TANGER FACTORY OUTLET CENTERS, INC - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - April 26, 2016

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Exhibit 99.2
Tanger Factory Outlet Centers, Inc.
  
Supplemental Operating and Financial Data
March 31, 2016


1
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2016


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, 2015.
  
This Supplemental Operating and Financial Data is not an offer to sell or a solicitation to buy any securities of the Company. Any offers to sell or solicitations to buy any securities of the Company shall be made only by means of a prospectus.


2
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2016


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 March 31, 2016
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 3/31/2016


Geographic Diversification

Consolidated Properties
As of March 31, 2016
State
# of Centers
 
GLA
 
% of GLA
South Carolina
5

 
1,598,375

 
14
%
New York
2

 
1,478,808

 
12
%
Pennsylvania
3

 
867,460

 
8
%
Georgia
2

 
692,478

 
6
%
Michigan
2

 
667,029

 
6
%
Texas
2

 
643,497

 
6
%
Connecticut
2

 
601,512

 
5
%
Alabama
1

 
556,984

 
5
%
Delaware
1

 
556,638

 
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

 
320,334

 
3
%
Utah
1

 
319,661

 
3
%
Louisiana
1

 
318,666

 
3
%
Iowa
1

 
276,331

 
2
%
New Hampshire
1

 
245,698

 
2
%
Maryland
1

 
198,840

 
2
%
Total
33

 
11,527,112

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

 
410,664

 
58.00
%
Charlotte, NC
1

 
397,839

 
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
%
Ottawa, ON
1

 
316,494

 
50.00
%
Cookstown, ON
1

 
308,517

 
50.00
%
Bromont, QC
1

 
161,307

 
50.00
%
Saint-Sauveur, QC
1

 
115,771

 
50.00
%
Total
9

 
2,779,369

 
 


4
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2016


Property Summary - Occupancy at End of Each Period Shown
Consolidated properties
 
 
 
 
 
 
 
 
 
