EX-99.2 3 skt8kex992june302011.htm SKTSUPPLEMENT SKT 8K EX 99.2 June 30 2011


Exhibit 99.2
Tanger Factory Outlet Centers, Inc.
  
Supplemental Operating and Financial Data
June 30, 2011


1
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/11


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, 2010.
  
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
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/11


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
7

Major Tenants
8

Lease Expirations as of June 30, 2011
9

Leasing Activity
10

 
 
 
 
Financial Data:
 
 
 
Consolidated Balance Sheets
11

Consolidated Statements of Operations
12

FFO and FAD Analysis
14

Unconsolidated Joint Venture Information
15

Debt Outstanding Summary
18

Future Scheduled Principal Payments
19

Senior Unsecured Notes Financial Covenants
19

 
 

Investor Information
20



3
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/11


Geographic Diversification
As of June 30, 2011
 
 
 
 
 
 
 
 
 
 
 
 
State
# of Centers
 
GLA
 
% of GLA
 
 
 
 
 
 
South Carolina
5

 
1,563,508

 
16
%
New York
1

 
729,475

 
7
%
Georgia
2

 
665,780

 
7
%
Pennsylvania
2

 
626,974

 
6
%
Texas
2

 
619,729

 
6
%
Delaware
1

 
568,900

 
6
%
Alabama
1

 
557,228

 
6
%
North Carolina
3

 
505,242

 
5
%
Michigan
2

 
436,752

 
4
%
Tennessee
1

 
419,038

 
4
%
Ohio
1

 
410,016

 
4
%
Missouri
1

 
302,922

 
3
%
Utah
1

 
298,379

 
3
%
Connecticut
1

 
291,051

 
3
%
Louisiana
1

 
282,403

 
3
%
Iowa
1

 
277,230

 
3
%
Oregon
1

 
270,212

 
3
%
Illinois
1

 
250,439

 
3
%
New Hampshire
1

 
245,698

 
2
%
Florida
1

 
198,950

 
2
%
California
1

 
171,300

 
2
%
Maine
2

 
84,313

 
1
%
Total (1)
33

 
9,775,539

 
100
%
(1)
Excludes one 265,061 square foot center in Wisconsin Dells, WI, of which Tanger owns a 50% interest through a joint venture arrangement. Also, excludes one 653,780 square foot shopping center and one 29,253 square foot warehouse in Deer Park, NY of which Tanger owns a 33.3% interest through a joint venture arrangement.


4
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/11


Property Summary - Occupancy at End of Each Period Shown
Wholly-owned properties
Location
Total GLA
6/30/11
 
