EX-99.2 3 skt8kex992dec312013.htm EXHIBIT SKT 8K EX 99.2 Dec 31 2013


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


1
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2013


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 and for the fiscal year ended December 31, 2013 (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 12/31/2013


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 December 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 12/31/2013


Geographic Diversification

Consolidated Properties
As of December 31, 2013
State
# of Centers
 
GLA
 
% of GLA
South Carolina
5

 
1,576,888

 
14
%
New York
2

 
1,471,715

 
13
%
Pennsylvania
3

 
874,474

 
8
%
Georgia
2

 
691,582

 
6
%
Texas
2

 
619,729

 
5
%
Delaware
1

 
564,593

 
5
%
Alabama
1

 
557,014

 
5
%
North Carolina
3

 
505,225

 
4
%
New Jersey
1

 
489,762

 
4
%
Tennessee
1

 
438,076

 
4
%
Michigan
2

 
437,222

 
4
%
Ohio
1

 
411,776

 
4
%
Louisiana
1

 
318,666

 
3
%
Missouri
1

 
302,922

 
3
%
Utah
1

 
298,391

 
2
%
Connecticut
1

 
289,898

 
2
%
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

 
198,840

 
2
%
California
1

 
171,300

 
1
%
Maine
2

 
76,356

 
1
%
Total
37

 
11,536,885

 
100
%
Unconsolidated Joint Venture Properties
 
# of Centers
 
GLA
 
Ownership %
Texas City, TX
1

 
352,705

 
50.00
%
Washington D.C.
1

 
336,286

 
50.00
%
Glendale, AZ
1

 
331,739

 
58.00
%
Wisconsin Dells, WI
1

 
265,086

 
50.00
%
Bromont, QC
1

 
161,617

 
50.00
%
Cookstown, ON
1

 
155,522

 
50.00
%
Saint-Sauveur, QC
1

 
115,697

 
50.00
%
Total
7

 
1,718,652

 
 

4
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2013


Property Summary - Occupancy at End of Each Period Shown

Consolidated properties
 
 
 
 
 
 
 
 
 
 
Location
Total GLA
12/31/13
 
% Occupied
12/31/13
 
% Occupied
9/30/13
 
% Occupied
6/30/13
 
% Occupied
3/31/13
 
% Occupied
12/31/12
Deer Park, NY
741,981

 
95
%
 
95
%
 
N/A

 
N/A

 
N/A

Riverhead, NY
729,734

 
100
%
 
100
%
 
99
%
 
98
%
 
100
%
Rehoboth Beach, DE
564,593

 
100
%
 
100
%
 
97
%
 
98
%
 
100
%
Foley, AL
557,014

 
97
%
 
98
%
 
95
%
 
96
%
 
97
%
Atlantic City, NJ
489,762

 
96
%
 
95
%
 
94
%
 
94
%
 
96
%
San Marcos, TX
441,929

 
100
%
 
99
%
 
99
%
 
99
%
 
100
%
Sevierville, TN
438,076

 
99
%
 
99
%
 
99
%
 
98
%
 
100
%
Myrtle Beach Hwy 501, SC
425,247

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

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

 
100
%
 
99
%
 
99
%
 
100
%
 
100
%
Pittsburgh, PA
372,972

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

 
99
%
 
99
%
 
99
%
 
100
%
 
100
%
Charleston, SC
365,107

 
100
%
 
100
%
 
98
%
 
97
%
 
100
%
Howell, MI
324,652

 
99
%
 
99
%
 
100
%
 
98
%
 
96
%
Locust Grove, GA
321,070

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

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

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

 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
Park City, UT
298,391

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

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

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

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

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

 
92
%
 
95
%
 
95
%
 
94
%
 
91
%
Hershey, PA
247,500

 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
Tilton, NH
245,698

 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
Hilton Head II, SC
206,544

 
100
%
 
100
%
 
98
%
 
97
%
 
100
%
Fort Myers, FL
198,877

 
94
%
 
91
%
 
88
%
 
94
%
 
94
%
Ocean City, MD
198,840

 
100
%
 
100
%
 
97
%
 
89
%
 
93
%
Terrell, TX
177,800

 
99
%
 
99
%
 
97
%
 
97
%
 
96
%
Hilton Head I, SC
177,199

 
98
%
 
99
%
 
100
%
 
100
%
 
100
%
Barstow, CA
171,300

 
100
%
 
100
%
 
95
%
 
94
%
 
100
%
West Branch, MI
112,570

 
100
%
 
98
%
 
98
%
 
95
%
 
100
%
Blowing Rock, NC
104,154

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

 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
Kittery I, ME
51,737

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

 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
Total
11,536,885

 
99
%
 
99
%
 
98
%
 
98
%
 
99
%




5
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2013


Unconsolidated joint venture properties
 
 
 
