Tanger Reports Year End Results for 2007

12.6% Increase in Total FFO

5.3% Increase in Same Center NOI

GREENSBORO, N.C., Feb. 12 /PRNewswire-FirstCall/ -- Tanger Factory Outlet Centers, Inc. (NYSE: SKT) today reported strong financial results for the quarter and year ended December 31, 2007. Funds from operations available to common shareholders ("FFO"), a widely accepted supplemental measure of REIT performance, for the three months ended December 31, 2007, increased 12.3% to $26.3 million, or $0.70 per share, as compared to FFO of $23.4 million, or $0.63 per share, for the three months ended December 31, 2006. For the year ended December 31, 2007, FFO increased 12.6% to $93.7 million, or $2.48 per share, as compared to FFO of $83.2 million, or $2.24 per share, for the year ended December 31, 2006.

Net income available to common shareholders for the three months ended December 31, 2007 increased 23.3% to $9.1 million, or $0.28 per share, compared to $7.4 million, or $0.23 per share for the fourth quarter of 2006. During the first quarter of the previous year, Tanger recognized a net gain on the sale of real estate of $13.8 million. As a result, the company reported net income available to common shareholders of $31.9 million, or $1.03 per share for the year ended December 31, 2006, compared to $23.0 million, or $0.72 per share for the current year. Income from continuing operations for the year ended December 31, 2007 increased 11.8% to $28.5 million, or $0.72 per share, compared to $25.5 million, or $0.64 per share, for the year ended December 31, 2006.

Net income and FFO per share amounts above are on a diluted basis. FFO is a supplemental non-GAAP financial measure 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 is included in this release.

                          Highlights of Achievements

    --  8.6% increase in same center net operating income for the fourth
        quarter of 2007, 5.3% increase for the year
    --  39.7% average increase in base rental rates on 610,000 square feet of
        re-leased space during 2007, compared to a 22.9% average increase in
        the prior year
    --  13.9% increase in average base rental rates on 1.2 million square feet
        of signed renewals during 2007, compared to an 11.4% average increase
        in the prior year
    --  97.6% occupancy rate for wholly-owned stabilized properties, compared
        to 97.3% as of September 30, 2007 and 97.5% as of December 31, 2006
    --  $342 per square foot in reported tenant comparable sales for the
        rolling twelve months ended December 31, 2007, up 1.2% compared to the
        twelve months ended December 31, 2006
    --  Increase in unsecured line of credit capacity by 50% from $200 million
        to $300 million
    --  32.2% debt-to-total market capitalization ratio, 3.38 times interest
        coverage ratio for the year

Stanley K. Tanger, Chairman of the Board and Chief Executive Officer, commented, "Our annual FFO per share of $2.48 was at the high end of the most recent guidance. The core business continued to produce solid results as same center NOI for the year was up 5.3%. Our management team is energized and looking forward to what should be a successful 2008."

National Platform Continues to Drive Operating Results

Tanger's broad geographic representation and established brand name within the factory outlet industry continues to generate solid operating results. The company's portfolio of properties had a year-end occupancy rate of 97.6%, representing the 27th consecutive year since the company commenced operations in 1981 that it has achieved a year-end portfolio occupancy rate at or above 95%.

During 2007, Tanger executed 460 leases, totaling 1,856,000 square feet relating to its existing, wholly-owned properties. For the year, 1,246,000 square feet of renewals generated a 13.9% increase in average base rental rates, and represented 79.2% of the square feet originally scheduled to expire during 2007. Average base rental rates on re-tenanted space during the year increased 39.7% and accounted for the remaining 610,000 square feet.

Tanger continues to derive its rental income from a diverse group of national brand name manufacturers and retailers with no single tenant accounting for more than 7.9% of its gross leasable area and 5.4% of its total base and percentage rentals.

Same center net operating income increased 8.6% for the fourth quarter and 5.3% for the year ended December 31, 2007 compared to the same periods in 2006. This follows same center net operating income increases of 3.1% in 2006, 3.8% in 2005 and 1.2% in 2004.

