Tanger Reports Second Quarter 2012 Results
Second Quarter Same Center NOI Increases 7.0%; Funds From Operations Increases 30.4% for the Quarter
(firmenpresse) - GREENSBORO, NC -- (Marketwire) -- 07/31/12 -- (NYSE: SKT) today reported its financial results for the quarter and six months ended June 30, 2012. Funds from operations ("FFO") available to common shareholders, a widely accepted supplemental measure of REIT performance, increased 30.4% for the three months ended June 30, 2012 to $38.6 million, or $0.39 per share, as compared to FFO of $29.6 million, or $0.32 per share, for the three months ended June 30, 2011. For the six months ended June 30, 2012, FFO increased 25.3% to $74.2 million, or $0.75 per share, as compared to FFO of $59.2 million, or $0.64 per share, for the six months ended June 30, 2011.
"Our solid operating performance continued through the second quarter. Same center net operating income increased by 7.0% for the quarter and 6.9% for the first half of the year. Tenant comparable sales increased 3.9% for the rolling twelve months. Leasing activity remained robust, with a positive second quarter blended rental spread for renewals and re-tenanted space of 24.7%," commented Steven B. Tanger, President and Chief Executive Officer. "During the quarter we announced a new joint venture to develop a designer outlet center at Foxwoods Resort Casino. Located in Mashantucket, Connecticut, Foxwoods attracts more than 40,000 visitors each day. This exciting venture further strengthens our pipeline of external growth opportunities throughout the United States and Canada," he added.
FFO for all periods shown was impacted by a number of charges as described in the summary below (in thousands, except per share amounts):
(1) Includes our share of acquisition costs, abandoned development costs and gain on early extinguishment of debt from unconsolidated joint ventures.
Net income available to common shareholders for the three months ended June 30, 2012 increased 24.3% to $11.5 million or $0.12 per share, as compared to net income of $9.3 million, or $0.11 per share for the three months ended June 30, 2011. For the six months ended June 30, 2012 net income available to common shareholders increased 5.5% to $19.5 million or $0.21 per share, as compared to net income of $18.5 million, or $0.23 per share for the six months ended June 30, 2011. Net income available to common shareholders for the above periods was also impacted by the charges described above.
Net income and FFO per share amounts above are on a diluted basis. FFO and AFFO are supplemental non-GAAP financial measures 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 and to AFFO are included in this release.
7.0% increase in same center net operating income during the quarter, 6.9% year to date
24.7% blended increase in average base rental rates on renewed and released space during the quarter, 23.7% year to date
98.0% period-end consolidated portfolio occupancy rate at June 30, 2012, up from 97.8% at June 30, 2011 and 97.3% at March 31, 2012
3.9% increase in reported tenant comparable sales for the rolling twelve months ended June 30, 2012 to $375 per square foot
25.0% debt-to-total market capitalization ratio as of June 30, 2012
4.08 times interest coverage for the second quarter ended June 30, 2012
Upgrade in outlook received from Moody's Investor Services from Baa2 Stable to Baa2 Positive
Announced joint venture for the development of a Tanger Outlet Center at Foxwoods Resort Casino in Mashantucket, Connecticut
During the first six months of 2012, Tanger executed 334 leases, totaling 1,508,000 square feet throughout its consolidated portfolio. Lease renewals during the first six months accounted for 1,189,000 square feet, which generated a 14.7% increase in average base rental rates and represented 65.4% of the square feet originally scheduled to expire during 2012. Base rental increases on re-tenanted space during the first six months averaged 54.5% and accounted for the remaining 319,000 square feet.
Same center net operating income increased 7.0% for the second quarter of 2012 compared to 3.8% for the second quarter of last year and increased 6.9% for the first six months of 2012 compared to 4.9% for the same period last year. Reported tenant comparable sales for Tanger's consolidated properties for the rolling twelve months ended June 30, 2012 increased 3.9% to $375 per square foot. Tenant comparable sales for the three months ended June 30, 2012 increased 2.5%.
During the second quarter of 2012, construction continued on a new Tanger Outlet Center located in Texas City (Houston), Texas. The center is located approximately 30 miles south of Houston and 20 miles north of Galveston on the highly traveled Interstate 45, off Exit 17 on Holland Road. Houston is the fourth largest U.S. city, and Galveston is a popular Gulf Coast getaway destination that attracts over 5 million visitors a year. The center will feature over 85 brand name and designer outlet stores in the first phase of approximately 350,000 square feet, with ample room for expansion for a total build out of approximately 470,000 square feet. Tanger currently expects the center to be completed in time for a grand opening celebration to be held on October 19, 2012.
Construction also continued on Tanger Outlets Westgate in Glendale, Arizona. Situated on 38-acres, the outlet center is located on Loop 101 and Glendale Avenue in Western Phoenix. This site is adjacent to Westgate City Center, Jobing.com Arena, University of Phoenix Stadium, Cabela's and The Renaissance Glendale Hotel and Spa. This center will offer some 80 brand name outlet stores in the first phase which will contain approximately 330,000 square feet. Tanger currently expects the center to be completed in time for a November 15, 2012 grand opening celebration.
