STAG INDUSTRIAL ANNOUNCES THIRD QUARTER 2024 RESULTS
BOSTON, Oct. 29, 2024 /PRNewswire/ -- STAG Industrial, Inc. (the "Company") (NYSE:STAG), today announced its financial and operating results for the quarter ended September 30, 2024.
"STAG executed its business plan this quarter, bringing the Company another step closer to achieving its goals for 2024," said Bill Crooker, President and Chief Executive Officer of the Company. "Our internal growth, along with our acquisitions and developments, will position us to deliver strong Core FFO growth."
Third Quarter 2024 Highlights
Reported $0.23 of net income per basic and diluted common share for the third quarter of 2024, compared to $0.28 of net income per basic and diluted common share for the third quarter of 2023. Reported $41.8 million of net income attributable to common stockholders for the third quarter of 2024, compared to net income attributable to common stockholders of $50.0 million for the third quarter of 2023.
Achieved $0.60 of Core FFO per diluted share for the third quarter of 2024, an increase of 1.7% compared to the third quarter of 2023 Core FFO per diluted share of $0.59.
Produced Cash NOI of $148.4 million for the third quarter of 2024, compared to the third quarter of 2023 of $140.7 million.
Produced Same Store Cash NOI of $138.2 million for the third quarter of 2024, compared to the third quarter of 2023 of $132.4 million.
Produced Cash Available for Distribution of $88.0 million for the third quarter of 2024, compared to the third quarter of 2023 of $96.8 million.
Acquired six buildings in the third quarter of 2024, consisting of 613,839 square feet, for $113.0 million, with a Cash Capitalization Rate of 6.7% and a Straight-Line Capitalization Rate of 7.2%.
Acquired two vacant land parcels for $10.9 million. These assets are excluded from the acquisition statistics above.
Sold one building in the third quarter of 2024, consisting of 177,071 square feet, for $22.6 million.
Achieved an Occupancy Rate of 97.1% on the total portfolio and 97.8% on the Operating Portfolio as of September 30, 2024.
Commenced Operating Portfolio leases of 3.3 million square feet for the third quarter of 2024, resulting in a Cash Rent Change and Straight-Line Rent Change of 24.6% and 34.3%, respectively.
Experienced 62.5% Retention for 3.2 million square feet of leases expiring in the quarter.
On September 10, 2024, the Company refinanced its Unsecured Credit Facility, which was scheduled to mature in October 2025 and now matures September 8, 2028 with two six-month extension options and no changes to pricing.
As of October 28, 2024, addressed 99.5% of expected 2024 new and renewal leasing, consisting of 13.2 million square feet, achieving Cash Rent Change of 28.5%.
As of October 28, 2024, addressed 37.8% of expected 2025 new and renewal leasing, consisting of 5.7 million square feet, achieving Cash Rent Change of 24.1%.
Raised gross proceeds of $93.1 million of equity on a forward basis through the Company's At-The-Market ("ATM") offering program for the third quarter of 2024.
Subsequent to quarter end, on October 1, 2024, the Company paid at maturity its $50 million fixed rate senior unsecured note.
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, October 30, 2024 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
THIRD QUARTER 2024 KEY FINANCIAL MEASURES
Three months ended September 30,
Nine months ended September 30,
Metrics
2024
2023
% Change
2024
2023
% Change
(in $000s, except per share data)
Net income attributable to common stockholders
$41,811
$49,987
(16.4) %
$138,128
$150,953
(8.5) %
Net income per common share, basic
$0.23
$0.28
(17.9) %
$0.76
$0.84
(9.5) %
Net income per common share, diluted
$0.23
$0.28
(17.9) %
$0.76
$0.84
(9.5) %
Cash NOI
$148,415
$140,657
5.5 %
$442,319
$407,798
8.5 %
Same Store Cash NOI (1)
$138,173
$132,402
4.4 %
$413,460
$389,522
6.1 %
Adjusted EBITDAre
$138,741
$130,950
5.9 %
$412,134
$378,686
8.8 %
Core FFO
$110,765
$108,756
1.8 %
$332,951
$313,837
6.1 %
Core FFO per share / unit, basic
$0.60
$0.59
1.7 %
$1.79
$1.71
4.7 %
Core FFO per share / unit, diluted
$0.60
$0.59
1.7 %
$1.79
$1.71
4.7 %
Cash Available for Distribution
$87,965
$96,843
(9.2) %
$281,217
$274,110
2.6 %
(1)
The Same Store pool accounted for 93.7% of the total portfolio square footage as of September 30, 2024.
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 September 30, 2024, the Company acquired six buildings for $113.0 million with an Occupancy Rate of 100.0% upon acquisition. The chart below details the acquisition activity for the quarter:
THIRD QUARTER 2024 ACQUISITION ACTIVITY
Market
Date Acquired
SquareFeet
Buildings
PurchasePrice ($000s)
W.A. Lease Term (Years)
Cash CapitalizationRate
Straight-LineCapitalization Rate
LaGrange, GA
9/9/2024
323,368
1
$34,870
7.5
Boston, MA
9/12/2024
290,471
5
78,127
4.9
Total / weighted average
613,839
6
$112,997
6.2
6.7 %
7.2 %
In the third quarter, the Company acquired one vacant land parcel for $1.9 million. This asset is excluded from the acquisition activity statistics above.
In the third quarter, the Company acquired one vacant land parcel for $9.0 million as part of a joint venture. This asset is excluded from the acquisition activity statistics above.
The chart below details the 2024 acquisition activity and pipeline through October 28, 2024:
2024 ACQUISITION ACTIVITY AND PIPELINE DETAIL
Square Feet
Buildings
PurchasePrice ($000s)
W.A. Lease Term (Years)
Cash Capitalization Rate
Straight-LineCapitalization Rate
Q1
697,500
1
$50,073
6.8
6.1 %
6.8 %
Q2
2,193,684
10
225,622
4.4
6.7 %
7.0 %
Q3
613,839
6
112,997
6.2
6.7 %
7.2 %
Total / weighted average
3,505,023
17
$388,692
5.2
6.6 %
7.0 %
As of October 28, 2024
Subsequent to quarter-end acquisitions
0.5 million
2
$66.6 million
Pipeline
33.6 million
201
$4.2 billion
Year to date, the Company acquired three vacant land parcels for $19.1 million. These assets are excluded from the acquisition activity statistics above.
The chart below details the disposition activity for the nine months ended September 30, 2024:
2024 DISPOSITION ACTIVITY
Square Feet
Buildings
Sale Price ($000s)
Q1
—
—
$—
Q2
1,106,217
7
78,196
Q3
177,071
1
22,550
Total
1,283,288
8
$100,746
Leasing Activity
The chart below details the leasing activity for leases commenced during the three months ended September 30, 2024:
THIRD QUARTER 2024 OPERATING PORTFOLIO LEASING ACTIVITY
Lease Type
Square Feet
Lease Count
W.A.Lease Term(Years)
Cash
Base Rent
$/SF
SL BaseRent
$/SF
Lease
Commissions
$/SF
Tenant Improvements$/SF
Cash RentChange
SL Rent
Change
Retention
New Leases
1,294,282
6
3.8
$5.46
$5.47
$1.18
$0.26
22.1 %
27.4 %
Renewal Leases
2,009,016
14
4.4
$6.61
$7.02
$1.10
$0.35
26.0 %
38.0 %
62.5 %
Total / weighted average
3,303,298
20
4.2
$6.16
$6.41
$1.13
$0.32
24.6 %
34.3 %
The chart below details the leasing activity for leases commenced during the nine months ended September 30, 2024:
2024 YEAR TO DATE OPERATING PORTFOLIO LEASING ACTIVITY
Lease Type
Square Feet
LeaseCount
W.A. Lease Term(Years)
Cash
BaseRent
$/SF
SL BaseRent
$/SF
Lease
Commissions
$/SF
Tenant Improvements$/SF
Cash Rent Change
SL Rent Change
Retention
New Leases
2,582,265
15
4.5
$5.66
$5.81
$1.52
$0.44
23.4 %
32.2 %
Renewal Leases
8,536,341
60
4.6
$6.12
$6.47
$1.00
$0.28
32.8 %
46.9 %
76.5 %
Total / weighted average
11,118,606
75
4.6
$6.01
$6.32
$1.12
$0.31
30.6 %
43.5 %
Additionally, for the three and nine months ended September 30, 2024, leases commenced totaling 11,660 and 402,432 square feet, respectively, related to Value Add assets and first generation leasing. These are excluded from the Operating Portfolio statistics above.
As of October 28, 2024, addressed 99.5% of expected 2024 new and renewal leasing, consisting of 13.2 million square feet, achieving Cash Rent Change of 28.5%.
As of October 28, 2024, addressed 37.8% of expected 2025 new and renewal leasing, consisting of 5.7 million square feet, achieving Cash Rent Change of 24.1%.
Capital Markets Activity
In the third quarter of 2024, the Company sold 2.3 million shares on a forward basis under the ATM common stock offering program at an average price of $39.89 per share, or $93.1 million. The Company does not initially receive any proceeds from the sale of shares on a forward basis and has until the third quarter in 2025 to settle the forward contracts.
The Company has total forward equity net proceeds of $164.3 million available as of September 30, 2024.
On September 10, 2024, the Company refinanced its Unsecured Credit Facility. The refinanced revolving credit facility matures on September 8, 2028, with two six-month extension options, subject to certain conditions and no changes to pricing.
As of September 30, 2024, Net Debt to Annualized Run Rate Adjusted EBITDAre was 5.1x and Liquidity was $810.0 million.
Subsequent to quarter end, on October 1, 2024, the Company paid at maturity its $50 million fixed rate senior unsecured note.
Conference Call
The Company will host a conference call tomorrow, Wednesday, October 30, 2024, 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 13749104.
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)
