Portfolio Overview - The company's portfolio consists of 600 buildings across 41 states, totaling 1183 million square feet[9] - The total portfolio occupancy is 963%, with the operating portfolio at 970%[9] - The weighted average lease term is 42 years, with a weighted average rent of $579 per square foot[9] Financial Performance - For the three months ended June 30, 2025, rental income was $207438 thousand, compared to $186467 thousand for the same period in 2024[16] - Net income for the three months ended June 30, 2025, was $51063 thousand, compared to $61074 thousand for the same period in 2024[19] - Same Store Cash NOI increased by 30% to $145266 thousand for the three months ended June 30, 2025, compared to $140984 thousand for the same period in 2024[40] - Core FFO per share/unit - basic is $063 for the three months ended June 30, 2025, compared to $061 for the same period in 2024[22] Capital Structure and Debt - Net Debt to Annualized Run Rate Adjusted EBITDAre ratio is 51x[9] - Liquidity stands at $9612 million[53] - The company's unsecured credit facility has a committed balance of $10000 million, with a principal balance of $510 million and a Term SOFR + 0775% interest rate[56] Acquisitions and Dispositions - In the second quarter of 2025, the company acquired one property in Chicago, IL, with 183200 square feet for $18399 thousand, with a cash capitalization rate of 71%[27] - Disposed of one property in Calhoun, GA, with 151200 square feet for gross proceeds of $9100 thousand in the second quarter of 2025[33]

分组1 - Stag Industrial (STAG) reported quarterly funds from operations (FFO) of $0.63 per share, matching the Zacks Consensus Estimate and showing an increase from $0.61 per share a year ago [1] - The company achieved revenues of $207.59 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 0.80% and up from $189.78 million year-over-year [2] - Stag has surpassed consensus FFO estimates three times and revenue estimates four times over the last four quarters [2] 分组2 - The stock's immediate price movement will depend on management's commentary during the earnings call and future FFO expectations [3] - Stag shares have increased by approximately 2.8% since the beginning of the year, while the S&P 500 has gained 8.6% [3] - The current consensus FFO estimate for the upcoming quarter is $0.62 on revenues of $209.75 million, and for the current fiscal year, it is $2.49 on revenues of $836.45 million [7] 分组3 - The Zacks Industry Rank places REIT and Equity Trust - Other in the top 34% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for Stag was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it will perform in line with the market [6]

[PART I. Financial Information](index=3&type=section&id=PART%20I.%20Financial%20Information) Presents the company's unaudited consolidated financial statements and related notes [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This item includes the company's unaudited consolidated financial statements, comprising balance sheets, statements of operations, comprehensive income, equity, and cash flows, along with detailed notes explaining the company's organization, accounting policies, rental property, debt, derivatives, equity, noncontrolling interests, equity incentive plan, leases, earnings per share, commitments, contingencies, and subsequent events [Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024](index=4&type=section&id=Consolidated%20Balance%20Sheets%20as%20of%20June%2030%2C%202025%20and%20December%2031%2C%202024) Presents the company's financial position including assets, liabilities, and equity at specific dates | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Total Assets | $6,825,148 | $6,833,335 | | Total Liabilities | $3,304,489 | $3,304,227 | | Total Equity | $3,520,659 | $3,529,108 | | Cash and cash equivalents | $15,379 | $36,284 | | Unsecured credit facility | $51,000 | $409,000 | | Unsecured notes, net | $1,966,291 | $1,594,092 | [Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2025 and 2024](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Details the company's revenues, expenses, and net income for specified periods | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Total revenue | $207,593 | $189,777 | $17,816 | 9.4% | | Total expenses | $128,607 | $130,148 | $(1,541) | (1.2)% | | Net income | $51,063 | $61,074 | $(10,011) | (16.4)% | | Net income per share (basic & diluted) | $0.27 | $0.33 | $(0.06) | (18.2)% | | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Total revenue | $413,167 | $377,320 | $35,847 | 9.5% | | Total expenses | $260,063 | $254,161 | $5,902 | 2.3% | | Net income | $144,425 | $98,527 | $45,898 | 46.6% | | Net income per share (basic & diluted) | $0.76 | $0.53 | $0.23 | 43.4% | [Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2025 and 2024](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Reports net income and other comprehensive income components for the periods | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Net income | $51,063 | $61,074 | $(10,011) | (16.4)% |\n| Other comprehensive income (loss) | $(7,021) | $(2,967) | $(4,054) | 136.6% |\n| Comprehensive income attributable to STAG Industrial, Inc. | $43,130 | $56,884 | $(13,754) | (24.2)% | | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Net income | $144,425 | $98,527 | $45,898 | 46.6% |\n| Other comprehensive income (loss) | $(18,002) | $4,109 | $(22,111) | (538.1)% |\n| Comprehensive income attributable to STAG Industrial, Inc. | $123,778 | $100,431 | $23,347 | 23.2% | [Consolidated Statements of Equity for the Three and Six Months Ended June 30, 2025 and 2024](index=7&type=section&id=Consolidated%20Statements%20of%20Equity%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Outlines changes in stockholders' equity and noncontrolling interests over time - Total stockholders' equity decreased from **$3.458 billion** at December 31, 2024, to **$3.445 billion** at June 30, 2025, primarily due to dividends and distributions exceeding net income, and other comprehensive loss[17](index=17&type=chunk)[18](index=18&type=chunk) - Noncontrolling interest in operating partnership increased from **$69.9 million** at December 31, 2024, to **$72.4 million** at June 30, 2025, reflecting contributions and net income allocation[17](index=17&type=chunk)[18](index=18&type=chunk) [Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Summarizes cash inflows and outflows from operating, investing, and financing activities | Cash Flow Activity (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Net cash provided by operating activities | $215,408 | $227,397 | $(11,989) | (5.3)% |\n| Net cash used in investing activities | $(89,629) | $(247,611) | $157,982 | (63.8)% |\n| Net cash provided by (used in) financing activities | $(127,327) | $32,866 | $(160,193) | (487.4)% |\n| Cash and cash equivalents and restricted cash—end of period | $35,845 | $34,520 | $1,325 | 3.8% | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures supporting the consolidated financial statements [1. Organization and Description of Business](index=10&type=section&id=1.%20Organization%20and%20Description%20of%20Business) Describes the company's structure, operations, and business model - STAG Industrial, Inc operates as an UPREIT, owning and managing industrial properties across the United States[23](index=23&type=chunk) - As of June 30, 2025, the Company owned **600** industrial buildings in **41** states, with approximately **118.3 million** rentable square feet[24](index=24&type=chunk) [2. Summary of Significant Accounting Policies](index=10&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) Outlines the key accounting principles and methods used in financial reporting - The interim financial statements are prepared in conformity with GAAP and do not include all disclosures required for complete annual financial statements[25](index=25&type=chunk) - The Company's consolidated financial statements include the accounts of STAG Industrial, Inc, its Operating Partnership, and their consolidated subsidiaries, eliminating all significant intercompany balances and transactions[26](index=26&type=chunk) - The Company manages its operations on an aggregated, single segment basis, deriving revenues from rental income[30](index=30&type=chunk) [3. Rental Property](index=11&type=section&id=3.%20Rental%20Property) Details the company's rental property portfolio, including acquisitions, dispositions, and impairment | Rental Property (in thousands) | June 30, 2025 | December 31, 2024 | | :----------------------------- | :------------ | :---------------- | | Total rental property, net | $6,500,090 | $6,495,779 |\n| Construction in progress | $110,378 | $218,616 | | Acquisitions (Six months ended June 30, 2025) | Square Feet | Buildings | Purchase Price (in thousands) | | :-------------------------------------------- | :---------- | :-------- | :---------------------------- | | Total | 576,764 | 4 | $67,181 | | Dispositions (Six months ended June 30, 2025) | Value | | :-------------------------------------------- | :-------- | | Number of buildings | 2 |\n| Building square feet (in millions) | 0.5 |\n| Proceeds from sale of rental property, net | $72,590 |\n| Gain on the sales of rental property, net | $55,605 | - The Company recognized a loss on impairment of **$888 thousand** for the three and six months ended June 30, 2025, related to a property in Lewiston, ME, due to a change in the estimated hold period[45](index=45&type=chunk) [4. Debt](index=15&type=section&id=4.%20Debt) Provides information on the company's outstanding debt, including terms and compliance | Indebtedness (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Unsecured credit facility | $51,000 | $409,000 |\n| Unsecured term loans, net | $1,022,522 | $1,021,848 |\n| Unsecured notes, net | $1,966,291 | $1,594,092 |\n| Mortgage note, net | $4,089 | $4,195 |\n| Total / weighted average interest rate | $3,043,902 | $3,029,135 |\n| Weighted average interest rate | 4.24% | N/A | - The Company redeemed **$75.0 million** of Series G Unsecured Notes at maturity on June 13, 2025, and **$100.0 million** of Series D Unsecured Notes at maturity on February 20, 2025[61](index=61&type=chunk)[63](index=63&type=chunk) - On April 15, 2025, the Company entered into a note purchase agreement for the private placement of **$550.0 million** in new senior unsecured notes (Series O, P, and Q) maturing between 2030 and 2035, with fixed annual interest rates ranging from **5.50% to 5.99%**[62](index=62&type=chunk) - The Company was in compliance with all applicable debt restrictions and financial covenants as of June 30, 2025, and December 31, 2024[64](index=64&type=chunk) [5. Derivative Financial Instruments](index=17&type=section&id=5.%20Derivative%20Financial%20Instruments) Explains the company's use of derivatives to manage financial risks, primarily interest rate risk - The Company uses interest rate swaps to manage interest rate risk on existing and future liabilities, not for speculative purposes, converting variable rates (Term SOFR or Daily SOFR) to effectively fixed rates[68](index=68&type=chunk)[69](index=69&type=chunk) | Derivative Type (in thousands) | June 30, 2025 Fair Value | December 31, 2024 Fair Value | | :----------------------------- | :----------------------- | :--------------------------- | | Interest rate swaps-gross asset | $19,703 | $36,466 |\n| Interest rate swaps-gross liability | $(1,250) | $0 | - Approximately **$14.3 million** is estimated to be reclassified from accumulated other comprehensive income as a decrease to interest expense over the next **12 months** due to cash flow hedges[72](index=72&type=chunk) [6. Equity](index=19&type=section&id=6.%20Equity) Details the company's equity structure, stock offerings, and compensation plans - As of June 30, 2025, the Company had no preferred stock issued or outstanding, and **186,691,274 shares** of common stock issued and outstanding[82](index=82&type=chunk)[83](index=83&type=chunk) | ATM Common Stock Offering Program | Maximum Aggregate Offering Price (in thousands) | Aggregate Available as of June 30, 2025 (in thousands) | | :-------------------------------- | :---------------------------------------------- | :----------------------------------------------------- | | 2025 $750 million ATM | $750,000 | $749,554 | | Forward Sale Agreements Activity (Six months ended June 30, 2025) | Shares | Gross Sales (in thousands) | Weighted Average Gross Sales Price Per Share | | :---------------------------------------------------------------- | :----- | :------------------------- | :------------------------------------------- | | New forward sale agreements | 12,058 | $446 | $37.00 - $37.02 |\n| Forward Sale Agreements Outstanding at June 30, 2025 | 12,058 | $446 | N/A | - Unrecognized compensation expense for restricted shares of common stock was approximately **$3.0 million** at June 30, 2025, to be recognized over approximately **2.5 years**[89](index=89&type=chunk) [7. Noncontrolling Interest](index=21&type=section&id=7.%20Noncontrolling%20Interest) Describes the ownership interests held by parties other than the parent company in consolidated entities | Noncontrolling Interest in Operating Partnership (Six months ended June 30, 2025) | LTIP Units | Other Common Units | Total Noncontrolling Common Units | Noncontrolling Interest (%) | | :-------------------------------------------------------------------------------- | :--------- | :----------------- | :-------------------------------- | :-------------------------- | | Balance at December 31, 2024 | 2,307,662 | 1,464,718 | 3,772,380 | 2.0% |\n| Granted/Issued | 280,334 | — | 280,334 | N/A |\n| Redemptions from Other Common Units to common stock | — | (126,554) | (126,554) | N/A |\n| Balance at June 30, 2025 | 2,505,793 | 1,420,367 | 3,926,160 | 2.1% | - The Company held interests of **96.8%** in a Reno, Nevada joint venture, **91.4%** in a Concord, North Carolina joint venture, and **95.0%** in a Shepherdsville, Kentucky joint venture as of June 30, 2025[99](index=99&type=chunk) [8. Equity Incentive Plan](index=22&type=section&id=8.%20Equity%20Incentive%20Plan) Outlines the company's equity-based compensation programs for employees and directors - On January 7, 2025, performance units were granted under the 2011 Plan with a measuring period from January 1, 2025, to December 31, 2027[100](index=100&type=chunk) - The fair value of performance units granted was determined using a lattice-binomial option-pricing model based on a Monte Carlo simulation, utilizing Level 3 inputs[101](index=101&type=chunk) | Non-Cash Compensation Expense (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Restricted shares of common stock | $412 | $457 | $806 | $932 |\n| LTIP units | $1,109 | $923 | $2,217 | $1,822 |\n| Performance units | $1,537 | $1,399 | $3,019 | $2,756 |\n| Director compensation | $190 | $174 | $388 | $351 |\n| Total non-cash compensation expense | $3,248 | $2,953 | $6,430 | $5,861 | [9. Leases](index=23&type=section&id=9.%20Leases) Presents information on the company's lease agreements, including rental income and operating lease costs | Rental Income (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Fixed lease payments | $157,620 | $144,278 | $314,402 | $286,389 |\n| Variable lease payments | $44,193 | $38,218 | $87,952 | $80,407 |\n| Total rental income | $207,438 | $186,467 | $412,800 | $373,869 | - The Company entered into a new lease agreement for its headquarters in Boston, MA, commencing July 1, 2026, with a total base rent of approximately **$23.0 million** over an estimated **10.8-year** term[112](index=112&type=chunk) | Operating Lease Cost (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :---------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total operating lease cost | $1,129 | $1,047 | $2,256 | $2,093 | [10. Earnings Per Share](index=25&type=section&id=10.