STAG Industrial Inc. STAG

STAG - Pure-Play Industrial REIT

STAG Industrial, Inc. (NYSE: STAG) is a real estate investment trust focused exclusively on the acquisition, development, ownership, and operation of industrial properties throughout the United States. Founded with a clear mission to deliver attractive long-term stockholder returns through disciplined investment in high-quality industrial real estate, STAG has positioned itself as a leading pure-play industrial REIT.

The company’s strategy centers on single-tenant warehouse and distribution facilities, targeting properties that offer attractive returns across CBRE-EA Tier 1 industrial markets. With a portfolio spanning 41 states and approximately 117.6 million rentable square feet, STAG has built a diversified platform designed to capitalize on the growing demand for modern industrial real estate driven by e-commerce and supply chain evolution.

Portfolio Overview

Scale and Diversification

As of March 31, 2025, STAG’s impressive portfolio includes:

597 Buildings across the United States
117.6 Million rentable square feet
41 States providing geographic diversification
$9.9 Billion enterprise value
96.5% occupancy rate demonstrating strong demand

Tenant and Industry Diversification

STAG maintains a well-diversified tenant base with:

No single tenant accounting for more than 2.9% of total annualized base rental revenue
No single industry representing more than 11.3% of total revenue
Diverse industry exposure across logistics, manufacturing, distribution, and e-commerce fulfillment

Business Model Excellence

Single-Tenant Focus

Specialized in single-tenant industrial properties

Strategic Locations

Properties in key logistics and distribution markets

Modern Facilities

Focus on functional, well-located warehouse space

Long-Term Leases

Stable cash flows through extended lease terms

Development Pipeline

Selective development projects for growth

Active Management

Hands-on asset management approach

Investment Strategy

Acquisition Criteria

STAG employs rigorous underwriting standards focusing on:

Market Selection: Targeting CBRE-EA Tier 1 industrial markets with strong fundamentals
Property Quality: Modern, functional facilities with clear sight lines and efficient layouts
Tenant Credit: Focus on creditworthy tenants with stable business models
Location Advantage: Properties in strategic locations with transportation access
Value Creation: Opportunities for operational improvements and lease optimization

Development Program

The company maintains a selective development program:

11 Development Projects as of December 31, 2024
Pre-leasing Strategy: Focus on pre-leased or build-to-suit developments
Market Timing: Disciplined approach based on market conditions and returns
Risk Management: Conservative leverage and careful project selection

Financial Performance

Strong Operating Metrics

Market Cap: ~$6.9 billion
Revenue: $785.41 million (trailing twelve months)
Profit Margin: 31.06%
Return on Equity: 7.15%
Occupancy Rate: 96.5% demonstrating strong tenant demand

Rent Growth Achievement

STAG has demonstrated strong rent growth capabilities:

Straight-line Rent Change: 41.8% growth on new and renewal leases (2024)
Cash Rent Change: 28.3% growth on new and renewal leases (2024)
Consistent Performance: Strong rent growth track record across market cycles

Market Position and Competitive Advantages

Pure-Play Focus

100% focus on industrial real estate

Experienced Team

Senior management with decades of industrial experience

Integrated Platform

Fully integrated acquisition, leasing, and operations

Market Knowledge

Deep understanding of industrial markets

Investment Considerations

Advantages

E-commerce Tailwind: Benefiting from continued growth in online retail and logistics demand
Diversified Portfolio: Geographic and tenant diversification reduces concentration risk
Experienced Management: Proven track record in industrial real estate investment and operations
Strong Occupancy: Consistently high occupancy rates indicating quality assets
Rent Growth: Demonstrated ability to achieve significant rent increases on lease renewals
Balance Sheet Strength: Conservative leverage and access to multiple capital sources
Pure-Play Exposure: Direct exposure to industrial real estate growth trends

Risks

Economic Sensitivity: Industrial demand can be cyclical based on economic conditions
Interest Rate Risk: REITs are generally sensitive to interest rate changes
Supply Chain Disruption: Tenant businesses may be affected by supply chain issues
Competition: Intense competition for quality industrial properties
Development Risk: Construction and development projects carry execution risk
Tenant Concentration: While diversified, loss of major tenants could impact performance
Market Saturation: Some markets may experience oversupply of industrial space

ESG and Sustainability

Environmental Initiatives

STAG is committed to sustainable practices:

Energy Efficiency: Focus on energy-efficient building features and systems
LEED Standards: Incorporating green building standards where appropriate
Carbon Footprint: Initiatives to reduce environmental impact of operations
Sustainable Development: Environmental considerations in new developments

Community Engagement: Supporting local communities where properties are located
Tenant Partnerships: Working with tenants on operational efficiency and sustainability
Workplace Culture: Fostering an inclusive and diverse work environment

Governance Excellence

Board Oversight: Strong corporate governance with independent board oversight
Transparency: Comprehensive reporting and stakeholder communication
Risk Management: Robust risk management and internal controls

Growth Catalysts

Industry Trends

E-commerce Growth: Continued expansion of online retail driving warehouse demand
Supply Chain Reshoring: Trend toward domestic supply chains boosting industrial demand
Last-Mile Delivery: Growing need for distribution facilities near population centers
Automation: Modern facilities designed for automated logistics operations

Strategic Opportunities

Market Expansion: Selective expansion into new markets with attractive fundamentals
Development Pipeline: Continued development of modern, efficient facilities
Acquisition Opportunities: Consolidation trends in industrial real estate
Technology Integration: PropTech and data analytics to enhance operations

Dividend Information

STAG provides regular quarterly dividend payments:

Current Dividend Yield: Approximately 4.10%
Dividend History: Consistent quarterly payments with periodic increases
Payout Strategy: Sustainable payout ratio based on funds from operations (FFO)

For current and accurate dividend information:

STAG Investor Relations: Official Dividend Information
Quarterly Payments: Dividends typically declared and paid quarterly
SEC Filings: Current financial information available through SEC filings

Analyst Coverage

Recent analyst sentiment shows positive outlook:

Buy Rating: Argus maintains BUY rating with $40 price target
Strong Fundamentals: High management rating and safety subrating
Growth Potential: High growth subrating based on market opportunities