Section | |
Portfolio Data: | |
Geographic Diversification | |
Property Summary - Occupancy at End of Each Period Shown | |
Portfolio Occupancy at the End of Each Period | |
Outlet Center Ranking | |
Top 25 Tenants Based on Percentage of Total Annualized Base Rent | |
Lease Expirations as of June 30, 2020 | |
Capital Expenditures | |
Leasing Activity | |
Financial Data: | |
Consolidated Balance Sheets | |
Consolidated Statements of Operations | |
Components of Rental Revenues | |
Rental Revenues Collection Status | |
Unconsolidated Joint Venture Information | |
Debt Outstanding Summary | |
Future Scheduled Principal Payments | |
Senior Unsecured Notes Financial Covenants | |
Enterprise Value, Net Debt, Liquidity, Debt Ratios and Credit Ratings | |
Non-GAAP and Supplemental Measures: | |
Non-GAAP Definitions | |
FFO and FAD Analysis | |
Portfolio NOI and Same Center NOI | |
Adjusted EBITDA and EBITDAre Analysis | |
Pro Rata Balance Sheet Information | |
Pro Rata Statement of Operations Information | |
Investor Information |
State | # of Centers | GLA | % of GLA | |||||
South Carolina | 5 | 1,604,510 | 13 | % | ||||
New York | 2 | 1,468,888 | 12 | % | ||||
Georgia | 3 | 1,121,579 | 9 | % | ||||
Texas | 3 | 1,001,357 | 8 | % | ||||
Pennsylvania | 3 | 999,416 | 8 | % | ||||
Michigan | 2 | 671,557 | 6 | % | ||||
Delaware | 1 | 557,353 | 5 | % | ||||
Alabama | 1 | 554,587 | 5 | % | ||||
New Jersey | 1 | 489,718 | 4 | % | ||||
Tennessee | 1 | 447,815 | 4 | % | ||||
North Carolina | 2 | 422,895 | 3 | % | ||||
Ohio | 1 | 411,904 | 3 | % | ||||
Arizona | 1 | 410,751 | 3 | % | ||||
Florida | 1 | 351,721 | 3 | % | ||||
Missouri | 1 | 329,861 | 3 | % | ||||
Mississippi | 1 | 324,717 | 3 | % | ||||
Louisiana | 1 | 321,066 | 3 | % | ||||
Connecticut | 1 | 311,511 | 3 | % | ||||
New Hampshire | 1 | 250,107 | 2 | % | ||||
Total | 32 | 12,051,313 | 100 | % | ||||
Unconsolidated Joint Venture Properties | ||||||||
# of Centers | GLA | Ownership % | ||||||
Charlotte, NC | 1 | 398,676 | 50.00 | % | ||||
Ottawa, ON | 1 | 357,218 | 50.00 | % | ||||
Columbus, OH | 1 | 355,245 | 50.00 | % | ||||
Texas City, TX | 1 | 352,705 | 50.00 | % | ||||
National Harbor, MD | 1 | 341,156 | 50.00 | % | ||||
Cookstown, ON | 1 | 307,895 | 50.00 | % | ||||
Saint-Sauveur, QC | 1 | 99,405 | 50.00 | % | ||||
Total | 7 | 2,212,300 | ||||||
Grand Total | 39 | 14,263,613 |
Location | Total GLA 06/30/20 | % Occupied 06/30/20 | % Occupied 03/31/20 | % Occupied 06/30/19 | ||||||||
Deer Park, NY | 739,110 | 98 | % | 98 | % | 97 | % | |||||
Riverhead, NY | 729,778 | 93 | % | 92 | % | 96 | % | |||||
Rehoboth Beach, DE | 557,353 | 94 | % | 95 | % | 98 | % | |||||
Foley, AL | 554,587 | 89 | % | 88 | % | 92 | % | |||||
Atlantic City, NJ | 489,718 | 79 | % | 79 | % | 78 | % | |||||
San Marcos, TX | 471,816 | 96 | % | 95 | % | 92 | % | |||||
Sevierville, TN | 447,815 | 100 | % | 99 | % | 99 | % | |||||
Savannah, GA | 429,089 | 95 | % | 96 | % | 97 | % | |||||
Myrtle Beach Hwy 501, SC | 426,523 | 96 | % | 96 | % | 99 | % | |||||
Jeffersonville, OH | 411,904 | 83 | % | 84 | % | 94 | % | |||||
Glendale, AZ (Westgate) | 410,751 | 97 | % | 97 | % | 95 | % | |||||
Myrtle Beach Hwy 17, SC | 403,425 | 99 | % | 99 | % | 100 | % | |||||
Charleston, SC | 386,328 | 96 | % | 100 | % | 99 | % | |||||
Lancaster, PA | 375,857 | 91 | % | 91 | % | 95 | % | |||||
Pittsburgh, PA | 373,863 | 94 | % | 95 | % | 98 | % | |||||
Commerce, GA | 371,408 | 98 | % | 96 | % | 99 | % | |||||
Grand Rapids, MI | 357,119 | 90 | % | 90 | % | 96 | % | |||||
Fort Worth, TX | 351,741 | 98 | % | 99 | % | 96 | % | |||||
Daytona Beach, FL | 351,721 | 98 | % | 98 | % | 99 | % | |||||
Branson, MO | 329,861 | 99 | % | 99 | % | 100 | % | |||||
Southaven, MS | 324,717 | 98 | % | 99 | % | 97 | % | |||||
Locust Grove, GA | 321,082 | 95 | % | 95 | % | 97 | % | |||||
Gonzales, LA | 321,066 | 95 | % | 96 | % | 94 | % | |||||
Mebane, NC | 318,886 | 100 | % | 100 | % | 100 | % | |||||
Howell, MI | 314,438 | 84 | % | 88 | % | 92 | % | |||||
Mashantucket, CT (Foxwoods) | 311,511 | 91 | % | 93 | % | 94 | % | |||||
Tilton, NH | 250,107 | 89 | % | 93 | % | 95 | % | |||||
Hershey, PA | 249,696 | 99 | % | 99 | % | 100 | % | |||||
Hilton Head II, SC | 206,564 | 98 | % | 98 | % | 97 | % | |||||
Hilton Head I, SC | 181,670 | 97 | % | 97 | % | 100 | % | |||||
Terrell, TX | 177,800 | 87 | % | 87 | % | 97 | % | |||||
Blowing Rock, NC | 104,009 | 84 | % | 85 | % | 95 | % | |||||
Total | 12,051,313 | 94 | % | 94 | % | 96 | % |
Location | Total GLA 06/30/20 | % Occupied 06/30/20 | % Occupied 03/31/20 | % Occupied 06/30/19 | ||||||||
Charlotte, NC | 398,676 | 96 | % | 97 | % | 98 | % | |||||
Ottawa, ON | 357,218 | 96 | % | 96 | % | 95 | % | |||||
Columbus, OH | 355,245 | 96 | % | 97 | % | 94 | % | |||||
Texas City, TX (Galveston/Houston) | 352,705 | 92 | % | 92 | % | 97 | % | |||||
National Harbor, MD | 341,156 | 97 | % | 96 | % | 96 | % | |||||
Cookstown, ON | 307,895 | 99 | % | 100 | % | 97 | % | |||||
Saint-Sauveur, QC | 99,405 | 88 | % | 92 | % | 94 | % | |||||
Total | 2,212,300 | 95 | % | 96 | % | 96 | % |
Ranking (2) | Period End Occupancy | Sq Ft (thousands) | % of Square Feet | % of Portfolio NOI (3) | |||||||
Consolidated Centers | |||||||||||
Centers 1 - 5 | 96 | % | 2,884 | 23 | % | 35 | % | ||||
Centers 6 - 10 | 97 | % | 1,749 | 15 | % | 18 | % | ||||
Centers 11 - 15 | 95 | % | 1,549 | 13 | % | 13 | % | ||||
Centers 16 - 20 | 92 | % | 2,036 | 17 | % | 15 | % | ||||
Centers 21 - 26 | 92 | % | 2,311 | 19 | % | 14 | % | ||||
Centers 27 - 32 | 90 | % | 1,522 | 13 | % | 5 | % | ||||
Ranking (2) | Cumulative Period End Occupancy | Cumulative Sq Ft (thousands) | Cumulative % of Square Feet | Cumulative % of Portfolio NOI (3) | |||||||
Consolidated Centers | |||||||||||
Centers 1 - 5 | 96 | % | 2,884 | 23 | % | 35 | % | ||||
Centers 1 - 10 | 96 | % | 4,633 | 38 | % | 53 | % | ||||
Centers 1 - 15 | 96 | % | 6,182 | 51 | % | 66 | % | ||||
Centers 1 - 20 | 95 | % | 8,218 | 68 | % | 81 | % | ||||
Centers 1 - 26 | 94 | % | 10,529 | 87 | % | 95 | % | ||||
Centers 1 - 32 | 94 | % | 12,051 | 100 | % | 100 | % | ||||
Unconsolidated centers (4) | 95 | % | 1,448 | n/a | n/a | ||||||
Domestic centers (5) | 94 | % | 13,499 | n/a | n/a | ||||||
(1) | Centers are ranked by sales per square foot for the trailing twelve months ended June 30, 2020, and sales per square foot include stores that have been occupied for a minimum of 12 months and are less than 20,000 square feet. Due to the portfolio-wide store closures experienced during the second quarter of 2020 as a result of COVID-19 mandates, sales per square foot is not separately presented herein. | ||||||||||
(2) | Outlet centers included in each ranking group above are as follows (in alphabetical order): | ||||||||||
Centers 1 - 5: | Deer Park, NY | Glendale, AZ (Westgate) | Rehoboth Beach, DE | Riverhead, NY | Sevierville, TN | ||||||
Centers 6 - 10: | Branson, MO | Lancaster, PA | Locust Grove, GA | Mebane, NC | Myrtle Beach Hwy 17, SC | ||||||
Centers 11 - 15: | Charleston, SC | Grand Rapids, MI | Hershey, PA | Hilton Head I, SC | Pittsburgh, PA | ||||||
Centers 16 - 20: | Atlantic City, NJ | Gonzales, LA | San Marcos, TX | Savannah, GA | Southaven, MS | ||||||
Centers 21 - 26: | Daytona Beach, FL | Foley, AL | Fort Worth, TX | Howell, MI | Mashantucket, CT (Foxwoods) | Myrtle Beach Hwy 501, SC | |||||
Centers 27 - 32: | Blowing Rock, NC | Commerce, GA | Hilton Head II, SC | Jeffersonville, OH | Terrell, TX | Tilton, NH | |||||
(3) | Based on the Company’s forecast of 2020 Portfolio NOI (see non-GAAP definitions), excluding centers not yet stabilized (none). The Company’s forecast is based on management’s estimates as of June 30, 2020 and may be considered a forward-looking statement that is 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 real estate conditions. For a more detailed discussion of the factors that affect operating results, interested parties should review the Tanger Factory Outlet Centers, Inc. Annual Report on Form 10-K for the year ended December 31, 2019 and Quarterly Report on Form 10-Q for the six months ended June 30, 2020. | ||||||||||
(4) | Includes domestic outlet centers open 12 full calendar months (in alphabetical order): | ||||||||||
Unconsolidated: | Charlotte, NC | Columbus, OH | National Harbor, MD | Texas City, TX (Galveston/Houston) | |||||||
(5) | Includes consolidated portfolio and domestic unconsolidated joint ventures. |
Consolidated | Unconsolidated | ||||||||||||||
Tenant | Brands | # of Stores | GLA | % of Total GLA | % of Total Annualized Base Rent (2) | # of Stores | |||||||||
The Gap, Inc. | Gap, Banana Republic, Janie & Jack, Old Navy | 96 | 947,819 | 7.9 | % | 6.0 | % | 19 | |||||||
Ascena Retail Group, Inc. | LOFT, Ann Taylor, Justice, Lane Bryant | 96 | 534,084 | 4.4 | % | 4.7 | % | 12 | |||||||
PVH Corp. | Tommy Hilfiger, Van Heusen, Calvin Klein | 62 | 389,121 | 3.2 | % | 4.2 | % | 14 | |||||||
Under Armour, Inc. | Under Armour, Under Armour Kids | 30 | 233,877 | 1.9 | % | 2.8 | % | 6 | |||||||
Tapestry, Inc. | Coach, Kate Spade, Stuart Weitzman | 49 | 229,022 | 1.9 | % | 2.7 | % | 11 | |||||||
American Eagle Outfitters, Inc. | American Eagle Outfitters, Aerie | 39 | 272,104 | 2.3 | % | 2.7 | % | 7 | |||||||
Nike, Inc. | Nike, Converse, Hurley | 37 | 417,571 | 3.5 | % | 2.7 | % | 11 | |||||||
G-III Apparel Group, Ltd. | Bass, Wilsons Leather, DKNY, Karl Lagerfeld Paris | 41 | 192,405 | 1.6 | % | 2.4 | % | 5 | |||||||
Carter’s, Inc. | Carters, OshKosh B Gosh | 50 | 220,201 | 1.8 | % | 2.4 | % | 10 | |||||||
Signet Jewelers Limited | Kay Jewelers, Zales, Jared Vault | 51 | 117,204 | 1.0 | % | 2.0 | % | 8 | |||||||
Hanesbrands Inc. | Hanesbrands, Maidenform, Champion | 36 | 176,907 | 1.5 | % | 1.9 | % | 2 | |||||||
Columbia Sportswear Company | Columbia Sportswear | 20 | 154,145 | 1.3 | % | 1.9 | % | 6 | |||||||
Capri Holdings Limited | Michael Kors, Michael Kors Men’s | 27 | 133,816 | 1.1 | % | 1.9 | % | 5 | |||||||
Chico’s, FAS Inc. | Chicos, White House/Black Market, Soma Intimates | 41 | 119,031 | 1.0 | % | 1.8 | % | 5 | |||||||
Adidas AG | Adidas, Reebok | 28 | 172,283 | 1.4 | % | 1.8 | % | 9 | |||||||
Skechers USA, Inc. | Skechers | 30 | 149,167 | 1.2 | % | 1.7 | % | 6 | |||||||
V. F. Corporation | The North Face, Vans, Timberland, Dickies | 26 | 138,846 | 1.2 | % | 1.6 | % | 2 | |||||||
Ralph Lauren Corporation | Polo Ralph Lauren, Polo Children, Polo Ralph Lauren Big & Tall, Club Monaco | 33 | 358,736 | 3.0 | % | 1.6 | % | 6 | |||||||
Caleres Inc. | Famous Footwear, Naturalizer, Allen Edmonds | 32 | 166,018 | 1.4 | % | 1.6 | % | 10 | |||||||
Express Inc. | Express Factory | 23 | 160,730 | 1.3 | % | 1.6 | % | 4 | |||||||
Levi Strauss & Co. | Levi's | 29 | 121,486 | 1.0 | % | 1.5 | % | 5 | |||||||
Rack Room Shoes, Inc. | Rack Room Shoes | 22 | 129,699 | 1.1 | % | 1.5 | % | 2 | |||||||
Brooks Brothers Group, Inc. | Brooks Brothers | 23 | 134,725 | 1.1 | % | 1.4 | % | 4 | |||||||
Luxottica Group S.p.A. | Sunglass Hut, Oakley, Lenscrafters | 51 | 75,389 | 0.6 | % | 1.4 | % | 10 | |||||||
L Brands, Inc. | Bath & Body Works, Victoria's Secret, Pink by Victoria's Secret | 29 | 112,662 | 0.9 | % | 1.4 | % | 7 | |||||||
Total of Top 25 tenants | 1,001 | 5,857,048 | 48.6 | % | 57.2 | % | 186 |
(1) | Excludes leases that have been entered into but which tenant has not yet taken possession, temporary leases and month-to-month leases. |
(2) | Annualized base rent is defined as the minimum monthly payments due as of the end of the reporting period annualized, excluding periodic contractual fixed increases. Include rents which are based on a percentage of sales in lieu of fixed contractual rents. |
Six months ended | ||||||||
June 30, | ||||||||
2020 | 2019 | |||||||
Value-enhancing: | ||||||||
New center developments and expansions | $ | 942 | $ | 4,010 | ||||
Other | 11 | 686 | ||||||
953 | 4,696 | |||||||
Recurring capital expenditures: | ||||||||
Second generation tenant allowances | 6,368 | 6,050 | ||||||
Operational capital expenditures | 5,260 | 9,607 | ||||||
Renovations | 3,932 | 290 | ||||||
15,560 | 15,947 | |||||||
Total additions to rental property-accrual basis | 16,513 | 20,643 | ||||||
Conversion from accrual to cash basis | (37 | ) | 1,759 | |||||
Total additions to rental property-cash basis | $ | 16,476 | $ | 22,402 |
Re-tenant(1) | |||||||||||||||
Trailing twelve months ended: | # of Leases | Square Feet (in 000’s) | Average Annual Straight-line Rent (psf) | Average Tenant Allowance (psf)(2) | Average Initial Term (in years) | Net Average Annual Straight-line Rent (psf) (3) | |||||||||
6/30/2020 | 111 | 510 | $ | 35.67 | $ | 48.85 | 7.72 | $ | 29.34 | ||||||
6/30/2019 | 83 | 420 | $ | 33.93 | $ | 43.37 | 8.65 | $ | 28.92 | ||||||
Renewal(1) | |||||||||||||||
Trailing twelve months ended: | # of Leases | Square Feet (in 000’s) | Average Annual Straight-line Rent (psf) | Average Tenant Allowance (psf)(2) | Average Initial Term (in years) | Net Average Annual Straight-line Rent (psf) (3) | |||||||||
6/30/2020 | 185 | 935 | $ | 27.36 | $ | 0.95 | 3.91 | $ | 27.12 | ||||||
6/30/2019 | 255 | 1,200 | $ | 34.58 | $ | 0.58 | 3.78 | $ | 34.43 | ||||||
Total(1) | |||||||||||||||
Trailing twelve months ended: | # of Leases | Square Feet (in 000’s) | Average Annual Straight-line Rent (psf) | Average Tenant Allowance (psf)(2) | Average Initial Term (in years) | Net Average Annual Straight-line Rent (psf) (3) | |||||||||
6/30/2020 | 296 | 1,445 | $ | 30.29 | $ | 17.85 | 5.25 | $ | 26.89 | ||||||
6/30/2019 | 338 | 1,620 | $ | 34.42 | $ | 11.66 | 5.04 | $ | 32.11 |
(1) | Represents change in rent (base rent and common area maintenance (“CAM”)) for all leases for new stores that opened or renewals that started during the respective trailing twelve month periods within the consolidated portfolio, except for license agreements, seasonal tenants, and month-to-month leases. |
(2) | Includes other landlord costs. |
(3) | Net average straight-line base rent is calculated by dividing the average tenant allowance costs per square foot by the average initial term and subtracting this calculated number from the average straight-line base rent per year amount. The average annual straight-line base rent disclosed in the table above includes all concessions, abatements and reimbursements of rent to tenants. The average tenant allowance disclosed in the table above includes other landlord costs. |
TTM ended | TTM ended | |||||
All Lease Terms | 6/30/2020 | 6/30/2019 | ||||
Re-tenanted Space: | ||||||
Number of leases | 111 | 83 | ||||
Gross leasable area | 509,749 | 419,627 | ||||
New initial rent per square foot | $ | 32.38 | $ | 30.69 | ||
Prior expiring rent per square foot | $ | 34.65 | $ | 30.90 | ||
Percent decrease | (6.5 | )% | (0.7 | )% | ||
New straight-line rent per square foot | $ | 35.67 | $ | 33.93 | ||
Prior straight-line rent per square foot | $ | 33.60 | $ | 31.37 | ||
Percent increase | 6.1 | % | 8.2 | % | ||
Renewed Space: | ||||||
Number of leases | 185 | 255 | ||||
Gross leasable area | 935,117 | 1,199,972 | ||||
New initial rent per square foot | $ | 26.66 | $ | 33.44 | ||
Prior expiring rent per square foot | $ | 28.53 | $ | 33.64 | ||
Percent decrease | (6.5 | )% | (0.6 | )% | ||
New straight-line rent per square foot | $ | 27.36 | $ | 34.58 | ||
Prior straight-line rent per square foot | $ | 29.01 | $ | 33.91 | ||
Percent increase (decrease) | (5.7 | )% | 2.0 | % | ||
Total Re-tenanted and Renewed Space: | ||||||
Number of leases | 296 | 338 | ||||
Gross leasable area | 1,444,866 | 1,619,599 | ||||
New initial rent per square foot | $ | 28.68 | $ | 32.73 | ||
Prior expiring rent per square foot | $ | 30.69 | $ | 32.93 | ||
Percent decrease | (6.5 | )% | (0.6 | )% | ||
New straight-line rent per square foot | $ | 30.29 | $ | 34.42 | ||
Prior straight-line rent per square foot | $ | 30.63 | $ | 33.26 | ||
Percent increase (decrease) | (1.1 | )% | 3.5 | % |
(1) | For consolidated properties owned as of the period-end date. Represents change in rent (base rent and CAM) for all leases for new stores that opened or renewals that started during the respective trailing twelve month periods, except for license agreements, seasonal tenants, and month-to-month leases. |
TTM ended | TTM ended | |||||
Terms of More Than 12 Months | 6/30/2020 | 6/30/2019 | ||||
Re-tenanted Space: | ||||||
Number of leases | 110 | 81 | ||||
Gross leasable area | 506,251 | 414,377 | ||||
New initial rent per square foot | $ | 32.45 | $ | 30.65 | ||
Prior expiring rent per square foot | $ | 34.64 | $ | 30.73 | ||
Percent decrease | (6.3 | )% | (0.3 | )% | ||
New straight-line rent per square foot | $ | 35.76 | $ | 33.93 | ||
Prior straight-line rent per square foot | $ | 33.59 | $ | 31.21 | ||
Percent increase | 6.5 | % | 8.7 | % | ||
Renewed Space: | ||||||
Number of leases | 152 | 221 | ||||
Gross leasable area | 800,821 | 1,044,462 | ||||
New initial rent per square foot | $ | 27.46 | $ | 34.69 | ||
Prior expiring rent per square foot | $ | 29.06 | $ | 34.20 | ||
Percent increase (decrease) | (5.5 | )% | 1.4 | % | ||
New straight-line rent per square foot | $ | 28.27 | $ | 36.00 | ||
Prior straight-line rent per square foot | $ | 29.66 | $ | 34.59 | ||
Percent increase (decrease) | (4.7 | )% | 4.1 | % | ||
Total Re-tenanted and Renewed Space: | ||||||
Number of leases | 262 | 302 | ||||
Gross leasable area | 1,307,072 | 1,458,839 | ||||
New initial rent per square foot | $ | 29.39 | $ | 33.54 | ||
Prior expiring rent per square foot | $ | 31.22 | $ | 33.22 | ||
Percent increase (decrease) | (5.8 | )% | 1.0 | % | ||
New straight-line rent per square foot | $ | 31.17 | $ | 35.42 | ||
Prior straight-line rent per square foot | $ | 31.18 | $ | 33.63 | ||
Percent increase (decrease) | (0.1 | )% | 5.3 | % |
(1) | For consolidated properties owned as of the period-end date. Represents change in rent (base rent and CAM) for leases for a term of more than 12 months for new stores that opened or renewals that started during the respective trailing twelve month periods. |
