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 | |
Top 25 Tenants Based on Percentage of Total Annualized Base Rent | |
Lease Expirations as of June 30, 2018 | |
Capital expenditures | |
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 |
State | # of Centers | GLA | % of GLA | |||||
South Carolina | 5 | 1,599,094 | 12 | % | ||||
New York | 2 | 1,468,815 | 11 | % | ||||
Georgia | 3 | 1,121,579 | 9 | % | ||||
Texas | 3 | 1,001,357 | 8 | % | ||||
Pennsylvania | 3 | 997,441 | 8 | % | ||||
Michigan | 2 | 671,562 | 5 | % | ||||
Delaware | 1 | 557,353 | 4 | % | ||||
Alabama | 1 | 556,673 | 4 | % | ||||
North Carolina | 3 | 505,056 | 4 | % | ||||
New Jersey | 1 | 489,706 | 4 | % | ||||
Tennessee | 1 | 448,150 | 3 | % | ||||
Ohio | 1 | 411,785 | 3 | % | ||||
Arizona | 1 | 410,734 | 3 | % | ||||
Florida | 1 | 351,721 | 3 | % | ||||
Missouri | 1 | 329,861 | 3 | % | ||||
Louisiana | 1 | 321,066 | 3 | % | ||||
Mississippi | 1 | 320,348 | 3 | % | ||||
Utah | 1 | 319,661 | 2 | % | ||||
Connecticut | 1 | 311,516 | 2 | % | ||||
Iowa | 1 | 276,331 | 2 | % | ||||
New Hampshire | 1 | 250,107 | 2 | % | ||||
Maryland | 1 | 199,425 | 2 | % | ||||
Total | 36 | 12,919,341 | 100 | % | ||||
Unconsolidated Joint Venture Properties | ||||||||
# of Centers | GLA | Ownership % | ||||||
Charlotte, NC | 1 | 397,857 | 50.00 | % | ||||
Columbus, OH | 1 | 355,245 | 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 | 2,370,432 | ||||||
Grand Total | 44 | 15,289,773 |
Location | Total GLA 6/30/18 | % Occupied 6/30/18 | % Occupied 12/31/17 | % Occupied 6/30/17 | ||||||||
Deer Park, NY | 739,109 | 97 | % | 95 | % | 94 | % | |||||
Riverhead, NY | 729,706 | 92 | % | 99 | % | 97 | % | |||||
Rehoboth Beach, DE | 557,353 | 98 | % | 98 | % | 99 | % | |||||
Foley, AL | 556,673 | 95 | % | 99 | % | 99 | % | |||||
Atlantic City, NJ | 489,706 | 87 | % | 88 | % | 87 | % | |||||
San Marcos, TX | 471,816 | 96 | % | 99 | % | 95 | % | |||||
Sevierville, TN | 448,150 | 99 | % | 100 | % | 100 | % | |||||
Savannah, GA | 429,089 | 96 | % | 98 | % | 97 | % | |||||
Myrtle Beach Hwy 501, SC | 425,334 | 88 | % | 94 | % | 93 | % | |||||
Jeffersonville, OH | 411,785 | 96 | % | 95 | % | 94 | % | |||||
Glendale, AZ (Westgate) | 410,734 | 97 | % | 99 | % | 96 | % | |||||
Myrtle Beach Hwy 17, SC | 403,346 | 100 | % | 100 | % | 93 | % | |||||
Charleston, SC | 382,180 | 97 | % | 98 | % | 95 | % | |||||
Lancaster, PA | 376,997 | 92 | % | 95 | % | 97 | % | |||||
Pittsburgh, PA | 372,944 | 98 | % | 99 | % | 97 | % | |||||
Commerce, GA | 371,408 | 96 | % | 98 | % | 98 | % | |||||
Grand Rapids, MI | 357,103 | 95 | % | 96 | % | 94 | % | |||||
Fort Worth, TX | 351,741 | 97 | % | 94 | % | N/A | ||||||
Daytona Beach, FL | 351,721 | 99 | % | 100 | % | 96 | % | |||||
Branson, MO | 329,861 | 99 | % | 100 | % | 100 | % | |||||
Locust Grove, GA | 321,082 | 100 | % | 99 | % | 98 | % | |||||
Gonzales, LA | 321,066 | 98 | % | 99 | % | 100 | % | |||||
Southaven, MS | 320,348 | 94 | % | 99 | % | 96 | % | |||||
Park City, UT | 319,661 | 94 | % | 98 | % | 98 | % | |||||
Mebane, NC | 318,886 | 99 | % | 100 | % | 99 | % | |||||
Howell, MI | 314,459 | 94 | % | 98 | % | 97 | % | |||||
Mashantucket, CT (Foxwoods) | 311,516 | 95 | % | 94 | % | 94 | % | |||||
Williamsburg, IA | 276,331 | 93 | % | 96 | % | 97 | % | |||||
Tilton, NH | 250,107 | 94 | % | 93 | % | 96 | % | |||||
Hershey, PA | 247,500 | 100 | % | 100 | % | 100 | % | |||||
Hilton Head II, SC | 206,564 | 92 | % | 94 | % | 97 | % | |||||
Ocean City, MD | 199,425 | 96 | % | 98 | % | 82 | % | |||||
Hilton Head I, SC | 181,670 | 97 | % | 99 | % | 100 | % | |||||
Terrell, TX | 177,800 | 96 | % | 96 | % | 96 | % | |||||
Blowing Rock, NC | 104,009 | 96 | % | 98 | % | 98 | % | |||||
Nags Head, NC | 82,161 | 100 | % | 97 | % | 100 | % | |||||
Total | 12,919,341 | 96 | % | (1) | 97 | % | (2) | 96 | % | (3) |
(1) | Excludes the occupancy rate at our Fort Worth outlet center which opened during the fourth quarter of 2017 and has not yet stabilized. |
(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 at our Daytona Beach outlet center which opened during the fourth quarter of 2016 and had not yet stabilized. |
