Tanger Inc (NYSE:SKT), a leading owner and operator of outlet shopping centers, reported fourth-quarter and full-year 2025 financial results that significantly exceeded analyst expectations, driven by robust leasing activity and strong growth in property-level income.
Earnings and Revenue Performance vs. Estimates
The company delivered a decisive beat on both top and bottom-line metrics for the quarter ended December 31, 2025.
- Funds From Operations (FFO) per Share: The key profitability metric for REITs came in at $0.63 per share. This result substantially outperformed the analyst consensus estimate of $0.33 per share.
- Rental Revenue: Reported rental revenue for the quarter was $151.0 million, surpassing the analyst estimate of approximately $144.9 million.
The full-year 2025 performance also showed solid growth, with FFO per share reaching $2.33, up from $2.12 in the prior year. Net income available to common shareholders for the year was $0.99 per share, compared to $0.88 per share in 2024.
Market Reaction and Price Action
Following the earnings release, the market's reaction appears measured. The stock's after-market performance showed no significant immediate movement. However, when viewed over recent weeks, Tanger Inc (NYSE:SKT) shares have demonstrated positive momentum, gaining approximately 1.9% over the past week, 5.7% over two weeks, and 8.9% over the past month. This suggests that investor confidence had been building ahead of the earnings report, potentially in anticipation of strong results, and the confirmed beat may be seen as validating the recent upward trend.
Key Operational Highlights from the Report
Beyond the earnings beat, the press release highlighted several indicators of fundamental strength across Tanger's portfolio:
- Strong Occupancy and Leasing: Portfolio occupancy ended the year at 98.1%, with same-center occupancy at 98.2%. The company executed a record 630 leases totaling 3.1 million square feet in 2025, with blended rental rate spreads on comparable space of 9.5%.
- Growth in Property Income: Same-center net operating income (NOI) increased 5.6% year-over-year for the fourth quarter and 4.3% for the full year, reflecting healthy organic growth.
- Strengthened Balance Sheet: In early 2026, the company completed a series of financing transactions, including new term loans and the issuance of exchangeable notes, enhancing liquidity, extending debt maturities, and lowering pricing. Management stated these moves provide over $1 billion in current liquidity.
- 2026 Guidance Introduced: Looking ahead, Tanger provided initial FFO per share guidance for 2026 in a range of $2.41 to $2.49. This outlook is based on assumptions including same-center NOI growth of 2.25% to 4.25%. This forecast provides a baseline for future performance, which investors can compare to evolving analyst estimates.
Outlook and Forward Estimates
The company's provided 2026 FFO per share guidance range has a midpoint of $2.45. For context, the broader analyst sales estimate for the full year 2026 currently stands at approximately $581.1 million. For the upcoming first quarter of 2026, analysts are estimating revenue of about $141.1 million and earnings per share of $0.33. Tanger's own guidance will serve as a critical benchmark against which these external estimates will be measured in the coming quarters.
Conclusion
Tanger Inc (NYSE:SKT) capped off 2025 with a strong quarter, beating earnings estimates by a wide margin and demonstrating operational strength through high occupancy, positive rent spreads, and solid NOI growth. The company's proactive financial management has bolstered its balance sheet, positioning it for strategic initiatives in 2026. The positive stock performance in the weeks leading up to the report indicates investor optimism, which the results appear to support. The focus now shifts to the company's ability to execute on its 2026 guidance in a dynamic retail environment.
For a detailed look at historical earnings, future estimates, and analyst projections, visit the Tanger Inc earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
