| **UNITED                STATES**                                                        |
|-----------------------------------------------------------------------------------------|
| **SECURITIES                AND EXCHANGE COMMISSION**                                   |
| **Washington,                D.C. 20549**                                               |
|                                                                                    |
| FORM                10-Q                                                                |
|                                                                                    |
| [                X                ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF |
| THE                SECURITIES EXCHANGE ACT OF 1934                                      |
|                                                                                    |
| **For                the quarterly period ended September 30, 2006**                    |
| OR                                                                                      |
| [                ]                TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) of  |
| THE                SECURITIES EXCHANGE ACT OF 1934                                      |
|                                                                                    |
| For                the transition period from to                                        |
|                                                                                    |
| **Commission                File No.**                                                  |
| **333-136448**                                                                          |
| **333-128160-01**                                                                       |
| **33-99736-01**                                                                         |
| **333-3526-01**                                                                         |
| **333-39365-01**                                                                        |
| **333-61394-01**                                                                        |
|                                                                                    |
| **TANGER                PROPERTIES LIMITED PARTNERSHIP**                                |
| (Exact                name of Registrant as specified in its                Charter)    |

| **NORTH                CAROLINA**                | **56-1822494**                     |
|--------------------------------------------------|------------------------------------|
| (State                or other jurisdiction      | (I.R.S.                Employer    |
| of                incorporation or organization) | Identification                No.) |

| **3200                Northline Avenue, Suite 360, Greensboro, North Carolina                27408** |
|------------------------------------------------------------------------------------------------------|
| (Address                of principal executive offices)                                              |
| (Zip                code)                                                                            |

| **(336)                292-3010**                                                  |
|------------------------------------------------------------------------------------|
| (Registrant's                telephone number, including area                code) |

| Large                accelerated filer  ̈ | Accelerated                filer  ̈ | Non-accelerated                filer ý |
|-----------------------------------------------|-----------------------------------------|---------------------------------------------|

----

**TANGER      PROPERTIES LIMITED PARTNERSHIP**

|                                                                                             | Page                Number                                |
|--------------------------------------------------------------------------------------------------|-----------------------------------------------------------|
| Part                I. Financial Information                                                     |
| Item                1. Financial Statements (Unaudited)                                          |                                                      |
|                                                                                             | Consolidated                Balance Sheets -              |   |
|                                                                                             |                                                      | as                of September 30, 2006 and December 31, 2005 | 3 |
|                                                                                             |                                                      |   |
|                                                                                             | Consolidated                Statements of Operations -    |   |
|                                                                                             |                                                      | for                the three and nine months ended September 30, 2006 and                2005 | 4 |
|                                                                                             |                                                      |   |
|                                                                                             | Consolidated                Statements of Cash Flows -    |   |
|                                                                                             |                                                      | for                the nine months ended September 30, 2006 and 2005 | 5 |
|                                                                                             |                                                      |   |
|                                                                                             | Notes                to Consolidated Financial Statements | 6 |
|                                                                                             |                                                      |
| Item                2. Management's Discussion and Analysis of Financial                         |                                                      |
|                                                                                             | Condition                and Results of Operations        | 17 |
|                                                                                             |                                                      |
| Item                3. Quantitative and Qualitative Disclosures about Market                Risk | 30                                                        |
|                                                                                             |                                                      |
| Item                4. Controls and Procedures                                                   | 31                                                        |
|                                                                                             |                                                      |
| Part                II. Other Information                                                        |
|                                                                                             |                                                      |
| Item                1. Legal                Proceedings                                     | 32                                                        |
|                                                                                             |                                                      |
| Item                1A. Risk Factors                                                             | 32                                                        |
|                                                                                             |                                                      |
| Item                6. Exhibits                                                             | 32                                                        |
|                                                                                             |                                                      |
| Signatures                                                                                       | 33                                                        |

----

**PART      I. - FINANCIAL INFORMATION**

**Item      1 - Financial Statements**

**TANGER      PROPERTIES LIMITED PARTNERSHIP AND SUBSIDIARIES**

**CONSOLIDATED      BALANCE SHEETS**

|                                                      |                                                                                                                                                                                                                             |                                            September 30, |                                                  |                                       December 31, |
|-----------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                      |                                                                                                                                                                                                                             |                                            2006          |                                                  |                        2005                        |
| **ASSETS:**                                               |                                                                                                                                                                                                                             |                                                                                                                                                                                            |                                                  |                                                                                                                                                                  |   |   |   |   |
|                                                      | Rental                property                                                                                                                                                                                                   |                                                                                                                                                                                            |                                                  |                                                                                                                                                                  |   |   |   |   |   |
|                                                      | Land                                                                                                                                                                                                                             |                                                                                                                                                                                            | $                                                     | 130,250                                                                                                                                                               |   |   | $ | 120,715 |   |
|                                                      | Building,                improvement and fixtures                                                                                                                                                                                |                                                                                                                                                                                            |                                                  | 1,059,725                                                                                                                                                             |   |   |   | 1,004,545 |   |
|                                                      | Construction                in progress                                                                                                                                                                                          |                                                                                                                                                                                            |                                                  | ---                                                                                                                                                                   |   |   |   | 27,606 |   |
|                                                      |                                                                                                                                                                                                                             |                                                                                                                                                                                            | 1,189,975                                             |                                                                                                                                                                  |   |   | 1,152,866 |   |
|                                                      | Accumulated                depreciation                                                                                                                                                                                          |                                                                                                                                                                                            |                                                  | (266,054                                                                                                                                                              | ) |   |   | (253,765 | ) |
|                                                      | Rental                property, net                                                                                                                                                                                              |                                                                                                                                                                                            |                                                  | 923,921                                                                                                                                                               |   |   |   | 899,101 |   |
|                                                      | Cash                and cash equivalents                                                                                                                                                                                         |                                                                                                                                                                                            |                                                  | 20,184                                                                                                                                                                |   |   |   | 2,926 |   |
|                                                      | Assets                held for sale                                                                                                                                                                                              |                                                                                                                                                                                            |                                                  | ---                                                                                                                                                                   |   |   |   | 2,637 |   |
|                                                      | Investments                in unconsolidated joint ventures                                                                                                                                                                      |                                                                                                                                                                                            |                                                  | 14,581                                                                                                                                                                |   |   |   | 13,020 |   |
|                                                      | Deferred                charges, net                                                                                                                                                                                             |                                                                                                                                                                                            |                                                  | 57,915                                                                                                                                                                |   |   |   | 64,555 |   |
|                                                      | Other                assets                                                                                                                                                                                                      |                                                                                                                                                                                            |                                                  | 26,586                                                                                                                                                                |   |   |   | 18,124 |   |
|                                                      | **                                                Total assets** |                                                                                                                                                                                            | $                                                     | 1,043,187                                                                                                                                                             |   |   | $ | 1,000,363 |   |
| **LIABILITIES                AND PARTNERS’ EQUITY** |
| **Liabilities**                                           |                                                                                                                                                                                                                             |                                                                                                                                                                                            |                                                  |                                                                                                                                                                  |   |   |   |   |
|                                                      |                                                                                                                                                                                                                             | Debt                                                                                                                                                                                            |                                                  |                                                                                                                                                                  |   |   |   |   |   |   |
|                                                      | Senior,                unsecured notes (net of discount of $850 and                                                                                                                                                              |                                                                                                                                                                                            |                                                  |                                                                                                                                                                  |   |   |   |   |   |
|                                                      |          $901,              respectively)                                                                                                                                           |                                                                                                                                                                                            | $                                                     | 498,650                                                                                                                                                               |   |   | $ | 349,099 |   |
|                                                      | Mortgages                payable (including a debt premium                                                                                                                                                                       |                                                                                                                                                                                            |                                                  |                                                                                                                                                                  |   |   |   |   |   |
|                                                      |          of              $4,033 and $5,771, respectively)                                                                                                                                |                                                                                                                                                                                            |                                                  | 181,420                                                                                                                                                               |   |   |   | 201,233 |   |
|                                                      | Unsecured                note                                                                                                                                                                                                    |                                                                                                                                                                                            |                                                  | ---                                                                                                                                                                   |   |   |   | 53,500 |   |
|                                                      | Unsecured                lines of credit                                                                                                                                                                                         |                                                                                                                                                                                            |                                                  | ---                                                                                                                                                                   |   |   |   | 59,775 |   |
|                                                      |                                                                                                                                                                                                                             |                                                                                                                                                                                            |                                                  | 680,070                                                                                                                                                               |   |   |   | 663,607 |   |
|                                                      | Construction                trade payables                                                                                                                                                                                       |                                                                                                                                                                                            |                                                  | 21,049                                                                                                                                                                |   |   |   | 13,464 |   |
|                                                      | Accounts                payable and accrued expenses                                                                                                                                                                             |                                                                                                                                                                                            |                                                  | 27,008                                                                                                                                                                |   |   |   | 23,711 |   |
|                                                      |                                                                                                                                                                                                                             |                                                                                                                                                                                            | **Total                liabilities**                  |                                                                                                                                                                  |   | 728,127 |   |   |   | 700,782 |   |
| Commitments                                               |                                                                                                                                                                                                                             |                                                                                                                                                                                            |                                                  |                                                                                                                                                                  |   |   |   |   |
|                                                      |                                                                                                                                                                                                                             |                                                                                                                                                                                            |                                                  |                                                                                                                                                                  |   |   |   |   |
| **Partners’                equity**                 |                                                                                                                                                                                                                             |                                                                                                                                                                                            |                                                  |                                                                                                                                                                  |   |   |   |   |
|                                                      | General                partner                                                                                                                                                                                                   |                                                                                                                                                                                            |                                                  | 257                                                                                                                                                                   |   |   |   | 317 |   |
|                                                      | Limited                partners                                                                                                                                                                                                  |                                                                                                                                                                                            |                                                  | 312,270                                                                                                                                                               |   |   |   | 301,803 |   |
|                                                      | Deferred                compensation                                                                                                                                                                                             |                                                                                                                                                                                            |                                                  | ---                                                                                                                                                                   |   |   |   | (5,501 | ) |
|                                                      | Accumulated                other comprehensive income                                                                                                                                                                            |                                                                                                                                                                                            |                                                  | 2,533                                                                                                                                                                 |   |   |   | 2,962 |   |
|                                                      |                                                                                                                                                                                                                             |                                                                                                                                                                                            |  **Total                partners’ equity** |                                                                                                                                                                  |   | 315,060 |   |   |   | 299,581 |   |
|                                                      |                                                                                                                                                                                                                             |                                                                                                                                                                                            |                                                  | **Total                liabilities and partners’ equity**                                                                                                       |   | $ | 1,043,187 |   |   | $ | 1,000,363 |   |

----

**TANGER      PROPERTIES LIMITED PARTNERSHIP AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF OPERATIONS**

|                                                           |                                                       |                                                                                                                                                 |   |                                                                                                                                                                 |
|----------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                           |                                                       |                                    Three months ended |   |                                    Nine months ended                  |
|                                                           |                                                       |                                   September 30,       |   |                                                    September 30, |
|                                                           |                                                       |                                2006                                       |   |                                 2005                                                 |   |                                  2006 |   |                                  2005 |
| **Revenues**                                                   |                                                       |                                                                                                                                                 |   |                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           | Base                rentals                                | $                                                                                                                                                    | 35,403 |                                                                                                                                                                 |   | $ | 33,311 |   |   | $ | 102,247 |   |   | $ | 97,372 |   |
|                                                           | Percentage                rentals                          |                                                                                                                                                 |   | 1,736                                                                                                                                                                |   |   |   | 1,794 |   |   |   | 4,292 |   |   |   | 3,928 |   |
|                                                           | Expense                reimbursements                      |                                                                                                                                                 |   | 14,890                                                                                                                                                               |   |   |   | 13,925 |   |   |   | 41,357 |   |   |   | 40,160 |   |
|                                                           | Other                income                                |                                                                                                                                                 |   | 2,407                                                                                                                                                                |   |   |   | 1,563 |   |   |   | 5,266 |   |   |   | 3,675 |   |
|                                                           | Total                revenues                              |                                                                                                                                                 |   | 54,436                                                                                                                                                               |   |   |   | 50,593 |   |   |   | 153,162 |   |   |   | 145,135 |   |
|                                                           |                                                       |                                                                                                                                                 |   |                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| **Expenses**                                                   |                                                       |                                                                                                                                                 |   |                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           | Property                operating                          |                                                                                                                                                 |   | 17,713                                                                                                                                                               |   |   |   | 15,554 |   |   |   | 48,473 |   |   |   | 45,397 |   |
|                                                           | General                and administrative                  |                                                                                                                                                 |   | 4,147                                                                                                                                                                |   |   |   | 3,578 |   |   |   | 12,305 |   |   |   | 10,332 |   |
|                                                           | Depreciation                and amortization               |                                                                                                                                                 |   | 13,578                                                                                                                                                               |   |   |   | 11,923 |   |   |   | 43,121 |   |   |   | 35,919 |   |
|                                                           | Total                expenses                              |                                                                                                                                                 |   | 35,438                                                                                                                                                               |   |   |   | 31,055 |   |   |   | 103,899 |   |   |   | 91,648 |   |
| Operating                income                                |                                                       |                                                                                                                                                 | 18,998 |                                                                                                                                                                 |   |   | 19,538 |   |   |   | 49,263 |   |   |   | 53,487 |   |
| Interest                expense (including prepayment          |                                                       |                                                                                                                                                 |   |                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           | premium                and deferred loan cost write off of |                                                                                                                                                 |   |                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           | $917                for the 2006 periods)                  |                                                                                                                                                 |   | 10,932                                                                                                                                                               |   |   |   | 7,932 |   |   |   | 30,856 |   |   |   | 24,327 |   |
| **Income                before equity in earnings of**         |                                                       |                                                                                                                                                 |   |                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           | **unconsolidated                joint ventures, minority** |                                                                                                                                                 |   |                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           | **interest,                discontinued operations**       |                                                                                                                                                 |   |                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           | **and                loss on sale of real estate**         |                                                                                                                                                 |   | 8,066                                                                                                                                                                |   |   |   | 11,606 |   |   |   | 18,407 |   |   |   | 29,160 |   |
| Equity                in earnings of unconsolidated            |                                                       |                                                                                                                                                 |   |                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           | joint                ventures                              |                                                                                                                                                 |   | 539                                                                                                                                                                  |   |   |   | 255 |   |   |   | 971 |   |   |   | 714 |   |
| Minority                interest in consolidated joint venture |                                                       |                                                                                                                                                 | ---    |                                                                                                                                                                 |   |   | (6,860 | ) |   |   | --- |   |   |   | (20,211 | ) |
| **Income                from continuing operations**           |                                                       |                                                                                                                                                 | 8,605  |                                                                                                                                                                 |   |   | 5,001 |   |   |   | 19,378 |   |   |   | 9,663 |   |
| Discontinued                operations                         |                                                       |                                                                                                                                                 | ---    |                                                                                                                                                                 |   |   | 355 |   |   |   | 14,041 |   |   |   | 1,061 |   |
| **Income                before loss on sale of real estate**   |                                                       |                                                                                                                                                 | 8,605  |                                                                                                                                                                 |   |   | 5,356 |   |   |   | 33,419 |   |   |   | 10,724 |   |
| Loss                on sale of real estate excluded from       |                                                       |                                                                                                                                                 |   |                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           | discontinued                operations                     |                                                                                                                                                 |   | ---                                                                                                                                                                  |   |   |   | --- |   |   |   | --- |   |   |   | (4,690 | ) |
| **Net                income**                                  |                                                       | 8,605                                                                                                                                                |   |                                                                                                                                                                 |   | 5,356 |   |   |   | 33,419 |   |   |   | 6,034 |   |
| Preferred                unit distributions                    |                                                       |                                                                                                                                                 | (1,406 | )                                                                                                                                                                    |   |   | --- |   |   |   | (4,027 | ) |   |   | --- |   |
| **Net                income available to common**              |                                                       |                                                                                                                                                 |   |                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           | **unitholders**                                            |                                                                                                                                                 |   | 7,199                                                                                                                                                                |   |   |   | 5,356 |   |   |   | 29,392 |   |   |   | 6,034 |   |
| **Income                allocated to limited partners**        |                                                       |                                                                                                                                                 | 7,140  |                                                                                                                                                                 |   |   | 5,309 |   |   |   | 29,151 |   |   |   | 5,981 |   |
| **Income                allocated to general partner**         | $                                                          |                                                                                                                                                 | 59     |                                                                                                                                                                 |   | $ | 47 |   |   | $ | 241 |   |   | $ | 53 |   |
|                                                           |                                                       |                                                                                                                                                 |   |                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| **Basic                earnings per common unit**              |                                                       |                                                                                                                                                 |   |                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           | Income                from continuing operations           | $                                                                                                                                                    | .39    |                                                                                                                                                                 |   | $ | .29 |   |   | $ | .84 |   |   | $ | .29 |   |
|                                                           | Net                income                                  | $                                                                                                                                                    | .39    |                                                                                                                                                                 |   | $ | .31 |   |   | $ | 1.60 |   |   | $ | .36 |   |
|                                                           |                                                       |                                                                                                                                                 |   |                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| **Diluted                earnings per common unit**            |                                                       |                                                                                                                                                 |   |                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           | Income                from continuing operations           | $                                                                                                                                                    | .39    |                                                                                                                                                                 |   | $ | .29 |   |   | $ | .83 |   |   | $ | .29 |   |
|                                                           | Net                income                                  | $                                                                                                                                                    | .39    |                                                                                                                                                                 |   | $ | .31 |   |   | $ | 1.59 |   |   | $ | .36 |   |
|                                                           |                                                       |                                                                                                                                                 |   |                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions                paid per common unit              | $                                                          | .680                                                                                                                                                 |   |                                                                                                                                                                 | $ | .645 |   |   | $ | 2.005 |   |   | $ | 1.915 |   |
|                                                           |                                                       |                                                                                                                                                 |   |                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |

----

**TANGER      PROPERTIES LIMITED PARTNERSHIP AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

|                                          |                                                                         |                                                                                                                                |                                                     |     |    |    |   |     |   |    |   |   |
|-----------------------------------------------|------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------|----------|---------|---------|--------|----------|--------|---------|--------|--------|
|                                          |                                                                         |                                 Nine Months Ended   |                                                     |
|                                          |                                                                         |                                  September 30, |                                                     |
|                                          |                                                                         | 2006                                                                                                                                |                                                     |     | 2005    |    |
|                                          |                                                                         |                                                                                                                           |                                                     |
|  **OPERATING                ACTIVITIES** |                                                                         |                                                                                                                                |                                                     |     |    |    |   |     |
|                                          | Net                income                                                    |                                                                                                                                | $                                                        | 33,419   |    |    | $      | 6,034    |   |
|                                          | Adjustments                to reconcile net income to net cash               |                                                                                                                                |                                                     |     |    |    |   |     |   |
|                                          |                                                                         | provided                by operating activities:                                                                                    |                                                     |     |    |    |   |     |   |    |
|                                          |                                                                         | Depreciation                and amortization (including discontinued                                                                |                                                     |     |    |    |   |     |   |    |
|                                          |                                                                         |                                                                                                                                | operations)                                              |     |    | 43,237  |   |     |   | 36,458  |   |
|                                          |                                                                         | Amortization                of deferred financing costs                                                                             |                                                     |     | 1,289   |    |   |     | 1,005  |    |
|                                          |                                                                         | Equity                in earnings of unconsolidated joint ventures                                                                  |                                                     |     | (971    | )       |   |     | (714   | )       |
|                                          |                                                                         | Consolidated                joint venture minority interest                                                                         |                                                     |     | ---     |    |   |     | 20,211 |    |
|                                          |                                                                         | Compensation                expense related to restricted shares                                                                    |                                                     |     |    |    |   |     |   |    |
|                                          |                                                                         |                                                                                                                                | and                share options granted                 |     |    | 2,023   |   |     |   | 1,136   |   |
|                                          |                                                                         | Amortization                of debt premiums and discount, net                                                                      |                                                     |     | (1,870  | )       |   |     | (2,082 | )       |
|                                          |                                                                         | Gain                on sale of outparcels                                                                                           |                                                     |     | (402    | )       |   |     | (127   | )       |
|                                          |                                                                         | (Gain)                loss on sale of real estate                                                                                   |                                                     |     | (13,833 | )       |   |     | 4,690  |    |
|                                          |                                                                         | Distributions                received from unconsolidated joint ventures                                                            |                                                     |     | 1,775   |    |   |     | 1,475  |    |
|                                          |                                                                         | Net                accretion of market rent rate adjustment                                                                         |                                                     |     | (1,132  | )       |   |     | (583   | )       |
|                                          |                                                                         | Straight-line                base rent adjustment                                                                                   |                                                     |     | (1,698  | )       |   |     | (1,357 | )       |
|                                          |                  Increase (decrease) due to changes in:                 |                                                                                                                                |                                                     |     |    |    |   |     |   |
|                                          |                                                                         | Other                assets                                                                                                         |                                                     |     | (7,529  | )       |   |     | (4,762 | )       |
|                                          |                                                                         | Accounts                payable and accrued expenses                                                                                |                                                     |     | 2,947   |    |   |     | (1,092 | )       |
|                                          |                                                                         |                                                                                                                                | Net                cash provided by operating activities |     |    | 57,255  |   |     |   | 60,292  |   |
|  **INVESTING                ACTIVITIES** |                                                                         |                                                                                                                                |                                                     |     |    |    |   |     |
|                                          | Additions                to rental property                                  |                                                                                                                                |                                                     | (51,408  | )       |    |   | (20,799  | )      |
|                                          | Additions                to investments in unconsolidated joint ventures     |                                                                                                                                |                                                     | (2,020   | )       |    |   | (950     | )      |
|                                          | Additions                to deferred lease costs                             |                                                                                                                                |                                                     | (2,409   | )       |    |   | (2,216   | )      |
|                                          | Increase                in short-term investments                            |                                                                                                                                |                                                     | ---      |    |    |   | (20,000  | )      |
|                                          | Net                proceeds from sale of real estate and outparcels          |                                                                                                                                |                                                     | 21,378   |    |    |   | 2,211    |   |
|                                          |                                                                         |                                                                                                                                | Net                cash used in investing activities     |     |    | (34,459 | )      |     |   | (41,754 | )      |
|  **FINANCING                ACTIVITIES** |                                                                         |                                                                                                                                |                                                     |     |    |    |   |     |
|                                          | Cash                distributions paid                                       |                                                                                                                                |                                                     | (40,924  | )       |    |   | (32,222  | )      |
|                                          | Distributions                to consolidated joint venture minority interest |                                                                                                                                |                                                     | ---      |    |    |   | (16,450  | )      |
|                                          | Contributions                from sole shareholder of general partner        |                                                                                                                                |                                                     | 19,445   |    |    |   | 81,020   |   |
|                                          | Proceeds                from debt issuances                                  |                                                                                                                                |                                                     | 279,175  |    |    |   | 98,165   |   |
|                                          | Repayments                of debt                                            |                                                                                                                                |                                                     | (261,025 | )       |    |   | (149,521 | )      |
|                                          | Contributions                from consolidated joint venture partner         |                                                                                                                                |                                                     | ---      |    |    |   | 800      |   |
|                                          | Additions                to deferred financing costs                         |                                                                                                                                |                                                     | (4,155   | )       |    |   | (195     | )      |
|                                          | Proceeds                from exercise of share and unit options              |                                                                                                                                |                                                     | 1,946    |    |    |   | 1,970    |   |
|                                          |                                                                         |                                                                                                                                | Net                cash used in financing activities     |     |    | (5,538  | )      |     |   | (16,433 | )      |
|                                          | Net                increase in cash and cash equivalents                     |                                                                                                                                |                                                     | 17,258   |    |    |   | 2,105    |   |
|                                          | Cash                and cash equivalents, beginning of period                |                                                                                                                                |                                                     | 2,926    |    |    |   | 4,089    |   |
|                                          | Cash                and cash equivalents, end of period                      |                                                                                                                                | $                                                        | 20,184   |    |    | $      | 6,194    |   |

