x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
North Carolina (Tanger Factory Outlet Centers, Inc.) | 56-1815473 |
North Carolina (Tanger Properties Limited Partnership) | 56-1822494 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
3200 Northline Avenue, Suite 360, Greensboro, NC 27408 | |
(Address of principal executive offices) | |
(336) 292-3010 | |
(Registrant's telephone number) |
Tanger Factory Outlet Centers, Inc. | Yes x No o |
Tanger Properties Limited Partnership | Yes x No o |
Tanger Factory Outlet Centers, Inc. | Yes x No o |
Tanger Properties Limited Partnership | Yes x No o |
Tanger Factory Outlet Centers, Inc. | ||||||
x Large accelerated filer | o Accelerated filer | o Non-accelerated filer | o Smaller reporting company |
Tanger Properties Limited Partnership | ||||||
o Large accelerated filer | o Accelerated filer | x Non-accelerated filer | o Smaller reporting company |
Tanger Factory Outlet Centers, Inc. | Yes o No x |
Tanger Properties Limited Partnership | Yes o No x |
• | enhancing investors' understanding of the Company and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business; |
• | eliminating duplicative disclosure and providing a more streamlined and readable presentation since a substantial portion of the disclosure applies to both the Company and the Operating Partnership; and |
• | creating time and cost efficiencies through the preparation of one combined report instead of two separate reports. |
• | Consolidated financial statements; |
• | The following notes to the consolidated financial statements: |
• | Debt; |
• | Share-Based Compensation of the Company and Equity-Based Compensation of the Operating Partnership; |
• | Earnings Per Share and Earnings Per Unit and |
• | Liquidity and Capital Resources in the Management's Discussion and Analysis of Financial Condition and Results of Operations. |
Page Number | |
Part I. Financial Information | |
Item 1. | |
FINANCIAL STATEMENTS OF TANGER FACTORY OUTLET CENTERS, INC. (Unaudited) | |
Consolidated Balance Sheets - as of June 30, 2012 and December 31, 2011 | |
Consolidated Statements of Operations - for the three and six months ended June 30, 2012 and 2011 | |
Consolidated Statements of Comprehensive Income - for the three and six months ended June 30, 2012 and 2011 | |
Consolidated Statements of Equity - for the six months ended June 30, 2012 and 2011 | |
Consolidated Statements of Cash Flows - for the six months ended June 30, 2012 and 2011 | |
FINANCIAL STATEMENTS OF TANGER PROPERTIES LIMITED PARTNERSHIP (Unaudited) | |
Consolidated Balance Sheets - as of June 30, 2012 and December 31, 2011 | |
Consolidated Statements of Operations - for the three and six months ended June 30, 2012 and 2011 | |
Consolidated Statements of Comprehensive Income - for the three and six months ended June 30, 2012 and 2011 | |
Consolidated Statements of Equity - for the six months ended June 30, 2012 and 2011 | |
Consolidated Statements of Cash Flows - for the six months ended June 30, 2012 and 2011 | |
Notes to Consolidated Financial Statements of Tanger Factory Outlet Centers, Inc. and Tanger Properties Limited Partnership | |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3. Quantitative and Qualitative Disclosures about Market Risk | |
Item 4. Controls and Procedures (Tanger Factory Outlet Centers, Inc. and Tanger Properties Limited Partnership) | |
Part II. Other Information | |
Item 1. Legal Proceedings | |
Item 1A. Risk Factors | |
Item 6. Exhibits | |
Signatures |
June 30, 2012 | December 31, 2011 | |||||||
ASSETS | ||||||||
Rental property | ||||||||
Land | $ | 148,002 | $ | 148,002 | ||||
Buildings, improvements and fixtures | 1,787,050 | 1,764,494 | ||||||
Construction in progress | — | 3,549 | ||||||
1,935,052 | 1,916,045 | |||||||
Accumulated depreciation | (547,167 | ) | (512,485 | ) | ||||
Total rental property, net | 1,387,885 | 1,403,560 | ||||||
Cash and cash equivalents | 11,855 | 7,894 | ||||||
Investments in unconsolidated joint ventures, net | 72,394 | 28,481 | ||||||
Deferred lease costs and other intangibles, net | 109,850 | 120,636 | ||||||
Deferred debt origination costs, net | 10,219 | 8,861 | ||||||
Prepaids and other assets | 50,172 | 52,383 | ||||||
Total assets | $ | 1,642,375 | $ | 1,621,815 | ||||
LIABILITIES AND EQUITY | ||||||||
Liabilities | ||||||||
Debt | ||||||||
Senior, unsecured notes (net of discount of $2,104 and $2,237, respectively) | $ | 547,896 | $ | 547,763 | ||||
Unsecured term loans (net of discount of $620 and $692, respectively) | 259,380 | 9,308 | ||||||
Mortgages payable (including premiums of $6,902 and $7,434, respectively) | 109,583 | 111,379 | ||||||
Unsecured lines of credit | 141,224 | 357,092 | ||||||
Total debt | 1,058,083 | 1,025,542 | ||||||
Construction trade payables | 14,746 | 13,656 | ||||||
Accounts payable and accrued expenses | 38,011 | 37,757 | ||||||
Other liabilities | 16,283 | 16,428 | ||||||
Total liabilities | 1,127,123 | 1,093,383 | ||||||
Commitments and contingencies | ||||||||
Equity | ||||||||
Tanger Factory Outlet Centers, Inc. | ||||||||
Common shares, $.01 par value, 300,000,000 shares authorized, 93,483,988 and 86,727,656 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively | 935 | 867 | ||||||
Paid in capital | 758,381 | 720,073 | ||||||
Accumulated distributions in excess of net income | (279,657 | ) | (261,913 | ) | ||||
Accumulated other comprehensive income | 1,405 | 1,535 | ||||||
Equity attributable to Tanger Factory Outlet Centers, Inc. | 481,064 | 460,562 | ||||||
Equity attributable to noncontrolling interests | ||||||||
Noncontrolling interests in Operating Partnership | 27,386 | 61,027 | ||||||
Noncontrolling interests in other consolidated partnerships | 6,802 | 6,843 | ||||||
Total equity | 515,252 | 528,432 | ||||||
Total liabilities and equity | $ | 1,642,375 | $ | 1,621,815 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Revenues | ||||||||||||||||
Base rentals | $ | 58,583 | $ | 48,393 | $ | 115,802 | $ | 94,612 | ||||||||
Percentage rentals | 1,618 | 1,137 | 3,362 | 2,528 | ||||||||||||
Expense reimbursements | 24,989 | 20,616 | 48,465 | 41,821 | ||||||||||||
Other income | 2,145 | 1,955 | 3,949 | 3,879 | ||||||||||||
Total revenues | 87,335 | 72,101 | 171,578 | 142,840 | ||||||||||||
Expenses | ||||||||||||||||
Property operating | 27,977 | 23,765 | 54,065 | 47,873 | ||||||||||||
General and administrative | 8,699 | 7,185 | 18,719 | 13,952 | ||||||||||||
Acquisition costs | — | 974 | — | 1,541 | ||||||||||||
Abandoned development costs | — | — | — | 158 | ||||||||||||
Depreciation and amortization | 24,923 | 17,858 | 50,438 | 35,823 | ||||||||||||
Total expenses | 61,599 | 49,782 | 123,222 | 99,347 | ||||||||||||
Operating income | 25,736 | 22,319 | 48,356 | 43,493 | ||||||||||||
Interest expense | 12,411 | 10,713 | 24,745 | 21,038 | ||||||||||||
Income before equity in losses of unconsolidated joint ventures | 13,325 | 11,606 | 23,611 | 22,455 | ||||||||||||
Equity in losses of unconsolidated joint ventures | (867 | ) | (764 | ) | (2,319 | ) | (796 | ) | ||||||||
Net income | 12,458 | 10,842 | 21,292 | 21,659 | ||||||||||||
Noncontrolling interests in Operating Partnership | (766 | ) | (1,420 | ) | (1,479 | ) | (2,839 | ) | ||||||||
Noncontrolling interests in other consolidated partnerships | 25 | — | 32 | — | ||||||||||||
Net income attributable to Tanger Factory Outlet Centers, Inc. | $ | 11,717 | $ | 9,422 | $ | 19,845 | $ | 18,820 | ||||||||
Basic earnings per common share: | ||||||||||||||||
Net income | $ | 0.13 | $ | 0.11 | $ | 0.21 | $ | 0.23 | ||||||||
Diluted earnings per common share: | ||||||||||||||||
Net income | $ | 0.12 | $ | 0.11 | $ | 0.21 | $ | 0.23 | ||||||||
Dividends paid per common share | $ | 0.2100 | $ | 0.2000 | $ | 0.4100 | $ | 0.3938 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Net income | $ | 12,458 | $ | 10,842 | $ | 21,292 | $ | 21,659 | ||||||||
Other comprehensive loss | ||||||||||||||||
Reclassification adjustment for amortization of gain on settlement of US treasury rate lock included in net income | (87 | ) | (82 | ) | (173 | ) | (163 | ) | ||||||||
