EX-99.2 3 skt8kex992march312015.htm EXHIBIT 99.2 SKT 8K EX 99.2 March 31, 2015


Exhibit 99.2
Tanger Factory Outlet Centers, Inc.
  
Supplemental Operating and Financial Data
March 31, 2015


1
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2015


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, 2014.
  
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 3/31/2015


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, 2015
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 3/31/2015


Geographic Diversification

Consolidated Properties
As of March 31, 2015
State
# of Centers
 
GLA
 
% of GLA
South Carolina
5

 
1,593,898

 
14
%
New York
2

 
1,478,808

 
13
%
Pennsylvania
3

 
874,460

 
8
%
Georgia
2

 
692,478

 
6
%
Texas
2

 
619,621

 
5
%
Delaware
1

 
565,707

 
5
%
Alabama
1

 
557,014

 
5
%
North Carolina
3

 
505,123

 
4
%
New Jersey
1

 
489,706

 
4
%
Tennessee
1

 
448,335

 
4
%
Michigan
2

 
432,459

 
4
%
Ohio
1

 
411,776

 
4
%
Missouri
1

 
329,861

 
3
%
Utah
1

 
319,661

 
3
%
Louisiana
1

 
318,666

 
3
%
Connecticut
1

 
289,898

 
3
%
Iowa
1

 
276,230

 
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
36

 
11,345,211

 
100
%
Unconsolidated Joint Venture Properties
 
# of Centers
 
GLA
 
Ownership %
Glendale, AZ
1

 
410,664

 
58.00
%
Charlotte, NC
1

 
397,837

 
50.00
%
Texas City, TX
1

 
352,705

 
50.00
%
National Harbor, MD
1

 
338,786

 
50.00
%
Cookstown, ON
1

 
305,134

 
50.00
%
Ottawa, ON (1)
1

 
287,709

 
50.00
%
Bromont, QC
1

 
161,449

 
50.00
%
Saint-Sauveur, QC
1

 
115,717

 
50.00
%
Total
8

 
2,370,001

 
 
(1)
Excludes square feet to be completed and turned over to an magnet tenant at a later date.

4
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2015


Property Summary - Occupancy at End of Each Period Shown

Consolidated properties
 
 
 
 
 
 
 
 
 
 
Location
Total GLA
3/31/15
 
% Occupied
3/31/15
 
% Occupied
12/31/14
 
% Occupied
9/30/14
 
% Occupied
6/30/14
 
% Occupied
3/31/14
Deer Park, NY
749,074

 
94
%
 
95
%
 
95
%
 
94
%
 
92
%
Riverhead, NY
729,734

 
97
%
 
99
%
 
98
%
 
99
%
 
98
%
Rehoboth Beach, DE
565,707

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

 
96
%
 
96
%
 
96
%
 
98
%
 
96
%
Atlantic City, NJ
489,706

 
94
%
 
94
%
 
90
%
 
93
%
 
93
%
Sevierville, TN
448,335

 
99
%
 
100
%
 
100
%
 
100
%
 
99
%
San Marcos, TX
441,821

 
97
%
 
99
%
 
99
%
 
100
%
 
100
%
Myrtle Beach Hwy 501, SC
425,247

 
96
%
 
96
%
 
98
%
 
98
%
 
98
%
Jeffersonville, OH
411,776

 
98
%
 
98
%
 
97
%
 
97
%
 
95
%
Myrtle Beach Hwy 17, SC
402,791

 
100
%
 
100
%
 
100
%
 
100
%
 
99
%
Charleston, SC
382,117

 
99
%
 
99
%
 
99
%
 
99
%
 
98
%
Pittsburgh, PA
372,958

 
99
%
 
100
%
 
100
%
 
100
%
 
96
%
Commerce II, GA
371,408

 
92
%
 
99
%
 
99
%
 
100
%
 
94
%
Branson, MO
329,861

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

 
100
%
 
100
%
 
100
%
 
99
%
 
99
%
Howell, MI
319,889

 
93
%
 
98
%
 
98
%
 
98
%
 
98
%
Park City, UT
319,661

 
99
%
 
99
%
 
100
%
 
99
%
 
97
%
Mebane, NC
318,910

 
97
%
 
100
%
 
99
%
 
100
%
 
99
%
Gonzales, LA
318,666

 
100
%
 
100
%
 
100
%
 
97
%
 
98
%
Westbrook, CT
289,898

 
95
%
 
96
%
 
95
%
 
97
%
 
99
%
Williamsburg, IA
276,230

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

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

 
85
%
 
87
%
 
87
%
 
90
%
 
90
%
Hershey, PA
247,500

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

 
96
%
 
99
%
 
98
%
 
96
%
 
98
%
Hilton Head II, SC
206,544

 
95
%
 
100
%
 
100
%
 
100
%
 
97
%
Fort Myers, FL
198,877

 
93
%
 
91
%
 
90
%
 
90
%
 
93
%
Ocean City, MD
198,840

 
97
%
 
98
%
 
99
%
 
99
%
 
97
%
Terrell, TX
177,800

 
96
%
 
99
%
 
100
%
 
93
%
 
97
%
Hilton Head I, SC
177,199

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

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

 
88
%
 
94
%
 
94
%
 
94
%
 
98
%
Blowing Rock, NC
104,052

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

 
94
%
 
100
%
 
100
%
 
100
%
 
100
%
Kittery I, ME
51,737

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

 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
Lincoln City, OR (1)
N/A

 
N/A

 
N/A

 
98
%
 
100
%
 
99
%
Total
11,345,211

 
97
%
 
98
%
 
98
%
 
98
%
 
97
%
(1)
Sold Center in December 2014.



