STAG Industrial, Inc. (STAG), a real estate investment trust (:REIT), has recently acquired a portfolio of 31 industrial buildings for approximately $129 million from an unnamed seller.
The portfolio totals to approximately 4.3 million square feet of warehouse and distribution space spread across 10 different states. The buildings are leased to 29 different tenants and are 91% leased. With this transaction, the company's year-to-date acquisition tally has surged to $343 million. Overall square footage of STAG Industrial has increased by 63% since year-end 2011.
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. In October 2012, the company had acquired 13 fully leased industrial facilities totaling approximately 3.1 million square feet.
STAG Industrial owns and manages single-tenant industrial properties throughout the United States. The company is currently focused on the acquisition of Class B, single tenant industrial properties primarily in secondary markets. Presently, the company’s portfolio consists of 165 properties in 31 states aggregating approximately 27.8 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.
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