5/30/12

Tanger Reports First Quarter 2012 Results

TangerReportsFirstQuarter2012Results
CompanyRelease04/24/201216:16 SameCenterNOIIncreases6.2% FundsFromOperationsIncrease20.3% GREENSBORO,N.C.,April24,2012(GLOBENEWSWIRE)TangerFactoryOutletCenters,Inc. (NYSE:SKT)todayreportedfundsfromoperations("FFO"),awidelyacceptedsupplementalmeasureof REITperformance,availabletocommonshareholdersincreased20.3%forthethreemonthsendedMarch 31,2012to$35.6million,or$0.36pershare,ascomparedtoFFOof$29.6million,or$0.32pershare,for thethreemonthsendedMarch31,2011. StevenB.Tanger,PresidentandChiefExecutiveOfficer,commented,"Thefirstquarterwasquiterobust, asourindustrycontinuestogrow.Thisyearisofftoastrongstartwithhealthyrenewalsandretenantingof space,asevidencedbythestrongpercentagegainspostedinthisquarter.Ourexpansionintothe Canadianmarketplace,withourjointventurepartnerRioCan,continueswiththeannouncementofa strategicalliancewiththeOrlandoCorporationtodevelopmentanoutletcenteronlandwithinthe HeartlandTownCentre,locatedinthewesternGreaterTorontoArea." FFOforallperiodsshownwasimpactedbyanumberofchargesasdescribedinthesummarybelow (dollarsandnumberofsharesinthousands,exceptpershareamounts): FFOasreported Asadjustedfor: Acquisitioncosts Abandoneddevelopmentcosts AFFOadjustmentsfromunconsolidated jointventures(1) Impactofaboveadjustmentstotheallocation ofFFOtoparticipatingsecurities AdjustedFFO("AFFO") Dilutedweightedaveragecommonshares AFFOpershare (6) $36,320 98,690 $.37 686 (7) $30,338 92,685 $.33 ThreeMonthsEnded March31, 2012 $35,640 567 158 2011 $29,620

(1)Includesourshareofacquisitioncosts,abandoneddevelopmentcostsandgainonearly extinguishmentofdebtfromunconsolidatedjointventures. NetincomeavailabletocommonshareholdersforthethreemonthsendedMarch31,2012was$8.0 millionor$0.09pershare,ascomparedtonetincomeof$9.2million,or$0.11pershareforthefirst quarterof2011.Netincomeavailabletocommonshareholdersforthe2012and2011periodswasalso impactedbythechargesdescribedabove. NetincomeandFFOpershareamountsaboveareonadilutedbasis.FFOandAFFOaresupplemental nonGAAPfinancialmeasuresusedasastandardintherealestateindustrytomeasureandcomparethe operatingperformanceofrealestatecompanies.Acompletereconciliationcontainingadjustmentsfrom GAAPnetincometoFFOisincludedinthisrelease. FirstQuarterHighlights 6.2%increaseinsamecenternetoperatingincome,comparedto6.0%increaselastyear
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Tanger Reports First Quarter 2012 Results

