STAG INDUSTRIAL ANNOUNCES THIRD QUARTER 2026 RESULTS

A new repurchase authorization has no expiration date and does not obligate STAG to buy shares.

Rhea-AI Summary

STAG Industrial (NYSE:STAG) reported third-quarter 2026 net income of $0.37 per diluted common share, up from $0.26 a year earlier. Revenue rose to $231.045 million from $211.121 million. Core funds from operations, an adjusted earnings measure, increased 1.5% to $0.66 per diluted share. Same-store cash net operating income grew 3.5% to $159.9 million.

The company acquired two buildings for $107.9 million and sold four for $67.9 million. Cash rents on commenced operating-portfolio leases increased 23.8%; total portfolio occupancy was 95.9%. The board authorized up to $250 million in share repurchases. A fourth-quarter dividend of $0.3875 per share is payable January 15, 2027. Nine-month diluted earnings fell to $0.97 from $1.02, despite higher revenue. Quarter-end liquidity was $546.0 million, and net debt was 5.1 times annualized adjusted earnings before interest, taxes, depreciation and amortization for real estate.

27 points · 0 major

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0 major · 11 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter revenue increased to $231.045 million from $211.121 million a year earlier.
• Moderate pointThird-quarter common-stockholder net income rose 45.4% to $70.671 million; diluted earnings increased from $0.26 to $0.37.
• Moderate pointThird-quarter Core funds from operations increased 4.1% to $129.803 million; diluted per-share results rose 1.5% to $0.66.
• Moderate pointThird-quarter cash net operating income increased 10.1% to $178.663 million year over year.
• Moderate pointThird-quarter adjusted real-estate earnings before interest, taxes, depreciation and amortization increased 10.2% to $168.044 million.
• Moderate pointThird-quarter cash available for distribution increased 7.9% to $109.013 million year over year.
• Moderate pointThird-quarter acquisitions added two fully occupied buildings for $107.9 million, with a 6.9% cash capitalization rate. 1.5% of market cap
• Moderate pointPost-quarter acquisition added one 710,400-square-foot building for $55.0 million through October 26, 2026.
• Moderate pointThird-quarter property sales generated $67.9 million from four buildings totaling 1.1 million square feet.
• Moderate pointThird-quarter commenced operating-portfolio leases covered 3.6 million square feet, with cash rents up 23.8% and straight-line rents up 35.7%.
• Moderate pointRefinancing extended $350 million of term-loan principal from March 2027 to January 16, 2032. 5% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Unsettled forward equity offered $70 million in available net proceeds as of October 26, 2026. 1% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.New share repurchase authorization permits purchases of up to $250 million of common stock. 3.6% of market cap

14 minor points

• Minor pointThird-quarter same-store cash net operating income increased 3.5% to $159.865 million year over year.
• Minor pointNine-month revenue increased to $679.621 million from $624.288 million a year earlier.
• Minor pointNine-month Core funds from operations increased 6.6% to $384.092 million; diluted per-share results rose 3.7% to $1.96.
• Minor pointNine-month cash net operating income increased 8.2% to $520.800 million year over year.
• Minor pointNine-month same-store cash net operating income increased 3.9% to $476.503 million year over year.
• Minor pointNine-month adjusted real-estate earnings before interest, taxes, depreciation and amortization increased 8.4% to $488.714 million.
• Minor pointNine-month cash available for distribution increased 4.5% to $320.127 million year over year.
• Minor pointThird-quarter lease retention was 90.3% on 2.9 million square feet of expiring leases.
• Minor pointNine-month commenced operating-portfolio leases covered 15,226,654 square feet, with cash rents up 21.2% and straight-line rents up 36.4%.
• Minor pointDevelopment leasing included nine leases totaling one million square feet signed or commenced year to date.
• Minor pointNew development leases brought Reno to 62% leased and Charlotte to 100% leased.
• Minor pointMaturing fixed-rate senior unsecured notes totaling $50 million were repaid July 1, 2026.
• Minor pointRefinancing secured five basis points of savings across all term loans and the unsecured credit facility.
• Minor pointS&P Global Ratings assigned a BBB investment-grade rating with a stable outlook on August 6, 2026.

