-----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, QFjJMGhZUp/UQWHHzIC2vZetLdcD4er03opb+Gq+lWVADunOJxmHkBv1mNZaOWNI lt3Q6wGhFjFldnFjD1c/lQ== 0000899715-08-000055.txt : 20080430 0000899715-08-000055.hdr.sgml : 20080430 20080430161524 ACCESSION NUMBER: 0000899715-08-000055 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20080331 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080430 DATE AS OF CHANGE: 20080430 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: 08790066 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 tfoc8k03312008.htm TFOC 8-K tfoc8k03312008.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):  April 30, 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 April 30, 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 March 31, 2008.  A copy of the Company’s press release is furnished as Exhibit 99.1 to this report on Form 8-K.  The information contained in this report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specified otherwise.
 
Item 7.01                      Regulation FD Disclosure
 
On April 30, 2008, the Company made publicly available certain supplemental operating and financial information for the quarter ended March 31, 2008.  This supplemental operating and financial information is attached to this current report as exhibit 99.2.  The information contained in this report on Form 8-K, including Exhibit 99.2, shall not be deemed “filed” with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specified otherwise.
 
Item 9.01                      Financial Statements and Exhibits
 
(c) Exhibits

The following exhibits are included with this Report:

Exhibit 99.1
Press release announcing the results of operations and financial condition of the Company as of and for the quarter ended March 31, 2008.

Exhibit 99.2
Supplemental operating and financial information of the Company as of and for the quarter ended March 31, 2008.


SIGNATURES

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

Dated:  April 30, 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 March 31, 2008.

  99.2  
Supplemental operating and financial information of the Company as of and for the quarter ended March 31, 2008.



EX-99.1 2 tfoc8k03312008ex99-1.htm EXHIBIT 99.1 tfoc8k03312008ex99-1.htm

Tanger Factory Outlet Centers, Inc.

News Release

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

TANGER REPORTS FIRST QUARTER 2008 RESULTS
Funds From Operation Increases 7.0%, Same Center Net Operating Income Up 5.7%

Greensboro, NC, April 30, 2008, Tanger Factory Outlet Centers, Inc. (NYSE:SKT) today reported funds from operations (“FFO”) available to common shareholders, a widely accepted supplemental measure of REIT performance, for the three months ended March 31, 2008 was $22.8 million, or $0.61 per share, as compared to FFO of $21.3 million, or $0.57 per share, for the three months ended March 31, 2007, representing a 7.0% increase in both total FFO and FFO per share.  Net income available to common shareholders for the three months ended March 31, 2008 was $5.6 million, or $0.18 per share, as compared to net income of $1.9 million, or $0.06 per share for the first quarter of 2007.

Net income and FFO per share amounts above are on a diluted basis.  FFO is a supplemental non-GAAP financial measure used as a standard in the real estate industry to measure and compare the operating performance of real estate companies. A complete reconciliation containing adjustments from GAAP net income to FFO is included in this release.
First Quarter Highlights
 
·  
Board of Directors approves 5.6% increase in quarterly common share dividend from $0.36 to $0.38 per share, $1.52 per share annualized, representing the 15th consecutive year of increased dividends
 
·  
5.7% increase in same center net operating income, compared to 3.0% last year
 
·  
239 leases signed, totaling 1,079,200 square feet with respect to re-tenanting and renewal activity, including 59.5% of the square footage scheduled to expire during 2008
 
·  
17.9% increase in average base rental rates on leases renewed during the quarter, compared to 13.3% last year
 
·  
41.7% increase in average base rental rates on released space during the quarter, compared to 37.4% last year
 
·  
95.2% period-end wholly-owned portfolio occupancy rate, compared to 95.1% last year
 
·  
Reported tenant comparable sales for the rolling three months ended March 31, 2008 increased 3.5%
 
·  
$343 per square foot in reported tenant comparable sales for the rolling twelve months ended March 31, 2008
 
·  
32.4% debt-to-total market capitalization ratio, 3.43 times interest coverage ratio compared to 3.18 times last year

Stanley K. Tanger, Chairman of the Board and Chief Executive Officer, commented, “The renewal and releasing spreads achieved last year are reflected in our strong first quarter 2008 same center net operating income increase of 5.7%.  Our relative low cost of occupancy will be a benefit as we work our way through our remaining tenant renewals.”


 
 
 
 

Portfolio Operating Results

During the first quarter of 2008, Tanger executed 239 leases, totaling 1,079,200 square feet throughout its wholly-owned portfolio.  Lease renewals during the first quarter accounted for 800,200 square feet and generated a 17.9% increase in average base rental rates and represented 59.5% of the square feet originally scheduled to expire during 2008.  Average base rental increases on re-tenanted space during the first quarter averaged 41.7% and accounted for the remaining 279,000 square feet.

Same center net operating income increased 5.7% for the first quarter of 2008 compared to 3.0% for the first quarter of 2007.  During the first quarter of 2008, the company recaptured approximately 236,000 square feet of space throughout its wholly-owned portfolio.  This space, which was comprised of 38 different stores operated by six low volume tenants, is in the process of being released.  The company is releasing the majority of this space to higher volume brand name tenants and believes the rental rates achieved on the releasing of this space will be well above the rates which were being paid by the previous tenants.

Reported tenant comparable sales for the rolling three months ended March 31, 2008 increased 3.5%.  Sales for the rolling twelve months ended March 31, 2008 were $343 per square foot.

