Original source text
GREENSBORO, N.C.--(BUSINESS WIRE)--Tanger® (NYSE:SKT), a leading owner and operator of outlet and other open-air retail shopping destinations, today reported financial results and operating metrics for the three and six months ended June 30, 2026.
“Tanger’s strong execution drove another quarter of solid financial and operating performance, demonstrating our differentiated leasing, operating, and marketing platforms and effective financial strategies,” said Stephen Yalof, President and Chief Executive Officer. “We continue to introduce sought-after brands, restaurants, and entertainment concepts that resonate with both existing and new shoppers, and we are engaging a wide demographic of customers through curated and enhanced marketing and traffic-driving initiatives across our portfolio. As expected, occupancy moderated during the quarter as we strategically recaptured a number of spaces where we believe we can create greater value. Our proactive approach to merchandising our centers is supported by robust retailer demand in a continued environment of limited new supply, above-average population growth within our markets, and a consolidating department store industry.”
Mr. Yalof continued, “Our disciplined external growth strategy continued with the accretive acquisition of Levis Commons Town Center, the seventh open-air and fourth lifestyle center added in the past three years. We remain well-positioned to enhance our portfolio, unlock additional value at our centers, and deliver long-term growth for our stakeholders supported by our strong and flexible balance sheet and best-in-class platform.”
Second Quarter Results
Net income available to common shareholders was $0.29 per share, or $33.0 million, compared to $0.26 per share, or $29.9 million, for the prior year period. Funds From Operations (“FFO”) available to common shareholders was $0.64 per share, or $77.1 million, compared to $0.58 per share, or $68.6 million, for the prior year period. Core Funds From Operations (“Core FFO”) available to common shareholders was $0.64 per share, or $77.1 million, compared to $0.58 per share, or $68.6 million, for the prior year period. Year-to-Date Results
Net income available to common shareholders was $0.53 per share, or $61.0 million, compared to $0.43 per share, or $48.9 million, for the prior year period. FFO available to common shareholders was $1.23 per share, or $147.5 million, compared to $1.11 per share, or $131.3 million, for the prior year period. Core FFO available to common shareholders was $1.23 per share, or $147.5 million, compared to $1.11 per share, or $131.3 million, for the prior year period. FFO and Core FFO are widely accepted supplemental non-GAAP financial measures used in the real estate industry to measure and compare the operating performance of real estate companies. Definitions of these non-GAAP financial measures and statements of the reasons why management believes these non-GAAP financial measures provide useful information to investors about the Company’s financial condition and results of operations, and, if applicable, the other purposes for which management uses the measures, as well as reconciliations of these non-GAAP financial measures to GAAP net income, can be found later in this release. Per share amounts for net income, FFO and Core FFO are on a diluted basis.
Operating Metrics
Below are key portfolio results for the total portfolio, including the Company’s pro rata share of unconsolidated joint ventures.
Occupancy was 96.6% on June 30, 2026 and June 30, 2025 and 97.0% on March 31, 2026. On a same center basis, occupancy was 96.6% on June 30, 2026 and June 30, 2025 and 96.9% on March 31, 2026. The sequential occupancy change reflects the timing of strategic backfills of vacancy from a recent tenant bankruptcy. Same center net operating income (“Same Center NOI”), which is presented on a cash basis, increased 3.5% to $106.9 million for the second quarter of 2026 from $103.3 million for the second quarter of 2025 and increased 3.1% to $207.4 million for the first half of 2026 from $201.2 million for the first half of 2025. Average tenant sales per square foot was $487 for the twelve months ended June 30, 2026 compared to $465 for the twelve months ended June 30, 2025 and $482 for the twelve months ended March 31, 2026, reflecting the Company’s execution of its strategy to remerchandise, replace less productive tenants, and evolve its portfolio. On a same center basis, average tenant sales per square foot was $489 for the twelve months ended June 30, 2026 compared to $465 for the twelve months ended June 30, 2025 and $484 for the twelve months ended March 31, 2026. The occupancy cost ratio (“OCR”), representing annualized occupancy costs as a percentage of tenant sales, was 9.7% for each of the twelve month periods ended June 30, 2026, June 30, 2025, and March 31, 2026. Lease termination fees from tenants (which are excluded from Same Center NOI) for the total portfolio totaled $636,000 for the second quarter of 2026 and $2.8 million for the first half of 2026, compared to $272,000 for the second quarter of 2025 and $723,000 for the first half of 2025. Same Center NOI is a supplemental non-GAAP financial measure of operating performance. A complete definition of Same Center NOI and a reconciliation to the nearest comparable GAAP measure can be found later in this release.
Leasing Activity
Leasing activity in the Company’s portfolio continues to be robust from both existing and new tenants. For the total domestic portfolio, including the Company’s pro rata share of domestic unconsolidated joint ventures, total renewed or re-tenanted leases (including leases for both comparable and non-comparable space) executed during the twelve months ended June 30, 2026 included 652 leases, totaling 3.3 million square feet, compared to 625 leases, totaling 2.8 million square feet, during the twelve months ended June 30, 2025.
Blended average rental rate spreads were 10.5% on a cash basis for leases executed for 3.0 million square feet of comparable space during the twelve months ended June 30, 2026. These blended rent spreads are comprised of re-tenanted rent spreads of 28.4% and renewal rent spreads of 7.7%.
