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STAG Has All Of The Ingredients Of Something Special


  • I consider messaging a critical aspect to my job as a REIT analyst.
  • Today I’m going to use the same messaging to convey the premium brand of STAG Industrial and why I remain a loyal shareholder in the Boston-based REIT.
  • STAG is not engineering the yield to deceive investors, in fact, it’s quite the opposite.

I’m sure that when Warren Buffett’s company Berkshire Hathaway (BRK.A) acquired See’s Candy in 1972 he was thinking to himself, “your premium brand had better be delivering something special, or it's not going to get the business.”

Who knows, Buffett may have also been thinking about another premium brand, STORE Capital (STOR), after Berkshire Hathaway announced it had picked up 9.8% ownership in the Scottsdale-based REIT (for $377 million).

This is a timeless quote from the Oracle of Omaha that is relevant to the REIT sector, especially after the recent STOR announcement, and it suggests that Berkshire Hathaway just landed a superior REIT with the best dividend growth potential in the Net Lease sector.

Many of you know me for my humility, not for arrogance, so when I tell you that I was not surprised by the STOR news because I prompted an upgrade from a BUY to a STRONG BUY, don’t get angry. On May 17th, I wrote

STORE is forecasted to generate strong AFFO/share growth and when you combine that with a modest payout ratio, you can see that there is more inside of STORE. I am upgrading shares in STORE from a BUY to a STRONG BUY.

I consider messaging a critical aspect to my job as a REIT analyst, and I don’t take an upgrade from BUY to STRONG BUY lightly. As far as I’m concerned, the recent Berkshire Hathaway announcement is simply a validation that my messaging is correct.

So today, I’m going to use the same messaging to convey the premium brand of STAG Industrial (NYSE:STAG) and why I remain a loyal shareholder in the Boston-based REIT. Who knows, maybe Buffett is still shopping for a few good REITs and if STAG is not on the list, it should be.

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The Evolution

This article was written by

Brad Thomas profile picture
Leader of iREIT on Alpha
The #1 Service For Safe and Reliable REIT Income

Brad Thomas is the CEO of Wide Moat Research ("WMR"), a subscription-based publisher of financial information, serving over 100,000 investors around the world. WMR has a team of experienced multi-disciplined analysts covering all dividend categories, including REITs, MLPs, BDCs, and traditional C-Corps.

The WMR brands include: (1) iREIT on Alpha (Seeking Alpha), and (2) The Dividend Kings (Seeking Alpha), and (3) Wide Moat Research. He is also the editor of The Forbes Real Estate Investor

Thomas has also been featured in Barron's, Forbes Magazine, Kiplinger’s, US News & World Report, Money, NPR, Institutional Investor, GlobeStreet, CNN, Newsmax, and Fox. 

He is the #1 contributing analyst on Seeking Alpha in 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2022 (based on page views) and has over 108,000 followers (on Seeking Alpha). Thomas is also the author of The Intelligent REIT Investor Guide (Wiley) and is writing a new book, REITs For Dummies. 

Thomas received a Bachelor of Science degree in Business/Economics from Presbyterian College and he is married with 5 wonderful kids. He has over 30 years of real estate investing experience and is one of the most prolific writers on Seeking Alpha. To learn more about Brad visit HERE.

Analyst’s Disclosure: I am/we are long APTS, ARI, BRX, BXMT, CCI, CCP, CHCT, CLDT, CONE, CORR, CUBE, DLR, DOC, EXR, FPI, GMRE, GPT, HASI, HTA, IRM, JCAP, KIM, LADR, LTC, LXP, O, OHI, PEB, PK, QTS, ROIC, SKT, SNR, SPG, STAG, STOR, STWD, TCO, UBA, WPC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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