August 5, 2014 1 DISCLAIMER This presentation includes time - PowerPoint PPT Presentation

August 5, 2014 1

DISCLAIMER This presentation includes time ‐ sensitive information that may be accurate only as of today’s date, August 5, 2014. Estimates of future net income per share, funds from operations per share, adjusted funds from operations per share and certain other matters discussed in this presentation regarding the state of the industry, our growth expectations and prospects, our development, remerchandising and financial strategies, the renewal and re ‐ tenanting of space, tenant demand for outlet space in the US and Canada, our plans for new developments and expansions, including the commencement of construction, access to capital, our ability to acquire assets opportunistically, our intentions to reinvest excess cash flow, interest rates, funds from operations, adjusted funds from operations and coverage of the current dividend may be forward ‐ looking statements within the meaning of the federal securities laws. 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 local real estate conditions in the US 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, 2013. 2

WHY TANGER?  Well ‐ positioned for growth  Financial stewardship  Recession resiliency  Outlet expertise & focus  Proven record of value creation 3

four ‐ legged GROWTH 4

ORGANIC GROWTH Straight ‐ line Blended Same Center NOI Growth (1) Rental Increases (1) 22.9% 3.3% 2Q14 YTD 2Q14 YTD 4.2% 22.1% 2Q13 YTD 2Q13 YTD 24.1% 4.3% 2013 2013 6.0% 2012 25.5% 2012 5.3% 2011 23.4% 2011 2.6% 2010 13.8% 2010 1.4% 2009 14.3% 2009 4.1% 2008 25.9% 2008 Tenant occupancy cost ratio has only increased 120 basis points to 8.6% for 2013 from 7.4% for 2006 (see page 31 of appendix) 1. Consolidated outlet centers 5

domestic RUNWAY DOMESTIC RUNWAY The Outlet Industry is Small – we estimate about 60 million square feet of quality outlet space, which is smaller than the retail space in the city of Chicago RECENTLY COMPLETED  National Harbor (Washington, DC metro area) opened November 22, 2013 Tenant demand for  Charlotte, NC opened July 31, 2014 outlet space continues for developers who have UNDER CONSTRUCTION  Foxwoods Resort in Mashantucket, CT access to capital and the  Savannah, GA expertise to deliver new  Center expansions in Glendale, AZ; Branson, MO; and Park City, UT outlet projects PRE ‐ DEVELOPMENT  Grand Rapids, MI  Columbus, OH OTHER ANNOUNCED PROJECTS  Cheshire, CT SHADOW PIPELINE  Site selection continues in other identified markets that are not served or underserved by the outlet industry 6

CANADIAN PLATFORM The Next Frontier – Canadian consumers and retailers on both sides of the border are driving the demand for outlet expansion into Canada  50/50 co ‐ ownership agreement to establish and operate an outlet platform in Canada  Properties branded as Tanger Outlet Centers  Potential for up to 10 outlet centers  Tanger is responsible for leasing & marketing  RioCan is responsible for development & management 7

CANADIAN GROWTH Opportunities for Growth – US style outlet shopping is under ‐ represented in Canada, and relative to the US, Canada is under ‐ retailed UNDER CONSTRUCTION OPERATING  Kanata, in suburban market of Ottawa, ON PROPERTIES:  Expansion of center in northern Toronto, in Cookstown, ON Cookstown, ON Bromont, QC Saint ‐ Sauveur, QC SHADOW PIPELINE  Other markets identified that are not served or underserved by the outlet industry 8

OPPORTUNISTIC ACQUISITIONS Acquisition opportunities are limited, but Tanger has sufficient access to capital to acquire quality assets opportunistically 2013  Tanger Outlets Deer Park Acquired an additional one ‐ third ownership interest on August 30, 2013, resulting in controlling interest in the property 9

Financial STEWARDSHIP Investment Grade Generate Capital Funding Preference Rated & Focused on Internally for Unsecured Moving Up the (Cash Flow in Excess Financing – Limited Ratings Scale of Dividends Paid) Secured Financing Maintain Maintain Disciplined Significant Unused Manageable Development Capacity Under Schedule of Debt Approach – Will Lines of Credit Maturities Not Build on Spec Limit Floating Rate Solid Coverage & Use Joint Ventures Opportunistically Exposure Leverage Ratios 10

