STAG

Interested in Stag Industrial, Inc.? Here are five stocks we like better. STAG raised its 2026 outlook, increasing Core FFO guidance to $2.61–$2.65 per share, same-store cash NOI growth guidance to 3%–3.5%, acquisition guidance to $400 million–$700 million, and average occupancy guidance to 96.25%–97.25%. Industrial market conditions improved, with first-half national net absorption reaching 111 million square feet and the construction pipeline down roughly half from its 2022 peak. STAG reported 19.8% cash leasing spreads, 75.7% tenant retention, and strong demand from e-commerce, manufacturing, and data center-related users. STAG acquired seven Class A industrial buildings for $287.1 million and continues to pursue development projects with expected stabilized yields above 7%. The company ended the quarter with net debt to adjusted EBITDA of 5.2 times and $614 million of liquidity. 7 Best Industrial REITs to Buy Now Stag Industrial (NYSE:STAG) said industrial real estate fundamentals continued to stabilize during the second quarter of 2026, citing stronger absorption, a reduced development pipeline and demand from e-commerce, manufacturing and data center-related users. Chief Executive Officer Bill Crooker said national net absorption reached 69 million square feet in the second quarter and 111 million square feet during the first half, which he described as the strongest start to a year since 2022. He said the construction pipeline has declined by roughly half from its 2022 peak, with projects under construction representing about 2% of total industrial stock and approximately 55% of that supply pre-leased. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now “We believe the improvement in both the supply and demand picture is real and durable,” Crooker said, adding that the company expects the environment to support improved rent growth heading into 2027. Core funds from operations, or Core FFO, totaled $0.65 per share in the quarter, up 3.2% from a year earlier, Chief Financial Officer Matts Pinard said. Same-store cash net operating income increased 3.4% in the second quarter and 3.9% year to date. → 3 Value ETFs to Consider as Growth Stocks Lag Behind During the quarter, STAG commenced 36 leases covering 5.6 million square feet. Cash leasing spreads were 19.8%, while straight-line leasing spreads were 33.7%. Quarterly tenant retention was 75.7%. Pinard said 92% of the company’s forecasted 2026 leasing activity had been addressed as of the call date, at levels consistent with its original outlook. Crooker said STAG continues to expect annual leasing spreads of 18% to 20%, likely toward the upper end of that range. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? Management said first-quarter leasing spreads had benefited from two leases that rolled up by nearly 60% after long-term agreements with low annual rent escalations expired. In the second quarter, one lease rolled closer to market rates because it had been a shorter-term lease with higher escalators. For 2027, Crooker said approximately 35% of the company’s leasing plan had already been addressed, compared with a historical range of roughly 26% to 28% at this point in the year. He attributed the progress to demand in STAG’s markets and tenants’ willingness to renew early. STAG acquired seven buildings for $287.1 million during the second quarter. The acquisitions carried cash and straight-line capitalization rates of 6.1% and 6.8%, respectively. Crooker said the properties were Class A assets in markets where the company expects to maintain a long-term presence, with lease escalators of about 3.3% and rents generally at or slightly below market levels. The company had nine development buildings totaling 2.3 million square feet that were not yet in service at quarter-end, with expected stabilized yields of 7.1%. In April, STAG closed on a 343,000-square-foot build-to-suit project in Rockwall, Texas, northeast of Dallas. Construction began in the second quarter, with delivery expected in the second quarter of 2027 and an anticipated yield of 7.5%. The company also acquired a 184,000-square-foot development site in Chandler, Arizona, southeast of Phoenix. STAG expects to break ground in late third-quarter 2026 and deliver the project in the third quarter of 2027. STAG leased 35,000 square feet, or 25%, of its Tampa development to a fueling solutions provider, with the lease beginning Aug. 1. Near quarter-end, the company leased 47,000 square feet, or 62%, of a Reno development to an e-commerce company, with the lease beginning Sept. 1. Crooker said development remains an attractive use of capital because expected yields are above 7%, though expanding the platform will take time. He said STAG has about $290 million of projects in construction or other non-stabilized development stages and would like to increase that amount by several hundred million dollars over time. The company expects additional dispositions during the second half, with sales likely weighted more toward non-core assets. Crooker said STAG sold three assets during the first half: two non-core properties at about an 8% capitalization rate and one opportunistic sale at a 5.7% capitalization rate. STAG has leased 2.3 million square feet to data center-related tenants since the beginning of 2025. Crooker said the demand has been concentrated across parts of the Midwest, Southeast and Texas, including Michigan, Wisconsin, South Carolina and Houston. Most of the data center-related leasing is tied to supporting existing data centers, such as storing generators and spare parts, rather than constructing new facilities, he said. The weighted average lease term for those tenants is six to seven years, and the leases were renewed or signed at rent increases of about 33%, according to Crooker. Management said the Midwest, Southeast and Texas have been strong markets, while certain port-oriented markets, including Savannah and Charleston, have been slower. El Paso and Reno also have been softer, with Crooker citing U.S.-Mexico relations in El Paso and weaker traditional logistics demand in Reno. Chief Operating Officer Steve Kimball said activity has remained strong for large bulk industrial space, while demand has broadened to smaller units of 70,000 square feet or less. He said leasing activity for properties between 150,000 and 300,000 square feet had been slower but appeared to be improving. STAG ended the quarter with net debt to annualized run-rate adjusted EBITDA of 5.2 times, or 5.1 times including $70 million of unsettled forward equity proceeds. Liquidity totaled $614 million. The company issued 3.4 million shares on a forward basis through its at-the-market program at an average gross price of $39 per share, generating $131 million of gross proceeds. It settled $59.8 million of forward ATM proceeds during the first half and plans to use the remaining $70 million to reduce revolver borrowings and fund acquisitions and development. After quarter-end, STAG repaid a $50 million private placement note that matured July 1. On July 16, the company refinanced two term loans totaling $350 million into a single loan maturing in January 2032. The debt carries a fixed rate of 3.53% through March 2027 and 4.79% thereafter through maturity. The refinancing also reduced pricing on the company’s revolver and outstanding term loans by 5 basis points. STAG raised its 2026 Core FFO guidance to $2.61 to $2.65 per share, increasing the midpoint by $0.01. The company also raised expected cash same-store NOI growth to 3% to 3.5%, increased acquisition guidance to $400 million to $700 million, and lifted average same-store occupancy guidance by 25 basis points to 96.25% to 97.25%. Stag Industrial, Inc is a real estate investment trust (REIT) that specializes in the acquisition, ownership and operation of single-tenant industrial properties throughout the United States. The company's portfolio is focused on free-standing warehouses, distribution centers and light manufacturing facilities designed to meet the logistical needs of a diverse tenant base. By concentrating on properties with straightforward layouts and minimal common-area maintenance, Stag Industrial seeks to deliver stable rental income and attractive risk-adjusted returns for its shareholders. Since its founding in 2010 and initial public offering in 2011, Stag Industrial has pursued a disciplined investment strategy centered on high-quality, well-located assets. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Stag Industrial Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Core FFO per Share: $0.65 for the quarter, an increase of 3.2% compared to last year. Net Debt to Adjusted EBITDA: 5.2 times, or 5.1 times when including $70 million of forward equity proceeds. Liquidity: $614 million at quarter end. Leasing Activity: 36 leases commenced across 5.6 million square feet, with cash and straight-line leasing spreads of 19.8% and 33.7%, respectively. Retention Rate: 75.7% for the quarter. Same-Store Cash NOI Growth: 3.4% for the quarter and 3.9% year-to-date. Acquisition Volume: $287.1 million for the second quarter. Development Activity: Nine buildings or 2.3 million square feet not in service, with expected stabilized yields of 7.1%. Guidance Updates: Credit loss guidance reduced to 30 basis points; average same-store occupancy guidance increased to 96.25%-97.5%; cash same-store growth guidance increased to 3%-3.5%. Corporate Guidance: Increased to a range of $2.61 to $2.65 per share. Warning! GuruFocus has detected 9 Warning Signs with STAG. Is STAG fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Stag Industrial Inc (NYSE:STAG) reported a strong increase in core FFO per share, up 3.2% from the previous year. The company achieved significant leasing spreads, with cash and straight-line spreads of 19.8% and 33.7%, respectively. Acquisition volume for the second quarter was robust at $287.1 million, indicating strong market activity. STAG's development platform is performing well, with nine buildings under development and expected stabilized yields of 7.1%. The company successfully refinanced its term loans, achieving interest expense savings and extending maturities to 2032. STAG has limited acquisition opportunities under contract or LOI, indicating potential challenges in maintaining acquisition momentum. Some markets, such as Reno and certain port markets, are experiencing slower demand, which could impact occupancy and leasing activity. The company noted a slight increase in leverage, with net debt to EBITDA at 5.2 times, which could pose risks if not managed carefully. There is uncertainty in the macro environment and interest rates, which could affect acquisition and disposition strategies. The company faces challenges in matching the timing of dispositions with acquisitions, which could impact financial performance. Q: Can you provide insights into the acquisition outlook for the rest of the year, given the strong Q2 performance? A: William Crooker, CEO: We don't have much under contract or LOI right now, which is why we only raised the guidance by $50 million at the midpoint. Typically, Q4 is our largest acquisition quarter. If rates stay stable, we feel confident we can maintain this pace. Q: How are you viewing the current acquisition environment, especially regarding cap rates and asset types? A: William Crooker, CEO: We acquired Class A assets with cash cap rates of 6.1% and straight-line cap rates of 6.8%. These are clean buildings with minimal CapEx leakage. Portfolio premiums vary, with middle-sized portfolios seeing some compression. Q: Can you discuss the leasing performance and expectations for the rest of the year? A: William Crooker, CEO: We expect 18% to 20% leasing spreads, likely closer to the higher end. The first quarter had some exceptional leases rolling up significantly, while the second quarter had one lease rolling closer to market. Overall, we're on track for our leasing plan. Q: What are the trends in data center demand across your portfolio? A: William Crooker, CEO: Data center demand is broad, particularly in the Midwest, Southeast, and Texas. It's primarily for servicing existing data centers, such as having generators and spare parts nearby. This demand is long-term, with strong credits and lease terms averaging seven years. Q: How is the development platform performing, and what are your future plans? A: William Crooker, CEO: Our development platform is performing well, with yields over 7%. We have $290 million in developments under construction and aim to increase this by a couple of hundred million. We're sourcing opportunities internally and through JV partners. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. STAG Industrial (STAG) drew fresh attention after reporting second quarter 2026 results, with quarterly revenue and net income above the prior year period, along with a new dividend declaration and updates on acquisitions and refinancing. See our latest analysis for STAG Industrial. At a share price of $40.72, STAG Industrial has a 30 day share price return of 3.3% and a year to date share price return of 10.3%. The 1 year total shareholder return of 18.6% points to momentum building around recent earnings, dividend and refinancing updates. If STAG Industrial’s recent move has you reviewing your income and real asset exposure, this can be a good moment to widen the search and uncover 18 top founder-led companies The recent move in STAG Industrial puts income and real estate exposure back on the radar. Does it make more sense to add at today’s price, or wait and hope for a cheaper entry as the numbers settle in? The most followed narrative pegs fair value for STAG Industrial at about $41.55, slightly above the last close at $40.72, which puts the focus squarely on what needs to go right operationally. Read the complete narrative. Want to see what is built into that fair value for STAG Industrial? The story leans heavily on specific rent growth, margin pressure, and a higher future earnings multiple. Curious how those moving pieces fit together into one price tag. Result: Fair Value of $41.55 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, STAG Industrial still faces the risk that longer lease-up periods and uneven demand across markets could pressure occupancy and future rent spreads. Find out about the key risks to this STAG Industrial narrative. While the most followed narrative puts STAG Industrial roughly 2% below fair value at $41.55, the current P/E of 31.9x tells a different story. It sits well above the global Industrial REITs average of 16x and slightly above the peer average of 30.1x, even though it is close to the 32x fair ratio. That combination suggests limited room for error if earnings or rent spreads do not track the script investors are using. For a closer look at how this pricing stacks up against earnings power, valuation drivers, and peers, it can help to step through a structured comparison before deciding how much risk feels acceptable at today’s multiple. See what the numbers say about this price — find out in our valuation breakdown. Given the mixed signals around STAG Industrial, it helps to look past headlines and focus on the details yourself. If you want a quick way to balance the concerns against the potential upside, start with our breakdown of 3 key rewards and 3 important warning signs. If STAG Industrial has sharpened your focus on where your money is working hardest, do not stop at a single stock. The screener shortlists below can quickly surface fresh ideas that fit your goals. Target consistency by reviewing companies with healthy cash reserves and manageable debt profiles using the solid balance sheet and fundamentals stocks screener (48 results). Hunt for mispriced opportunities by scanning stocks that pair quality fundamentals with lower valuations through the 49 high quality undervalued stocks. Lock in income ideas by focusing on companies with higher yield potential using the 8 dividend fortresses. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include STAG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

BOSTON, July 28, 2026 /PRNewswire/ -- STAG Industrial, Inc. (the "Company") (NYSE:STAG), today announced its financial and operating results for the quarter ended June 30, 2026. "The second quarter reflected sustained execution across our platform, supported by stabilizing industrial fundamentals," said Bill Crooker, President and Chief Executive Officer of the Company. "STAG enters the back half of 2026 with an active pipeline, a fortified balance sheet, and clear momentum." Second Quarter 2026 Highlights Reported $0.28 of net income per basic and diluted common share for the second quarter of 2026, compared to $0.27 of net income per basic and diluted common share for the second quarter of 2025. Reported $52.9 million of net income attributable to common stockholders for the second quarter of 2026, compared to net income attributable to common stockholders of $50.0 million for the second quarter of 2025. Achieved $0.65 of Core FFO per diluted share for the second quarter of 2026, an increase of 3.2% compared to the second quarter of 2025 Core FFO per diluted share of $0.63. Produced Same Store Cash NOI of $158.8 million for the second quarter of 2026, an increase of 3.4% compared to the second quarter of 2025 of $153.6 million. Acquired seven buildings in the second quarter of 2026, consisting of 2.6 million square feet, for $287.1 million, with a Cash Capitalization Rate of 6.1% and a Straight-Line Capitalization Rate of 6.8%. Sold two buildings in the second quarter of 2026, consisting of 299,467 square feet, for $23.1 million. Achieved an Occupancy Rate of 94.5% on the total portfolio and 95.5% on the Operating Portfolio as of June 30, 2026. Commenced Operating Portfolio leases of 5.6 million square feet for the second quarter of 2026, resulting in a Cash Rent Change and Straight-Line Rent Change of 19.8% and 33.7%, respectively. Experienced 75.7% Retention for 6.0 million square feet of leases expiring in the quarter. Commenced a Build-to-Suit development project totaling 342,975 square feet of warehouse and distribution space at 3400 Discovery Boulevard in Dallas, Texas. Signed three leases totaling 152,824 square feet of warehouse and distribution space across the Company's development projects. Subsequent to quarter end, refinanced and combined $150 million term loan A and $200 million term loan F, which were scheduled to mature in March 2027 and now matures January 16, 2032. Subsequent to quarter end, signed a lease totaling 47,113 square feet of warehouse and distribution space at the Company's development project at 6980 Resource Drive in Reno, Nevada. Please refer to the Non-GAAP Financial Measures and Other Definitions section at the end of this release for definitions of capitalized terms used in this release. The Company will host a conference call tomorrow, Wednesday, July 29, 2026 at 10:00 a.m. (Eastern Time), to discuss the quarter's results and provide information about acquisitions, operations, capital markets and corporate activities. Details of the call can be found at the end of this release. Key Financial Measures Definitions of the above-mentioned non-GAAP financial measures, together with reconciliations to net income (loss) in accordance with GAAP, appear at the end of this release. Please also see the Company's supplemental information package for additional disclosure. Acquisition, Development and Disposition Activity For the three months ended June 30, 2026, the Company acquired seven buildings for $287.1 million with an Occupancy Rate of 100.0% upon acquisition. The chart below details the acquisition activity for the quarter: The chart below details the 2026 acquisition activity and pipeline through July 27, 2026: Additionally, in the second quarter, the Company acquired two vacant land parcels for $20.5 million. The chart below details the disposition activity for the six months ended June 30, 2026: Leasing Activity The chart below details the leasing activity for leases commenced during the three months ended June 30, 2026: The chart below details the leasing activity for leases commenced during the six months ended June 30, 2026: Additionally, for the three and six months ended June 30, 2026, leases commenced totaling 204,629 and 385,653 square feet, respectively, related to Value Add assets and first generation leasing. These are excluded from the Operating Portfolio statistics above. The Company commenced a Build-to-Suit development project totaling 342,975 square feet of warehouse and distribution space at 3400 Discovery Boulevard in Dallas, Texas. The Company signed a lease totaling 72,900 square feet of warehouse and distribution space at the Company's development project at 452 Casual Drive in Greenville, South Carolina. This building is now 100% leased. The Company signed a lease totaling 44,980 square feet of warehouse and distribution space at the Company's development project at 2745 Piedmont Commerce Street SW in Charlotte, North Carolina. This building is now 90% leased. The Company signed a lease totaling 34,944 square feet of warehouse and distribution space at the Company's development project at 6508 Powell Road in Tampa, Florida. This building is now 25% leased. Subsequent to quarter end, the Company signed a lease totaling 47,113 square feet of warehouse and distribution space at the Company's development project at 6980 Resource Drive in Reno, Nevada. This building is now 62% leased. Year to date, the Company signed seven leases totaling 677,528 square feet of warehouse and distribution space across the Company's development projects. As of July 27, 2026, addressed 91.7% of expected 2026 new and renewal leasing, consisting of 16.6 million square feet, achieving Cash Rent Change of 20.5%. Capital Markets Activity As of July 27, 2026, the Company sold 3.4 million shares on a forward basis under the ATM common stock offering program at an average gross price of $39.00 per share, or $131.3 million in the aggregate, during the year. The Company does not initially receive any proceeds from the sale of shares on a forward basis and has until the agreed-upon maturity date (typically one year) to settle the forward contract. In the second quarter of 2026, the Company received net proceeds of $59.8 million related to forward sales that occurred during the year