Annual report pursuant to Section 13 and 15(d)

Debt of the Operating Partnership

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Debt of the Operating Partnership
 12 Months Ended
Dec. 31, 2024
Tanger Properties Limited Partnership [Member]  
Debt of the Operating Partnership Debt of the Operating Partnership
The debt of the Operating Partnership as of December 31, 2024 and 2023 consisted of the following (in thousands):
2024 2023
Stated Interest Rate(s) Maturity Date Maturity Date With Extension Option Principal
Book Value(1)
Principal
Book Value(1)
Senior, unsecured notes:  
Senior notes 3.125% September 2026 $ 350,000  $ 349,045  $ 350,000  $ 348,467 
Senior notes 3.875% July 2027 300,000  298,956  300,000  298,546 
Senior notes 2.750% September 2031 400,000  393,710  400,000  392,827 
Unsecured term loan Adj SOFR + 0.94% January 2027 January 2028 325,000  323,182  325,000  322,322 
Mortgages payable:
Atlantic City (2) (3)
6.440% December 2026 7,206  7,341  12,336  12,613 
Southaven Adj SOFR + 2.00% October 2026 October 2027 51,700  51,525  51,700  51,428 
Unsecured lines of credit Adj SOFR + 0.85% April 2028 April 2029 —  —  13,000  13,000 
Total $ 1,433,906  $ 1,423,759  $ 1,452,036  $ 1,439,203 
(1)Includes premiums, discounts and unamortized debt origination costs. These costs were $10.1 million and $12.8 million as of December 31, 2024 and 2023, respectively. As of December 31, 2024, and 2023, excludes $7.4 million and $2.1 million, respectively, of unamortized debt origination costs related to unsecured lines of credit, recorded in prepaids and other assets in the Consolidated Balance Sheet. Amortization of deferred debt origination costs included in interest expense for the years ended December 31, 2024, 2023 and 2022 was $3.5 million, $3.2 million and $3.1 million, respectively.
(2)The effective interest rate assigned during the purchase price allocation to the Atlantic City mortgages assumed during the acquisition in 2011 was 5.05%.
(3)Principal and interest due monthly with remaining principal due at maturity.

Certain of our properties, which had a net book value of approximately $65.5 million at December 31, 2024, serve as collateral for mortgages payable. As of December 31, 2024, we maintained unsecured lines of credit that provided for borrowings of up to $620.0 million. The unsecured lines of credit as of December 31, 2024 included a $20.0 million liquidity line and a $600.0 million syndicated line. As of December 31, 2024, the syndicated line may be increased up to $1.2 billion through an accordion feature in certain circumstances.

The unsecured lines of credit and senior unsecured notes include covenants that require the maintenance of certain ratios, including debt service coverage and leverage, and limit the payment of dividends such that dividends and distributions will not exceed FFO, as defined in the agreements, for the prior fiscal year on an annual basis or 95% of FFO on a cumulative basis. As of December 31, 2024, we believe we were in compliance with all of our debt covenants.
In May 2023, Fitch Ratings assigned a first-time ‘BBB’ long-term issuer default rating to the Company and the Operating Partnership, along with a Stable rating outlook. Fitch also assigned a ‘BBB’ rating to Operating Partnership’s senior unsecured debt, which includes our lines of credit, a term loan and senior notes. As a result, the applicable pricing margin on each of our unsecured lines of credit and our term loan was reduced by 25 basis points (including a 5 basis point reduction in the facility fee on the unsecured lines of credit).

2024 Transactions

Unsecured Lines of Credit Extension
In April 2024, we entered into amendments to our unsecured line of credit, which, among other things, increased the borrowing capacity from $520.0 million to $620.0 million, with an accordion feature to increase total borrowing capacity to $1.2 billion, extended the maturity date from July 14, 2025 to April 12, 2028 (which may be extended by one additional year by exercising extension options), and reduced the applicable pricing margin from Adjusted SOFR plus 100 basis points to Adjusted SOFR plus 85 basis points based on the Company's current credit rating.

2022 Transactions

Memphis Consolidated Joint Venture
In October 2022, the Southaven, Mississippi joint venture amended and restated its secured term loan, increasing the outstanding balance to $51.7 million from $40.1 million, extending the maturity date from April 2023 to October 2026 plus a one year extension option, with an interest rate of Adjusted SOFR + 2.00%.

Unsecured Term Loan
In October 2022, we amended and restated our unsecured term loan. The outstanding balance was increased from $300.0 million to $325.0 million and the maturity date was extended to January 2027 plus a one-year extension option. The interest rate changed from LIBOR + 1.25% to Adjusted SOFR + 1.20% based on our credit rating at that time. The amendment also incorporates a sustainability metric, reducing the applicable grid-based interest rate spread by one basis point annually, subject to meeting certain thresholds.

Amendment of Unsecured Line of Credit
In October 2022, we amended our unsecured lines of credit to change the interest rate index from LIBOR to Adjusted SOFR. All other terms remained unchanged.

Debt Maturities

Maturities and principal amortization of our consolidated existing debt as of December 31, 2024 for the next five years and thereafter are as follows (in thousands):
Calendar Year Amount
2025 $ 1,501 
2026 407,405 
2027 625,000 
2028 — 
2029 — 
Thereafter 400,000 
Subtotal 1,433,906 
Net discount and debt origination costs (10,147)
Total $ 1,423,759 

We have considered our short-term (one year or less from the date of filing these financial statements) liquidity needs and the adequacy of our estimated cash flows from operating activities and other financing sources to meet these needs. These other sources include but are not limited to: existing cash, ongoing relationships with certain financial institutions, our ability to sell debt or issue equity subject to market conditions and proceeds from the potential sale of non-core assets. We believe that we have access to the necessary financing to fund our short-term liquidity needs.