Stag Industrial, Inc. · NYSE:STAG
Stag Industrial — Investor Presentation (May 2025)
20 slides from Stag Industrial's investor presentation, May 2025
Slide 1: Spring 2025 Investor Presentation
S p r i n g 2 0 2 5 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 1 117.6 Million SF all CBRE Tier 1 industrial real estate Market Focus 1 Owned 2 markets1 Platform designed to provide growth S&P MidCap 400 $9.9 Billion through sophisticated industrial operation Member Enterpri
Slide 4: Portfolio Metrics
PORTFOLIO METRICS As of Q1 ‘25 Number of States 41 Portfolio Portfolio CBRE Tier 1 and Tier 2 Exposure By % ABR 87% & Weighted Average Lease Term (Years) 4.2 Growth Quality Multi-Tenant Industrial % NRA1 2 26.7% Equity Market Capitalization (millions) $6,885 Free Cash Flow (annual) after Dividends 3
Slide 5: Supply Dynamics
SUPPLY DYNAMICS 42% of the US construction STAG’s average lease size less Only 14% of the US ~53% of US construction pipeline is isolated within the than 150k SF and median lease construction pipeline is in pipeline is greater than 300k SF top 10 most active construction size approximately 100k SF S
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 one-third 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.
Slide 8: Portfolio Evolution
PORTFOLIO EVOLUTION Market Rent Growth1 STAG’s portfolio rent 38.6% growth exceeded market rent growth by 11.4 percentage points 2 27.2% STAG Markets 2021 2022 2023 2024 2025 2026 - 2029 STAG’s CBRE Mid-Single Tier 1 market 7.1% 10.3% 7.1% ~4% 0-2% forecast 1 Digits 2020 2021 2022 2023 2024 Q1 2025
Slide 9: 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 78.5% of expected 2025 new and renewal leasing has been addre
Slide 10: 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 11: Development Projects
DEVELOPMENT PROJECTS STEVE T. KIMBALL BRIAN M. LAMONT Executive Vice President of Senior Vice President, Head of Real Estate Operations Development and Sustainability Completed the development of seven buildings with six more buildings in-process to date 575 MADDOX-SIMPSON PARKWAY 28925 NW UNION ROA
Slide 12: 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 13: 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 $4 16.8% 12/31/24 3/31/25 Secured Debt Floating < 0.1% (revolving credit Net Debt to Annualized $3,037 facility only) Run Rate A
Slide 14: Building Blocks of Growth
BUILDING BLOCKS OF GROWTH HISTORICAL TREND 2025 GUIDANCE NOTES Average Same Store Cash NOI growth of ~2.8% over past Same Store Cash NOI growth of 3.50% - 4.00% Expect recent Same Store Cash NOI growth to be ten years • Retention range of 70% – 75% sustainable, driven by increase in rental escalator
Slide 15: Compelling Valuation
COMPELLING VALUATION Growing Income IMPLIED CAP RATE 1 • Internal growth with long history of success managing portfolio 6.8% 5.7% • External growth with large opportunity set and robust investment STAG Peer Average 2 pipeline • Opportunistic development projects by partnering local and regional dev
Slide 16: 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 30.3 MW completed by the end of 2023 Gold level since 2020 10+ MW expecte
Slide 17: ESG – Social and Governance
ESG – SOCIAL AND GOVERNANCE GOVERNANCE SOCIAL RESPONSIBILITY Diverse board (36% 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
Slide 18: Appendix
APPENDIX
Slide 19: 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 20: Onshoring Case Study - Georgia
ONSHORING CASE STUDY - GEORGIA Attractive Profile for Manufacturing Investment • Easy access to growing ports, favorable tax incentives, and deep labor pools • One of the Fastest growing container ports in the U.S. with connectivity to interior via growing Inland Port Complex • Georgia named #1 stat