Tanger Factory Outlet Centers, Inc.
Supplemental Operating and Financial Data
September 30, 2005
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, 2004.
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.
Section
Portfolio Data:
Geographic Diversificaton...................................................................................................................................................................4
Property Summary.................................................................................................................................................................................5
Portfolio Occupancy at the end of Each Period.......................................................................................................................................6
Major Tenants..........................................................................................................................................................................................7
Lease Expirations as of September 30, 2005............................................................................................................................................8
Leasing Activity....................................................................................................................................................................................9
Financial Data:
Consolidated Balance Sheets............................................................................................................................................................10
Consolidated Statements of Operations..........................................................................................................................................11
FFO and FAD Analysis.....................................................................................................................................................................12
Per Weighted Average Gross Leasable Area (GLA) Analysis....................................................................................................13
Unconsolidated Joint Venture Information.....................................................................................................................................14
Debt Outstanding Summary..............................................................................................................................................................15
HYFuture Scheduled Principal Payments........................................................................................................................................16
Investor Information......................................................................................................................................................................................17
Geographic Diversification
As of September 30, 2005 |
State | # of Centers | GLA | % of GLA |
South Carolina (1) (2) | 3 | 1,222,503 | 14% |
Georgia | 3 | 808,810 | 9% |
New York | 1 | 729,497 | 9% |
Texas | 2 | 620,000 | 7% |
Alabama (2) | 2 | 615,332 | 7% |
Delaware (2) | 1 | 568,873 | 7% |
Tennessee | 2 | 513,732 | 6% |
Michigan | 2 | 436,751 | 5% |
Utah (2) | 1 | 300,602 | 4% |
Connecticut (2) | 1 | 291,051 | 3% |
Missouri | 1 | 277,883 | 3% |
Iowa | 1 | 277,230 | 3% |
Oregon (2) | 1 | 270,280 | 3% |
Illinois (2) | 1 | 256,514 | 3% |
Pennsylvania | 1 | 255,152 | 3% |
Louisiana | 1 | 243,499 | 3% |
New Hampshire (2) | 1 | 227,998 | 3% |
Florida | 1 | 198,924 | 2% |
North Carolina (3) | 2 | 187,510 | 2% |
Minnesota | 1 | 134,480 | 2% |
California | 1 | 108,950 | 1% |
Maine | 2 | 84,313 | 1% |
Total | 32 | 8,629,884 | 100% |
| (1) | Includes one center in Myrtle Beach, SC of which Tanger owns a 50% interest through a joint venture arrangement. |