under the Company's ATM offering program. The Company has total forward equity net proceeds of $70 million available unsettled as of July 27, 2026. As of June 30, 2026, Net Debt to Annualized Run Rate Adjusted EBITDAre was 5.2x and Liquidity was $613.7 million. Subsequent to quarter end, on July 1, 2026, the Company paid at maturity $50 million of fixed rate senior unsecured notes. Subsequent to quarter end, on July 16, 2026, the Company refinanced and combined $150 million term loan A and $200 million term loan F, which were scheduled to mature in March 2027. The new term loan, totaling $350 million in principal, now matures January 16, 2032. The new term loan bears an aggregate fixed interest rate, inclusive of interest rate swaps, of 3.53% until March 2027 and will bear an aggregate fixed interest rate, inclusive of interest rate swaps, of 4.79% from March 2027 through January 16, 2032. Through the refinance, the Company also obtained a five basis points savings across all term loans and the Unsecured Credit Facility. Quarterly Dividend Declaration On July 27, 2026, the Company's Board of Directors authorized a dividend in the amount of $0.3875 per share for the third quarter of 2026, payable in cash on October 15, 2026, to common stockholders and common unit holders of record as of September 30, 2026. Conference Call The Company will host a conference call tomorrow, Wednesday, July 29, 2026, at 10:00 a.m. (Eastern Time) to discuss the quarter's results. The call can be accessed live over the phone toll-free by dialing (877) 407-4018, or for international callers, (201) 689-8471. A replay will be available shortly after the call and can be accessed by dialing (844) 512-2921, or for international callers, (412) 317-6671. The passcode for the replay is 13761520. Interested parties may also listen to a simultaneous webcast of the conference call by visiting the Investor Relations section of the Company's website at www.stagindustrial.com, or by clicking on the following link: http://ir.stagindustrial.com/QuarterlyResults Supplemental Schedule The Company has provided a supplemental information package with additional disclosure and financial information on its website (www.stagindustrial.com) under the "Quarterly Results" tab in the Investor Relations section. Non-GAAP Financial Measures and Other Definitions Acquisition Capital Expenditures: We define Acquisition Capital Expenditures as capital expenditures identified at the time of acquisition. Acquisition Capital Expenditures also include new lease commissions and tenant improvements for space that was not occupied under the Company's ownership. Cash Available for Distribution: Cash Available for Distribution represents Core FFO, excluding non-rental property depreciation and amortization, straight-line rent adjustments, non-cash portion of interest expense, non-cash compensation expense, and deducts capital expenditures reimbursed by tenants, capital expenditures, leasing commissions and tenant improvements, and severance costs. Cash Available for Distribution should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, and we believe that to understand our performance further, these measurements should be compared with our reported net income or net loss in accordance with GAAP, as presented in our consolidated financial statements. Cash Available for Distribution excludes, among other items, depreciation and amortization and capture neither the changes in the value of our buildings that result from use or market conditions of our buildings, all of which have real economic effects and could materially impact our results from operations, the utility of these measures as measures of our performance is limited. In addition, our calculation of Cash Available for Distribution may not be comparable to similarly titled measures disclosed by other REITs. Cash Capitalization Rate: We define Cash Capitalization Rate as calculated by dividing (i) the Company's estimate of year one cash net operating income from the applicable property's operations stabilized for occupancy (post-lease-up for vacant properties), which does not include termination income, solar income, miscellaneous other income, capital expenditures, general and administrative costs, reserves, tenant improvements and leasing commissions, credit loss, or vacancy loss, by (ii) the GAAP purchase price plus estimated Acquisition Capital Expenditures. These Capitalization Rate estimates are subject to risks, uncertainties, and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control, including those risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2025. Cash Rent Change: We define Cash Rent Change as the percentage change in the base rent of the lease commenced during the period compared to the base rent of the Comparable Lease for assets included in the Operating Portfolio. The calculation compares the first base rent payment due after the lease commencement date compared to the base rent of the last monthly payment due prior to the termination of the lease, excluding holdover rent. Rent under gross or similar type leases are converted to a net rent based on an estimate of the applicable recoverable expenses. Comparable Lease: We define a Comparable Lease as a lease in the same space with a similar lease structure as compared to the previous in-place lease, excluding new leases for space that was not occupied under our ownership. Earnings before Interest, Taxes, Depreciation, and Amortization for Real Estate (EBITDAre), Adjusted EBITDAre, Annualized Adjusted EBITDAre, Run Rate Adjusted EBITDAre, and Annualized Run Rate Adjusted EBITDAre: We define EBITDAre in accordance with the standards established by the National Association of Real Estate Investment Trusts ("NAREIT"). EBITDAre represents net income (loss) (computed in accordance with GAAP) before interest expense, interest and other income, tax, depreciation and amortization, gains or losses on the sale of rental property, and loss on impairments. Adjusted EBITDAre further excludes straight-line rent adjustments, non-cash compensation expense, amortization of above and below market leases, net, gain (loss) on involuntary conversion, debt extinguishment and modification expenses, and other non-recurring items. We define Annualized Adjusted EBITDAre as Adjusted EBITDAre multiplied by four. We define Run Rate Adjusted EBITDAre as Adjusted EBITDAre plus incremental Adjusted EBITDAre adjusted for a full period of acquisitions and dispositions. Run Rate Adjusted EBITDAre does not reflect the Company's historical results and does not predict future results, which may be substantially different. We define Annualized Run Rate Adjusted EBITDAre as Run Rate Adjusted EBITDAre excluding allowable one-time items multiplied by four plus allowable one-time items. EBITDAre, Adjusted EBITDAre, and Run Rate Adjusted EBITDAre should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, and we believe that to understand our performance further, EBITDAre, Adjusted EBITDAre, and Run Rate Adjusted EBITDAre should be compared with our reported net income or net loss in accordance with GAAP, as presented in our consolidated financial statements. We believe that EBITDAre, Adjusted EBITDAre, and Run Rate Adjusted EBITDAre are helpful to investors as supplemental measures of the operating performance of a real estate company because they are direct measures of the actual operating results of our properties. We also use these measures in ratios to compare our performance to that of our industry peers. Funds from Operations (FFO) and Core FFO: We define FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts ("NAREIT"). FFO represents net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable operating property, gains (losses) from sales of land, impairment write-downs of depreciable real estate, rental property depreciation and amortization (excluding amortization of deferred financing costs and fair market value of debt adjustment) and after adjustments for unconsolidated partnerships and joint ventures. Core FFO excludes debt extinguishment and modification expenses and other expenses, gain (loss) on involuntary conversion, gain (loss) on swap ineffectiveness, and non-recurring other expenses. None of FFO or Core FFO should be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, and we believe that to understand our performance further, these measurements should be compared with our reported net income or net loss in accordance with GAAP, as presented in our consolidated financial statements. We use FFO as a supplemental performance measure because it is a widely recognized measure of the performance of REITs. FFO may be used by investors as a basis to compare our operating performance with that of other REITs. We and investors may use Core FFO similarly as FFO. However, because FFO and Core FFO exclude, among other items, depreciation and amortization and capture neither the changes in the value of our buildings that result from use or market conditions of our buildings, all of which have real economic effects and could materially impact our results from operations, the utility of these measures as measures of our performance is limited. In addition, other REITs may not calculate FFO in accordance with the NAREIT definition as we do, and, accordingly, our FFO may not be comparable to such other REITs' FFO. Similarly, our calculation of Core FFO may not be comparable to similarly titled measures disclosed by other REITs. GAAP: We define GAAP as generally accepted accounting principles in the United States. Liquidity: We define Liquidity as the amount of aggregate undrawn nominal commitments the Company could immediately borrow under the Company's unsecured debt instruments, consistent with the financial covenants, plus unrestricted cash balances. Market: We define Market as the market defined by CBRE-EA based on the building address. If the building is located outside of a CBRE-EA defined market, the city and state is reflected. Net Debt: We define Net Debt as the outstanding principal balance of the Company's total debt, less cash and cash equivalents and proceeds from pending reverse Section 1031 like-kind exchanges that are included in restricted cash. Net operating income (NOI), Cash NOI, and Run Rate Cash NOI: We define NOI as rental income, including reimbursements, less property expenses, which excludes depreciation, amortization, loss on impairments, general and administrative expenses, interest expense, interest income, gain (loss) on involuntary conversion, debt extinguishment and modification expenses, gain on sales of rental property, and other expenses. We define Cash NOI as NOI less rental property straight-line rent adjustments and less amortization of above and below market leases, net. We define Run Rate Cash NOI as Cash NOI plus Cash NOI adjusted for a full period of acquisitions and dispositions, less cash termination income, solar income and revenue associated with one-time tenant reimbursements of capital expenditures. Run Rate Cash NOI does not reflect the Company's historical results and does not predict future results, which may be substantially different. We consider NOI, Cash NOI and