STAG - Earnings call transcript Q2 2020

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Operator

Greetings and welcome to the STAG Industrial Second Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Matts Pinard, Senior Vice President of Investor Relations. sir. you, Thank

begin. You may

Matts Pinard

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

In XXXX. the the defined statements unaudited On answers quarterly Litigation stagindustrial.com addition to posted Securities the in today's supplemental we to under Act will prepared Reform informational the press call, release your the Private presentation remarks Relations questions as on Investor Company's Company's at yesterday, website of section. distributed and an forward-looking contain

all to subject discussed definitions risks uncertainties listeners statements forward-looking trends more our address non-GAAP and are Forward-looking matters. retention reconciliations and website. the debt to these to statements earnings encourage the those that other discussion measures cause detailed disposition in may from available filings supplemental contained statements We and to and Company's the rates, economic results acquisition Company's capacity, today. and SEC, actual forward-looking G&A relating informational the matters that in of to amounts, package dividend related trends, volumes, the and include on of rates, contained the differ review statements with Examples industry of

our to obligation call as Financial statements. hear the As statements forward-looking represent assumes managements Chief Officer. Butcher, our any turn On Ben from I now over and update today. a Crooker, STAG Officer; Industrial estimates no Bill today's call, reminder, will will to forward-looking of Ben. you Executive Chief

Ben Butcher

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

month be our a we impact of If items election to continue wave to the employees lives. there of will classroom economy? work-from-home? to to Will so, be students the polarization. that of have be questions enter these concrete or As we in virtually? return excessive around of how amid unanswered of COVID-XX? top reopening or of than November office levels there important upcoming impact educated Will all second our questions, presidential continue On the answers August, daily more Will the return this

However, large are we conference Many build do for for e-commerce normal. base calls the we supply annualized settle out know now Amazon our see in of to at specifically effectively. environment, of trends. dominant we have no This behavior question tenant. -- continue we of driver conferences. as to has chain required in into a already real estate. and new businesses Across industrial our necessity chain on platform, conferences a been associated the of e-commerce e-commerce longer growing and and Not the demand revenue. issue X.X% acceleration are This likely in of by whether permanent to this largest the changes for continues supply activity most e-commerce place post-COVID our company accounts leasing includes recent be of discussed consumer and The these as is size the required changed compete surprisingly, and presence an is presence and

the leasing the Let four now highlighted been have buildings over communications. status for that in recent me our

July, by over has foot leasing healthy Cup two the to in building a Solo vacated Our Hampstead, months. activity past amount Maryland, building square in a X seen million be of

of release XX take expectation accomplish expect the initial on information, to that outperform current it would estimate. Based Our that was XX this to building. to we months

a in a last variety Massachusetts, square-foot Our value-add to The of use. year subject for to was acquired from strongest XXX,XXX e-commerce tenants a building lease building mostly known short-term a received Taunton, units projects vacate tenant.

have to We tenant full dominant XX year happy e-commerce report started are that lease a we building. the to for

addition, million and termination zero fee see expectations significantly of metrics. and tenant. these the for In achieved The our downtime we from over a vacating budget rent the a half dollars resulting outperformed

of to lease New distribution to say again, development confirm on strategic Jersey, East dominant foot markets expectations in lease our on billion Coast, the sits a that a executed uptime. we've one Burlington, rent of a that New Turnpike. XXX,XXX and to full We're speculative Our square tenant, happy outperforming the building in access strongest both Jersey e-commerce

determined Finally, path the in GSA other Burlington, X will in foot Jersey, December. for optimal square million New buildings in we've the building the forward vacate

components We look across both assets multiple discuss portfolio, capable short, in turn our details quarter updating the multiple to operational updates of this the some by the feet. with potential pursue was building the management recall we're over release existing permanent and potential evidenced decision XA forward and to future, strong to be velocity building discussions may the having we'll XXXX the by continued forward development in by also for This full separately parcel. development submarket. will to You building with experienced to of guidance. of in near to these everybody the adjacent on on leasing land Exit asset evaluating who strength that, results XXX,XXX over and This square XX and includes paths, acres it asset team. With our solid performance the potential moving been continue driven After second Bill, I'll users. with has very

