NEW YORK (TheStreet) -- An essential ingredient for great investing is to own stocks with limited risk and steady returns. But finding those that provide a balanced risk-and-return proposition are often considered "one-hit wonders" with no strong source of differentiation.
On occasion, companies are able to transcend from the mainstream performers and become highly differentiated leaders. In some cases, these rare leaders are able to sustain differentiation by providing a highly favorable risk-and-return model that is intelligently crafted to generate durable returns and sound risk controls.
A Premium REIT Brand
As Warren Buffett has said: "Your premium brand had better be delivering something special, or it's not going to get the business." Tanger Factory Outlets (SKT) is one such premium REIT brand that is delivering something very special for investors.Founded in 1981 (and public since 1993), Tanger is headquartered in Greensboro, North Carolina, and this well-balanced REIT operates and owns or has ownership interests in a portfolio of 39 outlet centers in 25 states coast-to-coast (and Canada), totaling 11.9 million square feet, leased to over 2,500 stores that are operated by more than 430 different brand name companies. The premium ingredients of the Tanger Factory Outlet brand are centered around the attractive supply-and-demand fundamentals of the retail outlet-based sector. This attraction to Tanger's exceptionally strong tenant base comprises some of the strongest retail ingredients in the retail sector, the majority of which are publicly held, high-credit retailers. Some of Tanger's core portfolio tenants include Gap, PVH, Dress Barn, Nike, Adidas, VF, Ann Taylor, Polo, Carter's and Hanes Brands. As a result of Tanger's exceptionally strong tenant demand, the premium REIT has also maintained a consistent occupancy level over time. Currently the "best in class" brand has an occupancy rate of 97% (as of the first quarter) and the steady trends have made the Tanger brand a popular "recession-resistant" choice for investors. As explained by Tanger CEO and President Steven B. Tanger: "In good times people love a bargain, and in tough times, people need a bargain." Because Tanger has limited direct competition in the outlet sector, the premium REIT brand has built a powerfully recognized advantage that has resulted in sharper differentiation. Since the company's founding over 32 years ago, Tanger's retail strategies have evolved into one of the strongest outlet brands in the U.S. (and Canada).
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV