CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (In thousands, except share data) TANGER FACTORY OUTLET CENTERS, INC. | 39 The accompanying notes are an integral part of these consolidated financial statements. Accumlated Distributions Other Total Preferred Common Paid in in Excess of Comprehensive Shareholders’ Shares Shares Capital Net Income Loss Equity Balance, December 31, 2000 $ 1 $ 79 $ 136,358 $ (45,561) $ — $ 90,877  Comprehensive income Net income — — — 7,112  — 7,112  Other comprehensive (loss) — — — — (704) (704) Total comprehensive income — — — 7,112  (704) 6,408  Issuance of 10,800 common shares upon exercise of unit options — — 201  — — 201  Adjustment for minority interest in  the Operating Partnership — — (30) — — (30) Preferred dividends ($21.96 per share) — — — (1,770) — (1,770) Common dividends ($2.44 per share) — — — (19,315) — (19,315) Balance, December 31, 2001 $ 1 $ 79 $ 136,529 $ (59,534) $ (704) $ 76,371  Comprehensive income Net income — — — 11,007 — 11,007  Other comprehensive gain —  — —  — 541 541  Total comprehensive income — — — 11,007  541  11,548  Conversion of 410 preferred shares into 3,694 common shares — — — — — — Issuance of 127,620 common shares upon exercise of unit options — 1  2,793  — — 2,794  Issuance of 1,000,000 common shares, net of issuance costs of $1.3 million — 10  27,950  — — 27,960  Adjustment for minority interest in  the Operating Partnership — — (6,080) — — (6,080) Preferred dividends ($22.05 per share) — — — (1,771) — (1,771) Common dividends ($2.45 per share) — — — (20,187) — (20,187) Balance, December 31, 2002 $ 1 $ 90 $ 161,192 $ (70,485) $ (163) $ 90,635 Comprehensive income Net income — — — 12,849  — 12,849  Other comprehensive gain — — — — 118  118  Total comprehensive income — — — 12,849  118  12,967  Conversion of 78,701 preferred shares into 709,078 common shares (1) 7  (6) — — — Redemption of 1,489 preferred shares — — (372) — — .(372) Compensation under Unit Option Plan — — 80  — — 80  Issuance of 890,540 common shares upon exercise of unit options — 10  20,603  — — 20,613  Issuance of 2,300,000 common shares, net of issuance costs of $5.2 million — 23  87,969  — — 87,992  Adjustment for minority interest in  the Operating Partnership — — (19,396) — — (19,396) Preferred dividends ($13.21 per share) — — — (890) — (890) Common dividends ($2.46 per share) — — — (24,211) — (24,211) Balance, December 31, 2003 $ — $ 130 $ 250,070 $ (82,737) $ (45) $ 167,418