STAG INDUSTRIAL ANNOUNCES THIRD QUARTER 2025 RESULTS

Rhea-AI Summary

STAG Industrial (NYSE:STAG) reported third quarter 2025 results for the period ended September 30, 2025. Key operating and financial metrics improved year-over-year.

Highlights include net income attributable to common stockholders of $48.6M (+16.2%), net income per diluted share $0.26 (+13%), Core FFO per diluted share $0.65 (+8.3%), and Same Store Cash NOI $145.7M (+3.9%). Occupancy was 95.8% total and 96.8% operating. The company acquired two buildings (1.0M SF) for $101.5M at a 6.6% cash cap rate, refinanced a $300M term loan maturing March 15, 2030, and reported liquidity $904.1M with Net Debt/EBITDAre of 5.1x.

Positive

• Net income $48.6M (+16.2% YoY)
• Core FFO per diluted share $0.65 (+8.3% YoY)
• Same Store Cash NOI $145.7M (+3.9% YoY)
• Occupancy 95.8% total; 96.8% operating
• Acquisitions 1.0M SF for $101.5M at 6.6% cash cap rate
• Liquidity $904.1M; Net Debt/EBITDAre 5.1x

Negative

• Interest expense $31.7M in Q3 2025 vs $28.7M Q3 2024 (≈10.4% increase)
• Cash and equivalents declined to $17.3M from $36.3M at year-end 2024
• Unsecured notes increased to $1,966.6M from $1,594.1M at year-end 2024

Insights

REIT Financial Analyst

STAG delivered solid quarter: rising Core FFO, higher net income, strong occupancy and continued acquisitions support operational momentum.

Financial mechanics: Reported net income attributable to common stockholders rose to $48,594 for Q3 2025 versus $41,811 year‑ago, and Core FFO per diluted share increased to $0.65, up 8.3% year‑over‑year. Cash NOI and Same Store Cash NOI expanded ($162,252 and $145,694 respectively), reflecting higher rental income and effective lease resets that produced a weighted Cash Rent Change of 27.2% for the quarter.

Dependencies and risks: Results rely on continued leasing execution and capital deployment; occupancy remains high at 95.8% (Operating Portfolio 96.8%), but retention for expiring leases was only 63.4% this quarter which moderates the strength of renewals. Balance sheet metrics show liquidity of $904.1 million and Net Debt to Run Rate Adjusted EBITDAre at 5.1x, and the company refinanced a $300 million term loan to March 15, 2030, which extends maturities but increases fixed rate exposure to 3.94% after February 5, 2026.

Concrete items to watch (near‑term): leasing retention trends for upcoming expirations, the performance of the $3.6 billion acquisition pipeline (29.4 million sq ft) and any change in same‑store NOI growth over the next four fiscal quarters. Monitor quarterly Core FFO per share and occupancy as the primary indicators over the next 12 months.

BOSTON, Oct. 29, 2025 /PRNewswire/ -- STAG Industrial, Inc. (the "Company") (NYSE:STAG), today announced its financial and operating results for the quarter ended September 30, 2025.

"STAG's strong performance through the third quarter reflects the stability of our portfolio and the continued health of our markets," said Bill Crooker, President and Chief Executive Officer of the Company. "With disciplined execution and improving leasing momentum, we expect to deliver another year of meaningful growth and long-term value creation."

Third Quarter 2025 Highlights

• Reported $0.26 of net income per basic and diluted common share for the third quarter of 2025, compared to $0.23 of net income per basic and diluted common share for the third quarter of 2024. Reported $48.6 million of net income attributable to common stockholders for the third quarter of 2025, compared to net income attributable to common stockholders of $41.8 million for the third quarter of 2024.
• Achieved $0.65 of Core FFO per diluted share for the third quarter of 2025, an increase of 8.3% compared to the third quarter of 2024 Core FFO per diluted share of $0.60.
• Produced Same Store Cash NOI of $145.7 million for the third quarter of 2025, an increase of 3.9% compared to the third quarter of 2024 of $140.2 million.
• Acquired two buildings in the third quarter of 2025, consisting of 1.0 million square feet, for $101.5 million, with a Cash Capitalization Rate of 6.6%.
• Achieved an Occupancy Rate of 95.8% on the total portfolio and 96.8% on the Operating Portfolio as of September 30, 2025.
• Commenced Operating Portfolio leases of 2.2 million square feet for the third quarter of 2025, resulting in a Cash Rent Change and Straight-Line Rent Change of 27.2% and 40.6%, respectively.
• Experienced 63.4% Retention for 2.5 million square feet of leases expiring in the quarter.
• Refinanced $300 million term loan G, which was scheduled to mature in February 2026 and now matures March 15, 2030.
• Signed a full building lease totaling 243,642 square feet of warehouse and distribution space at the Company's development project at 1809 East Poinsett Street in Greer, South Carolina.
• Subsequent to quarter end, signed a lease totaling 90,896 square feet of warehouse and distribution space at the Company's development project at 575 Maddox-Simpson Parkway in Lebanon, Tennessee.