Investment Activities

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 Washington County center from 308,000 square feet to 370,000 square feet, with leases for approximately 74% of the first phase signed and an additional 8% 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 Washington County 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 feet.  The company has approximately 58% of the space signed and an additional 17% under negotiation or out for signature.  Tanger currently expects the project will be delivered in the second quarter, with stores opening in September and October 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 entered into purchase options on new development sites located in Mebane, North Carolina, Port St. Lucie, Florida, and Irving, Texas.  Tenant interest in these new locations appears to be strong and Tanger is continuing with its predevelopment work.

Financing Activities and Balance Sheet Summary

On April 10, 2008, Tanger announced that its Board of Directors approved a 5.6% increase in the annual dividend on its common shares from $1.44 per share to $1.52 per share. Simultaneously, the Board of Directors declared a quarterly dividend of $0.38 per share for the first quarter ended March 31, 2008. A cash dividend of $0.38 per share will be payable on May 15, 2008 to holders of record on April 30, 2008.  Tanger has increased its dividend each year since becoming a public company in May of 1993.

As of March 31, 2008, Tanger had a total market capitalization of approximately $2.2 billion including $727.8 million of debt outstanding, equating to a 32.4% debt-to-total market capitalization ratio.  As of March 31, 2008, 78.4% of Tanger’s debt was at fixed interest rates and the company had $156.9 million outstanding on its $325.0 million in available unsecured lines of credit.  During the first quarter of 2008, Tanger continued to maintain a strong interest coverage ratio of 3.43 times, compared to 3.18 times during the first quarter of last year.

 
2
 

2008 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 2008, excluding gains or losses on the sale of real estate, will be between $0.93 and $1.01 per share and its FFO 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 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 net income available to common shareholders per share to estimated diluted FFO per share:

For the twelve months ended December 31, 2008:
    
 
Low Range
High Range
Estimated diluted net income per share
$.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

First Quarter Conference Call

Tanger will host a conference call to discuss its first quarter results for analysts, investors and other interested parties on Thursday, May 1, 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 First Quarter Financial Results call.  Alternatively, the call will be web cast by CCBN and can be accessed at Tanger Factory Outlet Centers, Inc.'s web site at http://www.tangeroutlet.com/investorrelations/news/ under the News Releases section.  A telephone replay of the call will be available from May 1, 2008 starting at 12:00 P.M. Eastern Time through May 13, 2008, by dialing 1-800-642-1687 (conference ID # 41077517).  Additionally, an online archive of the broadcast will also be available through May 13, 2008.

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 and operates 29 outlet centers in 21 states coast to coast, totaling approximately 8.4 million square feet of gross leasable area.  Tanger also operates two outlet centers containing approximately 667,000 square feet in which it owns a 50% interest.  Tanger is filing a Form 8-K with the Securities and Exchange Commission that includes a supplemental information package for the quarter ended March 31, 2008. 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, and coverage of the current dividend 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, 2007.

 
3
 

TANGER FACTORY OUTLET CENTERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
   
                               Three Months Ended
  
   
                                 March 31,
  
   
2008
    
2007
  
Revenues
                
 
 Base rentals (a)
  
$
37,232
    
$
35,089
  
 
 Percentage rentals
    
1,178
      
1,467
  
 
 Expense reimbursements
    
17,478
      
15,013
  
 
 Other income
    
1,388
      
1,498
  
     
 Total revenues
    
57,276
      
53,067
  
Expenses
                
 
 Property operating
    
19,219
      
16,913
  
 
 General and administrative
    
5,271
      
4,277
  
 
 Depreciation and amortization
    
15,583
      
18,439
  
     
 Total expenses
    
40,073
      
39,629
  
Operating income
    
17,203
      
13,438
  
 
 Interest expense
    
9,548
      
10,056
  
Income before equity in earnings of unconsolidated
                
 
 joint ventures, minority interest and discontinued operations
    
7,655
      
3,382
  
Equity in earnings of unconsolidated joint ventures (b)
    
394
      
235
  
Minority interest in operating partnership
    
(1,088
)
    
(364
)
Income from continuing operations
    
6,961
      
3,253
  
Discontinued operations, net of minority interest (c)
    
---
      
28
  
Net income
    
6,961
      
3,281
  
Preferred share dividends
    
(1,406
)
    
(1,406
)
Net income available to common shareholders
  
$
5,555
    
$
1,875
  
                   
Basic earnings per common share:
                
 
 Income from continuing operations
  
$
.18
    
$
.06
  
 
 Net income
    
.18
      
.06
  
             
Diluted earnings per common share:
                
 
 Income from continuing operations
  
$
.18
    
$
.06
  
 
 Net income
    
.18
      
.06
  
                 
Summary of discontinued operations:
                
Operating income from discontinued operations
  
$
---
    
$
34
  
Gain on sale of real estate
    
---
      
---
  
Income from discontinued operations
    
---
      
34
  
Minority interest in discontinued operations
    
---
      
(6
)
Discontinued operations, net of minority interest
  
$
---
    
$
28
  
(a)  
Includes straight-line rent and market rent adjustments of $683 and $1,081 for the three months ended March 31, 2008 and 2007, respectively.
(b)  
Includes Myrtle Beach, South Carolina Hwy 17 and Wisconsin Dells, Wisconsin properties which are operated by us through 50% ownership joint ventures.
(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 in which we have no significant continuing involvement have been reported above as discontinued operations for the periods presented.



