Tanger Factory Outlet Centers Inc. reported earnings that beat analyst expectations for the first quarter.

Adjusted funds from operations, or FFO, for the quarter ending March 31 increased 12 percent to 56 cents a share or $55.8 million, which was higher than last year’s $49.8 million, or 50 cents a share. The FactSet estimate was for 55 cents a share.

“During the first quarter of 2016, traffic into Tanger centers was up more than 6 percent and average tenant sales increased 4.7 percent compared to the first quarter of 2015,” said chief executive officer Steven Tanger. “As a result, average tenant sales for the rolling 12 months ended March 31, 2016, were up 1.5 percent compared to the rolling 12 months ended December 31, 2015, and were stable when compared to the rolling 12 months ended March 31, 2015,” he added.

Net income was $26.9 million, or 28 cents a share, which was lower than last year’s $34.1 million or 36 cents a share. This year, the net income recognized a gain of $4.9 million from the sales of an outlet center in Fort Myers, Fla., while last year the quarter saw a gain from the sale of the company’s interest in the Wisconsin Dells joint venture that brought in $13.7 million.

The consolidated portfolio occupancy rate of 96.6 percent fell from last year’s 96.7 percent. Tanger executed 228 leases totaling 948,000 square feet throughout its consolidated portfolio with a 21.1 percent increase in average base rental rates, on top of a 23.1 percent increase for the quarter.

Tanger also said it has a shadow pipeline of new development opportunities that have yet to be announced and are in the pre-development stage.

Tanger announced a 14 percent increase in the annual cash dividend from $1.14 to $1.30.

Looking ahead, Tanger is forecasting the adjusted funds for operations for the year ending Dec. 31 to be in the range of $2.30 to $2.36 per diluted share.