| (2) | Includes nine centers from the Charter Oak portfolio acquired on December 19, 2003 of which Tanger owns a one-third interest through a joint venture arrangement. |
| (3) | Excludes one center in Burlington, NC for which we only have management responsibilities. |
Property Summary - Occupancy at End of Each Period Shown
Location | Total GLA 9/30/05 | % Occupied 9/30/05 | % Occupied 6/30/05 | % Occupied 3/31/05 | % Occupied 12/31/04 | % Occupied 09/30/04 |
Riverhead, NY | 729,497 | 100% | 99% | 99% | 99% | 99% |
Rehoboth, DE (2) | 568,873 | 99% | 100% | 99% | 99% | 99% |
Foley, AL (2) | 535,757 | 98% | 99% | 95% | 99% | 99% |
San Marcos, TX | 442,510 | 99% | 99% | 98% | 100% | 97% |
Myrtle Beach, SC (2) | 427,417 | 90% | 93% | 92% | 92% | 96% |
Sevierville, TN | 419,038 | 100% | 100% | 99% | 100% | 100% |
Myrtle Beach, SC (1) | 401,992 | 99% | 100% | 97% | 99% | 100% |
Hilton Head, SC (2) | 393,094 | 87% | 90% | 89% | 92% | 91% |
Commerce II, GA | 340,656 | 99% | 99% | 96% | 99% | 98% |
Howell, MI | 324,631 | 98% | 96% | 96% | 100% | 100% |
Park City, UT (2) | 300,602 | 99% | 99% | 98% | 97% | 97% |
Westbrook, CT (2) | 291,051 | 92% | 92% | 92% | 93% | 93% |
Locust Grove, GA | 282,404 | 99% | 98% | 97% | 100% | 98% |
Branson, MO | 277,883 | 100% | 100% | 100% | 100% | 100% |
Williamsburg, IA | 277,230 | 99% | 96% | 96% | 100% | 97% |
Lincoln City, OR (2) | 270,280 | 94% | 92% | 91% | 96% | 95% |
Tuscola, IL (2) | 256,514 | 76% | 76% | 75% | 78% | 76% |
Lancaster, PA | 255,152 | 100% | 99% | 99% | 100% | 99% |
Gonzales, LA | 243,499 | 98% | 100% | 100% | 100% | 97% |
Tilton, NH (2) | 227,998 | 96% | 96% | 91% | 99% | 98% |
Fort Myers, FL | 198,924 | 91% | 91% | 92% | 91% | 87% |
Commerce I, GA | 185,750 | 90% | 86% | 76% | 82% | 68% |
Terrell, TX | 177,490 | 99% | 99% | 100% | 100% | 97% |
North Branch, MN | 134,480 | 100% | 100% | 98% | 100% | 100% |
West Branch, MI | 112,120 | 100% | 97% | 98% | 98% | 100% |
Barstow, CA | 108,950 | 93% | 98% | 100% | 100% | 100% |
Blowing Rock, NC | 105,332 | 100% | 100% | 100% | 100% | 100% |
Pigeon Forge, TN | 94,694 | 95% | 96% | 93% | 96% | 96% |
Nags Head, NC | 82,178 | 98% | 100% | 100% | 100% | 100% |
Boaz, AL | 79,575 | 95% | 95% | 95% | 95% | 95% |
Kittery I, ME | 59,694 | 100% | 100% | 100% | 100% | 100% |
Kittery II, ME | 24,619 | 100% | 100% | 100% | 100% | 100% |
Seymour, IN | n/a | n/a | n/a | n/a | 89% | 85% |
Total (3) | 8,629,884 | 97% | 97% | 95% | 97% | 96% |
| (1) | Includes one center in Myrtle Beach, SC of which Tanger owns a 50% interest through a joint venture arrangement. |
| (2) | Includes nine centers from the Charter Oak portfolio acquired on December 19, 2003 of which Tanger owns a one-third interest through a joint venture arrangement. |
| (3) | Excludes one center in Burlington, NC for which we only have management responsibilities. |
Portfolio Occupancy at the End of Each Period (1)
09/05 06/06 03/05 12/04 09/04 06/04 03/04 12/03 09/03
97% 97% 95% 97% 96% 95% 94% 96% 95%
| (1) | Includes one center in Myrtle Beach, SC of which Tanger owns a 50% interest through a joint venture arrangement and the nine centers in the Charter Oak portfolio of which Tanger owns a one-third interest through a joint venture arrangement. Excludes one center in Burlington, NC for which we only have management responsibilities. |
Major Tenants (1)
Ten Largest Tenants As of September 30, 2005 (1) |
Tenant | # of Stores | GLA | % of Total GLA |
The Gap, Inc. | 60 | 600,112 | 7.0% |
Phillips-Van Heusen | 96 | 459,437 | 5.3% |
Liz Claiborne | 50 | 359,849 | 4.2% |
VF Factory Outlet | 38 | 308,796 | 3.6% |
Carter’s | 51 | 243,777 | 2.8% |
Reebok International | 31 | 240,502 | 2.8% |
Dress Barn, Inc. | 31 | 225,650 | 2.6% |
Retail Brand Alliance, Inc. | 35 | 209,985 | 2.4% |
Polo Ralph Lauren | 24 | 197,569 | 2.3% |
Brown Group Retail, Inc. | 48 | 196,978 | 2.3% |
Total of All Listed Above | 464 | 3,042,655 | 35.3% |
