QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
North Carolina | (Tanger Factory Outlet Centers, Inc.) | 56-1815473 |
North Carolina | (Tanger Properties Limited Partnership) | 56-1822494 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Shares, $0.01 par value | SKT | New York Stock Exchange |
Tanger Factory Outlet Centers, Inc. | Yes | ☒ | No | ☐ |
Tanger Properties Limited Partnership | Yes | ☒ | No | ☐ |
Tanger Factory Outlet Centers, Inc. | Yes | ☒ | No | ☐ |
Tanger Properties Limited Partnership | Yes | ☒ | No | ☐ |
Tanger Factory Outlet Centers, Inc. | ||||
Large Accelerated Filer | ☒ | Accelerated Filer | ☐ | |
Non-accelerated Filer | ☐ | Smaller Reporting Company | ☐ | |
Emerging | ☐ |
Tanger Properties Limited Partnership | ||||
Large Accelerated Filer | ☐ | Accelerated Filer | ☐ | |
Non-accelerated Filer | ☒ | �� | Smaller | ☐ |
Emerging | ☐ |
Tanger Factory Outlet Centers, Inc. | |
Tanger Properties Limited Partnership |
Tanger Factory Outlet Centers, Inc. | Yes | ☐ | No | ☒ |
Tanger Properties Limited Partnership | Yes | ☐ | No | ☒ |
Page Number | |
Part I. Financial Information | |
Item 1. | |
FINANCIAL STATEMENTS OF TANGER FACTORY OUTLET CENTERS, INC. (Unaudited) | |
Consolidated Balance Sheets - as of March 31, | |
Consolidated Statements of Operations - for the three months ended March 31, | |
Consolidated Statements of Comprehensive Income - for the three months ended March 31, | |
Consolidated Statements of | |
Consolidated Statements of Cash Flows - for the three months ended March 31, | |
FINANCIAL STATEMENTS OF TANGER PROPERTIES LIMITED PARTNERSHIP (Unaudited) | |
Consolidated Balance Sheets - as of March 31, | |
Consolidated Statements of Operations - for the three months ended March 31, | |
Consolidated Statements of Comprehensive Income - for the three months ended March 31, | |
Consolidated Statements of Equity - for the three months ended March 31, | |
Consolidated Statements of Cash Flows - for the three months ended March 31, | |
Condensed Notes to Consolidated Financial Statements of Tanger Factory Outlet Centers, Inc. and Tanger Properties Limited Partnership | |
Item 2. | |
Item 3. Quantitative and Qualitative Disclosures about Market Risk | |
Item 4. Controls and Procedures (Tanger Factory Outlet Centers, Inc. and Tanger Properties Limited Partnership) | |
Part II. Other Information | |
Item 1. Legal Proceedings | |
Item 1A. Risk Factors | |
Item 6. Exhibits | |
Signatures |
March 31, 2019 | December 31, 2018 | March 31, 2020 | December 31, 2019 | |||||||||||||
Assets | ||||||||||||||||
Rental property: | ||||||||||||||||
Land | $ | 267,910 | $ | 278,428 | $ | 266,537 | $ | 266,537 | ||||||||
Buildings, improvements and fixtures | 2,639,764 | 2,764,649 | 2,564,224 | 2,630,357 | ||||||||||||
Construction in progress | — | 3,102 | ||||||||||||||
2,907,674 | 3,046,179 | 2,830,761 | 2,896,894 | |||||||||||||
Accumulated depreciation | (941,193 | ) | (981,305 | ) | (1,007,922 | ) | (1,009,951 | ) | ||||||||
Total rental property, net | 1,966,481 | 2,064,874 | 1,822,839 | 1,886,943 | ||||||||||||
Cash and cash equivalents | 1,616 | 9,083 | 600,454 | 16,672 | ||||||||||||
Investments in unconsolidated joint ventures | 97,654 | 95,969 | 86,478 | 94,691 | ||||||||||||
Deferred lease costs and other intangibles, net | 106,170 | 116,874 | 97,560 | 96,712 | ||||||||||||
Operating lease right-of-use assets | 87,679 | — | 83,764 | 86,575 | ||||||||||||
Prepaids and other assets | 94,224 | 98,102 | 100,674 | 103,618 | ||||||||||||
Total assets | $ | 2,353,824 | $ | 2,384,902 | $ | 2,791,769 | $ | 2,285,211 | ||||||||
Liabilities and Equity | ||||||||||||||||
Liabilities | ||||||||||||||||
Debt: | ||||||||||||||||
Senior, unsecured notes, net | $ | 1,137,145 | $ | 1,136,663 | $ | 1,139,093 | $ | 1,138,603 | ||||||||
Unsecured term loan, net | 346,950 | 346,799 | 347,531 | 347,367 | ||||||||||||
Mortgages payable, net | 86,572 | 87,471 | 82,856 | 83,803 | ||||||||||||
Unsecured lines of credit, net | 12,117 | 141,985 | 598,074 | — | ||||||||||||
Total debt | 1,582,784 | 1,712,918 | 2,167,554 | 1,569,773 | ||||||||||||
Accounts payable and accrued expenses | 87,536 | 82,676 | 90,659 | 79,562 | ||||||||||||
Operating lease liabilities | 92,354 | — | 91,017 | 91,237 | ||||||||||||
Other liabilities | 87,707 | 83,773 | 94,881 | 88,530 | ||||||||||||
Total liabilities | 1,850,381 | 1,879,367 | 2,444,111 | 1,829,102 | ||||||||||||
Commitments and contingencies | ||||||||||||||||
Equity | ||||||||||||||||
Tanger Factory Outlet Centers, Inc.: | ||||||||||||||||
Common shares, $.01 par value, 300,000,000 shares authorized, 94,102,666 and 93,941,783 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively | 941 | 939 | ||||||||||||||
Common shares, $.01 par value, 300,000,000 shares authorized, 93,076,701 and 92,892,260 shares issued and outstanding at March 31, 2020 and December 31 2019, respectively | 931 | 929 | ||||||||||||||
Paid in capital | 780,936 | 778,845 | 778,062 | 775,035 | ||||||||||||
Accumulated distributions in excess of net income | (276,491 | ) | (272,454 | ) | (410,532 | ) | (317,263 | ) | ||||||||
Accumulated other comprehensive loss | (27,153 | ) | (27,151 | ) | (38,228 | ) | (25,495 | ) | ||||||||
Equity attributable to Tanger Factory Outlet Centers, Inc. | 478,233 | 480,179 | 330,233 | 433,206 | ||||||||||||
Equity attributable to noncontrolling interests: | ||||||||||||||||
Noncontrolling interests in Operating Partnership | 25,210 | 25,356 | 17,425 | 22,903 | ||||||||||||
Noncontrolling interests in other consolidated partnerships | — | — | — | — | ||||||||||||
Total equity | 503,443 | 505,535 | 347,658 | 456,109 | ||||||||||||
Total liabilities and equity | $ | 2,353,824 | $ | 2,384,902 | $ | 2,791,769 | $ | 2,285,211 |
Three months ended March 31, | Three months ended March 31, | |||||||||||||||
2019 | 2018 | 2020 | 2019 | |||||||||||||
Revenues: | ||||||||||||||||
Rental revenues | $ | 119,954 | $ | 120,656 | $ | 108,558 | $ | 119,954 | ||||||||
Management, leasing and other services | 1,342 | 1,199 | 1,443 | 1,342 | ||||||||||||
Other revenues | 1,859 | 1,680 | 1,632 | 1,859 | ||||||||||||
Total revenues | 123,155 | 123,535 | 111,633 | 123,155 | ||||||||||||
Expenses: | ||||||||||||||||
Property operating | 42,377 | 42,218 | 38,627 | 42,377 | ||||||||||||
General and administrative | 12,145 | 11,112 | 12,584 | 12,145 | ||||||||||||
Impairment charge | 45,675 | — | ||||||||||||||
Depreciation and amortization | 31,760 | 33,123 | 29,417 | 31,760 | ||||||||||||
Total expenses | 86,282 | 86,453 | 126,303 | 86,282 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (16,307 | ) | (15,800 | ) | (15,196 | ) | (16,307 | ) | ||||||||
Gain on sale of assets | 43,422 | — | — | 43,422 | ||||||||||||
Other income | 224 | 209 | 220 | 224 | ||||||||||||
Total other income (expense) | 27,339 | (15,591 | ) | (14,976 | ) | 27,339 | ||||||||||
Income before equity in earnings of unconsolidated joint ventures | 64,212 | 21,491 | ||||||||||||||
Income (loss) before equity in earnings of unconsolidated joint ventures | (29,646 | ) | 64,212 | |||||||||||||
Equity in earnings of unconsolidated joint ventures | 1,629 | 2,194 | 1,527 | 1,629 | ||||||||||||
Net income | 65,841 | 23,685 | ||||||||||||||
Net income (loss) | (28,119 | ) | 65,841 | |||||||||||||
Noncontrolling interests in Operating Partnership | (3,315 | ) | (1,217 | ) | 1,427 | (3,315 | ) | |||||||||
Noncontrolling interests in other consolidated partnerships | (195 | ) | 370 | (190 | ) | (195 | ) | |||||||||
Net income attributable to Tanger Factory Outlet Centers, Inc. | $ | 62,331 | $ | 22,838 | ||||||||||||
Net income (loss) attributable to Tanger Factory Outlet Centers, Inc. | $ | (26,882 | ) | $ | 62,331 | |||||||||||
Basic earnings per common share: | ||||||||||||||||
Net income | $ | 0.66 | $ | 0.24 | ||||||||||||
Net income (loss) | $ | (0.30 | ) | $ | 0.66 | |||||||||||
Diluted earnings per common share: | ||||||||||||||||
Net income | $ | 0.66 | $ | 0.24 | ||||||||||||
Net income (loss) | $ | (0.30 | ) | $ | 0.66 | |||||||||||
Three months ended March 31, | ||||||||
2019 | 2018 | |||||||
Net income | $ | 65,841 | $ | 23,685 | ||||
Other comprehensive income (loss): | ||||||||
Foreign currency translation adjustments | 1,949 | (3,095 | ) | |||||
Change in fair value of cash flow hedges | (1,952 | ) | 2,739 | |||||
Other comprehensive loss | (3 | ) | (356 | ) | ||||
Comprehensive income | 65,838 | 23,329 | ||||||
Comprehensive income attributable to noncontrolling interests | (3,509 | ) | (829 | ) | ||||
Comprehensive income attributable to Tanger Factory Outlet Centers, Inc. | $ | 62,329 | $ | 22,500 |
Three months ended March 31, | ||||||||
2020 | 2019 | |||||||
Net income (loss) | $ | (28,119 | ) | $ | 65,841 | |||
Other comprehensive income (loss): | ||||||||
Foreign currency translation adjustments | (7,733 | ) | 1,949 | |||||
Change in fair value of cash flow hedges | (5,676 | ) | (1,952 | ) | ||||
Other comprehensive income (loss) | (13,409 | ) | (3 | ) | ||||
Comprehensive income (loss) | (41,528 | ) | 65,838 | |||||
Comprehensive (income) loss attributable to noncontrolling interests | 1,913 | (3,509 | ) | |||||
Comprehensive income (loss) attributable to Tanger Factory Outlet Centers, Inc. | $ | (39,615 | ) | $ | 62,329 |
Common shares | Paid in capital | Accumulated distributions in excess of earnings | Accumulated other comprehensive loss | Equity attributable to Tanger Factory Outlet Centers, Inc. | Noncontrolling interests in Operating Partnership | Noncontrolling interests in other consolidated partnerships | Total equity | ||||||||||||||||||
Balance, December 31, 2017 | $ | 946 | $ | 784,782 | $ | (184,865 | ) | $ | (19,285 | ) | $ | 581,578 | $ | 30,724 | $ | — | $ | 612,302 | |||||||
Net income | — | — | 22,838 | — | 22,838 | 1,217 | (370 | ) | 23,685 | ||||||||||||||||
Other comprehensive loss | — | — | — | (338 | ) | (338 | ) | (18 | ) | — | (356 | ) | |||||||||||||
Compensation under Incentive Award Plan | — | 3,656 | — | — | 3,656 | — | — | 3,656 | |||||||||||||||||
Grant of 355,184 restricted common share awards, net of forfeitures | 3 | (3 | ) | — | — | — | — | — | — | ||||||||||||||||
Repurchase of 443,700 common shares, including transaction costs | (4 | ) | (9,994 | ) | — | — | (9,998 | ) | — | — | (9,998 | ) | |||||||||||||
Withholding of 89,437 common shares for employee income taxes | (1 | ) | (2,067 | ) | — | — | (2,068 | ) | — | — | (2,068 | ) | |||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | — | 445 | 445 | |||||||||||||||||
Adjustment for noncontrolling interests in Operating Partnership | — | 379 | — | — | 379 | (379 | ) | — | — | ||||||||||||||||
Common dividends ($0.3425 per share) | — | — | (32,389 | ) | — | (32,389 | ) | — | — | (32,389 | ) | ||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | (1,711 | ) | (75 | ) | (1,786 | ) | ||||||||||||||
Balance, March 31, 2018 | $ | 944 | $ | 776,753 | $ | (194,416 | ) | $ | (19,623 | ) | $ | 563,658 | $ | 29,833 | $ | — | $ | 593,491 | |||||||
The accompanying notes are an integral part of these consolidated financial statements. | |||||||||||||||||||||||||
