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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Stag Industrial Inc | NYSE:STAG | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.17 | 0.48% | 35.52 | 35.82 | 35.23 | 35.68 | 838,405 | 23:48:15 |
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Maryland
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27-3099608
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(State or other jurisdiction
of incorporation or organization)
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(IRS Employer
Identification No.)
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|
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One Federal Street, 23rd Floor
Boston, Massachusetts
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02110
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
x
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Accelerated filer
¨
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Non-accelerated filer
¨
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Smaller reporting company
¨
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(Do not check if a smaller reporting company)
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Emerging growth company
¨
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Class
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Outstanding at October 31, 2018
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Common Stock ($0.01 par value)
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108,893,286
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6.875% Series C Cumulative Redeemable Preferred Stock ($0.01 par value)
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3,000,000
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September 30, 2018
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December 31, 2017
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||||
Assets
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||||
Rental Property:
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||||
Land
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$
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355,590
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$
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321,560
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Buildings and improvements, net of accumulated depreciation of $301,787 and $249,057, respectively
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2,202,755
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1,932,764
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Deferred leasing intangibles, net of accumulated amortization of $237,892 and $280,642, respectively
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327,734
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313,253
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Total rental property, net
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2,886,079
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2,567,577
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Cash and cash equivalents
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6,024
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24,562
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Restricted cash
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5,231
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3,567
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Tenant accounts receivable, net
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39,170
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33,602
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Prepaid expenses and other assets
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35,122
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25,364
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Interest rate swaps
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17,649
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6,079
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Assets held for sale, net
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—
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19,916
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Total assets
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$
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2,989,275
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$
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2,680,667
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Liabilities and Equity
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||||
Liabilities:
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||||
Unsecured credit facility
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$
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95,000
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$
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271,000
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Unsecured term loans, net
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596,085
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446,265
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Unsecured notes, net
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572,389
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398,234
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Mortgage notes, net
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56,993
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58,282
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Accounts payable, accrued expenses and other liabilities
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53,445
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43,216
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Interest rate swaps
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—
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1,217
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Tenant prepaid rent and security deposits
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19,328
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19,045
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Dividends and distributions payable
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14,530
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11,880
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Deferred leasing intangibles, net of accumulated amortization of $13,043 and $13,555, respective
ly
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20,708
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21,221
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Total liabilities
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1,428,478
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1,270,360
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Commitments and contingencies (Note 10)
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Equity:
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Preferred stock, par value $0.01 per share, 15,000,000 shares authorized,
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Series B, -0- and 2,800,000 shares (liquidation preference of $25.00 per share) issued and outstanding at September 30, 2018 and December 31, 2017, respectively
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—
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70,000
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Series C, 3,000,000 shares (liquidation preference of $25.00 per share) issued and outstanding at September 30, 2018 and December 31, 2017
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75,000
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75,000
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Common stock, par value $0.01 per share, 150,000,000 shares authorized, 107,825,791 and 97,012,543 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively
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1,078
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970
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Additional paid-in capital
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2,003,983
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1,725,825
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Cumulative dividends in excess of earnings
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(589,785
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)
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(516,691
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)
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Accumulated other comprehensive income
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16,485
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3,936
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Total stockholders’ equity
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1,506,761
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1,359,040
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Noncontrolling interest
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54,036
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51,267
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Total equity
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1,560,797
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1,410,307
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Total liabilities and equity
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$
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2,989,275
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$
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2,680,667
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Three months ended September 30,
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Nine months ended September 30,
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||||||||||||
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2018
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2017
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2018
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2017
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||||||||
Revenue
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|||||
Rental income
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$
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75,159
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$
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65,673
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$
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217,227
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$
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186,621
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Tenant recoveries
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13,518
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12,366
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39,443
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32,952
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Other income
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269
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105
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1,033
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244
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Total revenue
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88,946
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78,144
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257,703
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219,817
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Expenses
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Property
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17,112
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15,401
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50,735
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42,312
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General and administrative
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8,911
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8,380
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25,637
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25,090
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||||
Property acquisition costs
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—
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1,386
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—
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4,684
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||||
Depreciation and amortization
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44,355
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38,186
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125,221
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110,286
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|
||||
Loss on impairments
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—
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—
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2,934
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—
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Loss on involuntary conversion
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—
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—
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—
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330
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|
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Other expenses
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223
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58
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864
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1,502
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Total expenses
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70,601
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63,411
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205,391
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184,204
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||||
Other income (expense)
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Interest and other income
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3
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2
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16
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10
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Interest expense
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(12,698
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)
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(10,446
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)
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(35,602
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)
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(31,557
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)
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||||
Loss on extinguishment of debt
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(13
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)
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(13
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)
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(13
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)
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(15
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)
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||||
Gain on the sales of rental property, net
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3,239
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17,563
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32,276
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19,225
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||||
Total other income (expense)
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(9,469
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)
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7,106
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(3,323
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)
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(12,337
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)
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||||
Net income
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$
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8,876
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$
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21,839
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$
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48,989
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$
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23,276
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Less: income attributable to noncontrolling interest after preferred stock dividends
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281
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828
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1,589
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673
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||||
Net income attributable to STAG Industrial, Inc.
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$
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8,595
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$
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21,011
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$
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47,400
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$
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22,603
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Less: preferred stock dividends
|
1,289
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|
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2,449
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6,315
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|
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7,345
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|
||||
Less: redemption of preferred stock
|
—
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—
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2,661
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|
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—
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|
||||
Less: amount allocated to participating securities
|
69
|
|
|
84
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|
|
209
|
|
|
250
|
|
||||
Net income attributable to common stockholders
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$
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7,237
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$
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18,478
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$
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38,215
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$
|
15,008
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Weighted average common shares outstanding — basic
|
105,783
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92,787
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101,095
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87,632
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|
||||
Weighted average common shares outstanding — diluted
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106,333
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93,435
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101,495
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88,238
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|
||||
Net income per share — basic and diluted
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|||||
Net income per share attributable to common stockholders — basic
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$
|
0.07
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$
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0.20
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|
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$
|
0.38
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|
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$
|
0.17
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Net income per share attributable to common stockholders — diluted
|
$
|
0.07
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|
|
$
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0.20
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|
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$
|
0.38
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|
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$
|
0.17
|
|
|
Three months ended September 30,
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Nine months ended September 30,
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||||||||||||
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2018
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2017
|
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2018
|
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2017
|
||||||||
Net income
|
$
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8,876
|
|
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$
|
21,839
|
|
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$
|
48,989
|
|
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$
|
23,276
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
||||||||
Income on interest rate swaps
|
2,060
|
|
|
598
|
|
|
12,811
|
|
|
300
|
|
||||
Other comprehensive income
|
2,060
|
|
|
598
|
|
|
12,811
|
|
|
300
|
|
||||
Comprehensive income
|
10,936
|
|
|
22,437
|
|
|
61,800
|
|
|
23,576
|
|
||||
Income attributable to noncontrolling interest after preferred stock dividends
|
(281
|
)
|
|
(828
|
)
|
|
(1,589
|
)
|
|
(673
|
)
|
||||
Other comprehensive income attributable to noncontrolling interest
|
(76
|
)
|
|
(26
|
)
|
|
(509
|
)
|
|
(13
|
)
|
||||
Comprehensive income attributable to STAG Industrial, Inc.
