EX-99.2 3 d26561_ex99-2.htm HTML


 

     
   

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Tanger Factory Outlet Centers, Inc.

 

Supplemental Operating and Financial Data

 

June 30, 2010

 

 

 

 

 

                 
  1     Supplemental Operating and Financial Data for the
Quarter Ended 6/30/10 		       

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, 2009.

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 6/30/10 		       

Table of Contents

                                   
  Section                          
                             
                             
  Portfolio Data:                          
        Geographic Diversification                       4  
        Property Summary - Occupancy at End of Each Period Shown                       5  
        Portfolio Occupancy at the End of Each Period                       6  
        Major Tenants                       7  
        Lease Expirations as of June 30, 2010                       8  
        Leasing Activity                       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  
        Future Scheduled Principal Payments                       17  
        Senior Unsecured Notes Financial Covenants                       17  
                             
  Investor Information                       18  

 

 

 

 

 

 

 

 

 

 

 

 

 

                 
  3     Supplemental Operating and Financial Data for the
Quarter Ended 6/30/10 		       

Geographic Diversification

                       
  As of June 30, 2010  
  State     # of Centers     GLA     % of GLA  
  South Carolina     4     1,387,784     15 %
  Georgia     3     850,130     9 %
  New York     1     729,475     8 %
  Pennsylvania     2     628,078     7 %
  Texas     2     619,729     7 %
  Delaware     1     568,868     6 %
  Alabama     1     557,235     6 %
  Michigan     2     436,751     5 %
  Tennessee     1     419,038     5 %
  Missouri     1     302,992     4 %
  Utah     1     298,379     3 %
  Connecticut     1     291,051     3 %
  Louisiana     1     282,403     3 %
  Iowa     1     277,230     3 %
  Oregon     1     270,204     3 %
  Illinois     1     250,439     3 %
  New Hampshire     1     245,698     3 %
  Florida     1     198,950     2 %
  North Carolina     2     186,413     2 %
  California     1     171,300     2 %
  Maine     2     84,313     1 %
  Total (1)     31     9,056,460     100 %
                       

 

           
  (1)     Excludes one 265,061 square foot center in Wisconsin Dells, WI, of which Tanger owns a 50% interest through a joint venture arrangement. Also, excludes one 653,780 square foot shopping center and one 29,253 square foot warehouse in Deer Park, NY of which Tanger owns a 33.3% interest through a joint venture arrangement.  

 

 

 

 

 

 

 

 

 

                 
  4     Supplemental Operating and Financial Data for the
Quarter Ended 6/30/10 		       

Property Summary - Occupancy at End of Each Period Shown
Wholly-owned properties

                                         
  Location     Total GLA
6/30/10		     %
Occupied
6/30/10		     %
Occupied
3/31/10		     %
Occupied
12/31/09		     %
Occupied
9/30/09		     %
Occupied
6/30/09		  
  Riverhead, NY     729,475     99 %   99 %   99 %   99 %   98 %
  Rehoboth, DE     568,868     98 %   99 %   99 %   99 %   99 %
  Foley, AL     557,235     97 %   92 %   91 %   91 %   91 %
  San Marcos, TX     441,929     97 %   97 %   100 %   100 %   99 %
  Myrtle Beach Hwy 501, SC     426,417     92 %   88 %   90 %   90 %   88 %
  Sevierville, TN     419,038     99 %   99 %   100 %   100 %   100 %
  Myrtle Beach Hwy 17, SC     402,466     100 %   99 %   100 %   100 %   99 %
  Washington, PA     372,926     95 %   94 %   88 %   88 %   86 %
  Commerce II, GA     370,512     97 %   96 %   97 %   96 %   95 %
  Charleston, SC     352,315     97 %   92 %   98 %   96 %   95 %
  Howell, MI     324,631     95 %   94 %   95 %   95 %   94 %
  Branson, MO     302,992     100 %   97 %   100 %   100 %   100 %
  Park City, UT     298,379     99 %   100 %   100 %   100 %   99 %
  Locust Grove, GA     293,868     99 %   97 %   100 %   100 %   97 %
  Westbrook, CT     291,051     95 %   97 %   95 %   97 %   91 %
  Gonzales, LA     282,403     99 %   98 %   100 %   99 %   100 %
  Williamsburg, IA     277,230     89 %   91 %   95 %   94 %   96 %
  Lincoln City, OR     270,204     99 %   98 %   99 %   100 %   99 %
  Lancaster, PA     255,152     98 %   97 %   100 %   99 %   97 %
  Tuscola, IL     250,439     83 %   82 %   82 %   81 %   79 %
  Tilton, NH     245,698     100 %   100 %   100 %   99 %   97 %
  Hilton Head, SC (3)     206,586     100 %   100 %   89 %   90 %   85 %
  Fort Myers, FL     198,950     88 %   90 %   92 %   89 %   92 %
  Commerce I, GA     185,750     46 %   44 %   61 %   58 %   63 %
  Terrell, TX     177,800     94 %   93 %   98 %   94 %   94 %
  Barstow, CA     171,300     100 %   100 %   100 %   100 %   100 %
  West Branch, MI     112,120     98 %   98 %   96 %   96 %   96 %
  Blowing Rock, NC     104,235     100 %   100 %   100 %   100 %   100 %
  Nags Head, NC     82,178     100 %   94 %   97 %   97 %   97 %
  Kittery I, ME     59,694     100 %   100 %   100 %   100 %   100 %
  Kittery II, ME     24,619     100 %   100 %   100 %   100 %   100 %
  Total     9,056,460     97 %(1)   95 %   96 %(2)    96 %(2)    95 %(2) 
                                         

