Tanger Factory Outlet Centers, Inc.
Supplemental Operating and Financial Data
March 31, 2003
1
Notice
This Supplemental Operating and Financial Data may contain forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995, which reflect management's current views with respect to future events and
financial performance relating to our re-merchandising strategy, the renewal and
re-tenanting of space, tenant sales and sales trends, interest rates, funds from
operations, the development of new centers, the opening of ongoing expansions,
coverage of the current dividend and the impact of sales of land parcels. These
forward-looking statements are subject to risks and uncertainties. Actual
results could differ materially from those projected due to various factors
including, but not limited to, the risks associated with general economic and
local real estate conditions, the availability and cost of capital, our ability
to lease our properties, our inability to collect rent due to the bankruptcy or
insolvency of tenants or otherwise, and competition. 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, 2002.
This Supplemental Operating and Financial Data is not an offer to sell or a
solicitation to buy any securities of the Company. Any offers to sell or
solicitations to buy any securities of the Company shall be made only by means
of a prospectus.
2
Table of Contents
Section Page
Quarterly Highlights from Press Release Dated May 6, 2003 4
Portfolio Data
Geographic Diversification 7
Property Summary - Occupancy 8
Major Tenants 9
Lease Expirations 10
Leasing Activity 11
Financial Data
Consolidated Balance Sheets 12
Consolidated Statements of Operations 13
FFO and FAD Analysis 14
Per Weighted Average Gross Leasable Area (GLA) Analysis 15
Joint Venture Information 16
Debt Outstanding Summary 17
Future Scheduled Principal Payments 18
Investor Information 19
3
Quarterly Highlights from Press Release dated May 6, 2003
Greensboro, NC, May 6, 2003, Tanger Factory Outlet Centers, Inc. (NYSE:SKT)
today reported net income for the first quarter of 2003 was $2.2 million, or
$0.19 per share, as compared to net income of $1.4 million, or $0.12 per share
for the first quarter of 2002, representing a 58.3% per share increase. For the
three months ended March 31, 2003, funds from operations ("FFO"), a widely
accepted measure of REIT performance, was $10.3 million, or $0.78 per share, as
compared to FFO of $8.9 million, or $0.76 per share, for the three months ended
March 31, 2002, representing a 15.1% increase in total FFO and a 2.6% per share
increase. Net income and FFO per share amounts above are on a diluted basis. A
reconciliation of net income to FFO is presented on the supplemental information
page of this press release.
First Quarter Highlights
o 95% period-end portfolio occupancy rate
o 152 leases signed, totaling 677,000 square feet with respect to
re-tenanting and renewal activity, including 50.4% of the square footage
scheduled to expire during 2003
o $293 per square foot in reported same-space tenant sales for the rolling
twelve months ended March 31, 2003
o 7.2% occupancy cost per square foot for the rolling twelve months ended
March 31, 2003
o 99,000 square feet of development/expansion space underway and scheduled to
open in third quarter of 2003
o 45.8% debt-to-total market capitalization ratio, 2.62 times interest
coverage ratio
o $0.615 per share in common dividends declared, $2.46 per share annualized,
representing 10th consecutive year of increased dividends
Stanley K. Tanger, Chairman of the Board and Chief Executive Officer, commented,
"Our portfolio and tenants continued to perform well and post solid results,
despite being faced with numerous challenges in the first quarter, including
unusually harsh winter conditions and the shift in the Easter holiday to the
second quarter of 2003. Our portfolio occupancy held firm again at a strong 95%,
equaling our first-quarter occupancy rate for the past four consecutive years.
Importantly, we continued to operate our centers in a cost efficient manner, as
was evidenced by our low occupancy cost of 7.2%." Mr. Tanger continued, "During
the first three months we have already released or renewed approximately 50% of
the space scheduled to expire during the entire year. We are on track with our
development and expansion activities, which may have a positive impact on our
earnings in the second half of the year. Overall, we remain well-positioned to
achieve our stated growth objectives for the year."
Portfolio Operating Results
During the first quarter of 2003, Tanger executed 152 leases, totaling
approximately 677,000 square feet, including approximately 539,000 square feet,
representing 50.4%, of the 1,070,000 square feet originally scheduled to expire
during 2003. Tanger achieved a 1.7% increase in base rental revenue per square
4
foot, on a cash basis, with respect to this re-tenanting and renewal activity.
Additionally, the average initial cash base rent for new stores opened during
the first quarter of 2003 was $19.01, representing an increase of $1.43 or 8.1%
above the average base rent for stores closed during the first quarter of 2003.
Reported same-space sales per square foot for the rolling twelve months ended
March 31, 2003 were $293 per square foot. This represents a 0.3% decrease
compared to $294 per square foot for the rolling twelve months ended March 31,
2002. For the first quarter of 2003, same-space sales decreased by 6.1%, as
compared to the record high first quarter sales for the same period in 2002.
Same-space sales is defined as the weighted average sales per square foot
reported in space open for the full duration of the comparative periods. The
sales results are due, in part, to the severe winter during the first quarter of
2003 and the shift in the Easter holiday to the second quarter of 2003.
Investment Activities
In January 2003, Tanger acquired a 29,000 square foot, 100% leased expansion
located contiguous with its existing factory outlet center in Sevierville,
Tennessee. The purchase price was $4.7 million with an expected return of 10%.
Construction of an additional 35,000 square foot expansion of the center is
currently under way, with stores expected to open during the summer of 2003. The
cost of expansion is estimated to be $4.0 million with an expected return in
excess of 13%. Upon completion of the expansion, the Sevierville center will
total approximately 418,000 square feet.
Tanger is currently underway with constructing the second phase of our newly
opened, 100% leased center in Myrtle Beach, SC. The second phase totals 64,000
square feet and stores are expected to open during the summer of 2003. The
center, which was developed and is managed and leased by the Company, is owned
through a joint venture of which the Company owns a 50% interest. Accordingly,
the Company's capital investment for the second phase will be approximately $1.1
million with an expected return in excess of 20%.
Balance Sheet Summary
As of March 31, 2003, Tanger had a total market capitalization of approximately
$744 million, with $341 million of debt outstanding, equating to a 45.8%
debt-to-total market capitalization ratio. This compares favorably to a total
market capitalization of approximately $674 million with $360 million of debt
outstanding on March 31, 2002. The Company had a 53.3% debt-to-total market
capitalization ratio as of March 31, 2002. During the first quarter Tanger
reduced its debt outstanding by $3.9 million. As of March 31, 2003, the Company
had $19.3 million outstanding with $65.7 million available on its lines of
credit. The Company continues to improve its interest coverage ratio, which was
2.62 times for the first quarter of 2003, as compared to 2.35 times interest
coverage in the same period last year.
On May 2, 2003, Tanger announced it would call for redemption all of its
outstanding Depositary Shares representing Series A Cumulative Convertible
Redeemable Preferred Shares (NYSE: SKT-A) on June 20, 2003. The redemption price
will be $25.00 per Depositary Share, plus accrued and unpaid dividends, if any,
5
to, but not including, the redemption date. Prior to redemption, each Depositary
Share may be converted to .901 common shares at the option of the Depositary
Share holder until 5:00 p.m., Eastern Time, on June 17, 2003.
2003 FFO Per Share Guidance
Based on current market conditions, the strength and stability of its core
portfolio and the Company's ongoing development, expansion and acquisition
pipeline, Tanger currently believes its FFO for 2003 will range between $3.44
and $3.50 per share. Tanger currently expects 2003 FFO to range between $0.81 to
$0.83 per share for the second quarter, $0.87 to $0.89 per share for the third
quarter and $0.98 to $1.00 per share for the fourth quarter.
First Quarter Conference Call
Tanger will host a conference call to discuss its first quarter results for
analysts, investors and other interested parties on Tuesday, May 6, 2003, at
3:00 P.M. eastern time. To access the conference call, listeners should dial
1-877-277-5113 and request to be connected to the Tanger Factory Outlet Centers
First Quarter Financial Results call. Alternatively, the call will be webcast by
CCBN and can be accessed at Tanger Factory Outlet Centers, Inc.'s web site at
www.tangeroutlet.com, (click on "Corporate News").
A telephone replay of the call will be available from May 6, 2003 starting at
5:00 P.M eastern time through May 13, 2003, by dialing 1-800-642-1687
(conference ID # 9544838). Additionally, an online archive of the broadcast will
also be available through May 13, 2003.
