STAG Industrial (STAG) opened Q1 2026 with total revenue of US$224.2 million and basic EPS of US$0.32, alongside funds from operations of US$126.6 million that keep the REIT’s cash earnings front and center for investors. Over recent quarters the company has seen revenue move from US$199.3 million in Q4 2024 to US$205.6 million in Q1 2025, US$220.9 million in Q4 2025 and now US$224.2 million, while trailing twelve month revenue sits at US$863.8 million with basic EPS of US$1.30. With a trailing net margin of 28.2% and a 4.07% dividend yield, the latest print provides a straightforward view of how STAG’s profitability profile and income characteristics compare with its recent history.

See our full analysis for STAG Industrial.

With the numbers on the table, the next step is to test them against the prevailing narratives around STAG Industrial to see which stories hold up and which need a rethink.

FFO Stays Solid While Margins Ease Back

• Funds From Operations came in at US$126.6 million for Q1 2026, up from US$117.1 million in Q1 2025, while trailing twelve month FFO reached US$496.8 million alongside a trailing net margin of 28.2%, down from 31% a year earlier.
• Analysts' consensus view points to solid cash generation but softer profitability, and the margin data backs that mixed picture:
  • Revenue on a trailing basis grew to US$863.8 million with 7.7% annual growth, which supports the idea of steady demand for STAG’s industrial properties.
  • The drop in net margin from 31% to 28.2% and the inclusion of a US$58.4 million one off gain both temper that view, since part of the recent profit strength is tied to non recurring items rather than ongoing rent checks.

Premium P/E and 4.07% Yield Create a Trade Off

• STAG trades on a trailing P/E of 29.9x compared with 28.3x for peers and 16.6x for the wider Global Industrial REITs group, while offering a 4.07% dividend yield and a DCF fair value of US$48.38 versus a US$38.09 share price.
• Consensus narrative talks about uneven growth across markets and assets, and the valuation gap to both peers and DCF fair value captures that push and pull:
  • The 5.8% annual earnings growth rate over five years and 7.7% revenue growth rate on a trailing basis support the idea that STAG has been able to grow through cycles, which can justify part of the premium to the 16.6x industry P/E.
  • At the same time, earnings growth over the last year was only 0.07% and forecasts point to roughly 0.8% annual earnings decline over the next three years, which challenges the idea that a premium multiple and only a modest discount to the DCF fair value can be taken for granted.

Interest Coverage Weak, Yet Balance Sheet Backdrop Supports Bulls

• Interest payments are not well covered by earnings according to the risk summary, even as net profit margin stands at 28.2% and the stock trades about 21.3% below the DCF fair value of US$48.38, with a current price of US$38.09.
• Bulls focus on balance sheet strength and leasing activity, while bears focus on financial risk, and the reported figures give both sides something to point to:
  • Bears highlight that weak interest coverage and expectations for earnings to shrink by around 0.8% per year over the next three years leave less room to absorb higher financing costs, particularly when part of the recent profit included a US$58.4 million one off gain.
  • Bulls point to factors such as low leverage at 5.1x net debt to EBITDA, nearly US$1.0b in liquidity, a recent investment grade credit upgrade, and 90.8% of anticipated 2025 operating portfolio square feet already leased as reasons they think the current price discount and 4.07% yield compensate for those financing headwinds.

On this kind of split tape, it can help to see how bullish investors connect the leasing, balance sheet and valuation pieces into a single story before deciding how much weight to give the risks versus the current discount to DCF fair value. 🐂 STAG Industrial Bull Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for STAG Industrial on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With sentiment divided between risks and rewards, this is a moment to look at the full picture yourself and decide where you stand. To evaluate both sides before you move on, start with these 3 key rewards and 4 important warning signs.

Explore Alternatives

STAG Industrial faces weaker interest coverage, a lower net margin, and only modest recent earnings growth, which together leave less room for financial setbacks.

If those pressure points make you cautious, compare STAG with companies screened for stronger earnings coverage and steadier financial profiles by checking the 71 resilient stocks with low risk scores.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.