EX-99.2 3 skt8kex992march312014.htm EXHIBIT SKT 8K EX 99.2 March 31 2014


Exhibit 99.2
Tanger Factory Outlet Centers, Inc.
  
Supplemental Operating and Financial Data
March 31, 2014


1                
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2014


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, 2013.
  
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 3/31/2014


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, 2014
Leasing Activity
 
 
 
 
Financial Data:
 
 
 
Consolidated Balance Sheets
Consolidated Statements of Operations
FFO and FAD Analysis
Unconsolidated Joint Venture Information
Pro Rata Balance Sheet
Pro Rata Statement of Operations
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 3/31/2014


Geographic Diversification

Consolidated Properties
As of March 31, 2014
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

 
619,621

 
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

 
438,335

 
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

 
11,537,036

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

 
352,705

 
50.00
%
Washington D.C.
1

 
338,786

 
50.00
%
Glendale, AZ
1

 
331,739

 
58.00
%
Wisconsin Dells, WI
1

 
265,086

 
50.00
%
Bromont, QC
1

 
161,449

 
50.00
%
Cookstown, ON
1

 
155,302

 
50.00
%
Saint-Sauveur, QC
1

 
115,697

 
50.00
%
Total
7

 
1,720,764

 
 

4                
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2014


Property Summary - Occupancy at End of Each Period Shown

Consolidated properties
 
 
 
 
 
 
 
 
 
 
Location
Total GLA
3/31/14
 
% Occupied
3/31/14
 
% Occupied
12/31/13
 
% Occupied
9/30/13
 
% Occupied
6/30/13
 
% Occupied
3/31/13
Deer Park, NY
741,981

 
92
%
 
95
%
 
95
%
 
N/A

 
N/A

Riverhead, NY
729,734

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

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

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

 
93
%
 
96
%
 
95
%
 
94
%
 
94
%
San Marcos, TX
441,821

 
100
%
 
100
%
 
99
%
 
99
%
 
99
%
Sevierville, TN
438,335

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

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

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

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

 
96
%
 
100
%
 
100
%
 
100
%
 
100
%
Commerce II, GA
370,512

 
94
%
 
99
%
 
99
%
 
99
%
 
100
%
Charleston, SC
365,107

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

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

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

 
99
%
 
100
%
 
100
%
 
100
%
 
100
%
Gonzales, LA
318,666

 
98
%
 
100
%
 
100
%
 
99
%
 
99
%
Branson, MO
302,922

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

 
97
%
 
100
%
 
99
%
 
99
%
 
100
%
Westbrook, CT
289,898

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

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

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

 
99
%
 
100
%
 
100
%
 
100
%
 
100
%
Tuscola, IL
250,439

 
90
%
 
92
%
 
95
%
 
95
%
 
94
%
Hershey, PA
247,500

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

 
98
%
 
100
%
 
100
%
 
100
%
 
100
%
Hilton Head II, SC
206,544

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

 
93
%
 
94
%
 
91
%
 
88
%
 
94
%
Ocean City, MD
198,840

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

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

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

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

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

 
100
%
 
100
%
 
100
%
 
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
11,537,036

 
97
%
 
99
%
 
99
%
 
98
%
 
98
%




5                
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2014


Unconsolidated joint venture properties
 
 
 
 
 
 
 
 
 
 
Location
Total GLA
3/31/14
 
% Occupied
3/31/14
 
% Occupied
12/31/13
 
% Occupied
9/30/13
 
% Occupied
6/30/13
 
% Occupied
3/31/13
Deer Park, NY (1)
741,981

 
N/A

 
N/A

 
N/A

 
94
%
 
92
%
Texas City, TX
352,705

 
99
%
 
100
%
 
100
%
 
97
%
 
97
%
Washington D.C.
338,786

 
97
%
 
99
%
 
N/A

 
N/A

 
N/A

Glendale, AZ
331,739

 
99
%
 
100
%
 
100
%
 
97
%
 
95
%
Wisconsin Dells, WI
265,086

 
97
%
 
100
%
 
100
%
 
100
%
 
100
%
Bromont, QC
161,449

 
81
%
 
84
%
 
93
%
 
92
%
 
89
%
Cookstown, ON
155,302

 
98
%
 
100
%
 
95
%
 
99
%
 
97
%
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 3/31/2014


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 3/31/2014


Major Tenants (1) 
Ten Largest Tenants as of March 31, 2014
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
95