Run Rate Cash NOI to be appropriate supplemental performance measures to net income because we believe they help us, and investors understand the core operations of our buildings. None of these measures should be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, and we believe that to understand our performance further, these measurements should be compared with our reported net income or net loss in accordance with GAAP, as presented in our consolidated financial statements. Further, our calculations of NOI, Cash NOI and Run Rate NOI may not be comparable to similarly titled measures disclosed by other REITs. Occupancy Rate: We define Occupancy Rate as the percentage of total leasable square footage for which either revenue recognition has commenced in accordance with GAAP or the lease term has commenced as of the close of the reporting period, whichever occurs earlier. Operating Portfolio: We define the Operating Portfolio as all buildings that were acquired stabilized or have achieved Stabilization. The Operating Portfolio excludes non-core flex/office buildings, buildings contained in the Value Add Portfolio, and buildings classified as held for sale. Pipeline: We define Pipeline as a point in time measure that includes all of the transactions under consideration by the Company's acquisitions group that have passed the initial screening process. The pipeline also includes transactions under contract and transactions with non-binding LOIs. Renewal Lease: We define a Renewal Lease as a lease signed by an existing tenant to extend the term for 12 months or more, including (i) a renewal of the same space as the current lease at lease expiration, (ii) a renewal of only a portion of the current space at lease expiration, or (iii) an early renewal or workout, which ultimately does extend the original term for 12 months or more. Repositioning: We define Repositioning as significant capital improvements made to improve the functionality of a building without causing material disruption to the tenant or Occupancy Rate. Buildings undergoing Repositioning remain in the Operating Portfolio. Retention: We define Retention as the percentage determined by taking Renewal Lease square footage commencing in the period divided by square footage of leases expiring in the period for assets included in the Operating Portfolio. Same Store: We define Same Store properties as properties that were in the Operating Portfolio for the entirety of the comparative periods presented. The results for Same Store properties exclude termination fees, solar income, and revenue associated with one-time tenant reimbursements of capital expenditures. Same Store properties exclude Operating Portfolio properties with expansions placed into service or transferred from the Value Add Portfolio to the Operating Portfolio after January 1, 2025. Stabilization: We define Stabilization for assets under development or redevelopment to occur as the earlier of achieving 90% occupancy or 12 months after completion. Stabilization for assets that were acquired and immediately added to the Value Add Portfolio occurs under the following: if acquired with less than 75% occupancy as of the acquisition date, Stabilization will occur upon the earlier of achieving 90% occupancy or 12 months from the acquisition date, if acquired and will be less than 75% occupied due to known move-outs within two years of the acquisition date, Stabilization will occur upon the earlier of achieving 90% occupancy after the known move-outs have occurred or 12 months after the known move-outs have occurred. Straight-Line Capitalization Rate: We define Straight-Line Capitalization Rate as calculated by dividing (i) the Company's estimate of annual net operating income from the applicable property's operations stabilized for occupancy (post-lease-up for vacant properties), which is utilzing the average monthly base rent over the term of the lease and does not include termination income, solar income, miscellaneous other income, capital expenditures, general and administrative costs, reserves, tenant improvements and leasing commissions, credit loss, or vacancy loss, by (ii) the GAAP purchase price plus estimated Acquisition Capital Expenditures. These Capitalization Rate estimates are subject to risks, uncertainties, and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control, including those risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2025. Straight-Line Rent Change (SL Rent Change): We define SL Rent Change as the percentage change in the average monthly base rent over the term of the lease that commenced during the period compared to the Comparable Lease for assets included in the Operating Portfolio. Rent under gross or similar type leases are converted to a net rent based on an estimate of the applicable recoverable expenses, and this calculation excludes the impact of any holdover rent. Value Add Portfolio: We define the Value Add Portfolio as properties that meet any of the following criteria: less than 75% occupied as of the acquisition date; will be less than 75% occupied due to known move-outs within two years of the acquisition date; out of service with significant physical renovation of the asset; development. Weighted Average Lease Term: We define Weighted Average Lease Term as the contractual lease term in years, assuming that tenants exercise no renewal options, purchase options, or early termination rights, as of the lease start date weighted by square footage. Weighted Average Lease Term related to acquired assets reflects the remaining lease term in years as of the acquisition date weighted by square footage. Forward-Looking Statements This earnings release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. STAG Industrial, Inc. (STAG) intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe STAG's future plans, strategies and expectations, are generally identifiable by use of the words "believe," "will," "expect," "intend," "anticipate," "estimate," "should", "project" or similar expressions. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond STAG's control and which could materially affect actual results, performances or achievements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, the risk factors discussed in STAG's most recent Annual Report on Form 10-K for the year ended December 31, 2025, as updated by the Company's subsequent reports filed with the Securities and Exchange Commission. Accordingly, there is no assurance that STAG's expectations will be realized. Except as otherwise required by the federal securities laws, STAG disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in STAG's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. View original content to download multimedia:https://www.prnewswire.com/news-releases/stag-industrial-announces-second-quarter-2026-results-302836907.html

BOSTON, July 1, 2026 /PRNewswire/ -- STAG Industrial, Inc. (the "Company") (NYSE: STAG) today announced that the Company will release its second quarter 2026 operating and financial results after market close on Tuesday, July 28, 2026. The Company will host its quarterly earnings conference call on Wednesday, July 29, 2026, at 10:00 a.m. Eastern Time. The call can be accessed live over the phone toll-free by dialing (877) 407-4018, or for international callers, (201) 689-8471. A replay will be available shortly after the call and can be accessed by dialing (844) 512-2921, or for international callers, (412) 317-6671. The passcode for the replay is 13761520. Interested parties also may listen to a simultaneous webcast of the conference call by visiting the Investor Relations section of the Company's website at www.stagindustrial.com, or by clicking on the following link: http://ir.stagindustrial.com/CorporateProfile About STAG Industrial, Inc. STAG Industrial, Inc. is a real estate investment trust focused on the acquisition, development, ownership, and operation of industrial properties throughout the United States. As of March 31, 2026, the Company's portfolio consists of 601 buildings in 41 states with approximately 120.3 million rentable square feet. For additional information, please visit the Company's website at www.stagindustrial.com. Forward-Looking Statements This press release, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, are generally identifiable by use of the words "believe," "will," "expect," "intend," "anticipate," "estimate," "should," "project" or similar expressions. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company's control and which could materially affect actual results, performances or achievements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, the risk factors discussed in the Company's annual report on Form 10-K for the year ended December 31, 2025, as updated by the Company's quarterly reports on Form 10-Q. Accordingly, there is no assurance that the Company's expectations will be realized. Except as otherwise required by the federal securities laws, the Company disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in the Company's expectations with regard thereto or any change in events, conditions, or circumstances on which any such statement is based. View original content to download multimedia:https://www.prnewswire.com/news-releases/stag-industrial-to-report-second-quarter-2026-results-july-28-2026-302815076.html

STAG Industrial, Inc. has reported past first-quarter 2026 results showing revenue of US$224.21 million and net income of US$62.00 million, while also affirming a second-quarter cash dividend of US$0.3875 per share payable on July 15, 2026. Alongside softer earnings, management highlighted robust industrial leasing conditions, including stronger demand for larger-box space and emerging data center-related leases, while keeping full-year guidance unchanged. With management maintaining full-year guidance despite lower earnings, we'll assess how resilient leasing demand reshapes STAG Industrial's investment narrative. Invest in the nuclear renaissance through our list of 91 elite nuclear energy infrastructure plays powering the global AI revolution. To own STAG Industrial, you need to be comfortable with a focused bet on U.S. industrial real estate and the quality of its leasing demand. The latest quarter showed softer net income but solid revenue and healthy leasing commentary, so the industrial demand story remains intact in the near term, while the key risk is still that shifting tenant preferences toward mega facilities could pressure occupancy in STAG’s mid sized assets if conditions weaken. The most relevant update here is the Board’s reaffirmation of the Q2 2026 cash dividend of US$0.3875 per share, even alongside lower earnings. For income focused shareholders, that decision underscores management’s confidence in current cash flows from the existing portfolio, but it also sharpens attention on whether leasing strength and balance sheet flexibility can offset any future pressure on earnings and interest coverage. Yet investors should also be aware that rising vacancies in larger assets could interact with STAG’s expanding development pipeline and ... Read the full narrative on STAG Industrial (it's free!) STAG Industrial's narrative projects $1.1 billion revenue and $252.2 million earnings by 2029. Uncover how STAG Industrial's forecasts yield a $41.36 fair value, a 7% upside to its current price. Two members of the Simply Wall St Community currently see fair value for STAG between US$41.36 and US$47.96, highlighting a fairly tight but optimistic range of views. You should weigh these opinions against the risk that tenant consolidation into mega fulfillment centers could challenge demand for STAG’s core mid sized properties and consider how different scenarios might affect future returns. Explore 2 other fair value estimates on STAG Industrial - why the stock might be worth just $41.36! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your STAG Industrial research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision. Our free STAG Industrial research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate STAG Industrial's overall financial health at a glance. The market won't wait. These fast-moving stocks are hot now. Grab the list before they run: Find 49 companies with promising cash flow potential yet trading below their fair value. The latest GPUs need a type of rare earth metal called Terbium and there are only 31 companies in the world exploring or producing it. Find the list for free. Explore 26 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include STAG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Leasing demand is broadening — management reported a rebound in big-box activity and continued strength in the 150k–250k sq ft segment, with a quarterly record of 37 leases covering 6 million sq ft and cash leasing spreads of 20.9%. Data center-related demand is a new growth driver — STAG has signed eight data center-related leases totaling 1.6 million sq ft since early 2025, with ~35% leasing spreads and weighted-average lease terms just over eight years. Results and outlook remain solid and unchanged — Core FFO per share was $0.65 (up 6.6%), same-store cash NOI rose 4.1% with portfolio occupancy at 96.6% (trough expected in Q2), management kept 2026 guidance intact and cited a $3.9 billion transaction pipeline plus ongoing acquisitions and developments yielding ~7%. Interested in Stag Industrial, Inc.? Here are five stocks we like better. 7 Best Industrial REITs to Buy Now Stag Industrial (NYSE:STAG) reported first-quarter 2026 results against a backdrop of what management described as improving U.S. industrial leasing conditions, including a rebound in demand for larger-box space and continued strength in the mid-size segment where the company is concentrated. Chief Executive Officer Bill Crooker said industrial leasing “velocity and volume are healthy both market-wide and within STAG’s portfolio,” adding that year-over-year absorption continues to improve. He noted that “the multi-year weakness in demand for big box product has reversed,” with vacancy in larger spaces declining in many markets, while activity has also been strong in the 150,000 to 250,000 square foot segment. → Meta Posted Its Best Sales Growth Since 2021—So Why Did Shares Fall? Chief Financial Officer Matts Pinard reported Core FFO per share of $0.65 for the quarter, up 6.6% from the prior year. During the period, the company commenced 37 leases across 6 million square feet, producing cash and straight-line leasing spreads of 20.9% and 39.6%, respectively. Pinard said this was a quarterly record for total operating portfolio square feet leased. Pinard said tenant demand has been “strong” across multiple industries, including air freight and logistics, retail, and containers and packaging. Retention for the quarter was 69.5%, and management maintained full-year retention guidance of 70% to 80%. → 5 Stocks to Buy in May Before the Next AI Surge Hits Crooker highlighted a newer source of industrial demand tied to the rapid acceleration of data center construction. He said third-party logistics providers supporting those developments have created “a new segment of leasing demand for traditional warehouse facilities.” Since the beginning of 2025, STAG has signed eight leases totaling 1.6 million square feet with data center-related tenants. In response to analyst questions, Crooker said this activity has been most visible in Southeast and Midwest markets. He cited South Carolina—where he said the company signed three leases, including two in Greenville-Spartanburg—as well as Nashville, Wisconsin, Ohio, and Charlotte. Crooker added that the company anticipates further demand from data center-related tenants. → Bloom Energy May Be Solving AI’s Biggest Power Problem He also provided additional details on the tenant mix, describing a range of uses supporting data center development and operations, including a 3PL “serving a Meta data center contract,” generator distribution, light assembly related to power conversion systems, and manufacturing battery components. Crooker said the weighted average lease term for these data center-related leases is “a little over eight years,” and that leasing spreads on the 1.6 million square feet were “about 35%,” with “strong credits backing these leases as well.” Addressing underwriting considerations, Crooker said tenants increasingly want more power in their facilities, but characterized the leased assets as “traditional warehouse” buildings being used for different purposes. He described the trend as an incremental demand driver rather than a fundamentally different property type. Same-store cash NOI grew 4.1% in the first quarter, while Pinard said credit loss was minimal. However, management discussed the timing impact of occupancy changes on same-store results. Pinard explained that first-quarter occupancy decline was only partially reflected because “a good portion of the non-renewals occurred near the end of the quarter,” meaning the second quarter is expected to reflect “the full impact of that vacancy.” Pinard said the first-quarter 4.1% same-store cash NOI result included the effect of 60 basis points of average occupancy loss, versus 120 basis points of period-end occupancy loss. Same-store occupancy was 96.6%, which he called “a very healthy level.” Looking ahead, Pinard said STAG expects “the trough occupancy to occur in the second quarter,” with occupancy improving during the second half of 2026. He added that the company’s budgeting still assumes nine to 12 months of lease-up time for vacant assets and reiterated the company’s expectation for average same-store occupancy of 96.5% for the year. On embedded rent growth, Pinard said the weighted-average annual escalator across the portfolio is 2.9%, “almost 3%,” and is expected to rise over time as new leases increasingly include escalators in the 3% to 3.5% range, averaging around 3.25%. Management also maintained its view on market rents. Crooker said STAG’s market rent growth guidance remains 0% to 2%, and while activity has been “a little bit stronger” than initially expected, it is still early in the year and the company has not changed its assumptions. STAG pointed to stable capital markets and improving transaction momentum. Crooker said industrial remains “one of the most liquid asset classes,” and the company’s internal transaction pipeline has grown to $3.9 billion. During February, STAG acquired a 750,000-square-foot newly constructed Class A facility in Platte City, Missouri for $80.7 million, which management said reflected a 6.1% cap rate. Crooker said the building is strategically located in a northwest Kansas City submarket with access to highways and the Kansas City International Airport. The property is 100% leased for 12 years with 3.2% annual rental escalators. On development, Crooker said STAG had seven buildings totaling 1.8 million square feet not yet in service as of quarter end, with an expected stabilized yield of 7.1%. Subsequent to quarter end, the company signed two new development leases: a 73,000-square-foot lease at its Casual Drive development in Greenville, bringing that building to 100% leased, and a 45,000-square-foot lease at a Charlotte development project, bringing that building to 90% leased. Management also discussed a land acquisition announced during the call. Crooker said the company acquired land adjacent to an existing STAG building in Dallas, Texas, large enough for a roughly 340,000-square-foot facility, and expects to start development shortly. He said the transaction will be about $38 million and is expected to generate a 7.4% yield on cost. Chief Investment Officer Mike Chase added that the project is a “committed build to suit,” with a tenant already committed. Chase said investment sales momentum that strengthened in the fourth quarter of 2025 carried into the first quarter of 2026. He attributed increased activity to stability in capital markets and “an increase in confidence from both buyers and sellers,” with more buyers returning to the market and deal flow continuing into the second quarter. Crooker added that bid-ask spreads have tightened and that the industrial transaction market could pick up as the second quarter progresses. He said the $3.9 billion pipeline is comprised of about 70% single-asset transactions and 30% portfolios. On valuations, Crooker said cap rates on individual deals are generally near levels similar to STAG’s recent acquisition pricing, though some trades occur 25 to 50 basis points lower than STAG is willing to pay. He also said portfolios are still commanding a premium, estimating a 25 to 50 basis point “portfolio premium” on private transactions. Pinard said the company is maintaining all guidance for 2026. He noted that as of the call date, 79% of forecasted leasing for 2026 has been addressed “at levels consistent with our initial guidance,” and STAG continues to expect cash leasing spreads of 18% to 20% for the year. Crooker said the company expects national vacancy rates to peak in the coming months, with an inflection point in the back half of 2026. In market-level commentary, Crooker cited San Diego as “a little challenging” for one asset and said Memphis and Pittsburgh are “a little slower.” He pointed to Greenville-Spartanburg and Charlotte as improving markets and identified Houston and Nashville as strong performers, while also noting improving conditions in Midwest big-box distribution markets such as Columbus, Louisville, and Indianapolis. Stag Industrial, Inc is a real estate investment trust (REIT) that specializes in the acquisition, ownership and operation of single-tenant industrial properties throughout the United States. The company's portfolio is focused on free-standing warehouses, distribution centers and light manufacturing facilities designed to meet the logistical needs of a diverse tenant base. By concentrating on properties with straightforward layouts and minimal common-area maintenance, Stag Industrial seeks to deliver stable rental income and attractive risk-adjusted returns for its shareholders. Since its founding in 2010 and initial public offering in 2011, Stag Industrial has pursued a disciplined investment strategy centered on high-quality, well-located assets. The article "Stag Industrial Q1 Earnings Call Highlights" was originally published by MarketBeat.

