Tanger Factory Outlet Centers, Inc.
Supplemental Operating and Financial Data
September 30, 2008
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, 2007.
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.
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 September 30, 2008 | 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 | 17 | ||||
| Senior Unsecured Notes Financial Covenants | 17 | ||||
| Future Scheduled Principal Payments | 18 | ||||
| Investor Information | 19 | ||||
Geographic Diversification
| As of September 30, 2008 | |||
State | # of Centers | GLA | % of GLA |
| South Carolina | 3 | 1,171,826 | 13% |
| Georgia | 3 | 826,643 | 9% |
| New York | 1 | 729,315 | 8% |
| Pennsylvania | 2 | 625,678 | 7% |
| Texas | 2 | 619,806 | 7% |
| Delaware | 1 | 568,869 | 7% |
| Alabama | 1 | 557,185 | 6% |
| Michigan | 2 | 436,751 | 5% |
| Tennessee | 1 | 419,038 | 5% |
| Missouri | 1 | 302,992 | 4% |
| Utah | 1 | 300,891 | 4% |
| Connecticut | 1 | 291,051 | 3% |
| Louisiana | 1 | 282,403 | 3% |
| Iowa | 1 | 277,230 | 3% |
| Oregon | 1 | 270,280 | 3% |
| Illinois | 1 | 256,514 | 3% |
| New Hampshire | 1 | 245,563 | 3% |
| Florida | 1 | 198,950 | 2% |
| North Carolina | 2 | 186,413 | 2% |
| California | 1 | 171,300 | 2% |
| Maine | 2 | 84,313 | 1% |
| Total (1) | 30 | 8,823,011 | 100% |
| (1) | Excludes one 402,442 square foot center in Myrtle Beach, SC and one 264,929 square foot center in Wisconsin Dells, WI, of which Tanger owns 50% interest in through joint venture arrangements. |
Property Summary – Occupancy at End of Each Period Shown
Wholly-owned properties
Location | Total GLA 9/30/08 | % Occupied 9/30/08 | % Occupied 6/30/08 | % Occupied 3/31/008 | % Occupied 12/31/07 | % Occupied 9/30/07 |
| Riverhead, NY | 729,315 | 99% | 99% | 94% | 100% | 98% |
| Rehoboth, DE | 568,869 | 100% | 99% | 97% | 99% | 98% |
| Foley, AL | 557,185 | 94% | 93% | 94% | 97% | 99% |
| San Marcos, TX | 442,006 | 99% | 97% | 96% | 99% | 99% |
| Myrtle Beach Hwy 501, SC | 426,417 | 92% | 96% | 94% | 94% | 96% |
| Sevierville, TN | 419,038 | 100% | 100% | 99% | 100% | 99% |
| Hilton Head, SC | 393,094 | 88% | 88% | 87% | 89% | 87% |
| Washington, PA | 370,526 | 86% | n/a | n/a | n/a | n/a |
| Charleston, SC | 352,315 | 95% | 95% | 94% | 95% | 94% |
| Commerce II, GA | 347,025 | 98% | 98% | 98% | 100% | 98% |
| Howell, MI | 324,631 | 97% | 97% | 93% | 100% | 99% |
| Branson, MO | 302,992 | 100% | 98% | 93% | 100% | 100% |
| Park City, UT | 300,891 | 98% | 92% | 93% | 100% | 100% |
| Locust Grove, GA | 293,868 | 100% | 100% | 96% | 99% | 100% |
| Westbrook, CT | 291,051 | 99% | 99% | 98% | 100% | 99% |
| Gonzales, LA | 282,403 | 100% | 100% | 99% | 100% | 100% |
| Williamsburg, IA | 277,230 | 100% | 99% | 99% | 99% | 99% |
| Lincoln City, OR | 270,280 | 100% | 99% | 98% | 100% | 99% |
| Tuscola, IL | 256,514 | 80% | 82% | 84% | 80% | 77% |
| Lancaster, PA | 255,152 | 100% | 98% | 100% | 100% | 100% |
| Tilton, NH | 245,563 | 100% | 100% | 100% | 100% | 100% |
| Fort Myers, FL | 198,950 | 92% | 93% | 98% | 94% | 96% |
| Commerce I, GA | 185,750 | 72% | 72% | 76% | 91% | 90% |
| Terrell, TX | 177,800 | 100% | 100% | 100% | 100% | 100% |
| Barstow, CA | 171,300 | 100% | 99% | 100% | 97% | 100% |
| West Branch, MI | 112,120 | 100% | 100% | 100% | 100% | 100% |
| Blowing Rock, NC | 104,235 | 100% | 100% | 98% | 100% | 98% |
| Nags Head, NC | 82,178 | 100% | 100% | 100% | 100% | 100% |
| Kittery I, ME | 59,694 | 100% | 100% | 100% | 100% | 95% |
| Kittery II, ME | 24,619 | 100% | 100% | 94% | 94% | 94% |
| Boaz, AL | n/a | n/a | n/a | n/a | n/a | 98% |
| Total | 8,823,011 | 97% (2) | 96% | 95% | 98% | 97% (1) |
Unconsolidated joint ventures
| Myrtle Beach Hwy 17, SC | 402,442 | 100% | 99% | 100% | 100% | 99% |
| Wisconsin Dells, WI | 264,929 | 99% | 100% | 100% | 100% | 100% |
