EX-99 3 tfocform8k0904sup.txt EXHIBIT 99.2 SUPPLEMENTAL OPERATION FINANCIALS 1 Tanger Factory Outlet Centers, Inc. Supplemental Operating and Financial Data for the Quarter Ended 09/30/04 Tanger Factory Outlet Centers, Inc. Supplemental Operating and Financial Data September 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 September 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 September 30, 2004 -------------------------------------------------------------------------------- State # of Centers GLA % of GLA --------------------------- ---------------- ------------------ --------------- South Carolina (1) (2) 3 1,211,029 14% Georgia 3 775,760 9% New York 1 729,238 8% Texas 2 619,976 7% Alabama (2) 2 615,250 7% Delaware (2) 1 568,873 7% Tennessee 2 513,717 6% Michigan 2 437,051 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) 1 256,514 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 2 187,510 2% Indiana 1 141,051 2% Minnesota 1 134,480 2% California 1 108,950 1% Maine 2 84,313 1% ------------------------- ----------------- ------------------- --------------- Total 33 8,727,864 100% ------------------------- ----------------- ------------------- --------------- (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 % Occupied % Occupied % Occupied % Occupied % Occupied Total GLA 09/30/04 06/30/04 3/31/04 12/31/03 09/30/03 Location 09/30/04 ----------------------------- --------------- -------------- -------------- --------------- -------------- -------------- Riverhead, NY 729,238 99% 99% 99% 100% 99% Rehoboth, DE (2) 568,873 99% 99% 99% 99% n/a Foley, AL (2) 535,675 99% 99% 97% 99% n/a San Marcos, TX 442,486 97% 96% 92% 100% 98% Myrtle Beach, SC (2) 427,388 96% 97% 96% 96% n/a Sevierville, TN 419,023 100% 100% 100% 100% 99% Hilton Head, SC (2) 393,094 91% 89% 88% 89% n/a Myrtle Beach, SC (1) 390,547 100% 100% 100% 100% 100% Commerce II, GA 342,556 98% 97% 92% 96% 94% Howell, MI 324,631 100% 100% 100% 100% 99% Park City, UT (2) 300,602 97% 97% 95% 96% n/a Westbrook, CT (2) 291,051 93% 90% 89% 93% n/a Branson, MO 277,883 100% 100% 97% 100% 100% Williamsburg, IA 277,230 97% 96% 96% 96% 96% Lincoln City, OR (2) 270,280 95% 93% 93% 92% n/a Tuscola, IL (2) 256,514 76% 77% 78% 78% n/a Lancaster, PA 255,152 99% 96% 95% 100% 98% Locust Grove, GA 247,454 98% 99% 98% 100% 100% Gonzales, LA 245,199 97% 93% 93% 99% 95% Tilton, NH (2) 227,966 98% 98% 96% 96% n/a Fort Myers, FL 198,789 87% 82% 86% 94% 86% Commerce I, GA 185,750 68% 68% 69% 77% 74% Terrell, TX 177,490 97% 97% 96% 100% 97% Seymour, IN 141,051 85% 82% 80% 77% 75% North Branch, MN 134,480 100% 99% 100% 100% 100% West Branch, MI 112,420 100% 100% 100% 100% 100% Barstow, CA 108,950 100% 95% 88% 87% 87% Blowing Rock, NC 105,332 100% 100% 93% 100% 100% Pigeon Forge, TN 94,694 96% 93% 88% 93% 97% Nags Head, NC 82,178 100% 100% 100% 100% 100% Boaz, AL 79,575 95% 97% 97% 97% 97% Kittery I, ME 59,694 100% 100% 100% 100% 100% Kittery II, ME 24,619 100% 100% 100% 100% 100% Dalton, GA n/a n/a 79% 79% 100% 82% LL Bean, NH n/a n/a n/a 100% 100% 91% Clover, NH n/a n/a n/a 100% 100% 100% Casa Grande, AZ n/a n/a n/a n/a n/a 79% ----------------------------- --------------- -------------- -------------- --------------- -------------- -------------- Total 8,727,864 96% 95% 94% 96% 95% ----------------------------- --------------- -------------- -------------- --------------- -------------- --------------
(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) 09/04 06/04 03/04 12/03 09/03 06/03 03/03 12/02 09/02 96% 95% 94% 96% 95% 96% 95% 98% 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 September 30, 2004 (1) ------------------------------------------------------------------------------- # of % of Tenant Stores GLA Total GLA -------------------------------- ----------- -------------- ------------------ The Gap, Inc. 57 576,050 6.6% Phillips-Van Heusen 95 448,209 5.1% Liz Claiborne 44 366,629 4.2% VF Factory Outlet 33 285,125 3.3% Reebok International 32 245,802 2.7% Dress Barn, Inc. 30 220,119 2.5% Polo Ralph