June 30, | December 31, | ||||||
2020 | 2019 | ||||||
Assets | |||||||
Rental property: | |||||||
Land | $ | 266,537 | $ | 266,537 | |||
Buildings, improvements and fixtures | 2,571,971 | 2,630,357 | |||||
2,838,508 | 2,896,894 | ||||||
Accumulated depreciation | (1,032,784 | ) | (1,009,951 | ) | |||
Total rental property, net | 1,805,724 | 1,886,943 | |||||
Cash and cash equivalents | 338,606 | 16,672 | |||||
Investments in unconsolidated joint ventures | 92,150 | 94,691 | |||||
Deferred lease costs and other intangibles, net | 94,757 | 96,712 | |||||
Operating lease right-of-use assets | 83,489 | 86,575 | |||||
Prepaids and other assets | 149,066 | 103,618 | |||||
Total assets | $ | 2,563,792 | $ | 2,285,211 | |||
Liabilities and Equity | |||||||
Liabilities | |||||||
Debt: | |||||||
Senior, unsecured notes, net | $ | 1,139,585 | $ | 1,138,603 | |||
Unsecured term loan, net | 347,003 | 347,367 | |||||
Mortgages payable, net | 81,897 | 83,803 | |||||
Unsecured lines of credit, net | 397,407 | — | |||||
Total debt | 1,965,892 | 1,569,773 | |||||
Accounts payable and accrued expenses | 70,895 | 79,562 | |||||
Operating lease liabilities (1) | 90,793 | 91,237 | |||||
Other liabilities | 106,229 | 88,530 | |||||
Total liabilities | 2,233,809 | 1,829,102 | |||||
Commitments and contingencies | |||||||
Equity | |||||||
Tanger Factory Outlet Centers, Inc.: | |||||||
Common shares, $.01 par value, 300,000,000 shares authorized, 93,472,267 and 92,892,260 shares issued and outstanding at June 30, 2020 and December 31 2019, respectively | 935 | 929 | |||||
Paid in capital | 781,485 | 775,035 | |||||
Accumulated distributions in excess of net income | (433,396 | ) | (317,263 | ) | |||
Accumulated other comprehensive loss | (35,513 | ) | (25,495 | ) | |||
Equity attributable to Tanger Factory Outlet Centers, Inc. | 313,511 | 433,206 | |||||
Equity attributable to noncontrolling interests: | |||||||
Noncontrolling interests in Operating Partnership | 16,472 | 22,903 | |||||
Noncontrolling interests in other consolidated partnerships | — | — | |||||
Total equity | 329,983 | 456,109 | |||||
Total liabilities and equity | $ | 2,563,792 | $ | 2,285,211 |
Three months ended | Six months ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenues: | |||||||||||||||
Rental revenues | $ | 62,273 | $ | 112,385 | $ | 170,831 | $ | 232,339 | |||||||
Management, leasing and other services | 725 | 1,245 | 2,168 | 2,587 | |||||||||||
Other revenues | 992 | 2,077 | 2,624 | 3,936 | |||||||||||
Total revenues | 63,990 | 115,707 | 175,623 | 238,862 | |||||||||||
Expenses: | |||||||||||||||
Property operating | 28,158 | 36,726 | 66,785 | 79,103 | |||||||||||
General and administrative | 11,566 | 16,473 | 24,150 | 28,618 | |||||||||||
Impairment charge | — | — | 45,675 | — | |||||||||||
Depreciation and amortization | 28,646 | 31,146 | 58,063 | 62,906 | |||||||||||
Total expenses | 68,370 | 84,345 | 194,673 | 170,627 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense | (16,943 | ) | (15,134 | ) | (32,139 | ) | (31,441 | ) | |||||||
Gain on sale of assets | — | — | — | 43,422 | |||||||||||
Other income (expense) | 408 | (3,417 | ) | 628 | (3,193 | ) | |||||||||
Total other income (expense) | (16,535 | ) | (18,551 | ) | (31,511 | ) | 8,788 | ||||||||
Income (loss) before equity in earnings of unconsolidated joint ventures | (20,915 | ) | 12,811 | (50,561 | ) | 77,023 | |||||||||
Equity in earnings (losses) of unconsolidated joint ventures | (2,975 | ) | 1,646 | (1,448 | ) | 3,275 | |||||||||
Net income (loss) | (23,890 | ) | 14,457 | (52,009 | ) | 80,298 | |||||||||
Noncontrolling interests in Operating Partnership | 1,202 | (730 | ) | 2,629 | (4,045 | ) | |||||||||
Noncontrolling interests in other consolidated partnerships | — | — | (190 | ) | (195 | ) | |||||||||
Net income (loss) attributable to Tanger Factory Outlet Centers, Inc. | (22,688 | ) | 13,727 | (49,570 | ) | 76,058 | |||||||||
Allocation of earnings to participating securities | (176 | ) | (114 | ) | (692 | ) | (725 | ) | |||||||
Net income (loss) available to common shareholders of Tanger Factory Outlet Centers, Inc. | $ | (22,864 | ) | $ | 13,613 | $ | (50,262 | ) | $ | 75,333 | |||||
Basic earnings per common share: | |||||||||||||||
Net income (loss) | $ | (0.25 | ) | $ | 0.15 | $ | (0.54 | ) | $ | 0.81 | |||||
Diluted earnings per common share: | |||||||||||||||
Net income (loss) | $ | (0.25 | ) | $ | 0.15 | $ | (0.54 | ) | $ | 0.81 |
Three months ended | Six months ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Rental revenues: | |||||||||||||||
Base rentals | $ | 52,405 | $ | 76,047 | $ | 124,978 | $ | 155,147 | |||||||
Percentage rentals | 475 | 2,018 | 2,149 | 3,583 | |||||||||||
Tenant expense reimbursements | 20,725 | 31,359 | 54,104 | 68,527 | |||||||||||
Lease termination fees | 1,514 | 269 | 1,677 | 1,399 | |||||||||||
Market rent adjustments | 44 | (180 | ) | (225 | ) | (550 | ) | ||||||||
Straight-line rent adjustments | (2,549 | ) | 2,916 | (677 | ) | 4,886 | |||||||||
Uncollectible tenant revenues | (10,341 | ) | (44 | ) | (11,175 | ) | (653 | ) | |||||||
Rental revenues | $ | 62,273 | $ | 112,385 | $ | 170,831 | $ | 232,339 |
2Q Rents Billed (1) | % of Billed | % of Net Rents Recognized Before Reserves & Straight-line Adjustments | |||||
Collection Status (as of July 31, 2020) | |||||||
Paid | $ | 32,580 | 33 | % | 45 | % | |
Expected | 9,788 | 10 | % | 13 | % | ||
Payment received or expected | $ | 42,368 | 43 | % | 58 | % | |
Deferred | 25,558 | 26 | % | 35 | % | ||
Under negotiation | 5,389 | 6 | % | 7 | % | ||
Deferred or under negotiation | $ | 30,947 | 32 | % | 42 | % | |
Net rents recognized before reserves & straight-line adjustments | $ | 73,315 | 75 | % | 100 | % | |
One-time rent concessions in exchange for landlord-favorable amendments to lease structure | 13,852 | 14 | % | ||||
Bankruptcy related, primarily pre-petition rents | 8,894 | 9 | % | ||||
