SKT - Is Tanger Taking This Trend Too Far?
Tanger Factory Outlet Centers (NYSE: SKT) is starting to see business improve, along with its mall real estate investment trust (REIT) peers. That's very good news for investors, noting that it just announced a dividend increase, putting it on the dividend growth path again. But there's another business trend here that investors need to monitor, and it's subtle. Here's what you need to know.
The big saying in real estate is location, location, location, which is a very important thing. But part of the location equation is really property type. Think about putting an office complex in a small town that really needs more housing stock. In this situation, the office might sit half vacant even if it offers low lease rates. However, had an apartment complex been built, it would have been a better fit and likely seen high occupancy and strong rents. That's obviously a hypothetical example, but there are real-world implications here.
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Is Tanger Taking This Trend Too Far?