About Tanger Factory Outlet Centers
Tanger Factory Outlet Centers, Inc. (NYSE: SKT), a fully integrated,
self-administered and self-managed publicly traded REIT, presently operates 34
centers in 21 states coast to coast, totaling approximately 6.2 million square
feet of gross leasable area. We are filing a Form 8-K with the Securities and
Exchange Commission that includes a supplemental information package for the
quarter ended December 31, 2002. For more information on Tanger Outlet Centers,
visit our web site at www.tangeroutlet.com.
This press release may contain forward-looking statements regarding our
re-merchandising strategy, the renewal and re-tenanting of space, tenant sales
and sales trends, interest rates, funds from operations and the development of
new centers. These forward-looking statements are subject to risks and
uncertainties. Actual results could differ materially from those projected due
to various factors including, but not limited to, the risks associated with
general economic and local real estate conditions, the availability and cost of
capital, our ability to lease our properties, our inability to collect rent due
to the bankruptcy or insolvency of tenants or otherwise, and competition. 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, 2002.
6
Geographic Diversification
As of March 31, 2003
- ------------------------------------------------------------------------------
State # of Centers GLA % of GLA
- --------------------- -------------------- --------------- -------------------
Georgia 4 950,590 17%
New York 1 729,238 13%
Texas 2 619,426 11%
Tennessee 2 477,412 8%
Michigan 2 437,651 8%
Missouri 1 277,494 5%
Iowa 1 277,230 5%
South Carolina (1) 1 260,033 5%
Pennsylvania 1 255,059 4%
Louisiana 1 245,199 4%
Florida 1 198,789 3%
North Carolina 2 187,702 3%
Arizona 1 184,768 3%
Indiana 1 141,051 3%
Minnesota 1 134,480 2%
California 1 105,950 2%
Maine 2 84,397 1%
Alabama 1 79,575 1%
New Hampshire 2 61,745 1%
West Virginia 1 49,252 1%
- --------------------- -------------------- --------------- -------------------
Total 29 5,757,041 100%
- --------------------- -------------------- --------------- -------------------
(1) Includes one center totaling 260,033 sq. ft. of which Tanger owns a 50%
interest through a joint venture arrangement.
7
Property Summary - Occupancy
- ----------------------------- --------------- -------------- -------------- --------------- -------------- --------------
% % % % %
Total GLA Occupied Occupied Occupied Occupied Occupied
Location 03/31/03 03/31/03 12/31/02 09/30/02 06/30/02 03/31/02
- ----------------------------- --------------- -------------- -------------- --------------- -------------- --------------
Riverhead, NY 729,238 98% 100% 99% 99% 98%
San Marcos, TX 441,936 100% 100% 98% 98% 97%
Sevierville, TN 382,854 100% 100% 100% 100% 100%
Commerce II, GA 342,556 93% 99% 96% 97% 95%
Howell, MI 325,231 99% 100% 100% n/a n/a
Branson, MO 277,494 97% 99% 100% 98% 94%
Williamsburg, IA 277,230 97% 100% 99% 98% 97%
Myrtle Beach, SC (1) 260,033 100% 100% 100% 100% n/a
Lancaster, PA 255,059 94% 98% 96% 96% 94%
Locust Grove, GA 248,854 99% 100% 100% 98% 100%
Gonzales, LA 245,199 97% 99% 98% 96% 97%
Fort Myers, FL 198,789 97% 99% 97% 93% 96%
Commerce I, GA 185,750 79% 90% 87% 90% 84%
Casa Grande, AZ 184,768 89% 96% 90% 89% 89%
Terrell, TX 177,490 96% 100% 100% 95% 96%
Dalton, GA 173,430 93% 98% 98% 96% 90%
Seymour, IN 141,051 74% 80% 80% 76% 73%
North Branch, MN 134,480 99% 100% 100% 100% 100%
West Branch, MI 112,420 95% 100% 100% 98% 100%
Barstow, CA 105,950 72% 62% 57% 57% 59%
Blowing Rock, NC 105,448 94% 100% 100% 100% 100%
Pigeon Forge, TN 94,558 95% 97% 94% 100% 100%
Nags Head, NC 82,254 100% 100% 100% 100% 100%
Boaz, AL 79,575 95% 97% 91% 93% 93%
Kittery I, ME 59,694 100% 100% 100% 100% 100%
LL Bean, NH 50,745 91% 100% 100% 100% 100%
Martinsburg, WV 49,252 61% 69% 51% 57% 73%
Kittery II, ME 24,703 100% 94% 94% 94% 94%
Clover, NH 11,000 100% 100% 100% 100% 100%
Bourne, MA n/a n/a n/a 100% 100% 100%
Ft Lauderdale, FL n/a n/a n/a n/a n/a 100%
- ----------------------------- --------------- -------------- -------------- --------------- -------------- --------------
Total 5,757,041 95% 98% 96% 96% 95%
- ----------------------------- --------------- -------------- -------------- --------------- -------------- --------------
[GRAPH APPEARS HERE]
'03/03 '12/02 '09/02 '06/02 '03/02 '12/01 '09/01 '06/01 '03/01
95% 98% 96% 96% 95% 96% 95% 94% 95%
Portfolio Weighted Average Occupancy at the End of Each Period
(1) Includes one center totaling 260,033 sq. ft. of which Tanger owns a 50%
interest through a joint venture arrangement.
