Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 25, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-34907 | |
Entity Registrant Name | STAG Industrial, Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 27-3099608 | |
Entity Address, Address Line One | One Federal Street | |
Entity Address, Address Line Two | 23rd Floor | |
Entity Address, City or Town | Boston, | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02110 | |
City Area Code | 617 | |
Local Phone Number | 574-4777 | |
Title of 12(b) Security | Common stock, $0.01 par value per share | |
Trading Symbol | STAG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 179,664,319 | |
Entity Central Index Key | 0001479094 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Central Index Key | 0001479094 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Rental Property: | ||
Land | $ 652,173,000 | $ 647,098,000 |
Buildings and improvements, net of accumulated depreciation of $841,488 and $763,128, respectively | 4,684,280,000 | 4,706,745,000 |
Deferred leasing intangibles, net of accumulated amortization of $357,435 and $328,848, respectively | 463,569,000 | 508,935,000 |
Total rental property, net | 5,800,022,000 | 5,862,778,000 |
Cash and cash equivalents | 13,511,000 | 25,884,000 |
Restricted cash | 1,023,000 | 905,000 |
Tenant accounts receivable | 112,334,000 | 115,509,000 |
Prepaid expenses and other assets | 76,767,000 | 71,733,000 |
Interest rate swaps | 72,016,000 | 72,223,000 |
Operating lease right-of-use assets | 30,513,000 | 31,313,000 |
Assets held for sale, net | 0 | 4,643,000 |
Total assets | 6,106,186,000 | 6,184,988,000 |
Liabilities: | ||
Unsecured credit facility | 216,000,000 | 175,000,000 |
Unsecured term loans, net | 1,021,106,000 | 1,020,440,000 |
Unsecured notes, net | 1,195,790,000 | 1,295,442,000 |
Mortgage notes, net | 7,727,000 | 7,898,000 |
Accounts payable, accrued expenses and other liabilities | 91,994,000 | 97,371,000 |
Tenant prepaid rent and security deposits | 44,354,000 | 40,847,000 |
Dividends and distributions payable | 22,515,000 | 22,282,000 |
Deferred leasing intangibles, net of accumulated amortization of $27,467 and $24,593, respectively | 28,412,000 | 32,427,000 |
Operating lease liabilities | 34,429,000 | 35,100,000 |
Total liabilities | 2,662,327,000 | 2,726,807,000 |
Commitments and contingencies (Note 11) | ||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Preferred stock | 0 | 0 |
Common stock, par value $0.01 per share, 300,000,000 shares authorized at June 30, 2023 and December 31, 2022, 179,660,771 and 179,248,980 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively | 1,797,000 | 1,792,000 |
Additional paid-in capital | 4,201,551,000 | 4,188,677,000 |
Cumulative dividends in excess of earnings | (907,061,000) | (876,145,000) |
Accumulated other comprehensive income | 70,313,000 | 70,500,000 |
Total stockholders’ equity | 3,366,600,000 | 3,384,824,000 |
Noncontrolling interest | 77,259,000 | 73,357,000 |
Total equity | 3,443,859,000 | 3,458,181,000 |
Total liabilities and equity | $ 6,106,186,000 | $ 6,184,988,000 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Building and Improvements, accumulated depreciation | $ 841,488 | $ 763,128 |
Deferred leasing intangible assets, accumulated amortization | 357,435 | 328,848 |
Deferred leasing intangible liabilities, accumulated amortization | $ 27,467 | $ 24,593 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 20,000,000 | 20,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 300,000,000 | 300,000,000 |
Common Stock, Shares, Outstanding | 179,660,771 | 179,248,980 |
Common Stock, Shares, Issued | 179,660,771 | 179,248,980 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues [Abstract] | ||||
Rental income | $ 171,439 | $ 161,057 | $ 344,707 | $ 319,658 |
Other income | 255 | 443 | 540 | 1,051 |
Total revenue | 171,694 | 161,500 | 345,247 | 320,709 |
Expenses | ||||
Property | 32,675 | 28,874 | 68,556 | 60,649 |
General and administrative | 12,060 | 12,234 | 24,736 | 24,547 |
Depreciation and amortization | 68,494 | 69,279 | 137,438 | 136,645 |
Other expenses | 357 | 532 | 3,336 | 1,029 |
Total expenses | 113,586 | 110,919 | 234,066 | 222,870 |
Other income (expense) | ||||
Interest and other income | 17 | 23 | 36 | 57 |
Interest expense | (22,860) | (17,896) | (45,472) | (35,155) |
Gain on the sales of rental property, net | 17,532 | 376 | 37,660 | 24,331 |
Total other income (expense) | (5,311) | (17,497) | (7,776) | (10,767) |
Net income | 52,797 | 33,084 | 103,405 | 87,072 |
Less: income attributable to noncontrolling interest | 1,191 | 708 | 2,333 | 1,870 |
Net income attributable to STAG Industrial, Inc. | 51,606 | 32,376 | 101,072 | 85,202 |
Less: amount allocated to participating securities | 53 | 59 | 106 | 121 |
Net income attributable to common stockholders | $ 51,553 | $ 32,317 | $ 100,966 | $ 85,081 |
Weighted average common shares outstanding — basic | 179,413 | 179,049 | 179,305 | 178,442 |
Weighted average common shares outstanding — diluted | 179,738 | 179,144 | 179,518 | 178,586 |
Net income per share attributable to common stockholders — basic | $ 0.29 | $ 0.18 | $ 0.56 | $ 0.48 |
Net income per share attributable to common stockholders — diluted | $ 0.29 | $ 0.18 | $ 0.56 | $ 0.48 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 52,797 | $ 33,084 | $ 103,405 | $ 87,072 |
Other comprehensive income (loss): | ||||
Income (loss) on interest rate swaps | 15,821 | 12,509 | (191) | 49,746 |
Other comprehensive income (loss) | 15,821 | 12,509 | (191) | 49,746 |
Comprehensive income | 68,618 | 45,593 | 103,214 | 136,818 |
Income attributable to noncontrolling interest after preferred stock dividends | (1,191) | (708) | (2,333) | (1,870) |
Other comprehensive (income) loss attributable to noncontrolling interest | (357) | (266) | 4 | (1,068) |
Comprehensive income attributable to STAG Industrial, Inc. | $ 67,070 | $ 44,619 | $ 100,885 | $ 133,880 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Cumulative Dividends in excess of Earnings | Accumulated Other Comprehensive Income (Loss) | Total Stockholders' Equity | Noncontrolling Interest - Unit holders in Operating Partnership |
Balance at Dec. 31, 2021 | $ 3,393,587 | $ 0 | $ 1,777 | $ 4,130,038 | $ (792,332) | $ (11,783) | $ 3,327,700 | $ 65,887 |
Balance (in shares) at Dec. 31, 2021 | 177,769,342 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Proceeds from sales of common stock, net | $ 54,883 | $ 13 | 54,870 | 54,883 | ||||
Proceeds from sales of common stock (in shares) | 1,328,335 | |||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.73 | |||||||
Dividends, Common Stock | (130,527) | |||||||
Dividends | (130,527) | |||||||
Distribution Made to Limited Partner, Cash Distributions Declared | (3,384) | |||||||
Dividends and Distributions, Net | $ (133,911) | |||||||
APIC, Share-Based Payment Arrangement, Option, Increase for Cost Recognition | (1,208) | |||||||
Non-cash compensation activity, net | 5,118 | (1,987) | 7,105 | |||||
Non-cash compensation activity (in shares) | 49,061 | |||||||
Non-cash compensation activity (in excess of earnings) | $ 1 | (780) | ||||||
Redemption of common units to common stock | $ 1 | 1,216 | 1,217 | (1,217) | ||||
Redemption of common units to common stock (in shares) | 65,000 | |||||||
Rebalancing of noncontrolling interest | (2,751) | (2,751) | 2,751 | |||||
Other comprehensive income | 49,746 | 48,678 | 48,678 | 1,068 | ||||
Net income | 87,072 | 85,202 | 85,202 | 1,870 | ||||
Balance at Jun. 30, 2022 | 3,456,495 | 0 | $ 1,792 | 4,182,165 | (838,437) | 36,895 | 3,382,415 | 74,080 |
Balance (in shares) at Jun. 30, 2022 | 179,211,738 | |||||||
Balance at Dec. 31, 2021 | 3,393,587 | 0 | $ 1,777 | 4,130,038 | (792,332) | (11,783) | 3,327,700 | $ 65,887 |
Balance (in shares) at Dec. 31, 2021 | 177,769,342 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Redemption of common units to common stock (in shares) | 0 | |||||||
Balance at Dec. 31, 2022 | 3,458,181 | 0 | $ 1,792 | 4,188,677 | (876,145) | 70,500 | 3,384,824 | $ 73,357 |
Balance (in shares) at Dec. 31, 2022 | 179,248,980 | |||||||
Balance at Mar. 31, 2022 | 3,474,879 | 0 | $ 1,792 | 4,179,361 | (805,400) | 24,652 | 3,400,405 | 74,474 |
Balance (in shares) at Mar. 31, 2022 | 179,211,305 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Proceeds from sales of common stock, net | $ (93) | $ 0 | (93) | (93) | ||||
Proceeds from sales of common stock (in shares) | 0 | |||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.37 | |||||||
Dividends, Common Stock | (65,413) | |||||||
Dividends | (65,413) | |||||||
Distribution Made to Limited Partner, Cash Distributions Declared | (1,910) | |||||||
Dividends and Distributions, Net | $ (67,323) | |||||||
Non-cash compensation activity, net | 3,439 | 2,071 | 2,071 | 1,368 | ||||
Non-cash compensation activity (in shares) | 433 | |||||||
Non-cash compensation activity (in excess of earnings) | $ 0 | 0 | ||||||
Rebalancing of noncontrolling interest | 826 | 826 | (826) | |||||
Other comprehensive income | 12,509 | 12,243 | 12,243 | 266 | ||||
Net income | 33,084 | 32,376 | 32,376 | 708 | ||||
Balance at Jun. 30, 2022 | 3,456,495 | 0 | $ 1,792 | 4,182,165 | (838,437) | 36,895 | 3,382,415 | 74,080 |
Balance (in shares) at Jun. 30, 2022 | 179,211,738 | |||||||
Balance at Dec. 31, 2022 | 3,458,181 | 0 | $ 1,792 | 4,188,677 | (876,145) | 70,500 | 3,384,824 | 73,357 |
Balance (in shares) at Dec. 31, 2022 | 179,248,980 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Proceeds from sales of common stock, net | $ 8,495 | $ 3 | 8,492 | 8,495 | ||||
Proceeds from sales of common stock (in shares) | 249,016 | |||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.74 | |||||||
Dividends, Common Stock | (131,905) | |||||||
Dividends | (131,905) | |||||||
Distribution Made to Limited Partner, Cash Distributions Declared | 252 | |||||||
Dividends and Distributions, Net | $ (131,653) | |||||||
Non-cash compensation activity, net | 5,622 | (1,935) | (2,017) | 7,639 | ||||
Non-cash compensation activity (in shares) | 83,941 | |||||||
Non-cash compensation activity (in excess of earnings) | $ 1 | (83) | ||||||
Redemption of common units to common stock | $ 1 | 1,482 | 1,483 | $ (1,483) | ||||
Redemption of common units to common stock (in shares) | 78,834 | 0 | ||||||
Rebalancing of noncontrolling interest | 4,835 | 4,835 | $ (4,835) | |||||
Other comprehensive income | (191) | (187) | (187) | (4) | ||||
Net income | 103,405 | 101,072 | 101,072 | 2,333 | ||||
Balance at Jun. 30, 2023 | 3,443,859 | 0 | $ 1,797 | 4,201,551 | (907,061) | 70,313 | 3,366,600 | 77,259 |
Balance (in shares) at Jun. 30, 2023 | 179,660,771 | |||||||
Balance at Mar. 31, 2023 | 3,430,820 | 0 | $ 1,794 | 4,188,960 | (892,676) | 54,849 | 3,352,927 | 77,893 |
Balance (in shares) at Mar. 31, 2023 | 179,372,871 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Proceeds from sales of common stock, net | $ 8,647 | $ 3 | 8,644 | 8,647 | ||||
Proceeds from sales of common stock (in shares) | 249,016 | |||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.37 | |||||||
Dividends, Common Stock | (65,991) | |||||||
Dividends | (65,991) | |||||||
Distribution Made to Limited Partner, Cash Distributions Declared | (1,564) | |||||||
Dividends and Distributions, Net | $ (67,555) | |||||||
Non-cash compensation activity, net | 3,329 | 1,896 | 1,896 | 1,433 | ||||
Non-cash compensation activity (in shares) | 3,884 | |||||||
Non-cash compensation activity (in excess of earnings) | $ 0 | 0 | ||||||
Redemption of common units to common stock | $ 0 | 654 | 654 | (654) | ||||
Redemption of common units to common stock (in shares) | 35,000 | |||||||
Rebalancing of noncontrolling interest | 1,397 | 1,397 | (1,397) | |||||
Other comprehensive income | 15,821 | 15,464 | 15,464 | 357 | ||||
Net income | 52,797 | 51,606 | 51,606 | 1,191 | ||||
Balance at Jun. 30, 2023 | $ 3,443,859 | $ 0 | $ 1,797 | $ 4,201,551 | $ (907,061) | $ 70,313 | $ 3,366,600 | $ 77,259 |
Balance (in shares) at Jun. 30, 2023 | 179,660,771 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 103,405 | $ 87,072 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 137,438 | 136,645 |
Non-cash portion of interest expense | 1,948 | 1,744 |
Amortization of above and below market leases, net | (192) | (113) |
Straight-line rent adjustments, net | (9,466) | (8,089) |
Gain on the sales of rental property, net | (37,660) | (24,331) |
Non-cash compensation expense | 6,404 | 6,686 |
Change in assets and liabilities: | ||
Tenant accounts receivable | 10,719 | 1,307 |
Prepaid expenses and other assets | (13,081) | (10,915) |
Accounts payable, accrued expenses and other liabilities | (6,288) | 771 |
Tenant prepaid rent and security deposits | 2,996 | 411 |
Total adjustments | 92,818 | 104,116 |
Net cash provided by operating activities | 196,223 | 191,188 |
Cash flows from investing activities: | ||
Acquisitions of land and buildings and improvements | (37,425) | (294,387) |
Additions of land and buildings and improvements | (55,382) | (36,639) |
Acquisitions of other assets | 0 | 2,134 |
Acquisitions of tenant prepaid rent | (511) | 0 |
Payment to acquire operating lease right-of-use assets | 0 | (3,541) |
Proceeds from sales of rental property, net | 69,320 | 38,409 |
Acquisition deposits, net | 1,120 | 593 |
Acquisitions of deferred leasing intangibles | (3,750) | (40,751) |
Acquisitions of operating lease liabilities | 0 | 3,541 |
Net cash used in investing activities | (25,606) | (334,909) |
Cash flows from financing activities: | ||
Proceeds from unsecured credit facility | 337,000 | 871,000 |
Repayment of unsecured credit facility | (296,000) | (1,051,000) |
Proceeds from unsecured notes | 0 | 400,000 |
Repayments of Unsecured Debt | 100,000 | 0 |
Repayment of mortgage notes | (172) | (1,173) |
Payment of loan fees and costs | 0 | 2,119 |
Proceeds from sales of common stock, net | 8,532 | 54,797 |
Dividends and distributions | 131,420 | 133,537 |
Repurchase and retirement of share-based compensation | (812) | (1,596) |
Net cash provided by (used in) financing activities | (182,872) | 136,372 |
Decrease in cash and cash equivalents and restricted cash | (12,255) | (7,349) |
Cash and cash equivalents and restricted cash—beginning of period | 26,789 | 23,196 |
Cash and cash equivalents and restricted cash—end of period | 14,534 | 15,847 |
Supplemental disclosure: | ||
Cash paid for interest, net of capitalized interest | 44,842 | 33,105 |
Supplemental schedule of non-cash investing and financing activities | ||
Additions of land and buildings and improvements | 0 | (1,713) |
Transfer of other assets to building and other capital improvements | 0 | 1,713 |
Change in additions of land, building, and improvements included in accounts payable, accrued expenses and other liabilities | (3,018) | (7,064) |
Additions to building and other capital improvements from non-cash compensation | (26) | (40) |
Change in loan fees, costs, and offering costs included in accounts payable, accrued expenses and other liabilities | (37) | 27 |
Dividends and distributions payable | $ 22,515 | $ 22,282 |
Organization and Description of
