EX-99.2 3 skt8kex992march312013.htm SUPPLEMENT SKT 8K EX 99.2 March 31 2013


Exhibit 99.2
Tanger Factory Outlet Centers, Inc.
  
Supplemental Operating and Financial Data
March 31, 2013


1
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2013


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, 2012.
  
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 3/31/2013


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 March 31, 2013
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 3/31/2013


Geographic Diversification

Consolidated Properties
As of March 31, 2013
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

 
417,963

 
4
%
Ohio
1

 
411,776

 
4
%
Louisiana
1

 
318,666

 
3
%
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
%
Illinois
1

 
250,439

 
2
%
New Hampshire
1

 
245,698

 
2
%
Florida
1

 
198,877

 
2
%
Maryland
1

 
197,747

 
2
%
California
1

 
171,300

 
2
%
Maine
2

 
82,286

 
1
%
Total
36

 
10,784,157

 
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

 
58.02
%
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
%
Total
7

 
2,126,568

 
 

4
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2013


Property Summary - Occupancy at End of Each Period Shown

Consolidated properties
 
 
 
 
 
 
 
 
 
 
Location
Total GLA
3/31/13
 
% Occupied
3/31/13
 
% Occupied
12/31/12
 
% Occupied
9/30/12
 
% Occupied
6/30/12
 
% Occupied
3/31/12
Riverhead, NY
729,734

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

 
98
%
 
100
%
 
100
%
 
99
%
 
100
%
Foley, AL
557,228

 
96
%
 
97
%
 
98
%
 
97
%
 
98
%
Atlantic City, NJ
489,762

 
94
%
 
96
%
 
96
%
 
97
%
 
98
%
San Marcos, TX
441,929

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

 
99
%
 
98
%
 
99
%
 
99
%
 
97
%
Sevierville, TN
417,963

 
98
%
 
100
%
 
100
%
 
99
%
 
99
%
Jeffersonville, OH
411,776

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

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

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

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

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

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

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

 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
Gonzales, LA
318,666

 
99
%
 
100
%
 
100
%
 
100
%
 
99
%
Branson, MO
302,922

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

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

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

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

 
98
%
 
99
%
 
98
%
 
97
%
 
95
%
Lancaster, PA
254,002

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

 
94
%
 
91
%
 
91
%
 
90
%
 
90
%
Hershey, PA
247,448

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

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

 
97
%
 
100
%
 
100
%
 
100
%
 
100
%
Fort Myers, FL
198,877

 
94
%
 
94
%
 
93
%
 
89
%
 
92
%
Ocean City, MD
197,747

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

 
97
%
 
96
%
 
94
%
 
94
%
 
94
%
Hilton Head I, SC
177,199

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

 
94
%
 
100
%
 
100
%
 
100
%
 
100
%
West Branch, MI
112,570

 
95
%
 
100
%
 
100
%
 
100
%
 
96
%
Blowing Rock, NC
104,154

 
99
%
 
99
%
 
97
%
 
97
%
 
98
%
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
10,784,157

 
98
%
 
99
%
 
99
%
 
98
%
 
97
%




5
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2013


Unconsolidated joint venture properties
 
 
 
 
 
 
 
 
 
 
Location
Total GLA
3/31/13
 
% Occupied
3/31/13
 
% Occupied
12/31/12
 
% Occupied
9/30/12
 
% Occupied
6/30/12

 
% Occupied
3/31/12

Deer Park, NY
741,981

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

 
97
%
 
97
%
 
N/A

 
N/A

 
N/A

Glendale, AZ
332,234

 
95
%
 
94
%
 
N/A

 
N/A

 
N/A

Wisconsin Dells, WI
265,086

 
100
%
 
98
%
 
98
%
 
99
%
 
98
%
Bromont, QC
162,943

 
89
%
 
89
%
 
N/A

 
N/A

 
N/A

Cookstown, ON
155,522

 
97
%
 
100
%
 
100
%
 
99
%
 
91
%
Saint-Sauveur, QC
116,097

 
100
%
 
100
%
 
N/A

 
N/A

 
N/A





6
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2013


Portfolio Occupancy at the End of Each Period (1)
(1)
Excludes seven unconsolidated outlet centers. See table on 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 3/31/2013


Major Tenants (1)
Ten Largest Tenants as of March 31, 2013
Tenant
# of
Stores

 
GLA

 
% of
Total GLA

The Gap, Inc.
80

 
853,525

 
7.9
%
Phillips-Van Heusen
128

 
669,500

 
6.2
%
Dress Barn, Inc.
89

 
521,625

 
4.8
%
VF Outlet, Inc.
42

 
375,742

 
3.5
%
Nike
34

 
365,440

 
3.4
%
Adidas
40

 
305,470

 
2.8
%
Ann Taylor
43

 
300,468

 
2.8
%
Polo Ralph Lauren
29

 
286,851

 
2.7
%
Carter's
59

 
276,641

 
2.6
%
Hanesbrands Direct, LLC
41

 
239,503

 
2.2
%
Total of All Listed Above
585

 
4,194,765

 
38.9
%
(1)
Excludes seven unconsolidated outlet centers. See table on page 4.





8
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2013


Lease Expirations as of March 31, 2013


(1)
Excludes seven unconsolidated outlet centers. See table on page 4.

9
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2013


Leasing Activity (1)
 
3/31/2013
 
6/30/2013
 
9/30/2013
 
12/31/2013
 
Year to Date
 
Prior
Year to
Date
Re-tenanted Space:
 
 
 
 
 
 
 
 
 

 
 

Number of leases
90

 

 

 

 
90

 
60

Gross leasable area
293,535

 

 

 

 
293,535

 
220,237

New initial base rent per square foot
$
26.97

 

 

 

 
$
26.97

 
$
30.01

Prior expiring base rent per square foot
$
23.35

 

 

 

 
$
23.35

 
$
20.84

Percent increase
15.5
%
 

 

 

 
15.5
%
 
44.0
%
 
 
 
 
 
 
 
 
 
 
 
 
New straight line base rent per square foot
$
29.76

 

 

 

 
$
29.76

 
$
32.53

Prior straight line base rent per square foot
$
22.52

 

 

 

 
$
22.52

 
$
20.60

Percent increase
32.2
%
 

 

 

 
32.2
%
 
57.9
%
 
 
 
 
 
 
 
 
 
 
 
 
Renewed Space:
 
 
 
 
 
 
 
 
 
 
 
Number of leases
231

 

 

 

 
231

 
188

Gross leasable area
1,135,107

 

 

 

 
1,135,107

 
920,436

New initial base rent per square foot
$
22.37

 

 

 

 
$
22.37

 
$
21.27

Prior expiring base rent per square foot
$
19.99

 

 

 

 
$
19.99

 
$
19.38

Percent increase
11.9
%
 

 

 

 
11.9
%
 
9.7
%
 
 
 
 
 
 
 
 
 
 
 
 
New straight line base rent per square foot
$
23.17

 

 

 

 
$
23.17

 
$
21.97

Prior straight line base rent per square foot
$
19.64

 

 

 

 
$
19.64

 
$
19.18

Percent increase
18.0
%
 

 

 

 
18.0
%
 
14.5
%
 
 
 
 
 
 
 
 
 
 
 
 
Total Re-tenanted and Renewed Space:
 
 
 
 
 
 
 
 
 
 
 
Number of leases
321

 

 

 

 
321

 
248

Gross leasable area
1,428,642

 

 

 

 
1,428,642

 
1,140,673

New initial base rent per square foot
$
23.32

 

 

 

 
$
23.32

 
$
22.96

Prior expiring base rent per square foot
$
20.68

 

 

 

 
$
20.68

 
$
19.66

Percent increase
12.6
%
 

 

 

 
12.6
%
 
16.7
%
 
 
 
 
 
 
 
 
 
 
 
 
New straight line base rent per square foot
$
24.52

 

 

 

 
$
24.52

 
$
24.01

Prior straight line base rent per square foot
$
20.23

 

 

 

 
$
20.23

 
$
19.46

Percent increase
21.2
%
 

 

 

 
21.2
%
 
23.4
%
(1)
Excludes seven unconsolidated outlet centers. See table on page 4.

