TANGER FACTORY OUTLET CENTERS, INC - FORM 8-K - EX-99.2 - EXHIBIT 99.2 SUPPLEMENTAL - July 30, 2013

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


1
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2013


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 6/30/2013


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 June 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 6/30/2013


Geographic Diversification

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

 
1,576,888

 
15
%
Pennsylvania
3

 
874,474

 
8
%
New York
1

 
729,734

 
7
%
Georgia
2

 
691,582

 
6
%
Texas
2

 
619,729

 
6
%
Delaware
1

 
568,975

 
5
%
Alabama
1

 
557,228

 
5
%
North Carolina
3

 
505,225

 
5
%
New Jersey
1

 
489,762

 
4
%
Michigan
2

 
437,222

 
4
%
Tennessee
1

 
417,963

 
4
%
Ohio
1

 
411,776

 
4
%
Louisiana
1

 
318,666

 
3
%
Missouri
1

 
302,922

 
3
%
Utah
1

 
298,391

 
3
%
Connecticut
1

 
289,898

 
3
%
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

 
198,875

 
2
%
California
1

 
171,300

 
2
%
Maine
2

 
82,286

 
1
%
Total
36

 
10,785,352

 
100
%
Unconsolidated Joint Venture Properties

# of Centers
 
GLA
 
Ownership %
Deer Park, NY
1

 
741,981

 
33.33
%
Texas City, TX
1

 
352,705

 
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
7

 
2,125,673

 
 

4
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2013


Property Summary - Occupancy at End of Each Period Shown

Consolidated properties
 
 
 
 
 
 
 
 
 
 
Location
Total GLA
6/30/13
 
% Occupied
6/30/13
 
% Occupied
3/31/13
 
% Occupied
12/31/12
 
% Occupied
9/30/12
 
% Occupied
6/30/12
Riverhead, NY
729,734

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

 
97
%
 
98
%
 
100
%
 
100
%
 
99
%
Foley, AL
557,228

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

 
94
%
 
94
%
 
96
%
 
96
%
 
97
%
San Marcos, TX
441,929

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

 
100
%
 
99
%
 
98
%
 
99
%
 
99
%
Sevierville, TN
417,963

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

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

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

 
100
%
 
100
%
 
100
%
 
100
%
 
99
%
Commerce II, GA
370,512

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

 
98
%
 
97
%
 
100
%
 
99
%
 
96
%
Howell, MI
324,652

 
100
%
 
98
%
 
96
%
 
96
%
 
94
%
Locust Grove, GA
321,070

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

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

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

 
100
%
 
100
%
 
100
%
 
99
%
 
97
%
Park City, UT
298,391

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

 
98
%
 
98
%
 
100
%
 
99
%
 
97
%
Williamsburg, IA
277,230

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

 
98
%
 
98
%
 
99
%
 
98
%
 
97
%
Lancaster, PA
254,002

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

 
95
%
 
94
%
 
91
%
 
91
%
 
90
%
Hershey, PA
247,500

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

 
100
%
 
100
%
 
100
%
 
100
%
 
99
%
Hilton Head II, SC
206,544

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

 
88
%
 
94
%
 
94
%
 
93
%
 
89
%
Ocean City, MD
198,875

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

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

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

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

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

 
99
%
 
99
%
 
99
%
 
97
%
 
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
10,785,352

 
98
%
 
98
%
 
99
%
 
99
%
 
98
%




5
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2013


Unconsolidated joint venture properties
 
 
 
 
 
 
 
 
 
 
Location
Total GLA
6/30/13
 
% Occupied
6/30/13
 
% Occupied
3/31/13
 
% Occupied
12/31/12
 
% Occupied
9/30/12

 
% Occupied
6/30/12

Deer Park, NY
741,981

 
94
%
 
92
%
 
93
%
 
92
%
 
91
%
Texas City, TX
352,705

 
97
%
 
97
%
 
97
%
 
N/A

 
N/A

Glendale, AZ
331,739

 
97
%
 
95
%
 
94
%
 
N/A

 
N/A

Wisconsin Dells, WI
265,086

 
100
%
 
100
%
 
98
%
 
98
%
 
99
%
Bromont, QC
162,543

 
92
%
 
89
%
 
89
%
 
N/A

 
N/A

Cookstown, ON
155,522

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

 
100
%
 
100
%
 
100
%
 
N/A

 
N/A






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



(1)
Excludes seven 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 6/30/2013


