Management Presentation February 22, 2011 Disclaimer This - PowerPoint PPT Presentation

Tanger Outlets – Mebane, NC Management Presentation February 22, 2011

Disclaimer This presentation includes time-sensitive information that may be accurate only as of today’s date, February 22, 2011. Estimates of future net income per share and FFO per share are by definition, and certain other matters discussed in this presentation regarding the state of the industry, our growth prospects, our remerchandising and financial strategies, the renewal and re-tenanting of space, the development of new centers, redevelopment and acquisition of existing centers, tenant sales and sales trends, occupancy rates, interest rates, funds from operations and coverage of the current dividend 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 company’s ability to meet its obligations on existing indebtedness or refinance existing indebtedness on favorable terms, 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, 2009 and December 31, 2010, when available. 2

• Business Overview • 2010 Highlights • Summary Financial Results • Summary Operating Results • Development Update • Financial Strategies • History of Consistent Results & Investor Rewards • Summary 3

Business Overview 4

State of the Industry  Economies of scale benefit owners of large portfolios  Tanger and Simon combined own approximately 60% of the total outlet gross leasable area  Each year new brand name manufacturers are opening outlet stores and existing manufacturers are opening new outlet concepts  Outlet center occupancy levels have not been impacted to the same extent as other retail properties by bankruptcy and store closing announcements among retailers  During challenging retail environments, outlet stores continue to be a viable and profitable channel of distribution for retailers and manufacturers  Landlord revenues are protected by the relatively long-term nature of tenant leases Tanger – Riverhead, NY 5

Growth Prospects  Tanger continues to be successful in obtaining increases in rental rates on renewals and releasing of space  New development opportunities exist as there is increased tenant demand for outlet space  Acquisition opportunities still exist but are limited  Tanger has divested itself of many under-performing, smaller assets and reinvested the proceeds in new developments and expansions or to reduce debt Tanger – Deer Park, NY 6

Portfolio Diversification 61.6% 8.4% 6.4% 3.7% 3.6% 3.2% 3.1% 2.7% 2.6% 2.4% 2.3% Dress The Gap PVH Liz Other Nike VF Adidas Carters Polo Hanesbrands Barn Retailers Note: In terms of GLA as of December 31, 2010 Includes all retail concepts of each tenant group. Liz branded stores totaled 2.2% while other Liz concepts totaled 0.4% . 7

Geographic Diversification Well positioned portfolio of 33 outlet centers in 22 states coast-to-coast, totaling approximately 10.1 million square feet. DO NOT DELETE this nonprinting tracker. Without it your map cannot be edited. F:\Jobs\DTP-NY\60000\63900\63982\Artwork\63982-Tanger Outlets\63982-Tanger Outlets.wor Corporate HQ Wholly-owned Unconsolidated JV Current development F:\Jobs\DTP-NY\60000\63900\63982\Artwork\63982-Tanger Outlets\63982-Tanger Outlets.wor 8 Note: As of February 22, 2011

2010 Highlights 9

2010 Highlights  2.6% increase in same center net operating income  9.2% increase in average base rent on leases renewed  25.9% increase in average base rent on released space  98.4% occupancy rate for wholly-owned portfolio as of December 31, 2010  Tenant comparable sales increased 6.6% to $354 per square foot for the rolling 12 months ended December 31, 2010  Increase in common share cash dividend to $0.775 per share annualized from $0.765 per share, on a split-adjusted basis  Moody’s upgrade to Baa2 from Baa3 on May 20, 2010 10

2010 Capital Transactions  November 29, 2010 – Closed on $400 million in unsecured lines of credit that mature November 29, 2013 and include options that can extend maturity for an additional year  Replaced former lines of credit with total commitments of $325 million that were terminated simultaneously with closing of new facilities  Currently bear interest on outstanding balances at LIBOR + 190 plus facility fee of 40 bps on total commitment and include financial covenants that do not differ materially from those of our former facilities  $385 million syndicated line with a total of nine lenders led by Bank of America and Wells Fargo  $15 million cash management line with Bank of America as lender  December 9, 2010 – Completed the redemption of all 3 million outstanding 7.5% Class C Preferred shares for $25.198 per share including accrued dividends with the total cost of $75.6 million funded under our lines of credit  June 7, 2010 – Closed a $300 million 10 year bond offering (6.125% coupon, priced at 99.3% of par to yield 6.219%) with proceeds used to repay $235 million unsecured term loan, terminate underlying interest rate swaps, and pay down outstanding balances under unsecured lines of credit 11

