STAG Industrial, Inc. Announces Third Quarter 2013 Results

          STAG Industrial, Inc. Announces Third Quarter 2013 Results

PR Newswire

BOSTON, Nov. 4, 2013

BOSTON, Nov.4, 2013 /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 financial and operating results for the third quarter 2013.

(Logo: http://photos.prnewswire.com/prnh/20110907/NE63410LOGO)

In the Third Quarter of 2013, the Company:

  oGenerated Cash Net Operating Income (Cash NOI) of $29.3 million compared
    to $19.2 million for the third quarter of 2012, an increase of 53%.
  oGenerated Core Funds from Operations (Core FFO) of $17.5 million compared
    to $10.9 million for the third quarter of 2012, an increase of 60%. On a
    per share basis, this represents $0.35 per fully diluted share compared to
    $0.29 per fully diluted share in the third quarter of 2012, a 21%
    increase.
  oGenerated Adjusted Funds from Operations (AFFO) of $17.6 million compared
    to $11.0 million for the third quarter of 2012, an increase of 60%.
  oAcquired six buildings for a total all-in cost of approximately $79.5
    million with a weighted average lease term of over 5 years.
  oAchieved year to date acquisition volume of $249 million.
  oAdded approximately 1.9 million square feet to the Company's portfolio
    through these acquisitions, increasing the Company's square footage by
    5.8% over the prior quarter.
  oLeased approximately 469,000 square feet including approximately 149,000
    square feet of new and expansion leases.
  oAchieved occupancy on the Company's portfolio of 94.0% and same store
    occupancy of 92.5%.
  oAttained a 61% retention rate on the 2.7 million square feet of leases due
    to expire year to date.
  oDeclared a third quarter dividend of $0.30 per share, an annualized rate
    of 6.0% on the quarter ended share price of $20.12.
  oAnnounced the increase in frequency of the Company's common dividend
    payment from quarterly to monthly starting in the fourth quarter of 2013.

"We continue to enjoy success in the execution of our investment thesis and
the attainment of our significant external growth targets. Our leasing team
has done an admirable job in filling vacancies as they occur in our owned
portfolio," commented Benjamin Butcher, the Company's Chief Executive Officer.

Acquisition Activity

During the third quarter of 2013, the Company completed the acquisition of six
industrial buildings consisting of approximately 1.9 million square feet in
six individual transactions.

THIRD QUARTER 2013 ACQUISITIONS
STAG Industrial, Inc.
Acq.     SF         Buildings  CBSA                                      Cost
Date                                                                     (mm)
07/18/13 150,000    1          Nashville-Davidson-Murfreesboro-Franklin, $5.7
                               TN
07/31/13 100,100    1          Tulsa, OK                                 $5.1
08/16/13 205,063    1          Milwaukee-Waukesha-West Allis, WI         $9.3
08/21/13 1,035,249  1          Baltimore-Columbia-Towson, MD             $44.4
09/20/13 107,348    1          Minneapolis-St. Paul-Bloomington, MN-WI   $5.1
09/26/13 350,500    1          Springfield, OH                           $9.9
Total    1,948,260  6                                                    $79.5

Subsequent to the end of the third quarter, the Company acquired one building
containing 215,900 square feet located in Orlando, Florida for approximately
$8.1 million.

The Company also has entered into contracts to acquire four  additional
buildings for a combined purchase price of approximately $40 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.

Leasing Activity and Occupancy

In the third quarter the Company signed 148,852 square feet of new and
expansion leases and 320,245 square feet of renewals. Tenant improvements and
leasing commissions for leases signed in the third quarter were approximately
$1.3 million or 4.4% of Cash NOI.

Five leases consisting of 235,112 square feet expired in the third quarter of
2013. The tenant retention rate for these leases was 29%. Additionally, there
was one month to month lease containing 283,000 square feet which expired in
the third quarter resulting in an aggregate retention rate for the third
quarter of 13% and a year to date retention rate of 61%. The rental rate on
the renewed leases expiring in the third quarter increased 1.3% on a cash
basis and increased 9.0% on a GAAP basis. Of the total 449,812 square feet
that did not renew in the third quarter, 220,182 square feet was re-leased the
next business day.

