Stag Industrial’s Q4 Profit and Sales Seen Edging Down Despite Industry Tailwinds, BMO Capital Markets Analyst Notes Robust Backdrop for Real Estate.
February 15, 2023
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Stag Industrial ($NYSE:STAG) is a U.S.-based real estate investment trust (REIT) that specializes in single-tenant industrial properties. Eric Borden, an analyst from BMO Capital Markets, recently commented on the advantageous environment for industrial real estate and its potential to benefit Stag. Borden noted that while tenant demand was already strong before the pandemic, the need for e-commerce storage and fulfillment centers has only increased during the pandemic. He went on to stress that the industrial real estate sector is well placed to benefit from structural long term changes as companies become more reliant on supply chains. The analyst further highlighted Stag’s ability to make strategic investments with a focus on acquiring buildings that are well maintained and located in areas with relatively low competition.
This, according to Borden, facilitates higher rental rates due to decreased competition for tenants which in turn results in increased profitability for Stag Industrial. Overall, Borden sees a robust backdrop for industrial real estate that could potentially benefit Stag Industrial, and with the company’s well-positioned portfolio, he expects it to be able to sustain and even expand its profit margins in the coming quarters. The strength of the industrial real estate sector and Stag’s ability to position itself to take advantage of this growth should keep investors interested in the stock and provide a strong foundation for the fourth quarter results.
Market Price
On Tuesday, STAG INDUSTRIAL stock opened at $35.5 and closed at $35.5, showing no change from the prior closing price of $35.7. According to BMO Capital Markets analyst, despite the industry tailwinds, the company’s fourth quarter profit and sales are seen edging down. BMO Capital Markets analyst believes that the long-term prospects of the industrial real estate sector remain strong and the underlying fundamentals are sound. The demand for space in the industrial sector has grown notably due to the rise of e-commerce, as companies need more space to store and transport goods. STAG INDUSTRIAL is well positioned to capitalize on this growth in demand for industrial real estate space. At the same time, the company has been actively investing in its balance sheet, with most of its investments focused on industrial real estate. This has enabled STAG INDUSTRIAL to maintain a strong balance sheet and provide liquidity for future investments.
Additionally, its diverse tenant base helps it to mitigate the impact of any single tenant’s defaulting on rent payments. In conclusion, despite the challenges posed by fourth quarter profit and sales, STAG INDUSTRIAL’s long-term prospects remain strong given its robust real estate portfolio and diverse tenant base. The company is well-positioned to capitalize on the growth of e-commerce and benefit from the industry tailwinds. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Stag Industrial. More…
| Total Revenues | Net Income | Net Margin |
| 634.64 | 234.58 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Stag Industrial. More…
| Operations | Investing | Financing |
| 379.41 | -1.01k | 603.63 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Stag Industrial. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.2k | 2.7k | 19.09 |
Key Ratios Snapshot
Some of the financial key ratios for Stag Industrial are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 31.4% |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis
GoodWhale’s analysis of STAG INDUSTRIAL demonstrates strong financials and high health score of 7/10. This indicates that the company is capable of sustaining their operations in times of crisis. According to the Star Chart, STAG INDUSTRIAL has a high rating in asset and growth, and a medium rating in dividend and profitability. As a ‘cow’, it is a company that has a track record of providing sustainable and consistent dividends. This type of company may be attractive to investors that are looking for income and stability in their portfolios. These investors may be more risk-averse, as the income from such a company is reliable, and unlikely to disappear. This could include retirees, who rely on dividend income for their expenses. It could also include value investors, who are looking for companies that have potential for growth, but are not necessarily in a high-growth stage. In addition, this company may be attractive to people looking to diversify their portfolio. This kind of diversification can help investors to manage their risk and ensure a steady return on their investments. Overall, STAG INDUSTRIAL has strong financials and is classified as a ‘cow’, making it an attractive choice for investors looking for income and stability in their portfolios. Its high health score indicates that it can provide reliable income without too much risk. More…
Peers
The competition among Stag Industrial Inc, Prologis Inc, Terreno Realty Corp, and Duke Realty Corp is fierce. All four companies are in the business of providing industrial space for businesses. They all have their own strengths and weaknesses, and each is trying to outdo the others in terms of price, quality, and service.
– Prologis Inc ($NYSE:PLD)
Prologis Inc is a real estate investment trust that owns, operates, and develops warehouses and distribution facilities. As of December 31, 2020, the company owned or had investments in 3,109 properties in 19 countries. Prologis Inc is headquartered in San Francisco, California.
– Terreno Realty Corp ($NYSE:TRNO)
Terreno Realty Corp is a real estate investment trust that focuses on the acquisition, development, and operation of industrial properties in the United States. The company has a market cap of 4.32B as of 2022. Terreno Realty Corp’s properties are located in major metropolitan markets in the United States. The company was founded in 2006 and is headquartered in San Francisco, California.
Summary
STAG Industrial Inc. is a real estate investment trust that specializes in the acquisition and operation of single-tenant industrial properties across the United States. BMO Capital Markets has conducted an analysis of STAG’s fourth quarter, predicting that its profit and sales will edge down despite strong industry tailwinds.
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