Organization and Description of Business | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business STAG Industrial, Inc. (the “Company”) is an industrial real estate operating company focused on the acquisition and operation of industrial properties throughout the United States. The Company was formed as a Maryland corporation and has elected to be treated and intends to continue to qualify as a real estate investment trust (“REIT”) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended. The Company is structured as an umbrella partnership REIT, commonly called an UPREIT, and owns all of its properties and conducts substantially all of its business through its operating partnership, STAG Industrial Operating Partnership, L.P., a Delaware limited partnership (the “Operating Partnership”). As of June 30, 2023 and December 31, 2022, the Company owned a 97.8% and 97.9%, respectively, of the common units of the limited partnership interests in the Operating Partnership. The Company, through its wholly owned subsidiary, is the sole general partner of the Operating Partnership. As used herein, the “Company” refers to STAG Industrial, Inc. and its consolidated subsidiaries, including the Operating Partnership, except where context otherwise requires. As of June 30, 2023, the Company owned 558 industrial buildings in 41 states with approximately 111.1 million rentable square feet. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Interim Financial Information The accompanying interim financial statements have been presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-Q and Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim financial statements include all adjustments, consisting of normal recurring items, necessary for their fair statement in conformity with GAAP. Interim results are not necessarily indicative of results for a full year. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. Basis of Presentation The Company’s consolidated financial statements include the accounts of the Company, the Operating Partnership, and their consolidated subsidiaries. Interests in the Operating Partnership not owned by the Company are referred to as “Noncontrolling Common Units.” These Noncontrolling Common Units are held by other limited partners in the form of common units (“Other Common Units”) and long term incentive plan units (“LTIP units”) issued pursuant to the STAG Industrial, Inc. 2011 Equity Incentive Plan, as amended and restated (the “2011 Plan”). All significant intercompany balances and transactions have been eliminated in the consolidation of entities. The financial statements of the Company are presented on a consolidated basis for all periods presented. Restricted Cash The following table presents a reconciliation of cash and cash equivalents and restricted cash reported on the accompanying Consolidated Balance Sheets to amounts reported on the accompanying Consolidated Statements of Cash Flows. Reconciliation of cash and cash equivalents and restricted cash (in thousands) June 30, 2023 December 31, 2022 Cash and cash equivalents $ 13,511 $ 25,884 Restricted cash 1,023 905 Total cash and cash equivalents and restricted cash $ 14,534 $ 26,789 Uncertain Tax Positions As of June 30, 2023 and December 31, 2022, there were no liabilities for uncertain tax positions. |
Quarterly Financial Information | Interim Financial Information The accompanying interim financial statements have been presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-Q and Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim financial statements include all adjustments, consisting of normal recurring items, necessary for their fair statement in conformity with GAAP. Interim results are not necessarily indicative of results for a full year. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. |
Rental Property
Rental Property | 6 Months Ended |
Jun. 30, 2023 | |
Real Estate [Abstract] | |
Rental Property | Rental Property The following table summarizes the components of rental property, net as of June 30, 2023 and December 31, 2022. Rental Property (in thousands) June 30, 2023 December 31, 2022 Land $ 652,173 $ 647,098 Buildings, net of accumulated depreciation of $566,695 and $513,053, respectively 4,206,049 4,232,964 Tenant improvements, net of accumulated depreciation of $34,899 and $31,578, respectively 40,944 44,526 Building and land improvements, net of accumulated depreciation of $239,894 and $218,497, respectively 347,663 339,274 Construction in progress 89,624 89,981 Deferred leasing intangibles, net of accumulated amortization of $357,435 and $328,848, respectively 463,569 508,935 Total rental property, net $ 5,800,022 $ 5,862,778 Acquisitions The following table summarizes the Company’s acquisitions during the three and six months ended June 30, 2023. The Company accounted for all of its acquisitions as asset acquisitions. Market (1) Date Acquired Square Feet Number of Buildings Purchase Price (in thousands) Central New Jersey, NJ April 24, 2023 101,381 1 $ 26,660 Greensboro, NC May 5, 2023 133,622 1 14,004 Three and six months ended June 30, 2023 235,003 2 $ 40,664 (1) As defined by CBRE-EA industrial market geographies. If the building is located outside of a CBRE-EA defined market, the city and state is reflected. The following table summarizes the allocation of the total purchase price paid (on the closing dates) for the assets and liabilities acquired by the Company during the six months ended June 30, 2023 in connection with the acquisitions identified in the table above. Six months ended June 30, 2023 Acquired Assets and Liabilities Purchase Price (in thousands) Weighted Average Amortization Period (years) of Intangibles at Acquisition Land $ 7,933 N/A Buildings 27,279 N/A Tenant improvements 116 N/A Building and land improvements 2,097 N/A Deferred leasing intangibles - In-place leases 3,509 1.7 Deferred leasing intangibles - Above market leases 241 1.9 Tenant prepaid rent (511) N/A Total purchase price $ 40,664 Dispositions The following table summarizes the Company’s dispositions during the six months ended June 30, 2023. All of the dispositions were sold to third parties and were accounted for under the full accrual method. Sales of rental property, net (dollars in thousands) Six months ended June 30, 2023 Number of buildings 7 Building square feet (in millions) 1.2 Proceeds from sales of rental property, net $ 69,320 Net book value $ 31,660 Gain on the sales of rental property, net $ 37,660 The following table summarizes the results of operations for the three and six months ended June 30, 2023 and 2022 for the buildings sold during the six months ended June 30, 2023, which are included in the Company’s Consolidated Statements of Operations prior to the date of sale. Three months ended June 30, Six months ended June 30, Sales of rental property, net (dollars in thousands) 2023 2022 2023 2022 Sold buildings contribution to net income $ 256 $ 756 $ 501 $ 1,530 (1) Exclusive of gain on the sales of rental property, net. Deferred Leasing Intangibles The following table summarizes the deferred leasing intangibles, net on the accompanying Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022. June 30, 2023 December 31, 2022 Deferred Leasing Intangibles (in thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Above market leases $ 83,281 $ (35,657) $ 47,624 $ 86,172 $ (34,954) $ 51,218 Other intangible lease assets 737,723 (321,778) 415,945 751,611 (293,894) 457,717 Total deferred leasing intangible assets $ 821,004 $ (357,435) $ 463,569 $ 837,783 $ (328,848) $ 508,935 Below market leases $ 55,879 $ (27,467) $ 28,412 $ 57,020 $ (24,593) $ 32,427 Total deferred leasing intangible liabilities $ 55,879 $ (27,467) $ 28,412 $ 57,020 $ (24,593) $ 32,427 The following table summarizes the net increase to rental income and amortization expense for the amortization of deferred leasing intangibles during the three and six months ended June 30, 2023 and 2022. Three months ended June 30, Six months ended June 30, Deferred Leasing Intangibles Amortization (in thousands) 2023 2022 2023 2022 Net increase to rental income related to above and below market lease amortization $ 57 $ 22 $ 181 $ 101 Amortization expense related to other intangible lease assets $ 21,858 $ 24,705 $ 44,303 $ 48,782 |
Asset Acquisition | Acquisitions The following table summarizes the Company’s acquisitions during the three and six months ended June 30, 2023. The Company accounted for all of its acquisitions as asset acquisitions. Market (1) Date Acquired Square Feet Number of Buildings Purchase Price (in thousands) Central New Jersey, NJ April 24, 2023 101,381 1 $ 26,660 Greensboro, NC May 5, 2023 133,622 1 14,004 Three and six months ended June 30, 2023 235,003 2 $ 40,664 (1) As defined by CBRE-EA industrial market geographies. If the building is located outside of a CBRE-EA defined market, the city and state is reflected. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes the Company’s outstanding indebtedness, including borrowings under the Company’s unsecured credit facility, unsecured term loans, unsecured notes, and mortgage notes as of June 30, 2023 and December 31, 2022. Indebtedness (dollars in thousands) June 30, 2023 December 31, 2022 Interest Rate (1)(2) Maturity Date Prepayment Terms (3) Unsecured credit facility: Unsecured Credit Facility (4) $ 216,000 $ 175,000 Term SOFR + 0.855% October 23, 2026 i Total unsecured credit facility 216,000 175,000 Unsecured term loans: Unsecured Term Loan F 200,000 200,000 2.94 % January 12, 2025 i Unsecured Term Loan G 300,000 300,000 1.78 % February 5, 2026 i Unsecured Term Loan A 150,000 150,000 2.14 % March 15, 2027 i Unsecured Term Loan H 187,500 187,500 3.73 % January 25, 2028 i Unsecured Term Loan I 187,500 187,500 3.49 % January 25, 2028 i Total unsecured term loans 1,025,000 1,025,000 Total unamortized deferred financing fees and debt issuance costs (3,894) (4,560) Total carrying value unsecured term loans, net 1,021,106 1,020,440 Unsecured notes: Series F Unsecured Notes — 100,000 3.98 % January 5, 2023 ii Series A Unsecured Notes 50,000 50,000 4.98 % October 1, 2024 ii Series D Unsecured Notes 100,000 100,000 4.32 % February 20, 2025 ii Series G Unsecured Notes 75,000 75,000 4.10 % June 13, 2025 ii Series B Unsecured Notes 50,000 50,000 4.98 % July 1, 2026 ii Series C Unsecured Notes 80,000 80,000 4.42 % December 30, 2026 ii Series E Unsecured Notes 20,000 20,000 4.42 % February 20, 2027 ii Series H Unsecured Notes 100,000 100,000 4.27 % June 13, 2028 ii Series I Unsecured Notes 275,000 275,000 2.80 % September 29, 2031 ii Series K Unsecured Notes 400,000 400,000 4.12 % June 28, 2032 ii Series J Unsecured Notes 50,000 50,000 2.95 % September 28, 2033 ii Total unsecured notes 1,200,000 1,300,000 Total unamortized deferred financing fees and debt issuance costs (4,210) (4,558) Total carrying value unsecured notes, net 1,195,790 1,295,442 Mortgage notes (secured debt): Thrivent Financial for Lutherans 3,227 3,296 4.78 % December 15, 2023 iii United of Omaha Life Insurance Company 4,641 4,744 3.71 % October 1, 2039 ii Total mortgage notes 7,868 8,040 Net unamortized fair market value discount (139) (137) Total unamortized deferred financing fees and debt issuance costs (2) (5) Total carrying value mortgage notes, net 7,727 7,898 Total / weighted average interest rate (5) $ 2,440,623 $ 2,498,780 3.59 % (1) Interest rate as of June 30, 2023. At June 30, 2023, the one-month Term Secured Overnight Financing Rate (“Term SOFR”) was 5.14078%. The current interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums or discounts. The spread over the applicable rate for the Company’s unsecured credit facility and unsecured term loans is based on the Company’s debt rating and leverage ratio, as defined in the respective loan agreements. (2) The unsecured credit facility has a stated rate of one-month Term SOFR plus a 0.10% adjustment and a spread of 0.775%, less a sustainability-related interest rate adjustment of 0.02%. The unsecured term loans have a stated interest rate of one-month Term SOFR plus a 0.10% adjustment and a spread of 0.85%, less a sustainability-related interest rate adjustment of 0.02%. As of June 30, 2023, one-month Term SOFR for the Unsecured Term Loans A, F, G, H, and I was swapped to a fixed rate of 1.31%, 2.11%, 0.95%, 2.90%, and 2.66%, respectively (which includes the 0.10% adjustment). One-month Term SOFR for the Unsecured Term Loan H will be swapped to a fixed rate of 2.50% effective January 12, 2024. (3) Prepayment terms consist of (i) pre-payable with no penalty; (ii) pre-payable with penalty; (iii) pre-payable without penalty three months prior to the maturity date. (4) The capacity of the unsecured credit facility is $1.0 billion. Deferred financing fees and debt issuance costs, net of accumulated amortization related to the unsecured credit facility of approximately $4.2 million and $5.2 million are included in prepaid expenses and other assets on the accompanying Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022, respectively. The initial maturity date is October 24, 2025, or such later date which may be extended pursuant to two six-month extension options exercisable by the Company in its discretion upon advance written notice. Exercise of each six-month option is subject to the following conditions: (i) absence of a default immediately before the extension and immediately after giving effect to the extension; (ii) accuracy of representations and warranties as of the extension date (both immediately before and after the extension), as if made on the extension date; and (iii) payment of a fee. Neither extension option is subject to lender consent, assuming proper notice and satisfaction of the conditions. The Company is required to pay a facility fee on the aggregate commitment amount (currently $1.0 billion) at a rate per annum of 0.1% to 0.3%, depending on our debt rating, as defined in the credit agreement. The facility fee is due and payable quarterly. (5) The weighted average interest rate was calculated using the fixed interest rate swapped on the notional amount of $1,025.0 million of debt and is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums or discounts. The aggregate undrawn nominal commitment on the unsecured credit facility as of June 30, 2023 was approximately $780.7 million, including issued letters of credit. The Company’s actual borrowing capacity at any given point in time may be less or restricted to a maximum amount based on the Company’s debt covenant compliance. Total accrued interest for the Company’s indebtedness was approximately $12.3 million and $13.1 million as of June 30, 2023 and December 31, 2022, respectively, and is included in accounts payable, accrued expenses and other liabilities on the accompanying Consolidated Balance Sheets. The following table summarizes the costs included in interest expense related to the Company’s debt arrangements on the accompanying Consolidated Statement of Operations for the three and six months ended June 30, 2023 and 2022. Three months ended June 30, Six months ended June 30, Costs Included in Interest Expense (in thousands) 2023 2022 2023 2022 Amortization of deferred financing fees and debt issuance costs and fair market value premiums/discounts $ 972 $ 880 $ 1,948 $ 1,744 Facility, unused, and other fees $ 437 $ 345 $ 872 $ 686 Debt Activity On January 5, 2023, the Company redeemed in full at maturity the $100.0 million in aggregate principal amount of the Series F Unsecured Notes with a fixed interest rate of 3.98%. On January 19, 2023, the sustainability-related interest rate adjustment for the Unsecured Term Loan H and Unsecured Term Loan I went into effect in connection with the Company's 2022 public disclosure assessment score of “A” from the Global Real Estate Sustainability Benchmark (GRESB). The interest rate adjustment, a 0.02% interest rate reduction for each instrument, will end on June 29, 2024, in accordance with the respective loan agreements. Financial Covenant Considerations The Company was in compliance with all such applicable restrictions and financial and other covenants as of June 30, 2023 and December 31, 2022 related to its unsecured credit facility, unsecured term loans, unsecured notes, and mortgage notes. The real estate net book value of the properties that are collateral for the Company’s debt arrangements was approximately $14.9 million and $14.8 million at June 30, 2023 and December 31, 2022, respectively, and is limited to senior, property-level secured debt financing arrangements. Fair Value of Debt The following table summarizes the aggregate principal amount outstanding under the Company’s debt arrangements and the corresponding estimate of fair value as of June 30, 2023 and December 31, 2022. June 30, 2023 December 31, 2022 Indebtedness (in thousands) Principal Outstanding Fair Value Principal Outstanding Fair Value Unsecured credit facility $ 216,000 $ 216,000 $ 175,000 $ 175,000 Unsecured term loans 1,025,000 1,025,000 1,025,000 1,025,000 Unsecured notes 1,200,000 1,048,519 1,300,000 1,150,283 Mortgage notes 7,868 6,707 8,040 6,855 Total principal amount 2,448,868 $ 2,296,226 2,508,040 $ 2,357,138 Net unamortized fair market value discount (139) (137) Total unamortized deferred financing fees and debt issuance costs (8,106) (9,123) Total carrying value $ 2,440,623 $ 2,498,780 The applicable fair value guidance establishes a three tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Risk Management Objective of Using Derivatives The Company’s use of derivative instruments is limited to the utilization of interest rate swaps to manage interest rate risk exposure on existing and future liabilities and not for speculative purposes. The principal objective of such arrangements is to minimize the risks and related costs associated with the Company’s operating and financial structure. As of June 30, 2023, the Company had 21 interest rate swaps outstanding, all of which are used to hedge the variable cash flows associated with unsecured loans. All of the Company’s interest rate swaps convert the related loans’ Term SOFR components to effectively fixed interest rates, and the Company has concluded that each of the hedging relationships are highly effective. The following table summarizes the fair value of the interest rate swaps outstanding as of June 30, 2023 and December 31, 2022. Balance Sheet Line Item (in thousands) Notional Amount June 30, 2023 Fair Value June 30, 2023 Notional Amount December 31, 2022 Fair Value December 31, 2022 Interest rate swaps-Asset $ 1,200,000 $ 72,016 $ 1,650,000 $ 72,223 Interest rate swaps-Liability $ — $ — $ — $ — Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate swaps are to add stability to interest expense and to manage its exposure to interest rate movements. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income (loss) and subsequently reclassified to interest expense in the same periods during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives designated as qualifying cash flow hedges will be reclassified to interest expense as interest payments are made on the Company’s variable rate debt. The Company estimates that approximately $35.0 million will be reclassified from accumulated other comprehensive income as a decrease to interest expense over the next 12 months. The following table summarizes the effect of cash flow hedge accounting and the location of amounts related to Company’s derivatives in the consolidated financial statements for the three and six months ended June 30, 2023 and 2022. Three months ended June 30, Six months ended June 30, Effect of Cash Flow Hedge Accounting (in thousands) 2023 2022 2023 2022 Income recognized in accumulated other comprehensive income on interest rate swaps $ 24,168 $ 10,628 $ 15,626 $ 44,134 Income (loss) reclassified from accumulated other comprehensive income into income as interest expense $ 8,347 $ (1,881) $ 15,817 $ (5,612) Total interest expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ 22,860 $ 17,896 $ 45,472 $ 35,155 Credit-risk-related Contingent Features The Company has agreements with each of its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on the indebtedness. As of June 30, 2023, the Company had not breached the provisions of these agreements and had not posted any collateral related to these agreements. Fair Value of Interest Rate Swaps The Company’s valuation of the interest rate swaps is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs including interest rate curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company or its counterparties. However, as of June 30, 2023 and December 31, 2022, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. The following table summarizes the Company’s financial instruments that were recorded at fair value on a recurring basis as of June 30, 2023 and December 31, 2022. There were no financial instruments in a liability position at June 30, 2023 and December 31, 2022. Fair Value Measurements as of June 30, 2023 Using Balance Sheet Line Item (in thousands) Fair Value June 30, 2023 Level 1 Level 2 Level 3 Interest rate swaps-Asset $ 72,016 $ — $ 72,016 $ — Fair Value Measurements as of December 31, 2022 Using Balance Sheet Line Item (in thousands) Fair Value December 31, 2022 Level 1 Level 2 Level 3 Interest rate swaps-Asset $ 72,223 $ — $ 72,223 $ — |
Equity
Equity | 6 Months Ended |
Jun. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity Preferred Stock The Company is authorized to issue up to 20,000,000 shares of preferred stock, par value $0.01 per share. As of June 30, 2023 and December 31, 2022, there were no shares of preferred stock issued or outstanding. Common Stock The Company is authorized to issue up to 300,000,000 shares of common stock, par value $0.01 per share. The following table summarizes the terms of the Company’s at-the market (“ATM”) common stock offering program as of June 30, 2023. ATM Common Stock Offering Program Date Maximum Aggregate Offering Price (in thousands) Aggregate Available as of June 30, 2023 (in thousands) 2022 $750 million ATM February 17, 2022 $ 750,000 $ 679,463 The following table summarizes the shares sold through the sales agents under the ATM common stock offering program during the six months ended June 30, 2023 and year ended December 31, 2022. Six months ended June 30, 2023 ATM Common Stock Offering Program Shares Sold Weighted Average Price Per Share Net Proceeds (in thousands) 2022 $750 million ATM (1) 249,016 $ 35.55 $ 8,765 Total/weighted average 249,016 $ 35.55 $ 8,765 (1) Excludes shares sold on a forward basis under the ATM common stock offering program during the six months ended June 30, 2023, which are discussed below. Year ended December 31, 2022 ATM Common Stock Offering Program Shares Sold Weighted Average Price Per Share Net Proceeds (in thousands) 2019 $600 million ATM (1) 128,335 $ 45.03 $ 5,721 Total/weighted average 128,335 $ 45.03 $ 5,721 (1) This program ended before March 31, 2022. In addition, on May 5, 2023, the Company sold 725,698 shares on a forward basis under the ATM common stock offering program at a sale price of $35.0458 per share (an aggregate of approximately $25.4 million gross sale price), or $34.6953 per share net of commissions. The Company did not receive any proceeds from the sale of such shares on a forward basis. The Company expects to fully physically settle the applicable forward sale agreement on one or more dates prior to the scheduled maturity date of May 6, 2024; provided, however, the Company may elect to cash settle or net share settle such forward sale agreement at any time through the scheduled maturity date. On June 16, 2023, the Company also sold 992,295 shares on a forward basis under the ATM common stock offering program at a weighted average sale price of $36.5319 per share (an aggregate of approximately $36.3 million gross sale price), or $36.1820 per share net of commissions. The Company did not initially any proceeds from the sale of such shares on a forward basis. The Company expects to fully physically settle the applicable forward sale agreement on one or more dates prior to the scheduled maturity date of June 21, 2024; provided, however, the Company may elect to cash settle or net share settle the forward sale agreement at any time through the scheduled maturity date of June 21, 2024. Restricted Stock-Based Compensation The Company granted restricted shares of common stock under the 2011 Plan on January 11, 2023 to certain employees of the Company, which will vest over four years in equal installments on January 1 of each year beginning on January 1, 2024, subject to the recipient’s continued employment. The following table summarizes activity related to the Company’s unvested restricted shares of common stock during the six months ended June 30, 2023 and the year ended December 31, 2022. Unvested Restricted Shares of Common Stock Shares Weighted Average Grant Date Fair Value per Share Balance at December 31, 2021 185,715 $ 28.86 Granted 58,580 $ 44.19 Vested (1) (73,556) $ 28.03 Forfeited (14,036) $ 36.16 Balance at December 31, 2022 156,703 $ 34.32 Granted 55,954 $ 34.73 Vested (1) (68,625) $ 31.71 Forfeited — $ — Balance at June 30, 2023 144,032 $ 35.73 (1) The Company repurchased and retired 24,210 and 25,836 restricted shares of common stock that vested during the six months ended June 30, 2023 and the year ended December 31, 2022, respectively. The unrecognized compensation expense associated with the Company’s restricted shares of common stock at June 30, 2023 was approximately $3.9 million and is expected to be recognized over a weighted average period of approximately 2.6 years. The following table summarizes the fair value at vesting for the restricted shares of common stock that vested during the three and six months ended June 30, 2023 and 2022. Three months ended June 30, Six months ended June 30, Vested Restricted Shares of Common Stock 2023 2022 2023 2022 Vested restricted shares of common stock — — 68,625 73,556 Fair value of vested restricted shares of common stock (in thousands) $ — $ — $ 2,217 $ 3,528 |
Noncontrolling Interest
Noncontrolling Interest | 6 Months Ended |
Jun. 30, 2023 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | Noncontrolling Interest The following table summarizes the activity for noncontrolling interest in the Company during the six months ended June 30, 2023 and the year ended December 31, 2022. Noncontrolling Interest LTIP Units Other Common Units Total Noncontrolling Common Units Noncontrolling Interest Balance at December 31, 2021 1,949,124 1,570,640 3,519,764 1.9 % Granted/Issued 470,237 — 470,237 N/A Forfeited (6,791) — (6,791) N/A Conversions from LTIP units to Other Common Units (98,494) 98,494 — N/A Redemptions from Other Common Units to common stock — (98,494) (98,494) N/A Balance at December 31, 2022 2,314,076 1,570,640 3,884,716 2.1 % Granted/Issued 326,215 — 326,215 N/A Forfeited (9,119) — (9,119) N/A Conversions from LTIP units to Other Common Units (78,834) 78,834 — N/A Redemptions from Other Common Units to common stock — (78,834) (78,834) N/A Balance at June 30, 2023 2,552,338 1,570,640 4,122,978 2.2 % LTIP Units The Company granted LTIP units under the 2011 Plan on January 11, 2023 to non-employee, independent directors, which will vest on January 1, 2024, subject to the recipient’s continued service. The Company granted LTIP units under the 2011 Plan on January 11, 2023 to certain executive officers and senior employees of the Company, which will vest in equal installments on a quarterly basis over four years, with the first vesting date having been March 31, 2023, subject to the recipient’s continued employment. Refer to Note 8 for a discussion of the LTIP units granted on January 11, 2023 pursuant to the 2020 performance units. On March 13, 2023, the Company executed an employment agreement with Steven T. Kimball to serve as the Company's Executive Vice President of Real Estate Operations, effective March 31, 2023. On March 31, 2023, pursuant to the 2011 Plan, the Company awarded Mr. Kimball an initial LTIP unit grant equal in value to approximately $0.6 million, which equated to 19,345 LTIP units, which will vest in equal installments on a quarterly basis over four years, with the first vesting date having been March 31, 2023, subject to Mr. Kimball’s continued employment. The fair value of the LTIP units as of the grant date was determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation. The fair value of the LTIP units are based on Level 3 inputs and non-recurring fair value measurements. The following table summarizes the assumptions used in valuing such LTIP units granted during the six months ended June 30, 2023 (excluding the LTIP units granted pursuant to the 2020 performance units discussed in Note 8). LTIP Units Assumptions Grant date March 31, 2023 January 11, 2023 Expected term (years) 10 10 Expected stock price volatility 37.0 % 37.0 % Expected dividend yield 4.0 % 4.0 % Risk-free interest rate 3.81 % 3.90 % Fair value of LTIP units at issuance (in thousands) $ 628 $ 4,635 LTIP units at issuance 19,345 139,026 Fair value unit price per LTIP unit at issuance $ 32.47 $ 33.34 The expected stock price volatility is based on a mix of the historical and implied volatilities of the Company and certain peer group companies. The expected dividend yield is based on the Company’s average historical dividend yield and the dividend yield as of the valuation date for each award. The risk-free interest rate is based on U.S. Treasury note yields matching a three-year time period. The following table summarizes activity related to the Company’s unvested LTIP units during the six months ended June 30, 2023 and the year ended December 31, 2022. Unvested LTIP Units LTIP Units Weighted Average Grant Date Fair Value per Unit Balance at December 31, 2021 190,108 $ 27.84 Granted 470,237 $ 42.07 Vested (513,438) $ 38.67 Forfeited (6,791) $ 34.02 Balance at December 31, 2022 140,116 $ 35.60 Granted 326,215 $ 33.29 Vested (235,702) $ 34.01 Forfeited (9,119) $ 34.11 Balance at June 30, 2023 221,510 $ 33.96 The unrecognized compensation expense associated with the Company’s LTIP units at June 30, 2023 was approximately $4.8 million and is expected to be recognized over a weighted average period of approximately 2.6 years. The following table summarizes the fair value at vesting for the LTIP units that vested during the three and six months ended June 30, 2023 and 2022. Three months ended June 30, Six months ended June 30, Vested LTIP units 2023 2022 2023 2022 Vested LTIP units 23,472 30,327 235,702 444,675 Fair value of vested LTIP units (in thousands) $ 839 $ 951 $ 7,862 $ 19,544 |
Equity Incentive Plan