%20Earnings%20Per%20Share) Details the calculation of basic and diluted earnings per share for the periods | EPS Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income per share — basic and diluted | $0.27 | $0.33 | $0.76 | $0.53 | - Unvested restricted shares of common stock were considered participating securities for EPS computation, with **114,015 shares** (weighted average) for the three months ended June 30, 2025[118](index=118&type=chunk) [11. Commitments and Contingencies](index=25&type=section&id=11.%20Commitments%20and%20Contingencies) Discloses potential future obligations and uncertain events that may affect the company - The Company is subject to various legal proceedings and claims in the ordinary course of business, which management believes will not have a material adverse effect on its financial position, results of operations, or cash flows[121](index=121&type=chunk) - As of June 30, 2025, the Company had approximately **$3.2 million** in letters of credit related to construction projects and other agreements[122](index=122&type=chunk) [12. Subsequent Events](index=25&type=section&id=12.%20Subsequent%20Events) Reports significant events occurring after the balance sheet date but before financial statement issuance - On July 3, 2025, the Company sold **1,008,200 shares** on a forward basis under the ATM common stock offering program for approximately **$37.0 million** gross sale price, with a scheduled maturity date of July 2, 2026[123](index=123&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance and condition, discussing key factors influencing results, detailed comparisons of operating results for the three and six months ended June 30, 2025 and 2024, non-GAAP financial measures (FFO and NOI), cash flows, and an in-depth analysis of liquidity and capital resources [Forward-Looking Statements](index=26&type=section&id=Forward-Looking%20Statements) Highlights statements about future expectations and potential risks that may cause actual results to differ - The report contains forward-looking statements identifiable by words like "anticipates," "believes," "expects," and "will," which reflect current views and assumptions[126](index=126&type=chunk) - Actual results may differ materially due to risks such as global recessions, ability to raise equity capital, competitive environment, real estate value fluctuations, decreased rental rates, tenant defaults, acquisition risks, and geopolitical conflicts[126](index=126&type=chunk) [Certain Definitions](index=27&type=section&id=Certain%20Definitions) Provides explanations for key terms and metrics used in the management discussion and analysis - "Cash Rent Change" measures the percentage change in base rent between a new/renewal lease and the previous comparable lease[128](index=128&type=chunk) - "Operating Portfolio" includes all stabilized buildings, excluding non-core flex/office, Value Add, and held-for-sale properties[131](index=131&type=chunk) - "Stabilization" for properties under development or redevelopment is defined as achieving **90% occupancy** or **12 months** after completion, or specific criteria for acquired properties[134](index=134&type=chunk) [Overview](index=28&type=section&id=Overview) Presents a high-level summary of the company's business, strategy, and REIT qualification - STAG Industrial, Inc is a REIT specializing in the acquisition, ownership, development, and operation of industrial properties across the United States[139](index=139&type=chunk) - The company's platform focuses on identifying value-driven acquisitions, achieving growth through industrial operations, and maintaining appropriate capitalization, while qualifying as a REIT under IRS sections 856-860[139](index=139&type=chunk) [Factors That May Influence Future Results of Operations](index=28&type=section&id=Factors%20That%20May%20Influence%20Future%20Results%20of%20Operations) Discusses internal and external factors expected to impact the company's future financial performance - Future results depend on external growth (acquisition activity) and internal growth (occupancy and rental rates)[140](index=140&type=chunk) - Macroeconomic trends, including interest rates, inflation, trade policies, and geopolitical tensions, are key drivers of financial market volatility and raise concerns about a slowing global economy[141](index=141&type=chunk) - Long-term demand for industrial space is supported by e-commerce growth, onshoring/nearshoring trends, and the need for greater supply chain resilience[143](index=143&type=chunk) - The company's diversified portfolio, minimal floating rate debt exposure (due to hedging), strong banking relationships, and access to capital are expected to position it well in an uncertain economic environment[144](index=144&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Analyzes the company's financial performance, comparing revenues, expenses, and net income across periods [Comparison of the three months ended June 30, 2025 to the three months ended June 30, 2024](index=33&type=section&id=Comparison%20of%20the%20three%20months%20ended%20June%2030%2C%202025%20to%20the%20three%20months%20ended%20June%2030%2C%202024) Compares the company's financial results for the three-month periods ended June 30, 2025 and 2024 | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Net income | $51,063 | $61,074 | $(10,011) | (16.4)% |\n| Same Store Total Operating Revenue | $185,288 | $178,705 | $6,583 | 3.7% |\n| Same Store Net Operating Income (NOI) | $149,767 | $144,191 | $5,576 | 3.9% |\n| Total Other Income (Expense) | $(27,923) | $1,445 | $(29,368) | (2,032.4)% | - The decrease in net income was primarily attributable to a **$17.4 million** decrease in gain on sales of rental property and a **$6.2 million** increase in interest expense[188](index=188&type=chunk) - Same store rental income increased by **$6.6 million (3.7%)**, driven by **$8.4 million** from new leases and renewals, partially offset by **$2.0 million** reduction from tenant vacancies[174](index=174&type=chunk)[175](index=175&type=chunk) [Comparison of the six months ended June 30, 2025 to the six months ended June 30, 2024](index=36&type=section&id=Comparison%20of%20the%20six%20months%20ended%20June%2030%2C%202025%20to%20the%20six%20months%20ended%20June%2030%2C%202024) Compares the company's financial results for the six-month periods ended June 30, 2025 and 2024 | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Net income | $144,425 | $98,527 | $45,898 | 46.6% |\n| Same Store Total Operating Revenue | $372,012 | $359,233 | $12,779 | 3.6% |\n| Same Store Net Operating Income (NOI) | $297,094 | $287,075 | $10,019 | 3.5% |\n| Total Other Income (Expense) | $(8,679) | $(24,632) | $15,953 | (64.8)% | - The increase in net income was primarily driven by a **$32.5 million** increase in gain on sales of rental property[208](index=208&type=chunk) - Same store rental income increased by **$12.7 million (3.5%)**, with **$16.0 million** from new leases and renewals, partially offset by **$4.1 million** from tenant vacancies[194](index=194&type=chunk)[195](index=195&type=chunk) [Non-GAAP Financial Measures](index=39&type=section&id=Non-GAAP%20Financial%20Measures) Presents and reconciles non-GAAP financial metrics like FFO and NOI to GAAP measures [Funds From Operations](index=40&type=section&id=Funds%20From%20Operations) Explains the calculation and significance of Funds From Operations (FFO) as a REIT performance metric - FFO is calculated in accordance with Nareit standards, adjusting GAAP net income by excluding gains/losses from sales of depreciable operating buildings, impairment write-downs, and real estate-related depreciation and amortization[211](index=211&type=chunk) | FFO (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income | $51,063 | $61,074 | $144,425 | $98,527 |\n| FFO | $120,645 | $118,168 | $237,908 | $226,989 |\n| FFO attributable to common stockholders and unit holders | $120,506 | $118,029 | $237,615 | $226,704 | - FFO is a widely recognized measure for REIT performance comparison but has limitations as it excludes depreciation, amortization, changes in property value, and capital expenditures[213](index=213&type=chunk) [Net Operating Income](index=40&type=section&id=Net%20Operating%20Income) Defines and presents Net Operating Income (NOI) as a measure of property-level profitability - NOI is defined as rental income (including common area maintenance, real estate taxes, and insurance billings) less property expenses, real estate tax expense, and insurance expense[216](index=216&type=chunk) | NOI (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income | $51,063 | $61,074 | $144,425 | $98,527 |\n| Net operating income | $167,190 | $152,299 | $329,086 | $300,771 | - NOI is a supplemental measure for understanding core building operations but should not be viewed as an alternative to GAAP financial performance, as it excludes expenses that could materially impact results[216](index=216&type=chunk) [Cash Flows](index=41&type=section&id=Cash%20Flows) Analyzes the company's cash generation and usage from operating, investing, and financing activities [Comparison of the six months ended June 30, 2025 to the six months ended June 30, 2024](index=41&type=section&id=Comparison%20of%20the%20six%20months%20ended%20June%2030%2C%202025%20to%20the%20six%20months%20ended%20June%2030%2C%202024) Compares the company's financial results for the six-month periods ended June 30, 2025 and 2024 | Cash Flow Activity (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | | Net cash provided by operating activities | $215,408 | $227,397 |\n| Net cash used in investing activities | $(89,629) | $(247,611) |\n| Net cash provided by (used in) financing activities | $(127,327) | $32,866 | - The decrease in net cash used in investing activities was primarily due to lower rental property acquisitions (**$66.8 million** in 2025 vs **$281.1 million** in 2024)[221](index=221&type=chunk) - The shift in financing activities was mainly driven by decreased net borrowings under unsecured credit facilities and notes (**$83.0 million** and **$75.0 million**, respectively) and a **$4.4 million** increase in dividends paid[222](index=222&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) Assesses the company's ability to meet short-term and long-term financial obligations and fund operations [Indebtedness Outstanding](index=43&type=section&id=Indebtedness%20Outstanding) Details the company's current debt obligations, including types, amounts, interest rates, and maturities | Indebtedness (in thousands) | June 30, 2025 | Interest Rate | Maturity Date | | :-------------------------- | :------------ | :------------ | :------------ | | Unsecured credit facility | $51,000 | Term SOFR + 0.875% | Sep 7, 2029 |\n| Unsecured term loans | $1,025,000 | 1.80% - 4.83% | Feb 5, 2026 - Mar 23, 2029 |\n| Unsecured notes | $1,975,000 | 2.80% - 6.30% | Jul 1, 2026 - Jun 25, 2035 |\n| Mortgage note | $4,212 | 3.71% | Oct 1, 2039 |\n| Total principal outstanding | $3,055,212 | N/A | N/A |\n| Weighted average interest rate | 4.24% | N/A | N/A | - The aggregate undrawn nominal commitment on the unsecured credit facility was approximately **$945.8 million** as of June 30, 2025[236](index=236&type=chunk) - The Company was in compliance with all applicable financial covenants for its debt arrangements as of June 30, 2025[239](index=239&type=chunk) [Equity](index=44&type=section&id=Equity) Provides an overview of the company's equity structure, stock issuance programs, and outstanding shares - The Company is authorized to issue up to **20,000,000 shares** of preferred stock and **300,000,000 shares** of common stock; no preferred stock was outstanding as of June 30, 2025[244](index=244&type=chunk)[245](index=245&type=chunk) | ATM Common Stock Offering Program | Maximum Aggregate Offering Price (in thousands) | Aggregate Available as of June 30, 2025 (in thousands) | | :-------------------------------- | :---------------------------------------------- | :----------------------------------------------------- | | 2025 $750 million ATM | $750,000 | $749,554 | - As of June 30, 2025, **12,058 shares** were outstanding under forward sale agreements, representing **$446 thousand** in gross sales[249](index=249&type=chunk) [Noncontrolling Interest](index=45&type=section&id=Noncontrolling%20Interest) Describes the noncontrolling ownership stakes in the company's consolidated subsidiaries and joint ventures - As of June 30, 2025, the Company owned approximately **97.9%** of the common units in its Operating Partnership[251](index=251&type=chunk) - The Company holds interests in joint ventures, including **96.8%** in Reno, Nevada, **91.4%** in Concord, North Carolina, and **95.0%** in Shepherdsville, Kentucky[252](index=252&type=chunk) [Interest Rate Risk](index=45&type=section&id=Interest%20Rate%20Risk) Discusses the company's exposure to interest rate fluctuations and its hedging strategies - The Company uses interest rate swaps to fix the rate of its variable rate debt, with all outstanding variable rate debt (except the unsecured credit facility) fixed through initial maturity as of June 30, 2025[253](index=253&type=chunk)[257](index=257&type=chunk) - As of June 30, 2025, the company had approximately **$1,076.0 million** of variable rate debt, with **$51.0 million** on its unsecured credit facility unhedged[257](index=257&type=chunk) - An increase of **100 basis points** in interest rates would increase interest expense by approximately **$0.3 million** for the six months ended June 30, 2025, assuming the unsecured credit facility balance[260](index=260&type=chunk) [Off-balance Sheet Arrangements](index=46&type=section&id=Off-balance%20Sheet%20Arrangements) Discloses significant contractual obligations and arrangements not recognized on the balance sheet - As of June 30, 2025, the Company had approximately **$3.2 million** in letters of credit related to development projects and other agreements[258](index=258&type=chunk) - No other material off-balance sheet arrangements were reported as of June 30, 2025[258](index=258&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Discusses the company's exposure to market risk, primarily interest rate risk, and its management strategy - The primary market risk the Company is exposed to is interest rate risk, which is managed through derivative financial instruments, mainly interest rate swaps[259](index=259&type=chunk) - As of June 30, 2025, **$1,076.0 million** of variable rate debt was outstanding, with **$51.0 million** on the unsecured credit facility unhedged[260](index=260&type=chunk) - A **100 basis point** increase in interest rates would increase interest expense by approximately **$0.3 million** for the six months ended June 30, 2025, on the unhedged portion of debt[260](index=260&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Reports on the effectiveness of disclosure controls and internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[261](index=261&type=chunk)[262](index=262&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended June 30, 2025[263](index=263&type=chunk) [PART II. Other Information](index=47&type=section&id=PART%20II.%20Other%20Information) Includes legal proceedings, risk factors, equity sales, and other corporate disclosures [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) Details routine legal proceedings and claims, with no expected material adverse effect - The Company is not currently a party to any legal proceedings that are expected to have a material adverse effect on its business, financial condition, or results of operations[265](index=265&type=chunk) [Item 1A. Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) Updates risk factors, including new risks from trade policies and forum selection provisions - New risk factors include potential declines in economic activity due to changes in trade policies, tariffs, and related government actions, which could increase costs, decrease margins, and adversely affect tenants' businesses and the company's operations[267](index=267&type=chunk) - The company's bylaws designate Maryland state courts or the U.S District Court in Maryland as the sole forum for certain actions, and federal district courts for Securities Act claims, potentially limiting stockholders' choice of judicial forum[268](index=268&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Reports on unregistered sales of equity securities, including unit exchanges and stock redemptions - During the quarter ended June 30, 2025, the Operating Partnership issued **28,843 common units** upon exchange of outstanding LTIP units[271](index=271&type=chunk) - The Company issued **73,194 shares** of common stock upon redemption of **73,194 common units** in the Operating Partnership[272](index=272&type=chunk) [Item 3. Defaults Upon Senior Securities](index=48&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) States that no defaults upon senior securities occurred during the reported period - No defaults upon senior securities occurred during the quarter ended June 30, 2025[274](index=274&type=chunk) [Item 4. Mine Safety Disclosures](index=48&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Indicates that this item is not applicable to the company's operations - This item is not applicable to the Company[275](index=275&type=chunk) [Item 5. Other Information](index=48&type=section&id=Item%205.%20Other%20Information) Covers various corporate information, including trading arrangements, bylaws, and personnel changes [Director and Officer Trading Arrangements](index=48&type=section&id=Director%20and%20Officer%20Trading%20Arrangements) Reports on trading plans adopted or terminated by the company's directors and officers - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by directors or officers during the three months ended June 30, 2025[277](index=277&type=chunk) [Amended and Restated Bylaws](index=48&type=section&id=Amended%20and%20Restated%20Bylaws) Details recent changes to the company's bylaws, including governance and forum selection provisions - The Fourth Amended and Restated Bylaws, effective July 28, 2025, incorporate SEC's "universal proxy rules" and enhance procedural/disclosure requirements for stockholder nominations and proposals[278](index=278&type=chunk)[284](index=284&type=chunk) - The bylaws designate Maryland state courts or the U.S District Court in Maryland as the exclusive forum for certain internal corporate claims and federal district courts for Securities Act claims[278](index=278&type=chunk)[284](index=284&type=chunk) [2026 Annual Meeting of Stockholders; Date for Submission of Stockholder Proposals](index=50&type=section&id=2026%20Annual%20Meeting%20of%20Stockholders%3B%20Date%20for%20Submission%20of%20Stockholder%20Proposals) Provides deadlines and procedures for stockholder proposals for the upcoming annual meeting - The deadline for stockholder proposals for the 2026 annual meeting (excluding Rule 14a-8 proposals) is between December 29, 2025, and January 28, 2026, due to changes in the Amended and Restated Bylaws[281](index=281&type=chunk)[282](index=282&type=chunk) [Promotion of Steven T. Kimball to Chief Operating Officer](index=50&type=section&id=Promotion%20of%20Steven%20T.%20Kimball%20to%20Chief%20Operating%20Officer) Announces the promotion of Steven T Kimball to Chief Operating Officer and details his compensation - Steven T Kimball was promoted to Executive Vice President and Chief Operating Officer, effective August 1, 2025[283](index=283&type=chunk) - Mr Kimball's new role includes a base salary of **$500,000** annually, with an initial term through December 31, 2026[286](index=286&type=chunk) - Mr Kimball previously served as Executive Vice President—Real Estate Operations and held leadership positions at PGIM Real Estate and Prologis, Inc[283](index=283&type=chunk)[285](index=285&type=chunk) [Item 6. Exhibits](index=52&type=section&id=Item%206.%20Exhibits) Lists all supplementary documents filed with the quarterly report - The exhibits include the Fourth Amended and Restated Bylaws, the Note Purchase Agreement for Series O, P, and Q Unsecured Notes, and certifications from the Chief Executive Officer and Chief Financial Officer[288](index=288&type=chunk) [SIGNATURES](index=53&type=section&id=SIGNATURES) Confirms the official submission of the report by authorized company officers - The report is signed by Matts S Pinard, Chief Financial Officer, Executive Vice President and Treasurer, and Jaclyn M Paul, Chief Accounting Officer, on July 29, 2025[293](index=293&type=chunk)

Executive Summary & Highlights This section provides a high-level overview of the company's key financial and operational achievements for the period [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) STAG Industrial reported strong operational performance in Q2 2025, with increases in Core FFO per diluted share, Cash NOI, and Same Store Cash NOI. The company also completed strategic acquisitions and dispositions, maintained high occupancy, and achieved significant rent changes on new and renewal leases. Moody's upgraded the corporate credit rating | Metric | Q2 2025 | Q2 2024 | Change | % Change | | :----------------------------------- | :------ | :------ | :----- | :------- | | Net income per basic and diluted common share | $0.27 | $0.33 | ($0.06) | (18.2)% | | Net income attributable to common stockholders | $50.0 million | $59.7 million | ($9.7 million) | (16.2)% | | Core FFO per diluted share | $0.63 | $0.61 | $0.02 | 3.3% | | Cash NOI | $161.7 million | $148.4 million | $13.3 million | 8.9% | | Same Store Cash NOI | $145.3 million | $141.0 million | $4.3 million | 3.0% | | Cash Available for Distribution | $98.8 million | $95.1 million | $3.7 million | 3.9% | - Acquired one building (**183,200 square feet**) for **$18.4 million** with a Cash Capitalization Rate of **7.1%**[4](index=4&type=chunk) - Sold one building (**151,200 square feet**) for **$9.1 million**[4](index=4&type=chunk) - Achieved an Occupancy Rate of **96.3%** on the total portfolio and **97.0%** on the Operating Portfolio as of June 30, 2025[4](index=4&type=chunk) - Commenced Operating Portfolio leases of **4.2 million square feet**, resulting in a Cash Rent Change of **24.6%** and Straight-Line Rent Change of **41.1%**[4](index=4&type=chunk) - Experienced **75.3%** Retention for **3.5 million square feet** of leases expiring in the quarter[4](index=4&type=chunk) - Moody's Investor Services raised the Company's corporate credit rating to **Baa2** with a stable outlook from **Baa3** with a positive outlook on May 8, 2025[4](index=4&type=chunk) - As of July 28, 2025, **90.8%** of expected 2025 new and renewal leasing (**13.3 million square feet**) has been addressed, achieving a Cash Rent Change of **24.5%**[4](index=4&type=chunk) Financial Performance This section provides a comparative overview of key financial metrics for the three and six months ended June 30, 2025, versus 