On July 30, 2024, Stag Industrial Inc (STAG, Financial) released its 8-K filing detailing the financial and operating results for the second quarter ended June 30, 2024. Stag Industrial Inc is a real estate investment trust (REIT) specializing in the acquisition and operation of single-tenant industrial properties across the United States, with a significant focus on warehouse and distribution buildings.
Key Financial Highlights
Stag Industrial Inc reported a net income of $0.33 per basic and diluted common share for Q2 2024, surpassing the analyst estimate of $0.30 per share. This represents a 13.8% increase from the $0.29 per share reported in Q2 2023. The company also reported $59.7 million in net income attributable to common stockholders, a 15.9% increase from $51.6 million in the same period last year.
Core Funds From Operations (Core FFO) per diluted share rose to $0.61, an 8.9% increase from $0.56 in Q2 2023. Cash Net Operating Income (Cash NOI) also saw a significant increase of 10.3%, reaching $148.4 million compared to $134.6 million in the previous year.
Operational Achievements
Stag Industrial Inc achieved an occupancy rate of 97.1% on its total portfolio and 97.5% on its operating portfolio as of June 30, 2024. The company commenced operating portfolio leases totaling 3.5 million square feet in Q2 2024, resulting in a cash rent change of 36.8% and a straight-line rent change of 51.8%.
During the quarter, Stag Industrial Inc acquired ten buildings totaling 2.2 million square feet for $225.6 million, with a cash capitalization rate of 6.7% and a straight-line capitalization rate of 7.0%. The company also sold seven buildings totaling 1.1 million square feet for $78.2 million.
Financial Metrics and Analysis
Stag Industrial Inc's financial performance is highlighted by several key metrics:
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Net Income Attributable to Common Stockholders ($000s) | $59,737 | $51,553 | 15.9% |
| Net Income per Common Share (Basic and Diluted) | $0.33 | $0.29 | 13.8% |
| Cash NOI ($000s) | $148,432 | $134,585 | 10.3% |
| Core FFO per Share/Unit (Diluted) | $0.61 | $0.56 | 8.9% |
| Cash Available for Distribution ($000s) | $95,119 | $87,168 | 9.1% |
Commentary and Outlook
"STAG has delivered exceptional operating results through the first half of 2024," said Bill Crooker, President and Chief Executive Officer of the Company. "We will leverage these successful operating results along with our liquidity to drive further growth this year and next."
Stag Industrial Inc's strong financial performance in Q2 2024 underscores its effective operational strategies and robust market position. The company's ability to achieve high occupancy rates and significant rent changes highlights its competitive advantage in the industrial real estate sector. Additionally, the acquisition and disposition activities demonstrate Stag Industrial Inc's strategic approach to portfolio management, ensuring sustained growth and profitability.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Stag Industrial Inc for further details.
