SKT
Tanger Inc.
$35.50
Real Estate Investment Trust
85%
P/FFO × Retail REIT Multiple
Moderate
·
Conviction
Fair Value
Trading 18.2% below fair value
You pay
$35.50
Bear
$34.73
Fair
$43.41
Bull
$52.10
Bear
$34.73
-2.2%
$2.31 FFO × 16x
Fair
$43.41
+22.3%
$2.31 FFO × 20x
Bull
$52.10
+46.7%
$2.31 FFO × 23x
Key Value Driver
FFO/share ($2.31) × retail P/FFO multiple
Implied Market Multiple
15.3x
Summary
Our base-case estimate uses P/FFO × Retail REIT Multiple. We then blend that result with the average analyst price target of $38.33 from 18 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $43.41 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