| (1) | Includes one center in Myrtle Beach, SC of which Tanger owns a 50% interest through a joint venture arrangement and the nine centers in the Charter Oak portfolio of which Tanger owns a one-third interest through a joint venture arrangement. Excludes one center in Burlington, NC for which we only have management responsibilities. |
Lease Expirations as of September 30, 2005
Percentage of Total Gross Leasable Area (1)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015+
3% 17% 19% 16% 16% 14% 8% 3% 1% 1% 2%
Percentage of Total Annualized Base Rent (1)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015+
3% 17% 19% 17% 15% 16% 7% 2% 1% 1% 2%
Leasing Activity (1)
| | 03/31/05 | 06/30/05 | 09/30/05 | 12/31/05 | Year to Date | Prior Year to Date |
Re-tenanted Space: | | | | | | |
Number of leases | 42 | 32 | 23 | | 97 | 99 |
Gross leasable area | 204,830 | 117,356 | 73,042 | | 395,228 | 396,189 |
New base rent per square foot | $17.25 | $16.41 | $21.52 | | $17.79 | $17.27 |
Prior base rent per square foot | $16.60 | $15.72 | $18.00 | | $16.60 | $16.57 |
Percent increase in rent per square foot | 3.9% | 4.4% | 19.5% | | 7.2% | 4.2% |
| | | | | | | |
Renewed Space: | | | | | | |
Number of leases | 169 | 74 | 48 | | 291 | 328 |
Gross leasable area | 739,494 | 334,357 | 228,647 | | 1,302,498 | 1,452,268 |
New base rent per square foot | $17.35 | $16.20 | $14.98 | | $16.64 | $14.61 |
Prior base rent per square foot | $15.97 | $15.25 | $14.82 | | $15.58 | $13.78 |
Percent increase in rent per square foot | 8.6% | 6.2% | 1.1% | | 6.8% | 6.0% |
| | | | | | | |
Total Re-tenanted and Renewed Space: | | | | | | |
Number of leases | 211 | 106 | 71 | | 388 | 427 |
Gross leasable area | 944,324 | 451,713 | 301,689 | | 1,697,726 | 1,848,457 |
New base rent per square foot | $17.33 | $16.25 | $16.56 | | $16.90 | $15.18 |
Prior base rent per square foot | $16.10 | $15.37 | $15.59 | | $15.82 | $14.38 |
Percent increase in rent per square foot | 7.6% | 5.7% | 6.2% | | 6.9% | 5.6% |
| | 03/31/05 | 06/30/05 | 09/30/05 | 12/31/05 | Year to Date | Prior Year to Date |
Stores Opening: | | | | | | |
Number of stores | 13 | 32 | 30 | | 75 | 94 |
Gross leasable area | 50,994 | 105,009 | 133,745 | | 289,748 | 323,471 |
Base rent per square foot | $15.05 | $18.24 | $17.98 | | $17.56 | $17.37 |
| | | | | | | |
Stores Closing: | | | | | | |
Number of stores | 32 | 13 | 27 | | 72 | 96 |
Gross leasable area | 103,163 | 57,780 | 80,182 | | 241,125 | 336,250 |
Base rent per square foot | $18.02 | $13.35 | $18.88 | | $17.18 | $16.27 |
| | | | | | | |
Percent increase in rent per square foot | (16.5%) | 36.7% | (4.8%) | | 2.2% | 6.7% |
| | | | | | | |
| (1) | Includes one center in Myrtle Beach, SC of which Tanger owns a 50% interest through a joint venture arrangement and the nine centers in the Charter Oak portfolio of which Tanger owns a one-third interest through a joint venture arrangement. Excludes one center in Burlington, NC for which we only have management responsibilities. |
Consolidated Balance Sheets (dollars in thousands)
| | | | 9/30/05 | | | 6/30/05 | | | 3/31/05 | | | 12/31/04 | | | 09/30/04 | |
Assets | | | | | | | | | | | | | | | | |
Rental property | | | | | | | | | | | | | | | | |
Land | | $ | 113,284 | | $ | 113,284 | | $ | 113,355 | | $ | 113,830 | | $ | 113,869 | |
Buildings | | | 960,105 | | | 956,440 | | | 954,758 | | | 963,563 | | | 956,109 | |
Construction in progress | | | 8,797 | | | 6,044 | | | 1,173 | | | -- | | | -- | |
Total rental property | | | 1,082,186 | | | 1,075,768 | | | 1,069,286 | | | 1,077,393 | | | 1,069,978 | |
Accumulated depreciation | | | (247,179 | ) | | (237,688 | ) | | (228,252 | ) | | (224,622 | ) | | (215,172 | ) |
Total rental property - net | | | 835,007 | | | 838,080 | | | 841,034 | | | 852,771 | | | 854,806 | |
Cash | | | 6,219 | | | 3,543 | | | 6,531 | | | 4,103 | | | 27,135 | |
