-----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, VohbofW1zRp8eFs17xOZGO4S6sYgd8uhBgzhpMDphl/g7a3rni2ej91tcXkez+dp t8e5FuQDukjdUemKqXgkSA== 0000899715-07-000095.txt : 20070802 0000899715-07-000095.hdr.sgml : 20070802 20070802162809 ACCESSION NUMBER: 0000899715-07-000095 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20070630 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070802 DATE AS OF CHANGE: 20070802 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: 071020839 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 tfoc8k08022007.htm TFOC 8-K tfoc8k08022007.htm
 
 

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):  August 2, 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 August 2, 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 June 30, 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 August 2, 2007, the Company made publicly available certain supplemental operating and financial information for the quarter ended June 30, 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 June 30, 2007.

Exhibit 99.2
Supplemental operating and financial information of the Company as of and for the quarter ended June 30, 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:  August 2, 2007

TANGER FACTORY OUTLET CENTERS, INC.

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



_____________________________________________________________________________________________

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 June 30, 2007.

99.2  
      Supplemental operating and financial information of the Company as of and for the quarter ended June 30, 2007.

 


 EX-99.1 2 tfoc8k08022007ex99-1.htm EXHIBIT 99.1 tfoc8k08022007ex99-1.htm

Tanger Factory Outlet Centers, Inc.

News Release

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

TANGER REPORTS SECOND QUARTER 2007 RESULTS
12.1% Increase in Total FFO, 11.3% Increase in FFO Per Share,
14.5% Increase in Base Rental Rates on Signed Renewals

Greensboro, NC, August 2, 2007, Tanger Factory Outlet Centers, Inc. (NYSE:SKT) today reported funds from operations available to common shareholders (“FFO”), a widely accepted measure of REIT performance, for the three months ended June 30, 2007 increased 12.1% to $22.1 million, or $0.59 per share, as compared to FFO of $19.8 million, or $0.53 per share, for the three months ended June 30, 2006.  For the six months ended June 30, 2007, FFO increased 12.5% to $43.5 million, or $1.16 per share, as compared to FFO of $38.6 million, or $1.05 per share, for the six months ended June 30, 2006.

For the three months ended June 30, 2007, net income available to common shareholders increased 2.8% to $5.0 million or $0.16 per share, as compared to $4.9 million, or $0.16 per share for the second quarter of 2006.  During the first quarter of the previous year, Tanger recognized a net gain on the sale of real estate of $13.8 million.  As a result, the company reported net income available to common shareholders of $18.5 million, or $0.60 per share for the six months ended June 30, 2006, compared to $6.9 million, or $0.22 per share for the first six months 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 press release.

Second Quarter Highlights

 
·  
14.5% average increase in base rental rates on 286,000 square feet of signed renewals during the second quarter of 2007, 13.6% increase year to date
 
·  
47.9% average increase in base rental rates on 108,000 square feet of re-leased space during the second quarter of 2007, 40.1% increase year to date
 
·  
96.6% occupancy rate for wholly-owned properties, up 1.5% from March 31, 2007
 
·  
$340 per square foot in reported same-space tenant sales for the rolling twelve months ended June 30, 2007, up 3.0% compared to the twelve months ended June 30, 2006
 
·  
2.3% increase in same center net operating income, 2.7% increase year to date
 
·  
31.7% debt-to-total market capitalization ratio, compared to 33.8% last year
 
·  
3.25 times interest coverage ratio for the three months ended June 30, 2007 compared to 3.08 times last year
 

Stanley K. Tanger, Chairman of the Board and Chief Executive Officer, commented, “Our second quarter results were outstanding.  Our funds from operations per share increased 11.3%, while average tenant sales increased 3.0% during the second quarter of 2007.  Construction continues to proceed at our two newest locations, one south of Pittsburgh, Pennsylvania and the other in Deer Park, Long Island, New York.  Both projects are expected to open next year, providing future earnings growth for our company”.

     
    
      

Portfolio Operating Results

During the second quarter of 2007, Tanger executed 93 leases, totaling 394,000 square feet within its wholly-owned properties.  Lease renewals during the second quarter of 2007 accounted for 286,000 square feet and generated a 14.5% increase in average base rental rates on a straight-line basis. Base rental increases on re-tenanted space during the second quarter averaged 47.9% on a straight-line basis and accounted for the remaining 108,000 square feet.  For the first six months of 2007, 1,020,000 square feet of renewals generated a 13.6% increase in average straight-line base rental rates, and represented 65.6% of the 1,554,000 square feet originally scheduled to expire during 2007.  Re-tenanted space during the first six months totaled 429,000 square feet and generated a 40.1% increase in average base rental rates on a straight-line basis.

Same center net operating income increased 2.3% for the second quarter of 2007 compared to the same period in 2006 and 2.7% for the first six months of 2007.  Reported tenant comparable sales per square foot for the rolling twelve months ended June 30, 2007 increased 3.0% to $340 per square foot.

Investment and Other Activities

Tanger continues the development and leasing of two previously announced sites located in Washington County, south of 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 68% of the 308,000 square foot first phase signed and an additional 23% out for signature.  The company currently expects delivery of the initial phase in the second quarter of 2008, with stores opening in the third quarter of 2008.  The Pittsburgh center will be wholly owned by Tanger.

Demolition of the buildings located at the Deer Park site has been completed and construction is underway.  The company currently expects this center will contain over 800,000 square feet upon final build-out.  Site work and construction has begun on a 685,000 square foot initial phase and the company has approximately 38% of the space signed and an additional 24% out for signature.  Tanger currently expects the project will be delivered in the second quarter of 2008, with stores opening in the third 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.  The company also announced in May of this year in conjunction with the ICSC convention held in Las Vegas, that it has started the initial pre-development and leasing for two additional sites which it has under control.  These sites are located in Burlington, New Jersey at Exit 47 on Interstate I-295 and Port St. Lucie, Florida at Exit 118 on Interstate I-95.  Tenant interest in all three locations appears to be strong.  However, at this time, Tanger is in the initial study periods on all three of these potential new locations.  As such, there can be no assurance that any of these sites will ultimately be developed.

