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Tanger Inc. (SKT)
NYSE:SKT
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Tanger
(NYSE:SKT)
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Rating:65Neutral
Price Target:
$35.00
▲(7.30% Upside)
Tanger's overall stock score reflects a strong earnings call performance and solid financial metrics, despite technical indicators suggesting bearish momentum. The company's high P/E ratio indicates potential overvaluation, but the attractive dividend yield and positive earnings outlook provide a balanced perspective. Key strengths include robust leasing activity and strategic growth initiatives, while high leverage and potential retailer challenges pose risks.
Positive Factors
Record Leasing Volume
Record leasing volume indicates strong demand and effective management, supporting revenue stability and growth in the long term.
Strategic Acquisition
The acquisition of Legends Outlets enhances portfolio value and geographic reach, providing potential for increased revenue and market presence.
Increased Full Year Guidance
Increased guidance reflects management's confidence in operational performance and growth prospects, indicating a positive outlook.
Negative Factors
High Leverage
High leverage can limit financial flexibility and increase risk, requiring careful management to maintain financial stability.
Decline in Free Cash Flow Growth
A decline in free cash flow growth may challenge cash generation, impacting the ability to fund operations and investments.
Debt Maturity Considerations
Upcoming debt maturities require strategic refinancing to avoid financial strain, impacting long-term financial planning.
Tanger (SKT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.95B
Dividend Yield3.36%
Average Volume (3M)717.74K
Price to Earnings (P/E)36.3
Beta (1Y)0.56
Revenue Growth9.59%
EPS Growth8.34%
CountryUS
Employees372
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.28
Shares Outstanding115,110,000
10 Day Avg. Volume891,779
30 Day Avg. Volume717,737
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 Cap1.41
Enterprise Value/Revenue9.89
Enterprise Value/Gross Profit14.23
Enterprise Value/Ebitda17.26
Forecast
1Y Price Target
$36.89Price Target Upside13.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)0.93
Revenue Forecast (FY)$550.92M
Tanger Business Overview & Revenue Model
Company DescriptionTanger Factory Outlet Centers, Inc. (SKT) is a leading operator of outlet shopping centers in the United States. The company specializes in developing, leasing, and managing outlet centers that feature a variety of brand-name retailers offering discounted merchandise. Tanger operates in the retail real estate sector and focuses on creating high-quality shopping experiences for consumers while providing brands with a platform to reach their target audiences effectively.
How the Company Makes MoneyTanger generates revenue primarily through leasing space to retailers in its outlet centers. The company earns rental income from long-term leases, which typically include a base rent along with percentage rent based on the sales performance of tenants. Additionally, Tanger benefits from management fees related to its outlet centers and may engage in co-marketing initiatives with tenants that can further enhance its revenue streams. Significant partnerships with well-known retail brands and strategic site locations contribute to its earnings, as these factors attract a steady flow of shoppers and enhance tenant sales, ultimately benefiting Tanger's rental income.
Tanger Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 24, 2026
Earnings Call Sentiment Positive
Tanger Inc. reported strong financial and operating results, marked by record leasing volumes, high sales productivity, and strategic acquisitions. Financial stability and increased guidance further support a positive outlook. However, potential challenges with specific retailers and upcoming debt maturity require attention.Q3-2025 Updates
Positive Updates
Strong Financial Performance
Core FFO was $0.60 per share, an 11% increase over the prior year period, driven by solid same-center NOI growth of 4%.
Record Leasing Volume
Achieved record leasing volume with more than 600 transactions totaling 2.9 million square feet over the trailing 12 months, contributing to a quarter-end occupancy of 97.4%, an 80 basis point sequential increase.
All-Time High Sales Productivity
Portfolio reached sales productivity at an all-time high of $475 per square foot.
Strategic Acquisition
Acquired Legends Outlets in Kansas City for $130 million, expected to deliver an 8% return during the first year.
Financial Stability
Strong balance sheet with conservative leverage metrics; net debt to adjusted EBITDA at 5x, expected to be approximately 4.7x post acquisition.
Increased Full Year Guidance
Raised full-year guidance for core FFO per share to $2.28 to $2.32, representing core FFO growth of 7% to 9%.
Negative Updates
Potential Retailer Challenges
Oshkosh may face downward pressure due to multiple stores with landlords in a center.
Debt Maturity Considerations
Next significant debt maturity will be unsecured bonds in September 2026, requiring attention for refinancing.
