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Tanger (SKT)
NYSE:SKT
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Tanger
(NYSE:SKT)
Select Model
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Rating:75Outperform
Price Target:
$36.00
▲(6.98% Upside)
Tanger's overall stock score reflects strong financial performance and positive earnings call sentiment. The company's robust cash flow and revenue growth are significant strengths, while high leverage and a high P/E ratio present potential risks. Positive technical indicators and raised guidance further support the stock's favorable outlook.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.
Occupancy Rates
High occupancy rates and favorable leasing spreads reflect strong tenant demand and effective property management, enhancing revenue stability.
Cash Flow Generation
Strong cash flow generation provides financial flexibility for growth investments and supports dividend sustainability.
Negative Factors
High Leverage
High leverage can increase financial risk, especially if interest rates rise, potentially impacting long-term financial stability.
Tenant Bankruptcies
Tenant bankruptcies can disrupt revenue streams and require costly retenanting efforts, affecting revenue stability.
Macroeconomic Uncertainties
Economic uncertainties can impact consumer spending and tenant performance, posing risks to revenue and occupancy rates.
Tanger (SKT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.81B
Dividend Yield3.37%
Average Volume (3M)813.88K
Price to Earnings (P/E)38.1
Beta (1Y)0.70
Revenue Growth10.59%
EPS Growth-1.83%
CountryUS
Employees372
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.26
Shares Outstanding113,174,000
10 Day Avg. Volume1,076,527
30 Day Avg. Volume813,877
Financial Highlights & Ratios
PEG Ratio-7.09
Price to Book (P/B)5.70
Price to Sales (P/S)7.07
P/FCF Ratio14.70
Enterprise Value/Market Cap1.34
Enterprise Value/Revenue9.31
Enterprise Value/Gross Profit13.40
Enterprise Value/Ebitda16.78
Forecast
1Y Price Target
$35.25Price Target Upside4.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
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 generates revenue primarily through leasing retail space to various brand-name and designer retailers within its outlet centers. The company earns rental income from both fixed and percentage leases, with the latter allowing them to receive a percentage of the sales made by tenants, which can significantly increase revenue during peak seasons. Additionally, Tanger benefits from ancillary income sources such as advertising, sponsorships, and promotional events held within its properties. The company also engages in strategic partnerships with retailers to enhance the shopping experience and drive foot traffic, ultimately contributing to its financial performance.
Tanger Earnings Call Summary
Earnings Call Date:Aug 04, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Positive
The earnings call highlighted solid financial performance with significant growth in FFO and occupancy rates, alongside successful strategic initiatives in marketing and leasing. However, challenges such as the impact of economic uncertainties and tenant bankruptcies were noted. Overall, the positive aspects of growth and strategic advancements outweigh the challenges faced.Q2-2025 Updates
Positive Updates
Record Core FFO Growth
Core FFO was $0.58 per share, a 9.4% increase over the prior year, driven by strong internal and external growth initiatives.
Increased Occupancy Rates
Occupancy increased sequentially to 96.6% with blended leasing spreads of 12% over the trailing 12 months.
Rise in Tenant Sales
Tenant sales increased by 6.2% to $465 per square foot on a trailing 12-month basis, with higher traffic compared to last year.
Expansion of Loyalty Program
Participation in TangerClub, the proprietary loyalty program, continues to expand, driving improvements in traffic and sales.
Strong Balance Sheet and Liquidity
The company maintains low leverage with a net debt to adjusted EBITDA of 5x and total liquidity of $614 million.
Raised Full Year Guidance
Full year guidance for Core FFO per share was raised to $2.24 to $2.31, representing growth of 5.2% to 8.5%.
Strategic Leasing and Marketing Initiatives
Successful Summer of Savings and early back-to-school campaigns helped drive traffic and engagement.
Negative Updates
Impact of Tariffs and Macroeconomic Uncertainties
Persistent inflation and shifting consumer sentiment due to tariffs and economic uncertainties are affecting the retail environment.
Forever 21 Bankruptcy
The bankruptcy of Forever 21 led to retenanting challenges, although the company has leased out five of the locations.
Higher Temporary Tenancy
Temporary tenancy rates are higher than historical norms, which could impact long-term revenue stability.
Uncertain Macroeconomic Environment
The company remains cautious about the economic environment, especially concerning potential impacts on same-store NOI.