10
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2013


Consolidated Balance Sheets (dollars in thousands)
 
3/31/2013
 
12/31/2012
 
9/30/2012
 
6/30/2012
 
3/31/2012
ASSETS
 
 
 
 
 
 
 
 
 
Rental property
 
 
 
 
 
 
 

 
 

Land
$
148,002

 
$
148,002

 
$
148,002

 
$
148,002

 
$
148,002

Buildings, improvements and fixtures
1,802,160

 
1,796,042

 
1,793,963

 
1,787,050

 
1,773,055

Construction in progress
6,336

 
3,308

 
—

 
—

 
4,545

 
1,956,498

 
1,947,352

 
1,941,965

 
1,935,052

 
1,925,602

Accumulated depreciation
(600,713
)
 
(582,859
)
 
(565,521
)
 
(547,167
)
 
(530,150
)
Total rental property, net
1,355,785

 
1,364,493

 
1,376,444

 
1,387,885

 
1,395,452

Cash and cash equivalents
2,691

 
10,335

 
9,511

 
11,855

 
10,787

Investments in unconsolidated joint ventures
133,982

 
126,632

 
82,676

 
72,394

 
48,483

Deferred lease costs and other intangibles, net
97,328

 
101,040

 
104,496

 
109,850

 
115,157

Deferred debt origination costs, net
8,534

 
9,083

 
9,619

 
10,219

 
10,775

Prepaids and other assets
63,353

 
60,842

 
56,211

 
50,172

 
54,304

Total assets
$
1,661,673

 
$
1,672,425

 
$
1,638,957

 
$
1,642,375

 
$
1,634,958

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
Debt
 
 
 
 
 
 
 
 
 
Senior, unsecured notes, net of discounts
$
548,103

 
$
548,033

 
$
547,964

 
$
547,896

 
$
547,829

Unsecured term loans, net of discounts
259,491

 
259,453

 
259,416

 
259,380

 
259,344

Mortgages payable, including premiums
105,346

 
107,745

 
108,672

 
109,583

 
110,483

Unsecured lines of credit
174,917

 
178,306

 
136,769

 
141,224

 
121,073

Total debt
1,087,857

 
1,093,537

 
1,052,821

 
1,058,083

 
1,038,729

Construction trade payables
7,744

 
7,084

 
10,525

 
14,746

 
15,698

Accounts payable & accruals
37,957

 
41,149

 
46,087

 
38,011

 
43,165

Other liabilities
16,676

 
16,780

 
16,429

 
16,283

 
16,399

Total liabilities
1,150,234

 
1,158,550

 
1,125,862

 
1,127,123

 
1,113,991

Commitments and contingencies
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
Tanger Factory Outlet Centers, Inc.
 
 
 
 
 
 
 
 
 
Common shares
944

 
941

 
939

 
935

 
926

Paid in capital
768,702

 
766,056

 
762,821

 
758,381

 
751,633

Accumulated distributions in excess of net income
(289,880
)
 
(285,588
)
 
(283,943
)
 
(279,657
)
 
(271,941
)
Accumulated other comprehensive income
1,179

 
1,200

 
1,252

 
1,405

 
1,449

  Equity attributable to Tanger Factory Outlet
  Centers, Inc.
480,945

 
482,609

 
481,069

 
481,064

 
482,067

Equity attributable to noncontrolling interests
 
 
 
 
 
 
 
 
 
Noncontrolling interests in Operating Partnership
24,184

 
24,432

 
25,218

 
27,386

 
32,068

Noncontrolling interest in other consolidated partnerships
6,310

 
6,834

 
6,808

 
6,802

 
6,832

Total equity
511,439

 
513,875

 
513,095

 
515,252

 
520,967

Total liabilities and equity
$
1,661,673

 
$
1,672,425

 
$
1,638,957

 
$
1,642,375

 
$
1,634,958


11
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2013


Consolidated Statements of Operations (dollars and shares in thousands)
 
 
 
Three Months Ended
 
YTD
 
3/31/13
 
12/31/12
 
9/30/12
 
6/30/12
 
3/31/12
 
 
3/31/13
 
3/31/12
REVENUES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Base rentals
$
59,244

 
$
59,769

 
$
59,662

 
$
58,583

 
$
57,219

 
 
$
59,244

 
$
57,219

Percentage rentals
2,017

 
4,630

 
3,180

 
1,618

 
1,744

 
 
2,017

 
1,744

Expense reimbursements
25,306

 
27,333

 
24,908

 
25,196

 
23,673

 
 
25,306

 
23,673

Other income
2,122

 
3,204

 
2,733

 
1,938

 
1,607

 
 
2,122

 
1,607

Total revenues
88,689

 
94,936

 
90,483

 
87,335

 
84,243

 
 
88,689

 
84,243

EXPENSES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property operating
28,135

 
29,481

 
27,614

 
27,977

 
26,088

 
 
