Stag Industrial Announces Third Quarter 2026 Results

STAG Industrial posts strong Q3 growth with higher income, robust leasing, and new capital actions.

What the company is saying

STAG Industrial, Inc. is highlighting a substantial year-over-year improvement in profitability and operational performance for the third quarter of 2026. The company reports net income per share of $0.37, up from $0.26 in Q3 2025, and net income attributable to common stockholders of $70.7 million, up from $48.6 million. Management, led by President and CEO Bill Crooker, frames the quarter as a continuation of positive leasing and development momentum, citing improved industrial market fundamentals. The company emphasizes high occupancy rates (95.9% total, 96.2% operating portfolio), strong leasing activity with 3.6 million square feet commenced and a 23.8% cash rent increase, and a 90.3% retention rate on expiring leases. STAG also draws attention to its investment grade 'BBB' credit rating from S&P Global Ratings and new capital allocation moves: a $0.3875 per share dividend for Q4 2026 and a $250 million share repurchase authorization. The tone is confident, with forward-looking statements focused on sustaining operational strength and balance sheet health.

What the data suggests

The disclosed figures show clear operational and financial momentum. Net income per share rose 42.3% year-over-year for Q3 2026, and net income attributable to common stockholders increased 45.4% to $70.7 million. Core FFO per diluted share edged up to $0.66 from $0.65, and Same Store Cash NOI grew 3.5% to $159.9 million. The company acquired two fully-leased buildings totaling 1.1 million square feet for $107.9 million at a 6.9% cash cap rate, while selling four buildings of similar size for $67.9 million. Portfolio occupancy remains high, and leasing activity is robust, with 3.6 million square feet commenced in Q3 at a 23.8% cash rent increase and 90.3% retention. Year-to-date, STAG has acquired 10 buildings for $475.8 million and sold seven for $121.1 million. Liquidity stands at $546.0 million, and net debt to annualized run-rate adjusted EBITDA is 5.1x. The company’s capital markets activity includes refinancing $350 million in term loans and selling 3.4 million shares on a forward basis for $131.3 million. The data supports management’s positive narrative and shows no material gaps between claims and evidence.

Analysis

The announcement is highly factual and supported by detailed, realised financial and operational data for Q3 and year-to-date 2026. Key profitability metrics (net income, Core FFO, NOI, EBITDA) are disclosed alongside operational figures, acquisitions, and capital allocation actions. The majority of claims are realised and measurable, with only a small portion (dividend and share repurchase authorizations) being forward-looking, and these are standard board actions with clear timelines. There is no evidence of narrative inflation or exaggerated language; the tone is positive but proportionate to the results. Capital outlays for acquisitions are matched by immediate occupancy and income, and there are no claims of long-dated, uncertain returns. The gap between narrative and evidence is minimal.

Risk flags

• ●Execution risk remains around the company’s ability to deploy its $4.0 billion acquisition pipeline efficiently, as future acquisitions may not match the high occupancy or cap rates achieved in recent deals.
• ●Rising interest rates could impact refinancing costs after March 2027, when the fixed rate on the new $350 million term loan increases from 3.53% to 4.79%, potentially pressuring future cash flows.
• ●The share repurchase program is discretionary and not binding; actual repurchases will depend on market conditions and available liquidity, so the headline $250 million authorization may not translate into full capital return.
• ●Industrial real estate fundamentals could weaken if macroeconomic conditions deteriorate, which would affect occupancy, rent growth, and asset values, despite current strong metrics.

Bottom line

STAG Industrial’s Q3 2026 results confirm a strong operational and financial trajectory, with significant year-over-year gains in net income, FFO, and NOI. High occupancy, robust leasing spreads, and disciplined capital allocation underpin the company’s positive outlook. The new dividend and share repurchase program add flexibility for shareholder returns, but actual buybacks will depend on market conditions and competing uses of capital. The company’s investment grade rating and ample liquidity provide a solid foundation, though future acquisition execution and interest rate risk warrant monitoring. The most important takeaway is that STAG is delivering realized growth and maintaining balance sheet strength, with credible evidence supporting management’s optimistic tone.