 
 
 
 
 
 
 
Location
Total GLA
12/31/13
 
% Occupied
12/31/13
 
% Occupied
9/30/13
 
% Occupied
6/30/13
 
% Occupied
3/31/13
 
% Occupied
12/31/12
Deer Park, NY (1)
741,981

 
N/A

 
N/A

 
94
%
 
92
%
 
93
%
Texas City, TX
352,705

 
100
%
 
100
%
 
97
%
 
97
%
 
97
%
Washington D.C.
336,286

 
99
%
 
N/A

 
N/A

 
N/A

 
N/A

Glendale, AZ
331,739

 
100
%
 
100
%
 
97
%
 
95
%
 
94
%
Wisconsin Dells, WI
265,086

 
100
%
 
100
%
 
100
%
 
100
%
 
98
%
Bromont, QC
161,617

 
84
%
 
93
%
 
92
%
 
89
%
 
89
%
Cookstown, ON
155,522

 
100
%
 
95
%
 
99
%
 
97
%
 
100
%
Saint-Sauveur, QC
115,697

 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
(1)
The Company acquired a controlling interest in the Deer Park, NY center on August 30, 2013. The center is now reported above in the section labeled consolidated properties.





6
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2013


Portfolio Occupancy at End of Each Period (1)

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




7
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2013


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

 
GLA

 
% of
Total GLA

The Gap, Inc.
84

 
903,879

 
7.8
%
Dress Barn, Inc.
90

 
525,798

 
4.5
%
Phillips-Van Heusen
98

 
486,827

 
4.2
%
VF Outlet, Inc.
45

 
393,966

 
3.4
%
Nike
37

 
392,570

 
3.4
%
G-III Apparel
69

 
340,497

 
3.0
%
Ann Taylor
47

 
321,229

 
2.8
%
Polo Ralph Lauren
31

 
315,549

 
2.7
%
Adidas
42

 
297,693

 
2.6
%
Carter's
61

 
286,554

 
2.5
%
Total of All Listed Above
604

 
4,264,562

 
36.9
%
(1)
Excludes unconsolidated outlet centers. See table on page 4.





8
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2013


Lease Expirations as of December 31, 2013


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

9
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2013


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

 
28

 
36

 
—

 
154

 
136

Gross leasable area
293,535

 
92,258

 
124,562

 
—

 
510,355

 
449,853

New initial base rent per square foot
$
26.97

 
$
25.27

 
$
30.92

 
$
—

 
$
27.63

 
$
29.22

Prior expiring base rent per square foot
$
23.35

 
$
21.32

 
$
22.72

 
$
—

 
$
22.83

 
$
21.04

Percent increase
15.5
%
 
18.5
%
 
36.1
%
 
—

 
21.0
%
 
38.9
%
 
 
 
 
 
 
 
 
 
 
 
 
New straight line base rent per square foot
$
29.76

 
$
27.76

 
$
34.56

 
$
—

 
$
30.57

 
$
31.72

Prior straight line base rent per square foot
$
22.52

 
$
20.50

 
$
22.68

 
$
—

 
$
22.19

 
$
20.60

Percent increase
32.2
%
 
35.4
%
 
52.4
%
 
—

 
37.8
%
 
54.0
%
 
 
 
 
 
 
 
 
 
 
 
 
Renewed Space:
 
 
 
 
 
 
 
 
 
 
 
Number of leases
231

 
32

 
43

 
35

 
341

 
322

Gross leasable area
1,135,107

 
153,344

 
168,522

 
117,187

 
1,574,160

 
1,536,212

New initial base rent per square foot
$
22.37

 
$
21.85

 
$
25.85

 
$
26.69

 
$
23.02

 
$
20.94

Prior expiring base rent per square foot
$
19.99

 
$
19.49

 
$
23.81

 
$
21.38

 
$
20.45

 
$
19.02

Percent increase
11.9
%
 
12.1
%
 
8.6
%
 
24.8
%
 
12.5
%
 
10.1
%
 
 
 
 
 
 
 
 
 
 
 
 
New straight line base rent per square foot
$
23.17

 
$
22.70

 
$
27.38

 
$
28.28

 
$
23.96

 
$
21.75

Prior straight line base rent per square foot
$
19.64

 
$
18.54

 
$
23.98

 
$
20.91

 
$
20.09

 
$
18.70

Percent increase
18.0
%
 
22.4
%
 
14.2
%
 
35.3
%
 
19.3
%
 
16.3
%
 
 
 