% Occupied
6/30/11
 
% Occupied
3/31/11
 
% Occupied
12/31/10
 
% Occupied
9/30/10
 
% Occupied
6/30/10
Riverhead, NY
729,475

 
100
%
 
98
%
 
100
%
 
100
%
 
99
%
Rehoboth, DE
568,900

 
98
%
 
99
%
 
99
%
 
99
%
 
98
%
Foley, AL
557,228

 
98
%
 
98
%
 
99
%
 
97
%
 
97
%
San Marcos, TX
441,929

 
97
%
 
95
%
 
100
%
 
100
%
 
97
%
Myrtle Beach Hwy 501, SC
424,247

 
99
%
 
92
%
 
94
%
 
93
%
 
92
%
Sevierville, TN
419,038

 
100
%
 
100
%
 
100
%
 
99
%
 
99
%
Jeffersonville, OH
410,016

 
99
%
 
N/A

 
N/A

 
N/A

 
N/A

Myrtle Beach Hwy 17, SC
403,161

 
97
%
 
96
%
 
100
%
 
99
%
 
100
%
Washington, PA
372,972

 
99
%
 
99
%
 
99
%
 
99
%
 
95
%
Commerce II, GA
370,512

 
99
%
 
99
%
 
100
%
 
100
%
 
97
%
Charleston, SC
352,315

 
93
%
 
92
%
 
100
%
 
99
%
 
97
%
Howell, MI
324,632

 
98
%
 
99
%
 
98
%
 
99
%
 
95
%
Mebane, NC
318,910

 
100
%
 
99
%
 
100
%
 
N/A

 
N/A

Branson, MO
302,922

 
98
%
 
98
%
 
100
%
 
100
%
 
100
%
Park City, UT
298,379

 
100
%
 
100
%
 
100
%
 
98
%
 
99
%
Locust Grove, GA
295,268

 
99
%
 
99
%
 
99
%
 
100
%
 
99
%
Westbrook, CT
291,051

 
98
%
 
92
%
 
99
%
 
99
%
 
95
%
Gonzales, LA
282,403

 
99
%
 
95
%
 
100
%
 
100
%
 
99
%
Williamsburg, IA
277,230

 
97
%
 
96
%
 
93
%
 
92
%
 
89
%
Lincoln City, OR
270,212

 
98
%
 
99
%
 
100
%
 
99
%
 
99
%
Lancaster, PA
254,002

 
100
%
 
98
%
 
95
%
 
100
%
 
98
%
Tuscola, IL
250,439

 
87
%
 
86
%
 
85
%
 
85
%
 
83
%
Tilton, NH
245,698

 
100
%
 
99
%
 
100
%
 
100
%
 
100
%
Hilton Head II, SC
206,586

 
98
%
 
98
%
 
98
%
 
98
%
 
100
%
Fort Myers, FL
198,950

 
85
%
 
90
%
 
93
%
 
88
%
 
88
%
Terrell, TX
177,800

 
94
%
 
94
%
 
96
%
 
96
%
 
94
%
Hilton Head I, SC (3)
177,199

 
96
%
 
82
%
 
N/A

 
N/A

 
N/A

Barstow, CA
171,300

 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
West Branch, MI
112,120

 
100
%
 
98
%
 
98
%
 
98
%
 
98
%
Blowing Rock, NC
104,154

 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
Nags Head, NC
82,178

 
100
%
 
95
%
 
97
%
 
100
%
 
100
%
Kittery I, ME
59,694

 
93
%
 
89
%
 
100
%
 
100
%
 
100
%
Kittery II, ME
24,619

 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
Commerce I, GA (4)
N/A

 
N/A

 
N/A

 
N/A

 
N/A

 
46
%
Total
9,775,539

 
98% (1)

 
97% (1)

 
98
%
 
98
%
 
97% (2)

 
 
 
 
 
 
 
 
 
 
 
 
Unconsolidated joint ventures
 
 
 
 
 
 
 
 
 
 
Deer Park, NY (5)
683,033

 
88
%
 
85
%
 
86
%
 
86
%
 
84
%
Wisconsin Dells, WI
265,061

 
99
%
 
98
%
 
99
%
 
99
%
 
99
%

5
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/11


(1)
Excludes the occupancy rate at our Hilton Head I, South Carolina center which opened March 31, 2011 and has not yet stabilized.
(2)
Excludes the occupancy rate at our Commerce I, Georgia center which was held for sale as of June 30, 2010 and subsequently sold on July 7, 2010.
(3)
Center opened on March 31, 2011.
(4)
Center sold in July 2010.
(5)
Includes a 29,253 square foot warehouse adjacent to the shopping center.


6
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/11



(1)
Excludes one 265,061 square foot center in Wisconsin Dells, WI, of which Tanger owns a 50% interest through a joint venture arrangement. Also, excludes one 653,780 square foot shopping center and one 29,253 square foot warehouse in Deer Park, NY of which Tanger owns a 33.3% interest through a joint venture arrangement.
(2)
Excludes the occupancy rate at our Hilton Head I, South Carolina center which opened during the first quarter of 2011 and has not yet stabilized.
(3)
Excludes the occupancy rate at our Commerce I, Georgia center which was held for sale as of June 30, 2010 and subsequently sold on July 7, 2010.
(4)
Excludes the occupancy rate at our Washington, Pennsylvania center which opened during the third quarter of 2008 and had not yet stabilized.


7
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/11


Major Tenants (1)
Ten Largest Tenants As of June 30, 2011
Tenant
# of
Stores

 
GLA

 
% of
Total GLA

The Gap, Inc.
76

 
811,413

 
8.3
%
Phillips-Van Heusen
120

 
616,768

 
6.3
%
Dress Barn, Inc.
57

 
346,565

 
3.6
%
Nike
31

 
344,857

 
3.5
%
VF Outlet, Inc.
30

 
310,999

 
3.2
%
Adidas
37

 
297,679

 
3.1
%
Ann Taylor
39

 
277,814

 
2.8
%
Polo Ralph Lauren
27

 
265,412

 
2.7
%
Carter's
54

 
255,456

 
2.6
%
Hanesbrands Direct, LLC
40

 
223,720

 
2.3
%
Total of All Listed Above
511

 
3,750,683

 
38.4
%
(1)
Excludes one 265,061 square foot center in Wisconsin Dells, WI, of which Tanger owns a 50% interest through a joint venture arrangement. Also, excludes one 653,780 square foot shopping center and one 29,253 square foot warehouse in Deer Park, NY of which Tanger owns a 33.3% interest through a joint venture arrangement.


8
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/11


Lease Expirations as of June 30, 2011




(1)    Excludes one 265,061 square foot center in Wisconsin Dells, WI, of which Tanger owns a 50% interest through a joint venture arrangement. Also, excludes one 653,780 square foot shopping center and one 29,253 square foot warehouse in Deer Park, NY of which Tanger owns a 33.3% interest through a joint venture arrangement.


9
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/11


Leasing Activity (1)
 
3/31/2011
 
6/30/2011
 
9/30/2011
 
12/31/2011
 
Year to Date
 
Prior
Year to
Date
Re-tenanted Space:
 
 
 

 
 
 
 
 
 

 
 

Number of leases
96

 
36

 

 

 
132

 
86

Gross leasable area
336,269

 
132,434

 

 

 
468,703

 
323,202

New initial base rent per square foot
$
25.90

 
$
27.36

 

 

 
$
26.31

 
$
21.56

Prior expiring base rent per square foot
$
19.27

 
$
19.12

 

 

 
$
19.23

 
$
19.26

Percent increase
34.4
%
 
43.1
%
 

 

 
36.8
%
 
12.0
%
 
 
 
 
 
 
 
 
 
 

 
 

New straight line base rent per square foot
$
28.26

 
$
29.52

 

 

 
$
28.26

 
$
23.08

Prior straight line base rent per square foot
$
18.85

 
$
19.00

 

 

 
$
18.89

 
$
18.86

Percent increase
49.9
%
 
55.4
%
 

 

 
51.5
%
 
22.4
%
 
 
 
 
 
 
 
 
 
 

 
 

Renewed Space:
 
 
 
 
 
 
 
 
 

 
 

Number of leases
180

 
61

 

 

