8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

___________

FORM 8-K

Current Report Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (date of earliest event reported): April 25, 2006

TANGER FACTORY OUTLET CENTERS, INC.

_________________________________________

(Exact name of registrant as specified in its charter)

North Carolina (State or other jurisdiction of Incorporation)               1-11986 (Commission File Number)            56-1815473          (I.R.S. Employer Identification Number)

             3200 Northline Avenue, Greensboro, North Carolina 27408             

(Address of principal executive offices) (Zip Code)

                           (336) 292-3010                                

(Registrants’ telephone number, including area code)

                           N/A                                

(former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 Soliciting material pursuant to Rule 14a-12 under the Exchange

 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02Results of Operations and Financial Condition

On April 25, 2006, Tanger Factory Outlet Centers, Inc. (the “Company”) issued a press release announcing its results of operations and financial condition as of and for the quarter ended March 31, 2006. A copy of the Company’s press release is furnished as Exhibit 99.1 to this report on Form 8-K. The information contained in this report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specified otherwise.

Item 7.01Regulation FD Disclosure

On April 25, 2006, the Company made publicly available certain supplemental operating and financial information for the quarter ended March 31, 2006. This supplemental operating and financial information is attached to this current report as exhibit 99.2. The information contained in this report on Form 8-K, including Exhibit 99.2, shall not be deemed “filed” with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specified otherwise.

Item 9.01Financial Statements and Exhibits

(c) Exhibits

The following exhibits are included with this Report:

Exhibit 99.1 Press release announcing the results of operations and financial condition of the Company as of and for the quarter ended March 31, 2006.

Exhibit 99.2  Supplemental operating and financial information of the Company as of and for the quarter ended March 31, 2006.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: April 25, 2006

TANGER FACTORY OUTLET CENTERS, INC.

By:/s/ Frank C. Marchisello Jr.

Frank C. Marchisello, Jr.

Executive Vice President, Chief Financial Officer

_____________________________________________________________________________________________

EXHIBIT INDEX

Exhibit No.

99.1    Press release announcing the results of operations and financial condition of the Company as of and for the quarter ended March 31, 2006.

    99.2   Supplemental operating and financial information of the Company as of and for the quarter ended March 31, 2006.

EX-99.1

Tanger Factory Outlet Centers, Inc.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

News Release                           

For Release:  IMMEDIATE RELEASE                            

Contact:       Frank C. Marchisello, Jr.                               

          (336) 834-6834

TANGER REPORTS FIRST QUARTER 2006 RESULTS

30.0% Increase in Total FFO, 18.6% Increase in FFO Per Share

Greensboro, NC, April 25, 2006, Tanger Factory Outlet Centers, Inc. (NYSE:SKT) today reported funds from operations (“FFO”) available to common shareholders, a widely accepted supplemental measure of REIT performance, for the three months ended March 31, 2006 was $18.9 million, or $0.51 per share, as compared to FFO of $14.5 million, or $0.43 per share, for the three months ended March 31, 2005, representing a 30.0% increase in total FFO and an 18.6% per share increase.  During the first quarter of 2006, Tanger recognized a net gain on the sale of real estate of $13.8 million associated with the sale of the company’s outlet centers located in Pigeon Forge, Tennessee and North Branch, Minnesota.  As a result, the company reported net income available to common shareholders for the first quarter of 2006 of $13.6 million, or $0.44 per share, as compared to a net loss of $2.9 million, or $0.11 per share for the first quarter of 2005. 

Net income and FFO per share amounts above are on a diluted basis.  FFO is a supplemental non-GAAP financial measure used as a standard in the real estate industry to measure and compare the operating performance of real estate companies. A complete reconciliation containing adjustments from GAAP net income to FFO is included in this release.

First Quarter Highlights

·                     Sold two non-core outlet centers, receiving net proceeds of $20.2 million

·                     Increased the quarterly common share dividend 5.4% from $0.3225 to $0.34 per share, $1.36 per share annualized, representing the 13^th consecutive year of increased dividends

·                     280 leases signed, totaling 1,163,085 square feet with respect to re-tenanting and renewal activity, including 53.4% of the square footage scheduled to expire during 2006

·                     11.7% increase in straight-line average base rental rates on leases renewed during the quarter

·                     21.2% increase in straight-line average base rental rates on released space during the quarter

·                     95% period-end portfolio occupancy rate

·                     $329 per square foot in reported same-space tenant sales for the rolling twelve months ended March 31, 2006 up 4.3% compared to the twelve months ended March 31, 2005

·                     32.5% debt-to-total market capitalization ratio, 2.93 times interest coverage ratio

Stanley K. Tanger, Chairman of the Board and Chief Executive Officer, commented, “During the first quarter, we began to see the accretion generated by our acquisition of the remaining two-thirds interest in the Charter Oak portfolio of nine outlet centers which occurred on November 23, 2005.  Our earnings also reflect our continued ability to drive rental rates throughout our portfolio of properties.”

Portfolio Operating Results

During the first quarter of 2006, Tanger executed 280 leases, totaling 1,163,085 square feet.  Lease renewals during the first quarter accounted for 942,601 square feet, generated an 11.7% increase in straight-line average base rental rates and represented 53.4% of the approximately 1,760,000 square feet originally scheduled to expire during 2006.  Straight-line average base rental increases on re-tenanted space during the first quarter averaged 21.2% and accounted for the remaining 220,484 square feet.  Same center net operating income increased 4.2% for the first quarter of 2006 compared to the same period in 2005.

Despite a shift in the Easter holiday from March 2005 to April 2006, same-space sales for the first quarter of 2006 increased by 3.4%, as compared to the same period in 2005, while reported same-space sales per square foot for the rolling twelve months ended March 31, 2006 increased 4.3% to $329 per square foot.  Same-space sales is defined as the weighted average sales per square foot reported in space open for the full duration of the comparative periods.  Reported same-store sales for the three months ended March 31, 2006 increased 0.7% compared to the same period in 2005.  Same-store sales is defined as sales for tenants whose stores have been open from January 1, 2005 through the duration of the comparison period.