Bill Crooker

into morning moving volume in totaled quarter, X.X the related factoring proceeds activity stabilized year. end, the second Year-to-date, to and normalize included. as of the of our proceeds our for expect Core the FFO X.X%, an guidance was for at low increase to is X.X% million at the of second Good we and the Ben. runway quarter of compared million. $XXX.X cash you, increase the end XXXX. everyone. with acquisitions $X.XX prior leverage totaled X.X% Thank $XX.X remains and quarter of half debt X.X to Leverage we second cap Net acquisition those our equity respectively. forward when our outside straight-line rates quarter EBITDA Acquisition times to in equity offering January are adjusted times to

within X.X X.X% X.X%, our the respectively. operating short-term feet guidance, stated of acquisition cash in of in leasing square Note quarter increase impact of reducing of spreads disclosure activity that the exclude the million the and moves. half commenced As and we With volume to expect year. of spreads a with second our straight-line releasing

cash XXX,XXX XX%. XXX% released grew for the for square we quarter quarter. XX% the and buildings of and Additionally, during quarter the value-add year. X.X% X.X% rate feet largely Same-store Retention for the year-to-date, of driven retention by NOI was by is

quarter, the our billing, year X.X%, of rental of deferred generally X% been expected has the collected XX% uncollected by base of For remaining rent end. we with repayment

and arrears. XX, collected an X.X% based tenants pay received our billings July rental grade of be to July have of July of additional billings, XX.X% relates investment to As we rental in tenants yet based to

The uncollected consistent The next The expect is to billings relief bringing XX X.X% the granted To requests have We relief time rent framework tenants opposed base rental is of with by the referral we general totaling within total impacted remaining months. for rent requested, weeks, date, ABR smaller expected past associated XX next tenants rent have within period ABR. based rent payments of as has relief $XX.X million have two that amounts million. a with remit we million, been is the remaining rent of to practices, $X.X of our to with the $XX.X of abatement XX.X%. deferred. received X.X% billings these X.X% of the equal Of deferred points includes pandemic. the these basis payments been repaid uncollected rent approximately the

tenants we loss tenants. cash ability today, a climate. incurred million basis accounting, to and the credit situation total their As given of $XXX,XXX of Approximately, economic of loss financial our We related that their of to six on related to cash these These six points due of tenants credit credit pay NOI same-store approximately right, of to specific million $X.X credit view to XX equates The for $XXX,XXX straight related loss to and that cash guidance. line account the our of ABR. current approximately $X.X basis have loss write-off loss the loss. of cash

loss guidance these includes related credit to impacts Our XXXX for the tenants.

April through September Moving year. execute and all-in million, refinanced swapped March one-year exercise discretion to totaling the date this option which loan next The we fixed term result term scheduled has April in would April XXXX. fully capital XX, loans market C, of both on an maturity an is with in of of activity, two its rate mature periods, which the to X.XX% sole is to at outside STAG was and expansion XXXX. B $XXX

a debt view $XXX the from result until XXXX to extend. and follows. on guidance of transaction, March are based expected million million the remainder of between as where $XXX we XXXX. our XXXX health As updated to of exercise as XXXX we'll acquisition our update to our of maturing of We've rights and economy, uncertainty updated of related continue the market no have Components this continued the we volume warranted. the We guidance maintain of

and Due to rate expect to the sell not range with million be to stabilized reduced GSA expectation, in X.XX% New $XXX million. cap hold to cash range $XXX continue acquisitions Burlington, all assets We between Jersey. expected volume will decision to our X.XX%. we and We've the building an of

expect lower XX% retention, known historical a Cup and the We retention drivers includes non-retentions to than XX%. to of range GSA. within Solo The with continue for be and the

to includes and loss pools XXXX XXX year. credit We cash XXX for same-store X expect annual XXX to This of basis be between points. basis the range points growth range NOI a that

expect We $XX for between to year. and million G&A continue the to $XX million be

