The following is a summary of the STAG Industrial, Inc. (STAG) Q3 2024 Earnings Call Transcript:
Financial Performance:
STAG Industrial reported core FFO per share of $0.60 for Q3 2024, marking a 1.7% increase from the previous year.
Net debt to annualized run rate adjusted EBITDA was reported at 5.1x.
Cash available for distribution totaled $88 million for the quarter, with $75 million retained for various purposes after dividends.Year-to-date, same-store cash NOI growth was 6.1%, with Q3 alone seeing a growth of 4.4%.
Core FFO guidance for the year was revised to a range of $2.38 to $2.40 per share, reflecting a slight increase.
Business Progress:
Acquisition activities gained momentum with $130 million in volume for Q3, including a $78.1 million acquisition of a five property portfolio in Boston area.
Over 2.1 million square feet of development activity is underway across nine buildings in the U.S., including a joint venture for a 284,000 square foot distribution facility.
A total of 20 leases comprising 3.3 million square feet were commenced during the quarter.
Opportunities:
Continued market rent growth with an annual projection of about 4%.
The 2024 leasing achievements and the expected leasing activity for 2025 present ongoing opportunities for revenue growth from existing and new properties.
The active acquisition market and the strategic positioning of the newly acquired portfolios in supply-constrained areas highlight potential for capitalizing on market dynamics.
Risks:
American Tire Distributors, representing 1% of annualized base rent, entered into Chapter 11 bankruptcy, which might pose risks associated with lease affirmations or rejections moving forward.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
