Grows Same Center Occupancy by 60 Basis Points
Year Over Year
Achieves 9th Consecutive Quarter of Positive
Rent Spreads
Increases, Extends and Improves Pricing of
Unsecured Lines of Credit
GREENSBORO, N.C., April 30,
2024 /PRNewswire/ -- Tanger®
(NYSE:SKT), a leading owner and operator of outlet and open-air
retail shopping destinations, today reported financial results and
operating metrics for the three months ended March 31, 2024.
"We are pleased to announce another quarter of strong financial
and operating results along with a recent 6% dividend increase,"
said Stephen Yalof, President and
Chief Executive Officer. "We are strategically focused on elevating
and diversifying our tenant mix, driving total rents and leveraging
our platform to realize additional growth. We achieved our ninth
consecutive quarter of positive rent spreads with continued
significant leasing volume, which positions us to further enhance
our portfolio for our shoppers and retail partners."
Mr. Yalof continued, "In early April, we also increased the
capacity, extended the term, and improved the pricing of our
unsecured lines of credit, further strengthening our balance sheet
and liquidity, positioning the Company to continue to execute on
its long-term growth strategies and unlock additional value for all
of our stakeholders."
First Quarter Results
- Net income available to common shareholders was $0.20 per share, or $22.2
million, compared to $0.22 per
share, or $23.3 million, for the
prior year period.
- Funds From Operations ("FFO") available to common shareholders
was $0.51 per share, or $58.6 million, compared to $0.47 per share, or $52.0
million, for the prior year period.
- Core Funds From Operations ("Core FFO") available to
common shareholders was $0.52 per
share, or $60.1 million, compared to
$0.46 per share, or $51.2 million, for the prior year period. Core
FFO in the first quarter of 2024 excluded executive severance costs
of $0.01 per share, which was
reflected in the Company's initial full-year 2024 guidance.
Core FFO in the first quarter of 2023 excluded the reversal of
previously expensed compensation related to a voluntary executive
departure of $0.01 per share. The
Company does not consider these items to be indicative of its
ongoing operating performance.
FFO and Core FFO 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.
Complete reconciliations containing adjustments from GAAP net
income to FFO and Core FFO, if applicable, and further information
regarding these non-GAAP measures can be found later in this
release. Per share amounts for net income, FFO and Core FFO are on
a diluted basis.
Operating Metrics
Key portfolio results for the total stabilized portfolio,
including the Company's pro rata share of unconsolidated joint
ventures, were as follows:
- Occupancy was 96.5% on March 31,
2024, compared to 97.3% on December
31, 2023 and 96.5% on March 31,
2023. On a same center basis (excluding Tanger Outlets
Asheville and Bridge Street Town Centre in Huntsville, AL, which were acquired in the
fourth quarter of 2023), occupancy was 97.1% on March 31,
2024, 97.9% on December 31, 2023 and
96.5% on March 31, 2023.
- Same center net operating income ("Same Center NOI"),
which is presented on a cash basis, increased 5.2% to $87.9 million for the first quarter of 2024 from
$83.6 million for the first quarter
of 2023 driven by higher rental revenues from increased base rent
and expense recoveries, as well as the benefit from certain expense
refunds, which were partially offset by additional snow removal
expenses compared to the prior year.
- Average tenant sales per square foot was $437 for the twelve months ended March 31, 2024 compared to $436 for the twelve months ended December 31, 2023 and $447 for the twelve months ended March 31, 2023.
- On a same center basis, average tenant sales per square foot
was $434 for the twelve months ended
March 31, 2024 compared to
$433 for the twelve months ended
December 31, 2023 and $447 for the twelve months ended March 31, 2023.
- The occupancy cost ratio ("OCR"), representing annualized
occupancy costs as a percentage of tenant sales, was 9.3% for the
twelve months ended March 31, 2024
compared to 9.3% for the twelve months ended December 31, 2023 and 8.8% for the twelve months
ended March 31, 2023.
- Lease termination fees (which are excluded from Same
Center NOI) for the total portfolio totaled $262,000 for the first quarter of 2024 compared
to $13,000 for the first quarter of
2023.
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 can be
found later in this release.
Leasing Activity
Leasing activity in the Company's portfolio continues to be
robust. For the total domestic portfolio, including the Company's
pro rata share of domestic unconsolidated joint ventures, total
renewed or re-tenanted leases (including leases for both comparable
and non-comparable space) executed during the twelve months ended
March 31, 2024 included 542 leases,
totaling over 2.3 million square feet, compared to 414 leases,
totaling nearly 1.7 million square feet, during the twelve months
ended March 31, 2023, a 38.9%
increase in square feet.