Equity Incentive Plan | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Incentive Plan | Equity Incentive Plan On January 11, 2023, the compensation committee of the board of directors approved and the Company granted performance units under the 2011 Plan to the executive officers and certain key employees of the Company. The terms of the performance units granted on January 11, 2023 are substantially the same as the terms of the performance units granted in January 2022, 2021, and 2020, except that the measuring period commenced on January 1, 2023 and ends on December 31, 2025, and the size-based peer group was eliminated. The target amount of the performance units granted on January 11, 2023 is nominally allocated as follows: (i) 50% to the Company’s total stockholder return (“TSR”) compared to the TSR of an industry peer group; and (ii) 50% to the Company’s TSR compared to the TSR of the companies in the MSCI US REIT Index. On March 31, 2023, in connection with the execution of the employment agreement discussed in Note 7, the Company granted Mr. Kimball performance units under the 2011 Plan with a target grant date fair value equal to approximately $0.6 million. The terms and measuring period of the performance units granted to Mr. Kimball are the same as the performance units granted on January 11, 2023. On April 25, 2023, the Company’s stockholders approved an amendment (the “Amendment”) to the 2011 Plan which increased the total number of shares of common stock of the Company authorized and reserved for issuance under the 2011 Plan by 3,500,000 shares to an aggregate of 10,142,461 shares of common stock, subject to certain adjustments as described in the 2011 Plan. The Amendment also extended the expiration date of the 2011 Plan from April 30, 2028 to April 24, 2033. The fair value of the performance units as of the grant date was determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation. The fair value of the performance units is based on Level 3 inputs and non-recurring fair value measurements. The performance unit equity compensation expense is recognized ratably from the grant date into earnings over the vesting period. The following table summarizes the assumptions used in valuing the performance units granted during the six months ended June 30, 2023. Performance Units Assumptions Grant date March 31, 2023 January 11, 2023 Expected stock price volatility 25.4 % 37.4 % Expected dividend yield 4.0 % 4.0 % Risk-free interest rate 3.8725 % 3.9060 % Fair value of performance units grant (in thousands) $ 609 $ 4,517 The expected stock price volatility is based on a mix of the historical and implied volatilities of the Company and certain peer group companies. The expected dividend yield is based on the Company’s average historical dividend yield and the dividend yield as of the valuation date for each award. The risk-free interest rate is based on U.S. Treasury note yields matching the time period of the grant date to the end of the measuring period. On December 31, 2022, the measuring period for the 2020 performance units concluded, and it was determined that the Company’s TSR exceeded the threshold percentage and return hurdle. The following table summarizes the issuances of LTIP units and shares of common stock approved by the compensation committee of the board of directors and issued upon the settlement of the 2020 performance units at the conclusion of the applicable measuring period during the six months ended June 30, 2023. Settlement of Performance Units in LTIP Units or Shares of Common Stock 2020 Performance Units Measuring period conclusion date December 31, 2022 Issuance date January 11, 2023 Vested LTIP units 167,844 Vested shares of common stock 40,660 Shares of common stock repurchased and retired 875 The unrecognized compensation expense associated with the Company’s performance units at June 30, 2023 was approximately $7.5 million and is expected to be recognized over a weighted average period of approximately 2.0 years. Non-cash Compensation Expense The following table summarizes the amount recorded in general and administrative expenses in the accompanying Consolidated Statements of Operations for the amortization of restricted shares of common stock, LTIP units, performance units, and the Company’s director compensation for the three and six months ended June 30, 2023 and 2022. Three months ended June 30, Six months ended June 30, Non-Cash Compensation Expense (in thousands) 2023 2022 2023 2022 Restricted shares of common stock $ 516 $ 565 $ 1,025 $ 1,113 LTIP units 1,414 1,367 2,742 2,651 Performance units 1,235 1,364 2,354 2,660 Director compensation (1) 128 125 264 246 Total non-cash compensation expense $ 3,293 $ 3,421 $ 6,385 $ 6,670 (1) All of the Company’s independent directors elected to receive shares of common stock in lieu of cash for their service during the three and six months ended June 30, 2023 and 2022. The number of shares of common stock granted was calculated based on the trailing 10 day average common stock price on the third business day preceding the grant date. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases Lessor Leases The Company has operating leases in which it is the lessor for its rental property. Certain leases contain variable lease payments based upon changes in the Consumer Price Index (“CPI”). Billings for real estate taxes and other expenses are also considered to be variable lease payments. Certain leases contain options to renew or terminate the lease, and options for the lessee to purchase the rental property, all of which are predominately at the sole discretion of the lessee. The following table summarizes the components of rental income included in the accompanying Consolidated Statements of Operations for the three and six months ended June 30, 2023 and 2022. Three months ended June 30, Six months ended June 30, Rental Income (in thousands) 2023 2022 2023 2022 Fixed lease payments $ 133,164 $ 124,593 $ 264,250 $ 244,833 Variable lease payments 33,723 32,714 70,669 66,492 Straight-line rental income 4,495 3,728 9,607 8,232 Net increase to rental income related to above and below market lease amortization 57 22 181 101 Total rental income $ 171,439 $ 161,057 $ 344,707 $ 319,658 As of June 30, 2023 and December 31, 2022, the Company had accrued rental income of approximately $98.8 million and $91.2 million, respectively, included in tenant accounts receivable on the accompanying Consolidated Balance Sheets. As of June 30, 2023 and December 31, 2022, the Company’s total liability associated with lease security deposits was approximately $19.5 million and $19.1 million, respectively, which is included in tenant prepaid rent and security deposits on the accompanying Consolidated Balance Sheets. The following table summarizes the maturity of fixed lease payments under the Company’s leases as of June 30, 2023. Year Maturity of Fixed Lease Payments (in thousands) Remainder of 2023 $ 271,277 2024 $ 521,593 2025 $ 463,939 2026 $ 386,524 2027 $ 305,959 Thereafter $ 891,179 Lessee Leases The Company has operating leases in which it is the lessee for its ground leases and corporate office leases. These leases have remaining lease terms of approximately 2.8 years to 47.2 years. Certain ground leases contain options to extend the leases for ten years to 20 years, all of which are reasonably certain to be exercised, and are included in the computation of the Company’s right-of-use assets and operating lease liabilities. The following table summarizes supplemental information related to operating lease right-of-use assets and operating lease liabilities recognized in the Company’s Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022. Operating Lease Term and Discount Rate June 30, 2023 December 31, 2022 Weighted average remaining lease term (years) 31.3 31.2 Weighted average discount rate 6.8 % 6.7 % The following table summarizes the operating lease cost included in the Company’s Consolidated Statements of Operations for the three and six months ended June 30, 2023 and 2022. Three months ended June 30, Six months ended June 30, Operating Lease Cost (in thousands) 2023 2022 2023 2022 Operating lease cost included in property expense attributable to ground leases $ 618 $ 605 $ 1,236 $ 1,138 Operating lease cost included in general and administrative expense attributable to corporate office leases 434 436 871 873 Total operating lease cost $ 1,052 $ 1,041 $ 2,107 $ 2,011 The following table summarizes supplemental cash flow information related to operating leases in the Company’s Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022. Six months ended June 30, Operating Leases (in thousands) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities (operating cash flows) $ 1,933 $ 1,850 Right-of-use assets obtained in exchange for new lease liabilities $ 141 $ — The following table summarizes the maturity of operating lease liabilities under the Company’s ground leases and corporate office leases as of June 30, 2023. Year Maturity of Operating Lease Liabilities (1) (in thousands) Remainder of 2023 $ 1,957 2024 3,975 2025 4,022 2026 3,014 2027 2,023 Thereafter 81,962 Total lease payments 96,953 Less: Imputed interest (62,524) Present value of operating lease liabilities $ 34,429 (1) Operating lease liabilities do not include estimates of CPI rent changes required by certain ground lease agreements. Therefore, actual payments may differ from those presented. |
Leases | Leases Lessor Leases The Company has operating leases in which it is the lessor for its rental property. Certain leases contain variable lease payments based upon changes in the Consumer Price Index (“CPI”). Billings for real estate taxes and other expenses are also considered to be variable lease payments. Certain leases contain options to renew or terminate the lease, and options for the lessee to purchase the rental property, all of which are predominately at the sole discretion of the lessee. The following table summarizes the components of rental income included in the accompanying Consolidated Statements of Operations for the three and six months ended June 30, 2023 and 2022. Three months ended June 30, Six months ended June 30, Rental Income (in thousands) 2023 2022 2023 2022 Fixed lease payments $ 133,164 $ 124,593 $ 264,250 $ 244,833 Variable lease payments 33,723 32,714 70,669 66,492 Straight-line rental income 4,495 3,728 9,607 8,232 Net increase to rental income related to above and below market lease amortization 57 22 181 101 Total rental income $ 171,439 $ 161,057 $ 344,707 $ 319,658 As of June 30, 2023 and December 31, 2022, the Company had accrued rental income of approximately $98.8 million and $91.2 million, respectively, included in tenant accounts receivable on the accompanying Consolidated Balance Sheets. As of June 30, 2023 and December 31, 2022, the Company’s total liability associated with lease security deposits was approximately $19.5 million and $19.1 million, respectively, which is included in tenant prepaid rent and security deposits on the accompanying Consolidated Balance Sheets. The following table summarizes the maturity of fixed lease payments under the Company’s leases as of June 30, 2023. Year Maturity of Fixed Lease Payments (in thousands) Remainder of 2023 $ 271,277 2024 $ 521,593 2025 $ 463,939 2026 $ 386,524 2027 $ 305,959 Thereafter $ 891,179 Lessee Leases The Company has operating leases in which it is the lessee for its ground leases and corporate office leases. These leases have remaining lease terms of approximately 2.8 years to 47.2 years. Certain ground leases contain options to extend the leases for ten years to 20 years, all of which are reasonably certain to be exercised, and are included in the computation of the Company’s right-of-use assets and operating lease liabilities. The following table summarizes supplemental information related to operating lease right-of-use assets and operating lease liabilities recognized in the Company’s Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022. Operating Lease Term and Discount Rate June 30, 2023 December 31, 2022 Weighted average remaining lease term (years) 31.3 31.2 Weighted average discount rate 6.8 % 6.7 % The following table summarizes the operating lease cost included in the Company’s Consolidated Statements of Operations for the three and six months ended June 30, 2023 and 2022. Three months ended June 30, Six months ended June 30, Operating Lease Cost (in thousands) 2023 2022 2023 2022 Operating lease cost included in property expense attributable to ground leases $ 618 $ 605 $ 1,236 $ 1,138 Operating lease cost included in general and administrative expense attributable to corporate office leases 434 436 871 873 Total operating lease cost $ 1,052 $ 1,041 $ 2,107 $ 2,011 The following table summarizes supplemental cash flow information related to operating leases in the Company’s Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022. Six months ended June 30, Operating Leases (in thousands) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities (operating cash flows) $ 1,933 $ 1,850 Right-of-use assets obtained in exchange for new lease liabilities $ 141 $ — The following table summarizes the maturity of operating lease liabilities under the Company’s ground leases and corporate office leases as of June 30, 2023. Year Maturity of Operating Lease Liabilities (1) (in thousands) Remainder of 2023 $ 1,957 2024 3,975 2025 4,022 2026 3,014 2027 2,023 Thereafter 81,962 Total lease payments 96,953 Less: Imputed interest (62,524) Present value of operating lease liabilities $ 34,429 (1) Operating lease liabilities do not include estimates of CPI rent changes required by certain ground lease agreements. Therefore, actual payments may differ from those presented. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per ShareDuring the three and six months ended June 30, 2023 and 2022, there were 144,032, 162,891, 141,699 and 164,068 of unvested restricted shares of common stock (on a weighted average basis), respectively, that were considered participating securities for the purposes of computing earnings per share. The following table reconciles the numerators and denominators in the computation of basic and diluted earnings per share of common stock for the three and six months ended June 30, 2023 and 2022. Three months ended June 30, Six months ended June 30, Earnings Per Share (in thousands, except per share data) 2023 2022 2023 2022 Numerator Net income attributable to common stockholders $ 51,553 $ 32,317 $ 100,966 $ 85,081 Denominator Weighted average common shares outstanding — basic 179,413 179,049 179,305 178,442 Effect of dilutive securities (1) Share-based compensation 318 95 210 144 Shares issuable under forward sales agreements 7 — 3 — Weighted average common shares outstanding — diluted 179,738 179,144 179,518 178,586 Net income per share — basic and diluted Net income per share attributable to common stockholders — basic $ 0.29 $ 0.18 $ 0.56 $ 0.48 Net income per share attributable to common stockholders — diluted $ 0.29 $ 0.18 $ 0.56 $ 0.48 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesThe Company is subject to various legal proceedings and claims that arise in the ordinary course of business. These matters are generally covered by insurance subject to deductible requirements. Management believes that the ultimate settlement of these actions will not have a material adverse effect on the Company’s financial position, results of operations, or cash flows.The Company has letters of credit of approximately $3.3 million as of June 30, 2023 related to construction projects and certain other agreements. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsThere were no recognized or non-recognized subsequent events. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ 51,606 | $ 32,376 | $ 101,072 | $ 85,202 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Quarterly Financial Information | Interim Financial Information The accompanying interim financial statements have been presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-Q and Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim financial statements include all adjustments, consisting of normal recurring items, necessary for their fair statement in conformity with GAAP. Interim results are not necessarily indicative of results for a full year. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. |
Basis of Presentation | Basis of Presentation The Company’s consolidated financial statements include the accounts of the Company, the Operating Partnership, and their consolidated subsidiaries. Interests in the Operating Partnership not owned by the Company are referred to as “Noncontrolling Common Units.” These Noncontrolling Common Units are held by other limited partners in the form of common units (“Other Common Units”) and long term incentive plan units (“LTIP units”) issued pursuant to the STAG Industrial, Inc. 2011 Equity Incentive Plan, as amended and restated (the “2011 Plan”). All significant intercompany balances and transactions have been eliminated in the consolidation of entities. The financial statements of the Company are presented on a consolidated basis for all periods presented. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Cash, Cash Equivalents and Restricted Cash (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following table presents a reconciliation of cash and cash equivalents and restricted cash reported on the accompanying Consolidated Balance Sheets to amounts reported on the accompanying Consolidated Statements of Cash Flows. Reconciliation of cash and cash equivalents and restricted cash (in thousands) June 30, 2023 December 31, 2022 Cash and cash equivalents $ 13,511 $ 25,884 Restricted cash 1,023 905 Total cash and cash equivalents and restricted cash $ 14,534 $ 26,789 |
Rental Property (Tables)
Rental Property (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Real Estate [Abstract] | |
Schedule of Real Estate Properties | The following table summarizes the components of rental property, net as of June 30, 2023 and December 31, 2022. Rental Property (in thousands) June 30, 2023 December 31, 2022 Land $ 652,173 $ 647,098 Buildings, net of accumulated depreciation of $566,695 and $513,053, respectively 4,206,049 4,232,964 Tenant improvements, net of accumulated depreciation of $34,899 and $31,578, respectively 40,944 44,526 Building and land improvements, net of accumulated depreciation of $239,894 and $218,497, respectively 347,663 339,274 Construction in progress 89,624 89,981 Deferred leasing intangibles, net of accumulated amortization of $357,435 and $328,848, respectively 463,569 508,935 Total rental property, net $ 5,800,022 $ 5,862,778 |
Schedule of real estate properties acquired | The following table summarizes the Company’s acquisitions during the three and six months ended June 30, 2023. The Company accounted for all of its acquisitions as asset acquisitions. Market (1) Date Acquired Square Feet Number of Buildings Purchase Price (in thousands) Central New Jersey, NJ April 24, 2023 101,381 1 $ 26,660 Greensboro, NC May 5, 2023 133,622 1 14,004 Three and six months ended June 30, 2023 235,003 2 $ 40,664 (1) As defined by CBRE-EA industrial market geographies. If the building is located outside of a CBRE-EA defined market, the city and state is reflected. |
Summary of allocation of the consideration paid for the acquired assets and liabilities in connection with the acquisition of buildings at the date of acquisition | The following table summarizes the allocation of the total purchase price paid (on the closing dates) for the assets and liabilities acquired by the Company during the six months ended June 30, 2023 in connection with the acquisitions identified in the table above. Six months ended June 30, 2023 Acquired Assets and Liabilities Purchase Price (in thousands) Weighted Average Amortization Period (years) of Intangibles at Acquisition Land $ 7,933 N/A Buildings 27,279 N/A Tenant improvements 116 N/A Building and land improvements 2,097 N/A Deferred leasing intangibles - In-place leases 3,509 1.7 Deferred leasing intangibles - Above market leases 241 1.9 Tenant prepaid rent (511) N/A Total purchase price $ 40,664 |
Disposal Groups, Including Discontinued Operations | The following table summarizes the Company’s dispositions during the six months ended June 30, 2023. All of the dispositions were sold to third parties and were accounted for under the full accrual method. Sales of rental property, net (dollars in thousands) Six months ended June 30, 2023 Number of buildings 7 Building square feet (in millions) 1.2 Proceeds from sales of rental property, net $ 69,320 Net book value $ 31,660 Gain on the sales of rental property, net $ 37,660 The following table summarizes the results of operations for the three and six months ended June 30, 2023 and 2022 for the buildings sold during the six months ended June 30, 2023, which are included in the Company’s Consolidated Statements of Operations prior to the date of sale. Three months ended June 30, Six months ended June 30, Sales of rental property, net (dollars in thousands) 2023 2022 2023 2022 Sold buildings contribution to net income $ 256 $ 756 $ 501 $ 1,530 (1) Exclusive of gain on the sales of rental property, net. |
Schedule of Finite-Lived Intangible Assets and Below Market Leases | The following table summarizes the deferred leasing intangibles, net on the accompanying Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022. June 30, 2023 December 31, 2022 Deferred Leasing Intangibles (in thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Above market leases $ 83,281 $ (35,657) $ 47,624 $ 86,172 $ (34,954) $ 51,218 Other intangible lease assets 737,723 (321,778) 415,945 751,611 (293,894) 457,717 Total deferred leasing intangible assets $ 821,004 $ (357,435) $ 463,569 $ 837,783 $ (328,848) $ 508,935 Below market leases $ 55,879 $ (27,467) $ 28,412 $ 57,020 $ (24,593) $ 32,427 Total deferred leasing intangible liabilities $ 55,879 $ (27,467) $ 28,412 $ 57,020 $ (24,593) $ 32,427 The following table summarizes the net increase to rental income and amortization expense for the amortization of deferred leasing intangibles during the three and six months ended June 30, 2023 and 2022. Three months ended June 30, Six months ended June 30, Deferred Leasing Intangibles Amortization (in thousands) 2023 2022 2023 2022 Net increase to rental income related to above and below market lease amortization $ 57 $ 22 $ 181 $ 101 Amortization expense related to other intangible lease assets $ 21,858 $ 24,705 $ 44,303 $ 48,782 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Summary of the mortgage notes payable, unsecured term loans and credit facility | The following table summarizes the Company’s outstanding indebtedness, including borrowings under the Company’s unsecured credit facility, unsecured term loans, unsecured notes, and mortgage notes as of June 30, 2023 and December 31, 2022. Indebtedness (dollars in thousands) June 30, 2023 December 31, 2022 Interest Rate (1)(2) Maturity Date Prepayment Terms (3) Unsecured credit facility: Unsecured Credit Facility (4) $ 216,000 $ 175,000 Term SOFR + 0.855% October 23, 2026 i Total unsecured credit facility 216,000 175,000 Unsecured term loans: Unsecured Term Loan F 200,000 200,000 2.94 % January 12, 2025 i Unsecured Term Loan G 300,000 300,000 1.78 % February 5, 2026 i Unsecured Term Loan A 150,000 150,000 2.14 % March 15, 2027 i Unsecured Term Loan H 187,500 187,500 3.73 % January 25, 2028 i Unsecured Term Loan I 187,500 187,500 3.49 % January 25, 2028 i Total unsecured term loans 1,025,000 1,025,000 Total unamortized deferred financing fees and debt issuance costs (3,894) (4,560) Total carrying value unsecured term loans, net 1,021,106 1,020,440 Unsecured notes: Series F Unsecured Notes — 100,000 3.98 % January 5, 2023 ii Series A Unsecured Notes 50,000 50,000 4.98 % October 1, 2024 ii Series D Unsecured Notes 100,000 100,000 4.32 % February 20, 2025 ii Series G Unsecured Notes 75,000 75,000 4.10 % June 13, 2025 ii Series B Unsecured Notes 50,000 50,000 4.98 % July 1, 2026 ii Series C Unsecured Notes 80,000 80,000 4.42 % December 30, 2026 ii Series E Unsecured Notes 20,000 20,000 4.42 % February 20, 2027 ii Series H Unsecured Notes 100,000 100,000 4.27 % June 13, 2028 ii Series I Unsecured Notes 275,000 275,000 2.80 % September 29, 2031 ii Series K Unsecured Notes 400,000 400,000 4.12 % June 28, 2032 ii Series J Unsecured Notes 50,000 50,000 2.95 % September 28, 2033 ii Total unsecured notes 1,200,000 1,300,000 Total unamortized deferred financing fees and debt issuance costs (4,210) (4,558) Total carrying value unsecured notes, net 1,195,790 1,295,442 Mortgage notes (secured debt): Thrivent Financial for Lutherans 3,227 3,296 4.78 % December 15, 2023 iii United of Omaha Life Insurance Company 4,641 4,744 3.71 % October 1, 2039 ii Total mortgage notes 7,868 8,040 Net unamortized fair market value discount (139) (137) Total unamortized deferred financing fees and debt issuance costs (2) (5) Total carrying value mortgage notes, net 7,727 7,898 Total / weighted average interest rate (5) $ 2,440,623 $ 2,498,780 3.59 % (1) Interest rate as of June 30, 2023. At June 30, 2023, the one-month Term Secured Overnight Financing Rate (“Term SOFR”) was 5.14078%. The current interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums or discounts. The spread over the applicable rate for the Company’s unsecured credit facility and unsecured term loans is based on the Company’s debt rating and leverage ratio, as defined in the respective loan agreements. (2) The unsecured credit facility has a stated rate of one-month Term SOFR plus a 0.10% adjustment and a spread of 0.775%, less a sustainability-related interest rate adjustment of 0.02%. The unsecured term loans have a stated interest rate of one-month Term SOFR plus a 0.10% adjustment and a spread of 0.85%, less a sustainability-related interest rate adjustment of 0.02%. As of June 30, 2023, one-month Term SOFR for the Unsecured Term Loans A, F, G, H, and I was swapped to a fixed rate of 1.31%, 2.11%, 0.95%, 2.90%, and 2.66%, respectively (which includes the 0.10% adjustment). One-month Term SOFR for the Unsecured Term Loan H will be swapped to a fixed rate of 2.50% effective January 12, 2024. (3) Prepayment terms consist of (i) pre-payable with no penalty; (ii) pre-payable with penalty; (iii) pre-payable without penalty three months prior to the maturity date. (4) The capacity of the unsecured credit facility is $1.0 billion. Deferred financing fees and debt issuance costs, net of accumulated amortization related to the unsecured credit facility of approximately $4.2 million and $5.2 million are included in prepaid expenses and other assets on the accompanying Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022, respectively. The initial maturity date is October 24, 2025, or such later date which may be extended pursuant to two six-month extension options exercisable by the Company in its discretion upon advance written notice. Exercise of each six-month option is subject to the following conditions: (i) absence of a default immediately before the extension and immediately after giving effect to the extension; (ii) accuracy of representations and warranties as of the extension date (both immediately before and after the extension), as if made on the extension date; and (iii) payment of a fee. Neither extension option is subject to lender consent, assuming proper notice and satisfaction of the conditions. The Company is required to pay a facility fee on the aggregate commitment amount (currently $1.0 billion) at a rate per annum of 0.1% to 0.3%, depending on our debt rating, as defined in the credit agreement. The facility fee is due and payable quarterly. (5) The weighted average interest rate was calculated using the fixed interest rate swapped on the notional amount of $1,025.0 million of debt and is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums or discounts. |
Interest Income and Interest Expense Disclosure [Table Text Block] | The following table summarizes the costs included in interest expense related to the Company’s debt arrangements on the accompanying Consolidated Statement of Operations for the three and six months ended June 30, 2023 and 2022. Three months ended June 30, Six months ended June 30, Costs Included in Interest Expense (in thousands) 2023 2022 2023 2022 Amortization of deferred financing fees and debt issuance costs and fair market value premiums/discounts $ 972 $ 880 $ 1,948 $ 1,744 Facility, unused, and other fees $ 437 $ 345 $ 872 $ 686 |
Schedule of aggregate carrying value of the debt and the corresponding estimate of fair value | The following table summarizes the aggregate principal amount outstanding under the Company’s debt arrangements and the corresponding estimate of fair value as of June 30, 2023 and December 31, 2022. June 30, 2023 December 31, 2022 Indebtedness (in thousands) Principal Outstanding Fair Value Principal Outstanding Fair Value Unsecured credit facility $ 216,000 $ 216,000 $ 175,000 $ 175,000 Unsecured term loans 1,025,000 1,025,000 1,025,000 1,025,000 Unsecured notes 1,200,000 1,048,519 1,300,000 1,150,283 Mortgage notes 7,868 6,707 8,040 6,855 Total principal amount 2,448,868 $ 2,296,226 2,508,040 $ 2,357,138 Net unamortized fair market value discount (139) (137) Total unamortized deferred financing fees and debt issuance costs (8,106) (9,123) Total carrying value $ 2,440,623 $ 2,498,780 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of interest rate swaps | The following table summarizes the fair value of the interest rate swaps outstanding as of June 30, 2023 and December 31, 2022. Balance Sheet Line Item (in thousands) Notional Amount June 30, 2023 Fair Value June 30, 2023 Notional Amount December 31, 2022 Fair Value December 31, 2022 Interest rate swaps-Asset $ 1,200,000 $ 72,016 $ 1,650,000 $ 72,223 Interest rate swaps-Liability $ — $ — $ — $ — |
Schedule of the location in the financial statements of the gain or loss recognized on interest rate swaps | The following table summarizes the effect of cash flow hedge accounting and the location of amounts related to Company’s derivatives in the consolidated financial statements for the three and six months ended June 30, 2023 and 2022. Three months ended June 30, Six months ended June 30, Effect of Cash Flow Hedge Accounting (in thousands) 2023 2022 2023 2022 Income recognized in accumulated other comprehensive income on interest rate swaps $ 24,168 $ 10,628 $ 15,626 $ 44,134 Income (loss) reclassified from accumulated other comprehensive income into income as interest expense $ 8,347 $ (1,881) $ 15,817 $ (5,612) Total interest expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ 22,860 $ 17,896 $ 45,472 $ 35,155 |
Schedule of financial instruments accounted for at fair value on a recurring basis | The following table summarizes the Company’s financial instruments that were recorded at fair value on a recurring basis as of June 30, 2023 and December 31, 2022. There were no financial instruments in a liability position at June 30, 2023 and December 31, 2022. Fair Value Measurements as of June 30, 2023 Using Balance Sheet Line Item (in thousands) Fair Value June 30, 2023 Level 1 Level 2 Level 3 Interest rate swaps-Asset $ 72,016 $ — $ 72,016 $ — Fair Value Measurements as of December 31, 2022 Using Balance Sheet Line Item (in thousands) Fair Value December 31, 2022 Level 1 Level 2 Level 3 Interest rate swaps-Asset $ 72,223 $ — $ 72,223 $ — |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of stock sale activity | The following table summarizes the terms of the Company’s at-the market (“ATM”) common stock offering program as of June 30, 2023. ATM Common Stock Offering Program Date Maximum Aggregate Offering Price (in thousands) Aggregate Available as of June 30, 2023 (in thousands) 2022 $750 million ATM February 17, 2022 $ 750,000 $ 679,463 The following table summarizes the shares sold through the sales agents under the ATM common stock offering program during the six months ended June 30, 2023 and year ended December 31, 2022. Six months ended June 30, 2023 ATM Common Stock Offering Program Shares Sold Weighted Average Price Per Share Net Proceeds (in thousands) 2022 $750 million ATM (1) 249,016 $ 35.55 $ 8,765 Total/weighted average 249,016 $ 35.55 $ 8,765 (1) Excludes shares sold on a forward basis under the ATM common stock offering program during the six months ended June 30, 2023, which are discussed below. Year ended December 31, 2022 ATM Common Stock Offering Program Shares Sold Weighted Average Price Per Share Net Proceeds (in thousands) 2019 $600 million ATM (1) 128,335 $ 45.03 $ 5,721 Total/weighted average 128,335 $ 45.03 $ 5,721 (1) This program ended before March 31, 2022. In addition, on May 5, 2023, the Company sold 725,698 shares on a forward basis under the ATM common stock offering program at a sale price of $35.0458 per share (an aggregate of approximately $25.4 million gross sale price), or $34.6953 per share net of commissions. The Company did not receive any proceeds from the sale of such shares on a forward basis. The Company expects to fully physically settle the applicable forward sale agreement on one or more dates prior to the scheduled maturity date of May 6, 2024; provided, however, the Company may elect to cash settle or net share settle such forward sale agreement at any time through the scheduled maturity date. On June 16, 2023, the Company also sold 992,295 shares on a forward basis under the ATM common stock offering program at a weighted average sale price of $36.5319 per share (an aggregate of approximately $36.3 million gross sale price), or $36.1820 per share net of commissions. The Company did not initially any proceeds from the sale of such shares on a forward basis. The Company expects to fully physically settle the applicable forward sale agreement on one or more dates prior to the scheduled maturity date of June 21, 2024; provided, however, the Company may elect to cash settle or net share settle the forward sale agreement at any time through the scheduled maturity date of June 21, 2024. |
