Core Viewpoint - The article emphasizes the importance of dividend investing in quality blue-chip stocks, Business Development Companies (BDCs), and Real Estate Investment Trusts (REITs) for building a sustainable retirement income stream. Group 1: Investment Strategy - The company focuses on a buy-and-hold investment strategy, prioritizing quality over quantity in its portfolio selection [1]. - The aim is to assist lower and middle-class workers in constructing investment portfolios that consist of high-quality, dividend-paying companies [1]. Group 2: Personal Background - The analyst is a Navy veteran with a decade of experience in investment banking, specializing in industry and company research [1]. - The analyst's goal is to achieve financial independence through dividend income within the next 5-7 years [1].

Looking ahead, Crooker said STAG expects 180 million square feet of deliveries or less in 2026, “much of which will be driven by build-to-suit transactions.” He added that the company anticipates net absorption will improve in 2026, supporting another year of positive rent growth. Management expects national vacancy to peak in the first half of 2026, with an “inflection point” in the back half of 2026.Crooker attributed part of the operating momentum to an improving industrial supply environment, noting del ...

Financial Data and Key Metrics Changes - The company reported a 4.3% growth in same-store cash NOI and a 6.3% increase in core FFO per share for 2025 [5][11] - Core FFO per share was $0.66 for Q4 and $2.55 for the year, reflecting a 6.3% increase compared to 2024 [11] - The company incurred a cash credit loss of 22 basis points in 2025, with a retention rate of 75.8% for the quarter and 77.2% for the year [12] Business Line Data and Key Metrics Changes - In Q4, the company commenced 31 leases totaling 3 million sq ft, generating cash and straight-line leasing spreads of 16.3% and 27.4%, respectively [11] - The company achieved cash and straight-line leasing spreads of 24% and 38.2% for the year [12] - The acquisition volume for Q4 totaled $285.9 million, consisting of 7 buildings with cash and straight-line cap rates of 6.4% and 7%, respectively [7][8] Market Data and Key Metrics Changes - The company expects national vacancy rates to peak in the first half of 2026, with an inflection point in the back half of the year [6] - The company anticipates 180 million sq ft of deliveries in 2026, significantly lower than the 225 million sq ft expected in 2025 [100] - The Midwest markets, particularly Minneapolis, Chicago, and Indianapolis, are showing strong demand, while Southeast port markets like Jacksonville and Savannah are experiencing weakness [68][70] Company Strategy and Development Direction - The company plans to initiate a core FFO per share range between $2.60 and $2.64 for 2026, with same-store cash NOI growth expected between 2.75% and 3.25% [14] - The company raised its dividend by 4%, the largest increase since 2014, and modified the payment cadence from monthly to quarterly [10] - The company is focusing on maintaining high occupancy levels and is optimistic about leasing activity in 2026, driven by a record amount of square footage expiring [7][21] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about economic growth and increased tenant activity, expecting net absorption to improve in 2026 [6][21] - The company is not concerned about new supply coming online, as it believes developers are prudent and that any new developments will take time to materialize [33] - Management noted that the demand from tenants is real, with a broad base of interest from various sectors, including data centers [29][31] Other Important Information - The company has a strong acquisition pipeline valued at $3.6 billion, with expectations for acquisition volume in 2026 to range between $350 million and $650 million [14][22] - The company is budgeting for 957,000 sq ft of leasing in 2026, with a significant portion expected to come from build-to-suit projects [63] Q&A Session Summary Question: Inquiry about leasing environment and occupancy guidance - Management acknowledged the potential for upside in leasing activity if the current momentum continues, despite budgeting for a 9-12 month lease-up period for assets [18][20] Question: Discussion on acquisition visibility and timing - Management indicated that while the first quarter is typically slower, they are underwriting more transactions than in the previous year, with a strong pipeline [22][23] Question: Clarification on tenant activity and demand - Management confirmed that the current tenant activity reflects real demand, with a broad base of interest from various sectors, including data centers [28][29] Question: Concerns about potential overbuilding - Management expressed confidence that new supply will be introduced prudently and not until late 2027, alleviating concerns about overbuilding [33] Question: Update on market performance and rent growth - Management noted that while some markets are performing well, overall rent growth is expected to be modest, with stronger markets seeing 2-3% growth [71][75]

