STAG Industrial, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.
For Q3 2024, STAG Industrial generated total revenue of $190.7 million, an increase from $179.3 million in Q3 2023. Rental income also rose to $190.3 million from $177.9 million year-over-year. However, net income for the quarter decreased to $42.7 million, down from $51.2 million in the same period last year, reflecting a 16.5% decline. This trend continued for the nine-month period, with net income falling to $141.3 million from $154.6 million in 2023, an 8.6% decrease. The decline in net income was attributed to increased operating expenses and a significant drop in gains from property sales.
The company’s total rental property, net, increased to $6.2 billion as of September 30, 2024, up from $6.0 billion at the end of 2023. This growth was driven by acquisitions, with STAG acquiring 17 buildings totaling 3.5 million square feet for $407.7 million during the nine months ended September 30, 2024. Notably, the company formed a joint venture for industrial real estate development in Reno, Nevada, holding a 95% interest.
Cash and cash equivalents saw a substantial increase, rising to $70.0 million from $20.7 million at the end of 2023. However, total liabilities also increased to $3.2 billion from $2.8 billion, primarily due to a rise in unsecured notes, which grew to $1.6 billion from $1.2 billion. The company’s total stockholders’ equity decreased to $3.3 billion from $3.4 billion.
In terms of operational performance, same-store rental income for the nine months ended September 30, 2024, increased by 4.6% to $526.4 million, driven by new leases and renewals. However, total operating expenses for the same period rose by 7.7% to $377.2 million, largely due to increases in real estate taxes and other operational costs.
The company maintained a strong liquidity position with approximately $810.0 million available, including $740.0 million from its unsecured credit facility. STAG Industrial continues to focus on its diversified portfolio strategy to mitigate risks associated with current economic uncertainties, despite moderating demand in the industrial market.
About STAG Industrial, Inc.
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