Unconsolidated joint ventures

                                         
  Deer Park, NY (4)     683,033     84 %   81 %   81 %   80 %   80 %
  Wisconsin Dells, WI     265,061     99 %   97 %   97 %   98 %   98 %
                                         
           
  (1)     Excludes the occupancy rate at our Commerce I, Georgia center which was held for sale as of June 30, 2010.  
  (2)     Excludes the occupancy rate at our Washington, Pennsylvania center which opened during the third quarter of 2008 and had not yet stabilized.  
  (3)     Occupancy rates in 2009 are based on a total of 368,626 square feet and include both the Hilton Head I and Hilton Head II properties. The Hilton Head I property was demolished in 2010 and is currently under redevelopment, and accordingly, 162,040 square feet is excluded from the 2010 amounts.  
  (4)     Includes a 29,253 square foot warehouse adjacent to the shopping center.  

   

                 
  5     Supplemental Operating and Financial Data for the
Quarter Ended 6/30/10 		       

Portfolio Occupancy at the End of Each Period (1)

 

d26561baroccupancychart.jpg

           
  (1)     Excludes one 265,061 square foot center in Wisconsin Dells, WI, of which Tanger owns a 50% interest through a joint venture arrangement. Also, excludes one 653,780 square foot shopping center and one 29,253 square foot warehouse in Deer Park, NY of which Tanger owns a 33.3% interest through a joint venture arrangement.  
  (2)     Excludes the occupancy rate at our Commerce I, Georgia center which was held for sale as of June 30, 2010.  
  (3)     Excludes the occupancy rate at our Myrtle Beach Hwy 17, South Carolina center which was owned by an unconsolidated joint venture during those periods. On January 5, 2009, we acquired the remaining 50% interest in the joint venture and the property became wholly-owned.  
  (4)     Excludes the occupancy rate at our Washington, Pennsylvania center which opened during the third quarter of 2008 and had not yet stabilized.  

 

 

 

                 
  6     Supplemental Operating and Financial Data for the
Quarter Ended 6/30/10 		       

Major Tenants (1)

                       
  Ten Largest Tenants As of June 30, 2010  
  Tenant     # of
Stores		    
GLA		     % of
Total GLA		  
  The Gap, Inc.     72     761,530     8.4 %
  Phillips-Van Heusen     112     571,896     6.3 %
  Dress Barn, Inc.     56     336,620     3.7 %
  Nike     26     310,437     3.4 %
  VF Outlet, Inc.     30     296,657     3.3 %
  Adidas     33     281,374     3.1 %
  Liz Claiborne     30     257,339     2.8 %
  Carter's     48     233,243     2.6 %
  Polo Ralph Lauren     23     197,669     2.2 %
  Jones Retail Corporation     67     186,325     2.1 %
  Total of All Listed Above     497     3,433,090     37.9 %
                       

 

           
  (1)     Excludes one 265,061 square foot center in Wisconsin Dells, WI, of which Tanger owns a 50% interest through a joint venture arrangement. Also, excludes one 653,780 square foot shopping center and one 29,253 square foot warehouse in Deer Park, NY of which Tanger owns a 33.3% interest through a joint venture arrangement.  

 

 

 

 

 

 

 

                 
  7     Supplemental Operating and Financial Data for the
Quarter Ended 6/30/10 		       

Lease Expirations as of June 30, 2010

 

Percentage of Total Gross Leasable Area (1)

 

d26561percentagetotalgross.jpg

 

Percentage of Total Annualized Base Rent (1)

 

d26561percentagetotalannualized.jpg

           
  (1)     Excludes one 265,061 square foot center in Wisconsin Dells, WI, of which Tanger owns a 50% interest through a joint venture arrangement. Also, excludes one 653,780 square foot shopping center and one 29,253 square foot warehouse in Deer Park, NY of which Tanger owns a 33.3% interest through a joint venture arrangement.  

