Tanger Closes on the Sale of Five Non-Core Outlet Centers
GREENSBORO, N.C., Oct. 5, 2015 /PRNewswire/ -- Tanger Factory Outlet Centers, Inc. (NYSE: SKT) announced today that it has closed on the sale of five non-core outlet centers for a total cash sales price of $150.7 million. The five properties sold are located in Barstow, California; Kittery, Maine (2 properties); Tuscola, Illinois; and West Branch, Michigan.
| Location |
Closing Date |
Square |
Occupancy as of 09/30/15 |
Sales |
Sales Price |
Estimated |
% of Portfolio |
| Kittery I & II, ME |
09/30/15 |
439,365 |
89% |
$252 |
$44.0 |
10.4% |
1.9% |
| Barstow, CA |
10/05/15 |
171,300 |
100% |
$803 |
$106.7 |
5.8% |
2.5% |
| (1) Sales are based on reports by retailers leasing outlet center stores for the trailing 12 months ended August 30, 2015 for tenants which have occupied such stores for a minimum of 12 months. |
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| (2) % of Portfolio NOI is based on the company's forecast of 2015 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 and gains or losses on sale of outparcels. The Company's forecast is based on management's estimates as of June 30, 2015. |
|||||||
"We are pleased to announce the sale of five non-core assets. These centers have an average age of approximately 24 years, compared to our remaining portfolio average of 16 years. Because of the potential upcoming capital expenditures necessary to enhance these centers, as well as changes within each market, we no longer felt these assets could produce the growth in long-term internal cash flow and tenant sales that we are expecting within our core portfolio. While the Barstow center is performing at a very high level today, it was an outlier in our portfolio given its relatively small size and exceptionally high reliance on foreign tourism," said Steven B. Tanger, President and Chief Executive Officer.
Tanger continues to analyze the most efficient use of proceeds from a tax perspective. Some or all of the proceeds may be held with a qualified intermediary, and subsequently be invested in a tax efficient manner. Any proceeds not used in this manner may be used to pay down the company's unsecured line of credit or the payment of a special dividend should one be required.
About Tanger Factory Outlet Centers
Tanger Factory Outlet Centers, Inc. is a publicly-traded REIT headquartered in Greensboro, North Carolina that presently operates and owns, or has an ownership interest in, a portfolio of 42 upscale outlet shopping centers in 21 states coast to coast and in Canada, totaling approximately 14.1 million square feet leased to over 3,000 stores operated by more than 470 different brand name companies. For more information on Tanger Outlet Centers, call 1-800-4TANGER or visit the company's web site at www.tangeroutlets.com.
This news release contains forward-looking statements within the meaning of federal securities laws. These statements include, but are not limited to, the use of proceeds from the property sales, and the Company's ability to invest the proceeds in a tax efficient manner; expected growth in long-term internal cash flow and tenant sales in the core portfolio; potential future dividends; as well as other statements regarding 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. 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, 2014.
| Contact: |
Cyndi Holt |
| Vice President of Finance & Investor Relations |
|
| (336) 834-6892 |
|
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SOURCE Tanger Factory Outlet Centers, Inc.
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