STAG INDUSTRIAL, INC. BOSTON, Jan. 6, 2016 /PRNewswire/ -- STAG Industrial, Inc. (the "Company") (NYSE: STAG), a real estate investment trust (REIT) focused on the acquisition and operation of single-tenant, industrial properties throughout the United States, today announced its acquisition, disposition and leasing activity for the month of December and full year 2015.
Acquisitions
In December, the Company acquired ten buildings consisting of approximately 2.2 million square feet for $108.7 million. The acquired buildings are 93% occupied. The chart below details the December acquisition activity:
DECEMBER 2015 ACQUISITIONS
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Location (CBSA) (1) Date Acquired Square Feet Buildings Purchase Price Weighted Average
($MM) (2) Lease Term (Years)
--- -------- ---------------- ----------------
Milwaukee-Waukesha-West Allis, WI 12/4/2015 241,977 4 $9.9 7.3
Knoxville, TN 12/10/2015 104,000 1 5.4 5.0
Dallas-Fort Worth-Arlington, TX 12/11/2015 164,914 1 7.6 NA
Greenville-Mauldin-Easley, SC 12/11/2015 125,000 1 5.5 4.6
Lancaster, PA 12/17/2015 240,529 1 9.4 2.4
Grand Rapids-Wyoming, MI 12/23/2015 301,317 1 9.4 5.1
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 12/31/2015 1,048,631 1 61.5 5.0
Total/Weighted Average 2,226,368 10 $108.7 4.9
(1)Core based statistical area
(2)Excludes property acquisition costs
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For the quarter ended December 31, 2015, the Company acquired 14 buildings consisting of approximately 3.1 million square feet for $138.5 million. The weighted average estimated cap rate for the buildings acquired in the quarter was 8.7%. Estimated cap rates are calculated by dividing the underwritten net operating income for the first twelve months by the purchase price. The chart below details the acquisition activity for the year ended December 31, 2015:
2015 ACQUISITION ACTIVITY
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Quarter Square Feet Buildings Purchase Weighted Average Lease Term
Price ($MM) (Years)
(1)
------- ----------- --------- ------------ ---------------------------
Q1 1,485,717 5 $97.1 5.7
Q2 1,639,383 12 83.8 6.0
Q3 2,509,084 18 108.3 5.5
Q4 3,057,668 14 138.5 4.9
Total/Weighted Average 8,691,852 49 $427.7 5.4
---------------------- --------- --- ------ ---
(1)Excludes property acquisition costs
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As of January 5, 2016, the Company has entered into contracts to acquire two buildings for $18 million. The Company has also executed non-binding letters of intent to acquire three additional buildings for $20 million.
As of January 5, 2016, the Company's pipeline of potential acquisitions is $1.4 billion across 133 buildings. The pipeline is a point in time measure that includes all of the transactions under consideration by the Company's acquisitions group that have passed the initial screening process. The pipeline also includes transactions under contract and transactions with non-binding LOIs.
The purchase and sale agreements for the properties under contract are subject to satisfaction of closing conditions, and the properties under LOI require the negotiation and execution of definitive purchase and sale agreements. There can be no assurance that any of the properties under contract or LOI will be acquired on the terms anticipated or at all.
Dispositions
In December, the Company sold one building consisting of 270,000 square feet for $3.7 million. For the year ended December 31, 2015, the Company sold six buildings consisting of 808,387 square feet for $22 million. The chart below details the disposition activity for the year ended December 31, 2015:
2015 DISPOSITIONS (1)
Year Square Feet Buildings Net
Proceeds(2)
---- ----------- --------- -----------
Q1 0 0 $0.0
Q2 0 0 0.0
Q3 321,810 2 9.2
Q4 486,577 4 12.8
--- ------- --- ----
Total 808,387 6 $22.0
----- ------- --- -----
(1)Proceeds equal sales price less closing costs
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Leasing
In December, the Company executed three leases totaling 731,585 square feet consisting of 529,785 square feet of new leases and 201,800 square feet of renewal leases. The chart below details the December leasing activity:
DECEMBER 2015 LEASING ACTIVITY
Lease Type Square Feet Base Rent Lease Tenant Total Costs Cash Rent GAAP Rent
$/PSF Commissions Improvements $/PSF Change (1)(3) Change (2)(3)
$/PSF $/PSF
--- -----
New Leases 529,785 $2.72 $0.88 $0.94 $1.82 0.5% 12.6%
Renewal Leases 201,800 3.15 0.48 0.26 0.74 0.6% 14.1%
-------------- ------- ---- ---- ---- ---- --- ----
Total /Weighted Avg New & Renewal 731,585 $2.84 $0.77 $0.76 $1.53 0.5% 13.0%
Temporary Leases 0
---------------- ---
Total Leasing Activity 731,585
---------------------- -------
(1) Cash basis rent growth is a ratio of the change in base rent (excluding straight-line rent adjustments as required by GAAP) of the comparable lease