2024, highlighting changes in net income, NOI, FFO, and CAD [Key Financial Measures](index=3&type=section&id=Key%20Financial%20Measures) This section provides a comparative overview of key financial metrics for the three and six months ended June 30, 2025, versus 2024, highlighting changes in net income, NOI, FFO, and CAD | Metrics | Three months ended June 30, 2025 ($ millions) | Three months ended June 30, 2024 ($ millions) | % Change (QoQ) | Six months ended June 30, 2025 ($ millions) | Six months ended June 30, 2024 ($ millions) | % Change (YoY) | | :-------------------------------- | :------------------------------- | :------------------------------- | :--------------- | :------------------------------- | :------------------------------- | :--------------- | | Net income attributable to common stockholders | $49.963 | $59.737 | (16.4)% | $141.316 | $96.317 | 46.7 % | | Net income per common share — basic | $0.27 | $0.33 | (18.2)% | $0.76 | $0.53 | 43.4 % | | Net income per common share — diluted | $0.27 | $0.33 | (18.2)% | $0.76 | $0.53 | 43.4 % | | Cash NOI | $161.688 | $148.432 | 8.9 % | $318.885 | $293.904 | 8.5 % | | Same Store Cash NOI | $145.266 | $140.984 | 3.0 % | $289.726 | $280.758 | 3.2 % | | Adjusted EBITDAre | $152.017 | $138.726 | 9.6 % | $298.430 | $273.393 | 9.2 % | | Core FFO | $120.506 | $113.147 | 6.5 % | $235.760 | $222.186 | 6.1 % | | Core FFO per share / unit — diluted | $0.63 | $0.61 | 3.3 % | $1.24 | $1.20 | 3.3 % | | Cash Available for Distribution | $98.829 | $95.119 | 3.9 % | $205.315 | $193.252 | 6.2 % | - The Same Store pool accounted for **91.6%** of the total portfolio square footage as of June 30, 2025[9](index=9&type=chunk) [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet shows a slight decrease in total assets and total equity from December 31, 2024, to June 30, 2025, while total liabilities remained relatively stable. Key changes include a significant reduction in unsecured credit facility debt and an increase in unsecured notes | Item | June 30, 2025 ($ millions) | December 31, 2024 ($ millions) | Change ($ millions) | % Change | | :----------------------------------- | :--------------------- | :--------------------- | :------------- | :------- | | Total rental property, net | $6,500.090 | $6,495.779 | $4.311 | 0.07% | | Cash and cash equivalents | $15.379 | $36.284 | ($20.905) | (57.6%) | | Total assets | $6,825.148 | $6,833.335 | ($8.187) | (0.12%) | | Unsecured credit facility | $51.000 | $409.000 | ($358.000) | (87.5%) | | Unsecured notes, net | $1,966.291 | $1,594.092 | $372.199 | 23.3% | | Total liabilities | $3,304.489 | $3,304.227 | $0.262 | 0.01% | | Total equity | $3,520.659 | $3,529.108 | ($8.449) | (0.24%) | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2025, total revenue increased year-over-year, primarily driven by higher rental income. However, net income decreased due to a significant reduction in gain on sales of rental property and increased interest expense, despite a slight decrease in total expenses | Item | Three months ended June 30, 2025 ($ millions) | Three months ended June 30, 2024 ($ millions) | % Change (QoQ) | Six months ended June 30, 2025 ($ millions) | Six months ended June 30, 2024 ($ millions) | % Change (YoY) | | :----------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------- | :--------------------------------------- | :--------------------------------------- | :--------------- | | Rental income | $207.438 | $186.467 | 11.2% | $412.800 | $373.869 | 10.4% | | Total revenue | $207.593 | $189.777 | 9.4% | $413.167 | $377.320 | 9.5% | | Total expenses | $128.607 | $130.148 | (1.2)% | $260.063 | $254.161 | 2.3% | | Interest expense | ($33.618) | ($27.372) | 22.8% | ($66.147) | ($52.793) | 25.3% | | Gain on the sales of rental property, net | $5.692 | $23.086 | (75.4)% | $55.605 | $23.086 | 140.8% | | Net income | $51.063 | $61.074 | (16.4)% | $144.425 | $98.527 | 46.6% | | Net income attributable to common stockholders | $49.963 | $59.737 | (16.4)% | $141.316 | $96.317 | 46.7% | | Net income per share — diluted | $0.27 | $0.33 | (18.2)% | $0.76 | $0.53 | 43.4% | [Reconciliations of GAAP to Non-GAAP Measures](index=7&type=section&id=Reconciliations%20of%20GAAP%20to%20Non-GAAP%20Measures) This section provides detailed reconciliations from GAAP net income to various non-GAAP financial measures, including Net Operating Income (NOI), Cash NOI, EBITDAre, Adjusted EBITDAre, Funds From Operations (FFO), Core FFO, and Cash Available for Distribution (CAD), for both quarterly and year-to-date periods. These reconciliations adjust for non-cash items and other specific expenses/gains to provide a clearer view of operational performance [Net Operating Income (NOI) Reconciliation](index=7&type=section&id=Net%20Operating%20Income%20(NOI)%20Reconciliation) This section reconciles net income to Net Operating Income (NOI) and Cash NOI for the specified periods | Metric | Three months ended June 30, 2025 ($ millions) | Three months ended June 30, 2024 ($ millions) | Six months ended June 30, 2025 ($ millions) | Six months ended June 30, 2024 ($ millions) | | :-------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net income | $51.063 | $61.074 | $144.425 | $98.527 | | Net operating income | $167.190 | $152.299 | $329.086 | $300.771 | | Cash net operating income | $161.688 | $148.432 | $318.885 | $293.904 | | Same Store NOI | $149.767 | $144.191 | $297.094 | $287.075 | | Same Store Cash NOI | $145.266 | $140.984 | $289.726 | $280.758 | [EBITDAre and Adjusted EBITDAre Reconciliation](index=7&type=section&id=EBITDAre%20and%20Adjusted%20EBITDAre%20Reconciliation) This section reconciles net income to EBITDAre and Adjusted EBITDAre for the specified periods | Metric | Three months ended June 30, 2025 ($ millions) | Three months ended June 30, 2024 ($ millions) | Six months ended June 30, 2025 ($ millions) | Six months ended June 30, 2024 ($ millions) | | :------------------ | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net income | $51.063 | $61.074 | $144.425 | $98.527 | | EBITDAre | $154.347 | $145.593 | $304.220 | $279.883 | | Adjusted EBITDAre | $152.017 | $138.726 | $298.430 | $273.393 | [Core Funds From Operations (FFO) Reconciliation](index=8&type=section&id=Core%20Funds%20From%20Operations%20(FFO)%20Reconciliation) This section reconciles net income to Funds From Operations (FFO) and Core FFO for the specified periods | Metric | Three months ended June 30, 2025 ($ millions) | Three months ended June 30, 2024 ($ millions) | Six months ended June 30, 2025 ($ millions) | Six months ended June 30, 2024 ($ millions) | | :------------------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net income | $51.063 | $61.074 | $144.425 | $98.527 | | Funds from operations | $120.645 | $118.168 | $237.908 | $226.989 | | Core funds from operations | $120.506 | $113.147 | $235.760 | $222.186 | | Core funds from operations per share / unit - diluted | $0.63 | $0.61 | $1.24 | $1.20 | [Cash Available for Distribution (CAD) Reconciliation](index=8&type=section&id=Cash%20Available%20for%20Distribution%20(CAD)%20Reconciliation) This section reconciles Core FFO to Cash Available for Distribution (CAD) for the specified periods | Metric | Three months ended June 30, 2025 ($ millions) | Three months ended June 30, 2024 ($ millions) | Six months ended June 30, 2025 ($ millions) | Six months ended June 30, 2024 ($ millions) | | :-------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Core funds from operations | $120.506 | $113.147 | $235.760 | $222.186 | | Cash available for distribution | $98.829 | $95.119 | $205.315 | $193.252 | Operational Activities This section details STAG Industrial's acquisition, disposition, and leasing activities, alongside capital market initiatives [Acquisition, Development and