-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LnBtojon0lG8omKfdsSVozKdJN5Dt8mR3jlqiCBbj51iBQOGvtBXC/JPM5kkKO36 360EXF/cbe5ud7EtX2iZxA== 0000899715-07-000072.txt : 20070430 0000899715-07-000072.hdr.sgml : 20070430 20070430163157 ACCESSION NUMBER: 0000899715-07-000072 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20070331 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070430 DATE AS OF CHANGE: 20070430 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TANGER FACTORY OUTLET CENTERS INC CENTRAL INDEX KEY: 0000899715 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 561815473 STATE OF INCORPORATION: NC FISCAL YEAR END: 0105 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11986 FILM NUMBER: 07800925 BUSINESS ADDRESS: STREET 1: 3200 NORTHLINE AVENUE SUITE 360 CITY: GREENSBORO STATE: NC ZIP: 27408 BUSINESS PHONE: 3362923010 MAIL ADDRESS: STREET 1: 3200 NORTHLINE AVENUE SUITE 360 CITY: GREENSBORO STATE: NC ZIP: 27408 8-K 1 tfoc8k03312007.htm TFOC 8-K TFOC 8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

___________

FORM 8-K

Current Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934


Date of Report (date of earliest event reported): April 30, 2007


TANGER FACTORY OUTLET CENTERS, INC.
 
_________________________________________
(Exact name of registrant as specified in its charter)


                           
   North Carolina   
(State or other jurisdiction of Incorporation)
 
                    1-11986  
(Commission File Number)
 
         56-1815473         
(I.R.S. Employer Identification Number)


             3200 Northline Avenue, Greensboro, North Carolina 27408             
(Address of principal executive offices) (Zip Code)
 
                           (336) 292-3010                                
(Registrants’ telephone number, including area code)
 
                           N/A                                
(former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 Soliciting material pursuant to Rule 14a-12 under the Exchange

 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


 
 
 


 
Item 2.02 Results of Operations and Financial Condition
 
On April 30, 2007, Tanger Factory Outlet Centers, Inc. (the “Company”) issued a press release announcing its results of operations and financial condition as of and for the quarter ended March 31, 2007. A copy of the Company’s press release is furnished as Exhibit 99.1 to this report on Form 8-K. The information contained in this report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specified otherwise.
 
Item 7.01 Regulation FD Disclosure 
 
On April 30, 2007, the Company made publicly available certain supplemental operating and financial information for the quarter ended March 31, 2007. This supplemental operating and financial information is attached to this current report as exhibit 99.2. The information contained in this report on Form 8-K, including Exhibit 99.2, shall not be deemed “filed” with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specified otherwise.
 
Item 9.01 Financial Statements and Exhibits
 
(c) Exhibits

The following exhibits are included with this Report:

Exhibit 99.1 Press release announcing the results of operations and financial condition of the Company as of and for the quarter ended March 31, 2007.

Exhibit 99.2  Supplemental operating and financial information of the Company as of and for the quarter ended March 31, 2007.


SIGNATURES

 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 

Dated: April 30, 2007

TANGER FACTORY OUTLET CENTERS, INC.

By: /s/ Frank C. Marchisello, Jr. 
Frank C. Marchisello, Jr.
Executive Vice President, Chief Financial Officer

 
 
 


_____________________________________________________________________________________________    

EXHIBIT INDEX

  
Exhibit No.
 
 

99.1    
Press release announcing the results of operations and financial condition of the Company as of and for the quarter ended March 31, 2007.
 
99.2     Supplemental operating and financial information of the Company as of and for the quarter ended March 31, 2007. 
 

 


 EX-99.1 2 tfoc8k03312007ex99-1.htm EXHIBIT 99.1 Exhibit 99.1
Tanger Factory Outlet Centers, Inc.

News Release     
 
For Release: IMMEDIATE RELEASE   
Contact: Frank C. Marchisello, Jr.   
(336) 834-6834

TANGER REPORTS FIRST QUARTER 2007 RESULTS
12.8% Increase in Total FFO, 11.8% Increase in FFO Per Share

Greensboro, NC, April 30, 2007, Tanger Factory Outlet Centers, Inc. (NYSE:SKT) today reported funds from operations (“FFO”) available to common shareholders, a widely accepted supplemental measure of REIT performance, for the three months ended March 31, 2007 was $21.3 million, or $0.57 per share, as compared to FFO of $18.9 million, or $0.51 per share, for the three months ended March 31, 2006, representing a 12.8% increase in total FFO and an 11.8% per share increase. During the first quarter of the previous year, Tanger recognized a net gain on the sale of real estate of $13.8 million associated with the sale of the company’s outlet centers located in Pigeon Forge, Tennessee and North Branch, Minnesota. As a result, the company reported net income available to common shareholders of $13.6 million, or $0.44 per share, for the first quarter of last year, as compared to net income of $1.9 million, or $0.06 per share for the first quarter of 2007.

Net income and FFO per share amounts above are on a diluted basis. FFO is a supplemental non-GAAP financial measure used as a standard in the real estate industry to measure and compare the operating performance of real estate companies. A complete reconciliation containing adjustments from GAAP net income to FFO is included in this release.
First Quarter Highlights
 
·  
Increased the quarterly common share dividend 5.9% from $0.34 to $0.36 per share, $1.44 per share annualized, representing the 14th consecutive year of increased dividends
 
·  
245 leases signed, totaling 1,055,144 square feet with respect to re-tenanting and renewal activity, including 47.2% of the square footage scheduled to expire during 2007
 
·  
13.3% increase in straight-line average base rental rates on leases renewed during the quarter, compared to 11.7% last year
 
·  
37.4% increase in straight-line average base rental rates on released space during the quarter, compared to 21.2% last year
 
·  
95.1% period-end wholly-owned portfolio occupancy rate, compared to 95.0% last year
 
·  
6.3% increase in reported tenant comparable sales for the three months ended March 31, 2007
 
·  
$344 per square foot in reported tenant comparable sales for the rolling twelve months ended March 31, 2007 up 4.7% compared to the twelve months ended March 31, 2006
 
·  
30.0% debt-to-total market capitalization ratio, 3.18 times interest coverage ratio compared to 2.93 times last year

Stanley K. Tanger, Chairman of the Board and Chief Executive Officer, commented, “During the first quarter, we began to see the accretion generated by our new centers in Charleston, South Carolina and Wisconsin Dells, Wisconsin, both of which opened in August of last year. Our financial results also reflect the 3.0% increase in same center net operating income generated throughout our portfolio during the first quarter.”


Portfolio Operating Results

During the first quarter of 2007, Tanger executed 245 leases, totaling 1,055,144 square feet throughout its wholly-owned portfolio. Lease renewals during the first quarter accounted for 733,856 square feet, generated a 13.3% increase in straight-line average base rental rates and represented 47.2% of the approximately 1,550,000 square feet originally scheduled to expire during 2007. Straight-line average base rental increases on re-tenanted space during the first quarter averaged 37.4% and accounted for the remaining 321,288 square feet.

Same center net operating income increased 3.0% for the first quarter of 2007 compared to 4.2% for the first quarter of 2006. During the first quarter of 2007, the company recaptured approximately 134,000 square feet of space throughout its wholly-owned portfolio, thus tempering same center results for the period. This space, which was comprised of 44 different stores operated by three low volume tenants, is in the process of being released. The company is releasing the majority of this space to higher volume brand name tenants and believes the rental rates achieved on the releasing of this space will be well above the rates which were being paid by the previous tenants.