| (1) | Excludes the occupancy rate at our Charleston, South Carolina center which opened during the third quarter of 2006 and had not yet stabilized. |
| (2) | Excludes the occupancy rate at our Washington, Pennsylvania center which opened during the third quarter of 2008 and had not yet stabilized. |
Portfolio Occupancy at the End of Each Period (1)
09/08(3) 06/08 03/08 12/07 09/07(2) 06/07(2) 03/07(2) 12/06(2) 09/06(2)
97% 96% 95% 98% 97% 97% 95% 98% 96%
97% 96% 95% 98% 97% 97% 95% 98% 96%
| (1) | Excludes one 402,442 square foot center in Myrtle Beach, SC and one 264,929 square foot center in Wisconsin Dells, WI, of which Tanger owns 50% interest in through joint venture arrangements. |
| (2) | Excludes the occupancy rate at our Charleston, South Carolina center which opened during the third quarter of 2006 and had not yet stabilized. |
(3) | Excludes the occupancy rate at our Washington, Pennsylvania center which opened during the third quarter of 2008 and had not yet stabilized. |
Major Tenants (1)
| Ten Largest Tenants As of September 30, 2008 | |||
Tenant | # of Stores | GLA | % of Total GLA |
| The Gap, Inc. | 68 | 731,308 | 8.3% |
| Phillips-Van Heusen | 97 | 451,111 | 5.1% |
| Nike | 25 | 290,105 | 3.3% |
| Adidas | 33 | 283,732 | 3.2% |
| VF Factory Outlet | 31 | 278,286 | 3.2% |
| Liz Claiborne | 33 | 254,210 | 2.9% |
| Dress Barn, Inc. | 38 | 251,222 | 2.8% |
| Carter’s | 46 | 221,951 | 2.5% |
| Jones Retail Corporation | 49 | 194,994 | 2.2% |
| Polo Ralph Lauren | 22 | 188,728 | 2.2% |
| Total of All Listed Above | 442 | 3,145,647 | 35.7% |
(1) | Excludes one 402,442 square foot center in Myrtle Beach, SC and one 264,929 square foot center in Wisconsin Dells, WI, of which Tanger owns 50% interest in through joint venture arrangements. |
Lease Expirations as of September 30, 2008
Percentage of Total Gross Leasable Area (1)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018+
1.00% 15.00% 16.00% 18.00% 16.00% 17.00% 4.00% 2.00% 2.00% 3.00% 6.00%
1.00% 15.00% 16.00% 18.00% 16.00% 17.00% 4.00% 2.00% 2.00% 3.00% 6.00%
Percentage of Total Annualized Base Rent (1)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018+
1.00% 13.00% 16.00% 16.00% 16.00% 18.00% 4.00% 2.00% 2.00% 4.00% 8.00%
1.00% 13.00% 16.00% 16.00% 16.00% 18.00% 4.00% 2.00% 2.00% 4.00% 8.00%
| (1) | Excludes one 402,442 square foot center in Myrtle Beach, SC and one 264,929 square foot center in Wisconsin Dells, WI, of which Tanger owns 50% interest in through joint venture arrangements. |
Leasing Activity (1)
03/31/08 | 06/30/08 | 09/30/08 | 12/31/08 | Year to Date | Prior Year to Date | |
| Re-tenanted Space: | ||||||
| Number of leases | 73 | 29 | 17 | 119 | 166 | |
| Gross leasable area | 279,014 | 124,254 | 77,426 | 480,694 | 598,717 | |
| New initial base rent per square foot | $23.03 | $26.20 | $26.11 | $24.35 | $21.42 | |
| Prior expiring base rent per square foot | $17.67 | $19.13 | $19.37 | $18.32 | $16.65 | |
| Percent increase | 30.4% | 36.9% | 34.8% | 32.9% | 28.7% | |
| New straight line base rent per square foot | $24.41 | $27.62 | $28.04 | $25.83 | $22.46 | |
| Prior straight line base rent per square foot | $17.23 | $18.90 | $19.08 | $17.96 | $16.33 | |
| Percent increase | 41.7% | 46.1% | 47.0% | 43.8% | 37.6% | |
| Renewed Space: | ||||||
| Number of leases | 166 | 50 | 16 | 232 | 248 | |
| Gross leasable area | 800,197 | 184,007 | 55,642 | 1,039,846 | 1,126,879 | |
| New initial base rent per square foot | $19.37 | $20.05 | $21.66 | $19.62 | $17.76 | |
| Prior expiring base rent per square foot | $16.94 | $17.50 | $20.56 | $17.24 | $16.11 | |
| Percent increase | 14.3% | 14.6% | 5.4% | 13.8% | 10.2% | |
| New straight line base rent per square foot | $20.04 | $20.57 | $21.98 | $20.24 | $18.03 | |
| Prior straight line base rent per square foot | $16.99 | $17.17 | $20.30 | $17.20 | $15.93 | |
