Tanger Factory Outlet Centers, Inc. today reported funds from operations

Tanger Factory Outlet Centers, Inc. today reported funds from operations available to common shareholders ("FFO"), a widely accepted measure of REIT performance, for the three months ended September 30, 2008 increased 9.4% to $0.70 per share, or $26.5 million, as compared to FFO of $0.64 per share, or $23.9 million, for the three months ended September 30, 2007. For the nine months ended September 30, 2008, FFO was $64.4 million, or $1.70 per share, as compared to FFO of $67.4 million, or $1.80 per share, for the nine months ended September 30, 2007.

FFO for the nine months ended September 30, 2008 was impacted by a previously announced $8.9 million charge relating to the settlement of $200.0 million in 10 year US Treasury locks, as well as a $406,000 prepayment premium associated with the early extinguishment of debt. Excluding these two non-recurring charges, FFO for the nine months ended September 30, 2008 would have been $1.94 per share, representing an increase of 7.8% compared to the nine months ended September 30, 2007.

For the three months ended September 30, 2008, net income available to common shareholders increased 26.9% to $8.9 million or $0.28 per share, as compared to $7.0 million, or $0.22 per share for the third quarter of 2007. Net income available to common shareholders for the nine months ended September 30, 2008 was $14.3 million, or $0.45 per share compared $13.9 million, or $0.44 per share for the first nine months of 2007. Net income available to common shareholders for the nine months ended September 30, 2008 was also impacted by the non-recurring charges described above.

Net income and FFO per share amounts above are on a diluted basis. FFO is a supplemental non-GAAP financial measure used as a standard in the real estate industry to measure and compare the operating performance of real estate companies. A complete reconciliation containing adjustments from GAAP net income to FFO is included in this press release.
Third Quarter Highlights

-- Received an upgrade from BBB- to BBB from Standard and Poor's Ratings Services on October 23, 2008
-- 31.2% debt-to-total market capitalization ratio, compared to 30.5% as of September 30, 2007
-- 3.92 times interest coverage ratio compared to 3.40 times last year
-- 4.7% increase in same center net operating income for the third quarter and year to date
-- 47.0% average increase in base rental rates on 77,000 square feet of re-leased space during the third quarter of 2008, 43.8% increase year to date, compared to a 37.6% increase year to date in 2007

-- 8.3% average increase in base rental rates on 56,000 square feet of signed renewals during the third quarter of 2008, 17.6% increase year to date, compared to a 13.2% increase year to date in 2007
-- 96.7% occupancy rate for wholly-owned properties, up 0.5% from June 30, 2008
-- Same-space tenant sales for the rolling twelve months ended September 30, 2008 increased 0.3% to $341 per square foot excluding two properties undergoing major renovations
Stanley K. Tanger, Chairman of the Board and Chief Executive Officer, commented, "Our third quarter results were very positive. Same center net operating income increased 4.7% for the quarter as a result of our continuing efforts to drive rental rates on the renewal and releasing of space. Our balance sheet is conservatively positioned given current financial and economic conditions."

Financing Activities and Balance Sheet Summary
On October 23, 2008, Tanger was upgraded by Standard and Poor's Ratings Services from BBB- to BBB, making it one of only two REITs to receive a ratings upgrade this year. The company also currently maintains an investment grade rating with Moody's Investors Service of Baa3.
On June 11, 2008, Tanger closed on a $235.0 million unsecured three year term loan facility. The facility bears interest at a spread over LIBOR of 160 basis points, with the spread adjusting over time, based upon the debt ratings of the company.

On June 26, 2008, the company used proceeds from the term loan to repay its only remaining mortgage with a principal balance of approximately $170.7 million two weeks ahead of its optional prepayment date. As a result of the repayment of this mortgage, Tanger's entire portfolio of wholly-owned properties is now unencumbered. The remaining proceeds of approximately $62.8 million, net of closing costs, were applied against amounts outstanding on the company's unsecured lines of credit and to settle two treasury based interest rate lock protection agreements.

On July 9, 2008, Tanger entered into a LIBOR based interest rate swap agreement, which effectively changes the floating rate of interest on $118.0 million of the unsecured three year term loan facility to a fixed rate of 5.21%. The interest rate swap agreement expires on April 1, 2011. Subsequently, on September 25, 2008, the company entered into an additional LIBOR based interest rate swap agreement, which effectively changes the floating rate of interest on the remaining $117.0 million of the unsecured three year term loan facility to a fixed rate of 5.30%. This interest rate swap agreement also expires on April 1, 2011.