Short-term investments | | | 20,000 | | | -- | | | -- | | | -- | | | -- | |
Deferred charges - net | | | 52,873 | | | 54,818 | | | 55,611 | | | 58,851 | | | 60,958 | |
Other assets | | | 26,895 | | | 21,785 | | | 21,536 | | | 20,653 | | | 19,595 | |
Total assets | | $ | 940,994 | | $ | 918,226 | | $ | 924,712 | | $ | 936,378 | | $ | 962,494 | |
| | | | | | | | | | | | | | | | | |
Liabilities, minority interests & shareholders’ equity | | | | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | | | | |
Debt | | | | | | | | | | | | | | | | |
Senior, unsecured notes | | $ | 100,000 | | $ | 100,000 | | $ | 100,000 | | $ | 100,000 | | $ | 147,509 | |
Mortgages payable | | | 281,069 | | | 290,197 | | | 305,983 | | | 308,342 | | | 310,483 | |
Unsecured note | | | 53,500 | | | 53,500 | | | 53,500 | | | 53,500 | | | 53,500 | |
Lines of credit | | | -- | | | 45,330 | | | 33,455 | | | 26,165 | | | -- | |
Total debt | | | 434,569 | | | 489,027 | | | 492,938 | | | 488,007 | | | 511,492 | |
Construction trade payables | | | 8,294 | | | 9,231 | | | 9,781 | | | 11,918 | | | 10,361 | |
Accounts payable & accruals | | | 14,849 | | | 16,984 | | | 25,753 | | | 17,026 | | | 17,488 | |
Total liabilities | | | 457,712 | | | 515,242 | | | 528,472 | | | 516,951 | | | 539,341 | |
Minority interests | | | | | | | | | | | | | | | | |
Consolidated joint venture | | | 227,234 | | | 225,103 | | | 223,895 | | | 222,673 | | | 221,400 | |
Operating partnership | | | 42,220 | | | 31,963 | | | 31,045 | | | 35,621 | | | 36,533 | |
Total minority interests | | | 269,454 | | | 257,066 | | | 254,940 | | | 258,294 | | | 257,933 | |
Shareholders’ equity | | | | | | | | | | | | | | | | |
Common shares | | | 307 | | | 277 | | | 276 | | | 274 | | | 274 | |
Paid in capital | | | 349,287 | | | 278,811 | | | 277,857 | | | 274,340 | | | 274,286 | |
Distributions in excess of net income | | | (130,955 | ) | | (126,436 | ) | | (129,917 | ) | | (109,506 | ) | | (105,116 | ) |
Deferred compensation | | | (5,930 | ) | | (6,372 | ) | | (6,844 | ) | | (3,975 | ) | | (4,224 | ) |
Accum. other compreh. income (loss) | | | 1,119 | | | (362 | ) | | (72 | ) | | -- | | | -- | |
Total shareholders’ equity | | | 213,828 | | | 145,918 | | | 141,300 | | | 161,133 | | | 165,220 | |
Total liabilities, minority interests & shareholders’ equity | | $ | 940,994 | | $ | 918,226 | | $ | 924,712 | | $ | 936,378 | | $ | 962,494 | |
Consolidated Statements of Operations (dollars and shares in thousands)
| | | Three Months Ended | YTD |
| | | | 09/05 | | | 06/05 | | | 03/05 | | | 12/04 | | | 09/04 | | | 09/05 | | | 09/04 | |
Revenues | | | | | | | | | | | | | | | | | | | | | | |
Base rentals | | $ | 33,981 | | $ | 33,528 | | $ | 31,861 | | $ | 33,504 | | $ | 32,879 | | $ | 99,370 | | $ | 96,380 | |
Percentage rentals | | | 1,815 | | | 1,267 | | | 886 | | | 2,380 | | | 1,289 | | | 3,968 | | | 2,958 | |
Expense reimbursements | | | 14,248 | | | 12,620 | | | 14,297 | | | 14,629 | | | 13,060 | | | 41,165 | | | 37,956 | |
Other income | | | 1,595 | | | 1,205 | | | 947 | | | 1,692 | | | 1,816 | | | 3,747 | | | 5,054 | |
Total revenues | | | 51,639 | | | 48,620 | | | 47,991 | | | 52,205 | | | 49,044 | | | 148,250 | | | 142,348 | |
Expenses | | | | | | | | | | | | | | | | | | | | | | |
Property operating | | | 16,060 | | | 14,611 | | | 16,240 | | | 16,664 | | | 14,953 | | | 46,911 | | | 43,095 | |
General & administrative | | | 3,578 | | | 3,711 | | | 3,044 | | | 3,063 | | | 3,346 | | | 10,333 | | | 9,757 | |
Depreciation & amortization | | | 12,108 | | | 11,420 | | | 12,930 | | | 12,292 | | | 14,042 | | | 36,458 | | | 39,154 | |
Total expenses | | | 31,746 | | | 29,742 | | | 32,214 | | | 32,019 | | | 32,341 | | | 93,702 | | | 92,006 | |
Operating income | | | 19,893 | | | 18,878 | | | 15,777 | | | 20,186 | | | 16,703 | | | 54,548 | | | 50,342 | |