 

 

 

 

                 
  8     Supplemental Operating and Financial Data for the
Quarter Ended 6/30/10 		       

Leasing Activity (1)

                                         
        03/31/10     06/30/10     09/30/10     12/31/10     Year to
Date		     Prior
Year to
Date		  
  Re-tenanted Space:                                      
  Number of leases     60     26                 86     73  
  Gross leasable area     227,468     95,734                 323,202     223,613  
  New initial base rent per square foot   $ 21.25   $ 22.31               $ 21.56   $ 28.02  
  Prior expiring base rent per square foot   $ 19.07   $ 19.71               $ 19.26   $ 20.29  
  Percent increase     11.4 %   13.2 %               12.0 %   38.1 %
                                         
  New straight line base rent per square foot   $ 22.92   $ 23.45               $ 23.08   $ 29.47  
  Prior straight line base rent per square foot   $ 18.71   $ 19.21               $ 18.86   $ 20.03  
  Percent increase     22.5 %   22.0 %               22.4 %   47.1 %
                                         
  Renewed Space:                                      
  Number of leases     150     58                 208     212  
  Gross leasable area     646,422     252,301                 898,723     1,032,301  
  New initial base rent per square foot   $ 19.80   $ 18.62               $ 19.47   $ 17.85  
  Prior expiring base rent per square foot   $ 18.86   $ 17.80               $ 18.57   $ 16.43  
  Percent increase     4.9 %   4.6 %               4.8 %   8.6 %
                                         
  New straight line base rent per square foot   $ 20.37   $ 18.97               $ 19.98   $ 18.19  
  Prior straight line base rent per square foot   $ 18.72   $ 17.47               $ 18.37   $ 16.30  
  Percent increase     8.8 %   8.6 %               8.7 %   11.6 %
                                         
  Total Re-tenanted and Renewed Space:                                      
  Number of leases     210     84                 294     285  
  Gross leasable area     873,890     348,035                 1,221,925     1,255,914  
  New initial base rent per square foot   $ 20.17   $ 19.63               $ 20.02   $ 19.66  
  Prior expiring base rent per square foot   $ 18.92   $ 18.33               $ 18.75   $ 17.12  
  Percent increase     6.6 %   7.1 %               6.8 %   14.9 %
                                         
  New straight line base rent per square foot   $ 21.04   $ 20.20               $ 20.80   $ 20.20  
  Prior straight line base rent per square foot   $ 18.72   $ 17.95               $ 18.50   $ 16.96  
  Percent increase     12.4 %   12.5 %               12.4 %   19.1 %

 

           
  (1)     Excludes one 265,061 square foot center in Wisconsin Dells, WI, of which Tanger owns a 50% interest through a joint venture arrangement. Also, excludes one 653,780 square foot shopping center and one 29,253 square foot warehouse in Deer Park, NY of which Tanger owns a 33.3% interest through a joint venture arrangement.  

 

 

 

                 
  9     Supplemental Operating and Financial Data for the
Quarter Ended 6/30/10 		       

Consolidated Balance Sheets (dollars in thousands)

                                   
        6/30/10     3/31/10     12/31/09     9/30/09     6/30/09  
  Assets                                
  Rental property                                
  Land   $ 141,575   $ 142,822   $ 143,933   $ 135,605   $ 135,708  
  Buildings     1,343,155     1,360,010     1,352,568     1,349,310     1,343,854  
  Construction in progress     39,883     19,557     11,369     ---     ---  
  Total rental property     1,524,613     1,522,389     1,507,870     1,484,915     1,479,562  
  Accumulated depreciation     (425,168 )   (432,276 )   (412,530 )   (396,508 )   (379,412 )
  Total rental property - net     1,099,445     1,090,113     1,095,340     1,088,407     1,100,150  
  Cash & cash equivalents     3,453     3,197     3,267     4,401     5,150  
  Rental property held for sale     1,921     ---     ---     ---     ---  
  Investments in unconsolidated joint ventures     7,570     8,151     9,054     9,569     9,808  
  Deferred charges - net     35,124     35,555     38,867     41,572     43,746  
  Other assets     31,627     31,889     32,333     32,646     31,771  
  Total assets   $ 1,179,140   $ 1,168,905   $ 1,178,861   $ 1,176,595   $ 1,190,625  
  Liabilities & equity                                
  Liabilities                                
  Debt                                
  Senior, unsecured notes, net of discount   $ 554,415   $ 256,412   $ 256,352   $ 256,293   $ 256,235  
  Unsecured term loan     ---     235,000     235,000     235,000     235,000  
  Mortgages payable, net of discount     ---     ---     35,559     35,246     34,938  
  Unsecured lines of credit     50,800     93,400     57,700     54,000     188,250  
  Total debt     605,215     584,812     584,611     580,539     714,423  
  Construction trade payables     30,829     22,381     14,194     7,957     6,327  
  Accounts payable & accruals     22,747     28,544     31,916     34,235     25,103  
  Other liabilities     17,286     25,657     27,077     28,864     32,152  
  Total liabilities     676,077     661,394     657,798     651,595     778,005  
  Equity                                
  Tanger Factory Outlet Centers, Inc. equity                                
  Preferred shares     75,000     75,000     75,000     75,000     75,000  
  Common shares     405     405     403     403     368  
  Paid in capital     599,270     597,968     596,074     595,240     482,532  
  Distributions in excess of net income     (229,298 )   (217,076 )   (202,997 )   (197,725 )   (186,202 )
  Accum. other comprehensive income (loss)     1,884     (5,169 )   (5,809 )   (6,824 )   (6,879 )
  Total Tanger Factory Outlet Centers, Inc. equity     447,261     451,128     462,671     466,094     364,819  
  Noncontrolling interest     55,802     56,383     58,392     58,906     47,801  
  Total equity     503,063     507,511     521,063     525,000     412,620  
  Total liabilities and equity   $ 1,179,140   $ 1,168,905   $ 1,178,861   $ 1,176,595   $ 1,190,625  
                                   