| Percent increase | 17.9% | 19.8% | 8.3% | 17.6% | 13.2% | |
| Total Re-tenanted and Renewed Space: | ||||||
| Number of leases | 239 | 79 | 33 | 351 | 414 | |
| Gross leasable area | 1,079,211 | 308,261 | 133,068 | 1,520,540 | 1,725,596 | |
| New initial base rent per square foot | $20.32 | $22.53 | $24.25 | $21.11 | $19.03 | |
| Prior expiring base rent per square foot | $17.13 | $18.16 | $19.87 | $17.58 | $16.30 | |
| Percent increase | 18.6% | 24.1% | 22.1% | 20.1% | 16.8% | |
| New straight line base rent per square foot | $21.17 | $23.41 | $25.51 | $22.00 | $19.57 | |
| Prior straight line base rent per square foot | $17.05 | $17.87 | $19.59 | $17.44 | $16.07 | |
| Percent increase | 24.1% | 31.0% | 30.2% | 26.2% | 21.8% |
| (1) | Excludes one 402,442 square foot center in Myrtle Beach, SC and one 264,929 square foot center in Wisconsin Dells, WI, of which Tanger owns 50% interest in through joint venture arrangements. |
Consolidated Balance Sheets (dollars in thousands)
| 9/30/08 | 6/30/08 | 3/31/08 | 12/31/07 | 9/30/07 | ||
| Assets | ||||||
| Rental property | ||||||
| Land | $135,688 | $130,077 | $130,077 | $130,075 | $129,921 | |
| Buildings | 1,233,680 | 1,130,536 | 1,127,956 | 1,104,459 | 1,074,310 | |
| Construction in progress | 16,377 | 90,430 | 53,036 | 52,603 | 61,364 | |
| Total rental property | 1,385,745 | 1,351,043 | 1,311,069 | 1,287,137 | 1,265,595 | |
| Accumulated depreciation | (345,577) | (333,995) | (323,520) | (312,638) | (302,411) | |
| Total rental property – net | 1,040,168 | 1,017,048 | 987,549 | 974,499 | 963,184 | |
| Cash & cash equivalents | 3,753 | 1,088 | 2,302 | 2,412 | 2,434 | |
| Assets held for sale | -- | -- | -- | -- | 2,052 | |
| Investments in unconsolidated jointventures | 12,145 | 11,667 | 9,193 | 10,695 | 11,908 | |
| Deferred charges – net | 39,854 | 41,821 | 42,302 | 44,804 | 47,306 | |
| Other assets | 28,811 | 28,097 | 31,698 | 27,870 | 26,563 | |
| Total assets | $1,124,731 | $1,099,721 | $1,073,044 | $1,060,280 | $1,053,447 | |
| Liabilities, minority interest & shareholders’ equity | ||||||
| Liabilities | ||||||
| Debt | ||||||
| Senior, unsecured notes, net of discount | $398,799 | $398,779 | $398,760 | $498,741 | $498,722 | |
| Unsecured term loan | 235,000 | 235,000 | --- | --- | --- | |
| Mortgages payable, including premium | --- | --- | 172,121 | 173,724 | 175,312 | |
| Unsecured lines of credit | 149,500 | 128,300 | 156,900 | 33,880 | 23,300 | |
| Total debt | 783,299 | 762,079 | 727,781 | 706,345 | 697,334 | |
| Construction trade payables | 22,840 | 28,393 | 23,780 | 23,813 | 27,943 | |
| Accounts payable & accruals | 46,573 | 34,831 | 54,203 | 47,185 | 35,237 | |
| Total liabilities | 852,712 | 825,303 | 805,764 | 777,343 | 760,514 | |
| Minority interest in operating partnership | 31,678 | 32,102 | 31,019 | 33,733 | 35,366 | |
| Shareholders’ equity | ||||||
| Preferred shares | 75,000 | 75,000 | 75,000 | 75,000 | 75,000 | |
| Common shares | 317 | 316 | 315 | 313 | 313 | |
| Paid in capital | 357,698 | 355,733 | 353,237 | 351,817 | 350,701 | |
| Distributions in excess of net income | (192,601) | (189,458) | (177,353) | (171,625) | (169,419) | |
| Accum. other comprehensive income (loss) | (73) | 725 | (14,938) | (6,301) | 972 | |
| Total shareholders’ equity | 240,341 | 242,316 | 236,261 | 249,204 | 257,567 | |
| Total liabilities, minority interest & shareholders’ equity | $1,124,731 | $1,099,721 | $1,073,044 | $1,060,280 | $1,053,447 | |
Consolidated Statements of Operations (dollars and shares in thousands)
| Three Months Ended | YTD | |||||||||||||||||||||||||||
| 09/08 | 06/08 | 03/08 | 12/07 | 09/07 | 09/08 | 09/07 | ||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||||
| Base rentals | $ | 40,519 | $ | 38,623 | $ | 37,232 | $ | 38,210 | $ | 37,207 | $ | 116,374 | $ | 108,614 | ||||||||||||||
