Published on April 27, 2010
Tanger Factory Outlet Centers, Inc.
Supplemental Operating and Financial Data
March 31, 2010
| 1 | Supplemental Operating and Financial Data for the Quarter Ended 3/31/10 |
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, 2009.
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 | Supplemental Operating and Financial Data for the Quarter Ended 3/31/10 |
Table of Contents
Section
| Portfolio Data: | |||||||||||||||||
| Geographic Diversification | 4 | ||||||||||||||||
| Property Summary Occupancy at End of Each Period Shown | 5 | ||||||||||||||||
| Portfolio Occupancy at the End of Each Period | 6 | ||||||||||||||||
| Major Tenants | 7 | ||||||||||||||||
| Lease Expirations as of March 31, 2010 | 8 | ||||||||||||||||
| Leasing Activity | 9 | ||||||||||||||||
| Financial Data: | |||||||||||||||||
| Consolidated Balance Sheets | 10 | ||||||||||||||||
| Consolidated Statements of Operations | 11 | ||||||||||||||||
| FFO and FAD Analysis | 12 | ||||||||||||||||
| Unconsolidated Joint Venture Information | 13 | ||||||||||||||||
| Debt Outstanding Summary | 16 | ||||||||||||||||
| Future Scheduled Principal Payments | 17 | ||||||||||||||||
| Senior Unsecured Notes Financial Covenants | 17 | ||||||||||||||||
| Investor Information | 18 | ||||||||||||||||
| 3 | Supplemental Operating and Financial Data for the Quarter Ended 3/31/10 |
Geographic Diversification
| As of March 31, 2010 | |||||||||||
| State | # of Centers | GLA | % of GLA | ||||||||
| South Carolina | 4 | 1,387,784 | 15% | ||||||||
| Georgia | 3 | 850,130 | 9% | ||||||||
| New York | 1 | 729,475 | 8% | ||||||||
| Pennsylvania | 2 | 628,124 | 7% | ||||||||
| Texas | 2 | 619,729 | 7% | ||||||||
| Delaware | 1 | 568,868 | 6% | ||||||||
| Alabama | 1 | 557,235 | 6% | ||||||||
| Michigan | 2 | 436,751 | 5% | ||||||||
| Tennessee | 1 | 419,038 | 5% | ||||||||
| Missouri | 1 | 302,992 | 4% | ||||||||
| Utah | 1 | 298,379 | 3% | ||||||||
| Connecticut | 1 | 291,051 | 3% | ||||||||
| Louisiana | 1 | 282,403 | 3% | ||||||||
| Iowa | 1 | 277,230 | 3% | ||||||||
| Oregon | 1 | 270,280 | 3% | ||||||||
| Illinois | 1 | 250,439 | 3% | ||||||||
| New Hampshire | 1 | 245,698 | 3% | ||||||||
| Florida | 1 | 198,950 | 2% | ||||||||
| North Carolina | 2 | 186,413 | 2% | ||||||||
| California | 1 | 171,300 | 2% | ||||||||
| Maine | 2 | 84,313 | 1% | ||||||||
| Total (1) | 31 | 9,056,582 | 100% | ||||||||
(1) Excludes one 265,061 square foot center in Wisconsin Dells, WI,
of which Tanger owns a 50% interest through a joint venture
arrangement. Also, excludes one 653,780 square foot shopping center
and one 29,253 square foot warehouse in Deer Park, NY of which Tanger
owns a 33.3% interest through a joint venture arrangement.
| 4 | Supplemental Operating and Financial Data for the Quarter Ended 3/31/10 |
Property Summary Occupancy at End of Each Period Shown
Wholly-owned properties
| Location |
Total GLA 3/31/10 |
% Occupied 3/31/10 |
% Occupied 12/31/09 |
% Occupied 9/30/09 |
% Occupied 6/30/09 |
% Occupied 3/31/09 |
||||||||||||||
| Riverhead, NY | 729,475 | 99 | % | 99 | % | 99 | % | 98 | % | 97 | % | |||||||||
| Rehoboth, DE | 568,868 | 99 | % | 99 | % | 99 | % | 99 | % | 97 | % | |||||||||
| Foley, AL | 557,235 | 92 | % | 91 | % | 91 | % | 91 | % | 91 | % | |||||||||
| San Marcos, TX | 441,929 | 97 | % | 100 | % | 100 | % | 99 | % | 97 | % | |||||||||
| Myrtle Beach Hwy 501, SC | 426,417 | 88 | % | 90 | % | 90 | % | 88 | % | 86 | % | |||||||||
| Sevierville, TN | 419,038 | 99 | % | 100 | % | 100 | % | 100 | % | 98 | % | |||||||||
| Myrtle Beach Hwy 17, SC | 402,466 | 99 | % | 100 | % | 100 | % | 99 | % | 97 | % | |||||||||
| Washington, PA | 372,972 | 94 | % | 88 | % | 88 | % | 86 | % | 82 | % | |||||||||
| Commerce II, GA | 370,512 | 96 | % | 97 | % | 96 | % | 95 | % | 93 | % | |||||||||
| Charleston, SC | 352,315 | 92 | % | 98 | % | 96 | % | 95 | % | 91 | % | |||||||||
| Howell, MI | 324,631 | 94 | % | 95 | % | 95 | % | 94 | % | 94 | % | |||||||||
| Branson, MO | 302,992 | 97 | % | 100 | % | 100 | % | 100 | % | 98 | % | |||||||||
| Park City, UT | 298,379 | 100 | % | 100 | % | 100 | % | 99 | % | 99 | % | |||||||||
| Locust Grove, GA | 293,868 | 97 | % | 100 | % | 100 | % | 97 | % | 95 | % | |||||||||
| Westbrook, CT | 291,051 | 97 | % | 95 | % | 97 | % | 91 | % | 94 | % | |||||||||
| Gonzales, LA | 282,403 | 98 | % | 100 | % | 99 | % | 100 | % | 99 | % | |||||||||
| Williamsburg, IA | 277,230 | 91 | % | 95 | % | 94 | % | 96 | % | 91 | % | |||||||||
| Lincoln City, OR | 270,280 | 98 | % | 99 | % | 100 | % | 99 | % | 94 | % | |||||||||
| Lancaster, PA | 255,152 | 97 | % | 100 | % | 99 | % | 97 | % | 97 | % | |||||||||
| Tuscola, IL | 250,439 | 82 | % | 82 | % | 81 | % | 79 | % | 78 | % | |||||||||
| Tilton, NH | 245,698 | 100 | % | 100 | % | 99 | % | 97 | % | 96 | % | |||||||||
| Hilton Head, SC | 206,586 | 100 | % | 89 | % | 90 | % | 85 | % | 85 | % | |||||||||
| Fort Myers, FL | 198,950 | 90 | % | 92 | % | 89 | % | 92 | % | 95 | % | |||||||||
| Commerce I, GA | 185,750 | 44 | % | 61 | % | 58 | % | 63 | % | 58 | % | |||||||||
| Terrell, TX | 177,800 | 93 | % | 98 | % | 94 | % | 94 | % | 94 | % | |||||||||
| Barstow, CA | 171,300 | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||
| West Branch, MI | 112,120 | 98 | % | 96 | % | 96 | % | 96 | % | 96 | % | |||||||||
| Blowing Rock, NC | 104,235 | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||
| Nags Head, NC | 82,178 | 94 | % | 97 | % | 97 | % | 97 | % | 97 | % | |||||||||
| Kittery I, ME | 59,694 | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||
| Kittery II, ME | 24,619 | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||
| Total | 9,056,582 | 95 | % | 96% (1 | ) | 96% (1 | ) | 95% (1 | ) | 94% (1 | ) | |||||||||
Unconsolidated joint ventures
| Deer Park, NY (2) | 683,033 | 81 | % | 81 | % | 80 | % | 80 | % | 78 | % | |||||||||
| Wisconsin Dells, WI | 265,061 | 97 | % | 97 | % | 98 | % | 98 | % | 97 | % | |||||||||
(1) Excludes the occupancy rate at our Washington, Pennsylvania
center which opened during the third quarter of 2008 and had not yet
stabilized.
(2) Includes a 29,253 square foot warehouse adjacent to the shopping center.
| 5 | Supplemental Operating and Financial Data for the Quarter Ended 3/31/10 |
Portfolio Occupancy at the End of Each Period (1)
(1) Excludes one 265,061 square foot center in Wisconsin Dells, WI,
of which Tanger owns a 50% interest through a joint venture
arrangement. Also, excludes one 653,780 square foot shopping center
and one 29,253 square foot warehouse in Deer Park, NY of which Tanger
owns a 33.3% interest through a joint venture arrangement.
(2) Excludes the occupancy rate at our Myrtle Beach Hwy 17, South
Carolina center which was owned by an unconsolidated joint venture
during those periods. On January 5, 2009, we acquired the remaining
50% interest in the joint venture and the property became
wholly-owned.
(3) Excludes the occupancy rate at our Washington, Pennsylvania
center which opened during the third quarter of 2008 and had not yet
stabilized.
| 6 | Supplemental Operating and Financial Data for the Quarter Ended 3/31/10 |
Major Tenants (1)
| Ten Largest Tenants As of March 31, 2010 | |||||||||||
| Tenant |
# of Stores |
GLA |
% of Total GLA |
||||||||
| The Gap, Inc. | 72 | 761,530 | 8.4 | % | |||||||
| Phillips-Van Heusen | 87 | 418,898 | 4.6 | % | |||||||
| Dress Barn, Inc. | 57 | 344,120 | 3.8 | % | |||||||
| Nike | 26 | 310,437 | 3.4 | % | |||||||
| VF Outlet, Inc. | 31 | 300,457 | 3.3 | % | |||||||
| Adidas | 33 | 281,374 | 3.1 | % | |||||||
| Liz Claiborne | 33 | 270,439 | 3.0 | % | |||||||
| Carter's | 48 | 233,513 | 2.6 | % | |||||||
| Polo Ralph Lauren | 23 | 197,669 | 2.2 | % | |||||||
| Jones Retail Corporation | 67 | 186,325 | 2.1 | % | |||||||
| Total of All Listed Above | 477 | 3,304,762 | 36.5 | % | |||||||
(1) Excludes one 265,061 square foot center in Wisconsin Dells, WI,
of which Tanger owns a 50% interest through a joint venture
arrangement. Also, excludes one 653,780 square foot shopping center
and one 29,253 square foot warehouse in Deer Park, NY of which Tanger
owns a 33.3% interest through a joint venture arrangement.
| 7 | Supplemental Operating and Financial Data for the Quarter Ended 3/31/10 |
Lease Expirations as of March 31, 2010
Percentage of Total Gross Leasable Area (1)
Percentage of Total Annualized Base Rent (1)
(1) Excludes one 265,061 square foot center in Wisconsin Dells, WI,
of which Tanger owns a 50% interest through a joint venture
arrangement. Also, excludes one 653,780 square foot shopping center
and one 29,253 square foot warehouse in Deer Park, NY of which Tanger
owns a 33.3% interest through a joint venture arrangement.
