Juan C. Sanabria, an analyst from BMO Capital, maintained the Hold rating on Tanger (SKT – Research Report). The associated price target remains the same with $39.00.
Juan C. Sanabria has given his Hold rating due to a combination of factors influencing Tanger’s financial performance. The company’s first-quarter earnings for 2025 were aligned with expectations, showing a steady but not exceptional growth in same-store net operating income (SSNOI) of 2.3%. However, the sequential occupancy rate experienced a decline, which was slightly worse than the company’s historical averages, excluding the COVID period. This indicates some concerns about the company’s ability to maintain its occupancy levels.
Additionally, while leasing activities showed positive trends with increased square footage, the spreads have compressed, suggesting potential challenges in maintaining rental income growth. The re-merchandising efforts have shown some success, with sales productivity improving, but the overall financial guidance for 2025 remains below market expectations. The maintained guidance for funds from operations (FFO) per share is slightly below the consensus, reflecting cautious optimism but not enough to warrant a more favorable rating. These elements combined have led to the Hold rating, indicating a wait-and-see approach as the company navigates these mixed signals.
C. Sanabria covers the Real Estate sector, focusing on stocks such as Healthpeak Properties, Public Storage, and CareTrust REIT. According to TipRanks, C. Sanabria has an average return of 0.0% and a 45.08% success rate on recommended stocks.
In another report released on April 23, Scotiabank also maintained a Hold rating on the stock with a $33.00 price target.