 
 
 
 
 
 
 
 
 
Total Re-tenanted and Renewed Space:
 
 
 
 
 
 
 
 
 
 
 
Number of leases
321

 
60

 
79

 
35

 
495

 
458

Gross leasable area
1,428,642

 
245,602

 
293,084

 
117,187

 
2,084,515

 
1,986,065

New initial base rent per square foot
$
23.32

 
$
23.13

 
$
28.00

 
$
26.69

 
$
24.15

 
$
22.82

Prior expiring base rent per square foot
$
20.68

 
$
20.18

 
$
23.35

 
$
21.38

 
$
21.03

 
$
19.48

Percent increase
12.6
%
 
14.7
%
 
20.0
%
 
24.8
%
 
14.8
%
 
17.1
%
 
 
 
 
 
 
 
 
 
 
 
 
New straight line base rent per square foot
$
24.52

 
$
24.60

 
$
30.43

 
$
28.28

 
$
25.58

 
$
24.01

Prior straight line base rent per square foot
$
20.23

 
$
19.28

 
$
23.43

 
$
20.91

 
$
20.60

 
$
19.13

Percent increase
21.2
%
 
27.6
%
 
29.9
%
 
35.3
%
 
24.1
%
 
25.5
%
(1)
Excludes unconsolidated outlet centers. See table on page 4.

10
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2013


Consolidated Balance Sheets (dollars in thousands)
 
12/31/2013
 
9/30/2013
 
6/30/2013
 
3/31/2013
 
12/31/2012
ASSETS
 
 
 
 
 
 
 
 
 
Rental property
 
 
 
 
 
 
 
 
 
Land
$
230,415

 
$
230,417

 
$
148,003

 
$
148,002

 
$
148,002

Buildings, improvements and fixtures
2,009,971

 
2,004,882

 
1,821,404

 
1,802,160

 
1,796,042

Construction in progress
9,433

 
4,375

 
2,531

 
6,336

 
3,308

 
2,249,819

 
2,239,674

 
1,971,938

 
1,956,498

 
1,947,352

Accumulated depreciation
(654,631
)
 
(636,035
)
 
(618,644
)
 
(600,713
)
 
(582,859
)
Total rental property, net
1,595,188

 
1,603,639

 
1,353,294

 
1,355,785

 
1,364,493

Cash and cash equivalents
15,241

 
10,482

 
5,450

 
2,691

 
10,335

Investments in unconsolidated joint ventures
145,447

 
136,922

 
162,094

 
133,982

 
126,632

Deferred lease costs and other intangibles, net
163,581

 
171,702

 
98,993

 
102,786

 
107,415

Deferred debt origination costs, net
10,818

 
7,275

 
7,921

 
8,534

 
9,083

Prepaids and other assets
81,414

 
71,943

 
69,205

 
63,353

 
60,842

Total assets
$
2,011,689

 
$
2,001,963

 
$
1,696,957

 
$
1,667,131

 
$
1,678,800

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
Debt
 
 
 
 
 
 
 
 
 
Senior, unsecured notes, net of discounts
$
794,248

 
$
548,247

 
$
548,174

 
$
548,103

 
$
548,033

Unsecured term loans, net of discounts
267,104

 
267,065

 
259,528

 
259,491

 
259,453

Mortgages payable, including premiums
250,497

 
251,533

 
104,237

 
105,346

 
107,745

Unsecured lines of credit
16,200

 
259,000

 
213,100

 
174,917

 
178,306

Total debt
1,328,049

 
1,325,845

 
1,125,039

 
1,087,857

 
1,093,537

Construction trade payables
9,776

 
5,272

 
5,595

 
7,744

 
7,084

Accounts payable & accruals
49,686

 
48,400

 
34,806

 
37,957

 
41,149

Deferred financing obligation
28,388

 
28,388

 
—

 
—

 
—

Other liabilities
32,962

 
33,101

 
21,223

 
22,134

 
23,155

Total liabilities
1,448,861

 
1,441,006

 
1,186,663

 
1,155,692

 
1,164,925

Commitments and contingencies
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
Tanger Factory Outlet Centers, Inc.
 
 
 
 
 
 
 
 
 
Common shares
945

 
945

 
944

 
944

 
941

Paid in capital
788,986

 
785,515

 
771,265

 
768,702

 
766,056

Accumulated distributions in excess of net income
(265,242
)
 
(262,173
)
 
(294,237
)
 
(289,880
)
 
(285,588
)
Accumulated other comprehensive income
2,532

 
1,179

 
1,343

 
1,179

 
1,200

  Equity attributable to Tanger Factory Outlet
  Centers, Inc.
527,221

 
525,466

 
479,315

 
480,945

 
482,609

Equity attributable to noncontrolling interests
 
 
 
 
 
 
 
 
 
Noncontrolling interests in Operating Partnership
28,703

 
28,615

 
24,100

 
24,184

 
24,432

Noncontrolling interest in other consolidated partnerships
6,904

 
6,876

 
6,879

 
6,310

 
6,834

Total equity
562,828

 
560,957

 
510,294

 
511,439

 
513,875

Total liabilities and equity
$
2,011,689

 
$
2,001,963

 
$
1,696,957

 
$
1,667,131

 
$
1,678,800


11
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2013


Consolidated Statements of Operations (dollars and shares in thousands)
 
 
 
Three Months Ended
 
YTD
 
12/31/13
 
9/30/13
 
6/30/13
 
3/31/13
 
12/31/12
 
 
12/31/13
 
12/31/12
REVENUES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Base rentals
$
68,811

 
$
64,301

 
$
61,046

 
$
59,244

 
$
59,769

 
 
$
253,402

 
$
235,233

Percentage rentals
4,295

 
3,084

 
1,855

 
2,017

 
4,630

 
 
11,251

 
11,172

Expense reimbursements
31,110

 
27,414

 
25,824

 
25,306

 
27,333

 
 
109,654

 
101,110

Other income
3,186

 
3,104

 
2,290

 
2,122

 
3,204

 
 
10,702

 
9,482

Total revenues
107,402

 
97,903

 
91,015

 
88,689

 
94,936

 
 
385,009

 
356,997

EXPENSES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property operating
34,227

 
29,863

 
28,821

 
28,135

 
29,481

 
 
121,046

 
111,160

General & administrative
9,879

 
9,754

 
9,914

 
9,572

 
9,715

 
 
39,119

 
37,452

Acquisition costs
240

 
532

 
252

 
179

 
117

 
 
1,203

 
117

Depreciation and amortization
27,063

 
24,223

 
22,172

 
22,288

 
23,436

 
 
95,746

 
98,683

Total expenses
71,409

 
64,372

 
61,159

 
60,174

 
62,749

 
 
257,114

 
247,412

Operating income
35,993

 
33,531

 
29,856

 
28,515

 
32,187

 
 
127,895

 
109,585

Interest expense
(13,790
)
 
(12,367
)
 
(12,583
)
 
(12,876
)
 
(12,752
)
 
 
(51,616
)
 
(49,814
)
Gain on previously held interest in acquired joint venture
—

 
26,002

 
—

 
—

 
—

 
 
26,002

 
—

Income before equity in earnings (losses) of unconsolidated joint ventures
22,203

 
47,166

 
17,273

 
15,639

 
19,435

 
 
102,281

 
59,771

Equity in earnings (losses) of unconsolidated joint ventures
933

 
9,014

 
503

 
590

 
(421
)
 
 
11,040

 
(3,295
)
Net income
23,136

 
56,180

 
17,776

 
16,229

 
19,014

 
 
113,321

 
56,476

Noncontrolling interests in Operating Partnership
(1,208
)
 
(2,787
)
 
(859
)
 
(789
)
 
(952
)
 
 
(5,643
)
 
(3,267
)
Noncontrolling interests in other consolidated partnerships
8

 
(99
)
 
(29
)
 
(1
)
 
(6
)
 
 
(121
)
 
19

Net income attributable to Tanger Factory Outlet Centers, Inc.
21,936

 
53,294

 
16,888

 
15,439

 
18,056

 
 
107,557

 
53,228

Allocation to participating securities
(230
)
 
(609
)
 
(231
)
 
(194
)
 
(208
)
 
 
(1,126
)
 
(784
)
Net income available to common shareholders
$
21,706

 
$
52,685

 
$
16,657

 
$
15,245

 
$
17,848

 
 
$
106,431

 
$
52,444

Basic earnings per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
0.23

 
$
0.56

 
$
0.18

 
$
0.16

 
$
0.19

 
 
$
1.14

 
$
0.57

Diluted earnings per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
0.23

 
$
0.56

 
$
0.18

 
$
0.16

 
$
0.19

 
 
$
1.13

 
$
0.57

Weighted average common shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
93,408

 
93,368

 
93,331

 
93,132

 
92,845

 
 
93,311

 
91,733

Diluted
94,354

 
94,300

 
94,207

 
94,043

 
93,807

 
 
