Tanger, lifted by its diversifying tenant mix, property portfolio and shopper demographics, reported another quarter of solid results, posting gains across most metrics.

Net income was down — 17 cents per share, or $19 million, compared to 20 cents per share, or $22.2 million a year ago — due to a non-cash impairment charge of 4 cents per share, or $4.2 million, related to the sale of a center in Howell, Mich., last month. However, funds from operations reached 53 cents per share, or $62.7 million, compared to 51 cents per share, or $58.6 million, for the year-ago period. Core funds from operations were 53 cents per share, or $62.7 million, compared to 52 cents per share, or $60.1 million, for the prior year period. FFO and Core FFO are widely accepted measures in the real estate industry to gauge company performances.

Occupancy was 95.8 percent on March 31, compared to 98 percent on Dec. 31, 2024, and 96.5 percent on March 31, 2024, reflecting the timing of tenants leaving and others filling the space through Tanger’s re-merchandising strategy. Of the 15 Forever 21 stores that closed at Tanger centers, six have been taken over by Barnes & Noble, Sephora and a couple of other brands. Forever 21 has been liquidating and closed the 350 stores it had in the U.S.

On a same-center basis, occupancy was 95.9 percent on March 31, 98.2 percent on Dec. 31, 2024, and 96.8 percent on March 31, 2024. The same center portfolio excludes The Promenade at Chenal and Pinecrest, which were acquired in the fourth quarter of 2024 and first quarter of 2025, respectively, and the center in Howell, Mich.

On a same-center basis, average tenant sales per square foot were $451 for the 12 months ended March 31 compared to $440 a year earlier.

“Our business is really good,” Stephen Yalof, president and chief executive officer, told WWD. “I hate to be overly optimistic but retailers are talking about opening more stores,” which will add to the growing diversity of Tanger’s tenant mix.

In the aftermath of Shake Shack beginning to open at Tanger properties, “Restaurants are paying more attention to outlets than ever before,” Yalof said. With full-price centers now part of the portfolio, Tanger is no longer just an outlet center operator and now gets “a seat at the table” with full-price retailers that previously didn’t lease with it.

In addition, “We are starting to see shoppers that typically shopped full-price now coming into our channel to find brands they like,” said the CEO.

He also sees younger shoppers visiting Tanger centers in greater numbers, noting that many are shopping Gap, which he said is “really cool again,” as well as American Eagle, Sephora, and a Japanese skin care, health and beauty brand called Miniso, among other retailers with a youth appeal.

Last February, Tanger acquired Pinecrest, a 640,000-square-foot, open-air, mixed-use center in Orange Village, Ohio, for $167 million. Earlier, Tanger acquired Bridge Street Town Centre, an 825,000‑square-foot, open-air lifestyle center in Huntsville, Ala., for $193.5 million, and The Promenade at Chenal in Little Rock, Ark., a 270,000-square-foot upscale, open-air lifestyle shopping center, for $73 million. The purchases reflect Tanger’s efforts over the past couple of years to extend its real estate portfolio beyond outlet centers and into full-price open-air retail centers the company considers dominant in a market.

“Given the current macroeconomic environment, we believe our strong, low-leveraged balance sheet and ample liquidity provide stability and the ability to remain opportunistic with our growth,” Yalof said in a statement, raising the possibility of additional acquisitions in the not-too-distant future. The publicly held company’s portfolio of 38 outlet centers, one adjacent managed center and three open-air lifestyle centers includes more than 16 million square feet positioned across tourist destinations and markets in 21 U.S. states and Canada.

Yalof also stated his company is seeing “continued momentum in our re-merchandising strategy to elevate and diversify our tenant mix as we replace less productive tenants and add more desirable retailers, restaurants, and entertainment across our portfolio.”

Regarding the impact of potential tariffs, Yalof said, “There has not been much of an inventory issue in the outlet channel.”

Still, in a switch in the marketing calendar, Tanger’s back-to-school sales will begin June 1, to capture shoppers who are concerned about there being less inventory closer to when kids return to school. Last year, Tanger’s back-to-school sales started at the end of the summer.

“There is that cloud of uncertainty,” Yalof acknowledged. “Some folks are anticipating they might not get the products they want in the back half of the year.”

Regarding tariff-related price increases, “I have not seen a material change in pricing in our portfolio, in some instances retailers have said their buys and landed goods are pretty set for the next quarter or two.”