Tanger Factory Outlet Centers, Inc. reported third-quarter financial results on Thursday that showed improving rent collection and customer as the retail sector continues to recover from the COVID-19 pandemic’s impact.

For the third quarter, the outlet operator reported net income of $12.9 million, or 14 cents per share, versus $23.2 million, or 25 cents per share in the same period a year ago.

Tanger noted that rent collection improved sequentially to 89 percent of billed rents, compared to 43 percent in the second quarter. The company expects to collect another 3 percent of its rents, which are being deferred or still under negotiation. Tanger doesn’t anticipate collecting about 5 percent of rents because of bankruptcies, one-time confessions or tenant financial weakness.

During the quarter, traffic rebounded despite fewer operating hours and limited capacity inside stores In September, traffic improved to more than 98 percent of prior-year levels.

“For shoppers, our open-air outdoor centers offer an inviting way to find the brands and value they seek, as evidenced by the rebound in traffic that we experienced as the third quarter progressed. We believe we are well-positioned to capture pent-up demand going into this holiday shopping season and beyond,” CEO Steven Tanger said on a call with analysts.

Tanger’s liquidity increased to $640 million, including cash, cash equivalents, and unused capacity under its $600 million in unsecured lines of credit.

The company didn’t reinstate its guidance due to “the ongoing uncertainty around the current environment,” Tanger said.

Tanger Factory Outlet Centers, Inc. is a Greensboro, N.C.-based real estate investment trust (REIT) with a focus on outlet shopping centers. The company has 38 shopping centers spread across the U.S. and Canada.

Shares of Tanger Outlets rose 9.94 percent, or 64 cents, to close at $7.08 on Friday.