BOSTON, July 30, 2024 /PRNewswire/ -- STAG Industrial, Inc. (the "Company") (NYSE:STAG), today announced its financial and operating results for the quarter ended June 30, 2024. "STAG has delivered exceptional operating results through the first half of 2024," said Bill Crooker, President and Chief Executive Officer of the Company. "We will leverage these successful operating results along with our liquidity to drive further growth this year and next." Second Quarter 2024 Highlights Reported $0.33 of net income per basic and diluted common share for the second quarter of 2024, compared to $0.29 of net income per basic and diluted common share for the second quarter of 2023. Reported $59.7 million of net income attributable to common stockholders for the second quarter of 2024, compared to net income attributable to common stockholders of $51.6 million for the second quarter of 2023. Achieved $0.61 of Core FFO per diluted share for the second quarter of 2024, an increase of 8.9% compared to the second quarter of 2023 Core FFO per diluted share of $0.56. Produced Cash NOI of $148.4 million for the second quarter of 2024, an increase of 10.3% compared to the second quarter of 2023 of $134.6 million. Produced Same Store Cash NOI of $138.2 million for the second quarter of 2024, an increase of 6.1% compared to the second quarter of 2023 of $130.3 million. Produced Cash Available for Distribution of $95.1 million for the second quarter of 2024, an increase of 9.1% compared to the second quarter of 2023 of $87.2 million. Acquired ten buildings in the second quarter of 2024, consisting of 2.2 million square feet, for $225.6 million, with a Cash Capitalization Rate of 6.7% and a Straight-Line Capitalization Rate of 7.0%. Sold seven buildings in the second quarter of 2024, consisting of 1.1 million square feet, for $78.2 million. Achieved an Occupancy Rate of 97.1% on the total portfolio and 97.5% on the Operating Portfolio as of June 30, 2024. Commenced Operating Portfolio leases of 3.5 million square feet for the second quarter of 2024, resulting in a Cash Rent Change and Straight-Line Rent Change of 36.8% and 51.8%, respectively. Experienced 79.9% Retention for 3.7 million square feet of leases expiring in the quarter. On June 26, 2024, Moody's Investor Services maintained an investment grade rating of Baa3 for the Company and upgraded the associated outlook from 'Stable' to 'Positive'. As of July 29, 2024, addressed 94.7% of expected 2024 new and renewal leasing, consisting of 12.6 million square feet, achieving Cash Rent Change of 28.9%. Please refer to the Non-GAAP Financial Measures and Other Definitions section at the end of this release for definitions of capitalized terms used in this release. The Company will host a conference call tomorrow, Wednesday, July 31, 2024 at 10:00 a.m. (Eastern Time), to discuss the quarter's results and provide information about acquisitions, operations, capital markets and corporate activities. Details of the call can be found at the end of this release. Key Financial Measures SECOND QUARTER 2024 KEY FINANCIAL MEASURES Three months ended June 30, Six months ended June 30, Metrics 2024 2023 % Change 2024 2023 % Change (in $000s, except per share data) Net income attributable to common stockholders $59,737 $51,553 15.9 % $96,317 $100,966 (4.6) % Net income per common share — basic $0.33 $0.29 13.8 % $0.53 $0.56 (5.4) % Net income per common share — diluted $0.33 $0.29 13.8 % $0.53 $0.56 (5.4) % Cash NOI $148,432 $134,585 10.3 % $293,904 $267,141 10.0 % Same Store Cash NOI (1) $138,193 $130,276 6.1 % $275,791 $258,866 6.5 % Adjusted EBITDAre $138,726 $125,410 10.6 % $273,393 $247,736 10.4 % Core FFO $113,147 $103,497 9.3 % $222,186 $205,081 8.3 % Core FFO per share / unit — basic $0.61 $0.56 8.9 % $1.20 $1.12 7.1 % Core FFO per share / unit — diluted $0.61 $0.56 8.9 % $1.20 $1.12 7.1 % Cash Available for Distribution $95,119 $87,168 9.1 % $193,252 $177,267 9.0 % (1) The Same Store pool accounted for 94.5% of the total portfolio square footage as of June 30, 2024. Definitions of the above-mentioned non-GAAP financial measures, together with reconciliations to net income (loss) in accordance with GAAP, appear at the end of this release. Please also see the Company's supplemental information package for additional disclosure. Acquisition and Disposition Activity For the three months ended June 30, 2024, the Company acquired ten buildings for $225.6 million with an Occupancy Rate of 87.9% upon acquisition. The chart below details the acquisition activity for the quarter: SECOND QUARTER 2024 ACQUISITION ACTIVITY Market Date Acquired Square Feet Buildings Purchase Price ($000s) W.A. Lease Term (Years) Cash Capitalization Rate Straight-Line Capitalization Rate Milwaukee, WI 4/8/2024 150,002 1 $16,062 5.1 Portland, OR 4/15/2024 99,136 1 17,058 3.6 Louisville, IN 4/16/2024 592,800 1 52,352 4.7 El Paso, TX 6/10/2024 254,103 1 32,182 — Chicago, IL 6/24/2024 947,436 5 87,560 4.1 Columbus, OH 6/26/2024 150,207 1 20,408 4.7 Total / weighted average 2,193,684 10 $225,622 4.4 6.7 % 7.0 % The chart below details the 2024 acquisition activity and pipeline through July 29, 2024: 2024 ACQUISITION AND PIPELINE DETAIL Square Feet Buildings Purchase Price ($000s) W.A. Lease Term (Years) Cash Capitalization Rate Straight-Line Capitalization Rate Q1 697,500 1 $50,073 6.8 6.1 % 6.8 % Q2 2,193,684 10 225,622 4.4 6.7 % 7.0 % Total / weighted average 2,891,184 11 $275,695 5.0 6.6 % 6.9 % Pipeline 27.0 million 162 $3.7 billion Additionally, in the second quarter, the Company acquired one vacant land parcel for $8.2 million. This asset is excluded from the acquisition activity statistics above. The chart below details the disposition activity for the six months ended June 30, 2024: 2024 DISPOSITION ACTIVITY Square Feet Buildings Sale Price ($000s) Q1 — — $— Q2 1,106,217 7 78,196 Total           1,106,217 7 $78,196 Leasing Activity The chart below details the leasing activity for leases commenced during the three months ended June 30, 2024: SECOND QUARTER 2024 OPERATING PORTFOLIO LEASING ACTIVITY Lease Type Square Feet Lease Count W.A. Lease Term (Years) Cash Base Rent $/SF SL Base Rent $/SF Lease Commissions $/SF Tenant Improvements $/SF Cash Rent Change  SL Rent Change Retention New Leases 559,053 4 6.6 $6.48 $6.98 $2.98 $0.96 51.2 % 72.6 % Renewal Leases 2,975,312 22 5.1 $6.25 $6.57 $1.22 $0.29 34.3 % 48.3 % 79.9 % Total / weighted average 3,534,365 26 5.4 $6.29 $6.63 $1.50 $0.40 36.8 % 51.8 % The chart below details the leasing activity for leases commenced during the six months ended June 30, 2024: 2024 YEAR TO DATE OPERATING PORTFOLIO LEASING ACTIVITY Lease Type Square Feet Lease Count W.A. Lease Term (Years) Cash Base Rent $/SF SL Base Rent $/SF Lease Commissions $/SF Tenant Improvements $/SF Cash Rent Change  SL Rent Change Retention New Leases 1,287,983 9 5.1 $5.85 $6.15 $1.86 $0.63 24.7 % 36.9 % Renewal Leases 6,527,325 46 4.7 $5.97 $6.28 $0.97 $0.25 35.3 % 49.7 % 82.2 % Total / weighted average 7,815,308 55 4.8 $5.95 $6.26 $1.12 $0.31 33.4 % 47.4 % Additionally, for the three and six months ended June 30, 2024, leases commenced totaling 263,831 and 390,772 square feet, respectively, related to Value Add assets and first generation leasing. These are excluded from the Operating Portfolio statistics above. As of July 29, 2024, addressed 94.7% of expected 2024 new and renewal leasing, consisting of 12.6 million square feet, achieving Cash Rent Change of 28.9%. Capital Markets Activity In the second quarter of 2024, the Company sold 227,146 shares on a forward basis under the ATM common stock offering program at a price of $39.10 per share, or $8.9 million. The Company does not initially receive any proceeds from the sale of shares on a forward basis and has until the end of the first quarter in 2025 to settle the forward contract. The Company has total outstanding net proceeds of $72.1 million available as of June 30, 2024. On May 28, 2024, the Company funded a note purchase agreement to issue $450 million of fixed rate senior unsecured notes in a private placement offering with a weighted average fixed interest rate of 6.17%. The transaction consisted of $175 million of 6.05% notes with a five-year term maturing on May 28, 2029; $125 million of 6.17% notes with a seven-year term maturing on May 28, 2031; and $150 million of 6.30% notes with a ten-year term maturing on May 28, 2034. On June 26, 2024, Moody's Investor Services maintained an investment grade rating of Baa3 for the Company and upgraded the associated outlook from 'Stable' to 'Positive'. Moody's assigned a first-time rating of Baa3 in 2018. As of June 30, 2024, Net Debt to Annualized Run Rate Adjusted EBITDAre was 5.0x and Liquidity was $902.9 million. Conference Call The Company will host a conference call tomorrow, Wednesday, July 31, 2024, at 10:00 a.m. (Eastern Time) to discuss the quarter's results.  The call can be accessed live over the phone toll-free by dialing (877) 407-4018, or for international callers, (201) 689-8471.  A replay will be available shortly after the call and can be accessed by dialing (844) 512-2921, or for international callers, (412) 317-6671.  The passcode for the replay is 13747218. Interested parties may also listen to a simultaneous webcast of the conference call by visiting the Investor Relations section of the Company's website at www.stagindustrial.com, or by clicking on the following link: http://ir.stagindustrial.com/QuarterlyResults  Supplemental Schedule The Company has provided a supplemental information package with additional disclosure and financial information on its website (www.stagindustrial.com) under the "Quarterly Results" tab in the Investor Relations section. CONSOLIDATED BALANCE SHEETS STAG Industrial, Inc. (unaudited, in thousands, except share data)  June 30, 2024 December 31, 2023 Assets