STAG INDUSTRIAL ANNOUNCES SECOND QUARTER 2025 RESULTS

, /PRNewswire/ -- STAG Industrial, Inc. (the "Company") (NYSE:STAG), today announced its financial and operating results for the quarter ended June 30, 2025. "The Company has done an excellent job executing our operating plan in the first half of 2025," said Bill Crooker, President and Chief Executive Officer of the Company. "This strong first half of 2025 sets us up well for the remainder of the year." Second Quarter 2025 Highlights Reported $0.27 of net income per basic and diluted common share for the second quarter of 2025, compared to $0.33 of net income per basic and diluted common share for the second quarter of 2024. Reported $50.0 million of net income attributable to common stockholders for the second quarter of 2025, compared to net income attributable to common stockholders of $59.7 million for the second quarter of 2024. Achieved $0.63 of Core FFO per diluted share for the second quarter of 2025, an increase of 3.3% compared to the second quarter of 2024 Core FFO per diluted share of $0.61. Produced Cash NOI of $161.7 million for the second quarter of 2025, an increase of 8.9% compared to the second quarter of 2024 of $148.4 million. Produced Same Store Cash NOI of $145.3 million for the second quarter of 2025, an increase of 3.0% compared to the second quarter of 2024 of $141.0 million. Produced Cash Available for Distribution of $98.8 million for the second quarter of 2025, an increase of 3.9% compared to the second quarter of 2024 of $95.1 million. Acquired one building in the second quarter of 2025, consisting of 183,200 square feet, for $18.4 million, with a Cash Capitalization Rate of 7.1%. Sold one building in the second quarter of 2025, consisting of 151,200 square feet, for $9.1 million. Achieved an Occupancy Rate of 96.3% on the total portfolio and 97.0% on the Operating Portfolio as of June 30, 2025. Commenced Operating Portfolio leases of 4.2 million square feet for the second quarter of 2025, resulting in a Cash Rent Change and Straight-Line Rent Change of 24.6% and 41.1%, respectively. Experienced 75.3% Retention for 3.5 million square feet of leases expiring in the quarter. On May 8, 2025, Moody's Investor Services raised the Company's corporate credit rating to Baa2 with a stable outlook from Baa3 with a positive outlook. As of July 28, 2025, addressed 90.8% of expected 2025 new and renewal leasing, consisting of 13.3 million square feet, achieving Cash Rent Change of 24.5%. Please refer to the Non-GAAP Financial Measures and Other Definitions section at the end of this release for definitions of capitalized terms used in this release. The Company will host a conference call tomorrow, Wednesday, July 30, 2025 at 10:00 a.m. (Eastern Time), to discuss the quarter's results and provide information about acquisitions, operations, capital markets and corporate activities. Details of the call can be found at the end of this release. Key Financial Measures SECOND QUARTER 2025 KEY FINANCIAL MEASURES Three months ended June 30, Six months ended June 30, Metrics 2025 2024 % Change 2025 2024 % Change (in $000s, except per share data) Net income attributable to common stockholders $49,963 $59,737 (16.4) % $141,316 $96,317 46.7 % Net income per common share — basic $0.27 $0.33 (18.2) % $0.76 $0.53 43.4 % Net income per common share — diluted $0.27 $0.33 (18.2) % $0.76 $0.53 43.4 % Cash NOI $161,688 $148,432 8.9 % $318,885 $293,904 8.5 % Same Store Cash NOI (1) $145,266 $140,984 3.0 % $289,726 $280,758 3.2 % Adjusted EBITDAre $152,017 $138,726 9.6 % $298,430 $273,393 9.2 % Core FFO $120,506 $113,147 6.5 % $235,760 $222,186 6.1 % Core FFO per share / unit — basic $0.63 $0.61 3.3 % $1.24 $1.20 3.3 % Core FFO per share / unit — diluted $0.63 $0.61 3.3 % $1.24 $1.20 3.3 % Cash Available for Distribution $98,829 $95,119 3.9 % $205,315 $193,252 6.2 % (1) The Same Store pool accounted for 91.6% of the total portfolio square footage as of June 30, 2025. Definitions of the above-mentioned non-GAAP financial measures, together with reconciliations to net income (loss) in accordance with GAAP, appear at the end of this release. Please also see the Company's