 
474,627

 
4.1
%
Nike
37

 
392,570

 
3.4
%
VF Outlet, Inc.
44

 
388,798

 
3.4
%
G-III Apparel
68

 
338,197

 
3.0
%
Ann Taylor
47

 
321,229

 
2.8
%
Polo Ralph Lauren
31

 
315,549

 
2.7
%
Adidas
42

 
291,889

 
2.5
%
Carter's
61

 
286,554

 
2.5
%
Total of All Listed Above
599

 
4,239,090

 
36.7
%
(1)
Excludes unconsolidated outlet centers. See table on page 4.





8                
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2014


Lease Expirations as of March 31, 2014


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

9                
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2014


Leasing Activity (1) 
 
3/31/2014
 
6/30/2014
 
9/30/2014
 
12/31/2014
 
Year to Date
 
Prior
Year to
Date
Re-tenanted Space:
 
 
 
 
 
 
 
 
 

 
 

Number of leases
75

 

 

 

 
75

 
90

Gross leasable area
272,801

 

 

 

 
272,801

 
293,535

New initial base rent per square foot
$
29.43

 

 

 

 
$
29.43

 
$
26.97

Prior expiring base rent per square foot
$
23.96

 

 

 

 
$
23.96

 
$
23.35

Percent increase
22.8
%
 

 

 

 
22.8
%
 
15.5
%
 
 
 
 
 
 
 
 
 
 
 
 
New straight line base rent per square foot
$
32.14

 

 

 

 
$
32.14

 
$
29.76

Prior straight line base rent per square foot
$
23.66

 

 

 

 
$
23.66

 
$
22.52

Percent increase
35.9
%
 

 

 

 
35.9
%
 
32.2
%
 
 
 
 
 
 
 
 
 
 
 
 
Renewed Space:
 
 
 
 
 
 
 
 
 
 
 
Number of leases
184

 

 

 

 
184

 
231

Gross leasable area
870,318

 

 

 

 
870,318

 
1,135,107

New initial base rent per square foot
$
22.26

 

 

 

 
$
22.26

 
$
22.37

Prior expiring base rent per square foot
$
20.23

 

 

 

 
$
20.23

 
$
19.99

Percent increase
10.0
%
 

 

 

 
10.0
%
 
11.9
%
 
 
 
 
 
 
 
 
 
 
 
 
New straight line base rent per square foot
$
23.24

 

 

 

 
$
23.24

 
$
23.17

Prior straight line base rent per square foot
$
19.72

 

 

 

 
$
19.72

 
$
19.64

Percent increase
17.9
%
 

 

 

 
17.9
%
 
18.0
%
 
 
 
 
 
 
 
 
 
 
 
 
Total Re-tenanted and Renewed Space:
 
 
 
 
 
 
 
 
 
 
 
Number of leases
259

 

 

 

 
259

 
321

Gross leasable area
1,143,119

 

 

 

 
1,143,119

 
1,428,642

New initial base rent per square foot
$
23.97

 

 

 

 
$
23.97

 
$
23.32

Prior expiring base rent per square foot
$
21.12

 

 

 

 
$
21.12

 
$
20.68

Percent increase
13.5
%
 

 

 

 
13.5
%
 
12.7
%
 
 
 
 
 
 
 
 
 
 
 
 
New straight line base rent per square foot
$
25.36

 

 

 

 
$
25.36

 
$
24.52

Prior straight line base rent per square foot
$
20.66

 

 

 

 
$
20.66

 
$
20.23

Percent increase
22.8
%
 

 

 

 
22.8
%
 
21.2
%
(1)
Excludes unconsolidated outlet centers. See table on page 4.

