Earnings call transcript Q4 2022

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Operator

Thank you. Greetings and welcome to the STAG Industrial Fourth Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow a formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

pleasure and your Investor my Associate Steve now Markets Capital Relations. is to host, introduce Xiarhos, It Thank you, Steve.

You may begin.

Steve Xiarhos

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

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

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

uncertainties are Examples disposition that same-store cause subject economic include matters that address guidance, and and from today. may acquisition volumes, matters. results risks discussed forecast statements other and and of trends other leasing differ to and Forward-looking rates NOI, G&A, FFO, actual rent to prospects, industry statements retention of those core forward-looking collections,

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

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

with our On Financial Chief Executive to answer Pinard, you their of Crooker, Officer. to Bill area our Chief today's and Mike focus. Matts Also who will call, Officer; Chase, is is available hear from us here our Officer, today Chief Investment questions specific

over the turn call Bill. to now I'll

Bill Crooker

investments featured work This Thank team in our that STAG. a tremendous market, a operational opportunistic impressive transaction results. of call for quarter you efficiencies The to join XXXX flow Thank provided resulted year, the including and STAG hard and and cash us you, fourth telling and forward to We're earnings to another successes look fitting to conclusion results level growth, in quarter quarter growth. about record full for Steve. pleased Good everybody, strong volatile a have and morning, same-store Industrial. year fourth for the dedication. fourth to many year you you welcome

geopolitical The demand force recessionary drivers react including growth estate. see of digest industrial rates, levels macro outcomes. to labor for unrest, secular potential economy specific interest in The to wage this tailwind rising strong real industrial Against to variables, we multiple backdrop, various resulted and remain persistently continues real and have intact. of estate volatility, employment

Near and onshoring, for and level growth attractive STAG’s XXXX. robust rent the success portfolio will produce e-commerce, inventory in is foreseeable year's supply future. will to positioned chain rebuilds internal reconfiguration well on growth market last and build drive

X%, growth new the For internal record X.X% the supported escalators portfolio. growth. of setting the average by of annual was continuing year, trend growth rental of cash across levels NOI This same-store is sustainable our

months increases There's and will upward of spreads Leases pressure X% averaged annual the in accelerate certain increases past of have number. with signed leasing over on markets this varying XX Cash above. XXXX. X% rental

million million square As the we activity our renewal in and of XX.X%. commence the The leasing of XXXX. feet annual on we today, have X.X%. XXXX, projected square achieved leasing new This XXXX encompasses cash is expect addressed spreads achieving XX.X% in X.X escalator to-date feet leasing of average leasing rental of XX.X out of to

of Further the portfolio. and our strength demonstrating positioning

underwriting. is in building Carolina. foot schedule two won development to square progressing expected This process outperform our have Greer, is We in XXX,XXX project and South on

and project funded the activity We strong $XX have has of to-date. seen million pre-leasing $XX million

year. of year the stability ended acquisition front, as the the first price has quietly are part market growth this external seeking this continued into the dynamic On and sellers

are this acquisition uncertainty, Given volume wider ranges. with disposition market introducing than and XXXX we normal

back half attractive acquiring in XXXX. of opportunities case base in assumes modest success Our identifying the and

net points operate between of XXX reflect levels million million incremental and acquisition of of basis is $XX $XXX maintaining million. needed guidance expansion disposition $XXX volume to our while and guided rates and approximately capital capitalization half leverage We range. cash from No Expected the first between achieved $XXX expect an the we acquisition XXXX. million volume our midpoint at in

turn will XXXX. remaining guidance our Matts, who over cover that, and results it to With will I for

Matts Pinard

and good morning, investment XX.X% This incremental Core million and cash Bill, increase to was are X.X% general with the a free for retained $XXX.X continues dollars our an past share repayment XXXX. year, for and per $X.XX moderate we $X.XX debt other in messaging, paid. quarter for you, from year-over-year for corporate increase ratio distribution dividend XXXX. Thank of year, declining approximately These everyone. available payout to previous Consistent flow totaled at XX.X%. of FFO $XX million of opportunities, compared XX.X% to year-end dividends as after the purposes. XXXX, available the Cash

within normal liquidity range annualized remains with Leverage to net run year-end. million rate to EBITDA equal $XXX X.Xx adjusted our debt at with

