STAG Industrial Inks Renewal Lease for 319K Square Feet

Zacks

STAG Industrial, Inc. STAG recently announced that it has inked a 319,000-square foot renewal lease deal for a distribution warehouse building in Orangeburg, SC. This deal is likely to be accretive for the Boston, MA-based real estate investment trust (“REIT”), going forward.

Notably, in early May, STAG Industrial signed a new lease deal for 474,000 square feet at a distribution warehouse building in Duncan, SC. The deal, including the renewal of 300,000 square feet and expansion of 174,000 square feet for a pharmaceutical manufacturer, has a term of over seven years. These new as well as renewal lease deals are expected to keep the REIT’s growth momentum alive in the future.

STAG Industrial is engaged in acquisition and operation of single-tenant industrial properties throughout the country. In first quarter of 2015, the company executed leases comprising around 549,133 square feet. Further, the company achieved a retention rate of 64.1% for 1.5 million square feet of leases expiring in the quarter and 66.4% for 4.1 million square feet over the trailing 12 months. The company also recorded cash and GAAP rent growth of 6.7% and 9.6%, respectively, for the quarter’s renewals.

STAG Industrial currently carries a Zacks Rank #3 (Hold).

Investors interested in the REIT industry may consider stocks like Hudson Pacific Properties, Inc. HPP, Strategic Hotels & Resorts, Inc. BEE and Arbor Realty Trust Inc. ABR. All these stocks sport a Zacks Rank #1 (Strong Buy).

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