94,247

 
92,661





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


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

 
 

Net income
$
23,136

 
$
56,180

 
$
17,776

 
$
16,229

 
$
19,014

 
 
$
113,321

 
$
56,476

Adjusted for -
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization uniquely significant to real estate - consolidated properties
26,717

 
23,888

 
21,867

 
22,043

 
23,217

 
 
94,515

 
97,760

Depreciation and amortization uniquely significant to real estate - unconsolidated joint ventures
2,954

 
2,861

 
3,431

 
3,173

 
2,996

 
 
12,419

 
8,105

Gain on previously held interest in acquired joint venture
—

 
(26,002
)
 
—

 
—

 
—

 
 
(26,002
)
 
—

Impairment charge - unconsolidated joint ventures
—

 
—

 
—

 
—

 
—

 
 
—

 
140

Funds from operations
52,807

 
56,927

 
43,074

 
41,445

 
45,227

 
 
194,253

 
162,481

FFO attributable to noncontrolling interests in other consolidated partnerships
(12
)
 
(117
)
 
(66
)
 
(7
)
 
(36
)
 
 
(202
)
 
(26
)
Allocation to participating securities
(524
)
 
(614
)
 
(461
)
 
(425
)
 
(451
)
 
 
(2,025
)
 
(1,576
)
Funds from operations available to
    common shareholders
$
52,271

 
$
56,196

 
$
42,547

 
$
41,013

 
$
44,740

 
 
$
192,026

 
$
160,879

Funds from operations per share
$
0.53

 
$
0.57

 
$
0.43

 
$
0.42

 
$
0.45

 
 
$
1.94

 
$
1.63

Funds available for distribution to common shareholders:
 
 

 
 

 
 
 
 
 

Funds from operations
$
52,271

 
$
56,196

 
$
42,547

 
$
41,013

 
$
44,740

 
 
$
192,026

 
$
160,879

Adjusted for -
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate depreciation excluded above
346

 
335

 
305

 
245

 
219

 
 
1,231

 
923

Amortization of finance costs
399

 
594

 
598

 
603

 
591

 
 
2,194

 
2,313

Amortization of net debt discount (premium)
(119
)
 
(254
)
 
(252
)
 
(261
)
 
(254
)
 
 
(886
)
 
(1,007
)
Amortization of share-based compensation
3,012

 
2,964

 
2,939

 
2,460

 
2,338

 
 
11,375

 
10,296

Straight line rent adjustment
(1,461
)
 
(1,587
)
 
(1,393
)
 
(1,087
)
 
(783
)
 
 
(5,528
)
 
(3,649
)
Market rent adjustment
752

 
235

 
181

 
(27
)
 
141

 
 
1,141

 
(348
)
2nd generation tenant allowances
(5,081
)
 
(4,435
)
 
(5,442
)
 
(1,885
)
 
(5,901
)
 
 
(16,843
)
 
(15,914
)
Capital improvements
(2,187
)
 
(3,404
)
 
(6,735
)
 
(2,882
)
 
(1,410
)
 
 
(15,208
)
 
(7,752
)
Adjustments from unconsolidated joint ventures
47

 
(4,711
)
 
(220
)
 
(30
)
 
17

 
 
(4,914
)
 
520

Funds available for distribution
$
47,979

 
$
45,933

 
$
32,528

 
$
38,149

 
$
39,698

 
 
$
164,588

 
$
146,261

Funds available for distribution
   per share
$
0.48

 
$
0.46

 
$
0.33

 
$
0.39

 
$
0.40

 
 
$
1.66

 
$
1.48

Dividends paid per share
$
0.225

 
$
0.225

 
$
0.225

 
$
0.210

 
$
0.210

 
 
$
0.885

 
$
0.830

FFO payout ratio
43
%
 
40
%
 
53
%
 
50
%
 
47
%
 
 
46
%
 
51
%
FAD payout ratio
48
%
 
50
%
 
70
%
 
54
%
 
53
%
 
 
53
%
 
56
%
Diluted weighted average common shs.
99,499

 
99,178

 
98,955

 
98,798

 
98,699

 
 
99,129

 
98,605


13
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2013



Unconsolidated Joint Venture Information (1) 

The following table details certain information as of December 31, 2013, except for Net Operating Income ("NOI") which is for the year ended December 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
Charlotte (2)
 
Charlotte, NC
 
50.0
%
 
—

 
$
12.1

 
$
—

 
$
—

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

 
41.1

 
4.6

 
32.5

 
 
 
 
 
 
 
 
 
 
 
 
