Market Overview

STAG Industrial Announces First Quarter 2019 Results

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BOSTON, April 30, 2019 /PRNewswire/ -- STAG Industrial, Inc. (the "Company") (NYSE:STAG), today announced its financial and operating results for the quarter ended March 31, 2019.

"It has been an active start to 2019 for STAG" said Ben Butcher, Chief Executive Officer of the Company. "The Company achieved a record first quarter acquisition volume and produced strong same-store cash NOI growth and cash releasing spreads. This combined with a successful equity transaction has set STAG up for continued success in 2019."

First Quarter 2019 Highlights

  • Reported $0.05 of net income per basic and diluted common share for the first quarter of 2019, as compared to $0.22 of net income per basic and diluted common share for the first quarter of 2018. Reported $5.8 million of net income attributable to common stockholders for the first quarter of 2019 compared to net income attributable to common stockholders of $21.7 million for the first quarter of 2018.
  • Achieved $0.45 of Core FFO per diluted share for the first quarter of 2019, an increase of 4.7% compared to the first quarter of 2018 of $0.43. Generated Core FFO of $53.2 million for the first quarter of 2019 compared to $43.8 million for the first quarter of 2018, an increase of 21.4%.
  • Generated Cash NOI of $74.9 million for the first quarter of 2019, an increase of 16.7% compared to the first quarter of 2018 of $64.2 million.
  • Acquired 10 buildings in the first quarter of 2019, consisting of 2.4 million square feet, for $185.4 million with a weighted average Capitalization Rate of 6.6%.
  • Sold five buildings in the first quarter of 2019, consisting of 1.0 million square feet for $17.9 million, resulting in a net gain of $1.3 million.
  • Achieved an Occupancy Rate of 95.2% on the total portfolio and 95.7% on the Operating Portfolio as of March 31, 2019.
  • Commenced Operating Portfolio leases of 2.6 million square feet for the first quarter of 2019, resulting in a Cash Rent Change and Straight-line Rent Change of 14.9% and 24.3%, respectively.
  • Experienced 80.7% Retention for 3.1 million square feet of leases expiring in the quarter.
  • Produced Same Store cash NOI growth of 3.5% for the first quarter of 2019 compared to the first quarter of 2018.
  • Raised gross proceeds of $150.2 million of equity through the Company's at-the-market offering ("ATM") program for the first quarter of 2019.
  • Subsequent to quarter end on April 4, 2019, the Company closed a public offering with gross proceeds of $218.7 million, inclusive of underwriters' option to purchase additional shares.

Please refer to the Non-GAAP Financial Measures and Other Definitions section at the end of this release for definitions of capitalized terms used in this release.

The Company will host a conference call tomorrow, May 1, 2019 at 10:00 a.m. (Eastern Time), to discuss the quarter's results and provide information about acquisitions, operations, capital markets and corporate activities. Details of the call can be found at the end of this release.

Key Financial Measures

FIRST QUARTER 2019 KEY FINANCIAL MEASURES




Three months ended
March 31,




Metrics


2019


2018


% Change


(in $000s, except per share data)








Net income attributable to common stockholders


$5,807


$21,676


(73.2)

%


 Net income per common share — basic


$0.05


$0.22


(77.3)

%


 Net income per common share — diluted


$0.05


$0.22


(77.3)

%


Cash NOI


$74,929


$64,210


16.7

%


Same Store Cash NOI (1)


$61,291


$59,227


3.5

%


Adjusted EBITDAre


$67,637


$57,391


17.9

%


Core FFO


$53,187


$43,828


21.4

%


 Core FFO per share / unit — basic


$0.45


$0.43


4.7

%


 Core FFO per share / unit — diluted


$0.45


$0.43


4.7

%


(1) The Same Store pool accounted for 80.8% of the total portfolio square footage for the three months ended March 31, 2019.

Definitions of the above-mentioned non-GAAP financial measures, together with reconciliations to net income (loss) in accordance with GAAP, appear at the end of this release. Please also see the Company's supplemental information package for additional disclosure.

Acquisition and Disposition Activity

For the three months ended March 31, 2019, the Company acquired 10 buildings for $185.4 million with an Occupancy Rate of 85.2% upon acquisition. The chart below details the acquisition activity for the quarter:

FIRST QUARTER 2019 ACQUISITION ACTIVITY


Market

Date
Acquired

Square Feet

Buildings

Purchase
Price ($000s)

W.A. Lease
Term (Years)

Capitalization
Rate

Cincinnati/Dayton, OH

1/24/2019

176,000

1

$9,965

4.3


Pittsburgh, PA

2/21/2019

455,000

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