STAG - Earnings call transcript Q2 2019

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Operator

Greetings, and welcome to STAG Industrial Second Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host Matts Pinard, Senior Vice President of Investor Relations. ahead. go Please

Matts Pinard

to quarter Welcome conference covering call Thank results. STAG second XXXX the you. Industrial's

In press the to quarterly stagindustrial.com addition the the supplemental an we under informational unaudited posted presentation Relations on Investor company's at release website section. distributed yesterday,

the Reform call, and remarks Act will of prepared your in the the as forward-looking XXXX. statements, company's defined to Private questions today's On answers contain Securities Litigation

those results amounts, discussed earnings risks address Examples and subject uncertainties industry to trends other matters differ rates, cause may trends, disposition and statements statements from Forward-looking forward-looking and rates, retention to matters. actual today. to of capacity, include acquisition that that relating dividend debt economic volumes, are statements and G&A

discussion filings these the to company's We supplemental contained package in the related with non-GAAP statements the information encourage definitions on of more available to measures listeners all forward-looking and company's our and to SEC the the review in reconciliations contained detailed website. the

statements as forward-looking As statements. represent any a management's update STAG reminder, of Industrial no to estimates forward-looking obligation assumes today.

today's Ben Chief Bill Officer; and Financial Butcher, our you'll from Chief On Executive Crooker, Officer. our hear call,

I Ben. will call turn now to the over

Ben Butcher

of Good They welcome Officer; the Dave will second book earnings pleased our Operations. answer and myself Steve with be the Chief data. of second of our to for today addition today financial their specific Mecke, everybody to you, Presenting quarter to Director available Real King in look We're Financial morning, and Bill discuss join to who'll areas questions Operating Officer, to are will STAG focus. telling the Industrial. me us be you operational you our about Estate Thank call Chief Also have Crooker, and Matt. to and forward quarter our results.

demand supply operate. The outpacing industrial virtually in market we remains with in which every new tenant healthy, sector

continued to these rates rental markets. grow Given these across conditions, have

well. to portfolio metrics Our this out. operating very second quarter bear perform STAG's continues and year-to-date

portfolio they of STAG's will from digit of NOI end and set the public when The reflects portfolio insulation geographic our occur. retention releasing cash market-specific has XX% double provide of should our and diversity upper at superior growth and opportunity our cash same-store any guidance. Year-to-date if spreads, vast dislocations, produced

abundance to continue quarter across was in. opportunity an in see second acquisition our we of QX, the investment company's We This markets the history. in demonstrated largest prospect

transactions continue refine demonstrated has platform We and an to evaluate and identify, have industrial that ability in built a close accretive to volume. granular

data to the our years processes to our use the investments of This past the remarks Bill's organization will train are bearing all promote several enhance to analytics internal employees dedicated guidance. regards to reflected Our with across and over our acquisition in be annual fruit.

XXX,XXX of Included This service part effort building for Jefferson, second an the completed in region. foot in Amazon quarter package, is and recently our square located Ohio. facility growing Amazon's West acquisition distribution integral an is distribution fulfillment volume delivery

As now second of representing ABR. quarter tenant end, is X.X% of our largest Amazon

Burlington square New facility quarter last warehouse Xa of in New Jersey at a speculative our the exit first Jersey. foot XXX,XXX project we In our distribution Turnpike development announced

with You for schedule is is made by may land excess project ago. recall completion years a that year-end. happy project on announce associated an this of the piece to on We're acquisition

progress you our exceed of point and pro or to will We initial continue update the expect this meet on to our at development forma.

