TANGER FACTORY OUTLET CENTERS, INC - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - August 4, 2015

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Exhibit 99.2
Tanger Factory Outlet Centers, Inc.
  
Supplemental Operating and Financial Data
June 30, 2015


1
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2015


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, 2014.
  
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 6/30/2015


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
Average Tenant Sales Per Square Foot by Outlet Center Ranking
Major Tenants
Lease Expirations as of June 30, 2015
Leasing Activity
 
 
 
 
Financial Data:
 
 
 
Consolidated Balance Sheets
Consolidated Statements of Operations
FFO and FAD Analysis
Unconsolidated Joint Venture Information
Pro Rata Balance Sheet
Pro Rata Statement of Operations
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 6/30/2015


Geographic Diversification

Consolidated Properties
As of June 30, 2015
State
# of Centers
 
GLA
 
% of GLA
South Carolina
5

 
1,593,898

 
14
%
New York
2

 
1,478,808

 
13
%
Pennsylvania
3

 
874,460

 
8
%
Georgia
2

 
692,478

 
6
%
Texas
2

 
619,621

 
5
%
Connecticut
2

 
601,542

 
3
%
Delaware
1

 
565,707

 
5
%
Alabama
1

 
557,014

 
5
%
North Carolina
3

 
505,123

 
4
%
New Jersey
1

 
489,706

 
4
%
Tennessee
1

 
448,335

 
4
%
Michigan
2

 
432,459

 
4
%
Ohio
1

 
411,776

 
4
%
Missouri
1

 
329,861

 
3
%
Utah
1

 
319,661

 
3
%
Louisiana
1

 
318,666

 
3
%
Iowa
1

 
276,230

 
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

 
76,356

 
1
%
Total
37

 
11,656,855

 
100
%
Unconsolidated Joint Venture Properties
 
# of Centers
 
GLA
 
Ownership %
Glendale, AZ
1

 
410,664

 
58.00
%
Charlotte, NC
1

 
397,837

 
50.00
%
Savannah, GA
1

 
377,301

 
50.00
%
Texas City, TX
1

 
352,705

 
50.00
%
National Harbor, MD
1

 
338,786

 
50.00
%
Cookstown, ON
1

 
308,803

 
50.00
%
Ottawa, ON (1)
1

 
284,218

 
50.00
%
Bromont, QC
1

 
161,449

 
50.00
%
Saint-Sauveur, QC
1

 
115,717

 
50.00
%
Total
9

 
2,747,480

 
 
(1)
Excludes square feet to be completed and turned over to a magnet tenant at a later date.

4
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2015


Property Summary - Occupancy at End of Each Period Shown

Consolidated properties
 
 
 
 
 
 
 
 
 
 
Location
Total GLA
6/30/15
 
% Occupied
6/30/15
 
% Occupied
3/31/15
 
% Occupied
12/31/14
 
% Occupied
9/30/14
 
% Occupied
6/30/14
Deer Park, NY
749,074

 
94
%
 
94
%
 
95
%
 
95
%
 
94
%
Riverhead, NY
729,734

 
97
%
 

97
%
 
99
%
 
98
%
 
99
%
Rehoboth Beach, DE
565,707

 
99
%
 

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

 
96
%
 

96
%
 
96
%
 
96
%
 
98
%
Atlantic City, NJ
489,706

 
95
%
 
94
%
 
94
%
 
90
%
 
93
%
Sevierville, TN
448,335

 
100
%
 

99
%
 
100
%
 
100
%
 
100
%
San Marcos, TX
441,821

 
95
%
 

97
%
 
99
%
 
99
%
 
100
%
Myrtle Beach Hwy 501, SC
425,247

 
98
%
 

96
%
 
96
%
 
98
%
 
98
%
Jeffersonville, OH
411,776

 
97
%
 
98
%
 
98
%
 
97
%
 
97
%
Myrtle Beach Hwy 17, SC
402,791

 
100
%
 

100
%
 
100
%
 
100
%
 
100
%
Charleston, SC
382,117

 
99
%
 

99
%
 
99
%
 
99
%
 
99
%
Pittsburgh, PA
372,958

 
99
%
 

99
%
 
100
%
 
100
%
 
100
%
Commerce II, GA
371,408

 
96
%
 

92
%
 
99
%
 
99
%
 
100
%
Branson, MO
329,861

 
99
%
 

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

 
99
%
 

100
%
 
100
%
 
100
%
 
99
%
Howell, MI
319,889

 
93
%
 

93
%
 
98
%
 
98
%
 
98
%
Park City, UT
319,661

 
99
%
 

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

 
100
%
 
97
%
 
100
%
 
99
%
 
100
%
Gonzales, LA
318,666

 
100
%
 

100
%
 
100
%
 
100
%
 
97
%
Foxwoods, CT
311,644

 
91
%
 
N/A

 
N/A

 
N/A

 
N/A

Westbrook, CT
289,898

 
95
%
 

95
%
 
96
%
 
95
%
 
97
%
Williamsburg, IA
276,230

 
97
%
 

99
%
 
100
%
 
100
%
 
100
%
Lancaster, PA
254,002

 
99
%
 

99
%
 
100
%
 
100
%
 
100
%
Tuscola, IL
250,439

 
88
%
 

85
%
 
87
%
 
87
%
 
90
%
Hershey, PA
247,500

 
95
%
 
100
%
 
100
%
 
100
%
 
100
%
Tilton, NH
245,698

 
96
%
 

96
%
 
99
%
 
98
%
 
96
%
Hilton Head II, SC
206,544

 
95
%
 

95
%
 
100
%
 
100
%
 
100
%
Fort Myers, FL
198,877

 
91
%
 

93
%
 
91
%
 
90
%
 
90
%
Ocean City, MD
198,840

 
99
%
 
97
%
 
98
%
 
99
%
 
99
%
Terrell, TX
177,800

 
95
%
 

96
%
 
99
%
 
100
%
 
93
%
Hilton Head I, SC
177,199

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

 
100
%
 

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

 
88
%
 

88
%
 
94
%
 
94
%
 
94
%
Blowing Rock, NC
104,052

 
97
%
 

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

 
100
%
 

94
%
 
100
%
 
100
%
 
100
%
Kittery I, ME
51,737

 
100
%
 

100
%
 
100
%
 
93
%
 
100
%
Kittery II, ME
24,619

 
92
%
 

100
%
 
100
%
 
100
%
 
100
%
Lincoln City, OR (2)
N/A

 
N/A

 
N/A

 
N/A

 
98
%
 
100
%
Total
11,656,855

 
97
%
(1 
) 
97
%
 
98
%
 
98
%
 
98
%
(1)
Excludes the occupancy rate at our Foxwoods, CT center which opened during the second quarter of 2015 and had not yet stabilized.
(2)
Sold center in December 2014.