Image source: The Motley Fool. Wednesday, April 29, 2026 at 10:00 a.m. ET Chief Executive Officer — William Crooker Chief Financial Officer — Matts Pinard Chief Investment Officer — Michael Chase Need a quote from a Motley Fool analyst? Email [email protected] William Crooker: Thank you, Steve. Good morning, everybody, and welcome to the first quarter earnings call for STAG Industrial. We are pleased to have you join us and look forward to discussing the first quarter 2026 results. Q1 industrial leasing velocity and volume were healthy, both market-wide and within STAG's portfolio. Year-over-year absorption continues to improve. Notably, the multiyear weakness in demand for big box product has reversed with vacancy in larger spaces decreasing in many markets. This has not been limited to larger spaces, however, with strong activity in the 150,000 to 250,000 square foot segment of the sector where STAG's portfolio predominantly sits. The market is benefiting from a more recent demand driver tied to the rapid acceleration of data center construction. 3PLs supporting these data center developments have resulted in a new segment of leasing demand for traditional warehouse facilities. Since the beginning of 2025, we have signed 8 leases totaling 1.6 million square feet to data center-related tenants. New supply also remains subdued with approximately 40% of new supply constructed for build-to-suit projects, above historical averages. We continue to expect national vacancy rates to peak in the coming months with an inflection point in the back half of 2026. Capital markets have remained stable to start the year and industrial product remains 1 of the most liquid asset classes. We see momentum in the transaction market with the pipeline growing and transaction volume increasing. Our internal pipeline has increased to $3.9 billion. In February, we acquired a 750,000 square foot building located in Platte City, Missouri for $80.7 million at a reported cap rate of 6.1%. The newly constructed Class A building features 36-foot clear height, ESFR, ample trailer parking and heavy power. Strategically located within a northwest submarket of Kansas City, the building benefits from close access to highways and the Kansas City International Airport. The building is 100% leased for 12 years with 3.2% annual rental escalators. In terms of our development platform, we have 7 buildings or 1.8 million square feet of development activity that is not in service as of the end of Q1. These buildings are in various stages of development and have an expected stabilized yield of 7.1%. Subsequent to quarter end, we have signed two new development leases. We agreed to a 73,000 square-foot lease at our casual drive development in Greenville. That building is now 100% leased. We also executed a lease totaling 45,000 square feet and 1 of our Charlotte development projects. That building is now 90% leased. With that, I will turn it over to Matts who will cover our remaining results and guidance for 2026. Matts Pinard: Thank you, Bill, and good morning, everyone. Core FFO per share was $0.65 for the quarter, an increase of 6.6% as compared to last year. Leverage remains low, with net debt to annualized run rate adjusted EBITDA equal to 5. Liquidity stood at $806 million at quarter end. During the quarter, we commenced 37 leases across 6 million square feet, generating cash and straight-line leasing spreads of 20.9% and 39.6%, respectively. This is a quarterly record in terms of total operating portfolio square feet leased. Tenant demand is strong and in many industries, including air freight and logistics, retail and containers and packaging. Retention for the quarter was 69.5%, we are maintaining our retention guidance of 70% to 80% for the year. As of today, 79% of our forecasted leasing for 2026 has been addressed at levels consistent with our initial guidance and at levels equal to our previous years at this point. We still expect cash leasing spreads of 18% to 20% this year. Same-store cash NOI grew 4.1% for the quarter. Credit loss was minimal for the first quarter as well. At this point, we are maintaining all guidance for the year. 2026 guidance can be found on Page 21 of our supplemental package, which is available within the Investor Relations section of the website. I will now turn it back over to Bill. William Crooker: Thank you, Matts. I want to thank our team for the great start to 2026. SAG has set the foundation of sustainable growth in 2026 and will continue to benefit from a strong balance sheet, ample liquidity and broad market diversification. We will now turn it back to the operator for questions. Operator: [Operator Instructions]. Our first question comes from Craig Mailman with Citigroup. Craig Mailman: Bill, you noted similar to peers that the leasing market is healthier here today. I'm just kind of curious, you guys did maintain retention guidance and quicker backfills on spaces that have come back to you or anything encouraging on that front because I know you guys were a little bit worried about that as a source of occupancy to outside. William Crooker: Yes. Thanks, Craig. Yes, I mean, it's certainly a higher lease expiration year. And that's driving our guidance -- our occupancy guidance for the year. With respect to what we're budgeting, it's still 9 to 12 months of lease-up time for assets when they go vacant. I will say we had good activity in Q4. That has continued in Q1. We had a large amount of square footage leased in Q1, it was 6 million square feet. So activity is really strong. We're seeing it from multiple industries. We're getting a lot of RFPs. It feels really good. But with all that being said, we have not changed our lease-up assumptions at this time. But the momentum from Q4 has continued into Q1 and into Q2. Craig Mailman: And then just a follow-up here. You mentioned, I think, 8 leases, 1.6 million square feet to data center supply tenants. What markets are you seeing that in predominantly? And do you think that this is concentrated in your portfolio or it grows a little bit as just the proliferation of data centers takes hold? William Crooker: Yes, it certainly feels like it's going to continue to grow. I mean South Carolina, we're seeing a lot of it. We had 3 leases in South Carolina, 2 in the Greenville Spartanburg market. Nashville, 1 of our -- the lease we signed in Nashville was a data center-related tenant. And then we saw some in the Midwest in Wisconsin 1 lease there. We had a lease we signed in Ohio and also in Charlotte. So it's really that Southeast Midwest markets is where we're primarily seeing that demand. And that's where a lot of our portfolio is concentrated. So we anticipate further demand from data center-related tenants. Craig Mailman: Not to ask a third one, but like what type of tests are there 3PLs? Or are they equipment manufacturers or servicers, who are you leasing to? William Crooker: Yes. So one was a 3PL to one of the largest 3PLs in the world serving a meta data center contract. We have some tenants that are distributing generators to data centers. We have some light assembly of racking of power conversion systems in one of them, one is manufacturing battery components. So it's a variety of things supporting data center developments and just the operations. And these are long-term leases. I mean the weighted average lease term is a little over 8 years and the leasing spreads we achieved that 1.6 million square feet, was about 35%. So good economics, long-term leases, strong credits backing these leases as well. Operator: The next question comes from Michael Griffin with Evercore. Michael Griffin: I appreciate the commentary on the leasing front. It seems like it's been a good start to the year. I realize you haven't -- you've maintained your guide across the board. But maybe, Bill, if you can give us a sense of updated thoughts on market rent growth expectations. I think at the beginning of the year, it seemed like you were flat to up 2%. Does it feel like we're above the midpoint on that? I realize things can fluctuate around, but any commentary there would be helpful. William Crooker: Yes. I mean, I think this is part of the theme of Q1 calls, especially with us, where we just put out our annual guidance a couple of months ago, we had pretty good insight into where things were trending to start the year. activity is probably a little bit stronger than what we initially thought. But with all that being said, we maintain our guidance really across all components of that. With respect to market rent growth, our guide was 0% to 2%. That will -- that we're going to maintain that guidance as well at this time. That will likely trend higher on a quarterly basis as we move through the year as we see that vacancy rate -- market vacancy rate peak in the coming months. So everything is panning out as we thought a couple of months ago, maybe a little bit more optimism in the portfolio just given the activity we're seeing and the leases we're signing and the discussions we're having with tenants. So -- but it's still early in the year, right? We're 2 months past our original guidance we put out. Michael Griffin: Great. That's helpful. And then maybe for my follow-up, you're at about 80% of your 2026 leasing goal seems pretty good so far. I don't want to put the cart before the horse, obviously. But as you look to maybe 2027. Are you starting to have those conversations? I mean does it feel like as you look even at the year ahead, you're running maybe ahead of where you were relative to expectations? Or anything you can glean on maybe those '27 conversations would be helpful. William Crooker: Yes. I mean, it's a little -- it's obviously a little early for 2017, but we do -- especially for renewals, we start this conversation typically 12 months in advance. So when you look at leasing plan, we're about 25% through that at this point, and that's pretty comparable to the last few years. Operator: The next question comes from Nick Thillman with Baird. Nicholas Thillman: Maybe I wanted to touch a little bit on what you're seeing on the acquisition front. Is there any sort of change in the pool of assets you're looking at? Are you willing to take on increased demand