Financing Activities and Balance Sheet Summary

As of June 30, 2007, Tanger had $683.5 million of debt outstanding, equating to a 31.7% debt-to-total market capitalization ratio.  As of June 30, 2007, 98.8% of Tanger’s debt was at fixed interest rates and the company had $7.9 million outstanding on its $200.0 million in available unsecured lines of credit.  During the second quarter of 2007, Tanger continued to maintain a strong interest coverage ratio of 3.25 times, compared to 3.08 times during the second quarter of last year.

        
2
      

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 $0.68 and $0.76 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                   $ 0.68         $ 0.76
Minority interest, depreciation and amortization uniquely
significant to real estate including minority interest
share and our share of joint ventures                    1.72             1.72

Estimated diluted FFO per share                         $ 2.40           $ 2.48

Second Quarter Conference Call

Tanger will host a conference call to discuss its first quarter results for analysts, investors and other interested parties on Friday, August 3, 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 Second 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 http://www.tangeroutlet.com/investorrelations/news.

A telephone replay of the call will be available from August 3, 2007 starting at 12:00 P.M. Eastern Time through August 17, 2007, by dialing 1-800-642-1687 (conference ID # 5576124).  Additionally, an online archive of the broadcast will also be available through August 17, 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 June 30, 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.


         
3
      
    

TANGER FACTORY OUTLET CENTERS, INC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
 
 
 
 
 
 
 
Three months ended
 
Six months ended
 
 
June 30,
 
June 30,
 
 
2007
 
2006
 
2007
 
2006
   
(unaudited)
  
(unaudited)
  
(unaudited)
  
(unaudited)
  
REVENUES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
Base rentals (a)
  
$
36,456
    
$
33,879
    
$
71,683
    
$
66,844
    
 
Percentage rentals
    
1,662
      
1,398
      
3,130
      
2,556
    
 
Expense reimbursements
    
15,798
      
13,747
      
30,843
      
26,467
    
 
Other income (b)
    
1,596
      
1,504
      
3,097
      
2,859
    
   
Total revenues
    
55,512
      
50,528
      
108,753
      
98,726
    
                                   
EXPENSES
                                  
 
Property operating
    
17,916
      
15,995
      
34,921
      
30,760
    
 
General and administrative
    
4,907
      
4,077
      
9,184
      
8,158
    
 
Depreciation and amortization
    
15,539
      
13,593
      
34,026
      
29,543
    
   
Total expenses
    
38,362
      
33,665
      
78,131
      
68,461
    
Operating income
    
17,150
      
16,863
      
30,622
      
30,265
    
Interest expense
    
10,072
      
9,890
      
20,128
      
19,924
    
Income before equity in earnings of
                                  
 
unconsolidated joint ventures, minority
                                  
 
interest and discontinued operations
    
7,078
      
6,973
      
10,494
      
10,341
    
Equity in earnings of unconsolidated joint ventures
    
334
      
285
      
569
      
432
    
Minority interest in operating partnership
    
(987
)
    
(969
)
    
(1,357
)
    
(1,350
)
  
Income from continuing operations
    
6,425
      
6,289
      
9,706
      
9,423
    
Discontinued operations, net of minority interest (c)
    
---
      
---
      
---
      
11,713
    
Net income
    
6,425
      
6,289
      
9,706
      
21,136
    
Preferred share dividends
    
(1,407
)
    
(1,406
)
    
(2,813
)
    
(2,621
)
  
Net income available to common shareholders
  
$
5,018
    
$
4,883
    
$
6,893
    
$
18,515
    
                                   
Basic earnings per common share:
                                  
 
Income from continuing operations
  
$
.16
    
$
.16
    
$
.22
    
$
.22
    
  
Net income
  
$
.16
    
$
.16
    
$
.22
    
$
.61
    
                                   
Diluted earnings per common share:
                                  
 
Income from continuing operations
  
$
.16
    
$
.16
    
$
.22
    
$
.22
    
 
Net income
  
$
.16
    
$
.16
    
$
.22
    
$
.60
    
                                   
Funds from operations available to
                                  
 
common shareholders (FFO)
  
$
22,146
    
$
19,757
    
$
43,457
    
$
38,645
    
FFO per common share – diluted
  
$
.59
    
$
.53
    
$
1.16
    
$
1.05
    
                                   
Summary of discontinued operations (c)
                                  
 
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 $1,075 and $948 for the three months ended and $2,153 and $1,863 for the six months ended June 30, 2007 and 2006, respectively.
  
(b) Includes gains on sale of outparcels of land of $115 and $225 for the three and six months ended June 30, 2006.
  
(c) 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 above periods in which we have no significant continuing involvement have been reported above as discontinued operations for all periods presented.
  

      
4
             

TANGER FACTORY OUTLET CENTERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
June 30,
 
December 31,
  
 
 
2007
 
2006
  
 
 
(Unaudited)
 
(Unaudited)
  
ASSETS:
 
 
 
 
 
 
 
 
  
 
Rental property
                  
   
Land
 
$
130,138
 
 
$
130,137
 
  
   
Buildings, improvements and fixtures
 
 
1,074,260
 
 
 
1,068,070
 
  
   
Construction in progress
 
 
39,728
 
 
 
18,640
 
  
     
1,244,126
      
1,216,847
    
   
Accumulated depreciation
    
(296,319
)
    
(275,372
)
  
   
Rental property, net
 
 
947,807
  
 
 
941,475
    
 
Cash and cash equivalents
 
 
1,223
 
 
 
8,453
 
  
 