 
4
 


TANGER FACTORY OUTLET CENTERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(Unaudited)
                       
   
March 31,
    
December 31,
  
   
2008     
   
2007       
 
 ASSETS:
                
 
Rental property
                
 
Land
  
$
130,077
    
$
130,075
  
 
Building, improvement and fixtures
    
1,127,956
      
1,104,459
  
 
Construction in progress
    
53,036
      
52,603
  
     
1,311,069
      
1,287,137
  
 
Accumulated depreciation
    
(323,520
)
    
(312,638
)
 
Rental property, net
    
987,549
      
974,499
  
 
Cash and cash equivalents
    
2,302
      
2,412
  
 
Investments in unconsolidated joint ventures
    
9,193
      
10,695
  
 
Deferred charges, net
    
42,302
      
44,804
  
 
Other assets
    
31,698
      
27,870
  
 
Total assets
  
$
1,073,044
    
$
1,060,280
  
             
 LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS’ EQUITY
 Liabilities
                
   
Debt
                
 
Senior, unsecured notes (net of discount of $740 and $759, respectively)
$
398,760
    
$
498,741
  
 
Mortgages payable (including a debt premium
                
   
of $438 and $1,046, respectively)
    
172,121
      
173,724
  
 
 Unsecured lines of credit
    
156,900
      
33,880
  
   
Total debt
    
727,781
      
706,345
  
 
Construction trade payables
    
23,780
      
23,813
  
 
Accounts payable and accrued expenses
    
54,203
      
47,185
  
     
Total liabilities
    
805,764
      
777,343
  
             
Commitments
                
Minority interest in operating partnership
    
31,019
      
33,733
  
             
Shareholders’ equity
                
 
Preferred shares, 7.5% Class C, liquidation preference $25 per share,
                
   
8,000,000 shares authorized, 3,000,000 shares issued and
                
   
outstanding at March 31, 2008 and December 31, 2007
    
75,000
      
75,000
  
 
Common shares, $.01 par value, 150,000,000 shares authorized,
               
   
31,539,041 and 31,329,241 shares issued and outstanding at
                
   
March 31, 2008 and December 31, 2007, respectively
    
315
      
313
  
 
Paid in capital
    
353,237
      
351,817
  
 
Distributions in excess of net income 
    
(177,353
)
    
(171,625
)
 
Accumulated other comprehensive loss
    
(14,938
)
    
(6,301
)
     
Total shareholders’ equity
    
236,261
      
249,204
  
       
Total liabilities, minority interest, and shareholders’ equity
  
$
1,073,044
    
$
1,060,280
  
             


 
5
 


TANGER FACTORY OUTLET CENTERS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(in thousands, except per share, state and center information)
(Unaudited)
   
                               Three Months Ended
  
   
                                March 31,
  
   
2008      
 
2007       
 
               
 FUNDS FROM OPERATIONS (a)
                
 
Net income
  
$
6,961
    
$
3,281
  
 
Adjusted for:
                
   
Minority interest in operating partnership
    
1,088
      
364
  
   
Minority interest, depreciation and amortization
                
     
attributable to discontinued operations
    
       ---
    
54                 
  
   
Depreciation and amortization uniquely significant to
                  
     
real estate – wholly-owned
    
   15,508
    
18,364                                 
 
   
Depreciation and amortization uniquely significant to
                  
     
real estate – unconsolidated joint ventures
    
       652
    
654                    
  
 
Funds from operations (FFO)
    
24,209
      
22,717
  
 
Preferred share dividends
    
(1,406
)
    
(1,406
)
 
Funds from operations available to common shareholders
  
$
22,803
    
$
21,311
  
 
Funds from operations available to common shareholders
                  
   
per share – diluted
  
$
.61
    
$
.57
  
               
 WEIGHTED AVERAGE SHARES
              
 
Basic weighted average common shares
    
30,979
      
30,743
  
 
Effect of exchangeable notes
    
92
      
421
  
 
Effect of outstanding options
    
169
      
248
  
 
Effect of unvested restricted share awards
    
96       
 
  137       
 
 
Diluted weighted average common shares
                  
   
(for earnings per share computations)
    
31,336
      
31,549
  
 
Convertible operating partnership units (b)
    
6,067
      
6,067
  
 
 Diluted weighted average common shares
                
   
(for funds from operations per share computations)
    
37,403
      
37,616
  
                 
OTHER INFORMATION
                
Gross leasable area open at end of period - 
              
 
Wholly owned
    
8,434
      
8,372
  
 
Partially owned – unconsolidated
  
    667
   667         
 
Managed
    
---
      
229
  
                   
Outlet centers in operation -
                
 
Wholly owned
    
29
      
30
  
 
Partially owned – unconsolidated
    
2
      
2
  
 
Managed
    
---
      
2
  
                 
States operated in at end of period (c)
    
21
      
21
  
Occupancy at end of period (c) (d)
    
95.2
%
    
95.1
%


 
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.
 
(d) Excludes our wholly-owned, non-stabilized center in Charleston, South Carolina for the 2007 period.
 

7


 EX-99.2 3 tfoc8k03312008ex99-2.htm EXHIBIT 99.2 tfoc8k03312008ex99-2.htm


 


Tanger Factory Outlet Centers, Inc.


Supplemental Operating and Financial Data

March 31, 2008







 
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, 2007.

This Supplemental Operating and Financial Data is not an offer to sell or a solicitation to buy any securities of the Company.  Any offers to sell or solicitations to buy any securities of the Company shall be made only by means of a prospectus.



