Can Tanger Factory Outlet Centers Bounce Back in 2021?
Real estate investment trust (REIT) Tanger Factory Outlet Centers (NYSE: SKT) lost roughly a third of its value in 2020. After that drubbing, switching the calendar to 2021 would seem like a welcome relief -- but the problems it faces won't get much better in the new year. Here's why Tanger's business will likely start to bounce back in 2021, but why it will still be a tough year all the same.
Tanger Factory Outlet Center entered 2020 facing headwinds. That's because it effectively owns a collection of outdoor malls. Indeed, the so-called "retail apocalypse" was already causing problems for the real estate investment trust's tenants before the year had gotten underway. Essentially, retailers -- especially those with leveraged balance sheets that had failed to keep up with customer trends, from fashion styles to internet shopping -- were struggling, closing stores, and even going bankrupt. However, until 2020, this was a slow-moving trend that Tanger was handling relatively well.
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Source Fool.com
