Tanger Factory Outlet Centers, Inc.
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/04
Tanger Factory Outlet Centers, Inc.
Supplemental Operating and Financial Data
December 31, 2004
1
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, 2003 and December 31,
2004 (when available).
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
Portfolio Data:
Geographic Diversification.................................................4
Property Summary ..........................................................5
Portfolio Occupancy at the End of Each Period..............................6
Major Tenants .............................................................7
Lease Expirations as of December 31, 2004..................................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
Future Scheduled Principal Payments.......................................16
Investor Information........................................................17
3
Geographic Diversification
As of December 31, 2004
State # of Centers GLA % of GLA
South Carolina (1) (2) 3 1,222,474 14%
Georgia 3 775,760 9%
New York 1 729,238 8%
Texas 2 619,976 7%
Alabama (2) 2 615,250 7%
Delaware (2) 1 568,873 7%
Tennessee 2 513,732 6%
Michigan 2 437,051 5%
Utah (2) 1 300,602 3%
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 1 245,199 3%
New Hampshire (2) 1 227,998 3%
Florida 1 198,789 2%
North Carolina 2 187,510 2%
Indiana 1 141,051 2%
Minnesota 1 134,480 2%
California 1 108,950 1%
Maine 2 84,313 1%
- ------------------------------------------- ------------------- ----------------
Total 33 8,739,356 100%
- ------------------------------------------- ------------------- ----------------
(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.
4
Property Summary - Occupancy at End of Each Period Shown
% % % % %
Total GLA Occupied Occupied Occupied Occupied Occupied
Location 12/31/04 12/31/04 09/31/04 06/30/04 3/31/04 12/31/03
Riverhead, NY 729,238 99% 99% 99% 99% 100%
Rehoboth, DE (2) 568,873 99% 99% 99% 99% 99%
Foley, AL (2) 535,675 99% 99% 99% 97% 99%
San Marcos, TX 442,486 100% 97% 96% 92% 100%
Myrtle Beach, SC (2) 427,388 92% 96% 97% 96% 96%
Sevierville, TN 419,038 100% 100% 100% 100% 100%
Myrtle Beach, SC (1) 401,992 99% 100% 100% 100% 100%
Hilton Head, SC (2) 393,094 92% 91% 89% 88% 89%
Commerce II, GA 342,556 99% 98% 97% 92% 96%
Howell, MI 324,631 100% 100% 100% 100% 100%
Park City, UT (2) 300,602 97% 97% 97% 95% 96%
Westbrook, CT (2) 291,051 93% 93% 90% 89% 93%
Branson, MO 277,883 100% 100% 100% 97% 100%
Williamsburg, IA 277,230 100% 97% 96% 96% 96%
Lincoln City, OR (2) 270,280 96% 95% 93% 93% 92%
Tuscola, IL (2) 256,514 78% 76% 77% 78% 78%
Lancaster, PA 255,152 100% 99% 96% 95% 100%
Locust Grove, GA 247,454 100% 98% 99% 98% 100%
Gonzales, LA 245,199 100% 97% 93% 93% 99%
Tilton, NH (2) 227,998 99% 98% 98% 96% 96%
Fort Myers, FL 198,789 91% 87% 82% 86% 94%
Commerce I, GA 185,750 82% 68% 68% 69% 77%
Terrell, TX 177,490 100% 97% 97% 96% 100%
Seymour, IN 141,051 89% 85% 82% 80% 77%
North Branch, MN 134,480 100% 100% 99% 100% 100%
West Branch, MI 112,420 98% 100% 100% 100% 100%
Barstow, CA 108,950 100% 100% 95% 88% 87%
- -
Blowing Rock, NC 105,332 100% 100% 100% 93% 100%
Pigeon Forge, TN 94,694 96% 96% 93% 88% 93%
Nags Head, NC 82,178 100% 100% 100% 100% 100%
Boaz, AL 79,575 95% 95% 97% 97% 97%
Kittery I, ME 59,694 100% 100% 100% 100% 100%
Kittery II, ME 24,619 100% 100% 100% 100% 100%
Dalton, GA n/a n/a n/a 79% 79% 100%
LL Bean, NH n/a n/a n/a n/a 100% 100%
Clover, NH n/a n/a n/a n/a 100% 100%
- -------------------------------------- -------------- -------------- ------------- ------------ ------------
Total 8,739,356 97% 96% 95% 94% 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.