Please refer to the Non-GAAP Financial Measures and Other Definitions section at the end of this release for definitions of capitalized terms used in this release.

The Company will host a conference call tomorrow, Thursday, October 30, 2025 at 10:00 a.m. (Eastern Time), to discuss the quarter's results and provide information about acquisitions, operations, capital markets and corporate activities. Details of the call can be found at the end of this release.

Key Financial Measures
THIRD QUARTER 2025 KEY FINANCIAL MEASURES
		Three months ended September 30,						Nine months ended September 30,
Metrics		2025		2024		% Change		2025		2024		% Change
(in $000s, except per share data)
Net income attributable to common stockholders		$48,594		$41,811		16.2 %		$189,911		$138,128		37.5 %
Net income per common share — basic		$0.26		$0.23		13.0 %		$1.02		$0.76		34.2 %
Net income per common share — diluted		$0.26		$0.23		13.0 %		$1.02		$0.76		34.2 %
Cash NOI		$162,252		$148,415		9.3 %		$481,137		$442,319		8.8 %
Same Store Cash NOI (1)		$145,694		$140,158		3.9 %		$433,440		$418,923		3.5 %
Adjusted EBITDAre		$152,537		$138,741		9.9 %		$450,967		$412,134		9.4 %
Core FFO		$124,707		$110,765		12.6 %		$360,468		$332,951		8.3 %
Core FFO per share / unit — basic		$0.66		$0.60		10.0 %		$1.89		$1.79		5.6 %
Core FFO per share / unit — diluted		$0.65		$0.60		8.3 %		$1.89		$1.79		5.6 %
Cash Available for Distribution		$101,007		$87,965		14.8 %		$306,322		$281,217		8.9 %

(1) The Same Store pool accounted for 90.2% of the total portfolio square footage as of September 30, 2025.

Definitions of the above-mentioned non-GAAP financial measures, together with reconciliations to net income (loss) in accordance with GAAP, appear at the end of this release. Please also see the Company's supplemental information package for additional disclosure.

Acquisition and Disposition Activity

For the three months ended September 30, 2025, the Company acquired two buildings for $101.5 million with an Occupancy Rate of 100.0% upon acquisition. The chart below details the acquisition activity for the quarter:

THIRD QUARTER 2025 ACQUISITION ACTIVITY
Market	Date Acquired	Square Feet	Buildings	Purchase Price ($000s)	W.A. Lease Term (Years)	Cash Capitalization Rate	Straight-Line Capitalization Rate
Houston, TX	9/15/2025	462,250	1	$47,485	6.4
Dayton, OH	9/23/2025	524,160	1	54,043	6.9
Total / weighted average		986,410	2	$101,528	6.7	6.6 %	7.2 %

In the third quarter, the Company acquired one vacant land parcel for $2.9 million.

The chart below details the 2025 acquisition activity and pipeline through October 28, 2025:

2025  ACQUISITION ACTIVITY AND PIPELINE DETAIL
	Square Feet	Buildings	Purchase Price ($000s)	W.A. Lease Term (Years)	Cash Capitalization Rate	Straight-Line Capitalization Rate
Q1	393,564	3	$43,285	3.2	6.8 %	7.0 %
Q2	183,200	1	18,399	5.0	7.1 %	7.1 %
Q3	986,410	2	101,528	6.7	6.6 %	7.2 %
Total / weighted average	1,563,174	6	$163,212	5.6	6.7 %	7.1 %
As of October 28, 2025
Subsequent to quarter-end acquisitions	408,198	1	$49.2 million
Pipeline	29.4 million	169	$3.6 billion

Year to date, the Company acquired two vacant land parcels for $8.4 million.