8
Major Tenants
- -------------------------------------------------------------------------------
Ten Largest Tenants As of March 31, 2003 (1)
- -------------------------------------------------------------------------------
# of % of
Tenant Stores GLA Total GLA
- ------------------------------------------ -------- -------------- -----------
The Gap, Inc. 37 383,996 6.7%
Phillips-Van Heusen 70 318,664 5.5%
Liz Claiborne 38 312,655 5.4%
Reebok International 26 186,561 3.2%
Dress Barn, Inc. 20 143,512 2.5%
Sara Lee Corporation 32 123,040 2.1%
Brown Group Retailer 25 120,446 2.1%
Mikasa 15 120,086 2.1%
Polo Ralph Lauren 15 106,566 1.9%
VF Factory Outlet 4 105,697 1.8%
- ------------------------------------------- -------- -------------- -----------
Total of All Listed Above 282 1,921,223 33.3%
- ------------------------------------------- -------- -------------- -----------
(1) Includes one center totaling 260,033 sq. ft. of which Tanger owns a 50%
interest through a joint venture arrangement.
9
Lease Expirations as of March 31, 2003
Percentage of Total Gross Leasable Area (1)
[GRAPH APPEARS HERE]
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013+
10.00% 23.00% 16.00% 15.00% 16.00% 9.00% 3.00% 1.00% 2.00% 3.00% 2.00%
Percentage of Total Annualized Base Rent (1)
[GRAPH APPEARS HERE]
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013+
8.00% 21.00% 17.00% 16.00% 19.00% 9.00% 2.00% 1.00% 2.00% 3.00% 2.00%
(1) Includes one center totaling 260,033 sq. ft. of which Tanger owns a 50%
interest through a joint venture arrangement.
10
Leasing Activity
- ---------------------------------------------------- ------------- -------------- ------------- ------------ ------------
Year to
03/31/03 06/30/03 09/30/03 12/31/03 Date
- ---------------------------------------------------- ------------- -------------- ------------- ------------ ------------
Re-tenanted Space:
Number of leases 35 35
Gross leasable area 138,468 138,468
New base rent per square foot $16.89 $16.89
Prior base rent per square foot $16.38 $16.38
Percent increase in rent per square foot 3.1% 3.1%
Renewed Space:
Number of leases 117 117
Gross leasable area 538,506 538,506
New base rent per square foot $13.35 $13.35
Prior base rent per square foot $13.19 $13.19
Percent increase in rent per square foot 1.2% 1.2%
Total Re-tenanted and Renewed Space:
Number of leases 152 152
Gross leasable area 676,974 676,974
New base rent per square foot $14.07 $14.07
Prior base rent per square foot $13.84 $13.84
Percent increase in rent per square foot 1.7% 1.7%
- ---------------------------------------------------- ------------- -------------- ------------- ------------ ------------
11
Consolidated Balance Sheets (dollars in thousands)
- ---------------------------------------------------- ------------- ------------ ------------- ------------- ------------
03/31/03 12/31/02 09/30/03 06/30/02 03/31/02
- ---------------------------------------------------- ------------- ------------ ------------- ------------- ------------
Assets
Rental Property
Land $51,274 $51,274 $52,345 $50,176 $60,196
Buildings 581,766 571,125 571,826 535,438 541,010
- ---------------------------------------------------- ------------- ------------ ------------- ------------- ------------
Total rental property 633,040 622,399 624,171 585,614 601,206
Accumulated depreciation (180,996) (174,199) (168,327) (161,612) (155,614)
- ---------------------------------------------------- ------------- ------------ ------------- ------------- ------------
Total rental property - net 452,044 448,200 455,844 424,002 445,592
Cash 209 1,072 209 204 210
Deferred charges - net 9,648 10,104 10,494 10,465 11,084
Other assets 13,424 18,299 13,543 30,783 12,183
- ---------------------------------------------------- ------------- ------------ ------------- ------------- ------------
Total assets $475,325 $477,675 $480,090 $465,454 $469,069
- ---------------------------------------------------- ------------- ------------ ------------- ------------- ------------
Liabilities & Shareholders' Equity
Liabilities
Debt
Senior, unsecured notes $148,009 $150,109 $155,609 $155,609 $155,609
Mortgages payable 173,811 174,421 175,018 175,603 176,176
Lines of credit 19,319 20,475 16,269 26,625 27,786
- ---------------------------------------------------- ------------- ------------ ------------- ------------- ------------
Total debt 341,139 345,005 346,896 357,837 359,571
Construction trade payables 7,560 3,310 4,041 4,141 3,934
Accounts payable & accruals 12,070 15,095 14,743 12,943 11,278