5
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2015




Unconsolidated joint venture properties
 
 
 
 
 
 
 
 
 
 
Location
Total GLA
6/30/15
 
% Occupied
6/30/15
 
% Occupied
3/31/15
 
% Occupied
12/31/14
 
% Occupied
9/30/14
 
% Occupied
6/30/14
Glendale, AZ
410,664

 
99
%
 
99
%
 
97
%
 
100
%
 
99
%
Charlotte, NC (1)
397,837

 
99
%
 
98
%
 
99
%
 
99
%
 
N/A

Savannah, GA (2)
377,301

 
96
%
 
N/A

 
N/A

 
N/A

 
N/A

Texas City, TX
352,705

 
100
%
 
98
%
 
100
%
 
100
%
 
99
%
National Harbor, MD
338,786

 
99
%
 
97
%
 
100
%
 
100
%
 
97
%
Cookstown, ON
308,803

 
93
%
 
96
%
 
96
%
 
95
%
 
98
%
Ottawa, ON (3) (4)
284,218

 
95
%
 
92
%
 
95
%
 
N/A

 
N/A

Bromont, QC
161,449

 
74
%
 
73
%
 
81
%
 
81
%
 
81
%
Saint-Sauveur, QC
115,717

 
97
%
 
92
%
 
100
%
 
100
%
 
100
%
Wisconsin Dells, WI (5)
—

 
N/A

 
N/A

 
100
%
 
100
%
 
100
%
Total
2,747,480

 
96
%
 
95
%
 
97
%
 
98
%
 
97
%
(1)
Center opened in July 2014.
(2)
Center opened in April 2015.
(3)
Excludes square feet to be completed and turned over to a magnet tenant at a later date.
(4)
Center opened in October 2014.
(5)
Sold our equity interest in center in February 2015.






6
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2015


Portfolio Occupancy at the End of Each Period (1) 
(1)
Excludes unconsolidated outlet centers. See table on page 4.




7
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2015


Average Tenant Sales Per Square Foot by Outlet Center Ranking As of June 30, 2015(1) 
 
 
 12 Months
 Period End
 Sq Ft
% of
% of Portfolio
 Ranking (2)
 SPSF
 Occupancy %
 (in thousands)
 Square Feet
 NOI (3)
Consolidated Centers
 
 
 
 
 
Centers 1 - 5
$
542

97
%
2,181

19
%
25
%
Centers 6 - 10
$
446

99
%
1,730

15
%
19
%
Centers 11 - 15
$
406

97
%
1,954

17
%
18
%
Centers 16 - 20
$
356

98
%
1,579

14
%
13
%
Centers 21 - 25
$
321

96
%
1,571

14
%
12
%
Centers 26 - 30
$
295

97
%
979

9
%
6
%
Centers 31 - 36
$
263

94
%
1,353

12
%
7
%
 
 
 
 
 
 
 
 
 
 Cumulative
 Cumulative
 Cumulative
 Cumulative
 Cumulative
 
 
 12 Months
 Period End
 Sq Ft
% of
% of Portfolio
 Ranking (2)
 SPSF
 Occupancy %
 (in thousands)
 Square Feet
 NOI (3)
Consolidated Centers
 
 
 
 
 
Centers 1 - 5
$
542

97
%
2,181

19
%
25
%
Centers 1 - 10
$
495

98
%
3,910

34
%
44
%
Centers 1 - 15
$
464

98
%
5,864

52
%
62
%
Centers 1 - 20
$
440

98
%
7,442

66
%
75
%
Centers 1 - 25
$
419

97
%
9,014

79
%
87
%
Centers 1 - 30
$
407

97
%
9,993

88
%
93
%
Centers 1 - 36
$
390

97
%
11,345

100
%
100
%
 
 





Unconsolidated centers (4)
$
409

99
%
1,102

n/a

n/a

 
 
 
 
 
 
 
(1)
Sales are based on reports by retailers leasing outlet center stores for the trailing 12 months for tenants which have occupied such stores for a minimum of 12 months. Sales per square foot are based on all tenants which report sales, regardless of the size of their stores. Centers are ranked by sales per square foot as of June 30, 2015.
 
 
 
 
 
 
 
(2)
Outlet centers included in each ranking group (in alphabetical order) are as follows :
 
Centers 1 - 5: Barstow, CA; Deer Park, NY; Nags Head, NC; Riverhead, NY; Sevierville, TN
 
Centers 6 - 10: Branson, MO; Hilton Head I, SC; Lancaster, PA; Myrtle Beach 17, SC; Rehoboth Beach, DE
 
Centers 11 - 15: Atlantic City, NJ; Charleston, SC; Locust Grove, GA; Mebane, NC; San Marcos, TX
 
Centers 16 - 20: Gonzales, LA; Hershey, PA; Howell, MI; Park City, UT; Pittsburgh, PA
 
 
Centers 21 - 25: Commerce II, GA; Foley, AL; Hilton Head II, SC; Jeffersonville, OH; Kittery II, ME
 
Centers 26 - 30: Blowing Rock, NC; Kittery I, ME; Myrtle Beach 501, SC; Ocean City, MD; Sanibel, FL
 
Centers 31 - 36: Terrell, TX; Tilton, NH; Tuscola; IL; West Branch, MI; Westbrook, CT; Williamsburg, IA
 
Excludes outlet centers not open for 12 full calendar months.
 
 
 
 
 
 
 
 
 
(3)
% of Portfolio NOI is based on the company’s forecast of 2015 property level net operating income which is defined as total operating revenues less property operating expenses and excludes termination fees and non-cash adjustments including straight-line rent, net above and below market rent amortization and gains or losses on sale of outparcels. The Company’s forecast is based on management’s estimates as of June 30, 2015 and may be considered a forward-looking statement which 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 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, 2014.
 
 
 
 
 
 
 
(4)
Includes domestic outlet centers open 12 full calendar months (Glendale, AZ; National Harbor, MD; Texas City, TX).

