Tanger Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Leases (Tables)

Leases (Tables)

9 Months Ended

Sep. 30, 2019

For the three and nine months ended September 30, 2019, the components of rental revenues are as follows (in thousands):



	Three months ended		Nine months ended
	September 30, 2019
Rental revenues - fixed	$	89,055	$	272,482
Rental revenues - variable ⁽¹⁾	25,995		74,907
Rental revenues	$	115,050	$	347,389

(1)

Primarily includes rents based on a percentage of tenant sales volume and reimbursable expenses such as common area expenses, utilities, insurance and real estate taxes.

Future minimum lease receipts under non-cancelable operating leases

Future minimum lease receipts under non-cancelable operating leases as of September 30, 2019, excluding the effect of straight-line rent and variable rentals, are as follows (in thousands):



For the remainder of 2019	$	80,828
2020	316,491
2021	281,120
2022	246,176
2023	212,194
2024	177,230
Thereafter	343,428
	$	1,657,467

Future minimum lease receipts under non-cancelable operating leases

Future minimum lease receipts under non-cancelable operating leases as of December 31, 2018, excluding the effect of straight-line rent and variable rentals, are as follows (in thousands):



2019	$	285,343
2020	265,361
2021	229,553
2022	195,808
2023	164,845
Thereafter	364,844
	$	1,505,754

Components of lease costs

For the three and nine months ended September 30, 2019, the components of lease costs are as follows (in thousands):



	Three months ended		Nine months ended
	September 30, 2019
Operating lease costs	$	1,372	$	4,148
Short-term lease costs	563		1,726
Variable lease costs ⁽¹⁾	50		180
Total lease costs	$	1,985	$	6,054

(1)

Our variable lease costs relate to our ground leases where increases in payments are based on center financial performance.

Lease term and discount rates

The lease term and discount rates are as follows:



	September 30, 2019
Weighted - average remaining lease term (years)	50
Weighted - average discount rate	5.0	%

Supplemental cash flow information

Supplemental Cash Flow Information

We purchase capital equipment and incur costs relating to construction of facilities, including tenant finishing allowances. Expenditures included in accounts payable and accrued expenses were as follows (in thousands):



	As of		As of
	September 30, 2019		September 30, 2018
Costs relating to construction included in accounts payable and accrued expenses	$	18,417	$	14,307

Interest paid, net of interest capitalized was as follows (in thousands):



	Nine months ended September 30,
	2019		2018
Interest paid	$	44,231	$	46,154

Information related to non-cash assets and liabilities recorded as a result of the adoption of Accounting Standards Codification Topic 842 “Leases” (“ASC 842”) as of September 30, 2019 was as follows (in thousands):



	September 30, 2019
Non-Cash operating lease right-of-use assets exchanged for operating lease liabilities	$	87,679
Non-Cash operating lease liabilities exchanged for operating right-of-use assets	$	92,354

The difference between the recorded operating lease liabilities and operating right-of-use assets represents the accrued straight-line rent liability of $5.0 million and our prepaid rent balances of $307,000 previously recognized under Accounting Standards Codification Topic 840 “Leases” (“ASC 840”) that were reclassified to the operating leases right-of use assets under ASC 842.

Cash flow information related to leases for the nine months ended September 30, 2019 (in thousands):



	September 30, 2019
Operating cash outflows related to operating leases	$	4,006

Maturity of lease liabilities

Maturities of lease liabilities as of September 30, 2019 for the next five years and thereafter are as follows (in thousands):



For the remainder of 2019	$	1,564
2020	5,568
2021	5,613
2022	5,669
2023	5,709
2024	5,765
Thereafter	226,837
Total lease payments	$	256,725
Less imputed interest	165,042
Present value of lease liabilities	$	91,683

Minimum lease payments

For operating leases as of December 31, 2018, minimum lease payments for the next five years and thereafter are as follows (in thousands):



2019	$	7,526
2020	7,311
2021	7,140
2022	7,127
2023	7,167
Thereafter	258,438
Total minimum payment	$	294,709