Three Months Ended		Years Ended
				December 31,		December 31,
				2009	2008	2009	2008
FFO as reported				$   32,788	$  26,449	$  113,958	$  88,066
As adjusted for:
	US Treasury lock settlements			---	---	---	8,910
	Prepayment premium			---	---	---	406
	Abandoned due diligence costs			797	3,336	797	3,923
	Impairment charge			---	---	5,200	---
	Gain on early extinguishment of debt			---	---	(10,467)	---
	Executive severance			---	---	10,296	---
	Gain on sale of outparcel			---	---	(3,292)	---
	Termination fees			(99)	(1,747)	(1,529)	(2,904)
	Impact of above adjustments to the allocation
		of earnings to participating securities		(5)	(22)	(11)	(137)
FFO as adjusted				$  33,481	$ 28,016	$ 114,952	$ 98,264
Diluted weighted average common shares				46,110	37,324	42,079	37,287
FFO per share as adjusted				$        .73	$       .75	$       2.73	$     2.64

 

·	Dividend increase approved by Board of Directors to raise the quarterly common share cash dividend from $0.38 to $0.3825 per share, $1.53 per share annualized, representing the 16th consecutive year of increased dividends

 

·	Successfully completed exchange offer related to 3.75% Exchangeable Senior Notes, which reduced outstanding debt by $142.3 million, in exchange for approximately 4.9 million common shares

 

·	Successfully completed 3,450,000 common share offering at a price of $35.50 per share, with net proceeds amounting to approximately $116.8 million

 

·	Received an upgrade from Moody’s Investor Service from Baa3 stable to Baa3 positive

 

·	23.7% debt-to-total market capitalization ratio, compared to 34.5% last year

 

·	5.17 times interest coverage ratio for the three months ended December 31, 2009 compared to 3.84 times last year

 

·	9.7% average increase in base rental rates on 1,218,000 square feet of signed renewals

 

·	30.9% average increase in base rental rates on 305,000 square feet of re-leased space

 

·	1.4% increase in same center net operating income for the year

 

·	96.0% occupancy rate for wholly-owned properties, up 0.4% from September 30, 2009

 

·	$339 per square foot in reported same-space tenant sales for the rolling twelve months ended December 31, 2009

Noncontrolling interest, gain/loss on the sale of real estate,

 

					Three months ended								Year ended
					December 31,								December 31,
					2009				2008				2009				2008
REVENUES
	Base rentals (a)				$	44,405			$	42,694			$	174,917			$	159,068
	Percentage rentals					3,111				2,949				6,801				7,058
	Expense reimbursements					22,027				20,557				78,689				72,004
	Other income (b)					2,000				2,137				11,278				7,261
			Total revenues			71,543				68,337				271,685				245,391
EXPENSES
	Property operating					23,982				21,139				87,877				77,974
	General and administrative					5,066				5,099				22,288				22,264
	Executive severance (c)					---				---				10,296				---
	Depreciation and amortization					20,239				16,736				80,501				62,329
	Abandoned due diligence costs					797				3,336				797				3,923
	Impairment charge (d)					---				---				5,200				---
			Total expenses			50,084				46,310				206,959				166,490
Operating income						21,459				22,027				64,726				78,901
	Interest expense (e)					(8,217	)			(10,972	)			(37,683	)			(41,125	)
	Gain on early extinguishment of debt (f)					---				---				10,467				---
	Gain on fair value measurement of previously
			held interest in acquired joint venture (g)			---				---				31,497				---
		Loss on settlement of US treasury rate locks				---				---				---				(8,910	)
Income before equity in earnings (losses) of
	unconsolidated joint ventures					13,242				11,055				69,007				28,866
Equity in earnings (losses) of unconsolidated
	joint ventures					(166	)			(696	)			(1,512	)			852
Net income						13,076				10,359				67,495				29,718
Noncontrolling interest in Operating Partnership						(1,538	)			(1,459	)			(9,476	)			(3,932	)
Net income attributable to
	Tanger Factory Outlet Centers, Inc.					11,538				8,900				58,019				25,786
Preferred share dividends						(1,406	)			(1,406	)			(5,625	)			(5,625	)
Allocation of earnings to participating securities						(121	)			(195	)			(701	)			(724	)
Net income available to common shareholders
	of Tanger Factory Outlet Centers, Inc.				$	10,011			$	7,299			$	51,693			$	19,437
Basic earnings per common share:
	Income from continuing operations				$	.25			$	.23			$	1.44			$	.63
	Net income				$	.25			$	.23			$	1.44			$	.63
Diluted earnings per common share:
	Income from continuing operations				$	.25			$	.23			$	1.44			$	.62
	Net income				$	.25			$	.23			$	1.44			$	.62
Funds from operations available to
	common shareholders (FFO)				$	32,788			$	26,449			$	113,958			$	88,066
FFO per common share – diluted					$	.71			$	.71			$	2.71			$	2.36