5
Portfolio Occupancy at the End of Each Period (1)
12/04 09/04 06/04 03/04 12/03 09/03 06/03 03/03 12/02
97% 96% 95% 94% 96% 95% 96% 95% 98%
(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.
6
Major Tenants (1)
Ten Largest Tenants As of December 31, 2004 (1)
# of % of
Tenant Stores GLA Total GLA
The Gap, Inc. 58 584,810 6.7%
Phillips-Van Heusen 99 471,476 5.4%
Liz Claiborne 44 366,629 4.2%
VF Factory Outlet 37 305,496 3.5%
Reebok International 32 245,802 2.8%
Dress Barn, Inc. 30 220,119 2.5%
Retail Brand Alliance, Inc. 35 205,985 2.3%
Polo Ralph Lauren 24 195,069 2.2%
Jones Retail Corporation 65 184,977 2.1%
Brown Group Retail, Inc. 38 173,680 2.0%
Total of All Listed Above 462 2,954,043 33.7%
(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.
7
Lease Expirations as of December 31, 2004
Percentage of Total Gross Leasable Area (1)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015+
17.00% 21.00% 18.00% 15.00% 14.00% 6.00% 3.00% 3.00% 1.00% 1.00% 1.00%
Percentage of Total Annualized Base Rent (1)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015+
15.00% 21.00% 19.00% 16.00% 14.00% 7.00% 3.00% 2.00% 1.00% 1.00% 1.00%
(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.
8
Leasing Activity (1)
Prior
Year to Year to
03/31/04 06/30/04 09/30/04 12/31/04 Date Date
Re-tenanted Space:
Number of leases 31 39 29 10 109 81
Gross leasable area 130,808 151,154 114,227 31,223 427,412 272,015
New base rent per square foot $17.09 $15.95 $19.21 $17.30 $17.27 $17.13
Prior base rent per square foot $16.42 $15.91 $17.63 $14.68 $16.43 $16.47
Percent increase in rent per square foot 4.1% 0.3% 9.0% 17.8% 5.1% 4.1%
Renewed Space:
Number of leases 169 71 88 34 362 196
Gross leasable area 755,832 284,953 411,483 118,297 1,570,565 853,732
New base rent per square foot $14.96 $15.02 $13.70 $11.72 $14.40 $13.32
Prior base rent per square foot $13.86 $14.10 $13.42 $11.78 $13.63 $13.29
Percent increase in rent per square foot 7.9% 6.5% 2.1% (0.5%) 5.6% 0.2%
Total Re-tenanted and Renewed Space:
Number of leases 200 110 117 44 471 277
Gross leasable area 886,640 436,107 525,710 149,520 1,997,977 1,125,747
New base rent per square foot $15.27 $15.34 $14.90 $12.89 $15.01 $14.24
Prior base rent per square foot $14.24 $14.73 $14.33 $12.39 $14.23 $14.06
Percent increase in rent per square foot 7.2% 4.1% 4.0% 4.0% 5.5% 1.3%
- ---------------------------------------------- ------------- -------------- ------------- ------------ ------------ ----------
Prior
Year to Year to
03/31/04 06/30/04 09/30/04 12/31/04 Date Date
Stores Opening:
Number of stores 23 43 28 32 126 120
Gross leasable area 84,162 148,549 90,760 113,103 436,574 393,747
Base rent per square foot $17.26 $18.12 $16.24 $19.77 $17.99 $18.83
Stores Closing:
Number of stores 52 19 25 19 115 104
Gross leasable area 170,909 58,131 107,210 66,070 402,320 337,222
Base rent per square foot $16.43 $14.91 $16.76 $14.92 $16.05 $16.86
Percent increase in rent per square foot 5.1% 21.5% (3.1%) 32.5% 12.1% 11.7%
- ---------------------------------------------- ------------- -------------- ------------- ------------ ------------ -------------
(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.