 

                 
  10     Supplemental Operating and Financial Data for the
Quarter Ended 6/30/10 		       

Consolidated Statements of Operations (dollars and shares in thousands)

                                               
        Three Months Ended     YTD  
        06/10     03/10     12/09     09/09     06/09     06/10     06/09  
  Revenues                                            
  Base rentals   $ 43,968   $ 43,497   $ 44,204   $ 43,948   $ 43,218   $ 87,465   $ 85,894  
  Percentage rentals     1,048     1,305     3,111     1,442     940     2,353     2,248  
  Expense reimbursements     18,429     19,519     21,989     19,020     18,321     37,948     37,491  
  Other income     1,850     1,721     1,992     5,638     1,921     3,571     3,618  
  Total revenues     65,295     66,042     71,296     70,048     64,400     131,337     129,251  
  Expenses                                            
  Property operating     21,758     22,349     23,850     21,218     20,660     44,107     42,270  
  General & administrative     5,963     5,466     5,066     5,467     5,817     11,429     11,752  
  Executive severance     ---     ---     ---     10,296     ---     ---     ---  
  Depreciation & amortization     17,109     26,474     20,187     20,164     19,422     43,583     39,588  
  Impairment charge     ---     735     ---     ---     ---     735     ---  
  Abandoned due diligence costs     365     ---     797     ---     ---     365     ---  
  Total expenses     45,195     55,024     49,900     57,145     45,899     100,219     93,610  
  Operating income     20,100     11,018     21,396     12,903     18,501     31,118     35,641  
  Interest expense     (7,951 )   (7,948 )   (8,217 )   (8,692 )   (9,564 )   (15,899 )   (20,774 )
  Gain (loss) on early extinguishment of debt     (563 )   ---     ---     ---     10,467     (563 )   10,467  
  Loss on termination of interest rate swaps     (6,142 )   ---     ---     ---     ---     (6,142 )   ---  
  Gain on fair value measurement of previously held interest in acquired joint venture     ---     ---     ---     ---     ---     ---     31,497  
  Income before equity in earnings (losses) of unconsolidated joint ventures     5,444     3,070     13,179     4,211     19,404     8,514     56,831  
  Equity in earnings (losses) of unconsolidated joint ventures     (51 )   (68 )   (166 )   68     (517 )   (119 )   (1,414 )
  Income from continuing operations     5,393     3,002     13,013     4,279     18,887     8,395     55,417  
  Discontinued operations     (1 )   1     63     85     (5,300 )   ---     (5,362 )
  Net income     5,392     3,003     13,076     4,364     13,587     8,395     55,055  
  Noncontrolling interest     (524 )   (210 )   (1,538 )   (407 )   (1,833 )   (734 )   (7,531 )
  Net income attributable to the Company     4,868     2,793     11,538     3,957     11,754     7,661     42,524  
  Less applicable preferred share dividends     (1,407 )   (1,406 )   (1,406 )   (1,406 )   (1,407 )   (2,813 )   (2,813 )
  Allocation to participating securities     (143 )   (169 )   (121 )   (207 )   (179 )   (312 )   (616 )
 