 
Location
Total GLA
3/31/16
 
% Occupied
3/31/16
 
% Occupied
12/31/15
 
% Occupied
9/30/15
 
% Occupied
6/30/15
 
% Occupied
3/31/15
Deer Park, NY
749,074

 
96
%
 
95
%
 
95
%
 
94
%
 
94
%
Riverhead, NY
729,734

 
99
%
 
99
%
 
98
%
 
97
%
 
97
%
Foley, AL
556,984

 
94
%
 
96
%
 
93
%
 
96
%
 
96
%
Rehoboth Beach, DE
556,638

 
99
%
 
100
%
 
100
%
 
99
%
 
98
%
Atlantic City, NJ
489,706

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

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

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

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

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

 
98
%
 
100
%
 
99
%
 
100
%
 
100
%
Charleston, SC
382,117

 
98
%
 
99
%
 
99
%
 
99
%
 
99
%
Pittsburgh, PA
372,958

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

 
94
%
 
97
%
 
97
%
 
96
%
 
92
%
Grand Rapids, MI
351,988

 
94
%
 
95
%
 
93
%
 
N/A

 
N/A

Branson, MO
329,861

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

 
100
%
 
100
%
 
100
%
 
99
%
 
100
%
Southaven, MS
320,334

 
97
%
 
96
%
 
N/A

 
N/A

 
N/A

Park City, UT
319,661

 
98
%
 
100
%
 
99
%
 
99
%
 
99
%
Mebane, NC
318,910

 
98
%
 
100
%
 
95
%
 
100
%
 
97
%
Gonzales, LA
318,666

 
98
%
 
99
%
 
100
%
 
100
%
 
100
%
Howell, MI
315,041

 
92
%
 
94
%
 
94
%
 
93
%
 
93
%
Mashantucket, CT (Foxwoods)
311,614

 
96
%
 
95
%
 
94
%
 
91
%
 
N/A

Westbrook, CT
289,898

 
92
%
 
94
%
 
93
%
 
95
%
 
95
%
Williamsburg, IA
276,331

 
95
%
 
99
%
 
99
%
 
97
%
 
99
%
Hershey, PA
247,500

 
99
%
 
100
%
 
98
%
 
95
%
 
100
%
Lancaster, PA
247,002

 
97
%
 
99
%
 
99
%
 
99
%
 
99
%
Tilton, NH
245,698

 
97
%
 
98
%
 
98
%
 
96
%
 
96
%
Hilton Head II, SC
206,544

 
95
%
 
97
%
 
95
%
 
95
%
 
95
%
Ocean City, MD
198,840

 
79
%
 
79
%
 
99
%
 
99
%
 
97
%
Hilton Head I, SC
181,670

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

 
98
%
 
98
%
 
97
%
 
95
%
 
96
%
Blowing Rock, NC
104,052

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

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

 
N/A

 
N/A

 
100
%
 
100
%
 
100
%
Fort Myers, FL (2)
N/A

 
N/A

 
91
%
 
90
%
 
91
%
 
93
%
Kittery I, ME(2)
N/A

 
N/A

 
N/A

 
N/A

 
100
%
 
100
%
Kittery II, ME(2)
N/A

 
N/A

 
N/A

 
N/A

 
92
%
 
100
%
Tuscola, IL(2)
N/A

 
N/A

 
N/A

 
N/A

 
88
%
 
85
%
West Branch, MI(2)
N/A

 
N/A

 
N/A

 
N/A

 
88
%
 
88
%
Total
11,527,112

 
97
%
(1) 
98
%
(1),(3) 
97
%
(1),(4) 
97
%
(1) 
97
%
(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, sold the Barstow center in October 2015 and sold Fort Myers center in January 2016.
(3)
Excludes the occupancy rate of the Fort Myers center which was sold on January 12, 2016.
(4)
Excludes the occupancy rate at our Barstow center which was sold on October 5, 2015. 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 3/31/2016


Unconsolidated joint venture properties
 
 
 
 
 
 
 
 
 
 
Location
Total GLA
3/31/16
 
% Occupied
3/31/16
 
% Occupied
12/31/15
 
% Occupied
9/30/15
 
% Occupied
6/30/15
 
% Occupied
3/31/15
Glendale, AZ (Westgate)
410,664

 
96
%
 
100
%
 
100
%
 
99
%
 
99
%
Charlotte, NC
397,839

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

 
99
%
 
99
%
 
99
%
 
96
%
 
N/A

Texas City, TX (Galveston/Houston)
352,705

 
97
%
 
99
%
 
99
%
 
100
%
 
98
%
National Harbor, MD
338,786

 
99
%
 
99
%
 
99
%
 
99
%
 
97
%
Ottawa, ON
316,494

 
95
%
 
97
%
 
97
%
 
95
%
 
92
%
Cookstown, ON
308,517

 
99
%
 
100
%
 
100
%
 
93
%
 
96
%
Bromont, QC
161,307

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

 
97
%
 
97
%
 
97
%
 
97
%
 
92
%
Total
2,779,369

 
96
%
 
98
%
 
97
%
 
96
%
 
95
%

(1)
Center opened in April 2015.




6
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2016


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 3/31/2016


Average Tenant Sales Per Square Foot by Outlet Center Ranking As of March 31, 2016(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
$
538

98
%
2,803

27
%
34
%
Centers 6 - 10
$
443

98
%
1,243

12
%
14
%
Centers 11 - 15
$
401

97
%
1,906

18
%
18
%
Centers 16 - 20
$
351

97
%
1,738

16
%
15
%
Centers 21 - 25
$
310

92
%
1,438

14
%
11
%
Centers 26 - 30
$
280

95
%
1,415

13
%
8
%
 
 
 
 
 
 
 
 
 
 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
$
538

98
%
2,803

27
%
34
%
Centers 1 - 10
$
504

98
%
4,046

39
%
48
%
Centers 1 - 15
$
469

98
%
5,952

57
%
66
%
Centers 1 - 20
$
440

98
%
7,690

73
%
81
%
Centers 1 - 25
$
420

97
%
9,128

87
%
92
%
Centers 1 - 30
$
401

97
%
10,543

100
%
100
%
 
 





Unconsolidated centers (4)
$
416

97
%
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; Hershey, PA; Locust Grove, GA; San Marcos, TX
 
Centers 16 - 20: Gonzales, LA; Howell, MI; Jeffersonville, OH; Park City, UT; Pittsburgh, PA
 
 
Centers 21 - 25: Blowing Rock, NC; Commerce II, GA; Foley, AL; Hilton Head II, SC; Ocean City, MD
 
Centers 26 - 30: Myrtle Beach 501, SC; 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 March 31, 2016 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, 2015.
 
 
 
 
 
 
 
(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 3/31/2016


Major Tenants (1) 
Ten Largest Tenants as of March 31, 2016
Tenant
# of
Stores

 
GLA

 
% of
Total GLA

The Gap, Inc.
83

 
883,868

 
7.7
%
Ascena Retail Group, Inc.
133

 
812,121

 
7.0
%
Nike, Inc.
36

 
387,854

 
3.4
%
PVH Corp.
61

 
364,365

 
3.2
%
V. F. Corporation
36

 
331,845

 
2.9
%
Ralph Lauren Corporation
35

 
323,266

 
2.8
%
G-III Apparel Group, Ltd.
64

 
304,166

 
2.6
%
Carter's, Inc.
57

 
254,359

 
2.2
%
Adidas AG
35

 
236,474

 
2.0
%
Hanes Brands
39

 
216,871

 
1.9
%
Total of All Listed Above
579

 
4,115,189

 
35.7
%
(1)
Excludes unconsolidated outlet centers. See table on page 4.