Blended average rental rates were positive for the ninth
consecutive quarter at 12.9% on a cash basis for leases executed
for comparable space during the twelve months ended March 31, 2024. These blended rent spreads are
comprised of re-tenanted rent spreads of 36.0% and renewal rent
spreads of 10.6%.
Relative to 2023, the Company continues to expect a higher
re-tenanting rate in 2024 as it focuses on portfolio enhancement
and further elevating and diversifying its retailer mix. As part of
this strategy, as of April 30, 2024,
Tanger has renewals executed or in process for 46.6% of the space
scheduled to expire during 2024 compared to 58.0% of expiring 2023
space as of April 30, 2023 (total
portfolio, including the Company's pro rata share of unconsolidated
joint ventures).
Dividend
On April 10, 2024, the Company's
Board of Directors approved a 5.8% increase in the dividend for
common shares from $1.04 to
$1.10 per share on an annualized
basis. Simultaneously, the Company's Board of Directors authorized
a quarterly cash dividend of $0.275
per share, payable on May 15, 2024 to
holders of record on April 30,
2024.
Balance Sheet and Liquidity
As previously announced, on April 12,
2024, Tanger's operating partnership, Tanger Properties
Limited Partnership, amended, increased and extended its unsecured
lines of credit. Key elements of the amendments include extending
the maturity date to April 2028, with
options to extend for an additional year to April 2029. Borrowing capacity was increased to
$620 million from $520 million, with an accordion feature to
increase total borrowing capacity to $1.2
billion, subject to lender approval. Additionally, the
ratings-based pricing grid was revised, including a reduction of 15
basis points at Tanger's current levels.
The following balance sheet and liquidity metrics are presented
for the total portfolio, including the Company's pro rata share of
unconsolidated joint ventures. As of March 31, 2024:
- Net debt to Adjusted EBITDAre (calculated as net debt
divided by Adjusted Earnings Before Interest, Taxes, Depreciation
and Amortization for Real Estate ("Adjusted EBITDAre")) improved to
5.7x for the twelve months ended March 31, 2024 from 5.8x for
the year ended December 31, 2023.
Management estimates that Net debt to Adjusted EBITDAre would be in
a range of 5.2x to 5.3x for both periods assuming a full twelve
months of Adjusted EBITDAre for Tanger Nashville, Tanger Asheville,
and Bridge Street Town Centre, which were added to the portfolio
during the fourth quarter of 2023.
- Interest coverage ratio (calculated as Adjusted EBITDAre
divided by interest expense) was 4.6x for the first quarter of 2024
and 4.8x for the twelve months ended March 31, 2024.
- Cash and cash equivalents and short-term investments totaled
$23.0 million with $474.0 million of availability on the Company's
$520.0 million unsecured lines of
credit, which were amended, increased and extended in April 2024, adding an additional $100.0 million of liquidity as noted
above.
- Total outstanding debt aggregated $1.6
billion with $112.2 million
(principal) of floating rate debt, representing approximately 7% of
total debt outstanding and 2% of total enterprise value.
- Weighted average interest rate was 4.1%, including executed
swaps, and weighted average term to maturity of outstanding debt,
including extension options, was approximately 4.4 years.
- Approximately 89% of the total portfolio's square footage was
unencumbered by mortgages with secured debt of $223.4 million (principal), representing 14% of
total debt outstanding.
- Funds Available for Distribution ("FAD") payout ratio was
54% for the first quarter of 2024.
Adjusted EBITDAre, Net debt and FAD are supplemental non-GAAP
financial measures of operating performance. Definitions of
Adjusted EBITDAre, Net debt and FAD and reconciliations to the
nearest comparable GAAP measures are included later in this
release.
Guidance for 2024
Based on the Company's results to date and its outlook for the
remainder of 2024, management is increasing its full-year 2024
guidance with its current expectations for net income, FFO and
Core FFO per share for 2024 as follows:
For the year ending
December 31, 2024:
|
|
Revised
|
|
Previous
|
|
|
Low
Range
|
High
Range
|
|
Low
Range
|
High
Range
|
Estimated diluted
net income per share
|
|
$
0.84
|
$
0.92
|
|
$
0.83
|
$
0.91
|
Depreciation and
amortization of real estate assets - consolidated and the
Company's share of unconsolidated joint ventures
|
|
1.18
|
1.18
|
|
1.18
|
1.18
|
Estimated diluted
FFO per share
|
|
$
2.02
|
$
2.10
|
|
$
2.01
|
$
2.09
|
Executive severance
costs
|
|
0.01
|
0.01
|
|
0.01
|
0.01
|
Estimated diluted
Core FFO per share
|
|
$
2.03
|
$
2.11
|
|
$
2.02
|
$
2.10
|
Tanger's estimates reflect the following key assumptions
(dollars in millions):
For the year ending
December 31, 2024:
|
|
Revised
|
|
Previous
|
|
|
Low
Range
|
High
Range
|
|
Low
Range
|
High
Range
|
Same Center NOI growth
- total portfolio at pro rata share
|
|
2.25 %
|
4.25 %
|
|
2.0 %
|
4.0 %
|
General and
administrative expense, excluding executive severance
|
|
$76.5
|
$79.5
|
|
$76.5
|
$79.5
|
Interest expense -
consolidated
|
|
$59.5
|
$61.5
|
|
$59.5
|
$61.5
|
Other income (expense)
(1)
|
|
$—
|
$2.0
|
|
$—
|
$2.0
|
Annual recurring
capital expenditures, renovations and second generation tenant
allowances
|
|
$50.0
|
$60.0
|
|
$50.0
|
$60.0
|
(1)
Includes interest income.