At risk due to tenant financial weakness | 1,447 | 2 | % | ||||
Do not expect to collect (written off in 2Q) | $ | 24,193 | 25 | % | |||
Total rents billed | $ | 97,508 | 100 | % | |||
(1) Excludes variable revenue which is derived from tenant sales and lease termination fees. |
Written Off | Reserved | Total Impact | |||||||
Rental Revenue Impact | |||||||||
Base rentals | $ | 9,697 | $ | 6,760 | $ | 16,457 | |||
Tenant reimbursements | 4,155 | 2,897 | 7,052 | ||||||
Uncollectible tenant rents | 10,341 | — | 10,341 | ||||||
Total before straight-line rent adjustments | $ | 24,193 | $ | 9,657 | $ | 33,850 | |||
Straight-line rent adjustments | 3,726 | — | 3,726 | ||||||
Total rental revenues impact | $ | 27,919 | $ | 9,657 | $ | 37,576 |
Joint Venture | Center Location | Tanger’s Ownership % | Square Feet | Tanger’s Share of Total Assets | Tanger’s Share of NOI | Tanger’s Share of Net Debt (1) | ||||||||||||||
Charlotte | Charlotte, NC | 50.0 | % | 398,676 | $ | 38.8 | $ | 3.0 | $ | 49.8 | ||||||||||
Columbus | Columbus, OH | 50.0 | % | 355,245 | 39.8 | 2.2 | 42.5 | |||||||||||||
Galveston/Houston | Texas City, TX | 50.0 | % | 352,705 | 20.3 | 1.4 | 40.0 | |||||||||||||
National Harbor | National Harbor, MD | 50.0 | % | 341,156 | 40.0 | 1.8 | 47.2 | |||||||||||||
RioCan Canada (2) | Various | 50.0 | % | 764,518 | 92.1 | 2.7 | — | |||||||||||||
Total | 2,212,300 | $ | 231.0 | $ | 11.1 | $ | 179.5 |
(1) | Net of debt origination costs and premiums. |
(2) | Includes a 307,895 square foot outlet center in Cookstown, Ontario; a 357,218 square foot outlet center in Ottawa, Ontario; and a 99,405 square foot outlet center in Saint-Sauveur, Quebec. |
Total Debt Outstanding | Our Share of Debt | Stated Interest Rate | End of Period Effective Interest Rate(1) | Maturity Date (2) | Weighted Average Years to Maturity (2) | |||||||||||||
Consolidated Debt: | ||||||||||||||||||
Unsecured debt: | ||||||||||||||||||
Unsecured lines of credit(3) | $ | 399,830 | $ | 399,830 | LIBOR(4) + 1.0% | 1.3 | % | 10/28/2022 | 2.3 | |||||||||
2023 Senior unsecured notes | 250,000 | 250,000 | 3.875% | 4.1 | % | 12/1/2023 | 3.4 | |||||||||||
2024 Senior unsecured notes | 250,000 | 250,000 | 3.75 | % | 3.8 | % | 12/1/2024 | 4.4 | ||||||||||
2026 Senior unsecured notes | 350,000 | 350,000 | 3.125 | % | 3.2 | % | 9/1/2026 | 6.2 | ||||||||||
2027 Senior unsecured notes | 300,000 | 300,000 | 3.875 | % | 3.9 | % | 7/15/2027 | 7.0 | ||||||||||
Unsecured term loan | 350,000 | 350,000 | LIBOR(4) + 1.0% | 2.6 | % | 4/22/2024 | 3.8 | |||||||||||
Net debt discounts and debt origination costs | (15,835 | ) | (15,835 | ) | ||||||||||||||
Total net unsecured debt | 1,883,995 | 1,883,995 | 3.0 | % | 4.5 | |||||||||||||
Secured mortgage debt: | ||||||||||||||||||
Atlantic City, NJ | 29,151 | 29,151 | 5.14% - 7.65% | 5.1 | % | 11/15/2021 - 12/8/2026 | 4.8 | |||||||||||
Southaven, MS | 51,400 | 51,400 | LIBOR + 1.80% | 3.8 | % | 4/29/2023 | 2.8 | |||||||||||
Debt premium and debt origination costs | 1,346 | 1,346 | ||||||||||||||||
Total net secured mortgage debt | 81,897 | 81,897 | 4.2 | % | 3.5 | |||||||||||||
Total consolidated debt | 1,965,892 | 1,965,892 | 3.1 | % | 4.4 | |||||||||||||
Unconsolidated JV debt: | ||||||||||||||||||
Charlotte | 100,000 | 50,000 | 4.27 | % | 4.3 | % | 7/1/2028 | 8.0 | ||||||||||
Columbus | 85,000 | 42,500 | LIBOR + 1.65% | 1.8 | % | 11/28/2021 | 1.4 | |||||||||||
Galveston/Houston | 80,000 | 40,000 | LIBOR + 1.65% | 1.8 | % | 7/1/2022 | 2.0 | |||||||||||
National Harbor | 94,998 | 47,499 | 4.63 | % | 4.6 | % | 1/5/2030 | 9.5 | ||||||||||
Debt origination costs | (1,076 | ) | (538 | ) | ||||||||||||||
Total unconsolidated JV net debt | 358,922 | 179,461 | 3.2 | % | 5.5 | |||||||||||||
Total | $ | 2,324,814 | $ | 2,145,353 | 3.1 | % | 4.6 |
(1) | The effective interest rate includes the impact of discounts and premiums and interest rate swap agreements, as applicable. See page 20 for additional details. |
(2) | Includes applicable extensions available at our option. |
(3) | The Company has unsecured lines of credit that provide for borrowings of up to $600.0 million. The unsecured lines of credit include a $20.0 million liquidity line and a $580.0 million syndicated line. A 20 basis point facility fee is due annually on the entire committed amount of each facility. The syndicated line may be increased up to $1.2 billion through an accordion feature in certain circumstances. |
(4) | If LIBOR is less than 0.25% per annum, the rate will be deemed to be 0.25%. |
Total Debt % | Our Share of Debt | End of Period Effective Interest Rate | Average Years to Maturity (1) | |||||||||
Consolidated: | ||||||||||||
Fixed (2) | 79 | % | $ | 1,557,163 | 3.6 | % | 5.0 | |||||
Variable | 21 | % | 408,729 | 1.3 | % | 2.3 | ||||||
100 | % | 1,965,892 | 3.1 | % | 4.4 | |||||||
Unconsolidated Joint ventures: | ||||||||||||
Fixed | 54 | % | $ | 97,019 | 4.4 | % | 8.7 | |||||
Variable | 46 | % | 82,442 | 1.8 | % | 1.7 | ||||||
100 | % | 179,461 | 3.2 | % | 5.5 | |||||||
Total: | ||||||||||||
Fixed | 77 | % | $ | 1,654,182 | 3.7 | % | 5.4 | |||||
Variable | 23 | % | 491,171 | 1.4 | % | 2.2 | ||||||
Total share of debt | 100 | % | $ | 2,145,353 | 3.1 | % | 4.6 |
(1) | Includes applicable extensions available at our option. |
(2) | The effective interest rate includes interest rate swap agreements that fix the base LIBOR rate at a weighted average of 1.7% on notional amounts aggregating $390.0 million as follows: |
Effective Date | Maturity Date | Notional Amount | Bank Pay Rate | Company Fixed Pay Rate | ||||||||
Interest rate swaps: | ||||||||||||
April 13, 2016 | January 1, 2021 | $ | 175,000 | 1 | month LIBOR | 1.03 | % | |||||
March 1, 2018 | January 31, 2021 | 40,000 | 1 | month LIBOR | 2.47 | % | ||||||
August 14, 2018 | January 1, 2021 | 150,000 | 1 | month LIBOR | 2.20 | % | ||||||
July 1, 2019 | February 1, 2024 | 25,000 | 1 | month LIBOR | 1.75 | % | ||||||
Total | $ | 390,000 | ||||||||||
Forward starting interest rate swap agreements: | ||||||||||||
