Tanger (SKT) AI Stock Analysis

Compare

1,391 Followers

Top Page

Tanger

(NYSE:SKT)

Rating:69Neutral

Price Target:

$33.00

▲(12.63%Upside)

Tanger Factory Outlet Centers, Inc. demonstrates solid financial health with strong profitability and effective cash flow management. However, high leverage and potential overvaluation pose risks. The company's strategic growth initiatives and positive earnings call insights contribute positively to its outlook, though technical indicators suggest limited momentum. The new share repurchase plan adds a positive strategic dimension, supporting the overall score.

Positive Factors

Earnings Growth

The forecast for annual FFO growth is 6.5% over the years 2025, 2026, and 2027, indicating strong growth expectations.

Financial Guidance

The company introduced its 2025 guidance above the Street's expectations, indicating confidence in future performance.

Tenant Strategy

SKT has successfully lowered its exposure to weaker tenants, reducing potential risks.

Negative Factors

Debt Concerns

There is a need to examine potential bad debt related to Forever 21, indicating some areas of concern.

Occupancy Rates

SS sequential occupancy dipped -230bps which is about -100bps worse than SKT's historical average.

Potential Conflicts

Investors should be aware of potential conflicts of interest as Goldman Sachs does business with companies covered in its research reports.

Tanger (SKT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$3.29B

Dividend Yield3.84%

Average Volume (3M)1.09M

Price to Earnings (P/E)34.4

Beta (1Y)0.70

Revenue Growth12.38%

EPS Growth-6.36%

CountryUS

Employees372

SectorReal Estate

Sector Strength63

IndustryREIT - Retail

Share Statistics

EPS (TTM)0.17

Shares Outstanding113,173,610

10 Day Avg. Volume901,865

30 Day Avg. Volume1,089,454

Financial Highlights & Ratios

PEG Ratio-10.52

Price to Book (P/B)5.01

Price to Sales (P/S)0.00

P/FCF Ratio11.33

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$35.50

Price Target Upside21.16% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering7

Tanger Business Overview & Revenue Model

Company DescriptionTanger Inc. (NYSE: SKT) is a leading owner and operator of outlet and open-air retail shopping destinations, with over 43 years of expertise in the retail and outlet shopping industries. Tanger's portfolio of 38 outlet centers, one adjacent managed center and one open-air lifestyle center comprises over 15 million square feet well positioned across tourist destinations and vibrant markets in 20 U.S. states and Canada. A publicly traded REIT since 1993, Tanger continues to innovate the retail experience for its shoppers with over 3,000 stores operated by more than 700 different brand name companies.

How the Company Makes MoneyTanger Factory Outlet Centers, Inc. generates revenue primarily through leasing retail space to a diverse array of tenants, including brand-name and designer retailers. The company's revenue model is based on collecting rental income from these retail tenants, which typically consists of fixed minimum rents, percentage rents based on tenant sales, and various tenant reimbursements for property-level expenses such as maintenance, insurance, and real estate taxes. Additionally, Tanger may earn income from selling real estate assets or leasing space for short-term events and pop-up shops. The company's ability to attract high-quality tenants, maintain high occupancy rates, and strategically expand its portfolio contributes significantly to its earnings. Furthermore, Tanger's partnerships with well-known retail brands and its reputation for providing premium shopping experiences at competitive prices are crucial factors in maintaining its revenue streams.

Tanger Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q1-2025)

% Change Since: -7.01%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted Tanger's robust financial performance with increased core FFO, improved same-center NOI, and strategic acquisitions. However, challenges such as higher expenses, a non-cash impairment charge, and occupancy declines were noted. The overall sentiment is cautiously optimistic with a focus on strategic growth amidst some uncertainties.

Q1-2025 Updates

Positive Updates

Core FFO Growth

Core FFO increased to $0.53 per share, compared to $0.52 per share in the first quarter of the prior year.

Same-Center NOI Increase

Same-center NOI increased by 2.3% for the quarter, driven by higher rental revenues and strong retailer demand.

Strong Leasing Activity

Executed 2.5 million square feet over the trailing 12-month period, representing nearly 550 transactions with 13 consecutive quarters of positive rent spreads.

Occupancy and Portfolio Strategy

Ended the quarter with occupancy at 95.8%, reflecting strategic re-merchandising and expansion into new categories.

Acquisition and Portfolio Improvement

Acquired Pinecrest in Cleveland for $167 million, using cash on hand and line of credit.

Dividend Increase

Board of Directors approved a 6.4% increase in the dividend from $1.10 to $1.17 per share on an annualized basis.

Negative Updates

Higher Snow Expenses

First quarter same-center NOI growth was impacted by higher snow expenses this year.

Non-Cash Impairment Charge

Recognized a non-cash impairment charge of $4.2 million related to the sale of a non-core center in Howell, Michigan.

Seasonal Occupancy Decline

Occupancy reflected an anticipated seasonal decline and timing between old tenants leaving and new tenants taking possession.

Challenges in Re-Merchandising

Re-merchandising strategy led to temporary lower occupancy rates, although positioned for future growth.

Impact of Tariff Uncertainty

Concerns were raised about potential impacts of tariff uncertainty on foot traffic and consumer confidence.

Company Guidance

During Tanger, Inc.'s First Quarter 2025 Conference Call, the company reaffirmed its full-year guidance, projecting same-center NOI growth in the range of 2% to 4% and core FFO of $2.22 to $2.30 per share, reflecting a growth of 4% to 8%. The first-quarter core FFO increased to $0.53 per share, with a 2.3% rise in same-center NOI, despite challenges like higher snow expenses. The company reported strong leasing activity, executing 2.5 million square feet of leases over the trailing 12 months. Tanger's occupancy stood at 95.8%, reflecting strategic re-merchandising efforts. The company also highlighted continued expansion, including the acquisition of Pinecrest for $167 million. With a robust balance sheet, Tanger remains confident in leveraging its assets to drive growth.

Tanger Financial Statement Overview

Summary

Tanger demonstrates solid financial health with strong profitability and efficient cash flow management. The company has shown positive revenue and cash flow growth trends, although it maintains a high level of debt. The balance between profitability and leverage is crucial for future stability.

Income Statement

Positive

Tanger's income statement shows a solid performance with a gross profit margin of 62.93% and a net profit margin of 17.72% for TTM, indicating strong profitability. The revenue growth rate has been positive, with a TTM increase of approximately 2.28% over the previous year. The EBIT and EBITDA margins are also robust at 41.99% and 68.57% respectively, highlighting effective cost management and operational efficiency. However, the gross profit margin has slightly declined from the previous year, which could be an area to monitor.

Balance Sheet

Positive

The balance sheet reveals a high debt-to-equity ratio of 4.07, suggesting significant leverage and potential risk if interest rates rise. However, the return on equity is a healthy 14.45% for TTM, indicating efficient use of equity to generate profits. The equity ratio is moderate at 26.64%, reflecting a balanced approach to financing between debt and equity. Overall, while the company is leveraged, it is managing to generate good returns on equity.

Cash Flow

Very Positive

Tanger's cash flow position is strong, with a free cash flow growth rate of 14.21% TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is high at 2.83, showcasing the company's ability to convert its earnings into cash efficiently. The free cash flow to net income ratio is also favorable at 3.12, underscoring robust cash flow relative to net earnings. These metrics highlight strong cash flow management, supporting ongoing operations and potential debt reduction.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
538.05M	526.06M	464.41M	442.61M	426.52M	389.99M
	Gross Profit
338.80M	367.33M	318.86M	298.68M	285.79M	252.86M
	EBIT
225.99M	150.62M	133.84M	129.86M	117.27M	90.03M
	EBITDA
369.03M	289.31M	242.73M	241.77M	227.28M	207.17M
	Net Income Common Stockholders
95.38M	98.59M	99.15M	38.03M	-51.06M	-101.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.16M	46.99M	21.96M	264.57M	161.25M	84.83M
	Total Assets
2.48B	2.38B	2.32B	2.22B	2.16B	2.19B
	Total Debt
2.69B	1.51B	1.53B	1.52B	1.49B	1.66B
	Net Debt
2.68B	1.46B	1.51B	1.30B	1.32B	1.57B
	Total Liabilities
1.82B	1.70B	1.73B	1.70B	1.66B	1.83B
	Stockholders Equity
660.01M	652.37M	566.78M	491.64M	477.93M	341.39M
Cash Flow		Free Cash Flow
297.72M	260.68M	229.61M	166.60M	171.80M	136.74M
	Operating Cash Flow
270.03M	260.68M	229.61M	213.96M	217.72M	164.75M
	Investing Cash Flow
-326.48M	-178.01M	-409.56M	-98.82M	-22.74M	-18.77M
	Financing Cash Flow
58.70M	-48.34M	-19.28M	-64.16M	-118.38M	-77.59M

