INDUSTRIAL REITS STANDARDIZE KEY PROPERTY METRICS

Rhea-AI Summary

STAG Industrial (NYSE:STAG) has joined forces with EastGroup Properties, First Industrial Realty Trust, and Prologis to standardize key non-GAAP property metrics across the industrial REIT sector.

The coalition has updated their methodology for calculating metrics including property stabilization, occupancy, rent change, and customer retention. The initiative builds upon their 2018 harmonization efforts and maintains that annual same-store portfolio calculations will only include properties stabilized in both current and prior periods.

The standardization will be implemented in STAG Industrial's 2025 guidance and is not expected to materially impact non-GAAP metrics for pre-2025 periods. While some minor calculation differences may persist, the initiative aims to enhance sector-wide consistency and comparability.

Positive

• Enhanced transparency and comparability of metrics for investors
• Continuation and improvement of 2018 standardization initiative
• No material impact expected on historical performance metrics

Negative

• None.

BOSTON, April 1, 2025 /PRNewswire/ -- STAG Industrial, Inc. (the "Company") (NYSE:STAG) today announced a coalition of industrial real estate investment trusts – STAG Industrial, EastGroup Properties, Inc., First Industrial Realty Trust, Inc., and Prologis, Inc. (collectively, the "Industrial REIT Group") – has updated its standardized methodology for calculating key non-GAAP property metrics to improve comparability across the sector.

Building on the 2018 harmonization initiative, the Industrial REIT Group reaffirmed its approach to determining property stabilization, occupancy, rent change, and customer retention.  Additionally, the annual same-store portfolio will continue to include only properties that were stabilized in both the current and prior periods presented.  Criteria to exclude value-add and redevelopment properties from the same store portfolio was also reaffirmed. 

All Industrial REIT Group members will align their non-GAAP metrics with these methodologies when the metric is disclosed.  These methodologies are incorporated in STAG Industrial's 2025 guidance and are not expected to have a material impact on STAG Industrial's non-GAAP metrics for periods prior to 2025.

While minor differences may remain in calculation methods or terminology, the shared goal is to enhance consistency and comparability across the sector.

About STAG Industrial, Inc.

STAG Industrial, Inc. is a real estate investment trust focused on the acquisition, ownership, and operation of industrial properties throughout the United States. As of December 31, 2024, the Company's portfolio consists of 591 buildings in 41 states with approximately 116.6 million rentable square feet.

For additional information, please visit the Company's website at www.stagindustrial.com.

Forward-Looking Statements

This press release, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, are generally identifiable by use of the words "believe," "will," "expect," "intend," "anticipate," "estimate," "should," "project" or similar expressions. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company's control and which could materially affect actual results, performances or achievements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, the risk factors discussed in the Company's annual report on Form 10-K for the year ended December 31, 2024, as updated by the Company's quarterly reports on Form 10-Q. Accordingly, there is no assurance that the Company's expectations will be realized. Except as otherwise required by the federal securities laws, the Company disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in the Company's expectations with regard thereto or any change in events, conditions, or circumstances on which any such statement is based.

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SOURCE STAG Industrial, Inc.

FAQ

How will STAG Industrial's 2025 metrics be affected by the new standardization?

The new standardization will be incorporated into STAG's 2025 guidance but is not expected to materially impact non-GAAP metrics for periods before 2025.

What property metrics are being standardized by STAG and other industrial REITs?

The standardization covers property stabilization, occupancy, rent change, and customer retention metrics.

Which REITs are participating in the industrial metrics standardization with STAG?

EastGroup Properties, First Industrial Realty Trust, and Prologis are participating alongside STAG Industrial.

What criteria will STAG use for same-store portfolio calculations under the new standards?

Only properties that were stabilized in both current and prior periods will be included, excluding value-add and redevelopment properties.