STAG Industrial(STAG) - 2025 Q1 - Quarterly Results

Overview and Highlights This section presents the key financial and operational achievements for the first quarter of 2025 First Quarter 2025 Highlights 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] - Sold one building (337,391 sq ft) for $67.0 million, resulting in a net gain of $49.9 million[5] - 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] - Achieved an Occupancy Rate of 96.8% on the Operating Portfolio and 85.3% retention for leases expiring in the quarter[5] Financial and Operating Performance This section details the company's financial results, capital activities, and leasing performance for the quarter Key Financial Measures 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 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] Leasing Activity 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] - A new lease for 102,060 square feet was signed at the company's development project in Wellford, South Carolina[18] Capital Markets Activity 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] - On February 20, 2025, the company paid its $100 million fixed rate senior unsecured note at maturity[20] - 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] Financial Statements This section presents the company's consolidated balance sheets and statements of operations for the reporting period Consolidated Balance Sheets 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 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 This section provides reconciliations of GAAP to non-GAAP financial measures and defines key performance indicators Reconciliations of GAAP to Non-GAAP Measures 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 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] - Cash NOI is defined as NOI less rental property straight-line rent adjustments and the amortization of above and below market leases[50] - 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] Other Information This section provides details on the upcoming conference call and important forward-looking statement disclosures Conference Call Information 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] - 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][23] Forward-Looking Statements 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] - The company disclaims any obligation to publicly release updates or revisions to any forward-looking statements, except as required by federal securities laws[64]