Tanger Factory Outlet Centers, Inc.
Supplemental Operating and Financial Data for the
Quarter Ended 06/30/02
Tanger Factory Outlet Centers, Inc.
Supplemental Operating and Financial Data
June 30, 2002
Notice
This Supplemental Operating and Financial Data may contain forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995, which reflect management's current views with respect to future events and
financial performance relating to our re-merchandising strategy, the renewal and
re-tenanting of space, tenant sales and sales trends, interest rates, fund from
operations, the development of new centers, the opening of ongoing expansions,
coverage of the current dividend and the impact of sales of land parcels. 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
local real estate conditions, the availability and cost of capital, our ability
to lease our properties, our 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, 2001.
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.
Tanger Factory Outlet Centers, Inc.
Supplemental Operating and Financial Data
June 30, 2002
2
Table of Contents
Section Page
Quarterly Highlights from Press Release Dated July 30, 2002 4
Portfolio Data
Geographic Diversification 6
Property Summary - Occupancy 7
Major Tenants 8
Lease Expirations 9
Leasing Activity 10
Financial Data
Consolidated Balance Sheets 11
Consolidated Statements of Operations 12
FFO and FAD Analysis 13
Per Weighted Average Gross Leasable Area (GLA) Analysis 14
Debt Outstanding Summary 15
Future Scheduled Principal Payments 16
Investor Information 17
Tanger Factory Outlet Centers, Inc.
Supplemental Operating and Financial Data
June 30, 2002
3
Quarterly Highlights from Press Release dated July 30, 2002
Greensboro, NC, July 30, 2002, Tanger Factory Outlet Centers, Inc. (NYSE:SKT)
today reported funds from operations (FFO) for the second quarter of 2002
increased 9% to $9.4 million, or $.78 per share, compared to $8.6 million, or
$.74 per share, in the same quarter of 2001. For the six months ended June 30,
2002, FFO increased to $1.54 per share, or $18.3 million, compared to $1.44 per
share, or $16.9 million in the same period of 2001. Net income for the second
quarter of 2002 increased 67% to $.20 per share compared to net income of $.12
per share in the same quarter of 2001; while net income for the first six months
of 2002 increased 106% to $.33 per share compared to $.16 per share for the same
period of 2001. All FFO and net income calculations are on a fully diluted basis
and assume full conversion of the minority interest in the operating
partnership.
Reported same-space sales per square foot for the rolling twelve months ended
June 30, 2002 were $297 per square foot. This represents a 6% increase compared
to the same period in 2001. Same-space sales is defined as the weighted average
sales per square foot reported in space open for the full duration of each
comparison period. Our ability to attract high volume tenants to many of our
outlet centers continues to improve the average sales per square foot throughout
our portfolio.
Reported same-store sales for the six months ended June 30, 2002, defined as the
weighted average sales per square foot reported by tenants for stores open since
January 1, 2001, increased by 2%. Reported tenant sales for the first six months
of 2002 for all Tanger Outlet Centers increased 5% to $590 million compared to
$562 million in 2001.
Through June 30, 2002, we renewed approximately 533,000 square feet, or 57%, of
the 935,000 square feet coming up for renewal during the current year at an
average base rental rate 5% higher than the expiring rate. We anticipate that
most of the remaining leases up for renewal will either be renewed with the
existing tenant during 2002 or re-tenanted during the next twelve months. We
also re-tenanted approximately 132,000 square feet of vacant space during the
first six months of 2002 at a 6% increase in the average base rental rate from
that which was charged previously.
During the second quarter of 2002, we completed the sale of our non-core, single
tenant property located in Ft. Lauderdale, FL. The property was sold for $18.2
million, representing a capitalization rate of approximately 8.79% based on an
annual net operating income of $1.6 million. After the deduction of all closing
costs, we recognized a net gain on the sale of the property of approximately
$460,000. We originally purchased the property in November of 1999.
Tanger Factory Outlet Centers, Inc.
