EX-99.2 3 skt8kex992december312017.htm EXHIBIT 99.2 Exhibit


Exhibit 99.2
tangerlargea01a03a04.jpg
Tanger Factory Outlet Centers, Inc.
  
Supplemental Operating and Financial Data
December 31, 2017



Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2017

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Notice
  
  
For a more detailed discussion of the factors that affect our operating results, interested parties should review the Tanger Factory Outlet Centers, Inc. Annual Report on Form 10-K for the fiscal year ended December 31, 2016 and for the fiscal year ended December 31, 2017 (when available).
 
This Supplemental Portfolio and Financial Data is not an offer to sell or a solicitation to buy any securities of the Company. Any offers to sell or solicitations to buy any securities of the Company shall be made only by means of a prospectus.


2
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2017
tangeroutlet-small93015a03.jpg


Table of Contents
Section
 
 
 
Portfolio Data:
 
 
 
Geographic Diversification
Property Summary - Occupancy at End of Each Period Shown
Portfolio Occupancy at the End of Each Period
Average Tenant Sales Per Square Foot by Outlet Center Ranking
Major Tenants
Lease Expirations as of December 31, 2017
Leasing Activity
 
 
Financial Data:
 
 
 
Consolidated Balance Sheets
Consolidated Statements of Operations
Unconsolidated Joint Venture Information
Debt Outstanding Summary
Future Scheduled Principal Payments
Senior Unsecured Notes Financial Covenants
 
 
Non-GAAP Supplemental Measures:
 
 
 
Non-GAAP Definitions
FFO and FAD Analysis
Portfolio NOI and Same Center NOI
Pro Rata Balance Sheet Information
Pro Rata Statement of Operations Information
 
 
Investor Information


3
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2017
tangeroutlet-small93015a03.jpg


Geographic Diversification
As of December 31, 2017
Consolidated Properties
State
# of Centers
 
GLA
 
% of GLA
South Carolina
5

 
1,599,024

 
12
%
New York
2

 
1,478,780

 
11
%
Georgia
3

 
1,121,579

 
9
%
Texas
3

 
1,001,357

 
8
%
Pennsylvania
3

 
997,721

 
8
%
Michigan
2

 
671,539

 
5
%
Delaware
1

 
557,404

 
4
%
Alabama
1

 
556,677

 
4
%
North Carolina
3

 
505,080

 
4
%
New Jersey
1

 
489,706

 
4
%
Tennessee
1

 
448,355

 
3
%
Ohio
1

 
411,793

 
3
%
Arizona
1

 
410,783

 
3
%
Florida
1

 
351,704

 
3
%
Missouri
1

 
329,861

 
3
%
Louisiana
1

 
321,066

 
3
%
Mississippi
1

 
320,341

 
3
%
Utah
1

 
319,661

 
2
%
Connecticut
1

 
311,614

 
2
%
Iowa
1

 
276,331

 
2
%
New Hampshire
1

 
250,107

 
2
%
Maryland
1

 
199,425

 
2
%
Total
36

 
12,929,908

 
100
%
 
 
 
 
 
 
Unconsolidated Joint Venture Properties
 
 
 
 
 
 
 
 
 
 
 
 
# of Centers
 
GLA
 
Ownership %
Charlotte, NC
1

 
397,857

 
50.00
%
Columbus, OH
1

 
355,220

 
50.00
%
Ottawa, ON
1

 
354,978

 
50.00
%
Texas City, TX
1

 
352,705

 
50.00
%
National Harbor, MD
1

 
341,156

 
50.00
%
Cookstown, ON
1

 
307,779

 
50.00
%
Bromont, QC
1

 
161,307

 
50.00
%
Saint-Sauveur, QC
1

 
99,405

 
50.00
%
Total
8

 
2,370,407

 
 
 
 
 
 
 
 
Grand Total
44

 
15,300,315

 
 



4
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2017
tangeroutlet-small93015a03.jpg


Property Summary - Occupancy at End of Each Period Shown
Consolidated properties
Location
Total GLA
12/31/17
 
% Occupied
12/31/17
 
% Occupied
12/31/16
 
Deer Park, NY
749,074

 
95
%
 
97
%
 
Riverhead, NY
729,706

 
99
%
 
99
%
 
Rehoboth Beach, DE
557,404

 
98
%
 
99
%
 
Foley, AL
556,677

 
99
%
 
99
%
 
Atlantic City, NJ
489,706

 
88
%
 
90
%
 
San Marcos, TX
471,816

 
99
%
 
98
%
 
Sevierville, TN
448,355

 
100
%
 
100
%
 
Savannah, GA
429,089

 
98
%
 
99
%
 
Myrtle Beach Hwy 501, SC
425,334

 
94
%
 
98
%
 
Jeffersonville, OH
411,793

 
95
%
 
96
%
 
Glendale, AZ (Westgate)
410,783

 
99
%
 
100
%
 
Myrtle Beach Hwy 17, SC
403,339

 
100
%
 
98
%
 
Charleston, SC
382,117

 
98
%
 
97
%
 
Lancaster, PA
377,263

 
95
%
 
98
%
 
Pittsburgh, PA
372,958

 
99
%
 
99
%
 
Commerce, GA
371,408

 
98
%
 
100
%
 
Grand Rapids, MI
357,080

 
96
%
 
97
%
 
Fort Worth, TX
351,741

 
94
%
 
N/A

 
Daytona Beach, FL
351,704

 
100
%
 
94
%
 
Branson, MO
329,861

 
100
%
 
100
%
 
Locust Grove, GA
321,082

 
99
%
 
100
%
 
Gonzales, LA
321,066

 
99
%
 
99
%
 
Southaven, MS
320,341

 
99
%
 
97
%
 
Park City, UT
319,661

 
98
%
 
100
%
 
Mebane, NC
318,910

 
100
%
 
100
%
 
Howell, MI
314,459

 
98
%
 
94
%
 
Mashantucket, CT (Foxwoods)
311,614

 
94
%
 
96
%
 
Williamsburg, IA
276,331

 
96
%
 
99
%
 
Tilton, NH
250,107

 
93
%
 
99
%
 
Hershey, PA
247,500

 
100
%
 
100
%
 
Hilton Head II, SC
206,564

 
94
%
 
100
%
 
Ocean City, MD
199,425

 
98
%
 
80
%
 
Hilton Head I, SC
181,670

 
99
%
 
100
%
 
Terrell, TX
177,800

 
96
%
 
98
%
 
Blowing Rock, NC
104,009

 
98
%
 
98
%
 
Nags Head, NC
82,161

 
97
%
 
96
%
 
Westbrook, CT (1)
N/A

 
N/A

 
86
%
 
Total
12,929,908

 
97
%
(2) 
98
%
(3) 
(1)
Sold Westbrook outlet center in May 2017.
(2)
Excludes the occupancy rate at our Fort Worth and Daytona Beach outlet centers which opened during the fourth quarter of 2017 and 2016, respectively, and have not yet stabilized.
(3)
Excludes the occupancy rate of centers not stabilized (our Foxwoods, Southaven, and Daytona outlet centers, which opened during the second quarter of 2015, fourth quarter of 2015, and fourth quarter of 2016, respectively).