 
National Harbor
 
Washington D.C.
Metro Area
 
50.0
%
 
336,286

 
51.2

 
0.3

 
26.2

 
 
 
 
 
 
 
 
 
 
 
 
 
RioCan Canada (3)
 
Various
 
50.0
%
 
432,836

 
96.3

 
4.3

 
9.0

 
 
 
 
 
 
 
 
 
 
 
 
 
Westgate
 
Glendale, AZ
 
58.0
%
 
331,739

 
41.9

 
4.9

 
25.0

 
 
 
 
 
 
 
 
 
 
 
 
 
Wisconsin Dells
 
Wisconsin Dells, WI
 
50.0
%
 
265,086

 
15.1

 
2.3

 
12.1

 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
0.2

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
$
257.9

 
$
16.4

 
$
104.8

(1)
Excludes the Deer Park Outlet Center, in which the Company acquired a controlling interest on August 30, 2013.
(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 161,617 square foot center in Bromont, Quebec and a 115,697 square foot center in Saint-Sauveur, Quebec, both of which were acquired in November of 2012, as well as investments related to the construction and development of an outlet center in Ottawa, Ontario, an expansion of the outlet center in Cookstown, Ontario, and due diligence costs for additional potential sites in Canada.



14
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2013


Unconsolidated Joint Venture Information
Summary Combined Balance Sheets (dollars in thousands)
 
12/31/2013
 
9/30/2013
 
6/30/2013
 
3/31/2013
 
12/31/2012
 
 
 
Tanger's Share as of 12/31/13
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Land
$
66,020

 
$
49,184

 
$
94,961

 
$
95,748

 
$
96,455

 
 
 
$
33,992

Buildings, improvements and fixtures
327,972

 
256,652

 
493,100

 
495,958

 
493,424

 
 
 
168,598

Construction in progress, including land
86,880

 
138,615

 
90,413

 
21,974

 
16,338

 
 
 
43,440

 
480,872

 
444,451

 
678,474

 
613,680

 
606,217

 
 
 
246,030

Accumulated depreciation
(29,523
)
 
(25,561
)
 
(74,642
)
 
(68,667
)
 
(62,547
)
 
 
 
(15,071
)
Total rental property, net
451,349

 
418,890

 
603,832

 
545,013

 
543,670

 
 
 
230,959

Assets held for sale (1)
—

 
—

 
—

 
—

 
1,828

 
 
 
—

Cash and cash equivalents
22,704

 
13,727

 
16,511

 
20,531

 
21,879

 
 
 
11,645

Deferred lease costs, net
19,281

 
20,012

 
21,285

 
23,080

 
24,411

 
 
 
9,745

Deferred debt origination costs, net
1,737

 
1,970

 
4,025

 
4,399

 
5,213

 
 
 
906

Prepaids and other assets
9,107

 
8,167

 
26,181

 
24,900

 
25,350

 
 
 
4,612

Total assets
$
504,178

 
$
462,766

 
$
671,834

 
$
617,923

 
$
622,351


 
 
$
257,867

 
 
 
 
 
 
 
 
 
 
 
 
 
 

Liabilities & Owners' Equity
 
 
 
 
 
 
 
 
 
 
 
 
 

Mortgages payable
$
202,688

 
$
179,212

 
$
336,338

 
$
329,262

 
$
325,192

 
 
 
$
104,789

Construction trade payables
19,370

 
13,950

 
10,842

 
14,232

 
21,734

 
 
 
9,771

Accounts payable & other liabilities
8,540

 
6,253

 
14,830

 
16,726

 
31,944

 
 
 
4,351

Total liabilities
230,598

 
199,415

 
362,010

 
360,220

 
378,870


 
 
118,911

Owners' equity
273,580

 
263,351

 
309,824

 
257,703

 
243,481

 
 
 
138,956

Total liabilities & owners' equity
$
504,178

 
$
462,766

 
$
671,834

 
$
617,923

 
$
622,351


 
 
$
257,867

(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 12/31/2013


Unconsolidated Joint Venture Information
Summary Combined Statements of Operations (dollars in thousands)
 
Three Months Ended
 
YTD
 
12/31/13
 
9/30/13
 
6/30/13
 
3/31/13
 
12/31/12
 
 
 
12/31/13
 
12/31/12
Revenues
$
14,721

 
$
29,013

 
$
20,553

 
$
21,395

 
$
19,687

 
 
 
$
85,682

 
$
54,936

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property operating
6,170

 
7,754

 
8,546

 
9,140

 
9,183

 
 
 
31,610

 
24,678

General & administrative
15

 
648

 
166

 
148

 
205

 
 