The chart below details the disposition activity for the nine months ended September 30, 2025:

2025 DISPOSITION ACTIVITY
	Square Feet	Buildings	Sale Price ($000s)
Q1	337,391	1	$67,000
Q2	151,200	1	9,100
Q3	100,000	1	6,100
Total	588,591	3	$82,200

Leasing Activity

The chart below details the leasing activity for leases commenced during the three months ended September 30, 2025:

THIRD QUARTER 2025 OPERATING PORTFOLIO LEASING ACTIVITY
Lease Type	Square Feet	Lease Count	W.A. Lease Term (Years)	Cash Base Rent $/SF	SL Base Rent $/SF	Lease Commissions $/SF	Tenant Improvements $/SF	Cash Rent Change	SL Rent Change	Retention
New Leases	596,845	6	5.8	$6.98	$7.43	$2.61	$1.10	35.0 %	49.5 %
Renewal Leases	1,557,344	16	4.6	$6.35	$6.74	$1.39	$0.17	24.2 %	37.1 %	63.4 %
Total / weighted average	2,154,189	22	4.9	$6.53	$6.93	$1.73	$0.43	27.2 %	40.6 %

In the third quarter of 2025, the Company signed a full building lease totaling 243,642 square feet of warehouse and distribution space at the Company's development project at 1809 East Poinsett Street in Greer, South Carolina.

Subsequent to quarter end, the Company signed a lease totaling 90,896 square feet of warehouse and distribution space at the Company's development project at 575 Maddox-Simpson Parkway in Lebanon, Tennessee.

The chart below details the leasing activity for leases commenced during the nine months ended September 30, 2025:

2025 YEAR TO DATE OPERATING PORTFOLIO LEASING ACTIVITY
Lease Type	Square Feet	Lease Count	W.A. Lease Term (Years)	Cash Base Rent $/SF	SL Base Rent $/SF	Lease Commissions $/SF	Tenant Improvements $/SF	Cash Rent Change	SL Rent Change	Retention
New Leases	2,480,512	21	5.3	$6.25	$6.52	$2.09	$0.65	35.0 %	48.9 %
Renewal Leases	8,852,590	69	4.9	$6.08	$6.47	$1.32	$0.27	24.0 %	39.5 %	77.5 %
Total / weighted average	11,333,102	90	5.0	$6.12	$6.48	$1.49	$0.35	26.3 %	41.4 %

Additionally, for the three and nine months ended September 30, 2025, leases commenced totaling 284,357 and 2.0 million square feet, respectively, related to Value Add assets and first generation leasing. These are excluded from the Operating Portfolio statistics above.

As of October 28, 2025, addressed 98.7% of expected 2025 new and renewal leasing, consisting of 14.0 million square feet, achieving Cash Rent Change of 23.9%.

As of October 28, 2025, addressed 52.0% of expected 2026 new and renewal leasing, consisting of 9.5 million square feet, achieving Cash Rent Change of 21.8%.

Year to date, the Company signed seven leases totaling 1.6 million square feet of warehouse and distribution space across the Company's development projects.

Capital Markets Activity

On September 15, 2025, the Company refinanced $300 million term loan G, which was scheduled to mature in February 2026. The term loan now matures March 15, 2030, with one one-year extension option, subject to certain conditions. The term loan bears an aggregate fixed interest rate, inclusive of interest rate swaps, of 1.70% until February 5, 2026 and will bear an aggregate fixed interest rate, inclusive of interest rate swaps, of 3.94% from February 5, 2026 through March 15, 2030.

As of September 30, 2025, Net Debt to Annualized Run Rate Adjusted EBITDAre was 5.1x and Liquidity was $904.1 million.

Conference Call

The Company will host a conference call tomorrow, Thursday, October 30, 2025, at 10:00 a.m. (Eastern Time) to discuss the quarter's results.  The call can be accessed live over the phone toll-free by dialing (877) 407-4018, or for international callers, (201) 689-8471.  A replay will be available shortly after the call and can be accessed by dialing (844) 512-2921, or for international callers, (412) 317-6671.  The passcode for the replay is 13756207.

Interested parties may also listen to a simultaneous webcast of the conference call by visiting the Investor Relations section of the Company's website at www.stagindustrial.com, or by clicking on the following link:

http://ir.stagindustrial.com/QuarterlyResults

Supplemental Schedule

The Company has provided a supplemental information package with additional disclosure and financial information on its website (www.stagindustrial.com) under the "Quarterly Results" tab in the Investor Relations section.

