Tanger Reports First Quarter Results and Increases 2026 Guidance

Published: 2026-04-30 16:06:07 ET SKT

Tenant Demand Propels Record Leasing Volume and Merchandising Opportunities Positioned for Long-Term Value Creation Through Organic and External Growth Enhances Balance Sheet Capacity, Liquidity, and Flexibility

Published on 04/30/2026 at 04:06 pm EDT

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 months ended March 31, 2026.

“Tanger’s successful execution of its growth strategy delivered another quarter of strong financial and operating results, contributing to an increase in our full-year guidance,” said Stephen Yalof, President and Chief Executive Officer. “Through our proven leasing, operating, and marketing platforms and underpinned by disciplined financial strategies, we continue to curate our merchandising, intensify our real estate, and execute our external growth initiatives. We achieved record leasing volume fueled by retailer demand and limited new supply. We are attracting new and younger shoppers by adding sought-after retailers, restaurants, and entertainment destinations that elevate our centers and drive incremental traffic and value.”

Mr. Yalof continued, “We are pleased to have recently announced a 7% increase in our dividend, supported by our strong earnings growth and low dividend payout ratio. Tanger is well-positioned to deliver long-term value creation for our stakeholders through both organic and external growth, anchored by a strong, low-leveraged balance sheet that provides significant liquidity and flexibility.”

First Quarter Results

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. Operating metrics for the first quarter of 2025 exclude the center in Howell, Michigan that was sold in April 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 March 31, 2026 included 651 leases, totaling 3.4 million square feet, compared to 545 leases, totaling 2.5 million square feet, during the twelve months ended March 31, 2025.

Blended average rental rate spreads were 10.5% on a cash basis for leases executed for 3.1 million square feet of comparable space during the twelve months ended March 31, 2026. These blended rent spreads are comprised of re-tenanted rent spreads of 26.2% and renewal rent spreads of 7.9%.

As of April 30, 2026, the Company had renewals executed or in process for 67% of the space scheduled to expire during 2026 compared to 57% of expiring 2025 space as of April 30, 2025 (total portfolio, including the Company’s pro rata share of unconsolidated joint ventures).

Balance Sheet and Liquidity

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 March 31, 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.

January 2026 Financing Transactions

As previously announced and discussed further below, in January 2026, the Company completed a series of financing transactions that increased the Company’s debt capacity, enhanced liquidity, extended debt duration, lowered pricing, and expanded its bank group. A portion of the net proceeds from these transactions are expected to be used to repay in full the outstanding $350 million aggregate principal amount of 3.125% senior notes due September 1, 2026 and for general corporate purposes, including the repayment of additional debt.

Unsecured Term Loans

The Company closed on $550 million of unsecured term loans, comprised of (i) an amendment of the Company's existing $325 million term loan increasing capacity to $350 million and extending the maturity to December 2030 (the “2030 Term Loan”) and (ii) a new $200 million term loan due January 2033 (the “2033 Term Loan”). The Company drew an incremental $75 million of proceeds at closing, for a total outstanding amount of $400 million, and currently has a combined $150 million available under a delayed draw feature. The applicable pricing margin is SOFR plus 95 basis points for the 2030 Term Loan and SOFR plus 125 basis points for the 2033 Term Loan based on the Company’s current credit rating.

The Company also amended its $600 million revolving credit facility and its $20 million liquidity line to remove the 10-basis point SOFR credit adjustment spread and made certain conforming changes to remove the 10-basis point SOFR credit adjustment spread from the 2030 Term Loan and the 2033 Term Loan.

Exchangeable Senior Notes

Additionally, the Company issued $250 million aggregate principal amount of 2.375% Exchangeable Senior Notes due 2031 and entered into capped call transactions that increased the effective conversion price from approximately $41.55 per share to approximately $47.49 per share, subject to adjustments. The net proceeds of approximately $243 million were used to pay approximately $9 million of capped call transaction costs and repurchase approximately $20 million of the Company’s common shares at $33.92 per share, or approximately 590,000 shares.

The remaining proceeds from the term loans and the exchangeable notes were used to repay approximately $44 million of the outstanding debt under the unsecured lines of credit, with the remainder to be used to repay additional debt and general corporate purposes. Please see the Company’s Current Reports on Form 8-K filed with the Securities and Exchange Commission (“SEC”) on January 6, 2026 and January 12, 2026 for additional information on these transactions.

