I opened a new position with the purchase of Tanger Factory Outlet Centers, Inc. (SKT)
126 shares @ $16.50 on 6/14/2019.
This increases my forward 12-month dividend income by $178.92 to a total of $8,788.40. I also updated my portfolio page to reflect the change.
This is my second buy lot of this company. I first made my first purchased on April 16. Since that time the stock price has decreased. I believed that the company was underpriced when I first purchased it, and now it is even more undervalued to my intrinsic value.
The company has been increasing its dividends for 26 constitutive years. They sport a 5-year and 10-year dividend growth rate of 9.5% and 6.4% respectively. Tanger most recent dividend increase was earlier this year of just 1.4%.
I do not see them increase its dividend more then 2-3% for the foreseeable future. The company is currently having issues with filling up vacancies spots as well as consumers are continue to move to e-commerce.
Currently, SKT has a dividend payout ratio of 63% based on projected AFFO of $2.24 for 2019.
I find SKT to be undervalued, and I recommend it as a BUY at this time. I have a fair value price at $26.35. This means that SKT is 62.5% Undervalued based on today’s price of $16.21 (6/30/2019).
What do you think about the company? Plan on owning it or already do? or why not?
Thanks for reading, and don’t forget to connect with me through Facebook and Twitter to see my latest buys.
Image by Sira Anamwong at FreeDigitalPhotos.net
Great pick up and think they are one of the higher quality real estate companies out there. We have quite a few Tanger outlets within 3 hours of us and will say – they are some of the more well-developed/maintained/higher traction outlet malls.
Also – their metrics look very, very good and did not realize that. I may have to look deeper to potentially add them to my portfolio, as well. Congrats.
Thanks! I have never been to one, but thanks for giving me your observations. I think this company is very undervalued based on the information I have. Take a look and let me know what you think of the company. Thanks for stopping by.
I recognize that a couple of financial bloggers who I‘m following started to initiate a position in SKT as of late (or at to their already existing positions).
I also still like SKT’s business model and think that outlet centers will have their place in an Amazon-dominated world.
Could you tell me your source for FFO/AFFO estimates?
Thanks in advance!
I agree with you. Outlet centers will still have a place. People love to go out and do something. They love to feel and touch what they are buying.
I use fastgraphs for FFO estimates. Thanks for reading and commenting David.