Tuesday, February 14, 2012

Tanger Reports Year End Results for 2011

Steven B. Tanger

Company Release - 02/14/2012 16:05
Funds From Operations Increases 37.6% for the Quarter and 22.5% for the Year

Same Center NOI Increases 6.2% in the Fourth Quarter

GREENSBORO, N.C., Feb. 14, 2012 (GLOBE NEWSWIRE) -- Tanger Factory Outlet Centers, Inc.(NYSE:SKT) today reported its financial results for the quarter and year ended December 31, 2011. Funds from operations available to common shareholders ("FFO"), a widely accepted supplemental measure of REIT performance, increased 37.6% for the three months ended December 31, 2011, to $41.3 million, or $0.42 per share as compared to FFO of $30.1 million, or $0.32 per share for the three months ended December 31, 2010. For the year ended December 31, 2011, FFO increased 22.5% to $138.5 million, or $1.44 per share as compared to FFO of $113.1 million, or $1.22 per share for the year ended December 31, 2010.

"We had a tremendously busy and successful year in 2011. Our stable, well diversified portfolio of outlet centers produced robust internal growth, while our new developments and acquisitions added incremental FFO throughout the year," commented Steven B. Tanger, President and Chief Executive Officer. "Through it all, we maintained our conservative balance sheet, benefiting from a secondary offering of 4.6 million common shares and a recast of our unsecured revolving credit facilities. Our dividend continues to be well covered by our operating cash flow," he added.

Highlights of Achievements for 2011
  • 6.2% increase in same center net operating income for the fourth quarter and 5.3% for the year
  • 23.4% blended increase in average base rental rates on renewed and released space for consolidated properties, compared to 13.8% last year
  • 98.8% occupancy rate for consolidated properties
  • 26.3% debt-to-total market capitalization ratio
  • 4.07 times interest coverage ratio
  • 3.5% increase in reported same-space tenant sales for the rolling twelve months ended December 31, 2011 to $366 per square foot, 4.9% increase for the 4th quarter of 2011
  • 26.8% increase in total market capitalization to $3.9 billion including $1.0 billion of debt outstanding
  • Opened the company's redeveloped Hilton Head I outlet center in Bluffton, SC on March 31, 2011
  • Dividend increase approved by Board of Directors on April 7, 2011 to raise the quarterly common share cash dividend 3.2% from $0.19375 to $0.20 per share, $0.80 per share annualized, representing the 18th consecutive year of increased dividends
  • Closed on a public offering of 4.6 million common shares at $25.662 per share; net proceeds to the company of $117.4 million at closing on July 6, 2011
  • Completed $390.3 million in acquisitions, including Prime Outlets Jeffersonville (Ohio) on June 28, 2011, Atlantic City Outlets The Walk (New Jersey) and Ocean City Factory Outlets (Maryland) on July 15, 2011, and The Outlets at Hershey (Pennsylvania) on September 30, 2011
  • Received an upgrade in outlook from Standard & Poor's from Stable to Positive
  • Broke ground on a joint venture project for a new Tanger Outlet Center south of Houston, Texas on August 30, 2011
  • Amended unsecured revolving lines of credit on November 10, 2011, increasing total capacity to $520 million from $400 million, reducing the LIBOR spread and facility fee by a combined 80 basis points and extending the maturity through November 2015
  • Completed the acquisition of the Cookstown Outlet Mall (Ontario, Canada) through existing co-ownership agreement with RioCan Real Estate Investment Trust on December 9, 2011
  • Added significant talent to the company's Board of Directors, with the addition of Donald G. Drapkin as a Director; and to our management team with the hire of Chad D. Perry, Executive Vice President and General Counsel

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