Location | Total GLA 6/30/18 | % Occupied 6/30/18 | % Occupied 12/31/17 | % Occupied 6/30/17 | ||||||||
Charlotte, NC | 397,857 | 99 | % | 99 | % | 98 | % | |||||
Columbus, OH | 355,245 | 95 | % | 97 | % | 93 | % | |||||
Ottawa, ON | 354,978 | 94 | % | 95 | % | 90 | % | |||||
Texas City, TX (Galveston/Houston) | 352,705 | 95 | % | 99 | % | 99 | % | |||||
National Harbor, MD | 341,156 | 95 | % | 99 | % | 96 | % | |||||
Cookstown, ON | 307,779 | 99 | % | 99 | % | 96 | % | |||||
Bromont, QC | 161,307 | 73 | % | 72 | % | 69 | % | |||||
Saint-Sauveur, QC | 99,405 | 89 | % | 96 | % | 96 | % | |||||
Total | 2,370,432 | 94 | % | 96 | % | 94 | % | (1) |
(1) | Excludes the occupancy rate at our Columbus outlet center which opened in June 2016 and had not yet stabilized. |
Ranking (2) | 12 Months SPSF | Period End Occupancy | Sq Ft (thousands) | % of Square Feet | % of Portfolio NOI (3) | ||||||||
Consolidated Centers | |||||||||||||
Centers 1 - 5 | $ | 523 | 96 | % | 2,794 | 23 | % | 30 | % | ||||
Centers 6 - 10 | $ | 437 | 98 | % | 1,842 | 15 | % | 17 | % | ||||
Centers 11 - 15 | $ | 392 | 98 | % | 1,541 | 12 | % | 12 | % | ||||
Centers 16 - 20 | $ | 358 | 94 | % | 1,914 | 15 | % | 15 | % | ||||
Centers 21 - 25 | $ | 316 | 94 | % | 1,814 | 14 | % | 12 | % | ||||
Centers 26 - 30 | $ | 287 | 96 | % | 1,494 | 12 | % | 9 | % | ||||
Centers 31 - 35 | $ | 250 | 95 | % | 1,169 | 9 | % | 5 | % | ||||
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 | $ | 523 | 96 | % | 2,794 | 23 | % | 30 | % | ||||
Centers 1 - 10 | $ | 487 | 97 | % | 4,636 | 38 | % | 47 | % | ||||
Centers 1 - 15 | $ | 462 | 97 | % | 6,177 | 50 | % | 59 | % | ||||
Centers 1 - 20 | $ | 436 | 96 | % | 8,091 | 65 | % | 74 | % | ||||
Centers 1 - 25 | $ | 414 | 96 | % | 9,905 | 79 | % | 86 | % | ||||
Centers 1 - 30 | $ | 396 | 96 | % | 11,399 | 91 | % | 95 | % | ||||
Centers 1 - 35 | $ | 383 | 96 | % | 12,568 | 100 | % | 100 | % | ||||
Unconsolidated centers (4) | $ | 451 | 96 | % | 1,447 | n/a | n/a | ||||||
Domestic centers (5) | $ | 391 | 96 | % | 14,015 | 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 trailing twelve months ended June 30, 2018. Excludes outlet centers open less than 12 full calendar months and centers which have not yet stabilized (Fort Worth, Texas opened in October 2017). | ||||||||||||
(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 | Lancaster, PA | Locust Grove, GA | Myrtle Beach 17, SC | Westgate (Glendale), AZ | ||||||||
Centers 11 - 15: | Charleston, SC | Grand Rapids, MI | Hershey, PA | Hilton Head I, SC | Pittsburgh, PA | ||||||||
Centers 16 - 20: | Atlantic City, NJ | Foxwoods (Mashantucket), CT | Gonzales, LA | Park City, UT | San Marcos, TX | ||||||||
Centers 21 - 25: | Foley, AL | Myrtle Beach 501, SC | Nags Head, NC | Savannah, GA | Southaven (Memphis), MS | ||||||||
Centers 26 - 30: | Commerce, GA | Daytona Beach, FL | Hilton Head II, SC | Howell, MI | Tilton, NH | ||||||||
Centers 31 - 34: | Blowing Rock, NC | Jeffersonville, OH | Ocean City, MD | Terrell, TX | Williamsburg, IA | ||||||||
(3) | Based on the Company's forecast of Portfolio NOI (see non-GAAP definitions). The Company's forecast is based on management's estimates as of March 31, 2018 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, 2017. | ||||||||||||
(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 |
Consolidated | Unconsolidated | ||||||||||||||
Tenant | Brands | # of Stores | GLA | % of Total GLA | % of Total Annualized Base Rent (2) | # of Stores | |||||||||
Ascena Retail Group, Inc. | Dress Barn, Loft, Ann Taylor, Justice, Lane Bryant, Maurices | 145 | 876,450 | 6.8 | % | 6.9 | % | 18 | |||||||
The Gap, Inc. | Gap, Banana Republic, Old Navy | 98 | 1,034,948 | 8.0 | % | 5.8 | % | 16 | |||||||
PVH Corp. | Tommy Hilfiger, Van Heusen, Calvin Klein | 67 | 410,108 | 3.2 | % | 3.8 | % | 15 | |||||||
Under Armour, Inc. | Under Armour, Under Armour Kids | 33 | 257,375 | 2.0 | % | 2.7 | % | 6 | |||||||
Nike, Inc. | Nike, Converse, Hurley | 44 | 468,184 | 3.6 | % | 2.6 | % | 11 | |||||||