XX.X% leases commenced square in X of and During generate XX totaling million straight respectively. the spreads quarter, we XX.X% feet, line leasing which cash

year. for representing for XX% adjusted for and for growth STAG. record downtime X% the XX.X% same-store and retention another Retention quarter backfills, same-store Cash annual the the and minimal grew When quarter NOI of was for X.X% the for XXXX. immediate was XX.X% adjusted instances for year,

of and XX% Our X.X%, XX% between to our approximately spreads XX.X at of XXXX on cash XX% million midpoint same-store year. square guidance for the of range to X.X% leasing growth guidance ranging range rental cash X%, pretention projected anchored leasing for weighted escalators the feet by approximately average is of

projected this renewal and leasing includes new volume that leasing. Note

in move our addressed XX.X% approximately of range. are outs guidance been leasing leasing cash of XXXX mentioned, spreads XX.X% Bill As included large There has aggregate accomplished to-date. our with projected no known

Note footage our square owned include that total of will year-end. XX.X% XXXX at same-store pool

activity, for capital matured million that's F, $XXX on minimal maturing end, placement of XXXX. X. In $XX.X debt repaid quarter private our to note only which are market the subsequent years we two terms There next January through million maturities

Components of can share. per share between is guidance website. to be our XXXX available include of per XX range our $X.XX in package, core section Our Page Relations FFO supplemental Investor $X.XX on of guidance the found to which

same-store be to cash X.X% expect retention XX% the for between year NOI a X% with and growth to range of We XX%.

$XXX $XXX a capitalization X.X%. is rate of $XX million volume acquisition of range to we million $XX Bill, by Disposition and Xx million. million. and to cash And expected a G&A million to to range $XXX $XX million guidance between EBITDA between net guidance and run finally, be adjusted X.XX% between is the is mentioned debt volume expect to with annualized rate X.Xx. As

I'll now back over Bill. turn to

Bill Crooker

and very and to with in significant the a look great year. Thank I forward XXXX. you, The the entered us in front across enjoyed Matts. great XXXX we platform. opportunities STAG company successful is position momentum another of

the turn to back it operator for over questions. now We'll

Operator

be question-and-answer We'll Instructions] now you. session. Thank Thank conducting a [Operator you.

Our Craig Mailman with first Citi. proceed question is Please question. from your with

Craig Mailman

of you math assuming XXX the XX spreads, with morning. Matts, the guys same-store pullback you and that are about it assuming the rent good some escalators to just basis annual are Is Hey, within back guidance, seems guys occupancy. right? in envelope doing point like about

Matts Pinard

correct. portfolio between Craig, offsetting basis Right to we've would occupancy occupied. operate now, very, XX% of average expect what the very very, Hey, roughly end XXXX We XX XX%. our to points not XX% spreads I That's is accomplished good are XX%. year-to-date loss that and guidance the And point this rental do the to is year occupancy Implied basically at is morning. healthy by in portfolio loss.

to occupancy the is and So spreads achieve. rental we're between trade-off that the a there able

Craig Mailman

debt a from perspective, then baked And you guys there? Fair. in do anything bad have

Matts Pinard

We do.

up into So We is consistent practices point tenant-by-tenant. really It's go budgeting. had it's asset points the cetera. rely the XX. incurred credit have the volatility with and that just the baked our roughly budgeting prudent tenants of loss et say we previous at We analysis. beginning basis I we XX isn't we've of for ground a this XX roughly but loss our credit budgeting our context, to team, on particularly think will credit What in guidance, identified years specific necessarily, we year, zero in XXXX, heightened basis managers,

Craig Mailman

you're done I guys No, been guys had done leases. at for to reporting I'm the leasing pickup sites are pullback you this that you've from above been what that's XXXX, year the of guys and rent has I the the blended in two-thirds driving far signed there where basis XX-ish% there's it have just so mix you here it seems as you the XX% on spreads that's given, is far rent midpoint for your a a different of remaining of a issue almost nice different of spaces. spreads bit a so helpful. at in the mean, like so conservatism guys you curious you leasing. little mean, a or leases far. Then, that on guys kind markets kind least

Bill Crooker

mix that's markets million XX it’s we driving across It's of I are leases change, the Bill. it's were XX it's to leasing. mix In hard a say, that's about a from Hey XX% square Yes. a XX% it's of those about number new Craig, renewals. across X.X it. feet lease, leases. – mean, really

right. that's out. we shaking mean, XX% things just that's where like think terms I in And the I XX%, of guidance to then are of feel

of the for where so we're we're that's said, the Matts As right budgeting year. just volatility there's a in lot market and now,