Interest expense | | | 7,932 | | | 8,167 | | | 8,228 | | | 8,433 | | | 8,919 | | | 24,327 | | | 26,684 | |
Income before equity in earnings of unconsolidated joint ventures, minority interests, discontinued operations and loss on sale of real estate | | | 11,961 | | | 10,711 | | | 7,549 | | | 11,753 | | | 7,784 | | | 30,221 | | | 23,658 | |
Equity in earnings of unconsolidated joint ventures | | | 255 | | | 268 | | | 191 | | | 243 | | | 359 | | | 714 | | | 799 | |
Minority interests: | | | | | | | | | | | | | | | | | | | | | | |
Consolidated joint venture | | | (6,860 | ) | | (6,727 | ) | | (6,624 | ) | | (6,734 | ) | | (7,198 | ) | | (20,211 | ) | | (20,410 | ) |
Operating partnership | | | (943 | ) | | (772 | ) | | (202 | ) | | (958 | ) | | (175 | ) | | (1,917 | ) | | (743 | ) |
Income from continuing operations | | | 4,413 | | | 3,480 | | | 914 | | | 4,304 | | | 770 | | | 8,807 | | | 3,304 | |
Discontinued operations (1) | | | -- | | | -- | | | -- | | | -- | | | (2,785 | ) | | -- | | | (562 | ) |
Income before loss on sale of real estate | | | 4,413 | | | 3,480 | | | 914 | | | 4,304 | | | (2,015 | ) | | 8,807 | | | 2,742 | |
Loss on sale of real estate | | | -- | | | -- | | | (3,843 | ) | | -- | | | -- | | | (3,843 | ) | | -- | |
Net income (loss) | | $ | 4,413 | | $ | 3,480 | | $ | (2,929 | ) | $ | 4,304 | | $ | (2,015 | ) | $ | 4,964 | | $ | 2,742 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Basic earnings per common share: | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | .16 | | $ | .13 | | $ | (.11 | ) | $ | .16 | | $ | .03 | | $ | .18 | | $ | .12 | |
Net income (loss) | | $ | .16 | | $ | .13 | | $ | (.11 | ) | $ | .16 | | $ | (.07 | ) | $ | .18 | | $ | .10 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Diluted earnings per common share: | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | .15 | | $ | .13 | | $ | (.11 | ) | $ | .16 | | $ | .03 | | $ | .18 | | $ | .12 | |
Net income (loss) | | $ | .15 | | $ | .13 | | $ | (.11 | ) | $ | .16 | | $ | (.07 | ) | $ | .18 | | $ | .10 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Weighted average common shares: | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | 28,374 | | | 27,357 | | | 27,304 | | | 27,266 | | | 27,224 | | | 27,682 | | | 26,969 | |
Diluted | | | 28,680 | | | 27,576 | | | 27,516 | | | 27,520 | | | 27,366 | | | 27,934 | | | 27,183 | |
| (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, 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 |
| | | | 09/05 | | | 06/05 | | | 03/05 | | | 12/04 | | | 09/04 | | | 09/05 | | | 09/04 | |
Funds from operations: | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 4,413 | | $ | 3,480 | | $ | (2,929 | ) | $ | 4,304 | | $ | (2,015 | ) | $ | 4,964 | | $ | 2,742 | |
Adjusted for - | | | | | | | | | | | | | | | | | | | | | | |
Minority interest in operating partnership | | | 943 | | | 772 | | | 202 | | | 958 | | | 175 | | | 1,917 | | | 743 | |
Minority interest adjustment consolidated joint venture | | | (441 | ) | | (277 | ) | | 169 | | | (198 | ) | | 314 | | | (549 | ) | | 18 | |
Minority interest, depreciation and amortization in discontinued operations | | | -- | | | -- | | | -- | | | -- | | | (518 | ) | | -- | | | 433 | |
Depreciation and amortization uniquely significant to | | | | | | | | | | | | | | | | | | | | | | |
real estate - wholly owned | | | 12,041 | | | 11,358 | | | 12,876 | | | 12,239 | | | 13,986 | | | 36,275 | | | 38,985 | |
Depreciation and amortization uniquely significant to | | | | | | | | | | | | | | | | | | | | | | |
real estate - joint ventures | | | 375 | | | 370 | | | 369 | | | 379 | | | 351 | | | 1,114 | | | 955 | |
(Gain) loss on sale of real estate | | | -- | | | -- | | | 3,843 | | | -- | | | 3,544 | | | 3,843 | | | (1,460 | ) |
