EX-99 3 tfocform8k0902ex.txt EXHIBIT 99.1 Tanger Factory Outlet Centers, Inc. Supplemental Operating and Financial Data for the Quarter Ended 09/30/02 Tanger Factory Outlet Centers, Inc. Supplemental Operating and Financial Data September 30, 2002 1 Notice This Supplemental Operating and Financial Data may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which reflect management's current views with respect to future events and financial performance relating to our re-merchandising strategy, the renewal and re-tenanting of space, tenant sales and sales trends, interest rates, fund from operations, the development of new centers, the opening of ongoing expansions, coverage of the current dividend and the impact of sales of land parcels. These forward-looking statements are subject to risks and uncertainties. Actual results could differ materially from those projected due to various factors including, but not limited to, the risks associated with general economic and local real estate conditions, the availability and cost of capital, our ability to lease our properties, our inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise, and competition. For a more detailed discussion of the factors that affect our operating results, interested parties should review the Tanger Factory Outlet Centers, Inc. Annual Report on Form 10-K for the fiscal year ended December 31, 2001. This Supplemental Operating and Financial Data is not an offer to sell or a solicitation to buy any securities of the Company. Any offers to sell or solicitations to buy any securities of the Company shall be made only by means of a prospectus. < 2 Table of Contents Section Page Quarterly Highlights from Press Release Dated October 29, 2002 4 Portfolio Data Geographic Diversification 6 Property Summary - Occupancy 7 Major Tenants 8 Lease Expirations 9 Leasing Activity 10 Financial Data Consolidated Balance Sheets 11 Consolidated Statements of Operations 12 FFO and FAD Analysis 13 Per Weighted Average Gross Leasable Area (GLA) Analysis 14 Debt Outstanding Summary 15 Future Scheduled Principal Payments 16 Investor Information 17 3 Quarterly Highlights from Press Release dated October 29, 2002 Greensboro, NC, October 29, 2002, Tanger Factory Outlet Centers, Inc. (NYSE:SKT) today reported funds from operations (FFO) for the third quarter of 2002 increased 10% to $10.3 million, or $.84 per share, compared to $9.4 million, or $.80 per share, in the same quarter of 2001. On a per share basis, FFO increased by 5% in the third quarter of 2002 to $.84, compared to $.80 in the same quarter of 2001. For the nine months ended September 30, 2002, FFO increased 9% to $28.6 million, or $2.38 per share, compared to $26.3 million or $2.24 per share, in the same period of 2001. On a per share basis, FFO increased by 6% for the nine months ended September 30, 2002 to $2.38, compared to $2.24 in the same period of 2001. Net income for the third quarter of 2002 increased 29% to $.22 per share compared to net income of $.17 per share in the same quarter of 2001. Net income for the first nine months of 2002 increased 67% to $.55 per share compared to $.33 per share for the same period of 2001. All FFO and net income calculations are on a fully diluted basis and assume full conversion of the minority interest in the operating partnership. Based on current market conditions, we currently expect our 2003 FFO to range between $3.41 and $3.49 per share for the year. On a quarterly basis, we expect FFO for 2003 to range between $.78 and $.80 per share in the first quarter, $.79 to $81 per share in the second quarter, $.85 to $.87 per share in the third quarter and $.99 to $1.01 per share in the fourth quarter of the year. Reported same-space sales per square foot for the rolling twelve months ended September 30, 2002 were $297 per square foot. This represents a 6% increase compared to the same period in 2001. Same-space sales is defined as the weighted average sales per square foot reported in space open for the full duration of each comparison period. Our ability to attract high volume tenants to many of our outlet centers continues to improve the average sales per square foot throughout our portfolio. During 2002, we have added 26 new tenants to our portfolio, 18 of which were added in the third