Investment Activities

The company’s minimum internal 50% pre-leasing requirement has been met on its Charleston, South Carolina project and the Wisconsin Dells, Wisconsin project.  Both projects are under construction and the company expects stores to begin opening in the third quarter of 2006.  Tanger continues the pre-development and leasing of two additional previously announced sites located in Pittsburgh, Pennsylvania and Deer Park, New York.  Both of these projects are expected to be delivered in the fourth quarter of 2007.

Financing Activities and Balance Sheet Summary

During the first quarter of 2006, Tanger sold two non-core properties located in Pigeon Forge, Tennessee and North Branch, Minnesota.  Net proceeds from the sales were approximately $20.2 million which were used to reduce amounts outstanding on the company’s unsecured lines of credit.

On February 16, 2006 the company sold an additional 800,000 7 ½% Class C Preferred Shares, receiving net proceeds of approximately $19.5 million which were also used to reduce amounts outstanding on the company’s unsecured lines of credit.

As of March 31, 2006, Tanger had a total market capitalization of approximately $2.0 billion, an increase of 61.9% since a year ago, with $649.4 million of debt outstanding, equating to a 32.5% debt-to-total market capitalization ratio.  As of March 31, 2006, $548.8 million, or 84.5% of Tanger’s total debt, was at fixed interest rates and the company had $47.1 million outstanding with $102.9 million available on its unsecured lines of credit.  During the first quarter of 2006, Tanger continued to maintain a strong interest coverage ratio of 2.93 times. 

On April 13, 2006, Tanger announced that its Board of Directors approved a 5.4% increase in the annual dividend on its common shares from $1.29 per share to $1.36 per share. Simultaneously, the Board of Directors declared a quarterly dividend of $0.34 per share for the first quarter ended March 31, 2006. A cash dividend of $0.34 per share will be payable on May 15, 2006 to holders of record on April 28, 2006.  Tanger has increased its dividend each year since becoming a public company in May of 1993.

2

2006 FFO Per Share Guidance

Based on current market conditions and the strength and stability of its core portfolio, Tanger is maintaining its previously announced earnings guidance for 2006.  The company currently believes its net income for 2006, excluding gains or losses on the sale of real estate, will be between $0.74 and $0.78 per share and its FFO for 2006 will be between $2.18 and $2.22 per share.  The company’s earnings estimates do not include the impact of any potential gains on the sale of land parcels or the impact of any potential sales or acquisitions of properties.  The following table provides the reconciliation of estimated diluted FFO per share to estimated diluted net income available to common shareholders per share:

For the twelve months ended December 31, 2006:

                                                                                                Low Range                   High Range

Estimated diluted net income per share, excluding

            gain/loss on the sale of real estate                                      $  0.74                          $ 0.78

Minority interest, depreciation and amortization uniquely

            significant to real estate including minority interest

            share and our share of joint ventures                                    (1.44)                            (1.44)

Estimated diluted FFO per share                                                    $ 2.18                            $ 2.22

First Quarter Conference Call

Tanger will host a conference call to discuss its first quarter results for analysts, investors and other interested parties on Wednesday, April 26, 2006, at 10:00 A.M. eastern time.  To access the conference call, listeners should dial 1-877-277-5113 and request to be connected to the Tanger Factory Outlet Centers First Quarter Financial Results call.  Alternatively, the call will be web cast by CCBN and can be accessed at the “Tanger News” section of Tanger Factory Outlet Centers, Inc.'s web site at www.tangeroutlet.com.

A telephone replay of the call will be available from April 26, 2006 starting at 12:00 P.M. Eastern Time through May 5, 2006, by dialing 1-800-642-1687 (conference ID # 7520274).  Additionally, an online archive of the broadcast will also be available through May 5, 2006.

About Tanger Factory Outlet Centers

Tanger Factory Outlet Centers, Inc.(NYSE:SKT), a fully integrated, self-administered and self-managed publicly traded REIT, presently owns 29 centers in 21 states coast to coast, totaling approximately 8.0 million square feet of gross leasable area.  Tanger also manages for a fee and owns a 50% interest in one center containing approximately 402,000 square feet and manages for a fee three centers totaling approximately 293,000 square feet.  Tanger is filing a Form 8-K with the Securities and Exchange Commission that includes a supplemental information package for the quarter ended March 31, 2006. For more information on Tanger Outlet Centers, visit our web site at www.tangeroutlet.com.

Estimates of future net income per share and FFO per share are by definition, and certain other matters discussed in this press release regarding our re-merchandising strategy, the renewal and re-tenanting of space, tenant sales and sales trends, interest rates, funds from operations, the development of new centers, the opening of ongoing expansions, coverage of the current dividend and the impact of sales of land parcels may be, forward-looking statements within the meaning of the federal securities laws.  These forward-looking statements are subject to risks and uncertainties.  Actual results could differ materially from those projected due to various factors including, but not limited to, the risks associated with general economic and local real estate conditions, the availability and cost of capital, the company’s ability to lease its properties, the company’s inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise, and competition.  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, 2005.