5
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2017
tangeroutlet-small93015a03.jpg



Unconsolidated joint venture properties
Location
Total GLA
12/31/17
 
% Occupied
12/31/17
 
% Occupied
12/31/16
 
Charlotte, NC
397,857

 
99
%
 
98
%
 
Columbus, OH
355,220

 
97
%
 
98
%
 
Ottawa, ON
354,978

 
95
%
 
99
%
 
Texas City, TX (Galveston/Houston)
352,705

 
99
%
 
99
%
 
National Harbor, MD
341,156

 
99
%
 
99
%
 
Cookstown, ON
307,779

 
99
%
 
99
%
 
Bromont, QC
161,307

 
72
%
 
69
%
 
Saint-Sauveur, QC
99,405

 
96
%
 
97
%
 
Total
2,370,407

 
96
%
 
96
%
(1) 
(1)
Excludes the occupancy rate at our Columbus outlet center which opened in June 2016 and had not yet stabilized.


6
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2017
tangeroutlet-small93015a03.jpg


Portfolio Occupancy at the End of Each Period (1) 
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(1) Excludes unconsolidated outlet centers. See table on page 4.




7
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2017
tangeroutlet-small93015a03.jpg


Average Tenant Sales Per Square Foot by Outlet Center Ranking As of December 31, 2017 (1) 
 Ranking (2)
12 Months
 SPSF
 Period End
 Occupancy
  Sq Ft
(thousands)
% of
 Square Feet
% of
Portfolio
NOI (3)
Consolidated Centers
 
 
 
 
Centers 1 - 5
$
516

98
%
2,803

22
%
31
%
Centers 6 - 10
$
433

99
%
1,703

14
%
16
%
Centers 11 - 15
$
386

99
%
1,681

14
%
14
%
Centers 16 - 20
$
351

96
%
1,684

14
%
13
%
Centers 21 - 25
$
320

97
%
1,824

15
%
13
%
Centers 26 - 30
$
281

96
%
1,561

13
%
9
%
Centers 31 - 34
$
254

96
%
970

8
%
4
%
 
 
 
 
 
 
 Ranking (2)
Cumulative 12 Months
 SPSF
 Cumulative Period End
 Occupancy
  Cumulative Sq Ft
(thousands)
Cumulative % of
 Square Feet
Cumulative % of
Portfolio
NOI (3)
Consolidated Centers
 
 
 
 
Centers 1 - 5
$
516

98
%
2,803

22
%
31
%
Centers 1 - 10
$
484

98
%
4,506

36
%
47
%
Centers 1 - 15
$
454

98
%
6,187

50
%
61
%
Centers 1 - 20
$
431

98
%
7,871

64
%
74
%
Centers 1 - 25
$
409

98
%
9,695

79
%
87
%
Centers 1 - 30
$
391

97
%
11,256

92
%
96
%
Centers 1 - 34
$
380

97
%
12,226

100
%
100
%
 
 
 
 
 
 
Unconsolidated centers (4)
$
437

99
%
1,447

n/a

n/a

Domestic centers (5)
$
387

97
%
13,673

n/a

n/a

 
 
(1)
Sales are based on reports for the trailing 12 months by retailers which have occupied outlet center stores for a minimum of 12 months. Sales per square foot are based on all stores less than 20,000 square feet in size. Centers are ranked by sales per square foot for the rolling twelve months ended December 31, 2017. Excludes outlet centers open less than 12 full calendar months (Fort Worth, Texas opened in October 2017) and centers which have not yet stabilized (Daytona Beach, Florida opened November 2016).
 
 
 
 
 
 
 
 
(2)
Outlet centers included in each ranking group above are as follows (in alphabetical order):
 
Centers 1 - 5:
Deer Park, NY
Mebane, NC
Rehoboth Beach, DE
Riverhead, NY
Sevierville, TN
 
 
Centers 6 - 10:
Branson, MO
Hilton Head I, SC
Lancaster, PA
Myrtle Beach 17, SC
Westgate (Glendale), AZ
 
 
Centers 11 - 15:
Charleston, SC
Grand Rapids, MI
Hershey, PA
Locust Grove, GA
Pittsburgh, PA
 
 
Centers 16 - 20:
Atlantic City, NJ
Gonzales, LA
Nags Head, NC
Park City, UT
San Marcos, TX
 
 
Centers 21 - 25:
Foley, AL
Foxwoods (Mashantucket), CT
Hilton Head II, SC
Savannah, GA
Southaven (Memphis), MS
 
 
Centers 26 - 30:
Commerce, GA
Howell, MI
Myrtle Beach 501, SC
Ocean City, MD
Tilton, NH
 
 
Centers 31 - 34:
Blowing Rock, NC
Jeffersonville, OH
Terrell, TX
Williamsburg, IA

 
 
 
 
 
 
 
 
 
(3)
Based on the Company’s forecast of 2018 Portfolio NOI (see Non-GAAP Definitions). The Company’s forecast is based on management’s estimates as of December 31, 2017 and may be considered a forward-looking statement which is subject to risks and uncertainties. Actual results could differ materially from those projected due to various factors including, but not limited to, the risks associated with general economic and real estate conditions. For a more detailed discussion of the factors that affect 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, 2016.
 
