GREENSBORO, N.C., Aug. 5, 2020 /PRNewswire/ -- Tanger Factory
Outlet Centers, Inc. (NYSE:SKT) today reported financial
results for the three and six months ended June 30, 2020 and
operating metrics for the second quarter of 2020 and provided a
COVID-19 update.
"We continue to recover from the government-mandated store
closures that started in mid-March. Almost all stores have now
reopened and our cash flow was positive in July. Tanger's liquidity
position remains strong, with cash on hand and line of credit
capacity totaling more than half a billion dollars at the end of
July," said Steven B. Tanger, Chief
Executive Officer. "In light of changing consumer behavior, we have
implemented new offerings including Tanger Virtual
ShopperTM and curbside pick-up programs. We believe
these innovations will become durable components of our business
going forward. We are pleased to see shoppers return to our
centers, with traffic rebounding to approximately 85% of prior year
levels over the last six weeks."
"Rent collections were substantially better for July than for
the second quarter given our proactive rent deferral strategy to
address COVID-19 related store closures. However, there is
continued uncertainty around the magnitude and duration of the
pandemic and subsequent tenant financial challenges. Recapturing
space from underperforming tenants presents challenges, but also
provides a unique opportunity to elevate our tenant mix. We are
encouraged by the new tenants we have recently added, including
several upscale or first-in-portfolio brands."
"We believe the outlet distribution channel continues to be
critically important for many retailers. We have the advantage of
open-air properties that provide an inviting place to shop, and
tenants enjoy a relatively low cost of occupancy," Mr. Tanger
added.
Second Quarter Results
- Net loss available to common shareholders was $0.25 per share, or $22.9
million, compared to net income available to common
shareholders of $0.15 per share, or
$13.6 million, for the prior year
period. The current year period was heavily impacted by the
COVID-19 pandemic and also includes a $3.1
million, or $0.03 per share,
non-cash charge related to the Company's share of an impairment of
an asset in its Canadian unconsolidated joint venture. The prior
year period included $4.4 million, or
$0.04 per share, in general and
administrative expense for the accelerated recognition of
compensation cost related to the retirement of an executive
officer.
- Funds From Operations ("FFO") available to common shareholders
was $0.10 per share, or $10.0 million, compared to $0.52 per share, or $51.5
million, for the prior year period.
- Core Funds From Operations ("Core FFO") available to common
shareholders was $0.10 per share, or
$10.0 million, compared to
$0.57 per share, or $55.8 million, for the prior year period. Core
FFO, which excludes certain items that the Company does not
consider indicative of its ongoing operating performance, excludes
the compensation cost discussed above for the prior year
period.
Year-to-Date Results
- Net loss available to common shareholders was $0.54 per share, or $50.3
million, compared to net income available to common
shareholders of $0.81 per share, or
$75.3 million, for the prior year.
The current year period was heavily impacted by the COVID-19
pandemic and also included non-cash charges totaling $48.8 million, or $0.50 per share, related to the impairment of the
Canadian joint venture asset discussed above and the Company's
outlet center in Manshantucket, Connecticut (Foxwoods). The prior year period
is inclusive of a gain on the sale of four outlet centers totaling
$43.4 million, or $0.44 per share and $4.4
million, or $0.04 per share,
of general and administrative expense discussed above.
- FFO available to common shareholders was $0.60 per share, or $58.8
million, compared to $1.09 per
share, or $107.4 million, for the
prior year.
- Core FFO available to common shareholders was $0.60 per share, or $58.8
million, compared to $1.14 per
share, or $111.7 million, for the
prior year. In the prior year period, Core FFO excludes the
compensation cost discussed above.
- FFO and Core FFO (previously referred to as Adjusted Funds From
Operations or AFFO) are widely accepted supplemental non-GAAP
financial measures used in the real estate industry to measure and
compare the operating performance of real estate companies. A
complete reconciliation containing adjustments from GAAP net income
(loss) to FFO and Core FFO, if applicable, are included in this
release. Per share amounts for net income (loss), FFO and Core FFO
are on a diluted basis.
Balance Sheet and Liquidity
As previously announced, the Company has taken several steps to
increase liquidity, preserve financial flexibility and meet its
obligations for a sustained period of time until there is more
clarity regarding the impact and duration of the pandemic and
subsequent tenant bankruptcy announcements. These steps are
discussed further in the COVID-19 Update section below.
As of July 31, 2020, the Company's
total liquidity was approximately $564
million, including cash and cash equivalents on the
Company's balance sheet and unused capacity under its lines of
credit. During the second quarter of 2020, Tanger repaid
$200 million of the outstanding
balance under its $600 million
unsecured lines of credit, and in July, repaid an additional
$320 million.
Other than its unsecured lines of credit, which mature in
October of 2021 and may be extended for one additional year, Tanger
has no significant debt maturities until December 2023.
On June 11, 2020, Tanger completed
amendments to the debt agreements for its lines of credit and bank
term loan, primarily to improve future covenant flexibility. Refer
to the Form 8-K filed with the Securities and Exchange Commission
on June 16, 2020 for further details,
including the amendments in their entirety.
As of June 30, 2020:
- The Company remained in compliance with all of its debt
covenants
- Weighted average interest rate was 3.1% and weighted average
term to maturity of outstanding consolidated debt, including
extension options, was approximately 4.4 years
- Approximately 94% of the Company's consolidated square footage
was unencumbered by mortgages
- Interest coverage ratio (calculated as Adjusted EBITDA divided
by interest expense) was 2.7 times for the first half of 2020 and
3.6 times for the trailing twelve months ended June 30, 2020
- Total outstanding floating rate debt was approximately
$411 million, representing
approximately 21% of total consolidated debt outstanding or 15% of
total enterprise value; reflecting the July line of credit
repayments, floating rate debt represented 6% of total debt
outstanding and 4% of total enterprise value
- FAD payout ratio was 140% for the first half of 2020, which
does not reflect the Board's decision to temporarily suspend normal
distributions following the payment of the May dividend
Tanger did not repurchase any common shares during the first
half of 2020. As previously announced, the recent amendments to
debt agreements prohibit share repurchases during the twelve-month
surge leverage period beginning July 1,
2020.
Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization ("Adjusted EBITDA") and Funds Available for
Distribution ("FAD") are supplemental non-GAAP financial measures
of operating performance. Definitions of Adjusted EBITDA and FAD
and reconciliations to the nearest comparable GAAP measures are
included in this release.
