STAG Industrial, Inc. (STAG), a real estate investment trust (REIT), has recently acquired a warehouse and distribution facility for approximately $9.3 million. The property spans 200,000 square feet and is located near Green Bay Wisconsin. With this transaction, the company's year-to-date tally for acquisitions has surged to $174 million.
The building is currently fully leased to an unnamed logistics company. 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 had acquired two industrial buildings for $9.2 million in August, 2012. Spanning 411,994 square feet, the properties are located in Simpsonville, South Carolina. At the same time, the company continues the diversification of its portfolio to maintain a mix of markets and tenants which in turn will limit its exposure to any single tenant, industry, or geographic location.
STAG Industrial is focused on the acquisition, ownership and management of single-tenant industrial properties throughout the United States. In particular, 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 130 properties in 29 states with approximately 22.3 million rentable square feet.
STAG Industrial currently retains a Zacks #2 Rank, which translates into a short-term Buy rating. We have a long-term Neutral recommendation on the stock. One of its competitors, First industrial Realty Trust Inc (FR) retains a Zacks# 3 rank, which translates into a short-term Hold rating.
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