Financial Data and Key Metrics Changes - STAG Industrial reported a 4.3% growth in same-store cash NOI and a 6.3% increase in core FFO per share for 2025, outperforming budgeted metrics [5][12] - Core FFO per share for Q4 was $0.66, and for the year it was $2.55, reflecting a 6.3% increase compared to 2024 [11] - The company incurred a cash credit loss of 22 basis points in 2025, with a retention rate of 75.8% for the quarter and 77.2% for the year [12] Business Line Data and Key Metrics Changes - In Q4, STAG commenced 31 leases totaling 3 million sq ft, achieving cash and straight-line leasing spreads of 16.3% and 27.4%, respectively [11] - The company expects cash leasing spreads of 18%-20% for 2026, with 69% of the operating portfolio square feet already addressed for leasing [7][13] Market Data and Key Metrics Changes - The industrial supply backdrop improved, with deliveries down almost 35% compared to 2024, and STAG anticipates 180 million sq ft of deliveries in 2026 [5][6] - National vacancy rates are expected to peak in the first half of 2026, with an inflection point anticipated in the latter half of the year [6][21] Company Strategy and Development Direction - STAG plans to continue its focus on leasing and acquisitions, with a guidance range for acquisition volume set between $350 million and $650 million for 2026 [13][14] - The company raised its dividend by 4%, the largest increase since 2014, and modified the payment cadence from monthly to quarterly [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about economic growth and increased tenant activity, indicating a healthy demand across most markets [6][29] - The company is preparing for a record amount of square footage expiring in 2026, which is expected to drive leasing activity [7][21] Other Important Information - STAG's development platform includes 3.5 million sq ft of development activity, with 59% of this being completed developments [8] - The company has a strong pipeline of $3.6 billion in potential transactions, indicating healthy market conditions [22] Q&A Session Summary Question: Inquiry on leasing environment and occupancy expectations - Management acknowledged the potential for upside in leasing activity if current momentum continues, despite budgeting for a 100 basis points occupancy decline [18][20] Question: Discussion on acquisition visibility and timing - Management indicated that while the first quarter is typically slower, they are underwriting more transactions than in the previous year, with a strong pipeline [22][23] Question: Clarification on tenant activity and demand - Management confirmed that the current tenant activity reflects real demand, with increased interest from various sectors, including data centers [29][31] Question: Insights on market rent growth and concessions - Management noted that while market rent growth is expected to be modest, stronger markets may see slightly higher growth, with concessions remaining stable [71][60] Question: Update on development leasing guidance for 2026 - Management provided guidance for 957,000 sq ft of leasing in 2026, including a build-to-suit project [63]

Financial Data and Key Metrics Changes - STAG Industrial reported a 6.3% increase in core FFO per share for the year, reaching $2.55, and a 4.3% growth in same-store cash NOI [4][11] - The company achieved a cash credit loss of 22 basis points in 2025, with a retention rate of 75.8% for the quarter and 77.2% for the year [12][14] - The company raised its dividend by 4%, marking the largest increase since 2014, and modified the payment cadence from monthly to quarterly [9][10] Business Line Data and Key Metrics Changes - In Q4 2025, STAG commenced 31 leases totaling 3 million sq ft, with cash and straight-line leasing spreads of 16.3% and 27.4%, respectively [11] - The company reported that 69% of the operating portfolio square feet expected to lease in 2026 has been addressed, projecting cash leasing spreads of 18%-20% for the year [6][12] Market Data and Key Metrics Changes - The industrial supply backdrop improved, with deliveries down almost 35% compared to 2024, and STAG expects 180 million sq ft of deliveries in 2026 [5][14] - National vacancy rates are anticipated to peak in the first half of 2026, with an inflection point expected in the latter half of the year [5][22] Company Strategy and Development Direction - STAG Industrial aims to capitalize on a record amount of square footage expiring in 2026, with a focus on maintaining high occupancy levels and positive rent growth [6][12] - The company is actively pursuing acquisitions, with a guidance range of $350 million to $650 million for acquisition volume in 2026 [14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding economic growth and tenant activity, noting that many business leaders are becoming more engaged [5][30] - The company anticipates that the leasing environment will improve, with expectations for net absorption to increase in 2026 [5][22] Other Important Information - STAG has a strong pipeline of $3.6 billion in potential transactions, indicating healthy market conditions for acquisitions [24] - The company is not planning to hold land for development opportunities in 2026 but is exploring phased developments for future growth [44][45] Q&A Session Summary Question: Inquiry about leasing environment and occupancy guidance - Management acknowledged the potential for upside in leasing activity if the current momentum continues, despite budgeting for a 9-12 month lease-up period for rolling square footage [19][22] Question: Discussion on acquisition visibility and timing - Management indicated that while the first quarter is typically slower for acquisitions, they are underwriting more deals than in the previous year, with a strong pipeline [24] Question: Clarification on tenant activity and demand - Management confirmed that the current tenant activity reflects real demand, with increased interest from various sectors, including data centers [30][32] Question: Insights on development starts and appetite for new projects - Management expressed eagerness to start new speculative projects, contingent on sourcing opportunities and favorable returns [56] Question: Commentary on concessions and free rent trends - Management noted that concessions have remained stable, with minimal changes in tenant improvement requests, indicating a healthy leasing environment [60][62]

SUPPLEMENTAL INFORMATION UNAUDITED FOURTH QUARTER 2025 Forward-Looking Statements This supplemental information package 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 o ...

分组1 - Stag Industrial (STAG) reported quarterly funds from operations (FFO) of $0.66 per share, exceeding the Zacks Consensus Estimate of $0.63 per share, and up from $0.61 per share a year ago, representing an FFO surprise of +4.76% [1] - The company achieved revenues of $220.9 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 5.27%, compared to $199.32 million in the same quarter last year [2] - Stag has outperformed the S&P 500 with a 7.3% increase since the beginning of the year, while the S&P 500 gained 1.4% [3] 分组2 - The current consensus FFO estimate for the upcoming quarter is $0.64 on revenues of $209.46 million, and for the current fiscal year, it is $2.61 on revenues of $848.18 million [7] - The Zacks Industry Rank for REIT and Equity Trust - Other is currently in the bottom 29% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]