|
Weighted average diluted common shares are expected to range
from approximately 109 million to 110 million for earnings per
share and 114 million to 115 million for FFO and Core FFO per
share. The estimates above do not include the impact of the
acquisition or sale of any outparcels, properties or joint venture
interests, or any additional financing activity.
First Quarter 2024 Conference Call
Tanger will host a conference call to discuss its first quarter
2024 results for analysts, investors and other interested parties
on Wednesday, May 1, 2024, at 8:30 a.m.
Eastern Time. To access the conference call, listeners
should dial 1-877-605-1702. Alternatively, a live audio webcast of
this call will be available to the public on Tanger's Investor
Relations website, investors.tanger.com. A telephone replay of the
call will be available from May 1, 2024 at approximately
11:30 a.m. through May 15, 2024
at 11:59 p.m. by dialing
1-877-660-6853, replay access code #13745043. An online archive of
the webcast will also be available through May 15, 2024.
Upcoming Events
The Company is scheduled to participate in the following
upcoming events:
- A tour of Tanger Outlets Savannah on May 7, 2024 in connection with Wells Fargo's 27th
Annual Real Estate Securities Conference held at the Ritz Carlton
in Amelia Island, FL from May 8 through May
9, 2024
- BMO's 19th Annual Real Estate Conference held at the
InterContinental Barclay Hotel in New
York, NY on May 8, 2024,
including a panel discussion with Stephen
Yalof, President and Chief Executive Officer, at
10:15 a.m. Eastern Time
- ICSC Las Vegas held at the Las
Vegas Convention Center in Las
Vegas, NV from May 20 through May 21,
2024
- Nareit's REITweek: 2024 Investor Conference held at the New
York Hilton Midtown in New York,
NY from June 4 through June 6,
2024, including a company presentation on June 4, 2024 at 10:15 a.m.
Eastern Time. Additional details about the presentation,
including a live audio webcast, will be available to the public on
Tanger's Investor Relations website, investors.tanger.com
About Tanger®
Tanger Inc. (NYSE: SKT) is a leading owner and operator of
outlet and open-air retail shopping destinations, with over 43
years of expertise in the retail and outlet shopping industries.
Tanger's portfolio of 38 outlet centers, one adjacent managed
center and one open-air lifestyle center comprises over 15 million
square feet well positioned across tourist destinations and vibrant
markets in 20 U.S. states and Canada. A publicly traded REIT since 1993,
Tanger continues to innovate the retail experience for its shoppers
with over 3,000 stores operated by more than 700 different brand
name companies. Tanger is furnishing a Form 8-K with the Securities
and Exchange Commission ("SEC") that includes a supplemental
information package for the quarter ended March 31, 2024. For
more information on Tanger, call 1-800-4TANGER or visit the
Company's website at www.tanger.com.
The Company uses, and intends to continue to use, its Investor
Relations website, which can be found at investors.tanger.com, as a
means of disclosing material nonpublic information and for
complying with its disclosure obligations under Regulation FD.
Additional information about the Company can also be found through
social media channels. The Company encourages investors and others
interested in the Company to review the information on its Investor
Relations website and on social media channels. The information
contained on, or that may be accessed through, our website or
social media platforms is not incorporated by reference into, and
is not a part of, this document.
Safe Harbor Statement
Certain statements made in this earnings release contain
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. We intend 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 included this
statement for purposes of complying with these safe harbor
provisions. Forward-looking statements, which are based on certain
assumptions and describe our future plans, strategies, beliefs and
expectations, are generally identifiable by use of the words
"anticipate," "believe," "can," "continue," "could," "designed,"
"estimate," "expect," "forecast," "goal," "intend," "may," "might,"
"plan," "possible," "potential," "predict," "project," "should,"
"target," "will," "would," or similar expressions. Such
forward-looking statements include the Company's expectations
regarding future financial results and assumptions underlying that
guidance, long-term growth, trends in retail traffic and tenant
revenues, development initiatives and strategic partnerships, the
anticipated impact of the Company's newly acquired assets in
Huntsville and Asheville, as well as its newly opened
Nashville development and related
costs and anticipated yield, expectations regarding operational
metrics, renewal trends, new revenue streams, its strategy and
value proposition to retailers, participation in upcoming events,
uses of and efforts to reduce costs of capital, liquidity, dividend
payments and cash flows.