 
(4)
Includes domestic outlet centers open 12 full calendar months (in alphabetical order):
 
Unconsolidated:
Charlotte, NC
Columbus, OH
National Harbor, MD
Texas City (Houston), TX
 
 
(5)
Includes consolidated portfolio and domestic unconsolidated joint ventures

8
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2017
tangeroutlet-small93015a03.jpg


Major Tenants (1) 
Ten Largest Tenants as of December 31, 2017  
Tenant
# of
Stores
 
GLA
 
% of
Total GLA
The Gap, Inc.
95

 
995,902

 
7.7
%
Ascena Retail Group, Inc.
147

 
883,900

 
6.8
%
Nike, Inc.
45

 
471,537

 
3.7
%
PVH Corp.
67

 
410,108

 
3.2
%
H&M Hennes & Mauritz L.P.
19

 
407,342

 
3.2
%
Ralph Lauren Corporation
38

 
376,855

 
2.9
%
V. F. Corporation
45

 
366,040

 
2.8
%
G-III Apparel Group, Ltd.
63

 
292,110

 
2.3
%
Carter's, Inc.
62

 
267,506

 
2.0
%
Under Armour, Inc.
33

 
257,396

 
2.0
%
Total of All Listed Above
614

 
4,728,696

 
36.6
%
(1)
Excludes unconsolidated outlet centers. See table on page 4.


9
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2017
tangeroutlet-small93015a03.jpg


Lease Expirations as of December 31, 2017

Percentage of Total Gross Leasable Area (1) 
skt8kex99_chart-27808a02.jpg

Percentage of Total Annualized Base Rent (1) 
skt8kex99_chart-29848a02.jpg

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


10
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2017
tangeroutlet-small93015a03.jpg


Leasing Activity (1)  
 
TTM ended
 
TTM ended
 
12/31/2017
 
12/31/2016
Re-tenanted Space:
 

 
 

Number of leases
70

 
124

Gross leasable area
247,438

 
384,224

New initial rent per square foot
$
40.02

 
$
37.78

Prior expiring rent per square foot
$
36.30

 
$
33.15

Percent increase  (2)
10.3
%
 
14.0
%
 
 
 
 
New straight line rent per square foot
$
44.63

 
$
42.84

Prior straight line rent per square foot
$
35.48

 
$
32.15

Percent increase (2)
25.8
%
 
33.2
%
 
 
 
 
Renewed Space:
 
 
 
Number of leases
273

 
259

Gross leasable area
1,260,666

 
1,186,692

New initial rent per square foot
$
29.24

 
$
30.62

Prior expiring rent per square foot
$
28.70

 
$
28.22

Percent increase
1.9
%
 
8.5
%
 
 
 
 
New straight line rent per square foot
$
30.65

 
$
32.26

Prior straight line rent per square foot
$
28.21

 
$
27.44

Percent increase
8.7
%
 
17.6
%
 
 
 
 
Total Re-tenanted and Renewed Space:
 
 
 
Number of leases
343

 
383

Gross leasable area
1,508,104

 
1,570,916

New initial rent per square foot
$
27.95

 
$
32.37

Prior expiring rent per square foot
$
26.99

 
$
29.42

Percent increase (2)
3.6
%
 
10.0
%
 
 
 
 
New straight line rent per square foot
$
29.69

 
$
34.85

Prior straight line rent per square foot
$
26.50

 
$
28.59

Percent increase (2)
12.1
%
 
21.9
%
(1)
Represents change in rent (base rent and common area maintenance) for leases for new stores that opened or renewals that started during the respective trailing twelve month periods, excluding temporary tenants and month to month leases. Includes consolidated portfolio outlet centers owned as of current period end date. Excludes unconsolidated outlet centers. See table on page 4.
(2)
Excludes 9 leases (165,213 square feet) with an average suite size of approximately 18,400 square feet related to re-merchandising projects. Rent spreads including these leases were as follows:
 
TTM ended
 
12/31/2017
Re-tenanted Space:
 

Cash basis
(2.2
)%
Straight-line basis
9.1
 %
 
 
Total Re-tenanted and Renewed Space:
 

Cash basis
0.8
 %
Straight-line basis
8.8
 %

11
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2017
tangeroutlet-small93015a03.jpg

Consolidated Balance Sheets (dollars in thousands)
 
December 31,
 
December 31,
 
2017
 
2016
Assets
 
 
 
   Rental property:
 
 
 
   Land
$
279,978

 
$
272,153

   Buildings, improvements and fixtures
2,793,638

 
2,647,477

   Construction in progress
14,854

 
46,277

 
3,088,470

 
2,965,907

   Accumulated depreciation
(901,967
)
 
(814,583
)
      Total rental property, net
2,186,503

 
2,151,324

   Cash and cash equivalents
6,101

 
12,222

   Investments in unconsolidated joint ventures
119,436

 
128,104

   Deferred lease costs and other intangibles, net
132,061

 
151,579

   Prepaids and other assets
96,004

 
82,985

         Total assets
$
2,540,105

 
$
2,526,214

 
 
 
 
Liabilities and Equity
 
 
 
Liabilities
 
 
 
   Debt:
 
 
 
Senior, unsecured notes, net
$
1,134,755

 
$
1,135,309

Unsecured term loan, net
322,975

 
322,410

Mortgages payable, net
99,761

 
172,145

Unsecured lines of credit, net
206,160

 
58,002

Total debt
1,763,651

 
1,687,866

Accounts payable and accrued expenses
90,416

 
78,143

Other liabilities
73,736

 
54,764

         Total liabilities
1,927,803

 
1,820,773

Commitments and contingencies
 
 
 
Equity
 
 
 
Tanger Factory Outlet Centers, Inc.:
 
 
 
Common shares, $.01 par value, 300,000,000 shares authorized, 94,560,536 and 96,095,891 shares issued and outstanding at December 31, 2017 and December 31, 2016, respectively
946

 
961

   Paid in capital
784,782

 
820,251

   Accumulated distributions in excess of net income
(184,865
)
 
(122,701
)
   Accumulated other comprehensive loss
(19,285
)
 
(28,295
)
         Equity attributable to Tanger Factory Outlet Centers, Inc.
581,578

 
670,216

Equity attributable to noncontrolling interests:
 
 
 
Noncontrolling interests in Operating Partnership
30,724

 
35,066

Noncontrolling interests in other consolidated partnerships
—

 
159

         Total equity
612,302

 
705,441

            Total liabilities and equity
$
2,540,105

 
$
2,526,214




12
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2017
tangeroutlet-small93015a03.jpg


Consolidated Statements of Operations (in thousands, except per share data)
 
Three months ended
 
Year ended
 
December 31,
 
December 31,
 
2017
 
2016
 
2017
 
2016
Revenues:
 
 
 
 
 
 
 
