-----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, QVKwBPUAo66tX5zbIb7uNTgjEpchlbXPy/5J7jImcgEgoqFzjThtpNO8Y5Xa8krK VFWHVVhN5CD6Va0t6HH6yg== 0000899715-08-000007.txt : 20080212 0000899715-08-000007.hdr.sgml : 20080212 20080212162329 ACCESSION NUMBER: 0000899715-08-000007 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20071231 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080212 DATE AS OF CHANGE: 20080212 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: 1030 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11986 FILM NUMBER: 08598744 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 tfoc8k12312007.htm TFOC 8-K tfoc8k12312007.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):  February 12, 2008


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 February 12, 2008, 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 December 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 February 12, 2008, the Company made publicly available certain supplemental operating and financial information for the quarter ended December 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 December 31, 2007.

Exhibit 99.2
Supplemental operating and financial information of the Company as of and for the quarter ended December 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:  February 12, 2008

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 December 31, 2007.

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





EX-99.1 2 tfoc8k12312007ex99-1.htm EXHIBIT 99.1 tfoc8k12312007ex99-1.htm

Tanger Factory Outlet Centers, Inc.

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

TANGER REPORTS YEAR END RESULTS FOR 2007
12.6% Increase in Total FFO
5.3% Increase in Same Center NOI


Greensboro, NC, February 12, 2008, Tanger Factory Outlet Centers, Inc. (NYSE:SKT) today reported strong financial results for the quarter and year ended December 31, 2007.  Funds from operations available to common shareholders (“FFO”), a widely accepted supplemental measure of REIT performance, for the three months ended December 31, 2007, increased 12.3% to $26.3 million, or $0.70 per share, as compared to FFO of $23.4 million, or $0.63 per share, for the three months ended December 31, 2006.  For the year ended December 31, 2007, FFO increased 12.6% to $93.7 million, or $2.48 per share, as compared to FFO of $83.2 million, or $2.24 per share, for the year ended December 31, 2006.

Net income available to common shareholders for the three months ended December 31, 2007 increased 23.3% to $9.1 million, or $0.28 per share, compared to $7.4 million, or $0.23 per share for the fourth 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 $31.9 million, or $1.03 per share for the year ended December 31, 2006, compared to $23.0 million, or $0.72 per share for the current year.  Income from continuing operations for the year ended December 31, 2007 increased 11.8% to $28.5 million, or $0.72 per share, compared to $25.5 million, or $0.64 per share, for the year ended December 31, 2006.

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.

Highlights of Achievements
 
·  
8.6% increase in same center net operating income for the fourth quarter of 2007, 5.3% increase for the year
 
·  
39.7% average increase in base rental rates on 610,000 square feet of re-leased space during 2007, compared to a 22.9% average increase in the prior year
 
·  
13.9% increase in average base rental rates on 1.2 million square feet of signed renewals during 2007, compared to an 11.4% average increase in the prior year
 
·  
97.6% occupancy rate for wholly-owned stabilized properties, compared to 97.3% as of September 30, 2007 and 97.5% as of December 31, 2006
 
·  
$342 per square foot in reported tenant comparable sales for the rolling twelve months ended December 31, 2007, up 1.2% compared to the twelve months
ended December 31, 2006
 
·  
Increase in unsecured line of credit capacity by 50% from $200 million to $300 million
 
·  
32.2% debt-to-total market capitalization ratio, 3.38 times interest coverage ratio for the year
 

 
Stanley K. Tanger, Chairman of the Board and Chief Executive Officer, commented, “Our annual FFO per share of $2.48 was at the high end of the most recent guidance.  The core business continued to produce solid results as same center NOI for the year was up 5.3%.  Our management team is energized and looking forward to what should be a successful 2008.”

National Platform Continues to Drive Operating Results

Tanger’s broad geographic representation and established brand name within the factory outlet industry continues to generate solid operating results.  The company’s portfolio of properties had a year-end occupancy rate of 97.6%, representing the 27th consecutive year since the company commenced operations in 1981 that it has achieved a year-end portfolio occupancy rate at or above 95%.

During 2007, Tanger executed 460 leases, totaling 1,856,000 square feet relating to its existing, wholly-owned properties.  For the year, 1,246,000 square feet of renewals generated a 13.9% increase in average base rental rates, and represented 79.2% of the square feet originally scheduled to expire during 2007.  Average base rental rates on re-tenanted space during the year increased 39.7% and accounted for the remaining 610,000 square feet.

Tanger continues to derive its rental income from a diverse group of national brand name manufacturers and retailers with no single tenant accounting for more than 7.9% of its gross leasable area and 5.4% of its total base and percentage rentals.

Same center net operating income increased 8.6% for the fourth quarter and 5.3% for the year ended December 31, 2007 compared to the same periods in 2006.  This follows same center net operating income increases of 3.1% in 2006, 3.8% in 2005 and 1.2% in 2004.

Reported tenant comparable sales per square foot for the rolling three months ended December 31, 2007 increased 1.8%, while sales for the rolling twelve months ended December 31, 2007 increased 1.2% to $342 per square foot.  Tanger’s average tenant occupancy cost as a percentage of average sales was 7.7% for 2007 compared to 7.4% in 2006, 7.5% in 2005 and 7.3% in 2004.

Investment Activities Provide Future Earnings Growth

Tanger continues the development, construction and leasing of two previously announced sites located in Washington County, south of Pittsburgh, Pennsylvania and in Deer Park (Long Island), New York.  In response to strong tenant demand for space, Tanger increased the size of the initial phase of the Pittsburgh center from 308,000 square feet to 370,000 square feet, with leases for approximately 63% of the first phase signed and an additional 20% under negotiation or out for signature.  The company currently expects delivery of the initial phase in the second quarter of 2008, with stores opening by the end of the third quarter of 2008.  The Pittsburgh center will be wholly owned by Tanger.