Negative

• Moderate point. Forward-looking: it has not happened yet and may not happen.Refinanced term-loan interest rises from 3.53% to 4.79% in March 2027, including interest-rate swaps.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Third-quarter forward equity sales covered 1.4 million shares at an average gross price of $39.10, creating potential dilution.
• Moderate pointUnsecured credit facility borrowings increased to $463.000 million from $262.000 million at December 31, 2025.
• Minor pointNine-month common-stockholder net income fell 2.3% to $185.510 million; diluted earnings declined 4.9% to $0.97.
• Minor point. Forward-looking: it has not happened yet and may not happen.Third-quarter forward sales delivered no net proceeds; settlement is required by the agreed-upon maturity date.

6 minor points

• Minor pointCash and cash equivalents fell to $12.222 million from $14.910 million at December 31, 2025.
• Minor pointThird-quarter property expenses increased to $46.236 million from $42.168 million a year earlier.
• Minor pointThird-quarter general and administrative expenses increased to $14.830 million from $12.173 million a year earlier.
• Minor pointThird-quarter depreciation and amortization increased to $80.548 million from $75.963 million a year earlier.
• Minor pointThird-quarter other expenses increased to $805,000 from $563,000 a year earlier.
• Minor pointThird-quarter commenced operating leases carried $1.46 per square foot in commissions and $0.19 in tenant improvements.

News Explained

STAG reports year-to-date forward sales of 3.4 million shares for $131.3 million; it received no net proceeds from forward sales during the third quarter. As of October 26, 2026, $70 million in net forward proceeds remained unsettled, so that cash had not yet been received.

Key Figures

Net income per diluted share: $0.37 vs. $0.26 Net income attributable to common stockholders: $70.7 million vs. $48.6 million Core FFO per diluted share: $0.66 vs. $0.65; +1.5% +5 more

Net income per diluted share

$0.37 vs. $0.26

Q3 2026 vs. Q3 2025

Net income attributable to common stockholders

$70.7 million vs. $48.6 million

Q3 2026 vs. Q3 2025

Core FFO per diluted share

$0.66 vs. $0.65; +1.5%

Q3 2026 vs. Q3 2025

Same Store Cash NOI

$159.9 million; +3.5%

Q3 2026 vs. Q3 2025

Acquisition purchase price

$107.9 million

Two buildings acquired in Q3 2026

Cash rent change

23.8%

Operating Portfolio leases commenced in Q3 2026

Quarterly dividend

$0.3875 per share

Q4 2026 dividend, payable January 15, 2027

Share repurchase authorization

Up to $250 million

New authorization; repurchases are not obligated

Previous Earnings Reports

1 past event · Latest: Jul 28

Same Type 1 event

1. Jul 28

   Q2 2026 earnings

   24h Move

   -4.4%

   Core FFO per diluted share and Same Store Cash NOI both increased year over year.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

core ffo, same store cash noi, atm offering, straight-line capitalization rate

4 terms

core ffo financial

"Achieved $0.66 of Core FFO per diluted share for the third quarter of 2026"

Core FFO (Core Funds From Operations) is a real estate industry measure of a property owner's recurring cash earnings calculated by starting with net income and removing non-cash accounting items and one-time gains or losses so the number reflects ongoing operating performance. Investors use it like a trimmed-down paycheck: it helps compare cash-generating ability across periods and companies by focusing on the stable, repeatable income rather than temporary or accounting-driven swings.

same store cash noi financial

"Produced Same Store Cash NOI of $159.9 million for the third quarter of 2026"

Same-store cash NOI is a real estate metric that measures the cash profit a property or group of properties generated from operations over two comparable periods, excluding one-time items and accounting adjustments that don’t affect actual cash flow. It compares only properties owned and open in both periods—like comparing the same set of stores month to month—so investors can see true operational growth or decline without distortion from acquisitions, dispositions, or non-cash accounting entries. This helps investors judge recurring income quality and cash-generating performance.

atm offering financial

"under the ATM common stock offering program"

An at-the-market offering is a way for a company to sell new shares of its stock directly into the stock market over time, usually through a designated sales program. This approach allows the company to raise funds gradually as needed, similar to adding small amounts of fuel to a car rather than filling the tank all at once. For investors, it can influence the company's stock price and provide insights into its financing plans.

straight-line capitalization rate financial

"with a Cash Capitalization Rate of 6.9% and a Straight-Line Capitalization Rate of 7.2%"

The straight-line capitalization rate is the ratio used to value real estate when net operating income (NOI) has been 'straight-lined' — that is, when uneven rental payments (rent steps, free rent, or rent abatements) are averaged over the lease term for accounting or valuation purposes. It equals that straight-lined annual NOI divided by the property's value or purchase price; it shows the yield implied by the smoothed, accounting-based income stream rather than by actual cash receipts. Because it relies on averaged (non-cash) income, it can differ from a cap rate calculated from actual cash flows and should be understood as reflecting income recognition conventions rather than immediate cash yield.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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BOSTON, Oct. 27, 2026 /PRNewswire/ -- STAG Industrial, Inc. (the "Company") (NYSE:STAG), today announced its financial and operating results for the quarter ended September 30, 2026.