Summary Financial Results 12

FFO (in millions) $122.78 $115.68 $97.38 19% 6% Increase Increase 2008 Adj. (1) 2009 Adj. (2) 2010 Adj. (3) 1) Excludes $8.9 million charge for settlement of T-locks and $406,000 debt prepayment premium. 2) Excludes $10.3 million charge for executive severance, $5.2 million impairment charge for Commerce I, $3.3 million gain on sale of Washington, PA outparcel, and a $10.5 million gain on early extinguishment of debt. 3) Excludes $6.7 million charge for write-off of unamortized loan costs and settlement of interest rate swaps associated with the prepayment of a $235 million term loan, $2.5 million reduction in net income related to the redemption of preferred shares and $1.2 million in other charges related to impairment, demolition, and gain or sale of outparcels we believe are not indicative of our ongoing operations. 13

FFO per share $1.37 $1.33 $1.32 74,858,000 84,157,000 92,523,000 Shares Shares Shares 2008 Adj. (1) 2009 Adj. (2) 2010 Adj. (3) 1) Excludes $0.12 /share charge for settlement of T-locks & debt prepayment premium. 2) Excludes $0.125/share charge for executive severance, $0.06/share impairment charge for Commerce I, $0.04/share gain on sale of Washington, PA outparcel, and a $0.124/share gain on early extinguishment of debt. 3) Excludes $0.07/share charge for write-off of unamortized loan costs and settlement of interest rate swaps associated with the prepayment of a $235 million term loan, $0.025/share reduction in net income related to the redemption of preferred shares and $0.01/share in other charges related to impairment, demolition, and gain or sale of outparcels we believe are not indicative of our ongoing operations. 14

Total Enterprise Value (in billions) 14% Annual Compound Increase $3.08 $2.50 $2.30 $2.20 $2.20 $1.78 $1.37 2004 2005 2006 2007 2008 2009 2010 15

Total Enterprise Value (as of December 31, 2010) $714,616,000 23% 77% $2,365,484,000 Common Equity Debt 16

Summary Operating Results 17

Growth in Same Center NOI 5.30% 4.10% 3.10% 2.60% 1.40% 2006 2007 2008 2009 2010 18

Rental Rate Increases on Renewals and Releasing (On a cash basis) Straight-line releasing spreads = 25.9% 2010, 30.9% in 2009, 44.1% in 2008 Straight-line renewal spreads = 9.2% 19.9% 2010, 9.7% in 2009, 17.5% in 2008 17.5% 10.3% 9.8% 7.9% 5.5% 6.3% 2004 2005 2006 2007 2008 2009 2010 19

Average Tenant Sales Per Square Foot (3% compound annual increase) $354 $339 $281 $226 1995 2000 2009 2010 20

Tenant Average Occupancy Cost 8.50% 8.30% 8.20% 7.70% 7.40% 2006 2007 2008 2009 2010 21

Development Update 22

Mebane, NC  319,000 sf development  $64.9 million investment  Grand opening November 5, 2010  Opened fully leased  Tenants include Saks Off Fifth, Coach, Polo, J Crew, GAP, Banana Republic, Nike, Tommy Hilfiger, & more 23

Hilton Head I, SC Redevelopment Former  Formerly 162,000 sf of GLA  Shopper unfriendly design 24

Hilton Head I, SC Redevelopment Redeveloped  176,000 sf GLA plus 4 outparcel pads when redeveloped  Shopper-friendly redevelopment will be 1 st LEED certified green shopping center in Beaufort County  $43 million incremental investment  Grand Re-Opening scheduled for March 31, 2011 25  Leases signed or out for signature for approximately 91.5% of GLA as of Feb. 22, 2011