As of June 30, 2026, the Company had renewals executed or in process for 70% of the space scheduled to expire during 2026 compared to 65% of expiring 2025 space as of June 30, 2025 (total portfolio, including the Company’s pro rata share of unconsolidated joint ventures).
Transaction Activity
In May 2026, the Company completed the acquisition of Levis Commons Town Center, a 301,000-square-foot open-air lifestyle center located in a vibrant, mixed-use district in the Perrysburg submarket of Toledo, Ohio. The center, which serves as the market-dominant shopping center for the area, was acquired for approximately $60 million using cash on hand and available liquidity. Management expects the center to deliver a first-year return of approximately 8.5%, with potential for additional growth over time. For additional information on this acquisition, please see the related press release available at investors.tanger.inc.
In May 2026, the Company acquired five Saks Off 5th leases for $4.3 million, comprising five stores totaling 140,000 square feet at Tanger Outlets Charleston, Hilton Head 1, Mebane, Phoenix, and Riverhead. As part of the transaction, the Company recorded lease termination expense of $1.3 million, which is included in property operating expenses and is excluded from Same Center NOI. In addition, the Company fully accelerated the non-cash below market rent balance on an acquired Saks Off 5th lease of $2.2 million, which is included in market rent adjustments, a component of GAAP rental revenues.
Balance Sheet and Liquidity
The Company maintains a balance sheet with low leverage, recently extended maturities, significant liquidity, and access to a wide range of capital sources. The Company ended the second quarter of 2026 with $1 billion of available liquidity providing the necessary capital to redeem $350 million of unsecured bonds that mature in September 2026 and fund internal and external growth initiatives.
During the second quarter of 2026, the Company fully repaid the $5 million secured mortgage debt for its Atlantic City, New Jersey property. In addition, the Company entered into forward sale agreements for 0.6 million common shares under its at-the-market stock offering program (the “ATM Offering Program”) at an initial forward sale price of $40.50 per share, representing anticipated total gross proceeds of approximately $24 million, all of which remain unsettled and can be settled over time. As of June 30, 2026, the Company had approximately $376 million of common shares remaining available for sale under the ATM Offering Program.
In July 2026, the Company drew the full $50 million available under the delayed draw feature associated with the unsecured term loan due January 2033 (the “2033 Term Loan”), increasing the total principal outstanding under the 2033 Term Loan from $150 million to $200 million. The Company continues to have an additional $100 million available under the delayed draw feature associated with the unsecured term loan due December 2030.
The following balance sheet and liquidity metrics are presented for the total portfolio, including the Company’s pro rata share of unconsolidated joint ventures. As of June 30, 2026:
Net debt to Adjusted EBITDAre was 4.7x for the twelve month period ended June 30, 2026 compared to 4.8x for the twelve month period ended March 31, 2026 and 4.7x for the twelve month period ended December 31, 2025. Net debt to Adjusted EBITDAre is calculated as Net debt divided by Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“Adjusted EBITDAre”). Interest coverage ratio (calculated as Adjusted EBITDAre divided by interest expense) was 4.5x for the first half of 2026 and 4.7x for the twelve month period ended June 30, 2026. The Company had approximately $1.0 billion of immediate liquidity, including $355 million of cash and cash equivalents, short-term investments, and delayed draw term loan commitments, full availability on the Company’s $620 million unsecured lines of credit, and $24 million of proceeds available from the future settlement of forward sale agreements under the ATM Offering Program. Total outstanding debt aggregated $2.0 billion, all of which was at fixed rates including current swaps. Weighted average interest rate was 3.9%, considering current swaps, and weighted average term to maturity of outstanding debt, including extension options, was approximately 3.3 years. Approximately 89% of the total portfolio’s square footage was unencumbered by mortgages, with secured debt of $335 million (principal), representing approximately 16% of total debt outstanding. Funds Available for Distribution (“FAD”) payout ratio was 64% for the first half of 2026. Adjusted EBITDAre, Net debt and FAD are supplemental non-GAAP financial measures of operating performance. Definitions of Adjusted EBITDAre, Net debt and FAD and reconciliations to the nearest comparable GAAP measures are included later in this release.
Interest Rate Swaps
The Company continued to execute its interest rate hedging strategy during the first half of 2026, entering into new current and forward-starting swaps. Please see the supplemental information package in the Current Report on Form 8-K furnished with the Securities and Exchange Commission (“SEC”) on August 4, 2026 for additional information.
Dividend
In July 2026, the Company’s Board of Directors authorized a quarterly cash dividend of $0.3125 per share, payable on August 14, 2026 to holders of record on July 31, 2026, an increase of 7% compared to the July 2025 quarterly dividend of $0.2925.