quarter, including Baby Gap, Dooney and Bourke, Puma, Chico's, Escada and Versace. Reported tenant sales for the first nine months of 2002 for all Tanger Outlet Centers increased 2% to $985 million compared to $968 million in 2001. Reported same-store sales for the nine months ended September 30, 2002, defined as the weighted average sales per square foot reported by tenants for stores open since January 1, 2001 were flat. Sales in the third quarter were adversely affected by several hurricanes and unseasonably warm weather during the important Back to School season. Through September 30, 2002, we renewed approximately 744,000 square feet, or 80%, of the 935,000 square feet coming up for renewal during the current year at an average base rental rate 1% higher than the expiring rate. We anticipate that most of the remaining leases up for renewal will either be renewed with the existing tenants during 2002 or re-tenanted during the next twelve months. We also re-tenanted approximately 191,000 square feet of vacant space during the first nine months of 2002 at a 3% increase in the average base rental rate from that which was charged previously. In September 2002, we completed a 1,000,000 common share offering that generated net proceeds of approximately $28,000,000. No current shareholders, including the Tanger family, sold any shares through this public offering. As a result of the offering, on a fully diluted basis, there are 12,785,719 shares outstanding, of which the Tanger family continues to own 3,190,651 shares, representing approximately 25% of the company's fully diluted shares. The average shares traded each day have increased substantially during the past year. 4 Immediately following this capital transaction, we completed the acquisition of Kensington Valley Factory Shops located in Howell, Michigan, within the greater Detroit metropolitan region. The established center contains approximately 325,000 square feet, is 100% occupied, and has been renamed the Tanger Outlet Center at Kensington Valley. The purchase price of $37.5 million represents an approximate 12% capitalization rate on the existing net operating income. The accretive acquisition was funded with proceeds from the sale of our Fort Lauderdale property in June of this year and a portion of the net proceeds from the one million common share offering. We also announced during the third quarter that John Hancock Life Insurance Company has retained us for a fee as the exclusive manager of an existing 329,000 square foot factory outlet shopping center located in Vero Beach, Florida. The property is in the process of being renamed Tanger Outlet Center at Vero Beach. We will manage the day-to-day operations, marketing and leasing of the established outlet center. Stanley K. Tanger, Chairman of the Board and Chief Executive Officer, said, "Our third quarter was full of activity and our results came in as expected. We completed a very successful common share offering and immediately put those funds to work with the acquisition of the center in Howell, Michigan. We were also pleased that John Hancock has selected the Tanger management team to oversee their outlet center in Vero Beach, Florida. We believe we can add value to the center through capitalizing on the Tanger brand name, increasing consumer traffic and improving the tenant mix at the center. We are proud that our company has paid out over $226,000,000 in cumulative dividends to shareholders during the past 37 consecutive quarters. Historically a portion of the dividend is classified as return of capital and may have advantageous tax benefits to investors. Tanger Factory Outlet Centers, Inc., a fully integrated, self-administered and self-managed publicly-traded REIT, presently has ownership interests in or management responsibilities for 34 shopping centers in 21 states coast-to-coast, totaling approximately 6,200,000 million square feet, leased to over 1,500 stores that are operated by over 250 different brand name companies. As of September 30, 2002, our existing wholly and partially owned centers were 96% occupied. We are filing a Form 8-K with the Securities and Exchange Commission that includes a supplemental information package for the quarter ended September 30, 2002. For more information on Tanger Outlet Centers, visit our web site at www.tangeroutlet.com. 5
