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

Quarterly report pursuant to Section 13 or 15(d)

Leases (Tables)

Leases (Tables)

6 Months Ended

Jun. 30, 2019

For the three and six months ended June 30, 2019, the components of rental revenues are as follows (in thousands):



	Three months ended June 30, 2019		Six months ended June 30, 2019
Rental revenues - fixed	$	89,262	$	182,721
Rental revenues - variable ⁽¹⁾	23,123		49,618
Rental revenues	$	112,385	$	232,339

(1)

Primarily includes rents based on a percentage of tenant sales volume and reimbursable expenses such as common area expenses, utilities, insurance and real estate taxes.

Future minimum lease receipts under non-cancelable operating leases

Future minimum lease receipts under non-cancelable operating leases as of June 30, 2019, excluding the effect of straight-line rent and variable rentals, are as follows (in thousands):



For the remainder of 2019	$	161,791
2020	315,266
2021	278,847
2022	243,310
2023	209,258
2024	173,803
Thereafter	325,913
	$	1,708,188

Future minimum lease receipts under non-cancelable operating leases

Future minimum lease receipts under non-cancelable operating leases as of December 31, 2018, excluding the effect of straight-line rent and variable rentals, are as follows (in thousands):



2019	$	285,343
2020	265,361
2021	229,553
2022	195,808
2023	164,845
Thereafter	364,844
	$	1,505,754

Components of lease costs

For the three and six months ended June 30, 2019, the components of lease costs are as follows (in thousands):



	Three months ended June 30, 2019		Six months ended June 30, 2019
Operating lease costs	$	1,372	$	2,776
Short-term lease costs	571		1,163
Variable lease costs ⁽¹⁾	53		131
Total lease costs	$	1,996	$	4,070

(1)

Our variable lease costs relate to our ground leases where increases in payments are based on center financial performance.

Lease term and discount rates

The lease term and discount rates are as follows:



	June 30, 2019
Weighted - average remaining lease term (years)	50
Weighted - average discount rate	5.0	%

Supplemental cash flow information

Supplemental Cash Flow Information

We purchase capital equipment and incur costs relating to construction of facilities, including tenant finishing allowances. Expenditures included in accounts payable and accrued expenses were as follows (in thousands):



	As of		As of
	June 30, 2019		June 30, 2018
Costs relating to construction included in accounts payable and accrued expenses	$	13,822	$	15,187

Interest paid, net of interest capitalized was as follows (in thousands):



	Six months ended June 30,
	2019		2018
Interest paid	$	29,284	$	30,074

Information related to non-cash assets and liabilities recorded as a result of the adoption of Accounting Standards Codification Topic 842 “Leases” (“ASC 842”) as of June 30, 2019 was as follows (in thousands):



	June 30, 2019
Non-Cash operating lease right-of-use assets exchanged for operating lease liabilities	$	87,679
Non-Cash operating lease liabilities exchanged for operating right-of-use assets	92,354

The difference between the recorded operating lease liabilities and operating right-of-use assets represents the accrued straight-line rent liability of $5.0 million and our prepaid rent balances of $307,000 previously recognized under Accounting Standards Codification Topic 840 “Leases” (“ASC 840”) that were reclassified to the operating leases right-of use assets under ASC 842.

Cash flow information related to leases for the six months ended June 30, 2019 (in thousands):



	June 30, 2019
Operating cash outflows related to operating leases	$	2,788

Maturity of lease liabilities

Maturities of lease liabilities as of June 30, 2019 for the next five years and thereafter are as follows (in thousands):



For the remainder of 2019	$	2,782
2020	5,568
2021	5,613
2022	5,669
2023	5,709
2024	5,765
Thereafter	226,837
Total lease payments	$	257,943
Less imputed interest	165,851
Present value of lease liabilities	$	92,092

Minimum lease payments

For operating leases as of December 31, 2018, minimum lease payments for the next five years and thereafter are as follows (in thousands):



2019	$	7,526
2020	7,311
2021	7,140
2022	7,127
2023	7,167
Thereafter	258,438
Total minimum payment	$	294,709