Foreign currency translation adjustments | 39 | — | 34 | — | ||||||||||||
Changes in fair value of our portion of our unconsolidated joint ventures' cash flow hedges | — | — | — | 46 | ||||||||||||
Other comprehensive loss | (48 | ) | (82 | ) | (139 | ) | (117 | ) | ||||||||
Comprehensive income | 12,410 | 10,760 | 21,153 | 21,542 | ||||||||||||
Comprehensive income attributable to noncontrolling interests | (738 | ) | (1,409 | ) | (1,438 | ) | (2,823 | ) | ||||||||
Comprehensive income attributable to Tanger Factory Outlet Centers, Inc. | $ | 11,672 | $ | 9,351 | $ | 19,715 | $ | 18,719 |
Common shares | Paid in capital | Accumulated distributions in excess of earnings | Accumulated other comprehensive income | Total Tanger Factory Outlet Centers, Inc. equity | Noncontrolling interests in Operating Partnership | Noncontrolling interests in other consolidated partnerships | Total equity | ||||||||||||||||||
Balance, December 31, 2011 | $ | 867 | $ | 720,073 | $ | (261,913 | ) | $ | 1,535 | $ | 460,562 | $ | 61,027 | $ | 6,843 | $ | 528,432 | ||||||||
Net income | — | — | 19,845 | — | 19,845 | 1,479 | (32 | ) | 21,292 | ||||||||||||||||
Other comprehensive loss | — | — | — | (130 | ) | (130 | ) | (9 | ) | — | (139 | ) | |||||||||||||
Compensation under Incentive Award Plan | — | 5,797 | — | — | 5,797 | — | — | 5,797 | |||||||||||||||||
Issuance of 20,200 common shares upon exercise of options | — | 241 | — | — | 241 | — | — | 241 | |||||||||||||||||
Grant of 566,000 restricted shares, net of forfeitures | 6 | (6 | ) | — | — | — | — | — | — | ||||||||||||||||
Adjustment for noncontrolling interests in Operating Partnership | — | 32,329 | — | — | 32,329 | (32,329 | ) | — | — | ||||||||||||||||
Adjustment for noncontrolling interests in other consolidated partnerships | — | 9 | — | — | 9 | — | (9 | ) | — | ||||||||||||||||
Exchange of 1,542,533 Operating Partnership units for 6,170,132 common shares | 62 | (62 | ) | — | — | — | — | — | — | ||||||||||||||||
Common dividends ($.41 per share) | — | — | (37,589 | ) | — | (37,589 | ) | — | — | (37,589 | ) | ||||||||||||||
Distributions to noncontrolling interests in Operating Partnership | — | — | — | — | — | (2,782 | ) | — | (2,782 | ) | |||||||||||||||
Balance, June 30, 2012 | $ | 935 | $ | 758,381 | $ | (279,657 | ) | $ | 1,405 | $ | 481,064 | $ | 27,386 | $ | 6,802 | $ | 515,252 |
Common shares | Paid in capital | Accumulated distributions in excess of earnings | Accumulated other comprehensive income | Total Tanger Factory Outlet Centers, Inc. equity | Noncontrolling interests in Operating Partnership | Total equity | ||||||||||||||||
Balance, December 31, 2010 | $ | 810 | $ | 604,359 | $ | (240,024 | ) | $ | 1,784 | $ | 366,929 | $ | 54,966 | $ | 421,895 | |||||||
Net income | — | — | 18,820 | — | 18,820 | 2,839 | 21,659 | |||||||||||||||
Other comprehensive loss | — | — | — | (101 | ) | (101 | ) | (16 | ) | (117 | ) | |||||||||||
Compensation under Incentive Award Plan | — | 3,618 | — | — | 3,618 | — | 3,618 | |||||||||||||||
Grant of 312,400 restricted shares, net of forfeitures | 3 | (3 | ) | — | — | — | — | — | ||||||||||||||
Issuance of 4,500 common shares upon exercise of options | — | 43 | — | — | 43 | — | 43 | |||||||||||||||
Adjustment for noncontrolling interests in Operating Partnership | — | (261 | ) | — | — | (261 | ) | 261 | — | |||||||||||||
Common dividends ($.3938 per share) | — | — | (32,009 | ) | — | (32,009 | ) | — | (32,009 | ) | ||||||||||||
Distributions to noncontrolling interests in Operating Partnership | — | — | — | — | — | (4,776 | ) | (4,776 | ) | |||||||||||||
Balance, June 30, 2011 | $ | 813 | $ | 607,756 | $ | (253,213 | ) | $ | 1,683 | $ | 357,039 | $ | 53,274 | $ | 410,313 |
Six Months Ended June 30, | |||||||||
2012 | 2011 | ||||||||
OPERATING ACTIVITIES | |||||||||
Net income | $ | 21,292 | $ | 21,659 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Depreciation and amortization | 50,438 | 35,823 | |||||||
Amortization of deferred financing costs | 1,146 | 948 | |||||||
Equity in losses of unconsolidated joint ventures | 2,319 | 796 | |||||||
Share-based compensation expense | 5,797 | 3,618 | |||||||
Amortization of debt (premiums) and discounts, net | (499 | ) | 45 | ||||||
Distributions of cumulative earnings from unconsolidated joint ventures | 466 | 156 | |||||||
Net accretion of market rent rate adjustments | (430 | ) | (357 | ) | |||||
Straight-line rent adjustments | (1,789 | ) | (2,033 | ) | |||||
Changes in other assets and liabilities: | |||||||||
Other assets | 3,956 | 4,295 | |||||||
Accounts payable and accrued expenses | 113 | (5,081 | ) | ||||||
Net cash provided by operating activities | 82,809 | 59,869 | |||||||
INVESTING ACTIVITIES | |||||||||
Additions to rental property | (19,945 | ) | (30,031 | ) | |||||
Acquisition of rental property | — | (134,000 | ) | ||||||
Additions to investments in unconsolidated joint ventures | (46,893 | ) | — | — | |||||
Distributions in excess of cumulative earnings from unconsolidated joint ventures | 310 | 444 | |||||||
Increases in escrow deposits | — | (13,089 | ) | ||||||
Net proceeds from sale of real estate | — | 724 | |||||||
Additions to deferred lease costs | (2,531 | ) | (6,166 | ) | |||||
Net cash used in investing activities | (69,059 | ) | (182,118 | ) | |||||
FINANCING ACTIVITIES | |||||||||
Cash dividends paid | (37,589 | ) | (32,009 | ) | |||||
Distributions to noncontrolling interests in Operating Partnership | (2,782 | ) | (4,776 | ) | |||||
Proceeds from debt issuances | 432,732 | 306,850 | |||||||
Repayments of debt | (399,864 | ) | (135,030 | ) | |||||
Additions to deferred financing costs | (2,527 | ) | (149 | ) | |||||
Proceeds from exercise of options | 241 | 43 | |||||||
Net cash (used in) provided by financing activities | (9,789 | ) | 134,929 | ||||||
Net increase in cash and cash equivalents | 3,961 | 12,680 | |||||||
Cash and cash equivalents, beginning of period | 7,894 | 5,758 | |||||||
Cash and cash equivalents, end of period | $ | 11,855 | $ | 18,438 |
June 30, 2012 | December 31, 2011 | |||||||
ASSETS | ||||||||
Rental property | ||||||||
Land | $ | 148,002 | $ | 148,002 | ||||
Buildings, improvements and fixtures | 1,787,050 | 1,764,494 | ||||||
Construction in progress | — | 3,549 | ||||||
1,935,052 | 1,916,045 | |||||||
Accumulated depreciation | (547,167 | ) | (512,485 | ) | ||||
Total rental property, net | 1,387,885 | 1,403,560 | ||||||
Cash and cash equivalents | 11,723 | 7,866 | ||||||
Investments in unconsolidated joint ventures, net | 72,394 | 28,481 | ||||||
Deferred lease costs and other intangibles, net | 109,850 | 120,636 | ||||||
Deferred debt origination costs, net | 10,219 | 8,861 | ||||||
Prepaids and other assets | 49,950 | 52,059 | ||||||
Total assets | $ | 1,642,021 | $ | 1,621,463 | ||||
LIABILITIES AND EQUITY | ||||||||
Liabilities | ||||||||
Debt | ||||||||
Senior, unsecured notes (net of discount of $2,104 and $2,237, respectively) | $ | 547,896 | $ | 547,763 | ||||
Unsecured term loans (net of discount of $620 and $692, respectively) | 259,380 | 9,308 | ||||||
Mortgages payable (including premiums of $6,902 and $7,434, respectively) | 109,583 | 111,379 | ||||||
Unsecured lines of credit | 141,224 | 357,092 | ||||||
Total debt | 1,058,083 | 1,025,542 | ||||||
Construction trade payables | 14,746 | 13,656 | ||||||
Accounts payable and accrued expenses | 37,657 | 37,405 | ||||||
Other liabilities | 16,283 | 16,428 | ||||||
Total liabilities | 1,126,769 | 1,093,031 | ||||||
Commitments and contingencies | ||||||||
Equity | ||||||||
Partners' Equity | ||||||||
General partner | 4,781 | 4,972 | ||||||
Limited partners | 502,345 | 515,154 | ||||||
Accumulated other comprehensive income | 1,324 | 1,463 | ||||||
Total partners' equity | 508,450 | 521,589 | ||||||
Noncontrolling interests in consolidated partnerships | 6,802 | 6,843 | ||||||
Total equity | 515,252 | 528,432 | ||||||
Total liabilities and equity | $ | 1,642,021 | $ | 1,621,463 |
Three months ended, June 30, | Six months ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Revenues | ||||||||||||||||
