Stag Industrial, Inc. · NYSE:STAG
Stag Industrial — Investor Presentation (November 2021)
22 slides from Stag Industrial's investor presentation, November 2021
Slide 1: STAG Industrial Fall 2021
STAG INDUSTRIAL Fall 2021 STAG INDUSTRIAL
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: Thoughtful Approach to Industrial Real Estate
THOUGHTFUL APPROACH TO INDUSTRIAL REAL ESTATE is an owner and operator of industrial real estate Platform able to address a large opportunity in an attractive asset class Only pure-play industrial REIT active across the entire domestic Relative value investment strategy driven by a robust industrial
Slide 4: Significant Transformation Since IPO
SIGNIFICANT TRANSFORMATION SINCE IPO IPO1 Q3 2021 Square Feet (millions) 14.2 103.4 Properties 93 517 Portfolio Number of States 26 40 Transformation Flex / Office (% ABR) 21.1% 0.3% IPO Q3 2021 Equity market capitalization (millions) $290 $6,799 Net debt to Run Rate Adjusted EBITDA 5.9x 4.8x Balanc
Slide 5: Building Blocks of Growth
BUILDING BLOCKS OF GROWTH HISTORICAL TREND 2021 GUIDANCE NOTES Average same store cash NOI growth of ~1.0% over past Same store cash NOI growth of 3.25% - 3.75% Highest level of guidance presented in company history six years • Retention range of 75 – 80% Driven by increase in rental escalators and
Slide 6: Operational Expertise Focused on Maximizing Cash Flow
OPERATIONAL EXPERTISE FOCUSED ON MAXIMIZING CASH FLOW REGIONAL ASSET MANAGEMENT Operational supported by local brokers on all new expertise allows and renewal leasing transactions STAG to pursue and acquire value-add opportunities CUSTOMER SOLUTIONS GROUP with corporate and portfolio wide context to
Slide 7: Multi-Faceted Approach to Creating Value
MULTI-FACETED APPROACH TO CREATING VALUE CASE STUDIES: VALUE ADDED THROUGH OPERATIONS Multi-Site Value Creation – Northern IN Uncertain Tenancy – Garland, TX Long Term Extension – Memphis, TN Acquired the building in October 2020 Acquired in September 2019 with 5 years of lease term Acquired the bui
Slide 8: Demonstration of Portfolio Premium
DEMONSTRATION OF PORTFOLIO PREMIUM PORTFOLIO 2016 2018 2016 PORTFOLIO 2018 PORTFOLIO DISPOSITIONS PORTFOLIO PORTFOLIO CHARACTERISTICS Number of buildings 6 7 Square feet 1.6 million 1.8 million Average building size 261,593 SF 250,494 SF WA lease term 4.2 years 6.5 years RETURN PROFILE Acquisition c
Slide 9: Industrial Real Estate Offers Attractive Opportunity
INDUSTRIAL REAL ESTATE OFFERS ATTRACTIVE OPPORTUNITY Large and highly Stable cash flow due to E-commerce and supply fragmented asset class GDP growth and high tenant retention and chain reconfiguration The 20 largest owners of U.S. industrial personal consumption drive low capital expenditure provid
Slide 10: Broad Based Opportunity Set Large Target Market
BROAD BASED OPPORTUNITY SET LARGE TARGET MARKET U.S. industrial market is more than $1 trillion in total size1 $1 Trillion Total Industrial Market1 STAG’s opportunity set spans the top 60+ 0.6% markets in the U.S. Relative value investment strategy across all fungible industrial markets enhances val
Slide 11: Process Driven Approach to Address Attractive Opportunity
PROCESS DRIVEN APPROACH TO ADDRESS ATTRACTIVE OPPORTUNITY Value created via granular approach to acquisitions across a broad opportunity ACQUISITION set – relative value investment strategy employed with portfolio premium value created upon acquisition PIPELINE $4.0 Benefit from relationships with r
Slide 12: Emphasis on Diversification
EMPHASIS ON DIVERSIFICATION Portfolio spans 60+ markets ATTENTION TO DIVERSIFICATION REDUCES RISK AND Largest market exposure is less than 8% of ABR ENHANCES VALUE Portfolio includes exposure to 45+ industries PORTFOLIO WIDELY DIVERSIFIED ACROSS GEOGRAPHY, Largest tenant is less than 4% of ABR TENAN
Slide 13: Sophisticated and Diverse Tenant Base
SOPHISTICATED AND DIVERSE TENANT BASE In-depth tenant credit analysis and ongoing Dedicated credit analysis team of four Focus on single-tenant industrial real estate results credit monitoring professionals (two CFA charter holders) in larger and thus more sophisticated tenants TOP TENANT LESS THAN
Slide 14: Balance Sheet Discipline
BALANCE SHEET DISCIPLINE CONSERVATIVE BALANCE SHEET POSITIONED TO SUPPORT GROWTH Conservative Capitalization Fixed Rate (in $ millions) Borrower 1 - $56 $0 Secured Preferred 2.5% Debt Equity Floating (revolving credit facility only) 0.6% 0.0% $1,924 Unsecured Debt $6,799 21.9% Common Equity at 97.5%
Slide 15: Compelling Valuation
COMPELLING VALUATION Growing Income Value Creation Low Risk • Internal growth with long history of • Attractive asset class that is difficult to aggregate • Widely diversified portfolio across success managing portfolio geography, tenancy, industry, lease • Granular investment approach to identify r
Slide 16: ESG - Environmental
ESG - ENVIRONMENTAL GREEN LEASE LEADERS AWARD RECIPIENT SOLAR PANEL INSTALLATION Recognizes forward-thinking companies that utilize energy Leverage rooftop square footage to create clean energy efficient and sustainable leases Gold level awarded in 2020 Eleven installations totaling 16 MW completed
Slide 17: ESG - Social and Governance
ESG - SOCIAL AND GOVERNANCE SOCIAL RESPONSIBILITY GOVERNANCE Focus on efforts supporting children, young adults, equality, Diverse board (33% women and minorities with lead and social justice independent director) Shareholder friendly bylaws including majority voting and Support provided through dir
Slide 18: Appendix
INDUSTRIAL APPENDIX
Slide 19: Non-GAAP Financial Measures & Other Definitions
NON-GAAP FINANCIAL MEASURES & OTHER DEFINITIONS Acquisition Capital Expenditures: We define Acquisition Capital Expenditures as Recurring and Non-Recurring Capital Expenditures identified at the time of acquisition. Acquisition Capital Expenditures also include new lease commissions and tenant impro
Slide 20: Non-GAAP Financial Measures & Other Definitions
NON-GAAP FINANCIAL MEASURES & OTHER DEFINITIONS Earnings before Interest, Taxes, Depreciation, and Amortization for Real Estate (EBITDAre), Adjusted EBITDAre, Annualized Adjusted EBITDAre, and Run Rate Adjusted EBITDAre: We define EBITDAre in accordance with the standards established by the National
Slide 21: Non-GAAP Financial Measures & Other Definitions
NON-GAAP FINANCIAL MEASURES & OTHER DEFINITIONS GAAP: We define GAAP as generally accepted accounting principles in the United States. Liquidity: We define Liquidity as the amount of aggregate undrawn nominal commitments the Company could immediately borrow under the Company’s unsecured debt instrum
Slide 22: Non-GAAP Financial Measures & Other Definitions
NON-GAAP FINANCIAL MEASURES & OTHER DEFINITIONS Recurring Capital Expenditures: We define Recurring Capital Expenditures as capital items required to sustain existing systems and capital items which generally have a shorter useful life. Recurring Capital Expenditures funded by parties other than the
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