|
$
|
10,579
|
|
|
$
|
21,583
|
|
|
$
|
59,702
|
|
|
$
|
22,890
|
|
|
Preferred Stock
|
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Cumulative Dividends in excess of Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Total Stockholders' Equity
|
|
Noncontrolling Interest - Unit holders in Operating Partnership
|
|
Total Equity
|
|||||||||||||||||||
|
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Shares
|
|
Amount
|
|
|
|
|
|
|
||||||||||||||||||||||||
Nine months ended September 30, 2018
|
|
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|
|
|
|
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|
|
|
|
|
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|
|
|
|||||||||||||||||
Balance, December 31, 2017
|
$
|
145,000
|
|
|
97,012,543
|
|
|
$
|
970
|
|
|
$
|
1,725,825
|
|
|
$
|
(516,691
|
)
|
|
$
|
3,936
|
|
|
$
|
1,359,040
|
|
|
$
|
51,267
|
|
|
$
|
1,410,307
|
|
Cash flow hedging instruments cumulative effect adjustment (Note 2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(258
|
)
|
|
247
|
|
|
(11
|
)
|
|
11
|
|
|
—
|
|
||||||||
Proceeds from sales of common stock
|
—
|
|
|
10,387,962
|
|
|
104
|
|
|
276,353
|
|
|
—
|
|
|
—
|
|
|
276,457
|
|
|
—
|
|
|
276,457
|
|
||||||||
Redemption of preferred stock
|
(70,000
|
)
|
|
—
|
|
|
—
|
|
|
5,141
|
|
|
(5,158
|
)
|
|
—
|
|
|
(70,017
|
)
|
|
—
|
|
|
(70,017
|
)
|
||||||||
Offering costs
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,129
|
)
|
|
—
|
|
|
—
|
|
|
(3,129
|
)
|
|
—
|
|
|
(3,129
|
)
|
||||||||
Dividends and distributions, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(114,541
|
)
|
|
—
|
|
|
(114,541
|
)
|
|
(5,253
|
)
|
|
(119,794
|
)
|
||||||||
Non-cash compensation activity, net
|
—
|
|
|
73,231
|
|
|
1
|
|
|
1,829
|
|
|
(537
|
)
|
|
—
|
|
|
1,293
|
|
|
3,880
|
|
|
5,173
|
|
||||||||
Redemption of common units to common stock
|
—
|
|
|
352,055
|
|
|
3
|
|
|
4,398
|
|
|
—
|
|
|
—
|
|
|
4,401
|
|
|
(4,401
|
)
|
|
—
|
|
||||||||
Rebalancing of noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,434
|
)
|
|
—
|
|
|
—
|
|
|
(6,434
|
)
|
|
6,434
|
|
|
—
|
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,302
|
|
|
12,302
|
|
|
509
|
|
|
12,811
|
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47,400
|
|
|
—
|
|
|
47,400
|
|
|
1,589
|
|
|
48,989
|
|
||||||||
Balance, September 30, 2018
|
$
|
75,000
|
|
|
107,825,791
|
|
|
$
|
1,078
|
|
|
$
|
2,003,983
|
|
|
$
|
(589,785
|
)
|
|
$
|
16,485
|
|
|
$
|
1,506,761
|
|
|
$
|
54,036
|
|
|
$
|
1,560,797
|
|
Nine months ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance, December 31, 2016
|
$
|
145,000
|
|
|
80,352,304
|
|
|
$
|
804
|
|
|
$
|
1,293,706
|
|
|
$
|
(410,978
|
)
|
|
$
|
(1,496
|
)
|
|
$
|
1,027,036
|
|
|
$
|
39,890
|
|
|
$
|
1,066,926
|
|
Proceeds from sales of common stock
|
—
|
|
|
13,165,996
|
|
|
132
|
|
|
339,492
|
|
|
—
|
|
|
—
|
|
|
339,624
|
|
|
—
|
|
|
339,624
|
|
||||||||
Offering costs
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,746
|
)
|
|
—
|
|
|
—
|
|
|
(4,746
|
)
|
|
—
|
|
|
(4,746
|
)
|
||||||||
Dividends and distributions, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(100,509
|
)
|
|
—
|
|
|
(100,509
|
)
|
|
(4,932
|
)
|
|
(105,441
|
)
|
||||||||
Non-cash compensation activity, net
|
—
|
|
|
43,492
|
|
|
—
|
|
|
2,911
|
|
|
(194
|
)
|
|
—
|
|
|
2,717
|
|
|
3,509
|
|
|
6,226
|
|
||||||||
Redemption of common units to common stock
|
—
|
|
|
300,991
|
|
|
3
|
|
|
3,314
|
|
|
—
|
|
|
—
|
|
|
3,317
|
|
|
(3,317
|
)
|
|
—
|
|
||||||||
Issuance of units
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,558
|
|
|
18,558
|
|
||||||||
Rebalancing of noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
3,632
|
|
|
—
|
|
|
—
|
|
|
3,632
|
|
|
(3,632
|
)
|
|
—
|
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
287
|
|
|
287
|
|
|
13
|
|
|
300
|
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22,603
|
|
|
—
|
|
|
22,603
|
|
|
673
|
|
|
23,276
|
|
||||||||
Balance, September 30, 2017
|
$
|
145,000
|
|
|
93,862,783
|
|
|
$
|
939
|
|
|
$
|
1,638,309
|
|
|
$
|
(489,078
|
)
|
|
$
|
(1,209
|
)
|
|
$
|
1,293,961
|
|
|
$
|
50,762
|
|
|
$
|
1,344,723
|
|
|
Nine months ended September 30,
|
||||||
|
2018
|
|
2017
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
48,989
|
|
|
$
|
23,276
|
|
Adjustment to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
125,221
|
|
|
110,286
|
|
||
Loss on impairments
|
2,934
|
|
|
—
|
|
||
Loss on involuntary conversion
|
—
|
|
|
330
|
|
||
Non-cash portion of interest expense
|
1,698
|
|
|
1,465
|
|
||
Intangible amortization in rental income, net
|
3,206
|
|
|
3,873
|
|
||
Straight-line rent adjustments, net
|
(8,297
|
)
|
|
(4,855
|
)
|
||
Dividends on forfeited equity compensation
|
15
|
|
|
2
|
|
||
Loss on extinguishment of debt
|
13
|
|
|
15
|
|
||
Gain on the sales of rental property, net
|
(32,276
|
)
|
|
(19,225
|
)
|
||
Non-cash compensation expense
|
6,671
|
|
|
7,159
|
|
||
Change in assets and liabilities:
|
|
|
|
||||
Tenant accounts receivable, net
|
501
|
|
|
(955
|
)
|
||
Prepaid expenses and other assets
|
(9,597
|
)
|
|
(10,479
|
)
|
||
Accounts payable, accrued expenses and other liabilities
|
9,249
|
|
|
5,572
|
|
||
Tenant prepaid rent and security deposits
|
283
|
|
|
3,570
|
|
||
Total adjustments
|
99,621
|
|
|
96,758
|
|
||
Net cash provided by operating activities
|
148,610
|
|
|
120,034
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Acquisitions of land and buildings and improvements
|
(382,981
|
)
|
|
(405,790
|
)
|
||
Additions of land and building and improvements
|
(23,578
|
)
|
|
(27,539
|
)
|
||
Acquisitions of other assets
|
(794
|
)
|
|
—
|
|
||
Acquisitions of other liabilities
|
242
|
|
|
—
|
|
||
Proceeds from sales of rental property, net
|
89,407
|
|
|
43,454
|
|
||
Proceeds from insurance on involuntary conversion
|
—
|
|
|
857
|
|
||
Acquisition deposits, net
|
(695
|
)
|
|
685
|
|
||
Acquisitions of deferred leasing intangibles
|
(74,851
|
)
|
|
(79,961
|
)
|
||
Net cash used in investing activities
|
(393,250
|
)
|
|
(468,294
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from unsecured credit facility
|
643,000
|
|
|
538,000
|
|
||
Repayment of unsecured credit facility
|
(819,000
|
)
|
|
(321,000
|
)
|
||
Proceeds from unsecured term loans
|
150,000
|
|
|
—
|
|
||
Proceeds from unsecured notes
|
175,000
|
|
|
—
|
|
||
Repayment of mortgage notes
|
(1,379
|
)
|
|
(105,027
|
)
|
||
Payment of loan fees and costs
|
(4,451
|
)
|
|
(1,185
|
)
|
||
Proceeds from sales of common stock
|
276,457
|
|
|
339,624
|
|
||
Redemption of preferred stock
|
(70,000
|
)
|
|
—
|
|
||
Offering costs
|
(3,191
|
)
|
|
(4,746
|
)
|
||
Dividends and distributions
|
(117,146
|
)
|
|
(103,655
|
)
|
||
Repurchase and retirement of share-based compensation
|
(1,524
|
)
|
|
(969
|
)
|
||
Net cash provided by financing activities
|
227,766
|
|
|
341,042
|
|
||
Decrease in cash and cash equivalents and restricted cash
|
(16,874
|
)
|
|
(7,218
|
)
|
||
Cash and cash equivalents and restricted cash—beginning of period
|
28,129
|
|
|
21,805
|
|
||
Cash and cash equivalents and restricted cash—end of period
|
$
|
11,255
|
|
|
$
|
14,587
|
|
Supplemental disclosure:
|
|
|
|
||||
Cash paid for interest, net of capitalized interest
|
$
|
31,875
|
|
|
$
|
30,476
|
|
Supplemental schedule of non-cash investing and financing activities
|
|
|
|
||||
Issuance of units for acquisitions of land and building and improvements and deferred leasing intangibles
|
$
|
—
|
|
|
$
|
18,558
|
|
