Tanger Inc. Annual report pursuant to Section 13 and 15(d)

Investments in Unconsolidated Real Estate Joint Ventures (Tables)

Investments in Unconsolidated Real Estate Joint Ventures (Tables)

12 Months Ended

Dec. 31, 2014

Equity Method Investments and Joint Ventures [Abstract]

At December 31, 2014 and 2013, we were members of the following unconsolidated real estate joint ventures:



As of December 31, 2014
Joint Venture	Outlet Center Location	Ownership %		Square Feet (in 000's)	Carrying Value of Investment (in millions)			Total Joint Venture Debt (in millions)
Galveston/Houston	Texas City, TX	50.0	%	353	$	1.3		$	65.0
National Harbor	National Harbor, MD	50.0	%	339	9.5			83.7
RioCan Canada	Various	50.0	%	870	132.5			15.7
Savannah ⁽¹⁾	Savannah, GA	50.0	%	—	46.5			25.5
Westgate	Glendale, AZ	58.0	%	381	14.3			54.0
Wisconsin Dells	Wisconsin Dells, WI	50.0	%	265	2.4			24.3
Other				—	1.5			—
					$	208.0		$	268.2

Charlotte⁽²⁾	Charlotte, NC	50.0	%	398	$	(2.2	)	$	90.0
					$	(2.2	)	$	90.0

(1)

Based on capital contribution and distribution provisions in the joint venture agreement, we expect our economic interest in the venture's cash flow to be greater than the ownership percentage indicated above, which in this case, states our legal interest in this venture. Our economic interest may fluctuate based on a number of factors, including mortgage financing, partnership capital contributions and distributions, and proceeds from gains or losses of asset sales.


(2)	The negative carrying value is due to the distributions of proceeds from a mortgage loan, as well as quarterly distributions of excess cash flow, exceeding the original contributions from the partners.



As of December 31, 2013
Joint Venture	Outlet Center Location	Ownership %		Square Feet (in 000's)	Carrying Value of Investment (in millions)		Total Joint Venture Debt (in millions)
Charlotte	Charlotte, NC	50.0	%	—	$	11.6	$	—
Galveston/Houston	Texas City, TX	50.0	%	353	7.4		65.0
National Harbor	National Harbor, MD	50.0	%	336	16.7		52.4
RioCan Canada	Various	50.0	%	433	85.7		17.9
Westgate	Glendale, AZ	58.0	%	332	16.1		43.1
Wisconsin Dells	Wisconsin Dells, WI	50.0	%	265	2.5		24.3
Other				—	0.2		—
					$	140.2	$	202.7

Schedule of Development, Loan Guarantee, Management, Leasing, and Marketing Fees Paid By Unconsolidated JVs

Fees we received for various services provided to our unconsolidated joint ventures were recognized in management, leasing and other services as follows (in thousands):



	Year Ended December 31,
	2014		2013		2012
Fees:
Development and leasing	$	725	$	595	$	193
Loan guarantee	463		161		80
Management	1,897		1,831		1,301
Marketing	506		493		433
Total Fees	$	3,591	$	3,080	$	2,007

Summary Financial Information of Unconsolidated JVs Balance Sheet

Condensed combined summary financial information of joint ventures accounted for using the equity method as of December 31, 2014 and 2013 is as follows (in thousands):



Condensed Combined Balance Sheets - Unconsolidated Joint Ventures	2014			2013
Assets
Land	$	102,601		$	66,020
Buildings, improvements and fixtures	542,501			327,972
Construction in progress, including land	104,780			86,880
	749,882			480,872
Accumulated depreciation	(48,233		)	(29,523		)
Total rental property, net	701,649			451,349
Cash and cash equivalents	46,917			22,704
Deferred lease costs, net	21,234			19,281
Deferred debt origination costs, net	5,995			1,737
Prepaids and other assets	12,766			9,107
Total assets	$	788,561		$	504,178
Liabilities and Owners' Equity
Mortgages payable	$	358,219		$	222,058
Accounts payable and other liabilities	70,795			8,540
Total liabilities	429,014			230,598
Owners' equity	359,547			273,580
Total liabilities and owners' equity	$	788,561		$	504,178

Summary Financial Information Of Unconsolidated JVs Statements of Operations



Condensed Combined Statements of Operations- Unconsolidated Joint Ventures:	Year Ended December 31,
	2014			2013			2012
Revenues ⁽¹⁾	$	78,625		$	85,682		$	54,936
Expenses:
Property operating	30,986			31,610			24,678
General and administrative	621			977			970
Acquisition costs	—			477			1,437
Abandoned development costs	472			153			1,447
Impairment charge	—			—			420
Depreciation and amortization	23,426			26,912			19,914
Total expenses	55,505			60,129			48,866
Operating income	23,120			25,553			6,070
Gain on early extinguishment of debt ⁽²⁾	—			13,820			—
Interest expense	(5,459		)	(11,602		)	(14,760		)
Net income (loss)	$	17,661		$	27,771		$	(8,690	)
The Company and Operating Partnership's share of:
Net income (loss)	$	9,053		$	11,040		$	(3,295	)
Depreciation and asset impairments (real estate related) ⁽²⁾	12,212			12,419			8,245


(1)	Note that revenues for the year ended December 31, 2013 include approximately $9.5 million of other income from the settlement of a lawsuit at Deer Park prior to our acquisition of an additional one-third interest in and the consolidation of the property.


(2)	Represents a gain on early extinguishment of debt that was recorded as part of the refinancing of the debt at Deer Park in August 2013 (See Note 3).