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

 
GLA

 
% of
Total GLA

The Gap, Inc.
80

 
853,525

 
7.9
%
Phillips-Van Heusen
127

 
666,350

 
6.2
%
Dress Barn, Inc.
88

 
515,334

 
4.8
%
Nike
35

 
376,940

 
3.5
%
VF Outlet, Inc.
42

 
375,082

 
3.5
%
Ann Taylor
45

 
308,480

 
2.8
%
Adidas
40

 
305,470

 
2.8
%
Polo Ralph Lauren
28

 
287,799

 
2.7
%
Carter's
59

 
276,641

 
2.6
%
Hanesbrands Direct, LLC
41

 
239,503

 
2.2
%
Total of All Listed Above
585

 
4,205,124

 
39.0
%
(1)
Excludes seven unconsolidated outlet centers. See table on page 4.





8
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2013


Lease Expirations as of June 30, 2013


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

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


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

 

 

 
118

 
92

Gross leasable area
293,535

 
92,258

 

 

 
385,793

 
318,630

New initial base rent per square foot
$
26.97

 
$
25.27

 

 

 
$
26.56

 
$
29.41

Prior expiring base rent per square foot
$
23.35

 
$
21.32

 

 

 
$
22.86

 
$
20.97

Percent increase
15.5
%
 
18.5
%
 

 

 
16.2
%
 
40.3
%
 
 
 
 
 
 
 
 
 
 
 
 
New straight line base rent per square foot
$
29.76

 
$
27.76

 

 

 
$
29.28

 
$
31.91

Prior straight line base rent per square foot
$
22.52

 
$
20.50

 

 

 
$
22.03

 
$
20.66

Percent increase
32.2
%
 
35.4
%
 

 

 
32.9
%
 
54.5
%
 
 
 
 
 
 
 
 
 
 
 
 
Renewed Space:
 
 
 
 
 
 
 
 
 
 
 
Number of leases
231

 
32

 

 

 
263

 
242

Gross leasable area
1,135,107

 
153,344

 

 

 
1,288,451

 
1,189,277

New initial base rent per square foot
$
22.37

 
$
21.85

 

 

 
$
22.31

 
$
21.02

Prior expiring base rent per square foot
$
19.99

 
$
19.49

 

 

 
$
19.93

 
$
19.18

Percent increase
11.9
%
 
12.1
%
 

 

 
11.9
%
 
9.6
%
 
 
 
 
 
 
 
 
 
 
 
 
New straight line base rent per square foot
$
23.17

 
$
22.70

 

 

 
$
23.12

 
$
21.74

Prior straight line base rent per square foot
$
19.64

 
$
18.54

 

 

 
$
19.51

 
$
18.96

Percent increase
18.0
%
 
22.4
%
 

 

 
18.5
%
 
14.7
%
 
 
 
 
 
 
 
 
 
 
 
 
Total Re-tenanted and Renewed Space:
 
 
 
 
 
 
 
 
 
 
 
Number of leases
321

 
60

 

 

 
381

 
334

Gross leasable area
1,428,642

 
245,602

 

 

 
1,674,244

 
1,507,907

New initial base rent per square foot
$
23.32

 
$
23.13

 

 

 
$
23.29

 
$
22.80

Prior expiring base rent per square foot
$
20.68

 
$
20.18

 

 

 
$
20.61

 
$
19.56

Percent increase
12.6
%
 
14.7
%
 

 

 
13.0
%
 
16.6
%
 
 
 
 
 
 
 
 
 
 
 
 
New straight line base rent per square foot
$
24.52

 
$
24.60

 

 

 
$
24.54

 
$
23.89

Prior straight line base rent per square foot
$
20.23

 
$
19.28

 

 

 
$
20.09

 
$
19.32

Percent increase
21.2
%
 
27.6
%
 

 

 
22.1
%
 
23.7
%
(1)
Excludes seven unconsolidated outlet centers. See table on page 4.

