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

Quarterly report pursuant to Section 13 or 15(d)

Equity-Based Compensation of the Company (Tables)

Equity-Based Compensation of the Company (Tables) - Tanger Factory Outlet Centers, Inc. [Member]

6 Months Ended

Jun. 30, 2018

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

We recorded equity-based compensation expense in general and administrative expenses in our consolidated statements of operations as follows (in thousands):



	Three months ended				Six months ended
	June 30,				June 30,
	2018		2017		2018		2017
Restricted common shares	$	2,366	$	2,387	$	4,855	$	4,737
Notional unit performance awards	1,014		1,049		1,998		1,931
Options	99		68		192		128
Total equity-based compensation	$	3,479	$	3,504	$	7,045	$	6,796

Equity-based compensation expense capitalized as a part of rental property and deferred lease costs were as follows (in thousands):



	Three months ended				Six months ended
	June 30,				June 30,
	2018		2017		2018		2017
Equity-based compensation expense capitalized	$	461	$	264	$	552	$	510

Schedule of Nonvested Performance-based Units Activity

The following table sets forth 2018 OPP performance targets and other relevant information about the 2018 OPP:



Performance targets ⁽¹⁾
Absolute portion of award:
Percent of total award	33.3%
Absolute total shareholder return range	19.1% - 29.5%
Percentage of units to be earned	20%-100%

Relative portion of award:
Percent of total award	66.7%
Percentile rank of peer group range⁽²⁾	30th - 80th
Percentage of units to be earned	20%-100%

Maximum number of restricted common shares that may be earned	409,972
Grant date fair value per share	$	12.42


(1)	The number of restricted common shares received under the 2018 OPP will be determined on a pro-rata basis by linear interpolation between total shareholder return thresholds, both for absolute total shareholder return and for relative total shareholder return amongst the Company's peer group.


(2)	The peer group is based on companies included in the FTSE NAREIT Retail Index.

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The fair values of the 2018 OPP awards granted during the six months ended June 30, 2018 were determined at the grant dates using a Monte Carlo simulation pricing model and the following assumptions:



Risk free interest rate ⁽¹⁾	2.40	%
Expected dividend yield ⁽²⁾	4.8	%
Expected volatility ⁽³⁾	27	%


(1)	Represents the interest rate as of the grant date on US treasury bonds having the same life as the estimated life of the restricted unit grants.


(2)	The dividend yield is calculated utilizing the dividends paid for the previous five-year period.


(3)	Based on a mix of historical and implied volatility for our common shares and the common shares of our peer index companies over the measurement period.