EX-99.2 3 tfoc8k09302008ex99-2.htm EXHIBIT 99.2 SUPPLEMENTAL tfoc8k09302008ex99-2.htm

 

Tanger Factory Outlet Centers, Inc.


Supplemental Operating and Financial Data

September 30, 2008







 
 
 

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.



 
 
 

Table of Contents


Section

Portfolio Data:

 
Geographic Diversification
      
4
 
Property Summary – Occupancy at End of Each Period Shown
      
5
 
Portfolio Occupancy at the End of Each Period
      
6
 
Major Tenants
      
7
 
Lease Expirations as of September 30, 2008
      
8
 
Leasing Activity
      
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
     



 
 
 

Geographic Diversification


As of September 30, 2008
 
State
 
# of Centers
 
GLA
 
% of GLA
South Carolina
3
1,171,826
13%
Georgia
3
826,643
9%
New York
1
729,315
8%
Pennsylvania
2
625,678
7%
Texas
2
619,806
7%
Delaware
1
568,869
7%
Alabama
1
557,185
6%
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
282,403
3%
Iowa
1
277,230
3%
Oregon
1
270,280
3%
Illinois
1
256,514
3%
New Hampshire
1
245,563
3%
Florida
1
198,950
2%
North Carolina
2
186,413
2%
California
1
171,300
2%
Maine
2
84,313
1%
Total (1)
30
8,823,011
100%
 
 
 
 
(1)  
Excludes one 402,442 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.
 
 
 
Property Summary – Occupancy at End of Each Period Shown

Wholly-owned properties
 
 
Location
 
Total GLA
9/30/08 
%    
Occupied
9/30/08
%    
Occupied
6/30/08
%     
 Occupied
3/31/008
%      
Occupied
12/31/07
 %     
Occupied
9/30/07
Riverhead, NY
729,315
99%
99%
94%
100%
98%
Rehoboth, DE
568,869
100%
99%
97%
99%
98%
Foley, AL
557,185
94%
93%
94%
97%
99%
San Marcos, TX
442,006
99%
97%
96%
99%
99%
Myrtle Beach Hwy 501, SC
426,417
92%
96%
94%
94%
96%
Sevierville, TN
419,038
100%
100%
99%
100%
99%
Hilton Head, SC
393,094
88%
88%
87%
89%
87%
Washington, PA
370,526
86%
n/a
n/a
n/a
n/a
Charleston, SC
352,315
95%
95%
94%
95%
94%
Commerce II, GA
347,025
98%
98%
98%
100%
98%
Howell, MI
324,631
97%
97%
93%
100%
99%
Branson, MO
302,992
100%
98%
93%
100%
100%
Park City, UT
300,891
98%
92%
93%
100%
100%
Locust Grove, GA
293,868
100%
100%
96%
99%
100%
Westbrook, CT
291,051
99%
99%
98%
100%
99%
Gonzales, LA
282,403
100%
100%
99%
100%
100%
Williamsburg, IA
277,230
100%
99%
99%
99%
99%
Lincoln City, OR
270,280
100%
99%
98%
100%
99%
Tuscola, IL
256,514
80%
82%
84%
80%
77%
Lancaster, PA
255,152
100%
98%
100%
100%
100%
Tilton, NH
245,563
100%
100%
100%
100%
100%
Fort Myers, FL
198,950
92%
93%
98%
94%
96%
Commerce I, GA
185,750
72%
72%
76%
91%
90%
Terrell, TX
177,800
100%
100%
100%
100%
100%
Barstow, CA
171,300
100%
99%
100%
97%
100%
West Branch, MI
112,120
100%
100%
100%
100%
100%
Blowing Rock, NC
104,235
100%
100%
98%
100%
98%
Nags Head, NC
82,178
100%
100%
100%
100%
100%
Kittery I, ME
59,694
100%
100%
100%
100%
95%
Kittery II, ME
24,619
100%
100%
94%
94%
94%
Boaz, AL
n/a
n/a
n/a
n/a
n/a
98%
Total
8,823,011
   97% (2)
   96%
   95%
   98%
   97% (1)

Unconsolidated joint ventures
Myrtle Beach Hwy 17, SC
402,442
100%
99%
100%
100%
99%
Wisconsin Dells, WI
264,929
99%
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.
(2)  
Excludes the occupancy rate at our Washington, Pennsylvania center which opened during the third quarter of 2008 and had not yet stabilized.