XX.X% we're right spreads. said our at we of As done expectations now, XX.X%

Craig Mailman

maybe into upside it of kind yields has assets that more looking give just near-term you rates that's already blowing does some cap you're type of stabilized non-core what kind rate, know the Is stabilized, that's the stuff the with to dispositions, to than was more where factor one it cap or acquisition you've Then just of and how kind stuff out on for just assets guys I'm upside? that we've that of Yes, still seen helpful sell? helpful. are I so curious

Bill Crooker

the consistent have lower year, longer Yes, called cap rates this expanded. – the past the it's escalators, and the that's with the more the wall,

and just out rates it's given on the a opportunistic dispositions. cap dispositions in are produce buying pretty as where capital. be dispositions for got put a we market. year volatility non-core a we XXXX, been to mix this past the that dispositions of lower it generally and are It’s range in we're source Our in there's that execute of wide than equity the the has Opportunistic

it’ll opportunistic dispositions. a mix non-core So be of and

Craig Mailman

midpoint at match, acquisitions assuming the guidance at net to if guys that the are you you on do the what’s guidance? midpoint, So kind in $XXX your and the of million FFO guys impact dispo

Matts Pinard

What $X.XX. is volume say of I midpoint weighted is the guidance is our guidance. backend acquisition that in will our So

take if the a fourth transactions zero we have what in obviously today. we through $X closed year-to-date look million, So did the quarter, you at

have We on closing nothing our pipeline.

contribution actual beginning to to of year. backend so more inquisitive the the So core-FFO opposed it’s as being weighted, relatively minimal really at is the

Craig Mailman

you. Thank Perfect.

Operator

you. Thank

proceed with Our question. with Dave is your next Rodgers question Baird. from Please

Dave Rodgers

word about a you’ve maybe Obviously, the little Yes. a wanted a seen what the you’re year pipeline as seeing think think bit lot maybe little slowing the other behind bit, and that came XXXX? up, the looking into color market posting rent bit normalization Hey demand something market a us Can is we end market industrial little you moving to the little Bill, numbers what are curtain start perspective? for in you’re with Matts, rent Maybe XXXX, growth moved you’re bit. kind on the a terms really for give a talk good and of growth of just good. the more that down the into calls I of morning. thinner on I But of and from into expecting level trend

Bill Crooker

question. good Dave,

to strong coming – seeing see we’re We’re demand, continuing supplies online.

coming looking at online. we’re about X.X% right now inventory of think I

New portfolio, online mid chain it has still due to longer rent this seeing. we’re is in, cycles growth. online rent supply than come for to it that just little our taking year to But supply normal call issues we’re projecting coming growth for next that the high-single-digits a

still really Demand is strong.

industries XPLs, We’re seeing lot different beverage, of a packaging including it food and across industry. e-commerce,

are little still seeing lease One a of from our bit really seeing demand. we’re uptick strong we thing gestation periods. just So is

occupancy. call and it tenants a seeing, LOI We’re longer between sign when month take

we some of So that bake into budgeting. our

So in a XXXX. little budget downtime bit longer we

Dave Rodgers

later move the little kind renewals, not for I of are guys they’re XX% XX% color, according this good and year, the almost you’re the although, we retention there the guidance that to should the and mix math, bit that But numbers some just gave guidance, the renewals detail uncertain you’ve with outs all you’re XX%. addressed maybe regard get have year? the it’s in already. guidance there it’s there the your the you – of and or you to Bill. in known not already like big that could into a at curious, And part in between things leases you’re and Appreciate hit realize a so that we but as Great. Are new of anticipate then kind really to of

Bill Crooker

or outs, we we with. pipeline. big no. to so leases No retention XXX,XXX of with pretty as XXXX. will spaces. if year XX% to we’re don’t anything we’re being any That number adjusted known look we at good months retention in two to at downtime No, for the of move guide something kind like immediate This one XX%, is feet because those larger, feel XX%, last The backfill increase square for had closer that we budgeting now only not XX% it right if looking does number vacant of have of

Dave Rodgers

helpful. That’s Okay.

type little a or value-add take more the in front. part thoughts on to Anything me you XXXX? I of the on maybe as where or your that Lastly acquisition you in capital development for investment at Thanks. budget guidance transactions? redevelopment would just doing different acquisitions consider guess that bit looking anticipate you’re

Bill Crooker

as Right acquisitions said value-adds, projects the been successful Matts really years. backend Developments, now, are Yes. the on over that redevelopments we’ve extremely weighted. those

We’re outperform budget our on in and prepared underwriting. our I the – remarks, mentioned tracking third our that’s development to as

there we agreement And little market, here so if still of with might it’s opportunities take there on execute a those. may bit going we’re some good probably be, to then discovery think we’ll to to – price But come so there’s pricing. there time a in and

Dave Rodgers

Thanks, Bill. it. Appreciate

Bill Crooker

Thanks, Dave.

