Key Highlights

● Total revenue rose about 8 per cent year over year to $224.4 million.

● Core funds from operations rose 3.2 per cent to $0.65 per diluted share.

● Cash rent on new and renewal leases rose 19.8 per cent in the quarter.

● The company acquired seven buildings totalling 2.6 million square feet for $287.1 million.

STAG Industrial (NYSE:STAG), a real estate investment trust focused on industrial properties, reported second-quarter 2026 results on 28 July 2026 for the quarter ended 30 June. Total revenue was $224.4m, up about 8 per cent from $207.6m a year earlier. Net income attributable to common stockholders was $52.9m, or $0.28 per share, compared with $50.0m, or $0.27. Core funds from operations, the measure most commonly used to assess REIT earnings, was $0.65 per diluted share, up 3.2 per cent from $0.63. For the first half, Core FFO was $1.30 per share, up 4.8 per cent from $1.24. Cash available for distribution rose 2.6 per cent to $101.4m, and same-store cash net operating income increased 3.4 per cent to $158.8m. These are reported figures, and the company did not include full-year guidance in the release reviewed.

Leasing, acquisitions and balance sheet

Operational metrics were firm. Occupancy at 30 June was 94.5 per cent for the total portfolio and 95.5 per cent for the operating portfolio, and renewal retention for the quarter was 75.7 per cent across 6.0 million square feet of expiring leases. Leases commencing in the operating portfolio carried a cash rent change of 19.8 per cent and a straight-line change of 33.7 per cent, which indicates that in-place rents were below current market levels on those spaces. The company acquired seven buildings totalling 2.6 million square feet for $287.1m at a 6.1 per cent cash capitalisation rate, and sold two buildings for $23.1m. Year-to-date acquisitions total eight buildings for $367.9m, adding both earnings potential and funding needs. Net debt to annualised run-rate adjusted EBITDAre was 5.2 times, and liquidity stood at $613.7m. On 16 July 2026 the company combined two term loans into a single $350m term loan maturing in January 2032, carrying a fixed rate of 3.53 per cent until March 2027 and 4.79 per cent afterwards. The step-up in that rate illustrates how refinancing costs can feed through to earnings over time.

The dividend and what supports it

On 27 July 2026 the board authorised a dividend of $0.3875 per share for the third quarter of 2026, payable in cash on 15 October 2026 to holders of record on 30 September 2026. Taking that amount at a quarterly pace gives $1.55 a year, close to the $1.56 shown in the spreadsheet figure supplied for this review, which we treat as an unverified snapshot; the release does not itself state the payment frequency. Against Core FFO of $0.65 per share in the quarter, the declared amount represents a payout of roughly 60 per cent of Core FFO, an editorial calculation. A payout below full earnings leaves retained cash for acquisitions, though dividends from REITs depend on leasing, financing costs and board decisions, and are never guaranteed.

Leverage Leaves Less Room Than Some Peers

STAG Industrial's leasing metrics point to rising demand, with occupancy at 94.5 per cent and rent growth well above in-place levels on renewed space, and the company kept acquiring through the quarter. Net debt to annualised adjusted EBITDAre of 5.2 times leaves less cushion than a more conservatively financed peer, and a new $350 million term loan carries a rate that steps up from 3.53 per cent to 4.79 per cent in 2027, a reminder of how refinancing costs can feed through to future earnings.