January 1, 2021 | February 1, 2024 | $ | 150,000 | 1 | month LIBOR | 0.60 | % | |||||
January 1, 2021 | February 1, 2024 | $ | 100,000 | 1 | month LIBOR | 0.22 | % |
Year | Tanger Consolidated Payments | Tanger’s Share of Unconsolidated JV Payments | Total Scheduled Payments | ||||||||
2020 | $ | 1,808 | $ | — | $ | 1,808 | |||||
2021 | 5,793 | 42,500 | 48,293 | ||||||||
2022(2) | 404,266 | 40,000 | 444,266 | ||||||||
2023 | 306,168 | 1,031 | 307,199 | ||||||||
2024 | 605,140 | 1,636 | 606,776 | ||||||||
2025 | 1,501 | 1,710 | 3,211 | ||||||||
2026 | 355,705 | 1,788 | 357,493 | ||||||||
2027 | 300,000 | 1,869 | 301,869 | ||||||||
2028 | — | 46,944 | 46,944 | ||||||||
2029 | — | 984 | 984 | ||||||||
2030 & thereafter | — | 41,537 | 41,537 | ||||||||
$ | 1,980,381 | $ | 179,999 | $ | 2,160,380 | ||||||
Net debt discounts and debt origination costs | (14,489 | ) | (538 | ) | (15,027 | ) | |||||
$ | 1,965,892 | $ | 179,461 | $ | 2,145,353 |
(1) | Includes applicable extensions available at our option. |
(2) | Includes principal balance of $399.8 million outstanding under the Company’s unsecured lines of credit. |
Required | Actual | Compliance | ||||
Total Consolidated Debt to Adjusted Total Assets | <60% | 53 | % | Yes | ||
Total Secured Debt to Adjusted Total Assets | <40% | 3 | % | Yes | ||
Total Unencumbered Assets to Unsecured Debt | >150% | 180 | % | Yes | ||
Consolidated Income Available for Debt Service to Annual Debt Service Charge | >1.5 | 4.1 | Yes |
(1) | For a complete listing of all debt covenants related to the Company’s Senior Unsecured Notes, as well as definitions of the above terms, please refer to the Company’s filings with the Securities and Exchange Commission. |
Required | Actual | Compliance | ||||
Total Liabilities to Total Adjusted Asset Value | <60% | 42 | % | Yes | ||
Secured Indebtedness to Adjusted Unencumbered Asset Value | <35% | 5 | % | Yes | ||
EBITDA to Fixed Charges | >1.5 | 3.5 | Yes | |||
Total Unsecured Indebtedness to Adjusted Unencumbered Asset Value | <60% | 37 | % | Yes | ||
Unencumbered Interest Coverage Ratio | >1.5 | 4.1 | Yes |
(1) | For a complete listing of all debt covenants related to the Company’s Unsecured Lines of Credit & Term Loan, as well as definitions of the above terms, please refer to the Company’s filings with the Securities and Exchange Commission. |
June 30, | December 31, | |||||||
2020 | 2019 | |||||||
Enterprise Value: | ||||||||
Market value: | ||||||||
Common shares outstanding | 93,472 | 92,892 | ||||||
Exchangeable operating partnership units | 4,911 | 4,911 | ||||||
Total shares | 98,383 | 97,803 | ||||||
Common share price | $ | 7.13 | $ | 14.73 | ||||
Total market value (1) | $ | 701,474 | $ | 1,440,645 | ||||
Debt: | ||||||||
Senior, unsecured notes | $ | 1,150,000 | $ | 1,150,000 | ||||
Unsecured term loans | 350,000 | 350,000 | ||||||
Mortgages payable | 80,551 | 82,309 | ||||||
Unsecured lines of credit | 399,830 | — | ||||||
Total principal debt | 1,980,381 | 1,582,309 | ||||||
Less: Net debt discounts | (3,098 | ) | (3,334 | ) | ||||
Less: Debt origination costs | (11,391 | ) | (9,202 | ) | ||||
Total debt | 1,965,892 | 1,569,773 | ||||||
Total enterprise value | $ | 2,667,366 | $ | 3,010,418 | ||||
Net Debt: | ||||||||
Total debt | $ | 1,965,892 | $ | 1,569,773 | ||||
Less: Cash and cash equivalents | (338,606 | ) | (16,672 | ) | ||||
Net debt | $ | 1,627,286 | $ | 1,553,101 | ||||
Liquidity: | ||||||||
Cash and cash equivalents | $ | 338,606 | $ | 16,672 | ||||
Unused capacity under unsecured lines of credit (2) | 200,170 | 599,830 | ||||||
Total liquidity | $ | 538,776 | $ | 616,502 | ||||
Ratios (3): | ||||||||
Net debt to Adjusted EBITDA (4) | 7.1 | x | 5.5 | x | ||||
Interest coverage (Adjusted EBITDA / interest expense) (4) | 3.6 | x | 4.5 | x |
(1) | Amounts may not recalculate due to the effect of rounding. |
(2) | Unused capacity under the Company’s $600.0 million unsecured lines of credit is reduced by $170,000 at December 31, 2019 related to outstanding letters of credit (none at June 30, 2020). |
(3) | Ratios are presented for the trailing twelve-month period. |
(4) | Adjusted EBITDA is a non-GAAP measure. Refer to page 28 for a reconciliation of net income to Adjusted EBITDA. |
Credit Ratings and Outlook: | |||
Moody’s Investors Services | Baa2 | Negative | |
Standard & Poor’s Ratings Services | BBB | Negative |
• | FFO does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments; |
• | FFO does not reflect changes in, or cash requirements for, our working capital needs; |
• | Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and FFO does not reflect any cash requirements for such replacements; and |
• | Other companies in our industry may calculate FFO differently than we do, limiting its usefulness as a comparative measure. |
• | Core FFO does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments; |
• | Core FFO does not reflect changes in, or cash requirements for, our working capital needs; |
• | Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Core FFO does not reflect any cash requirements for such replacements; |
• | Core FFO does not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of our ongoing operations; and |
• | Other companies in our industry may calculate Core FFO differently than we do, limiting its usefulness as a comparative measure. |
• | They do not reflect our interest expense; |
• | They do not reflect gains or losses on sales of operating properties or impairment write-downs of depreciated property and of investment in unconsolidated joint ventures caused by a decrease in value of depreciated property in the affiliate; |
• | Adjusted EBITDA and Adjusted EBITDAre do not reflect gains and losses on extinguishment of debt and other items that may affect operations; and |
• | Other companies in our industry may calculate these measures differently than we do, limiting its usefulness as a comparative measure. |
