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]

3 Months Ended

Mar. 31, 2020

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
	March 31,
	2020		2019
Restricted common shares	$	2,227	$	2,513
Notional unit performance awards	1,520		1,262
Options	41		43
Total equity-based compensation	$	3,788	$	3,818

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



	Three months ended
	March 31,
	2020		2019
Equity-based compensation expense capitalized	$	101	$	92

Schedule of Nonvested Performance-based Units Activity

The following table sets forth 2020 OPP performance targets and other relevant information about the 2020 OPP:



Performance targets ⁽¹⁾
Absolute portion of award:
Percent of total award	33.3%
Absolute total shareholder return range	36.8		%	-	52.1%
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⁾	30		th	-	80th
Percentage of units to be earned	20		%	-	100%

Maximum number of restricted common shares that may be earned	696,687
Grant date fair value per share	$	7.30


(1)	The number of restricted common shares received under the 2020 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 2020 OPP awards granted during the three months ended March 31, 2020 were determined at the grant dates using a Monte Carlo simulation pricing model and the following assumptions:



Risk free interest rate ⁽¹⁾	1.4	%
Expected dividend yield ⁽²⁾	8.4	%
Expected volatility ⁽³⁾	29	%


(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.