| Percentage rentals | 1,811 | 1,120 | 1,178 | 3,323 | 2,305 | 4,109 | 5,434 | |||||||||||||||||||||
| Expense reimbursements | 18,277 | 15,692 | 17,478 | 18,482 | 16,719 | 51,447 | 47,496 | |||||||||||||||||||||
| Other income | 2,166 | 1,570 | 1,388 | 1,963 | 2,155 | 5,124 | 5,243 | |||||||||||||||||||||
| Total revenues | 62,773 | 57,005 | 57,276 | 61,978 | 58,386 | 177,054 | 166,787 | |||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||||
| Property operating | 20,678 | 17,525 | 19,219 | 20,490 | 19,158 | 57,422 | 53,893 | |||||||||||||||||||||
| General & administrative | 6,217 | 5,677 | 5,271 | 4,911 | 4,916 | 17,165 | 14,096 | |||||||||||||||||||||
| Depreciation & amortization | 15,320 | 14,690 | 15,583 | 14,940 | 14,941 | 45,593 | 48,870 | |||||||||||||||||||||
| Total expenses | 42,215 | 37,892 | 40,073 | 40,341 | 39,015 | 120,180 | 116,859 | |||||||||||||||||||||
| Operating income | 20,558 | 19,113 | 17,203 | 21,637 | 19,371 | 56,874 | 49,928 | |||||||||||||||||||||
| Interest expense | 9,147 | 9,496 | 9,548 | 9,851 | 10,087 | 28,191 | 30,215 | |||||||||||||||||||||
| Loss on settlement of US treasury rate locks | --- | 8,910 | --- | --- | --- | 8,910 | --- | |||||||||||||||||||||
Income before equity in earnings of unconsolidated joint ventures, minority interest and discontinued operations | 11,411 | 707 | 7,655 | 11,786 | 9,284 | 19,773 | 19,713 | |||||||||||||||||||||
Equity in earnings of unconsolidated joint ventures | 596 | 558 | 394 | 443 | 461 | 1,548 | 1,030 | |||||||||||||||||||||
| Minority interest in operating partnership | (1,729 | ) | 23 | (1,088 | ) | (1,778 | ) | (1,370 | ) | (2,794 | ) | (2,716 | ) | |||||||||||||||
| Income from continuing operations | 10,278 | 1,288 | 6,961 | 10,451 | 8,375 | 18,527 | 18,027 | |||||||||||||||||||||
Discontinued operations (1) | --- | --- | --- | 22 | 22 | --- | 76 | |||||||||||||||||||||
| Net income | 10,278 | 1,288 | 6,961 | 10,473 | 8,397 | 18,527 | 18,103 | |||||||||||||||||||||
| Less applicable preferred share dividends | (1,406 | ) | (1,407 | ) | (1,406 | ) | (1,406 | ) | (1,406 | ) | (4,219 | ) | (4,219 | ) | ||||||||||||||
Net income (loss) available to common shareholders | $ | 8,872 | $ | (119 | ) | $ | 5,555 | $ | 9,067 | $ | 6,991 | $ | 14,308 | $ | 13,884 | |||||||||||||
| Basic earnings per common share: | ||||||||||||||||||||||||||||
| Income (loss) from continuing operations | $ | .29 | $ | --- | $ | .18 | $ | .29 | $ | .23 | $ | .46 | $ | .45 | ||||||||||||||
| Net income (loss) | $ | .29 | $ | --- | $ | .18 | $ | .29 | $ | .23 | $ | .46 | $ | .45 | ||||||||||||||
| Diluted earnings per common share: | ||||||||||||||||||||||||||||
| Income (loss) from continuing operations | $ | .28 | $ | --- | $ | .18 | $ | .29 | $ | .22 | $ | .45 | $ | .44 | ||||||||||||||
| Net income (loss) | $ | .28 | $ | --- | $ | .18 | $ | .29 | $ | .22 | $ | .45 | $ | .44 | ||||||||||||||
| Weighted average common shares: | ||||||||||||||||||||||||||||
| Basic | 31,129 | 31,068 | 30,979 | 30,867 | 30,847 | 31,059 | 30,805 | |||||||||||||||||||||
| Diluted | 31,871 | 31,548 | 31,336 | 31,725 | 31,400 | 31,833 | 31,401 | |||||||||||||||||||||
| (1) | In accordance with SFAS No. 144 “Accounting for the Impairment or Disposal of Long Lived Assets”, the results of operations for properties sold for which we have no significant continuing involvement, including any gain or loss on such sales, and properties classified as assets held for sale, have been reported above as discontinued operations for both the current and prior periods presented. |
FFO and FAD Analysis (dollars and shares in thousands)
| Three Months Ended | YTD | |||||||||||||||||||||||||||
| 09/08 | 06/08 | 03/08 | 12/07 | 09/07 | 09/08 | 09/07 | ||||||||||||||||||||||
| Funds from operations: | ||||||||||||||||||||||||||||