Occupancy for the Company's portfolio was 94.0% at the end of the third
quarter 2013 compared to 93.9% at end of the second quarter 2013. Year over
year same store occupancy decreased from 95.6% to 92.5%. The quarter to date
same store portfolio is defined as those properties owned July 1, 2012 that
were owned throughout 2012 and through the third quarter of 2013. The same
store occupancy decline for the quarter is principally the result of the
previously disclosed 427,000 square foot move out in Sun Prairie, Wisconsin on
May 31, 2013. Subsequent to quarter end, the Company signed a ten year lease
for the entire space.

Key Financial Measures

Cash NOI, for the third quarter of 2013 was approximately $29.3 million, an
increase of 53% compared to Cash NOI in the third quarter of 2012 of
approximately $19.2 million. Cash NOI after noncontrolling interest was
approximately $25.2 million for the third quarter of 2013.

Core FFO for the third quarter of 2013 was approximately $17.5 million, an
increase of 60% over the third quarter of 2012 of approximately $10.9 million.
Core FFO attributable to common stockholders was approximately $15.1 million
or $0.35 per diluted share of common stock as compared to $0.29 per diluted
share of common stock in the third quarter of 2012, an increase of 21%.

AFFO was approximately $17.6 million for the third quarter of 2013 compared to
approximately $11.0 million for the third quarter of 2012, an increase of 60%.
AFFO attributable to common stockholders was approximately $15.2 million in
the third quarter of 2013. Net Income for the third quarter of 2013 was
approximately $0.3 million. Net Income was reduced by depreciation and
amortization expense of approximately $17.5 million.

A reconciliation of Net Income to Cash NOI, Adjusted EBITDA, Core FFO, FFO,
and AFFO, all non-GAAP financial measures, appears at the end of this release.

The Company has included in a supplemental information package the results and
operating statistics that reflect the activities of the Company for the three
months ended September 30, 2013. See below regarding information for the
supplemental information package.

Financial Strength and Liquidity

As of quarter end, the Company's net debt to annualized adjusted earnings
before interest, tax, depreciation and amortization (Adjusted EBITDA) was
4.6x, interest coverage based on Adjusted EBITDA was 5.0x, and the weighted
average interest rate on the outstanding debt was 3.98%. Adjusted EBITDA was
calculated based on annualizing the Company's results for the three months
ended September 30, 2013. The Company's total debt to total enterprise value
was 29.9% as of September 30, 2013. Enterprise value of $1.7 billion is based
on the September 30, 2013 closing share price of $20.12 times 51 million
outstanding shares and units plus $139 million of preferred equity and total
debt of $497 million.

As of quarter end, the Company had approximately $497 million of debt
outstanding with an average term of 5.2 years. This included $150 million
under the Company's five year unsecured term loan, which was fully drawn at
September 30, 2013. The interest rate on $100 million of this amount has been
swapped at an all-in interest rate of 2.42%. The outstanding debt balance
also included $100 million drawn under the Company's $150 million seven year
unsecured term loan, which is now swapped at an all-in interest rate of
3.75%.

At quarter end, there was a $20 million outstanding balance and $180 million
of availability under the Company's $200 million unsecured revolving credit
facility and a $100 million outstanding balance and $50 million of
availability under the Company's seven year unsecured term loan.

Subsequent to quarter end, the Company modified the terms of its unsecured
revolving credit facility and five year term loan to further reduce borrowing
spreads and unused fees.

Offerings

Under the "At The Market" (ATM) stock offering program, the Company issued an
aggregate of approximately 1.8 million shares of common stock during the third
quarter of 2013, receiving gross proceeds of approximately $36.9 million.

Dividends

During the quarter, the Board of Directors approved the increase in the
frequency of the Company's common dividend payment from quarterly to monthly.
The Company's Board of Directors then declared a monthly dividend of $0.10 per
common share per month, which equates to $1.20 per share annually, and $0.30
per share quarterly, for the months of October, November, and December.

The Company's Board of Directors has declared a December 13, 2013 record date
for the payment of the fourth quarter preferred stock dividends for its 9.0%
Series A Cumulative Redeemable Preferred Stock (NYSE: STAG Pr A) ("Series A
Preferred") and its 6.625% Series B Cumulative Redeemable Preferred Stock
(NYSE: STAG Pr B) ("Series B Preferred"). The Company confirmed that the
dividend for the Series A Preferred is $0.5625 per share, which equates to
$2.25 per share on an annualized basis, and the dividend for the Series B
Preferred is $0.4140625 per share, which equates to $1.65625 per share on an
annualized basis. Both preferred stock dividends will be payable on December
31, 2013.