8
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2015


Major Tenants (1) 
Ten Largest Tenants as of June 30, 2015
Tenant
# of
Stores

 
GLA

 
% of
Total GLA

The Gap, Inc.
84

 
896,950

 
7.7
%
Ascena Retail Group, Inc.
86

 
506,254

 
4.3
%
PVH Corp.
84

 
444,056

 
3.8
%
Nike, Inc.
35

 
386,719

 
3.3
%
V. F. Corporation
44

 
376,541

 
3.2
%
Ralph Lauren Corporation
37

 
344,232

 
3.0
%
ANN Inc.
50

 
336,229

 
2.9
%
G-III Apparel Group, Ltd.
68

 
325,625

 
2.8
%
Adidas AG
43

 
287,422

 
2.5
%
Carter's, Inc.
60

 
275,811

 
2.4
%
Total of All Listed Above
591

 
4,179,839

 
35.9
%
(1)
Excludes unconsolidated outlet centers. See table on page 4.





9
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2015


Lease Expirations as of June 30, 2015

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


10
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2015


Leasing Activity (1) 
 
3/31/2015
 
6/30/2015
 
9/30/2015
 
12/31/2015
 
Year to Date
 
Prior
Year to
Date (2)
Re-tenanted Space (3):
 
 
 

 
 
 
 
 
 

 
 

Number of leases
71

 
27

 

 

 
98

 
109

Gross leasable area
269,289

 
99,409

 

 

 
368,698

 
375,013

New initial base rent per square foot
$
28.19

 
$
29.28

 

 

 
$
28.49

 
$
29.57

Prior expiring base rent per square foot
$
24.87

 
$
23.34

 

 

 
$
24.46

 
$
24.05

Percent increase
13.4
%
 
25.4
%
 

 

 
16.5
%
 
23.0
%
 
 
 
 
 
 
 
 
 
 
 
 
New straight line base rent per square foot
$
31.73

 
$
33.08

 

 

 
$
32.10

 
$
32.50

Prior straight line base rent per square foot
$
24.65

 
$
22.73

 

 

 
$
24.13

 
$
23.80

Percent increase
28.8
%
 
45.5
%
 

 

 
33.0
%
 
36.6
%
 
 
 
 
 
 
 
 
 
 
 
 
Renewed Space:
 
 
 
 
 
 
 
 
 
 
 
Number of leases
181

 
44

 

 

 
225

 
203

Gross leasable area
868,786

 
190,772

 

 

 
1,059,558

 
978,148

New initial base rent per square foot
$
24.68

 
$
26.07

 

 

 
$
24.93

 
$
22.33

Prior expiring base rent per square foot
$
22.07

 
$
22.46

 

 

 
$
22.14

 
$
20.18

Percent increase
11.8
%
 
16.1
%
 

 

 
12.6
%
 
10.6
%
 
 
 
 
 
 
 
 
 
 
 
 
New straight line base rent per square foot
$
26.28

 
$
27.24

 

 

 
$
26.46

 
$
23.30

Prior straight line base rent per square foot
$
21.45

 
$
21.84

 

 

 
$
21.52

 
$
19.72

Percent increase
22.5
%
 
24.7
%
 

 

 
22.9
%
 
18.1
%
 
 
 
 
 
 
 
 
 
 
 
 
Total Re-tenanted and Renewed Space (3):
 
 
 
 
 
 
 
 
 
 
 
Number of leases
252

 
71

 

 

 
323

 
312

Gross leasable area
1,138,075

 
290,181

 

 

 
1,428,256

 
1,353,161

New initial base rent per square foot
$
25.51

 
$
27.17

 

 

 
$
25.85

 
$
24.34

Prior expiring base rent per square foot
$
22.73

 
$
22.76

 

 

 
$
22.74

 
$
21.25

Percent increase
12.2
%
 
19.4
%
 

 

 
13.7
%
 
14.5
%
 
 
 
 
 
 
 
 
 
 
 
 
New straight line base rent per square foot
$
27.57

 
$
29.24

 

 

 
$
27.92

 
$
25.85

Prior straight line base rent per square foot
$
22.21

 
$
22.15

 

 

 
$
22.19

 
$
20.85

Percent increase
24.1
%
 
32.0
%
 

 

 
25.8
%
 
24.0
%
(1)
Excludes unconsolidated outlet centers. See table on page 4.
(2)
Excludes the Lincoln City, Oregon outlet center which was sold in December 2014.
(3)
Includes two magnet tenant leases executed during the first quarter of 2015 totaling 30,000 square feet. Excluding these two leases, which represent 8% of the total square feet re-tenanted as of June 30, 2015, the year to date leasing statistics for 2015 would have been as follows:
a.
Re-tenanted space: new initial base rent of $29.57 psf, an 20.5% increase over prior expiring initial base rent of $24.53 psf.
b.
Re-tenanted space: new straight line rent of $33.38 psf, a 36.9% increase over prior straight line rent of $24.39 psf.
c.
Total re-tenanted and renewed space: new initial base rent of $26.05 psf, a 14.7% increase over prior expiring initial base rent of $22.72 psf.
d.
Total re-tenanted and renewed space: new straight line rent of $28.13 psf, a 26.6% increase over prior straight line rent of $22.21 psf.

11
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2015

Consolidated Balance Sheets (dollars in thousands)
 
6/30/2015
 
3/31/2015
 
12/31/2014
 
9/30/2014
 
6/30/2014
ASSETS
 
 
 
 
 
 
 
 
 
Rental property
 
 
 
 
 
 
 
 
 
Land
$
217,994

 
$
217,994

 
$
217,994

 
$
230,415

 
$
230,415

Buildings, improvements and fixtures
2,078,946

 
1,950,092

 
1,947,083

 
2,043,583

 
2,029,321

Construction in progress
95,167

 
154,328

 
98,526

 
75,000

 
37,553

 
2,392,107

 
2,322,414

 
2,263,603

 
2,348,998

 
2,297,289

Accumulated depreciation
(699,836
)
 
(680,739
)
 
(662,236
)
 
(708,515
)
 