10                
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2014


Consolidated Balance Sheets (dollars in thousands)
 
3/31/2014
 
12/31/2013
 
9/30/2013
 
6/30/2013
 
3/31/2013
ASSETS
 
 
 
 
 
 
 
 
 
Rental property
 
 
 
 
 
 
 
 
 
Land
$
230,415

 
$
230,415

 
$
230,417

 
$
148,003

 
$
148,002

Buildings, improvements and fixtures
2,013,520

 
2,009,971

 
2,004,882

 
1,821,404

 
1,802,160

Construction in progress
20,848

 
9,433

 
4,375

 
2,531

 
6,336

 
2,264,783

 
2,249,819

 
2,239,674

 
1,971,938

 
1,956,498

Accumulated depreciation
(671,807
)
 
(654,631
)
 
(636,035
)
 
(618,644
)
 
(600,713
)
Total rental property, net
1,592,976

 
1,595,188

 
1,603,639

 
1,353,294

 
1,355,785

Cash and cash equivalents
16,906

 
15,241

 
10,482

 
5,450

 
2,691

Investments in unconsolidated joint ventures
171,040

 
140,214

 
136,922

 
162,094

 
133,982

Deferred lease costs and other intangibles, net
157,627

 
163,581

 
171,702

 
98,993

 
102,786

Deferred debt origination costs, net
10,276

 
10,818

 
7,275

 
7,921

 
8,534

Prepaids and other assets
81,068

 
81,414

 
71,943

 
69,205

 
63,353

Total assets
$
2,029,893

 
$
2,006,456

 
$
2,001,963

 
$
1,696,957

 
$
1,667,131

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
Debt
 
 
 
 
 
 
 
 
 
Senior, unsecured notes, net of discounts
$
794,407

 
$
794,248

 
$
548,247

 
$
548,174

 
$
548,103

Unsecured term loans, net of discounts
267,141

 
267,104

 
267,065

 
259,528

 
259,491

Mortgages payable, including premiums
249,418

 
250,497

 
251,533

 
104,237

 
105,346

Unsecured lines of credit
46,900

 
16,200

 
259,000

 
213,100

 
174,917

Total debt
1,357,866

 
1,328,049

 
1,325,845

 
1,125,039

 
1,087,857

Construction trade payables
13,471

 
9,776

 
5,272

 
5,595

 
7,744

Accounts payable and accruals
46,401

 
49,686

 
48,400

 
34,806

 
37,957

Deferred financing obligation
28,388

 
28,388

 
28,388

 
—

 
—

Other liabilities
31,942

 
32,962

 
33,101

 
21,223

 
22,134

Total liabilities
1,478,068

 
1,448,861

 
1,441,006

 
1,186,663

 
1,155,692

Commitments and contingencies
—

 
—

 
—

 
—

 
—

Equity
 
 
 
 
 
 
 
 
 
Tanger Factory Outlet Centers, Inc.
 
 
 
 
 
 
 
 
 
Common shares
958

 
945

 
945

 
944

 
944

Paid in capital
793,059

 
788,984

 
785,515

 
771,265

 
768,702

Accumulated distributions in excess of net income
(272,085
)
 
(265,242
)
 
(262,173
)
 
(294,237
)
 
(289,880
)
Accumulated other comprehensive income
(5,515
)
 
(2,428
)
 
1,179

 
1,343

 
1,179

  Equity attributable to Tanger Factory Outlet
  Centers, Inc.
516,417

 
522,259

 
525,466

 
479,315

 
480,945

Equity attributable to noncontrolling interests
 
 
 
 
 
 
 
 
 