Operating Metrics
The Company's key portfolio results were as follows:
- Consolidated portfolio occupancy rate was 93.8% on June 30, 2020, compared to 94.3% on March 31, 2020 and 96.0% on June 30, 2019
- Blended average rental rates decreased 1.1% on a straight-line
basis and 6.5% on a cash basis for all renewals and re-tenanted
leases that commenced during the trailing twelve months ended
June 30, 2020
- Lease termination fees totaled $1.7
million for the first half of 2020, including $1.5 million for the second quarter, compared to
$1.4 million for the first half of
2019, including $0.3 million for the
second quarter
- Same center net operating income ("Same Center NOI") for the
consolidated portfolio decreased $39.0
million for the quarter and $41.7
million year to date, largely due to the impact of the
COVID-19 pandemic during the quarter, including the write-off of
rental revenues of $33.9 million
(excluding straight-line rents), partially offset by a reduction in
property operating expense of $10.0
million
Same Center NOI is a supplemental non-GAAP financial measure of
operating performance. A complete definition of Same Center NOI and
a reconciliation to the nearest comparable GAAP measure is included
in this release.
Leasing Activity
Total commenced leases for the trailing twelve months ended
June 30, 2020 that were renewed or re-leased for all terms
included 296 leases, totaling over 1.4 million square feet.
As of June 30, 2020, Tanger had lease renewals executed or
in process for 67.5% of the space in the consolidated portfolio
scheduled to expire during 2020 compared to 72.6% of the space
scheduled to expire during 2019 that was executed or in process as
of June 30, 2019.
Tanger recaptured approximately 380,000 square feet within its
consolidated portfolio during the first half of 2020 related to
bankruptcies and brand-wide restructurings by retailers, including
48,000 square feet in the second quarter. During the first half of
2019, approximately 187,000 square feet were recaptured, including
105,000 square feet during the second quarter. The Company
anticipates additional store closures and lease adjustments related
to recent tenant bankruptcy filings and restructuring
announcements.
Tanger Virtual Shopper™
During the quarter, Tanger launched the Tanger Virtual
Shopper™ program, which serves to drive in-store
sales for brands and retailers, functioning as a digital,
service-minded extension of the brick-and-mortar shopping
experience. Guests can shop remotely for their favorite brands,
styles and outlet value deals across multiple retailers via on-site
shopping specialists and stylists and can access any brand in the
Tanger portfolio. Orders can be picked up curbside or shipped to
home. The program is often generating incremental on-site
visits.
COVID-19 Update
- Guidance - Due to limited visibility regarding the
duration and magnitude of the pandemic and subsequent tenant
bankruptcy filings, Tanger previously withdrew its guidance and is
not providing updated guidance at this time.
- Cost Reductions - During the second quarter, the Company
reduced cash outflows by approximately $11
million, including $1 million
of general and administrative and $10
million of property operating expense. In addition, Tanger
deferred its Nashville
pre-development-stage project and certain other planned capital
expenditures.
- Store Reopenings - As of July 31,
2020, 95% of total occupied stores in the Company's
consolidated portfolio had reopened, representing 95% of leased
square footage and 95% of annualized base rent. By June 15, 2020, in-store shopping for
non-essential retail was allowed in every Tanger market. Reopened
stores as a percentage of total occupied stores improved over time
as more mandates were lifted, from 1% on April 6, 2020 to 56% on June 3, 2020 to 72% on June 14, 2020.
Tanger Centers have not closed
throughout the pandemic, but have been operating under reduced
hours since late April when the first stores began to reopen.
Tanger's centers may experience additional short-term store
closures in the near term as retailers implement additional safety
protocols at specific locations impacted by exposure to
COVID-19.
- Rent Collections - Collections were markedly better for
July than for second quarter rents. During the month of July, the
Company collected total rent receipts of approximately $44.8 million, which exceeds its estimated
average monthly cash outflows of approximately $24 million. As of July
31, 2020, Tanger had collected 72% of July rents billed, and
79% of net July rents recognized before reserves and straight-line
rent adjustments.
In late March, Tanger offered all tenants in its consolidated
portfolio the option to defer 100% of April and May rents interest
free, payable in equal installments due in January and February of
2021 as part of a strategy to proactively address COVID-19 related
store closures by working with its tenant partners to reach a
financial resolution to position both parties for long-term growth.
The Company currently expects to collect approximately 43% of rents
billed for the second quarter, to defer 26% and continues to
negotiate 6%. The Company reserves all rights under its lease
agreements and will pursue legal remedies to collect rent as
appropriate.
During the quarter, Tanger wrote off 25% of second quarter rents,
including 9% related to tenant bankruptcies, 2% related to other
uncollectible accounts due to financial weakness and 14% related to
one-time concessions in exchange for landlord-favorable amendments
to lease structure. In addition, Tanger recorded a $9.7 million reserve for a portion of deferred
and under negotiation billings that are expected to potentially
become uncollectible in future periods. Further, the Company
recognized a write-off of approximately $3.7
million in straight-line rents associated with bankruptcies
and uncollectible accounts.
The tables below summarize the Company's current collection status
for second quarter rents, as well as the impact to rental revenues
recognized during the three months ended June 30, 2020 (in thousands).
|
2Q
Rents Billed (1)
|
% of
Billed
|
% of Net Rents
Recognized
Before Reserves
& Straight-line
Adjustments
|
Collection
Status (as of July 31, 2020)
|
|
|
|
Paid
|
$
|
32,580
|
|
33
|
%
|
45
|
%
|
Expected
|
9,788
|
|
10
|
%
|
13
|
%
|
Payment received
or expected
|
$
|
42,368
|
|
43
|
%
|
58
|
%
|
|
|
|
|
Deferred
|
25,558
|
|
26
|
%
|
35
|
%
|
Under
negotiation
|
5,389
|
|
6
|
%
|
7
|
%
|
Deferred or under
negotiation
|
$
|
30,947
|
|
32
|
%
|
42
|
%
|
|
|
|
|
Net rents
recognized before reserves & straight-line
adjustments
|
$
|
73,315
|
|
75
|
%
|
100
|
%
|
|
|
|
|
One-time rent
concessions in exchange for landlord-favorable amendments to lease
structure
|
13,852
|
|
14
|
%
|
|
Bankruptcy related,
primarily pre-petition rents
|
8,894
|
|
9
|
%
|
|
At risk due to tenant
financial weakness
|
1,447
|
|
2
|
%
|
|
Do not expect to
collect (written off in 2Q)
|
$
|
24,193
|
|
25
|
%
|
|
|
|
|
|
Total rents
billed
|
$
|
97,508
|
|
100
|
%
|
|
|
(1) Excludes variable
revenue which is derived from tenant sales and lease termination
fees.