Board of Directors

On November 1, 2013, the Board of Directors appointed Virgis W. Colbert to
serve as a member of the Board of Directors, effective January 1, 2014.

Conference Call

The Company will host a conference call on Tuesday, November 5, 2013, at 11:00
a.m. (Eastern Time) to discuss the operating and financial results. The call
can be accessed live over the phone by dialing (877) 407-0784 or, for
international callers, (201) 689-8560. A replay will be available shortly
after the call and can be accessed by dialing (877) 870-5176 or, for
international callers, (858) 384-5517. The passcode for the replay is
10000694. The replay will be available until November 12, 2013.

Interested parties also may listen to a simultaneous webcast of the conference
call by logging on to the Company's website at www.stagindustrial.com. The
on-line replay will be available for a limited time following the call.

Supplemental Schedules

The Company has provided a supplemental information package to provide
additional disclosure and financial information for the benefit of the
Company's various stakeholders. This can be found under the "Presentations"
tab in the Investor Relations section of the Company's website at
www.stagindustrial.com.

Additional information is also available on the Company's website at
www.stagindustrial.com.





CONSOLIDATED BALANCE SHEETS
STAG Industrial, Inc.
(unaudited, in thousands, except share data)
                                   September 30, 2013    December 31, 2012
Assets
Rental Property:
 Land                           $           $          
                                      126,685           104,656
 Buildings                      813,705               654,518
 Tenant improvements            35,717                34,900
 Building and land improvements 30,831                22,153
 Less: accumulated depreciation (64,562)              (46,175)
 Total rental property, net  942,376               770,052
Cash and cash equivalents          23,909                19,006
Restricted cash                    6,810                 5,497
Tenant accounts receivable, net    12,911                9,351
Prepaid expenses and other assets  3,590                 1,556
Interest rate swaps                2,282                 -
Deferred financing fees, net       5,354                 4,704
Leasing commissions, net           2,720                 1,674
Goodwill                           4,923                 4,923
Due from related parties           180                   806
Deferred leasing intangibles, net  208,097               187,555
 Total assets               $           $          
                                    1,213,152            1,005,124
Liabilities and Equity
Liabilities:
Mortgage notes payable             $           $          
                                      226,686           229,915
Unsecured credit facility          20,000                99,300
Unsecured term loans               250,000               150,000
Accounts payable, accrued expenses 16,158                12,111
and other liabilities
Interest rate swaps                131                   480
Tenant prepaid rent and security   7,956                 5,686
deposits
Dividends and distributions        15,285                11,301
payable
Deferred leasing intangibles, net  6,871                 6,871
 Total liabilities          543,087               515,664
Equity:
Preferred stock, par value $0.01
per share, 10,000,000
shares authorized,
 Series A, 2,760,000 shares
(liquidation preference of
 $25.00 per share) issued and   69,000                69,000
outstanding at
 September 30, 2013 and
December 31, 2012
 Series B, 2,800,000 shares
(liquidation preference of
 $25.00 per share) issued and
outstanding at                     70,000                -
 September 30, 2013 and no
shares issued and
 outstanding at December 31,
2012
Common stock, par value $0.01 per
share, 100,000,000
shares authorized, 44,052,248 and
35,698,582 shares                  440                   357
issued and outstanding at
September 30, 2013 and
December 31, 2012, respectively
Additional paid-in capital         562,511               419,643
Common stock dividends in excess   (105,697)             (61,024)
of earnings
Accumulated other comprehensive    1,906                 (371)
income (loss)
Total stockholders' equity         598,160               427,605
Noncontrolling interest            71,905                61,855
 Total equity                670,065               489,460
 Total liabilities and       $           $          
equity                             1,213,152            1,005,124





