Please ensure Javascript is enabled for purposes of website accessibility

Tanger Factory Outlet Says Weekly Traffic Is at 90% of Year-Ago Levels

By Howard Smith – Updated Jun 16, 2020 at 11:11AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The owner of retail outlet shopping centers is seeing traffic approaching last year's level where in-store retail has been open for 30 days or more.

In a sign that consumers are coming back, Tanger Factory Outlet Centers (SKT 7.28%) said in a business update that 90% of its occupied stores are now open where in-store retail has been allowed for 30 days or more, and it is seeing weekly traffic at levels above 90% compared to a year ago. Today, the Department of Commerce also announced a 17.7% jump in retail sales in May -- another signal of recovery in retail.

Tanger is a real estate investment trust (REIT) that owns and operates 39 upscale retail outlet shopping centers in 20 states and Canada. Almost 60% of its square footage is in areas deemed by the company as tourism destinations. 

outdoor shopping center

Image source: Getty Images.

Tanger has been impacted by the COVID-19 pandemic as state and local governments have shut down non-essential businesses. It said in its first-quarter earnings report that it was suspending its dividend distributions to conserve cash, but that it intends to remain in compliance with REIT income distribution requirements. Tanger is unburdened by mortgages on 94% of its square footage. 

In the company's most recent business update, CEO Steven Tanger said, "we are encouraged to see retailers reopen their stores and pleased that traffic is returning to our centers." The company has been working to improve liquidity, and said it has repaid $100 million of outstanding balances on its lines of credit and currently has approximately $433 million of cash on hand, as well as $100 million of unused lines of credit. 

Top tenants, in terms of annual base rent, at Tanger outlet centers include Gap (GPS 9.22%), Ascena Retail (ASNA), and Calvin Klein owner PVH (PVH 6.33%).

Howard Smith has no position in any of the stocks mentioned. The Motley Fool recommends Tanger Factory Outlet Centers. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tanger Factory Outlet Centers, Inc. Stock Quote
Tanger Factory Outlet Centers, Inc.
SKT
$15.04 (7.28%) $1.02
The Gap, Inc. Stock Quote
The Gap, Inc.
GPS
$9.24 (9.22%) $0.78
PVH Corp. Stock Quote
PVH Corp.
PVH
$49.75 (6.33%) $2.96
Ascena Retail Group, Inc. Stock Quote
Ascena Retail Group, Inc.
ASNA

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
331%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.