5
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2015


Unconsolidated joint venture properties
 
 
 
 
 
 
 
 
 
 
Location
Total GLA
3/31/15
 
% Occupied
3/31/15
 
% Occupied
12/31/14
 
% Occupied
9/30/14
 
% Occupied
6/30/14
 
% Occupied
3/31/14
Glendale, AZ
410,664

 
99
%
 
97
%
 
100
%
 
99
%
 
99
%
Charlotte, NC (1)
397,837

 
98
%
 
99
%
 
99
%
 
N/A

 
N/A

Texas City, TX
352,705

 
98
%
 
100
%
 
100
%
 
99
%
 
99
%
National Harbor, MD
338,786

 
97
%
 
100
%
 
100
%
 
97
%
 
97
%
Cookstown, ON
305,134

 
96
%
 
96
%
 
95
%
 
98
%
 
98
%
Ottawa, ON (2) (3)
287,709

 
92
%
 
95
%
 
N/A

 
N/A

 
N/A

Bromont, QC
161,449

 
73
%
 
81
%
 
81
%
 
81
%
 
81
%
Saint-Sauveur, QC
115,717

 
92
%
 
100
%
 
100
%
 
100
%
 
100
%
Wisconsin Dells, WI (4)
—

 
N/A

 
100
%
 
100
%
 
100
%
 
97
%
Total
2,370,001

 
95
%
 
97
%
 
98
%
 
97
%
 
97
%
(1)
Center opened in July 2014.
(2)
Excludes square feet to be completed and turned over to a magnet tenant at a later date.
(3)
Center opened in October 2014.
(4)
Sold center in February 2015.






6
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2015


Portfolio Occupancy at the 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 3/31/2015


Major Tenants (1) 
Ten Largest Tenants as of March 31, 2015
Tenant
# of
Stores

 
GLA

 
% of
Total GLA

The Gap, Inc.
82

 
877,187

 
7.7
%
Ascena Retail Group, Inc.
86

 
503,209

 
4.4
%
PVH Corp.
86

 
439,971

 
3.9
%
V. F. Corporation
44

 
377,486

 
3.3
%
Nike, Inc.
34

 
374,008

 
3.3
%
Ralph Lauren Corporation
37

 
344,232

 
3.0
%
ANN Inc.
48

 
324,229

 
2.9
%
G-III Apparel Group, Ltd.
65

 
319,452

 
2.8
%
Adidas AG
42

 
278,422

 
2.5
%
Carter's, Inc.
59

 
274,636

 
2.4
%
Total of All Listed Above
583

 
4,112,832

 
36.2
%
(1)
Excludes unconsolidated outlet centers. See table on page 4.





8
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2015


Lease Expirations as of March 31, 2015
(1)
Excludes unconsolidated outlet centers. See table on page 4.

9
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2015


Leasing Activity (1) 
 
3/31/2015
 
6/30/2015
 
9/30/2015
 
12/31/2015
 
Year to Date
 
Prior
Year to
Date (2)
Re-tenanted Space (3):
 
 
 
 
 
 
 
 
 

 
 

Number of leases
71

 

 

 

 
71

 
74

Gross leasable area
269,289

 

 

 

 
269,289

 
265,241

New initial base rent per square foot
$
28.19

 

 

 

 
$
28.19

 
$
29.76

Prior expiring base rent per square foot
$
24.87

 

 

 

 
$
24.87

 
$
24.02

Percent increase
13.4
%
 

 

 

 
13.4
%
 
23.9
%
 
 
 
 
 
 
 
 
 
 
 
 
New straight line base rent per square foot
$
31.73

 

 

 

 
$
31.73

 
$
32.48

Prior straight line base rent per square foot
$
24.65

 

 

 

 
$
24.65

 
$
23.74

Percent increase
28.8
%
 

 

 

 
28.8
%
 
36.8
%
 
 
 
 
 
 
 
 
 
 
 
 
Renewed Space:
 
 
 
 
 
 
 
 
 
 
 
Number of leases
181

 

 

 

 
181

 
174

Gross leasable area
868,786

 

 

 

 
868,786

 
829,697

New initial base rent per square foot
$
24.68

 

 

 

 
$
24.68

 
$
22.46

Prior expiring base rent per square foot
$
22.07

 

 

 

 
$
22.07

 
$
20.24

Percent increase
11.8
%
 

 

 

 
11.8
%
 
11.0
%
 
 
 
 
 
 
 
 
 
 
 
 
New straight line base rent per square foot
$
26.28

 

 

 

 
$
26.28

 
$
23.49

Prior straight line base rent per square foot
$
21.45

 

 

 

 
$
21.45

 
$
19.75

Percent increase
22.5
%
 

 

 

 
22.5
%
 
18.9
%
 
 
 
 
 
 
 
 
 
 
 
 
Total Re-tenanted and Renewed Space (3):
 
 
 
 
 
 
 
 
 
 
 
Number of leases
252

 

 

 

 
252

 
248

Gross leasable area
1,138,075

 

 

 

 
1,138,075

 
1,094,938

New initial base rent per square foot
$
25.51

 

