According to Frank C. Marchisello Jr, executive vice president and CFO, the FFO gain can be partially attributed to the sale of land parcels during the third quarter resulting in gains of about $1.4 million. Without the land parcel sales, the company posted an increase FFO per share of 8%.
The loss is a result of the sale of the non-core asset, which created a net loss of 20 cents for the quarter compared to net income of 72 cents for the same period last year. On September 8, 2004, Tanger sold its 173,430-sf outlet center in Dalton, GA, for a total cash sales price of $11.5 million. After the deduction of all closing costs, Tanger received net proceeds of approximately $11 million. Tanger originally purchased this property in March 1998.
On a portfolio basis, Tanger reported a 1.5% increase in same-space sales per square foot for the third quarter of 2004 compared to the same period in 2003. Analysts lauded Tanger's increased transparency as it relates to same store sales.
Tanger made a penny adjustment to its 2004 guidance with net income ranging from 37 and 39 cents per share, and FFO between $3.77 and $3.78 per share, representing an increase of FFO of 9%. The company will release its 2005 guidance at the end of the year.
Tanger continues its pre-development and leasing of four previously announced sites located in Pittsburgh, PA; Deer Park, NY; Charleston, SC; and Wisconsin Dells, WI. Marchisello says that he expects the Charleston location to deliver first in 2005.
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