We hate spam as much as you do. This highly diversified and sophisticated tenant base results in reduced risks and stable future cash flows. In fact, the company recently provided a business update and raised its 2020 same-store NOI outlook from 0.75%-1.25% to 1.25%-1.75% due to strong demand for the company’s assets. Industrial REITs generally offer low dividend yields because they are seen as a safe investment option for long term investors. This may result in higher vacancies at STAG’s properties which would cause a decline in rentals. Approximately 43% of STAG’s portfolio handles e-commerce activity. NYSE: STAG. STAG has a weighted average lease term of 5.1 years and weighted average rent of $4.51 per square foot. Despite a low risk profile, the company provides an attractive dividend yield as well as capital appreciation potential to investors. ft. falls in the lower quartile of the industrial REIT sector. COVID-led slowdown: A prolonged economic slowdown in the post-pandemic world may lead to a decline in consumer spending even in the e-commerce channel. As of 30th September 2020, the company owned 462 buildings (384 warehouses, 70 light manufacturing buildings and 8 office buildings) across 38 states with a total square footage of 92.3 million sq. (Source: “Stag Industrial Announces Common And Preferred Stock Dividends,” Cision PR Newswire, July 9, 2020. Of course, there will still be uncertainty going forward. 617-936-1348. The trust became publicly-traded in 2011 after spinning off from its predecessor, STAG Capital Partners, which was formed in 2004. They compete directly with Prologis in the industrial REIT sector. Stag Industrial (STAG) Stag Industrial is a real estate investment trust specializing in industrial properties. STAG Industrial: A Monthly Dividend Industrial REIT with a Disciplined Management Team. Stag Industrial has a unique business model that sets them apart from their real estate competitors. Stag Industrial, Inc. (NYSE:STAG) Founded in 2010, Stag Industrial is a real estate investment trust focused on single-tenant industrial properties in the United States. STAG has a history of consistently paying dividends since its IPO and the dividends have grown at a CAGR of 4.2% since 2012. But management has already declared monthly dividends of $0.12 per share for August, September, and October. STAG boasts a robust business model with stable and secure recurring cash flows. Industrial companies like the ones that STAG counts as tenants tend to be highly cyclical business. (Source: “Dividends,” STAG Industrial Inc, last accessed August 10, 2020.). The portfolio looked solid, too. (Source: “2020 Spring/Summer,” STAG Industrial Inc, last accessed August 10, 2020.). In recent quarters, while real estate sub sectors such as office and retail have struggled as a result of the pandemic, selective industrial REITs have emerged as outperformers primarily because of the growth in e-commerce. STAG is a real estate investment trust focused on the acquisition and operation of single-tenant, industrial properties throughout the United States. Source: STAG Industrial, Source: Seeking Alpha. According to Benjamin S. Butcher, STAG CEO, during the Q3 2020 earnings call: “There was such a mad rush as the pandemic came on, but I think we're still seeing a lot of people position themselves for the further increases in e-commerce activity that will ensue as we move and hopefully out of the pandemic era, but certainly as we continue through the pandemic era.”. The unemployment rate quickly shot up, and as people stayed at home, the economy slowed down dramatically. 8.2 Iron Mountain – Data Center, yield 7,30% paid quarterly. https://www.incomeinvestors.com/wp-content/uploads/2020/08/warehouse-and-pallets-AA3693G-1-150x150.jpg, STAG Industrial Announces Second Quarter 2020 Results, Supplemental Information Unaudited Second Quarter 2020, Stag Industrial Announces Common And Preferred Stock Dividends, STAG Industrial Inc. (STAG) CEO Ben Butcher on Q2 2020 Results – Earnings Call Transcript. In the second quarter, the REIT generated $117.6 million of total revenue, up 22% from the same quarter a year ago. In total, Stag currently owns more than 450 buildings across nearly 40 states. Of course, REITs are considered income investments. At March 31, 2020, Philadelphia had the highest concentration of any market at 8.5% of ABR; the company's top 10 markets only comprise 47.6% of ABR. The company has a well-diversified tenant base spread across industry verticals including auto components, e-commerce, freight & logistics, and building products, to name a few. STAG Industrial, Inc. (NYSE: STAG) is a real estate investment trust focused on the acquisition and operation of single-tenant, industrial properties throughout the United States. Walt Disney Co: Will Disney Stock Bring Back Its Dividend? The neat thing about warehouses is that they are an essential part of e-commerce. Additionally, the company has been able to achieve asset growth at a controlled leverage ratio as indicated in the chart below. Headquartered in Boston, STAG Industrial is a real estate investment trust (REIT) that owns, operates, and acquires single-tenant industrial properties in the United States. STAG has consistently reported an increase in FFO for the past few years. Check out our privacy policy. Stag is laser-focused on credit-checking its tenants before closing a lease on one of its single-tenant industrial properties. They focus heavily in retailers, being Wal-mart one of the top tenants. In the second quarter of 2020, STAG Industrial generated core funds from operations (FFO) of $0.47 per share, which represented a 4.4% increase year-over-year. ft. of assets for approximately $298M. It helps that STAG Industrial has Amazon.com, Inc. (NASDAQ:AMZN), by far the most dominant e-commerce company in the U.S., as its biggest tenant. Additionally, increased demand for suburban housing in the post-pandemic world will continue to support the long-term secular growth trend in suburban areas. Stag Industrial operates 462 buildings across 38 states. Its portfolio includes exposure to several industry verticals and less than 25% of leases expire through 2022. This has helped the company consistently grow its rental rates over the last few years. It is important to note that dividend growth in the last few years has been slower despite strong FFO growth. It helps that STAG Industrial has Amazon.com, Inc. (NASDAQ:AMZN), by far the most dominant e-commerce company in the U.S., as its biggest tenant. Between October 2020 and December, 7th 2020, it has acquired 4 million sq. You can opt-out at anytime. By targeting this type of property, STAG has developed an investment strategy that helps investors find a powerful balance of income plus growth. (Source: “STAG Industrial Announces Second Quarter 2020 Results,” STAG Industrial Inc, July 28, 2020.). It is focused on single-tenant industrial properties and has ~450 buildings across 38 states in the United States. (Source: “Supplemental Information Unaudited Second Quarter 2020,” STAG Industrial Inc, op.cit.). jboehning@stagindustrial.com. STAG Industrial is an owner and operator of industrial real ... Its largest customer is Amazon.com , which accounts for 3.8% of STAG's business. Resultantly, the company’s dividend cushion has improved. It operates as a REIT and distributes the majority of its earnings to its unitholders through monthly dividends. The properties, which total 91.8 million square feet, were leased to 422 tenants in 38 states. 617-936-1361. This gives STAG a natural tailwind from the rise of e-commerc… STAG Industrial is a REIT that specializes in industrial commercial real estate. If you're looking for a steady stream of income in retirement or a regular flow of cash to keep your nest egg growing, a monthly dividend stock could be a good fit. As per eMarketer research, US e-commerce sales as a percentage of total retail sales will reach 14.5% in 2020, increasing to 19.2% by 2024. (Source: STAG Industrial Inc, July 28, 2020, op. Scott Birdsong. This secular shift from brick-and-mortar stores to online retail has been further accelerated in the current pandemic. STAG Industrial stands to benefit from numerous trends, including the expansion of e-commerce needs and the increased redundancy of supply chains. Its largest tenant, Amazon, represents only 1.9% of ABR, and the top 10 tenants comprise only 11.3% of ABR. Monmouth: Attractive 4.0% Yield Industrial REIT, Micron Technology: A Cyclical Growth Stock with Multiple Long-Term Catalysts, Blue Harbinger Investment Research, 115 E. Ogden Ave, Ste 117, Naperville, IL 60563, United States, STAG Industrial: Attractive 4.7% Yield REIT. STAG Industrial (STAG) is a small but fast-growing industrial REIT that went public in 2011 but has existed since 2003. Indeed, STAG kept making acquisitions, buying nine properties in the first quarter for $119 million. None of their top 10 tenants breaks 2.0% of revenue in their portfolio and the top ten combined only add up to 11%. STAG collected 99% of its rental income in March and 90% of its rental income in