TANGER FACTORY OUTLET CENTERS, INC - FORM 8-K/A - EX-99.2 - EXHIBIT SUPPLEMENT - November 12, 2013

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Exhibit 99.2
Tanger Factory Outlet Centers, Inc.
  
Supplemental Operating and Financial Data
September 30, 2013


1
Supplemental Operating and Financial Data for the
Quarter Ended 9/30/2013


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, 2012.
  
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 9/30/2013


Table of Contents
Section
 
 
 
Portfolio Data:
 
 
 
Geographic Diversification
Property Summary - Occupancy at End of Each Period Shown
Portfolio Occupancy at the End of Each Period
Major Tenants
Lease Expirations as of September 30, 2013
Leasing Activity
 
 
 
 
Financial Data:
 
 
 
Consolidated Balance Sheets
Consolidated Statements of Operations
FFO and FAD Analysis
Unconsolidated Joint Venture Information
Development Summary
Debt Outstanding Summary
Future Scheduled Principal Payments
Senior Unsecured Notes Financial Covenants
 
 
Investor Information


3
Supplemental Operating and Financial Data for the
Quarter Ended 9/30/2013


Geographic Diversification

Consolidated Properties
As of September 30, 2013
State
# of Centers
 
GLA
 
% of GLA
South Carolina
5

 
1,576,888

 
14
%
New York
2

 
1,471,715

 
13
%
Pennsylvania
3

 
874,474

 
8
%
Georgia
2

 
691,582

 
6
%
Texas
2

 
619,729

 
5
%
Delaware
1

 
568,975

 
5
%
Alabama
1

 
557,014

 
5
%
North Carolina
3

 
505,225

 
4
%
New Jersey
1

 
489,762

 
4
%
Tennessee
1

 
438,076

 
4
%
Michigan
2

 
437,222

 
4
%
Ohio
1

 
411,776

 
4
%
Louisiana
1

 
318,666

 
3
%
Missouri
1

 
302,922

 
3
%
Utah
1

 
298,391

 
2
%
Connecticut
1

 
289,898

 
2
%
Iowa
1

 
277,230

 
2
%
Oregon
1

 
270,212

 
2
%
Illinois
1

 
250,439

 
2
%
New Hampshire
1

 
245,698

 
2
%
Florida
1

 
198,877

 
2
%
Maryland
1

 
198,840

 
2
%
California
1

 
171,300

 
1
%
Maine
2

 
82,286

 
1
%
Total
37

 
11,547,197

 
100
%
Unconsolidated Joint Venture Properties
 
# of Centers
 
GLA
 
Ownership %
Texas City, TX
1

 
347,930

 
50.00
%
Glendale, AZ
1

 
331,739

 
58.00
%
Wisconsin Dells, WI
1

 
265,086

 
50.00
%
Bromont, QC
1

 
162,543

 
50.00
%
Cookstown, ON
1

 
155,522

 
50.00
%
Saint-Sauveur, QC
1

 
116,097

 
50.00
%
Total
6

 
1,378,917

 
 

4
Supplemental Operating and Financial Data for the
Quarter Ended 9/30/2013


Property Summary - Occupancy at End of Each Period Shown

Consolidated properties
 
 
 
 
 
 
 
 
 