23.4%blendedincreaseinaveragebaserentalratesonrenewedandreleasedspace 97.3%periodendconsolidatedportfoliooccupancyrate,comparedto96.7%lastyear 3.4%increaseinreportedtenantcomparablesalesfortherollingtwelvemonthsendedMarch31, 2012to$371persquarefoot 5.1%increaseinreportedtenantcomparablesalesforthethreemonthsendedMarch31,2012 BeganconstructiononTangerOutletsWestgate,anew330,000squarefootoutletcenterin Glendale,Arizona,withanexpectedopeningintimeforthe2012holidayshoppingseason Closedona$250millionsevenyearunsecuredbanktermloanwhich,basedonTanger'scurrent creditratings,bearsinterestatLIBORplus180basispoints Raisedthequarterlycommonsharecashdividend5.0%from$0.20to$0.21pershare,$0.84per shareannualized,representingthe19thconsecutiveyearofincreasedcashdividends AnnouncedanadditionaldevelopmentsiteonlandwithintheHeartlandTownCentre,locatedin thewesternGreaterTorontoArea 26.1%debttototalmarketcapitalratioasofMarch31,2012 3.90timesinterestcoverageforthequarterendedMarch31,2012 NationalPortfolioDrivesOperatingResults Duringthefirstquarterof2012,Tangerexecuted248leases,totaling1,141,000squarefeetthroughoutits consolidatedportfolio.Leaserenewalsduringthefirstquarterof2012accountedfor921,000squarefeet andgenerateda14.5%increaseinaveragebaserentalrates.Baserentalincreasesonretenanted spaceduringthefirstquarteraveraged57.9%andaccountedfortheremaining220,000squarefeet, resultinginablendedaverageincreaseinbaserentalratesonleaserenewalsandretenantedspaceof 23.4%. SamecenternetoperatingincomeforTanger'sconsolidatedpropertiesincreased6.2%forthefirstquarter of2012,comparedtoa6.0%increaselastyear.Reportedtenantcomparablesalesforourconsolidated propertiesfortherollingtwelvemonthsendedMarch31,2012increased3.4%to$371persquarefoot whiletenantcomparablesalesforthethreemonthsendedMarch31,2012increased5.1%. CashDividendIncreased OnApril5,2012,TangerannouncedthatitsBoardofDirectorsapproveda5.0%increaseintheannual cashdividendonitscommonsharesfrom$0.80pershareto$0.84pershare.Simultaneously,theBoard ofDirectorsdeclaredaquarterlydividendof$0.21pershareforthefirstquarterendedMarch31,2012, whichwillbepayableonMay15,2012toholdersofrecordonApril30,2012.Thecompanyhaspaidcash dividendseachquarterandhasraiseditsdividendeachyearsincebecomingapubliccompanyinMay 1993. BalanceSheetSummary OnFebruary24,2012,Tangerannouncedtheclosingofasevenyear$250.0millionunsecuredterm loan.ThetermloanisinterestonlyandmaturesinFebruary2019.Itisprepayablewithoutpenalty beginningFebruary2015.BasedonTanger'scurrentcreditratings,theloanhasaninitialinterestrateof LIBORplus180basispoints.Tangerusedthenetproceedsofthetermloantoreducetheoutstanding balancesonitsunsecuredrevolvingcreditfacilitiesandforgeneralcorporatepurposes. AsofMarch31,2012,Tangerhadatotalmarketcapitalizationofapproximately$3.98billionincluding $1.04billionofdebtoutstanding,equatingtoa26.1%debttototalmarketcapitalizationratio.AsofMarch 31,2012,63.4%ofTanger'sdebtwasatfixedinterestratesandthecompanyhad$121.1million outstandingonits$520.0millioninavailableunsecuredlinesofcredit.Duringthefirstquarterof2012, Tangercontinuedtomaintainastronginterestcoverageratioof3.90times. InvestmentActivitiesProvidePotentialFutureGrowth InAugust2011,thecompanybeganconstructiononanewTangerOutletCenterlocatedinTexasCity (Houston),Texas.Thecenterwillbelocatedapproximately30milessouthofHoustonand20milesnorth ofGalvestononthehighlytraveledInterstate45,offExit17onHollandRoad.Houstonisthefourthlargest U.S.city,andGalvestonisapopularGulfCoastgetawaydestinationthatattractsover5millionvisitorsa year.TangercurrentlyexpectsthecentertobecompletedintimeforandOctober2012grand openingandtofeatureover90brandnameanddesigneroutletstoresinthefirstphaseofapproximately 350,000squarefeet,withampleroomforexpansionforatotalbuildoutofapproximately470,000square feet. OnFebruary20,2012,thecompanyannouncedthatconstructionhadbegunonTangerOutletsWestgate inGlendale,Arizona.Situatedon38acres,theoutletcenterwillbelocatedonLoop101andGlendale AvenueinWesternPhoenix.ThissiteisadjacenttoWestgateCityCenter,Jobing.comArena,Universityof
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Tanger Reports First Quarter 2012 Results

