Tanger Reports First Quarter 2013 Results

                  Tanger Reports First Quarter 2013 Results

Funds From Operations Per Share Increases 16.7%

Consolidated Portfolio 98.0% Occupied

PR Newswire

GREENSBORO, N.C., April 30, 2013

GREENSBORO, N.C., April30, 2013 /PRNewswire/ --Tanger Factory Outlet
Centers, Inc. (NYSE: SKT) today reported funds from operations ("FFO")
available to common shareholders, a widely accepted supplemental measure of
REIT performance, increased 15.1% for the three months ended March31, 2013 to
$41.0 million, compared to FFO of $35.6 million for the three months ended
March31, 2012. On a per share basis, FFO for the three months ended
March31, 2013 increased 16.7% to $0.42 per share, compared to $0.36 per share
for the three months ended March31, 2012.

"2013 is off to a healthy start, with FFO growth driven by the expansion of
our footprint by 8.1% as a result of the addition of 4 new joint venture
properties in the U.S. and Canada during the fourth quarter of last year and a
3.9% increase in same center net operating income throughout our consolidated
portfolio. In addition, quarter-end occupancy increased 70 basis points year
over year to 98.0%, compared to 97.3% last year," commented Steven B. Tanger,
President and Chief Executive Officer. "Earlier this month, we announced a
7.1% increase in the annual dividend on our common shares, which marked our
twentieth consecutive annual increase," he added.

FFO for all periods shown was impacted by a number of charges as described in
the summary below (in thousands, except per share amounts):

                                                           Three months ended
                                                           March 31,
                                                           2013      2012
FFO as reported                                            $ 41,013  $ 35,640
As adjusted for:
 Acquisition costs                                         179       —
 AFFO adjustments from unconsolidated joint ventures ^(1)  211       686
 Impact of above adjustments to the allocation of earnings (5)       (6)
 to participating securities
Adjusted FFO ("AFFO")                                      $ 41,398  $ 36,320
Diluted weighted average common shares                     98,798    98,690
AFFO per share                                             $ 0.42    $ 0.37

(1) Includes our share of acquisition costs, abandoned development costs and
gain on early extinguishment of debt from unconsolidated joint ventures.

Net income available to common shareholders for the three months ended
March31, 2013 increased 91.3% to $15.2 million or $0.16 per share, as
compared to net income of $8.0 million, or $0.09 per share for the three
months ended March31, 2012. Net income available to common shareholders for
the above periods was also impacted by the charges described above.

Net income, FFO and AFFO per share are on a diluted basis. FFO and AFFO are
supplemental non-GAAP financial measures used in the real estate industry to
measure and compare the operating performance of real estate companies.
Complete reconciliations containing adjustments from GAAP net income to FFO
and to AFFO are included in this release.

First Quarter Highlights

  oSame center net operating income increased 3.9% during the quarter,
    marking the 33rd consecutive quarter of same center net operating income
    growth
  o21.2% blended increase in average base rental rates on renewed and
    released space throughout the consolidated portfolio (23.3% excluding
    approximately 61,000 square feet of space released to magnet tenants to
    upsize existing high performing stores)
  oPeriod-end consolidated portfolio occupancy rate of 98.0% at March31,
    2013, up from 97.3% at March31, 2012
  oComparable tenant sales for the consolidated portfolio increased 2.3% to
    $380 per square foot for the twelve months ended March31, 2013 (and
    increased 3.2% excluding 8 centers that experienced closings of a day or
    more related to Hurricane Sandy during the fourth quarter of 2012)
  oComparable tenant sales for the consolidated portfolio increased 4.9% for
    the three months ended March31, 2013
  oDebt-to-total market capitalization ratio of 23.3% as of March31, 2013,
    compared to 26.1% last year
  oInterest coverage ratio of 3.95 times, compared to 3.90 times last year
  oTotal market capitalization increased 17.6% to $4.7 billion from $4.0
    billion last year
  oRaised the quarterly common share cash dividend by 7.1% on April 4, 2013,
    from $0.21 to $0.225, $0.90 per share annualized, representing the 20th
    consecutive year of increased cash dividends
  oCompleted an approximately 40,000 sf expansion on Tanger Outlets Gonzales
    in Gonzales, Louisiana
  oAnnounced plans to form a partnership with The Peterson Companies for a
    proposed development of a new Tanger Outlet Center in Clarksburg,
    Maryland, located 27 miles northwest of Washington, D.C. and 36 miles west
    of Baltimore

