STAG Industrial : First Quarter 2024 Supplemental Information (Not Combined)

SUPPLEMENTAL INFORMATION

UNAUDITED FIRST QUARTER 2024

Forward-Looking Statements

This supplemental information package 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. STAG Industrial, Inc. (STAG) 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 STAG'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 STAG'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 STAG's most recent Annual Report on Form 10-K for the year ended December 31, 2023, as updated by the Company's subsequent reports filed with the Securities and Exchange Commission. Accordingly, there is no assurance that STAG's expectations will be realized. Except as otherwise required by the federal securities laws, STAG 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 STAG's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Defined Terms, Including Non-GAAP Measurements

Please refer to the Definitions section near the end of these materials for definitions of capitalized terms used herein, including, among others, Annualized Base Rental Revenue, Capitalization Rate and Retention, as well as non-GAAP financial measures, such as Adjusted EBITDAre, Cash NOI, and Core FFO. These materials provide reconciliations of non-GAAP financial measures to net income (loss) in accordance with GAAP. None of the non-GAAP financial measures is intended as an alternative to net income (loss) in accordance with GAAP as a measure of the Company's financial performance.

Golden, CO

Londonderry, NH

STAG SUPPLEMENTAL INFORMATION - FIRST QUARTER 2024	1

TABLE OF CONTENTS

	Page		Page
Overview	3	Top Markets, Tenants and Industries
		Top Markets, Tenants and Industries	14
Financials
Consolidated Balance Sheets	4	Capitalization and Guidance
Consolidated Statements of Operations	5	Capital Structure, Debt Metrics & Covenants	15
Net Operating Income (NOI) & Cash NOI	6	Debt Summary	16
Funds From Operations (FFO) & Core FFO	7	Debt Maturity Schedule	17
Adjusted EBITDAre & Cash Available for Distribution (CAD)	8	Guidance	18
Portfolio		Definitions	19-22
Acquisitions	9
Leasing & Retention Statistics	10
Same Store NOI	11
Capital Expenditures	12
Lease Expiration Schedule	13

STAG SUPPLEMENTAL INFORMATION - FIRST QUARTER 2024	2

OVERVIEW

Snapshot (March 31, 2024)

Square Feet	113.0 million
Number of Buildings	570
Number of States	41
Portfolio Occupancy	97.7%
Operating Portfolio Occupancy	97.9%
Weighted Average Lease Term	4.4 years
Weighted Average Rent	$5.34/sf
Net Debt to Annualized Run Rate	4.9x
Adjusted EBITDAre ratio
Monthly Dividend (annualized)	$0.123333 ($1.48)

West Columbia, SC

Waukegan, IL

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CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)		March 31, 2024			December 31, 2023
Assets
Rental Property:
Land	$	700,199	$	698,633
Buildings and improvements, net of accumulated depreciation of $967,141 and $921,846, respectively		4,859,117			4,838,522
Deferred leasing intangibles, net of accumulated amortization of $383,967 and $360,094, respectively		422,153			435,722
Total rental property, net		5,981,469			5,972,877
Cash and cash equivalents		12,423			20,741
Restricted cash		667			1,127
Tenant accounts receivable		128,797			128,274
Prepaid expenses and other assets		84,087			80,455
Interest rate swaps		57,532			50,418
Operating lease right-of-use assets		29,085			29,566
Total assets	$	6,294,060	$	6,283,458
Liabilities and Equity
Liabilities:
Unsecured credit facility	$	435,000	$	402,000
Unsecured term loans, net		1,020,837			1,021,773
Unsecured notes, net		1,195,941			1,195,872
Mortgage notes, net		4,350			4,401
Accounts payable, accrued expenses and other liabilities		80,489			83,152
Interest rate swaps		47			-
Tenant prepaid rent and security deposits		45,795			44,238
Dividends and distributions payable		22,936			22,726
Deferred leasing intangibles, net of accumulated amortization of $28,709 and $26,613, respectively		32,312			29,908
Operating lease liabilities		33,133			33,577
Total liabilities	$	2,870,840	$	2,837,647
Equity:
Preferred stock, par value $0.01 per share, 20,000,000 shares authorized at March 31, 2024 and December 31, 2023; none issued or outstanding		-			-
Common stock, par value $0.01 per share, 300,000,000 shares authorized at March 31, 2024 and December 31, 2023, 182,074,776 and 181,690,867 shares issued and		1,821			1,817
outstanding at March 31, 2024 and December 31, 2023, respectively
Additional paid-in capital		4,273,183			4,272,376
Cumulative dividends in excess of earnings		(979,629)			(948,720)
Accumulated other comprehensive income		56,127			49,207
Total stockholders' equity		3,351,502			3,374,680
Noncontrolling interest		71,718			71,131
Total equity		3,423,220			3,445,811
Total liabilities and equity	$	6,294,060	$	6,283,458

