STAG Industrial Reports Strong Financial Results for the Second Quarter of 2025

STAG Industrial Announces Strong Performance in Q2 2025

STAG Industrial, Inc. has officially released its financial results for the second quarter of 2025, marking a period of solid performance that reflects the company’s strategic focus and operational excellence. According to Bill Crooker, the President and Chief Executive Officer, the first half of the year has set a robust foundation for continued success moving forward.

Financial Highlights

The Company reported a net income of $49.9 million for Q2 2025, which translates to $0.27 per basic and diluted share. While this reflects a decrease from $0.33 per share in Q2 2024, the overall net income attributable to common stockholders for 2025 was substantially stronger compared to the previous year's corresponding period, highlighting an increase of 46.7% year-to-date.

A key metric closely watched in the real estate sector is Funds From Operations (FFO). STAG Industrial announced a Core FFO of $120.5 million for the quarter, achieving $0.63 per diluted share, a 3.3% increase from the same quarter last year. This growth is a testament to the company's consistent rental income and efficient operations.

In terms of cash generated, the company reported a Cash NOI of $161.7 million for Q2, up by 8.9% from the previous year, which aligns with STAG’s performance-driven culture aimed at boosting profitability.

Strategic Acquisitions and Developments

The quarter also saw STAG Industrial acquiring a building in Chicago, Illinois, measuring 183,200 square feet for $18.4 million, with a noteworthy cash capitalization rate of 7.1%. This acquisition is expected to enhance the company's portfolio, reinforcing its commitment to growth and expansion.

Additionally, STAG divested a building in Q2, realizing $9.1 million from a 151,200 square-foot property. Such strategic transactions demonstrate STAG's agility in managing its assets effectively while optimizing returns for shareholders.

Occupancy and Leases

Occupancy rates remained robust, with an impressive 96.3% across the total portfolio and 97.0% in the operational portfolio. This high occupancy rate is indicative of STAG Industrial's ability to attract and retain tenants in a competitive market.

The company entered into new leases covering an expansive area of 4.2 million square feet. This leasing activity culminated in a Cash Rent Change of 24.6% and a Straight-Line Rent Change of 41.1%, showcasing STAG's effective leasing strategies and deepening revenue streams.

Retention rates have also shown positive performance, with 75.3% retention for leases expiring in the quarter, further solidifying STAG’s reputation as a reliable partner in the industry.

Credit Rating and Conference Call

STAG Industrial's credit standing received a considerable boost, with Moody's Investor Services upgrading the company's corporate credit rating to Baa2, an improvement from Baa3, highlighting the company's progressive financial health and stability.

A conference call is scheduled for July 30, 2025, at 10:00 a.m. (Eastern Time) where executive management will provide further insights into the quarter's results and ongoing strategies in acquisitions, operations, and capital markets initiatives.

Investors interested in following STAG Industrial’s future endeavors can tune into the live call, details of which are available on the company's website.

Conclusion

Overall, STAG Industrial's strong financial results for the second quarter of 2025 reflect a well-executed operational plan, strategic asset management, and a commitment to delivering value to its stakeholders. As the company navigates the remainder of the year, it appears well-positioned to capitalize on growth opportunities in the real estate sector.