PhoenixStadium,Cabela'sandTheRenaissanceGlendaleHotelandSpa.Tangercurrentlyexpectsthis centertobecompletedintimeforaNovember2012grandopeningandtooffersome85brandname outletstoresinthefirstphasewhichwillcontainapproximately330,000squarefeet. OnApril11,2012,TangerandRioCanRealEstateInvestmentTrustannouncedtheyhaveenteredintoan agreementwiththeOrlandoCorporationtocreateastrategicalliancetodevelopadesigneroutletcenter onlandwithintheHeartlandTownCentre.LocatedinthewesternGreaterTorontoArea,HeartlandTown CentreisCanada'slargestpowercenterwithaccesstoHighway401.Thepartiesintendtoaddanewly designedgroundupoutletcenterofapproximately312,000squarefeettothehighlyproductive2million squarefeetofretailspacecurrentlyatHeartlandTownCentre. TangerhasannouncedtwoadditionaldomesticsiteslocatedinScottsdale,ArizonaandinNational Harbor,awaterfrontresortintheWashington,DCmetroarea.Additionally,TangerandRioCanhave announcedaCanadiansiteinKanata,OntariointheOttawamarketaswellasplanstoexpandTanger OutletsCookstownfrom157,000squarefeettoapproximately320,000squarefeet.Alloftheseprojects arecurrentlyinthepredevelopmentphase. 2012FFOPerShareGuidance BasedonTanger'sinternalbudgetingprocess,thecompany'sviewoncurrentmarketconditions,andthe strengthandstabilityofitscoreportfolio,managementcurrentlybelievesitsnetincomeavailableto commonshareholdersfor2012willbebetween$0.60and$0.66pershareanditsFFOavailableto commonshareholdersfor2012willbebetween$1.57and$1.63pershare. Thecompany'searningsestimatesreflectaprojectedincreaseinsamecenternetoperatingincomeof between4%and5%.Thecompany'sestimatesdonotincludetheimpactofanyrentterminationfees,any additionalpotentialrefinancingtransactions,thesaleofanyoutparcelsofland,orthesaleoracquisition ofanyproperties.Thefollowingtableprovidesthereconciliationofestimateddilutednetincomepershare toestimateddilutedFFOpershare: ForthetwelvemonthsendedDecember31,2012: Estimateddilutednetincomepershare Noncontrollinginterest,gain/lossonacquisitionofreal estate,depreciationandamortizationuniquely significanttorealestateincludingnoncontrolling interestshareandourshareofjointventures EstimateddilutedFFOpershare 0.97 $1.57 FirstQuarterConferenceCall Tangerwillhostaconferencecalltodiscussitsfirstquarterresultsforanalysts,investorsandother interestedpartiesonWednesday,April25,2012,at10:00a.m.easterntime.Toaccesstheconference call,listenersshoulddial18772775113andrequesttobeconnectedtotheTangerFactoryOutlet CentersFirstQuarter2012FinancialResultscall.Alternatively,thecallwillbewebcastbySNLIR SolutionsandcanbeaccessedatTangerFactoryOutletCenters,Inc.'swebsitebyclickingtheInvestor Relationslinkonwww.tangeroutlet.com.AtelephonereplayofthecallwillbeavailablefromApril25, 2012at1:00p.m.easterntimethrough11:59p.m.,May2,2012bydialing18558592056,conferenceID #66789344.AnonlinearchiveofthebroadcastwillalsobeavailablethroughMay2,2012. AboutTangerFactoryOutletCenters TangerFactoryOutletCenters,Inc.(NYSE:SKT),isapubliclytradedREITheadquarteredinGreensboro, NorthCarolinathatpresentlyoperatesandowns,orhasanownershipinterestin,aportfolioof39upscale outletshoppingcentersin25statescoasttocoastandinCanada,totalingapproximately11.9million squarefeetleasedtocloseto2,500storesoperatedbymorethan435differentbrandname companies.Morethan175millionshoppersvisitTangerFactoryOutletCenters,Inc.annually.Tangeris filingaForm8KwiththeSecuritiesandExchangeCommissionthatincludesasupplementalinformation packageforthequarterendedMarch31,2012.FormoreinformationonTangerOutletCenters,call1 8004TANGERorvisitthecompany'swebsiteatwww.tangeroutlet.com. Thisnewsreleasecontainsforwardlookingstatementswithinthemeaningoffederalsecurities laws.Thesestatementsinclude,butarenotlimitedto,estimatesoffuturenetincomepershare,FFOper
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$0.60

$0.66 0.97 $1.63

LowRange HighRange

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Tanger Reports First Quarter 2012 Results