3

TANGER FACTORY OUTLET CENTERS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

					Three Months Ended
					March 31,
					2006			2005
					(unaudited		)	(unaudited		)
Revenues
			Base rentals (a)		$	32,965		$	31,216
			Percentage rentals			1,158			880
			Expense reimbursements			12,720			13,939
			Other income (b)			1,355			930
				Total revenues		48,198			46,965
Expenses
			Property operating			14,765			15,700
			General and administrative			4,081			3,043
			Depreciation and amortization			15,950			12,753
				Total expenses		34,796			31,496
Operating income						13,402			15,469
			Interest expense			10,034			8,228
Income before equity in earnings of unconsolidated
			joint ventures, minority interests, discontinued operations
			and loss on sale of real estate			3,368			7,241
Equity in earnings of unconsolidated joint ventures (c)						147			191
Minority interests:
	Consolidated joint venture					---			(6,624	)
	Operating partnership					(381	)		(146	)
Income from continuing operations						3,134			662
Discontinued operations, net of minority interests (d)						11,713			252
Income before loss on sale of real estate						14,847			914
Loss on sale of real estate excluded from discontinued operations,
		net of minority interest				---			(3,843	)
Net income (loss)						14,847			(2,929	)
Preferred share dividends						(1,215	)		---
Net income (loss) available to common shareholders					$	13,632		$	(2,929	)
Basic earnings per common share:
			Income (loss) from continuing operations		$	.06		$	(.12	)
			Net income (loss)			.45			(.11	)
Diluted earnings per common share:
			Income (loss) from continuing operations		$	.06		$	(.12	)
			Net income (loss)			.44			(.11	)
Summary of discontinued operations (d)
Operating income from discontinued operations					$	208		$	308
Gain on sale of real estate						13,833			---
Income from discontinued operations						14,041			308
Minority interest in discontinued operations						(2,328	)		(56	)
Discontinued operations, net of minority interest					$	11,713		$	252

(a)     Includes straight-line rent and market rent adjustments of $914 and $158 for the three months ended March 31, 2006 and 2005, respectively.

(b)     Includes gains on sale of outparcels of land of $110 for the three months ended March 31, 2006.

(c)     Includes Myrtle Beach, South Carolina Hwy 17 property which is operated by us through a 50% ownership joint venture.

(d)     In accordance with SFAS No. 144 “Accounting for the Impairment or Disposal of Long Lived Assets”, the results of operations for properties disposed of during the quarter or classified as held for sale as of the end of the quarter in which we have no significant continuing involvement have been reported above as discontinued operations for the periods presented.

4

TANGER FACTORY OUTLET CENTERS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

									March 31,			December 31,
									2006			2005
									(unaudited)			(unaudited)
ASSETS:
	Rental property
			Land						$	119,969		$	120,715
			Building, improvement and fixtures							1,005,300			1,004,545
			Construction in progress							32,459			27,606
										1,157,728			1,152,866
			Accumulated depreciation							(257,256	)		(253,765	)
			Rental property, net							900,472			899,101
	Cash and cash equivalents									2,153			2,930
	Assets held for sale									---			2,637
	Investments in unconsolidated joint ventures									14,960			13,020
	Deferred charges, net									59,497			64,555
	Other assets									38,148			18,362
			Total assets						$	1,015,230		$	1,000,605
LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS’ EQUITY
Liabilities
		Debt
			Senior, unsecured notes (net of discount of $885 and $901, respectively)						$	349,115		$	349,099
			Mortgages payable (including a debt premium
						of $5,203 and $5,771, respectively)				199,662			201,233
			Unsecured note							53,500			53,500
			Unsecured lines of credit							47,100			59,775
						Total debt				649,377			663,607
	Construction trade payables									14,247			13,464
	Accounts payable and accrued expenses									21,434			23,954
							Total liabilities			685,058			701,025
Commitments
Minority interest in operating partnership										54,124			49,366
Shareholders’ equity
			Preferred shares, 7.5% Class C, liquidation preference $25 per share,
					8,000,000 shares authorized, 3,000,000 and 2,200,000 shares issued
					and outstanding at March 31, 2006 and December 31, 2005,
					respectively					75,000			55,000
			Common shares, $.01 par value, 50,000,000 shares authorized,
				30,941,516 and 30,748,716 shares issued and outstanding at
				March 31, 2006 and December 31, 2005, respectively						309			307
			Paid in capital							330,545			338,688
			Distributions in excess of net income							(136,853	)		(140,738	)
			Deferred compensation							---			(5,501	)
			Accumulated other comprehensive income							7,047			2,458
							Total shareholders’ equity			276,048			250,214
								Total liabilities, minority interest, and shareholders’ equity	$	1,015,230		$	1,000,605

5

TANGER FACTORY OUTLET CENTERS, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

(in thousands, except per share, state and center information)

							Three Months Ended
							March 31,
					2006			2005
FUNDS FROM OPERATIONS (a)
		Net income (loss)			$	14,847			$		(2,929	)
		Adjusted for:
			Minority interest in operating partnership			381					146
			Minority interest adjustment – consolidated joint venture			---					169
			Minority interest, depreciation and amortization
				attributable to discontinued operations		2,444				233
			Depreciation and amortization uniquely significant to
				real estate – consolidated		15,885				12,699
			Depreciation and amortization uniquely significant to
				real estate – unconsolidated joint ventures		379				369
			(Gain) loss on sale of real estate			(13,833	)				3,843
		Funds from operations (FFO)				20,103					14,530
		Preferred share dividends				(1,215	)				---
		Funds from operations available to common shareholders				18,888			$		14,530
	Funds from operations available to common shareholders
			per share – diluted		$	.51			$		.43
WEIGHTED AVERAGE SHARES
	Basic weighted average common shares					30,531					27,304
		Effect of outstanding share and unit options				246					180
	Effect of unvested restricted share awards					84				32
	Diluted weighted average common shares
			(for earnings per share computations)			30,861					27,516
		Convertible operating partnership units (b)				6,067					6,067
		Diluted weighted average common shares
			(for funds from operations per share computations)			36,928					33,583
OTHER INFORMATION
Gross leasable area open at end of period -
	Wholly owned					8,030					4,925
	Partially owned - consolidated (c)					---					3,271
	Partially owned – unconsolidated				402					402
	Managed					293					65
Outlet centers in operation -
	Wholly owned					29					22
	Partially owned - consolidated (c)					---					9
	Partially owned – unconsolidated					1					1
	Managed					3					1
States operated in at end of period (c) (d)						21					22
Occupancy at end of period (c) (d)						95	%				95	%