Base rentals
$
82,518

 
$
81,158

 
$
323,985

 
$
308,353

Percentage rentals
3,055

 
3,750

 
9,853

 
11,221

Expense reimbursements
38,016

 
36,697

 
142,817

 
133,818

Management, leasing and other services
676

 
588

 
2,452

 
3,847

Other income
2,222

 
2,366

 
9,127

 
8,595

Total revenues
126,487

 
124,559

 
488,234

 
465,834

Expenses:
 
 
 
 
 
 
 
Property operating
40,161

 
41,689

 
155,235

 
152,017

General and administrative
10,158

 
11,328

 
44,004

 
46,696

Acquisition costs
—

 
—

 
—

 
487

Abandoned pre-development costs
—

 
—

 
528

 
—

Depreciation and amortization
32,569

 
33,279

 
127,744

 
115,357

Total expenses
82,888

 
86,296

 
327,511

 
314,557

Operating income
43,599

 
38,263

 
160,723

 
151,277

Other income (expense):
 
 
 
 
 
 
 
Interest expense
(15,329
)
 
(16,469
)
 
(64,825
)
 
(60,669
)
Loss on early extinguishment of debt
—

 
—

 
(35,626
)
 
—

Gain on sale of assets
—

 
—

 
6,943

 
6,305

Gain on previously held interest in acquired joint ventures
—

 
—

 
—

 
95,516

Other non-operating income
2,041

 
650

 
2,724

 
1,028

Income before equity in earnings of unconsolidated joint ventures
30,311

 
22,444

 
69,939

 
193,457

Equity in earnings of unconsolidated joint ventures
3,138

 
3,192

 
1,937

 
10,872

Net income
33,449

 
25,636

 
71,876

 
204,329

Noncontrolling interests in Operating Partnership
(1,689
)
 
(1,278
)
 
(3,609
)
 
(10,287
)
Noncontrolling interests in other consolidated partnerships
(265
)
 
(285
)
 
(265
)
 
(298
)
Net income attributable to Tanger Factory Outlet Centers, Inc.
31,495

 
24,073

 
68,002

 
193,744

Allocation of earnings to participating securities
(302
)
 
(280
)
 
(1,209
)
 
(1,926
)
Net income available to common shareholders of
Tanger Factory Outlet Centers, Inc.
$
31,193

 
$
23,793

 
$
66,793

 
$
191,818

 
 
 
 
 
 
 
 
Basic earnings per common share:
 
 
 
 
 
 
 
Net income
$
0.33

 
$
0.25

 
$
0.71

 
$
2.02

 
 
 
 
 
 
 
 
Diluted earnings per common share:
 
 
 
 
 
 
 
Net income
$
0.33

 
$
0.25

 
$
0.71

 
$
2.01



13
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2017
tangeroutlet-small93015a03.jpg


Unconsolidated Joint Venture Information  

The following table details certain information as of December 31, 2017, except for Net Operating Income ("NOI") which is for the year ended December 31, 2017, about various unconsolidated real estate joint ventures in which we have an ownership interest (dollars in millions):
Joint Venture
 
Center Location
 
Tanger's Ownership %
 
Square Feet
 
Tanger's Share of Total Assets
 
Tanger's Share of NOI
 
Tanger's Share of Net Debt (1)
Charlotte
 
Charlotte, NC
 
50.0
%
 
397,857

 
$
41.5

 
$
7.1

 
$
44.9

Columbus
 
Columbus, OH
 
50.0
%
 
355,220

 
43.5

 
5.1

 
42.2

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

 
28.0

 
4.7

 
39.7

National Harbor
 
National Harbor, MD
 
50.0
%
 
341,156

 
46.4

 
5.5

 
43.2

RioCan Canada (2)
 
Various
 
50.0
%
 
923,469

 
121.7

 
7.6

(3) 
5.6

Total
 
 
 
 
 
2,370,407

 
$
281.1

 
$
30.0

 
$
175.6

(1)
Net of debt origination costs and premiums.
(2)
Includes a 161,307 square foot center in Bromont, Quebec; a 307,779 square foot center in Cookstown, Ontario; a 354,978 square foot center in Ottawa, Ontario; and a 99,405 square foot center in Saint-Sauveur, Quebec.
(3)
Excludes impairment charges related to the Bromont and Saint-Sauveur centers, in which our share was $9.0 million.


14
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2017
tangeroutlet-small93015a03.jpg


Debt Outstanding Summary
As of December 31, 2017
(dollars in thousands)
 
Total Debt Outstanding
 
Our Share of Debt
 
Stated
Interest Rate
 
End of Period Effective Interest Rate(1) 
 
Maturity
Date (2)
 
Weighted Average Years to Maturity (2)
Consolidated Debt:
 
 
 
 
 
 
 
 
 
 
 
Unsecured debt:
 

 
 
 
 
 
 
 
 
 
 
Unsecured lines of credit(3)
$
208,100

 
$
208,100

 
LIBOR + 0.90%

 
2.47
%
 
10/29/2020
 
2.8

2023 Senior unsecured notes
250,000

 
250,000

 
3.875%

 
4.08
%
 
12/1/2023
 
5.9

2024 Senior unsecured notes
250,000

 
250,000

 
3.75
%
 
3.82
%
 
12/1/2024
 
6.9

2026 Senior unsecured notes
350,000

 
350,000

 
3.125
%
 
3.19
%
 
9/1/2026
 
8.7

2027 Senior unsecured notes
300,000

 
300,000

 
3.875
%
 
3.93
%
 
7/15/2027
 
9.5

Unsecured term loan
325,000

 
325,000

 
LIBOR + 0.95%

 
2.11
%
 
4/13/2021
 
3.3

Net debt discounts and debt origination costs
(19,209
)
 
(19,209
)
 
 

 
 
 
 
 
 
Total net unsecured debt
1,663,891

 
1,663,891

 
 

 
3.30
%
 
 
 
6.4

Secured mortgage debt:
 
 
 
 
 
 
 
 
 
 
 
Atlantic City, NJ
37,462

 
37,462

 
5.14% - 7.65%

 
5.05
%
 
11/15/2021 - 12/8/2026
 
6.8

Southaven, MS
60,000

 
60,000

 
LIBOR + 1.75%

 
3.32
%
 
4/29/2020
 
2.3

Debt premium and debt origination costs
2,298

 
2,298

 
 
 
 
 
 
 
 
Total net secured mortgage debt
99,760

 
99,760

 
 
 
3.99
%
 
 
 
4.1

Total consolidated debt
1,763,651

 
1,763,651

 
 
 
3.33
%
 
 
 
6.3

Unconsolidated JV debt:
 

 
 
 
 

 
 