9
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2016


Lease Expirations as of March 31, 2016



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


10
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2016


Leasing Activity (1) (2)  
 
3/31/2016
 
6/30/2016
 
9/30/2016
 
12/31/2016
 
Year to Date
 
Prior
Year to
Date(3)
Re-tenanted Space :
 
 
 
 
 
 
 
 
 

 
 

Number of leases
62

 

 

 

 
62

 
69

Gross leasable area
185,245

 

 

 

 
185,245

 
262,689

New initial base rent per square foot
$
30.29

 

 

 

 
$
30.29

 
$
27.71

Prior expiring base rent per square foot
$
25.99

 

 

 

 
$
25.99

 
$
24.90

Percent increase
16.5
%
 

 

 

 
16.5
%
 
11.3
%
 
 
 
 
 
 
 
 
 
 
 


New straight line base rent per square foot
$
33.38

 

 

 

 
$
33.38

 
$
31.15

Prior straight line base rent per square foot
$
25.24

 

 

 

 
$
25.24

 
$
24.67

Percent increase
32.3
%
 

 

 

 
32.3
%
 
26.3
%
 
 
 
 
 
 
 
 
 
 
 


Renewed Space:
 
 
 
 
 
 
 
 
 
 


Number of leases
166

 

 

 

 
166

 
172

Gross leasable area
762,300

 

 

 

 
762,300

 
833,106

New initial base rent per square foot
$
24.69

 

 

 

 
$
24.69

 
$
24.94

Prior expiring base rent per square foot
$
22.78

 

 

 

 
$
22.78

 
$
22.38

Percent increase
8.4
%
 

 

 

 
8.4
%
 
11.5
%
 
 
 
 
 
 
 
 
 
 
 


New straight line base rent per square foot
$
25.91

 

 

 

 
$
25.91

 
$
26.53

Prior straight line base rent per square foot
$
21.96

 

 

 

 
$
21.96

 
$
21.74

Percent increase
18.0
%
 

 

 

 
18.0
%
 
22.0
%
 
 
 
 
 
 
 
 
 
 
 


Total Re-tenanted and Renewed Space (3):
 
 
 
 
 
 
 
 
 
 


Number of leases
228

 

 

 

 
228

 
241

Gross leasable area
947,545

 

 

 

 
947,545

 
1,095,795

New initial base rent per square foot
$
25.78

 

 

 

 
$
25.78

 
$
25.60

Prior expiring base rent per square foot
$
23.41

 

 

 

 
$
23.41

 
$
22.98

Percent increase
10.2
%
 

 

 

 
10.2
%
 
11.4
%
 
 
 
 
 
 
 
 
 
 
 


New straight line base rent per square foot
$
27.37

 

 

 

 
$
27.37

 
$
27.64

Prior straight line base rent per square foot
$
22.60

 

 

 

 
$
22.60

 
$
22.44

Percent increase
21.1
%
 

 

 

 
21.1
%
 
23.1
%
(1)
Excludes unconsolidated outlet centers. See table on page 4.
(2)
All 2016 information excludes the outlet center in Fort Myers, FL, which was sold on January 12, 2016.
(3)
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.



11
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2016

Consolidated Balance Sheets (dollars in thousands)
 
3/31/2016
 
12/31/2015
 
9/30/2015
 
6/30/2015
 
3/31/2015
Assets
 
 
 
 
 
 
 
 
 
Rental property
 
 
 
 
 
 
 
 
 
Land
$
235,622

 
$
240,267

 
$
225,306

 
$
217,994

 
$
217,994

Buildings, improvements and fixtures
2,219,955

 
2,249,417

 
2,173,499

 
2,078,946

 
1,950,092

Construction in progress
42,287

 
23,533

 
63,445

 
95,167

 
154,328

 
2,497,864

 
2,513,217

 
2,462,250

 
2,392,107

 
2,322,414

Accumulated depreciation
(749,325
)
 
(748,341
)
 
(727,921
)
 
(699,836
)
 
(680,739
)
Total rental property, net
1,748,539

 
1,764,876

 
1,734,329

 
1,692,271

 
1,641,675

Cash and cash equivalents
18,877

 
21,558

 
20,661

 
16,949

 
14,661

Restricted cash
—

 
121,306

 
42,904

 
—

 
—

Rental property held for sale
—

 
—

 
19,286

 
46,862

 
46,530

Investments in unconsolidated joint ventures
218,732

 
201,083

 
197,964

 
212,939

 
205,083

Deferred lease costs and other intangibles, net
123,404

 
127,089

 
130,390

 
133,909

 
137,478

Prepaids and other assets
81,054

 
78,913

 
74,577

 
74,393

 
71,924

Total assets (a)
$
2,190,606

 
$
2,314,825

 
$
2,220,111

 
$
2,177,323

 
$
2,117,351

Liabilities and Equity
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
Debt
 
 
 
