STAG Industrial Offers Details of Q2 Acquisition, Leasing Results
STAG Industrial, Inc. (the "Company") (NYSE: STAG), a company focused on the acquisition, ownership and management of single-tenant industrial properties throughout the United States, today detailed its acquisition and leasing activity for June 2013 as well the second quarter of 2013.
In June, the Company acquired eight warehouse and distribution facilities located in Belvidere, Illinois and two light manufacturing facilities located near Grand Rapids, Michigan. The ten properties consist of over 1.1 million square feet and were purchased for a total consideration of approximately $58 million.
In the second quarter of 2013, the Company has acquired a total of sixteen industrial facilities consisting of approximately 2.2 million square feet for approximately $109 million. On a square foot basis, the second quarter's acquisitions increased the Company's asset base by more than 7% over the prior quarter.
For the year to date, the Company has acquired twenty-three industrial facilities consisting of approximately 4 million square feet for approximately $170 million.
The Company also has entered into contracts to acquire eleven additional properties for a combined purchase price of approximately $75 million. These contracts are subject to various closing conditions which have not yet been satisfied, so there can be no assurance that these transactions will be consummated.
The Company also signed one new lease in June consisting of approximately 42,000 square feet and one renewal of an existing lease consisting of approximately 343,000 square feet.
With these June leases, the Company has executed leases consisting of over 823,000 square feet in the second quarter of 2013. The second quarter's total leasing activity consisted of approximately 411,000 square feet of new leases and approximately 412,000 square feet of renewal leases. The tenant retention rate for the leases expiring in the second quarter of 2013 was 51%. The Company's occupancy rate for the second quarter decreased to 93.9% from 95.4% at the end of the first quarter of 2013. The low retention number and occupancy decline for the quarter are principally the result of the previously disclosed significant move out in Sun Prairie, Wisconsin. Year to date tenant retention rate for the Company is 72%.
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