Lauren 23 184,254 2.1% Jones Retail Corporation 63 180,694 2.1% Brown Group Retail, Inc. 38 173,353 2.0% Nike 11 160,078 1.8% -------------------------------- ----------- -------------- ------------------ Total of All Listed Above 426 2,840,313 32.4% -------------------------------- ----------- -------------- ------------------ (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 September 30, 2004 Percentage of Total Gross Leasable Area (1) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014+ 3.00% 22.00% 18.00% 18.00% 14.00% 13.00% 4.00% 2.00% 3.00% 1.00% 2.00% Percentage of Total Annualized Base Rent (1) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014+ 2.00% 18.00% 20.00% 19.00% 16.00% 13.00% 5.00% 2.00% 2.00% 1.00% 2.00% (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 34 104 75 Gross leasable area 130,808 151,154 137,762 419,724 251,033 New base rent per square foot $17.09 $15.95 $18.44 $17.12 $17.47 Prior base rent per square foot $16.42 $15.91 $17.28 $16.52 $16.73 Percent increase in rent per square foot 4.1% 0.3% 6.7% 3.6% 4.4% Renewed Space: Number of leases 169 71 88 328 190 Gross leasable area 755,832 284,953 411,483 1,452,268 831,232 New base rent per square foot $14.96 $15.02 $13.07 $14.61 $13.40 Prior base rent per square foot $13.86 $14.10 $13.42 $13.78 $13.40 Percent increase in rent per square foot 7.9% 6.5% 2.1% 6.0% 0.0% Total Re-tenanted and Renewed Space: Number of leases 200 110 122 432 265 Gross leasable area 886,640 436,107 549,245 1,871,992 1,082,265 New base rent per square foot $15.27 $15.34 $14.89 $15.18 $14.34 Prior base rent per square foot $14.24 $14.73 $14.39 $14.39 $14.17 Percent increase in rent per square foot 7.2% 4.1% 3.5% 5.5% 1.2% -------------------------------------------- ------------- -------------- ------------- ------------ ----------- -------------- 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 28 94 94 Gross leasable area 84,162 148,549 90,760 323,471 308,845 Base rent per square foot $17.26 $18.12 $16.24 $17.37 $18.85 Stores Closing: Number of stores 52 19 25 96 87 Gross leasable area 170,909 58,131 107,210 336,250 286,739 Base rent per square foot $16.43 $14.91 $16.76 $16.27 $16.62 Percent increase in rent per square foot 5.1% 21.5% (3.1%) 6.7% 13.4% -------------------------------------------- ------------- -------------- ------------- ------------ ------------ -------------
(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. 9
Consolidated Balance Sheets (dollars in thousands) -------------------------------------------- -------------- --------------- -------------- -------------- --------------- 09/30/04 06/30/04 3/31/04 12/31/03 09/30/03 -------------------------------------------- -------------- --------------- -------------- -------------- --------------- Assets Rental property Land $113,869 $115,541 $118,933 $119,833 $50,474 Buildings 956,109 965,394 965,948 958,720 583,269 -------------------------------------------- -------------- --------------- -------------- -------------- --------------- Total rental property 1,069,978 1,080,935 1,084,881 1,078,553 633,743 Accumulated depreciation (215,172) (209,359) (202,454) (192,698) (191,628) -------------------------------------------- -------------- --------------- -------------- -------------- --------------- Total rental property - net 854,806 871,576 882,427 885,855 442,115 Cash 27,135 8,694 10,781 9,836 209 Deferred charges - net 60,958 64,747 67,114 68,568 9,398 Other assets 19,595 26,963 19,565 23,178 13,666 -------------------------------------------- -------------- --------------- -------------- -------------- --------------- Total assets $962,494 $971,980 $979,887 $987,437 $465,388 -------------------------------------------- -------------- --------------- -------------- -------------- --------------- Liabilities, minority interest & shareholders' equity Liabilities Debt Senior, unsecured notes $147,509 $147,509 $147,509 $147,509 $147,509 Mortgages payable 310,483 366,065 368,087 370,160 172,552 Unsecured note 53,500 -- -- -- -- Lines