The company currently expects the Deer Park center will contain over 800,000 square feet upon final build-out.  Site work and construction continues on an initial phase of approximately 682,000 square foot.  The company has approximately 51% of the space signed and an additional 22% under negotiation or out for signature.  Tanger currently expects the project will be delivered in the second quarter of 2008, with stores opening by the end of 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 a potential new development site located in Mebane, North Carolina on the highly traveled Interstate 40/85 corridor.  The company also has an additional site under control in Port St. Lucie, Florida at Exit 118 on Interstate I-95.  Tenant interest in these two new locations appears to be strong and Tanger is continuing with its predevelopment work.


Successful Increase in Unsecured Credit Lines Provides Additional Liquidity

As of December 31, 2007, the company had $33.9 million in floating rate debt outstanding, representing 4.8% of its total debt.  Tanger’s total market capitalization as of December 31, 2007 was approximately $2.2 billion, with $706.3 million of debt outstanding, equating to a debt to total market capitalization of 32.2% as of December 31, 2007.  During the year ended December 31, 2007, the company continued to maintain an interest coverage ratio of 3.38 times.

In January 2008, the company successfully increased it unsecured line of credit capacity by 50% from $200 million to $300 million and has obtained commitments for an additional $25 million, which Tanger expects to close during February 2008.  The borrowing rate on the lines of credit remained the same, ranging from LIBOR plus 75 basis points to LIBOR plus 85 basis points.

On February 15, 2008, the company’s $100 million, 9 1/8% unsecured senior notes mature.  Tanger currently expects to refinance these notes in the short term with amounts available under its unsecured lines of credit.  On July 10, 2008 the company’s only remaining mortgage loan with a principal balance of $172.7 million and bearing interest at a rate of 6.59% will become payable at Tanger’s option.  At that time, the company can decide to repay the loan in full, or it can continue to make monthly payments on the loan at a revised interest rate of 8.59%.  Tanger can then repay the loan in full on any monthly payment date without penalty.  The final maturity date on the loan is July 10, 2028.  Tanger is currently analyzing its various options with respect to refinancing this mortgage.

In 2008 Tanger Expects Additional Growth in FFO Per Share

Based on Tanger’s internal budgeting process, the company’s view on current market conditions, and the strength and stability of its core portfolio, Tanger currently believes its net income available to common shareholders for 2008 will be between $0.93 and $1.01 per share and its FFO available to common shareholders for 2008 will be between $2.60 and $2.68 per share.  The company’s earnings estimates do not include 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 per share:
Low Range               High Range
Estimated diluted net income per common share                     $  0.93         $  1.01
Minority interest, gain/loss on the sale of real estate,
depreciation and amortization uniquely
significant to real estate including minority interest
share and our share of joint ventures                         1.67             1.67
Estimated diluted FFO per share                                 $  2.60          $  2.68

The mid point of the company’s guidance range represents a 6.5% growth in FFO for 2008.  Tanger projects same center net operating income growth of approximately 4%.


 
 
 
 
 
 

Year End Conference Call

Tanger will host a conference call to discuss its year end 2007 results for analysts, investors and other interested parties on Wednesday, February 13, 2008, 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 fourth quarter and year end 2007 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/ under the News Releases section.
A telephone replay of the call will be available from February 13, 2008 starting at 11:00 A.M. Eastern Time through 11:59 P.M., February 29, 2008, by dialing 1-800-642-1687 (conference ID # 29901085).  Additionally, an online archive of the broadcast will also be available through February 29, 2008.

About Tanger Factory Outlet Centers

Tanger Factory Outlet Centers, Inc. (NYSE: SKT) is a fully integrated, self-administered and self-managed publicly traded REIT.  The company currently owns 29 centers in 21 states coast to coast, totaling approximately 8.4 million square feet of gross leasable area.  Tanger also owns a 50% interest in two centers containing approximately 667,000 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 December 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 the renewal and re-tenanting of space, tenant sales and sales trends, interest rates, funds from operations, the development of new centers, 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, our ability to lease our properties, our inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise, and competition.  For a more detailed discussion of the factors that affect our operating results, interested parties should review the Tanger Factory Outlet Centers, Inc. Annual Report on Form 10-K for the fiscal year ended December 31, 2006 (and December 31, 2007, when available).
 

TANGER FACTORY OUTLET CENTERS, INC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
         
   
Three months ended
  
Year ended
   
December 31,
  
December 31,
   
2007
  
2006
  
2007
  
2006
REVENUES
                                  
 
Base rentals (a)
  
$
38,210
    
$
36,285
    
$
146,824
    
$
138,101
    
 
Percentage rentals
    
3,323
      
2,890
      
8,757
      
7,182
    
 
Expense reimbursements
    
18,482
      
17,126
      
65,978
      
58,397
    
 
Other income (b)
    
1,963
      
2,034
      
7,206
      
7,282
    
   
Total revenues
    
61,978
      
58,335
      
228,765
      
210,962
    
                                   
EXPENSES
                                  
 
Property operating
    
20,490
      
20,119
      
74,383
      
68,302
    
 
General and administrative
    
4,911
      
4,402
      
19,007
      
16,706
    
 
Depreciation and amortization
    
14,940
      
14,034
      
63,810
      
57,012
    
   
Total expenses
    
40,341
      
38,555
      
157,200
      
142,020
    
Operating income
    
21,637
      
19,780
      
71,565
      
68,942
    
 
Interest expense (c)
    
9,851
      
9,919
      
40,066
      
40,775
    
Income before equity in earnings of
                                  
 
unconsolidated joint ventures, minority
                                  
 
interest and discontinued operations
    
11,786
      
9,861
      
31,499
      
28,167
    
Equity in earnings of unconsolidated joint ventures
    
443
      
297
      
1,473
      
1,268
    
Minority interest in operating partnership
    
(1,778
)
    
(1,446
)
    
(4,494
)
    
(3,970
)
  
Income from continuing operations
    
10,451
      
8,712
      
28,478
      
25,465
    
Discontinued operations, net of minority interest (d)
    
22
      
47
      
98
      
11,844
    
Net income
    
10,473
      
8,759
      
28,576
      
37,309
    
Less applicable preferred share dividends
    
(1,406
)
    
(1,406
)
    
(5,625
)
    
(5,433
)
  
Net income available to common shareholders
  
$
9,067
    
$
7,353
    
$
22,951
    
$
31,876
    
                                   
Basic earnings per common share:
                                  