 

 

 
$
25.51

 
$
24.23

Prior expiring base rent per square foot
$
22.73

 

 

 

 
$
22.73

 
$
21.15

Percent increase
12.2
%
 

 

 

 
12.2
%
 
14.6
%
 
 
 
 
 
 
 
 
 
 
 
 
New straight line base rent per square foot
$
27.57

 

 

 

 
$
27.57

 
$
25.67

Prior straight line base rent per square foot
$
22.21

 

 

 

 
$
22.21

 
$
20.72

Percent increase
24.1
%
 

 

 

 
24.1
%
 
23.9
%
(1)
Excludes unconsolidated outlet centers. See table on page 4.
(2)
Excludes the Lincoln City, Oregon outlet center which was sold in December 2014.
(3)
Includes two magnet tenant leases executed during the first quarter of 2015 totaling 30,000 square feet. Excluding these two leases, which represent 11% of the total square feet re-tenanted as of March 31, 2015, the leasing statistics for the first quarter of 2015 would have been as follows:
a.
Re-tenanted space: new initial base rent of $29.69 psf, an 18.6% increase over prior expiring initial base rent of $25.02 psf.
b.
Re-tenanted space: new straight line rent of $33.50 psf, a 33.6% increase over prior straight line rent of $25.07 psf.
c.
Total re-tenanted and renewed space: new initial base rent of $25.76 psf, a 13.5% increase over prior expiring initial base rent of $22.71 psf.
d.
Total re-tenanted and renewed space: new straight line rent of $27.84 psf, a 25.2% increase over prior straight line rent of $22.23 psf.

10
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2015

Consolidated Balance Sheets (dollars in thousands)
 
3/31/2015
 
12/31/2014
 
9/30/2014
 
6/30/2014
 
3/31/2014
ASSETS
 
 
 
 
 
 
 
 
 
Rental property
 
 
 
 
 
 
 
 
 
Land
$
217,994

 
$
217,994

 
$
230,415

 
$
230,415

 
$
230,415

Buildings, improvements and fixtures
1,950,092

 
1,947,083

 
2,043,583

 
2,029,321

 
2,013,520

Construction in progress
154,328

 
98,526

 
75,000

 
37,553

 
20,848

 
2,322,414

 
2,263,603

 
2,348,998

 
2,297,289

 
2,264,783

Accumulated depreciation
(680,739
)
 
(662,236
)
 
(708,515
)
 
(691,339
)
 
(671,807
)
Total rental property, net
1,641,675

 
1,601,367

 
1,640,483

 
1,605,950

 
1,592,976

Cash and cash equivalents
14,661

 
16,875

 
10,824

 
13,240

 
16,906

Rental property held for sale
46,530

 
46,005

 
—

 
—

 
—

Investments in unconsolidated joint ventures
205,083

 
208,050

 
249,659

 
210,131

 
171,040

Deferred lease costs and other intangibles, net
137,478

 
140,883

 
146,642

 
151,738

 
157,627

Deferred debt origination costs, net
11,606

 
12,126

 
9,794

 
9,652

 
10,276

Prepaids and other assets
71,924

 
72,354

 
82,715

 
77,905

 
81,068

Total assets
$
2,128,957

 
$
2,097,660

 
$
2,140,117

 
$
2,068,616

 
$
2,029,893

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
Debt
 
 
 
 
 
 
 
 
 
Senior, unsecured notes, net of discounts
$
793,741

 
$
793,574

 
$
794,729

 
$
794,567

 
$
794,407

Unsecured term loans, net of discounts
267,298

 
267,259

 
267,219

 
267,180

 
267,141

Mortgages payable, including premiums
285,068

 
271,361

 
247,240

 
248,336

 
249,418

Unsecured lines of credit
115,700

 
111,000

 
139,800

 
91,200

 
46,900

Total debt
1,461,807

 
1,443,194

 
1,448,988

 
1,401,283

 
1,357,866

Accounts payable and accruals
80,835

 
69,558

 
79,227

 
54,763

 
59,872

Deferred financing obligation
28,388

 
28,388

 
28,388

 
28,388

 
28,388

Other liabilities
31,076

 
32,634

 
29,300

 
30,024

 
31,942

Total liabilities
1,602,106

 
1,573,774

 
1,585,903

 
1,514,458

 
1,478,068

Commitments and contingencies
—

 
—

 
—

 
—

 
—

Equity
 
 
 
 
 
 
 
 
 
Tanger Factory Outlet Centers, Inc.
 
 
 
 
 
 
 
 
 
Common shares
958

 
955

 
959

 
959

 
958

Paid in capital
794,652

 
791,566

 
801,363

 
797,286

 
793,059

Accumulated distributions in excess of net income
(270,124
)
 
(281,679
)
 
(276,218
)
 
(276,224
)
 
(272,085
)
Accumulated other comprehensive loss
(25,755
)
 
(14,023
)
 
(7,382
)
 
(3,265
)
 
(5,515
)
  Equity attributable to Tanger Factory Outlet
  Centers, Inc.
499,731

 
496,819

 
518,722

 
518,756

 
516,417

Equity attributable to noncontrolling interests
 
 
 
 
 
 
 
 
 