Noncontrolling interests in Operating Partnership
27,606

 
28,432

 
28,615

 
24,100

 
24,184

Noncontrolling interest in other consolidated partnerships
7,802

 
6,904

 
6,876

 
6,879

 
6,310

Total equity
551,825

 
557,595

 
560,957

 
510,294

 
511,439

Total liabilities and equity
$
2,029,893

 
$
2,006,456

 
$
2,001,963

 
$
1,696,957

 
$
1,667,131


11                
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2014


Consolidated Statements of Operations (dollars and shares in thousands)
 
 
 
Three Months Ended
 
YTD
 
3/31/14
 
12/31/13
 
9/30/13
 
6/30/13
 
3/31/13
 
 
3/31/14
 
3/31/13
REVENUES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Base rentals
$
66,976

 
$
68,811

 
$
64,301

 
$
61,046

 
$
59,244

 
 
$
66,976

 
$
59,244

Percentage rentals
2,083

 
4,295

 
3,084

 
1,855

 
2,017

 
 
2,083

 
2,017

Expense reimbursements
31,542

 
31,110

 
27,414

 
25,824

 
25,306

 
 
31,542

 
25,306

Other income
2,241

 
3,186

 
3,104

 
2,290

 
2,122

 
 
2,241

 
2,122

Total revenues
102,842

 
107,402

 
97,903

 
91,015

 
88,689

 
 
102,842

 
88,689

EXPENSES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property operating
36,027

 
34,227

 
29,863

 
28,821

 
28,135

 
 
36,027

 
28,135

General and administrative
10,722

 
9,879

 
9,754

 
9,914

 
9,572

 
 
10,722

 
9,572

Acquisition costs
7

 
240

 
532

 
252

 
179

 
 
7

 
179

Abandoned pre-development costs
1,596

 
—

 
—

 
—

 
—

 
 
1,596

 
—

Depreciation and amortization
26,063

 
27,063

 
24,223

 
22,172

 
22,288

 
 
26,063

 
22,288

Total expenses
74,415

 
71,409

 
64,372

 
61,159

 
60,174

 
 
74,415

 
60,174

Operating income
28,427

 
35,993

 
33,531

 
29,856

 
28,515

 
 
28,427

 
28,515

Interest expense
(14,920
)
 
(13,790
)
 
(12,367
)
 
(12,583
)
 
(12,876
)
 
 
(14,920
)
 
(12,876
)
Gain on previously held interest in acquired joint venture
—

 
—

 
26,002

 
—

 
—

 
 
—

 
—

Income before equity in earnings of unconsolidated joint ventures
13,507

 
22,203

 
47,166

 
17,273

 
15,639

 
 
13,507

 
15,639

Equity in earnings of unconsolidated joint ventures
1,933

 
933

 
9,014

 
503

 
590

 
 
1,933

 
590

Net income
15,440

 
23,136

 
56,180

 
17,776

 
16,229

 
 
15,440

 
16,229

Noncontrolling interests in Operating Partnership
(803
)
 
(1,208
)
 
(2,787
)
 
(859
)
 
(789
)
 
 
(803
)
 
(789
)
Noncontrolling interests in other consolidated partnerships
(21
)
 
8

 
(99
)
 
(29
)
 
(1
)
 
 
(21
)
 
(1
)
Net income attributable to Tanger Factory Outlet Centers, Inc.
14,616

 
21,936

 
53,294

 
16,888

 
15,439

 
 
14,616

 
15,439

Allocation to participating securities
(429
)
 
(230
)
 
(609
)
 
(231
)
 
(194
)
 
 
(429
)
 
(194
)
Net income available to common shareholders
$
14,187

 
$
21,706

 
$
52,685

 
$
16,657

 
$
15,245

 
 
$
14,187

 
$
15,245

Basic earnings per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
0.15

 
$
0.23

 
$
0.56

 
$
0.18

 
$
0.16

 
 
$
0.15

 
$
0.16

Diluted earnings per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
0.15

 
$
0.23

 
$
0.56

 
$
0.18

 
$
0.16

 
 
$
0.15

 
$
0.16

Weighted average common shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
93,580

