Tanger Factory Outlet Has Hidden Problems | Is $SKT Stock A Sell? скачать в хорошем качестве

Tanger Factory Outlet Has Hidden Problems | Is $SKT Stock A Sell?

Should you invest in Tanger Factory Outlet (SKT) stock in 2023? I would sell this REIT. Amazon and TJ Maxx are posing big problems. Besides, Simon Property Group (SPG) is offered at a lower valuation at the moment. Please follow me on Twitter:   / askjussi   and subscribe to my YouTube channel. Tanger Factory Outlet (SKT) is the leading REIT that specializes in outlet centers. It is one of the favorite REITs of individual investors because it pays a high dividend yield, has an investment grade-rated balance sheet, and a strong track record. But I think that it offers poor risk-to-reward at this time because of 5 key reasons: Reason #1: Outlets are heavily exposed to the growth of Amazon and T.J. Maxx. That's because they are located in more remote locations, focus mainly on fashion, and their layouts are difficult to adapt for different uses. Reason #2: More than half of its leases will expire in the 3 years. This is happening just as we are entering a recession and the sales per square foot of its centers are already declining in real terms. Reason #3: Its credit rating is just above junk and it risks losing its investment grade rating if we go into a recession. This would cause its cost of capital to rise. Reason #4: The surge in interest rates could cause many of its highly leveraged retailers to default on their leases, and it will also make future development projects less lucrative. Reason #5: Tanger Factory Outlet is priced at a higher valuation than Simon Property Group (SPG), despite having a lower credit rating (BBB-) than Simon (A-) and owning lower-quality assets. Class A malls are better positioned because they are located in urban areas and their layouts are more flexible. I believe that Simon should trade at a higher valuation, but it isn't, so why invest in Tanger? Besides, Simon also pays a higher dividend yield at 6% vs. just 5% for Tanger. Keywords relevant to the video: Tanger Factory Outlet Centers Tanger REIT Tanger Outlets stock Tanger Outlets as an investment Tanger Outlets valuation Tanger Outlets dividend Mall REITs in 2023 Best REITs for 2023 My Top REITs to buy today REIT investment opportunities The risks of Tanger Should you sell Tanger Will Tanger lose its value The future of outlet centers Macerich Pennsylvania REIT CBL Federal Realty Trust Image sources: Tanger Factory Outlet Centers, RioCan, YCharts, Simon Property Group, Canvas Important Disclaimer: This video is impersonal and does not provide individualized advice or recommendations for any specific person. Viewers/readers should not make any investment decision without conducting their own due diligence and consulting their financial advisor about their specific situation. This video is for entertainment purposes only and you are responsible for your own investment decisions. The information is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. The opinions expressed are those of the publisher and are subject to change without notice. This YouTube channel is managed by Leonberg Research OÜ, a subsidiary of Leonberg Capital OÜ.