- ---------------------------------------------------- ------------- ------------ ------------- ------------- ------------
Total liabilities 360,769 363,410 365,680 374,921 374,783
- ---------------------------------------------------- ------------- ------------ ------------- ------------- ------------
Minority interest 23,245 23,630 23,727 19,326 20,386
- ---------------------------------------------------- ------------- ------------ ------------- ------------- ------------
Shareholders' equity
Preferred shares 1 1 1 1 1
Common shares 93 90 90 80 80
Paid in capital 165,641 161,192 160,589 138,177 137,684
Distributions in excess of net income (74,324) (70,485) (69,672) (66,619) (63,370)
Accum. other comprehensive loss (100) (163) (325) (432) (495)
- ---------------------------------------------------- ------------- ------------ ------------- ------------- ------------
Total shareholders' equity 91,311 90,635 90,683 71,207 73,900
- ---------------------------------------------------- ------------- ------------ ------------- ------------- ------------
Total liabilities & shareholders' equity $475,325 $477,675 $480,090 $465,454 $469,069
- ---------------------------------------------------- ------------- ------------ ------------- ------------- ------------
12
Consolidated Statements of Operations (dollars and shares in thousands)
- --------------------------------------- ----------------------------------------------------------------- ------------------------
Three Months Ended YTD
- --------------------------------------- ----------------------------------------------------------------- ------------------------
03/03 12/02 09/02 06/02 03/02 03/03 03/02
- --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Revenues
Base rentals $19,661 $20,545 $18,724 $18,417 $18,066 $19,661 $18,066
Percentage rentals 395 1,602 778 581 597 395 597
Expense reimbursements 8,450 8,618 7,375 7,297 7,260 8,450 7,260
Other income 671 1,116 1,044 583 564 671 564
- --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Total revenues 29,177 31,881 27,921 26,878 26,487 29,177 26,487
- --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Expenses
Property operating 10,017 10,217 8,616 8,639 8,611 10,017 8,611
General & administrative 2,430 2,237 2,623 2,092 2,275 2,430 2,275
Interest 6,724 7,042 7,171 7,118 7,129 6,724 7,129
Depreciation & amortization 7,329 7,406 7,184 7,099 7,066 7,329 7,066
- --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Total expenses 26,500 26,902 25,594 24,948 25,081 26,500 25,081
- --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Income before equity in earnings
of unconsolidated joint ventures,
minority interest, discontinued
operations and extraordinary item 2,677 4,979 2,327 1,930 1,406 2,677 1,406
Equity in earnings of unconsolidated
joint ventures 92 142 317 (75) 8 92 8
Minority interest (578) (1,175) (591) (388) (252) (578) (252)
- --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Income from continuing operations 2,191 3,946 2,053 1,467 1,162 2,191 1,162
Discontinued operations (1) -- 1,214 255 627 283 -- 283
- --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Income before extraordinary item 2,191 5,160 2,308 2,094 1,445 2,191 1,445
Extraordinary item - loss on early
extinguishments of debt -- -- -- -- -- -- --
- --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Net income 2,191 5,160 2,308 2,094 1,445 2,191 1,445
Less applicable preferred share
dividends (443) (442) (443) (442) (444) (443) (444)
- --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Net income available to common
shareholders $1,748 $4,718 $1,865 $1,652 $1,001 $1,748 $1,001
- --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Basic earnings per common share:
- --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Income from continuing operations $.19 $.39 $.19 $.13 $.09 $.19 $.09
- --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Net income $.19 $.52 $.22 $.21 $.13 $.19 $.13
- --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Diluted earnings per common share:
- --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Income from continuing operations $.19 $.38 $.19 $.12 $.09 $.19 $.09
- --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Net income $.19 $.51 $.22 $.20 $.12 $.19 $.12
- --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Weighted average common shares:
Basic 9,181 9,047 8,269 8,015 7,948 9,181 7,948
Diluted 9,408 9,279 8,490 8,229 8,028 9,408 8,028
- --------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
