Tanger Outlets announced on Monday that it had closed on the sale of four of its none-core outlet centers, including its location in Ocean City, Md.
Tanger’s Ocean City outlet, along with three other locations in Nags Head, North Carolina, Park City, Utah, and Williamsburg, Iowa, represent 6.8% of the Company’s consolidated portfolio square footage and approximately 5.1% of its forecasted 2019 portfolio net operating income. The sale of the four outlets generated gross proceeds of $130.5 million.
“By completing these asset sales, we are strengthening the overall quality, reducing the average age, and improving the longer-term growth profile of the portfolio,” said Steven B. Tanger, Chief Executive Officer. in a press release.
“We believe the benefits of these dispositions over time will more than offset the expected short-term earnings dilution, given that these assets are not expected to produce the long-term growth in cash flow that we anticipate from our core portfolio. Our dividend remains well-covered even with the sale of these assets.”
Tanger Factory Outlet Centers Inc. acquired the shopping center, which was once known as Ocean City Factory Outlets, in 2011. Located off Route 50 in West Ocean City, the shopping center features brand-name and designer retailers including Nike, Tommy Hilfiger, Coach and Under Armour outlet and factory stores.
The buyer of the Ocean City location was still unidentified as of April 2. The now-closest Tanger Outlets to Ocean City in Rehoboth Beach, De. was not sold.
Tanger’s stock price was down 2.96 percent to $20.35 per share in trading on Monday.