----

**TANGER      PROPERTIES LIMITED PARTNERSHIP AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

| **1.  ** | **Business** |
|--------------------|--------------|

| **2.  ** | **Basis                of Presentation** |
|--------------------|------------------------------------------|

| **3.  ** | **Development                of Rental Properties** |
|--------------------|-----------------------------------------------------|

***Charleston,      South Carolina***

----

| **4.  ** | **Investments                in Unconsolidated Real Estate Joint                Ventures** |
|--------------------|--------------------------------------------------------------------------------------------|

|  **Joint                Venture**     |  **Our                Ownership %** |  **Project                Location**   |
|--------------------------------------------|------------------------------------------|---------------------------------------------|
| TWMB                Associates, LLC        | 50%                                      | Myrtle                Beach, South Carolina |
| Tanger                Wisconsin Dells, LLC | 50%                                      | Wisconsin                Dells, Wisconsin   |
| Deer                Park Enterprise, LLC   | 33%                                      | Deer                Park, New York          |

|                      |        |                                                 Three Months Ended                 |                                                                Nine Months Ended |
|---------------------------|-------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                      |        |                                                                 September 30, |                                                 September 30,               |
|                      |        |                                                2006                                | 2005                                                                                                                                                                                                                                        | 2006 | 2005 |
| Fee:                      |        |                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                        |   |   |
|                      | Management  |                                                                                                                                                                                                                                          | $                104                                                                                                                                                                                                                        | $                78 | $                260 | $                234 |
|                      | Leasing     |                                                                                                                                                                                                                                          | 167                                                                                                                                                                                                                                         | (2) | 196 | 2 |
|                      | Marketing   |                                                                                                                                                                                                                                          | 22                                                                                                                                                                                                                                          | 16 | 66 | 48 |
|                      | Development |                                                                                                                                                                                                                                          | 151                                                                                                                                                                                                                                         | --- | 313 | --- |
| Total                Fees |        | $                444                                                                                                                                                                                                                          | $                92                                                                                                                                                                                                                         | $                835 | $                284 |

***Tanger      Wisconsin Dells, LLC***

----

***Deer      Park Enterprise, LLC***

----

|                                                      |                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                            |
|-----------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                      |                                                                  As                of |                                                                                        As of |
| **Summary                Balance Sheets**                 |                                                                  September 30,   |                                                            December 31,  |
| **-                Unconsolidated Joint Ventures**        |                                                                   2006      |                                                                         2005            |
| **Assets**                                                |                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                            |
|                                                      | Investment                properties at cost, net                                                                                                                                                                                                                                                            | $                74,913                                                                                                                                                                                                                                                                         | $                64,915 |
|                                                      | Construction                in progress                                                                                                                                                                                                                                                                                               | 29,776                                                                                                                                                                                                                                                                                          | 15,734 |
|                                                      | Cash                and cash equivalents                                                                                                                                                                                                                                                                                              | 14,173                                                                                                                                                                                                                                                                                          | 6,355 |
|                                                      | Deferred                charges, net                                                                                                                                                                                                                                                                                                  | 2,122                                                                                                                                                                                                                                                                                           | 1,548 |
|                                                      | Other                assets                                                                                                                                                                                                                                                                                                           | 21,141                                                                                                                                                                                                                                                                                          | 6,690 |
|                                                      |                                                                                                                                                                                                                                                                                                                                  | Total                assets                                                                                                                                                                                                                                                                     | $142,125 | $                95,242 |
| **Liabilities                and Owners’ Equity**   |                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                            |
|                                                      | Mortgages                payable                                                                                                                                                                                                                                                                                                      | $                99,561                                                                                                                                                                                                                                                                         | $                61,081 |
|                                                      | Construction                trade payables                                                                                                                                                                                                                                                                                            | 6,162                                                                                                                                                                                                                                                                                           | 6,588 |
|                                                      | Accounts                payable and other liabilities                                                                                                                                                                                                                                                                                 | 2,904                                                                                                                                                                                                                                                                                           | 1,177 |
|                                                      |                                                                                                                                                                                                                                                                                                                                  | Total                liabilities                                                                                                                                                                                                                                                                | 108,627 | 68,846 |
| Owners’                equity                       | 33,498                                                                                                                                                                                                                                                                                                                                | 26,396                                                                                                                                                                                                                                                                                          |
| Total                liabilities and owners’ equity | $142,125                                                                                                                                                                                                                                                                                                                              | $                95,242                                                                                                                                                                                                                                                                         |

|                                                       |                                                          Three Months        |                                                    Nine                Months               |
|------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                       |                                                          Ended               |                                                                                   Ended     |
| **Consolidated                Statements of Operations -** |                                                           September 30, |                                                                     September 30, |
| **Unconsolidated                Joint Ventures**           | 2006                                                                                                                                                                                                                                                                                      | 2005                                                                                                                                                                                                                                                                  | 2006 | 2005 |
|                                                       |                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                  |   |   |
| **Revenues**                                               | $                4,441                                                                                                                                                                                                                                                                    | $                2,735                                                                                                                                                                                                                                                | $                10,269 | $                8,179 |
|                                                       |                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                  |   |   |
| **Expenses**                                               |                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                  |   |   |
|                                                       | Property                operating                                                                                                                                                                                                                                                         | 1,726                                                                                                                                                                                                                                                                 | 888 | 3,958 | 2,929 |
|                                                       | General                and administrative                                                                                                                                                                                                                                                 | 58                                                                                                                                                                                                                                                                    | 4 | 131 | 19 |
|                                                       | Depreciation                and amortization                                                                                                                                                                                                                                              | 924                                                                                                                                                                                                                                                                   | 777 | 2,498 | 2,313 |
| Total                expenses                              | 2,708                                                                                                                                                                                                                                                                                     | 1,669                                                                                                                                                                                                                                                                 | 6,587 | 5,261 |
| **Operating                income**                        | 1,733                                                                                                                                                                                                                                                                                     | 1,066                                                                                                                                                                                                                                                                 | 3,682 | 2,918 |
| Interest                expense                            | 700                                                                                                                                                                                                                                                                                       | 584                                                                                                                                                                                                                                                                   | 1,847 | 1,575 |
| **Net                income**                              | $                1,033                                                                                                                                                                                                                                                                    | $                482                                                                                                                                                                                                                                                  | $                1,835 | $                1,343 |
|                                                       |                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                  |   |   |
| **Tanger’s                share of:**                |                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                  |   |   |
| Net                income                                  | $                539                                                                                                                                                                                                                                                                      | $                255                                                                                                                                                                                                                                                  | $                971 | $                714 |
| Depreciation                (real estate related)          | 444                                                                                                                                                                                                                                                                                       | 375                                                                                                                                                                                                                                                                   | 1,202 | 1,114 |