Noncontrolling interests in Operating Partnership
26,481

 
26,417

 
27,595

 
27,602

 
27,606

Noncontrolling interest in other consolidated partnerships
639

 
650

 
7,897

 
7,800

 
7,802

Total equity
526,851

 
523,886

 
554,214

 
554,158

 
551,825

Total liabilities and equity
$
2,128,957

 
$
2,097,660

 
$
2,140,117

 
$
2,068,616

 
$
2,029,893


11
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2015


Consolidated Statements of Operations (dollars and shares in thousands)
 
 
 
Three Months Ended
 
YTD
 
3/31/15
 
12/31/14
 
9/30/14
 
6/30/14
 
3/31/14
 
 
3/31/15
 
3/31/14
REVENUES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Base rentals
$
67,629

 
$
69,732

 
$
69,612

 
$
68,160

 
$
66,976

 
 
$
67,629

 
$
66,976

Percentage rentals
2,229

 
3,675

 
2,634

 
1,915

 
2,083

 
 
2,229

 
2,083

Expense reimbursements
33,364

 
32,075

 
29,463

 
29,452

 
31,542

 
 
33,364

 
31,542

Management, leasing and other services
1,283

 
1,043

 
1,225

 
758

 
566

 
 
1,283

 
566

Other income
1,421

 
1,849

 
2,255

 
1,927

 
1,615

 
 
1,421

 
1,615

Total revenues
105,926

 
108,374

 
105,189

 
102,212

 
102,782

 
 
105,926

 
102,782

EXPENSES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property operating
37,732

 
34,968

 
32,798

 
33,629

 
36,027

 
 
37,732

 
36,027

General and administrative
11,305

 
11,652

 
11,334

 
10,761

 
10,722

 
 
11,305

 
10,722

Acquisition costs
—

 
—

 
—

 
—

 
7

 
 
—

 
7

Abandoned pre-development costs
—

 
769

 
—

 
—

 
1,596

 
 
—

 
1,596

Depreciation and amortization
23,989

 
25,398

 
25,774

 
25,197

 
26,063

 
 
23,989

 
26,063

Total expenses
73,026

 
72,787

 
69,906

 
69,587

 
74,415

 
 
73,026

 
74,415

Operating income
32,900

 
35,587

 
35,283

 
32,625

 
28,367

 
 
32,900

 
28,367

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OTHER INCOME/(EXPENSE)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
(13,089
)
 
(14,527
)
 
(13,902
)
 
(14,582
)
 
(14,920
)
 
 
(13,089
)
 
(14,920
)
Loss on early extinguishment of debt
—

 
(13,140
)
 
—

 
—

 
—

 
 
—

 
—

Gain on sale of assets and interests in unconsolidated entities
13,726

 
7,513

 
—

 
—

 
—

 
 
13,726

 
—

Interest and other income
306

 
234

 
437

 
64

 
60

 
 
306

 
60

Income before equity in earnings of unconsolidated joint ventures
33,843

 
15,667

 
21,818

 
18,107

 
13,507

 
 
33,843

 
13,507

Equity in earnings of unconsolidated joint ventures
2,543

 
2,853

 
2,479

 
1,788

 
1,933

 
 
2,543

 
1,933

Net income
36,386

 
18,520

 
24,297

 
19,895

 
15,440

 
 
36,386

 
15,440

Noncontrolling interests in Operating Partnership
(1,855
)
 
(954
)
 
(1,252
)
 
(1,028
)
 
(803
)
 
 
(1,855
)
 
(803
)
Noncontrolling interests in other consolidated partnerships
(19
)
 
(24
)
 
(42
)
 
(17
)
 
(21
)
 
 
(19
)
 
(21
)
Net income attributable to Tanger Factory Outlet Centers, Inc.
34,512

 
17,542

 
23,003

 
18,850

 
14,616

 
 
34,512

 
14,616

Allocation to participating securities
(408
)
 
(481
)
 
(481
)
 
(481
)
 
(429
)
 
 
(408
)
 
(429
)
Net income available to common shareholders
$
34,104

 
$
17,061

 
$
22,522

 
$
18,369

 
$
14,187

 
 
$
34,104

 
$
14,187

Basic earnings per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
0.36

 
$
0.18

 
$
0.24

 
$
0.20

 
$
0.15

 
 
$
0.36

 
$
0.15

Diluted earnings per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
0.36

 
$
0.18

 
$
0.24

 
$
0.20

 
$
0.15

 
 
$
0.36

 
$
0.15

Weighted average common shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
94,536

 
93,851

 
93,834

 
93,800

 
93,580

 
 
94,536

 
93,580

Diluted
94,697

 
93,922

 
93,902

 
93,874

 
93,649

 
 
94,697

 
93,649


12
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2015


FFO and FAD Analysis (dollars and shares in thousands)
 
 
 
Three Months Ended
 
YTD
 
3/31/15
 
12/31/14
 
9/30/14
 
6/30/14
 
3/31/14
 
 
3/31/15
 
3/31/14
Funds from operations:
 
 
 
 
 
 
 
 
 
 
 
 

 
 

Net income
$
36,386

 
$
18,520

 
$
24,297

 
$
19,895

 
$
15,440

 
 
$
36,386

 
$
15,440

Adjusted for -
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization of real estate assets - consolidated properties
23,637

 
25,052

 
25,425

 
24,782

 
25,702

 
 
23,637

 
25,702

Depreciation and amortization of real estate assets - unconsolidated joint ventures
4,076

 
4,164

 
3,040

 
2,403

 
2,605

 
 