Guidance for 2026
Based on the Company’s year-to-date results, its view on current market conditions, and its outlook for the remainder of 2026, management currently believes the Company’s full-year 2026 net income and FFO per share will be as follows:
For the year ending December 31, 2026:
Current
Previous
Low
Range
High
Range
Low
Range
High
Range
Estimated diluted net income per share
$1.06
$1.13
$1.05
$1.13
Depreciation and amortization of real estate assets - consolidated and the Company’s share of unconsolidated joint ventures
1.39
1.39
1.37
1.37
Estimated diluted FFO per share
$2.45
$2.52
$2.42
$2.50
The above estimates reflect the following key assumptions (dollars in millions):
For the year ending December 31, 2026:
Current
Previous
Low
Range
High
Range
Low
Range
High
Range
Same Center NOI growth - total portfolio at pro rata share
2.75
%
4.25
%
2.25
%
4.25
%
General and administrative expense
$80.5
$83.5
$80.5
$83.5
Interest expense, net of interest income - consolidated
$71.0
$73.0
$69.5
$72.5
Annual recurring capital expenditures, renovations, and second generation tenant allowances and other leasing costs
$65.0
$75.0
$65.0
$75.0
Weighted average diluted common shares are expected to range from approximately 115.5 million to 116.5 million for earnings per share and 120.0 million to 121.0 million for FFO and Core FFO per share. The current guidance reflects the May 2026 acquisition of Levis Commons Town Center, but does not include the impact of any additional acquisition or sale of any outparcels, properties or joint venture interests, or any additional financing activity.
Second Quarter 2026 Conference Call
Tanger will host a conference call to discuss its second quarter 2026 results for analysts, investors and other interested parties on Wednesday, August 5, 2026, at 8:30 a.m. Eastern Time. The conference call will be available to the public through a live audio webcast on Tanger’s Investor Relations website, investors.tanger.inc. An online archive of the webcast will also be available following the call through August 19, 2026.
Upcoming Events
The Company is scheduled to participate in the following upcoming events:
2026 NYSE Real Estate Investor Access Day on August 11, 2026 (virtual) Evercore ISI's Real Estate Conference on September 10, 2026 (virtual) with a panel discussion on September 9, 2026 at 8:30 a.m. Eastern Time Barclay’s 24th Annual Global Financial Services Conference held at the New York Hilton Midtown in New York, NY on September 14, 2026 BofA Securities 2026 Global Real Estate Conference held at Bank of America Pavilion, Two Bryant Park in New York, NY on September 15, 2026 About Tanger®
Tanger Inc. (NYSE: SKT) is a leading owner and operator of outlet and other open-air retail shopping destinations, with 45 years of expertise in the retail and outlet shopping industries. Tanger’s portfolio of 38 outlet centers and four open-air lifestyle centers includes nearly 17 million square feet well positioned across tourist destinations and vibrant markets in 22 U.S. states and Canada. A publicly traded REIT since 1993, Tanger continues to innovate the retail experience for its shoppers with over 3,000 stores operated by more than 800 different brand name companies. Tanger is furnishing a Form 8-K with the SEC that includes a supplemental information package for the quarter ended June 30, 2026. For more information on Tanger, call 1-800-4TANGER or visit tanger.inc.
Tanger Inc. (together with its subsidiaries, the “Company”) uses, and intends to continue to use, its Investor Relations website, which can be found at investors.tanger.inc, as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Additional information about the Company can also be found through social media channels. The Company encourages investors and others interested in the Company to review the information on its Investor Relations website and on social media channels. The information contained on, or that may be accessed through, our website or social media platforms is not incorporated by reference into, and is not a part of, this document.
Safe Harbor Statement
Certain statements made in this earnings release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and include this statement for purposes of complying with these safe harbor provisions. Forward-looking statements are generally identifiable by use of the words “anticipate,” “believe,” “can,” “continue,” “could,” “designed,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” and similar expressions that do not report historical matters. Such statements are based on assumptions and expectations that may not be realized and are inherently subject to risks, uncertainties and other factors, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Although we believe the expectations reflected in these forward-looking statements are based on reasonable assumptions, future events and actual results, performance, transactions or achievements, financial and otherwise, may differ materially from the results, performance, transactions or achievements expressed or implied by the forward-looking statements. As a result, you should not rely on or construe any forward-looking statements in this release as predictions of future events or as guarantees of future performance. We caution you not to place undue reliance on forward-looking statements, which speak only as of the date of this release. All of our forward-looking statements are qualified in their entirety by this cautionary statement.
