Tanger Factory Outlet Centers, Inc.
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/05
Tanger Factory Outlet Centers, Inc.
Supplemental Operating and Financial Data
June 30, 2005
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, 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.
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 June 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
Future Scheduled Principal Payments.........................................16
Investor Information........................................................17
3
Geographic Diversification
As of June 30, 2005
State # of Centers GLA % of GLA
- ------------------------------ ------------ ---------------- -------------------
South Carolina (1) (2) 3 1,222,503 14%
Georgia 3 773,860 9%
New York 1 729,497 8%
Texas 2 620,000 7%
Alabama (2) 2 615,069 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%
North Carolina (3) 3 251,798 3%
Louisiana 1 245,199 3%
New Hampshire (2) 1 227,998 3%
Florida 1 198,924 2%
Minnesota 1 134,480 2%
California 1 108,950 1%
Maine 2 84,313 1%
- ------------------------------ ------------ ---------------- -------------------
Total 33 8,660,659 100%
- ------------------------------ ------------ ---------------- -------------------
(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) Includes one center in Burlington, NC for which we only have management
responsibilities.
4
Property Summary - Occupancy at End of Each Period Shown
% % % % %
Total of GLA Occupied Occupied Occupied Occupied Occupied
Location 6/30/05 6/30/05 3/31/05 12/31/04 09/30/05 6/30/04
- -------------------------- -------------- -------------- -------------- --------------- -------------- --------------
Riverhead, NY 729,497 99% 99% 99% 99% 99%
Rehoboth, DE (2) 568,873 100% 99% 99% 99% 99%
Foley, AL (2) 535,494 99% 95% 99% 99% 99%
San Marcos, TX 442,510 99% 98% 100% 97% 96%
Myrtle Beach, SC (2) 427,417 93% 92% 92% 96% 97%
Sevierville, TN 419,038 100% 99% 100% 100% 100%
Myrtle Beach, SC (1) 401,992 100% 97% 99% 100% 100%
Hilton Head, SC (2) 393,094 90% 89% 92% 91% 89%
Commerce II, GA 340,656 99% 96% 99% 98% 97%
Howell, MI 324,631 96% 96% 100% 100% 100%
Park City, UT (2) 300,602 99% 98% 97% 97% 97%
Westbrook, CT (2) 291,051 92% 92% 93% 93% 90%
Branson, MO 277,883 100% 100% 100% 100% 100%
Williamsburg, IA 277,230 96% 96% 100% 97% 96%
Lincoln City, OR (2) 270,280 92% 91% 96% 95% 93%
Tuscola, IL (2) 256,514 76% 75% 78% 76% 77%
Lancaster, PA 255,152 99% 99% 100% 99% 96%
Locust Grove, GA 247,454 98% 97% 100% 98% 99%
Gonzales, LA 245,199 100% 100% 100% 97% 93%
Tilton, NH (2) 227,998 96% 91% 99% 98% 98%
Fort Myers, FL 198,924 91% 92% 91% 87% 82%
Commerce I, GA 185,750 86% 76% 82% 68% 68%
Terrell, TX 177,490 99% 100% 100% 97% 97%
North Branch, MN 134,480 100% 98% 100% 100% 99%
West Branch, MI 112,120 97% 98% 98% 100% 100%
Barstow, CA 108,950 98% 100% 100% 100% 95%
Blowing Rock, NC 105,332 100% 100% 100% 100% 100%
Pigeon Forge, TN 94,694 96% 93% 96% 96% 93%
Nags Head, NC 82,178 100% 100% 100% 100% 100%
Boaz, AL 79,575 95% 95% 95% 95% 97%
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 89% 85% 82%
Dalton, GA n/a n/a n/a n/a n/a 79%
- -------------------------- -------------- -------------- -------------- --------------- -------------- --------------
Total (3) 8,596,371 97% 95% 97% 96% 95%
- -------------------------- -------------- -------------- -------------- --------------- -------------- --------------
(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.
