Tanger (SKT) just posted first quarter 2026 results that included higher revenue, net income and funds from operations, record leasing activity, 97% occupancy, a higher dividend and a modest raise to full year earnings guidance.

That solid first quarter update comes after a steady run in the stock, with a 30-day share price return of 5.0% and a 90-day gain of 14.76%. The 1-year total shareholder return of 28.49% and 5-year total shareholder return of 161.88% point to momentum that has been building rather than fading.

If Tanger’s progress has you thinking about what else is working in real assets and infrastructure, it could be worth widening your search with 36 power grid technology and infrastructure stocks

With SKT up strongly over the past year and trading only about 8% below one intrinsic value estimate, the key question now is whether Tanger is still mispriced or if the market already reflects expectations for the next phase of growth.

Most Popular Narrative: 5.6% Undervalued

The most followed valuation narrative puts Tanger’s fair value at $38.45, slightly above the last close of $36.30, and ties that gap to measured, modelled growth in revenue, margins and earnings over time.

The continued migration of population and densification in Sunbelt and key U.S. regions, alongside shifts turning tourist-heavy areas into permanent residential communities, is increasing local demand and foot traffic at Tanger's centers, supporting sustained rent growth, higher occupancy, and ultimately driving revenue and NOI expansion.

Want to see what is sitting behind that fair value gap? The narrative leans on steady top line expansion, rising profitability and a richer future earnings multiple. The exact mix of those inputs might surprise you.

Result: Fair Value of $38.45 (UNDERVALUED)

However, you need to weigh that fair value gap against risks such as a further shift to e commerce or tenant bankruptcies, which could pressure rental income and margins.

Next Steps

If this mix of optimism and concern leaves you undecided, review the underlying data now and form your own view using 3 key rewards and 3 important warning signs

Looking for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.