operational turn will discuss over our it Bill will results. With to that, I who

Bill Crooker

to health net equal sell EBITDA value-add continue of operating We did The demonstrate cap buildings to stabilized portfolio for not FFO and acquire quarter Core $XXX metrics second second assets you, or morning totaled low of good quarter X.X the quarter. rate run Acquisition XXXX. the Leverage million any with quarter, the for debt X.X%. remains any everyone. was times. adjusted a rate this Thank the our with volume portfolio. Ben, of of $X.XX to

quarter leasing activity this XX.X% leasing Straight renewal and line XX.X% our XX%. of the excess X.X% strength releasing new of quarter straight XX.X% spreads XX.X% releasing markets example Georgia our seeing spreads demand respectively. an the the spreads we're well tenant new strong in and of downtime, we while of Included and line quarter was achieving renewal for were releasing as cash spreads respectively. backfill and and in also with Savannah, with building across Retention in for the zero and with

grew XX.X% retention by with Year-to-date and Same-store offset a retention a in by occupancy NOI spreads of for first positively cash grown our X% the rate year. quarter. the the impacted cash of in same-store XX.X% through quarter, pool cash which X.X% has half re-leasing driven decline of spreads cash by partially second NOI and and was re-leasing the same-store by

the to discussed proceeds the net in resulted $XXX activity. of Moving offering, which capital We executed market previously equity million. approximately

ATM our debt June, quarter-end, charge EBITDA X.X During an net and $XX times. raised adjusted of rate run ratio program. net times our million fixed we to coverage proceeds was X.X At through equaled additional

closed debt fixed The A revolver proceeds fully Including is rate end $XXX an all-in with originated swapped year Loan retire loan This XX, all-in the delayed used our X.XX%. million rate fixed liquidity term million. our funded $XXX million X.X swapped which loan on July balances. quarter with X.XX%. we an draw fully to is we to last of July Subsequent XX, of on is a transactions, On term $XXX these loan. was available term term with year

performance to our $XXX a updated value-add million. has X.XX%. Including aggregate stabilized The to acquisition $XXX we a rate range $XXX the X.XX% volume the has acquisition activity, million guidance to cap date, range between expect cash for $XXX guidance be increased been expected of million. of now to and acquisition Given volume stabilized also to our million to

Additionally, we to million of our updated guidance $XXX disposition million. have range $XX to a granular

Relations our of Investor supplemental in our can guidance in section. All XXXX website our to the found be posted

to back over it turn now Ben. will I

Ben Butcher

organization. levels company functional of Thanks, operating Bill. at the The high is areas across all

engaged is for the time to talented we're flow We continued dedicated STAG that's trying We your opportunity cash as have and in team we maximizing exciting what for our an accomplish, of to front of per support continue pursue an long-term to you shareholders. our us. thank share to company. returns extraordinarily This

Operator

question-and-answer [Operator go At conducting we’ll today first McGrath Instructions] Our Please time, is be session. a ahead. Evercore. question this from Sheila of

Sheila McGrath

lease Yes of the spot pricing. your Many morning. good sweet acquisitions longer quarter had during isn't on which your typically term,

you driving that's on bumping lower? a if those And the more purchases? wondering Just net into lease are long-term rates from competition cap little buyers

Ben Butcher

that in some mix cap to produces excuse Good -- for me of morning Sheila. the -- is which term, have month uninterrupted will for rate cash certainly lease acquisitions evidenced the and the projects Certainly flows -- longer quarter. produce longer -- the lower

seeking quarter terms. successful longer longer acquiring thresholds We're a -- maintaining we as deals. on cash per in and share just flow not we're long-term some by lease our are It's It not this IRR a lease design term basis.

Certainly been that up produce long-term kinds to kind as those against able again identify returns of looking terms. But run transactions we we do that are longer we've those will transactions. people that lease at those in of

Sheila McGrath

competition acquisition? Can Columbus, -- the acquisition the about talk you acquisition. in that asset on on on particular larger And

Ben Butcher

probably me -- to over let saw it We Steve. turn

Steve Mecke

actually went to few were We to marketed. by it. groups directly. acquire approached a lightly was that the Actually broker They

we broad-based the our the long-term off managers was typical players was the that wasn't do acquisitions, But against But run et competition typical regular and we limited as you'd -- -- and expect. cetera. particular So as pool. some mentioning, it fund as Ben

Sheila McGrath

one last one And Okay. for me.

you And On prepared Can that exceed are your in discuss project? target in remarks that for how your or project? detail is pro you'll what forma. the New meet yield tenant discussions on Jersey, cost that development your on confident you seem more going

Steve Mecke

for The to -- we're slabs. The potential tenants. push just is becoming about building reality

list the interested building. in are quotient reality you flat quite we that is So because of the is But point. will about a tenants the going up if have

people point where just the becomes site. So it visiting for we're the getting a reality into

we talked think, returns about in we expected our I to around development prior call at/or that returns. X% be it

Sheila McGrath

you. Thank great. Okay,

Operator

The Wells Brendan of from go Fargo. Finn next ahead. Please is question

Brendan Finn

morning. good guys, Hey

pretty a year. so spreads remarks, So you strong your talked this in far about this but rent have bit prepared been little

think XX.X% cash a on I basis.