10
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2013


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

Land
$
148,003

 
$
148,002

 
$
148,002

 
$
148,002

 
$
148,002

Buildings, improvements and fixtures
1,821,404

 
1,802,160

 
1,796,042

 
1,793,963

 
1,787,050

Construction in progress
2,531

 
6,336

 
3,308

 
—

 
—

 
1,971,938

 
1,956,498

 
1,947,352

 
1,941,965

 
1,935,052

Accumulated depreciation
(618,644
)
 
(600,713
)
 
(582,859
)
 
(565,521
)
 
(547,167
)
Total rental property, net
1,353,294

 
1,355,785

 
1,364,493

 
1,376,444

 
1,387,885

Cash and cash equivalents
5,450

 
2,691

 
10,335

 
9,511

 
11,855

Investments in unconsolidated joint ventures
162,094

 
133,982

 
126,632

 
82,676

 
72,394

Deferred lease costs and other intangibles, net
94,192

 
97,328

 
101,040

 
104,496

 
109,850

Deferred debt origination costs, net
7,921

 
8,534

 
9,083

 
9,619

 
10,219

Prepaids and other assets
69,205

 
63,353

 
60,842

 
56,211

 
50,172

Total assets
$
1,692,156

 
$
1,661,673

 
$
1,672,425

 
$
1,638,957

 
$
1,642,375

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
Debt
 
 
 
 
 
 
 
 
 
Senior, unsecured notes, net of discounts
$
548,174

 
$
548,103

 
$
548,033

 
$
547,964

 
$
547,896

Unsecured term loans, net of discounts
259,528

 
259,491

 
259,453

 
259,416

 
259,380

Mortgages payable, including premiums
104,237

 
105,346

 
107,745

 
108,672

 
109,583

Unsecured lines of credit
213,100

 
174,917

 
178,306

 
136,769

 
141,224

Total debt
1,125,039

 
1,087,857

 
1,093,537

 
1,052,821

 
1,058,083

Construction trade payables
5,595

 
7,744

 
7,084

 
10,525

 
14,746

Accounts payable & accruals
34,806

 
37,957

 
41,149

 
46,087

 
38,011

Other liabilities
16,422

 
16,676

 
16,780

 
16,429

 
16,283

Total liabilities
1,181,862

 
1,150,234

 
1,158,550

 
1,125,862

 
1,127,123

Commitments and contingencies
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
Tanger Factory Outlet Centers, Inc.
 
 
 
 
 
 
 
 
 
Common shares
944

 
944

 
941

 
939

 
935

Paid in capital
771,265

 
768,702

 
766,056

 
762,821

 
758,381

Accumulated distributions in excess of net income
(294,237
)
 
(289,880
)
 
(285,588
)
 
(283,943
)
 
(279,657
)
Accumulated other comprehensive income
1,343

 
1,179

 
1,200

 
1,252

 
1,405

  Equity attributable to Tanger Factory Outlet
  Centers, Inc.
479,315

 
480,945

 
482,609

 
481,069

 
481,064

Equity attributable to noncontrolling interests
 
 
 
 
 
 
 
 
 
Noncontrolling interests in Operating Partnership
24,100

 
24,184

 
24,432

 
25,218

 
27,386

Noncontrolling interest in other consolidated partnerships
6,879

 
6,310

 
6,834

 
6,808

 
6,802

Total equity
510,294

 
511,439

 
513,875

 
513,095

 
515,252

Total liabilities and equity
$
1,692,156

 
$
1,661,673

 
$
1,672,425

 
$
1,638,957

 
$
1,642,375


11
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2013


Consolidated Statements of Operations (dollars and shares in thousands)
 