Other important factors that may cause actual results to differ
materially from current expectations include, but are not limited
to: our inability to develop new retail centers or expand existing
retail centers successfully; risks related to the economic
performance and market value of our retail centers; the relative
illiquidity of real property investments; impairment charges
affecting our properties; our acquisitions or dispositions of
assets may not achieve anticipated results; competition for the
acquisition and development of retail centers, and our inability to
complete the acquisitions of retail centers we may identify;
competition for tenants with competing retail centers; the
diversification of our tenant mix and our entry into the operation
of full price retail may not achieve our expected results;
environmental regulations affecting our business; risks associated
with possible terrorist activity or other acts or threats of
violence and threats to public safety; risks related to the impact
of macroeconomic conditions, including rising interest rates and
inflation, on our tenants and on our business, financial condition,
liquidity, results of operations and compliance with debt
covenants; our dependence on rental income from real property; the
fact that certain of our leases 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; our
dependence on the results of operations of our retailers and their
bankruptcy, early termination or closing could adversely affect us;
the impact of geopolitical conflicts; the immediate and long-term
impact of the outbreak of a highly infectious or contagious disease
on our tenants and on our business (including the impact of actions
taken to contain the outbreak or mitigate its impact); 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 climate change; increased costs and reputational
harm associated with the increased focus on environmental,
sustainability and social initiatives; 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; our potential failure to qualify as a REIT; our legal
obligation to pay dividends to our shareholders; legislative or
regulatory actions that could adversely affect our shareholders,
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 on our systems; the
uncertainties of costs to comply with regulatory changes (including
potential costs to comply with proposed rules of the SEC to
standardize climate-related disclosures); and other important
factors which may cause actual results to differ materially from
current expectations include, but are not limited to, those 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, 2023.
We qualify all of our forward-looking statements by these
cautionary statements. The forward-looking statements in this
earnings release are only predictions. We have based these
forward-looking statements largely on our current expectations and
projections about future events and financial trends that we
believe may affect our business, financial condition and results of
operations. Because forward-looking statements are inherently
subject to risks and uncertainties, some of which cannot be
predicted or quantified, you should not rely on these
forward-looking statements as predictions of future events. The
events and circumstances reflected in our forward-looking
statements may not be achieved or occur and actual results could
differ materially from those projected in the forward-looking
statements. Except as required by applicable law, we do not plan to
publicly update or revise any forward-looking statements contained
herein, whether as a result of any new information, future events,
changed circumstances or otherwise.
|
|
|
|
|
Investor Contact
Information
|
|
|
Media Contact
Information
|
|
|
|
|
|
Doug
McDonald
|
|
|
|
KWT Global
|
SVP, Treasurer and
Investments
|
|
|
|
Tanger@kwtglobal.com
|
336-856-6066
|
|
|
|
|
tangerir@tanger.com
|
|
|
|
|
TANGER INC. AND
SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands,
except per share data)
(Unaudited)
|
|
|
Three months
ended
|
|
March
31,
|
|
2024
|
|
2023
|
Revenues:
|
|
|
|
Rental
revenues
|
$117,809
|
|
$103,582
|
Management, leasing
and other services
|
2,278
|
|
1,914
|
Other
revenues
|
3,284
|
|
3,447
|
Total
revenues
|
123,371
|
|
108,943
|
Expenses:
|
|
|
|
Property
operating
|
35,465
|
|
33,148
|
General and
administrative (1)
|
19,490
|
|
17,434
|
Depreciation and
amortization
|
33,860
|
|
25,893
|
Total
expenses
|
88,815
|
|
76,475
|
Other income
(expense):
|
|
|
|
Interest
expense
|
(14,353)
|
|
(12,343)
|
Other income
(expense)
|
587
|
|
2,800
|
Total other income
(expense)
|
(13,766)
|
|
(9,543)
|
Income before equity
in earnings of unconsolidated joint ventures
|
20,790
|
|
22,925
|
Equity in earnings of
unconsolidated joint ventures
|
2,516
|
|
1,935
|
Net
income
|
23,306
|
|
24,860
|
Noncontrolling
interests in Operating Partnership
|
(973)
|
|
(1,071)
|
Noncontrolling
interests in other consolidated partnerships
|
80
|
|
(248)
|
Net income
attributable to Tanger Inc.