 
Income from continuing operations
  
$
.29
    
$
.24
    
$
.74
    
$
.65
    
 
Net income
  
$
.29
    
$
.24
    
$
.74
    
$
1.04
    
                                   
Diluted earnings per common share:
                                  
 
Income from continuing operations
  
$
.29
    
$
.23
    
$
.72
    
$
.64
    
 
Net income
  
$
.29
    
$
.23
    
$
.72
    
$
1.03
    
                                   
Summary of discontinued operations (d)
                                  
 
Operating income from discontinued operations
  
$
21
    
$
56
    
$
112
    
$
365
    
 
Gain on sale of real estate
    
6
      
---
      
6
      
13,833
    
 
Income from discontinued operations
    
27
      
56
      
118
      
14,198
    
 
Minority interest in discontinued operations
    
(5)
      
(9
)
    
(20
)
    
(2,354
)
  
Discontinued operations, net of minority interest
  
$
22
    
$
47
    
$
98
    
$
11,844
    
                                   
(a) Includes straight-line rent and market rent adjustments of $832 and $855 for the three months ended and $4,023 and $3,686 for the years ended December 31, 2007 and 2006, respectively.
  
(b) Includes gains on sale of outparcels of land of $402 for the year ended December 31, 2006.
  
(c) Includes prepayment premium and deferred loan cost write offs of $917 for the year ended December 31, 2006.
  
(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 year or classified as held for sale as of the end of the year 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 data)
(Unaudited)
                         
   
December 31,
  
December 31,
  
   
2007
  
2006
  
ASSETS:
                  
Rental property
                  
 
Land
  
$
130,075
    
$
130,137
    
 
Buildings, improvements and fixtures
    
1,104,459
      
1,068,070
    
 
Construction in progress
    
52,603
      
18,640
    
     
1,287,137
      
1,216,847
    
 
Accumulated depreciation
    
(312,638
)
    
(275,372
)
  
 
Rental property, net
    
974,499
      
941,475
    
Cash and cash equivalents
    
2,412
      
8,453
    
Investments in unconsolidated joint ventures
    
10,695
      
14,451
    
Deferred charges, net
    
44,804
      
55,089
    
Other assets
    
27,870
      
21,409
    
     
Total assets
  
 $
1,060,280
    
 $
1,040,877
    
 
LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS’ EQUITY:
Liabilities
                  
Debt
                  
 
Senior, unsecured notes (net of discount of $759 and $832,
                  
   
respectively)
  
$
498,741
    
$
498,668
    
 
Mortgages payable (including premium of $1,046 and $3,441,
                  
   
respectively)
    
173,724
      
179,911
    
 
Unsecured lines of credit
    
33,880
      
---
    
 
Total debt
    
706,345
      
678,579
    
Construction trade payables
    
23,813
      
23,504
    
Accounts payable and accrued expenses
    
47,185
      
25,094
    
   
Total liabilities
    
777,343
      
727,177
    
Commitments
                  
Minority interest in operating partnership
    
33,733
      
39,024
    
Shareholders’ equity
                  
Preferred shares, 7.5% Class C, liquidation preference $25 per
                  
 
share, 8,000,000 authorized, 3,000,000 shares
                  
 
issued and outstanding at December 31, 2007 and 2006
    
75,000
      
75,000
    
Common shares, $.01 par value, 150,000,000 authorized, at
                 
 
31,329,241 and 31,041,336 shares issued and outstanding
                  
 
December 31, 2007 and 2006, respectively
    
313
      
310
    
Paid in capital
    
351,817
      
346,361
    
Distributions in excess of earnings
    
(171,625
)
    
(150,223
)
  
Accumulated other comprehensive income (loss)
    
(6,301
)
    
3,228
    
   
Total shareholders’ equity
    
249,204
      
274,676
    
     
Total liabilities, minority interest and shareholders’
                  
       
equity
  
$
1,060,280
    
$
1,040,877
    
                   


 
 
 
 
 


TANGER FACTORY OUTLET CENTERS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(in thousands, except per share, state and center information)
(Unaudited)
         
   
Three months ended
  
Year ended
   
December 31,
  
December 31,
   
2007
  
2006
  
2007
  
2006
                   
FUNDS FROM OPERATIONS (a)
                                  
Net income
  
$
10,473
    
$
8,759
    
$
28,576
    
$
37,309
    
Adjusted for:
                                  
 
Minority interest in operating partnership
    
1,778
      
1,446
      
4,494
      
3,970
    
 
Minority interest, depreciation and amortization
                                  
   
attributable to discontinued operations
    
5
      
57
      
165
      
2,661
    
 
Depreciation and amortization uniquely significant to
                                  
   
real estate – consolidated
    
14,865
      
13,967
      
63,506
      
56,747
    
 
Depreciation and amortization uniquely significant to
                                  
   
real estate – unconsolidated joint ventures
    
626
      
623
      
2,611
      
1,825
    
 
Gain on sale of real estate
    
(6
)
    
---
      
(6
)
    
(13,833
)
  
Funds from operations (FFO)
    
27,741
      
24,852
      
99,346
      
88,679
    
Preferred share dividends
    
(1,406
)
    
(1,406
)
    
(5,625
)
    
(5,433
)
  
Funds from operations available to commonshareholders
  
$
26,335
    
$
23,446
    
$
93,721
    
$
83,246
    
Funds from operations available to common
                                  
 
shareholders per share – diluted
  
$
.70
    
$
.63
    
$
2.48
    
$
2.24
    
                                   
WEIGHTED AVERAGE SHARES
                                  
Basic weighted average common shares
    
30,867
      
30,651
      
30,821
      
30,599
    
Effect of exchangeable notes
    
478
      
310
      
478
      
117
    
Effect of outstanding share and unit options
    
202
      
247
      
214
      
240
    
Effect of unvested restricted share awards
    
178
      
172
      
155
      
125
    
Diluted weighted average common shares (for earnings
    
31,725
      
31,380
      
31,668
      
31,081
    
 
per share computations)
                                  
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)
    
