Is Tanger Factory Outlet Centers a Buy?
When the U.S. economy was effectively shut down to slow the spread of COVID-19, retail landlords like Tanger Factory Outlet Centers (NYSE: SKT) were hit very hard. That's not unreasonable, since mall owners like this real estate investment trust (REIT) were already facing headwinds. At this point, Tanger has suspended its dividend. However, there is a mixture of pros and cons here that more adventurous investors may want to consider. When you add it all up, Tanger may not look as bad as you think.
The United States has an overabundance of retail, one of the key facts behind the so-called "retail apocalypse." There are other issues involved, including companies that over-leveraged and fell behind changing customer trends, but too much physical retail is a prime factor. So, even before COVID-19, stores were struggling to compete. When non-essential stores were shut and people were asked to stay home, weaker players simply crumbled.
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Source Fool.com