TANGER FACTORY OUTLET CENTERS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In thousands, except share and per share data, unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares | Paid in capital | Accumulated distributions in excess of earnings | Accumulated other comprehensive loss | Equity attributable to Tanger Factory Outlet Centers, Inc. | Noncontrolling interests in Operating Partnership | Noncontrolling interests in other consolidated partnerships | Total equity | Common shares | Paid in capital | Accumulated distributions in excess of earnings | Accumulated other comprehensive loss | Equity attributable to Tanger Factory Outlet Centers, Inc. | Noncontrolling interests in Operating Partnership | Noncontrolling interests in other consolidated partnerships | Total equity | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2018 | $ | 939 | $ | 778,845 | $ | (272,454 | ) | $ | (27,151 | ) | $ | 480,179 | $ | 25,356 | $ | — | $ | 505,535 | $ | 939 | $ | 778,845 | $ | (272,454 | ) | $ | (27,151 | ) | $ | 480,179 | $ | 25,356 | $ | — | $ | 505,535 | ||||||||||||||
Net income | — | — | 62,331 | — | 62,331 | 3,315 | 195 | 65,841 | — | — | 62,331 | — | 62,331 | 3,315 | 195 | 65,841 | ||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | (2 | ) | (2 | ) | (1 | ) | — | (3 | ) | — | — | — | (2 | ) | (2 | ) | (1 | ) | — | (3 | ) | ||||||||||||||||||||||||||
Compensation under Incentive Award Plan | — | 3,910 | — | — | 3,910 | — | — | 3,910 | — | 3,910 | — | — | 3,910 | — | — | 3,910 | ||||||||||||||||||||||||||||||||||
Grant of 242,167 restricted common share awards, net of forfeitures | 3 | (3 | ) | — | — | — | — | — | — | 3 | (3 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Withholding of 81,284 common shares for employee income taxes | (1 | ) | (1,780 | ) | — | — | (1,781 | ) | — | — | (1,781 | ) | (1 | ) | (1,780 | ) | — | — | (1,781 | ) | — | — | (1,781 | ) | ||||||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | — | 18 | 18 | — | — | — | — | — | — | 18 | 18 | ||||||||||||||||||||||||||||||||||
Adjustment for noncontrolling interests in Operating Partnership | — | (36 | ) | — | — | (36 | ) | 36 | — | — | — | (36 | ) | — | — | (36 | ) | 36 | — | — | ||||||||||||||||||||||||||||||
Common dividends ($0.705 per share) (1) | — | — | (66,368 | ) | — | (66,368 | ) | — | — | (66,368 | ) | — | — | (66,368 | ) | — | (66,368 | ) | — | — | (66,368 | ) | ||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | (3,496 | ) | (213 | ) | (3,709 | ) | — | — | — | — | — | (3,496 | ) | (213 | ) | (3,709 | ) | ||||||||||||||||||||||||||||
Balance, March 31, 2019 | $ | 941 | $ | 780,936 | $ | (276,491 | ) | $ | (27,153 | ) | $ | 478,233 | $ | 25,210 | $ | — | $ | 503,443 | $ | 941 | $ | 780,936 | $ | (276,491 | ) | $ | (27,153 | ) | $ | 478,233 | $ | 25,210 | $ | — | $ | 503,443 | ||||||||||||||
(1) | Includes both a $0.35 cash dividend per common share declared and paid during the first quarter of 2019 and a cash dividend declared in February 2019 payable in May 2019 of $0.355 per common share. |
TANGER FACTORY OUTLET CENTERS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (In thousands, except share and per share data, unaudited) | |||||||||||||||||||||||||
Common shares | Paid in capital | Accumulated distributions in excess of earnings | Accumulated other comprehensive loss | Equity attributable to Tanger Factory Outlet Centers, Inc. | Noncontrolling interests in Operating Partnership | Noncontrolling interests in other consolidated partnerships | Total equity | ||||||||||||||||||
Balance, December 31, 2019 | $ | 929 | $ | 775,035 | $ | (317,263 | ) | $ | (25,495 | ) | $ | 433,206 | $ | 22,903 | $ | — | $ | 456,109 | |||||||
Net income (loss) | — | — | (26,882 | ) | — | (26,882 | ) | (1,427 | ) | 190 | (28,119 | ) | |||||||||||||
Other comprehensive loss | — | — | — | (12,733 | ) | (12,733 | ) | (676 | ) | — | (13,409 | ) | |||||||||||||
Compensation under Incentive Award Plan | — | 3,889 | — | — | 3,889 | — | — | 3,889 | |||||||||||||||||
Grant of 241,038 restricted common share awards, net of forfeitures | 2 | (2 | ) | — | — | — | — | — | — | ||||||||||||||||
Withholding of 56,597 common shares for employee income taxes | — | (736 | ) | — | — | (736 | ) | — | — | (736 | ) | ||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | — | 72 | 72 | |||||||||||||||||
Adjustment for noncontrolling interests in Operating Partnership | — | (124 | ) | — | — | (124 | ) | 124 | — | — | |||||||||||||||
Common dividends ($0.7125 per share) (1) | — | — | (66,387 | ) | — | (66,387 | ) | — | — | (66,387 | ) | ||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | (3,499 | ) | (262 | ) | (3,761 | ) | ||||||||||||||
Balance, March 31, 2020 | $ | 931 | $ | 778,062 | $ | (410,532 | ) | $ | (38,228 | ) | $ | 330,233 | $ | 17,425 | $ | — | $ | 347,658 |
(1) | Includes both a $0.355 cash dividend per common share declared and paid during the first quarter of 2020 and a cash dividend declared in January 2020 payable in May 2020 of $0.3575 per common share. |
Three months ended March 31, | Three months ended March 31, | |||||||||||||||
2019 | 2018 | 2020 | 2019 | |||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||
Net income | $ | 65,841 | $ | 23,685 | ||||||||||||
Net income (loss) | $ | (28,119 | ) | $ | 65,841 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 31,760 | 33,123 | 29,417 | 31,760 | ||||||||||||
Impairment charge | 45,675 | — | ||||||||||||||
Amortization of deferred financing costs | 747 | 783 | 757 | 747 | ||||||||||||
Gain on sale of assets | (43,422 | ) | — | — | (43,422 | ) | ||||||||||
Equity in earnings of unconsolidated joint ventures | (1,629 | ) | (2,194 | ) | (1,527 | ) | (1,629 | ) | ||||||||
Equity-based compensation expense | 3,818 | 3,392 | 3,789 | 3,818 | ||||||||||||
Amortization of debt (premiums) and discounts, net | 109 | 101 | 118 | 109 | ||||||||||||
Amortization (accretion) of market rent rate adjustments, net | 480 | 562 | 362 | 480 | ||||||||||||
Straight-line rent adjustments | (1,970 | ) | (1,948 | ) | (1,872 | ) | (1,970 | ) | ||||||||
Distributions of cumulative earnings from unconsolidated joint ventures | 1,455 | 2,198 | 1,517 | 1,455 | ||||||||||||
Changes in other assets and liabilities: | ||||||||||||||||
Other assets | 873 | 1,714 | 2,210 | 873 | ||||||||||||
Accounts payable and accrued expenses | (24,894 | ) | (11,412 | ) | (25,045 | ) | (24,894 | ) | ||||||||
Net cash provided by operating activities | 33,168 | 50,004 | 27,282 | 33,168 | ||||||||||||
INVESTING ACTIVITIES | ||||||||||||||||
Additions to rental property | (9,906 | ) | (19,714 | ) | (10,551 | ) | (9,906 | ) | ||||||||
Additions to investments in unconsolidated joint ventures | (779 | ) | (514 | ) | (261 | ) | (779 | ) | ||||||||
Net proceeds from sale of assets | 128,248 | — | — | 128,248 | ||||||||||||
Additions to non-real estate assets | (174 | ) | (303 | ) | (677 | ) | (174 | ) | ||||||||
Distributions in excess of cumulative earnings from unconsolidated joint ventures | 8,157 | 4,494 | 3,488 | 8,157 | ||||||||||||
Additions to deferred lease costs | (1,209 | ) | (1,014 | ) | (1,220 | ) | (1,209 | ) | ||||||||
Other investing activities | 2,936 | 2,969 | 2,844 | 2,936 | ||||||||||||
Net cash provided by (used) in investing activities | 127,273 | (14,082 | ) | (6,377 | ) | 127,273 | ||||||||||
FINANCING ACTIVITIES | ||||||||||||||||
Cash dividends paid | (32,910 | ) | (32,389 | ) | (33,034 | ) | (32,910 | ) | ||||||||
Distributions to noncontrolling interests in Operating Partnership | (1,735 | ) | (1,711 | ) | (1,744 | ) | (1,735 | ) | ||||||||
Proceeds from revolving credit facility | 135,200 | 149,200 | 634,030 | 135,200 | ||||||||||||
Repayments of revolving credit facility | (265,300 | ) | (129,700 | ) | (34,200 | ) | (265,300 | ) | ||||||||
Repayments of notes, mortgages and loans | (825 | ) | (9,379 | ) | (873 | ) | (825 | ) | ||||||||
Repurchase of common shares, including transaction costs | — | (9,998 | ) | |||||||||||||
Employee income taxes paid related to shares withheld upon vesting of equity awards | (1,781 | ) | (2,068 | ) | (736 | ) | (1,781 | ) | ||||||||
Additions to deferred financing costs | (65 | ) | (2,606 | ) | (65 | ) | (65 | ) | ||||||||
Proceeds from other financing activities | 18 | 445 | 72 | 18 | ||||||||||||
Payment for other financing activities | (500 | ) | (362 | ) | (549 | ) | (500 | ) | ||||||||
Net cash used in financing activities | (167,898 | ) | (38,568 | ) | ||||||||||||
Net cash provided by (used) in financing activities | 562,901 | (167,898 | ) | |||||||||||||
Effect of foreign currency rate changes on cash and cash equivalents | (10 | ) | (28 | ) | (24 | ) | (10 | ) | ||||||||
Net decrease in cash and cash equivalents | (7,467 | ) | (2,674 | ) | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 583,782 | (7,467 | ) | |||||||||||||
Cash and cash equivalents, beginning of period | 9,083 | 6,101 | 16,672 | 9,083 | ||||||||||||
Cash and cash equivalents, end of period | $ | 1,616 | $ | 3,427 | $ | 600,454 | $ | 1,616 |
March 31, 2019 | December 31, 2018 | March 31, 2020 | December 31, 2019 | |||||||||||||
Assets | ||||||||||||||||
Rental property: | ||||||||||||||||
Land | $ | 267,910 | $ | 278,428 | $ | 266,537 | $ | 266,537 | ||||||||
Buildings, improvements and fixtures | 2,639,764 | 2,764,649 | 2,564,224 | 2,630,357 | ||||||||||||
Construction in progress | — | 3,102 | ||||||||||||||
2,907,674 | 3,046,179 | 2,830,761 | 2,896,894 | |||||||||||||
Accumulated depreciation | (941,193 | ) | (981,305 | ) | (1,007,922 | ) | (1,009,951 | ) | ||||||||
Total rental property, net | 1,966,481 | 2,064,874 | 1,822,839 | 1,886,943 | ||||||||||||
Cash and cash equivalents | 1,570 | 8,991 | 600,359 | 16,519 | ||||||||||||
Investments in unconsolidated joint ventures | 97,654 | 95,969 | 86,478 | 94,691 | ||||||||||||
Deferred lease costs and other intangibles, net | 106,170 | 116,874 | 97,560 | 96,712 | ||||||||||||
Operating lease right-of-use assets | 87,679 | — | 83,764 | 86,575 | ||||||||||||
Prepaids and other assets | 93,826 | 97,832 | 100,088 | 103,374 | ||||||||||||
Total assets | $ | 2,353,380 | $ | 2,384,540 | $ | 2,791,088 | $ | 2,284,814 | ||||||||
Liabilities and Equity | ||||||||||||||||
Liabilities | ||||||||||||||||
Debt: | ||||||||||||||||
Senior, unsecured notes, net | $ | 1,137,145 | $ | 1,136,663 | $ | 1,139,093 | $ | 1,138,603 | ||||||||
Unsecured term loan, net | 346,950 | 346,799 | 347,531 | 347,367 | ||||||||||||
Mortgages payable, net | 86,572 | 87,471 | 82,856 | 83,803 | ||||||||||||
Unsecured lines of credit, net | 12,117 | 141,985 | 598,074 | — | ||||||||||||
Total debt | 1,582,784 | 1,712,918 | 2,167,554 | 1,569,773 | ||||||||||||
Accounts payable and accrued expenses | 87,092 | 82,314 | 89,978 | 79,165 | ||||||||||||
Operating lease liabilities | 92,354 | — | 91,017 | 91,237 | ||||||||||||
Other liabilities | 87,707 | 83,773 | 94,881 | 88,530 | ||||||||||||
Total liabilities | 1,849,937 | 1,879,005 | 2,443,430 | 1,828,705 | ||||||||||||
Commitments and contingencies | ||||||||||||||||
Equity | ||||||||||||||||
Partners' Equity: | ||||||||||||||||
General partner, 1,000,000 units outstanding at March 31, 2019 and December 31, 2018 | 5,227 | 4,914 | ||||||||||||||
