Zacks_Analysts' Blog : Tanger Issues Public Offering - Analyst Blog

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.