Tanger Reports Second Quarter 2013 Results

                  Tanger Reports Second Quarter 2013 Results

Funds From Operations Per Share Increases 10.3%

Consolidated Portfolio 98.3% Occupied

PR Newswire

GREENSBORO, N.C., July 30, 2013

GREENSBORO, N.C., July30, 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 10.3% for the three months ended June30, 2013 to $42.5
million, compared to FFO of $38.6 million for the three months ended June30,
2012. On a per share basis, FFO for the three months ended June30, 2013
increased 10.3% to $0.43 per share, compared to $0.39 per share for the three
months ended June30, 2012. For the six months ended June30, 2013, FFO
increased 12.6% to $83.6 million, or $0.85 per share, as compared to FFO of
$74.2 million, or $0.75 per share, for the six months ended June30, 2012.

(Logo: http://photos.prnewswire.com/prnh/20120907/CL70706LOGO-b)

"Credit ratings upgrades to BBB+ by Standard & Poor's and Baa1 by Moody's
Investor Service were major second quarter highlights for Tanger. We are
proud to have been able to deliver double digit FFO growth while maintaining a
strong balance sheet. This growth was driven both by solid internal
performance, as evidenced by an increase in same center net operating income
of 4.5% during the second quarter, and the incremental income in 2013 from the
four new properties added to the portfolio last year," commented Steven B.
Tanger, President and Chief Executive Officer. "During the quarter, we broke
ground on two additional projects. Tanger Outlets Ottawa , our first Canadian
ground up development, and a major expansion of Tanger Outlets Cookstown will
further the presence of the Tanger Outlets brand in the Canadian marketplace,"
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   Six months ended
                                      June 30,             June 30,
                                      2013      2012       2013      2012
FFO as reported                       $ 42,547  $ 38,586   $ 83,559  $ 74,227
As adjusted for:
 Acquisition costs                    252       —          431       —
 AFFO adjustments from unconsolidated 330       206        541       892
 joint ventures ^(1)
 Impact of above adjustments to the
 allocation of earnings to            (7)       (2)        (11)      (9)
 participating securities
Adjusted FFO ("AFFO")                 $ 43,122  $ 38,790   $ 84,520  $ 75,110
Diluted weighted average common       98,955    98,812     98,859    98,702
shares
AFFO per share                        $ 0.44    $ 0.39     $ 0.85    $ 0.76

(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
June30, 2013 increased 44.7% to $16.7 million, or $0.18 per share, as
compared to net income of $11.5 million, or $0.12 per share for the three
months ended June30, 2012. For the six months ended June30, 2013, net
income available to common shareholders increased 63.8% to $31.9 million, or
$0.34 per share, as compared to net income available to common shareholders of
$19.5 million, or $0.21 per share, for the six months ended June30, 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.

Second Quarter Highlights

  oSame center net operating income increased 4.5% during the quarter,
    marking the 34th consecutive quarter of same center net operating income
    growth
  oYear-to-date blended increase in average base rental rates on space
    renewed and released throughout the consolidated portfolio of 22.1%
  oPeriod-end consolidated portfolio occupancy rate of 98.3% at June30, 2013
  oComparable tenant sales for the consolidated portfolio increased 2.3% to
    $384 per square foot for the twelve months ended June30, 2013 (and
    increased 3.1% excluding 8 centers that experienced closings of a day or
    more related to Hurricane Sandy during the fourth quarter of 2012)
  oCredit ratings upgraded by both Moody's and Standard & Poor's
  oDebt-to-total market capitalization ratio of 25.3% as of June30, 2013
  oInterest coverage ratio of 4.15 times, compared to 4.08 times last year
  oTotal market capitalization increased 5.2% to $4.4 billion from $4.2
    billion on June30, 2012
  oCommenced construction of Tanger Outlets Ottawa on May15, 2013
  oCommenced construction to expand Tanger Outlets Cookstown on May16, 2013
  oCompleted mortgage financing of Tanger Outlets Texas City on July1, 2013

Balance Sheet Summary

As of June30, 2013, Tanger had a total market capitalization of approximately
$4.4 billion including $1.1 billion of debt outstanding, equating to a 25.3%
debt-to-total market capitalization ratio. The company had $213.1 million
outstanding on its $520.0 million in available unsecured lines of credit.
During the second quarter of 2013, Tanger maintained an interest coverage
ratio of 4.15 times.

Tanger Outlets Texas City, which opened in the Houston market October19,
2012, was initially fully funded with equity contributed to the joint venture
by Tanger and its 50/50 partner, Simon Property Group. On July1, 2013, the
joint venture closed on a mortgage loan secured by the property. The joint
venture received total loan proceeds of $65 million and distributed the
proceeds equally to the partners. Tanger used its share of the proceeds to
reduce amounts outstanding under its unsecured lines of credit. The mortgage
loan requires interest-only payments at 150 basis points over LIBOR and
matures July1, 2017, with the option to extend the maturity for one
additional year.