 
 
 

Portfolio Occupancy at the End of Each Period (1)


09/08(3)       06/08      03/08    12/07      09/07(2)   06/07(2)     03/07(2)  12/06(2)   09/06(2)
  97%    96%      95%     98%    97%    97%    95%    98%      96%







 



(1)  
Excludes one 402,442 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.

(3)  
Excludes the occupancy rate at our Washington, Pennsylvania center which opened during the third quarter of 2008 and had not yet stabilized.

Major Tenants (1)


Ten Largest Tenants As of September 30, 2008
 
Tenant
# of   
Stores
 
GLA
% of     
Total GLA
The Gap, Inc.
68
731,308
8.3%
Phillips-Van Heusen
97
451,111
5.1%
Nike
25
290,105
3.3%
Adidas
33
283,732
3.2%
VF Factory Outlet
31
278,286
3.2%
Liz Claiborne
33
254,210
2.9%
Dress Barn, Inc.
38
251,222
2.8%
Carter’s
46
221,951
2.5%
Jones Retail Corporation
49
194,994
2.2%
Polo Ralph Lauren
22
188,728
2.2%
Total of All Listed Above
442
3,145,647
35.7%





 

 

(1)  
Excludes one 402,442 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.

 
Lease Expirations as of September 30, 2008

 

Percentage of Total Gross Leasable Area (1)


 
 
2008       2009       2010         2011     2012         2013     2014      2015        2016    2017    2018+
1.00%    15.00%     16.00%    18.00%    16.00%     17.00%     4.00%        2.00%     2.00%     3.00%      6.00%



Percentage of Total Annualized Base Rent (1)

 
2008       2009       2010         2011     2012         2013     2014      2015        2016    2017    2018+
1.00%    13.00%     16.00%    16.00%    16.00%     18.00%     4.00%        2.00%     2.00%     4.00%      8.00%






(1)
Excludes one 402,442 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.
 
 
 
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
29
17
  
119
166
    Gross leasable area
279,014
124,254
77,426
  
480,694
598,717
    New initial base rent per square foot
$23.03
$26.20
$26.11
  
$24.35
$21.42
    Prior expiring base rent per square foot
$17.67
$19.13
$19.37
  
$18.32
$16.65
    Percent increase
30.4%
36.9%
34.8%
  
32.9%
28.7%
             
    New straight line base rent per square foot
$24.41
$27.62
$28.04
  
$25.83
$22.46
    Prior straight line base rent per square foot
$17.23
$18.90
$19.08
  
$17.96
$16.33
    Percent increase
41.7%
46.1%
47.0%
  
43.8%
37.6%
             
Renewed Space:
            
    Number of leases
166
50
16
  
232
248
    Gross leasable area
800,197
184,007
55,642
  
1,039,846
1,126,879
    New initial base rent per square foot
$19.37
$20.05
$21.66
  
$19.62
$17.76
    Prior expiring base rent per square foot
$16.94
$17.50
$20.56
  
$17.24
$16.11
    Percent increase
14.3%
14.6%
5.4%
  
13.8%
10.2%
             
   New straight line base rent per square foot
$20.04
$20.57
$21.98
  
$20.24
$18.03
    Prior straight line base rent per square foot
$16.99
$17.17
$20.30
  
$17.20
$15.93
    Percent increase
17.9%
19.8%
8.3%
  
17.6%
13.2%
             
Total Re-tenanted and Renewed Space:
            