of credit -- -- 4,825 22,650 7,272 ------------------------------------------- -------------- --------------- -------------- -------------- ---------------- Total debt 511,492 513,574 520,421 540,319 327,333 Construction trade payables 10,361 6,300 5,816 4,345 7,188 Accounts payable & accruals 17,488 18,579 18,507 18,025 13,949 -------------------------------------------- -------------- --------------- -------------- -------------- --------------- Total liabilities 539,341 538,453 544,744 562,689 348,470 -------------------------------------------- -------------- --------------- -------------- -------------- --------------- Minority interest Consolidated joint venture 221,400 220,225 220,337 218,148 -- Operating partnership 36,533 38,731 39,524 39,182 26,202 -------------------------------------------- -------------- --------------- -------------- -------------- --------------- Total minority interests 257,933 258,956 259,861 257,330 26,202 -------------------------------------------- -------------- --------------- -------------- -------------- --------------- Shareholders' equity Common shares 137 137 135 130 105 Paid in capital 274,423 272,459 265,087 250,070 171,747 Distributions in excess of net income (105,116) (94,603) (89,916) (82,737) (81,063) Deferred compensation (4,224) (3,406) -- -- -- Accum. other comprehensive loss -- (16) (24) (45) (73) -------------------------------------------- -------------- --------------- -------------- -------------- --------------- Total shareholders' equity 165,220 174,571 175,282 167,418 90,716 -------------------------------------------- -------------- --------------- -------------- -------------- --------------- Total liabilities, minority interest & shareholders' equity $962,494 $971,980 $979,887 $987,437 $465,388 -------------------------------------------- -------------- --------------- -------------- -------------- ---------------
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Consolidated Statements of Operations (dollars and shares in thousands) --------------------------------------- ----------------------------------------------------------------- -------------------------- Three Months Ended YTD 09/04 06/04 03/04 12/03 09/03 09/04 09/03 --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Revenues Base rentals $32,879 $32,041 $31,460 $21,783 $19,124 $96,380 $56,534 Percentage rentals 1,289 958 711 1,462 774 2,958 1,717 Expense reimbursements 13,060 13,010 11,886 8,972 8,028 37,956 24,081 Other income 1,816 2,388 850 1,033 1,040 5,054 2,478 ----------------------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- Total revenues 49,044 48,397 44,907 33,250 28,966 142,348 84,810 --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Expenses Property operating 14,953 14,719 13,423 10,496 9,527 43,095 28,472 General & administrative 3,346 3,254 3,157 2,186 2,489 9,757 7,367 Depreciation & amortization 14,042 12,955 12,157 7,870 6,734 39,154 20,361 --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Total expenses 32,341 30,928 28,737 20,552 18,750 92,006 56,200 --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Operating income 16,703 17,469 16,170 12,698 10,216 50,342 28,610 Interest expense 8,919 8,901 8,864 6,779 6,427 26,684 19,707 --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Income before equity in earnings of unconsolidated joint ventures, minority interests and discontinued operations 7,784 8,568 7,306 5,919 3,789 23,658 8,903 Equity in earnings of unconsolidated joint ventures 359 274 166 180 267 799 639 Minority interests: Consolidated joint venture (7,198) (6,619) (6,593) (941) -- (20,410) -- Operating partnership (175) (408) (160) (1,114) (916) (743) (2,054) --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Income from continuing operations 770 1,815 719 4,044 3,140 3,304 7,488 Discontinued operations (1) (2,785) 1,930 293 787 380 (562) 530 ----------------------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- Net income (2,015) 3,745 1,012 4,831 3,520 2,742 8,018 Less