 
 
Three Months Ended
 
YTD
 
6/30/13
 
3/31/13
 
12/31/12
 
9/30/12
 
6/30/12
 
 
6/30/13
 
6/30/12
REVENUES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Base rentals
$
61,046

 
$
59,244

 
$
59,769

 
$
59,662

 
$
58,583

 
 
$
120,290

 
$
115,802

Percentage rentals
1,855

 
2,017

 
4,630

 
3,180

 
1,618

 
 
3,872

 
3,362

Expense reimbursements
25,824

 
25,306

 
27,333

 
24,908

 
25,196

 
 
51,130

 
48,869

Other income
2,290

 
2,122

 
3,204

 
2,733

 
1,938

 
 
4,412

 
3,545

Total revenues
91,015

 
88,689

 
94,936

 
90,483

 
87,335

 
 
179,704

 
171,578

EXPENSES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property operating
28,821

 
28,135

 
29,481

 
27,614

 
27,977

 
 
56,956

 
54,065

General & administrative
9,914

 
9,572

 
9,715

 
9,018

 
8,699

 
 
19,486

 
18,719

Acquisition costs
252

 
179

 
117

 
—

 
—

 
 
431

 
—

Depreciation and amortization
22,172

 
22,288

 
23,436

 
24,809

 
24,923

 
 
44,460

 
50,438

Total expenses
61,159

 
60,174

 
62,749

 
61,441

 
61,599

 
 
121,333

 
123,222

Operating income
29,856

 
28,515

 
32,187

 
29,042

 
25,736

 
 
58,371

 
48,356

Interest expense
12,583

 
12,876

 
12,752

 
12,317

 
12,411

 
 
25,459

 
24,745

Income before equity in losses of unconsolidated joint ventures
17,273

 
15,639

 
19,435

 
16,725

 
13,325

 
 
32,912

 
23,611

Equity in earnings (losses) of unconsolidated joint ventures
503

 
590

 
(421
)
 
(555
)
 
(867
)
 
 
1,093

 
(2,319
)
Net income
17,776

 
16,229

 
19,014

 
16,170

 
12,458

 
 
34,005

 
21,292

Noncontrolling interests in Operating Partnership
(859
)
 
(789
)
 
(952
)
 
(836
)
 
(766
)
 
 
(1,648
)
 
(1,479
)
Noncontrolling interests in other consolidated partnerships
(29
)
 
(1
)
 
(6
)
 
(7
)
 
25

 
 
(30
)
 
32

Net income attributable to Tanger Factory Outlet Centers, Inc.
16,888

 
15,439

 
18,056

 
15,327

 
11,717

 
 
32,327

 
19,845

Allocation to participating securities
(231
)
 
(194
)
 
(208
)
 
(209
)
 
(209
)
 
 
(425
)
 
(367
)
Net income available to common shareholders
$
16,657

 
$
15,245

 
$
17,848

 
$
15,118

 
$
11,508

 
 
$
31,902

 
$
19,478

Basic earnings per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
0.18

 
$
0.16

 
$
0.19

 
$
0.16

 
$
0.13

 
 
$
0.34

 
$
0.21

Diluted earnings per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
0.18

 
$
0.16

 
$
0.19

 
$
0.16

 
$
0.12

 
 
$
0.34

 
$
0.21

Weighted average common shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
93,331

 
93,132

 
92,845

 
92,674

 
91,717

 
 
93,232

 
90,694

Diluted
94,207

 
94,043

 
93,807

 
93,647

 
92,816

 
 
94,108

 
91,775





12
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2013


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

 
 

Net income
$
17,776

 
$
16,229

 
$
19,014

 
$
16,170

 
$
12,458

 
 
$
34,005

 
$
21,292

Adjusted for -
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization uniquely significant to real estate - consolidated properties
21,867

 
22,043

 
23,217

 
24,532

 
24,710

 
 