 
 
 
 
 
 
Senior, unsecured notes, net
$
789,635

 
$
789,285

 
$
788,930

 
$
788,577

 
$
788,128

Unsecured term loans, net
258,540

 
265,832

 
265,674

 
265,500

 
265,325

Mortgages payable, net
167,603

 
310,587

 
280,594

 
275,463

 
284,126

Unsecured lines of credit, net
259,890

 
186,220

 
193,338

 
173,533

 
112,622

Total debt (a)
1,475,668

 
1,551,924

 
1,528,536

 
1,503,073

 
1,450,201

Accounts payable and accruals
67,608

 
97,396

 
90,506

 
83,787

 
80,835

Deferred financing obligation
—

 
28,388

 
28,388

 
28,388

 
28,388

Other liabilities
31,758

 
31,085

 
31,405

 
30,639

 
31,076

Total liabilities
1,575,034

 
1,708,793

 
1,678,835

 
1,645,887

 
1,590,500

Commitments and contingencies
—

 
—

 
—

 
—

 
—

Equity
 
 
 
 
 
 
 
 
 
Tanger Factory Outlet Centers, Inc.
 
 
 
 
 
 
 
 
 
Common shares
961

 
959

 
958

 
958

 
958

Paid in capital
808,779

 
806,379

 
802,638

 
798,587

 
794,652

Accumulated distributions in excess of net income
(195,654
)
 
(195,486
)
 
(256,180
)
 
(272,948
)
 
(270,124
)
Accumulated other comprehensive loss
(29,814
)
 
(36,715
)
 
(33,943
)
 
(22,470
)
 
(25,755
)
  Equity attributable to Tanger Factory Outlet
  Centers, Inc.
584,272

 
575,137

 
513,473

 
504,127

 
499,731

Equity attributable to noncontrolling interests
 
 
 
 
 
 
 
 
 
Noncontrolling interests in Operating Partnership
30,711

 
30,309

 
27,207

 
26,712

 
26,481

Noncontrolling interest in other consolidated partnerships
589

 
586

 
596

 
597

 
639

Total equity
615,572

 
606,032

 
541,276

 
531,436

 
526,851

Total liabilities and equity
$
2,190,606

 
$
2,314,825

 
$
2,220,111

 
$
2,177,323

 
$
2,117,351

(a)
In accordance with recent accounting guidance, "Simplifying the Presentation of Debt Issuance Costs", our deferred debt origination costs and related accumulated amortization previously recorded in the line item “deferred debt origination costs, net” have been reclassified from assets to the respective debt line items within the liabilities section in the consolidated balance sheet as of December 31, 2015.

12
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2016


Consolidated Statements of Operations (dollars and shares in thousands)
 
 
 
Three Months Ended
 
YTD
 
3/31/16
 
12/31/15
 
9/30/15
 
6/30/15
 
3/31/15
 
 
3/31/16
 
3/31/15
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Base rentals
$
72,623

 
$
73,889

 
$
75,841

 
$
72,329

 
$
67,629

 
 
$
72,623

 
$
67,629

Percentage rentals
2,150

 
3,261

 
2,625

 
2,042

 
2,229

 
 
2,150

 
2,229

Expense reimbursements
33,242

 
32,653

 
30,542

 
29,909

 
33,364

 
 
33,242

 
33,364

Management, leasing and other services
1,121

 
1,163

 
1,253

 
1,727

 
1,283

 
 
1,121

 
1,283

Other income
1,669

 
1,835

 
2,645

 
1,729

 
1,421

 
 
1,669

 
1,421

Total revenues
110,805

 
112,801

 
112,906

 
107,736

 
105,926

 
 
110,805

 
105,926

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property operating
37,874

 
37,582

 
36,231

 
34,958

 
37,732

 
 
37,874

 
37,732

General and administrative
11,565

 
10,038

 
11,514

 
11,612

 
11,305

 
 
11,565

 
11,305

Depreciation and amortization
26,567

 
26,890

 
28,785

 
24,272

 
23,989

 
 
26,567

 
23,989

Total expenses
76,006

 
74,510

 
76,530

 
70,842

 
73,026

 
 
76,006

 
73,026

Operating income
34,799

 
38,291

 
36,376

 
36,894

 
32,900

 
 
34,799

 
32,900

Other income/(expense)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
(14,884
)
 
(14,078
)
 
(13,933
)
 
(13,088
)
 
(13,089
)
 
 
(14,884
)
 
(13,089
)
Gain on sale of assets and interests in unconsolidated entities
4,887

 
86,506

 
20,215

 
—

 
13,726

 
 
4,887

 
13,726

Other nonoperating income (expense)
316

 
62

 
89

 
(493
)
 
306

 
 
316

 
306

Income before equity in earnings of unconsolidated joint ventures
25,118

 
110,781

 
42,747

 
23,313

 
33,843

 
 
