Citi Comments On Tanger Factory Outlet Centers At Global Property CEO Conference

In a report published by Citi, Tanger Factory Outlet Centers SKT presented at Citi's 2011 Global Property CEO Conference.

Citi said that SKT's CEO, Steve Tanger, commented that the tenant community continues to express an interest to expand in the US and Canada, providing Tanger with a solid growth platform. “We value SKT using a combination of NAV, AFFO and FFO multiple valuation. For SKT, our valuation methodologies take into consideration the company's balance sheet and resilient outlet center portfolio. This methodology results in a target price of $26, which is at a 20% premium to our NAV estimate. We use a 23x AFFO multiple and a 19x FFO multiple on 2011 AFFO and FFO estimates given the resilience of outlet centers, organic growth capabilities from increasing occupancy costs, low leverage, and limited balance sheet risk.”

Tanger Factory Outlet Centers closed yesterday at $25.76.