Acquisitions of land and buildings and improvements
|
$
|
(232
|
)
|
|
$
|
(17,304
|
)
|
Acquisitions of deferred leasing intangibles
|
$
|
(48
|
)
|
|
$
|
(2,064
|
)
|
Partial disposal of building due to involuntary conversion of building
|
$
|
—
|
|
|
$
|
363
|
|
Investing other receivables due to involuntary conversion of building
|
$
|
—
|
|
|
$
|
(363
|
)
|
Change in additions of land, building, and improvements included in accounts payable, accrued expenses, and other liabilities
|
$
|
(1,475
|
)
|
|
$
|
(13,201
|
)
|
Additions to building and other capital improvements from non-cash compensation
|
$
|
(20
|
)
|
|
$
|
(24
|
)
|
Change in loan fees, costs, and offering costs included in accounts payable, accrued expenses, and other liabilities
|
$
|
48
|
|
|
$
|
30
|
|
Reclassification of preferred stock called for redemption to liability
|
$
|
70,000
|
|
|
$
|
—
|
|
Dividends and distributions accrued
|
$
|
14,530
|
|
|
$
|
11,516
|
|
Reconciliation of cash and cash equivalents and restricted cash (in thousands)
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
Cash and cash equivalents
|
|
$
|
6,024
|
|
|
$
|
24,562
|
|
Restricted cash
|
|
5,231
|
|
|
3,567
|
|
||
Total cash and cash equivalents and restricted cash
|
|
$
|
11,255
|
|
|
$
|
28,129
|
|
Rental Property (in thousands)
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
Land
|
|
$
|
355,590
|
|
|
$
|
321,560
|
|
Buildings, net of accumulated depreciation of $190,538 and $160,281, respectivel
y
|
|
2,006,013
|
|
|
1,756,579
|
|
||
Tenant improvements, net of accumulated depreciation of $35,495 and $32,714, respectively
|
|
30,577
|
|
|
30,138
|
|
||
Building and land improvements, net of accumulated depreciation of $75,754 and $56,062, respectivel
y
|
|
160,496
|
|
|
143,170
|
|
||
Construction in progress
|
|
5,669
|
|
|
2,877
|
|
||
Deferred leasing intangibles, net of accumulated amortization of $237,892 and $280,642, respectively
|
|
327,734
|
|
|
313,253
|
|
||
Total rental property, net
|
|
$
|
2,886,079
|
|
|
$
|
2,567,577
|
|
Market
(1)
|
|
Date Acquired
|
|
Square Feet
|
|
Buildings
|
|
Purchase Price
(in thousands) |
||||
Greenville/Spartanburg, SC
|
|
January 11, 2018
|
|
203,000
|
|
|
1
|
|
|
$
|
10,755
|
|
Minneapolis/St Paul, MN
|
|
January 26, 2018
|
|
145,351
|
|
|
1
|
|
|
13,538
|
|
|
Philadelphia, PA
|
|
February 1, 2018
|
|
278,582
|
|
|
1
|
|
|
18,277
|
|
|
Houston, TX
|
|
February 22, 2018
|
|
242,225
|
|
|
2
|
|
|
22,478
|
|
|
Greenville/Spartanburg, SC
|
|
March 30, 2018
|
|
222,710
|
|
|
1
|
|
|
13,773
|
|
|
Three months ended March 31, 2018
|
|
|
|
1,091,868
|
|
|
6
|
|
|
78,821
|
|
|
Chicago, IL
|
|
April 23, 2018
|
|
169,311
|
|
|
2
|
|
|
10,975
|
|
|
Milwaukee/Madison, WI
|
|
April 26, 2018
|
|
53,680
|
|
|
1
|
|
|
4,316
|
|
|
Pittsburgh, PA
|
|
April 30, 2018
|
|
175,000
|
|
|
1
|
|
|
15,380
|
|
|
Detroit, MI
|
|
May 9, 2018
|
|
274,500
|
|
|
1
|
|
|
19,328
|
|
|
Minneapolis/St Paul, MN
|
|
May 15, 2018
|
|
509,910
|
|
|
2
|
|
|
26,983
|
|
|
Cincinnati/Dayton, OH
|
|
May 23, 2018
|
|
158,500
|
|
|
1
|
|
|
7,317
|
|
|
Baton Rouge, LA
|
|
May 31, 2018
|
|
279,236
|
|
|
1
|
|
|
21,379
|
|
|
Las Vegas, NV
|
|
June 12, 2018
|
|
122,472
|
|
|
1
|
|
|
17,920
|
|
|
Greenville/Spartanburg, SC
|
|
June 15, 2018
|
|
131,805
|
|
|
1
|
|
|
5,621
|
|
|
Denver, CO
|
|
June 18, 2018
|
|
64,750
|
|
|
1
|
|
|
7,044
|
|
|
Cincinnati/Dayton, OH
|
|
June 25, 2018
|
|
465,136
|
|
|
1
|
|
|
16,421
|
|
|
Charlotte, NC
|
|
June 29, 2018
|
|
69,200
|
|
|
1
|
|
|
5,446
|
|
|
Houston, TX
|
|
June 29, 2018
|
|
252,662
|
|
|
1
|
|
|
27,170
|
|
|
Three months ended June 30, 2018
|
|
|
|
2,726,162
|
|
|
15
|
|
|
185,300
|
|
|
Knoxville, TN
|
|
July 10, 2018
|
|
106,000
|
|
|
1
|
|
|
6,477
|
|
|
Pittsburgh, PA
|
|
August 2, 2018
|
|
265,568
|
|
|
1
|
|
|
19,186
|
|
|
Raleigh/Durham, NC
|
|
August 2, 2018
|
|
365,000
|
|
|
1
|
|
|
21,067
|
|
|
Detroit, MI
|
|
August 6, 2018
|
|
439,150
|
|
|
1
|
|
|
21,077
|
|
|
Des Moines, IA
|
|
August 8, 2018
|
|
121,922
|
|
|
1
|
|
|
6,053
|
|
|
McAllen/Edinburg/Pharr, TX
|
|
August 9, 2018
|
|
270,084
|
|
|
1
|
|
|
18,523
|
|
|
Pittsburgh, PA
|
|
August 15, 2018
|
|
200,500
|
|
|
1
|
|
|
11,327
|
|
|
Minneapolis/St Paul, MN
|
|
August 24, 2018
|
|
120,606
|
|
|
1
|
|
|
8,422
|
|
|
Milwaukee/Madison, WI
|
|
September 28, 2018
|
|
100,800
|
|
|
1
|
|
|
7,484
|
|
|
Milwaukee/Madison, WI
|
|
September 28, 2018
|
|
174,633
|
|
|
2
|
|
|
13,288
|
|
|
Chicago, IL
|
|
September 28, 2018
|
|
105,637
|
|
|
1
|
|
|
6,368
|
|
|
Indianapolis, IN
|
|
September 28, 2018
|
|
478,721
|
|
|
1
|
|
|
29,085
|
|
|
Augusta/Richmond County, GA
|
|
September 28, 2018
|
|
203,726
|
|
|
1
|
|
|
9,379
|
|
|
Charlotte, NC
|
|
September 28, 2018
|
|
301,000
|
|
|
1
|
|
|
16,807
|
|
|
Three months ended September 30, 2018
|
|
|
|
3,253,347
|
|
|
15
|
|
|
194,543
|
|
|
Nine months ended September 30, 2018
|
|
|
|
7,071,377
|
|
|
36
|
|
|
$
|
458,664
|
|
Acquired Assets and Liabilities
|
|
Purchase Price (in thousands)
|
|
Weighted Average Amortization Period (years) of Intangibles at Acquisition
|
||
Land
|
|
$
|
39,340
|
|
|
N/A
|
Buildings
|
|
317,293
|
|
|
N/A
|
|
Tenant improvements
|
|
4,849
|
|
|
N/A
|
|
Building and land improvements
|
|
21,731
|
|
|
N/A
|
|
Deferred leasing intangibles - In-place leases
|
|
52,276
|
|
|
8.7
|
|
Deferred leasing intangibles - Tenant relationships
|
|
21,861
|
|
|
11.8
|
|
Deferred leasing intangibles - Above market leases
|
|
4,062
|
|
|
8.2
|
|
Deferred leasing intangibles - Below market leases
|
|
(3,122
|
)
|
|
6.7
|
|
Deferred leasing intangibles - Above market ground leases
|
|
(178
|
)
|
|
48.1
|
|
Other assets
|
|
794
|
|
|
N/A
|
|
Other liabilities
|
|
(242
|
)
|
|
N/A
|
|
Total purchase price
|
|
$
|
458,664
|
|
|
|
Results of Operations (in thousands)
|
|
Three months ended September 30, 2018
|
|
Nine months ended September 30, 2018
|
||||
Total revenue
|
|
$
|
7,122
|
|
|
$
|
11,156
|
|
Net income
|
|
$
|
1,556
|
|
|
$
|
1,642
|
|
Market
(1)
|
|
Buildings
|
|
Event or Change in Circumstance Leading to Impairment Evaluation
(2)
|
|
Valuation technique utilized to estimate fair value
|
|
Fair Value
(3)
|
|
Loss on Impairments
|
||||
(in thousands)
|
||||||||||||||
Buena Vista, VA
(4)
|
|
1
|
|
Change in estimated hold period
|
(5)
|
Discounted cash flows
|
(6)
|
|
|
|
||||
Sergeant Bluff, IA
(4)
|
|
1
|
|
Change in estimated hold period
|
(5)
|
Discounted cash flows
|
(6)
|
|
|
|
||||
Three months ended March 31, 2018
|
|
|
|
$
|
3,176
|
|
|
$
|
2,934
|
|
||||
Nine months ended September 30, 2018
|
|
|
|
$
|
3,176
|
|
|
$
|
2,934
|
|
(1)
|
As defined by CoStar Realty Information Inc.
|
(2)
|
The Company tested the asset group for impairment utilizing a probability weighted recovery analysis of certain scenarios, and it was determined that the carrying value of the property and intangibles were not recoverable from the estimated future undiscounted cash flows.
|
(3)
|
The estimated fair value of the assets held and used is based on Level 3 inputs and is a non-recurring fair value measurement. Level 3 is defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
|
(4)
|
These buildings do not have markets as defined by CoStar Realty Information Inc.
|
(5)
|
This property was sold during the
nine
months ended
September 30, 2018
.
|
(6)
|
Level 3 inputs used to determine fair value for the impaired assets held and used for the three months ended March 31, 2018: discount rates ranged from
11.0%
to
14.5%
and exit capitalization rates ranged from
11.0%
to
13.0%
.