    Number of leases
239
79
33
  
351
414
    Gross leasable area
1,079,211
308,261
133,068
  
1,520,540
1,725,596
    New initial base rent per square foot
$20.32
$22.53
$24.25
  
$21.11
$19.03
    Prior expiring base rent per square foot
$17.13
$18.16
$19.87
  
$17.58
$16.30
    Percent increase
18.6%
24.1%
22.1%
  
20.1%
16.8%
             
    New straight line base rent per square foot
$21.17
$23.41
$25.51
  
$22.00
$19.57
    Prior straight line base rent per square foot
$17.05
$17.87
$19.59
  
$17.44
$16.07
    Percent increase
24.1%
31.0%
30.2%
  
26.2%
21.8%

(1)  
Excludes one 402,442 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.
 
 

Consolidated  Balance Sheets (dollars in thousands)
 
 
9/30/08
6/30/08
3/31/08
12/31/07
9/30/07
Assets
          
   Rental property
          
       Land
$135,688
$130,077
$130,077
$130,075
$129,921
       Buildings
1,233,680
1,130,536
1,127,956
1,104,459
1,074,310
       Construction in progress
16,377
90,430
53,036
52,603
61,364
   Total rental property
1,385,745
1,351,043
1,311,069
1,287,137
1,265,595
       Accumulated depreciation
(345,577)
(333,995)
(323,520)
(312,638)
(302,411)
   Total rental property – net
1,040,168
1,017,048
987,549
974,499
963,184
   Cash & cash equivalents
3,753
1,088
2,302
2,412
2,434
   Assets held for sale
--
--
--
--
2,052
   Investments in unconsolidated jointventures
12,145
11,667
9,193
10,695
11,908
   Deferred charges – net
39,854
41,821
42,302
44,804
47,306
   Other assets
28,811
28,097
31,698
27,870
26,563
Total assets
$1,124,731
$1,099,721
$1,073,044
$1,060,280
$1,053,447
Liabilities, minority interest & shareholders’ equity
 
 
 
  Liabilities
 
       
    Debt
        
 
       Senior, unsecured notes, net of discount
$398,799
$398,779
$398,760
$498,741
$498,722
       Unsecured term loan
235,000
235,000
---
---
---
       Mortgages payable, including premium
---
---
172,121
173,724
175,312
       Unsecured lines of credit
      149,500
      128,300
      156,900
      33,880
      23,300
    Total debt
783,299
762,079
727,781
706,345
697,334
    Construction trade payables
22,840
28,393
23,780
23,813
27,943
    Accounts payable & accruals
46,573
34,831
54,203
47,185
35,237
  Total liabilities
852,712
825,303
805,764
777,343
760,514
  Minority interest in operating partnership
       31,678
       32,102
       31,019
       33,733
       35,366
  Shareholders’ equity
 
   
 
 
    Preferred shares
75,000
75,000
75,000
75,000
75,000
    Common shares
317
316
315
313
313
    Paid in capital
357,698
355,733
353,237
351,817
350,701
    Distributions in excess of net income
(192,601)
(189,458)
(177,353)
(171,625)
(169,419)
    Accum. other comprehensive income (loss)
(73)
725
(14,938)
(6,301)
972
  Total shareholders’ equity
240,341
242,316
236,261
249,204
257,567
Total liabilities, minority interest & shareholders’ equity
$1,124,731
$1,099,721
$1,073,044
$1,060,280
$1,053,447
 

Consolidated Statements of Operations (dollars and shares in thousands)

   
Three Months Ended
    
YTD
  
      09/08       06/08       03/08       12/07       09/07       09/08       09/07  
Revenues
                                                        
