Standardization of Key Metrics Among Industrial Real Estate Investment Trusts

On April 1, 2025, STAG Industrial, Inc. announced a significant development in the industrial real estate sector. The company has established a coalition with other key players, including EastGroup Properties, Inc., First Industrial Realty Trust, Inc., and Prologis, Inc., collectively known as the Industrial REIT Group. This collaboration focuses on the standardization of key property metrics to bolster comparability across the sector.

This initiative builds upon prior efforts to harmonize property management metrics, initiated back in 2018. By reaffirming its strategies for measuring property stabilization, occupancy rates, rental changes, and customer retention, the Industrial REIT Group underscores its commitment to transparency and consistency in reporting. In particular, the annual same-store portfolio will strictly include properties that have been stabilized in both the current and previous periods under review. Furthermore, properties identified for value-add or redevelopment will be excluded from the same-store portfolio, ensuring that metrics are reflective of actual operational performance.

Each member of the Industrial REIT Group will align their non-GAAP metrics with these standardized methodologies during metric disclosures. This means that the new approaches will be incorporated into STAG Industrial's future guidance metrics, without expected material effects on the metrics for periods prior to 2025.

Though minor variations in terminology or calculation methods may persist, the overarching goal remains clear: to enhance consistency across the industry. This move marks a significant step toward creating a reliable framework for investors and stakeholders, who rely on accurate data to make informed decisions about their real estate investments.

The Importance of Standardized Metrics

Standardized key property metrics play a vital role in ensuring that investors have access to comparable information when analyzing different investment opportunities within industrial real estate. Without uniform measures, it can be challenging to assess operational efficiency, performance, or even the potential return on investment across different companies and properties. By standardizing metrics, the Industrial REIT Group sets a precedent that could enhance investor confidence and engagement in this niche market.

About the Members of the Coalition

As a leading player in the industrial real estate sector, STAG Industrial, Inc. operates a vast portfolio that spans across 41 states in the United States, comprising 591 buildings and nearly 116.6 million rentable square feet by the end of 2024. The coalition members come from various backgrounds, all focusing on the acquisition, ownership, and management of industrial properties. The collaboration not only strengthens sector unity but also enhances the competitive edge of the involved companies in attracting both domestic and international investors.

Moving Forward

As this initiative unfolds, stakeholders can anticipate a clearer understanding of the industrial real estate landscape, driven by improved data and consistency across reporting frameworks. The Industrial REIT Group’s commitment not only marks a pivotal moment for company-led standardization but also sets an example for future collaborations in other sectors of real estate.

In conclusion, the Industrial REIT Group's efforts to standardize key property metrics signifies a turning point in the real estate investment trust sector. It paves the way for better comparability, transparency, and ultimately, trust among investors seeking to navigate the complexities of industrial real estate investments effectively.