STAG earnings analysis
What we found in STAG's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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 96.0% and interest expense rose 11.5%. Liquidity remains substantial at $613.7 million, although the balance sheet carries $3.453 billion of debt and acquisition spending drove a $408.402 million six-month investing outflow.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and NOI grew strongly
- Q2 total operating revenue rose 8.1% year over year to $224.369 million from $207.593 million, while total portfolio NOI increased 7.3% to $179.341 million.
- Internal leasing spreads remained robust
- Same-store rental income increased 3.4% to $204.427 million. New and renewal leases commencing in Q2 produced a 19.8% cash-rent increase across 5.620 million square feet.
- Acquisitions accelerated portfolio growth
- Acquisitions added meaningfully to earnings: acquired properties contributed $10.9 million of Q2 NOI, versus $0.9 million a year earlier. The company acquired 7 buildings for $307.654 million during Q2.
- GAAP earnings increased year over year
- Quarterly GAAP net income rose 5.8% to $54.013 million, or $0.28 diluted EPS, from $51.063 million and $0.27 diluted EPS in Q2 2025.
- Operating cash flow and liquidity improved
- Six-month operating cash flow increased 6.0% to $228.376 million. Immediate liquidity was $613.7 million at June 30, comprising $65.9 million of cash and $547.8 million of revolver availability.
- Post-quarter refinancing extended maturities
- Management refinanced its $150.0 million term loan into a $350.0 million term loan maturing January 16, 2032, and reduced applicable spreads by 5 basis points on that loan and several credit facilities.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Occupancy decline pressured same-store rent
- Same-store occupancy declined 180 basis points year over year to 96.0% at June 30, 2026 from 97.8%. Tenant vacancies reduced same-store base rent by approximately $3.3 million in Q2.
- Higher interest expense and revolver exposure
- Q2 interest expense rose 11.5% to $37.495 million from $33.618 million, principally due to $550.0 million of unsecured notes issued in June 2025. The unsecured credit facility had a $449.0 million balance at June 30, 2026.
- Debt maturities and residual floating-rate risk
- Total debt principal was $3.453 billion, with 8.7% maturing in the next 12 months. A 100-basis-point increase in rates on the $449.0 million revolver balance would have raised six-month interest expense by approximately $2.2 million.
- Capital deployment is funding-intensive
- Six-month investing cash outflow increased to $408.402 million from $89.629 million, driven partly by $388.367 million of acquisitions. Management says 2026 acquisition activity has nevertheless been slow relative to its historical pace because of macro uncertainty.
- No formal risk-factor updates; macro risks persist
- The filing reports no material changes to risk factors from the 2025 Form 10-K. However, management cites evolving trade policy, geopolitical tensions and macro conditions that could tighten credit, weaken tenant cash flows and raise vacancies.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.28
- Gross margin
- 79.9%
- Operating margin
- 37.0%
What they said about what is next.
The 10-Q contains no quantitative revenue, EPS, FFO, acquisition, or capital-spending guidance. Management states that acquisition activity in 2026 has been slow relative to its historical pace amid macroeconomic and credit-market uncertainty.
The filing reads about the same as the one before it.
What came before.
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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