STAG Industrial, Inc. (
STAG
),
a real estate investment trust (REIT), has recently acquired two
warehouse and distribution facilities for approximately $26
million. The two adjacent properties span 787,380 square feet and
are located near Greenville, South Carolina. With this transaction,
the company's year-to-date acquisition tally has surged to $200
million.
The two buildings are currently fully leased. One of the acquired
properties, spanning 474,000 square feet, is leased to L. Perrigo
Company, while the other (spanning 313,380 square feet) is leased
to Arvato Digital Services, LLC.
L. Perrigo is a leading developer, manufacturer and distributor of
pharmaceuticals and nutritional products. It uses this facility for
storage and distribution of its nutritional products. Arvato
provides various manufacturing and distribution services to media
and entertainment and other industries. It uses the facility for
producing and managing data storage media.
Through this strategic initiative, the company expects to enhance
the quality of its portfolio and expects it to be accretive to
earnings going forward. At the same time, the company continues the
diversification of its portfolio to maintain a mix of markets and
tenants, which in turn will limit its exposure to any single
tenant, industry, or geographic location.
Despite the challenging economic environment, STAG Industrial has
been very active on the acquisition front. Earlier in the
second quarter 2012, the company completed the acquisition of 12
properties for $74.9 million and added 2.3 million square feet to
its portfolio
STAG Industrial is focused on the acquisition, ownership and
management of single-tenant industrial properties throughout the
United States. The company is focused on the acquisition of Class
B, single tenant industrial properties primarily in secondary
markets. Presently, the company's portfolio consists of 132
properties in 29 states with approximately 23.1 million rentable
square feet.
STAG Industrial currently retains a Zacks #2 Rank, which translates
into a short-term Buy rating. We have a long-term Neutral
recommendation on the stock. One of its competitors,
First industrial Realty Trust Inc (
FR
)
retains a Zacks# 3 rank, which translates into a short term Hold
rating.
FIRST INDL RLTY (FR): Free Stock Analysis
Report
STAG INDUSTRIAL (STAG): Free Stock Analysis
Report
To read this article on Zacks.com click here.
Zacks Investment
Research