|
|
|
Written
Off
|
Reserved
|
Total
Impact
|
Rental Revenue
Impact
|
|
|
|
Base
rentals
|
$
|
9,697
|
|
$
|
6,760
|
|
$
|
16,457
|
|
Tenant
reimbursements
|
4,155
|
|
2,897
|
|
7,052
|
|
Uncollectible tenant
rents
|
10,341
|
|
—
|
|
10,341
|
|
|
|
|
|
Total before
straight-line rent adjustments
|
$
|
24,193
|
|
$
|
9,657
|
|
$
|
33,850
|
|
|
|
|
|
Straight-line rent
adjustments
|
3,726
|
|
—
|
|
3,726
|
|
|
|
|
|
Total rental
revenues impact
|
$
|
27,919
|
|
$
|
9,657
|
|
$
|
37,576
|
|
- Community Support - Throughout the pandemic, Tanger
Outlet Centers have been used for Red Cross blood drives, food
collection sites, curbside food pickup and as staging areas for law
enforcement and emergency medical services. In an effort to provide
a healthy environment for its team members, tenants, shoppers and
communities, Tanger has taken measures operationally to comply with
applicable public health guidelines, including frequent cleaning of
common areas and other high-touch spaces, the closure of children's
play areas and other interactive features, the use of personal
protective equipment by the Company's customer service staff as
well as third party maintenance, janitorial and security staff and
assistance for retailers with managing social distancing guidelines
when lines extend out of stores and into outlet center common
areas.
Board Update
On July 20, 2020, Tanger's Board
of Directors increased the number of directors from seven to eight
and elected Stephen Yalof, the
Company's President and Chief Operating Officer, to the Board per
the terms of his employment agreement. Mr. Yalof, who will succeed
Steven Tanger as Chief Executive
Officer on January 1, 2021, will not
be paid any director fees for his services as a director.
Dividends
Given the uncertainty related to the pandemic's near and
potential long-term impact, in May, the Company's Board of
Directors temporarily suspended dividend distributions to conserve
approximately $35 million in cash per
quarter and preserve the Company's balance sheet strength and
flexibility. The Board will continue to evaluate the potential for
future dividend distributions on a quarterly basis. Tanger intends
to remain in compliance with REIT taxable income distribution
requirements for the 2020 tax year.
Second Quarter 2020 Conference Call
Tanger will host a conference call to discuss its second quarter
2020 results for analysts, investors and other interested parties
on Thursday, August 6, 2020, at 8:30
a.m. Eastern Time. To access the conference call, listeners
should dial 1-888-317-6016 and request to join the Tanger Factory
Outlets Centers, Inc. SKT Call. Alternatively, a live audio webcast
of this call will be available to the public on Tanger's Investor
Relations website, investors.tangeroutlets.com, hosted by S&P
Global Market Intelligence. A telephone replay of the call will be
available from August 6, 2020 at 11:00
a.m. through August 20, 2020 at 11:59 p.m. by dialing 1-877-344-7529, replay
access code # 10145527. An online archive of the webcast will also
be available through August 20, 2020.
About Tanger Factory Outlet Centers, Inc.
Tanger Factory Outlet Centers, Inc. (NYSE: SKT), is a
publicly-traded REIT headquartered in Greensboro, North Carolina that presently
operates and owns, or has an ownership interest in, a portfolio of
39 upscale outlet shopping centers. Tanger's operating properties
are located in 20 states and in Canada, totaling approximately 14.3 million
square feet, leased to over 2,800 stores which are operated by more
than 510 different brand name companies. The Company has more than
39 years of experience in the outlet industry. Tanger Outlet
Centers continue to attract more than 181 million visitors
annually. Tanger is furnishing a Form 8-K with the Securities and
Exchange Commission ("SEC") that includes a supplemental
information package for the quarter ended June 30, 2020. For
more information on Tanger Outlet Centers, call 1-800-4TANGER or
visit the Company's website at www.tangeroutlets.com.
Safe Harbor Statement
This news release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. The Company intends such forward-looking statements to be
covered by the safe harbor provisions for forward-looking
statements contained in the Private Securities Litigation Reform
Act of 1995 and includes this statement for purposes of complying
with the safe harbor provisions. Forward-looking statements, which
are based on certain assumptions and describe the Company's future
plans, strategies and expectations, are generally identifiable by
use of the words "believe," "expect," "intend," "anticipate,"
"estimate," "project," "will," "forecast" or similar expressions,
and include the Company's expectations regarding the impact of the
COVID-19 pandemic on the Company's business, financial results and
financial condition, expectations regarding rent collections, the
financial condition of the Company's tenants, its leasing strategy
and value proposition to retailers, occupancy and rent concessions,
marketing programs, uses of capital, liquidity, dividend payments,
cash flows, filling vacant space and share repurchases.
You should not rely on forward-looking statements since they
involve known and unknown risks, uncertainties and other important
factors which are, in some cases, beyond our control and which
could materially affect our actual results, performance or
achievements. Important factors which may cause actual results to
differ materially from current expectations include, but are not
limited to: risks related to the impact of the COVID-19 pandemic on
our tenants and on our business, financial condition, liquidity,
results of operations and compliance with debt covenants; our
inability to develop new outlet centers or expand existing outlet
centers successfully; risks related to the economic performance and
market value of our outlet centers; the relative illiquidity of
real property investments; impairment charges affecting our
properties; our dispositions of assets may not achieve anticipated
results; competition for the acquisition and development of outlet
centers, and our inability to complete outlet centers we have
identified; the bankruptcy of one or more of the retailers in our
centers; the fact certain of our lease agreements include
co-tenancy and/or sales-based provisions that may allow a tenant to
pay reduced rent and/or terminate a lease prior to its natural
expiration; environmental regulations affecting our business; risks
associated with possible terrorist activity or other acts or
threats of violence and threats to public safety; our dependence on
rental income from real property; our dependence on the results of
operations of our retailers; the fact that certain of our
properties are subject to ownership interests held by third
parties, whose interests may conflict with ours; risks related to
uninsured losses; the risk that consumer, travel, shopping and
spending habits may change; risks associated with our Canadian
investments; risks associated with attracting and retaining key
personnel; risks associated with debt financing; risks associated
with our guarantees of debt for, or other support we may provide
to, joint venture properties; the effectiveness of our interest
rate hedging arrangements; uncertainty relating to the potential
phasing out of LIBOR; our potential failure to qualify as a REIT;
our legal obligation to make distributions to our shareholders;
legislative or regulatory actions that could adversely affect our
shareholders, including the recent changes in the U.S. federal
income taxation of U.S. businesses; our dependence on distributions
from the Operating Partnership to meet our financial obligations,
including dividends; the risk of a cyber-attack or an act of
cyber-terrorism and other important factors set forth under Item 1A
- "Risk Factors" in the Company's and the Operating Partnership's
Annual Report on Form 10-K for the year ended December 31, 2019, as may be updated or
supplemented in the Company's Quarterly Reports on Form 10-Q and
the Company's other filings with the SEC. Accordingly, there is no
assurance that the Company's expectations will be realized. The
Company disclaims any intention or obligation to update the
forward-looking statements, whether as a result of new information,
future events or otherwise. You are advised to refer to any further
disclosures the Company makes or related subjects in the Company's
Current Reports on Form 8-K that the Company files with the
SEC.