Interest Rate Swaps

The Company continued to execute its interest rate hedging strategy during 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 SEC on April 30, 2026 for additional information.

Dividend

In April 2026, the Company’s Board of Directors approved a 6.8% increase in the dividend for common shares from $1.17 to $1.25 per share on an annualized basis. Simultaneously, the Company’s Board of Directors authorized a quarterly cash dividend of $0.3125 per share, payable on May 15, 2026 to holders of record on April 30, 2026.

Board Update

At Tanger’s 2026 Annual Meeting, Steven B. Tanger will retire from the Board of Directors and assume the role of Chair Emeritus, a non-voting advisory role. Following the 2026 Annual Meeting, Luis Ubiñas is expected to assume the role of Chair of the Board, and Bridget Ryan-Berman will remain on the Board, but conclude service as Lead Independent Director.

Guidance for 2026

Based on the Company’s first quarter 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

Low

Range

High

Range

Low

Range

High

Range

Estimated diluted net income per share

1.05

1.13

1.04

1.12

Depreciation and amortization of real estate assets - consolidated and the Company’s share of unconsolidated joint ventures

1.37

Estimated diluted FFO per share

2.42

2.50

2.41

2.49

The above estimates reflect the following key assumptions (dollars in millions):

For the year ending December 31, 2026:

Current

Low Range

High

Range

Low Range

High

Range

Same Center NOI growth - total portfolio at pro rata share

2.25

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

69.5

72.5

69.5

72.5

Annual recurring capital expenditures, renovations and second generation tenant allowances

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. Guidance does not include the impact of any additional acquisition or sale of any outparcels, properties or joint venture interests, or any additional financing activity.

First Quarter 2026 Conference Call

Tanger will host a conference call to discuss its first quarter 2026 results for analysts, investors and other interested parties on Friday, May 1, 2026, at 8:00 a.m. Eastern Time. To access the conference call, listeners should dial 1-877-605-1702. Alternatively, a live audio webcast of this call will be available to the public on Tanger’s Investor Relations website, investors.tanger.com. A telephone replay of the call will be available from May 1, 2026 at approximately 11:00 a.m. through May 15, 2026 at 11:59 p.m. by dialing 1-877-660-6853, replay access code #13759139. An online archive of the webcast will also be available through May 15, 2026.

Upcoming Events

The Company is scheduled to participate in the following upcoming events:

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 three open-air lifestyle centers includes more than 16 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 March 31, 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.com, 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

March 31,

2026

2025

Revenues:

Rental revenue

143,538

129,285

Management, leasing and other services

2,204

2,407

Other revenue

4,675

3,671

Total revenues

150,417

135,363

Expenses:

Property operating

46,733

41,820

General and administrative

20,088

18,993

Impairment charge

—

4,249

Depreciation and amortization

40,352

37,146

Total expenses

107,173

102,208

Other income (expense):

Interest expense

(19,176

)

(15,772

)

Other income (expense)

1,907

217

Total other income (expense)

(17,269

)

(15,555

)

Income before equity in earnings of unconsolidated joint ventures

25,975

17,600

Equity in earnings of unconsolidated joint ventures

3,442

2,399

Net income

29,417

19,999

Noncontrolling interests in Operating Partnership

(1,156

)

(798

)

Noncontrolling interests in other consolidated partnerships

—

Net income attributable to Tanger Inc.

28,261

19,201

Allocation of earnings to participating securities

(210

)

(202

)

Net income available to common shareholders of Tanger Inc.

28,051

18,999

Basic earnings per common share:

Net income

0.25

0.17

Diluted earnings per common share:

Net income

0.24

0.17

TANGER INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(Unaudited)

March 31,

December 31,

2026

2025

Assets

Rental property:

Land

342,203

Buildings, improvements and fixtures

3,368,779

3,360,308

Construction in progress

21,286

18,174

3,732,268

3,720,685

Accumulated depreciation

(1,547,230

)

(1,513,594

)

Total rental property, net

2,185,038

2,207,091

Cash and cash equivalents

207,403

18,133

Restricted cash

35,811

35,395

Short-term investments

20,000

—

Investments in unconsolidated joint ventures

64,788

64,862

Deferred lease costs and other intangibles, net

105,489

110,669

Operating lease right-of-use assets

83,136

83,497

Prepaids and other assets

132,609

136,335

Total assets

2,834,274

2,655,982

Liabilities and Equity

Liabilities

Debt:

