Tanger Factory Outlet Centers Real Estate Investment Trust Company
The Tanger Factory Outlet Centers is a publicly traded Real Estate Investment Trust (REIT) company that specializes in developing, acquiring, owning, and operating outlet shopping centers. It was founded in 1981 and is headquartered in Greensboro, North Carolina. The company operates over 35 outlet shopping centers in 20 states, with more than 2,500 stores and over 450 million shoppers visiting annually.
History of Tanger Factory Outlet Centers
The company was founded by Stanley Tanger, who was a pioneer in the outlet shopping industry. He opened his first outlet center in Burlington, North Carolina, in 1981. He later expanded the company to other states such as Virginia, Tennessee, and Ohio. The company went public in 1993 and has been listed on the New York Stock Exchange since then.
Over the years, the company has grown through acquisitions and development of new properties. In 2015, the company opened its first international outlet center in Canada, and in 2018, it announced plans to expand into Mexico.
Tanger Factory Outlet Centers' Business Model
The company's business model is to acquire or develop outlet shopping centers in high-traffic areas and lease the space to retailers. The company's properties are usually located near major highways, making them easily accessible to shoppers. Tanger Factory Outlet Centers' tenants include some of the biggest names in retail such as Nike, Adidas, and Coach.
The company's revenue comes from the rent it charges tenants and the percentage of sales that tenants pay in addition to their rent. The company also generates revenue from management and leasing fees, as well as from the sale of properties.
Financial Performance of Tanger Factory Outlet Centers
Tanger Factory Outlet Centers has shown consistent growth in revenue and earnings since it went public. In 2019, the company reported total revenues of $508.5 million and net income of $72.8 million. The company's funds from operations (FFO), which is a key metric for REITs, was $2.20 per share in the same year.
The company's stock has been a solid performer, with a dividend yield of around 5% and a total return of around 8% over the past year.
Sustainability Efforts of Tanger Factory Outlet Centers
Tanger Factory Outlet Centers is committed to sustainability and reducing its environmental impact. The company has implemented several initiatives to reduce energy consumption, water usage, and waste generation in its properties.
The company has installed energy-efficient lighting and HVAC systems in its properties, which has resulted in significant energy savings. The company also uses low-flow plumbing fixtures and has implemented water conservation programs to reduce water usage.
The company has also implemented recycling programs and has partnered with retailers to reduce waste generation in its properties. The company's sustainability efforts have been recognized by several organizations, including the U.S. Environmental Protection Agency and the Global Real Estate Sustainability Benchmark.
Conclusion
Tanger Factory Outlet Centers is a leading player in the outlet shopping industry and has a solid business model that has resulted in consistent growth in revenue and earnings over the years. The company's commitment to sustainability is also commendable, and it has implemented several initiatives to reduce its environmental impact.
Investors looking for exposure to the retail real estate sector may find Tanger Factory Outlet Centers to be an attractive investment option, given its solid financial performance and commitment to sustainability.