G-III Apparel Group, Ltd. | Bass, Wilson's Leather, Donna Karan | 59 | 273,742 | 2.1 | % | 2.6 | % | 6 | |||||||
Tapestry, Inc. | Coach, Kate Spade | 47 | 225,215 | 1.7 | % | 2.5 | % | 10 | |||||||
Carter's, Inc. | Carters, OshKosh B Gosh | 60 | 259,051 | 2.0 | % | 2.3 | % | 11 | |||||||
American Eagle Outfitters, Inc. | American Eagle Outfitters, Aerie | 37 | 260,807 | 2.0 | % | 2.3 | % | 7 | |||||||
V. F. Corporation | VF Outlet, The North Face, Vans, Timberland, Lee/Wrangler | 33 | 289,948 | 2.2 | % | 2.2 | % | 4 | |||||||
Signet Jewelers Limited | Kay Jewelers, Zales, Jared Vault | 57 | 129,776 | 1.0 | % | 2.0 | % | 8 | |||||||
Hanesbrands Inc. | Hanesbrands, Maidenform, Champion | 41 | 200,056 | 1.5 | % | 1.8 | % | 2 | |||||||
Michael Kors Holdings Limited | Michael Kors, Michael Kors Men's | 27 | 125,891 | 1.0 | % | 1.8 | % | 5 | |||||||
Ralph Lauren Corporation | Polo Ralph Lauren, Polo Children, Polo Ralph Lauren Big & Tall, Lauren Ralph Lauren | 38 | 380,955 | 2.9 | % | 1.8 | % | 5 | |||||||
Chico's, FAS Inc. | Chicos, White House/Black Market, Soma Intimates | 48 | 137,966 | 1.1 | % | 1.8 | % | 6 | |||||||
Adidas AG | Adidas, Reebok | 30 | 187,275 | 1.4 | % | 1.7 | % | 11 | |||||||
Caleres Inc. | Famous Footwear, Naturalizer, Allen Edmonds | 39 | 190,140 | 1.5 | % | 1.6 | % | 11 | |||||||
Columbia Sportswear Company | Columbia Sportswear | 19 | 148,892 | 1.2 | % | 1.6 | % | 3 | |||||||
J. Crew Group, Inc. | J. Crew, J. Crew Men's | 29 | 155,376 | 1.2 | % | 1.5 | % | 4 | |||||||
Brooks Brothers Group, Inc. | Brooks Brothers | 28 | 165,469 | 1.3 | % | 1.5 | % | 5 | |||||||
Skechers USA, Inc | Skechers | 32 | 144,313 | 1.1 | % | 1.5 | % | 6 | |||||||
Express Inc. | Express Factory | 24 | 167,418 | 1.3 | % | 1.4 | % | 4 | |||||||
Children's Place, Inc. | Children's Place | 25 | 149,930 | 1.2 | % | 1.4 | % | 5 | |||||||
Rack Room Shoes, Inc. | Rack Room Shoes | 24 | 139,559 | 1.1 | % | 1.3 | % | 2 | |||||||
H&M Hennes & Mauritz L.P. | H&M | 19 | 407,342 | 3.2 | % | 1.3 | % | 2 | |||||||
Total of Top 25 tenants | 1,103 | 7,186,186 | 55.6 | % | 57.7 | % | 183 |
(1) | Excludes leases that have been entered into but which tenant has not yet taken possession, temporary leases and month-to month leases. |
(2) | Annualized base rent is defined as the minimum monthly payments due as of the end of the reporting period annualized, excluding periodic contractual fixed increases. Include rents which are based on a percentage of sales in lieu of fixed contractual rents. |
Six months ended | ||||||||
June 30, | ||||||||
2018 | 2017 | |||||||
Value-enhancing: | ||||||||
New center developments and expansions | $ | 5,285 | $ | 56,306 | ||||
Other | — | 3,093 | ||||||
5,285 | 59,399 | |||||||
Recurring capital expenditures: | ||||||||
Second generation tenant allowances | 8,326 | 10,034 | ||||||
Operational capital expenditures | 9,134 | 11,097 | ||||||
Major outlet center renovations | 1,786 | 10,243 | ||||||
19,246 | 31,374 | |||||||
Total additions to rental property-accrual basis | 24,531 | 90,773 | ||||||
Conversion from accrual to cash basis | 16,681 | (2,012 | ) | |||||
Total additions to rental property-cash basis | $ | 41,212 | $ | 88,761 |
TTM ended | 06/30/2018 | 06/30/2017 | |||||
Re-tenanted Space (terms greater than 12 months)(1): | |||||||
Number of leases | 96 | 85 | |||||
Gross leasable area | 327,409 | 307,029 | |||||
New initial rent per square foot | $ | 38.15 | $ | 38.56 | |||
Prior expiring rent per square foot | $ | 35.32 | $ | 34.68 | |||
Percent increase (2) | 8.0 | % | 11.2 | % | |||
New straight line rent per square foot | $ | 41.29 | $ | 43.96 | |||
Prior straight line rent per square foot | $ | 34.73 | $ | 33.52 | |||
Percent increase (2) | 18.9 | % | 31.1 | % | |||
Renewed Space (terms greater than 12 months)(1): | |||||||
Number of leases | 200 | 219 | |||||
Gross leasable area | 1,090,055 | 991,434 | |||||
New initial rent per square foot | $ | 30.41 | $ | 31.64 | |||
Prior expiring rent per square foot | $ | 28.95 | $ | 28.98 | |||
Percent increase | 5.0 | % | 9.2 | % | |||
New straight line rent per square foot | $ | 31.73 | $ | 33.59 | |||