5
Portfolio Occupancy at the End of Each Period (1)
06/05 03/05 12/04 09/04 06/04 03/04 12/03 09/03 06/03
97% 95% 97% 96% 95% 94% 96% 95% 96%
(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 June 30, 2005 (1)
# of % of
Tenant Stores GLA Total GLA
- ------------------------------- ----------- -------------- -----------------
The Gap, Inc. 58 580,160 6.8%
Phillips-Van Heusen 96 460,937 5.4%
Liz Claiborne 43 354,629 4.1%
VF Factory Outlet 36 303,096 3.5%
Reebok International 31 240,502 2.8%
Dress Barn, Inc. 29 214,865 2.5%
Retail Brand Alliance, Inc. 31 209,985 2.4%
Jones Retail Corporation 67 189,877 2.2%
Polo Ralph Lauren 23 187,569 2.2%
Brown Group Retail, Inc. 39 173,323 2.0%
- ------------------------------- ----------- -------------- -----------------
Total of All Listed Above 453 2,914,943 33.9%
- ------------------------------- ----------- -------------- -----------------
(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 June 30, 2005
Percentage of Total Gross Leasable Area (1)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015+
8.00% 20.00% 19.00% 15.00% 16.00% 11.00% 4.00% 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+
8.00% 19.00% 19.00% 16.00% 15.00% 14.00% 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
03/31/05 06/30/05 09/30/05 12/31/05 Date Date
- ------------------------------------------------ ------------- -------------- ------------- ------------ ------------ -------------
Re-tenanted Space:
Number of leases 42 32 74 70
Gross leasable area 204,830 117,356 322,186 281,962
New base rent per square foot $17.25 $16.41 $16.95 $16.48
Prior base rent per square foot $16.60 $15.72 $16.28 $16.15
Percent increase in rent per square foot 3.9% 4.4% 4.1% 2.1%
Renewed Space:
Number of leases 169 74 243 240
Gross leasable area 739,494 334,357 1,073,851 1,040,785
New base rent per square foot $17.35 $16.20 $16.99 $14.97
Prior base rent per square foot $15.97 $15.25 $15.74 $13.92
Percent increase in rent per square foot 8.6% 6.2% 7.9% 7.5%
Total Re-tenanted and Renewed Space:
Number of leases 211 106 317 310
Gross leasable area 944,324 451,713 1,396,037 1,322,747
New base rent per square foot $17.33 $16.25 $16.98 $15.30
Prior base rent per square foot $16.10 $15.37 $15.87 $14.40
Percent increase in rent per square foot 7.6% 5.7% 7.0% 6.2%
- ------------------------------------------------ ------------- -------------- ------------- ------------ ------------ -------------
Prior Prior
Year to Year to
03/31/05 06/30/05 09/30/05 12/31/05 Date Date
- ------------------------------------------------ ------------- -------------- ------------- ------------ ------------ -------------
Stores Opening:
Number of stores 13 32 45 66
Gross leasable area 50,994 105,009 156,003 232,711
Base rent per square foot $15.05 $18.24 $17.20 $17.81
Stores Closing:
Number of stores 32 13 45 71
Gross leasable area 103,163 57,780 160,943 229,040
Base rent per square foot $18.02 $13.35 $16.34 $16.04
Percent increase in rent per square foot (16.5%) 36.7% 5.3% 11.0%
- ------------------------------------------------ ------------- -------------- ------------- ------------ ------------ -------------
(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)
6/30/05 3/31/05 12/31/04 09/30/04 6/30/04
- -------------------------------------------------- -------------- --------------- -------------- -------------- ---------------
Assets
Rental property
Land $113,284 $113,355 $113,830 $113,869 $115,541
Buildings 956,440 954,758 963,563 956,109 965,394
Construction in progress 6,044 1,173 -- -- --
- -------------------------------------------------- -------------- --------------- -------------- -------------- ---------------
Total rental property 1,075,768 1,069,286 1,077,393 1,069,978 1,080,935
Accumulated depreciation (237,688) (228,252) (224,622) (215,172) (209,359)
- -------------------------------------------------- -------------- --------------- -------------- -------------- ---------------
Total rental property - net 838,080 841,034 852,771 854,806 871,576
Cash 3,543 6,531 4,103 27,135 8,694
Deferred charges - net 54,818 55,611 58,851 60,958 64,747
Other assets 21,785 21,536 20,653 19,595 26,963
- -------------------------------------------------- -------------- --------------- -------------- -------------- ---------------