Reported tenant comparable sales for the first quarter of 2007 increased by 6.3%, as compared to the same period in 2006, while reported tenant comparable sales for the rolling twelve months ended March 31, 2007 increased 4.7% to $344 per square foot.
Investment Activities

Tanger continues the pre-development and leasing of two previously announced sites located near Pittsburgh, Pennsylvania and in Deer Park (Long Island), New York. The company has closed on the acquisition of the Pittsburgh development site land and site work is ongoing at this time. Tenant interest in the Pittsburgh project remains strong, with leases for approximately 78% of the 308,000 square foot first phase either signed or out for signature. The company currently expects delivery of the initial phase in the first quarter of 2008. The Pittsburgh center will be wholly owned by Tanger.

Demolition of the buildings located at the Deer Park site began during the third quarter of 2006. The company currently expects this center will contain over 800,000 square feet upon final build-out. Site work has begun on a 688,000 square foot initial phase and the company has approximately 52% of the space either signed or out for signature. Tanger currently expects the project will be delivered in the first quarter of 2008. The Deer Park property is owned through a joint venture of which Tanger and two venture partners each own a one-third interest.

Tanger has signed an option on one potential new development site located in Mebane, North Carolina on the highly traveled Interstate 40/85 corridor, which sees over 83,000 cars daily. The site is located at Exit 154, halfway between the Research Triangle Park area of Raleigh, Durham, and Chapel Hill, North Carolina and the Triad area of Greensboro, High Point and Winston-Salem, North Carolina. Initial reaction on the site from the company’s magnet tenants has been very positive. The company is also in the process of negotiating options on two additional sites. The official announcement of each site will be done upon the execution of a definitive option agreement, or in May of this year in conjunction with the ICSC convention to be held in Las Vegas.

Financing Activities and Balance Sheet Summary

On April 12, 2007, Tanger announced that its Board of Directors approved a 5.9% increase in the annual dividend on its common shares from $1.36 per share to $1.44 per share. Simultaneously, the Board of Directors declared a quarterly dividend of $0.36 per share for the first quarter ended March 31, 2007. A cash dividend of $0.36 per share will be payable on May 15, 2007 to holders of record on April 30, 2007. Tanger has increased its dividend each year since becoming a public company in May of 1993.

As of March 31, 2007, Tanger had a total market capitalization of approximately $2.3 billion, an increase of 13.1%, or $262 million since a year ago. The company had $677.0 million of debt outstanding, equating to a 30.0% debt-to-total market capitalization ratio. As of March 31, 2007, all of Tanger’s debt was at fixed interest rates and the company did not have any amounts outstanding on its $200.0 million in available unsecured lines of credit. During the first quarter of 2007, Tanger continued to maintain a strong interest coverage ratio of 3.18 times, compared to 2.93 times during the first quarter of last year.
 
2007 FFO Per Share Guidance

Based on current market conditions and the strength and stability of its core portfolio, the company currently believes its net income for 2007, excluding gains or losses on the sale of real estate, will be between $0.77 and $0.85 per share and its FFO for 2007 will be between $2.40 and $2.48 per share. The company’s earnings estimates do not include the impact of any potential gains on the sale of land parcels or the impact of any potential sales or acquisitions of properties. The following table provides the reconciliation of estimated diluted FFO per share to estimated diluted net income available to common shareholders per share:

For the twelve months ended December 31, 2007:
 
 
Low Range
 
High Range
Estimated diluted net income per share, excluding
gain/loss on the sale of real estate
 
$ 0.77
 
$ 0.85
Minority interest, depreciation and amortization uniquely
significant to real estate including minority interest
share and our share of joint ventures
1.63
1.63
Estimated diluted FFO per share     
$ 2.40 
$ 2.48
 

First Quarter Conference Call

Tanger will host a conference call to discuss its first quarter results for analysts, investors and other interested parties on Tuesday, May 1, 2007, at 10:00 A.M. eastern time. To access the conference call, listeners should dial 1-877-277-5113 and request to be connected to the Tanger Factory Outlet Centers First Quarter Financial Results call. Alternatively, the call will be web cast by CCBN and can be accessed at Tanger Factory Outlet Centers, Inc.'s web site at www.tangeroutlet.com/corporate under the News Releases section.

A telephone replay of the call will be available from May 1, 2007 starting at 12:00 P.M. Eastern Time through May 15, 2007, by dialing 1-800-642-1687 (conference ID # 4822938). Additionally, an online archive of the broadcast will also be available through May 15, 2007.

About Tanger Factory Outlet Centers

Tanger Factory Outlet Centers, Inc.(NYSE:SKT), a fully integrated, self-administered and self-managed publicly traded REIT, presently owns 30 outlet centers in 21 states coast to coast, totaling approximately 8.4 million square feet of gross leasable area. Tanger also manages for a fee and owns a 50% interest in two outlet centers containing approximately 667,000 square feet and manages for a fee two outlet centers totaling approximately 229,000 square feet. Tanger is filing a Form 8-K with the Securities and Exchange Commission that includes a supplemental information package for the quarter ended March 31, 2007. For more information on Tanger Outlet Centers, visit our web site at www.tangeroutlet.com.

Estimates of future net income per share and FFO per share are by definition, and certain other matters discussed in this press release regarding our re-merchandising strategy, the renewal and re-tenanting of space, tenant sales and sales trends, interest rates, funds 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 may be, forward-looking statements within the meaning of the federal securities laws. 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, the company’s ability to lease its properties, the company’s 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, 2006.


TANGER FACTORY OUTLET CENTERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)

 
 
Three Months Ended
 
 
 
March 31,
 
 
 
2007
 
 
2006
 
 
 
 (unaudited
) 
 
(unaudited
) 
Revenues
                
 
Base rentals (a)
 
$
35,227
    
$
32,965
  
 
Percentage rentals
 
  
1,468
      
1,158
  
 
Expense reimbursements
 
  
15,045
      
12,720
  
 
Other income (b)
 
  
1,501
      
1,355
  
 
 
 
Total revenues
 
  
53,241
      
48,198
  
Expenses
 
              
 
Property operating
 
  
17,005
      
14,765
  
 
General and administrative
 
  
4,277
      
4,081
  
 
Depreciation and amortization
 
  
18,487
      
15,950
  
 
 
 
Total expenses
 
  
39,769
      
34,796
  
Operating income
 
  
13,472
      
13,402
  
 
Interest expense
 
  
10,056
      
10,034
  
Income before equity in earnings of unconsolidated
 
              
 
joint ventures, minority interest and discontinued operations
 
  
3,416
      
3,368
  
Equity in earnings of unconsolidated joint ventures (c)
    
235
      
147
  
Minority interest in operating partnership
    
(370
)
    
(381
)
Income from continuing operations
 
  
3,281
      
3,134
  
Discontinued operations, net of minority interest (d)
 
  
---
      
11,713
  
Net income
   
3,281
      
14,847
  
Preferred share dividends
 
  
(1,406
)
    
(1,215
)
Net income available to common shareholders
  
$
1,875
    
$
13,632
  
                   
Basic earnings per common share:
                