CONSOLIDATED STATEMENTS OF OPERATIONS
STAG Industrial, Inc.
(unaudited, in thousands, except share data)
                     Three months Ended September  Nine months Ended September
                     30,                           30,
                     2013           2012           2013          2012
Revenue
 Rental income    $        $        $       $      
                        30,391     18,708     84,871    50,797
 Tenant           4,285          2,063          11,427        6,068
recoveries
 Other income     207            331            865           981
 Total revenue 34,883         21,102         97,163        57,846
Expenses
 Property         2,686          1,262          7,699         4,030
 General and      4,376          3,656          13,358        9,962
administrative
 Real estate      3,622          1,603          9,518         4,574
taxes and insurance
 Property         986            1,067          2,831         2,509
acquisition costs
 Depreciation and 17,463         10,236         49,411        28,110
amortization
 Loss on          -              -              -             622
impairment
 Other expenses   89             86             336           145
 Total         29,222         17,910         83,153        49,952
expenses
Other income
(expense)
 Interest income  3              9              9             17
 Interest expense (5,370)        (3,558)        (14,866)      (11,776)
 Gain on interest -              -              -             215
rate swaps
 Offering costs   -              -              (27)          (68)
 Loss on
extinguishment of    -              (947)          -             (929)
debt
 Total other   (5,367)        (4,496)        (14,884)      (12,541)
income (expense)
 Net income    $        $        $       $      
(loss) from                                        
continuing           294           (1,304)        (874)        (4,647)
operations
Discontinued
operations
 Income
attributable to      -              329            102           564
discontinued
operations
 Loss on
impairment
attributable to      -              (3,941)        -             (3,941)
discontinued
 operations
 Gain on sales of -              -              464           219
real estate
 Total income
(loss) attributable  -              (3,612)        566           (3,158)
to discontinued
 operations
                     $        $        $       $      
Net income (loss)                                  
                     294           (4,916)        (308)        (7,805)
 Less: loss
attributable to
noncontrolling       (335)          (1,248)        (958)         (3,244)
interest after
 preferred stock
dividends
Net income (loss)    $        $        $       $      
attributable to STAG                              
Industrial, Inc.     629           (3,668)        650          (4,561)
 Less: preferred  2,712          1,553          6,783         4,659
stock dividends
 Less: amount
allocated to         64             41             197           81
unvested restricted
 stockholders
Net loss             $        $        $       $      
attributable to                                         
common stockholders  (2,147)        (5,262)        (6,330)       (9,301)
 Weighted average
common shares
outstanding —        42,753,722     29,752,057     41,766,740    21,716,590
 basic and
diluted
Loss per share —
basic and diluted
 Loss from
continuing           $        $        $       $      
operations                                            
attributable to      (0.05)        (0.08)        (0.16)       (0.32)
 common
stockholders
 Income (loss)
from discontinued    $        $        $       $      
operations                                         
 attributable to     -        (0.10)        0.01         (0.11)
common stockholders
 Loss per share — $        $        $       $      
basic and diluted                                     
                     (0.05)        (0.18)        (0.15)       (0.43)





RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
STAG Industrial, Inc.
(unaudited, in thousands)
                              Three months Ended       Nine months Ended
                              September 30,            September 30,
                              2013        2012         2013        2012
                              $      $       $      $     
Net income (loss)                                     
                                294    (4,916)       (308)    (7,805)
Asset management fee income   (192)       (303)        (707)       (924)
General and administrative    4,376       3,656        13,358      9,962
Property acquisition costs    986         1,067        2,831       2,509
Depreciation and amortization 17,463      10,354       49,508      28,486
Interest income               (3)         (9)          (9)         (17)
Interest expense              5,370       3,578        14,866      11,934
Gain on interest rate swaps   -           -            -           (215)
Offering costs                -           -            27          68
Loss on impairment            -           3,941        -           4,563
Loss on extinguishment of     -           947          -           929
debt
Other expenses                89          86           336         145
Gain on sales of real estate  -           -            (464)       (219)
                              $      $       $      $     
NET OPERATING INCOME                                      
                              28,383     18,401      79,438     49,416
Noncontrolling interest       (3,926)     (3,551)      (10,726)    (12,860)
Net operating income after    $      $       $      $     
noncontrolling interest                                   
                              24,457     14,850      68,712     36,556
                              $      $       $      $     
Net operating income                                     
                              28,383     18,401      79,438     49,416
Straight-line rent            (632)       (464)        (2,139)     (1,733)
adjustments, net
Intangible amortization in    1,524       1,223        4,399       3,481
rental income, net
                              $      $       $      $     
CASH NET OPERATING INCOME                                 
                              29,275     19,160      81,698     51,164
Noncontrolling interest       (4,050)     (3,698)      (11,031)    (13,313)
Cash net operating income     $      $       $      $     
after noncontrolling interest                             
                              25,225     15,462      70,667     37,851
                              $      $       $      $     
Cash net operating income                                 
                              29,275     19,160      81,698     51,164
New property cash net         (12,381)    (751)        (37,765)    (5,117)
operating income
Cash net operating income     -           (443)        (160)       (1,026)
from discontinued operations
Termination income            -           (90)         -           (240)
SAME STORE CASH NET OPERATING $      $       $      $     
INCOME                                                    
                              16,894     17,876      43,773     44,781
                              $      $       $      $     
Net income (loss)                                     
                                294     (4,916)      (308)     (7,805)
Intangible amortization in    1,524       1,223        4,399       3,481
rental income, net
Property acquisition costs    986         1,067        2,831       2,509
Depreciation and amortization 17,463      10,354       49,508      28,486
Interest income               (3)         (9)          (9)         (17)
Interest expense              5,370       3,578        14,866      11,934
Gain on interest rate swaps   -           -            -           (215)
Offering costs                -           -            27          68
Loss on impairment            -           3,941        -           4,563
Loss on extinguishment of     -           947          -           929
debt
Gain on sales of real estate  -           -            (464)       (219)
                              $      $       $      $     
ADJUSTED EBITDA                                           
                              25,634     16,185      70,850     43,714
Noncontrolling interest      (3,546)     (3,123)      (9,566)     (11,376)
Adjusted EBITDA after         $      $       $      $     
noncontrolling interest                                   
                              22,088     13,062      61,284     32,338
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
STAG Industrial, Inc.
(unaudited, in thousands, except share data)
                              Three months Ended       Nine months Ended
                              September 30,            September 30,
                              2013        2012         2013        2012
                              $      $       $      $     
Net income (loss)                                     
                                294    (4,916)       (308)    (7,805)
Depreciation and amortization 17,463      10,354       49,508      28,486
Loss on impairment            -           3,941        -           4,563
Gain on sales of real estate  -           -            (464)       (219)
                              $      $       $      $     
Funds from operations                                   
                              17,757     9,379        48,736     25,025
Preferred stock dividends     (2,712)     (1,553)      (6,783)     (4,659)
Amount allocated to unvested  (64)        (41)         (197)       (81)
restricted stockholders
Funds from operations        $      $       $      $     
attributable to common                                  
stockholders                  14,981     7,785        41,756     20,285
and unit holders
Noncontrolling interest       (2,081)     (1,510)      (5,665)     (5,300)
Funds from operations         $      $       $      $     
attributable to common                                  
stockholders                  12,900     6,275        36,091     14,985
Funds from                    $      $       $      $     
operationsattributable to                              
common stockholders           14,981     7,785        41,756     20,285
and unit holders
Intangible amortization in    1,524       1,223        4,399       3,481
rental income, net
Termination income            -           (90)         -           (240)
Property acquisition costs    986         1,067        2,831       2,509
Gain on interest rate swaps   -           -            -           (215)
Offering costs                -           -            27          68
Loss on extinguishment of     -           947          -           929
debt
                              $      $       $      $     
CORE FUNDS FROM OPERATIONS                                
                              17,491     10,932      49,013     26,817
Noncontrolling interest      (2,428)     (2,118)      (6,644)     (7,000)
Core funds from operations    $      $       $      $     
attributable to common                                  
                              15,063     8,814        42,369     19,817
stockholders
Weighted average shares       42,753,722  29,752,057   41,766,740  21,716,590
outstanding - basic
Unvested restricted shares    77,298      43,613       94,164      63,401
Unvested outperformance plan  497,018     566,676      497,018     566,676
Weighted average shares       43,328,038  30,362,346   42,357,922  22,346,667
outstanding - diluted
CORE FUNDS FROM OPERATIONS    $      $       $      $     
PER COMMON SHARE -                                    
BASIC                          0.35      0.30       1.01      0.91
CORE FUNDS FROM OPERATIONS    $      $       $      $     
PER COMMON SHARE -                                    
DILUTED                        0.35      0.29       1.00      0.89
                              $      $       $      $     
Core funds from operations                              
                              17,491      10,932       49,013      26,817
Straight-line rent            (632)       (464)        (2,139)     (1,733)
adjustments, net
Recurring capital             (249)       (65)         (940)       (262)
expenditures
Lease renewal commissions and (8)         (133)        (985)       (254)
tenant improvements
Non-cash portion of interest  268         257          783         755
expense
Non-cash compensation expense 742         481          2,227       1,457
ADJUSTED FUNDS FROM           $      $       $      $     
OPERATIONS                                                
                              17,612     11,008      47,959     26,780
Noncontrolling interest       (2,445)     (2,132)      (6,501)     (6,990)
Adjusted funds from           $      $       $      $     
operations attributable to                              
common                        15,167     8,876        41,458     19,790
stockholders





