Earnings call transcript Q2 2023

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Operator

Greetings and welcome to the STAG Industrial Second Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Steve Xiarhos, Associate Investor Relations. Thank you, sir.

You may begin.

Steve Xiarhos

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

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

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

related today. uncertainties and encourage contained review matters differ website. acquisition that rates are same-store and statements the risks listeners of discussed may non-GAAP from prospects, with leasing economic actual address in subject FFO, on that the We other matters. collections, package company’s statements and in contained company’s include other of and SEC Forward-looking supplemental and statements and industry to trends reconciliations cause these information results definitions those to core available retention and filings forecast Examples measures the forward-looking forward-looking to detailed all discussion guidance, the to the more rent disposition of the volumes, G&A, NOI,

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

answer Pinard, our us EVP will of Chief Officer. Financial Officer today’s specific Kimball, Steve Mike Estate the Investment Bill questions and today On to focus. and Chase, Matts Real call, are is hear with from our here Executive you area Crooker, to available Chief Officer; Also of our Operations Chief

call now turn the I to over Bill. will

Bill Crooker

earnings welcome the quarter for morning, call STAG and everybody Thank Industrial. Good to you, Steve. second

discuss our you with have quarter. today results the for happy we as are to We us

seen quarter. unique industrial onshoring and produce benefiting the a sector The spreads record e-commerce tailwinds the consumption. including to leasing as our method continues and by portfolio secular of near penetration continued exceptional of industry, is from results our the to as Our this

crept Vacancy nationally. rates up have to X.X% approximately

outfitting There X and we as supply has finance months evaluate strong, which industrial as XX time constructed outlays, highs corporate off Tenants chain are was ago, taking tenants are normal. such systems. examples recently estate more come XXX,XXX remains equipment weighing the pandemic enter automation of for real footprints, space the associated historically more material of demand demand there space. large feet. to with needs. it against new While of footprint cash their to square handling include buildings buildings for generally These are cost large north items strong their

with is $XX environment, by avoided by million million contracting firms In to manage chains. to supply being $XXX today’s third-party investment new tenants large to logistics spaces the outfit

On the classified supply of side, square to level These deliveries with this sizes year, big with half is This conditions. box of deliveries rate be in to are expected national a the deliveries still approximately above indicative result of stock X.X% industrial vacancy as strong of feet. buildings, nearly are end. at of or expected year X% XXX,XXX overall those vacancy by

XX% in lower digits in push Development to since however, in of level are of should vacancy the coupled to expect half development rent single the continued XXXX. be portfolio approximately high of mid- growth demand, strong year. lower continue We down this rates our the This starts, with XXXX. end to back starts market

to proud and are spreads for high we portfolio, at STAG. leasing watermarks our to Moving report cash GAAP

we opportunities and year, the expect uptick XXXX the to acquisition the spreads slow at XX, in to July of After accomplish XX.X% recently have in XX.X%. cash have of markets we slowly as of development capital As seen achieved normalize. leasing the we an start

the a lock has look opportunities risks in pushing a of and see developers been of foregoing upside their completed One ranging sites, opportunities potential focusing some in vacant leasing can development exposure. We capital contracts portion funding STAG with area upside where exchange are certainty. on land that is developments developers number this in for present spec smaller on negotiated favorable as thereby exchange supply positions. leasing to approval buildings. construction of for evident construction demise the and been derisk demand. to and full very There entitled to has Financing, limited leasing with to spaces purchase be profits risk growing align today side. Also, with from These selective that projects

previously transaction several although pre-pandemic XXXX, can year. has resulted towards activity deal to half the clear. sector. has for this and where of side, back expectation in restarted. during transactions activity levels This has can cost sellers have the period volatile QX seen of to be deal environment. This recent begun recent capital during acquisition of of macro in estate, the achievable bid-ask of the to buyers current an reach in given unlikely prices strength level capital. the markets. Buyers closing industrial underlying calendar marketing was greater portfolios fundamentals, the the narrow between attractiveness available in interest that in The the spread and now industrial market supports are seen absent capital large in an into estate, of them placed Sellers The On their ongoing and our uptick and increased flow by begin real in of case further acquisition sparring not to XXXX understand clarity be rate real something to in that

in square consisted a X line the for totaled $XX.X In volume STAG quarter rates million. foot located an and submarket straight top functional and of nation’s represented acquire cash of to cap second with respectively. of acquisition stabilized X.X% X.X% warehouse asset in one Jersey acquisition I-XXX This acquired buildings XXX,XXX the Our opportunity This April, New million. low distribution for Central $XX.X coverage, of markets. Exit XX facility the

the fully XXX,XXX $XX in in of occupied submarket a acquired STAG Carolina, foot square May, Greensville North In facility million. airport

opportunity term. XX% or larger to end at building. to for the moving their is tenant As upon of closing, the the this a a roll-up leased facility building of release a years of realize have will greater to is X.X the who STAG

specs aerospace plant to plant, the supporting base recent tenant manufacturing the of building’s the openings adjacent capture the growing suited an these EV With leave the modern and well in location plants. Toyota airport it market and battery

to quarter acquired we Subsequent for million. buildings $XX.X end, X

X the On we sold aggregate quarter assets. the buildings proceeds for million. buildings side, non-core in these were disposition of of $XX.X X

other located a rate cash the The was Kentucky, Louisville, a dispositions Year-to-date, on resulting as reflecting million cap X the rate. and proceeds company’s of buildings aggregate cash were $XX.X cap in in X.X% opportunistic X.X%. portfolio,

a the to markets year. to Industrial and Finally, evolution the growth recognize I of announce have to added was the the May of This XXX MidCap testament the am how begun is excited STAG in that S&P platform. of to company the this

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

Matts Pinard

Cash you, quarter and to year. Thank of equal last quarter, for quarter the Core for good the morning FFO Bill share everyone. second million. totaled second the distribution for per $X.XX available was $XX.X

of dividends have adjusted Liquidity cash XX. end flow June equal the after We through million. this X.Xx. stands Leverage to at run-rate range debt low EBITDA near million year retained $XXX to of is paid with guidance annualized $XX.X net our

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

X.X% for credit quarter XX.X% same-store backfills. when cash basis X.X% leasing the of We quarter. have spreads was non-incurred with adjusted We we and year-to-date. the Retention XX% achieved year. quarter of during points expect for growth NOI for XX.X% Year-to-date, experienced approximately the of immediate cash X and the second for loss

proceeds ATM under issued market activity, X we to of our $XX.X of price share average shares in approximately Moving gross program resulting million million. a gross capital at $XX.XX

we our pipeline. equity to As acquisitions equity and to development $XX.X proceeds today, of our of fund million The have forward discretion. fund match used be will available at

XX.X midpoint. terms points for to basis We range was by change basis in X% loss increased we XX updates. made to retention the basis expected XX reduction guidance, a In cash year guidance same-store the points at the from and driven points. modest our X.XX% credit of increased This of progress improved and following to We a XX% million, on signed $XXX debt adjusted increase annualized between EBITDA today, of million. expect of run-rate be and driven to guidance by our to and our to-date. range midpoint to our of based net the Xx a $XX disposition leases updated to We an still range X.Xx. We retention $XXX XX% through million of or

to back now over turn Bill. it will I

Bill Crooker

this you, my Matts. express excited today the am sits I to gratitude their goals must effort where Thank for quarter. and about in company our ahead. I achieving team the and dedication our road

results continue have operational XXXX. strong extremely and forecast We to for

beyond. ample are that conservative to present benefiting the remainder a of balance and liquidity. advantage themselves XXXX the through These will We from sheet, opportunities of us also allow take with factors

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

Operator

comes question Mailman. first with Our Thank proceed you. [Operator question. Instructions] Craig Please from your

Craig Mailman

guys. morning, Good

of really now a market as have stable during little your what some rent LA growth footprint, a your just that broader of fundamental growth markets. bit mind are benefit a kind rate portfolio, am maybe differentiate are some Just But than and at guys kind from portfolio of that a rent sort you sequential in you are growth, from and to kind curious, recently, kind kind of been a little you more reality? I conditions especially rent your other of and for of people coming and of front growth of on guys maybe some of markets maybe of back have that to coastal top of the bit investors, of portfolio, more kind seeing your sequential COVID peers look kind your that exposed the curious,

Bill Crooker

for Thanks Craig. question. Hey, Yes. the

at mid of year, single-digits Our it quarter. to market that the this this We for again last affirmed forecast and rent quarter portfolio. affirmed high growth the were beginning

stable El Last benefiting some pretty been markets. our has near-shoring of Paso we portfolio. growth mentioned the from in rent market So in quarter,

in We’re seeing go markets. some Southeast the site the Midwest to those start pockets U.S., in mega up Texas, investments

that some markets driver think we our of will as demand be for well. a So

coming logistics market. demand We’re some seeing also tenants the build supply continuing up in our from chain to

reasons, stable markets. we’ve growth in market So our and pretty strong seen rent for all those