Supplemental Operating and Financial Data
June 30, 2002
4
We celebrated a very successful grand opening of our newest outlet center in
Myrtle Beach, South Carolina on July 5, 2002. Preliminary reports from the
stores indicate that sales are exceeding expectations. The first phase,
consisting of approximately 260,000 square feet, is 100% leased and features 60
brand name and designer outlet stores including: Bombay Outlet, Coach
Leatherware, Coldwater Creek, Izod, Kenneth Cole, Liz Claiborne Outlet, Nautica,
Old Navy Outlet, Polo Ralph Lauren Factory Store, Skechers, Tommy Hilfiger and
many more. A 140,000 square foot Phase II addition is planned for summer 2003.
The new Tanger Outlet Center is conveniently located at the intersection of U.S.
Highway 17 and Veterans Highway 22 (Conway by-pass). This property is held in a
joint venture of which we own a 50% interest.
Stanley K. Tanger, Chairman of the Board and Chief Executive Officer, said, "Our
second quarter results came in better than expected, beating consensus estimates
by $.01. We were pleased to see our net operating income for the second quarter
of 2002 improve by approximately two percent over last years comparable number.
In addition, traffic and tenant sales at our centers during the first six months
of 2002 continued to beat last years comparable numbers."
Tanger Factory Outlet Centers, Inc., a fully integrated, self-administered and
self-managed publicly-traded REIT, presently operates 29 centers in 21 states
coast to coast, totaling approximately 5.4 million square feet of gross leasable
area. At June 30, 2002, our operating properties were 96% occupied. We are
filing a Form 8-K with the Securities and Exchange Commission which includes a
supplemental information package for the quarter ended June 30, 2002. For more
information about Tanger Outlet Centers, visit our web site at
www.tangeroutlet.com.
Tanger Factory Outlet Centers, Inc.
Supplemental Operating and Financial Data
June 30, 2002
5
Geographic Diversification
-----------------------------------------------------------------------------------------------------
As of June 30, 2002
-----------------------------------------------------------------------------------------------------
State # of Centers GLA % of GLA
----------------------------- ----------------------- ------------------- ---------------------------
Georgia 4 950,590 18%
New York 1 729,238 13%
Texas 2 618,922 11%
Tennessee 2 448,535 8%
Missouri 1 277,494 5%
Iowa 1 277,230 5%
South Carolina (1) 1 259,929 5%
Pennsylvania 1 255,059 5%
Louisiana 1 245,199 5%
Florida 1 198,789 4%
North Carolina 2 187,702 3%
Arizona 1 184,768 3%
Indiana 1 141,051 3%
Minnesota 1 134,480 3%
Michigan 1 112,420 2%
California 1 105,950 2%
Maine 2 84,397 2%
Alabama 1 80,730 1%
New Hampshire 2 61,745 1%
West Virginia 1 49,252 1%
Massachusetts 1 23,417 --%
----------------------------- ----------------------- ------------------- ---------------------------
Total 29 5,426,897 100%
----------------------------- ----------------------- ------------------- ---------------------------
(1) Includes one center totaling 259,929 sq. ft. of which Tanger owns a 50%
interest through a joint venture arrangement.
Tanger Factory Outlet Centers, Inc.
Supplemental Operating and Financial Data
June 30, 2002
6
Property Summary - Occupancy
----------------------------- ------------ --------------- -------------- -------------- --------------- --------------
Total GLA % Occupied % Occupied % Occupied % Occupied % Occupied
06/30/02 06/30/02 03/31/02 12/31/01 09/30/01 06/30/01
Location
----------------------------- ------------ --------------- -------------- -------------- --------------- --------------
Barstow, CA 105,950 57% 59% 76% 76% 76%
Blowing Rock, NC 105,448 100% 100% 100% 100% 100%
Boaz, AL 80,730 93% 93% 93% 93% 93%
Bourne, MA 23,417 100% 100% 100% 100% 100%
Branson, MO 277,494 98% 94% 100% 99% 98%
Casa Grande, AZ 184,768 89% 89% 94% 84% 84%
Commerce I, GA 185,750 90% 84% 79% 81% 88%
Commerce II, GA 342,556 97% 95% 99% 97% 94%
Dalton, GA 173,430 96% 90% 94% 95% 93%
Ft Lauderdale, FL n/a n/a 100% 100% 100% 100%
Gonzales, LA 245,199 96% 97% 97% 99% 97%
Kittery I, ME 59,694 100% 100% 100% 100% 100%
Kittery II, ME 24,703 94% 94% 100% 100% 100%
Lancaster, PA 255,059 96% 94% 100% 100% 97%
Locust Grove, GA 248,854 98% 100% 98% 97% 94%
Martinsburg, WV 49,252 57% 73% 93% 100% 86%
Myrtle Beach, SC (1) 259,929 100% n/a n/a n/a n/a
Nags Head, NC 82,254 100% 100% 100% 100% 100%
North Branch, MN 134,480 100% 100% 100% 99% 90%
Clover, NH 11,000 100% 100% 100% 100% 100%
LL Bean, NH 50,745 100% 100% 100% 100% 100%
Pigeon Forge, TN 94,558 100% 100% 96% 94% 96%
Riverhead, NY 729,238 99% 98% 100% 96% 94%
San Marcos, TX 441,432 98% 98% 98% 97% 98%
Sanibel, FL 198,789 93% 96% 97% 94% 91%
Sevierville, TN 353,977 100% 100% 100% 100% 100%
Seymour, IN 141,051 76% 73% 76% 74% 71%
Terrell, TX 177,490 95% 96% 94% 92% 85%
West Branch, MI 112,420 98% 100% 95% 95% 100%
Williamsburg, IA 277,230 98% 97% 96% 97% 97%
----------------------------- ------------ --------------- -------------- -------------- --------------- --------------
Total 5,426,897 96% 95% 96% 95% 94%
----------------------------- ------------ --------------- -------------- -------------- --------------- --------------
[GRAPH APPEARS HERE WITH THE FOLLOWING PLOT POINTS]
'06/02 '03/02 '12/01 '09/01 '06/01 '03/01 '12/00 '09/00 '06/00
96% 95% 96% 95% 94% 95% 96% 95% 95%
Portfolio Weighted Average Occupancy at the End of Each Period
(1) Includes one center totaling 259,929 sq. ft. of which Tanger owns a 50%
interest through a joint venture arrangement. Major Tenants
Tanger Factory Outlet Centers, Inc.
Supplemental Operating and Financial Data
June 30, 2002
7
----------------------------------------------------------------------------------------
Ten Largest Tenants As of June 30, 2002
----------------------------------------------------------------------------------------
# of % of
Tenant Stores GLA Total GLA
------------------------------------------- ----------- -------------- -----------------
The Gap, Inc. 34 345,622 6.7%
Liz Claiborne 38 298,852 5.8%
Phillips-Van Heusen 66 295,872 5.7%
Reebok International 24 168,361 3.3%
Dress Barn, Inc. 18 123,828 2.4%
Sara Lee Corporation 30 113,039 2.2%
Mikasa 13 104,004 2.0%
Brown Group Retail 20 97,420 1.9%
Polo Ralph Lauren 14 93,251 1.8%
VF Factory Outlet 3 78,697 1.5%
------------------------------------------- ----------- -------------- -----------------
Total of All Listed Above 260 1,718,946 33.3%
------------------------------------------- ----------- -------------- -----------------
Tanger Factory Outlet Centers, Inc.
Supplemental Operating and Financial Data
June 30, 2002
8
Lease Expirations as of June 30, 2002
Percentage of Total Gross Leasable Area
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012+
8.00% 17.00% 20.00% 15.00% 14.00% 13.00% 4.00% 2.00% 1.00% 2.00% 4.00%
Percentage of Total Annualized Base Rent
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012+
5.00% 16.00% 20.00% 17.00% 16.00% 14.00% 4.00% 2.00% 1.00% 1.00% 4.00%
Tanger Factory Outlet Centers, Inc.
Supplemental Operating and Financial Data
June 30, 2002
9
Leasing Activity
---------------------------------------------------- ------------- -------------- ------------- ------------ ------------
Year to
03/31/02 06/30/02 09/30/02 12/31/02 Date
---------------------------------------------------- ------------- -------------- ------------- ------------ ------------
Re-tenanted Space:
Number of leases 24 10 34
Gross leasable area 93,943 37,653 131,596
New base rent per square foot $13.93 $18.20 $15.15
Prior base rent per square foot $12.75 $18.34 $14.35
Percent increase in rent per square foot 9.2% (0.8%) 5.6%
----------------------------------------------------
Renewed Space:
----------------------------------------------------
Number of leases 115 33 148
Gross leasable area 403,956 129,040 532,996
New base rent per square foot $16.24 $18.22 $16.72
Prior base rent per square foot $15.49 $17.44 $15.96
Percent increase in rent per square foot 4.8% 4.5% 4.8%
----------------------------------------------------
Total Re-tenanted and Renewed Space:
----------------------------------------------------
Number of leases 139 43 182
Gross leasable area 497,899 166,693 664,592
New base rent per square foot $15.81 $18.22 $16.41
Prior base rent per square foot $14.97 $17.64 $15.64
Percent increase in rent per square foot 5.6% 3.3% 4.9%
Tanger Factory Outlet Centers, Inc.
Supplemental Operating and Financial Data
June 30, 2002
10
Consolidated Balance Sheets (dollars in thousands)
---------------------------------------------------- ------------- ------------ ------------- ------------ ------------
06/30/02 03/31/02 12/31/01 09/30/01 06/30/01
---------------------------------------------------- ------------- ------------ ------------- ------------ ------------
Assets
Rental Property
Land $50,176 $60,196 $60,158 $59,858 $59,858
Buildings 535,438 541,010 539,108 538,342 533,823
---------------------------------------------------- ------------- ------------ ------------- ------------ ------------
Total rental property 585,614 601,206 599,266 598,200 593,681
Accumulated depreciation (161,612) (155,614) (148,950) (142,182) (135,472)
---------------------------------------------------- ------------- ------------ ------------- ------------ ------------
Total rental property - net 424,002 445,592 450,316 456,018 458,209
Cash 204 210 515 198 216
Deferred charges - net 10,465 11,084 11,413 11,666 12,130
Other assets 30,783 12,183 14,028 16,406 14,422
---------------------------------------------------- ------------- ------------ ------------- ------------ ------------
Total assets $465,454 $469,069 $476,272 $484,288 $484,977
---------------------------------------------------- ------------- ------------ ------------- ------------ ------------
Liabilities & Shareholders' Equity
Liabilities
Debt
Senior, unsecured notes $155,609 $155,609 $160,509 $175,000 $175,000
Mortgages payable 175,603 176,176 176,736 177,285 177,823
Lines of credit 26,625 27,786 20,950 10,628 7,413
---------------------------------------------------- ------------- ------------ ------------- ------------ ------------
Total debt 357,837 359,571 358,195 362,913 360,236
Construction trade payables 4,141 3,934 3,722 6,431 6,251
Accounts payable & accruals 12,943 11,278 16,478 14,191 12,452
---------------------------------------------------- ------------- ------------ ------------- ------------ ------------
Total liabilities 374,921 374,783 378,395 383,535 378,939
---------------------------------------------------- ------------- ------------ ------------- ------------ ------------
Minority interest 19,326 20,386 21,506 22,302 23,765
---------------------------------------------------- ------------- ------------ ------------- ------------ ------------
Shareholders' equity
Preferred shares 1 1 1 1 1
Common shares 80 80 79 79 79
Paid in capital 138,177 137,684 136,529 136,529 136,522
Distributions in excess of net income (66,619) (63,370) (59,534) (57,403) (53,894)
Accum. other comprehensive income (432) (495) (704) (755) (435)
---------------------------------------------------- ------------- ------------ ------------- ------------ ------------
Total shareholders' equity 71,207 73,900 76,371 78,451 82,273
---------------------------------------------------- ------------- ------------ ------------- ------------ ------------
Total liabilities & shareholders' equity $465,454 $469,069 $476,272 $484,288 $484,977
---------------------------------------------------- ------------- ------------ ------------- ------------ ------------
Tanger Factory Outlet Centers, Inc.
