TANGER FACTORY OUTLET CENTERS, INC - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - February 9, 2016

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Exhibit 99.2
Tanger Factory Outlet Centers, Inc.
  
Supplemental Operating and Financial Data
December 31, 2015


1
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2015


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 and for the fiscal year ended December 31, 2015 (when available).
  
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 12/31/2015


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 December 31, 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 12/31/2015


Geographic Diversification

Consolidated Properties
As of December 31, 2015
State
# of Centers
 
GLA
 
% of GLA
South Carolina
5

 
1,593,904

 
14
%
New York
2

 
1,478,808

 
12
%
Pennsylvania
3

 
874,460

 
7
%
Georgia
2

 
692,478

 
6
%
Michigan
2

 
671,877

 
6
%
Texas
2

 
643,497

 
5
%
Connecticut
2

 
601,493

 
5
%
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
%
Ohio
1

 
411,776

 
3
%
Missouri
1

 
329,861

 
3
%
Mississippi
1

 
323,720

 
3
%
Utah
1

 
319,661

 
3
%
Louisiana
1

 
318,666

 
3
%
Iowa
1

 
276,331

 
2
%
New Hampshire
1

 
245,698

 
2
%
Florida
1

 
198,877

 
2
%
Maryland
1

 
198,840

 
2
%
Total
34

 
11,745,832

 
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

 
377,286

 
50.00
%
Texas City, TX
1

 
352,705

 
50.00
%
National Harbor, MD
1

 
338,786

 
50.00
%
Cookstown, ON
1

 
308,745

 
50.00
%
Ottawa, ON (1)
1

 
284,244

 
50.00
%
Bromont, QC
1

 
161,449

 
50.00
%
Saint-Sauveur, QC
1

 
115,771

 
50.00
%
Total
9

 
2,747,487

 
 
(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 12/31/2015


Property Summary - Occupancy at End of Each Period Shown

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

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

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

 
100
%
 
100
%
 
99
%
 
98
%
 
98
%
Foley, AL
557,014

 
96
%
 
93
%
 
96
%
 
96
%
 
96
%
Atlantic City, NJ
489,706

 
91
%
 
94
%
 
95
%
 
94
%
 
94
%
San Marcos, TX
465,697

 
98
%
 
98
%
 
95
%
 
97
%
 
99
%
Sevierville, TN
448,335

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

 
95
%
 
97
%
 
98
%
 
96
%
 
96
%
Jeffersonville, OH
411,776

 
100
%
 
99
%
 
97
%
 
98
%
 
98
%
Myrtle Beach Hwy 17, SC
402,797

 
100
%
 
99
%
 
100
%
 
100
%
 
100
%
Charleston, SC
382,117

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

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

 
97
%
 
97
%
 
96
%
 
92
%
 
99
%
Grand Rapids, MI
351,988

 
95
%
 
93
%
 
N/A

 
N/A

 
N/A

Branson, MO
329,861

 
100
%
 
100
%
 
99
%
 
98
%
 
100
%
Southaven, MS
323,720

 
96
%
 
N/A

 
N/A

 
N/A

 
N/A

Locust Grove, GA
321,070

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

 
94
%
 
94
%
 
93
%
 
93
%
 
98
%
Park City, UT
319,661

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

 
100
%
 
95
%
 
100
%
 
97
%
 
100
%
Gonzales, LA
318,666

 
99
%
 
100
%
 
100
%
 
100
%
 
100
%
Mashantucket, CT (Foxwoods)
311,595

 
95
%
 
94
%
 
91
%
 
N/A

 
N/A

Westbrook, CT
289,898

 
94
%
 
93
%
 
95
%
 
95
%
 
96
%
Williamsburg, IA
276,331

 
99
%
 
99
%
 
97
%
 
99
%
 
100
%
Lancaster, PA
254,002

 
99
%
 
99
%
 
99
%
 
99
%
 
100
%
Hershey, PA
247,500

 
100
%
 
98
%
 
95
%
 
100
%
 
100
%
Tilton, NH
245,698

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

 
97
%
 
95
%
 
95
%
 
95
%
 
100
%
Fort Myers, FL
198,877

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

 
79
%
 
99
%
 
99
%
 
97
%
 
98
%
Terrell, TX
177,800

 
98
%
 
97
%
 
95
%
 
96
%
 
99
%
Hilton Head I, SC
177,199

 
97
%
 
97
%
 
100
%
 
100
%
 
100
%
Blowing Rock, NC
104,052

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

 
97
%
 
100
%
 
100
%
 
94
%
 
100
%
Barstow, CA (2)
N/A

 
N/A

 
100
%
 
100
%
 
100
%
 
100
%
Kittery I, ME(2)
N/A

 
N/A

 
N/A

 
100
%
 
100
%
 
100
%
Kittery II, ME(2)
N/A

 
N/A

 
N/A

 
92
%
 
100
%
 
100
%
Lincoln City, OR (2)
N/A

 
N/A

 
N/A

 
N/A

 
N/A

 
N/A

Tuscola, IL(2)
N/A

 
N/A

 
N/A

 
88
%
 
85
%
 
87
%
West Branch, MI(2)
N/A

 
N/A

 
N/A

 
88
%
 
88
%
 
94
%
Total
11,745,832

 
98
%
(1),(4) 
97
%
(1),(3) 
97
%
 
97
%
 
98
%
(1)
Excludes the occupancy rate at our Foxwoods, Grand Rapids and Southaven centers which opened during the second, third and fourth quarters of 2015, respectively, and have not yet stabilized.
(2)
Sold the Kittery I, Kittery II, Tuscola, and West Branch centers in September 2015, and sold the Barstow center in October 2015.
(3)
Excludes the occupancy rate at our Barstow center which was sold on October 5, 2015.
(4)
Excludes the occupancy rate of the Fort Myers center which was sold on January 12, 2016.