 
241

 
208

Gross leasable area
932,095

 
259,556

 

 

 
1,191,651

 
898,723

New initial base rent per square foot
$
20.15

 
$
20.51

 

 

 
$
20.23

 
$
19.47

Prior expiring base rent per square foot
$
18.44

 
$
19.32

 

 

 
$
18.63

 
$
18.57

Percent increase
9.3
%
 
6.2
%
 

 

 
8.6
%
 
4.8
%
 
 
 
 
 
 
 
 
 
 

 
 

New straight line base rent per square foot
$
20.73

 
$
21.28

 

 

 
$
20.85

 
$
19.98

Prior straight line base rent per square foot
$
17.88

 
$
19.13

 

 

 
$
18.15

 
$
18.37

Percent increase
16.0
%
 
11.3
%
 

 

 
14.9
%
 
8.7
%
 
 
 
 
 
 
 
 
 
 

 
 

Total Re-tenanted and Renewed Space:
 
 
 
 
 
 
 
 
 

 
 

Number of leases
276

 
97

 

 

 
373

 
294

Gross leasable area
1,268,364

 
391,990

 

 

 
1,660,354

 
1,221,925

New initial base rent per square foot
$
21.67

 
$
22.83

 

 

 
$
21.94

 
$
20.02

Prior expiring base rent per square foot
$
18.66

 
$
19.25

 

 

 
$
18.8

 
$
18.75

Percent increase
16.1
%
 
18.6
%
 

 

 
16.7
%
 
6.8
%
 
 
 
 
 
 
 
 
 
 

 
 

New straight line base rent per square foot
$
22.73

 
$
24.06

 

 

 
$
23.04

 
$
20.8

Prior straight line base rent per square foot
$
18.14

 
$
19.08

 

 

 
$
18.36

 
$
18.5

Percent increase
25.3
%
 
26.1
%
 

 

 
25.5
%
 
12.4
%
(1)
Excludes one 265,061 square foot center in Wisconsin Dells, WI, of which Tanger owns a 50% interest through a joint venture arrangement. Also, excludes one 653,780 square foot shopping center and one 29,253 square foot warehouse in Deer Park, NY of which Tanger owns a 33.3% interest through a joint venture arrangement.

10
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/11


Consolidated Balance Sheets (dollars in thousands)
 
6/30/2011
 
3/31/2011
 
12/31/2010
 
9/30/2010
 
6/30/2010
Assets
 
 
 
 
 
 
 
 
 
Rental property
 
 
 

 
 

 
 

 
 

Land
$
144,329

 
$
141,577

 
$
141,577

 
$
141,576

 
$
141,575

Buildings
1,560,920

 
1,441,260

 
1,411,404

 
1,353,171

 
1,343,155

Construction in progress
3,367

 
2,590

 
23,233

 
58,952

 
39,883

Total rental property
1,708,616

 
1,585,427

 
1,576,214

 
1,553,699

 
1,524,613

Accumulated depreciation
(477,687
)
 
(462,942
)
 
(453,145
)
 
(438,955
)
 
(425,168
)
Total rental property - net
1,230,929

 
1,122,485

 
1,123,069

 
1,114,744

 
1,099,445

Cash and cash equivalents
18,438

 
731

 
5,758

 
2,835

 
3,453

Rental property held for sale
—

 
—

 
723

 
424

 
1,921

Investments in unconsolidated joint ventures
4,592

 
5,861

 
6,386

 
7,064

 
7,570

Deferred lease and intangible costs, net
51,573

 
28,090

 
29,317

 
29,381

 
30,966

Deferred debt origination costs, net
6,783

 
7,165

 
7,593

 
3,984

 
4,158

Prepaids and other assets
55,274

 
53,912

 
44,088

 
39,127

 
31,627

Total assets
$
1,367,589

 
$
1,218,244

 
$
1,216,934

 
$
1,197,559

 
$
1,179,140

Liabilities & equity
 

 
 
 
 
 
 

 
 

Liabilities
 

 
 

 
 

 
 

 
 

Debt
 

 
 

 
 

 
 

 
 

Senior, unsecured notes, net of discount
$
554,644

 
$
554,670

 
$
554,616

 
$
554,515

 
$
554,415

Senior, unsecured bridge loan
150,000

 
—

 
—

 
—

 
—

Unsecured lines of credit
182,000

 
166,300

 
160,000

 
54,800

 
50,800

Total debt
886,644

 
720,970

 
714,616

 
609,315

 
605,215

Construction trade payables
27,333

 
30,984

 
31,831

 
31,051

 
30,829

Accounts payable & accruals
27,129

 
33,503

 
31,594

 
40,060

 
22,747

Other liabilities
16,170

 
16,409

 
16,998

 
17,084

 
17,286

Total liabilities
957,276

 
801,866

 
795,039

 
697,510

 
676,077

Equity
 

 
 

 
 

 
 

 
 

Tanger Factory Outlet Centers, Inc. equity
 

 
 

 
 

 
 

 
 

Preferred shares
—

 
—

 
—

 
75,000

 
75,000

Common shares
813

 
813

 
810

 
810

 
810

Paid in capital
607,756

 
606,121

 
604,359

 
600,408

 
598,865

Accumulated distributions in excess of net income
(253,213
)
 
(246,372
)
 
(240,024
)
 
(233,387
)
 