So or -- update about there range? that range. full in mid guys have there be Is that end is previously up it exceed likely that, an you'd talked a on year you'll you to is the basis, single-digit

Ben Butcher

Yes.

still I to guidance it's is the for guidance high that for with comfortable think that mid year. -- still single-digits, our Brendan. We're

Brendan Finn

initially And then, versus driver year like been good. retention the your initial weren't, has just you a stronger across is they few Sounds guess, board? or that thought retention I stronger have what the where of renewed this Is leases that it expectations? the

Ben Butcher

that quarter this asset the to one a have tenant that we downtime. resulted -- that rolling and were on mention have did re-lease I right not are would assets on year, that retain. retained fence assumptions did had we the zero that are we projected we some retention that and there retain XXX% our that some was the of That's this quarter. that we in If beginning

Brendan Finn

That’s you. helpful. guys. Thanks, Got

Ben Butcher

You’re welcome.

Operator

from The next question Baird. of Rodgers Dave is

Dave Rodgers

much buying half Ben What given back construction and thinking a newer when And just there going you continue you of flips it that longer you the you're sell? I quick amount and and the your quarter. pipeline much Hey, the second second to I building to of seeing kind the side? going Are greater building. term the on closed guess merchant average the about year like of specifically you forward? acquisitions do seeing sounds in lease expect out are in acquisition and mean,

Ben Butcher

are merchant quickly. for putting no there the question that think of builders advantage out their I sale taking is assets relatively and market

it of old We're in still XX, continue as XX plenty as of X, I brand opportunity building that new not existing will as think today. in pricing as years seeing there. is seem the is strong lots long buildings opportunity

-- transaction. talked more we remarks we seeing capable as in about And in are more I our as prepared

acquire. pipeline a -- or would been probable in. pipeline we are ever as Our and markets being prospecting we is we're as a big bigger big more and the it's in-depth presence that deals The as is have a that of deals inquiry as

opportunity So see these including lots we build-to-suits. to continue of

Dave Rodgers

second leases did acquiring would to build-to-suits the or be of You five annual kind in that know, quarter average these escalators the that you're in like what those XX-year-old and you're... bump relative building rent you or the

Ben Butcher

at high the X% probably to end run X% low at X% the end. X%. They

it have might to You that clearly X% X%, X% above but range. see in

Steve Mecke

lower a the XX-year the rate. The Dave cap the higher the is what But lease Yeah, is the you longer straight longer X%. results plus in one term generally that bumps. around line generally get

rate. quarter a So that was this cap line XX in rates our that's -- straight point cash difference points. Generally has XX basis basis cap the between as around averaged XX

a the there see wider you with little longer-term leases. So spread

Dave Rodgers

the should there? XX months attention The to roll one. months XX we another Maybe to Great. anything tenant paying next looking over over be

Ben Butcher

Dave. there guidance in Nothing our it's mean factored particular. all well I into

Dave Rodgers

on guidance strong sell then assets disposition dispos. that. into guidance equity is kind I of kind many made the of up And as the markets Due component but lastly want realized what to the we you acquisition today? that have of down, to But not

Ben Butcher

get-go they're worth when we expectation think year know, would So we people pay the have the tempered were. still if our to paying -- and been we'll there continue to mantra think assets so portfolio that. us occur is year. certain again sell than of had more we beginning the or -- they're has we that, more and But -- have people through you we we'll think that amount sell We're will from we a do if, our expectation we at assets than that in -- the

