STAG Industrial, Inc. (STAG): Business Model Canvas [Dec-2025 Updated]

You're looking to see the engine behind a top-tier industrial landlord, and honestly, the Business Model Canvas for STAG Industrial is simpler and smarter than most. It's a data-driven playbook focused on acquiring single-tenant warehouses in secondary markets, which is why they saw a 23.9% average cash rent change in 2025. After years analyzing these structures, I can tell you this model prioritizes stable cash flow, supported by a massive 119.2 million square foot portfolio and $961.2 million in liquidity as of Q2 2025. Dive below to see the nine precise building blocks that generate that reliable, monthly dividend you're tracking.

STAG Industrial, Inc. (STAG) - Canvas Business Model: Key Partnerships

You're looking at the relationships STAG Industrial, Inc. relies on to fund its growth and execute its industrial property strategy as of late 2025. These partnerships are critical for managing capital structure and sourcing new assets.

Major financial institutions for unsecured debt and credit facilities

STAG Industrial, Inc. maintains relationships with major banks to support its balance sheet through revolving credit facilities and term loans. As of September 15, 2025, the Company and the Operating Partnership entered into amendments to several key facilities. These facilities provide the necessary liquidity for operations and acquisitions.

The key debt instruments STAG Industrial, Inc. has in place, as amended or outstanding near the end of 2025, include:

• The $1.0 billion unsecured credit facility maturing September 7, 2029.
• The $150 million unsecured term loan A maturing March 15, 2027.
• The $200 million unsecured term loan F maturing March 23, 2029.
• The $187.5 million unsecured term loan H maturing January 25, 2028.
• The $187.5 million unsecured term loan I maturing January 25, 2028.

As of September 30, 2025, the reported outstanding balances for debt components were:

The company reported total Liquidity of $904.1 million as of September 30, 2025.

Wells Fargo Bank, N.A. as a key lender for the refinanced $300 million term loan G

Wells Fargo Bank, National Association was a key party in the recent restructuring of a significant loan. On September 15, 2025, STAG Industrial, Inc. entered into the Second Amended and Restated Term Loan Agreement to amend and restate the $300 million unsecured term loan G.

This refinancing action achieved several things:

• Extended the maturity date from February 6, 2026, to March 15, 2030, with a one-year extension option.
• Swapped the Term SOFR to a fixed rate of 1.80% until February 5, 2026, and 3.94% from February 5, 2026, through March 15, 2030.

This relationship is long-standing; in a 2021 refinancing of the same term loan, Wells Fargo Securities, LLC served as the Left Lead Arranger and Bookrunner.

Institutional investors for equity capital raises and debt issuance

Equity and debt capital raises rely heavily on institutional backing. As of early 2025 data, Institutions Ownership in STAG Industrial, Inc. stock stood at 95.65%. The firm has a total of 7 investors, all of whom are institutional.

Third quarter 2025 activity shows active participation from institutional holders:

• JPMorgan Chase & Co. boosted its stake by 12.9%, owning 1,495,511 shares valued at $52,778,000 after Q3 2025.
• CIBC Private Wealth Group LLC increased its stake by 34.9%, holding 5,841 shares worth $206,000.
• CIBC Bancorp USA Inc. acquired a new position valued at approximately $1,732,000 during the third quarter.

STAG Industrial, Inc. also issued senior unsecured notes in 2024, where lenders like Regions Bank and BMO have been noted participants in prior debt rounds.

Development partners for specific projects like the Reno, NV 284K SF warehouse JV

STAG Industrial, Inc. engages in joint ventures (JVs) for development opportunities. In the second quarter of 2025, the Company entered a JV with the intent to develop a 500K SF Class A warehouse on 43 acres of land in Bullitt County, south of Louisville.

Regarding the Reno project, STAG Industrial, Inc. acquired 18 acres of land in Q3 2024 as part of a joint venture to develop a 284K SF Class A warehouse in the North Valleys submarket of Reno. Construction on this project commenced in Q4 2024, with an estimated substantial shell completion date set for Q4 2025. The structure of these JVs may involve restrictions, such as requiring prior partner consent for the sale or transfer of interests in the venture.

