Is STAG Industrial Still Appealing Following Robust 2025 Gains and DCF Valuation Discrepancy?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 16 2025
0mins
Should l Buy STAG?
Source: Yahoo Finance
Current Performance: STAG Industrial's stock has seen a slight decline recently but remains up 13.8% year-to-date, with strong long-term gains of 32.6% over three years and 46.9% over five years, driven by robust industrial real estate demand and e-commerce growth.
Valuation Insights: A Discounted Cash Flow (DCF) analysis indicates that STAG Industrial is undervalued by 29.2%, with an intrinsic value of approximately $53.04 per share compared to its current trading price.
Price-to-Earnings Ratio: STAG's price-to-earnings (PE) ratio of 29.1x is above the broader Industrial REIT average but below its direct peers, suggesting it is modestly undervalued relative to its Fair Ratio of 31.5x.
Investment Narratives: Investors can create different narratives around STAG Industrial's business drivers, leading to varied forecasts for future performance and fair value, highlighting the subjective nature of investment decisions based on the same data.
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Analyst Views on STAG
Wall Street analysts forecast STAG stock price to rise
10 Analyst Rating
3 Buy
7 Hold
0 Sell
Moderate Buy
Current: 37.280
Low
38.00
Averages
40.90
High
46.00
Current: 37.280
Low
38.00
Averages
40.90
High
46.00
About STAG
STAG Industrial, Inc. is a real estate investment trust (REIT), which is focused on the acquisition, ownership and operation of industrial properties throughout the United States. Its platform is designed to identify properties for acquisition that offer relative value across CBRE-EA Tier 1 industrial property types and tenants through the principled application of its proprietary risk assessment model; provide growth through sophisticated industrial operation and an attractive opportunity set, and capitalize on its business appropriately given the characteristics of its assets. The Company's portfolio consists of approximately 590 buildings in 41 states with approximately 116.6 million rentable square feet. It owns all of its properties and conducts substantially all of its business through STAG Industrial Operating Partnership, L.P. (Operating Partnership).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
STAG Industrial Reports Strong Q4 2025 Earnings with Positive Outlook
- Significant Performance Growth: STAG Industrial reported a core FFO per share of $0.66 for Q4 2025 and $2.55 for the full year, reflecting a 6.3% increase compared to 2024, indicating strong performance and enhanced profitability in the market.
- Robust Leasing Activity: The company completed 31 leases totaling 3 million square feet in Q4, with cash leasing spreads of 16.3%, demonstrating strong market demand, and projecting cash leasing spreads of 18% to 20% for 2026.
- Active Acquisition Strategy: Acquisition volume reached $285.9 million in Q4, followed by an additional $80.6 million building acquisition, showcasing the company's proactive strategy in expanding its asset portfolio, with 2026 acquisition guidance set between $350 million and $650 million.
- Dividend Increase and Payment Frequency Change: STAG announced a 4% increase in dividends, the largest since 2014, while changing the payment frequency from monthly to quarterly, reflecting confidence in future cash flows and commitment to shareholder returns.
See More
STAG STAG Q4 2025 Earnings Call Transcript
See More
High Yield Potential of Real Estate Investment Trusts
- Digital Realty Trust Overview: Digital Realty Trust (DLR) owns over 300 data centers across 55 metropolitan areas, serving tech giants like Microsoft, Amazon, and Google, which diversifies its customer base and positions it for long-term growth in cloud computing and AI, with projected revenue of $6.65 billion in 2026, an 8.8% year-over-year increase.
- High Occupancy and Yield: With over 80% occupancy across its data centers, Digital Realty Trust offers a 2.83% dividend yield, providing stable cash flow for investors and reflecting its strong market position in the rapidly growing tech sector.
- Stag Industrial's Market Position: Stag Industrial (STAG) operates 601 warehouses across 41 states, with major clients including Amazon, FedEx, and UPS, and reported a 16.2% year-over-year net income increase in Q3 2025, indicating robust demand and growth potential in the logistics sector.
- Stable Dividend Returns: Stag Industrial Trust's 3.46% dividend yield and 95.8% overall occupancy rate ensure predictable cash flow, enhancing its appeal as a long-term investment, particularly amid increasing economic uncertainty.
