Tanger Reports Third Quarter 2007 Results

13.1% Increase in Total FFO, 12.3% Increase in FFO Per Share

6.2% Increase in Same Center Net Operating Income

GREENSBORO, N.C., Oct. 30 /PRNewswire-FirstCall/ -- Tanger Factory Outlet Centers, Inc. (NYSE: SKT) today reported funds from operations available to common shareholders ("FFO"), a widely accepted measure of REIT performance, for the three months ended September 30, 2007 increased 12.3% to $0.64 per share, or $23.9 million, as compared to FFO of $0.57 per share, or $21.2 million, for the three months ended September 30, 2006. For the nine months ended September 30, 2007, FFO increased 11.1% to $1.80 per share, or $67.4 million, as compared to FFO of $1.62 per share, or $59.8 million, for the nine months ended September 30, 2006.

For the three months ended September 30, 2007, net income available to common shareholders increased 16.4% to $7.0 million or $0.22 per share, as compared to $6.0 million, or $0.19 per share for the third 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 $24.5 million, or $0.79 per share for the nine months ended September 30, 2006, compared to $13.9 million, or $0.44 per share for the first nine months of 2007.

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 press release.

                           Third Quarter Highlights
    -- 6.2% increase in same center net operating income, 3.9% increase year
       to date
    -- 30.9% average increase in base rental rates on 169,555 square feet of
       re-leased space during the third quarter of 2007, 37.6% increase year
       to date
    -- 9.8% average increase in base rental rates on 107,010 square feet of
       signed renewals during the third quarter of 2007, 13.2% increase year
       to date
    -- 97.3% occupancy rate for wholly-owned properties, up 1.3% from
       September 30, 2006
    -- $340 per square foot in reported same-space tenant sales for the
       rolling twelve months ended September 30, 2007, up 1.0% compared to the
       twelve months ended September 30, 2006
    -- 30.5% debt-to-total market capitalization ratio, compared to 32.8% as
       of September 30, 2006
    -- 3.40 times interest coverage ratio compared to 3.25 times last year

Stanley K. Tanger, Chairman of the Board and Chief Executive Officer, commented, "Our third quarter results were very positive. Same center net operating income increased 6.2% for the quarter as a result of our continuing efforts to drive rental rates on the renewal and releasing of space as well as certain new high volume tenants exceeding their percentage rental breakpoints during the quarter."

Portfolio Operating Results

During the first nine months of 2007, Tanger executed 414 lease documents, totaling 1,725,596 square feet within its wholly-owned properties. Lease renewals accounted for 1,126,879 square feet, or 71.7% of the square feet which was scheduled to expire during 2007, and generated a 13.2% increase in average base rental rates on a straight-line basis. Base rental increases on re-tenanted space during the first nine months of 2007 averaged 37.6% on a straight-line basis and accounted for the remaining 598,717 square feet.

Same center net operating income increased 6.2% for the third quarter of 2007 and 3.9% for the first nine months of 2007 compared to the same periods in 2006. Reported tenant comparable sales per square foot increased 1.0% for the rolling three months as well as the rolling twelve months ended September 30, 2007 to $340 per square foot.

Investment and Other Activities

Tanger continues the development and leasing of two previously announced sites located in Washington County, south of Pittsburgh, Pennsylvania and in Deer Park (Long Island), New York. Construction at the Pittsburgh project is ongoing at this time. In response to strong tenant demand for space, Tanger has increased the size of the initial phase from 308,000 square feet to 370,000 square feet, with leases for approximately 61% of the first phase signed and an additional 20% out for signature. The company currently expects delivery of the initial phase in the second quarter of 2008, with stores opening in 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 44% of the space signed and an additional 20% out for signature. Tanger currently expects the project will be delivered in the second quarter of 2008, with stores opening in 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. During the third quarter of this year, Tanger put on hold its plans to develop a center in Burlington, New Jersey due to numerous development and site access issues.

As of September 30, 2007, Tanger reclassified its center in Boaz, Alabama as held for sale. Subsequently, in October 2007, the 79,575 square foot center was sold. The Boaz center represents less than 1.0% of the company's gross leasable area and less than 0.25% of its net operating income. Net proceeds from the sale, which approximated the net book value of the property, were $2.0 million and were used to reduce amounts outstanding on the company's unsecured lines of credit.

Financing Activities and Balance Sheet Summary

As of September 30, 2007, Tanger had $697.3 million of debt outstanding, equating to a 30.5% debt-to-total market capitalization ratio. The company had $23.3 million outstanding on its $200.0 million in available unsecured lines of credit with 96.7% of Tanger's debt bearing fixed interest rates. During the third quarter of 2007, Tanger continued to maintain a strong interest coverage ratio of 3.40 times, compared to 3.25 times during the third quarter of last year.

2007 FFO Per Share Guidance

Based on current market conditions and the strength and stability of its core portfolio, the company currently believes its net income for 2007, excluding gains or losses on the sale of real estate, will be between $0.69 and $0.73 per share and its FFO for 2007 will be between $2.44 and $2.48 per share. The company's earnings estimates do not include the impact of any potential gains on the sale of land parcels or 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 available to common shareholders per share:


    For the twelve months ended December 31, 2007:
                                                        Low Range   High Range
    Estimated diluted net income per share, excluding
     gain/loss on the sale of real estate                 $ 0.69      $ 0.73
    Minority interest, depreciation and amortization
     uniquely significant to real estate including
     minority interest share and our share of joint
     ventures                                               1.75        1.75

    Estimated diluted FFO per share                       $ 2.44      $ 2.48


Third Quarter Conference Call

Tanger will host a conference call to discuss its third quarter results for analysts, investors and other interested parties on Wednesday, October 31, 2007, 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 Third Quarter 2007 Financial Results call. Alternatively, the call will be web cast by CCBN and can be accessed at the company's web site at http://www.tangeroutlet.com/investorrelations/news.

A telephone replay of the call will be available from October 31, 2007 starting at 11:00 A.M. Eastern Time through November 9, 2007, by dialing 1-800-642-1687 (conference ID # 18545795). Additionally, an online archive of the broadcast will also be available through November 9, 2007.

About Tanger Factory Outlet Centers

Tanger Factory Outlet Centers, Inc.(NYSE: SKT), a fully integrated, self- administered and self-managed publicly traded REIT, presently owns 29 outlet centers in 21 states coast to coast, totaling approximately 8.3 million square feet of gross leasable area. Tanger also manages for a fee and owns a 50% interest in two outlet centers containing approximately 667,000 square feet and manages for a fee two outlet centers totaling approximately 229,000 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 June 30, 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 our re-merchandising strategy, the renewal and re-tenanting of space, tenant sales and sales trends, interest rates, funds from operations, the development of new centers, the opening of ongoing expansions, 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, the company's ability to lease its properties, 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, 2006.



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

                                       Three months ended   Nine months ended
                                          September 30,       September 30,
                                         2007      2006       2007     2006
    REVENUES
      Base rentals (a)                 $37,207   $35,260   $108,614 $101,816
      Percentage rentals                 2,305     1,736      5,434    4,292
      Expense reimbursements            16,719    14,866     47,496   41,271
      Other income (b)                   2,155     2,400      5,243    5,248
        Total revenues                  58,386    54,262    166,787  152,627

    EXPENSES
      Property operating                19,158    17,616     53,893   48,183
      General and administrative         4,916     4,147     14,096   12,304
      Depreciation and amortization     14,941    13,531     48,870   42,978
        Total expenses                  39,015    35,294    116,859  103,465
    Operating income                    19,371    18,968     49,928   49,162
      Interest expense (including
       prepayment premium and deferred
       loan cost write off of $917
       in 2006)                         10,087    10,932     30,215   30,856
    Income before equity in earnings
     of unconsolidated joint ventures,
     minority interest and discontinued
     operations                          9,284     8,036     19,713   18,306
    Equity in earnings of unconsolidated
     joint ventures                        461       539      1,030      971
    Minority interests in operating
     partnership                        (1,370)   (1,186)    (2,716)  (2,524)
    Income from continuing operations    8,375     7,389     18,027   16,753
    Discontinued operations, net of
     minority interest (c)                  22        25         76   11,797
    Net income                           8,397     7,414     18,103   28,550
    Preferred share dividends           (1,406)   (1,406)    (4,219)  (4,027)
    Net income available to common
     shareholders                       $6,991    $6,008    $13,884  $24,523


    Basic earnings per common share:
      Income from continuing operations   $.23      $.20       $.45     $.42
      Net income                          $.23      $.20       $.45     $.80

    Diluted earnings per common share:
      Income from continuing operations   $.22      $.19       $.44     $.41
      Net income                          $.22      $.19       $.44     $.79

    Funds from operations available
     to common shareholders (FFO)      $23,929   $21,155    $67,386  $59,800
    FFO per common share - diluted        $.64      $.57      $1.80    $1.62

    Summary of discontinued operations (c)
    Operating income from discontinued
     operations                            $26       $30        $91     $309
    Gain on sale of real estate            ---       ---        ---   13,833
    Income from discontinued operations     26        30         91   14,142
    Minority interest in discontinued
     operations                             (4)       (5)       (15)  (2,345)
    Discontinued operations, net of
     minority interest                     $22       $25        $76  $11,797


    (a) Includes straight-line rent and market rent adjustments of $1,033 and
        $962 for the three months ended and $3,192 and $2,831 for the nine
        months ended September 30, 2007 and 2006, respectively.
    (b) Includes gains on sale of outparcels of land of $177 for the three
        months ended September 30, 2006 and $402 for the nine months ended
        September 30, 2006.
    (c) In accordance with SFAS No. 144 "Accounting for the Impairment or
        Disposal of Long Lived Assets," the results of operations for
        properties disposed of or classified as held for sale during the above
        periods in which we have no significant continuing involvement have
        been reported above as discontinued operations for all periods
        presented.