Prior straight line rent per square foot | $ | 28.27 | $ | 28.56 | |||
Percent increase | 12.3 | % | 17.6 | % | |||
Total Re-tenanted and Renewed Space (terms greater than 12 months)(1): | |||||||
Number of leases | 296 | 304 | |||||
Gross leasable area | 1,417,464 | 1,298,463 | |||||
New initial rent per square foot | $ | 32.20 | $ | 33.28 | |||
Prior expiring rent per square foot | $ | 30.42 | $ | 30.33 | |||
Percent increase (2) | 5.8 | % | 9.7 | % | |||
New straight line rent per square foot | $ | 33.94 | $ | 36.04 | |||
Prior straight line rent per square foot | $ | 29.76 | $ | 29.74 | |||
Percent increase (2) | 14.0 | % | 21.2 | % | |||
Total Re-tenanted and Renewed Space (all terms)(3): | |||||||
Number of leases | 358 | 349 | |||||
Gross leasable area | 1,684,690 | 1,487,369 | |||||
New initial rent per square foot | $ | 30.55 | $ | 31.98 | |||
Prior expiring rent per square foot | $ | 30.27 | $ | 29.75 | |||
Percent increase (2) | 0.9 | % | 7.5 | % | |||
New straight line rent per square foot | $ | 32.01 | $ | 34.40 | |||
Prior straight line rent per square foot | $ | 29.54 | $ | 29.17 | |||
Percent increase (2) | 8.4 | % | 17.9 | % |
(1) | Represents change in rent (base rent and common area maintenance) for leases for a term of more than 12 months for new stores that opened or renewals that started during the respective trailing twelve month periods within the consolidated portfolio |
(2) | Excludes leases related to re-merchandising projects (see rent spreads including these leases on the following page) |
(3) | Represents change in rent (base rent and common area maintenance) for all leases for new stores that opened or renewals that started during the respective trailing twelve month periods within the consolidated portfolio, expect for license agreements, seasonal tenants, and month-to-month leases |
TTM ended | 06/30/2018 | 06/30/2017 | ||
Number of leases related to re-merchandising projects | 6 | 3 | ||
Gross leasable area of these leases | 121,340 | 43,873 | ||
Re-tenanted Space (terms greater than 12 months)(1): | ||||
Cash basis percent increase | 0.1 | % | 5.7 | % |
Straight-line basis percent increase | 9.2 | % | 23.5 | % |
Total Re-tenanted and Renewed Space (terms greater than 12 months)(1): | ||||
Cash basis percent increase | 3.5 | % | 8.2 | % |
Straight-line basis percent increase | 11.3 | % | 19.3 | % |
Re-tenanted Space (all terms)(2): | ||||
Cash basis percent (decrease) increase | (0.4 | )% | 5.7 | % |
Straight-line basis percent increase | 8.7 | % | 23.5 | % |
Total Re-tenanted and Renewed Space (all terms)(2): | ||||
Number of leases | 364 | 352 | ||
Gross leasable area | 1,806,030 | 1,531,242 | ||
Cash basis percent (decrease) increase | (0.8 | )% | 6.2 | % |
Straight-line basis percent increase | 6.3 | % | 16.3 | % |
(1) | Represents change in rent (base rent and common area maintenance) for leases for a term of more than 12 months for new stores that opened or renewals that started during the respective trailing twelve month periods within the consolidated portfolio |
(2) | Represents change in rent (base rent and common area maintenance) for all leases for new stores that opened or renewals that started during the respective trailing twelve month periods within the consolidated portfolio, except for license agreements, seasonal tenants, and month-to-month leases |
June 30, | December 31, | ||||||
2018 | 2017 | ||||||
Assets | |||||||
Rental property: | |||||||
Land | $ | 279,978 | $ | 279,978 | |||
Buildings, improvements and fixtures | 2,825,729 | 2,793,638 | |||||
Construction in progress | 1,329 | 14,854 | |||||
3,107,036 | 3,088,470 | ||||||
Accumulated depreciation | (956,418 | ) | (901,967 | ) | |||
Total rental property, net | 2,150,618 | 2,186,503 | |||||
Cash and cash equivalents | 4,261 | 6,101 | |||||
Investments in unconsolidated joint ventures | 110,502 | 119,436 | |||||
Deferred lease costs and other intangibles, net | 124,234 | 132,061 | |||||
Prepaids and other assets | 98,982 | 96,004 | |||||
Total assets | $ | 2,488,597 | $ | 2,540,105 | |||
Liabilities and Equity | |||||||
Liabilities | |||||||