 
 
 
 
Charlotte 
90,000

 
45,000

 
LIBOR + 1.45%

 
3.02
%
 
11/24/2019
 
1.9

Columbus
85,000

 
42,500

 
LIBOR + 1.65%

 
3.22
%
 
11/28/2021
 
3.9

Galveston/Houston(4)
80,000

 
40,000

 
LIBOR + 1.65%

 
3.22
%
 
7/1/2022
 
4.5

National Harbor
87,000

 
43,500

 
LIBOR + 1.65%

 
3.22
%
 
11/13/2019
 
1.9

RioCan Canada
10,734

 
5,367

 
5.75
%
 
4.18
%
 
5/10/2020
 
2.4

Debt premium and debt origination costs
(1,474
)
 
(737
)
 
 
 
 
 
 
 
 
Total unconsolidated JV net debt
351,260

 
175,630

 
 

 
3.20
%
 
 
 
3.0

Total
$
2,114,911

 
$
1,939,281

 
 
 
3.31
%
 
 
 
5.7

(1)
The effective interest rate includes the impact of discounts and premiums and interest rate swap agreements, as applicable. See page 17 for additional details.
(2)
Includes applicable extensions available at our option.
(3)
At December 31, 2017, the Company had an unsecured, syndicated credit line with a borrowing capacity totaling $500.0 million and a separate cash management line of credit with a borrowing capacity of $20.0 million with one of the participants in the syndication. A 15 basis point facility fee is due annually on the entire committed amount of each facility. The syndicated credit line could be increased to $1.0 billion through an accordion feature in certain circumstances. On January 9, 2018, we closed on amendments to our unsecured lines of credit, which increased the borrowing capacity from $520.0 million to $600.0 million and extended the maturity date from October 2019 to October 2021, with a one-year extension option. We also reduced the interest rate spread over LIBOR from 0.90% to 0.875%, increased the incremental borrowing availability through an accordion feature on the syndicated line from $1.0 billion to $1.2 billion.
(4)
In July 2017, the joint venture amended and restated the initial construction loan to increase the amount available to borrow from $70.0 million to $80.0 million and extended the maturity date until July 2020 with two one-year options. The amended and restated loan also changed the interest rate from LIBOR + 1.50% to an interest rate of LIBOR + 1.65%. At the closing of the amendment, the joint venture distributed approximately $14.5 million equally between the partners.

15
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2017
tangeroutlet-small93015a03.jpg


Summary of Our Share of Fixed and Variable Rate Debt
As of December 31, 2017
(dollars in thousands)
 
Total Debt %
 
Our Share of Debt
 
End of Period Effective Interest Rate
 
Average Years to Maturity (1)
 
 

 
 
 
 
 
 
Consolidated:
 
 
 
 
 
 
 
Fixed (2)
85
%
 
$
1,497,610

 
3.40
%
 
6.9
Variable
15
%
 
266,041

 
2.95
%
 
2.7
 
100
%
 
1,763,651

 
3.33
%
 
6.3
Unconsolidated Joint ventures:
 
 


 
 
 
 
Fixed
3
%
 
$
5,550

 
4.18
%
 
2.4
Variable
97
%
 
170,080

 
3.17
%
 
3.0
 
100
%
 
175,630

 
3.20
%
 
3.0
Total:
 
 
 
 
 
 
 
Fixed
78
%
 
1,503,160

 
3.41
%
 
6.9
Variable
22
%
 
436,121

 
3.07
%
 
2.9
Total share of debt
100
%
 
$
1,939,281

 
3.31
%
 
5.7
(1)
Includes applicable extensions available at our option.
(2)
The effective interest rate includes interest rate swap agreements that fix the base LIBOR rate at an average of 1.16% on notional amounts aggregating $325.0 million as follows:
(a)
Interest rate swaps entered into in October 2013 to hedge our variable interest rate exposure on notional amounts aggregating $150.0 million. These interest rate swap agreements fix the base LIBOR rate at an average of 1.30% through August 14, 2018, and
(b)
Interest rate swaps entered into in April 2016 to hedge our variable interest rate exposure on notional amounts aggregating $175.0 million. These interest rate swap agreements fix the base LIBOR rate at an average of 1.03% through January 1, 2021.




16
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2017
tangeroutlet-small93015a03.jpg


Future Scheduled Principal Payments (dollars in thousands)(1)
As of December 31, 2017
Year
Tanger
Consolidated
Payments
 
Tanger's Share
of Unconsolidated
JV Payments
 
Total
Scheduled
Payments
2018
$
3,184

 
$
304

 
$
3,488

2019
3,369

 
88,821

 
92,190

2020(2)
271,666

 
4,742

 
276,408

2021
330,793

 
42,500

 
373,293

2022
4,436

 
40,000

 
44,436

2023
254,768

 
—

 
254,768

2024
255,140

 
—

 
255,140

2025
1,501

 
—

 
1,501

2026
355,705

 
—

 
355,705

2027
300,000

 
—

 
300,000

2028 & thereafter
—

 
—

 
—

 
$
1,780,562

 
$
176,367

 
$
1,956,929

Net debt discounts and debt origination costs
(16,911
)
 
(737
)
 
(17,648
)
 
$
1,763,651

 
$
175,630

 
$
1,939,281

(1)
Includes applicable extensions available at our option.
(2)
Includes principal balance of $208.1 million outstanding under the Company's unsecured lines of credit.
Senior Unsecured Notes Financial Covenants (1) 
As of December 31, 2017
 
Required
 
Actual
 
Compliance
Total Consolidated Debt to Adjusted Total Assets
<60%
 
51
%
 
Yes
Total Secured Debt to Adjusted Total Assets
<40%
 
3
%
 
Yes
Total Unencumbered Assets to Unsecured Debt
>150%
 
187
%
 
Yes
Consolidated Income Available for Debt Service to Annual Debt Service Charge
>1.5
 
5.03

 
Yes
(1)
For a complete listing of all debt covenants related to the Company's Senior Unsecured Notes, as well as definitions of the above terms, please refer to the Company's filings with the Securities and Exchange Commission.


17
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2017
tangeroutlet-small93015a03.jpg


NON-GAAP SUPPLEMENTAL MEASURES

Funds From Operations

Funds From Operations ("FFO") is a widely used measure of the operating performance for real estate companies that supplements net income (loss) determined in accordance with GAAP. We determine FFO based on the definition set forth by the National Association of Real Estate Investment Trusts ("NAREIT"), of which we are a member. FFO represents net income (loss) (computed in accordance with GAAP) before extraordinary items and gains (losses) on sale or disposal of depreciable operating properties, plus depreciation and amortization of real estate assets, 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.

