GREENSBORO, N.C., July 15, 2015 /PRNewswire/ -- Tanger Factory Outlet Centers, Inc. (NYSE: SKT) provided an update today on the status of a potential transaction to sell four outlet centers that were classified as held for sale. The buyer's due diligence period for inspecting the properties expired on June 15, 2015, at which time the non-refundable portion of the buyer's deposit retainable by Tanger increased to $150,000. However, the purchase and sale agreements also provided the buyer an additional contingency period solely for the purpose of obtaining acceptable mortgage financing. Immediately prior to the expiration of this financing contingency period, the buyer informed Tanger that, due to current market conditions, it could not secure acceptable financing on the terms, and in the amounts it had originally anticipated at the start of the due diligence process.
As of June 30, 2015, the average occupancy rate of these four centers was 93% and collectively accounted for less than 5% of the company's consolidated net operating income.
"These centers are currently cash flow positive, highly occupied and free of mortgage encumbrances," said Steven B. Tanger, President and Chief Executive Officer. "We are under no pressure to sell these income-producing assets and therefore plan to continue to operate these centers, which will no longer be actively marketed for sale. Due to our continued efforts to renew and release space at these locations, we will not be disclosing which properties were subject to the purchase and sale agreements," he added.
Management's current 2015 guidance contemplates closing on the sale of only three of the four subject properties during the first quarter of 2015. Tanger will update its earnings guidance in conjunction with the company's second quarter 2015 earnings release on August 4, 2015.
About Tanger Factory Outlet Centers
Tanger Factory Outlet Centers, Inc. is a publicly-traded REIT that presently operates and owns, or has an ownership interest in, a portfolio of 46 upscale outlet shopping centers in 24 states coast to coast and in Canada, totaling approximately 14.4 million square feet leased to over 3,000 stores operated by more than 460 different brand name companies. With more than 30 years of experience in the outlet industry and 3 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.
This news release contains forward-looking statements within the meaning of federal securities laws. These statements include, but are not limited to, our intention to operate certain properties rather than market them for sale, the expected cash flow of the properties previously considered as held for sale, as well as other statements regarding plans, 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.
Contact: Cyndi Holt
Vice President of Finance & Investor Relations
SOURCE Tanger Factory Outlet Centers, Inc.