National and regional commercial real estate brokerage networks for acquisitions and leasing

While specific brokerage partnership agreements aren't detailed, the leasing volume indicates active engagement with the broader market. For the nine months ended September 30, 2025, STAG Industrial, Inc. commenced leases totaling 2.0 million square feet across its portfolio. For the third quarter of 2025 alone, leases commenced totaled 2.2 million square feet.

Leasing success metrics that rely on market access include:

• Cash Rent Change on leases commenced year-to-date 2025: approximately 24%.
• Cash Rent Change on leases commenced in Q3 2025: 27.2%.
• Retention for leases expiring in Q3 2025: 63.4% for 2.5 million square feet.

For 2026 leasing projections, management expects cash leasing spreads between 18% and 20%.

STAG Industrial, Inc. (STAG) - Canvas Business Model: Key Activities

You're looking at the core engine room of STAG Industrial, Inc. (STAG) as of late 2025. This is where the actual work of growing and managing that single-tenant industrial portfolio happens, driven by data and disciplined execution.

Data-driven acquisition of single-tenant industrial properties

STAG Industrial, Inc. (STAG) continues its targeted buying strategy, focusing on properties that fit its single-tenant, logistics-oriented mandate. The activity level for the first nine months of 2025 shows a clear pace of capital deployment.

For instance, in the third quarter of 2025, STAG Industrial, Inc. (STAG) acquired two buildings for $101.5 million with a Cash Capitalization Rate of 6.6%.

Proactive asset management and property maintenance

Keeping the portfolio humming is critical, especially with a focus on single-tenant net leases. Occupancy remains high, reflecting strong tenant demand for their specific asset class.

• Operating Portfolio Occupancy (as of September 30, 2025): 96.8%
• Total Portfolio Occupancy (as of September 30, 2025): 95.8%
• Weighted Average Lease Term (as of Q3 '25): 4.3 years
• Same Store Cash NOI (Q3 2025): $145.7 million
• Same Store Cash NOI Growth (Q3 2025 vs Q3 2024): 3.9%

The Same Store Cash NOI growth for the third quarter of 2025 was 3.9% compared to the third quarter of 2024's $140.2 million.

Leasing execution, achieving 23.9% average cash rent change in 2025

Leasing activity is a major driver, as rolling leases at higher rates directly impacts future cash flow. The execution in 2025 has been very strong, often exceeding initial guidance.

STAG Industrial, Inc. (STAG) commenced Operating Portfolio leases of 2.2 million square feet for the third quarter of 2025, resulting in a Cash Rent Change of 27.2%.

Capital markets management, including debt and equity financing

Managing the balance sheet involves both raising capital for growth and strategically managing existing debt obligations to lock in favorable rates and manage maturities.

• Net Debt to Annualized Run Rate Adjusted EBITDAre (as of September 30, 2025): 5.1x
• Liquidity (as of September 30, 2025): $904.1 million
• Debt Refinanced in Q3 2025: $300 million term loan G
• New Maturity Date for Refinanced Debt: March 15, 2030
• Disposition Volume Guidance for 2025: $100 to $200 million

The company refinanced a $300 million term loan G in the third quarter of 2025, which was scheduled to mature in February 2026, extending the maturity to March 15, 2030.

Development and repositioning of select assets for higher yields

While STAG Industrial, Inc. (STAG) is primarily an acquirer, it actively manages its development pipeline and repositions assets to maximize returns, often targeting high-growth areas.

The company completed the 53K SF building expansion in January 2025, achieving a return on investment of approximately 8.5% for the expansion premises.

STAG Industrial, Inc. (STAG) - Canvas Business Model: Key Resources

You're looking at the core assets that power STAG Industrial, Inc.'s operations, and honestly, the numbers speak for themselves. These aren't just buildings; they are the foundation of your predictable cash flow.

The physical footprint is substantial and geographically spread out, which is key for mitigating regional economic hiccups. As of September 30, 2025, the portfolio reached a significant scale.

This physical scale is supported by a very strong financial footing. STAG Industrial, Inc. has been diligent about maintaining liquidity and favorable debt terms, which you can see clearly in the Q2 2025 figures.

The balance sheet strength directly translates into better access to capital markets. For instance, the company saw its corporate credit rating improve.

• Moody's Credit Rating: Baa2 with a stable outlook, upgraded in May 2025.
• Liquidity as of Q2 2025: $961.2 million.
• Net Debt to Annualized Adjusted EBITDAre as of Q3 2025: 5.1x.
• Core FFO per diluted share for Q3 2025: $0.65.

Also, STAG Industrial, Inc. deploys technology to manage these assets better. While the prompt mentions a proprietary data analytics platform for underwriting, we know they are actively using software to aggregate utility data for sustainability and operational goals, which feeds into risk management and capital allocation decisions.

This technology focus helps drive efficiency across the portfolio. Here's a look at some of the operational metrics tied to this asset base:

Finance: review the impact of the Baa2 rating on the weighted average interest rate for the next debt issuance planned for Q1 2026 by end of month.

STAG Industrial, Inc. (STAG) - Canvas Business Model: Value Propositions

You receive value from STAG Industrial, Inc. through a portfolio structure designed for income and stability in the industrial real estate sector.

Stable, predictable cash flow from long-term, single-tenant leases is supported by strong leasing metrics. For the third quarter of 2025, Same Store Cash Net Operating Income (NOI) grew 3.9% compared to the third quarter of 2024, reaching $145.7 million. Furthermore, for leases expiring in Q3 2025, retention was 63.4% for 2.5 million square feet. Looking ahead, the expected Cash Rent Change for 2026 new and renewal leasing is projected to be between 18% and 20%.

The portfolio offers significant diversification across geography, industry, and tenant credit quality. As of September 30, 2025, STAG Industrial, Inc.'s industrial portfolio spanned 601 buildings across 41 states. The company mitigates concentration risk, as its top market, Chicago, represented just 8.1% of the portfolio, and the largest tenant, Amazon, accounted for only 2.8%. Credit quality is also managed, with nearly one-third of tenants classified as investment grade.

You get direct exposure to high-growth e-commerce and logistics real estate demand. As of late 2025, STAG Industrial, Inc. owns industrial warehouse space where 31% is utilized by the growing e-commerce industry. The leasing momentum reflects this demand, with Cash Rent Change on Operating Portfolio leases commenced in Q3 2025 reaching 27.2%.

The high occupancy rate provides a solid foundation for cash flow, holding steady at 95.8% for the total portfolio as of September 30, 2025. The Operating Portfolio showed an even tighter occupancy of 96.8%.

The monthly dividend payments are definitely valuable for income investors. STAG Industrial, Inc. pays dividends every month. The annual dividend was $1.49 per share, translating to a yield around 3.8%. The company has a history of increasing these payments, having raised dividends for 7 consecutive years.

Here's a quick look at key portfolio statistics as of Q3 2025:

You benefit from the REIT's focus on core industrial assets, which translates into tangible operational performance metrics:

• Same Store Cash NOI growth in Q3 2025: 3.9%.
• Cash Rent Change on Q3 2025 Operating Portfolio Leases: 27.2%.
• Portfolio Diversification (Top Market Share): 8.1%.
• Investment Grade Tenant Percentage: Nearly one-third.
• Consecutive Years of Dividend Increases: 7.

The company's liquidity position also supports continued execution. Liquidity was reported at $904.1 million at quarter end.

STAG Industrial, Inc. (STAG) - Canvas Business Model: Customer Relationships

You're looking at how STAG Industrial, Inc. keeps its tenants happy and locked in, which is the core of any good real estate play. Their approach is very hands-on, which is key when you own single-tenant industrial properties. They run a full industrial real estate operating platform designed to handle every physical aspect and tenant scenario that comes up with property ownership. This means they have dedicated teams for this, like the REGIONAL ASSET MANAGEMENT group, which works with local brokers on all new and renewal leasing deals. Also, they have a CAPITAL PROJECTS GROUP to oversee all the physical requirements, including things like ESG initiatives. That's defintely a direct service touchpoint.

The relationship structure is built on simplicity for the tenant, primarily through long-term triple-net (NNN) leases. This structure generally means the tenant handles most property operating expenses, which streamlines responsibilities. As of September 30, 2025, STAG Industrial's portfolio spanned 601 buildings across 41 states, totaling 119.2 Million SF. This scale allows them to manage these relationships efficiently while maintaining that direct oversight.