Total assets $918,226 $924,712 $936,378 $962,494 $971,980
- -------------------------------------------------- -------------- --------------- -------------- -------------- ---------------
Liabilities, minority interests & shareholders' equity
Liabilities
Debt
Senior, unsecured notes $100,000 $100,000 $100,000 $147,509 $147,509
Mortgages payable 290,197 305,983 308,342 310,483 366,065
Unsecured note 53,500 53,500 53,500 53,500 --
Unsecured lines of credit 45,330 33,455 26,165 -- --
- -------------------------------------------------- -------------- --------------- -------------- -------------- ---------------
Total debt 489,027 492,938 488,007 511,492 513,574
Construction trade payables 9,231 9,781 11,918 10,361 6,300
Accounts payable & accruals 16,984 25,753 17,026 17,488 18,579
- -------------------------------------------------- -------------- --------------- -------------- -------------- ---------------
Total liabilities 515,242 528,472 516,951 539,341 538,453
- -------------------------------------------------- -------------- --------------- -------------- -------------- ---------------
Minority interests
Consolidated joint venture 225,103 223,895 222,673 221,400 220,225
Operating partnership 31,963 31,045 35,621 36,533 38,731
- -------------------------------------------------- -------------- --------------- -------------- -------------- ---------------
Total minority interests 257,066 254,940 258,294 257,933 258,956
- -------------------------------------------------- -------------- --------------- -------------- -------------- ---------------
Shareholders' equity
Common shares 277 276 274 274 274
Paid in capital 278,811 277,857 274,340 274,286 272,322
Distributions in excess of net income (126,436) (129,917) (109,506) (105,116) (94,603)
Deferred compensation (6,372) (6,844) (3,975) (4,224) (3,406)
Accumulated other comprehensive loss (362) (72) -- -- (16)
- -------------------------------------------------- -------------- --------------- -------------- -------------- ---------------
Total shareholders' equity 145,918 141,300 161,133 165,220 174,571
- -------------------------------------------------- -------------- --------------- -------------- -------------- ---------------
Total liabilities, minority interests &
shareholders' equity $918,226 $924,712 $936,378 $962,494 $971,980
- -------------------------------------------------- -------------- --------------- -------------- -------------- ---------------
10
Consolidated Statements of Operations (dollars and shares in thousands)
Three Months Ended YTD
06/05 03/05 12/04 09/04 06/04 06/05 06/04
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------ ------------ -------------
Revenues
Base rentals $33,528 $31,861 $33,504 $32,879 $32,041 $65,389 $63,501
Percentage rentals 1,267 886 2,380 1,289 958 2,153 1,669
Expense reimbursements 12,620 14,297 14,629 13,060 13,010 26,917 24,896
Other income 1,205 947 1,692 1,816 2,388 2,152 3,238
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------ ------------ -------------
Total revenues 48,620 47,991 52,205 49,044 48,397 96,611 93,304
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------ ------------ -------------
Expenses
Property operating 14,611 16,240 16,664 14,953 14,719 30,851 28,142
General & administrative 3,711 3,044 3,063 3,346 3,254 6,755 6,411
Depreciation & amortization 11,420 12,930 12,292 14,042 12,955 24,350 25,112
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------ ------------ -------------
Total expenses 29,742 32,214 32,019 32,341 30,928 61,956 59,665
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------ ------------ -------------
Operating income 18,878 15,777 20,186 16,703 17,469 34,655 33,639
Interest expense 8,167 8,228 8,433 8,919 8,901 16,395 17,765
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------ ------------ -------------
Income before equity in earnings
of unconsolidated joint ventures,
minority interests, discontinued
operations and loss on sale of
real estate 10,711 7,549 11,753 7,784 8,568 18,260 15,874
Equity in earnings of unconsolidated
joint ventures 268 191 243 359 275 459 440
Minority interests:
Consolidated joint venture (6,727) (6,624) (6,734) (7,198) (6,619) (13,351) (13,212)
Operating partnership (772) (202) (958) (175) (409) (974) (568)