| Net income | $ | 10,278 | $ | 1,288 | $ | 6,961 | $ | 10,473 | $ | 8,397 | $ | 18,527 | $ | 18,103 | ||||||||||||||
| Adjusted for - | ||||||||||||||||||||||||||||
Minority interest in operating partnership | 1,729 | (23 | ) | 1,088 | 1,778 | 1,370 | 2,794 | 2,716 | ||||||||||||||||||||
Minority interest, depreciation and amortization in discontinued operations | -- | -- | -- | 5 | 52 | -- | 160 | |||||||||||||||||||||
Depreciation and amortization uniquely significant to real estate – wholly owned | 15,219 | 14,608 | 15,508 | 14,865 | 14,865 | 45,335 | 48,641 | |||||||||||||||||||||
Depreciation and amortization uniquely significant to real estate – joint ventures | 635 | 651 | 652 | 626 | 651 | 1,938 | 1,985 | |||||||||||||||||||||
| (Gain) on sale of real estate | -- | -- | -- | (6 | ) | -- | -- | -- | ||||||||||||||||||||
| Preferred share dividends | (1,406 | ) | (1,407 | ) | (1,406 | ) | (1,406 | ) | (1,406 | ) | (4,219 | ) | (4,219 | ) | ||||||||||||||
| Funds from operations | $ | 26,455 | $ | 15,117 | $ | 22,803 | $ | 26,335 | $ | 23,929 | $ | 64,375 | $ | 67,386 | ||||||||||||||
| Funds from operations per share | $ | .70 | $ | .40 | $ | .61 | $ | .70 | $ | .64 | $ | 1.70 | $ | 1.80 | ||||||||||||||
| Funds available for distribution: | ||||||||||||||||||||||||||||
| Funds from operations | $ | 26,455 | $ | 15,117 | $ | 22,803 | $ | 26,335 | $ | 23,929 | $ | 64,375 | $ | 67,386 | ||||||||||||||
| Adjusted For - | ||||||||||||||||||||||||||||
Corporate depreciation excluded above | 101 | 82 | 75 | 75 | 76 | 258 | 229 | |||||||||||||||||||||
| Amortization of finance costs | 462 | 371 | 379 | 430 | 473 | 1,212 | 1,308 | |||||||||||||||||||||
Loss on termination of US treasury lock derivatives | -- | 8,910 | -- | -- | -- | 8,910 | -- | |||||||||||||||||||||
| Amortization of share compensation | 1,404 | 1,396 | 1,224 | 1,103 | 1,067 | 4,024 | 2,956 | |||||||||||||||||||||
| Straight line rent adjustment | (822 | ) | (1,085 | ) | (789 | ) | (562 | ) | (753 | ) | (2,696 | ) | (2,306 | ) | ||||||||||||||
| Market rent adjustment | (135 | ) | (198 | ) | 105 | (270 | ) | (277 | ) | (228 | ) | (877 | ) | |||||||||||||||
| Market rate interest adjustment | -- | (438 | ) | (608 | ) | (609 | ) | (605 | ) | (1,046 | ) | (1,787 | ) | |||||||||||||||
2nd generation tenant allowances | (3,088 | ) | (2,701 | ) | (4,177 | ) | (4,247 | ) | (3,268 | ) | (9,966 | ) | (14,629 | ) | ||||||||||||||
| Capital improvements | (12,062 | ) | (9,500 | ) | (2,549 | ) | (3,076 | ) | (579 | ) | (24,111 | ) | (4,647 | ) | ||||||||||||||
| Funds available for distribution | $ | 12,315 | $ | 11,954 | $ | 16,463 | $ | 19,179 | $ | 20,063 | $ | 40,732 | $ | 47,633 | ||||||||||||||
Funds available for distribution per share | $ | .32 | $ | .32 | $ | .44 | $ | .51 | $ | .54 | $ | 1.07 | $ | 1.27 | ||||||||||||||
| Dividends paid per share | $ | .38 | $ | .38 | $ | .36 | $ | .36 | $ | .36 | $ | 1.12 | $ | 1.06 | ||||||||||||||
| FFO payout ratio | 54 | % | 95 | % | 59 | % | 51 | % | 56 | % | 100 | % | 59 | % | ||||||||||||||
| FAD payout ratio | 119 | % | 119 | % | 82 | % | 71 | % | 67 | % | 104 | % | 83 | % | ||||||||||||||
| Diluted weighted average common shs. | 37,938 | 37,615 | 37,403 | 37,792 | 37,467 | 37,900 | 37,468 | |||||||||||||||||||||
Unconsolidated Joint Venture Information – All
Summary Balance Sheets (dollars in thousands)
9/30/08 | 6/30/08 | 3/31/08 | 12/31/07 | 9/30/07 | Tanger’s Share as of 9/30/08 | ||
| Assets | |||||||
| Investment properties at cost – net | $72,118 | $73,033 | $70,541 | $71,022 | $72,200 | $35,486 | |
| Construction in progress | 226,031 | 181,246 | 134,756 | 103,568 | 81,638 | 75,344 | |
| Cash and cash equivalents | 4,104 | 3,896 | 2,708 | 2,282 | 4,109 | 1,862 | |
| Deferred charges – net | 6,041 | 6,184 | 2,157 | 2,092 | 2,746 | $2,217 | |
| Other assets | 7,853 | 7,894 | 8,613 | 8,425 | 9,305 | 3,087 | |