|
22,413
|
|
23,541
|
Allocation of earnings
to participating securities
|
(231)
|
|
(199)
|
Net income available
to common shareholders of Tanger Inc.
|
$22,182
|
|
$23,342
|
|
|
|
|
Basic earnings per
common share:
|
|
|
|
Net income
|
$0.20
|
|
$0.22
|
|
|
|
|
Diluted earnings per
common share:
|
|
|
|
Net income
|
$0.20
|
|
$0.22
|
|
(1) The 2024
period includes $1.6 million of executive severance costs. The 2023
period includes the reversal of $0.8 million of previously expensed
compensation related to a voluntary executive departure.
|
TANGER INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(in thousands,
except share data)
(Unaudited)
|
|
|
March
31,
|
|
December
31,
|
|
2024
|
|
2023
|
Assets
|
|
|
|
Rental
property:
|
|
|
|
Land
|
$303,605
|
|
$303,605
|
Buildings, improvements and fixtures
|
2,944,077
|
|
2,938,434
|
Construction in progress
|
39,249
|
|
29,201
|
|
3,286,931
|
|
3,271,240
|
Accumulated depreciation
|
(1,347,011)
|
|
(1,318,264)
|
Total rental property,
net
|
1,939,920
|
|
1,952,976
|
Cash and
cash equivalents
|
8,137
|
|
12,778
|
Short-term
investments
|
7,739
|
|
9,187
|
Investments in unconsolidated joint ventures
|
71,701
|
|
71,900
|
Deferred
lease costs and other intangibles, net
|
86,436
|
|
91,269
|
Operating
lease right-of-use assets
|
77,082
|
|
77,400
|
Prepaids
and other assets
|
110,151
|
|
108,609
|
Total assets
|
$2,301,166
|
|
$2,324,119
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Liabilities
|
|
|
|
Debt:
|
|
|
|
Senior, unsecured
notes, net
|
$1,040,310
|
|
$1,039,840
|
Unsecured term loan,
net
|
322,537
|
|
322,322
|
Mortgages payable,
net
|
62,772
|
|
64,041
|
Unsecured lines of
credit
|
46,000
|
|
13,000
|
Total debt
|
1,471,619
|
|
1,439,203
|
Accounts payable and
accrued expenses
|
77,922
|
|
118,505
|
Operating lease
liabilities
|
85,757
|
|
86,076
|
Other
liabilities
|
86,145
|
|
89,022
|
Total liabilities
|
1,721,443
|
|
1,732,806
|
Commitments and
contingencies
|
|
|
|
Equity
|
|
|
|
Tanger
Inc.:
|
|
|
|
Common shares, $0.01
par value, 300,000,000 shares authorized, 109,366,452 and
108,793,251 shares issued and outstanding at March 31, 2024
and December 31,
2023, respectively
|
1,094
|
|
1,088
|
Paid in
capital
|
1,073,313
|
|
1,079,387
|
Accumulated distributions in excess of net income
|
(497,330)
|
|
(490,171)
|
Accumulated other comprehensive loss
|
(21,280)
|
|
(23,519)
|
Equity attributable to Tanger Inc.
|
555,797
|
|
566,785
|
Equity attributable
to noncontrolling interests:
|
|
|
|
Noncontrolling
interests in Operating Partnership
|
23,926
|
|
24,528
|
Noncontrolling
interests in other consolidated partnerships
|
—
|
|
—
|
Total equity
|
579,723
|
|
591,313
|
Total liabilities and equity
|
$2,301,166
|
|
$2,324,119
|
TANGER INC. AND
SUBSIDIARIES
CENTER
INFORMATION
(Unaudited)
|
|
|
|
March
31,
|
|
|
2024
|
|
2023
|
Gross Leasable Area
Open at End of Period (in thousands):
|
|
|
|
|
Consolidated
|
|
12,692
|
|
11,352
|
Unconsolidated
|
|
2,113
|
|
2,113
|
Pro rata share of
unconsolidated
|
|
1,056
|
|
1,056
|
Managed
|
|
758
|
|
457
|
|
|
|
|
|
Total Owned and/or
Managed Properties (1)
|
|
15,562
|
|
13,922
|
Total Owned
Properties including pro rata share of unconsolidated JVs
(1)
|
|
13,748
|
|
12,408
|
|
|
|
|
|
Centers in Operation
at End of Period:
|
|
|
|
|
Consolidated
|
|
32
|
|
29
|
Unconsolidated
|
|
6
|
|
6
|
Managed
|
|
2
|
|
1
|
Total Owned and/or
Managed Properties
|
|
40
|
|
36
|
|
|
|
|
|
Ending
Occupancy:
|
|
|
|
|
Consolidated
(2)
|
|
96.5 %
|
|
96.4 %
|
Unconsolidated
|
|
97.4 %
|
|
97.8 %
|
Total Owned
Properties including pro rata share of unconsolidated JVs
(2)
|
|
96.5 %
|
|
96.5 %
|
|
|
|
|
|
Total U.S. States
Operated in at End of Period (3)
|
|
20
|
|
20
|
|
(1) Amounts may
not recalculate due to the effect of rounding.