Schedule of activity related to unvested restricted stock awards | The following table summarizes activity related to the Company’s unvested restricted shares of common stock during the six months ended June 30, 2023 and the year ended December 31, 2022. Unvested Restricted Shares of Common Stock Shares Weighted Average Grant Date Fair Value per Share Balance at December 31, 2021 185,715 $ 28.86 Granted 58,580 $ 44.19 Vested (1) (73,556) $ 28.03 Forfeited (14,036) $ 36.16 Balance at December 31, 2022 156,703 $ 34.32 Granted 55,954 $ 34.73 Vested (1) (68,625) $ 31.71 Forfeited — $ — Balance at June 30, 2023 144,032 $ 35.73 (1) The Company repurchased and retired 24,210 and 25,836 restricted shares of common stock that vested during the six months ended June 30, 2023 and the year ended December 31, 2022, respectively. |
Schedule of vested restricted shares of common stock activity | The following table summarizes the fair value at vesting for the restricted shares of common stock that vested during the three and six months ended June 30, 2023 and 2022. Three months ended June 30, Six months ended June 30, Vested Restricted Shares of Common Stock 2023 2022 2023 2022 Vested restricted shares of common stock — — 68,625 73,556 Fair value of vested restricted shares of common stock (in thousands) $ — $ — $ 2,217 $ 3,528 |
Noncontrolling Interest (Tables
Noncontrolling Interest (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling interest activity | The following table summarizes the activity for noncontrolling interest in the Company during the six months ended June 30, 2023 and the year ended December 31, 2022. Noncontrolling Interest LTIP Units Other Common Units Total Noncontrolling Common Units Noncontrolling Interest Balance at December 31, 2021 1,949,124 1,570,640 3,519,764 1.9 % Granted/Issued 470,237 — 470,237 N/A Forfeited (6,791) — (6,791) N/A Conversions from LTIP units to Other Common Units (98,494) 98,494 — N/A Redemptions from Other Common Units to common stock — (98,494) (98,494) N/A Balance at December 31, 2022 2,314,076 1,570,640 3,884,716 2.1 % Granted/Issued 326,215 — 326,215 N/A Forfeited (9,119) — (9,119) N/A Conversions from LTIP units to Other Common Units (78,834) 78,834 — N/A Redemptions from Other Common Units to common stock — (78,834) (78,834) N/A Balance at June 30, 2023 2,552,338 1,570,640 4,122,978 2.2 % |
Schedule of share-based payment award, LTIP unit awards, valuation assumptions | The following table summarizes the assumptions used in valuing such LTIP units granted during the six months ended June 30, 2023 (excluding the LTIP units granted pursuant to the 2020 performance units discussed in Note 8). LTIP Units Assumptions Grant date March 31, 2023 January 11, 2023 Expected term (years) 10 10 Expected stock price volatility 37.0 % 37.0 % Expected dividend yield 4.0 % 4.0 % Risk-free interest rate 3.81 % 3.90 % Fair value of LTIP units at issuance (in thousands) $ 628 $ 4,635 LTIP units at issuance 19,345 139,026 Fair value unit price per LTIP unit at issuance $ 32.47 $ 33.34 |
Schedule of activity related to unvested LTIP unit awards | The following table summarizes activity related to the Company’s unvested LTIP units during the six months ended June 30, 2023 and the year ended December 31, 2022. Unvested LTIP Units LTIP Units Weighted Average Grant Date Fair Value per Unit Balance at December 31, 2021 190,108 $ 27.84 Granted 470,237 $ 42.07 Vested (513,438) $ 38.67 Forfeited (6,791) $ 34.02 Balance at December 31, 2022 140,116 $ 35.60 Granted 326,215 $ 33.29 Vested (235,702) $ 34.01 Forfeited (9,119) $ 34.11 Balance at June 30, 2023 221,510 $ 33.96 |
Schedule of vested LTIP unit award activity | The following table summarizes the fair value at vesting for the LTIP units that vested during the three and six months ended June 30, 2023 and 2022. Three months ended June 30, Six months ended June 30, Vested LTIP units 2023 2022 2023 2022 Vested LTIP units 23,472 30,327 235,702 444,675 Fair value of vested LTIP units (in thousands) $ 839 $ 951 $ 7,862 $ 19,544 |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of share-based payment award, performance unit awards, valuation assumptions | The following table summarizes the assumptions used in valuing the performance units granted during the six months ended June 30, 2023. Performance Units Assumptions Grant date March 31, 2023 January 11, 2023 Expected stock price volatility 25.4 % 37.4 % Expected dividend yield 4.0 % 4.0 % Risk-free interest rate 3.8725 % 3.9060 % Fair value of performance units grant (in thousands) $ 609 $ 4,517 |
Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award | The following table summarizes the issuances of LTIP units and shares of common stock approved by the compensation committee of the board of directors and issued upon the settlement of the 2020 performance units at the conclusion of the applicable measuring period during the six months ended June 30, 2023. Settlement of Performance Units in LTIP Units or Shares of Common Stock 2020 Performance Units Measuring period conclusion date December 31, 2022 Issuance date January 11, 2023 Vested LTIP units 167,844 Vested shares of common stock 40,660 Shares of common stock repurchased and retired 875 |
Summary of Equity Compensation Expense | The following table summarizes the amount recorded in general and administrative expenses in the accompanying Consolidated Statements of Operations for the amortization of restricted shares of common stock, LTIP units, performance units, and the Company’s director compensation for the three and six months ended June 30, 2023 and 2022. Three months ended June 30, Six months ended June 30, Non-Cash Compensation Expense (in thousands) 2023 2022 2023 2022 Restricted shares of common stock $ 516 $ 565 $ 1,025 $ 1,113 LTIP units 1,414 1,367 2,742 2,651 Performance units 1,235 1,364 2,354 2,660 Director compensation (1) 128 125 264 246 Total non-cash compensation expense $ 3,293 $ 3,421 $ 6,385 $ 6,670 (1) All of the Company’s independent directors elected to receive shares of common stock in lieu of cash for their service during the three and six months ended June 30, 2023 and 2022. The number of shares of common stock granted was calculated based on the trailing 10 day average common stock price on the third business day preceding the grant date. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Operating Lease, Lease Income [Table Text Block] | The following table summarizes the components of rental income included in the accompanying Consolidated Statements of Operations for the three and six months ended June 30, 2023 and 2022. Three months ended June 30, Six months ended June 30, Rental Income (in thousands) 2023 2022 2023 2022 Fixed lease payments $ 133,164 $ 124,593 $ 264,250 $ 244,833 Variable lease payments 33,723 32,714 70,669 66,492 Straight-line rental income 4,495 3,728 9,607 8,232 Net increase to rental income related to above and below market lease amortization 57 22 181 101 Total rental income $ 171,439 $ 161,057 $ 344,707 $ 319,658 |
Lessor, Operating Lease, Payments to be Received, Maturity | The following table summarizes the maturity of fixed lease payments under the Company’s leases as of June 30, 2023. Year Maturity of Fixed Lease Payments (in thousands) Remainder of 2023 $ 271,277 2024 $ 521,593 2025 $ 463,939 2026 $ 386,524 2027 $ 305,959 Thereafter $ 891,179 |
Lease, Cost [Table Text Block] | The following table summarizes supplemental information related to operating lease right-of-use assets and operating lease liabilities recognized in the Company’s Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022. Operating Lease Term and Discount Rate June 30, 2023 December 31, 2022 Weighted average remaining lease term (years) 31.3 31.2 Weighted average discount rate 6.8 % 6.7 % The following table summarizes the operating lease cost included in the Company’s Consolidated Statements of Operations for the three and six months ended June 30, 2023 and 2022. Three months ended June 30, Six months ended June 30, Operating Lease Cost (in thousands) 2023 2022 2023 2022 Operating lease cost included in property expense attributable to ground leases $ 618 $ 605 $ 1,236 $ 1,138 Operating lease cost included in general and administrative expense attributable to corporate office leases 434 436 871 873 Total operating lease cost $ 1,052 $ 1,041 $ 2,107 $ 2,011 The following table summarizes supplemental cash flow information related to operating leases in the Company’s Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022. Six months ended June 30, Operating Leases (in thousands) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities (operating cash flows) $ 1,933 $ 1,850 Right-of-use assets obtained in exchange for new lease liabilities $ 141 $ — |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following table summarizes the maturity of operating lease liabilities under the Company’s ground leases and corporate office leases as of June 30, 2023. Year Maturity of Operating Lease Liabilities (1) (in thousands) Remainder of 2023 $ 1,957 2024 3,975 2025 4,022 2026 3,014 2027 2,023 Thereafter 81,962 Total lease payments 96,953 Less: Imputed interest (62,524) Present value of operating lease liabilities $ 34,429 (1) Operating lease liabilities do not include estimates of CPI rent changes required by certain ground lease agreements. Therefore, actual payments may differ from those presented. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings per common share | The following table reconciles the numerators and denominators in the computation of basic and diluted earnings per share of common stock for the three and six months ended June 30, 2023 and 2022. Three months ended June 30, Six months ended June 30, Earnings Per Share (in thousands, except per share data) 2023 2022 2023 2022 Numerator Net income attributable to common stockholders $ 51,553 $ 32,317 $ 100,966 $ 85,081 Denominator Weighted average common shares outstanding — basic 179,413 179,049 179,305 178,442 Effect of dilutive securities (1) Share-based compensation 318 95 210 144 Shares issuable under forward sales agreements 7 — 3 — Weighted average common shares outstanding — diluted 179,738 179,144 179,518 178,586 Net income per share — basic and diluted Net income per share attributable to common stockholders — basic $ 0.29 $ 0.18 $ 0.56 $ 0.48 Net income per share attributable to common stockholders — diluted $ 0.29 $ 0.18 $ 0.56 $ 0.48 |
Organization and Description _2
Organization and Description of Business (Details) ft² in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 ft² building state | Dec. 31, 2022 | |
Real Estate Properties [Line Items] | ||
Number of properties | building | 558 | |
Number of states in which the entity owned buildings | state | 41 | |
Area (in square feet) | ft² | 111.1 | |
STAG Industrial, Inc. [Member] | ||
Real Estate Properties [Line Items] | ||
Ownership interest in Operating Partnership (as a percent) | 97.80% | 97.90% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 13,511 | $ 25,884 | ||
Restricted cash | 1,023 | 905 | ||
Cash and cash equivalents and restricted cash—end of period | $ 14,534 | $ 26,789 | $ 15,847 | $ 23,196 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Uncertain Tax Position (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Liabilities for uncertain tax positions | $ 0 | $ 0 |
Rental Property - Summary (Deta
Rental Property - Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Property Subject to or Available for Operating Lease [Line Items] | ||
Land | $ 652,173 | $ 647,098 |
Buildings, net of accumulated depreciation of $566,695 and $513,053, respectively | 4,206,049 | 4,232,964 |
Tenant improvements, net of accumulated depreciation of $34,899 and $31,578, respectively | 40,944 | 44,526 |
Building and land improvements, net of accumulated depreciation of $239,894 and $218,497, respectively | 347,663 | 339,274 |
Construction in progress | 89,624 | 89,981 |
Deferred leasing intangibles, net of accumulated amortization of $357,435 and $328,848, respectively | 463,569 | 508,935 |
Building and Improvements, accumulated depreciation | 841,488 | 763,128 |
Deferred leasing intangible assets, accumulated amortization | 357,435 | 328,848 |
Total rental property, net | 5,800,022 | 5,862,778 |
Buildings, net of accumulated depreciation of $566,695 and $513,053, respectively | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Building and Improvements, accumulated depreciation | 566,695 | 513,053 |
Tenant improvements, net of accumulated depreciation of $34,899 and $31,578, respectively | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Building and Improvements, accumulated depreciation | 34,899 | 31,578 |
Building and land improvements, net of accumulated depreciation of $239,894 and $218,497, respectively | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Building and Improvements, accumulated depreciation | $ 239,894 | $ 218,497 |
Rental Property - Acquisitions
Rental Property - Acquisitions (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 USD ($) ft² building buildings | Jun. 30, 2023 USD ($) ft² building buildings | |
Asset Acquisition [Line Items] | ||
Number of properties | building | 558 | 558 |
Area (in square feet) | 111,100,000 | 111,100,000 |
Acquisitions 2023 | ||
Asset Acquisition [Line Items] | ||
Asset Acquisition, Consideration Transferred | $ | $ 40,664 | |
Number of properties | building | 2 | 2 |
Area (in square feet) | 235,003 | 235,003 |
Piscataway, NJ, 4-24-23 | ||
Asset Acquisition [Line Items] | ||
Asset Acquisition, Consideration Transferred | $ | $ 26,660 | |
Number of properties | buildings | 1 | 1 |
Area (in square feet) | 101,381 | 101,381 |
Greensboro, NC, 5-05-23 | ||
Asset Acquisition [Line Items] | ||
Asset Acquisition, Consideration Transferred | $ | $ 14,004 | |
Number of properties | buildings | 1 | 1 |
Area (in square feet) | 133,622 | 133,622 |
Rental Property - Acquisition_2
Rental Property - Acquisitions - Allocation of Consideration (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Allocation of the consideration paid for the acquired assets and liabilities | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Land | $ 7,933 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Buildings | 27,279 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Leasehold Improvements | 116 |
Business Acquisition, Purchase Price Allocation Building and Land Improvements | 2,097 |
Tenant prepaid rent | (511) |
Acquisitions 2023 | |
Allocation of the consideration paid for the acquired assets and liabilities | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net Before Debt Incurred | 40,664 |
In-place leases | |
Allocation of the consideration paid for the acquired assets and liabilities | |
Deferred leasing intangibles | $ (3,509) |
Weighted average amortization period of lease intangibles | 1 year 8 months 12 days |
Above market leases | |
Allocation of the consideration paid for the acquired assets and liabilities | |
Deferred leasing intangibles | $ (241) |
Weighted average amortization period of lease intangibles | 1 year 10 months 24 days |
Rental Property - Disposals (De