supplemental information package for additional disclosure. Acquisition, Development and Disposition Activity For the three months ended June 30, 2025, the Company acquired one building for $18.4 million with an Occupancy Rate of 100.0% upon acquisition. The chart below details the acquisition activity for the quarter: SECOND QUARTER 2025 ACQUISITION ACTIVITY Market DateAcquired Square Feet Buildings PurchasePrice ($000s) W.A. LeaseTerm (Years) CashCapitalizationRate Straight-LineCapitalizationRate Chicago, IL 6/12/2025 183,200 1 $18,399 5.0 Total / weighted average 183,200 1 $18,399 5.0 7.1 % 7.1 % The chart below details the 2025 acquisition activity and pipeline through July 28, 2025: 2025 ACQUISITION ACTIVITY AND PIPELINE DETAIL Square Feet Buildings PurchasePrice ($000s) W.A. LeaseTerm (Years) CashCapitalizationRate Straight-LineCapitalizationRate Q1 393,564 3 $43,285 3.2 6.8 % 7.0 % Q2 183,200 1 18,399 5.0 7.1 % 7.1 % Total / weighted average 576,764 4 $61,684 3.8 6.9 % 7.0 % ‌ Pipeline 28.4 million 168 $3.4 billion Additionally, in the second quarter, the Company acquired one vacant land parcel for $5.5 million as part of a joint venture. The chart below details the disposition activity for the six months ended June 30, 2025: 2025 DISPOSITION ACTIVITY ‌ Square Feet Buildings Sale Price ($000s) Q1 337,391 1 $67,000 Q2 151,200 1 9,100 Total 488,591 2 $76,100 Leasing Activity The chart below details the leasing activity for leases commenced during the three months ended June 30, 2025: SECOND QUARTER 2025 OPERATING PORTFOLIO LEASING ACTIVITY Lease Type SquareFeet LeaseCount W.A.LeaseTerm(Years) Cash BaseRent $/SF SL BaseRent $/SF Lease Commissions $/SF TenantImprovements$/SF Cash RentChange SL RentChange Retention New Leases 1,604,612 11 5.4 $6.16 $6.36 $1.98 $0.38 35.2 % 49.0 % Renewal Leases 2,611,673 21 5.8 $6.01 $6.46 $1.33 $0.23 18.7 % 36.7 % 75.3 % Total / weighted average 4,216,285 32 5.7 $6.07 $6.43 $1.58 $0.29 24.6 % 41.1 % The chart below details the leasing activity for leases commenced during the six months ended June 30, 2025: 2025 YEAR TO DATE OPERATING PORTFOLIO LEASING ACTIVITY Lease Type SquareFeet LeaseCount W.A.LeaseTerm(Years) Cash BaseRent $/SF SL BaseRent $/SF Lease Commissions $/SF TenantImprovements$/SF Cash RentChange SL RentChange Retention New Leases 1,883,667 15 5.2 $6.02 $6.23 $1.93 $0.50 35.0 % 48.7 % Renewal Leases 7,295,246 53 5.0 $6.02 $6.42 $1.30 $0.29 23.9 % 40.0 % 81.4 % Total / weighted average 9,178,913 68 5.0 $6.02 $6.38 $1.43 $0.34 26.1 % 41.7 % Additionally, for the three and six months ended June 30, 2025, leases commenced totaling 1.1 million and 1.2 million square feet, respectively, related to Value Add assets and first generation leasing. These are excluded from the Operating Portfolio statistics above. As of July 28, 2025, addressed 90.8% of expected 2025 new and renewal leasing, consisting of 13.3 million square feet, achieving Cash Rent Change of 24.5%. Capital Markets Activity On May 8, 2025, Moody's Investor Services raised the Company's corporate credit rating to Baa2 with a stable outlook from Baa3 with a positive outlook. On June 25, 2025, the Company funded a note purchase agreement that issues $550 million of fixed rate senior unsecured notes in a private placement offering with a weighted average fixed interest rate of 5.65% and a weighted average tenor of 6.5 years. The transaction consists of $350 million of 5.50% notes with a five-year term maturing on June 25, 2030; $100 million of 5.82% notes with an eight-year term maturing on June 25, 2033; and $100 million of 5.99% notes with a ten-year term maturing on June 25, 2035. As of June 30, 2025, Net Debt to Annualized Run Rate Adjusted EBITDAre was 5.1x and Liquidity was $961.2 million. Conference Call The Company will host a conference call tomorrow, Wednesday, July 30, 2025, at 10:00 a.m. (Eastern Time) to discuss the quarter's results. The call can be accessed live over the phone toll-free by dialing (877) 407-4018, or for international callers, (201) 689-8471. A replay will be available shortly after the call and can be accessed by dialing (844) 512-2921, or for international callers, (412) 317-6671. The passcode for the replay is 13754611. Interested parties may also listen to a simultaneous webcast of the conference call by visiting the Investor Relations section of the Company's website at www.stagindustrial.com, or by clicking on the following link: http://ir.stagindustrial.com/QuarterlyResults Supplemental Schedule The Company has provided a supplemental information package with additional disclosure and financial information on its website (www.stagindustrial.com) under the "Quarterly Results" tab in the Investor Relations section. CONSOLIDATED BALANCE SHEETS STAG Industrial, Inc. (unaudited, in thousands, except share data) June 30, 2025 December 31, 2024 Assets Rental Property: Land $ 782,046 $ 771,794 Buildings and improvements, net of accumulated depreciation of $1,177,622 and $1,085,866, respectively 5,325,367 5,295,120 Deferred leasing intangibles, net of accumulated amortization of $406,658 and $386,627, respectively 392,677 428,865 Total rental property, net 6,500,090 6,495,779 Cash and cash equivalents 15,379 36,284 Restricted cash 20,466 1,109 Tenant accounts receivable 138,936 136,357 Prepaid expenses and other assets 100,464 96,189 Interest rate swaps 19,703 36,466 Operating lease right-of-use assets 30,110 31,151 Total assets $ 6,825,148 $ 6,833,335 Liabilities and Equity Liabilities: Unsecured credit facility $ 51,000 $ 409,000 Unsecured term loans, net 1,022,522 1,021,848 Unsecured notes, net 1,966,291 1,594,092 Mortgage note, net 4,089 4,195 Accounts payable, accrued expenses and other liabilities 117,823 126,811 Interest rate swaps 1,250 — Tenant prepaid rent and security deposits 54,445 56,173 Dividends and distributions payable 23,668 23,469 Deferred leasing intangibles, net of accumulated amortization of $33,876 and $31,368, respectively 29,044 33,335 Operating lease liabilities 34,357 35,304 Total liabilities $ 3,304,489 $ 3,304,227 Equity: Preferred stock, par value $0.01 per share, 20,000,000 shares authorized at June 30, 2025 and December 31, 2024; none issued or outstanding — — Common stock, par value $0.01 per share, 300,000,000 shares authorized at June 30, 2025 and December 31, 2024, 186,691,274 and 186,517,523 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively 1,867 1,865 Additional paid-in capital 4,452,472 4,449,964 Cumulative dividends in excess of earnings (1,027,416) (1,029,757) Accumulated other comprehensive income 17,954 35,579 Total stockholders' equity 3,444,877 3,457,651 Noncontrolling interest in operating partnership 72,447 69,932 Noncontrolling interest in joint ventures 3,335 1,525 Total equity $ 3,520,659 $ 3,529,108 Total liabilities and equity $ 6,825,148 $ 6,833,335 ‌ CONSOLIDATED STATEMENTS OF OPERATIONS STAG Industrial, Inc. (unaudited, in thousands, except per share data) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Revenue Rental income $ 207,438 $ 186,467 $ 412,800 $ 373,869 Other income 155 3,310 367 3,451 Total revenue 207,593 189,777 413,167 377,320 Expenses Property 40,403 37,478 84,081 76,549 General and administrative 12,901 11,828 26,207 24,780 Depreciation and amortization 74,473 75,280 148,373 146,707 Loss on impairment 888 4,967 888 4,967 Other expenses (58) 595 514 1,158 Total expenses 128,607 130,148 260,063 254,161 Other income (expense) Interest and other income 3 14 8 25 Interest expense (33,618) (27,372) (66,147) (52,793) Debt extinguishment and modification expenses — — — (667) Gain on involuntary conversion — 5,717 1,855 5,717 Gain on the sales of rental property, net 5,692 23,086 55,605 23,086 Total other income (expense) (27,923) 1,445 (8,679) (24,632) Net income $ 51,063 $ 61,074 $ 144,425 $ 98,527 Less: income attributable to noncontrolling interest in operating partnership 1,058 1,291 3,022 2,117 Net income attributable to STAG Industrial, Inc. $ 50,005 $ 59,783 $ 141,403 $ 96,410 Less: amount allocated to participating securities 42 46 87 93 Net income attributable to common stockholders $ 49,963 $ 59,737 $ 141,316 $ 96,317 ‌ Weighted average common shares outstanding — basic 186,535 181,961 186,502 181,834 Weighted average common shares outstanding — diluted 186,910 182,185 186,834 182,088 ‌ Net income per share — basic and diluted Net income per share attributable to common stockholders — basic $ 0.27 $ 0.33 $ 0.76 $ 0.53 Net income per share attributable to common stockholders — diluted $ 0.27 $ 0.33 $ 0.76 $ 0.53 RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES STAG Industrial, Inc. (unaudited, in thousands) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 NET OPERATING INCOME RECONCILIATION Net income $ 51,063 $ 61,074 $ 144,425 $ 98,527 General and administrative 12,901 11,828 26,207 24,780 Depreciation and amortization 74,473 75,280 148,373 146,707 Interest and other income (3) (14) (8) (25) Interest expense 33,618 27,372 66,147 52,793 Loss on impairment 888 4,967 888 4,967 Gain on involuntary conversion — (5,717) (1,855) (5,717) Debt extinguishment and modification expenses — — — 667 Other expenses (58) 595 514 1,158 Gain on the sales of rental property, net (5,692) (23,086) (55,605) (23,086) Net operating income $ 167,190 $ 152,299 $ 329,086 $ 300,771 Net operating income $ 167,190 $ 152,299 $ 329,086 $ 300,771 Rental property straight-line rent adjustments, net (4,859) (4,702) (8,974) (7,399) Amortization of above and below market leases, net (643) 835 (1,227) 532 Cash net operating income $ 161,688 $ 148,432 $ 318,885 $ 293,904 ‌ Cash net operating income $ 161,688 Cash NOI from acquisition and disposition timing 60 Cash termination, solar and other income (2,990) Run Rate Cash NOI $ 158,758 ‌ Same Store Portfolio NOI Total NOI $ 167,190 $ 152,299 $ 329,086 $ 300,771 Less: NOI non-same-store properties (16,087) (5,135) (30,275) (10,077) Termination, solar and other adjustments, net (1,336) (2,973) (1,717) (3,619) Same Store NOI $ 149,767 $ 144,191 $ 297,094 $ 287,075 Less: straight-line rent adjustments, net (4,410) (3,032) (7,219) (5,904) Plus: amortization of above and below market leases, net (91) (175) (149) (413) Same Store Cash NOI $ 145,266 $ 140,984 $ 289,726 $ 280,758 ‌ EBITDA FOR REAL ESTATE (EBITDAre) RECONCILIATION Net income $ 51,063 $ 61,074 $ 144,425 $ 98,527 Depreciation and amortization 74,473 75,280 148,373 146,707 Interest and other income (3) (14) (8) (25) Interest expense 33,618 27,372 66,147 52,793 Loss on impairment 888 4,967 888 4,967 Gain on the sales of rental property, net (5,692) (23,086) (55,605) (23,086) EBITDAre $ 154,347 $ 145,593 $ 304,220 $ 279,883 ‌ ADJUSTED EBITDAre RECONCILIATION EBITDAre $ 154,347 $ 145,593 $ 304,220 $ 279,883 Straight-line rent adjustments, net (4,935) (4,769) (9,125) (7,531) Amortization of above and below market leases, net (643) 835 (1,227) 532 Non-cash compensation expense 3,248 2,953 6,430 5,861 Non-recurring other items — (169) (13) (302) Gain on involuntary conversion — (5,717) (1,855) (5,717) Debt extinguishment and modification expenses — — — 667 Adjusted EBITDAre $ 152,017 $ 138,726 $ 298,430 $ 273,393 RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES STAG Industrial, Inc. (unaudited, in thousands, except per share data) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 CORE FUNDS FROM OPERATIONS RECONCILIATION Net income $ 51,063 $ 61,074 $ 144,425 $ 98,527 Rental property depreciation and amortization 74,386 75,213 148,200 146,581 Loss on impairment 888 4,967 888 4,967 Gain on the sales of rental property, net (5,692) (23,086) (55,605) (23,086) Funds from operations $ 120,645 $ 118,168 $ 237,908 $ 226,989 Amount allocated to restricted shares of common stock and unvested units (139) (139) (293) (285) Funds from operations attributable to common stockholders and unit holders $ 120,506 $ 118,029 $ 237,615 $ 226,704 Funds from operations attributable to common stockholders and unit holders $ 120,506 $ 118,029 $ 237,615 $ 226,704 Debt extinguishment and modification expenses and other — 835 — 1,199 Gain on involuntary conversion — (5,717) (1,855) (5,717) Core funds from operations $ 120,506 $ 113,147 $ 235,760 $ 222,186 ‌ Weighted average common shares and units Weighted average common shares outstanding 186,535 181,961 186,502 181,834 Weighted average units outstanding 3,697 3,631 3,706 3,734 Weighted average common shares and units - basic 190,232 185,592 190,208 185,568 Dilutive shares 375 224 332 254 Weighted average common shares, units, and