Investments in unconsolidated joint ventures
    
14,324
      
14,451
    
 
Deferred charges, net
 
 
49,795
 
 
 
55,089
 
  
 
Other assets
 
 
28,904
 
 
 
21,409
 
  
 
Total assets
 
 $
1,042,053
 
 
 $
1,040,877
 
  
 
LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS’ EQUITY:
Liabilities
 
 
 
 
 
 
 
 
  
 
Debt
                  
 
Senior, unsecured notes (net of discount of $796 and
                  
 
$832, respectively)
  
$
498,704
    
$
498,668
    
 
Mortgages payable (including a debt premium of $2,260 and
                  
 
$3,441, respectively)
    
176,850
      
179,911
    
 
Unsecured lines of credit
    
7,900
      
---
    
 
Total debt
    
683,454
      
678,579
    
Construction trade payables
    
27,840
      
23,504
    
Accounts payable and accrued expenses
    
26,656
      
25,094
    
 
Total liabilities
    
737,950
      
727,177
    
                   
Commitments
                  
Minority interest in operating partnership
    
37,191
      
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 June 30, 2007
                  
 
and December 31, 2006
    
75,000
      
75,000
    
 
Common shares, $.01 par value, 150,000,000 shares authorized,
                  
 
31,304,701 and 31,041,336 shares issued and outstanding
                  
 
at June 30, 2007 and December 31, 2006, respectively
    
313
      
310
    
 
Paid in capital
    
349,599
      
346,361
    
 
Distributions in excess of earnings
    
(165,139
)
    
(150,223
)
  
 
Accumulated other comprehensive income
    
7,139
      
3,228
    
 
Total shareholders’ equity
    
266,912
      
274,676
    
 
Total liabilities, minority interest and shareholders’
                  
   
equity
  
$
1,042,053
    
$
1,040,877
    
                   

      
    
5
 
    

TANGER FACTORY OUTLET CENTERS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(in thousands, except per share, state and center information)
 
 
 
 
 
 
 
Three months ended
 
Six months ended
 
 
June 30,
 
June 30,
 
 
2007
 
2006
 
2007
 
2006
   
(unaudited)
  
(unaudited)
  
(unaudited)
  
(unaudited)
  
FUNDS FROM OPERATIONS (a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
Net income
  
$
6,425
    
$
6,289
    
$
9,706
    
$
21,136
    
 
Adjusted for:
                                  
 
Minority interest in operating partnership
    
987
      
969
      
1,357
      
1,350
    
 
Minority interest, depreciation and amortization
                                  
 
attributable to discontinued operations
    
---
      
---
      
---
      
2,444
    
 
Depreciation and amortization uniquely significant to
                                  
 
real estate – consolidated
    
15,461
      
13,526
      
33,873
      
29,411
    
 
Depreciation and amortization uniquely significant to
                                  
 
real estate – unconsolidated joint ventures
    
680
      
379
      
1,334
      
758
    
 
Gain on sale of real estate
    
---
      
---
      
---
      
(13,833
)
  
 
Funds from operations (FFO)
    
23,553
      
21,163
      
46,270
      
41,266
    
 
Preferred share dividends
    
(1,407
)
    
(1,406
)
    
(2,813
)
    
(2,621
)
  
 
Funds from operations available to common
                                  
 
shareholders
  
$
22,146
    
$
19,757
    
$
43,457
    
$
38,645
    
 
Funds from operations available to common
                                  
 
shareholders per share - diluted
  
$
.59
    
$
.53
    
$
1.16
    
$
1.05
    
                                   
WEIGHTED AVERAGE SHARES
                                  
 
Basic weighted average common shares
    
30,824
      
30,593
      
30,784
      
30,562
    
 
Effect of exchangeable notes
    
381
      
---
      
381
      
---
    
 
Effect of outstanding share and unit options
    
215
      
220
      
231
      
233
    
 
Effect of unvested restricted share awards
    
127
      
102
      
141
      
94
    
 
Diluted weighted average common shares (for earnings
                                  
 
per share computations)
    
31,547
      
30,915
      
31,537
      
30,889
    
 
Convertible operating partnership units (b)
    
6,067
      
6,067
      
6,067
      
6,067
    
 
Diluted weighted average common shares (for funds
                                  
 
from operations per share computations)
    
37,614
      
36,982
      
37,604
      
36,956
    
                                   
OTHER INFORMATION
                                  
Gross leasable area open at end of period -
                                  
Wholly owned
    
8,354
      
8,029
      
8,354
      
8,029
    
Partially owned – unconsolidated
    
667
      
402
      
667
      
402
    
Managed
    
229
      
293
      
229
      
293
    
                                   
Outlet centers in operation -
                                  
Wholly owned
    
30
      
29
      
30
      
29
    
Partially owned – unconsolidated
    
2
      
1
      
2
      
1
    
Managed
    
2
      
3
      
2
      
3
    
                                   
States operated in at end of period (c)
    
21
      
21
      
21
      
21
    
Occupancy at end of period (c) (d)
    
96.6
%
    
96.2
%
    
96.6
%
    
96.2
%
  
                                   


      
6
      
      


(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.

     
    
7
 

 EX-99.2 3 tfoc8k08022007ex99-2.htm EXHIBIT 99.2 tfoc8k08022007ex99-2.htm

Tanger Factory Outlet Centers, Inc.


Supplemental Operating and Financial Data

June 30, 2007







      
                                   
      
 
 
 
 
 
 
 
                               Supplemental Operating and Financial Data for the      
      
        Quarter Ended 6/30/07      
      
   
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 June 30, 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 June 30, 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
601,994
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
8,353,819
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
6/30/07
 
% Occupied
6/30/07
 
% Occupied
3/31/07
 
% Occupied
12/31/06
 
% Occupied
9/30/06
 
% Occupied
6/30/06
Riverhead, NY
729,315
99%
97%
100%
98%
99%
Rehoboth, DE
568,926
99%
98%
99%
100%
99%
Foley, AL
522,419
98%
96%
98%
96%
96%
San Marcos, TX
442,510
99%
98%
99%
98%
99%
Myrtle Beach, SC
426,417
97%
94%
95%
94%
94%
Sevierville, TN
419,038
99%
98%
100%
100%
100%
Hilton Head, SC
393,094
88%
85%
88%
88%
84%
Charleston, SC
352,260
93%
90%
89%
81%
n/a
Commerce II, GA
347,025
96%
94%
99%
96%
99%
Howell, MI
324,631
99%
99%
100%
99%
100%
Park City, UT
300,602
100%
99%
100%
99%
100%
Locust Grove, GA
293,868
95%
94%
99%
93%
94%
Westbrook, CT
291,051
94%
93%
99%
96%
92%
Branson, MO
277,883
100%
98%
100%
99%
100%
Williamsburg, IA
277,230
98%
95%
99%
98%
97%
Lincoln City, OR
270,280
96%
99%
97%
96%
98%
Tuscola, IL
256,514
72%
69%
77%
70%
70%
Lancaster, PA
255,152
99%
99%
100%
100%
100%
Gonzales, LA
243,499
100%
98%
100%
100%
100%
Tilton, NH
227,849
99%
96%
100%
94%
99%
Fort Myers, FL
198,950
96%
97%
100%
100%
94%
Commerce I, GA
185,750
90%
90%
90%
87%
93%
Terrell, TX
177,490
100%
98%
99%
91%
99%
West Branch, MI
112,120
100%
87%
96%
100%
98%
Barstow, CA
109,600
100%
100%
100%
100%
95%
Blowing Rock, NC
104,280
99%
97%
100%
100%
100%
Nags Head, NC
82,178
100%
100%
100%
100%
100%
Boaz, AL
79,575
96%
92%
98%
98%
92%
Kittery I, ME
59,694
100%
100%
100%
100%
100%
Kittery II, ME
24,619
94%
94%
94%
94%
100%
Total
8,353,819
   97% (2)
   95% (2)
   98% (2)
   96% (2)
96%

 
(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)

06/07    03/07    12/06    09/06    06/06    03/06    12/05    09/05    06/05
 (2)   (2)        (2)       (2)
 97%     95%      98%     96%      96%      95%      97%      96%     97%
 
(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 June 30, 2007
 
Tenant
# of   
Stores
 
GLA
% of    
Total GLA
The Gap, Inc.
62
629,698
7.5%
Phillips-Van Heusen
94
448,564
5.4%
Liz Claiborne
39
305,978
3.6%
Adidas
34
274,371
3.2%
VF Factory Outlet
29
266,819
3.2%
Dress Barn, Inc.
36
238,352
2.9%
Nike
17
222,098
2.7%
Carter’s
43
213,191
2.6%
Polo Ralph Lauren
22
185,128
2.2%
Jones Retail Corporation
66
184,404
2.2%
Total of All Listed Above
442
2,968,603
35.5%

 
(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.

 
7
 
 
Lease Expirations as of June 30, 2007

 

Percentage of Total Gross Leasable Area (1)
 
2007      2008      2009        2010        2011        2012        2013       2014       2015       2016        2017+
6.00%       17.00%      19.00%    17.00%    19.00%   13.00%    2.00%    1.00%     1.00%     2.00%     3.00%



Percentage of Total Annualized Base Rent (1)
 
2007      2008      2009        2010        2011        2012        2013       2014       2015       2016        2017+
5.00%       15.00%      17.00%    20.00%   18.00%   12.00%    2.00%    2.00%     2.00%     3.00%      4.00%



 
(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
                  
31
          
120
                
104
  
    Gross leasable area
    
321,288
      
107,874
          
429,162
      
370,567
  
    New initial base rent per square foot
   $
21.54
     $
23.41
         $
22.01
     $
19.33
  
    Prior expiring base rent per square foot
   $
16.57
     $
17.82
         $
16.88
     $
15.88
  
    Percent increase
     30.0 %     31.4 %         30.4 %     21.7 %
                                     
    New straight line base rent per square foot
   $
22.51
     $
25.01
         $
23.14
     $
20.04
  
    Prior straight line base rent per square foot
   $
16.39
     $
16.90
         $
16.52
     $
15.70
  
    Percent increase
     37.4 %     47.9 %         40.1 %     27.7 %
                                     
Renewed Space:
                                    
    Number of leases
    
156
      
62
          
218
      
289
  
    Gross leasable area
    
733,856
      
286,013
          
1,019,869
      
1,258,721
  
    New initial base rent per square foot
   $
18.32
     $
16.04
         $
17.68
     $
17.34
  
    Prior expiring base rent per square foot
   $
16.73
     $
14.28
         $
16.04
     $
15.96
  
    Percent increase
     9.5 %     12.3 %         10.2 %     8.7 %
                                     
   New straight line base rent per square foot
   $
18.71
     $
16.25
         $
18.02
     $
17.53
  
    Prior straight line base rent per square foot
   $
16.52
     $
14.19
         $
15.87
     $
15.62
  
    Percent increase
     13.3 %     14.5 %         13.6 %     12.2 %
                                     
Total Re-tenanted and Renewed Space:
                                    
    Number of leases
    
245
      
93
          
338
      
393
  
    Gross leasable area
    
1,055,144
      
393,887
          
1,449,031
      
1,629,288
  
    New initial base rent per square foot
   $
19.30
     $
18.06
         $
18.96
     $
17.79
  
    Prior expiring base rent per square foot
   $
16.68
     $
15.25
         $
16.29
     $
15.94
  
    Percent increase
     15.7 %     18.4 %         16.4 %     11.6 %
                                     
    New straight line base rent per square foot
   $
19.86
     $
18.65
         $
19.53
     $
18.10
  
