STAG Industrial Reports 149.3% Increase in Net Income for Q1 2025

STAG Industrial, Inc. reported significant financial performance for the first quarter of 2025, with net income attributable to common stockholders reaching $93.4 million, a substantial increase of 149.3% compared to $37.5 million in the same period of 2024. The company’s total operating revenue also rose by 9.6% to $205.4 million, driven by a 3.4% increase in same-store rental income, which amounted to $186.9 million. This growth was attributed to new leases and renewals totaling approximately $9 million, although it was partially offset by a reduction in base rent due to tenant vacancies.

In terms of operational developments, STAG Industrial made notable acquisitions during the quarter, purchasing three buildings totaling 393,564 square feet for a combined price of $43.3 million. The company also disposed of one building, generating net proceeds of approximately $63.8 million and realizing a gain of $49.9 million on the sale. As of March 31, 2025, the company’s rental property portfolio was valued at $6.5 billion, reflecting a slight increase from $6.5 billion at the end of 2024. The company maintained a diversified tenant base, with its top 20 tenants accounting for 16.4% of total annualized base rental revenue.

STAG Industrial's financial position remained strong, with total indebtedness of approximately $3.03 billion as of March 31, 2025, and a weighted average interest rate of 4.13%. The company reported compliance with all financial covenants related to its debt arrangements. Notably, the company redeemed $100 million of unsecured notes during the quarter, which contributed to an increase in cash used in financing activities to $68 million, up from $37.7 million in the prior year.

Looking ahead, STAG Industrial expressed cautious optimism regarding its operational outlook amid ongoing economic uncertainties, including rising interest rates and geopolitical tensions. The company anticipates that its diversified portfolio will continue to support strong occupancy rates and competitive rental rates. However, it acknowledged potential challenges, including increased vacancy rates and credit risks associated with tenant bankruptcies, particularly referencing American Tire Distributors, which filed for reorganization under Chapter 11 but remains current on its rent obligations.

Overall, STAG Industrial's first-quarter results reflect a robust performance driven by strategic acquisitions and effective management of its rental portfolio, positioning the company to navigate the complexities of the current economic landscape while maintaining a focus on growth and stability.