FFP the expected is average and earn for year. continue times leverage $X.XX I $X.XX to between leverage for low as second to the expect X.X the end of and year the and Ben. acquire per we increasing year. in be expect $X.XX and share per $X.XX with still of the back We now between between year, Capital over to range from turn will times a we to square-foot it core per more expenditures half X.XX

Ben Butcher

the inequality at national Thank pandemic recently, you, on Bill. two forefront topics our the and been issues let of attention persistent in society. closing, that of In touch have me

almost open Our a been basis. on months office voluntary has two for

have and part, effectively. However, collaboratively continued for and to the work-from-home work most our employees

have return a err in company on confident we we proud that of the opportunity, are or permit. been always employees that office are and place to conditions thing. allow We've procedures side a a to the right safe of STAG tries We as place the will all always when for doing

with and support have volunteer We financial paid believe we both backed in with hours. causes direct

us could However, recent that and caused do as us and individuals. for more, should of more more we realize and events company have made to us many a reflect as

doing a the community. expanding budget Some support causes. annual employees of in things significantly work We're increased for opportunity our company, and we're we and have the volunteer also engage for social to as financial the

opportunities We will awareness be the providing on understandings and employees subjects. educational to for our further

to practices realized hiring We hiring. modified and for one to that pool are are making time more the being there's and in-turn, company, and Our diverse a both our the applicant this hope community ensure so more steps can for morning broader do. I'll small that above outlined much questions. equitable others and we We back as your to you adjust. Thank only full-time progress operator for both the lead and taking turn we of it society

Operator

Thank you.

will be conducting a session. question-and-answer [Operator We you. Thank now instructions]

Please question Citi. with line Our Manny with comes of proceed question. Korchman first your from

Katy McConnell

for on Good morning. McConnell This Manny. Katie is

level on walk And retention XQ? date. retention high range? what in based of scenario you your confidence you factored the guidance of through achieved just us So, into the Can unchanged degree have downside for year-to-date

Ben Butcher

retention in three fourth the factors we're Jersey, the and the return execution of in those Maryland, remainder numbers the year. in for But New to because our third and retention year large of will those quarter. operations result of The potential are the are Cup the Hampstead, So, building down, the remainder Burlington, or lower part that very in the buildings. and Solo building confident in GSA

Katy McConnell

were signed short And and then can term that a you of basis of deals? this discuss the leases economic on those quarter percentage

Ben Butcher

more more I'll leases downturn or a obviously ask in term a little Dave short provide Obviously, activity. to detail. recession,

Dave King

were Anecdotally, delayed were looking other build-to-suits, work there stoppages. move that et to to who are COVID-related tenants cetera some buildings, by

So, of term we've benefited rentals. from short that in terms

Operator

proceed next comes line Sheila Our McGrath from Evercore. question. question of with with Please your

Sheila McGrath

had Jersey, to also value yield that The shake to on in yield? out? your typical in add good acquisition how one, development how the on New And have projects will project appeared mentioned these that Massachusetts compares outcomes. cost Any projects the on you and speculative the insights

Ben Butcher

cost at product project The development all a yield it's it one-time. a on is one and little on because just easier goes in

So, dramatically higher top was, on I would near cost. the double than yield straight yield digits, there say, expectations on

the a to is on So, yield and on little cost the buying because it. you're harder Taunton cost to successful project, very a additional facility applying the then building

two, So it by very from period of gets between certainly to actually both margin. quite long our that time. out professionals met but expect a a elements the are split wide flows enjoy we investment Those solid cash by

Sheila McGrath

third million. fourth at on and Year-to-date, quarter. then, unchanged. acquisition our very guidance active would about XXX we're And a that remains That imply

to occur soon. Just wondering shaping up pipeline with to acquisitions, if more pretty lot the a