Reported tenant comparable sales per square foot for the rolling three months ended December 31, 2007 increased 1.8%, while sales for the rolling twelve months ended December 31, 2007 increased 1.2% to $342 per square foot. Tanger's average tenant occupancy cost as a percentage of average sales was 7.7% for 2007 compared to 7.4% in 2006, 7.5% in 2005 and 7.3% in 2004.

Investment Activities Provide Future Earnings Growth

Tanger continues the development, construction and leasing of two previously announced sites located in Washington County, south of Pittsburgh, Pennsylvania and in Deer Park (Long Island), New York. In response to strong tenant demand for space, Tanger increased the size of the initial phase of the Pittsburgh center from 308,000 square feet to 370,000 square feet, with leases for approximately 63% of the first phase signed and an additional 20% under negotiation or out for signature. The company currently expects delivery of the initial phase in the second quarter of 2008, with stores opening by the end of the third quarter of 2008. The Pittsburgh center will be wholly owned by Tanger.

The company currently expects the Deer Park center will contain over 800,000 square feet upon final build-out. Site work and construction continues on an initial phase of approximately 682,000 square foot. The company has approximately 51% of the space signed and an additional 22% under negotiation or out for signature. Tanger currently expects the project will be delivered in the second quarter of 2008, with stores opening by the end of the third quarter of 2008. The Deer Park property is owned through a joint venture of which Tanger and two venture partners each own a one-third interest.

Tanger has signed an option on a potential new development site located in Mebane, North Carolina on the highly traveled Interstate 40/85 corridor. The company also has an additional site under control in Port St. Lucie, Florida at Exit 118 on Interstate I-95. Tenant interest in these two new locations appears to be strong and Tanger is continuing with its predevelopment work.

Successful Increase in Unsecured Credit Lines Provides Additional Liquidity

As of December 31, 2007, the company had $33.9 million in floating rate debt outstanding, representing 4.8% of its total debt. Tanger's total market capitalization as of December 31, 2007 was approximately $2.2 billion, with $706.3 million of debt outstanding, equating to a debt to total market capitalization of 32.2% as of December 31, 2007. During the year ended December 31, 2007, the company continued to maintain an interest coverage ratio of 3.38 times.

In January 2008, the company successfully increased it unsecured line of credit capacity by 50% from $200 million to $300 million and has obtained commitments for an additional $25 million, which Tanger expects to close during February 2008. The borrowing rate on the lines of credit remained the same, ranging from LIBOR plus 75 basis points to LIBOR plus 85 basis points.

On February 15, 2008, the company's $100 million, 9 1/8% unsecured senior notes mature. Tanger currently expects to refinance these notes in the short term with amounts available under its unsecured lines of credit. On July 10, 2008 the company's only remaining mortgage loan with a principal balance of $172.7 million and bearing interest at a rate of 6.59% will become payable at Tanger's option. At that time, the company can decide to repay the loan in full, or it can continue to make monthly payments on the loan at a revised interest rate of 8.59%. Tanger can then repay the loan in full on any monthly payment date without penalty. The final maturity date on the loan is July 10, 2028. Tanger is currently analyzing its various options with respect to refinancing this mortgage.

In 2008 Tanger Expects Additional Growth in FFO Per Share

Based on Tanger's internal budgeting process, the company's view on current market conditions, and the strength and stability of its core portfolio, Tanger currently believes its net income available to common shareholders for 2008 will be between $0.93 and $1.01 per share and its FFO available to common shareholders for 2008 will be between $2.60 and $2.68 per share. The company's earnings estimates do not include the impact of any potential sales or acquisitions of properties. The following table provides the reconciliation of estimated diluted FFO per share to estimated diluted net income per share:

                                                       Low Range    High Range
    Estimated diluted net income per common share        $0.93          $1.01
    Minority interest, gain/loss on the sale of
     real estate, depreciation and amortization
     uniquely significant to real estate including
     minority interest share and our share of
     joint ventures                                       1.67           1.67
    Estimated diluted FFO per share                      $2.60          $2.68

The mid point of the company's guidance range represents a 6.5% growth in FFO for 2008. Tanger projects same center net operating income growth of approximately 4%.