Base rentals | $ | 58,583 | $ | 48,393 | $ | 115,802 | $ | 94,612 | ||||||||
Percentage rentals | 1,618 | 1,137 | 3,362 | 2,528 | ||||||||||||
Expense reimbursements | 24,989 | 20,616 | 48,465 | 41,821 | ||||||||||||
Other income | 2,145 | 1,955 | 3,949 | 3,879 | ||||||||||||
Total revenues | 87,335 | 72,101 | 171,578 | 142,840 | ||||||||||||
Expenses | ||||||||||||||||
Property operating | 27,977 | 23,765 | 54,065 | 47,873 | ||||||||||||
General and administrative | 8,699 | 7,185 | 18,719 | 13,952 | ||||||||||||
Acquisition costs | — | 974 | — | 1,541 | ||||||||||||
Abandoned development costs | — | — | — | 158 | ||||||||||||
Depreciation and amortization | 24,923 | 17,858 | 50,438 | 35,823 | ||||||||||||
Total expenses | 61,599 | 49,782 | 123,222 | 99,347 | ||||||||||||
Operating income | 25,736 | 22,319 | 48,356 | 43,493 | ||||||||||||
Interest expense | 12,411 | 10,713 | 24,745 | 21,038 | ||||||||||||
Income before equity in losses of unconsolidated joint ventures | 13,325 | 11,606 | 23,611 | 22,455 | ||||||||||||
Equity in losses of unconsolidated joint ventures | (867 | ) | (764 | ) | (2,319 | ) | (796 | ) | ||||||||
Net income | 12,458 | 10,842 | 21,292 | 21,659 | ||||||||||||
Noncontrolling interests in consolidated partnerships | 25 | — | 32 | — | ||||||||||||
Net income available to partners | 12,483 | 10,842 | 21,324 | 21,659 | ||||||||||||
Net income available to limited partners | 12,355 | 10,731 | 21,105 | 21,437 | ||||||||||||
Net income available to general partner | $ | 128 | $ | 111 | $ | 219 | $ | 222 | ||||||||
Basic earnings per common unit: | ||||||||||||||||
Net income | $ | 0.50 | $ | 0.46 | $ | 0.86 | $ | 0.92 | ||||||||
Diluted earnings per common unit: | ||||||||||||||||
Net income | $ | 0.50 | $ | 0.46 | $ | 0.85 | $ | 0.91 | ||||||||
Distribution paid per common unit | 0.8400 | 0.8000 | 1.6400 | 1.5752 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Net income | $ | 12,458 | $ | 10,842 | $ | 21,292 | $ | 21,659 | ||||||||
Other comprehensive loss | ||||||||||||||||
Reclassification adjustment for amortization of gain on settlement of US treasury rate lock included in net income | (87 | ) | (82 | ) | (173 | ) | (163 | ) | ||||||||
Foreign currency translation adjustments | 39 | — | 34 | — | ||||||||||||
Changes in fair value of our portion of our unconsolidated joint ventures' cash flow hedges | — | — | — | 46 | ||||||||||||
Other comprehensive loss | (48 | ) | (82 | ) | (139 | ) | (117 | ) | ||||||||
Comprehensive income | 12,410 | 10,760 | 21,153 | 21,542 | ||||||||||||
Comprehensive income attributable to noncontrolling interests in consolidated partnerships | 25 | — | 32 | — | ||||||||||||
Comprehensive income attributable to the Operating Partnership | $ | 12,435 | $ | 10,760 | $ | 21,185 | $ | 21,542 |
General partner | Limited partners | Accumulated other comprehensive income | Total partners' equity | Noncontrolling interests in consolidated partnerships | Total equity | ||||||||||||||
Balance, December 31, 2011 | $ | 4,972 | $ | 515,154 | $ | 1,463 | $ | 521,589 | $ | 6,843 | $ | 528,432 | |||||||
Net income | 219 | 21,105 | — | 21,324 | (32 | ) | 21,292 | ||||||||||||
Other comprehensive loss | — | — | (139 | ) | (139 | ) | — | (139 | ) | ||||||||||
Compensation under Incentive Award Plan | — | 5,797 | — | 5,797 | — | 5,797 | |||||||||||||
Issuance of 5,050 common units upon exercise of options | — | 241 | — | 241 | — | 241 | |||||||||||||
Adjustments for noncontrolling interests in consolidated partnerships | — | 9 | — | 9 | (9 | ) | — | ||||||||||||
Common distributions ($1.64 per unit) | (410 | ) | (39,961 | ) | — | (40,371 | ) | — | (40,371 | ) | |||||||||
Balance, June 30, 2012 | $ | 4,781 | $ | 502,345 | $ | 1,324 | $ | 508,450 | $ | 6,802 | $ | 515,252 | |||||||
General partner | Limited partners | Accumulated other comprehensive income | Total equity | ||||||||||
Balance, December 31, 2010 | $ | 5,221 | $ | 414,926 | $ | 1,748 | $ | 421,895 | |||||
Net income | 222 | 21,437 | — | 21,659 | |||||||||
Other comprehensive loss | — | — | (117 | ) | (117 | ) | |||||||
Compensation under Incentive Award Plan | — | 3,618 | — | 3,618 | |||||||||
Issuance of 1,125 common units upon exercise of options | — | 43 | — | 43 | |||||||||
Common distributions ($1.575 per unit) | (373 | ) | (36,412 | ) | — | (36,785 | ) | ||||||
Balance, June 30, 2011 | 5,070 | 403,612 | 1,631 | 410,313 |
Six Months Ended June 30, | ||||||||
2012 | 2011 | |||||||
OPERATING ACTIVITIES | ||||||||
Net income | $ | 21,292 | $ | 21,659 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 50,438 | 35,823 | ||||||
Amortization of deferred financing costs | 1,146 | 948 | ||||||
Equity in losses of unconsolidated joint ventures | 2,319 | 796 | ||||||
Equity-based compensation expense | 5,797 | 3,618 | ||||||
Amortization of debt (premiums) and discounts, net | (499 | ) | 45 | |||||
Distributions of cumulative earnings from unconsolidated joint ventures | 466 | 156 | ||||||
Net accretion of market rent rate adjustments | (430 | ) | (357 | ) | ||||
Straight-line rent adjustments | (1,789 | ) | (2,033 | ) | ||||
Changes in other assets and liabilities: | ||||||||
Other assets | 3,854 | 4,256 | ||||||
Accounts payable and accrued expenses | 111 | (5,027 | ) | |||||
Net cash provided by operating activities | 82,705 | 59,884 | ||||||
INVESTING ACTIVITIES | ||||||||
Additions to rental property | (19,945 | ) | (30,031 | ) | ||||
Acquisition of rental property | — | (134,000 | ) | |||||
Additions to investments in unconsolidated joint ventures | (46,893 | ) | — | |||||
Distributions in excess of cumulative earnings from unconsolidated joint ventures | 310 | 444 | ||||||
Increase in escrow deposits | — | (13,089 | ) | |||||
Net proceeds from the sale of real estate | — | 724 | ||||||
Additions to deferred lease costs | (2,531 | ) | (6,166 | ) | ||||
Net cash used in investing activities | (69,059 | ) | (182,118 | ) | ||||
FINANCING ACTIVITIES | ||||||||
Cash distributions paid | (40,371 | ) | (36,785 | ) | ||||
Proceeds from debt issuances | 432,732 | 306,850 | ||||||
Repayments of debt | (399,864 | ) | (135,030 | ) | ||||
Additions to deferred financing costs | (2,527 | ) | (149 | ) | ||||
Proceeds from exercise of options | 241 | 43 | ||||||
Net cash (used in) provided by financing activities | (9,789 | ) | 134,929 | |||||
Net increase in cash and cash equivalents | 3,857 | 12,695 | ||||||
Cash and cash equivalents, beginning of period | 7,866 | 5,671 | ||||||
Cash and cash equivalents, end of period | $ | 11,723 | $ | 18,366 |
Joint Venture | Center Location | Ownership % | Square Feet | Carrying Value of Investment (in millions) | Total Joint Venture Debt (in millions) | |||||||||||
Deer Park | Deer Park, Long Island NY | 33.3 | % | 741,976 | $ | 4.1 | $ | 246.9 | ||||||||
Deer Park Warehouse | Deer Park, Long Island NY | 33.3 | % | 29,253 | — | 1.8 | ||||||||||
Galveston/Houston | Texas City, Texas | 50.0 | % | — | 21.0 | — | ||||||||||
National Harbor | Washington D.C. Metro Area | 50.0 | % | — | 0.9 | — | ||||||||||
RioCan Canada | Various | 50.0 | % | 155,522 | 24.0 | — | ||||||||||
Westgate | Phoenix, Arizona | 58.0 | % | — | 18.3 | — | ||||||||||
Wisconsin Dells | Wisconsin Dells, Wisconsin | 50.0 | % | 265,086 | 3.9 | 24.3 | ||||||||||
Other | 50.0 | % | — | 0.2 | — | |||||||||||
Total | $ | 72.4 | $ | 273.0 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Fee: | ||||||||||||||||
Management and leasing | $ | 474 | $ | 469 | $ | 953 | $ | 973 | ||||||||
Marketing | 47 | 44 | 100 | 88 | ||||||||||||
Total Fees | $ | 521 | $ | 513 | $ | 1,053 | $ | 1,061 |
a. | The power to direct the activities of the VIE that most significantly impact the entity's economic performance |
b. | The obligation to absorb losses of the entity that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE |
Summary Balance Sheets - Unconsolidated Joint Ventures | As of June 30, 2012 | As of December 31, 2011 | ||||||
Assets | ||||||||
Investment properties at cost, net | $ | 338,144 | $ | 332,822 | ||||
Construction in progress | 66,263 | 11,276 | ||||||
Assets held for sale (1) | 1,800 | — | ||||||
Cash and cash equivalents | 16,855 | 7,582 | ||||||
Deferred lease costs, net | 13,514 | 14,815 | ||||||
Deferred debt origination costs, net | 6,566 | 7,566 | ||||||
Prepaids and other assets | 16,386 | 11,687 | ||||||
Total assets | $ | 459,528 | $ | 385,748 | ||||
Liabilities and Owners' Equity | ||||||||
Mortgages payable | $ | 273,034 | $ | 303,230 | ||||
Construction trade payables | 23,135 | 2,669 | ||||||
Accounts payable and other liabilities | 25,641 | 27,246 | ||||||
Total liabilities | 321,810 | 333,145 | ||||||
Owners' equity | 137,718 | 52,603 | ||||||
Total liabilities and owners' equity | $ | 459,528 | $ | 385,748 |
Three Months Ended | Six Months Ended | |||||||||||||||
Summary Statements of Operations | June 30, | June 30, | ||||||||||||||
- Unconsolidated Joint Ventures | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Revenues | $ | 11,606 | $ | 9,752 | $ | 23,264 | $ | 19,314 | ||||||||
Expenses | ||||||||||||||||
Property operating | 5,083 | 4,473 | 9,974 | 8,574 | ||||||||||||
General and administrative | 237 | (131 | ) | 400 | 56 | |||||||||||
Acquisition costs | — | — | 704 | — | ||||||||||||
Abandoned development costs | 436 | — | 1,310 | — | ||||||||||||
Impairment charge | 420 | — | 420 | — | ||||||||||||
Depreciation and amortization | 4,300 | 3,627 | 8,908 | 7,238 | ||||||||||||
Total expenses | 10,476 | 7,969 | 21,716 | 15,868 | ||||||||||||
Operating income | 1,130 | 1,783 | 1,548 | 3,446 | ||||||||||||
Interest expense | 3,598 | 4,126 | 7,427 | 5,929 | ||||||||||||
Net loss | $ | (2,468 | ) | $ | (2,343 | ) | $ | (5,879 | ) | $ | (2,483 | ) | ||||
The Company and Operating Partnership's share of: | ||||||||||||||||
Net loss | $ | (867 | ) | $ | (764 | ) | $ | (2,319 | ) | $ | (796 | ) | ||||
Depreciation and impairment charge (real estate related) | $ | 1,793 | $ | 1,336 | $ | 3,608 | $ | 2,642 |
As of | As of | ||||||||||||||||||||
June 30, 2012 | December 31, 2011 | ||||||||||||||||||||
Stated Interest Rate(s) | Maturity Date | Principal | Premium (Discount) | Principal | Premium (Discount) | ||||||||||||||||
Senior, unsecured notes: | |||||||||||||||||||||
Senior notes | 6.15 | % | November 2015 | $ | 250,000 | (368 | ) | $ | 250,000 | $ | (417 | ) | |||||||||
Senior notes | 6.125 | % | June 2020 | 300,000 | (1,736 | ) | 300,000 | (1,820 | ) | ||||||||||||
Mortgages payable (1): | |||||||||||||||||||||
Atlantic City | 5.14%-7.65% | November 2021- December 2026 | 53,030 | 4,697 | 53,826 | 4,894 | |||||||||||||||
Ocean City | 5.24 | % | January 2016 | 18,705 | 331 | 18,867 | 375 | ||||||||||||||
Hershey | 5.17%-8.00% | August 2015 | 30,946 | 1,874 | 31,252 | 2,165 | |||||||||||||||
Note payable (1) | 1.50 | % | June 2016 | 10,000 | (620 | ) | 10,000 | (692 | ) | ||||||||||||
Unsecured term loan (2) | LIBOR + 1.80% | February 2019 | 250,000 | — | — | — | |||||||||||||||
Unsecured lines of credit (3) | LIBOR + 1.25% | November 2015 | 141,224 | — | 357,092 | — | |||||||||||||||
$ | 1,053,905 | $ | 4,178 | $ | 1,021,037 | $ | 4,505 |
(1) | The effective interest rates assigned during the purchase price allocation to these assumed mortgages and note payable during acquisitions in 2011 were as follows: Atlantic City 5.05%, Ocean City 4.68%, Hershey 3.40% and note payable 3.15%. |
(2) | Our term loan is pre-payable without penalty beginning in February of 2015. |
(3) | We have the option to extend the lines for an additional one year to November 10, 2016. These lines require a facility fee payment of 0.25% annually based on the total amount of the commitment. The credit spread and facility fee can vary depending on our investment grade rating. |
Calendar Year | Amount | |||
2012 | $ | 1,298 | ||
2013 | 4,633 | |||
2014 | 3,599 | |||
2015 | 423,563 | |||
2016 | 30,279 | |||
Thereafter | 590,533 | |||
Subtotal | 1,053,905 | |||
Net premiums | 4,178 | |||
Total | $ | 1,058,083 |
As of | As of | |||||
June 30, 2012 | December 31, 2011 | |||||
Common units: | ||||||
General partner | 250,000 | 250,000 | ||||
Limited partners | 24,451,437 | 24,304,887 | ||||
Total common units | 24,701,437 | 24,554,887 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Net income attributable to Tanger Factory Outlet Centers, Inc. | $ | 11,717 | $ | 9,422 | $ | 19,845 | $ | 18,820 | ||||||||
Increase (decrease) in Tanger Factory Outlet Centers, Inc. paid-in-capital adjustments to noncontrolling interests (1) | 4,151 | (228 | ) | 32,329 | (261 | ) | ||||||||||
Changes from net income attributable to Tanger Factory Outlet Centers, Inc. and transfers from noncontrolling interest | $ | 15,868 | $ | 9,194 | $ | 52,174 | $ | 18,559 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Restricted common shares (1) | $ | 1,864 | $ | 1,266 | $ | 4,714 | $ | 2,533 | ||||||||
Notional unit performance awards | 490 | 507 | 979 | 1,013 | ||||||||||||
Options | 52 | 47 | 104 | 72 | ||||||||||||
Total share-based compensation | $ | 2,406 | $ | 1,820 | $ | 5,797 | $ | 3,618 |
Unvested Restricted Common Shares | Number of shares | Weighted-average grant date fair value | |||||
Unvested at December 31, 2011 | 791,337 | $ | 20.93 | ||||
Granted | 571,000 | 27.90 | |||||
Vested | (273,800 | ) | 21.44 | ||||
Forfeited | (5,000 | ) | 29.50 | ||||
Unvested at June 30, 2012 | 1,083,537 | $ | 24.43 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
Restricted units (1) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Restricted units (1) | $ | 1,864 | $ | 1,266 | $ | 4,714 | $ | 2,533 | ||||||||
Notional unit performance awards | 490 | 507 | 979 | 1,013 | ||||||||||||
Options | 52 | 47 | 104 | 72 | ||||||||||||
Total equity-based compensation | $ | 2,406 | $ | 1,820 | $ | 5,797 | $ | 3,618 |
Unvested Restricted Units | Number of units | Weighted-average grant date fair value | |||||
Unvested at December 31, 2011 | 197,834 | $ | 83.70 | ||||
Granted | 142,750 | 111.60 | |||||
Vested | (68,450 | ) | 85.75 | ||||
Forfeited | (1,250 | ) | 118.00 | ||||
Unvested at June 30, 2012 | 270,884 | $ | 93.73 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Numerator | ||||||||||||||||
Net income attributable to Tanger Factory Outlet Centers, Inc. | $ | 11,717 | $ | 9,422 | $ | 19,845 | $ | 18,820 | ||||||||
Less allocation of earnings to participating securities | (209 | ) | (165 | ) | (367 | ) | (357 | ) | ||||||||
Net income available to common shareholders of Tanger Factory Outlet Centers, Inc. | $ | 11,508 | $ | 9,257 | $ | 19,478 | $ | 18,463 | ||||||||
Denominator | ||||||||||||||||
Basic weighted average common shares | 91,717 | 80,483 | 90,694 | 80,418 | ||||||||||||
Effect of notional units | 1,014 | 416 | 1,007 | 416 | ||||||||||||
Effect of senior exchangeable notes | — | 131 | — | 131 | ||||||||||||
Effect of outstanding options | 85 | 74 | 74 | 74 | ||||||||||||
Diluted weighted average common shares | 92,816 | 81,104 | 91,775 | 81,039 | ||||||||||||
Basic earnings per common share: | ||||||||||||||||
Net income | $ | 0.13 | $ | 0.11 | $ | 0.21 | $ | 0.23 | ||||||||
Diluted earnings per common share: | ||||||||||||||||
Net income | $ | 0.12 | $ | 0.11 | $ | 0.21 | $ | 0.23 |
Three Months Ended June 30, | Six Months Ending June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Numerator | ||||||||||||||||
Net income attributable to partners of the Operating Partnership | $ | 12,483 | $ | 10,842 | $ | 21,324 | $ | 21,659 | ||||||||
Less allocation of earnings to participating securities | (209 | ) | (165 | ) | (367 | ) | (357 | ) | ||||||||
Net income available to common unitholders of the Operating Partnership | $ | 12,274 | $ | 10,677 | $ | 20,957 | $ | 21,302 | ||||||||
Denominator | ||||||||||||||||
Basic weighted average common units | 24,428 | 23,154 | 24,405 | 23,138 | ||||||||||||
Effect of notional units | 254 | 104 | 252 | 104 | ||||||||||||
Effect of senior exchangeable notes | — | 32 | — | 32 | ||||||||||||
Effect of outstanding options | 21 | 19 | 19 | 19 | ||||||||||||
Diluted weighted average common units | 24,703 | 23,309 | 24,676 | 23,293 | ||||||||||||
Basic earnings per common unit: | ||||||||||||||||