Supplemental Operating and Financial Data
June 30, 2002
11
Consolidated Statements of Operations (dollars and shares in thousands)
-------------------------------------- ----------------------------------------------------------------- ------------------------
Three Months Ended YTD
-------------------------------------- ----------------------------------------------------------------- ------------------------
06/02 03/02 12/01 09/01 06/01 06/02 06/01
-------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Revenues
Base rentals $18,540 $18,189 $19,311 $18,401 $18,164 $36,729 $36,042
Percentage rentals 581 597 1,287 598 499 1,178 850
Expense reimbursements 7,333 7,301 7,548 7,126 7,587 14,635 15,045
Other income 508 573 849 846 557 1,081 1,077
-------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Total revenues 26,962 26,660 28,995 26,971 26,807 53,623 53,014
-------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Expenses
Property operating 8,677 8,656 8,390 8,334 8,844 17,334 17,427
General & administrative 2,092 2,275 2,134 2,012 2,016 4,367 4,085
Interest 7,118 7,129 7,297 7,546 7,658 14,247 15,291
Depreciation & amortization 7,116 7,083 7,143 7,112 6,836 14,199 13,958
-------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Total expenses 25,003 25,143 24,964 25,004 25,354 50,147 50,761
-------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Income before minority interest,
discontinued operations
and extraordinary item 1,959 1,517 4,031 1,967 1,453 3,476 2,253
Minority interest (416) (296) (993) (421) (280) (712) (379)
-------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Income from continuing operations 1,543 1,221 3,038 1,546 1,173 2,764 1,874
Discontinued operations (1) 551 224 225 224 225 775 449
-------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Income before extraordinary item 2,094 1,445 3,263 1,770 1,398 3,539 2,323
Extraordinary item - loss on early
extinguishments of debt -- -- (114) -- -- -- (130)
-------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Net Income 2,094 1,445 3,149 1,770 1,398 3,539 2,193
Less applicable preferred share
dividends (442) (444) (443) (443) (443) (886) (885)
-------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Net income available to common
shareholders $1,652 $1,001 $2,706 $1,327 $955 $2,653 $1,308
-------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Basic earnings per common share:
-------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Income from continuing operations $.14 $.10 $.33 $.14 $.09 $.23 $.12
-------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Net income $.21 $.13 $.34 $.17 $.12 $.33 $.16
-------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Diluted earnings per common share:
-------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Income from continuing operations $.13 $.10 $.33 $.14 $.09 $.23 $.12
-------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Net income $.20 $.12 $.34 $.17 $.12 $.33 $.16
-------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
Weighted average common shares:
Basic 8,015 7,948 7,930 7,930 7,923 7,982 7,921
Diluted 8,229 8,028 7,946 7,954 7,948 8,135 7,946
-------------------------------------- ------------- ------------ ------------ ------------ ------------ ------------ -----------
(1) In accordance with SFAS 144 No. "Accounting for the Impairment or Disposal
of Long Lived Assets", the results of operations for property disposed of during
the year have been reported above as Discontinued operations for both the
current year and prior periods presented.
Tanger Factory Outlet Centers, Inc.
Supplemental Operating and Financial Data
June 30, 2002
12
FFO and FAD Analysis (dollars and shares in thousands)
-------------------------------------------- ------------------------------------------------------- --------------------
Three Months Ended YTD
-------------------------------------------- ------------------------------------------------------- --------------------
06/02 03/02 12/01 09/01 06/01 06/02 06/01
-------------------------------------------- ----------- ---------- ---------- ---------- ---------- ---------- ---------
Funds from operations:
Net income $2,094 $1,445 $3,149 $1,770 $1,398 $3,539 $2,193
Adjusted for -
Extraordinary item -- 114 -- -- -- 130
Minority interest 416 296 993 421 280 712 379
Minority interest, depreciation
and amortization in
discontinued operations 291 176 176 176 175 467 351
Depreciation and amortization
uniquely significant to real estate 7,042 7,010 7,071 7,043 6,770 14,052 13,802
Gain on sale of real estate (460) -- -- -- -- (460) --
-------------------------------------------- ----------- ---------- ---------- ---------- ---------- ---------- ---------
Funds from operation $9,383 $8,927 $11,503 $9,410 $8,623 $18,310 $16,855
-------------------------------------------- ----------- ---------- ---------- ---------- ---------- ---------- ---------
-------------------------------------------- ----------- ---------- ---------- ---------- ---------- ---------- ---------
