Forget Tanger Factory Outlet Centers, Simon Property Group Is a Better Mall REIT Stock

There's no way to soften the COVID-19 story for mall real estate investment trusts (REITs). It is bad. So bad that Tanger Factory Outlet Centers (NYSE: SKT) cut its dividend after building a track record of 27 consecutive annual increases -- and it is one of the stronger names in the space, financially speaking.

But if you are looking at Tanger, or any other mall REIT, then you should strongly consider industry giant Simon Property Group (NYSE: SPG) as an alternative. Here's why.

Although size isn't always the most important thing when it comes to investing, a larger size can confer benefits. In this case, Simon is easily the mall REIT industry's giant, with more than 200 enclosed malls and factory outlet centers. By comparison, Tanger owns just 39 factory outlet centers. (Other players, like Macerich and Penn REIT, have similarly small portfolios.)

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Source Fool.com