| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 32.85 | 0 |
| Intrinsic value (DCF) | 13.84 | -58 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 18.78 | -43 |
Tanger Inc. (NYSE: SKT) is a premier real estate investment trust (REIT) specializing in outlet and open-air retail shopping centers. With a portfolio spanning 38 outlet centers, one managed center, and one lifestyle center across 20 U.S. states and Canada, Tanger operates over 15 million square feet of retail space. Founded over 43 years ago, the company has established itself as a leader in the outlet shopping industry, hosting more than 3,000 stores from over 700 brand-name retailers. Tanger’s strategic locations in high-traffic tourist destinations and vibrant markets enhance its appeal to both shoppers and tenants. As a publicly traded REIT since 1993, Tanger combines retail expertise with financial stability, offering investors exposure to a niche segment of the retail real estate market. The company’s focus on innovation and tenant diversification positions it well in an evolving retail landscape.
Tanger Inc. presents a compelling investment case as a specialized retail REIT with a strong portfolio of outlet centers. The company benefits from high foot traffic in tourist-heavy locations and a diversified tenant base, reducing reliance on any single retailer. With a market cap of $3.26 billion and a solid dividend yield (current dividend of $1.1175 per share), Tanger offers income-focused investors stability in the REIT sector. However, risks include exposure to retail sector volatility, e-commerce competition, and macroeconomic factors affecting consumer spending. The company’s beta of 1.177 suggests moderate sensitivity to market movements. Investors should weigh Tanger’s operational strengths against broader retail headwinds.
Tanger Inc. holds a competitive edge in the outlet retail segment due to its specialized focus, long-standing industry relationships, and prime property locations. Unlike traditional mall operators, Tanger’s outlet-centric model attracts value-conscious shoppers, providing resilience against e-commerce pressures. The company’s tenant mix, featuring premium brands at discounted prices, differentiates it from general retail REITs. Tanger’s scale (38 centers) and operational expertise allow for efficient property management and leasing. However, competition from mixed-use developments and online discount platforms poses challenges. Tanger’s ability to adapt through digital integration (e.g., hybrid shopping experiences) will be key to maintaining its competitive position. Financially, its moderate leverage (total debt of $1.51 billion) and strong operating cash flow ($260.7 million) support growth initiatives, but the REIT must navigate rising interest rates and tenant turnover risks.