(229,298
)
Accum. other comprehensive income
1,683

 
1,754

 
1,784

 
1,828

 
1,884

Total Tanger Factory Outlet Centers, Inc. equity
357,039

 
362,316

 
366,929

 
444,659

 
447,261

Noncontrolling interest
53,274

 
54,062

 
54,966

 
55,390

 
55,802

Total equity
410,313

 
416,378

 
421,895

 
500,049

 
503,063

Total liabilities and equity
$
1,367,589

 
$
1,218,244

 
$
1,216,934

 
$
1,197,559

 
$
1,179,140




11
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/11


Consolidated Statements of Operations (dollars and shares in thousands)
 
Three Months Ended
 
YTD
 
6/30/11
 
3/31/11
 
12/31/10
 
9/30/10
 
6/30/10
 
6/30/11
 
6/30/10
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
Base rentals
$
48,393

 
$
46,219

 
$
46,654

 
$
44,857

 
$
43,968

 
$
94,612

 
$
87,465

Percentage rentals
1,137

 
1,391

 
3,651

 
1,910

 
1,048

 
2,528

 
2,353

Expense reimbursements
20,616

 
21,205

 
22,540

 
20,139

 
18,429

 
41,821

 
37,948

Other income
1,955

 
1,924

 
2,648

 
2,567

 
1,850

 
3,879

 
3,571

Total revenues
72,101

 
70,739

 
75,493

 
69,473

 
65,295

 
142,840

 
131,337

Expenses
 

 
 

 
 

 
 

 
 

 
 
 
 

Property operating
23,765

 
24,108

 
26,223

 
22,567

 
21,758

 
47,873

 
44,107

General & administrative
7,185

 
6,767

 
6,721

 
6,403

 
5,963

 
13,952

 
11,429

Acquisition costs
974

 
567

 
83

 
—

 
—

 
1,541

 
—

Abandoned development costs
—

 
158

 
—

 
—

 
365

 
158

 
365

Impairment charge
—

 
—

 
—

 
—

 
—

 
—

 
735

Depreciation and amortization
17,858

 
17,965

 
17,651

 
16,805

 
17,109

 
35,823

 
43,583

Total expenses
49,782

 
49,565

 
50,678

 
45,775

 
45,195

 
99,347

 
100,219

Operating income
22,319

 
21,174

 
24,815

 
23,698

 
20,100

 
43,493

 
31,118

Interest expense
(10,713
)
 
(10,325
)
 
(9,454
)
 
(8,767
)
 
(7,951
)
 
(21,038
)
 
(15,899
)
Loss on early extinguishment of debt
—

 
—

 
—

 
—

 
(563
)
 
—

 
(563
)
Loss on termination of derivatives
—

 
—

 
—

 
—

 
(6,142
)
 
—

 
(6,142
)
Income before equity in losses of unconsolidated joint ventures
11,606

 
10,849

 
15,361

 
14,931

 
5,444

 
22,455

 
8,514

Equity in losses of unconsolidated joint ventures
(764
)
 
(32
)
 
(270
)
 
(75
)
 
(51
)
 
(796
)
 
(119
)
Income from continuing operations
10,842

 
10,817

 
15,091

 
14,856

 
5,393

 
21,659

 
8,395

Discontinued operations
—

 
—

 
5

 
(103
)
 
(1
)
 
—

 
—

Net income
10,842

 
10,817

 
15,096

 
14,753

 
5,392

 
21,659

 
8,395

Noncontrolling interest
(1,420
)
 
(1,419
)
 
(1,507
)
 
(1,754
)
 
(524
)
 
(2,839
)
 
(734
)
Net income attributable to the Company
9,422

 
9,398

 
13,589

 
12,999

 
4,868

 
18,820

 
7,661

Less applicable preferred share dividends
—

 
—

 
(1,078
)
 
(1,406
)
 
(1,407
)
 
—

 
(2,813
)
Less original issuance costs rleated to redeemed preferred shares
—

 
—

 
(2,539
)
 
—

 
—

 
—

 
—

Allocation to participating securities
(165
)
 
(192
)
 
(144
)
 
(142
)
 
(143
)
 
(357
)
 
(312
)
Net income available to common shareholders
$
9,257

 
$
9,206

 
$
9,828

 
$
11,451

 
$
3,318

 
$
18,463

 
$
4,536

 
 

 
 

 
 

 
 

 
 

 
 

 
 



12
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/11


 
Three Months Ended
 
YTD
 
6/30/11
 
3/31/11
 
12/31/10
 
9/30/10
 
6/30/10
 
6/30/11
 
6/30/10
Basic earnings per common share:
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations
$
0.11

 
$
0.11

 
$
0.12

 
$
0.14

 
$
0.04

 
$
0.23

 
$
0.06

Discontinued operations
—

 
—

 
—

 
—

 
—

 
—

 
—

Net income
$
0.11

 
$
0.11

 
$
0.12

 
$
0.14

 
$
0.04

 
$
0.23

 
$
0.06

Diluted earnings per common share:
 

 
 

 
 

 
 

 
 

 
 
 
 

Income from continuing operations
$
0.11

 
$
0.11

 
$
0.12

 
$
0.14

 
$
0.04

 
$
0.23

 
$
0.06

Discontinued operations
—

 
—

 
—

 
—

 
—

 
—

 
—

Net income
$
0.11

 
$
0.11

 
$
0.12

 
$
0.14

 
$
0.04

 
$
0.23

 
$
0.06

Weighted average common shares:
 

 
 

 
 

 
 

 
 

 
 
 
 