 
2
 

Table of Contents


Section

Portfolio Data:

 
Geographic Diversification
      
4
 
Property Summary – Occupancy at End of Each Period Shown (1)
      
5
 
Portfolio Occupancy at the End of Each Period (1)
      
6
 
Major Tenants (1)
      
7
 
Lease Expirations as of March 31, 2008
      
8
 
Leasing Activity (1)
      
9


Financial Data:

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



 
3
 

Geographic Diversification


As of March 31, 2008
 
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
557,215
7%
Michigan
2
436,751
5%
Tennessee
1
419,038
5%
Missouri
1
302,992
4%
Utah
1
300,891
4%
Connecticut
1
291,051
3%
Louisiana
1
282,326
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
152,800
2%
Maine
2
84,313
1%
Total (1)
29
8,434,499
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

Wholly-owned properties
 
 
Location
 
Total GLA
3/31/08
%
Occupied
3/31/08
%
Occupied
12/31/07
%
Occupied
9/30/07
%
Occupied
6/30/07
%
Occupied
3/31/07
Riverhead, NY
729,315
94%
100%
98%
99%
97%
Rehoboth, DE
568,926
97%
99%
98%
99%
98%
Foley, AL
557,215
94%
97%
99%
98%
96%
San Marcos, TX
442,510
96%
99%
99%
99%
98%
Myrtle Beach Hwy 501, SC
426,417
94%
94%
96%
97%
94%
Sevierville, TN
419,038
99%
100%
99%
99%
98%
Hilton Head, SC
393,094
87%
89%
87%
88%
85%
Charleston, SC
352,315
94%
95%
94%
93%
90%
Commerce II, GA
347,025
98%
100%
98%
96%
94%
Howell, MI
324,631
93%
100%
99%
99%
99%
Branson, MO
302,992
93%
100%
100%
100%
98%
Park City, UT
300,891
93%
100%
100%
100%
99%
Locust Grove, GA
293,868
96%
99%
100%
95%
94%
Westbrook, CT
291,051
98%
100%
99%
94%
93%
Gonzales, LA
282,326
99%
100%
100%
100%
98%
Williamsburg, IA
277,230
99%
99%
99%
98%
95%
Lincoln City, OR
270,280
98%
100%
99%
96%
99%
Tuscola, IL
256,514
84%
80%
77%
72%
69%
Lancaster, PA
255,152
100%
100%
100%
99%
99%
Tilton, NH
245,563
100%
100%
100%
99%
96%
Fort Myers, FL
198,950
98%
94%
96%
96%
97%
Commerce I, GA
185,750
76%
91%
90%
90%
90%
Terrell, TX
177,800
100%
100%
100%
100%
98%
Barstow, CA
152,800
100%
97%
100%
100%
100%
West Branch, MI
112,120
100%
100%
100%
100%
87%
Blowing Rock, NC
104,235
98%
100%
98%
99%
97%
Nags Head, NC
82,178
100%
100%
100%
100%
100%
Kittery I, ME
59,694
100%
100%
95%
100%
100%
Kittery II, ME
24,619
94%
94%
94%
94%
94%
Boaz, AL
n/a
n/a
n/a
98%
96%
92%
Total
8,434,499
   95%
   98%
   97% (1)
   97% (1)
   95% (1)

Unconsolidated joint ventures
Myrtle Beach Hwy 17, SC
402,013
100%
100%
99%
100%
98%
Wisconsin Dells, WI
264,929
100%
100%
100%
100%
100%




(1)  
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)


03/08  12/07    09/07(2)    06/07(2)    03/07(2)    12/06(2)    09/06(2)    06/06    03/06
95%        98%               97%          97%          95%                   98%                    96%                 96%             95%




 

 






(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 March 31, 2008
 
Tenant
# of   
Stores
 
GLA
% of     
Total GLA
The Gap, Inc.
64
684,194
8.1%
Phillips-Van Heusen
92
430,763
5.1%
Nike
22
283,870
3.4%
Liz Claiborne
37
274,978
3.3%
VF Factory Outlet
30
273,286
3.2%
Adidas
32
265,676
3.1%
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
66
185,129
2.2%
Total of All Listed Above
444
3,037,197
36.0%

 

(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 March 31, 2008

 

Percentage of Total Gross Leasable Area (1)

 
 2008     2009    2010    2011    2012    2013    2014    2015    2016    2017    2018+
5.00%          18.00%       17.00%      19.00%   17.00%   12.00%      2.00%         2.00%          2.00%         3.00%          3.00%




Percentage of Total Annualized Base Rent (1)
 

 2008     2009    2010    2011    2012    2013    2014    2015    2016    2017    2018+
5.00%          16.00%       18.00%      17.00%   17.00%   13.00%      2.00%         2.00%          2.00%         4.00%          4.00%

 


(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)
   
 
03/31/08
  
 
 
06/30/08
 
 
09/30/08
 
 
12/31/08
  
Year to
Date
    
Prior
Year
to Date
  
Re-tenanted Space:
                        
    Number of leases
     73             73       89  
    Gross leasable area
     279,014             279,014       321,288  
    New initial base rent per square foot
   $ 23.03           $ 23.03     $ 21.54  
    Prior expiring base rent per square foot
   $ 17.67           $ 17.67     $ 16.57  
    Percent increase
     30.4 %           30.4 %     30.0 %
                               
    New straight line base rent per square foot
   $ 24.41           $ 24.41     $ 22.51  
    Prior straight line base rent per square foot
   $ 17.23           $ 17.23     $ 16.39  
    Percent increase
     41.7 %           41.7 %     37.4 %
                               
Renewed Space:
                              
    Number of leases
     166             166       156  
    Gross leasable area
     800,197             800,197       733,856  
    New initial base rent per square foot
   $ 19.37           $ 19.37     $ 18.32  
    Prior expiring base rent per square foot
   $ 16.94           $ 16.94     $ 16.73  
    Percent increase
     14.3 %           14.3 %     9.5 %
                               
