The Stuff You Buy Comes From Somewhere

Do you shop at or Target or Wayfair? I shop at Amazon and sometimes at Target. Amazon needs places to store stuff so that orders can be filled. One REIT that works behind the scenes for Amazon and other companies is STAG Industrial. STAG is a mid-cap industrial sector REIT that pays a monthly dividend. Other customers are Kellogg’s, FedEx, Tesla, Pirelli, Wayfair, Target, Samsung and Starbucks, to name a few. STAG is an owner and operator of industrial real estate. It is also a wonderful income investment. Land and buildings are wonderful platforms for earning dollars, especially when those properties are in desirable locations.

The following slides tell a story about STAG as an investment. Some important elements include:

  1. STAG has 409 properties in 38 states. Diversification and spread is very good.
  2. Their dividend has been paid monthly for years. Show me the money!
  3. The dividend payout ratio is rational and sensible at 77.3% and the yield is 5.3%.
  4. Dividend growth is slow-and-steady for the last 8 years.
  5. The Seeking Alpha Author and Sell Side Ratings are encouraging. Read what they say if you want to learn more.
  6. Their list of clients and top ten clients is impressive. Amazon is number one.
  7. The portfolio spans 60+ markets and 45+ industries (diversified customer and geographic base).
  8. Less than 35% of the leases expire in the next three years.
  9. The largest tenant is only 2% of the total (If they lose a tenant it isn’t a threat to the business.)
  10. The REITRATING is a solid 8.5. The AFFO is solid.
STAG has presence in most of the states.
STAG has a very good dividend story. The numbers fit my model.
Most Seeking Alpha authors see STAG as a buy.
Brokers like STAG as an investment too.
Their customer base is broad and are well-known brands.
The REITRating is 8.5 and they are very diversified.

Here is a link to STAG’s Investor web page: STAG