 
Location
Total GLA
9/30/13
 
% Occupied
9/30/13
 
% Occupied
6/30/13
 
% Occupied
3/31/13
 
% Occupied
12/31/12
 
% Occupied
9/30/12
Deer Park, NY
741,981

 
95
%
 
N/A

 
N/A

 
N/A

 
N/A

Riverhead, NY
729,734

 
100
%
 
99
%
 
98
%
 
100
%
 
99
%
Rehoboth Beach, DE
568,975

 
100
%
 
97
%
 
98
%
 
100
%
 
100
%
Foley, AL
557,014

 
98
%
 
95
%
 
96
%
 
97
%
 
98
%
Atlantic City, NJ
489,762

 
95
%
 
94
%
 
94
%
 
96
%
 
96
%
San Marcos, TX
441,929

 
99
%
 
99
%
 
99
%
 
100
%
 
100
%
Sevierville, TN
438,076

 
99
%
 
99
%
 
98
%
 
100
%
 
100
%
Myrtle Beach Hwy 501, SC
425,247

 
100
%
 
100
%
 
99
%
 
98
%
 
99
%
Jeffersonville, OH
411,776

 
100
%
 
100
%
 
99
%
 
100
%
 
100
%
Myrtle Beach Hwy 17, SC
402,791

 
99
%
 
99
%
 
100
%
 
100
%
 
99
%
Pittsburgh, PA
372,972

 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
Commerce II, GA
370,512

 
99
%
 
99
%
 
100
%
 
100
%
 
100
%
Charleston, SC
365,107

 
100
%
 
98
%
 
97
%
 
100
%
 
99
%
Howell, MI
324,652

 
99
%
 
100
%
 
98
%
 
96
%
 
96
%
Locust Grove, GA
321,070

 
99
%
 
100
%
 
100
%
 
100
%
 
100
%
Mebane, NC
318,910

 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
Gonzales, LA
318,666

 
100
%
 
99
%
 
99
%
 
100
%
 
100
%
Branson, MO
302,922

 
100
%
 
100
%
 
100
%
 
100
%
 
99
%
Park City, UT
298,391

 
99
%
 
99
%
 
100
%
 
100
%
 
100
%
Westbrook, CT
289,898

 
99
%
 
98
%
 
98
%
 
100
%
 
99
%
Williamsburg, IA
277,230

 
99
%
 
99
%
 
99
%
 
100
%
 
100
%
Lincoln City, OR
270,212

 
99
%
 
98
%
 
98
%
 
99
%
 
98
%
Lancaster, PA
254,002

 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
Tuscola, IL
250,439

 
95
%
 
95
%
 
94
%
 
91
%
 
91
%
Hershey, PA
247,500

 
100
%
 
100
%
 
100
%
 
100
%
 
99
%
Tilton, NH
245,698

 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
Hilton Head II, SC
206,544

 
100
%
 
98
%
 
97
%
 
100
%
 
100
%
Fort Myers, FL
198,877

 
91
%
 
88
%
 
94
%
 
94
%
 
93
%
Ocean City, MD
198,840

 
100
%
 
97
%
 
89
%
 
93
%
 
93
%
Terrell, TX
177,800

 
99
%
 
97
%
 
97
%
 
96
%
 
94
%
Hilton Head I, SC
177,199

 
99
%
 
100
%
 
100
%
 
100
%
 
100
%
Barstow, CA
171,300

 
100
%
 
95
%
 
94
%
 
100
%
 
100
%
West Branch, MI
112,570

 
98
%
 
98
%
 
95
%
 
100
%
 
100
%
Blowing Rock, NC
104,154

 
100
%
 
99
%
 
99
%
 
99
%
 
97
%
Nags Head, NC
82,161

 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
Kittery I, ME
57,667

 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
Kittery II, ME
24,619

 
100
%
 
100
%
 
100
%
 
100
%
 
100
%
Total
11,547,197

 
99
%
 
98
%
 
98
%
 
99
%
 
99
%




5
Supplemental Operating and Financial Data for the
Quarter Ended 9/30/2013


Unconsolidated joint venture properties
 
 
 
 
 
 
 
 
 
 
Location
Total GLA
9/30/13
 
% Occupied
9/30/13
 
% Occupied
6/30/13
 
% Occupied
3/31/13
 
% Occupied
12/31/12
 
% Occupied
9/30/12
Deer Park, NY (1)
741,981

 
N/A

 
94
%
 
92
%
 
93
%
 
92
%
Texas City, TX
347,930

 
100
%
 
97
%
 
97
%
 
97
%
 
N/A

Glendale, AZ
331,739

 
100
%
 
97
%
 
95
%
 
94
%
 
N/A

Wisconsin Dells, WI
265,086

 
100
%
 
100
%
 
100
%
 
98
%
 
98
%
Bromont, QC
162,543

 
93
%
 
92
%
 
89
%
 
89
%
 
N/A

Cookstown, ON
155,522

 
95
%
 
99
%
 
97
%
 
100
%
 
100
%
Saint-Sauveur, QC
116,097

 
100
%
 
100
%
 
100
%
 
100
%
 
N/A

(1)
The Company acquired a controlling interest in the Deer Park, NY center on August 30, 2013. The center is now reported above in the section labeled consolidated properties.





6
Supplemental Operating and Financial Data for the
Quarter Ended 9/30/2013


Portfolio Occupancy at End of Each Period (1)

(1)
Excludes unconsolidated outlet centers. See table on page 4.
(2)
Excludes the occupancy rate at our Hilton Head I, South Carolina center which opened during the first quarter of 2011 and had not yet stabilized.



7
Supplemental Operating and Financial Data for the
Quarter Ended 9/30/2013


Major Tenants (1)
Ten Largest Tenants as of September 30, 2013
Tenant
# of
Stores

 
GLA

 
% of
Total GLA

The Gap, Inc.
84

 
903,879

 
7.8
%
Phillips-Van Heusen
131

 
690,947

 
6.0
%
Dress Barn, Inc.
91

 
533,132

 
4.6
%
Nike
37

 
392,570

 
3.4
%
VF Outlet, Inc.
44

 
386,606

 
3.3
%
Ann Taylor
47

 
321,229

 
2.8
%
Adidas
44

 
320,843

 
2.8
%
Polo Ralph Lauren
29

 
302,599

 
2.6
%
Carter's
61

 
286,554

 
2.5
%
Hanesbrands Direct, LLC
41

 
239,503

 
2.1
%
Total of All Listed Above
609

 
4,377,862

 
37.9
%
(1)
Excludes unconsolidated outlet centers. See table on page 4.





8
Supplemental Operating and Financial Data for the
Quarter Ended 9/30/2013


Lease Expirations as of September 30, 2013


(1)
Excludes unconsolidated outlet centers. See table on page 4.