5
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2015


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

 
100
%
 
100
%
 
99
%
 
99
%
 
97
%
Charlotte, NC
397,837

 
99
%
 
99
%
 
99
%
 
98
%
 
99
%
Savannah, GA (1)
377,286

 
99
%
 
99
%
 
96
%
 
N/A

 
N/A

Texas City, TX
352,705

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

 
99
%
 
99
%
 
99
%
 
97
%
 
100
%
Cookstown, ON
308,745

 
100
%
 
100
%
 
93
%
 
96
%
 
96
%
Ottawa, ON (2)
284,244

 
97
%
 
97
%
 
95
%
 
92
%
 
95
%
Bromont, QC
161,449

 
75
%
 
74
%
 
74
%
 
73
%
 
81
%
Saint-Sauveur, QC
115,771

 
97
%
 
97
%
 
97
%
 
92
%
 
100
%
Wisconsin Dells, WI (3)
N/A

 
N/A

 
N/A

 
N/A

 
N/A

 
100
%
Total
2,747,487

 
98
%
 
97
%
 
96
%
 
95
%
 
97
%

(1)
Center opened in April 2015.
(2)
Excludes square feet to be completed and turned over to a magnet tenant at a later date.
(3)
Sold our equity interest in center in February 2015.



6
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2015


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 12/31/2015


Average Tenant Sales Per Square Foot by Outlet Center Ranking As of December 31, 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
$
523

98
%
2,812

26
%
34
%
Centers 6 - 10
$
438

99
%
1,246

12
%
14
%
Centers 11 - 15
$
394

97
%
1,977

19
%
19
%
Centers 16 - 20
$
349

99
%
1,672

16
%
14
%
Centers 21 - 25
$
306

96
%
1,664

16
%
12
%
Centers 26 - 30
$
271

94
%
1,189

11
%
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
$
523

98
%
2,812

26
%
34
%
Centers 1 - 10
$
493

99
%
4,058

38
%
48
%
Centers 1 - 15
$
458

98
%
6,035

57
%
67
%
Centers 1 - 20
$
433

98
%
7,707

73
%
81
%
Centers 1 - 25
$
410

98
%
9,371

89
%
93
%
Centers 1 - 30
$
395

98
%
10,560

100
%
100
%
 
 





Unconsolidated centers (4)
$
404

99
%
1,500

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 less then 20,000 square feet in size. Centers are ranked by sales per square foot as of December 31, 2015.
 
 
 
 
 
 
 
(2)
Outlet centers included in each ranking group (in alphabetical order) are as follows :
 
Centers 1 - 5: Deer Park, NY; Mebane, NC; Rehoboth Beach, DE, Riverhead, NY; Sevierville, TN
 
Centers 6 - 10: Branson, MO; Hilton Head I, SC; Lancaster, PA; Myrtle Beach 17, SC; Nags Head, NC
 
Centers 11 - 15: Atlantic City, NJ; Charleston, SC; Gonzales, LA; Locust Grove, GA; San Marcos, TX
 
Centers 16 - 20: Hershey, PA; Howell, MI; Jeffersonville, OH; Park City, UT; Pittsburgh, PA
 
 
Centers 21 - 25: Blowing Rock, NC; Commerce II, GA; Foley, AL; Hilton Head II, SC; Myrtle Beach 501, SC
 
Centers 26 - 30: Ocean City, MD; Terrell, TX; Tilton, NH; Westbrook, CT; Williamsburg, IA
 
 
 
Excludes outlet centers not open for 12 full calendar months and the Fort Myers, FL center which was sold in January 2016.
 
 
 
 
 
 
 
(3)
% of Portfolio NOI is based on the company’s forecast of 2016 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 December 31, 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, and for the fiscal year ended December 31, 2015, when available.
 
 
 
 
 
 
 
(4)
Includes domestic outlet centers open 12 full calendar months (Charlotte, NC; Glendale, AZ; National Harbor, MD; Texas City, TX).

8
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2015


Major Tenants (1) 
Ten Largest Tenants as of December 31, 2015
Tenant
# of
Stores

 
GLA

 
% of
Total GLA

The Gap, Inc.
84

 
884,515

 
7.5
%
Ascena Retail Group, Inc.
134

 
821,621

 
7.0
%
Nike, Inc.
37

 
401,279

 
3.4
%
PVH Corp.
64

 
380,469

 
3.2
%
V. F. Corporation
39

 
343,868

 
2.9
%
Ralph Lauren Corporation
36

 
334,081

 
2.8
%
G-III Apparel Group, Ltd.
65

 
312,667

 
2.7
%
Adidas AG
40

 
274,415

 
2.3
%
Carter's, Inc.
59

 
263,276

 
2.3
%
Hanes Brands
41

 
221,168

 
1.9
%
Total of All Listed Above
599

 
4,237,359

 
36.0
%
(1)
Excludes unconsolidated outlet centers. See table on page 4.


9
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2015


Lease Expirations as of December 31, 2015



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


10
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2015


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

 
 

 
 

 
 

 
 

Number of leases
69

 
26

 
19

 
5

 
119

 
134

Gross leasable area
262,689

 
93,579

 
71,489

 
16,120

 
443,877

 
469,774

New initial base rent per square foot
$
27.71

 
$
29.98

 
$
28.02

 
$
24.79

 
$
28.13

 
$
30.08

Prior expiring base rent per square foot
$
24.90

 
$
24.05

 
$
24.22

 
$
30.36

 
$
24.81

 
$
24.31

Percent increase
11.3
%
 
24.7
%
 
15.7
%
 
(18.3
)%
 
13.4
%
 
23.7
%
 
 
 
 
 
 
 
 
 
 
 


New straight line base rent per square foot
$
31.15

 
$
33.85

 
$
30.88

 
$
25.79

 
$
31.48

 
$
32.93

Prior straight line base rent per square foot
$
24.67

 
$
23.46

 
$
23.29

 
$
28.58

 
$
24.33

 
$
24.20

Percent increase
26.3
%
 
44.3
%
 
32.6
%
 
9.8
 %
 
29.4
%
 
36.1
%
 
 
 
 
 
 
 
 
 
 
 


Renewed Space:
 
 
 
 
 
 
 
 
 
 


Number of leases
172

 
43

 
27

 
36

 
278

 
275

Gross leasable area
833,106

 
184,777

 
113,394

 
151,039

 
1,282,316

 
1,241,387

New initial base rent per square foot
$
24.94

 
$
26.40

 
$
24.29

 
$
21.88

 
$
24.73

 
$
22.42

Prior expiring base rent per square foot
$
22.38

 
$
22.67

 
$
22.09

 
$
21.99

 
$
22.35

 
$
20.40

Percent increase
11.5
%
 
16.4
%
 
9.9
%
 
(0.5
)%
 
10.7
%
 
9.9
%
 
 
 
 
 
 
 
 
 
 
 


New straight line base rent per square foot
$
26.53

 
$
27.58

 
$
24.93

 
$
22.44

 
$
26.06

 
$
23.38

Prior straight line base rent per square foot
$
21.74

 
$
22.03

 
$
21.79

 
$
21.64

 
$
21.77

 
$
19.97

Percent increase
22.0
%
 
25.3
%
 
14.4
%
 
3.7
 %
 
19.7
%
 
17.1
%
 
 
 
 
 
 
 
 
 
 
 


Total Re-tenanted and Renewed Space (3):
 
 
 
 
 
 
 
 
 
 


Number of leases
241

 
69

 
46

 
41

 
397

 
409

Gross leasable area
1,095,795

 
278,356

 
184,883

 
167,159

 
1,726,193

 
1,711,161

New initial base rent per square foot
$
25.60

 
$
27.60

 
$
25.73

 
$
22.16

 
$
25.60

 
$
24.52

Prior expiring base rent per square foot
$
22.98

 
$
23.13

 
$
22.91

 
$
22.80

 
$
22.98

 
$
21.47

Percent increase
11.4
%
 
19.3
%
 
12.3
%
 
(2.8
)%
 
11.4
%
 
14.2
%
 
 
 
 
 
 
 
 
 
 
 


New straight line base rent per square foot
$
27.64

 
$
29.69

 
$
27.23

 
$
22.76

 
$
27.45

 
$
26.00

Prior straight line base rent per square foot
$
22.44

 
$
22.51

 
$
22.37

 
$
22.31

 
$
22.43

 
$
21.13

Percent increase
23.1
%
 
31.9
%
 
21.7
%
 
2.0
 %
 
22.4
%
 
23.0
%
(1)
Excludes unconsolidated outlet centers. See table on page 4.
(2)
All 2015 information excludes the outlet centers in Kittery I & II, ME; Tuscola, IL; and West Branch, MI, which were sold on September 30, 2015, and Barstow, CA, which was sold on October 5, 2015.
(3)
Excludes outlet center in Lincoln City, OR, which was sold in December 2014.