Investor Contact Information
Cyndi Holt
|
Jim
Williams
|
VP, Investor
Relations
|
EVP &
CFO
|
336-834-6892
|
336-834-6800
|
cyndi.holt@tangeroutlets.com
|
jim.williams@tangeroutlets.com
|
Media Contact Information
Quentin
Pell
|
VP, Corporate
Communications and Enterprise Risk Management
|
336-834-6827
|
quentin.pell@tangeroutlets.com
|
TANGER FACTORY
OUTLET CENTERS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(in thousands,
except per share data)
|
(Unaudited)
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June 30,
|
|
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenues:
|
|
|
|
|
|
|
|
Rental
revenues
|
$
|
62,273
|
|
|
$
|
112,385
|
|
|
$
|
170,831
|
|
|
$
|
232,339
|
|
Management, leasing
and other services
|
725
|
|
|
1,245
|
|
|
2,168
|
|
|
2,587
|
|
Other
revenues
|
992
|
|
|
2,077
|
|
|
2,624
|
|
|
3,936
|
|
Total
revenues
|
63,990
|
|
|
115,707
|
|
|
175,623
|
|
|
238,862
|
|
Expenses:
|
|
|
|
|
|
|
|
Property
operating
|
28,158
|
|
|
36,726
|
|
|
66,785
|
|
|
79,103
|
|
General and
administrative
|
11,566
|
|
|
16,473
|
|
|
24,150
|
|
|
28,618
|
|
Impairment
charge
|
—
|
|
|
—
|
|
|
45,675
|
|
|
—
|
|
Depreciation and
amortization
|
28,646
|
|
|
31,146
|
|
|
58,063
|
|
|
62,906
|
|
Total
expenses
|
68,370
|
|
|
84,345
|
|
|
194,673
|
|
|
170,627
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(16,943)
|
|
|
(15,134)
|
|
|
(32,139)
|
|
|
(31,441)
|
|
Gain on sale of
assets
|
—
|
|
|
—
|
|
|
—
|
|
|
43,422
|
|
Other income
(expense)
|
408
|
|
|
(3,417)
|
|
|
628
|
|
|
(3,193)
|
|
Total other income
(expense)
|
(16,535)
|
|
|
(18,551)
|
|
|
(31,511)
|
|
|
8,788
|
|
Income (loss)
before equity in earnings of unconsolidated joint
ventures
|
(20,915)
|
|
|
12,811
|
|
|
(50,561)
|
|
|
77,023
|
|
Equity in earnings
(losses) of unconsolidated joint ventures
|
(2,975)
|
|
|
1,646
|
|
|
(1,448)
|
|
|
3,275
|
|
Net income
(loss)
|
(23,890)
|
|
|
14,457
|
|
|
(52,009)
|
|
|
80,298
|
|
Noncontrolling
interests in Operating Partnership
|
1,202
|
|
|
(730)
|
|
|
2,629
|
|
|
(4,045)
|
|
Noncontrolling
interests in other consolidated partnerships
|
—
|
|
|
—
|
|
|
(190)
|
|
|
(195)
|
|
Net income (loss)
attributable to Tanger Factory Outlet Centers, Inc.
|
(22,688)
|
|
|
13,727
|
|
|
(49,570)
|
|
|
76,058
|
|
Allocation of
earnings to participating securities
|
(176)
|
|
|
(114)
|
|
|
(692)
|
|
|
(725)
|
|
Net income (loss)
available to common shareholders of
Tanger Factory
Outlet Centers, Inc.
|
$
|
(22,864)
|
|
|
$
|
13,613
|
|
|
$
|
(50,262)
|
|
|
$
|
75,333
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(0.25)
|
|
|
$
|
0.15
|
|
|
$
|
(0.54)
|
|
|
$
|
0.81
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per common share:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(0.25)
|
|
|
$
|
0.15
|
|
|
$
|
(0.54)
|
|
|
$
|
0.81
|
|
TANGER FACTORY
OUTLET CENTERS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(in thousands,
except share data)
|
(Unaudited)
|
|
|
June
30,
|
|
December
31,
|
|
2020
|
|
2019
|
Assets
|
|
|
|
Rental
property:
|
|
|
|
Land
|
$
|
266,537
|
|
|
$
|
266,537
|
|
Buildings, improvements and fixtures
|
2,571,971
|
|
|
2,630,357
|
|
|
2,838,508
|
|
|
2,896,894
|
|
Accumulated depreciation
|
(1,032,784)
|
|
|
(1,009,951)
|
|
Total rental property,
net
|
1,805,724
|
|
|
1,886,943
|
|
Cash and
cash equivalents
|
338,606
|
|
|
16,672
|
|
Investments in unconsolidated joint ventures
|
92,150
|
|
|
94,691
|
|
Deferred
lease costs and other intangibles, net
|
94,757
|
|
|
96,712
|
|
Operating lease right-of-use assets
|
83,489
|
|
|
86,575
|
|
Prepaids
and other assets
|
149,066
|
|
|
103,618
|
|
Total assets
|
$
|
2,563,792
|
|
|
$
|
2,285,211
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Liabilities
|
|
|
|
Debt:
|
|
|
|
Senior, unsecured
notes, net
|
$
|
1,139,585
|
|
|
$
|
1,138,603
|
|
Unsecured term loan,
net
|
347,003
|
|
|
347,367
|
|
Mortgages payable,
net
|
81,897
|
|
|
83,803
|
|
Unsecured lines of
credit, net
|
397,407
|
|
|
—
|
|
Total debt
|
1,965,892
|
|
|
1,569,773
|
|
Accounts payable and
accrued expenses
|
70,895
|
|
|
79,562
|
|
Operating lease
liabilities (1)
|
90,793
|
|
|
91,237
|
|
Other
liabilities
|
106,229
|
|
|
88,530
|
|
Total liabilities
|
2,233,809
|
|
|
1,829,102
|
|
Commitments and
contingencies
|
|
|
|
Equity
|
|
|
|
Tanger Factory
Outlet Centers, Inc.:
|
|
|
|
Common shares, $.01
par value, 300,000,000 shares authorized, 93,472,267 and 92,892,260
shares issued and outstanding at June 30, 2020 and December 31
2019, respectively
|
935
|
|
|
929
|
|
Paid in
capital
|
781,485
|
|
|
775,035
|
|
Accumulated distributions in excess of net income
|
(433,396)
|
|
|
(317,263)
|
|
Accumulated other comprehensive loss
|
(35,513)
|
|
|
(25,495)
|
|
Equity attributable to Tanger Factory Outlet Centers,
Inc.