Net income available to common

shareholders

   $ 3,318   $ 1,218   $ 10,011   $ 2,344   $ 10,168   $ 4,536   $ 39,095  
  Basic earnings per common share:                                            
  Income from continuing operations   $ .08   $ .03   $ .25   $ .06   $ .43   $ .11   $ 1.33  
  Discontinued operations     ---     ---     ---     ---     (.13 )   ---     (.14 )
  Net income   $ .08   $ .03   $ .25   $ .06   $ .30   $ .11   $ 1.19  
  Diluted earnings per common share:                                            
  Income from continuing operations   $ .08   $ .03   $ .25   $ .06   $ .43   $ .11   $ 1.33  
  Discontinued operations     ---     ---     ---     ---     (.13 )   ---     (.14 )
  Net income   $ .08   $ .03   $ .25   $ .06   $ .30   $ .11   $ 1.19  
  Weighted average common shares:                                            
  Basic     40,103     40,030     39,958     38,063     34,249     40,067     32,767  
  Diluted     40,171     40,117     40,043     38,145     34,327     40,141     32,847  
                                               
                 
  11     Supplemental Operating and Financial Data for the
Quarter Ended 6/30/10 		       

FFO and FAD Analysis (dollars and shares in thousands)

                                               
        Three Months Ended     YTD  
        06/10     03/10     12/09     09/09     06/09     06/10     06/09  
  Funds from operations:                                            
  Net income   $ 5,392   $ 3,003   $ 13,076   $ 4,364   $ 13,587   $ 8,395   $ 50,055  
  Adjusted for -                                            
  Depreciation and amortization uniquely significant to real estate - wholly-owned discontinued operations     34     53     52     49     230     87     461  
  Depreciation and amortization uniquely significant to real estate - wholly-owned     16,984     26,359     20,060     20,039     19,300     43,343     39,347  
  Depreciation and amortization uniquely significant to real estate - joint ventures     1,280     1,265     1,231     1,239     1,223     2,545     2,389  
  (Gain) on fair value measurement of previously held interest in acquired joint venture     --     --     --     --     --     --     (31,497 )
  Funds from operations     23,690     30,680     34,419     25,691     34,340     54,370     60,755  
  Preferred share dividends     (1,407 )   (1,406 )   (1,406 )   (1,406 )   (1,407 )   (2,813 )   (2,813 )
  Allocation to participating securities     (177 )   (268 )   (225 )   (302 )   (452 )   (442 )   (758 )
  Funds from operations available to common shareholders   $ 22,106   $ 29,006   $ 32,788   $ 23,983   $ 32,481   $ 51,115   $ 57,184  
  Funds from operations per share   $ .48   $ .63   $ .71   $ .54   $ .80   $ 1.11   $ 1.47  
  Funds available for distribution to common shareholders:                                            
  Funds from operations   $ 22,106   $ 29,006   $ 32,788   $ 23,983   $ 32,481   $ 51,115   $ 57,184  
                                               
  Adjusted for -                                            
  Corporate depreciation excluded above     125     115     127     125     122     240     241  
  Amortization of finance costs     315     342     341     348     357     657     822  
  Amortization of net debt (discount)
premium		     4     214     (79 )   (21 )   (76 )   218     994  
  Gain (loss) on early extinguishment of debt     563     --     --     --     (10,467 )   563     (10,467 )
  Loss on termination of interest rate swaps     6,142     --     --     --     --     6,142     --  
  Impairment charge     --     735     --     --     5,200     735     5,200  
  Amortization of share-based compensation     1,363     1,140     829     8,080     1,592     2,503     2,889  
  Straight line rent adjustment     (669 )   (734 )   (287 )   (421 )   (757 )   (1,403 )   (1,534 )
  Market rent adjustment     (216 )   (165 )   (226 )   (223 )   (121 )   (381 )   (43 )
  2nd generation tenant allowances     (1,328 )   (1,721 )   (1,652 )   (807 )   (2,834 )   (3,049 )   (5,205 )
  Capital improvements     (1,309 )   (1,600 )   (1,011 )   (2,008 )   (3,107 )   (2,909 )   (5,868 )
  Funds available for distribution   $ 27,096   $ 27,332   $ 30,830   $ 29,056   $ 22,390   $ 54,431   $ 44,213  
  Funds available for distribution per share   $ .59   $ .59   $ .67   $ .66   $ .55   $ 1.18   $ 1.14  
  Dividends paid per share   $ .3875   $ .3825   $ .3825   $ .3825   $ .3825   $ .7700   $ .7625  
  FFO payout ratio     81 %   61 %   54 %   71 %   48 %   69 %   52 %
  FAD payout ratio     66 %   65 %   57 %   58 %   70 %   65 %   67 %
  Diluted weighted average common shs.     46,238     46,184     46,110     44,212     40,394     46,208     38,914  
                                               
                 
  12     Supplemental Operating and Financial Data for the
Quarter Ended 6/30/10 		       

Unconsolidated Joint Venture Information— All
Summary Balance Sheets (dollars in thousands)