share,samecenternetoperatingincomeaswellasotherstatementsregardingtheexpectedtimingofthe grandopeningsofthecurrentdevelopments,thecompany'simplementationandprogressofitsoutlet strategyinCanadathroughajointventurewithRioCanRealEstateInvestmentTrust,therenewalandre tenantingofspace,tenantsalesandsalestrends,interestrates,coverageofthecurrentdividendand management'sbeliefs,plans,estimates,intentions,andsimilarstatementsconcerninganticipatedfuture events,results,circumstances,performanceorexpectationsthatarenothistoricalfacts.Theseforward lookingstatementsaresubjecttorisksanduncertainties.Actualresultscoulddiffermateriallyfromthose projectedduetovariousfactorsincluding,butnotlimitedto,therisksassociatedwithgeneraleconomic andrealestateconditionsintheUnitedStatesandCanada,thecompany'sabilitytomeetitsobligations onexistingindebtednessorrefinanceexistingindebtednessonfavorableterms,theavailabilityandcost ofcapital,thecompany'sabilitytoleaseitsproperties,thecompany'sabilitytoimplementitsplansand strategiesforjointventurepropertiesthatitdoesnotfullycontrol,thecompany'sinabilitytocollectrentdue tothebankruptcyorinsolvencyoftenantsorotherwise,andcompetition.Foramoredetaileddiscussionof thefactorsthataffectouroperatingresults,interestedpartiesshouldreviewtheTangerFactoryOutlet Centers,Inc.AnnualReportonForm10KforthefiscalyearendedDecember31,2011. TANGERFACTORYOUTLETCENTERS,INC.ANDSUBSIDIARIES CONSOLIDATEDSTATEMENTSOFOPERATIONS (Inthousands,exceptpersharedata) (Unaudited) Revenues Baserentals(a) Percentagerentals Expensereimbursements Otherincome Totalrevenues Expenses Propertyoperating Generalandadministrative Acquisitioncosts(b) Abandoneddevelopmentcosts(c) Depreciationandamortization Totalexpenses Operatingincome Interestexpense Incomebeforeequityinlossesofunconsolidatedjointventures Equityinlossesofunconsolidatedjointventures Netincome NoncontrollinginterestinOperatingPartnership Noncontrollinginterestinotherconsolidatedpartnerships NetincomeattributabletoTangerFactoryOutletCenters,Inc. Allocationofearningstoparticipatingsecurities NetincomeavailabletocommonshareholdersofTangerFactory OutletCenters,Inc.
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March31, 2012 $57,219 1,744 23,476 1,804 84,243 26,088 10,020 25,515 61,623 22,620 12,334 10,286 (1,452) 8,834 (713) 7 8,128 (158) $7,970

ThreeMonthsEnded 2011 $46,219 1,391 21,205 1,924 70,739 24,108 6,767 567 158 17,965 49,565 21,174 10,325 10,849 (32) 10,817 (1,419) 9,398 (192)

$9,206
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Tanger Reports First Quarter 2012 Results

Basicearningspercommonshare: Netincome Dilutedearningspercommonshare: Netincome

$.09 $.09

$.11 $.11

(a)Includesstraightlinerentandmarketrentadjustmentsof$1,345and$948forthethreemonthsended March31,2012and2011,respectively. (b)RepresentspotentialacquisitionrelatedexpensesincurredduringthethreemonthsendedMarch31, 2011. (c)Representsthewriteoffofcostsassociatedwithabandoneddevelopmentprojectsforthethree monthsendedMarch31,2011. TANGERFACTORYOUTLETCENTERS,INC.ANDSUBSIDIARIES CONSOLIDATEDBALANCESHEETS (Inthousands,exceptshareandpersharedata) (Unaudited) ASSETS Rentalproperty Land Building,improvementandfixtures Constructioninprogress Accumulateddepreciation Rentalproperty,net Cashandcashequivalents Investmentsinunconsolidatedjointventures Deferredleasecostsandotherintangiblecosts,net Deferreddebtoriginationcosts,net Prepaidsandotherassets Totalassets LIABILITIESANDEQUITY Liabilities Debt Senior,unsecurednotes(netofdiscountsof$2,171and$2,237, respectively) Unsecuredtermloans(netofdiscountof$656and$692,respectively) Mortgagespayable(includingpremiumsof$7,169and$7,434, respectively) Unsecuredlinesofcredit Totaldebt
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March31, December31, 2012 $148,002 1,773,055 4,545 1,925,602 (530,150) 1,395,452 10,787 48,483 115,157 10,775 54,304 $1,634,958 $547,829 259,344 110,483 121,073 1,038,729 $547,763 9,308 111,379 357,092 1,025,542
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2011 $148,002 1,764,494 3,549 1,916,045 (512,485) 1,403,560 7,894 28,481 120,636 8,861 52,383 $1,621,815

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Tanger Reports First Quarter 2012 Results

Constructiontradepayables Accountspayableandaccruedexpenses Otherliabilities Totalliabilities Commitmentsandcontingencies Equity TangerFactoryOutletCenters,Inc. Commonshares,$.01parvalue,300,000,000sharesauthorized, 92,627,388and86,727,656sharesissuedandoutstandingat March31,2012andDecember31,2011,respectively(1) Paidincapital
(1)

15,698 43,165 16,399 1,113,991 926 751,633 (271,941) 1,449 482,067

(1)