   New straight line base rent per square foot
   $ 20.04           $ 20.04     $ 18.71  
    Prior straight line base rent per square foot
   $ 16.99           $ 16.99     $ 16.52  
    Percent increase
     17.9 %           17.9 %     13.3 %
                               
Total Re-tenanted and Renewed Space:
                              
    Number of leases
     239             239       245  
    Gross leasable area
     1,079,211             1,079,211       1,055,144  
    New initial base rent per square foot
   $ 20.32           $ 20.32     $ 19.30  
    Prior expiring base rent per square foot
   $ 17.13           $ 17.13     $ 16.68  
    Percent increase
     18.6 %           18.6 %     15.7 %
                               
    New straight line base rent per square foot
   $ 21.17           $ 21.17     $ 19.86  
    Prior straight line base rent per square foot
   $ 17.05           $ 17.05     $ 16.48  
    Percent increase
     24.1 %           24.1 %     20.6 %

(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)
 
  
 
 
                        3/31/08
                     2/31/07
                        9/30/07
                        6/30/07
          3/31/07
Assets
          
   Rental property
                        
       Land
   $ 130,077     $ 130,075     $ 129,921     $ 130,138     $ 130,137  
       Buildings
     1,127,956       1,104,459       1,074,310       1,074,260       1,071,691  
       Construction in progress
     53,036       52,603       61,364       39,728       23,944  
   Total rental property
     1,311,069       1,287,137       1,265,595       1,244,126       1,225,772  
       Accumulated depreciation
     (323,520 )     (312,638 )     (302,411 )     (296,319 )     (287,720 )
   Total rental property – net
     987,549       974,499       963,184       947,807       938,052  
   Cash & cash equivalents
     2,302       2,412       2,434       1,223       3,273  
   Assets held for sale
     --       --       2,052       --       --  
   Investments in unconsolidated jointventures
     9,193       10,695       11,908       14,324       14,052  
   Deferred charges – net
     42,302       44,804       47,306       49,795       52,312  
   Other assets
     31,698       27,870       26,563       28,904       21,149  
Total assets
   $ 1,073,044     $ 1,060,280     $ 1,053,447     $ 1,042,053     $ 1,028,838  
Liabilities, minority interest & shareholders’ equity
                                  
  Liabilities
                                        
    Debt
                                        
       Senior, unsecured notes, net of discount
   $ 398,760     $ 498,741     $ 498,722     $ 498,704     $ 498,685  
       Mortgages payable, including premium
     172,121       173,724       175,312       176,850       178,363  
       Unsecured lines of credit
     156,900       33,880       23,300       7,900       --  
    Total debt
     727,781       706,345       697,334       683,454       677,048  
    Construction trade payables
     23,780       23,813       27,943       27,840       22,266  
    Accounts payable & accruals
     54,203       47,185       35,237       26,656       25,680  
  Total liabilities
     805,764       777,343       760,514       737,950       724,994  
  Minority interest in operating partnership
     31,019       33,733       35,366       37,191       37,193  
  Shareholders’ equity
                                        
    Preferred shares
     75,000       75,000       75,000       75,000       75,000  
    Common shares
     315       313       313       313       313  
    Paid in capital
     353,237       351,817       350,701       349,599       347,933  
    Distributions in excess of net income
     (177,353 )     (171,625 )     (169,419 )     (165,139 )     (158,902 )
    Accum. other comprehensive income (loss)
     (14,938 )     (6,301 )     972       7,139       2,307  
  Total shareholders’ equity
     236,261       249,204       257,567       266,912       266,651  
Total liabilities, minority interest & shareholders’ equity
   $ 1,073,044     $ 1,060,280     $ 1,053,447     $ 1,042,053     $ 1,028,838  
 
10

Consolidated Statements of Operations (dollars and shares in thousands)

 
Three Months Ended
YTD
 
03/08
12/07
09/07
06/07
03/07
03/08
03/07
Revenues
              
   Base rentals
  $    37,232
  $    38,210
  $    37,207
  $    36,318
  $    35,089
  $    37,232
  $    35,089
   Percentage rentals
          1,178
          3,323
          2,305
          1,662
          1,467
          1,178
          1,467
   Expense reimbursements
        17,478
        18,482
        16,719
        15,764
        15,013
        17,478
        15,013
   Other income
          1,388
          1,963
          2,155
          1,590
          1,498
          1,388
          1,498
      Total revenues
        57,276
        61,978
        58,386
        55,334
        53,067
        57,276
        53,067
Expenses
              
   Property operating
        19,219
        20,490
        19,158
        17,822
        16,913
        19,219
        16,913
   General & administrative
          5,271
          4,911
          4,916
          4,903
          4,277
          5,271
          4,277
   Depreciation & amortization
        15,583
        14,940
        14,941
        15,490
        18,439
        15,583
        18,439
      Total expenses
        40,073
        40,341
        39,015
        38,215
        39,629
        40,073
        39,629
Operating income
        17,203
        21,637
        19,371
        17,119
        13,438
        17,203
        13,438
   Interest expense
     9,548
     9,851
      10,087
      10,072
      10,056
     9,548
      10,056
Income before equity in earnings of
   unconsolidated joint ventures, minority
   interest and discontinued operations
 