| 8 | Supplemental Operating and Financial Data for the Quarter Ended 3/31/10 |
Leasing Activity (1)
| 03/31/10 |
06/30/10 |
09/30/10 |
12/31/10 |
Year to Date |
Prior Year to Date |
|||||||||||||||
| Re-tenanted Space: | ||||||||||||||||||||
| Number of leases | 60 | 60 | 48 | |||||||||||||||||
| Gross leasable area | 227,468 | 227,468 | 179,661 | |||||||||||||||||
| New initial base rent per square foot | $ | 21.25 | $ | 21.25 | $ | 25.04 | ||||||||||||||
| Prior expiring base rent per square foot | $ | 19.07 | $ | 19.07 | $ | 18.95 | ||||||||||||||
| Percent increase | 11.4 | % | 11.4 | % | 32.1 | % | ||||||||||||||
| New straight line base rent per square foot | $ | 22.92 | $ | 22.92 | $ | 26.38 | ||||||||||||||
| Prior straight line base rent per square foot | $ | 18.71 | $ | 18.71 | $ | 18.51 | ||||||||||||||
| Percent increase | 22.5 | % | 22.5 | % | 42.5 | % | ||||||||||||||
| Renewed Space: | ||||||||||||||||||||
| Number of leases | 150 | 150 | 162 | |||||||||||||||||
| Gross leasable area | 646,422 | 646,422 | 806,051 | |||||||||||||||||
| New initial base rent per square foot | $ | 19.80 | $ | 19.80 | $ | 18.05 | ||||||||||||||
| Prior expiring base rent per square foot | $ | 18.86 | $ | 18.86 | $ | 16.20 | ||||||||||||||
| Percent increase | 4.9 | % | 4.9 | % | 11.4 | % | ||||||||||||||
| New straight line base rent per square foot | $ | 20.37 | $ | 20.37 | $ | 18.42 | ||||||||||||||
| Prior straight line base rent per square foot | $ | 18.72 | $ | 18.72 | $ | 16.08 | ||||||||||||||
| Percent increase | 8.8 | % | 8.8 | % | 14.5 | % | ||||||||||||||
| Total Re-tenanted and Renewed Space: | ||||||||||||||||||||
| Number of leases | 210 | 210 | 210 | |||||||||||||||||
| Gross leasable area | 873,890 | 873,890 | 985,712 | |||||||||||||||||
| New initial base rent per square foot | $ | 20.17 | $ | 20.17 | $ | 19.32 | ||||||||||||||
| Prior expiring base rent per square foot | $ | 18.92 | $ | 18.92 | $ | 16.70 | ||||||||||||||
| Percent increase | 6.6 | % | 6.6 | % | 15.7 | % | ||||||||||||||
| New straight line base rent per square foot | $ | 21.04 | $ | 21.04 | $ | 19.87 | ||||||||||||||
| Prior straight line base rent per square foot | $ | 18.72 | $ | 18.72 | $ | 16.52 | ||||||||||||||
| Percent increase | 12.4 | % | 12.4 | % | 20.3 | % |
(1) Excludes one 265,061 square foot center in Wisconsin Dells, WI,
of which Tanger owns a 50% interest through a joint venture
arrangement. Also, excludes one 653,780 square foot shopping center
and one 29,253 square foot warehouse in Deer Park, NY of which Tanger
owns a 33.3% interest through a joint venture arrangement.
| 9 | Supplemental Operating and Financial Data for the Quarter Ended 3/31/10 |
Consolidated Balance Sheets (dollars in thousands)
| 3/31/10 | 12/31/09 | 9/30/09 | 6/30/09 | 3/31/09 | |||||||||||||
| Assets | |||||||||||||||||
| Rental property | |||||||||||||||||
| Land | $ | 142,822 | $ | 143,933 | $ | 135,605 | $ | 135,708 | $ | 135,710 | |||||||
| Buildings | 1,360,010 | 1,352,568 | 1,349,310 | 1,343,854 | 1,348,211 | ||||||||||||
| Construction in progress | 19,557 | 11,369 | --- | --- | 4,805 | ||||||||||||
| Total rental property | 1,522,389 | 1,507,870 | 1,484,915 | 1,479,562 | 1,488,726 | ||||||||||||
| Accumulated depreciation | (432,276 | ) | (412,530 | ) | (396,508 | ) | (379,412 | ) | (374,541 | ) | |||||||
| Total rental property net | 1,090,113 | 1,095,340 | 1,088,407 | 1,100,150 | 1,114,185 | ||||||||||||
| Cash & cash equivalents | 3,197 | 3,267 | 4,401 | 5,150 | 3,101 | ||||||||||||
| Investments in unconsolidated joint ventures | 8,151 | 9,054 | 9,569 | 9,808 | 9,773 | ||||||||||||
| Deferred charges net | 35,555 | 38,867 | 41,572 | 43,746 | 48,294 | ||||||||||||
| Other assets | 31,889 | 32,333 | 32,646 | 31,771 | 34,010 | ||||||||||||
| Total assets | $ | 1,168,905 | $ | 1,178,861 | $ | 1,176,595 | $ | 1,190,625 | $ | 1,209,363 | |||||||
| Liabilities & equity | |||||||||||||||||
| Liabilities | |||||||||||||||||
| Debt | |||||||||||||||||
| Senior, unsecured notes, net of discount | $ | 256,412 | $ | 256,352 | $ | 256,293 | $ | 256,235 | $ | 391,133 | |||||||
| Unsecured term loan | 235,000 | 235,000 | 235,000 | 235,000 | 235,000 | ||||||||||||
| Mortgages payable, net of discount | --- | 35,559 | 35,246 | 34,938 | 34,634 | ||||||||||||
| Unsecured lines of credit | 93,400 | 57,700 | 54,000 | 188,250 | 188,400 | ||||||||||||
| Total debt | 584,812 | 584,611 | 580,539 | 714,423 | 849,167 | ||||||||||||
| Construction trade payables | 22,381 | 14,194 | 7,957 | 6,327 | 9,070 | ||||||||||||
| Accounts payable & accruals | 28,544 | 31,916 | 34,235 | 25,103 | 27,777 | ||||||||||||
| Other liabilities | 25,657 | 27,077 | 28,864 | 32,152 | 33,868 | ||||||||||||
| Total liabilities | 661,394 | 657,798 | 651,595 | 778,005 | 919,882 | ||||||||||||
| Equity | |||||||||||||||||
| Tanger Factory Outlet Centers, Inc. equity | |||||||||||||||||
| Preferred shares | 75,000 | 75,000 | 75,000 | 75,000 | 75,000 | ||||||||||||
| Common shares | 405 | 403 | 403 | 368 | 319 | ||||||||||||
| Paid in capital | 597,968 | 596,074 | 595,240 | 482,532 | 372,762 | ||||||||||||
| Distributions in excess of net income | (217,076 | ) | (202,997 | ) | (197,725 | ) | (186,202 | ) | (184,349 | ) | |||||||
| Accum. other comprehensive loss | (5,169 | ) | (5,809 | ) | (6,824 | ) | (6,879 | ) | (8,533 | ) | |||||||
| Total Tanger Factory Outlet Centers, Inc. equity | 451,128 | 462,671 | 466,094 | 364,819 | 255,199 | ||||||||||||
| Noncontrolling interest | 56,383 | 58,392 | 58,906 | 47,801 | 34,282 | ||||||||||||
| Total equity | 507,511 | 521,063 | 525,000 | 412,620 | 289,481 | ||||||||||||
| Total liabilities and equity | $ | 1,168,905 | $ | 1,178,861 | $ | 1,176,595 | $ | 1,190,625 | $ | 1,209,363 | |||||||
| 10 | Supplemental Operating and Financial Data for the Quarter Ended 3/31/10 |
Consolidated Statements of Operations (dollars and shares in thousands)
| Three Months Ended | YTD | ||||||||||||||||||||||
| 03/10 | 12/09 | 09/09 | 06/09 | 03/09 | 03/10 | 03/09 | |||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Base rentals | $ | 43,648 | $ | 44,405 | $ | 44,160 | $ | 43,425 | $ | 42,927 | $ | 43,648 | $ | 42,927 | |||||||||
| Percentage rentals | 1,305 | 3,111 | 1,442 | 940 | 1,308 | 1,305 | 1,308 | ||||||||||||||||
| Expense reimbursements | 19,536 | 22,027 | 19,069 | 18,374 | 19,219 | 19,536 | 19,219 | ||||||||||||||||
| Other income | 1,730 | 2,000 | 5,646 | 1,928 | 1,704 | 1,730 | 1,704 | ||||||||||||||||
| Total revenues | 66,219 | 71,543 | 70,317 | 64,667 | 65,158 | 66,219 | 65,158 | ||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Property operating | 22,472 | 23,982 | 21,353 | 20,794 | 21,748 | 22,472 | 21,748 | ||||||||||||||||
| General & administrative | 5,466 | 5,066 | 5,467 | 5,820 | 5,935 | 5,466 | 5,935 | ||||||||||||||||
| Executive severance | --- | --- | 10,296 | --- | --- | --- | --- | ||||||||||||||||
| Depreciation & amortization | 26,527 | 20,239 | 20,213 | 19,652 | 20,397 | 26,527 | 20,397 | ||||||||||||||||
| Impairment charge | 735 | --- | --- | 5,200 | --- | 735 | --- | ||||||||||||||||
| Abandoned due diligence costs | --- | 797 | --- | --- | --- | --- | --- | ||||||||||||||||
| Total expenses | 55,200 | 50,084 | 57,329 | 51,466 | 48,080 | 55,200 | 48,080 | ||||||||||||||||
| Operating income | 11,019 | 21,459 | 12,988 | 13,201 | 17,078 | 11,019 | 17,078 | ||||||||||||||||
| Interest expense | (7,948 | ) | (8,217 | ) | (8,692 | ) | (9,564 | ) | (11,210 | ) | (7,948 | ) | (11,210 | ) | |||||||||
| Gain on early extinguishment of debt | --- | --- | --- | 10,467 | --- | --- | --- | ||||||||||||||||
| Gain on fair value measurement of previously held interest in acquired joint venture | --- | --- | --- | --- | 31,497 | --- | 31,497 | ||||||||||||||||
| Income before equity in earnings (losses) of unconsolidated joint ventures | 3,071 | 13,242 | 4,296 | 14,104 | 37,365 | 3,071 | 37,365 | ||||||||||||||||
| Equity in earnings (losses) of unconsolidated joint ventures | (68 | ) | (166 | ) | 68 | (517 | ) | (897 | ) | (68 | ) | (897 | ) | ||||||||||
| Net income | 3,003 | 13,076 | 4,364 | 13,587 | 36,468 | 3,003 | 36,468 | ||||||||||||||||
| Noncontrolling interest | (210 | ) | (1,538 | ) | (407 | ) | (1,833 | ) | (5,698 | ) | (210 | ) | (5,698 | ) | |||||||||
| Net income attributable to the Company | 2,793 | 11,538 | 3,957 | 11,754 | 30,770 | 2,793 | 30,770 | ||||||||||||||||
| Less applicable preferred share dividends | (1,406 | ) | (1,406 | ) | (1,406 | ) | (1,407 | ) | (1,406 | ) | (1,406 | ) | (1,406 | ) | |||||||||
| Allocation of earnings to participating securities | (169 | ) | (121 | ) | (207 | ) | (179 | ) | (437 | ) | (169 | ) | (437 | ) | |||||||||
| Net income available to common shareholders | $ | 1,218 | $ | 10,011 | $ | 2,344 | $ | 10,168 | $ | 28,927 | $ | 1,218 | $ | 28,927 | |||||||||
| Basic earnings per common share: | |||||||||||||||||||||||
| Income from continuing operations | $ | .03 | $ | .25 | $ | .06 | $ | .30 | $ | .93 | $ | .03 | $ | .93 | |||||||||
| Net income | $ | .03 | $ | .25 | $ | .06 | $ | .30 | $ | .93 | $ | .03 | $ | .93 | |||||||||
| Diluted earnings per common share: | |||||||||||||||||||||||
| Income from continuing operations | $ | .03 | $ | .25 | $ | .06 | $ | .30 | $ | .92 | $ | .03 | $ | .92 | |||||||||
| Net income | $ | .03 | $ | .25 | $ | .06 | $ | .30 | $ | .92 | $ | .03 | $ | .92 | |||||||||
| Weighted average common shares: | |||||||||||||||||||||||
| Basic | 40,030 | 39,958 | 38,063 | 34,249 | 31,269 | 40,030 | 31,269 | ||||||||||||||||
