STAG Industrial: This Is The Buying Opportunity You Have Been Waiting For

Sep. 28, 2022 8:20 AM ETSTAG Industrial, Inc. (STAG)EGP, FR, PLD, PLDGP, WPC26 Comments
Stefan Redlich profile picture
Stefan Redlich
23.65K Followers

Summary

  • As inflation and interest rates are soaring and markets selling off, STAG Industrial presents an attractive opportunity.
  • The company is well-equipped for a period of sustained inflation and offers long-term secular growth drivers.
  • STAG Industrial has been punished this year with the stock down a whopping 40% YTD and its yield eclipsing 5% again.
  • A recession is almost guaranteed and stagflation is expected. STAG's long-term contracts with build-in escalators and its strong balance sheet will help it weather the storm.

Packing Stations in Fulfillment Center

halbergman

The U.S. economy is heading towards a recession, interest rates are sharply on the rise and expected to hit above 4.5% by the end of the year, inflation is in the 9% area and the 2-year Treasury is yielding in excess of 4%.

Chart
Data by YCharts

Leasing Activity

Leasing Activity 2022 YTD (Seeking Alpha)

STAG Industrial Debt Maturity Ladder

STAG Industrial Debt Maturity Ladder (Investor Relations)

How STAG Industrial creates value

How STAG Industrial creates value (Investor Relations)

Tenant Diversification

Tenant Diversification (STAG Industrial Investor Relations)

Commercial Real Estate Activity

Commercial Real Estate Activity (Seeking Alpha)

Industrial Supply and Demand

Industrial Supply and Demand (Nareit)

STAG Dividend Growth

STAG Dividend Growth (SeekingAlpha)

This article was written by

Stefan Redlich profile picture
23.65K Followers
I am working as a Business Analyst and Data Engineer in Germany and have started to build up a portfolio focused on Dividend Growth, both on the high and low-end yield spectrum. Primary focus is on Blue Chips with long-reaching dividend track records. I have been investing for 2 years and have been standing on the sidelines for way too long before. I love developing spreadsheets in Google and Excel to analyze financial performance and integrate these two sources with each other!Happy to connect on the various channels!

Disclosure: I/we have a beneficial long position in the shares of STAG either through stock ownership, options, or other derivatives. 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.

Additional disclosure: I am not offering financial advice but only my personal opinion. Investors may take further aspects and their own due diligence into consideration before making a decision.

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Comments (26)

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