 
93,408

 
93,368

 
93,331

 
93,132

 
 
93,580

 
93,132

Diluted
93,649

 
94,354

 
94,300

 
94,207

 
94,043

 
 
93,649

 
94,043





12                
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2014


FFO and FAD Analysis (dollars and shares in thousands)
 
 
 
Three Months Ended
 
YTD
 
3/31/14
 
12/31/13
 
9/30/13
 
6/30/13
 
3/31/13
 
 
3/31/14
 
3/31/13
Funds from operations:
 
 
 
 
 
 
 
 
 
 
 
 

 
 

Net income
$
15,440

 
$
23,136

 
$
56,180

 
$
17,776

 
$
16,229

 
 
$
15,440

 
$
16,229

Adjusted for -
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization uniquely significant to real estate - consolidated properties
25,702

 
26,717

 
23,888

 
21,867

 
22,043

 
 
25,702

 
22,043

Depreciation and amortization uniquely significant to real estate - unconsolidated joint ventures
2,605

 
2,954

 
2,861

 
3,431

 
3,173

 
 
2,605

 
3,173

Gain on previously held interest in acquired joint venture
—

 
—

 
(26,002
)
 
—

 
—

 
 
—

 
—

Funds from operations
43,747

 
52,807

 
56,927

 
43,074

 
41,445

 
 
43,747

 
41,445

FFO attributable to noncontrolling interests in other consolidated partnerships
(40
)
 
(12
)
 
(117
)
 
(66
)
 
(7
)
 
 
(40
)
 
(7
)
Allocation to participating securities
(864
)
 
(524
)
 
(614
)
 
(461
)
 
(425
)
 
 
(864
)
 
(425
)
Funds from operations available to
    common shareholders
$
42,843

 
$
52,271

 
$
56,196

 
$
42,547

 
$
41,013

 
 
$
42,843

 
$
41,013

Funds from operations per share
$
0.43

 
$
0.53

 
$
0.57

 
$
0.43

 
$
0.42

 
 
$
0.43

 
$
0.42

Funds available for distribution to common shareholders:
 
 

 
 

 
 
 
 
 

Funds from operations
$
42,843

 
$
52,271

 
$
56,196

 
$
42,547

 
$
41,013

 
 
$
42,843

 
$
41,013

Adjusted for -
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate depreciation excluded above
361

 
346

 
335

 
305

 
245

 
 
361

 
245

Amortization of finance costs
553

 
399

 
594

 
598

 
603

 
 
553

 
603

Amortization of net debt discount (premium)
(89
)
 
(119
)
 
(254
)
 
(252
)
 
(261
)
 
 
(89
)
 
(261
)
Amortization of share-based compensation
3,349

 
3,012

 
2,964

 
2,939

 
2,460

 
 
3,349

 
2,460

Straight line rent adjustment
(1,838
)
 
(1,461
)
 
(1,587
)
 
(1,393
)
 
(1,087
)
 
 
(1,838
)
 
(1,087
)
Market rent adjustment
669

 
752

 
235

 
181

 
(27
)
 
 
669

 
(27
)
2nd generation tenant allowances
(3,378
)
 
(5,081
)
 
(4,435
)
 
(5,442
)
 
(1,885
)
 
 
(3,378
)
 
(1,885
)
Capital improvements
(4,209
)
 
(2,187
)
 
(3,404
)
 
(6,735
)
 
(2,882
)
 
 
(4,209
)
 
(2,882
)
Adjustments from unconsolidated joint ventures
(218
)
 
47

 
(4,711
)
 
(220
)
 
(30
)
 
 
(218
)
 
(30
)
Funds available for distribution
$
38,043

 
$
47,979

 
$
45,933

 
$
32,528

 
$
38,149

 
 
$
38,043

 
$
38,149

Funds available for distribution
   per share
$
0.39

 
$
0.48

 
$
0.46

 
$
0.33

 
$
0.39

 
 
$
0.39

 
$
0.39

Dividends paid per share
$
0.225

 
$
0.225

 
$
0.225

 
$
0.225

 
$
0.210

 
 
$
0.225

 
$
0.210

FFO payout ratio
52
%
 
43
%
 
40
%
 
53
%
 
50
%
 
 
52
%
 
50
%
FAD payout ratio
58
%
 
48
%
 
50
%
 
70
%
 
54
%
 
 
58
%
 
54
%
Diluted weighted average common shs.
98,789

 
99,499

 
99,178

 
98,955

 
98,798

 
 
98,789

 
98,798


13                
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2014



Unconsolidated Joint Venture Information

The following table details certain information as of March 31, 2014, except for Net Operating Income ("NOI") which is for the three months ended March 31, 2014, 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 (1)
 
Charlotte, NC
 
50.0
%
 
—

 
$
23.4

 
$
—

 
$
—

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

 
39.5

 
1.2

 
32.5

 
 
 
 
 
 
 
 
 
 
 
 
 
National Harbor
 
Washington D.C.
Metro Area
 
50.0
%
 
338,786

 
52.0

 
1.4

 
30.5

 
 
 
 
 
 
 
 
 
 
 
 
 
RioCan Canada (2)
 
Various
 
50.0
%
 
432,448

 
99.4

 
0.9

 
8.6

 
 
 
 
 
 
 
 
 
 
 
 
 
Savannah (1)
 
Savannah, GA
 
50.0
%
 
—

 
21.8

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Westgate
 
Glendale, AZ
 
58.0
%
 
331,739

 
41.6

 
1.1

 
25.3

 
 
 
 
 
 
 
 
 
 
 
 
 
Wisconsin Dells
 
Wisconsin Dells, WI
 
50.0
%
 
265,086

 
15.0

 
0.6

 
12.1

 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
0.2

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
$
292.9

 
$
5.2

 
$
109.0

(1)
Center is currently under development.
(2)
Includes a 155,302 square foot center in Cookstown, Ontario that was acquired in December of 2011, a 161,449 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 3/31/2014


Pro Rata Balance Sheet (dollars in thousands)
 
Consolidated
 
Noncontrolling interests

Company

Prorata portion unconsolidated joint ventures

Prorata balance sheet
ASSETS
 
 
 
 
 
 
 
 
 
Rental property
 
 
 
 
 
 
 
 
 
Land
$
230,415

 
$
(469
)
 
$
229,946

 
$
33,604

 
$
263,550

Buildings, improvements and fixtures
2,013,520

 
(6,585
)
 
2,006,935

 
167,165

 
2,174,100

Construction in progress
20,848

 
(903
)
 
19,945

 
80,117

 
100,062

 
2,264,783

 
(7,957
)
 
2,256,826

 
280,886

 
2,537,712

Accumulated depreciation
(671,807
)
 
690

 
(671,117
)
 
(17,120
)
 
(688,237
)
Total rental property, net
1,592,976

 
(7,267
)
 
1,585,709

 
263,766

 
1,849,475

Cash and cash equivalents
16,906

 
—

 
16,906

 
11,794

 
28,700

Investments in unconsolidated joint ventures
171,040

 
(535
)
 
170,505

 
(170,505
)
 
—

Deferred lease costs and other intangibles, net
157,627

 
—

 
157,627

 
11,271

 
168,898

Deferred debt origination costs, net
10,276

 
—

 
10,276

 
1,010

 
11,286

Prepaids and other assets
81,068

 
—

 
81,068

 
7,310

 
88,378

Total assets
$
2,029,893

 
$
(7,802
)
 
$
2,022,091

 
$
124,646

 
$
2,146,737

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
Debt
 
 
 
 
 
 
 
 
 