13
FFO and FAD Analysis (dollars and shares in thousands)
- ----------------------------------------- ---------------------------------------------------------------- ------------------------
Three Months Ended YTD
- ----------------------------------------- ---------------------------------------------------------------- ------------------------
03/03 12/02 09/02 06/02 03/02 03/03 3/02
- ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ----------
Funds from operations:
Net income $2,191 $5,160 $2,308 $2,094 $1,445 $2,191 $1,445
Adjusted for -
Extraordinary item -- -- -- -- -- --
Minority interest 578 1,175 591 388 252 578 252
Minority interest, depreciation
and amortization in
discontinued operations -- 417 110 336 237 -- 237
Depreciation and amortization
uniquely significant to
real estate - wholly owned 7,255 7,336 7,107 7,025 6,993 7,255 6,993
Depreciation and amortization
uniquely significant to
real estate - joint ventures 254 255 168 -- -- 254 --
Gain on sale of real estate -- (1,242) -- (460) -- -- --
- ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ----------
Funds from operations $10,278 $13,101 $10,284 $9,383 $8,927 $10,278 $8,927
- ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ----------
- ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ----------
Funds from operations per share $.78 $1.01 $.84 $.78 $.76 $.78 $.76
- ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ----------
Funds available for distribution:
Funds from operations $10,278 $13,101 $10,284 $9,383 $8,927 $10,278 $8,927
Plus -
Corporate depreciation
excluded above 74 71 77 75 73 74 73
Amortization of finance costs 317 312 313 289 303 317 303
Straight line rent adjustment 57 55 91 60 41 57 41
Less -
2nd generation tenant allowances (1,417) (455) (136) (429) (1,206) (1,417) (1,206)
Capital improvements (1,045) (737) (899) (578) (370) (1,045) (370)
- ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ----------
Funds available for distribution $8,264 $12,347 $9,730 $8,800 $7,768 $8,264 $7,768
- ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ----------
- ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ----------
Funds available for distribution
per share $.63 $.95 $.79 $.73 $.66 $.63 $.66
- ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ----------
- ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ----------
Dividends paid per share $.6125 $.6125 $.6125 $.6125 $.61 $.6125 $.61
- ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ----------
- ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ----------
FFO payout ratio 79% 61% 73% 79% 80% 79% 80%
- ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ----------
- ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ----------
FAD payout ratio 97% 64% 78% 84% 92% 97% 92%
Diluted weighted average common
shares 13,164 13,035 12,245 11,984 11,787 13,164 11,787
- ----------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------- ----------
14
Per Weighted Average Gross Leasable Area (GLA) Analysis
- -------------------------------------------- ------------------------------------------------------------- ------------------------
Three Months Ended YTD
- -------------------------------------------- ------------------------------------------------------------- ------------------------
03/03 12/02 09/02 06/02 03/02 03/03 03/02
- -------------------------------------------- ----------- ----------- ----------- ------------ ------------ ------------ -----------
GLA open at end of period -
Wholly owned (000's) 5,497 5,469 5,493 5,167 5,332 5,497 5,332
Partially owned (000's) (1) 260 260 260 260 -- 260 --
Managed properties (000's) 457 457 434 105 105 457 105
Total GLA open at end of period 6,214 6,186 6,187 5,532 5,437 6,214 5,437
Weighted average GLA (000's) (2) 5,492 5,469 5,222 5,144 5,144 5,492 5,144
End of period occupancy (1) 95% 98% 96% 96% 95% 95% 95%
PER SQUARE FOOT
===============
Revenues
Base rentals $3.58 $3.76 $3.59 $3.58 $3.51 $3.58 $3.51
Percentage rentals .07 .29 .15 .11 .12 .07 .12
Expense reimbursements 1.54 1.58 1.42 1.41 1.54 1.41
1.41
Other income .12 .20 .20 .11 .11 .12 .11
- -------------------------------------------- ----------- ----------- ----------- ------------ ------------ ------------ -----------
Total revenues 5.31 5.83 5.35 5.22 5.15 5.31 5.15
- -------------------------------------------- ----------- ----------- ----------- ------------ ------------ ------------ -----------
Expenses
Property operating 1.82 1.87 1.65 1.68 1.67 1.82 1.67