4,076

 
2,605

Gain on sale of assets and interests in unconsolidated entities
(13,726
)
 
(7,513
)
 
—

 
—

 
—

 
 
(13,726
)
 
—

Funds from operations
50,373

 
40,223

 
52,762

 
47,080

 
43,747

 
 
50,373

 
43,747

FFO attributable to noncontrolling interests in other consolidated partnerships
(42
)
 
(46
)
 
(62
)
 
(37
)
 
(40
)
 
 
(42
)
 
(40
)
Allocation to participating securities
(560
)
 
(795
)
 
(1,045
)
 
(949
)
 
(864
)
 
 
(560
)
 
(864
)
Funds from operations available to
    common shareholders
$
49,771

 
$
39,382

 
$
51,655

 
$
46,094

 
$
42,843

 
 
$
49,771

 
$
42,843

Funds from operations per share
$
0.50

 
$
0.40

 
$
0.52

 
$
0.47

 
$
0.43

 
 
$
0.50

 
$
0.43

Funds available for distribution to common shareholders:
 
 

 
 

 
 
 
 
 

Funds from operations
$
49,771

 
$
39,382

 
$
51,655

 
$
46,094

 
$
42,843

 
 
$
49,771

 
$
42,843

Adjusted for -
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate depreciation excluded above
352

 
346

 
349

 
415

 
361

 
 
352

 
361

Amortization of finance costs
599

 
728

 
547

 
554

 
553

 
 
599

 
553

Amortization of net debt discount (premium)
14

 
(328
)
 
(92
)
 
(92
)
 
(89
)
 
 
14

 
(89
)
Amortization of share-based compensation
3,613

 
3,817

 
3,813

 
3,772

 
3,349

 
 
3,613

 
3,349

Straight line rent adjustment
(1,269
)
 
(1,047
)
 
(1,666
)
 
(1,522
)
 
(1,838
)
 
 
(1,269
)
 
(1,838
)
Market rent adjustment
916

 
961

 
734

 
845

 
669

 
 
916

 
669

2nd generation tenant allowances
(956
)
 
(6,718
)
 
(2,570
)
 
(2,876
)
 
(3,378
)
 
 
(956
)
 
(3,378
)
Capital improvements
(2,738
)
 
(7,668
)
 
(12,701
)
 
(12,341
)
 
(4,209
)
 
 
(2,738
)
 
(4,209
)
Adjustments from unconsolidated joint ventures
(479
)
 
(940
)
 
(286
)
 
(39
)
 
(218
)
 
 
(479
)
 
(218
)
Funds available for distribution
$
49,823

 
$
28,533

 
$
39,783

 
$
34,810

 
$
38,043

 
 
$
49,823

 
$
38,043

Funds available for distribution
   per share
$
0.50

 
$
0.29

 
$
0.40

 
$
0.35

 
$
0.39

 
 
$
0.50

 
$
0.39

Dividends paid per share
$
0.240

 
$
0.240

 
$
0.240

 
$
0.240

 
$
0.225

 
 
$
0.240

 
$
0.225

FFO payout ratio
48
%
 
60
%
 
46
%
 
51
%
 
52
%
 
 
48
%
 
52
%
FAD payout ratio
48
%
 
83
%
 
60
%
 
69
%
 
58
%
 
 
48
%
 
58
%
Diluted weighted average common shs.
99,775

 
99,023

 
99,003

 
98,989

 
98,789

 
 
99,775

 
98,789


13
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2015


Unconsolidated Joint Venture Information

The following table details certain information as of March 31, 2015, except for Net Operating Income ("NOI") which is for the three months ended March 31, 2015, 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
%
 
397,837

 
$
44.8

 
$
1.7

 
$
45.0

 
 
 
 
 
 
 
 
 
 
 
 
 
Columbus
 
Columbus, OH
 
50.0
%
 
—

 
1.7

 
—

 
—

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

 
33.2

 
1.1

 
32.5

 
 
 
 
 
 
 
 
 
 
 
 
 
National Harbor
 
National Harbor, MD
 
50.0
%
 
338,786

 
52.0

 
1.4

 
41.9

 
 
 
 
 
 
 
 
 
 
 
 
 
RioCan Canada (2)
 
Various
 
50.0
%
 
870,009

 
148.8

 
1.7

 
7.1

 
 
 
 
 
 
 
 
 
 
 
 
 
Savannah (3) (4)
 
Savannah, GA
 
50.0
%
 
—

 
87.0

 
—

 
27.6

 
 
 
 
 
 
 
 
 
 
 
 
 
Westgate
 
Glendale, AZ
 
58.0
%
 
410,664

 
52.2

 
1.3

 
36.0

 
 
 
 
 
 
 
 
 
 
 
 
 
Wisconsin Dells (5)
 
Wisconsin Dells, WI
 
50.0
%
 
N/A

 
—

 
0.3

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
0.3

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
$
420.0

 
$
7.5

 
$
190.1

(1)
Center opened on July 31, 2014.
(2)
Includes a 161,449 square foot center in Bromont, Quebec, a 305,134 square foot center in Cookstown, Ontario, a 287,709 square foot center in Ottawa, Ontario (which opened on October 17, 2014), a 115,717 square foot center in Saint-Sauveur, Quebec, as well as due diligence costs for additional potential sites in Canada.
(3)
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 Ownership column, which states our legal interest in this venture. Our 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.
(4)
On April 16, 2015 the center opened, which includes approximately 377,000 square feet.
(5)
In February 2015, we closed on the sale of our equity interest in the joint venture in Wisconsin Dells.








