AFFO per share rises 16.7% at Tanger Factory Outlet in Q3

30 Oct '13

3 min read

Tanger Factory Outlet Centers, Inc. reported funds from operations ("FFO") available to common shareholders, a widely accepted supplemental measure of REIT performance, increased to $56.2 million for the three months ended September 30, 2013, compared to FFO of $41.9 million for the three months ended September 30, 2012. For the nine months ended September 30, 2013, FFO increased to $139.8 million, as compared to FFO of $116.1 million for the nine months ended September 30, 2012.

Excluding these charges, adjusted funds from operations ("AFFO") increased 16.7% to $0.49 per share for the three months ended September 30, 2013 from $0.42 per share for the three months ended September 30, 2012. For the nine months ended September 30, 2013, AFFO per share increased 13.4% to $1.35 per share, compared to $1.19 per share for the nine months ended September 30, 2012.

Third Quarter Highlights

-Same center net operating income increased 4.0% during the quarter, marking the 35th consecutive quarter of same center net operating income growth

-Year-to-date blended increase in average base rental rates on space renewed and released throughout the consolidated portfolio of 23.4%

-Period-end consolidated portfolio occupancy rate of 98.7% at September 30, 2013, up 10 basis points compared to September 30, 2012

-Comparable tenant sales for the consolidated portfolio increased approximately 1% to $384 per square foot for the twelve months ended September 30, 2013

-Debt-to-total market capitalization ratio of 29.0% as of September 30, 2013

-Interest coverage ratio of 4.71 times, compared to 4.37 times last year

-Total market capitalization increased 7.8% to $4.6 billion at September 30, 2013 from $4.2 billion on September 30, 2012

-Acquired a controlling interest in Tanger Outlets Deer Park, located in New York on Long Island on August 30, 2013

-Commenced construction in Charlotte, North Carolina on September 20, 2013

-Commenced construction of Tanger Outlets at Foxwoods in Mashantucket, Connecticut on September 26, 2013

-Completed recast of unsecured lines of credit on October 24, 2013

-Entered into interest rate swaps on the $150 million Deer Park mortgage on October 28, 2013

Net income available to common shareholders for the three months ended September 30, 2013 increased to $52.7 million, or $0.56 per share, as compared to net income of $15.1 million, or $0.16 per share for the three months ended September 30, 2012.

For the nine months ended September 30, 2013, net income available to common shareholders increased to $84.7 million, or $0.90 per share, as compared to net income available to common shareholders of $34.6 million, or $0.37 per share, for the nine months ended September 30, 2012.

In addition to the charges described above, net income available to common shareholders was impacted by a $26.0 million gain on fair value measurement related to the acquisition of an additional one-third interest in the Deer Park property, and the consolidation of Deer Park into Tanger's financial statements as of August 30, 2013.

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