Geographic Diversification As of September 30, 2002 ----------------------------- ------------------ ------------- --------------- State # of Centers GLA $ of GLA ----------------------------- ------------------ ------------- --------------- Georgia 4 950,590 17% New York 1 729,238 13% Texas 2 619,426 11% Tennessee 2 448,535 8% Michigan 2 437,651 8% Missouri 1 277,494 5% Iowa 1 277,230 5% South Carolina (1) 1 260,006 5% Pennsylvania 1 255,059 4% Louisiana 1 245,199 4% Florida 1 198,789 3% North Carolina 2 187,702 3% Arizona 1 184,768 3% Indiana 1 141,051 3% Minnesota 1 134,480 2% California 1 105,950 2% Maine 2 84,397 1% Alabama 1 80,775 1% New Hampshire 2 61,745 1% West Virginia 1 49,252 1% Massachusetts 1 23,417 --% ----------------------------- ------------------ ------------- --------------- Total 30 5,752,754 100% ----------------------------- ------------------ ------------- --------------- (1) Includes one center totaling 260,006 sq. ft. of which Tanger owns a 50% interest through a joint venture arrangement. Property Summary - Occupancy
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Property Summary - Occupancy % % % % % Total GLA Occupied Occupied Occupied Occupied Occupied Location 09/30/02 09/30/02 06/30/02 03/31/02 12/31/01 09/30/01 -------------------- --------------- -------------- -------------- --------------- -------------- -------------- Riverhead, NY 729,238 99% 99% 98% 100% 96% San Marcos, TX 441,936 98% 98% 98% 98% 97% Sevierville, TN 353,977 100% 100% 100% 100% 100% Commerce II, GA 342,556 96% 97% 95% 99% 97% Howell, MI 325,231 100% n/a n/a n/a n/a Branson, MO 277,494 100% 98% 94% 100% 99% Williamsburg, IA 277,230 99% 98% 97% 96% 97% Myrtle Beach, SC (1) 260,006 100% 100% n/a n/a n/a Lancaster, PA 255,059 96% 96% 94% 100% 100% Locust Grove, GA 248,854 100% 98% 100% 98% 97% Gonzales, LA 245,199 98% 96% 97% 97% 99% Sanibel, FL 198,789 97% 93% 96% 97% 94% Commerce I, GA 185,750 87% 90% 84% 79% 81% Casa Grande, AZ 184,768 90% 89% 89% 94% 84% Terrell, TX 177,490 100% 95% 96% 94% 92% Dalton, GA 173,430 98% 96% 90% 94% 95% Seymour, IN 141,051 80% 76% 73% 76% 74% North Branch, MN 134,480 100% 100% 100% 100% 99% West Branch, MI 112,420 100% 98% 100% 95% 95% Barstow, CA 105,950 57% 57% 59% 76% 76% Blowing Rock, NC 105,448 100% 100% 100% 100% 100% Pigeon Forge, TN 94,558 94% 100% 100% 96% 94% Nags Head, NC 82,254 100% 100% 100% 100% 100% Boaz, AL 80,775 91% 93% 93% 93% 93% Kittery I, ME 59,694 100% 100% 100% 100% 100% LL Bean, NH 50,745 100% 100% 100% 100% 100% Martinsburg, WV 49,252 51% 57% 73% 93% 100% Kittery II, ME 24,703 94% 94% 94% 100% 100% Bourne, MA 23,417 100% 100% 100% 100% 100% Clover, NH 11,000 100% 100% 100% 100% 100% Ft Lauderdale, FL n/a n/a n/a 100% 100% 100% ------------------------ --------------- -------------- -------------- --------------- -------------- -------------- Total 5,752,754 96% 96% 95% 96% 95% ------------------------ --------------- -------------- -------------- --------------- -------------- --------------
Portfolio Weighted Average Occupancy at the End of Each Period 09/02 06/02 03/02 12/01 09/01 06/01 03/01 12/01 09/00 --------------------------------------------------------------------- 96% 96% 95% 96% 95% 94% 95% 96% 95% (1) Includes one center totaling 260,006 sq. ft. of which Tanger owns a 50% interest through a joint venture arrangement. Major Tenants 7
Ten Largest Tenants As of September 30, 2002 ------------------------------ ----------- -------------- ----------------- # of % of Tenant Stores GLA Total of GLA ------------------------------ ----------- -------------- ----------------- The Gap, Inc. 37 386,111 6.7% Phillips-Van Heusen 73 324,881 5.6% Liz Claiborne 40 324,155 5.6% Reebok International 25 178,361 3.1% Dress Barn, Inc. 20 143,512 2.5% Sara Lee Corporation 32 123,040 2.1% Mikasa 15 120,086 2.1% Brown Group Retail 24 118,246 2.1% Polo Ralph Lauren 16 110,451 1.9% VF Factory Outlet 4 105,697 1.8% ------------------------------ ----------- -------------- ----------------- Total of All Listed Above 286 1,934,540 33.6% ------------------------------ ----------- -------------- ----------------- (1) Includes one center totaling 260,006 sq. ft. of which Tanger owns a 50% interest through a joint venture arrangement.
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Lease Expirations as of September 30, 2002 Percentage of Total Gross Leasable Area (1) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 and after 4% 16% 21% 15% 15% 14% 5% 2% 1% 2% 5% Percentage of Total Annualized Base Rent (1) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 and after 4% 16% 21% 15% 15% 14% 5% 2% 1% 2% 5% (1) Includes one center totaling 260,006 sq. ft. of which Tanger owns a 50% interest through a joint venture arrangement.
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Leasing Activity Year 03/31/02 06/30/02 09/30/02 12/31/02 to Date ---------------------------------------------------- ------------- -------------- ------------- ------------ ------------ Re-tenanted Space: Number of leases 24 10 18 52 Gross leasable area 93,943 37,653 59,821 191,417 New base rent per square foot $13.93 $18.20 $16.62 $15.61 Prior base rent per square foot $12.75 $18.34 $16.79 $15.11 Percent increase in rent per square foot 9.2% (0.8%) (1.0%) 3.3% Renewed Space: Number of leases 115 33 52 200 Gross leasable area 403,956 129,040 211,221 744,217 New base rent per square foot $16.24 $18.22 $12.09 $15.41 Prior base rent per square foot $15.49 $17.44 $13.34 $15.22 Percent increase in rent per square foot 4.8% 4.5% (9.4%) 1.2% Total Re-tenanted and Renewed Space: Number of leases 139 43 70 252 Gross leasable area 497,899 166,693 271,042 935,634 New base rent per square foot $15.81 $18.22 $13.09 $15.45 Prior base rent per square foot $14.97 $17.64 $14.08 $15.20 Percent increase in rent per square foot 5.6% 3.3% (7.0%) 1.6%
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Consolidated Balance Sheets (dollars in thousands) 09/30/02 06/30/02 03/31/02 12/31/02 09/30/01 ---------------------------------------------------- ------------- ------------ ------------- -------------- ------------- Assets Rental Property Land $52,345 $50,176 $60,196 $60,158 $59,858 Buildings 571,826 535,438 541,010 539,108 538,342 ---------------------------------------------------- ------------- ------------ ------------- -------------- ------------- Total rental property 624,171 585,614 601,206 599,266 598,200 Accumulated depreciation (168,327) (161,612) (155,614) (148,950) (142,182) ---------------------------------------------------- ------------- ------------ ------------- -------------- ------------- Total rental property - net 455,844 424,002 445,592 450,316 456,018 Cash 209 204 210 515 198 Deferred charges - net 10,494 10,465 11,084 11,413 11,666 Other assets 13,543 30,783 12,183 14,028 16,406 ---------------------------------------------------- ------------- ------------ ------------- -------------- ------------- Total assets $480,090 $465,454 $469,069 $476,272 $484,288 ---------------------------------------------------- ------------- ------------ ------------- -------------- ------------- Liabilities & Shareholders' Equity Liabilities Debt Senior, unsecured notes $155,609 $155,609 $155,609 $160,509 $175,000 Mortgages payable 175,018 175,603 176,176 176,736 177,285 Lines of credit 16,269 26,625 27,786 20,950 10,628 ---------------------------------------------------- ------------- ------------ ------------- -------------- ------------- Total debt 346,896 357,837 359,571 358,195 362,913 Construction trade payables 4,041 4,141 3,934 3,722 6,431 Accounts payable & accruals 14,743 12,943 11,278 16,478 14,191 ---------------------------------------------------- ------------- ------------ ------------- -------------- ------------- Total liabilities 365,680 374,921 374,783 378,395 383,535 ---------------------------------------------------- ------------- ------------ ------------- -------------- ------------- Minority interest 23,727 19,326 20,386 21,506 22,302 ---------------------------------------------------- ------------- ------------ ------------- -------------- ------------- Shareholders' equity Preferred shares 1 1 1 1 1 Common shares 90 80 80 79 79 Paid in capital 160,589 138,177 137,684 136,529 136,529 Distributions in excess of net income (69,672) (66,619) (63,370) (59,534) (57,403) Accum. other comprehensive income (325) (432) (495) (704) (755) ---------------------------------------------------- ------------- ------------ ------------- -------------- ------------- Total shareholders' equity 90,683 71,207 73,900 76,371 78,451 ---------------------------------------------------- ------------- ------------ ------------- -------------- ------------- Total liabilities & shareholders' equity $480,090 $465,454 $469,069 $476,272 $484,288 ---------------------------------------------------- ------------- ------------ ------------- -------------- -------------