 
          7,655
 
 
        11,786
 
 
          9,284
 
 
          7,047
 
 
          3,382
 
 
         7,655
 
 
          3,382
Equity in earnings of unconsolidated
   joint ventures
 
             394
 
             443
 
              461
 
            334
 
            235
 
            394
 
            235
Minority interest in operating partnership
         (1,088)
         (1,778)
         (1,370)
           (982)
           (364)
        (1,088)
           (364)
Income from continuing operations
           6,961
        10,451
          8,375
          6,399
          3,253
          6,961
          3,253
Discontinued operations (1)
               ---
               22
               22
               26
               28
              ---
               28
Net income
          6,961
        10,473
          8,397
          6,425
          3,281
          6,961
          3,281
Less applicable preferred share dividends
        (1,406)
       (1,406)
        (1,406)
        (1,407)
        (1,406)
        (1,406)
        (1,406)
Net income available to common
   shareholders
 
$       5,555
 
$      9,067
 
$      6,991
 
$      5,018
 
$        1,875
 
$        5,555
 
$        1,875
Basic earnings per common share:
              
   Income from continuing operations
$        .18
$        .29
$        .23
$        .16
$           .06
$        .18
$           .06
   Net income
$        .18
$        .29
$        .23
$        .16
$           .06
$        .18
$           .06
Diluted earnings per common share:
              
   Income from continuing operations
$        .18
$        .29
$        .22
$        .16
$          .06
$        .18
$          .06
   Net income
$        .18
$        .29
$        .22
$        .16
$          .06
$        .18
$          .06
Weighted average common shares:
              
   Basic
      30,979
      30,867
      30,847
      30,824
       30,743
      30,979
       30,743
   Diluted
      31,336
      31,725
      31,400
      31,547
       31,549
      31,336
       31,549
 

(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
 
 03/08
12/07
09/07
06/07
03/07
03/08
03/07
Funds from operations:
              
   Net income
$     6,961
$   10,473
$    8,397
$    6,425
$    3,281
$    6,961
$    3,281
   Adjusted for -
              
      Minority interest in operating
        partnership
 
      1,088
 
      1,778
 
      1,370
 
         982
 
         364
 
      1,088
 
         364
      Minority interest, depreciation
        and amortization in
        discontinued operations
 
 
            --
 
 
            5
 
 
          52
 
 
           54
 
 
           54
 
 
           --
 
 
           54
      Depreciation and amortization
        uniquely significant to real estate –
       wholly owned
 
 
    15,508
 
 
    14,865
 
 
    14,865
 
 
    15,412
 
 
    18,364
 
 
    15,508
 
 
    18,364
      Depreciation and amortization
        uniquely significant to real estate –
        joint ventures
 
 
         652
 
 
         626
 
 
         651
 
 
         680
 
 
         654
 
 
         652
 
 
         654
      (Gain) on sale of real estate
           --
           (6)
            --
            --
            --
           --
            --
      Preferred share dividends
     (1,406)
    (1,406)
     (1,406)
     (1,407)
     (1,406)
     (1,406)
     (1,406)
Funds from operations
$  22,803
$  26,335
$  23,929
$  22,146
$  21,311
$  22,803
$  21,311
               
Funds from operations per share
        $.61
        $.70
       $.64
        $.59
        $.57
        $.61
        $.57
Funds available for distribution:
              
   Funds from operations
$  22,803
$  26,335
$  23,929
$  22,146
$  21,311
$  22,803
$  21,311
   Adjusted For -
              
      Corporate depreciation
          excluded above
 
           75
 
           75
 
          76
 
           78
 
           75
 
           75
 
          75
      Amortization of finance costs
         379
         430
        473
         417
         418
         379
        418
      Amortization of share compensation
      1,224
      1,103
      1,067
      1,057
         832
      1,224
         832
      Straight line rent adjustment
       (789)
       (562)
       (753)
       (839)
       (714)
        (789)
       (714)
      Market rent adjustment
        105
       (270)
       (277)
       (236)
       (364)
         105
       (364)
      Market rate interest adjustment
       (608)
       (609)
       (605)
       (597)
       (585)
        (608)
       (585)
      2nd generation tenant allowances
    (4,177)
    (4,247)
    (3,268)
    (5,314)
    (6,047)
     (4,177)
    (6,047)
      Capital improvements
    (2,549)
    (3,076)
       (579)
    (2,188)
    (1,880)
     (2,549)
    (1,880)
Funds available for distribution
 $ 16,463
 $ 19,179
 $ 20,063
 $ 14,524
 $ 13,046
 $ 16,463
 $ 13,046
Funds available for distribution
   per share
 
    $  .44
 
        $.51
 
       $.54
 
       $.39
 
       $.35
 
        $.44
 
       $.35
Dividends paid per share
    $  .36
        $.36
       $.36
       $.36
       $.34
        $.36
       $.34
               
FFO payout ratio
         59%
  51%
          56%
          61%
          60%
           59%
          60%
FAD payout ratio
         82%
  71%
          67%
          92%
          97%
           82%
          97%
Diluted weighted average common shs.
   37,403
       7,792
   37,467
   37,614
   37,616
    37,403
   37,616


 
12
 

Unconsolidated Joint Venture Information – All
Summary Balance Sheets (dollars in thousands)
 
 
 
3/31/08
 
 
12/31/07
 
 
9/30/07
 
 
6/30/07
 
 
3/31/07
  
Tanger’s  
Share as of
3/31/08  
Assets
              
   Investment properties at cost – net
$70,541
$71,022
$72,200
$73,272
$74,017
  
$35,271
   Construction in progress
134,756
103,568
81,638
55,487
44,049
  
44,919
   Cash and cash equivalents
2,708
2,282
4,109
4,899
3,260
  
1,122
   Deferred charges – net
2,157
2,092
2,746
2,733
2,294
  
957
   Other assets
8,613
8,425
9,305
8,843
16,663
  
3,392
Total assets
$218,775
$187,389
$169,998
$145,234
$140,283
  
$85,661
               
Liabilities & Owners’ Equity
              
    Mortgage payable
$173,249
$148,321
$128,886
$112,292
$103,444
  
$67,925
    Construction trade payables
20,736
13,052
14,128
1,423
1,283
  
7,060
    Accounts payable & other liabilities
9,281
6,377
3,915
1,571
4,696
  
3,572
Total liabilities
203,266
167,750
146,929
115,286
109,423
  
78,557
Owners’ equity
15,509
19,639
23,069
29,948
30,860
  
7,104
Total liabilities & owners’ equity
$218,775
$187,389
$169,998
$145,234
$140,283
  
$85,661

Summary Statements of Operations (dollars in thousands)

 
Three Months Ended
YTD
 
03/08
12/07
09/07
06/07
03/07
03/08
03/07
Revenues
$4,757
$5,049
$4,949
$4,780
$4,636
$4,757
$4,636
Expenses
              
   Property operating
1,802
1,891
1,643
1,596
1,764
1,802
1,764
   General & administrative
19
29
60
117
42
19
42
   Depreciation & amortization
1,345
1,354
1,353
1,409
1,357
1,345
1,357
     Total expenses
3,166
3,274
3,056
3,122
3,163
3,166
3,163
Operating income
1,591
1,775
1,893
1,658
1,473
1,591
1,473
   Interest expense
840
987
1,025
1,061
1,056
840
1,056
Net income
$751
$788
$868
$597
$417
$751
$417
Tanger’s share of:
              
       Total revenues less property
       operating and general &
       administrative expenses (“NOI”)
 
 
$1,466
 
 
$1,563
 
 
$1,625
 
 
$1,544
 
 
$1,417
 
 
$1,466
 
 
$1,417
       Net income
$394
$443
$461
$334
$235
$394
$235
       Depreciation (real estate related)
$652
$626
$651
$680
$654
$652
$654

 
13
 

Unconsolidated Joint Venture Information – Myrtle Beach Hwy 17
Summary Balance Sheets (dollars in thousands)
 
 
 
3/31/08
 
 
12/31/07
 
 
9/30/07
 
 
6/30/07
 
 
3/31/07
  
Tanger’s  
Share as of
3/31/08  
Assets
              
   Investment properties at cost – net
$34,985
$34,909
$35,541
$36,136
$36,681
  
$17,493
   Cash and cash equivalents
1,036
1,265
1,501
1,826
1,769
  
518
   Deferred charges – net
724
799
896
986
1,034
  
362
   Other assets
2,264
2,229
2,243
2,256
2,151
  
1,132
Total assets
$39,009
$39,202
$40,181
$41,204
$41,635
  
$19,505
               
Liabilities & Owners’ Equity
              
    Mortgage payable
$35,800
$35,800
$35,800
$35,800
$35,800
  
$17,900
    Construction trade payables
732
277
426
1,005
1,031
  
366
    Accounts payable & other liabilities
2,272
1,491
841
319
580
  
1,136
Total liabilities
38,804
37,568
37,067
37,124
37,411
  
19,402
Owners’ equity
205
1,634
3,114
4,080
4,224
  
103
Total liabilities & owners’ equity
$39,009
$39,202
$40,181
$41,204
$41,635
  
$19,505

Summary Statements of Operations (dollars in thousands)

 
Three Months Ended
YTD
 
03/08
12/07
09/07
06/07
03/07
03/08
03/07
Revenues
$2,888
$3,033
$3,208
$2,997
$2,767
$2,888
$2,767
Expenses
              
   Property operating
1,090
1,135
1,174
1,054
1,069
1,090
1,069
   General & administrative
7
2
3
22
6
7
6
   Depreciation & amortization
739
751
753
817
807
739
807
     Total expenses
1,836
1,888
1,930
1,893
1,882
1,836
1,882
Operating income
1,052
1,145
1,278
1,104
885
1,052
885
   Interest expense
501
559
566
555
551
501
551
Net income
$551
$586
$712
$549
$334
$551
$334
Tanger’s share of:
              
       Total revenues less property
       operating and general &
       administrative expenses (“NOI”)
 
 
$896
 
 
$948
 
 
$1,014
 
 
$961
 
 
$846
 
 
$896
 
 
$846
       Net income
$285
$334
$371
$289
$181
$285
$181
       Depreciation (real estate related)
$360
$335
$361
$394
$390
$360
$390

 
14
 

Unconsolidated Joint Venture Information – Wisconsin Dells
Summary Balance Sheets (dollars in thousands)
 
 
 
03/31/08
 
 
12/31/07
 
 
09/30/07
 
 
06/30/07
 
 
03/31/07
  
Tanger’s  
Share as of
03/31/08  
Assets
              
   Investment properties at cost - net
$35,556
$36,113
$36,659
$37,136
$37,336
  
$17,778
   Cash and cash equivalents
277
525
396
720
2
  
139
   Deferred charges – net
706
771
836
898
959
  
353
   Other assets
860
792
506
494
8,034
  
430
Total assets
$37,399
$38,201
$38,397
$39,248
$46,331
  
$18,700
               
Liabilities & Owners’ Equity
              
    Mortgage payable
$25,250
$25,250
$25,250
$25,250
$28,894
  
$12,625
    Construction trade payables
158
186
206
418
252
  
79
    Accounts payable & other liabilities
591
874
517
607
3,922
  
296
Total liabilities
25,999
26,310
25,973
26,275
33,068
  
13,000
Owners’ equity
11,400
11,891
12,424
12,973
13,263
  
5,700
Total liabilities & owners’ equity
$37,399
$38,201
$38,397
$39,248
$46,331
  
$18,700

Summary Statements of Operations (dollars in thousands)