 
977

 
970

Acquisition costs
3

 
—

 
53

 
421

 
733

 
 
 
477

 
1,437

Abandoned development costs
—

 
19

 
134

 
—

 
57

 
 
 
153

 
1,447

Impairment charge
—

 
—

 
—

 
—

 
—

 
 
 
—

 
420

Depreciation & amortization
5,712

 
6,232

 
7,584

 
7,384

 
6,723

 
 
 
26,912

 
19,914

Total expenses
11,900

 
14,653

 
16,483

 
17,093

 
16,901

 
 
 
60,129

 
48,866

Operating income
2,821

 
14,360

 
4,070

 
4,302

 
2,786

 


25,553

 
6,070

Gain on early extinguishment of debt
—

 
13,820

 
—

 
—

 
—

 
 
 
13,820

 
—

Interest expense
(1,196
)
 
(2,840
)
 
(3,514
)
 
(4,052
)
 
(3,793
)
 
 
 
(11,602
)
 
(14,760
)
Net income (loss)
$
1,625

 
$
25,340

 
$
556

 
$
250

 
$
(1,007
)
 


$
27,771

 
$
(8,690
)
Tanger's share of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenues less property operating and general & administrative expenses ("NOI")
$
4,505

 
$
8,449

 
$
5,334

 
$
5,443

 
$
4,326

 
 
 
$
23,731

 
$
11,534

Net income (loss)
$
933

 
$
9,014

 
$
503

 
$
590

 
$
(421
)
 
 
 
$
11,040

 
$
(3,295
)
Depreciation and impairments (real estate related)
$
2,954

 
$
2,861

 
$
3,431

 
$
3,173

 
$
2,996

 
 
 
$
12,419

 
$
8,245


16
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2013


External Growth Pipeline Summary
Represents Tanger's expectations as of February 11, 2014

Project/Market
Approximate
Size (000 SF)
Projected
Total Cost
(Millions)
Tanger
Share
Projected
Return
Projected
Opening
 
 
 
 
 
 
 
UNITED STATES:
 
 
 
 
 
New development
 
 
 
 
 
Charlotte, NC
400
$85 - $95
50%
9.5% - 10.5%
3Q 2014
Foxwoods, Mashantucket, CT (2)
314
$110 - $120
67%
(1)
2Q 2015
Columbus, OH
350
$75 - $85
50%
(1)
1H 2015
Savannah, GA (2)
385
$105 - $115
50%
(1)
2Q 2015
Grand Rapids, MI
350
$80 - $90
100%
(1)
2H 2015
Scottsdale, AZ
220
$45 - $55
100%
(1)
2H 2015
 
 
 
 
 
 
 
Expansions
 
 
 
 
 
Park City, UT
21
$5.5 - $6.5
100%
9.5% - 10.5%
3Q 2014
Branson, MO
25
$8 - $9
100%
9% - 10%
4Q 2014
Glendale, AZ (Westgate)
65
$17 - $19
58%
9.5% - 10.5%
4Q 2014
 
 
 
 
 
 
 
CANADA:
 
 
 
 
 
New development
 
 
 
 
 
Kanata, ON (Ottawa)
303
$115 - $120
50%
8% - 9%
4Q 2014
 
 
 
 
 
 
 
Expansions
 
 
 
 
 
Cookstown, ON (N. Toronto)
153
$65 - $75
50%
5.5% - 6.5%
4Q 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 12/31/2013


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

 
 
 
 
 
 
Unsecured lines of credit (1)
$
16,200

 
LIBOR + 1.00%

 
 
 
10/24/2017
2015 Senior unsecured notes
250,000

 
6.15%

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

 
6.125%

 
 
 
6/1/2020
2023 Senior unsecured notes
250,000

 
3.875
%
 
 
 
12/1/2023
Unsecured term loan
250,000

 
LIBOR + 1.60%

 
 
 
2/23/2019
Unsecured term note
7,500

 
LIBOR + 1.30%

 
 
 
8/28/2017
Unsecured note
10,000

 
1.50%

 
3.153
%
 
6/30/2016
Net debt discounts
(6,148
)
 
 

 
 
 
 
Total unsecured debt
$
1,077,552

 
 

 
 
 
 
Secured mortgage debt:
 
 
 
 
 
 
 
Atlantic City, NJ (including premium of $4,091) (2)
$
52,626

 
5.14% - 7.65%

 
5.05
%
 
11/15/2021 - 12/15/2026
Deer Park, NY (net of discount of $1,478) (3)
148,522

 
LIBOR + 1.50%

 
2.80
%
 
8/30/2018
Hershey, PA (including premium of $993) (2)
30,963

 
5.17% - 8.00%

 
3.40
%
 
8/1/2015
Ocean City, MD (including premium of $193) (2)
18,386

 
5.24%

 
4.68
%
 
1/6/2016
Total secured mortgage debt
$
250,497

 
 