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
Deferred Leasing Intangibles (in thousands)
|
|
Gross
|
|
Accumulated Amortization
|
|
Net
|
|
Gross
|
|
Accumulated Amortization
|
|
Net
|
||||||||||||
Above market leases
|
|
$
|
70,454
|
|
|
$
|
(31,663
|
)
|
|
$
|
38,791
|
|
|
$
|
78,558
|
|
|
$
|
(36,810
|
)
|
|
$
|
41,748
|
|
Other intangible lease assets
|
|
495,172
|
|
|
(206,229
|
)
|
|
288,943
|
|
|
515,337
|
|
|
(243,832
|
)
|
|
271,505
|
|
||||||
Total deferred leasing intangible assets
|
|
$
|
565,626
|
|
|
$
|
(237,892
|
)
|
|
$
|
327,734
|
|
|
$
|
593,895
|
|
|
$
|
(280,642
|
)
|
|
$
|
313,253
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Below market leases
|
|
$
|
33,751
|
|
|
$
|
(13,043
|
)
|
|
$
|
20,708
|
|
|
$
|
34,776
|
|
|
$
|
(13,555
|
)
|
|
$
|
21,221
|
|
Total deferred leasing intangible liabilities
|
|
$
|
33,751
|
|
|
$
|
(13,043
|
)
|
|
$
|
20,708
|
|
|
$
|
34,776
|
|
|
$
|
(13,555
|
)
|
|
$
|
21,221
|
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
Deferred Leasing Intangibles Amortization (in thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net decrease to rental income related to above and below market lease amortization
|
|
$
|
1,150
|
|
|
$
|
1,318
|
|
|
$
|
3,206
|
|
|
$
|
3,873
|
|
Amortization expense related to other intangible lease assets
|
|
$
|
20,361
|
|
|
$
|
17,934
|
|
|
$
|
56,698
|
|
|
$
|
53,747
|
|
Year
|
|
Amortization Expense Related to Other Intangible Lease Assets (in thousands)
|
|
Net Decrease to Rental Income Related to Above and Below Market Lease Amortization (in thousands)
|
||||
Remainder of 2018
|
|
$
|
17,263
|
|
|
$
|
927
|
|
2019
|
|
$
|
57,841
|
|
|
$
|
3,926
|
|
2020
|
|
$
|
47,750
|
|
|
$
|
3,546
|
|
2021
|
|
$
|
37,229
|
|
|
$
|
2,163
|
|
2022
|
|
$
|
29,690
|
|
|
$
|
1,154
|
|
Loan
|
|
Principal Outstanding as of September 30, 2018 (in thousands)
|
|
Principal Outstanding as of December 31, 2017 (in thousands)
|
|
Interest
Rate (1) |
|
Maturity Date
|
|
Prepayment Terms
(2)
|
|||||
Unsecured credit facility:
|
|
|
|
|
|
|
|
|
|
|
|||||
Unsecured Credit Facility
(3)
|
|
$
|
95,000
|
|
|
$
|
271,000
|
|
|
L + 1.05%
|
|
|
Jan-15-2023
|
|
i
|
Total unsecured credit facility
|
|
95,000
|
|
|
271,000
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|||||
Unsecured term loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Unsecured Term Loan C
|
|
150,000
|
|
|
150,000
|
|
|
L + 1.30%
|
|
|
Sep-29-2020
|
|
i
|
||
Unsecured Term Loan B
|
|
150,000
|
|
|
150,000
|
|
|
L + 1.30%
|
|
|
Mar-21-2021
|
|
i
|
||
Unsecured Term Loan A
|
|
150,000
|
|
|
150,000
|
|
|
L + 1.30%
|
|
|
Mar-31-2022
|
|
i
|
||
Unsecured Term Loan D
|
|
150,000
|
|
|
—
|
|
|
L + 1.30%
|
|
|
Jan-04-2023
|
|
i
|
||
Unsecured Term Loan E
(4)
|
|
—
|
|
|
—
|
|
|
L + 1.20%
|
|
|
Jan-15-2024
|
|
i
|
||
Total unsecured term loans
|
|
600,000
|
|
|
450,000
|
|
|
|
|
|
|
|
|
||
Less: Total unamortized deferred financing fees and debt issuance costs
|
|
(3,915
|
)
|
|
(3,735
|
)
|
|
|
|
|
|
|
|
||
Total carrying value unsecured term loans, net
|
|
596,085
|
|
|
446,265
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|||||
Unsecured notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Series F Unsecured Notes
|
|
100,000
|
|
|
100,000
|
|
|
3.98
|
%
|
|
Jan-05-2023
|
|
ii
|
||
Series A Unsecured Notes
|
|
50,000
|
|
|
50,000
|
|
|
4.98
|
%
|
|
Oct-1-2024
|
|
ii
|
||
Series D Unsecured Notes
|
|
100,000
|
|
|
100,000
|
|
|
4.32
|
%
|
|
Feb-20-2025
|
|
ii
|
||
Series G Unsecured Notes
|
|
75,000
|
|
|
—
|
|
|
4.10
|
%
|
|
Jun-13-2025
|
|
ii
|
||
Series B Unsecured Notes
|
|
50,000
|
|
|
50,000
|
|
|
4.98
|
%
|
|
Jul-1-2026
|
|
ii
|
||
Series C Unsecured Notes
|
|
80,000
|
|
|
80,000
|
|
|
4.42
|
%
|
|
Dec-30-2026
|
|
ii
|
||
Series E Unsecured Notes
|
|
20,000
|
|
|
20,000
|
|
|
4.42
|
%
|
|
Feb-20-2027
|
|
ii
|
||
Series H Unsecured Notes
|
|
100,000
|
|
|
—
|
|
|
4.27
|
%
|
|
Jun-13-2028
|
|
ii
|
||
Total unsecured notes
|
|
575,000
|
|
|
400,000
|
|
|
|
|
|
|
|
|
||
Less: Total unamortized deferred financing fees and debt issuance costs
|
|
(2,611
|
)
|
|
(1,766
|
)
|
|
|
|
|
|
|
|
||
Total carrying value unsecured notes, net
|
|
572,389
|
|
|
398,234
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|||||
Mortgage notes (secured debt):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Wells Fargo Bank, National Association CMBS Loan
|
|
53,652
|
|
|
54,949
|
|
|
4.31
|
%
|
|
Dec-1-2022
|
|
iii
|
||
Thrivent Financial for Lutherans
|
|
3,824
|
|
|
3,906
|
|
|
4.78
|
%
|
|
Dec-15-2023
|
|
iv
|
||
Total mortgage notes
|
|
57,476
|
|
|
58,855
|
|
|
|
|
|
|
|
|
||
Add: Total unamortized fair market value premiums
|
|
52
|
|
|
61
|
|
|
|
|
|
|
|
|
||
Less: Total unamortized deferred financing fees and debt issuance costs
|
|
(535
|
)
|
|
(634
|
)
|
|
|
|
|
|
|
|
||
Total carrying value mortgage notes, net
|
|
56,993
|
|
|
58,282
|
|
|
|
|
|
|
|
|
||
Total / weighted average interest rate
(5)
|
|
$
|
1,320,467
|
|
|
$
|
1,173,781
|
|
|
3.69
|
%
|
|
|
|
|
(1)
|
Interest rate as of
September 30, 2018
. At
September 30, 2018
, the one-month LIBOR (“L”) was
2.26056%
. The interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums. The spread over the applicable rate for the Company's unsecured credit facility and unsecured term loans is based on the Company's consolidated leverage ratio, as defined in the respective loan agreements.
|
(2)
|
Prepayment terms consist of (i) pre-payable with no penalty; (ii) pre-payable with penalty; (iii) pre-payable without penalty
three
months prior to the maturity date, however can be defeased beginning January 1, 2016; and (iv) pre-payable without penalty
three
months prior to the maturity date.
|
(3)
|
The capacity of the unsecured credit facility is
$500.0 million
. Deferred financing fees and debt issuance costs, net of accumulated amortization related to the unsecured credit facility of approximately
$3.4 million
and
$1.5 million
is included in prepaid expenses and other assets on the accompanying Consolidated Balance Sheets as of
September 30, 2018
and
December 31, 2017
, respectively.
|
(4)
|
Capacity of
$175.0 million
, which the Company has until July 25, 2019 to draw.
|
(5)
|
The weighted average interest rate was calculated using the fixed interest rate swapped on the notional amount of
$600.0 million
of debt that was in effect as of
September 30, 2018
, and is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums.
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
Costs Included in Interest Expense (in thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Amortization of deferred financing fees and debt issuance costs and fair market value premiums
|
|
$
|
617
|
|
|
$
|
546
|
|
|
$
|
1,698
|
|
|
$
|
1,553
|
|
Facility fees and unused fees
|
|
$
|
275
|
|
|
$
|
286
|
|
|
$
|
928
|
|
|
$
|
839
|
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||
|
|
Principal Outstanding
|
|
Fair Value
|
|
Principal Outstanding
|
|
Fair Value
|
||||||||
Unsecured credit facility
|
|
$
|
95,000
|
|
|
$
|
95,000
|
|
|
$
|
271,000
|
|
|
$
|
271,528
|
|
Unsecured term loans
|
|
600,000
|
|
|
607,663
|
|
|
450,000
|
|
|
451,463
|
|
||||
Unsecured notes
|
|
575,000
|
|
|
569,493
|
|
|
400,000
|
|
|
415,599
|
|
||||
Mortgage notes
|
|
57,476
|
|
|
57,608
|
|
|
58,855
|
|
|
59,769
|
|
||||
Total principal amount
|
|
1,327,476
|
|
|
$
|
1,329,764
|
|
|
1,179,855
|
|
|
$
|
1,198,359
|
|
||
Add: Total unamortized fair market value premiums
|
|
52
|
|
|
|
|
61
|
|
|
|
||||||
Less: Total unamortized deferred financing fees and debt issuance costs
|
|
(7,061
|
)
|
|
|
|
(6,135
|
)
|
|
|
||||||
Total carrying value
|
|
$
|
1,320,467
|
|
|
|
|
$
|
1,173,781
|
|
|
|
Interest Rate
Derivative Counterparty |
|
Trade Date
|
|
Effective Date
|
|
Notional Amount
(in thousands) |
|
Fair Value
(in thousands) |
|
Pay Fixed Interest Rate
|
|
Receive Variable Interest Rate
|
|
Maturity Date
|
|||||
Regions Bank
|
|
Mar-01-2013
|
|
Mar-01-2013
|
|
$
|
25,000
|
|
|
$
|
471
|
|
|
1.3300
|
%
|
|
One-month L
|
|
Feb-14-2020
|
Capital One, N.A.
|
|
Jun-13-2013
|
|
Jul-01-2013
|
|
$
|
50,000
|
|
|
$
|
703
|
|
|
1.6810
|
%
|
|
One-month L
|
|
Feb-14-2020
|
Capital One, N.A.
|
|
Jun-13-2013
|
|
Aug-01-2013
|
|
$
|
25,000
|
|
|
$
|
344
|
|
|
1.7030
|
%
|
|
One-month L
|
|
Feb-14-2020
|
Regions Bank
|
|
Sep-30-2013
|
|
Feb-03-2014
|
|
$
|
25,000
|
|
|
$
|
245
|
|
|
1.9925
|
%
|
|
One-month L
|
|
Feb-14-2020
|
The Toronto-Dominion Bank
|
|
Oct-14-2015
|
|
Sep-29-2016
|
|
$
|
25,000
|
|
|
$
|
700
|
|
|
1.3830
|
%
|
|
One-month L
|
|
Sep-29-2020
|
PNC Bank, N.A.