FFO is intended to exclude historical cost depreciation of real estate as required by GAAP which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization of real estate assets, gains and losses from property dispositions and extraordinary items, it provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities and interest costs, providing perspective not immediately apparent from net income.

We present FFO because we consider it an important supplemental measure of our operating performance. In addition, a portion of cash bonus compensation to certain members of management is based on our FFO or Adjusted Funds From Operations ("AFFO"), which is described in the section below. We believe it is useful for investors to have enhanced transparency into how we evaluate our performance and that of our management. In addition, FFO is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is also widely used by us and others in our industry to evaluate and price potential acquisition candidates. NAREIT has encouraged its member companies to report their FFO as a supplemental, industry-wide standard measure of REIT operating performance.

FFO has significant limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:

•
FFO does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments;

•
FFO does not reflect changes in, or cash requirements for, our working capital needs;

•
Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and FFO does not reflect any cash requirements for such replacements;

•
FFO, which includes discontinued operations, may not be indicative of our ongoing operations; and

•
Other companies in our industry may calculate FFO differently than we do, limiting its usefulness as a comparative measure.

Because of these limitations, FFO should not be considered as a measure of discretionary cash available to us to invest in the growth of our business or our dividend paying capacity. We compensate for these limitations by relying primarily on our GAAP results and using FFO only as a supplemental measure.

Adjusted Funds From Operations

We present AFFO as a supplemental measure of our performance. We define AFFO as FFO further adjusted to eliminate the impact of certain items that we do not consider indicative of our ongoing operating performance. These further adjustments are itemized in the table below. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating AFFO you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of AFFO should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

We present AFFO because we believe it assists investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we believe it is useful for investors to have enhanced transparency into how we evaluate management’s performance and the effectiveness of our business strategies. We use AFFO when certain material, unplanned transactions occur as a factor in evaluating management's performance and to evaluate the effectiveness of our business strategies, and may use AFFO when determining incentive compensation.


18
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2017
tangeroutlet-small93015a03.jpg


AFFO has limitations as an analytical tool. Some of these limitations are:

•
AFFO does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments;

•
AFFO does not reflect changes in, or cash requirements for, our working capital needs;

•
Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and AFFO does not reflect any cash requirements for such replacements;

•
AFFO does not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of our ongoing operations; and

•
Other companies in our industry may calculate AFFO differently than we do, limiting its usefulness as a comparative measure.

Because of these limitations, AFFO should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using AFFO only as a supplemental measure.

Funds Available for Distribution

Funds Available for Distribution ("FAD") is a non-GAAP financial measure that we define as FFO, excluding corporate depreciation, amortization of finance costs, amortization of net debt discount (premium), amortization of share-based compensation, straight line rent amounts, market rent amounts, less 2nd generation tenant allowances, capital improvement expenditures, and our share of the items listed above for our unconsolidated joint ventures. Investors, analysts and the Company utilize FAD as an indicator of common dividend potential. The FAD payout ratio, which represents regular distributions to common shareholders and unit holders of the Operating Partnership expressed as a percentage of FAD, facilitates the comparison of dividend coverage between REITs.

We believe that net income (loss) is the most directly comparable GAAP financial measure to FAD. FAD does not represent cash generated from operating activities in accordance with GAAP and should not be considered as an alternative to net income (loss) as an indication of our performance or to cash flows as a measure of liquidity or our ability to make distributions. Other companies in our industry may calculate FAD differently than we do, limiting its usefulness as a comparative measure.

Portfolio Net Operating Income and Same Center Net Operating Income

We present portfolio net operating income ("Portfolio NOI") and same center net operating income ("Same Center NOI") as supplemental measures of our operating performance. Portfolio NOI represents our property level net operating income which is defined as total operating revenues less property operating expenses and excludes termination fees and non-cash adjustments including straight-line rent, net above and below market rent amortization and gains or losses on the sale of outparcels recognized during the periods presented. We define Same Center NOI as Portfolio NOI for the properties that were operational for the entire portion of both comparable reporting periods and which were not acquired, or subject to a material expansion or non-recurring event, such as a natural disaster, during the comparable reporting periods.

We believe Portfolio NOI and Same Center NOI are non-GAAP metrics used by industry analysts, investors and management to measure the operating performance of our properties because they provide performance measures directly related to the revenues and expenses involved in owning and operating real estate assets and provide a perspective not immediately apparent from net income, FFO or AFFO. Because Same Center NOI excludes properties developed, redeveloped, acquired and sold; as well as non-cash adjustments, gains or losses on the sale of outparcels and termination rents; it highlights operating trends such as occupancy levels, rental rates and operating costs on properties that were operational for both comparable periods. Other REITs may use different methodologies for calculating Portfolio NOI and Same Center NOI, and accordingly, our Portfolio NOI and Same Center NOI may not be comparable to other REITs.

Portfolio NOI and Same Center NOI should not be considered alternatives to net income (loss) or as an indicator of our financial performance since they do not reflect the entire operations of our portfolio, nor do they reflect the impact of general and administrative expenses, acquisition-related expenses, interest expense, depreciation and amortization costs, other non-property income and losses, the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, or trends in development and construction activities which are significant economic costs and activities that could materially impact our results from operations. Because of these limitations, Portfolio NOI and Same Center NOI should not be viewed in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using Portfolio NOI and Same Center NOI only as supplemental measures.


19
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2017
tangeroutlet-small93015a03.jpg


Non-GAAP Pro Rata Balance Sheet and Income Statement Information

The pro rata balance sheet and pro rata income statement information is not, and is not intended to be, a presentation in accordance with GAAP. The pro rata balance sheet and pro rata income statement information reflect our proportionate economic ownership of each asset in our portfolio that we do not wholly own. These assets may be found in the table found earlier in this report entitled, “Unconsolidated Joint Venture Information.” The amounts in the column labeled “Pro Rata Portion Unconsolidated Joint Ventures” were derived on a property-by-property basis by applying to each financial statement line item the ownership percentage interest used to arrive at our share of net income or loss during the period when applying the equity method of accounting. A similar calculation was performed for the amounts in the column labeled “Pro Rata Portion Noncontrolling interests.”

