STAG Insider Converts LTIP Units and Sells 25,000 Shares for $36.91 Avg
Rhea-AI Filing Summary
STAG Industrial insider transaction summary: On 09/05/2025 director Benjamin S. Butcher converted 25,000 LTIP Units into 25,000 OP Units and the Issuer elected to redeem those OP Units in exchange for 25,000 shares of STAG common stock. The reporting person sold 25,000 shares on the same date at a weighted average price of $36.9082 (sales ranged $36.90–$37.00). After these transactions the reporting person beneficially owned 7,562 shares of common stock. The filing also discloses larger outstanding equity interests in incentive and partnership units held by the reporting person as reported on the Form 4.
Positive
- Transparency: Filing discloses conversion mechanics, redemption election, sale price range, and weighted average price
- Compensation realization: LTIP Units converted and redeemed into common stock, enabling clear alignment of incentive awards with equity
Negative
- Insider sale: Director sold 25,000 shares, reducing direct common stock holdings to 7,562 shares
- Potential dilution/ownership change: Conversion and redemption increased the number of shares issued to the reporting person before sale (25,000), which may affect outstanding share composition
Insights
TL;DR: Insider converted incentive units to equity and sold 25,000 shares at ~$36.91, leaving a small direct equity stake.
The transaction shows a routine conversion of LTIP Units into OP Units followed by redemption into common shares and a concurrent open-market sale of 25,000 shares at a weighted average price of $36.9082. This reduces the reporting person’s direct common-share holding to 7,562 shares while leaving substantial indirect interests in LTIP and partnership units as disclosed. The activity appears administrative and liquidity-driven rather than an extraordinary corporate event.
TL;DR: Director executed a permitted plan conversion and sale; disclosure is complete and consistent with Section 16 rules.
The Form 4 documents conversion mechanics (nonforfeitable LTIP Units achieving parity, conversion to OP Units, and issuer election to redeem in stock) and provides sales price range and weighted average. Filings like this are standard for insiders monetizing vested incentive compensation while maintaining indirect partnership interests. No governance red flags are evident from the disclosed facts alone.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Conversion | LTIP Units | 25,000 | $0.00 | -- |
| Conversion | Partnership Units | 25,000 | $0.00 | -- |
| Conversion | Partnership Units | 25,000 | $0.00 | -- |
| Conversion | Common Stock | 25,000 | $0.00 | -- |
| Sale | Common Stock | 25,000 | $36.9082 | $923K |
Footnotes (1)
- On September 5, 2025, the reporting person converted a total of 25,000 long-term incentive plan units ("LTIP Units") of STAG Industrial Operating Partnership, L.P., a Delaware limited partnership (the "Operating Partnership"), of which STAG Industrial, Inc., a Maryland corporation (the "Issuer"), is the sole member of the general partner, into 25,000 common units of limited partnership of the Operating Partnership ("OP Units") and redeemed 25,000 OP Units. The LTIP Units are convertible into OP Units as they are nonforfeitable and certain conditions to parity have been satisfied. The OP Units held by the reporting person are redeemable for cash equal to the current market value of one share of the Issuer's common stock or, at the Issuer's election, for shares of the Issuer's common stock on a one-for-one basis. The Issuer elected to redeem the reporting person's OP Units with common stock. This represents the weighted average sales price. On September 5, 2025, sales prices ranged from $36.90 to $37.00. Upon request by the Securities and Exchange Commission (the "SEC"), the Issuer or a stockholder of the Issuer, the reporting person will provide full information regarding the number of shares sold at each separate price. Represents LTIP Units granted to the reporting person pursuant to the Equity Incentive Plan. Over time, the LTIP Units can achieve full parity with OP Units for all purposes. If such parity is reached, non-forfeitable LTIP Units may be converted into OP Units and then may be redeemed for cash equal to the then-current market value of one share of the Issuer's common stock or, at the Issuer's election, for shares of the Issuer's common stock on a one-for-one basis. LTIP Units do not have an expiration date. Represents OP Units in the Operating Partnership. OP Units may be redeemed for cash equal to the then-current market value of one share of the Issuer's common stock or, at the Issuer's election, for shares of the Issuer's common stock on a one-for-one basis. The OP Units are vested as of the date of issuance and have no expiration date.