|
|
Oct-14-2015
|
|
Sep-29-2016
|
|
$
|
50,000
|
|
|
$
|
1,391
|
|
|
1.3906
|
%
|
|
One-month L
|
|
Sep-29-2020
|
Regions Bank
|
|
Oct-14-2015
|
|
Sep-29-2016
|
|
$
|
35,000
|
|
|
$
|
978
|
|
|
1.3858
|
%
|
|
One-month L
|
|
Sep-29-2020
|
U.S. Bank, N.A.
|
|
Oct-14-2015
|
|
Sep-29-2016
|
|
$
|
25,000
|
|
|
$
|
695
|
|
|
1.3950
|
%
|
|
One-month L
|
|
Sep-29-2020
|
Capital One, N.A.
|
|
Oct-14-2015
|
|
Sep-29-2016
|
|
$
|
15,000
|
|
|
$
|
417
|
|
|
1.3950
|
%
|
|
One-month L
|
|
Sep-29-2020
|
Royal Bank of Canada
|
|
Jan-08-2015
|
|
Mar-20-2015
|
|
$
|
25,000
|
|
|
$
|
684
|
|
|
1.7090
|
%
|
|
One-month L
|
|
Mar-21-2021
|
The Toronto-Dominion Bank
|
|
Jan-08-2015
|
|
Mar-20-2015
|
|
$
|
25,000
|
|
|
$
|
682
|
|
|
1.7105
|
%
|
|
One-month L
|
|
Mar-21-2021
|
The Toronto-Dominion Bank
|
|
Jan-08-2015
|
|
Sep-10-2017
|
|
$
|
100,000
|
|
|
$
|
1,488
|
|
|
2.2255
|
%
|
|
One-month L
|
|
Mar-21-2021
|
Wells Fargo, N.A.
|
|
Jan-08-2015
|
|
Mar-20-2015
|
|
$
|
25,000
|
|
|
$
|
886
|
|
|
1.8280
|
%
|
|
One-month L
|
|
Mar-31-2022
|
The Toronto-Dominion Bank
|
|
Jan-08-2015
|
|
Feb-14-2020
|
|
$
|
25,000
|
|
|
$
|
271
|
|
|
2.4535
|
%
|
|
One-month L
|
|
Mar-31-2022
|
Regions Bank
|
|
Jan-08-2015
|
|
Feb-14-2020
|
|
$
|
50,000
|
|
|
$
|
520
|
|
|
2.4750
|
%
|
|
One-month L
|
|
Mar-31-2022
|
Capital One, N.A.
|
|
Jan-08-2015
|
|
Feb-14-2020
|
|
$
|
50,000
|
|
|
$
|
467
|
|
|
2.5300
|
%
|
|
One-month L
|
|
Mar-31-2022
|
The Toronto-Dominion Bank
|
|
Jul-20-2017
|
|
Oct-30-2017
|
|
$
|
25,000
|
|
|
$
|
1,054
|
|
|
1.8485
|
%
|
|
One-month L
|
|
Jan-04-2023
|
Royal Bank of Canada
|
|
Jul-20-2017
|
|
Oct-30-2017
|
|
$
|
25,000
|
|
|
$
|
1,054
|
|
|
1.8505
|
%
|
|
One-month L
|
|
Jan-04-2023
|
Wells Fargo, N.A.
|
|
Jul-20-2017
|
|
Oct-30-2017
|
|
$
|
25,000
|
|
|
$
|
1,055
|
|
|
1.8505
|
%
|
|
One-month L
|
|
Jan-04-2023
|
PNC Bank, N.A.
|
|
Jul-20-2017
|
|
Oct-30-2017
|
|
$
|
25,000
|
|
|
$
|
1,052
|
|
|
1.8485
|
%
|
|
One-month L
|
|
Jan-04-2023
|
PNC Bank, N.A.
|
|
Jul-20-2017
|
|
Oct-30-2017
|
|
$
|
50,000
|
|
|
$
|
2,105
|
|
|
1.8475
|
%
|
|
One-month L
|
|
Jan-04-2023
|
The Toronto-Dominion Bank
|
|
Jul-24-2018
|
|
Jul-26-2019
|
|
$
|
50,000
|
|
|
$
|
111
|
|
|
2.9180
|
%
|
|
One-month L
|
|
Jan-12-2024
|
PNC Bank, N.A.
|
|
Jul-24-2018
|
|
Jul-26-2019
|
|
$
|
50,000
|
|
|
$
|
106
|
|
|
2.9190
|
%
|
|
One-month L
|
|
Jan-12-2024
|
Bank of Montreal
|
|
Jul-24-2018
|
|
Jul-26-2019
|
|
$
|
50,000
|
|
|
$
|
113
|
|
|
2.9190
|
%
|
|
One-month L
|
|
Jan-12-2024
|
U.S. Bank, N.A.
|
|
Jul-24-2018
|
|
Jul-26-2019
|
|
$
|
25,000
|
|
|
$
|
57
|
|
|
2.9190
|
%
|
|
One-month L
|
|
Jan-12-2024
|
Balance Sheet Line Item (in thousands)
|
|
Notional Amount September 30, 2018
|
|
Fair Value
September 30, 2018 |
|
Notional Amount December 31, 2017
|
|
Fair Value December 31, 2017
|
||||||||
Interest rate swaps-Asset
|
|
$
|
900,000
|
|
|
$
|
17,649
|
|
|
$
|
475,000
|
|
|
$
|
6,079
|
|
Interest rate swaps-Liability
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
250,000
|
|
|
$
|
(1,217
|
)
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
Effect of Cash Flow Hedge Accounting (in thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Income (loss) recognized in accumulated other comprehensive income on interest rate swaps
|
|
$
|
2,572
|
|
|
$
|
316
|
|
|
$
|
13,349
|
|
|
$
|
(1,126
|
)
|
Income (loss) reclassified from accumulated other comprehensive income into income (loss) as interest expense
|
|
$
|
512
|
|
|
$
|
(282
|
)
|
|
$
|
538
|
|
|
$
|
(1,426
|
)
|
Total interest expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded
|
|
$
|
12,698
|
|
|
$
|
10,446
|
|
|
$
|
35,602
|
|
|
$
|
31,557
|
|
|
|
|
|
Fair Value Measurements as of
September 30, 2018 Using |
||||||||||||
Balance Sheet Line Item (in thousands)
|
|
Fair Value
September 30, 2018 |
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Interest rate swaps-Asset
|
|
$
|
17,649
|
|
|
$
|
—
|
|
|
$
|
17,649
|
|
|
$
|
—
|
|
Interest rate swaps-Liability
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
Fair Value Measurements as of
December 31, 2017 Using |
||||||||||||
Balance Sheet Line Item (in thousands)
|
|
Fair Value December 31, 2017
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Interest rate swaps-Asset
|
|
$
|
6,079
|
|
|
$
|
—
|
|
|
$
|
6,079
|
|
|
$
|
—
|
|
Interest rate swaps-Liability
|
|
$
|
(1,217
|
)
|
|
$
|
—
|
|
|
$
|
(1,217
|
)
|
|
$
|
—
|
|
Preferred Stock Issuances
|
|
Issuance Date
|
|
Number of Shares
|
|
Liquidation Value Per Share
|
|
Interest Rate
|
||||
6.875% Series C Cumulative Redeemable Preferred Stock (
“
Series C Preferred Stock
”
)
|
|
March 17, 2016
|
|
3,000,000
|
|
|
$
|
25.00
|
|
|
6.875
|
%
|
Quarter Ended 2018
|
|
Declaration Date
|
|
Series B
Preferred Stock Per Share |
|
Series C
Preferred Stock Per Share |
|
Payment Date
|
||||
September 30
|
|
July 11, 2018
|
|
$
|
0.0460069
|
|
(1)
|
$
|
0.4296875
|
|
|
October 1, 2018
|
June 30
|
|
April 10, 2018
|
|
0.4140625
|
|
|
0.4296875
|
|
|
July 2, 2018
|
||
March 31
|
|
February 14, 2018
|
|
0.4140625
|
|
|
0.4296875
|
|
|
April 2, 2018
|
||
Total
|
|
|
|
$
|
0.8741319
|
|
|
$
|
1.2890625
|
|
|
|
(1)
|
On June 11, 2018, the Company gave notice to redeem all
2,800,000
issued and outstanding shares of the Series B Preferred Stock. On July 11, 2018, the Company redeemed all of the Series B Preferred Stock at a cash redemption price of
$25.00
per share, plus accrued and unpaid dividends to but excluding the redemption date, without interest.