28,135

 
26,088

General & administrative
9,572

 
9,715

 
9,018

 
8,699

 
10,020

 
 
9,572

 
10,020

Acquisition costs
179

 
117

 
—

 
—

 
—

 
 
179

 
—

Depreciation and amortization
22,288

 
23,436

 
24,809

 
24,923

 
25,515

 
 
22,288

 
25,515

Total expenses
60,174

 
62,749

 
61,441

 
61,599

 
61,623

 
 
60,174

 
61,623

Operating income
28,515

 
32,187

 
29,042

 
25,736

 
22,620

 
 
28,515

 
22,620

Interest expense
12,876

 
12,752

 
12,317

 
12,411

 
12,334

 
 
12,876

 
12,334

Income before equity in losses of unconsolidated joint ventures
15,639

 
19,435

 
16,725

 
13,325

 
10,286

 
 
15,639

 
10,286

Equity in earnings (losses) of unconsolidated joint ventures
590

 
(421
)
 
(555
)
 
(867
)
 
(1,452
)
 
 
590

 
(1,452
)
Net income
16,229

 
19,014

 
16,170

 
12,458

 
8,834

 
 
16,229

 
8,834

Noncontrolling interests in Operating Partnership
(789
)
 
(952
)
 
(836
)
 
(766
)
 
(713
)
 
 
(789
)
 
(713
)
Noncontrolling interests in other consolidated partnerships
(1
)
 
(6
)
 
(7
)
 
25

 
7

 
 
(1
)
 
7

Net income attributable to Tanger Factory Outlet Centers, Inc.
15,439

 
18,056

 
15,327

 
11,717

 
8,128

 
 
15,439

 
8,128

Allocation to participating securities
(194
)
 
(208
)
 
(209
)
 
(209
)
 
(158
)
 
 
(194
)
 
(158
)
Net income available to common shareholders
$
15,245

 
$
17,848

 
$
15,118

 
$
11,508

 
$
7,970

 
 
$
15,245

 
$
7,970

Basic earnings per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
0.16

 
$
0.19

 
$
0.16

 
$
0.13

 
$
0.09

 
 
$
0.16

 
$
0.09

Diluted earnings per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
0.16

 
$
0.19

 
$
0.16

 
$
0.12

 
$
0.09

 
 
$
0.16

 
$
0.09

Weighted average common shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
93,132

 
92,845

 
92,674

 
91,717

 
89,671

 
 
93,132

 
89,671

Diluted
94,043

 
93,807

 
93,647

 
92,816

 
90,832

 
 
94,043

 
90,832





12
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2013


FFO and FAD Analysis (dollars and shares in thousands)
 
 
 
Three Months Ended
 
YTD
 
3/31/13
 
12/31/12
 
9/30/12
 
6/30/12
 
3/31/12
 
 
3/31/13
 
3/31/12
Funds from operations:
 
 
 
 
 
 
 
 
 
 
 
 

 
 

Net income
$
16,229

 
$
19,014

 
$
16,170

 
$
12,458

 
$
8,834

 
 
$
16,229

 
$
8,834

Adjusted for -
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization uniquely significant to real estate - consolidated properties
22,043

 
23,217

 
24,532

 
24,710

 
25,301

 
 
22,043

 
25,301

Depreciation and amortization uniquely significant to real estate - unconsolidated joint ventures
3,173

 
2,996

 
1,641

 
1,653

 
1,815

 
 
3,173

 
1,815

Impairment charge - unconsolidated joint ventures
—

 
—

 
—

 
140

 
—

 
 
—

 
—

Funds from operations
41,445

 
45,227

 
42,343

 
38,961

 
35,950

 
 
41,445

 
35,950

FFO attributable to noncontrolling interests in other consolidated partnerships
(7
)
 
(36
)
 
(4
)
 
16

 
(2
)
 
 
(7
)
 
(2
)
Allocation to participating securities
(425
)
 
(451
)
 
(425
)
 
(391
)
 
(308
)
 
 
(425
)
 
(308
)
Funds from operations available to
    common shareholders
$
41,013

 
$
44,740

 
$
41,914

 
$
38,586

 
$
35,640

 
 
$
41,013

 
$
35,640

Funds from operations per share
$
0.42

 
$
0.45

 
$
0.42

 
$
0.39

 
$
0.36

 
 
$
0.42

 
$
0.36

Funds available for distribution to common shareholders:
 
 

 
 

 
 
 
 
 