Disposition Activity](index=3&type=section&id=Acquisition%2C%20Development%20and%20Disposition%20Activity) STAG Industrial engaged in both acquisition and disposition activities during Q2 2025 and year-to-date 2025, acquiring one building and one vacant land parcel in Q2, while disposing of one building. The company also maintains a significant acquisition pipeline [Acquisition Activity](index=3&type=section&id=Acquisition%20Activity) Details of property acquisitions, including purchase prices, square footage, and capitalization rates - In Q2 2025, acquired one building (**183,200 square feet**) for **$18.4 million** in Chicago, IL, with **100.0%** occupancy upon acquisition and a Cash Capitalization Rate of **7.1%**[10](index=10&type=chunk)[11](index=11&type=chunk) | Period | Square Feet | Buildings | Purchase Price ($ millions) | W.A. Lease Term (Years) | Cash Capitalization Rate | | :------- | :---------- | :-------- | :--------------------- | :---------------------- | :----------------------- | | Q1 2025 | 393,564 | 3 | $43.285 | 3.2 | 6.8% | | Q2 2025 | 183,200 | 1 | $18.399 | 5.0 | 7.1% | | Total YTD | 576,764 | 4 | $61.684 | 3.8 | 6.9% | - Acquisition Pipeline: **28.4 million square feet** across **168** buildings, with a total purchase price of **$3.4 billion**[13](index=13&type=chunk) - Acquired one vacant land parcel for **$5.5 million** as part of a joint venture in Q2 2025[13](index=13&type=chunk) [Disposition Activity](index=3&type=section&id=Disposition%20Activity) Overview of property dispositions, including sale prices and square footage | Period | Square Feet | Buildings | Sale Price ($ millions) | | :------- | :---------- | :-------- | :----------------- | | Q1 2025 | 337,391 | 1 | $67.000 | | Q2 2025 | 151,200 | 1 | $9.100 | | Total YTD | 488,591 | 2 | $76.100 | [Leasing Activity](index=4&type=section&id=Leasing%20Activity) The company reported robust leasing activity for both Q2 and year-to-date 2025, with significant rent increases on new and renewal leases and a solid retention rate within the operating portfolio [Q2 2025 Operating Portfolio Leasing Activity](index=4&type=section&id=Q2%202025%20Operating%20Portfolio%20Leasing%20Activity) Summary of Q2 2025 operating portfolio leasing performance, including rent changes and retention rates | Lease Type | Square Feet | Lease Count | W.A. Lease Term (Years) | Cash Rent Change | SL Rent Change | Retention | | :----------- | :---------- | :---------- | :---------------------- | :--------------- | :------------- | :-------- | | New Leases | 1,604,612 | 11 | 5.4 | 35.2% | 49.0% | - | | Renewal Leases | 2,611,673 | 21 | 5.8 | 18.7% | 36.7% | 75.3% | | Total / weighted average | 4,216,285 | 32 | 5.7 | 24.6% | 41.1% | - | [Year-to-Date Operating Portfolio Leasing Activity](index=4&type=section&id=Year-to-Date%20Operating%20Portfolio%20Leasing%20Activity) Summary of year-to-date operating portfolio leasing performance, including rent changes and retention rates | Lease Type | Square Feet | Lease Count | W.A. Lease Term (Years) | Cash Rent Change | SL Rent Change | Retention | | :----------- | :---------- | :---------- | :---------------------- | :--------------- | :------------- | :-------- | | New Leases | 1,883,667 | 15 | 5.2 | 35.0% | 48.7% | - | | Renewal Leases | 7,295,246 | 53 | 5.0 | 23.9% | 40.0% | 81.4% | | Total / weighted average | 9,178,913 | 68 | 5.0 | 26.1% | 41.7% | - | - As of July 28, 2025, **90.8%** of expected 2025 new and renewal leasing (**13.3 million square feet**) has been addressed, achieving a Cash Rent Change of **24.5%**[19](index=19&type=chunk) [Capital Markets Activity](index=4&type=section&id=Capital%20Markets%20Activity) STAG Industrial successfully raised $550 million in fixed-rate senior unsecured notes and received a credit rating upgrade from Moody's, enhancing its financial flexibility and market position - On May 8, 2025, Moody's Investor Services raised the Company's corporate credit rating to **Baa2** with a stable outlook from **Baa3** with a positive outlook[20](index=20&type=chunk) - On June 25, 2025, the Company funded a note purchase agreement issuing **$550 million** of fixed rate senior unsecured notes in a private placement offering with a weighted average fixed interest rate of **5.65%** and a weighted average tenor of **6.5 years**[21](index=21&type=chunk) - As of June 30, 2025, Net Debt to Annualized Run Rate Adjusted EBITDAre was **5.1x** and Liquidity was **$961.2 million**[22](index=22&type=chunk) Additional Information This section provides supplementary details including conference call information, non-GAAP measure definitions, and forward-looking statements [Conference Call & Supplemental Information](index=4&type=section&id=Conference%20Call%20%26%20Supplemental%20Information) The company announced details for its Q2 2025 earnings conference call and directed stakeholders to its website for supplemental information - The Company will host a conference call on July 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[23](index=23&type=chunk) - Interested parties can access the call live over the phone or via a simultaneous webcast on the Investor Relations section of the Company's website[23](index=23&type=chunk)[24](index=24&type=chunk) - A supplemental information package with additional disclosure and financial information is available on the Company's website under the 'Quarterly Results' tab[24](index=24&type=chunk) [Non-GAAP Financial Measures and Other Definitions](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Other%20Definitions) This section provides detailed definitions for various non-GAAP financial measures used in the earnings release, such as Cash Available for Distribution, Cash Capitalization Rate, EBITDAre, FFO, NOI, Occupancy Rate, and others, along with explanations of their utility and limitations - Definitions are provided for key terms including Acquisition Capital Expenditures, Cash Available for Distribution, Cash Capitalization Rate, Cash Rent Change, Comparable Lease, EBITDAre, Adjusted EBITDAre, Annualized Adjusted EBITDAre, Run Rate Adjusted EBITDAre, Annualized Run Rate Adjusted EBITDAre, Funds from Operations (FFO), Core FFO, GAAP, Liquidity, Market, Net Debt, Net operating income (NOI), Cash NOI, Run Rate Cash NOI, Occupancy Rate, Operating Portfolio, Pipeline, Renewal Lease, Repositioning, Retention, Same Store, Stabilization, Straight-Line Capitalization Rate, Straight-Line Rent Change (SL Rent Change), Value Add Portfolio, and Weighted Average Lease Term[35](index=35&type=chunk)[39](index=39&type=chunk)[42](index=42&type=chunk)[46](index=46&type=chunk)[51](index=51&type=chunk)[55](index=55&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) - The document emphasizes that non-GAAP measures should not be considered as alternatives to net income (determined in accordance with GAAP) and may not be comparable to similarly titled measures disclosed by other REITs[37](index=37&type=chunk)[45](index=45&type=chunk)[48](index=48&type=chunk)[54](index=54&type=chunk) [Forward-Looking Statements](index=14&type=section&id=Forward-Looking%20Statements) This section serves as a disclaimer, stating that the earnings release contains forward-looking statements subject to known and unknown risks and uncertainties, and that actual results may differ materially from expectations. The company disclaims any obligation to update these statements - This earnings release contains forward-looking statements covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995[66](index=66&type=chunk) - Forward-looking statements are based on certain assumptions and describe future plans, strategies, and expectations, identifiable by words such as 'believe,' 'will,' 'expect,' 'intend,' 'anticipate,' 'estimate,' 'should', 'project' or similar expressions[66](index=66&type=chunk) - Such statements involve known and unknown risks, uncertainties, and other factors beyond STAG's control, which could materially affect actual results, performances, or achievements, as discussed in STAG's most recent Annual Report on Form 10-K[66](index=66&type=chunk) - STAG disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement to reflect any change in expectations or circumstances[66](index=66&type=chunk)

