#USA #Boston #Financial Growth #STAG Industrial #Q1 Results

STAG Industrial Reports Impressive First Quarter 2025 Results

STAG Industrial, Inc. (NYSE: STAG), a real estate investment trust focused on acquiring and operating industrial properties in the United States, has released its financial results for the first quarter of 2025, unveiling a remarkable performance that sets a solid foundation for the future. The company's portfolio showcases significant growth metrics that underline its strategic initiatives and operational efficiency.

Financial Highlights

For the first quarter ended March 31, 2025, STAG reported an outstanding net income attributable to common stockholders of $91.3 million, equivalent to $0.49 per basic and diluted common share. This marks a striking increase from $36.6 million or $0.20 per share in the same quarter of the previous year, reflecting a considerable year-over-year growth of 149.7%.

Additionally, the company achieved a Core Funds from Operations (Core FFO) of $0.61 per diluted share, up 3.4% compared to $0.59 from Q1 2024. Cash NOI increased by 8.1%, rising from $145.5 million in the prior year to $157.2 million in the latest quarter. Furthermore, the Same Store Cash NOI also saw an upswing, growing to $144.6 million from $139.9 million year-over-year.

Strategic Acquisitions and Dispositions

Continuing its growth trajectory, STAG made strategic investments, acquiring three buildings totaling 393,564 square feet for $43.3 million during the first quarter. These acquisitions not only bolster STAG's portfolio but also offer a healthy Cash Capitalization Rate of 6.8%. The company successfully sold one building, generating $67.0 million in revenue, leading to a net gain of nearly $50 million.

The operational efficiency is evidenced by an impressive occupancy rate of 95.9% across the entire portfolio, with an even higher 96.8% in the operating segment. STAG's leasing activity remained robust, with approximately 5.0 million square feet activated during the quarter, achieving notable cash rent increases of 27.3% and straight-line rent increases of 42.1%.

Outlook for 2025

Bill Crooker, President and CEO of STAG, expressed optimism regarding future growth, noting, "The level of operational success the Company achieved to start 2025 was impressive. STAG has set the foundation for sustainable growth in 2025 and will continue to benefit from a strong balance sheet, ample liquidity, and broad market diversification." As per reports, as of April 28, 2025, approximately 78.5% of the expected 2025 new and renewal leasing has been addressed, covering 11.3 million square feet, with favorable cash rent change trends of 25.1%.

Conclusion

STAG Industrial’s first quarter results for 2025 highlight the company’s effective operational execution and strategic portfolio management. As the industrial real estate market continues to evolve, STAG stands poised to capitalize on its strengths, driving sustainable growth through disciplined acquisitions, robust leasing activity, and efficient operational practices. Investors and stakeholders will eagerly await further insights during the upcoming conference call scheduled for April 30, 2025.