Tanger Factory Outlet Centers, Inc. (SKT) | Investment Case

1. Company Snapshot

1.a. Company Description

Tanger Factory Outlet Centers, Inc.(NYSE: SKT) is a leading operator of open-air upscale outlet shopping centers that owns, or has an ownership interest in, a portfolio of 38 centers.Tanger's operating properties are located in 20 states and in Canada, totaling approximately 14.1 million square feet, leased to over 2,700 stores operated by more than 500 different brand name companies.

The Company has more than 39 years of experience in the outlet industry and is a publicly-traded REIT.Tanger is furnishing a Form 8-K with the Securities and Exchange Commission ("SEC") that includes a supplemental information package for the quarter ended September 30, 2020.

Show Full description

1.b. Last Insights on SKT

Tanger Factory Outlet Centers, Inc.'s recent performance was driven by strong fundamentals, including 10 consecutive quarters of double-digit rent spreads and robust leasing activity. The company's strategic acquisitions and re-merchandising efforts supported its guidance for 6% FFO/share growth. Additionally, Tanger's Q2 2025 earnings beat estimates, with FFO of $0.58 per share, driven by improved expense expectations and solid senior housing fundamentals.

1.c. Company Highlights

Last Price	32.09
Change Percentage	-0.53%
Open	32.19
Previous Close	32.26
Market Cap ( Millions)	3603
Volume	525717
Year High	36.76
Year Low	28.69
M A 50	33.24
M A 200	32.3

FCF Yield	9.27%
Dividend Yield	3.59%
ROE	16.25%
Debt / Equity	375.09%
Net Debt / EBIDTA	785.63%
Price To Book	4.89
Price Earnings Ratio	33.21
Price To FCF	10.79
Price To sales	6.41
EV / EBITDA	18.21

2. Tanger's Q3 2025 Earnings: A Strong Performance

Tanger Inc.'s third-quarter 2025 results demonstrated a robust financial performance, with core FFO per share reaching $0.60, an 11% increase over the prior year. The company's actual EPS of $0.6 beat estimates of $0.58. Revenue growth was driven by a 4% same-center NOI growth, record leasing volume, and a quarter-end occupancy rate of 97.4%. The company's sales productivity reached an all-time high of $475 per square foot, with blended rent spreads of over 10%. Tanger's balance sheet remains strong, with a net debt to adjusted EBITDA of 5x and approximately $581 million of total liquidity at quarter-end.

Publication Date: Nov -16

                                    📋 Highlights
                                    Core FFO Growth::
                                                11% YoY increase to $0.60/share, driven by 4% same-center NOI growth.
Leasing Performance::
                                                600 transactions (2.9M sq ft) in trailing 12 months, 97.4% quarter-end occupancy.
Acquisition Yield::
                                                $130M Legends Outlets purchase targets 8% first-year return, rebranded as Tanger Kansas City.
Balance Sheet Strength::
                                                $581M liquidity, net debt/EBITDA of 5x; full-year core FFO guidance raised to $2.28–$2.32/share (7–9% growth).

                                

Operational Highlights

The company's focus on traffic generation through marketing and platform initiatives is driving more trips, longer stays, and higher traffic. Tanger's marketing team launched an "early back-to-school" shopping campaign, which drove traffic to its centers, and the "Every Day is Black Friday" campaign, starting November 1, is expected to drive traffic throughout November and December. The company is also investing in data analytics and food and beverage (F&B) components at its centers, which is increasing dwell time and customers' stay.

Growth Prospects

Tanger is well-positioned for continued growth, with a strong balance sheet and supportive capital markets. The company is raising its full-year guidance, expecting core FFO per share of $2.28 to $2.32, representing 7% to 9% growth. Same-center NOI growth is expected to be 3.5% to 4.25%. The company sees opportunities to optimize its portfolio and is being selective in its retenanting efforts, aiming to renew 80-85% of leases and upgrade tenants.

Valuation

Tanger's current valuation metrics indicate a 'P/E Ratio' of 35.11, 'P/B Ratio' of 5.17, and 'EV/EBITDA' of 18.81. Analysts estimate next year's revenue growth at 3.9%. The company's dividend yield stands at 3.4%, and its free cash flow yield is 8.76%. These metrics suggest that the market is pricing in a certain level of growth, but Tanger's strong operational performance and growth prospects may justify its current valuation.

