EX-99 2 tfocform8k0604sup.txt EXHIBIT 99.1 SUPPLEMENTAL OPERATING FINANCIALS Tanger Factory Outlet Centers, Inc. Supplemental Operating and Financial Data for the Quarter Ended 06/30/04 Tanger Factory Outlet Centers, Inc. Supplemental Operating and Financial Data June 30, 2004 1 Notice 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, 2003. 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 Portfolio Data: Geographic Diversification................................................4 Property Summary .........................................................5 Portfolio Occupancy at the End of Each Period.............................6 Major Tenants ............................................................7 Lease Expirations as of June 30, 2004.....................................8 Leasing Activity..........................................................9 Financial Data: Consolidated Balance Sheets..............................................10 Consolidated Statements of Operations....................................11 FFO and FAD Analysis.....................................................12 Per Weighted Average Gross Leasable Area (GLA) Analysis..................13 Unconsolidated Joint Venture Information.................................14 Debt Outstanding Summary.................................................15 Future Scheduled Principal Payments......................................16 Investor Information..........................................................17 3 Geographic Diversification As of June 30, 2004 State # of Centers GLA % of GLA ------------------------ -------------- ------------- ----------------- South Carolina (1) (2) 3 1,194,881 13% Georgia 4 949,190 11% New York 1 729,238 8% Texas 2 619,976 7% Alabama (2) 2 615,250 7% Delaware (2) 1 568,787 6% Tennessee 2 513,581 6% Michigan 2 437,651 5% Utah (2) 1 300,602 3% Connecticut (2) 1 291,051 3% Missouri 1 277,883 3% Iowa 1 277,230 3% Oregon (2) 1 270,280 3% Illinois (2) 1 258,114 3% Pennsylvania 1 255,152 3% Louisiana 1 245,199 3% New Hampshire (2) 1 227,966 3% Florida 1 198,789 2% North Carolina 2 187,626 2% Indiana 1 141,051 2% Minnesota 1 134,480 2% California 1 108,950 1% Maine 2 84,313 1% --------------------------------------- ------------- -------------------- Total 34 8,887,240 100% --------------------------------------- ------------- -------------------- (1) Includes one center in Myrtle Beach, SC of which Tanger owns a 50% interest through a joint venture arrangement. (2) Includes nine centers from the Charter Oak portfolio acquired on December 19, 2003 of which Tanger owns a one-third interest through a joint venture arrangement. 4
Property Summary - Occupancy at End of Each Period Shown % % % % % Total GLA Occupied Occupied Occupied Occupied Occupied Location 06/30/04 06/30/04 03/31/04 12/31/03 09/30/03 06/30/03 --------------------------- --------------- -------------- -------------- --------------- -------------- ------------- Riverhead, NY 729,238 99% 99% 100% 99% 100% Rehoboth, DE (2) 568,787 99% 99% 99% n/a n/a Foley, AL (2) 535,675 99% 97% 99% n/a n/a San Marcos, TX 442,486 96% 92% 100% 98% 96% Myrtle Beach, SC (2) 427,388 97% 96% 96% n/a n/a Sevierville, TN 419,023 100% 100% 100% 99% 100% Hilton Head, SC (2) 393,094 89% 88% 89% n/a n/a Commerce II, GA 342,556 97% 92% 96% 94% 97% Howell, MI 325,231 100% 100% 100% 99% 99% Myrtle Beach, SC (1) 374,399 100% 100% 100% 100% 100% Park City, UT (2) 300,602 97% 95% 96% n/a n/a Westbrook, CT (2) 291,051 90% 89% 93% n/a n/a Branson, MO 277,883 100% 97% 100% 100% 99% Williamsburg, IA 277,230 96% 96% 96% 96% 98% Lincoln City, OR (2) 270,280 93% 93% 92% n/a n/a Tuscola, IL (2) 258,114 77% 78% 78% n/a n/a Lancaster, PA 255,152 96% 95% 100% 98% 96% Locust Grove, GA 247,454 99% 98% 100% 100% 99% Gonzales, LA 245,199 93% 93% 99% 95% 99% Tilton, NH (2) 227,966 98% 96% 96% n/a n/a Fort Myers, FL 198,789 82% 86% 94% 86% 89% Commerce I, GA 185,750 68% 69% 77% 74% 71% Terrell, TX 177,490 97% 96% 100% 97% 97% Dalton, GA 173,430 79% 79% 100% 82% 95% Seymour, IN 141,051 82% 80% 77% 75% 74% North Branch, MN 134,480 99% 100% 100% 100% 99% West Branch, MI 112,420 100% 100% 100% 100% 98% Barstow, CA 108,950 95% 88% 87% 87% 80% Blowing Rock, NC 105,448 100% 93% 100% 100% 90% Pigeon Forge, TN 94,558 93% 88% 93% 97% 97% Nags Head, NC 82,178 100% 100% 100% 100% 100% Boaz, AL 79,575 97% 97% 97% 97% 92% Kittery I, ME 59,694 100% 100% 100% 100% 100% Kittery II, ME 24,619 100% 100% 100% 100% 100% LL Bean, NH n/a n/a 100% 100% 91% 91% Clover, NH n/a n/a 100% 100% 100% 100% Casa Grande, AZ n/a n/a n/a n/a 79% 88% --------------------------- --------------- -------------- -------------- --------------- -------------- -------------- Total 8,887,240 95% 94% 96% 95% 96% --------------------------- --------------- -------------- -------------- --------------- -------------- --------------
(1) Includes one center in Myrtle Beach, SC of which Tanger owns a 50% interest through a joint venture arrangement. (2) Includes nine centers from the Charter Oak portfolio acquired on December 19, 2003 of which Tanger owns a one-third interest through a joint venture arrangement. 5 Portfolio Occupancy at the End of Each Period (1) '06/04 '03/04 '12/03 '09/03 '06/03 '03/03 '12/02 '09/02 '06/02 95% 94% 96% 95% 96% 95% 98% 96% 96% (1) Includes one center in Myrtle Beach, SC of which Tanger owns a 50% interest through a joint venture arrangement and the nine centers in the Charter Oak portfolio of which Tanger owns a one-third interest through a joint venture arrangement. 6 Major Tenants (1) Ten Largest Tenants As of June 30, 2004 # of % of Tenant Stores GLA Total GLA --------------------------- ----------- -------------- -------------- The Gap, Inc. 55 561,740 6.3% Phillips-Van Heusen 95 443,084 5.0% Liz Claiborne 45 361,943 4.1% VF Factory Outlet 30 282,884 3.2% Reebok International 33 254,002 2.8% Dress Barn, Inc. 32 227,319 2.6% Polo Ralph Lauren 22 172,104 1.9% Brown Group Retail 36 171,908 1.9% Nike 11 160,078 1.8% Sara Lee Corporation 40 157,726 1.8% --------------------------- ----------- -------------- -------------- Total of All Listed Above 399 2,792,788 31.4% --------------------------- ----------- -------------- -------------- 1) Includes one center in Myrtle Beach, SC of which Tanger owns a 50% interest through a joint venture arrangement and the nine centers in the Charter Oak portfolio of which Tanger owns a one-third interest through a joint venture arrangement. 7 Lease Expirations as of June 30, 2004 Percentage of Total Gross Leasable Area (1) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014+ 9.00% 24.00% 18.00% 16.00% 15.00% 10.00% 2.00% 2.00% 2.00% 1.00% 1.00% Percentage of Total Annualized Base Rent (1) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014+ 7.00% 20.00% 20.00% 18.00% 16.00% 10.00% 3.00% 2.00% 2.00% 1.00% 1.00% 1) Includes one center in Myrtle Beach, SC of which Tanger owns a 50% interest through a joint venture arrangement and the nine centers in the Charter Oak portfolio of which Tanger owns a one-third interest through a joint venture arrangement. 8
Leasing Activity (1) Prior Year to Year to 03/31/04 06/30/04 09/30/04 12/31/04 Date Date ------------------------------------------------- ----------- ------------ ---------- ---------- ----------- ------------- Re-tenanted Space: Number of leases 31 39 70 60 Gross leasable area 130,808 151,154 281,962 207,371 New base rent per square foot $17.09 $15.95 $16.48 $17.06 Prior base rent per square foot $16.42 $15.91 $16.15 $16.59 Percent increase in rent per square foot 4.1% 0.3% 2.1% 2.8% Renewed Space: Number of leases 169 71 240 173 Gross leasable area 755,832 284,953 1,040,785 777,339 New base rent per square foot $14.96 $15.02 $14.97 $13.45 Prior base rent per square foot $13.86 $14.10 $13.92 $13.29 Percent increase in rent per square foot 7.9% 6.5% 7.5% 1.2% Total Re-tenanted and Renewed Space: Number of leases 200 110 310 233 Gross leasable area 886,640 436,107 