applicable preferred share dividends -- -- -- -- -- -- (806) --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Net income available to common shareholders $ (2,015) $ 3,745 $ 1,012 $ 4,831 $ 3,520 $ 2,742 $ 7,212 --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Basic earnings per common share: --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Income from continuing operations $ .06 $.13 $.06 $.37 $.30 $.25 $.70 --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Net income $(.15) $.28 $.08 $.44 $.34 $.20 $.74 --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Diluted earnings per common share: --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Income from continuing operations $ .06 $.13 $.06 $.36 $.30 $.24 $.69 --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Net income $(.15) $.28 $.08 $.43 $.33 $.20 $.72 --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Weighted average common shares: Basic 13,612 13,504 13,337 11,008 10,404 13,485 9,729 Diluted 13,683 13,594 13,488 11,183 10,599 13,592 9,956 ------------------------------------------ ------------- ------------ ------------ ------------ ------------ ------------ ----------
(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 09/04 06/04 03/04 12/03 09/03 09/04 09/03 ----------------------------------------- ----------- ------------ ------------ ------------ ------------ ------------ ------------- Funds from operations: Net income $(2,015) $3,745 $1,012 $4,831 $3,520 $2,742 $8,018 Adjusted for - Minority interest in operating Partnership 175 408 160 1,114 916 743 2,054 Minority interest adjustment consolidated joint venture 314 (329) 33 (33) --- 18 -- Minority interest, depreciation and amortization in discontinued operations (518) 662 289 492 461 433 1,356 Depreciation and amortization uniquely significant to real estate - wholly owned 13,986 12,900 12,099 7,808 6,670 38,985 20,150 Depreciation and amortization uniquely significant to real estate - joint ventures 351 304 300 294 287 955 808 (Gain) loss on sale of real estate 3,544 (2,084) -- (588) -- 1,460 735 ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ Funds from operations $15,837 $15,606 $13,893 $13,918 $11,854 $45,336 $33,121 ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ Funds from operations per share $.95 $.94 $.84 $.98 $.87 $2.73 $2.47 ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ Funds available for distribution: Funds from operations $15,837 $15,606 $13,893 $13,918 $11,854 $45,336 $33,121 Adjusted For - Corporate depreciation excluded above 56 55 58 60 64 169 211 Amortization of finance costs 383 365 367 354 332 1,115 958 Straight line rent adjustment (81) (134) (84) 2 35 (299) 147 Below market rent adjustment (277) (310) (60) (37) -- (647) -- Market rate interest adjustment (634) (635) (610) (149) -- (1,879) -- 2nd generation tenant allowances (1,413) (1,595) (1,521) (1,457) (1,860) (4,529) (3,664) Capital improvements (1,583) (2,047) (1,335) (1,796) (241) (4,965) (2,854) ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ Funds available for distribution $12,288 $11,305 $10,708 $10,895 $10,184 $34,301 $27,919 ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ Funds available for distribution per share $.74 $.68 $.65 $.77 $.75 $2.06 $2.08 ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ Dividends paid per share $.625 $.625 $.615 $.615 $.615 $1.865 $1.8425 ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ FFO payout ratio 66% 66% 73% 63% 71% 68% 75% ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ FAD payout ratio 84% 92% 95% 80% 82% 91% 89% Diluted weighted average common shares 16,716 16,627 16,521 14,216 13,656 16,625 13,426 ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------
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Per Weighted Average Gross Leasable Area (GLA) Analysis --------------------------------------- ----------------------------------------------------------------- -------------------------- Three Months Ended YTD 09/04 06/04 03/04 12/03 09/03 09/04 09/03 --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- GLA open at end of period - (000's) Wholly owned 5,066 5,240 5,302 5,299 5,483 5,066 5,483 Partially owned consolidated (1) 3,271 3,273 3,273 3,273 --- 3,271 --- Partially owned unconsolidated (2) 391 374 324 324 318 391 318 Managed properties 432 434 434 434 457 432 457 Total GLA open at end of period 9,160 9,321 9,333 9,330 6,258 9,160 6,258 Weighted average GLA (000's) (3) 8,338 8,339 8,339 5,526 5,051 8,338 5,034 End of period occupancy (1) (2) 96% 95% 94% 96% 95% 96% 95% PER SQUARE FOOT =============== Revenues Base rentals $3.95 $3.84 $3.77 $3.94 $3.79 $11.56 $11.23 Percentage rentals .15 .11 .09 .27 .15 .35 .34 Expense reimbursements 1.56 1.56 1.43 1.62 1.59 4.55 4.78 Other income .22 .29 .10 .19 .20 .61 .49 --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Total revenues 5.88 5.80 5.39 6.02 5.73 17.07 16.84 --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Expenses Property operating 1.79 1.77 1.61 1.90 1.89 5.17 5.66 General & administrative .40 .39 .38 .40 .49 1.17 1.46 Depreciation & amortization 1.69 1.55 1.46 1.42 1.33 4.70 4.04 --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Total expenses 3.88 3.71 3.45 3.72 3.71 11.04 11.16 --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Operating income 2.00 2.09 1.94 2.30 2.02 6.03 5.68 --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Interest expense 1.07 1.07 1.06 1.23 1.27 3.20 3.91 --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Income before equity in earnings of unconsolidated joint ventures, minority interest and discontinued operations $.93 $1.02 $.88 $1.07 $.75 $2.83 $1.77 --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ ------------- Total revenues less property operating and general & administrative expenses ("NOI") $3.69 $3.64 $3.40 $3.72 $3.36 $10.73 $9.73 --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -------------
(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 9/30/04 6/30/04 3/31/04 12/31/03 09/30/03 09/30/04 (1) ---------------------------------------------- -------------- ------------ ------------ ------------ ------------ ----------------- Assets Investment properties at cost - net $68,615 $69,955 $67,051 $63,899 $35,200 $29,845 Cash and cash equivalents 2,184 1,381 2,078 4,145 1,377 921 Deferred charges - net 2,076 1,535 1,596 1,652 1,767 936 Other assets 3,168 3,879 3,334 3,277 2,900 1,354 ---------------------------------------------- -------------- ------------ ------------ ------------ ------------ ----------------- Total assets $76,043 $76,750 $74,059 $72,973 $41,244 $33,056 ---------------------------------------------- -------------- ------------ ------------ ------------ ------------ ----------------- Liabilities & Owners' Equity Mortgage payable $59,233 $57,156 $54,811 $54,683 $29,248 $25,418 Construction trade payables 1,328 3,090 2,501 1,164 751 664 Accounts payable & other liabilities 730 508 603 564 743 344 ---------------------------------------------- -------------- ------------ ------------ ------------ ------------ ----------------- Total liabilities 61,291 60,754 57,915 56,411 30,742 26,426 Owners' equity 14,752 15,996 16,144 16,562 10,502 6,630 ---------------------------------------------- -------------- ------------ ------------ ------------ ------------ ----------------- Total liabilities & owners' equity $76,043 $76,750 $74,059 $72,973 $41,244 $33,056 ---------------------------------------------- -------------- ------------ ------------ ------------ ------------ -----------------