   Base rentals
   $ 40,519     $ 38,623     $ 37,232     $ 38,210     $ 37,207     $ 116,374     $ 108,614  
   Percentage rentals
     1,811       1,120       1,178       3,323       2,305       4,109       5,434  
   Expense reimbursements
     18,277       15,692       17,478       18,482       16,719       51,447       47,496  
   Other income
     2,166       1,570       1,388       1,963       2,155       5,124       5,243  
      Total revenues
     62,773       57,005       57,276       61,978       58,386       177,054       166,787  
Expenses
                                                        
   Property operating
     20,678       17,525       19,219       20,490       19,158       57,422       53,893  
   General & administrative
     6,217       5,677       5,271       4,911       4,916       17,165       14,096  
   Depreciation & amortization
     15,320       14,690       15,583       14,940       14,941       45,593       48,870  
      Total expenses
     42,215       37,892       40,073       40,341       39,015       120,180       116,859  
Operating income
     20,558       19,113       17,203       21,637       19,371       56,874       49,928  
   Interest expense
     9,147       9,496       9,548       9,851       10,087       28,191       30,215  
   Loss on settlement of US treasury rate locks
     ---       8,910       ---       ---       ---       8,910       ---  
Income before equity in earnings of
   unconsolidated joint ventures, minority
   interest and discontinued operations
        11,411          707          7,655          11,786          9,284          19,773          19,713  
Equity in earnings of unconsolidated
   joint ventures
      596        558        394        443        461        1,548        1,030  
Minority interest in operating partnership
     (1,729 )     23       (1,088 )     (1,778 )     (1,370 )     (2,794 )     (2,716 )
Income from continuing operations
     10,278       1,288       6,961       10,451       8,375       18,527       18,027  
Discontinued operations (1)
     ---       ---       ---       22       22       ---       76  
Net income
     10,278       1,288       6,961       10,473       8,397       18,527       18,103  
Less applicable preferred share dividends
     (1,406 )     (1,407 )     (1,406 )     (1,406 )     (1,406 )     (4,219 )     (4,219 )
Net income (loss) available to common
   shareholders
   $ 8,872     $ (119 )   $ 5,555     $ 9,067     $ 6,991     $ 14,308     $ 13,884  
Basic earnings per common share:
                                                        
   Income (loss) from continuing operations
   $ .29     $ ---     $ .18     $ .29     $ .23     $ .46     $ .45  
   Net income (loss)
   $ .29     $ ---     $ .18     $ .29     $ .23     $ .46     $ .45  
Diluted earnings per common share:
                                                        
   Income (loss) from continuing operations
   $ .28     $ ---     $ .18     $ .29     $ .22     $ .45     $ .44  
   Net income (loss)
   $ .28     $ ---     $ .18     $ .29     $ .22     $ .45     $ .44  
Weighted average common shares:
                                                        
   Basic
     31,129       31,068       30,979       30,867       30,847       31,059       30,805  
   Diluted
     31,871       31,548       31,336       31,725       31,400       31,833       31,401  
 

(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.

 
 
 

FFO and FAD Analysis (dollars and shares in thousands)
   
Three Months Ended
    
YTD
  
      09/08       06/08       03/08       12/07       09/07       09/08       09/07  
Funds from operations:
                                                        
   Net income
   $ 10,278     $ 1,288     $ 6,961     $ 10,473     $ 8,397     $ 18,527     $ 18,103  
   Adjusted for -
                                                        
      Minority interest in operating
        partnership
      1,729       (23 )      1,088        1,778        1,370        2,794        2,716  
      Minority interest, depreciation
        and amortization in
        discontinued operations
        --          --          --          5          52          --          160  
      Depreciation and amortization
        uniquely significant to real estate –
       wholly owned
        15,219          14,608          15,508          14,865          14,865          45,335          48,641  
      Depreciation and amortization
        uniquely significant to real estate –
        joint ventures
        635          651          652          626          651          1,938          1,985  
      (Gain) on sale of real estate
     --       --       --       (6 )     --       --       --  
      Preferred share dividends
     (1,406 )     (1,407 )     (1,406 )     (1,406 )     (1,406 )     (4,219 )     (4,219 )
Funds from operations
   $ 26,455     $ 15,117     $ 22,803     $ 26,335     $ 23,929     $ 64,375     $ 67,386  
                                                         