13,656 37,757 16,428 1,093,383 867 720,073 (261,913) 1,535 460,562

Accumulateddistributionsinexcessofnetincome Accumulatedothercomprehensiveincome EquityattributabletoTangerFactoryOutletCenters,Inc. Equityattributabletononcontrollinginterests: NoncontrollinginterestsinOperatingPartnership Totalequity Totalliabilitiesandequity Noncontrollinginterestsinotherconsolidatedpartnerships

32,068 6,832 520,967 $1,634,958

61,027 6,843 528,432 $1,621,815

(1)AsofMarch31,2012,reflectstheexchangeof1,492,865unitsoftheOperatingPartnershipownedby noncontrollinginterestsinto5,971,460commonsharesofthecompany. TANGERFACTORYOUTLETCENTERS,INC.ANDSUBSIDIARIES SUPPLEMENTALINFORMATION (inthousands,exceptpershare,stateandcenterinformation) (Unaudited) FUNDSFROMOPERATION(a) Netincome Adjustedfor: Depreciationandamortizationuniquelysignificantto realestateconsolidated Depreciationandamortizationuniquelysignificantto realestateunconsolidatedjointventures Fundsfromoperations(FFO) FFOattributabletononcontrollinginterestsinotherconsolidatedpartnerships Allocationofearningstoparticipatingsecurities Fundsfromoperationsavailabletocommonshareholders Fundsfromoperationsavailabletocommonshareholderspersharediluted
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ThreeMonthsEnded March31, 2012 $8,834 25,301 1,815 35,950 (2) (308) $35,640 $.36 1,306 29,930 (310) $29,620 $.32
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2011 $10,817 17,807

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Tanger Reports First Quarter 2012 Results

WEIGHTEDAVERAGESHARES Basicweightedaveragecommonshares Effectofnotionalunits Effectofexchangeablenotes Effectofoutstandingoptions Dilutedweightedaveragecommonshares(forearningsper sharecomputations) Exchangeableoperatingpartnershipunits(b) Dilutedweightedaveragecommonshares(forfundsfromoperationsper sharecomputations) OTHERINFORMATION Grossleasableareaopenatendofperiod Consolidated Partiallyownedunconsolidated Outletcentersinoperation Consolidated Partiallyownedunconsolidated Statesoperatedinatendofperiod(c) Occupancypercentageatendofperiod(c)

89,671 1,096 65 90,832 7,858 98,690 10,726 1,193 36 3 24 97.3

80,353 125 74 80,552 12,133 92,685 9,368 948 32 2 21 96.7

(a)FFOisanonGAAPfinancialmeasure.ThemostdirectlycomparableGAAPmeasureisnetincome (loss),towhichitisreconciled.Webelievethatforaclearunderstandingofouroperatingresults,FFO shouldbeconsideredalongwithnetincomeaspresentedelsewhereinthisreport.FFOispresented becauseitisawidelyacceptedfinancialindicatorusedbycertaininvestorsandanalyststoanalyzeand compareoneequityREITwithanotheronthebasisofoperatingperformance.FFOisgenerallydefined asnetincome(loss),computedinaccordancewithgenerallyacceptedaccountingprinciples,before extraordinaryitemsandgains(losses)onsaleordisposalofdepreciableoperatingproperties,plus depreciationandamortizationuniquelysignificanttorealestate,impairmentlossesondepreciablereal estateofconsolidatedrealestate,impairmentlossesoninvestmentsinunconsolidatedjointventures drivenbyameasurabledecreaseinthefairvalueofdepreciablerealestateheldbytheunconsolidated jointventuresandafteradjustmentsforunconsolidatedpartnershipsandjointventures.Wecautionthat thecalculationofFFOmayvaryfromentitytoentityandassuchthepresentationofFFObyusmaynot becomparabletoothersimilarlytitledmeasuresofotherreportingcompanies.FFOdoesnotrepresent netincomeorcashflowfromoperationsasdefinedbyaccountingprinciplesgenerallyacceptedinthe UnitedStatesofAmericaandshouldnotbeconsideredanalternativetonetincomeasanindicationof operatingperformanceortocashflowsfromoperationsasameasureofliquidity.FFOisnotnecessarily indicativeofcashflowsavailabletofunddividendstoshareholdersandothercashneeds. (b)Theexchangeableoperatingpartnershipunits(noncontrollinginterestinoperatingpartnership)are notdilutiveonearningspersharecomputedinaccordancewithgenerallyacceptedaccounting principles. (c)ExcludestheWisconsinDells,WisconsinDeerPark,NewYorkandCookstown,Ontarioproperties whichwehaveownershipinterestsinbutareheldinunconsolidatedjointventures.

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Tanger Reports First Quarter 2012 Results

Source:TangerFactoryOutletCenters,Inc.

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