Basic
80,483

 
80,353

 
80,256

 
80,225

 
80,206

 
80,418

 
80,133

Diluted
81,104

 
80,552

 
80,445

 
80,402

 
80,343

 
81,039

 
80,282



13
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/11


FFO and FAD Analysis (dollars and shares in thousands)
 
Three Months Ended
 
YTD
 
6/30/11
 
3/31/11
 
12/31/10
 
9/30/10
 
6/30/10
 
6/30/11
 
6/30/10
Funds from operations:
 
 
 

 
 

 
 

 
 

 
 

 
 

Net income
$
10,842

 
$
10,817

 
$
15,096

 
$
14,753

 
$
5,392

 
$
21,659

 
$
8,395

Adjusted for -
 

 
 

 
 

 
 

 
 

 
 
 
 

Depreciation and amortization uniquely significant to real estate - wholly-owned discontinued operations
—

 
—

 
—

 
—

 
34

 
—

 
87

Depreciation and amortization uniquely significant to real estate - wholly-owned
17,686

 
17,807

 
17,508

 
16,675

 
16,984

 
35,493

 
43,343

Depreciation and amortization uniquely significant to real estate - joint ventures
1,336

 
1,306

 
1,312

 
1,289

 
1,280

 
2,642

 
2,545

Funds from operations
29,864

 
29,930

 
33,916

 
32,717

 
23,690

 
59,794

 
54,370

Preferred share dividends
—

 
—

 
(1,078
)
 
(1,406
)
 
(1,407
)
 
—

 
(2,813
)
Original issuance costs related to redeemed preferred shares
—

 
—

 
(2,539
)
 
—

 
—

 
—

 
—

Allocation to participating securities
(264
)
 
(310
)
 
(242
)
 
(247
)
 
(177
)
 
(572
)
 
(442
)
Funds from operations available to common shareholders
$
29,600

 
$
29,620

 
$
30,057

 
$
31,064

 
$
22,106

 
$
59,222

 
$
51,115

Funds from operations per share
$
0.32

 
$
0.32

 
$
0.32

 
$
0.34

 
$
0.24

 
$
0.64

 
$
0.55

Funds available for distribution to common shareholders:
 
 
 

 
 

 
 

 
 

 
 
 
 
Funds from operations
$
29,600

 
$
29,620

 
$
30,057

 
$
31,064

 
$
22,106

 
$
59,222

 
$
51,115

Adjusted for -
 

 
 

 
 

 
 

 
 

 
 

 
 

Original issuance costs related to redeemed preferred shares
—

 
—

 
(2,539
)
 
—

 
—

 
—

 
—

Corporate depreciation excluded above
172

 
158

 
143

 
130

 
125

 
330

 
240

Amortization of finance costs
482

 
466

 
370

 
259

 
315

 
948

 
657

Amortization of net debt discount (premium)
22

 
23

 
(372
)
 
(21
)
 
4

 
45

 
218

Gain (loss) on early extinguishment of debt
—

 
—

 
—

 
—

 
563

 
—

 
563

Loss on termination of derivatives
—

 
—

 
—

 
—

 
6,142

 
—

 
6,142

Impairment charge
—

 
—

 
—

 
—

 
111

 
—

 
735

Amortization of share-based compensation
1,615

 
1,798

 
1,515

 
1,437

 
1,363

 
3,413

 
2,503

Straight line rent adjustment
(1,240
)
 
(793
)
 
(506
)
 
(767
)
 
(669
)
 
(2,033
)
 
(1,403
)
Market rent adjustment
(202
)
 
(155
)
 
(374
)
 
(195
)
 
(216
)
 
(357
)
 
(381
)
2nd generation tenant allowances
(2,979
)
 
(2,443
)
 
(5,145
)
 
(4,797
)
 
(1,328
)
 
(5,422
)
 
(3,049
)
Capital improvements
(4,334
)
 
(1,598
)
 
(2,480
)
 
(2,531
)
 
(1,309
)
 
(5,932
)
 
(2,909
)
Funds available for distribution
$
23,136

 
$
27,076

 
$
25,747

 
$
24,579

 
$
27,207

 
$
50,214

 
$
54,431

Funds available for distribution per share
$
0.25

 
$
0.29

 
$
0.28

 
$
0.27

 
$
0.29

 
$
0.54

 
$
0.59

Dividends paid per share
$
0.2000

 
$
0.1938

 
$
0.1938

 
$
0.1938

 
$
0.1938

 
$
0.3938

 
$
0.3850

FFO payout ratio
63
%
 
61
%
 
61
%
 
58
%
 
81
%
 
62
%
 
70
%
FAD payout ratio
80
%
 
67
%
 
69
%
 
72
%
 
67
%
 
73
%
 
65
%
Diluted weighted average common shs.
93,237

 
92,685

 
92,578

 
92,535

 
92,476

 
93,172

 
92,415


14
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/11


Unconsolidated Joint Venture Information - All
Summary Balance Sheets (dollars in thousands)
 
6/30/2011
 
3/31/2011
 
12/31/2010
 
9/30/2010
 
6/30/2010
 
Tanger's Share as of 6/30/11
Assets
 
 
 
 
 
 
 
 
 
 
 
