Tanger Factory Outlet Centers, which operates a shopping center in Williamsburg, posted higher funds from operations in the fourth quarter of 2015 that beat analysts’ expectations.
The key measure of profitability for real estate investment trusts rose to $58.1 million, or 58 cents per share, in the quarter that ended on Dec. 31, up from $52.9 million, or 53 cents per share, in the same period of 2014. Analysts surveyed by Zacks Investment Research were expecting an average of 57 cents per share.
Funds from operations is a closely watched measure in the REIT industry. It takes net income and adds back items such as depreciation and amortization.
Greensboro, N.C.-based Tanger reported fourth-quarter net income of $106.9 million, or $1.13 per share, compared with $17.1 million, or 18 cents per share, in the final quarter of 2014.
For the year, Tanger posted funds from operations of $221.4 million, or $2.22 per share, up from $194.9 million, or $1.97 per share, in 2014.
Net income was $208.8 million, or $2.20 per share, for all of 2015, up sharply from $72.1 million, or 77 cents per share, in 2014.
Steven Tanger, president and CEO, said in a news release that the company opened four new outlet centers in 2015 that expanded its total footprint to more than 40 locations and plans to open two new centers this year that are under construction.
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Tanger Outlet Centers recorded a $120.4 million gain on the sale of five non-core outlet centers and the company’s ownership interest in a joint venture that owned an additional non-core outlet center.
The company ended 2015 with consolidated portfolio occupancy of at least 95 percent.
Tanger operates and owns, or has an ownership interest in, a portfolio of 42 outlet shopping centers in 21 states and Canada.