Funds from operations | | $ | 17,331 | | $ | 15,703 | | $ | 14,530 | | $ | 17,682 | | $ | 15,837 | | $ | 47,564 | | $ | 45,336 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Funds from operations per share | | $ | .50 | | $ | .47 | | $ | .43 | | $ | .53 | | $ | .47 | | $ | 1.40 | | $ | 1.36 | |
Funds available for distribution: | | | | | | | | | | | | | | | | | | | | | | |
Funds from operations | | $ | 17,331 | | $ | 15,703 | | $ | 14,530 | | $ | 17,682 | | $ | 15,837 | | $ | 47,564 | | $ | 45,336 | |
Adjusted For - | | | | | | | | | | | | | | | | | | | | | | |
Corporate depreciation excluded above | | | 66 | | | 62 | | | 55 | | | 53 | | | 56 | | | 183 | | | 169 | |
Amortization of finance costs | | | 323 | | | 341 | | | 355 | | | 350 | | | 383 | | | 1,019 | | | 1,115 | |
Amortization of share compensation | | | 426 | | | 468 | | | 242 | | | 237 | | | 236 | | | 1,136 | | | 1,239 | |
Straight line rent adjustment | | | (706 | ) | | (539 | ) | | (112 | ) | | (90 | ) | | (81 | ) | | (1,357 | ) | | (299 | ) |
Below market rent adjustment | | | 76 | | | (613 | ) | | (46 | ) | | (418 | ) | | (277 | ) | | (583 | ) | | (647 | ) |
Market rate interest adjustment | | | (652 | ) | | (643 | ) | | (629 | ) | | (631 | ) | | (634 | ) | | (1,924 | ) | | (1,879 | ) |
2nd generation tenant allowances | | | (1,290 | ) | | (2,346 | ) | | (4,462 | ) | | (2,839 | ) | | (1,413 | ) | | (8,098 | ) | | (4,529 | ) |
Capital improvements | | | (1,841 | ) | | (2,231 | ) | | (952 | ) | | (2,080 | ) | | (1,583 | ) | | (5,024 | ) | | (4,965 | ) |
Consolidated joint venture minority interest share of adjustments | | | 441 | | | 277 | | | (169 | ) | | 198 | | | (314 | ) | | 549 | | | (18 | ) |
Funds available for distribution | | $ | 14,174 | | $ | 10,479 | | $ | 8,812 | | $ | 12,462 | | $ | 12,209 | | $ | 33,465 | | $ | 35,522 | |
Funds available for distribution per share | | $ | .41 | | $ | .31 | | $ | .26 | | $ | .37 | | $ | .37 | | $ | .98 | | $ | 1.07 | |
Dividends paid per share | | $ | .3225 | | $ | .3225 | | $ | .3125 | | $ | .3125 | | $ | .3125 | | $ | .9575 | | $ | .9325 | |
| | | | | | | | | | | | | | | | | | | | | | | |
FFO payout ratio | | | 65 | % | | 69 | % | | 73 | % | | 59 | % | | 66 | % | | 68 | % | | 69 | % |
FAD payout ratio | | | 79 | % | | 104 | % | | 120 | % | | 84 | % | | 84 | % | | 98 | % | | 87 | % |
Diluted weighted average common shs. | | | 34,747 | | | 33,643 | | | 33,583 | | | 33,587 | | | 33,433 | | | 34,001 | | | 33,250 | |
Per Weighted Average Gross Leasable Area (GLA) Analysis
| | | Three Months Ended | | YTD | |
| | | | 09/05 | | | 06/05 | | | 03/05 | | | 12/04 | | | 09/04 | | | 09/05 | | | 09/04 | |
GLA open at end of period - (000’s) Wholly owned | | | 4,956 | | | 4,923 | | | 4,925 | | | 5,066 | | | 5,066 | | | 4,956 | | | 5,066 | |
Partially owned consolidated (1) | | | 3,271 | | | 3,271 | | | 3,271 | | | 3,271 | | | 3,271 | | | 3,271 | | | 3,271 | |
Partially owned unconsolidated(2) | | | 402 | | | 402 | | | 402 | | | 402 | | | 391 | | | 402 | | | 391 | |
Managed properties | | | 65 | | | 65 | | | 65 | | | 105 | | | 432 | | | 65 | | | 432 | |
Total GLA open at end of period | | | 8,694 | | | 8,661 | | | 8,663 | | | 8,844 | | | 9,160 | | | 8,694 | | | 9,160 | |
Weighted average GLA (000’s) (3) | | | 8,207 | | | 8,196 | | | 8,281 | | | 8,337 | | | 8,338 | | | 8,227 | | | 8,338 | |
End of period occupancy (1) (2) | | | 97 | % | | 97 | % | | 95 | % | | 97 | % | | 96 | % | | 97 | % | | 96 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
PER SQUARE FOOT | | | | | | | | | | | | | | | | | | | | | | |
Revenues | | | | | | | | | | | | | | | | | | | | | | |
Base rentals | | $ | 4.14 | | $ | 4.09 | | $ | 3.85 | | $ | 4.02 | | $ | 3.95 | | $ | 12.08 | | $ | 11.56 | |
Percentage rentals | | | .22 | | | .15 | | | .11 | | | .29 | | | .15 | | | .48 | | | .35 | |
Expense reimbursements | | | 1.73 | | | 1.54 | | | 1.73 | | | 1.75 | | | 1.56 | | | 5.00 | | | 4.55 | |
Other income | | | .20 | | | .15 | | | .11 | | | .20 | | | .22 | | | .46 | | | .61 | |
