STAG Industrial (STAG) Q3 2024 earnings summary

Executive summary

• Net income per share was $0.23 for Q3 2024, down from $0.28 in Q3 2023, with net income attributable to common stockholders of $41.8 million, a 16.4% decrease year-over-year.

• Core FFO per diluted share rose 1.7% to $0.60; Cash NOI increased 5.5% to $148.4 million; Same Store Cash NOI grew 4.4% to $138.2 million.

• Portfolio occupancy was 97.1% overall and 97.8% for the operating portfolio as of September 30, 2024.

• Acquired six buildings for $113 million in Q3, with cash cap rates of 6.7%; sold one building for $22.6 million.

• Addressed 99.5% of 2024 leasing and 37.8% of 2025 leasing, with strong cash rent change metrics.

Financial highlights

• Net income attributable to common stockholders was $41.8 million for Q3 2024, down from $50.0 million in Q3 2023.

• Core FFO per diluted share was $0.60, up 1.7% from Q3 2023; Cash NOI was $148.4 million, up 5.5%.

• Adjusted EBITDAre was $138.7 million, up 5.9% year-over-year; Cash Available for Distribution was $88.0 million.

• Same Store Cash NOI increased 4.4% to $138.2 million; Q3 2024 revenue was $190.7 million, up 6.4% year-over-year.

• Gross proceeds of $93.1 million raised via ATM equity offering on a forward basis.

Outlook and guidance

• 2024 Core FFO per share guidance is $2.38–$2.40; acquisition volume expected at $500–$700 million.

• Same Store Cash NOI change expected at 5.25–5.50%; retention rate guidance is 75%; cash rent change guidance is 27.5–30.0%.

• Net Debt to Annualized Run Rate Adjusted EBITDAre expected at 5.00x–5.50x.

• Management expects internal growth, acquisitions, and developments to drive strong Core FFO growth.

• Increased annual same store cash NOI guidance to 5.25%-5.5%, up 12.5 bps at midpoint.