EX-99.2 3 skt8kex992december312012.htm SUPPLEMENT SKT 8K EX 99.2 December 31 2012


Exhibit 99.2
Tanger Factory Outlet Centers, Inc.
  
Supplemental Operating and Financial Data
December 31, 2012


1
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2012


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, 2011 and for the fiscal year ended December 31, 2012 (when available).
  
This Supplemental Operating and Financial Data is not an offer to sell or a solicitation to buy any securities of the Company. Any offers to sell or solicitations to buy any securities of the Company shall be made only by means of a prospectus.


2
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2012


Table of Contents
Section
 
 
 
Portfolio Data:
 
 
 
Geographic Diversification
Property Summary - Occupancy at End of Each Period Shown
Portfolio Occupancy at the End of Each Period
Major Tenants
Lease Expirations as of December 31, 2012
Leasing Activity
 
 
 
 
Financial Data:
 
 
 
Consolidated Balance Sheets
Consolidated Statements of Operations
FFO and FAD Analysis
Unconsolidated Joint Venture Information
Development Summary
Debt Outstanding Summary
Future Scheduled Principal Payments
Senior Unsecured Notes Financial Covenants
 
 
Investor Information


3
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2012


Geographic Diversification

Consolidated Properties
As of December 31, 2012
State
# of Centers
 
GLA
 
% of GLA
South Carolina
5

 
1,576,873

 
15
%
Pennsylvania
3

 
874,422

 
8
%
New York
1

 
729,734

 
7
%
Georgia
2

 
691,582

 
6
%
Texas
2

 
619,729

 
6
%
Delaware
1

 
568,975

 
5
%
Alabama
1

 
557,228

 
5
%
North Carolina
3

 
505,225

 
5
%
New Jersey
1

 
489,762

 
4
%
Michigan
2

 
437,222

 
4
%
Tennessee
1

 
419,038

 
4
%
Ohio
1

 
411,776

 
4
%
Missouri
1

 
302,922

 
3
%
Utah
1

 
298,391

 
3
%
Connecticut
1

 
289,898

 
3
%
Iowa
1

 
277,230

 
2
%
Oregon
1

 
270,212

 
2
%
Louisiana
1

 
270,208

 
3
%
Illinois
1

 
250,439

 
2
%
New Hampshire
1

 
245,698

 
2
%
Florida
1

 
198,877

 
2
%
Maryland
1

 
197,707

 
2
%
California
1

 
171,300

 
2
%
Maine
2

 
82,286

 
1
%
Total
36

 
10,736,734

 
100
%
Unconsolidated Joint Venture Properties

# of Centers
 
GLA
 
Ownership %
Deer Park, NY
1

 
741,981

 
33.33
%
Texas City, TX
1

 
352,705

 
50.00
%
Glendale, AZ
1

 
332,234

 
58.00
%
Wisconsin Dells, WI
1

 
265,086

 
50.00
%
Bromont, QC
1

 
162,943

 
50.00
%
Cookstown, ON
1

 
155,522

 
50.00
%
Saint-Sauveur, QC
1

 
116,097

 
50.00
%
Deer Park, NY (warehouse)
—

 
29,253

 
33.33
%
Total
7

 
2,155,821

 
 

4
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2012


Property Summary - Occupancy at End of Each Period Shown

Consolidated properties
 
 
 
 
 
 
 
 
 