14
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2015


Pro Rata Balance Sheet as of March 31, 2015 (dollars in thousands)
 
Consolidated
 
Noncontrolling interests
 
Company
 
Prorata portion unconsolidated joint ventures
 
Prorata balance sheet
ASSETS
 
 
 
 
 
 
 
 
 
Rental property
 
 
 
 
 
 
 
 
 
Land
$
217,994

 
$
—

 
$
217,994

 
$
46,943

 
$
264,937

Buildings, improvements and fixtures
1,950,092

 
(159
)
 
1,949,933

 
253,898

 
2,203,831

Construction in progress
154,328

 
—

 
154,328

 
87,938

 
242,266

 
2,322,414

 
(159
)
 
2,322,255

 
388,779

 
2,711,034

Accumulated depreciation
(680,739
)
 
—

 
(680,739
)
 
(19,783
)
 
(700,522
)
Total rental property, net
1,641,675

 
(159
)
 
1,641,516

 
368,996

 
2,010,512

Cash and cash equivalents
14,661

 
—

 
14,661

 
29,930

 
44,591

Rental property held for sale
46,530

 
—

 
46,530

 
—

 
46,530

Investments in unconsolidated joint ventures
205,083

 
(480
)
 
204,603

 
(204,603
)
 
—

Deferred lease costs and other intangibles, net
137,478

 
—

 
137,478

 
10,166

 
147,644

Deferred debt origination costs, net
11,606

 
—

 
11,606

 
3,217

 
14,823

Prepaids and other assets
71,924

 
—

 
71,924

 
5,594

 
77,518

Total assets
$
2,128,957

 
$
(639
)
 
$
2,128,318

 
$
213,300

 
$
2,341,618

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
Debt
 
 
 
 
 
 
 
 
 
Senior, unsecured notes, net of discounts
$
793,741

 
$
—

 
$
793,741

 
$
—

 
$
793,741

Unsecured term loans, net of discounts
267,298

 
—

 
267,298

 
—

 
267,298

Mortgages payable, including premiums
285,068

 
—

 
285,068

 
190,082

 
475,150

Unsecured lines of credit
115,700

 
—

 
115,700

 
—

 
115,700

Total debt
1,461,807

 
—

 
1,461,807

 
190,082

 
1,651,889

Accounts payable and accruals
80,835

 
—

 
80,835

 
23,836

 
104,671

Deferred financing obligation
28,388

 
—

 
28,388

 
—

 
28,388

Other liabilities
31,076

 
—

 
31,076

 
(618
)
 
30,458

Total liabilities
1,602,106

 
—

 
1,602,106

 
213,300

 
1,815,406

Commitments and contingencies
—

 
—

 
—

 
—

 
—

Equity
 
 
 
 
 
 
 
 
 
Tanger Factory Outlet Centers, Inc.
 
 
 
 
 
 
 
 
 
Common shares
958

 
—

 
958

 
—

 
958

Paid in capital
794,652

 
—

 
794,652

 
—

 
794,652

Accumulated distributions in excess of net income
(270,124
)
 
—

 
(270,124
)
 
—

 
(270,124
)
Accumulated other comprehensive income
(25,755
)
 
—

 
(25,755
)
 
—

 
(25,755
)
Equity attributable to Tanger Factory Outlet Centers, Inc.
499,731

 
—

 
499,731

 
—

 
499,731

Equity attributable to noncontrolling interests
 
 
 
 
 
 
 
 
 
Noncontrolling interests in Operating Partnership
26,481

 
—

 
26,481

 
—

 
26,481

Noncontrolling interest in other consolidated partnerships
639

 
(639
)
 
—

 
—

 
—

Total equity
526,851

 
(639
)
 
526,212

 
—

 
526,212

Total liabilities and equity
$
2,128,957

 
$
(639
)
 
$
2,128,318

 
$
213,300

 
$
2,341,618


15
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2015


Pro Rata Statement of Operations year to date March 31, 2015 (dollars in thousands)
 
 
 
 
 
Consolidated
 
Noncontrolling interests
 
Company
 
Prorata portion unconsolidated joint ventures
 
Prorata statement of operations
 
REVENUES
 
 
 
 
 
 
 
 
 
 
Base rentals
$
67,629

 
$
(3
)
 
$
67,626

 
$
7,623

 
$
75,249

 
Percentage rentals
2,229

 
—

 
2,229

 
406

 
2,635

 
Expense reimbursements
33,364

 
(2
)
 
33,362

 
4,079

 
37,441

 
Management, leasing and other services
1,283

 
—

 
1,283

 
—

 
1,283

 
Other income
1,421

 
—

 
1,421

 
170

 
1,591

 
Total revenues
105,926

 
(5
)
 
105,921

 
12,278

 
118,199

 
EXPENSES
 
 
 
 
 
 
 
 
 
 
Property operating
37,732

 
(1
)
 
37,731

 
4,674

 
42,405

 
General and administrative
11,305

 
—

 
11,305

 
113

 
11,418

 
Acquisition costs
—

 
—

 
—

 
—

 
—

 
Abandoned pre-development costs
—

 
—

 
—

 
—

 
—

 
Depreciation and amortization
23,989

 
(2
)
 
