics, average tenant sales per square foot slipped modestly to $436 for the 12 months ended Dec. 31, compared to $437 for the 12 months ended Sept. 30, and $444 in 2022. Yalof said the slightly reduced tenant sales productivity reflected a “normalization” of sales trends from post-COVID-19 highs.