(Source: PRNewswire-FirstCall)GREENSBORO, N.C., April 23 /PRNewswire-FirstCall/ -- Tanger Factory Outlet Centers, Inc. today reported funds from operations ("FFO") available to common shareholders, a widely accepted supplemental measure of REIT performance, for the three months ended March 31, 2009 was $24.7 million, or $0.66 per share, as compared to FFO of $21.9 million, or $0.59 per share, for the three months ended March 31, 2008, representing a 12.8% increase in total FFO and a 11.9% increase in FFO per share. Net income available to common shareholders for the three months ended March 31, 2009 was $28.9 million, or $0.92 per share, as compared to net income of $4.9 million, or $0.16 per share for the first quarter of 2008.

Net income and FFO per share amounts above are on a diluted basis. FFO is a supplemental non-GAAP financial measure used as a standard 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 to FFO is included in this release.

   First Quarter Highlights    --  Dividend increase approved by Board of Directors to raise the       quarterly common share cash dividend from $0.38 to $0.3825 per share,       $1.53 per share annualized, representing the 16th consecutive year of       increased dividends   --  Announced exchange offer for 3.75% Exchangeable Senior Notes   --  2.4% increase in same center net operating income   --  14.5% increase in average base rental rates on leases renewed during       the quarter, compared to 17.9% last year   --  42.4% increase in average base rental rates on released space during       the quarter, compared to 41.7% last year   --  93.5% period-end wholly-owned portfolio occupancy rate, compared to       95.3% last year    --  $338 per square foot in reported tenant comparable sales for the       rolling twelve months ended March 31, 2009    

Steven B. Tanger, President and Chief Executive Officer, commented, "During the first quarter we announced that our board of directors had approved an increase in our common share dividend for the 16th consecutive year. We also announced the exchange offer relating to our 3.75% Exchangeable Senior Notes. With a successful completion of this offering, our 2011 debt maturities will be substantially reduced."

Portfolio Operating Results

During the first quarter of 2009, Tanger executed 213 leases, totaling 994,000 square feet throughout its wholly-owned portfolio. Lease renewals during the first quarter accounted for 806,000 square feet, generated a 14.5% increase in average base rental rates and represented 53.8% of the square feet originally scheduled to expire during 2009. Average base rental increases on re-tenanted space during the first quarter averaged 42.4% and accounted for the remaining 188,000 square feet.

Same center net operating income increased 2.4% for the first quarter of 2009 compared to 2.5% in the fourth quarter of 2008 and 5.7% in the first quarter of 2008. Reported tenant comparable sales for our wholly owned properties for the rolling twelve months ended March 31, 2009 decreased 3.2% to $338 per square foot due to the current downturn in the economy. Reported tenant comparable sales numbers exclude our centers in Foley, Alabama and on Highway 501 in Myrtle Beach, South Carolina, both of which underwent major renovations during last year.

Cash Dividend Increased

On April 9, 2009, Tanger announced that its Board of Directors approved an increase in the annual cash dividend on its common shares from $1.52 per share to $1.53 per share. Simultaneously, the Board of Directors declared a quarterly dividend of $0.3825 per share for the first quarter ended March 31, 2009. A cash dividend of $0.3825 per share will be payable on May 15, 2009 to holders of record on April 30, 2009. Tanger has increased its dividend each year since becoming a public company in May of 1993.

Exchange Offer Launched

On April 9, 2009, Tanger also announced that it had commenced an offer to exchange common shares of Tanger for any and all of the outstanding 3.75% Exchangeable Senior Notes due 2026 of Tanger Properties Limited Partnership. For each $1,000 principal amount of exchangeable notes validly tendered, note holders will receive 27.7434 common shares, which represents an exchange price of approximately $36.04 per share, plus $215 paid in the form of additional common shares (based on the average of the volume weighted average prices of Tanger's common shares over an eight trading day averaging period beginning April 24, 2009 and ending May 5, 2009), subject to a minimum and a maximum number of common shares as described in the prospectus for the offer. Holders will also receive a cash payment for accrued and unpaid interest on the exchangeable notes up to but not including the settlement date. The offer is scheduled to expire at 5:00 p.m., New York City time, on Thursday, May 7, 2009. As of April 8, 2009, there was $149,500,000 principal amount of 3.75% Exchangeable Notes outstanding.

Balance Sheet Summary

As of March 31, 2009, Tanger had a total market capitalization of approximately $2.1 billion including $849.2 million of debt outstanding, equating to a 40.5% debt-to-total market capitalization ratio. As of March 31, 2009, 77.8% of Tanger's debt was at fixed interest rates and the company had $188.4 million outstanding on its $325.0 million in available unsecured lines of credit. During the first quarter of 2009, Tanger continued to maintain a strong interest coverage ratio of 3.34 times, compared to 3.22 times during the first quarter of last year.

2009 FFO Per Share Guidance

Based on current market conditions and the strength and stability of its core portfolio, the company currently believes its net income available to common shareholders for 2009 will be between $1.35 and $1.45 per share and its FFO available to common shareholders for 2009 will be between $2.73 and $2.83 per share. The company's earnings estimates do not include the impact of the exchange offer described above, nor any potential gains on the sale of land parcels or the impact of any potential sales or acquisitions of properties. The following table provides the reconciliation of estimated diluted net income available to common shareholders per share to estimated diluted FFO available to common shareholders per share:

    For the twelve months ended December 31,     2009:                                                 Low Range   High Range    Estimated diluted net income per share          $1.35       $1.45    Non-controlling interest, gain/loss on     acquisition of real estate, depreciation     and amortization uniquely significant to     real estate including non-controlling     interest share and our share of joint     ventures                                        1.38        1.38    Estimated diluted FFO per share                 $2.73       $2.83    First Quarter Conference Call   

Tanger will host a conference call to discuss its first quarter results for analysts, investors and other interested parties on Friday, April 24, 2009, at 10:00 A.M. eastern time. To access the conference call, listeners should dial 1-877-277-5113 and request to be connected to the Tanger Factory Outlet Centers First Quarter Financial Results call. Alternatively, the call will be web cast by CCBN and can be accessed at Tanger Factory Outlet Centers, Inc.'s web site at http://www.tangeroutlet.com/investorrelations/news/ under the News Releases section. A telephone replay of the call will be available from April 24, 2009 starting at 1:00 P.M. Eastern Time through May 1, 2009, by dialing 1-800-642-1687 (conference ID # 92097927).