1,322,747 984,710 New base rent per square foot $15.27 $15.34 $15.30 $14.21 Prior base rent per square foot $14.24 $14.73 $14.40 $13.98 Percent increase in rent per square foot 7.3% 4.2% 6.2% 1.6% ------------------------------------------------- ------------- ---------- ---------- ---------- ----------- ------------- Prior Year to Year to 03/31/04 06/30/04 09/30/04 12/31/04 Date Date ------------------------------------------------- ------------- ---------- ---------- ---------- ----------- ------------- Stores Opening: Number of stores 23 43 66 60 Gross leasable area 84,162 148,549 232,711 194,789 Base rent per square foot $17.26 $18.12 $17.81 $18.00 Stores Closing: Number of stores 52 19 71 69 Gross leasable area 170,909 58,131 229,040 186,726 Base rent per square foot $16.43 $14.91 $16.04 $16.75 Percent increase in rent per square foot 5.1% 21.5% 11.0% 7.5% ------------------------------------------------- ------------- ---------- ---------- ---------- ----------- -------------
1) Includes one center in Myrtle Beach, SC of which Tanger owns a 50% interest through a joint venture arrangement and the nine centers in the Charter Oak portfolio of which Tanger owns a one-third interest through a joint venture arrangement. 9
Consolidated Balance Sheets (dollars in thousands) 06/30/04 03/31/04 12/31/03 09/30/04 06/30/03 -------------------------------------------------- -------------- --------------- -------------- ------------ -------------- Assets Rental property Land $115,541 $118,933 $119,833 $50,474 $50,474 Buildings 965,394 965,948 958,720 583,269 578,665 Developments under construction -- -- -- -- 2,490 -------------------------------------------------- -------------- --------------- -------------- ------------ --------------- Total rental property 1,080,935 1,084,881 1,078,553 633,743 631,629 Accumulated depreciation (209,359) (202,454) (192,698) (191,628) (185,071) -------------------------------------------------- -------------- --------------- -------------- ------------ --------------- Total rental property - net 871,576 882,427 885,855 442,115 446,558 Cash 8,694 10,781 9,836 209 203 Deferred charges - net 64,747 67,114 68,568 9,389 9,398 Other assets 26,963 19,565 23,178 13,666 12,822 -------------------------------------------------- -------------- --------------- -------------- ------------ --------------- Total assets $971,980 $979,887 $987,437 $465,388 $468,972 -------------------------------------------------- -------------- --------------- -------------- ------------ --------------- Liabilities, minority interest & shareholders' equity Liabilities Debt Senior, unsecured notes $147,509 $147,509 $147,509 $147,509 $147,509 Mortgages payable 366,065 368,087 370,160 172,552 173,188 Lines of credit -- 4,825 22,650 7,272 11,890 -------------------------------------------------- -------------- --------------- -------------- ------------ --------------- Total debt 513,574 520,421 540,319 327,333 332,587 Construction trade payables 6,300 5,816 4,345 7,188 8,010 Accounts payable & accruals 18,579 18,507 18,025 13,949 13,328 -------------------------------------------------- -------------- --------------- -------------- ------------ --------------- Total liabilities 538,453 544,744 562,689 348,470 353,925 -------------------------------------------------- -------------- --------------- -------------- ------------ --------------- Minority interest Consolidated joint venture 220,225 220,337 218,148 -- -- Operating partnership 38,731 39,524 39,182 26,202 26,231 -------------------------------------------------- -------------- --------------- -------------- ------------ --------------- Total minority interests 258,956 259,861 257,330 26,202 26,231 -------------------------------------------------- -------------- --------------- -------------- ------------ --------------- Shareholders' equity Common shares 137 135 130 105 103 Paid in capital 272,459 265,087 250,070 171,747 167,034 Distributions in excess of net income (94,603) (89,916) (82,737) (81,063) (78,224) Deferred compensation (3,406) -- -- -- -- Accum. other comprehensive loss (16) (24) (45) (73) (97) -------------------------------------------------- -------------- --------------- -------------- ------------ --------------- Total shareholders' equity 174,571 175,282 167,418 90,716 88,816 -------------------------------------------------- -------------- --------------- -------------- ------------ --------------- Total liabilities, minority interest & shareholders' equity $971,980 $979,887 $987,437 $465,388 $468,972 -------------------------------------------------- -------------- --------------- -------------- ------------ ---------------
10
Consolidated Statements of Operations (dollars and shares in thousands) Three Months Ended YTD 06/04 03/04 12/03 09/03 06/03 06/04 06/03 ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ Revenues Base rentals $32,440 $31,837 $22,188 $19,580 $19,306 $64,277 $38,361 Percentage rentals 957 713 1,459 781 549 1,670 944 Expense reimbursements 13,173 12,016 9,138 8,219 8,226 25,189 16,435 Other income 2,395 858 1,042 1,050 791 3,253 1,450 ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ Total revenues 48,965 45,424 33,827 29,630 28,872 94,389 57,190 ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ Expenses Property operating 14,926 13,588 10,674 9,724 9,749 28,514 19,314 General & administrative 3,254 3,159 2,189 2,490 2,451 6,413 4,881 Depreciation & amortization 13,117 12,312 8,028 6,890 6,880 25,429 13,936 ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ Total expenses 31,297 29,059 20,891 19,104 19,080 60,356 38,131 ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ Operating income 17,668 16,365 12,936 10,526 9,792 34,033 19,059 Interest expense 8,900 8,864 6,779 6,427 6,556 17,764 13,279 ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ Income before equity in earnings of unconsolidated joint ventures, minority interests and discontinued operations 8,768 7,501 6,157 4,099 3,236 16,269 5,780 Equity in earnings of unconsolidated joint ventures 275 165 180 267 279 440 372 Minority interests: Consolidated joint venture (6,619) (6,593) (941) -- -- (13,212) -- Operating partnership (445) (199) (1,166) (985) (757) (644) (1,306) ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ Income from continuing operations 1,979 874 4,230 3,381 2,758 2,853 4,846 Discontinued operations (1) 1,766 138 601 139 (451) 1,904 (348) ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ Net income 3,745 1,012 4,831 3,520 2,307 4,757 4,498 Less applicable preferred share dividends -- -- -- -- (363) -- (806) ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ Net income available to common shareholders $ 3,745 $ 1,012 $ 4,831 $ 3,520 $ 1,944 $ 4,757 $ 3,692 ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ Basic earnings per common share: ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ Income from continuing operations $.15 $.06 $.38 $.33 $.25 $.21 $.43 ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ Net income $.28 $.08 $.44 $.34 $.20 $.35 $.39 ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ Diluted earnings per common share: ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ Income from continuing operations $.15 $.06 $.38 $.32 $.24 $.21 $.42 ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ Net income $.28 $.08 $.43 $.33 $.20 $.35 $.38 ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------ Weighted average common shares: Basic 13,504 13,337 11,008 10,404 9,590 13,420 9,387 Diluted 13,594 13,488 11,183 10,623 9,809 13,541 9,615 ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------
(1) In accordance with SFAS No. 144 "Accounting for the Impairment or Disposal of Long Lived Assets", the results of operations for properties sold, including any gain or loss on such sales, have been reported above as discontinued operations for both the current and prior periods presented. 11