|
(2) Metrics for
March 2024 include the results of Tanger Outlets Asheville and
Bridge Street Town Centre, both of which were acquired in the
fourth quarter of 2023, and exclude the results of Tanger Outlets
Nashville, which opened during the fourth quarter of 2023 and has
not yet stabilized.
|
(3) The Company
also has an ownership interest in two centers located in Ontario,
Canada.
|
TANGER INC. AND
SUBSIDIARIES
RECONCILIATION OF
GAAP TO NON-GAAP SUPPLEMENTAL MEASURES (1)
(in thousands,
except per share)
(Unaudited)
|
|
Below is a
reconciliation of Net Income to FFO and Core FFO:
|
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2024
|
|
2023
|
Net
income
|
|
$23,306
|
|
$24,860
|
Adjusted
for:
|
|
|
|
|
Depreciation and
amortization of real estate assets - consolidated
|
|
33,052
|
|
25,172
|
Depreciation and
amortization of real estate assets - unconsolidated joint
ventures
|
|
2,540
|
|
2,670
|
FFO
|
|
58,898
|
|
52,702
|
FFO attributable to
noncontrolling interests in other consolidated
partnerships
|
|
80
|
|
(248)
|
Allocation of earnings
to participating securities
|
|
(418)
|
|
(424)
|
FFO available to
common shareholders (2)
|
|
$58,560
|
|
$52,030
|
As further adjusted
for:
|
|
|
|
|
Executive
departure-related adjustments (3)
|
|
1,554
|
|
(806)
|
Impact of above
adjustments to the allocation of earnings to participating
securities
|
|
(10)
|
|
6
|
Core FFO available
to common shareholders (2)
|
|
$60,104
|
|
$51,230
|
FFO available to
common shareholders per share - diluted (2)
|
|
$0.51
|
|
$0.47
|
Core FFO available
to common shareholders per share - diluted (2)
|
|
$0.52
|
|
$0.46
|
|
|
|
|
|
Weighted Average
Shares:
|
|
|
|
|
Basic weighted average
common shares
|
|
108,369
|
|
104,088
|
Effect of notional
units
|
|
731
|
|
693
|
Effect of outstanding
options and restricted common shares
|
|
923
|
|
741
|
Diluted weighted
average common shares (for earnings per share
computations)
|
|
110,023
|
|
105,522
|
Exchangeable operating
partnership units
|
|
4,708
|
|
4,738
|
Diluted weighted
average common shares (for FFO and Core FFO per share
computations) (2)
|
|
114,731
|
|
110,260
|
|
(1) Refer to
Non-GAAP Definitions beginning on page xv for definitions of the
non-GAAP supplemental measures used in this release.
|
(2) 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.
|
(3) For the 2024
period, represents executive severance costs. For the 2023 period,
represents the reversal of previously expensed compensation related
to a voluntary executive departure.
|
Below is a
reconciliation of FFO to FAD (1):
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2024
|
|
2023
|
FFO available to
common shareholders
|
|
$58,560
|
|
$52,030
|
Adjusted
for:
|
|
|
|
|
Corporate depreciation
excluded above
|
|
808
|
|
721
|
Amortization of
finance costs
|
|
832
|
|
808
|
Amortization of net
debt discount
|
|
174
|
|
144
|
Amortization of
equity-based compensation
|
|
3,497
|
|
2,271
|
Straight-line rent
adjustments
|
|
511
|
|
680
|
Market rent
adjustments
|
|
95
|
|
133
|
Second generation
tenant allowances and lease incentives
|
|
(4,283)
|
|
(2,030)
|
Capital
improvements
|
|
(5,357)
|
|
(6,340)
|
Adjustments from
unconsolidated joint ventures
|
|
(103)
|
|
(47)
|
FAD available to
common shareholders (2)
|
|
$54,734
|
|
$48,370
|
Dividends per
share
|
|
$0.26
|
|
$0.22
|
FFO payout
ratio
|
|
51 %
|
|
47 %
|
FAD payout
ratio
|
|
54 %
|
|
50 %
|
Diluted weighted
average common shares (2)
|
|
114,731
|
|
110,260
|
|
(1) Refer to page
ix for a reconciliation of net income to FFO available to common
shareholders.
