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1. Company Snapshot

1.a. Company Description

STAG Industrial, Inc.(NYSE: STAG) is a real estate investment trust focused on the acquisition and operation of single-tenant, industrial properties throughout the United States.By targeting this type of property, STAG has developed an investment strategy that helps investors find a powerful balance of income plus growth.

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1.b. Last Insights on STAG

STAG Industrial's recent performance was driven by solid financial compounding, fueled by strategic acquisitions and big rent increases, leading to a raised FFO guidance. The company's focus on industrial real estate and conservative payout ratio provide income stability, while its growth runway remains long, driven by ongoing warehouse expansion, accretive acquisitions, and strong demand from e-commerce and nearshoring trends.

1.c. Company Highlights

2. STAG Industrial's Q3 2025 Earnings: A Strong Performance

STAG Industrial's financial performance in Q3 2025 was solid, with core FFO per share reaching $0.65, an 8.3% increase from the same period last year, and above estimates of $0.63. The company's same-store cash NOI grew 3.9% for the quarter and 3.5% year-to-date, demonstrating a stable and improving industrial fundamentals landscape. The company's acquisition activity was also notable, with $101.5 million in acquisitions during the quarter, and a total of $153 million of acquisitions under agreement, with cap rates consistent with recent closes.

Publication Date: Nov -05

📋 Highlights
  • Core FFO Guidance Raised: Increased to $2.52-$2.54/share (up $0.03 midpoint), driven by 8.3% YoY growth in core FFO to $0.65/share.
  • 2025 Leasing Progress: 99% of forecasted leasing achieved with 24% cash spreads, and 52% of 2026 portfolio pre-leased at 18-20% spreads.
  • Acquisition Activity: $150.7M in Q3 acquisitions (6.5-7.2% cap rates) and $153M under agreement, targeting $350-$500M total 2025 acquisitions.
  • Development Momentum: 3.4M sq ft across 13 projects, 52% completed (83% leased), including a 80%+ leased build-to-suit in Dayton (4% vacancy).
  • Strong Balance Sheet: Net debt/EBITDA at 5.1x, $904M liquidity, and $100M+ in free cash flow, supporting disciplined capital deployment.

Leasing and Development Activity

The leasing environment remains robust, with 99% of the company's forecasted leasing for 202, achieved at levels consistent with initial guidance, including 24% cash leasing spreads. The company has also made progress on its development platform, with 52% of the operating portfolio square feet expected to lease in 2026 already addressed, and cash leasing spreads expected to be between 18% and 20%. Notably, the company signed a lease with a supplier to a wood flooring manufacturing company that brought their operations onshore, as well as leases related to solar manufacturing plants and a lease with a company that manufactures generators for data centers.

Guidance and Outlook

STAG Industrial has increased its cash same-store guidance to 4%-4.25% for the year, and decreased its expected acquisition volume to $350-$500 million. The company's leverage remains low, with net debt to annualized run rate adjusted EBITDA equal to 5.1x and liquidity of $904 million. Analysts estimate next year's revenue growth at 7.6%, which is a positive indicator for the company's future prospects.

Valuation and Returns

With a P/E Ratio of 29.86 and an EV/EBIT,DA of 17.43, the company's valuation appears to be relatively high. However, its ROIC of 46.11% and ROE of 6.99% indicate a strong return on investment. The company's Dividend Yield is 3.86%, which is an attractive feature for income-focused investors. The company's Net Debt / EBITDA ratio is 5.3, which is in line with its target leverage ratio.

3. NewsRoom

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STAG INDUSTRIAL TO PARTICIPATE IN NAREIT CONFERENCE

Dec -04

Source: prnewswire.com

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3 Options for Investors Looking to Create Monthly Passive Income Creatively

Nov -30

Source: 247wallst.com

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Picking A Winner In Industrial REITs

Nov -28

Source: seekingalpha.com

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STAG Industrial Q3: Earnings Beat, Consistent Monthly Income

Nov -26

Source: seekingalpha.com

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3 REITs That Deliver High Yields And Have More Upside

Nov -22

Source: 247wallst.com

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5 Passive Income Monthly Pay Dividend All-Stars Every Boomer Should Own

Nov -21

Source: 247wallst.com

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Looking to Start Earning Passive Income in November? Check Out These Top High-Yielding Monthly Dividend Stocks.

Nov -10

Source: fool.com

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Teacher Retirement System of Texas Grows Stock Position in Stag Industrial, Inc. $STAG

Nov -05

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.83%)

6. Segments

Fixed Lease Payments

Expected Growth: 8%

STAG Industrial's 8% growth in fixed lease payments is driven by increasing demand for logistics and e-commerce facilities, strategic acquisitions, and a strong portfolio of long-term leases with creditworthy tenants, resulting in stable and predictable cash flows.

Variable Lease Payments

Expected Growth: 7%

STAG Industrial's 7% growth in Variable Lease Payments is driven by increasing demand for logistics and e-commerce facilities, expansion into high-growth markets, and strategic acquisitions. Additionally, the company's focus on long-term leases and rent escalations contributes to revenue growth, while its diversified tenant base and strong property operations management also support this growth.

Straight-line Rental Income

Expected Growth: 10%

STAG Industrial's 10% straight-line rental income growth is driven by increasing demand for industrial properties, strategic acquisitions, and rent escalations. Additionally, the company's focus on high-quality, single-tenant properties and a diversified tenant base contribute to its growth. Furthermore, STAG's ability to identify and capitalize on opportunities in the industrial real estate market also supports its growth momentum.

Other

Expected Growth: 6%

STAG Industrial's 6% growth is driven by increasing demand for e-commerce logistics, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on single-tenant, industrial properties with long-term leases provides a stable source of revenue. Furthermore, STAG's ability to capitalize on the trend of companies outsourcing their logistics and supply chain management needs also contributes to its growth.

Net Increase (Decrease) to Rental Income Related to above and below Market Lease Amortization

Expected Growth: 9%

STAG Industrial's 9% net increase in rental income is driven by above-market lease amortization, resulting from strategic acquisitions and lease renewals. This growth is fueled by a strong industrial property market, characterized by high demand, limited supply, and increasing rents. Additionally, the company's focus on high-quality, long-term leases and proactive asset management contribute to the upward trend.

7. Detailed Products

Industrial Warehouses

STAG Industrial, Inc. offers industrial warehouses for rent, providing flexible and customizable storage solutions for businesses of all sizes.

Distribution Centers

STAG Industrial's distribution centers provide strategic locations for businesses to store and distribute their products, reducing transportation costs and increasing efficiency.

Manufacturing Facilities

STAG Industrial offers manufacturing facilities for rent, providing businesses with the space and infrastructure needed to manufacture and assemble products.

Cold Storage Facilities

STAG Industrial's cold storage facilities provide temperature-controlled environments for businesses to store perishable goods, ensuring product quality and safety.

Last-Mile Delivery Facilities

STAG Industrial's last-mile delivery facilities provide businesses with strategic locations for final product delivery, reducing transportation costs and increasing customer satisfaction.

8. STAG Industrial, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for STAG Industrial, Inc. is medium due to the availability of alternative industrial properties and logistics services.

Bargaining Power Of Customers

The bargaining power of customers for STAG Industrial, Inc. is low due to the company's diversified customer base and long-term leases.

Bargaining Power Of Suppliers

The bargaining power of suppliers for STAG Industrial, Inc. is medium due to the company's dependence on a few large suppliers for construction and maintenance services.

Threat Of New Entrants

The threat of new entrants for STAG Industrial, Inc. is low due to the high barriers to entry in the industrial real estate market, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for STAG Industrial, Inc. is high due to the competitive nature of the industrial real estate market, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 43.74%
Debt Cost 4.90%
Equity Weight 56.26%
Equity Cost 9.14%
WACC 7.28%
Leverage 77.76%

11. Quality Control: STAG Industrial, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Momentum: 1.0

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A-Score: 6.1/10

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Growth: 5.4

Quality: 7.2

Yield: 7.0

Momentum: 4.0

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Quality: 7.1

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A-Score: 5.7/10

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

38.79$

Current Price

38.79$

Potential

-0.00%

Expected Cash-Flows