Greensboro-based real estate investment trust (REIT), Tanger Factory Outlets Centers, Inc. ( SKT - Snapshot Report ) , recently announced that it will open a new shopping center in Texas in collaboration with Simon Property Group, Inc. ( SPG - Analyst Report ) − a leading retail REIT. Both parties hold equal share in the property, which is slated to open on October 19, 2012.

Simon Property is an Indiana-based company, with assets in almost all retail distribution channels. The company acquires, owns and leases a diverse portfolio of shopping malls in North America, Europe, and Asia. The company has opened many high-quality outlets in partnership with Tanger in the past.

Situated south of downtown Houston, the new shopping center spans 350,000 square foot. The outlet is well connected to the major highways and roadways. The outlet will open after completion of the first phase of development and will feature 80 renowned brands. Some of them are – Nike Inc. ( NKE - Analyst Report ) , Skechers USA Inc. ( SKX - Analyst Report ) , IZOD of PVH Corp ( PVH - Snapshot Report ) and Reebok of Adidas AG ( ADDYY ) .

The property is projected to expand by around 50,000 square foot going forward. As a matter of fact, Tanger’s management expect to create around 900 full and part time job positions with the opening of the outlet. This is an employment opportunity for those in the locality.

Downtown Houston is a major retail hub in Texas. The growing residential population in the city creates a high demand for the day-to-day convenience goods and retail merchandise. The retail sector of Houston, which accounts for 4.28% of Texas’ gross metropolitan product (GMP), generates around $16.47 billion, according to sources.

Tanger, through its subsidiary, Tanger Properties Limited Partnership, engages in acquiring, developing, owning, operating, and managing factory outlet shopping centers. Currently, the company operates and owns a portfolio of 39 upscale outlet shopping centers across 25 states, spanning approximately 11.9 million square feet and leased to over 2,500 stores that are operated by more than 420 different branded companies.

The company is expected to release its third-quarter 2012 results on October 30, 2012. The Zacks Consensus Estimate for third quarter FFO (fund from operations) is currently pegged at 42 cents per share.

We currently have a long-term Neutral recommendation on the stock. It also carries a short-term Zacks #3 Rank (Hold).

Note: FFO, a widely accepted and reported measure of the performance of REITs is derived by adding depreciation, amortization and other non-cash expenses to net income.