(691,339
)
Total rental property, net
1,692,271

 
1,641,675

 
1,601,367

 
1,640,483

 
1,605,950

Cash and cash equivalents
16,949

 
14,661

 
16,875

 
10,824

 
13,240

Rental property held for sale (a)
46,862

 
46,530

 
46,005

 
—

 
—

Investments in unconsolidated joint ventures
212,939

 
205,083

 
208,050

 
249,659

 
210,131

Deferred lease costs and other intangibles, net
133,909

 
137,478

 
140,883

 
146,642

 
151,738

Deferred debt origination costs, net
11,417

 
11,606

 
12,126

 
9,794

 
9,652

Prepaids and other assets
74,393

 
71,924

 
72,354

 
82,715

 
77,905

Total assets
$
2,188,740

 
$
2,128,957

 
$
2,097,660

 
$
2,140,117

 
$
2,068,616

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
Debt
 
 
 
 
 
 
 
 
 
Senior, unsecured notes, net of discounts
$
793,910

 
$
793,741

 
$
793,574

 
$
794,729

 
$
794,567

Unsecured term loans, net of discounts
267,338

 
267,298

 
267,259

 
267,219

 
267,180

Mortgages payable, including premiums
276,942

 
285,068

 
271,361

 
247,240

 
248,336

Unsecured lines of credit
176,300

 
115,700

 
111,000

 
139,800

 
91,200

Total debt
1,514,490

 
1,461,807

 
1,443,194

 
1,448,988

 
1,401,283

Accounts payable and accruals
83,787

 
80,835

 
69,558

 
79,227

 
54,763

Deferred financing obligation
28,388

 
28,388

 
28,388

 
28,388

 
28,388

Other liabilities
30,639

 
31,076

 
32,634

 
29,300

 
30,024

Total liabilities
1,657,304

 
1,602,106

 
1,573,774

 
1,585,903

 
1,514,458

Commitments and contingencies
—

 
—

 
—

 
—

 
—

Equity
 
 
 
 
 
 
 
 
 
Tanger Factory Outlet Centers, Inc.
 
 
 
 
 
 
 
 
 
Common shares
958

 
958

 
955

 
959

 
959

Paid in capital
798,587

 
794,652

 
791,566

 
801,363

 
797,286

Accumulated distributions in excess of net income
(272,948
)
 
(270,124
)
 
(281,679
)
 
(276,218
)
 
(276,224
)
Accumulated other comprehensive loss
(22,470
)
 
(25,755
)
 
(14,023
)
 
(7,382
)
 
(3,265
)
  Equity attributable to Tanger Factory Outlet
  Centers, Inc.
504,127

 
499,731

 
496,819

 
518,722

 
518,756

Equity attributable to noncontrolling interests
 
 
 
 
 
 
 
 
 
Noncontrolling interests in Operating Partnership
26,712

 
26,481

 
26,417

 
27,595

 
27,602

Noncontrolling interest in other consolidated partnerships
597

 
639

 
650

 
7,897

 
7,800

Total equity
531,436

 
526,851

 
523,886

 
554,214

 
554,158

Total liabilities and equity
$
2,188,740

 
$
2,128,957

 
$
2,097,660

 
$
2,140,117

 
$
2,068,616

a.
Subsequent to June 30, 2015, the Company concluded that the sale of these assets was no longer probable.

12
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2015


Consolidated Statements of Operations (dollars and shares in thousands)
 
 
 
Three Months Ended
 
YTD
 
6/30/15
 
3/31/15
 
12/31/14
 
9/30/14
 
6/30/14
 
 
6/30/15
 
6/30/14
REVENUES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Base rentals
$
72,329

 
$
67,629

 
$
69,732

 
$
69,612

 
$
68,160

 
 
$
139,958

 
$
135,136

Percentage rentals
2,042

 
2,229

 
3,675

 
2,634

 
1,915

 
 
4,271

 
3,998

Expense reimbursements
29,909

 
33,364

 
32,075

 
29,463

 
29,452

 
 
63,273

 
60,994

Management, leasing and other services
1,727

 
1,283

 
1,043

 
1,225

 
758

 
 
3,010

 
1,324

Other income
1,729

 
1,421

 
1,849

 
2,255

 
1,927

 
 
3,150

 
3,543

Total revenues
107,736

 
105,926

 
108,374

 
105,189

 
102,212

 
 
213,662

 
204,995

EXPENSES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property operating
34,958

 
37,732

 
34,968

 
32,798

 
33,629

 
 
72,690

 
69,656

General and administrative
11,612

 
11,305

 
11,652

 
11,334

 
10,761

 
 
22,917

 
21,483

Acquisition costs
—

 
—

 
—

 
—

 
—

 
 
—

 
7

Abandoned pre-development costs
—

 
—

 
769

 
—

 
—

 
 
—

 
1,596

Depreciation and amortization
24,272

 
23,989

 
25,398

 
25,774

 
25,197

 
 
48,261

 
51,260

Total expenses
70,842

 
73,026

 
72,787

 
69,906

 
69,587

 
 
143,868

 
144,002

Operating income
36,894

 
32,900

 
35,587

 
35,283

 
32,625

 
 
69,794

 
60,993

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OTHER INCOME/(EXPENSE)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
(13,088
)
 
(13,089
)
 
(14,527
)
 
(13,902
)
 
(14,582
)
 
 
(26,177
)
 
(29,502
)
Loss on early extinguishment of debt
—

 
—

 
(13,140
)
 
—

 
—

 
 
—

 
—

Gain on sale of assets and interests in unconsolidated entities
—

 
13,726

 
7,513

 
—

 
—

 
 
13,726

 
—

Other nonoperating income (expense)
(493
)
 
306

 
234

 
437

 
64

 
 
(187
)
 
123

Income before equity in earnings of unconsolidated joint ventures
23,313

 
33,843

 
15,667

 
21,818

 
18,107

 
 
57,156

 
31,614

Equity in earnings of unconsolidated joint ventures
2,046

 
2,543

 
2,853

 
2,479

 
1,788

 
 
4,589

 
3,721

Net income
25,359

 
36,386

 
18,520

 
24,297

 
19,895

 
 
61,745

 
35,335

Noncontrolling interests in Operating Partnership
(1,313
)
 
(1,855
)
 
(954
)
 
(1,252
)
 
(1,028
)
 
 
(3,168
)
 
(1,831
)
Noncontrolling interests in other consolidated partnerships
435

 
(19
)
 
(24
)
 
(42
)
 
(17
)
 