CONSOLIDATED BALANCE SHEETS STAG Industrial, Inc. (unaudited, in thousands, except share data)
	September 30, 2025		December 31, 2024
Assets
Rental Property:
Land	$                    793,164		$                     771,794
Buildings and improvements, net of accumulated depreciation of $1,221,545 and $1,085,866, respectively	5,396,280		5,295,120
Deferred leasing intangibles, net of accumulated amortization of $426,813 and $386,627, respectively	381,714		428,865
Total rental property, net	6,571,158		6,495,779
Cash and cash equivalents	17,319		36,284
Restricted cash	1,110		1,109
Tenant accounts receivable	144,996		136,357
Prepaid expenses and other assets	109,705		96,189
Interest rate swaps	16,945		36,466
Operating lease right-of-use assets	29,756		31,151
Assets held for sale, net	6,091		—
Total assets	$                 6,897,080		$                  6,833,335
Liabilities and Equity
Liabilities:
Unsecured credit facility	$                    110,000		$                     409,000
Unsecured term loans, net	1,021,045		1,021,848
Unsecured notes, net	1,966,606		1,594,092
Mortgage note, net	4,035		4,195
Accounts payable, accrued expenses and other liabilities	154,515		126,811
Interest rate swaps	1,271		—
Tenant prepaid rent and security deposits	55,065		56,173
Dividends and distributions payable	23,669		23,469
Deferred leasing intangibles, net of accumulated amortization of $35,569 and $31,368, respectively	26,879		33,335
Operating lease liabilities	34,039		35,304
Total liabilities	$                 3,397,124		$                  3,304,227
Equity:
Preferred stock, par value $0.01 per share, 20,000,000 shares authorized at September 30, 2025 and December 31, 2024; none issued or outstanding	—		—
Common stock, par value $0.01 per share, 300,000,000 shares authorized at September 30, 2025 and December 31, 2024, 186,744,593 and 186,517,523 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively	1,867		1,865
Additional paid-in capital	4,456,453		4,449,964
Cumulative dividends in excess of earnings	(1,048,331)		(1,029,757)
Accumulated other comprehensive income	15,236		35,579
Total stockholders' equity	3,425,225		3,457,651
Noncontrolling interest in operating partnership	71,078		69,932
Noncontrolling interest in joint ventures	3,653		1,525
Total equity	$                 3,499,956		$                  3,529,108
Total liabilities and equity	$                 6,897,080		$                  6,833,335

 

CONSOLIDATED STATEMENTS OF OPERATIONS STAG Industrial, Inc. (unaudited, in thousands, except per share data)
	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Revenue
Rental income	$            209,995		$            190,286		$            622,795		$            564,155
Other income	1,126		453		1,493		3,904
Total revenue	211,121		190,739		624,288		568,059
Expenses
Property	42,168		38,015		126,249		114,564
General and administrative	12,173		11,978		38,380		36,758
Depreciation and amortization	75,963		72,506		224,336		219,213
Loss on impairment	—		—		888		4,967
Other expenses	563		545		1,077		1,703
Total expenses	130,867		123,044		390,930		377,205
Other income (expense)
Interest and other income	372		14		380		39
Interest expense	(31,670)		(28,705)		(97,817)		(81,498)
Debt extinguishment and modification expenses	(1,503)		(36)		(1,503)		(703)
Gain on involuntary conversion	—		3,568		1,855		9,285
Gain on the sales of rental property, net	2,196		195		57,801		23,281
Total other income (expense)	(30,605)		(24,964)		(39,284)		(49,596)
Net income	$             49,649		$             42,731		$            194,074		$            141,258
Less: income attributable to noncontrolling interest in operating partnership	1,013		875		4,035		2,992
Net income attributable to STAG Industrial, Inc.	$             48,636		$             41,856		$            190,039		$            138,266
Less: amount allocated to participating securities	42		45		128		138
Net income attributable to common stockholders	$             48,594		$             41,811		$            189,911		$            138,128
Weighted average common shares outstanding — basic	186,593		182,027		186,533		181,899
Weighted average common shares outstanding — diluted	186,840		182,297		186,837		182,173
Net income per share — basic and diluted
Net income per share attributable to common stockholders — basic	$                 0.26		$                 0.23		$                 1.02		$                 0.76
Net income per share attributable to common stockholders — diluted	$                 0.26		$                 0.23		$                 1.02		$                 0.76

 

