Tanger Inc. (SKT) Income Statement

The revenue growth is broad-based, with both base rent and percentage rent contributing. The acceleration from 9.1% in Q2 2025 to 11.2% in Q2 2026 suggests strong leasing momentum and possibly higher occupancy. NOI growth slightly lagging revenue growth indicates stable property-level margins, which is a positive sign for operational efficiency.

The stability in NOI margin despite revenue growth suggests that operating expenses are being well-controlled and recovered from tenants. The slight dip from 71.3% to 70.9% may reflect higher property taxes or insurance costs, but the overall margin remains healthy. This indicates that Tanger's expense recovery structure is effective, though investors should monitor if any cost pressures emerge.

The FFO growth is strong, driven by revenue expansion and stable margins. The gap between FFO and net income is typical for REITs due to depreciation, but the consistent FFO growth suggests high-quality earnings. The dividend yield of 0.8% is low, but FFO coverage appears ample, indicating a safe dividend. However, the volatility in AFFO (from $35.5M to $46.2M in prior quarter) warrants attention to recurring capital expenditures.

The large depreciation expense is a non-cash charge that understates economic earnings. The difference between FFO and net income highlights the importance of using FFO for valuation. The recurring maintenance CAPEX, reflected in the AFFO adjustments, appears manageable, but the wide swings in AFFO (from $30.7M to $67.8M) suggest variability in capital spending that investors should scrutinize.

While same-store data is not explicitly provided, the consistent NOI growth across quarters suggests organic improvements. The occupancy and rent spreads are likely favorable, given the revenue growth. The company's focus on open-air centers and lifestyle additions may be driving traffic and tenant sales, supporting rent increases. However, the lack of explicit same-store metrics limits deeper analysis.