STAG Industrial, Inc. Q1 FY2026 earnings call

• Industrial leasing velocity and volume were healthy both market-wide and within Stagg's portfolio, with multi-year weakness in big box product demand reversed and strong activity in the 150,000 to 250,000 sq ft segment.
• Market benefiting from data center construction, with 8 leases totaling 1.6 million sq ft to data center-related tenants since early 2025.
• New supply subdued, with ~40% of new supply for build-to-suit projects above historical averages.
• Acquired a 750,000 sq ft building in Platte City, Missouri for $80.7 million in February, 100% leased for 12 years with 3.2% annual escalators.
• Development platform has 7 buildings/1.8 million sq ft of activity, with two new development leases signed post-quarter end.

Industrial leasing velocity and volume were healthy, with multi-year weakness in big box product demand reversed, data center-related leasing adding 1.6 million sq ft from 8 leases since early 2025, new supply subdued.

• Core FFO per share was $0.65 for Q1, up 6.6% y-o-y.
• Leverage remains low, net debt to annualized run rate adjusted EBITDA at 5 times.
• Retention guidance 70% - 80%, 79% of 2026 leasing goal addressed.
• Cash leasing spreads guidance 18% - 20%, maintained same-store cash growth guidance in Hawaii.
• Maintained all 2026 guidance.

• Higher lease expiration year driving occupancy guidance, with 9 - 12 months lease-up time for vacant assets.
• Market and economic uncertainties affecting forward-looking statements.

Q: Craig Melman from Citigroup asked about quicker backfills on vacant spaces and data center-related leases' markets.

A: Bill Crooker responded on lease-up assumptions and data center-related leases in Southeast Midwest markets.

Q: Michael Griffin from Evercore asked on market rent growth expectations.

A: Bill Crooker said maintained 0% - 2% market rent growth guidance.

Q: Nick Filman from Baird asked on acquisition front.

A: Bill and Mike Chase discussed acquisition criteria, land acquisition in Dallas, and pipeline.

Q: Jason Belker from Wells Fargo asked on same-store cash and embedded rent increases.

A: Matt Spenard and Bill Crooker responded on same-store cash guidance and weighted average escalator.

Q: Eric Borden from BMO asked on occupancy cadence and data center tenant underwriting.

A: Matt Spenard and Bill Crooker responded on occupancy cadence and data center tenant underwriting.

Q: Jessica Zing from Green Street asked on data center tenant sustainability and market strengths/weaknesses.

A: Bill Crooker responded on data center tenant roles and market analysis.

Q: Henry Noel from RBC Capital Markets asked on private market valuation trends.

A: Bill Crooker responded on cap rates and portfolio premiums