6

(a)     FFO is a non-GAAP financial measure.  The most directly comparable GAAP measure is net income (loss), to which it is reconciled.  We believe that for a clear understanding of our operating results, FFO should be considered along with net income as presented elsewhere in this report.  FFO is presented because it is a widely accepted financial indicator used by certain investors and analysts to analyze and compare one equity REIT with another on the basis of operating performance.  FFO is generally defined as net income (loss), computed in accordance with generally accepted accounting principles, before extraordinary items and gains (losses) on sale or disposal of depreciable operating properties, plus depreciation and amortization uniquely significant to real estate and after adjustments for unconsolidated partnerships and joint ventures.  We caution that the calculation of FFO may vary from entity to entity and as such the presentation of FFO by us may not be comparable to other similarly titled measures of other reporting companies.  FFO does not represent net income or cash flow from operations as defined by accounting principles generally accepted in the United States of America and should not be considered an alternative to net income as an indication of operating performance or to cash flows from operations as a measure of liquidity.  FFO is not necessarily indicative of cash flows available to fund dividends to shareholders and other cash needs.

(b)     The convertible operating partnership units (minority interest in operating partnership) are not dilutive on earnings per share computed in accordance with generally accepted accounting principles.

(c)     Includes the Charter Oak portfolio which we originally acquired through a joint venture in 2003.  At that time we had a 33.3% ownership interest in the joint venture.  In November 2005, we acquired the remaining 66.7% interest in the joint venture, thus making the portfolio wholly-owned from that date forward.  However, these properties have been consolidated for financial reporting under the accounting guidance of FIN 46R since the initial formation of the joint venture in December 2003.

(d)     Excludes Myrtle Beach, South Carolina Hwy 17 property which is operated by us through a 50% ownership joint venture and three centers for which we only have management responsibilities.

7

EX-99.2

Tanger Factory Outlet Centers, Inc.

Supplemental Operating and Financial Data

March 31, 2006

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, 2005.

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

Table of Contents

Section

Portfolio Data:

Geographic Diversification	4
Property Summary - Occupancy at End of Each Period Shown (1)	5
Portfolio Occupancy at the End of Each Period (1)	6
Major Tenants (1)	7
Lease Expirations as of March 31, 2006	8
Leasing Activity (1)	9

Financial Data:

	Consolidated Balance Sheets	10
	Consolidated Statements of Operations	11
	FFO and FAD Analysis	12
	Unconsolidated Joint Venture Information	13
	Debt Outstanding Summary	16
	Senior Unsecured Notes Financial Covenants	16
	Future Scheduled Principal Payments	17
Investor Information		18

3

Geographic Diversification

As of March 31, 2006
State	# of Centers	GLA	% of GLA
South Carolina	2	820,511	10%
Georgia	3	820,274	10%
New York	1	729,315	9%
Alabama	2	636,668	8%
Texas	2	620,000	8%
Delaware	1	568,873	7%
Michigan	2	436,751	6%
Tennessee	1	419,038	5%
Utah	1	300,602	4%
Connecticut	1	291,051	4%
Missouri	1	277,883	4%
Iowa	1	277,230	3%
Oregon	1	270,280	3%
Illinois	1	256,514	3%
Pennsylvania	1	255,152	3%
Louisiana	1	243,499	3%
New Hampshire	1	227,998	3%
Florida	1	198,924	3%
North Carolina	2	186,458	2%
California	1	108,950	1%
Maine	2	84,313	1%
Total (1)	29	8,030,284	100%

(1)   Excludes one 401,992 square foot center in Myrtle Beach, SC of which Tanger owns a 50% interest through a joint venture arrangement and three centers totaling 293,462 square feet for which we only have management responsibilities.

4

Property Summary - Occupancy at End of Each Period Shown (1)

Location	Total GLA 3/31/06	% Occupied 3/31/06	% Occupied 12/31/05	% Occupied 9/30/05	% Occupied 6/30/05	% Occupied 3/31/05
Riverhead, NY	729,315	98%	99%	100%	99%	99%
Rehoboth, DE	568,873	98%	99%	99%	100%	99%
Foley, AL	557,093	94%	97%	98%	99%	95%
San Marcos, TX	442,510	97%	100%	99%	99%	98%
Myrtle Beach, SC	427,417	91%	93%	90%	93%	92%
Sevierville, TN	419,038	100%	100%	100%	100%	99%
Hilton Head, SC	393,094	81%	88%	87%	90%	89%
Commerce II, GA	340,656	98%	97%	99%	99%	96%
Howell, MI	324,631	95%	99%	98%	96%	96%
Park City, UT	300,602	100%	100%	99%	99%	98%
Locust Grove, GA	293,868	95%	100%	99%	98%	97%
Westbrook, CT	291,051	90%	94%	92%	92%	92%
Branson, MO	277,883	99%	100%	100%	100%	100%
Williamsburg, IA	277,230	99%	100%	99%	96%	96%
Lincoln City, OR	270,280	99%	94%	94%	92%	91%
Tuscola, IL	256,514	70%	75%	76%	76%	75%
Lancaster, PA	255,152	99%	100%	100%	99%	99%
Gonzales, LA	243,499	100%	100%	98%	100%	100%
Tilton, NH	227,998	97%	100%	96%	96%	91%
Fort Myers, FL	198,924	91%	95%	91%	91%	92%
Commerce I, GA	185,750	87%	90%	90%	86%	76%
Terrell, TX	177,490	99%	100%	99%	99%	100%
West Branch, MI	112,120	98%	100%	100%	97%	98%
Barstow, CA	108,950	95%	95%	93%	98%	100%
Blowing Rock, NC	104,280	100%	100%	100%	100%	100%
Nags Head, NC	82,178	97%	100%	98%	100%	100%
Boaz, AL	79,575	92%	95%	95%	95%	95%
Kittery I, ME	59,694	100%	100%	100%	100%	100%
Kittery II, ME	24,619	100%	100%	100%	100%	100%
Pigeon Forge, TN	n/a	n/a	99%	95%	96%	93%
North Branch, MN	n/a	n/a	100%	100%	100%	98%
Total	8,030,284	95%	97%	96%	97%	95%

(1)   Excludes one 401,992 square foot center in Myrtle Beach, SC of which Tanger owns a 50% interest through a joint venture arrangement and three centers totaling 293,462 square feet for which we only have management responsibilities.