Ben Butcher

up quarter, on but more now our we're it assets. bit that. X confident in individual sewing and the you assets But are pipeline million reduced out So, our Sheila, made seen there's third time, lot of still and fourth of normal onset We're pandemic, because the of a so always almost it's very bidding little quarters back also, during we're the a probably of are. and is as again, biggest recall, of

proud of I we're have something to pretty there? on think Bill -- you execute ability the add to do

Bill Crooker

some the current addition are to and September. to and with did expect that, pipeline and the to in to our on market August portfolios assets onset their those more and back larger assets in in third X.X market billion come the during Sellers that expected Yes, increase to sits we coming quarter. of pull

Sheila McGrath

require And or equity fund equity? is enough forward will additional current do do you your think the that to think expectations you it

Bill Crooker

expectation. including to so at not of equity, when our markets, sits leveraged, of hitting sufficient prepared guidance, the even This times capital be and as guidance equity the our back leverage year, markets. current in equity the the acquisition given it's that We'll the remarks X.X end without acquire flow high our

Operator

Lynch. comes question your next with Please proceed Our Bank from line Feldman Merrill America James of the with of question.

Elvis Rodriguez

on Good morning, Jamie. guys. is Elvis This for

much it in just and think range Just of of the at funding about product? Sheila's you upon at year you'll touching the somewhere can around acquisition Or do how or of you can future. talk you you potential the Can highlighting end that enough this question the the end equity up do? end pipeline higher there's not

Ben Butcher

our Simple we're acquisition. limited not is, no, capital in math by

of for So would new of year. acquired closer our the inside XXX are remainder we quarters three year the for of year. X.XX so our math that the million X.XX a our five is, new do at or would and to for simple where that above Longer guidance for today can be of as over can total term, assets guidance we From year. about well acquisitions we quarter guidance times. be -- we million that the can times stay is the guidance, high X the this upper is But stay end as

Elvis Rodriguez

that up is gives stock you're there maybe you're prices of you of and anything accretive continue at that seeing, sort Obviously, sort more more makes what saying. that is to it you than do deals. to your a these confidence do And could there level back

back So, understanding pipeline? an can industrials year to given trying change of here the the strong get the of in half just what

Ben Butcher

and there's the part world at a the at of look can we uncertainty. and world say, think there I the of little lot

brokerage whatever the heard market that reason times. has to the expectations are market degree been as held have think come are didn't to we in August from I expecting September. start that mentioned, that great going coming assets certainty, Bill So, or have in back are these developing of are normal for shop numerous and But

The -- us market, the our the further So, move that we have into certainly as to the for into But to -- strongly we we that numbers. supply be to believe to we'll of believe of range supply allow back to through expect enhanced. guidance. pipeline comes we assets us today, it that'll our we'll -- evaluate guidance get

Elvis Rodriguez

Okay me. for and just one more

bit than know, in indication or but your probably to any the early some bring So, offline markets re-shoring to or this U.S.? and to back or you're the about tenants just little starting talk to your benefits online, that see we've of portfolio assets using about a more manufacturing starting I signs to, talked

Ben Butcher

Yes, and I on think that. it's still early pretty days

I think, the is big what question at mark on cost. re-shoring

says times So U.S. made I pay, times to think Xx it is, can simply it. or agree because I there the don't the think in U.S. on consumers it's Xx

So, a history a and something gradually. can't, been in There's development happens to And a required the re-shoring, throw can't of obviously, what think couple plan you I do that planning is happens, time you has lot that. days.

is almost by of process amount re-shoring takes accelerated those and still but pandemic, the it which So, pandemic, ones fair a the will be, perhaps time. certainly one occurs with a of

talk lot a be about three development the to manufacturing people heard lead years. back could in of talk a two onshore. instance, plant bringing For I've times about pharma

not So, it's not, instantaneous things.

are positioned, happens, Our benefit they are from as as well assets they well are to population Wisconsin. production like positioned areas well centers, being that in around so traditional

Operator

comes Our Fargo. your from with Wells proceed Finn Brendan question. next with Please question

