Street Calls of the Week
Investing.com - Tanger Factory Outlet Centers (NYSE:SKT), a $3.95 billion market cap retail REIT with a GREAT financial health score according to InvestingPro, is acquiring Legends Outlets in Kansas City, Kansas, for $130 million, according to KeyBanc, which maintained its Sector Weight rating on the stock.
The acquisition is expected to generate approximately 8% unlevered return in its first year, with potential for higher yields in future years through remerchandising efforts and operational improvements at the center.
KeyBanc noted that the transaction aligns with Tanger’s overall strategy and appears to be an attractive addition to the company’s portfolio of outlet centers.
The firm also updated its estimates for Tanger following the acquisition announcement and to account for second-quarter 2025 earnings results.
KeyBanc cautioned that adding another large-format center with dining and entertainment components could introduce additional operating volatility and increase ongoing capital expenditure requirements over time.
In other recent news, Tanger Inc. reported its second-quarter 2025 earnings, which exceeded analysts’ expectations. The company achieved an earnings per share of $0.26, surpassing the forecasted $0.22, representing an 18.18% surprise. Additionally, Tanger reported revenue of $140.69 million, which also exceeded the projected $131.49 million. In a significant development, Tanger has acquired Legends Outlets in Kansas City for approximately $130 million. This acquisition expands Tanger’s presence into Kansas and was financed through available liquidity and a $115 million CMBS loan maturing in November 2027. The company also settled around $70 million of previously issued forward equity in connection with this acquisition. These developments highlight Tanger’s strategic growth and financial performance in recent times.
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