9
Consolidated Balance Sheets (dollars in thousands)
12/31/04 09/30/04 06/30/04 03/31/04 12/31/03
Assets
Rental property
Land $113,830 $113,869 $115,541 $118,933 $119,833
Buildings 963,563 956,109 965,394 965,948 958,720
- -------------------------------------------------- -------------- --------------- -------------- -------------- ---------------
Total rental property 1,077,393 1,069,978 1,080,935 1,084,881 1,078,553
Accumulated depreciation (224,622) (215,172) (209,359) (202,454) (192,698)
- -------------------------------------------------- -------------- --------------- -------------- -------------- ---------------
Total rental property - net 852,771 854,806 871,576 882,427 885,855
Cash 4,103 27,135 8,694 10,781 9,836
Deferred charges - net 58,851 60,958 64,747 67,114 68,568
Other assets 20,653 19,595 26,963 19,565 23,178
- -------------------------------------------------- -------------- --------------- -------------- -------------- ---------------
Total assets $936,378 $962,494 $971,980 $979,887 $987,437
- -------------------------------------------------- -------------- --------------- -------------- -------------- ---------------
Liabilities, minority interests &
shareholders' equity
Liabilities
Debt
Senior, unsecured notes $100,000 $147,509 $147,509 $147,509 $147,509
Mortgages payable 308,342 310,483 366,065 368,087 370,160
Unsecured note 53,500 53,500 -- -- --
Lines of credit 26,165 -- -- 4,825 22,650
- -------------------------------------------------- -------------- --------------- -------------- -------------- ---------------
Total debt 488,007 511,492 513,574 520,421 540,319
Construction trade payables 11,918 10,361 6,300 5,816 4,345
Accounts payable & accruals 17,026 17,488 18,579 18,507 18,025
- -------------------------------------------------- -------------- --------------- -------------- -------------- ---------------
Total liabilities 516,951 539,341 538,453 544,744 562,689
- -------------------------------------------------- -------------- --------------- -------------- -------------- ---------------
Minority interests
Consolidated joint venture 222,673 221,400 220,225 220,337 218,148
Operating partnership 35,621 36,533 38,731 39,524 39,182
- -------------------------------------------------- -------------- --------------- -------------- -------------- ---------------
Total minority interests 258,294 257,933 258,956 259,861 257,330
- -------------------------------------------------- -------------- --------------- -------------- -------------- ---------------
Shareholders' equity
Common shares 274 274 274 270 260
Paid in capital 274,340 274,286 272,322 264,952 249,940
Distributions in excess of net income (109,506) (105,116) (94,603) (89,916) (82,737)
Deferred compensation (3,975) (4,224) (3,406) -- --
Accum. other comprehensive loss -- -- (16) (24) (45)
- -------------------------------------------------- -------------- --------------- -------------- -------------- ---------------
Total shareholders' equity 161,133 165,220 174,571 175,282 167,418
- -------------------------------------------------- -------------- --------------- -------------- -------------- ---------------
Total liabilities, minority interests &
shareholders' equity $936,378 $962,494 $971,980 $979,887 $987,437
- -------------------------------------------------- -------------- --------------- -------------- -------------- ---------------
10
Consolidated Statements of Operations (dollars and shares in thousands)
Three Months Ended YTD
12/04 09/04 06/04 03/04 12/03 12/04 12/03
Revenues