Limited partners, 4,960,684 and 4,960,684 Class A common units, and 93,102,666 and 92,941,783 Class B common units outstanding at March 31, 2019 and December 31, 2018, respectively | 526,850 | 529,252 | ||||||||||||||
Partners’ Equity: | ||||||||||||||||
General partner, 1,000,000 units outstanding at March 31, 2020 and December 31, 2019 | 3,433 | 4,435 | ||||||||||||||
Limited partners, 4,911,173 and 4,911,173 Class A common units, and 92,076,701 and 91,892,260 Class B common units outstanding at March 31, 2020 and December 31, 2019, respectively | 384,522 | 478,562 | ||||||||||||||
Accumulated other comprehensive loss | (28,634 | ) | (28,631 | ) | (40,297 | ) | (26,888 | ) | ||||||||
Total partners' equity | 503,443 | 505,535 | ||||||||||||||
Total partners’ equity | 347,658 | 456,109 | ||||||||||||||
Noncontrolling interests in consolidated partnerships | — | — | — | — | ||||||||||||
Total equity | 503,443 | 505,535 | 347,658 | 456,109 | ||||||||||||
Total liabilities and equity | $ | 2,353,380 | $ | 2,384,540 | $ | 2,791,088 | $ | 2,284,814 |
Three months ended March 31, | Three months ended March 31, | |||||||||||||||
2019 | 2018 | 2020 | 2019 | |||||||||||||
Revenues: | ||||||||||||||||
Rental revenues | $ | 119,954 | $ | 120,656 | $ | 108,558 | $ | 119,954 | ||||||||
Management, leasing and other services | 1,342 | 1,199 | 1,443 | 1,342 | ||||||||||||
Other revenues | 1,859 | 1,680 | 1,632 | 1,859 | ||||||||||||
Total revenues | 123,155 | 123,535 | 111,633 | 123,155 | ||||||||||||
Expenses: | ||||||||||||||||
Property operating | 42,377 | 42,218 | 38,627 | 42,377 | ||||||||||||
General and administrative | 12,145 | 11,112 | 12,584 | 12,145 | ||||||||||||
Impairment charge | 45,675 | — | ||||||||||||||
Depreciation and amortization | 31,760 | 33,123 | 29,417 | 31,760 | ||||||||||||
Total expenses | 86,282 | 86,453 | 126,303 | 86,282 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (16,307 | ) | (15,800 | ) | (15,196 | ) | (16,307 | ) | ||||||||
Gain on sale of assets | 43,422 | — | — | 43,422 | ||||||||||||
Other income | 224 | 209 | 220 | 224 | ||||||||||||
Total other income (expense) | 27,339 | (15,591 | ) | (14,976 | ) | 27,339 | ||||||||||
Income before equity in earnings of unconsolidated joint ventures | 64,212 | 21,491 | ||||||||||||||
Income (loss) before equity in earnings of unconsolidated joint ventures | (29,646 | ) | 64,212 | |||||||||||||
Equity in earnings of unconsolidated joint ventures | 1,629 | 2,194 | 1,527 | 1,629 | ||||||||||||
Net income | 65,841 | 23,685 | ||||||||||||||
Net income (loss) | (28,119 | ) | 65,841 | |||||||||||||
Noncontrolling interests in consolidated partnerships | (195 | ) | 370 | (190 | ) | (195 | ) | |||||||||
Net income available to partners | 65,646 | 24,055 | ||||||||||||||
Net income available to limited partners | 64,983 | 23,814 | ||||||||||||||
Net income available to general partner | $ | 663 | $ | 241 | ||||||||||||
Net income (loss) available to partners | (28,309 | ) | 65,646 | |||||||||||||
Net income (loss) available to limited partners | (28,020 | ) | 64,983 | |||||||||||||
Net income (loss) available to general partner | $ | (289 | ) | $ | 663 | |||||||||||
Basic earnings per common unit: | ||||||||||||||||
Net income | $ | 0.66 | $ | 0.24 | ||||||||||||
Net income (loss) | $ | (0.30 | ) | $ | 0.66 | |||||||||||
Diluted earnings per common unit: | ||||||||||||||||
Net income | $ | 0.66 | $ | 0.24 | ||||||||||||
Net income (loss) | $ | (0.30 | ) | $ | 0.66 | |||||||||||
Three months ended March 31, | ||||||||
2019 | 2018 | |||||||
Net income | $ | 65,841 | $ | 23,685 | ||||
Other comprehensive income (loss): | ||||||||
Foreign currency translation adjustments | 1,949 | (3,095 | ) | |||||
Changes in fair value of cash flow hedges | (1,952 | ) | 2,739 | |||||
Other comprehensive loss | (3 | ) | (356 | ) | ||||
Comprehensive income | 65,838 | 23,329 | ||||||
Comprehensive income (loss) attributable to noncontrolling interests in consolidated partnerships | (195 | ) | 370 | |||||
Comprehensive income attributable to the Operating Partnership | $ | 65,643 | $ | 23,699 |
Three months ended March 31, | ||||||||
2020 | 2019 | |||||||
Net income (loss) | $ | (28,119 | ) | $ | 65,841 | |||
Other comprehensive income (loss): | ||||||||
Foreign currency translation adjustments | (7,733 | ) | 1,949 | |||||
Changes in fair value of cash flow hedges | (5,676 | ) | (1,952 | ) | ||||
Other comprehensive income (loss) | (13,409 | ) | (3 | ) | ||||
Comprehensive income (loss) | (41,528 | ) | 65,838 | |||||
Comprehensive (income) loss attributable to noncontrolling interests in consolidated partnerships | (190 | ) | (195 | ) | ||||
Comprehensive income (loss) attributable to the Operating Partnership | $ | (41,718 | ) | $ | 65,643 |
General partner | Limited partners | Accumulated other comprehensive loss | Total partners' equity | Noncontrolling interests in consolidated partnerships | Total equity | |||||||||||||||||||||||||||||||||
Balance, December 31, 2017 | $ | 5,844 | $ | 626,803 | $ | (20,345 | ) | $ | 612,302 | $ | — | $ | 612,302 | |||||||||||||||||||||||||
Net income | 241 | 23,814 | — | 24,055 | (370 | ) | 23,685 | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | (356 | ) | (356 | ) | — | (356 | ) | |||||||||||||||||||||||||||||
Compensation under Incentive Award Plan | — | 3,656 | — | 3,656 | — | 3,656 | ||||||||||||||||||||||||||||||||
Grant of 355,184 restricted common share awards by the Company, net of forfeitures | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Repurchase of 443,700 units, including transaction costs | — | (9,998 | ) | — | (9,998 | ) | — | (9,998 | ) | |||||||||||||||||||||||||||||
Withholding of 89,437 common units for employee income taxes | — | (2,068 | ) | — | (2,068 | ) | — | (2,068 | ) | |||||||||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | 445 | 445 | ||||||||||||||||||||||||||||||||
Common distributions ($0.3425 per common unit) | (342 | ) | (33,758 | ) | — | (34,100 | ) | — | (34,100 | ) | ||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | (75 | ) | (75 | ) | ||||||||||||||||||||||||||||||
Balance, March 31, 2018 | $ | 5,743 | $ | 608,449 | $ | (20,701 | ) | $ | 593,491 | $ | — | $ | 593,491 | |||||||||||||||||||||||||
General partner | Limited partners | Accumulated other comprehensive loss | Total partners' equity | Noncontrolling interests in consolidated partnerships | Total equity | General partner | Limited partners | Accumulated other comprehensive loss | Total partners’ equity | Noncontrolling interests in consolidated partnerships | Total equity | |||||||||||||||||||||||||||
Balance, December 31, 2018 | $ | 4,914 | $ | 529,252 | $ | (28,631 | ) | $ | 505,535 | $ | — | $ | 505,535 | $ | 4,914 | $ | 529,252 | $ | (28,631 | ) | $ | 505,535 | $ | — | $ | 505,535 | ||||||||||||
Net income | 663 | 64,983 | — | 65,646 | 195 | 65,841 | 663 | 64,983 | — | 65,646 | 195 | 65,841 | ||||||||||||||||||||||||||
Other comprehensive loss | — | — | (3 | ) | (3 | ) | — | (3 | ) | — | — | (3 | ) | (3 | ) | — | (3 | ) | ||||||||||||||||||||
Compensation under Incentive Award Plan | — | 3,910 | — | 3,910 | — | 3,910 | — | 3,910 | — | 3,910 | — | 3,910 | ||||||||||||||||||||||||||
Grant of 242,167 restricted common share awards by the Company | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Withholding of 81,284 common units for employee income taxes | — | (1,781 | ) | — | (1,781 | ) | — | (1,781 | ) | — | (1,781 | ) | — | (1,781 | ) | — | (1,781 | ) | ||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | 18 | 18 | — | — | — | — | 18 | 18 | ||||||||||||||||||||||||||
Common distributions ($0.705 per common unit) (1) | (350 | ) | (69,514 | ) | — | (69,864 | ) | — | (69,864 | ) | (350 | ) | (69,514 | ) | — | (69,864 | ) | — | (69,864 | ) | ||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | (213 | ) | (213 | ) | — | — | — | — | (213 | ) | (213 | ) | ||||||||||||||||||||||
Balance, March 31, 2019 | $ | 5,227 | $ | 526,850 | $ | (28,634 | ) | $ | 503,443 | $ | — | $ | 503,443 | $ | 5,227 | $ | 526,850 | $ | (28,634 | ) | $ | 503,443 | $ | — | $ | 503,443 | ||||||||||||
(1) | Includes both a $0.35 cash dividend per common unit declared and paid during the first quarter of 2019 and a cash dividend declared in February 2019 payable in May 2019 of |
TANGER PROPERTIES LIMITED PARTNERSHIP AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EQUITY (In thousands, except unit and per unit data, unaudited) | |||||||||||||||||||
General partner | Limited partners | Accumulated other comprehensive loss | Total partners’ equity | Noncontrolling interests in consolidated partnerships | Total equity | ||||||||||||||
Balance, December 31, 2019 | $ | 4,435 | $ | 478,562 | $ | (26,888 | ) | $ | 456,109 | $ | — | $ | 456,109 | ||||||
Net income (loss) | (289 | ) | (28,020 | ) | — | (28,309 | ) | 190 | (28,119 | ) | |||||||||
Other comprehensive loss | — | — | (13,409 | ) | (13,409 | ) | — | (13,409 | ) | ||||||||||
Compensation under Incentive Award Plan | — | 3,889 | — | 3,889 | — | 3,889 | |||||||||||||
Grant of 241,038 restricted common share awards by the Company | — | — | — | — | — | — | |||||||||||||
Withholding of 56,597 common units for employee income taxes | — | (736 | ) | — | (736 | ) | — | (736 | ) | ||||||||||
Contributions from noncontrolling interests | — | — | — | — | 72 | 72 | |||||||||||||
Common distributions ($0.7125 per common unit) (1) | (713 | ) | (69,173 | ) | — | (69,886 | ) | — | (69,886 | ) | |||||||||
Distributions to noncontrolling interests | — | — | — | — | (262 | ) | (262 | ) | |||||||||||
Balance, March 31, 2020 | $ | 3,433 | $ | 384,522 | $ | (40,297 | ) | $ | 347,658 | $ | — | $ | 347,658 |
(1) | Includes both a $0.355 cash dividend per common unit declared and paid during the first quarter of 2020 and a cash dividend declared in January 2020 payable in May 2020 of $0.3575 per common unit. |
Three months ended March 31, | Three months ended March 31, | |||||||||||||||
2019 | 2018 | 2020 | 2019 | |||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||
Net income | $ | 65,841 | $ | 23,685 | ||||||||||||
Net income (loss) | $ | (28,119 | ) | $ | 65,841 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 31,760 | 33,123 | 29,417 | 31,760 | ||||||||||||
Impairment charge | 45,675 | — | ||||||||||||||
Amortization of deferred financing costs | 747 | 783 | 757 | 747 | ||||||||||||
Gain on sale of assets | (43,422 | ) | — | — | (43,422 | ) | ||||||||||
Equity in earnings of unconsolidated joint ventures | (1,629 | ) | (2,194 | ) | (1,527 | ) | (1,629 | ) | ||||||||
Equity-based compensation expense | 3,818 | 3,392 | 3,789 | 3,818 | ||||||||||||
Amortization of debt (premiums) and discounts, net | 109 | 101 | 118 | 109 | ||||||||||||
Amortization (accretion) of market rent rate adjustments, net | 480 | 562 | 362 | 480 | ||||||||||||
Straight-line rent adjustments | (1,970 | ) | (1,948 | ) | (1,872 | ) | (1,970 | ) | ||||||||
Distributions of cumulative earnings from unconsolidated joint ventures | 1,455 | 2,198 | 1,517 | 1,455 | ||||||||||||
Changes in other assets and liabilities: | ||||||||||||||||
Other assets | 1,001 | 1,903 | 2,552 | 1,001 | ||||||||||||
Accounts payable and accrued expenses | (24,976 | ) | (11,639 | ) | (25,329 | ) | (24,976 | ) | ||||||||
Net cash provided by operating activities | 33,214 | 49,966 | 27,340 | 33,214 | ||||||||||||
INVESTING ACTIVITIES | ||||||||||||||||
Additions to rental property | (9,906 | ) | (19,714 | ) | (10,551 | ) | (9,906 | ) | ||||||||
Additions to investments in unconsolidated joint ventures | (779 | ) | (514 | ) | (261 | ) | (779 | ) | ||||||||
Net proceeds from sale of assets | 128,248 | — | — | 128,248 | ||||||||||||
Additions to non-real estate assets | (174 | ) | (303 | ) | (677 | ) | (174 | ) | ||||||||
Distributions in excess of cumulative earnings from unconsolidated joint ventures | 8,157 | 4,494 | 3,488 | 8,157 | ||||||||||||
Additions to deferred lease costs | (1,209 | ) | (1,014 | ) | (1,220 | ) | (1,209 | ) | ||||||||
Other investing activities | 2,936 | 2,969 | 2,844 | 2,936 | ||||||||||||
Net cash provided by (used) in investing activities | 127,273 | (14,082 | ) | (6,377 | ) | 127,273 | ||||||||||
FINANCING ACTIVITIES | ||||||||||||||||
Cash distributions paid | (34,645 | ) | (34,100 | ) | (34,778 | ) | (34,645 | ) | ||||||||
Proceeds from revolving credit facility | 135,200 | 149,200 | 634,030 | 135,200 | ||||||||||||
Repayments of revolving credit facility | (265,300 | ) | (129,700 | ) | (34,200 | ) | (265,300 | ) | ||||||||
Repayments of notes, mortgages and loans | (825 | ) | (9,379 | ) | (873 | ) | (825 | ) | ||||||||
Repurchase of units, including transaction costs | — | (9,998 | ) | |||||||||||||
Employee income taxes paid related to shares withheld upon vesting of equity awards | (1,781 | ) | (2,068 | ) | (736 | ) | (1,781 | ) | ||||||||
Additions to deferred financing costs | (65 | ) | (2,606 | ) | (65 | ) | (65 | ) | ||||||||
Proceeds from other financing activities | 18 | 445 | 72 | 18 | ||||||||||||
Payment for other financing activities | (500 | ) | (362 | ) | (549 | ) | (500 | ) | ||||||||
Net cash used in financing activities | (167,898 | ) | (38,568 | ) | ||||||||||||
Net cash provided by (used) in financing activities | 562,901 | (167,898 | ) | |||||||||||||
Effect of foreign currency on cash and cash equivalents | (10 | ) | (28 | ) | (24 | ) | (10 | ) | ||||||||
Net decrease in cash and cash equivalents | (7,421 | ) | (2,712 | ) | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 583,840 | (7,421 | ) | |||||||||||||
Cash and cash equivalents, beginning of period | 8,991 | 6,050 | 16,519 | 8,991 | ||||||||||||
Cash and cash equivalents, end of period | $ | 1,570 | $ | 3,338 | $ | 600,359 | $ | 1,570 |
Property | Location | Date Sold | Square Feet (in 000’s) | Net Sales Proceeds (in 000’s) | Gain on Sale (in 000’s) | ||||||||||
Nags Head, Ocean City, Park City, and Williamsburg | Nags Head, NC, Ocean City, MD, Park City, UT, and Williamsburg, IA | March 2019 | 878 | $ | 128,248 | $ | 43,422 |
Property | Location | Date Sold | Square Feet (in 000's) | Net Sales Proceeds (in 000's) | Gain on Sale (in 000's) | ||||||||||
Nags Head, Ocean City, Park City, and Williamsburg | Nags Head, NC, Ocean City, MD, Park City, UT, and Williamsburg, IA | March 2019 | 878 | $ | 128,248 | $ | 43,422 |
As of March 31, 2020 | ||||||||||||||||
Joint Venture | Outlet Center Location | Ownership % | Square Feet (in 000’s) | Carrying Value of Investment (in millions) | Total Joint Venture Debt, Net (in millions)(1) | |||||||||||
Investments included in investments in unconsolidated joint ventures: | ||||||||||||||||
RioCan Canada | Various | 50.0 | % | 765 | $ | 86.5 | $ | 8.3 | ||||||||
$ | 86.5 | |||||||||||||||
Investments included in other liabilities: | ||||||||||||||||
Columbus(2) | Columbus, OH | 50.0 | % | 355 | $ | (4.0 | ) | $ | 85.0 | |||||||
Charlotte(2) | Charlotte, NC | 50.0 | % | 399 | (13.5 | ) | 99.5 | |||||||||
National Harbor(2) | National Harbor, MD | 50.0 | % | 341 | (7.3 | ) | 94.5 | |||||||||
Galveston/Houston (2) | Texas City, TX | 50.0 | % | 353 | (19.8 | ) | 79.9 | |||||||||
$ | (44.6 | ) |
As of March 31, 2019 | ||||||||||||||||||||||||||||||||
As of December 31, 2019 | As of December 31, 2019 | |||||||||||||||||||||||||||||||
Joint Venture | Outlet Center Location | Ownership % | Square Feet (in 000's) | Carrying Value of Investment (in millions) | Total Joint Venture Debt, Net (in millions)(1) | Outlet Center Location | Ownership % | Square Feet (in 000’s) | Carrying Value of Investment (in millions) | Total Joint Venture Debt, Net (in millions)(1) | ||||||||||||||||||||||
Investments included in investments in unconsolidated joint ventures: | Investments included in investments in unconsolidated joint ventures: | Investments included in investments in unconsolidated joint ventures: | ||||||||||||||||||||||||||||||
RioCan Canada | Various | 50.0 | % | 924 | $ | 97.7 | $ | 9.5 | Various | 50.0 | % | 764 | $ | 94.7 | $ | 9.2 | ||||||||||||||||
$ | 97.7 | $ | 94.7 | |||||||||||||||||||||||||||||
Investments included in other liabilities: | Investments included in other liabilities: | Investments included in other liabilities: | ||||||||||||||||||||||||||||||
Columbus(2) | Columbus, OH | 50.0 | % | 355 | $ | (2.6 | ) | $ | 84.8 | Columbus, OH | 50.0 | % | 355 | $ | (3.5 | ) | $ | 85.0 | ||||||||||||||
Charlotte(2) | Charlotte, NC | 50.0 | % | 399 | (11.2 | ) | 99.5 | Charlotte, NC | 50.0 | % | 399 | (13.0 | ) | 99.5 | ||||||||||||||||||
National Harbor(2) | National Harbor, MD | 50.0 | % | 341 | (5.0 | ) | 94.4 | National Harbor, MD | 50.0 | % | 341 | (5.9 | ) | 94.4 | ||||||||||||||||||
Galveston/Houston (2) | Texas City, TX | 50.0 | % | 353 | (20.6 | ) | 79.7 | Texas City, TX | 50.0 | % | 353 | (19.7 | ) | 79.9 | ||||||||||||||||||
$ | (39.4 | ) | $ | (42.1 | ) |
As of December 31, 2018 | ||||||||||||||||
Joint Venture | Outlet Center Location | Ownership % | Square Feet (in 000's) | Carrying Value of Investment (in millions) | Total Joint Venture Debt, Net (in millions)(1) | |||||||||||
Investments included in investments in unconsolidated joint ventures: | ||||||||||||||||
RioCan Canada | Various | 50.0 | % | 924 | $ | 96.0 | $ | 9.3 | ||||||||
$ | 96.0 | |||||||||||||||
Investments included in other liabilities: | ||||||||||||||||
Columbus (2) | Columbus, OH | 50.0 | % | 355 | $ | (1.6 | ) | $ | 84.7 | |||||||
Charlotte(2) | Charlotte, NC | 50.0 | % | 398 | (10.8 | ) | 99.5 | |||||||||
National Harbor (2) | National Harbor, MD | 50.0 | % | 341 | (5.1 | ) | 94.5 | |||||||||
Galveston/Houston(2) | Texas City, TX | 50.0 | % | 353 | (15.0 | ) | 79.6 | |||||||||
$ | (32.5 | ) |
(1) | Net of debt origination costs and including premiums of |
(2) | The negative carrying value is due to distributions exceeding contributions and increases or decreases from our equity in earnings of the joint venture. |
Three months ended | ||||||||
March 31, | ||||||||
2020 | 2019 | |||||||
Fee: | ||||||||
Management and marketing | $ | 541 | $ | 566 | ||||
Leasing and other fees | 20 | 31 | ||||||
Expense reimbursements from unconsolidated joint ventures | 882 | 745 | ||||||
Total Fees | $ | 1,443 | $ | 1,342 |
Three months ended | ||||||||
March 31, | ||||||||
2019 | 2018 | |||||||
Fee: | ||||||||
Management and marketing | $ | 566 | $ | 567 | ||||
Leasing and other fees | 31 | 46 | ||||||
Expense reimbursements from unconsolidated joint ventures | 745 | 586 | ||||||
Total Fees | $ | 1,342 | $ | 1,199 |
Condensed Combined Balance Sheets - Unconsolidated Joint Ventures | March 31, 2020 | December 31, 2019 | ||||||
Assets | ||||||||
Land | $ | 87,015 | $ | 90,859 | ||||
Buildings, improvements and fixtures | 463,656 | 477,061 | ||||||
Construction in progress | 4,286 | 4,779 | ||||||
554,957 | 572,699 | |||||||
Accumulated depreciation | (133,948 | ) | (132,860 | ) | ||||
Total rental property, net | 421,009 | 439,839 | ||||||
Cash and cash equivalents | 12,653 | 19,750 | ||||||
Deferred lease costs and other intangibles, net | 6,331 | 6,772 | ||||||
Prepaids and other assets | 15,947 | 17,789 | ||||||
Total assets | $ | 455,940 | $ | 484,150 | ||||
Liabilities and Owners’ Equity | ||||||||
Mortgages payable, net | $ | 367,171 | $ | 368,032 | ||||
Accounts payable and other liabilities | 13,252 | 17,173 | ||||||
Total liabilities | 380,423 | 385,205 | ||||||
Owners’ equity | 75,517 | 98,945 | ||||||
Total liabilities and owners’ equity | $ | 455,940 | $ | 484,150 |
Condensed Combined Balance Sheets - Unconsolidated Joint Ventures | March 31, 2019 | December 31, 2018 | ||||||
Assets | ||||||||
Land | $ | 92,440 | $ | 91,443 | ||||
Buildings, improvements and fixtures | 474,981 | 469,834 | ||||||
Construction in progress | 3,455 | 2,841 | ||||||
570,876 | 564,118 | |||||||
Accumulated depreciation | (119,996 | ) | (113,713 | ) | ||||
Total rental property, net | 450,880 | 450,405 | ||||||
Cash and cash equivalents | 11,744 | 16,216 | ||||||
Deferred lease costs and other intangibles, net | 8,098 | 8,437 | ||||||
Prepaids and other assets | 15,963 | 25,648 | ||||||
Total assets | $ | 486,685 | $ | 500,706 | ||||
Liabilities and Owners' Equity | ||||||||
Mortgages payable, net | $ | 367,933 | $ | 367,865 | ||||
Accounts payable and other liabilities | 11,933 | 13,414 | ||||||
Total liabilities | 379,866 | 381,279 | ||||||
Owners' equity | 106,819 | 119,427 | ||||||
Total liabilities and owners' equity | $ | 486,685 | $ | 500,706 |
Three months ended | ||||||||
Condensed Combined Statements of Operations | March 31, | |||||||
- Unconsolidated Joint Ventures | 2020 | 2019 | ||||||
Revenues | $ | 22,036 | $ | 23,463 | ||||
Expenses: | ||||||||
Property operating | 9,129 | 9,790 | ||||||
General and administrative | 139 | 90 | ||||||
Depreciation and amortization | 5,906 | 6,110 | ||||||
Total expenses | 15,174 | 15,990 | ||||||
Other income (expense): | ||||||||
Interest expense | (3,735 | ) | (4,134 | ) | ||||
Other income | 56 | 66 | ||||||
Total other income (expense) | $ | (3,679 | ) | $ | (4,068 | ) | ||
Net income | $ | 3,183 | $ | 3,405 | ||||
The Company and Operating Partnership’s share of: | ||||||||
Net income | $ | 1,527 | $ | 1,629 | ||||
Depreciation and amortization (real estate related) | $ | 3,018 | $ | 3,130 |
Three months ended | ||||||||
Condensed Combined Statements of Operations | March 31, | |||||||
- Unconsolidated Joint Ventures | 2019 | 2018 | ||||||
Revenues | $ | 23,463 | $ | 23,997 | ||||
Expenses: | ||||||||
Property operating | 9,790 | 9,928 | ||||||
General and administrative | 90 | 198 | ||||||
Depreciation and amortization | 6,110 | 6,363 | ||||||
Total expenses | 15,990 | 16,489 | ||||||
Other income (expense): | ||||||||
Interest expense | (4,134 | ) | (3,077 | ) | ||||
Other income | 66 | 52 | ||||||
Total other income (expense) | $ | (4,068 | ) | $ | (3,025 | ) | ||
Net income | $ | 3,405 | $ | 4,483 | ||||
The Company and Operating Partnership's share of: | ||||||||
Net income | $ | 1,629 | $ | 2,194 | ||||
Depreciation and amortization (real estate related) | $ | 3,130 | $ | 3,229 |
As of | ||||||||
March 31, 2020 | December 31, 2019 | |||||||
Unsecured lines of credit | $ | 599,830 | $ | — | ||||
Unsecured term loan | $ | 350,000 | $ | 350,000 |
As of | ||||||||
March 31, 2019 | December 31, 2018 | |||||||
Unsecured lines of credit | $ | 15,000 | $ | 145,100 | ||||
Unsecured term loan | $ | 350,000 | $ | 350,000 |
As of | As of | As of | As of | |||||||||||||||||||||||||||||||||||||||||
