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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Tanger Inc | NYSE:SKT | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.85 | -3.00% | 27.50 | 28.237 | 27.06 | 27.91 | 964,803 | 01:00:00 |
|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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North Carolina (Tanger Factory Outlet Centers, Inc.)
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56-1815473
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North Carolina (Tanger Properties Limited Partnership)
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56-1822494
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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|
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3200 Northline Avenue, Suite 360, Greensboro, NC 27408
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(Address of principal executive offices)
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|
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(336) 292-3010
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(Registrant's telephone number, including area code)
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Tanger Factory Outlet Centers, Inc.
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Yes
x
No
o
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Tanger Properties Limited Partnership
|
Yes
x
No
o
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Tanger Factory Outlet Centers, Inc.
|
Yes
x
No
o
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Tanger Properties Limited Partnership
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Yes
x
No
o
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Tanger Factory Outlet Centers, Inc.
|
||
Large accelerated filer
x
|
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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(Do not check if a smaller reporting company)
|
|
Emerging growth company
o
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Tanger Properties Limited Partnership
|
||
Large accelerated filer
o
|
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Accelerated filer
o
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Non-accelerated filer
x
|
|
Smaller reporting company
o
|
(Do not check if a smaller reporting company)
|
|
Emerging growth company
o
|
Tanger Factory Outlet Centers, Inc.
|
o
|
Tanger Properties Limited Partnership
|
o
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Tanger Factory Outlet Centers, Inc.
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Yes
o
No
x
|
Tanger Properties Limited Partnership
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Yes
o
No
x
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•
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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;
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•
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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
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•
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creating time and cost efficiencies through the preparation of one combined report instead of two separate reports.
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•
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Debt of the Company and the Operating Partnership;
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•
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Shareholders' Equity, if applicable, and Partners' Equity;
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•
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Earnings Per Share and Earnings Per Unit;
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•
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Accumulated Other Comprehensive Income of the Company and the Operating Partnership;
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•
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Liquidity and Capital Resources in the Management's Discussion and Analysis of Financial Condition and Results of Operations.
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Page Number
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Part I. Financial Information
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Item 1.
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FINANCIAL STATEMENTS OF TANGER FACTORY OUTLET CENTERS, INC.
(Unaudited)
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Consolidated Balance Sheets - as of September 30, 2017 and December 31, 2016
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Consolidated Statements of Operations - for the three and nine months ended September 30, 2017 and 2016
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Consolidated Statements of Comprehensive Income - for the three and nine months ended September 30, 2017 and 2016
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Consolidated Statements of Shareholders' Equity - for the nine months ended September 30, 2017 and 2016
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Consolidated Statements of Cash Flows - for the nine months ended September 30, 2017 and 2016
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FINANCIAL STATEMENTS OF TANGER PROPERTIES LIMITED PARTNERSHIP
(Unaudited)
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Consolidated Balance Sheets - as of September 30, 2017 and December 31, 2016
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Consolidated Statements of Operations - for the three and nine months ended September 30, 2017 and 2016
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Consolidated Statements of Comprehensive Income - for the three and nine months ended September 30, 2017 and 2016
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Consolidated Statements of Equity - for the nine months ended September 30, 2017 and 2016
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Consolidated Statements of Cash Flows - for the nine months ended September 30, 2017 and 2016
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Condensed Notes to Consolidated Financial Statements of Tanger Factory Outlet Centers, Inc. and Tanger Properties Limited Partnership
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
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Item 3. Quantitative and Qualitative Disclosures about Market Risk
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Item 4. Controls and Procedures (Tanger Factory Outlet Centers, Inc. and Tanger Properties Limited Partnership)
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Part II. Other Information
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Item 1. Legal Proceedings
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Item 1A. Risk Factors
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
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Item 4. Mine Safety Disclosure
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Item 6. Exhibits
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Signatures
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September 30, 2017
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December 31, 2016
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||||
Assets
|
|
|
|
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|
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Rental property:
|
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|
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Land
|
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$
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268,821
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$
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272,153
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Buildings, improvements and fixtures
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2,694,549
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|
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2,647,477
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||
Construction in progress
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87,762
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46,277
|
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||
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3,051,132
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2,965,907
|
|
||
Accumulated depreciation
|
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(875,121
|
)
|
|
(814,583
|
)
|
||
Total rental property, net
|
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2,176,011
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2,151,324
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Cash and cash equivalents
|
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8,773
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12,222
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Investments in unconsolidated joint ventures
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125,819
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128,104
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Deferred lease costs and other intangibles, net
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135,768
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151,579
|
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Prepaids and other assets
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95,075
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|
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82,985
|
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||
Total assets
|
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$
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2,541,446
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$
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2,526,214
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Liabilities and Equity
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||||
Liabilities
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Debt:
|
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|
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|
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Senior, unsecured notes, net
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$
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1,134,181
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$
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1,135,309
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Unsecured term loan, net
|
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323,011
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322,410
|
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||
Mortgages payable, net
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170,776
|
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172,145
|
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||
Unsecured lines of credit, net
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146,013
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|
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58,002
|
|
||
Total debt
|
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1,773,981
|
|
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1,687,866
|
|
||
Accounts payable and accrued expenses
|
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84,091
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78,143
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Other liabilities
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74,339
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|
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54,764
|
|
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Total liabilities
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1,932,411
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1,820,773
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Commitments and contingencies
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Equity
|
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Tanger Factory Outlet Centers, Inc.:
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Common shares, $.01 par value, 300,000,000 shares authorized, 94,528,188 and 96,095,891 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively
|
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945
|
|
|
961
|
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||
Paid in capital
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781,020
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820,251
|
|
||
Accumulated distributions in excess of net income
|
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(183,975
|
)
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(122,701
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)
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Accumulated other comprehensive loss
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(19,713
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)
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(28,295
|
)
|
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Equity attributable to Tanger Factory Outlet Centers, Inc.
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578,277
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670,216
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Equity attributable to noncontrolling interests:
|
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|
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||||
Noncontrolling interests in Operating Partnership
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30,758
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35,066
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Noncontrolling interests in other consolidated partnerships
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—
|
|
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159
|
|
||
Total equity
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609,035
|
|
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705,441
|
|
||
Total liabilities and equity
|
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$
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2,541,446
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$
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2,526,214
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|
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Three months ended September 30,
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Nine months ended September 30,
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||||||||||||
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2017
|
|
2016
|
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2017
|
|
2016
|
||||||||
Revenues:
|
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|
|
|
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|
|
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|||||||
Base rentals
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$
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80,349
|
|
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$
|
79,569
|
|
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$
|
241,467
|
|
|
$
|
227,195
|
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Percentage rentals
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3,138
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|
|
2,995
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|
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6,798
|
|
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7,471
|
|
||||
Expense reimbursements
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34,180
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|
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33,125
|
|
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104,801
|
|
|
97,121
|
|
||||
Management, leasing and other services
|
|
588
|
|
|
806
|
|
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1,776
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|
|
3,259
|
|
||||
Other income
|
|
2,510
|
|
|
2,642
|
|
|
6,905
|
|
|
6,229
|
|
||||
Total revenues
|
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120,765
|
|
|
119,137
|
|
|
361,747
|
|
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341,275
|
|
||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||
Property operating
|
|
37,571
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|
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37,442
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|
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115,074
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|
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110,328
|
|
||||
General and administrative
|
|
10,934
|
|
|
12,128
|
|
|
33,846
|
|
|
35,368
|
|
||||
Acquisition costs
|
|
—
|
|
|
487
|
|
|
—
|
|
|
487
|
|
||||
Abandoned pre-development costs
|
|
(99
|
)
|
|
—
|
|
|
528
|
|
|
—
|
|
||||
Depreciation and amortization
|
|
30,976
|
|
|
29,205
|
|
|
95,175
|
|
|
82,078
|
|
||||
Total expenses
|
|
79,382
|
|
|
79,262
|
|
|
244,623
|
|
|
228,261
|
|
||||
Operating income
|
|
41,383
|
|
|
39,875
|
|
|
117,124
|
|
|
113,014
|
|
||||
Other income (expense):
|
|
|
|
|
|
|
|
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||||||||
Interest expense
|
|
(16,489
|
)
|
|
(15,516
|
)
|
|
(49,496
|
)
|
|
(44,200
|
)
|
||||
Loss on early extinguishment of debt
|
|
(35,626
|
)
|
|
—
|
|
|
(35,626
|
)
|
|
—
|
|
||||
Gain on sale of assets
|
|
—
|
|
|
1,418
|
|
|
6,943
|
|
|
6,305
|
|
||||
Gain on previously held interest in acquired joint venture
|
|
—
|
|
|
46,258
|
|
|
—
|
|
|
95,516
|
|
||||
Other non-operating income (expense)
|
|
591
|
|
|
24
|
|
|
683
|
|
|
378
|
|
||||
Income (loss) before equity in earnings (losses) of unconsolidated joint ventures
|
|
(10,141
|
)
|
|
72,059
|
|
|
39,628
|
|
|
171,013
|
|
||||
Equity in earnings (losses) of unconsolidated joint ventures
|
|
(5,893
|
)
|
|
715
|
|
|
(1,201
|
)
|
|
7,680
|
|
||||
Net income (loss)
|
|
(16,034
|
)
|
|
72,774
|
|
|
38,427
|
|
|
178,693
|
|
||||
Noncontrolling interests in Operating Partnership
|
|
815
|
|
|
(3,668
|
)
|
|
(1,920
|
)
|
|
(9,009
|
)
|
||||
Noncontrolling interests in other consolidated partnerships
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(13
|
)
|
||||
Net income (loss) attributable to Tanger Factory Outlet Centers, Inc.
|
|
$
|
(15,219
|
)
|
|
$
|
69,104
|
|
|
$
|
36,507
|
|
|
$
|
169,671
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per common share:
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
|
$
|
(0.17
|
)
|
|
$
|
0.72
|
|
|
$
|
0.38
|
|
|
$
|
1.77
|
|
Diluted earnings per common share:
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
|
$
|
(0.17
|
)
|
|
$
|
0.72
|
|
|
$
|
0.38
|
|
|
$
|
1.76
|
|
|
|
|
|
|
|
|
|
|
||||||||
Dividends declared per common share
|
|
$
|
0.3425
|
|
|
$
|
0.3250
|
|
|
$
|
1.01
|
|
|
$
|
0.9350
|
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income (loss)
|
|
$
|
(16,034
|
)
|
|
$
|
72,774
|
|
|
$
|
38,427
|
|
|
$
|
178,693
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
|
4,737
|
|
|
(1,731
|
)
|
|
8,821
|
|
|
6,970
|
|
||||
Change in fair value of cash flow hedges
|
|
39
|
|
|
2,228
|
|
|
217
|
|
|
(1,601
|
)
|
||||
Other comprehensive income
|
|
4,776
|
|
|
497
|
|
|
9,038
|
|
|
5,369
|
|
||||
Comprehensive income (loss)
|
|
(11,258
|
)
|
|
73,271
|
|
|
47,465
|
|
|
184,062
|
|
||||
Comprehensive (income) loss attributable to noncontrolling interests
|
|
573
|
|
|
(3,695
|
)
|
|
(2,376
|
)
|
|
(9,294
|
)
|
||||
Comprehensive income (loss) attributable to Tanger Factory Outlet Centers, Inc.
|
|
$
|
(10,685
|
)
|
|
$
|
69,576
|
|
|
$
|
45,089
|
|
|
$
|
174,768
|
|
|
|
Common shares
|
Paid in capital
|
Accumulated distributions in excess of earnings
|
Accumulated other comprehensive loss
|
Equity attributable to Tanger Factory Outlet Centers, Inc.
|
Noncontrolling interests in Operating Partnership
|
Noncontrolling
interests in
other consolidated partnerships
|
Total
equity
|
||||||||||||||||
Balance,
December 31, 2015
|
|
$
|
959
|
|
$
|
806,379
|
|
$
|
(195,486
|
)
|
$
|
(36,715
|
)
|
$
|
575,137
|
|
$
|
30,309
|
|
$
|
586
|
|
$
|
606,032
|
|
Net income
|
|
—
|
|
—
|
|
169,671
|
|
—
|
|
169,671
|
|
9,009
|
|
13
|
|
178,693
|
|
||||||||
Other comprehensive income
|
|
—
|
|
—
|
|
—
|
|
5,097
|
|
5,097
|
|
272
|
|
—
|
|
5,369
|
|
||||||||
Compensation under Incentive Award Plan
|
|
—
|
|
12,556
|
|
—
|
|
—
|
|
12,556
|
|
—
|
|
—
|
|
12,556
|
|
||||||||
Issuance of 57,700 common shares upon exercise of options
|
|
—
|
|
1,693
|
|
—
|
|
—
|
|
1,693
|
|
—
|
|
—
|
|
1,693
|
|
||||||||
Grant of 173,124 restricted common share awards, net of forfeitures
|
|
2
|
|
(2
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||
Issuance of 24,040 deferred shares
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||
Withholding of 66,427 common shares for employee income taxes
|
|
—
|
|
(2,164
|
)
|
—
|
|
—
|
|
(2,164
|
)
|
—
|
|
—
|
|
(2,164
|
)
|
||||||||
Contributions from noncontrolling interests
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
35
|
|
35
|
|
||||||||
Adjustment for noncontrolling interests in Operating Partnership
|
|
—
|
|
(385
|
)
|
—
|
|
—
|
|
(385
|
)
|
385
|
|
—
|
|
—
|
|
||||||||
Adjustment for noncontrolling interests in other consolidated partnerships
|
|
—
|
|
4
|
|
—
|
|
—
|
|
4
|
|
—
|
|
(4
|
)
|
—
|
|
||||||||
Acquisition of noncontrolling interest in other consolidated partnership
|
|
—
|
|
(1,617
|
)
|
—
|
|
—
|
|
(1,617
|
)
|
—
|
|
(325
|
)
|
(1,942
|
)
|
||||||||
Common dividends ($.935 per share)
|
|
—
|
|
—
|
|
(89,750
|
)
|
—
|
|
(89,750
|
)
|
—
|
|
—
|
|
(89,750
|
)
|
||||||||
Distributions to noncontrolling interests
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(4,725
|
)
|
(145
|
)
|
(4,870
|
)
|
||||||||
Balance,
September 30, 2016
|
|
$
|
961
|
|
$
|
816,464
|
|
$
|
(115,565
|
)
|
$
|
(31,618
|
)
|
$
|
670,242
|
|
$
|
35,250
|
|
$
|
160
|
|
$
|
705,652
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
|
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
TANGER FACTORY OUTLET CENTERS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(In thousands, except share and per share data, unaudited)
|
|||||||||||||||||||||||||
|
|
Common shares
|
Paid in capital
|
Accumulated distributions in excess of earnings
|
Accumulated other comprehensive loss
|
Equity attributable to Tanger Factory Outlet Centers, Inc.