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Consolidated Statements of Operations (dollars and shares in thousands) ---------------------------------------- ----------------------------------------------------------------- ------------------------ Three Months Ended YTD ---------------------------------------- ----------------------------------------------------------------- ------------------------ 09/02 06/02 03/02 12/01 09/01 09/02 09/01 ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ----------- Revenues Base rentals $18,839 $18,532 $18,181 $19,303 $18,393 $55,552 $54,419 Percentage rentals 778 581 597 1,287 598 1,956 1,448 Expense reimbursements 7,411 7,333 7,301 7,548 7,126 22,046 22,171 Other income 1,045 508 573 849 846 2,193 1,923 ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ----------- Total revenues 28,073 26,954 26,652 28,987 26,963 81,747 79,961 ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ----------- Expenses Property operating 8,654 8,677 8,656 8,390 8,334 25,988 25,761 General & administrative 2,623 2,092 2,275 2,134 2,012 6,990 6,097 Interest 7,171 7,118 7,129 7,297 7,546 21,418 22,837 Depreciation & amortization 7,201 7,116 7,083 7,143 7,112 21,400 21,070 ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ----------- Total expenses 25,649 25,003 25,143 24,964 25,004 75,796 75,765 ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ----------- Income before income from unconsolidated joint ventures, minority interest, discontinued operations and extraordinary item 2,424 1,951 1,509 4,023 1,959 5,951 4,196 Income from unconsolidated joint ventures 317 -- -- -- -- 250 -- Minority interest (617) (414) (294) (991) (419) (1,326) (793) ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ----------- Income from continuing operations 2,124 1,537 1,215 3,032 1,540 4,875 3,403 Discontinued operations (1) 184 557 230 231 230 972 690 ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ----------- Income before extraordinary item 2,308 2,094 1,445 3,263 1,770 5,847 4,093 Extraordinary item - loss on early extinguishments of debt -- -- -- (114) -- -- (130) ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ----------- Net Income 2,308 2,094 1,445 3,149 1,770 5,847 3,963 Less applicable preferred share dividends (443) (442) (444) (443) (443) (1,329) (1,328) ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ----------- Net income available to common shareholders $1,865 $1,652 $1,001 $2,706 $1,327 $4,518 $2,635 ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ----------- Basic earnings per common share: ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ----------- Income from continuing operations $.20 $.14 $.10 $.33 $.14 $.44 $.26 ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ----------- Net income $.22 $.21 $.13 $.34 $.17 $.56 $.33 ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ----------- Diluted earnings per common share: ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ----------- Income from continuing operations $.20 $.13 $.10 $.33 $.14 $.43 $.26 ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ----------- Net income $.22 $.20 $.12 $.34 $.17 $.55 $.33 ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ----------- Weighted average common shares: Basic 8,269 8,015 7,948 7,930 7,930 8,078 7,925 Diluted 8,490 8,229 8,028 7,946 7,954 8,254 7,949 ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ----------- (1) In accordance with SFAS No. 144 "Accounting for the Impairment or Disposal of Long Lived Assets", the results of operations for property disposed of during the year have been reported above as discontinued operations for both the current and prior periods presented. Includes a gain on the sale of a previously leased outparcel of land of $243 for the three and nine months ended September 30, 2002 and a gain on the sale of real estate of $460 for the nine months ended September 30, 2002. FFO and FAD Analysis (dollars and shares in thousands)