Investment properties at cost - net
$
284,076

 
$
285,332

 
$
283,902

 
$
287,365

 
$
289,587

 
$
99,562

Cash and cash equivalents
15,682

 
14,697

 
13,838

 
10,966

 
9,020

 
5,880

Deferred lease costs, net
2,877

 
3,011

 
2,563

 
2,707

 
2,862

 
1,007

Deferred debt origination costs, net
970

 
1,172

 
1,427

 
1,681

 
1,937

 
343

Other assets
8,555

 
7,349

 
6,291

 
6,511

 
6,697

 
3,031

Total assets
$
312,160

 
$
311,561

 
$
308,021

 
$
309,230

 
$
310,103

 
$
109,823

 
 

 
 

 
 

 
 

 
 

 
 

Liabilities & Owners' Equity
 

 
 

 
 

 
 

 
 

 
 

Mortgage payable
$
293,534

 
$
294,034

 
$
294,034

 
$
294,034

 
$
294,034

 
$
101,886

Construction trade payables
6,034

 
4,710

 
341

 
1,213

 
878

 
2,071

Accounts payable & other liabilities
6,937

 
4,281

 
4,810

 
3,729

 
3,991

 
2,498

Total liabilities
306,505

 
303,025

 
299,185

 
298,976

 
298,903

 
106,455

Owners' equity
5,655

 
8,536

 
8,836

 
10,254

 
11,200

 
3,368

Total liabilities & owners' equity
$
312,160

 
$
311,561

 
$
308,021

 
$
309,230

 
$
310,103

 
$
109,823

Summary Statements of Operations (dollars in thousands)
 
Three Months Ended
 
YTD
 
6/30/11
 
3/31/11
 
12/31/10
 
9/30/10
 
6/30/10
 
6/30/11
 
6/30/10
Revenues
$
9,752

 
$
9,562

 
$
9,691

 
$
9,632

 
$
9,261

 
$
19,314

 
$
18,535

Expenses
 

 
 

 
 

 
 

 
 

 
 
 


Property operating
4,473

 
4,101

 
5,187

 
4,575

 
4,200

 
8,574

 
8,410

General & administrative
(131
)
 
187

 
(11
)
 
107

 
72

 
56

 
359

Depreciation & amortization
3,627

 
3,611

 
3,635

 
3,567

 
3,546

 
7,238

 
7,043

Total expenses
7,969

 
7,899

 
8,811

 
8,249

 
7,818

 
15,868

 
15,812

Operating income
1,783

 
1,663

 
880

 
1,383

 
1,443

 
3,446

 
2,723

Interest expense (1)
4,126

 
1,803

 
1,785

 
1,771

 
1,717

 
5,929

 
3,391

Net loss
$
(2,343
)
 
$
(140
)
 
$
(905
)
 
$
(388
)
 
$
(274
)
 
$
(2,483
)
 
$
(668
)
Tanger's share of:
 

 
 

 
 

 
 

 
 

 
 

 
 

Total revenues less property operating and general & administrative expenses ("NOI")
$
1,984

 
$
1,912

 
$
1,676

 
$
1,842

 
$
1,842

 
$
3,896

 
$
3,633

Net loss
$
(764
)
 
$
(32
)
 
$
(270
)
 
$
(75
)
 
$
(51
)
 
$
(796
)
 
$
(119
)
Depreciation (real estate related)
$
1,337

 
$
1,306

 
$
1,312

 
$
1,289

 
$
1,280

 
$
2,643

 
$
2,545

(1) For the three and six months ended June 30, 2011, includes the accrual of interest expense at a weighted average default interest rate of approximately 9.20% from May 17, 2011 to June 30, 2011.

15
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/11


Unconsolidated Joint Venture Information - Wisconsin Dells
Summary Balance Sheets (dollars in thousands)
 
6/30/2011
 
3/31/2011
 
12/31/2010
 
9/30/2010
 
6/30/2010
 
Tanger's Share as of 6/30/11
Assets
 
 
 
 
 
 
 
 
 
 
 
Investment properties at cost - net
$
29,217

 
$
29,528

 
$
29,968

 
$
30,430

 
$
31,004

 
$
14,609

Cash and cash equivalents
3,918

 
4,095

 
4,253

 
3,901

 
3,702

 
1,959

Deferred lease costs, net
288

 
269

 
210

 
239

 
286

 
144

Deferred debt origination costs, net
115

 
134

 
153

 
172

 
191

 
58

Other assets
714

 
781

 
723

 
594

 
602

 
357

Total assets
$
34,252

 
$
34,807

 
$
35,307

 
$
35,336

 
$
35,785

 
$
17,127

 
 

 
 

 
 

 
 

 
 

 
 

Liabilities & Owners' Equity
 

 
 

 
 

 
 

 
 

 
 

Mortgage payable
$
24,250

 
$
24,750

 
$
24,750

 
$
24,750

 
$
24,750

 
$
12,125

Construction trade payables
358

 
158

 
106

 
—

 
46

 
179

Accounts payable & other liabilities
1,110

 
954

 
1,030

 
734

 
844

 
556

Total liabilities
25,718

 
25,862

 
25,886

 
25,484

 
25,640

 
12,860

Owners' equity
8,534

 
8,945

 
9,421

 
9,852

 
10,145

 
4,267

Total liabilities & owners' equity
$
34,252

 
$
34,807

 
$
35,307

 
$
35,336

 
$
35,785

 
$
17,127

Summary Statements of Operations (dollars in thousands)
 
Three Months Ended
 
YTD
 
6/30/11
 
3/31/11
 
12/31/10
 
9/30/10
 
6/30/10
 
6/30/11
 
6/30/10
Revenues
$
1,798

 
$
1,801

 
$
1,793

 
$
1,822

 
$
1,715

 
$
3,599

 
$
3,638

Expenses
 

 
 

