STAG Industrial, Inc.
) provided update on its leasing and acquisition transactions for
December 2013 and fourth-quarter 2013. We believe the deals are
aimed at securing steady revenue growth opportunities and
improving the company's portfolio quality.
In Dec 2013, STAG Industrial penned one new lease deal for
approximately 35,000 square feet of space in Holland, Mich. In
addition, the real estate investment trust (REIT) inked one lease
renewal deal for 56,000 square feet of space in Cincinnati,
Overall, in fourth-quarter 2013, the company signed leases for
around 728,000 square feet of space in aggregate. Of these,
around 134,000 square feet were renewal lease deals and roughly
594,000 square feet were new and expansion leases.
Consequently, the occupancy rate at STAG Industrial for
fourth-quarter 2013 was pushed up 160 basis points sequentially
and 50 basis points on a year-over-year basis to 95.6%.
In Dec 2013, STAG Industrial bought 6 buildings - which
include 4 warehouse and distribution facilities and 2 light
manufacturing facilities - for about $56 million. Of the acquired
buildings, 3 assets are situated near Chicago (Illinois) and the
rest are near Janesville (Wisconsin), Lansing (Michigan) and
Knoxville (Tennessee). The properties, comprising a total of 1.7
million square feet, are 100% leased having over five years of
remaining weighted average lease term.
Overall, in fourth-quarter 2013, STAG Industrial bought 10
industrial assets (spanning a total of about 3.1 million square
feet) for roughly $97 million. Further, the company has penned an
acquisition deal for buying a property for around $11 million.
The deal is yet to be accomplished and is subject to a number of
We remain encouraged with STAG Industrial's leasing and
acquisition activities and expect these to enhance the quality of
the company's portfolio and prove accretive to its earnings,
going forward. In particular, the successful execution of the
company's acquisition activity helped it accomplish the buyout of
39 industrial facilities in full-year 2013 for roughly $346
million and also helped in increasing its portfolio square
footage by 30.8%.
Notably, these portfolio enhancement activities depict the
company's focus on portfolio diversification by maintaining a mix
of markets and tenants, which limits its exposure to any single
tenant or geographic location. This strategic act provides better
return and offers protection against volatility, which augurs
well for STAG Industrial.
STAG Industrial presently carries a Zacks Rank #3 (Hold).
However, some better-ranked REIT- Equity Trust - Other stocks
National Health Investors Inc.
Getty Realty Corp.
W. P. Carey Inc.
). All stocks carry a Zacks Rank #1 (Strong Buy).
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