Funds from operations
$
41,013

 
$
44,740

 
$
41,914

 
$
38,586

 
$
35,640

 
 
$
41,013

 
$
35,640

Adjusted for -
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate depreciation excluded above
245

 
219

 
276

 
214

 
214

 
 
245

 
214

Amortization of finance costs
603

 
591

 
576

 
585

 
561

 
 
603

 
561

Amortization of net debt discount (premium)
(261
)
 
(254
)
 
(253
)
 
(252
)
 
(248
)
 
 
(261
)
 
(248
)
Amortization of share-based compensation
2,460

 
2,338

 
2,339

 
2,313

 
3,306

 
 
2,460

 
3,306

Straight line rent adjustment
(1,087
)
 
(783
)
 
(1,009
)
 
(860
)
 
(997
)
 
 
(1,087
)
 
(997
)
Market rent adjustment
(27
)
 
141

 
(59
)
 
(196
)
 
(234
)
 
 
(27
)
 
(234
)
2nd generation tenant allowances
(1,885
)
 
(5,901
)
 
(1,297
)
 
(3,179
)
 
(5,537
)
 
 
(1,885
)
 
(5,537
)
Capital improvements
(2,882
)
 
(1,410
)
 
(2,951
)
 
(2,500
)
 
(891
)
 
 
(2,882
)
 
(891
)
Adjustments from unconsolidated joint ventures
(30
)
 
17

 
257

 
78

 
168

 
 
(30
)
 
168

Funds available for distribution
$
38,149

 
$
39,698

 
$
39,793

 
$
34,789

 
$
31,982

 
 
$
38,149

 
$
31,982

Funds available for distribution
   per share
$
0.39

 
$
0.40

 
$
0.40

 
$
0.35

 
$
0.32

 
 
$
0.39

 
$
0.32

Dividends paid per share
$
0.21

 
$
0.21

 
$
0.21

 
$
0.21

 
$
0.20

 
 
$
0.21

 
$
0.20

FFO payout ratio
50
%
 
47
%
 
50
%
 
54
%
 
56
%
 
 
50
%
 
56
%
FAD payout ratio
54
%
 
53
%
 
53
%
 
60
%
 
63
%
 
 
54
%
 
63
%
Diluted weighted average common shs.
98,798

 
98,699

 
98,699

 
98,812

 
98,690

 
 
98,798

 
98,690


13
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2013



Unconsolidated Joint Venture Information

The following table details certain information as of March 31, 2013, except for Net Operating Income ("NOI") which is for the three months ended March 31, 2013, 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

 
$
87.5

 
$
1.7

 
$
82.3

 
 
 
 
 
 
 
 
 
 
 
 
 
Galveston/Houston
 
Texas City, TX
 
50.0
%
 
352,705

 
42.5

 
1.1

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
National Harbor (1)
 
Washington D.C.
Metro Area
 
50.0
%
 
—

 
3.9

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
RioCan Canada (2)
 
Various
 
50.0
%
 
434,562

 
78.4

 
1.0

 
9.8

 
 
 
 
 
 
 
 
 
 
 
 
 
Westgate
 
Glendale, AZ
 
58.0
%
 
332,234

 
43.6

 
1.1

 
22.4

 
 
 
 
 
 
 
 
 
 
 
 
 
Wisconsin Dells
 
Wisconsin Dells, WI
 
50.0
%
 
265,086

 
15.1

 
0.5

 
12.1

 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
0.2

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
$
271.2

 
$
5.4

 
$
126.6

(1)
Center is currently under development.
(2)
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.



14
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2013


Unconsolidated Joint Venture Information
Summary Combined Balance Sheets (dollars in thousands)
 
3/31/2013
 
12/31/2012
 
9/30/2012
 
6/30/2012
 
3/31/2012
 
 
 
Tanger's Share as of 3/31/13
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Land
$
95,748

 
$
96,455

 
$
64,321

 
$
63,269

 
$
64,640

 
 
 
$
41,144

Buildings, improvements and fixtures
495,958

 
493,424

 
295,593

 
295,020

 
296,605

 
 
 
212,808

Construction in progress, including land
21,974

 
16,338

 
127,379

 
99,310

 
46,151

 
 
 
10,988

 
613,680

 
606,217

 
487,293

 
457,599

 
407,396

 
 
 
264,940

Accumulated depreciation
(68,667
)
 
(62,547
)
 
(57,067
)
 