 
 

 
 

 
 

 


 
 

Property operating
758

 
805

 
770

 
665

 
643

 
1,563

 
1,359

General & administrative
1

 
22

 
5

 
2

 
3

 
23

 
12

Depreciation & amortization
631

 
626

 
619

 
618

 
615

 
1,257

 
1,228

Total expenses
1,390

 
1,453

 
1,394

 
1,285

 
1,261

 
2,843

 
2,599

Operating income
408

 
348

 
399

 
537

 
454

 
756

 
1,039

Interest expense
218

 
225

 
229

 
230

 
227

 
443

 
452

Net income
$
190

 
$
123

 
$
170

 
$
307

 
$
227

 
$
313

 
$
587

Tanger's share of:
 

 
 

 
 

 
 

 
 

 
 

 
 

Total revenues less property operating and general & administrative expenses ("NOI")
$
519

 
$
487

 
$
509

 
$
578

 
$
534

 
$
1,066

 
$
1,133

Net income
$
103

 
$
70

 
$
92

 
$
163

 
$
124

 
$
173

 
$
312

Depreciation (real estate related)
$
307

 
$
304

 
$
302

 
$
300

 
$
297

 
$
611

 
$
595


16
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/11


Unconsolidated Joint Venture Information - Deer Park
Summary Balance Sheets (dollars in thousands)
 
6/30/2011
 
3/31/2011
 
12/31/2010
 
9/30/2010
 
6/30/2010
 
Tanger's Share as of 6/30/11
Assets
 
 
 
 
 
 
 
 
 
 
 
Investment properties at cost - net
$
254,859

 
$
255,804

 
$
253,934

 
$
256,935

 
$
258,583

 
$
84,953

Cash and cash equivalents
11,764

 
10,552

 
9,585

 
7,065

 
5,318

 
3,921

Deferred lease costs, net
2,589

 
2,742

 
2,352

 
2,468

 
2,576

 
863

Deferred debt origination costs, net
855

 
1,038

 
1,275

 
1,509

 
1,746

 
285

Prepaids and other assets
7,477

 
6,318

 
5,568

 
5,917

 
6,095

 
2,492

Total assets
$
277,544

 
$
276,454

 
$
272,714

 
$
273,894

 
$
274,318

 
$
92,514

 
 

 
 

 
 

 
 

 
 

 
 

Liabilities & Owners' Equity
 

 
 

 
 

 
 

 
 

 
 

Mortgage payable
$
269,284

 
$
269,284

 
$
269,284

 
$
269,284

 
$
269,284

 
$
89,761

Construction trade payables
5,676

 
4,552

 
235

 
1,213

 
832

 
1,892

Accounts payable & other liabilities
5,827

 
3,277

 
3,780

 
2,995

 
3,147

 
1,942

Total liabilities
280,787

 
277,113

 
273,299

 
273,492

 
273,263

 
93,595

Owners' equity
(3,243
)
 
(659
)
 
(585
)
 
402

 
1,055

 
(1,081
)
Total liabilities & owners' equity
$
277,544

 
$
276,454

 
$
272,714

 
$
273,894

 
$
274,318

 
$
92,514

Summary Statements of Operations (dollars in thousands)
 
Three Months Ended
 
YTD
 
6/30/11
 
3/31/11
 
12/31/10
 
9/30/10
 
6/30/10
 
6/30/11
 
6/30/10
Revenues
$
7,954

 
$
7,761

 
$
7,898

 
$
7,810

 
$
7,546

 
$
15,715

 
$
14,897

Expenses
 

 
 

 
 

 
 

 
 

 
 

 
 

Property operating
3,715

 
3,296

 
4,417

 
3,910

 
3,557

 
7,011

 
7,051

General & administrative
(82
)
 
115

 
(16
)
 
105

 
69

 
33

 
347

Depreciation & amortization
2,996

 
2,985

 
3,016

 
2,949

 
2,931

 
5,981

 
5,815

Total expenses
6,629

 
6,396

 
7,417

 
6,964

 
6,557

 
13,025

 
13,213

Operating income
1,325

 
1,365

 
481

 
846

 
989

 
2,690

 
1,684

Interest expense
3,908

 
1,578

 
1,556

 
1,541

 
1,490

 
5,486

 
2,939

Net loss
$
(2,583
)
 
$
(213
)
 
$
(1,075
)
 
$
(695
)
 
$
(501
)
 
$
(2,796
)
 
$
(1,255
)
Tanger's share of:
 

 
 

 
 

 
 

 
 

 
 

 
 

Total revenues less property operating and general & administrative expenses ("NOI")
$
1,440

 
$
1,450

 
$
1,167

 
$
1,264

 
$
1,308

 
$
2,890

 
$
2,500

Net loss
$
(894
)
 
$
(77
)
 
$
(364
)
 
$
(238
)
 
$
(172
)
 
$
(971
)
 
$
(430
)
Depreciation (real estate related)
$
1,031

 
$
1,001

 
$
1,012

 
$
989

 
$
983

 
$
2,032

 
$
1,950



17
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/11


Debt Outstanding Summary (dollars in thousands)
As of June 30, 2011
 
Principal
Balance
 
Interest
Rate
 
Maturity
Date
Unsecured debt:
 

 
 
 
 