Craig Mailman

a of Do feel that amount do are kind reacceleration make just could the in markets market? mentioned would XPLs your almost is pent-up the using the maybe the big demand in of you something margin? if feel else so a assurances Or they substantial an incremental in outlays your absorption the that I Fed cap rents it maybe like of on potentially on in pivots gives you you you there upward mean hesitancy is of the in people or be to pressure on see kind more it economy and near-term. tenants like

Bill Crooker

I as lot we and could need certainly, that, in Yes. could to prepared is a box I an is I a that outcome. very Right play be of contribute now, but demand slow. there factors that’s still mean to figure would mentioned certainly that scenario out. mean, out, the big remarks, that

lot We’re is seeing – a of XPLs consistent with as demand which quarter. from last

really dynamic I and happy size. markets supply-demand portfolio overall, our we’re our is for in So the mean, our where box

As is of that the half feet coming XXX,XXX a reminder, is and feet XXX,XXX lease square average our box above. online supply the that’s or demand about – today square size supply big supply,

Craig Mailman

I And then more if could in. one slip

kind hit You for acquisitions on what like – million the does made about for to if basis the that the that post mean what activity $XX an of ‘XX the to run looked and annualized talked capital a I all net equity recycling due you your of maybe within guys guidance, kind availability. kind earnings guys of basis quarter, accretion end versus rate? translates dispose your on and a the your from you in quarter the

Bill Crooker

Yes. acquisition is I mean guidance back-end our for earnings this year, weighted.

should XXXX are in not happening on later to large quicker speak to contributor not major contribution The we increased core and a disposition factoring FFO, acquisitions. will in But call. We a a our Dispositions significantly core this core this acquisition year FFO year, we’re guidance. FFO. the So little for that year. obviously a from about benefit

Operator

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

Eric Borden

what Or close on expect expand back separate the color on you the the development guidance? you and those guys. maybe that the a just the to they seeing quantify opportunities Good then hoping And in opportunities today you’re are are could in of what I kind acquisition year? morning. acquisition included just clarifier too? that, appreciate of and is, pipeline potential half Hey, in

Bill Crooker

sometimes developments question, really incremental We’ve But Eric. our really any are on develop. you. we’re to had would great the in seeing, they past XX we’re The acquisition opportunities do our XX, Good development months Yes. excited developments, success incremental developments to about. Thank XX to be time take from guidance, anywhere that. not

a over be will those for of capital period of time. deployment the So

developer We’re downside will return partnering land vacant the seeing development are risk developer to that newly for opportunities, as I providing transaction. constructed run buildings the that capital said, the in with and entitled to that for and from sites taking to upside in

guidance of is the not So those pipeline to everyone we’re as seeing point, there to opportunities, a we will we opportunities be let on this lot close know. enough us sure for on we now not But happens, a certainty etcetera. that. those give give in sure At be when out to and deployment the guidance schedule, as in will that of profit be the yields, completed, margins, lay developments will capital

Eric Borden

of should you the maybe of about the the about are kind What’s forward how source the left million just year, the how of just remainder we $XX debt on today? most of the price attractive then think your side, versus And the cost helpful. capital have mix mix remainder And you funding through That’s for thinking of of share the year? given today, Okay. funding of dispositions. and

Matts Pinard

Hey, this good morning, Matt. Eric, is

right. You’re

So forward roughly million. we on unfunded proceeds have $XX the

April. we’re hit We’re as at guidance an, fund just going improved to has the the ongoing capital leverage beginning mentioned. of since issued our our we part amount still initial we’ve the operate materially to is being place. allow of And to without set market of more volume our our to leverage if midpoint the Bill modest that the But any future the talked us equity high were use The operate those about, range. great developments to ranges acquisition this likely closer middle target net equity operate With be range. year acquisitions in to funding, of the to at it’s equity concept additional of that likely of end no able would going in

bottom range As increased of Bill our end slightly disposition mentioned, we the guidance.

you’re source, incremental proceeds. from funding see, expect I’d a we to more say, So going disposition

Operator

proceed Vince with from Green comes question Street. Tibone your next Our Please question. with