FFO and FAD Analysis (dollars and shares in thousands) Three Months Ended YTD 06/04 03/04 12/03 09/03 06/03 06/04 06/03 -------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Funds from operations: Net income $3,745 $1,012 $4,831 $3,520 $2,307 $4,757 $4,498 Adjusted for - Minority interest in operating partnership 445 199 1,166 985 757 644 1,306 Minority interest adjustment consolidated joint venture (329) 33 (33) --- -- (296) -- Minority interest, depreciation and amortization in discontinued operations 463 95 281 236 118 558 418 Depreciation and amortization uniquely significant to real estate - wholly owned 13,062 12,254 7,967 6,826 6,806 25,316 13,790 Depreciation and amortization uniquely significant to real estate - joint ventures 304 300 294 287 266 604 520 (Gain) Loss on sale of real estate (2,084) -- (588) -- 735 (2,084) 735 -------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Funds from operations $15,606 $13,893 $13,918 $11,854 $10,989 $29,499 $21,267 -------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- -------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Funds from operations per share $.94 $.84 $.98 $.87 $.82 $1.78 $1.60 -------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Funds available for distribution: Funds from operations $15,606 $13,893 $13,918 $11,854 $10,989 $29,499 $21,267 Adjusted For - Corporate depreciation Excluded above 55 58 60 64 73 113 147 Amortization of finance costs 365 367 354 332 309 732 626 Straight line rent adjustment (134) (84) 2 35 55 (218) 112 Below market rent adjustment (310) (60) (37) -- -- (370) -- Market rate interest adjustment (635) (610) (149) -- -- (1,245) -- 2nd generation tenant allowances (1,595) (1,521) (1,457) (1,860) (387) (3,116) (1,804) Capital improvements (2,047) (1,335) (1,796) (241) (1,568) (3,382) (2,613) -------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Funds available for distribution $11,305 $10,708 $10,895 $10,184 $9,471 $22,013 $17,735 -------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Funds available for distribution per share $.68 $.65 $.77 $.75 $.71 $1.33 $1.33 -------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Dividends paid per share $.625 $.615 $.615 $.615 $.615 $1.240 $1.2275 -------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- -------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- FFO payout ratio 66% 73% 63% 71% 75% 70% 77% -------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- FAD payout ratio 92% 95% 80% 82% 87% 93% 92% Diluted weighted average common shares 16,627 16,521 14,216 13,656 13,432 16,574 13,304 -------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -------------
12
Per Weighted Average Gross Leasable Area (GLA) Analysis Three Months Ended YTD 06/04 03/04 12/03 09/03 06/03 06/04 06/03 ------------------------------------------ ---------- ------------ ------------ ------------ ------------ ------------ ------------- GLA open at end of period - (000's) Wholly owned 5,240 5,302 5,299 5,483 5,449 5,240 5,449 Partially owned consolidated (1) 3,273 3,273 3,273 --- --- 3,273 --- Partially owned unconsolidated (2) 374 324 324 318 309 374 309 Managed properties 434 434 434 457 457 434 457 Total GLA open at end of period 9,321 9,333 9,330 6,258 6,215 9,321 6,215 Weighted average GLA (000's) (3) 8,513 8,512 5,699 5,225 5,201 8,513 5,199 End of period occupancy (1) (2) 95% 94% 96% 95% 96% 95% 95% PER SQUARE FOOT Revenues Base rentals $3.81 $3.74 $3.89 $3.75 $3.71 $7.55 $7.38 Percentage rentals .11 .09 .26 .15 .11 .20 .18 Expense reimbursements 1.55 1.41 1.60 1.57 1.58 2.96 3.16 Other income .28 .10 .18 .20 .15 .38 .28 ------------------------------------------ ---------- ------------ ------------ ------------ ------------ ------------ ------------- Total revenues 5.75 5.34 5.93 5.67 5.55 11.09 11.00 ------------------------------------------ ---------- ------------ ------------ ------------ ------------ ------------ ------------- Expenses Property operating 1.75 1.60 1.87 1.86 1.88 3.35 3.71 