March 31, 2019 | December 31, 2018 | March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
Stated Interest Rate(s) | Maturity Date | Principal | Book Value(1) | Principal | Book Value(1) | Stated Interest Rate(s) | Maturity Date | Principal | Book Value(1) | Principal | Book Value(1) | |||||||||||||||||||||||||||||||||
Senior, unsecured notes: | Senior, unsecured notes: | Senior, unsecured notes: | ||||||||||||||||||||||||||||||||||||||||||
Senior notes | 3.875 | % | December 2023 | $ | 250,000 | $ | 246,823 | $ | 250,000 | $ | 246,664 | 3.875 | % | December 2023 | $ | 250,000 | $ | 247,471 | $ | 250,000 | $ | 247,308 | ||||||||||||||||||||||
Senior notes | 3.750 | % | December 2024 | 250,000 | 247,855 | 250,000 | 247,765 | 3.750 | % | December 2024 | 250,000 | 248,218 | 250,000 | 248,127 | ||||||||||||||||||||||||||||||
Senior notes | 3.125 | % | September 2026 | 350,000 | 345,805 | 350,000 | 345,669 | 3.125 | % | September 2026 | 350,000 | 346,354 | 350,000 | 346,215 | ||||||||||||||||||||||||||||||
Senior notes | 3.875 | % | July 2027 | 300,000 | 296,662 | 300,000 | 296,565 | 3.875 | % | July 2027 | 300,000 | 297,050 | 300,000 | 296,953 | ||||||||||||||||||||||||||||||
Mortgages payable: | ||||||||||||||||||||||||||||||||||||||||||||
Atlantic City (2)(3) | 5.14%-7.65% | November 2021- December 2026 | 33,454 | 35,375 | 34,279 | 36,298 | 5.14 | % | - | 7.65% | November 2021- December 2026 | 30,037 | 31,559 | 30,909 | 32,531 | |||||||||||||||||||||||||||||
Southaven | LIBOR + 1.80% | April 2021 | 51,400 | 51,197 | 51,400 | 51,173 | LIBOR | + | 1.80% | April 2021 | 51,400 | 51,297 | 51,400 | 51,272 | ||||||||||||||||||||||||||||||
Unsecured term loan | LIBOR + 0.90% | April 2024 | 350,000 | 346,950 | 350,000 | 346,799 | LIBOR | + | 1.00% | April 2024 | 350,000 | 347,531 | 350,000 | 347,367 | ||||||||||||||||||||||||||||||
Unsecured lines of credit | LIBOR + 0.875% | October 2021 | 15,000 | 12,117 | 145,100 | 141,985 | LIBOR | + | 1.00% | October 2021 | 599,830 | 598,074 | — | — | ||||||||||||||||||||||||||||||
$ | 1,599,854 | $ | 1,582,784 | $ | 1,730,779 | $ | 1,712,918 | $ | 2,181,267 | $ | 2,167,554 | $ | 1,582,309 | $ | 1,569,773 |
(1) | Including premiums and net of debt discount and debt origination costs. |
(2) | The effective interest rate assigned during the purchase price allocation to the Atlantic City mortgages assumed during the acquisition in 2011 was 5.05%. |
(3) | Principal and interest due monthly with remaining principal due at maturity. |
Calendar Year | Amount | |||
For the remainder of 2020 | $ | 2,694 | ||
2021 | 657,023 | |||
2022 | 4,436 | |||
2023 | 254,768 | |||
2024 | 605,140 | |||
Thereafter | 657,206 | |||
Subtotal | 2,181,267 | |||
Net discount and debt origination costs | (13,713 | ) | ||
Total | $ | 2,167,554 |
Calendar Year | Amount | |||
For the remainder of 2019 | $ | 2,545 | ||
2020 | 3,566 | |||
2021 | 72,193 | |||
2022 | 4,436 | |||
2023 | 254,768 | |||
Thereafter | 1,262,346 | |||
Subtotal | 1,599,854 | |||
Net discount and debt origination costs | (17,070 | ) | ||
Total | $ | 1,582,784 |
Fair Value | ||||||||||||||||||||
Effective Date | Maturity Date | Notional Amount | Bank Pay Rate | Company Fixed Pay Rate | March 31, 2020 | December 31, 2019 | ||||||||||||||
Assets (Liabilities)(1): | ||||||||||||||||||||
Interest rate swaps: | ||||||||||||||||||||
April 13, 2016 | January 1, 2021 | 175,000 | 1 | month LIBOR | 1.03 | % | $ | (890 | ) | $ | 1,018 | |||||||||
March 1, 2018 | January 31, 2021 | 40,000 | 1 | month LIBOR | 2.47 | % | (708 | ) | (376 | ) | ||||||||||
August 14, 2018 | January 1, 2021 | 150,000 | 1 | month LIBOR | 2.20 | % | (2,103 | ) | (896 | ) | ||||||||||
July 1, 2019 | February 1, 2024 | 25,000 | 1 | month LIBOR | 1.75 | % | (1,301 | ) | (170 | ) | ||||||||||
January 1, 2021 | February 1, 2024 | 150,000 | 1 | month LIBOR | 0.60 | % | (1,098 | ) | — | |||||||||||
Total | $ | 540,000 | $ | (6,100 | ) | $ | (424 | ) |
Fair Value | |||||||||||||||||||
Effective Date | Maturity Date | Notional Amount | Bank Pay Rate | Company Fixed Pay Rate | March 31, 2019 | December 31, 2018 | |||||||||||||
Assets (Liabilities)(1): | |||||||||||||||||||
April 13, 2016 | January 1, 2021 | 175,000 | 1 month LIBOR | 1.03 | % | $ | 3,773 | $ | 4,948 | ||||||||||
March 1, 2018 | January 31, 2021 | 40,000 | 1 month LIBOR | 2.47 | % | (156 | ) | (6 | ) | ||||||||||
August 14, 2018 | January 1, 2021 | 150,000 | 1 month LIBOR | 2.20 | % | 180 | 807 | ||||||||||||
Total | $ | 365,000 | $ | 3,797 | $ | 5,749 |
(1) | Asset balances are recorded in prepaids and other assets on the consolidated balance sheets and liabilities are recorded in other liabilities on the consolidated balance sheets. |
Three months ended March 31, | ||||||||
2020 | 2019 | |||||||
Interest Rate Swaps: | ||||||||
Amount of gain (loss) recognized in other comprehensive income (loss) on derivative | $ | (5,676 | ) | $ | (1,952 | ) |
Three months ended March 31, | ||||||||
2019 | 2018 | |||||||
Interest Rate Swaps (Effective Portion): | ||||||||
Amount of gain (loss) recognized in OCI on derivative | $ | (1,952 | ) | $ | 2,739 |
Tier | Description | |
Level 1 | Observable inputs such as quoted prices in active markets | |
Level 2 | Inputs other than quoted prices in active markets that are either directly or indirectly observable | |
Level 3 | Unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions |
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets or Liabilities | Significant Observable Inputs | Significant Unobservable Inputs | Quoted Prices in Active Markets for Identical Assets or Liabilities | Significant Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||||||||||
Fair value as of March 31, 2019: | ||||||||||||||||||||||||||||||||
Asset: | ||||||||||||||||||||||||||||||||
Interest rate swaps (prepaids and other assets) | $ | 3,953 | $ | — | $ | 3,953 | $ | — | ||||||||||||||||||||||||
Fair value as of March 31, 2020: | ||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Short-term government securities (cash and cash equivalents) | $ | 597,140 | $ | 597,140 | $ | — | $ | — | ||||||||||||||||||||||||
Total assets | $ | 3,953 | $ | — | $ | 3,953 | $ | — | $ | 597,140 | $ | 597,140 | $ | — | $ | — | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Interest rate swaps (other liabilities) | $ | 156 | $ | — | $ | 156 | $ | — | $ | 6,100 | $ | — | $ | 6,100 | $ | — | ||||||||||||||||
Total liabilities | $ | 156 | $ | — | $ | 156 | $ | — | $ | 6,100 | $ | — | $ | 6,100 | $ | — |
Level 1 | Level 2 | Level 3 | ||||||||||||||
Quoted Prices in Active Markets for Identical Assets or Liabilities | Significant Observable Inputs | Significant Unobservable Inputs | ||||||||||||||
Total | ||||||||||||||||
Fair value as of December 31, 2019: | ||||||||||||||||
Asset: | ||||||||||||||||
Interest rate swaps (prepaids and other assets) | $ | 1,018 | $ | — | $ | 1,018 | $ | — | ||||||||
Total assets | $ | 1,018 | $ | — | $ | 1,018 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Interest rate swaps (other liabilities) | $ | 1,442 | $ | — | $ | 1,442 | $ | — | ||||||||
Total liabilities | $ | 1,442 | $ | — | $ | 1,442 | $ | — |
Level 1 | Level 2 | Level 3 | ||||||||||||||
Quoted Prices in Active Markets for Identical Assets or Liabilities | Significant Observable Inputs | Significant Unobservable Inputs | ||||||||||||||
Total | ||||||||||||||||
Fair value as of December 31, 2018: | ||||||||||||||||
Asset: | ||||||||||||||||
Interest rate swaps (prepaids and other assets) | $ | 5,755 | $ | — | $ | 5,755 | $ | — | ||||||||
Total assets | $ | 5,755 | $ | — | $ | 5,755 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Interest rate swaps (other liabilities) | $ | 6 | $ | — | $ | 6 | $ | — | ||||||||
Total liabilities | $ | 6 | $ | — | $ | 6 | $ | — |
Level 1 | Level 2 | Level 3 | ||||||||||||||
Quoted Prices in Active Markets for Identical Assets or Liabilities | Significant Observable Inputs | Significant Unobservable Inputs | ||||||||||||||
Total | ||||||||||||||||
Fair value as of March 31, 2020: | ||||||||||||||||
Asset: | ||||||||||||||||
Long-lived assets | $ | 60,000 | $ | — | $ | — | $ | 60,000 |
March 31, 2020 | December 31, 2019 | |||||||
Level 1 Quoted Prices in Active Markets for Identical Assets or Liabilities | $ | — | $ | — | ||||
Level 2 Significant Observable Inputs | 1,148,011 | 1,169,481 | ||||||
Level 3 Significant Unobservable Inputs | 1,033,159 | 434,333 | ||||||
Total fair value of debt | $ | 2,181,170 | $ | 1,603,814 | ||||
Recorded value of debt | $ | 2,167,554 | $ | 1,569,773 |
March 31, 2019 | December 31, 2018 | |||||||
Level 1 Quoted Prices in Active Markets for Identical Assets or Liabilities | $ | — | $ | — | ||||
Level 2 Significant Observable Inputs | 1,116,493 | 1,085,138 | ||||||
Level 3 Significant Unobservable Inputs | 452,278 | 583,337 | ||||||
Total fair value of debt | $ | 1,568,771 | $ | 1,668,475 | ||||
Recorded value of debt | $ | 1,582,784 | $ | 1,712,918 |
Three months ended March 31, | ||||||||
2019 | 2018 | |||||||
Total number of shares purchased | — | 443,700 | ||||||
Average price paid per share | $ | — | $ | 22.52 | ||||
Total price paid exclusive of commissions and related fees (in thousands) | $ | — | $ | 9,990 |
Limited Partnership Units | ||||||||||||
General Partnership Units | Class A | Class B | Total | |||||||||
Balance December 31, 2018 | 1,000,000 | 4,960,684 | 92,941,783 | 97,902,467 | ||||||||
Grant of restricted common share awards by the Company, net of forfeitures | — | — | 242,167 | 242,167 | ||||||||
Units withheld for employee income taxes | — | — | (81,284 | ) | (81,284 | ) | ||||||
Balance March 31, 2019 | 1,000,000 | 4,960,684 | 93,102,666 | 98,063,350 | ||||||||
Balance December 31, 2019 | 1,000,000 | 4,911,173 | 91,892,260 | 96,803,433 | ||||||||
Grant of restricted common share awards by the Company, net of forfeitures | — | — | 241,038 | 241,038 | ||||||||
Units withheld for employee income taxes | — | — | (56,597 | ) | (56,597 | ) | ||||||
Balance March 31, 2020 | 1,000,000 | 4,911,173 | 92,076,701 | 96,987,874 |
Limited Partnership Units | ||||||||||||
General Partnership Units | Class A | Class B | Total | |||||||||
Balance December 31, 2017 | 1,000,000 | 4,995,433 | 93,560,536 | 98,555,969 | ||||||||
Grant of restricted common share awards by the Company, net of forfeitures | — | — | 355,184 | 355,184 | ||||||||
Repurchase of units | — | — | (443,700 | ) | (443,700 | ) | ||||||
Units withheld for employee income taxes | — | — | (89,437 | ) | (89,437 | ) | ||||||
Balance March 31, 2018 | 1,000,000 | 4,995,433 | 93,382,583 | 98,378,016 | ||||||||
Balance December 31, 2018 | 1,000,000 | 4,960,684 | 92,941,783 | 97,902,467 | ||||||||
Grant of restricted common share awards by the Company, net of forfeitures | — | — | 242,167 | 242,167 | ||||||||
Units withheld for employee income taxes | — | — | (81,284 | ) | (81,284 | ) | ||||||
Balance March 31, 2019 | 1,000,000 | 4,960,684 | 93,102,666 | 98,063,350 |
Three months ended March 31, | ||||||||
2020 | 2019 | |||||||
Numerator: | ||||||||
Net income (loss) attributable to Tanger Factory Outlet Centers, Inc. | $ | (26,882 | ) | $ | 62,331 | |||
Less allocation of earnings to participating securities | (516 | ) | (611 | ) | ||||