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES STAG Industrial, Inc. (unaudited, in thousands)
	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
NET OPERATING INCOME RECONCILIATION
Net income	$             49,649		$             42,731		$            194,074		$            141,258
General and administrative	12,173		11,978		38,380		36,758
Depreciation and amortization	75,963		72,506		224,336		219,213
Interest and other income	(372)		(14)		(380)		(39)
Interest expense	31,670		28,705		97,817		81,498
Loss on impairment	—		—		888		4,967
Gain on involuntary conversion	—		(3,568)		(1,855)		(9,285)
Debt extinguishment and modification expenses	1,503		36		1,503		703
Other expenses	563		545		1,077		1,703
Gain on the sales of rental property, net	(2,196)		(195)		(57,801)		(23,281)
Net operating income	$            168,953		$            152,724		$            498,039		$            453,495
Net operating income	$            168,953		$            152,724		$            498,039		$            453,495
Rental property straight-line rent adjustments, net	(6,034)		(3,779)		(15,008)		(11,178)
Amortization of above and below market leases, net	(667)		(530)		(1,894)		2
Cash net operating income	$            162,252		$            148,415		$            481,137		$            442,319
Cash net operating income	$            162,252
Cash NOI from acquisitions' and disposition timing	1,376
Cash termination, solar and other income	(2,601)
Run Rate Cash NOI	$            161,027
Same Store Portfolio NOI
Total NOI	$            168,953		$            152,724		$            498,039		$            453,495
Less: NOI non-same-store properties	(18,157)		(8,712)		(50,396)		(20,839)
Termination, solar and other adjustments, net	(1,128)		(876)		(2,845)		(4,495)
Same Store NOI	$            149,668		$            143,136		$            444,798		$            428,161
Less: straight-line rent adjustments, net	(3,858)		(2,831)		(11,092)		(8,678)
Plus: amortization of above and below market leases, net	(116)		(147)		(266)		(560)
Same Store Cash NOI	$            145,694		$            140,158		$            433,440		$            418,923
EBITDA FOR REAL ESTATE (EBITDAre) RECONCILIATION
Net income	$             49,649		$             42,731		$            194,074		$            141,258
Depreciation and amortization	75,963		72,506		224,336		219,213
Interest and other income	(372)		(14)		(380)		(39)
Interest expense	31,670		28,705		97,817		81,498
Loss on impairment	—		—		888		4,967
Gain on the sales of rental property, net	(2,196)		(195)		(57,801)		(23,281)
EBITDAre	$            154,714		$            143,733		$            458,934		$            423,616
ADJUSTED EBITDAre RECONCILIATION
EBITDAre	$            154,714		$            143,733		$            458,934		$            423,616
Straight-line rent adjustments, net	(6,119)		(3,853)		(15,244)		(11,384)
Amortization of above and below market leases, net	(667)		(530)		(1,894)		2
Non-cash compensation expense	3,136		2,952		9,566		8,813
Non-recurring other items	(30)		(29)		(43)		(331)
Gain on involuntary conversion	—		(3,568)		(1,855)		(9,285)
Debt extinguishment and modification expenses	1,503		36		1,503		703
Adjusted EBITDAre	$            152,537		$            138,741		$            450,967		$            412,134

 

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES STAG Industrial, Inc. (unaudited, in thousands, except per share data)
	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
CORE FUNDS FROM OPERATIONS RECONCILIATION
Net income	$             49,649		$             42,731		$            194,074		$            141,258
Rental property depreciation and amortization	75,876		72,421		224,076		219,002
Loss on impairment	—		—		888		4,967
Gain on the sales of rental property, net	(2,196)		(195)		(57,801)		(23,281)
Funds from operations	$            123,329		$            114,957		$            361,237		$            341,946
Amount allocated to restricted shares of common stock and unvested units	(125)		(130)		(417)		(415)
Funds from operations attributable to common stockholders and unit holders	$            123,204		$            114,827		$            360,820		$            341,531
Funds from operations attributable to common stockholders and unit holders	$            123,204		$            114,827		$            360,820		$            341,531
Debt extinguishment and modification expenses and other	1,503		(494)		1,503		705
Gain on involuntary conversion	—		(3,568)		(1,855)		(9,285)
Core funds from operations	$            124,707		$            110,765		$            360,468		$            332,951
Weighted average common shares and units
Weighted average common shares outstanding	186,593		182,027		186,533		181,899
Weighted average units outstanding	3,679		3,588		3,697		3,685
Weighted average common shares and units - basic	190,272		185,615		190,230		185,584
Dilutive shares	247		270		304		274
Weighted average common shares, units, and other dilutive shares - diluted	190,519		185,885		190,534		185,858
Core funds from operations per share / unit - basic	$                 0.66		$                 0.60		$                 1.89		$                 1.79
Core funds from operations per share / unit - diluted	$                 0.65		$                 0.60		$                 1.89		$                 1.79
CASH AVAILABLE FOR DISTRIBUTION RECONCILIATION
Core funds from operations	$            124,707		$            110,765		$            360,468		$            332,951
Amount allocated to restricted shares of common stock and unvested units	125		130		417		415
Non-rental property depreciation and amortization	87		85		260		211
Straight-line rent adjustments, net	(6,119)		(3,853)		(15,244)		(11,384)
Capital expenditures	(11,406)		(12,203)		(27,381)		(28,376)
Capital expenditures reimbursed by tenants	(1,578)		(2,231)		(2,372)		(4,799)
Lease commissions and tenant improvements	(9,351)		(8,845)		(23,436)		(19,815)
Non-cash portion of interest expense	1,406		1,165		4,044		3,201
Non-cash compensation expense	3,136		2,952		9,566		8,813
Cash available for distribution	$            101,007		$             87,965		$            306,322		$            281,217