(a) Includes straight-line rent and market rent adjustments of $513 and $627 for the three months ended and $2,734 and $3,551 for the years ended December 31, 2009 and 2008, respectively.

(b) Includes gain on sale of outparcel of land of $3,292 which occurred in the third quarter of 2009.

(c) Represents accelerated vesting of restricted shares and accrual of cash severance payment to Stanley K. Tanger who retired from the Company during September 2009.

(d) Represents charge for impairment of our Commerce I, Georgia center of approximately $5.2 million.

(e) In accordance with recent accounting guidance addressing “Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)”, the results of operations for all prior periods presented for which such instruments were outstanding have been restated.  Also, includes prepayment premium of $406 for the year ended December 31, 2008 related to the repayment of a mortgage which had a principal balance of $170.7 million.

(f) Represents gain on early extinguishment of $142.3 million of exchangeable notes which were retired through an exchange offer for approximately 4.9 million common shares in May 2009.

(g) Represents gain on fair value measurement of our previously held interest in the Myrtle Beach Hwy 17 joint venture upon acquisition on January 5, 2009.

								December 31,				December 31,
								2009				2008
								(Unaudited)				(Unaudited)
ASSETS:
	Rental property
			Land					$	143,933			$	135,689
			Buildings, improvements and fixtures						1,352,568				1,260,243
			Construction in progress						11,369				3,823
									1,507,870				1,399,755
			Accumulated depreciation						(412,530	)			(359,301	)
			Rental property, net						1,095,340				1,040,454
	Cash and cash equivalents								3,267				4,977
	Investments in unconsolidated joint ventures								9,054				9,496
	Deferred charges, net								38,867				37,750
	Other assets								32,333				29,248
				Total assets				$	1,178,861			$	1,121,925
LIABILITIES AND EQUITY:
Liabilities
	Debt
	Senior, unsecured notes (net of discount of $858 and $9,137 respectively)							$	256,352			$	390,363
	Mortgages payable (net of discount of $241 and $0, respectively)								35,559				---
	Unsecured term loan								235,000				235,000
	Unsecured lines of credit								57,700				161,500
			Total debt						584,611				786,863
Construction trade payables									14,194				11,968
Accounts payable and accrued expenses									31,916				26,277
Other liabilities									27,077				30,914
			Total liabilities						657,798				856,022
Commitments
Equity
Tanger Factory Outlet Centers, Inc. equity
	Preferred shares, 7.5% Class C, liquidation preference $25 per
			share, 8,000,000 shares authorized, 3,000,000
			shares issued and outstanding at December 31, 2009
			and December 31, 2008						75,000				75,000
	Common shares, $.01 par value, 150,000,000 shares authorized,
			40,277,124 and 31,667,501 shares issued and outstanding
			at December 31, 2009 and December 31, 2008, respectively						403				317
	Paid in capital								596,074				371,190
	Distributions in excess of earnings								(202,997	)			(201,679	)
	Accumulated other comprehensive loss								(5,809	)			(9,617	)
		Equity attributable to Tanger Factory Outlet Centers, Inc.							462,671				235,211
Equity attributable to noncontrolling interest in Operating Partnership									58,392				30,692
			Total equity						521,063				265,903
				Total liabilities and equity				$	1,178,861			$	1,121,925