Base rentals $33,504 $32,879 $32,041 $31,460 $21,783 $129,884 $ 78,319
Percentage rentals 2,380 1,289 958 711 1,462 5,338 3,179
Expense reimbursements 14,629 13,060 13,010 11,886 8,972 52,585 33,053
Other income 1,692 1,816 2,388 850 1,033 6,746 3,508
- ---------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ -------------
Total revenues 52,205 49,044 48,397 44,907 33,250 194,553 118,059
- ---------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ -------------
Expenses
Property operating 16,664 14,953 14,719 13,423 10,496 59,759 38,968
General & administrative 3,063 3,346 3,254 3,157 2,186 12,820 9,551
Depreciation & amortization 12,292 14,042 12,955 12,157 7,870 51,446 28,231
- ---------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ -------------
Total expenses 32,019 32,341 30,928 28,737 20,552 124,025 76,750
- ---------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ -------------
Operating income 20,186 16,703 17,469 16,170 12,698 70,528 41,309
Interest expense 8,433 8,919 8,901 8,864 6,779 35,117 26,486
- ---------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ -------------
Income before equity in earnings
of unconsolidated joint ventures,
minority interests and discontinued
operations 11,753 7,784 8,568 7,306 5,919 35,411 14,823
Equity in earnings of unconsolidated
joint ventures 243 359 274 166 180 1,042 819
Minority interests:
Consolidated joint venture (6,734) (7,198) (6,619) (6,593) (941) (27,144) (941)
Operating partnership (958) (175) (408) (160) (1,114) (1,701) (3,169)
- ---------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ -------------
Income from continuing operations 4,304 770 1,815 719 4,044 7,608 11,532
Discontinued operations (1) -- (2,785) 1,930 293 787 (562) 1,317
- ---------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ -------------
Net income 4,304 (2,015) 3,745 1,012 4,831 7,046 12,849
Less applicable preferred share
dividends -- -- -- -- -- -- (806)
- ---------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ -------------
Net income available to common
shareholders $ 4,304 $ (2,015) $ 3,745 $ 1,012 $ 4,831 $ 7,046 $ 12,043
- ---------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ -------------
Basic earnings per common share:
- ---------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ -------------
Income from continuing operations $ .16 $ .03 $.07 $.03 $.18 $.28 $.53
- ---------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ -------------
Net income $ .16 $(.07) $.14 $.04 $.22 $.26 $.60
- ---------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ -------------
Diluted earnings per common share:
- ---------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ -------------
Income from continuing operations $ .16 $ .03 $.07 $.03 $.18 $.28 $.52
- ---------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ -------------
Net income $ .16 $(.07) $.14 $.04 $.22 $.26 $.59
- ---------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ -------------
Weighted average common shares:
Basic 27,266 27,224 27,008 26,674 22,015 27,044 20,103
Diluted 27,520 27,366 27,188 26,976 22,366 27,261 20,566
- ---------------------------------------- ------------ ------------ ------------ ------------ ------------ ------------ -------------
(1) In accordance with SFAS No. 144 "Accounting for the Impairment or Disposal
of Long Lived Assets", the results of operations for properties sold,
including any gain or loss on such sales have been reported above as
discontinued operations for both the current and prior periods presented.
