SKT
Tanger Inc.
$38.05
Real Estate Investment Trust
85%
P/FFO × Retail REIT Multiple
Mild
·
Conviction
Overvalued
Trading 7.9% above fair value
You pay
$38.05
Bear
$28.20
Fair
$35.26
Bull
$42.31
Bear
$28.20
-25.9%
$2.31 FFO × 12x
Fair
$35.26
-7.3%
$2.31 FFO × 15x
Bull
$42.31
+11.2%
$2.31 FFO × 18x
Adjust Assumptions
15.2x
$
Key Value Driver
FFO/share ($2.31) × retail P/FFO multiple
Implied Market Multiple
16.4x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (21 analysts)
$40.17
Divergence from AlphaVal
12%
Summary
At $2.31 FFO/share with a 15x retail REIT multiple, the base-case value is $35.26 per share. Dividend yield: 3.2%.
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