"The third quarter built on our leasing and development progress from the first half of the year, aided by a continued improvement in industrial fundamentals," said Bill Crooker, President and Chief Executive Officer of the Company. "We expect to deliver another strong operational year while maintaining a healthy balance sheet."

Third Quarter 2026 Highlights

• Reported $0.37 of net income per basic and diluted common share for the third quarter of 2026, compared to $0.26 of net income per basic and diluted common share for the third quarter of 2025. Reported $70.7 million of net income attributable to common stockholders for the third quarter of 2026, compared to net income attributable to common stockholders of $48.6 million for the third quarter of 2025.
• Achieved $0.66 of Core FFO per diluted share for the third quarter of 2026, an increase of 1.5% compared to the third quarter of 2025 Core FFO per diluted share of $0.65.
• Produced Same Store Cash NOI of $159.9 million for the third quarter of 2026, an increase of 3.5% compared to the third quarter of 2025 of $154.5 million.
• Acquired two buildings in the third quarter of 2026, consisting of 1.1 million square feet, for $107.9 million, with a Cash Capitalization Rate of 6.9% and a Straight-Line Capitalization Rate of 7.2%.
• Sold four buildings in the third quarter of 2026, consisting of 1.1 million square feet, for $67.9 million.
• Achieved an Occupancy Rate of 95.9% on the total portfolio and 96.2% on the Operating Portfolio as of September 30, 2026.
• Commenced Operating Portfolio leases of 3.6 million square feet for the third quarter of 2026, resulting in a Cash Rent Change and Straight-Line Rent Change of 23.8% and 35.7%, respectively.
• Experienced 90.3% Retention for 2.9 million square feet of leases expiring in the quarter.
• Signed two leases totaling 68,534 square feet of warehouse and distribution space across the Company's development projects.
• On August 6, 2026, the Company received a 'BBB' investment grade credit rating from S&P Global Ratings with a stable outlook.

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, Wednesday, October 28, 2026 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 & YEAR TO DATE 2026 KEY FINANCIAL MEASURES
		Three months ended September 30,						Nine months ended September 30,
Metrics		2026		2025		% Change		2026		2025		% Change
(in $000s, except per share data)
Net income attributable to common stockholders		$70,671		$48,594		45.4 %		$185,510		$189,911		(2.3) %
Net income per common share — basic		$0.37		$0.26		42.3 %		$0.97		$1.02		(4.9) %
Net income per common share — diluted		$0.37		$0.26		42.3 %		$0.97		$1.02		(4.9) %
Cash NOI		$178,663		$162,252		10.1 %		$520,800		$481,137		8.2 %
Same Store Cash NOI (1)		$159,865		$154,468		3.5 %		$476,503		$458,424		3.9 %
Adjusted EBITDAre		$168,044		$152,537		10.2 %		$488,714		$450,967		8.4 %
Core FFO		$129,803		$124,707		4.1 %		$384,092		$360,468		6.6 %
Core FFO per share / unit — basic		$0.66		$0.66		0.0 %		$1.97		$1.89		4.2 %
Core FFO per share / unit — diluted		$0.66		$0.65		1.5 %		$1.96		$1.89		3.7 %
Cash Available for Distribution		$109,013		$101,007		7.9 %		$320,127		$306,322		4.5 %

(1) The Same Store pool accounted for 89.8% of the total portfolio square footage as of September 30, 2026.

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, Development and Disposition Activity

For the three months ended September 30, 2026, the Company acquired two buildings for $107.9 million with an Occupancy Rate of 100.0% upon acquisition. The chart below details the acquisition activity for the quarter:

THIRD QUARTER 2026 ACQUISITION ACTIVITY
Market	Date Acquired	Square Feet	Buildings	Purchase Price ($000s)	W.A. Lease Term (Years)	Cash Capitalization Rate	Straight-Line Capitalization Rate
Chicago, IL	9/24/2026	442,987	1	$44,518	4.1
El Paso, TX	9/24/2026	652,090	1	63,416	5.2
Total / weighted average		1,095,077	2	$107,934	4.8	6.9 %	7.2 %

The chart below details the 2026 acquisition activity and pipeline through October 26, 2026:

2026 ACQUISITION ACTIVITY AND PIPELINE DETAIL
	Square Feet	Buildings	Purchase Price ($000s)	W.A. Lease Term (Years)	Cash Capitalization Rate	Straight-Line Capitalization Rate
Q1	748,833	1	$80,713	12.4	6.1 %	7.3 %
Q2	2,630,679	7	287,139	8.2	6.1 %	6.8 %
Q3	1,095,077	2	107,934	4.8	6.9 %	7.2 %
Total / weighted average	4,474,589	10	$475,786	8.1	6.3 %	7.0 %
As of October 26, 2026
Subsequent to quarter-end acquisitions	710,400	1	$55.0 million
Pipeline	34.7 million	138	$4.0 billion

The chart below details the disposition activity for the nine months ended September 30, 2026:

2026 DISPOSITION ACTIVITY
	Square Feet	Buildings	Sale Price ($000s)
Q1	584,301	1	$30,100
Q2	299,467	2	23,088
Q3	1,122,599	4	67,875
Total	2,006,367	7	$121,063

Leasing Activity

The chart below details the leasing activity for leases commenced during the three months ended September 30, 2026:

THIRD QUARTER 2026 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	1,019,207	9	4.9	$6.28	$6.35	$1.80	$0.21	31.1 %	40.1 %
Renewal Leases	2,591,145	21	5.0	$7.17	$7.50	$1.32	$0.18	21.4 %	34.3 %	90.3 %
Total / weighted average	3,610,352	30	5.0	$6.91	$7.18	$1.46	$0.19	23.8 %	35.7 %

The chart below details the leasing activity for leases commenced during the nine months ended September 30, 2026:

2026 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	3,536,156	25	6.5	$6.59	$6.89	$2.37	$0.28	26.1 %	39.2 %
Renewal Leases	11,690,498	78	5.6	$6.33	$6.74	$1.26	$0.18	19.7 %	35.5 %	75.8 %
Total / weighted average	15,226,654	103	5.8	$6.39	$6.77	$1.51	$0.20	21.2 %	36.4 %

Additionally, for the three and nine months ended September 30, 2026, leases commenced totaling 560,519 and 946,172 square feet, respectively, related to Value Add assets and first generation leasing. These are excluded from the Operating Portfolio statistics above.

The Company signed a lease totaling 47,113 square feet of warehouse and distribution space at the Company's development project at 6980 Resource Drive in Reno, Nevada. This building is now 62% leased.

The Company signed a lease totaling 21,421 square feet of warehouse and distribution space at the Company's development project at 2745 Piedmont Commerce Street SW in Charlotte, North Carolina. This building is now 100% leased.

Year to date, the Company signed or commenced nine leases totaling one million square feet of warehouse and distribution space across the Company's development projects.

Capital Markets Activity

On July 1, 2026, the Company paid at maturity $50 million of fixed rate senior unsecured notes.

On July 16, 2026, the Company refinanced and combined $150 million term loan A and $200 million term loan F, which were scheduled to mature in March 2027. The new term loan, totaling $350 million in principal, now matures January 16, 2032. The new term loan bears an aggregate fixed interest rate, inclusive of interest rate swaps, of 3.53% until March 2027 and will bear an aggregate fixed interest rate, inclusive of interest rate swaps, of 4.79% from March 2027 through January 16, 2032. Through the refinance, the Company also obtained a five basis points savings across all term loans and the Unsecured Credit Facility.

On August 6, 2026, the Company received a 'BBB' investment grade credit rating from S&P Global Ratings with a stable outlook.

As of September 30, 2026, Net Debt to Annualized Run Rate Adjusted EBITDAre was 5.1x and Liquidity was $546.0 million.

In the third quarter of 2026, the Company sold 1.4 million shares on a forward basis under the ATM common stock offering program at an average gross price of $39.10, or $54.3 million.

As of October 26, 2026, the Company sold 3.4 million shares on a forward basis under the ATM common stock offering program at an average gross price of $39.00 per share, or $131.3 million in the aggregate, during the year. The aforementioned equity activity has not changed since our previous disclosure on July 28, 2026.

In the third quarter of 2026, the Company did not receive net proceeds related to forward sales that occurred during the year under the Company's ATM offering program.

The Company does not initially receive any proceeds from the sale of shares on a forward basis and has until the agreed-upon maturity date (typically one year) to settle the forward contract.

The Company has total forward equity net proceeds of $70 million available unsettled as of October 26, 2026.

Quarterly Dividend Declaration and New Share Repurchase Authorization

On October 26, 2026, the Company's Board of Directors authorized a dividend in the amount of $0.3875 per share for the fourth quarter of 2026, payable in cash on January 15, 2027, to common stockholders and common unit holders of record as of December 31, 2026.

On October 26, 2026, the Company's Board of Directors authorized a new share repurchase program under which the Company may repurchase up to $250 million of common stock. Purchases may be made from time to time through open market transactions, privately negotiated transactions, or other methods permitted under applicable securities laws. The Company will determine the timing, manner, and volume of repurchases, if any, based on prevailing market conditions, the trading price of the common stock, available liquidity, competing investment opportunities, and other considerations. The repurchase authorization does not have an expiration date, does not obligate the Company to repurchase any dollar amount or number of shares, and may be amended, suspended, or discontinued by the Company's Board of Directors at any time.

Conference Call

The Company will host a conference call tomorrow, Wednesday, October 28, 2026, 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 13762978.

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, 2026		December 31, 2025
Assets
Rental Property:
Land	$             853,182		$             811,569
Buildings and improvements, net of accumulated depreciation of $1,261,591 and $1,119,931, respectively	5,860,763		5,593,471
Deferred leasing intangibles, net of accumulated amortization of $477,696 and $425,502, respectively	398,436		394,967
Total rental property, net	7,112,381		6,800,007
Cash and cash equivalents	12,222		14,910
Restricted cash	670		85,973
Tenant accounts receivable	168,240		156,458
Prepaid expenses and other assets	126,090		104,484
Interest rate swaps	38,609		13,529
Operating lease right-of-use assets	46,273		32,708
Total assets	$           7,504,485		$           7,208,069
Liabilities and Equity
Liabilities:
Unsecured credit facility	$              463,000		$              262,000
Unsecured term loans, net	1,020,550		1,021,341
Unsecured notes, net	1,918,147		1,966,994
Mortgage note, net	3,814		3,980
Accounts payable, accrued expenses and other liabilities	160,134		135,397
Interest rate swaps	—		1,310
Tenant prepaid rent and security deposits	59,344		59,225
Dividends and distributions payable	76,241		24,187
Deferred leasing intangibles, net of accumulated amortization of $36,010 and $34,098, respectively	22,781		25,566
Operating lease liabilities	51,795		37,040
Total liabilities	$           3,775,806		$           3,537,040
Equity:
Preferred stock, par value $0.01 per share, 20,000,000 shares authorized at September 30, 2026 and December 31, 2025; none issued or outstanding	—		—
Common stock, par value $0.01 per share, 300,000,000 shares authorized at September 30, 2026 and December 31, 2025, 192,819,897 and 191,005,261 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively	1,928		1,910
Additional paid-in capital	4,683,517		4,616,888
Cumulative dividends in excess of earnings	(1,072,893)		(1,034,954)
Accumulated other comprehensive income	37,720		11,853
Total stockholders' equity	3,650,272		3,595,697
Noncontrolling interest in operating partnership	74,417		71,342
Noncontrolling interest in joint ventures	3,990		3,990
Total equity	$           3,728,679		$           3,671,029
Total liabilities and equity	$           7,504,485		$           7,208,069

 

CONSOLIDATED STATEMENTS OF OPERATIONS
STAG Industrial, Inc.
(unaudited, in thousands, except per share data)
	Three months ended September 30,				Nine months ended September 30,
	2026		2025		2026		2025
Revenue
Rental income	$       230,970		$       209,995		$       678,346		$       622,795
Other income	75		1,126		1,275		1,493
Total revenue	231,045		211,121		679,621		624,288
Expenses
Property	46,236		42,168		138,580		126,249
General and administrative	14,830		12,173		42,228		38,380
Depreciation and amortization	80,548		75,963		241,388		224,336
Loss on impairment	—		—		—		888
Other expenses	805		563		1,698		1,077
Total expenses	142,419		130,867		423,894		390,930
Other income (expense)
Interest and other income	4		372		165		380
Interest expense	(39,126)		(31,670)		(112,506)		(97,817)
Debt extinguishment and modification expenses	(1,592)		(1,503)		(1,592)		(1,503)
Gain on involuntary conversion	—		—		—		1,855
Gain on the sales of rental property, net	24,244		2,196		47,689		57,801
Total other income (expense)	(16,470)		(30,605)		(66,244)		(39,284)
Net income	$        72,156		$        49,649		$       189,483		$       194,074
Less: income attributable to noncontrolling interest in operating partnership	1,447		1,013		3,858		4,035
Net income attributable to STAG Industrial, Inc.	$        70,709		$        48,636		$       185,625		$       190,039
Less: amount allocated to participating securities	38		42		115		128
Net income attributable to common stockholders	$        70,671		$        48,594		$       185,510		$       189,911
Weighted average common shares outstanding — basic	192,716		186,593		191,637		186,533
Weighted average common shares outstanding — diluted	192,907		186,840		191,832		186,837
Net income per share — basic and diluted
Net income per share attributable to common stockholders — basic	$           0.37		$           0.26		$           0.97		$           1.02
Net income per share attributable to common stockholders — diluted	$           0.37		$           0.26		$           0.97		$           1.02

 

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
STAG Industrial, Inc.
(unaudited, in thousands)
	Three months ended September 30,				Nine months ended September 30,
	2026		2025		2026		2025
NET OPERATING INCOME RECONCILIATION
Net income	$         72,156		$         49,649		$       189,483		$       194,074
General and administrative	14,830		12,173		42,228		38,380
Depreciation and amortization	80,548		75,963		241,388		224,336
Interest and other income	(4)		(372)		(165)		(380)
Interest expense	39,126		31,670		112,506		97,817
Loss on impairment	—		—		—		888
Gain on involuntary conversion	—		—		—		(1,855)
Debt extinguishment and modification expenses	1,592		1,503		1,592		1,503
Other expenses	805		563		1,698		1,077
Gain on the sales of rental property, net	(24,244)		(2,196)		(47,689)		(57,801)
Net operating income	$       184,809		$       168,953		$       541,041		$       498,039
Net operating income	$       184,809		$       168,953		$       541,041		$       498,039
Rental property straight-line rent adjustments, net	(5,835)		(6,034)		(19,093)		(15,008)
Amortization of above and below market leases, net	(311)		(667)		(1,148)		(1,894)
Cash net operating income	$       178,663		$       162,252		$       520,800		$       481,137
Cash net operating income	$       178,663
Cash NOI from acquisition and disposition timing	1,904
Cash termination, solar and other income	(2,822)
Run Rate Cash NOI	$       177,745
Same Store Portfolio NOI
Total NOI	$       184,809		$       168,953		$       541,041		$       498,039
Less: NOI non-same-store properties	(20,088)		(7,815)		(47,557)		(20,116)
Termination, solar and other adjustments, net	(590)		(1,038)		(3,078)		(2,820)
Same Store NOI	$       164,131		$       160,100		$       490,406		$       475,103
Less: straight-line rent adjustments, net	(3,969)		(5,015)		(12,863)		(14,901)
Plus: amortization of above and below market leases, net	(297)		(617)		(1,040)		(1,778)
Same Store Cash NOI	$       159,865		$       154,468		$       476,503		$       458,424
EBITDA FOR REAL ESTATE (EBITDAre) RECONCILIATION
Net income	$         72,156		$         49,649		$       189,483		$       194,074
Depreciation and amortization	80,548		75,963		241,388		224,336
Interest and other income	(4)		(372)		(165)		(380)
Interest expense	39,126		31,670		112,506		97,817
Loss on impairment	—		—		—		888
Gain on the sales of rental property, net	(24,244)		(2,196)		(47,689)		(57,801)
EBITDAre	$       167,582		$       154,714		$       495,523		$       458,934
ADJUSTED EBITDAre RECONCILIATION
EBITDAre	$       167,582		$       154,714		$       495,523		$       458,934
Straight-line rent adjustments, net	(4,892)		(6,119)		(18,317)		(15,244)
Amortization of above and below market leases, net	(311)		(667)		(1,148)		(1,894)
Non-cash compensation expense	4,081		3,136		11,064		9,566
Non-recurring other items	(8)		(30)		—		(43)
Gain on involuntary conversion	—		—		—		(1,855)
Debt extinguishment and modification expenses	1,592		1,503		1,592		1,503
Adjusted EBITDAre	$       168,044		$       152,537		$       488,714		$       450,967

 

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,
	2026		2025		2026		2025
CORE FUNDS FROM OPERATIONS RECONCILIATION
Net income	$         72,156		$         49,649		$       189,483		$       194,074
Rental property depreciation and amortization	80,415		75,876		241,099		224,076
Loss on impairment	—		—		—		888
Gain on the sales of rental property, net	(24,244)		(2,196)		(47,689)		(57,801)
Funds from operations	$       128,327		$       123,329		$       382,893		$       361,237
Amount allocated to restricted shares of common stock and unvested units	(116)		(125)		(393)		(417)
Funds from operations attributable to common stockholders and unit holders	$       128,211		$       123,204		$       382,500		$       360,820
Funds from operations attributable to common stockholders and unit holders	$       128,211		$       123,204		$       382,500		$       360,820
Debt extinguishment and modification expenses	1,592		1,503		1,592		1,503
Gain on involuntary conversion	—		—		—		(1,855)
Core funds from operations	$       129,803		$       124,707		$       384,092		$       360,468
Weighted average common shares and units
Weighted average common shares outstanding	192,716		186,593		191,637		186,533
Weighted average units outstanding	3,696		3,679		3,714		3,697
Weighted average common shares and units - basic	196,412		190,272		195,351		190,230
Dilutive shares	191		247		195		304
Weighted average common shares, units, and other dilutive shares - diluted	196,603		190,519		195,546		190,534
Core funds from operations per share / unit - basic	$            0.66		$            0.66		$            1.97		$            1.89
Core funds from operations per share / unit - diluted	$            0.66		$            0.65		$            1.96		$            1.89
CASH AVAILABLE FOR DISTRIBUTION RECONCILIATION
Core funds from operations	$       129,803		$       124,707		$       384,092		$       360,468
Amount allocated to restricted shares of common stock and unvested units	116		125		393		417
Non-rental property depreciation and amortization	133		87		289		260
Straight-line rent adjustments, net	(4,892)		(6,119)		(18,317)		(15,244)
Capital expenditures	(14,869)		(11,406)		(36,084)		(27,381)
Capital expenditures reimbursed by tenants	(356)		(1,578)		(884)		(2,372)
Lease commissions and tenant improvements	(6,430)		(9,351)		(24,592)		(23,436)
Non-cash portion of interest expense	1,427		1,406		4,166		4,044
Non-cash compensation expense	4,081		3,136		11,064		9,566
Cash available for distribution	$       109,013		$       101,007		$       320,127		$       306,322

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, 2025.  

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 and proceeds from pending reverse Section 1031 like-kind exchanges that are included in restricted cash.

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, 2025.

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, 2025.

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, 2025, 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

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How did STAG Industrial perform in the third quarter of 2026?

STAG reported $0.37 in diluted earnings per common share, compared with $0.26 a year earlier. Revenue increased to $231.045 million from $211.121 million. Core funds from operations per diluted share increased 1.5% to $0.66, and same-store cash net operating income rose 3.5%.

How large is STAG Industrial's new share repurchase program?

The board authorized repurchases of up to $250 million of common stock on October 26, 2026. The authorization has no expiration date and does not require any purchases. Timing and volume depend on market conditions, the share price, liquidity and competing investment opportunities.

Who qualifies for STAG Industrial's fourth-quarter 2026 dividend?

Common stockholders and common unit holders of record on December 31, 2026 qualify for the $0.3875-per-share fourth-quarter dividend. Payment is scheduled in cash for January 15, 2027.

What is in STAG Industrial's acquisition pipeline?

As of October 26, 2026, STAG's acquisition pipeline comprised 138 buildings totaling 34.7 million square feet and $4.0 billion. These pipeline properties are separate from the completed post-quarter acquisition of one building for $55.0 million.

How much of STAG Industrial's leasing activity is excluded from its operating-portfolio statistics?

Leases related to Value Add assets and first-generation leasing totaling 560,519 square feet in the third quarter and 946,172 square feet in the first nine months of 2026 are excluded from the operating-portfolio leasing statistics.