Year End Conference Call

Tanger will host a conference call to discuss its year end 2007 results for analysts, investors and other interested parties on Wednesday, February 13, 2008, 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 fourth quarter and year end 2007 financial results call. Alternatively, the call will be web cast by CCBN and can be accessed at Tanger Factory Outlet Centers, Inc.'s web site at http://www.tangeroutlet.com/investorrelations/news/ under the News Releases section. A telephone replay of the call will be available from February 13, 2008 starting at 11:00 A.M. Eastern Time through 11:59 P.M., February 29, 2008, by dialing 1-800-642-1687 (conference ID # 29901085). Additionally, an online archive of the broadcast will also be available through February 29, 2008.

About Tanger Factory Outlet Centers

Tanger Factory Outlet Centers, Inc. (NYSE: SKT) is a fully integrated, self-administered and self-managed publicly traded REIT. The company currently owns 29 centers in 21 states coast to coast, totaling approximately 8.4 million square feet of gross leasable area. Tanger also owns a 50% interest in two centers containing approximately 667,000 square feet. Tanger is filing a Form 8-K with the Securities and Exchange Commission that includes a supplemental information package for the quarter ended December 31, 2007. For more information on Tanger Outlet Centers, visit our web site at www.tangeroutlet.com.

Estimates of future net income per share and FFO per share are by definition, and certain other matters discussed in this press release regarding the renewal and re-tenanting of space, tenant sales and sales trends, interest rates, funds from operations, the development of new centers, coverage of the current dividend and the impact of sales of land parcels 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, the availability and cost of capital, our ability to lease our properties, our 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, 2006 (and December 31, 2007, when available).



             TANGER FACTORY OUTLET CENTERS, INC AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                    (in thousands, except per share data)
                                 (Unaudited)

                              Three months ended         Year ended
                                 December 31,            December 31,
                             2007         2006         2007        2006
    REVENUES
      Base rentals (a)     $38,210      $36,285     $146,824     $138,101
      Percentage rentals     3,323        2,890        8,757        7,182
      Expense
       reimbursements       18,482       17,126       65,978       58,397
      Other income (b)       1,963        2,034        7,206        7,282
        Total revenues      61,978       58,335      228,765      210,962

    EXPENSES
      Property operating    20,490       20,119       74,383       68,302
      General and
       administrative        4,911        4,402       19,007       16,706
      Depreciation and
       amortization         14,940       14,034       63,810       57,012
        Total expenses      40,341       38,555      157,200      142,020
    Operating income        21,637       19,780       71,565       68,942
      Interest expense (c)   9,851        9,919       40,066       40,775
    Income before equity in
     earnings of
     unconsolidated joint
     ventures, minority
     interest and
     discontinued
     operations             11,786        9,861       31,499       28,167
    Equity in earnings of
     unconsolidated joint
     ventures                  443          297        1,473        1,268
    Minority interest in
     operating partnership  (1,778)      (1,446)      (4,494)      (3,970)
    Income from continuing
     operations             10,451        8,712       28,478       25,465
    Discontinued operations,
     net of minority
     interest (d)               22           47           98       11,844
    Net income              10,473        8,759       28,576       37,309
    Less applicable
     preferred share
     dividends              (1,406)      (1,406)      (5,625)      (5,433)
    Net income available
     to common shareholders $9,067       $7,353      $22,951      $31,876

    Basic earnings per
     common share:
      Income from continuing
       operations             $.29         $.24         $.74         $.65
      Net income              $.29         $.24         $.74        $1.04

    Diluted earnings per
     common share:
      Income from continuing
       operations             $.29         $.23         $.72         $.64
      Net income              $.29         $.23         $.72        $1.03