| Diluted | 40,117 | 40,043 | 38,145 | 34,327 | 31,350 | 40,117 | 31,350 | ||||||||||||||||
| 11 | Supplemental Operating and Financial Data for the Quarter Ended 3/31/10 |
FFO and FAD Analysis (dollars and shares in thousands)
| Three Months Ended | YTD | ||||||||||||||||||||||
| 03/10 | 12/09 | 09/09 | 06/09 | 03/09 | 03/10 | 03/09 | |||||||||||||||||
| Funds from operations: | |||||||||||||||||||||||
| Net income | $ | 3,003 | $ | 13,076 | $ | 4,364 | $ | 13,587 | $ | 36,468 | $ | 3,003 | $ | 36,468 | |||||||||
| Adjusted for - | |||||||||||||||||||||||
| Depreciation and amortization uniquely significant to real estate wholly-owned | 26,412 | 20,112 | 20,088 | 19,530 | 20,278 | 26,412 | 20,278 | ||||||||||||||||
| Depreciation and amortization uniquely significant to real estate joint ventures | 1,265 | 1,231 | 1,239 | 1,223 | 1,166 | 1,265 | 1,166 | ||||||||||||||||
| (Gain) on fair value measurement of previously held interest in acquired joint venture | -- | -- | -- | -- | (31,497 | ) | -- | (31,497 | ) | ||||||||||||||
| Funds from operations | 30,680 | 34,419 | 25,691 | 34,340 | 26,415 | 30,680 | 26,415 | ||||||||||||||||
| Preferred share dividends | (1,406 | ) | (1,406 | ) | (1,406 | ) | (1,407 | ) | (1,406 | ) | (1,406 | ) | (1,406 | ) | |||||||||
| Allocation of earnings to participating securities | (268 | ) | (225 | ) | (302 | ) | (452 | ) | (306 | ) | (268 | ) | (306 | ) | |||||||||
| Funds from operations available to common shareholders | $ | 29,006 | $ | 32,788 | $ | 23,983 | $ | 32,481 | $ | 24,703 | $ | 29,006 | $ | 24,703 | |||||||||
| Funds from operations per share | $ | .63 | $ | .71 | $ | .54 | $ | .80 | $ | .66 | $ | .63 | $ | .66 | |||||||||
| Funds available for distribution to common shareholders: | |||||||||||||||||||||||
| Funds from operations | $ | 29,006 | $ | 32,788 | $ | 23,983 | $ | 32,481 | $ | 24,703 | $ | 29,006 | $ | 24,703 | |||||||||
| Adjusted for - | |||||||||||||||||||||||
| Corporate depreciation excluded above | 115 | 127 | 125 | 122 | 119 | 115 | 119 | ||||||||||||||||
| Amortization of finance costs | 342 | 341 | 348 | 357 | 465 | 342 | 465 | ||||||||||||||||
| Amortization of net debt (discount) premium | 214 | (79 | ) | (21 | ) | (76 | ) | 1,070 | 214 | 1,070 | |||||||||||||
| Gain on early extinguishment of debt | -- | -- | -- | (10,467 | ) | -- | -- | -- | |||||||||||||||
| Impairment charge | 735 | -- | -- | 5,200 | -- | 735 | -- | ||||||||||||||||
| Amortization of share based compensation | 1,140 | 829 | 8,080 | 1,592 | 1,297 | 1,140 | 1,297 | ||||||||||||||||
| Straight line rent adjustment | (734 | ) | (287 | ) | (421 | ) | (757 | ) | (777 | ) | (734 | ) | (777 | ) | |||||||||
| Market rent adjustment | (165 | ) | (226 | ) | (223 | ) | (121 | ) | 78 | (165 | ) | 78 | |||||||||||
| 2nd generation tenant allowances | (1,721 | ) | (1,652 | ) | (807 | ) | (2,834 | ) | (2,371 | ) | (1,721 | ) | (2,371 | ) | |||||||||
| Capital improvements | (1,600 | ) | (1,011 | ) | (2,008 | ) | (3,107 | ) | (2,761 | ) | (1,600 | ) | (2,761 | ) | |||||||||
| Funds available for distribution | $ | 27,332 | $ | 30,830 | $ | 29,056 | $ | 22,390 | $ | 21,823 | $ | 27,332 | $ | 21,823 | |||||||||
| Funds available for distribution per share | $ | .59 | $ | .67 | $ | .66 | $ | .55 | $ | .58 | $ | .59 | $ | .58 | |||||||||
| Dividends paid per share | $ | .3825 | $ | .3825 | $ | .3825 | $ | .3825 | $ | .38 | $ | .3825 | $ | .38 | |||||||||
| FFO payout ratio | 61 | % | 54 | % | 71 | % | 48 | % | 58 | % | 61 | % | 58 | % | |||||||||
| FAD payout ratio | 65 | % | 57 | % | 58 | % | 70 | % | 66 | % | 65 | % | 66 | % | |||||||||
| Diluted weighted average common shares | 46,184 | 46,110 | 44,212 | 40,394 | 37,417 | 46,184 | 37,417 | ||||||||||||||||
| 12 | Supplemental Operating and Financial Data for the Quarter Ended 3/31/10 |
Unconsolidated Joint Venture Information All
Summary Balance Sheets (dollars in thousands)
| 03/31/10 |
12/31/09 |
09/30/09 |
06/30/09 |
03/31/09 |
Tanger's Share as of 03/31/10 |
||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Investment properties at cost net | $ | 292,105 | $ | 294,857 | $ | 294,220 | $ | 291,166 | $ | 288,951 | $ | 102,651 | |||||||||||
| Cash and cash equivalents | 6,937 | 8,070 | 8,151 | 5,880 | 13,195 | 2,991 | |||||||||||||||||
| Deferred charges net | 5,197 | 5,450 | 5,438 | 5,685 | 6,307 | 1,819 | |||||||||||||||||
| Other assets | 5,878 | 5,610 | 5,302 | 4,549 | 4,399 | 2,064 | |||||||||||||||||
| Total assets | $ | 310,117 | $ | 313,987 | $ | 313,111 | $ | 307,280 | $ | 312,852 | $ | 109,525 | |||||||||||
| Liabilities & Owners' Equity | |||||||||||||||||||||||
| Mortgage payable | $ | 292,468 | $ | 292,468 | $ | 292,468 | $ | 288,169 | $ | 288,169 | $ | 101,698 | |||||||||||
| Construction trade payables | 1,845 | 3,647 | 2,523 | 1,651 | 3,356 | 625 | |||||||||||||||||
| Accounts payable & other liabilities | 3,568 | 3,826 | 2,841 | 1,825 | 6,998 | 1,341 | |||||||||||||||||
| Total liabilities | 297,881 | 299,941 | 297,832 | 291,645 | 298,523 | 103,664 | |||||||||||||||||
| Owners' equity | 12,236 | 14,046 | 15,279 | 15,635 | 14,329 | 5,861 | |||||||||||||||||
| Total liabilities & owners' equity | $ | 310,117 | $ | 313,987 | $ | 313,111 | $ | 307,280 | $ | 312,852 | $ | 109,525 | |||||||||||
Summary Statements of Operations (dollars in thousands)
| Three Months Ended | YTD | ||||||||||||||||||||||
| 03/10 | 12/09 | 09/09 | 06/09 | 03/09 | 03/10 | 03/09 | |||||||||||||||||
| Revenues | $ | 9,274 | $ | 9,374 | $ | 9,152 | $ | 8,431 | $ | 8,524 | $ | 9,274 | $ | 8,524 | |||||||||
| Expenses | |||||||||||||||||||||||
| Property operating | 4,210 | 4,682 | 4,103 | 3,611 | 4,247 | 4,210 | 4,247 | ||||||||||||||||
| General & administrative | 287 | 444 | 111 | 117 | 189 | 287 | 189 | ||||||||||||||||
| Depreciation & amortization | 3,503 | 3,460 | 3,427 | 3,358 | 3,174 | 3,503 | 3,174 | ||||||||||||||||
| Total expenses | 8,000 | 8,586 | 7,641 | 7,086 | 7,610 | 8,000 | 7,610 | ||||||||||||||||
| Operating income | 1,274 | 788 | 1,511 | 1,345 | 914 | 1,274 | 914 | ||||||||||||||||
| Interest expense | 1,674 | 1,550 | 1,553 | 3,079 | 3,731 | 1,674 | 3,731 | ||||||||||||||||
| Net income (loss) | $ | (400 | ) | $ | (762 | ) | $ | (42 | ) | $ | (1,734 | ) | $ | (2,817 | ) | $ | (400 | ) | $ | (2,817 | ) | ||
| Tanger's share of: | |||||||||||||||||||||||
| Total revenues less property operating and general & administrative expenses ("NOI") | $ | 1,791 | $ | 1,603 | $ | 1,845 | $ | 1,751 | $ | 1,534 | $ | 1,791 | $ | 1,534 | |||||||||
| Net income | $ | (68 | ) | $ | (166 | ) | $ | 68 | $ | (517 | ) | $ | (897 | ) | $ | (68 | ) | $ | (897 | ) | |||
| Depreciation (real estate related) | $ | 1,265 | $ | 1,231 | $ | 1,239 | $ | 1,223 | $ | 1,166 | $ | 1,265 | $ | 1,166 | |||||||||
| 13 | Supplemental Operating and Financial Data for the Quarter Ended 3/31/10 |
Unconsolidated Joint Venture Information Wisconsin Dells
Summary Balance Sheets (dollars in thousands)
| 03/31/10 |
12/31/09 |
09/30/09 |
06/30/09 |
03/31/09 |
Tanger's Share as of 03/31/10 |
||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Investment properties at cost net | $ | 31,541 | $ | 32,108 | $ | 32,598 | $ | 33,165 | $ | 33,718 | $ | 15,771 | |||||||||||
| Cash and cash equivalents | 4,050 | 4,549 | 3,846 | 3,312 | 2,436 | 2,025 | |||||||||||||||||
| Deferred charges net | 515 | 529 | 390 | 444 | 493 | 258 | |||||||||||||||||
| Other assets | 626 | 514 | 522 | 527 | 589 | 313 | |||||||||||||||||
| Total assets | $ | 36,732 | $ | 37,700 | $ | 37,356 | $ | 37,448 | $ | 37,236 | $ | 18,367 | |||||||||||
| Liabilities & Owners' Equity | |||||||||||||||||||||||
| Mortgage payable | $ | 25,250 | $ | 25,250 | $ | 25,250 | $ | 25,250 | $ | 25,250 | $ | 12,625 | |||||||||||
| Construction trade payables | 58 | 116 | 39 | 199 | 199 | 29 | |||||||||||||||||
| Accounts payable & other liabilities | 906 | 876 | 696 | 787 | 654 | 454 | |||||||||||||||||
| Total liabilities | 26,214 | 26,242 | 25,985 | 26,236 | 26,103 | 13,108 | |||||||||||||||||
| Owners' equity | 10,518 | 11,458 | 11,371 | 11,212 | 11,133 | 5,259 | |||||||||||||||||
| Total liabilities & owners' equity | $ | 36,732 | $ | 37,700 | $ | 37,356 | $ | 37,448 | $ | 37,236 | $ | 18,367 | |||||||||||
Summary Statements of Operations (dollars in thousands)
| Three Months Ended | YTD | ||||||||||||||||||||||
| 03/10 | 12/09 | 09/09 | 06/09 | 03/09 | 03/10 | 03/09 | |||||||||||||||||
| Revenues | $ | 1,923 | $ | 1,757 | $ | 1,780 | $ | 1,785 | $ | 1,771 | $ | 1,923 | $ | 1,771 | |||||||||
| Expenses | |||||||||||||||||||||||
| Property operating | 716 | 629 | 590 | 661 | 685 | 716 | 685 | ||||||||||||||||
| General & administrative | 9 | 1 | 4 | 13 | 3 | 9 | 3 | ||||||||||||||||
| Depreciation & amortization | 613 | 612 | 615 | 613 | 613 | 613 | 613 | ||||||||||||||||
| Total expenses | 1,338 | 1,242 | 1,209 | 1,287 | 1,301 | 1,338 | 1,301 | ||||||||||||||||
| Operating income | 585 | 515 | 571 | 498 | 470 | 585 | 470 | ||||||||||||||||
| Interest expense | 225 | 128 | 112 | 118 | 134 | 225 | 134 | ||||||||||||||||
| Net income | $ | 360 | $ | 387 | $ | 459 | $ | 380 | $ | 336 | $ | 360 | $ | 336 | |||||||||
| Tanger's share of: | |||||||||||||||||||||||
| Total revenues less property operating and general & administrative expenses ("NOI") | $ | 599 | $ | 563 | $ | 593 | $ | 556 | $ | 541 | $ | 599 | $ | 541 | |||||||||
| Net income | $ | 188 | $ | 203 | $ | 238 | $ | 201 | $ | 177 | $ | 188 | $ | 177 | |||||||||