On June 18, 2012, Tanger and Gordon Group Holdings, LLC announced they have entered into an agreement to develop an upscale outlet center at Foxwoods Resort Casino in Mashantucket, Connecticut on the Mashantucket Pequot Indian Reservation. The proposed 312,000 square foot center is designed to connect the casino floors of the resort's two casinos, the MGM Grand and the Grand Pequot Casino. Foxwoods attracts approximately 16 million visitors annually and has more gaming square footage than any other casino in the country.
Tanger has announced two additional domestic sites located in Scottsdale, Arizona and in National Harbor, a waterfront resort in the Washington, DC metro area. In Canada, Tanger and RioCan Real Estate Investment Trust have announced plans to develop a site in Kanata, Ontario in the Ottawa market and plans to expand Tanger Outlets Cookstown from 156,000 square feet to approximately 320,000 square feet. Additionally, Tanger and RioCan have entered into an agreement with Orlando Corporation to create a strategic alliance to develop designer outlet opportunities on land within Heartland Town Centre, located in the western Greater Toronto Area. All of these projects are currently in the predevelopment phase.
As of June 30, 2012, Tanger had a total market capitalization of approximately $4.2 billion including $1.1 billion of debt outstanding, equating to a 25.0% debt-to-total market capitalization ratio. As of June 30, 2012, 63.0% of Tanger's debt was at fixed interest rates and the company had $141.2 million outstanding on its $520.0 million in available unsecured lines of credit. During the second quarter of 2012, Tanger continued to maintain a strong interest coverage ratio of 4.08 times.
Based on Tanger's internal budgeting process, the company's view on current market conditions, and the strength and stability of its core portfolio, management currently believes its net income available to common shareholders for 2012 will be between $0.58 and $0.62 per share and its FFO available to common shareholders for 2012 will be between $1.59 and $1.63 per share.
The company's earnings estimates reflect a projected increase in same-center net operating income of between 5% and 6%. The company's estimates do not include the impact of any additional rent termination fees, any additional potential refinancing transactions, the sale of any out parcels of land, or the sale or acquisition of any properties. The following table provides the reconciliation of estimated diluted net income per share to estimated diluted FFO per share:
Tanger will host a conference call to discuss its second quarter results for analysts, investors and other interested parties on Wednesday, August 1, 2012, 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 Second Quarter 2012 Financial Results call. Alternatively, the call will be web cast by SNL IR Solutions and can be accessed at Tanger Factory Outlet Centers, Inc.'s web site by clicking the Investor Relations link on . A telephone replay of the call will be available from August 1, 2012 at 1:00 p.m. eastern time through 11:59 p.m., August 8, 2012 by dialing 1-855-859-2056, conference ID # 97394137. An online archive of the broadcast will also be available through August 8, 2012.
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 in 25 states coast to coast and in Canada, totaling approximately 11.9 million square feet leased to over to 2,500 stores operated by more than 435 different brand name companies. More than 175 million shoppers visit Tanger Factory Outlet Centers, Inc. annually. Tanger is filing a Form 8-K with the Securities and Exchange Commission that includes a supplemental information package for the quarter ended June 30, 2012. For more information on Tanger Outlet Centers, call 1-800-4TANGER or visit the company's web site at .
This news release contains forward-looking statements within the meaning of federal securities laws. These statements include, but are not limited to, estimates of future net income per share, FFO per share, same center net operating income as well as other statements regarding the expected timing of the grand openings of the current developments, the company's implementation and progress of its outlet strategy in Canada through a joint venture with RioCan Real Estate Investment Trust, the renewal and re-tenanting of space, tenant sales and sales trends, interest rates, coverage of the current dividend and management's beliefs, plans, estimates, intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. These forward-looking statements are subject to risks and uncertainties. Actual results could differ materially from those projected due to various factors including, but not limited to, the risks associated with general economic and real estate conditions in the United States and Canada, the company's ability to meet its obligations on existing indebtedness or refinance existing indebtedness on favorable terms, the availability and cost of capital, the company's ability to lease its properties, the company's ability to implement its plans and strategies for joint venture properties that it does not fully control, the company's inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise, and competition. For a more detailed discussion of the factors that affect our operating results, interested parties should review the Tanger Factory Outlet Centers, Inc. Annual Report on Form 10-K for the fiscal year ended December 31, 2011.
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 31.07.2012 - 20:05 Uhr
Sprache: Deutsch
News-ID 170415
Anzahl Zeichen: 0
contact information:
Town:
GREENSBORO, NC
Kategorie:
Diese Pressemitteilung wurde bisher 264 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Tanger Reports Second Quarter 2012 Results"
steht unter der journalistisch-redaktionellen Verantwortung von
Tanger Factory Outlet Centers, Inc. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
