Stag Industrial, Inc. (STAG) Earnings & Analysis

Latest quarter

STAG Industrial reported Q3 FY2026 revenue of $231.0 million, above the consensus estimate of $227.5 million. Adjusted earnings per share matched the consensus at $0.66. Revenue rose from $211.1 million a year earlier, while diluted earnings per share increased to $0.37 from $0.26.

The company’s filing shows same-store rental income increased to approximately $205.5 million from approximately $198.5 million. STAG attributed higher same-store lease income primarily to new leases and renewals, partly offset by lower base rent from tenant vacancies. Same-store occupancy was 97.0% at September 30, 2026, compared with 97.7% a year earlier.

STAG reported an operating margin of 38.4%, compared with 38.0% a year earlier, and free cash flow of $65.1 million, compared with −$3.2 million. The filing attributed part of the increase in quarterly net income to a higher gain on rental property sales, partly offset by increased interest expense.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO William Crooker said national industrial vacancy had fallen since the previous quarter, while demand came from logistics providers, advanced manufacturing and data-center-related tenants. He said STAG had leased 2.5 million square feet to data-center-related tenants since the start of 2025, accounting for 26% of its new operating-portfolio leasing over that period. Crooker said those buildings were already in markets the company served for other kinds of demand.

CFO Matts Pinard said STAG commenced 30 leases covering 3.6 million square feet in the quarter, with a 23.8% cash leasing spread and 90.3% retention. On an analyst’s question about tenant credit, Pinard said smaller, highly leveraged businesses with low margins were the main concern; STAG had incurred 12 basis points of credit loss through the third quarter, below its initial expectation.

Crooker said STAG acquired two buildings for $107.9 million during the quarter and another for $55 million after quarter-end. Asked about acquisitions, he said the updated annual outlook included few additional purchases because of uncertainty in capital markets; he said it was “hard to pinpoint a number” for next year. Chief Investment Officer Michael Chase said some deals were being renegotiated as prices adjusted, though some sellers were waiting or buyers were proceeding.

On development, Chief Operating Officer Steven Kimball told analysts that the Mount Anderson building in Reno had the most leasing risk. He said traditional fulfillment and logistics users had not returned to the North Valleys market, although vacancy and absorption trends were improving.

Asked about the quarter ahead, Pinard said achieving the midpoint of annual guidance would involve a fourth-quarter step-up in core FFO. He cited a full quarter of income from properties acquired late in September, higher occupancy and credit losses below earlier expectations.

Guidance

STAG raised its 2026 core FFO guidance to $2.64 to $2.66 per share. Pinard said the company also raised its average same-store occupancy range to 96.75% to 97.25% and its same-store cash NOI growth range to 3.5-3.75%, from 3-3.5%.

Pinard said higher occupancy expectations and lower-than-expected cash credit losses drove the same-store growth revision. STAG narrowed its expected acquisition volume to $530 million to $600 million and raised its general and administrative expense guidance to $56 million to $57 million.