(STAG) STAG Industrial - Ratings and Ratios

STAG Industrial, Inc. (NYSE: STAG) is a real estate investment trust (REIT) specializing in the acquisition, ownership, and operation of industrial properties across the United States. The company focuses on high-quality industrial assets, including warehouses, distribution centers, and light manufacturing facilities, strategically located in strong markets with robust demand for industrial space. STAG Industrial operates across 41 states, with a portfolio of 591 buildings totaling approximately 116.6 million rentable square feet as of December 31, 2024. The company also has 11 development projects underway, expanding its footprint in key industrial markets.

STAG Industrial is structured as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, allowing it to avoid federal income tax on distributed earnings. The company distributes a significant portion of its taxable income to shareholders, maintaining compliance with REIT requirements. While federal tax obligations are minimized, STAG Industrial remains subject to state, local, and property taxes, as well as federal taxes on undistributed income. This tax-efficient structure is a cornerstone of its investment appeal.

As of December 31, 2024, STAG Industrials portfolio was 96.5% leased, reflecting strong demand for industrial space. The company maintains a diversified tenant base, with no single tenant accounting for more than 2.9% of annualized base rental revenue and no single industry representing more than 11.3% of revenue. This diversification reduces exposure to sector-specific risks and enhances the stability of cash flows. The operating portfolio was 97.3% leased, demonstrating effective asset management and tenant retention strategies.

STAG Industrial has delivered strong leasing performance, with straight-line rent growth of 41.8% in 2024 and 44.0% in 2023 on new and renewal leases. Cash rent growth was 28.3% in 2024 and 31.0% in 2023, reflecting rising market rates and the companys ability to negotiate favorable terms. These metrics highlight the companys pricing power in a competitive industrial real estate market.

Looking ahead, STAG Industrials stock price is expected to remain stable, supported by its strong operational performance and dividend yield. Based on technical indicators, the stock is trading near its 20-day moving average of $33.16, with support at $33.00 and resistance at $34.50. The average true range (ATR) of 1.14 suggests moderate volatility. From a fundamental perspective, the companys forward P/E ratio is not available, but its current P/E of 31.88 reflects market expectations for growth. The price-to-book (P/B) ratio of 1.79 indicates that the stock is fairly valued relative to its book value. The price-to-sales (P/S) ratio of 8.22 highlights the premium investors are willing to pay for exposure to the industrial real estate sector. With a return on equity (RoE) of 5.47%, STAG Industrial is positioned to deliver steady returns in a growing industrial market.