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STAG Industrial(STAG) - 2025 Q1 - Earnings Call Transcript
2025-04-30 14:00
Financial Data and Key Metrics Changes - Core FFO per share was $0.61 for the first quarter, an increase of 3.4% compared to the previous year [15] - Cash available for distribution totaled $106.5 million, an increase of 8.5% compared to the prior period [15] - Leverage remains low with net debt to annualized run rate adjusted EBITDA equal to 5.2 times [15] - Same store cash NOI growth was 3.4% for the quarter, driven by leasing spreads of 27.3% and annual escalators of 2.8% [17] Business Line Data and Key Metrics Changes - The company signed 36 leases totaling 5 million square feet during the quarter, generating cash and straight line leasing spreads of 27.3% and 42.1% respectively [16] - Retention for the quarter was 85.3%, with 78.5% of the operating portfolio square feet expected to lease in 2025 already leased [16][19] - The company achieved cash leasing spreads of 25.1% for the leases commencing in 2025 [8][16] Market Data and Key Metrics Changes - The national under construction pipeline decreased more than 16% sequentially since the fourth quarter [11] - The company noted healthy tenant activity in various markets, with strong demand in the Midwest and Sunbelt regions, while some weakness was observed in Atlanta and San Diego [9][28] Company Strategy and Development Direction - The company aims to benefit from geographic diversity and focus on CBRE Tier one markets, viewing tenant supply chain diversification as a net positive [9] - The company has a strong balance sheet and ample liquidity, positioning itself for sustainable growth in 2025 [20] - The company is evaluating a broad mix of assets for acquisition, including long-term and short-term leases, and is open to opportunities in the current market environment [58] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about leasing activity despite macroeconomic uncertainties, noting that tenants are still making decisions albeit at a slower pace [27][36] - The company maintains its 2025 credit loss guidance of 75 basis points, with minimal credit loss experienced in the first quarter [19][60] - Management highlighted ongoing discussions with tenants for early lease renewals, indicating strong demand in the system [29][34] Other Important Information - The company completed acquisitions totaling $43 million in the first quarter, with cash cap rates averaging 6.87% [11] - A significant lease of 500,000 square feet was executed in the Savannah market with zero downtime and a 25% cash leasing spread [10] - The company has approximately 2.5 million square feet of development activity across 11 buildings, with 50% under construction and 16% pre-leased [14] Q&A Session Summary Question: Clarification on new leasing activity - Management confirmed that 1 million square feet of new leases were signed in the last 30 to 60 days, with a mix of new and renewal leases [25][26] Question: Demand across different submarkets - Management noted healthy demand in Midwest markets and the Sunbelt, with some weakness in Atlanta and San Diego, but overall tenant activity remains strong [27][28] Question: Trends in the private transactions market - Management observed that while the private market remains strong, some portfolios have been pulled from the market due to pricing volatility [42][44] Question: Update on credit loss and American Tire - Management stated that American Tire is current on rent, and the guidance for credit loss remains unchanged at 75 basis points [60][61] Question: Insights into leasing activity and concessions - Management indicated that while some concessions may be offered, they are generally holding out for the best net effective rent [106] Question: Update on development pipeline demand - Management reported good activity in development projects, although new leasing for new developments is slower due to macroeconomic factors [72][74]
STAG Industrial(STAG) - 2025 Q1 - Earnings Call Transcript
2025-04-30 14:00
Financial Data and Key Metrics Changes - Core FFO per share was $0.61 for the quarter, an increase of 3.4% compared to last year [13] - Cash available for distribution totaled $106.5 million, an increase of 8.5% compared to the prior period [13] - Leverage remains low with net debt to annualized run rate adjusted EBITDA equal to 5.2 times [13] - Liquidity stood at $1 billion at quarter end [13] Business Line Data and Key Metrics Changes - 36 leases totaling 5 million square feet were commenced during the quarter, generating cash and straight line leasing spreads of 27.3% and 42.1% respectively [14] - Retention for the quarter was 85.3% [14] - The company has signed 3.6 million square feet of leases commencing in the second quarter, with 1 million being new leasing [21][22] Market Data and Key Metrics Changes - The national under construction pipeline decreased more than 16% sequentially since the fourth quarter [9] - Weaker economic growth may negatively impact warehouse space demand, but this would be partially offset by increased near shoring and on shoring activity [9] Company Strategy and Development Direction - The company views the diversification of supply chains by tenants as a net positive due to its geographic diversity and focus on CBRE Tier one markets [7] - The company is maintaining its acquisition guidance, which is back-end weighted, with minimal impact to core FFO from acquisitions [46] - The company is focused on a broad mix of assets for acquisitions, evaluating both long-term and short-term leases [56] Management's Comments on Operating Environment and Future Outlook - Management noted that while tenant activity was healthy, the escalation of the global trade war continues to create uncertainty [7] - The company is optimistic about the demand for new leasing, with a strong start in the second quarter [34] - Management is cautious about the macroeconomic environment but remains confident in achieving its leasing targets for 2025 [78] Other Important Information - The company sold one building in Nashua, New Hampshire for gross proceeds of $67 million, representing a cash cap rate of 4.9% [11] - The company has approximately 2.5 million square feet of activity across 11 buildings in the U.S., with 50% under construction and 16% pre-leased [12] Q&A Session Summary Question: Clarification on new leasing activity - Management confirmed that 1 million square feet of new leases were signed in the last 30 to 60 days, with a mix of new and renewal leases [21][23] Question: Demand across different submarkets - Management noted healthy demand in Midwest markets and the Sunbelt, with some weakness in Atlanta and San Diego [25][26] Question: Trends in the private transactions market - Management observed that while there is still buyer interest, some portfolios have been pulled from the market due to pricing volatility [42][43] Question: Insights on credit loss - Management indicated minimal credit loss in the first quarter, with American Tire Distributors current on their 2025 rents [60][61] Question: Update on leasing activity and concessions - Management stated that while they are holding out for the best net effective rent, some markets may see increased free rent offers [108]
STAG Industrial(STAG) - 2025 Q1 - Earnings Call Presentation
2025-04-30 08:17
Financial Performance - Net income attributable to common stockholders increased by 149.7% to $91340 thousand, compared to $36580 thousand in Q1 2024[113] - Core FFO per diluted share increased by 3.4% to $061, compared to $059 in Q1 2024[113] - Cash NOI increased by 8.1% to $157197 thousand, compared to $145472 thousand in Q1 2024[113] - Same Store Cash NOI increased by 3.4% to $144620 thousand, compared to $139922 thousand in Q1 2024[113] - Cash Available for Distribution increased by 8.5% to $106486 thousand, compared to $98133 thousand in Q1 2024[113] Portfolio and Leasing Activity - The company acquired three buildings totaling 393564 square feet for $43285 thousand, with a Cash Capitalization Rate of 6.8% and a Straight-Line Capitalization Rate of 7.0%[28, 116] - One building was sold, consisting of 337391 square feet, for $67000 thousand, resulting in a net gain of $49913 thousand[34, 16] - The total portfolio Occupancy Rate was 95.9%, and the Operating Portfolio Occupancy Rate was 96.8% as of March 31, 2025[9] - Operating Portfolio leases commenced for 4962628 square feet, resulting in a Cash Rent Change of 27.3% and a Straight-Line Rent Change of 42.1%[37, 121] - Retention was 85.3% for 55 million square feet of leases expiring in the quarter[37, 121]
Stag Industrial (STAG) Tops Q1 FFO and Revenue Estimates
ZACKS· 2025-04-29 22:40
分组1 - Stag Industrial (STAG) reported quarterly funds from operations (FFO) of $0.61 per share, exceeding the Zacks Consensus Estimate of $0.60 per share, and up from $0.59 per share a year ago, representing an FFO surprise of 1.67% [1] - The company achieved revenues of $205.57 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.29%, compared to $187.54 million in the same quarter last year [2] - Stag has consistently outperformed consensus FFO and revenue estimates over the last four quarters, achieving this four times [2] 分组2 - The stock's immediate price movement will largely depend on management's commentary during the earnings call and future FFO expectations [3][4] - Stag shares have declined approximately 2.9% since the beginning of the year, while the S&P 500 has decreased by 6% [3] - The current consensus FFO estimate for the upcoming quarter is $0.62 on revenues of $202.73 million, and for the current fiscal year, it is $2.49 on revenues of $820.67 million [7] 分组3 - The Zacks Industry Rank indicates that the REIT and Equity Trust - Other sector is currently in the bottom 38% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in estimate revisions, which can be tracked by investors [5][6]
STAG Industrial(STAG) - 2025 Q1 - Quarterly Report
2025-04-29 20:09
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________________________ FORM 10-Q ____________________________________________________________________________ Maryland 27-3099608 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 1-34907 STAG Industrial, Inc. (Exact name of registrant as specified in its charter) ___ ...
STAG Industrial(STAG) - 2025 Q1 - Quarterly Results
2025-04-29 20:07
[Overview and Highlights](index=1&type=section&id=STAG%20INDUSTRIAL%20ANNOUNCES%20FIRST%20QUARTER%202025%20RESULTS) This section presents the key financial and operational achievements for the first quarter of 2025 [First Quarter 2025 Highlights](index=1&type=section&id=First%20Quarter%202025%20Highlights) The company reported strong Q1 2025 operational success, with significant growth in net income, FFO, and leasing activity Key Performance Metrics | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Income per Share (diluted) | $0.49 | $0.20 | +145.0% | | Core FFO per Share (diluted) | $0.61 | $0.59 | +3.4% | | Cash NOI | $157.2M | $145.5M | +8.1% | | Same Store Cash NOI | $144.6M | $139.9M | +3.4% | | Cash Available for Distribution | $106.5M | $98.1M | +8.5% | - Acquired three buildings (393,564 sq ft) for **$43.3 million** with a Cash Capitalization Rate of **6.8%**[5](index=5&type=chunk) - Sold one building (337,391 sq ft) for **$67.0 million**, resulting in a net gain of **$49.9 million**[5](index=5&type=chunk) - Commenced leases for **5.0 million square feet**, achieving a Cash Rent Change of **27.3%** and a Straight-Line Rent Change of **42.1%**[5](index=5&type=chunk) - Achieved an Occupancy Rate of **96.8%** on the Operating Portfolio and **85.3%** retention for leases expiring in the quarter[5](index=5&type=chunk) [Financial and Operating Performance](index=3&type=section&id=Financial%20and%20Operating%20Performance) This section details the company's financial results, capital activities, and leasing performance for the quarter [Key Financial Measures](index=3&type=section&id=Key%20Financial%20Measures) The company demonstrated strong financial growth in Q1 2025 with a 149.7% surge in net income and an 8.1% increase in Cash NOI Financial Highlights (Q1 2025 vs Q1 2024) | Metrics (in $000s, except per share data) | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Net income attributable to common stockholders | $91,340 | $36,580 | 149.7% | | Net income per common share — diluted | $0.49 | $0.20 | 145.0% | | Cash NOI | $157,197 | $145,472 | 8.1% | | Same Store Cash NOI | $144,620 | $139,922 | 3.4% | | Adjusted EBITDAre | $146,413 | $134,667 | 8.7% | | Core FFO | $115,241 | $109,039 | 5.7% | | Core FFO per share / unit — diluted | $0.61 | $0.59 | 3.4% | | Cash Available for Distribution | $106,486 | $98,133 | 8.5% | [Acquisition, Development and Disposition Activity](index=3&type=section&id=Acquisition%2C%20Development%20and%20Disposition%20Activity) The company actively managed its portfolio through strategic acquisitions and a significant disposition, maintaining a robust acquisition pipeline Q1 2025 Transaction Summary | Activity | Buildings | Square Feet | Price ($000s) | W.A. Cash Cap Rate | | :--- | :--- | :--- | :--- | :--- | | Q1 Acquisitions | 3 | 393,564 | $43,285 | 6.8% | | Q1 Dispositions | 1 | 337,391 | $67,000 | N/A | - The acquisition pipeline includes 181 buildings, totaling 30.4 million square feet, with an estimated value of **$3.8 billion**[13](index=13&type=chunk) [Leasing Activity](index=4&type=section&id=Leasing%20Activity) The company executed significant leasing for 5.0 million square feet in Q1 2025, achieving strong rent growth and high tenant retention Q1 2025 Leasing Summary | Lease Type | Square Feet | Lease Count | Cash Rent Change | SL Rent Change | Retention | | :--- | :--- | :--- | :--- | :--- | :--- | | New Leases | 279,055 | 4 | 34.0% | 47.0% | N/A | | Renewal Leases | 4,683,573 | 32 | 27.0% | 41.9% | 85.3% | | **Total / W.A.