9
Supplemental Operating and Financial Data for the
Quarter Ended 9/30/2013


Leasing Activity (1)
 
3/31/2013
 
6/30/2013
 
9/30/2013
 
12/31/2013
 
Year to Date
 
Prior
Year to
Date
Re-tenanted Space:
 
 
 

 
 

 
 
 
 

 
 

Number of leases
90

 
28

 
36

 

 
154

 
130

Gross leasable area
293,535

 
92,258

 
124,562

 

 
510,355

 
439,862

New initial base rent per square foot
$
26.97

 
$
25.27

 
$
30.92

 

 
$
27.63

 
$
29.09

Prior expiring base rent per square foot
$
23.35

 
$
21.32

 
$
22.72

 

 
$
22.83

 
$
20.91

Percent increase
15.5
%
 
18.5
%
 
36.1
%
 

 
21.0
%
 
39.1
%
 
 
 
 
 
 
 
 
 
 
 
 
New straight line base rent per square foot
$
29.76

 
$
27.76

 
$
34.56

 

 
$
30.57

 
$
31.54

Prior straight line base rent per square foot
$
22.52

 
$
20.50

 
$
22.68

 

 
$
22.19

 
$
20.49

Percent increase
32.2
%
 
35.4
%
 
52.4
%
 

 
37.8
%
 
53.9
%
 
 
 
 
 
 
 
 
 
 
 
 
Renewed Space:
 
 
 
 
 
 
 
 
 
 
 
Number of leases
231

 
32

 
43

 

 
306

 
277

Gross leasable area
1,135,107

 
153,344

 
168,522

 

 
1,456,973

 
1,357,837

New initial base rent per square foot
$
22.37

 
$
21.85

 
$
25.85

 

 
$
22.72

 
$
20.89

Prior expiring base rent per square foot
$
19.99

 
$
19.49

 
$
23.81

 

 
$
20.38

 
$
19.06

Percent increase
11.9
%
 
12.1
%
 
8.6
%
 

 
11.5
%
 
9.6
%
 
 
 
 
 
 
 
 
 
 
 
 
New straight line base rent per square foot
$
23.17

 
$
22.70

 
$
27.38

 

 
$
23.61

 
$
21.56

Prior straight line base rent per square foot
$
19.64

 
$
18.54

 
$
23.98

 

 
$
20.03

 
$
18.80

Percent increase
18.0
%
 
22.4
%
 
14.2
%
 

 
17.9
%
 
14.7
%
 
 
 
 
 
 
 
 
 
 
 
 
Total Re-tenanted and Renewed Space:
 
 
 
 
 
 
 
 
 
 
 
Number of leases
321

 
60

 
79

 

 
460

 
407

Gross leasable area
1,428,642

 
245,602

 
293,084

 

 
1,967,328

 
1,797,699

New initial base rent per square foot
$
23.32

 
$
23.13

 
$
28.00

 

 
$
23.99

 
$
22.89

Prior expiring base rent per square foot
$
20.68

 
$
20.18

 
$
23.35

 

 
$
21.02

 
$
19.51

Percent increase
12.6
%
 
14.7
%
 
20.0
%
 

 
14.2
%
 
17.3
%
 
 
 
 
 
 
 
 
 
 
 
 
New straight line base rent per square foot
$
24.52

 
$
24.60

 
$
30.43

 

 
$
25.42

 
$
24.00

Prior straight line base rent per square foot
$
20.23

 
$
19.28

 
$
23.43

 

 
$
20.59

 
$
19.22

Percent increase
21.2
%
 
27.6
%
 
29.9
%
 

 
23.4
%
 
24.9
%
(1)
Excludes unconsolidated outlet centers. See table on page 4.

10
Supplemental Operating and Financial Data for the
Quarter Ended 9/30/2013


Consolidated Balance Sheets (dollars in thousands)
 
9/30/2013
 
6/30/2013
 
3/31/2013
 
12/31/2012
 
9/30/2012
ASSETS
 
 
 
 
 
 
 
 
 
Rental property
 
 
 
 
 
 
 
 
 
Land
$
230,417

 
$
148,003

 
$
148,002

 
$
148,002

 
$
148,002

Buildings, improvements and fixtures
2,004,882

 
1,821,404

 
1,802,160

 
1,796,042

 
1,793,963

Construction in progress
4,375

 
2,531

 
6,336

 
3,308

 
—

 
2,239,674

 
1,971,938

 
1,956,498

 
1,947,352

 
1,941,965

Accumulated depreciation
(636,035
)
 
(618,644
)
 
(600,713
)
 
(582,859
)
 
(565,521
)
Total rental property, net
1,603,639

 
1,353,294

 
1,355,785

 
1,364,493

 
1,376,444

Cash and cash equivalents
10,482

 
5,450

 
2,691

 
10,335

 
9,511

Investments in unconsolidated joint ventures
136,922

 
162,094

 
133,982

 
126,632

 
82,676

Deferred lease costs and other intangibles, net
171,702

 
98,993

 
102,786

 
107,415

 
111,883

Deferred debt origination costs, net
7,275

 
7,921

 
8,534

 
9,083

 
9,619

Prepaids and other assets
71,943

 
69,205

 
63,353

 
60,842

 
56,211

Total assets
$
2,001,963

 
$
1,696,957

 
$
1,667,131

 
$
1,678,800

 
$
1,646,344

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
Debt
 
 
 
 
 
 
 
 
 
Senior, unsecured notes, net of discounts
$
548,247

 
$
548,174

 
$
548,103

 
$
548,033

 
$
547,964

Unsecured term loans, net of discounts
267,065

 
259,528

 
259,491

 
259,453

 
259,416

Mortgages payable, including premiums
251,533

 
104,237

 
105,346

 
107,745

 
108,672

Unsecured lines of credit
259,000

 
213,100

 
174,917

 
178,306

 
136,769

Total debt
1,325,845

 
1,125,039

 
1,087,857

 
1,093,537

 
1,052,821

Construction trade payables
5,272

 
5,595

 
7,744

 
7,084

 
10,525

Accounts payable & accruals
48,400

 
34,806

 
37,957

 
41,149

 
46,087

Deferred financing obligation
28,388

 
—

 
—

 
—

 
—

Other liabilities
33,101

 
21,223

 
22,134

 
23,155

 
23,816

Total liabilities
1,441,006

 
1,186,663

 
1,155,692

 
1,164,925

 
1,133,249

Commitments and contingencies
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
Tanger Factory Outlet Centers, Inc.
 
 
 
 
 
 
 
 
 
Common shares
945

 
944

 
944

 
941

 
939

Paid in capital
785,515

 
771,265

 
768,702

 
766,056

 
762,821

Accumulated distributions in excess of net income
(262,173
)
 
(294,237
)
 
(289,880
)
 
(285,588
)
 
(283,943
)
Accumulated other comprehensive income
1,179

 
1,343

 
1,179

 
1,200

 
1,252

  Equity attributable to Tanger Factory Outlet
  Centers, Inc.
525,466

 
479,315

 
480,945

 
482,609

 
481,069

Equity attributable to noncontrolling interests
 
 
 
 
 
 
 
 
 
Noncontrolling interests in Operating Partnership
28,615

 
24,100

 
24,184

 
24,432

 
25,218

Noncontrolling interest in other consolidated partnerships
6,876

 
6,879

 
6,310

 
6,834

 
6,808

Total equity
560,957

 
510,294

 
511,439

 
513,875

 
513,095

Total liabilities, noncontrolling interest and equity
$
2,001,963

 
$
1,696,957

 
$
1,667,131

 
$
1,678,800

 
$
1,646,344


11
Supplemental Operating and Financial Data for the
Quarter Ended 9/30/2013


Consolidated Statements of Operations (dollars and shares in thousands)
 
 
 
Three Months Ended
 
YTD
 
9/30/13
 
6/30/13
 
3/31/13
 
12/31/12
 
9/30/12
 
 
9/30/13
 
9/30/12
REVENUES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Base rentals
$
64,301

 
$
61,046

 
$
59,244

 
$
59,769

 
$
59,662

 
 
$
184,591

 
$
175,464

Percentage rentals
3,084

 
1,855

 
2,017

 
4,630

 
3,180

 
 
6,956

 
6,542

Expense reimbursements
27,414

 
25,824

 
25,306

 
27,333

 
24,908

 
 
78,544

 
73,777

Other income
3,104

 
2,290

 
2,122

 
3,204

 
2,733

 
 
7,516

 
6,278

Total revenues
97,903

 
91,015

 
88,689

 
94,936

 
90,483

 
 
277,607

 
262,061

EXPENSES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property operating
29,863

 
28,821

 
28,135

 
29,481

 
27,614

 
 
86,819

 
81,679

General & administrative
9,754

 
9,914

 
9,572

 
9,715

 
9,018

 
 
29,240

 
27,737

Acquisition costs
532

 
252

 
179

 
117

 
—

 
 
963

 
—

Depreciation and amortization
24,223

 
22,172

 
22,288

 
23,436

 
24,809

 
 
68,683

 
75,247

Total expenses
64,372

 
61,159

 
60,174

 
62,749

 
61,441

 
 
185,705

 
184,663

Operating income
33,531

 
29,856

 
28,515

 
32,187

 
29,042

 
 
91,902

 
77,398

Interest expense
(12,367
)
 
(12,583
)
 
(12,876
)
 
(12,752
)
 
(12,317
)
 
 
(37,826
)
 
(37,062
)
Gain on previously held interest in acquired joint venture
26,002

 
—

 
—

 
—

 
—

 
 
26,002

 
—

Income before equity in losses of unconsolidated joint ventures
47,166

 
17,273

 
15,639

 
19,435

 
16,725

 
 
80,078

 
40,336

Equity in earnings (losses) of unconsolidated joint ventures
9,014

 
503

 
590

 
(421
)
 
(555
)
 
 
10,107

 
(2,874
)
Net income
56,180

 
17,776

 
16,229

 
19,014

 
16,170

 
 
90,185

 
37,462

Noncontrolling interests in Operating Partnership
(2,787
)
 
(859
)
 
(789
)
 
(952
)
 
(836
)
 
 
(4,435
)
 
(2,315
)
Noncontrolling interests in other consolidated partnerships
(99
)
 
(29
)
 
(1
)
 
(6
)
 
(7
)
 
 
(129
)
 
25

Net income attributable to Tanger Factory Outlet Centers, Inc.
53,294

 
16,888

 
15,439

 
18,056

 
15,327

 
 
85,621

 
35,172

Allocation to participating securities
(609
)
 
(231
)
 
(194
)
 
(208
)
 
(209
)
 
 
(932
)
 
(576
)
Net income available to common shareholders
$
52,685

 
$
16,657

 
$
15,245

 
$
17,848

 
$
15,118

 
 
$
84,689

 
$
34,596

Basic earnings per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
0.56

 
$
0.18

 
$
0.16

 
$
0.19

 
$
0.16

 
 
$
0.91

 
$
0.38

Diluted earnings per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
0.56

 
$
0.18

 
$
0.16

 
$
0.19

 
$
0.16

 
 
$
0.90

 
$
0.37

Weighted average common shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
93,368

 
93,331

 
93,132

 
92,845

 
92,674

 
 