|
313,511
|
|
|
433,206
|
|
Equity
attributable to noncontrolling interests:
|
|
|
|
Noncontrolling
interests in Operating Partnership
|
16,472
|
|
|
22,903
|
|
Noncontrolling
interests in other consolidated partnerships
|
—
|
|
|
—
|
|
Total equity
|
329,983
|
|
|
456,109
|
|
Total liabilities and equity
|
$
|
2,563,792
|
|
|
$
|
2,285,211
|
|
TANGER FACTORY
OUTLET CENTERS, INC. AND SUBSIDIARIES
|
CENTER
INFORMATION
|
(Unaudited)
|
|
|
|
June
30,
|
|
|
2020
|
|
2019
|
Gross leasable
area open at end of period (in thousands):
|
|
|
|
|
Consolidated
|
|
12,051
|
|
|
12,047
|
|
Partially owned -
unconsolidated
|
|
2,212
|
|
|
2,210
|
|
Total
(1)
|
|
14,264
|
|
|
14,257
|
|
|
|
|
|
|
Outlet centers in
operation at end of period:
|
|
|
|
|
Consolidated
|
|
32
|
|
|
32
|
|
Partially owned -
unconsolidated
|
|
7
|
|
|
7
|
|
Total
|
|
39
|
|
|
39
|
|
|
|
|
|
|
States operated in at
end of period (2)
|
|
19
|
|
|
19
|
|
Occupancy at end of
period (2)
|
|
93.8
|
%
|
|
96.0
|
%
|
|
|
(1)
|
Due to rounding,
numbers may not add up precisely to
the totals provided.
|
(2)
|
Excludes the centers
in which the Company has ownership interests but are held in
unconsolidated joint ventures.
|
NON-GAAP SUPPLEMENTAL MEASURES
Beginning with the three months ended March 31, 2020, we have elected to supplement our
disclosure with three additional non-GAAP measures, Adjusted
EBITDA, EBITDAre and Adjusted EBITDAre (each as defined below),
that are commonly provided in the REIT industry. See "Adjusted
EBITDA, EBITDAre and Adjusted EBITDAre" below for more information.
We also now refer to Adjusted Funds from Operations ("AFFO") as
Core Funds From Operations ("Core FFO"), but there has been no
change to the definition of this measure.
Funds From Operations
Funds From Operations ("FFO") is a widely used measure of the
operating performance for real estate companies that supplements
net income (loss) determined in accordance with generally accepted
accounting principles in the United
States ("GAAP"). We determine FFO based on the definition
set forth by the National Association of Real Estate Investment
Trusts ("NAREIT"), of which we are a member. In December 2018, NAREIT issued "NAREIT Funds From
Operations White Paper - 2018 Restatement" which clarifies, where
necessary, existing guidance and consolidates alerts and policy
bulletins into a single document for ease of use. NAREIT defines
FFO as net income (loss) available to the Company's common
shareholders computed in accordance with GAAP, excluding (i)
depreciation and amortization related to real estate, (ii) gains or
losses from sales of certain real estate assets, (iii) gains and
losses from change in control, (iv) impairment write-downs of
certain real estate assets and investments in entities when the
impairment is directly attributable to decreases in the value of
depreciable real estate held by the entity and (v) after
adjustments for unconsolidated partnerships and joint ventures
calculated to reflect FFO on the same basis.
FFO is intended to exclude historical cost depreciation of real
estate as required by GAAP which assumes that the value of real
estate assets diminishes ratably over time. Historically, however,
real estate values have risen or fallen with market conditions.
Because FFO excludes depreciation and amortization of real estate
assets, gains and losses from property dispositions and
extraordinary items, it provides a performance measure that, when
compared year over year, reflects the impact to operations from
trends in occupancy rates, rental rates, operating costs,
development activities and interest costs, providing perspective
not immediately apparent from net income (loss).
We present FFO because we consider it an important supplemental
measure of our operating performance. In addition, a portion of
cash bonus compensation to certain members of management is based
on our FFO or Core FFO, which is described in the section below. We
believe it is useful for investors to have enhanced transparency
into how we evaluate our performance and that of our management. In
addition, FFO is frequently used by securities analysts, investors
and other interested parties in the evaluation of REITs, many of
which present FFO when reporting their results. FFO is also widely
used by us and others in our industry to evaluate and price
potential acquisition candidates. We believe that FFO payout ratio,
which represents regular distributions to common shareholders and
unit holders of the Operating Partnership expressed as a percentage
of FFO, is useful to investors because it facilitates the
comparison of dividend coverage between REITs. NAREIT has
encouraged its member companies to report their FFO as a
supplemental, industry-wide standard measure of REIT operating
performance.
FFO has significant limitations as an analytical tool, and you
should not consider it in isolation, or as a substitute for
analysis of our results as reported under GAAP. Some of these
limitations are:
- 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; and
- Other companies in our industry may calculate FFO differently
than we do, limiting its usefulness as a comparative measure.
Because of these limitations, FFO should not be considered as a
measure of discretionary cash available to us to invest in the
growth of our business or our dividend paying capacity. We
compensate for these limitations by relying primarily on our GAAP
results and using FFO only as a supplemental measure.
