Back to top

Analyst Blog

Zacks Equity Research

STAG Industrial on Acquisition Binge

STAG FR

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

STAG Industrial, Inc. (STAG - Snapshot Report), a real estate investment trust (REIT), has recently acquired three industrial buildings from an unnamed seller for $19.8 million. Spanning 518,838 square feet on an aggregate, two of the acquired properties are located in Mebane, North Carolina, while the other is located in Dallas, Georgia.

The acquired portfolio comprises of two warehouses and distribution facilities, and a light manufacturing facility. The properties are currently fully leased to Armacell LLC, which manufactures and distributes foam insulation products for mechanical insulation, air conditioning and refrigeration, duct work, and various other commercial and residential applications.

Earlier, during second quarter 2012, STAG Industrial had acquired a portfolio of 12 industrial buildings totaling 2.3 million square feet for $74.9 million. Consequently, total portfolio square footage increased to 20.4 million – a 49% rise since its initial public offering in April 2011. With the present transaction, the year-to-date tally for total acquisition cost has reached approximately $165 million.

Since its inception, STAG Industrial has diligently acquired individual Class B, single-tenant industrial properties throughout the U.S. The company specifically focuses on the secondary markets with purchase prices as low as $5 million.

The strategic investment objectives of the company hinge upon the fact that single-tenant properties usually require less expenditure to lease and operate than the multi-tenant ones. In addition, Class B industrial properties tend to have higher current returns and lower volatility than their Class A counterparts. Furthermore, secondary markets also generally have less occupancy and rental rate volatility than primary markets.

We presently have a Neutral recommendation for STAG Industrial, which currently has a Zacks #2 Rank that translates into a short-term Buy rating. We also have a Neutral recommendation and a Zacks #3 Rank (short-term Hold rating) for First industrial Realty Trust Inc. (FR - Snapshot Report), one of the competitors of STAG Industrial.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 33.54 +9.00%
INTERNATIONA ICAGY 33.09 +4.72%
NOAH HOLDING NOAH 13.91 +4.67%
CHINA DISTAN DL 14.79 +4.30%
VALEO SA SPO VLEEY 67.91 +3.95%