Unsecured bridge loan (1)
$
150,000

 
Libor + 1.60%

 
9/26/2011
Unsecured lines of credit (2)
182,000

 
Libor + 1.90%

 
11/29/2013
2015 Senior unsecured notes
250,000

 
6.15
%
 
11/15/2015
2026 Senior unsecured exchangeable notes (3)
7,030

 
3.75
%
 
8/18/2011
2020 Senior unsecured notes
300,000

 
6.125
%
 
6/1/2020
Net debt discounts
(2,386
)
 
 

 
 
Total consolidated debt
$
886,644

 
 

 
 
Tanger's share of unconsolidated JV debt:
 

 
 

 
 
Wisconsin Dells
12,375

 
Libor + 3.00%

 
12/18/2012
Deer Park (4)
89,761

 
Libor + 1.375 - 3.50%

 
5/17/2011
Total Tanger's share of unconsolidated JV debt
$
102,136

 
 

 
 
(1)
The Company has entered into a senior unsecured bridge loan with Wells Fargo Bank, N.A. Maturity of the interim loan occurs on September 26, 2011. However, at its discretion, the Company may extend the maturity to June 22, 2012 by exercising each of its three ninety day extension options. There is a fee of $75,000 associated with the exercise of each extension option.
(2)
The Company has an unsecured, syndicated credit line with a borrowing capacity totaling $385.0 million and a separate cash management line of credit with a borrowing capacity of $15.0 million with one of the participants in the syndication. Both lines expire on November 29, 2013. Facility fees of 40 basis points annually are charged in arrears based on the amount of the commitment.
(3)
On January 1, 2009, the Company retrospectively adopted new guidance related to the accounting for convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement). This new guidance required us to bifurcate the notes into debt and equity components based on the fair value of the notes independent of the conversion feature as of the date of issuance in August 2006. As a result of this adoption, the bonds were recorded with a debt discount based on a market interest rate of 6.11%. At June 30, 2011, the unamortized discount on the remaining $7.0 million in exchangeable notes totaled $20,000. In July 2011, the Company exercised its option to redeem the notes by issuing a redemption notice on July 18, 2011 for all outstanding notes on August 18, 2011, the five year anniversary of the issuance of the notes. Noteholders have until August 16, 2011 to exercise their exchange rights.
(4)
In May 2007, the joint venture entered into a four-year, interest-only construction loan facility with a one-year maturity extension option. On the initial maturity date of May 17, 2011, the joint venture did not qualify for the one-year extension option under the loan. Subsequently, the joint venture has been accruing interest expense at the default rate of approximately 9.2%, compared to the stated rate of approximately 1.7% based on current LIBOR and prime rates. As of June 30, 2011, the outstanding principal balances of the senior and mezzanine loans were $252.0 million and $15.0 million, respectively, and $17.0 million was available for funding of additional construction draw requests under the senior loan facility. In February 2009, the joint venture entered into an interest rate cap agreement on a nominal amount of $240.0 million which became effective June 1, 2009. The derivative contract puts a cap of 4% on the LIBOR index and expires on April 1, 2011. In June 2008, the joint venture entered into an interest-only mortgage loan agreement for a warehouse adjacent to the property with an interest rate of LIBOR plus 185 basis points and a initial maturity of May 17, 2011. The joint venture did not qualify for the one year extension option under this loan. As of June 30, 2011, the outstanding principal balance under the warehouse mortgage was $2.3 million. The joint venture partners continue to work with the administrative agent bank of the lender group to negotiate new financing terms for the properties.

18
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/11


Future Scheduled Principal Payments (dollars in thousands)
As of June 30, 2011
Year
Tanger
Consolidated
Payments
 
Tanger's Share
of Unconsolidated
JV Payments
 
Total
Scheduled
Payments
2011 (1)
$
157,030

 
$
89,761

 
$
246,791

2012
—

 
12,375

 
12,375

2013
182,000

 
—

 
182,000

2014
—

 
—

 
—

2015
250,000

 
—

 
250,000

2016
—

 
—

 
—

2017
—

 
—

 
—

2018
—

 
—

 
—

2019
—

 
—

 
—

2020 & thereafter
300,000

 
—

 
300,000

 
$
889,030

 
$
102,136

 
$
991,166

Net Discount on Debt
(2,386
)
 
—

 
(2,386
)
 
$
886,644

 
$
102,136

 
$
988,780

Senior Unsecured Notes Financial Covenants (2)
As of June 30, 2011
 
Required
 
Actual
 
Compliance
Total Consolidated Debt to Adjusted Total Assets
<60%
 
47
%
 
Yes
Total Secured Debt to Adjusted Total Assets
<40%
 
—
%
 
Yes
Total Unencumbered Assets to Unsecured Debt
>135%
 
213
%
 
Yes
Consolidated Income Available for Debt Service to Annual Debt Service Charge
>1.5
 
4.4

 
Yes
(1)
Included in this amount is $7.0 million which represents our exchangeable, senior unsecured notes issued in August 2006. In July 2011, the Company issued a redemption notice on July 18, 2011 for redemption of all outstanding notes on August 18, 2011, the five year anniversary of the issuance of the notes. Noteholders have until August 16, 2011 to exercise their exchange rights.
(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.


19
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/11


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) 834-6892
Fax:
(336) 297-0931
e-mail:
tangermail@tangeroutlet.com
Mail:
Tanger Factory Outlet Centers, Inc.
 
3200 Northline Avenue
 
Suite 360
 
Greensboro, NC 27408


20
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/11