We do not control the unconsolidated joint ventures and the presentations of the assets and liabilities and revenues and expenses do not represent our legal claim to such items. The operating agreements of the unconsolidated joint ventures generally provide that partners may receive cash distributions (1) quarterly, to the extent there is available cash from operations, (2) upon a capital event, such as a refinancing or sale or (3) upon liquidation of the venture. The amount of cash each partner receives is based upon specific provisions of each operating agreement and vary depending on factors including the amount of capital contributed by each partner and whether any contributions are entitled to priority distributions. Upon liquidation of the joint venture and after all liabilities, priority distributions and initial equity contributions have been repaid, the partners generally would be entitled to any residual cash remaining based on the legal ownership percentage shown in the table found earlier in this report entitled “Unconsolidated Joint Venture Information”.

We provide pro rata balance sheet and income statement information because we believe it assists investors and analysts in estimating our economic interest in our unconsolidated joint ventures when read in conjunction with the Company’s reported results under GAAP. The presentation of pro rata financial information has limitations as an analytical tool. Some of these limitations include:

•
The amounts shown on the individual line items were derived by applying our overall economic ownership interest percentage determined when applying the equity method of accounting and do not necessarily represent our legal claim to the assets and liabilities, or the revenues and expenses; and
•
Other companies in our industry may calculate their pro rata interest differently than we do, limiting the usefulness as a comparative measure.

Because of these limitations, the pro rata balance sheet and income statement information should not be considered in isolation or as a substitute for our financial statements as reported under GAAP. We compensate for these limitations by relying primarily on our GAAP results and using the pro rata balance sheet and income statement information only supplementally.



20
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2017
tangeroutlet-small93015a03.jpg


Reconciliation of Net Income to FFO and AFFO (dollars and shares in thousands)

 
 
Three months ended
 
Year ended
 
 
December 31,
 
December 31,
 
 
2017
 
2016
 
2017
 
2016
Net income
 
$
33,449

 
$
25,636

 
$
71,876

 
$
204,329

Adjusted for:
 
 
 
 
 
 
 
 
Depreciation and amortization of real estate assets - consolidated
 
31,987

 
32,653

 
125,621

 
113,645

Depreciation and amortization of real estate assets - unconsolidated joint ventures
 
2,886

 
3,438

 
13,857

 
18,910

Impairment charges - unconsolidated joint ventures
 
—

 
—

 
9,021

 
2,919

Gain on sale of assets
 
—

 
—

 
(6,943
)
 
(4,887
)
Gain on previously held interest in acquired joint ventures
 
—

 
—

 
—

 
(95,516
)
FFO
 
68,322

 
61,727

 
213,432

 
239,400

FFO attributable to noncontrolling interests in other consolidated partnerships
 
(265
)
 
(286
)
 
(265
)
 
(348
)
Allocation of earnings to participating securities
 
(597
)
 
(520
)
 
(1,943
)
 
(2,192
)
FFO available to common shareholders  (1)
 
$
67,460

 
$
60,921

 
$
211,224

 
$
236,860

As further adjusted for:
 
 
 
 
 
 
 
 
Compensation related to director and executive officer terminations (2)
 
—

 
—

 
—

 
1,180

Acquisition costs
 
—

 
—

 
—

 
487

Abandoned pre-development costs
 
—

 
—

 
528

 
—

Recoveries from litigation settlement
 
(1,844
)
 
—

 
(1,844
)
 
—

Demolition costs
 
—

 
—

 
—

 
441

Gain on sale of outparcel
 
—

 
—

 
—

 
(1,418
)
Make-whole premium due to early extinguishment of debt (3)
 
—

 
—

 
34,143

 
—

Write-off of debt discount and debt origination costs due to early extinguishment of debt (3)
 
—

 
—

 
1,483

 
882

Impact of above adjustments to the allocation of earnings to participating securities
 
16

 
—

 
(238
)
 
(15
)
AFFO available to common shareholders (1)
 
$
65,632

 
$
60,921

 
$
245,296

 
$
238,417

FFO available to common shareholders per share - diluted (1)
 
$
0.68

 
$
0.61

 
$
2.12

 
$
2.36

AFFO available to common shareholders per share - diluted (1)
 
$
0.66

 
$
0.61

 
$
2.46

 
$
2.37

 
 
 
 
 
 
 
 
 
Weighted Average Shares:
 
 
 
 
 
 
 
 
Basic weighted average common shares
 
93,691

 
95,186

 
94,506

 
95,102

Effect of notional units
 
—

 
202

 
—

 
175

Effect of outstanding options and restricted common shares
 
—

 
67

 
16

 
68

Diluted weighted average common shares (for earnings per share computations)
 
93,691

 
95,455

 
94,522

 
95,345

Exchangeable operating partnership units
 
5,023

 
5,053

 
5,027

 
5,053

Diluted weighted average common shares (for FFO and AFFO per share computations) (1)
 
98,714

 
100,508

 
99,549

 
100,398

(1)
Assumes the Class A common limited partnership units of the Operating Partnership held by the noncontrolling interests are exchanged for common shares of the Company. Each Class A common limited partnership unit is exchangeable for one of the Company's common shares, subject to certain limitations to preserve the Company's REIT status.
(2)
Represents cash severance and accelerated vesting of restricted shares associated with the departure of an executive officer in August 2016 and the accelerated vesting of restricted shares due to the death of a director in February 2016.
(3)
Charges in 2017 relate to the early redemption of our $300.0 million 6.125% senior notes due 2020. Charges in 2016 relate to the early repayment of the $150.0 million mortgage secured by the Deer Park property, which was scheduled to mature August 30, 2018.


21
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2017
tangeroutlet-small93015a03.jpg



Reconciliation of FFO to FAD (dollars and shares in thousands)
 
 
Three months ended
 
Year ended
 
 
December 31,
 
December 31,
 
 
2017
 
2016
 
2017
 
2016
FFO available to common shareholders
 
$
67,460

 
$
60,921

 
$
211,224

 
$
236,860

Adjusted for:
 
 
 
 
 
 
 
 
Corporate depreciation excluded above
 
582

 
626

 
2,123

 
1,712

Amortization of finance costs
 
623

 
887

 
4,027

 
3,237

Amortization of net debt discount (premium)
 
99

 
130

 
1,181

 
1,290

Amortization of equity-based compensation
 
3,471

 
3,504

 
13,585

 
15,319

Straight line rent adjustment
 
(883
)
 
(1,910
)
 
(5,632
)
 
(7,002
)
Market rent adjustment
 
722

 
1,215

 
2,829

 
3,302

2nd generation tenant allowances
 
(6,117
)
 