----

**5.**
**Disposition      of Properties**

***2006      Transactions***

|                                                |                                           |                                                                                                                                                       |   |                                                                                                                                                                                                           |
|-----------------------------------------------------|------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Summary                Statements of**            |                                           |                                                                                                                                                       |   |                                                                                                                                                                                                           |
| **Operations                - Disposed**            |                                           |                                   Three months ended             |   |                                      Nine months ended                                                |
| **Properties                Included in**           |                                           |                                     September 30, |   |                                         September 30,                             |
| **Discontinued                Operations**          |                                           |                              2006                                                         |   |                                                2005 |   |                                                    2006 |   |                            2005 |
|                                                |                                           |                                                                                                                                                       |   |                                                                                                                                                                                                           |   |   |   |   |
| **Revenues:**                                       |                                           |                                                                                                                                                       |   |                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                | Base                rentals                    |                                                                                                                                                       | $      | ---                                                                                                                                                                                                            |   |   | $ | 669 |   |   | $ | 448 |   |   | $ | 1,997 |   |
|                                                | Percentage                rentals              |                                                                                                                                                       |   | ---                                                                                                                                                                                                            |   |   |   | 21 |   |   |   | 6 |   |   |   | 40 |   |
|                                                | Expense                reimbursements          |                                                                                                                                                       |   | ---                                                                                                                                                                                                            |   |   |   | 323 |   |   |   | 229 |   |   |   | 1,004 |   |
|                                                | Other                income                    |                                                                                                                                                       |   | ---                                                                                                                                                                                                            |   |   |   | 32 |   |   |   | 14 |   |   |   | 73 |   |
|                                                | **Total                revenues**              |                                                                                                                                                       |   | ---                                                                                                                                                                                                            |   |   |   | 1,045 |   |   |   | 697 |   |   |   | 3,114 |   |
|                                                |                                           |                                                                                                                                                       |   |                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| **Expenses:**                                       |                                           |                                                                                                                                                       |   |                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                | Property                operating              |                                                                                                                                                       |   | ---                                                                                                                                                                                                            |   |   |   | 505 |   |   |   | 370 |   |   |   | 1,514 |   |
|                                                | General                and administrative      |                                                                                                                                                       |   | ---                                                                                                                                                                                                            |   |   |   | --- |   |   |   | 3 |   |   |   | 1 |   |
|                                                | Depreciation                and amortization   |                                                                                                                                                       |   | ---                                                                                                                                                                                                            |   |   |   | 185 |   |   |   | 116 |   |   |   | 538 |   |
|                                                | **Total                expenses**              |                                                                                                                                                       |   | ---                                                                                                                                                                                                            |   |   |   | 690 |   |   |   | 489 |   |   |   | 2,053 |   |
| **Discontinued                operations before**   |                                           |                                                                                                                                                       |   |                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                | **gain                on sale of real estate** |                                                                                                                                                       |   | ---                                                                                                                                                                                                            |   |   |   | 355 |   |   |   | 208 |   |   |   | 1,061 |   |
| Gain                on sale of real estate included |                                           |                                                                                                                                                       |   |                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                | in                discontinued operations      |                                                                                                                                                       |   | ---                                                                                                                                                                                                            |   |   |   | --- |   |   |   | 13,833 |   |   |   | --- |   |
| **Discontinued                operations**          | $                                              |                                                                                                                                                       | ---    |                                                                                                                                                                                                           |   | $ | 355 |   |   | $ | 14,041 |   |   | $ | 1,061 |   |
|                                                |                                           |                                                                                                                                                       |   |                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |

***2005      Transactions***

----

***Outparcel      Sales***

|                                                   |   |                             Three                Months Ended |                                            Nine Months Ended   |
|--------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                   |   |                                            September 30,           |                                             September 30, |
|                                                   |   | 2006                                                                                                                                                                                                      | 2005                                                                                                                                                                                                  | 2006 | 2005 |
| Number                of outparcels                    |   | 1                                                                                                                                                                                                         | ---                                                                                                                                                                                                   | 4 | 1 |
| Net                proceeds                            |   | $287                                                                                                                                                                                                      | $---                                                                                                                                                                                                  | $1,150 | $252 |
| Gains                on sales included in other income |   | $177                                                                                                                                                                                                      | $---                                                                                                                                                                                                  | $402 | $127 |

| **6.  ** | **Debt** |
|--------------------|----------|

----

| **7.  ** | **Other                Comprehensive Income** |
|--------------------|-----------------------------------------------|

|                                                                |   |                                         Three Months Ended |   |                            Nine                Months Ended |   |
|---------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                |   |                                         September 30,      |   |                                            September 30,    |   |
|                                                                |   |                                                                                                                                                                               | 2006   |                                                                                                                                                                                               |   | 2005 |   |   | 2006 |   |   | 2005 |   |
| Net                income                                           |   | $                                                                                                                                                                                  | 8,605  |                                                                                                                                                                                               | $      | 5,356 |   | $ | 33,419 |   | $ | 6,034 |   |
| Other                comprehensive income:                          |   |                                                                                                                                                                               |   |                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |
| Reclassification                adjustment for amortization of gain |   |                                                                                                                                                                               |   |                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |
| on                settlement of US treasury rate lock included      |   |                                                                                                                                                                               |   |                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |
| in                net income                                        |   |                                                                                                                                                                               | (62    | )                                                                                                                                                                                                  |   | --- |   |   | (183 | ) |   | --- |   |
|                                                                |   |                                                                                                                                                                               |   |                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |
| Change                in fair value of treasury rate locks          |   |                                                                                                                                                                               | (7,490 | )                                                                                                                                                                                                  |   | 1,416 |   |   | (350 | ) |   | 1,416 |   |
|                                                                |   |                                                                                                                                                                               |   |                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |
| Change                in fair value of our portion of TWMB cash     |   |                                                                                                                                                                               |   |                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |
| flow                hedge                                           |   |                                                                                                                                                                               | (333   | )                                                                                                                                                                                                  |   | 381 |   |   | 104 |   |   | (60 | ) |
| Other                comprehensive income                           |   |                                                                                                                                                                               | (7,885 | )                                                                                                                                                                                                  |   | 1,797 |   |   | (429 | ) |   | 1,356 |   |
| Total                comprehensive income                           |   | $                                                                                                                                                                                  | 720    |                                                                                                                                                                                               | $      | 7,153 |   | $ | 32,990 |   | $ | 7,390 |   |

| **8.  ** | **Share-Based                Compensation** |
|--------------------|---------------------------------------------|

|                                          |   |                                                 Three Months Ended        |                                            Nine Months Ended         |
|-----------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                          |   |                                                   September 30, |                                              September 30, |
|                                          |   | 2006                                                                                                                                                                                                                                      | 2005                                                                                                                                                                                                        | 2006 | 2005 |
| Restricted                shares              |   | $                584                                                                                                                                                                                                                 | $                369                                                                                                                                                                                        | $                1,612 | $                906  |
| Share                and unit options         |   | 296                                                                                                                                                                                                                                  | 58                                                                                                                                                                                                          | 411 | 230  |
| Total                share based compensation |   | $                880                                                                                                                                                                                                                 | $                427                                                                                                                                                                                        | $                2,023 | $                1,136  |

----

|                              | Options                Outstanding | Options                Exercisable                                                                                 |
|-----------------------------------|------------------------------------|--------------------------------------------------------------------------------------------------------------------|
|                              |                               |                                                                                                               | Weighted                average |   |   |
|                              |                               |                                Weighted | remaining |   |                             Weighted |
| Range                of           |                               |                                average  | contractual |   |                             average |
| exercise                prices    | Options                            |                             exercise price             | life                in years | Options |                             exercise price |
| $18.625                to $22.125 | 28,000                             | $                19.69                                                                                             | 3.08 | 28,000 | $                19.69 |
| $30.125                to $38.76  | 31,000                             | 34.30                                                                                                              | 4.32 | 22,000 | 32.48 |
| $38.83                to $47.92   | 200,750                            | 39.00                                                                                                              | 7.58 | 56,950 | 38.92 |
|                              | 259,750                            | $36.38                                                                                                             | 6.71 | 106,950 | $32.56 |

|                                                |                              |          |   |                |   |                         |      |   | Weighted-   |                 |      |
|-----------------------------------------------------|-----------------------------------|---------------|--------|---------------------|--------|------------------------------|-----------|--------|-------------|----------------------|-----------|
|                                                |                              |          |   |                |   |                         | Weighted- |   | average     |                 |      |
|                                                |                              |          |   |                |   |                         | average   |   | remaining   |                 | Aggregate |
|                                                |                              |          |   |                |   |                         | exercise  |   | contractual |                 | intrinsic |
| **Options**                                         |                              | Options       |   | price               |   | life                in years |      | value  |
| Outstanding                as of December 31, 2005  | 316,120                 |          | $36.16 |                |   |                         |      |
|                                                | Granted                           |          |   | ---                 |   | ---                          |      |   |        | $                --- |
|                                                | Exercised                         |          |   | (52,910   | )      | 35.03                        |      |   |        | 1,656                |
|                                                | Forfeited                         |          |   | (3,460    | )      | 38.83                        |      |   |        | ---                  |
| Outstanding                as of September 30, 2006 | 259,750                 |          | $36.36 |                | 6.71   |                         | $9,060    |
|                                                |                              |          |   |                |   |                         |      |
| Vested                and Expected to Vest as of    |                              |          |   |                |   |                         |      |
|                                                | September                30, 2006 | 252,643  |   | $36.28              |   | 6.71                         |      | $8,832 |
|                                                |                              |          |   |                |   |                         |      |
| Exercisable                as of September 30, 2006 | 106,950                      |          | $32.56 |                | 5.46   |                         | $4,137    |
|                                                |                              |          |   |                |   |                         |      |   |        |                 |      |

----

|                                          |      |                                |                             |                                                                |   | Weighted                average                               |
|-----------------------------------------------|-----------|-------------------------------------|----------------------------------|---------------------------------------------------------------------|--------|---------------------------------------------------------------|
|                                          |      |                                |                             | Number                of                                            |   | grant                date       |
| **Unvested                Restricted Units**  |      | units      |                        | fair                value        |
| Unvested                at December 31, 2005  |      | 112,793              |                             | $41.90                                                              |
|                                          | Granted   |                                | 82,000            |                                                                | 63.83  |
|                                          | Vested    |                                | (375                   | )                                                                   | 38.76  |
|                                          | Forfeited |                                | (1,000            | )                                                                   | 64.16  |
| Unvested                at September 30, 2006 |      | 193,418              |                             | $51.09                                                              |
|                                          |      |                                |                             |                                                                |   |                                                          |

| **9.  ** | **Earnings                Per Unit** |
|--------------------|--------------------------------------|

|                                                          |   |                                   Three Months Ended                  |   |                                                            Nine Months Ended         |   |
|---------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                          |   |                                                    September 30, |   |                                                              September 30, |   |
|                                                          |   |                                                                                                                                                            | 2006   |                                                                                                                                                                                                                        |   | 2005 |   |   | 2006 |   |   | 2005 |   |
| **Numerator**                                                 |   |                                                                                                                                                            |   |                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations              |   | $                                                                                                                                                               | 8,605  |                                                                                                                                                                                                                        | $      | 5,001 |   | $ | 19,378 |   | $ | 9,663 |   |
| Loss                on sale of real estate                    |   |                                                                                                                                                            | ---    |                                                                                                                                                                                                                        |   | --- |   |   | --- |   |   | (4,690 | ) |
| Less                applicable preferred unit distributions   |   |                                                                                                                                                            | (1,406 | )                                                                                                                                                                                                                           |   | --- |   |   | (4,027 | ) |   | --- |   |
| Income                from continuing operations available to |   |                                                                                                                                                            |   |                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |
|   common                unitholders                 |   |                                                                                                                                                            | 7,199  |                                                                                                                                                                                                                        |   | 5,001 |   |   | 15,351 |   |   | 4,973 |   |
| Discontinued                operations                        |   |                                                                                                                                                            | ---    |                                                                                                                                                                                                                        |   | 355 |   |   | 14,041 |   |   | 1,061 |   |
| Net                income available to common unitholders     |   | $                                                                                                                                                               | 7,199  |                                                                                                                                                                                                                        | $      | 5,356 |   | $ | 29,392 |   | $ | 6,034 |   |
| **Denominator**                                               |   |                                                                                                                                                            |   |                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |
| Basic                weighted average common units            |   |                                                                                                                                                            | 18,343 |                                                                                                                                                                                                                        |   | 17,221 |   |   | 18,324 |   |   | 16,874 |   |
| Effect                of outstanding unit options             |   |                                                                                                                                                            | 114    |                                                                                                                                                                                                                        |   | 88 |   |   | 117 |   |   | 81 |   |
| Effect                of unvested restricted unit awards      |   |                                                                                                                                                            | 68     |                                                                                                                                                                                                                        |   | 48 |   |   | 54 |   |   | 31 |   |
| Diluted                weighted average common units          |   |                                                                                                                                                            | 18,525 |                                                                                                                                                                                                                        |   | 17,357 |   |   | 18,495 |   |   | 16,986 |   |
|                                                          |   |                                                                                                                                                            |   |                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |
| **Basic                earnings per common unit**             |   |                                                                                                                                                            |   |                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations              |   | $                                                                                                                                                               | .39    |                                                                                                                                                                                                                        | $      | .29 |   | $ | .84 |   | $ | .29 |   |
| Discontinued                operations                        |   |                                                                                                                                                            | ---    |                                                                                                                                                                                                                        |   | .02 |   |   | .76 |   |   | .07 |   |
| Net                income                                     |   | $                                                                                                                                                               | .39    |                                                                                                                                                                                                                        | $      | .31 |   | $ | 1.60 |   | $ | .36 |   |
|                                                          |   |                                                                                                                                                            |   |                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |
| **Diluted                earnings per common unit**           |   |                                                                                                                                                            |   |                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations              |   | $                                                                                                                                                               | .39    |                                                                                                                                                                                                                        | $      | .29 |   | $ | .83 |   | $ | .29 |   |
| Discontinued                operations                        |   |                                                                                                                                                            | ---    |                                                                                                                                                                                                                        |   | .02 |   |   | .76 |   |   | .07 |   |
| Net                income                                     |   | $                                                                                                                                                               | .39    |                                                                                                                                                                                                                        | $      | .31 |   | $ | 1.59 |   | $ | .36 |   |
|                                                          |   |                                                                                                                                                            |   |                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |

----

|                            |                            | 2006                   |                   | 2005       |
|---------------------------------|---------------------------------|------------------------|------------------------|------------|
| Preferred                units: |                            |                   |                   |       |
|                            | Limited                partners |                   | 3,000,000    |       | 2,200,000 |
| Common                units:    |                            |                   |                   |       |
|                            | General                partner  |                   | 150,000      |       | 150,000 |
|                            | Limited                partners |                   | 18,392,573   |       | 18,257,663 |
| Total                           |                            | 18,542,573   |                   | 18,407,663 |

| **10.  ** | **Derivatives** |
|---------------------|-----------------|

|  **Financial                Instrument Type**       | Notional                Value |  Rate |  Maturity            |   |  Fair                Value |   |
|----------------------------------------------------------|-------------------------------|------------|---------------------------|--------|---------------------------------|--------|
| **TANGER                PROPERTIES LIMITED PARTNERSHIP** |                          |       |                      |   |
| US                Treasury Lock                          | $100,000,000                  | 4.526%     | July                2008  | $      | 254,000               |   |
| US                Treasury Lock                          | $100,000,000                  | 4.715%     | July                2008  | $      | (917,000              | )      |
|                                                     |                          |       |                      |   |                            |   |
| **TWMB,                ASSOCIATES, LLC**                 |                          |       |                      |   |                            |   |
| LIBOR                Interest Rate Swap                  | $35,000,000                   | 4.59%      | March                2010 | $      | 389,000               |   |

**11.      Preferred Share Offering**

----

**12.      Non-Cash Investing Activities**

| **13.  ** | **New                Accounting Pronouncements** |
|---------------------|--------------------------------------------------|

**14.      Subsequent Events**

----

**Item      2. Management's Discussion and Analysis of Financial Condition and Results      of      Operations**

**Cautionary      Statements**

**General      Overview**

|                                            |   |   | No.                of   Centers  |   |   | GLA(000’s | )      |   | States |   |
|-------------------------------------------------|--------|--------|-------------------------------------------------|--------|--------|-----------------|--------|--------|--------|--------|
| As                of September 30, 2005         |   |   | 31                                              |   |   | 8,227           |   |   | 22     |   |
| New                development/expansion:       |   |   |                                            |   |   |            |   |   |   |   |
|  Locust                Grove, Georgia      |   |   | ---                                             |   |   | 11              |   |   | ---    |   |
|  Foley,                Alabama             |   |   | ---                                             |   |   | 21              |   |   | ---    |   |
|  Charleston,                South Carolina |   |   | 1                                               |   |   | 352             |   |   | ---    |   |
| Dispositions:                                   |   |   |                                            |   |   |            |   |   |   |   |
|  Pigeon                Forge, Tennessee    |   |   | (1                                              | )      |   | (95             | )      |   | ---    |   |
|  North                Branch, Minnesota    |   |   | (1                                              | )      |   | (134            | )      |   | (1     | )      |
| Other                                           |   |   | ---                                             |   |   | 7               |   |   | ---    |   |
| As                of September 30, 2006         |   |   | 30                                              |   |   | 8,389           |   |   | 21     |   |

----

| **                               Location** | **GLA  **          |   | **%      ** |
|------------------------------------------------------------------------------------------------------------------------|------------------------------|--------|-------------------------------------------|
| **Wholly                Owned Properties**                                                                             | **(sq.                ft.)** |   | **Occupied**                              |
| Riverhead,                NY (1)                                                                                       | 729,315                      |   | 98.1                                      |
| Rehoboth                Beach, DE (1)                                                                             | 568,873                      |   | 100.0                                     |
| Foley,                AL                                                                                               | 557,093                      |   | 96.0                                      |
| San                Marcos, TX                                                                                          | 442,510                      |   | 97.6                                      |
| Myrtle                Beach Hwy 501, SC                                                                                | 427,417                      |   | 94.1                                      |
| Sevierville,                TN (1)                                                                                | 419,038                      |   | 100.0                                     |
| Hilton                Head, SC                                                                                         | 393,094                      |   | 87.8                                      |
| Charleston,                SC                                                                                          | 352,260                      |   | 80.5                                      |
| Commerce                II, GA                                                                                         | 346,244                      |   | 96.0                                      |
| Howell,                MI                                                                                              | 324,631                      |   | 99.2                                      |
| Park                City, UT                                                                                           | 300,602                      |   | 99.3                                      |
| Locust                Grove, GA                                                                                        | 293,868                      |   | 93.2                                      |
| Westbrook,                CT                                                                                           | 291,051                      |   | 96.2                                      |
| Branson,                MO                                                                                             | 277,883                      |   | 99.8                                      |
| Williamsburg,                IA                                                                                        | 277,230                      |   | 98.3                                      |
| Lincoln                City, OR                                                                                        | 270,280                      |   | 95.6                                      |
| Tuscola,                IL                                                                                             | 256,514                      |   | 70.4                                      |
| Lancaster,                PA                                                                                           | 255,152                      |   | 100.0                                     |
| Gonzales,                LA                                                                                            | 243,499                      |   | 100.0                                     |
| Tilton,                NH                                                                                              | 227,998                      |   | 94.3                                      |
| Fort                Meyers, FL                                                                                         | 198,924                      |   | 100.0                                     |
| Commerce                I, GA                                                                                          | 185,750                      |   | 87.1                                      |
| Terrell,                TX                                                                                             | 177,490                      |   | 90.6                                      |
| West                Branch, MI                                                                                         | 112,120                      |   | 100.0                                     |
| Barstow,                CA                                                                                             | 109,600                      |   | 100.0                                     |
| Blowing                Rock, NC                                                                                        | 104,280                      |   | 100.0                                     |
| Nags                Head, NC                                                                                           | 82,178                       |   | 100.0                                     |
| Boaz,                AL                                                                                                | 79,575                       |   | 98.1                                      |
| Kittery                I, ME                                                                                           | 59,694                       |   | 100.0                                     |
| Kittery                II, ME                                                                                          | 24,619                       |   | 93.6                                      |
| Totals                (2)                                                                                              | 8,388,782                    |   | 96.0                                      |
|                                                                                                                   |                         |   |                                      |

| **Unconsolidated                Joint Ventures** |    |   |   |
|--------------------------------------------------|---------|--------|--------|
| Wisconsin                Dells, WI               | 264,929 |   | 98.9   |
| Myrtle                Beach Hwy 17, SC (1)       | 401,992 |   | 100.0  |

| **Managed                Properties** |    |   |   |
|---------------------------------------|---------|--------|--------|
| North                Branch, MN       | 134,480 |   | N/A    |
| Pigeon                Forge, TN       | 94,694  |   | N/A    |
| Burlington,                NC         | 64,288  |   | N/A    |

| (1)   | These                properties or a portion thereof are subject to a ground                lease. |
|-----------------|----------------------------------------------------------------------------------------------------|

| (2)   | Total                excludes the occupancy of the Charleston, South Carolina center which                is                not yet stabilized. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

----

|     **Location** |    GLA                  (sq.                ft.) |  Mortgage                Debt (000’s) as ofSeptember                30, 2006          |    Interest                Rate |    Maturity                Date |
|--------------------------------------|---------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------|------------------------------------------------|
| **GMAC**                             |                                                                      |                                                                                                                                          |                                           |                                           |
|                                 | Rehoboth                Beach, DE                                         | 568,873                                                                                                                                       |                                           |                                           |   |
|                                 | Foley,                AL                                                  | 557,093                                                                                                                                       |                                           |                                           |   |
|                                 | Myrtle                Beach Hwy 501, SC                                   | 427,417                                                                                                                                       |                                           |                                           |   |
|                                 | Hilton                Head, SC                                            | 393,094                                                                                                                                       |                                           |                                           |   |
|                                 | Park                City, UT                                              | 300,602                                                                                                                                       |                                           |                                           |   |
|                                 | Westbrook,                CT                                              | 291,051                                                                                                                                       |                                           |                                           |   |
|                                 | Lincoln                City, OR                                           | 270,280                                                                                                                                       |                                           |                                           |   |
|                                 | Tuscola,                IL                                                | 256,514                                                                                                                                       |                                           |                                           |   |
|                                 | Tilton,                NH                                                 | 227,998                                                                                                                                       |                                           |                                           |   |
|                                 | 3,292,922                                                                 | $177,387                                                                                                                                      | 6.59%                                          | 7/10/2008                                      |
|                                 | Net                debt premium                                           | 4,033                                                                                                                                         |                                           |                                           |
| **Totals**                           |                                                                      | $181,420                                                                                                                                      |                                           |                                           |
|                                 |                                                                      |                                                                                                                                          |                                           |                                           |

----

**RESULTS      OF OPERATIONS**

**Comparison      of the three months ended September 30, 2006 to the three months ended September      30, 2005**

----

| **Summary                of discontinued operations**        |   |   | 2006 |   |   | 2005 |   |
|--------------------------------------------------------------|--------|--------|------|--------|--------|------|--------|
| Operating                income from discontinued operations |   | $      | ---  |   | $      | 355  |   |
| Gain                on sale of real estate                   |   |   | ---  |   |   | ---  |   |
| Discontinued                operations                       |   | $      | ---  |   | $      | 355  |   |

**Comparison      of the nine months ended September 30, 2006 to the nine months ended September      30, 2005**

----

----

| **Summary                of discontinued operations**        |   |   | 2006   |   |   | 2005  |   |
|--------------------------------------------------------------|--------|--------|--------|--------|--------|-------|--------|
| Operating                income from discontinued operations |   | $      | 208    |   | $      | 1,061 |   |
| Gain                on sale of real estate                   |   |   | 13,833 |   |   | ---   |   |
| Discontinued                operations                       |   | $      | 14,041 |   | $      | 1,061 |   |

**LIQUIDITY      AND CAPITAL RESOURCES**

***Current      Developments and Dispositions***

----

*WHOLLY-OWNED      CURRENT DEVELOPMENTS*

*WHOLLY-OWNED      DISPOSITIONS*

*UNCONSOLIDATED      JOINT VENTURES*

***Tanger      Wisconsin Dells, LLC***

***Deer      Park Enterprise, LLC***

----

**Financing      Arrangements**

----

**Off-Balance      Sheet Arrangements**

**Critical      Accounting Policies and Estimates**

----

**Related      Party Transactions**

|                      |   |                                Three Months Ended  |                                   Nine Months Ended   |
|---------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|                      |   |                                September 30,            |                                    September 30, |
|                      |   |                                                                                                                               | 2006                                                                                                                                            |   |   | 2005 |   |   | 2006 |   |   | 2005 |   |
| Fee:                      |   |                                                                                                                               |                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |
| Management                |   | $                                                                                                                                  | 104                                                                                                                                             |   | $ | 78 |   | $ | 260 |   | $ | 234 |   |
| Leasing                   |   |                                                                                                                               | 167                                                                                                                                             |   |   | (2 | ) |   | 196 |   |   | 2 |   |
| Marketing                 |   |                                                                                                                               | 22                                                                                                                                              |   |   | 16 |   |   | 66 |   |   | 48 |   |
| Development               |   |                                                                                                                               | 151                                                                                                                                             |   |   | --- |   |   | 313 |   |   | --- |   |
| Total                Fees |   | $                                                                                                                                  | 444                                                                                                                                             |   | $ | 92 |   | $ | 835 |   | $ | 284 |   |