Operator

you. Thank

with with Our Markets. Carroll is Capital your Michael question question. Please next from RBC proceed

Michael Carroll

Thanks. Yes.

where I are that. does are at now, of how ahead is compare mean, that addressed expectations this right leasing XXXX plan years you line you in roughly of the past? the I with I you of XX% mean, beginning you of know already With kind are as activity, the usually or in year?

Matts Pinard

This Mike. morning, Matts. Good is

the are are at high anywhere really higher have XX.X%, in XXs been what’s in this year the to tick low where we spreads. leasing of the roughly historically, here line We’re but maybe so a addressed. higher, XXs, point the

In the terms it’s relatively line. actual we progress made, of in

Michael Carroll

square was that Okay. about compared quarter. that million feet leasing this I that the range. I in spreads is last is I announced And like it just you And know looks incremental announced? were are anything XX% million then, X.X you extra that announced your leases announced within quarter near the XXXX last mean, feet there lumpy an activity to on guess And that correct? there X.X first, square

Bill Crooker

anticipated I think the just – did that one We up That we We that them. at I’m vastly of renew there. up up think the looking one about XX%. lumpy bigger was quarter next items the Matts, fourth the probably was I probably our was of outperformed budgets piece that ended there. lumpier rolling one building Amazon rolling rolling so XX%, in year the

Matts Pinard

high XXX,XXX just to Burlington, Mike, on, square that’s right. in foot a Jersey That’s New with add building rates. face

pushes those expectations being So to double certainly our numbers. able

Michael Carroll

mean, that the just already? is geographic stuff mix the great. done? I or needs Okay, like that be remaining compared mix is there you that the to anything announced XX% And different different completed or then the with to anything –

Bill Crooker

just and Not of in the typically at materially a time, longer. little different, that Mike. six stuff’s end months tenants year bit It’s ahead engage of renewal discussions expiring the sometimes

So the of difference are year. those I’d back half say more of only the expirations is

Michael Carroll

great. Thanks. Okay,

Bill Crooker

Thanks, Mike.

Operator

Thank you.

America. your from Camille question is next with of question. proceed with Please Bonnel Bank Our

Camille Bonnel

your and end have on of just year, quarter expectations the the terms to in high past this back acquisition transactions guidance? half of speak you the of activity investment your hitting low on confidence you Based in morning. Good to and the execute can

Bill Crooker

wide put with question tough the out we I pretty volatility guidance our of today. in would because ranges a market the there to answer. It’s say,

and now within normal, will our and right side. they’re there. operate on rate guidance our put them we we ranges. is is than guidance that expectation side Otherwise, it cap the out both wouldn’t So But wider the volume

Camille Bonnel

Okay. your for And next expiries you have coverage upcoming over great months. the few

you are where their Just making earlier issues in persisting terms that they’re tenant operations though, speak an you’re can chain whether footprints? on in building seeing decision to any their basing about supply logistics the and change of point

Bill Crooker

material. We haven’t anything seen

the small nothing bit earlier we’re taking in of seeing longer mentioned little just to responses, taking the LOI occupancy, I material a from a tenants from time is but one perspective. footprint only from As actually thing

Camille Bonnel

question, potential. the be final NOI on on going greater between store How X% should thinking that NOI to high the same opportunity X% just back mark-to-market leases the growth to have just the to within on And escalators, portfolio. other about side balance hand, two these same-store growth? factors focusing contributing a On you Okay. we you while mentioned growth now rental number of one there’s

Bill Crooker

tenants – average plus lease want the rents. a now. it X% we’ve on below to Frankly, for really not portfolio. transaction the leases we’re X% XXXX, I’ll is, XXXX, negotiation, is inverse. you to escalators to signing – rollover if add we’re bumps. and to think signed the leases of the we’re so rate I pressure think maybe – But how so escalated are mentioned Well, XX% the some upward sometimes I inclined XX% start, And close for is face and for we at look And on leases And with signing here. bumps every can think lower guidance higher Matts that we’re to in about bumps X.X% leases pay any and more seeing X.X% that in those

is on to add independent Anything really it lease. each negotiation want you think specific Matts? there, I So a else

Matts Pinard

Yes.

important of point the that year guidance is are said Those I to is upward note building average weighted this at across portfolio, pressure there the one think our number. what the what’s that, But biggest escalators sit today the important I the made of for Bill Bill blocks think X.X%. here of

XX% lease the to XXX portfolio of year. We square a million have feet, XX% circa anywhere we

at leases to striking that begin with we here the in really least aggregate. accomplish to sat terms in would the my that the that be expectation are X% takes the of X.X% the rental leasing would fact escalators, this expect of to higher move if but due it we we be months, So time It year. XX

Camille Bonnel

Thank color. Okay. the you for

Operator

Thank you.

Petersen Our proceed next question is Jefferies. with question. from with your Please Jon

Jon Petersen

Thanks. Okay.

just I think one I question. have

just moving, going how more you I things us more market, of guess, obviously are the that – could I being we more guys drivers expect what to number you half on the increase moving pipeline, like as like kind seller’s you’re putting that think it’s not year, of way guys color been look the wonder on And are again? and the drivers that it’s you bigger you I that the are why but acquisitions, the of down. looking some give into have are? we what back are should guess, it’s So selective. if what the about expecting pipeline

Bill Crooker

Yes.

We’re half. back acquisitions the expecting more in

discovery Just is now and at a we we in feel occur volume. acquisition that projecting to the half. back of some going price that the range have point With right like said, we’re wide being

being portfolios there underwritten the a portfolios In we’ve before the pipeline. pipeline We’ve terms in the portfolios. factor of of is lower, lack big bid on

add a in pipeline. We there’s have a not on if you winning been there? to the any anything portfolios, And Mike, not portfolios, of of large successful but want lot lot

Mike Chase

not lightly back of it. the it’s many more seeing out and looked in lot now. that marketed market Yes. I coming are A transactions Bill, transactions that fully definitely transactions marketed of market you right I are what coming we’re in as past kind towards heavily off weighted traded. think around the transactions. have and granular at we’ve There’s mean not mentioned

pipeline. in So accounted slight for that the decrease would be the

Bill Crooker

similar And pretty last the stuff the the to years. general the been of Jon, is we’ve makeup couple acquiring pipeline,

Jon Petersen

very it Okay. Thank you All me. That’s much. right. for

Bill Crooker

Jon. Thanks,

Operator

you. Thank

your next Fargo. with with Our from question. is Belcher Jason Please Wells question proceed

Jason Belcher

morning. good as you’ve on-shoring for near-shoring Bill, and potential and Thanks tailwinds referenced demand. industrial

over within your you or could just than helpful? be think out more share And if magnitude you markets benefit color those you time? or around potential expect about wondering how are will Just others? you talk would to trends Any portfolio timing if certain there could that benefit play

Bill Crooker

away difficult and seeing – El as to we’re portfolio try one happening question I’ll to of I magnitude But onshoring market. today nearshoring, a chain the really Yes, lot mean, a answer. because well reconfiguration. the from our as There’s benefit there supply it stay in that’s Paso

We’re some the also Southeast. seeing in

that today probably see to that some the expect markets. some the the But see Midwest, We of portfolio out. it’s pans the term in in medium impacting we’ll in border how but

Jason Belcher

Can on helpful. Thank update of us to And in your remains secondly, about you. any the give exposure you’ve years? expiring and had That’s leases couple Amazon at top tenant your at you recent next then ABR. Amazon discussions just any of there X% an

Bill Crooker

Sure. doubled that we Yes. We mentioned. our had I just the we Amazon Again, that lease budgets. renewed

end XX%. We up roll XX% and up expected the rolling up

think It’s early second The It’s is XXX-ish So lease out. has that market That’s below generation a in small to roll building square a lease a been pushed a good lease next thousand XXXX. foot I building. lease. generation Amazon. [ph] third or

it to It’s for suit functional So a a building. Amazon. build wasn’t

able So us. leasing we’ve tenants to with either facilities or renewals does overall has renew. been quite those the that not the And in facilities working new Amazon Amazon exposure operate well out been for