(53,192
)
 
(50,039
)
 
 
 
(26,246
)
Total rental property, net
545,013

 
543,670

 
430,226

 
404,407

 
357,357

 
 
 
238,694

Assets held for sale (1)
—

 
1,828

 
1,821

 
1,800

 
—

 
 
 
—

Cash and cash equivalents
20,531

 
21,879

 
10,778

 
16,855

 
9,621

 
 
 
10,150

Deferred lease costs, net
23,080

 
24,411

 
13,586

 
13,514

 
14,294

 
 
 
11,356

Deferred debt origination costs, net
4,399

 
5,213

 
5,773

 
6,566

 
6,626

 
 
 
1,685

Prepaids and other assets
24,900

 
25,350

 
21,396

 
16,386

 
15,663

 
 
 
9,316

Total assets
$
617,923

 
$
622,351

 
$
483,580

 
$
459,528

 
$
403,561


 
 
$
271,201

 
 
 
 
 
 

 
 

 
 

 
 
 
 

Liabilities & Owners' Equity
 
 
 
 
 

 
 

 
 

 
 
 
 

Mortgages payable
$
329,262

 
$
325,192

 
$
288,978

 
$
273,034

 
$
273,534

 
 
 
$
126,557

Construction trade payables
14,232

 
21,734

 
14,506

 
23,135

 
7,719

 
 
 
7,306

Accounts payable & other liabilities
16,726

 
31,944

 
26,125

 
25,641

 
24,788

 
 
 
6,650

Total liabilities
360,220

 
378,870

 
329,609

 
321,810

 
306,041


 
 
140,513

Owners' equity
257,703

 
243,481

 
153,971

 
137,718

 
97,520

 
 
 
130,688

Total liabilities & owners' equity
$
617,923

 
$
622,351

 
$
483,580

 
$
459,528

 
$
403,561


 
 
$
271,201

(1)
Assets related to our Deer Park Warehouse joint venture, which were sold in March 2013.

15
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2013


Unconsolidated Joint Venture Information
Summary Combined Statements of Operations (dollars in thousands)
 
Three Months Ended
 
YTD
 
3/31/13
 
12/31/12
 
9/30/12
 
6/30/12
 
3/31/12
 
 
 
3/31/13
 
3/31/12
Revenues
$
21,395

 
$
19,687

 
$
11,985

 
$
11,606

 
$
11,658

 
 
 
$
21,395

 
$
11,658

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property operating
8,803

 
9,183

 
5,521

 
5,083

 
4,891

 
 
 
8,803

 
4,891

General & administrative
485

 
205

 
365

 
237

 
163

 
 
 
485

 
163

Acquisition costs
421

 
733

 
—

 
—

 
704

 
 
 
421

 
704

Abandoned development costs
—

 
57

 
—

 
436

 
954

 
 
 
—

 
954

Impairment charge
—

 
—

 
—

 
420

 
—

 
 
 
—

 
—

Depreciation & amortization
7,384

 
6,723

 
4,283

 
4,300

 
4,608

 
 
 
7,384

 
4,608

Total expenses
17,093

 
16,901

 
10,169

 
10,476

 
11,320

 
 
 
17,093

 
11,320

Operating income
4,302

 
2,786

 
1,816

 
1,130

 
338

 


4,302

 
338

Interest expense
4,052

 
3,793

 
3,540

 
3,598

 
3,829

 
 
 
4,052

 
3,829

Net income (loss)
$
250

 
$
(1,007
)
 
$
(1,724
)
 
$
(2,468
)
 
$
(3,491
)
 


$
250

 
$
(3,491
)
Tanger's share of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenues less property operating and general & administrative expenses ("NOI")
$
5,443

 
$
4,326

 
$
2,303

 
$
2,379

 
$
2,526

 
 
 
$
5,443

 
$
2,526

Net income (loss)
$
590

 
$
(421
)
 
$
(555
)
 
$
(867
)
 
$
(1,452
)
 
 
 
$
590

 
$
(1,452
)
Depreciation and impairments (real estate related)
$
3,173

 
$
2,996

 
$
1,641

 
$
1,793

 
$
1,815

 
 
 
$
3,173

 
$
1,815


16
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2013



External Growth Pipeline Summary
Represents Tanger's expectations as of April 30, 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%
2Q 2014
Sevierville, TN
20
$3 - $4
100%
11.5% - 12.5%
3Q 2013
 
 
 
 
 
 
 
CANADA:
 
 
 
 
 
New development
 
 
 
 
 
Kanata, ON (Ottawa)
293
$115 - $125
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)
While actual returns for individual projects may vary, the company's current targeted stabilized return on cost for development projects is 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 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.
 