And so that. in we've been consistent doing

certain every occurs Just a of year. amount that

And beginning of the the always year what clear be? number that at will I so

Dave Rodgers

Thanks guys. right. All

Operator

of The next question ahead. go Carroll is Markets. Capital RBC from Michael Please

Michael Carroll

competition that a I remaining the can going that understand it maybe and Ben term guess properties. valuations of cap market pushed being are thanks. private higher? you that the after just as I Yes, you're rates reason Has the how little environment. to has properties? different But the bit lower newer the a competitive talk due why Is lease about been? subset

Ben Butcher

look. advantage that that of of take all they're places not across Well, things is consistent the I continue we to one the competition we think

kind -- competition basically there is of the acquired, of of competing that we up assays evaluate of we at once than there the assets more come some competition. as almost no So, for those the some in names are --

but everywhere, XX-plus of markets only say competition looking competition think we're markets we're just class. underwrite. to across discipline continues someone there ones they our in those competition with and still assets. are seeing for that there's not very where with new So, be the and being a inquiring there favorite industrial we I out pricing It's obviously, about broadly that particularly competition and XX% increased rates or asset It out any

to a more inquiry but in we're in there have and So, competition very level it's terms it there, of assets that out we're -- is able volume of -- the broad fact acquisitions. levels of is increasing find

Michael Carroll

I lease quarter, term the those I have at assets? you're right looking And or pipeline in assets, we we've now. Okay. longer the breakout looking guess mean what's then the remaining is guess at normal I -- your like second on it your years? Is seen more some the over of like it few between of past seen

Ben Butcher

over it Steve to going couple term average is last of now. been that as pipeline the years. My is is of -- looks much status probably he different suspicion is not right that going give at you to remaining the it's the he than lease

Steve Mecke

mean It had just mix than on I what to years. Yes, previous that's quarter, It's quarters. it different all in couple true. the depends exactly similar last mix. very of this a was a running basically we

XX probably the the normalized is years term. plus indicative of less So, lease

Ben Butcher

longer Skewed lease a couple longer particularly up -- by terms. of lean-up

I able we been that but to lease think where we're opportunity to it. of couple last find we've bit the over last and a looking the portfolio quarters year, some of little the buy extend

as time opportunity in long-term that's most for for lease shorter just go. to we're over cash term the terms things. we'll best We're the at shareholders. better we agnostic if lease returns is to to provide are And our But our the looking flow where shareholders,

Michael Carroll

going that completed is Okay. the that to the in was deals with rates, kind of looking guess, X% assume high Then to going range, be initial cap fair are at in line those forward guidance acquisition I range it provided?

Ben Butcher

We guidance for the reduced range our year.

to X.XX quarter X.XX. This

feel within it So, pretty really range. that be we'll -- that comfortable

Michael Carroll

the the to was was due this quarter and to looking what to this mainly be half reduction low But expected due activity. going you're to quarter. I activity, that second guess cap at was it's XQ if back previously completed the in rates the

Ben Butcher

in still we're So, for Mike year, that cap for but the still -- the for range in X.XX year, still still our of This the rates quarter below, range. stabilized -- year cap cash in the X.XX. second are that we're are to was rates

running material from on change of rates. So, a we're not expecting cap been sort where we've

Michael Carroll

Thanks. Okay.

Operator

next from The question of go is JMP Securities. ahead. Germain Please Mitch

Mitch Germain

Hi.

what make? a the what I'd more How think cap more cap rate traditional we question. do rate guys I you one on Just Columbus rate versus should that cap mean acquisition how from differential about consider we be there? standard a characterize the

Ben Butcher

asset a Well, And our are much me I think as in that we've said for cap a few times, much very points the straight bumps. as XX are XX-year Bill cap excuse higher, our rates of -- rates new time rate all -- point that rent is across as CapEx cash the brand lease a higher of low nearly GAAP just the has line -- with cap measure quarter. basis mentioned, the acquisitions buildings

it credit and long-term a cap going has to a very So, rate no with bumps a and lease because CapEx. lower really it's have strong

develop develop accretive of flow the for rate. of will cash or out cash you looking long-term -- flow you can we're lower the kind So, cap

cap be yes of rate rate all lower those because will So, it factors. a and lower demonstrably cap