Net income | $ | 0.50 | $ | 0.46 | $ | 0.86 | $ | 0.92 | ||||||||
Diluted earnings per common unit: | ||||||||||||||||
Net income | $ | 0.50 | $ | 0.46 | $ | 0.85 | $ | 0.91 |
Tier | Description | |
Level 1 | Defined as observable inputs such as quoted prices in active markets | |
Level 2 | Defined as inputs other than quoted prices in active markets that are either directly or indirectly observable | |
Level 3 | Defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions |
Center | Date Acquired/Open | Purchase Price (in millions) | Square Feet (in thousands) | Centers | States | ||||||||||
As of January 1, 2011 | 9,190 | 31 | 21 | ||||||||||||
Redevelopments: | |||||||||||||||
Hilton Head I, SC | March 31, 2011 | 177 | 1 | — | |||||||||||
Acquisitions: | |||||||||||||||
Jeffersonville, OH | June 28, 2011 | $ | 134.0 | 410 | 1 | 1 | |||||||||
Atlantic City, NJ and Ocean City, MD (1) | July 15, 2011 | $ | 200.3 | 689 | 2 | 2 | |||||||||
Hershey, PA (2) | September 30, 2011 | $ | 49.8 | 247 | 1 | — | |||||||||
Other | 33 | — | — | ||||||||||||
As of June 30, 2012 | 10,746 | 36 | 24 |
Location | Square | % | ||||
Consolidated Properties | Feet | Occupied | ||||
Riverhead, New York (1) | 729,736 | 100 | ||||
Rehoboth Beach, Delaware (1) | 568,975 | 99 | ||||
Foley, Alabama | 557,228 | 97 | ||||
Atlantic City, New Jersey (1) | 489,762 | 97 | ||||
San Marcos, Texas | 441,929 | 100 | ||||
Myrtle Beach Hwy 501, South Carolina | 425,247 | 99 | ||||
Sevierville, Tennessee (1) | 419,038 | 99 | ||||
Jeffersonville, Ohio | 406,969 | 99 | ||||
Myrtle Beach Hwy 17, South Carolina (1) | 402,791 | 100 | ||||
Washington, Pennsylvania | 372,972 | 99 | ||||
Commerce II, Georgia | 370,512 | 100 | ||||
Charleston, South Carolina | 365,107 | 96 | ||||
Howell, Michigan | 324,632 | 94 | ||||
Locust Grove, Georgia | 321,070 | 99 | ||||
Mebane, North Carolina | 318,910 | 100 | ||||
Branson, Missouri | 302,922 | 97 | ||||
Park City, Utah | 298,379 | 100 | ||||
Westbrook, Connecticut | 289,950 | 97 | ||||
Gonzales, Louisiana | 282,403 | 100 | ||||
Williamsburg, Iowa | 277,230 | 99 | ||||
Lincoln City, Oregon | 270,212 | 97 | ||||
Lancaster, Pennsylvania | 254,002 | 100 | ||||
Tuscola, Illinois | 250,439 | 90 | ||||
Hershey, Pennsylvania | 247,448 | 100 | ||||
Tilton, New Hampshire | 245,698 | 99 | ||||
Hilton Head II, South Carolina | 206,529 | 100 | ||||
Ocean City, Maryland (1) | 199,243 | 89 | ||||
Fort Myers, Florida | 198,877 | 89 | ||||
Terrell, Texas | 177,800 | 94 | ||||
Hilton Head I, South Carolina | 177,199 | 100 | ||||
Barstow, California | 171,300 | 100 | ||||
West Branch, Michigan | 112,570 | 100 | ||||
Blowing Rock, North Carolina | 104,154 | 97 | ||||
Nags Head, North Carolina | 82,229 | 100 | ||||
Kittery I, Maine | 57,667 | 100 | ||||
Kittery II, Maine | 24,619 | 100 | ||||
Totals | 10,745,748 | 98 | ||||
Unconsolidated Joint Ventures | ||||||
Deer Park, New York (2) | 771,229 | 91 | ||||
Wisconsin Dells, Wisconsin | 265,086 | 99 | ||||
Cookstown, Ontario | 155,522 | 91 |
(1) | These properties or a portion thereof are subject to a ground lease. |
(2) | Includes a 29,253 square foot warehouse adjacent to the shopping center. |
Six months ended June 30, 2012 | |||||||||||||||
# of Leases | Square Feet | Average Annual Straight-line Rent (psf) | Average Tenant Allowance (psf) | Average Initial Term (in years) | Net Average Annual Straight-line Rent (psf) (1) | ||||||||||
Re-tenant | 92 | 319,000 | $ | 31.91 | $ | 41.64 | 8.77 | $ | 27.16 | ||||||
Renewal | 242 | 1,189,000 | $ | 21.74 | $ | — | 4.60 | $ | 21.74 | ||||||
Six months ended June 30, 2011 | |||||||||||||||
# of Leases | Square Feet | Average Annual Straight-line Rent (psf) | Average Tenant Allowance (psf) | Average Initial Term (in years) | Net Average Annual Straight-line Rent (psf) (1) | ||||||||||
Re-tenant | 132 | 469,000 | $ | 28.26 | $ | 34.86 | 8.33 | $ | 24.08 | ||||||
Renewal | 241 | 1,192,000 | $ | 20.85 | $ | 1.70 | 4.89 | $ | 20.50 |
2012 | 2011 | Change | ||||||||||
Existing property base rentals | $ | 49,413 | $ | 47,256 | $ | 2,157 | ||||||
Base rentals from new developments | 989 | 789 | 200 | |||||||||
Base rentals from acquisitions | 7,826 | 101 | 7,725 | |||||||||
Termination fees | 200 | 45 | 155 | |||||||||
Amortization of net above and below market rent adjustments | 155 | 202 | (47 | ) | ||||||||
$ | 58,583 | $ | 48,393 | $ | 10,190 |
2012 | 2011 | Change | ||||||||||
Existing property percentage rentals | $ | 1,351 | $ | 1,137 | $ | 214 | ||||||
Percentage rentals from new developments | 40 | — | 40 | |||||||||
Percentage rentals from acquisitions | 227 | — | 227 | |||||||||
$ | 1,618 | $ | 1,137 | $ | 481 |
2012 | 2011 | Change | ||||||||||
Existing property expense reimbursements | $ | 21,334 | $ | 20,345 | $ | 989 | ||||||
Expense reimbursements from new developments | 368 | 235 | 133 | |||||||||
Expense reimbursements from acquisitions | 3,143 | 17 | 3,126 | |||||||||
Termination fees allocated to expense reimbursements | 144 | 19 | 125 | |||||||||
$ | 24,989 | $ | 20,616 | $ | 4,373 |
2012 | 2011 | Change | ||||||||||
Existing property other income | $ | 2,037 | $ | 1,933 | $ | 104 | ||||||
Other income from new developments | 16 | 18 | (2 | ) | ||||||||
Other income from acquisitions | 92 | 4 | 88 | |||||||||
$ | 2,145 | $ | 1,955 | $ | 190 |
2012 | 2011 | Change | ||||||||||
Existing property operating expenses | $ | 23,480 | $ | 23,230 | $ | 250 | ||||||
Property operating expenses from new developments | 430 | 509 | (79 | ) | ||||||||
Property operating expenses from acquisitions | 4,067 | 26 | 4,041 | |||||||||
$ | 27,977 | $ | 23,765 | $ | 4,212 |
2012 | 2011 | Change | ||||||||||
Existing property depreciation and amortization | $ | 17,146 | $ | 17,533 | $ | (387 | ) | |||||
Depreciation and amortization from new developments | 520 | 325 | 195 | |||||||||
Depreciation and amortization from acquisitions | 7,257 | — | 7,257 | |||||||||
$ | 24,923 | $ | 17,858 | $ | 7,065 |
2012 | 2011 | Change | ||||||||||
Existing property base rentals | $ | 97,514 | $ | 93,170 | $ | 4,344 | ||||||
Base rentals from new developments | 1,918 | 773 | 1,145 | |||||||||
Base rentals from acquisitions | 15,677 | 101 | 15,576 | |||||||||
Termination fees | 367 | 211 | 156 | |||||||||
Amortization of net above and below market rent adjustments | 326 | 357 | (31 | ) | ||||||||
$ | 115,802 | $ | 94,612 | $ | 21,190 |
2012 | 2011 | Change | ||||||||||
Existing property percentage rentals | $ | 2,814 | $ | 2,528 | $ | 286 | ||||||
Percentage rentals from new developments | 180 | — | 180 | |||||||||
Percentage rentals from acquisitions | 368 | — | 368 | |||||||||
$ | 3,362 | $ | 2,528 | $ | 834 |
2012 | 2011 | Change | ||||||||||
Existing property expense reimbursements | $ | 41,323 | $ | 41,224 | $ | 99 | ||||||
Expense reimbursements from new developments | 772 | 467 | 305 | |||||||||
Expense reimbursements from acquisitions | 6,097 | 17 | 6,080 | |||||||||
Termination fees allocated to expense reimbursements | 273 | 113 | 160 | |||||||||
$ | 48,465 | $ | 41,821 | $ | 6,644 |
2012 | 2011 | Change | ||||||||||
Existing property operating expenses | $ | 45,521 | $ | 47,075 | $ | (1,554 | ) | |||||
Property operating expenses from new developments | 870 | 772 | 98 | |||||||||
Property operating expenses from acquisitions | 7,674 | 26 | 7,648 | |||||||||
$ | 54,065 | $ | 47,873 | $ | 6,192 |
2012 | 2011 | Change | ||||||||||
Existing property depreciation and amortization | $ | 34,408 | $ | 35,497 | $ | (1,089 | ) | |||||
Depreciation and amortization from new developments | 1,027 | 326 | 701 | |||||||||
Depreciation and amortization from acquisitions | 15,003 | — | 15,003 | |||||||||
$ | 50,438 | $ | 35,823 | $ | 14,615 |
Six months ended | ||||||||||||
June 30, | ||||||||||||
2012 | 2011 | Change | ||||||||||
Net cash provided by operating activities | $ | 82,705 | $ | 59,884 | $ | 22,821 | ||||||
Net cash used in investing activities | (69,059 | ) | (182,118 | ) | 113,059 | |||||||
Net cash (used in) provided by financing activities | (9,789 | ) | 134,929 | (144,718 | ) | |||||||