11
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2015

Consolidated Balance Sheets (dollars in thousands)
 
12/31/2015
 
9/30/2015
 
6/30/2015
 
3/31/2015
 
12/31/2014
ASSETS
 
 
 
 
 
 
 
 
 
Rental property
 
 
 
 
 
 
 
 
 
Land
$
240,267

 
$
225,306

 
$
217,994

 
$
217,994

 
$
217,994

Buildings, improvements and fixtures
2,249,417

 
2,173,499

 
2,078,946

 
1,950,092

 
1,947,083

Construction in progress
23,533

 
63,445

 
95,167

 
154,328

 
98,526

 
2,513,217

 
2,462,250

 
2,392,107

 
2,322,414

 
2,263,603

Accumulated depreciation
(748,341
)
 
(727,921
)
 
(699,836
)
 
(680,739
)
 
(662,236
)
Total rental property, net
1,764,876

 
1,734,329

 
1,692,271

 
1,641,675

 
1,601,367

Cash and cash equivalents
21,558

 
20,661

 
16,949

 
14,661

 
16,875

Restricted cash
121,306

 
42,904

 
—

 
—

 
—

Rental property held for sale
—

 
19,286

 
46,862

 
46,530

 
46,005

Investments in unconsolidated joint ventures
201,083

 
197,964

 
212,939

 
205,083

 
208,050

Deferred lease costs and other intangibles, net
127,089

 
130,390

 
133,909

 
137,478

 
140,883

Deferred debt origination costs, net
11,882

 
10,688

 
11,417

 
11,606

 
12,126

Prepaids and other assets
78,913

 
74,577

 
74,393

 
71,924

 
72,354

Total assets
$
2,326,707

 
$
2,230,799

 
$
2,188,740

 
$
2,128,957

 
$
2,097,660

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
Debt
 
 
 
 
 
 
 
 
 
Senior, unsecured notes, net of discounts
$
794,253

 
$
794,080

 
$
793,910

 
$
793,741

 
$
793,574

Unsecured term loans, net of discounts
267,419

 
267,378

 
267,338

 
267,298

 
267,259

Mortgages payable, including premiums
311,834

 
281,966

 
276,942

 
285,068

 
271,361

Unsecured lines of credit
190,300

 
195,800

 
176,300

 
115,700

 
111,000

Total debt
1,563,806

 
1,539,224

 
1,514,490

 
1,461,807

 
1,443,194

Accounts payable and accruals
97,396

 
90,506

 
83,787

 
80,835

 
69,558

Deferred financing obligation
28,388

 
28,388

 
28,388

 
28,388

 
28,388

Other liabilities
31,085

 
31,405

 
30,639

 
31,076

 
32,634

Total liabilities
1,720,675

 
1,689,523

 
1,657,304

 
1,602,106

 
1,573,774

Commitments and contingencies
—

 
—

 
—

 
—

 
—

Equity
 
 
 
 
 
 
 
 
 
Tanger Factory Outlet Centers, Inc.
 
 
 
 
 
 
 
 
 
Common shares
959

 
958

 
958

 
958

 
955

Paid in capital
806,379

 
802,638

 
798,587

 
794,652

 
791,566

Accumulated distributions in excess of net income
(195,486
)
 
(256,180
)
 
(272,948
)
 
(270,124
)
 
(281,679
)
Accumulated other comprehensive loss
(36,715
)
 
(33,943
)
 
(22,470
)
 
(25,755
)
 
(14,023
)
  Equity attributable to Tanger Factory Outlet
  Centers, Inc.
575,137

 
513,473

 
504,127

 
499,731

 
496,819

Equity attributable to noncontrolling interests
 
 
 
 
 
 
 
 
 
Noncontrolling interests in Operating Partnership
30,309

 
27,207

 
26,712

 
26,481

 
26,417

Noncontrolling interest in other consolidated partnerships
586

 
596

 
597

 
639

 
650

Total equity
606,032

 
541,276

 
531,436

 
526,851

 
523,886

Total liabilities and equity
$
2,326,707

 
$
2,230,799

 
$
2,188,740

 
$
2,128,957

 
$
2,097,660


12
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2015


Consolidated Statements of Operations (dollars and shares in thousands)
 
 
 
Three Months Ended
 
YTD
 
12/31/15
 
9/30/15
 
6/30/15
 
3/31/15
 
12/31/14
 
 
12/31/15
 
12/31/14
REVENUES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Base rentals
$
73,889

 
$
75,841

 
$
72,329

 
$
67,629

 
$
69,732

 
 
$
289,688

 
$
274,480

Percentage rentals
3,261

 
2,625

 
2,042

 
2,229

 
3,675

 
 
10,157

 
10,307

Expense reimbursements
32,653

 
30,542

 
29,909

 
33,364

 
32,075

 
 
126,468

 
122,532

Management, leasing and other services
1,163

 
1,253

 
1,727

 
1,283

 
1,043

 
 
5,426

 
3,591

Other income
1,835

 
2,645

 
1,729

 
1,421

 
1,849

 
 
7,630

 
7,648

Total revenues
112,801

 
112,906

 
107,736

 
105,926

 
108,374

 
 
439,369

 
418,558

EXPENSES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property operating
37,582

 
36,231

 
34,958

 
37,732

 
34,968

 
 
146,503

 
137,422

General and administrative
10,038

 
11,514

 
11,612

 
11,305

 
11,652

 
 
44,469

 
44,469

Acquisition costs
—

 
—

 
—

 
—

 
—

 
 
—

 
7

Abandoned pre-development costs
—

 
—

 
—

 
—

 
769

 
 
—

 
2,365

Depreciation and amortization
26,890

 
28,785

 
24,272

 
23,989

 
25,398

 
 
103,936

 
102,432

Total expenses
74,510

 
76,530

 
70,842

 
73,026

 
72,787

 
 
294,908

 
286,695

Operating income
38,291

 
36,376

 
36,894

 
32,900

 
35,587

 
 
144,461

 
131,863

OTHER INCOME/(EXPENSE)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
(14,078
)
 
(13,933
)
 
(13,088
)
 
(13,089
)
 
(14,527
)
 
 
(54,188
)
 
(57,931
)
Loss on early extinguishment of debt
—

 
—

 
—

 
—

 
(13,140
)
 
 
—

 
(13,140
)
Gain on sale of assets and interests in unconsolidated entities
86,506

 
20,215

 
—

 
13,726

 
7,513

 
 
120,447

 
7,513

Other nonoperating income (expense)
62

 
89

 
(493
)
 
306

 
234

 
 
(36
)
 
794

Income before equity in earnings of unconsolidated joint ventures
110,781

 
42,747

 
23,313

 
33,843

 
15,667

 
 
210,684

 
69,099

Equity in earnings of unconsolidated joint ventures
3,182

 
3,713

 
2,046

 
2,543

 
2,853

 
 
11,484

 
9,053

Net income
113,963

 
46,460

 
25,359

 
36,386

 
18,520

 
 
222,168

 
78,152

Noncontrolling interests in Operating Partnership
(5,799
)
 
(2,364
)
 
(1,313
)
 
(1,855
)
 
(954
)
 
 
(11,331
)
 
(4,037
)
Noncontrolling interests in other consolidated partnerships
(32
)
 
(21
)
 
435

 
(19
)
 
(24
)
 
 
363

 
(104
)
Net income attributable to Tanger Factory Outlet Centers, Inc.
108,132

 
44,075

 
24,481

 
34,512

 
17,542

 
 
211,200

 
74,011

Allocation to participating securities
(1,198
)
 
(494
)
 
(308
)
 
(408
)
 
(481
)
 
 
(2,408
)
 
(1,872
)
Net income available to common shareholders
$
106,934

 
$
43,581

 
$
24,173

 
$
34,104

 
$
17,061

 
 
$
208,792

 
$
72,139

Basic earnings per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
1.13

 
$
0.46

 
$
0.26

 
$
0.36

 
$
0.18

 
 
$
2.20

 
$
0.77

Diluted earnings per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
1.13

 
$
0.46

 
$
0.26

 
$
0.36

 
$
0.18

 
 
$
2.20

 
$
0.77

Weighted average common shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
94,768

 
94,746

 
94,741

 
94,536

 
93,851

 
 
94,698

 
93,769

Diluted
94,827

 
94,799

 
94,795

 
94,697

 
93,922

 
 
94,759

 
93,839


13
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2015


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

 
 

Net income
$
113,963

 
$
46,460

 
$
25,359

 
$
36,386

 
$
18,520

 
 
$
222,168

 
$
78,152

Adjusted for -
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization of real estate assets - consolidated properties
26,531

 
28,428

 
23,919

 
23,637

 
25,052

 
 
102,515

 
100,961

Depreciation and amortization of real estate assets - unconsolidated joint ventures
5,528

 
5,411

 
5,038

 
4,076

 
4,164

 
 
20,053

 
12,212

Gain on sale of assets and interests in unconsolidated entities
(86,506
)
 
(20,215
)
 
—

 
(13,726
)
 
(7,513
)
 
 
(120,447
)
 
(7,513
)
Funds from operations
59,516

 
60,084

 
54,316

 
50,373

 
40,223

 
 
224,289

 
183,812

FFO attributable to noncontrolling interests in other consolidated partnerships
(57
)
 
(45
)
 
412

 
(42
)
 
(46
)
 
 
268

 
(185
)
Allocation to participating securities
(625
)
 
(640
)
 
(583
)
 
(560
)
 
(795
)
 
 
(2,408
)
 
(3,653
)
Funds from operations available to
    common shareholders
$
58,834

 
$
59,399

 
$
54,145

 
$
49,771

 
$
39,382

 
 
$
222,149

 
$
179,974

Funds from operations per common share
$
0.59

 
$
0.59

 
$
0.54

 
$
0.50

 
$
0.40

 
 
$
2.23

 
$
1.82

Funds available for distribution to common shareholders:
 
 

 
 

 
 
 
 
 

Funds from operations available to common shareholders
$
58,834

 
$
59,399

 
$
54,145

 
$
49,771

 
$
39,382

 
 
$
222,149

 
$
179,974

Adjusted for -
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate depreciation excluded above
359

 
357

 
353

 
352

 
346

 
 
1,421

 
1,471

Amortization of finance costs
835

 
694

 
603

 
599

 
728

 
 
2,731

 
2,382

Amortization of net debt discount (premium)
191

 
139

 
(88
)
 
14

 
(328
)
 
 
256

 
(601
)
Amortization of share-based compensation
3,152

 
3,994

 
3,953

 
3,613

 
3,817

 
 
14,712

 
14,751

Straight line rent adjustment
(1,605
)
 
(1,924
)
 
(1,549
)
 
(1,269
)
 
(1,047
)
 
 
(6,347
)
 