General & administrative .38 .37 .38 .48 .47 .75 .94 Depreciation & amortization 1.54 1.45 1.41 1.32 1.32 2.99 2.68 ------------------------------------------ ---------- ------------ ------------ ------------ ------------ ------------ ------------- Total expenses 3.67 3.42 3.66 3.66 3.67 7.09 7.33 ------------------------------------------ ---------- ------------ ------------ ------------ ------------ ------------ ------------- Operating income 2.08 1.92 2.27 2.01 1.88 4.00 3.67 ------------------------------------------ ---------- ------------ ------------ ------------ ------------ ------------ ------------- Interest expense 1.05 1.04 1.19 1.23 1.26 2.09 2.56 ------------------------------------------ ---------- ------------ ------------ ------------ ------------ ------------ ------------- Income before equity in earnings of unconsolidated joint ventures, minority interest and discontinued operations $1.03 $.88 $1.08 $.78 $.62 $1.91 $1.11 ------------------------------------------ ---------- ------------ ------------ ------------ ------------ ------------ ------------- Total revenues less property operating and general & administrative expenses ("NOI") $3.62 $3.37 $3.68 $3.33 $3.20 $6.99 $6.35 ------------------------------------------ ---------- ------------ ------------ ------------ ------------ ------------ -------------
(1) Includes the nine centers from the Charter Oak portfolio acquired on December 19, 2003 of which Tanger owns a one-third interest through a joint venture arrangement. (2) Includes one center in Myrtle Beach, SC of which Tanger owns a 50% interest through a joint venture arrangement. (3) Represents GLA of wholly owned and partially owned consolidated operating properties weighted by months of operation. GLA is not adjusted for fluctuations in occupancy that may occur subsequent to the original opening date. Excludes GLA of properties for which their results are included in discontinued operations. 13
Unconsolidated Joint Venture Information - Summary Balance Sheets (dollars in thousands) Tanger's Share as of 06/30/04 03/31/01 12/31/03 09/30/03 06/30/03 06/30/04(1) ------------------------------------- -------------- ------------ ------------ ------------ ------------ --------------- Assets Investment properties at cost - net $69,955 $67,051 $63,899 $35,200 $35,439 $30,460 Cash and cash equivalents 1,381 2,078 4,145 1,377 634 549 Deferred charges - net 1,535 1,596 1,652 1,767 1,872 767 Other assets 3,879 3,334 3,277 2,900 1,995 1,588 ------------------------------------- -------------- ------------ ------------ ------------ ------------ --------------- Total assets $76,750 $74,059 $72,973 $41,244 $39,940 $33,364 ------------------------------------- -------------- ------------ ------------ ------------ ------------ --------------- Liabilities & Owners' Equity Mortgage payable $57,156 $54,811 $54,683 $29,248 $28,692 $24,383 Construction trade payables 3,090 2,501 1,164 751 1,026 1,545 Accounts payable & other liabilities 508 603 564 743 828 254 ------------------------------------- -------------- ------------ ------------ ------------ ------------ --------------- Total liabilities 60,754 57,915 56,411 30,742 30,546 26,182 Owners' equity 15,996 16,144 16,562 10,502 9,394 7,182 ------------------------------------- -------------- ------------ ------------ ------------ ------------ --------------- Total liabilities & owners' equity $76,750 $74,059 $72,973 $41,244 $39,940 $33,364 ------------------------------------- -------------- ------------ ------------ ------------ ------------ ---------------
(1) Tanger's portion of investment properties at cost - net, includes $9 million associated with a development property that generates net income considered incidental to its intended future operation as an outlet center. As such, the net income generated from this property is recorded as a reduction to the carrying value of the property and is therefore not included in the summary statement of operations below.