|
(2) 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 to Portfolio NOI and Same Center NOI
for the consolidated portfolio and total
portfolio at pro rata share:
|
|
|
|
Three months
ended
|
|
|
|
March
31,
|
|
|
|
2024
|
|
2023
|
|
Net
income
|
|
$23,306
|
|
$24,860
|
|
Adjusted to
exclude:
|
|
|
|
|
|
Equity in earnings of
unconsolidated joint ventures
|
|
(2,516)
|
|
(1,935)
|
|
Interest
expense
|
|
14,353
|
|
12,343
|
|
Other
income
|
|
(587)
|
|
(2,800)
|
|
Depreciation and
amortization
|
|
33,860
|
|
25,893
|
|
Other non-property
income
|
|
(395)
|
|
(48)
|
|
Corporate general and
administrative expenses
|
|
19,489
|
|
17,426
|
|
Non-cash adjustments
(1)
|
|
609
|
|
819
|
|
Lease termination
fees
|
|
(262)
|
|
(6)
|
|
Portfolio NOI -
Consolidated
|
|
87,857
|
|
76,552
|
|
Non-same center NOI -
Consolidated
|
|
(7,256)
|
|
146
|
|
Same Center NOI -
Consolidated (2)
|
|
$80,601
|
|
$76,698
|
|
|
|
|
|
|
|
Portfolio NOI -
Consolidated
|
|
$87,857
|
|
$76,552
|
|
Pro rata share of
unconsolidated joint ventures (3)
|
|
7,331
|
|
6,878
|
|
Portfolio NOI -
Total portfolio at pro rata share (3)
|
|
95,188
|
|
83,430
|
|
Non-same center NOI -
Total portfolio at pro rata share (3)
|
|
(7,256)
|
|
146
|
|
Same Center NOI -
Total portfolio at pro rata share (2) (3)
|
|
$87,932
|
|
$83,576
|
|
(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)
Centers excluded from Same Center NOI:
|
Nashville
|
October 2023
|
New
Development
|
Consolidated
|
Asheville
|
November
2023
|
Acquired
|
Consolidated
|
Huntsville
|
November
2023
|
Acquired
|
Consolidated
|
(3) Pro rata share
metrics are presented on a constant currency basis. Constant
currency is a non-GAAP measure, calculated by applying the average
foreign exchange rate for the current period to all periods
presented.
|
Below are
reconciliations of Net Income to Adjusted EBITDA:
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2024
|
|
2023
|
Net
income
|
|
$23,306
|
|
$24,860
|
Adjusted to
exclude:
|
|
|
|
|
Interest expense,
net
|
|
14,151
|
|
9,779
|
Income tax expense
(benefit)
|
|
(335)
|
|
(200)
|
Depreciation and
amortization
|
|
33,860
|
|
25,893
|
Executive
departure-related adjustments (1)
|
|
1,554
|
|
(806)
|
Adjusted
EBITDA
|
|
$72,536
|
|
$59,526
|
|
|
|
|
|
Twelve months
ended
|
|
|
March
31,
|
|
December
31,
|
|
|
2024
|
|
2023
|
Net
income
|
|
$102,328
|
|
$103,882
|
Adjusted to
exclude:
|
|
|
|
|
Interest expense,
net
|
|
42,521
|
|
38,149
|
Income tax expense
(benefit)
|
|
(543)
|
|
(408)
|
Depreciation and
amortization
|
|
116,856
|
|
108,889
|
Executive
departure-related adjustments (1)
|
|
1,554
|
|
(806)
|
Adjusted
EBITDA
|
|
$262,716
|
|
$249,706
|
|
(1) For the 2024
period, represents executive severance costs. For the 2023 period,
represents the reversal of previously expensed compensation related
to a voluntary executive departure.
|
Below are
reconciliations of Net Income to EBITDAre and Adjusted
EBITDAre:
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
|
2024
|
|
2023
|
Net
income
|
|
$23,306
|
|
$24,860
|
Adjusted to
exclude:
|
|
|
|
|
Interest expense,
net
|
|
14,151
|
|
9,779
|
Income tax expense
(benefit)
|
|
(335)
|
|
(200)
|
Depreciation and
amortization
|
|
33,860
|
|
25,893
|
Pro rata share of
interest expense, net - unconsolidated joint ventures
|
|
2,169
|
|
2,131
|
Pro rata share of
depreciation and amortization - unconsolidated joint
ventures
|
|
2,540
|
|
2,670
|
EBITDAre
|
|
$75,691
|
|
$65,133
|
Executive
departure-related adjustments (1)
|
|
1,554
|
|
(806)
|
Adjusted
EBITDAre
|
|
$77,245
|
|
$64,327
|
|
|
|
|
|
Twelve months
ended
|
|
|
March
31,
|
|
December
31,
|
|
|
2024
|
|
2023
|
Net
income
|
|
$102,328
|
|
$103,882
|
Adjusted to
exclude:
|
|
|
|
|
Interest expense,
net
|
|
42,521
|
|
38,149
|
Income tax expense
(benefit)
|
|
(543)
|
|
(408)
|
Depreciation and
amortization
|
|
116,856
|
|
108,889
|
Pro rata share of
interest expense, net - unconsolidated joint ventures
|
|
8,817
|
|
8,779
|
Pro rata share of
depreciation and amortization - unconsolidated joint
ventures
|
|
10,384
|
|
10,514
|
EBITDAre
|
|
$280,363
|
|
$269,805
|
Executive
departure-related adjustments (1)
|
|
1,554
|
|
(806)
|
Adjusted
EBITDAre
|
|
$281,917
|
|
$268,999
|
|
(1) For the 2024
period, represents executive severance costs. For the 2023 period,
represents the reversal of previously expensed compensation related
to a voluntary executive departure.
|
Below is a
reconciliation of Total Debt to Net Debt for the consolidated
portfolio and total portfolio at pro rata share:
|
|
|
|
March 31,
2024
|
|
|
Consolidated
|
|
Pro
Rata
Share of
Unconsolidated
JVs
|
|
Total
at
Pro Rata
Share
|
|
|
|
|
Total
debt
|
|
$1,471,619
|
|
$159,645
|
|
$1,631,264
|
Less:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
(8,137)
|
|
(7,094)
|
|
(15,231)
|
Short-term investments
(1)
|
|
(7,739)
|
|
—
|
|
(7,739)
|
Total cash and cash
equivalents and short-term investments
|
|
(15,876)
|
|
(7,094)
|
|
(22,970)
|
Net
debt
|
|
$1,455,743
|
|
$152,551
|
|
$1,608,294
|
|
|
|
|
|
December 31,
2023
|
|
|
Consolidated
|
|
Pro
Rata
Share of
Unconsolidated
JVs
|
|
Total
at
Pro Rata
Share
|
|
|
|
|
Total
debt
|
|
$1,439,203
|
|
$159,979
|
|
$1,599,182
|
Less:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
(12,778)
|
|
(7,020)
|
|
(19,798)
|
Short-term investments
(1)
|
|
(9,187)
|
|
—
|
|
(9,187)
|
Total cash and cash
equivalents and short-term investments
|
|
(21,965)
|
|
(7,020)
|
|
(28,985)
|
Net
debt
|
|
$1,417,238
|
|
$152,959
|
|
$1,570,197
|
|
(1) Represents
short-term bank deposits with initial maturities greater than three
months and less than or equal to one year.
|
NON-GAAP DEFINITIONS
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
unitholders 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
We present Core Funds From Operations ("Core FFO") 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 above. 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 (defined 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), 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
and lease incentives, recurring capital improvement expenditures,
and our share of the items listed above for our unconsolidated
joint ventures. FAD is useful in analyzing the portion of cash flow
that is available for dividends to stockholders. 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 unitholders 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, loss on early extinguishment of debt 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
present Portfolio NOI and Same Center NOI on both a consolidated
and total portfolio, including pro rata share of unconsolidated
joint ventures, basis.
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. Portfolio and Same Center
NOI should not be considered an alternative to net income as an
indication of our performance or to cash flows as a measure of our
liquidity or our ability to make distributions. 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 net interest expense, income taxes (if applicable),
depreciation and amortization, gains and losses on sale of
operating properties, joint venture properties, outparcels and
other assets, 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 voluntary retirement plan and other executive officer
severance, certain executive departure-related adjustments, gain on
sale of non-real estate asset, casualty gains and losses, gains and
losses on early 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 net interest expense, income taxes (if applicable),
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 early extinguishment of debt, net, casualty gains and
losses, compensation related to voluntary retirement plan and other
executive officer severance, gain on sale of non-real estate asset,
gains and losses on sale of outparcels, 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 net 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.
Net Debt
We define Net Debt as Total Debt less Cash and Cash Equivalents
and Short-Term Investments and present this metric for both the
consolidated portfolio and for the total portfolio, including the
consolidated portfolio and the Company's pro rata share of
unconsolidated joint ventures. Net debt is a component of the Net
debt to Adjusted EBITDA ratio, which is defined as Net debt for the
respective portfolio divided by Adjusted EBITDA (consolidated
portfolio) or Adjusted EBITDAre (total portfolio at pro rata
share). We use the Net debt to Adjusted EBITDA and the Net debt to
Adjusted EBITDAre ratios to evaluate the Company's leverage. We
believe this measure is an important indicator of the Company's
ability to service its long-term debt obligations.
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SOURCE Tanger