Vince Tibone

acquisitions Hi, cash in rates cap the good the on morning. quarter. to clarify I just wanted the

this the shorter Or rate X.X% given especially NOI? property? the that current WAULT of mark-to-market Carolina cap big kind deals, incorporate run this does Just rate highlighted, reflect you in does

Bill Crooker

on it’s depends vacate, It known if a Vince. Yes.

is other vacate, stabilized. of one would would known the that a not One so known in be that vacate, And is be the so place. deals the a

Vince Tibone

Got it.

lower to than on a the the basically, is yield X So year $XX these million, just going be to clarify. little

Bill Crooker

lower. slightly Yes,

Vince Tibone

question kind And really a Yes. Got being the just risk priced today. just on is and it. how then of kind development of opportunities leasing

that were how buying you if that to property the So you buy could going core development you a by completed think vacant, do just versus leasing much additional stabilized achieve building today? yield

Bill Crooker

we’re And depends call again, circa on the side demand, the basis smaller on on suite medium-sized boxes. we’re we’re points – on the the But generally, suite but depending those. market. sizes. It supply, of it, size it, the building – call times, It at a XX anywhere, opportunities looking depends is, lot depending boxes development

meets two to them to demise We’re demand. the three planning the into suites, of build those teeth to so really

Operator

Please Evercore with Khanal your Our question with comes from proceed ISI. next Samir question.

Samir Khanal

everyone. unchanged. the Matt, but kept comments I lot of is the you here, around morning, mean good a Hey, guidance there positivity

trying as So to kind still considering August you I’m wide out of in a just gap pretty here. you’re figure

end wondering sort the to what’s maybe Maybe talk low holding So back Thanks. of you you here. factors, guidance to here? get of the about

Matts Pinard

Yes.

and for proceeds. disposition there mismatch definitely timing Look, increase redeploying our FFO. core an in To between your uncertainty asset be no is view can did selling our So here increase in just guidance. guidance, have those sit macro change there about as talk still on year. July, same-store influences We the volume we we expectation a modest to our in look the point, that did a

really growth material earnings to are As external Bill not this year. mentioned, weighted. back-end The a acquisitions to driver is expected be

confident something terms And price. lower, comes we’re credit market guidance, in on midpoint. the with front, very extent and low higher end extent tipped macro of the really But we the etcetera, the flowed In loss capital share towards end. the dip kind the of to of the that would picture the to into

Bill Crooker

Yes.

you’d mean us there range issues that of we certainly the to but doesn’t portfolio, some think low I add have out anticipating, it. in macro to we’re want which not put to the a have some real of guidance, on into end I credit material a push don’t to to to event uncertainty Just factor some that, significant guidance that

Operator

Our next question Heck from Fargo. Blaine comes your question. proceed with Wells with Please

Blaine Heck

Great. Thanks.

how of spread cost the talk some overall about on spread of just following your about investment. on equity spread about your between year-to-date? what’s executed Can thinking you cost a and and you debt Just capital we up return longer-term? questions. that the of required today and you’re there that the I thinking earlier that the is guys should you’ve guess, target on And over the deals be

Matts Pinard

is Hey, capital. the I our with can Matt. start Blaine, this cost of

So let’s start with that.

were and X So out if be long-term private tenure, something placement If the probably been area, and of in likely We today, mix XX-year we’ve go originate the we cap rates notably debt, both would ago. successful we we’re those. were issue to would X.XX% there. the of a very couple questions that between market, in we a go in just to below to market discussed

where uses because proceeds. equity of we accretive terms we’re equity, should for comfortable we had In the those with

compared appropriate in increases but in As uses we been for XXXX. to emphasize the we what like sit here to has we really want today, particularly right? activity, additional acquisition There I look need would equity, modest modest,

is. like we here today sheet we where So sit the balance

opportunities. We’re looking at the

of opportunities stabilized very versus debt, flowing cost think I of we’re cognizant but We’re and increase, yield hoping the the through. the that’s

Bill Crooker

WAULT, really Blaine, assets those lot add to the can are we of low what we like then markets as cap opportunities both two side, that opportunity well. to And going some of about we’re I about then even our close cash that X-year WAULT these the are acquisitions We some to returns. X-ish, value stronger it, of six When add this X% value to of we think a in at feel you to as And on buildings, we a those well. closing call on few on range. on you look can higher these mean And development are subsequent we those when the opportunities Yes. excited generate executed just markets. quarter,

where capital for uses accretive incremental certainly and opportunities great we raise can So today.