43,910

 
50,011

Depreciation and amortization uniquely significant to real estate - unconsolidated joint ventures
3,431

 
3,173

 
2,996

 
1,641

 
1,653

 
 
6,604

 
3,468

Impairment charge - unconsolidated joint ventures
—

 
—

 
—

 
—

 
140

 
 
—

 
140

Funds from operations
43,074

 
41,445

 
45,227

 
42,343

 
38,961

 
 
84,519

 
74,911

FFO attributable to noncontrolling interests in other consolidated partnerships
(66
)
 
(7
)
 
(36
)
 
(4
)
 
16

 
 
(73
)
 
14

Allocation to participating securities
(461
)
 
(425
)
 
(451
)
 
(425
)
 
(391
)
 
 
(887
)
 
(698
)
Funds from operations available to
    common shareholders
$
42,547

 
$
41,013

 
$
44,740

 
$
41,914

 
$
38,586

 
 
$
83,559

 
$
74,227

Funds from operations per share
$
0.43

 
$
0.42

 
$
0.45

 
$
0.42

 
$
0.39

 
 
$
0.85

 
$
0.75

Funds available for distribution to common shareholders:
 
 

 
 

 
 
 
 
 

Funds from operations
$
42,547

 
$
41,013

 
$
44,740

 
$
41,914

 
$
38,586

 
 
$
83,559

 
$
74,227

Adjusted for -
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate depreciation excluded above
305

 
245

 
219

 
276

 
214

 
 
550

 
428

Amortization of finance costs
598

 
603

 
591

 
576

 
585

 
 
1,201

 
1,146

Amortization of net debt discount (premium)
(252
)
 
(261
)
 
(254
)
 
(253
)
 
(252
)
 
 
(513
)
 
(500
)
Amortization of share-based compensation
2,939

 
2,460

 
2,338

 
2,339

 
2,313

 
 
5,399

 
5,619

Straight line rent adjustment
(1,393
)
 
(1,087
)
 
(783
)
 
(1,009
)
 
(860
)
 
 
(2,480
)
 
(1,857
)
Market rent adjustment
181

 
(27
)
 
141

 
(59
)
 
(196
)
 
 
154

 
(430
)
2nd generation tenant allowances
(5,442
)
 
(1,885
)
 
(5,901
)
 
(1,297
)
 
(3,179
)
 
 
(7,327
)
 
(8,716
)
Capital improvements
(6,735
)
 
(2,882
)
 
(1,410
)
 
(2,951
)
 
(2,500
)
 
 
(9,617
)
 
(3,391
)
Adjustments from unconsolidated joint ventures
(220
)
 
(30
)
 
17

 
257

 
78

 
 
(250
)
 
246

Funds available for distribution
$
32,528

 
$
38,149

 
$
39,698

 
$
39,793

 
$
34,789

 
 
$
70,676

 
$
66,772

Funds available for distribution
   per share
$
0.33

 
$
0.39

 
$
0.40

 
$
0.40

 
$
0.35

 
 
$
0.71

 
$
0.68

Dividends paid per share
$
0.23

 
$
0.21

 
$
0.21

 
$
0.21

 
$
0.21

 
 
$
0.44

 
$
0.41

FFO payout ratio
53
%
 
50
%
 
47
%
 
50
%
 
54
%
 
 
52
%
 
55
%
FAD payout ratio
70
%
 
54
%
 
53
%
 
53
%
 
60
%
 
 
62
%
 
60
%
Diluted weighted average common shs.
98,955

 
98,798

 
98,699

 
98,699

 
98,812

 
 
98,859

 
98,702


13
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2013



Unconsolidated Joint Venture Information

The following table details certain information as of June 30, 2013, except for Net Operating Income ("NOI") which is for the six months ended June 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
Deer Park
 
Deer Park,
Long Island NY
 
33.3
%
 
741,981

 
$
86.5

 
$
3.1

 
$
82.3

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

 
40.7

 
2.2

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
National Harbor (1)
 
