Previously, centers that were 50% leased, negotiated or with LOIs were given the go-ahead. The developer has now raised that minimum to 75%, said Steven Tanger, CEO. A previously announced project in Mebane, NC, has not hit that mark.
"I've taken a much more conservative outlook, and I want to make sure that we will be at least 75% occupied," at opening, he said.
Capital expenditures will drop to about $8 million this year and annually for the near term, compared with $30 million in 2008. A significant renovation program has been completed, so further investments are not needed, said CFO Frank J. Marchisello Jr. Acquisitions remain a possibility, though Tanger noted that none are on the market.
Wholly owned properties had a 94.7% occupancy rate. Year-to-date, the company has signed 1 million square feet of lease renewals, with an 11.6% average increase in base rental rates. Re-leased space of 224,000 square feet saw a 47.1% average base rental rate increase.
For the quarter, funds from operations (FFO) were $32.5 million, compared with FFO of $14.3 million for the same period last year. Same-center net operating income rose 1.8%. Net income available to common shareholders was $10.2 million, vs. a loss of $855,000 in the year-ago quarter.
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