Cash Dividend Increased

On April 4, 2013, Tanger announced that its Board of Directors approved a 7.1%
increase in the annual cash dividend on its common shares from $0.84 per share
to $0.90 per share. Simultaneously, the Board of Directors declared a
quarterly dividend of $0.225 per share for the first quarter ended March 31,
2013, which will be payable on May 15, 2013 to holders of record on April 30,
2013. The company has paid cash dividends each quarter and has raised its
dividend each year since becoming a public company in May 1993.

Balance Sheet Summary

As of March31, 2013, Tanger had a total market capitalization of
approximately $4.7 billion including $1.1 billion of debt outstanding,
equating to a 23.3% debt-to-total market capitalization ratio and the company
had $174.9 million outstanding on its $520.0 million in available unsecured
lines of credit. During the first quarter of 2013, Tanger maintained an
interest coverage ratio of 3.95 times.

North American Portfolio Drives Operating Results

During the first quarter of 2013, Tanger executed 321 leases, totaling
1,429,000 square feet throughout its consolidated portfolio. Lease renewals
accounted for 1,135,000 square feet, which generated an 18.0% increase in
average base rental rates.The remaining 294,000 square feet was released at
an increase in average base rental rates of 32.2%. Excluding approximately
61,000 square feet of space released to magnet tenants to upsize existing high
performing stores, Tanger achieved an increase in average base rental rates of
46.5% on the remaining 233,000 square feet of released space.

Consolidated portfolio same center net operating income increased 3.9% during
the three months ended March31, 2013. Comparable tenant sales for the
consolidated portfolio for the twelve months ended March31, 2013 increased
2.3% to $380 per square foot. For the three months ended March31, 2013,
consolidated comparable tenant sales increased 4.9%. During the fourth
quarter of 2012, approximately 25% of the company's consolidated portfolio was
affected by closings related to Hurricane Sandy, including Atlantic City, New
Jersey; Kittery, Maine; Nags Head, North Carolina; Ocean City, Maryland;
Rehoboth Beach, Delaware; Riverhead, New York; Tilton, New Hampshire and
Westbrook, Connecticut. Excluding these properties, reported tenant
comparable sales for Tanger's consolidated portfolio increased 3.2% for the
twelve months ended March31, 2013.

Investment Activities Provide Potential Future Growth

In early April 2013, Tanger Outlets Gonzales hosted grand opening festivities
as this small expansion project neared completion and the first new tenants
opened for business. The center was originally developed by Tanger in 1992,
and this fully-leased expansion adds approximately 40,000 square feet and
enhances the tenant mix of the property with the addition of great brands
including American Eagle, Ann Taylor LOFT, Brooks Brothers, J.Crew, Talbots,
Under Armour, and others.

Currently under construction, Tanger Outlets National Harbor will be the next
Tanger Outlet Center to be delivered to tenants and shoppers. Tanger and its
50/50 joint venture partner, The Peterson Companies, broke ground on the
project on November29, 2012 and expect to open the property in time for the
2013 holiday shopping season. Located within the National Harbor waterfront
resort in the Washington D.C. Metro area, the center will be accessible from
I-95, I-295, I-495, and the Woodrow Wilson Bridge. The nation's capital
welcomes approximately 33 million tourist visitors annually. When complete,
the center will include approximately 340,000 square feet and feature
approximately 80 brand name and designer outlet stores.

