BofA Securities Adjusts Ratings on Five REITs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: seekingalpha
- WPC Upgrade: BofA upgraded W. P. Carey (WPC) from Underperform to Neutral, raising the price target from $73 to $83, reflecting successful portfolio simplification despite slight credit event risks.
- EXR Upgrade: Extra Space Storage (EXR) was also upgraded to Neutral from Underperform, with the price target increased to $156, as fundamentals exceeded expectations despite macroeconomic consumer concerns, with revenue growth expected to improve into 2027.
- KRC Upgrade: Kilroy Realty (KRC) was upgraded from Neutral to Buy, with the price target raised from $42 to $44, driven by active capital recycling and a 46% year-over-year increase in leasing volume, indicating strong external growth potential.
- HPP and SKT Downgrades: Hudson Pacific Properties (HPP) was downgraded from Neutral to Underperform with a price target of $14, indicating poor relative returns; similarly, Tanger (SKT) was downgraded to Underperform with a maintained price target of $38 due to diminished risk/reward attractiveness.
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Analyst Views on SKT
Wall Street analysts forecast SKT stock price to fall
7 Analyst Rating
3 Buy
4 Hold
0 Sell
Moderate Buy
Current: 38.680
Low
34.00
Averages
36.86
High
40.00
Current: 38.680
Low
34.00
Averages
36.86
High
40.00
About SKT
Tanger Inc. is an owner and operator of outlet and open-air retail shopping destinations, with expertise in the retail and outlet shopping industries. The Company is a fully integrated, self-administered and self-managed real estate investment trust (REIT), which focuses on developing, acquiring, owning, operating and managing outlets and other open-air retail centers. Its shopping centers and other assets are held by, and all its operations are conducted by Tanger Properties Limited Partnership and subsidiaries (Operating Partnership). Its portfolio includes approximately 38 outlet centers, and four open-air lifestyle centers includes 17 million square feet across tourist destinations and markets in Canada and 22 states in the United States. It offers over 3,000 stores operated by more than 800 different brand name companies. Its consolidated outlet centers include Tanger Outlets Deer Park, Tanger Outlets Riverhead, Tanger Outlets Foley, Tanger Outlets Rehoboth Beach, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Mixed Performance in US Stock Indices Amid Energy Sector Pressure
- Mixed Market Performance: The S&P 500 Index rose by 0.11%, the Dow Jones Industrial Average increased by 0.57%, while the Nasdaq 100 Index fell by 0.18%, indicating a complex market sentiment particularly influenced by the pressure on energy stocks due to declining oil prices.
- Oil Price Impact: WTI crude oil prices dropped over 3% to a 3.25-month low, easing inflation expectations and providing support for stocks and bonds, reflecting a cautious market outlook on future economic growth.
- Weak Housing Data: US May housing starts fell by 15.4% month-over-month to a six-year low of 1.177 million, below the expected 1.430 million, indicating potential challenges for economic recovery stemming from a sluggish real estate market.
- FOMC Meeting Focus: Market attention shifts to the two-day FOMC meeting, where rates are expected to remain unchanged, but the press conference led by new Chair Kevin Warsh will be pivotal in shaping future monetary policy directions.
See More
BofA Securities Adjusts Ratings on Five REITs
- WPC Upgrade: BofA upgraded W. P. Carey (WPC) from Underperform to Neutral, raising the price target from $73 to $83, reflecting successful portfolio simplification despite slight credit event risks.
- EXR Upgrade: Extra Space Storage (EXR) was also upgraded to Neutral from Underperform, with the price target increased to $156, as fundamentals exceeded expectations despite macroeconomic consumer concerns, with revenue growth expected to improve into 2027.
- KRC Upgrade: Kilroy Realty (KRC) was upgraded from Neutral to Buy, with the price target raised from $42 to $44, driven by active capital recycling and a 46% year-over-year increase in leasing volume, indicating strong external growth potential.
- HPP and SKT Downgrades: Hudson Pacific Properties (HPP) was downgraded from Neutral to Underperform with a price target of $14, indicating poor relative returns; similarly, Tanger (SKT) was downgraded to Underperform with a maintained price target of $38 due to diminished risk/reward attractiveness.
See More
Tanger Earns National Recognition for Employee Culture and Investor Communications
- Employee Culture Recognition: Tanger has been named one of America's Greatest Midsized Workplaces for 2026, a distinction based on comprehensive evaluations of employee feedback and publicly available data, which enhances employee satisfaction and bolsters the company's reputation.
- Standard for Transparent Communication: Tanger received the Nareit Investor CARE Gold Award in the Small Cap Equity REIT category for 2026, marking the third consecutive year it has achieved this honor, indicating the company's leadership in transparency and effectiveness in investor communications, thereby strengthening investor trust.
- Multiple Honors: In 2026, Tanger received three recognitions from Newsweek, including
See More
Tanger Inc. Reports Strong Q1 2026 Earnings with Increased Guidance
- Core Earnings Growth: Tanger Inc. reported a core FFO of $0.59 per share for Q1 2026, reflecting an 11% year-over-year increase, which underscores the company's sustained momentum across its leasing, operating, and marketing platforms, thereby enhancing its full-year guidance for 2026.
- Record Leasing Performance: The company executed 651 leases totaling 3.4 million square feet over the past 12 months, marking a record production level that positions Tanger for future revenue growth through strong rent increases.
- Dividend Increase: Tanger announced a 7% increase in its dividend, supported by earnings growth and conservative payout ratios, demonstrating management's confidence in future cash flows and financial health.