QUALITY RATIOS Key Bond Covenants As of 06/30/2014 Actual Limit Total debt to adjusted total assets 49% < 60% Secured debt to adjusted total assets 9% < 40% Unencumbered assets to unsecured debt 179% > 150% Interest coverage 4.45 x > 1.5 x Agency Rating Latest Action S&P BBB+, stable outlook Rating upgraded on May 29, 2013 Moody’s Baa1, stable outlook Rating upgraded on May 23, 2013 11

strong BALANCE STRONG BALANCE SHEET SHEET Line of Credit Limited Use of Capacity Secured Financing 1 14% 18% 86% 82% Square feet encumbered Outstanding ($91.2 million) Square feet unencumbered Unused capacity ($428.8 million) 1. Consolidated outlet centers As of June 30, 2014 12

MANAGEABLE MATURITIES $300.0 $250.0 $250.0 $250.0 $150.0 $91.2 $29.6 $18.4 $18.3 $18.0 $10.6 $10.0 $7.5 '14 Aug '15 Nov '15 Jan '16 June '16 Aug '17 Aug '18 Oct '18 Feb '19 June '20 Nov '21 '22 Dec '23 Dec '24 '25 Dec '26 Lines of Credit Lines of Credit Commitment Mortgage Debt Term Loans Bond Debt 1. Assumes all extension options are exercised; although some mortgage debt is amortizing, outstanding balance is shown in the month of final maturity 2. Excludes debt discount/premium 3. Excludes pro ‐ rata share of debt maturities related to unconsolidated joint ventures As of June 30, 2014, in millions 13

CONSERVATIVE STRATEGIES Limited Floating Rate Exposure Reinvesting in the Company 2013 FFO Outstanding Debt $348.7 $100.4 52% 75% 25% 48% $91.6 $1,054.9 Variable Rate Excess Cash Flow Common Dividends Fixed Rate As of June 30, 2014, in millions In millions 14

DISCIPLINED DEVELOPMENT INTERNAL GUIDELINES FOR BUYING LAND:  Positive due diligence results  50% or greater pre ‐ leasing with acceptable tenant mix & visibility of reaching 75%  Receipt of all non ‐ appealable permits required to obtain building permit  Acceptable return on cost analysis PREDEVELOPMENT COSTS ARE LIMITED TO:  Costs to control the land (option contract costs)  Pre ‐ leasing costs  Due diligence costs  Capitalized overhead 15

RECESSION RESILIENCY In good times people love a bargain, “ and in tough times, people need a bargain. ” ~ Steven B. Tanger, CEO & President 16

STEADY SALES GROWTH Throughout 30+ years of economic cycles and the related peaks and valleys, tenant sales have trended positively 3% CAGR $354 $366 $376 $387 $384 $386 $339 $281 $226 1995 2000 2009 2010 2011 2012 2013 June June 2013 2014 Represents tenant comparable sales for consolidated outlet centers for the rolling 12 months 17

SUSTAINED OCCUPANCY Have Ended Each Year Since IPO With Occupancy of 95% or Greater 99% 99% 99% 99% 99% 99% 98% 98% 98% 98% 98% 98% 98% 98% 97% 97% 97% 97% 97% 96% 96% 96% 96% 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2Q13 2Q14 Represents period end occupancy for consolidated outlet centers 18

STABLE EXPIRATIONS Percentage of Total GLA (1) Percentage of Annual Base Rent (1) 3% 2014 4% 2014 11% 2015 12% 2015 13% 2016 14% 2016 14% 13% 2017 2017 17% 2018 16% 2018 9% 8% 2019 2019 6% 7% 2020 2020 7% 8% 2021 2021 6% 5% 2022 2022 6% 7% 2023 2023 6% 2024+ 8% 2024+ (1) As of June 30, 2014 consolidated outlet centers 19

GEOGRAPHIC DIVERSIFICATION Well ‐ positioned portfolio of 45 outlet centers in 26 states coast to coast and in Canada, totaling approximately 13.7 million square feet 20

STRONG TENANT MIX Diversified tenant base, the majority of which are publicly ‐ held, high credit quality retailers 63.3% 7.8% 4.5% 4.1% 3.4% 3.4% 2.9% 2.9% 2.7% 2.5% 2.5% Properties are easily reconfigured to minimize tenant turnover downtime Chart is in terms of square feet as of June 30, 2014 & includes all retail concepts of each tenant group; consolidated outlet centers 21