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Tanger Inc. (SKT)

Company Dividend Discount ModelIndustry: REIT - RetailSector: Real Estate

Valuation Snapshot

Stable Growth$7.94 - $11.87$9.81
Multi-Stage$12.17 - $13.32$12.74
Blended Fair Value$11.27
Current Price$33.84
Upside-66.69%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.000.910.740.640.581.161.151.141.240.92
YoY Growth---100.00%23.22%16.28%8.80%-49.83%1.08%0.83%-7.74%34.53%15.95%
Dividend Yield--0.00%3.10%3.77%3.70%3.86%23.29%5.66%5.19%3.78%2.53%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)107.80
(-) Cash Dividends Paid (M)62.70
(=) Cash Retained (M)45.10
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)21.5613.488.09
Cash Retained (M)45.1045.1045.10
(-) Cash Required (M)-21.56-13.48-8.09
(=) Excess Retained (M)23.5431.6337.02
(/) Shares Outstanding (M)113.91113.91113.91
(=) Excess Retained per Share0.210.280.32
LTM Dividend per Share0.550.550.55
(+) Excess Retained per Share0.210.280.32
(=) Adjusted Dividend0.760.830.88
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-0.41%0.59%1.59%
Fair Value$7.94$9.81$11.87
Upside / Downside-76.52%-71.01%-64.92%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)107.80108.43109.07109.72110.36111.01114.34
Payout Ratio58.16%64.53%70.90%77.27%83.63%90.00%92.50%
Projected Dividends (M)62.7069.9777.3384.7792.3099.91105.77

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-0.41%0.59%1.59%
Year 1 PV (M)63.5164.1564.79
Year 2 PV (M)63.7164.9966.29
Year 3 PV (M)63.3965.3267.28
Year 4 PV (M)62.6465.2067.83
Year 5 PV (M)61.5564.7067.98
PV of Terminal Value (M)1,071.581,126.481,183.59
Equity Value (M)1,386.381,450.831,517.76
Shares Outstanding (M)113.91113.91113.91
Fair Value$12.17$12.74$13.32
Upside / Downside-64.03%-62.36%-60.62%

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