- Strong Liquidity Position: At the end of the quarter, Tanger Inc. reported over $1 billion in immediate liquidity, with all debt at fixed rates, providing flexibility to manage upcoming maturities and enhancing the company's financial stability.
See More
Tanger (SKT) Q1 2026 Earnings Call Transcript
See More
Tanger (SKT) Announces 6.8% Increase in Quarterly Dividend
- Dividend Increase: Tanger has declared a quarterly dividend of $0.3125 per share, reflecting a 6.8% increase from the previous $0.2925, demonstrating the company's ongoing commitment to stable cash flow and shareholder returns, which enhances investor confidence.
- Yield Performance: The forward yield of 3.43% not only attracts income-seeking investors but also potentially strengthens the company's competitive position in the Real Estate Investment Trust (REIT) market, appealing to a broader investor base.
- Shareholder Assurance: The dividend is payable on May 15, with a record date of April 30 and an ex-dividend date also on April 30, ensuring shareholders receive timely returns and further solidifying their trust in the company.
- Market Performance: Despite a neutral rating adjustment from BofA, Tanger has shown relative strength in recent market performance, indicating a favorable risk-reward balance that may draw increased investor interest.
See More
Mixed Performance in US Stock Indices Amid Energy Sector Pressure
- Mixed Market Performance: The S&P 500 Index rose by 0.11%, the Dow Jones Industrial Average increased by 0.57%, while the Nasdaq 100 Index fell by 0.18%, indicating a complex market sentiment particularly influenced by the pressure on energy stocks due to declining oil prices.
- Oil Price Impact: WTI crude oil prices dropped over 3% to a 3.25-month low, easing inflation expectations and providing support for stocks and bonds, reflecting a cautious market outlook on future economic growth.
- Weak Housing Data: US May housing starts fell by 15.4% month-over-month to a six-year low of 1.177 million, below the expected 1.430 million, indicating potential challenges for economic recovery stemming from a sluggish real estate market.
- FOMC Meeting Focus: Market attention shifts to the two-day FOMC meeting, where rates are expected to remain unchanged, but the press conference led by new Chair Kevin Warsh will be pivotal in shaping future monetary policy directions.
See More
BofA Securities Adjusts Ratings on Five REITs
- WPC Upgrade: BofA upgraded W. P. Carey (WPC) from Underperform to Neutral, raising the price target from $73 to $83, reflecting successful portfolio simplification despite slight credit event risks.
- EXR Upgrade: Extra Space Storage (EXR) was also upgraded to Neutral from Underperform, with the price target increased to $156, as fundamentals exceeded expectations despite macroeconomic consumer concerns, with revenue growth expected to improve into 2027.
- KRC Upgrade: Kilroy Realty (KRC) was upgraded from Neutral to Buy, with the price target raised from $42 to $44, driven by active capital recycling and a 46% year-over-year increase in leasing volume, indicating strong external growth potential.
- HPP and SKT Downgrades: Hudson Pacific Properties (HPP) was downgraded from Neutral to Underperform with a price target of $14, indicating poor relative returns; similarly, Tanger (SKT) was downgraded to Underperform with a maintained price target of $38 due to diminished risk/reward attractiveness.
See More
Tanger Earns National Recognition for Employee Culture and Investor Communications
- Employee Culture Recognition: Tanger has been named one of America's Greatest Midsized Workplaces for 2026, a distinction based on comprehensive evaluations of employee feedback and publicly available data, which enhances employee satisfaction and bolsters the company's reputation.
- Standard for Transparent Communication: Tanger received the Nareit Investor CARE Gold Award in the Small Cap Equity REIT category for 2026, marking the third consecutive year it has achieved this honor, indicating the company's leadership in transparency and effectiveness in investor communications, thereby strengthening investor trust.
- Multiple Honors: In 2026, Tanger received three recognitions from Newsweek, including
See More
Tanger Inc. Reports Strong Q1 2026 Earnings with Increased Guidance
- Core Earnings Growth: Tanger Inc. reported a core FFO of $0.59 per share for Q1 2026, reflecting an 11% year-over-year increase, which underscores the company's sustained momentum across its leasing, operating, and marketing platforms, thereby enhancing its full-year guidance for 2026.
- Record Leasing Performance: The company executed 651 leases totaling 3.4 million square feet over the past 12 months, marking a record production level that positions Tanger for future revenue growth through strong rent increases.
- Dividend Increase: Tanger announced a 7% increase in its dividend, supported by earnings growth and conservative payout ratios, demonstrating management's confidence in future cash flows and financial health.
- Strong Liquidity Position: At the end of the quarter, Tanger Inc. reported over $1 billion in immediate liquidity, with all debt at fixed rates, providing flexibility to manage upcoming maturities and enhancing the company's financial stability.
See More
Tanger (SKT) Q1 2026 Earnings Call Transcript
See More
Tanger (SKT) Announces 6.8% Increase in Quarterly Dividend
- Dividend Increase: Tanger has declared a quarterly dividend of $0.3125 per share, reflecting a 6.8% increase from the previous $0.2925, demonstrating the company's ongoing commitment to stable cash flow and shareholder returns, which enhances investor confidence.
- Yield Performance: The forward yield of 3.43% not only attracts income-seeking investors but also potentially strengthens the company's competitive position in the Real Estate Investment Trust (REIT) market, appealing to a broader investor base.
- Shareholder Assurance: The dividend is payable on May 15, with a record date of April 30 and an ex-dividend date also on April 30, ensuring shareholders receive timely returns and further solidifying their trust in the company.
- Market Performance: Despite a neutral rating adjustment from BofA, Tanger has shown relative strength in recent market performance, indicating a favorable risk-reward balance that may draw increased investor interest.
See More