Brendan Finn

opening you about your I a guess, Ben, talked e-commerce. lot in remarks,

a can QX trajectory as types the these demand gotten later this of maybe surge has comment tenants? leasing pretty demand, off I like It but QX? big and on seemed e-commerce tenants for So, of from we've we demand just guess, of of early velocity you got had into leveled initially,

Ben Butcher

still we're I as expectation people will as mean down. we era, there's I on. maybe certainly of pandemic high think continue do other the of rush mad I slow any have that themselves here. There pandemic that thoughts? move, we a Bill, seeing activities such the in the it a was through but hopefully lot level, further think e-commerce at as an increases the out for will But very ensue came position you pandemic

Bill Crooker

initially was e-commerce have receded very from share the market. because say, would the high I other participants most

they've demand And normal of demand in As share's say, and see come our variety and to do broad-based across We down. industries. wide near the we'll a pretty close a it's gone rolls. vacancies back, term

Brendan Finn

the it average up relative QX. for picked just a deferrals, deferred like in little And to then, July looks bit rate monthly deferral on rents

rents now tenants deferred may there what is QX? guess, I you types So, in trend can about or receiving were talk are be not any of that

Bill Crooker

Bill. the same the QX deferred is Brian, tenants. quarter. deferrals of July tenants It's April population rent increase by and in rent in later Hey, driven The tenants that of May July. really paying agreeing receive and to it's and then The in those some

Ben Butcher

I had some Brendan deferral total time received time. about amount of think we any number deferral of limited those deferrals date. is for new tenants very tenants eight some right haven't requests or The to

Operator

question. your Your next Michael proceed Carroll with Please question comes line with from RBC. of

Michael Carroll

space. before what's are Ben, could know we of I provide occur highlighted? of how that and some you available commence months can those guess, lot tenants could specifically that relatively lease of color more that that had there? you ago, that start mean, like some a year-end, -- Is few it I expectations lease at space timing Solo actually larger guess about with you being can Cup. a looking should see I I that signed? sounded the we on think a blocks we soon

Ben Butcher

very, place in deeply will ongoing year. we're into going that too this and lease confident have without a negotiations, very So, we

Michael Carroll

And guess that XX you I users. started XX leases about can the you with a several then downtime? XX-month like usually much since assume typical you GSA -- know we sooner so full of the that about building have those you a bit underwrite property, earlier, seems months than could it little can I similarly I occur guess, takes But months it that downtime. talk

Ben Butcher

of a that. I around than mean we're we'll that confident very Yes, activity there's timeframe something a done in building, lot get shorter

Michael Carroll

you relative their choose where yes, place to on market Great. that, And to us are can in property? rents remind

Ben Butcher

market. and Yes. pretty Obviously, things, slightly, I other and close to TI maybe market, about lease we're say close to with the term variability pretty, pretty

Michael Carroll

spec on expectations pursue then, great. parcel there? this know an the Okay, plan if guess, developing on what's adjacent remarks. land your so, I parcel? to if you would or that's your on Do And that you asset I don't basis? I And a that prepared that, on missed building

Ben Butcher

Well, evaluate away it. the terms things, is far evaluate a and development, increase then the on experience, very or our Important the can good we of somebody to whether getting to not it value plan obviously build parcel position somebody permitting very had move to further in return the the to else dream build of a that where else we or opportunity. we continue to on forward, will land

activity now right is and full reasonably market speculative of the basis. So

to we're it's us sure someone's that going somebody it, build pretty So want on else. to or whether

Michael Carroll

make it long how mean, to take expires? little able the are now? until right does for kind difficult bit then the a And that Or start that entitlement lease lease I you it GSA Okay. process? of does more

Ben Butcher

We the and process the indeed, start process has are permitting to started is process ongoing. able of it,

Michael Carroll

can you And the about the commencements Burlington lease bit When start site me is P&L? at in property? then Massachusetts does the for hitting actually rent lastly talk a the Okay. little

Ben Butcher

heading in P&L because into line. are but has rent, month that's one of through coming one Mike, just straight Those free already, the

the one in tougher the one of one the turning Burlington and was QX. QX started in there's P&L, So, in

