Tanger Factory Outlet Centers (SKT) announces $131 million asset sale.
Tanger Factory Outlet Centers, Inc. (SKT) announced today that it has sold four non-core outlet centers for net proceeds of $128.7 million. The company said that sales proceeds would be used to reduce borrowings under its revolving credit facility and create capacity for "opportunistically repurchasing its common shares."
The blended cap rate on the sale was 12.6% based on budgeted 2019 NOI, suggesting the growth prospects for these properties was limited. Assuming all sales proceeds are used to reduce debt, SKT said that it expects approximately $0.09 of earnings dilution (FFO/share) for 2019. The company also expects to record a $44 million gain on the 1Q sale but does not anticipate the need for a special dividend.