 
Income from continuing operations
  
$
.06
    
$
.06
  
 
Net income
   
.06
      
.45
  
 
            
Diluted earnings per common share:
                
 
Income from continuing operations
  
$
.06
    
$
.06
  
 
Net income
   
.06
      
.44
  
                 
Summary of discontinued operations (d)
                
Operating income from discontinued operations
  
$
---
    
$
208
  
Gain on sale of real estate
    
---
      
13,833
  
Income from discontinued operations
    
---
      
14,041
  
Minority interest in discontinued operations
    
---
      
(2,328
)
Discontinued operations, net of minority interest
  
$
---
    
$
11,713
  
(a)  
Includes straight-line rent and market rent adjustments of $1,079 and $914 for the three months ended March 31, 2007 and 2006, respectively.
(b)  
Includes gains on sale of outparcels of land of $110 for the three months ended March 31, 2006.
(c)  
Includes Myrtle Beach, South Carolina Hwy 17 and Wisconsin Dells, Wisconsin properties which are operated by us through 50% ownership joint ventures.
(d)  
In accordance with SFAS No. 144 “Accounting for the Impairment or Disposal of Long Lived Assets”, the results of operations for properties disposed of during the quarter are classified as held for sale as of the end of the quarter in which we have no significant continuing involvement have been reported above as discontinued operations for the periods presented.




TANGER FACTORY OUTLET CENTERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31,
 
 
December 31,
 
 
 
2007
 
 
2006
 
 
 
(unaudited)
  
 
(unaudited)
  
ASSETS:
 
 
 
 
 
 
 
 
 
Rental property
                
 
Land
  
$
130,137
    
$
130,137
  
 
Building, improvement and fixtures
    
1,071,691
      
1,068,070
  
 
Construction in progress
    
23,944
      
18,640
  
     
1,225,772
      
1,216,847
  
 
Accumulated depreciation
    
(287,720
)
    
(275,372
)
 
Rental property, net
    
938,052
      
941,475
  
 
Cash and cash equivalents
    
3,273
      
8,453
  
 
Investments in unconsolidated joint ventures
    
14,052
      
14,451
  
 
Deferred charges, net
    
52,312
      
55,089
  
 
Other assets
    
21,149
      
21,409
  
 
Total assets
  
$
1,028,838
    
$
1,040,877
  
 
 
 
 
 
 
 
LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS’ EQUITY
 Liabilities
 
 
 
 
 
 
 
 
 
  
Debt
 
              
 
Senior, unsecured notes (net of discount of $815 and $832, respectively)
$
498,685
    
$
498,668
  
 
Mortgages payable (including a debt premium
 
              
 
  
of $2,857 and $3,441, respectively)
 
  
178,363
      
179,911
  
   
Total debt
    
677,048
      
678,579
  
 
Construction trade payables
    
22,266
      
23,504
  
 
Accounts payable and accrued expenses
    
25,680
      
25,094
  
 
 
 
Total liabilities
 
  
724,994
      
727,177
  
 
 
          
Commitments
 
              
Minority interest in operating partnership
 
  
37,193
      
39,024
  
 
 
          
Shareholders’ equity
 
              
 
Preferred shares, 7.5% Class C, liquidation preference $25 per share,
 
              
   
8,000,000 shares authorized, 3,000,000 shares issued and
                
   
outstanding at March 31, 2007 and December 31, 2006, respectively
    
75,000
      
75,000
  
 
Common shares, $.01 par value, 50,000,000 shares authorized,
 
              
   
31,260,161 and 31,041,336 shares issued and outstanding at
               
   
March 31, 2007 and December 31, 2006, respectively
    
313
      
310
  
 
Paid in capital
 
  
347,933
      
346,361
  
 
Distributions in excess of net income 
 
  
(158,902
)
    
(150,223
)
 
Accumulated other comprehensive income
 
  
2,307
      
3,228
  
 
 
 
Total shareholders’ equity
 
  
266,651
      
274,676
  
 
 
 
  
Total liabilities, minority interest, and shareholders’ equity
  
$
1,028,838
    
$
1,040,877
  
 
 
 
 
 
 
 




TANGER FACTORY OUTLET CENTERS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(in thousands, except per share, state and center information)
 


 
 
  
Three Months Ended
 
 
 
  
March 31,
 
 
 
2007
 
 
2006
 
 
 
 
 
 
 
 
FUNDS FROM OPERATIONS (a)
                
 
Net income
 
$
3,281
    
$
14,847
  
 
Adjusted for:
 
              
 
  
Minority interest in operating partnership
 
  
370
      
381
  
 
  
Minority interest, depreciation and amortization
 
              
 
    
attributable to discontinued operations
 
  
---
      
2,444             
   
Depreciation and amortization uniquely significant to
                
     
real estate - wholly-owned
    
18,412      
   
15,885             
   
Depreciation and amortization uniquely significant to
                
     
real estate - unconsolidated joint ventures
    
 654       
    
379             
 
  
Gain on sale of real estate
 
  
---
      
(13,833
)
 
Funds from operations (FFO)
 
  
22,717
      
20,103
  
 
Preferred share dividends
 
  
(1,406
)
    
(1,215
)
 
Funds from operations available to common shareholders
 
 $
21,311
    
$
18,888
  
 
Funds from operations available to common shareholders
 
              
 
 
per share - diluted
 
$
.57
    
$
.51
  
 
 
          
 WEIGHTED AVERAGE SHARES
 
          
 
Basic weighted average common shares
 
  
30,743
      
30,531
  
 
Effect of exchangeable notes
    
421
      
---
  
 
Effect of outstanding share and unit options
 
  
248
      
246
  
 
Effect of unvested restricted share awards
 
  
137       
   
84              
 
Diluted weighted average common shares
 
              
 
  
(for earnings per share computations)
 
  
31,549
      
30,861
  
 
Convertible operating partnership units (b)
 
  
6,067
      
6,067
  
 
Diluted weighted average common shares
 
              
 
  
(for funds from operations per share computations)
    
37,616
      
36,928
  
 
                
OTHER INFORMATION
                
Gross leasable area open at end of period - 
 
          
 
Wholly owned
 
  
8,372
      
8,030
  
 
Partially owned - unconsolidated
 
667                     
 
402             
 
Managed
    
229
      
293
  
                   
Outlet centers in operation -
                
 
Wholly owned
    
30
      
29
  
 
Partially owned - unconsolidated
   
2
      
1
  
 
Managed
 
  
2
      
3
  
                 
States operated in at end of period (c)
 
  
21
      
21
  
Occupancy at end of period (c) (d)
    
95.1
%
    
95.0
%



(a)  
FFO is a non-GAAP financial measure. The most directly comparable GAAP measure is net income (loss), to which it is reconciled. We believe that for a clear understanding of our operating results, FFO should be considered along with net income as presented elsewhere in this report. FFO is presented because it is a widely accepted financial indicator used by certain investors and analysts to analyze and compare one equity REIT with another on the basis of operating performance. FFO is generally defined as net income (loss), computed in accordance with generally accepted accounting principles, before extraordinary items and gains (losses) on sale or disposal of depreciable operating properties, plus depreciation and amortization uniquely significant to real estate and after adjustments for unconsolidated partnerships and joint ventures. We caution that the calculation of FFO may vary from entity to entity and as such the presentation of FFO by us may not be comparable to other similarly titled measures of other reporting companies. FFO does not represent net income or cash flow from operations as defined by accounting principles generally accepted in the United States of America and should not be considered an alternative to net income as an indication of operating performance or to cash flows from operations as a measure of liquidity. FFO is not necessarily indicative of cash flows available to fund dividends to shareholders and other cash needs.

(b)  
The convertible operating partnership units (minority interest in operating partnership) are not dilutive on earnings per share computed in accordance with generally accepted accounting principles.

(c)  
Excludes Myrtle Beach, South Carolina Hwy 17 and Wisconsin Dells, Wisconsin properties which are operated by us through 50% ownership joint ventures and two centers for which we only have management responsibilities.

(d)  
Excludes our wholly-owned, non-stabilized center in Charleston, South Carolina
EX-99.2 3 tfoc8k03312007ex99-2.htm EXHIBIT 99.2

 
Tanger Factory Outlet Centers, Inc.


Supplemental Operating and Financial Data

March 31, 2007







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, 2006.

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 - Occupancy at End of Each Period Shown (1)
      
5
 
Portfolio Occupancy at the End of Each Period (1)
      
6
 
Major Tenants (1)
      
7
 
Lease Expirations as of March 31, 2007
      
8
 
Leasing Activity (1)
      
9


Financial Data:

 
Consolidated Balance Sheets
      
10
 
Consolidated Statements of Operations
      
11
 
FFO and FAD Analysis
      
12
 
Unconsolidated Joint Venture Information
      
13
 
Debt Outstanding Summary
      
17
 
Senior Unsecured Notes Financial Covenants
     
17
 
Future Scheduled Principal Payments
      
18
         
Investor Information
     
19
 



3

Geographic Diversification


As of March 31, 2007
 
State
 
# of Centers
 
GLA
 
% of GLA
South Carolina
3
1,171,771
14%
Georgia
3
826,643
10%
New York
1
729,315
9%
Texas
2
620,000
8%
Alabama
2
619,918
7%
Delaware
1
568,926
7%
Michigan
2
436,751
5%
Tennessee
1
419,038
5%
Utah
1
300,602
4%
Connecticut
1
291,051
4%
Missouri
1
277,883
3%
Iowa
1
277,230
3%
Oregon
1
270,280
3%
Illinois
1
256,514
3%
Pennsylvania
1
255,152
3%
Louisiana
1
243,499
3%
New Hampshire
1
227,849
3%
Florida
1
198,950
2%
North Carolina
2
186,458
2%
California
1
109,600
1%
Maine
2
84,313
1%
Total (1)
30
8,371,743
100%

 

(1)  
Excludes one 401,992 square foot center in Myrtle Beach, SC and one 264,929 square foot center in Wisconsin Dells, WI, of which Tanger owns 50% interest in through joint venture arrangements and two centers totaling 229,174 square feet for which we only have management responsibilities.
 
4
Property Summary - Occupancy at End of Each Period Shown (1)

 
 
Location
 
Total GLA
3/31/07
 
% Occupied
3/31/07
 
% Occupied
12/31/06
 
% Occupied
9/30/06
 
% Occupied
6/30/06
 
% Occupied
3/31/06
Riverhead, NY
729,315
97%
100%
98%
99%
98%
Rehoboth, DE
568,926
98%
99%
100%
99%
98%
Foley, AL
540,343
96%
98%
96%
96%
94%
San Marcos, TX
442,510
98%
99%
98%
99%
97%
Myrtle Beach, SC
426,417
94%
95%
94%
94%
91%
Sevierville, TN
419,038
98%
100%
100%
100%
100%
Hilton Head, SC
393,094
85%
88%
88%
84%
81%
Charleston, SC
352,260
90%
89%
81%
n/a
n/a
Commerce II, GA
347,025
94%
99%
96%
99%
98%
Howell, MI
324,631
99%
100%
99%
100%
95%
Park City, UT
300,602
99%
100%
99%
100%
100%
Locust Grove, GA
293,868
94%
99%
93%
94%
95%
Westbrook, CT
291,051
93%
99%
96%
92%
90%
Branson, MO
277,883
98%
100%
99%
100%
99%
Williamsburg, IA
277,230
95%
99%
98%
97%
99%
Lincoln City, OR
270,280
99%
97%
96%
98%
99%
Tuscola, IL
256,514
69%
77%
70%
70%
70%
Lancaster, PA
255,152
99%
100%
100%
100%
99%
Gonzales, LA
243,499
98%
100%
100%
100%
100%
Tilton, NH
227,849
96%
100%
94%
99%
97%
Fort Myers, FL
198,950
97%
100%
100%
94%
91%
Commerce I, GA
185,750
90%
90%
87%
93%
87%
Terrell, TX
177,490
98%
99%
91%
99%
99%
West Branch, MI
112,120
87%
96%
100%
98%
98%
Barstow, CA
109,600
100%
100%
100%
95%
95%
Blowing Rock, NC
104,280
97%
100%
100%
100%
100%
Nags Head, NC
82,178
100%
100%
100%
100%
97%
Boaz, AL
79,575
92%
98%
98%
92%
92%
Kittery I, ME
59,694
100%
100%
100%
100%
100%
Kittery II, ME
24,619
94%
94%
94%
100%
100%
Total 
8,371,743
95% (2)
98% (2)
96% (2)
96%
95%

 

(1)  
Excludes one 401,992 square foot center in Myrtle Beach, SC and one 264,929 square foot center in Wisconsin Dells, WI, of which Tanger owns 50% interest in through joint venture arrangements and two centers totaling 229,174 square feet for which we only have management responsibilities.
(2)  
Excludes the occupancy rate at our Charleston, South Carolina center which opened during the third quarter of 2006 and has not yet stabilized.

5

Portfolio Occupancy at the End of Each Period (1)


 
03/07 (2)    12/06 (2)    09/06 (2)    06/06    03/06    12/05    09/05    06/05     03/05
 95%       98%       96%    96%      95%      97%      96%     97%   95%
 


 



(1)  
Excludes one 401,992 square foot center in Myrtle Beach, SC and one 264,929 square foot center in Wisconsin Dells, WI, of which Tanger owns 50% interest in through joint venture arrangements and two centers totaling 229,174 square feet for which we only have management responsibilities.
 
(2)  
Excludes the occupancy rate at our Charleston, South Carolina center which opened during the third quarter of 2006 and has not yet stabilized.
 
 
6
Major Tenants (1)


Ten Largest Tenants As of March 31, 2007
 
Tenant
# of   
Stores
 
GLA 
% of     
Total GLA
The Gap, Inc.
60
595,187
7.1%
Phillips-Van Heusen
94
448,564
5.4%
Liz Claiborne
40
310,478
3.7%
Adidas
34
274,371
3.3%
VF Factory Outlet
29
266,819
3.2%
Dress Barn, Inc.
34
230,998
2.8%
Carter’s
43
213,191
2.5%
Nike
16
210,098
2.5%
Jones Retail Corporation
68
190,478
2.3%
Polo Ralph Lauren
23
188,628
2.2%
Total of All Listed Above
441
2,928,812
35.0%


 

(1)  
Excludes one 401,992 square foot center in Myrtle Beach, SC and one 264,929 square foot center in Wisconsin Dells, WI, of which Tanger owns 50% interest in through joint venture arrangements and two centers totaling 229,174 square feet for which we only have management responsibilities.