environment? Are you willing to take a little bit more value add? Or is -- I guess, bucket, the development, value-add versus core acquisitions and what you're underwriting today and how that sort of trended over the last 90 days or so? William Crooker: Yes. I'll let Mike jump in terms of kind of what we're seeing broad-based. But with respect to identifying a certain profile of asset and focusing on that I mean we're fortunate enough that we've got the people, the processes in place and the systems in place to underwrite a large amount -- a large number of transactions. So we'll look at everything and depending on what meets our criteria and if we can meet the price, then we'll buy it. So it's not like we're going to shift materially into value-add or materially into long-term stabilized leases. We'll acquire what meets our investment criteria at that time, but we'll look at everything. Just one thing on the, call it, the acquisition side, sourcing side, and then I'll pass over to Mike for more of the broader view is we did yesterday just acquire a piece of land adjacent to one of our buildings in Dallas, Texas. It's about a 3 -- it's a land is large enough to fit about a 340,000 square foot facility. So we're going to start development of that facility shortly. So it was good to put that land under contracted shovel-ready that transaction is going to be about $38 million at a 7.4% yield on cost. So excited to get that going. And that's just an example. When we're looking at a number of development opportunities. We're looking at a number of value-add opportunities, stabilized opportunities, some small portfolios. So it really depends on what meets that investment center. And if I didn't mention that transaction, that PSA Land is in Dallas, Texas. So -- and with that, I'll pass over to Mike to share any more commentary on that. Michael Chase: Sure. And I think another thing just to mention on that piece of land, that's a committed fill-to-suit where we already have it tenant committed for that building on the land that we just bought yesterday. Just looking nationally, it was a strong end of '25. So Q4 came in from an investment sales perspective, came in pretty strong. That's carried over into Q1 of '26. So that stability and momentum in the capital markets has resulted in an increase in confidence from both buyers and sellers in the market. So that also resulted in an uptick of deal flow of more buyers coming to the -- coming off the sidelines and into the market. So there's been good deal flow that we've seen in Q1 and that's continuing into Q2. William Crooker: Yes. I mean you see that in our pipeline to our pipeline is $3.9 billion, about 70% of that is single transactions, 30% portfolios. And just on the seller side, I mean, those Empire side bid-ask spreads pretty tight now. So we expect just the overall industrial transaction market to pick up here as we move through Q2. Michael Griffin: That's helpful. And then, Bill, I know you've mentioned just some of these partnerships you've had with regional developers and sounds like Dallas might be an opportunity that you just locked in here as well. But I guess, longer term, are you thinking about getting a little bit more concentrated now that you're building these relationships with these developers I guess, are you guys being a little bit more submarket focused and looking for a little bit more growth in end markets and underwriting that. I guess more commentary there would be helpful because it's something that we've talked about in the past. William Crooker: Yes. So just backing up on the piece of land we bought, that was sourced by us. We had a tenant in our portfolio that's on an adjacent site that wanted to do a build-to-suit. So we were able to source the land, and go through all the approval process. So that was done on balance sheet. That's not being partnered with anybody. With all of our developments, we look at the submarkets and make sure that those buildings fit the submarkets I mean these buildings that we're putting up meet the teeth of the demand in these markets. So that's first and foremost. We appreciate the partnerships we have with our development partners. We want to grow those. We're trying to grow those. In some respects, we are growing those. And there's also some opportunities to expand partnerships with new partners. So all that's on the table. If you were to ask what's our best use of capital today is probably on the development side. I mean, just as one in Dallas, it's a 7.4% yield. So that's our best use of capital is harder to acquire that land and takes longer to develop it. but we like the opportunity, and we'll do it either on balance sheet or with existing partners or with new partners. Operator: Next question comes from Jason Belcher with Wells Fargo. Jason Belcher: I guess, first, Q1 same-store was pretty solid at 4.1%. The guidance was unchanged at 3, suggesting somewhat of a possible slowdown. Can you talk about how you expect that to take shape or how we should be thinking about the cadence of that metric for the rest of the year? Matts Pinard: Yes.So cash same-store of 4.1% in the first quarter is very healthy. But really what we know is talk about the economic impact to occupancy decline. In the first quarter, occupancy decline was only partially reflected in the same-store number, meaning a good portion of the nonrenewals occurred near the end of the quarter. So basically, the second quarter is going to reflect the full impact of that vacancy. So put it a different way, the 4.1% includes impact of the 60 basis points of average occupancy loss, not 120 basis points of actual occupancy loss of period end. So all of that's related to the first quarter. So the 4.1% does not account for the fact that this space is vacant for the entire quarter. But the first quarter cash same-store was fully anticipated. It was included in our guidance. As you said, we continue to expect cash sales or growth of 3% at the midpoint. So no change in the guidance. This was expected. It really comes down to the impact of occupancy over a full period. Jason Belcher: Great. And then secondly, could you just give us an update on where your embedded rent increases are trending for newly signed leases and also remind us what the average escalator is across the portfolio is at this point. Matts Pinard: Yes, absolutely. The weighted average escalator across the portfolio is 2.9%, almost 3%, and that's going to increase every quarter because every lease that we're kind of coming across our desk starts with anywhere in the 3% to 3.5% range, call it, 3.25 on average of the leases that we are signing. So again, just mathematically, that 2.9% will continue to increase. Operator: The next question comes from Eric Borden with BMO. Eric Borden: Matts, you just touched on this a little bit about the same-store, but just on the occupancy front, you started off the year with positive leasing, but had a few known move-outs in the back end of the quarter. how should we be thinking about the quarterly occupancy cadence just for the balance of '26, and as we look to the rest of the year, should we expect any additional known move-outs? Matts Pinard: Yes, exactly. So with the no move outs, we didn't change our guidance. We're at 75% at the midpoint retention, which is basically spot on what we've averaged as a public company and what you can see from any other institutional quality industrial portfolio. But the same store being 60 basis points of average occupancy loss and 120 basis points of period-end occupancy loss. So that resulted in 96.6% occupancy in the same store. And I just want to pause you, that's a very healthy level. As Bill mentioned, our budgets assume 9 to 12 months of lease-up. So space that rolls vacant in our budget lease-up next year, not this year. If we think about the cadence, we expect the trough occupancy to occur in the second quarter with occupancy increasing during the second half of the year. And that basically squares with our view that at the end of this year, we're going to start to see equilibrium in market rent growth acceleration. Again, the change in Oxy's fully anticipated, we had messaged it. It's included in our initial guidance. We continue to expect average occupancy in the same-store pool to be 96.5% with no change to our guidance. Eric Borden: Great. And then just going back to the increasing data center demand, how are you guys thinking about underwriting that tenant base in terms of power availability, building specs CapEx needs and credit duration just versus your traditional warehouse timing? William Crooker: I mean, one of the themes we're seeing across a lot of tenants is they want more power, right? And whether that's today or in 5 years in their lease term, maybe because they plan to automate their facility more or whatnot. But power is certainly something tenants are looking for. with respect to the spaces that we lease to the data center tenants, I mean, some of them had excess power and some did not. So it's your traditional warehouse that is just being used for a different use. It's the same example of we've had warehouses that were regional distribution centers that second tenant was a light assembly tenant and then the third tenant was warehousing, right? So these are can be used for multiple uses. We're just seeing an incremental demand driver from data center peers. Operator: The next question comes from Jessica Zheng with Green Street. Jessica Zheng: Just following up on the data center piece. So for the construction tenants that sized the longer-term basis, do you know if they're surveying like multiple data centers in the area? And if not, do you know if they will be servicing the data centers operations after the construction completes Yes, I'm just curious about the kind of the sustainability of this new tailwind here? William Crooker: Yes. So some of them are servicing the data centers that are already complete, and it's just servicing their ongoing operations. Some are servicing the development of it. and some are servicing multiple data centers and some are servicing just one data center. But where these warehouses are located. There's multiple demand drivers within those markets. I mean, we