STAG Industrial Reports Strong Performance and Growth for 2024 Fiscal Year
STAG Industrial Reports Strong Performance and Growth for 2024 Fiscal Year
STAG Industrial, Inc. (NYSE: STAG) announced its promising financial and operational performances for the fourth quarter and the complete year ending December 31, 2024. With an evident upward trajectory in acquisition activities and robust operational results, the company’s outlook for 2025 appears encouraging.
Key Financial Highlights
In the fourth quarter of 2024, STAG reported:
- - A net income of $50.9 million, translating to $0.28 per basic and diluted common share, marking an increase from $41.7 million or $0.23 per share in Q4 2023.
- - A significant rise in Core Funds From Operations (Core FFO), reaching $0.61 per diluted share, a growth of 5.2% from $0.58 in the previous year quarter.
- - Cash Net Operating Income (NOI) amounted to $155.5 million in Q4 2024, an increase of 8.6% compared to the same period in 2023.
For the entirety of 2024, the company achieved:
- - Total net income attributable to common stockholders of $189.0 million, roughly paralleling the $192.6 million recorded in 2023.
- - An annual Core FFO of $2.40 per diluted share, reflecting a 4.8% growth from $2.29 in 2023.
Strategic Growth through Acquisitions
During the fourth quarter, STAG Industrial expanded its portfolio by acquiring 15 buildings covering 2.4 million square feet at a cost of $293.7 million. This strategic move resulted in a cash capitalization rate of 6.2%. The company also secured a vacant land parcel for $8.9 million. The acquisitions significantly contributed to the overall portfolio occupancy rate, which showed a healthy figure of 96.5%.
The company sold two buildings during the fourth quarter, amounting to 366,599 square feet for approximately $29.4 million, showcasing an effective asset management strategy.
Leasing Activity and Retention Rates
Leasing operations continued to thrive with new leases covering 2.4 million square feet. The fourth-quarter cash rent change reached an impressive 19.4%, with a straight-line rent change of 34.9%. The company experienced a 76.9% retention rate for leases expiring in that period, underscoring its strong tenant relationships.
Production Projections
Looking ahead, STAG has set the bar high for 2025, addressing 70.2% of expected new and renewal leasing covering 9.7 million square feet, with a projected cash rent change of 23.8%. As of February 11, 2025, these metrics indicate a well-prepared strategy to maintain its growth momentum.
Financial Calls and Transparency
To discuss the fourth quarter results in greater detail, STAG Industrial will host a conference call on February 13, 2025. Investors and interested parties are encouraged to dial in or access the session via webcast. This openness reflects the company’s commitment to maintaining transparency and engaging with its stakeholders.
Conclusion
STAG Industrial’s financial achievements for 2024 signal a period of resilience and growth, particularly within its acquisition strategy and effective asset management. As the company embraces 2025, it remains poised to enhance its productivity and capitalize on new opportunities, further solidifying its standing in the industrial real estate market.
Topics Financial Services & Investing）
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