                                         
        06/30/10     03/31/10     12/31/09     09/30/09     06/30/09     Tanger's
Share as of
06/30/10		  
  Assets                                      
  Investment properties at cost - net   $ 289,587   $ 292,105   $ 294,857   $ 294,220   $ 291,166   $ 101,696  
  Cash and cash equivalents     9,020     6,937     8,070     8,151     5,880     3,624  
  Deferred charges - net     4,799     5,197     5,450     5,438     5,685     1,680  
  Other assets     6,697     5,878     5,610     5,302     4,549     2,333  
  Total assets   $ 310,103   $ 310,117   $ 313,987   $ 313,111   $ 307,280   $ 109,333  
                                         
  Liabilities & Owners' Equity                                      
  Mortgage payable   $ 294,034   $ 292,468   $ 292,468   $ 292,468   $ 288,169   $ 102,136  
  Construction trade payables     878     1,845     3,647     2,523     1,651     300  
  Accounts payable & other liabilities     3,991     3,568     3,826     2,841     1,825     1,472  
  Total liabilities     298,903     297,881     299,941     297,832     291,645     103,908  
  Owners' equity     11,200     12,236     14,046     15,279     15,635     5,425  
  Total liabilities & owners' equity   $ 310,103   $ 310,117   $ 313,987   $ 313,111   $ 307,280   $ 109,333  
                                         

 

Summary Statements of Operations (dollars in thousands)

                                               
        Three Months Ended     YTD  
        06/10     03/10     12/09     09/09     06/09     06/10     06/09  
  Revenues   $ 9,261   $ 9,274   $ 9,374   $ 9,152   $ 8,431   $ 18,535   $ 16,955  
  Expenses                                            
  Property operating     4,200     4,210     4,682     4,103     3,611     8,410     7,858  
  General & administrative     72     287     444     111     117     359     306  
  Depreciation & amortization     3,546     3,497     3,460     3,427     3,358     7,043     6,532  
  Total expenses     7,818     7,994     8,586     7,641     7,086     15,812     14,696  
  Operating income     1,443     1,280     788     1,511     1,345     2,723     2,259  
  Interest expense     1,717     1,674     1,550     1,553     3,079     3,391     6,810  
  Net loss   $ (274 ) $ (394 ) $ (762 ) $ (42 ) $ (1,734 ) $ (668 ) $ (4,551 )
  Tanger's share of:                                            
  Total revenues less property
operating and general &
administrative expenses ("NOI")		   $ 1,842   $ 1,791   $ 1,603   $ 1,845   $ 1,751   $ 3,633   $ 3,285  
  Net income (loss)   $ (51 ) $ (68 ) $ (166 ) $ 68   $ (517 ) $ (119 ) $ (1,414 )
  Depreciation (real estate related)   $ 1,280   $ 1,265   $ 1,231   $ 1,239   $ 1,223   $ 2,545   $ 2,389  
                                               

 

 

                 
  13     Supplemental Operating and Financial Data for the
Quarter Ended 6/30/10 		       

Unconsolidated Joint Venture Information - Wisconsin Dells
Summary Balance Sheets (dollars in thousands)

                                         
        06/30/10     03/31/10     12/31/09     09/30/09     06/30/09     Tanger's Share as of 06/30/10  
  Assets                                      
  Investment properties at cost - net   $ 31,004   $ 31,541   $ 32,108   $ 32,598   $ 33,165   $ 15,502  
  Cash and cash equivalents     3,702     4,050     4,549     3,846     3,312     1,851  
  Deferred charges - net     477     515     529     390     444     239  
  Other assets     602     626     514     522     527     301  
  Total assets   $ 35,785   $ 36,732   $ 37,700   $ 37,356   $ 37,448   $ 17,893  
                                         
  Liabilities & Owners' Equity                                      
  Mortgage payable   $ 24,750   $ 25,250   $ 25,250   $ 25,250   $ 25,250   $ 12,375  
  Construction trade payables     46     58     116     39     199     23  
  Accounts payable & other liabilities     844     906     876     696     787     422  
  Total liabilities     25,640     26,214     26,242     25,985     26,236     12,820  
  Owners' equity     10,145     10,518     11,458     11,371     11,212     5,073  
  Total liabilities & owners' equity   $ 35,785   $ 36,732   $ 37,700   $ 37,356   $ 37,448   $ 17,893  
                                         

 

Summary Statements of Operations (dollars in thousands)

