STAG Industrial: the REIT with our best score
2026-06-23 · By Lubin Danilo, founder of Lubin Investment
STAG Industrial scores 7/10 in our screener — the best score among all REITs analyzed. STAG owns industrial warehouses leased to single tenants, primarily in secondary US markets. Its less capital-intensive model and superior growth let it outperform retail and triple-net REITs in our method.
STAG Industrial: the REIT that best passes our filter
STAG Industrial Inc. (NYSE: STAG) is an industrial real estate REIT — warehouses, distribution centers, light manufacturing. Unlike Prologis (which targets premium logistics hubs), STAG focuses on secondary US markets with higher rental yields. Its tenants are SMEs and larger companies renting an entire building under single-tenant leases.
Screener fundamentals as of June 23, 2026
| Criterion | Value | Status |
|---|---|---|
| Net margin | 28.3% | ✅ Pass |
| Revenue growth (5Y) | 9.8%/yr | ❌ Slightly below threshold |
| FCF/share growth (5Y) | 6.1%/yr | ❌ Below 10% threshold |
| Share dilution | +1.84%/yr | ❌ Slight dilution |
| FCF margin | 53.7% | ✅ Pass |
| Margin expansion | Expanding | ✅ Pass |
| ROIC | 12.9% | ❌ Below threshold |
| Debt | 6.86× | ❌ High |
| Cash conversion | 1.90× | ✅ Pass |
| DSO | -19 days | ✅ Pass (advance payment) |
| Valuation | $38.58 vs $21.12 target | ❌ 83% above target |
Why industrial beats retail and triple-net
| Criterion | STAG Industrial | Realty Income (O) | Strip centers (avg.) |
|---|---|---|---|
| Lubin screener score | 7/10 | 6/10 | 6/10 |
| FCF/share growth (5Y) | 6.1%/yr | 1.1%/yr | ~2-4%/yr |
| Dilution | +1.84%/yr | +15.11%/yr | ~3-8%/yr |
| FCF margin | 53.7% | 68.4% | ~65% |
| Margin expansion | Yes | No | Mixed |
STAG's monthly dividend: an underrated advantage
Like Realty Income, STAG Industrial pays a monthly dividend — rare in the industrial category. In 2026, the yield is about 4.5%. Dividend growth tracks AFFO/share growth at about 5%/year over 5 years. For investors seeking to combine monthly income with e-commerce logistics exposure, STAG offers a unique profile.
FAQ
STAG Industrial vs Prologis: which is the better industrial REIT?
Prologis is the global leader (premium logistics hubs, Amazon, UPS) but very expensive. STAG is in secondary markets (higher yields) but less pricing power on lease renewals. Both have different screener scores — STAG is more accessible but less quality-premium than Prologis.
Does STAG benefit from e-commerce growth?
Indirectly. Secondary markets where STAG operates see rising warehouse demand from last-mile logistics (Amazon, Walmart, UPS). But STAG doesn't have direct contracts with these giants — its tenants are SMEs and tier-2 suppliers.
Does STAG pay a monthly dividend?
Yes — STAG is one of the few industrial REITs paying monthly dividends. In 2026, the yield is about 4.5% with ~5%/year growth over the past 5 years.
Why does STAG choose secondary markets?
Secondary markets (US Midwest, South) offer higher initial rental yields (cap rates 6-7% vs 4-5% for primary markets). Investor competition is lower. Rent growth is slower but the entry point is more favorable.
Is STAG solid in a recession?
STAG held up well in 2020 (COVID) — occupancy stayed above 95%. Light industrial is less cyclical than offices or malls. Single-tenant 3-5 year leases provide revenue visibility.
Voir l'analyse STAG sur Lubin Investment
About the author
Written by Lubin Danilo, founder of Lubin Investment. A self-taught individual investor, I have analyzed stocks through their fundamentals for several years and invest my own money with this method. I codified it into a tool that judges a company's quality and its price separately, using criteria drawn from the financial literature (Warren Buffett, Michael Mauboussin, Aswath Damodaran).