EX-99.2 4 tfoc8k03312006supplemental.htm TFOC 8-K SUPPLEMENTAL OPERATING & FINANCIAL Exchange


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
  

 
15

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.

 
16

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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