Non-GAAP Financial Measures and Other Definitions

Acquisition Capital Expenditures: We define Acquisition Capital Expenditures as capital expenditures identified at the time of acquisition. Acquisition Capital Expenditures also include new lease commissions and tenant improvements for space that was not occupied under the Company's ownership.  

Cash Available for Distribution: Cash Available for Distribution represents Core FFO, excluding non-rental property depreciation and amortization, straight-line rent adjustments, non-cash portion of interest expense, non-cash compensation expense, and deducts capital expenditures reimbursed by tenants, capital expenditures, leasing commissions and tenant improvements, and severance costs.

Cash Available for Distribution should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, and we believe that to understand our performance further, these measurements should be compared with our reported net income or net loss in accordance with GAAP, as presented in our consolidated financial statements. 

Cash Available for Distribution excludes, among other items, depreciation and amortization and capture neither the changes in the value of our buildings that result from use or market conditions of our buildings, all of which have real economic effects and could materially impact our results from operations, the utility of these measures as measures of our performance is limited. In addition, our calculation of Cash Available for Distribution may not be comparable to similarly titled measures disclosed by other REITs. 

Cash Capitalization Rate: We define Cash Capitalization Rate as calculated by dividing (i) the Company's estimate of year one cash net operating income from the applicable property's operations stabilized for occupancy (post-lease-up for vacant properties), which does not include termination income, solar income, miscellaneous other income, capital expenditures, general and administrative costs, reserves, tenant improvements and leasing commissions, credit loss, or vacancy loss, by (ii) the GAAP purchase price plus estimated Acquisition Capital Expenditures. These Capitalization Rate estimates are subject to risks, uncertainties, and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control, including those risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2024.  

Cash Rent Change: We define Cash Rent Change as the percentage change in the base rent of the lease commenced during the period compared to the base rent of the Comparable Lease for assets included in the Operating Portfolio. The calculation compares the first base rent payment due after the lease commencement date compared to the base rent of the last monthly payment due prior to the termination of the lease, excluding holdover rent. Rent under gross or similar type leases are converted to a net rent based on an estimate of the applicable recoverable expenses.

Comparable Lease: We define a Comparable Lease as a lease in the same space with a similar lease structure as compared to the previous in-place lease, excluding new leases for space that was not occupied under our ownership.

Earnings before Interest, Taxes, Depreciation, and Amortization for Real Estate (EBITDAre), Adjusted EBITDAre, Annualized Adjusted EBITDAre, Run Rate Adjusted EBITDAre, and Annualized Run Rate Adjusted EBITDAre: We define EBITDAre in accordance with the standards established by the National Association of Real Estate Investment Trusts ("NAREIT"). EBITDAre represents net income (loss) (computed in accordance with GAAP) before interest expense, interest and other income, tax, depreciation and amortization, gains or losses on the sale of rental property, and loss on impairments. Adjusted EBITDAre further excludes straight-line rent adjustments, non-cash compensation expense, amortization of above and below market leases, net, gain (loss) on involuntary conversion, debt extinguishment and modification expenses, and other non-recurring items.  

We define Annualized Adjusted EBITDAre as Adjusted EBITDAre multiplied by four.

We define Run Rate Adjusted EBITDAre as Adjusted EBITDAre plus incremental Adjusted EBITDAre adjusted for a full period of acquisitions and dispositions. Run Rate Adjusted EBITDAre does not reflect the Company's historical results and does not predict future results, which may be substantially different.

We define Annualized Run Rate Adjusted EBITDAre as Run Rate Adjusted EBITDAre excluding allowable one-time items multiplied by four plus allowable one-time items.

EBITDAre, Adjusted EBITDAre, and Run Rate Adjusted EBITDAre should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, and we believe that to understand our performance further, EBITDAre, Adjusted EBITDAre, and Run Rate Adjusted EBITDAre should be compared with our reported net income or net loss in accordance with GAAP, as presented in our consolidated financial statements. We believe that EBITDAre, Adjusted EBITDAre, and Run Rate Adjusted EBITDAre are helpful to investors as supplemental measures of the operating performance of a real estate company because they are direct measures of the actual operating results of our properties. We also use these measures in ratios to compare our performance to that of our industry peers. 