Funds from operations per share
   $ .70     $ .40     $ .61     $ .70     $ .64     $ 1.70     $ 1.80  
Funds available for distribution:
                                                        
   Funds from operations
   $ 26,455     $ 15,117     $ 22,803     $ 26,335     $ 23,929     $ 64,375     $ 67,386  
   Adjusted For -
                                                        
      Corporate depreciation
          excluded above
      101        82        75        75        76        258        229  
      Amortization of finance costs
     462       371       379       430       473       1,212       1,308  
      Loss on termination of US treasury
           lock derivatives
     --       8,910       --       --       --       8,910       --  
      Amortization of share compensation
     1,404       1,396       1,224       1,103       1,067       4,024       2,956  
      Straight line rent adjustment
     (822 )     (1,085 )     (789 )     (562 )     (753 )     (2,696 )     (2,306 )
      Market rent adjustment
     (135 )     (198 )     105       (270 )     (277 )     (228 )     (877 )
      Market rate interest adjustment
     --       (438 )     (608 )     (609 )     (605 )     (1,046 )     (1,787 )
      2nd generation tenant allowances
     (3,088 )     (2,701 )     (4,177 )     (4,247 )     (3,268 )     (9,966 )     (14,629 )
      Capital improvements
     (12,062 )     (9,500 )     (2,549 )     (3,076 )     (579 )     (24,111 )     (4,647 )
Funds available for distribution
   $ 12,315     $ 11,954     $ 16,463     $ 19,179     $ 20,063     $ 40,732     $ 47,633  
Funds available for distribution
   per share
   $ .32     $ .32     $ .44     $ .51     $ .54     $ 1.07     $ 1.27  
Dividends paid per share
   $ .38     $ .38     $ .36     $ .36     $ .36     $ 1.12     $ 1.06  
                                                         
FFO payout ratio
     54 %     95 %     59 %     51 %     56 %     100 %     59 %
FAD payout ratio
     119 %     119 %     82 %     71 %     67 %     104 %     83 %
Diluted weighted average common shs.
     37,938       37,615       37,403       37,792       37,467       37,900       37,468  


 
 
 

Unconsolidated Joint Venture Information – All
Summary Balance Sheets (dollars in thousands)
 
 
 
9/30/08
 
 
6/30/08
 
 
3/31/08
 
 
12/31/07
 
 
9/30/07
  
Tanger’s 
Share as of 
9/30/08   
Assets
              
   Investment properties at cost – net
$72,118
$73,033
$70,541
$71,022
$72,200
  
$35,486
   Construction in progress
226,031
181,246
134,756
103,568
81,638
  
75,344
   Cash and cash equivalents
4,104
3,896
2,708
2,282
4,109
  
1,862
   Deferred charges – net
6,041
6,184
2,157
2,092
2,746
  
$2,217
   Other assets
7,853
7,894
8,613
8,425
9,305
  
3,087
Total assets
$316,147
$272,253
$218,775
$187,389
$169,998
  
$117,996
               
Liabilities & Owners’ Equity
              
    Mortgage payable
$259,789
$215,028
$173,249
$148,321
$128,886
  
$96,771
    Construction trade payables
26,750
28,129
20,736
13,052
14,128
  
9,066
    Accounts payable & other liabilities
6,845
7,117
9,281
6,377
3,915
  
2,700
Total liabilities
293,384
250,274
203,266
167,750
146,929
  
108,537
Owners’ equity
22,763
21,979
15,509
19,639
23,069
  
9,459
Total liabilities & owners’ equity
$316,147
$272,253
$218,775
$187,389
$169,998
  
