SKT Stock Recent News

Digital Realty has made excellent progress on its capital plan, taking the pressure off its balance sheet and stock price. Tanger Factory Outlet Centers keeps stores and coffers full.

Occupancy is back to pre-pandemic levels. The dividend is well covered.

Stag Industrial owns a solid portfolio and payout record. Tanger Factory Outlets' occupancy has eclipsed pre-pandemic levels.

Outlet center operator Tanger Outlets' occupancy rate is now back to pre-pandemic levels. Revenue and funds from operations are trending upward.

Tanger Factory Outlet (SKT) came out with quarterly funds from operations (FFO) of $0.47 per share, beating the Zacks Consensus Estimate of $0.45 per share. This compares to FFO of $0.45 per share a year ago.

Tanger Factory Outlet Centers has seen a share price gain of 56.21% over the last year, outperforming the S&P 500, and is a solid dividend payer. The company has been introducing new brands and alliances to increase diversity and has seen improved financial results, including a rise in occupancy rates and better rent spreads. Despite potential risks such as property-specific issues, tenant bankruptcies, and changes in the real estate market, Tanger is recommended for investors seeking a company with potential for future growth and dividend increase.

Tanger's dividend is well covered. Tanger has hiked its dividend in three out of the last four quarters.

Despite a REIT selloff, Tanger Factory Outlet has seen its stock price increase by 20% since the start of 2022. I don't see this outperformance as justified, especially relative to SPG which is superior in most metrics, yet trades at a discount to Tanger. I present my thesis and suggest a pairs trade.

Tanger is paying out a 4.2% dividend yield that has been raised by 19% over the last 12 months. SKT currently covers this payout by 188% to set the backdrop for further dividend raises. A lack of floating rate debt on its balance has hedged the investment story as interest rates and rent spreads surge.

While retail stocks have been lackluster performers this year, Tanger is making a strong recovery. The outlet-center operator is staging a steady comeback from its pandemic-era troubles, and its focus on offering consumers value should play well in a tough economic environment.