NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Our carrying value of investments in unconsolidated joint ventures differs from our share of the assets reported in the “Summary Balance Sheets – Unconsolidated Joint Ventures” shown below due to the cost of our investment in excess of the historical net book values of the unconsolidated joint ventures and other adjustments to the book basis, including intercompany profits on sales of services that are capitalized by the unconsolidated joint ventures. The differences in basis are amortized over the various useful lives of the related assets. Summary unaudited financial information of joint ventures accounted for using the equity method as of December 31, 2003 and 2002 is as follows (in thousands): Summary Balance Sheets – Unconsolidated Joint Ventures 2003 2002 Assets Investment properties at cost, net $ 63,899 $ 32,153 Cash and cash equivalents 4,145 514 Deferred charges, net 1,652 1,751 Other assets 3,277 1,491 Total assets $ 72,973 $ 35,909 Liabilities and Owners’ Equity Mortgage payable $ 54,683 $ 25,513 Construction trade payables 1,164 1,644 Accounts payable and other liabilities 564 522 Total liabilities 56,411 27,679 Owners’ equity 16,562 8,230 Total liabilities and owners’ equity $ 72,973 $ 35,909 Summary Statement of Operations – Unconsolidated Joint Ventures 2003 2002 Revenues $ 8,178 $ 4,119 Expenses Property operating 2,972 1,924 General and administrative 47 13 Depreciation and amortization 2,292 884 Total expenses 5,311 2,821 Operating income 2,867 1,298 Interest expense 1,371 578 Net income $ 1,496 $ 720 Tanger Factory Outlet Centers, Inc. share of Net income $ 819 $  392 Depreciation (real estate related) $ 1,101 $  422 50 | 2003 ANNUAL REPORT