Debt: | |||||||
Senior, unsecured notes, net | $ | 1,135,705 | $ | 1,134,755 | |||
Unsecured term loan, net | 323,249 | 322,975 | |||||
Mortgages payable, net | 89,235 | 99,761 | |||||
Unsecured lines of credit, net | 220,018 | 206,160 | |||||
Total debt | 1,768,207 | 1,763,651 | |||||
Accounts payable and accrued expenses | 65,445 | 90,416 | |||||
Other liabilities | 79,281 | 73,736 | |||||
Total liabilities | 1,912,933 | 1,927,803 | |||||
Commitments and contingencies | |||||||
Equity | |||||||
Tanger Factory Outlet Centers, Inc.: | |||||||
Common shares, $.01 par value, 300,000,000 shares authorized, 93,907,034 and 94,560,536 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively | 939 | 946 | |||||
Paid in capital | 770,877 | 784,782 | |||||
Accumulated distributions in excess of net income | (204,506 | ) | (184,865 | ) | |||
Accumulated other comprehensive loss | (20,722 | ) | (19,285 | ) | |||
Equity attributable to Tanger Factory Outlet Centers, Inc. | 546,588 | 581,578 | |||||
Equity attributable to noncontrolling interests: | |||||||
Noncontrolling interests in Operating Partnership | 29,076 | 30,724 | |||||
Noncontrolling interests in other consolidated partnerships | — | — | |||||
Total equity | 575,664 | 612,302 | |||||
Total liabilities and equity | $ | 2,488,597 | $ | 2,540,105 |
Three months ended | Six months ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues: | |||||||||||||||
Base rentals | $ | 80,925 | $ | 80,788 | $ | 162,458 | $ | 161,118 | |||||||
Percentage rentals | 2,027 | 1,805 | 3,456 | 3,660 | |||||||||||
Expense reimbursements | 34,128 | 34,023 | 72,408 | 70,621 | |||||||||||
Management, leasing and other services | 630 | 609 | 1,243 | 1,188 | |||||||||||
Other income | 2,001 | 2,389 | 3,681 | 4,395 | |||||||||||
Total revenues | 119,711 | 119,614 | 243,246 | 240,982 | |||||||||||
Expenses: | |||||||||||||||
Property operating | 37,946 | 37,116 | 80,164 | 77,503 | |||||||||||
General and administrative | 10,997 | 11,500 | 22,109 | 22,912 | |||||||||||
Abandoned pre-development costs | — | — | — | 627 | |||||||||||
Depreciation and amortization | 32,694 | 32,905 | 65,817 | 64,199 | |||||||||||
Total expenses | 81,637 | 81,521 | 168,090 | 165,241 | |||||||||||
Operating income | 38,074 | 38,093 | 75,156 | 75,741 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense | (16,181 | ) | (16,520 | ) | (31,981 | ) | (33,007 | ) | |||||||
Gain on sale of assets | — | 6,943 | — | 6,943 | |||||||||||
Other non-operating income | 191 | 57 | 400 | 92 | |||||||||||
Income before equity in earnings of unconsolidated joint ventures | 22,084 | 28,573 | 43,575 | 49,769 | |||||||||||
Equity in earnings of unconsolidated joint ventures | 2,206 | 2,374 | 4,400 | 4,692 | |||||||||||
Net income | 24,290 | 30,947 | 47,975 | 54,461 | |||||||||||
Noncontrolling interests in Operating Partnership | (1,229 | ) | (1,557 | ) | (2,446 | ) | (2,735 | ) | |||||||
Noncontrolling interests in other consolidated partnerships | (92 | ) | — | 278 | — | ||||||||||
Net income attributable to Tanger Factory Outlet Centers, Inc. | 22,969 | 29,390 | 45,807 | 51,726 | |||||||||||
Allocation of earnings to participating securities | (313 | ) | (306 | ) | (576 | ) | (601 | ) | |||||||
Net income available to common shareholders of Tanger Factory Outlet Centers, Inc. | $ | 22,656 | $ | 29,084 | $ | 45,231 | $ | 51,125 | |||||||
Basic earnings per common share: | |||||||||||||||
Net income | $ | 0.24 | $ | 0.31 | $ | 0.48 | $ | 0.54 | |||||||
Diluted earnings per common share: | |||||||||||||||
Net income | $ | 0.24 | $ | 0.31 | $ | 0.48 | $ | 0.54 |
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 | $ | 40.7 | $ | 3.6 | $ | 49.8 | ||||||||||
Columbus | Columbus, OH | 50.0 | % | 355,245 | 43.0 | 2.5 | 42.3 | |||||||||||||
Galveston/Houston | Texas City, TX | 50.0 | % | 352,705 | 24.7 | 2.1 | 39.8 | |||||||||||||
National Harbor | National Harbor, MD | 50.0 | % | 341,156 | 45.2 | 2.5 | 43.3 | |||||||||||||
RioCan Canada (2) | Various | 50.0 | % | 923,469 | 113.7 | 3.4 | 5.1 | |||||||||||||
Total | 2,370,432 | $ | 267.3 | $ | 14.1 | $ | 180.3 |