 
Three Months Ended
YTD
 
03/08
12/07
09/07
06/07
03/07
03/08
03/07
Revenues
$1,848
$1,977
$1,704
$1,777
$1,856
$1,848
$1,856
Expenses
              
   Property operating
712
756
469
542
695
712
695
   General & administrative
3
3
5
26
10
3
10
   Depreciation & amortization
606
603
600
592
550
606
550
     Total expenses
1,321
1,362
1,074
1,160
1,255
1,321
1,255
Operating income
527
615
630
617
601
527
601
   Interest expense
339
428
459
506
505
339
505
Net income
$188
$187
$171
$111
$96
$188
$96
Tanger’s share of:
              
       Total revenues less property
       operating and general &
       administrative expenses (“NOI”)
 
 
$567
 
 
$609
 
 
$614
 
 
$605
 
 
$576
 
 
$567
 
 
$576
       Net income
$105
$105
$95
$67
$58
$105
$58
       Depreciation (real estate related)
      $292
      $291
      $290
      $285
      $265
    $292
      $265

 
15
 

Unconsolidated Joint Venture Information – Deer Park
Summary Balance Sheets (dollars in thousands)
 
 
 
03/31/08
 
 
12/31/07
 
 
09/30/07
 
 
06/30/07
 
 
3/31/07
  
Tanger’s  
Share as of
03/31/08  
Assets
              
   Construction in progress
$134,756
$103,568
$81,638
$55,487
$44,049
  
$44,919
   Cash and cash equivalents
1,395
492
2,212
2,353
1,489
  
465
   Deferred charges – net
727
522
1,014
849
301
  
242
   Other assets
5,489
5,404
6,556
6,093
6,478
  
1,830
Total assets
$142,367
$109,986
$91,420
$64,782
$52,317
  
 $47,456
               
Liabilities & Owners’ Equity
              
    Mortgage payable
$112,199
$87,271
$67,836
$51,242
$38,750
  
$37,400
    Construction trade payables
19,846
12,589
13,496
--
--
  
6,615
    Accounts payable & other liabilities
6,418
4,012
2,557
645
194
  
2,140
Total liabilities
138,463
103,872
83,889
51,887
38,944
  
46,155
Owners’ equity
3,904
6,114
7,531
12,895
13,373
  
1,301
Total liabilities & owners’ equity
$142,367
$109,986
$91,420
$64,782
$52,317
  
$47,456

Summary Statements of Operations (dollars in thousands)

 
Three Months Ended
YTD
 
03/08
12/07
09/07
06/07
03/07
03/08
03/07
Revenues
$21
$39
$37
$6
$13
$21
$13
Expenses
              
   Property operating
--
--
--
--
--
--
--
   General & administrative
9
24
52
69
26
9
26
   Depreciation & amortization
--
--
--
--
--
--
--
     Total expenses
9
24
52
69
26
9
26
Operating income
12
15
(15)
(63)
(13)
12
(13)
   Interest expense
--
--
--
--
--
--
--
Net income (loss)
$12
$15
$(15)
$(63)
$(13)
$12
$(13)
Tanger’s share of:
              
       Total revenues less property
       operating and general &
       administrative expenses (“NOI”)
 
 
$4
 
 
$5
 
 
$(5)
 
 
$(21)
 
 
$(4)
 
 
$4
 
 
$(4)
       Net income (loss)
$4
$5
$(5)
$(21)
$(4)
$4
$(4)
       Depreciation (real estate related)
          $--
          $ --
       $  --
       $  --
         $--
       $--
         $--

 
16
 

Debt Outstanding Summary (dollars in thousands)

As of March 31, 2008
 
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
 
 
 
 
$171,683
 
 
 
 
6.59%
 
 
 
 
07/10/08  (1)
 
   Net debt premium, COROC Holdings, LLC (2)
 
438
    
Total mortgage debt
172,121
    
       
Unsecured debt
      
   Unsecured credit facilities
156,900
Libor + 0.75%
06/30/11
   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
(740)
    
Total unsecured debt
555,660
    
Total debt
$727,781
    
 
Senior Unsecured Notes Financial Covenants (3)

As of March 31, 2008
 
Required
Actual
Compliance
Total Consolidated Debt to Adjusted Total Assets
60%
  51%
Yes
Total Secured Debt to Adjusted Total Assets
40%
  12%
Yes
Total Unencumbered Assets to Unsecured Debt
135%
145%
Yes
Consolidated Income Available for Debt Service to                      
Annual Debt Service Charge
 
2.00
 
3.54
 
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 on any payment date 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 March 31, 2008
 
 
Year
Scheduled  
Amortization
Payments  
 
Balloon 
Payments
 Total    
Scheduled
Payments
2008
$1,332
$170,351
$       171,683
2009
--
--
--
2010
--
--
--
2011
--
156,900
156,900
2012
--
--
--
2013
--
--
--
2014
--
--
--
2015
--
250,000
250,000
2016
--
--
--
2017 & thereafter
--
149,500 (1)
149,500
 
$1,332
$726,751
$728,083
   Net Discount on Debt
  
(302)
     
$727,781



 
(1) 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

19



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