How does Tanger’s performance this quarter stack up against its direct peers in the retail REIT sector?

Tanger’s Q2 2025 performance – a quick‐look at the numbers

What this means relative to the broader retail REIT landscape

1. Sector backdrop – The retail REIT sector in 2025 continues to grapple with a mixed environment:

   • E‑commerce pressure remains a head‑wind, especially for traditional enclosed malls.
     
   • Outlet and open‑air concepts (the niche Tanger occupies) have been relatively resilient because they attract “destination” shoppers looking for brand‑discount experiences that can’t be replicated online.
     
   • Many peers (e.g., Simon Property Group, Regency, and even some mixed‑use REITs) have reported flat‑to‑declining same‑store sales and cautious leasing activity in the first half of 2025, prompting them to hold or trim guidance rather than raise it.

2. Guidance‑raising as a differentiator – Raising full‑year guidance is still uncommon among the larger, more traditional retail REITs. For example:

   • Simon Property Group (SPG) – In its Q2 2025 release, Simon kept its 2025 earnings per share (EPS) guidance unchanged and warned that same‑store sales were only modestly up, reflecting a more conservative stance.
     
   • Regency Centers (RS) and Retail Properties of America (RPA) – Both reported stable or slightly down NOI versus the prior quarter and did not lift guidance, citing “headwinds in discretionary spending.”
     
   • Kimco Realty (KIM) – While Kimco’s open‑air and community‑center portfolio performed well, the company only maintained its 2025 outlook, noting “steady but not accelerating” traffic.

By contrast, Tanger’s decision to raise its full‑year outlook signals that its operating metrics (traffic, same‑store sales, lease renewals) are outpacing the sector’s average pace.

1. Traffic and guest‑count trends – Outlet and open‑air centers have been benefiting from a “travel‑to‑shop” consumer mindset, especially as domestic tourism rebounds after pandemic‑related restrictions. Peer REITs that own similar open‑air assets (e.g., Vornado’s open‑air portfolio, SCP’s “lifestyle” centers) have reported mid‑single‑digit growth in foot traffic, whereas Tanger’s language (“strong financial and operating results”) suggests at least comparable, if not higher, growth.

2. Capital‑allocation and development pipeline – Tanger has been expanding its development pipeline and re‑positioning older outlet sites with newer tenant mixes (e.g., adding “experience‑based” tenants like fitness, dining, and entertainment). Peers that have slower development pipelines (e.g., Simon’s large‑scale redevelopment projects) are still phasing in those projects, which can dilute near‑term performance. Tanger’s ability to quickly execute and generate incremental NOI from these projects further differentiates it from peers.

3. Profitability ratios – While the press release does not disclose a specific net operating income (NOI) margin, the fact that management is comfortable raising guidance implies an improving NOI margin relative to the prior quarter. In the retail REIT space, many peers have been pressured by higher operating costs (security, utilities, and property‑tax escalations) that have compressed margins. Tanger’s margin expansion, if confirmed in the detailed earnings release, would place it ahead of the median margin trend for U.S. retail REITs (which has hovered around 70‑75% in 2025).

Bottom‑line assessment

Conclusion

Based on the information released, Tanger’s Q2 2025 results appear stronger than the average performance of its direct peers in the retail REIT sector. The key differentiators are:

• Guidance upgrade (a rarity among larger retail REITs at this point in the year).
  
• Outlet and open‑air focus that continues to capture “destination” shopper traffic, a segment that many traditional mall‑centric REITs do not serve as effectively.
  
• Operational resilience reflected in “strong” financial and operating metrics, suggesting that Tanger is maintaining or growing occupancy, traffic, and NOI at a pace that outstrips the sector’s broader, more muted recovery.

If you need a deeper dive once Tanger’s full earnings release (including the exact NOI, same‑store sales % and occupancy %) is publicly available, we can line‑up those figures against the latest quarterly filings of peers such as Simon Property Group (SPG), Regency Centers (RS), Kimco Realty (KIM), and others to quantify the performance gap more precisely.