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------ ------------ -------------
Income from continuing operations 3,480 914 4,304 770 1,815 4,394 2,534
Discontinued operations (1) -- -- -- (2,785) 1,930 -- 2,223
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------ ------------ -------------
Income before loss on sale of real estate 3,480 914 4,304 (2,015) 3,745 4,394 4,757
Loss on sale of real estate -- (3,843) -- -- -- (3,843) --
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------ ------------ -------------
Net income (loss) $3,480 $(2,929) $ 4,304 $ (2,015) $ 3,745 $ 551 $ 4,757
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------ ------------ -------------
Basic earnings per common share:
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------ ------------ -------------
Income from continuing operations $ .13 $(.11) $ .16 $ .03 $.07 $ .02 $.09
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------ ------------ -------------
Net income (loss) $ .13 $(.11) $ .16 $(.07) $.14 $ .02 $.18
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------ ------------ -------------
Diluted earnings per common share:
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------ ------------ -------------
Income from continuing operations $ .13 $(.11) $ .16 $ .03 $.07 $ .02 $.09
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------ ------------ -------------
Net income (loss) $ .13 $(.11) $ .16 $(.07) $.14 $ .02 $.18
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------ ------------ -------------
Weighted average common shares:
Basic 27,357 27,304 27,266 27,224 27,008 27,330 26,840
Diluted 27,576 27,516 27,520 27,366 27,188 27,546 27,082
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------ ------------ -------------
(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.
11
FFO and FAD Analysis (dollars and shares in thousands)
Three Months Ended YTD
06/05 03/05 12/04 09/04 06/04 06/05 06/04
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------- ------------ ------------
Funds from operations:
Net income $ 3,480 $ (2,929) $ 4,304 $(2,015) $3,745 $ 551 $4,757
Adjusted for -
Minority interest in operating
partnership 772 202 958 175 408 974 568
Minority interest adjustment
consolidated joint venture (277) 169 (198) 314 (329) (108) (296)
Minority interest, depreciation
and amortization in
discontinued operations -- -- -- (518) 662 -- 951
Depreciation and amortization
uniquely significant to
real estate - wholly owned 11,358 12,876 12,239 13,986 12,900 24,234 24,999
Depreciation and amortization
uniquely significant to
real estate - joint ventures 370 369 379 351 304 739 604
(Gain) loss on sale of real estate -- 3,843 -- 3,544 (2,084) 3,843 (2,084)
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------- ------------ ------------
Funds from operations $ 15,703 $ 14,530 $17,682 $15,837 $15,606 $ 30,233 $29,499
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------- ------------ ------------
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------- ------------ ------------
Funds from operations per share $.47 $.43 $.53 $.47 $.47 $.90 $.89
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------- ------------ ------------
Funds available for distribution:
Funds from operations $15,703 $14,530 $17,682 $15,837 $15,606 $30,233 $29,499
Adjusted For -
Corporate depreciation
excluded above 62 55 53 56 55 117 113
Amortization of finance costs 341 355 350 383 365 696 732
Amortization of share compensation 468 242 237 236 989 710 1,003
Straight line rent adjustment (539) (112) (90) (81) (134) (651) (218)
Below market rent adjustment (613) (46) (418) (277) (310) (659) (370)
Market rate interest adjustment (643) (629) (631) (634) (635) (1,272) (1,245)
2nd generation tenant allowances (2,346) (4,462) (2,839) (1,413) (1,595) (6,808) (3,116)
Capital improvements (2,231) (952) (2,080) (1,583) (2,047) (3,183) (3,382)
Consolidated joint venture
minority interest 277 (169) 198 (314) 329 108 296
share of adjustments
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------- ------------ ------------
Funds available for distribution $10,479 $ 8,812 $12,462 $12,209 $12,623 $19,291 $23,312
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------- ------------ ------------
Funds available for distribution
per share $.31 $.26 $.37 $.37 $.38 $.57 $.70
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------- ------------ ------------
Dividends paid per share $.3225 $.3125 $.3125 $.3125 $.3125 $.635 $.6200
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------- ------------ ------------
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------- ------------ ------------
FFO payout ratio 69% 73% 59% 66% 66% 71% 70%
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------- ------------ ------------
FAD payout ratio 104% 120% 84% 84% 82% 111% 89%
Diluted weighted average common shares 33,643 33,583 33,587 33,432 33,254 33,613 33,148
- ------------------------------------------ ----------- ----------- ------------ ------------ ------------- ------------ ------------
12
Per Weighted Average Gross Leasable Area (GLA) Analysis
Three Months Ended YTD
06/05 03/05 12/04 09/04 06/04 06/05 06/04
- ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
GLA open at end of period - (000's)
Wholly owned 4,923 4,925 5,066 5,066 5,240 4,923 5,240
Partially owned consolidated (1) 3,271 3,271 3,271 3,271 3,273 3,271 3,273
Partially owned unconsolidated(2) 402 402 402 391 374 402 374
Managed properties 65 65 105 432 434 65 434
Total GLA open at end of period 8,661 8,663 8,844 9,160 9,321 8,661 9,321
Weighted average GLA (000's) (3) 8,196 8,281 8,337 8,338 8,339 8,238 8,339
End of period occupancy (1) (2) 97% 95% 97% 96% 95% 97% 95%
PER SQUARE FOOT
Revenues
Base rentals $4.09 $3.85 $4.02 $3.95 $3.84 $7.94 $7.61
Percentage rentals .15 .11 .29 .15 .11 .26 .20
Expense reimbursements 1.54 1.73 1.75 1.56 1.56 3.27 2.99
Other income .15 .11 .20 .22 .29 .26 .39
- ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Total revenues 5.93 5.80 6.26 5.88 5.80 11.73 11.19
- ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Expenses
Property operating 1.78 1.96 2.00 1.79 1.77 3.74 3.38
General & administrative .45 .37 .37 .40 .39 .82 .77
Depreciation & amortization 1.39 1.56 1.47 1.69 1.55 2.96 3.01
- ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Total expenses 3.62 3.89 3.84 3.88 3.71 7.52 7.16
- ---------------------------------------- -----=------- ------------ ------------ ------------ ------------ ------------ -----------
Operating income 2.31 1.91 2.42 2.00 2.09 4.21 4.03
- ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Interest expense 1.00 .99 1.01 1.07 1.07 1.99 2.13
- ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Income before equity in earnings of
unconsolidated joint ventures,
minority interest, discontinued
operations and loss on sale of
real estate $1.31 $.92 $1.41 $.93 $1.02 $2.22 $1.90
- ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Total revenues less property
operating and general &
administrative expenses ("NOI") $3.70 $3.47 $3.89 $3.69 $3.64 $7.17 $7.04
- ---------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
(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
06/30/05 03/31/05 12/31/04 09/30/04 6/30/04 06/30/05
- ------------------------------------------------- ------------ ------------ ------------ ------------ -------------- -------------
Assets
Investment properties at cost - net $67,446 $67,399 $69,865 $68,615 $69,955 $29,169
Cash and cash equivalents 4,253 4,319 2,449 2,184 1,381 1,781
Deferred charges - net 1,433 1,305 1,973 2,076 1,535 716
Other assets 4,245 3,869 2,826 3,168 3,879 1,745
- ------------------------------------------------- ------------ ------------ ------------ ------------ -------------- -------------
Total assets $77,377 $76,892 $77,113 $76,043 $76,750 $33,411
- ------------------------------------------------- ------------ ------------ ------------ ------------ -------------- -------------
Liabilities & Owners' Equity
Mortgage payable $61,024 $60,254 $59,708 $59,233 $57,156 $26,308
Construction trade payables 477 426 578 1,328 3,090 239
Accounts payable & other liabilities 1,956 828 702 730 508 887
- ------------------------------------------------- ------------ ------------ ------------ ------------ -------------- -------------
Total liabilities 63,457 61,508 60,988 61,291 60,754 27,434
Owners' equity 13,920 15,384 16,125 14,752 15,996 5,977
- ------------------------------------------------- ------------ ------------ ------------ ------------ -------------- -------------