Washington D.C.
Metro Area
 
50.0
%
 
—

 
23.0

 
—

 
2.1

 
 
 
 
 
 
 
 
 
 
 
 
 
RioCan Canada (2)
 
Various
 
50.0
%
 
434,162

 
90.7

 
2.1

 
9.4

 
 
 
 
 
 
 
 
 
 
 
 
 
Westgate
 
Glendale, AZ
 
58.0
%
 
331,739

 
42.3

 
2.3

 
24.5

 
 
 
 
 
 
 
 
 
 
 
 
 
Wisconsin Dells
 
Wisconsin Dells, WI
 
50.0
%
 
265,086

 
15.2

 
1.1

 
12.1

 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
0.1

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
$
298.5

 
$
10.8

 
$
130.4

(1)
Center is currently under development.
(2)
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 due diligence costs for additional potential sites in Canada.



14
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2013


Unconsolidated Joint Venture Information
Summary Combined Balance Sheets (dollars in thousands)
 
6/30/2013
 
3/31/2013
 
12/31/2012
 
9/30/2012
 
6/30/2012
 
 
 
Tanger's Share as of 6/30/13
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Land
$
94,961

 
$
95,748

 
$
96,455

 
$
64,321

 
$
63,269

 
 
 
$
40,751

Buildings, improvements and fixtures
493,100

 
495,958

 
493,424

 
295,593

 
295,020

 
 
 
211,377

Construction in progress, including land
90,413

 
21,974

 
16,338

 
127,379

 
99,310

 
 
 
45,207

 
678,474

 
613,680

 
606,217

 
487,293

 
457,599

 
 
 
297,335

Accumulated depreciation
(74,642
)
 
(68,667
)
 
(62,547
)
 
(57,067
)
 
(53,192
)
 
 
 
(28,798
)
Total rental property, net
603,832

 
545,013

 
543,670

 
430,226

 
404,407

 
 
 
268,537

Assets held for sale (1)
—

 
—

 
1,828

 
1,821

 
1,800

 
 
 
—

Cash and cash equivalents
16,511

 
20,531

 
21,879

 
10,778

 
16,855

 
 
 
8,058

Deferred lease costs, net
21,285

 
23,080

 
24,411

 
13,586

 
13,514

 
 
 
10,486

Deferred debt origination costs, net
4,025

 
4,399

 
5,213

 
5,773

 
6,566

 
 
 
1,626

Prepaids and other assets
26,181

 
24,900

 
25,350

 
21,396

 
16,386

 
 
 
9,814

Total assets
$
671,834

 
$
617,923

 
$
622,351

 
$
483,580

 
$
459,528


 
 
$
298,521

 
 
 
 
 
 
 
 

 
 

 
 
 
 

Liabilities & Owners' Equity
 
 
 
 
 
 
 

 
 

 
 
 
 

Mortgages payable
$
336,338

 
$
329,262

 
$
325,192

 
$
288,978

 
$
273,034

 
 
 
$
130,391

Construction trade payables
10,842

 
14,232

 
21,734

 
14,506

 
23,135

 
 
 
5,542

Accounts payable & other liabilities
14,830

 
16,726

 
31,944

 
26,125

 
25,641

 
 
 
5,848

Total liabilities
362,010

 
360,220

 
378,870

 
329,609

 
321,810


 
 
141,781

Owners' equity
309,824

 
257,703

 
243,481

 
153,971

 
137,718

 
 
 
156,740

Total liabilities & owners' equity
$
671,834

 
$
617,923

 
$
622,351

 
$
483,580

 
$
459,528


 
 
$
298,521

(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 6/30/2013


Unconsolidated Joint Venture Information
Summary Combined Statements of Operations (dollars in thousands)
 
Three Months Ended
 
YTD
 
6/30/13
 
3/31/13
 
12/31/12
 
9/30/12
 
6/30/12
 
 
 
6/30/13
 
6/30/12
Revenues
$
20,553

 
$
21,395

 
$
19,687

 
$
11,985

 
$
11,606

 
 