 
Location
Total GLA 12/31/12
 
% Occupied 12/31/12
 
% Occupied 9/30/12
 
% Occupied
6/30/12
 
% Occupied
3/31/12
 
% Occupied
12/31/11
Riverhead, NY
729,734

 
100
%
 
99
%
 
100
%
 
98
%
 
99
%
Rehoboth Beach, DE
568,975

 
100
%
 
100
%
 
99
%
 
100
%
 
100
%
Foley, AL
557,228

 
97
%
 
98
%
 
97
%
 
98
%
 
97
%
Atlantic City, NJ
489,762

 
96
%
 
96
%
 
97
%
 
98
%
 
99
%
San Marcos, TX
441,929

 
100
%
 
100
%
 
100
%
 
99
%
 
100
%
Myrtle Beach Hwy 501, SC
425,247

 
98
%
 
99
%
 
99
%
 
97
%
 
99
%
Sevierville, TN
419,038

 
100
%
 
100
%
 
99
%
 
99
%
 
100
%
Jeffersonville, OH
411,776

 
100
%
 
100
%
 
99
%
 
95
%
 
99
%
Myrtle Beach Hwy 17, SC
402,791

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

 
100
%
 
100
%
 
99
%
 
98
%
 
99
%
Commerce II, GA
370,512

 
100
%
 
100
%
 
100
%
 
98
%
 
100
%
Charleston, SC
365,107

 
100
%
 
99
%
 
96
%
 
97
%
 
99
%
Howell, MI
324,652

 
96
%
 
96
%
 
94
%
 
97
%
 
98
%
Locust Grove, GA
321,070

 
100
%
 
100
%
 
99
%
 
98
%
 
100
%
Mebane, NC
318,910

 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
Branson, MO
302,922

 
100
%
 
99
%
 
97
%
 
98
%
 
100
%
Park City, UT
298,391

 
100
%
 
100
%
 
100
%
 
99
%
 
100
%
Westbrook, CT
289,898

 
100
%
 
99
%
 
97
%
 
98
%
 
100
%
Williamsburg, IA
277,230

 
100
%
 
100
%
 
99
%
 
98
%
 
99
%
Lincoln City, OR
270,212

 
99
%
 
98
%
 
97
%
 
95
%
 
96
%
Gonzales, LA
270,208

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

 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
Tuscola, IL
250,439

 
91
%
 
91
%
 
90
%
 
90
%
 
90
%
Hershey, PA
247,448

 
100
%
 
99
%
 
100
%
 
97
%
 
100
%
Tilton, NH
245,698

 
100
%
 
100
%
 
99
%
 
99
%
 
100
%
Hilton Head II, SC
206,529

 
100
%
 
100
%
 
100
%
 
100
%
 
98
%
Fort Myers, FL
198,877

 
94
%
 
93
%
 
89
%
 
92
%
 
92
%
Ocean City, MD
197,707

 
93
%
 
93
%
 
89
%
 
91
%
 
92
%
Terrell, TX
177,800

 
96
%
 
94
%
 
94
%
 
94
%
 
94
%
Hilton Head I, SC
177,199

 
100
%
 
100
%
 
100
%
 
100
%
 
98
%
Barstow, CA
171,300

 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
West Branch, MI
112,570

 
100
%
 
100
%
 
100
%
 
96
%
 
96
%
Blowing Rock, NC
104,154

 
99
%
 
97
%
 
97
%
 
98
%
 
100
%
Nags Head, NC
82,161

 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
Kittery I, ME
57,667

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

 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
Total
10,736,734

 
99
%
 
99
%
 
98
%
 
97
%
 
99
%




5
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2012


Unconsolidated joint venture properties
 
 
 
 
 
 
 
 
 
 
Location
Total GLA 12/31/12
 
% Occupied 12/31/12
 
% Occupied 9/30/12
 
% Occupied
6/30/12

 
% Occupied
3/31/12

 
% Occupied
12/31/11

Deer Park, NY (1)
741,981

 
93
%
 
92
%
 
91
%
 
91
%
 
90
%
Texas City, TX
352,705

 
97
%
 
na

 
na

 
na

 
na

Glendale, AZ
332,234

 
94
%
 
na

 
na

 
na

 
na

Wisconsin Dells, WI
265,086

 
98
%
 
98
%
 
99
%
 
98
%
 
98
%
Bromont, QC (2)
162,943

 
89
%
 
na

 
na

 
na

 
na

Cookstown, ON (3)
155,522

 
100
%
 
100
%
 
99
%
 
91
%
 
100
%
Saint-Sauveur, QC (2)
116,097

 
100
%
 
na

 
na

 
na

 
na

(1)
Excludes a 29,253 square foot warehouse adjacent to the shopping center.
(2)
Center acquired in November 2012, located in Quebec, Canada.
(3)
Center acquired in December 2011 and located in Ontario, Canada.



6
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2012


(1)
Excludes seven unconsolidated outlet centers and one warehouse. See table page 4.
(2)
Excludes the occupancy rate at our Hilton Head I, South Carolina center which opened during the first quarter of 2011 and had not yet stabilized.



7
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2012


Major Tenants (1)
Ten Largest Tenants as of December 31, 2012
Tenant
# of
Stores

 
GLA

 
% of
Total GLA

The Gap, Inc.
80

 
853,525

 
7.9
%
Phillips-Van Heusen
130

 
675,400

 
6.3
%
Dress Barn, Inc.
89

 
525,125

 
4.9
%
VF Outlet, Inc.
43

 
378,242

 
3.5
%
Nike
36

 
371,020

 
3.4
%
Adidas
42

 
325,546

 
3.0
%
Ann Taylor
44

 
306,768

 
2.9
%
Polo Ralph Lauren
29

 
286,851

 
2.7
%
Carter's
59

 
276,641

 
2.6
%
Hanesbrands Direct, LLC
43

 
245,663

 
2.3
%
Total of All Listed Above
595

 
4,244,781

 
39.5
%
(1)
Excludes seven unconsolidated outlet centers and one warehouse. See table on page 4.





8
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2012


Lease Expirations as of December 31, 2012
(1)
Excludes seven unconsolidated outlet centers and one warehouse. See table on page 4.

9
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2012


Leasing Activity (1)
 
3/31/2012
 
6/30/2012
 
9/30/2012
 
12/31/2012
 
Year to Date
 
Prior
Year to
Date
Re-tenanted Space:
 
 
 

 
 

 
 

 
 

 
 

Number of leases
60

 
32

 
38

 
6

 
136

 
156

Gross leasable area
220,237

 
98,393

 
121,232

 
9,991

 
449,853

 
548,054

New initial base rent per square foot
$
30.01

 
$
28.07

 
$
28.24

 
$
34.82

 
$
29.22

 
$
25.96

Prior expiring base rent per square foot
$
20.84

 
$
21.25

 
$
20.75

 
$
26.74

 
$
21.04

 
$
19.20

Percent increase
44.0
%
 
32.1
%
 
36.1
%
 
30.2
%
 
38.9
%
 
35.3
%
 
 
 
 
 
 
 
 
 
 
 
 
New straight line base rent per square foot
$
32.53

 
$
30.52

 
$
30.57

 
$
39.48

 
$
31.72

 
$
28.24

Prior straight line base rent per square foot
$
20.60

 
$
20.78

 
$
20.06

 
$
25.17

 
$
20.60

 
$
18.82

Percent increase
57.9
%
 
46.9
%
 
52.4
%
 
56.9
%
 
54.0
%
 
50.1
%
 
 
 
 
 
 
 
 
 
 
 
 
Renewed Space:
 
 
 
 
 
 
 
 
 
 
 
Number of leases
188

 
54

 
35

 
45

 
322

 
307

Gross leasable area
920,436

 
268,841

 
168,560

 
178,375

 
1,536,212

 
1,459,431

New initial base rent per square foot
$
21.27

 
$
20.19

 
$
19.92

 
$
21.35

 
$
20.94

 
$
19.99

Prior expiring base rent per square foot
$
19.38

 
$
18.49

 
$
18.18

 
$
18.72

 
$
19.02

 
$
18.66

Percent increase
9.7
%
 
9.2
%
 
9.6
%
 
14.0
%
 
10.1
%
 
7.1
%
 


 


 


 


 


 
 
New straight line base rent per square foot
$
21.97

 
$
20.94

 
$
20.30

 
$
23.21

 
$
21.75

 
$
20.54

Prior straight line base rent per square foot
$
19.18

 
$
18.14

 
$
17.78

 
$
17.89

 
$
18.70

 
$
18.16

Percent increase
14.5
%
 
15.4
%
 
14.2
%
 
29.7
%
 
16.3
%
 
13.1
%
 
 
 
 
 
 
 
 
 
 
 
 
Total Re-tenanted and Renewed Space:
 
 
 
 
 
 
 
 
 
 
 
Number of leases
248

 
86

 
73

 
51

 
458

 
463

Gross leasable area
1,140,673

 
367,234

 
289,792

 
188,366

 
1,986,065

 
2,007,485

New initial base rent per square foot
$
22.96

 
$
22.30

 
$
23.40

 
$
22.06

 
$
22.82

 
$
21.62

Prior expiring base rent per square foot
$
19.66

 
$
19.23

 
$
19.26

 
$
19.15

 
$
19.48

 
$
18.81

Percent increase
16.7
%
 
16.0
%
 
21.5
%
 
15.2
%
 
17.1
%
 
15.0
%
 
 
 
 
 
 
 
 
 
 
 
 
New straight line base rent per square foot
$
24.01

 
$
23.51

 
$
24.60

 
$
24.07

 
$
24.01

 
$
22.64

Prior straight line base rent per square foot
$
19.46

 
$
18.85

 
$
18.73

 
$
18.28

 
$
19.13

 
$
18.34

Percent increase
23.4
%
 
24.7
%
 
31.3
%
 
31.7
%
 
25.5
%
 
23.4
%
(1)
Excludes seven unconsolidated outlet centers and one warehouse. See table on page 4.

10
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2012


Consolidated Balance Sheets (dollars in thousands)
 
12/31/2012
 
9/30/2012
 
6/30/2012
 
3/31/2012
 
12/31/2011
ASSETS
 
 
 
 
 
 
 
 
 
Rental property
 
 
 
 
 

 
 

 
 

Land
$
148,002

 
$
148,002

 
$
148,002

 
$
148,002

 
$
148,002

Buildings, improvements and fixtures
1,796,042

 
1,793,963

 
1,787,050

 
1,773,055

 
1,764,494

Construction in progress
3,308

 
—

 
—

 
4,545

 
3,549

 
1,947,352

 
1,941,965

 
1,935,052

 
1,925,602

 
1,916,045

Accumulated depreciation
(582,859
)
 
(565,521
)
 
(547,167
)
 
(530,150
)
 
(512,485
)
Total rental property, net
1,364,493

 
1,376,444

 
1,387,885

 
1,395,452

 
1,403,560

Cash and cash equivalents
10,335

 
9,511

 
11,855

 
10,787

 
7,894

Investments in unconsolidated joint ventures
126,632

 
82,676

 
72,394

 
48,483

 
28,481

Deferred lease costs and other intangibles, net
101,040

 
104,496

 
109,850

 
115,157

 
120,636

Deferred debt origination costs, net
9,083

 
9,619

 
10,219

 
10,775

 
8,861

Prepaids and other assets
60,842

 
56,211

 
50,172

 
54,304

 
52,383

Total assets
$
1,672,425

 
$
1,638,957

 
$
1,642,375

 
$
1,634,958

 
$
1,621,815

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
Debt
 
 
 
 
 
 
 
 
 
Senior, unsecured notes, net of discounts
$
548,033

 
$
547,964

 
$
547,896

 
$
547,829

 
$
547,763

Unsecured term loans, net of discounts
259,453

 
259,416

 
259,380

 
259,344

 
9,308

Mortgages payable, including premiums
107,745

 
108,672

 
109,583

 
110,483

 
111,379

Unsecured lines of credit
178,306

 
136,769

 
141,224

 
121,073

 
357,092

Total debt
1,093,537

 
1,052,821

 
1,058,083

 
1,038,729

 
1,025,542

Construction trade payables
7,084

 
10,525

 
14,746

 
15,698

 
13,656

Accounts payable & accruals
41,149

 
46,087

 
38,011

 
43,165

 
37,757

Other liabilities
16,780

 
16,429

 
16,283

 
16,399

 
16,428

Total liabilities
1,158,550

 
1,125,862

 
1,127,123

 
1,113,991

 
1,093,383

Commitments and contingencies
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
Tanger Factory Outlet Centers, Inc.
 
 
 
 
 
 
 
 
 
Common shares
941

 
939

 
935

 
926

 
867

Paid in capital
766,056

 
762,821

 
758,381

 
751,633

 
720,073

Accumulated distributions in excess of net income
(285,588
)
 
(283,943
)
 
(279,657
)
 
(271,941
)
 
(261,913
)
Accumulated other comprehensive income
1,200

 
1,252

 
1,405

 
1,449

 
1,535

  Equity attributable to Tanger Factory Outlet
  Centers, Inc.
482,609

 
481,069

 
481,064

 
482,067

 
460,562

Equity attributable to noncontrolling interests
 
 
 
 
 
 
 
 
 
Noncontrolling interests in Operating Partnership
24,432

 
25,218

 
27,386

 
32,068

 
61,027

Noncontrolling interest in other consolidated partnerships
6,834

 
6,808

 
6,802

 
6,832

 
6,843

Total equity
513,875

 
513,095

 
515,252

 
520,967

 
528,432

Total liabilities and equity
$
1,672,425

 
$
1,638,957

 
$
1,642,375

 
$
1,634,958

 
$
1,621,815


11
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2012


Consolidated Statements of Operations (dollars and shares in thousands)
 
 
 
Three Months Ended
 
YTD
 
12/31/12
 
9/30/12
 
6/30/12
 
3/31/12
 
12/31/11
 
 
12/31/12
 
12/31/11
REVENUES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Base rentals
$
59,769

 
$
59,662

 
$
58,583

 
$
57,219

 
$
58,007

 
 
$
235,233

 
$
207,637

Percentage rentals
4,630

 
3,180

 
1,618

 
1,744

 
3,872

 
 
11,172

 
9,084

Expense reimbursements
26,963

 
24,646

 
24,989

 
23,476

 
24,826

 
 
100,074

 
89,620

Other income
3,574

 
2,995

 
2,145

 
1,804

 
2,435

 
 
10,518

 
8,882

Total revenues
94,936

 
90,483

 
87,335

 
84,243

 
89,140

 
 
356,997

 
315,223

EXPENSES
 
 
 
 
 
 
 
 
 
 
 
 
 


Property operating
29,481

 
27,614

 
27,977

 
26,088

 
27,192

 
 
111,160

 
100,246

General & administrative
9,715

 
9,018

 
8,699

 
10,020

 
8,237

 
 
37,452

 
30,132

Acquisition costs
117

 
—

 
—

 
—

 
217

 
 
117

 
2,736

Abandoned development costs
—

 
—

 
—

 
—

 
—

 
 
—

 
158

Depreciation and amortization
23,436

 
24,809

 
24,923

 
25,515

 
25,228

 
 
98,683

 
84,015

Total expenses
62,749

 
61,441

 
61,599

 
61,623

 
60,874

 
 
247,412

 
217,287

Operating income
32,187

 
29,042

 
25,736

 
22,620

 
28,266

 
 
109,585

 
97,936

Interest expense
12,752

 
12,317

 
12,411

 
12,334

 
12,386

 
 
49,814

 
45,382

Income before equity in losses of unconsolidated joint ventures
19,435

 
16,725

 
13,325

 
10,286

 
15,880

 
 
59,771

 
52,554

Equity in losses of unconsolidated joint ventures
(421
)
 
(555
)
 
(867
)
 
(1,452
)
 
(742
)
 
 
(3,295
)
 
(1,565
)
Net income
19,014

 
16,170

 
12,458

 
8,834

 
15,138

 
 
56,476

 
50,989

Noncontrolling interests in Operating Partnership
(952
)
 
(836
)
 
(766
)
 
(713
)
 
(1,787
)
 
 
(3,267
)
 
(6,356
)
Noncontrolling interests in other consolidated partnerships
(6
)
 
(7
)
 
25

 
7

 
6

 
 
19

 
8

Net income attributable to Tanger Factory Outlet Centers, Inc.
18,056

 
15,327

 
11,717

 
8,128

 
13,357

 
 
53,228

 
44,641

Allocation to participating securities
(208
)
 
(209
)
 
(209
)
 
(158
)
 
(163
)
 
 
(784
)
 
(684
)
Net income available to common shareholders
$
17,848

 
$
15,118

 
$
11,508

 
$
7,970

 
$
13,194

 
 
$
52,444

 
$
43,957

Basic earnings per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
0.19

 
$
0.16

 
$
0.13

 
$
0.09

 
$
0.15

 
 
$
0.57

 
$
0.53

Diluted earnings per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
0.19

 
$
0.16

 
$
0.12

 
$
0.09

 
$
0.15

 
 
$
0.57

 
$
0.52

Weighted average common shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
92,845

 
92,674

 
91,717

 
89,671

 
85,891

 
 
91,733

 
83,000

Diluted
93,807

 
93,647

 
92,816

 
90,832

 
86,917

 
 
92,661

 
84,129





12
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2012


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

 
 
 

 
 

Net income
$
19,014

 
$
16,170

 
$
12,458

 
$
8,834

 
$
15,138

 
 
$
56,476

 
$
50,989

Adjusted for -
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization uniquely significant to real estate - consolidated properties
23,217

 
24,532

 
24,710

 
25,301

 
25,019

 
 
97,760

 
83,275

Depreciation and amortization uniquely significant to real estate - unconsolidated joint ventures
2,996

 
1,641

 
1,653

 
1,815

 
1,253

 
 
8,105

 
5,175

Impairment charge - unconsolidated joint ventures
—

 
—

 
140

 
—

 
300

 
 
140

 
300

Funds from operations
45,227

 
42,343

 
38,961

 
35,950

 
41,710

 
 
162,481

 
139,739

FFO attributable to noncontrolling interests in other consolidated partnerships
(36
)
 
(4
)
 
16

 
(2
)
 
(18
)
 
 
(26
)
 
(37
)
Allocation to participating securities
(451
)
 
(425
)
 
(391
)
 
(308
)
 
(345
)
 
 
(1,576
)
 
(1,240
)
Funds from operations available to
    common shareholders
$
44,740

 
$
41,914

 
$
38,586

 
$
35,640

 
$
41,347

 
 
$
160,879

 
$
138,462

Funds from operations per share
$
0.45

 
$
0.42

 
$
0.39

 
$
0.36

 
$
0.42

 
 
$
1.63

 
$
1.44

Funds available for distribution to common shareholders:
 
 

 
 

 
 
 
 
 
Funds from operations
$
44,740

 
$
41,914

 
$
38,586

 
$
35,640

 
$
41,347

 
 
$
160,879

 
$
138,462

Adjusted for -
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate depreciation excluded above
219

 
276

 
214

 
214

 
209

 
 
923

 
740

Amortization of finance costs
591

 
576

 
585

 
561

 
603

 
 
2,313

 
2,143

Amortization of net debt discount (premium)
(254
)
 
(253
)
 
(252
)
 
(248
)
 
(262
)
 
 
(1,007
)
 
(314
)
Amortization of share-based compensation
2,338

 
2,339

 
2,313

 
3,306

 
1,756

 
 
10,296

 
7,056

Straight line rent adjustment
(783
)
 
(1,009
)
 
(860
)
 
(997
)
 
(787
)
 
 
(3,649
)
 
(3,829
)
Market rent adjustment
141

 
(59
)
 
(196
)
 
(234
)
 
(176
)
 
 
(348
)
 
(454
)
2nd generation tenant allowances
(5,901
)
 
(1,297
)
 
(3,179
)
 
(5,537
)
 
(2,796
)
 
 
(15,914
)
 
(13,984
)
Capital improvements
(1,410
)
 
(2,951
)
 
(2,500
)
 
(891
)
 
(1,181
)
 
 
(7,752
)
 
(10,532
)
Adjustments from unconsolidated joint ventures
17

 
257

 
78

 
168

 
(62
)
 
 
520

 
(198
)
Funds available for distribution
$
39,698

 
$
39,793

 
$
34,789

 
$
31,982

 
$
38,651

 
 
$
146,261

 
$
119,090

Funds available for distribution
   per share
$
0.40

 
$
0.40

 
$
0.35

 
$
0.32

 
$
0.39

 
 
$
1.48

 
$
1.24

Dividends paid per share
$
0.21

 
$
0.21

 
$
0.21

 
$
0.20

 
$
0.20

 
 
$
0.83

 
$
0.79

FFO payout ratio
47
%
 
50
%
 
54
%
 
56
%
 
48
%
 
 
51
%
 
55
%
FAD payout ratio
53
%
 
53
%
 
60
%
 
63
%
 
51
%
 
 
56
%
 
64
%
Diluted weighted average common shs.
98,699

 
98,699

 
98,812

 
98,690

 
98,409

 
 
98,605

 
96,021


13
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2012



Unconsolidated Joint Venture Information

The following table details certain information as of December 31, 2012, except for Net Operating Income ("NOI") which is for the year ended December 31, 2012, about various unconsolidated real estate joint ventures in which we have an ownership interest (dollars in millions):
Joint Venture
 
Center Location
 
Ownership %
 
Square Feet
 
Tanger's Share of Total Assets
 
Tanger's Share of NOI
 
Tanger's Share of Debt
Deer Park
 
Deer Park,
Long Island NY
 
33.3
%
 
741,981

 
$
88.1

 
$
6.3

 
$
82.3

 
 
 
 
 
 
 
 
 
 
 
 
 
Deer Park Warehouse
 
Deer Park,
Long Island NY
 
33.3
%
 
29,253

 
$
0.6

 
$
—

 
$
0.6

 
 
 
 
 
 
 
 
 
 
 
 
 
Galveston/Houston (1)
 
Texas City, TX
 
50.0
%
 
352,705

 
$
42.0

 
$
0.8

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
National Harbor (2)
 
Washington D.C.
Metro Area
 
50.0
%
 
—

 
$
2.9

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
RioCan Canada (3)
 
Various
 
50.0
%
 
434,562

 
$
81.2

 
$
1.9

 
$
10.1

 
 
 
 
 
 
 
 
 
 
 
 
 
Westgate (4)
 
Glendale, AZ
 
58.0
%
 
332,234

 
$
42.2

 
$
0.3

 
$
18.6

 
 
 
 
 
 
 
 
 
 
 
 
 
Wisconsin Dells
 
Wisconsin Dells, WI
 
50.0
%
 
265,086

 
$
15.3

 
$
2.2

 
$
12.1

 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
$
0.3

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
$
272.6

 
$
11.5

 
$
123.7

(1)
Center opened on October 19, 2012.
(2)
Center is currently under development.
(3)
Includes a 155,522 square foot center in Cookstown, Ontario that was acquired in December of 2011, a 162,943 square foot center in Bromont, Quebec and a 116,097 square foot center in Saint-Sauveur, Quebec, both of which were acquired in November of 2012, as well as investments related to due diligence costs for additional potential sites in Canada.
(4)
Center opened on November 15, 2012.


14
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2012


Unconsolidated Joint Venture Information
Summary Combined Balance Sheets (dollars in thousands)
 
12/31/2012
 
9/30/2012
 
6/30/2012
 
3/31/2012
 
12/31/2011
 
 
 
Tanger's Share as of 12/31/12
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Land
$
110,665

 
$
78,531


$
77,479

 
$
78,850

 
$
77,864

 
 
 
$
48,602

Buildings, improvements and fixtures
493,424

 
295,593

 
295,020

 
296,605

 
288,934

 
 
 
211,435

Construction in progress, including land
2,128

 
113,169

 
85,100

 
31,941

 
23,545

 
 
 
1,064

 
606,217

 
487,293

 
457,599

 
407,396

 
390,343

 
 
 
261,101

Accumulated depreciation
(62,547
)
 
(57,067
)
 
(53,192
)
 
(50,039
)
 
(46,245
)
 
 
 
(23,623
)
Total rental property, net
543,670

 
430,226

 
404,407

 
357,357

 
344,098

 
 
 
237,478

Assets held for sale (1)
1,828

 
1,821


1,800


—

 
—

 
 
 
609

Cash and cash equivalents
21,879

 
10,778


16,855


9,621

 
7,582

 
 
 
10,661

Deferred lease costs, net
24,411

 
13,586


13,514


14,294

 
14,815

 
 
 
11,998

Deferred debt origination costs, net
5,213

 
5,773


6,566


6,626

 
7,566

 
 
 
1,972

Prepaids and other assets
25,350

 
21,396


16,386


15,663

 
11,687

 
 
 
9,906

Total assets
$
622,351

 
$
483,580

 
$
459,528

 
$
403,561


$
385,748


 
 
$
272,624

 
 
 
 

 
 

 
 

 
 

 
 
 
 

Liabilities & Owners' Equity
 
 
 

 
 

 
 

 
 

 
 
 
 

Mortgages payable
$
325,192

 
$
288,978

 
$
273,034

 
$
273,534

 
$
303,230

 
 
 
$
123,693

Construction trade payables
21,734

 
14,506

 
23,135

 
7,719

 
2,669

 
 
 
11,318

Accounts payable & other liabilities
31,944

 
26,125

 
25,641

 
24,788

 
27,246

 
 
 
14,377

Total liabilities
378,870

 
329,609

 
321,810

 
306,041

 
333,145


 
 
149,388

Owners' equity
243,481

 
153,971

 
137,718

 
97,520

 
52,603

 
 
 
123,236

Total liabilities & owners' equity
$
622,351

 
$
483,580

 
$
459,528


$
403,561


$
385,748


 
 
$
272,624

(1) Assets related to our Deer Park Warehouse joint venture, which is currently for sale.

15
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2012


Unconsolidated Joint Venture Information
Summary Combined Statements of Operations (dollars in thousands)
 
Three Months Ended
 
YTD
 
12/31/12
9/30/12
 
6/30/12
 
3/31/12
 
12/31/11
 
 
 
12/31/12
 
12/31/11
Revenues
$
19,687

$
11,985


$
11,606


$
11,658

 
$
10,045

 
 
 
$
54,936

 
$
38,847

Expenses




 
 
 
 
 
 
 
 
 
 
 
 
Property operating
9,183

5,521


5,083


4,891

 
4,742

 
 
 
24,678

 
18,034

General & administrative
205

365


237


163

 
136

 
 
 
970

 
250

Acquisition costs
733

—


—


704

 
—

 
 
 
1,437

 
—

Abandoned development costs
57

—


436


954

 
—

 
 
 
1,447

 
—

Impairment charge
—

—


420


—

 
900

 
 
 
420

 
900

Depreciation & amortization
6,723

4,283


4,300


4,608

 
3,470

 
 
 
19,914

 
14,242

Total expenses
16,901

10,169

 
10,476


11,320

 
9,248

 
 
 
48,866

 
33,426

Operating income
2,786

1,816


1,130


338

 
797

 


6,070

 
5,421

Interest expense
3,793

3,540


3,598


3,829

 
3,146

 
 
 
14,760

 
10,456

Net loss
$
(1,007
)
$
(1,724
)

$
(2,468
)

$
(3,491
)
 
$
(2,349
)
 


$
(8,690
)
 
$
(5,035
)
Tanger's share of:
 
 




 
 
 
 
 
 
 
 
 
Total revenues less property operating and general & administrative expenses ("NOI")
$
4,326

$
2,303


$
2,379


$
2,526

 
$
2,196

 
 
 
$
11,534

 
$
7,543

Net loss
$
(421
)
$
(555
)

$
(867
)

$
(1,452
)
 
$
(742
)
 
 
 
$
(3,295
)
 
$
(1,565
)
Depreciation and impairments (real estate related)
$
2,996

$
1,641


$
1,793


$
1,815

 
$
1,553

 
 
 
$
8,245

 
$
5,475


16
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2012



External Growth Pipeline Summary
Represents Tanger's expectations as of February 12, 2013

Project/Market
Approximate
Size (000 SF)
Projected
Total Cost
(Millions)
Tanger
Share
Projected
Return
Projected
Opening
 
 
 
 
 
 
 
UNITED STATES:
 
 
 
 
 
New development
 
 
 
 
 
National Harbor, Washington D.C. metro area
340
$94 - $96
50%
9.5% - 10.5%
November 2013
Scottsdale, AZ
220
$45 - $55
100%
(1)
2H 2014
Foxwoods, Mashantucket, CT (2)
312
$110 - $120
67%
(1)
2H 2014
Charlotte, NC
400
$85 - $95
50%
(1)
2H 2014
Columbus, OH
350
$75 - $85
50%
(1)
2H 2014
 
 
 
 
 
 
 
Expansions
 
 
 
 
 
Gonzales, LA
40
$8 - $9
100%
10% - 11%
April 2013
Park City, UT
21
$5.5 - $6.5
100%
9.5 - 10.5%
4Q 2013
Sevierville, TN 
20
$3 - $4
100%
11.5% - 12.5%
3Q 2013
 
 
 
 
 
 
 
CANADA:
 
 
 
 
 
New development
 
 
 
 
 
Kanata, ON (Ottawa) 
293
$390 - $395
50%
(1)
2H 2014
 
 
 
 
 
 
 
Expansions
 
 
 
 
 
Cookstown, ON (N. Toronto) 
164
$55 - $65
50%
(1)
2H 2014
Saint-Sauveur, QC (NW Montreal)
20
$5.5 - $6.5
50%
(1)
2H 2014
 
 
(1)
Currently expect return to be within the company's targeted stabilized return on cost range of 9% - 11% in the US and 8% - 10% in Canada.
(2)
Based on capital contribution and distribution provisions in the joint venture agreement, we expect our economic interest in the venture's cash flow to be greater than indicated in the the Tanger Share column, which in this case, states the company's legal interest in this venture. The company's economic interest may fluctuate based on a number of factors, including mortgage financing, partnership capital contributions and distributions, and proceeds from gains or losses of asset sales.
 
 
 
 
 
 
 
Anticipated approximate size, projected total cost, Tanger share, projected return, and return on cost for development and expansion projects are subject to adjustment as a result of risks inherent in the development process, some of which are not under the direct control of the company. Please refer to the company's filings with the Securities and Exchange Commission on Form 10-K and Form 10-Q for a discussion of these risks.




17
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2012


Debt Outstanding Summary (dollars in thousands)
As of December 31, 2012
 
Principal
Balance
 
Stated
Interest Rate
 
Effective Interest Rate
 
Maturity
Date
Unsecured debt:
 

 
 
 
 
 
 
Unsecured lines of credit (1)
$
178,306

 
Libor + 1.25%
 
 
 
11/10/2015
2015 Senior unsecured notes
250,000

 
6.15%
 
 
 
11/15/2015
2020 Senior unsecured notes
300,000

 
6.125%
 
 
 
6/1/2020
Unsecured term loan
250,000

 
Libor + 1.80%
 
 
 
2/23/2019
Unsecured note
10,000

 
1.50%
 
3.153
%
 
6/30/2016
Net debt discounts
(2,514
)
 
 
 
 
 
 
Total unsecured debt
985,792

 
 
 
 
 
 
Secured mortgage debt: (2)
 
 
 
 
 
 
 
Atlantic City, NJ (including premium of $4,495)
56,707

 
5.14% - 7.65%
 
5.05
%
 
11/15/2021 - 12/8/2026
Ocean City, MD (including premium of $285)
18,825

 
5.24%
 
4.68
%
 
1/6/2016
Hershey, PA (including premium of $1,582)
32,213

 
5.17% - 8.00%
 
3.40
%
 
8/1/2015
Total secured mortgage debt
107,745

 
 
 
 
 
 
Tanger's share of unconsolidated JV debt:
 

 
 
 
 
 
 
Deer Park
82,315

 
Libor +
 3.50 - 5.00%
 
 
 
5/17/2014
Deer Park Warehouse (3)
614

 
Prime + 5.5%
 
 
 
5/17/2011
RioCan Canada (including premium of $733) (4)
10,069

 
5.10% - 5.75%
 
3.93% - 4.18%

 
6/22/2015 - 5/10/2020
Westgate (5)
18,570

 
Libor + 1.75%
 
 
 
6/27/2015
Wisconsin Dells (6)
12,125

 
Libor + 2.25%
 
 
 
12/17/2022
Total Tanger's share of unconsolidated JV debt
$
123,693

 
 
 
 
 
 
(1)
The Company has an unsecured, syndicated credit line with a borrowing capacity totaling $500.0 million and a separate cash management line of credit with a borrowing capacity of $20.0 million with one of the participants in the syndication. Both lines expire on November 10, 2015. Facility fees of 25 basis points annually are charged in arrears based on the amount of the commitment.
(2)
Represents mortgages assumed in the acquisitions of various properties owned by joint ventures which are consolidated for financial reporting purposes.
(3)
The interest only mortgage loan secured by the warehouse matured on May 17, 2011 and the joint venture did not qualify for the one year extension option. As a result, on June 1, 2012 the joint venture paid down the outstanding principal balance by $500,000 to $1.8 million and entered into a Loan Forbearance Agreement with the lender whereby the lender agreed that it would not enforce its rights under the Loan Documents until the Trigger Date of October 1, 2012 unless extended. Extension of the Trigger Date was contingent among other things upon delivering a fully executed contract to sell the property to an unaffiliated third-party purchaser. Although the joint venture did not meet all of the requirements for extending the Trigger Date for the Forbearance Termination Date, it has delivered a fully executed contract to sell the property which has been approved by the lender. Through closing, the joint venture is committed to make monthly debt service payments pursuant to the Forbearance and Loan Documents at a pay rate of Libor + 1.85%. Additional interest accrues at a rate of Prime + 5.5% less the amount paid.
(4)
Represents the mortgages assumed related to the acquisition of the Saint-Sauveur, Quebec property by the RioCan joint venture in November 2012. The mortgages have a balance of $18.6 million and carry a weighted average interest rate of 5.7% and mature in 2015 and 2020, respectively.

18
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2012


(5)
On June 2012, the joint venture closed on a construction loan with the ability to borrow up to $48.3 million (our share $28.0 million), which carries an interest rate of LIBOR + 1.75%. As of December 31, 2012, the balance on the loan was $32.0 million (our share $18.6 million).
(6)
In December 2012, the joint venture closed on the refinance of its $24.3 million mortgage loan which had an initial maturity date of December 17, 2012. The refinanced interest-only, non-recourse mortgage loan has a 10 year term and carries an interest rate of LIBOR + 2.25%.



19
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2012


Future Scheduled Principal Payments (dollars in thousands)
As of December 31, 2012
Year
Tanger
Consolidated
Payments
 
Tanger's Share
of Unconsolidated
JV Payments
 
Total
Scheduled
Payments
2013
$
4,633

 
$
945

 
$
5,578

2014
3,599

 
82,666

 
86,265

2015
460,645

 
19,764

 
480,409

2016
30,279

 
343

 
30,622

2017
3,004

 
363

 
3,367

2018
3,179

 
384

 
3,563

2019
253,365

 
406

 
253,771

2020
303,561

 
5,964

 
309,525

2021
5,788

 
—

 
5,788

2022
4,430

 
12,125

 
16,555

2023 & thereafter
17,206

 
—

 
17,206

 
$
1,089,689

 
$
122,960

 
$
1,212,649

Net Premiums on Debt
3,848

 
733

 
4,581

 
$
1,093,537

 
$
123,693

 
$
1,217,230

Senior Unsecured Notes Financial Covenants (1)
As of December 31, 2012
 
Required
 
Actual
 
Compliance
Total Consolidated Debt to Adjusted Total Assets
<60%
 
47
%
 
Yes
Total Secured Debt to Adjusted Total Assets
<40%
 
5
%
 
Yes
Total Unencumbered Assets to Unsecured Debt
>135%
 
197
%
 
Yes
Consolidated Income Available for Debt Service to Annual Debt Service Charge
>1.5
 
4.49

 
Yes
(1)
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.


20
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2012


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


21
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2012