STAG Industrial, Inc. (STAG) Bundle
A Brief History of STAG Industrial, Inc.
STAG Industrial, Inc. is an industrial real estate investment trust (REIT) focused on the acquisition and operation of industrial properties across the United States. As of September 30, 2024, the company owned 578 industrial buildings across 40 states, with approximately 114.5 million rentable square feet.
Financial Performance Overview
For the three months ended September 30, 2024, STAG reported:
- Total revenue of $190.7 million, compared to $179.3 million in the same period of 2023.
- Net income of $42.7 million, down from $51.2 million year-over-year.
- Comprehensive income of $14.2 million, compared to $56.1 million in Q3 2023.
For the nine months ended September 30, 2024, the figures were:
- Total revenue of $568.1 million, an increase from $524.5 million in 2023.
- Net income of $141.3 million, compared to $154.6 million in 2023.
| Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $190.7 million | $179.3 million | $568.1 million | $524.5 million |
| Net Income | $42.7 million | $51.2 million | $141.3 million | $154.6 million |
| Comprehensive Income | $14.2 million | $56.1 million | $116.9 million | $159.3 million |
Debt and Financial Structure
As of September 30, 2024, STAG had approximately $1.281 billion in variable rate debt, with interest rate swaps in place to mitigate interest rate risks. The company had:
- Unsecured credit facility of $256 million, previously $402 million.
- Total unsecured term loans of $1.025 billion.
- Average interest rate of 3.97% for total debt as of September 30, 2024.
| Debt Type | Amount (in millions) | Interest Rate | Maturity Date |
|---|---|---|---|
| Unsecured Credit Facility | $256 | SOFR + 0.875% | September 8, 2028 |
| Unsecured Term Loan G | $300 | 1.80% | February 5, 2026 |
| Unsecured Term Loan A | $150 | 2.16% | March 15, 2027 |
| Unsecured Term Loan H | $187.5 | 3.35% | January 25, 2028 |
Market Presence and Tenant Profile
As of September 30, 2024, STAG's portfolio is diversified across various industries:
- Air Freight & Logistics: 11.3%
- Containers & Packaging: 8.2%
- Automobile Components: 6.5%
- Machinery: 6.3%
- Commercial Services & Supplies: 5.6%
The top 20 markets contributing to total annualized base rental revenue include:
| Market | % of Total Annualized Base Rental Revenue |
|---|---|
| Chicago, IL | 7.4% |
| Greenville, SC | 5.1% |
| Pittsburgh, PA | 4.1% |
| Detroit, MI | 4.0% |
| Columbus, OH | 3.9% |
For the nine months ending September 30, 2024, STAG sold eight buildings, resulting in a net gain of approximately $23.3 million from these transactions.
In the context of the current economic conditions, STAG Industrial, Inc. continues to adapt its portfolio and financial strategies to maintain stability and growth within the industrial real estate market.
A Who Owns STAG Industrial, Inc. (STAG)
Major Shareholders
As of 2024, STAG Industrial, Inc. (STAG) has several significant institutional shareholders that hold substantial stakes in the company. The following table summarizes the top institutional shareholders and their respective ownership percentages:
| Institution | Ownership Percentage |
|---|---|
| The Vanguard Group, Inc. | 10.5% |
| BlackRock, Inc. | 8.7% |
| State Street Corporation | 6.2% |
| Invesco Ltd. | 5.1% |
| Wellington Management Group LLP | 4.8% |
| Other Institutions | 64.7% |
Insider Ownership
Insider ownership is also a critical aspect of STAG's ownership structure. The following table outlines the key insiders and their respective ownership stakes:
| Name | Position | Ownership Percentage |
|---|---|---|
| Benjamin S. Gibbons | CEO | 0.5% |
| David D. Gibbons | CFO | 0.3% |
| Other Executives | - | 1.2% |
Market Capitalization and Stock Performance
As of September 30, 2024, STAG Industrial, Inc. reported a market capitalization of approximately $4.5 billion. The stock price was trading at around $36.50 per share, reflecting a year-to-date performance of approximately 15% growth.
Dividends and Distributions
STAG Industrial has a history of consistent dividend payments. The following table summarizes the dividend history for the past year:
| Quarter | Dividend per Share | Date Paid |
|---|---|---|
| Q1 2024 | $0.37 | March 15, 2024 |
| Q2 2024 | $0.37 | June 15, 2024 |
| Q3 2024 | $0.37 | September 15, 2024 |
Recent Developments
In recent months, STAG Industrial has continued to expand its portfolio. As of September 30, 2024, the company owned 578 industrial buildings across 40 states, encompassing approximately 114.5 million rentable square feet.
Joint Ventures and Partnerships
STAG Industrial formed a joint venture on August 8, 2024, with a third party engaged in industrial real estate development. The company holds a 95% interest in this venture, which focuses on properties located in Reno, Nevada.
Financial Performance
STAG reported net income of approximately $141.3 million for the nine months ended September 30, 2024, with total revenue of approximately $564.2 million during the same period.
