Dive Brief:
- Real estate investment trust (REIT) Tanger Factory Outlet Centers informed executive James Williams he would no longer serve as the company’s CFO, treasurer, and EVP, or hold any of his roles across company subsidiaries, according to a U.S Securities and Exchange Commission (SEC) filing Monday.
- Williams, who began his tenure as CFO in May 2016, will depart July 1. Tanger has begun searching for a new CFO to fill the chair. Williams’ departure is not the result of a disagreement regarding financial disclosures, accounting matters or any other matter relating to company operations, according to the filing. Stephen Yalof, President and CEO, did not elaborate on the reason for the dismissal in a statement emailed to CFO Dive.
- “We are focused on a transition plan and continuing to execute the strategy we’ve been working on for the past two years, which is to transform from a real estate company to a customer experience company while delivering on our mission of providing the best value, experience, and opportunity for our communities, stakeholders and partners,” Yalof said in an emailed statement sent to CFO Dive.
Dive Insight:
Williams is a 28-year veteran of the Greensboro, North Carolina-based company having initially joined Tanger in September 1993. He served as controller from January 1995 to March 2015 and was the company’s chief accounting officer from March 2013 to May 2016 before transitioning to the CFO role. He worked as a financial reporting manager for Guilford Mills for a four-year period from 1987 to 1991 prior to joining the firm.
Williams was notified May 31 per the filing. The company has not yet announced an interim CFO at this time, said Yalof, and is unable to comment at this time on the progression of its search for a new CFO.
“We have commenced searching for a new Chief Financial Officer to continue to lead Tanger’s evolved mission,” said Yalof. “In the interim, we have two strong senior executives on the finance team, Doug McDonald and Tom Guerrieri, that will continue to lead their functions and will be supported by our executive team.”
Guerrieri has served as the company's chief accounting officer and SVP for a year and a half, and previously served as controller for the REIT firm from May 2017 until January 2021 according to his LinkedIn profile. McDonald has acted as a SVP since joining the company in January 2021, according to LinkedIn.
Details regarding Williams’ severance were also not provided by the company, which noted Tanger and Williams had agreed upon his departure date of July 1.
Williams’ departure follows positive growth for the company so far in 2022, with Tanger boosting its full-year guidance following strong income growth as well as increased tenant sales in its first quarter, according to statements by CEO and President Stephen Yalof during the firm’s most recent earnings call on May 5.
Tanger reported an increase in traffic despite inflation and other consumer worries, with traffic rising 1% in the first quarter compared to the year-earlier period. Occupancy was 94.3% on March 31, compared to 92% in March 2021 and 95.3% on December 31, 2021. Twelve-month tenant sales grew to $464 per square foot, an 18.1% increase from the comparable pre-pandemic March 2019 period.
The company has continued building this year. It broke ground on a six-building, 290,000 square-foot shopping center in Nashville, Tennessee, on May 17 and its current operating properties total approximately 13.6 million square feet — compromising 2,600 stores and over 600 brands — across 20 U.S. states as well as Canada.