Summary Statements of Operations (dollars in thousands) Three Months Ended YTD 06/04 03/04 12/03 09/03 06/03 06/04 06/03 ------------------------------------- ------------- ------------ ------------ ------------ ------------- ------------ ------------ Revenues $2,507 $2,075 $2,098 $2,195 $2,158 $4,582 $3,885 ------------------------------------- ------------- ------------ ------------ ------------ ------------- ------------ ------------ Expenses Property operating 946 775 760 726 782 1,721 1,486 General & administrative 12 1 26 1 3 13 20 Depreciation & amortization 631 623 613 599 552 1,254 1,080 ------------------------------------- ------------- ------------ ------------ ------------ ------------- ------------ ------------ Total expenses 1,589 1,399 1,399 1,326 1,337 2,988 2,586 ------------------------------------- ------------- ------------ ------------ ------------ ------------- ------------ ------------ Operating income 918 676 699 869 821 1,594 1,299 Interest expense 405 380 380 372 294 785 619 ------------------------------------- ------------- ------------ ------------ ------------ ------------- ------------ ------------ Net income $513 $296 $319 $497 $527 $809 $680 ------------------------------------- ------------- ------------ ------------ ------------ ------------- ------------ ------------ Tanger's share of: ------------------------------------- ------------- ------------ ------------ ------------ ------------- ------------ ------------ Total revenues less property operating and general & administrative expenses ("NOI") $774 $650 $656 $734 $687 $1,424 $1,190 Net income $274 $165 $180 $267 $280 $439 $372 Depreciation (real estate related) $304 $300 $293 $287 $266 $604 $520 ------------------------------------- ------------- ------------ ------------ ------------ ------------- ------------ ------------
14 Debt Outstanding Summary (dollars in thousands) As of June 30, 2004 Principal Interest Maturity Balance Rate Date ------------------------------------- ------------- ------------- -------------- Mortgage debt Lancaster, PA $13,997 9.770% 04/10/05 Commerce I, GA 7,558 9.125% 09/10/05 Branson, MO 24,000 Libor + 1.75% 03/26/06 Commerce II, GA 29,500 Libor + 1.75% 03/26/06 Dalton, GA 10,812 7.875% 04/01/09 Kittery I, ME 6,152 7.875% 04/01/09 San Marcos I, TX 18,365 7.875% 04/01/09 San Marcos II, TX 18,592 7.980% 04/01/09 West Branch, MI 6,864 7.875% 04/01/09 Williamsburg, IA 18,870 7.875% 04/01/09 Blowing Rock, NC 9,443 8.860% 09/01/10 Nags Head, NC 6,408 8.860% 09/01/10 Consolidated JV Debt 184,896 6.590% 07/10/08 Premium on Consolidated JV Debt (1) 10,608 ------------------------------------- ------------- -------------- ------------- Total mortgage debt 366,065 ------------------------------------- ------------- -------------- ------------- Corporate debt Unsecured credit facilities --- Libor + 1.60% 06/30/05 1997 Senior unsecured notes 47,509 7.875% 10/24/04 2001 Senior unsecured notes 100,000 9.125% 02/15/08 ------------------------------------- ------------- -------------- ------------- Total corporate debt 147,509 ------------------------------------- ------------- -------------- ------------- Total debt $513,574 ------------------------------------- ------------- -------------- ------------- (1) Represents a premium on mortgage debt with an imputed interest rate of 4.97% assumed in the Charter Oak acquisition joint venture, which is consolidated on Tanger's balance sheet. 15 Future Scheduled Principal Payments (dollars in thousands) As of June 30, 2004 Scheduled Total Amortization Balloon Scheduled Payments Payments Payments ------------------------------- ---------------- ------------- 2004 $2,960 $47,509 $50,469 2005 5,842 20,577 26,419 2006 5,715 53,500 59,215 2007 6,140 -- 6,140 2008 4,872 270,351 275,223 2009 967 70,474 71,441 2010 181 13,878 14,059 2011 -- -- -- 2012 -- -- -- 2013 -- -- -- 2014 & thereafter -- -- -- ------------------------------- ---------------- ------------- $26,677 $476,289 $502,966 Premium on Consolidated JV Debt (1) 10,608 ------------------------------------------------ ------------- $513,574 ----------------------------- ------------------ ------------- (1) Represents a premium on mortgage debt assumed in the Charter Oak acquisition joint venture, which is consolidated on Tanger's balance sheet. 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