Tanger Outlets Report Third Quarter 2011 Results

Company Release - 10/25/2011 16:05

Funds From Operations Up 22.0%
Same Center Net Operating Income Increases 5.0% for the Quarter

GREENSBORO, N.C., Oct. 25, 2011 (GLOBE NEWSWIRE) -- Tanger Factory Outlet Centers, Inc. (NYSE:SKT) today reported its financial results for the quarter and nine months ended September 30, 2011. Funds from operations ("FFO") available to common shareholders, a widely accepted supplemental measure of REIT performance, increased 22.0% for the three months ended September 30, 2011 to $37.9 million, or $0.39 per share, as compared to FFO of $31.1 million, or $0.34 per share for the three months ended September 30, 2010. For the nine months ended September 30, 2011, FFO increased 18.1% to $97.1 million, or $1.02 per share, as compared to FFO of $82.2 million, or $0.89 per share, for the nine months ended September 30, 2010.

"Our operating results continue to be very strong through the third quarter. Driven by our ability to achieve substantial rental rate increases, same center net operating income was up 5.0% for the quarter and 4.9% for the first nine months of the year," commented Steven B. Tanger, President and Chief Executive Officer. "We have had a productive year so far, integrating four newly acquired centers into our portfolio and negotiating numerous joint ventures for future growth," he added.

Third Quarter Highlights

• Broke ground on a joint venture project for a new Tanger Outlet Center south of Houston, Texas
• Completed the acquisition of The Outlets at Hershey in Hershey, Pennsylvania
• 27.8% debt-to-total market capitalization ratio, compared to 21.2% last year
• 4.11 times interest coverage ratio for the three months ended September 30, 2011
• 5.0% increase in same center net operating income for consolidated properties during the quarter compared to 3.6% last year
• 4.9% increase in same center net operating income for consolidated properties during the nine months compared to 2.4% last year
• 24.6% blended increase in average base rental rates on renewed and released space for consolidated properties during the first nine months, compared to 14.6% last year
• 98.3% occupancy rate for consolidated properties compared to 98.1% last year
• Reported tenant comparable sales for consolidated properties increased by 3.5% to $362 per square foot for the rolling twelve months ended September 30, 2011

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