						Three months ended												Year ended
						December 31,												December 31,
						2009						2008						2009				2008
FUNDS FROM OPERATIONS (a)
Net income					$		13,076				$		10,359				$		67,495			$	29,718
Adjusted for:
	Depreciation and amortization uniquely significant to
		real estate – consolidated					20,112						16,630						80,008				61,965
	Depreciation and amortization uniquely significant to
		real estate – unconsolidated joint ventures					1,231						1,227						4,859				3,165
	Gain on fair value measurement of previously held
		interest in acquired joint venture																	(31,497	)			---
Funds from operations (FFO)							34,419						28,216						120,865				94,848
Preferred share dividends							(1,406	)					(1,406	)					(5,625	)			(5,625	)
Allocation of earnings to participating securities							(225	)					(361	)					(1,282	)			(1,157	)
Funds from operations available to common shareholders					$		32,788				$		26,449				$		113,958			$	88,066
Funds from operations available to common
	shareholders per share – diluted				$		.71				$		.71				$		2.71			$	2.36
WEIGHTED AVERAGE SHARES
Basic weighted average common shares							39,958						31,160						35,916				31,084
Effect of exchangeable notes							19						---						19				---
Effect of outstanding options							66						97						77				136
Diluted weighted average common shares (for earnings							40,043						31,257						36,012				31,220
	per share computations)
Convertible operating partnership units (b)							6,067						6,067						6,067				6,067
Diluted weighted average common shares (for funds
	from operations per share computations)						46,110						37,324						42,079				37,287
OTHER INFORMATION
Gross leasable area open at end of period -
	Wholly owned						9,216						8,820						9,216				8,820
	Partially owned – unconsolidated						950						1,352						950				1,352
Outlet centers in operation -
	Wholly owned						31						30						31				30
	Partially owned – unconsolidated						2						3						2				3
States operated in at end of period (c)							21						21						21				21
Occupancy percentage at end of period (c) (d)							96.0	%					96.6	%					96.0	%			96.6	%

(a) FFO is a non-GAAP financial measure.  The most directly comparable GAAP measure is net income (loss), to which it is reconciled.  We believe that for a clear understanding of our operating results, FFO should be considered along with net income as presented elsewhere in this report.  FFO is presented because it is a widely accepted financial indicator used by certain investors and analysts to analyze and compare one equity REIT with another on the basis of operating performance.  FFO is generally defined as net income (loss), computed in accordance with generally accepted accounting principles, before extraordinary items and gains (losses) on sale or disposal of depreciable operating properties, plus depreciation and amortization uniquely significant to real estate and after adjustments for unconsolidated partnerships and joint ventures.  We caution that the calculation of FFO may vary from entity to entity and as such the presentation of FFO by us may not be comparable to other similarly titled measures of other reporting companies.  FFO does not represent net income or cash flow from operations as defined by accounting principles generally accepted in the United States of America and should not be considered an alternative to net income as an indication of operating performance or to cash flows from operations as a measure of liquidity.  FFO is not necessarily indicative of cash flows available to fund dividends to shareholders and other cash needs.

(b) The convertible operating partnership units (noncontrolling interest in operating partnership) are not dilutive on earnings per share computed in accordance with generally accepted accounting principles.

(c) Excludes Wisconsin Dells, Wisconsin and Deer Park, New York properties for the 2009 and 2008 periods which were operated by us through 50% and 33.3% ownership joint ventures, respectively.  Excludes Myrtle Beach Hwy 17, South Carolina property for the 2008 period during which it was operated by us through a 50% ownership joint venture.  We acquired the remaining 50% interest in January 2009.

(d) Excludes our wholly-owned, non-stabilized center in Washington, Pennsylvania for the 2009 and 2008 periods.