| Total assets | $316,147 | $272,253 | $218,775 | $187,389 | $169,998 | $117,996 | |
| Liabilities & Owners’ Equity | |||||||
| Mortgage payable | $259,789 | $215,028 | $173,249 | $148,321 | $128,886 | $96,771 | |
| Construction trade payables | 26,750 | 28,129 | 20,736 | 13,052 | 14,128 | 9,066 | |
| Accounts payable & other liabilities | 6,845 | 7,117 | 9,281 | 6,377 | 3,915 | 2,700 | |
| Total liabilities | 293,384 | 250,274 | 203,266 | 167,750 | 146,929 | 108,537 | |
| Owners’ equity | 22,763 | 21,979 | 15,509 | 19,639 | 23,069 | 9,459 | |
| Total liabilities & owners’ equity | $316,147 | $272,253 | $218,775 | $187,389 | $169,998 | $117,996 |
Summary Statements of Operations (dollars in thousands)
| Three Months Ended | YTD | ||||||
| 09/08 | 06/08 | 03/08 | 12/07 | 09/07 | 09/08 | 09/07 | |
| Revenues | $5,582 | $5,031 | $4,757 | $5,049 | $4,949 | $15,370 | $14,365 |
| Expenses | |||||||
| Property operating | 2,128 | 1,720 | 1,802 | 1,891 | 1,643 | 5,650 | 5,003 |
| General & administrative | 90 | 79 | 19 | 29 | 60 | 188 | 219 |
| Depreciation & amortization | 1,302 | 1,344 | 1,345 | 1,354 | 1,353 | 3,991 | 4,119 |
| Total expenses | 3,520 | 3,143 | 3,166 | 3,274 | 3,056 | 9,829 | 9,341 |
| Operating income | 2,062 | 1,888 | 1,591 | 1,775 | 1,893 | 5,541 | 5,024 |
| Interest expense | 932 | 820 | 840 | 987 | 1,025 | 2,592 | 3,142 |
| Net income | $1,130 | $1,068 | $751 | $788 | $868 | $2,949 | $1,882 |
| Tanger’s share of: | |||||||
Total revenues less property operating and general & administrative expenses (“NOI”) | $1,692 | $1,617 | $1,466 | $1,563 | $1,625 | $4,775 | $4,586 |
| Net income | $ 596 | $ 558 | $ 394 | $ 443 | $ 461 | $1,548 | $1,030 |
| Depreciation (real estate related) | $ 635 | $ 651 | $ 652 | $ 626 | $ 651 | $1,938 | $1,985 |
Unconsolidated Joint Venture Information – Myrtle Beach Hwy 17
Summary Balance Sheets (dollars in thousands)
9/30/08 | 6/30/08 | 3/31/08 | 12/31/07 | 9/30/07 | Tanger’s Share as of 9/30/08 | ||
| Assets | |||||||
| Investment properties at cost – net | $34,249 | $34,644 | $34,985 | $34,909 | $35,541 | $17,125 | |
| Cash and cash equivalents | 1,753 | 1,369 | 1,036 | 1,265 | 1,501 | 877 | |
| Deferred charges – net | 644 | 644 | 724 | 799 | 896 | 322 | |
| Other assets | 2,232 | 2,335 | 2,264 | 2,229 | 2,243 | 1,116 | |
| Total assets | $38,878 | $38,992 | $39,009 | $39,202 | $40,181 | $19,440 | |
| Liabilities & Owners’ Equity | |||||||
| Mortgage payable | $35,800 | $35,800 | $35,800 | $35,800 | $35,800 | $17,900 | |
| Construction trade payables | 891 | 944 | 732 | 277 | 426 | 446 | |
| Accounts payable & other liabilities | 1,777 | 1,626 | 2,272 | 1,491 | 841 | 889 | |
| Total liabilities | 38,468 | 38,370 | 38,804 | 37,568 | 37,067 | 19,235 | |
| Owners’ equity | 410 | 622 | 205 | 1,634 | 3,114 | 205 | |
| Total liabilities & owners’ equity | $38,878 | $38,992 | $39,009 | $39,202 | $40,181 | $19,440 |
Summary Statements of Operations (dollars in thousands)
| Three Months Ended | YTD | ||||||
| 09/08 | 06/08 | 03/08 | 12/07 | 09/07 | 09/08 | 09/07 | |
| Revenues | $3,229 | $3,194 | $2,888 | $3,033 | $3,208 | $9,311 | $8,972 |
| Expenses | |||||||
| Property operating | 1,122 | 1,101 | 1,090 | 1,135 | 1,174 | 3,313 | 3,297 |
| General & administrative | 4 | 27 | 7 | 2 | 3 | 38 | 31 |
| Depreciation & amortization | 672 | 733 | 739 | 751 | 753 | 2,144 | 2,377 |
| Total expenses | 1,798 | 1,861 | 1,836 | 1,888 | 1,930 | 5,495 | 5,705 |
| Operating income | 1,431 | 1,333 | 1,052 | 1,145 | 1,278 | 3,816 | 3,267 |
| Interest expense | 636 | 543 | 501 | 559 | 566 | 1,680 | 1,672 |
| Net income | $795 | $790 | $551 | $586 | $712 | $2,136 | $1,595 |
| Tanger’s share of: | |||||||
Total revenues less property operating and general & administrative expenses (“NOI”) | $1,051 | $1,033 | $896 | $948 | $1,014 | $2,980 | $2,821 |
