Real Estate Sector Ideas

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STAG Industrial - >>> These April REIT Buys Could Shower You With Profits


by Marc Rapport

The Motley Fool

April 3, 2022


https://finance.yahoo.com/m/b824098c-aaf2-3d7e-880a-48ff6b8cd242/these-april-reit-buys-could.html


STAG Industrial ( STAG -1.30% ) owns and operates industrial properties, one of the market's hottest sectors right now given the demand for logistics and warehouse space. STAG currently has a portfolio of 544 buildings in 40 states that is benefiting from the ability to seriously raise the rent, including by more than 16% this year.

The portfolio itself is also growing. STAG bought 74 properties for about $1.3 billion in 2021, and has an acquisition pipeline of $4.1 billion, of which $93 million has already been spent. The combination of e-commerce shipping demand and the growing imperative for "just in case" inventory storage for manufacturers has the company optimistic, for instance by projecting same-store cash growth of 3% to 4% in 2022, the most in its 11-year history.

STAG shareholders get paid monthly, including an April shower of $0.1217 a share, good for a yield of about 3.46% for investors in this industrial REIT that currently has a market cap of about $7.5 billion.

Trailing-12-month growth in funds from operations (FFO), a key measure of a REIT's performance, has increased for all three, but Postal Realty is the standout.

REITs for all reasons, all seasons

Each of these three equity REITs have solid portfolios in well-established industries with prospects for growth. After a strong 2021 -- which included notable gains in such key metrics as FFO -- they also each took share-price hits that they haven't shaken off yet, which means now could be a good opportunity to buy and hold through many seasons to come.

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