11
FFO and FAD Analysis (dollars and shares in thousands)
Three Months Ended YTD
12/04 09/04 06/04 03/04 12/03 12/04 12/03
Funds from operations:
Net income $ 4,304 $(2,015) $3,745 $1,012 $4,831 $7,046 $12,849
Adjusted for -
Minority interest in operating
partnership 958 175 408 160 1,114 1,701 3,169
Minority interest adjustment
consolidated joint venture (198) 314 (329) 33 (33) (180) (33)
Minority interest, depreciation
and amortization in
discontinued operations -- (518) 662 289 492 433 1,847
Depreciation and amortization
uniquely significant to
real estate - wholly owned 12,239 13,986 12,900 12,099 7,808 51,224 27,959
Depreciation and amortization
uniquely significant to
real estate - joint ventures 379 351 304 300 294 1,334 1,101
(Gain) loss on sale of real estate -- 3,544 (2,084) -- (588) 1,460 147
- ---------------------------------------- ------------ ------------ ------------ ------------ ------------- ------------ ------------
Funds from operations $17,682 $15,837 $15,606 $13,893 $13,918 $63,018 $47,039
- ---------------------------------------- ------------ ------------ ------------ ------------ ------------- ------------ ------------
- ---------------------------------------- ------------ ------------ ------------ ------------ ------------- ------------ ------------
Funds from operations per share $.53 $.47 $.47 $.42 $.49 $1.89 $1.72
- ---------------------------------------- ------------ ------------ ------------ ------------ ------------- ------------ ------------
Funds available for distribution:
Funds from operations $17,682 $15,837 $15,606 $13,893 $13,918 $63,018 $47,039
Adjusted For -
Corporate depreciation
excluded above 53 56 55 58 60 222 271
Amortization of finance costs 350 383 365 367 354 1,465 1,312
Amortization of share compensation 237 236 989 14 25 1,476 102
Straight line rent adjustment (90) (81) (134) (84) 2 (389) 149
Below market rent adjustment (418) (277) (310) (60) (37) (1,065) (37)
Market rate interest adjustment (631) (634) (635) (610) (149) (2,506) (149)
2nd generation tenant allowances (2,839) (1,413) (1,595) (1,521) (1,457) (7,368) (5,121)
Capital improvements (2,080) (1,583) (2,047) (1,335) (1,796) (7,045) (4,650)
- ---------------------------------------- ------------ ------------ ------------ ------------ ------------- ------------ ------------
Funds available for distribution $12,264 $12,523 $12,294 $10,722 $10,920 $47,804 $38,916
- ---------------------------------------- ------------ ------------ ------------ ------------ ------------- ------------ ------------
Funds available for distribution
per share $.37 $.37 $.37 $.32 $.38 $1.43 $1.43
- ---------------------------------------- ------------ ------------ ------------ ------------ ------------- ------------ ------------
Dividends paid per share $.3125 $.3125 $.3125 $.3075 $.3075 $1.245 $1.229
- ---------------------------------------- ------------ ------------ ------------ ------------ ------------- ------------ ------------
- ---------------------------------------- ------------ ------------ ------------ ------------ ------------- ------------ ------------
FFO payout ratio 59% 66% 66% 73% 63% 66% 71%
- ---------------------------------------- ------------ ------------ ------------ ------------ ------------- ------------ ------------
FAD payout ratio 84% 84% 84% 96% 81% 87% 86%
Diluted weighted average common
shares 33,587 33,432 33,254 33,042 28,433 33,328 27,283
- ---------------------------------------- ------------ ------------ ------------ ------------ ------------- ------------ ------------
12
Per Weighted Average Gross Leasable Area (GLA) Analysis
Three Months Ended YTD
12/04 09/04 06/04 03/04 12/03 12/04 12/03
GLA open at end of period - (000's)
Wholly owned 5,066 5,066 5,240 5,302 5,299 5,066 5,299
Partially owned consolidated (1) 3,271 3,271 3,273 3,273 3,273 3,271 3,273
Partially owned unconsolidated(2) 402 391 374 324 324 402 324
Managed properties 105 432 434 434 434 105 434
Total GLA open at end of period 8,844 9,160 9,321 9,333 9,330 8,844 9,330
Weighted average GLA (000's) (3) 8,337 8,338 8,339 8,339 5,526 8,338 5,158