93,278

 
91,359

Diluted
94,300

 
94,207

 
94,043

 
93,807

 
93,647

 
 
94,210

 
92,302





12
Supplemental Operating and Financial Data for the
Quarter Ended 9/30/2013


FFO and FAD Analysis (dollars and shares in thousands)
 
 
 
Three Months Ended
 
YTD
 
9/30/13
 
6/30/13
 
3/31/13
 
12/31/12
 
9/30/12
 
 
9/30/13
 
9/30/12
Funds from operations:
 
 
 
 
 
 
 
 
 
 
 
 

 
 

Net income
$
56,180

 
$
17,776

 
$
16,229

 
$
19,014

 
$
16,170

 
 
$
90,185

 
$
37,462

Adjusted for -
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization uniquely significant to real estate - consolidated properties
23,888

 
21,867

 
22,043

 
23,217

 
24,532

 
 
67,798

 
74,543

Depreciation and amortization uniquely significant to real estate - unconsolidated joint ventures
2,861

 
3,431

 
3,173

 
2,996

 
1,641

 
 
9,465

 
5,109

Gain on previously held interest in acquired joint venture
(26,002
)
 
—

 
—

 
—

 
—

 
 
(26,002
)
 
—

Impairment charge - unconsolidated joint ventures
—

 
—

 
—

 
—

 
—

 
 
—

 
140

Funds from operations
56,927

 
43,074

 
41,445

 
45,227

 
42,343

 
 
141,446

 
117,254

FFO attributable to noncontrolling interests in other consolidated partnerships
(117
)
 
(66
)
 
(7
)
 
(36
)
 
(4
)
 
 
(190
)
 
10

Allocation to participating securities
(614
)
 
(461
)
 
(425
)
 
(451
)
 
(425
)
 
 
(1,501
)
 
(1,123
)
Funds from operations available to
    common shareholders
$
56,196

 
$
42,547

 
$
41,013

 
$
44,740

 
$
41,914

 
 
$
139,755

 
$
116,141

Funds from operations per share
$
0.57

 
$
0.43

 
$
0.42

 
$
0.45

 
$
0.42

 
 
$
1.41

 
$
1.18

Funds available for distribution to common shareholders:
 
 

 
 

 
 
 
 
 

Funds from operations
$
56,196

 
$
42,547

 
$
41,013

 
$
44,740

 
$
41,914

 
 
$
139,755

 
$
116,141

Adjusted for -
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate depreciation excluded above
335

 
305

 
245

 
219

 
276

 
 
885

 
704

Amortization of finance costs
594

 
598

 
603

 
591

 
576

 
 
1,795

 
1,722

Amortization of net debt discount (premium)
(254
)
 
(252
)
 
(261
)
 
(254
)
 
(253
)
 
 
(767
)
 
(753
)
Amortization of share-based compensation
2,964

 
2,939

 
2,460

 
2,338

 
2,339

 
 
8,363

 
7,958

Straight line rent adjustment
(1,587
)
 
(1,393
)
 
(1,087
)
 
(783
)
 
(1,009
)
 
 
(4,067
)
 
(2,866
)
Market rent adjustment
235

 
181

 
(27
)
 
141

 
(59
)
 
 
389

 
(489
)
2nd generation tenant allowances
(4,435
)
 
(5,442
)
 
(1,885
)
 
(5,901
)
 
(1,297
)
 
 
(11,762
)
 
(10,013
)
Capital improvements
(3,404
)
 
(6,735
)
 
(2,882
)
 
(1,410
)
 
(2,951
)
 
 
(13,021
)
 
(6,342
)
Adjustments from unconsolidated joint ventures
(4,711
)
 
(220
)
 
(30
)
 
17

 
257

 
 
(4,960
)
 
503

Funds available for distribution
$
45,933

 
$
32,528

 
$
38,149

 
$
39,698

 
$
39,793

 
 
$
116,610

 
$
106,565

Funds available for distribution
   per share
$
0.46

 
$
0.33

 
$
0.39

 
$
0.40

 
$
0.40

 
 
$
1.18

 
$
1.08

Dividends paid per share
$
0.225

 
$
0.225

 
$
0.210

 
$
0.210

 
$
0.210

 
 
$
0.660

 
$
0.620

FFO payout ratio
40
%
 
53
%
 
50
%
 
47
%
 
50
%
 
 
47
%
 
53
%
FAD payout ratio
50
%
 
70
%
 
54
%
 
53
%
 
53
%
 
 
56
%
 
57
%
Diluted weighted average common shs.
99,178

 
98,955

 
98,798

 
98,699

 
98,699

 
 
99,004

 
98,599


13
Supplemental Operating and Financial Data for the
Quarter Ended 9/30/2013



Unconsolidated Joint Venture Information (1) 

The following table details certain information as of September 30, 2013, except for Net Operating Income ("NOI") which is for the nine months ended September 30, 2013, about various unconsolidated real estate joint ventures in which we have an ownership interest (dollars in millions):
Joint Venture
 
Center Location
 
Ownership %
 
Square Feet
 
Tanger's Share of Total Assets
 
Tanger's Share of NOI
 
Tanger's Share of Debt
Charlotte (2)
 
Charlotte, NC
 
50.0
%
 
—

 
$
6.0

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Galveston/Houston
 
Texas City, TX
 
50.0
%
 
347,930

 
41.04

 
3.6

 
32.5

 
 
 
 
 
 
 
 
 
 
 
 
 
National Harbor (2)
 
Washington D.C.
Metro Area
 
50.0
%
 
—

 
36.4

 
—

 
14.0

 
 
 
 
 
 
 
 
 
 
 
 
 
RioCan Canada (3)
 
Various
 
50.0
%
 
434,162

 
96.2

 
3.2

 
9.5

 
 
 
 
 
 
 
 
 
 
 
 
 
Westgate
 
Glendale, AZ
 
58.0
%
 
331,739

 
42.3

 
3.4

 
25.0

 
 
 
 
 
 
 
 
 
 
 
 
 
Wisconsin Dells
 
Wisconsin Dells, WI
 
50.0
%
 
265,086

 
15.01

 
1.69

 
12.1

 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
0.2

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
$
237.2

 
$
11.9

 
$
93.1

(1)
Excludes the Deer Park Outlet Center, in which the Company acquired a controlling interest on August 30, 2013.
(2)
Center is currently under development.
(3)
Includes a 155,522 square foot center in Cookstown, Ontario that was acquired in December of 2011, a 162,543 square foot center in Bromont, Quebec and a 116,097 square foot center in Saint-Sauveur, Quebec, both of which were acquired in November of 2012, as well as investments related to the construction and development of an outlet center in Ottawa, Ontario and an expansion of the outlet center in Cookstown, Ontario, and due diligence costs for additional potential sites in Canada.



14
Supplemental Operating and Financial Data for the
Quarter Ended 9/30/2013


Unconsolidated Joint Venture Information
Summary Combined Balance Sheets (dollars in thousands)
 
9/30/2013
 
6/30/2013
 
3/31/2013
 
12/31/2012
 
9/30/2012
 
 
 
Tanger's Share as of 9/30/13
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Land
$
49,184

 
$
94,961

 
$
95,748

 
$
96,455

 
$
64,321

 
 
 
$
25,574

Buildings, improvements and fixtures
256,652

 
493,100

 
495,958

 
493,424

 
295,593

 
 
 
132,914

Construction in progress, including land
138,615

 
90,413

 
21,974

 
16,338

 
127,379

 
 
 
69,308

 
444,451

 
678,474

 
613,680

 
606,217

 
487,293

 
 
 
227,796

Accumulated depreciation
(25,561
)
 
(74,642
)
 
(68,667
)
 
(62,547
)
 
(57,067
)
 
 
 
(13,025
)
Total rental property, net
418,890

 
603,832

 
545,013

 
543,670

 
430,226

 
 
 
214,771

Assets held for sale (1)
—

 
—

 
—

 
1,828

 
1,821

 
 
 
—

Cash and cash equivalents
13,727

 
16,511

 
20,531

 
21,879

 
10,778

 
 
 
7,178

Deferred lease costs, net
20,012

 
21,285

 
23,080

 
24,411

 
13,586

 
 
 
10,110

Deferred debt origination costs, net
1,970

 
4,025

 
4,399

 
5,213

 
5,773

 
 
 
1,027

Prepaids and other assets
8,167

 
26,181

 
24,900

 
25,350

 
21,396

 
 
 
4,137

Total assets
$
462,766

 
$
671,834

 
$
617,923

 
$
622,351

 
$
483,580


 
 
$
237,223

 
 
 
 
 
 
 
 
 
 

 
 
 
 

Liabilities & Owners' Equity
 
 
 
 
 
 
 
 
 

 
 
 
 

Mortgages payable
$
179,212

 
$
336,338

 
$
329,262

 
$
325,192

 
$
288,978

 
 
 
$
93,051

Construction trade payables
13,950

 
10,842

 
14,232

 
21,734

 
14,506

 
 
 
7,061

Accounts payable & other liabilities
6,253

 
14,830

 
16,726

 
31,944

 
26,125

 
 
 
3,236

Total liabilities
199,415

 
362,010

 
360,220

 
378,870

 
329,609


 
 
103,348

Owners' equity
263,351

 
309,824

 
257,703

 
243,481

 
153,971

 
 
 
133,875

Total liabilities & owners' equity
$
462,766

 
$
671,834

 
$
617,923

 
$
622,351

 
$
483,580


 
 
$
237,223

(1)
Assets related to our Deer Park Warehouse joint venture, which were sold in March 2013.

15
Supplemental Operating and Financial Data for the
Quarter Ended 9/30/2013


Unconsolidated Joint Venture Information
Summary Combined Statements of Operations (dollars in thousands)
 
Three Months Ended
 
YTD
 
9/30/13
 
6/30/13
 
3/31/13
 
12/31/12
 
9/30/12
 
 
 
9/30/13
 
9/30/12
Revenues
$
29,013

 
$
20,553

 
$
21,395

 
$
19,687

 
$
11,985

 
 
 
$
70,961

 
$
35,249

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property operating
7,808

 
8,546

 
9,140

 
9,183

 
5,521

 
 
 
25,440

 
15,495

General & administrative
629

 
166

 
148

 
205

 
365

 
 
 
962

 
765

Acquisition costs
19

 
53

 
421

 
733

 
—

 
 
 
474

 
704

Abandoned development costs
19

 
134

 
—

 
57

 
—

 
 
 
153

 
1,390

Impairment charge
—

 
—

 
—

 
—

 
—

 
 