** | **4,962,628** | **36** | **27.3%** | **42.1%** | **85.3%** | - As of April 28, 2025, the company had addressed **78.5%** of its expected 2025 new and renewal leasing, covering 11.3 million square feet and achieving a Cash Rent Change of **25.1%**[19](index=19&type=chunk) - A new lease for 102,060 square feet was signed at the company's development project in Wellford, South Carolina[18](index=18&type=chunk) [Capital Markets Activity](index=4&type=section&id=Capital%20Markets%20Activity) The company maintained a healthy balance sheet and strong liquidity while proactively managing its debt through note repayment and new issuance - As of March 31, 2025, Net Debt to Annualized Run Rate Adjusted EBITDAre was **5.2x** and Liquidity was **$493.1 million**[20](index=20&type=chunk) - On February 20, 2025, the company paid its **$100 million** fixed rate senior unsecured note at maturity[20](index=20&type=chunk) - Subsequent to quarter end, the company agreed to issue **$550 million** of fixed rate senior unsecured notes with a weighted average interest rate of **5.65%** and a weighted average tenor of **6.5 years**[21](index=21&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents the company's consolidated balance sheets and statements of operations for the reporting period [Consolidated Balance Sheets](index=5&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) The company's total assets grew slightly to $6.85 billion as of March 31, 2025, with stable liabilities and a modest increase in equity Balance Sheet Summary | Balance Sheet Item (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total rental property, net | $6,500,605 | $6,495,779 | | Total assets | $6,847,859 | $6,833,335 | | Total liabilities | $3,304,207 | $3,304,227 | | Total stockholders' equity | $3,466,951 | $3,457,651 | | Total equity | $3,543,652 | $3,529,108 | [Consolidated Statements of Operations](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Total revenue and net income increased significantly in Q1 2025, driven by operational performance and a gain on the sale of property Statement of Operations Summary | Income Statement Item (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenue | $205,574 | $187,543 | | Total expenses | $131,456 | $124,013 | | Gain on the sale of rental property, net | $49,913 | $— | | Net income | $93,362 | $37,453 | | Net income attributable to common stockholders | $91,340 | $36,580 | | Net income per share — diluted | $0.49 | $0.20 | [Non-GAAP Measures and Reconciliations](index=7&type=section&id=Non-GAAP%20Measures%20and%20Reconciliations) This section provides reconciliations of GAAP to non-GAAP financial measures and defines key performance indicators [Reconciliations of GAAP to Non-GAAP Measures](index=7&type=section&id=RECONCILIATIONS%20OF%20GAAP%20TO%20NON-GAAP%20MEASURES) This section details the reconciliation of GAAP Net Income to key non-GAAP metrics including Cash NOI, Core FFO, and CAD for Q1 2025 Reconciliation of Net Income to Cash NOI (Q1 2025) | Reconciliation to Cash NOI (Q1 2025, in thousands) | Amount | | :--- | :--- | | Net income | $93,362 | | +/- Adjustments (G&A, D&A, Interest, etc.) | $68,534 | | **Net operating income (NOI)** | **$161,896** | | - Straight-line rent & lease amortization | ($4,699) | | **Cash net operating income (Cash NOI)** | **$157,197** | Reconciliation of Net Income to Core FFO (Q1 2025) | Reconciliation to Core FFO (Q1 2025, in thousands) | Amount | | :--- | :--- | | Net income | $93,362 | | + Rental property depreciation and amortization | $73,814 | | - Gain on the sale of rental property, net | ($49,913) | | **Funds from operations (FFO)** | **$117,263** | | +/- Adjustments (Gain on involuntary conversion, etc.) | ($1,855) | | **Core funds from operations (Core FFO)** | **$115,241** | [Non-GAAP Financial Measures and Other Definitions](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Other%20Definitions) This section defines key non-GAAP financial measures and operational terms to clarify how the company measures its performance - **Core FFO** is defined as FFO adjusted to exclude items such as debt extinguishment expenses, gain/loss on involuntary conversion, and other non-recurring expenses[44](index=44&type=chunk) - **Cash NOI** is defined as NOI less rental property straight-line rent adjustments and the amortization of above