There are a number of risks, uncertainties and other factors that could cause our actual results to differ materially from the forward-looking statements contained in or contemplated by this release. Any forward-looking statements should be considered in light of the risks, uncertainties and other factors referred to in Item 1A. “Risk Factors” in our most recent Annual Report on Form 10-K and our subsequent Quarterly Reports on Form 10-Q and in our other filings with the SEC. Such risks and uncertainties include, but are not limited to: risks associated with general economic and financial conditions, including inflationary pressures and recessionary fears; newly-imposed and potentially additional U.S. tariffs and responsive non-U.S. tariffs; increased capital costs and capital markets volatility; increases in unemployment and reduced consumer confidence and spending; risks related to our ability to acquire or develop new retail centers or expand existing retail centers successfully; risks related to the financial performance and market value of our retail centers and the potential for reductions in asset valuations and related impairment charges; our dependence on rental income from real property; the relative illiquidity of real property investments; failure of our acquisitions or dispositions of retail centers to achieve anticipated results; competition for the acquisition and development of retail centers, and our inability to complete the acquisitions of retail centers we may identify; competition for tenants with competing retail centers and our inability to execute leases with tenants on terms consistent with our expectations; the diversification of our tenant mix and the operation of full price retail may not achieve our expected results; risks associated with environmental regulations; risks associated with possible terrorist activity or other acts or threats of violence and threats to public safety; risks related to international military conflicts, international trade disputes and foreign currency volatility; the fact that certain of our leases include co-tenancy and/or sales-based provisions that may allow a tenant to pay reduced rent and/or terminate a lease prior to its natural expiration; our dependence on the results of operations of our retailers and their bankruptcy, early termination or closing could adversely affect us; the impact of geopolitical conflicts; the impact of a prolonged government shutdown; the immediate and long-term impact of the outbreak of a highly infectious or contagious disease on our tenants and on our business (including the impact of actions taken to contain the outbreak or mitigate its impact); the fact that certain of our properties are subject to ownership interests held by third parties, whose interests may conflict with ours; risks related to climate change; risks related to uninsured losses; the risk that consumer, travel, shopping and spending habits may change; risks associated with our Canadian investments; risks associated with attracting and retaining key personnel; risks associated with debt financing; risks associated with our guarantees of debt for, or other support we may provide to, joint venture properties; the effectiveness of our interest rate hedging arrangements; our potential failure to qualify as a Real Estate Investment Trust (“REIT”); our legal obligation to pay dividends to our shareholders; legislative or regulatory actions that could adversely affect our shareholders; our dependence on distributions from Tanger Properties Limited Partnership’s (together with its subsidiaries, the “Operating Partnership”) to meet our financial obligations, including dividends; risks of costs and disruptions from cyber-attacks or acts of cyber-terrorism on our information systems or on third party systems that we use; unanticipated threats to our business from changes in information and other technologies, including artificial intelligence; and the uncertainties of costs to comply with regulatory changes and other important factors which may cause actual results to differ materially from current expectations include, but are not limited to, those set forth under Item 1A - “Risk Factors” in the Company’s and Operating Partnership’s Annual Report on Form 10-K for the year ended December 31, 2025 and in other reports that we file with the SEC.
Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise.
TANGER INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
Three months ended
Six months ended
June 30,
June 30,
2026
2025
2026
2025
Revenues:
Rental revenue
$148,274
$133,435
$291,812
$262,720
Management, leasing and other services
2,271
2,238
4,475
4,645
Other revenue
5,843
5,021
10,518
8,692
Total revenues
156,388
140,694
306,805
276,057
Expenses:
Property operating
45,473
40,373
92,206
82,193
General and administrative
20,487
18,992
40,575
37,985
Impairment charge
—
—
—
4,249
Depreciation and amortization
41,975
36,608
82,327
73,754
Total expenses
107,935
95,973
215,108
198,181
Other income (expense):
Interest expense
(19,427
)
(16,399
)
(38,603
)
(32,171
)
Other income (expense)
1,724
(26
)
3,631
191
Total other income (expense)
(17,703
)
(16,425
)
(34,972
)
(31,980
)
Income before equity in earnings of unconsolidated joint ventures
30,750
28,296
56,725
45,896
Equity in earnings of unconsolidated joint ventures
3,849
3,034
7,291
5,433
Net income
34,599
31,330
64,016
51,329
Noncontrolling interests in Operating Partnership
(1,358
)
(1,244
)
(2,514
)
(2,042
)
Net income attributable to Tanger Inc.
33,241
30,086
61,502
49,287
Allocation of earnings to participating securities
(257
)
(225
)
(467
)
(427
)
Net income available to common shareholders of Tanger Inc.
$32,984
$29,861
$61,035
$48,860
Basic earnings per common share:
Net income
$0.29
$0.27
$0.53
$0.43
Diluted earnings per common share:
Net income
$0.29
$0.26
$0.53
$0.43
TANGER INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(Unaudited)
June 30,
December 31,
2026
2025
Assets
Rental property:
Land
$348,432
$342,203
Buildings, improvements and fixtures
3,448,125
3,360,308
Construction in progress
19,801
18,174
3,816,358
3,720,685
Accumulated depreciation
(1,581,610
)
(1,513,594
)
Total rental property, net
2,234,748
2,207,091
Cash and cash equivalents
176,878
18,133
Restricted cash
31,008
35,395
Short-term investments
20,000
—
Investments in unconsolidated joint ventures
63,608
64,862
Deferred lease costs and other intangibles, net
113,820
110,669
Operating lease right-of-use assets
82,770
83,497
Prepaids and other assets
136,861
136,335
Total assets
$2,859,693
$2,655,982
Liabilities and Equity
Liabilities
Debt:
Senior, unsecured notes, net
$1,044,558
$1,043,609
Senior, unsecured exchangeable notes, net
243,150
—
Unsecured term loan, net
394,604
323,978
Mortgages payable, net
178,651
185,234
Unsecured lines of credit
—
44,000
Total debt
1,860,963
1,596,821
Accounts payable and accrued expenses
107,684
133,065
Operating lease liabilities
90,777
91,569
Other liabilities
98,856
99,423
Total liabilities
2,158,280
1,920,878
Commitments and contingencies
Equity
Tanger Inc.:
Common shares, $0.01 par value, 300,000,000 shares authorized, 114,878,989 and 115,097,359 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively
1,149
1,151
Paid in capital
1,234,523
1,262,920
Accumulated distributions in excess of net income
(538,728
)
(529,239
)
Accumulated other comprehensive loss
(22,976
)
(28,349
)
Equity attributable to Tanger Inc.
