STAG Industrial Announces Third Quarter 2017 Results

BOSTON, Nov. 2, 2017

"The third quarter was very successful both from an operations and acquisitions standpoint," said Ben Butcher, Chief Executive Officer of the Company.  "The success year to date has our company firmly on track to meet our goals set at the beginning of the year."

Third Quarter 2017 Highlights

• Reported $0.20 of net income per basic and diluted share for the third quarter of 2017, as compared to $0.05 of net loss per basic and diluted share for the third quarter of 2016. Reported $18.5 million of net income attributable to common stockholders for the third quarter of 2017 compared to net loss attributable to common stockholders of $3.8 million for the third quarter of 2016.
• Achieved $0.43 of Core FFO per diluted share for the third quarter of 2017, an increase of 7.5% compared to the third quarter of 2016 of $0.40. Generated Core FFO of $42.0 million compared to $30.3 million for the third quarter of 2016, an increase of 38.8%.
• Generated Cash NOI of $62.0 million for the third quarter of 2017, an increase of 19.4% compared to the third quarter of 2016 of $51.9 million. Generated Cash NOI of $176.5 million compared to $150.4 million for the nine months ended September 30, 2017, an increase of 17.4%.
• Acquired 10 buildings in the third quarter of 2017, consisting of 2.3 million square feet, for $119.7 million with a weighted average Capitalization Rate of 7.5%.
• Sold five buildings in the third quarter of 2017, consisting of 791,064 square feet for $34.7 million.
• Achieved an Occupancy Rate of of 94.6% on the total portfolio and 95.4% on the Operating Portfolio as of September 30, 2017.
• Executed Operating Portfolio leases for 2.0 million square feet for the third quarter of 2017. Resulting in a cash rent change and GAAP Rent Change of 10.5% and 18.7%, respectively.
• Experienced 70.9% Retention for 1.3 million square feet of leases expiring in the quarter. Resulting in a cash rent change and GAAP Rent Change of 8.5% and 15.3%, respectively.
• Raised gross proceeds of $65.2 million of equity through the Company's at-the-market offering ("ATM") program for the third quarter of 2017. Subsequent to quarter end and through November 2, 2017, raised gross proceeds of $5.1 million through the ATM program.
• Originated a new five and a half year, $150 million term loan and fully repaid $88 million of secured debt during the third quarter of 2017.

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, November 3, 2017 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