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FFO and FAD Analysis (dollars and shares in thousands) ----------------------------------------- ---------------------------------------------------------------- ------------------------ Three Months Ended YTD ----------------------------------------- ---------------------------------------------------------------- ------------------------ 09/02 06/02 03/02 12/01 09/01 09/02 09/01 ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ---------- Funds from operations: Net income $2,308 $2,094 $1,445 $3,149 $1,770 $5,847 $3,963 Adjusted for - Extraordinary item -- -- 114 -- -- 130 Minority interest 617 414 294 991 419 1,326 793 Minority interest, depreciation and amortization in discontinued operations 67 293 178 178 178 537 533 Depreciation and amortization uniquely significant to Real estate - wholly owned 7,124 7,042 7,010 7,071 7,043 21,176 20,846 Depreciation and amortization uniquely significant to Real estate - joint ventures 168 -- 168 -- Gain on sale of real estate -- (460) -- -- -- (460) -- ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ---------- Funds from operation $10,284 $9,383 $8,927 $11,503 $9,410 $28,594 $26,265 ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ---------- ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ---------- Funds from operations per share $.84 $.78 $.76 $.98 $.80 $2.38 $2.24 ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ---------- Funds available for distribution: Funds from operations $10,284 $9,383 $8,927 $11,503 $9,410 $28,594 $26,265 Plus - Corporate depreciation excluded above 77 75 73 72 69 225 224 Amortization of finance costs 313 289 303 330 326 905 1,330 Straight line rent adjustment 91 60 41 73 96 192 269 Less - 2nd generation tenant allowances (136) (429) (1,206) (1,337) (1,567) (1,771) (4,668) Capital improvements (899) (578) (370) (803) (1,708) (1,847) (2,598) ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ---------- Funds available for distribution $9,730 $8,800 $7,768 $9,838 $6,626 $26,298 $20,822 ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ---------- ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ---------- Funds available for distribution per share $.79 $.73 $.66 $.84 $.57 $2.19 $1.78 ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ---------- ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ---------- Dividends paid per share $.6125 $.6125 $.61 $.61 $.61 $1.8350 $1.8275 ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ---------- ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ---------- FFO payout ratio 73% 79% 80% 62% 76% 77% 82% ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ---------- ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ---------- FAD payout ratio 78% 84% 92% 73% 107% 84% 103% Diluted weighted average common shares 12,245 11,985 11,787 11,705 11,713 12,011 11,708 ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ----------
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Per Weighted Average Gross Leasable Area (GLA) Analysis ------------------------------------- ----------------------------------------------------------------- ------------------------ Three Months Ended YTD ------------------------------------- ----------------------------------------------------------------- ------------------------ 09/02 06/02 03/02 12/01 09/01 09/02 09/01 ------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ----------- GLA open at end of period - Wholly owned (000's) 5,493 5,167 5,332 5,332 5,326 5,493 5,326 Partially owned (000's) (1) 260 260 -- -- -- 260 -- Managed properties (000's) 434 105 105 105 105 434 105 Total GLA open at end of period 6,187 5,532 5,437 5,437 5,431 6,187 5,431 Weighted average GLA (000's) (2) 5,245 5,167 5,167 5,165 5,152 5,193 5,124 End of period occupancy (1) 96% 96% 95% 96% 95% 96% 94% PER SQUARE FOOT Revenues Base rentals $3.59 $3.59 $3.52 $3.74 $3.57 $10.70 $10.62 Percentage rentals .15 .11 .12 .25 .12 .38 .28 Expense reimbursements 1.41 1.42 1.41 1.46 1.38 4.25 4.33 Other income .20 .10 .11 .16 .16 .42 .38 ------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ----------- Total revenues 5.35 5.22 5.16 5.61 5.23 15.75 15.61 ------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ----------- Expenses Property operating 1.65 1.68 1.68 1.62 1.62 5.00 5.03 General & administrative .50 .40 .44 .41 .39 1.35 1.19 Interest 1.37 1.38 1.38 1.41 1.46 4.12 4.46 Depreciation & amortization 1.37 1.38 1.37 1.38 1.38 4.12 4.11 ------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ----------- Total expenses 4.89 4.84 4.87 4.82 4.85 14.59 14.79 ------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ----------- Income