Tanger Technical Analysis

Technical Analysis Sentiment

Negative

Last Price29.30

Price Trends

50DMA

30.91

Negative

100DMA

32.07

Negative

200DMA

32.45

Negative

Market Momentum

MACD

-0.45

Positive

RSI

42.69

Neutral

STOCH

34.35

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKT, the sentiment is Negative. The current price of 29.3 is below the 20-day moving average (MA) of 30.05, below the 50-day MA of 30.91, and below the 200-day MA of 32.45, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 42.69 is Neutral, neither overbought nor oversold. The STOCH value of 34.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SKT.

Tanger Risk Analysis

Tanger disclosed 35 risk factors in its most recent earnings report. Tanger reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 2 New Risks

Use of artificial intelligence presents risks and challenges that could impact our business. Q4, 2024

The U.S. federal income tax treatment of the cash that we might receive from cash settlement of the forward sale agreement is unclear and could jeopardize our ability to meet the REIT qualification requirements. Q4, 2024

Tanger Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PECO	73 Outperform	$4.98B	64.27	3.09%	3.38%	9.27%	19.51%
IVT	72 Outperform	$2.17B	123.57	1.07%	3.27%	7.45%	119.81%
SKT	69 Neutral	$3.29B	34.44	15.89%	3.84%	12.38%	-6.36%
KRG	68 Neutral	$4.87B	359.58	0.81%	4.74%	4.37%	-75.82%
AKR	64 Neutral	$2.56B	116.36	0.92%	3.94%	2.62%	84.20%
Sector *	61 Neutral	$2.82B	10.84	0.42%	8439.00%	5.74%	-20.95%
MAC	58 Neutral	$4.17B	―	-4.79%	4.30%	9.58%	-3.85%

* Real Estate Sector Average

Performance Comparison

SKT

Tanger

29.30

3.16

12.09%

MAC

Macerich

15.79

1.21

8.30%

AKR

Acadia Realty

19.22

2.49

14.88%

KRG

Kite Realty Group

22.04

0.79

3.72%

IVT

InvenTrust Properties

27.83

3.65

15.10%

PECO

Phillips Edison & Company

35.61

4.97

16.22%

Tanger Corporate Events

Stock BuybackBusiness Operations and Strategy

Tanger Announces New $200 Million Share Repurchase Plan

Positive

May 12, 2025

On May 9, 2025, Tanger‘s Board of Directors approved a new share repurchase program, increasing the authorization to $200 million, replacing the previous $100 million plan set to expire on May 31, 2025. This strategic move allows flexibility in managing the company’s capital structure and potentially enhances shareholder value, although it does not obligate the company to buy back a specific amount of shares and can be adjusted or terminated as needed.

The most recent analyst rating on (SKT) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on Tanger stock, see the SKT Stock Forecast page.

Business Operations and StrategyFinancial Disclosures

Tanger Reports Strong Q1 2025 Financial Results

Positive

Apr 30, 2025

On April 30, 2025, Tanger reported its financial results for the first quarter of 2025, highlighting a strong performance with a net income of $0.17 per share and robust tenant demand. The company continues to execute its remerchandising strategy, maintaining a strong, low-leveraged balance sheet, and achieving positive leasing activity with a 14.1% increase in blended average rental rates.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.