|
Noncontrolling interests in Operating Partnership
|
Noncontrolling
interests in
other consolidated partnerships
|
Total
equity
|
||||||||||||||||
Balance, December 31, 2016
|
|
$
|
961
|
|
$
|
820,251
|
|
$
|
(122,701
|
)
|
$
|
(28,295
|
)
|
$
|
670,216
|
|
$
|
35,066
|
|
$
|
159
|
|
$
|
705,441
|
|
Net income
|
|
—
|
|
—
|
|
36,507
|
|
—
|
|
36,507
|
|
1,920
|
|
—
|
|
38,427
|
|
||||||||
Other comprehensive income
|
|
—
|
|
—
|
|
—
|
|
8,582
|
|
8,582
|
|
456
|
|
—
|
|
9,038
|
|
||||||||
Compensation under Incentive Award Plan
|
|
—
|
|
10,891
|
|
—
|
|
—
|
|
10,891
|
|
—
|
|
—
|
|
10,891
|
|
||||||||
Issuance of 1,800 common shares upon exercise of options
|
|
—
|
|
54
|
|
—
|
|
—
|
|
54
|
|
—
|
|
—
|
|
54
|
|
||||||||
Grant of 411,968 restricted common share awards, net of forfeitures
|
|
4
|
|
(4
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||
Repurchase of 1,911,585 common shares, including transaction costs
|
|
(19
|
)
|
(49,343
|
)
|
—
|
|
—
|
|
(49,362
|
)
|
—
|
|
—
|
|
(49,362
|
)
|
||||||||
Withholding of
69,886 common shares for employee income taxes |
|
(1
|
)
|
(2,435
|
)
|
—
|
|
—
|
|
(2,436
|
)
|
—
|
|
—
|
|
(2,436
|
)
|
||||||||
Adjustment for noncontrolling interests in Operating Partnership
|
|
—
|
|
1,606
|
|
—
|
|
—
|
|
1,606
|
|
(1,606
|
)
|
—
|
|
—
|
|
||||||||
Acquisition of noncontrolling interest in other consolidated partnership
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(159
|
)
|
(159
|
)
|
||||||||
Common dividends ($1.01 per share)
|
|
—
|
|
—
|
|
(97,781
|
)
|
—
|
|
(97,781
|
)
|
—
|
|
—
|
|
(97,781
|
)
|
||||||||
Distributions to noncontrolling interests
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(5,078
|
)
|
—
|
|
(5,078
|
)
|
||||||||
Balance,
September 30, 2017
|
|
$
|
945
|
|
$
|
781,020
|
|
$
|
(183,975
|
)
|
$
|
(19,713
|
)
|
$
|
578,277
|
|
$
|
30,758
|
|
$
|
—
|
|
$
|
609,035
|
|
|
|
Nine months ended September 30,
|
||||||
|
|
2017
|
|
2016
|
||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|||
Net income
|
|
$
|
38,427
|
|
|
$
|
178,693
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation and amortization
|
|
95,175
|
|
|
82,078
|
|
||
Amortization of deferred financing costs
|
|
2,640
|
|
|
2,350
|
|
||
Gain on sale of assets
|
|
(6,943
|
)
|
|
(6,305
|
)
|
||
Gain on previously held interest in acquired joint venture
|
|
—
|
|
|
(95,516
|
)
|
||
Loss on early extinguishment of debt
|
|
35,626
|
|
|
—
|
|
||
Equity in (earnings) losses of unconsolidated joint ventures
|
|
1,201
|
|
|
(7,680
|
)
|
||
Equity-based compensation expense
|
|
10,114
|
|
|
11,815
|
|
||
Amortization of debt (premiums) and discounts, net
|
|
363
|
|
|
1,160
|
|
||
Amortization (accretion) of market rent rate adjustments, net
|
|
2,107
|
|
|
2,087
|
|
||
Straight-line rent adjustments
|
|
(4,749
|
)
|
|
(5,092
|
)
|
||
Distributions of cumulative earnings from unconsolidated joint ventures
|
|
8,128
|
|
|
10,571
|
|
||
Changes in other assets and liabilities:
|
|
|
|
|
||||
Other assets
|
|
(1,131
|
)
|
|
1,093
|
|
||
Accounts payable and accrued expenses
|
|
653
|
|
|
2,512
|
|
||
Net cash provided by operating activities
|
|
181,611
|
|
|
177,766
|
|
||
INVESTING ACTIVITIES
|
|
|
|
|
||||
Additions to rental property
|
|
(132,612
|
)
|
|
(112,213
|
)
|
||
Acquisitions of interests in unconsolidated joint ventures, net of cash acquired
|
|
—
|
|
|
(45,219
|
)
|
||
Additions to investments in unconsolidated joint ventures
|
|
(4,033
|
)
|
|
(27,851
|
)
|
||
Net proceeds from sale of assets
|
|
39,213
|
|
|
28,706
|
|
||
Change in restricted cash
|
|
—
|
|
|
118,370
|
|
||
Additions to non-real estate assets
|
|
(8,384
|
)
|
|
(8,982
|
)
|
||
Distributions in excess of cumulative earnings from unconsolidated joint ventures
|
|
16,019
|
|
|
14,193
|
|
||
Additions to deferred lease costs
|
|
(4,218
|
)
|
|
(5,273
|
)
|
||
Other investing activities
|
|
4,963
|
|
|
(1,221
|
)
|
||
Net cash used in investing activities
|
|
(89,052
|
)
|
|
(39,490
|
)
|
||
FINANCING ACTIVITIES
|
|
|
|
|
||||
Cash dividends paid
|
|
(97,781
|
)
|
|
(109,879
|
)
|
||
Distributions to noncontrolling interests in Operating Partnership
|
|
(5,078
|
)
|
|
(5,786
|
)
|
||
Proceeds from revolving credit facility
|
|
543,866
|
|
|
733,450
|
|
||
Repayments of revolving credit facility
|
|
(456,666
|
)
|
|
(727,750
|
)
|
||
Proceeds from notes, mortgages and loans
|
|
299,460
|
|
|
338,270
|
|
||
Repayments of notes, mortgages and loans
|
|
(302,240
|
)
|
|
(329,603
|
)
|
||
Payment of make-whole premium related to early extinguishment of debt
|
|
(34,143
|
)
|
|
—
|
|
||
Repayment of deferred financing obligation
|
|
—
|
|
|
(28,388
|
)
|
||
Repurchase of common shares, including transaction costs
|
|
(49,362
|
)
|
|
—
|
|
||
Employee income taxes paid related to shares withheld upon vesting of equity awards
|
|
(2,436
|
)
|
|
(2,164
|
)
|
||
Additions to deferred financing costs
|
|
(2,900
|
)
|
|
(4,243
|
)
|
||
Proceeds from exercise of options
|
|
54
|
|
|
1,693
|
|
||
Proceeds from other financing activities
|
|
12,054
|
|
|
35
|
|
||
Payment for other financing activities
|
|
(782
|
)
|
|
(99
|
)
|
||
Net cash used in financing activities
|
|
(95,954
|
)
|
|
(134,464
|
)
|
||
Effect of foreign currency rate changes on cash and cash equivalents
|
|
(54
|
)
|
|
532
|
|
||
Net increase (decrease) in cash and cash equivalents
|
|
(3,449
|
)
|
|
4,344
|
|
||
Cash and cash equivalents, beginning of period
|
|
12,222
|
|
|
21,558
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
8,773
|
|
|
$
|
25,902
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Assets
|
|
|
|
|
|
|
||
Rental property:
|
|
|
|
|
|
|
||
Land
|
|
$
|
268,821
|
|
|
$
|
272,153
|
|
Buildings, improvements and fixtures
|
|
2,694,549
|
|
|
2,647,477
|
|
||
Construction in progress
|
|
87,762
|
|
|
46,277
|
|
||
|
|
3,051,132
|
|
|
2,965,907
|
|
||
Accumulated depreciation
|
|
(875,121
|
)
|
|
(814,583
|
)
|
||
Total rental property, net
|
|
2,176,011
|
|
|
2,151,324
|
|
||
Cash and cash equivalents
|
|
8,669
|
|
|
12,199
|
|
||
Investments in unconsolidated joint ventures
|
|
125,819
|
|
|
128,104
|
|
||
Deferred lease costs and other intangibles, net
|
|
135,768
|
|
|
151,579
|
|
||
Prepaids and other assets
|
|
94,550
|
|
|
82,481
|
|
||
Total assets
|
|
$
|
2,540,817
|
|
|
$
|
2,525,687
|
|
Liabilities and Equity
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
||||
Debt:
|
|
|
|
|
||||
Senior, unsecured notes, net
|
|
$
|
1,134,181
|
|
|
$
|
1,135,309
|
|
Unsecured term loan, net
|
|
323,011
|
|
|
322,410
|
|
||
Mortgages payable, net
|
|
170,776
|
|
|
172,145
|
|
||
Unsecured lines of credit, net
|
|
146,013
|
|
|
58,002
|
|
||
Total debt
|
|
1,773,981
|
|
|
1,687,866
|
|
||
Accounts payable and accrued expenses
|
|
83,462
|
|
|
77,616
|
|
||
Other liabilities
|
|
74,339
|
|
|
54,764
|
|
||
Total liabilities
|
|
1,931,782
|
|
|
1,820,246
|
|
||
Commitments and contingencies
|
|
|
|
|
|
|
||
Equity
|
|
|
|
|
||||
Partners' Equity:
|
|
|
|
|
||||
General partner, 1,000,000 units outstanding at September 30, 2017 and December 31, 2016
|
|
5,854
|
|
|
6,485
|
|
||
Limited partners, 5,027,781 and 5,027,781 Class A common units, and 93,528,188 and 95,095,891 Class B common units outstanding at September 30, 2017 and December 31, 2016, respectively
|
|
623,977
|
|
|
728,631
|
|
||
Accumulated other comprehensive loss
|
|
(20,796
|
)
|
|
(29,834
|
)
|
||
Total partners' equity
|
|
609,035
|
|
|
705,282
|
|
||
Noncontrolling interests in consolidated partnerships
|
|
—
|
|
|
159
|
|
||
Total equity
|
|
609,035
|
|
|
705,441
|
|
||
Total liabilities and equity
|
|
$
|
2,540,817
|
|
|
$
|
2,525,687
|
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|||||||
Base rentals
|
|
$
|
80,349
|
|
|
$
|
79,569
|
|
|
$
|
241,467
|
|
|
$
|
227,195
|
|
Percentage rentals
|
|
3,138
|
|
|
2,995
|
|
|
6,798
|
|
|
7,471
|
|
||||
Expense reimbursements
|
|
34,180
|
|
|
33,125
|
|
|
104,801
|
|
|
97,121
|
|
||||
Management, leasing and other services
|
|
588
|
|
|
806
|
|
|
1,776
|
|
|
3,259
|
|
||||
Other income
|
|
2,510
|
|
|
2,642
|
|
|
6,905
|
|
|
6,229
|
|
||||
Total revenues
|
|
120,765
|
|
|
119,137
|
|
|
361,747
|
|
|
341,275
|
|
||||
Expenses:
|
|
|
|
|
|
|
|
|
||||||||
Property operating
|
|
37,571
|
|
|
37,442
|
|
|
115,074
|
|
|
110,328
|
|
||||
General and administrative
|
|
10,934
|
|
|
12,128
|
|
|
33,846
|
|
|
35,368
|
|
||||
Acquisition costs
|
|
—
|
|
|
487
|
|
|
—
|
|
|
487
|
|
||||
Abandoned pre-development costs
|
|
(99
|
)
|
|
—
|
|
|
528
|
|
|
—
|
|
||||
Depreciation and amortization
|
|
30,976
|
|
|
29,205
|
|
|
95,175
|
|
|
82,078
|
|
||||
Total expenses
|
|
79,382
|
|
|
79,262
|
|
|
244,623
|
|
|
228,261
|
|
||||
Operating income
|
|
41,383
|
|
|
39,875
|
|
|
117,124
|
|
|
113,014
|
|
||||
Other income (expense):
|
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
|
(16,489
|
)
|
|
(15,516
|
)
|
|
(49,496
|
)
|
|
(44,200
|
)
|
||||
Loss on early extinguishment of debt
|
|
(35,626
|
)
|
|
—
|
|
|
(35,626
|
)
|
|
—
|
|
||||
Gain on sale of assets
|
|
—
|
|
|
1,418
|
|
|
6,943
|
|
|
6,305
|
|
||||
Gain on previously held interest in acquired joint venture
|
|
—
|
|
|
46,258
|
|
|
—
|
|
|
95,516
|
|
||||
Other non-operating income (expense)
|
|
591
|
|
|
24
|
|
|
683
|
|
|
378
|
|
||||
Income (loss) before equity in earnings (losses) of unconsolidated joint ventures
|
|
(10,141
|
)
|
|
72,059
|
|
|
39,628
|
|
|
171,013
|
|
||||
Equity in earnings (losses) of unconsolidated joint ventures
|
|
(5,893
|
)
|
|
715
|
|
|
(1,201
|
)
|
|
7,680
|
|
||||
Net income (loss)
|
|
(16,034
|
)
|
|
72,774
|
|
|
38,427
|
|
|
178,693
|
|
||||
Noncontrolling interests in consolidated partnerships
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(13
|
)
|
||||
Net income (loss) available to partners
|
|
(16,034
|
)
|
|
72,772
|
|
|
38,427
|
|
|
178,680
|
|
||||
Net income (loss) available to limited partners
|
|
(15,874
|
)
|
|
72,052
|
|
|
38,048
|
|
|
176,912
|
|
||||
Net income (loss) available to general partner
|
|
$
|
(160
|
)
|
|
$
|
720
|
|
|
$
|
379
|
|
|
$
|
1,768
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per common unit:
|
|
|
|
|
|
|
|
|
|
|||||||
Net income (loss)
|
|
$
|
(0.17
|
)
|
|
$
|
0.72
|
|
|
$
|
0.38
|
|
|
$
|