    Prior straight line base rent per square foot
   $
16.48
     $
14.94
         $
16.06
     $
15.63
  
    Percent increase
     20.6 %     24.8 %         21.6 %     15.8 %




(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)
   
6/30/07
    
3/31/07
    
12/31/06
    
9/30/06
    
6/30/06
  
Assets
                              
   Rental property
                              
       Land
   $
130,138
     $
130,137
     $
130,137
     $
130,250
     $
119,876
  
       Buildings
    
1,074,260
      
1,071,691
      
1,068,070
      
1,059,725
      
1,017,245
  
       Construction in progress
    
39,728
      
23,944
      
18,640
      
--
      
51,260
  
   Total rental property
    
1,244,126
      
1,225,772
      
1,216,847
      
1,189,975
      
1,188,381
  
       Accumulated depreciation
     (296,319 )     (287,720 )     (275,372 )     (266,054 )     (266,958 )
   Total rental property – net
    
947,807
      
938,052
      
941,475
      
923,921
      
921,423
  
   Cash & cash equivalents
    
1,223
      
3,273
      
8,453
      
20,197
      
1,785
  
   Investments in unconsolidated jointventures
    
14,324
      
14,052
      
14,451
      
14,581
      
15,130
  
   Deferred charges – net
    
49,795
      
52,312
      
55,089
      
57,915
      
56,867
  
   Other assets
    
28,904
      
21,149
      
21,409
      
26,819
      
27,008
  
Total assets
   $
1,042,053
     $
1,028,838
     $
1,040,877
     $
1,043,433
     $
1,022,213
  
Liabilities, minority interest & shareholders’ equity
                              
  Liabilities
                                        
    Debt
                                        
       Senior, unsecured notes, net of discount
   $
498,704
     $
498,685
     $
498,668
     $
498,650
     $
349,132
  
       Mortgages payable, including premium
    
176,850
      
178,363
      
179,911
      
181,420
      
198,177
  
       Unsecured note
    
--
      
--
      
--
      
--
      
53,500
  
       Unsecured lines of credit
    
7,900
      
--
      
--
      
--
      
49,800
  
    Total debt
    
683,454
      
677,048
      
678,579
      
680,070
      
650,609
  
    Construction trade payables
    
27,840
      
22,266
      
23,504
      
21,049
      
22,372
  
    Accounts payable & accruals
    
26,656
      
25,680
      
25,094
      
27,254
      
22,095
  
  Total liabilities
    
737,950
      
724,994
      
727,177
      
728,373
      
695,076
  
  Minority interest in operating partnership
    
37,191
      
37,193
      
39,024
      
39,270
      
53,541
  
  Shareholders’ equity
                                        
    Preferred shares
    
75,000
      
75,000
      
75,000
      
75,000
      
75,000
  
    Common shares
    
313
      
313
      
310
      
310
      
310
  
    Paid in capital
    
349,599
      
347,933
      
346,361
      
345,411
      
332,103
  
    Distributions in excess of net income
     (165,139 )     (158,902 )     (150,223 )     (147,030 )     (142,497 )
    Accum. other compreh. income
    
7,139
      
2,307
      
3,228
      
2,099
      
8,680
  
  Total shareholders’ equity
    
266,912
      
266,651
      
274,676
      
275,790
      
273,596
  
Total liabilities, minority interest & shareholders’ equity
   $
1,042,053
     $
1,028,838
     $
1,040,877
     $
1,043,433
     $
1,022,213
  
 

10
Consolidated Statements of Operations (dollars and shares in thousands)

   
Three Months Ended
    
YTD
  
     
06/07
      
03/07
      
12/06
      
09/06
      
06/06
      
06/07
      
06/06
  
Revenues
                                                        
   Base rentals
   $
36,456
     $
35,227
     $
36,449
     $
35,403
     $
33,879
     $
71,683
     $
66,844
  
   Percentage rentals
    
1,662
      
1,468
      
2,896
      
1,736
      
1,398
      
3,130
      
2,556
  
   Expense reimbursements
    
15,798
      
15,045
      
17,165
      
14,890
      
13,747
      
30,843
      
26,467
  
   Other income
    
1,596
      
1,501
      
2,039
      
2,407
      
1,504
      
3,097
      
2,859
  
      Total revenues
    
55,512
      
53,241
      
58,549
      
54,436
      
50,528
      
108,753
      
98,726
  
Expenses
                                                        
   Property operating
    
17,916
      
17,005
      
19,285
      
17,139
      
15,995
      
34,921
      
30,760
  
   General & administrative
    
4,907
      
4,277
      
4,402
      
4,147
      
4,077
      
9,184
      
8,158
  
   Depreciation &
     amortization
    
15,539
      
18,487
      
14,082
      
13,578
      
13,593
      
34,026
      
29,543
  
   Abandoned acquisition due
     diligence costs
    
--
      
--
      
944
      
574
      
--
      
--
      
--
  
      Total expenses
    
38,362
      
39,769
      
38,713
      
35,438
      
33,665
      
78,131
      
68,461
  
Operating income
    
17,150
      
13,472
      
19,836
      
18,998
      
16,863
      
30,622
      
30,265
  
   Interest expense (1)
    
10,072
      
10,056
      
9,919
      
10,932
      
9,890
      
20,128
      
19,924
  
Income before equity in
   earnings of 
   unconsolidated joint 
   ventures and minority
   interest
    
7,078
      
3,416
      
9,917
      
8,066
      
6,973
      
10,494
      
10,341
  
Equity in earnings of
   unconsolidated
   joint ventures
    
334
      
235
      
297
      
539
      
285
      
569
      
432
  
Minority interest in operating partnership
     (987 )     (370 )     (1,455 )     (1,191 )     (969 )     (1,357 )     (1,350 )
Income from continuing operations
    
6,425
      
3,281
      
8,759
      
7,414
      
6,289
      
9,706
      
9,423
  
Discontinued operations (2)
    