Total revenues | | | 6.29 | | | 5.93 | | | 5.80 | | | 6.26 | | | 5.88 | | | 18.02 | | | 17.07 | |
Expenses | | | | | | | | | | | | | | | | | | | | | | |
Property operating | | | 1.96 | | | 1.78 | | | 1.96 | | | 2.00 | | | 1.79 | | | 5.70 | | | 5.17 | |
General & administrative | | | .44 | | | .45 | | | .37 | | | .37 | | | .40 | | | 1.26 | | | 1.17 | |
Depreciation & amortization | | | 1.48 | | | 1.39 | | | 1.56 | | | 1.47 | | | 1.69 | | | 4.43 | | | 4.70 | |
Total expenses | | | 3.88 | | | 3.62 | | | 3.89 | | | 3.84 | | | 3.88 | | | 11.39 | | | 11.04 | |
Operating income | | | 2.41 | | | 2.31 | | | 1.91 | | | 2.42 | | | 2.00 | | | 6.63 | | | 6.03 | |
Interest expense | | | .97 | | | 1.00 | | | .99 | | | 1.01 | | | 1.07 | | | 2.96 | | | 3.20 | |
Income before equity in earnings of unconsolidated joint ventures, minority interest, discontinued operations and loss on sale of real estate | | $ | 1.44 | | $ | 1.31 | | $ | .92 | | $ | 1.41 | | $ | .93 | | $ | 3.67 | | $ | 2.83 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total revenues less property operating and general & administrative expenses (“NOI”) | | $ | 3.89 | | $ | 3.70 | | $ | 3.47 | | $ | 3.89 | | $ | 3.69 | | $ | 11.06 | | $ | 10.73 | |
| (1) | Includes the nine centers from the Charter Oak portfolio acquired on December 19, 2003 of which Tanger owns a one-third interest through a joint venture arrangement. |
| (2) | Includes one center in Myrtle Beach, SC of which Tanger owns a 50% interest through a joint venture arrangement. |
| (3) | Represents GLA of wholly owned and partially owned consolidated operating properties weighted by months of operation. GLA is not adjusted for fluctuations in occupancy that may occur subsequent to the original opening date. Excludes GLA of properties for which their results are included in discontinued operations. |
Unconsolidated Joint Venture Information - All
Summary Balance Sheets (dollars in thousands)
| | | 09/30/05 | | 06/30/05 | | 03/31/05 | | 12/31/04 | | 9/30/04 | | Tanger’s Share as of 09/30/05 (1) | |
Assets | | | | | | | | | | | | | | | | | | | |
Investment properties at cost - net | | $ | 65,585 | | $ | 67,446 | | $ | 67,399 | | $ | 69,865 | | $ | 68,615 | | $ | 28,459 | |
Cash and cash equivalents | | | 4,171 | | | 4,253 | | | 4,319 | | | 2,449 | | | 2,184 | | | 1,817 | |
Deferred charges - net | | | 1,340 | | | 1,433 | | | 1,305 | | | 1,973 | | | 2,076 | | | 670 | |
Other assets | | | 6,073 | | | 4,245 | | | 3,869 | | | 2,826 | | | 3,168 | | | 2,357 | |
Total assets | | $ | 77,169 | | $ | 77,377 | | $ | 76,892 | | $ | 77,113 | | $ | 76,043 | | $ | 33,303 | |
| | | | | | | | | | | | | | | | | | | | |
Liabilities & Owners’ Equity | | | | | | | | | | | | | | | | | | | |
Mortgage payable | | $ | 61,066 | | $ | 61,024 | | $ | 60,254 | | $ | 59,708 | | $ | 59,233 | | $ | 26,322 | |
Member loans payable | | | 550 | | | -- | | | -- | | | -- | | | -- | | | 275 | |
Construction trade payables | | | 215 | | | 477 | | | 426 | | | 578 | | | 1,328 | | | 108 | |
Accounts payable & other liabilities | | | 1,239 | | | 1,956 | | | 828 | | | 702 | | | 730 | | | 529 | |
Total liabilities | | | 63,070 | | | 63,457 | | | 61,508 | | | 60,988 | | | 61,291 | | | 27,234 | |
Owners’ equity | | | 14,099 | | | 13,920 | | | 15,384 | | | 16,125 | | | 14,752 | | | 6,069 | |
Total liabilities & owners’ equity | | $ | 77,169 | | $ | 77,377 | | $ | 76,892 | | $ | 77,113 | | $ | 76,043 | | $ | 33,303 | |
(1) Tanger’s portion of investment properties at cost - net, includes $8.7 million associated with a development property that generated net income considered incidental to its intended future operation as an outlet center. As such, the net income generated from this property is recorded as a reduction to the carrying value of the property and is therefore not included in the summary statement of operations below.