 
$
41,948

 
$
23,264

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property operating
8,546

 
9,140

 
9,183

 
5,521

 
5,083

 
 
 
17,686

 
9,974

General & administrative
166

 
148

 
205

 
365

 
237

 
 
 
314

 
400

Acquisition costs
53

 
421

 
733

 
—

 
—

 
 
 
474

 
704

Abandoned development costs
134

 
—

 
57

 
—

 
436

 
 
 
134

 
1,310

Impairment charge
—

 
—

 
—

 
—

 
420

 
 
 
—

 
420

Depreciation & amortization
7,584

 
7,384

 
6,723

 
4,283

 
4,300

 
 
 
14,968

 
8,908

Total expenses
16,483

 
17,093

 
16,901

 
10,169

 
10,476

 
 
 
33,576

 
21,716

Operating income
4,070

 
4,302

 
2,786

 
1,816

 
1,130

 


8,372

 
1,548

Interest expense
3,514

 
4,052

 
3,793

 
3,540

 
3,598

 
 
 
7,566

 
7,427

Net income (loss)
$
556

 
$
250

 
$
(1,007
)
 
$
(1,724
)
 
$
(2,468
)
 


$
806

 
$
(5,879
)
Tanger's share of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenues less property operating and general & administrative expenses ("NOI")
$
5,334

 
$
5,443

 
$
4,326

 
$
2,303

 
$
2,379

 
 
 
$
10,778

 
$
4,905

Net income (loss)
$
503

 
$
590

 
$
(421
)
 
$
(555
)
 
$
(867
)
 
 
 
$
1,093

 
$
(2,319
)
Depreciation and impairments (real estate related)
$
3,431

 
$
3,173

 
$
2,996

 
$
1,641

 
$
1,793

 
 
 
$
6,604

 
$
3,608


16
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2013



External Growth Pipeline Summary
Represents Tanger's expectations as of July 30, 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)
312
$110 - $120
67%
(1)
2H 2014
Charlotte, NC
400
$85 - $95
50%
(1)
2H 2014
Columbus, OH
350
$75 - $85
50%
(1)
2H 2014
Scottsdale, AZ
220
$45 - $55
100%
(1)
1H 2015
 
 
 
 
 
 
 
Expansions
 
 
 
 
 
Sevierville, TN
20
$4 - $4.5
100%
11.5% - 12.5%
3Q 2013
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%
3Q 2014
 
 
 
 
 
 
 
Expansions
 
 
 
 
 
Cookstown, ON (N. Toronto)
153
$65 - $75
50%
5.5% - 6.5%
3Q 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 6/30/2013


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

 
 
 
 
 
 
Unsecured lines of credit (1)
$
213,100

 
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 note
10,000

 
1.50%
 
3.153
%
 
6/30/2016
Net debt discounts
(2,298
)
 
 
 
 
 
 
Total unsecured debt
1,020,802

 
 
 
 
 
 
Secured mortgage debt: (2)
 
 
 
 
 
 
 
Atlantic City, NJ (including premium of $4,287)
54,038

 
5.14% - 7.65%
 
5.05
%
 
11/15/2021 - 12/8/2026
Ocean City, MD (including premium of $240)
18,607

 
5.24%
 
4.68
%
 
1/6/2016
Hershey, PA (including premium of $1,289)
31,592

 
5.17% - 8.00%
 
3.40
%
 
8/1/2015
Total secured mortgage debt
104,237

 
 
 
 
 
 
Tanger's share of unconsolidated JV debt:
 

 
 
 
 
 
 
Deer Park (3)
82,314

 
Libor +
 3.50 - 5.00%
 
 
 
5/17/2014
National Harbor (4)
2,118

 
Libor + 1.65
 
 
 
5/16/2016
RioCan Canada (including premium of $643) (5)
9,332

 
5.10% - 5.75%
 
3.93% - 4.18%

 
6/22/2015 - 5/10/2020
Westgate (6)
24,502

 
Libor + 1.75%
 
 
 