--
      
--
      
--
      
--
      
--
      
--
      
11,713
  
Net income
    
6,425
      
3,281
      
8,759
      
7,414
      
6,289
      
9,706
      
21,136
  
Less applicable preferred share dividends
     (1,407 )     (1,406 )     (1,406 )     (1,406 )     (1,406 )     (2,813 )     (2,621 )
Net income available to
    common shareholders
   $
5,108
     $
1,875
     $
7,353
     $
6,008
     $
4,883
     $
6,893
     $
18,515
  
Basic earnings per common share:
                                                        
   Income from continuing
      operations
   $
.16
     $
.06
     $
.24
     $
.20
     $
.16
     $
.22
     $
.22
  
   Net income
   $
.16
     $
.06
     $
.24
     $
.20
     $
.16
     $
.22
     $
.61
  
Diluted earnings per common share:
                                                        
   Income from continuing 
      operations
   $
.16
     $
.06
     $
.23
     $
.19
     $
.16
     $
.22
     $
.22
  
   Net income
   $
.16
     $
.06
     $
.23
     $
.19
     $
.16
     $
.22
     $
.60
  
Weighted average common shares:
                                                        
   Basic
    
30,824
      
30,743
      
30,651
      
30,619
      
30,593
      
30,784
      
30,562
  
   Diluted
    
31,547
      
31,550
      
31,380
      
30,983
      
30,915
      
31,537
      
30,889
  
 

(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
  
     
06/07
      
03/07
      
12/06
      
09/06
      
06/06
      
06/07
      
06/06
  
Funds from operations:
                                                        
   Net income
   $
6,425
     $
3,281
     $
8,759
     $
7,414
     $
6,289
     $
9,706
     $
21,136
  
   Adjusted for -
                                                        
      Minority interest in 
        operating Partnership
    
987
      
370
      
1,455
      
1,191
      
969
      
1,357
      
1,350
  
      Minority interest,
        depreciation
        and amortization in
        discontinued operations
    
--
      
--
      
--
      
--
      
--
      
--
      
2,444
  
      Depreciation and    
        amortization uniquely  
        significant to real
        estate –  wholly owned
    
15,461
      
18,412
      
14,015
      
13,512
      
13,526
      
33,873
      
29,411
  
      Depreciation and
        amortization uniquely   
        significant to real
        estate – joint ventures
    
680
      
654
      
623
      
444
      
379
      
1,334
      
758
  
      (Gain) on sale of real
        estate
    
--
      
--
      
--
      
--
      
--
      
--
       (13,833 )
      Preferred share dividend
     (1,407 )     (1,406 )     (1,406 )     (1,406 )     (1,406 )     (2,813 )     (2,621 )
Funds from operations
   $
22,146
     $
21,311
     $
23,446
     $
21,155
     $
19,757
     $
43,457
     $
38,645
  
                                                         
Funds from operations per share
   $
.59
     $
.57
     $
.63
     $
.57
     $
.53
     $
1.16
     $
1.05
  
Funds available for distribution:
                                                        
   Funds from operations
   $
22,146
     $
21,311
     $
23,446
     $
21,155
     $
19,757
     $
43,457
     $
38,645
  
   Adjusted For -
                                                        
      Corporate depreciation
          excluded above
    
78
      
75
      
67
      
67
      
66
      
153
      
131
  
      Amortization of finance  
          costs
    
417
      
418
      
413
      
386
      
298
      
835
      
596
  
      Early extinguishment of 
          debt
    
--
      
--
      
--
      
917
      
--
      
--
      
--
  
      Amortization of share
          compensation
    
1,057
      
832
      
651
      
880
      
661
      
1,889
      
1,142
  
      Straight line rent 
          adjustment
     (839 )     (714 )     (521 )     (633 )     (601 )     (1,553 )     (1,065 )
      Market rent adjustment
     (236 )     (364 )     (332 )     (326 )     (348 )     (600 )     (806 )
      Market rate interest
          adjustment
     (597 )     (585 )     (592 )     (589 )     (581 )     (1,182 )     (1,149 )
      2nd generation tenant 
           allowances
     (5,314 )     (6,047 )     (3,351 )     (2,527 )     (2,017 )     (11,361 )     (3,667 )
      Capital improvements
     (2,188 )     (1,880 )     (3,041 )     (2,911 )     (2,913 )     (4,068 )     (5,337 )
Funds available for distribution
   $
14,524
     $
13,046
     $
16,740
     $
16,419
     $
14,322
     $
27,570
     $
28,490
  
Funds available for distribution
   per share
   $
.39
     $
.35
     $
.45
     $
.44
     $
.39
     $
.73
     $
.77
  
Dividends paid per share
   $
.36
     $
.34
     $
.34
     $
.34
     $
.34
     $
.7000
     $
.6625
  
                                                         
FFO payout ratio
     61 %     60 %     54 %     60 %     64 %     60 %     63 %
FAD payout ratio
     92 %     97 %     76 %     77 %     87 %     96 %     86 %
Diluted weighted average common shares
    
37,614
      
37,616
      
37,447
      
37,050
      
36,982
      
37,604
      
36,956
  


12


Unconsolidated Joint Venture Information – All
Summary Balance Sheets (dollars in thousands)
 
 
 