have at least two of these data center leases in the Greenville Spartanburg market, and we spoke about that market many times. It's one of our top markets, and there's consumption in that market for warehousing and local distribution. There's regional distribution related to the inland port. There's now data center demand there. There's the BMW plant that creates a lot of demand there. So these are functional buildings that can meet many of the demand drivers is just this incremental demand driver of data centers. Jessica Zheng: Okay. And then additionally, I was wondering if you could just kind of walk through your other markets and kind of highlight the ones with relative strengths and weaknesses right now? William Crooker: Yes. I mean if you look at kind of markets that are a little weaker, it's -- we have one asset in San Diego that's proving to be a little challenging now Memphis is a little slower, Pittsburgh a little slower. Let's say, our markets that have probably been improving the most, the Greenville Spartanburg and Charlotte. And then if you want to move a little further to our best markets, Houston has been a great market. Nashville -- and the Midwest big-box distribution markets have really started to perform extremely well. I mean that's a trend we're also seeing is big box leasing has been strong, and a lot of these markets are -- have very low vacancy rates for big box distribution. So that's your Columbus, our Louisville, your Indies. Operator: Next question comes from Henry Newell with RBC Capital Markets. Unknown Analyst: Just wondering about where you're seeing underlying private market valuation trends in your specific markets and if you're seeing them being impacted by really what's going on macroeconomically or geopolitically at the moment? William Crooker: Yes. I mean depending on the transaction, whether it's a -- I assume you're talking cap rates just to clarify the question? Unknown Analyst: Yes. William Crooker: Yes. So I mean, individual transactions, I mean, we just bought one transaction in Q1. We're close to putting a couple of others under LOI. I mean those are transaction transacting at and around where we're buying assets, right? Sometimes 25 basis points or 50 basis points inside of that, and that's why we don't win the deal, right? So they're trading at are a little bit lower than what we're willing to pay. And then portfolios because there's a lot of capital still chasing this asset class. We're still seeing a slight premium for portfolio. So anywhere from a 25 to 50 basis point portfolio premium on private transactions. Operator: At this time, I would like to turn the floor back to Mr. Crooker for closing comments. William Crooker: Thanks, everybody, for participating in the call. We appreciate the questions and look forward to seeing you all soon. Thank you. Operator: You may disconnect your lines at this time. Thank you for your participation, and have a great day. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Stag Industrial. The Motley Fool has a disclosure policy. Stag (STAG) Q1 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Core FFO per Share: $0.65, an increase of 6.6% compared to last year. Net Debt to Annualized Run Rate Adjusted EBITDA: 5. Liquidity: $806 million at quarter end. Leases Commenced: 37 leases across 6 million square feet. Cash Leasing Spreads: 20.9%. Straight-Line Leasing Spreads: 39.6%. Retention Rate: 69.5% for the quarter. Same-Store Cash NOI Growth: 4.1% for the quarter. Acquisition: 750,000 square foot building in Platte City, Missouri for $80.7 million at a cap rate of 6.1%. Development Activity: 1.8 million square feet with an expected stabilized yield of 7.1%. Warning! GuruFocus has detected 8 Warning Signs with STAG. Is STAG fairly valued? Test your thesis with our free DCF calculator. Release Date: April 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Stag Industrial Inc (NYSE:STAG) reported a healthy industrial leasing velocity and volume, with year-over-year absorption continuing to improve. The company signed 8 leases totaling 1.6 million square feet to data center-related tenants, indicating a new segment of leasing demand. Core FFO per share increased by 6.6% compared to last year, reaching $0.65 for the quarter. Liquidity stood at $806 million at quarter end, providing a strong financial position. The company maintained its retention guidance of 70% to 80% for the year, with 79% of forecasted leasing for 2026 already addressed. The company is facing a higher lease expiration year, which is driving occupancy guidance. Despite strong leasing activity, the company has not changed its lease-up assumptions, maintaining a 9 to 12 months lease-up time for vacant assets. Same-store cash NOI growth was 4.1% for the quarter, but the company expects a slowdown with guidance at 3% for the year. Occupancy is expected to trough in the second quarter, reflecting the full impact of vacancy from nonrenewals. Some markets, such as San Diego, Memphis, and Pittsburgh, are experiencing slower performance compared to others. Q: Bill, you noted that the leasing market is healthier today. Are you seeing quicker backfills on spaces that have come back to you? A: Yes, it's a higher lease expiration year, which drives our occupancy guidance. We're still budgeting 9 to 12 months of lease-up time for vacant assets. Activity has been strong, with 6 million square feet leased in Q1. However, we haven't changed our lease-up assumptions yet. Q: You mentioned 8 leases totaling 1.6 million square feet to data center supply tenants. What markets are you seeing this in predominantly? A: We're seeing this demand primarily in the Southeast and Midwest markets, including South Carolina, Nashville, Wisconsin, Ohio, and Charlotte. We anticipate further demand from data center-related tenants in these areas. Q: Can you provide an update on market rent growth expectations? A: Our guidance remains at 0% to 2% for market rent growth. While activity is stronger than initially thought, we maintain our guidance. We expect this to trend higher as the year progresses and vacancy rates peak. Q: How are you approaching acquisitions in the current market? A: We look at a variety of opportunities, including development, value-add, and core acquisitions. We recently acquired land in Dallas for a build-to-suit project. Our pipeline is $3.9 billion, with 70% single transactions and 30% portfolios. Q: How do you expect quarterly occupancy cadence for the rest of 2026? A: We expect trough occupancy in Q2, with increases in the second half of the year. Our guidance anticipates average occupancy in the same-store pool to be 96.5%, with no changes to our guidance. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Management observed a reversal in the multiyear weakness for big box product, with vacancy in larger spaces decreasing across many markets. A new segment of leasing demand has emerged from 3PLs and manufacturers supporting the rapid acceleration of data center construction and operations. The company signed 8 data center-related leases totaling 1.6 million square feet since early 2025, achieving 35% leasing spreads and 8-year average terms. New supply remains subdued with approximately 40% of new construction tied to build-to-suit projects, which is above historical averages. Acquisition activity is accelerating with an internal pipeline that has grown to $3.9 billion, comprised of 70% single transactions and 30% portfolios. The company acquired a 750,000 square foot Class A building in Kansas City for $80.7 million, featuring 3.2% annual rental escalators and a 12-year lease. Management expects national vacancy rates to peak in the coming months with a market inflection point occurring in the second half of 2026. Guidance assumes a 9 to 12-month lease-up period for vacant assets, with space rolling vacant in 2026 expected to lease up in 2027. Trough occupancy is projected to occur in the second quarter of 2026, with occupancy expected to increase during the back half of the year. Market rent growth guidance is maintained at 0% to 2%, though management anticipates this may trend higher as market vacancy peaks. The company plans to start development on a 340,000 square foot build-to-suit facility in Dallas with an expected 7.4% yield on cost. The company achieved a quarterly record for total operating portfolio square feet leased, commencing 37 leases across 6 million square feet. Retention for the quarter was 69.5%, slightly below the annual guidance range of 70% to 80% due to the timing of lease expirations. Weighted average rental escalators across the portfolio reached 2.9%, with new leases typically starting between 3% and 3.5%. Management identified San Diego, Memphis, and Pittsburgh as currently weaker markets, while Houston, Nashville, and the Midwest are performing strongly. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Tenants include major 3PLs serving meta data center contracts, generator distributors, and manufacturers of battery components and power systems. Demand is concentrated in Southeast and Midwest markets like South Carolina, Nashville, and Charlotte where STAG has significant holdings. Management views this as a long-term tailwind because these functional warehouses can service both ongoing operations and new developments. The 4.1% growth in same-store cash NOI for Q1 only partially reflected occupancy declines as several non-renewals occurred near the end of the quarter. The 4.1% same-store cash NOI growth includes the impact of 60 basis points of average occupancy loss, while the full impact of the period-end occupancy loss will be reflected in the second quarter results. Management maintained the full-year same-store cash NOI growth guidance of 3% at the midpoint. Bid-ask spreads have tightened significantly, leading to increased confidence from both buyers and sellers in the transaction market. Portfolios continue to command a 25 to 50 basis point cap rate premium over single-asset transactions due to high capital demand. STAG is finding its best use of capital in development, where yields are approximately 7.4% compared to lower yields for stabilized acquisitions. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.