Core FFO
If applicable, we present Core FFO (formerly referred to as
AFFO) as a supplemental measure of our performance. We define Core
FFO as FFO further adjusted to eliminate the impact of certain
items that we do not consider indicative of our ongoing operating
performance. These further adjustments are itemized in the table
below, if applicable. You are encouraged to evaluate these
adjustments and the reasons we consider them appropriate for
supplemental analysis. In evaluating Core FFO you should be aware
that in the future we may incur expenses that are the same as or
similar to some of the adjustments in this presentation. Our
presentation of Core FFO should not be construed as an inference
that our future results will be unaffected by unusual or
non-recurring items.
We present Core FFO because we believe it assists investors and
analysts in comparing our performance across reporting periods on a
consistent basis by excluding items that we do not believe are
indicative of our core operating performance. In addition, we
believe it is useful for investors to have enhanced transparency
into how we evaluate management's performance and the effectiveness
of our business strategies. We use Core FFO when certain material,
unplanned transactions occur as a factor in evaluating management's
performance and to evaluate the effectiveness of our business
strategies, and may use Core FFO when determining incentive
compensation.
Core FFO has limitations as an analytical tool. Some of these
limitations are:
- Core FFO does not reflect our cash expenditures, or future
requirements, for capital expenditures or contractual
commitments;
- Core 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 Core FFO does not reflect any cash
requirements for such replacements;
- Core FFO 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 Core FFO
differently than we do, limiting its usefulness as a comparative
measure.
Because of these limitations, Core FFO should not be considered
in isolation or as a substitute for performance measures calculated
in accordance with GAAP. We compensate for these limitations by
relying primarily on our GAAP results and using Core FFO only as a
supplemental measure.
Funds Available for Distribution
Funds Available for Distribution ("FAD") is a non-GAAP financial
measure that we define as FFO, excluding corporate depreciation,
amortization of finance costs, amortization of net debt discount
(premium), amortization of equity-based compensation, straight-line
rent amounts, market rent amounts, second generation tenant
allowances, capital improvement expenditures, and our share of the
items listed above for our unconsolidated joint ventures.
Investors, analysts and the Company utilize FAD as an indicator of
common dividend potential. The FAD payout ratio, which represents
regular distributions to common shareholders and unit holders of
the Operating Partnership expressed as a percentage of FAD,
facilitates the comparison of dividend coverage between REITs.
We believe that net income (loss) is the most directly
comparable GAAP financial measure to FAD. FAD does not represent
cash generated from operating activities in accordance with GAAP
and should not be considered as an alternative to net income (loss)
as an indication of our performance or to cash flows as a measure
of liquidity or our ability to make distributions. Other companies
in our industry may calculate FAD differently than we do, limiting
its usefulness as a comparative measure.
Portfolio Net Operating Income and Same Center Net Operating
Income
We present portfolio net operating income ("Portfolio NOI") and
same center net operating income ("Same Center NOI") as
supplemental measures of our operating performance. Portfolio
NOI represents our property level net operating income which is
defined as total operating revenues less property operating
expenses and excludes termination fees and non-cash adjustments
including straight-line rent, net above and below market rent
amortization, impairment charges and gains or losses on the sale of
assets recognized during the periods presented. We define Same
Center NOI as Portfolio NOI for the properties that were
operational for the entire portion of both comparable reporting
periods and which were not acquired, or subject to a material
expansion or non-recurring event, such as a natural disaster,
during the comparable reporting periods.
We believe Portfolio NOI and Same Center NOI are non-GAAP
metrics used by industry analysts, investors and management to
measure the operating performance of our properties because they
provide performance measures directly related to the revenues and
expenses involved in owning and operating real estate assets and
provide a perspective not immediately apparent from net income
(loss), FFO or Core FFO. Because Same Center NOI excludes
properties developed, redeveloped, acquired and sold; as well as
non-cash adjustments, gains or losses on the sale of outparcels and
termination rents; it highlights operating trends such as occupancy
levels, rental rates and operating costs on properties that were
operational for both comparable periods. Other REITs may use
different methodologies for calculating Portfolio NOI and Same
Center NOI, and accordingly, our Portfolio NOI and Same Center NOI
may not be comparable to other REITs.
Portfolio NOI and Same Center NOI should not be considered
alternatives to net income (loss) or as an indicator of our
financial performance since they do not reflect the entire
operations of our portfolio, nor do they reflect the impact of
general and administrative expenses, acquisition-related expenses,
interest expense, depreciation and amortization costs, other
non-property income and losses, the level of capital expenditures
and leasing costs necessary to maintain the operating performance
of our properties, or trends in development and construction
activities which are significant economic costs and activities that
could materially impact our results from operations. Because of
these limitations, Portfolio NOI and Same Center NOI should not be
viewed in isolation or as a substitute for performance measures
calculated in accordance with GAAP. We compensate for these
limitations by relying primarily on our GAAP results and using
Portfolio NOI and Same Center NOI only as supplemental
measures.
Adjusted EBITDA, EBITDAre and Adjusted EBITDAre
We present Earnings Before Interest, Taxes, Depreciation and
Amortization ("EBITDA") as adjusted for items described below
("Adjusted EBITDA"), EBITDA for Real Estate ("EBITDAre") and
Adjusted EBITDAre, all non-GAAP measures, as supplemental measures
of our operating performance. Each of these measures is defined as
follows:
We define Adjusted EBITDA as net income (loss) available to the
Company's common shareholders computed in accordance with GAAP
before interest expense, income taxes, depreciation and
amortization, gains and losses on sale of operating properties and
joint venture properties, gains and losses on change of control,
impairment write-downs of depreciated property and of investment in
unconsolidated joint ventures caused by a decrease in value of
depreciated property in the affiliate, compensation related to
executive officer retirement, gains and losses on extinguishment of
debt, net and other items that we do not consider indicative of the
Company's ongoing operating performance.
We determine EBITDAre based on the definition set forth by
NAREIT, which is defined as net income (loss) available to the
Company's common shareholders computed in accordance with GAAP
before interest expense, income taxes, depreciation and
amortization, gains and losses on sale of operating properties,
gains and losses on change of control and impairment write-downs of
depreciated property and of investment in unconsolidated joint
ventures caused by a decrease in value of depreciated property in
the affiliate and after adjustments to reflect our share of the
EBITDAre of unconsolidated joint ventures.
Adjusted EBITDAre is defined as EBITDAre excluding gains
and losses on extinguishment of debt, net, compensation related to
executive officer retirement and other items that that we do
not consider indicative of the Company's ongoing operating
performance.