other dilutive shares - diluted 190,607 185,816 190,540 185,822 Core funds from operations per share / unit - basic $ 0.63 $ 0.61 $ 1.24 $ 1.20 Core funds from operations per share / unit - diluted $ 0.63 $ 0.61 $ 1.24 $ 1.20 ‌ CASH AVAILABLE FOR DISTRIBUTION RECONCILIATION Core funds from operations $ 120,506 $ 113,147 $ 235,760 $ 222,186 Amount allocated to restricted shares of common stock and unvested units 139 139 293 285 Non-rental property depreciation and amortization 87 67 173 126 Straight-line rent adjustments, net (4,935) (4,769) (9,125) (7,531) Capital expenditures (10,996) (7,779) (15,975) (16,173) Capital expenditures reimbursed by tenants (689) (2,115) (794) (2,568) Lease commissions and tenant improvements (9,868) (7,576) (14,085) (10,970) Non-cash portion of interest expense 1,337 1,052 2,638 2,036 Non-cash compensation expense 3,248 2,953 6,430 5,861 Cash available for distribution $ 98,829 $ 95,119 $ 205,315 $ 193,252 Non-GAAP Financial Measures and Other Definitions Acquisition Capital Expenditures: We define Acquisition Capital Expenditures as capital expenditures identified at the time of acquisition. Acquisition Capital Expenditures also include new lease commissions and tenant improvements for space that was not occupied under the Company's ownership. Cash Available for Distribution: Cash Available for Distribution represents Core FFO, excluding non-rental property depreciation and amortization, straight-line rent adjustments, non-cash portion of interest expense, non-cash compensation expense, and deducts capital expenditures reimbursed by tenants, capital expenditures, leasing commissions and tenant improvements, and severance costs. Cash Available for Distribution should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, and we believe that to understand our performance further, these measurements should be compared with our reported net income or net loss in accordance with GAAP, as presented in our consolidated financial statements. Cash Available for Distribution excludes, among other items, depreciation and amortization and capture neither the changes in the value of our buildings that result from use or market conditions of our buildings, all of which have real economic effects and could materially impact our results from operations, the utility of these measures as measures of our performance is limited. In addition, our calculation of Cash Available for Distribution may not be comparable to similarly titled measures disclosed by other REITs. Cash Capitalization Rate: We define Cash Capitalization Rate as calculated by dividing (i) the Company's estimate of year one cash net operating income from the applicable property's operations stabilized for occupancy (post-lease-up for vacant properties), which does not include termination income, solar income, miscellaneous other income, capital expenditures, general and administrative costs, reserves, tenant improvements and leasing commissions, credit loss, or vacancy loss, by (ii) the GAAP purchase price plus estimated Acquisition Capital Expenditures. These Capitalization Rate estimates are subject to risks, uncertainties, and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control, including those risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2024. Cash Rent Change: We define Cash Rent Change as the percentage change in the base rent of the lease commenced during the period compared to the base rent of the Comparable Lease for assets included in the Operating Portfolio. The calculation compares the first base rent payment due after the lease commencement date compared to the base rent of the last monthly payment due prior to the termination of the lease, excluding holdover rent. Rent under gross or similar type leases are converted to a net rent based on an estimate of the applicable recoverable expenses. Comparable Lease: We define a Comparable Lease as a lease in the same space with a similar lease structure as compared to the previous in-place lease, excluding new leases for space that was not occupied under our ownership. Earnings before Interest, Taxes, Depreciation, and Amortization for Real Estate (EBITDAre), Adjusted