Net income (loss) available to common shareholders of Tanger Factory Outlet Centers, Inc. | $ | (27,398 | ) | $ | 61,720 | |||
Denominator: | ||||||||
Basic weighted average common shares | 92,500 | 93,303 | ||||||
Diluted weighted average common shares | 92,500 | 93,303 | ||||||
Basic earnings per common share: | ||||||||
Net income (loss) | $ | (0.30 | ) | $ | 0.66 | |||
Diluted earnings per common share: | ||||||||
Net income (loss) | $ | (0.30 | ) | $ | 0.66 |
Three months ended March 31, | ||||||||
2019 | 2018 | |||||||
Numerator: | ||||||||
Net income attributable to Tanger Factory Outlet Centers, Inc. | $ | 62,331 | $ | 22,838 | ||||
Less allocation of earnings to participating securities | (611 | ) | (263 | ) | ||||
Net income available to common shareholders of Tanger Factory Outlet Centers, Inc. | $ | 61,720 | $ | 22,575 | ||||
Denominator: | ||||||||
Basic weighted average common shares | 93,303 | 93,644 | ||||||
Diluted weighted average common shares | 93,303 | 93,644 | ||||||
Basic earnings per common share: | ||||||||
Net income | $ | 0.66 | $ | 0.24 | ||||
Diluted earnings per common share: | ||||||||
Net income | $ | 0.66 | $ | 0.24 |
Three months ended March 31, | ||||||||
2020 | 2019 | |||||||
Numerator: | ||||||||
Net income (loss) attributable to partners of the Operating Partnership | $ | (28,309 | ) | $ | 65,646 | |||
Less allocation of earnings to participating securities | (516 | ) | (611 | ) | ||||
Net income (loss) available to common unitholders of the Operating Partnership | $ | (28,825 | ) | $ | 65,035 | |||
Denominator: | ||||||||
Basic weighted average common units | 97,411 | 98,264 | ||||||
Diluted weighted average common units | 97,411 | 98,264 | ||||||
Basic earnings per common unit: | ||||||||
Net income (loss) | $ | (0.30 | ) | $ | 0.66 | |||
Diluted earnings per common unit: | ||||||||
Net income (loss) | $ | (0.30 | ) | $ | 0.66 |
Three months ended March 31, | ||||||||
2019 | 2018 | |||||||
Numerator: | ||||||||
Net income attributable to partners of the Operating Partnership | $ | 65,646 | $ | 24,055 | ||||
Less allocation of earnings to participating securities | (611 | ) | (263 | ) | ||||
Net income available to common unitholders of the Operating Partnership | $ | 65,035 | $ | 23,792 | ||||
Denominator: | ||||||||
Basic weighted average common units | 98,264 | 98,640 | ||||||
Diluted weighted average common units | 98,264 | 98,640 | ||||||
Basic earnings per common unit: | ||||||||
Net income | $ | 0.66 | $ | 0.24 | ||||
Diluted earnings per common unit: | ||||||||
Net income | $ | 0.66 | $ | 0.24 |
Three months ended | ||||||||
March 31, | ||||||||
2020 | 2019 | |||||||
Restricted common shares | $ | 2,227 | $ | 2,513 | ||||
Notional unit performance awards | 1,520 | 1,262 | ||||||
Options | 41 | 43 | ||||||
Total equity-based compensation | $ | 3,788 | $ | 3,818 |
Three months ended | ||||||||
March 31, | ||||||||
2019 | 2018 | |||||||
Restricted common shares | $ | 2,513 | $ | 2,376 | ||||
Notional unit performance awards | 1,262 | 937 | ||||||
Options | 43 | 79 | ||||||
Total equity-based compensation | $ | 3,818 | $ | 3,392 |
Three months ended | ||||||||
March 31, | ||||||||
2020 | 2019 | |||||||
Equity-based compensation expense capitalized | $ | 101 | $ | 92 |
Three months ended | ||||||||
March 31, | ||||||||
2019 | 2018 | |||||||
Equity-based compensation expense capitalized | $ | 92 | $ | 264 |
Performance targets (1) | |||||||||||
Absolute portion of award: | |||||||||||
Percent of total award | 33.3% | 33.3% | |||||||||
Absolute total shareholder return range | 19.1% - 29.5% | 36.8 | % | - | 52.1% | ||||||
Percentage of units to be earned | 20%-100% | 20 | % | - | 100% | ||||||
Relative portion of award: | |||||||||||
Percent of total award | 66.7% | 66.7% | |||||||||
Percentile rank of peer group range(2) | 30th - 80th | 30 | th | - | 80th | ||||||
Percentage of units to be earned | 20%-100% | 20 | % | - | 100% | ||||||
Maximum number of restricted common shares that may be earned | 531,827 | 696,687 | |||||||||
Grant date fair value per share | $ | 12.09 | $ | 7.30 |
(1) | The number of restricted common shares received under the |
(2) | The peer group is based on companies included in the FTSE NAREIT Retail Index. |
Risk free interest rate (1) | % | ||
Expected dividend yield (2) | % | ||
Expected volatility (3) | % |
(1) | Represents the interest rate as of the grant date on US treasury bonds having the same life as the estimated life of the restricted unit grants. |
(2) | The dividend yield is calculated utilizing the dividends paid for the previous five-year period. |
(3) | Based on a mix of historical and implied volatility for our common shares and the common shares of our peer index companies over the measurement period. |
Tanger Factory Outlet Centers, Inc. Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest in Operating Partnership Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||
Foreign Currency | Cash flow hedges | Total | Foreign Currency | Cash flow hedges | Total | |||||||||||||||||||
Balance December 31, 2019 | $ | (25,094 | ) | $ | (401 | ) | $ | (25,495 | ) | $ | (1,369 | ) | $ | (24 | ) | $ | (1,393 | ) | ||||||
Other comprehensive loss before reclassifications | (7,343 | ) | (5,388 | ) | (12,731 | ) | (390 | ) | (286 | ) | (676 | ) | ||||||||||||
Reclassification out of accumulated other comprehensive income (loss) into interest expense | — | (2 | ) | (2 | ) | — | — | — | ||||||||||||||||
Balance March 31, 2020 | $ | (32,437 | ) | $ | (5,791 | ) | $ | (38,228 | ) | $ | (1,759 | ) | $ | (310 | ) | $ | (2,069 | ) |
Tanger Factory Outlet Centers, Inc. Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest in Operating Partnership Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||
Foreign Currency | Cash flow hedges | Total | Foreign Currency | Cash flow hedges | Total | |||||||||||||||||||
Balance December 31, 2018 | $ | (32,610 | ) | $ | 5,459 | $ | (27,151 | ) | $ | (1,770 | ) | $ | 290 | $ | (1,480 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | 1,851 | (1,166 | ) | 685 | 98 | (62 | ) | 36 | ||||||||||||||||
Reclassification out of accumulated other comprehensive income (loss) into interest expense | — | (687 | ) | (687 | ) | — | (37 | ) | (37 | ) | ||||||||||||||
Balance March 31, 2019 | $ | (30,759 | ) | $ | 3,606 | $ | (27,153 | ) | $ | (1,672 | ) | $ | 191 | $ | (1,481 | ) |
Tanger Factory Outlet Centers, Inc. Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest in Operating Partnership Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||
Foreign Currency | Cash flow hedges | Total | Foreign Currency | Cash flow hedges | Total | |||||||||||||||||||
Balance December 31, 2018 | $ | (32,610 | ) | $ | 5,459 | $ | (27,151 | ) | $ | (1,770 | ) | $ | 290 | $ | (1,480 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | 1,851 | (1,166 | ) | 685 | 98 | (62 | ) | 36 | ||||||||||||||||
Reclassification out of accumulated other comprehensive income into interest expense | — | (687 | ) | (687 | ) | — | (37 | ) | (37 | ) | ||||||||||||||
Balance March 31, 2019 | $ | (30,759 | ) | $ | 3,606 | $ | (27,153 | ) | $ | (1,672 | ) | $ | 191 | $ | (1,481 | ) |
Tanger Factory Outlet Centers, Inc. Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest in Operating Partnership Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||
Foreign Currency | Cash flow hedges | Total | Foreign Currency | Cash flow hedges | Total | |||||||||||||||||||
Balance December 31, 2017 | $ | (24,360 | ) | $ | 5,075 | $ | (19,285 | ) | $ | (1,329 | ) | $ | 269 | $ | (1,060 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | (2,938 | ) | 2,914 | (24 | ) | (157 | ) | 156 | (1 | ) | ||||||||||||||
Reclassification out of accumulated other comprehensive income into interest expense | — | (314 | ) | (314 | ) | — | (17 | ) | (17 | ) | ||||||||||||||
Balance March 31, 2018 | $ | (27,298 | ) | $ | 7,675 | $ | (19,623 | ) | $ | (1,486 | ) | $ | 408 | $ | (1,078 | ) |
Foreign Currency | Cash flow hedges | Accumulated Other Comprehensive Income (Loss) | ||||||||||
Balance December 31, 2019 | $ | (26,463 | ) | $ | (425 | ) | $ | (26,888 | ) | |||
Other comprehensive loss before reclassifications | (7,733 | ) | (5,674 | ) | (13,407 | ) | ||||||
Reclassification out of accumulated other comprehensive income (loss) into interest expense | — | (2 | ) | (2 | ) | |||||||
Balance March 31, 2020 | $ | (34,196 | ) | $ | (6,101 | ) | $ | (40,297 | ) |
Foreign Currency | Cash flow hedges | Accumulated Other Comprehensive Income (Loss) | ||||||||||
Balance December 31, 2018 | $ | (34,380 | ) | $ | 5,749 | $ | (28,631 | ) | ||||
Other comprehensive income (loss) before reclassifications | 1,949 | (1,228 | ) | 721 | ||||||||
Reclassification out of accumulated other comprehensive income (loss) into interest expense | — | (724 | ) | (724 | ) | |||||||
Balance March 31, 2019 | $ | (32,431 | ) | $ | 3,797 | $ | (28,634 | ) |
Foreign Currency | Cash flow hedges | Accumulated Other Comprehensive Income (Loss) | ||||||||||
Balance December 31, 2018 | $ | (34,380 | ) | $ | 5,749 | $ | (28,631 | ) | ||||
Other comprehensive income (loss) before reclassifications | 1,949 | (1,228 | ) | 721 | ||||||||
Reclassification out of accumulated other comprehensive income into interest expense | — | (724 | ) | (724 | ) | |||||||
Balance March 31, 2019 | $ | (32,431 | ) | $ | 3,797 | $ | (28,634 | ) |
Foreign Currency | Cash flow hedges | Accumulated Other Comprehensive Income (Loss) | ||||||||||
Balance December 31, 2017 | $ | (25,689 | ) | $ | 5,344 | $ | (20,345 | ) | ||||
Other comprehensive income (loss) before reclassifications | (3,095 | ) | 3,070 | (25 | ) | |||||||
Reclassification out of accumulated other comprehensive income into interest expense | — | (331 | ) | (331 | ) | |||||||
Balance March 31, 2018 | $ | (28,784 | ) | $ | 8,083 | $ | (20,701 | ) |
As of | As of | |||||||
March 31, 2019 | March 31, 2018 | |||||||
Costs relating to construction included in accounts payable and accrued expenses | $ | 12,791 | $ | 18,978 |
As of | As of | |||||||
March 31, 2019 | March 31, 2018 | |||||||
Dividends payable | $ | 35,199 | $ | — |
Three months ended March 31, | ||||||||
2019 | 2018 | |||||||
Interest paid | $ | 16,022 | $ | 15,903 |
March 31, 2019 | ||||
Non-Cash operating lease right-of-use assets exchanged for operating lease liabilities | $ | 87,679 | ||
Non-Cash operating lease liabilities exchanged for operating right-of-use assets | 92,354 |
Three months ended | ||||||||
March 31, | ||||||||
2020 | 2019 | |||||||
Rental revenues - fixed | $ | 86,933 | $ | 93,459 | ||||
Rental revenues - variable (1) | 21,625 | 26,495 | ||||||
Rental revenues | $ | 108,558 | $ | 119,954 |
Rental revenues - fixed | $ | 93,459 | ||
Rental revenues - variable (1) | 26,495 | |||
Rental revenues | $ | 119,954 |
(1) | Primarily includes rents based on a percentage of tenant sales volume and reimbursable expenses such as common area expenses, utilities, insurance and real estate taxes. |
As of | As of | |||||||
March 31, 2020 | March 31, 2019 | |||||||
Costs relating to construction included in accounts payable and accrued expenses | $ | 18,168 | $ | 12,791 |
For the remainder of 2019 | $ | 241,203 | ||
2020 | 308,442 | |||
