MANAGEMENT PRESENTATION FEBRUARY 12, 2013 DISCLAIMER 2 - - PowerPoint PPT Presentation

MANAGEMENT PRESENTATION • FEBRUARY 12, 2013

2

DISCLAIMER

This presentation includes time-sensitive information that may be accurate only as of today’s date, February 12, 2013. Estimates of future net income per share and funds from operations per share are, 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,

• ur ability to acquire assets opportunistically, synergies expected to be achieved in acquiring centers

in close proximity to existing Tanger centers, interest rates, 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, working with joint venture partners, and competition. For a more detailed discussion of the factors that affect

• ur operating results, interested parties should review the Tanger Factory Outlet Centers, Inc. Annual

Report on Form 10-K for the fiscal years ended December 31, 2011, and December 31, 2012, when available.

3

why TANGER?

• Well-positioned for growth
• Financial stewardship
• Recession resiliency
• Outlet expertise & focus
• Proven record of value creation

4

four-legged GROWTH

Existing Portfolio Canadian Growth Opportunities US Development Opportunities Opportunistic Acquisitions

5

2007 2008 2009 2010 2011 2012 5.3% 4.1% 1.4% 2.6% 5.3% 6.0%

Same Center NOI Growth

2006 2007 2008 2009 2010 2011 2012 14.2% 22.6% 25.9% 14.3% 13.8% 23.4% 25.5%

Straight-line Blended Rental Increases

• rganic GROWTH

Tenant occupancy cost ratio has increased 100 basis points to 8.4% for 2012 from 7.4% for 2006 (see page 31 of appendix)

6

domestic RUNWAY

The outlet industry is small – we estimate about 50 million square feet, which is smaller than the retail space in the city of Chicago

Recently Completed:

• Tanger Outlets Westgate in Glendale, Arizona – opened

November 15, 2012

• Tanger Outlets Texas City, near Houston/Galveston –
• pened October 19, 2012

Under Construction:

• National Harbor, in Washington DC market

Pre-development:

• Charlotte, NC
• Columbus, OH
• Foxwoods Resort in Mashantucket, CT
• Scottsdale, AZ

Shadow Pipeline:

• Site selection continues in other identified markets that are

not served or underserved by the outlet industry

Attractive Supply Dynamic – Tenant demand for outlet space continues and new supply is limited, with only a few disciplined public REIT developers that have access to capital and the expertise to deliver new outlet projects

7

canadian PLATFORM

The Next Frontier: US style outlet shopping is unrepresented in Canada. Relative to the US (24.5 retail sf/person), Canada is under-retailed (16 retail sf/person). Canadian consumers and retailers on both sides of the border are driving the demand for outlet expansion into Canada. Current Portfolio/ Pipeline:

• Three operating outlet centers, all with potential for expansion
• Development pipeline – Two new sites and two expansions announced and in predevelopment

phase

• Shadow pipeline – Other markets identified beyond the named pipeline sites
• 50/50 co-ownership agreement to establish an outlet platform in Canada
• Properties will be branded as Tanger Outlet Centers
• Potential openings of 10 outlet centers over the next 5 – 7 years
• Tanger is responsible for leasing & marketing
• RioCan is responsible for development & management

8

• pportunistic ACQUISTIONS

The outlet industry is largely consolidated. Tanger estimates that Tanger & Simon collectively own more than 75 – 80% of all quality outlet assets, and benefit from the scale of their portfolios. Acquisition opportunities are limited, but Tanger has sufficient access to capital to acquire quality assets opportunistically. 2012 Acquisitions:

• Les Factoreries St. Sauveur
• Bromont Outlet Mall

9

financial STEWARDSHIP

Investment Grade Rated & Focused on Moving Up the Ratings Scale Maintain Significant Unused Capacity Under Lines of Credit Funding Preference for Unsecured Financing – Limited Secured Financing Solid Coverage & Leverage Ratios Maintain Manageable Schedule of Debt Maturities Use Joint Ventures Only When Necessary Limit Floating Rate Exposure Generate Capital Internally (Cash Flow in Excess

• f Dividends Paid)

Disciplined Development Approach – Will Not Build on Spec

10

quality Ratios

Key Bond Covenants As of 12/31/2012 Actual Limit Total debt to adjusted total assets 47% < 60% Secured debt to adjusted total assets 5% < 40% Unencumbered assets to unsecured debt 197% > 135% Interest coverage 4.5 x > 1.5 x

S&P – BBB Moody’s – Baa2 Most recent ratings agency action: Moody’s revision of outlook to positive from stable on June 8, 2012

11

strong BALANCE SHEET

34% 66%

Line of Credit Capacity

Outstanding ($178.3 million) Unused Capacity ($341.7 million) 8% 92%

Limited Use of Secured Financing 1

GLA encumbered GLA unencumbered

As of December 31, 2012 1. Consolidated properties

12

manageable MATURITIES

$178.3 $30.7 $18.5 $21.0 $10.6 $20.6 $250.0 $250.0 $300.0 $10.0

'12 '13 '14 Aug '15 Nov '15 Jan '16 June '16 Nov '16 '17-'18 Feb '19 June '20 Nov '21 '22-'23 Dec '24 '25 Dec '26

Lines of Credit Lines of Credit Commitment Mortgage Debt Term Loan (3) Bond Debt Other Unsecured Debt

1. In millions as of December 31, 2012 & assuming all extension options 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

13

Reinvesting in the Company

39% 61%

Outstanding Debt

Variable Rate Fixed Rate

$428.3 millio n

$79.1 $81.8

2012 FFO

Excess Cash Flow Common Dividends

Limited Floating Rate Exposure

In millions $661.4 million As of December 31, 2012

conservative STRATEGIES

14

disciplined DEVELOPMENT

Internal Guidelines for Buying Land:

• Positive due diligence results
• 50% or greater preleasing 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

15

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

16

sustained OCCUPANCY

Represents period end occupancy

98% 99% 99% 99% 98% 97% 97% 96% 96% 98% 96% 97% 97% 98% 98% 97% 96% 98% 99% 99% 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Have Ended Each Year Since IPO With Occupancy of 95% or Greater

17

steady SALES GROWTH

For over 30+ years of economic cycles and the related peaks and valleys, tenant sales have trended positively

1995 2000 2009 2010 2011 2012

$226 $281 $339 $354 $366 $376

3% CAGR

Represents tenant comparable sales for rolling 12 months

18

stable EXPIRATIONS

2023+ 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2% 6% 8% 5% 3% 11% 14% 14% 13% 13% 11%

Percentage of Annual Base Rent

2023+ 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2% 5% 8% 6% 3% 10% 14% 14% 13% 14% 11%

Percentage of Total GLA

2012 expirations shown net of renewals executed through December 31, 2012

19

geographic DIVERSIFICATION

Well-positioned portfolio of 43 outlet centers in 26 states coast to coast & in Canada, totaling approximately 12.9 million square feet

20

strong TENANT MIX

Diversified tenant base, the majority of which are publicly-held, high credit quality retailers Properties are easily reconfigured to minimize tenant turnover downtime

Chart is in terms of GLA as of December 31, 2012 & includes all retail concepts of each tenant group 7.9% 6.3% 4.9% 3.5% 3.4% 3.0% 2.9% 2.7% 2.6% 2.3% 60.5%

21

• utlet EXPERTISE

In this competitive environment, retailers want to work with a trusted partner that they know can:

• Secure the best sites
• Secure financing, if needed
• Construct a quality property on time
• Complete lease-up timely and

effectively

• Market and operate the center for

years to come THE OUTLET SKILL SET

• Site selection – typically, sites are
• utside of major metropolitan areas
• Leasing – smaller spaces and no/few

anchors means many more leases per property

• Marketing – landlord must establish

programs to drive traffic to outlet centers from metropolitan areas and to cultivate loyalty for its own brand 30+ years outlet industry experience and strong tenant relationships Tanger executives average approximately 14 years of service to the Company, and even more in the industry

22

• nly PURE PLAY

Targeted focus – single property type

• Tanger has established a reputation as an
• utlet industry leader
• As the only public pure play outlet center REIT,

SKT equity provides portfolio diversification to investors

23

proven RECORD

50 100 150 200 2007 2008 2009 2010 2011 2012

Total Return to Shareholders

Tanger NAREIT All Equity REIT Index SNL REIT Retail Shopping Ctr Index Ranked #2 among mall REITs for both 5 year total return (117%) and10 year total return (584%)

~ Keybanc Leaderboard Report, 12/31/2012

24

dividend GROWTH

Tanger has increased its dividend each year and has paid a cash dividend every quarter since its IPO Dividend increased 5% in 2012 to $0.84 per share annually from $0.80

Split-adjusted $0.2388 $0.4600 $0.5000 $0.5200 $0.5500 $0.6000 $0.6052 $0.6076 $0.6100 $0.6128 $0.6158 $0.6252 $0.6452 $0.6800 $0.7200 $0.7600 $0.7652 $0.7752 $0.8000 $0.8400 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

25

growing ENTERPRISE

14% CAGR 2005 2006 2007 2008 2009 2010 2011 2012 $1.8 $2.2 $2.2 $2.3 $2.5 $3.1 $3.9 $4.5

Total market capitalization in billions

26

13%

Increase

1. Excludes $2.7 million in charges related to acquisition costs and $0.2 million of abandoned development costs that we believe are not indicative of our ongoing operations (collectively $0.03 per share) 2. Excludes $1.4 million in acquisition and abandoned development costs and gain on early extinguishment of debt from unconsolidated joint ventures, and $0.1 million in other acquisition costs. 3. Per share amount represents midpoint of guidance. Dollar amount represents per share amount multiplied by the weighted average budgeted common shares outstanding for 2013.

ffo GROWTH

2011 Adj. (1) 2012 Adj. (2) 2013E Adj. (3)

$141.3 $162.4 $176.9

Million $$

15% increase 9% increase

2011 Adj. (1) 2012 Adj. (2) 2013E Adj. (3)

$1.47 $1.65 $1.79

$$ Per Share

98,605,000 shares 99,110,000 shares 96,021,000 shares

27

investment HIGHLIGHTS

• Well-positioned for growth
• Financial stewardship
• Recession resiliency
• Outlet expertise & focus
• Proven record of value creation