(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. |
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) | $ | 223,700 | $ | 223,700 | LIBOR + 0.875% | 3.0 | % | 10/28/2022 | 4.3 | |||||||||
2023 Senior unsecured notes | 250,000 | 250,000 | 3.875% | 4.1 | % | 12/1/2023 | 5.4 | |||||||||||
2024 Senior unsecured notes | 250,000 | 250,000 | 3.75 | % | 3.8 | % | 12/1/2024 | 6.4 | ||||||||||
2026 Senior unsecured notes | 350,000 | 350,000 | 3.125 | % | 3.2 | % | 9/1/2026 | 8.2 | ||||||||||
2027 Senior unsecured notes | 300,000 | 300,000 | 3.875 | % | 3.9 | % | 7/15/2027 | 9.0 | ||||||||||
Unsecured term loan | 325,000 | 325,000 | LIBOR + 0.95% | 2.1 | % | 4/13/2021 | 2.8 | |||||||||||
Net debt discounts and debt origination costs | (19,728 | ) | (19,728 | ) | ||||||||||||||
Total net unsecured debt | 1,678,972 | 1,678,972 | 3.4 | % | 6.1 | |||||||||||||
Secured mortgage debt: | ||||||||||||||||||
Atlantic City, NJ | 35,892 | 35,892 | 5.14% - 7.65% | 5.1 | % | 11/15/2021 - 12/8/2026 | 6.4 | |||||||||||
Southaven, MS | 51,400 | 51,400 | LIBOR + 1.80% | 4.2 | % | 4/29/2023 | 4.8 | |||||||||||
Debt premium and debt origination costs | 1,943 | 1,943 | ||||||||||||||||
Total net secured mortgage debt | 89,235 | 89,235 | 4.5 | % | 5.5 | |||||||||||||
Total consolidated debt | 1,768,207 | 1,768,207 | 3.4 | % | 6.1 | |||||||||||||
Unconsolidated JV debt: | ||||||||||||||||||
Charlotte(4) | 100,000 | 50,000 | 4.27 | % | 4.3 | % | 7/1/2028 | 10.0 | ||||||||||
Columbus | 85,000 | 42,500 | LIBOR + 1.65% | 3.7 | % | 11/28/2021 | 3.4 | |||||||||||
Galveston/Houston | 80,000 | 40,000 | LIBOR + 1.65% | 3.7 | % | 7/1/2022 | 4.0 | |||||||||||
National Harbor | 87,000 | 43,500 | LIBOR + 1.65% | 3.7 | % | 11/13/2019 | 1.4 | |||||||||||
RioCan Canada | 9,967 | 4,983 | 5.75 | % | 4.2 | % | 5/10/2020 | 1.9 | ||||||||||
Debt premium and debt origination costs | (1,438 | ) | (718 | ) | ||||||||||||||
Total unconsolidated JV net debt | 360,529 | 180,265 | 3.9 | % | 4.8 | |||||||||||||
Total | $ | 2,128,736 | $ | 1,948,472 | 3.5 | % | 5.9 |
(1) | The effective interest rate includes the impact of discounts and premiums and interest rate swap agreements, as applicable. See page 18 for additional details. |
(2) | Includes applicable extensions available at our option. |
(3) | The Company has unsecured lines of credit that provide for borrowings of up to $600.0 million. The unsecured lines of credit include a $20.0 million liquidity line and a $580.0 million syndicated line. A 15 basis point facility fee is due annually on the entire committed amount of each facility. The syndicated line may be increased up to $1.2 billion through an accordion feature in certain circumstances. |
(4) | In June 2018, the joint venture closed on a $100.0 million mortgage loan with a fixed interest rate of 4.27% and a maturity date of July 2028. The proceeds from the loan were used to pay off the $90.0 million mortgage loan with an interest rate of LIBOR + 1.45% that had an original maturity date of November 2018. The joint venture distributed the incremental net loan proceeds of $9.3 million equally to the partners. |
Total Debt % | Our Share of Debt | End of Period Effective Interest Rate | Average Years to Maturity (1) | ||||||||
Consolidated: | |||||||||||
Fixed (2) | 87 | % | $ | 1,537,065 | 3.4 | % | 6.4 | ||||
Variable | 13 | % | 231,142 | 3.3 | % | 4.4 | |||||
100 | % | 1,768,207 | 3.4 | % | 6.1 | ||||||
Unconsolidated Joint ventures: | |||||||||||
Fixed | 30 | % | $ | 54,912 | 4.3 | % | 9.3 | ||||
Variable | 70 | % | 125,353 | 3.7 | % | 2.9 | |||||
100 | % | 180,265 | 3.9 | % | 4.8 | ||||||
Total: | |||||||||||
Fixed | 82 | % | 1,591,977 | 3.5 | % | 6.6 | |||||
Variable | 18 | % | 356,495 | 3.6 | % | 3.6 | |||||
Total share of debt | 100 | % | $ | 1,948,472 | 3.5 | % | 5.9 |
(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 a weighted average of 1.30% on notional amounts aggregating $365.0 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. In December 2017, we entered into three separate forward starting interest rate swap agreements, effective August 14, 2018 through January 1, 2021 on notional amounts aggregating $150.0 million, which will fix the base LIBOR rate at an average of 2.20%, 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, |
