STAG Industrial Reports 9.4% Revenue Growth in Q2 2025, Net Income Declines

STAG Industrial, Inc. reported its financial results for the second quarter and first half of 2025, showing a total revenue of $207.6 million for the three months ended June 30, 2025, an increase of 9.4% from $189.8 million in the same period last year. For the first half of 2025, total revenue reached $413.2 million, up 9.5% from $377.3 million in the first half of 2024. The company's net income for the second quarter was $51.1 million, a decrease of 16.4% compared to $61.1 million in the prior year, while net income for the first half increased significantly by 46.6% to $144.4 million from $98.5 million.

The company experienced notable changes in its operational metrics, with rental income for the second quarter rising to $207.4 million, up from $186.5 million a year earlier. The increase was attributed to new leases and renewals, which contributed approximately $8.4 million to rental income. However, the company also faced challenges, including a decrease in same-store occupancy from 98.1% to 97.4% year-over-year. The total number of buildings owned by STAG Industrial remained stable at 600 across 41 states, with approximately 118.3 million rentable square feet.

In terms of strategic developments, STAG Industrial made several acquisitions during the first half of 2025, totaling four buildings with a combined purchase price of $67.2 million. The company also sold two buildings for net proceeds of approximately $72.6 million, realizing a gain of $55.6 million on the sales. These transactions reflect the company's ongoing strategy to optimize its portfolio and enhance its operational efficiency. Additionally, STAG Industrial formed a joint venture for the development of an industrial property in Shepherdsville, Kentucky, further expanding its footprint in the industrial real estate market.

Financially, STAG Industrial's total liabilities as of June 30, 2025, stood at $3.3 billion, with total stockholders' equity at $3.5 billion. The company reported a decrease in cash and cash equivalents to $15.4 million from $36.3 million at the end of 2024. The company’s debt structure includes $51 million in unsecured credit facilities and $1.975 billion in unsecured notes, with a weighted average interest rate of 4.24%. The company remains in compliance with all financial covenants related to its debt.

Looking ahead, STAG Industrial anticipates that macroeconomic conditions, including interest rates and inflation, will continue to influence its operations. The company is focused on maintaining high occupancy rates and competitive rental rates while managing its capital structure effectively. Despite the current economic uncertainties, STAG Industrial believes that its diversified portfolio and strategic initiatives position it well for future growth.