Tanger Sells Fort Myers, Florida Outlet Center to Dahlmann Properties

12 Jan, 2016, 17:23 ET from Tanger Factory Outlet Centers, Inc.

GREENSBORO, N.C. and SANIBEL, Fla., Jan. 12, 2016 /PRNewswire/ -- Tanger Factory Outlet Centers, Inc. (NYSE: SKT) and Dahlmann Properties announced today the closing on the sale of Tanger's outlet center located in South Fort Myers, Florida near Sanibel Island to Dahlmann Properties for a total cash sales price of $26.0 million, the details of which are listed below: 

Closing Date

Year Built

Square
Feet

Occupancy
as of
12/31/15

Sales Per
Sq Ft (1)

Sales Price
(in millions)

Estimated
Capitalization
Rate

% of
Portfolio
NOI (2)

01/12/16

1993

198,877

91%

$282

$26.0

7.0%

1.0%


(1) Sales are based on reports by retailers leasing outlet center stores for the trailing 12 months ended November 30, 2015 for tenants which have occupied such stores for a minimum of 12 months.


(2) % of Portfolio NOI is based on the company's forecast of 2015 property level net operating income which is defined as total operating revenues less property operating expenses and excludes termination fees and non-cash adjustments including straight-line rent, net above and below market rent amortization and gains or losses on sale of outparcels. The Company's forecast is based on management's estimates as of September 30, 2015.

Tanger expects to record an approximate $5.0 million gain on the sale of the Fort Myers outlet center during the first quarter of 2016 and has elected not to defer any taxable gain on this transaction, as the transaction is currently not expected to have a significant impact on the company's 2016 taxable income.  Tanger intends to use the proceeds from the sale of this unencumbered asset to pay down balances outstanding under its unsecured lines of credit.

"We are pleased to announce the sale of the seventh non-core asset we have divested over the last year.  While the sale of the Fort Myers outlet center is expected to have an approximately $0.02 per share dilutive effect on net operating income in 2016, we believe that pruning the portfolio of assets that, while productive, may no longer meet our long term growth objectives, will improve Tanger's overall asset quality," said Steven B. Tanger, President and Chief Executive Officer. 

"The sale that was finalized today brings a fresh outlook and local ownership to the center, which will be renamed Sanibel Outlets," said Ben Dahlmann, Senior Vice President of Dahlmann Properties.

About Tanger Factory Outlet Centers

Tanger Factory Outlet Centers, Inc. is a publicly-traded REIT headquartered in Greensboro, North Carolina that presently operates and owns, or has an ownership interest in, a portfolio of 42 upscale outlet shopping centers in 21 states coast to coast and in Canada, totaling approximately 14.3 million square feet leased to over 3,000 stores operated by more than 490 different brand name companies. With over 35 years of experience in the outlet industry and 2 additional centers currently under construction, Tanger Outlet Centers continue to attract more than 185 million shoppers annually.  For more information on Tanger Outlet Centers, call 1-800-4TANGER or visit the company's web site at www.tangeroutlets.com.

About Dahlmann Properties

Dahlmann Properties, headquartered in Sanibel, Florida and Ann Arbor, Michigan, is one of Southwest Florida's leading retail and hospitality development companies.

This news release contains forward-looking statements within the meaning of federal securities laws. These statements include, but are not limited to, the future overall quality of the remaining assets in the core portfolio; the impact of the asset sale on net operating income; as well as other statements regarding plans, forecasts, estimates, intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts.

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 real estate conditions.  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, 2014, and December 31, 2015, when available.

Contact:

Tanger Factory Outlet Centers


Cyndi Holt


Vice President, Investor Relations


(336) 834-6892






Ben Dahlmann

Dahlmann Properties


Senior Vice President


(239) 454-1974

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SOURCE Tanger Factory Outlet Centers, Inc.



RELATED LINKS

http://www.tangeroutlet.com