$117,996

Summary Statements of Operations (dollars in thousands)

 
Three Months Ended
YTD
 
09/08
06/08
03/08
12/07
09/07
09/08
09/07
Revenues
$5,582
$5,031
$4,757
$5,049
$4,949
$15,370
$14,365
Expenses
              
   Property operating
2,128
1,720
1,802
1,891
1,643
5,650
5,003
   General & administrative
90
79
19
29
60
188
219
   Depreciation & amortization
1,302
1,344
1,345
1,354
1,353
3,991
4,119
     Total expenses
3,520
3,143
3,166
3,274
3,056
9,829
9,341
Operating income
2,062
1,888
1,591
1,775
1,893
5,541
5,024
   Interest expense
932
820
840
987
1,025
2,592
3,142
Net income
$1,130
$1,068
$751
$788
$868
$2,949
$1,882
Tanger’s share of:
              
       Total revenues less property
       operating and general &
       administrative expenses (“NOI”)
 
 
$1,692
 
 
$1,617
 
 
$1,466
 
 
$1,563
 
 
$1,625
 
 
$4,775
 
 
$4,586
       Net income
$  596
$  558
$  394
$  443
$  461
$1,548
$1,030
       Depreciation (real estate related)
$  635
$  651
$  652
$  626
$  651
$1,938
$1,985

 
 
 

Unconsolidated Joint Venture Information – Myrtle Beach Hwy 17
Summary Balance Sheets (dollars in thousands)
 
 
 
9/30/08
 
 
6/30/08
 
 
3/31/08
 
 
12/31/07
 
 
9/30/07
  
Tanger’s   
Share as of
9/30/08  
Assets
              
   Investment properties at cost – net
$34,249
$34,644
$34,985
$34,909
$35,541
  
$17,125
   Cash and cash equivalents
1,753
1,369
1,036
1,265
1,501
  
877
   Deferred charges – net
644
644
724
799
896
  
322
   Other assets
2,232
2,335
2,264
2,229
2,243
  
1,116
Total assets
$38,878
$38,992
$39,009
$39,202
$40,181
  
$19,440
               
Liabilities & Owners’ Equity
              
    Mortgage payable
$35,800
$35,800
$35,800
$35,800
$35,800
  
$17,900
    Construction trade payables
891
944
732
277
426
  
446
    Accounts payable & other liabilities
1,777
1,626
2,272
1,491
841
  
889
Total liabilities
38,468
38,370
38,804
37,568
37,067
  
19,235
Owners’ equity
410
622
205
1,634
3,114
  
205
Total liabilities & owners’ equity
$38,878
$38,992
$39,009
$39,202
$40,181
  
$19,440

Summary Statements of Operations (dollars in thousands)

 
             Three Months Ended
          YTD
 
09/08
06/08
03/08
12/07
09/07
09/08
09/07
Revenues
$3,229
$3,194
$2,888
$3,033
$3,208
$9,311
$8,972
Expenses
              
   Property operating
1,122
1,101
1,090
1,135
1,174
3,313
3,297
   General & administrative
4
27
7
2
3
38
31
   Depreciation & amortization
672
733
739
751
753
2,144
2,377
     Total expenses
1,798
1,861
1,836
1,888
1,930
5,495
5,705
Operating income
1,431
1,333
1,052
1,145
1,278
3,816
3,267
   Interest expense
636
543
501
559
566
1,680
1,672
Net income
$795
$790
$551
$586
$712
$2,136
$1,595
Tanger’s share of:
              
       Total revenues less property
       operating and general &
       administrative expenses (“NOI”)
 
 
$1,051
 
 
$1,033
 
 
$896
 
 
$948
 
 
$1,014
 
 
$2,980
 
 
$2,821
       Net income
$  400
$  406
$285
$334
$  371
$1,091
$  841
       Depreciation (real estate related)
$  333
$  356
$360
$335
$  361
$1,049
$1,146

 
 
 

Unconsolidated Joint Venture Information – Wisconsin Dells
Summary Balance Sheets (dollars in thousands)
 
 
 
09/30/08
 
 
06/30/08
 
 
3/31/08
 
 
12/31/07
 
 
09/30/07
  
Tanger’s  
Share as of
09/30/08  
Assets
              
   Investment properties at cost - net
$34,426
$34,965
$35,556
$36,113
$36,659
  
$17,213
   Cash and cash equivalents
1,210
676
277
525
396
  
605
   Deferred charges – net
575
640
706
771
836
  
288
   Other assets
582
731
860
792
506
  
291
Total assets
$36,793
$37,012
$37,399
$38,201
$38,397
  
$18,397
               
Liabilities & Owners’ Equity
              
    Mortgage payable
$25,250
$25,250
$25,250
$25,250
$25,250
  
$12,625
    Construction trade payables
--
--
158
186
206
  
--
    Accounts payable & other liabilities
725
727
591
874
517
  
363
Total liabilities
25,975
25,977
25,999
26,310
25,973
  
12,988
Owners’ equity
10,818
11,035
11,400
11,891
12,424
  
5,409
Total liabilities & owners’ equity
$36,793
$37,012
$37,399
$38,201
$38,397
  
$18,397

Summary Statements of Operations (dollars in thousands)

 
                         Three Months Ended
                    YTD
 
09/08
06/08
03/08
12/07
09/07
09/08
09/07
Revenues
$1,903
$1,795
$1,848
$1,977
$1,704
$5,546
$5,337
Expenses
              
   Property operating
582
615
712
756
469
1,909
1,706
   General & administrative
2
6
3
3
5
11
41
   Depreciation & amortization
610
607
606
603
600
1,823
1,742
     Total expenses
1,194
1,228
1,321
1,362
1,074
3,743
3,489
Operating income
709
567
527
615
630
1,803
1,848
   Interest expense
266
271
339
428
459
876
1,470
Net income
$443
$296
$188
$187
$171
$927
$378
Tanger’s share of:
              
       Total revenues less property
       operating and general &
       administrative expenses (“NOI”)
 
 
$659
 
 
$587
 
 
$567
 
 
$609
 
 
$614
 
 
$1,813
 
 
$1,795
       Net income
$232
$158
$105
$105
$95
$495
$220
       Depreciation (real estate related)
      $295
      $294
      $292
      $291
      $290
    $881
      $840

 
 
 

Unconsolidated Joint Venture Information – Deer Park
Summary Balance Sheets (dollars in thousands)
 
 
 
09/30/08
 
 
06/30/08
 
 
03/31/08
 
 
12/31/07
 
 
09/30/07
  
Tanger’s Share
as of        
09/30/08      
Assets
              
   Investment properties at cost - net
$   3,443
$   3,424
--
--
--
  
$  1,148
   Construction in progress
226,031
181,246
$134,756
$103,568
$81,638
  
75,344
   Cash and cash equivalents
1,141
1,851
1,395
492
2,212
  
380
   Deferred charges – net
4,822
4,900
727
522
1,014
  
1,607
   Other assets
5,039
4,828
5,489
5,404
6,556
  
1,680
Total assets
$240,476
$196,249
$142,367
$109,986
$91,420
  
 $80,159
               
Liabilities & Owners’ Equity
              
    Mortgage payable
$198,739
$153,978
$112,199
$87,271
$67,836
  
$66,246
    Construction trade payables
25,859
27,185
19,846
12,589
13,496
  
8,620
    Accounts payable & other liabilities
4,343
4,764
6,418
4,012
2,557
  
1,448
Total liabilities
228,941
185,927
138,463
103,872
83,889
  
76,314
Owners’ equity
11,535
10,322
3,904
6,114
7,531
  
3,845
Total liabilities & owners’ equity
$240,476
$196,249
$142,367
$109,986
$91,420
  