37,792
      
37,447
      
37,735
      
37,148
    
                                   
OTHER INFORMATION
                                  
Gross leasable area open at end of period -
                                  
 
Wholly owned
    
8,398
      
8,388
      
8,398
      
8,388
    
 
Partially owned – unconsolidated
    
667
      
667
      
667
      
667
    
 
Managed
    
---
      
293
      
---
      
293
    
                                   
Outlet centers in operation -
                                  
 
Wholly owned
    
29
      
30
      
29
      
30
    
 
Partially owned – unconsolidated
    
2
      
2
      
2
      
2
    
 
Managed
    
---
      
3
      
---
      
3
    
                                   
States operated in at end of period (c)
    
21
      
21
      
21
      
21
    
Occupancy percentage at end of period (c) (d)
    
97.6
%
    
97.5
%
    
97.6
%
    
97.5
%
  


 
 
 
 
 


TANGER FACTORY OUTLET CENTERS, INC. AND SUBSIDIARIES
FOOTNOTES TO SUPPLEMENTAL INFORMATION

                                 
(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 for the 2007 and 2006 periods which are operated by us through 50% ownership joint ventures and excludes two centers for the 2006 periods for which we only had management responsibilities.
 
(d) Excludes our wholly-owned, non-stabilized center in Charleston, South Carolina for the 2006 periods.
 



EX-99.2 3 tfoc8k12312007ex99-2.htm EXHIBIT 99.2 tfoc8k12312007ex99-2.htm




 

Tanger Factory Outlet Centers, Inc.


Supplemental Operating and Financial Data

December 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 (and December 31, 2007 when available).

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 December 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 December 31, 2007
 
State
 
# of Centers
 
GLA
 
% of GLA
South Carolina
3
1,171,826
14%
Georgia
3
826,643
10%
New York
1
729,315
9%
Texas
2
620,310
7%
Delaware
1
568,926
7%
Alabama
1
557,144
7%
Michigan
2
436,751
5%
Tennessee
1
419,038
5%
Missouri
1
302,992
4%
Utah
1
300,602
4%
Connecticut
1
291,051
4%
Louisiana
1
282,318
3%
Iowa
1
277,230
3%
Oregon
1
270,280
3%
Illinois
1
256,514
3%
Pennsylvania
1
255,152
3%
New Hampshire
1
245,563
3%
Florida
1
198,950
2%
North Carolina
2
186,413
2%
California
1
116,600
1%
Maine
2
84,313
1%
Total (1)
29
8,397,931
100%
 

(1)  
Excludes one 402,013 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.
 
 
4
Property Summary – Occupancy at End of Each Period Shown (1)
 
 
 
Location
 
Total GLA
12/31/07
 
% Occupied
12/31/07
 
% Occupied
9/30/07
 
% Occupied
6/30/07
 
% Occupied
3/31/07
 
% Occupied
12/31/06
Riverhead, NY
729,315
100%
98%
99%
97%
100%
Rehoboth, DE
568,926
99%
98%
99%
98%
99%
Foley, AL
557,144
97%
99%
98%
96%
98%
San Marcos, TX
442,510
99%
99%
99%
98%
99%
Myrtle Beach, SC
426,417
94%
96%
97%
94%
95%
Sevierville, TN
419,038
100%
99%
99%
98%
100%
Hilton Head, SC
393,094
89%
87%
88%
85%
88%
Charleston, SC
352,315
95%
94%
93%
90%
89%
Commerce II, GA
347,025
100%
98%
96%
94%
99%
Howell, MI
324,631
100%
99%
99%
99%
100%
Branson, MO
302,992
100%
100%
100%
98%
100%
Park City, UT
300,602
100%
100%
100%
99%
100%
Locust Grove, GA
293,868
99%
100%
95%
94%
99%
Westbrook, CT
291,051
100%
99%
94%
93%
99%
Gonzales, LA
282,318
100%
100%
100%
98%
100%
Williamsburg, IA
277,230
99%
99%
98%
95%
99%
Lincoln City, OR
270,280
100%
99%
96%
99%
97%
Tuscola, IL
256,514
80%
77%
72%
69%
77%
Lancaster, PA
255,152
100%
100%
99%
99%
100%
Tilton, NH
245,563
100%
100%
99%
96%
100%
Fort Myers, FL
198,950
94%
96%
96%
97%
100%
Commerce I, GA
185,750
91%
90%
90%
90%
90%
Terrell, TX
177,800
100%
100%
100%
98%
99%
Barstow, CA
116,600
97%
100%
100%
100%
100%
West Branch, MI
112,120
100%
100%
100%
87%
96%
Blowing Rock, NC
104,235
100%
98%
99%
97%
100%
Nags Head, NC
82,178
100%
100%
100%
100%
100%
Kittery I, ME
59,694
100%
95%
100%
100%
100%
Kittery II, ME
24,619
94%
94%
94%
94%
94%
Boaz, AL
n/a
n/a
98%
96%
92%
98%
Total
8,397,931
   98%
   97% (2)
   97% (2)
   95% (2)
   98% (2)
 
(1)  
Excludes one 402,013 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.

(2)  
Excludes the occupancy rate at our Charleston, South Carolina center which opened during the third quarter of 2006 and had not yet stabilized.

 
5
 
 
 

 
Portfolio Occupancy at the End of Each Period (1)

 
12/07      09/07(2)      06/07(2)   03/07(2)    12/06(2)   09/06(2)     06/06    03/06    12/05
98%     97%    97%        95%    98%    96%     96%    95%     97%
 
 
 
(1)  
Excludes one 402,013 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.
 
(2)  
Excludes the occupancy rate at our Charleston, South Carolina center which opened during the third quarter of 2006 and had not yet stabilized.
 
 
 
 
 
6
 
Major Tenants (1)
Ten Largest Tenants As of December 31, 2007
 
Tenant
# of  
Stores
 
GLA
% of    
Total GLA
The Gap, Inc.
62
663,807
7.9%
Phillips-Van Heusen
92
429,563
5.1%
Liz Claiborne
37
284,978
3.4%
VF Factory Outlet
30
273,286
3.3%
Nike
21
270,408
3.2%
Adidas
32
265,676
3.2%
Dress Barn, Inc.
36
238,352
2.8%
Carter’s
43
212,221
2.5%
Polo Ralph Lauren
22
188,728
2.3%
Jones Retail Corporation
67
187,229
2.2%
Total of All Listed Above
442
3,014,248
35.9%

 
(1)  
Excludes one 402,013 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.
 
 

 
7
 
 
Lease Expirations as of December 31, 2007

 

 
Percentage of Total Gross Leasable Area (1)
 

2008      2009     2010    2011     2012    2013    2014     2015     2016     2017    2018+
11.00%    17.00%    17. 00%    18.00%      17.00%    9.00%    2.00%    2.00%    2.00%     3.00%    2.00%




Percentage of Total Annualized Base Rent (1)

2008      2009     2010    2011     2012    2013    2014     2015     2016     2017    2018+
10.00%    16.00%    18. 00%    17.00%      17.00%    9.00%    2.00%    2.00%    2.00%     4.00%    2.00%


(1)
Excludes one 402,013 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.
 
 
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
44
8
172
133
    Gross leasable area
321,288
107,874
155,055
25,794
610,011
465,500
    New initial base rent per square foot
$21.54
$23.41
$20.75
$35.41
$22.26
$19.16
    Prior expiring base rent per square foot
$16.57
$17.82
$16.76
$22.01
$17.07
$16.43
    Percent increase
30.0%
31.4%
23.8%
60.9%
30.4%
16.6%
             
    New straight line base rent per square foot
$22.51
$25.01
$21.64
$38.53
$23.41
$19.90
    Prior straight line base rent per square foot
$16.39
$16.90
$16.55
$21.95
$16.75
$16.19
    Percent increase
37.4%
47.9%
30.8%
75.6%
39.7%
22.9%
             
Renewed Space:
            
    Number of leases
156
62
30
40
288
346
    Gross leasable area
733,856
286,013
107,010
118,856
1,245,735
1,465,505
    New initial base rent per square foot
$18.32
$16.04
$18.53
$18.69
$17.85
$17.22
    Prior expiring base rent per square foot
$16.73
$14.28
$16.76
$16.05
$16.11
$15.91
    Percent increase
9.5%
12.3%
10.6%
16.5%
10.8%
8.2%
             
   New straight line base rent per square foot
$18.71
$16.25
$18.21
$19.25
$18.15
$17.43
    Prior straight line base rent per square foot
$16.52
$14.19
$16.58
$16.01
$15.94
$15.65
    Percent increase
13.3%
14.5%
9.8%
20.2%
13.9%
11.4%
             
Total Re-tenanted and Renewed Space:
            
    Number of leases
245
93
74
48
460
479
    Gross leasable area
1,055,144
393,887
262,065
144,650
1,855,746
1,931,005
    New initial base rent per square foot
$19.30
$18.06
$19.84
$21.67
$19.30
$17.68
    Prior expiring base rent per square foot
$16.68
$15.25
$16.76
$17.11
$16.42
$16.04
    Percent increase
15.7%
18.4%
18.4%
26.7%
17.5%
10.3%
             
    New straight line base rent per square foot
$19.86
$18.65
$20.24
$22.69
$19.88
$18.02
    Prior straight line base rent per square foot
$16.48
$14.94
$16.56
$17.07
$16.21
$15.78
    Percent increase
20.6%
24.8%
22.2%
32.9%
22.6%
14.2%

(1)  
Excludes one 402,013 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.


9

 
 
Consolidated Balance Sheets (dollars in thousands)
 
 
 
 
 
12/31/07
9/30/07
6/30/07
3/31/07
12/31/06
Assets
          
   Rental property
          
       Land
$130,075
$129,921
$130,138
$130,137
$130,137
       Buildings
1,104,459
1,074,310
1,074,260
1,071,691
1,068,070
       Construction in progress
52,603
61,364
39,728
23,944
18,640
   Total rental property
1,287,137
1,265,595
1,244,126
1,225,772
1,216,847
       Accumulated depreciation
(312,638)
(302,411)
(296,319)
(287,720)
(275,372)
   Total rental property – net
974,499
963,184
947,807
938,052
941,475
   Cash & cash equivalents
2,412
2,434
1,223
3,273
8,453
   Assets held for sale
--
2,052
--
--
--
   Investments in unconsolidated jointventures
10,695
11,908
14,324
14,052
14,451
   Deferred charges – net
44,804
47,306
49,795
52,312
55,089
   Other assets
  27,870
26,563
28,904
21,149
21,409
Total assets
$1,060,280
$1,053,447
$1,042,053
$1,028,838
$1,040,877
Liabilities, minority interest & shareholders’ equity
 
 
   
  Liabilities
          
    Debt
          
       Senior, unsecured notes, net of discount
$498,741
$498,722
$498,704
$498,685
$498,668
       Mortgages payable, including premium
173,724
175,312
176,850
178,363
179,911
       Unsecured lines of credit
      33,880
      23,300
      7,900
      --
      --
    Total debt
706,345
697,334
683,454
677,048
678,579
    Construction trade payables
23,813
27,943
27,840
22,266
23,504
    Accounts payable & accruals
47,185
35,237
26,656
25,680
25,094
  Total liabilities
777,343
760,514
737,950
724,994
727,177
  Minority interest in operating partnership
       33,733
       35,366
       37,191
       37,193
       39,024
  Shareholders’ equity
 
 
 
 
 
    Preferred shares
75,000
75,000
75,000
75,000
75,000
    Common shares
313
313
313
313
310
    Paid in capital
351,817
350,701
349,599
347,933
346,361
    Distributions in excess of net income
(171,625)
(169,419)
(165,139)
(158,902)
(150,223)
    Accum. other compreh. income (loss)
(6,301)
972
7,139
2,307
3,228
  Total shareholders’ equity
249,204
257,567
266,912
266,651
274,676
Total liabilities, minority interest & shareholders’ equity
$1,060,280
$1,053,447
$1,042,053
$1,028,838
$1,040,877
 

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

 
Three Months Ended
YTD
 
12/07
09/07
06/07
03/07
12/06
12/07
12/06
Revenues
              
   Base rentals
  $    38,210
  $    37,207
  $    36,318
  $    35,089
  $    36,285
  $  146,824
  $  138,101
   Percentage rentals
          3,323
          2,305
          1,662
          1,467
          2,890
          8,757
          7,182
   Expense reimbursements
        18,482
        16,719
        15,764
        15,013
        17,126
        65,978
        58,397
   Other income
          1,963
          2,155
          1,590
          1,498
          2,034
          7,206
          7,282
      Total revenues
        61,978
        58,386
        55,334
        53,067
        58,335
      228,765
      210,962
Expenses
              
   Property operating
        20,490
        19,158
        17,822
        16,913
        20,119
        74,383
        68,302
   General & administrative
          4,911
          4,916
          4,903
          4,277
          4,402
        19,007
        16,706
   Depreciation & amortization
        14,940
        14,941
        15,490
        18,439
        14,034
        63,810
        57,012
      Total expenses
        40,341
        39,015
        38,215
        39,629
        38,555
      157,200
      142,020
Operating income
        21,637
        19,371
        17,119
        13,438
        19,780
        71,565
       68,942
   Interest expense
     9,851
     10,087
      10,072
      10,056
     9,919
      40,066
     40,775
Income before equity in earnings of
   unconsolidated joint ventures, minority
   interest and discontinued operations
 
 
        11,786
 
 
          9,284
 
 
          7,047
 
 
          3,382
 
 
          9,861
 
 
       31,499
 
 
        28,167
Equity in earnings of unconsolidated
   joint ventures
 
             443
 
              461
 
            334
 
            235
 
            297
 
         1,473
 
          1,268
Minority interest in operating partnership
         (1,778)
         (1,370)
           (982)
           (364)
       (1,446)
        (4,494)
         (3,970)
Income from continuing operations
        10,451
          8,375
          6,399
          3,253
         8,712
       28,478
        25,465
Discontinued operations (1)
               22
               22
               26
               28
              47
              98
        11,844
Net income
        10,473
         8,397
         6,425
          3,281
         8,759
       28,576
        37,309
Less applicable preferred share dividends
        (1,406)
       (1,406)
       (1,407)
        (1,406)
       (1,406)
       (5,625)
         (5,433)
Net income available to common
   shareholders
 
$      9,067
 
$      6,991
 
$      5,018
 
$        1,875
 
$      7,353
 
$      22,951
 
$       31,876
Basic earnings per common share:
              
   Income from continuing operations
$        .29
$        .23
$        .16
$           .06
$        .24
$        .74
$          .65
   Net income
$        .29
$        .23
$        .16
$           .06
$        .24
$        .74
$        1.04
Diluted earnings per common share:
              
   Income from continuing operations
$        .29
$        .22
$        .16
$          .06
$        .23
$        .72
$          .64
   Net income
$        .29
$        .22
$        .16
$          .06
$        .23
$        .72
$        1.03
Weighted average common shares:
              
   Basic
      30,867
      30,847
      30,824
       30,743
      30,651
      30,821
      30,599
   Diluted
      31,725
      31,400
      31,547
       31,550
      31,380
      31,668
      31,081
 

(1)  
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
  
      12/07       09/07       06/07       03/07       12/06       12/07       12/06  
Funds from operations:
                                                        
   Net income
   $ 10,473     $ 8,397     $ 6,425     $ 3,281     $ 8,759     $ 28,576     $ 37,309  
   Adjusted for -
                                                        
      Minority interest in operating
        partnership
      1,778        1,370        982        364        1,446        4,494        3,970  
      Minority interest, depreciation
        and amortization in
        discontinued operations
        5          52          54          54          57          165          2,661  
      Depreciation and amortization
        uniquely significant to real estate –
       wholly owned
        14,865          14,865          15,412          18,364          13,967          63,506          56,747  
      Depreciation and amortization
        uniquely significant to real estate –
        joint ventures
          626          651          680          654          623          2,611          1,825  
      (Gain) on sale of real estate
      (6 )     --       --       --       --       (6 )     (13,833 )
      Preferred share dividends
     (1,406 )     (1,406 )     (1,407 )     (1,406 )     (1,406 )     (5,625 )     (5,433 )
Funds from operations
   $ 26,335     $ 23,929     $ 22,146     $ 21,311     $ 23,446     $ 93,721     $ 83,246  
                                                         
Funds from operations per share
   $ .70     $ .64     $ .59     $ .57     $ .63     $ 2.48     $ 2.24  
Funds available for distribution:
                                                        
   Funds from operations
   $ 26,335     $ 23,929     $ 22,146     $ 21,311     $ 23,446     $ 93,721     $ 83,246  
   Adjusted For -
                                                        
      Corporate depreciation
          excluded above
      75        76        78        75        67        304        265  
      Amortization of finance costs
     430       473       417       418       413       1,738       1,395  
      Early extinguishment of debt
     --       --       --       --       --       --       917  
      Amortization of share compensation
     1,103       1,067       1,057       832       651       4,059       2,673  
      Straight line rent adjustment
     (562 )     (753 )     (839 )     (714 )     (521 )     (2,868 )     (2,219 )
      Market rent adjustment
     (270 )     (277 )     (236 )     (364 )     (332 )     (1,147 )     (1,464 )
      Market rate interest adjustment
     (609 )     (605 )     (597 )     (585 )     (592 )     (2,396 )     (2,330 )
      2nd generation tenant allowances
     (4,247 )     (3,268 )     (5,314 )     (6,047 )     (3,351 )     (18,876 )     (9,545 )
      Capital improvements
     (3,076 )     (579 )     (2,188 )     (1,880 )     (3,041 )     (7,723 )     (11,289 )
Funds available for distribution
   $ 19,179     $ 20,063     $ 14,524     $ 13,046     $ 16,740     $ 66,812     $ 61,649  
Funds available for distribution
   per share
   $ .51     $ .54     $ .39     $ .35     $ .45     $ 1.77     $ 1.66  
Dividends paid per share
   $ .36     $ .36     $ .36     $ .34     $ .34     $ 1.42     $ 1.3425  
                                                         
FFO payout ratio
     51 %     56 %     61 %     60 %     54 %     57 %     60 %
FAD payout ratio
     71 %     67 %     92 %     97 %     76 %     80 %     81 %
Diluted weighted average common shs.
     37,792       37,467       37,614       37,616       37,447       37,735       37,148  