EBITDAre, Annualized Adjusted EBITDAre, Run Rate Adjusted EBITDAre, and Annualized Run Rate Adjusted EBITDAre: We define EBITDAre in accordance with the standards established by the National Association of Real Estate Investment Trusts ("NAREIT"). EBITDAre represents net income (loss) (computed in accordance with GAAP) before interest expense, interest and other income, tax, depreciation and amortization, gains or losses on the sale of rental property, and loss on impairments. Adjusted EBITDAre further excludes straight-line rent adjustments, non-cash compensation expense, amortization of above and below market leases, net, gain (loss) on involuntary conversion, debt extinguishment and modification expenses, and other non-recurring items. We define Annualized Adjusted EBITDAre as Adjusted EBITDAre multiplied by four. We define Run Rate Adjusted EBITDAre as Adjusted EBITDAre plus incremental Adjusted EBITDAre adjusted for a full period of acquisitions and dispositions. Run Rate Adjusted EBITDAre does not reflect the Company's historical results and does not predict future results, which may be substantially different. We define Annualized Run Rate Adjusted EBITDAre as Run Rate Adjusted EBITDAre excluding allowable one-time items multiplied by four plus allowable one-time items. EBITDAre, Adjusted EBITDAre, and Run Rate Adjusted EBITDAre should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, and we believe that to understand our performance further, EBITDAre, Adjusted EBITDAre, and Run Rate Adjusted EBITDAre should be compared with our reported net income or net loss in accordance with GAAP, as presented in our consolidated financial statements. We believe that EBITDAre, Adjusted EBITDAre, and Run Rate Adjusted EBITDAre are helpful to investors as supplemental measures of the operating performance of a real estate company because they are direct measures of the actual operating results of our properties. We also use these measures in ratios to compare our performance to that of our industry peers. Funds from Operations (FFO) and Core FFO: We define FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts ("NAREIT"). FFO represents net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable operating property, gains (losses) from sales of land, impairment write-downs of depreciable real estate, rental property depreciation and amortization (excluding amortization of deferred financing costs and fair market value of debt adjustment) and after adjustments for unconsolidated partnerships and joint ventures. Core FFO excludes debt extinguishment and modification expenses and other expenses, gain (loss) on involuntary conversion, gain (loss) on swap ineffectiveness, and non-recurring other expenses. None of FFO or Core FFO should be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, and we believe that to understand our performance further, these measurements should be compared with our reported net income or net loss in accordance with GAAP, as presented in our consolidated financial statements. We use FFO as a supplemental performance measure because it is a widely recognized measure of the performance of REITs. FFO may be used by investors as a basis to compare our operating performance with that of other REITs. We and investors may use Core FFO similarly as FFO. However, because FFO and Core FFO exclude, among other items, depreciation and amortization and capture neither the changes in the value of our buildings that result from use or market conditions of our buildings, all of which have real economic effects and could materially impact our results from operations, the utility of these measures as measures of our performance is limited. In addition, other REITs may not calculate FFO in accordance with the NAREIT definition as we do, and, accordingly, our FFO may not be comparable to such other REITs' FFO. Similarly, our calculation of Core FFO may not be comparable to similarly titled measures disclosed by other REITs. GAAP: We define GAAP as generally accepted accounting principles in the United States. Liquidity: We define Liquidity as the amount of aggregate undrawn nominal commitments the Company could immediately borrow under the Company's unsecured debt instruments, consistent with the financial covenants, plus unrestricted cash balances. Market: We define Market as the market defined by CBRE-EA based on the building address. If the building is located outside of a CBRE-EA defined market, the city and state is reflected. Net Debt: We define Net Debt as the outstanding principal balance of the Company's total debt, less cash and cash equivalents. Net operating income (NOI), Cash NOI, and Run Rate Cash NOI: We define NOI as rental income, including reimbursements, less property expenses, which excludes depreciation, amortization, loss on impairments, general and administrative expenses, interest expense, interest income, gain (loss) on involuntary conversion, debt extinguishment and modification expenses, gain on sales of rental property, and other expenses. We define Cash NOI as NOI less rental property straight-line rent adjustments and less amortization of above and below market leases, net. We define Run Rate Cash NOI as Cash NOI plus Cash NOI adjusted for a full period of acquisitions and dispositions, less cash termination income, solar income and revenue associated with one-time tenant reimbursements of capital expenditures. Run Rate Cash NOI does not reflect the Company's historical results and does not predict future results, which may be substantially different. We consider NOI, Cash NOI and Run Rate Cash NOI to be appropriate supplemental performance measures to net income because we believe they help us, and investors understand the core operations of our buildings. None of these measures should be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, and we believe that to understand our performance further, these measurements should be compared with our reported net income or net loss in accordance with GAAP, as presented in our consolidated financial statements. Further, our calculations of NOI, Cash NOI and Run Rate NOI may not be comparable to similarly titled measures disclosed by other REITs. Occupancy Rate: We define Occupancy Rate as the percentage of total leasable square footage for which either revenue recognition has commenced in accordance with GAAP or the lease term has commenced as of the close of the reporting period, whichever occurs earlier. Operating Portfolio: We define the Operating Portfolio as all buildings that were acquired stabilized or have achieved Stabilization. The Operating Portfolio excludes non-core flex/office buildings, buildings contained in the Value Add Portfolio, and buildings classified as held for sale. Pipeline: We define Pipeline as a point in time measure that includes all of the transactions under consideration by the Company's acquisitions group that have passed the initial screening process. The pipeline also includes transactions under contract and transactions with non-binding LOIs. Renewal Lease: We define a Renewal Lease as a lease signed by an existing tenant to extend the term for 12 months or more, including (i) a renewal of the same space as the current lease at lease expiration, (ii) a renewal of only a portion of the current space at lease expiration, or (iii) an early renewal or workout, which ultimately does extend the original term for 12 months or more. Repositioning: We define Repositioning as significant capital improvements made to improve the functionality of a building without causing material disruption to the tenant or Occupancy Rate. Buildings undergoing Repositioning remain in the Operating Portfolio. Retention: We define Retention as the percentage determined by taking Renewal Lease square footage commencing in the period divided by square footage of leases expiring in the period for assets included in the Operating Portfolio. Same Store: We define Same Store properties as properties that were in the Operating Portfolio for the entirety of the comparative periods presented. The results for Same Store properties exclude termination fees, solar income, and revenue associated with one-time tenant reimbursements of capital expenditures. Same Store properties exclude Operating Portfolio properties with expansions placed into service or transferred from the Value Add Portfolio to the Operating Portfolio after January 1, 2024. Stabilization: We define Stabilization for assets under development or redevelopment to occur as the earlier of achieving 90% occupancy or 12 months after completion. Stabilization for assets that were acquired and immediately added to the Value Add Portfolio occurs under the following: if acquired with less than 75% occupancy as of the acquisition date, Stabilization will occur upon the earlier of achieving 90% occupancy or 12 months from the acquisition date; if acquired and will be less than 75% occupied due to known move-outs within two years of the acquisition date, Stabilization will occur upon the earlier of achieving 90% occupancy after the known move-outs have occurred or 12 months after the known move-outs have occurred. Straight-Line Capitalization Rate: We define Straight-Line Capitalization Rate as calculated by dividing (i) the Company's estimate of annual net operating income from the applicable property's operations stabilized for occupancy (post-lease-up for vacant properties), which is utilzing the average monthly base rent over the term of the lease and does not include termination income, solar income, miscellaneous other income, capital expenditures, general and administrative costs, reserves, tenant improvements and leasing commissions, credit loss, or vacancy loss, by (ii) the GAAP purchase price plus estimated Acquisition Capital Expenditures. These Capitalization Rate estimates are subject to risks, uncertainties, and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control, including those risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2024. Straight-Line Rent Change (SL Rent Change): We define SL Rent Change as the percentage change in the average monthly base rent over the term of the lease that commenced during the period compared to the Comparable Lease for assets included in the Operating Portfolio. Rent under gross or similar type leases are converted to a net rent based on an estimate of the applicable recoverable expenses, and this calculation excludes the impact of any holdover rent. Value Add Portfolio: We define the Value Add Portfolio as properties that meet any of the following criteria: less than 75% occupied as of the acquisition date will be less than 75% occupied due to known move-outs within two years of the acquisition date; out of service with significant physical renovation of the asset; development. Weighted Average Lease Term: We define Weighted Average Lease Term as the contractual lease term in years, assuming that tenants exercise no renewal options, purchase options, or early termination rights, as of the lease start date weighted by square footage. Weighted Average Lease Term related to acquired assets reflects the remaining lease term in years as of the acquisition date weighted by square footage. Forward-Looking Statements This earnings release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. STAG Industrial, Inc. (STAG) intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe STAG's future plans, strategies and expectations, are generally identifiable by use of the words "believe," "will," "expect," "intend," "anticipate," "estimate," "should", "project" or similar expressions. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond STAG's control and which could materially affect actual results, performances or achievements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, the risk factors discussed in STAG's most recent Annual Report on Form 10-K for the year ended December 31, 2024, as updated by the Company's subsequent reports filed with the Securities and Exchange Commission. Accordingly, there is no assurance that STAG's expectations will be realized. Except as otherwise required by the federal securities laws, STAG disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in STAG's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. SOURCE STAG Industrial, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

STAG INDUSTRIAL ANNOUNCES SECOND QUARTER 2025 RESULTS

FAQ

Why Bullish?

How important is it?

Why Short Term?

Related Companies

Related News