We present Adjusted EBITDA, EBITDAre and Adjusted EBITDAre as we
believe they are useful for investors, creditors and rating
agencies as they provide additional performance measures that are
independent of a Company's existing capital structure to facilitate
the evaluation and comparison of the Company's operating
performance to other REITs and provide a more consistent metric for
comparing the operating performance of the Company's real estate
between periods.
Adjusted EBITDA, EBITDAre and Adjusted EBITDAre have significant
limitations as analytical tools, including:
- They do not reflect our interest expense;
- They do not reflect gains or losses on sales of operating
properties or impairment write-downs of depreciated property and of
investment in unconsolidated joint ventures caused by a decrease in
value of depreciated property in the affiliate;
- Adjusted EBITDA and Adjusted EBITDAre do not reflect gains and
losses on extinguishment of debt and other items that may affect
operations; and
- Other companies in our industry may calculate these measures
differently than we do, limiting its usefulness as a comparative
measure.
Because of these limitations, Adjusted EBITDA, EBITDAre and
Adjusted EBITDAre should not be considered in isolation or as a
substitute for performance measures calculated in accordance with
GAAP. We compensate for these limitations by relying primarily on
our GAAP results and using Adjusted EBITDA, EBITDAre and Adjusted
EBITDAre only as supplemental measures.
TANGER FACTORY
OUTLET CENTERS, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
GAAP TO NON-GAAP SUPPLEMENTAL MEASURES
|
(in thousands,
except per share)
|
(Unaudited)
|
|
Below is a
reconciliation of Net Income (Loss) to FFO and Core
FFO:
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net income
(loss)
|
|
$
|
(23,890)
|
|
|
$
|
14,457
|
|
|
$
|
(52,009)
|
|
|
$
|
80,298
|
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization of real estate assets - consolidated
|
|
28,057
|
|
|
30,550
|
|
|
56,858
|
|
|
61,698
|
|
Depreciation and
amortization of real estate assets - unconsolidated joint
ventures
|
|
3,017
|
|
|
3,265
|
|
|
6,035
|
|
|
6,395
|
|
Impairment charge -
consolidated
|
|
—
|
|
|
—
|
|
|
45,675
|
|
|
—
|
|
Impairment charge -
unconsolidated joint ventures
|
|
3,091
|
|
|
—
|
|
|
3,091
|
|
|
—
|
|
Foreign currency loss
from sale of joint venture property
|
|
—
|
|
|
3,641
|
|
|
—
|
|
|
3,641
|
|
Gain on sale of
assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(43,422)
|
|
FFO
|
|
10,275
|
|
|
51,913
|
|
|
59,650
|
|
|
108,610
|
|
FFO attributable to
noncontrolling interests in other consolidated
partnerships
|
|
—
|
|
|
—
|
|
|
(190)
|
|
|
(195)
|
|
Allocation of
earnings to participating securities
|
|
(281)
|
|
|
(410)
|
|
|
(692)
|
|
|
(1,021)
|
|
FFO available to
common shareholders (1)
|
|
$
|
9,994
|
|
|
$
|
51,503
|
|
|
$
|
58,768
|
|
|
$
|
107,394
|
|
As further adjusted
for:
|
|
|
|
|
|
|
|
|
Compensation related
to executive officer retirement (2)
|
|
—
|
|
|
4,371
|
|
|
—
|
|
|
4,371
|
|
Impact of above
adjustment to the allocation of earnings to participating
securities
|
|
—
|
|
|
(35)
|
|
|
—
|
|
|
(35)
|
|
Core FFO available
to common shareholders (1)
|
|
$
|
9,994
|
|
|
$
|
55,839
|
|
|
$
|
58,768
|
|
|
$
|
111,730
|
|
FFO available to
common shareholders per share - diluted
(1)
|
|
$
|
0.10
|
|
|
$
|
0.52
|
|
|
$
|
0.60
|
|
|
$
|
1.09
|
|
Core FFO available
to common shareholders per share - diluted
(1)
|
|
$
|
0.10
|
|
|
$
|
0.57
|
|
|
$
|
0.60
|
|
|
$
|
1.14
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares:
|
|
|
|
|
|
|
|
|
Basic weighted
average common shares
|
|
92,632
|
|
|
93,187
|
|
|
92,569
|
|
|
93,245
|
|
Diluted weighted
average common shares (for earnings per share
computations)
|
|
92,632
|
|
|
93,187
|
|
|
92,569
|
|
|
93,245
|
|
Exchangeable
operating partnership units
|
|
4,911
|
|
|
4,960
|
|
|
4,911
|
|
|
4,960
|
|
Diluted weighted
average common shares (for FFO and Core FFO per share
computations) (1)
|
|
97,543
|
|
|
98,147
|
|
|
97,480
|
|
|
98,205
|
|
|
|
(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 the
accelerated recognition of compensation cost entitled to be
received by the Company's former President and Chief Operating
Officer per the terms of a transition agreement executed in
connection with his retirement.
|
Below is a
reconciliation of FFO to FAD:
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
FFO available to
common shareholders
|
|
$
|
9,994
|
|
|
$
|
51,503
|
|
|
$
|
58,768
|
|
|
$
|
107,394
|
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
Corporate
depreciation excluded above
|
|
589
|
|
|
596
|
|
|
1,205
|
|
|
1,208
|
|
Amortization of
finance costs
|
|
833
|
|
|
750
|
|
|
1,590
|
|
|
1,497
|
|
Amortization of net
debt discount (premium)
|
|
119
|
|
|
111
|
|
|
237
|
|
|
220
|
|
Amortization of
equity-based compensation
|
|
3,431
|
|
|
6,982
|
|
|
7,219
|
|
|
10,800
|
|
Straight-line rent
adjustments
|
|
2,550
|
|
|
(2,916)
|
|
|
677
|
|
|
(4,886)
|
|
Market rent
adjustments
|
|
49
|
|
|
273
|
|
|
411
|
|
|
753
|
|
Second generation
tenant allowances
|
|
(5,809)
|
|
|
(3,076)
|
|
|
(11,538)
|
|
|
(6,050)
|
|
Capital
improvements
|
|
(4,046)
|
|
|
(6,848)
|
|
|
(9,192)
|
|
|
(9,897)
|
|
Adjustments from
unconsolidated joint ventures
|
|
(89)
|
|
|
(798)
|
|
|
(121)
|
|
|
(1,204)
|
|
FAD available to
common shareholders (1)
|
|
$
|
7,621
|
|
|
$
|
46,577
|
|
|
$
|
49,256
|
|
|
$
|
99,835
|
|
Dividends per
share
|
|
$
|
0.3575
|
|
|
$
|
0.3550
|
|
|
$
|
0.7125
|
|
|
$
|
0.7050
|
|
FFO payout
ratio
|
|
358
|
%
|
|
68
|
%
|
|
119
|
%
|
|
65
|
%
|
FAD payout
ratio
|
|
447
|
%
|
|
76
|
%
|
|
140
|
%
|
|
69
|
%
|
Diluted weighted
average common shares (1)
|
|
97,543
|
|
|
98,147
|
|
|
97,480
|
|
|
98,205
|
|
|
|
(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.