Net increase in cash and cash equivalents | $ | 3,857 | $ | 12,695 | $ | (8,838 | ) |
Six Months Ended June 30, | ||||||||||||
2012 | 2011 | Change | ||||||||||
Capital expenditures analysis: | ||||||||||||
New center developments | $ | 4,148 | $ | 1,466 | $ | 2,682 | ||||||
Center redevelopment | 259 | 9,338 | (9,079 | ) | ||||||||
Major center renovations | 4,083 | 825 | 3,258 | |||||||||
Second generation tenant allowances | 8,716 | 8,422 | 294 | |||||||||
Other capital expenditures | 3,829 | 5,483 | (1,654 | ) | ||||||||
21,035 | 25,534 | (4,499 | ) | |||||||||
Conversion from accrual to cash basis | (1,090 | ) | 4,497 | (5,587 | ) | |||||||
Additions to rental property-cash basis | $ | 19,945 | $ | 30,031 | $ | (10,086 | ) |
• | New center development expenditures, which includes first generation tenant allowances, increased in the 2012 period due to on-going expansion projects in Locust Grove, Georgia and Gonzales, Louisiana. |
• | Center redevelopment relates to our Hilton Head I, SC center which re-opened in March 2011. |
• | Major center renovations increased in the 2012 period due to our on-going renovation efforts at the centers acquired during the second and third quarters of 2011. |
Senior unsecured notes financial covenants | Required | Actual | |
Total consolidated debt to adjusted total assets | <60% | 47 | % |
Total secured debt to adjusted total assets | <40% | 5 | % |
Total unencumbered assets to unsecured debt | >135% | 204 | % |
Joint Venture | Center Location | Ownership % | Square Feet | Carrying Value of Investment (in millions) | Total Joint Venture Debt (in millions) | |||||||||||
Deer Park | Deer Park, Long Island NY | 33.3 | % | 741,796 | 4.1 | 246.9 | ||||||||||
Deer Park Warehouse | Deer Park, Long Island NY | 33.3 | % | 29,253 | — | 1.8 | ||||||||||
Galveston/Houston | Texas City, TX | 50.0 | % | — | 21.0 | — | ||||||||||
National Harbor | Washington D.C. Metro Area | 50.0 | % | — | 0.9 | — | ||||||||||
RioCan Canada | Various | 50.0 | % | 155,522 | 24.0 | — | ||||||||||
Westgate | Phoenix, Arizona | 58.0 | % | — | 18.3 | — | ||||||||||
Wisconsin Dells | Wisconsin Dells, WI | 50.0 | % | 265,086 | 3.9 | 24.3 | ||||||||||
Other | 50.0 | % | — | 0.2 | — | |||||||||||
Total | $ | 72.4 | $ | 273.0 |
Joint Venture | Our Portion of Joint Venture Debt | Maturity Date | Interest Rate | |||||
Deer Park | $ | 82,314 | May 2014 | LIBOR + 3.50% to 5.00% | ||||
Deer Park Warehouse | $ | 614 | May 2011 (1) | 8.75% | ||||
Westgate | $ | — | June 2015 | LIBOR + 1.75% | ||||
Wisconsin Dells | $ | 12,125 | December 2012 | LIBOR + 3.00% |
(1) | The Deer Park Warehouse mortgage did not qualify for the associated one-year extension option which was exercisable in May 2011. See "Deer Park Warehouse, Long Island, New York" in this section for further discussion. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Fee: | ||||||||||||||||
Management and leasing | $ | 474 | $ | 469 | $ | 953 | $ | 973 | ||||||||
Marketing | 47 | 44 | 100 | 88 | ||||||||||||
Total Fees | $ | 521 | $ | 513 | $ | 1,053 | $ | 1,061 |
• | 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. |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
FUNDS FROM OPERATIONS | ||||||||||||||||
Net income | $ | 12,458 | $ | 10,842 | $ | 21,292 | $ | 21,659 | ||||||||
Adjusted for: | ||||||||||||||||
Depreciation and amortization uniquely significant to real estate - consolidated | 24,710 | 17,686 | 50,011 | 35,493 | ||||||||||||
Depreciation and amortization uniquely significant to real estate - unconsolidated joint ventures | 1,653 | 1,336 | 3,468 | 2,642 | ||||||||||||
Impairment charge - unconsolidated joint ventures | 140 | — | 140 | — | ||||||||||||
Funds from operations (FFO) | 38,961 | 29,864 | 74,911 | 59,794 | ||||||||||||
FFO attributable to noncontrolling interests in other consolidated partnerships | 16 | — | 14 | — | ||||||||||||
Allocation of FFO to participating securities | (391 | ) | (264 | ) | (698 | ) | (572 | ) | ||||||||
Funds from operations available to common shareholders and noncontrolling interests in Operating Partnership | $ | 38,586 | $ | 29,600 | $ | 74,227 | $ | 59,222 | ||||||||
Tanger Factory Outlet Centers, Inc.: | ||||||||||||||||
Weighted average common shares outstanding (1) (2) | 98,812 | 93,237 | 98,702 | 93,172 | ||||||||||||
Funds from operations per share | $ | 0.39 | $ | 0.32 | $ | 0.75 | $ | 0.64 | ||||||||
Tanger Properties Limited Partnership: | ||||||||||||||||
Weighted average Operating Partnership units outstanding (1) | 24,703 | 23,309 | 24,676 | 23,293 | ||||||||||||
Funds from operations per unit | $ | 1.56 | $ | 1.27 | $ | 3.01 | $ | 2.54 |
(1) | Includes the dilutive effect of options and senior exchangeable notes. |
(2) | Assumes the partnership units of the Operating Partnership held by the noncontrolling interests are exchanged for common shares of the Company. Each unit held by the Family Limited Partners is exchangeable for four of the Company's common shares, subject to certain limitations to preserve the Company's REIT status. |
• | AFFO does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual |
• | 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. |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
ADJUSTED FUNDS FROM OPERATIONS | ||||||||||||||||
Funds from operations | $ | 38,961 | $ | 29,864 | $ | 74,911 | $ | 59,794 | ||||||||
Adjusted for non-core items: | ||||||||||||||||
Acquisition costs | — | 974 | — | 1,541 | ||||||||||||
Abandoned development costs | — | — | — | 158 | ||||||||||||
AFFO adjustments from unconsolidated joint ventures (1) | 206 | — | 892 | — | ||||||||||||
Adjusted funds from operations (AFFO) | 39,167 | 30,838 | 75,803 | 61,493 | ||||||||||||
FFO attributable to noncontrolling interests in other consolidated partnerships | 16 | — | 14 | — | ||||||||||||
Allocation of AFFO to participating securities | (393 | ) | (272 | ) | (707 | ) | (588 | ) | ||||||||
Adjusted funds from operations available to common shareholders and noncontrolling interests in Operating Partnership | $ | 38,790 | $ | 30,566 | $ | 75,110 | $ | 60,905 | ||||||||
Tanger Factory Outlet Centers, Inc.: | ||||||||||||||||
Weighted average common shares outstanding (2) (3) | 98,812 | 93,237 | 98,702 | 93,172 | ||||||||||||
Adjusted funds from operations per share | $ | 0.39 | $ | 0.33 | $ | 0.76 | $ | 0.65 | ||||||||
Tanger Properties Limited Partnership: | ||||||||||||||||
Weighted average Operating Partnership units outstanding (2) | 24,703 | 23,309 | 24,676 | 23,293 | ||||||||||||
Adjusted funds from operations per unit | $ | 1.57 | $ | 1.31 | $ | 3.04 | $ | 2.61 |
(1) | Includes our share of acquisition costs, abandoned development costs and gain on early extinguishment of debt. |
(2) | Includes the dilutive effect of options and senior exchangeable notes. |
(3) | Assumes the partnership units of the Operating Partnership held by the noncontrolling interest are exchanged for common shares of the Company. Each unit held by the Family Limited Partners is exchangeable for four of the Company's common shares, subject to certain limitations to preserve the Company's REIT status. |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
SAME CENTER NET OPERATING INCOME | ||||||||||||||||
Income before equity in losses of unconsolidated joint ventures | $ | 13,325 | $ | 11,606 | $ | 23,611 | $ | 22,455 | ||||||||
Interest expense | 12,411 | 10,713 | 24,745 | 21,038 | ||||||||||||
Operating income | 25,736 | 22,319 | 48,356 | 43,493 | ||||||||||||
Adjusted to exclude: | ||||||||||||||||
Depreciation and amortization | 24,923 | 17,858 | 50,438 | 35,823 | ||||||||||||
Abandoned development costs | — | — | — | 158 | ||||||||||||
Acquisition costs | — | 974 | — | 1,541 | ||||||||||||
General and administrative expenses | 8,699 | 7,185 | 18,719 | 13,952 | ||||||||||||
Property net operating income | 59,358 | 48,336 | 117,513 | 94,967 | ||||||||||||
Less: non-cash adjustments and termination rents (1) | (1,790 | ) | (1,540 | ) | (3,714 | ) | (2,785 | ) | ||||||||
Property net operating income - cash basis | 57,568 | 46,796 | 113,799 | 92,182 | ||||||||||||