23,987

 
4,057

 
28,044

 
Total expenses
73,026

 
(3
)
 
73,023

 
8,844

 
81,867

 
Operating income
32,900

 
(2
)
 
32,898

 
3,434

 
36,332

 
 
 
 
 
 
 
 
 
 
 
 
OTHER INCOME/(EXPENSE)
 
 
 
 
 
 
 
 
 
 
Interest expense
(13,089
)
 
1

 
(13,088
)
 
(914
)
 
(14,002
)
 
Gain on sale of assets and interests in unconsolidated entities
13,726

 
—

 
13,726

 


 
13,726

 
Interest and other income
306

 
—

 
306

 
5

 
311

 
Income before equity in earnings of unconsolidated joint ventures
33,843

 
(1
)
 
33,842

 
2,525

 
36,367

 
Equity in earnings of unconsolidated joint ventures
2,543

 
(18
)
 
2,525

 
(2,525
)
 
—

 
Net income
36,386

 
(19
)
 
36,367

 
—

 
36,367

 
Noncontrolling interests in Operating Partnership
(1,855
)
 
—

 
(1,855
)
 
—

 
(1,855
)
 
Noncontrolling interests in other consolidated partnerships
(19
)
 
19

 
—

 
—

 
—

 
Net income attributable to Tanger Factory Outlet Centers, Inc.
34,512

 
—

 
34,512

 
—

 
34,512

 
Allocation to participating securities
(408
)
 
—

 
(408
)
 
—

 
(408
)
 
Net income available to common shareholders
$
34,104

 
$
—

 
$
34,104

 
$
—

 
$
34,104

 


16
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2015


External Growth Pipeline Summary As of March 31, 2015
Project/Market
Projected
Opening
Approx Size in
Sq Ft (000s)
Est
Total Net Cost
(millions)
Cost to Date
(millions)
Tanger Ownership Percentage
Est Total Construction Loan (millions)
Amount Drawn
(millions)
Est Future Tanger Capital Requirement (millions)
Projected Stabilized Yield (1)
 
 
 
 
 
 
 
 
 
 
 
UNDER CONSTRUCTION:
 
 
 
 
 
 
 
 
 
New Developments -
 
 
 
 
 
 
 
 
 
Savannah, GA (2)
04/16/15
377

$
106.9

$
91.9

50%
$
93.0

$
55.2

$
—

10.0% - 11.0%
Foxwoods, Mashantucket, CT (2, 3)
05/21/15
313

128.2

86.0

67%
70.3

40.1

12.0

8.5% - 9.5%
Grand Rapids, MI
07/31/15
350

77.2

32.5

100%
—

—

44.7

11.0% - 12.0%
Southaven, MS (Memphis) (2,3)
4Q15
320

69.5

16.6

50%
60.0

—

—

9.5% - 10.5%
Total New Developments
 
1,360

$
381.8

$
227.0

 
$
223.3

$
95.3

$
56.7

10.1%
 
 
 
 
 
 
 
 
 
 
Expansions -
 
 
 
 
 
 
 
 
 
None
 
 
 
 
 
 
 
 
 
Total Expansions
 
—

$
—

$
—

 
$
—

$
—

$
—

—%
Total Under Construction
 
1,360

$
381.8

$
227.0

 
$
223.3

$
95.3

$
56.7

10.1%
 
 
 
 
 
 
 
 
 
 
PRE-DEVELOPMENT:
 
 
 
 
 
 
 
 
 
Columbus, OH
2Q16
355

$
94.9

$
3.4

50%
$
—

$
—

$
45.8

TBD
 
 
 
 
 
 
 
 
 
 
 
 
(1)
While actual yields for individual projects may vary, the company's current targeted stabilized yield on estimated total net cost for development projects is 9% - 11% in the United States and 7% - 9% in Canada. Weighted average projected stabilized yields for projects under construction are calculated using the midpoint of the projected stabilized yield disclosed for each project, or the midpoint of the company's targeted stabilized yield for projects labeled TBD.
(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 Ownership Percentage 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 the gain or losses of asset sales.
(3)
Joint venture is consolidated for financial reporting purposes.
 
 
The company's estimates, projections and judgments with respect to projected opening date, approximate size, estimated total net cost, Tanger ownership percentage, estimated total construction loan, estimated future Tanger capital requirement and projected stabilized yield for new development and expansion projects are subject to adjustment prior to and during the development process. Estimated total net cost shown net of outparcel sales and public financing. 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 Form10-K and Form 10-Q for a discussion of these risks.


17
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2015


Debt Outstanding Summary (dollars in thousands)
As of March 31, 2015
 
Principal
Balance
 
Stated
Interest Rate
 
Effective Interest Rate
 
Maturity
Date
Unsecured debt:
 

 
 
 
 
 
 
Unsecured lines of credit (1)
$
115,700

 
LIBOR + 1.00%

 
 
 
10/24/2017
2020 Senior unsecured notes
300,000

 
6.125%

 
6.219%
 
6/1/2020
2023 Senior unsecured notes
250,000

 
3.875%

 
4.076%
 
12/1/2023
2024 Senior unsecured notes
250,000

 
3.75
%
 
3.819%
 
12/1/2024
Unsecured term loan (2)
250,000

 
LIBOR + 1.05%

 
 
 
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
(6,461
)
 
 

 
 
 
 