Their proactive approach to lease management is quite clear when you look at the numbers. For the full year 2025 expirations, STAG Industrial had already addressed 98.7% of the expected new and renewal leasing by October 28, 2025. This covered a massive 14.0 million square feet of space. That kind of early engagement suggests they are not waiting until the last minute to talk renewal; they are managing that cycle well ahead of time.

STAG Industrial, Inc. focuses on established tenants to keep credit risk low. As per the latest available data, 31% of their tenants are rated as investment grade. This focus has paid off historically, as the company has incurred credit losses of less than 0.1% of its revenues since its IPO. They are also focused on single-tenant facilities, which means each relationship is critical to that building's occupancy.

Providing tailored real estate solutions is about fitting the building to the tenant's specific need, especially for mission-critical facilities. While the portfolio is largely warehouse/distribution, they also own light manufacturing space. This flexibility in asset type allows them to serve tenants requiring specialized layouts or infrastructure, which is a key part of securing those long-term commitments.

Here's a quick look at some key tenant and leasing statistics around the third quarter of 2025:

You can see the relationship focus through their leasing success:

• Cash Rent Change on Q3 2025 Commenced Leases: 27.2%
• Straight-Line Rent Change on Q3 2025 Commenced Leases: 40.6%
• Weighted Average Lease Term (Q2 2025 context): 4.2 years
• Historical Cumulative Retention Since IPO: Approximately 73%

Finance: draft 13-week cash view by Friday.

STAG Industrial, Inc. (STAG) - Canvas Business Model: Channels

You're looking at how STAG Industrial, Inc. gets its properties, manages its tenants, and secures the capital to keep growing. It's all about the flow of assets and money, and the teams that manage those flows.

Internal acquisitions team for off-market and brokered property purchases

The internal acquisitions team is the engine for portfolio expansion. This team processes over 1,250+ transactions passing initial triage to source new industrial assets across the United States. As of the third quarter of 2025, STAG Industrial, Inc. owned 601 buildings spanning 41 states, totaling 119.2 million SF, with an Enterprise Value of $9.8 Billion. During the third quarter of 2025 alone, the company acquired 2 buildings totaling 1.0 million square feet for $101.5 million, achieving a Cash Capitalization Rate of 6.6%. Year-to-date stabilized acquisitions through Q3 2025 reached $212 million, with an additional $153 million under agreement to close before year-end. For the full year 2025, the expected acquisition volume guidance was narrowed to a range of $350 million to $500 million.

Direct leasing and internal asset management teams for tenant interaction

Direct interaction with tenants is managed by internal leasing and asset management functions, which are critical for maintaining high occupancy and driving rent growth. As of September 30, 2025, the total portfolio occupancy stood at 95.8%, with the Operating Portfolio occupancy at 96.8%. In the third quarter of 2025, STAG Industrial, Inc. commenced leases for 2.2 million square feet of space. This leasing activity resulted in a Cash Rent Change of 27.2% and a Straight-Line Rent Change of 40.6%. Tenant retention for Q3 2025 was 63.4% for the 2.5 million square feet of leases expiring in that quarter. The portfolio's Weighted Average Lease Term (WALT) as of Q3 '25 was 4.3 years, and the average rent was $5.79 per square foot. STAG Industrial, Inc.'s average lease size remains small relative to new supply, being less than 150k SF, with a median size around 110k SF.

Public equity markets (NYSE: STAG) for capital raising and investor access

Access to capital for property acquisition and balance sheet management flows through the public equity markets under the ticker NYSE: STAG. As of October 28, 2025, the company's market capitalization was $7.12B, with the stock trading at $38.12. Liquidity at the end of the third quarter of 2025 was robust at $904 million. The company actively manages its debt structure through these markets; in Q3 2025, STAG Industrial, Inc. refinanced $300 million of a term loan, extending its maturity to March 15, 2030. The Net Debt to Annualized Run-Rate Adjusted EBITDAre ratio was 5.1x at the end of Q3 2025, aligning with the guidance range of 5.00x - 5.50x.