Tanger has a robust pipeline of several other development sites for which
current predevelopment activities are ongoing. These projects include planned
new developments at Foxwoods Resort Casino in Mashantucket, Connecticut; in
Charlotte, North Carolina; Columbus, Ohio; Scottsdale, Arizona; and Kanata,
Ontario in the Ottawa market, as well as planned expansions of existing
assets in Sevierville, Tennessee; Park City, Utah; Cookstown, Ontario in the
northern Toronto market; and in Saint-Sauveur in the Montreal, Quebec market.
Adding to the pipeline for future development, Tanger announced on April 16,
2013 plans to form a partnership with The Peterson Companies for a proposed
development of a new Tanger Outlet Center in Clarksburg, Maryland, located 27
miles northwest of Washington, D.C. and 36 miles west of Baltimore.

 Tanger Expects Solid FFO Per Share In 2013

Based on Tanger's internal budgeting process, the company's view on current
market conditions, and the strength and stability of its core portfolio,
management currently believes its net income available to common shareholders
for 2013 will be between $0.77 and $0.81 per share and its FFO available to
common shareholders for 2013 will be between $1.77 and $1.81 per share.

The company's earnings estimates reflect a projected increase in same-center
net operating income of approximately 4%, and average general and
administrative expense of approximately $9.5 million to $10.0million per
quarter. The company's estimates do not include the impact of any rent
termination fees, any potential refinancing transactions, the sale of any out
parcels of land, or the sale or acquisition of any properties. The following
table provides a reconciliation of estimated diluted net income per share to
estimated diluted FFO per share:

For the year ended December 31, 2013:
                                                          Low Range High Range
Estimated diluted net income per share                    $0.77     $0.81
Noncontrolling interest, gain/loss on acquisition of real
    estate, depreciation and amortization uniquely
    significant to real estate including noncontrolling
    interest share and our share of joint ventures        $1.00     $1.00
Estimated diluted FFO per share                           $1.77     $1.81

First Quarter Conference Call

Tanger will host a conference call to discuss its first quarter 2013 results
for analysts, investors and other interested parties on Wednesday, May 1,
2013, at 10 a.m. eastern daylight time. To access the conference call,
listeners should dial 1-877-277-5113 and request to be connected to the Tanger
Factory Outlet Centers First Quarter 2013 Financial Results call.
Alternatively, the call will be web cast by SNL IR Solutions and can be
accessed at Tanger Factory Outlet Centers, Inc.'s web site by clicking the
Investor Relations link at www.tangeroutlet.com. A telephone replay of the
call will be available from May 1, 2013 at 1:00 p.m. through 11:59 p.m., May
8, 2013 by dialing 1-855-859-2056, conference ID # 31602091. An online
archive of the broadcast will also be available through May 8, 2013.

About Tanger Factory Outlet Centers

Tanger Factory Outlet Centers, Inc. (NYSE:SKT), is a publicly-traded REIT
headquartered in Greensboro, North Carolina that presently operates and owns,
or has an ownership interest in, a portfolio of 43 upscale outlet shopping
centers in 26 states coast to coast and in Canada, totaling approximately 12.9
million square feet leased to over 2,700 stores operated by more than 460
different brand name companies. More than 180 million shoppers visit Tanger
Factory Outlet Centers, Inc. annually. Tanger is filing a Form 8-K with the
Securities and Exchange Commission that includes a supplemental information
package for the quarter ended March31, 2013. For more information on Tanger
Outlet Centers, call 1-800-4TANGER or visit the company's web site at
www.tangeroutlet.com.

This news release contains forward-looking statements within the meaning of
federal securities laws.These statements include, but are not limited to,
estimates of future net income per share, FFO per share, same center net
operating income and general and administrative expenses, as well as other
statements regarding plans for new developments and expansions, the expected
timing of the commencement of construction and the grand openings of the
current developments, the renewal and re-tenanting of space, tenant sales and
sales trends, interest rates, coverage of the current dividend and
management's beliefs, plans, estimates, intentions, and similar statements
concerning anticipated future events, results, circumstances, performance or
expectations that are not historical facts.