(6,073
)
Market rent adjustment
337

 
825

 
383

 
916

 
961

 
 
2,461

 
3,209

2nd generation tenant allowances
(3,960
)
 
(1,428
)
 
(4,128
)
 
(956
)
 
(6,718
)
 
 
(10,472
)
 
(15,542
)
Capital improvements
(1,231
)
 
(3,555
)
 
(4,558
)
 
(2,738
)
 
(7,668
)
 
 
(12,082
)
 
(36,919
)
Adjustments from unconsolidated joint ventures
(196
)
 
(506
)
 
(399
)
 
(479
)
 
(940
)
 
 
(1,580
)
 
(1,483
)
Funds available for distribution to common shareholders
$
56,716

 
$
57,995

 
$
48,715

 
$
49,823

 
$
28,533

 
 
$
213,249

 
$
141,169

Funds available for distribution
   per common share
0.57

 
$
0.58

 
$
0.49

 
$
0.50

 
$
0.29

 
 
$
2.14

 
$
1.43

Dividends per share
$
0.285

 
$
0.285

 
$
0.285

 
$
0.240

 
$
0.240

 
 
$
1.095

 
$
0.945

Special dividends per share
0.210

 
—

 
—

 
—

 
—

 
 
0.210

 
—

Total dividends per share
$
0.495

 
$
0.285

 
$
0.285

 
$
0.240

 
$
0.240

 
 
$
1.305

 
$
0.945

FFO payout ratio (1)
48
%
 
48
%
 
53
%
 
48
%
 
60
%
 
 
49
%
 
52
%
FAD payout ratio (1)
50
%
 
49
%
 
58
%
 
48
%
 
83
%
 
 
51
%
 
66
%
Diluted weighted average common shs.
99,905

 
99,877

 
99,873

 
99,775

 
99,023

 
 
99,837

 
98,954

(1) Excludes the special dividend of $0.21 per share paid on January 15, 2016 to holders of record on December 31, 2015.

14
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2015


Unconsolidated Joint Venture Information

The following table details certain information as of December 31, 2015, except for Net Operating Income ("NOI") which is for the year ended December 31, 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
 
Charlotte, NC
 
50.0
%
 
397,837

 
$
44.0

 
$
7.1

 
$
45.0

 
 
 
 
 
 
 
 
 
 
 
 
 
Columbus (1)
 
Columbus, OH
 
50.0
%
 
—

 
25.7

 
—

 
—

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

 
32.2

 
4.9

 
32.5

 
 
 
 
 
 
 
 
 
 
 
 
 
National Harbor
 
National Harbor, MD
 
50.0
%
 
338,786

 
50.8

 
5.5

 
43.5

 
 
 
 
 
 
 
 
 
 
 
 
 
RioCan Canada (2)
 
Various
 
50.0
%
 
870,209

 
125.8

 
6.4

 
5.7

 
 
 
 
 
 
 
 
 
 
 
 
 
Savannah (3) (4)
 
Savannah, GA
 
50.0
%
 
377,286

 
96.7

 
6.5

 
44.7

 
 
 
 
 
 
 
 
 
 
 
 
 
Westgate
 
Glendale, AZ
 
58.0
%
 
410,664

 
49.0

 
6.0

 
36.0

 
 
 
 
 
 
 
 
 
 
 
 
 
Wisconsin Dells (5)
 
Wisconsin Dells, WI
 
50.0
%
 
N/A

 
—

 
0.3

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
$
424.2

 
$
36.7

 
$
207.4


(1)
Center is currently under construction.
(2)
Includes a 161,449 square foot center in Bromont, Quebec; a 308,745 square foot center in Cookstown, Ontario; a 284,244 square foot center in Ottawa, Ontario; a 115,771 square foot center in Saint-Sauveur, Quebec; as well as due diligence costs for additional potential sites in Canada.
(3)
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. As of December 31, 2015, based upon the liquidation proceeds we would receive from a hypothetical liquidation of our investment based on depreciated book value, our estimated economic interest in the venture was approximately 98%. 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.
(4)
Center opened on April 16, 2015.
(5)
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 12/31/2015


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 12/31/2015


Non-GAAP Pro Rata Balance Sheet as of December 31, 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
$
240,267

 
$
—

 
$
54,726

 
$
294,993

Buildings, improvements and fixtures
2,249,417

 
(160
)
 
334,896

 
2,584,153

Construction in progress
23,533

 
—

 
31,549

 
55,082

 
2,513,217

 
(160
)
 
421,171

 
2,934,228

Accumulated depreciation
(748,341
)
 
—

 
(32,068
)
 
(780,409
)
Total rental property, net
1,764,876

 
(160
)
 
389,103

 
2,153,819

Cash and cash equivalents
21,558

 
—

 
15,386

 
36,944

Restricted cash
121,306

 
—

 
—

 
121,306

Investments in unconsolidated joint ventures
201,083

 
(426
)
 
(200,657
)
 
—

Deferred lease costs and other intangibles, net
127,089

 
—

 
9,819

 
136,908

Deferred debt origination costs, net
11,882

 
—

 
2,287

 
14,169

Prepaids and other assets
78,913

 
—

 
4,931

 
83,844

Total assets
$
2,326,707

 
$
(586
)
 