 
416

 
(38
)
Net income attributable to Tanger Factory Outlet Centers, Inc.
24,481

 
34,512

 
17,542

 
23,003

 
18,850

 
 
58,993

 
33,466

Allocation to participating securities
(308
)
 
(408
)
 
(481
)
 
(481
)
 
(481
)
 
 
(716
)
 
(910
)
Net income available to common shareholders
$
24,173

 
$
34,104

 
$
17,061

 
$
22,522

 
$
18,369

 
 
$
58,277

 
$
32,556

Basic earnings per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
0.26

 
$
0.36

 
$
0.18

 
$
0.24

 
$
0.20

 
 
$
0.62

 
$
0.35

Diluted earnings per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
0.26

 
$
0.36

 
$
0.18

 
$
0.24

 
$
0.20

 
 
$
0.62

 
$
0.35

Weighted average common shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
94,741

 
94,536

 
93,851

 
93,834

 
93,800

 
 
94,639

 
93,690

Diluted
94,794

 
94,697

 
93,922

 
93,902

 
93,874

 
 
94,705

 
93,762


13
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2015


FFO and FAD Analysis (dollars and shares in thousands)
 
 
 
Three Months Ended
 
YTD
 
6/30/15
 
3/31/15
 
12/31/14
 
9/30/14
 
6/30/14
 
 
6/30/15
 
6/30/14
Funds from operations:
 
 
 
 
 
 
 
 
 
 
 
 

 
 

Net income
$
25,359

 
$
36,386

 
$
18,520

 
$
24,297

 
$
19,895

 
 
$
61,745

 
$
35,335

Adjusted for -
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization of real estate assets - consolidated properties
23,919

 
23,637

 
25,052

 
25,425

 
24,782

 
 
47,556

 
50,484

Depreciation and amortization of real estate assets - unconsolidated joint ventures
5,038

 
4,076

 
4,164

 
3,040

 
2,403

 
 
9,114

 
5,008

Gain on sale of assets and interests in unconsolidated entities
—

 
(13,726
)
 
(7,513
)
 
—

 
—

 
 
(13,726
)
 
—

Funds from operations
54,316

 
50,373

 
40,223

 
52,762

 
47,080

 
 
104,689

 
90,827

FFO attributable to noncontrolling interests in other consolidated partnerships
412

 
(42
)
 
(46
)
 
(62
)
 
(37
)
 
 
370

 
(77
)
Allocation to participating securities
(583
)
 
(560
)
 
(795
)
 
(1,045
)
 
(949
)
 
 
(1,143
)
 
(1,813
)
Funds from operations available to
    common shareholders
$
54,145

 
$
49,771

 
$
39,382

 
$
51,655

 
$
46,094

 
 
$
103,916

 
$
88,937

Funds from operations per share
$
0.54

 
$
0.50

 
$
0.40

 
$
0.52

 
$
0.47

 
 
$
1.04

 
$
0.90

Funds available for distribution to common shareholders:
 
 

 
 

 
 
 
 
 

Funds from operations
$
54,145

 
$
49,771

 
$
39,382

 
$
51,655

 
$
46,094

 
 
$
103,916

 
$
88,937

Adjusted for -
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate depreciation excluded above
353

 
352

 
346

 
349

 
415

 
 
705

 
776

Amortization of finance costs
603

 
599

 
728

 
547

 
554

 
 
1,202

 
1,107

Amortization of net debt discount (premium)
(88
)
 
14

 
(328
)
 
(92
)
 
(92
)
 
 
(74
)
 
(181
)
Amortization of share-based compensation
3,953

 
3,613

 
3,817

 
3,813

 
3,772

 
 
7,566

 
7,121

Straight line rent adjustment
(1,549
)
 
(1,269
)
 
(1,047
)
 
(1,666
)
 
(1,522
)
 
 
(2,818
)
 
(3,361
)
Market rent adjustment
383

 
916

 
961

 
734

 
845

 
 
1,299

 
1,514

2nd generation tenant allowances
(4,128
)
 
(956
)
 
(6,718
)
 
(2,570
)
 
(2,876
)
 
 
(5,084
)
 
(6,254
)
Capital improvements
(4,558
)
 
(2,738
)
 
(7,668
)
 
(12,701
)
 
(12,341
)
 
 
(7,296
)
 
(16,550
)
Adjustments from unconsolidated joint ventures
(399
)
 
(479
)
 
(940
)
 
(286
)
 
(39
)
 
 
(878
)
 
(257
)
Funds available for distribution
$
48,715

 
$
49,823

 
$
28,533

 
$
39,783

 
$
34,810

 
 
$
98,538

 
$
72,852

Funds available for distribution
   per share
$
0.49

 
$
0.50

 
$
0.29

 
$
0.40

 
$
0.35

 
 
$
0.99

 
$
0.74

Dividends paid per share
$
0.285

 
$
0.240

 
$
0.240

 
$
0.240

 
$
0.240

 
 
$
0.525

 
$
0.465

FFO payout ratio
53
%
 
48
%
 
60
%
 
46
%
 
51
%
 
 
50
%
 
52
%
FAD payout ratio
58
%
 
48
%
 
83
%
 
60
%
 
69
%
 
 
53
%
 
63
%
Diluted weighted average common shs.
99,873

 
99,775

 
99,023

 
99,003

 
98,989

 
 
99,783

 
98,890


14
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2015


Unconsolidated Joint Venture Information

The following table details certain information as of June 30, 2015, except for Net Operating Income ("NOI") which is for the six months ended June 30, 2015, 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 (1)
 
Charlotte, NC
 
50.0
%
 
397,837

 
$
44.4

 
$
3.4

 
$
45.0

 
 
 
 
 
 
 
 
 
 
 
 
 
Columbus (2)
 
Columbus, OH
 
50.0
%
 
—

 
8.3

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Galveston/Houston
 
Texas City, TX
 
50.0
%
 
352,705

 
32.4

 
2.2

 
32.5

 
 
 
 
 
 
 
 
 
 
 
 
 
National Harbor
 
National Harbor, MD
 
50.0
%
 
338,786

 
52.3

 
2.7

 
41.9

 
 
 
 
 
 
 
 
 
 
 
 
 
RioCan Canada (3)
 
Various
 
50.0
%
 
870,187

 
150.5

 
3.2

 
7.2

 
 
 
 
 
 
 
 
 
 
 
 
 
Savannah (4) (5)
 