Rental Property - Disposals (Details) $ in Thousands, ft² in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) ft² building | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) ft² building | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of buildings disposed | building | 558 | 558 | |||
Area (in square feet) | ft² | 111.1 | 111.1 | |||
Total rental property, net | $ 5,800,022 | $ 5,800,022 | $ 5,862,778 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of buildings disposed | building | 7 | 7 | |||
Area (in square feet) | ft² | 1.2 | 1.2 | |||
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | $ 256 | $ 756 | $ 501 | $ 1,530 | |
Net proceeds from sales of rental property | 69,320 | ||||
Total rental property, net | $ 31,660 | 31,660 | |||
Gain (Loss) on Sale | $ 37,660 |
Rental Property - Deferred Leas
Rental Property - Deferred Leasing Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Deferred leasing intangibles, gross | $ 821,004 | $ 821,004 | $ 837,783 | ||
Deferred leasing intangibles assets, accumulated amortization | (357,435) | (357,435) | (328,848) | ||
Deferred leasing intangibles, net | 463,569 | 463,569 | 508,935 | ||
Below market lease, gross | 55,879 | 55,879 | 57,020 | ||
Below market lease, accumulated amortization | (27,467) | (27,467) | (24,593) | ||
Below market lease, net | 28,412 | 28,412 | 32,427 | ||
Net increase to rental income related to above and below market lease amortization | 57 | $ 22 | 181 | $ 101 | |
Above market leases | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Deferred leasing intangibles, gross | 83,281 | 83,281 | 86,172 | ||
Deferred leasing intangibles assets, accumulated amortization | (35,657) | (35,657) | (34,954) | ||
Deferred leasing intangibles, net | 47,624 | 47,624 | 51,218 | ||
Other intangible lease assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Deferred leasing intangibles, gross | 737,723 | 737,723 | 751,611 | ||
Deferred leasing intangibles assets, accumulated amortization | (321,778) | (321,778) | (293,894) | ||
Deferred leasing intangibles, net | 415,945 | 415,945 | $ 457,717 | ||
Amortization expense related to other intangible lease assets | $ 21,858 | $ 24,705 | $ 44,303 | $ 48,782 |
Debt - Summary (Details)
Debt - Summary (Details) $ in Thousands | 6 Months Ended | 17 Months Ended | ||||||
Mar. 31, 2023 | Jun. 30, 2023 USD ($) extention | Jun. 30, 2023 USD ($) extention Rate | Jun. 30, 2023 USD ($) extention | Jun. 29, 2024 | Jan. 12, 2024 | Jan. 05, 2023 Rate | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||||||
Principal outstanding | $ 2,440,623 | $ 2,440,623 | $ 2,440,623 | $ 2,498,780 | ||||
Long-term debt, gross | 2,448,868 | 2,448,868 | 2,448,868 | 2,508,040 | ||||
Debt Instrument, Unamortized Discount (Premium), Net | (139) | (139) | (139) | (137) | ||||
Unamortized debt issuance costs | $ (8,106) | $ (8,106) | $ (8,106) | (9,123) | ||||
Weighted average interest rate | 3.59% | 3.59% | 3.59% | |||||
Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.10% | |||||||
Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.30% | |||||||
Interest Rate Swaps | ||||||||
Debt Instrument [Line Items] | ||||||||
Derivative notional amount swapped | $ 1,025,000 | $ 1,025,000 | $ 1,025,000 | |||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 5.14078% | 5.14078% | 5.14078% | |||||
Unsecured Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | (0.02%) | |||||||
Unsecured Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.10% | |||||||
Term Loan | Scenario, Forecast [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | (0.02%) | |||||||
Term Loan | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.85% | |||||||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.10% | |||||||
$187.5 Million Unsecured Term Loan H | Scenario, Forecast [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | (0.02%) | |||||||
$187.5 Million Unsecured Term Loan I | Scenario, Forecast [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Increase (Decrease) | (0.02%) | |||||||
Unsecured Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal outstanding | $ 216,000 | $ 216,000 | $ 216,000 | 175,000 | ||||
Debt Instrument, Maturity Date | Oct. 23, 2026 | |||||||
Maximum borrowing capacity | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | |||||
Number Of Extensions | extention | 2 | 2 | 2 | |||||
Debt Instrument Term Extension Period | 6 months | |||||||
Unsecured Credit Facility | Prepaid Expenses and Other Assets | ||||||||
Debt Instrument [Line Items] | ||||||||
Unamortized debt issuance costs | $ (4,200) | $ (4,200) | $ (4,200) | (5,200) | ||||
Unsecured Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.855% | 0.775% | ||||||
Unsecured Term Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal outstanding | 1,021,106 | $ 1,021,106 | $ 1,021,106 | 1,020,440 | ||||
Long-term debt, gross | 1,025,000 | 1,025,000 | 1,025,000 | 1,025,000 | ||||
Unamortized debt issuance costs | (3,894) | (3,894) | (3,894) | (4,560) | ||||
Unsecured Term Loans | $200 Million Unsecured Term Loan F [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 200,000 | $ 200,000 | $ 200,000 | 200,000 | ||||
Interest rate, effective percentage | 2.94% | 2.94% | 2.94% | |||||
Debt Instrument, Maturity Date | Jan. 12, 2025 | |||||||
Fixed Interest Rate (as a percent) | 2.11% | 2.11% | 2.11% | |||||
Unsecured Term Loans | $300 Million Unsecured Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 300,000 | $ 300,000 | $ 300,000 | 300,000 | ||||
Interest rate, effective percentage | 1.78% | 1.78% | 1.78% | |||||
Debt Instrument, Maturity Date | Feb. 05, 2026 | |||||||
Fixed Interest Rate (as a percent) | 0.95% | 0.95% | 0.95% | |||||
Unsecured Term Loans | $150 Million Wells Fargo Unsecured Term Loan A | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 150,000 | $ 150,000 | $ 150,000 | 150,000 | ||||
Interest rate, effective percentage | 2.14% | 2.14% | 2.14% | |||||
Debt Instrument, Maturity Date | Mar. 15, 2027 | |||||||
Fixed Interest Rate (as a percent) | 1.31% | 1.31% | 1.31% | |||||
Unsecured Term Loans | $187.5 Million Unsecured Term Loan H | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 187,500 | $ 187,500 | $ 187,500 | 187,500 | ||||
Interest rate, effective percentage | 3.73% | 3.73% | 3.73% | |||||
Debt Instrument, Maturity Date | Jan. 25, 2028 | |||||||
Fixed Interest Rate (as a percent) | 2.90% | 2.90% | 2.90% | |||||
Unsecured Term Loans | $187.5 Million Unsecured Term Loan H | Scenario, Forecast [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed Interest Rate (as a percent) | 2.50% | |||||||
Unsecured Term Loans | $187.5 Million Unsecured Term Loan I | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 187,500 | $ 187,500 | $ 187,500 | 187,500 | ||||
Interest rate, effective percentage | 3.49% | 3.49% | 3.49% | |||||
Debt Instrument, Maturity Date | Jan. 25, 2028 | |||||||
Fixed Interest Rate (as a percent) | 2.66% | 2.66% | 2.66% | |||||
Unsecured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal outstanding | $ 1,195,790 | $ 1,195,790 | $ 1,195,790 | 1,295,442 | ||||
Long-term debt, gross | 1,200,000 | 1,200,000 | 1,200,000 | 1,300,000 | ||||
Unamortized debt issuance costs | (4,210) | (4,210) | (4,210) | (4,558) | ||||
Unsecured Notes | $100 Million Series F Unsecured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 0 | $ 0 | $ 0 | 100,000 | ||||
Stated interest rate | 3.98% | 3.98% | 3.98% | 3.98% | ||||
Debt Instrument, Maturity Date | Jan. 05, 2023 | |||||||
Unsecured Notes | $50 Million Series A Unsecured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 50,000 | $ 50,000 | $ 50,000 | 50,000 | ||||
Stated interest rate | 4.98% | 4.98% | 4.98% | |||||
Debt Instrument, Maturity Date | Oct. 01, 2024 | |||||||
Unsecured Notes | $100 Million Series D Unsecured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 100,000 | $ 100,000 | $ 100,000 | 100,000 | ||||
Stated interest rate | 4.32% | 4.32% | 4.32% | |||||
Debt Instrument, Maturity Date | Feb. 20, 2025 | |||||||
Unsecured Notes | $75 Million Series G Unsecured Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 75,000 | $ 75,000 | $ 75,000 | 75,000 | ||||
Stated interest rate | 4.10% | 4.10% | 4.10% | |||||
Debt Instrument, Maturity Date | Jun. 13, 2025 | |||||||
Unsecured Notes | $50 Million Series B Unsecured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 50,000 | $ 50,000 | $ 50,000 | 50,000 | ||||
Stated interest rate | 4.98% | 4.98% | 4.98% | |||||
Debt Instrument, Maturity Date | Jul. 01, 2026 | |||||||
Unsecured Notes | $80 Million Series C Unsecured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 80,000 | $ 80,000 | $ 80,000 | 80,000 | ||||
Stated interest rate | 4.42% | 4.42% | 4.42% | |||||
Debt Instrument, Maturity Date | Dec. 30, 2026 | |||||||
Unsecured Notes | $20 Million Series E Unsecured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 20,000 | $ 20,000 | $ 20,000 | 20,000 | ||||
Stated interest rate | 4.42% | 4.42% | 4.42% | |||||
Debt Instrument, Maturity Date | Feb. 20, 2027 | |||||||
Unsecured Notes | $100 Million Series H Unsecured Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 100,000 | $ 100,000 | $ 100,000 | 100,000 | ||||
Stated interest rate | 4.27% | 4.27% | 4.27% | |||||
Debt Instrument, Maturity Date | Jun. 13, 2028 | |||||||
Unsecured Notes | $275 Million Series I Unsecured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 275,000 | $ 275,000 | $ 275,000 | 275,000 | ||||
Stated interest rate | 2.80% | 2.80% | 2.80% | |||||
Debt Instrument, Maturity Date | Sep. 29, 2031 | |||||||
Unsecured Notes | $400 Million Series K Unsecured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 400,000 | $ 400,000 | $ 400,000 | 400,000 | ||||
Stated interest rate | 4.12% | 4.12% | 4.12% | |||||
Debt Instrument, Maturity Date | Jun. 28, 2032 | |||||||
Unsecured Notes | $50 Million Series J Unsecured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 50,000 | $ 50,000 | $ 50,000 | 50,000 | ||||
Stated interest rate | 2.95% | 2.95% | 2.95% | |||||
Debt Instrument, Maturity Date | Sep. 28, 2033 | |||||||
Mortgage Loans Payable | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal outstanding | $ 7,727 | $ 7,727 | $ 7,727 | 7,898 | ||||
Long-term debt, gross | 7,868 | 7,868 | 7,868 | 8,040 | ||||
Debt Instrument, Unamortized Discount (Premium), Net | (139) | (139) | (139) | (137) | ||||
Unamortized debt issuance costs | (2) | (2) | (2) | (5) | ||||
Mortgage Loans Payable | Thrivent Financial for Lutherans Due December 15, 2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 3,227 | $ 3,227 | $ 3,227 | 3,296 | ||||
Stated interest rate | 4.78% | 4.78% | 4.78% | |||||
Debt Instrument, Maturity Date | Dec. 15, 2023 | |||||||
Penalty free prepayment period | 3 months | |||||||
Mortgage Loans Payable | United of Omaha Life Insurance Company | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 4,641 | $ 4,641 | $ 4,641 | $ 4,744 | ||||
Stated interest rate | 3.71% | 3.71% | 3.71% | |||||
Debt Instrument, Maturity Date | Oct. 01, 2039 |
Debt - 2023 Activity (Details)
Debt - 2023 Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | 17 Months Ended | |||
Jan. 05, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Jun. 29, 2024 | |
Debt Instrument [Line Items] | |||||||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 780,700 | $ 780,700 | |||||
Debt Instrument, Covenant Compliance | The Company was in compliance with all such applicable restrictions and financial and other covenants | The Company was in compliance with all such applicable restrictions and financial and other covenants | |||||
Net book value of properties that are collateral for debt arrangements | $ 14,900 | $ 14,900 | $ 14,800 | ||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 5.14078% | 5.14078% | |||||
Interest Expense [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Amortization of deferred financing fees | $ 972 | $ 880 | $ 1,948 | $ 1,744 | |||
Line of Credit Facility, Commitment Fee Amount | 437 | $ 345 | 872 | $ 686 | |||
Accounts Payable and Accrued Liabilities [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest payable | $ 12,300 | $ 12,300 | $ 13,100 | ||||
$100 Million Series F Unsecured Notes | |||||||
Debt Instrument [Line Items] | |||||||
Repayment of unsecured term loans | $ 100,000 | ||||||
$100 Million Series F Unsecured Notes | Unsecured Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 3.98% | 3.98% | 3.98% | ||||
$187.5 Million Unsecured Term Loan H | Scenario, Forecast [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Increase (Decrease) | (0.02%) | ||||||
$187.5 Million Unsecured Term Loan I | Scenario, Forecast [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Increase (Decrease) | (0.02%) |
Debt - Fair Value (Details)
Debt - Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Principal outstanding | $ 2,440,623 | $ 2,498,780 |
Long-term debt, gross | 2,448,868 | 2,508,040 |
Unamortized debt issuance costs | (8,106) | (9,123) |
Long-term debt, fair value | 2,296,226 | 2,357,138 |
Debt Instrument, Unamortized Discount (Premium), Net | (139) | (137) |
Unsecured Credit Facility | ||
Debt Instrument [Line Items] | ||
Principal outstanding | 216,000 | 175,000 |
Long-term debt, fair value | 216,000 | 175,000 |
Unsecured Term Loans | ||
Debt Instrument [Line Items] | ||
Principal outstanding | 1,021,106 | 1,020,440 |
Long-term debt, gross | 1,025,000 | 1,025,000 |
Unamortized debt issuance costs | (3,894) | (4,560) |
Long-term debt, fair value | 1,025,000 | 1,025,000 |
Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Principal outstanding | 1,195,790 | 1,295,442 |
Long-term debt, gross | 1,200,000 | 1,300,000 |
Unamortized debt issuance costs | (4,210) | (4,558) |
Long-term debt, fair value | 1,048,519 | 1,150,283 |
Mortgage Loans Payable | ||
Debt Instrument [Line Items] | ||
Principal outstanding | 7,727 | 7,898 |
Long-term debt, gross | 7,868 | 8,040 |
Unamortized debt issuance costs | (2) | (5) |
Long-term debt, fair value | 6,707 | 6,855 |
Debt Instrument, Unamortized Discount (Premium), Net | $ (139) | $ (137) |
Derivative Financial Instrume_3
Derivative Financial Instruments - Risk Management and Fair Value (Details) $ in Thousands | Jun. 30, 2023 USD ($) interestRateSwaps | Dec. 31, 2022 USD ($) |
Fair value of the interest rate swaps outstanding | ||
Derivative, Number of Instruments Held | interestRateSwaps | 21 | |
Interest Rate Swaps | ||
Fair value of the interest rate swaps outstanding | ||
Notional amount assets | $ 1,200,000 | $ 1,650,000 |
Fair value - assets | 72,016 | 72,223 |
Notional amount liabilities | 0 | 0 |
Fair Value - liabilities | $ 0 | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Cash Flow Hedges and Contingent Features (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Cash Flow Hedges of Interest Rate Risk | ||||
Total interest expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded | $ 22,860 | $ 17,896 | $ 45,472 | $ 35,155 |
Interest Rate Swaps | ||||
Cash Flow Hedges of Interest Rate Risk | ||||
Additional amount reclassified from accumulated other comprehensive income (loss) as a increase (decrease) to interest expense over the next twelve months | (35,000) | (35,000) | ||
Income recognized in accumulated other comprehensive income on interest rate swaps | 24,168 | 10,628 | 15,626 | 44,134 |
Income (loss) reclassified from accumulated other comprehensive income into income as interest expense | 8,347 | (1,881) | 15,817 | (5,612) |
Total interest expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded | $ 22,860 | $ 17,896 | $ 45,472 | $ 35,155 |
Derivative Financial Instrume_5
Derivative Financial Instruments - FV on Recurring Basis (Details) - Interest Rate Swaps - Fair value on recurring basis - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Assets (liabilities): | ||
Interest rate swaps-Asset | $ 72,016 | $ 72,223 |
Level 1 | ||
Assets (liabilities): | ||
Interest rate swaps-Asset | 0 | 0 |
Level 2 | ||
Assets (liabilities): | ||
Interest rate swaps-Asset | 72,016 | 72,223 |
Level 3 | ||
Assets (liabilities): | ||