Less: non-same center and other NOI | (10,370 | ) | (2,682 | ) | (20,675 | ) | (5,085 | ) | ||||||||
Total same center NOI - cash basis | $ | 47,198 | $ | 44,114 | $ | 93,124 | $ | 87,097 |
Exhibit Number | Exhibit Descriptions | ||
3.1 | Articles of amendment to amended and restated articles of incorporation of Tanger Factory Outlet Centers, Inc., dated May 24, 2012. (Incorporated by reference to the exhibits to the Company's and Operating Partnership's Form S-3 dated June 7, 2012.) | ||
3.2 | By-laws of Tanger Factory Outlet Centers, Inc. restated to reflect all amendments through May 18, 2012. (Incorporated by reference to the exhibits to the Company's and Operating Partnership's Form S-3 dated June 7, 2012.) | ||
10.1 | Term loan credit agreement dated February 24, 2012 between Tanger Properties Limited Partnership and Wells Fargo Bank, National Assocation, as Adminstrative Agent, Wells Fargo Bank Securities, LLC, SunTrust Robinson Humphrey, Inc.m and PNC Capital MArkets LLC, as Joint Lead Arrangers, SunTrust Bank and PNC Bank, National Association, as Co-Syndication Agents, Regions Bank, as Documentation Agent and Wells Fargo Securities, LLC, as Sole Bookrunner. (Incorporated by reference to the exhibits to the Company's and Operating Partnership's Current Report on Form 8-K dated February 29, 2012.) | ||
10.2* | Amended and restated employment agreement of Steven B. Tanger dated February 28, 2012. (Incorporated by reference to the exhibits to the Company's and Operating Partnership's Current Report on Form 8-K dated February 29, 2012.) | ||
10.3* | Restricted Share Agreement between the Company and Steven. B. Tanger dated February 28, 2012. (Incorporated by reference to the exhibits to the Company's and Operating Partnership's Quarterly Report on Form 10-Q for the quarter ended March 31, 2012.) | ||
12.1 | Company's Ratio of Earnings to Fixed Charges. | ||
12.2 | Operating Partnership's Ratio of Earnings to Fixed Charges. | ||
31.1 | Principal Executive Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes - Oxley Act of 2002 for Tanger Factory Outlet Centers, Inc. | ||
31.2 | Principal Financial Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes - Oxley Act of 2002 for Tanger Factory Outlet Centers, Inc. | ||
31.3 | Principal Executive Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes - Oxley Act of 2002 for Tanger Properties Limited Partnership. | ||
31.4 | Principal Financial Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes - Oxley Act of 2002 for Tanger Properties Limited Partnership. | ||
32.1 | Principal Executive Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes - Oxley Act of 2002 for Tanger Factory Outlet Centers, Inc. | ||
32.2 | Principal Financial Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes - Oxley Act of 2002 for Tanger Factory Outlet Centers, Inc. | ||
32.3 | Principal Executive Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes - Oxley Act of 2002 for Tanger Properties Limited Partnership. | ||
32.4 | Principal Financial Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes - Oxley Act of 2002 for Tanger Properties Limited Partnership. | ||
101 | The following financial statements from Tanger Factory Outlet Centers, Inc. and Tanger Properties Limited Partnership's dual Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, formatted in XBRL: (i) Consolidated Balance Sheets (unaudited), (ii) Consolidated Statements of Operations (unaudited), (iii) Consolidated Statements of Other Comprehensive Income (unaudited), (iv) Consolidated Statements of Equity (unaudited), (v) Consolidated Statements of Cash Flows (unaudited), and (vi) Notes to Consolidated Financial Statements (unaudited). (In accordance with Rule 406T of Regulation S-T, this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.) | ||
* | Management contract or compensatory plan or arrangement. |
TANGER FACTORY OUTLET CENTERS, INC. | |
By: | /s/ Frank C. Marchisello, Jr. |
Frank C. Marchisello, Jr. | |
Executive Vice President and Chief Financial Officer | |
TANGER PROPERTIES LIMITED PARTNERSHIP | |
By: TANGER GP TRUST, its sole general partner | |
By: | /s/ Frank C. Marchisello, Jr. |
Frank C. Marchisello, Jr. | |
Vice President and Treasurer |
Exhibit Number | Exhibit Descriptions | ||
3.1 | Articles of amendment to amended and restated articles of incorporation of Tanger Factory Outlet Centers, Inc., dated May 24, 2012. (Incorporated by reference to the exhibits to the Company's and Operating Partnership's Form S-3 dated June 7, 2012.) | ||
3.2 | By-laws of Tanger Factory Outlet Centers, Inc. restated to reflect all amendments through May 18, 2012. (Incorporated by reference to the exhibits to the Company's and Operating Partnership's Form S-3 dated June 7, 2012.) | ||
10.1 | Term loan credit agreement dated February 24, 2012 between Tanger Properties Limited Partnership and Wells Fargo Bank, National Assocation, as Adminstrative Agent, Wells Fargo Bank Securities, LLC, SunTrust Robinson Humphrey, Inc.m and PNC Capital MArkets LLC, as Joint Lead Arrangers, SunTrust Bank and PNC Bank, National Association, as Co-Syndication Agents, Regions Bank, as Documentation Agent and Wells Fargo Securities, LLC, as Sole Bookrunner. (Incorporated by reference to the exhibits to the Company's and Operating Partnership's Current Report on Form 8-K dated February 29, 2012.) | ||
10.2* | Amended and restated employment agreement of Steven B. Tanger dated February 28, 2012. ( Incorporated by reference to the exhibits to the Company's and Operating Partnership's Current Report on Form 8-K dated February 29, 2012.) | ||
10.3* | Restricted Share Agreement between the Company and Steven. B. Tanger dated February 28, 2012. (Incorporated by reference to the exhibits to the Company's and Operating Partnership's Quarterly Report on Form 10-Q for the quarter ended March 31, 2012.) | ||
12.1 | Company's Ratio of Earnings to Fixed Charges. | ||
12.2 | Operating Partnership's Ratio of Earnings to Fixed Charges. | ||
31.1 | Principal Executive Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes - Oxley Act of 2002 for Tanger Factory Outlet Centers, Inc. | ||
31.2 | Principal Financial Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes - Oxley Act of 2002 for Tanger Factory Outlet Centers, Inc. | ||
31.3 | Principal Executive Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes - Oxley Act of 2002 for Tanger Properties Limited Partnership. | ||
31.4 | Principal Financial Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes - Oxley Act of 2002 for Tanger Properties Limited Partnership. | ||
32.1 | Principal Executive Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes - Oxley Act of 2002 for Tanger Factory Outlet Centers, Inc. | ||
32.2 | Principal Financial Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes - Oxley Act of 2002 for Tanger Factory Outlet Centers, Inc. | ||
32.3 | Principal Executive Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes - Oxley Act of 2002 for Tanger Properties Limited Partnership. | ||
32.4 | Principal Financial Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes - Oxley Act of 2002 for Tanger Properties Limited Partnership. | ||
101 | The following financial statements from Tanger Factory Outlet Centers, Inc. and Tanger Properties Limited Partnership's dual Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, formatted in XBRL: (i) Consolidated Balance Sheets (unaudited), (ii) Consolidated Statements of Operations (unaudited), (iii) Consolidated Statements of Other Comprehensive income (unaudited), (iv) Consolidated Statements of Equity (unaudited), (v) Consolidated Statements of Cash Flows (unaudited), and (vi) Notes to Consolidated Financial Statements (unaudited). | ||
* | Management contract or compensatory plan or arrangement. |
Six months ended | ||||||||
June 30, | ||||||||
2012 | 2011 | |||||||
Earnings: | ||||||||
Income before equity in losses of unconsolidated joint ventures and noncontrolling interests | $ | 23,611 | $ | 22,455 | ||||
Add: | ||||||||
Distributed income of unconsolidated joint ventures | 466 | 156 | ||||||
Amortization of capitalized interest | 255 | 253 | ||||||
Interest expense | 23,372 | 21,038 | ||||||
Portion of rent expense - interest factor | 1,032 | 906 | ||||||
Total earnings | 48,736 | 44,808 | ||||||
Fixed charges: | ||||||||
Interest expense | 23,372 | 21,038 | ||||||
Capitalized interest and capitalized amortization of debt issue costs | 514 | 249 | ||||||
Portion of rent expense - interest factor | 1,032 | 906 | ||||||
Total fixed charges | $ | 24,918 | $ | 22,193 | ||||
Ratio of earnings to fixed charges | 2.0 | 2.0 | ||||||
Six Months Ended | ||||||||
June 30, | ||||||||
2012 | 2011 | |||||||
Earnings: | ||||||||
Income before equity in losses of unconsolidated joint ventures and noncontrolling interests | $ | 23,611 | $ | 22,455 | ||||
Add: | ||||||||
Distributed income of unconsolidated joint ventures | 466 | 156 | ||||||
Amortization of capitalized interest | 255 | 253 | ||||||
Interest expense | 23,372 | 21,038 | ||||||
Portion of rent expense - interest factor | 1,032 | 906 | ||||||
Total earnings | 48,736 | 44,808 | ||||||
Fixed charges: | ||||||||
Interest expense | 23,372 | 21,038 | ||||||
Capitalized interest and capitalized amortization of debt issue costs | 514 | 249 | ||||||
Portion of rent expense - interest factor | 1,032 | 906 | ||||||
Total fixed charges | $ | 24,918 | $ | 22,193 | ||||
Ratio of earnings to fixed charges | 2.0 | 2.0 | ||||||
1. | I have reviewed this quarterly report on Form 10-Q of Tanger Factory Outlet Centers, Inc. for the period ended June 30, 2012; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
1. | I have reviewed this quarterly report on Form 10-Q of Tanger Factory Outlet Centers, Inc. for the period ended June 30, 2012; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
1 | I have reviewed this quarterly report on Form 10-Q of Tanger Properties Limited Partnership for the period ended June 30, 2012; | ||
2 | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||
3 | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | ||
4 | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | ||
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | ||
5 | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | ||
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and | ||
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. | ||
Date: August 8, 2012 | |||
/s/ Steven B. Tanger | |||
Steven B. Tanger | |||
President and Chief Executive Officer | |||
Tanger GP Trust, sole general partner of the Operating Partnership |
1 | I have reviewed this quarterly report on Form 10-Q of Tanger Properties Limited Partnership for the period ended June 30, 2012; | ||
2 | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||
3 | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | ||
4 | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | ||
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | ||
5 | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | ||
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and | ||
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. | ||
Date: August 8, 2012 | |||
/s/ Frank C. Marchisello, Jr. | |||
Frank C. Marchisello, Jr. | |||
Vice-President and Treasurer | |||
Tanger GP Trust, sole general partner of the Operating Partnership (Principal Financial Officer) |
Date: August 8, 2012 | /s/ Steven B. Tanger |
Steven B. Tanger President and Chief Executive Officer Tanger Factory Outlet Centers, Inc. |
Date: August 8, 2012 | /s/ Frank C. Marchisello, Jr. |
Frank C. Marchisello, Jr. Executive Vice President and Chief Financial Officer |
(i) | the accompanying Quarterly Report on Form 10-Q of the Operating Partnership for the quarter ended June 30, 2012 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and |
(ii) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Operating Partnership. |
Date: August 8, 2012 | /s/ Steven B. Tanger | |
Steven B. Tanger | ||
President and Chief Executive Officer | ||
Tanger GP Trust, sole general partner of the Operating Partnership |
(i) | the accompanying Quarterly Report on Form 10-Q of the Operating Partnership for the quarter ended June 30, 2012 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and |
(ii) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Operating Partnership. |
Date: August 8, 2012 | /s/ Frank C. Marchisello, Jr. |
Frank C. Marchisello, Jr. | |
Vice President and Treasurer Tanger GP Trust, sole general partner of the Operating Partnership (Principal Financial Officer) |
Partners' Equity of the Operating Partnership (Details) (Tanger Properties Limited Partnership)
|
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Tanger Properties Limited Partnership
|
||
Schedule of Partners' Equity of the Operating Partnership [Line Items] | ||
General Partners' Capital Account, Units Outstanding | 250,000 | 250,000 |
Limited Partners' Capital Account, Units Outstanding | 24,451,437 | 24,304,887 |
Partners' Capital Account, Units | 24,701,437 | 24,554,887 |
Fair Value Measurement (Details) (Tanger Properties Limited Partnership, USD $)
|
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Tanger Properties Limited Partnership
|
||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 1,100,000,000 | $ 1,100,000,000 |
Long-term Debt | $ 1,058,083,000 | $ 1,025,542,000 |
Investments in Unconsolidated Real Estate Joint Ventures Summary Statements of Operations for Unconsolidated Joint Ventures (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Partnership Interest [Member]
|
||||
Summary Statements of Operations of Unconsolidated Joint Ventures [Line Items] | ||||
Revenues | $ 11,606 | $ 9,752 | $ 23,264 | $ 19,314 |
Operating Costs and Expenses | 5,083 | 4,473 | 9,974 | 8,574 |
General and Administrative Expense | 237 | (131) | 400 | 56 |
Acquisition costs | 0 | 0 | 704 | 0 |
Abandoned development costs | 436 | 0 | 1,310 | 0 |
Impairment of Real Estate | 420 | 0 | 420 | 0 |
Depreciation, Depletion and Amortization, Nonproduction | 4,300 | 3,627 | 8,908 | 7,238 |
Total Expenses | 10,476 | 7,969 | 21,716 | 15,868 |
Operating Income (Loss) | 1,130 | 1,783 | 1,548 | 3,446 |
Interest Expense | 3,598 | 4,126 | 7,427 | 5,929 |
Net income | (2,468) | (2,343) | (5,879) | (2,483) |
Tanger Factory Outlet Centers, Inc
|
||||
Summary Statements of Operations of Unconsolidated Joint Ventures [Line Items] | ||||
Revenues | 87,335 | 72,101 | 171,578 | 142,840 |
Operating Costs and Expenses | 27,977 | 23,765 | 54,065 | 47,873 |
General and Administrative Expense | 8,699 | 7,185 | 18,719 | 13,952 |
Acquisition costs | 0 | 974 | 0 | 1,541 |
Abandoned development costs | 0 | 0 | 0 | 158 |
Depreciation, Depletion and Amortization, Nonproduction | 24,923 | 17,858 | 50,438 | 35,823 |
Total Expenses | 61,599 | 49,782 | 123,222 | 99,347 |
Operating Income (Loss) | 25,736 | 22,319 | 48,356 | 43,493 |
Interest Expense | (12,411) | (10,713) | 24,745 | 21,038 |
Net income | 12,458 | 10,842 | 21,292 | 21,659 |
Income (Loss) from Equity Method Investments | (867) | (764) | (2,319) | (796) |
Equity Method Invesment Company and Operating Partnership Share of Real Estate Related Depreciation | $ 1,793 | $ 1,336 | $ 3,608 | $ 2,642 |
Share-based Compensation of the Company (Tables) (Tanger Factory Outlet Centers, Inc)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Tanger Factory Outlet Centers, Inc
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Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | The following table summarizes information related to unvested restricted common shares outstanding as of June 30, 2012:
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Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | We recorded share-based compensation expense in general and administrative expenses in our consolidated statements of operations as follows (in thousands):
(1) For the six months ended June 30, 2012, includes approximately $1.3 million of compensation expense related to 45,000 shares that vested immediately upon grant related to the Employment Agreement described above. |
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