5

Portfolio Occupancy at the End of Each Period (1)

 95% 97% 96% 97% 95%   97%  96%95%94% 

03/06  12/05 09/05 06/05 03/05 12/04 09/04 06/04 03/04

(1)   Excludes one 401,992 square foot center in Myrtle Beach, SC of which Tanger owns a 50% interest through a joint venture arrangement and three centers totaling 293,462 square feet for which we only have management responsibilities.

6

Major Tenants (1)

Ten Largest Tenants As of March 31, 2006
Tenant	# of   Stores	GLA	% of     Total GLA
The Gap, Inc.	55	546,639	6.8%
Phillips-Van Heusen	89	428,539	5.4%
Liz Claiborne	39	306,929	3.8%
Adidas	32	256,671	3.2%
VF Factory Outlet	30	252,305	3.1%
Dress Barn, Inc.	28	199,480	2.5%
Polo Ralph Lauren	23	188,628	2.3%
Jones Retail Corporation	64	182,323	2.3%
Carter’s	37	179,326	2.3%
Brown Group Retail, Inc.	38	162,638	2.0%
Total of All Listed Above	435	2,703,478	33.7%

(1)   Excludes one 401,992 square foot center in Myrtle Beach, SC of which Tanger owns a 50% interest through a joint venture arrangement and three centers totaling 293,462 square feet for which we only have management responsibilities.

7

Lease Expirations as of March 31, 2006

Percentage of Total Gross Leasable Area (1)

9% 20% 17% 19% 16% 11% 3% 1% 1% 2% 1%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016+

Percentage of Total Annualized Base Rent (1)

9%  19% 17% 18%   19% 11% 2% 1% 1% 2% 1%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016+

(1)   Excludes one 401,992 square foot center in Myrtle Beach, SC of which Tanger owns a 50% interest through a joint venture arrangement and three centers totaling 293,462 square feet center for which we only have management responsibilities.

8

Leasing Activity (1)

		03/31/06		06/30/06	09/30/06	12/31/06		Year to ate			Prior Year to Date
Re-tenanted Space:
Number of leases		60						60			42
Gross leasable area		220,484						220,484			204,830
New base rent per square foot	$	17.98					$	17.98		$	17.25
Prior base rent per square foot	$	15.48					$	15.48		$	16.60
Percent increase in rent per square foot		16.1	%					16.1	%		3.9	%
New average base rent per square foot	$	18.61					$	18.61			Not available
Prior average base rent per square foot	$	15.35					$	15.35			Not available
Percent increase in average rent        per square foot		21.2	%					21.2	%		Not available
Renewed Space:
Number of leases		220						220			169
Gross leasable area		942,601						942,601			739,494
New base rent per square foot	$	17.71					$	17.71		$	17.35
Prior base rent per square foot	$	16.37					$	16.37		$	15.97
Percent increase in rent per square foot		8.2	%					8.2	%		8.6	%
New average base rent per square foot	$	17.91					$	17.91			Not available
Prior average base rent per square foot	$	16.03					$	16.03			Not available
Percent increase in average rent         per square foot		11.7	%					11.7	%		Not available
Total Re-tenanted and Renewed Space:
Number of leases		280						280			211
Gross leasable area		1,163,085						1,163,085			944,325
New base rent per square foot	$	17.76					$	17.76		$	17.33
Prior base rent per square foot	$	16.20					$	16.20		$	16.10
Percent increase in rent per square foot		9.6	%					9.6	%		7.6	%
New average base rent per square foot	$	18.05					$	18.05			Not available
Prior average base rent per square foot	$	15.90					$	15.90			Not available
Percent increase in average rent        per square foot		13.5	%					13.5	%		Not available

(1)   Excludes one 401,992 square foot center in Myrtle Beach, SC of which Tanger owns a 50% interest through a joint venture arrangement and three centers totaling 293,462 square feet for which we only have management responsibilities.

9

 Consolidated Balance Sheets (dollars in thousands)

		3/31/06			12/31/05			9/30/05			6/30/05			3/31/05
Assets
Rental property
Land	$	119,969		$	120,715		$	113,284		$	113,284		$	113,355
Buildings		1,005,300			1,004,545			960,105			956,440			954,758
Construction in progress		32,459			27,606			8,797			6,044			1,173
Total rental property		1,157,728			1,152,866			1,082,186			1,075,768			1,069,286
Accumulated depreciation		(257,256	)		(253,765	)		(247,179	)		(237,688	)		(228,252	)
Total rental property - net		900,472			899,101			835,007			838,080			841,034
Cash & cash equivalents		2,153			2,930			6,219			3,543			6,531
Short-term investments		--			--			20,000			--			--
Assets held for sale		--			2,637			--			--			--
Investments in unconsolidated joint ventures		14,960			13,020			6,913			6,764			6,966
Deferred charges - net		59,497			64,555			52,873			54,818			55,611
Other assets		38,148			18,362			19,982			15,021			14,570
Total assets	$	1,015,230		$	1,000,605		$	940,994		$	918,226		$	924,712
Liabilities, minority interests & shareholders’ equity
Liabilities
Debt
Senior, unsecured notes, net of discount	$	349,115		$	349,099		$	100,000		$	100,000		$	100,000
Mortgages payable, including premium		199,662			201,233			281,069			290,197			305,983
Unsecured note		53,500			53,500			53,500			53,500			53,500
Unsecured lines of credit		47,100			59,775			--			45,330			33,455
Total debt		649,377			663,607			434,569			489,027			492,938
Construction trade payables		14,247			13,464			8,294			9,231			9,781
Accounts payable & accruals		21,434			23,954			14,849			16,984			25,753
Total liabilities		685,058			701,025			457,712			515,242			528,472
Minority interests
Consolidated joint venture		--			--			227,234			225,103			223,895
Operating partnership		54,124			49,366			42,220			31,963			31,045
Total minority interests		54,124			49,366			269,454			257,066			254,940
Shareholders’ equity
Preferred shares		75,000			55,000			--			--			--
Common shares		309			307			307			277			276
Paid in capital		330,545			338,688			349,287			278,811			277,857
Distributions in excess of net income		(136,853	)		(140,738	)		(130,955	)		(126,436	)		(129,917	)
Deferred compensation		--			(5,501	)		(5,930	)		(6,372	)		(6,844	)
Accum. other compreh. income (loss)		7,047			2,458			1,119			(362	)		(72	)
Total shareholders’ equity		276,048			250,214			213,828			145,918			141,300
Total liabilities, minority interests & shareholders’ equity	$	1,015,230		$	1,000,605		$	940,994		$	918,226		$	924,712

