STAG Industrial, Inc. (STAG), a real estate investment trust (:REIT), has recently announced its decision to offer 7.3 million shares to enhance its liquidity. The company also decidedto grant the underwriters a 30-day option to purchase up to an additional 1.1 million shares to cover the over-allotment options.
STAG Industrial intends to use the net proceeds generated from the offering to fund current as well as future acquisitions, to repay debt under its secured corporate revolving credit facility, and for general working capital purposes.
Recently, STAG Industrial hiked its annual dividend from the current rate of $1.04 per share to $1.08 per share. This translates into a 3.8% annual increase and a payout of 27 cents per share on a quarterly basis. The increased dividend will be payable on July 13, 2012 to all common stockholders of record as of June 29, 2012.
STAG Industrial reported first quarter 2012 core fund from operations (:FFO) of $7.1 million or 30 cents per share compared with $5.3 million or 23 cents per share in the year-earlier quarter. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
By the end of first quarter 2012, the company had approximately $337 million of debt outstanding with an average term of 4.0 years. At quarter-end, the company had $26 million remaining under its revolving credit facility with a cash balance of $18.5 million.
STAG Industrial is focused on the acquisition, ownership and management of single-tenant industrial properties throughout the United States. The company’s portfolio consists of 114 properties in 29 states with approximately 19.2 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) also carries a Zacks #2 Rank
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