Greensboro-based real estate investment trust (REIT),
Tanger Factory Outlets Centers, Inc. (
, recently announced that it will open a new shopping center in
Texas in collaboration with
Simon Property Group, Inc. (
− a leading retail REIT. Both parties hold equal share in the
property, which is slated to open on October 19, 2012.
Simon Property is an Indiana-based company, with assets in almost
all retail distribution channels. The company acquires, owns and
leases a diverse portfolio of shopping malls in North America,
Europe, and Asia. The company has opened many high-quality outlets
in partnership with Tanger in the past.
Situated south of downtown Houston, the new shopping center spans
350,000 square foot. The outlet is well connected to the major
highways and roadways. The outlet will open after completion of the
first phase of development and will feature 80 renowned brands.
Some of them are -
Nike Inc. (
Skechers USA Inc. (
PVH Corp (
and Reebok of
Adidas AG (
The property is projected to expand by around 50,000 square foot
going forward. As a matter of fact, Tanger's management expect to
create around 900 full and part time job positions with the opening
of the outlet. This is an employment opportunity for those in the
Downtown Houston is a major retail hub in Texas. The growing
residential population in the city creates a high demand for the
day-to-day convenience goods and retail merchandise. The retail
sector of Houston, which accounts for 4.28% of Texas' gross
metropolitan product (GMP), generates around $16.47 billion,
according to sources.
Tanger, through its subsidiary, Tanger Properties Limited
Partnership, engages in acquiring, developing, owning, operating,
and managing factory outlet shopping centers. Currently, the
company operates and owns a portfolio of 39 upscale outlet shopping
centers across 25 states, spanning approximately 11.9 million
square feet and leased to over 2,500 stores that are operated by
more than 420 different branded companies.
The company is expected to release its third-quarter 2012 results
on October 30, 2012. The Zacks Consensus Estimate for third quarter
FFO (fund from operations) is currently pegged at 42 cents per
We currently have a long-term Neutral recommendation on the stock.
It also carries a short-term Zacks #3 Rank (Hold).
Note: FFO, a widely accepted and reported measure of the
performance of REITs is derived by adding depreciation,
amortization and other non-cash expenses to net income.
(ADDYY): ETF Research Reports
NIKE INC-B (NKE): Free Stock Analysis Report
PVH CORP (PVH): Free Stock Analysis Report
TANGER FACT OUT (SKT): Free Stock Analysis
SKECHERS USA-A (SKX): Free Stock Analysis
SIMON PROPERTY (SPG): Free Stock Analysis
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