|
Below is a
reconciliation of Net Income (Loss) to Portfolio NOI and Same
Center NOI for the consolidated portfolio:
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net income
(loss)
|
|
$
|
(23,890)
|
|
|
$
|
14,457
|
|
|
$
|
(52,009)
|
|
|
$
|
80,298
|
|
Adjusted to
exclude:
|
|
|
|
|
|
|
|
|
Equity in (earnings)
losses of unconsolidated joint ventures
|
|
2,975
|
|
|
(1,646)
|
|
|
1,448
|
|
|
(3,275)
|
|
Interest
expense
|
|
16,943
|
|
|
15,134
|
|
|
32,139
|
|
|
31,441
|
|
Gain on sale of
assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(43,422)
|
|
Other (income)
expense
|
|
(408)
|
|
|
3,417
|
|
|
(628)
|
|
|
3,193
|
|
Impairment
charge
|
|
—
|
|
|
—
|
|
|
45,675
|
|
|
—
|
|
Depreciation and
amortization
|
|
28,646
|
|
|
31,146
|
|
|
58,063
|
|
|
62,906
|
|
Other non-property
expenses
|
|
323
|
|
|
180
|
|
|
461
|
|
|
331
|
|
Corporate general and
administrative expenses
|
|
11,715
|
|
|
16,635
|
|
|
24,294
|
|
|
28,767
|
|
Non-cash adjustments
(1)
|
|
2,621
|
|
|
(2,628)
|
|
|
1,119
|
|
|
(4,100)
|
|
Lease termination
fees
|
|
(1,514)
|
|
|
(269)
|
|
|
(1,677)
|
|
|
(1,399)
|
|
Portfolio
NOI
|
|
37,411
|
|
|
76,426
|
|
|
108,885
|
|
|
154,740
|
|
Non-same center NOI
(2)
|
|
—
|
|
|
(23)
|
|
|
—
|
|
|
(4,108)
|
|
Same Center
NOI
|
|
$
|
37,411
|
|
|
$
|
76,403
|
|
|
$
|
108,885
|
|
|
$
|
150,632
|
|
|
|
(1)
|
Non-cash items
include straight-line rent, above and below market rent
amortization, straight-line rent expense on
land leases and gains or losses on outparcel sales, as
applicable.
|
(2)
|
Excluded from Same
Center NOI:
|
|
|
Outlet centers
sold:
|
Nags Head, Ocean City,
Park City, and
Williamsburg March
2019
|
Below is a
reconciliation of Net Income (Loss) to Adjusted
EBITDA:
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net income
(loss)
|
|
$
|
(23,890)
|
|
|
$
|
14,457
|
|
|
$
|
(52,009)
|
|
|
$
|
80,298
|
|
Adjusted to
exclude:
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
16,943
|
|
|
15,134
|
|
|
32,139
|
|
|
31,441
|
|
Depreciation and
amortization
|
|
28,646
|
|
|
31,146
|
|
|
58,063
|
|
|
62,906
|
|
Impairment charge -
consolidated
|
|
—
|
|
|
—
|
|
|
45,675
|
|
|
—
|
|
Impairment charge -
unconsolidated joint ventures
|
|
3,091
|
|
|
—
|
|
|
3,091
|
|
|
—
|
|
Loss on sale of joint
venture property, including foreign currency effect
|
|
—
|
|
|
3,641
|
|
|
—
|
|
|
3,641
|
|
Gain on sale of
assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(43,422)
|
|
Compensation related
to executive officer retirement
|
|
—
|
|
|
4,371
|
|
|
—
|
|
|
4,371
|
|
Adjusted
EBITDA
|
|
$
|
24,790
|
|
|
$
|
68,749
|
|
|
$
|
86,959
|
|
|
$
|
139,235
|
|
Below is a
reconciliation of Net Income (Loss) to EBITDAre:
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net income
(loss)
|
|
$
|
(23,890)
|
|
|
$
|
14,457
|
|
|
$
|
(52,009)
|
|
|
$
|
80,298
|
|
Adjusted to
exclude:
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
16,943
|
|
|
15,134
|
|
|
32,139
|
|
|
31,441
|
|
Depreciation and
amortization
|
|
28,646
|
|
|
31,146
|
|
|
58,063
|
|
|
62,906
|
|
Impairment charge -
consolidated
|
|
—
|
|
|
—
|
|
|
45,675
|
|
|
—
|
|
Impairment charge -
unconsolidated joint ventures
|
|
3,091
|
|
|
—
|
|
|
3,091
|
|
|
—
|
|
Loss on sale of joint
venture property, including foreign currency effect
|
|
—
|
|
|
3,641
|
|
|
—
|
|
|
3,641
|
|
Gain on sale of
assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(43,422)
|
|
Pro-rata share of
interest expense - unconsolidated joint ventures
|
|
1,616
|
|
|
2,069
|
|
|
3,484
|
|
|
4,135
|
|
Pro-rata share of
depreciation and amortization - unconsolidated joint
ventures
|
|
3,018
|
|
|
3,265
|
|
|
6,035
|
|
|
6,343
|
|
EBITDAre
|
|
$
|
29,424
|
|
|
$
|
69,712
|
|
|
$
|
96,478
|
|
|
$
|
145,342
|
|
Compensation related
to executive officer retirement
|
|
—
|
|
|
4,371
|
|
|
—
|
|
|
4,371
|
|
Adjusted
EBITDAre
|
|
$
|
29,424
|
|
|
$
|
74,083
|
|
|
$
|
96,478
|
|
|
$
|
149,713
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/tanger-reports-second-quarter-results--provides-covid-19-update-301107075.html
SOURCE Tanger Factory Outlet Centers, Inc.