STAG Industrial: 1.8X Coverage, FFO Growth, Cheap

2026-03-30 09:01:50 ET

STAG Industrial ( STAG ) has suffered lately, as did other REITs, from the prospects of higher interest rates after the U.S. and Israel attacked Iran at the end of February, which kicked off yet another escalation in the Middle East. However, STAG Industrial is reliably growing its core funds from operations, has a well-occupied industrial-focused real estate portfolio and significant excess coverage that limits downside risk, in my opinion. I like STAG Industrial because of its excellent 1.8X dividend coverage ratio as well as consistent investment activity, driven by e-Commerce sector expansion and reshoring of U.S. supply chains. Due to the recent consolidation, investors can buy a piece of STAG Industrial at an approximately 8% discount compared to the REIT's valuation at the beginning of March....

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