|
Quarter Ended 2017
|
|
Declaration Date
|
|
Series B Preferred Stock Per Share
|
|
Series C Preferred Stock Per Share
|
|
Payment Date
|
||||
December 31
|
|
November 2, 2017
|
|
$
|
0.4140625
|
|
|
$
|
0.4296875
|
|
|
December 29, 2017
|
September 30
|
|
July 31, 2017
|
|
0.4140625
|
|
|
0.4296875
|
|
|
September 29, 2017
|
||
June 30
|
|
May 1, 2017
|
|
0.4140625
|
|
|
0.4296875
|
|
|
June 30, 2017
|
||
March 31
|
|
February 15, 2017
|
|
0.4140625
|
|
|
0.4296875
|
|
|
March 31, 2017
|
||
Total
|
|
|
|
$
|
1.6562500
|
|
|
$
|
1.7187500
|
|
|
|
ATM Common Stock Offering Program
|
|
Date
|
|
Maximum Aggregate Offering Price (in thousands)
|
|
Aggregate Common Stock Available as of
September 30, 2018 (in thousands) |
||||
2017 $500 million ATM
|
|
November 13, 2017
|
|
$
|
500,000
|
|
|
$
|
213,217
|
|
|
|
Nine months ended September 30, 2018
|
|||||||||||||||||
ATM Common Stock Offering Program
|
|
Shares
Sold |
|
Weighted Average Price Per Share
|
|
Gross
Proceeds |
|
Sales
Agents’ Fee |
|
Net
Proceeds |
|||||||||
2017 $500 million ATM
|
|
10,387,962
|
|
|
$
|
26.61
|
|
|
$
|
276,457
|
|
|
$
|
2,888
|
|
|
$
|
273,569
|
|
Total/weighted average
|
|
10,387,962
|
|
|
$
|
26.61
|
|
|
$
|
276,457
|
|
|
$
|
2,888
|
|
|
$
|
273,569
|
|
|
|
Year ended December 31, 2017
|
|||||||||||||||||
ATM Common Stock Offering Program
|
|
Shares
Sold |
|
Weighted Average Price Per Share
|
|
Gross
Proceeds |
|
Sales
Agents’ Fee |
|
Net
Proceeds |
|||||||||
2017 $500 million ATM
|
|
363,843
|
|
|
$
|
28.38
|
|
|
$
|
10,326
|
|
|
$
|
129
|
|
|
$
|
10,197
|
|
2017 $300 million ATM
(1)
|
|
11,098,748
|
|
|
$
|
27.03
|
|
|
300,000
|
|
|
3,637
|
|
|
296,363
|
|
|||
2016 $228 million ATM
(1)
|
|
4,799,784
|
|
|
$
|
24.42
|
|
|
117,216
|
|
|
1,604
|
|
|
115,612
|
|
|||
Total/weighted average
|
|
16,262,375
|
|
|
$
|
26.29
|
|
|
$
|
427,542
|
|
|
$
|
5,370
|
|
|
$
|
422,172
|
|
(1)
|
These programs ended before
December 31, 2017
.
|
Month Ended 2018
|
|
Declaration Date
|
|
Record Date
|
|
Per Share
|
|
Payment Date
|
||
September 30
|
|
July 11, 2018
|
|
September 28, 2018
|
|
$
|
0.118333
|
|
|
October 15, 2018
|
August 31
|
|
July 11, 2018
|
|
August 31, 2018
|
|
0.118333
|
|
|
September 17, 2018
|
|
July 31
|
|
July 11, 2018
|
|
July 31, 2018
|
|
0.118333
|
|
|
August 15, 2018
|
|
June 30
|
|
April 10, 2018
|
|
June 29, 2018
|
|
0.118333
|
|
|
July 16, 2018
|
|
May 31
|
|
April 10, 2018
|
|
May 31, 2018
|
|
0.118333
|
|
|
June 15, 2018
|
|
April 30
|
|
April 10, 2018
|
|
April 30, 2018
|
|
0.118333
|
|
|
May 15, 2018
|
|
March 31
|
|
November 2, 2017
|
|
March 29, 2018
|
|
0.118333
|
|
|
April 16, 2018
|
|
February 28
|
|
November 2, 2017
|
|
February 28, 2018
|
|
0.118333
|
|
|
March 15, 2018
|
|
January 31
|
|
November 2, 2017
|
|
January 31, 2018
|
|
0.118333
|
|
|
February 15, 2018
|
|
Total
|
|
|
|
|
|
$
|
1.064997
|
|
|
|
Month Ended 2017
|
|
Declaration Date
|
|
Record Date
|
|
Per Share
|
|
Payment Date
|
||
December 31
|
|
July 31, 2017
|
|
December 29, 2017
|
|
$
|
0.117500
|
|
|
January 16, 2018
|
November 30
|
|
July 31, 2017
|
|
November 30, 2017
|
|
0.117500
|
|
|
December 15, 2017
|
|
October 31
|
|
July 31, 2017
|
|
October 31, 2017
|
|
0.117500
|
|
|
November 15, 2017
|
|
September 30
|
|
May 1, 2017
|
|
September 29, 2017
|
|
0.117500
|
|
|
October 16, 2017
|
|
August 31
|
|
May 1, 2017
|
|
August 31, 2017
|
|
0.117500
|
|
|
September 15, 2017
|
|
July 31
|
|
May 1, 2017
|
|
July 31, 2017
|
|
0.117500
|
|
|
August 15, 2017
|
|
June 30
|
|
February 15, 2017
|
|
June 30, 2017
|
|
0.116667
|
|
|
July 17, 2017
|
|
May 31
|
|
February 15, 2017
|
|
May 31, 2017
|
|
0.116667
|
|
|
June 15, 2017
|
|
April 30
|
|
February 15, 2017
|
|
April 28, 2017
|
|
0.116667
|
|
|
May 15, 2017
|
|
March 31
|
|
November 2, 2016
|
|
March 31, 2017
|
|
0.116667
|
|
|
April 17, 2017
|
|
February 28
|
|
November 2, 2016
|
|
February 28, 2017
|
|
0.116667
|
|
|
March 15, 2017
|
|
January 31
|
|
November 2, 2016
|
|
January 31, 2017
|
|
0.116667
|
|
|
February 15, 2017
|
|
Total
|
|
|
|
|
|
$
|
1.405002
|
|
|
|
Unvested Restricted Shares of Common Stock
|
|
Shares
|
|
|
Balance at December 31, 2016
|
|
272,337
|
|
|
Granted
|
|
75,001
|
|
(1)
|
Vested
|
|
(109,209
|
)
|
(2)
|
Forfeited
|
|
(922
|
)
|
|
Balance at December 31, 2017
|
|
237,207
|
|
|
Granted
|
|
76,659
|
|
(1)
|
Vested
|
|
(112,405
|
)
|
(2)
|
Forfeited
|
|
(10,630
|
)
|
|
Balance at September 30, 2018
|
|
190,831
|
|
|
(1)
|
The fair value per share on the grant date of January 5, 2018 and January 6, 2017 was
$26.40
and
$24.41
, respectively.
|
(2)
|
The Company repurchased and retired
41,975
and
40,836
restricted shares of common stock that vested during the
nine
months ended
September 30, 2018
and the year ended
December 31, 2017
, respectively.
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Vested restricted shares of common stock
|
|
—
|
|
|
—
|
|
|
112,405
|
|
|
109,209
|
|
||||
Fair value of vested restricted shares of common stock (in thousands)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,002
|
|
|
$
|
2,591
|
|
|
LTIP Units
|
|
Other
Common Units
|
|
Total
Noncontrolling Common Units
|
|
Noncontrolling Interest
|
||||
Balance at December 31, 2016
|
1,576,516
|
|
|
2,057,365
|
|
|
3,633,881
|
|
|
4.3
|
%
|
Granted/Issued
|
126,239
|
|
|
687,827
|
|
|
814,066
|
|
|
N/A
|
|
Forfeited
|
—
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|
Conversions from LTIP units to Other Common Units
|
(245,685
|
)
|
|
245,685
|
|
|
—
|
|
|
N/A
|
|
Redemptions from Other Common Units to common stock
|
—
|
|
|
(351,260
|
)
|
|
(351,260
|
)
|
|
N/A
|
|
Balance at December 31, 2017
|
1,457,070
|
|
|
2,639,617
|
|
|
4,096,687
|
|
|
4.1
|
%
|
Granted/Issued
|
324,802
|
|
|
—
|
|
|
324,802
|
|
|
N/A
|
|
Forfeited
|
—
|
|
|
—
|
|
|
—
|
|
|
N/A
|
|
Conversions from LTIP units to Other Common Units
|
(165,672
|
)
|
|
165,672
|
|
|
—
|
|
|
N/A
|
|
Redemptions from Other Common Units to common stock
|
—
|
|
|
(352,055
|
)
|
|
(352,055
|
)
|
|
N/A
|
|
Balance at September 30, 2018
|
1,616,200
|
|
|
2,453,234
|
|
|
4,069,434
|
|
|
3.6
|
%
|
LTIP Units
|
|
Assumptions
|
||||||
Grant date
|
|
March 12, 2018
|
|
|
January 5, 2018
|
|
||
Expected term (years)
|
|
10
|
|
|
10
|
|
||
Expected volatility
|
|
22.0
|
%
|
|
22.0
|
%
|
||
Expected dividend yield
|
|
6.0
|
%
|
|
6.0
|
%
|
||
Risk-free interest rate
|
|
2.46
|
%
|
|
2.09
|
%
|
||
Fair value of LTIP units at issuance (in thousands)
|
|
$
|
90
|
|
|
$
|
3,447
|
|
LTIP units at issuance
|
|
3,930
|
|
|
137,616
|
|
||
Fair value unit price per LTIP unit at issuance
|
|
$
|
22.90
|
|
|
$
|
25.05
|
|
Unvested LTIP Units
|
|
LTIP Units
|
|
Balance at December 31, 2016
|
|
403,423
|
|
Granted
|
|
126,239
|
|
Vested
|
|
(229,355
|
)
|
Forfeited
|
|
—
|
|
Balance at December 31, 2017
|
|
300,307
|
|
Granted
|
|
324,802
|
|
Vested
|
|
(342,940
|
)
|
Forfeited
|
|
—
|
|
Balance at September 30, 2018
|
|
282,169
|
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Vested LTIP units
|
|
30,949
|
|
|
44,942
|
|
|
342,940
|
|
|
157,816
|
|
||||
Fair value of vested LTIP units (in thousands)
|
|
$
|
851
|
|
|
$
|
1,235
|
|
|
$
|
9,002
|
|
|
$
|
4,146
|
|
Performance Units
|
|
Assumptions
|
||
Grant date
|
|
January 5, 2018
|
|
|
Expected volatility
|
|
22.0
|
%
|
|
Expected dividend yield
|
|
6.0
|
%
|
|
Risk-free interest rate
|
|
2.09
|
%
|
|
Fair value of performance units grant (in thousands)
|
|
$
|
5,456
|
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
Non-Cash Compensation Expense (in thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Restricted shares of common stock
|
|
$
|
406
|
|
|
$
|
594
|
|
|
$
|
1,269
|
|
|
$
|
1,776
|
|
LTIP units
|
|
893
|
|
|
1,167
|
|
|
2,654
|
|
|
3,508
|
|
||||
Performance-based Compensation Plans
|
|
838
|
|
|
536
|
|
|
2,463
|
|
|
1,610
|
|
||||
Director compensation
(1)
|
|
99
|
|
|
87
|
|
|
285
|
|
|
265
|
|
||||
Total non-cash compensation expense
|
|
$
|
2,236
|
|
|
$
|
2,384
|
|
|
$
|
6,671
|
|
|
$
|
7,159
|
|
(1)
|
All of the Company’s independent directors elected to receive shares of common stock in lieu of cash for their service during the
three and nine
months ended
September 30, 2018
and
2017
. The number of shares of common stock granted is calculated based on the trailing
10 days
average common stock price ending on the third business day preceding the grant date.
