STAG Industrial's New Property Metrics Enhance Industry Standards

Author: Addison Perry Updated: 04-01-2025 04:44 PM

STAG Industrial Updates Property Metrics for Better Comparability

STAG Industrial, Inc. (NYSE: STAG) recently announced a significant improvement in its approach to property metrics that aim to enhance standards across the industrial real estate sector. This initiative is a collaboration among several major industrial real estate investment trusts (REITs), ensuring a more unified methodology in calculating key property metrics.

Coalition of Industrial REITs

The coalition includes esteemed companies such as EastGroup Properties, Inc., First Industrial Realty Trust, Inc., and Prologis, Inc. Collectively, they are enhancing the way key non-GAAP property metrics are calculated, which has become increasingly vital for investors and stakeholders looking for transparency and consistency in the sector.

Reaffirming Key Metrics

This new initiative builds on a harmonization effort that began in 2018. The Industrial REIT Group has reiterated its commitment to defining property stabilization, occupancy rates, rent changes, and customer retention with greater precision. As part of this effort, only properties that have been stabilized in both the current and previous periods will be included in the annual same-store portfolio.

Consistency in Reporting

The goal is clear: provide a consistent framework for all members of the Industrial REIT Group. By aligning their non-GAAP metrics with these new methodologies, STAG Industrial and its partners aim to facilitate easier comparisons across their performance measures. This consistency is crucial in helping investors make more informed decisions.

Impact of Updated Methodology

According to STAG Industrial, the methodologies that have now been adopted should not significantly affect the company’s previously reported non-GAAP metrics for periods before 2025. They believe that while some minor distinctions may exist in the calculation methods used, the unified goal of enhancing comparability remains paramount.

About STAG Industrial, Inc.

STAG Industrial, Inc. is dedicated to acquiring, owning, and operating industrial properties across the country. Currently, the Company boasts a robust portfolio consisting of over 591 buildings across 41 states, comprising approximately 116.6 million rentable square feet. This diverse array of properties positions STAG Industrial as a key player in the market.

Exploring Further Opportunities

The evolving landscape of industrial real estate is full of potential. STAG Industrial, Inc. remains poised to leverage this momentum. By standardizing how property metrics are reported and understood, the company is actively working to enhance its value proposition and strengthen investor confidence.

Frequently Asked Questions

What is the purpose of the updated property metrics?

The updated property metrics aim to enhance comparability in reporting across the industrial REIT sector.

Who is part of the coalition for the updated metrics?

The coalition includes STAG Industrial, EastGroup Properties, First Industrial Realty Trust, and Prologis.

How does this initiative impact STAG Industrial's reporting?

The updated metrics are expected to provide consistency in reporting without materially impacting previously reported non-GAAP metrics before 2025.

What types of properties are included in the same-store portfolio?

Only properties that were stabilized in both the current and prior periods will be included, excluding value-add and redevelopment properties.

How does STAG Industrial plan to utilize these methodologies?

STAG Industrial plans to align its non-GAAP metrics with the latest methodologies to ensure better consistency in its disclosures.

About The Author

Hello, I'm 30-year-old financial writer and expert Addison Perry, and I love to simplify the intricacies of the financial industry. I've committed myself over the years to deciphering the subtleties of investing techniques and economic trends and converting them into doable guidance that anybody can use. My goal with writings and books is to make money interesting and approachable so that readers may take charge of their financial futures.

My enthusiasm to empowerment and education has propelled me through my career in finance. I write because I think that everyone should be able to make educated financial decisions, and I try to provide that. Regardless of experience level with investing, my work is intended to provide insightful analysis and practical advice to enable you to thrive in the always changing financial environment. I appreciate you traveling with me toward success and financial literacy.

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