1.77
|
|
Diluted earnings per common unit:
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
|
$
|
(0.17
|
)
|
|
$
|
0.72
|
|
|
$
|
0.38
|
|
|
$
|
1.76
|
|
|
|
|
|
|
|
|
|
|
||||||||
Distribution declared per common unit
|
|
$
|
0.3425
|
|
|
$
|
0.3250
|
|
|
$
|
1.01
|
|
|
$
|
0.9350
|
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income (loss)
|
|
$
|
(16,034
|
)
|
|
$
|
72,774
|
|
|
$
|
38,427
|
|
|
$
|
178,693
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
|
4,737
|
|
|
(1,731
|
)
|
|
8,821
|
|
|
6,970
|
|
||||
Changes in fair value of cash flow hedges
|
|
39
|
|
|
2,228
|
|
|
217
|
|
|
(1,601
|
)
|
||||
Other comprehensive income
|
|
4,776
|
|
|
497
|
|
|
9,038
|
|
|
5,369
|
|
||||
Comprehensive income (loss)
|
|
(11,258
|
)
|
|
73,271
|
|
|
47,465
|
|
|
184,062
|
|
||||
Comprehensive income attributable to noncontrolling interests in consolidated partnerships
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(13
|
)
|
||||
Comprehensive income (loss) attributable to the Operating Partnership
|
|
$
|
(11,258
|
)
|
|
$
|
73,269
|
|
|
$
|
47,465
|
|
|
$
|
184,049
|
|
|
|
General partner
|
Limited partners
|
Accumulated other comprehensive loss
|
Total partners' equity
|
Noncontrolling interests in consolidated partnerships
|
Total equity
|
||||||||||||
Balance, December 31, 2015
|
|
$
|
5,726
|
|
$
|
638,422
|
|
$
|
(38,702
|
)
|
$
|
605,446
|
|
$
|
586
|
|
$
|
606,032
|
|
Net income
|
|
1,768
|
|
176,912
|
|
—
|
|
178,680
|
|
13
|
|
178,693
|
|
||||||
Other comprehensive income
|
|
—
|
|
—
|
|
5,369
|
|
5,369
|
|
—
|
|
5,369
|
|
||||||
Compensation under Incentive Award Plan
|
|
—
|
|
12,556
|
|
—
|
|
12,556
|
|
—
|
|
12,556
|
|
||||||
Issuance of 57,700 common units upon exercise of options
|
|
—
|
|
1,693
|
|
—
|
|
1,693
|
|
—
|
|
1,693
|
|
||||||
Grant of 173,124 restricted common share awards by the Company, net of forfeitures
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Issuance of 24,040 deferred units
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Withholding of 66,427 common units for employee income taxes
|
|
—
|
|
(2,164
|
)
|
—
|
|
(2,164
|
)
|
—
|
|
(2,164
|
)
|
||||||
Contributions from noncontrolling interests
|
|
—
|
|
—
|
|
—
|
|
—
|
|
35
|
|
35
|
|
||||||
Adjustments for noncontrolling interests in consolidated partnerships
|
|
—
|
|
4
|
|
—
|
|
4
|
|
(4
|
)
|
—
|
|
||||||
Acquisition of noncontrolling interest in other consolidated partnership
|
|
—
|
|
(1,617
|
)
|
—
|
|
(1,617
|
)
|
(325
|
)
|
(1,942
|
)
|
||||||
Common distributions ($.935 per common unit)
|
|
(935
|
)
|
(93,540
|
)
|
—
|
|
(94,475
|
)
|
—
|
|
(94,475
|
)
|
||||||
Distributions to noncontrolling interests
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(145
|
)
|
(145
|
)
|
||||||
Balance, September 30, 2016
|
|
$
|
6,559
|
|
$
|
732,266
|
|
$
|
(33,333
|
)
|
$
|
705,492
|
|
$
|
160
|
|
$
|
705,652
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
General partner
|
Limited partners
|
Accumulated other comprehensive loss
|
Total partners' equity
|
Noncontrolling interests in consolidated partnerships
|
Total equity
|
||||||||||||
Balance, December 31, 2016
|
|
$
|
6,485
|
|
$
|
728,631
|
|
$
|
(29,834
|
)
|
$
|
705,282
|
|
$
|
159
|
|
$
|
705,441
|
|
Net income
|
|
379
|
|
38,048
|
|
—
|
|
38,427
|
|
—
|
|
38,427
|
|
||||||
Other comprehensive income
|
|
—
|
|
—
|
|
9,038
|
|
9,038
|
|
—
|
|
9,038
|
|
||||||
Compensation under Incentive Award Plan
|
|
—
|
|
10,891
|
|
—
|
|
10,891
|
|
—
|
|
10,891
|
|
||||||
Issuance of 1,800 common units upon exercise of options
|
|
—
|
|
54
|
|
—
|
|
54
|
|
—
|
|
54
|
|
||||||
Grant of 411,968 restricted common share awards by the Company
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Repurchase of 1,911,585 units, including transaction costs
|
|
—
|
|
(49,362
|
)
|
—
|
|
(49,362
|
)
|
—
|
|
(49,362
|
)
|
||||||
Withholding of 69,886 common units for employee income taxes
|
|
—
|
|
(2,436
|
)
|
—
|
|
(2,436
|
)
|
—
|
|
(2,436
|
)
|
||||||
Acquisition of noncontrolling interest in other consolidated partnership
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(159
|
)
|
(159
|
)
|
||||||
Common distributions ($1.01 per common unit)
|
|
(1,010
|
)
|
(101,849
|
)
|
—
|
|
(102,859
|
)
|
—
|
|
(102,859
|
)
|
||||||
Balance, September 30, 2017
|
|
$
|
5,854
|
|
$
|
623,977
|
|
$
|
(20,796
|
)
|
$
|
609,035
|
|
$
|
—
|
|
$
|
609,035
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30,
|
||||||
|
|
2017
|
|
2016
|
||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|
||
Net income
|
|
$
|
38,427
|
|
|
$
|
178,693
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation and amortization
|
|
95,175
|
|
|
82,078
|
|
||
Amortization of deferred financing costs
|
|
2,640
|
|
|
2,350
|
|
||
Gain on sale of assets
|
|
(6,943
|
)
|
|
(6,305
|
)
|
||
Gain on previously held interest in acquired joint venture
|
|
—
|
|
|
(95,516
|
)
|
||
Loss on early extinguishment of debt
|
|
35,626
|
|
|
—
|
|
||
Equity in (earnings) losses of unconsolidated joint ventures
|
|
1,201
|
|
|
(7,680
|
)
|
||
Equity-based compensation expense
|
|
10,114
|
|
|
11,815
|
|
||
Amortization of debt (premiums) and discounts, net
|
|
363
|
|
|
1,160
|
|
||
Amortization (accretion) of market rent rate adjustments, net
|
|
2,107
|
|
|
2,087
|
|
||
Straight-line rent adjustments
|
|
(4,749
|
)
|
|
(5,092
|
)
|
||
Distributions of cumulative earnings from unconsolidated joint ventures
|
|
8,128
|
|
|
10,571
|
|
||
Changes in other assets and liabilities:
|
|
|
|
|
||||
Other assets
|
|
(1,110
|
)
|
|
780
|
|
||
Accounts payable and accrued expenses
|
|
551
|
|
|
2,782
|
|
||
Net cash provided by operating activities
|
|
181,530
|
|
|
177,723
|
|
||
INVESTING ACTIVITIES
|
|
|
|
|
||||
Additions to rental property
|
|
(132,612
|
)
|
|
(112,213
|
)
|
||
Acquisitions of interests in unconsolidated joint ventures, net of cash acquired
|
|
—
|
|
|
(45,219
|
)
|
||
Additions to investments in unconsolidated joint ventures
|
|
(4,033
|
)
|
|
(27,851
|
)
|
||
Net proceeds from sale of assets
|
|
39,213
|
|
|
28,706
|
|
||
Change in restricted cash
|
|
—
|
|
|
118,370
|
|
||
Additions to non-real estate assets
|
|
(8,384
|
)
|
|
(8,982
|
)
|
||
Distributions in excess of cumulative earnings from unconsolidated joint ventures
|
|
16,019
|
|
|
14,193
|
|
||
Additions to deferred lease costs
|
|
(4,218
|
)
|
|
(5,273
|
)
|
||
Other investing activities
|
|
4,963
|
|
|
(1,221
|
)
|
||
Net cash used in investing activities
|
|
(89,052
|
)
|
|
(39,490
|
)
|
||
FINANCING ACTIVITIES
|
|
|
|
|
||||
Cash distributions paid
|
|
(102,859
|
)
|
|
(115,665
|
)
|
||
Proceeds from revolving credit facility
|
|
543,866
|
|
|
733,450
|
|
||
Repayments of revolving credit facility
|
|
(456,666
|
)
|
|
(727,750
|
)
|
||
Proceeds from notes, mortgages and loans
|
|
299,460
|
|
|
338,270
|
|
||
Repayments of notes, mortgages and loans
|
|
(302,240
|
)
|
|
(329,603
|
)
|
||
Payment of make-whole premium related to early extinguishment of debt
|
|
(34,143
|
)
|
|
—
|
|
||
Repayment of deferred financing obligation
|
|
—
|
|
|
(28,388
|
)
|
||
Repurchase of units, including transaction costs
|
|
(49,362
|
)
|
|
—
|
|
||
Employee income taxes paid related to shares withheld upon vesting of equity awards
|
|
(2,436
|
)
|
|
(2,164
|
)
|
||
Additions to deferred financing costs
|
|
(2,900
|
)
|
|
(4,243
|
)
|
||
Proceeds from exercise of options
|
|
54
|
|
|
1,693
|
|
||
Proceeds from other financing activities
|
|
12,054
|
|
|
35
|
|
||
Payment for other financing activities
|
|
(782
|
)
|
|
(99
|
)
|
||
Net cash used in financing activities
|
|
(95,954
|
)
|
|
(134,464
|
)
|
||
Effect of foreign currency on cash and cash equivalents
|
|
(54
|
)
|
|
532
|
|
||
Net increase (decrease) in cash and cash equivalents
|
|
(3,530
|
)
|
|
4,301
|
|
||
Cash and cash equivalents, beginning of period
|
|
12,199
|
|
|
21,552
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
8,669
|
|
|
$
|
25,853
|
|
Property
|
|
Location
|
|
Date Sold
|
|
Square Feet
(in 000's)
|
|
Net Sales Proceeds
(in 000's)
|
|
Gain on Sale(in 000's)
|
|||||
Westbrook
|
|
Westbrook, CT
|
|
May 2017
|
|
290
|
|
|
$
|
39,212
|
|
|
$
|
6,943
|
|
Project
|
|
Approximate square feet
(in 000's) |
|
Costs Incurred to Date
(in millions) |
|
Projected Opening
|
|||
New development:
|
|
|
|
|
|
|
|||
Fort Worth
|
|
352
|
|
|
$
|
74.7
|
|
|
October 2017
|
As of September 30, 2017
|
||||||||||||||||
Joint Venture
|
|
Outlet Center Location
|
|
Ownership %
|
|
Square Feet
(in 000's)
|
|
Carrying Value of Investment (in millions)
|
|
Total Joint Venture Debt, Net
(in millions)
(1)
|
||||||
Columbus
|
|
Columbus, OH
|
|
50.0
|
%
|
|
355
|
|
|
$
|
6.8
|
|
|
$
|
84.4
|
|
National Harbor
|
|
National Harbor, MD
|
|
50.0
|
%
|
|
341
|
|
|
2.4
|
|
|
86.4
|
|
||
RioCan Canada
|
|
Various
|
|
50.0
|
%
|
|
924
|
|
|
116.6
|
|
|
11.4
|
|
||
Investments included in total assets
|
|
|
|
|
|
$
|
125.8
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Charlotte
(3)
|
|
Charlotte, NC
|
|
50.0
|
%
|
|
398
|
|
|
$
|
(3.6
|
)
|
|
$
|
89.8
|
|
Galveston/Houston
(2)(3)
|
|
Texas City, TX
|
|
50.0
|
%
|
|
353
|
|
|
(12.5
|
)
|
|
79.4
|
|
||
Investments included in other liabilities
|
|
|
|
|
|
$
|
(16.1
|
)
|
|
|
|
As of December 31, 2016
|
||||||||||||||||
Joint Venture
|
|
Outlet Center Location
|
|
Ownership %
|
|
Square Feet
(in 000's)
|
|
Carrying Value of Investment (in millions)
|
|
Total Joint Venture Debt, Net
(in millions) (1) |
||||||
Columbus
|
|
Columbus, OH
|
|
50.0
|
%
|
|
355
|
|
|
$
|
6.7
|
|
|
$
|
84.2
|
|
National Harbor
|
|
National Harbor, MD
|
|
50.0
|
%
|
|
341
|
|
|
4.1
|
|
|
86.1
|
|
||
RioCan Canada
|
|
Various
|
|
50.0
|
%
|
|
901
|
|
|
117.3
|
|
|
11.1
|
|
||
Investments included in total assets
|
|
|
|
|
|
$
|
128.1
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Charlotte
(3)
|
|
Charlotte, NC
|
|
50.0
|
%
|
|
398
|
|
|
$
|
(2.5
|
)
|
|
$
|
89.7
|
|
Galveston/Houston
(2)(3)
|
|
Texas City, TX
|
|
50.0
|
%
|
|
353
|
|
|
(3.8
|
)
|
|
64.9
|
|
||
Investments included in other liabilities
|
|
|
|
|
|
$
|
(6.3
|
)
|
|
|
|
(1)
|
Net of debt origination costs and including premiums of
$1.6 million
and
$1.6 million
as of
September 30, 2017
and December 31, 2016, respectively.