10

Consolidated Statements of Operations (dollars and shares in thousands)

	Three Months Ended															YTD
		03/06			12/05			09/05			06/05			03/05			03/06			03/05
Revenues
Base rentals	$	32,965		$	33,855		$	33,311		$	32,845		$	31,216		$	32,965		$	31,216
Percentage rentals		1,158			2,418			1,794			1,254			880			1,158			880
Expense reimbursements		12,720			15,255			13,925			12,296			13,939			12,720			13,939
Other income		1,355			2,098			1,563			1,182			930			1,355			930
Total revenues		48,198			53,626			50,593			47,577			46,965			48,198			46,965
Expenses
Property operating		14,765			17,347			15,554			14,143			15,700			14,765			15,700
General & administrative		4,081			3,509			3,578			3,711			3,043			4,081			3,043
Depreciation & amortization		15,950			12,246			11,923			11,243			12,753			15,950			12,753
Total expenses		34,796			33,102			31,055			29,097			31,496			34,796			31,496
Operating income		13,402			20,524			19,538			18,480			15,469			13,402			15,469
Interest expense (1)		10,034			18,600			7,932			8,167			8,228			10,034			8,228
Income before equity in earnings of    unconsolidated joint ventures, minority    interests, discontinued operations and loss    on sale of real estate excluded from    discontinued operations		3,368			1,924			11,606			10,313			7,241			3,368			7,241
Equity in earnings of unconsolidated    joint ventures		147			165			255			268			191			147			191
Minority interests:
Consolidated joint venture		--			(3,832	)		(6,860	)		(6,727	)		(6,624	)		--			(6,624	)
Operating partnership		(381	)		379			(881	)		(700	)		(146	)		(381	)		(146	)
Income (loss) from continuing operations		3,134			(1,364	)		4,120			3,154			662			3,134			662
Discontinued operations (2)		11,713			1,489			293			326			252			11,713			252
Income before loss on sale of real    estate		14,847			125			4,413			3,480			914			14,847			914
Loss on sale of real estate excluded from    discontinued operations		--			--			--			--			(3,843	)		--			(3,843	)
Net income (loss)		14,847			125			4,413			3,480			(2,929	)		14,847			(2,929	)
Less applicable preferred share dividends		(1,215	)		(538	)		--			--			--			(1,215	)		--
Net income (loss) available to common    shareholders	$	13,632		$	(413	)	$	4,413		$	3,480		$	(2,929	)	$	13,632		$	(2,929	)
Basic earnings per common share:
Income (loss) from continuing operations	$	.06		$	(.06	)	$	.15		$	.12		$	(.12	)	$	.06		$	(.12	)
Net income (loss)	$	.45		$	(.01	)	$	.16		$	.13		$	(.11	)	$	.45		$	(.11	)
Diluted earnings per common share:
Income (loss) from continuing operations	$	.06		$	(.06	)	$	.14		$	.11		$	(.12	)	$	.06		$	(.12	)
Net income (loss)	$	.44		$	(.01	)	$	.15		$	.13		$	(.11	)	$	.44		$	(.11	)
Weighted average common shares:
Basic		30,531			30,452			28,374			27,357			27,304			30,531			27,304
Diluted		30,861			30,753			28,680			27,576			27,516			30,861			27,576

(1)   Three months ended December 31, 2005 includes prepayment premium and deferred loan cost write off of $9.9 million.

(2)   In accordance with SFAS No. 144 “Accounting for the Impairment or Disposal of Long Lived Assets”, the results of operations for properties sold for which we have no significant continuing involvement, including any gain or loss on such sales, and properties classified as assets held for sale, have been reported above as discontinued operations for both the current and prior periods presented.

11

FFO and FAD Analysis (dollars and shares in thousands)