                                               
        Three Months Ended     YTD  
        06/10     03/10     12/09     09/09     06/09     06/10     06/09  
  Revenues   $ 1,715   $ 1,923   $ 1,757   $ 1,780   $ 1,785   $ 3,638   $ 3,556  
  Expenses                                            
  Property operating     643     716     629     590     661     1,359     1,346  
  General & administrative     3     9     1     4     13     12     16  
  Depreciation & amortization     615     613     612     615     613     1,228     1,226  
  Total expenses     1,261     1,338     1,242     1,209     1,287     2,599     2,588  
  Operating income     454     585     515     571     498     1,039     968  
  Interest expense     227     225     128     112     118     452     252  
  Net income   $ 227   $ 360   $ 387   $ 459   $ 380   $ 587   $ 716  
  Tanger's share of:                                            
  Total revenues less property operating and general & administrative expenses ("NOI")   $ 534   $ 599   $ 563   $ 593   $ 556   $ 1,133   $ 1,097  
  Net income   $ 124   $ 188   $ 203   $ 238   $ 201   $ 312   $ 378  
  Depreciation (real estate related)   $ 297   $ 298   $ 296   $ 299   $ 296   $ 595   $ 593  
                                               

 

 

                 
  14     Supplemental Operating and Financial Data for the
Quarter Ended 6/30/10 		       

Unconsolidated Joint Venture Information - Deer Park
Summary Balance Sheets (dollars in thousands)

                                         
        06/30/10     03/31/10     12/31/09     09/30/09     06/30/09     Tanger's Share as of 06/30/10  
  Assets                                      
  Investment properties at cost - net   $ 258,583   $ 260,413   $ 262,601   $ 261,474   $ 257,868   $ 86,194  
  Cash and cash equivalents     5,318     2,865     3,498     4,273     2,526     1,773  
  Deferred charges - net     4,322     4,682     4,921     5,048     5,241     1,441  
  Other assets     6,095     5,252     5,096     4,780     4,022     2,032  
  Total assets   $ 274,318   $ 273,212   $ 276,116   $ 275,575   $ 269,657   $ 91,440  
                                         
  Liabilities & Owners' Equity                                      
  Mortgage payable   $ 269,284   $ 267,218   $ 267,218   $ 267,218   $ 262,919   $ 89,761  
  Construction trade payables     832     1,785     3,531     2,484     1,452     277  
  Accounts payable & other liabilities     3,147     2,662     2,950     2,136     1,034     1,050  
  Total liabilities     273,263     271,665     273,699     271,838     265,405     91,088  
  Owners' equity     1,055     1,547     2,417     3,737     4,252     352  
  Total liabilities & owners' equity   $ 274,318   $ 273,212   $ 276,116   $ 275,575   $ 269,657   $ 91,440  
                                         

 

Summary Statements of Operations (dollars in thousands)

                                               
        Three Months Ended     YTD  
        06/10     03/10     12/09     09/09     06/09     06/10     06/09  
  Revenues   $ 7,546   $ 7,351   $ 7,617   $ 7,372   $ 6,646   $ 14,897   $ 13,399  
  Expenses                                            
  Property operating     3,557     3,494     4,053     3,513     2,950     7,051     6,512  
  General & administrative     69     278     443     107     104     347     290  
  Depreciation & amortization     2,931     2,884     2,868     2,807     2,727     5,815     5,266  
  Total expenses     6,557     6,656     7,364     6,427     5,781     13,213     12,068  
  Operating income     989     695     253     945     865     1,684     1,331  
  Interest expense     1,490     1,449     1,422     1,441     2,961     2,939     6,558  
  Net loss   $ (501 ) $ (754 ) $ (1,169 ) $ (496 ) $ (2,096 ) $ (1,255 ) $ (5,227 )
  Tanger's share of:                                            
  Total revenues less property operating and general & administrative expenses ("NOI")   $ 1,308   $ 1,192   $ 1,040   $ 1,252   $ 1,196   $ 2,500   $ 2,198  
  Net loss   $ (172 ) $ (258 ) $ (370 ) $ (169 ) $ (718 ) $ (430 ) $ (1,783 )
  Depreciation (real estate related)   $ 983   $ 967   $ 936   $ 941   $ 927   $ 1,950   $ 1,796  
                                               
                 
  15     Supplemental Operating and Financial Data for the
Quarter Ended 6/30/10 		       

Debt Outstanding Summary (dollars in thousands)

                       
  As of June 30, 2010  
        Principal
Balance		     Interest
Rate		     Maturity
Date		  
  Unsecured debt:                    
  Unsecured credit facilities (1)   $ 50,800     Libor + 0.60%     06/30/11  
  2015 Senior unsecured notes     250,000     6.15%     11/15/15  
  2026 Senior unsecured exchangeable notes (2)     7,210     3.75%     8/18/11  
  2020 Senior unsecured notes     300,000     6.125%     6/01/20  
  Net debt discounts     (2,795 )            
  Total consolidated debt   $ 605,215              
  Tanger's share of unconsolidated JV debt:                    
  Wisconsin Dells (3)     12,375     Libor + 3.00%     12/18/12  
  Deer Park (4)     89,761     Libor + 1.375 - 3.50%     5/17/11  
  Total Tanger's share of unconsolidated JV debt   $ 102,136              
                       