|
(2)
|
In July 2017, the joint venture amended and restated the initial construction loan to increase the amount available to borrow from
$70.0 million
to
$80.0 million
and extended the maturity date until July 2020 with
two
one
-year options. The amended and restated loan also changed the interest rate from LIBOR +
1.50%
to an interest rate of LIBOR +
1.65%
. At the closing of the amendment, the joint venture distributed approximately
$14.5 million
equally between the partners.
|
(3)
|
The negative carrying value is due to the distributions of proceeds from mortgage loans and quarterly distributions of excess cash flow exceeding the original contributions from the partners.
|
|
|
Three months ended
|
|
Nine months ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Fee:
|
|
|
|
|
|
|
|
|
|
|
||||||
Management and marketing
|
|
$
|
564
|
|
|
$
|
656
|
|
|
1,676
|
|
|
2,199
|
|
||
Development and leasing
|
|
20
|
|
|
65
|
|
|
$
|
87
|
|
|
$
|
611
|
|
||
Loan guarantee
|
|
4
|
|
|
85
|
|
|
13
|
|
|
449
|
|
||||
Total Fees
|
|
$
|
588
|
|
|
$
|
806
|
|
|
$
|
1,776
|
|
|
$
|
3,259
|
|
Condensed Combined Balance Sheets - Unconsolidated Joint Ventures
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Assets
|
|
|
|
|
|
|
||
Land
|
|
$
|
95,998
|
|
|
$
|
88,015
|
|
Buildings, improvements and fixtures
|
|
514,865
|
|
|
503,548
|
|
||
Construction in progress, including land under development
|
|
2,849
|
|
|
13,037
|
|
||
|
|
613,712
|
|
|
604,600
|
|
||
Accumulated depreciation
|
|
(88,163
|
)
|
|
(67,431
|
)
|
||
Total rental property, net
|
|
525,549
|
|
|
537,169
|
|
||
Cash and cash equivalents
|
|
23,769
|
|
|
27,271
|
|
||
Deferred lease costs and other intangibles, net
|
|
11,436
|
|
|
13,612
|
|
||
Prepaids and other assets
|
|
16,262
|
|
|
12,567
|
|
||
Total assets
|
|
$
|
577,016
|
|
|
$
|
590,619
|
|
Liabilities and Owners' Equity
|
|
|
|
|
|
|
||
Mortgages payable, net
|
|
$
|
351,322
|
|
|
$
|
335,971
|
|
Accounts payable and other liabilities
|
|
13,463
|
|
|
20,011
|
|
||
Total liabilities
|
|
364,785
|
|
|
355,982
|
|
||
Owners' equity
|
|
212,231
|
|
|
234,637
|
|
||
Total liabilities and owners' equity
|
|
$
|
577,016
|
|
|
$
|
590,619
|
|
|
|
Three months ended
|
|
Nine months ended
|
||||||||||||
Condensed Combined Statements of Operations
|
|
September 30,
|
|
September 30,
|
||||||||||||
- Unconsolidated Joint Ventures
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Revenues
|
|
$
|
25,241
|
|
|
$
|
25,654
|
|
|
$
|
72,588
|
|
|
$
|
82,693
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|||||||
Property operating
|
|
8,987
|
|
|
9,103
|
|
|
27,242
|
|
|
30,499
|
|
||||
General and administrative
|
|
72
|
|
|
95
|
|
|
289
|
|
|
390
|
|
||||
Asset impairment
|
|
18,042
|
|
|
5,838
|
|
|
18,042
|
|
|
5,838
|
|
||||
Depreciation and amortization
|
|
6,998
|
|
|
8,001
|
|
|
21,453
|
|
|
26,208
|
|
||||
Total expenses
|
|
34,099
|
|
|
23,037
|
|
|
67,026
|
|
|
62,935
|
|
||||
Operating income (loss)
|
|
(8,858
|
)
|
|
2,617
|
|
|
5,562
|
|
|
19,758
|
|
||||
Interest expense
|
|
(2,776
|
)
|
|
(1,925
|
)
|
|
(7,497
|
)
|
|
(7,161
|
)
|
||||
Other non-operating income
|
|
20
|
|
|
2
|
|
|
23
|
|
|
5
|
|
||||
Net income (loss)
|
|
$
|
(11,614
|
)
|
|
$
|
694
|
|
|
$
|
(1,912
|
)
|
|
$
|
12,602
|
|
|
|
|
|
|
|
|
|
|
||||||||
The Company and Operating Partnership's share of:
|
|
|
|
|
|
|
||||||||||
Net income (loss)
|
|
$
|
(5,893
|
)
|
|
$
|
715
|
|
|
$
|
(1,201
|
)
|
|
$
|
7,680
|
|
Depreciation and amortization expense (real estate related)
|
|
$
|
3,583
|
|
|
$
|
4,325
|
|
|
$
|
10,971
|
|
|
$
|
15,472
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Unsecured lines of credit
|
|
$
|
148,200
|
|
|
$
|
61,000
|
|
Unsecured term loan
|
|
$
|
325,000
|
|
|
$
|
325,000
|
|
|
|
|
|
|
|
As of
|
|
As of
|
|||||||||||||
|
|
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
|||||||||||||
|
|
Stated Interest Rate(s)
|
|
Maturity Date
|
|
Principal
|
|
Book Value
(1)
|
|
Principal
|
|
Book Value
(1)
|
|||||||||
Senior, unsecured notes:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Senior notes
|
|
6.125
|
%
|
|
June 2020
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
300,000
|
|
|
$
|
298,226
|
|
Senior notes
|
|
3.875
|
%
|
|
December 2023
|
|
250,000
|
|
|
245,882
|
|
|
250,000
|
|
|
245,425
|
|
||||
Senior notes
|
|
3.750
|
%
|
|
December 2024
|
|
250,000
|
|
|
247,321
|
|
|
250,000
|
|
|
247,058
|
|
||||
Senior notes
|
|
3.125
|
%
|
|
September 2026
|
|
350,000
|
|
|
344,993
|
|
|
350,000
|
|
|
344,600
|
|
||||
Senior notes
|
|
3.875
|
%
|
|
July 2027
|
|
300,000
|
|
|
295,985
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Mortgages payable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Atlantic City
(2)
|
|
5.14%-7.65%
|
|
|
November 2021- December 2026
|
|
38,230
|
|
|
40,747
|
|
|
40,471
|
|
|
43,286
|
|
||||
Foxwoods
|
|
LIBOR + 1.55%
|
|
|
December 2017
|
|
70,250
|
|
|
70,174
|
|
|
70,250
|
|
|
69,902
|
|
||||
Southaven
|
|
LIBOR + 1.75%
|
|
|
April 2018
|
|
60,000
|
|
|
59,855
|
|
|
59,277
|
|
|
58,957
|
|
||||
Unsecured term loan
|
|
LIBOR + 0.95%
|
|
|
April 2021
|
|
325,000
|
|
|
323,011
|
|
|
325,000
|
|
|
322,410
|
|
||||
Unsecured lines of credit
|
|
LIBOR + 0.90%
|
|
|
October 2019
|
|
148,200
|
|
|
146,013
|
|
|
61,000
|
|
|
58,002
|
|
||||
|
|
|
|
|
|
$
|
1,791,680
|
|
|
$
|
1,773,981
|
|
|
$
|
1,705,998
|
|
|
$
|
1,687,866
|
|
(1)
|
Including premiums and net of debt discount and debt origination costs.
|
(2)
|
The effective interest rate assigned during the purchase price allocation to the Atlantic City mortgages assumed during the acquisition in 2011 was
5.05%
.
|
Calendar Year
|
|
Amount
|
|
|
2017
|
|
$
|
71,017
|
|
2018
|
|
63,183
|
|
|
2019
|
|
151,569
|
|
|
2020
|
|
3,566
|
|
|
2021
|
|
330,793
|
|
|
Thereafter
|
|
1,171,552
|
|
|
Subtotal
|
|
1,791,680
|
|
|
Net discount and debt origination costs
|
|
(17,699
|
)
|
|
Total
|
|
$
|
1,773,981
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value
|
|||||||||
Effective Date
|
|
Maturity Date
|
|
Notional Amount
|
|
Bank Pay Rate
|
|
Company Fixed Pay Rate
|
|
September 30, 2017
|
|
December 31, 2016
|
|||||||
Assets (Liabilities):
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
November 14, 2013
|
|
August 14, 2018
|
|
$
|
50,000
|
|
|
1 month LIBOR
|
|
1.3075
|
%
|
|
$
|
52
|
|
|
$
|
(119
|
)
|
November 14, 2013
|
|
August 14, 2018
|
|
50,000
|
|
|
1 month LIBOR
|
|
1.2970
|
%
|
|
56
|
|
|
(110
|
)
|
|||
November 14, 2013
|
|
August 14, 2018
|
|
50,000
|
|
|
1 month LIBOR
|
|
1.3025
|
%
|
|
54
|
|
|
(115
|
)
|
|||
April 13, 2016
|
|
January 1, 2021
|
|
50,000
|
|
|
1 month LIBOR
|
|
1.0390
|
%
|
|
1,147
|
|
|
1,227
|
|
|||
April 13, 2016
|
|
January 1, 2021
|
|
50,000
|
|
|
1 month LIBOR
|
|
1.0395
|
%
|
|
1,146
|
|
|
1,226
|
|
|||
April 13, 2016
|
|
January 1, 2021
|
|
50,000
|
|
|
1 month LIBOR
|
|
1.0400
|
%
|
|
1,145
|
|
|
1,222
|
|
|||
April 13, 2016
|
|
January 1, 2021
|
|
25,000
|
|
|
1 month LIBOR
|
|
0.9915
|
%
|
|
611
|
|
|
662
|
|
|||
Total
|
|
|
|
$
|
325,000
|
|
|
|
|
|
|
$
|
4,211
|
|
|
$
|
3,993
|
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Interest Rate Swaps (Effective Portion):
|
|
|
|
|
|
|
|
|
||||||||
Amount of gain (loss) recognized in OCI on derivative
|
|
$
|
39
|
|
|
$
|
2,228
|
|
|
$
|
217
|
|
|
$
|
(1,601
|
)
|
Tier
|
|
Description
|
Level 1
|
|
Observable inputs such as quoted prices in active markets
|
Level 2
|
|
Inputs other than quoted prices in active markets that are either directly or indirectly observable
|
Level 3
|
|
Unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
|
|
|
Quoted Prices in Active Markets for Identical Assets or Liabilities
|
|
Significant Observable Inputs
|
|
Significant Unobservable Inputs
|
||||||||
|
|
Total
|
|
|
|
|||||||||||
Fair value as of September 30, 2017:
|
|
|
|
|
|
|
|
|
||||||||
Asset:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps (prepaids and other assets)
|
|
$
|
4,211
|
|
|
$
|
—
|
|
|
$
|
4,211
|
|
|
$
|
—
|
|
Total assets
|
|
$
|
4,211
|
|
|
$
|
—
|
|
|
$
|
4,211
|
|
|
$
|
—
|
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
|
|
|
Quoted Prices in Active Markets for Identical Assets or Liabilities
|
|
Significant Observable Inputs
|
|
Significant Unobservable Inputs
|
||||||||
|
|
Total
|
|
|
|
|||||||||||
Fair value as of December 31, 2016:
|
|
|
|
|
|
|
|
|
||||||||
Asset:
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps (prepaids and other assets)
|
|
$
|
3,993
|
|
|
$
|
—
|
|
|
$
|
3,993
|
|
|
$
|
—
|
|
Total assets
|
|
$
|
3,993
|
|
|
$
|
—
|
|
|
$
|
3,993
|
|
|
$
|
—
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Level 1 Quoted Prices in Active Markets for Identical Assets or Liabilities
|
|
$
|
—
|
|
|
$
|
—
|
|
Level 2 Significant Observable Inputs
|
|
1,153,778
|
|
|
1,137,976
|
|
||
Level 3 Significant Unobservable Inputs
|
|
647,877
|
|
|
566,668
|
|
||
Total fair value of debt
|
|
$
|
1,801,655
|
|
|
$
|
1,704,644
|
|
|
|
|
|
|
||||
Recorded value of debt
|
|
$
|
1,773,981
|
|
|
$
|
1,687,866
|
|
|
|
|
|
Limited Partnership Units
|
||||||||
|
|
General Partnership Units
|
|
Class A
|
|
Class B
|
|
Total
|
||||
Balance December 31, 2015
|
|
1,000,000
|
|
|
5,052,743
|
|
|
94,880,825
|
|
|
99,933,568
|
|
Grant of restricted common share awards by the Company, net of forfeitures
|
|
—
|
|
|
—
|
|
|
173,124
|
|
|
173,124
|
|
Issuance of deferred units
|
|
—
|
|
|
—
|
|
|
24,040
|
|
|
24,040
|
|
Units issued upon exercise of options
|
|
—
|
|
|
—
|
|
|
57,700
|
|
|
57,700
|
|
Units withheld for employee income taxes
|
|
—
|
|
|
—
|
|
|
(66,427
|
)
|
|
(66,427
|
)
|
Balance September 30, 2016
|
|
1,000,000
|
|
|
5,052,743
|
|
|
95,069,262
|
|
|
100,122,005
|
|
|
|
|
|
|
|
|
|
|
||||
Balance December 31, 2016
|
|
1,000,000
|
|
|
5,027,781
|
|
|
95,095,891
|
|
|
100,123,672
|
|
Grant of restricted common share awards by the Company, net of forfeitures
|
|
—
|
|
|
—
|
|
|
411,968
|
|
|
411,968
|
|
Repurchase of units
|
|
—
|
|
|
—
|
|
|
(1,911,585
|
)
|
|
(1,911,585
|
)
|
Units issued upon exercise of options
|
|
—
|
|
|
—
|
|
|
1,800
|
|
|
1,800
|
|
Units withheld for employee income taxes
|
|
—
|
|
|
—
|
|
|
(69,886
|
)
|
|
(69,886
|
)
|
Balance September 30, 2017
|
|
1,000,000
|
|
|
5,027,781
|
|
|
93,528,188
|
|
|
98,555,969
|
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to Tanger Factory Outlet Centers, Inc.
|
|
$
|
(15,219
|
)
|
|
$
|
69,104
|
|
|
$
|
36,507
|
|
|
$
|
169,671
|
|
Less allocation of earnings to participating securities
|
|
(306
|
)
|
|
(627
|
)
|
|
(907
|
)
|
|
(1,649
|
)
|
||||
Net income (loss) available to common shareholders of Tanger Factory Outlet Centers, Inc.
|
|
$
|
(15,525
|
)
|
|
$
|
68,477
|
|
|
$
|
35,600
|
|
|
$
|
168,022
|
|
Denominator:
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted average common shares
|
|
93,923
|
|
|
95,156
|
|
|
94,781
|
|
|
95,075
|
|
||||
Effect of notional units
|
|
—
|
|
|
426
|
|
|
—
|
|
|
393
|
|
||||
Effect of outstanding options and certain restricted common shares
|
|
—
|
|
|
90
|
|
|
23
|
|
|
69
|
|
||||
Diluted weighted average common shares
|
|
93,923
|
|
|
95,672
|
|
|
94,804
|
|
|
95,537
|
|
||||
Basic earnings per common share:
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
|
$
|
(0.17
|
)
|
|
$
|
0.72
|
|
|
$
|
0.38
|
|
|
$
|
1.77
|
|
Diluted earnings per common share:
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
|
$
|
(0.17
|
)
|
|
$
|
0.72
|
|
|
$
|
0.38
|
|
|
$
|
1.76
|
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income (loss) attributable to partners of the Operating Partnership
|
|
$
|
(16,034
|
)
|
|
$
|
72,772
|
|
|
$
|
38,427
|
|
|
$
|
178,680
|
|
Less allocation of earnings to participating securities
|
|
(306
|
)
|
|
(629
|
)
|
|
(907
|
)
|
|
(1,651
|
)
|
||||
Net income (loss) available to common unitholders of the Operating Partnership
|
|
$
|
(16,340
|
)
|
|
$
|
72,143
|
|
|
$
|
37,520
|
|
|
$
|
177,029
|
|
Denominator:
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted average common units
|
|
98,951
|
|
|
100,209
|
|
|
99,809
|
|
|
100,127
|
|
||||
Effect of notional units
|
|
—
|
|
|
426
|
|
|
—
|
|
|
393
|
|
||||
Effect of outstanding options and certain restricted common units
|
|
—
|
|
|
90
|
|
|
23
|
|
|
69
|
|
||||
Diluted weighted average common units
|
|
98,951
|
|
|
100,725
|
|
|
99,832
|
|
|
100,589
|
|
||||
Basic earnings per common unit:
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
|
$
|
(0.17
|
)
|
|
$
|
0.72
|
|
|
$
|
0.38
|
|
|
$
|
1.77
|
|
Diluted earnings per common unit:
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
|
$
|
(0.17
|
)
|
|
$
|
0.72
|
|
|
$
|
0.38
|
|
|
$
|
1.76
|
|
|
|
Three months ended
|
|
Nine months ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Restricted common shares
|
|
$
|
2,302
|
|
|
$
|
3,020
|
|
|
$
|
7,039
|
|
|
$
|
8,527
|
|
Notional unit performance awards
|
|
939
|
|
|
1,057
|
|
|
2,870
|
|
|
2,967
|
|
||||
Options
|
|
77
|
|
|
83
|
|
|
205
|
|
|
321
|
|
||||
Total equity-based compensation
|
|
$
|
3,318
|
|
|
$
|
4,160
|
|
|
$
|
10,114
|
|
|
$
|
11,815
|
|
|
|
Three months ended
|
|
Nine months ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Equity-based compensation expense capitalized
|
|
$
|
267
|
|
|
$
|
244
|
|
|
$
|
777
|
|
|
$
|
741
|
|
Performance targets
(1)
|
|
|
||
Absolute portion of award:
|
|
|
||
Percent of total award
|
|
50%
|
||
Absolute share price appreciation range
|
|
18% - 35%
|
||
Percentage of units to be earned
|
|
20%-100%
|
||
|
|
|
||
Relative portion of award:
|
|
|
||
Percent of total award
|
|
50%
|
||
Percentile rank of peer group range
(2)
|
|
40th - 70th
|
||
Percentage of units to be earned
|
|
20%-100%
|
||
|
|
|
||
Maximum number of restricted common shares that may be earned
|
|
296,400
|
|
|
Grant date fair value per share
|
|
$
|
16.60
|
|
(1)
|
The number of restricted common shares received under the 2017 OPP will be determined on a pro-rata basis by linear interpolation between share price appreciation thresholds, both for absolute share price appreciation and for relative share price appreciation amongst the Company's peer group. The share price for the purposes of calculation of share price appreciation will be adjusted on a penny-for-penny basis with respect to any dividend payments made during the measurement period.
|
(2)
|
The peer group is based on companies included in the SNL Equity REIT index.
|
Risk free interest rate
(1)
|
|
1.52
|
%
|
Expected dividend yield
(2)
|
|
3.4
|
%
|
Expected volatility
(3)
|
|
19
|
%
|
(1)
|
Represents the interest rate as of the grant date on US treasury bonds having the same life as the estimated life of the restricted unit grants.
|
(2)
|
The dividend yield is calculated utilizing the dividends paid for the previous five-year period.
|
(3)
|
Based on a mix of historical and implied volatility for our common shares and the common shares of our peer index companies over the measurement period.
|
|
|
|
||||||||||||||||||||||
|
|
Tanger Factory Outlet Centers, Inc. Accumulated Other Comprehensive Income (Loss)
|
|
Noncontrolling Interest in Operating Partnership Accumulated Other Comprehensive Income (Loss)
|
||||||||||||||||||||
|
|
Foreign Currency
|
|
Cash flow hedges
|
|
Total
|
|
Foreign Currency
|
|
Cash flow hedges
|
|
Total
|
||||||||||||
Balance June 30, 2017
|
|
$
|
(28,209
|
)
|
|
$
|
3,962
|
|
|
$
|
(24,247
|
)
|
|
$
|
(1,534
|
)
|
|
$
|
209
|
|
|
$
|
(1,325
|
)
|
Other comprehensive income before reclassifications
|
|
4,497
|
|
|
89
|
|
|
4,586
|
|
|
240
|
|
|
5
|
|
|
245
|
|
||||||
Reclassification out of accumulated other comprehensive income into interest expense
|
|
—
|
|
|
(52
|
)
|
|
(52
|
)
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
||||||
Balance September 30, 2017
|
|
$
|
(23,712
|
)
|
|
$
|
3,999
|
|
|
$
|
(19,713
|
)
|
|
$
|
(1,294
|
)
|
|
$
|
211
|
|
|
$
|
(1,083
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
||||||||||||||||||||||
|
|
Tanger Factory Outlet Centers, Inc. Accumulated Other Comprehensive Income (Loss)
|
|
Noncontrolling Interest in Operating Partnership Accumulated Other Comprehensive Income (Loss)
|
||||||||||||||||||||
|
|
Foreign Currency
|
|
Cash flow hedges
|
|
Total
|
|
Foreign Currency
|
|
Cash flow hedges
|
|
Total
|
||||||||||||
Balance December 31, 2016
|
|
$
|
(32,087
|
)
|
|
$
|
3,792
|
|
|
$
|
(28,295
|
)
|
|
$
|
(1,740
|
)
|
|
$
|
201
|
|
|
$
|
(1,539
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
8,375
|
|
|
(154
|
)
|
|
8,221
|
|
|
446
|
|
|
(9
|
)
|
|
437
|
|
||||||
Reclassification out of accumulated other comprehensive income into interest expense
|
|
—
|
|
|
361
|
|
|
361
|
|
|
—
|
|
|
19
|
|
|
19
|
|
||||||
Balance September 30, 2017
|
|
$
|
(23,712
|
)
|
|
$
|
3,999
|
|
|
$
|
(19,713
|
)
|
|
$
|
(1,294
|
)
|
|
$
|
211
|
|
|
$
|
(1,083
|
)
|
|
|
|
||||||||||||||||||||||
|
|
Tanger Factory Outlet Centers, Inc. Accumulated Other Comprehensive Income (Loss)
|
|
Noncontrolling Interest in Operating Partnership Accumulated Other Comprehensive Income (Loss)
|
||||||||||||||||||||
|
|
Foreign Currency
|
|
Cash flow hedges
|
|
Total
|
|
Foreign Currency
|
|
Cash flow hedges
|
|
Total
|
||||||||||||
Balance June 30, 2016
|
|
$
|
(27,869
|
)
|
|
$
|
(4,221
|
)
|
|
$
|
(32,090
|
)
|
|
$
|
(1,516
|
)
|
|
$
|
(224
|
)
|
|
$
|
(1,740
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
(1,644
|
)
|
|
1,596
|
|
|
(48
|
)
|
|
(87
|
)
|
|
84
|
|
|
(3
|
)
|
||||||
Reclassification out of accumulated other comprehensive income into interest expense
|
|
—
|
|
|
520
|
|
|
520
|
|
|
—
|
|
|
28
|
|
|
28
|
|
||||||
Balance September 30, 2016
|
|
$
|
(29,513
|
)
|
|
$
|
(2,105
|
)
|
|
$
|
(31,618
|
)
|
|
$
|
(1,603
|
)
|
|
$
|
(112
|
)
|
|
$
|
(1,715
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
||||||||||||||||||||||
|
|
Tanger Factory Outlet Centers, Inc. Accumulated Other Comprehensive Income (Loss)
|
|
Noncontrolling Interest in Operating Partnership Accumulated Other Comprehensive Income (Loss)
|
||||||||||||||||||||
|
|
Foreign Currency
|
|
Cash flow hedges
|
|
Total
|
|
Foreign Currency
|
|
Cash flow hedges
|
|
Total
|
||||||||||||
Balance December 31, 2015
|
|
$
|
(36,130
|
)
|
|
$
|
(585
|
)
|
|
$
|
(36,715
|
)
|
|
$
|
(1,956
|
)
|
|
$
|
(31
|
)
|
|
$
|
(1,987
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
6,617
|
|
|
(2,885
|
)
|
|
3,732
|
|
|
353
|
|
|
(154
|
)
|
|
199
|
|
||||||
Reclassification out of accumulated other comprehensive income into interest expense
|
|
—
|
|
|
1,365
|
|
|
1,365
|
|
|
—
|
|
|
73
|
|
|
73
|
|
||||||
Balance September 30, 2016
|
|
$
|
(29,513
|
)
|
|
$
|
(2,105
|
)
|
|
$
|
(31,618
|
)
|
|
$
|
(1,603
|
)
|
|
$
|
(112
|
)
|
|
$
|
(1,715
|
)
|
|
|
Foreign Currency
|
|
Cash flow hedges
|
|
Accumulated Other Comprehensive Income (Loss)
|
||||||
Balance June 30, 2017
|
|
$
|
(29,743
|
)
|
|
$
|
4,171
|
|
|
$
|
(25,572
|
)
|
Other comprehensive income before reclassifications
|
|
4,737
|
|
|
94
|
|
|
4,831
|
|
|||
Reclassification out of accumulated other comprehensive income into interest expense
|
|
—
|
|
|
(55
|
)
|
|
(55
|
)
|
|||