Blaine Heck

Alright. That’s really helpful.

Second any have the those guys sale sold or or or Any opportunistic? themes is – might you just common there you rest that exit question, traits specific the you’re or for are you trying to avoid the that kind of markets looking to in in it properties just year? are guys targeting industries of more be

Bill Crooker

Yes.

the not right. On really, industries,

really on focused We estate. are the real

So, real deal of good With dispositions. tenants. it’s to piece with was we estate, there of a a will the respect couple the dispositions, opportunistic

markets mid-Xs a just the year-to-date, a think in of us. of Blaine, for are like are was was sale our the in CBRE are One Tier to example of feel I for on not that own good. a tenant best And cap building. or either cusp pretty the locations maybe we just the itself, disposition which we this lot who long-term X rate, properties, to environment the wanted those

yield for pretty opportunity of quality realize great the a portfolio. the overall good was while it improving us So, a to

Blaine Heck

Thanks guys.

Bill Crooker

Thanks.

Operator

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

Camille Bonnel

your this leasing up made occupancy the and in to to in you you lower talk year, improve. trends on factoring Clearly, even retention, significant Can your progress downtime portfolio? looks Hello. have

half So, the the can of detract this a if just from trajectory trying in year? second to anything sense get

Bill Crooker

not Yes. is mean changes. seeing you just bit, in What not there. up a a tenants changes – seeing little are are longer decisions. change seeing make basically downtime material flat or little any not we taking a just we are bit perspective, to material I but From it’s

time in space those last bit taking well they that in outlook they of space, part making of to due commitment year leasing long-term advance, little the is XPL capital part are building the economy, space the themselves were a on the in to a now utilize decisions, advance, So, decision a the putting the their to and or that’s versus just due network. making either weighing more in like go year to and

rent, concessions rumblings rents downtime a material in pretty from a little flat perspective, a up free a So, TIs, from perspective, the nothing are from hearing we free and on bit. those market are a that

in We that our are seeing portfolio. not

in seeing it’s consistent lease overall, not pretty are We that it with so been. our has what proposals,

Camille Bonnel

the very looks recent transaction more the have changes and now what’s just across on the a it That’s line like any seen market, around no economy. view interest get changes are the active, driving and you weeks? And despite helpful. deals from bigger rate you what’s question appetite on And buyers given around your to in sellers starting real picture questions in

Bill Crooker

What, helpful I think that been in respect. time has

volatility the rates has think I interest down coming helped. of

rates. sellers So, generates stable understand really that now they of the way, to stabilization their And when the another capital say know assets. interest that, where let’s – they of trade willing And is. are their cost where

confidence rates done. you have know had value had When the the sellers seeing of that’s that give a There that’s the really or at. stabilization, two come more we the little are the over those the the of And have think with to are well. between more And A got as portfolio to spread buyers just sellers fuel market. a starting market And what’s couple like interest seeing valued transaction sides don’t what’s their and both deals comfortable today rapid get in on done. big are deals of properties, now what equation So, down. one that market. we past the is couple why years, you people and right I rise bid-ask are you of of properties

Operator

from with question with Thillman proceed Our Baird. next Nick Please question. comes your

Nick Thillman

of like where Just get sense spreads forward? do little on as those are ‘XX you coming books a now in? a guys. mean to like of of leasing early have going kind here. trying with any in touching I we morning Good kind XX% Maybe of of same-store sustainable Hey. into are performance out here ‘XX, indication have a we the looking

Bill Crooker

am Jersey. you leasing know say the the dynamic answer supply New But don’t how impact balanced. fits supply to next that we I markets our of starts back our continues being are today. really development to significantly have supply-demand We that’s I buildings markets on the in we to ‘XX We starts half We same It’s this couple those Nick, year, – will of How down be like year. call. pretty going portfolio roll. measure a said, pretty not spreads. This are where roll sits in going of submarkets. last rolling to assets had overall, sits. the ‘XX. it like Southern to with our said through impact and comfortable had an El year-over-year. That’s We much have. how hard some But the that But Paso portfolio really going

still the same-store I we year. we doubled still leasing plus still same-store, X% credit and credit some think loss, This and no range some had loss, we year, if average we that We the in had basis you had had points had in last same-store. last gains spreads. the We were look we are loss. X% leasing budgeting credit occupancy are loss. half same-store of spreads, XX you This are in at occupancy budgeting we year year, and

range same-store So, period of envelope, to hard of think a I back sustainable for time. the kind we of a this are think it’s in not you