6/30/07
 
 
3/31/07
 
 
12/31/06
 
 
9/30/06
 
 
6/30/06
  
 
Tanger’s Share as of 6/30/07
Assets
              
   Investment properties at cost – net
$ 73,272
$ 74,017
$ 74,253
$ 74,913
$ 37,474
  
$ 36,636
   Construction in progress
55,487
44,049
38,449
29,776
65,298
  
18,496
   Cash and cash equivalents
4,899
3,260
6,539
14,173
2,926
  
2,057
   Deferred charges – net
2,733
2,294
2,824
2,122
1,805
  
1,225
   Other assets
8,843
16,663
15,239
21,141
13,220
  
3,406
Total assets
$145,234
$140,283
$137,304
$142,125
$120,723
  
$ 61,820
               
Liabilities & Owners’ Equity
              
    Mortgage payable
$112,292
$103,444
$100,138
$ 99,561
$ 77,380
  
$ 47,606
    Construction trade payables
1,423
1,283
2,734
6,162
9,665
  
712
    Accounts payable & other liabilities
1,571
4,696
2,767
2,904
858
  
677
Total liabilities
115,286
109,423
105,639
108,627
87,903
  
48,995
Owners’ equity
29,948
30,860
31,665
33,498
32,820
  
12,825
Total liabilities & owners’ equity
$145,234
$140,283
$137,304
$142,125
$120,723
  
$ 61,820

Summary Statements of Operations (dollars in thousands)

 
Three Months Ended
YTD
 
06/07
03/07
12/06
09/06
06/06
06/07
06/06
Revenues
$4,780
$4,636
$4,434
$4,441
$3,171
$9,416
$5,828
Expenses
              
   Property operating
1,596
1,764
1,457
1,726
1,202
3,360
2,232
   General & administrative
117
42
82
58
66
159
73
   Depreciation & amortization
1,409
1,357
1,283
924
788
2,766
1,574
     Total expenses
3,122
3,163
2,822
2,708
2,056
6,825
3,879
Operating income
1,658
1,473
1,612
1,733
1,115
3,131
1,949
   Interest expense
1,061
1,056
1,060
700
578
2,117
1,147
Net income
$   597
$   417
$   552
$1,033
$   537
$1,014
$   802
Tanger’s share of:
              
       Total revenues less property
       operating and general &
       administrative expenses (“NOI”)
 
 
$1,544
 
 
$1,417
 
 
$1,457
 
 
$1,334
 
 
$   952
 
 
$2,961
 
 
$1,762
       Net income
$   334
$   235
$   297
$   539
$   285
$   569
$   432
       Depreciation (real estate related)
$   679
$   655
$   623
$   444
$   379
$1,334
$   758

13

Unconsolidated Joint Venture Information – Myrtle Beach Hwy 17
Summary Balance Sheets (dollars in thousands)
 
 
 
6/30/07
 
 
3/31/07
 
 
12/31/06
 
 
09/30/06
 
 
06/30/06
  
 
Tanger’s Share as of 6/30/07
Assets
              
   Investment properties at cost – net
$36,136
$36,681
$36,476
$36,842
$37,474
  
$18,068
   Cash and cash equivalents
1,826
1,769
1,941
2,067
1,761
  
913
   Deferred charges – net
986
1,034
1,043
1,095
1,119
  
493
   Other assets
2,256
2,151
1,888
1,928
3,020
  
1,128
Total assets
$41,201
$41,635
$41,348
$41,932
$43,374
  
$20,602
               
Liabilities & Owners’ Equity
              
    Mortgage payable
$35,800
$35,800
$35,800
$35,800
$35,800
  
$17,900
    Construction trade payables
1,005
1,031
321
155
174
  
503
    Accounts payable & other liabilities
319
580
119
256
541
  
159
Total liabilities
37,124
37,411
36,240
36,211
36,515
  
18,562
Owners’ equity
4,080
4,224
5,108
5,721
6,859
  
2,040
Total liabilities & owners’ equity
$41,204
$41,635
$41,348
$41,932
$43,374
  
$20,602

Summary Statements of Operations (dollars in thousands)

 
Three Months Ended
YTD
 
06/07
03/07
12/06
09/06
06/06
06/07
06/06
Revenues
$2,997
$2,767
$2,842
$3,016
$2,976
$5,764
$5,633
Expenses
              
   Property operating
1,054
1,069
1,050
1,068
1,035
2,123
2,065
   General & administrative
22
6
5
2
20
28
27
   Depreciation & amortization
817
807
807
797
788
1,624
1,574
     Total expenses
1,893
1,882
1,862
1,867
1,843
3,775
3,666
Operating income
1,104
885
980
1,149
1,133
1,989
1,967
   Interest expense
555
551
564
573
578
1,106
1,147
Net income
$549
$334
$416
$576
$555
$883
$820
Tanger’s share of:
              
       Total revenues less property
       operating and general &
       administrative expenses (“NOI”)
 
 
$961
 
 
$846
 
 
$893
 
 
$973
 
 
$961
 
 
$1.807
 
 
$1,771
       Net income
$289
$181
$216
$303
$292
$470
$439
       Depreciation (real estate related)
$394
$390
$395
$384
$379
$784
$758

14

Unconsolidated Joint Venture Information – Wisconsin Dells
Summary Balance Sheets (dollars in thousands)
 
 
 
06/30/07
 
 
03/31/07
 
 
12/31/06
 
 
09/30/06
 
 
06/30/06
  
 
Tanger’s Share as of 06/30/07
Assets
              
   Investment properties at cost - net
$37,136
$37,336
$37,777
$38,071
$        --
  
$18,568
   Construction in progress
--
--
--
--
37,582
  
--
   Cash and cash equivalents
720
2
681
668
220
  
360
   Deferred charges – net
898
959
1,011
1,026
685
  
449
   Other assets
494
8,034
7,463
7,834
148
  
247
Total assets
$39,248
$46,331
$46,932
$47,599
$38,635
  
$19,624
               
Liabilities & Owners’ Equity
              
    Mortgage payable
$25,250
$28,894
$28,894
$26,154
$16,508
  
$12,625
    Construction trade payables
418
252
2,413
6,007
9,491
  
209
    Accounts payable & other liabilities
607
3,922
2,454
2,454
147
  
303
Total liabilities
26,275
33,068
33,761
34,615
26,146
  
13,137
Owners’ equity
12,973
13,263
13,171
12,984
12,489
  
6,487
Total liabilities & owners’ equity
$39,248
$46,331
$46,932
$47,599
$38,635
  
$19,624

Summary Statements of Operations (dollars in thousands)

 
Three Months Ended
YTD
 
06/07
03/07
12/06
09/06
06/06
06/07
06/06
Revenues
$1,177
$1,856
$1,573
$1,409
$162
$3,633
$162
Expenses
              
   Property operating
542
695
407
658
167
1,237
167
   General & administrative
26
10
7
6
6
36
6
   Depreciation & amortization
592
550
476
127
--
1,142
--
     Total expenses
1,160
1,255
890
791
173
2,415
173
Operating income
617
601
683
618
(11)
1,218
(11)
   Interest expense
506
505
496
127
--
1,011
--
Net income (loss)
$111
$96
$187
$491
$(11)
$207
$(11)
Tanger’s share of:
              
       Total revenues less property
       operating and general &
       administrative expenses (“NOI”)
 
 
$605
 
 
$576
 
 
$580
 
 
$372
 
 
$(5)
 
 
$1,180
 
 
$(5)
       Net income (loss)
$67
$58
$105
$248
$(5)
$125
$(5)
       Depreciation (real estate related)
      $285
      $265
      $228
      $  60
       $--
      $550
$  --

15

Unconsolidated Joint Venture Information – Deer Park
Summary Balance Sheets (dollars in thousands)
 
 
 
06/30/07
 
 
03/31/07
 
 
12/31/06
 
 
09/30/06
 
 
06/30/06
  
 
Tanger’s Share as of 06/30/07
Assets
              
   Construction in progress
$55,487
$44,049
$38,449
$29,776
$27,716
  
$18,496
   Cash and cash equivalents
2,353
1,489
3,917
11,438
945
  
784
   Deferred charges – net
849
301
770
1
1
  
283
   Other assets
6,093
6,478
5,888
11,379
10,052
  
2,031
Total assets
$64,782
$52,317
$49,024
$52,594
$38,714
  
 $21,594
               
Liabilities & Owners’ Equity
              
    Mortgage payable
$51,242
$38,750
$35,444
$37,607
$25,072
  
$17,081
    Accounts payable & other liabilities
645
194
194
194
170
  
215
Total liabilities
51,887
38,944
35,638
37,801
25,242
  
17,296
Owners’ equity
12,895
13,373
13,386
14,793
13,472
  
4,298
Total liabilities & owners’ equity
$64,782
$52,317
$49,024
$52,594
$38,714
  
$21,594

Summary Statements of Operations (dollars in thousands)

   
Three Months Ended
    
YTD
  
     
06/07
      
03/07
      
12/06
      
09/06
      
06/06
      
06/07
      
06/06
  
Revenues
   $
6
     $
13
     $
19
     $
16
     $
33
     $
19
     $
33
  
Expenses
                                                        
   Property operating
    
--
      
--
      
--
      
--
      
--
      
--
      
--
  
   General & administrative
    
69
      
26
      
70
      
50
      
40
      
95
      
40
  
   Depreciation & 
   amortization
    
--
      
--
      
--
      
--
      
--
      
--
      
--
  
     Total expenses
    
69
      
26
      
70
      
50
      
40
      
95
      
40
  
Operating income
     (63 )     (13 )     (51 )     (34 )     (7 )     (76 )     (7 )
   Interest expense
    
--
      
--
      
--
      
--
      
--
      
--
      
--
  
Net loss
   $ (63 )   $ (13 )   $ (51 )   $ (34 )   $ (7 )   $ (76 )   $ (7 )
Tanger’s share of:
                                                        
        Total revenues less
         property operating
        and general &
        administrative  
       expenses (“NOI”)
   $ (21 )   $ (4 )   $ (17 )   $ (12 )   $ (2 )   $ (25 )   $ (2 )
       Net loss
   $ (21 )   $ (4 )   $ (17 )   $ (12 )   $ (2 )   $ (25 )   $ (2 )
       Depreciation (real estate
       related)
   $
--
     $
--
     $
--
     $
--
     $
--
     $
--
     $
--
  

16

Debt Outstanding Summary (dollars in thousands)

 

As of June 30, 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
   $
174,590
       6.590 %
 
 
 
 
07/10/08
 
   Net debt premium, COROC Holdings, LLC (1)
    
2,260
            
Total mortgage debt
    
176,850
            
                   
Unsecured debt
                  
   Unsecured credit facilities
    
7,900
    
            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
     (796 )          
Total unsecured debt
    
506,604
            
Total debt
   $
683,454
            
 
Senior Unsecured Notes Financial Covenants (2)
 
As of June 30, 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%
150%
Yes
Consolidated Income Available for Debt Service to               
      Annual Debt Service Charge
 
2.00
 
3.37
 
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 June 30, 2007
  
 
 
Year
  
Scheduled
Amortization
Payments
    
Balloon
Payments
    
Total
Scheduled
Payments
  
2007
   $
1,911
     $
--
     $
1,911
  
2008
    
2,328
      
270,351
      
272,679
  
2009
    
--
      
7,900
      
7,900
  
2010
    
--
      
--
      
--
  
2011
    
--
      
--
      
--
  
2012
    
--
      
--
      
--
  
2013
    
--
      
--
      
--
  
2014
    
--
      
--
      
--
  
2015
    
--
      
250,000
      
250,000
  
2016 & thereafter
    
--
       149,500 (1)    
149,500
  
    $
4,239
     $
667,751
     $
681,990
  
Net Premium on Debt
              
1,464
  
                    $
683,454
  

 
(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) 292-6825
Fax:      (336) 297-0931
e-mail:   tangermail@tangeroutlet.com
Mail:     Tanger Factory Outlet Centers, Inc.
              3200 Northline Avenue
              Suite 360
              Greensboro, NC  27408
 
 
 
 
 
 
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