| Net income | $ 400 | $ 406 | $285 | $334 | $ 371 | $1,091 | $ 841 |
| Depreciation (real estate related) | $ 333 | $ 356 | $360 | $335 | $ 361 | $1,049 | $1,146 |
Unconsolidated Joint Venture Information – Wisconsin Dells
Summary Balance Sheets (dollars in thousands)
09/30/08 | 06/30/08 | 3/31/08 | 12/31/07 | 09/30/07 | Tanger’s Share as of 09/30/08 | ||
| Assets | |||||||
| Investment properties at cost - net | $34,426 | $34,965 | $35,556 | $36,113 | $36,659 | $17,213 | |
| Cash and cash equivalents | 1,210 | 676 | 277 | 525 | 396 | 605 | |
| Deferred charges – net | 575 | 640 | 706 | 771 | 836 | 288 | |
| Other assets | 582 | 731 | 860 | 792 | 506 | 291 | |
| Total assets | $36,793 | $37,012 | $37,399 | $38,201 | $38,397 | $18,397 | |
| Liabilities & Owners’ Equity | |||||||
| Mortgage payable | $25,250 | $25,250 | $25,250 | $25,250 | $25,250 | $12,625 | |
| Construction trade payables | -- | -- | 158 | 186 | 206 | -- | |
| Accounts payable & other liabilities | 725 | 727 | 591 | 874 | 517 | 363 | |
| Total liabilities | 25,975 | 25,977 | 25,999 | 26,310 | 25,973 | 12,988 | |
| Owners’ equity | 10,818 | 11,035 | 11,400 | 11,891 | 12,424 | 5,409 | |
| Total liabilities & owners’ equity | $36,793 | $37,012 | $37,399 | $38,201 | $38,397 | $18,397 |
Summary Statements of Operations (dollars in thousands)
| Three Months Ended | YTD | ||||||
| 09/08 | 06/08 | 03/08 | 12/07 | 09/07 | 09/08 | 09/07 | |
| Revenues | $1,903 | $1,795 | $1,848 | $1,977 | $1,704 | $5,546 | $5,337 |
| Expenses | |||||||
| Property operating | 582 | 615 | 712 | 756 | 469 | 1,909 | 1,706 |
| General & administrative | 2 | 6 | 3 | 3 | 5 | 11 | 41 |
| Depreciation & amortization | 610 | 607 | 606 | 603 | 600 | 1,823 | 1,742 |
| Total expenses | 1,194 | 1,228 | 1,321 | 1,362 | 1,074 | 3,743 | 3,489 |
| Operating income | 709 | 567 | 527 | 615 | 630 | 1,803 | 1,848 |
| Interest expense | 266 | 271 | 339 | 428 | 459 | 876 | 1,470 |
| Net income | $443 | $296 | $188 | $187 | $171 | $927 | $378 |
| Tanger’s share of: | |||||||
Total revenues less property operating and general & administrative expenses (“NOI”) | $659 | $587 | $567 | $609 | $614 | $1,813 | $1,795 |
| Net income | $232 | $158 | $105 | $105 | $95 | $495 | $220 |
| Depreciation (real estate related) | $295 | $294 | $292 | $291 | $290 | $881 | $840 |
Unconsolidated Joint Venture Information – Deer Park
Summary Balance Sheets (dollars in thousands)
09/30/08 | 06/30/08 | 03/31/08 | 12/31/07 | 09/30/07 | Tanger’s Share as of 09/30/08 | ||
| Assets | |||||||
| Investment properties at cost - net | $ 3,443 | $ 3,424 | -- | -- | -- | $ 1,148 | |
| Construction in progress | 226,031 | 181,246 | $134,756 | $103,568 | $81,638 | 75,344 | |
| Cash and cash equivalents | 1,141 | 1,851 | 1,395 | 492 | 2,212 | 380 | |
| Deferred charges – net | 4,822 | 4,900 | 727 | 522 | 1,014 | 1,607 | |
| Other assets | 5,039 | 4,828 | 5,489 | 5,404 | 6,556 | 1,680 | |
| Total assets | $240,476 | $196,249 | $142,367 | $109,986 | $91,420 | $80,159 | |
| Liabilities & Owners’ Equity | |||||||
| Mortgage payable | $198,739 | $153,978 | $112,199 | $87,271 | $67,836 | $66,246 | |
| Construction trade payables | 25,859 | 27,185 | 19,846 | 12,589 | 13,496 | 8,620 | |
| Accounts payable & other liabilities | 4,343 | 4,764 | 6,418 | 4,012 | 2,557 | 1,448 | |
| Total liabilities | 228,941 | 185,927 | 138,463 | 103,872 | 83,889 | 76,314 | |
| Owners’ equity | 11,535 | 10,322 | 3,904 | 6,114 | 7,531 | 3,845 | |
| Total liabilities & owners’ equity | $240,476 | $196,249 | $142,367 | $109,986 | $91,420 | $80,159 |
Summary Statements of Operations (dollars in thousands)
| Three Months Ended | YTD | ||||||
| 09/08 | 06/08 | 03/08 | 12/07 | 09/07 | 09/08 | 09/07 | |
| Revenues | $450 | $42 | $21 | $39 | $37 | $513 | $ 56 |
| Expenses | |||||||
