FINANCIAL HIGHLIGHTS (In thousands, except per share and percent data) For the Year 2003 2002 %Change Total revenues $ 121,972 $ 110,809 + 10 Operating income $ 43,052 $ 38,762 + 11 Funds from operations (1) $ 47,039 $ 41,695 + 13 Dividends and distributions $ 32,554 $ 29,382 + 11 Average shares outstanding (2) 13,641 12,271 + 11 Weighted average GLA (3) 5,393 5,011 + 8 Average sales per square foot  $ 301 $ 294 + 2 Per Share Funds from operations (1) $ 3.45 $ 3.40 + 1 Dividends and distributions (4) $ 2.46 $ 2.45 — Dividend payout ratio (5) 71% 72% – 1 At Year-End Real estate assets, before depreciation $ 1,078,533 $ 622,399 + 73 Total assets $ 987,437 $ 477,675 + 107 Common shares outstanding 12,961 9,061 + 43 GLA open at year end Wholly-owned 5,299 5,469 Partially-owned (consolidated) 3,273 — Partially-owned (unconsolidated) 324 260 Managed 434 457 Total GLA open at year end 9,330 6,186 + 51 Occupancy rate (6) 96% 98% – 2 (1) Funds from Operations is defined as net income (loss) before extraordinary items and gains (losses) on sale or disposal of depreciable operating proper- ties, plus depreciation and amortization uniquely significant to real estate and after adjustments for unconsolidated partnerships and joint ventures. (2) Assumes all preferred shares, share and unit options and partnership units of the Operating Partnership are converted to common shares. (3) GLA represents square feet of gross leasable area of wholly-owned and partially-owned consolidated operating properties. (4)  Represents per share and unit amounts to common shareholders and holders of preferred shareholders which were $13.21 and $22.05 for 2003 and 2002, respectively. (5) Annual dividends and distributions as a percent of funds from operations for such year. (6) Represents occupancy only at centers in which we have an ownership interest. TANGER FACTORY OUTLET CENTERS, INC. | 5