Stag Industrial, Inc. · NYSE:STAG
Stag Industrial — Investor Presentation (March 2023)
22 slides from Stag Industrial's investor presentation, March 2023
Slide 1: STAG Industrial Winter 2023
STAG INDUSTRIAL Winter 2023 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: Portfolio Growth & Quality
PORTFOLIO GROWTH & QUALITY IPO Era1 Q4 2015 TODAY 2 Portfolio Sq. Ft. (millions) 14.2 54.7 111.7 Properties 93 291 562 Portfolio Growth Number of States 26 38 41 IPO Era Q4 2015 TODAY Prim. and Sec. Market Exp. by % ABR 74.1% 87.6% 96.4% Flex/Office (% of ABR) 21.1% 3.9% 0.1% Portfolio Quality Weigh
Slide 5: Portfolio Optimization & Balance Sheet
PORTFOLIO OPTIMIZATION & BALANCE SHEET IPO Era 1 Q4 2015 TODAY 2 WA Portfolio Escalators 1.25% ~ 1.75% ~ 2.50% Cash Rent Change 4.7% 1.6% > 25% Internal Growth GAAP Rent Change 6.1% 7.1% > 30% Optimization Cash ssNOI % Growth No 0.6% ~ 4.75% Growth IPO Era Q4 2015 TODAY Equity market capitalization
Slide 6: Building Blocks of Growth
BUILDING BLOCKS OF GROWTH HISTORICAL TREND 2023 GUIDANCE NOTES Average same store cash NOI growth of ~2% over past Same store cash NOI growth of 4.50% - 5.00% Expect recent same store cash NOI growth to be eight years • Retention range of 65 – 75% sustainable, driven by increase in rental escalators
Slide 7: 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 8: Multi-Faceted Approach to Creating Value
MULTI-FACETED APPROACH TO CREATING VALUE CASE STUDIES: VALUE ADDED THROUGH OPERATIONS Multi-Site Value Creation – Northern IN Early Termination – Livonia, MI Development – Sacramento, CA Acquired the building in October 2020. Acquired December 2021 while project was under Tenant was set to expire in
Slide 9: Impact of Pandemic on Ecommerce Activity and Supply Chain Configuration
IMPACT OF PANDEMIC ON ECOMMERCE ACTIVITY AND SUPPLY CHAIN CONFIGURATION Accelerating re-shoring and “Just-in-case” inventory and E-commerce and supply near-shoring trends continue reverse logistics needs ~31% of STAG’s portfolio chain reconfiguration to drive domestic warehouse incrementally drive i
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+ 0.7% 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 only 3% of ABR TENANT, IN
Slide 13: Sophisticated and Diverse Tenant Base
SOPHISTICATED AND DIVERSE TENANT BASE In-depth tenant credit analysis and ongoing Dedicated credit analysis team of three Focus on industrial real estate results credit monitoring professionals (two CFA charter holders) in larger and thus more sophisticated tenants TOP TENANT ONLY 3% OF ABR TOP 20 T
Slide 14: Balance Sheet Discipline
BALANCE SHEET DISCIPLINE CONSERVATIVE BALANCE SHEET POSITIONED TO SUPPORT GROWTH Conservative Capitalization Fixed Rate (in $ millions) Borrower (1) $8 - Secured Debt 7.0% 0.1% Floating (revolving credit facility only) $2,500 Unsecured $5,917 Debt Common Equity at 29.7% Market Value 93.0% Fixed Rate
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 Twelve installations totaling 25.6 MW complete
Slide 17: ESG - Social and Governance
ESG - SOCIAL AND GOVERNANCE SOCIAL RESPONSIBILITY GOVERNANCE Focus on efforts supporting children, young adults, equality, Diverse board (30% women and minorities with lead and social justice across the U.S. independent director) Shareholder friendly bylaws including majority voting and Support prov
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 capital expenditures identified at the time of acquisition. Acquisition Capital Expenditures also include new lease commissions and tenant improvements for space that was n
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, Run Rate Adjusted EBITDAre, and Annualized Run Rate Adjusted EBITDAre: We define EBITDAre in accordance with th
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 Renewal Lease: We define a Renewal Lease as a lease signed by an existing tenant to extend the term for 12 months or more, including (i) a renewal of the same space as the current lease at lease expiration, (ii) a renewal of only a portion of the curre