Operator

of Our question. line with from Please next Rogers proceed Baird. Dave comes your question with

Dave Rodgers

to morning, up Good wanted on something. follow

you out these six tenant bit? as is an see to higher I to of little be will are that move build-to-suit. in term earlier early respect helpful? retention? think months the a shouldn't expecting short outs, let's said of King and out this had a Dave solo tenants overall Is leases cut these doing out to with their road Or had nature, be push of in planned we Anymore renewals move that kind move XX proportion or down kind for additional the

Dave King

they're because a to that a and reference not leases. just a they're, So, of year for was extend our instances projects XXX,XXX ready couple for small where we were

Ben Butcher

of seen generally one haven't And how activity the as actually much shorter our tenants with has in leases. for to term activity. sort pretty a we again, demand We've much of leases. we've longer leases in I But everybody recession generally, is operationally recession. uncertainty leases demand typical the playbook of been, light surprises, has activity strong a has to an been doing think, shorter the longer of also watch is There for seen solve

Dave Rodgers

How would the in and or you I growth? then you little spreads guess, happened, whether, just rates on concessions discuss same you your that and negotiations the in a maybe taken that vein, What how markets? overall, pause seen the bit with a transactions tenants rent would terms pre-COVID market and levels of in things what negotiating of you've been have or,

Ben Butcher

it a the don't I line pause at a turn been don't there's think I think certainly certainly bit any it little down. didn't ingredient this I that trend but a think in flattened outset, was

Dave King

I term tariffs approaching might have a as this think And the term are disruption. situation long-term, short lease long that

much. haven't pricing levels or So, moved really I rent think

Ben Butcher

down. both numbers national and and numbers, supply to demand The be mass demand absorption supply forecast are

in have We a market, seen lot current leasing not at of be doesn't impact work voting the question. really maybe they'll

David Rogers

the and rate what you're today? maybe in That's question looks to regard here coming largely before, wondering looking keeping like you the bid in terms what less of seen in for with acquire pricing then acquisitions. tighter. me Okay ask last at little expectations were looking market and that's and to they frightening your to second a seen you're bit and product the it half and spread Have similar any change just to if but prices for diminish a the Have risky, of year? the is again you cap

Bill Crooker

June, pre-COVID pricing, some But closed as from pricings material. expecting We we going in -- maybe of deals slight one as spread discount to able The industrial. but with narrow is a deducts much get very able were we're forward, nothing X.X%. to two in price pretty them similar we're

Ben Butcher

I to think question risk. your as

I along risk early to during the probably think the were pandemic the travel assets. part assets that the of continue lower

a or price to wider market The and profiles different and whole adjustments. have April to So a of those are of March assets in you through perhaps sailed expect risk May. didn't September things and we lot probably in and saw than sort range come August

Dave Rodgers

those thoughts? appetite, riskier Ben, guys, this seems for at And you your assets for a of like capital use that would your good what be point

Ben Butcher

we I Yes. the that paid looking be take. looking not to -- overlays. for for We're mean, mean, -- beat we're the overpaid I to risks

we guardrails have in So, there.

but more not what I we we're cap. we're but that. looking chose Amazon but we'd XX-year mean, to Ontario, six asset what we to -- be what six in paid taking risk much not are a an too So Well, certainly California, risk we like lease a the is probably for than want cap, happy buy paid market for

Operator

Our JP line question of from comes Please next with question. proceed Muller with your Mike Morgan.

Mike Muller

quick one. a just Okay,

Just from the you little color wondering can just on negative going forward? leasing sprint the new leases

Ben Butcher

XX.X X.X comparable years. about the for term -- new are the prior years about in the we thing and leases overall, is Sure. I that guess, leases

trade bit market rolled effectively then we've and on we that about tax from of that term off in So rate, one rate. a benefited in chosen in the lower and new and as over accounts got abatement rents. delta and taking deal anticipated opportunity And of a a that the as hit we underwrote, half term the instance, for an

Operator

Our next your question of comes John Ladenburg with proceed with line from Please Thalmann. Massocca question.