General & administrative .44 .41 .50 .41 .44 .44 .44
Interest 1.22 1.29 1.37 1.38 1.39 1.22 1.39
Depreciation & amortization 1.33 1.35 1.38 1.38 1.38 1.33 1.38
- -------------------------------------------- ----------- ----------- ----------- ------------ ------------ ------------ -----------
Total expenses 4.81 4.92 4.90 4.85 4.88 4.81 4.88
- -------------------------------------------- ----------- ----------- ----------- ------------ ------------ ------------ -----------
Income before equity in earnings of
unconsolidated joint ventures, minority
interest, discontinued operations and
extraordinary item $.50 $.91 $.45 $.37 $.27 $.50 $.27
- -------------------------------------------- ----------- ----------- ----------- ------------ ------------ ------------ -----------
Total revenues less property operating and
general & administrative expenses ("NOI") $3.05 $3.55 $3.19 $3.12 $3.03 $3.05 $3.03
- -------------------------------------------- ----------- ----------- ----------- ------------ ------------ ------------ -----------
Funds from operations $1.87 $2.40 $1.97 $1.82 $1.74 $1.87 $1.74
- -------------------------------------------- ----------- ----------- ----------- ------------ ------------ ------------ -----------
<FN>
(1) Includes one center totaling 260,033 sq. ft. of which Tanger owns a 50%
interest through a joint venture arrangement.
(2) Represents GLA of wholly owned 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.
</FN>
15
Joint Venture Information
Summary Balance Sheets (dollars in thousands)
- ---------------------------------------------------- ------------- ------------ ------------- ------------- ------------
03/31/03 12/31/02 09/30/02 06/30/02 3/31/02
- ---------------------------------------------------- ------------- ------------ ------------- ------------- ------------
Assets
Investment properties at cost - net $34,670 $32,153 $31,560 $28,968 $18,445
Cash and cash equivalents 100 514 510 226 57
Deferred charges - net 1,790 1,751 1,676 1,591 1,470
Other assets 1,500 1,491 1,503 1,384 790
- ---------------------------------------------------- ------------- ------------ ------------- ------------- ------------
Total assets $38,060 $35,909 $35,249 $32,169 $20,762
- ---------------------------------------------------- ------------- ------------ ------------- ------------- ------------
Liabilities & Owners' Equity
Mortgage payable $25,705 $25,513 $21,555 $18,058 $8,345
Construction trade payables 1,729 1,644 4,222 3,530 3,420
Accounts payable & other liabilities 868 522 756 1,927 293
- ---------------------------------------------------- ------------- ------------ ------------- ------------- ------------
Total liabilities 28,302 27,679 26,533 23,515 12,058
Owners' equity 9,758 8,230 8,716 8,654 8,704
- ---------------------------------------------------- ------------- ------------ ------------- ------------- ------------
Total liabilities & owners' equity $38,060 $35,909 $35,249 $32,169 $20,762
- ---------------------------------------------------- ------------- ------------ ------------- ------------- ------------
Summary Statements of Operations (dollars in thousands)
- ------------------------------------------ --------------------------------------------------------------- ------------------------
Three Months Ended YTD
- ------------------------------------------ --------------------------------------------------------------- ------------------------
03/03 12/02 09/02 06/02 03/02 03/03 03/02
----------------------------------------- ----------- ------------ ------------ ------------ ------------ ------------ -----------
Revenues $1,727 $1,700 $2,178 $225 $16 $1,727 $16
- ------------------------------------------ ----------- ------------ ------------ ------------ ------------ ------------ -----------
Expenses
Property operating 704 609 930 385 --- 704 ---
General & administrative 17 13 --- --- --- 17 ---
Interest 325 322 256 --- --- 325 ---
Depreciation & amortization 528 536 348 --- --- 528 ---
- ------------------------------------------ ----------- ------------ ------------ ------------ ------------ ------------ -----------
Total expenses 1,574 1,480 1,534 385 --- 1,574 ---
- ------------------------------------------ ----------- ------------ ------------ ------------ ------------ ------------ -----------
Net income $153 $220 $644 $(160) $16 $153 $16
- ------------------------------------------ ----------- ------------ ------------ ------------ ------------ ------------ -----------
Tanger Factory Outlet Centers, Inc.