7
Lease Expirations as of March 31, 2007

 

Percentage of Total Gross Leasable Area (1)

  2007     2008        2009     2010     2011     2012    2013     2014      2015    2016    2017+
10.00%    17.00%    19.00%    17.00%    19.00%    9.00%     2.00%       1.00%    2.00%    2.00%    2.00%



Percentage of Total Annualized Base Rent (1)

  2007     2008        2009     2010     2011     2012    2013     2014      2015    2016    2017+
 8.00%     16.00%    17.00%    21.00%   19.00%    9.00%       2.00%      2.00%    2.00%     2.00%   2.00%



 
(1)
Excludes one 401,992 square foot center in Myrtle Beach, SC and one 264,929 square foot center in Wisconsin Dells, WI, of which Tanger owns 50% interest in through joint venture arrangements and two centers totaling 229,174 square feet for which we only have management responsibilities.
 
8
 
Leasing Activity (1)
 
 
 
03/31/07
 
 
06/30/07
 
 
09/30/07
 
 
12/31/07
 
 
Year to Date
 
Prior
Year to Date
Re-tenanted Space:
            
Number of leases
89
      
89
60
Gross leasable area
321,288
      
321,288
220,484
New initial base rent per square foot
$21.54
      
$21.54
$17.98
Prior expiring base rent per square foot
$16.57
      
$16.57
$15.48
Percent increase
30.0%
      
30.0%
16.1%
             
New straight line base rent per square foot
$22.51
      
$22.51
$18.61
Prior straight line base rent per square foot
$16.39
      
$16.39
$15.35
Percent increase
37.4%
      
37.4%
21.2%
             
Renewed Space:
            
Number of leases
156
      
156
220
Gross leasable area
733,856
      
733,856
942,601
New initial base rent per square foot
$18.32
      
$18.32
$17.71
Prior expiring base rent per square foot
$16.73
      
$16.73
$16.37
Percent increase
9.5%
      
9.5%
8.2%
             
New straight line base rent per square foot
$18.71
      
$18.71
$17.91
Prior straight line base rent per square foot
$16.52
      
$16.52
$16.03
Percent increase
13.3%
      
13.3%
11.7%
             
Total Re-tenanted and Renewed Space:
            
Number of leases
245
      
245
280
Gross leasable area
1,055,144
      
1,055,144
1,163,085
New initial base rent per square foot
$19.30
      
$19.30
$17.76
Prior expiring base rent per square foot
$16.68
      
$16.68
$16.20
Percent increase
15.7%
      
15.7%
9.6%
             
New straight line base rent per square foot
$19.86
      
$19.86
$18.05
Prior straight line base rent per square foot
$16.48
      
$16.48
$15.90
Percent increase
20.6%
      
20.6%
13.5%
 
 
(1)
Excludes one 401,992 square foot center in Myrtle Beach, SC and one 264,929 square foot center in Wisconsin Dells, WI, of which Tanger owns 50% interest in through joint venture arrangements and two centers totaling 229,174 square feet for which we only have management responsibilities.
 
 
9
Consolidated Balance Sheets (dollars in thousands)

   
3/31/07
  
12/31/06
  
9/30/06
  
6/30/06
  
3/31/06
  
Assets
                                
Rental property
                                
Land
  
$
130,137
  
$
130,137
  
$
130,250
  
$
119,876
  
$
119,969
  
Buildings
    
1,071,691
    
1,068,070
    
1,059,725
    
1,017,245
    
1,005,300
  
Construction in progress
    
23,944
    
18,640
    
--
    
51,260
    
32,459
  
Total rental property
    
1,225,772
    
1,216,847
    
1,189,975
    
1,188,381
    
1,157,728
  
Accumulated depreciation
    
(287,720
)
  
(275,372
)
  
(266,054
)
  
(266,958
)
  
(257,256
)
Total rental property - net
   
938,052
    
941,475
    
923,921
    
921,423
    
900,472
  
Cash & cash equivalents
    
3,273
    
8,453
    
20,197
    
1,785
    
2,153
  
Assets held for sale
    
--
    
--
    
--
    
--
    
--
  
Investments in unconsolidated joint  ventures
    
14,052
    
14,451
    
14,581
    
15,130
    
14,960
  
Deferred charges - net
    
52,312
    
55,089
    
57,915
    
56,867
    
59,497
  
Other assets
    
21,149
    
21,409
    
26,819
    
27,008
    
38,148
  
Total assets
  
$
1,028,838
  
$
1,040,877
  
$
1,043,433
  
$
1,022,213
  
$
1,015,230
  
Liabilities, minority interest & shareholders’ equity
  
   
   
   
 
Liabilities
                                
Debt
                               
Senior, unsecured notes, net of discount
  
$
498,685
  
$
498,668
  
$
498,650
  
$
349,132
  
$
349,115
  
Mortgages payable, including premium
    
178,363
    
179,911
    
181,420
    
198,177
    
199,662
  
Unsecured note
    
--
    
--
    
--
    
53,500
    
53,500
  
Unsecured lines of credit
    
--
    
--
    
--
    
49,800
    
47,100
  
Total debt
    
677,048
    
678,579
    
680,070
    
650,609
    
649,377
  
Construction trade payables
    
22,226
    
23,504
    
21,049
    
22,372
    
14,247
  
Accounts payable & accruals
    
25,680
    
25,094
    
27,254
    
22,095
    
21,434
  
Total liabilities
    
724,994
    
727,177
    
728,373
    
695,076
    
685,058
  
Minority interest in operating partnership
    
37,193
    
39,024
    
39,270
    
53,541
    
54,124
  
Shareholders’ equity
                                
Preferred shares
    
75,000
    
75,000
    
75,000
    
75,000
    
75,000
  
Common shares
    
313
    
310
    
310
    
310
    
309
  
Paid in capital
    
347,933
    
346,361
    
345,411
    
332,103
    
330,545
  
Distributions in excess of net income
    
(158,902
)
  
(150,223
)
  
(147,030
)
  
(142,497
)
  
(136,853
)
Accum. other compreh. income
   
2,307
    
3,228
    
2,099
    
8,680
    
7,047
  
Total shareholders’ equity
    
266,651
    
274,676
    
275,790
    
273,596
    
276,048
  
Total liabilities, minority interest & shareholders’ equity
  
$
1,028,838
  
$
1,040,877
  
$
1,043,433
  
$
1,022,213
  
$
1,015,230
  
 
 
10
Consolidated Statements of Operations (dollars and shares in thousands)
 
   
Three Months Ended
  
YTD
  
 
    
03/07 
    
12/06
    
09/06
    
06/06
    
03/06
    
03/07
    
03/06
  
Revenues
                                            
Base rentals
  
$
35,227
  
$
36,449
  
$
35,403
  
$
33,879
  
$
32,965
  
$
35,227
  
$
32,965
  
Percentage rentals
    
1,468
   
2,896
    
1,736
    
1,398
    
1,158
    
1,468
    
1,158
  
Expense reimbursements
    
15,045
   
17,165
    
14,890
    
13,747
    
12,720
    
15,045
    
12,720
  
Other income
    
1,501
   
2,039
    
2,407
    
1,504
    
1,355
    
1,501
    
1,355
  
Total revenues
    
53,241
   
58,549
    
54,436
    
50,528
    
48,198
    
53,241
    
48,198
  
Expenses
    
   
   