John Massocca

year? know, reopen of quarter anything, do quarter acquisitions, think subsequent pipeline should it of the I come put it cadence and be, over things but in you in I as just remainder XQ so? of on be about Should or terms to the in place this you've and months expect you close your been here acquisitions, almost is kind kind always the of robust or two how should of able at guys kind next all towards weighted touching fruition to and XQ mean, we given the most didn't end that point. Just

Ben Butcher

revisited some we're hold those QX to of expect deals deals June. those the at and agreement or either those May we then to close under for on May, of the Yes, of close put and end middle acquisitions bulk of and and the middle able contract, in the remaining price in acquisitions the

to those, more come, end we Mary as to market. start close days come so the right and So In into XX to of and QX. at evaluate least takes transactions on started QX

John Massocca

recovery assuming the Okay, prepared rent you I'm no six cash then of kind what understood. I missed in if accounting, the into sorry from expecting resumption leases that And there? of go there's remarks, this are

Ben Butcher

loss and our That's FFO based credit guidance, guidance year. our the all into our same-store guidance, for

John Massocca

cost, or terms of just new I now of, But right -- the on recovery in kind leases, what mean

Ben Butcher

for year, matter John, spaces back remainder zero of the get to we getting of close this vacate those, those close those tenants year, and to the release and zero. they it's It's for can the space, but whether a just it's

Operator

Crow Your from James. question with comes proceed Raymond Please next Bill

Bill Crow

Ben, much for how second looking Amazon? derivative is stepping absorption And vital picture, annually? big how a the from attention leasing paid activity for new outside their second, STAG you to

Ben Butcher

space a it day, year the Amazon obviously large number. has and a believe can of chance certainly a absorber heard faster with this of end been But and I some huge, continue a very the the half million a a I've last huge a and is a maybe week There half or -- pace at year. day. of don't million

tenants big and can't So, that's ecommerce, But the half some of and buildings. it Amazon's the with certainly aggressive. industry ecommerce demand in part the seeing definitely row most not smaller engine of are forever. to builders only demand absorb some level they're at other it, they're as we're for and are second the of town that seem But

game that's watch, something although tenant very So, the important it's only and we not they're certainly have. to

Operator

your question One Securities. with with line next comes proceed [Operator instructions] Please from of Chris Lucas question. Our Capital

Chris Lucas

for you. questions housekeeping of couple just Bill,

the quarter? On the what fee termination that was for for lease specifically income the

Bill Crooker

that total the of million the cash. cash The the which termination $XXX,XXX side total a dollars it, gap X or income flow of was was

Chris Lucas

Okay. And that the kind income is or that EBITDA lump adjusted topics of you a solar together of screen? couple a one-off stream a page. The recurring is in

Ben Butcher

the it's gap contract a That's it's purposes, one-time. of for and over amortized for cash then recurring the life

in CAD for in solar core included purposes this $XX,XXX quarter income, FFO. about related $XXX,XXX CAD about So, is and included to

our is over. lease advertising net see income can So, this you how long

Operator

have turn to comments. like I questions over for We floor the further would this at now to you Mr. no back closing time Butcher.

Ben Butcher

Thank you, operator.

So, thank really looking a employees talked in of a are engaged in we us great as our balance sheet good position, for where, STAG they're and opportunity. place about this our morning. lot all is joining at you is

leasing well you pandemic half We're Our to and are accomplishing the we extremely to well on things STAG year managers that. success beyond sector sector. of on is great positioned forward great second political both the asset the is fact positioned the industrial and and within the the industrial a front. turmoil, again. in pretty Despite Thank time, unsettled looking sit

Operator

today's and Ladies gentlemen, this does conclude teleconference.

may wonderful participation disconnect time. a at You your day. Thank and have your this you lines for

STAG Industrial (STAG) 29 Jul 202020 Q2 Earnings call transcript