Savannah, GA
 
50.0
%
 
377,301

 
97.4

 
1.3

 
35.0

 
 
 
 
 
 
 
 
 
 
 
 
 
Westgate
 
Glendale, AZ
 
58.0
%
 
410,664

 
49.8

 
2.8

 
36.0

 
 
 
 
 
 
 
 
 
 
 
 
 
Wisconsin Dells (6)
 
Wisconsin Dells, WI
 
50.0
%
 
N/A

 
—

 
0.3

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
$
435.1

 
$
15.9

 
$
197.6

(1)
Center opened on July 31, 2014.
(2)
Center is currently under construction.
(3)
Includes a 161,449 square foot center in Bromont, Quebec, a 308,803 square foot center in Cookstown, Ontario, a 284,218 square foot center in Ottawa, Ontario (which opened on October 17, 2014), a 115,717 square foot center in Saint-Sauveur, Quebec, as well as due diligence costs for additional potential sites in Canada.
(4)
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 Ownership column, which states our legal interest in this venture. Our 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.
(5)
Center opened on April 16, 2015.
(6)
In February 2015, we closed on the sale of our equity interest in the joint venture in Wisconsin Dells.








15
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2015


Non-GAAP Pro Rata Balance Sheet and Income Statement
The following pro rata information is not, and is not intended to be, a presentation in accordance with GAAP. The pro rata balance sheet and income statement data reflect our proportionate economic ownership of each asset in our portfolio that we do not wholly own. These assets may be found in the table above entitled, “Unconsolidated Joint Venture Information.” The amounts shown in the column labeled “Consolidated” were prepared on a basis consistent with the Company’s consolidated financial statements as filed with the SEC on the most recent Form 10-Q or 10-K, as applicable. The amounts in the column labeled “Pro Rata Portion Unconsolidated Joint Ventures” were derived on a property-by-property basis by applying to each financial statement line item the ownership percentage interest used to arrive at our share of net income or loss during the period when applying the equity method of accounting. A similar calculation was performed for the amounts in the column labeled “Pro Rata Portion Noncontrolling interests.”
We do not control the unconsolidated joint ventures and the presentations of the assets and liabilities and revenues and expenses do not represent our legal claim to such items. The operating agreements of the unconsolidated joint ventures generally provide that partners may receive cash distributions (1) quarterly, to the extent there is available cash from operations, (2) upon a capital event, such as a refinancing or sale or (3) upon liquidation of the venture. The amount of cash each partner receives is based upon specific provisions of each operating agreement and vary depending on factors including the amount of capital contributed by each partner and whether any contributions are entitled to priority distributions. Upon liquidation of the joint venture and after all liabilities, priority distributions and initial equity contributions have been repaid, the partners generally would be entitled to any residual cash remaining based on the legal ownership percentage shown in the table above entitled “Unconsolidated Joint Venture Information”.

We provide pro rata balance sheet and income statement information because we believe it assists investors and analysts in estimating our economic interest in our unconsolidated joint ventures when read in conjunction with the Company’s reported results under GAAP. The presentation of pro rata financial statements has limitations as an analytical tool. Some of these limitations include:

•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.
Because of these limitations, the pro rata balance sheet and income statement should not be considered in isolation or as a substitute for our financial statements as reported under GAAP, We compensate for these limitations by relying primarily on our GAAP results and using the pro rata balance sheet and income statement only supplementally.


16
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2015


Non-GAAP Pro Rata Balance Sheet as of June 30, 2015 (dollars in thousands)
 
 
 
Non-GAAP Pro Rata Adjustments
 
 
 
Consolidated
 
Pro Rata Portion Noncontrolling Interests
 
Pro Rata Portion Unconsolidated Joint Ventures
 
Non-GAAP
Pro Rata Balance Sheet
ASSETS
 
 
 
 
 
 
 
Rental property
 
 
 
 
 
 
 
Land
$
217,994

 
$
—

 
$
57,044

 
$
275,038

Buildings, improvements and fixtures
2,078,946

 
(160
)
 
342,932

 
2,421,718

Construction in progress
95,167

 
—

 
13,815

 
108,982

 
2,392,107

 
(160
)
 
413,791

 
2,805,738

Accumulated depreciation
(699,836
)
 
—

 
(24,092
)
 
(723,928
)
Total rental property, net
1,692,271

 
(160
)
 
389,699

 
2,081,810

Cash and cash equivalents
16,949

 
—

 
25,041

 
41,990

Rental property held for sale
46,862

 
—

 
—

 
46,862

Investments in unconsolidated joint ventures
212,939

 
19

 
(212,958
)
 
—

Deferred lease costs and other intangibles, net
133,909

 
—

 
10,926

 
144,835

Deferred debt origination costs, net
11,417

 
—

 
2,783

 
14,200

Prepaids and other assets
74,393

 
—

 
4,000

 
78,393

Total assets
$
2,188,740

 
$
(141
)
 
$
219,491

 
$
2,408,090

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
Debt
 
 
 
 
 
 
 
Senior, unsecured notes, net of discounts
$
793,910

 
$
—

 
$
—

 
$
793,910

Unsecured term loans, net of discounts
267,338

 
—

 
—

 
267,338

Mortgages payable, including premiums
276,942

 
—

 
197,598

 
474,540

Unsecured lines of credit
176,300

 
—

 
—

 
176,300

Total debt
1,514,490

 
—

 
197,598

 
1,712,088

Accounts payable and accruals
83,787

 
—

 
22,929

 
106,716

Deferred financing obligation
28,388

 
—

 
—

 
28,388

Other liabilities
30,639

 
—

 
(1,036
)
 
29,603

Total liabilities
1,657,304

 
—

 
219,491

 
1,876,795

Commitments and contingencies
—

 
—

 
—

 
—

Equity
 
 
 
 
 
 
 
Tanger Factory Outlet Centers, Inc.
 
 
 
 
 
 
 
Common shares
958

 
—

 
—

 
958

Paid in capital
798,587

 
—

 
—

 
798,587

Accumulated distributions in excess of net income
(272,948
)
 
456

 
—

 
(272,492
)
Accumulated other comprehensive income
(22,470
)
 
—

 
—

 
(22,470
)
Equity attributable to Tanger Factory Outlet Centers, Inc.
504,127

 
456

 
—

 
504,583

Equity attributable to noncontrolling interests
 
 
 
 
 
 
 
Noncontrolling interests in Operating Partnership
26,712

 
—

 
—

 
26,712

Noncontrolling interest in other consolidated partnerships
597

 
(597
)
 
—

 
—

Total equity
531,436

 
(141
)
 
—

 
531,295

Total liabilities and equity
$
2,188,740

 
$
(141
)
 
$
219,491

 
$
2,408,090


17
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2015


Non-GAAP Pro Rata Statement of Operations year to date June 30, 2015 (dollars in thousands)
 
 
 
Non-GAAP Pro Rata Adjustments
 
 
 
Consolidated
 
Pro Rata Portion Noncontrolling Interests
 
Pro Rata Portion Unconsolidated Joint Ventures
 
Non-GAAP
Pro Rata Statement of Operations
REVENUES
 
 
 
 
 
 
 
Base rentals
$
139,958

 
$
(6
)
 
$
17,236

 
$
157,188

Percentage rentals
4,271

 
—

 
768

 
5,039

Expense reimbursements
63,273

 
(3
)
 
9,127

 
72,397

Management, leasing and other services
3,010

 
—

 
—

 
3,010

Other income
3,150

 
—

 
656

 
3,806

Total revenues
213,662

 
(9
)
 
27,787

 
241,440

EXPENSES
 
 
 
 
 
 
 
Property operating
72,690

 
(2
)
 
11,687

 
84,375

General and administrative
22,917

 
—

 
160

 
23,077

Acquisition costs
—

 
—

 
—

 
—

Abandoned pre-development costs
—

 
—

 
—

 
—

Depreciation and amortization
48,261

 
(3
)
 
9,073

 
57,331

Total expenses
143,868

 
(5
)
 
20,920

 
164,783

Operating income
69,794

 
(4
)
 
6,867

 
76,657

 
 
 
 
 
 
 
 
OTHER INCOME/(EXPENSE)
 
 
 
 
 
 
 
Interest expense
(26,177
)
 
3

 
(2,324
)
 
(28,498
)
Gain on sale of assets and interests in unconsolidated entities
13,726

 
—

 


 
13,726

Other nonoperating income (expense)
(187
)
 
456

 
7

 
276

Income before equity in earnings of unconsolidated joint ventures
57,156

 
455

 
4,550

 
62,161

Equity in earnings of unconsolidated joint ventures
4,589

 
(39
)
 
(4,550
)
 
—

Net income
61,745

 
416

 
—

 
62,161

Noncontrolling interests in Operating Partnership
(3,168
)
 
—

 
—

 
(3,168
)
Noncontrolling interests in other consolidated partnerships
416

 
(416
)
 
—

 
—

Net income attributable to Tanger Factory Outlet Centers, Inc.
58,993

 
—

 
—

 
58,993

Allocation to participating securities
(716
)
 
—

 
—

 
(716
)
Net income available to common shareholders
$
58,277

 
$
—

 
$
—

 
$
58,277



18
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2015


External Growth Pipeline Summary As of June 30, 2015
Project/Market
Projected
Opening
Approx Size in
Sq Ft (000s)
Est
Total Net Cost
(millions)
Cost to Date
(millions)
Tanger Ownership Percentage
Est Total Construction Loan (millions)
Amount Drawn
(millions)
Est Future Tanger Capital Requirement (millions)
Projected Stabilized Yield (1)
 
 
 
 
 
 
 
 
 
 
 
Under construction:
 
 
 
 
 
 
 
 
 
New Developments
 
 
 
 
 
 
 
 
 
Grand Rapids, MI
07/31/15
350

$
80.5

$
48.0

100%
$
—

$
—

$
32.5

11.5% - 12.5%
Southaven, MS (Memphis) (2,3)
Nov 2015
320

68.2

27.3

50%
60.0

—

—

9.5% - 10.5%
Columbus, OH (4)
2Q16
355

94.9

13.9

50%
—

—

40.5

10.0% - 11.0%
Total New Developments
 
1,025

$
243.6

$
89.2

 
$
60.0

$
—

$
73.0

10.9%
 
 
 
 
 
 
 
 
 
 
Expansions -
 
 
 
 
 
 
 
 
 
None
 
 
 
 
 
 
 
 
 
Total Expansions
 
—

$
—

$
—

 
$
—

$
—

$
—

—%
 
 
 
 
 
 
 
 
 
 
Total Under Construction
 
1,025

$
243.6

$
89.2

 
$
60.0

$
—

$
73.0

10.9%
 
 
 
 
 
 
 
 
 
 
Pre-development:
 
 
 
 
 
 
 
 
 
None
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
While actual yields for individual projects may vary, the company's current targeted stabilized yield on estimated total net cost for development projects is 9% - 11% in the United States and 7% - 9% in Canada. Weighted average projected stabilized yields for projects under construction are calculated using the midpoint of the projected stabilized yield disclosed for each project, or the midpoint of the company's targeted stabilized yield for projects labeled TBD.
(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 Ownership Percentage 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 the gain or losses of asset sales.
(3)
Joint venture is consolidated for financial reporting purposes.
(4)
Partners currently plan to initially fund the project with equity, but may secure mortgage financing upon stabilization.
The company's estimates, projections and judgments with respect to projected opening date, approximate size, estimated total net cost, Tanger ownership percentage, estimated total construction loan, estimated future Tanger capital requirement and projected stabilized yield for new development and expansion projects are subject to adjustment prior to and during the development process. Estimated total net cost shown net of outparcel sales and public financing. 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 Form10-K and Form 10-Q for a discussion of these risks.


19
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2015


Debt Outstanding Summary (dollars in thousands)
As of June 30, 2015
 
Principal
Balance
 
Stated
Interest Rate
 
Effective Interest Rate
 
Maturity
Date
Unsecured debt:
 

 
 
 
 
 
 
Unsecured lines of credit (1)
$
176,300

 
LIBOR + 1.00%

 
 
 
10/24/2017
2020 Senior unsecured notes
300,000

 
6.125%

 
6.219%
 
6/1/2020
2023 Senior unsecured notes
250,000

 
3.875%

 
4.076%
 
12/1/2023
2024 Senior unsecured notes
250,000

 
3.75
%
 
3.819%
 
12/1/2024
Unsecured term loan (2)
250,000

 
LIBOR + 1.05%

 
 
 
2/23/2019
Unsecured term note
7,500

 
LIBOR + 1.30%

 
 
 
8/28/2017
Unsecured note
10,000

 
1.50%

 
3.153%
 
6/30/2016
Net debt discounts
(6,252
)
 
 

 
 
 
 
Total unsecured debt
$
1,237,548

 
 

 
 
 
 
Secured mortgage debt:
 
 
 
 
 
 
 
Atlantic City, NJ (including premium of $3,494) (3)
$
48,167

 
5.14% - 7.65%

 
5.05%
 
11/15/2021 - 12/8/2026
Deer Park, NY (net of discount of $1,003) (4)
148,997

 
LIBOR + 1.50%

 
2.80%
 
8/30/2018
Foxwoods, CT (5)
62,092

 
LIBOR + 1.65%

 
 
 
12/5/2017
Ocean City, MD (including premium of $51) (3), (6)
17,686

 
5.24%

 
4.68%
 
1/6/2016
Southhaven, MS (7)
—

 
LIBOR + 1.75%

 
 
 
4/29/2018
Total secured mortgage debt
$
276,942

 
 
 
 
 
 
Tanger's share of unconsolidated JV debt:
 

 
 

 
 
 
 
Charlotte (8)
$
45,000

 
LIBOR + 1.45%

 
 
 
11/24/2018
Galveston/Houston (9)
32,500

 
LIBOR + 1.50%

 
 
 
7/01/2017
National Harbor (10)
41,850

 
LIBOR + 1.65%

 
 
 
11/13/19
RioCan Canada (including premium of $380) (11)
7,220

 
5.10% - 5.75%

 
3.93% - 4.18%
 
6/22/2015 - 5/10/2020
Savannah (12)
35,068

 
LIBOR + 1.65%

 
 
 
5/21/2017
Westgate (13)
35,960

 
LIBOR + 1.75%

 
 
 
6/27/2017
Total Tanger's share of unconsolidated JV debt
$
197,598

 
 

 
 
 
 
(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. Both lines expire on October 24, 2017 with the option to further extend the maturity for one additional year. Facility fees of 15 basis points annually are charged in arrears based on the full amount of the commitment.

(2)
On July 2, 2014, the credit agreement for the unsecured term loan due February 23, 2019 was amended and restated to change the interest rate from LIBOR + 1.60% to LIBOR + 1.05%.

(3)
Represents mortgages assumed in the acquisitions of various properties.

(4)
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 five 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% through August 14, 2018.


20
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2015


(5)
In December 2014, the joint venture closed on a mortgage loan with the ability to borrow up to $70.3 million. The loan initially matures on December 5, 2017, with two one -year extension options.

(6)
In July 2015, we repaid the mortgage associated with our Ocean City, Maryland outlet center, which was assumed as part of the acquisition of the property in 2011.

(7)
In April 2015, the joint venture closed on a mortgage loan with the ability to borrow up to $60.0 million. The loan initially matures on April 29, 2018, with one two-year extension option.

(8)
In November 2014, the joint venture closed on a mortgage loan of $90.0 million. The loan initially matures on November 24, 2018, with one one -year extension option.

(9)
In July 2013, the joint venture closed on a mortgage loan with the ability to borrow up to $70.0 million with a maturity date of July 1, 2017 and the option to extend the maturity for one additional year. As of June 30, 2015, the balance on the loan was $65.0 million. The additional $5.0 million is available for future expansion.

(10)
In November 2014, the joint venture amended the initial construction loan to increase the amount available to borrow from $62.0 million to $87.0 million and extended the maturity date until November 13, 2019. As of June 30, 2015, the balance on the loan was $83.7 million. The additional $3.3 million is available for future expansion.

(11)
Represents the mortgages assumed related to the acquisition of the Saint-Sauveur, Quebec property by the RioCan co-owners in November 2012. The mortgages have a principal balance of $13.7 million and carry a weighted average interest rate of 5.7% and mature in 2015 and 2020, respectively.
 
(12)
In May 2014, the joint venture closed on a construction loan with the ability to borrow up to $97.7 million, of which $4.7 million will be available for future expansion. The construction loan has a maturity date of May 21, 2017, with two options to extend the maturity date each for one additional year. As of June 30, 2015, the balance on the loan was $70.1 million.

(13)
In May 2014, the joint venture amended and restated the initial construction loan to increase the amount available to borrow from $48.3 million to $62.0 million. The amended and restated loan had a maturity date of June 27, 2015. On April 1, 2015, the joint venture exercised the option to extend the maturity date of the loan to June 27, 2017. As of June 30, 2015, the balance on the loan was $62.0 million.







21
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2015


Future Scheduled Principal Payments (dollars in thousands)
As of June 30, 2015
Year
Tanger
Consolidated
Payments
 
Tanger's Share
of Unconsolidated
JV Payments
 
Total
Scheduled
Payments
2015
$
1,556

 
$
821

 
$
2,377

2016
30,283

 
275

 
30,558

2017 (1)
248,900

 
103,819

 
352,719

2018
153,183

 
45,308

 
198,491

2019
253,369

 
42,176

 
295,545

2020
303,566

 
4,819

 
308,385

2021
5,793

 
—

 
5,793

2022
4,436

 
—

 
4,436

2023
254,768

 
—

 
254,768

2024
255,140

 
—

 
255,140

2025 & thereafter
7,206

 
—

 
7,206

 
$
1,518,200

 
$
197,218

 
$
1,715,418

Net Discount on Debt
(3,710
)
 
380

 
(3,330
)
 
$
1,514,490

 
$
197,598

 
$
1,712,088

Senior Unsecured Notes Financial Covenants (2) 
As of June 30, 2015
 
Required
 
Actual
 
Compliance
Total Consolidated Debt to Adjusted Total Assets
<60%
 
50
%
 
Yes
Total Secured Debt to Adjusted Total Assets
<40%
 
9
%
 
Yes
Total Unencumbered Assets to Unsecured Debt
>150%
 
172
%
 
Yes
Consolidated Income Available for Debt Service to Annual Debt Service Charge
>1.5
 
4.68

 
Yes
(1)
Includes balances of $176.3 million outstanding under the company's unsecured lines of credit.
(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.


22
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2015


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:
tangerir@tangeroutlet.com
Mail:
Tanger Factory Outlet Centers, Inc.
 
3200 Northline Avenue
 
Suite 360
 
Greensboro, NC 27408


23
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2015

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