Portfolio and Occupancy - As of December 31, 2025, the company owned 601 buildings across 41 states, totaling approximately 120.0 million rentable square feet, with an occupancy rate of approximately 96.4%[27] - The Operating Portfolio was approximately 97.2% leased, with a Straight-line Rent Change of approximately 38.2% for new and renewal leases in 2025, compared to 41.8% in 2024[28] - Cash Rent Change for new and renewal leases grew approximately 24.0% in 2025, down from 28.3% in 2024[28] - The company has seven development projects as of December 31, 2025, which are not included in the building count[27] - 21.8% of total annualized base rental revenue leases are set to expire before December 31, 2027, which may impact future cash flows[68] - 159 buildings totaling approximately 29.3 million rentable square feet have been acquired in the past five years, which may have unknown characteristics affecting their valuation[65] - The company has a weighted average lease term of approximately 4.3 years as of December 31, 2025[147] - Scheduled lease expirations for 2026 represent 8.1% of total annualized base rental revenue, amounting to $56.8 million[148] Financial Performance and Guidance - The company reported a revenue increase of 15% year-over-year, reaching $1.6 billion in the last quarter[1] - The company provided a future outlook with a revenue guidance of $1.8 billion for the next quarter, representing a 12% increase[3] - New product launches contributed to a 25% increase in sales, with the latest product line accounting for $400 million in revenue[4] - The company reported a 10% reduction in operational costs due to efficiency improvements[9] - Performance guidance for the next quarter anticipates a growth rate of approximately 10% year-over-year[137] Market Strategy and Expansion - The company focuses on acquiring assets in CBRE-EA Tier 1 industrial markets, believing this strategy will generate attractive returns for stockholders[31] - The company is expanding its footprint with notable locations including 2,298,466 square feet in Gibsonton and 1,237,090 square feet in Orlando[134] - Future growth strategies include increasing rentable space in key markets such as Tampa, which has 178,560 square feet[134] - Market expansion efforts are evident with new locations in Savannah and Statham, totaling 1,504,300 and 1,225,692 square feet respectively[134] - The company is exploring acquisition opportunities to strengthen its position in the market, targeting firms with complementary technologies[7] Risks and Challenges - Economic downturns in the industrial real estate sector could adversely affect the company's performance, as all properties are industrial[63] - The company faces significant competition for tenants, which may pressure rental rates and occupancy levels[70] - Inflation and rising interest rates could negatively impact financing costs and general expenses, affecting cash flows[61] - Risks associated with tenant defaults could significantly impact rental revenue and property values[71] - Future public health crises could adversely affect the company's business, operating results, financial condition, and cash flows, impacting demand for real estate and tenant rent payments[73] Compliance and Regulatory Matters - The company aims to maintain its qualification as a REIT, which generally exempts it from federal income tax as long as it distributes income to stockholders[26] - The company is required to distribute at least 90% of its net taxable income to maintain REIT qualification, which may limit its ability to fund future capital needs from operating cash flow[74] - The company may be subject to federal income tax if it distributes less than 100% of its net taxable income, potentially affecting its financial flexibility[75] - Compliance with the Americans with Disabilities Act (ADA) may result in substantial costs, affecting cash flows and available distributions[102] Cybersecurity and Operational Risks - The company faces risks associated with cybersecurity threats, which could disrupt operations and financial reporting[120] - The company has implemented a comprehensive cybersecurity risk management strategy involving senior management, including the Vice President of Information Technology and the General Counsel, to monitor and respond to cybersecurity threats[130] - The company conducts regular mandatory cybersecurity training for employees to enhance awareness and preparedness against potential threats[130] - The company carries comprehensive cyber liability insurance to cover first-party and third-party losses, including data restoration costs and crisis management expenses[130] Employee and Corporate Governance - As of December 31, 2025, STAG Industrial, Inc. had 93 employees, none of whom were represented by a labor union[47] - The company is committed to providing competitive compensation and benefits to attract and retain top talent[50] - The board of directors has significant authority to make decisions without stockholder approval, which could impact operating expenses and asset values[82] - Conflicts of interest may arise due to fiduciary duties to limited partners in the Operating Partnership, potentially impeding decisions that benefit stockholders[84]