Announcement summary

(NYSE:STAG) STAG Industrial, Inc. announced its financial and operating results for the quarter ended September 30, 2026. The company reported $0.37 of net income per basic and diluted common share for Q3 2026, compared to $0.26 for Q3 2025. Net income attributable to common stockholders was $70.7 million for Q3 2026, up from $48.6 million in Q3 2025. Core FFO per diluted share for Q3 2026 was $0.66, a 1.5% increase from $0.65 in Q3 2025. Same Store Cash NOI for Q3 2026 was $159.9 million, up 3.5% from $154.5 million in Q3 2025. The company acquired two buildings totaling 1.1 million square feet for $107.9 million in Q3 2026, with a Cash Capitalization Rate of 6.9% and a Straight-Line Capitalization Rate of 7.2%. Four buildings totaling 1.1 million square feet were sold for $67.9 million in Q3 2026. As of September 30, 2026, the Occupancy Rate was 95.9% for the total portfolio and 96.2% for the Operating Portfolio. Operating Portfolio leases commenced in Q3 2026 totaled 3.6 million square feet, with a Cash Rent Change of 23.8% and a Straight-Line Rent Change of 35.7%. Retention for 2.9 million square feet of expiring leases was 90.3%. Two leases totaling 68,534 square feet were signed across development projects. On August 6, 2026, STAG received a 'BBB' investment grade credit rating from S&P Global Ratings with a stable outlook. For the nine months ended September 30, 2026, net income attributable to common stockholders was $185.5 million, compared to $189.9 million for the same period in 2025. Net income per common share for the nine months was $0.97 basic and diluted, compared to $1.02 in 2025. Cash NOI for the nine months was $520.8 million, up from $481.1 million in 2025. Same Store Cash NOI for the nine months was $476.5 million, up from $458.4 million. Adjusted EBITDA re for the nine months was $488.7 million, up from $451.0 million. Core FFO for the nine months was $384.1 million, up from $360.5 million. Core FFO per share/unit for the nine months was $1.97 basic and $1.96 diluted, compared to $1.89 for both in 2025. Cash Available for Distribution for the nine months was $320.1 million, up from $306.3 million. The Same Store pool accounted for 89.8% of the total portfolio square footage as of September 30, 2026. In Q3 2026, the company acquired two buildings: one in Chicago, IL (442,987 sq ft, $44.5 million, 4.1-year lease term) and one in El Paso, TX (652,090 sq ft, $63.4 million, 5.2-year lease term), totaling 1,095,077 sq ft for $107.9 million. Year-to-date 2026, the company acquired 10 buildings totaling 4,474,589 sq ft for $475.8 million, with a weighted average lease term of 8.1 years, a Cash Capitalization Rate of 6.3%, and a Straight-Line Capitalization Rate of 7.0%. As of October 26, 2026, subsequent to quarter-end, the company acquired one building (710,400 sq ft) for $55.0 million and has a pipeline of 34.7 million sq ft (138 buildings) valued at $4.0 billion. For the nine months ended September 30, 2026, the company sold seven buildings totaling 2,006,367 sq ft for $121.1 million. In Q3 2026, Operating Portfolio leasing activity included 3,610,352 sq ft across 30 leases with a weighted average lease term of 5.0 years, Cash Base Rent of $6.91/SF, SL Base Rent of $7.18/SF, Lease Commissions of $1.46/SF, Tenant Improvements of $0.19/SF, Cash Rent Change of 23.8%, and SL Rent Change of 35.7%. Retention on renewal leases was 90.3%. For the nine months ended September 30, 2026, Operating Portfolio leasing activity included 15,226,654 sq ft across 103 leases, with a weighted average lease term of 5.8 years, Cash Base Rent of $6.39/SF, SL Base Rent of $6.77/SF, Lease Commissions of $1.51/SF, Tenant Improvements of $0.20/SF, Cash Rent Change of 21.2%, and SL Rent Change of 36.4%. Retention on renewal leases was 75.8%. Leases commenced for Value Add assets and first generation leasing totaled 560,519 sq ft in Q3 and 946,172 sq ft year-to-date. The company signed a 47,113 sq ft lease at 6980 Resource Drive in Reno, Nevada (now 62% leased) and a 21,421 sq ft lease at 2745 Piedmont Commerce Street SW in Charlotte, North Carolina (now 100% leased). Year-to-date, nine leases totaling one million sq ft were signed or commenced across development projects. On July 1, 2026, the company paid at maturity $50 million of fixed rate senior unsecured notes. On July 16, 2026, the company refinanced and combined $150 million term loan A and $200 million term loan F into a new $350 million term loan maturing January 16, 2032, with a fixed interest rate of 3.53% until March 2027 and 4.79% thereafter. The refinance resulted in a five basis points savings across all term loans and the Unsecured Credit Facility. As of September 30, 2026, Net Debt to Annualized Run Rate Adjusted EBITDA re was 5.1x and Liquidity was $546.0 million. In Q3 2026, the company sold 1.4 million shares on a forward basis under the ATM program at an average gross price of $39.10, or $54.3 million. As of October 26, 2026, 3.4 million shares were sold on a forward basis at an average gross price of $39.00 per share, totaling $131.3 million for the year. Total forward equity net proceeds of $70 million remain unsettled as of October 26, 2026. On October 26, 2026, the Board authorized a dividend of $0.3875 per share for Q4 2026, payable January 15, 2027, to holders of record as of December 31, 2026. The Board also authorized a new share repurchase program for up to $250 million of common stock, with no expiration date and no obligation to repurchase any amount.

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