Senior, unsecured notes, net of discounts
$
794,407

 
$
—

 
$
794,407

 
$
—

 
$
794,407

Unsecured term loans, net of discounts
267,141

 
—

 
267,141

 
—

 
267,141

Mortgages payable, including premiums
249,418

 
—

 
249,418

 
108,952

 
358,370

Unsecured lines of credit
46,900

 
—

 
46,900

 
—

 
46,900

Total debt
1,357,866

 
—

 
1,357,866

 
108,952

 
1,466,818

Construction trade payables
13,471

 
—

 
13,471

 
10,469

 
23,940

Accounts payable and accruals
46,401

 
—

 
46,401

 
5,225

 
51,626

Deferred financing obligation
28,388

 
—

 
28,388

 
—

 
28,388

Other liabilities
31,942

 
—

 
31,942

 
—

 
31,942

Total liabilities
1,478,068

 
—

 
1,478,068

 
124,646

 
1,602,714

Commitments and contingencies
—

 
—

 
—

 
—

 
—

Equity
 
 
 
 
 
 
 
 
 
Tanger Factory Outlet Centers, Inc.
 
 
 
 
 
 
 
 
 
Common shares
958

 
—

 
958

 
—

 
958

Paid in capital
793,059

 
 
 
793,059

 
—

 
793,059

Accumulated distributions in excess of net income
(272,085
)
 
—

 
(272,085
)
 
—

 
(272,085
)
Accumulated other comprehensive income
(5,515
)
 
—

 
(5,515
)
 
—

 
(5,515
)
Equity attributable to Tanger Factory Outlet Centers, Inc.
516,417

 
—

 
516,417

 
—

 
516,417

Equity attributable to noncontrolling interests
 
 
 
 


 
 
 


Noncontrolling interests in Operating Partnership
27,606

 
—

 
27,606

 
—

 
27,606

Noncontrolling interest in other consolidated partnerships
7,802

 
(7,802
)
 
—

 
—

 
—

Total equity
551,825

 
(7,802
)
 
544,023

 
—

 
544,023

Total liabilities and equity
$
2,029,893

 
$
(7,802
)
 
$
2,022,091

 
$
124,646

 
$
2,146,737


15                
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2014


Pro Rata Statement of Operations (dollars in thousands)
 
 
 
 
 
Consolidated
 
Noncontrolling interests

Company

Prorata portion unconsolidated joint ventures

Prorata statement of operations
REVENUES
 
 
 
 
 
 
 
 
 
Base rentals
$
66,976

 
$
(146
)
 
$
66,830

 
$
5,231

 
$
72,061

Percentage rentals
2,083

 
(3
)
 
2,080

 
177

 
2,257

Expense reimbursements
31,542

 
(57
)
 
31,485

 
2,863

 
34,348

Other income
2,241

 
(2
)
 
2,239

 
357

 
2,596

Total revenues
102,842

 
(208
)
 
102,634

 
8,628

 
111,262

EXPENSES
 
 
 
 
 
 
 
 
 
Property operating
36,027

 
(72
)
 
35,955

 
3,407

 
39,362

General and administrative
10,722

 
(1
)
 
10,721

 
73

 
10,794

Acquisition costs
7

 
—

 
7

 
—

 
7

Abandoned pre-development costs
1,596

 
—

 
1,596

 
—

 
1,596

Depreciation and amortization
26,063

 
(98
)
 
25,965

 
2,593

 
28,558

Total expenses
74,415

 
(171
)
 
74,244

 
6,073

 
80,317

Operating income
28,427

 
(37
)
 
28,390

 
2,555

 
30,945

Interest expense
(14,920
)
 
31

 
(14,889
)
 
(637
)
 
(15,526
)
Income before equity in earnings of unconsolidated joint ventures
13,507

 
(6
)
 
13,501

 
1,918

 
15,419

Equity in earnings of unconsolidated joint ventures
1,933

 
(15
)
 
1,918

 
(1,918
)
 
—

Net income
15,440

 
(21
)
 
15,419

 
—

 
15,419

Noncontrolling interests in Operating Partnership
(803
)
 
—

 
(803
)
 
—

 
(803
)
Noncontrolling interests in other consolidated partnerships
(21
)
 