Summary Statements of Operations (dollars in thousands)
| | | Three Months Ended | | YTD | |
| | | 09/05 | | 06/05 | | 03/05 | | 12/04 | | 09/04 | | 09/05 | | 09/04 | |
Revenues | | $ | 2,735 | | $ | 2,933 | | $ | 2,511 | | $ | 2,557 | | $ | 2,682 | | $ | 8,179 | | $ | 7,264 | |
Expenses | | | | | | | | | | | | | | | | | | | | | | |
Property operating | | | 888 | | | 1,067 | | | 974 | | | 900 | | | 918 | | | 2,929 | | | 2,639 | |
General & administrative | | | 4 | | | 15 | | | -- | | | 10 | | | 8 | | | 19 | | | 21 | |
Depreciation & amortization | | | 777 | | | 769 | | | 767 | | | 765 | | | 723 | | | 2,313 | | | 1,977 | |
Total expenses | | | 1,669 | | | 1,851 | | | 1,741 | | | 1,675 | | | 1,649 | | | 5,261 | | | 4,637 | |
Operating income | | | 1,066 | | | 1,082 | | | 770 | | | 882 | | | 1,033 | | | 2,918 | | | 2,627 | |
Interest expense | | | 584 | | | 574 | | | 417 | | | 401 | | | 346 | | | 1,575 | | | 1,131 | |
Net income | | $ | 482 | | $ | 508 | | $ | 353 | | $ | 481 | | $ | 687 | | $ | 1,343 | | $ | 1,496 | |
Tanger’s share of: | | | | | | | | | | | | | | | | | | | | | | |
Total revenues less property operating and general & administrative expenses (“NOI”) | | $ | 922 | | $ | 925 | | $ | 769 | | $ | 824 | | $ | 878 | | $ | 2,616 | | $ | 2,302 | |
Net income | | $ | 255 | | $ | 268 | | $ | 191 | | $ | 243 | | $ | 359 | | $ | 714 | | $ | 799 | |
Depreciation (real estate related) | | $ | 375 | | $ | 370 | | $ | 369 | | $ | 379 | | $ | 351 | | $ | 1,114 | | $ | 955 | |
Debt Outstanding Summary (dollars in thousands)
As of September 30, 2005 | |
| | | Principal Balance | | Interest Rate | | Maturity Date | |
Mortgage debt | | | | | | | | | | |
Kittery I, ME (1) San Marcos I, TX (1) West Branch, MI (1) Williamsburg, IA (1) | | $ | 59,263 | | | 7.875 | % | | 04/01/09 | |
San Marcos II, TX (1) | | | 18,151 | | | 7.980 | % | | 04/01/09 | |
Blowing Rock, NC | | | 9,244 | | | 8.860 | % | | 09/01/10 | |
Nags Head, NC | | | 6,273 | | | 8.860 | % | | 09/01/10 | |
Consolidated JV Debt | | | 180,875 | | | 6.590 | % | | 07/10/08 | |
Premium on Consolidated JV Debt (2) | | | 7,263 | | | | | | | |
Total mortgage debt | | | 281,069 | | | | | | | |
| | | | | | | | | | | |
Corporate debt | | | | | | | | | | |
Unsecured term loan | | | 53,500 | | | Libor + 1.45 | % | | 03/26/06 | |
Unsecured credit facilities | | | --- | | | Libor + 1.40 | % | | 06/30/07 | |
2001 Senior unsecured notes | | | 100,000 | | | 9.125 | % | | 02/15/08 | |
Total corporate debt | | | 153,500 | | | | | | | |
Total debt | | $ | 434,569 | | | | | | | |
| (1) | Represents mortgages prepaid on October 3, 2005. |
| (2) | Represents a premium on mortgage debt with an imputed interest rate of 4.97% assumed in the Charter Oak acquisition joint venture, which is consolidated on Tanger’s balance sheet. |
Future Scheduled Principal Payments (dollars in thousands)
As of September 30, 2005 |
Year | Scheduled Amortization Payments | Balloon Payments | Total Scheduled Payments |
2005 | 930 | 77,414 | 78,344 |
2006 | 3,849 | 53,500 | 57,349 |
2007 | 4,121 | -- | 4,121 |
2008 | 2,688 | 270,351 | 273,039 |
2009 | 394 | -- | 394 |
2010 | 181 | 13,878 | 14,059 |
2011 | -- | -- | -- |
2012 | -- | -- | -- |
2013 | -- | -- | -- |
2014 | | | |
2015 & thereafter | -- | -- | -- |
| | $12,163 | $415,143 | $427,306 |
Premium on Consolidated JV Debt (1) | | 7,263 |
| | | | $434,569 |
| (1) | Represents a premium on mortgage debt assumed in the Charter Oak acquisition joint venture, which is consolidated on Tanger’s balance sheet. |
Investor Information
Tanger Outlet Centers welcomes any questions or comments from shareholders, analysts, investment managers, media and prospective investors. Please address all inquiries to our Investor Relations Department.
Tanger Factory Outlet Centers, Inc.
Investor Relations
Phone: (336) 292-3010 ext 6825
Fax: (336) 297-0931
e-mail: tangermail@tangeroutlet.com
Mail: Tanger Factory Outlet Centers, Inc.
3200 Northline Avenue
Suite 360
Greensboro, NC 27408