| Depreciation (real estate related) | $ | 298 | $ | 296 | $ | 299 | $ | 296 | $ | 297 | $ | 298 | $ | 297 | |||||||||
| 14 | Supplemental Operating and Financial Data for the Quarter Ended 3/31/10 |
Unconsolidated Joint Venture Information Deer Park
Summary Balance Sheets (dollars in thousands)
| 03/31/10 |
12/31/09 |
09/30/09 |
06/30/09 |
03/31/09 |
Tanger's Share as of 03/31/10 | ||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Investment properties at cost net | $ | 260,413 | $ | 262,601 | $ | 261,474 | $ | 257,868 | $ | 255,174 | $ | 86,804 | |||||||||||
| Cash and cash equivalents | 2,865 | 3,498 | 4,273 | 2,526 | 10,645 | 955 | |||||||||||||||||
| Deferred charges net | 4,682 | 4,921 | 5,048 | 5,241 | 5,814 | 1,561 | |||||||||||||||||
| Other assets | 5,252 | 5,096 | 4,780 | 4,022 | 3,810 | 1,751 | |||||||||||||||||
| Total assets | $ | 273,212 | $ | 276,116 | $ | 275,575 | $ | 269,657 | $ | 275,443 | $ | 91,071 | |||||||||||
| Liabilities & Owners' Equity | |||||||||||||||||||||||
| Mortgage payable | $ | 267,218 | $ | 267,218 | $ | 267,218 | $ | 262,919 | $ | 262,919 | $ | 89,073 | |||||||||||
| Construction trade payables | 1,785 | 3,531 | 2,484 | 1,452 | 3,157 | 595 | |||||||||||||||||
| Accounts payable & other liabilities | 2,662 | 2,950 | 2,136 | 1,034 | 6,344 | 887 | |||||||||||||||||
| Total liabilities | 271,665 | 273,699 | 271,838 | 265,405 | 272,420 | 90,555 | |||||||||||||||||
| Owners' equity | 1,547 | 2,417 | 3,737 | 4,252 | 3,023 | 516 | |||||||||||||||||
| Total liabilities & owners' equity | $ | 273,212 | $ | 276,116 | $ | 275,575 | $ | 269,657 | $ | 275,443 | $ | 91,071 | |||||||||||
Summary Statements of Operations (dollars in thousands)
| Three Months Ended | YTD | ||||||||||||||||||||||
| 03/10 | 12/09 | 09/09 | 06/09 | 03/09 | 03/10 | 03/09 | |||||||||||||||||
| Revenues | $ | 7,351 | $ | 7,617 | $ | 7,372 | $ | 6,646 | $ | 6,753 | $ | 7,351 | $ | 6,753 | |||||||||
| Expenses | |||||||||||||||||||||||
| Property operating | 3,494 | 4,053 | 3,513 | 2,950 | 3,562 | 3,494 | 3,562 | ||||||||||||||||
| General & administrative | 278 | 443 | 107 | 104 | 186 | 278 | 186 | ||||||||||||||||
| Depreciation & amortization | 2,884 | 2,868 | 2,807 | 2,727 | 2,539 | 2,884 | 2,539 | ||||||||||||||||
| Total expenses | 6,656 | 7,364 | 6,427 | 5,781 | 6,287 | 6,656 | 6,287 | ||||||||||||||||
| Operating income | 695 | 253 | 945 | 865 | 466 | 695 | 466 | ||||||||||||||||
| Interest expense | 1,449 | 1,422 | 1,441 | 2,961 | 3,597 | 1,449 | 3,597 | ||||||||||||||||
| Net income (loss) | $ | (754 | ) | $ | (1,169 | ) | $ | (496 | ) | $ | (2,096 | ) | $ | (3,131 | ) | $ | (754 | ) | $ | (3,131 | ) | ||
| Tanger's share of: | |||||||||||||||||||||||
| Total revenues less property operating and general & administrative expenses ("NOI") | $ | 1,192 | $ | 1,040 | $ | 1,252 | $ | 1,196 | $ | 1,002 | $ | 1,192 | $ | 1,002 | |||||||||
| Net income (loss) | $ | (258 | ) | $ | (370 | ) | $ | (169 | ) | $ | (718 | ) | $ | (1,065 | ) | $ | (258 | ) | $ | (1,065 | ) | ||
| Depreciation (real estate related) | $ | 967 | $ | 936 | $ | 941 | $ | 927 | $ | 869 | $ | 967 | $ | 869 | |||||||||
| 15 | Supplemental Operating and Financial Data for the Quarter Ended 3/31/10 |
Debt Outstanding Summary (dollars in thousands)
| As of March 31, 2010 | |||||||||||
| Principal Balance |
Interest Rate |
Maturity Date |
|||||||||
| Unsecured debt: | |||||||||||
| Unsecured term loan credit facility (1) | $ | 235,000 | Libor + 1.60% | 6/10/11 | |||||||
| Unsecured credit facilities (2) | 93,400 | Libor + 0.60 0.75% | 06/30/11 | ||||||||
| 2015 Senior unsecured notes | 250,000 | 6.15% | 11/15/15 | ||||||||
| 2026 Senior unsecured exchangeable notes (3) | 7,210 | 3.75% | 8/18/11 | ||||||||
| Net debt discounts | (798 | ) | |||||||||
| Total consolidated debt | $ | 584,812 | |||||||||
| Tanger's share of unconsolidated JV debt: | |||||||||||
| Wisconsin Dells (4) | 12,625 | Libor + 3.00% | 12/18/12 | ||||||||
| Deer Park (5) | 89,073 | Libor + 1.375 3.50% | 5/17/11 | ||||||||
| Total Tanger's share of unconsolidated JV debt | $ | 101,698 | |||||||||
(1) In July and September 2008, we entered into LIBOR based interest
rate swap agreements on notional amounts of $118.0 million and $117.0
million, respectively. The purpose of the swaps was to fix the
interest rate on a portion of the $235.0 million outstanding under
the term loan facility completed in June 2008. The swaps fixed the
one month LIBOR rate at 3.605 and 3.70%, respectively. When combined
with the current spread of 160 basis points on the term loan
facility, which can vary based on our credit rating, these swap
agreements fix our interest rate on $235.0 million of variable rate
debt at 5.25% until April 1, 2011.