Mitch Germain

How development New much in you. then, how I other went this have might And exists detail, into your in of many you you're talked Jersey? Got if portfolio that you doing and opportunities last about type today? that quarter apologize a

Ben Butcher

lose excess big assets way there is the in a the degrees mean, building common to is way is I lot the Well not most of best enough. a or tenant because land own varying we the and to

something in expansion the generally the on on build-to-suit look ability transactions, that And building site. build we for. the capability expand people certainly So, is to

most isn't we're But lease excess tenant there certain on or or said flexibility available maintain land is a of want the that, an Having we lease excess whether covered are the either would by land development that the allow existing and the tenant. in land or keep and/or part that that our instances directly with mainly. to to evaluating, belief understanding

Mitch Germain

that Pursuing way evaluating, or... the entitlements? Is consider to

Ben Butcher

a be little might strong. That

Mitch Germain

Thank you. you. Got

Bill Crooker

then, instances. we are this, a on viability. for We investigate if work determine market want entitlement. we marketing it’s go path we the Those will down, of to And handful

Mitch Germain

it. Appreciate

Operator

Bill of next question James. ahead. Crow from Please is Raymond The go

Bill Crow

Ben, here? X% you if started longer Hey, either guess morning. sub Is I pipeline better toward right cap to rate okay, be would well really building good that as takeaway the it's your newer skew lease or as that a bumps?

Ben Butcher

Yes. Yes.

really rate again, measure. in in time think, We're our cap analysis discipline return I reiterating on the measures. longer-term focused

building roof older is can end And protect and just project so, leases, [indiscernible] on roof replaced lower someone's brand the part CapEx. a marginally less lower clean longer perhaps a on big CapEx, a the that can where rental even building replaced new bumps, redone

those cap all the towards I to necessarily, don't cap So rates, -- I that those lower think but don't down going that lower towards can things think mitigate rate. trending we're be

thing is other keep to our low. in The debt costs are mind

now. Our if or is equity pretty will you favorable right of costs cost equity

I should does. of every where all But still to in to FFO Across the is favorable. in cost relative accretive. we to XX% so also we're the I are acquisitions done think accretion XX% capital be year, mitigated FFO making looking lower place today. for it cap this more – marginal accretion CEO guess we've a where we're rates

immediately finding undertake. transactions accretive So we're still to

Bill Crow

us tenants? the Okay. And last my are you kind take you other And inside What weakening the mind sectors. your hearing? the question auto manufacturing Can data over have is seeing whether that's just that, few months. of we manufacturing second or been of

Ben Butcher

tenants. going over little my to Dave. but can opinion turn it to waste I the I'm closer a to he's

Dave King

Yeah.

their up little time. of more little And but over degree haven't high really cautious, there changed activity. might actions confidence. more Lease on a exhibiting have still a new a are held customers be aware, Our terms

Bill Crow

me. for Thank it That's you. Okay.

Dave King

Bill. Thanks,

Operator

next is Thalmann. The Massocca of John go Please ahead. question from Ladenburg

John Massocca

Good morning.

Ben Butcher

Good morning, John.

John Massocca

Amazon that new the with So, of line of I How me did kind overall impact guidance on that of mean, have bit a tell cap been midpoint the kind the in the rate in more probe more. cap quarter? the transaction? of much would little kind you rates without

Ben Butcher

Obviously, that asset. of a the to quarter. the on cap average flows be Clearly, than talked cap rate one add was it about derived the that because lower of the for at we've features rate from cash

into We're a acquired get have not raise had wouldn't had and acquisitions, it yes an transaction for but we that's So on average rate lower. clearly XX-year quarter obviously cap another rates would to cap cap transaction. We had the also that. that going rate the not lease mitigated the individual

John Massocca

And on can that properties again, of Amazon particular overbuilt being asset? what comfortable then Okay. maybe I as Given over Amazon got mean, specified. characterized be sometimes you with kind or

