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Zacks Value Investor Highlights: Tanger Factory Outlet, Simon Property Group and Macerich
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For Immediate Release
Chicago, IL – April 3, 2023 – Zacks Value Investor is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2072731/is-it-time-to-buy-the-mall-reits-again
Is It Time to Buy the Mall REITs Again?
Welcome to Episode #323 of the Value Investor Podcast.
(1:00) - Can You Invest Into Mall Real Estate?
(6:45) - Do These Top REITs Fit Into Your Portfolio Right Now?
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Recently, she talked about the big retailers and whether or not any of them were still values after the pandemic boosted many of them to new highs.
The mall REITs were initially sold off when the pandemic hit, as malls and stores closed. The mall REITs halted their dividends and cut costs to survive.
But in 2023, with it being the third year after the start of the pandemic, the malls have reopened and shoppers are back to dining, shopping and going to entertainment venues such as movie theaters and casinos.
Not Your Parents Mall
Even before the pandemic had hit, the shopping malls REITs were already busy transforming their businesses. The “old” suburban indoor mall with the food court and same old retailers was out. Mini urban town centers, some with apartments or condos and farmer’s markets, became the “new” mall.
What is happening with the shopping malls now, after the reopen?
The Retail REIT industry is ranked 75 out of 249 industries on the Zacks Industry Rank. That puts it in the top 30% of all industries.
Tanger Factory Outlet Centers is a REIT which operates open air outlet centers in 20 states and Canada. In 2022, it started construction on a new center in Nashville which should open in Sep 2023.
Shares of Tanger Factory Outlet Centers are up 4.5% year-to-date but over the last 5-years they have underperformed the S&P 500, falling 14.8% while the S&P 500 is up 52% during that same time.
Earnings are expected to rise just $0.01 in 2023 compared to 2022.
However, Tanger Factory Outlet Centers is trading with a forward P/E of just 10.3. It also is paying a dividend, currently yielding 4.6%.
Should Tanger Factory Outlet Centers be on your short list?
Simon Property Group is a large cap REIT which owns premier shopping, dining and entertainment centers in North America, Europe and Asia. In Oct 2022, Simon Property Group opened its 10th premium outlet center in Japan.
Shares of Simon Property Group are down 8.4% year-to-date. Earnings are expected to be up in 2023, but just 1.4% to $12.04 from $11.87 last year.
Simon Property Group is cheap, with a forward P/E of 8.7. It also raised its quarterly dividend for Q1 by 9.1% and now pays a juicy yield of 6.9%.
Is Simon Property Group a hidden value stock in 2023?
Macerich is a small-cap REIT which owns retail and mixed-use developments in several US markets including California, Pacific Northwest, Phoenix/Scottsdale, and Metro New York down to the DC Corridor. It operates 44 regional town centers.
Macerich finished 2022 with the strongest annual leasing volumes for the company in well over a decade.
Yet analysts are bearish about 2023. 3 estimates have been cut in the last 30 days. Earnings are expected to fall 7.7% in 2023.
Macerich shares reflect the bearishness. They are down 9.5% in 2023 and 36% over the last year. But Macerich is also dirt-cheap. It trades with a forward P/E of just 5.4.
It’s also paying a dividend, currently yielding 7%.
Is Macerich a value or a trap?
What Else do Buy and Hold Investors Need to Know About Mall REITs?
Listen to this week’s podcast to find out.
Why Haven’t You Looked at Zacks' Top Stocks?
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Value Investor Highlights: Tanger Factory Outlet, Simon Property Group and Macerich
For Immediate Release
Chicago, IL – April 3, 2023 – Zacks Value Investor is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2072731/is-it-time-to-buy-the-mall-reits-again
Is It Time to Buy the Mall REITs Again?
Welcome to Episode #323 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Recently, she talked about the big retailers and whether or not any of them were still values after the pandemic boosted many of them to new highs.
The mall REITs were initially sold off when the pandemic hit, as malls and stores closed. The mall REITs halted their dividends and cut costs to survive.
But in 2023, with it being the third year after the start of the pandemic, the malls have reopened and shoppers are back to dining, shopping and going to entertainment venues such as movie theaters and casinos.
Not Your Parents Mall
Even before the pandemic had hit, the shopping malls REITs were already busy transforming their businesses. The “old” suburban indoor mall with the food court and same old retailers was out. Mini urban town centers, some with apartments or condos and farmer’s markets, became the “new” mall.
What is happening with the shopping malls now, after the reopen?
The Retail REIT industry is ranked 75 out of 249 industries on the Zacks Industry Rank. That puts it in the top 30% of all industries.
3 Mall REITs: Values or Traps?
1. Tanger Factory Outlet Centers (SKT - Free Report)
Tanger Factory Outlet Centers is a REIT which operates open air outlet centers in 20 states and Canada. In 2022, it started construction on a new center in Nashville which should open in Sep 2023.
Shares of Tanger Factory Outlet Centers are up 4.5% year-to-date but over the last 5-years they have underperformed the S&P 500, falling 14.8% while the S&P 500 is up 52% during that same time.
Earnings are expected to rise just $0.01 in 2023 compared to 2022.
However, Tanger Factory Outlet Centers is trading with a forward P/E of just 10.3. It also is paying a dividend, currently yielding 4.6%.
Should Tanger Factory Outlet Centers be on your short list?
2. Simon Property Group (SPG - Free Report)
Simon Property Group is a large cap REIT which owns premier shopping, dining and entertainment centers in North America, Europe and Asia. In Oct 2022, Simon Property Group opened its 10th premium outlet center in Japan.
Shares of Simon Property Group are down 8.4% year-to-date. Earnings are expected to be up in 2023, but just 1.4% to $12.04 from $11.87 last year.
Simon Property Group is cheap, with a forward P/E of 8.7. It also raised its quarterly dividend for Q1 by 9.1% and now pays a juicy yield of 6.9%.
Is Simon Property Group a hidden value stock in 2023?
3. Macerich Company (MAC - Free Report)
Macerich is a small-cap REIT which owns retail and mixed-use developments in several US markets including California, Pacific Northwest, Phoenix/Scottsdale, and Metro New York down to the DC Corridor. It operates 44 regional town centers.
Macerich finished 2022 with the strongest annual leasing volumes for the company in well over a decade.
Yet analysts are bearish about 2023. 3 estimates have been cut in the last 30 days. Earnings are expected to fall 7.7% in 2023.
Macerich shares reflect the bearishness. They are down 9.5% in 2023 and 36% over the last year. But Macerich is also dirt-cheap. It trades with a forward P/E of just 5.4.
It’s also paying a dividend, currently yielding 7%.
Is Macerich a value or a trap?
What Else do Buy and Hold Investors Need to Know About Mall REITs?
Listen to this week’s podcast to find out.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Follow us on Twitter: https://twitter.com/zacksresearch
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.