Company Guidance
During Tanger Inc.'s Second Quarter 2025 Conference Call, the company provided an optimistic outlook, highlighting strong operational metrics and adjusted guidance. Key performance indicators included a 9.4% year-over-year increase in Core FFO to $0.58 per share and a robust same-center NOI growth of 5.3%. The occupancy rate improved sequentially to 96.6%, with blended leasing spreads achieving a 12% increase over the trailing 12 months. Tenant sales per square foot rose by 6.2% to $465, and foot traffic increased compared to the previous year. Tanger raised its full-year guidance, now expecting Core FFO per share to be between $2.24 and $2.31, reflecting growth of 5.2% to 8.5%, and lifted same-center NOI growth projections to 2.5% to 4%. The company emphasized the effectiveness of its merchandising and marketing strategies in attracting a younger demographic while maintaining its value-seeking shopper base. Additionally, Tanger highlighted its strong balance sheet, with net debt to adjusted EBITDA at 5x, and a liquidity position of approximately $614 million. The company remains focused on both internal and external growth opportunities while leveraging AI technology and digital marketing to enhance customer engagement.Tanger Financial Statement Overview
Summary
Tanger exhibits 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 will be crucial for future stability, particularly in the face of potential economic fluctuations.Income Statement
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.75
Positive
Balance Sheet
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.65
Positive
Cash Flow
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.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 549.79M | 526.06M | 464.41M | 442.61M | 426.52M | 389.99M |
| Gross Profit | 381.88M | 367.33M | 318.86M | 298.68M | 285.79M | 252.86M |
| EBITDA | 304.81M | 302.09M | 242.73M | 241.77M | 227.28M | 207.17M |
| Net Income | 100.63M | 98.59M | 99.15M | 38.03M | -51.06M | -101.47M |
Balance Sheet | ||||||
| Total Assets | 2.45B | 2.38B | 2.32B | 2.22B | 2.16B | 2.19B |
| Cash, Cash Equivalents and Short-Term Investments | 9.74M | 46.99M | 21.96M | 264.57M | 161.25M | 84.83M |
| Total Debt | 1.61B | 1.51B | 1.53B | 1.52B | 1.49B | 1.66B |
| Total Liabilities | 1.79B | 1.70B | 1.73B | 1.70B | 1.66B | 1.83B |
| Stockholders Equity | 635.17M | 652.37M | 566.78M | 491.64M | 477.93M | 341.39M |
Cash Flow | ||||||
| Free Cash Flow | 332.48M | 253.07M | 229.61M | 166.60M | 171.80M | 136.74M |
| Operating Cash Flow | 278.64M | 260.68M | 229.61M | 213.96M | 217.72M | 164.75M |
| Investing Cash Flow | -314.36M | -178.01M | -409.56M | -98.82M | -22.74M | -18.77M |
| Financing Cash Flow | 36.80M | -48.34M | -19.28M | -64.16M | -118.38M | -77.59M |
Tanger Technical Analysis
Positive
33.65
Price Trends
32.73
Positive
31.46
Positive
32.02
Positive
Market Momentum
0.11
Positive
52.58
Neutral
21.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKT, the sentiment is Positive. The current price of 33.65 is below the 20-day moving average (MA) of 33.91, above the 50-day MA of 32.73, and above the 200-day MA of 32.02, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 52.58 is Neutral, neither overbought nor oversold. The STOCH value of 21.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SKT.
Tanger Risk Analysis
Tanger disclosed 36 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 0 New Risks
Tanger Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.25B | 20.26 | 6.15% | 3.20% | 8.63% | 1412.68% | |
75 Outperform | $3.81B | 38.10 | 16.78% | 3.37% | 10.59% | -1.83% | |
71 Outperform | $4.77B | 65.46 | 3.01% | 3.58% | 10.31% | 14.39% | |
68 Neutral | $2.67B | 120.37 | -0.09% | 3.88% | 7.09% | 2591.94% | |
67 Neutral | $4.87B | 28.23 | 5.20% | 4.83% | 4.03% | ― | |
52 Neutral | $4.72B | -30.21 | -15.88% | 3.80% | 4.53% | 40.88% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
SKT
Tanger
33.65
1.62
5.06%
MAC
Macerich
17.90
0.33
1.88%
AKR
Acadia Realty
20.09
-2.73
-11.96%
KRG
Kite Realty Group
22.15
-3.18
-12.55%
FCPT
Four Corners Property
24.45
-3.75
-13.30%
PECO
Phillips Edison & Company
34.49
-1.95
-5.35%
Tanger Corporate Events
Business Operations and StrategyFinancial Disclosures
Tanger Reports Strong Q2 2025 Financial Results
Positive
Aug 4, 2025
On August 4, 2025, Tanger reported strong financial results for the second quarter of 2025, with net income and funds from operations showing significant growth compared to the previous year. The company raised its full-year guidance, driven by effective leasing, operating, and marketing strategies, which have increased shopper engagement and traffic. Tanger’s occupancy rates and average tenant sales per square foot have improved, reflecting successful portfolio management and tenant remerchandising efforts. The company’s robust leasing activity and strong balance sheet provide a solid foundation for continued growth and flexibility in pursuing long-term opportunities.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.