Just itself? property the any actual details on

Ben Butcher

put XX Sure. This in cost. going you XXX,XXX as for, a fulfillment a building Amazon shell is fulfillments other The today. a from bunch good of Amazon that state-of-the-art XX,XXX. be state-of-the-art is and is what we what e-commerce have what exactly a will Amazon are generic today. looking has they're now generic, years to there building shell tenants functional This looking But if this is for. can't of we Amazon going be on foresee top to as money of

John Massocca

any provide what was acquisition portion some then And value color you XQ can if of XXXX activity Okay. add? maybe on

Ben Butcher

We any quarter. activity not value-add did in do acquisition the

John Massocca

maybe know color drop significant fairly around XQ XQ. month-to-month provide it it's what Can that? some Okay. a I And came was but significantly. drove pretty quarter-over-quarter from leases variable pretty down you then to

Ben Butcher

volatile. as There be can quite is That going to is number mentioned point I no issue, to. outstanding you

quarter. time lot We to that up So it of for don't next well could predict tick a trying spend number. really very

Dave King

to or either middle go the right? vacancy boundaries or tends move tends out away But away to to get long-term, move – term month-to-month or longer from that from lease. the tenancy They either

John Massocca

given Okay. to going you're just of lower it that retention it longer I felt I that trend seeing? run like is rate mean, forward? mean, a a term your kind of went Could lease. kind

Ben Butcher

quarter, Dave as real a no it's I every there I is said different that number. trend mean, think to number.

changes yeah, every renewals. to the those But it of quarter. obviously leases some went So, longer-term with

John Massocca

Okay. you for very me. That's Thank much. it

Operator

Tan Sarah The next of question is Please ahead. go JPMorgan. from

Sarah Tan

Hi. Good morning.

you guys sales? you thought, -- portfolio about I So how thinking guys

Ben Butcher

looked sales we So portfolio raising. for at capital historically

for raise So a, to a raise times, didn't I driver at equity like it at again capital. sales. common portfolio route was we to the didn't us feel pricing. do to sales done equity. We've this That portfolio not just our is common point

positive operating We have leverage.

that. sale, portfolio when point, us to basis. And we not of and We When do at get issue think accretive this for advantage shareholders that believe better buy could a But that. for we our take the do an assets, the we assets, is common and grow equity we take of we so, obviously, sell it of portfolio. to size we on do advantage

Sarah Tan

Got it. Thank you.

Operator

Securities. Capital go question [Operator next One Instructions] Chris Our is from of Lucas ahead. Please

Chris Lucas

ones Guys, just a couple of think. I quick

an guys to down On the of quarter. perform? the the bring rate we should something price on sheet, to stock you this Is to balance equitization continue on that based run the leverage over the continues of see continue as sort during the acquisitions

out balance towards provided? guys should that range something you this that is -- the the within and gravitate have Or more

Ben Butcher

Yeah.

For lower But range. is to XX to we the as end at that $X year say, we're the Chris, of range previously the going operate $X.

moderate bit range as the end we a low year should little today. are But that of So, the progresses. the below

Chris Lucas

a you'd willing or any to take as equity sense I -- that down, to not your to way maybe strategy? no it, as guess So to think is continue markets range about the support be whether

Ben Butcher

leverage Yeah. we to now Right range. the operating we're with low always of something an our the as that. comfortable at $XXX consider end It's $XXX

Chris Lucas

done is Okay. versus I of point? a rate at of on then, this of third over side, in-house, How the couple much now. lot parties retention high your And success guess years Thanks. the last through leasing Ben, leasing

of you leasing it of out relates maintaining centralized are programs? a sort to versus program, where rolling sort as And regional

Ben Butcher

maintain also. we those of the relations leasing market because buy et a -- And lot all both from renewal and we brokers to to broker things on have third-party new take brokers also the advantage we knowledge -- use cetera. good So, obviously leasing of

intend move look will not regional But out to past integration do asset rolling asset we vertical at our management. managers. We

to not property in have we desire be So involved do a management.

-- Our managers have having else the in it's property use the discussions difficult markets expertise. in operate. developed to the take money take advantage on in. past somebody business which a on a It's And management focused individual We'll property business. we this of difficult best-in-class in

So, it's highly some managers integration also that at asset our likely, to-date the they're point. we'll maintain in the It's likely, level. highly we'll asset vertical But all management still limit in that have field at Boston.