673,968
706,483
Equity attributable to noncontrolling interests:
Noncontrolling interests in Operating Partnership
27,445
28,621
Noncontrolling interests in other consolidated partnerships
—
—
Total equity
701,413
735,104
Total liabilities and equity
$2,859,693
$2,655,982
TANGER INC. AND SUBSIDIARIES
CENTER INFORMATION
(Unaudited)
June 30,
2026
2025
Gross Leasable Area Open at End of Period (in thousands):
Consolidated
14,294
13,298
Unconsolidated
2,113
2,113
Pro rata share of unconsolidated
1,056
1,056
Managed
457
457
Total Owned and/or Managed Properties (1)
16,864
15,868
Total Owned Properties including pro rata share of unconsolidated JVs (1)
15,350
14,354
Centers in Operation at End of Period:
Consolidated
35
33
Unconsolidated
6
6
Managed
1
1
Total Owned and/or Managed Properties
42
40
Ending Occupancy:
Consolidated (2)
96.6
%
96.5
%
Unconsolidated
96.5
%
97.9
%
Total Owned Properties including pro rata share of unconsolidated JVs (2)
96.6
%
96.6
%
Total Owned Properties including pro rata share of unconsolidated JVs - Same Center (3)
96.6
%
96.6
%
Total U.S. States Operated in at End of Period (4)
22
21
TANGER INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP SUPPLEMENTAL MEASURES (1)
(in thousands, except per share)
(Unaudited)
Below is a reconciliation of Net Income to FFO and Core FFO:
Three months ended
Six months ended
June 30,
June 30,
2026
2025
2026
2025
Net income
$34,599
$31,330
$64,016
$51,329
Adjusted for:
Depreciation and amortization of real estate assets - consolidated
40,644
35,386
79,661
71,364
Depreciation and amortization of real estate assets - unconsolidated joint ventures
2,328
2,306
4,673
5,166
Impairment charge - consolidated
—
—
—
4,249
FFO
77,571
69,022
148,350
132,108
Allocation of earnings to participating securities
(478
)
(408
)
(853
)
(764
)
FFO available to common shareholders (2)
$77,093
$68,614
$147,497
$131,344
Core FFO available to common shareholders (2)
$77,093
$68,614
$147,497
$131,344
FFO available to common shareholders per share - diluted (2)
$0.64
$0.58
$1.23
$1.11
Core FFO available to common shareholders per share - diluted (2)
$0.64
$0.58
$1.23
$1.11
Weighted Average Shares:
Basic weighted average common shares
114,455
112,659
114,347
112,528
Effect of dilutive securities:
Equity awards
1,278
1,464
1,260
1,484
Diluted weighted average common shares (for earnings per share computations)
115,733
114,123
115,607
114,012
Exchangeable operating partnership units
4,678
4,663
4,674
4,669
Diluted weighted average common shares (for FFO and Core FFO per share computations) (2)
120,411
118,786
120,281
118,681
Below is a reconciliation of FFO to FAD (1):
Three months ended
Six months ended
June 30,
June 30,
2026
2025
2026
2025
FFO available to common shareholders
$77,093
$68,614
$147,497
$131,344
Adjusted for:
Corporate depreciation
1,331
1,224
2,666
2,392
Amortization of finance costs
1,353
921
2,609
1,861
Amortization of net debt (premium) discount
(251
)
208
(477
)
413
Amortization of equity-based compensation
3,593
3,287
7,203
6,213
Straight-line rent adjustments
(2,226
)
(712
)
(4,578
)
(294
)
Market rent adjustments (2)
(2,994
)
139
(3,348
)
(263
)
Second generation tenant allowances, lease incentives, lease commissions, and other lease costs
(19,621
)
(3,666
)
(23,144
)
(7,105
)
Capital improvements
(9,999
)
(10,456
)
(13,827
)
(13,503
)
Adjustments from unconsolidated joint ventures
(508
)
(1,187
)
(571
)
(1,473
)
FAD available to common shareholders (3)
$47,771
$58,372
$114,030
$119,585
Dividends per share
$0.3125
$0.2925
$0.605
$0.5675
FFO payout ratio
49
%
50
%
49
%
51
%
FAD payout ratio
78
%
60
%
64
%
56
%
Diluted weighted average common shares (3)
120,411
118,786
120,281
118,681
Below is a reconciliation of Net Income to Portfolio NOI and Same Center NOI for the consolidated portfolio and total portfolio at pro rata share:
Three months ended
Six months ended
June 30,
June 30,
2026
2025
2026
2025
Net income
$34,599
$31,330
$64,016
$51,329
Adjusted to exclude:
Equity in earnings of unconsolidated joint ventures
(3,849
)
(3,034
)
(7,291
)
(5,433
)
Interest expense
19,427
16,399
38,603
32,171
Other (income) expense
(1,724
)
26
(3,631
)
(191
)
Impairment charge
—
—
—
4,249
Depreciation and amortization
41,975
36,608
82,327
73,754
Other non-property income
(472
)
(468
)
(353
)
(508
)
Corporate general and administrative expenses
20,514
18,992
40,665
38,008
Non-cash adjustments (1)
(5,232
)
(585
)
(7,950
)
(579
)
Lease termination fees (2)
707
(271
)
(1,414
)
(721
)
Portfolio NOI - Consolidated
105,945
98,997
204,972
192,079
Non-same center NOI - Consolidated
(7,178
)
(3,369
)
(13,447
)
(5,920
)
Same Center NOI - Consolidated (3)
$98,767
$95,628
$191,525
$186,159
Portfolio NOI - Consolidated
$105,945
$98,997
$204,972
$192,079
Pro rata share of unconsolidated joint ventures (4)
8,145
7,629
15,875
15,032
Portfolio NOI - Total portfolio at pro rata share (4)
114,090
106,626
220,847
207,111
Non-same center NOI - Total portfolio at pro rata share (4)
(7,178
)
(3,369
)
(13,447
)
(5,920
)
Same Center NOI - Total portfolio at pro rata share (3) (4)
$106,912
$103,257
$207,400
$201,191
(1) Non-cash items include straight-line rent, above and below market rent amortization, straight-line rent expense on land leases, and lease incentives.
(2) Lease termination fees includes termination rent income and termination rent expense.
(3) Centers excluded from Same Center NOI:
Cleveland, OH
February 2025
Acquired
Consolidated
Kansas City, KS
September 2025
Acquired
Consolidated
Toledo, OH
May 2026
Acquired
Consolidated
Howell, MI
April 2025
Sold
Consolidated
(4) Pro rata share metrics are presented on a constant currency basis. Constant currency is a non-GAAP financial measure, calculated by applying the average foreign exchange rate for the current period to all periods presented.
Below are reconciliations of Net Income to Adjusted EBITDA:
Three months ended
Six months ended
June 30,
June 30,
2026
2025
2026
2025
Net income
$34,599
$31,330
$64,016
$51,329
Adjusted to exclude:
Interest expense, net
17,445
16,309
34,626
31,805
Income tax expense
321
168
440
262
Depreciation and amortization
41,975
36,608
82,327
73,754
Impairment charges - consolidated
—
—
—
4,249
Adjusted EBITDA
$94,340
$84,415
$181,409
$161,399
Twelve months ended
June 30,
December 31,
2026
2025
Net income
$132,188
$119,501
Adjusted to exclude:
Interest expense, net
67,881
65,060
Income tax expense
745
567
Depreciation and amortization
159,549
150,976
Impairment charge - consolidated
—
4,249
Adjusted EBITDA
$360,363
$340,353
Below are reconciliations of Net Income to Adjusted EBITDAre:
Three months ended
Six months ended
June 30,
June 30,
2026
2025
2026
2025
Net income
$34,599
$31,330
$64,016
$51,329
Adjusted to exclude:
Interest expense, net
17,445
16,309
34,626
31,805
Income tax expense
321
168
440
262
Depreciation and amortization
41,975
36,608
82,327
73,754
Impairment charges - consolidated
—
—
—
4,249
Pro rata share of interest expense, net - unconsolidated joint ventures
1,964
2,412
3,905
4,546
Pro rata share of depreciation and amortization - unconsolidated joint ventures
2,328
2,306
4,673
5,166
EBITDAre
$98,632
$89,133
$189,987
$171,111
Adjusted EBITDAre
$98,632
$89,133
$189,987
$171,111
Twelve months ended
June 30,
December 31,
2026
2025
Net income
$132,188
$119,501
Adjusted to exclude:
Interest expense, net
67,881
65,060
Income tax expense
745
567
Depreciation and amortization
159,549
150,976
Impairment charge - consolidated
—
4,249
Pro rata share of interest expense, net - unconsolidated joint ventures
7,836
8,477
Pro rata share of depreciation and amortization - unconsolidated joint ventures
9,297
9,790
EBITDAre
$377,496
$358,620
Adjusted EBITDAre
$377,496
$358,620
Below is a reconciliation of Total debt to Net debt for the consolidated portfolio and total portfolio at pro rata share:
June 30, 2026
Consolidated
Pro Rata
Share of Unconsolidated JVs
Total at
Pro Rata Share
Total debt
$1,860,963
$157,081
$2,018,044
Less:
Cash and cash equivalents
(176,878
)
(7,996
)
(184,874
)
Restricted cash
(31,008
)
—
(31,008
)
Short-term investments (1)
(20,000
)
—
(20,000
)
Total cash and cash equivalents, restricted cash and short-term investments
(227,886
)
(7,996
)
(235,882
)
Net debt
$1,633,077
$149,085
$1,782,162
December 31, 2025
Consolidated
Pro Rata
Share of Unconsolidated JVs
Total at
Pro Rata Share
Total debt
$1,596,821
$157,873
$1,754,694
Less:
Cash and cash equivalents
(18,133
)
(9,685
)
(27,818
)
Restricted cash
(35,395
)
—
(35,395
)
Total cash and cash equivalents and restricted cash
(53,528
)
(9,685
)
(63,213
)
Net debt
$1,543,293
$148,188
$1,691,481
NON-GAAP DEFINITIONS
Funds From Operations
Funds From Operations (“FFO”) is a widely used measure of the operating performance for real estate companies that supplements net income (loss) determined in accordance with generally accepted accounting principles in the United States (“GAAP”). We determine FFO based on the definition set forth by the National Association of Real Estate Investment Trusts (“Nareit”), of which we are a member. In December 2018, Nareit issued “Nareit Funds From Operations White Paper - 2018 Restatement,” which clarifies, where necessary, existing guidance and consolidates alerts and policy bulletins into a single document for ease of use. Nareit defines FFO as net income (loss) available to the Company’s common shareholders computed in accordance with GAAP, excluding (i) depreciation and amortization related to real estate, (ii) gains or losses from sales of certain real estate assets, (iii) gains and losses from change in control, (iv) impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity and (v) after adjustments for unconsolidated partnerships and joint ventures calculated to reflect FFO on the same basis.