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
Earnings Per Share (in thousands, except per share data)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Numerator
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
8,876
|
|
|
$
|
21,839
|
|
|
$
|
48,989
|
|
|
$
|
23,276
|
|
Less: preferred stock dividends
|
1,289
|
|
|
2,449
|
|
|
6,315
|
|
|
7,345
|
|
||||
Less: redemption of preferred stock
|
—
|
|
|
—
|
|
|
2,661
|
|
|
—
|
|
||||
Less: amount allocated to participating securities
|
69
|
|
|
84
|
|
|
209
|
|
|
250
|
|
||||
Less: income attributable to noncontrolling interest after preferred stock dividends
|
281
|
|
|
828
|
|
|
1,589
|
|
|
673
|
|
||||
Net income attributable to common stockholders
|
$
|
7,237
|
|
|
$
|
18,478
|
|
|
$
|
38,215
|
|
|
$
|
15,008
|
|
Denominator
|
|
|
|
|
|
|
|
|
|||||||
Weighted average common shares outstanding — basic
|
105,783
|
|
|
92,787
|
|
|
101,095
|
|
|
87,632
|
|
||||
Effect of dilutive securities
(1)
|
|
|
|
|
|
|
|
||||||||
Share-based compensation
|
550
|
|
|
648
|
|
|
400
|
|
|
606
|
|
||||
Weighted average common shares outstanding — diluted
|
106,333
|
|
|
93,435
|
|
|
101,495
|
|
|
88,238
|
|
||||
Net income per share — basic and diluted
|
|
|
|
|
|
|
|
||||||||
Net income per share attributable to common stockholders — basic
|
$
|
0.07
|
|
|
$
|
0.20
|
|
|
$
|
0.38
|
|
|
$
|
0.17
|
|
Net income per share attributable to common stockholders — diluted
|
$
|
0.07
|
|
|
$
|
0.20
|
|
|
$
|
0.38
|
|
|
$
|
0.17
|
|
(1)
|
During the
three and nine
months ended
September 30, 2018
and
2017
, there were approximately
193
,
197
,
237
and
238
, respectively, unvested restricted shares of common stock on a weighted average basis that were not included in the computation of diluted earnings per share because to do so would have been antidilutive for the period.
|
•
|
the factors included in our Annual Report on Form 10-K for the year ended December 31, 2017, as updated elsewhere in this report, including those set forth under the headings “Business,” “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations;”
|
•
|
our ability to raise equity capital on attractive terms;
|
•
|
the competitive environment in which we operate;
|
•
|
real estate risks, including fluctuations in real estate values and the general economic climate in local markets and competition for tenants in such markets;
|
•
|
decreased rental rates or increased vacancy rates;
|
•
|
potential defaults (including bankruptcies or insolvency) on or non-renewal of leases by tenants;
|
•
|
acquisition risks, including our ability to identify and complete accretive acquisitions and/or failure of such acquisitions to perform in accordance with projections;
|
•
|
the timing of acquisitions and dispositions;
|
•
|
potential natural disasters and other potentially catastrophic events such as acts of war and/or terrorism;
|
•
|
international, national, regional and local economic conditions;
|
•
|
the general level of interest rates and currencies;
|
•
|
potential changes in the law or governmental regulations and interpretations of those laws and regulations, including changes in real estate and zoning laws or real estate investment trust (“REIT”) or corporate income tax laws, and potential increases in real property tax rates;
|
•
|
financing risks, including the risks that our cash flows from operations may be insufficient to meet required payments of principal and interest and we may be unable to refinance our existing debt upon maturity or obtain new financing on attractive terms or at all;
|
•
|
credit risk in the event of non-performance by the counterparties to the interest rate swaps and revolving and unfunded debt;
|
•
|
lack of or insufficient amounts of insurance;
|
•
|
our ability to maintain our qualification as a REIT;
|
•
|
our ability to retain key personnel;
|
•
|
litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; and
|
•
|
possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by us.
|
•
|
the rise of e-commerce (as compared to the traditional retail store distribution model) and the concomitant demand by e-commerce industry participants for well-located, functional distribution space;
|
•
|
the increasing attractiveness of the U.S. as a manufacturing and distribution location because of the size of the U.S. consumer market, an increase in overseas labor costs and the overall cost of supplying and shipping goods (i.e. the shortening and fattening of the supply chain); and
|
•
|
the overall quality of the transportation infrastructure in the U.S.
|
Operating Portfolio
|
|
Square Feet
|
|
Cash
Basis Rent Per Square Foot |
|
SL Rent Per
Square Foot |
|
Total Costs Per
Square Foot (1) |
|
Cash
Rent Change (2) |
|
SL Rent Change
(3)
|
|
Weighted Average Lease
Term (4) (years) |
|
Rental Concessions per Square Foot
(5)
|
||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Three months ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
New Leases
(6)
|
|
544,253
|
|
|
$
|
4.26
|
|
|
$
|
4.41
|
|
|
$
|
2.61
|
|
|
(4.1
|
)%
|
|
(0.4
|
)%
|
|
5.6
|
|
|
$
|
0.54
|
|
Renewal Leases
(7)
|
|
523,306
|
|
|
4.37
|
|
|
4.52
|
|
|
0.56
|
|
|
13.9
|
%
|
|
19.5
|
%
|
|
3.6
|
|
|
—
|
|
||||
Total/weighted average
|
|
1,067,559
|
|
|
$
|
4.31
|
|
|
$
|
4.46
|
|
|
$
|
1.60
|
|
|
5.9
|
%
|
|
10.6
|
%
|
|
4.6
|
|
|
$
|
0.27
|
|
Nine months ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
New Leases
(6)
|
|
1,756,935
|
|
|
$
|
3.73
|
|
|
$
|
3.87
|
|
|
$
|
2.33
|
|
|
9.9
|
%
|
|
17.7
|
%
|
|
6.8
|
|
|
$
|
0.75
|
|
Renewal Leases
(7)
|
|
5,254,633
|
|
|
3.98
|
|
|
4.11
|
|
|
0.62
|
|
|
7.4
|
%
|
|
14.1
|
%
|
|
4.6
|
|
|
0.07
|
|
||||
Total/weighted average
|
|
7,011,568
|
|
|
$
|
3.91
|
|
|
$
|
4.05
|
|
|
$
|
1.05
|
|
|
7.9
|
%
|
|
14.7
|
%
|
|
5.1
|
|
|
$
|
0.24
|
|
(1)
|
We define Total Costs as the costs for improvements of vacant and renewal spaces, as well as the legal fees and commissions for leasing transactions. Total Costs per square foot represent the total costs expected to be incurred on the leases signed during the period and do not reflect actual expenditures for the period.
|
(2)
|
We
define Cash Rent Change as the percentage change in the base rent of the lease executed during the period compared to the base rent of the Comparable Lease for assets included in the Operating Portfolio. The calculation compares the first base rent payment due after the lease commencement date compared to the base rent of the last monthly payment due prior to the termination of the lease, excluding holdover rent. Rent under gross or similar type leases are converted to a net rent based on an estimate of the applicable recoverable expenses.
We define a Comparable Lease as a lease in the same space with a similar lease structure as compared to the previous in-place lease, excluding new leases for space that was not occupied under our ownership. This resulted in 192,707 and 1,532,343 square feet to be deemed non-comparable for three and nine months ended September 30, 2018, respectively.
|
(3)
|
We define SL Rent Change as the percentage change in the average monthly base rent over the term of the lease, calculated on a straight-line basis, of the lease executed during the period compared to the Comparable Lease for assets included in the Operating Portfolio. Rent under gross or similar type leases are converted to a net rent based on an estimate of the applicable recoverable expenses, and this calculation excludes the impact of any holdover rent.
|
(4)
|
We define Weighted Average Lease Term as the contractual lease term in years as of the lease start date weighted by square footage.
|
(5)
|
Represents the total rental concessions for the entire lease term.
|
(6)
|
We define a New Lease as any lease that is signed for an initial term equal to or greater than twelve months for any vacant space; this includes a new tenant or an existing tenant that is expanding into new (additional) space.
|
(7)
|
We define a Renewal Lease as a lease signed by an existing tenant to extend the term for twelve months or more, including (i) a renewal of the same space as the current lease at lease expiration, (ii) a renewal of only a portion of the current space at lease expiration and (iii) an early renewal or workout, which ultimately does extend the original term for twelve months or more.