See More
STAG Industrial Reports Strong Q4 Earnings Driven by Leasing Activity
- Earnings Beat: STAG Industrial reported a core FFO of $0.66 per share for Q4, exceeding analyst expectations of $0.64, and up from $0.65 in Q3 and $0.61 a year ago, indicating sustained profitability growth.
- Significant Revenue Growth: The company achieved revenue of $220.9 million in Q4, surpassing the $211.2 million consensus, and increasing from $210 million in the prior quarter and $199.3 million a year ago, reflecting strong market demand recovery.
- Accelerated Leasing Activity: During Q4, STAG commenced leases totaling 3.0 million square feet, with cash rent change of 16.3% and straight-line rent change of 27.4%, demonstrating heightened activity in the leasing market and enhancing future revenue sustainability.
- Strategic Investments and Acquisitions: The company acquired seven buildings totaling 2.2 million square feet for $285.9 million at a cash capitalization rate of 6.4%, while selling eight buildings totaling 1.6 million square feet for $88.8 million, optimizing its asset portfolio.
See More
STAG Industrial Reports Strong Q4 Earnings Beat
- Strong Financial Performance: STAG Industrial reported a Q4 FFO of $0.66, beating estimates by $0.02, with revenue of $220.9 million reflecting a 10.8% year-over-year increase, surpassing expectations by $9.66 million, indicating robust financial health.
- Cash NOI Growth: The Same Store Cash NOI for Q4 reached $148.5 million, a 5.4% increase from $140.8 million in Q4 2024, while the annual Same Store Cash NOI totaled $579.4 million, up 4.3% from $555.6 million in 2024, showcasing stability and growth potential in the leasing market.
- Asset Acquisition and Sales: In Q4 2025, STAG acquired seven buildings totaling 2.2 million square feet for $285.9 million at a cash capitalization rate of 6.4%, while selling eight buildings totaling 1.6 million square feet for $88.8 million, optimizing its asset portfolio.
- Leasing and Occupancy Rates: As of December 31, 2025, the overall portfolio occupancy rate was 96.4%, with the operating portfolio at 97.2%, and the company commenced leases totaling 3.0 million square feet in Q4, with a cash rent change of 16.3%, reflecting strong market demand.
See More
STAG Industrial Set to Release Q4 Earnings on February 11
- Earnings Announcement Schedule: STAG Industrial is set to announce its Q4 2023 earnings on February 11 after market close, with consensus estimates predicting a Funds From Operations (FFO) of $0.64 per share and revenue of $211.24 million, indicating the company's ongoing performance in generating stable income.
- Growth Potential Analysis: STAG Industrial's growth rate surpasses its price-to-earnings multiple, suggesting strong market competitiveness in the current economic climate, which may attract more investor interest in its long-term growth potential.
- Strong Leasing Performance: The company has demonstrated robust leasing performance, reflecting improved market demand and portfolio stability, which not only strengthens its revenue base but also lays a solid foundation for future expansion.
- Historical Performance Review: In Q3, STAG Industrial exceeded earnings expectations, with consistent monthly income providing confidence to investors and further solidifying its position in the Real Estate Investment Trust (REIT) sector.
See More
STAG Industrial Reports Strong Q4 2025 Earnings with Positive Outlook
- Significant Performance Growth: STAG Industrial reported a core FFO per share of $0.66 for Q4 2025 and $2.55 for the full year, reflecting a 6.3% increase compared to 2024, indicating strong performance and enhanced profitability in the market.
- Robust Leasing Activity: The company completed 31 leases totaling 3 million square feet in Q4, with cash leasing spreads of 16.3%, demonstrating strong market demand, and projecting cash leasing spreads of 18% to 20% for 2026.
- Active Acquisition Strategy: Acquisition volume reached $285.9 million in Q4, followed by an additional $80.6 million building acquisition, showcasing the company's proactive strategy in expanding its asset portfolio, with 2026 acquisition guidance set between $350 million and $650 million.
- Dividend Increase and Payment Frequency Change: STAG announced a 4% increase in dividends, the largest since 2014, while changing the payment frequency from monthly to quarterly, reflecting confidence in future cash flows and commitment to shareholder returns.