Total liabilities & owners' equity $77,377 $76,892 $77,113 $76,043 $76,750 $33,411
- ------------------------------------------------- ------------ ------------ ------------ ------------ -------------- -------------
(1) Tanger's portion of investment properties at cost - net, includes $9.1
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
06/05 03/05 12/04 09/04 06/04 06/05 06/04
- ----------------------------------------- ----------- ------------ ------------ ------------ ------------- ------------ ------------
Revenues $2,933 $2,511 $2,557 $2,682 $2,507 $5,444 $4,582
- ----------------------------------------- ----------- ------------ ------------ ------------ ------------- ------------ ------------
Property operating 1,067 974 900 918 946 2,041 1,721
General & administrative 15 -- 10 8 12 15 13
Depreciation & amortization 769 767 765 723 631 1,536 1,254
- ----------------------------------------- ----------- ------------ ------------ ------------ ------------- ------------ ------------
Total expenses 1,851 1,741 1,675 1,649 1,589 3,592 2,988
- ----------------------------------------- ----------- ------------ ------------ ------------ ------------- ------------ ------------
Operating income 1,082 770 882 1,033 918 1,852 1,594
Interest expense 574 417 401 346 405 991 785
- ----------------------------------------- ----------- ------------ ------------ ------------ ------------- ------------ ------------
Net income $508 $353 $481 $687 $513 $861 $809
- ----------------------------------------- ----------- ------------ ------------ ------------ ------------- ------------ ------------
Tanger's share of:
- ----------------------------------------- ----------- ------------ ------------ ------------ ------------- ------------ ------------
Total revenues less property
operating and general &
administrative expenses ("NOI") $925 $769 $824 $878 $774 $1,694 $1,424
Net income $268 $191 $243 $359 $275 $459 $440
Depreciation (real estate related) $370 $369 $379 $351 $304 $739 $604
- ----------------------------------------- ----------- ------------ ------------ ------------ ------------- ------------ ------------
14
Debt Outstanding Summary (dollars in thousands)
As of June 30, 2005
Principal Interest Maturity
Balance Rate Date
- ------------------------------------------ -------------- ------------------ --------------
Mortgage debt
Commerce I, GA 7,012 9.125% 09/10/05
Kittery I, ME 59,730 7.875% 04/01/09
San Marcos I, TX
West Branch, MI
Williamsburg, IA
San Marcos II, TX 18,266 7.980% 04/01/09
Blowing Rock, NC 9,286 8.860% 09/01/10
Nags Head, NC 6,301 8.860% 09/01/10
Consolidated JV Debt 181,686 6.590% 07/10/08
Premium on Consolidated JV Debt (1) 7,916
- ------------------------------------------ -------------- ------------------ --------------
Total mortgage debt 290,197
- ------------------------------------------ -------------- ------------------ --------------
Corporate debt
Unsecured term loan 53,500 Libor + 1.45% 03/26/06
Unsecured credit facilities 45,330 Libor + 1.40% 06/30/07
2001 Senior unsecured notes 100,000 9.125% 02/15/08
- ------------------------------------------ -------------- ------------------ --------------
Total corporate debt 198,830
- ------------------------------------------ -------------- ------------------ --------------
Total debt $489,027
- ------------------------------------------ -------------- ------------------ --------------
(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 June 30, 2205
Scheduled Total
Amortization Balloon Scheduled
Year Payments Payments Payments
- -------------------------- ------------------ ---------------- -----------------
2005 2,835 6,868 9,703
2006 5,715 53,500 59,215
2007 6,140 45,330 51,470
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 -- -- --
- -------------------------- ------------------ ---------------- -----------------
$20,710 $460,401 $481,111
Premium on Consolidated JV Debt (1) 7,916
- --------------------------------------------- ---------------- -----------------
$489,027
- -------------------------- ------------------ ---------------- -----------------
(1) Represents a premium on mortgage debt assumed in the Charter Oak
acquisition joint venture, which is consolidated on Tanger's balance sheet.
16
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
17