FFO is intended to exclude historical cost depreciation of real estate as required by GAAP, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization of real estate assets, gains and losses from property dispositions and extraordinary items, it provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities and interest costs, providing perspective not immediately apparent from net income (loss).
We present FFO because we consider it an important supplemental measure of our operating performance. In addition, a portion of cash bonus compensation to certain members of management is based on our FFO or Core FFO, which is described in the section below. We believe it is useful for investors to have enhanced transparency into how we evaluate our performance and that of our management. In addition, FFO is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is also widely used by us and others in our industry to evaluate and price potential acquisition candidates. We believe that FFO payout ratio, which represents regular distributions to common shareholders and unitholders of the Operating Partnership expressed as a percentage of FFO, is useful to investors because it facilitates the comparison of dividend coverage between REITs. Nareit has encouraged its member companies to report their FFO as a supplemental, industry-wide standard measure of REIT operating performance.
FFO has significant limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:
FFO does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments; FFO does not reflect changes in, or cash requirements for, our working capital needs; Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and FFO does not reflect any cash requirements for such replacements; and Other companies in our industry may calculate FFO differently than we do, limiting its usefulness as a comparative measure. Because of these limitations, FFO should not be considered as a measure of discretionary cash available to us to invest in the growth of our business or our dividend paying capacity. We compensate for these limitations by relying primarily on our GAAP results and using FFO only as a supplemental measure.
Core FFO
We present Core Funds From Operations (“Core FFO”) as a supplemental measure of our performance. We define Core FFO as FFO further adjusted to eliminate the impact of certain items that we do not consider indicative of our ongoing operating performance. These further adjustments are itemized in the table above. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Core FFO you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Core FFO should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
We present Core FFO because we believe it assists investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we believe it is useful for investors to have enhanced transparency into how we evaluate management’s performance and the effectiveness of our business strategies. We use Core FFO when certain material, unplanned transactions occur as a factor in evaluating management’s performance and to evaluate the effectiveness of our business strategies, and may use Core FFO when determining incentive compensation.
Core FFO has limitations as an analytical tool. Some of these limitations are:
Core FFO does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments; Core FFO does not reflect changes in, or cash requirements for, our working capital needs; Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Core FFO does not reflect any cash requirements for such replacements; Core FFO does not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of our ongoing operations; and Other companies in our industry may calculate Core FFO differently than we do, limiting its usefulness as a comparative measure. Because of these limitations, Core FFO should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using Core FFO only as a supplemental measure.
Funds Available for Distribution
Funds Available for Distribution (“FAD”) is a non-GAAP financial measure that we define as FFO (defined as net income (loss) available to the Company’s common shareholders computed in accordance with GAAP, excluding (i) depreciation and amortization related to real estate, (ii) gains or losses from sales of certain real estate assets, (iii) gains and losses from change in control, (iv) impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity and (v) after adjustments for unconsolidated partnerships and joint ventures calculated to reflect FFO on the same basis), excluding corporate depreciation, amortization of finance costs, amortization of net debt discount (premium), amortization of equity-based compensation, straight-line rent amounts, market rent amounts, second generation tenant allowances and lease incentives, recurring capital improvement expenditures, and our share of the items listed above for our unconsolidated joint ventures. Investors, analysts and the Company utilize FAD as an indicator of common dividend potential. The FAD payout ratio, which represents regular distributions to common shareholders and unitholders of the Operating Partnership expressed as a percentage of FAD, facilitates the comparison of dividend coverage between REITs.
We believe that net income (loss) is the most directly comparable GAAP financial measure to FAD. FAD does not represent cash generated from operating activities in accordance with GAAP and should not be considered as an alternative to net income (loss) as an indication of our performance or to cash flows as a measure of liquidity or our ability to make distributions. Other companies in our industry may calculate FAD differently than we do, limiting its usefulness as a comparative measure.
Portfolio Net Operating Income and Same Center Net Operating Income
We present portfolio net operating income (“Portfolio NOI”) and same center net operating income (“Same Center NOI”) as supplemental measures of our operating performance. Portfolio NOI represents our property level net operating income, which is defined as total operating revenues less property operating expenses and excludes termination fees and non-cash adjustments including straight-line rent, net above and below market rent amortization, straight-line rent expense on land leases, lease incentives, impairment charges, loss on early extinguishment of debt and gains or losses on the sale of assets recognized during the periods presented. We define Same Center NOI as Portfolio NOI for the properties that were operational for the entire portion of both comparable reporting periods and which were not acquired, or subject to a material expansion or non-recurring event, such as a natural disaster, during the comparable reporting periods. We present Portfolio NOI and Same Center NOI on both a consolidated and total portfolio, including pro rata share of unconsolidated joint ventures, basis.