| Property operating | 424 | 4 | -- | -- | -- | 428 | -- |
| General & administrative | 84 | 46 | 9 | 24 | 52 | 139 | 147 |
| Depreciation & amortization | 20 | 4 | -- | -- | -- | 24 | -- |
| Total expenses | 528 | 54 | 9 | 24 | 52 | 591 | 147 |
| Operating income | (78) | (12) | 12 | 15 | (15) | (78) | (91) |
| Interest expense | 30 | 6 | -- | -- | -- | 36 | -- |
| Net income (loss) | $(108) | $(18) | $12 | $15 | $(15) | $(114) | $(91) |
| Tanger’s share of: | |||||||
Total revenues less property operating and general & administrative expenses (“NOI”) | $(18) | $ (2) | $ 4 | $ 5 | $ (5) | $ (18) | $(30) |
| Net income (loss) | $(36) | $ (6) | $ 4 | $ 5 | $ (5) | $ (38) | $(30) |
| Depreciation (real estate related) | $ 7 | $ 1 | $-- | $ -- | $ -- | $ 8 | $ -- |
Debt Outstanding Summary (dollars in thousands)
| As of September 30, 2008 | |||
Principal Balance | Interest Rate | Maturity Date | |
| Unsecured debt | |||
| Unsecured term loan credit facility (1) | $235,000 | Libor + 1.60% | 6/10/11 |
| Unsecured credit facilities | 149,500 | Libor + 0.75% | 06/30/11 |
| 2015 Senior unsecured notes | 250,000 | 6.15% | 11/15/15 |
| 2026 Senior unsecured exchangeable notes | 149,500 | 3.75% | 8/15/26 |
Net discount, senior unsecured notes | (701) | ||
| Total debt | $783,299 | ||
Senior Unsecured Notes Financial Covenants (2)
| As of September 30, 2008 | |||
| Required | Actual | Compliance | |
| Total Consolidated Debt to Adjusted Total Assets | 60% | 53% | Yes |
| Total Secured Debt to Adjusted Total Assets | 40% | ---% | Yes |
| Total Unencumbered Assets to Unsecured Debt | 135% | 189% | Yes |
Consolidated Income Available for Debt Service to Annual Debt Service Charge | 2.00 | 3.76 | Yes |
(1) | In July 2008, we entered into an interest rate swap agreement with for a notional amount of $118.0 million. The purpose of the swap was to fix the interest rate on a portion of the $235.0 million outstanding under the term loan facility completed in June 2008. The swap fixed the one month LIBOR rate at 3.605%. This swap combined with the current spread of 160 basis points on the term loan facility fixes our interest rate on $118.0 million of variable rate debt at 5.205% until April 1, 2011. In September 2008, we entered into an additional interest rate swap agreement for a notional amount of $117.0 million. The purpose of the swap was to fix the interest rate on the remaining portion of the $235.0 million outstanding under the term loan facility completed in June 2008. The swap fixed the one month LIBOR rate at 3.700%. This swap combined with the current spread of 160 basis points on the term loan facility fixes our interest rate on $117.0 million of variable rate debt at 5.300% until April 1, 2011. |
| (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. |
Future Scheduled Principal Payments (dollars in thousands)
| As of September 30, 2008 | |||
Year | Scheduled Amortization Payments | Balloon Payments | Total Scheduled Payments |
| 2008 | $ -- | $ -- | $ -- |
| 2009 | -- | -- | -- |
| 2010 | -- | -- | -- |
| 2011 | -- | 384,500 | 384,500 |
| 2012 | -- | -- | -- |
| 2013 | -- | -- | -- |
| 2014 | -- | -- | -- |
| 2015 | -- | 250,000 | 250,000 |
| 2016 | -- | -- | -- |
| 2017 & thereafter | -- | (1) 149,500 | 149,500 |
| $-- | $784,000 | $784,000 | |
| Net Discount on Debt | (701) | ||
| $783,299 | |||
(1) 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.
Investor Information
Tanger Outlet Centers welcomes any questions or comments from shareholders, analysts, investment managers, media and prospective investors. Please address all inquiries to our Investor Relations Department.
Tanger Factory Outlet Centers, Inc.
Investor Relations
Phone: (336) 292-6825
Fax: (336) 297-0931
e-mail: tangermail@tangeroutlet.com
Mail: Tanger Factory Outlet Centers, Inc.
3200 Northline Avenue
Suite 360
Greensboro, NC 27408