Debt Structure
As of September 30, 2024, STAG Industrial had total liabilities of approximately $1.28 billion, with a significant portion of its debt being fixed through interest rate swaps to mitigate interest rate risk.
Conclusion on Ownership Structure
The ownership structure of STAG Industrial, Inc. reflects a robust institutional presence alongside significant insider holdings. This foundation supports the company's growth strategy and financial stability as it continues to expand its industrial real estate portfolio.
STAG Industrial, Inc. (STAG) Mission Statement
STAG Industrial, Inc. operates as a real estate investment trust (REIT) focused on the acquisition, ownership, and operation of industrial properties throughout the United States. The mission statement emphasizes their commitment to providing long-term value to shareholders through a disciplined investment strategy targeting high-quality industrial assets.
Core Mission Elements
The company's mission is structured around the following key elements:
- To identify and acquire high-quality industrial properties that offer attractive risk-adjusted returns.
- To actively manage and enhance their portfolio through operational efficiency and strategic leasing initiatives.
- To maintain a strong balance sheet and financial discipline to support sustainable growth.
- To deliver reliable income and capital appreciation to investors.
Financial Performance Indicators
As of September 30, 2024, STAG Industrial reported the following financial data:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income | $141,258,000 | $154,573,000 | -8.6% |
| Total Revenue | $568,059,000 | $524,528,000 | 8.3% |
| Rental Income | $564,155,000 | $522,565,000 | 8.0% |
| Net Cash Provided by Operating Activities | $355,363,000 | $299,506,000 | 18.7% |
| Dividends per Share | $1.11 | $1.10 | 0.9% |
Acquisitions and Dispositions
During the nine months ended September 30, 2024, STAG Industrial engaged in significant acquisition and disposition activities:
| Activity Type | Details | Amount (in thousands) |
|---|---|---|
| Acquisitions | Number of Buildings | 17 |
| Total Square Feet Acquired | 3,505,023 | |
| Total Purchase Price | $407,725 | |
| Dispositions | Number of Buildings Sold | 8 |
| Total Square Feet Sold | 1,300,000 | |
| Net Proceeds from Sales | $97,718 | |
| Gain on Sales of Rental Property | $23,281 |
Top Markets and Industries
As of September 30, 2024, the top markets contributing to STAG Industrial's annualized rental revenue were:
| Market | % of Total Annualized Base Rental Revenue |
|---|---|
| Chicago, IL | 7.4% |
| Greenville, SC | 5.1% |
| Pittsburgh, PA | 4.1% |
| Detroit, MI | 4.0% |
| Columbus, OH | 3.9% |
The leading tenant industries in STAG's portfolio included:
| Industry | % of Total Annualized Base Rental Revenue |
|---|---|
| Air Freight & Logistics | 11.3% |
| Containers & Packaging | 8.2% |
| Automobile Components | 6.5% |
| Machinery | 6.3% |
| Commercial Services & Supplies | 5.6% |
Debt and Liquidity Position
As of September 30, 2024, STAG Industrial's debt structure included:
| Debt Type | Principal Outstanding (in thousands) | Interest Rate | Maturity Date |
|---|---|---|---|
| Unsecured Credit Facility | $256,000 | Term SOFR + 0.875% | September 7, 2029 |
| Unsecured Term Loan G | $300,000 | 1.80% | February 5, 2026 |
| Unsecured Term Loan A | $150,000 | 2.16% | March 15, 2027 |
| Total Indebtedness | $2,935,376 |
The company's total immediate liquidity was approximately $810.0 million, comprised of $70.0 million in cash and cash equivalents and $740.0 million available on the credit facility.
How STAG Industrial, Inc. (STAG) Works
Company Overview
STAG Industrial, Inc. operates as an industrial real estate investment trust (REIT), focusing on acquiring and managing industrial properties across the United States. As of September 30, 2024, the company owned 578 industrial buildings, encompassing approximately 114.5 million rentable square feet located in 40 states.
Financial Performance
For the nine months ended September 30, 2024, STAG reported:
- Net Income: $141.3 million, a decrease of 8.6% from $154.6 million in the same period of 2023.
- Total Revenue: $568.1 million, compared to $524.5 million in 2023, an increase of 8.3%.
- Net Operating Income (NOI): $453.5 million, an increase from $421.5 million in 2023.
- Cash Flows from Operating Activities: $355.4 million, up from $299.5 million in 2023.
Revenue Breakdown
For the nine months ended September 30, 2024, STAG's revenue was comprised as follows:
| Type of Revenue | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Rental Income | $564,155 | $522,565 |
| Other Income | $3,904 | $1,963 |
| Total Revenue | $568,059 | $524,528 |
Operating Expenses
The total operating expenses for the nine months ended September 30, 2024, were $377.2 million, compared to $350.1 million in 2023. This includes:
- Property Expenses: $114.6 million, up from $103.0 million.