Interest rate swaps-Asset | $ 0 | $ 0 |
Equity - Stock Summary (Details
Equity - Stock Summary (Details) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Stockholders' Equity Note [Abstract] | ||
Preferred Stock, Shares Authorized | 20,000,000 | 20,000,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Shares Authorized | 300,000,000 | 300,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Equity - Common Stock ATM (Deta
Equity - Common Stock ATM (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 16, 2023 | May 05, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
At The Market Program 2022 $750 Million | ||||
Class of Stock [Line Items] | ||||
Common Stock Value Authorized under Stock Offering Program | $ 750,000 | |||
At The Market Program 2022 $750 Million | Common Stock | ||||
Class of Stock [Line Items] | ||||
Aggregate value of common stock available to be sold under the ATM | $ 679,463 | |||
Number of shares sold | 249,016 | |||
Net proceeds from the sale of common stock | $ 8,765 | |||
Forward Contract Indexed to Issuer's Equity, Indexed Shares | 992,295 | 725,698 | ||
Forward Contract Indexed to Issuer's Equity, Forward Rate Per Share | $ 36.5319 | $ 35.0458 | ||
Forward Contract Indexed to Issuer's Equity, Settlement Alternatives, Cash, at Fair Value | $ 36,300 | $ 25,400 | ||
Forward Contract Indexed to Issuer's Equity, Forward Rate Per Share, Net | $ 36.1820 | $ 34.6953 | ||
At The Market Program 2019 $600 Million | Common Stock | ||||
Class of Stock [Line Items] | ||||
Number of shares sold | 128,335 | |||
Net proceeds from the sale of common stock | $ 5,721 | |||
Weighted Average | At The Market Program 2022 $750 Million | Common Stock | ||||
Class of Stock [Line Items] | ||||
Sale of Stock, Price Per Share | $ 35.55 | |||
Weighted Average | At The Market Program 2019 $600 Million | Common Stock | ||||
Class of Stock [Line Items] | ||||
Sale of Stock, Price Per Share | $ 45.03 |
Equity - Restricted Stock (Deta
Equity - Restricted Stock (Details) - Restricted stock - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jan. 11, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period (in years) | 4 years | ||||||
Shares | |||||||
Unvested at beginning of period (in shares) | 156,703 | 185,715 | 185,715 | ||||
Granted (in shares) | 55,954 | 58,580 | |||||
Vested (in shares) | 0 | 0 | (68,625) | (73,556) | (73,556) | ||
Forfeited (in shares) | 0 | (14,036) | |||||
Unvested at end of period (in shares) | 144,032 | 144,032 | 156,703 | ||||
Fair value of restricted stock per share at grant date | $ 34.73 | $ 44.19 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 31.71 | 28.03 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | 0 | 36.16 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 35.73 | $ 35.73 | $ 34.32 | $ 28.86 | |||
Stock Repurchased and Retired During Period, Shares | 24,210 | 25,836 | |||||
Unrecognized compensation costs | $ 3,900 | $ 3,900 | |||||
Unrecognized compensation costs, period for recognition | 2 years 7 months 6 days | ||||||
Vested (in shares) | 0 | 0 | (68,625) | (73,556) | (73,556) | ||
Fair value of shares vested | $ 0 | $ 0 | $ 2,217 | $ 3,528 |
Noncontrolling Interest - Summa
Noncontrolling Interest - Summary (Details) - shares | 6 Months Ended | 12 Months Ended | ||
Jan. 11, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Limited Partner | ||||
Noncontrolling interest | ||||
Noncontrolling interest ownership percentage | 2.20% | 2.10% | 1.90% | |
LTIP Units | Share-based Compensation Award, Tranche One [Member] | ||||
Noncontrolling interest | ||||
Vesting period (in years) | 4 years | |||
LTIP Units | Independent Director | Share-based Compensation Award, Tranche One [Member] | ||||
Noncontrolling interest | ||||
Vesting period (in years) | 1 year | |||
Noncontrolling Interest - Unit holders in Operating Partnership | ||||
Noncontrolling interest | ||||
Units outstanding, balance at beginning of period (in units) | 3,884,716 | 3,519,764 | ||
Granted/Issued | 326,215 | 470,237 | ||
Forfeited | 9,119 | 6,791 | ||
Conversions from LTIP units to Other Common Units | 0 | 0 | ||
Redemptions from Other Common Units to common stock | 78,834 | 98,494 | ||
Units outstanding, balance at end of period (in units) | 4,122,978 | 3,884,716 | ||
LTIP Units | Noncontrolling Interest - Unit holders in Operating Partnership | ||||
Noncontrolling interest | ||||
Units outstanding, balance at beginning of period (in units) | 2,314,076 | 1,949,124 | ||
Granted/Issued | 326,215 | 470,237 | ||
Forfeited | 9,119 | 6,791 | ||
Conversions from LTIP units to Other Common Units | 78,834 | 98,494 | ||
Redemptions from Other Common Units to common stock | 0 | 0 | ||
Units outstanding, balance at end of period (in units) | 2,552,338 | 2,314,076 | ||
Other Common Units | Noncontrolling Interest - Unit holders in Operating Partnership | ||||
Noncontrolling interest | ||||
Units outstanding, balance at beginning of period (in units) | 1,570,640 | 1,570,640 | ||
Granted/Issued | 0 | 0 | ||
Forfeited | 0 | 0 | ||
Conversions from LTIP units to Other Common Units | 78,834 | 98,494 | ||
Redemptions from Other Common Units to common stock | 78,834 | 98,494 | ||
Units outstanding, balance at end of period (in units) | 1,570,640 | 1,570,640 |
Noncontrolling Interest - LTIP
Noncontrolling Interest - LTIP FV Assumptions (Details) - LTIP Units - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Jan. 11, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Assumptions | ||||
Expected term (years) | 10 years | 10 years | ||
Expected stock price volatility | 37% | 37% | ||
Expected dividend yield | 4% | 4% | ||
Risk-free interest rate | 3.81% | 3.90% | ||
Fair value of LTIP units at issuance (in thousands) | $ 628 | $ 4,635 | ||
Granted (in shares) | 19,345 | 139,026 | 326,215 | 470,237 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 32.47 | $ 33.34 | $ 33.29 | $ 42.07 |
Share-based Compensation Award, Tranche One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 4 years | |||
Executive Vice President | ||||
Assumptions | ||||
Fair value of LTIP units at issuance (in thousands) | $ 600 | |||
Granted (in shares) | 19,345 | |||
Executive Vice President | Share-based Compensation Award, Tranche One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 4 years |
Noncontrolling Interest - LTI_2
Noncontrolling Interest - LTIP Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 | Jan. 11, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
LTIP Units | ||||||||
Units | ||||||||
Unvested at beginning of period (in shares) | 140,116 | 190,108 | 190,108 | |||||
Granted | 19,345 | 139,026 | 326,215 | 470,237 | ||||
Vested (in units) | (23,472) | (30,327) | (235,702) | (444,675) | (513,438) | |||
Forfeited (in units) | (9,119) | (6,791) | ||||||
Unvested at end of period (in shares) | 221,510 | 221,510 | 140,116 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 33.96 | $ 33.96 | $ 35.60 | $ 27.84 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 32.47 | $ 33.34 | 33.29 | 42.07 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 34.01 | $ 38.67 | ||||||
Unrecognized compensation costs | $ 4,800 | $ 4,800 | ||||||
Unrecognized compensation costs, period for recognition | 2 years 7 months 6 days | |||||||
Vested (in units) | 23,472 | 30,327 | 235,702 | 444,675 | 513,438 | |||
Fair value of units vested | $ 839 | $ 951 | $ 7,862 | $ 19,544 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 34.11 | $ 34.02 | ||||||
Restricted stock | ||||||||
Units | ||||||||
Unvested at beginning of period (in shares) | 156,703 | 185,715 | 185,715 | |||||
Granted | 55,954 | 58,580 | ||||||
Vested (in units) | 0 | 0 | (68,625) | (73,556) | (73,556) | |||
Forfeited (in units) | 0 | (14,036) | ||||||
Unvested at end of period (in shares) | 144,032 | 144,032 | 156,703 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 35.73 | $ 35.73 | $ 34.32 | $ 28.86 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 34.73 | 44.19 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 31.71 | $ 28.03 | ||||||
Unrecognized compensation costs | $ 3,900 | $ 3,900 | ||||||
Unrecognized compensation costs, period for recognition | 2 years 7 months 6 days | |||||||
Vested (in units) | 0 | 0 | 68,625 | 73,556 | 73,556 | |||
Fair value of units vested | $ 0 | $ 0 | $ 2,217 | $ 3,528 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 0 | $ 36.16 |
Equity Incentive Plan - Perform
Equity Incentive Plan - Performance Plan Assumptions (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jan. 11, 2023 |
Performance shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected stock price volatility | 25.40% | 37.40% |
Expected dividend yield | 3.8725% | 4% |
Risk-free interest rate | 4% | 3.906% |
Fair value of performance units grant (in thousands) | $ 609 | $ 4,517 |
Performance shares | Executive Vice President | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of performance units grant (in thousands) | $ 600 | |
Performance shares | Equity Incentive Plan2011 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Allocation for Total Stockholder Return Compared to Industry Peer Group | 50% | |
Share-based Compensation Arrangement by Share-based Payment Award, Allocation for Total Stockholder Return Compared to Index | 50% | |
LTIP Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected stock price volatility | 37% | 37% |
Expected dividend yield | 4% | 4% |
Risk-free interest rate | 3.81% | 3.90% |
LTIP Units | Performance Units Granted in 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Issuance of vested LTIP units and shares | 167,844 | |
Stock Repurchased and Retired During Period, Shares | 875 | |
Common Stock | Performance Units Granted in 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Issuance of vested LTIP units and shares | 40,660 |
Equity Incentive Plan - 2023 Ac
Equity Incentive Plan - 2023 Activity (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Apr. 25, 2023 | Mar. 31, 2023 | Jan. 11, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 4 years | ||||
Granted | 55,954 | 58,580 | |||
Stock Repurchased and Retired During Period, Shares | 24,210 | 25,836 | |||
Unrecognized compensation costs | $ 3.9 | ||||
Unrecognized compensation costs, period for recognition | 2 years 7 months 6 days | ||||
LTIP Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted | 19,345 | 139,026 | 326,215 | 470,237 | |
Unrecognized compensation costs | $ 4.8 | ||||
Unrecognized compensation costs, period for recognition | 2 years 7 months 6 days | ||||
Performance shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation costs | $ 7.5 | ||||
Unrecognized compensation costs, period for recognition | 2 years | ||||
Equity Incentive Plan2011 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized | 10,142,461 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Additional Shares Authorized | 3,500,000 |
Equity Incentive Plan - Equity
Equity Incentive Plan - Equity Non-cash Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
General and Administrative Expenses | ||||
Equity Incentive Plan | ||||
Share-based compensation | $ 3,293 | $ 3,421 | $ 6,385 | $ 6,670 |
Restricted stock | General and Administrative Expenses | ||||
Equity Incentive Plan | ||||
Share-based compensation | 516 | 565 | 1,025 | 1,113 |
LTIP Units | General and Administrative Expenses | ||||
Equity Incentive Plan | ||||
Share-based compensation | 1,414 | 1,367 | 2,742 | 2,651 |
Performance shares | General and Administrative Expenses | ||||
Equity Incentive Plan | ||||
Share-based compensation | 1,235 | 1,364 | 2,354 | 2,660 |
Independent Director | General and Administrative Expenses | ||||
Equity Incentive Plan | ||||
Share-based compensation | $ 128 | $ 125 | $ 264 | $ 246 |
Common Stock | Independent Director | ||||
Equity Incentive Plan | ||||
Number of days of average trailing stock price used to calculate number of shares of common stock granted | 10 days | 10 days |
Leases - Rental Income (Details
Leases - Rental Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Fixed lease payments | $ 133,164 | $ 124,593 | $ 264,250 | $ 244,833 |
Variable lease payments | 33,723 | 32,714 | 70,669 | 66,492 |
Straight-line rental income | 4,495 | 3,728 | 9,607 | 8,232 |
Net increase to rental income related to above and below market lease amortization | 57 | 22 | 181 | 101 |
Rental income | $ 171,439 | $ 161,057 | $ 344,707 | $ 319,658 |
Leases - Tenant Accounts Receiv
Leases - Tenant Accounts Receivable (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Lease security deposits included in tenant prepaid rent and security deposits on the Balance Sheet | $ 19.5 | $ 19.1 |
Accrued Income Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Deferred Rent Receivables, Net | $ 98.8 | $ 91.2 |
Leases - Maturity of Fixed Leas
Leases - Maturity of Fixed Lease Payments (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Leases [Abstract] | |
2023 | $ 271,277 |
2024 | 521,593 |
2024 | 463,939 |
2025 | 386,524 |
2026 | 305,959 |
Thereafter | $ 891,179 |
Leases - Lessee Leases (Details
Leases - Lessee Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Lessee, Lease, Description [Line Items] | |||||
Operating Lease, Weighted Average Remaining Lease Term | 31 years 3 months 18 days | 31 years 3 months 18 days | 31 years 2 months 12 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 6.80% | 6.80% | 6.70% | ||
Lease, Cost | $ 1,052 | $ 1,041 | $ 2,107 | $ 2,011 | |
Operating Lease, Payments | 1,933 | 1,850 | |||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 141 | 0 | |||
Minimum [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Lessee, Operating Lease, Term of Contract | 2 years 9 months 18 days | 2 years 9 months 18 days | |||
Lessee, Operating Lease, Renewal Term | 10 years | 10 years | |||
Maximum [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Lessee, Operating Lease, Term of Contract | 47 years 2 months 12 days | 47 years 2 months 12 days | |||
Lessee, Operating Lease, Renewal Term | 20 years | 20 years | |||
Operating Expense [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease, Cost | $ 618 | 605 | $ 1,236 | 1,138 | |
General and Administrative Expenses | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease, Cost | $ 434 | $ 436 | $ 871 | $ 873 |
Leases - Maturity of Operating
Leases - Maturity of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2023 | $ 1,957 | |
2024 | 3,975 | |
2024 | 4,022 | |
2025 | 3,014 | |
2026 | 2,023 | |
Thereafter | 81,962 | |
Lessee, Operating Lease, Liability, Payments, Due | 96,953 | |
Less: Imputed interest | (62,524) | |
Operating lease liabilities | $ 34,429 | $ 35,100 |
Earnings Per Share - Participat
Earnings Per Share - Participating Securities (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Participating securities | 144,032 | 141,699 | 162,891 | 164,068 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Numerator and Denominator (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator | ||||
Net income attributable to common stockholders | $ 51,553 | $ 32,317 | $ 100,966 | $ 85,081 |
Denominator | ||||
Weighted average common shares outstanding — basic | 179,413 | 179,049 | 179,305 | 178,442 |
Shares issuable under forward sales agreements | 7 | 0 | 3 | 0 |
Weighted average common shares outstanding — diluted | 179,738 | 179,144 | 179,518 | 178,586 |
Net income per share attributable to common stockholders — basic | $ 0.29 | $ 0.18 | $ 0.56 | $ 0.48 |
Net income per share attributable to common stockholders — diluted | $ 0.29 | $ 0.18 | $ 0.56 | $ 0.48 |
Stock Compensation Plan | ||||
Denominator | ||||
Share-based compensation | 318 | 95 | 210 | 144 |
Restricted stock | ||||
Denominator | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 144 | 142 | 163 | 164 |
Commitments and Contingencies -
Commitments and Contingencies - Agreements (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Letters of credit outstanding | $ 3.3 |