$80,159

Summary Statements of Operations (dollars in thousands)

 
                          Three Months Ended
            YTD
 
09/08
06/08
03/08
12/07
09/07
09/08
09/07
Revenues
$450
$42
$21
$39
$37
$513
$  56
Expenses
              
   Property operating
424
4
--
--
--
428
--
   General & administrative
84
46
9
24
52
139
147
   Depreciation & amortization
20
4
--
--
--
24
--
     Total expenses
528
54
9
24
52
591
147
Operating income
(78)
(12)
12
15
(15)
(78)
(91)
   Interest expense
30
6
--
--
--
36
--
Net income (loss)
$(108)
$(18)
$12
$15
$(15)
$(114)
$(91)
Tanger’s share of:
              
       Total revenues less property
       operating and general &
       administrative expenses (“NOI”)
 
 
$(18)
 
 
$ (2)
 
 
$ 4
 
 
$ 5
 
 
$ (5)
 
 
$  (18)
 
 
$(30)
       Net income (loss)
$(36)
$ (6)
$ 4
$ 5
$ (5)
$  (38)
$(30)
       Depreciation (real estate related)
       $    7
       $    1
          $--
        $ --
       $   --
$      8
       $    --

 
 
 

Debt Outstanding Summary (dollars in thousands)
 

      As of September 30, 2008
 
Principal
Balance 
Interest
Rate
Maturity
Date
       
Unsecured debt
      
   Unsecured term loan credit facility (1)
$235,000
Libor + 1.60%
6/10/11
   Unsecured credit facilities
149,500
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
(701)
    
Total debt
$783,299
    
Senior Unsecured Notes Financial Covenants (2)

As of September 30, 2008
 
Required
Actual
Compliance
Total Consolidated Debt to Adjusted Total Assets
60%
  53%
Yes
Total Secured Debt to Adjusted Total Assets
40%
  ---%
Yes
Total Unencumbered Assets to Unsecured Debt
135%
189%
Yes
Consolidated Income Available for Debt Service to      
Annual Debt Service Charge
 
2.00
 
3.76
 
Yes

(1)  
In July 2008, we entered into an interest rate swap agreement with for a notional amount of $118.0 million.  The purpose of the swap was to fix the interest rate on a portion of the $235.0 million outstanding under the term loan facility completed in June 2008.  The swap fixed the one month LIBOR rate at 3.605%.  This swap combined with the current spread of 160 basis points on the term loan facility fixes our interest rate on $118.0 million of variable rate debt at 5.205% until April 1, 2011.  In September 2008, we entered into an additional interest rate swap agreement for a notional amount of $117.0 million.  The purpose of the swap was to fix the interest rate on the remaining portion of the $235.0 million outstanding under the term loan facility completed in June 2008.  The swap fixed the one month LIBOR rate at 3.700%.  This swap combined with the current spread of 160 basis points on the term loan facility fixes our interest rate on $117.0 million of variable rate debt at 5.300% until April 1, 2011.

(2)  
For a complete listing of all Debt Covenants related to the Company’s Senior Unsecured Notes, as well as definitions of the above terms, please refer to the Company’s filings with the Securities and Exchange Commission.

 
 
 

Future Scheduled Principal Payments (dollars in thousands)

As of September 30, 2008
 
 
Year
Scheduled  
Amortization
Payments  
 
Balloon  
Payments
Total    
Scheduled
Payments
2008
$  --
$          --
$          --
2009
--
--
--
2010
--
--
--
2011
--
384,500
384,500
2012
--
--
--
2013
--
--
--
2014
--
--
--
2015
--
250,000
250,000
2016
--
--
--
2017 & thereafter
--
(1) 149,500
149,500
 
$--
$784,000
$784,000
   Net Discount on Debt
  
(701)
     
$783,299



 
(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.




 

 
 
 

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