Balance September 30, 2017
|
|
$
|
(25,006
|
)
|
|
$
|
4,210
|
|
|
$
|
(20,796
|
)
|
|
|
|
|
|
|
|
||||||
|
|
Foreign Currency
|
|
Cash flow hedges
|
|
Accumulated Other Comprehensive Income (Loss)
|
||||||
Balance December 31, 2016
|
|
$
|
(33,827
|
)
|
|
$
|
3,993
|
|
|
$
|
(29,834
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
8,821
|
|
|
(163
|
)
|
|
8,658
|
|
|||
Reclassification out of accumulated other comprehensive income into interest expense
|
|
—
|
|
|
380
|
|
|
380
|
|
|||
Balance September 30, 2017
|
|
$
|
(25,006
|
)
|
|
$
|
4,210
|
|
|
$
|
(20,796
|
)
|
|
|
Foreign Currency
|
|
Cash flow hedges
|
|
Accumulated Other Comprehensive Income (Loss)
|
||||||
Balance June 30, 2016
|
|
$
|
(29,385
|
)
|
|
$
|
(4,445
|
)
|
|
$
|
(33,830
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
(1,731
|
)
|
|
1,680
|
|
|
(51
|
)
|
|||
Reclassification out of accumulated other comprehensive income into interest expense
|
|
—
|
|
|
548
|
|
|
548
|
|
|||
Balance September 30, 2016
|
|
$
|
(31,116
|
)
|
|
$
|
(2,217
|
)
|
|
$
|
(33,333
|
)
|
|
|
|
|
|
|
|
||||||
|
|
Foreign Currency
|
|
Cash flow hedges
|
|
Accumulated Other Comprehensive Income (Loss)
|
||||||
Balance December 31, 2015
|
|
$
|
(38,086
|
)
|
|
$
|
(616
|
)
|
|
$
|
(38,702
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
6,970
|
|
|
(3,039
|
)
|
|
3,931
|
|
|||
Reclassification out of accumulated other comprehensive income into interest expense
|
|
—
|
|
|
1,438
|
|
|
1,438
|
|
|||
Balance September 30, 2016
|
|
$
|
(31,116
|
)
|
|
$
|
(2,217
|
)
|
|
$
|
(33,333
|
)
|
|
|
September 30, 2017
|
|
September 30, 2016
|
||||
Costs relating to construction included in accounts payable and accrued expenses
|
|
$
|
27,090
|
|
|
$
|
20,340
|
|
|
|
|
|
Consolidated Outlet Centers
|
|
Unconsolidated Joint Venture Outlet Centers
|
||||||||
Outlet Center
|
|
Quarter Acquired/Opened/Disposed
|
|
Square Feet
|
|
Outlet Centers
|
|
Square Feet
|
|
Outlet Centers
|
||||
As of January 1, 2016
|
|
|
|
11,746
|
|
|
34
|
|
|
2,747
|
|
|
9
|
|
New Developments:
|
|
|
|
|
|
|
|
|
|
|
||||
Columbus
|
|
Second Quarter
|
|
—
|
|
|
—
|
|
|
355
|
|
|
1
|
|
Daytona Beach
|
|
Fourth Quarter
|
|
349
|
|
|
1
|
|
|
—
|
|
|
—
|
|
Acquisitions:
|
|
|
|
|
|
|
|
|
|
|
||||
Westgate
|
|
Second Quarter
|
|
408
|
|
|
1
|
|
|
(408
|
)
|
|
(1
|
)
|
Savannah
|
|
Third Quarter
|
|
419
|
|
|
1
|
|
|
(419
|
)
|
|
(1
|
)
|
Expansions:
|
|
|
|
|
|
|
|
|
|
|
||||
Ottawa
|
|
First Quarter
|
|
—
|
|
|
—
|
|
|
32
|
|
|
—
|
|
Savannah
|
|
Second Quarter
|
|
—
|
|
|
—
|
|
|
42
|
|
|
—
|
|
Dispositions:
|
|
|
|
|
|
|
|
|
|
|
||||
Fort Myers
|
|
First Quarter
|
|
(199
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
Demolition:
|
|
|
|
|
|
|
|
|
|
|
||||
Lancaster
|
|
Various
|
|
(25
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
Other
|
|
|
|
12
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
As of December 31, 2016
|
|
|
|
12,710
|
|
|
36
|
|
|
2,348
|
|
|
8
|
|
Expansion:
|
|
|
|
|
|
|
|
|
|
|
||||
Ottawa
|
|
Second Quarter
|
|
—
|
|
|
—
|
|
|
39
|
|
|
—
|
|
Lancaster
|
|
Third Quarter
|
|
148
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Dispositions:
|
|
|
|
|
|
|
|
|
|
|
||||
Westbrook
|
|
Second Quarter
|
|
(290
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
Other
|
|
|
|
7
|
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
As of September 30, 2017
|
|
|
|
12,575
|
|
|
35
|
|
|
2,371
|
|
|
8
|
|
Consolidated Outlet Centers
|
|
Legal
|
|
Square
|
|
%
|
||
Location
|
|
Ownership %
|
|
Feet
|
|
Occupied
|
||
Deer Park, New York
|
|
100
|
|
749,074
|
|
|
95
|
|
Riverhead, New York
(1)
|
|
100
|
|
729,706
|
|
|
98
|
|
Rehoboth Beach, Delaware
(1)
|
|
100
|
|
557,404
|
|
|
99
|
|
Foley, Alabama
|
|
100
|
|
556,677
|
|
|
99
|
|
Atlantic City, New Jersey
(1) (4)
|
|
99
|
|
489,706
|
|
|
87
|
|
San Marcos, Texas
|
|
100
|
|
471,816
|
|
|
97
|
|
Sevierville, Tennessee
(1)
|
|
100
|
|
448,355
|
|
|
100
|
|
Savannah, Georgia
|
|
100
|
|
429,089
|
|
|
97
|
|
Myrtle Beach Hwy 501, South Carolina
|
|
100
|
|
425,334
|
|
|
94
|
|
Jeffersonville, Ohio
|
|
100
|
|
411,849
|
|
|
95
|
|
Glendale, Arizona (Westgate)
|
|
100
|
|
407,673
|
|
|
97
|
|
Myrtle Beach Hwy 17, South Carolina
(1)
|
|
100
|
|
403,339
|
|
|
100
|
|
Charleston, South Carolina
|
|
100
|
|
382,117
|
|
|
97
|
|
Lancaster, Pennsylvania
|
|
100
|
|
377,299
|
|
|
93
|
|
Pittsburgh, Pennsylvania
|
|
100
|
|
372,958
|
|
|
100
|
|
Commerce, Georgia
|
|
100
|
|
371,408
|
|
|
97
|
|
Grand Rapids, Michigan
|
|
100
|
|
357,080
|
|
|
97
|
|
Daytona Beach, Florida
|
|
100
|
|
351,704
|
|
|
97
|
|
Branson, Missouri
|
|
100
|
|
329,861
|
|
|
100
|
|
Locust Grove, Georgia
|
|
100
|
|
321,070
|
|
|
97
|
|
Gonzales, Louisiana
|
|
100
|
|
321,066
|
|
|
99
|
|
Southaven, Mississippi
(2) (4)
|
|
50
|
|
320,341
|
|
|
97
|
|
Park City, Utah
|
|
100
|
|
319,661
|
|
|
97
|
|
Mebane, North Carolina
|
|
100
|
|
318,910
|
|
|
100
|
|
Howell, Michigan
|
|
100
|
|
314,459
|
|
|
98
|
|
Mashantucket, Connecticut (Foxwoods)
(1) (2) (4)
|
|
67
|
|
311,614
|
|
|
94
|
|
Williamsburg, Iowa
|
|
100
|
|
276,331
|
|
|
97
|
|
Tilton, New Hampshire
|
|
100
|
|
250,107
|
|
|
93
|
|
Hershey, Pennsylvania
|
|
100
|
|
247,500
|
|
|
100
|
|
Hilton Head II, South Carolina
|
|
100
|
|
206,564
|
|
|
96
|
|
Ocean City, Maryland
(1)
|
|
100
|
|
198,800
|
|
|
98
|
|
Hilton Head I, South Carolina
|
|
100
|
|
181,670
|
|
|
99
|
|
Terrell, Texas
|
|
100
|
|
177,800
|
|
|
96
|
|
Blowing Rock, North Carolina
|
|
100
|
|
104,009
|
|
|
98
|
|
Nags Head, North Carolina
|
|
100
|
|
82,161
|
|
|
100
|
|
Totals
|
|
|
|
12,574,512
|
|
|
97
|
(3)
|
(1)
|
These properties or a portion thereof are subject to a ground lease.
|
(2)
|
Based on capital contribution and distribution provisions in the joint venture agreement, we expect our economic interest in the venture's cash flow to be greater than our legal ownership percentage. We currently receive substantially all the economic interest of the property.
|
(3)
|
Excludes the occupancy rate at our Daytona Beach outlet center which opened during the fourth quarter of 2016 and has not yet stabilized.
|
(4)
|
Property encumbered by mortgage. See notes
6
and
7
to the consolidated financial statements for further details of our debt obligations.
|
Unconsolidated joint venture properties
|
|
Legal
|
|
Square
|
|
%
|
|
|
Location
|
|
Ownership %
|
|
Feet
|
|
Occupied
|
|
|
Charlotte, North Carolina
(1)
|
|
50
|
|
397,844
|
|
|
99
|
|
Ottawa, Ontario
|
|
50
|
|
355,497
|
|
|
93
|
|
Columbus, Ohio
(1)
|
|
50
|
|
355,220
|
|
|
96
|
|
Texas City, Texas (Galveston/Houston)
(1)
|
|
50
|
|
352,705
|
|
|
99
|
|
National Harbor, Maryland
(1)
|
|
50
|
|
341,156
|
|
|
98
|
|
Cookstown, Ontario
|
|
50
|
|
307,779
|
|
|
98
|
|
Bromont, Quebec
|
|
50
|
|
161,307
|
|
|
72
|
|
Saint-Sauveur, Quebec
(1)
|
|
50
|
|
99,405
|
|
|
96
|
|
Total
|
|
|
|
2,370,913
|
|
|
95
|
(2)
|
(1)
|
Property encumbered by mortgage. See note
5
to the consolidated financial statements for further details of our debt obligations.
|
(2)
|
Excludes the occupancy rate at our Columbus outlet center which opened during the second quarter of 2016 and has not yet stabilized.
|
|
Trailing twelve months ended September 30, 2017
(1)
|
||||||||||||||
|
# of Leases
|
Square Feet
(in 000's)
|
Average
Annual
Straight-line Rent (psf)
(2)
|
Average
Tenant
Allowance (psf)
|
Average Initial Term
(in years)
|
Net Average
Annual
Straight-line Rent (psf)
(3)
|
|||||||||
Re-tenant
|
87
|
|
380
|
|
$
|
34.76
|
|
$
|
55.47
|
|
8.94
|
|
$
|
28.56
|
|
Renewal
|
253
|
|
1,126
|
|
$
|
32.56
|
|
$
|
0.24
|
|
4.50
|
|
$
|
32.51
|
|
|
|
|
|
|
|
|
|||||||||
|
Trailing twelve months ended September 30, 2016
(1)
|
||||||||||||||
|
# of Leases
|
Square Feet
(in 000's)
|
Average
Annual
Straight-line Rent (psf)
(2)
|
Average
Tenant
Allowance (psf)
|
Average Initial Term
(in years)
|
Net Average
Annual
Straight-line Rent (psf)
(3)
|
|||||||||
Re-tenant
|
103
|
|
401
|
|
$
|
41.47
|
|
$
|
57.04
|
|
8.54
|
|
$
|
34.79
|
|
Renewal
|
290
|
|
1,337
|
|
$
|
32.22
|
|
$
|
0.41
|
|
4.71
|
|
$
|
32.13
|
|
(1)
|
Includes information for consolidated portfolio outlet centers owned as of period end date.
|
(2)
|
Includes both minimum base rent and common area maintenance rents.
|
(3)
|
Net average straight-line rent is calculated by dividing the average tenant allowance costs per square foot by the average initial term and subtracting this calculated number from the average straight-line rent per year amount. The average annual straight-line rent disclosed in the table above includes all concessions, abatements and reimbursements of rent to tenants. The average tenant allowance disclosed in the table above includes landlord costs.
|
|
|
2017
|
|
2016
|
|
Increase/(Decrease)
|
||||||
Base rentals from existing properties
|
|
$
|
73,217
|
|
|
$
|
73,523
|
|
|
$
|
(306
|
)
|
Base rentals from new development
|
|
1,978
|
|
|
—
|
|
|
1,978
|
|
|||
Base rentals from acquisitions
|
|
5,294
|
|
|
4,131
|
|
|
1,163
|
|
|||
Base rentals from property disposed
|
|
—
|
|
|
1,134
|
|
|
(1,134
|
)
|
|||
Termination fees
|
|
162
|
|
|
1,450
|
|
|
(1,288
|
)
|
|||
Amortization of above and below market rent adjustments, net
|
|
(302
|
)
|
|
(669
|
)
|
|
367
|
|
|||
|
|
$
|
80,349
|
|
|
$
|
79,569
|
|
|
$
|
780
|
|
|
|
2017
|
|
2016
|
|
Increase/(Decrease)
|
||||||
Percentage rentals from existing properties
|
|
$
|
2,738
|
|
|
$
|
2,698
|
|
|
$
|
40
|
|
Percentage rentals from new development
|
|
99
|
|
|
—
|
|
|
99
|
|
|||
Percentage rentals from acquisitions
|
|
301
|
|
|
285
|
|
|
16
|
|
|||
Percentage rentals from property disposed
|
|
—
|
|
|
12
|
|
|
(12
|
)
|
|||
|
|
$
|
3,138
|
|
|
$
|
2,995
|
|
|
$
|
143
|
|
|
|
2017
|
|
2016
|
|
Increase/(Decrease)
|
||||||
Expense reimbursements from existing properties
|
|
$
|
30,504
|
|
|
$
|
30,538
|
|
|
$
|
(34
|
)
|
Expense reimbursements from new development
|
|
825
|
|
|
49
|
|
|
776
|
|
|||
Expense reimbursements from acquisitions
|
|
2,851
|
|
|
1,952
|
|
|
899
|
|
|||
Expense reimbursements from property disposed
|
|
—
|
|
|
586
|
|
|
(586
|
)
|
|||
|
|
$
|
34,180
|
|
|
$
|
33,125
|
|
|
$
|
1,055
|
|
|
|
2017
|
|
2016
|
|
Increase/(Decrease)
|
||||||
Management and marketing
|
|
$
|
564
|
|
|
$
|
656
|
|
|
$
|
(92
|
)
|
Development and leasing
|
|
20
|
|
|
65
|
|
|
(45
|
)
|
|||
Loan guarantee
|
|
4
|
|
|
85
|
|
|
(81
|
)
|
|||
|
|
$
|
588
|
|
|
$
|
806
|
|
|
$
|
(218
|
)
|
|
|
2017
|
|
2016
|
|
Change
|
||||||
Other income from existing properties
|
|
$
|
2,283
|
|
|
$
|
2,434
|
|
|
$
|
(151
|
)
|
Other income from new developments
|
|
34
|
|
|
62
|
|
|
(28
|
)
|
|||
Other income from acquisitions
|
|
193
|
|
|
146
|
|
|
47
|
|
|||
|
|
$
|
2,510
|
|
|
$
|
2,642
|
|
|
$
|
(132
|
)
|
|
|
2017
|
|
2016
|
|
Increase/(Decrease)
|
||||||
Property operating expenses from existing properties
|
|
$
|
34,315
|
|
|
$
|
34,932
|
|
|
$
|
(617
|
)
|
Property operating expenses from new development
|
|
846
|
|
|
55
|
|
|
791
|
|
|||
Property operating expenses from acquisitions
|
|
2,410
|
|
|
1,673
|
|
|
737
|
|
|||
Property operating expenses from property disposed
|
|
—
|
|
|
782
|
|
|
(782
|
)
|
|||
|
|
$
|
37,571
|
|
|
$
|
37,442
|
|
|
$
|
129
|
|
|
|
2017
|
|
2016
|
|
Increase/(Decrease)
|
||||||
Depreciation and amortization from existing properties
|
|
$
|
25,912
|
|
|
$
|
26,514
|
|
|
$
|
(602
|
)
|
Depreciation and amortization from new development
|
|
1,236
|
|
|
—
|
|
|
1,236
|
|
|||
Depreciation and amortization from acquisitions
|
|
3,828
|
|
|
2,340
|
|
|
1,488
|
|
|||
Depreciation and amortization from properties disposed
|
|
—
|
|
|
351
|
|
|
(351
|
)
|
|||
|
|
$
|
30,976
|
|
|
$
|
29,205
|
|
|
$
|
1,771
|
|
|
|
2017
|
|
2016
|
|
Increase/(Decrease)
|
||||||
Equity in earnings (losses) from existing properties
|
|
$
|
(5,893
|
)
|
|
$
|
(3
|
)
|
|
$
|
(5,890
|
)
|
Equity in earnings from properties previously held in unconsolidated joint ventures
|
|
—
|
|
|
718
|
|
|
(718
|
)
|
|||
|
|
$
|
(5,893
|
)
|
|
$
|
715
|
|
|
$
|
(6,608
|
)
|
|
|
2017
|
|
2016
|
|
Change
|
||||||
Base rentals from existing properties
|
|
$
|
216,954
|
|
|
$
|
217,861
|
|
|
$
|
(907
|
)
|
Base rentals from new development
|
|
5,836
|
|
|
—
|
|
|
5,836
|
|
|||
Base rentals from acquisitions
|
|
16,042
|
|
|
4,131
|
|
|
11,911
|
|
|||
Base rentals from properties disposed
|
|
1,605
|
|
|
3,457
|
|
|
(1,852
|
)
|
|||
Termination fees
|
|
2,796
|
|
|
3,492
|
|
|
(696
|
)
|
|||
Amortization of above and below market rent adjustments, net
|
|
(1,766
|
)
|
|
(1,746
|
)
|
|
(20
|
)
|
|||
|
|
$
|
241,467
|
|
|
$
|
227,195
|
|
|
$
|
14,272
|
|
|
|
2017
|
|
2016
|
|
Increase/(Decrease)
|
||||||
Percentage rentals from existing properties
|
|
$
|
5,998
|
|
|
$
|
7,129
|
|
|
$
|
(1,131
|
)
|
Percentage rentals from new development
|
|
106
|
|
|
—
|
|
|
106
|
|
|||
Percentage rentals from acquisitions
|
|
629
|
|
|
285
|
|
|
344
|
|
|||
Percentage rentals from properties disposed
|
|
65
|
|
|
57
|
|
|
8
|
|
|||
|
|
$
|
6,798
|
|
|
$
|
7,471
|
|
|
$
|
(673
|
)
|
|
|
2017
|
|
2016
|
|
Change
|
||||||
Expense reimbursements from existing properties
|
|
$
|
93,141
|
|
|
$
|
93,296
|
|
|
$
|
(155
|
)
|
Expense reimbursements from new development
|
|
2,856
|
|
|
156
|
|
|
2,700
|
|
|||
Expense reimbursements from acquisitions
|
|
8,052
|
|
|
1,952
|
|
|
6,100
|
|
|||
Expense reimbursements from properties disposed
|
|
752
|
|
|
1,717
|
|
|
(965
|
)
|
|||
|
|
$
|
104,801
|
|
|
$
|
97,121
|
|
|
$
|
7,680
|
|
|
|
2017
|
|
2016
|
|
Change
|
||||||
Management and marketing
|
|
$
|
1,676
|
|
|
$
|
2,199
|
|
|
$
|
(523
|
)
|
Development and leasing
|
|
87
|
|
|
611
|
|
|
(524
|
)
|
|||
Loan guarantee
|
|
13
|
|
|
449
|
|
|
(436
|
)
|
|||
|
|
$
|
1,776
|
|
|
$
|
3,259
|
|
|
$
|
(1,483
|
)
|
|
|
2017
|
|
2016
|
|
Change
|
||||||
Other income from existing properties
|
|
$
|
6,043
|
|
|
$
|
6,004
|
|
|
$
|
39
|
|
Other income from new development
|
|
148
|
|
|
—
|
|
|
148
|
|
|||
Other income from acquisitions
|
|
613
|
|
|
162
|
|
|
451
|
|
|||
Other income from properties disposed
|
|
101
|
|
|
63
|
|
|
38
|
|
|||
|
|
$
|
6,905
|
|
|
$
|
6,229
|
|
|
$
|
676
|
|
|
|
2017
|
|
2016
|
|
Change
|
||||||
Property operating expenses from existing properties
|
|
$
|
104,135
|
|
|
$
|
106,147
|
|
|
$
|
(2,012
|
)
|
Property operating expenses from new development
|
|
3,139
|
|
|
163
|
|
|
2,976
|
|
|||
Property operating expenses from acquisitions
|
|
6,801
|
|
|
1,689
|
|
|
5,112
|
|
|||
Property operating expenses from properties disposed
|
|
999
|
|
|
2,329
|
|
|
(1,330
|
)
|
|||
|
|
$
|
115,074
|
|
|
$
|
110,328
|
|
|
$
|
4,746
|
|
|
|
2017
|
|
2016
|
|
Change
|
||||||
Depreciation and amortization expenses from existing properties
|
|
$
|
79,537
|
|
|
$
|
78,690
|
|
|
$
|
847
|
|
Depreciation and amortization expenses from new development
|
|
3,524
|
|
|
—
|
|
|
3,524
|
|
|||
Depreciation and amortization expenses from acquisitions
|
|
11,437
|
|
|
2,340
|
|
|
9,097
|
|
|||
Depreciation and amortization from properties disposed
|
|
677
|
|
|
1,048
|
|
|
(371
|
)
|
|||
|
|
$
|
95,175
|
|
|
$
|
82,078
|
|
|
$
|
13,097
|
|
|
|
2017
|
|
2016
|
|
Change
|
||||||
Equity in earnings (losses) from existing properties
|
|
$
|
(2,293
|
)
|
|
$
|
3,671
|
|
|
$
|
(5,964
|
)
|
Equity in earnings from new development
|
|
1,092
|
|
|
366
|
|
|
726
|
|
|||
Equity in earnings from properties previously held in unconsolidated joint ventures
|
|
—
|
|
|
3,643
|
|
|
(3,643
|
)
|
|||
|
|
$
|
(1,201
|
)
|
|
$
|
7,680
|
|
|
$
|
(8,881
|
)
|
|
|
Nine months ended September 30,
|
|
|
||||||||
|
|
2017
|
|
2016
|
|
Change
|
||||||
Net cash provided by operating activities
|
|
$
|
181,530
|
|
|
$
|
177,723
|
|
|
$
|
3,807
|
|
Net cash used in investing activities
|
|
(89,052
|
)
|
|
(39,490
|
)
|
|
(49,562
|
)
|
|||
Net cash used in financing activities
|
|
(95,954
|
)
|
|
(134,464
|
)
|
|
38,510
|
|
|||
Effect of foreign currency rate changes on cash and equivalents
|
|
(54
|
)
|
|
532
|
|
|
(586
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
|
$
|
(3,530
|
)
|
|
$
|
4,301
|
|
|
$
|
(7,831
|
)
|
|
|
Nine months ended September 30,
|
|
|
||||||||
|
|
2017
|
|
2016
|
|
Change
|
||||||
Capital expenditures analysis:
|
|
|
|
|
|
|
||||||
New center developments
|
|
$
|
87,376
|
|
|
$
|
74,441
|
|
|
$
|
12,935
|
|
Major center renovations
|
|
13,813
|
|
|
13,908
|
|
|
(95
|
)
|
|||
Second generation tenant allowances
|
|
15,815
|
|
|
6,963
|
|
|
8,852
|
|
|||
Other capital expenditures
|
|
19,791
|
|
|
8,576
|
|
|
11,215
|
|
|||
|
|
136,795
|
|
|
103,888
|
|
|
32,907
|
|
|||
Conversion from accrual to cash basis
|
|
(4,183
|
)
|
|
8,325
|
|
|
(12,508
|
)
|
|||
Additions to rental property-cash basis
|
|
$
|
132,612
|
|
|
$
|
112,213
|
|
|
$
|
20,399
|
|
•
|
New center development expenditures, which include first generation tenant allowances, relate to construction expenditures for our Fort Worth, Daytona Beach, Lancaster and Tilton outlet centers in the 2017 period. The 2016 period included new center development expenditures for our Daytona Beach, Fort Worth, Southaven, and San Marcos outlet centers.
|
•
|
Major center renovations in both the 2017 and 2016 periods included construction activities at our Riverhead and our Rehoboth Beach outlet centers. The 2016 period also included renovations at our Howell outlet center while the 2017 period also included renovations at our Myrtle Beach 17 outlet center. We expect to spend approximately $7.7 million for the remainder of 2017 to complete our current renovation projects.
|
•
|
The increase in other capital expenditures in the 2017 period is primarily due to the installation of solar panels at several of our outlet centers and tenant interior build outs.