Company Guidance
During Tanger Inc.'s Third Quarter 2025 Conference Call, the company reported strong financial and operational results, leading to an increase in their full-year guidance. Key metrics highlighted include a core FFO of $0.60 per share, marking an 11% increase from the previous year, and a same-center NOI growth of 4%. The company achieved record leasing volume with over 600 transactions, covering 2.9 million square feet, resulting in an occupancy rate of 97.4%, an 80 basis point increase from the previous quarter. Sales productivity reached an all-time high of $475 per square foot, with blended rent spreads exceeding 10%, marking the 15th consecutive quarter of positive rent spreads. Tanger also completed its 2025 lease roll, focusing on increased re-tenanting activity and an 80% renewal target. Additionally, the company advanced its external growth strategy with the acquisition of Legends Outlets in Kansas City, Kansas, for $130 million, expecting an 8% return in the first year. Tanger's financial strength is underscored by a net debt to adjusted EBITDA ratio of 5x and liquidity of $581 million at quarter-end, with 97% of their debt at fixed rates and a weighted average interest rate of 4.1%. The company raised its full-year core FFO guidance to $2.28-$2.32 per share, indicating a growth of 7%-9%.Tanger Financial Statement Overview
Summary
Tanger demonstrates a solid financial performance with strong profitability and cash flow metrics. The company shows consistent revenue growth and effective cost management, contributing to healthy profit margins. However, the high leverage indicated by the debt-to-equity ratio poses potential risks, requiring careful management. Despite the decline in free cash flow growth, the company maintains strong cash flow relative to earnings, supporting its financial stability.Income Statement
Tanger's income statement shows a solid performance with a consistent revenue growth rate of 2.22% TTM, indicating a stable upward trajectory. The gross profit margin of 69.49% and net profit margin of 19.18% TTM are strong, reflecting effective cost management and profitability. However, the EBIT margin of 21.92% TTM suggests room for improvement in operational efficiency. Overall, the income statement reflects a healthy financial position with potential for further growth.75
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 3.75 TTM, indicating significant leverage, which could pose risks if not managed carefully. The return on equity of 16.25% TTM is commendable, showing effective use of equity to generate profits. However, the equity ratio of 27.77% TTM suggests a lower proportion of equity financing, which may affect financial stability. Overall, the balance sheet reflects a leveraged position with strong returns but potential risks due to high debt levels.60
Neutral
Cash Flow
Tanger's cash flow statement shows a decline in free cash flow growth by 13.56% TTM, indicating potential challenges in cash generation. However, the operating cash flow to net income ratio of 2.66 TTM and free cash flow to net income ratio of 1.20 TTM demonstrate strong cash flow relative to earnings, highlighting efficient cash management. Despite the decline in free cash flow growth, the company maintains robust cash flow metrics, supporting its financial health.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 562.00M | 526.06M | 464.41M | 442.61M | 426.52M | 389.99M |
| Gross Profit | 390.53M | 367.33M | 318.86M | 298.68M | 285.79M | 252.86M |
| EBITDA | 322.12M | 302.09M | 260.70M | 244.70M | 172.43M | 142.27M |
| Net Income | 107.80M | 98.59M | 99.15M | 82.06M | 9.12M | -36.28M |
Balance Sheet | ||||||
| Total Assets | 2.64B | 2.38B | 2.32B | 2.22B | 2.16B | 2.19B |
| Cash, Cash Equivalents and Short-Term Investments | 13.03M | 46.99M | 21.96M | 264.57M | 161.25M | 84.83M |
| Total Debt | 1.70B | 1.51B | 1.53B | 1.52B | 1.49B | 1.66B |
| Total Liabilities | 1.90B | 1.70B | 1.73B | 1.70B | 1.66B | 1.83B |
| Stockholders Equity | 703.65M | 652.37M | 566.78M | 491.64M | 477.93M | 341.39M |
Cash Flow | ||||||
| Free Cash Flow | 248.25M | 156.40M | 229.61M | 166.60M | 171.80M | 136.74M |
| Operating Cash Flow | 291.98M | 264.44M | 229.61M | 213.96M | 217.72M | 164.75M |
| Investing Cash Flow | -334.86M | -181.69M | -409.56M | -98.82M | -22.74M | -18.77M |
| Financing Cash Flow | 82.08M | -48.41M | -19.28M | -64.16M | -118.38M | -77.59M |
Tanger Technical Analysis
Positive
32.62
Price Trends
33.25
Positive
33.10
Positive
31.77
Positive
Market Momentum
0.28
Negative
57.29
Neutral
76.29
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 32.62 is below the 20-day moving average (MA) of 33.42, below the 50-day MA of 33.25, and above the 200-day MA of 31.77, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 57.29 is Neutral, neither overbought nor oversold. The STOCH value of 76.29 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $4.95B | 58.33 | 3.62% | 3.51% | 10.58% | 37.97% | |
71 Outperform | $2.49B | 21.47 | 7.56% | 6.06% | 8.28% | 1.49% | |
71 Outperform | $2.74B | 164.01 | 0.74% | 3.83% | 8.85% | 27.38% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $3.95B | 36.30 | 16.81% | 3.36% | 9.59% | 8.34% | |
61 Neutral | $5.18B | 211.21 | 4.71% | 4.55% | 3.67% | ― | |
55 Neutral | $4.98B | -81.54 | -18.43% | 3.64% | 8.06% | 74.26% |
* Real Estate Sector Average
SKT
Tanger
34.06
0.78
2.34%
MAC
Macerich
18.82
-0.99
-5.00%
AKR
Acadia Realty
20.60
-2.64
-11.36%
KRG
Kite Realty Group
23.74
-0.34
-1.41%
FCPT
Four Corners Property
23.27
-3.07
-11.66%
PECO
Phillips Edison & Company
35.59
-1.58
-4.25%
Tanger Corporate Events
Business Operations and StrategyFinancial Disclosures
Tanger Reports Strong Q3 2025 Financial Results
Positive
Nov 4, 2025
On November 4, 2025, Tanger reported its financial results for the third quarter of 2025, showing strong performance with net income and funds from operations both increasing compared to the previous year. The company achieved record leasing volume and high sales productivity, driven by robust tenant demand and strategic acquisitions, such as the addition of Tanger Kansas City at Legends. The company’s occupancy rate was 97.4% as of September 30, 2025, and average tenant sales per square foot increased, reflecting successful portfolio management. Tanger raised its full-year guidance, indicating confidence in continued growth and value creation for stakeholders.
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.