Experts have expressed concerns about Tanger Factory Outlets ability to recapture rent related to the negative impact of short-term lease renewals and growing pressure on occupancy, Forbes reports.
The bargain shopping center chain, which has a location in Gonzales, has struggled with tenant bankruptcies and at-risk tenants. But CEO Steve Tanger says less than 2% of Tanger’s leases are considered short term and insist “there’s nothing abnormal here.”
“We’re convinced that we’re seeing positive momentum … everybody in our company is a leasing rep,” he said during a recent conference call in response to questions from analysts. Tanger Outlets recently reported its fourth quarter 2017 earnings rose 32% year over year to $31.2 million, up from $23.8 million for the same period in 2016. Adjusted funds from operations, a more accurate measure of free cash flow, increased 8% to 66 cents per share from 61 cents.
The chain’s year end occupancy was at 97.3%—a modest drop from 97.7% during the comparable period in the prior year.
