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STAG Industrial Acquires Assets

Zacks Equity Research

STAG Industrial, Inc. (STAG), a real estate investment trust (:REIT), has recently acquired two industrial buildings for $ 9.2 million. Spanning 411,994 square feet, the properties are located in Simpsonville, South Carolina. With the acquisition, the year-to-date tally has surged to $145 million.

The industrial buildings are primarily leased to Lanxess Corporation. Through this strategic initiative, the company expects to enhance its portfolio quality and expects it to be accretive to earnings going forward.

Despite the challenging economic environment, STAG Industrial has been very active on the acquisition front.  Earlier in the second quarter 2012, the company completed the acquisitions of 12 properties for $74.9 million. With these acquisitions the company added 2.3 million square feet to its portfolio.

STAG Industrial reported second quarter 2012 core funds from operations (:FFO) of $6.2 million or 32 cents per share, compared with $4.8 million or 30 cents in the year-earlier quarter.

STAG Industrial is focused on the acquisition, ownership and management of single-tenant industrial properties throughout the United States. The company is focused on the acquisition of Class B, single tenant industrial properties primarily in secondary markets. Presently, the company’s portfolio consists of 126 properties in 29 states with approximately 21.6 million rentable square feet.

STAG Industrial currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We have a long-term Neutral recommendation on the stock. One of its competitors, First industrial Realty Trust Inc (FR) also retains a Zacks #3 Rank.

Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and other non-cash expenses to net income.

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