• | The amounts shown on the individual line items were derived by applying our overall economic ownership interest percentage determined when applying the equity method of accounting and do not necessarily represent our legal claim to the assets and liabilities, or the revenues and expenses; and |
• | Other companies in our industry may calculate their pro rata interest differently than we do, limiting the usefulness as a comparative measure. |
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net income (loss) | $ | (23,890 | ) | $ | 14,457 | $ | (52,009 | ) | $ | 80,298 | ||||||
Adjusted for: | ||||||||||||||||
Depreciation and amortization of real estate assets - consolidated | 28,057 | 30,550 | 56,858 | 61,698 | ||||||||||||
Depreciation and amortization of real estate assets - unconsolidated joint ventures | 3,017 | 3,265 | 6,035 | 6,395 | ||||||||||||
Impairment charge - consolidated | — | — | 45,675 | — | ||||||||||||
Impairment charge - unconsolidated joint ventures | 3,091 | — | 3,091 | — | ||||||||||||
Foreign currency loss from sale of joint venture property | — | 3,641 | — | 3,641 | ||||||||||||
Gain on sale of assets | — | — | — | (43,422 | ) | |||||||||||
FFO | 10,275 | 51,913 | 59,650 | 108,610 | ||||||||||||
FFO attributable to noncontrolling interests in other consolidated partnerships | — | — | (190 | ) | (195 | ) | ||||||||||
Allocation of earnings to participating securities | (281 | ) | (410 | ) | (692 | ) | (1,021 | ) | ||||||||
FFO available to common shareholders (1) | $ | 9,994 | $ | 51,503 | $ | 58,768 | $ | 107,394 | ||||||||
As further adjusted for: | ||||||||||||||||
Compensation related to executive officer retirement (2) | — | 4,371 | — | 4,371 | ||||||||||||
Impact of above adjustment to the allocation of earnings to participating securities | — | (35 | ) | — | (35 | ) | ||||||||||
Core FFO available to common shareholders (1) | $ | 9,994 | $ | 55,839 | $ | 58,768 | $ | 111,730 | ||||||||
FFO available to common shareholders per share - diluted (1) | $ | 0.10 | $ | 0.52 | $ | 0.60 | $ | 1.09 | ||||||||
Core FFO available to common shareholders per share - diluted (1) | $ | 0.10 | $ | 0.57 | $ | 0.60 | $ | 1.14 | ||||||||
Weighted Average Shares: | ||||||||||||||||
Basic weighted average common shares | 92,632 | 93,187 | 92,569 | 93,245 | ||||||||||||
Diluted weighted average common shares (for earnings per share computations) | 92,632 | 93,187 | 92,569 | 93,245 | ||||||||||||
Exchangeable operating partnership units | 4,911 | 4,960 | 4,911 | 4,960 | ||||||||||||
Diluted weighted average common shares (for FFO per share computations) (1) | 97,543 | 98,147 | 97,480 | 98,205 |
(1) | Assumes the Class A common limited partnership units of the Operating Partnership held by the noncontrolling interests are exchanged for common shares of the Company. Each Class A common limited partnership unit is exchangeable for one of the Company’s common shares, subject to certain limitations to preserve the Company’s REIT status. |
(2) | Represents the accelerated recognition of compensation cost entitled to be received by the Company’s former President and Chief Operating Officer per the terms of a transition agreement executed in connection with his retirement. |
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
FFO available to common shareholders | $ | 9,994 | $ | 51,503 | $ | 58,768 | $ | 107,394 | ||||||||
Adjusted for: | ||||||||||||||||
Corporate depreciation excluded above | 589 | 596 | 1,205 | 1,208 | ||||||||||||
Amortization of finance costs | 833 | 750 | 1,590 | 1,497 | ||||||||||||
Amortization of net debt discount (premium) | 119 | 111 | 237 | 220 | ||||||||||||
Amortization of equity-based compensation | 3,431 | 6,982 | 7,219 | 10,800 | ||||||||||||
Straight-line rent adjustments | 2,550 | (2,916 | ) | 677 | (4,886 | ) | ||||||||||
Market rent adjustments | 49 | 273 | 411 | 753 | ||||||||||||
Second generation tenant allowances and lease incentives | (5,809 | ) | (3,076 | ) | (11,538 | ) | (6,050 | ) | ||||||||
Capital improvements | (4,046 | ) | (6,848 | ) | (9,192 | ) | (9,897 | ) | ||||||||
Adjustments from unconsolidated joint ventures | (89 | ) | (798 | ) | (121 | ) | (1,204 | ) | ||||||||
FAD available to common shareholders (1) | $ | 7,621 | $ | 46,577 | $ | 49,256 | $ | 99,835 | ||||||||
Dividends per share | $ | 0.3575 | $ | 0.3550 | $ | 0.7125 | $ | 0.7050 | ||||||||
FFO payout ratio | 358 | % | 68 | % | 119 | % | 65 | % | ||||||||
FAD payout ratio | 447 | % | 76 | % | 140 | % | 69 | % | ||||||||
Diluted weighted average common shares (1) | 97,543 | 98,147 | 97,480 | 98,205 |
(1) | Assumes the Class A common limited partnership units of the Operating Partnership held by the noncontrolling interests are exchanged for common shares of the Company. Each Class A common limited partnership unit is exchangeable for one of the Company’s common shares, subject to certain limitations to preserve the Company’s REIT status. |
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net income (loss) | $ | (23,890 | ) | $ | 14,457 | $ | (52,009 | ) | $ | 80,298 | ||||||
Adjusted to exclude: | ||||||||||||||||
Equity in (earnings) losses of unconsolidated joint ventures | 2,975 | (1,646 | ) | 1,448 | (3,275 | ) | ||||||||||
Interest expense | 16,943 | 15,134 | 32,139 | 31,441 | ||||||||||||
Gain on sale of assets | — | — | — | (43,422 | ) | |||||||||||
Other (income) expense | (408 | ) | 3,417 | (628 | ) | 3,193 | ||||||||||
Impairment charge | — | — | 45,675 | — | ||||||||||||
Depreciation and amortization | 28,646 | 31,146 | 58,063 | 62,906 | ||||||||||||
Other non-property expenses | 323 | 180 | 461 | 331 | ||||||||||||
Corporate general and administrative expenses | 11,715 | 16,635 | 24,294 | 28,767 | ||||||||||||
Non-cash adjustments (1) | 2,621 | (2,628 | ) | 1,119 | (4,100 | ) | ||||||||||
Lease termination fees | (1,514 | ) | (269 | ) | (1,677 | ) | (1,399 | ) | ||||||||
Portfolio NOI | 37,411 | 76,426 | 108,885 | 154,740 | ||||||||||||
Non-same center NOI (2) | — | (23 | ) | — | (4,108 | ) | ||||||||||