Total unsecured debt
$
1,176,739

 
 

 
 
 
 
Secured mortgage debt:
 
 
 
 
 
 
 
Atlantic City, NJ (including premium of $3,594) (3)
$
48,934

 
5.14% - 7.65%

 
5.05%
 
11/15/2021 - 12/8/2026
Deer Park, NY (net of discount of $1,082) (4)
148,918

 
LIBOR + 1.50%

 
2.80%
 
8/30/2018
Hershey, PA (including premium of $251) (3)
29,336

 
5.17% - 8.00%

 
3.40%
 
8/1/2015
Ocean City, MD (including premium of $75) (3)
17,804

 
5.24%

 
4.68%
 
1/6/2016
Foxwoods, CT (5)
40,076

 
LIBOR + 1.65%

 
 
 
12/5/2017
Total secured mortgage debt
$
285,068

 
 
 
 
 
 
Tanger's share of unconsolidated JV debt:
 

 
 

 
 
 
 
Charlotte (6)
$
45,000

 
LIBOR + 1.45%

 
 
 
11/24/2018
Galveston/Houston (7)
32,500

 
LIBOR + 1.50%

 
 
 
7/01/2017
National Harbor (8)
41,850

 
LIBOR + 1.65%

 
 
 
11/13/19
RioCan Canada (including premium of $393) (9)
7,149

 
5.10% - 5.75%

 
3.93% - 4.18%
 
6/22/2015 - 5/10/2020
Savannah (10)
27,623

 
LIBOR + 1.65%

 
 
 
5/21/2017
Westgate (11)
35,960

 
LIBOR + 1.75%

 
 
 
6/27/2015
Total Tanger's share of unconsolidated JV debt
$
190,082

 
 

 
 
 
 
(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)
On July 2, 2014, the credit agreement for the unsecured term loan due February 23, 2019 was amended and restated to change the interest rate from LIBOR + 1.60% to LIBOR + 1.05%.

(3)
Represents mortgages assumed in the acquisitions of various properties.

(4)
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 five 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% through August 14, 2018.


18
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2015


(5)
In December 2014, the joint venture closed on a mortgage loan with the ability to borrow up to $70.3 million. The loan initially matures on December 5, 2017, with two one -year extension options.

(6)
In November 2014, the joint venture closed on a mortgage loan of $90.0 million. The loan initially matures on November 24, 2018, with one one -year extension option.

(7)
In July 2013, the joint venture closed on a mortgage loan with the ability to borrow up to $70.0 million with a maturity date of July 1, 2017 and the option to extend the maturity for one additional year. As of March 31, 2015, the balance on the loan was $65.0 million. The additional $5.0 million is available for future expansion.

(8)
In November 2014, the joint venture amended the initial construction loan to increase the amount available to borrow from $62.0 million to $87.0 million and extended the maturity date until November 13, 2019. As of March 31, 2015, the balance on the loan was $83.7 million. The additional $3.3 million is available for future expansion.

(9)
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 principal balance of $13.5 million and carry a weighted average interest rate of 5.7% and mature in 2015 and 2020, respectively.
 
(10)
In May 2014, the joint venture closed on a construction loan with the ability to borrow up to $97.7 million, of which $4.7 million will be available for future expansion. The construction loan has a maturity date of May 21, 2017, with two options to extend the maturity date each for one additional year. As of March 31, 2015, the balance on the loan was $55.2 million.

(11)
In May 2014, the joint venture amended and restated the initial construction loan to increase the amount available to borrow from $48.3 million to $62.0 million. The amended and restated loan has a maturity date of June 27, 2015 with the option to extend the maturity date for two additional years. As of March 31, 2015, the balance on the loan was $62.0 million. On April 1, 2015, the joint venture exercised the option to extend the maturity date of the loan to June 27, 2017.







19
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2015


Future Scheduled Principal Payments (dollars in thousands)
As of March 31, 2015
Year
Tanger
Consolidated
Payments
 
Tanger's Share
of Unconsolidated
JV Payments
 
Total
Scheduled
Payments
2015
$
31,402

 
$
36,832

 
$
68,234

2016
30,283

 
269

 
30,552

2017 (1)
166,284

 
60,408

 
226,692

2018
153,183

 
45,301

 
198,484

2019
253,369

 
42,169

 
295,538

2020
303,566

 
4,710

 
308,276

2021
5,793

 
—

 
5,793

2022
4,436

 
—

 
4,436

2023
254,768

 
—

 
254,768

2024
255,140

 
—

 
255,140

2025 & thereafter
7,206

 
—

 
7,206

 
$
1,465,430

 
$
189,689

 
$
1,655,119

Net Discount on Debt
(3,623
)
 
393

 
(3,230
)
 
$
1,461,807

 
$
190,082

 
$
1,651,889

Senior Unsecured Notes Financial Covenants (2) 
As of March 31, 2015
 
Required
 
Actual
 
Compliance
Total Consolidated Debt to Adjusted Total Assets
<60%
 
50
%
 
Yes
Total Secured Debt to Adjusted Total Assets
<40%
 
10
%
 
Yes
Total Unencumbered Assets to Unsecured Debt
>150%
 
174
%
 
Yes
Consolidated Income Available for Debt Service to Annual Debt Service Charge
>1.5
 
4.45

 
Yes
(1)
Includes balances of $115.7 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 3/31/2015


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 3/31/2015