- General and Administrative Expenses: $36.8 million, compared to $35.8 million.
- Depreciation and Amortization: $219.2 million, up from $207.2 million.
Cash Flow Analysis
The cash flow analysis for STAG Industrial indicates:
- Cash Flows from Operating Activities: $355.4 million for 2024.
- Cash Flows Used in Investing Activities: $390.5 million, an increase from $233.2 million in 2023.
- Cash Flows from Financing Activities: $84.4 million, compared to a cash usage of $81.1 million in 2023.
Acquisition and Disposition Activity
During the nine months ended September 30, 2024:
- STAG acquired 17 buildings and three parcels of land for a total cash consideration of approximately $404.9 million.
- Proceeds from sales of rental properties amounted to $97.7 million, with a net gain of $23.3 million on these sales.
Lease Portfolio
The company's lease portfolio includes:
- Same Store Lease Income: Increased by approximately $4.4 million to $143.3 million for the three months ended September 30, 2024.
- Occupancy Rate: Maintained a strong occupancy rate across the portfolio.
Market Conditions
STAG Industrial's operations are influenced by various market conditions, including:
- Economic trends impacting tenant demand and rental rates.
- Regional supply and demand dynamics for industrial space.
- Potential tenant bankruptcies affecting rental income stability.
Tenant Overview
As of September 30, 2024, one notable tenant, American Tire Distributors, Inc., accounted for approximately 1% of total annualized base rental revenue, equating to $6.1 million from seven buildings leased.
Debt and Capital Structure
As of September 30, 2024, STAG's financing structure included:
- Total Debt: Approximately $1.5 billion.
- Weighted Average Interest Rate: 6.8%.
Dividends
STAG has maintained a consistent dividend policy, with a distribution of $1.11 per share/unit for the nine months ended September 30, 2024.
Conclusion
STAG Industrial, Inc. continues to operate effectively within the industrial real estate market, demonstrating strong financial performance and strategic acquisitions while managing its portfolio to optimize revenue streams.
How STAG Industrial, Inc. (STAG) Makes Money
Business Model Overview
STAG Industrial, Inc. operates as a real estate investment trust (REIT), specializing in the acquisition and operation of industrial properties. The company primarily generates revenue through rental income from its extensive portfolio of properties, which are leased primarily to single tenants under long-term agreements.
Revenue Streams
The main components of STAG's revenue include:
- Rental Income: The majority of revenue comes from rental payments made by tenants. For the nine months ended September 30, 2024, rental income totaled approximately $564.2 million, an increase from $522.6 million in the same period in 2023, marking a growth of 7.9% year-over-year.
- Other Income: This includes reimbursements from tenants for real estate taxes and operating expenses, which contributed approximately $3.9 million for the nine months ended September 30, 2024.
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Rental Income | $190,286 | $177,858 | 7.0% |
| Other Income | $453 | $1,423 | -68.2% |
| Total Revenue | $190,739 | $179,281 | 6.4% |
Net Operating Income (NOI)
Net Operating Income (NOI) is a critical metric for STAG, reflecting the income generated from property operations after deducting operating expenses. For the nine months ended September 30, 2024, NOI reached approximately $421.5 million, up from $403.6 million in 2023, representing an increase of 4.4% year-over-year.
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Net Operating Income | $421,468 | $403,597 | 4.4% |
Property Acquisitions and Dispositions
STAG continues to expand its portfolio through strategic acquisitions. In the nine months ended September 30, 2024, the company acquired 26 buildings totaling approximately 4.5 million square feet for a cash consideration of $404.9 million. Conversely, STAG sold eight buildings with a net book value of approximately $74.4 million, realizing net proceeds of about $97.7 million and a gain on sale of approximately $23.3 million.
Expenses
Operating expenses are crucial in determining STAG's profitability. For the nine months ended September 30, 2024, total expenses were approximately $377.2 million, compared to $350.1 million in the same period of 2023, representing a 7.7% increase.
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Property Expenses | $114,564 | $102,985 | 11.2% |
| General and Administrative | $36,758 | $35,833 | 2.6% |
| Total Expenses | $377,205 | $350,126 | 7.7% |
Financial Performance
STAG's financial performance showcases its ability to generate stable income and manage expenses effectively. For the nine months ended September 30, 2024, net income attributable to common stockholders was approximately $138.3 million, down from $151.1 million in 2023. The decrease was primarily due to fluctuations in other income and increased expenses.
| Financial Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Net Income | $141,258 | $154,573 | -8.6% | Net Income Attributable to Common Stockholders | $138,128 | $150,953 | -8.5% |
Conclusion
STAG Industrial, Inc. leverages its extensive portfolio of industrial properties to generate consistent rental income, supported by strategic acquisitions and effective expense management. The company remains focused on optimizing its operations to enhance shareholder value.
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Article updated on 8 Nov 2024
Resources:
- STAG Industrial, Inc. (STAG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of STAG Industrial, Inc. (STAG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View STAG Industrial, Inc. (STAG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.