Investor Relations team for communication with shareholders and analysts

The Investor Relations team serves as the primary channel for communicating financial performance and strategy to the investment community. STAG Industrial, Inc. is a member of the S&P Mid-Cap 400 index. The company released its Q3 2025 results on October 29, 2025, reporting Core FFO per diluted share of $0.65 for the quarter, an 8.3% increase year-over-year. Following this, the full-year 2025 Core FFO per share guidance was raised to a range of $2.52 to $2.55. Institutional investors and hedge funds own 88.67% of the company's stock. The company's Investor Presentation for Fall 2025 provided key metrics to this audience.

Commercial real estate brokers for property leasing and disposition

Commercial real estate brokers are utilized alongside internal teams for leasing and for executing the disposition side of capital recycling. In Q3 2025, STAG Industrial, Inc. sold 1 property comprising 100,000 square feet for gross proceeds of $6.1 million. Year-to-date, the company sold 3 buildings totaling 588,591 square feet for total gross proceeds of $82.2 million. The full-year 2025 disposition guidance was set between $100 million and $200 million. The internal teams also leverage local market expertise to execute value-add leasing projects, such as completing a full building lease for 243,642 square feet at a development project in Greer, South Carolina.

STAG Industrial, Inc. (STAG) - Canvas Business Model: Customer Segments

You're looking at the core of STAG Industrial, Inc.'s (STAG) business-who exactly is paying the rent across their massive industrial footprint. Honestly, the customer base is defined by the sheer scale of their holdings and the quality they demand in their tenants.

STAG Industrial, Inc. primarily serves large and mid-sized companies needing warehouse and distribution space. This isn't about small storage units; it's about mission-critical facilities. As of September 30, 2025, the portfolio spanned 601 buildings across 41 states, covering 119.2 million square feet. The demand for this space remains high, evidenced by the operating portfolio occupancy holding strong at 96.8% as of the third quarter of 2025.

The tenant roster is heavily weighted toward sectors driving modern commerce. You'll find a significant concentration of tenants in e-commerce, logistics, and light manufacturing industries. Specifically, about 31% of STAG Industrial, Inc.'s warehouse and distribution space is dedicated to the growing e-commerce industry. This focus positions STAG Industrial, Inc. directly in the path of secular demand trends like reshoring and supply chain reconfiguration. The company also actively courts third-party logistics (3PL) providers and supply chain operators who require flexible, well-located facilities for their networks.

A key part of the STAG Industrial, Inc. strategy is ensuring tenant quality to maintain stable cash flow. They target creditworthy corporations. This focus on quality is quantified by their conservative approach to concentration risk. As of mid-2025, a major safeguard in their structure is that no single tenant exceeds 2.9% of base rent. Furthermore, nearly one-third of their tenants are investment grade, and a substantial portion of their tenant base has significant financial backing-for instance, 59% of tenants had revenues exceeding $1 billion based on prior reporting.

Finally, the customer segment isn't just the direct tenant; it's also the capital markets. STAG Industrial, Inc. attracts institutional and retail investors seeking stable, income-producing REIT shares. The appeal here is the reliable, monthly income stream and operational consistency. For example, the forward dividend yield was quoted around 3.8% in late 2025, while Core Funds From Operations (FFO) per diluted share showed an 8.3% increase year-over-year in Q3 2025, signaling strong operational profitability. The Equity Market Capitalization stood at approximately $6,727 million as of Winter 2025.

Here's a quick look at the operational metrics that define the quality of the tenancy:

The leasing activity also speaks to the type of customer STAG Industrial, Inc. retains. For the third quarter of 2025, the company achieved a 75.3% retention rate for expiring leases, and year-to-date, they saw a Cash Rent Change of 23.9% on new and renewal leasing as of October 28, 2025. These numbers show customers are willing to pay significantly more to stay in STAG Industrial, Inc.'s facilities.

You can see the diversification strategy in action through the geographic spread, too. The top market, Chicago, only accounts for 8.1% of the portfolio. This de-risks the portfolio against localized economic shocks, which is a major selling point for the institutional investors you mentioned.

• Leases commenced in Q3 2025: 2.2 million square feet.
• Cash Rent Change on Q3 2025 Operating Leases: 27.2%.
• Weighted Average Lease Term (WALT) is a key factor for tenant stability.
• STAG Industrial, Inc. has a history of credit losses less than 0.1% of revenues since its IPO.