End of period occupancy (1) (2) 97% 96% 95% 94% 96% 97% 96%
PER SQUARE FOOT
Revenues
Base rentals $4.02 $3.95 $3.84 $3.77 $3.94 $15.58 $15.18
Percentage rentals .29 .15 .11 .09 .27 .64 .62
Expense reimbursements 1.75 1.56 1.56 1.43 1.62 6.30 6.41
Other income .20 .22 .29 .10 .19 .81 .68
- -------------------------------------------- ----------- ------------ ------------ ------------ ------------ ------------ ----------
Total revenues 6.26 5.88 5.80 5.39 6.02 23.33 22.89
- -------------------------------------------- ----------- ------------ ------------ ------------ ------------ ------------ ----------
Expenses
Property operating 2.00 1.79 1.77 1.61 1.90 7.17 7.56
General & administrative .37 .40 .39 .38 .40 1.54 1.85
Depreciation & amortization 1.47 1.69 1.55 1.46 1.42 6.17 5.47
- -------------------------------------------- ----------- ------------ ------------ ------------ ------------ ------------ ----------
Total expenses 3.84 3.88 3.71 3.45 3.72 14.88 14.88
- -------------------------------------------- ----------- ------------ ------------ ------------ ------------ ------------ ----------
Operating income 2.42 2.00 2.09 1.94 2.30 8.45 8.01
- -------------------------------------------- ----------- ------------ ------------ ------------ ------------ ------------ ----------
Interest expense 1.01 1.07 1.07 1.06 1.23 4.21 5.14
- -------------------------------------------- ----------- ------------ ------------ ------------ ------------ ------------ ----------
Income before equity in earnings of
unconsolidated joint ventures, minority
interest and discontinued
operations $1.41 $.93 $1.02 $.88 $1.07 $4.24 $2.87
- -------------------------------------------- ----------- ------------ ------------ ------------ ------------ ------------ ----------
Total revenues less property
operating and general &
administrative expenses ("NOI") $3.89 $3.69 $3.64 $3.40 $3.72 $14.62 $13.48
- -------------------------------------------- ----------- ------------ ------------ ------------ ------------ ------------ ----------
(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.
13
Unconsolidated Joint Venture Information -
Summary Balance Sheets (dollars in thousands)
Tanger's
Share as of
12/31/04 9/30/04 6/30/04 3/31/04 12/31/03 12/31/04(1)
Assets
Investment properties at cost - net $69,865 $68,615 $69,955 $67,051 $63,899 $30,198
Cash and cash equivalents 2,449 2,184 1,381 2,078 4,145 1,069
Deferred charges - net 1,973 2,076 1,535 1,596 1,652 885
Other assets 2,826 3,168 3,879 3,334 3,277 1,232
- ----------------------------------------- -------------- ------------ ------------ ------------ ------------ -----------------
Total assets $77,113 $76,043 $76,750 $74,059 $72,973 $33,384
- ----------------------------------------- -------------- ------------ ------------ ------------ ------------ -----------------
Liabilities & Owners' Equity
Mortgage payable $59,708 $59,233 $57,156 $54,811 $54,683 $25,748
Construction trade payables 578 1,328 3,090 2,501 1,164 289
Accounts payable & other liabilities 702 730 508 603 564 329
- ----------------------------------------- -------------- ------------ ------------ ------------ ------------ -----------------
Total liabilities 60,988 61,291 60,754 57,915 56,411 26,366
Owners' equity 16,125 14,752 15,996 16,144 16,562 7,018
- ----------------------------------------- -------------- ------------ ------------ ------------ ------------ -----------------
Total liabilities & owners' equity $77,113 $76,043 $76,750 $74,059 $72,973 $33,384
- ----------------------------------------- -------------- ------------ ------------ ------------ ------------ -----------------
(1) Tanger's portion of investment properties at cost - net, includes $9.5
million associated with a development property that generates 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
12/04 09/04 06/04 03/04 12/03 12/04 12/03
Revenues $2,557 $2,682 $2,507 $2,075 $2,098 $9,821 $8,178
- -------------------------------------- ------------- ------------ ------------ ------------ ------------- ------------ ------------