 
—

 
420

Depreciation & amortization
6,232

 
7,584

 
7,384

 
6,723

 
4,283

 
 
 
21,200

 
13,191

Total expenses
14,707

 
16,483

 
17,093

 
16,901

 
10,169

 
 
 
48,229

 
31,965

Operating income
14,306

 
4,070

 
4,302

 
2,786

 
1,816

 


22,732

 
3,284

Gain on early extinguishment of debt
13,820

 
—

 
—

 
—

 
—

 
 
 
13,820

 
—

Interest expense
2,840

 
3,514

 
4,052

 
3,793

 
3,540

 
 
 
10,406

 
10,967

Net income (loss)
$
25,286

 
$
556

 
$
250

 
$
(1,007
)
 
$
(1,724
)
 


$
26,146

 
$
(7,683
)
Tanger's share of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenues less property operating and general & administrative expenses ("NOI")
$
8,449

 
$
5,334

 
$
5,443

 
$
4,326

 
$
2,303

 
 
 
$
19,217

 
$
7,208

Net income (loss)
$
9,014

 
$
503

 
$
590

 
$
(421
)
 
$
(555
)
 
 
 
$
10,107

 
$
(2,874
)
Depreciation and impairments (real estate related)
$
2,861

 
$
3,431

 
$
3,173

 
$
2,996

 
$
1,641

 
 
 
$
9,465

 
$
5,249


16
Supplemental Operating and Financial Data for the
Quarter Ended 9/30/2013


External Growth Pipeline Summary
Represents Tanger's expectations as of October 29, 2013

Project/Market
Approximate
Size (000 SF)
Projected
Total Cost
(Millions)
Tanger
Share
Projected
Return
Projected
Opening
 
 
 
 
 
 
 
UNITED STATES:
 
 
 
 
 
New development
 
 
 
 
 
National Harbor, Washington, D.C. metro area
340
$99 - $101
50%
9% - 10%
November 2013
Foxwoods, Mashantucket, CT (2)
314
$110 - $120
67%
(1)
2Q 2015
Charlotte, NC
400
$85 - $95
50%
(1)
3Q 2014
Columbus, OH
350
$75 - $85
50%
(1)
1H 2015
Scottsdale, AZ
220
$45 - $55
100%
(1)
1H 2015
 
 
 
 
 
 
 
Expansions
 
 
 
 
 
Park City, UT
21
$5.5 - $6.5
100%
9.5 - 10.5%
3Q 2014
 
 
 
 
 
 
 
CANADA:
 
 
 
 
 
New development
 
 
 
 
 
Kanata, ON (Ottawa)
303
$115 - $120
50%
8% - 9%
4Q 2014
 
 
 
 
 
 
 
Expansions
 
 
 
 
 
Cookstown, ON (N. Toronto)
153
$65 - $75
50%
5.5% - 6.5%
4Q 2014
Saint-Sauveur, QC (NW Montreal)
20
$5.5 - $6.5
50%
(1)
2H 2014
 
 
(1)
While actual returns for individual projects may vary, the company's current targeted stabilized return on cost for development projects is 9% - 11% in the US and 8% - 10% in Canada.
(2)
Based on capital contribution and distribution provisions in the joint venture agreement, we expect our economic interest in the venture's cash flow to be greater than indicated in the Tanger Share column, which in this case, states the company's legal interest in this venture. The company's economic interest may fluctuate based on a number of factors, including mortgage financing, partnership capital contributions and distributions, and proceeds from gains or losses of asset sales.
 
 
 
 
 
 
 
Company estimates, projections and judgments with respect to approximate size, projected total cost, Tanger share, projected return, and return on cost for development and expansion projects are subject to adjustment prior to and during the development process. There are risks inherent to real estate development, some of which are not under the direct control of the company. Please refer to the company's filings with the Securities and Exchange Commission on Form 10-K and Form 10-Q for a discussion of these risks.




17
Supplemental Operating and Financial Data for the
Quarter Ended 9/30/2013


Debt Outstanding Summary (dollars in thousands)
As of September 30, 2013
 
Principal
Balance
 
Stated
Interest Rate
 
Effective Interest Rate
 
Maturity
Date
Unsecured debt:
 

 
 
 
 
 
 
Unsecured lines of credit (1)
$
259,000

 
Libor + 1.10%
 
 
 
11/10/2015
2015 Senior unsecured notes
250,000

 
6.15%
 
 
 
11/15/2015
2020 Senior unsecured notes
300,000

 
6.125%
 
 
 
6/1/2020
Unsecured term loan
250,000

 
Libor + 1.60%
 
 
 
2/23/2019
Unsecured term note
7,500

 
Libor + 1.30%
 
 
 
8/30/2017
Unsecured note
10,000

 
1.50%
 
3.153
%
 
6/30/2016
Net debt discounts
(2,188
)
 
 
 
 
 
 
Total unsecured debt
$
1,074,312

 
 
 
 
 
 
Secured mortgage debt:
 
 
 
 
 
 
 
Atlantic City, NJ (including premium of $4,189) (2)
$
53,337

 
5.14% - 7.65%
 
5.05
%
 
11/15/2021 - 12/15/2026
Deer Park, NY (3) (net of discount of $1,583)
148,417

 
Libor + 1.50%
 
 
 
8/30/2018
Hershey, PA (including premium of $1,141) (2)
31,280

 
5.17% - 8.00%
 
3.40
%
 
8/1/2015
Ocean City, MD (including premium of $216) (2)
18,499

 
5.24%
 
4.68
%
 
1/6/2016
Total secured mortgage debt
$
251,533

 
 
 
 
 
 
Tanger's share of unconsolidated JV debt:
 

 
 
 
 
 
 
Galveston/Houston (4)
$
32,500

 
Libor + 1.50%
 
 
 
7/01/2017
National Harbor (5)
14,031

 
Libor + 1.65%
 
 
 
5/16/2016
RioCan Canada (including premium of $631) (6)
9,421

 
5.10% - 5.75%
 
3.93% - 4.18%

 
6/22/2015 - 5/10/2020
Westgate (7)
24,974

 
Libor + 1.75%
 
 
 
6/27/2015
Wisconsin Dells (8)
12,125

 
Libor + 2.25%
 
 
 
12/17/2022
Total Tanger's share of unconsolidated JV debt
$
93,051

 
 
 
 
 
 
(1)
The Company has an unsecured, syndicated credit line with a borrowing capacity totaling $500.0 million and a separate cash management line of credit with a borrowing capacity of $20.0 million with one of the participants in the syndication. On October 24, 2013, both lines were amended, extending maturity to October 24, 2017 with the option to further extend the maturity for one additional year, reducing the stated interest rate to Libor + 1.00%, and reducing the facility fees, which are payable based on the full amount of the commitment, to 15 basis points annually from 17.5 basis points.

(2)
Represents mortgages assumed in the acquisitions of various properties owned by joint ventures which are consolidated for financial reporting purposes.
  
(3)
On August 30, 2013, as part of the acquisition of a controlling interest in Deer Park, we assumed an interest-only mortgage loan that has a 5 year term and carries an interest rate of LIBOR + 1.50%. In October 2013, we entered into interest rate swap agreements that fix the base LIBOR rate at an average of 1.30%, creating a contractual interest rate of 2.80%.

(4)
In July 2013, the joint venture closed on a $70.0 million mortgage loan with a rate of LIBOR + 1.50% and a maturity date of July 1, 2017, with the option to extend the maturity for one additional year. As of September 30, 2013, the balance on the loan was $65 million.

(5)
In May 2013, the joint venture closed on a construction loan with the ability to borrow up to $62.0 million, which carries an interest rate of LIBOR + 1.65%. As of September 30, 2013, the balance on the loan was $28.1 million.

(6)
Represents the mortgages assumed related to the acquisition of the Saint-Sauveur, Quebec property by the RioCan joint venture in November 2012. The mortgages have a balance of $17.5 million and carry a weighted average interest rate of 5.7% and mature in 2015 and 2020, respectively.

18
Supplemental Operating and Financial Data for the
Quarter Ended 9/30/2013



(7)
In June 2012, the joint venture closed on a construction loan with the ability to borrow up to $48.3 million, which carries an interest rate of LIBOR + 1.75%. As of September 30, 2013, the balance on the loan was $43.1 million.

(8)
In December 2012, the joint venture closed on the refinance of its $24.3 million mortgage loan which had an initial maturity date of December 17, 2012. The refinanced interest-only, non-recourse mortgage loan has a 10 year term and carries an interest rate of LIBOR + 2.25%.



19
Supplemental Operating and Financial Data for the
Quarter Ended 9/30/2013


Future Scheduled Principal Payments (dollars in thousands)
As of September 30, 2013
Year
Tanger
Consolidated
Payments
 
Tanger's Share
of Unconsolidated
JV Payments
 
Total
Scheduled
Payments
2013
$
871

 
$
82

 
$
953

2014
3,603

 
337

 
3,940

2015 (1)
541,344

 
25,308

 
566,652

2016
30,283

 
15,184

 
45,467

2017
10,508

 
32,849

 
43,357

2018
153,183

 
370

 
153,553

2019
253,369

 
391

 
253,760

2020
303,567

 
5,774

 
309,341

2021
5,793

 
—

 
5,793

2022
4,436

 
12,125

 
16,561

2023 & thereafter
17,113

 


 
17,113

 
$
1,324,070

 
$
92,420

 
$
1,416,490

Net Premiums on Debt
1,775

 
631

 
2,406

 
$
1,325,845

 
$
93,051

 
$
1,418,896

Senior Unsecured Notes Financial Covenants (2) 
As of September 30, 2013
 
Required
 
Actual
 
Compliance
Total Consolidated Debt to Adjusted Total Assets
<60%
 
48
%
 
Yes
Total Secured Debt to Adjusted Total Assets
<40%
 
9
%
 
Yes
Total Unencumbered Assets to Unsecured Debt
>135%
 
187
%
 
Yes
Consolidated Income Available for Debt Service to Annual Debt Service Charge
>1.5
 
4.70

 
Yes
(1)
Includes balances of $259.0 million outstanding under the company's unsecured lines of credit. These lines were amended on October 24, 2013, extending maturity to October 24, 2017.
(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.


20
Supplemental Operating and Financial Data for the
Quarter Ended 9/30/2013


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) 834-6892
Fax:
(336) 297-0931
e-mail:
tangermail@tangeroutlet.com
Mail:
Tanger Factory Outlet Centers, Inc.
 
3200 Northline Avenue
 
Suite 360
 
Greensboro, NC 27408


21
Supplemental Operating and Financial Data for the
Quarter Ended 9/30/2013

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