Finance: draft 13-week cash view by Friday.

STAG Industrial, Inc. (STAG) - Canvas Business Model: Cost Structure

The cost structure for STAG Industrial, Inc. (STAG) is heavily influenced by its debt load, corporate overhead, and the capital required to maintain and grow its industrial property portfolio.

Significant interest expense on debt is a major component, especially given the higher rate environment. For the second quarter of 2025, STAG Industrial reported interest expense of $33.6 million. This was an increase from $27.4 million reported in the second quarter of 2024.

General and administrative (G&A) expenses are managed at the corporate level. STAG Industrial guided G&A expenses for the full year 2025 to be between $52 million and $53 million. For context, the Selling, General & Administrative (SG&A) expenses for the twelve months ending September 30, 2025, were $0.051B, or $51 million.

Property operating expenses, which include taxes, insurance, and maintenance, are largely managed through the lease structure. STAG Industrial creates value by leasing properties to tenants on a triple-net lease basis, meaning the tenant takes care of these property-related expenditures. However, total operating expenses for the twelve months ending September 30, 2025, were reported at $0.518B, or $518 million.

Costs related to property acquisitions and ongoing capital needs are also key outflows. The company's disciplined acquisition strategy involves deploying capital into properties that are expected to generate a strong return over the all-in cost. Here's a look at some recent transaction and capital expenditure metrics:

Capital expenditures for building improvements and tenant fit-outs are necessary to secure and maintain occupancy. STAG Industrial defines Acquisition Capital Expenditures as costs identified at the time of acquisition, which include new lease commissions and tenant improvements for previously unoccupied space. The company's calculation for Cash Available for Distribution specifically deducts capital expenditures, leasing commissions, and tenant improvements.

• Capital expenditure as a percentage of Cash NOI is guided to be approximately 7%.
• One example of a building improvement investment was approximately $4.8 million for building and site upgrades completed before January 2025.
• The company funded $550 million of senior unsecured notes in June 2025 at a weighted average interest rate of 5.65%.

Finance: draft 13-week cash view by Friday.

STAG Industrial, Inc. (STAG) - Canvas Business Model: Revenue Streams

The core of STAG Industrial, Inc. (STAG) revenue generation is rental income from long-term leases across its U.S. industrial property portfolio. This recurring revenue stream is the foundation of the Real Estate Investment Trust (REIT) structure.

As of September 30, 2025, the Trailing Twelve-Month (TTM) revenue for STAG Industrial stood at approximately $823.613 million. This reflects consistent top-line growth, with quarterly revenue also showing strength; for instance, Q2 2025 GAAP Revenue reached $207.6 million. The ability to command higher rents on new and renewal leases directly fuels this income.

You can see the key revenue metrics that underpin this stream:

This pricing power is evident in leasing activity. For example, in Q2 2025, new and renewal leases covering 4.2 million square feet achieved a 24.6% average increase in cash rent.

Another critical component of rental income is the built-in contractual growth. STAG Industrial benefits from contractual rent escalators embedded in its leases. The weighted average rental escalator across the entire portfolio was reported at 2.9% in 2025. This rate contributes directly to organic revenue growth, as seen in the Same Store Cash NOI growth drivers.

Beyond base rent, STAG Industrial generates revenue through strategic capital recycling, which includes gains from strategic property dispositions. This is not a steady stream but provides lumpy, non-recurring income that can boost net income. For instance, in Q1 2025, STAG Industrial sold one building for $67.0 million, which resulted in a net gain of $49.9 million. The company projected a total disposition volume between $100 million and $200 million for the full year 2025.

Finally, the revenue structure also includes income derived from fees from unconsolidated partnerships and joint ventures, though specific dollar amounts for this component aren't as prominently detailed as the core rental or disposition figures in the latest reports you're looking at. This diversification of income sources helps support the overall financial profile.

You should keep an eye on these elements:

• Rental income from long-term leases is the primary revenue source.
• TTM revenue was $823.613 million as of September 30, 2025.
• Weighted average contractual rent escalator is ~2.9% in 2025.
• Q1 2025 disposition sale price was $67.0 million.
• Net gain on the Q1 2025 sale was $49.9 million.

Finance: draft 13-week cash view by Friday.