before minority interest, discontinued operations and extraordinary item $.46 $.38 $.29 $.79 $.38 $1.16 $.82 ------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ----------- Net operating income $3.20 $3.13 $3.04 $3.58 $3.22 $9.39 $9.39 ------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ----------- Funds from operations $1.96 $1.82 $1.73 $2.23 $1.83 $5.51 $5.13 ------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ----------- (1) Includes one center totaling 260,006 sq. ft. of which Tanger owns a 50% interest through a joint venture arrangement. (2) Represents GLA of wholly owned properties weighted by months of operation. GLA is not adjusted for fluctuations in occupancy that may occur subsequent to the original opening date. Debt Outstanding Summary (dollars in thousands)
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Debt Outstanding Summary (dollars in thousands) -------------------------------------------------------------------------------------------------------- As of September 30, 2002 -------------------------------------------------------------------------------------------------------- Principal Interest Maturity Balance Rate Date ----------------------------------------- -------------- ------------------------------ ---------------- Mortgage debt Lancaster, PA $14,595 9.770% 04/10/05 Commerce I, GA 8,401 9.125% 09/10/05 Branson, MO 24,000 Libor + 1.75% 03/26/06 Commerce II, GA (1) 29,500 Libor + 1.75% 03/26/06 Dalton, GA 11,183 7.875% 04/01/09 Kittery I, ME 6,363 7.875% 04/01/09 San Marcos I, TX 18,994 7.875% 04/01/09 San Marcos II, TX 19,105 7.980% 04/01/09 West Branch, MI 7,099 7.875% 04/01/09 Williamsburg, IA 19,516 7.875% 04/01/09 Blowing Rock, NC 9,688 8.860% 09/01/10 Nags Head, NC 6,574 8.860% 09/01/10 ----------------------------------------- -------------- ------------------------------ ---------------- Total mortgage debt 175,018 ----------------------------------------- -------------- ------------------------------ ---------------- Corporate debt Unsecured credit facilities 6,000 Libor + (1.60% to 1.75%) 06/30/03 Unsecured credit facilities 10,269 Libor + (1.60% to 1.75%) 06/30/04 1997 Senior unsecured notes 55,609 7.875% 10/24/04 2001 Senior unsecured notes 100,000 9.125% 02/15/08 ----------------------------------------- -------------- ------------------------------ ---------------- Total corporate debt 171,878 ----------------------------------------- -------------- ------------------------------ ---------------- Total debt $346,896 ----------------------------------------- -------------- ------------------------------ ---------------- (1) $25 million of this loan has been fixed until 01/27/03 at 7.72% through the use of an interest rate swap agreement. Future Scheduled Principal Payments (dollars in thousands)
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Future Scheduled Principal Payments (dollars in thousands) ------------------------------------------------------------------------------------------- As of September 30, 2002 ------------------------------------------------------------------------------------------- Scheduled Total Amortization Balloon Scheduled Year Payments Payments Payments ------------------------- -------------------- --------------------- ---------------------- 2002 $570 $ ------ $570 2003 (1) 2,516 6,000 8,516 2004 (1) 2,737 65,878 68,615 2005 2,556 20,577 23,133 2006 2,168 53,500 55,668 2007 2,349 -- 2,349 2008 2,545 100,000 102,545 2009 967 70,474 71,441 2010 181 13,878 14,059 2011 -- -- -- 2012 & thereafter -- -- -- ------------------------- -------------------- --------------------- ---------------------- $16,589 $330,307 $346,896 ------------------------- -------------------- --------------------- ---------------------- (1) Balloon payments in 2003 and 2004 include $6,000 and $10,269, respectively relating to amounts outstanding under the unsecured credit facilities.
16 Investor Information Tanger Outlet Centers welcomes any questions or comments from shareholders, analysts, investment managers, media and prospective investors. Please address all inquiries to our Investor Relations Department. Tanger Factory Outlet Centers, Inc. Investor Relations Phone: (336) 292-3010 ext 6865 Fax: (336) 297-0931 e-mail: tangermail@tangeroutlet.com --------------------------- Mail: Tanger Factory Outlet Centers, Inc. 3200 Northline Avenue Suite 360 Greensboro, NC 27408 17