 
12
 


Unconsolidated Joint Venture Information – All
Summary Balance Sheets (dollars in thousands)
 
 
 
12/31/07
 
 
9/30/07
 
 
6/30/07
 
 
3/31/07
 
 
12/31/06
  
 
Tanger’s Share as of 12/31/07
Assets
              
   Investment properties at cost – net
$71,022
$72,200
$73,272
$74,017
$74,253
  
$35,512
   Construction in progress
103,568
81,638
55,487
44,049
38,449
  
34,523
   Cash and cash equivalents
2,282
4,109
4,899
3,260
6,539
  
1,060
   Deferred charges – net
2,092
2,746
2,733
2,294
2,824
  
960
   Other assets
8,425
9,305
8,843
16,663
15,239
  
3,312
Total assets
$187,389
$169,998
$145,234
$140,283
$137,304
  
$75,367
               
Liabilities & Owners’ Equity
              
    Mortgage payable
$148,321
$128,886
$112,292
$103,444
$100,138
  
$59,615
    Construction trade payables
13,052
14,128
1,423
1,283
2,734
  
4,428
    Accounts payable & other liabilities
6,377
3,915
1,571
4,696
2,767
  
2,523
Total liabilities
167,750
146,929
115,286
109,423
105,639
  
66,566
Owners’ equity
19,639
23,069
29,948
30,860
31,665
  
8,801
Total liabilities & owners’ equity
$187,389
$169,998
$145,234
$140,283
$137,304
  
$75,367

 
Summary Statements of Operations (dollars in thousands)

 
Three Months Ended
YTD
 
12/07
09/07
06/07
03/07
12/06
12/07
12/06
Revenues
$5,049
$4,949
$4,780
$4,636
$4,434
$19,414
$14,703
Expenses
              
   Property operating
1,891
1,643
1,596
1,764
1,457
6,894
5,415
   General & administrative
29
60
117
42
82
248
213
   Depreciation & amortization
1,354
1,353
1,409
1,357
1,283
5,473
3,781
     Total expenses
3,274
3,056
3,122
3,163
2,822
12,615
9,409
Operating income
1,775
1,893
1,658
1,473
1,612
6,799
5,294
   Interest expense
987
1,025
1,061
1,056
1,060
4,129
2,907
Net income
$788
$868
$597
$417
$552
$2,670
$2,387
Tanger’s share of:
              
       Total revenues less property
       operating and general &
       administrative expenses (“NOI”)
 
 
$1,563
 
 
$1,625
 
 
$1,544
 
 
$1,417
 
 
$1,457
 
 
$6,149
 
 
$4,553
       Net income
$443
$461
$334
$235
$297
$1,473
$1,268
       Depreciation (real estate related)
$626
$651
$680
$654
$623
$2,611
$1,825

 
13
 

Unconsolidated Joint Venture Information – Myrtle Beach Hwy 17
Summary Balance Sheets (dollars in thousands)
 
 
 
12/31/07
 
 
9/30/07
 
 
6/30/07
 
 
3/31/07
 
 
12/31/06
  
 
Tanger’s Share as of 12/31/07
Assets
              
   Investment properties at cost – net
$34,909
$35,541
$36,136
$36,681
$36,476
  
$17,455
   Cash and cash equivalents
1,265
1,501
1,826
1,769
1,941
  
633
   Deferred charges – net
799
896
986
1,034
1,043
  
400
   Other assets
2,229
2,243
2,256
2,151
1,888
  
1,115
Total assets
$39,202
$40,181
$41,204
$41,635
$41,348
  
$19,603
               
Liabilities & Owners’ Equity
              
    Mortgage payable
$35,800
$35,800
$35,800
$35,800
$35,800
  
$17,900
    Construction trade payables
277
426
1,005
1,031
321
  
139
    Accounts payable & other liabilities
1,491
841
319
580
119
  
747
Total liabilities
37,568
37,067
37,124
37,411
36,240
  
18,786
Owners’ equity
1,634
3,114
4,080
4,224
5,108
  
817
Total liabilities & owners’ equity
$39,202
$40,181
$41,204
$41,635
$41,348
  
$19,603

Summary Statements of Operations (dollars in thousands)

 
           Three Months Ended
               YTD
 
12/07
09/07
06/07
03/06
12/06
12/07
12/06
Revenues
$3,033
$3,208
$2,997
$2,767
$2,842
$12,005
$11,491
Expenses
              
   Property operating
1,135
1,174
1,054
1,069
1,050
4,432
4,183
   General & administrative
2
3
22
6
5
33
34
   Depreciation & amortization
751
753
817
807
807
3,128
3,178
     Total expenses
1,888
1,930
1,893
1,882
1,862
7,593
7,395
Operating income
1,145
1,278
1,104
885
980
4,412
4,096
   Interest expense
559
566
555
551
564
2,231
2,284
Net income
$586
$712
$549
$334
$416
$2,181
$1,812
Tanger’s share of:
              
       Total revenues less property
       operating and general &
       administrative expenses (“NOI”)
 
 
$948
 
 
$1,014
 
 
$961
 
 
$846
 
 
$893
 
 
$3,770
 
 
$3,637
       Net income
$334
$371
$289
$181
$216
$1,175
$958
       Depreciation (real estate related)
$335
$361
$394
$390
$395
$1,480
$1,537

 
14
 

Unconsolidated Joint Venture Information – Wisconsin Dells
Summary Balance Sheets (dollars in thousands)
 
 
 
