10-Q · July 28, 2026
STAG delivered Q2 revenue of $224.369 million, up 8.1% year over year, and GAAP diluted EPS of $0.28, while same-store NOI grew 2.2%. Leasing spreads and acquisition NOI were strong, but same-store occupancy fell to…
Earnings analysis · 10-Q
STAG earnings analysis
Filed October 27, 2026 · Our reading of the company's report
The latest report
STAG delivered a strong third quarter, with revenue up 9.4% year over year to $231.045 million, diluted EPS up to $0.37 from $0.26, and NOI up 9.4% to $184.809 million. Leasing spreads and acquisition contributions…
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STAG delivered a strong third quarter, with revenue up 9.4% year over year to $231.045 million, diluted EPS up to $0.37 from $0.26, and NOI up 9.4% to $184.809 million. Leasing spreads and acquisition contributions supported growth, but same-store occupancy declined to 97.0%, interest expense rose 23.5%, and nine-month net income fell 2.4% to $189.483 million due partly to higher financing costs and lower property-sale gains. Liquidity was $546.0 million and debt maturities were improved through loan amendments, although acquisition spending continued to exceed operating cash flow and increased reliance on financing.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.37
- Operating margin
- 38.4%
- Segment
- Single operating segment: real estate operations; Q3 2026 revenue was $231.045 million and NOI was $184.809 million.
What stood out
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Revenue and EPS accelerated
Q3 revenue increased 9.4% year over year to $231.045 million from $211.121 million and rose 3.0% sequentially from $224.369 million in Q2 2026. Net income attributable to common stockholders increased 45.4% year over year to $70.671 million, and diluted EPS rose to $0.37 from $0.26.
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NOI growth remained positive
Total NOI increased 9.4% year over year to $184.809 million from $168.953 million. Same-store NOI increased 2.5% to $164.131 million, supported by same-store rental income growth of 3.5% to $205.527 million.
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Leasing spreads stayed robust
Leasing momentum was strong: Q3 leases commenced on 3.610 million square feet with a 23.8% cash rent change and 35.7% straight-line rent change. Renewal leases represented 2.591 million square feet and achieved a 21.4% cash rent change.
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Operating cash flow grew
Operating cash flow increased 4.7% year over year to $375.875 million for the first nine months. The company invested $113.663 million in land, buildings and improvements and $424.461 million in acquisitions, while receiving $117.260 million from property sales.
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External growth expanded the portfolio
The company acquired 10 buildings totaling 4.475 million square feet for $496.301 million in the first nine months, including two buildings for $107.934 million in Q3. Acquired and disposed properties contributed $34.3 million and $1.4 million of nine-month NOI, respectively.
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Liquidity and maturities improved
Liquidity remained meaningful despite elevated investment: immediate liquidity was $546.0 million, including $12.2 million of cash and $533.8 million of revolver availability. Management also extended a $350.0 million term loan maturity to January 16, 2032 and reduced applicable spreads by five basis points.
What to watch
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Leverage increased as cash declined
Debt principal increased to $3.417 billion from $3.266 billion at year-end 2025, while cash and cash equivalents declined to $12.222 million from $14.910 million. The unsecured credit facility balance was $463.0 million, up from $262.0 million.
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Interest-rate exposure remains material
Interest expense rose 23.5% year over year to $39.126 million in Q3 and increased 15.0% to $112.506 million for the first nine months. The company had $1.488 billion of variable-rate debt, including $463.0 million on the unhedged unsecured credit facility; a 100-basis-point rate increase would have raised nine-month interest expense by approximately $3.5 million.
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Occupancy and property costs pressured results
Same-store occupancy declined to 97.0% from 97.7% a year earlier, while same-store property expenses increased 7.2% to $41.536 million. Management also reported that base rent was reduced by approximately $4.1 million in Q3 due to tenant vacancies.
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Near-term lease rollover risk
Leases representing 7.6% of total annualized base rental revenue expire from October 1, 2026 through September 30, 2027. The filing identifies $76.139 million of annualized base rental revenue associated with leases expiring in calendar 2027.
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Acquisition spending exceeded cash generation
Investment outflows exceeded operating cash generation: nine-month investing cash use was $494.972 million versus operating cash flow of $375.875 million. Acquisitions alone used $424.461 million, increasing reliance on debt, equity and property dispositions.
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Macro and credit uncertainty persist
The filing states there were no material changes to the risk factors in the 2025 Form 10-K. However, management cites recession or stagflation risk, tighter credit conditions and potentially rising vacancy rates; same-store occupancy was 97.0% as of September 30, 2026.
Management's outlook
No quantitative revenue or EPS guidance was provided in the 10-Q. Management states that 2026 acquisition activity has been slow relative to its historical pace amid macroeconomic and credit-market uncertainty, while industrial demand is gradually recovering toward its long-term average.
Earlier filings 2
10-Q · April 28, 2026
STAG reported total operating revenue of $224,207 (in thousands) for Q1 2026, up $18,633 (9.1%) vs. Q1 2025, driven by same-store rental income growth. Same-store NOI rose 4.1% and total portfolio NOI increased 9.3% to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.