Funds from operations per share $.78 $.76 $.98 $.80 $.74 $1.54 $1.44
-------------------------------------------- ----------- ---------- ---------- ---------- ---------- ---------- ---------
Funds available for distribution:
Funds from operations $9,383 $8,927 $11,503 $9,410 $8,623 $18,310 $16,855
Plus -
Corporate depreciation
excluded above 75 73 72 69 66 148 155
Amortization of finance costs 289 303 330 326 336 592 1,003
Straight line rent adjustment 60 41 73 96 68 101 172
Less -
2nd generation tenant allowances (429) (1,206) (1,337) (1,567) (1,086) (1,635) (3,101)
Capital improvements (578) (370) (803) (1,708) (630) (948) (890)
-------------------------------------------- ----------- ---------- ---------- ---------- ---------- ---------- ---------
Funds available for distribution $8,800 $7,768 $9,838 $6,626 $7,377 $16,568 $14,194
-------------------------------------------- ----------- ---------- ---------- ---------- ---------- ---------- ---------
-------------------------------------------- ----------- ---------- ---------- ---------- ---------- ---------- ---------
Funds available for distribution
per share $.73 $.66 $.84 $.57 $.63 $1.39 $1.21
-------------------------------------------- ----------- ---------- ---------- ---------- ---------- ---------- ---------
-------------------------------------------- ----------- ---------- ---------- ---------- ---------- ---------- ---------
Dividends paid per share $.6125 $.61 $.61 $.61 $.61 $1.2225 $1.2175
-------------------------------------------- ----------- ---------- ---------- ---------- ---------- ---------- ---------
-------------------------------------------- ----------- ---------- ---------- ---------- ---------- ---------- ---------
FFO payout ratio 79% 80% 62% 76% 82% 79% 85%
-------------------------------------------- ----------- ---------- ---------- ---------- ---------- ---------- ---------
-------------------------------------------- ----------- ---------- ---------- ---------- ---------- ---------- ---------
FAD payout ratio 84% 92% 73% 107% 97% 88% 101%
-------------------------------------------- ----------- ---------- ---------- ---------- ---------- ---------- ---------
Diluted weighted average common
Shares 11,985 11,787 11,705 11,713 11,707 11,892 11,705
-------------------------------------------- ----------- ---------- ---------- ---------- ---------- ---------- ---------
Tanger Factory Outlet Centers, Inc.
Supplemental Operating and Financial Data
June 30, 2002
13
Per Weighted Average Gross Leasable Area (GLA) Analysis
------------------------------------ ----------------------------------------------------------------- ------------------------
Three Months Ended YTD
------------------------------------ ----------------------------------------------------------------- ------------------------
06/02 03/02 12/01 09/01 06/01 06/02 06/01
------------------------------------ ------------- ------------ ------------ ------------ ------------ ------------ -----------
GLA open at end of period (000's) 5,427 5,167 5,167 5,161 5,141 5,427 5,141
Weighted average GLA (000's) (1) 5,167 5,167 5,165 5,152 5,129 5,167 5,109
End of period occupancy 96% 95% 96% 95% 94% 96% 94%
PER SQUARE FOOT
Revenues
Base rentals $3.59 $3.52 $3.74 $3.57 $3.54 $7.11 $7.05
Percentage rentals .11 .12 .25 .12 .10 .23 .17
Expense reimbursements 1.42 1.41 1.46 1.38 1.48 2.83 2.94
Other income .10 .11 .16 .16 .11 .21 .21
------------------------------------ ------------- ------------ ------------ ------------ ------------ ------------ -----------
Total revenues 5.22 5.16 5.61 5.23 5.23 10.38 10.37
------------------------------------ ------------- ------------ ------------ ------------ ------------ ------------ -----------
Expenses
Property operating 1.68 1.68 1.62 1.62 1.72 3.35 3.41
General & administrative .40 .44 .41 .39 .40 .85 .80
Interest 1.38 1.38 1.41 1.46 1.49 2.76 2.99
Depreciation & amortization 1.38 1.37 1.38 1.38 1.33 2.75 2.73
------------------------------------ ------------- ------------ ------------ ------------ ------------ ------------ -----------
Total expenses 4.84 4.87 4.82 4.85 4.94 9.71 9.93
------------------------------------ ------------- ------------ ------------ ------------ ------------ ------------ -----------
Income before minority interest,
discontinued operations and
extraordinary item $.38 $.29 $.79 $.38 $.29 $.67 $.44
------------------------------------ ------------- ------------ ------------ ------------ ------------ ------------ -----------
Net operating income $3.14 $3.04 $3.58 $3.22 $3.11 $6.18 $6.16
------------------------------------ ------------- ------------ ------------ ------------ ------------ ------------ -----------
Funds from operations $1.82 $1.73 $2.23 $1.83 $1.68 $3.54 $3.30
------------------------------------ ------------- ------------ ------------ ------------ ------------ ------------ -----------
(1) Represents GLA weighted by months open. GLA is not adjusted for fluctuations in occupancy that may occur
subsequent to the original opening date.