   
   
   
   
 
Property operating
    
17,005
   
19,285
    
17,139
    
15,995
    
14,765
    
17,005
    
14,765
  
General & administrative
    
4,277
   
4,402
    
4,147
    
4,077
    
4,081
    
4,277
    
4,081
  
Depreciation & amortization
    
18,487
   
14,082
    
13,578
    
13,593
    
15,950
    
18,487
    
15,950
  
Abandoned acquisition due diligence costs
    
--
    
944
    
574
    
--
    
--
    
--
    
--
  
Total expenses
    
39,769
   
38,713
    
35,438
    
33,665
    
34,796
    
39,769
    
34,796
  
Operating income
    
13,472
   
19,836
    
18,998
    
16,863
    
13,402
    
13,472
    
13,402
  
Interest expense (1)
    
10,056
   
9,919
    
10,932
    
9,890
    
10,034
    
10,056
    
10,034
  
Income before equity in earnings of
unconsolidated joint ventures and minority interest
   
3,416
   
9,917
    
8,066
    
6,973
    
3,368
    
3,416
    
3,368
  
Equity in earnings of unconsolidated joint ventures
    
235
   
297
    
539
    
285
    
147
    
235
    
147
  
Minority interest in operating partnership
    
(370
)
  
(1,455
)
  
(1,191
)
  
(969
)
  
(381
)
  
(370
)
  
(381
)
Income from continuing operations
    
3,281
    
8,759
    
7,414
    
6,289
    
3,134
    
3,281
    
3,134
  
Discontinued operations (2)
    
--
    
--
    
--
    
--
    
11,713
    
--
    
11,713
  
Net income
    
3,281
    
8,759
    
7,414
    
6,289
    
14,847
    
3,281
    
14,847
  
Less applicable preferred share dividends
    
(1,406
)
  
(1,406
)
  
(1,406
)
  
(1,406
)
  
(1,215
)
  
(1,406
)
  
(1,215
)
Net income available to common
shareholders
  
$
1,875
  
$
7,353
  
$
6,008
  
$
4,883
  
$
13,632
  
$
1,875
  
$
13,632
  
Basic earnings per common share:
    
   
   
   
   
   
   
 
Income from continuing operations
  
$
.06
  
$
.24
  
$
.20
  
$
.16
  
$
.06
  
$
.06
  
$
.06
  
Net income
 
$
.06
  
$
.24
  
$
.20
  
$
.16
  
$
.45
  
$
.06
  
$
.45
  
Diluted earnings per common share:
    
   
   
   
   
   
   
 
Income from continuing operations
  
$
.06
  
$
.23
  
$
.19
  
$
.16
  
$
.06
  
$
.06
  
$
.06
  
Net income
  
$
.06
  
$
.23
  
$
.19
  
$
.16
  
$
.44
  
$
.06
  
$
.44
  
Weighted average common shares:
    
   
   
   
   
   
   
 
Basic
    
30,743
    
30,651
    
30,619
    
30,593
    
30,531
    
30,743
    
30,531
  
Diluted
    
31,550
    
31,380
    
30,983
    
30,915
    
30,861
    
31,550
    
30,861
  
 

(1)  
Three months ended September 30, 2006 includes a prepayment premium and deferred loan cost write off of $917,000.
(2)  
In accordance with SFAS No. 144 “Accounting for the Impairment or Disposal of Long Lived Assets”, the results of operations for properties sold for which we have no significant continuing involvement, including any gain or loss on such sales, and properties classified as assets held for sale, 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
  
 
    
03/07 
    
12/06
    
09/06
    
06/06
    
03/06
    
03/07
    
03/06
  
Funds from operations:
                                            
Net income
 
$
3,281
  
$
8,759
  
$
7,414
  
$
6,289
  
$
14,847
  
$
3,281
  
$
14,847
  
Adjusted for -
                                           
Minority interest in operating Partnership
    
370
    
1,455
    
1,191
    
969
    
381
    
370
    
381
  
Minority interest, depreciation
and amortization in discontinued operations
    
--
    
--
    
--
    
--
    
2,444
    
--
    
2,444
  
Depreciation and amortization
uniquely significant to real estate -wholly owned
    
18,412
    
14,015
    
13,512
    
13,526
    
15,885
    
18,412
    
15,885
  
Depreciation and amortization
uniquely significant to real estate -joint ventures
   
654
    
623
    
444
    
379
    
379
    
654
    
379
  
(Gain) on sale of real estate
    
--
    
--
    
--
    
--
    
(13,833
)
  
--
    
(13,833
)
Preferred share dividend
    
(1,406
)
  
(1,406
)
  
(1,406
)
  
(1,406
)
  
(1,215
)
  
(1,406
)
  
(1,215
)
Funds from operations
  
$
21,311
  
$
23,446
  
$
21,155
  
$
19,757
  
$
18,888
  
$
21,311
  
$
18,888
  
                                             
Funds from operations per share
  
$
.57
  
$
.63
  
$
.57
  
$
.53
  
$
.51
  
$
.57
  
$
.51
  
Funds available for distribution:
                                            
Funds from operations
  
$
21,311
  
$
23,446
  
$
21,155
  
$
19,757
  
$
18,888
  
$
21,311
  
$
18,888
  
Adjusted For - 
                                            
Corporate depreciation
excluded above
    
75
    
67
    
67
    
66
    
65
    
75
    
65
  
Amortization of finance costs
    
418
    
413
    
386
    
298
    
298
    
418
    
298
  
Early extinguishment of debt
    
--
    
--
    
917
    
--
    
--
    
--
    
--
  
Amortization of share compensation
    
832
    
651
    
880
    
661
    
481
    
832
    
481
  
Straight line rent adjustment
    
(714
)
  
(521
)
  
(633
)
  
(601
)
  
(464
)
  
(714
)
  
(464
)
Market rent adjustment
    
(364
)
  
(332
)
  
(326
)
  
(348
)
  
(458
)
  
(364
)
  
(458
)
Market rate interest adjustment
    
(585
)
  
(592
)
  
(589
)
  
(581
)
  
(568
)
  
(585
)
  
(568
)
2nd generation tenant allowances
    
(6,047
)
  
(3,351
)
  
(2,527
)
  
(2,017
)
  
(1,650
)
  
(6,047
)
  
(1,650
)
Capital improvements
    
(1,880
)
  
(3,041
)
  
(2,911
)
  
(2,913
)
  
(2,424
)
  
(1,880
)
  
(2,424
)
Funds available for distribution
  
$
13,046
  
$
16,740
  
$
16,419
  
$
14,322
  
$
14,168
  
$
13,046
  
$
14,168
  
Funds available for distribution
per share
  
$
.35
  
$
.45
  
$
.44
  
$
.39
  
$
.38
  
$
.35
  
$
.38
  
Dividends paid per share
  
$
.34
  
$
.34
  
$
.34
  
$
.34
  
$
.3225
  
$
.34
  
$
.3225
  
                                             
FFO payout ratio
    
60
%
  
54
%
  
60
%
  
64
%
  
63
%
  
60
%
  
63
%
FAD payout ratio
    
97
%
  
76
%
  
77
%
  
87
%
  
85
%
  
97
%
  
85
%
Diluted weighted average common shs.
    