25,118

 
33,843

Equity in earnings of unconsolidated joint ventures
3,499

 
3,182

 
3,713

 
2,046

 
2,543

 
 
3,499

 
2,543

Net income
28,617

 
113,963

 
46,460

 
25,359

 
36,386

 
 
28,617

 
36,386

Noncontrolling interests in Operating Partnership
(1,444
)
 
(5,799
)
 
(2,364
)
 
(1,313
)
 
(1,855
)
 
 
(1,444
)
 
(1,855
)
Noncontrolling interests in other consolidated partnerships
(23
)
 
(32
)
 
(21
)
 
435

 
(19
)
 
 
(23
)
 
(19
)
Net income attributable to Tanger Factory Outlet Centers, Inc.
27,150

 
108,132

 
44,075

 
24,481

 
34,512

 
 
27,150

 
34,512

Allocation to participating securities
(294
)
 
(1,198
)
 
(494
)
 
(308
)
 
(408
)
 
 
(294
)
 
(408
)
Net income available to common shareholders
$
26,856

 
$
106,934

 
$
43,581

 
$
24,173

 
$
34,104

 
 
$
26,856

 
$
34,104

Basic earnings per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
0.28

 
$
1.13

 
$
0.46

 
$
0.26

 
$
0.36

 
 
$
0.28

 
$
0.36

Diluted earnings per common share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
$
0.28

 
$
1.13

 
$
0.46

 
$
0.26

 
$
0.36

 
 
$
0.28

 
$
0.36

Weighted average common shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
94,944

 
94,768

 
94,746

 
94,741

 
94,536

 
 
94,944

 
94,536

Diluted
95,003

 
94,827

 
94,799

 
94,795

 
94,697

 
 
95,003

 
94,697


13
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2016


Funds from operations (FFO) and Funds available for distribution (FAD) Analysis (dollars and shares in thousands)
 
 
 
Three Months Ended
 
YTD
 
3/31/16
 
12/31/15
 
9/30/15
 
6/30/15
 
3/31/15
 
 
3/31/16
 
3/31/15
FFO:
 
 
 
 
 
 
 
 
 
 
 
 

 
 

Net income
$
28,617

 
$
113,963

 
$
46,460

 
$
25,359

 
$
36,386

 
 
$
28,617

 
$
36,386

Adjusted for -
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization of real estate assets - consolidated properties
26,205

 
26,531

 
28,428

 
23,919

 
23,637

 
 
26,205

 
23,637

Depreciation and amortization of real estate assets - unconsolidated joint ventures
5,339

 
5,528

 
5,411

 
5,038

 
4,076

 
 
5,339

 
4,076

Gain on sale of assets and interests in unconsolidated entities
(4,887
)
 
(86,506
)
 
(20,215
)
 
—

 
(13,726
)
 
 
(4,887
)
 
(13,726
)
FFO
55,274

 
59,516

 
60,084

 
54,316

 
50,373

 
 
55,274

 
50,373

FFO attributable to noncontrolling interests in other consolidated partnerships
(47
)
 
(57
)
 
(45
)
 
412

 
(42
)
 
 
(47
)
 
(42
)
Allocation to participating securities
(569
)
 
(625
)
 
(640
)
 
(583
)
 
(560
)
 
 
(569
)
 
(560
)
FFO available to common shareholders
$
54,658

 
$
58,834

 
$
59,399

 
$
54,145

 
$
49,771

 
 
$
54,658

 
$
49,771

FFO per common share
$
0.55

 
$
0.59

 
$
0.59

 
$
0.54

 
$
0.50

 
 
$
0.55

 
$
0.50

FAD available to common shareholders:
 
 
 
 
 
 
 
 
 
FFO available to common shareholders
$
54,658

 
$
58,834

 
$
59,399

 
$
54,145

 
$
49,771

 
 
$
54,658

 
$
49,771

Adjusted for -
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate depreciation excluded above
362

 
359

 
357

 
353

 
352

 
 
362

 
352

Amortization of finance costs
744

 
835

 
694

 
603

 
599

 
 
744

 
599

Amortization of net debt discount (premium)
959

 
191

 
139

 
(88
)
 
14

 
 
959

 
14

Amortization of share-based compensation
4,001

 
3,152

 
3,994

 
3,953

 
3,613

 
 
4,001

 
3,613

Straight line rent adjustment
(1,607
)
 
(1,605
)
 
(1,924
)
 
(1,549
)
 
(1,269
)
 
 
(1,607
)
 
(1,269
)
Market rent adjustment
663

 
337

 
825

 
383

 
916

 
 
663

 
916

2nd generation tenant allowances
(1,671
)
 
(3,960
)
 
(1,428
)
 
(4,128
)
 
(956
)
 
 
(1,671
)
 
(956
)
Capital improvements
(3,043
)
 
(1,231
)
 
