Key Highlights

  • Core FFO was $0.66 per diluted share versus $0.65, and EPS was $0.37 versus $0.26.
  • Total revenue was $231.0 million, up 9.4% from $211.1 million.
  • Cash rent change on Operating Portfolio leasing was 23.8%, with retention of 90.3%.
  • Same Store Cash NOI rose 3.5% to $159.9 million.
  • A new repurchase authorization of up to $250 million has no expiration date.

STAG Industrial Earnings: What Does a New $250 Million Buyback Say About Core FFO Growth?

STAG Industrial (NYSE:STAG) reported third-quarter results on Tuesday, October 27, with Core FFO of $0.66 per diluted share, up 1.5% from $0.65. EPS was $0.37, up 42.3% from $0.26 and above the $0.29 estimate as screened. Revenue rose 9.4% to $231.0 million from $211.1 million.

The company also announced a repurchase authorization of up to $250 million, with no expiration date and no obligation to buy. By itself it shows only that the board has added a capital allocation option, since the company also sold forward equity in the quarter.

STAG owns and operates single-tenant industrial properties across the United States. The release did not restate numeric guidance ranges, and the chief executive said the company expects another strong operational year while keeping a healthy balance sheet.

Leasing and Rent Growth: How Strong Was Operating Performance?

Operating Portfolio leasing produced a cash rent change of 23.8% and a straight-line rent change of 35.7%. Retention was 90.3% on 2.9 million square feet of expirations, and 3.6 million square feet of leases commenced. Over nine months, cash rent change was 21.2% and renewal retention 75.8%.

Same Store Cash NOI rose 3.5% to $159.9 million, and nine-month Same Store Cash NOI rose 3.9% to $476.5 million. Occupancy was 95.9% for the total portfolio and 96.2% for the Operating Portfolio at September 30. Net income attributable to common stockholders was $70.7 million, and adjusted EBITDAre was $168.0 million.

Management credited the quarter to leasing and development progress from the first half, supported by improving industrial fundamentals. Nine-month Core FFO was $1.96 per share against $1.89.

Acquisitions, Dispositions and Funding: How Is Growth Being Financed?

In the quarter STAG bought two buildings totaling 1.1 million square feet for $107.9 million at a 6.9% cash cap rate. Year to date it has acquired 10 buildings, 4.5 million square feet, for $475.8 million at a 6.3% weighted average cash cap rate. After quarter end it added one building of 710,400 square feet for $55.0 million, and the pipeline stands at 138 buildings, 34.7 million square feet and $4.0 billion.

Dispositions were four buildings for $67.9 million in the quarter and seven buildings for $121.1 million year to date. Forward equity sales in the quarter were 1.4 million shares at an average $39.10, or $54.3 million. Year to date through October 26, sales were 3.4 million shares at $39.00, or $131.3 million, with $70 million of net proceeds unsettled.

Net debt to annualized run rate adjusted EBITDAre was 5.1 times and liquidity $546.0 million. S&P Global Ratings holds a stable BBB rating. A refinanced $350 million combined term loan now matures on January 16, 2032, and the term loans due in March 2027 were refinanced.

Dividend and What to Watch Next: Will Spreads and the Buyback Shape Fourth-Quarter Results?

The fourth-quarter dividend is $0.3875 per share, an annualized $1.55 (calculated), payable January 15, 2027 to holders of record on December 31. Watch fourth-quarter leasing spreads, any repurchase activity under the new authorization, conversion of the $4.0 billion pipeline, and whether the company issues numeric 2027 guidance with its year-end results.