STAG Industrial, Inc. Announces Strong Acquisition And Leasing Results For The Third Quarter Of 2012
The Company continued its acquisition and leasing progress, completing approximately $101 million of additional acquisitions and leasing 728,000 square feet
BOSTON, Oct. 1, 2012 /PRNewswire/ -- STAG Industrial, Inc. (the "Company") (NYSE: STAG), a company focused on the acquisition, ownership and management of single-tenant industrial properties throughout the United States, today announced its acquisition and leasing results for the third quarter of 2012.
"It was another strong quarter for the Company. We completed a second follow-on equity offering in August and recently closed a new $350 million, unsecured revolver and term loan. These added to our financial strength and positioned us to complete the significant acquisition volume we have under agreement to close through the first few weeks of the fourth quarter and beyond," said Ben Butcher, the Company's CEO.
The Company announces the acquisition last week of two industrial buildings containing a total of 405,858 square feet for approximately $14.3 million. The acquired properties consist of a light manufacturing and distribution facility located near Lynchburg, Virginia and a warehouse and distribution facility located near Chicago, Illinois. Both properties are 100% leased with an average lease term of 5 years.
In total, the Company acquired thirteen fully leased industrial facilities consisting of approximately 3.1 million square feet in the third quarter. On a square foot basis, these acquisitions increase the Company's asset base by over 15%. These properties were purchased at an average cap rate of 9+% based on in-place income for a total cost of approximately $101.3 million. The quarter's acquisitions bring the Company's total acquisition volume for 2012 to approximately $215 million. Since its IPO in April 2011, the Company's total acquisition volume is approximately $341 million, increasing the Company's asset base by over 72% on a square foot basis.
Including the previously announced STAG II portfolio contract, the Company has entered into contracts to acquire thirty-six additional properties for a combined purchase price of approximately $163.4 million, subject to various closing conditions. These conditions have not yet been satisfied so there can be no assurance that these transactions will be consummated.
The Company also announced that it has signed leases totaling 728,024 square feet in the third quarter of 2012. This leasing activity consists of approximately 73,881 square feet of new or expansion leases and 654,143 square feet of renewal leases. The year to date tenant retention rate for the leases expiring through September 2012 was 88%. The Company's occupancy rate for the third quarter increased to 96.3% from 95.7% at the end of the second quarter of 2012.
About STAG Industrial, Inc.
STAG Industrial, Inc. is a full-service real estate company focused on the acquisition, ownership and management of single-tenant industrial properties throughout the United States. STAG's portfolio consists of 134 properties in 30 states with approximately 23.5 million rentable square feet.
For additional information, please visit the Company's website at www.stagindustrial.com.
This press release, together with other statements and information publicly disseminated by STAG Industrial, Inc. (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, 2011, 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.
SOURCE STAG Industrial, Inc.
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