These forward-looking statements are 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 in the United States and Canada,
the company's ability to meet its obligations on existing indebtedness or
refinance existing indebtedness on favorable terms, the availability and cost
of capital, whether projects in our pipeline convert into successful
developments, the company's ability to lease its properties, the company's
ability to implement its plans and strategies for joint venture properties
that it does not fully control, the company's inability to collect rent due to
the bankruptcy or insolvency of tenants or otherwise, and competition.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.

CONTACT:
Frank C. Marchisello, Jr.
Executive Vice President and CFO
(336) 834-6834

TANGER FACTORY OUTLET CENTERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)



                                                          Three months ended
                                                          March 31,
                                                          2013       2012
REVENUES
Base rentals (a)                                          $ 59,244   $ 57,219
Percentage rentals                                        2,017      1,744
Expense reimbursements                                    25,306     23,673
Other income                                              2,122      1,607
Total revenues                                            88,689     84,243
EXPENSES
Property operating                                        28,135     26,088
General and administrative                                9,572      10,020
Acquisition costs (b)                                     179        —
Depreciation and amortization                             22,288     25,515
Total expenses                                            60,174     61,623
Operating income                                          28,515     22,620
Interest expense                                          12,876     12,334
Income before equity in earnings (losses) of              15,639     10,286
unconsolidated joint ventures
Equity in earnings (losses) of unconsolidated joint       590        (1,452)
ventures
Net income                                                16,229     8,834
Noncontrolling interests in Operating Partnership         (789)      (713)
Noncontrolling interests in other consolidated            (1)        7
partnerships
Net income attributable to Tanger Factory Outlet          15,439     8,128
Centers, Inc.
Allocation of earnings to participating securities        (194)      (158)
Net income available to common shareholders of
                                                          $ 15,245   $ 7,970
Tanger Factory Outlet Centers, Inc.
Basic earnings per common share:
Net income                                                $ 0.16     $ 0.09
Diluted earnings per common share:
Net income                                                $ 0.16     $ 0.09

a. Includes straight-line rent and market rent adjustments of $1,228 and
$1,345 for the three months ended March31, 2013 and 2012, respectively.

b. Represents potential acquisition related expenses incurred for the three
months ended March31, 2013.



TANGER FACTORY OUTLET CENTERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(Unaudited)



                                                    March 31,     December31,
                                                    2013          2012
ASSETS
Rental property
Land                                                $ 148,002     $ 148,002
Buildings, improvements and fixtures                1,802,160     1,796,042
Construction in progress                            6,336         3,308
                                                    1,956,498     1,947,352
Accumulated depreciation                            (600,713)     (582,859)
Total rental property, net                          1,355,785     1,364,493
Cash and cash equivalents                           2,691         10,335
Investments in unconsolidated joint ventures        133,982       126,632
Deferred lease costs and other intangibles, net     97,328        101,040
Deferred debt origination costs, net                8,534         9,083
Prepaids and other assets                           63,353        60,842
Total assets                                        $ 1,661,673   $ 1,672,425
LIABILITIES AND EQUITY
Liabilities
Debt
 Senior, unsecured notes (net of discount of $1,897 $ 548,103     $ 548,033
 and $1,967, respectively)
 Unsecured term loans (net of discount of $509 and  259,491       259,453
 $547, respectively)
 Mortgages payable (including premium of $6,085 and 105,346       107,745
 $6,362, respectively)
 Unsecured lines of credit                          174,917       178,306
Total debt                                          1,087,857     1,093,537
Construction trade payables                         7,744         7,084
Accounts payable and accrued expenses               37,957        41,149
Other liabilities                                   16,676        16,780
Total liabilities                                   1,150,234     1,158,550
Commitments and contingencies
Equity
Tanger Factory Outlet Centers, Inc.
 Common shares, $.01 par value, 300,000,000 shares
 authorized, 94,415,137 and 94,061,384 shares       944           941
 issued and outstanding at March 31, 2013 and
 December 31, 2012, respectively
 Paid in capital                                  768,702       766,056
Accumulated distributions in excess of net income   (289,880)     (285,588)
Accumulated other comprehensive income              1,179         1,200
Equity attributable to Tanger Factory Outlet        480,945       482,609
Centers, Inc.
Equity attributable to noncontrolling interests
Noncontrolling interests in Operating Partnership   24,184        24,432
Noncontrolling interests in other consolidated      6,310         6,834
partnerships
Total equity                                        511,439       513,875
Total liabilities and equity                        $ 1,661,673   $ 1,672,425



TANGER FACTORY OUTLET CENTERS, INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(in thousands, except per share, state and center information)
(Unaudited)



                                                        Three months ended
                                                        March 31,
                                                        2013        2012
FUNDS FROM OPERATIONS (a)
Net income                                              $ 16,229    $ 8,834
Adjusted for:
Depreciation and amortization uniquely significant to   22,043      25,301
real estate - consolidated
Depreciation and amortization uniquely significant to   3,173       1,815
real estate - unconsolidated joint ventures
Funds from operations (FFO)                             41,445      35,950
FFO attributable to noncontrolling interests in other   (7)         (2)
consolidated partnerships
Allocation of earnings to participating securities      (425)       (308)
Funds from operations available to common shareholders  $ 41,013    $ 35,640
Funds from operations available to common shareholders  $ 0.42      $ 0.36
per share - diluted
WEIGHTED AVERAGE SHARES
Basic weighted average common shares                    93,132      89,671
Effect of notional units                                805         1,096
Effect of outstanding options                           106         65
    Diluted weighted average common shares (for         94,043      90,832
    earnings per share computations)
Exchangeable operating partnership units (b)            4,755       7,858
    Diluted weighted average common shares (for funds   98,798      98,690
    from operations per share computations)
OTHER INFORMATION
Gross leasable area open at end of period -
Consolidated                                            10,784      10,726
Partially owned - unconsolidated                        2,127       1,193
Outlet centers in operation at end of period -
Consolidated                                            36          36
Partially owned - unconsolidated                        7           3
States operated in at end of period (c)                 24          24
Occupancy at end of period (c)                          98.0     %  97.3     %



a. FFO is a non-GAAP financial measure. The most directly comparable GAAP
measure is net income (loss), to which it is reconciled. We believe that for
a clear understanding of our operating results, FFO should be considered along
with net income as presented elsewhere in this report. FFO is presented
because it is a widely accepted financial indicator used by certain investors
and analysts to analyze and compare one equity REIT with another on the basis
of operating performance. FFO is generally defined as net income (loss),
computed in accordance with generally accepted accounting principles, before
extraordinary items and gains (losses) on sale or disposal of depreciable
operating properties, plus depreciation and amortization uniquely significant
to real estate, impairment losses on depreciable real estate of consolidated
real estate and after adjustments for unconsolidated partnerships and joint
ventures, including depreciation and amortization, and impairment losses on
investments in unconsolidated joint ventures driven by a measurable decrease
in the fair value of depreciable real estate held by the unconsolidated joint
ventures. We caution that the calculation of FFO may vary from entity to
entity and as such the presentation of FFO by us may not be comparable to
other similarly titled measures of other reporting companies. FFO does not
represent net income or cash flow from operations as defined by accounting
principles generally accepted in the United States of America and should not
be considered an alternative to net income as an indication of operating
performance or to cash flows from operations as a measure of liquidity. FFO
is not necessarily indicative of cash flows available to fund dividends to
shareholders and other cash needs.

b. The exchangeable operating partnership units (noncontrolling interest in
operating partnership) are not dilutive on earnings per share computed in
accordance with generally accepted accounting principles.

c. Excludes the centers in which we have ownership interests in but are held
in unconsolidated joint ventures.

SOURCE Tanger Factory Outlet Centers, Inc.

Website: http://www.tangeroutlet.com
 
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