(2) The Company has five lines of credit with a borrowing capacity
totaling $325.0 million, of which $285.0 million expires on June 30,
2011 and $40.0 million expires on August 30, 2011.
(3) On January 1, 2009, we retrospectively adopted new guidance
related to the accounting for convertible debt instruments that may
be settled in cash upon conversion (including partial cash
settlement). This new guidance required us to bifurcate the notes
into debt and equity components based on the fair value of the notes
independent of the conversion feature as of the date of issuance in
August 2006. As a result of this adoption, the bonds were recorded
with a debt discount based on a market interest rate of 6.11%. At
March 31, 2010, the unamortized discount on the remaining $7.2
million in exchangeable notes totaled $222,000. Our exchangeable
notes issued during 2006 mature in 2026. They are displayed in the
above table with a 2011 maturity date as this is the first date that
the noteholders can require us to repurchase the notes without the
occurrence of specified events.
(4) In December 2009, we closed on the refinancing of the Tanger
Wisconsin Dells mortgage loan. The new loan has a term of three years
with an interest rate of LIBOR plus 300 basis points.
(5) In May 2007, the joint venture entered into a four-year,
interest-only construction loan facility with a one-year maturity
extension option. The facility includes a senior loan, with an
interest rate of LIBOR plus 137.5 basis points, and a mezzanine loan,
with an interest rate of LIBOR plus 350 basis points. As of March 31,
2010, the outstanding principle balances of the senior and mezzanine
loans were $252.2 million and $15.0 million, respectively, and $16.8
million was available for funding of additional construction draw
requests under the senior loan facility. In February 2009, the joint
venture entered into an interest rate cap agreement on a nominal
amount of $240.0 million which became effective June 1, 2009. The
derivative contract puts a cap of 4% on the LIBOR index and expires
on April 1, 2011. In June 2008, the joint venture entered into an
interest-only mortgage loan agreement with an interest rate of LIBOR
plus 185 basis points and a maturity of May 17, 2011. As of March 31,
2010, the outstanding principle balance under this mortgage was $2.3
million.
| 16 | Supplemental Operating and Financial Data for the Quarter Ended 3/31/10 |
Future Scheduled Principal Payments (dollars in thousands)
| As of March 31, 2010 | |||||||||||
| Year |
Tanger Consolidated Payments |
Tanger's Share of Unconsolidated JV Payments |
Total Scheduled Payments |
||||||||
| 2010 | $ | --- | $ | --- | $ | --- | |||||
| 2011 (1) | 335,610 | 89,073 | 424,683 | ||||||||
| 2012 | --- | 12,625 | 12,625 | ||||||||
| 2013 | --- | --- | -- | ||||||||
| 2014 | --- | --- | -- | ||||||||
| 2015 | 250,000 | --- | 250,000 | ||||||||
| 2016 | --- | --- | --- | ||||||||
| 2017 | --- | --- | --- | ||||||||
| 2018 | --- | --- | --- | ||||||||
| 2019 & thereafter | --- | --- | --- | ||||||||
| $ | 585,610 | $ | 101,698 | $ | 687,308 | ||||||
| Net Discount on Debt | (798 | ) | --- | (798 | ) | ||||||
| $ | 584,812 | $ | 101,698 | $ | 686,510 | ||||||
Senior Unsecured Notes Financial Covenants (2)
| As of March 31, 2010 | |||||||||||
| Required | Actual | Compliance | |||||||||
| Total Consolidated Debt to Adjusted Total Assets | 60 | % | 36 | % | Yes | ||||||
| Total Secured Debt to Adjusted Total Assets | 40 | % | 0 | % | Yes | ||||||
| Total Unencumbered Assets to Unsecured Debt | 135 | % | 280 | % | Yes | ||||||
| Consolidated Income Available for Debt Service to Annual Debt Service Charge | 2.00 | 4.77 | Yes | ||||||||
(1) Included in this amount is $7.2 million which represents our
exchangeable, senior unsecured notes issued in August 2006. On and
after August 18, 2011, holders may exchange their notes for cash in
an amount equal to the lesser of the exchange value and the aggregate
principal amount of the notes to be exchanged, and, at our option,
Company common shares, cash or a combination thereof for any excess.
Note holders may exchange their notes prior to August 18, 2011 only
upon the occurrence of specified events. In addition, on August 18,
2011, August 15, 2016 or August 15, 2021, note holders may require us
to repurchase the notes for an amount equal to the principal amount
of the notes plus any accrued and unpaid interest thereon. The notes
are shown with a 2011 maturity as this is the first date that the
noteholders can require us to repurchase the notes without the
occurrence of specified events.
(2) 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.
| 17 | Supplemental Operating and Financial Data for the Quarter Ended 3/31/10 |
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) 856-6021
Fax: (336) 297-0931
e-mail: tangermail@tangeroutlet.com
Mail: Tanger Factory Outlet Centers, Inc.
3200 Northline Avenue
Suite 360
Greensboro, NC 27408
| 18 | Supplemental Operating and Financial Data for the Quarter Ended 3/31/10 |