We believe Portfolio NOI and Same Center NOI are non-GAAP metrics used by industry analysts, investors and management to measure the operating performance of our properties because they provide performance measures directly related to the revenues and expenses involved in owning and operating real estate assets and provide a perspective not immediately apparent from net income (loss), FFO or Core FFO. Because Same Center NOI excludes properties developed, redeveloped, acquired and sold; as well as non-cash adjustments, gains or losses on the sale of outparcels and termination rents; it highlights operating trends such as occupancy levels, rental rates and operating costs on properties that were operational for both comparable periods. Portfolio NOI and Same Center NOI should not be considered alternatives to net income (loss) as an indication of our performance or to cash flows as a measure of our liquidity or our ability to make distributions. Other REITs may use different methodologies for calculating Portfolio NOI and Same Center NOI, and accordingly, our Portfolio NOI and Same Center NOI may not be comparable to other REITs.
Portfolio NOI and Same Center NOI should not be considered alternatives to net income (loss) or as an indicator of our financial performance since they do not reflect the entire operations of our portfolio, nor do they reflect the impact of general and administrative expenses, acquisition-related expenses, interest expense, depreciation and amortization costs, other non-property income and losses, the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, or trends in development and construction activities which are significant economic costs and activities that could materially impact our results from operations. Because of these limitations, Portfolio NOI and Same Center NOI should not be viewed in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using Portfolio NOI and Same Center NOI only as supplemental measures.
Adjusted EBITDA, EBITDAre and Adjusted EBITDAre
We present Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) as adjusted for items described below (“Adjusted EBITDA”), EBITDA for Real Estate (“EBITDAre”) and Adjusted EBITDAre, all non-GAAP measures, as supplemental measures of our operating performance. Each of these measures is defined as follows:
We define Adjusted EBITDA as net income (loss) available to the Company’s common shareholders computed in accordance with GAAP before net interest expense, income taxes (if applicable), depreciation and amortization, gains and losses on sale of operating properties, joint venture properties, outparcels and other assets, impairment write-downs of depreciated property and of investment in unconsolidated joint ventures caused by a decrease in value of depreciated property in the affiliate, compensation related to voluntary retirement plan and other executive officer severance, certain executive departure-related adjustments, gain on sale of non-real estate asset adjustments, casualty gains and losses, gains and losses on early extinguishment of debt, net and other items that we do not consider indicative of the Company’s ongoing operating performance.
We determine EBITDAre based on the definition set forth by Nareit, which is defined as net income (loss) available to the Company’s common shareholders computed in accordance with GAAP before net interest expense, income taxes (if applicable), depreciation and amortization, gains and losses on sale of operating properties, gains and losses on change of control and impairment write-downs of depreciated property and of investment in unconsolidated joint ventures caused by a decrease in value of depreciated property in the affiliate and after adjustments to reflect our share of the EBITDAre of unconsolidated joint ventures.
Adjusted EBITDAre is defined as EBITDAre excluding gains and losses on early extinguishment of debt, net, casualty gains and losses, compensation related to voluntary retirement plan and other executive officer severance, gain on sale of non-real estate asset adjustments, gains and losses on sale of outparcels, and other items that we do not consider indicative of the Company’s ongoing operating performance.
We present Adjusted EBITDA, EBITDAre and Adjusted EBITDAre as we believe they are useful for investors, creditors and rating agencies as they provide additional performance measures that are independent of a Company’s existing capital structure to facilitate the evaluation and comparison of the Company’s operating performance to other REITs and provide a more consistent metric for comparing the operating performance of the Company’s real estate between periods.
Adjusted EBITDA, EBITDAre and Adjusted EBITDAre have significant limitations as analytical tools, including:
They do not reflect our net interest expense; They do not reflect gains or losses on sales of operating properties or impairment write-downs of depreciated property and of investment in unconsolidated joint ventures caused by a decrease in value of depreciated property in the affiliate; Adjusted EBITDA and Adjusted EBITDAre do not reflect gains and losses on extinguishment of debt and other items that may affect operations; and Other companies in our industry may calculate these measures differently than we do, limiting its usefulness as a comparative measure. Because of these limitations, Adjusted EBITDA, EBITDAre and Adjusted EBITDAre should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA, EBITDAre and Adjusted EBITDAre only as supplemental measures.
Net Debt
We define Net debt as total debt less cash and cash equivalents, including restricted cash, and short-term investments and present this metric for both the consolidated portfolio and for the total portfolio, including the consolidated portfolio and the Company’s pro rata share of unconsolidated joint ventures. Net debt is a component of the Net debt to Adjusted EBITDA ratio, which is defined as Net debt for the respective portfolio divided by Adjusted EBITDA (consolidated portfolio) or Adjusted EBITDAre (total portfolio at pro rata share). We use the Net debt to Adjusted EBITDA and the Net debt to Adjusted EBITDAre ratios to evaluate the Company’s leverage. We believe this measure is an important indicator of the Company’s ability to service its long-term debt obligations.
