STAG Industrial : Third Quarter 2024 Supplemental Information (Not Combined)

Published: 2024-10-29 18:39:40 ET STAG

SUPPLEMENTAL INFORMATION

UNAUDITED THIRD QUARTER 2024

Forward-Looking Statements

This supplemental information package contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. STAG Industrial, Inc. (STAG) intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe STAG's future plans, strategies and expectations, are generally identifiable by use of the words "believe," "will," "expect," "intend," "anticipate," "estimate," "should", "project" or similar expressions. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond STAG's control and which could materially affect actual results, performances or achievements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, the risk factors discussed in STAG's most recent Annual Report on Form 10-K for the year ended December 31, 2023, as updated by the Company's subsequent reports filed with the Securities and Exchange Commission. Accordingly, there is no assurance that STAG's expectations will be realized. Except as otherwise required by the federal securities laws, STAG disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in STAG's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Defined Terms, Including Non-GAAP Measurements

Please refer to the Definitions section near the end of these materials for definitions of capitalized terms used herein, including, among others, Annualized Base Rental Revenue, Capitalization Rate and Retention, as well as non-GAAP financial measures, such as Adjusted EBITDAre, Cash NOI, and Core FFO. These materials provide reconciliations of non-GAAP financial measures to net income (loss) in accordance with GAAP. None of the non-GAAP financial measures is intended as an alternative to net income (loss) in accordance with GAAP as a measure of the Company's financial performance.

Golden, CO

Londonderry, NH

STAG SUPPLEMENTAL INFORMATION - THIRD QUARTER 2024

TABLE OF CONTENTS

Page

Overview

Top Markets, Tenants and Industries

Financials

Consolidated Balance Sheets

Capitalization and Guidance

Consolidated Statements of Operations

Capital Structure, Debt Metrics & Covenants

Net Operating Income (NOI) & Cash NOI

Debt Summary

Funds From Operations (FFO) & Core FFO

Debt Maturity Schedule

Adjusted EBITDAre & Cash Available for Distribution (CAD)

Guidance

Portfolio

Definitions

21-24

Acquisitions

Development Summary

Dispositions

Leasing & Retention Statistics

Same Store NOI

Capital Expenditures

Lease Expiration Schedule

STAG SUPPLEMENTAL INFORMATION - THIRD QUARTER 2024

OVERVIEW

Snapshot (September 30, 2024)

Square Feet

114.5 million

Number of Buildings

578

Number of States

Portfolio Occupancy

97.1%

Operating Portfolio Occupancy

97.8%

Weighted Average Lease Term

4.3 years

Weighted Average Rent

$5.50/sf

Net Debt to Annualized Run Rate

5.1x

Adjusted EBITDAre ratio

Monthly Dividend (annualized)

$0.123333 ($1.48)

West Columbia, SC

Waukegan, IL

STAG SUPPLEMENTAL INFORMATION - THIRD QUARTER 2024

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

September 30, 2024

December 31, 2023

Assets

Rental Property:

Land

739,975

698,633

Buildings and improvements, net of accumulated depreciation of $1,042,046 and $921,846, respectively

5,054,195

4,838,522

Deferred leasing intangibles, net of accumulated amortization of $369,301 and $360,094, respectively

413,509

435,722

Total rental property, net

6,207,679

5,972,877

Cash and cash equivalents

70,036

20,741

Restricted cash

1,108

1,127

Tenant accounts receivable

128,366

128,274

Prepaid expenses and other assets

101,922

80,455

Interest rate swaps

29,016

50,418

Operating lease right-of-use assets

28,105

29,566

Total assets

6,566,232

6,283,458

Liabilities and Equity

Liabilities:

Unsecured credit facility

256,000

402,000

Unsecured term loans, net

1,021,513

1,021,773

Unsecured notes, net

1,643,821

1,195,872

Mortgage notes, net

4,247

4,401

Accounts payable, accrued expenses and other liabilities

139,879

83,152

Interest rate swaps

3,027

Tenant prepaid rent and security deposits

47,056

44,238

Dividends and distributions payable

22,937

22,726

Deferred leasing intangibles, net of accumulated amortization of $29,055 and $26,613, respectively

31,195

29,908

Operating lease liabilities

32,217

33,577

Total liabilities

3,201,892

2,837,647

Equity:

Preferred stock, par value $0.01 per share, 20,000,000 shares authorized at September 30, 2024 and December 31, 2023; none issued or outstanding

Common stock, par value $0.01 per share, 300,000,000 shares authorized at September 30, 2024 and December 31, 2023, 182,205,640 and 181,690,867 shares issued

1,822

1,817

and outstanding at September 30, 2024 and December 31, 2023, respectively

Additional paid-in capital

4,281,290

4,272,376

Cumulative dividends in excess of earnings

(1,012,760)

(948,720)

Accumulated other comprehensive income

25,320

49,207

Total stockholders' equity

3,295,672

3,374,680

Noncontrolling interest

68,233

71,131

Noncontrolling interest in joint venture

435

Total equity

3,364,340

3,445,811

Total liabilities and equity

6,566,232

6,283,458

STAG SUPPLEMENTAL INFORMATION - THIRD QUARTER 2024

CONSOLIDATED STATEMENTS OF OPERATIONS

Three months ended September 30,

Nine months ended September 30,

(in thousands, except per share data)

2024

2023

2024

2023

Revenue

Rental income

190,286

177,858

564,155

522,565

Other income

453

1,423

3,904

1,963

Total revenue

190,739

179,281

568,059

524,528

Expenses

Property

38,015

34,429

114,564

102,985

General and administrative

11,978

11,097

36,758

35,833

Depreciation and amortization

72,506

69,761

219,213

207,199

Loss on impairment

4,967

Other expenses

545

773

1,703

4,109

Total expenses

123,044

116,060

377,205

350,126

Other income (expense)

Interest and other income

Interest expense

(28,705)

(23,753)

(81,498)

(69,225)

Debt extinguishment and modification expenses

(36)

(703)

Gain on involuntary conversion

3,568

9,285

Gain on the sales of rental property, net

195

11,683

23,281

49,343

Total other income (expense)

(24,964)

(12,053)

(49,596)

(19,829)

Net income

42,731

51,168

141,258

154,573

Less: income attributable to noncontrolling interest

875

1,128

2,992

3,461

Net income attributable to STAG Industrial, Inc.

41,856

50,040

138,266

151,112

Less: amount allocated to participating securities

138

159

Net income attributable to common stockholders

41,811

49,987

138,128

150,953

Weighted average common shares outstanding - basic

182,027

180,803

181,899

179,810

Weighted average common shares outstanding - diluted

182,297

181,163

182,173

180,070

Net income per share - basic and diluted

Net income per share attributable to common stockholders - basic

0.23

0.28

0.76

0.84

Net income per share attributable to common stockholders - diluted

0.23

0.28

0.76

0.84

STAG SUPPLEMENTAL INFORMATION - THIRD QUARTER 2024

NET OPERATING INCOME (NOI) &

CASH NOI

Three months ended September 30,

(in thousands)

2024

2023

Net income

42,731

51,168

General and administrative

11,978

11,097

Depreciation and amortization

72,506

69,761

Interest and other income

(14)

(17)

Interest expense

28,705

23,753

Loss on impairment

Gain on involuntary conversion

(3,568)

Debt extinguishment and modification expenses

Other expenses

545

773

Gain on the sales of rental property, net

(195)

(11,683)

Net operating income (1)

152,724

144,852

Net operating income

152,724

144,852

Rental property straight-line rent adjustments, net

(3,779)

(3,897)

Amortization of above and below market leases, net

(530)

(298)

Cash net operating income

148,415

140,657

Cash net operating income

148,415

Cash NOI from acquisitions' and dispositions' timing

1,434

Cash termination, solar and other income

(869)

Run Rate Cash NOI

148,980

Same Store Portfolio NOI

Total NOI

152,724

144,852

Less: NOI non-same-store properties

(11,023)

(5,963)

Termination, solar and other adjustments, net

(824)

(1,306)

Same Store NOI

140,877

137,583

Less: straight-line rent adjustments, net

(2,782)

(5,073)

Plus: amortization of above and below market leases, net

(108)

Same Store Cash NOI

138,173

132,402

Nine months ended September 30,

2024

2023

141,258

154,573

36,758

35,833

219,213

207,199

(39)

(53)

81,498

69,225

4,967

(9,285)

703

1,703

4,109

(23,281)

(49,343)

453,495

421,543

453,495

421,543

(11,178)

(13,255)

(490)

442,319

407,798

453,495

421,543

(27,687)

(15,333)

(4,340)

(2,613)

421,468

403,597

(8,272)

(13,675)

264

(400)

413,460

389,522

STAG SUPPLEMENTAL INFORMATION - THIRD QUARTER 2024

FUNDS FROM OPERATIONS (FFO) &

CORE FFO

Three months ended September 30,

(in thousands, except per share data)

2024

2023

Net income

42,731

51,168

Rental property depreciation and amortization

72,421

69,701

Loss on impairment

Gain on the sales of rental property, net

(195)

(11,683)

Funds from operations

114,957

109,186

Amount allocated to restricted shares of common stock and unvested units

(130)

(132)

Funds from operations attributable to common stockholders and unit holders

114,827

109,054

Funds from operations attributable to common stockholders and unit holders

114,827

109,054

Amortization of above and below market leases, net

(530)