	Three Months Ended															YTD
		03/06			12/05			09/05			06/05			03/05			03/06			03/05
Funds from operations:
Net income	$	14,847		$	125		$	4,413		$	3,480		$	(2,929	)	$	14,847		$	(2,929	)
Adjusted for -
Minority interest in operating       partnership		381			(379	)		881			700			146			381			146
Minority interest adjustment       consolidated joint venture		--			234			(441	)		(277	)		169			--			169
Minority interest, depreciation       and amortization in       discontinued operations		2,444			480			247			249			233			2,444			233
Depreciation and amortization     uniquely significant to real estate -     wholly owned		15,885			12,181			11,856			11,181			12,699			15,885			12,699
Depreciation and amortization     uniquely significant to real estate -     joint ventures		379			379			375			370			369			379			369
(Gain) loss on sale of real estate		(13,833	)		--			--			--			3,843			(13,833	)		3,843
Preferred share dividend		(1,215	)		(538	)		--						--			(1,215	)		--
Funds from operations	$	18,888		$	12,482		$	17,331		$	15,703		$	14,530		$	18,888		$	14,530
Funds from operations per share	$	.51		$	.34		$	.50		$	.47		$	.43		$	.51		$	.43
Funds available for distribution:
Funds from operations	$	18,888		$	13 $ 12,482		$	13 $ 17,331		$	13 $ 15,703		$	13 $14,530		$	18,888		$	13 $14,530
Adjusted For -
Corporate depreciation       excluded above		65			66			66			62			55			65			55
Amortization of finance costs		298			276			323			341			355			298			355
Early extinguishment of debt		--			9,866			--			--			--			--			--
Amortization of share compensation		481			429			426			468			242			481			242
Straight line rent adjustment		(464	)		(393	)		(706	)		(539	)		(112	)		(464	)		(112	)
Market rent adjustment		(458	)		(158	)		76			(613	)		(46	)		(458	)		(46	)
Market rate interest adjustment		(568	)		(609	)		(652	)		(643	)		(629	)		(568	)		(629	)
2nd generation tenant allowances		(1,650	)		(2,130	)		(1,290	)		(2,346	)		(4,462	)		(1,650	)		(4,462	)
Capital improvements		(2,424	)		(1,572	)		(1,841	)		(2,231	)		(952	)		(2,424	)		(952	)
Consolidated joint venture minority interest share of adjustments		--			(234	)		441			277			(169	)		--			(169	)
Funds available for distribution	$	14,168		$	18,023		$	14,174		$	10,479		$	8,812		$	14,168		$	8,812
Funds available for distribution    per share	$	.38		$	.49		$	.41		$	.31		$	.26		$	.38		$	.26
Dividends paid per share	$	.3225		$	.3225		$	.3225		$	.3225		$	.3125		$	.3225		$	.3125
FFO payout ratio		63	%		95	%		65	%		69	%		73	%		63	%		73	%
FAD payout ratio		85	%		66	%		79	%		104	%		120	%		85	%		120	%
Diluted weighted average common shs.		36,928			36,820			34,747			33,643			33,583			36,928			33,583

12

Unconsolidated Joint Venture Information - All

Summary Balance Sheets (dollars in thousands)

		3/31/06		12/31/05		09/30/05		6/30/05		3/31/05		Tanger’s Share as of 3/31/06 (1)
Assets
Investment properties at cost - net	$	64,463	$	64,915	$	65,489	$	67,446	$	67,399	$	27,844
Construction in progress		26,562		15,734		96		--		--		13,281
Cash and cash equivalents		5,284		6,355		4,171		4,253		4,319		2,114
Deferred charges - net		1,729		1,548		1,340		1,433		1,305		864
Other assets		10,647		6,690		6,073		4,245		3,869		3,964
Total assets	$	108,685	$	95,242	$	77,169	$	77,377	$	76,892	$	48,067
Liabilities & Owners’ Equity
Mortgage payable	$	69,323	$	61,081	$	61,066	$	61,024	$	60,254	$	30,440
Member loans payable		--		--		550		--		--		--
Construction trade payables		6,646		6,588		215		477		426		3,323
Accounts payable & other liabilities		1,035		1,177		1,239		1,956		828		427
Total liabilities		77,004		68,846		63,070		63,457		61,508		34,190
Owners’ equity		31,681		26,396		14,099		13,920		15,384		13,877
Total liabilities & owners’ equity	$	108,685	$	95,242	$	77,169	$	77,377	$	76,892	$	48,067

Summary Statements of Operations (dollars in thousands)

	Three Months Ended										YTD
		03/06		12/05		09/05		06/05		03/05		03/06		03/05
Revenues	$	2,657	$	2,730	$	2,735	$	2,933	$	2,511	$	2,657	$	2,511
Expenses
Property operating		1,030		1,050		888		1,067		974		1,030		974
General & administrative		7		5		4		15		--		7		---
Depreciation & amortization		786		789		777		769		767		786		767
Total expenses		1,823		1,844		1,669		1,851		1,741		1,823		1,741
Operating income		834		886		1,066		1,082		770		834		770
Interest expense		569		586		584		574		417		569		417
Net income	$	265	$	300	$	482	$	508	$	353	$	265	$	353
Tanger’s share of:
Total revenues less property      operating and general &      administrative expenses (“NOI”)	$	810	$	837	$	922	$	925	$	769	$	810	$	769
Net income	$	147	$	165	$	255	$	268	$	191	$	147	$	191
Depreciation (real estate related)	$	379	$	379	$	375	$	370	$	369	$	379	$	369

13

Unconsolidated Joint Venture Information - TWMB Associates, LLC

Summary Balance Sheets (dollars in thousands)

		03/31/06		12/31/05		09/30/05		06/30/05		03/31/05		Tanger’s Share as of 03/31/06
Assets
Investment properties at cost - net	$	38,137	$	38,817	$	39,486	$	40,119	$	40,734	$	19,069
Cash and cash equivalents		2,093		1,993		2,268		2,080		1,660		1,047
Deferred charges - net		1,159		1,257		1,339		1,432		1,304		580
Other assets		2,473		1,760		1,731		1,977		1,584		1,236
Total assets	$	43,862	$	43,827	$	44,824	$	45,608	$	45,282	$	21,932
Liabilities & Owners’ Equity
Mortgage payable	$	35,800	$	35,800	$	35,800	$	35,800	$	35,041	$	17,900
Construction trade payables		174		184		215		477		426		87
Accounts payable & other liabilities		491		176		694		1,411		695		246
Total liabilities		36,465		36,160		36,709		37,688		36,162		18,233
Owners’ equity		7,397		7,667		8,115		7,920		9,120		3,699
Total liabilities & owners’ equity	$	43,862	$	43,827	$	44,824	$	45,608	$	45,282	$	21,932

Summary Statements of Operations (dollars in thousands)