    Summary of discontinued
     operations (d)
      Operating income from
       discontinued operations $21          $56         $112         $365
      Gain on sale of real
       estate                    6          ---            6       13,833
      Income from discontinued
       operations               27           56          118       14,198
      Minority interest in
       discontinued operations  (5)          (9)         (20)      (2,354)
    Discontinued operations,
     net of minority interest  $22          $47          $98      $11,844


    (a) Includes straight-line rent and market rent adjustments of $832 and
        $855 for the three months ended and $4,023 and $3,686 for the years
        ended December 31, 2007 and 2006, respectively.

    (b) Includes gains on sale of outparcels of land of $402 for the year
        ended December 31, 2006.

    (c) Includes prepayment premium and deferred loan cost write offs of $917
        for the year ended December 31, 2006.

    (d) In accordance with SFAS No. 144 "Accounting for the Impairment or
        Disposal of Long Lived Assets," the results of operations for
        properties disposed of during the year or classified as held for sale
        as of the end of the year in which we have no significant continuing
        involvement have been reported above as discontinued operations for
        the periods presented.



             TANGER FACTORY OUTLET CENTERS, INC. AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS
                      (in thousands, except share data)
                                 (Unaudited)

                                                  December 31,   December 31,
                                                      2007           2006
    ASSETS:
    Rental property
      Land                                          $130,075       $130,137
      Buildings, improvements and fixtures         1,104,459      1,068,070
      Construction in progress                        52,603         18,640
                                                   1,287,137      1,216,847
      Accumulated depreciation                      (312,638)      (275,372)
      Rental property, net                           974,499        941,475
    Cash and cash equivalents                          2,412          8,453
    Investments in unconsolidated
     joint ventures                                   10,695         14,451
    Deferred charges, net                             44,804         55,089
    Other assets                                      27,870         21,409
        Total assets                              $1,060,280     $1,040,877

    LIABILITIES, MINORITY INTEREST AND
     SHAREHOLDERS' EQUITY:
    Liabilities
    Debt
      Senior, unsecured notes (net of
       discount of $759 and $832,
       respectively)                                $498,741       $498,668
      Mortgages payable (including premium of
       $1,046 and $3,441,
       respectively)                                 173,724        179,911
      Unsecured lines of credit                       33,880            ---
      Total debt                                     706,345        678,579
    Construction trade payables                       23,813         23,504
    Accounts payable and accrued expenses             47,185         25,094
        Total liabilities                            777,343        727,177
    Commitments
    Minority interest in operating partnership        33,733         39,024
    Shareholders' equity
    Preferred shares, 7.5% Class C, liquidation
     preference $25 per share, 8,000,000 authorized,
     3,000,000 shares issued and outstanding at
     December 31, 2007 and 2006                       75,000         75,000
    Common shares, $.01 par value, 150,000,000
     authorized, at 31,329,241 and 31,041,336
     shares issued and outstanding December 31,
     2007 and 2006, respectively                         313            310
    Paid in capital                                  351,817        346,361
    Distributions in excess of earnings             (171,625)      (150,223)
    Accumulated other comprehensive income (loss)     (6,301)         3,228
      Total shareholders' equity                     249,204        274,676
      Total liabilities, minority interest
       and shareholders' equity                   $1,060,280     $1,040,877



             TANGER FACTORY OUTLET CENTERS, INC. AND SUBSIDIARIES
                           SUPPLEMENTAL INFORMATION
        (in thousands, except per share, state and center information)
                                 (Unaudited)

                               Three months ended          Year ended
                                  December 31,            December 31,
                               2007         2006        2007         2006

    FUNDS FROM
     OPERATIONS (a)
    Net income               $10,473       $8,759      $28,576      $37,309