Tanger Factory Outlet Centers, Inc.
Supplemental Operating and Financial Data
June 30, 2002
14
Debt Outstanding Summary (dollars in thousands)
--------------------------------------------------------------------------------------------------------
As of June 30, 2002
--------------------------------------------------------------------------------------------------------
Principal Interest Maturity
Balance Rate Date
----------------------------------------- -------------- ------------------------------ ----------------
Mortgage debt
Lancaster, PA $14,672 9.770% 04/10/05
Commerce I, GA 8,511 9.125% 09/10/05
Branson, MO 24,000 Libor + 1.75% 03/26/06
Commerce II, GA (1) 29,500 Libor + 1.75% 03/26/06
Dalton, GA 11,232 7.875% 04/01/09
Kittery I, ME 6,391 7.875% 04/01/09
San Marcos I, TX 19,077 7.875% 04/01/09
San Marcos II, TX 19,172 7.980% 04/01/09
West Branch, MI 7,130 7.875% 04/01/09
Williamsburg, IA 19,602 7.875% 04/01/09
Blowing Rock, NC 9,719 8.860% 09/01/10
Nags Head, NC 6,597 8.860% 09/01/10
----------------------------------------- -------------- ------------------------------ ----------------
Total mortgage debt 175,603
----------------------------------------- -------------- ------------------------------ ----------------
Corporate debt
Unsecured credit facilities 21,000 Libor + (1.60% to 1.75%) 06/30/03
Unsecured credit facilities 5,625 Libor + (1.60% to 1.75%) 06/30/04
1997 Senior unsecured notes 55,609 7.875% 10/24/04
2001 Senior unsecured notes 100,000 9.125% 02/15/08
----------------------------------------- -------------- ------------------------------ ----------------
Total corporate debt 182,234
----------------------------------------- -------------- ------------------------------ ----------------
Total debt $357,837
----------------------------------------- -------------- ------------------------------ ----------------
(1) $25 million of this loan has been fixed until 01/27/03 at 7.72% through the use of an interest rate swap
agreement.
Tanger Factory Outlet Centers, Inc.
Supplemental Operating and Financial Data
June 30, 2002
15
Future Scheduled Principal Payments (dollars in thousands)
-------------------------------------------------------------------------------------------
As of June 30, 2002
-------------------------------------------------------------------------------------------
Scheduled Total
Amortization Balloon Scheduled
Year Payments Payments Payments
------------------------- -------------------- --------------------- ----------------------
2002 $1,155 $ ------ $1,155
2003 (1) 2,835 21,000 23,835
2004 (1) 3,432 61,233 64,665
2005 3,311 20,577 23,888
2006 2,517 51,383 53,900
2007 2,349 -- 2,349
2008 2,545 100,000 102,545
2009 967 70,474 71,441
2010 181 13,878 14,059
2011 -- -- --
2012 & thereafter -- -- --
------------------------- -------------------- --------------------- ----------------------
$19,292 $338,545 $357,837
------------------------- -------------------- --------------------- ----------------------
(1) Balloon payments in 2003 and 2004 include $21,000 and $5,625, respectively
relating to amounts outstanding under the unsecured credit facilities.
Tanger Factory Outlet Centers, Inc.
Supplemental Operating and Financial Data
June 30, 2002
16
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) 292-3010 ext 165
Fax: (336) 297-0931
e-mail: tangermail@tangeroutlet.com
Mail: Tanger Factory Outlet Centers, Inc.
3200 Northline Avenue
Suite 360
Greensboro, NC 27408
Tanger Factory Outlet Centers, Inc.
Supplemental Operating and Financial Data
June 30, 2002
17