8-K: STAG Industrial Reports Q1 2026 Results

STAG Industrial announced its first quarter 2026 financial and operating results, highlighting strong leasing activity and a growing acquisition pipeline.

Summary

• STAG Industrial reported net income per diluted common share of $0.32 for the first quarter of 2026, a decrease from $0.49 in the first quarter of 2025.
• Net income attributable to common stockholders was $62.0 million for Q1 2026, down from $91.3 million in Q1 2025.
• Core FFO per diluted share increased by 6.6% to $0.65 in Q1 2026, compared to $0.61 in Q1 2025.
• Same Store Cash NOI grew by 4.1% to $159.3 million in Q1 2026, up from $153.1 million in Q1 2025.
• The company acquired one building for $80.7 million and sold one building for $30.1 million in Q1 2026.
• Occupancy rates stood at 95.1% for the total portfolio and 96.0% for the operating portfolio as of March 31, 2026.
• Leasing activity commenced 6.0 million square feet in Q1 2026, with a Cash Rent Change of 20.9% and Straight-Line Rent Change of 39.6%.
• Subsequent to quarter end, STAG signed two new leases at its development projects in South Carolina and North Carolina.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive report, with strong operational metrics like Core FFO and Same Store Cash NOI growth, despite a year-over-year decrease in net income due to prior period gains.

Positives

• Core FFO per diluted share increased by 6.6% to $0.65 in Q1 2026, compared to $0.61 in Q1 2025.
• Same Store Cash NOI increased by 4.1% to $159.3 million in Q1 2026, compared to $153.1 million in Q1 2025.
• Achieved an Occupancy Rate of 95.1% on the total portfolio and 96.0% on the Operating Portfolio as of March 31, 2026.
• Commenced Operating Portfolio leases of 6.0 million square feet, resulting in a Cash Rent Change of 20.9% and Straight-Line Rent Change of 39.6%.
• Acquired one building for $80.7 million with a Cash Capitalization Rate of 6.1%.
• Subsequent to quarter end, signed leases for 72,900 sq ft in Wellford, SC and 44,980 sq ft in Concord, NC at development projects.

Negatives

• Reported net income per basic and diluted common share decreased to $0.32 in Q1 2026 from $0.49 in Q1 2025.
• Net income attributable to common stockholders decreased by 32.2% to $62.0 million in Q1 2026 from $91.3 million in Q1 2025.
• Sold one building for $30.1 million, which is less than the acquisition cost of $80.7 million for the building acquired in the same quarter.

Risks

• Forward-looking statements involve known and unknown risks, uncertainties, and other factors that could materially affect actual results.
• Factors that may cause actual results to differ materially from current expectations are discussed in STAG's most recent Annual Report on Form 10-K.

Future Outlook

The company's results set a solid foundation for 2026, and management believes STAG is well-positioned to capitalize on opportunities. The acquisition pipeline is substantial at $3.9 billion as of April 27, 2026.

Management Comments

• STAG delivered strong first quarter results driven by healthy leasing activity, disciplined capital allocation, and a growing acquisition pipeline.
• These results set a solid foundation for 2026 and we remain well positioned to capitalize on opportunities.

Industry Context

StockSavvy.ai notes that STAG Industrial's Q1 2026 results reflect continued strength in the industrial real estate sector, characterized by robust leasing demand and increasing rental rates, as evidenced by their strong Cash Rent Change and Straight-Line Rent Change metrics.

Comparison to Industry Standards

• STAG's Same Store Cash NOI growth of 4.1% is a solid indicator of operational performance within the industrial REIT sector, which has generally seen positive rent growth.
• The company's occupancy rate of 95.1% for the total portfolio and 96.0% for the operating portfolio remains competitive and above the average for many diversified real estate portfolios.
• The acquisition of a 748,833 sq ft building for $80.7 million at a 6.1% Cash Capitalization Rate aligns with current market transaction metrics for well-located industrial assets.

Stakeholder Impact

• Shareholders: Benefit from a quarterly dividend of $0.3875 per share and potential share price appreciation driven by operational performance and acquisitions.
• Employees: Continued company growth and stability may lead to job security and potential opportunities.
• Suppliers/Creditors: Stable financial condition and operational performance support ongoing business relationships.

Next Steps

• Conduct conference call on April 29, 2026, to discuss Q1 2026 results.
• Continue to capitalize on acquisition opportunities with a $3.9 billion pipeline.
• Pay quarterly dividend of $0.3875 per share on July 15, 2026.

Key Dates

Recommendation

While operational metrics like Core FFO and Same Store Cash NOI show positive trends, the year-over-year decline in net income and the nature of forward share sales suggest a cautious approach. The company is performing well operationally, but the decrease in net income warrants a 'hold' recommendation until further clarity on the impact of acquisitions and capital allocation strategies is provided.

Keywords

STAG Industrial, REIT, Industrial Real Estate, Q1 2026 Earnings, Core FFO, Same Store Cash NOI, Occupancy Rate, Acquisitions