Same Center NOI | $ | 37,411 | $ | 76,403 | $ | 108,885 | $ | 150,632 |
(1) | Non-cash items include straight-line rent, above and below market rent amortization, straight-line rent expense on land leases and gains or losses on outparcel sales, as applicable. |
(2) | Excluded from Same Center NOI: |
Outlet centers sold: | |
Nags Head, Ocean City, Park City, and Williamsburg | March 2019 |
Three months ended | Six months ended | |||||||||||||||||||
June 30, | % | June 30, | % | |||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | |||||||||||||||
Same Center Revenues: | ||||||||||||||||||||
Rental revenues | $ | 63,265 | $ | 109,404 | (42.2 | )% | $ | 170,056 | $ | 220,023 | (22.7 | )% | ||||||||
Other revenues | 1,195 | 2,184 | (45.3 | ) | 2,991 | 4,077 | (26.6 | ) | ||||||||||||
Total same center revenues | 64,460 | 111,588 | (42.2 | ) | 173,047 | 224,100 | (22.8 | ) | ||||||||||||
Same Center Expenses: | ||||||||||||||||||||
Property operating | 27,037 | 35,163 | (23.1 | ) | 64,145 | 73,422 | (12.6 | ) | ||||||||||||
General and administrative | 12 | 22 | (45.5 | ) | 17 | 46 | (63.0 | ) | ||||||||||||
Total same center expenses | 27,049 | 35,185 | (23.1 | ) | 64,162 | 73,468 | (12.7 | ) | ||||||||||||
Same Center NOI | $ | 37,411 | $ | 76,403 | (51.0 | )% | $ | 108,885 | $ | 150,632 | (27.7 | )% |
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net income (loss) | $ | (23,890 | ) | $ | 14,457 | $ | (52,009 | ) | $ | 80,298 | ||||||
Adjusted to exclude: | ||||||||||||||||
Interest expense | 16,943 | 15,134 | 32,139 | 31,441 | ||||||||||||
Depreciation and amortization | 28,646 | 31,146 | 58,063 | 62,906 | ||||||||||||
Impairment charge - consolidated | — | — | 45,675 | — | ||||||||||||
Impairment charge - unconsolidated joint ventures | 3,091 | — | 3,091 | — | ||||||||||||
Loss on sale of joint venture property, including foreign currency effect | — | 3,641 | — | 3,641 | ||||||||||||
Gain on sale of assets | — | — | — | (43,422 | ) | |||||||||||
Compensation related to executive officer retirement | — | 4,371 | — | 4,371 | ||||||||||||
Adjusted EBITDA | $ | 24,790 | $ | 68,749 | $ | 86,959 | $ | 139,235 |
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net income (loss) | $ | (23,890 | ) | $ | 14,457 | $ | (52,009 | ) | $ | 80,298 | ||||||
Adjusted to exclude: | — | — | ||||||||||||||
Interest expense | 16,943 | 15,134 | 32,139 | 31,441 | ||||||||||||
Depreciation and amortization | 28,646 | 31,146 | 58,063 | 62,906 | ||||||||||||
Impairment charge - consolidated | — | — | 45,675 | — | ||||||||||||
Impairment charge - unconsolidated joint ventures | 3,091 | — | 3,091 | — | ||||||||||||
Loss on sale of joint venture property, including foreign currency effect | — | 3,641 | — | 3,641 | ||||||||||||
Gain on sale of assets | — | — | — | (43,422 | ) | |||||||||||
Pro-rata share of interest expense - unconsolidated joint ventures | 1,616 | 2,069 | 3,484 | 4,135 | ||||||||||||
Pro-rata share of depreciation and amortization - unconsolidated joint ventures | 3,018 | 3,265 | 6,035 | 6,343 | ||||||||||||
EBITDAre | $ | 29,424 | $ | 69,712 | $ | 96,478 | $ | 145,342 | ||||||||
Compensation related to executive officer retirement | — | 4,371 | — | 4,371 | ||||||||||||
Adjusted EBITDAre | $ | 29,424 | $ | 74,083 | $ | 96,478 | $ | 149,713 |
Non-GAAP | |||
Pro Rata Portion Unconsolidated Joint Ventures (1) | |||
Assets | |||
Rental property: | |||
Land | $ | 43,701 | |
Buildings, improvements and fixtures | 228,985 | ||
Construction in progress | 2,247 | ||
274,933 | |||
Accumulated depreciation | (66,599 | ) | |
Total rental property, net | 208,334 | ||
Cash and cash equivalents | 4,637 | ||
Deferred lease costs and other intangibles, net | 2,777 | ||
Prepaids and other assets | 15,206 | ||
Total assets | $ | 230,954 | |
Liabilities and Owners’ Equity | |||
Liabilities | |||
Mortgages payable, net | $ | 179,461 | |
Accounts payable and accruals | 7,814 | ||
Total liabilities | 187,275 | ||
Owners’ equity | 43,679 | ||
Total liabilities and owners’ equity | $ | 230,954 |
(1) | The carrying value of our investments in unconsolidated joint ventures as reported in our Consolidated Balance Sheet differs from our pro rata share of the net assets shown above due to adjustments to the book basis, including intercompany profits on sales of services that are capitalized by the unconsolidated joint ventures. The differences in basis totaled $3.7 million as of June 30, 2020 and are being amortized over the various useful lives of the related assets. |
Non-GAAP Pro Rata Portion | |||||||
Noncontrolling Interests | Unconsolidated Joint Ventures | ||||||
Revenues: | |||||||
Rental revenues | $ | — | $ | 19,122 | |||
Other revenues | — | 133 | |||||
Total revenues | — | 19,255 | |||||
Expense: | |||||||
Property operating | — | 7,994 | |||||
General and administrative | — | 131 | |||||
Depreciation and amortization | — | 6,035 | |||||
Impairment charge | — | 3,091 | |||||
Total expenses | — | 17,251 | |||||
Other income (expense): | |||||||
Interest expense | — | (3,484 | ) | ||||
Other income (expenses) | (190 | ) | 32 | ||||
Total other income (expense) | $ | (190 | ) | $ | (3,452 | ) | |
Net income (loss) | $ | (190 | ) | $ | (1,448 | ) |
Non-GAAP Pro Rata Portion | |||||||
Noncontrolling Interests | Unconsolidated Joint Ventures | ||||||
Rental revenues: | |||||||
Base rentals | $ | — | $ | 11,647 | |||
Percentage rentals | — | 503 | |||||
Tenant expense reimbursements | — | 7,514 | |||||
Lease termination fees | — | 93 | |||||
Market rent adjustments | — | (35 | ) | ||||
Straight-line rent adjustments | — | (32 | ) | ||||
Uncollectible tenant revenues | — | (568 | ) | ||||
Rental revenues | $ | — | $ | 19,122 |
Tanger Factory Outlet Centers, Inc. | |
Investor Relations | |
Phone: | (336) 834-6892 |
Fax: | (336) 297-0931 |
e-mail: | tangerir@tangeroutlet.com |
Mail: | Tanger Factory Outlet Centers, Inc. |
3200 Northline Avenue | |
Suite 360 | |
Greensboro, NC 27408 |