Funds from Operations (FFO) and Core FFO: We define FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts ("NAREIT"). FFO represents net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable operating property, gains (losses) from sales of land, impairment write-downs of depreciable real estate, rental property depreciation and amortization (excluding amortization of deferred financing costs and fair market value of debt adjustment) and after adjustments for unconsolidated partnerships and joint ventures. Core FFO excludes debt extinguishment and modification expenses and other expenses, gain (loss) on involuntary conversion, gain (loss) on swap ineffectiveness, and non-recurring other expenses.

None of FFO or Core FFO should be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, and we believe that to understand our performance further, these measurements should be compared with our reported net income or net loss in accordance with GAAP, as presented in our consolidated financial statements.  We use FFO as a supplemental performance measure because it is a widely recognized measure of the performance of REITs.  FFO may be used by investors as a basis to compare our operating performance with that of other REITs.  We and investors may use Core FFO similarly as FFO. 

However, because FFO and Core FFO exclude, among other items, depreciation and amortization and capture neither the changes in the value of our buildings that result from use or market conditions of our buildings, all of which have real economic effects and could materially impact our results from operations, the utility of these measures as measures of our performance is limited. In addition, other REITs may not calculate FFO in accordance with the NAREIT definition as we do, and, accordingly, our FFO may not be comparable to such other REITs' FFO. Similarly, our calculation of Core FFO may not be comparable to similarly titled measures disclosed by other REITs. 

GAAP: We define GAAP as generally accepted accounting principles in the United States.

Liquidity: We define Liquidity as the amount of aggregate undrawn nominal commitments the Company could immediately borrow under the Company's unsecured debt instruments, consistent with the financial covenants, plus unrestricted cash balances.

Market: We define Market as the market defined by CBRE-EA based on the building address. If the building is located outside of a CBRE-EA defined market, the city and state is reflected.

Net Debt: We define Net Debt as the outstanding principal balance of the Company's total debt, less cash and cash equivalents.

Net operating income (NOI), Cash NOI, and Run Rate Cash NOI: We define NOI as rental income, including reimbursements, less property expenses, which excludes depreciation, amortization, loss on impairments, general and administrative expenses, interest expense, interest income, gain (loss) on involuntary conversion, debt extinguishment and modification expenses, gain on sales of rental property, and other expenses.

We define Cash NOI as NOI less rental property straight-line rent adjustments and less amortization of above and below market leases, net.

We define Run Rate Cash NOI as Cash NOI plus Cash NOI adjusted for a full period of acquisitions and dispositions, less cash termination income, solar income and revenue associated with one-time tenant reimbursements of capital expenditures. Run Rate Cash NOI does not reflect the Company's historical results and does not predict future results, which may be substantially different.

We consider NOI, Cash NOI and Run Rate Cash NOI to be appropriate supplemental performance measures to net income because we believe they help us, and investors understand the core operations of our buildings. None of these measures should be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, and we believe that to understand our performance further, these measurements should be compared with our reported net income or net loss in accordance with GAAP, as presented in our consolidated financial statements. Further, our calculations of NOI, Cash NOI and Run Rate NOI may not be comparable to similarly titled measures disclosed by other REITs. 

Occupancy Rate: We define Occupancy Rate as the percentage of total leasable square footage for which either revenue recognition has commenced in accordance with GAAP or the lease term has commenced as of the close of the reporting period, whichever occurs earlier.

Operating Portfolio: We define the Operating Portfolio as all buildings that were acquired stabilized or have achieved Stabilization. The Operating Portfolio excludes non-core flex/office buildings, buildings contained in the Value Add Portfolio, and buildings classified as held for sale.

Pipeline: We define Pipeline as a point in time measure that includes all of the transactions under consideration by the Company's acquisitions group that have passed the initial screening process. The pipeline also includes transactions under contract and transactions with non-binding LOIs.

Renewal Lease: We define a Renewal Lease as a lease signed by an existing tenant to extend the term for 12 months or more, including (i) a renewal of the same space as the current lease at lease expiration, (ii) a renewal of only a portion of the current space at lease expiration, or (iii) an early renewal or workout, which ultimately does extend the original term for 12 months or more.

Repositioning: We define Repositioning as significant capital improvements made to improve the functionality of a building without causing material disruption to the tenant or Occupancy Rate.  Buildings undergoing Repositioning remain in the Operating Portfolio.