Expenses
Property operating 900 918 946 775 760 3,539 2,972
General & administrative 10 8 12 1 26 31 47
Depreciation & amortization 765 723 631 623 613 2,742 2,292
- -------------------------------------- ------------- ------------ ------------ ------------ ------------- ------------ ------------
Total expenses 1,675 1,649 1,589 1,399 1,399 6,312 5,311
- -------------------------------------- ------------- ------------ ------------ ------------ ------------- ------------ ------------
Operating income 882 1,033 918 676 699 3,509 2,867
Interest expense 401 346 405 380 380 1,532 1,371
- -------------------------------------- ------------- ------------ ------------ ------------ ------------- ------------ ------------
Net income $ 481 $ 687 $ 513 $ 296 $ 319 $1,977 $1,496
- -------------------------------------- ------------- ------------ ------------ ------------ ------------- ------------ ------------
Tanger's share of:
- -------------------------------------- ------------- ------------ ------------ ------------ ------------- ------------ ------------
Total revenues less property
operating and general &
administrative expenses ("NOI") $ 824 $ 878 $ 774 $ 650 $ 656 $3,126 $2,580
Net income $ 244 $ 359 $ 274 $ 165 $ 180 $1,042 $ 819
Depreciation (real estate related) $ 379 $ 351 $ 304 $ 300 $ 293 $1,334 $1,101
- -------------------------------------- ------------- ------------ ------------ ------------ ------------- ------------ ------------
14
Debt Outstanding Summary (dollars in thousands)
As of December 31, 2004
Principal Interest Maturity
Balance Rate Date
Mortgage debt
Lancaster, PA $13,807 9.770% 04/10/05
Commerce I, GA 7,291 9.125% 09/10/05
Kittery I, ME 60,408 7.875% 04/01/09
San Marcos I, TX
West Branch, MI
Williamsburg, IA
San Marcos II, TX 18,433 7.980% 04/01/09
Blowing Rock, NC 9,366 8.860% 09/01/10
Nags Head, NC 6,356 8.860% 09/01/10
Consolidated JV Debt 183,335 6.590% 07/10/08
Premium on Consolidated JV Debt (1) 9,346
- ------------------------------------- -------------- -------------------- ----------------
Total mortgage debt 308,342
- ------------------------------------- -------------- -------------------- ----------------
Corporate debt
Unsecured term loan 53,500 Libor + 1.45% 03/26/06
Unsecured credit facilities 26,165 Libor + 1.40% 06/30/07
2001 Senior unsecured notes 100,000 9.125% 02/15/08
- ------------------------------------- -------------- -------------------- ----------------
Total corporate debt 179,665
- ------------------------------------- -------------- -------------------- ----------------
Total debt $488,007
- ------------------------------------- -------------- -------------------- ----------------
(1) 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.
15
Future Scheduled Principal Payments (dollars in thousands)
As of December 31, 2004
Scheduled Total
Amorization Balloon Scheduled
Payments Payments Payments
- ---------------------- --------------- ----------------- ------------------
2005 5,842 20,576 26,418
2006 5,715 53,500 59,215
2007 6,140 26,165 32,305
2008 4,872 270,351 275,223
2009 967 70,474 71,441
2010 181 13,878 14,059
2011 -- -- --
2012 -- -- --
2013 -- -- --
2014
- ---------------------- --------------- ----------------- ------------------
2015 & thereafter -- -- --
- ---------------------- --------------- ----------------- ------------------
$23,717 $454,944 $478,661
Premium on Consolidated JV Debt (1) 9,346
- ---------------------- --------------------------------- ------------------
$488,007
- ---------------------- --------------- ----------------- ------------------
(1) Represents a premium on mortgage debt assumed in the Charter Oak
acquisition joint venture, which is consolidated on Tanger's balance sheet.
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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 6825
Fax: (336) 297-0931
e-mail: tangermail@tangeroutlet.com
---------------------------
Mail: Tanger Factory Outlet Centers, Inc.
3200 Northline Avenue
Suite 360
Greensboro, NC 27408
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