Core Insights - STAG Industrial, Inc. reported strong financial performance for the second quarter of 2025, with a net income of $49.963 million, a decrease of 16.4% compared to $59.737 million in the same quarter of 2024 [3][7] - The company achieved a Cash NOI of $161.688 million, reflecting an increase of 8.9% from $148.432 million year-over-year [3][7] - Core FFO per share increased by 3.3% to $0.63 from $0.61 in the second quarter of 2024 [3][7] Financial Performance - Net income attributable to common stockholders for Q2 2025 was $49.963 million, down from $59.737 million in Q2 2024, marking a 16.4% decline [3][7] - Basic and diluted net income per share decreased to $0.27 from $0.33, an 18.2% drop [3][7] - Total revenue for Q2 2025 was $207.593 million, up from $189.777 million in Q2 2024, representing a growth of 9.6% [19] Operational Highlights - The company acquired one building in Chicago for $18.4 million, achieving a 100% occupancy rate upon acquisition [5][7] - The total portfolio occupancy rate stood at 96.3% as of June 30, 2025, with the operating portfolio at 97.0% [7] - The company commenced leases totaling 4.2 million square feet in Q2 2025, with a Cash Rent Change of 24.6% [9][11] Acquisition and Disposition Activity - In the first half of 2025, STAG Industrial acquired a total of 576,764 square feet across four buildings for $61.684 million [6][8] - The company sold one building in Q2 2025 for $9.1 million, contributing to a total disposition of 488,591 square feet for $76.1 million in the first half of the year [8][9] Capital Markets Activity - Moody's upgraded the company's corporate credit rating to Baa2 with a stable outlook on May 8, 2025 [12][13] - The company issued $550 million in fixed-rate senior unsecured notes with a weighted average interest rate of 5.65% [13][14] Cash Flow and Distribution - Cash Available for Distribution for Q2 2025 was $98.829 million, a 3.9% increase from $95.119 million in Q2 2024 [3][28] - The company reported a Cash NOI of $161.688 million for the quarter, up 8.9% from the previous year [3][7]

Portfolio Overview - STAG Industrial has an enterprise value of $10.1 billion and owns 578 buildings totaling 114.5 million square feet [6] - The portfolio includes properties in 40 states, with 87% exposure to CBRE Tier 1 and Tier 2 markets based on % ABR [8] - The weighted average lease term is 4.3 years, and multi-tenant industrial properties account for 26.9% of the net rentable area [8] Financial Performance and Growth - The company forecasts same-store cash NOI growth between 5.25% and 5.50% for 2024 [9] - Cash rent change is projected to be between 27.5% and 30%, with SL rent change between 35% and 40% [9] - Free cash flow after dividends is approximately $100 million annually, with a CAD payout ratio of 73% [8] Leasing Activity - As of November 11, 2024, 98.4% of expected 2024 new and renewal leasing has been addressed, covering 13.2 million square feet with a cash rent change of 28.5% [30] - 42.2% of expected 2025 new and renewal leasing has been addressed, covering 6.1 million square feet with a cash rent change of 22.4% [30] Market Dynamics - Approximately 31% of STAG's portfolio handles e-commerce activity [15] - Approximately one-third of STAG's portfolio is located within a 60-mile radius of Megasite Projects [19] Balance Sheet and Capitalization - Net debt to annualized run rate adjusted EBITDAre is projected to be between 5.00x and 5.50x [9] - The company maintains a conservative balance sheet with less than 0.1% secured debt [9] Acquisition and Development - The company targets an acquisition volume between $500 million and $700 million [62] - The company has an average annual acquisition volume of approximately $800 million over the last five years [56]

Core Viewpoint - STAG Industrial, Inc. will release its second quarter 2025 operating and financial results on July 29, 2025, and will host a conference call on July 30, 2025, at 10:00 a.m. Eastern Time [1] Group 1: Earnings Release and Conference Call - The second quarter 2025 operating and financial results will be announced after market close on July 29, 2025 [1] - A quarterly earnings conference call is scheduled for July 30, 2025, at 10:00 a.m. Eastern Time [1] Group 2: Accessing the Conference Call - The conference call can be accessed toll-free by dialing (877) 407-4018 for domestic callers and (201) 689-8471 for international callers [2] - A replay of the call will be available shortly after it concludes, accessible by dialing (844) 512-2921 for domestic callers and (412) 317-6671 for international callers, with the passcode 13754611 [2] Group 3: Company Overview - STAG Industrial, Inc. is a real estate investment trust focused on the acquisition, development, ownership, and operation of industrial properties across the United States [3] - As of March 31, 2025, the company's portfolio includes 597 buildings in 41 states, totaling approximately 117.6 million rentable square feet [3]

Core Insights - The article emphasizes the importance of consistent income generation through investments in high-yield equities and REITs, particularly focusing on STAG Industrial as a reliable option for income investors [1]. Group 1: Investment Strategy - The investment strategy revolves around resilient cash flows, capital allocation discipline, and sustainable dividend growth, which are critical for long-term total return [1]. - The author engages in fundamental research and maintains informal conversations with a network of analysts to refine investment ideas, ensuring they are conviction- and yield-driven [1]. Group 2: Personal Investment Approach - The author has a personal ritual of checking the performance of STAG Industrial on the first of every month, indicating a disciplined approach to monitoring investments [1]. - The article reflects a personal investment philosophy that prioritizes high-yield opportunities and emphasizes the importance of regular performance assessments [1].

Core Insights - STAG Industrial, Inc. (NYSE: STAG) is a REIT that specializes in owning and leasing industrial properties, reflecting current trends in the real estate market [1]. Group 1: Company Overview - STAG Industrial focuses on the industrial property sector, which is experiencing significant trends that may impact its performance [1]. Group 2: Industry Context - The investment service provided by Crude Value Insights emphasizes cash flow generation in the oil and natural gas sector, indicating a focus on companies with strong value and growth potential [1].

Group 1 - STAG Industrial, Inc. is trading at a relative discount within the attractive industrial REIT sector, indicating potential investment opportunities [1] - The company is experiencing clean growth driven by aggressive leasing spreads and lease escalators, which are favorable for investors [1] - The investment strategy focuses on identifying undervalued companies with secular growth potential, emphasizing strong balance sheets and management teams [1] Group 2 - The article highlights the importance of combining growth-oriented principles with strict valuation hurdles to enhance the margin of safety for investments [1] - Exclusive features offered include access to high-conviction stock picks, comprehensive research reports, real-time trade alerts, and macro market analysis [1]