STAG Industrial(STAG) - 2024 Q4 - Annual Results

Financial Performance - Reported net income attributable to common stockholders for Q4 2024 was $50.9 million, a 22.1% increase from $41.7 million in Q4 2023[5] - Achieved Core FFO per diluted share of $0.61 for Q4 2024, up 5.2% from $0.58 in Q4 2023, and $2.40 for the full year 2024, a 4.8% increase from $2.29 in 2023[5] - Produced Cash NOI of $155.5 million for Q4 2024, an 8.6% increase compared to $143.1 million in Q4 2023, and $597.8 million for the full year 2024, an 8.5% increase from $550.9 million in 2023[5] - In Q4 2024, the Company reported total revenue of $199.3 million, an increase of 8.3% from $183.3 million in Q4 2023[30] - Rental income for Q4 2024 was $198.7 million, up 8.8% from $182.6 million in Q4 2023[30] - Net income for Q4 2024 was $52,008,000, an increase of 22% compared to $42,628,000 in Q4 2023[33] - Cash net operating income (NOI) for Q4 2024 reached $155,470,000, up from $143,131,000 in Q4 2023, representing an increase of 8.5%[33] - Funds from operations (FFO) for the year ended December 31, 2024, totaled $458,741,000, a 8.9% increase from $421,317,000 in 2023[36] - Core funds from operations for Q4 2024 were $113,515,000, compared to $108,538,000 in Q4 2023, reflecting a growth of 4.5%[36] - Adjusted EBITDAre for the year ended December 31, 2024, was $557,350,000, an increase of 8.8% from $511,893,000 in 2023[36] - Same Store Cash NOI for the year ended December 31, 2024, was $550,246,000, up from $520,315,000 in 2023, indicating a growth of 5.8%[33] - Total NOI for Q4 2024 was $159,061,000, compared to $146,696,000 in Q4 2023, marking an increase of 8.4%[33] - Cash available for distribution for the year ended December 31, 2024, was $369,814,000, compared to $361,278,000 in 2023, showing a slight increase of 2.0%[36] Asset and Liability Management - As of December 31, 2024, total assets increased to $6.83 billion from $6.28 billion as of December 31, 2023, reflecting a growth of 8.8%[28] - Total liabilities rose to $3.30 billion as of December 31, 2024, compared to $2.84 billion a year earlier, marking an increase of 16.2%[28] - The Company's net debt to annualized run rate adjusted EBITDAre was 5.2x as of December 31, 2024[23] - The Company had liquidity of $623.1 million as of December 31, 2024[23] Leasing and Occupancy - Achieved an occupancy rate of 96.5% across the total portfolio as of December 31, 2024[2] - Commenced Operating Portfolio leases of 2.4 million square feet in Q4 2024, resulting in a Cash Rent Change of 19.4%[16] - Addressed 70.2% of expected 2025 new and renewal leasing, consisting of 9.7 million square feet, achieving a Cash Rent Change of 23.8%[20] - Produced Same Store Cash NOI of $139.2 million for Q4 2024, a 4.4% increase from $133.4 million in Q4 2023[5] Acquisitions and Dispositions - Acquired 15 buildings totaling 2.4 million square feet for $293.7 million in Q4 2024, with a Cash Capitalization Rate of 6.2%[7] - Sold two buildings in Q4 2024 for $29.4 million, totaling 366,599 square feet[15] Financial Reporting and Future Outlook - The Company plans to host a conference call on February 13, 2025, to discuss the quarter's results[24] - A supplemental information package with additional financial details is available on the Company's website[25] - The company reported a loss on impairment of $4,967,000 for the year ended December 31, 2024[33] - Forward-looking statements indicate that actual results may differ due to various risks and uncertainties, emphasizing the importance of cautious interpretation of future projections[68] Definitions and Metrics - The company defines Funds from Operations (FFO) in accordance with NAREIT standards, which excludes gains or losses from sales of depreciable operating property and impairment write-downs[48] - Core FFO excludes amortization of above and below market leases, debt extinguishment expenses, and non-recurring other expenses, providing a clearer view of operational performance[49] - Net operating income (NOI) is defined as rental income minus property expenses, excluding depreciation and amortization, which helps assess the core operations of the properties[53] - Cash NOI is calculated by adjusting NOI for straight-line rent adjustments and amortization of above and below market leases, providing a more accurate measure of cash flow[54] - Run Rate Cash NOI includes adjustments for a full period of acquisitions and dispositions, but does not predict future results, highlighting the variability in performance[55] - The company emphasizes that occupancy rate is a key metric, defined as the percentage of total leasable square footage for which revenue recognition has commenced[57] - The Operating Portfolio includes all stabilized buildings, excluding non-core properties and those held for sale, which is crucial for understanding the company's asset base[58] - The Pipeline includes transactions under consideration that have passed initial screening, indicating potential future growth opportunities[59] - Renewal Leases are defined as leases signed by existing tenants to extend terms for 12 months or more, reflecting tenant retention strategies[60]