and below market leases[50](index=50&type=chunk) - **Same Store properties** are defined as properties that were in the Operating Portfolio for the entirety of the comparative periods presented, with results excluding termination fees and other one-time income[58](index=58&type=chunk) [Other Information](index=4&type=section&id=Other%20Information) This section provides details on the upcoming conference call and important forward-looking statement disclosures [Conference Call Information](index=4&type=section&id=Conference%20Call) The company will host a conference call on April 30, 2025, to discuss quarterly results, with access details provided - A conference call to discuss Q1 2025 results is scheduled for **Wednesday, April 30, 2025, at 10:00 a.m. (Eastern Time)**[22](index=22&type=chunk) - Access to the live call, a replay, and a simultaneous webcast is available through provided phone numbers and the Investor Relations section of the company's website[22](index=22&type=chunk)[23](index=23&type=chunk) [Forward-Looking Statements](index=14&type=section&id=Forward-Looking%20Statements) This section contains a safe harbor statement cautioning that forward-looking statements are subject to risks and uncertainties - The earnings release contains forward-looking statements that are subject to known and unknown risks, uncertainties, and other factors which could cause actual results to differ materially from current expectations[64](index=64&type=chunk) - The company disclaims any obligation to publicly release updates or revisions to any forward-looking statements, except as required by federal securities laws[64](index=64&type=chunk)
STAG INDUSTRIAL ANNOUNCES FIRST QUARTER 2025 RESULTS
Prnewswire· 2025-04-29 20:06
BOSTON, April 29, 2025 /PRNewswire/ -- STAG Industrial, Inc. (the "Company") (NYSE:STAG), today announced its financial and operating results for the quarter ended March 31, 2025."The level of operational success the Company achieved to start 2025 was impressive," said Bill Crooker, President and Chief Executive Officer of the Company. "STAG has set the foundation for sustainable growth in 2025 and will continue to benefit from a strong balance sheet, ample liquidity and broad market diversification."First ...
STAG Industrial: Bottom-Fishing For A 5% Yield
Seeking Alpha· 2025-04-20 13:34
Core Insights - STAG Industrial Inc. is identified as a promising industrial-focused real estate investment trust (REIT) with a solid dividend yield of 5% paid monthly and a dividend payout ratio of approximately 61% [1] Financial Performance - The company has growing core funds from operations, indicating a positive trend in its financial health and operational efficiency [1] Investment Appeal - The combination of a strong dividend yield and a reasonable payout ratio makes STAG Industrial an attractive option for income-focused investors [1]
STAG INDUSTRIAL TO ISSUE $550 MILLION OF SENIOR UNSECURED NOTES
Prnewswire· 2025-04-15 20:06
BOSTON, April 15, 2025 /PRNewswire/ -- STAG Industrial, Inc. (the "Company") (NYSE:STAG) today announced that it entered into a note purchase agreement to issue $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. The transaction consists of $350 million of 5.50% notes with a five-year term maturing on June 25, 2030; $100 million of 5.82% notes with an eight-year term maturing on June ...
STAG Industrial: Another REIT Dip I'm Not Buying Yet
Seeking Alpha· 2025-04-13 17:14
Group 1 - The article suggests that not all stocks are equally affected by tariff wars, using STAG Industrial REIT (STAG) as an example to challenge the notion that tariffs are the sole influence on stock performance [1] - The author emphasizes the importance of understanding market narratives and teaches subscribers how to interpret these stories for investment decisions [1] Group 2 - The article does not provide any specific financial data or performance metrics related to STAG Industrial REIT or other companies [2][3]