    Adjusted for:
      Minority interest in
       operating partnership   1,778        1,446        4,494        3,970
      Minority interest,
       depreciation and
       amortization
       attributable to
       discontinued
       operations                  5           57          165        2,661
      Depreciation and
       amortization uniquely
       significant to real
       estate -
       consolidated           14,865       13,967       63,506       56,747
      Depreciation and
       amortization uniquely
       significant to real
       estate -
       unconsolidated
       joint ventures            626          623        2,611        1,825
      Gain on sale of real
       estate                     (6)         ---           (6)     (13,833)
    Funds from operations
     (FFO)                    27,741       24,852       99,346       88,679
    Preferred share
     dividends                (1,406)      (1,406)      (5,625)      (5,433)
    Funds from operations
     available to common
     shareholders            $26,335      $23,446      $93,721      $83,246
    Funds from operations
     available to common
     shareholders per share
     - diluted                  $.70         $.63        $2.48        $2.24

    WEIGHTED AVERAGE SHARES
    Basic weighted average
     common shares            30,867       30,651       30,821       30,599
    Effect of exchangeable
     notes                       478          310          478          117
    Effect of outstanding
     share and unit options      202          247          214          240
    Effect of unvested
     restricted share awards     178          172          155          125
    Diluted weighted average
     common shares (for
     earnings per share
     computations)            31,725       31,380       31,668       31,081
    Convertible operating
     partnership units (b)     6,067        6,067        6,067        6,067
    Diluted weighted average
     common shares (for funds
     from operations per share
     computations)            37,792       37,447       37,735       37,148

    OTHER INFORMATION
    Gross leasable area open
     at end of period -
      Wholly owned             8,398        8,388        8,398        8,388
      Partially owned -
       unconsolidated            667          667          667          667
      Managed                    ---          293          ---          293

    Outlet centers in operation -
      Wholly owned                29           30           29           30
      Partially owned -
       unconsolidated              2            2            2            2
      Managed                    ---            3          ---            3

    States operated in at
     end of period (c)            21           21           21           21
    Occupancy percentage at
     end of period (c) (d)      97.6%        97.5%        97.6%        97.5%



             TANGER FACTORY OUTLET CENTERS, INC. AND SUBSIDIARIES
                    FOOTNOTES TO SUPPLEMENTAL INFORMATION

    (a) FFO is a non-GAAP financial measure. The most directly comparable GAAP
        measure is net income (loss), to which it is reconciled. We believe
        that for a clear understanding of our operating results, FFO should be
        considered along with net income as presented elsewhere in this
        report. FFO is presented because it is a widely accepted financial
        indicator used by certain investors and analysts to analyze and
        compare one equity REIT with another on the basis of operating
        performance. FFO is generally defined as net income (loss), computed
        in accordance with generally accepted accounting principles, before
        extraordinary items and gains (losses) on sale or disposal of
        depreciable operating properties, plus depreciation and amortization
        uniquely significant to real estate and after adjustments for
        unconsolidated partnerships and joint ventures. We caution that the
        calculation of FFO may vary from entity to entity and as such the
        presentation of FFO by us may not be comparable to other similarly
        titled measures of other reporting companies. FFO does not represent
        net income or cash flow from operations as defined by accounting
        principles generally accepted in the United States of America and
        should not be considered an alternative to net income as an indication
        of operating performance or to cash flows from operations as a measure
        of liquidity. FFO is not necessarily indicative of cash flows
        available to fund dividends to shareholders and other cash needs.

    (b) The convertible operating partnership units (minority interest in
        operating partnership) are not dilutive on earnings per share computed
        in accordance with generally accepted accounting principles.

    (c) Excludes Myrtle Beach, South Carolina Hwy 17 and Wisconsin Dells,
        Wisconsin properties for the 2007 and 2006 periods which are operated
        by us through 50% ownership joint ventures and excludes two centers
        for the 2006 periods for which we only had management
        responsibilities.

    (d) Excludes our wholly-owned, non-stabilized center in Charleston, South
        Carolina for the 2006 periods.

SOURCE Tanger Factory Outlet Centers, Inc.