$
220,869

 
$
2,546,990

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
Debt
 
 
 
 
 
 
 
Senior, unsecured notes, net of discounts
$
794,253

 
$
—

 
$
—

 
$
794,253

Unsecured term loans, net of discounts
267,419

 
—

 
—

 
267,419

Mortgages payable, including premiums
311,834

 
—

 
207,382

 
519,216

Unsecured lines of credit
190,300

 
—

 
—

 
190,300

Total debt
1,563,806

 
—

 
207,382

 
1,771,188

Accounts payable and accruals
97,396

 
—

 
16,028

 
113,424

Deferred financing obligation
28,388

 
—

 
—

 
28,388

Other liabilities
31,085

 
—

 
(2,541
)
 
28,544

Total liabilities
1,720,675

 
—

 
220,869

 
1,941,544

Commitments and contingencies
—

 
—

 
—

 
—

Equity
 
 
 
 
 
 
 
Tanger Factory Outlet Centers, Inc.
 
 
 
 
 
 
 
Common shares
959

 
—

 
—

 
959

Paid in capital
806,379

 
—

 
—

 
806,379

Accumulated distributions in excess of net income
(195,486
)
 
—

 
—

 
(195,486
)
Accumulated other comprehensive income
(36,715
)
 
—

 
—

 
(36,715
)
Equity attributable to Tanger Factory Outlet Centers, Inc.
575,137

 
—

 
—

 
575,137

Equity attributable to noncontrolling interests
 
 
 
 
 
 
 
Noncontrolling interests in Operating Partnership
30,309

 
—

 
—

 
30,309

Noncontrolling interest in other consolidated partnerships
586

 
(586
)
 
—

 
—

Total equity
606,032

 
(586
)
 
—

 
605,446

Total liabilities and equity
$
2,326,707

 
$
(586
)
 
$
220,869

 
$
2,546,990


17
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2015


Non-GAAP Pro Rata Statement of Operations year to date December 31, 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
$
289,688

 
$
(13
)
 
$
37,131

 
$
326,806

Percentage rentals
10,157

 
—

 
2,036

 
12,193

Expense reimbursements
126,468

 
(7
)
 
19,383

 
145,844

Management, leasing and other services
5,426

 
—

 
—

 
5,426

Other income
7,630

 
—

 
1,498

 
9,128

Total revenues
439,369

 
(20
)
 
60,048

 
499,397

EXPENSES
 
 
 
 
 
 
 
Property operating
146,503

 
(5
)
 
23,071

 
169,569

General and administrative
44,469

 
—

 
302

 
44,771

Acquisition costs
—

 
—

 
—

 
—

Abandoned pre-development costs
—

 
—

 
—

 
—

Depreciation and amortization
103,936

 
(6
)
 
19,964

 
123,894

Total expenses
294,908

 
(11
)
 
43,337

 
338,234

Operating income
144,461

 
(9
)
 
16,711

 
161,163

 
 
 
 
 
 
 
 
OTHER INCOME/(EXPENSE)
 
 
 
 
 
 
 
Interest expense
(54,188
)
 
3

 
(5,330
)
 
(59,515
)
Gain on sale of assets and interests in unconsolidated entities
120,447

 
—

 


 
120,447

Other nonoperating income (expense)
(36
)
 
461

 
11

 
436

Income before equity in earnings of unconsolidated joint ventures
210,684

 
455

 
11,392

 
222,531

Equity in earnings of unconsolidated joint ventures
11,484

 
(92
)
 
(11,392
)
 
—

Net income
222,168

 
363

 
—

 
222,531

Noncontrolling interests in Operating Partnership
(11,331
)
 
—

 
—

 
(11,331
)
Noncontrolling interests in other consolidated partnerships
363

 
(363
)
 
—

 
—

Net income attributable to Tanger Factory Outlet Centers, Inc.
211,200

 
—

 
—

 
211,200

Allocation to participating securities
(2,408
)
 
—

 
—

 
(2,408
)
Net income available to common shareholders
$
208,792

 
$
—

 
$
—

 
$
208,792



18
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2015


External Growth Pipeline Summary as of December 31, 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
 
 
 
 
 
 
 
 
 
Columbus, OH (2)
June 2016
355

$
94.9

$
41.2

50%
$
—

$
—

$
26.9

10.0% - 11.0%
Daytona Beach, FL
Holiday 2016
352

91.2

14.6

100%
—

—

76.6

9.5% - 10.5%
Total New Developments
 
707

$
186.1

$
55.8

 
$
—

$
—

$
103.5

10.3%
 
 
 
 
 
 
 
 
 
 
(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)
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 12/31/2015


Debt Outstanding Summary (dollars in thousands)
As of December 31, 2015
 
Principal
Balance
 
Stated
Interest Rate
 
Effective(1) Interest Rate
 
Maturity
Date
Unsecured debt:
 

 
 
 
 
 
 
Unsecured lines of credit (2)
$
190,300

 
LIBOR + 0.90%

 
 
 
10/29/2019
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 (3)
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
(5,828
)
 
 

