STAG Industrial: Price Level Seems Attractive

Summary

• STAG Industrial is a REIT with a solid customer base, with Amazon as its largest tenant. The company reported full-year revenue growth of 16.9% and adjusted FFO up 7.3%.
• STAG expects e-commerce warehouses to grow along with the industry's growth, as only 15% of retail sales are through e-commerce.
• STAG expects 2023 same-store cash NOI growth between 4.5% and 5%, and it expects to acquire properties worth between $300M and $700M at a cap rate between 5.75% and 6.5%.
• STAG pays a good dividend with a current yield of 4.7%, and 8 analysts expect the dividend to rise 4% next year.
• STAG stock's valuation looks favorable if we compare its price to funds from operations ratio to its historical figures. Therefore, STAG Industrial is buy-worthy.

Kwarkot

Introduction

STAG Industrial (NYSE:STAG) is a REIT that leases properties to tenants in industries such as manufacturers, distributors, and e-commerce. One well-known client is Amazon; Amazon is also the largest tenant with 3% of total ABR.

REITs pay

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.