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

                                                   September 30,  December 31,
                                                        2007          2006
    ASSETS:

    Rental property
      Land                                             $129,921     $130,137
      Buildings, improvements and fixtures            1,074,310    1,068,070
      Construction in progress                           61,364       18,640
                                                      1,265,595    1,216,847
      Accumulated depreciation                         (302,411)    (275,372)
      Rental property, net
                                                        963,184      941,475
    Cash and cash equivalents
                                                          2,434        8,453
    Assets held for sale                                  2,052          ---
    Investments in unconsolidated joint ventures         11,908       14,451
    Deferred charges, net                                47,306       55,089
    Other assets                                         26,563       21,409
        Total assets                                 $1,053,447   $1,040,877


    LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS' EQUITY:

    Liabilities
    Debt
      Senior, unsecured notes (net of discount of
       $778 and $832, respectively)                    $498,722     $498,668
      Mortgages payable (including a debt premium
       of $1,654 and $3,441, respectively)              175,312      179,911
      Unsecured lines of credit                          23,300          ---
      Total debt                                        697,334      678,579
    Construction trade payables                          27,943       23,504
    Accounts payable and accrued expenses                35,237       25,094
        Total liabilities                               760,514      727,177

    Commitments
    Minority interest in operating partnership           35,366       39,024


    Shareholders' equity
    Preferred shares, 7.5% Class C, liquidation
     preference $25 per share, 8,000,000 shares
     authorized, 3,000,000 shares issued and
     outstanding at September 30, 2007 and
     December 31, 2006                                   75,000       75,000
    Common shares, $.01 par value, 150,000,000 shares
     authorized, 31,317,401 and 31,041,336 shares
     issued and outstanding at September 30, 2007 and
     December 31, 2006, respectively                        313          310
    Paid in capital                                     350,701      346,361
    Distributions in excess of earnings                (169,419)    (150,223)
    Accumulated other comprehensive income                  972        3,228
        Total shareholders' equity                      257,567      274,676
          Total liabilities, minority interest
           and shareholders' equity                  $1,053,447   $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 Nine months ended
                                            September 30,     September 30,
                                            2007     2006      2007    2006
    FUNDS FROM OPERATIONS (a)
      Net income                           $8,397   $7,414  $18,103  $28,550
        Adjusted for:
        Minority interest in operating
         partnership                        1,370    1,186    2,716    2,524
        Minority interest, depreciation
         and amortization attributable
          to discontinued operations           52       52      160    2,604
        Depreciation and amortization
         uniquely significant to
         real estate - consolidated        14,865   13,465   48,641   42,780
        Depreciation and amortization
         uniquely significant to
         real estate - unconsolidated
         joint ventures                       651      444    1,985    1,202
        (Gain) loss on sale of real estate    ---      ---      ---  (13,833)
        Funds from operations (FFO)        25,335   22,561   71,605   63,827
        Preferred share dividends          (1,406)  (1,406)  (4,219)  (4,027)
        Funds from operations available
         to common shareholders           $23,929  $21,155  $67,386  $59,800
        Funds from operations available
         to common shareholders per share
         - diluted                           $.64     $.57    $1.80    $1.62


    WEIGHTED AVERAGE SHARES
      Basic weighted average common shares  30,847   30,619  30,805   30,582
      Effect of exchangeable notes            235       ---     235      ---
      Effect of outstanding share and unit
       options                                188      229      217      234
      Effect of unvested restricted share
       awards                                 130      135      144      107
      Diluted weighted average common
       shares (for earnings per share
       computations)                       31,400   30,983   31,401   30,923
      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)             37,467   37,050   37,468   36,990

    OTHER INFORMATION
    Gross leasable area open at end of period -
      Wholly owned                          8,363    8,389    8,363    8,389
      Partially owned - unconsolidated        667      667      667      667
      Managed                                 229      293      229      293

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

    States operated in at end of period (c)    21       21       21       21

    Occupancy at end of period (c) (d)       97.3%    96.0%    97.3%    96.0%


    (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 which are operated by us through 50% ownership
        joint ventures and two centers for which we only have management
        responsibilities.

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

SOURCE Tanger Factory Outlet Centers, Inc.