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