North American Portfolio Drives Operating Results

During the first six months of 2013, Tanger executed 381 leases totaling
1,674,000 square feet throughout its consolidated portfolio. Lease renewals
accounted for 1,288,000 square feet, which generated an 18.5% increase in
average base rental rates and represents 66.0% of the space originally
scheduled to expire in 2013. Base rental rate increases on re-tenanted space
during the first six months averaged 32.9% and accounted for the remaining
386,000 square feet.

Consolidated portfolio same center net operating income increased 4.2% during
the six months ended June30, 2013. For the second quarter of 2013,
consolidated portfolio same center net operating income increased 4.5%.
Comparable tenant sales for the consolidated portfolio for the twelve months
ended June30, 2013 increased 2.3% to $384 per square foot. For the three
months ended June30, 2013, consolidated comparable tenant sales increased
1.3%. During the fourth quarter of 2012, approximately 25% of the company's
consolidated portfolio was affected by closings related to Hurricane Sandy.
Excluding these properties, reported tenant comparable sales for Tanger's
consolidated portfolio increased 3.1% for the twelve months ended June30,
2013.

Investment Activities Provide Potential Future Growth

Construction is currently underway on four Tanger Outlet Centers projects,
including two new developments and two expansions. On May 15, 2013, the
company and its 50/50 co-owner, RioCan Real Estate Investment Trust, broke
ground on Tanger Outlets Ottawa, the first ground up development of a Tanger
Outlet Center in Canada. Ottawa is the nation's capital and the fourth
largest city in the country, with 1.2 million residents and 7.5 million annual
visitors. Located in suburban Kanata off the TransCanada Highway (Highway
417) at Palladium Drive, the 303,000 square foot center will feature
approximately 80 brand name and designer outlet stores and is currently
expected to open in the third quarter of 2014.

On May 16, 2013, the co-owners broke ground on a major expansion of Tanger
Outlets Cookstown. Cookstown is 30 miles north of the Greater Toronto Area
directly off Highway 400 at Highway 89, the gateway to the highest
concentration of vacation homes in Southern Ontario's cottage country. This
region is a well-traveled vacation area year round where visitors enjoy snow
skiing in the Winter and lakeside activities in the Summer. The project will
expand the 156,000 square foot property, which was acquired in December 2011,
to nearly double its size to approximately 310,000 square feet when complete.
Currently expected to open in the third quarter of 2014, the expansion will
add approximately 35 new brand name and designer outlet stores to the center.

Tanger Outlets National Harbor will be the next Tanger Outlet Center 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 center in time for the 2013 holiday shopping season.
Located within the National Harbor waterfront resort in the Washington D.C.
metropolitan 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.

A small expansion of Tanger Outlets Sevierville in Sevierville, Tennessee is
expected to add approximately 20,000 square feet to the center, increasing
its total gross leasable area to approximately 438,000 square feet. The
expansion is expected to open during the third quarter of this year.

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
Clarksburg, Maryland; as well as planned expansions of existing assets in Park
City, Utah; and in Saint-Sauveur in the Montreal, Quebec market.

 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 $0.78 and $0.81 per share and its FFO available to
common shareholders for 2013 will be between $1.78 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                    $0.78     $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                           $1.78     $1.81

Second Quarter Conference Call

Tanger will host a conference call to discuss its second quarter 2013 results
for analysts, investors and other interested parties on Wednesday, July 31,
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 Second 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 July 31, 2013 at 1:00 p.m. through 11:59 p.m.,
August 7, 2013 by dialing 1-855-859-2056, conference ID # 952249554. An
online archive of the broadcast will also be available through August 7, 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 470
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 June30, 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 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    Six months ended
                                  June 30,              June 30,
                                  2013       2012       2013        2012
REVENUES
Base rentals (a)                  $ 61,046   $ 58,583   $ 120,290   $ 115,802
Percentage rentals                1,855      1,618      3,872       3,362
Expense reimbursements            25,824     25,196     51,130      48,869
Other income                      2,290      1,938      4,412       3,545
 Total revenues                 91,015     87,335     179,704     171,578
EXPENSES
Property operating                28,821     27,977     56,956      54,065
General and administrative        9,914      8,699      19,486      18,719
Acquisition costs (b)             252        —          431         —
Depreciation and amortization     22,172     24,923     44,460      50,438
 Total expenses                 61,159     61,599     121,333     123,222
Operating income                  29,856     25,736     58,371      48,356
Interest expense                  12,583     12,411     25,459      24,745
Income before equity in earnings
(losses) of unconsolidated joint  17,273     13,325     32,912      23,611
ventures
Equity in earnings (losses) of    503        (867)      1,093       (2,319)
unconsolidated joint ventures
Net income                        17,776     12,458     34,005      21,292
Noncontrolling interests in       (859)      (766)      (1,648)     (1,479)
Operating Partnership
Noncontrolling interests in       (29)       25         (30)        32
other consolidated partnerships
Net income attributable to
Tanger Factory Outlet Centers,    16,888     11,717     32,327      19,845
Inc.
Allocation of earnings to         (231)      (209)      (425)       (367)
participating securities
Net income available to common
shareholders of
                                  $ 16,657   $ 11,508   $ 31,902    $ 19,478
Tanger Factory Outlet Centers,
Inc.
Basic earnings per common share:
Net income                        $ 0.18     $ 0.13     $ 0.34      $ 0.21
Diluted earnings per common
share:
Net income                        $ 0.18     $ 0.12     $ 0.34      $ 0.21

     Includes straight-line rent and market rent adjustments of $1,324 and
a. $1,169 for the three months ended and $2,553 and $2,514 for the six
     months ended June30, 2013 and 2012, respectively.
b.  Represents potential acquisition related expenses incurred for the three
     months and six months ended June30, 2013.



