STAG Industrial's Growth Outpaces Its Multiple

The Buy Thesis STAG Industrial (STAG) is in a sweet spot for AFFO/share growth. Mark-to-market on its existing portfolio keeps organic growth flowing at 3%-5% while higher cap rates have turned acquisitions and developments immediately accretive. STAG is designed as an acquisitive company, so the higher transaction volume outlook for 2026 bodes well for their relative growth rate. Between the various levers, we see annual AFFO/share growth of about 9%. That is excellent growth relative to a 17X AFFO multipl ...