Why Shares of Tanger Factory Outlet Centers Nose-Dived Early Thursday
Shares of Tanger Factory Outlet Centers (NYSE: SKT), a real estate investment trust (REIT), fell roughly 10% in early trading on Thursday. The drop coincided with a market swoon on economic concerns and broader declines within the mall REIT space. But Tanger's fall was quicker and steeper than its closest peers, and there's material information in that move for investors.
Tanger is unique among mall REITs in that it only owns factory outlets. It has been facing material pressure for several years because of the shift toward online shopping, which has been particularly hard on fashion retailers. That segment is sizable within Tanger's portfolio.
Facing vacancies, Tanger has long held that it just needs time to find new tenants. In a normal economic environment, that would likely be true. But these are not normal times, with the impact of COVID-19 already pushing a number of debt-heavy retailers into bankruptcy. Unfortunately, Tanger's ability to find new tenants in a timely manner is even more up in the air now than it was when the year started.
Source Fool.com
