Stag Industrial, Inc. · NYSE:STAG
Stag Industrial — Investor Presentation (November 2023)
18 slides from Stag Industrial's investor presentation, Nov 9, 2023
Slide 1: Fall 2023 Investor Presentation
F a l l 2 0 2 3 I n ve s t o r P r e s e n t a t i o n
Slide 2: Forward-Looking Statements & Definitions
FORWARD-LOOKING STATEMENTS & DEFINITIONS Forward-Looking Statements This presentation 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. (“S
Slide 3: STAG Overview
STAG OVERVIEW 2011 STAG IPO NYSE Only pure-play industrial REIT active across CBRE Tier 1 112 Million SF all CBRE Tier 1 industrial real estate Market Focus 1 Owned 2 markets1 Platform designed to provide growth S&P MidCap 400 $8.9 Billion through sophisticated industrial operation Member Enterprise
Slide 4: Portfolio Metrics
PORTFOLIO METRICS As of Q3 ‘23 Number of States 41 Portfolio Portfolio CBRE Tier 1 and Tier 2 Exposure By % ABR 86% & Weighted Average Lease Term (Years) 4.5 Growth Quality Multi-Tenant Industrial % NRA1 2 24.7% Equity Market Capitalization (millions) $6,402 Free Cash Flow (annual) after Dividends 3
Slide 5: Supply Dynamics
SUPPLY DYNAMICS STAG’s average lease size less 47% of the US construction Only ~18% of the US ~60% of US construction construction pipeline is in than 150k SF and median lease pipeline is isolated within the pipeline is greater than 300k SF STAG’s top 10 markets size less than 110k SF top 10 domesti
Slide 6: Demand Dynamics: Ecommerce Activity and Supply Chain Configuration
DEMAND DYNAMICS: ECOMMERCE ACTIVITY AND SUPPLY CHAIN CONFIGURATION E-commerce and supply ~31% of STAG’s portfolio chain reconfiguration are US has meaningful incremental e-commerce handles e-commerce activity 1 secular runway based on historical UK rate demand drivers E-Commerce Retail Sales (%) of
Slide 7: Demand Dynamics: Nearshoring & Onshoring
DEMAND DYNAMICS: NEARSHORING & ONSHORING Accelerating re-shoring and near-shoring trends continue to drive domestic warehouse space demand Approximately 30% of STAG’s portfolio is located within 60-mile radius of Megasite Projects 1 STAG SF (in Millions) 0.0-0.5 0.5-1.0 1.0-2.1 2.1-5.3 5.3-10.4 Mega
Slide 8: Nearshoring Case Study - El Paso, TX
NEARSHORING CASE STUDY - EL PASO, TX Corporate & Govt Investment/Infrastructure • More than 70 Fortune 500 firms heavily invested in region • Major bridge infrastructure for freight transport • El Paso named #1 foreign-trade zone location for large tenants in the Americas Supportive Regulatory Clima
Slide 9: Onshoring Case Study - South Carolina
ONSHORING CASE STUDY - SOUTH CAROLINA South Carolina Features Attractive Profile for Manufacturing Investment • Easy access to growing ports, favorable tax incentives, and deep labor pools • BMW has invested $12.4 billion in its Spartanburg plant since 1994 • This includes the recent $1.7 billion to
Slide 10: Portfolio Evolution
PORTFOLIO EVOLUTION Market Rent Growth1 STAG’s portfolio rent growth exceeded market rent growth by 33.4% 9.6% 2 23.8% STAG Markets 2021 2022 2023 2024 - 2027 forecast CBRE Tier 1 market Mid-Single forecast 1 7.1% 10.3% 8.1% Digits 2020 2021 2022 Q3 2023 YTD STAG Market 1. CBRE-EA Tier 1 industrial
Slide 11: Portfolio Optimization & Organizational Structure
PORTFOLIO OPTIMIZATION & ORGANIZATIONAL STRUCTURE Market Research Acquisitions OPERATIONS PLATFORM Accounting & Finance Operations Platform Asset Property Finance Development Construction Management Management Legal Capital Markets Credit % of CBRE Tier 1 2023 cash same store growth guidance range o
Slide 12: Value-Add & Building Expansion Activity
VALUE-ADD & BUILDING EXPANSION ACTIVITY STAG has completed more Value-Add projects since 2020 than IPO to 2019 20+ value-add leasing projects identified ~ 20 building expansion projects Leveraging local market expertise and and executed through STAG’s leasing & identified & completed by STAG’s Asset
Slide 13: Development Projects
DEVELOPMENT PROJECTS STEVE T. KIMBALL BRIAN M. LAMONT Executive Vice President of Senior Vice President, Head of Real Estate Operations Development & ESG Four development projects completed and in-process to date BURLINGTON, NJ WEST SACRAMENTO, CA GREER, SC (PORT 290) TAMPA, FL 1 Acquired 500K SF bu
Slide 14: Acquisitions Platform
ACQUISITIONS PLATFORM PROCESS DRIVEN APPROACH TO ADDRESS ATTRACTIVE OPPORTUNITY Value created via granular approach to acquisitions across a broad opportunity set Benefit from relationships with real estate brokers developed over time who value STAG’s institutional transactional certainty MICHAEL C.
Slide 15: Balance Sheet Discipline
BALANCE SHEET DISCIPLINE CONSERVATIVE BALANCE SHEET POSITIONED TO SUPPORT GROWTH Conservative Capitalization Fixed Rate Borrower 1 Low Leverage (in $ millions) As of As of $8 12.7% 12/31/22 9/30/23 Secured Debt Floating 0.1% (revolving credit Net Debt to Annualized $2,550 facility only) Run Rate Adj
Slide 16: Compelling Valuation
COMPELLING VALUATION Growing Income IMPLIED CAP RATE 1 • Internal growth with long history of success managing portfolio 6.1% 5.2% • External growth with large opportunity set and robust investment STAG Peer Average 2 pipeline • Opportunistic development projects by partnering local and regional dev
Slide 17: ESG - Environmental
ESG - ENVIRONMENTAL GREEN LEASE LEADERS SOLAR PANEL AWARD RECIPIENT INSTALLATION Recognizes forward-thinking Leverage rooftop square footage to companies that utilize energy efficient create clean energy and sustainable leases 34.9 MW projected to be completed by Gold level since 2020 the end of 202
Slide 18: ESG – Social and Governance
ESG – SOCIAL AND GOVERNANCE GOVERNANCE SOCIAL RESPONSIBILITY Diverse board (30% women and minorities) Focus on efforts supporting children, young adults, and promoting equal and independent chairman opportunity across the U.S. — — Shareholder friendly bylaws including majority voting Support provide
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