Senior, unsecured notes, net

1,044,088

1,043,609

Senior, unsecured exchangeable notes, net

242,826

—

Unsecured term loan, net

394,342

323,978

Mortgages payable, net

184,418

185,234

Unsecured lines of credit

—

44,000

Total debt

1,865,674

1,596,821

Accounts payable and accrued expenses

78,442

133,065

Operating lease liabilities

91,179

91,569

Other liabilities

101,197

99,423

Total liabilities

2,136,492

1,920,878

Commitments and contingencies

Equity

Tanger Inc.:

Common shares, $0.01 par value, 300,000,000 shares authorized, 114,875,851 and 115,097,359 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively

1,149

1,151

Paid in capital

1,230,945

1,262,920

Accumulated distributions in excess of net income

(536,026

)

(529,239

)

Accumulated other comprehensive loss

(25,593

)

(28,349

)

Equity attributable to Tanger Inc.

670,475

706,483

Equity attributable to noncontrolling interests:

Noncontrolling interests in Operating Partnership

27,307

28,621

Noncontrolling interests in other consolidated partnerships

—

Total equity

697,782

735,104

Total liabilities and equity

2,834,274

2,655,982

TANGER INC. AND SUBSIDIARIES

CENTER INFORMATION (1)

(Unaudited)

March 31,

2026

2025

Gross Leasable Area Open at End of Period (in thousands):

Consolidated

14,012

13,298

Unconsolidated

2,113

Pro rata share of unconsolidated

1,056

Managed

457

758

Total Owned and/or Managed Properties (2)

16,582

16,169

Total Owned Properties including pro rata share of unconsolidated JVs (2)

15,068

14,355

Centers in Operation at End of Period:

Consolidated

Unconsolidated

Managed

Total Owned and/or Managed Properties

Ending Occupancy:

Consolidated (3)

96.9

95.7

Unconsolidated

97.8

97.2

Total Owned Properties including pro rata share of unconsolidated JVs (3)

97.0

95.8

Total Owned Properties including pro rata share of unconsolidated JVs - Same Center (4)

96.9

95.8

Total U.S. States Operated in at End of Period (5)

(1)

Operating metrics for March 2025 exclude the center in Howell, Michigan that was sold in April 2025.

(2)

Amounts may not recalculate due to the effect of rounding.

(3)

March 2026 occupancy includes the results of Tanger Kansas City at Legends, which was acquired during the third quarter of 2025.

(4)

Excludes the results of Tanger Kansas City at Legends for March 2026.

(5)

The Company also has an ownership interest in two centers located in Ontario, Canada.

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

March 31,

2026

2025

Net income

29,417

19,999

Adjusted for:

Depreciation and amortization of real estate assets - consolidated

39,017

35,978

Depreciation and amortization of real estate assets - unconsolidated joint ventures

2,345

2,860

Impairment charge - consolidated

—

4,249

FFO

70,779

63,086

Allocation of earnings to participating securities

(375

)

(356

)

FFO available to common shareholders (2)

70,404

62,730

Core FFO available to common shareholders (2)

70,404

62,730

FFO available to common shareholders per share - diluted (2)

0.59

0.53

Core FFO available to common shareholders per share - diluted (2)

0.59

0.53

Weighted Average Shares:

Basic weighted average common shares

114,238

112,396

Effect of dilutive securities:

Equity awards

1,216

1,557

Diluted weighted average common shares (for earnings per share computations)

115,454

113,953

Exchangeable operating partnership units

4,670

4,676

Diluted weighted average common shares (for FFO and Core FFO per share computations) (2)

120,124

118,629

(1)

Refer to Non-GAAP Definitions beginning on page xv for definitions of the non-GAAP supplemental measures used in this release.

(2)

Assumes the Class A and Class C common limited partnership units of the Operating Partnership held by the noncontrolling interests are exchanged for common shares of the Company. Each Class A and Class C common limited partnership unit is exchangeable for one of the Company’s common shares, subject to certain limitations to preserve the Company’s REIT status.

Below is a reconciliation of FFO to FAD (1):

Three months ended

March 31,

2026

2025

FFO available to common shareholders

70,404

62,730

Adjusted for:

Corporate depreciation

1,335

1,168

Amortization of finance costs

1,256

940

Amortization of net debt (premium) discount

(226

)

205

Amortization of equity-based compensation

3,610

2,926

Straight-line rent adjustments

(2,352

)

418

Market rent adjustments

(354

)

(402

)

Second generation tenant allowances and lease incentives

(3,523

)

(3,439

)

Capital improvements

(3,828

)

(3,047

)

Adjustments from unconsolidated joint ventures

(63

)

(286

)

FAD available to common shareholders (2)

66,259

61,213

Dividends per share

0.2925

0.275

FFO payout ratio

FAD payout ratio

Diluted weighted average common shares (2)

120,124

118,629

(1)

Refer to page ix for a reconciliation of net income to FFO available to common shareholders.

(2)

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

March 31,

2026

2025

Net income

29,417

19,999

Adjusted to exclude:

Equity in earnings of unconsolidated joint ventures

(3,442

)

(2,399

)

Interest expense

19,176

15,772

Other income

(1,907

)

(217

)

Impairment charge

—

4,249

Depreciation and amortization

40,352

37,146

Other non-property (income) expense

119

(40

)

Corporate general and administrative expenses

20,150

19,016

Non-cash adjustments (1)

(2,718

)

Lease termination fees

(2,121

)

(450

)

Portfolio NOI - Consolidated

99,026

93,082

Non-same center NOI - Consolidated

(6,270

)

(2,551

)

Same Center NOI - Consolidated (2)

92,756

90,531

Portfolio NOI - Consolidated

99,026

93,082

Pro rata share of unconsolidated joint ventures (3)

7,729

7,402

Portfolio NOI - Total portfolio at pro rata share (3)

106,755

100,484

Non-same center NOI - Total portfolio at pro rata share (3)

(6,270

)

(2,551

)

Same Center NOI - Total portfolio at pro rata share (2) (3)

100,485

97,933

(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)

Centers excluded from Same Center NOI:

Cleveland, OH

February 2025

Acquired

Consolidated

Kansas City, KS

September 2025

Acquired

Consolidated

Howell, MI

April 2025

Sold

Consolidated

(3)

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

March 31,

2026

2025

Net income

29,417

19,999

Adjusted to exclude:

Interest expense, net

17,181

15,496

Income tax expense

119

Depreciation and amortization

40,352

37,146

Impairment charges - consolidated

—

4,249

Adjusted EBITDA

87,069

76,984

Twelve months ended

March 31,

December 31,

2026

2025

Net income

128,919

119,501

Adjusted to exclude:

Interest expense, net

66,745

65,060

Income tax expense

592

567

Depreciation and amortization

154,182

150,976

Impairment charge - consolidated

—

4,249

Adjusted EBITDA

350,438

340,353

Below are reconciliations of Net Income to Adjusted EBITDAre:

Three months ended

March 31,

2026

2025

Net income

29,417

19,999

Adjusted to exclude:

Interest expense, net

17,181

15,496

Income tax expense

119

Depreciation and amortization

40,352

37,146

Impairment charges - consolidated

—

4,249

Pro rata share of interest expense, net - unconsolidated joint ventures

1,941

2,134

Pro rata share of depreciation and amortization - unconsolidated joint ventures

2,345

2,860

EBITDAre

91,355

81,978

Adjusted EBITDAre

91,355

81,978

Twelve months ended

March 31,

December 31,

2026

2025

Net income

128,919

119,501

Adjusted to exclude:

Interest expense, net

66,745

65,060

Income tax expense

592

567

Depreciation and amortization

154,182

150,976

Impairment charge - consolidated

—

4,249

Pro rata share of interest expense, net - unconsolidated joint ventures

8,284

8,477

Pro rata share of depreciation and amortization - unconsolidated joint ventures

9,275

9,790

EBITDAre

367,997

358,620

Adjusted EBITDAre

367,997

358,620

Below is a reconciliation of Total debt to Net debt for the consolidated portfolio and total portfolio at pro rata share:

March 31, 2026

Consolidated

Pro Rata

Share of

Unconsolidated JVs

Total at

Pro Rata Share

Total debt

1,865,674

157,480

2,023,154

Less:

Cash and cash equivalents

(207,403

)

(7,291

)

(214,694

)

Restricted cash

(35,811

)

—

(35,811

)

Short-term investments (1)

(20,000

)

—

(20,000

)

Total cash and cash equivalents, restricted cash and short-term investments

(263,214

)

(7,291

)

(270,505

)

Net debt

1,602,460

150,189

1,752,649

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

(1)

Represents short-term bank deposits with initial maturities greater than three months and less than or equal to one year.

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:

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:

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:

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260430128418/en/