(3,555
)
 
(4,558
)
 
(2,738
)
 
 
(3,043
)
 
(2,738
)
Adjustments from unconsolidated joint ventures
(384
)
 
(196
)
 
(506
)
 
(399
)
 
(479
)
 
 
(384
)
 
(479
)
FAD available to common shareholders
$
54,682

 
$
56,716

 
$
57,995

 
$
48,715

 
$
49,823

 
 
$
54,682

 
$
49,823

FAD per common share
0.55

 
$
0.57

 
$
0.58

 
$
0.49

 
$
0.50

 
 
$
0.55

 
$
0.50

Dividends per share
$
0.285

 
$
0.285

 
$
0.285

 
$
0.285

 
$
0.240

 
 
$
0.285

 
$
0.240

Special dividends per share
—

 
0.210

 
—

 
—

 
—

 
 
—

 
—

Total dividends per share
$
0.285

 
$
0.495

 
$
0.285

 
$
0.285

 
$
0.240

 
 
$
0.285

 
$
0.240

FFO payout ratio (1)
52
%
 
48
%
 
48
%
 
53
%
 
48
%
 
 
52
%
 
48
%
FAD payout ratio (1)
52
%
 
50
%
 
49
%
 
58
%
 
48
%
 
 
52
%
 
48
%
Diluted weighted average common shares
100,056

 
99,905

 
99,877

 
99,873

 
99,775

 
 
100,056

 
99,775

(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 3/31/2016


Unconsolidated Joint Venture Information

The following table details certain information as of March 31, 2016, except for Net Operating Income ("NOI") which is for the three months ended March 31, 2016, about various unconsolidated real estate joint ventures in which we have an ownership interest (dollars in millions):
Joint Venture
 
Center Location
 
Tanger's Ownership %
 
Square Feet
 
Tanger's Share of Total Assets
 
Tanger's Share of NOI
 
Tanger's Share of Net Debt (1)
Charlotte
 
Charlotte, NC
 
50.0
%
 
397,839

 
$
43.4

 
$
1.8

 
$
44.8

 
 
 
 
 
 
 
 
 
 
 
 
 
Columbus (2)
 
Columbus, OH
 
50.0
%
 
—

 
35.2

 
—

 
—

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

 
30.3

 
1.1

 
32.4

 
 
 
 
 
 
 
 
 
 
 
 
 
National Harbor
 
National Harbor, MD
 
50.0
%
 
338,786

 
49.7

 
1.4

 
42.9

 
 
 
 
 
 
 
 
 
 
 
 
 
RioCan Canada (3)
 
Various
 
50.0
%
 
902,089

 
135.0

 
1.4

 
6.0

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

 
97.0

 
3.2

 
46.8

 
 
 
 
 
 
 
 
 
 
 
 
 
Westgate
 
Glendale, AZ
 
58.0
%
 
410,664

 
48.9

 
1.5

 
35.9

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
$
439.5

 
$
10.4

 
$
208.8

(1)
Net of debt origination costs and premiums
(2)
Center is currently under construction.
(3)
Includes a 161,307 square foot center in Bromont, Quebec; a 308,517 square foot center in Cookstown, Ontario; a 316,494 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.
(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's Ownership % column, which states our legal interest in this venture. As of March 31, 2016, 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.










15
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2016


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 3/31/2016


Non-GAAP Pro Rata Balance Sheet as of March 31, 2016 (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
$
235,622

 
$
—

 
$
56,849

 
$
292,471

Buildings, improvements and fixtures
2,219,955

 
(160
)
 
342,848

 
2,562,643

Construction in progress
42,287

 
—

 
42,763

 
85,050

 
2,497,864

 
(160
)
 
442,460

 
2,940,164

Accumulated depreciation
(749,325
)
 
—

 
(36,992
)
 
(786,317
)
Total rental property, net
1,748,539

 
(160
)
 
405,468

 
2,153,847

Cash and cash equivalents
18,877

 
—

 
14,952

 
33,829

Investments in unconsolidated joint ventures
218,732

 
(429
)
 
(218,303
)
 
—

Deferred lease costs and other intangibles, net
123,404

 
—

 
9,905

 
133,309

Prepaids and other assets
81,054

 
—

 
7,088

 
88,142

Total assets
$
2,190,606

 
$
(589
)
 
$
219,110

 
$
2,409,127

Liabilities and Equity
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
Debt
 
 
 
 
 
 
 
Senior, unsecured notes, net
$
789,635

 
$
—

 
$
—

 
$
789,635

Unsecured term loans, net
258,540

 
—

 
—

 
258,540

Mortgages payable, net
167,603

 
—

 
208,774

 
376,377

Unsecured lines of credit, net
259,890

 
—

 
—

 
259,890

Total debt
1,475,668

 
—

 
208,774

 
1,684,442

Accounts payable and accruals
67,608

 
—

 
13,909

 
81,517

Other liabilities
31,758

 
—

 
(3,573
)
 
28,185

Total liabilities
1,575,034

 
—

 
219,110

 
1,794,144

Commitments and contingencies
—

 
—

 
—

 
—

Equity
 
 
 
 
 
 
 
Tanger Factory Outlet Centers, Inc.
 