See More
STAG STAG Q4 2025 Earnings Call Transcript
See More
High Yield Potential of Real Estate Investment Trusts
- Digital Realty Trust Overview: Digital Realty Trust (DLR) owns over 300 data centers across 55 metropolitan areas, serving tech giants like Microsoft, Amazon, and Google, which diversifies its customer base and positions it for long-term growth in cloud computing and AI, with projected revenue of $6.65 billion in 2026, an 8.8% year-over-year increase.
- High Occupancy and Yield: With over 80% occupancy across its data centers, Digital Realty Trust offers a 2.83% dividend yield, providing stable cash flow for investors and reflecting its strong market position in the rapidly growing tech sector.
- Stag Industrial's Market Position: Stag Industrial (STAG) operates 601 warehouses across 41 states, with major clients including Amazon, FedEx, and UPS, and reported a 16.2% year-over-year net income increase in Q3 2025, indicating robust demand and growth potential in the logistics sector.
- Stable Dividend Returns: Stag Industrial Trust's 3.46% dividend yield and 95.8% overall occupancy rate ensure predictable cash flow, enhancing its appeal as a long-term investment, particularly amid increasing economic uncertainty.
See More
STAG Industrial Reports Strong Q4 Earnings Driven by Leasing Activity
- Earnings Beat: STAG Industrial reported a core FFO of $0.66 per share for Q4, exceeding analyst expectations of $0.64, and up from $0.65 in Q3 and $0.61 a year ago, indicating sustained profitability growth.
- Significant Revenue Growth: The company achieved revenue of $220.9 million in Q4, surpassing the $211.2 million consensus, and increasing from $210 million in the prior quarter and $199.3 million a year ago, reflecting strong market demand recovery.
- Accelerated Leasing Activity: During Q4, STAG commenced leases totaling 3.0 million square feet, with cash rent change of 16.3% and straight-line rent change of 27.4%, demonstrating heightened activity in the leasing market and enhancing future revenue sustainability.
- Strategic Investments and Acquisitions: The company acquired seven buildings totaling 2.2 million square feet for $285.9 million at a cash capitalization rate of 6.4%, while selling eight buildings totaling 1.6 million square feet for $88.8 million, optimizing its asset portfolio.
See More
STAG Industrial Reports Strong Q4 Earnings Beat
- Strong Financial Performance: STAG Industrial reported a Q4 FFO of $0.66, beating estimates by $0.02, with revenue of $220.9 million reflecting a 10.8% year-over-year increase, surpassing expectations by $9.66 million, indicating robust financial health.
- Cash NOI Growth: The Same Store Cash NOI for Q4 reached $148.5 million, a 5.4% increase from $140.8 million in Q4 2024, while the annual Same Store Cash NOI totaled $579.4 million, up 4.3% from $555.6 million in 2024, showcasing stability and growth potential in the leasing market.
- Asset Acquisition and Sales: In Q4 2025, STAG acquired seven buildings totaling 2.2 million square feet for $285.9 million at a cash capitalization rate of 6.4%, while selling eight buildings totaling 1.6 million square feet for $88.8 million, optimizing its asset portfolio.
- Leasing and Occupancy Rates: As of December 31, 2025, the overall portfolio occupancy rate was 96.4%, with the operating portfolio at 97.2%, and the company commenced leases totaling 3.0 million square feet in Q4, with a cash rent change of 16.3%, reflecting strong market demand.
See More
STAG Industrial Set to Release Q4 Earnings on February 11
- Earnings Announcement Schedule: STAG Industrial is set to announce its Q4 2023 earnings on February 11 after market close, with consensus estimates predicting a Funds From Operations (FFO) of $0.64 per share and revenue of $211.24 million, indicating the company's ongoing performance in generating stable income.
- Growth Potential Analysis: STAG Industrial's growth rate surpasses its price-to-earnings multiple, suggesting strong market competitiveness in the current economic climate, which may attract more investor interest in its long-term growth potential.
- Strong Leasing Performance: The company has demonstrated robust leasing performance, reflecting improved market demand and portfolio stability, which not only strengthens its revenue base but also lays a solid foundation for future expansion.
- Historical Performance Review: In Q3, STAG Industrial exceeded earnings expectations, with consistent monthly income providing confidence to investors and further solidifying its position in the Real Estate Investment Trust (REIT) sector.
See More