Retention: We define Retention as the percentage determined by taking Renewal Lease square footage commencing in the period divided by square footage of leases expiring in the period for assets included in the Operating Portfolio.

Same Store: We define Same Store properties as properties that were in the Operating Portfolio for the entirety of the comparative periods presented. The results for Same Store properties exclude termination fees, solar income, and revenue associated with one-time tenant reimbursements of capital expenditures. Same Store properties exclude Operating Portfolio properties with expansions placed into service or transferred from the Value Add Portfolio to the Operating Portfolio after January 1, 2024.

Stabilization: We define Stabilization for assets under development or redevelopment to occur as the earlier of achieving 90% occupancy or 12 months after completion. Stabilization for assets that were acquired and immediately added to the Value Add Portfolio occurs under the following:

• if acquired with less than 75% occupancy as of the acquisition date, Stabilization will occur upon the earlier of achieving 90% occupancy or 12 months from the acquisition date;
• if acquired and will be less than 75% occupied due to known move-outs within two years of the acquisition date, Stabilization will occur upon the earlier of achieving 90% occupancy after the known move-outs have occurred or 12 months after the known move-outs have occurred.

Straight-Line Capitalization Rate: We define Straight-Line Capitalization Rate as calculated by dividing (i) the Company's estimate of annual net operating income from the applicable property's operations stabilized for occupancy (post-lease-up for vacant properties), which is utilzing the average monthly base rent over the term of the lease and does not include termination income, solar income, miscellaneous other income, capital expenditures, general and administrative costs, reserves, tenant improvements and leasing commissions, credit loss, or vacancy loss, by (ii) the GAAP purchase price plus estimated Acquisition Capital Expenditures. These Capitalization Rate estimates are subject to risks, uncertainties, and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control, including those risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2024.

Straight-Line Rent Change (SL Rent Change): We define SL Rent Change as the percentage change in the average monthly base rent over the term of the lease that commenced during the period compared to the Comparable Lease for assets included in the Operating Portfolio. Rent under gross or similar type leases are converted to a net rent based on an estimate of the applicable recoverable expenses, and this calculation excludes the impact of any holdover rent.

Value Add Portfolio: We define the Value Add Portfolio as properties that meet any of the following criteria:

• less than 75% occupied as of the acquisition date 
• will be less than 75% occupied due to known move-outs within two years of the acquisition date; 
• out of service with significant physical renovation of the asset; 
• development. 

Weighted Average Lease Term: We define Weighted Average Lease Term as the contractual lease term in years, assuming that tenants exercise no renewal options, purchase options, or early termination rights, as of the lease start date weighted by square footage. Weighted Average Lease Term related to acquired assets reflects the remaining lease term in years as of the acquisition date weighted by square footage.

Forward-Looking Statements

This earnings release 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. STAG Industrial, Inc. (STAG) 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 STAG'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 STAG'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 STAG's most recent Annual Report on Form 10-K for the year ended December 31, 2024, as updated by the Company's subsequent reports filed with the Securities and Exchange Commission.  Accordingly, there is no assurance that STAG's expectations will be realized. Except as otherwise required by the federal securities laws, STAG 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 STAG'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

What were STAG (NYSE:STAG) third quarter 2025 net income and EPS?

STAG reported net income attributable to common stockholders of $48.6M and net income per diluted share of $0.26 for Q3 2025.

How did STAG's Core FFO per share change in Q3 2025 versus Q3 2024?

Core FFO per diluted share rose to $0.65 in Q3 2025, an increase of 8.3% versus Q3 2024.

What occupancy and Same Store Cash NOI did STAG report for Q3 2025?

STAG reported total portfolio occupancy of 95.8%, operating portfolio occupancy of 96.8%, and Same Store Cash NOI of $145.7M (+3.9% YoY).

What acquisition activity did STAG complete in Q3 2025?

STAG acquired two buildings totaling ~1.0M square feet for $101.5M in Q3 2025, at a weighted cash cap rate of 6.6%.

Did STAG complete any notable refinancing in 2025 and what are the terms?

Yes. STAG refinanced a $300M term loan on September 15, 2025; the loan now matures March 15, 2030 with an aggregate fixed rate of 1.70% through Feb 5, 2026 and 3.94% thereafter to maturity (inclusive of swaps).

What liquidity and leverage metrics did STAG report at September 30, 2025?

As of September 30, 2025, STAG reported liquidity $904.1M and Net Debt to Annualized Run Rate Adjusted EBITDAre 5.1x.