Tanger: The 8.81% Yielding REIT Displays A Bearish Short-Term Outlook, But A Reversible One Nonetheless

About: Tanger Factory Outlet Centers, Inc. (SKT), Includes: SPG
by: Nikolaos Sismanis
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Nikolaos Sismanis
Long only, Growth, growth at reasonable price, long-term horizon

SKT shows bearish signs regarding its portfolio expansion and its rental income retention.

A potential expansion plan, similar to Simon's should secure a brighter future for the company.

The case for Tanger is reversible, but the recent price drop is justified. However, investors may find profitable opportunities at current prices.

My Thesis

Tanger's (NYSE:SKT) portfolio net operating income is on track to decline in 2019 as the nonstop streak of store closings adds vacancy. Management anticipates 225,000 square feet of stores to close