(c) | In March 2018, the consolidated joint venture that owns the Tanger outlet center in Southaven, Mississippi, entered into an interest rate swap, effective March 1, 2018, that fixed the base LIBOR rate at 2.47% on a notional amount of $40.0 million through January 31, 2021. |
Year | Tanger Consolidated Payments | Tanger's Share of Unconsolidated JV Payments | Total Scheduled Payments | ||||||||
2018 | $ | 1,614 | $ | 147 | $ | 1,761 | |||||
2019 | 3,369 | 43,807 | 47,176 | ||||||||
2020 | 3,566 | 4,529 | 8,095 | ||||||||
2021 | 330,793 | 42,500 | 373,293 | ||||||||
2022(2) | 228,136 | 40,000 | 268,136 | ||||||||
2023 | 306,168 | 346 | 306,514 | ||||||||
2024 | 255,140 | 855 | 255,995 | ||||||||
2025 | 1,501 | 892 | 2,393 | ||||||||
2026 | 355,705 | 931 | 356,636 | ||||||||
2027 | 300,000 | 972 | 300,972 | ||||||||
2028 & thereafter | — | 46,004 | 46,004 | ||||||||
$ | 1,785,992 | $ | 180,983 | $ | 1,966,975 | ||||||
Net debt discounts and debt origination costs | (17,785 | ) | (718 | ) | (18,503 | ) | |||||
$ | 1,768,207 | $ | 180,265 | $ | 1,948,472 |
(1) | Includes applicable extensions available at our option. |
(2) | Includes principal balance of $223.7 million outstanding under the Company's unsecured lines of credit. |
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 | 5.18 | 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. |
• | 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. |
• | 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. |
• | 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. |
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net income | $ | 24,290 | $ | 30,947 | $ | 47,975 | $ | 54,461 | ||||||||
Adjusted for: | ||||||||||||||||
Depreciation and amortization of real estate assets - consolidated | 32,062 | 32,383 | 64,604 | 63,238 | ||||||||||||
Depreciation and amortization of real estate assets - unconsolidated joint ventures | 3,325 | 3,550 | 6,554 | 7,388 | ||||||||||||
Gain on sale of assets | — | (6,943 | ) | — | (6,943 | ) | ||||||||||
FFO | 59,677 | 59,937 | 119,133 | 118,144 | ||||||||||||
FFO attributable to noncontrolling interests in other consolidated partnerships | (92 | ) | — | 278 | — | |||||||||||
Allocation of earnings to participating securities | (534 | ) | (528 | ) | (1,011 | ) | (1,040 | ) | ||||||||
FFO available to common shareholders (1) | $ | 59,051 | $ | 59,409 | $ | 118,400 | $ | 117,104 | ||||||||
As further adjusted for: | ||||||||||||||||
Abandoned pre-development costs | — | — | — | 627 | ||||||||||||
Impact of above adjustments to the allocation of earnings to participating securities | — | — | — | (5 | ) | |||||||||||
AFFO available to common shareholders (1) | $ | 59,051 | $ | 59,409 | $ | 118,400 | $ | 117,726 | ||||||||
FFO available to common shareholders per share - diluted (1) | $ | 0.60 | $ | 0.59 | $ | 1.20 | $ | 1.17 | ||||||||
AFFO available to common shareholders per share - diluted (1) | $ | 0.60 | $ | 0.59 | $ | 1.20 | $ | 1.17 | ||||||||
Weighted Average Shares: | ||||||||||||||||
Basic weighted average common shares | 93,298 | 95,025 | 93,470 | 95,217 | ||||||||||||
Effect of outstanding options and restricted common shares | — | 5 | — | 35 | ||||||||||||
Diluted weighted average common shares (for earnings per share computations) | 93,298 | 95,030 | 93,470 | 95,252 | ||||||||||||
Exchangeable operating partnership units | 4,996 | 5,028 | 4,996 | 5,028 | ||||||||||||
Diluted weighted average common shares (for FFO and AFFO per share computations) (1) | 98,294 | 100,058 | 98,466 | 100,280 |
(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. |
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
FFO available to common shareholders | $ | 59,051 | $ | 59,409 | $ | 118,400 | $ | 117,104 | ||||||||
Adjusted for: | ||||||||||||||||
Corporate depreciation excluded above | 632 | 522 | 1,213 | 961 | ||||||||||||
Amortization of finance costs | 749 | 871 | 1,532 | 1,749 | ||||||||||||
