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Tanger Remains A Beautiful SWAN


  • Although I consider REITs more “buy and hold” driven, it’s important to rebalance portfolios to take advantage of opportunistic mispricing, or, get rid of a few ugly ducklings.
  • "Department stores across the country account for more than 350 million square feet of mall space." Lauren Thomas.
  • Tanger has no department store exposure, access to capital is still a critical differentiator.
  • The selloff (valuation) is unwarranted as Tanger’s business model is perfectly suited for the new paradigm in which “department stores are under attack.
  • This idea was discussed in more depth with members of my private investing community, Rhino Real Estate Advisors. Get started today »

In case you missed it, I recently wrote an article summarizing my 2018 Top SWAN (stands for “sleep well at night”) picks - and the weighted average total return for the basket of REITs (through November 2018) is 10.6%. And in this article today, I will be making a strong case for why I still stand behind Tanger Outlets (NYSE:SKT).

It’s interesting to revisit this list of high conviction picks to assess the year-end results. As you can imagine, I’m very pleased with these picks, especially home runs like Omega Healthcare (OHI) +46.6% YTD and Store Capital (STOR) +19.6% YTD.

Although I consider REITs more “buy and hold” driven, it’s important to rebalance portfolios to take advantage of opportunistic mispricing, or, get rid of a few ugly ducklings.

Because of selective vetting, it’s rare that I would unload a SWAN, because, as a value investor, I am disciplined in my approach of surveying the list of opportunities. This typically involves considering the company’s history, its moat-worth attributes, and most importantly, how the company is able to maintain its long-term pricing power.

And I’m not surprised to see this collective basket of SWANs out-perform (+10.6% YTD), given the in-depth, almost microscopic, research that we undertake. (i.e. our portfolios returned around 5% on average).

Yet, there are always outliers to consider. I’m not referring to “something classified differently,” but rather, how Malcolm Gladwell uses the “outlier” term: “…an outlier is a truly exceptional individual who, in his or her field of expertise, is so superior that he defines his own category of success.”

Remember I said occasionally I have to “get rid of a few ugly ducklings?”

That’s true, but rarely I find one that eventually turns into a beautiful SWAN. At first, an “outlier” may appear to have little value, but eventually, competitive advantages are revealed - and Malcolm Gladwell’s “tallest

Brad Thomas is one of the most read authors on Seeking Alpha, and over the years, he has developed a trusted brand in the REIT sector. His articles generate significant traffic (around 500,000 views monthly) and he has thousands of satisfied customers who rely on his expertise.

Marketplace subscribers have access to a growing list of services, including weekly property sector updates and weekly recommendations. Also, we are now providing daily early morning REIT recaps, including breaking news across the entire REIT universe. Take charge!

This article was written by

Brad Thomas profile picture
Leader of iREIT on Alpha
The #1 Service For Safe and Reliable REIT Income

Brad Thomas is the CEO of Wide Moat Research ("WMR"), a subscription-based publisher of financial information, serving over 100,000 investors around the world. WMR has a team of experienced multi-disciplined analysts covering all dividend categories, including REITs, MLPs, BDCs, and traditional C-Corps.

The WMR brands include: (1) iREIT on Alpha (Seeking Alpha), and (2) The Dividend Kings (Seeking Alpha), and (3) Wide Moat Research. He is also the editor of The Forbes Real Estate Investor

Thomas has also been featured in Barron's, Forbes Magazine, Kiplinger’s, US News & World Report, Money, NPR, Institutional Investor, GlobeStreet, CNN, Newsmax, and Fox. 

He is the #1 contributing analyst on Seeking Alpha in 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2022 (based on page views) and has over 108,000 followers (on Seeking Alpha). Thomas is also the author of The Intelligent REIT Investor Guide (Wiley) and is writing a new book, REITs For Dummies. 

Thomas received a Bachelor of Science degree in Business/Economics from Presbyterian College and he is married with 5 wonderful kids. He has over 30 years of real estate investing experience and is one of the most prolific writers on Seeking Alpha. To learn more about Brad visit HERE.

Analyst’s Disclosure: I am/we are long OHI, SKT, O. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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