 
 
 
 
 
 
Company estimates, projections and judgments with respect to approximate size, projected total cost, Tanger share, projected return, and return on cost for development and expansion projects are subject to adjustment prior to and during the development process. There are risks inherent to real estate development, 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 3/31/2013


Debt Outstanding Summary (dollars in thousands)
As of March 31, 2013
 
Principal
Balance
 
Stated
Interest Rate
 
Effective Interest Rate
 
Maturity
Date
Unsecured debt:
 

 
 
 
 
 
 
Unsecured lines of credit (1)
$
174,917

 
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
(2,406
)
 
 
 
 
 
 
Total unsecured debt
982,511

 
 
 
 
 
 
Secured mortgage debt: (2)
 
 
 
 
 
 
 
Atlantic City, NJ (including premium of $4,385)
54,731

 
5.14% - 7.65%
 
5.05
%
 
11/15/2021 - 12/8/2026
Ocean City, MD (including premium of $263)
18,714

 
5.24%
 
4.68
%
 
1/6/2016
Hershey, PA (including premium of $1,437)
31,901

 
5.17% - 8.00%
 
3.40
%
 
8/1/2015
Total secured mortgage debt
105,346

 
 
 
 
 
 
Tanger's share of unconsolidated JV debt:
 

 
 
 
 
 
 
Deer Park (3)
82,315

 
Libor +
 3.50 - 5.00%
 
 
 
5/17/2014
RioCan Canada (including premium of $695) (4)
9,759

 
5.10% - 5.75%
 
3.93% - 4.18%

 
6/22/2015 - 5/10/2020
Westgate (5)
22,358

 
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
$
126,557

 
 
 
 
 
 
(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)
In December 2011, the joint venture refinanced its mortgage and mezzanine loans, totaling $246.9 million. The interest rates for the mortgage and mezzanine loans are LIBOR + 3.50% and LIBOR + 5.00%, respectively and both loans mature on May 17, 2014. The loans require certain financial covenants, such as debt service coverage and loan to value ratios, to be met at various measurement dates. Based on the administrative agent bank's calculation of Deer Park's debt service coverage ratio utilizing financial information as of December 31, 2012, the joint venture was not in compliance with the coverage ratio. As a result, on March 22, 2013, the lender group placed Deer Park in default. The managing member of Deer Park continues to work with the administrative agent bank of the lender group to negotiate a resolution.
(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 $18.1 million and carry a weighted average interest rate of 5.7% and mature in 2015 and 2020, respectively.
(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 March 31, 2013, the balance on the loan was $38.5 million (our share $22.4 million).

18
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2013


(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 3/31/2013


Future Scheduled Principal Payments (dollars in thousands)
As of March 31, 2013
Year
Tanger
Consolidated
Payments
 
Tanger's Share
of Unconsolidated
JV Payments
 
Total
Scheduled
Payments
2013
$
2,564

 
$
245

 
$
2,809

2014
3,603

 
82,658

 
86,261

2015
457,260

 
23,528

 
480,788

2016
30,283

 
335

 
30,618

2017
3,008

 
356

 
3,364

2018
3,183

 
376

 
3,559

2019
253,369

 
398

 
253,767

2020
303,566

 
5,841

 
309,407

2021
5,793

 
—

 
5,793

2022
4,436

 
12,125

 
16,561

2023 & thereafter
17,113

 
—

 
17,113

 
$
1,084,178

 
$
125,862

 
$
1,210,040

Net Premiums on Debt
3,679

 
695

 
4,374

 
$
1,087,857

 
$
126,557

 
$
1,214,414

Senior Unsecured Notes Financial Covenants (1)
As of March 31, 2013
 
Required
 
Actual
 
Compliance
Total Consolidated Debt to Adjusted Total Assets
<60%
 
46
%
 
Yes
Total Secured Debt to Adjusted Total Assets
<40%
 
5
%
 
Yes
Total Unencumbered Assets to Unsecured Debt
>135%
 
198
%
 
Yes
Consolidated Income Available for Debt Service to Annual Debt Service Charge
>1.5
 
4.58

 
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 3/31/2013


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 3/31/2013