Amortization of net debt discount (premium) | 103 | 120 | 204 | 245 | ||||||||||||
Amortization of equity-based compensation | 3,653 | 3,504 | 7,045 | 6,796 | ||||||||||||
Straight line rent adjustment | (1,346 | ) | (1,588 | ) | (3,294 | ) | (3,293 | ) | ||||||||
Market rent adjustment | 689 | 969 | 1,251 | 1,691 | ||||||||||||
2nd generation tenant allowances | (5,400 | ) | (5,836 | ) | (8,326 | ) | (9,215 | ) | ||||||||
Capital improvements | (8,198 | ) | (15,430 | ) | (10,920 | ) | (21,340 | ) | ||||||||
Adjustments from unconsolidated joint ventures | (148 | ) | (619 | ) | (419 | ) | (1,143 | ) | ||||||||
FAD available to common shareholders (1) | $ | 49,785 | $ | 41,922 | $ | 106,686 | $ | 93,555 | ||||||||
Dividends per share | $ | 0.3500 | $ | 0.3425 | $ | 0.6925 | $ | 0.6680 | ||||||||
FFO payout ratio | 58 | % | 58 | % | 58 | % | 57 | % | ||||||||
FAD payout ratio | 69 | % | 82 | % | 64 | % | 72 | % | ||||||||
Diluted weighted average common shares (1) | 98,294 | 100,058 | 98,466 | 100,280 |
(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. |
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net income | $ | 24,290 | $ | 30,947 | $ | 47,975 | $ | 54,461 | ||||||||
Adjusted to exclude: | ||||||||||||||||
Equity in earnings of unconsolidated joint ventures | (2,206 | ) | (2,374 | ) | (4,400 | ) | (4,692 | ) | ||||||||
Interest expense | 16,181 | 16,520 | 31,981 | 33,007 | ||||||||||||
Gain on sale of assets | — | (6,943 | ) | — | (6,943 | ) | ||||||||||
Other non-operating income | (191 | ) | (57 | ) | (400 | ) | (92 | ) | ||||||||
Depreciation and amortization | 32,694 | 32,905 | 65,817 | 64,199 | ||||||||||||
Other non-property expenses | 209 | 309 | 640 | 621 | ||||||||||||
Abandoned pre-development costs | — | — | — | 627 | ||||||||||||
Corporate general and administrative expenses | 10,784 | 11,202 | 21,807 | 22,479 | ||||||||||||
Non-cash adjustments (1) | (638 | ) | (597 | ) | (2,004 | ) | (1,561 | ) | ||||||||
Termination rents | (13 | ) | (1,450 | ) | (1,064 | ) | (2,633 | ) | ||||||||
Portfolio NOI | 81,110 | 80,462 | 160,352 | 159,473 | ||||||||||||
Non-same center NOI (2) | (4,226 | ) | (2,081 | ) | (8,441 | ) | (4,937 | ) | ||||||||
Same Center NOI | $ | 76,884 | $ | 78,381 | $ | 151,911 | $ | 154,536 |
(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 center expansions: | |||||
Fort Worth | October 2017 | Westbrook | May 2017 | Lancaster | September 2017 |
Non-GAAP | |||
Pro Rata Portion Unconsolidated Joint Ventures (1) | |||
Assets | |||
Rental property: | |||
Land | $ | 46,611 | |
Buildings, improvements and fixtures | 248,759 | ||
Construction in progress | 1,497 | ||
296,867 | |||
Accumulated depreciation | (51,831 | ) | |
Total rental property, net | 245,036 | ||
Cash and cash equivalents | 9,176 | ||
Deferred lease costs and other intangibles, net | 5,028 | ||
Prepaids and other assets | 8,027 | ||
Total assets | $ | 267,267 | |
Liabilities and Owners' Equity | |||
Liabilities | |||
Mortgages payable, net | $ | 180,264 | |
Accounts payable and accruals | 6,127 | ||
Total liabilities | 186,391 | ||
Owners' equity | 80,876 | ||
Total liabilities and owners' equity | $ | 267,267 |
(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 $4.1 million as of June 30, 2018 and are being amortized over the various useful lives of the related assets. |
Non-GAAP Pro Rata Portion | |||||||
Noncontrolling Interests | Unconsolidated Joint Ventures | ||||||
Revenues: | |||||||
Base rentals | $ | — | $ | 13,666 | |||
Percentage rentals | — | 1,150 | |||||
Expense reimbursements | — | 8,680 | |||||
Other income | — | 205 | |||||
Total revenues | — | 23,701 | |||||
Expense: | |||||||
Property operating | — | 9,443 | |||||
General and administrative | — | 126 | |||||
Depreciation and amortization | — | 6,553 | |||||
Total expenses | — | 16,122 | |||||
Operating income | — | 7,579 | |||||
Other income (expense): | |||||||
Interest expense | — | (3,232 | ) | ||||
Other nonoperating income | 278 | 53 | |||||
Net income | $ | 278 | $ | 4,400 |
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 |