April. In fact, Amazon.com (NASDAQ: AMZN) is STAG’s biggest tenant, representing 2.5% of its annualized base rental revenue. ), Moreover, they continue to expect STAG Industrial to earn between $1.80 and $1.88 per share in core FFO for full-year 2020, meaning the dividend payout would be well covered. However, investors must note that suburbs have remained one of the fastest growing economic areas. Trading at $33.92 per share, STAG Industrial Inc offers an annual dividend yield of 4.9%. In this report, we analyze the company’s income profile, growth as well as dividend prospects and finally conclude with our opinion on investing. STAG Industrial is now facing a headwind due to the recession caused by the coronavirus. Here's why. Source: STAG Industrial The top 10 tenants account for just 12% of the company’s annualized base rent. https://www.incomeinvestors.com/why-stag-industrial-top-monthly-dividend-stock/57066/, This Number Shows Why STAG Industrial Is a Top Monthly Dividend Stock. Brian Reilly. STAG is an attractive industrial REIT with a big dividend yield and the potential for higher growth due to its higher-cap rate properties relative to other industrial REITs. Stag Industrial isn’t as large as Prologis, but they do have much higher dividend payments. Likewise, STAG has strong tenant diversification. STAG boasts a robust business model with stable and secure recurring cash flows. Having said that, we believe the economy will have to get much worse than it is now for the sector risks to materialize. The top 10 tenants account for just 12% of the company’s annualized base rent. STAG Industrial (STAG, $30.40) invests in warehouses across the country and has been a major beneficiary of e-commerce trends. STAG operates in the growing industrial REITs space where demand has seen a steady rise over the last few years primarily driven by growth in e-commerce. Stag Industrial has 72 employees at their 1 location and $405.95 M in annual revenue in FY 2019. As of June 30, the company’s portfolio consisted of 376 warehouses and 70 light manufacturing facilities. In fact, STAG’s top 10 tenants together account for just 12% of its yearly base rent. STAG Industrial Acquires Three Warehouse Distribution Properties For $61 Million. This industrial REIT avoids top-tier markets, which it says is the better way to play the industrial property market. Check out our privacy policy. Enterprise. It also offers a 4.7% dividend yield, paid monthly. For example, the specific industrial REIT we review in this article has consistently expanded its asset base since its IPO in 2011 and is well placed to grow in the years ahead (through planned acquisitions and rental accretions). At the end of June, STAG Industrial’s portfolio was 97% leased, with a weighted average lease term of 5.1 years. breilly@stagindustrial.com. Source: STAG Industrial’s Investor presentation. As a result, it has incurred credit losses that have … STAG Industrial, Inc. One Federal Street, 23rd Floor; Boston, MA 02110; Tel: 617-574-4777; 1919 McKinney Avenue, Suite 100; Dallas, TX 75201 This is an entirely free service. In Q2 2020, while several REIT sectors saw rent deferrals, STAG was able to collect 98% of all rental payments. Without a physical storefront, online vendors usually keep their inventory in a warehouse. The shift has created additional demand for warehouses and other supply chain assets to serve as fulfillment centers for faster, more reliable, last mile delivery to customers. But if you want to earn monthly dividends, this company offers one of the most reliable payouts in today’s market. You can opt-out at anytime. Many investors are drawn to dividend stocks because they offer a regular flow of cash that doesn't depend on the market going up. Amazon is STAG’s single largest tenant and accounts for 2.9% of annualized base rent. Moreover, a tenant survey last year showed that 43% of the REIT’s portfolio handled e-commerce activity. cit.). We hate spam as much as you do. Even though STAG Industrial has delivered a very impressive number in terms of rent collection, it also needs a durable dividend policy for it to be worth considering for income investors. It will acquire vacant buildings or those with near-term lease expirations and leverage its leasing capabilities to secure new tenants. Lument Finance Trust Inc: Little-Known Stock Now Yields 9.8%. The company has a well-diversified client base primarily comprised of large creditworthy companies which helps STAG generate safe, stable, growing and predictable cash flows. With these metrics, I wouldn’t be surprised to see the company continue to generate a predictable stream of rental income and pass that income to shareholders through monthly dividend payments. In Q2 2020, while several REIT sectors saw rent deferrals, STAG was able to collect 98% of all rental payments. According to a CBRE report, for every $1 billion in additional e-commerce sales, the industrial market would need to deliver 1.25 million square feet of warehouse space to meet this demand. 