 
 
 
 
Tanger's share of unconsolidated JV debt:
 

 
 

 
 
 
 
Galveston/Houston (4)
$
32,500

 
LIBOR + 1.50%

 
 
 
7/01/2017
National Harbor (5)
26,212

 
LIBOR + 1.65%

 
 
 
5/16/2016
RioCan Canada (including premium of $582) (6)
8,978

 
5.10% - 5.75%

 
3.93% - 4.18%

 
6/22/2015 - 5/10/2020
Westgate (7)
24,974

 
LIBOR + 1.75%

 
 
 
6/27/2015
Wisconsin Dells (8)
12,125

 
LIBOR + 2.25%

 
 
 
12/17/2022
Total Tanger's share of unconsolidated JV debt
$
104,789

 
 

 
 
 
 
(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. On October 24, 2013, both lines were amended, extending maturity to October 24, 2017 with the option to further extend the maturity for one additional year, reducing the stated interest rate to LIBOR + 1.00%, and reducing the facility fees, which are payable based on the full amount of the commitment, to 15 basis points annually from 17.5 basis points.

(2)
Represents mortgages assumed in the acquisitions of various properties owned by joint ventures which are consolidated for financial reporting purposes.
  
(3)
On August 30, 2013, as part of the acquisition of a controlling interest in Deer Park, we assumed an interest-only mortgage loan that has a 5 year term and carries an interest rate of LIBOR + 1.50%. In October 2013, we entered into interest rate swap agreements that fix the base LIBOR rate at an average of 1.30%, creating a contractual interest rate of 2.80%.

(4)
In July 2013, the joint venture closed on a $70.0 million mortgage loan with a rate of LIBOR + 1.50% and a maturity date of July 1, 2017, with the option to extend the maturity for one additional year. As of December 31, 2013, the balance on the loan was $65 million.

(5)
In May 2013, the joint venture closed on a construction loan with the ability to borrow up to $62.0 million, which carries an interest rate of LIBOR + 1.65%. As of December 31, 2013, the balance on the loan was $52.4 million.


18
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2013


(6)
Represents the mortgages assumed related to the acquisition of the Saint-Sauveur, Quebec property by the RioCan co-owners in November 2012. The mortgages have a balance of $16.8 million and carry a weighted average interest rate of 5.7% and mature in 2015 and 2020, respectively.

(7)
In June 2012, the joint venture closed on a construction loan with the ability to borrow up to $48.3 million, which carries an interest rate of LIBOR + 1.75%. As of December 31, 2013, the balance on the loan was $43.1 million.

(8)
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 12/31/2013


Future Scheduled Principal Payments (dollars in thousands)
As of December 31, 2013
Year
Tanger
Consolidated
Payments
 
Tanger's Share
of Unconsolidated
JV Payments
 
Total
Scheduled
Payments
2014
3,603

 
325

 
3,928

2015
282,343

 
25,296

 
307,639

2016
30,283

 
27,323

 
57,606

2017 (1)
26,708

 
32,837

 
59,545

2018
153,183

 
357

 
153,540

2019
253,369

 
377

 
253,746

2020
303,567

 
5,567

 
309,134

2021
5,793

 
—

 
5,793

2022
4,436

 
12,125

 
16,561

2023
254,768

 
—

 
254,768

2024 & thereafter
12,345

 
—

 
12,345

 
$
1,330,398

 
$
104,207

 
$
1,434,605

Net Discount on Debt
(2,349
)
 
582

 
(1,767
)
 
$
1,328,049

 
$
104,789

 
$
1,432,838

Senior Unsecured Notes Financial Covenants (2) 
As of December 31, 2013
 
Required
 
Actual
 
Compliance
Total Consolidated Debt to Adjusted Total Assets
<60%
 
48
%
 
Yes
Total Secured Debt to Adjusted Total Assets
<40%
 
9
%
 
Yes
Total Unencumbered Assets to Unsecured Debt
>135%
 
188
%
 
Yes
Consolidated Income Available for Debt Service to Annual Debt Service Charge
>1.5
 
4.73

 
Yes
(1)
Includes balances of $16.2 million outstanding under the company's unsecured lines of credit. These lines were amended on October 24, 2013, extending maturity to October 24, 2017.
(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.


20
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2013


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 12/31/2013