 
 
 
 
 
 
Common shares
961

 
—

 
—

 
961

Paid in capital
808,779

 
—

 
—

 
808,779

Accumulated distributions in excess of net income
(195,654
)
 
—

 
—

 
(195,654
)
Accumulated other comprehensive loss
(29,814
)
 
—

 
—

 
(29,814
)
Equity attributable to Tanger Factory Outlet Centers, Inc.
584,272

 
—

 
—

 
584,272

Equity attributable to noncontrolling interests
 
 
 
 
 
 
 
Noncontrolling interests in Operating Partnership
30,711

 
—

 
—

 
30,711

Noncontrolling interest in other consolidated partnerships
589

 
(589
)
 
—

 
—

Total equity
615,572

 
(589
)
 
—

 
614,983

Total liabilities and equity
$
2,190,606

 
$
(589
)
 
$
219,110

 
$
2,409,127




17
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2016


Non-GAAP Pro Rata Statement of Operations year to date March 31, 2016 (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
$
72,623

 
$
(3
)
 
$
10,098

 
$
82,718

Percentage rentals
2,150

 
—

 
493

 
2,643

Expense reimbursements
33,242

 
(2
)
 
5,256

 
38,496

Management, leasing and other services
1,121

 
—

 
—

 
1,121

Other income
1,669

 
—

 
398

 
2,067

Total revenues
110,805

 
(5
)
 
16,245

 
127,045

Expense
 
 
 
 
 
 
 
Property operating
37,874

 
(1
)
 
5,755

 
43,628

General and administrative
11,565

 
—

 
64

 
11,629

Depreciation and amortization
26,567

 
(2
)
 
5,317

 
31,882

Total expenses
76,006

 
(3
)
 
11,136

 
87,139

Operating income
34,799

 
(2
)
 
5,109

 
39,906

Other income/(expense)
 
 
 
 
 
 
 
Interest expense
(14,884
)
 
1

 
(1,633
)
 
(16,516
)
Gain on sale of assets and interests in unconsolidated entities
4,887

 
—

 
—

 
4,887

Other nonoperating income (expense)
316

 


 
1

 
317

Income before equity in earnings of unconsolidated joint ventures
25,118

 
(1
)
 
3,477

 
28,594

Equity in earnings of unconsolidated joint ventures
3,499

 
(22
)
 
(3,477
)
 
—

Net income
28,617

 
(23
)
 
—

 
28,594

Noncontrolling interests in Operating Partnership
(1,444
)
 
—

 
—

 
(1,444
)
Noncontrolling interests in other consolidated partnerships
(23
)
 
23

 
—

 
—

Net income attributable to Tanger Factory Outlet Centers, Inc.
27,150

 
—

 
—

 
27,150

Allocation to participating securities
(294
)
 
—

 
—

 
(294
)
Net income available to common shareholders
$
26,856

 
$
—

 
$
—

 
$
26,856



18
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2016


External Growth Pipeline Summary as of March 31, 2016
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

$
59.9

50%
$
—

$
—

$
17.5

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

91.3

26.4

100%
—

—

64.9

9.5% - 10.5%
Total New Developments
 
707

$
186.2

$
86.3

 
$
—

$
—

$
82.4

10.3%
 
 
 
 
 
 
 
 
 
 
(1)
Weighted average projected stabilized yield for projects under construction is calculated using the midpoint of the projected stabilized yield disclosed for each project.
(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 3/31/2016


Debt Outstanding Summary (dollars in thousands)
As of March 31, 2016
 
Principal
Balance
 
Stated
Interest Rate
 
Effective(1) Interest Rate
 
Maturity
Date
Unsecured debt:
 

 
 
 
 
 
 
Unsecured lines of credit (2)
$
263,700

 
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 note payable
10,000

 
1.50%

 
3.153%

 
6/30/2016
Net debt discounts and debt origination costs
(15,635
)
 
 

 
 
 
 
Total unsecured debt
$
1,308,065

 
 

 
 
 
 
Secured mortgage debt:
 
 
 
 
 
 
 
Atlantic City, NJ (4)
$
42,617

 
5.14% - 7.65%

 
5.05%

 
11/15/2021 - 12/8/2026
Foxwoods, CT (5)
70,250

 
LIBOR + 1.65%

 
 
 
12/5/2017
Southaven, MS (6)
52,717

 
LIBOR + 1.75%

 
 
 
4/29/2018
Debt premium and debt origination costs
2,019

 
 
 
 
 
 
Total secured mortgage debt
$
167,603

 
 
 
 
 
 
Tanger's share of unconsolidated JV debt:
 

 
 

 
 
 
 
Charlotte (7)
$
45,000

 
LIBOR + 1.45%

 
 
 
11/24/2018
Galveston/Houston (8)
32,500

 
LIBOR + 1.50%

 
 
 
7/1/2017
National Harbor (9)
43,500

 
LIBOR + 1.65%

 
 
 
11/13/2019
RioCan Canada(10)
5,671

 
5.75
%
 
4.18
%
 
5/10/2020
Savannah (11)
47,549

 
LIBOR + 1.65%

 
 
 
5/21/2017
Westgate (12)
35,960

 
LIBOR + 1.75%

 
 
 
6/27/2017
Debt premium and debt origination costs
(1,406
)
 
 
 
 
 
 
Total Tanger's share of unconsolidated JV debt
$
208,774

 
 

 
 
 
 
(1)
The effective interest rate excludes interest rate swap agreements that fix the base LIBOR rate at an average of 1.16% on notional amounts aggregating $325.0 million as follows:
(a)
Interest rate swaps entered into in October 2013 to hedge our variable interest rate exposure on notional amounts aggregating $150.0 million. These interest rate swap agreements fix the base LIBOR rate at an average of 1.30% through August 14, 2018, and
(b)
Interest rate swaps entered into in April 2016 to hedge our variable interest rate exposure on notional amounts aggregating $175.0 million. These interest rate swap agreements fix the base LIBOR rate at an average of 1.03% through January 1, 2021.



20
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2016


(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. The syndicated credit line may be increased to $1.0 billion through an accordion feature in certain circumstances. The unsecured lines of credit have an expiration date of October 29, 2019 with an option for a one year extension.

(3)
On April 13, 2016, the company amended the unsecured term loan to increase the size of the loan from $250 million to $325 million, extend the maturity date from February 23, 2019 to April 13, 2021, and reduce the LIBOR spread from LIBOR plus 105 basis points to LIBOR plus 95 basis points. The additional loan proceeds of $75 million were used to pay down balances under the Operating Partnership's unsecured lines of credit.

(4)
Represents mortgages assumed in the acquisition of this property.

(5)
Represents 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)
Represents 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 March 31, 2016, the principal balance on the loan was $52.7 million. The additional $7.3 million is available to fund the remaining construction costs to complete the center which opened in November 2015.

(7)
Represents a mortgage loan of $90.0 million. The loan initially matures on November 24, 2018, with one one -year extension option. As of March 31, 2016, the principal balance on the loan was $90.0 million.

(8)
Represents 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 March 31, 2016, the principal balance on the loan was $65.0 million. The additional $5.0 million is available for future expansion.

(9)
Represents a construction loan with with the ability to borrow up to $87.0 million. As of March 31, 2016, the principal balance on the loan was $87.0 million.

(10)
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 $11.3 million and matures on May 10, 2020.

(11)
Represents a construction loan with a with the ability to borrow up 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 March 31, 2016, the principal balance on the loan was $95.1 million. The additional $5.8 million is available for construction of the approximately 42,000 square foot expansion that is currently in progress.

(12)
Represents a construction loan with with the ability to borrow up to $62.0 million. On April 1, 2015, the joint venture exercised the option to extend the maturity date of the loan to June 27, 2017. As of March 31, 2016, the principal balance on the loan was $62.0 million.


21
Supplemental Operating and Financial Data for the
Quarter Ended 3/31/2016


Future Scheduled Principal Payments (dollars in thousands)
As of March 31, 2016
Year
Tanger
Consolidated
Payments
 
Tanger's Share
of Unconsolidated
JV Payments
 
Total
Scheduled
Payments
2016
$
12,148

 
$
198

 
$
12,346

2017
73,258

 
116,287

 
189,545

2018
55,900

 
45,294

 
101,194

2019 (1)
517,069

 
43,811

 
560,880

2020
303,566

 
4,590

 
308,156

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

 
$
1,489,284

 
$
210,180

 
$
1,699,464

Net debt discounts and debt origination costs
(13,616
)
 
(1,406
)
 
(15,022
)
 
$
1,475,668

 
$
208,774

 
$
1,684,442

(1)
Includes principal balance of $263.7 million outstanding under the company's unsecured lines of credit.
Senior Unsecured Notes Financial Covenants (1) 
As of March 31, 2016
 
Required
 
Actual
 
Compliance
Total Consolidated Debt to Adjusted Total Assets
<60%
 
49
%
 
Yes
Total Secured Debt to Adjusted Total Assets
<40%
 
6
%
 
Yes
Total Unencumbered Assets to Unsecured Debt
>150%
 
187
%
 
Yes
Consolidated Income Available for Debt Service to Annual Debt Service Charge
>1.5
 
5.26

 
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 3/31/2016


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 3/31/2016

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