Share of:
- ------------------------------------------ ----------- ------------ ------------ ------------ ------------ ------------ -----------
Total revenues less property
operating and general &
administrative expenses ("NOI") $503 $539 $624 $(80) $8 $503 $8
Net income $92 $142 $317 $(75) $8 $92 $8
Depreciation (real estate related) $254 $255 $168 --- --- $254 ---
- ------------------------------------------ ----------- ------------ ------------ ------------ ------------ ------------ -----------
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Debt Outstanding Summary (dollars in thousands)
- --------------------------------------------------------------------------------------------------------
As of March 31, 2003
- --------------------------------------------------------------------------------------------------------
Principal Interest Maturity
Balance Rate Date
- ----------------------------------------- -------------- ------------------------------ ----------------
Mortgage debt
Lancaster, PA $14,435 9.770% 04/10/05
Commerce I, GA 8,173 9.125% 09/10/05
Branson, MO 24,000 Libor + 1.75% 03/26/06
Commerce II, GA 29,500 Libor + 1.75% 03/26/06
Dalton, GA 11,082 7.875% 04/01/09
Kittery I, ME 6,306 7.875% 04/01/09
San Marcos I, TX 18,823 7.875% 04/01/09
San Marcos II, TX 18,966 7.980% 04/01/09
West Branch, MI 7,035 7.875% 04/01/09
Williamsburg, IA 19,340 7.875% 04/01/09
Blowing Rock, NC 9,622 8.860% 09/01/10
Nags Head, NC 6,529 8.860% 09/01/10
- ----------------------------------------- -------------- ------------------------------ ----------------
Total mortgage debt 173,811
- ----------------------------------------- -------------- ------------------------------ ----------------
Corporate debt
Unsecured credit facilities 19,319 Libor + (1.60% to 1.75%) 06/30/04
1997 Senior unsecured notes 48,009 7.875% 10/24/04
2001 Senior unsecured notes 100,000 9.125% 02/15/08
- ----------------------------------------- -------------- ------------------------------ ----------------
Total corporate debt 167,328
- ----------------------------------------- -------------- ------------------------------ ----------------
Total debt $341,139
- ----------------------------------------- -------------- ------------------------------ ----------------
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Future Scheduled Principal Payments (dollars in thousands)
- ------------------------------------------------------------------------
As of March 31, 2003
- ------------------------------------------------------------------------
Scheduled Total
Amortization Balloon Scheduled
Year Payments Payments Payments
- ---------------------- ----------------- --------------- ---------------
2003 $1,909 -- $1,909
2004 (1) 2,740 67,328 70,068
2005 2,524 20,576 23,100
2006 2,168 53,500 55,668
2007 2,349 -- 2,349
2008 2,545 100,000 102,545
2009 967 70,474 71,441
2010 181 13,878 14,059
2011 -- -- --
2012 -- -- --
2013 & thereafter -- -- --
- ---------------------- ----------------- --------------- ---------------
$15,383 $325,756 $341,139
- ---------------------- ----------------- --------------- ---------------
(1) Balloon payments in 2004 include $19,319 relating to amounts outstanding
under the unsecured credit facilities.
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Investor Information
Tanger Outlet Centers welcomes any questions or comments from shareholders,
analysts, investment managers, media and prospective investors. Please address
all inquiries to our Investor Relations Department.
Tanger Factory Outlet Centers, Inc.
Investor Relations
Phone: (336) 292-3010 ext 6865
Fax: (336) 297-0931
e-mail: tangermail@tangeroutlet.com
---------------------------
Mail: Tanger Factory Outlet Centers, Inc.
3200 Northline Avenue
Suite 360
Greensboro, NC 27408
19