SKT
Tanger Inc.
$39.63
Real Estate Investment Trust
85%
P/FFO × Retail REIT Multiple
Mild
·
Conviction
Fair Value
Trading 9.6% below fair value
You pay
$39.63
Bear
$35.07
Fair
$43.83
Bull
$52.60
Bear
$35.07
-11.5%
$2.31 FFO × 16x
Fair
$43.83
+10.6%
$2.31 FFO × 20x
Bull
$52.60
+32.7%
$2.31 FFO × 23x
Key Value Driver
FFO/share ($2.31) × retail P/FFO multiple
Implied Market Multiple
17.1x
Summary
Our base-case estimate uses P/FFO × Retail REIT Multiple. We then blend that result with the average analyst price target of $40.00 from 21 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $43.83 per share.
Warnings
Standard profit figures are misleading for real estate companies — large non-cash accounting charges make profits look artificially low. Dividend yield and funds from operations are better measures.
Key Risks
- P/E and EV/EBITDA are structurally wrong for REITs — use P/FFO and NAV
- Interest rate sensitivity: REIT multiples compress when rates rise
- FFO approximation (NI + D&A) may include gains on property sales — verify