37,616
    
37,447
    
37,050
    
36,982
    
36,928
    
37,616
    
36,928
  

12


Unconsolidated Joint Venture Information - All
Summary Balance Sheets (dollars in thousands)
 
 
 
3/31/07
 
 
12/31/06
 
 
9/30/06
 
 
6/30/06
 
 
3/31/06
  
 
Tanger’s Share as of 3/31/07 (1)
Assets
              
Investment properties at cost - net
$74,017
$74,253
$74,913
$37,474
$64,463
  
$37,009
Construction in progress
44,049
38,449
29,776
65,298
26,562
  
14,683
Cash and cash equivalents
3,260
6,539
14,173
2,926
5,284
  
1,382
Deferred charges - net
2,294
2,824
2,122
1,805
1,729
  
1,097
Other assets
16,663
15,239
21,141
13,220
10,647
  
7,252
Total assets
$140,283
$137,304
$142,125
$120,723
$108,685
  
$61,423
               
Liabilities & Owners’ Equity
              
Mortgage payable
$103,444
$100,138
$99,561
$77,380
$69,323
  
$45,264
Construction trade payables
1,283
2,734
6,162
9,665
6,646
  
642
Accounts payable & other liabilities
4,696
2,767
2,904
858
1,035
  
2,316
Total liabilities
109,423
105,639
108,627
87,903
77,004
  
48,222
Owners’ equity
30,860
31,665
33,498
32,820
31,681
  
13,201
Total liabilities & owners’ equity
$140,283
$137,304
$142,125
$120,723
$108,685
  
$61,423

Summary Statements of Operations (dollars in thousands)

 
Three Months Ended
YTD
 
03/07
12/06
09/06
06/06
03/06
03/07
03/06
Revenues
$4,636
$4,434
$4,441
$3,171
$2,657
$4,636
$2,657
Expenses
              
Property operating
1,764
1,457
1,726
1,202
1,030
1,764
1,030
General & administrative
42
82
58
66
7
42
7
Depreciation & amortization
1,357
1,283
924
788
786
1,357
786
Total expenses
3,163
2,822
2,708
2,056
1,823
3,163
1,823
Operating income
1,473
1,612
1,733
1,115
834
1,473
834
Interest expense
1,056
1,060
700
578
569
1,056
569
Net income
$417
$552
$1,033
$537
$265
$417
$265
Tanger’s share of:
              
Total revenues less property
operating and general &
administrative expenses (“NOI”)
 
 
$1,417
 
 
$1,457
 
 
$1,334
 
 
$952
 
 
$810
 
 
$1,417
 
 
$810
Net income
$235
$297
$539
$285
$147
$235
$147
Depreciation (real estate related)
$655
$623
$444
$379
$379
$655
$379

13

Unconsolidated Joint Venture Information - TWMB Associates, LLC (Myrtle Beach, SC)
Summary Balance Sheets (dollars in thousands)
 
 
 
3/31/07
 
 
12/31/06
 
 
09/30/06
 
 
06/30/06
 
 
03/31/06
  
 
Tanger’s Share as of 3/31/07
Assets
              
 Investment properties at cost - net
$36,681
$36,476
$36,842
$37,474
$38,137
  
$18,341
Cash and cash equivalents
1,769
1,941
2,067
1,761
2,093
  
885
Deferred charges - net
1,034
1,043
1,095
1,119
1,159
  
517
Other assets
2,151
1,888
1,928
3,020
2,473
  
1,075
Total assets
$41,635
$41,348
$41,932
$43,374
$43,862
  
$20,818
               
Liabilities & Owners’ Equity
              
Mortgage payable
$35,800
$35,800
$35,800
$35,800
$35,800
  
$17,900
Construction trade payables
1,031
321
155
174
174
  
516
Accounts payable & other liabilities
580
119
256
541
491
  
290
Total liabilities
37,411
36,240
36,211
36,515
36,465
  
18,706
Owners’ equity
4,224
5,108
5,721
6,859
7,397
  
2,112
Total liabilities & owners’ equity
$41,635
$41,348
$41,932
$43,374
$43,862
  
$20,818

Summary Statements of Operations (dollars in thousands)

 
Three Months Ended
YTD
 
03/07
12/06
     09/06
06/06
03/06
03/07
03/06
Revenues
$2,767
$2,842
$3,016
$2,976
$2,657
$2,767
$2,657
Expenses
              
Property operating
1,069
1,050
1,068
1,035
1,030
1,069
1,030
General & administrative
6
5
2
20
7
6
7
Depreciation & amortization
807
807
797
788
786
807
786
Total expenses
1,882
1,862
1,867
1,843
1,823
1,882
1,823
Operating income
885
980
1,149
1,133
834
885
834
Interest expense
551
564
573
578
569
551
569
Net income
$334
$416
$576
$555
$265
$334
$265
Tanger’s share of:
              
Total revenues less property
operating and general &
administrative expenses (“NOI”)
 
 
$846
 
 
$893
 
 
$973
 
 
$961
 
 
$810
 
 
$846
 
 
$810
Net income
$181
$216
$303
$292
$147
$181
$147
Depreciation (real estate related)
$390
$395
$384
$379
$379
$390
$379

14

Unconsolidated Joint Venture Information - Tanger Wisconsin Dells, LLC
Summary Balance Sheets (dollars in thousands)
 
 
03/31/07
          
12/31/06
    
09/30/06
    
06/30/06
    
03/31/06
    
Tanger’s Share as of 03/31/07
 
Assets
                                      
Investment properties at cost - net
  
$
37,336
  
$
37,777
  
$
38,071
  
$
--
  
$
--
  
$
18,668
  
Construction in progress
    
--
    
--
    
--
    
37,582
    
26,562
    
--
  
Cash and cash equivalents
    
2
    
681
    
668
    
220
    
18
    
1
  
Deferred charges - net
    
959
    
1,011
    
1,026
    
685
    
569
    
480
  
Other assets
    
8,034
    
7,463
    
7,834
    
148
    
18
    
4,017
  
Total assets
  
$
46,331
  
$
46,932
  
$
47,599
  
$
38,635
  
$
27,167
  
$
23,166
  
                                       
Liabilities & Owners’ Equity
                                      
Mortgage payable
 
$
28,894
  
$
28,894
  
$
26,154
  
$
16,508
  
$
8,194
  
$
14,447
  
Construction trade payables
    
252
    
2,413
    
6,007
    
9,491
    
6,472
    
126
  
Accounts payable & other liabilities
    
3,922
    
2,454
    
2,454
    
147
    
1
    
1,961
  
Total liabilities
    
33,068
    
33,761
    
34,615
    
26,146
    
14,667
    
16,534
  
Owners’ equity
    
13,263
    
13,171
    
12,984
    
12,489
    
12,500
    
6,632
  
Total liabilities & owners’ equity
  
$
46,331
  
$
46,932
  
$
47,599
  
$
38,635
  
$
27,167
  
$
23,166
  

Summary Statements of Operations (dollars in thousands)

   
Three Months Ended
  
YTD
  
 
    
03/07 
    
12/06
    
09/06
    
06/06
    
03/06
    
03/07
    
03/06
  
Revenues
  
$
1,856
  
$
1,573
  
$
1,409
  
$
162
  
$
--
  
$
1,856
  
$
--
  
Expenses
                                            
Property operating
    
695
    
407
    
658
    
167
    
--
    
695
    
--
  
General & administrative
    
10
    
7
    
6
    
6
    
--
    
10
    
--
  
Depreciation & amortization
    
550
    
476
    
127
    
--
    
--
    
550
    
--
  
Total expenses
    
1,255
    
890
    
791
    
173
    
--
    
1,255
    
--
  
Operating income
    
601
    
683
    
618
    
(11
)
  
--
    
601
    
--
  
Interest expense
    
505
    
496
    
127
    
--
    
--
    
505
    
--
  
Net income (loss)
  
$
96
  
$
187
  
$
491
  
$
(11
)
$
--
  
$
96
  
$
--
  
Tanger’s share of:
                                            
Total revenues less property
operating and general &
administrative expenses (“NOI”)
  
$
576
  
$
580
  
$
372
  
$
(5
)
$
--
  
$
576
  
$
--
  
Net income (loss)
  
$
58
  
$
105
  
$
248
  
$
(5
)
$
--
  
$
58
  
$
--
  
Depreciation (real estate related)
  
$
265
  
$
228
  
$
60
  
$
--
  
$
--
  
$
265
  
$
--
  

15

Unconsolidated Joint Venture Information - Deer Park Enterprise, LLC
Summary Balance Sheets (dollars in thousands)
 
 
 
03/31/07
 
 
12/31/06
 
 
09/30/06
 
 
06/30/06
 
 
03/31/06
  
 
Tanger’s Share as of 03/31/07
Assets
              
Investment in properties at cost - net
$ --
$ --
$ --
$ --
$26,326
  
$ --
Construction in progress
44,049
38,449
29,776
27,716
--
  
14,683
Cash and cash equivalents
1,489
3,917
11,438
945
3,173
  
496
Deferred charges - net
301
770
1
1
1
  
100
Other assets
6,478
5,888
11,379
10,052
8,156
  
2,160
Total assets
$52,317
$49,024
$52,594
$38,714
$37,656
  
$17,439
               
Liabilities & Owners’ Equity
              
Mortgage payable
$38,750
$35,444
$37,607
$25,072
$25,329
  
$ 12,917
Accounts payable & other liabilities
194
194
194
170
543
  
64
Total liabilities
38,944
35,638
37,801
25,242
25,872
  
12,981
Owners’ equity
13,373
13,386
14,793
13,472
11,784
  
4,458
Total liabilities & owners’ equity
$52,317
$49,024
$52,594
$38,714
$37,656
  
$17,439

Summary Statements of Operations (dollars in thousands)

   
Three Months Ended
  
YTD
  
   
03/07
  
12/06
  
09/06
  
06/06
  
03/06
  
03/07
  
03/06
  
Revenues
  
$
13
  
$
19
  
$
16
  
$
33
  
$
--
  
$
13
  
$
--
  
Expenses
                                            
Property operating
    
--
    
--
    
--
    
--
    
--
    
--
    
--
  
General & administrative
    
26
    
70
    
50
    
40
    
--
    
26
    
--
  
Depreciation & amortization
    
--
    
--
    
--
    
--
    
--
    
--
    
--
  
Total expenses
    
26
    
70
    
50
    
40
    
--
    
26
    
--
  
Operating income
    
(13
)
  
(51
)
  
(34
)
  
(7
)
  
--
    
(13
)
  
--
  
Interest expense
    
--
    
--
    
--
    
--
    
--
    
--
    
--
  
Net loss
  
$
(13
)
$
(51
)
$
(34
)
$
(7
)
$
--
  
$
(13
)
$
--
  
Tanger’s share of:
                                            
Total revenues less property
operating and general &
administrative expenses (“NOI”)
  
$
(4
)
$
(17
)
$
(12
)
$
(2
)
$
--
  
$
(4
)
$
--
  
Net loss
  
$
(4
)
$
(17
)
$
(12
)
$
(2
)
$
--
  
$
(4
)
$
--
  
Depreciation (real estate related)
  
$
--
  
$
--
  
$
--
  
$
--
  
$
--
  
$
--
  
$
--
  

16

Debt Outstanding Summary (dollars in thousands)

As of March 31, 2007
 
Principal
Balance
Interest
Rate
Maturity
Date
Mortgage debt
      
COROC Holdings, LLC, including centers
located in Rehoboth Beach, DE; Foley, AL;
Myrtle Beach (Hwy 501), SC; Hilton Head,
SC; Park City, UT; Westbrook, CT;
Lincoln City, OR; Tuscola, IL; Tilton, NH
 
 
 
 
$175,506
 
 
 
 
6.590%
 
 
 
 
07/10/08
 
Net debt premium, COROC Holdings, LLC (1)
 
2,857
    
Total mortgage debt
178,363
    
       
Unsecured debt
      
  Unsecured credit facilities
---
Libor + 0.85%
06/30/09
2008 Senior unsecured notes
100,000
9.125%
02/15/08
2015 Senior unsecured notes
250,000
6.15%
11/15/15
2026 Senior unsecured exchangeable notes
149,500
3.75%
8/15/26
Net discount, senior unsecured notes
(815)
    
Total unsecured debt
498,685
    
Total debt
$677,048
    
Senior Unsecured Notes Financial Covenants (2)

As of March 31, 2007
 
Required
Actual
Compliance
Total Consolidated Debt to Adjusted Total Assets
60%
50%
Yes
Total Secured Debt to Adjusted Total Assets
40%
13%
Yes
Total Unencumbered Assets to Unsecured Debt
135%
149%
Yes
Consolidated Income Available for Debt Service to Annual Debt Service Charge
 
2.00
 
3.17
 
Yes

(1)  
Represents a net premium on mortgage debt related to the Charter Oak acquisition.
(2)  
For a complete listing of all Debt Covenants related to the Company’s Senior Unsecured Notes, as well as definitions of the above terms, please refer to the Company’s filings with the Securities and Exchange Commission.

17

Future Scheduled Principal Payments (dollars in thousands)

As of March 31, 2007
 
 
Year
Scheduled  
Amortization
Payments  
 
Balloon  
Payments
Total    
Scheduled
Payments
2007
$2,827
$ --
$ 2,827
2008
2,328
270,351
272,679
2009
--
--
--
2010
--
--
--
2011
--
--
--
2012
--
--
--
2013
--
--
--
2014
--
--
--
2015
--
250,000
250,000
2016 & thereafter
--
149,500 (1)
149,500
 
$5,155
$669,851
$675,006
Net Premium on Debt
 
2,042
     
$677,048
 
 

(1) Of this amount, $149.5 million represents our exchangeable, senior unsecured notes issued in August 2006. On and after August 18, 2011, holders may exchange their notes for cash in an amount equal to the lesser of the exchange value and the aggregate principal amount of the notes to be exchanged, and, at our option, Company common shares, cash or a combination thereof for any excess. Note holders may exchange their notes prior to August 18, 2011 only upon the occurrence of specified events. In addition, on August 18, 2011, August 15, 2016 or August 15, 2021, note holders may require us to repurchase the notes for an amount equal to the principal amount of the notes plus any accrued and unpaid interest thereon.

 

18

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
 
 
19


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