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No. of Recommendations: 7
Tanger Factory Outlet: Ignoring Problems Won't Fix Them


Tanger is now faced with the reality of several years of declining comps. The market is waiting for a plan.

The problem? There is no plan other than "this will pass." The company has not changed its pitch to investors in years. Stagnancy is never rewarded.

As a real estate class, outlets at their heart rely on retail apparel. Retail is evolving beyond needing a true outlet presence.

Consumers have caught on to "made for outlet" merchandising. In a world where retail store presence will shrink, outlets will be among the first to go.

I just do not see the value here personally. Investors should shop elsewhere in my view.

Tanger Factory Outlet Centers (SKT)… yay or nay? I’ve stayed out of this debate on Seeking Alpha up until this point. However, as I’ve gotten very deep in the weeds on REITs heading into my attendance at REITweek in less than two weeks, I figured it was worth my time to throw my thoughts out there as well. Contentious as the stock is, my hang-ups here are not financially driven. The balance sheet is fine: there are a lot of levers to pull if metrics continue to erode. My primary issues lie with the outlet center model and the apparent stagnancy of the management team when it comes to addressing the very real shifts in retail. While not out here setting low price targets or calling for dividend cuts, I do take a very skeptic take on overall corporate direction. With so many great opportunities out there in the REIT universe, it’s tough to get on board with a firm that doesn’t appear to be taking its recent issues seriously.

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