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===SKT Has Shown Growth During [[Subprime lending]] Crisis=== ===SKT Has Shown Growth During [[Subprime lending]] Crisis===
-REITs are required by by Federal Tax requirements to return 90% of their earnings to shareholders, making all companies operating as REITs extremely sensitive to changes in credit availability. http://hoovweb.hoovers.com/real-estate-investment-trusts-(reits)/--ID__160--/freeuk-ind-fr-profile-basic.xhtml Despite increased restrictions on lending, SKT has continued to develop new properties. During 2010, SKT opened a new outlet center in Melbane, North Carolina. During this time, they also disposed of their Commerce 1, Georgia location. They began the redevelopment of a 162,000 square foot area in the second quarter of 2010, with plans of completing a 176,000 square foot outlet center some time in the second quarter of 2011. SKT also has potential future development sites in League City, Texas; Scottsdate, Arizona; and West Phoenix, Arizona. Projects are primarily funded through unsecured lines of credit, collateralized construction loans, public debt, or equity offerings.+REITs are required by by Federal Tax requirements to return 90% of their earnings to shareholders, making all companies operating as REITs extremely sensitive to changes in credit availability. <ref>http://hoovweb.hoovers.com/real-estate-investment-trusts-(reits)/--ID__160--/freeuk-ind-fr-profile-basic.xhtml</ref>Despite increased restrictions on lending, SKT has continued to develop new properties. During 2010, SKT opened a new outlet center in Melbane, North Carolina. During this time, they also disposed of their Commerce 1, Georgia location. They began the redevelopment of a 162,000 square foot area in the second quarter of 2010, with plans of completing a 176,000 square foot outlet center some time in the second quarter of 2011. SKT also has potential future development sites in League City, Texas; Scottsdate, Arizona; and West Phoenix, Arizona. Projects are primarily funded through unsecured lines of credit, collateralized construction loans, public debt, or equity offerings.
==Competition== ==Competition==

Revision as of 17:17, April 29, 2011

Tanger Factory Outlet Centers, Inc., (SKT) along with its subsidiaries, is an owner and operator of factory outlet centers in the United States. The Company is a fully-integrated, self-administered and self-managed real estate investment trust (REIT) that focuses on developing, acquiring, owning, operating and managing factory outlet shopping centers.


Business Overview

Tanger Factory Outlet Centers, Inc.(SKT), founded in 1881 by Stanley K. Tanger, is an owner and operator of factory outlet centers in the United States. [1] The company is a real estate investment trust (REIT), which focuses on developing, acquiring, owning, operating and managing factory outlet shopping centers. Tanger Outlets currently has 34 locations in 22 states across the nation. These locations total a gross area of 10.3 million square feet, leased to over 2,100 stores that are operated by over 370 brand name companies. [2] Tanger Factory Outlet Centers, Inc.’s stock trades on the NYSE under the symbol SKT. Tanger leases their space to a mix of designer and brand name manufactures, providing patrons with the opportunity to purchase a wide variety of brand name products at substantial savings.


SKT's Outlet Center Characteristics

As of Febuary 1, 2011, SKT had over 360 well known designer or brand name concepts, including: Polo Ralph Lauren, Saks Fifth Avenue – Off Fifth, Calvin Klein, Ann Taylor, GAP, Banana Republic, Old Navy, Juicy, Kate Spade, Lucky Brand Jeans, Reebok, Tommy Hilfiger, Abercrombie & Fitch, Eddie Bauer, Coach Leatherware, Brooks Brothers, BCBG, Michael Kors, Nike and many others.

SKT’s typical tenants are large, national manufactures, so they experience low risk of material losses due to rent collections or lease defaults. The majority of outlet stores in Tanger Factory Outlet Centers are directly operated by the respective manufacturer leasing space from SKT.[3]


SKT's Top Ten Tenants

image:Picture 8.jpg

SKT's Property Portfolio

image:SKT locations.jpg

The Riverhead, New York property is the only property that comprises more than 10% of SKT’s gross revenues. No property comprises more than 10% of their consolidated total assets. In addition, no tenant accounts for more than 8.4% of SKT’s leaseable space.[4]

Trends and Forces

SKT Has Shown Growth During Subprime lending Crisis

REITs are required by by Federal Tax requirements to return 90% of their earnings to shareholders, making all companies operating as REITs extremely sensitive to changes in credit availability. [5]Despite increased restrictions on lending, SKT has continued to develop new properties. During 2010, SKT opened a new outlet center in Melbane, North Carolina. During this time, they also disposed of their Commerce 1, Georgia location. They began the redevelopment of a 162,000 square foot area in the second quarter of 2010, with plans of completing a 176,000 square foot outlet center some time in the second quarter of 2011. SKT also has potential future development sites in League City, Texas; Scottsdate, Arizona; and West Phoenix, Arizona. Projects are primarily funded through unsecured lines of credit, collateralized construction loans, public debt, or equity offerings.

Competition

SKT competes for customers with other outlet centers, shopping malls, and full and discount price retailers such as T.J.Maxx, Loehmann’s, and HomeGoods. In most cities, SKT competes only to a very limited extent with traditional shopping malls due to pressure from tenants. Most tenants want to avoid direct competition with their own specialty stores and major retailers that sell their products at full price, so most outlets are located over 10 miles away from the nearest major department store.

In addition to competing directly with retail centers, SKT also competes with other REIT firms.

image:Picture 9.jpg

Porters Five Forces Analysis


References

  1. http://www.tangeroutlet.com/company/history.aspx
  2. http://www.snl.com/irweblinkx/corporateprofile.aspx?IID=103061
  3. http://www.snl.com/irweblinkx/corporateprofile.aspx?IID=103061
  4. http://www.snl.com/irweblinkx/corporateprofile.aspx?IID=103061
  5. http://hoovweb.hoovers.com/real-estate-investment-trusts-(reits)/--ID__160--/freeuk-ind-fr-profile-basic.xhtml
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