Jason Belcher

a Thanks color. Appreciate lot. the

Bill Crooker

you. Thank

Operator

Thank you.

proceed from with next question Our Mike Please with your question. JPMorgan. is Mueller

Mike Mueller

equity guess, call for issuer is Hi. in the And I the guidance, the missed acquisitions? it, embedded But in Yes. have secondly, given in net this. you there an May XXXX any mid-XXs? are

Matts Pinard

answer zero the morning. without needing our of first, part Good equity capital. I can We to which both midpoint debt really can first on and achieve I incremental makes guidance The think that capital, Mike. is sense. assume side. the Hey, the incremental structured

We equity within want where last year. Leverage January right it range. our haven’t is since issued we

dividends. important of an to cash $XX flow make I generating here think we is million approximately free are after point

much don’t we refinancing, of have maturing. terms In

bunch We have of liquidity. a

where say have do the share not is now, interest. an right price would we I

that as think I markets change.

flowing acquisition growth growth. we guidance very external side. did The lot But to and are obviously we We’re volatile, capital through of the markets there’s reason uncertainty why the is way put the evaluate. strong to very internal that’s going similar a XXXX,

putting as business and described, Bill our it. this are to ranges run relatively incremental equity it in if don’t together we able we if to careful this without need – be lower we So wide year need very

Mike Mueller

Got it.

But going is call full the to are time specifically year of you I for to anything then year guess or upcoming in And roles the just you back this more apologize for is on the that XX% so and XX%. question XX% seeing spread question the that an assumption? Okay. one far pull down would the this.

Bill Crooker

It’s that’s the an assumption, are half Mike. really the And that leases in year. rolling it It’s is. what back of

it’s now So just XX%. to to an that’s XX% it, assumption that right now. driving right Nothing known our guidance driving

Mike Mueller

it. Got

Thank Okay. you.

Bill Crooker

Thanks.

Operator

Thank you.

next Markets. Borden BMO proceed is Our with your with question from Eric Capital Please question.

Eric Borden

from Hey to hoping better guys, morning. color I understand of good was some kind you provide the just blocks to XXXX. building if XXXX

Just additional I have there? be similar NOI some understand FFO just an seems you provide that hoping one-timers on store same to year drag year, Thanks. a there were as applied last color that growth but XQ it some share. could of per given you last in

Matts Pinard

you arrive walk then XXXX to and guidance Want we absolutely. XXXX Yes, there. until through our

think accounted important note in a to did we a item. It I QX, First, it’s call $X.XX. last earnings for approximately have one-time on the

in is there So XXXX. of $X.XX one-time items

We a settlement from XXXX any was time in related That impacted XXXX. items time item prior budging one are by not tenant, to again, $X.XX. a one

this fulfill rates. impacting impacting is and a else, initial discussed on guidance, two terms increasing major and of our core the short-term we volume, And everyone the In us there’s which cadence really obviously interest few but call. acquisition drivers XXXX, times

investments to in first heavily half second very half XXXX of the the So quarter. weighted of including the was volume year in in million modest the result with $X acquisition fourth our and

As will be an assumes closing acquired on our to impact volume This XXXX anything back opposed year. as is front a haven’t on going its earning have and do anything earnings. We to our acquisition guidance pipeline earnings weighted. not release have our states, weighted this half that half where we

cost In year the we sheet the to rate the other rate except terms last our today interest points comparing increased have balance almost and major for XXX that’s be of rates, impact. revolvers going on fixed revolver. average basis Interest to a

Eric Borden

the the just back And to do where is the anticipate bid-ask know how Okay. you That’s know it towards helpful. half some on the curious front, maybe your and guidance, then of today rate spread where the much you’ve in moving provided but wider cap is year? today. I range

Bill Crooker

is of it’s the bid-ask seeing as answer a – lot the year-over-year wide, market transactions number down hard acquisitions that of of transact is is not spread with in you’re to whole and a frankly us industrial which terms pretty specifically, The bid-ask why significantly done.

narrow even PPI came So we Fed bid-ask the a volatility latest, data today. the the spread bit. be continues There to out with and that expect to

So there’s information cost, a debt of which and impacts out lot cap that’s it coming Fed that and reacts the the impacts rate.

the that transactions year So settles industrial in out half back come of and hopefully the the market start to to fruition.

Eric Borden

me. All right. all Great. for guys. That’s Thanks

Bill Crooker

Thanks.

Operator

proceed Please is question. Instructions] Vince with your with Tibone Street. Our [Operator from question Green next

Vince Tibone

Stag wanted same Hi, stuff. to on rate the range implied the sense of again, six try and be in would equity around because is potentially just you funding a just be just to acquiring up a question I in cap interested morning. get right issuing you’d follow numbers, trading on good when our

So, of neutral-ish cost capital.

not the guess simply stock like issue to I price equity comfortable why to change or So it needs issuing get what equity you again?

Matts Pinard

Hey morning. Vince. Good

overarching I schedule. mentioned, have not fund equity I where issuing anything our think on we need number right? think do of one, proceeds, to I is answer the Leverage we is it. As uses closing

as the equity. to have sit operate without here today, So, ability we we

side. out figure external to growth on discovery the the price trying still We’re

portfolio. leverage of running We’re generating can our just that cash manage $XX way. million We

discussed earlier, Bill we As have the ability capital credibly recycle. to

the need our it and do to the strength not taking with a at look capital a just as volatile of a markets do position, taking that here sits at today. And We’re particularly really look we our portfolio. have

Bill Crooker

We I’m And don’t the certainly looking just Yes, mean, in one being I the think at assets. for want patient. answer Vince, I we asset to is that, short overpay closed we’re QX.

strong We’re great it’s able market. a a with credit a lease cap was pack And at really sale pretty to a rate. a building decent that it and acquire high and

those then those those are right we those a at But deploy pipeline we’d have a we whole could whole we acquisitions. so now of and had the And it. that equity creatively of opportunities think long levels, pipeline if don’t and about hard

So we’re being patient.

We’re picking perspective flow. are with balance we’re to our from cash retained a and spots liquidity and sheet we where so do able

Vince Tibone

And just modeling Got makes confirm, perspective. it. sense. like a then to from That

excess average you kind any cash how be revolver? put just like assuming acquisitions should incremental of rate kind mind for debt? think are good of to it? And your assume in any the Is then on if we what’s in just about So of so, flow maybe revolver that the free

Matts Pinard

Yes.

So our incremental of no The equity. right. exactly guidance that’s assumes midpoint

on a anything retained talked revolver in flow net is we little using a acquisitions north debt. acquisition we’ve that basis, be to X%. now So of addition priced revolver cash would and made the the Right about,

a as in credence anywhere take at is forward and like into can But curve good modeling. you You much a look as the SOFR curve. a would X% your for forward you term put probably low

Bill Crooker

the aren’t term out, the if revolver that different rates we to just given as the balance curve. materially of that And were increases, flatness

Vince Tibone

could of more color loan, a private how on quick, are you rate okay. debt really that just Just some availability besides are do How it’s those Just or the still Whether restrictive? we How – much placement more a note debt? markets of markets term a think private term maybe, the today? much little on get?

Bill Crooker

bank Matts XX I pass off something private XX-year operating can as spend up and and still mean, we in talk the of to markets get terms probably that you be kick years. market. it as the private the If market long just the I’ll anything is But placement on range. I’ll But Yes, placement let functioning and Matts. debt and the it’d market did about then

Matts Pinard

around. would good probably little of a five Credit but and a we’ve had price XX-year to a and bit, spreads tenure If success on pretty the in for following Yes, in come cultivated up market note, today follow We’ve we Vince, the just Right. so placement a go to private were to to the enjoy this is placement. XX-year there. have a lot continues to five we really market flexibility. private range. and a debt quarter bounce the

not care of upsize really bank bond July year. We’re that revolver. of public market. in issuer We took last our of a in We terms the

We our have near-term refinancing. of care significant We of liquidity. amount a took

look bank want So go private the And debt we we we market But the for to would debt that guidance in midpoint our need it’s a does not at markets, any issuance. likely market. harder capital. this to of don’t I placement reiterate do the were assume have if to

Vince Tibone

both. it. Super you helpful. Got Thank

Bill Crooker

Vince. Thanks,

Operator

to Thank back Crooker are any I’d time. questions to Bill turn closing further at you. the There this over like no floor for comment.

Bill Crooker

for joining everybody look to just thanks want I conferences. weekend. at today. call to a upcoming the many of forward And Yes, and We you seeing the great thank have again

Operator

This today’s conference. concludes

for at your time. You may disconnect participation. Thank your you lines this

STAG Industrial (STAG) 16 Feb 232022 Q4 Earnings call transcript