GREENSBORO, N.C., Oct. 27, 2009 (GLOBE NEWSWIRE) -- Tanger Factory Outlet Centers, Inc. (NYSE:SKT) today reported funds from operations available to common shareholders ("FFO"), a widely accepted measure of REIT performance, for the three months ended September 30, 2009 was $0.54 per share, or $24.0 million, as compared to FFO of $0.67 per share, or $25.4 million, for the three months ended September 30, 2008. For the nine months ended September 30, 2009, FFO was $81.2 million, or $1.99 per share, as compared to FFO of $61.6 million, or $1.63 per share, for the nine months ended September 30, 2008.

FFO for all periods shown was impacted by a number of non-recurring charges as described in the summary below ($'s in thousands):

                                Three Months Ended   Nine Months Ended
                                   September 30,       September 30,
                                  2009      2008      2009      2008
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 FFO as reported                $ 23,983  $ 25,442  $ 81,174  $ 61,620
 As adjusted for:
  U.S. Treasury lock settlements      --        --        --     8,910
  Prepayment premium                  --        --        --       406
  Impairment charge                   --        --     5,200        --
  Gain on early extinguishment
   of debt                            --        --   (10,467)       --
  Executive severance             10,296        --    10,296        --
  Gain on sale of outparcel       (3,292)       --    (3,292)       --
  Impact of above adjustments to
   the allocation of earnings to
   participating securities          (85)       --       (23)     (121)
 ---------------------------------------------------------------------
 FFO as adjusted                $ 30,902  $ 25,442  $ 82,888  $ 70,815
 FFO per share as adjusted      $    .70  $    .67  $   2.04  $   1.88
 ---------------------------------------------------------------------

Excluding these charges, adjusted FFO for the third quarter and nine months ended September 30, 2009 would have been $0.70 and $2.04 per share respectively, while FFO for the third quarter and nine months ended September 30, 2008 would have been $0.67 and $1.88 per share respectively; representing an increase of 4.5% for the three months ended September 30, 2009 and an increase of 8.5% for the nine months ended September 30, 2009.

For the three months ended September 30, 2009, net income available to common shareholders was $2.3 million or $0.06 per share, as compared to $8.1 million, or $0.26 per share for the third quarter of 2008. Net income available to common shareholders for the nine months ended September 30, 2009 was $41.6 million, or $1.20 per share compared to $12.1 million, or $0.38 per share, for the first nine months of 2008. Net income available to common shareholders for certain periods in 2008 and 2009 were also impacted by the non-recurring charges described above. Net income available to common shareholders for the nine months ended September 30, 2009 also includes a non-recurring gain of $31.5 million related to the acquisition of our partner's interest in a shopping center previously held in a joint venture.

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 press release.

Third Quarter Highlights

 * Successfully completed 3,450,000 common share offering at a
   price of $35.50 per share, with net proceeds amounting to
   approximately $116.8 million
 * Received an upgrade from Moody's Investor Service from Baa3
   stable to Baa3 positive
 * 24.3% debt-to-total market capitalization ratio, compared to
   31.2% last year
 * 4.63 times interest coverage ratio for the three months ended
   September 30, 2009 compared to 3.66 times last year
 * 10.1% average increase in base rental rates on 1,113,000 square
   feet of signed renewals during the first nine months of 2009,
   compared to 17.6% year to date in 2008
 * 37.4% average increase in base rental rates on 319,000 square
   feet of re-leased space during the first nine months of 2009,
   compared to 43.8% year to date in 2008
 * 1.8% increase in same center net operating income for the first
   nine months, compared to 4.7% year to date last year
 * 95.6% occupancy rate for wholly-owned properties, up 0.9% from
   June 30, 2009
 * $335 per square foot in reported same-space tenant sales for the
   rolling twelve months ended September 30, 2009

Steven B. Tanger, President and Chief Executive Officer, commented, "We are pleased with our operating results for the third quarter of 2009. Overall, we have remained on plan during these difficult economic times. Our third quarter adjusted funds from operations per share increased 4.5%; and, as planned, same center net operating income increased almost 2% during the first nine months of 2009. In addition, we are excited to report that we have closed on our development site in Mebane, North Carolina and will begin construction immediately, with a targeted opening date in time for the 2010 holiday season."

Balance Sheet Summary

On August 14, 2009, Tanger announced the successful completion of a public offering of 3,450,000 common shares at a price of $35.50 per share, including 450,000 common shares issued and sold upon the full exercise of the underwriters' overallotment option. BofA Merrill Lynch and Goldman, Sachs & Co. served as the joint book-running managers. The net proceeds to the company from the offering, after deducting underwriting commissions and discounts and estimated offering expenses, were approximately $116.8 million. The Company used the net proceeds from the offering to repay borrowings under its unsecured lines of credit and for general corporate purposes.

On September 22, 2009, Moody's Investors Service affirmed its Baa3 senior unsecured rating for Tanger Properties Limited Partnership, the operating partnership of Tanger Factory Outlet Centers, Inc, and revised the rating outlook for Tanger to positive from stable. This rating action incorporates Tanger's stable performance throughout the economic downturn to date, overall defensive nature of outlet retailing, as well as the REIT's strong credit metrics in its rating category.

As of September 30, 2009, Tanger had a total market capitalization of approximately $2.4 billion including $580.5 million of debt outstanding, equating to a 24.3% debt-to-total market capitalization ratio. As of September 30, 2009, 90.6% of Tanger's debt was at fixed interest rates and the company had $54.0 million outstanding on its $325.0 million in available unsecured lines of credit. During the third quarter of 2009, Tanger continued to maintain a strong interest coverage ratio of 4.63 times, compared to 3.66 times during the third quarter of last year.

Portfolio Operating Results

During the first nine months of 2009, Tanger executed 319 leases, totaling 1,432,000 square feet within its wholly-owned properties. Lease renewals during the first nine months of 2009 accounted for 1,113,000 square feet, which represented approximately 74% of the square feet originally scheduled to expire during 2009, and generated a 10.1% increase in average base rental rates. Base rental increases on re-tenanted space during the first nine months averaged 37.4% and accounted for the remaining 319,000 square feet.

Same center net operating income increased 0.3% for the third quarter of 2009, and increased 1.8% for the first nine months of 2009, compared to 4.7% for the first nine months of 2008. Reported tenant comparable sales for our wholly owned properties for the rolling twelve months ended September 30, 2009 decreased 2.0% to $335 per square foot. However, reported tenant comparable sales for the three months ended September 30, 2009 increased 5.1%. 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.

New Development

On October 14, 2009, Tanger closed on its development site in Mebane, North Carolina. The company will begin construction of its center, totaling approximately 317,000 square feet immediately. Currently, Tanger has signed leases, or leases out for signature for approximately 66% of the total gross leasable area. With an estimated total cost of approximately $61.5 million, and an anticipated return on cost of between 10.5% and 11.0%, the company expects the center to be open in time for the 2010 holiday season.

2009 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 $1.39 and $1.45 per share and its FFO available to common shareholders for 2009 will be between $2.62 and $2.68 per share. This represents an increase of approximately 7% from the company's previous FFO guidance.