Stag Industrial Reports Largest Acquisition Volume in its History: 21 Buildings Totaling 4.6 Million SF

BOSTON–STAG Industrial, Inc., a Boston-based real estate investment trust focused on the acquisition and operation of single-tenant, industrial properties throughout the United States, said that its acquisition volume during the second quarter of this year was the largest in STAG’s history.

“The second quarter represented the largest acquisition volume in STAG’s history,” said Ben Butcher, Chief Executive Officer of the Company.  “This acquisition volume, coupled with our 8% per share growth, while simultaneously deleveraging the balance sheet has positioned the Company very well heading into the second half of 2017.”

Ben Butcher

STAG acquired 21 buildings in the second quarter of 2017, consisting of 4.6 million square feet, for $285.6 million with a weighted average Capitalization Rate of 7.2 percent.

Butcher’s announcement was made in the company’s second quarter report. Here are second quarter 2017 highlights:

  • Reported $0.01 of net loss per basic and diluted share for the second quarter of 2017, as compared to $0.20 of net loss per basic and diluted share for the second quarter of 2016, a decrease in net loss of 95.0%. Reported $1.1 million of net loss attributable to common stockholders for the second quarter of 2017 compared to net loss attributable to common stockholders of $13.3 million for the second quarter of 2016, a decrease in net loss of 91.6%.
  • Achieved $0.41 of Core FFO per diluted share for the second quarter of 2017, an increase of 7.9% compared to the second quarter of 2016 of $0.38. Generated Core FFO of $38.1 million compared to $27.2 million for the second quarter of 2016, an increase of 40.1%.
  • Generated Cash NOI of $58.0 million compared to $49.0 million for the second quarter of 2016, an increase of 18.3%. For the six months ended June 30, 2017, Cash NOI increased 16.3% in the aggregate compared to the same period last year.
  • Acquired 21 buildings in the second quarter of 2017, consisting of 4.6 million square feet, for $285.6 million with a weighted average Capitalization Rate of 7.2%.
  • Sold three buildings in the second quarter of 2017, consisting of 134,900 square feet for $6.5 million.
  • Achieved occupancy of 94.0% on the total portfolio and 94.8% on the Operating Portfolio as of June 30, 2017.
  • Executed Operating Portfolio leases for 3.3 million square feet for the second quarter of 2017. Experienced a cash rent change and GAAP Rent Change of (2.7)% and 6.4%, respectively, for the quarter’s Operating Portfolio leasing activity.
  • Experienced 60.2% Retention for 1.8 million square feet of leases expiring in the quarter. Experienced a cash rent change and GAAP Rent Change of (1.3)% and 2.2%, respectively, for these renewals.
  • Raised gross proceeds of $205.8 million of equity through the Company’s at-the-market offering (“ATM”) program for the second quarter of 2017. Subsequent to quarter end and through August 1, 2017, raised gross proceeds of $21.3 million through the ATM program.
  • Subsequent to quarter end, originated a new five and a half year, $150 million term loan and fully repaid $88 million of secured debt.

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