21

 
—

 
—

 
—

Net income attributable to Tanger Factory Outlet Centers, Inc.
14,616

 
—

 
14,616

 
—

 
14,616

Allocation to participating securities
(429
)
 
—

 
(429
)
 
—

 
(429
)
Net income available to common shareholders
$
14,187

 
$
—

 
$
14,187

 
$
—

 
$
14,187



16                
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2014


External Growth Pipeline Summary
Represents Tanger's expectations as of April 29, 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
 
 
 
 
 
 
 
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 3/31/2014


Debt Outstanding Summary (dollars in thousands)
As of March 31, 2014
 
Principal
Balance
 
Stated
Interest Rate
 
Effective Interest Rate
 
Maturity
Date
Unsecured debt:
 

 
 
 
 
 
 
Unsecured lines of credit (1)
$
46,900

 
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
(5,952
)
 
 

 
 
 
 
Total unsecured debt
$
1,108,448

 
 

 
 
 
 
Secured mortgage debt:
 
 
 
 
 
 
 
Atlantic City, NJ (including premium of $3,992) (2)
$
51,906

 
5.14% - 7.65%

 
5.05
%
 
11/15/2021 - 12/15/2026
Deer Park, NY (net of discount of $1,398) (3)
148,601

 
LIBOR + 1.50%

 
2.80
%
 
8/30/2018
Hershey, PA (including premium of $847) (2)
30,641

 
5.17% - 8.00%

 
3.40
%
 
8/1/2015
Ocean City, MD (including premium of $170) (2)
18,270

 
5.24%

 
4.68
%
 
1/6/2016
Total secured mortgage debt
$
249,418

 
 
 
 
 
 
Tanger's share of unconsolidated JV debt:
 

 
 

 
 
 
 
Galveston/Houston (4)
$
32,500

 
LIBOR + 1.50%

 
 
 
7/01/2017
National Harbor (5)
30,478

 
LIBOR + 1.65%

 
 
 
5/16/2016
RioCan Canada (including premium of $538) (6)
8,578

 
5.10% - 5.75%

 
3.93% - 4.18%

 
6/22/2015 - 5/10/2020
Westgate (7)
25,271

 
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
$
108,952

 
 

 
 
 
 
(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 October 24, 2017 with the option to further extend the maturity for one additional year. Facility fees of 15 basis points annually are charged in arrears based on the full 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)
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 March 31, 2014, 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 March 31, 2014, the balance on the loan was $61.0 million.


18                
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2014


(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 $16.1 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 March 31, 2014, the balance on the loan was $43.6 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 3/31/2014


Future Scheduled Principal Payments (dollars in thousands)
As of March 31, 2014
Year
Tanger
Consolidated
Payments
 
Tanger's Share
of Unconsolidated
JV Payments
 
Total
Scheduled
Payments
2014
2,712

 
238

 
2,950

2015
282,343

 
25,582

 
307,925

2016
30,283

 
31,552

 
61,835

2017 (1)
57,408

 
32,825

 
90,233

2018
153,184

 
345

 
153,529

2019
253,369

 
365

 
253,734

2020
303,566

 
5,382

 
308,948

2021
5,793

 
—

 
5,793

2022
4,436

 
12,125

 
16,561

2023
254,768

 
—

 
254,768

2024 & thereafter
12,345

 
—

 
12,345

 
$
1,360,207

 
$
108,414

 
$
1,468,621

Net Discount on Debt
(2,341
)
 
538

 
(1,803
)
 
$
1,357,866

 
$
108,952

 
$
1,466,818

Senior Unsecured Notes Financial Covenants (2) 
As of March 31, 2014
 
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
>150%
 
184
%
 
Yes
Consolidated Income Available for Debt Service to Annual Debt Service Charge
>1.5
 
4.56

 
Yes
(1)
Includes balances of $46.9 million outstanding under the company's unsecured lines of credit.
(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 3/31/2014


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 3/31/2014