Financial Performance - Reported net income attributable to common stockholders of $83.4 million for Q4 2025, a 63.9% increase from $50.9 million in Q4 2024[4] - For the year ended December 31, 2025, net income attributable to common stockholders was $273.4 million, a 44.6% increase from $189.0 million in 2024[5] - Net income for the three months ended December 31, 2025, was $85,196,000, compared to $52,008,000 for the same period in 2024, representing a year-over-year increase of 63.8%[31] - The company reported a net income per share attributable to common stockholders of $1.46 for the year ended December 31, 2025, up from $1.04 in 2024[25] Revenue and Income Metrics - Total revenue for the year ended December 31, 2025, increased to $845.184 million, up 10.1% from $767.384 million in 2024[25] - Net operating income for the year ended December 31, 2025, was $673.359 million, up 9.9% from $612.556 million in 2024[28] - Adjusted EBITDAre for the year ended December 31, 2025, was $610.319 million, a 9.5% increase from $557.350 million in 2024[28] - Funds from operations (FFO) for the year ended December 31, 2025, reached $487,857,000, up from $458,741,000 in 2024, indicating a growth of 6.5%[31] Cash Flow and Distribution - Cash available for distribution for the year ended December 31, 2025, was $405,357,000, compared to $369,814,000 in 2024, marking a rise of 9.6%[31] - Cash and cash equivalents decreased to $14.910 million as of December 31, 2025, down from $36.284 million in 2024[23] Operational Metrics - Achieved Core FFO per diluted share of $0.66 for Q4 2025, an 8.2% increase compared to $0.61 in Q4 2024[4] - Produced Same Store Cash NOI of $148.5 million for Q4 2025, reflecting a 5.4% increase from $140.8 million in Q4 2024[4] - Same Store Cash NOI for the year ended December 31, 2025, was $579.410 million, compared to $555.620 million in 2024, indicating a growth of 4.3%[28] - The occupancy rate for the operating portfolio was not explicitly stated but is a key metric for assessing property performance[52] Acquisitions and Leasing - Acquired seven buildings totaling 2.2 million square feet for $285.9 million in Q4 2025, with a Cash Capitalization Rate of 6.4%[4] - Commenced leases totaling 3.0 million square feet in Q4 2025, resulting in a Cash Rent Change of 16.3%[4] - The Company addressed 69.2% of expected 2026 new and renewal leasing, achieving a Cash Rent Change of 20.0%[18] - The total acquisition pipeline as of February 10, 2026, includes 30.5 million square feet valued at $3.6 billion[10] Shareholder Metrics - Weighted average common shares outstanding increased to 186.844 million for the year ended December 31, 2025, from 182.160 million in 2024[25] - The weighted average common shares outstanding increased to 187,767,000 for the three months ended December 31, 2025, from 182,936,000 in 2024, a growth of 2.3%[31] - Core funds from operations per share (basic) for the year ended December 31, 2025, was $2.56, up from $2.40 in 2024, representing a 6.7% increase[31] Debt and Liabilities - Total liabilities rose to $3.537 billion as of December 31, 2025, an increase of 7.1% from $3.304 billion in 2024[23] - The company reported a total debt extinguishment and modification expense of $1,503,000 for the year ended December 31, 2025, compared to $101,000 in 2024[31] Forward-Looking Statements - Forward-looking statements are subject to risks and uncertainties that could materially affect actual results, as outlined in the Annual Report on Form 10-K for the year ended December 31, 2025[63]

Core Insights - STAG Industrial, Inc. reported strong operating results for Q4 and full year 2025, driven by increased leasing activity and prudent capital allocation [1][2][3] - The company achieved a Same Store Cash NOI growth of 5.4% in Q4 2025 compared to Q4 2024, and a 4.3% increase for the full year [1][3][5] Financial Performance - Q4 2025 net income attributable to common stockholders was $83.4 million, a 63.9% increase from $50.9 million in Q4 2024 [1][2] - Core FFO per diluted share for Q4 2025 was $0.66, up 8.2% from $0.61 in Q4 2024 [1][3] - Full year 2025 net income attributable to common stockholders reached $273.4 million, a 44.6% increase from $189.0 million in 2024 [1][2] Leasing Activity - The company signed a lease for 78,414 square feet of warehouse space in Concord, North Carolina, after the quarter ended [1][2] - Retention rate for leases expiring in Q4 2025 was 75.8% for 2.8 million square feet [1][2] - Total leasing activity for the year included 14.4 million square feet, with new leases accounting for 3.4 million square feet [2][3] Acquisition and Disposition - In Q4 2025, STAG acquired seven buildings totaling 2.2 million square feet for $285.9 million, with a Cash Capitalization Rate of 6.4% [1][2] - The company sold eight buildings in Q4 2025, totaling 1.6 million square feet for $88.8 million [1][2] Occupancy and Portfolio Metrics - As of December 31, 2025, the overall occupancy rate was 96.4%, with the Operating Portfolio at 97.2% [1][2] - Same Store Cash NOI for Q4 2025 was $148.5 million, compared to $140.8 million in Q4 2024 [1][3] Future Outlook - The company plans to maintain its focus on financial and operational discipline as it moves into 2026 [1][2] - A conference call is scheduled for February 12, 2026, to discuss the quarter's results and future strategies [1][2]