6/27/2015
Wisconsin Dells (7)
12,125

 
Libor + 2.25%
 
 
 
12/17/2022
Total Tanger's share of unconsolidated JV debt
$
130,391

 
 
 
 
 
 
(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 November 10, 2015. Facility fees of 17.5 basis points annually are charged in arrears based on the amount of the commitment.
(2)
Represents mortgages assumed in the acquisitions of various properties owned by joint ventures which are consolidated for financial reporting purposes.
(3)
In December 2011, the joint venture refinanced its mortgage and mezzanine loans, totaling $246.9 million. The non-default interest rates for the mortgage and mezzanine loans are LIBOR + 3.50% and LIBOR + 5.00%, respectively with a maturity date of May 17, 2014. The loans require certain financial covenants, such as debt service coverage and loan to value ratios, to be met at various measurement dates. Based on the administrative agent bank's calculation of Deer Park's debt service coverage ratio utilizing financial information as of December 31, 2012, the joint venture was not in compliance with the coverage ratio. As a result, on March 22, 2013, the lender group placed Deer Park in default and also notified Deer Park that the default interest rates would accrue from April 1st until the default is cured. The default interest rates for the mortgage and mezzanine loans are PRIME + 7.5% and LIBOR + 9%, respectively.

On July 25, 2013, the lenders for both the mortgage and the mezzanine loans and Deer Park entered into forbearance agreements whereby the lenders and Deer Park agreed, among other things, that (1) the partners would make an immediate principal reduction of $10 million toward the mortgage on the date of the agreement, (2) default interest through June 30, 2013 would be permanently waived and (3) default interest from July 1st forward would continue to accrue but shall be waived subject to the loans being repaid in full by August 30, 2013. On July 25, 2013, the partners of Deer Park funded the principal payment of $10 million.

18
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2013


(4)
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 June 30, 2013, the balance on the loan was $4.2 million.
(5)
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 $17.4 million and carry a weighted average interest rate of 5.7% and mature in 2015 and 2020, respectively.
(6)
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 June 30, 2013, the balance on the loan was $42.2 million.
(7)
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 6/30/2013


Future Scheduled Principal Payments (dollars in thousands)
As of June 30, 2013
Year
Tanger
Consolidated
Payments
 
Tanger's Share
of Unconsolidated
JV Payments
 
Total
Scheduled
Payments
2013
$
1,723

 
$
159

 
$
1,882

2014
3,603

 
82,646

 
86,249

2015
495,443

 
25,633

 
521,076

2016
30,283

 
2,443

 
32,726

2017
3,008

 
344

 
3,352

2018
3,184

 
364

 
3,548

2019
253,369

 
385

 
253,754

2020
303,566

 
5,649

 
309,215

2021
5,793

 
—

 
5,793

2022
4,436

 
12,125

 
16,561

2023 & thereafter
17,113

 
—

 
17,113

 
$
1,121,521

 
$
129,748

 
$
1,251,269

Net Premiums on Debt
3,518

 
643

 
4,161

 
$
1,125,039

 
$
130,391

 
$
1,255,430

Senior Unsecured Notes Financial Covenants (1)
As of June 30, 2013
 
Required
 
Actual
 
Compliance
Total Consolidated Debt to Adjusted Total Assets
<60%
 
47
%
 
Yes
Total Secured Debt to Adjusted Total Assets
<40%
 
4
%
 
Yes
Total Unencumbered Assets to Unsecured Debt
>135%
 
193
%
 
Yes
Consolidated Income Available for Debt Service to Annual Debt Service Charge
>1.5
 
4.65

 
Yes
(1)
For a complete listing of all Debt Covenants related to the Company's Senior Unsecured Notes, as well as definitions of the above terms, please refer to the Company's filings with the Securities and Exchange Commission.


20
Supplemental Operating and Financial Data for the
Quarter Ended 6/30/2013


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 6/30/2013

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