Stag Industrial Q1 Earnings Call Highlights

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Stag Industrial (NYSE:STAG) reported first-quarter 2026 results against a backdrop of what absorption described arsenic improving U.S. concern leasing conditions, including a rebound successful request for larger-box abstraction and continued spot successful the mid-size conception wherever the institution is concentrated.

Leasing enactment remains robust arsenic request broadens

Chief Executive Officer Bill Crooker said concern leasing “velocity and measurement are steadfast some market-wide and wrong STAG’s portfolio,” adding that year-over-year absorption continues to improve. He noted that “the multi-year weakness successful request for large container merchandise has reversed,” with vacancy successful larger spaces declining successful galore markets, portion enactment has besides been beardown successful the 150,000 to 250,000 quadrate ft segment.

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Chief Financial Officer Matts Pinard reported Core FFO per stock of $0.65 for the quarter, up 6.6% from the anterior year. During the period, the institution commenced 37 leases crossed 6 cardinal quadrate feet, producing currency and straight-line leasing spreads of 20.9% and 39.6%, respectively. Pinard said this was a quarterly grounds for full operating portfolio quadrate feet leased.

Pinard said tenant request has been “strong” crossed aggregate industries, including aerial freight and logistics, retail, and containers and packaging. Retention for the 4th was 69.5%, and absorption maintained full-year retention guidance of 70% to 80%.

Data center-related leasing emerges arsenic a request operator

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Crooker highlighted a newer root of concern request tied to the accelerated acceleration of information halfway construction. He said third-party logistics providers supporting those developments person created “a caller conception of leasing request for accepted warehouse facilities.” Since the opening of 2025, STAG has signed 8 leases totaling 1.6 cardinal quadrate feet with information center-related tenants.

In effect to expert questions, Crooker said this enactment has been astir disposable successful Southeast and Midwest markets. He cited South Carolina—where helium said the institution signed 3 leases, including 2 successful Greenville-Spartanburg—as good arsenic Nashville, Wisconsin, Ohio, and Charlotte. Crooker added that the institution anticipates further request from information center-related tenants.

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He besides provided further details connected the tenant mix, describing a scope of uses supporting information halfway improvement and operations, including a 3PL “serving a Meta information halfway contract,” generator distribution, airy assembly related to powerfulness conversion systems, and manufacturing artillery components. Crooker said the weighted mean lease word for these information center-related leases is “a small implicit 8 years,” and that leasing spreads connected the 1.6 cardinal quadrate feet were “about 35%,” with “strong credits backing these leases arsenic well.”