**New      Accounting Pronouncements**

----

**Funds      From Operations**

| §   | FFO                does not reflect our cash expenditures, or future requirements, for                capital expenditures or contractual                commitments; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | FFO                does not reflect changes in, or cash requirements for, our working                capital                needs; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

| §   | Although                depreciation and amortization are non-cash charges, the assets being                depreciated and amortized will often have to be replaced in the future,                and FFO does not reflect any cash requirements for such                replacements; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | FFO                does not reflect the impact of earnings or charges resulting from                matters                which may not be indicative of our ongoing operations;                and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Other                companies in our industry may calculate FFO differently than we do,                limiting its usefulness as a comparative                measure. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                     |                                                                     |                                                                                                                                                 |   |                                                                                                                                                                                   |
|------------------------------------------|--------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                     |                                                                     |                                Three months ended                         |   |                          Nine                months ended |
|                                     |                                                                     |                                    September 30, |   |                                        September 30,           |
|                                     |                                                                     |                                 2006                                 |   |                      2005                                                     |   |               2006 |   |                                       2005 |
| **FUNDS                FROM OPERATIONS** |                                                                     |                                                                                                                                                 |   |                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     | Net                income                                                |                                                                                                                                                 | $      | 8,605                                                                                                                                                                                  |   |   | $ | 5,356 |   |   | $ | 33,419 |   |   | $ | 6,034 |   |
|                                     | Adjusted                for:                                             |                                                                                                                                                 |   |                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     | Minority                interest adjustment - consolidated joint venture | ---                                                                                                                                                  |   |                                                                                                                                                                                   |   | (441 | ) |   |   | --- |   |   |   | (549 | ) |
|                                     | Depreciation                and amortization                             |                                                                                                                                                 |   |                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     | attributable                to discontinued operations                   |                                                                                                                                                 |   | ---                                                                                                                                                                                    |   |   |   | 185 |   |   |   | 116 |   |   |   | 539 |   |
|                                     | Depreciation                and amortization uniquely significant to     |                                                                                                                                                 |   |                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     | real                estate - consolidated                                |                                                                                                                                                 |   | 13,512                                                                                                                                                                                 |   |   |   | 11,856 |   |   |   | 42,923 |   |   |   | 35,736 |   |
|                                     | Depreciation                and amortization uniquely significant to     |                                                                                                                                                 |   |                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     | real                estate - unconsolidated joint ventures               |                                                                                                                                                 |   | 444                                                                                                                                                                                    |   |   |   | 375 |   |   |   | 1,202 |   |   |   | 1,114 |   |
|                                     | (Gain)                loss on sale of real estate                        |                                                                                                                                                 |   | ---                                                                                                                                                                                    |   |   |   | --- |   |   |   | (13,833 | ) |   |   | 4,690 |   |
|                                     | **Funds                from operations (FFO)****(1)**                    |                                                                                                                                                 |   | 22,561                                                                                                                                                                                 |   |   |   | 17,331 |   |   |   | 63,827 |   |   |   | 47,564 |   |
|                                     | Preferred                unit distributions                              |                                                                                                                                                 |   | (1,406                                                                                                                                                                                 | ) |   |   | --- |   |   |   | (4,027 | ) |   |   | --- |   |
|                                     | **Funds                from operations available to common**             |                                                                                                                                                 |   |                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     | **unitholders**                                                          |                                                                                                                                                 | $      | 21,155                                                                                                                                                                                 |   |   | $ | 17,331 |   |   | $ | 59,800 |   |   | $ | 47,564 |   |
|                                     | **Weighted                average units outstanding****(2)**             |                                                                                                                                                 |   | 18,525                                                                                                                                                                                 |   |   |   | 17,357 |   |   |   | 18,495 |   |   |   | 16,986 |   |

| (1)   | The                three months ended September 30, 2006 includes gains on sales of                outparcels of land of $177. The nine months ended September 30, 2006                and                2005 includes gains on sales of outparcels of land of $402 and $127,                respectively. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Assumes                unit options are converted to common                units. |
|-----------------|-----------------------------------------------------------------------------------|

**Economic      Conditions and Outlook**

----

**Item      3. Quantitative and Qualitative Disclosures about Market      Risk**

**Market      Risk**

----

|  **Financial                Instrument Type**       |  Notional                Value |  Rate |  Maturity            |   |  Fair                Value |   |
|----------------------------------------------------------|-------------------------------------|------------|---------------------------|--------|---------------------------------|--------|
| **TANGER                PROPERTIES LIMITED PARTNERSHIP** |                                |       |                      |   |
| US                Treasury Lock                          | $100,000,000                        | 4.526%     | July                2008  | $      | 254,000               |   |
| US                Treasury Lock                          | $100,000,000                        | 4.715%     | July                2008  | $      | (917,000              | )      |
|                                                     |                                |       |                      |   |                            |   |
| **TWMB,                ASSOCIATES, LLC**                 |                                |       |                      |   |                            |   |
| LIBOR                Interest Rate Swap                  | $35,000,000                         | 4.59%      | March                2010 | $      | 389,000               |   |

**Item      4. Controls and Procedures**

----

**PART      II. OTHER INFORMATION**

**Item      1. Legal Proceedings**

**Item      1A. Risk Factors**

**Item      6.**
**Exhibits      **

| 10.9 | Amended                and Restated Employment Agreement for Lisa J. Morrison dated May                9, 2006.                (Incorporated                by reference to the exhibits of the Registrant’s Quarterly Report on                Form                10-Q for the quarter ended March 31, 2006.) |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1 | Principal                Executive Officer Certification Pursuant to 18 U.S.C. Section                1350,as                Adopted Pursuant to Section 302 of the Sarbanes - Oxley Act of                2002.                                                                                                      |
| 31.2 | Principal                Financial Officer Certification Pursuant to 18 U.S.C. Section                1350,as                Adopted Pursuant to Section 302 of the Sarbanes - Oxley Act of                2002.                                                                                                      |
| 32.1 | Principal                Executive Officer Certification Pursuant to 18 U.S.C. Section                1350,as                Adopted Pursuant to Section 906 of the Sarbanes - Oxley Act of                2002.                                                                                                      |
| 32.2 | Principal                Financial Officer Certification Pursuant to 18 U.S.C. Section                1350,as                Adopted Pursuant to Section 906 of the Sarbanes - Oxley Act of                2002.                                                                                                      |

----

----

| 10.9   | Amended                and Restated Employment Agreement for Lisa J. Morrison dated May                9, 2006.                (Incorporated by reference to the exhibits of the Registrant’s Quarterly                Report on Form 10-Q for the quarter ended March 31, 2006) |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.1   | Principal                Executive Officer Certification Pursuant to 18 U.S.C. Section                1350, as Adopted Pursuant to Section 302 of the Sarbanes - Oxley Act                of 2002. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.2   | Principal                Financial Officer Certification Pursuant to 18 U.S.C. Section                1350, as Adopted Pursuant to Section 302 of the Sarbanes - Oxley Act                of 2002. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1   | Principal                Executive Officer Certification Pursuant to 18 U.S.C. Section                1350, as Adopted Pursuant to Section 906 of the Sarbanes - Oxley Act                of 2002. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.2   | Principal                Financial Officer Certification Pursuant to 18 U.S.C. Section                1350, as Adopted Pursuant to Section 906 of the Sarbanes - Oxley Act                of 2002. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|