(4,345
)
 
(20,905
)
 
(11,307
)
Capital improvements
 
(9,113
)
 
(7,300
)
 
(40,020
)
 
(30,024
)
Adjustments from unconsolidated joint ventures
 
(1,028
)
 
(621
)
 
(2,440
)
 
(2,202
)
FAD available to common shareholders (1)
 
$
55,816

 
$
53,107

 
$
165,972

 
$
211,185

Dividends per share
 
$
0.3425

 
$
0.3250

 
$
1.3525

 
$
1.2600

FFO payout ratio
 
50
%
 
53
%
 
64
%
 
53
%
FAD payout ratio
 
60
%
 
61
%
 
81
%
 
60
%
Diluted weighted average common shares (1)
 
98,714

 
100,508

 
99,549

 
100,398

(1)
Assumes the Class A common limited partnership units of the Operating Partnership held by the noncontrolling interests are exchanged for common shares of the Company. Each Class A common limited partnership unit is exchangeable for one of the Company's common shares, subject to certain limitations to preserve the Company's REIT status.




22
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2017
tangeroutlet-small93015a03.jpg


Reconciliation of Net Income to Portfolio NOI and Same Center NOI for the consolidated portfolio (in thousands)
 
 
Three months ended
 
Year ended
 
 
December 31,
 
December 31,
 
 
2017
 
2016
 
2017
 
2016
Net income
 
$
33,449

 
$
25,636

 
$
71,876

 
$
204,329

Adjusted to exclude:
 
 
 
 
 
 
 
 
Equity in earnings of unconsolidated joint ventures
 
(3,138
)
 
(3,192
)
 
(1,937
)
 
(10,872
)
Interest expense
 
15,329

 
16,469

 
64,825

 
60,669

Gain on sale of assets
 
—

 
—

 
(6,943
)
 
(6,305
)
Gain on previously held interest in acquired joint venture
 
—

 
—

 
—

 
(95,516
)
Loss on early extinguishment of debt
 
—

 
—

 
35,626

 
—

Other non-operating income
 
(2,041
)
 
(650
)
 
(2,724
)
 
(1,028
)
Depreciation and amortization
 
32,569

 
33,279

 
127,744

 
115,357

Other non-property expenses
 
239

 
817

 
1,232

 
382

Abandoned pre-development costs
 
—

 
—

 
528

 
—

Acquisition costs
 
—

 
—

 
—

 
487

Demolition Costs
 
—

 
—

 
—

 
441

Corporate general and administrative expenses
 
10,268

 
11,149

 
43,767

 
46,138

Non-cash adjustments (1)
 
(141
)
 
(674
)
 
(2,721
)
 
(3,613
)
Termination rents
 
(837
)
 
(107
)
 
(3,633
)
 
(3,599
)
Portfolio NOI
 
85,697

 
82,727

 
327,640

 
306,870

Non-same center NOI (2)
 
(12,807
)
 
(9,558
)
 
(42,450
)
 
(23,072
)
Same Center NOI
 
$
72,890

 
$
73,169

 
$
285,190

 
$
283,798

(1)
Non-cash items include straight-line rent, above and below market rent amortization and gains or losses on outparcel sales.
(2)
Excluded from Same Center NOI:
Outlet centers opened:
 
Outlet centers sold:
 
Outlet centers acquired:
 
Outlet center expansions:
Daytona Beach
November 2016
 
Fort Myers
January 2016
 
Glendale (Westgate)
June 2016
 
Lancaster
September 2017
Fort Worth
October 2017
 
Westbrook
May 2017
 
Savannah
August 2016
 
 
 




23
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2017
tangeroutlet-small93015a03.jpg


Non-GAAP Pro Rata Balance Sheet Information as of December 31, 2017 (in thousands)


Non-GAAP


 
Pro Rata Portion Unconsolidated Joint Ventures (1)
Assets
 
Rental property:
 
Land
$
47,843

Buildings, improvements and fixtures
252,809

Construction in progress
1,503

 
302,155

Accumulated depreciation
(46,918
)
Total rental property, net
255,237

Cash and cash equivalents
12,531

Deferred lease costs and other intangibles, net
5,492

Prepaids and other assets
7,889

Total assets
$
281,149

Liabilities and Owners' Equity
 
Liabilities
 
Mortgages payable, net
$
175,630

Accounts payable and accruals
7,340

Total liabilities
182,970

Owners' equity
98,179

Total liabilities and owners' equity
$
281,149

(1)
The carrying value of our investments in unconsolidated joint ventures as reported in our Consolidated Balance Sheet differs from our pro rata share of the net assets shown above due to adjustments to the book basis, including intercompany profits on sales of services that are capitalized by the unconsolidated joint ventures. The differences in basis totaled $4.2 million as of December 31, 2017 and are being amortized over the various useful lives of the related assets.


24
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2017
tangeroutlet-small93015a03.jpg


Non-GAAP Pro Rata Statement of Operations Information year to date December 31, 2017 (in thousands)
 
Non-GAAP Pro Rata Portion
 
Noncontrolling Interests
 
Unconsolidated Joint Ventures
Revenues:
 
 
 
Base rentals
$
1,088

 
$
28,234

Percentage rentals
53

 
2,621

Expense reimbursements
427

 
16,913

Other income
39

 
620

Total revenues
1,607

 
48,388

Expense:
 
 
 
Property operating
774

 
18,254

General and administrative
3

 
175

Depreciation and amortization
—

 
13,855

Impairment charge
719

 
9,021

Total expenses
1,496

 
41,305

Operating income
111

 
7,083

Other income (expense):
 
 
 
Interest expense
(378
)
 
(5,182
)
Other nonoperating income (expense)
2

 
36

Net income (loss)
$
(265
)
 
$
1,937



25
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2017
tangeroutlet-small93015a03.jpg


Investor Information
Tanger Outlet Centers welcomes any questions or comments from shareholders, analysts, investment managers, media and prospective investors. Please address all inquiries to our Investor Relations Department.
Tanger Factory Outlet Centers, Inc.
Investor Relations
Phone:
(336) 834-6892
Fax:
(336) 297-0931
e-mail:
tangerir@tangeroutlet.com
Mail:
Tanger Factory Outlet Centers, Inc.
 
3200 Northline Avenue
 
Suite 360
 
Greensboro, NC 27408


26
Supplemental Operating and Financial Data for the
Quarter Ended 12/31/2017
tangeroutlet-small93015a03.jpg