In This Article:
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Core FFO per Share: $0.61, exceeding initial expectations.
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Cash Leasing Spreads: 25.1% achieved on 78.5% of expected 2025 leases.
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Leases Commenced: 36 leases totaling 5 million square feet with cash and straight-line leasing spreads of 27.3% and 42.1%, respectively.
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Retention Rate: 85.3% for the quarter.
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Acquisition Volume: $43 million for the first quarter, including three buildings.
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Disposition Proceeds: $67 million from the sale of one building.
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Same-Store Cash NOI Growth: 3.4% for the quarter.
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Liquidity: $1 billion at quarter end.
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Net Debt to Adjusted EBITDA: 5.2 times.
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Cash Available for Distribution: $106.5 million, an increase of 8.5% compared to the prior period.
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New Leasing: 1 million square feet commencing in the second quarter.
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Development Activity: 2.5 million square feet across 11 buildings, with 50% under construction and 16% pre-leased.
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Private Placement Notes: $550 million issued with a weighted average fixed interest rate of 5.65%.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Stag Industrial Inc (NYSE:STAG) reported a strong start to 2025 with core FFO per share of $0.61, exceeding initial expectations.
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The company achieved cash leasing spreads of 25.1% and has already leased 78.5% of the operating portfolio square feet expected for 2025.
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Stag Industrial Inc (NYSE:STAG) completed 36 leases totaling 5 million square feet, generating cash and straight-line leasing spreads of 27.3% and 42.1%, respectively.
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Liquidity remains robust with $1 billion at quarter-end, supported by a recent $550 million fixed-rate senior unsecured notes issuance.
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The company successfully executed a 500,000 square foot full building lease in Savannah with zero downtime, achieving a 25% cash leasing spread.
Negative Points
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The escalation of the global trade war and tariffs have introduced uncertainty, potentially impacting tenant decisions and lease gestation periods.
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There is a noted lengthening in lease gestation periods due to macroeconomic events, causing delays in converting tours to signed LOIs.
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The transaction market has seen some volatility, with sellers pulling portfolios from the market due to pricing concerns.
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Some markets, such as Atlanta and San Diego, are experiencing weakness, impacting leasing activity.
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The company is maintaining a cautious credit loss guidance of 75 basis points due to ongoing discussions with American Power Distributors, despite them being current on rent.