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Dec 31, 2019

STAG Q4 2019 Earnings Report

STAG Industrial reported mixed results for Q4 2019, with a decrease in net income but growth in core FFO and cash NOI.

Key Takeaways

STAG Industrial reported a decrease in net income attributable to common stockholders for Q4 2019, but experienced growth in Core FFO and Cash NOI. The company also achieved a high occupancy rate and made significant acquisitions during the quarter.

Net income attributable to common stockholders decreased to $16.1 million compared to $44.3 million in Q4 2018.

Core FFO per diluted share increased by 2.2% to $0.47 compared to Q4 2018.

Cash NOI increased by 21.7% to $89.0 million compared to Q4 2018.

The company acquired 23 buildings for $455.9 million with a cash capitalization rate of 6.1%.

Total Revenue
$111M
Previous year: $78.4M
+41.6%
EPS
$0.47
Previous year: $0.46
+2.2%
Occupancy Rate
95%
Cash and Equivalents
$9.04M
Total Assets
$4.16B

STAG

STAG

Forward Guidance

While the earnings report does not contain specific forward guidance, the CEO's comments suggest a positive outlook for 2020, driven by acquisition volume and internal growth.

Positive Outlook

  • Record level of acquisition volume achieved.
  • Continued acceleration of internal growth.
  • Significant momentum entering 2020.
  • Raised net proceeds of $311.0 million of equity through a follow-on offering during the first quarter of 2020.
  • High occupancy rate maintained.

Challenges Ahead

  • Decrease in net income per share compared to the previous year.
  • Increased expenses.
  • Loss on impairments.
  • Total other income decreased.
  • Decrease in same store NOI.