• Achieved a year-end occupancy rate of 97% in the original Tanger portfolio, rep- resenting the 22nd consecutive year we have obtained a year end occupancy rate of at least 95%. • Generated 277 new or renewal leases representing over 1.1 million square feet of leasable space. • Achieved an average initial base rent per square foot for new stores opened dur- ing 2003 of $18.83, versus $16.86 for stores closed during 2003, representing an increase of 11.7%. At this time, the Charter Oak portfolio of properties has only been under our man- agement for a short period of time, but outlet centers known as the Charter Oak portfolio. Our company joined with an affiliate of Blackstone Real Estate Advisors to acquire these assets in a joint venture for a purchase price of $491 million. These are large successful properties, with an average size of 364,000 square feet. As of year-end 2003, the Charter Oak portfolio had an average occupancy rate of 94%. We consider these assets to be the last high quality portfolio of outlet shopping centers available for acquisition, making it even more significant and exciting that we were able to close on this transac- tion.  Continuing to create value year after year requires a great deal of commitment in order to stay competitive and to meet our goals. As with other industries, the competition is tough and the work is not easy. Striving to remain a key player in the outlet industry, we took a tremendous step forward on December 19, 2003 by acquiring control of 3.3 million square feet of outlet space in nine You will be interested to know that many of our 430 full and part-time employ- ees are shareholders as well. As a group, our employees and management team currently owns approximately 3.3 million common shares and/or common operating partnership units of Tanger. This significant ownership in the company represents approximately 20% of the fully diluted common equity that is current- ly outstanding. Achieving consistent financial results and creating long-term value over many years is what we as a team strive for, as we stand shoulder to shoulder with you, our investors. We are totally committed to the long-term goal of continuing to grow the value of our mutual investment in Tanger.  Last year we wrote about our strong industry fundamentals, our consistent operating performance and the safety and reliability of our dividend. We are happy to report that nothing has changed. We raised our dividend once again in 2003, increasing it to $2.46 per share. We only used 71.3% of our FFO to pay our dividend, leaving us approximately $14.5 million of undistributed FFO to reinvest in our business. This marks the tenth consecutive year since becoming a public company that we have raised our dividend. Shareholders who invested in Tanger at the time of our IPO in May 1993 received a dividend of $1.68 per share, representing a dividend yield of 7.5%. Those original IPO shareholders who have held their shares through December 31, 2003, are now receiving an approximate 10.9% dividend yield on their initial $22.50 per share investment. In addition, they have received cumulative dividends in excess of their initial investment in Tanger. 8 | 2003 ANNUAL REPORT $ 122 ’03 ’02 ’01 ’00 ’99 $ 111 $ 105 $ 103 $ 100 TOTAL REVENUE (in millions of dollars) Sevierville, TN Blowing Rock, NC