(2)GAAP basis rent growth is a ratio of the change in base rent (including straight-line rent adjustments as required by GAAP) of the comparable lease
(3)Rent change for new leases where there were no prior comparable leases, due to extended downtime or materially different lease structures are excluded
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For the quarter ended December 31, 2015, the Company executed ten leases for approximately 1.4 million square feet, including 529,785 square feet of new leases, 251,800 square feet of renewal leases, and 657,970 square feet of temporary leases. The chart below details the leasing activity for the quarter ended December 31, 2015:
FOURTH QUARTER 2015 LEASING ACTIVITY
------------------------------------
Lease Type Square Feet Base Rent $/PSF Lease Tenant Total Costs Cash Rent GAAP Rent
Commissions Improvements $/PSF Change (1)(3) Change (2)(3)
$/PSF $/PSF
--- -----
New Leases 529,785 $2.72 $0.88 $0.94 $1.82 0.5% 12.6%
Renewal Leases 251,800 3.22 0.42 0.21 0.63 0.5% 10.9%
-------------- ------- ---- ---- ---- ---- --- ----
Total /Weighted Avg New & Renewal 781,585 $2.88 $0.73 $0.71 $1.44 0.5% 12.0%
Temporary Leases 657,970
---------------- -------
Total Leasing Activity 1,439,555
---------------------- ---------
(1) Cash basis rent growth is a ratio of the change in base rent (excluding straight-line rent adjustments as required by GAAP) of the comparable lease.
(2)GAAP basis rent growth is a ratio of the change in base rent (including straight-line rent adjustments as required by GAAP) of the comparable lease.
(3)Rent change for new leases where there were no prior comparable leases, due to extended downtime or materially different lease structures are excluded.
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For the year ended December 31, 2015, the Company executed 55 leases for approximately 5.7 million square feet, including 1.4 million square feet of new leases, 3.0 million square feet of renewal leases, and 1.4 million square feet of temporary leases. The chart below details the leasing activity for the year ended December 31, 2015:
2015 LEASING ACTIVITY
---------------------
Quarter New Square Renewal Square Temporary Square Total Leasing
Feet Feet Feet Activity Square
Feet
----
Q1 167,200 136,653 245,280 549,133
Q2 385,295 1,346,025 365,620 2,096,940
Q3 357,028 1,215,848 87,900 1,660,776
Q4 529,785 251,800 657,970 1,439,555
Total 1,439,308 2,950,326 1,356,770 5,746,404
----- --------- --------- --------- ---------
Six leases consisting of 806,030 square feet expired in the fourth quarter and the tenant retention rate for these leases was 49.2%. The chart below reflects the tenant retention rate for the year ended December 31, 2015:
2015 RETENTION
--------------
Quarter Expiring Square Retained Square Retention Cash Rent GAAP Rent
Footage Footage Rate (1) Change(1) Change(1)
--- ------- ------- ------- -------- --------
Q1 1,528,723 979,987 64.1% 6.7% 9.6%
Q2 468,169 136,789 29.2% 3.9% 10.0%
Q3 2,135,464 1,931,464 90.4% 3.3% 8.5%
Q4 806,030 396,430 49.2% 0.8% 4.2%
Total /
Weighted
Average 4,938,386 3,444,670 69.8% 4.2% 8.4%
--------- --------- --------- ---- --- ---
(1)Based on square feet retained in the period
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The Company's occupancy rate for the fourth quarter was 95.6%. The chart below reflects the occupancy and total square footage for the year ended December 31, 2015:
2015 OCCUPANCY
--------------
Quarter Number of Buildings Total Square
Footage Occupancy %
------- ------------------- ------------ ----------
Q1 253 48,533,893 94.4%
Q2 265 49,954,019 95.0%
Q3 281 52,141,293 95.7%
Q4 291 54,712,384 95.6%
--- --- ---------- ----
About STAG Industrial, Inc.
STAG Industrial, Inc. is a real estate investment trust (REIT) focused on the acquisition and operation of single-tenant, industrial properties throughout the United States. The Company's portfolio consists of 291 properties in 38 states with approximately 54.7 million rentable square feet.
For additional information, please visit the Company's website at www.stagindustrial.com.
Forward-Looking Statements
This press release, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, are generally identifiable by use of the words "believe," "will," "expect," "intend," "anticipate," "estimate," "should," "project" or similar expressions. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company's control and which could materially affect actual results, performances or achievements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, the risk factors discussed in the Company's annual report on Form 10-K for the year ended December 31, 2014 as updated by the Company's quarterly reports on Form 10-Q. Accordingly, there is no assurance that the Company's expectations will be realized. Except as otherwise required by the federal securities laws, the Company disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
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SOURCE STAG Industrial, Inc.
