This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

A Rare REIT for the Ages

Stocks in this article: SKT

One of the strengths of the premium brand are tenant sales. Since 2000, Tanger's long-term tenant sales have grown from $281 per square foot to $371 per square foot (March 2012), a 32% increase in 12 years.

Another Tanger strength, also related to demand, is the long runway for external growth by development. The oulet sector is small with about 50 million square feet of space (compared with less than 50 million square feet of retail space in all of Chicago). Recently, Tanger completed new projects in Hilton Head, South Carolina ($43 million cost and 177,000 square feet) and Mebane, North Carolina ($64.9 million cost and 310,000 square feet).

Tanger also has projects under construction in Houston, a joint venture with Simon and in Glendale, Arizona. Also, Tanger has proposed new projects in Washington, D.C., and Phoenix.

Premium Brand Goes International

Tanger recently entered the new frontier in Canada where the premium outlet brand has closed on several strategic joint ventures (50-50) with RioCan. That new frontier promises to be provide Tanger with multiples of success as Canada is significantly under-retailed as compared with the U.S. (Canada has 16 retail square feet per person compared with 24.5 in the U.S.)

Tanger has closed on a development project in Cookstown (Innisfil, Ontario) and the REIT has announced several other pre-development projects in Cookstown and Kanata. The strength of Tanger's Canadian pipeline is strong as the premium brand has suggested growth of 10 to 12 new projects over the next five to seven years.

Intelligent Bears Risk for Profit

One of the most important attributes for Tanger investors are the premium ingredients that distinguish the remarkably consistent returns from other REITs. These key ingredients evolve around exceptional risk management fundamentals and conservative financial stewardship practices.

Tanger is investment-grade-rated (S&P BBB and Moody's Baa2) and the premium brand has sound leverage ratios (47% debt-to-total assets) and low (5%) secured-debt-to-total assets. In addition, Tanger maintains modest interest coverage (4.3 times) and the company has significant unused capacity on its lines of credit (121.1 million outstanding and 398.9 million unused capacity).

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs