Tanger Factory Outlet Centers (SKT, Financial) filed Quarterly Report for the period ended 2010-09-30.
Tanger Factory Outlet Centers has a market cap of $1.99 billion; its shares were traded at around $49.35 with and P/S ratio of 7.3. The dividend yield of Tanger Factory Outlet Centers stocks is 3.1%. Tanger Factory Outlet Centers had an annual average earning growth of 0.3% over the past 10 years.SKT is in the portfolios of Jim Simons of Renaissance Technologies LLC, Manning & Napier Advisors, Inc.
On January 5, 2009, we purchased the remaining 50% interest in the Myrtle Beach Hwy 17 joint venture for a cash price of $32.0 million which was net of the assumption of the existing mortgage loan of $35.8 million. The acquisition was funded by amounts available under our unsecured lines of credit. We had owned a 50% interest in the Myrtle Beach Hwy 17 joint venture since its formation in 2001 and accounted for it under the equity method. The joint venture is now 100% owned by us and consolidated. The acquisition was accounted for under the new guidance for acquisitions that was effective January 1, 2009. Under this guidance, we recorded a gain of $31.5 million which represented the difference between the fair market value of our previously owned interest and its cost basis.
During the second quarter of 2010, we terminated two interest rate swap agreements with a total notional amount of $235.0 million originally entered into in 2008 for the purpose of fixing the LIBOR based interest rate on the $235.0 million term loan facility originally completed in June 2008. We paid approximately $6.1 million to terminate the two interest rate swap agreements. The agreements were terminated because the underlying debt for the derivative transaction was repaid with a portion of the proceeds from the $300.0 million bond offering mentioned above.
Cash flow used in investing activities was higher in the 2010 period mainly due to a cash payment of $6.1 million to terminate two interest rate swap agreements associated with the underlying debt obligation which was repaid during the 2010 period. The 2010 period included approximately $55.6 million of additions to rental properties due primarily to our on-going construction at our Mebane, North Carolina and Hilton Head, South Carolina properties. The 2009 period included the acquisition of the remaining 50% interest in the joint venture that held the Myrtle Beach Hwy 17, South Carolina outlet center for $32.0 million in addition to payments for additions to rental properties at our operating portfolio.
In June 2010, we closed on the issuance of $300.0 million of senior unsecured notes. The ten year notes were issued by the Operating Partnership and were priced at 99.31% of par value to yield 6.219% to maturity. The net proceeds from the offering, after deducting the underwriting discount and offering expenses, were approximately $295.5 million. We used the net proceeds from the sale of the notes to (i) repay our $235.0 million unsecured term loan due in June 2011, (ii) pay approximately $6.1 million to terminate two interest rate swap agreements associated with the term loan and (iii) repay borrowings under our unsecured lines of credit and for general working capital purposes. 2009 Transactions
In May 2009 in a non-cash transaction, we retired $142.3 million of exchangeable notes through the issuance of 4.9 million common shares In August 2009, we raised approximately $116.8 million in cash through the issuance of 3.45 million common shares Dividends and distributions paid in the 2010 period were higher by $8.6 million compared to the 2009 period due to a higher number of outstanding common shares from the May 2009 exchange offering and August 2009 common share offering and an increase in the dividend rate paid on our common shares. In addition during the 2010 period we issued $300 million of senior, unsecured notes which included a cash outflow of $2.5 million for debt origination fees.
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Tanger Factory Outlet Centers has a market cap of $1.99 billion; its shares were traded at around $49.35 with and P/S ratio of 7.3. The dividend yield of Tanger Factory Outlet Centers stocks is 3.1%. Tanger Factory Outlet Centers had an annual average earning growth of 0.3% over the past 10 years.SKT is in the portfolios of Jim Simons of Renaissance Technologies LLC, Manning & Napier Advisors, Inc.
Highlight of Business Operations:
The 2010 period includes the write-off of approximately $563,000 of unamortized loan origination costs. These assets were written-off due to the repayment of the $235.0 million term loan facility in the 2010 period with a portion of the proceeds from the June 2010 $300.0 million unsecured bond offering. In May 2009, senior exchangeable notes of the Operating Partnership in the principal amount of $142.3 million and a carrying amount of $135.3 million were exchanged for Company common shares, representing approximately 95.2% of the total senior exchangeable notes outstanding prior to the exchange offer. In the aggregate, the exchange offer resulted in the issuance of approximately 4.9 million Company common shares and the payment of approximately $1.2 million in cash for accrued and unpaid interest and in lieu of fractional shares. Following settlement of the exchange offer, senior exchangeable notes in the principal amount of approximately $7.2 million remained outstanding. In connection with the exchange offering, we recognized in income from continuing operations and net income a gain on early extinguishment of debt in the amount of $10.5 million.On January 5, 2009, we purchased the remaining 50% interest in the Myrtle Beach Hwy 17 joint venture for a cash price of $32.0 million which was net of the assumption of the existing mortgage loan of $35.8 million. The acquisition was funded by amounts available under our unsecured lines of credit. We had owned a 50% interest in the Myrtle Beach Hwy 17 joint venture since its formation in 2001 and accounted for it under the equity method. The joint venture is now 100% owned by us and consolidated. The acquisition was accounted for under the new guidance for acquisitions that was effective January 1, 2009. Under this guidance, we recorded a gain of $31.5 million which represented the difference between the fair market value of our previously owned interest and its cost basis.
During the second quarter of 2010, we terminated two interest rate swap agreements with a total notional amount of $235.0 million originally entered into in 2008 for the purpose of fixing the LIBOR based interest rate on the $235.0 million term loan facility originally completed in June 2008. We paid approximately $6.1 million to terminate the two interest rate swap agreements. The agreements were terminated because the underlying debt for the derivative transaction was repaid with a portion of the proceeds from the $300.0 million bond offering mentioned above.
Cash flow used in investing activities was higher in the 2010 period mainly due to a cash payment of $6.1 million to terminate two interest rate swap agreements associated with the underlying debt obligation which was repaid during the 2010 period. The 2010 period included approximately $55.6 million of additions to rental properties due primarily to our on-going construction at our Mebane, North Carolina and Hilton Head, South Carolina properties. The 2009 period included the acquisition of the remaining 50% interest in the joint venture that held the Myrtle Beach Hwy 17, South Carolina outlet center for $32.0 million in addition to payments for additions to rental properties at our operating portfolio.
In June 2010, we closed on the issuance of $300.0 million of senior unsecured notes. The ten year notes were issued by the Operating Partnership and were priced at 99.31% of par value to yield 6.219% to maturity. The net proceeds from the offering, after deducting the underwriting discount and offering expenses, were approximately $295.5 million. We used the net proceeds from the sale of the notes to (i) repay our $235.0 million unsecured term loan due in June 2011, (ii) pay approximately $6.1 million to terminate two interest rate swap agreements associated with the term loan and (iii) repay borrowings under our unsecured lines of credit and for general working capital purposes. 2009 Transactions
In May 2009 in a non-cash transaction, we retired $142.3 million of exchangeable notes through the issuance of 4.9 million common shares In August 2009, we raised approximately $116.8 million in cash through the issuance of 3.45 million common shares Dividends and distributions paid in the 2010 period were higher by $8.6 million compared to the 2009 period due to a higher number of outstanding common shares from the May 2009 exchange offering and August 2009 common share offering and an increase in the dividend rate paid on our common shares. In addition during the 2010 period we issued $300 million of senior, unsecured notes which included a cash outflow of $2.5 million for debt origination fees.
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