2021 | 270,437 | |||
2022 | 235,196 | |||
2023 | 200,954 | |||
2024 | 166,256 | |||
Thereafter | 291,784 | |||
$ | 1,714,272 |
As of | As of | |||||||
March 31, 2020 | March 31, 2019 | |||||||
Dividends payable | $ | 35,108 | $ | 35,199 |
Three months ended March 31, | ||||||||
2020 | 2019 | |||||||
Interest paid | $ | 14,811 | $ | 16,022 |
2019 | $ | 285,343 | ||
2020 | 265,361 | |||
2021 | 229,553 | |||
2022 | 195,808 | |||
2023 | 164,845 | |||
Thereafter | 364,844 | |||
$ | 1,505,754 |
Operating lease costs | $ | 1,404 | ||
Short-term lease costs | 591 | |||
Variable lease costs (1) | 78 | |||
Total lease costs | $ | 2,073 |
March 31, 2019 | ||||
Operating cash outflows related to operating leases | $ | 1,403 |
For the remainder of 2019 | $ | 4,168 | ||
2020 | 5,568 | |||
2021 | 5,613 | |||
2022 | 5,669 | |||
2023 | 5,709 | |||
2024 | 5,765 | |||
Thereafter | 226,837 | |||
Total lease payments | $ | 259,329 | ||
Less imputed interest | 166,975 | |||
Present value of lease liabilities | $ | 92,354 |
2019 | $ | 7,526 | ||
2020 | 7,311 | |||
2021 | 7,140 | |||
2022 | 7,127 | |||
2023 | 7,167 | |||
Thereafter | 258,438 | |||
Total minimum payment | $ | 294,709 |
Consolidated Outlet Centers | Unconsolidated Joint Venture Outlet Centers | Consolidated Outlet Centers | Unconsolidated Joint Venture Outlet Centers | |||||||||||||||||||||||||
Outlet Center | Quarter Opened/Disposed | Square Feet | Number of Outlet Centers | Square Feet | Number of Outlet Centers | Quarter Opened/Disposed | Square Feet | Number of Outlet Centers | Square Feet | Number of Outlet Centers | ||||||||||||||||||
As of January 1, 2018 | 12,930 | 36 | 2,370 | 8 | ||||||||||||||||||||||||
Other | (7 | ) | — | 1 | — | |||||||||||||||||||||||
As of December 31, 2018 | 12,923 | 36 | 2,371 | 8 | ||||||||||||||||||||||||
As of January 1, 2019 | 12,923 | 36 | 2,371 | 8 | ||||||||||||||||||||||||
Dispositions: | ||||||||||||||||||||||||||||
Nags Head | First Quarter | (82 | ) | (1 | ) | — | — | First Quarter | (82 | ) | (1 | ) | — | — | ||||||||||||||
Ocean City | First Quarter | (200 | ) | (1 | ) | — | — | First Quarter | (200 | ) | (1 | ) | — | — | ||||||||||||||
Park City | First Quarter | (320 | ) | (1 | ) | — | — | First Quarter | (320 | ) | (1 | ) | — | — | ||||||||||||||
Williamsburg | First Quarter | (276 | ) | (1 | ) | — | — | First Quarter | (276 | ) | (1 | ) | — | — | ||||||||||||||
Bromont | Second Quarter | — | — | (161 | ) | (1 | ) | |||||||||||||||||||||
Other | 2 | — | — | — | 3 | — | 2 | — | ||||||||||||||||||||
As of March 31, 2019 | 12,047 | 32 | 2,371 | 8 | ||||||||||||||||||||||||
As of December 31, 2019 | 12,048 | 32 | 2,212 | 7 | ||||||||||||||||||||||||
Other | (4 | ) | — | — | — | |||||||||||||||||||||||
As of March 31, 2020 | 12,044 | 32 | 2,212 | 7 |
Consolidated Outlet Centers | Legal | Square | % | Legal | Square | % | ||||||||||
Location | Ownership % | Feet | Occupied | Ownership % | Feet | Occupied | ||||||||||
Deer Park, New York | 100 | 739,109 | 98 | 100 | 739,110 | 98 | ||||||||||
Riverhead, New York (1) | 100 | 729,778 | 95 | 100 | 729,778 | 92 | ||||||||||
Rehoboth Beach, Delaware (1) | 100 | 557,353 | 97 | 100 | 557,353 | 95 | ||||||||||
Foley, Alabama | 100 | 554,673 | 94 | 100 | 554,587 | 88 | ||||||||||
Atlantic City, New Jersey (1) (3) | 100 | 489,706 | 80 | 100 | 489,718 | 79 | ||||||||||
San Marcos, Texas | 100 | 471,816 | 95 | 100 | 471,816 | 95 | ||||||||||
Sevierville, Tennessee (1) | 100 | 447,815 | 99 | 100 | 447,815 | 99 | ||||||||||
Savannah, Georgia | 100 | 429,089 | 97 | 100 | 429,089 | 96 | ||||||||||
Myrtle Beach Hwy 501, South Carolina | 100 | 426,523 | 98 | 100 | 426,523 | 96 | ||||||||||
Jeffersonville, Ohio | 100 | 411,866 | 94 | 100 | 411,904 | 84 | ||||||||||
Glendale, Arizona (Westgate) | 100 | 410,734 | 97 | 100 | 410,751 | 97 | ||||||||||
Myrtle Beach Hwy 17, South Carolina (1) | 100 | 403,425 | 100 | 100 | 403,425 | 99 | ||||||||||
Charleston, South Carolina | 100 | 382,180 | 99 | 100 | 379,328 | 100 | ||||||||||
Lancaster, Pennsylvania | 100 | 376,997 | 92 | 100 | 375,857 | 91 | ||||||||||
Pittsburgh, Pennsylvania | 100 | 372,883 | 97 | 100 | 373,863 | 95 | ||||||||||
Commerce, Georgia | 100 | 371,408 | 94 | 100 | 371,408 | 96 | ||||||||||
Grand Rapids, Michigan | 100 | 357,103 | 96 | 100 | 357,119 | 90 | ||||||||||
Fort Worth, Texas | 100 | 351,741 | 97 | 100 | 351,741 | 99 | ||||||||||
Daytona Beach, Florida | 100 | 351,721 | 98 | 100 | 351,721 | 98 | ||||||||||
Branson, Missouri | 100 | 329,861 | 98 | 100 | 329,861 | 99 | ||||||||||
Southaven, Mississippi (2) (3) | 50 | 324,703 | 94 | 50 | 324,717 | 99 | ||||||||||
Locust Grove, Georgia | 100 | 321,082 | 97 | 100 | 321,082 | 95 | ||||||||||
Gonzales, Louisiana | 100 | 321,066 | 96 | 100 | 321,066 | 96 | ||||||||||
Mebane, North Carolina | 100 | 318,886 | 99 | 100 | 318,886 | 100 | ||||||||||
Howell, Michigan | 100 | 314,438 | 92 | 100 | 314,438 | 88 | ||||||||||
Mashantucket, Connecticut (Foxwoods) (1) | 100 | 311,539 | 93 | 100 | 311,507 | 93 | ||||||||||
Tilton, New Hampshire | 100 | 250,107 | 96 | 100 | 250,107 | 93 | ||||||||||
Hershey, Pennsylvania | 100 | 249,696 | 99 | 100 | 249,696 | 99 | ||||||||||
Hilton Head II, South Carolina | 100 | 206,564 | 88 | 100 | 206,564 | 98 | ||||||||||
Hilton Head I, South Carolina | 100 | 181,670 | 100 | 100 | 181,670 | 97 | ||||||||||
Terrell, Texas | 100 | 177,800 | 97 | 100 | 177,800 | 87 | ||||||||||
Blowing Rock, North Carolina | 100 | 104,009 | 95 | 100 | 104,009 | 85 | ||||||||||
Totals | 12,047,341 | 95 | 12,044,309 | 94 |
(1) | These properties or a portion thereof are subject to a ground lease. |
(2) | Based on capital contribution and distribution provisions in the joint venture agreement, we expect our economic interest in the |
(3) | Property encumbered by mortgage. See Notes |
Unconsolidated joint venture properties | Legal | Square | % | Legal | Square | % | ||||||||||
Location | Ownership % | Feet | Occupied | Ownership % | Feet | Occupied | ||||||||||
Charlotte, North Carolina (1) | 50 | 398,697 | 97 | 50 | 398,676 | 97 | ||||||||||
Ottawa, Ontario | 50 | 357,218 | 96 | |||||||||||||
Columbus, Ohio (1) | 50 | 355,245 | 95 | 50 | 355,245 | 97 | ||||||||||
Ottawa, Ontario | 50 | 355,013 | 94 | |||||||||||||
Texas City, Texas (Galveston/Houston) (1) | 50 | 352,705 | 97 | 50 | 352,705 | 92 | ||||||||||
National Harbor, Maryland (1) | 50 | 341,156 | 96 | 50 | 341,156 | 96 | ||||||||||
Cookstown, Ontario | 50 | 307,779 | 97 | 50 | 307,895 | 100 | ||||||||||
Bromont, Quebec | 50 | 161,449 | 77 | |||||||||||||
Saint-Sauveur, Quebec (1) | 50 | 99,405 | 94 | 50 | 99,405 | 92 | ||||||||||
Total | 2,371,449 | 95 | 2,212,300 | 96 |
(1) | Property encumbered by mortgage. See Note |
Trailing twelve months ended March 31, 2020(1),(2) | |||||||||||||||
# of Leases | Square Feet (in 000’s) | Average Annual Straight-line Rent (psf) | Average Tenant Allowance (psf) | Average Initial Term (in years) | Net Average Annual Straight-line Rent (psf) (3) | ||||||||||
Re-tenant | 118 | 504 | $ | 36.13 | $ | 47.70 | 7.75 | $ | 29.98 | ||||||
Renewal | 178 | 839 | $ | 28.20 | $ | 0.90 | 3.90 | $ | 27.97 | ||||||
Trailing twelve months ended March 31, 2019(1),(2) | |||||||||||||||
# of Leases | Square Feet (in 000’s) | Average Annual Straight-line Rent (psf) | Average Tenant Allowance (psf) | Average Initial Term (in years) | Net Average Annual Straight-line Rent (psf) (3) | ||||||||||
Re-tenant | 81 | 388 | $ | 33.32 | $ | 45.13 | 7.83 | $ | 27.56 | ||||||
Renewal | 280 | 1,404 | $ | 34.37 | $ | 0.49 | 3.82 | $ | 34.24 |
Trailing twelve months ended March 31, 2019(1),(2) | |||||||||||||||
# of Leases | Square Feet (in 000's) | Average Annual Straight-line Rent (psf) | Average Tenant Allowance (psf) | Average Initial Term (in years) | Net Average Annual Straight-line Rent (psf) (3) | ||||||||||
Re-tenant | 81 | 388 | $ | 33.32 | $ | 45.13 | 7.83 | $ | 27.56 | ||||||
Renewal | 280 | 1,404 | $ | 34.37 | $ | 0.49 | 3.82 | $ | 34.24 | ||||||
Trailing twelve months ended March 31, 2018(1) | |||||||||||||||
# of Leases | Square Feet (in 000's) | Average Annual Straight-line Rent (psf) | Average Tenant Allowance (psf) | Average Initial Term (in years) | Net Average Annual Straight-line Rent (psf) (3) | ||||||||||
Re-tenant | 84 | 415 | $ | 34.32 | $ | 70.88 | 8.55 | $ | 26.03 | ||||||
Renewal | 262 | 1,300 | $ | 29.25 | $ | 0.25 | 4.07 | $ | 29.19 |
(1) | Excludes license agreements, seasonal tenants, and month-to-month leases. |
(2) | Excludes outlet centers sold in March 2019 (Nags Head, Ocean City, Park City, and Williamsburg Outlets Centers). |
(3) | Net average annual straight-line base rent is calculated by dividing the average tenant allowance costs per square foot by the average initial term and subtracting this calculated number from the average straight-line base rent per year amount. The average annual straight-line base rent disclosed in the table above includes all concessions, abatements and reimbursements of rent to tenants. The average tenant allowance disclosed in the table above includes other landlord costs. |
2019 | 2018 | Increase/(Decrease) | 2020 | 2019 | Increase/(Decrease) | |||||||||||||||||||
Rental revenues from existing properties | $ | 110,822 | $ | 111,564 | $ | (742 | ) | $ | 106,778 | $ | 110,822 | $ | (4,044 | ) | ||||||||||
Rental revenues from properties disposed | 6,402 | 6,541 | (139 | ) | 12 | 6,402 | (6,390 | ) | ||||||||||||||||
Straight-line rent adjustments | 1,970 | 1,948 | 22 | 1,873 | 1,970 | (97 | ) | |||||||||||||||||
Lease termination fees | 1,130 | 1,051 | 79 | 164 | 1,130 | (966 | ) | |||||||||||||||||
Amortization of above and below market rent adjustments, net | (370 | ) | (448 | ) | 78 | (269 | ) | (370 | ) | 101 | ||||||||||||||
$ | 119,954 | $ | 120,656 | $ | (702 | ) | $ | 108,558 | $ | 119,954 | $ | (11,396 | ) |
2019 | 2018 | Increase/(Decrease) | 2020 | 2019 | Increase/(Decrease) | |||||||||||||||||||
Other revenues from existing properties | $ | 1,805 | $ | 1,633 | $ | 172 | $ | 1,632 | $ | 1,805 | $ | (173 | ) | |||||||||||
Other revenues from properties disposed | 54 | 47 | 7 | |||||||||||||||||||||
Other revenues from property disposed | — | 54 | (54 | ) | ||||||||||||||||||||
$ | 1,859 | $ | 1,680 | $ | 179 | $ | 1,632 | $ | 1,859 | $ | (227 | ) |
2019 | 2018 | Increase/(Decrease) | ||||||||||
Property operating expenses from existing properties | $ | 38,480 | $ | 38,617 | $ | (137 | ) | |||||
Properties operating expenses from properties disposed | 2,592 | 2,250 | 342 | |||||||||
Other property operating expenses | 1,305 | 1,351 | (46 | ) | ||||||||
$ | 42,377 | $ | 42,218 | $ | 159 |
2020 | 2019 | Increase/(Decrease) | ||||||||||
Property operating expenses from existing properties | $ | 37,293 | $ | 38,480 | $ | (1,187 | ) | |||||
Property operating expenses from property disposed | — | 2,592 | (2,592 | ) | ||||||||
Expenses related to unconsolidated joint ventures | 882 | 745 | 137 | |||||||||
Other property operating expense | 452 | 560 | (108 | ) | ||||||||
$ | 38,627 | $ | 42,377 | $ | (3,750 | ) |
2019 | 2018 | Increase/(Decrease) | ||||||||||
Depreciation and amortization from existing properties | $ | 30,504 | $ | 31,788 | $ | (1,284 | ) | |||||