12/31/07
 
 
09/30/07
 
 
06/30/07
 
 
03/31/07
 
 
12/31/06
  
 
Tanger’s Share as of 12/31/07
Assets
              
   Investment properties at cost - net
$36,113
$36,659
$37,136
$37,336
$37,777
  
$18,057
   Cash and cash equivalents
525
396
720
2
681
  
263
   Deferred charges – net
771
836
898
959
1,011
  
386
   Other assets
792
506
494
8,034
7,463
  
396
Total assets
$38,201
$38,397
$39,248
$46,331
$46,932
  
$19,102
               
Liabilities & Owners’ Equity
              
    Mortgage payable
$25,250
$25,250
$25,250
$28,894
$28,894
  
$12,625
    Construction trade payables
186
206
418
252
2,413
  
93
    Accounts payable & other liabilities
874
517
607
3,922
2,454
  
438
Total liabilities
26,310
25,973
26,275
33,068
33,761
  
13,156
Owners’ equity
11,891
12,424
12,973
13,263
13,171
  
5,946
Total liabilities & owners’ equity
$38,201
$38,397
$39,248
$46,331
$46,932
  
$19,102
 

 
Summary Statements of Operations (dollars in thousands)

 
                     Three Months Ended
             YTD
 
12/07
09/07
06/07
03/07
12/06
12/07
12/06
Revenues
$1,977
$1,704
$1,777
$1,856
$1,573
$7,314
$3,144
Expenses
              
   Property operating
756
469
542
695
407
2,462
1,232
   General & administrative
3
5
26
10
7
44
19
   Depreciation & amortization
603
600
592
550
476
2,345
603
     Total expenses
1,362
1,074
1,160
1,255
890
4,851
1,854
Operating income
615
630
617
601
683
2,463
1,290
   Interest expense
428
459
506
505
496
1,898
623
Net income
$187
$171
$111
$96
$187
$565
$   667
Tanger’s share of:
              
       Total revenues less property
       operating and general &
       administrative expenses (“NOI”)
 
 
$609
 
 
$614
 
 
$605
 
 
$576
 
 
$580
 
 
$2,404
 
 
$   947
       Net income
$105
$95
$67
$58
$105
$325
$   348
       Depreciation (real estate related)
      $291
      $290
      $285
      $265
      $228
    $1,131
 $   288

 
15
 

Unconsolidated Joint Venture Information – Deer Park
Summary Balance Sheets (dollars in thousands)
 
 
 
12/31/07
 
 
09/30/07
 
 
06/30/07
 
 
3/31/07
 
 
12/31/06
  
 
Tanger’s Share as of 12/31/07
Assets
              
   Construction in progress
$103,568
$81,638
$55,487
$44,049
$38,449
  
$34,523
   Cash and cash equivalents
492
2,212
2,353
1,489
3,917
  
164
   Deferred charges – net
522
1,014
849
301
770
  
174
   Other assets
5,404
6,556
6,093
6,478
5,888
  
1,801
Total assets
$109,986
$91,420
$64,782
$52,317
$49,024
  
 $36,662
               
Liabilities & Owners’ Equity
              
    Mortgage payable
$87,271
$67,836
$51,242
$38,750
$35,444
  
$29,090
    Construction trade payables
12,589
13,496
--
--
--
  
4,196
    Accounts payable & other liabilities
4,012
2,557
645
194
194
  
1,338
Total liabilities
103,872
83,889
51,887
38,944
35,638
  
34,624
Owners’ equity
6,114
7,531
12,895
13,373
13,386
  
2,038
Total liabilities & owners’ equity
$109,986
$91,420
$64,782
$52,317
$49,024
  
$36,662
 

 
Summary Statements of Operations (dollars in thousands)

 
                   Three Months Ended
             YTD
 
12/07
09/07
06/07
03/07
12/06
12/07
12/06
Revenues
$39
$37
$6
$13
$19
$95
$  68
Expenses
              
   Property operating
--
--
--
--
--
--
--
   General & administrative
24
52
69
26
70
171
160
   Depreciation & amortization
--
--
--
--
--
--
--
     Total expenses
24
52
69
26
70
171
160
Operating income
15
(15)
(63)
(13)
(51)
(76)
(92)
   Interest expense
--
--
--
--
--
--
--
Net income (loss)
$15
$(15)
$(63)
$(13)
$(51)
$(76)
$ (92)
Tanger’s share of:
              
       Total revenues less property
       operating and general &
       administrative expenses (“NOI”)
 
 
$  5
 
 
$(5)
 
 
$(21)
 
 
$(4)
 
 
$(17)
 
 
$(25)
 
 
$(31)
       Net income (loss)
$  5
$(5)
$(21)
$(4)
$(17)
$(25)
$(31)
       Depreciation (real estate related)
          $ --
       $  --
       $    --
         $  --
       $    --
       $    --
$    --

 
16
 

Debt Outstanding Summary (dollars in thousands)



As of December 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
 
 
 
 
$172,678
 
 
 
 
6.590%
 
 
 
 
07/10/08  (1)
 
   Net debt premium, COROC Holdings, LLC (2)
 
1,046
    
Total mortgage debt
173,724
    
       
Unsecured debt
      
   Unsecured credit facilities
33,880
Libor + 0.75%
06/30/11
   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
(759)
    
Total unsecured debt
532,621
    
Total debt
$706,345
    
 
Senior Unsecured Notes Financial Covenants (3)

As of December 31, 2007
 
Required
Actual
Compliance
Total Consolidated Debt to Adjusted Total Assets
60%
  50%
Yes
Total Secured Debt to Adjusted Total Assets
40%
  12%
Yes
Total Unencumbered Assets to Unsecured Debt
135%
147%
Yes
Consolidated Income Available for Debt Service to Annual Debt Service Charge
2.00
3.49
Yes

(1)  
Payable on 07/14/08 without penalty at the company’s option.  Interest rate resets to 8.59% subsequent to 07/14/08.  The company can repay the loan in full any time after 07/14/08 with a final maturity date of 07/10/28.
(2)  
Represents a net premium on mortgage debt related to the Charter Oak acquisition.
(3)  
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 December 31, 2007
 
 
Year
Scheduled  
Amortization
Payments  
 
Balloon  
Payments
Total   
Scheduled
Payments
2008
$2,328
$270,350
$       272,678
2009
--
--
--
2010
--
--
--
2011
--
33,880
33,880
2012
--
--
--
2013
--
--
--
2014
--
--
--
2015
--
250,000
250,000
2016
--
--
--
2017 & thereafter
--
149,500 (1)
149,500
 
$2,328
$703,730
$706,058
   Net Premium on Debt
  
287
     
$706,345

 


(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.


 

 
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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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