Chris Lucas

Okay. And saw very then now, I your sense impacted large the last guys. to I or want other large recent headwind market whether very pipelines bread the butter and this will the like a as we industrial question any it… the for one-off the large to Like not for marketplace, know some transactions year? a marketplace -- but to of in opportunities some sort given half transactional you transactions me. right was be say in think I large occur somewhat year second and ago it

Ben Butcher

changing. top but market will one-off XX% owners of be the in the Well maybe impacted. We've probably a at ownership the more -- fragmentation the are past of between assets well, on, -- going by that owners. top it's XX yeah, the this industrial I little think of in market somewhere point the about XX owned the concentration the where not fungible is owned industrial U.S. all There talked

small usually or for their owned to we are from. are are by mostly That's So unrelated relatively who if selling of reasons the uncorrelated XX% you sellers. assets buying will. the And other

much supply. pretty a a there's So steady

market those size, Our factor facing increasing acquisition a more think people, in the people. presence outward more facing pipeline outward I support of acquisition for is our better

in for and acquisition. $X makes the GLP, as portfolios us actually transactions, identifying for of the rumored will a a of transactions some increase much that GLP billion the large being sell pursue. sense We're the those out likely will to probably for use as et as been -- down as up Blackstone may end that to The that And are source us the its data not assets impact transactions extent cetera like competitor post transaction. people to it's of be winnowed IPT

a billion-plus those fall for likely of assets We that ready be large have all there but to portfolio, and portfolio, $X prices up even analyze and competitive be out not a would for individual will at us. probably of that or indeed good that pick competitor will $X subset we be accretive will billion-plus

Chris Lucas

Great. it morning. Thank you. this Appreciate

Operator

is go from Alexander ahead. next of Please Bank America Pernokas Lynch. of The question Merrill

Alexander Pernokas

Hey, good are you morning. opportunity about wondering in markets And I and seeing markets? the which then just you ones the which if was rent out acquisitions? growth extend the stand could maybe talk And you're tenant most? specific most for seeing

Ben Butcher

So we ground-up -- or off as we start an prospect investor. we're a

and can Dayton Ohio. California So a going making not transaction decisions Ontario great and based There Ohio, on and we're really particular California a Ontario in markets. in Dayton be they're transaction to be really bad

asset opportunity that and parameters that acquisition building And indeed, individual specific very by that's the on the based on we're of we submarket evaluate the much presented the the building background particular specific and So, and every background focused it. acquisition. operates with market

right market not We like like to find to We're cash analysis. flow XX-plus this growing top So, it's down. shareholders. our to markets the really that broadly across We and opportunities long-term good don't this cash market. flow looking a avoid

Alexander Pernokas

Okay. more that. your a about are wondering or get bit approach, you on development? color Cool. was then you if pretty And seem was I on I so are what spec could wait-and-see more upside for the kind this of little thoughts how just going taking far. your And optimistic

Ben Butcher

Yeah.

acquiring -- business to not as we're marginal out land that do not specular a view did development we're specular and we a a our overall So, marginal development. incremental to add

cash out as develop of acquisitions, part to in land it of to evaluate transactions other land land part for additional acquisitions our and/or as we a a flow for value building certainly will the What that is development. we where as We purpose have additional not we're going have business as our own bank. development inherent that part of But appropriate. build-to-suit and appropriate development that potential

Alexander Pernokas

Thank Great. you. Okay.

Operator

to turn like additional Ben the Butcher There closing I for remarks. questions would are at call no back to this time.

Ben Butcher

Well, thank you morning. this for joining us everybody

in are continued is said really prepared front of of opportunity The well I've forward year, here remarks, at and us have the half extremely going we As expect XXXX success. things large, in good a and extremely to running into STAG. the a set second

So, you morning, summer. good have and this we rest the time appreciate hope your of a

Operator

conference. concludes This today's

your may disconnect now your lines. for you You Thank participation.

STAG Industrial (STAG) 31 Jul 192019 Q2 Earnings call transcript