Depreciation and amortization from properties disposed | 1,256 | 1,335 | (79 | ) | ||||||||
$ | 31,760 | $ | 33,123 | $ | (1,363 | ) |
2020 | 2019 | Increase/(Decrease) | ||||||||||
Depreciation and amortization expenses from existing properties | $ | 29,417 | $ | 30,504 | $ | (1,087 | ) | |||||
Depreciation and amortization from property disposed | — | 1,256 | (1,256 | ) | ||||||||
$ | 29,417 | $ | 31,760 | $ | (2,343 | ) |
2020 | 2019 | Increase/(Decrease) | ||||||||||
Equity in earnings from existing properties | $ | 1,527 | $ | 1,627 | $ | (100 | ) | |||||
Equity in earnings from property disposed | — | 2 | (2 | ) | ||||||||
$ | 1,527 | $ | 1,629 | $ | (102 | ) |
Three months ended March 31, | Three months ended March 31, | |||||||
2019 | 2018 | |||||||
Total number of shares purchased | — | 443,700 | ||||||
Average price paid per share | $ | — | $ | 22.52 | ||||
Total price paid exclusive of commissions and related fees (in thousands) | $ | — | $ | 9,990 |
Three months ended March 31, | Three months ended March 31, | |||||||||||||||||||||||
2019 | 2018 | Change | 2020 | 2019 | Change | |||||||||||||||||||
Net cash provided by operating activities | $ | 33,214 | $ | 49,966 | $ | (16,752 | ) | $ | 27,340 | $ | 33,214 | $ | (5,874 | ) | ||||||||||
Net cash provided by (used in) investing activities | 127,273 | (14,082 | ) | 141,355 | (6,377 | ) | 127,273 | (133,650 | ) | |||||||||||||||
Net cash used in financing activities | (167,898 | ) | (38,568 | ) | (129,330 | ) | ||||||||||||||||||
Net cash provided by (used) in financing activities | 562,901 | (167,898 | ) | 730,799 | ||||||||||||||||||||
Effect of foreign currency rate changes on cash and equivalents | (10 | ) | (28 | ) | 18 | (24 | ) | (10 | ) | (14 | ) | |||||||||||||
Net decrease in cash and cash equivalents | $ | (7,421 | ) | $ | (2,712 | ) | $ | (4,709 | ) | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | 583,840 | $ | (7,421 | ) | $ | 591,261 |
Three months ended March 31, | Three months ended March 31, | |||||||||||||||||||||||
2019 | 2018 | Change | 2020 | 2019 | Change | |||||||||||||||||||
Capital expenditures analysis: | ||||||||||||||||||||||||
New outlet center developments and expansions | $ | 939 | $ | 851 | $ | 88 | $ | 843 | $ | 939 | $ | (96 | ) | |||||||||||
Major outlet center renovations | 197 | 900 | (703 | ) | 2,170 | 197 | 1,973 | |||||||||||||||||
Second generation tenant allowances | 2,974 | 2,926 | 48 | 908 | 2,974 | (2,066 | ) | |||||||||||||||||
Other capital expenditures | 2,907 | 1,823 | 1,084 | 2,976 | 2,907 | 69 | ||||||||||||||||||
7,017 | 6,500 | 517 | 6,897 | 7,017 | (120 | ) | ||||||||||||||||||
Conversion from accrual to cash basis | 2,889 | 13,214 | (10,325 | ) | 3,654 | 2,889 | 765 | |||||||||||||||||
Additions to rental property-cash basis | $ | 9,906 | $ | 19,714 | $ | (9,808 | ) | $ | 10,551 | $ | 9,906 | $ | 645 |
Senior unsecured notes financial covenants | Required | Actual | |
Total consolidated debt to adjusted total assets | <60% | % | |
Total secured debt to adjusted total assets | <40% | % | |
Total unencumbered assets to unsecured debt | >150% | % |
Contractual Obligations | Remainder of 2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | Total | |||||||||||||||||||||
Debt (1) | $ | 2,694 | $ | 657,023 | $ | 4,436 | $ | 254,768 | $ | 605,140 | $ | 657,206 | $ | 2,181,267 | ||||||||||||||
Interest payments (2) | $ | 50,588 | $ | 63,205 | $ | 52,022 | $ | 50,883 | $ | 34,838 | $ | 48,516 | $ | 300,052 |
(1) | These amounts represent total future cash payments related to debt obligations outstanding as of March 31, 2020. |
(2) | These amounts represent future interest payments related to our debt obligations based on the fixed and variable interest rates specified in the associated debt agreements, including the effects of our interest rate swaps. All of our variable rate debt agreements are based on the one month LIBOR rate, thus for purposes of calculating future interest amounts on variable interest rate debt, the one month LIBOR rate as of March 31, 2020 was used. |
Joint Venture | Total Joint Venture Debt | Maturity Date | Interest Rate | Percent Guaranteed by the Operating Partnership | Maximum Guaranteed Amount by the Company | Total Joint Venture Debt | Maturity Date | Interest Rate | Percent Guaranteed by the Operating Partnership | Maximum Guaranteed Amount by the Company | ||||||||||||||||||||||
Charlotte | $ | 100.0 | July 2028 | 4.27% | — | % | $ | — | $ | 100.0 | July 2028 | 4.27% | — | % | $ | — | ||||||||||||||||
Columbus | 85.0 | November 2019 | LIBOR + 1.65% | 7.5 | % | 6.4 | 85.0 | November 2020 | LIBOR + 1.65% | 7.5 | % | 6.4 | ||||||||||||||||||||
Galveston/Houston | 80.0 | July 2020 | LIBOR + 1.65% | 12.5 | % | 10.0 | 80.0 | July 2020 | LIBOR + 1.65% | 12.5 | % | 10.0 | ||||||||||||||||||||
National Harbor | 95.0 | January 2030 | 4.63 | % | — | % | — | 95.0 | January 2030 | 4.63 | % | — | % | — | ||||||||||||||||||
RioCan Canada | 9.4 | May 2020 | 5.75 | % | 31.9 | % | 3.0 | 8.3 | May 2020 | 5.75 | % | 33.7 | % | 2.8 | ||||||||||||||||||
Debt premium and debt origination costs | (1.4 | ) | (1.1 | ) | ||||||||||||||||||||||||||||
$ | 368.0 | $ | 19.4 | $ | 367.2 | $ | 19.2 |
Three months ended | Three months ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2019 | 2018 | 2020 | 2019 | |||||||||||||
Net income | $ | 65,841 | $ | 23,685 | ||||||||||||
Net income (loss) | $ | (28,119 | ) | $ | 65,841 | |||||||||||
Adjusted for: | ||||||||||||||||
Depreciation and amortization of real estate assets - consolidated | 31,148 | 32,542 | 28,801 | 31,148 | ||||||||||||
Depreciation and amortization of real estate assets - unconsolidated joint ventures | 3,130 | 3,229 | 3,018 | 3,130 | ||||||||||||
Impairment charge - consolidated | 45,675 | — | ||||||||||||||
Gain on sale of assets | (43,422 | ) | — | — | (43,422 | ) | ||||||||||
FFO | 56,697 | 59,456 | 49,375 | 56,697 | ||||||||||||
FFO attributable to noncontrolling interests in other consolidated partnerships | (195 | ) | 370 | (190 | ) | (195 | ) | |||||||||
Allocation of earnings to participating securities | (611 | ) | (477 | ) | (516 | ) | (611 | ) | ||||||||
FFO available to common shareholders (1) | $ | 55,891 | $ | 59,349 | $ | 48,669 | $ | 55,891 | ||||||||
FFO available to common shareholders per share - diluted (1) | $ | 0.57 | $ | 0.60 | $ | 0.50 | $ | 0.57 | ||||||||
Weighted Average Shares: | ||||||||||||||||
Basic weighted average common shares | 93,303 | 93,644 | 92,500 | 93,303 | ||||||||||||
Diluted weighted average common shares (for earnings per share computations) | 93,303 | 93,644 | 92,500 | 93,303 | ||||||||||||
Exchangeable operating partnership units | 4,961 | 4,996 | 4,911 | 4,961 | ||||||||||||
Diluted weighted average common shares (for FFO per share computations) (1) | 98,264 | 98,640 | 97,411 | 98,264 |
(1) | Assumes the Class A common limited partnership units of the Operating Partnership held by the noncontrolling interests are exchanged for common shares of the Company. Each Class A common limited partnership unit is exchangeable for one of the |
Three months ended | Three months ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2019 | 2018 | 2020 | 2019 | |||||||||||||
Net income | $ | 65,841 | $ | 23,685 | ||||||||||||
Net income (loss) | $ | (28,119 | ) | $ | 65,841 | |||||||||||
Adjusted to exclude: | ||||||||||||||||
Equity in earnings of unconsolidated joint ventures | (1,629 | ) | (2,194 | ) | (1,527 | ) | (1,629 | ) | ||||||||
Interest expense | 16,307 | 15,800 | 15,196 | 16,307 | ||||||||||||
Gain on sale of assets | (43,422 | ) | — | — | (43,422 | ) | ||||||||||
Other non-operating income | (224 | ) | (209 | ) | (220 | ) | (224 | ) | ||||||||
Impairment charge | 45,675 | — | ||||||||||||||
Depreciation and amortization | 31,760 | 33,123 | 29,417 | 31,760 | ||||||||||||
Other non-property expense | 161 | 388 | 139 | 150 | ||||||||||||
Corporate general and administrative expenses | 12,118 | 10,754 | 12,579 | 12,132 | ||||||||||||
Non-cash adjustments(1) | (1,472 | ) | (1,367 | ) | (1,502 | ) | (1,472 | ) | ||||||||
Lease termination fees | (1,130 | ) | (1,051 | ) | (164 | ) | (1,130 | ) | ||||||||
Portfolio NOI | 78,310 | 78,929 | 71,474 | 78,313 | ||||||||||||
Non-same center NOI(2) | (4,084 | ) | (4,367 | ) | — | (4,081 | ) | |||||||||
Same Center NOI | $ | 74,226 | $ | 74,562 | $ | 71,474 | $ | 74,232 |
(1) | Non-cash items include straight-line rent, above and below market rent amortization, straight-line rent expense on land leases and gains or losses on outparcel sales, as applicable. |
(2) | Excluded from Same Center NOI: |
Outlet centers sold: | |
Nags Head, Ocean City, Park City, and Williamsburg | March 2019 |
Three months ended | ||||||||
March 31, | March 31, | |||||||
2020 | 2019 | |||||||
Net income (loss) | $ | (28,119 | ) | $ | 65,841 | |||
Adjusted to exclude: | ||||||||
Interest expense | 15,196 | 16,307 | ||||||
Depreciation and amortization | 29,417 | 31,760 | ||||||
Impairment charge - consolidated | 45,675 | — | ||||||
Gain on sale of assets | — | (43,422 | ) | |||||
Adjusted EBITDA | $ | 62,169 | $ | 70,486 |
Three months ended | ||||||||
March 31, | March 31, | |||||||
2020 | 2019 | |||||||
Net income (loss) | $ | (28,119 | ) | $ | 65,841 | |||
Adjusted to exclude: | ||||||||
Interest expense | 15,196 | 16,307 | ||||||
Depreciation and amortization | 29,417 | 31,760 | ||||||
Impairment charge - consolidated | 45,675 | — | ||||||
Gain on sale of assets | — | (43,422 | ) | |||||
Pro-rata share of interest expense - unconsolidated joint ventures | 1,867 | 2,067 | ||||||
Pro-rata share of depreciation and amortization - unconsolidated joint ventures | 3,018 | 3,129 | ||||||
EBITDAre | $ | 67,054 | $ | 75,682 |
March 31, 2019 | December 31, 2018 | March 31, 2020 | December 31, 2019 | |||||||||||||
Fair value of debt | $ | 1,568,771 | $ | 1,668,475 | $ | 2,181,170 | $ | 1,603,814 | ||||||||
Recorded value of debt | $ | 1,582,784 | $ | 1,712,918 | $ | 2,167,554 | $ | 1,569,773 |
Period | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs | Approximate dollar value of shares that may yet be purchased under the plans or programs (in millions) | ||||||||||
January 1, 2019 to January 31, 2019 | — | $ | — | — | $ | 55.7 | ||||||||
February 1, 2019 to February 28, 2019 | — | — | — | 100.0 | ||||||||||
March 1, 2019 to March 31, 2019 | — | — | — | 100.0 | ||||||||||
Total | — | $ | — | — | $ | 100.0 |
Exhibit Number | Exhibit Descriptions | ||
10.1 | |||
10.3 | |||
10.4 | |||
10.5* | |||
31.1* | |||
31.2* | |||
31.3* | |||
31.4* | |||
32.1** | |||
32.2** | |||
32.3** | |||
32.4** | |||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | ||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | ||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||
104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | ||
* Filed herewith. | |||
** Furnished herewith. | |||
TANGER FACTORY OUTLET CENTERS, INC. | |
By: | /s/ James F. Williams |
James F. Williams | |
Executive Vice President and Chief Financial Officer | |
TANGER PROPERTIES LIMITED PARTNERSHIP | |
By: TANGER GP TRUST, its sole general partner | |
By: | /s/ James F. Williams |
James F. Williams | |
Vice President and Treasurer (Principal Financial Officer) |