(298)

Non-recurring dead deal costs and other

Debt extinguishment and modification expenses

Gain on involuntary conversion

(3,568)

Core funds from operations

110,765

108,756

Weighted average common shares and units

Weighted average common shares outstanding

182,027

180,803

Weighted average units outstanding

3,588

3,859

Weighted average common shares and units - basic

185,615

184,662

Dilutive shares

270

360

Weighted average common shares, units, and other dilutive shares - diluted

185,885

185,022

Core funds from operations per share / unit - basic

0.60

0.59

Core funds from operations per share / unit - diluted

0.60

0.59

Nine months ended September 30,

2024

2023

141,258

154,573

219,002

207,029

4,967

(23,281)

(49,343)

341,946

312,259

(415)

(423)

341,531

311,836

341,531

311,836

(490)

2,491

703

(9,285)

332,951

313,837

181,899

179,810

3,685

3,882

185,584

183,692

274

260

185,858

183,952

1.79

1.71

1.79

1.71

STAG SUPPLEMENTAL INFORMATION - THIRD QUARTER 2024

ADJUSTED EBITDAre & CASH AVAILABLE FOR

DISTRIBUTION (CAD)

Three months ended September 30,

(in thousands)

2024

2023

Net income

42,731

51,168

Depreciation and amortization

72,506

69,761

Interest and other income

(14)

(17)

Interest expense

28,705

23,753

Loss on impairment

Gain on the sales of rental property, net

(195)

(11,683)

EBITDA for Real Estate (EBITDAre)

143,733

132,982

EBITDAre

143,733

132,982

Straight-line rent adjustments, net

(3,853)

(3,948)

Amortization of above and below market leases, net

(530)

(298)

Non-cash compensation expense

2,952

2,602

Non-recurring other items

(29)

(388)

Gain on involuntary conversion

(3,568)

Debt extinguishment and modification expenses

Adjusted EBITDAre

138,741

130,950

Cash available for distribution reconciliation

Core funds from operations

110,765

108,756

Amount allocated to restricted shares of common stock and unvested units

130

132

Non-rental property depreciation and amortization

Straight-line rent adjustments, net

(3,853)

(3,948)

Capital expenditures

(12,203)

(5,602)

Capital expenditures reimbursed by tenants

(2,231)

(1,058)

Lease commissions and tenant improvements

(8,845)

(5,075)

Non-cash portion of interest expense

1,165

976

Non-cash compensation expense

2,952

2,602

Cash available for distribution

87,965

96,843

Nine months ended September 30,

2024

2023

141,258

154,573

219,213

207,199

(39)

(53)

81,498

69,225

4,967

(23,281)

(49,343)

423,616

381,601

423,616

381,601

(11,384)

(13,414)

(490)

8,813

8,987

(331)

2,002

(9,285)

703

412,134

378,686

332,951

313,837

415

423

211

170

(11,384)

(13,414)

(28,376)

(22,369)

(4,799)

(1,328)

(19,815)

(15,120)

3,201

2,924

8,813

8,987

281,217

274,110

STAG SUPPLEMENTAL INFORMATION - THIRD QUARTER 2024

ACQUISITIONS

THIRD QUARTER 2024 ACQUISITIONS

Cash

Straight-Line

Weighted Average Lease

Capitalization

Market

Date Acquired

Square Feet

Buildings

Purchase Price ($000)

Term (Years)

Rate

LaGrange, GA

9/9/2024

323,368

$34,870

7.5

Boston, MA

9/12/2024

290,471

78,127

4.9

Total / weighted average

613,839

$112,997

6.2

6.7%

7.2%

Note: In the third quarter, the Company acquired one vacant land parcel for $1.9 million. This asset is excluded from the acquisition activity statistics above.

Note: In the third quarter, the Company acquired one vacant land parcel for $9.0 million as part of a joint venture. This asset is excluded from the acquisition activity statistics above.

2024 ACQUISITIONS

Cash

Straight-Line

Weighted Average Lease

Capitalization

Market

Square Feet

Buildings

Purchase Price ($000)

Term (Years)

Rate

697,500

$50,073

6.8

6.1%

6.8%

2,193,684

225,622

4.4

6.7%

7.0%

613,839

112,997

6.2

6.7%

7.2%

Total / weighted average

3,505,023

$388,692

5.2

6.6%

7.0%

Note: Year to date, the Company acquired three vacant land parcels for $19.1 million. These assets are excluded from the acquisition activity statistics above.

STAG SUPPLEMENTAL INFORMATION - THIRD QUARTER 2024

Disclaimer

STAG Industrial Inc. published this content on October 29, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on October 29, 2024 at 22:30:36.689.