We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Tanger (SKT) Acquires Bridge Street Town Centre in Huntsville
Read MoreHide Full Article
Tanger Inc. (SKT - Free Report) announced the acquisition of the Bridge Street Town Centre in Huntsville, AL. This strategic move aligns with Tanger's external growth strategy, aiming to capitalize on the booming market of Huntsville, known for its rapid economic development and technological prowess.
Tanger acquired this 825,000-square-foot open-air lifestyle center for $193.5 million, utilizing cash on hand and available liquidity. The center, boasting more than 80 retail stores, restaurants and entertainment venues, serves as the dominant shopping destination in Huntsville, one of the fastest-growing markets in the United States. Management anticipates a first-year return in the mid-eight percent range, with prospects for additional growth over time.
Stephen Yalof, the president and CEO of Tanger, emphasized the company's commitment to value creation through strategic investments in dominant open-air retail destinations. The addition of Bridge Street Town Centre aligns seamlessly with Tanger's long-term strategy, leveraging its operational, leasing and marketing platforms. The move signifies Tanger's foray into open-air lifestyle centers, diversifying its portfolio.
Situated within Cummings Research Park, the second largest research park in the United States and close to Redstone Arsenal, the center benefits from its prime location in a technology and military hub. With a diverse tenant mix, including the market's only Apple Store and top-tier brands like Lululemon (LULU), Sephora and Athleta, Bridge Street Town Centre enjoys more than 93% occupancy. The center also offers a variety of dining options and entertainment venues, contributing to its appeal among residents and transient employees.
Huntsville is home to the U.S. Space and Rocket Center. It plays a crucial role as a key location for the U.S. military, space exploration technology, biotechnology, manufacturing and information technology sectors and is aptly called 'The Rocket City'. Home to more than 40 Fortune 500 companies, Huntsville boasts a resilient and dynamic economy, fostering new residential and office developments. Bridge Street Town Centre's location within this thriving city positions it as a key player in the local retail landscape.
Tanger funded the Huntsville acquisition, along with the recent addition of Asheville Outlets, totaling $263.5 million, through cash on hand and draws on its credit facility. Additionally, the company raised $57.5 million in the fourth quarter through its at-the-market (ATM) equity program, selling 2.3 million shares at an average price of $25.16 per share.
Tanger's acquisition of Bridge Street Town Centre marks a strategic move in the company's expansion strategy, further solidifying its position in the retail and outlet shopping industries. With a diversified portfolio of 39 properties, Tanger continues to innovate the retail experience for its shoppers while strategically navigating the dynamic landscape of growth markets like Huntsville. Investors can find confidence in Tanger's ability to identify and capitalize on lucrative opportunities, positioning the company for sustained success in the evolving retail sector.
So far in the quarter, shares of this Zacks Rank #1 (Strong Buy) company have risen 10.4%, outperforming its industry's upside of 8.9%.
The Zacks Consensus Estimate for Urban Edge Properties’ ongoing year’s FFO per share has been raised 1.7% over the past two months to $1.19.
The Zacks Consensus Estimate for Acadia Realty Trust’s current-year FFO per share has moved 2.3% northward over the past two months to $1.31.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Tanger (SKT) Acquires Bridge Street Town Centre in Huntsville
Tanger Inc. (SKT - Free Report) announced the acquisition of the Bridge Street Town Centre in Huntsville, AL. This strategic move aligns with Tanger's external growth strategy, aiming to capitalize on the booming market of Huntsville, known for its rapid economic development and technological prowess.
Tanger acquired this 825,000-square-foot open-air lifestyle center for $193.5 million, utilizing cash on hand and available liquidity. The center, boasting more than 80 retail stores, restaurants and entertainment venues, serves as the dominant shopping destination in Huntsville, one of the fastest-growing markets in the United States. Management anticipates a first-year return in the mid-eight percent range, with prospects for additional growth over time.
Stephen Yalof, the president and CEO of Tanger, emphasized the company's commitment to value creation through strategic investments in dominant open-air retail destinations. The addition of Bridge Street Town Centre aligns seamlessly with Tanger's long-term strategy, leveraging its operational, leasing and marketing platforms. The move signifies Tanger's foray into open-air lifestyle centers, diversifying its portfolio.
Situated within Cummings Research Park, the second largest research park in the United States and close to Redstone Arsenal, the center benefits from its prime location in a technology and military hub. With a diverse tenant mix, including the market's only Apple Store and top-tier brands like Lululemon (LULU), Sephora and Athleta, Bridge Street Town Centre enjoys more than 93% occupancy. The center also offers a variety of dining options and entertainment venues, contributing to its appeal among residents and transient employees.
Huntsville is home to the U.S. Space and Rocket Center. It plays a crucial role as a key location for the U.S. military, space exploration technology, biotechnology, manufacturing and information technology sectors and is aptly called 'The Rocket City'. Home to more than 40 Fortune 500 companies, Huntsville boasts a resilient and dynamic economy, fostering new residential and office developments. Bridge Street Town Centre's location within this thriving city positions it as a key player in the local retail landscape.
Tanger funded the Huntsville acquisition, along with the recent addition of Asheville Outlets, totaling $263.5 million, through cash on hand and draws on its credit facility. Additionally, the company raised $57.5 million in the fourth quarter through its at-the-market (ATM) equity program, selling 2.3 million shares at an average price of $25.16 per share.
Tanger's acquisition of Bridge Street Town Centre marks a strategic move in the company's expansion strategy, further solidifying its position in the retail and outlet shopping industries. With a diversified portfolio of 39 properties, Tanger continues to innovate the retail experience for its shoppers while strategically navigating the dynamic landscape of growth markets like Huntsville. Investors can find confidence in Tanger's ability to identify and capitalize on lucrative opportunities, positioning the company for sustained success in the evolving retail sector.
So far in the quarter, shares of this Zacks Rank #1 (Strong Buy) company have risen 10.4%, outperforming its industry's upside of 8.9%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks from the retail REIT sector are Urban Edge Properties (UE - Free Report) and Acadia Realty Trust (AKR - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Urban Edge Properties’ ongoing year’s FFO per share has been raised 1.7% over the past two months to $1.19.
The Zacks Consensus Estimate for Acadia Realty Trust’s current-year FFO per share has moved 2.3% northward over the past two months to $1.31.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.