 
 
 
 
Total unsecured debt
$
1,251,972

 
 

 
 
 
 
Secured mortgage debt:
 
 
 
 
 
 
 
Atlantic City, NJ (including premium of $3,293) (4)
$
46,605

 
5.14% - 7.65%

 
5.05%

 
11/15/2021 - 12/8/2026
Deer Park, NY (net of discount of $845) (5)
149,155

 
LIBOR + 1.50%

 
 
 
8/30/2018
Foxwoods, CT (6)
70,250

 
LIBOR + 1.65%

 
 
 
12/5/2017
Southaven, MS (7)
45,824

 
LIBOR + 1.75%

 
 
 
4/29/2018
Total secured mortgage debt
$
311,834

 
 
 
 
 
 
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%

 
 
 
7/1/2017
National Harbor (10)
43,500

 
LIBOR + 1.65%

 
 
 
11/13/2019
RioCan Canada (including premium of $303) (11)
5,665

 
5.75
%
 
4.18
%
 
5/10/2020
Savannah (12)
44,757

 
LIBOR + 1.65%

 
 
 
5/21/2017
Westgate (13)
35,960

 
LIBOR + 1.75%

 
 
 
6/27/2017
Total Tanger's share of unconsolidated JV debt
$
207,382

 
 

 
 
 
 
(1)
The effective interest rate excludes interest rate swap agreements we entered into, in October 2013, to hedge our variable interest rate exposure on notional amounts aggregating $150.0 million. The interest rate swap agreements fix the base LIBOR rate at an average of 1.30% through August 14, 2018.

(2)
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. In October 2015, we closed on amendments to our unsecured lines of credit, extending the maturity, and reducing our interest rate. The maturity date of these facilities was extended from October 2017 to October 2019 with the ability to further extend the maturity date for an additional year at our option. The interest rate was reduced from LIBOR + 1.00% to LIBOR + 0.90% based on our current credit rating and the maximum borrowings to which the syndicated line could be increased through an accordion feature in certain circumstances was increased from $750.0 million to $1.0 billion. Loan origination costs associated with the amendments totaled approximately $2.0 million. Facility fees of 15 basis points annually are charged in arrears based on the full amount of the commitment.

(3)
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%.


20
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2015


(4)
Represents mortgages assumed in the acquisitions of various properties.

(5)
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%. On January 28, 2016, we repaid the the mortgage loan in full.

(6)
In December 2014, the consolidated 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.

(7)
In April 2015, the consolidated 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. As of December 31, 2015 the balance on the loan was $45.8 million. The additional $14.2 million is available to fund the remaining construction costs to complete the center which opened in November 2015.

(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. As of December 31, 2015, the balance on the loan was $90.0 million.

(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 December 31, 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 December 31, 2015, the balance on the loan was $87.0 million.

(11)
Represents the mortgage assumed related to the acquisition of the Saint-Sauveur, Quebec property by the RioCan co-owners in November 2012. The mortgage has a principal balance of $10.7 million and matures on May 10, 2020.

(12)
In May 2014, the joint venture closed on a construction loan with the ability to borrow up to $97.7 million. In September 2015, the loan maximum borrowing amount was increased to $100.9 million. 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 December 31, 2015, the balance on the loan was $89.5 million. The additional $11.4 million is available for construction of the approximately 42,000 square foot expansion that is currently in progress.

(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 December 31, 2015, the balance on the loan was $62.0 million.







21
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2015


Future Scheduled Principal Payments (dollars in thousands)
As of December 31, 2015
Year
Tanger
Consolidated
Payments
 
Tanger's Share
of Unconsolidated
JV Payments
 
Total
Scheduled
Payments
2016
$
12,842

 
$
245

 
$
13,087

2017
80,758

 
113,477

 
194,235

2018 (1)
199,008

 
45,275

 
244,283

2019 (2)
443,669

 
43,791

 
487,460

2020
303,566

 
4,291

 
307,857

2021
5,793

 
—

 
5,793

2022
4,436

 
—

 
4,436

2023
254,768

 
—

 
254,768

2024
255,140

 
—

 
255,140

2025
1,501

 
—

 
1,501

2026 & thereafter
5,705

 
—

 
5,705

 
$
1,567,186

 
$
207,079

 
$
1,774,265

Net Discount on Debt
(3,380
)
 
303

 
(3,077
)
 
$
1,563,806

 
$
207,382

 
$
1,771,188

(1)
On January 28, 2016, we repaid the $150.0 million mortgage loan associated with our Deer Park outlet center.
(2)
Includes balances of $190.3 million outstanding under the company's unsecured lines of credit.
Senior Unsecured Notes Financial Covenants (1) 
As of December 31, 2015
 
Required
 
Actual
 
Compliance
Total Consolidated Debt to Adjusted Total Assets
<60%
 
49
%
 
Yes
Total Secured Debt to Adjusted Total Assets
<40%
 
10
%
 
Yes
Total Unencumbered Assets to Unsecured Debt
>150%
 
181
%
 
Yes
Consolidated Income Available for Debt Service to Annual Debt Service Charge
>1.5
 
5.23

 
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.


22
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2015


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 12/31/2015

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