28

Financial

APPENDIX

29

earnings GUIDANCE

Low Range High Range Estimated diluted net income per common share $0.76 $0.81 Non-controlling interest, gain/loss on the sale of real estate, depreciation and amortization uniquely significant to real estate including non-controlling interest share, and our share

• f joint ventures

1.00 1.00 Estimated diluted FFO per share $1.76 $1.81

Guidance last revised in connection with February 12, 2013 earnings release

30

2012 FINANCINGS

• On February 24, closed on a seven-year $250 million unsecured term loan,

using proceeds to repay borrowings under unsecured lines of credit

• Priced at L + 180 bps
• February 2019 maturity
• Pre-payable without penalty beginning February 2015

31

2006 2007 2008 2009 2010 2011 2012

7.4% 7.7% 8.2% 8.5% 8.3% 8.4% 8.4%

tenant OCCUPANCY COST

32

New Developments & Projects Under Development

APPENDIX

33

HOUSTON, TX

• 50/50 joint venture to develop a Tanger Outlet Center
• 353,000 sf development
• Approximate total investment of $66.5 million
• 30 miles south of Houston and 20 miles north of Galveston in Texas

City, TX on Interstate 45

• Grand opening was for

October 19, 2012

34

WESTGATE/GLENDALE, AZ

• 58/42 joint venture to develop a Tanger Outlet Center
• 332,000 sf development
• Approximate total investment of $79.1 million
• Just off I-10 at the loop 101, adjacent to Westgate City Center,

Jobing.com arena, University of Phoenix Stadium and Renaissance Hotel & Convention Center

• Grand opening was

November 15, 2012

35

• 50/50 joint venture with

The Peterson Companies

• 340,000 sf
• Approximate total investment
• f $94 - $96 million
• Located in Washington, D.C.

metro area

• November 2013 expected
• pening
• Tenants will include Gap,

Calvin Klein, Banana Republic, H&M, Tommy Hilfiger, and many more

35

NATIONAL HARBOR

36

canadian PLATFORM

Pre-development Sites:

• Kanata – a suburban market of Ottawa
• Mississauga – western Toronto market

Expansion Sites

• Cookstown – Property located in Innisfil approximately 30 miles north of Toronto

with 156,000 sf and may be expanded to approximately 320,000 sf

• St. Sauveur – Acquisition completed in November 2012 of Les Factoreries St.

Sauveur, located 35 miles northwest of Montreal, adjacent to Highway 15, with 116,000 sf and may be expanded to approximately 136,000 sf

37

what OVERBUILDING?

• Strong performance relative to other retail property types has resulted in outlet project

development announcements by new entrants to the outlet space

• Excluding Tanger and Simon, few projects that are announced ever open for business (1)
• One year ago: 36 announced, 3 completed
• Five years ago: 23 announced, 4 completed
• Ten years ago: 8 announced, 1 completed
• Value Retail News (August 2011 issue) supports thesis of disciplined development in the
• utlet industry
• Single digit grand openings per year since 1997
• All outlet centers opened since 2001 are still open and operating as outlet centers
• Tenants want a developer that can deliver, and Tanger has a proven, 30 plus year track

record of delivering quality outlet centers

(1) Announcements per Value Retail News (1 year source = December 2011, 5 year = August 2008, 10 year = October 2002)

38

Acquisitions

APPENDIX

39

2012 ACQUISITIONS

• With RioCan under a 50/50 co-ownership agreement, acquired two existing
• utlet centers in the Montreal, Quebec market (Les Factoreries St. Sauveur and

Bromont Outlet Mall) in November 2012

• Aggregate purchase price of approximately $94.8 million, including the

assumption of debt of $18.8 million on St. Sauveur center

Acquisitions expanded Canadian footprint by 268,000 square feet

40

SAINT SAUVEUR, QC

• 50/50 JV with RioCan
• 116,000 sf
• 20,000 sf of expansion

potential

• Acquired in November 2012
• Located 35 miles northwest
• f Montreal
• Tenants include Nike, Tommy

Hilfiger, Reebok, Guess, Jones New York and more

41

• Acquired in November 2012
• Tenants include Point Zero, Tommy

Hilfiger, Guess, Puma and more

BROMONT, QC

• 50/50 JV with RioCan
• 163,000 sf
• Located 50 miles east of Montreal

Tanger Factory Outlet Centers, Inc., (NYSE: SKT) is a publicly traded REIT headquartered in Greensboro, North Carolina that operates and owns or has

• wnership interests in, a portfolio of 43 upscale outlet centers in 26 states coast to coast and in Canada, totaling approximately 12.9 million square feet,

leased to over 2,700 stores that are operated by more than 460 different brand name companies. More than 175 million shoppers visit Tanger Outlet Centers annually. For more information on Tanger Outlet Centers, call 1-800-4-TANGER or visit the company’s website at www.tangeroutlet.com.