(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 09/04 06/04 03/04 12/03 09/03 09/04 09/03 ----------------------------------------- ----------- ------------ ------------ ------------ ------------- ------------ ------------ Revenues $2,682 $2,507 $2,075 $2,098 $2,195 $7,264 $6,080 ----------------------------------------- ----------- ------------ ------------ ------------ ------------- ------------ ------------ Expenses Property operating 918 946 775 760 725 2,639 2,211 General & administrative 8 12 1 26 1 21 20 Depreciation & amortization 723 631 623 613 599 1,977 1,679 ----------------------------------------- ----------- ------------ ------------ ------------ ------------- ------------ ------------ Total expenses 1,649 1,589 1,399 1,399 1,325 4,637 3,911 ----------------------------------------- ----------- ------------ ------------ ------------ ------------- ------------ ------------ Operating income 1,033 918 676 699 870 2,627 2,169 Interest expense 346 405 380 380 372 1,131 991 ----------------------------------------- ----------- ------------ ------------ ------------ ------------- ------------ ------------ Net income $687 $513 $296 $319 $498 $1,496 $1,178 ----------------------------------------- ----------- ------------ ------------ ------------ ------------- ------------ ------------ Tanger's share of: ----------------------------------------- ----------- ------------ ------------ ------------ ------------- ------------ ------------ Total revenues less property operating and general & administrative expenses ("NOI") $878 $774 $650 $656 $735 $2,302 $1,925 Net income $360 $274 $165 $180 $267 $799 $639 Depreciation (real estate related) $351 $304 $300 $293 $287 $955 $808 ----------------------------------------- ----------- ------------ ------------ ------------ ------------- ------------ ------------
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Debt Outstanding Summary (dollars in thousands) As of September 30, 2004 ------------------------------------------------------------------------------------------------------------ Principal Interest Maturity Balance Rate Date --------------------------------------------- -------------- ------------------------------ ---------------- Mortgage debt Lancaster, PA $13,903 9.770% 04/10/05 Commerce I, GA 7,426 9.125% 09/10/05 Kittery I, ME 60,739 7.875% 04/01/09 San Marcos I, TX West Branch, MI Williamsburg, IA San Marcos II, TX 18,513 7.980% 04/01/09 Blowing Rock, NC 9,405 8.860% 09/01/10 Nags Head, NC 6,382 8.860% 09/01/10 Consolidated JV Debt 184,139 6.590% 07/10/08 Premium on Consolidated JV Debt (1) 9,976 ------------------------------------------- -------------- ------------------------------ ---------------- Total mortgage debt 310,483 ------------------------------------------- -------------- ------------------------------ ---------------- Corporate debt 1997 Senior unsecured notes 47,509 7.875% 10/24/04 Unsecured term loan 53,500 Libor + 1.60% 03/26/06 Unsecured credit facilities --- Libor + 1.60% 06/30/07 2001 Senior unsecured notes 100,000 9.125% 02/15/08 ------------------------------------------- -------------- ------------------------------ ---------------- Total corporate debt 201,009 ------------------------------------------- -------------- ------------------------------ ---------------- Total debt $511,492 ------------------------------------------- -------------- ------------------------------ ----------------
(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 September 30, 2004 ------------------------------------------------------------------------------------------------------- Scheduled Total Amortization Balloon Scheduled Year Payments Payments Payments ----------------------------- ---------------------- ----------------------- -------------------------- 2004 $1,511 $47,509 $49,020 2005 5,842 20,576 26,418 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 -- -- -- ----------------------------- ---------------------- ----------------------- -------------------------- $25,228 $476,288 $501,516 Premium on Consolidated JV Debt (1) 9,976 ---------------------------------------------------- ----------------------- -------------------------- $511,492 ----------------------------- ---------------------- ----------------------- --------------------------
(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 6825 Fax: (336) 297-0931 e-mail: tangermail@tangeroutlet.com Mail: Tanger Factory Outlet Centers, Inc. 3200 Northline Avenue Suite 360 Greensboro, NC 27408 17