Nick Thillman

acquisitions around a seems helpful. third XX,XXX smaller square little That’s though far, looking like at as the bit quarter it then thus feet. builds, maybe maybe And more

more that are a on So, the into is or this demand, what of just seeing transact is market kind you today? of meet kind this shift of

Bill Crooker

we transact to it’s less is on buildings. because today. shorter market seeing for it are what the book result if us way of we Part buy of bigger willing I bigger paying mean a in the are But going vault to has in certainly it market, that the building,

appropriate at not vaults market think large won’t I know the buildings are you those looking the they So, they because for. seeing transact on yield with are they sellers put shorter

and on part think I of mix given it the is So, of a part terms it what’s change market pricing dynamics. is just of market in

Operator

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

Michael Carroll

I number your the are mean are wanted don’t lease you in is to know, Thanks. XXXX, on this of large you year, talking the some comments, about if blocks XXXX that larger at there Yes. space. I earlier blocks expirations. or to Bill, looking of know, slowdown mean the I follow-up year out how mix I few expiring a next I is compared past years? or in

Bill Crooker

What in demand, you number use square can and what pin we large, we is are in the and seeing a to what as put slowdown use. is you XXX,XXX want feet above

next or even have we nothing anything terms of this In feet We year, have rolling. square feet or XXX,XXX don’t rolling square XXX,XXX above above that’s next year.

happening size remind is next in average our is there that’s to just you, year. lease nothing square feet. So, for the XXX,XXX And submarkets, us, what’s abnormal demand so meets rolling our

meets lot So, in it market. a that’s demand the of the

Michael Carroll

Thanks. Great. Okay.

Bill Crooker

Michael. Thanks

Operator

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

Mike Mueller

to acquisitions cap, market pipeline, want relative a be just can I total large either, dollars relative sense am annual Hi. guidelines there. you development Yes. curious deployed versus your or to on program that as you to how say, give the some to us

Bill Crooker

still early Mike. Yes. days, It’s

As little north we we lay there, of to threshold out enterprise we that. to in contract get some a but we a the give sector more or of XX% close of others some of and schedule these, these under have we a or more got on start will go bit a out thresholds. the cap putting are I value have of before know ways

of will given endeavor for we us. a us, of these, But it’s certainly that, than it newer close be lower as more guidance. For that just will provide we some

Mike Mueller

Okay. Thank you.

Bill Crooker

Thank you.

Operator

next question. Bill from Our comes with Please your proceed Raymond Instructions] question with James. Crow [Operator

Bill Crow

Hi. Bill. Hey morning Good guys.

starts development quoted XX%. You down

I and think the just we development pause? really reduction that is It’s others headcount at selling a longer in about and or duration whether slowing are be I entitled might I that curious am evidence strong, seeing seeing are are builders XX%. unique faster just a or dramatically. talked really convergent land down have you nature, development you this fundamentals see mean pace. cutting really,

everybody what’s the So, take lending going soon as recover, they markets the your in are as on just or on financial sidelines, markets, to the jump that?

Bill Crooker

Yes. question. It’s a really good

We mean are today. partnering we with certainly market the are different things in developers. of seeing a some lot I

seeing have happen. going are the supply to market. sites pretty for The land what some developers I again, that I to mentioned, on think a wave of the that interest on entitled you rates we As need land, can starts come sitting merchant are sit in are land significant on decrease

I think issue the really interest capital them are it’s markets developers. great, putting The that’s markets the debt really the big fundamentals on are rates the and for that’s merchant been sidelines. but a The great.

seen, close to they whatnot much if it I I cutting or haven’t not I see are So, there. – how headcount am to guess

think what that’s and portfolio to de-risk are they do is trying folks. of where some these I can, we are much partner looking their they with to as as

Bill Crow

Okay.

think really interesting development perspective. it’s I time a Bill. from Thanks

Bill Crooker

Yes. Thanks Bill.

Operator

Bill this would floor There to are questions further for to like back closing comments. time. over I Crooker now turn the no at

Bill Crooker

you this look Thank and support, to questions morning. We all the for forward you you. call all talking appreciate we to attending your soon. Thank the and appreciate

Operator

This teleconference. concludes today’s

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

STAG Industrial (STAG) 27 Jul 232023 Q2 Earnings call transcript