Tanger Issues Public Offering - Analyst Blog
June 30 2011 - 9:00AM
Zacks
Tanger Factory Outlet
Centers, Inc. (SKT) recently issued 4
million common shares to a sole underwriter in an underwritten
public offering. In a bid to cover over-allotments, the company
will provide a 30-day option to the underwriter for purchasing an
additional 600,000 shares.
Tanger intends to utilize the
proceeds generated from the offering to pay down debts under
its
senior unsecured lines of credit and for general corporate
purposes.
This public offering will enable
the company to attain financial flexibility and will expectedly
help it seize
investment opportunities and acquisitions, which in turn
will drive top-line growth.
During the first quarter of 2011,
FFO (funds from operations) stood at $29.6 million or 32 cents per
share compared to $29 million or 31 cents per share in the
year-earlier quarter. Fund from operations, a widely used metric to
gauge the performance of real estate investment trusts (REITs), is
obtained after adding depreciation and amortization and other
non-cash expenses to net income.
Headquartered in Greensboro, North
Carolina, Tanger is a publicly-traded REIT. The company, through
its subsidiary, Tanger Properties Limited Partnership, engages in
acquiring, developing, owning, operating and managing factory
outlet shopping centers.
The company operates and
owns a
portfolio of 35 upscale outlet shopping centers in 23 states,
totaling approximately 10.7 million square feet, leased to
over 2,200 stores that are operated by more than 370 different
branded companies.
Tanger currently retains a Zacks #3
Rank, which translates into a short-term Hold rating. We are also
maintaining our long-term Neutral recommendation on the stock. One
of its competitors, CBL & Associates Properties
Inc (CBL), currently retains a Zacks #3 Rank.
CBL&ASSOC PPTYS (CBL): Free Stock Analysis Report
TANGER FACT OUT (SKT): Free Stock Analysis Report
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