 

           
  (1)     The Company has five lines of credit with a borrowing capacity totaling $325.0 million, of which $285.0 million expires on June 30, 2011 and $40.0 million expires on August 30, 2011.  
  (2)     On January 1, 2009, we retrospectively adopted new guidance related to the accounting for convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement). This new guidance required us to bifurcate the notes into debt and equity components based on the fair value of the notes independent of the conversion feature as of the date of issuance in August 2006. As a result of this adoption, the bonds were recorded with a debt discount based on a market interest rate of 6.11%. At June 30, 2010, the unamortized discount on the remaining $7.2 million in exchangeable notes totaled $183,000. Our exchangeable notes issued during 2006 mature in 2026. They are displayed in the above table with a 2011 maturity date as this is the first date that the noteholders can require us to repurchase the notes without the occurrence of specified events.  
  (3)     In December 2009, we closed on the refinancing of the Tanger Wisconsin Dells mortgage loan. The new loan has a term of three years with an interest rate of LIBOR plus 300 basis points.  
  (4)     In May 2007, the joint venture entered into a four-year, interest-only construction loan facility with a one-year maturity extension option. The facility includes a senior loan, with an interest rate of LIBOR plus 137.5 basis points, and a mezzanine loan, with an interest rate of LIBOR plus 350 basis points. As of June 30, 2010, the outstanding principle balances of the senior and mezzanine loans were $252.0 million and $15.0 million, respectively, and $17.0 million was available for funding of additional construction draw requests under the senior loan facility. In February 2009, the joint venture entered into an interest rate cap agreement on a nominal amount of $240.0 million which became effective June 1, 2009. The derivative contract puts a cap of 4% on the LIBOR index and expires on April 1, 2011. In June 2008, the joint venture entered into an interest-only mortgage loan agreement with an interest rate of LIBOR plus 185 basis points and a maturity of May 17, 2011. As of June 30, 2010, the outstanding principle balance under this mortgage was $2.3 million.  

 

 

                 
  16     Supplemental Operating and Financial Data for the
Quarter Ended 6/30/10 		       

Future Scheduled Principal Payments (dollars in thousands)

                       
  As of June 30, 2010  
  Year     Tanger
Consolidated
Payments		     Tanger's Share
of Unconsolidated
JV Payments		     Total
Scheduled
Payments		  
  2010   $ ---   $ ---   $ ---  
  2011 (1)     58,010     89,761     147,771  
  2012     ---     12,375     12,375  
  2013     ---     ---     --  
  2014     ---     ---     --  
  2015     250,000     ---     250,000  
  2016     ---     ---     ---  
  2017     ---     ---     ---  
  2018     ---     ---     ---  
  2019 & thereafter     300,000     ---     300,000  
      $ 608,010   $ 102,136   $ 710,146  
  Net Discount on Debt     (2,795 )   ---     (2,795 )
      $ 605,215   $ 102,136   $ 707,351  
                       

 

Senior Unsecured Notes Financial Covenants (2)

                       
  As of June 30, 2010  
        Required     Actual     Compliance  
  Total Consolidated Debt to Adjusted Total Assets     <60 %   37 %   Yes  
  Total Secured Debt to Adjusted Total Assets     <40 %   0 %   Yes  
  Total Unencumbered Assets to Unsecured Debt     >135 %   271 %   Yes  
  Consolidated Income Available for Debt Service to Annual Debt Service Charge     >1.5     4.9     Yes  
                       
           
  (1)     Included in this amount is $7.2 million which represents our exchangeable, senior unsecured notes issued in August 2006. On and after August 18, 2011, holders may exchange their notes for cash in an amount equal to the lesser of the exchange value and the aggregate principal amount of the notes to be exchanged, and, at our option, Company common shares, cash or a combination thereof for any excess. Note holders may exchange their notes prior to August 18, 2011 only upon the occurrence of specified events. In addition, on August 18, 2011, August 15, 2016 or August 15, 2021, note holders may require us to repurchase the notes for an amount equal to the principal amount of the notes plus any accrued and unpaid interest thereon. The notes are shown with a 2011 maturity as this is the first date that the noteholders can require us to repurchase the notes without the occurrence of specified events.  
  (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.  

 

 

 

 

 

                 
  17     Supplemental Operating and Financial Data for the
Quarter Ended 6/30/10 		       

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) 856-6021
Fax: (336) 297-0931
e-mail: tangermail@tangeroutlet.com
Mail: Tanger Factory Outlet Centers, Inc.
        3200 Northline Avenue
        Suite 360
        Greensboro, NC 27408

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                 
  18     Supplemental Operating and Financial Data for the
Quarter Ended 6/30/10