8.1 STAG Industrial – Warehouses and Industrial Properties, yield 4,60% paid monthly. However, the effect of the pandemic on the REIT has been limited so far thanks to the high credit profile of its tenants. sbirdsong@stagindustrial.com. The company’s largest tenant is Amazon (Nasdaq: AMZN), and even it makes up only 2.9% of STAG’s yearly base rent. Considering that the company paid three monthly dividends totaling $0.36 per share for the quarter, its core FFO covered the payout with ease. Enviva Partners LP: This 6.3% Yielder Is a Bet for the Future, TCG BDC Inc: Why This 9.8% Yielder Might Actually Pay 11.1%. Despite the difficult economic environment in recent quarters, STAG has continued expanding its asset portfolio. Thomson Reuters Corp: The Most Overlooked Dividend Growth Stock on the Market? No credit card required. No credit card required. The company owns about 400 industrial properties which are located in 38 states and leased to over 350 tenants. Again, keep in mind that we are in a period when a lot of companies have been reporting substantial year-over-year declines in their financials. In this context, STAG’s 4.7% dividend yield is significantly above the industry average as well as its nearest peers and offers an attractive investment opportunity in our opinion for income-oriented investors. 4060 Fairview Industrial Drive, Salem, OR 97302: Portland: Manufacturing: 1: 108,000: 4050 Fairview Industrial Drive, Salem, OR 97302: Portland: Manufacturing: 1: 47,900: 913 Airport Road, Salisbury, NC 28147: Charlotte: Distribution Warehouse: 1: 288,000: 2055 Dublin Drive, San Diego, CA 92154: San Diego: Distribution Warehouse: 1: 205,440: 21399 Torrence Avenue, Sauk Village, IL 60411 Same-store cash net operating income came in at $73.9 million for the quarter, up 2.1% compared to the second quarter of 2019. (Source: “Supplemental Information Unaudited Second Quarter 2020,” STAG Industrial Inc, last accessed August 10, 2020.). See insights on Stag Industrial including office locations, competitors, revenue, financials, executives, subsidiaries and more at Craft. The company’s focus on single-tenants helps secure larger and well-established tenants. STAG’s property portfolio is highly diversified across geographies, tenant base, industries, and lease terms. That’s the percentage of second-quarter rent the company collected as of July 28. We believe dividend growth may strengthen marginally over the next few years. 214-929-3013. The reason is simple: the COVID-19 pandemic resulted in the closure of numerous businesses. Top REIT #4: STAG Industrial, Inc. (STAG) Dividend Yield: 4.5%; STAG Industrial is the only pure-play industrial REIT active across the entire domestic industrial real estate market. © Copyright 2021: Income Investors. AS OF MARCH 31, 2020 Grant Matthews gmatthews@stagindustrial.com 817-937-2323 To see why this REIT is special, here’s a number: 98%. STAG Industrial, Inc. (NYSE: STAG) is a real estate investment trust focused on the acquisition and operation of single-tenant, industrial properties throughout the United States. Most people have never heard of STAG Industrial Inc (NYSE:STAG). Having said that, we believe that the secular growth in e-commerce will absorb elevated supply growth in warehouses over the medium to long term. As per the latest data, 55% of the tenants are publicly rated and 31% of the tenants are rated “investment grade.” No part of this document may be used or reproduced in any manner or means, including print, electronic, mechanical, or by any information storage and retrieval system whatsoever, without written permission from the copyright holder. Luckily, STAG Industrial does not own any of the properties I just mentioned. In 2019, e-commerce accounted for 11% of total retail sales in the United States. Meanwhile, e-commerce makes up 40% of STAG’s portfolio. STAG Industrial, Inc. (NYSE: STAG) is a real estate investment trust focused on the acquisition and operation of single-tenant, industrial properties throughout the United States. 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