|
Project
|
|
Approximate square feet
(in 000's)
|
|
Projected Total Net Cost per Square Foot
(in dollars) |
|
Projected Total Net Cost
(in millions) |
|
Costs Incurred to Date
(in millions) |
|
Projected Opening
|
|||||||
New development:
|
|
|
|
|
|
|
|
|
|
|
|||||||
Fort Worth
|
|
352
|
|
|
$
|
256
|
|
|
$
|
90.2
|
|
|
$
|
74.7
|
|
|
October 2017
|
Senior unsecured notes financial covenants
|
Required
|
Actual
|
|
Total consolidated debt to adjusted total assets
|
<60%
|
52
|
%
|
Total secured debt to adjusted total assets
|
<40%
|
5
|
%
|
Total unencumbered assets to unsecured debt
|
>150%
|
184
|
%
|
Joint Venture
|
|
Outlet Center Location
|
|
Ownership %
|
|
Square Feet
(in 000's)
|
|
Carrying Value of Investment (in millions)
|
||||
Columbus
|
|
Columbus, OH
|
|
50.0
|
%
|
|
355
|
|
|
$
|
6.8
|
|
National Harbor
|
|
National Harbor, MD
|
|
50.0
|
%
|
|
341
|
|
|
2.4
|
|
|
RioCan Canada
|
|
Various
|
|
50.0
|
%
|
|
924
|
|
|
116.6
|
|
|
Investments included in total assets
|
|
|
|
|
|
$
|
125.8
|
|
||||
|
|
|
|
|
|
|
|
|
||||
Charlotte
(1)
|
|
Charlotte, NC
|
|
50.0
|
%
|
|
398
|
|
|
$
|
(3.6
|
)
|
Galveston/Houston
(1)
|
|
Texas City, TX
|
|
50.0
|
%
|
|
353
|
|
|
(12.5
|
)
|
|
Investments included in other liabilities
|
|
|
|
|
|
$
|
(16.1
|
)
|
(1)
|
The negative carrying value is due to the distributions of proceeds from mortgage loans and quarterly distributions of excess cash flow exceeding the original contributions from the partners.
|
Joint Venture
|
|
Total Joint
Venture Debt |
|
Maturity Date
|
|
Interest Rate
|
|
Percent Guaranteed by the Operating Partnership
|
|
Maximum Guaranteed Amount by the Company
|
|||||
Charlotte
|
|
$
|
90.0
|
|
|
November 2018
|
|
LIBOR + 1.45%
|
|
5.0
|
%
|
|
$
|
4.5
|
|
Columbus
|
|
85.0
|
|
|
November 2019
|
|
LIBOR + 1.65%
|
|
7.5
|
%
|
|
6.4
|
|
||
Galveston/Houston
(1)
|
|
80.0
|
|
|
July 2020
|
|
LIBOR + 1.65%
|
|
12.5
|
%
|
|
10.0
|
|
||
National Harbor
(2)
|
|
87.0
|
|
|
November 2019
|
|
LIBOR + 1.65%
|
|
10.0
|
%
|
|
8.7
|
|
||
RioCan Canada
(3)
|
|
11.4
|
|
|
May 2020
|
|
5.75%
|
|
28.1
|
%
|
|
3.2
|
|
||
Debt origination costs
|
|
(2.0
|
)
|
|
|
|
|
|
|
|
|
||||
|
|
$
|
351.4
|
|
|
|
|
|
|
|
|
$
|
32.8
|
|
(1)
|
In July, the joint venture amended and restated the initial construction loan to increase the amount available to borrow from
$70.0 million
to
$80.0 million
and extended the maturity date until July 2020 with
two
one
-year options. The amended and restated loan also changed the interest rate from LIBOR +
1.50%
to an interest rate of LIBOR +
1.65%
. At the closing of the amendment, the joint venture distributed approximately
$14.5 million
equally between the partners.
|
(2)
|
100% completion guaranty; 10% principal guaranty.
|
(3)
|
The joint venture debt amount includes premium of approximately
$405,000
.
|
|
|
Three months ended
|
|
Nine months ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Fee:
|
|
|
|
|
|
|
|
|
|
|
||||||
Management and marketing
|
|
$
|
564
|
|
|
$
|
656
|
|
|
1,676
|
|
|
2,199
|
|
||
Development and leasing
|
|
20
|
|
|
65
|
|
|
$
|
87
|
|
|
$
|
611
|
|
||
Loan Guarantee
|
|
4
|
|
|
85
|
|
|
13
|
|
|
449
|
|
||||
Total Fees
|
|
$
|
588
|
|
|
$
|
806
|
|
|
$
|
1,776
|
|
|
$
|
3,259
|
|
•
|
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.
|
|
|
Three months ended
|
|
Nine months ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income (loss)
|
|
$
|
(16,034
|
)
|
|
$
|
72,774
|
|
|
$
|
38,427
|
|
|
$
|
178,693
|
|
Adjusted for:
|
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization of real estate assets - consolidated
|
|
30,396
|
|
|
28,850
|
|
|
93,634
|
|
|
80,992
|
|
||||
Depreciation and amortization of real estate assets - unconsolidated joint ventures
|
|
3,583
|
|
|
4,325
|
|
|
10,971
|
|
|
15,472
|
|
||||
Impairment charges - unconsolidated joint ventures
|
|
9,021
|
|
|
2,919
|
|
|
9,021
|
|
|
2,919
|
|
||||
Gain on sale of assets
|
|
—
|
|
|
—
|
|
|
(6,943
|
)
|
|
(4,887
|
)
|
||||
Gain on previously held interests in acquired joint ventures
|
|
—
|
|
|
(46,258
|
)
|
|
—
|
|
|
(95,516
|
)
|
||||
FFO
|
|
26,966
|
|
|
62,610
|
|
|
145,110
|
|
|
177,673
|
|
||||
FFO attributable to noncontrolling interests in other consolidated partnerships
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(62
|
)
|
||||
Allocation of earnings to participating securities
|
|
(306
|
)
|
|
(539
|
)
|
|
(1,346
|
)
|
|
(1,675
|
)
|
||||
FFO available to common shareholders
(1)
|
|
$
|
26,660
|
|
|
$
|
62,068
|
|
|
$
|
143,764
|
|
|
$
|
175,936
|
|
As further adjusted for:
|
|
|
|
|
|
|
|
|
||||||||
Compensation related to director and executive officer terminations
(2)
|
|
—
|
|
|
887
|
|
|
—
|
|
|
1,180
|
|
||||
Acquisition costs
|
|
—
|
|
|
487
|
|
|
—
|
|
|
487
|
|
||||
Demolition costs
|
|
—
|
|
|
259
|
|
|
—
|
|
|
441
|
|
||||
Gain on sale of outparcel
|
|
—
|
|
|
(1,418
|
)
|
|
—
|
|
|
(1,418
|
)
|
||||
Abandoned pre-development costs
|
|
(99
|
)
|
|
—
|
|
|
528
|
|
|
—
|
|
||||
Make-whole premium due to early extinguishment of debt
(3)
|
|
34,143
|
|
|
—
|
|
|
34,143
|
|
|
—
|
|
||||
Write-off of debt discount and debt origination costs due to early extinguishment of debt
(3)
|
|
1,483
|
|
|
—
|
|
|
1,483
|
|
|
882
|
|
||||
Impact of above adjustments to the allocation of earnings to participating securities
|
|
(249
|
)
|
|
(2
|
)
|
|
(254
|
)
|
|
(15
|
)
|
||||
AFFO available to common shareholders
(1)
|
|
$
|
61,938
|
|
|
$
|
62,281
|
|
|
$
|
179,664
|
|
|
$
|
177,493
|
|
FFO available to common shareholders per share - diluted
(1)
|
|
$
|
0.27
|
|
|
$
|
0.62
|
|
|
$
|
1.44
|
|
|
$
|
1.75
|
|
AFFO available to common shareholders per share - diluted
(1)
|
|
$
|
0.63
|
|
|
$
|
0.62
|
|
|
$
|
1.80
|
|
|
$
|
1.76
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted Average Shares:
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted average common shares
|
|
93,923
|
|
|
95,156
|
|
|
94,781
|
|
|
95,075
|
|
||||
Effect of notional units
|
|
—
|
|
|
426
|
|
|
—
|
|
|
393
|
|
||||
Effect of outstanding options and restricted common shares
|
|
—
|
|
|
90
|
|
|
23
|
|
|
68
|
|
||||
Diluted weighted average common shares (for earnings per share computations)
|
|
93,923
|
|
|
95,672
|
|
|
94,804
|
|
|
95,536
|
|
||||
Exchangeable operating partnership units
|
|
5,028
|
|
|
5,053
|
|
|
5,028
|
|
|
5,053
|
|
||||
Diluted weighted average common shares (for FFO and AFFO per share computations)
(1)
|
|
98,951
|
|
|
100,725
|
|
|
99,832
|
|
|
100,589
|
|
(1)
|
Assumes the Class A common limited partnership units of the Operating Partnership held by the noncontrolling interests are exchanged for common shares of the Company. Each Class A common limited partnership unit is exchangeable for one of the Company's common shares, subject to certain limitations to preserve the Company's REIT status.
|
(2)
|
Represents cash severance and accelerated vesting of restricted shares associated with the departure of an officer in August 2016 and the accelerated vesting of restricted shares due to the death of a director in February 2016.
|
(3)
|
Due to charges related to the redemption of our
$300.0 million
6.125%
senior notes due 2020 and the January 28, 2016 early repayment of the $150.0 million mortgage secured by the Deer Park property, which was scheduled to mature August 30, 2018.
|
|
|
Three months ended
|
|
Nine months ended
|
||||||||||||
|
|
September 30,
|
|
September 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income (loss)
|
|
$
|
(16,034
|
)
|
|
$
|
72,774
|
|
|
$
|
38,427
|
|
|
$
|
178,693
|
|
Adjusted to exclude:
|
|
|
|
|
|
|
|
|
||||||||
Equity in (earnings) losses of unconsolidated joint ventures
|
|
5,893
|
|
|
(715
|
)
|
|
1,201
|
|
|
(7,680
|
)
|
||||
Interest expense
|
|
16,489
|
|
|
15,516
|
|
|
49,496
|
|
|
44,200
|
|
||||
Gain on sale of assets
|
|
—
|
|
|
(1,418
|
)
|
|
(6,943
|
)
|
|
(6,305
|
)
|
||||
Gain on previously held interests in acquired joint ventures
|
|
—
|
|
|
(46,258
|
)
|
|
—
|
|
|
(95,516
|
)
|
||||
Loss on early extinguishment of debt
|
|
35,626
|
|
|
—
|
|
|
35,626
|
|
|
—
|
|
||||
Other non-operating (income) expense
|
|
(591
|
)
|
|
(24
|
)
|
|
(683
|
)
|
|
(378
|
)
|
||||
Depreciation and amortization
|
|
30,976
|
|
|
29,205
|
|
|
95,175
|
|
|
82,078
|
|
||||
Other non-property (income) expenses
|
|
372
|
|
|
(47
|
)
|
|
993
|
|
|
(437
|
)
|
||||
Abandoned pre-development costs
|
|
(99
|
)
|
|
—
|
|
|
528
|
|
|
—
|
|
||||
Acquisition costs
|
|
—
|
|
|
487
|
|
|
—
|
|
|
487
|
|
||||
Demolition Costs
|
|
—
|
|
|
259
|
|
|
—
|
|
|
441
|
|
||||
Corporate general and administrative expenses
|
|
11,020
|
|
|
12,076
|
|
|
33,499
|
|
|
34,989
|
|
||||
Non-cash adjustments
(1)
|
|
(1,020
|
)
|
|
(967
|
)
|
|
(2,580
|
)
|
|
(2,938
|
)
|
||||
Termination rents
|
|
(162
|
)
|
|
(1,450
|
)
|
|
(2,796
|
)
|
|
(3,491
|
)
|
||||
Portfolio NOI
|
|
82,470
|
|
|
79,438
|
|
|
241,943
|
|
|
224,143
|
|
||||
Non-same center NOI
(2)
|
|
(9,813
|
)
|
|
(7,320
|
)
|
|
(29,643
|
)
|
|
(13,514
|
)
|
||||
Same Center NOI
|
|
$
|
72,657
|
|
|
$
|
72,118
|
|
|
$
|
212,300
|
|
|
$
|
210,629
|
|
(1)
|
Non-cash items include straight-line rent, net above and below market rent amortization and gains or losses on outparcel sales, as applicable.
|
(2)
|
Excluded from Same Center NOI:
|
Outlet centers opened:
|
|
Outlet centers sold:
|
|
Outlet centers acquired:
|
|
Outlet center expansions:
|
||||
Daytona Beach
|
November 2016
|
|
Fort Myers
|
January 2016
|
|
Glendale (Westgate)
|
June 2016
|
|
Lancaster
|
September 2017
|
|
|
|
Westbrook
|
May 2017
|
|
Savannah
|
August 2016
|
|
|
|
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
||
Fair value of debt
|
|
$
|
1,801,655
|
|
|
$
|
1,704,644
|
|
Recorded value of debt
|
|
$
|
1,773,981
|
|
|
$
|
1,687,866
|
|
Period
|
|
Total number of shares purchased
|
|
Average price paid per share
|
|
Total number of shares purchased as part of publicly announced plans or programs
|
|
Approximate dollar value of shares that may yet be purchased under the plans or programs
(in millions)
|
||||||
July 1, 2017 to July 31, 2017
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
85.7
|
|
August 1, 2017 to August 31, 2017
|
|
413,604
|
|
|
24.18
|
|
|
413,604
|
|
|
75.7
|
|
||
September 1, 2017 to September 30, 2017
|
|
—
|
|
|
—
|
|
|
—
|
|
|
75.7
|
|
||
Total
|
|
413,604
|
|
|
$
|
24.18
|
|
|
413,604
|
|
|
$
|
75.7
|
|
TANGER FACTORY OUTLET CENTERS, INC.
|
|
By:
|
/s/ James F. Williams
|
|
James F. Williams
|
|
Senior Vice President and Chief Financial Officer
|
|
|
TANGER PROPERTIES LIMITED PARTNERSHIP
|
|
By: TANGER GP TRUST, its sole general partner
|
|
By:
|
/s/ James F. Williams
|
|
James F. Williams
|
|
Vice President and Treasurer (Principal Financial and Accounting Officer)
|
1 Year Tanger Chart |
1 Month Tanger Chart |
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