As of September 30, 2008, Tanger had $783.3 million of debt outstanding, equating to a 31.2% debt-to-total market capitalization ratio. The company had $149.5 million outstanding on its $325.0 million in available unsecured lines of credit, and approximately 81% of Tanger's debt was at fixed interest rates as of September 30, 2008. During the third quarter of 2008, Tanger continued to maintain a strong interest coverage ratio of 3.92 times, compared to 3.40 times during the third quarter of last year.

Portfolio Operating Results
During the first nine months of 2008, Tanger executed 351 lease documents, totaling 1,521,000 square feet within its wholly-owned properties. Lease renewals accounted for 1,040,000 square feet, or 77.0% of the square feet which was scheduled to expire during 2008, and generated a 17.6% increase in average base rental rates on a straight-line basis. Base rental increases on re-tenanted space during the first nine months of 2008 averaged 43.8% on a straight-line basis and accounted for the remaining 481,000 square feet.

Same center net operating income increased 4.7% for the third quarter of 2008 and the first nine months of 2008 compared to the same period in 2007. Excluding two properties undergoing major renovations, reported tenant comparable sales per square foot for the rolling twelve months ended September 30, 2008 were up 0.3% to $341 per square foot, compared to $340 per square foot for the twelve months ended September 30, 2007. Sales were impacted by the general weakness in the U.S. economy, as well as severe weather and hurricanes during the third quarter of the year.

Investment and Other Activities
In Washington County, south of Pittsburgh, Pennsylvania, Tanger held a very successful grand opening celebration of its second center in the state on August 29, 2008. The first phase, totaling 370,000 square feet, was approximately 86% leased upon opening. The Washington County center is wholly owned by Tanger.

On October 23, 2008, Tanger held the grand opening of its center in Deer Park (Long Island), NY. The initial phase which contains approximately 656,000 square feet of retail space and 26,000 square feet of office space, opened to huge crowds and parking lots filled beyond their capacity. The retail space at the Deer Park center was approximately 77% leased upon opening. The Deer Park property is owned through a joint venture of which Tanger and two venture partners each own a one-third interest.

Based upon the tremendous response by customers at both of these centers' grand opening events, the company feels confident additional tenant interest in the remaining available space will remain high and additional signed leases for both properties will be completed during the first year stabilization period.

Tanger has entered into purchase options on new development sites located in Mebane, North Carolina and Irving, Texas. Tanger is continuing with its predevelopment work at these locations. However in October, 2008, Tanger made the decision to terminate its purchase options with respect to its potential sites in Port St. Lucie, Florida and Phoenix, Arizona. As a result, Tanger will be taking a charge of approximately $1.8 million relating to its predevelopment costs on these projects during the fourth quarter of 2008.

Tanger Elects New Board Member
At its meeting on October 28, 2008, the Nominating and Corporate Governance Committee of the company's Board of Directors recommended, and the Board of Directors approved, that the number of directors be expanded from six members to seven members, and that Ms. Bridget Ryan Berman shall serve as independent director of the company effective January 1, 2009 until the next Annual Shareholders Meeting.

Ms. Berman was formerly the Chief Executive Officer of Giorgio Armani Corp., the wholly-owned US subsidiary of Giorgio Armani S.p.A., one of the leading fashion and luxury goods groups in the world, from 2006 to 2007. Previously, she was Vice President/Chief Operating Officer of Apple Computer Retail from 2004 to 2005 and held various executive positions with Polo Ralph Lauren Corporation, including Group President of Polo Ralph Lauren Global Retail, from 1992 to 2004. Ms. Berman also served in various capacities at May Department Stores, Federated Department Stores, and Allied Stores Corp. from 1982 to 1992. In addition, Ms. Berman was a member of the board of directors, and served on the audit committee for J. Crew Group, Inc. from 2005 to 2006.

"We are pleased to add to our Board of Directors someone with Ms. Berman's credentials," said Steven B. Tanger, President and Chief Operating Officer. "Ms. Berman's extensive experience and impressive background in the retail industry will add value and perspective to our board."

2008 FFO Per Share Guidance
Based on current market conditions and the strength and stability of its core portfolio, the company currently believes its net income for 2008, excluding gains or losses on the sale of real estate, will be between $0.63 and $0.69 per share and its FFO for 2008 will be between $2.35 and $2.41 per share. The company's earnings estimates include the impact of the expected write-off of predevelopment costs mentioned above totaling approximately $1.8 million, but do not include the impact of any potential gains on the sale of land parcels or the impact of any potential sales or acquisitions of properties. The following table provides the reconciliation of estimated diluted net income available to common shareholders per share to estimated diluted FFO per share: For the twelve months ended December 31, 2008:
Low Range High Range
Estimated diluted net income per share $0.63 $0.69
Minority interest, gain/loss on the sale of
real estate, depreciation and amortization
uniquely significant to real estate
including minority interest share and our
share of joint ventures 1.72 1.72
Estimated diluted FFO per share $2.35 $2.41
Third Quarter Conference Call
Tanger will host a conference call to discuss its third quarter results for analysts, investors and other interested parties on Wednesday, October 29, 2008, at 10:00 A.M. eastern time. To access the conference call, listeners should dial 1-877-277-5113 and request to be connected to the Tanger Factory Outlet Centers Third Quarter 2008 Financial Results call. Alternatively, the call will be web cast by CCBN and can be accessed at the company's web site at http://www.tangeroutlet.com/investorrelations/news .
A telephone replay of the call will be available from October 29, 2008 starting at 1:00 P.M. Eastern Time through 11:59 P.M., November 7, 2008, by dialing 1-800-642-1687 (conference ID # 65292786). Additionally, an online archive of the broadcast will also be available through November 7, 2008.
About Tanger Factory Outlet Centers
Tanger Factory Outlet Centers, Inc. , a fully integrated, self-administered and self-managed publicly traded REIT, presently owns 30 outlet centers in 21 states coast to coast, totaling approximately 8.8 million square feet of gross leasable area. Tanger also manages for a fee and owns an interest in three outlet centers containing approximately 1.3 million square feet. Tanger is filing a Form 8-K with the Securities and Exchange Commission that includes a supplemental information package for the quarter ended September 30, 2008. For more information on Tanger Outlet Centers, visit our web site at www.tangeroutlet.com.
Estimates of future net income per share and FFO per share are by definition, and certain other matters discussed in this press release regarding our re-merchandising strategy, the renewal and re-tenanting of space, tenant sales and sales trends, interest rates, funds from operations, the development and opening of new centers, 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 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, 2007.

Ten Tips to Tanger Bargains

Hunting Trip More Fun
1 Plan Ahead... Visit tangeroutlet.com
Before heading to Tanger for a fun-filled day of outlet shopping, we suggest that you explore tangeroutlet.com first. Our site will provide all of the information that you will need to make the .most of your Tanger shopping trip. In addition to center locations and store listings, the Tanger website also features coupons and special offers that you can print and use on your Tanger shopping excursion. While visiting tangeroutlet.com you can also sign up for Tanger's E-mail Update. Each month, we'll keep you informed about exclusive store discounts, special offers .and exciting promotional events taking place at Tanger Outlet Centers coast to coast.

2 Make A List Of Specific Items You Are Looking To Find
Some Tanger Outlet Centers can feature more than 100 stores. It can be exciting to have so many great brand names and designer fashions to choose from when shopping. Don't make the mistake of leaving without the one thing you came for in the first place. When shopping for other people, make a note of their sizes and favorite colors ahead of time.

3 Visit The Customer Service Center
Upon arrival, check in at the Tanger Customer Service Center or center office. Inquire about the availability of discount coupons, updated store information, current sales and promotions in progress. Make sure to pick up a center brochure which provides a map of the store locations if you didn't get one in advance. You can also sign-up to become a TangerClub member. Club members receive special discounts, exclusive offers, free gifts and much more. If you are a frequent Tanger shopper, than TangerClub is perfect for you.

4 Shop Smart To Avoid The Most Crowded Time Of The Day
Tanger Outlet Centers are open 7 days a week. Maximize shopping time by going during the week instead of weekends, when stores are less crowded. Also, shop early or late in the day to avoid possible mid-day heat.

5 The More The Merrier
Shopping with friends or family members is always more fun and can lead to a more efficient shopping trip. For instance, when one person is trying on clothes, the others can be getting additional items and acting as fashion consultant. Remember, it's always best to have someone you trust with you when trying on clothing. Also, if check out lines get long, one can stay in line while the others go on to scout the next shop. Additionally, you can take advantage of multiple discounts when shopping in a pair. If stores are offering a two-for-one special and you only need one, you .can team up with one of your outlet shopping partners to share the added savings.

6 Outlet Shopping Is Fun For The Family
A bargain hunting trip to Tanger is a wonderful family activity. Tanger Outlet Centers have something for everyone. Your family will discover everything from the latest brand name fashions and accessories to home décor, books, music CDs, toys, outdoor gear, and much, much more. After a day of outlet shopping, everyone will have fun comparing all of the great deals they found.

7 Dress For Comfort
Comfort is a key to having a fun-filled shopping experience. Wear your most comfortable shoes and wear clothing that is easy to get in and out of. This will make trying on new clothing much easier. Carrying a lightweight handbag will help lighten your load. Also, dress for the season's weather since many times you must go outdoors to get from one store to the next.

8 Check Return Policies
Before making your purchase, check the store's return policy. Contrary to what most people believe, outlet stores now offer return policies similar to other retail establishments. Some will accept returns with no questions asked and offer cash refunds, while others will give store credit. This makes it safe to buy gifts which can be returned or exchanged, if necessary.

9 Utilize The Sales Help
Most outlet stores have very helpful sales associates who can help point out sale items and help you find the specific items you want. They are also privy to information about anticipated new shipments, the store's best bargains and any special services offered such as the ability to ship your purchases home.

10 Relax. It's Guaranteed. So Have Fun!
Tanger Outlet Shopping is meant to be fun. Enjoy the experience of buying and saving direct from the manufacturer, and be confident that you are buying your favorite brand name designer fashions at the best advertised price. If you purchase any merchandise from any Tanger Outlet Center store and find it advertised for less anywherre else within 30 days, bring a copy of the advertisment and a copy of your dated Tanger store receipt to the Tanger center management office (during business hours) within 30 days of your purchase. We'll gladly refund the difference in cash.

This offer is good on all merchandise at all Tanger Outlet Center stores nationwide. Guaranteed! So, when you're ready to shop - Relax. It's Guaranteed®.

FAQs
How is Tanger pronounced?

Tanger is pronounced "Tang·er" - rhymes with "hanger" Where do I find information about Tanger Outlets including center locations, directions, store listings, shopping hours, phone numbers, etc.? To find information about Tanger Outlet Centers, simply navigate our website or when you are not online, call 800-4-TANGER. Why is outlet shopping at Tanger so popular?
What could be more fun than spending the day with family and friends bargain hunting at Tanger! Tanger Outlet Centers feature more than 2,000 outlet stores which are owned and operated by the most popular, brand name manufacturers. Buying direct from the manufacturer at Tanger means you'll always save more.

How much will I save by shopping at Tanger?

Because you are making your purchases directly from the manufacturer (and avoiding the middleman), brand name merchandise can be purchased at 20%-40% below retail prices every day at Tanger Outlet Centers. What kind of merchandise is available at Tanger Outlet Centers?
The vast majority of merchandise available at Tanger Outlet Centers is first quality and in-season. Tanger centers feature brand name and designer fashions and accessories for the entire family, jewelry, housewares and china, home décor, luggage, toys, books, compact discs, food specialties, and much, much more. You'll find entire stores filled with merchandise from your favorite brands. A mall department store, on the other hand, typically has only a small area in the store devoted to a particular brand. Because each store is owned by the manufacturer, store employees will be very knowledgeable about their store's brand name merchandise.

Which charitable programs does Tanger support?

Tanger is committed to helping make the communities that we serve, better places to live and work. Tanger has concentrated its charitable efforts in two important areas: Children and Breast Cancer Awareness.

Through the company's annual Tanger Bucks For Schools Program, we partner with schools in our communities to provide funds to help purchase library books and other important classroom supplies. Tanger has been on the frontline in the battle against breast cancer since 1994. Our annual Breast Cancer Awareness Campaign has now raised in excess of $3.5 million nationally to benefit local American Cancer Society chapters.

Where can I find out about job openings at Tanger stores?

Tanger's brand name outlet stores across the country offer thousands of full and part time retail positions. To find out about job opportunities available at the Tanger Outlet Center nearest you, visit or call the Tanger Customer Service Center or check out the Human Resources section on tangeroutlet.com.