Non-GAAP Financial Measures

Net operating income (NOI) is defined as rental revenue, including
reimbursements, less property expenses and real estate taxes, which excludes
depreciation, amortization, general and administrative expenses, interest
expense, interest income, gain on interest rate swaps, asset management fee
income, property acquisition costs, offering costs, loss on impairment, loss
on extinguishment of debt, gain on sales of real estate, and other expenses.
The Company defines Cash NOI as NOI less straight-line rent adjustments and
less intangible amortization in rental income. The Company considers NOI and
Cash NOI to be appropriate supplemental performance measures because they
reflect the operating performance of the Company's properties and exclude
certain items that are not considered to be controllable in connection with
the management of the property. However, these measures should not be viewed
as alternative measures of the Company's financial performance since they
exclude expenses which could materially impact the Company's results of
operations. Further, the Company's NOI and Cash NOI may not be comparable to
that of other real estate companies, as they may use different methodologies
for calculating NOI and Cash NOI.

The Company calculates FFO in accordance with the standards established by the
National Association of Real Estate Investment Trusts ("NAREIT"). FFO
represents net income (loss) (computed in accordance with GAAP), excluding
gains (or losses) from sales of depreciable operating property, impairment
write-downs of depreciable real estate, real estate related depreciation and
amortization (excluding amortization of deferred financing costs and fair
market value of debt adjustment) and after adjustments for unconsolidated
partnerships and joint ventures.

The Company uses FFO as a supplemental performance measure because, in
excluding real estate related depreciation and amortization and gains and
losses from property dispositions, it provides a performance measure that,
when compared year over year, captures trends in occupancy rates, rental rates
and operating costs. The Company also believes that, as a widely recognized
measure of the performance of REITs, FFO will be used by investors as a basis
to compare the Company's operating performance with that of other REITs.

The Company presents Core FFO and Adjusted FFO excluding property acquisition
costs, gain on interest rate swaps, offering costs, loss on extinguishment of
debt, lease termination income, and intangible amortization in rental income.
Adjusted FFO of the Company also excludes straight-line rent adjustments,
non-cash portion of interest expense, non-cash compensation expense and adding
recurring capital expenditures and lease renewal commissions and tenant
improvements. The Company believes that Core FFO and Adjusted FFO are useful
supplemental measures regarding the Company's operating performance as they
provide a more meaningful and consistent comparison of the Company's operating
performance and allows investors to more easily compare the Company's
operating results.

However, because FFO, Core FFO and Adjusted FFO exclude depreciation and
amortization and capture neither the changes in the value of the Company's
properties that result from use or market conditions, nor the level of capital
expenditures and leasing commissions necessary to maintain the operating
performance of the Company's properties, all of which have real economic
effect and could materially impact the Company's results from operations, the
utility of FFO, Core FFO and Adjusted FFO as measures of the Company's
performance is limited. Other equity REITs may not calculate FFO in accordance
with the NAREIT definition as the Company does, and, accordingly, the
Company's FFO, Core FFO and Adjusted FFO may not be comparable to such other
REITs' FFO, Core FFO or Adjusted FFO. FFO, Core FFO and Adjusted FFO should
not be used as a measure of the Company's liquidity, and are not indicative of
funds available for the Company's cash needs, including its ability to pay
dividends.

The Company believes that EBITDA and Adjusted EBITDA are helpful to investors
as supplemental measures of the operating performance of a real estate company
because they are direct measures of the actual operating results of the
Company's industrial properties. The Company also uses these measures in
ratios to compare its performance to that of its industry peers. The Company
presents Adjusted EBITDA excluding property acquisition costs, gain on
interest rate swaps, offering costs, loss on impairment, loss on
extinguishment of debt, gain on sales of real estate, and intangible
amortization in rental income.

In the measures above, the Company excludes certain nonrecurring items that
the Company does not believe are reasonably likely to recur within two years.

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 Section27A of the Securities Act of 1933, as amended,
and Section21E 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, 2012, as updated by the Company's subsequent reports filed with
the Securities and Exchange Commission. 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.

Website: http://www.stagindustrial.com
Contact: STAG Industrial, Inc., Gregory W. Sullivan, Chief Financial Officer,
617-226-4987, InvestorRelations@stagindustrial.com
 
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