STAG Industrial Closes Sale Of One Million Square Foot Facility Located In Burlington, New Jersey

Rhea-AI Summary

STAG Industrial has completed the sale of a one million square foot building in Burlington, New Jersey for $110.5 million, achieving a cash capitalization rate of 5.4%. This transaction is part of the Company's largest annual disposition, totaling $279.4 million from seven properties sold in 2020, previously acquired at an 8.2% capitalization rate. CEO Ben Butcher expressed confidence in utilizing the proceeds for further growth.

Positive

• Successful sale of Burlington property for $110.5 million.
• Achieved largest annual disposition volume in company history at $279.4 million.
• Proceeds poised for further growth through accretive redeployment.

Negative

• Properties sold at a lower capitalization rate than acquired (5.4% vs. 8.2%).

BOSTON, Dec. 28, 2020 /PRNewswire/ -- STAG Industrial, Inc. (the "Company") (NYSE:STAG) today announced it has successfully closed the sale of its one million square foot building located in Burlington, New Jersey that was until very recently occupied by the GSA. The gross proceeds of $110.5 million represent a cash capitalization rate of 5.4%.

Including this sale, the Company sold seven buildings with gross proceeds of $279.4 million in 2020. In aggregate, these buildings were originally acquired at an 8.2% cash capitalization rate and were sold at a 5.4% cash capitalization rate. This annual disposition volume is the largest in the Company's history.

"The sale of our Burlington asset was a great outcome for our Company," said Ben Butcher, Chief Executive Officer of the Company. "We look forward to continuing our growth with the accretive redeployment of these proceeds."

About STAG Industrial, Inc.

STAG Industrial, Inc. is a real estate investment trust focused on the acquisition, ownership and operation of single-tenant, industrial properties throughout the United States. As of September 30, 2020, the Company's portfolio consists of 462 buildings in 38 states with approximately 92.3 million rentable square feet.

For additional information, please visit the Company's website at www.stagindustrial.com.

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 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. Forward-looking statements in this press release include, among others, statements about expected acquisitions, dispositions and change in Same Store Cash NOI, and the assumptions underlying such expectations, including completion of acquisitions and dispositions.  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 Company's failure to negotiate definitive purchase and sale agreements or to satisfy the closing conditions in purchase and sale agreements; the effects of the COVID-19 pandemic and actions taken to contain its spread; and the risk factors discussed in the Company's annual report on Form 10-K for the year ended December 31, 2019 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.

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SOURCE STAG Industrial, Inc.

FAQ

What is the significance of STAG's recent property sale?

STAG Industrial's recent sale of a one million square foot building in Burlington, NJ for $110.5 million marks a successful transaction and the largest annual disposition in its history.

How much revenue did STAG generate from property sales in 2020?

In 2020, STAG Industrial generated $279.4 million from the sale of seven buildings.

What was the cash capitalization rate for STAG's Burlington property sale?

The cash capitalization rate for the sold Burlington property was 5.4%.

How does STAG's acquisition rate compare to recent sales?

STAG's properties were originally acquired at an 8.2% cash capitalization rate, indicating that the recent sales were at a lower return rate.