STAG SUPPLEMENTAL INFORMATION - FIRST QUARTER 2024	4

CONSOLIDATED STATEMENTS OF OPERATIONS

		Three months ended March 31,
(in thousands, except per share data)		2024			2023
Revenue
Rental income	$	187,402	$	173,268
Other income		141			285
Total revenue		187,543			173,553
Expenses
Property		39,071			35,881
General and administrative		12,952			12,676
Depreciation and amortization		71,427			68,944
Other expenses		563			2,979
Total expenses		124,013			120,480
Other income (expense)
Interest and other income		11			19
Interest expense		(25,421)			(22,612)
Debt extinguishment and modification expenses		(667)			-
Gain on the sales of rental property, net		-			20,128
Total other income (expense)		(26,077)			(2,465)
Net income	$	37,453	$	50,608
Less: income attributable to noncontrolling interest		826			1,142
Net income attributable to STAG Industrial, Inc.	$	36,627		$	49,466
Less: amount allocated to participating securities		47			53
Net income attributable to common stockholders	$	36,580		$	49,413
Weighted average common shares outstanding - basic		181,708			179,196
Weighted average common shares outstanding - diluted		181,991			179,297
Net income per share - basic and diluted
Net income per share attributable to common stockholders - basic	$	0.20	$	0.28
Net income per share attributable to common stockholders - diluted	$	0.20	$	0.28

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NET OPERATING INCOME (NOI) &

CASH NOI

		Three months ended March 31,
(in thousands)		2024			2023
Net income	$	37,453	$	50,608
General and administrative		12,952			12,676
Depreciation and amortization		71,427			68,944
Interest and other income		(11)			(19)
Interest expense		25,421			22,612
Debt extinguishment and modification expenses		667			-
Other expenses		563			2,979
Gain on the sales of rental property, net		-			(20,128)
Net operating income (1)	$	148,472		$	137,672
Net operating income	$	148,472	$	137,672
Rental property straight-line rent adjustments, net		(2,697)			(4,987)
Amortization of above and below market leases, net		(303)			(129)
Cash net operating income	$	145,472		$	132,556
Cash net operating income	$	145,472
Cash NOI from acquisition timing		473
Cash termination, solar and other income		(1,219)
Run Rate Cash NOI	$	144,726
Same Store Portfolio NOI
Total NOI	$	148,472	$	137,672
Less: NOI non-same-store properties		(6,187)			(1,937)
Termination, solar and other adjustments, net		(705)			(907)
Same Store NOI	$	141,580		$	134,828
Less: straight-line rent adjustments, net		(2,600)			(4,860)
Plus: amortization of above and below market leases, net		123			(129)
Same Store Cash NOI	$	139,103		$	129,839

(1) For the three months ended March 31, 2024 and 2023, Total Rental Income was $187,402 and $173,268, comprising of base rental income of $150,064 and $141,156, and tenant reimbursement income of $37,338 and $32,112, respectively.

STAG SUPPLEMENTAL INFORMATION - FIRST QUARTER 2024	6

FUNDS FROM OPERATIONS (FFO) &

CORE FFO

		Three months ended March 31,
(in thousands, except per share data)		2024			2023
Net income	$	37,453	$	50,608
Rental property depreciation and amortization		71,368			68,889
Gain on the sales of rental property, net		-			(20,128)
Funds from operations	$	108,821		$	99,369
Amount allocated to restricted shares of common stock and unvested units		(146)			(147)
Funds from operations attributable to common stockholders and unit holders	$	108,675		$	99,222
Funds from operations attributable to common stockholders and unit holders	$	108,675	$	99,222
Amortization of above and below market leases, net		(303)			(129)
Non-recurring dead deal costs		-			2,491
Debt extinguishment and modification expenses		667			-
Core funds from operations	$	109,039		$	101,584
Weighted average common shares and units
Weighted average common shares outstanding		181,708			179,196
Weighted average units outstanding		3,838			3,897
Weighted average common shares and units - basic		185,546			183,093
Dilutive shares		283			101
Weighted average common shares, units, and other dilutive shares - diluted		185,829			183,194
Core funds from operations per share / unit - basic	$	0.59		$	0.55
Core funds from operations per share / unit - diluted	$	0.59	$	0.55

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ADJUSTED EBITDAre & CASH AVAILABLE FOR

DISTRIBUTION (CAD)

		Three months ended March 31,
(in thousands)		2024			2023
Net income	$	37,453	$	50,608
Depreciation and amortization		71,427			68,944
Interest and other income		(11)			(19)
Interest expense		25,421			22,612
Gain on the sales of rental property, net		-			(20,128)
EBITDA for Real Estate (EBITDAre)	$	134,290		$	122,017
EBITDAre	$	134,290	$	122,017
Straight-line rent adjustments, net		(2,762)			(5,044)
Amortization of above and below market leases, net		(303)			(129)
Non-cash compensation expense		2,908			3,092
Non-recurring other items		(133)			2,390
Debt extinguishment and modification expenses		667			-
Adjusted EBITDAre	$	134,667	$	122,326
Cash available for distribution reconciliation
Core funds from operations	$	109,039	$	101,584
Amount allocated to restricted shares of common stock and unvested units		146			147
Non-rental property depreciation and amortization		59			55
Straight-line rent adjustments, net		(2,762)			(5,044)
Capital expenditures		(8,394)			(5,947)
Capital expenditures reimbursed by tenants		(453)			(189)
Lease commissions and tenant improvements		(3,394)			(4,575)
Non-cash portion of interest expense		984			976
Non-cash compensation expense		2,908			3,092
Cash available for distribution	$	98,133	$	90,099

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ACQUISITIONS

			FIRST QUARTER 2024 ACQUISITIONS
						Cash	Straight-Line
					Weighted Average Lease	Capitalization	Capitalization
Market	Date Acquired	Square Feet	Buildings	Purchase Price ($000)	Term (Years)	Rate	Rate
Cincinnati, OH	3/18/2024	697,500	1	$50,073	6.8
Total / weighted average		697,500	1	$50,073	6.8	6.1%	6.8%

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