	Three Months Ended										YTD
	03/06		12/05		09/05		06/05		03/05		03/06		03/05
Revenues	$	2,657	$	2,730	$	2,735	$	2,933	$	2,511	$	2,657	$	2,511
Expenses
Property operating		1,030		1,050		888		1,067		974		1,030		974
General & administrative		7		5		4		15		--		7		--
Depreciation & amortization		786		789		777		769		767		786		767
Total expenses		1,823		1,844		1,669		1,851		1,741		1,823		1,741
Operating income		834		886		1,066		1,082		770		834		770
Interest expense		569		586		584		574		417		569		417
Net income	$	265	$	300	$	482	$	508	$	353	$	265	$	353
Tanger’s share of:
Total revenues less property      operating and general &      administrative expenses (“NOI”)	$	810	$	837	$	922	$	925	$	769	$	810	$	769
Net income	$	147	$	165	$	255	$	268	$	191	$	147	$	191
Depreciation (real estate related)	$	379	$	379	$	375	$	370	$	369	$	379	$	369

14

Unconsolidated Joint Venture Information - Tanger Wisconsin Dells, LLC

Summary Balance Sheets (dollars in thousands)

		03/31/06		12/31/05		09/30/05		06/30/05		03/31/05		Tanger’s Share as of 03/31/06
Assets
Construction in progress		26,562	$	15,734	$	96	$	--	$	--	$	13,281
Cash and cash equivalents		18		2,305		291		100		--		9
Deferred charges - net		569		290		--		--		--		285
Other assets		18		12		263		--		--		9
Total assets	$	27,167	$	18,341	$	650	$	100	$	--	$	13,584
Liabilities & Owners’ Equity
Mortgage payable	$	8,194	$	--	$	--	$	--	$	--	$	4,097
Member loans payable		--		--		550		--		--		--
Construction trade payables		6,472		6,404		--		--		--		3,236
Accounts payable & other liabilities		1		458		--		--		--		1
Total liabilities		14,667		6,862		550		--		--		7,334
Owners’ equity		12,500		11,479		100		100		--		6,250
Total liabilities & owners’ equity	$	27,167	$	18,341	$	650	$	100	$	--	$	13,584

Unconsolidated Joint Venture Information - Deer Park Enterprise, LLC

Summary Balance Sheets (dollars in thousands)

		03/31/06		12/31/05		09/30/05		06/30/05		03/31/05		Tanger’s Share as of 03/31/06 (1)
Assets
Investment properties at cost - net	$	26,326	$	26,098	$	26,003	$	27,327	$	26,665		8,775
Cash and cash equivalents		3,173		2,057		1,612		2,073		2,659		1,058
Deferred charges - net		1		1		1		1		1		--
Other assets		8,156		4,918		4,079		2,268		2,285		2,719
Total assets	$	37,656	$	33,074	$	31,695	$	31,669	$	31,610	$	12,552
Liabilities & Owners’ Equity
Mortgage payable	$	25,329	$	25,281	$	25,266	$	25,224	$	25,213	$	8,443
Construction trade payables		--		--		--		--		--		--
Accounts payable & other liabilities		543		543		545		545		133		181
Total liabilities		25,872		25,824		25,811		25,769		25,346		8,624
Owners’ equity		11,784		7,250		5,884		5,900		6,264		3,928
Total liabilities & owners’ equity	$	37,656	$	33,074	$	31,695	$	31,669	$	31,610	$	12,552

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Debt Outstanding Summary (dollars in thousands)

As of March 31, 2006
		Principal Balance		Interest Rate		Maturity Date
Mortgage debt
Blowing Rock, NC	$	9,143		8.860	%	09/01/10
Nags Head, NC		6,205		8.860	%	09/01/10
COROC Holdings, LLC, including centers    located in Rehoboth Beach, DE; Foley, AL;    Myrtle Beach (Hwy 501), SC; Hilton Head,    SC; Park City, UT; Westbrook, CT;    Lincoln City, OR; Tuscola, IL; Tilton, NH		179,111		6.590	%	07/10/08
Net debt premium, COROC Holdings, LLC (1)		5,203
Total mortgage debt		199,662
Corporate debt
Unsecured term loan		53,500		Libor + 0.85	%	03/26/08
Unsecured credit facilities		47,100		Libor + 0.85	%	(2	)
2008 Senior unsecured notes		100,000		9.125	%	02/15/08
2015 Senior unsecured notes		250,000		6.15	%	11/15/15
Net discount, senior unsecured notes		(885	)
Total corporate debt		449,715
Total debt	$	649,377

Senior Unsecured Notes Financial Covenants (3)

As of March 31, 2006
	Required	Actual	Compliance
Total Consolidated Debt to Adjusted Total Assets	60%	52%	Yes
Total Secured Debt to Adjusted Total Assets	40%	16%	Yes
Total Unencumbered Assets to Unsecured Debt	135%	147%	Yes
Consolidated Income Available for Debt Service to Annual Debt Service Charge	2.00	3.71	Yes

(1)   Represents a net premium on mortgage debt related to the Charter Oak acquisition.

(2)   The unsecured credit facilities expire at various times from June 30, 2008 to February 28, 2009.

(3)   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.

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Future Scheduled Principal Payments (dollars in thousands)

As of March 31, 2005
Year		Scheduled Amortization Payments		Balloon Payments		Total Scheduled Payments
2006	$	2,846	$	--	$	2,846
2007		4,121		--		4,121
2008		2,688		370,951		373,639
2009		394		--		394
2010		181		13,878		14,059
2011		--		--		--
2012		--		--		--
2013		--		--		--
2014		--		--		--
2015 & thereafter				250,000		250,000
	$	10,230	$	634,829	$	645,059
Net Premium on Debt						4,318
					$	649,377

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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) 292-3010 ext 6825

Fax: (336) 297-0931

e-mail: tangermail@tangeroutlet.com

Mail:  Tanger Factory Outlet Centers, Inc.

           3200 Northline Avenue

           Suite 360

           Greensboro, NC 27408

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