3. NewsRoom

Tanger CEO: Gap expected to be a huge winner this holiday season

Nov -24

Source: youtube.com

Here Are Wednesday's Top Wall Street Analyst Research Calls: DoorDash, Freeport-McMoRan, GitLab, Home Depot, Medtronic, Molson-Coors, and More

Nov -19

Source: 247wallst.com

Tanger Inc. $SKT Shares Sold by Campbell & CO Investment Adviser LLC

Nov -18

Source: defenseworld.net

Retailers are still growing their business, finding new locations, says Tanger CEO Yalof

Nov -05

Source: youtube.com

Tanger Inc. (SKT) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

Teacher Retirement System of Texas Has $1.47 Million Holdings in Tanger Inc. $SKT

Nov -05

Source: defenseworld.net

Tanger (SKT) Q3 FFO Beat Estimates

Nov -04

Source: zacks.com

Tanger Inc. (NYSE:SKT) Given Average Rating of “Moderate Buy” by Brokerages

Oct -30

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.50%)

6. Segments

Rental

Expected Growth: 2.5%

Tanger Factory Outlet Centers' 2.5% rental growth is driven by increasing demand for outlet shopping, strategic re-merchandising efforts, and expansion into new markets. Additionally, the company's focus on omnichannel integration and experiential retail offerings enhances the shopping experience, attracting more consumers and driving rental revenue growth.

Other

Expected Growth: 2.0%

Tanger Factory Outlet Centers' 2.0% growth in 'Other' segment is driven by increased sponsorship and advertising revenue, higher fees from third-party management contracts, and growing demand for experiential events and strategic partnerships, offsetting declines in ancillary revenue streams.

Management, Leasing and Other Services

Expected Growth: 3.5%

Tanger Factory Outlet Centers' 3.5% growth in Management, Leasing, and Other Services is driven by strong occupancy rates, increased rent per square foot, and expansion of its outlet centers. Effective cost management, strategic leasing initiatives, and growth in ancillary revenue streams also contribute to this growth.

7. Detailed Products

Outlet Centers

Tanger Factory Outlet Centers, Inc. develops, owns, and operates outlet shopping centers across the United States and Canada.

Retail Space Leasing

Tanger offers retail space leasing opportunities to brand-name retailers, providing a platform for them to sell their products to customers.

Property Management

Tanger provides property management services to its outlet centers, ensuring the maintenance and upkeep of the properties.

Marketing and Advertising

Tanger offers marketing and advertising services to its retailers, helping them to promote their products and attract customers.

8. Tanger Factory Outlet Centers, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Tanger Factory Outlet Centers, Inc. faces moderate threat from substitutes due to the presence of alternative shopping options such as online shopping platforms and local retail stores.

Bargaining Power Of Customers

Tanger Factory Outlet Centers, Inc. has a low bargaining power of customers due to the fragmented nature of the customer base and the lack of significant purchasing power.

Bargaining Power Of Suppliers

Tanger Factory Outlet Centers, Inc. has a moderate bargaining power of suppliers due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

Tanger Factory Outlet Centers, Inc. faces a low threat of new entrants due to the high barriers to entry in the outlet mall industry, including the need for significant capital investment and the complexity of developing and maintaining relationships with brand partners.

Intensity Of Rivalry

Tanger Factory Outlet Centers, Inc. operates in a highly competitive industry with several established players, leading to a high intensity of rivalry among competitors.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	71.93%
Debt Cost	3.95%
Equity Weight	28.07%
Equity Cost	12.92%
WACC	6.47%
Leverage	256.22%

11. Quality Control: Tanger Factory Outlet Centers, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Brixmor Property Group

A-Score: 6.6/10

Value: 4.2

Growth: 5.2

Quality: 7.9

Yield: 8.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

Four Corners Property Trust

A-Score: 6.5/10

Value: 4.8

Growth: 5.8

Quality: 6.0

Yield: 10.0

Momentum: 2.5

Volatility: 10.0

1-Year Total Return ->

National Retail Properties

A-Score: 6.4/10

Value: 4.5

Growth: 4.1

Quality: 8.1

Yield: 9.0

Momentum: 3.0

Volatility: 10.0

1-Year Total Return ->

Regency Centers

A-Score: 6.2/10

Value: 2.9

Growth: 4.3

Quality: 6.7

Yield: 8.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

Tanger Factory Outlet

A-Score: 5.8/10

Value: 2.6

Growth: 4.6

Quality: 6.6

Yield: 7.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

SITE Centers

A-Score: 5.7/10

Value: 8.2

Growth: 3.7

Quality: 7.5

Yield: 10.0

Momentum: 0.5

Volatility: 4.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

1.69%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.47%

Tanger Factory Outlet Centers, Inc. - US8754651060

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SKT

1.c. Company Highlights

Expensive

Strong Momentum

Average Quality

Earnings Beats

Average Yield

Earnings Miss

Stable Momentum

Revenues Beats

Average Growth

Medium Volatility

Better Quality

2. Tanger's Q3 2025 Earnings: A Strong Performance

Operational Highlights

Growth Prospects

Valuation

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.50%)

6. Segments

Rental

Expected Growth: 2.5%

Other

Expected Growth: 2.0%

Management, Leasing and Other Services

Expected Growth: 3.5%

7. Detailed Products

Outlet Centers

Retail Space Leasing

Property Management

Marketing and Advertising

8. Tanger Factory Outlet Centers, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Tanger Factory Outlet Centers, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

32.09$

Current Price

32.09$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA