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STAG Updates August Transactions - Analyst Blog

Posted
9/4/2013 7:25:00 PM
By: Zacks.com
Referenced Stocks:DEI;HIW;SLG;STAG

STAG Industrial, Inc. ( STAG ), a real estate invest trust (REIT), recently announced its leasing and acquisition activity for the month of August. We believe the deals are aimed at securing steady revenue growth opportunities and improving the company's portfolio quality.

Leasing

STAG Industrial inked one lease renewal deal for around 251,000 square feet of space at a Salem, Ohio-based building. The renewed lease comprises 10-year lease extension and building expansion agreements.

With this transaction, year to date, STAG Industrial has penned 7 renewal leases and 11 new and expansion leases for a total of 2.2 million square feet of space.

Acquisitions

STAG Industrial bought 2 warehouse and distribution facilities (totalling 1.2 million square feet) for roughly $53.7 million.  These 100% leased properties are located near Milwaukee, WI and Baltimore, MD.

Consequently, year to date, STAG Industrial has acquired 27 industrial facilities (about 5.5 million square feet) for approximately $234 million .

Our Take

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. Concurrently, the company is also focusing on portfolio diversification by maintaining a mix of markets and tenants, which limits its exposure to any single tenant or geographic location. This provides higher return and offers protection against volatility, which augurs well for STAG Industrial.

STAG Industrial currently holds a Zacks Rank #3 (Hold). Better performing REITs include Douglas Emmett Inc ( DEI ), Highwoods Properties Inc. ( HIW ) and SL Green Realty Corp. ( SLG ). All these stocks carry a Zacks Rank #2 (Buy).



DOUGLAS EMMETT (DEI): Free Stock Analysis Report

HIGHWOODS PPTYS (HIW): Free Stock Analysis Report

SL GREEN REALTY (SLG): Free Stock Analysis Report

STAG INDUSTRIAL (STAG): Free Stock Analysis Report

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