TANGER FACTORY OUTLET CENTERS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(Unaudited)
                                                    June 30,      December31,
                                                    2013          2012
ASSETS
 Rental property
  Land                                          $ 148,003     $ 148,002
  Buildings, improvements and fixtures          1,821,404     1,796,042
  Construction in progress                      2,531         3,308
                                                    1,971,938     1,947,352
  Accumulated depreciation                      (618,644)     (582,859)
  Total rental property, net                 1,353,294     1,364,493
 Cash and cash equivalents                        5,450         10,335
 Investments in unconsolidated joint ventures     162,094       126,632
 Deferred lease costs and other intangibles, net  94,192        101,040
 Deferred debt origination costs, net             7,921         9,083
 Prepaids and other assets                        69,205        60,842
  Total assets                            $ 1,692,156   $ 1,672,425
LIABILITIES AND EQUITY
Liabilities
 Debt
  Senior, unsecured notes (net of discount of   $ 548,174     $ 548,033
$1,826 and $1,967, respectively)
  Unsecured term loans (net of discount of $472 259,528       259,453
and $547, respectively)
  Mortgages payable (including premium of       104,237       107,745
$5,816 and $6,362, respectively)
  Unsecured lines of credit                     213,100       178,306
  Total debt                                 1,125,039     1,093,537
 Construction trade payables                      5,595         7,084
 Accounts payable and accrued expenses            34,806        41,149
 Other liabilities                                16,422        16,780
  Total liabilities                       1,181,862     1,158,550
Commitments and contingencies
Equity
 Tanger Factory Outlet Centers, Inc.
  Common shares, $.01 par value, 300,000,000
shares authorized,
  94,425,537 and 94,061,384 shares issued and   944           941
outstanding at June 30,
  2013 and December 31, 2012, respectively
  Paid in capital                            771,265       766,056
  Accumulated distributions in excess of net (294,237)     (285,588)
income
  Accumulated other comprehensive income     1,343         1,200
  Equity attributable to Tanger Factory   479,315       482,609
Outlet Centers, Inc.
Equity attributable to noncontrolling interests
 Noncontrolling interests in Operating            24,100        24,432
Partnership
 Noncontrolling interests in other consolidated   6,879         6,834
partnerships
  Total equity                            510,294       513,875
  Total liabilities and equity         $ 1,692,156   $ 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      Six months ended
                                June 30,                June 30,
                                2013        2012        2013        2012
FUNDS FROM OPERATIONS (a)
 Net income                   $ 17,776    $ 12,458    $ 34,005    $ 21,292
 Adjusted for:
  Depreciation and
amortization uniquely
significant to                 21,867      24,710      43,910      50,011
  real estate -
consolidated
  Depreciation and
amortization uniquely
significant to                 3,431       1,653       6,604       3,468
  real estate -
unconsolidated joint ventures
  Impairment charge -       —           140         —           140
unconsolidated joint venture
  Funds from operations  43,074      38,961      84,519      74,911
(FFO)
 FFO attributable to
noncontrolling interests in
other                           (66)        16          (73)        14

 consolidated partnerships
 Allocation of earnings to    (461)       (391)       (887)       (698)
participating securities
 Funds from operations
available to common          $ 42,547    $ 38,586    $ 83,559    $ 74,227

 shareholders
 Funds from operations
available to common             $ 0.43      $ 0.39      $ 0.85      $ 0.75
 shareholders per share -
diluted
WEIGHTED AVERAGE SHARES
 Basic weighted average       93,331      91,717      93,232      90,694
common shares
 Effect of notional units     784         1,014       777         1,007
 Effect of outstanding
options and restricted common   92          85          99          74

 shares
 Diluted weighted average
common shares (for              94,207      92,816      94,108      91,775
 earnings per share
computations)
 Exchangeable operating       4,748       5,996       4,751       6,927
partnership units (b)
 Diluted weighted average
common shares (for funds
                                98,955      98,812      98,859      98,702
 from operations per share
computations)
OTHER INFORMATION
Gross leasable area open at
end of period -
 Consolidated                 10,785      10,746      10,785      10,746
 Partially owned -            2,126       1,192       2,126       1,192
unconsolidated
Outlet centers in operation at
end of period -
 Consolidated                 36          36          36          36
 Partially owned -            7           3           7           3
unconsolidated
States operated in at end of    24          24          24          24
period (c)
Occupancy at end of period (c)  98.3     %  98.0     %  98.3     %  98.0     %



       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
a.   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.
       The exchangeable operating partnership units (noncontrolling interest
b. 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