A real estate investment trust that owns and operates outlet and open-air lifestyle shopping centers across the U.S. and Canada, housing over 700 brands in more than 2,600 stores. The company traces its roots to 1981, when founder Stanley K. Tanger built the nation's first outlet mall in Burlington, North Carolina — and put his own name on the door.
Same-center NOI growth slowed to 3.3% as occupancy dipped to 96.6%, while a lease settlement lifted revenue.
Occupancy slipped below 97% for the first time in two years. rose 11.1% to $148.3 million and climbed 10.5% to $33.2 million, aided by a $2.2 million benefit from a Saks Off 5th lease settlement that also pushed occupancy lower. The core portfolio is growing more slowly, and the company is now carrying $1.86 billion in debt ahead of a $350 million maturity in September.
Key takeaways
rose 10.5% to $33.2 million, as a $14.8 million increase in rental and a $2.2 million acceleration of from an acquired Saks Off 5th lease outweighed a $3.0 million rise in .
grew 11.1% to $148.3 million, with the Saks lease contributing $2.2 million of the gain alongside higher rents on renewals and contributions from recently acquired centers.
increased 3.3% to $98.8 million, decelerating from the 5.3% growth reported in the same quarter a year ago.
Section summaries
Management's Discussion and Analysis
Net income rose to $34.6M in Q2 2026, driven by higher rental rates, acquisitions, and a $2.2M lease amortization benefit.
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Rental revenues grew $14.8M, boosted by higher rents on renewals, a strengthened tenant mix, and a $2.2M acceleration of below-market lease from an acquired Saks Off 5th lease.
Consolidated portfolio occupancy fell to 96.6% from 98% at year-end 2025, partly reflecting the closure of a Saks Off 5th store in connection with its bankruptcy.
rose $3.0 million to $19.4 million, driven by the assumption of a $115.0 million mortgage on the Kansas City center and the January 2026 issuance of $250.0 million in 2.375% due 2031.
stood at $1.86 billion, up 22.0% , as the company refinanced ahead of a $350.0 million senior note maturity due in September 2026.
What changed
The $350 million senior note maturity due September 2026, flagged repeatedly in prior filings, was addressed in January 2026 when the company issued $250 million in and amended term loans to increase total capacity to $550 million, leaving $207.4 million in cash on the balance sheet.
Same Center growth decelerated to 3.3% from the 5.3% reported in Q2 2025, and from the 2.5% reported in Q1 2026, suggesting the rate is settling below the mid-single-digit pace seen a year ago.
The Atlantic City center, previously flagged with a fair value significantly below its $102.1 million carrying amount, was not mentioned as impaired this quarter, though no update on its operating performance was provided.
Occupancy fell to 96.6% from 98% at year-end 2025, the first time it has dropped below 97% since year-end 2022, driven partly by the Saks Off 5th bankruptcy-related closure.
What to watch
Whether the $350 million senior notes due September 2026 are fully retired with the $250 million in and $550 million in term loan capacity, and at what blended interest rate relative to the 3.90% on the swaps that expired in 2024.
Whether Same Center growth stabilizes around the 3.3% level or re-accelerates as the remaining 2026 lease expirations are renewed at positive spreads.
Whether portfolio occupancy recovers from 96.6% as the Saks Off 5th space is backfilled, and whether the $27.77 average base rent per square foot holds or improves.
Whether the Atlantic City center, with a carrying value of $102.1 million and a fair value previously flagged as significantly lower, triggers an if operating cash flows or holding-period assumptions deteriorate.
Property operating expenses increased $5.1M, partly due to $1.3M in lease termination costs related to the Saks Off 5th bankruptcy and higher digital advertising and health insurance costs.
rose $3.0M to $19.4M, reflecting the assumption of a $115.0M mortgage on the Kansas City center and January 2026 financing transactions including $250.0M in .
The company issued $250.0M of 2.375% due 2031 and amended term loans to increase total capacity to $550.0M, enhancing liquidity ahead of a $350.0M senior note maturity in September 2026.
for the consolidated portfolio increased 3.3% to $98.8M, while total consolidated portfolio occupancy stood at 96.6% as of June 30, 2026.
Quantitative and Qualitative Disclosures About Market Risk
Interest-rate risk is managed via swaps that fix all consolidated variable debt; a 100-bp rise would lower debt fair value by ~$36.5M.
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As of June 30, 2026, interest rate swaps with $461.7M fixed rates on all consolidated variable-rate debt, leaving no direct floating-rate exposure.
An unconsolidated Galveston joint venture also holds a $60.0M .
A 100-basis-point increase in rates would reduce the fair value of consolidated debt by approximately $36.5M (vs. $30.2M at year-end 2025).
Credit-rating downgrades could raise on unsecured lines and term loans, though no balances were drawn on lines at quarter-end.
Foreign currency exposure is concentrated in the Canadian Dollar from Canadian investments; cash held in CAD is insignificant and translation exposures are generally not hedged.
The Company and the Operating Partnership are, from time to time, engaged in a variety of legal proceedings arising in the normal course of business. Although the results of these legal proceedings cannot be predicted with certainty, management believes that the final outcome of…
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The Company and the Operating Partnership are, from time to time, engaged in a variety of legal proceedings arising in the normal course of business. Although the results of these legal proceedings cannot be predicted with certainty, management believes that the final outcome of such proceedings will not have a material adverse effect on our results of operations or financial condition.
There have been no material changes from the risk factors disclosed in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2025. 74
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There have been no material changes from the risk factors disclosed in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2025.
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