|
Lease Expiration Year
|
|
Number
of
Leases
Expiring
|
|
Total Rentable
Square Feet
|
|
% of
Total
Occupied
Square Feet
|
|
Total Annualized
Base Rental
Revenue
(in thousands)
|
|
% of Total
Annualized
Base Rental Revenue
|
|||||
Available
|
|
—
|
|
3,466,010
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Month-to-month leases
|
|
5
|
|
205,043
|
|
|
0.3
|
%
|
|
$
|
828
|
|
|
0.3
|
%
|
Remainder of 2018
|
|
4
|
|
798,875
|
|
|
1.1
|
%
|
|
3,489
|
|
|
1.2
|
%
|
|
2019
|
|
53
|
|
8,413,096
|
|
|
11.7
|
%
|
|
35,622
|
|
|
11.8
|
%
|
|
2020
|
|
50
|
|
9,814,812
|
|
|
13.6
|
%
|
|
42,116
|
|
|
14.0
|
%
|
|
2021
|
|
69
|
|
10,940,764
|
|
|
15.2
|
%
|
|
47,063
|
|
|
15.6
|
%
|
|
2022
|
|
51
|
|
6,532,253
|
|
|
9.1
|
%
|
|
28,129
|
|
|
9.3
|
%
|
|
2023
|
|
46
|
|
8,755,494
|
|
|
12.2
|
%
|
|
32,648
|
|
|
10.9
|
%
|
|
2024
|
|
28
|
|
5,320,625
|
|
|
7.4
|
%
|
|
21,716
|
|
|
7.2
|
%
|
|
2025
|
|
23
|
|
3,991,385
|
|
|
5.5
|
%
|
|
17,349
|
|
|
5.8
|
%
|
|
2026
|
|
23
|
|
5,069,584
|
|
|
7.0
|
%
|
|
19,818
|
|
|
6.6
|
%
|
|
2027
|
|
12
|
|
1,916,418
|
|
|
2.7
|
%
|
|
9,059
|
|
|
3.0
|
%
|
|
Thereafter
|
|
45
|
|
10,161,454
|
|
|
14.2
|
%
|
|
43,022
|
|
|
14.3
|
%
|
|
Total
|
|
409
|
|
75,385,813
|
|
|
100.0
|
%
|
|
$
|
300,859
|
|
|
100.0
|
%
|
|
|
|
|
Square Footage
|
|
|
|
Annualized Base Rental Revenue
|
|||||||||||
Building Type
|
|
Number of Buildings
|
|
Amount
|
|
%
|
|
Occupancy Rate
(1)
|
|
Amount
(in thousands)
|
|
%
|
|||||||
Warehouse/Distribution
|
|
309
|
|
|
67,433,301
|
|
|
89.5
|
%
|
|
95.7
|
%
|
|
$
|
264,832
|
|
|
88.1
|
%
|
Light Manufacturing
|
|
59
|
|
|
6,614,487
|
|
|
8.8
|
%
|
|
100.0
|
%
|
|
29,615
|
|
|
9.8
|
%
|
|
Total Operating Portfolio/weighted average
|
|
368
|
|
|
74,047,788
|
|
|
98.3
|
%
|
|
96.0
|
%
|
|
$
|
294,447
|
|
|
97.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Value Add
|
|
4
|
|
|
773,345
|
|
|
1.0
|
%
|
|
53.7
|
%
|
|
1,792
|
|
|
0.6
|
%
|
|
Flex/Office
|
|
9
|
|
|
564,680
|
|
|
0.7
|
%
|
|
67.9
|
%
|
|
4,620
|
|
|
1.5
|
%
|
|
Total portfolio/weighted average
|
|
381
|
|
|
75,385,813
|
|
|
100.0
|
%
|
|
95.4
|
%
|
|
$
|
300,859
|
|
|
100.0
|
%
|
(1)
|
We define Occupancy Rate as the percentage of total leasable square footage for which either revenue recognition has commenced in accordance with GAAP or the lease term has commenced as of the close of the reporting period, whichever occurs earlier.
|
Market
(1)
|
|
Date Acquired
|
|
Square Feet
|
|
Buildings
|
|
Purchase Price
(in thousands) |
||||
Greenville/Spartanburg, SC
|
|
January 11, 2018
|
|
203,000
|
|
|
1
|
|
|
$
|
10,755
|
|
Minneapolis/St Paul, MN
|
|
January 26, 2018
|
|
145,351
|
|
|
1
|
|
|
13,538
|
|
|
Philadelphia, PA
|
|
February 1, 2018
|
|
278,582
|
|
|
1
|
|
|
18,277
|
|
|
Houston, TX
|
|
February 22, 2018
|
|
242,225
|
|
|
2
|
|
|
22,478
|
|
|
Greenville/Spartanburg, SC
|
|
March 30, 2018
|
|
222,710
|
|
|
1
|
|
|
13,773
|
|
|
Three months ended March 31, 2018
|
|
|
|
1,091,868
|
|
|
6
|
|
|
78,821
|
|
|
Chicago, IL
|
|
April 23, 2018
|
|
169,311
|
|
|
2
|
|
|
10,975
|
|
|
Milwaukee/Madison, WI
|
|
April 26, 2018
|
|
53,680
|
|
|
1
|
|
|
4,316
|
|
|
Pittsburgh, PA
|
|
April 30, 2018
|
|
175,000
|
|
|
1
|
|
|
15,380
|
|
|
Detroit, MI
|
|
May 9, 2018
|
|
274,500
|
|
|
1
|
|
|
19,328
|
|
|
Minneapolis/St Paul, MN
|
|
May 15, 2018
|
|
509,910
|
|
|
2
|
|
|
26,983
|
|
|
Cincinnati/Dayton, OH
|
|
May 23, 2018
|
|
158,500
|
|
|
1
|
|
|
7,317
|
|
|
Baton Rouge, LA
|
|
May 31, 2018
|
|
279,236
|
|
|
1
|
|
|
21,379
|
|
|
Las Vegas, NV
|
|
June 12, 2018
|
|
122,472
|
|
|
1
|
|
|
17,920
|
|
|
Greenville/Spartanburg, SC
|
|
June 15, 2018
|
|
131,805
|
|
|
1
|
|
|
5,621
|
|
|
Denver, CO
|
|
June 18, 2018
|
|
64,750
|
|
|
1
|
|
|
7,044
|
|
|
Cincinnati/Dayton, OH
|
|
June 25, 2018
|
|
465,136
|
|
|
1
|
|
|
16,421
|
|
|
Charlotte, NC
|
|
June 29, 2018
|
|
69,200
|
|
|
1
|
|
|
5,446
|
|
|
Houston, TX
|
|
June 29, 2018
|
|
252,662
|
|
|
1
|
|
|
27,170
|
|
|
Three months ended June 30, 2018
|
|
|
|
2,726,162
|
|
|
15
|
|
|
185,300
|
|
|
Knoxville, TN
|
|
July 10, 2018
|
|
106,000
|
|
|
1
|
|
|
6,477
|
|
|
Pittsburgh, PA
|
|
August 2, 2018
|
|
265,568
|
|
|
1
|
|
|
19,186
|
|
|
Raleigh/Durham, NC
|
|
August 2, 2018
|
|
365,000
|
|
|
1
|
|
|
21,067
|
|
|
Detroit, MI
|
|
August 6, 2018
|
|
439,150
|
|
|
1
|
|
|
21,077
|
|
|
Des Moines, IA
|
|
August 8, 2018
|
|
121,922
|
|
|
1
|
|
|
6,053
|
|
|
McAllen/Edinburg/Pharr, TX
|
|
August 9, 2018
|
|
270,084
|
|
|
1
|
|
|
18,523
|
|
|
Pittsburgh, PA
|
|
August 15, 2018
|
|
200,500
|
|
|
1
|
|
|
11,327
|
|
|
Minneapolis/St Paul, MN
|
|
August 24, 2018
|
|
120,606
|
|
|
1
|
|
|
8,422
|
|
|
Milwaukee/Madison, WI
|
|
September 28, 2018
|
|
100,800
|
|
|
1
|
|
|
7,484
|
|
|
Milwaukee/Madison, WI
|
|
September 28, 2018
|
|
174,633
|
|
|
2
|
|
|
13,288
|
|
|
Chicago, IL
|
|
September 28, 2018
|
|
105,637
|
|
|
1
|
|
|
6,368
|
|
|
Indianapolis, IN
|
|
September 28, 2018
|
|
478,721
|
|
|
1
|
|
|
29,085
|
|
|
Augusta/Richmond County, GA
|
|
September 28, 2018
|
|
203,726
|
|
|
1
|
|
|
9,379
|
|
|
Charlotte, NC
|
|
September 28, 2018
|
|
301,000
|
|
|
1
|
|
|
16,807
|
|
|
Three months ended September 30, 2018
|
|
|
|
3,253,347
|
|
|
15
|
|
|
194,543
|
|
|
Nine months ended September 30, 2018
|
|
|
|
7,071,377
|
|
|
36
|
|
|
$
|
458,664
|
|
Top Ten Markets
(1)
|
|
% of Total Annualized Base Rental Revenue
|
|
Philadelphia, PA
|
|
9.5
|
%
|
Chicago, IL
|
|
8.6
|
%
|
Greenville/Spartanburg, SC
|
|
4.8
|
%
|
Milwaukee/Madison, WI
|
|
4.1
|
%
|
Detroit, MI
|
|
3.9
|
%
|
Cincinnati/
Dayton, OH
|
|
3.3
|
%
|
Charlotte,
NC
|
|
3.2
|
%
|
Houston, TX
|
|
3.2
|
%
|
Minneapolis/St Paul, MN
|
|
3.0
|
%
|
Pittsburgh, PA
|
|
2.8
|
%
|
Total
|
|
46.4
|
%
|
Top Ten Tenant Industries
(1)
|
|
% of Total Annualized Base Rental Revenue
|
|
Capital Goods
|
|
14.8
|
%
|
Automobiles &
Components
|
|
12.8
|
%
|
Materials
|
|
11.7
|
%
|
Transportation
|
|
8.9
|
%
|
Consumer Durables & Apparel
|
|
8.9
|
%
|
Food, Beverage & Tobacco
|
|
7.9
|
%
|
Commercial & Prof Services
|
|
7.6
|
%
|
Retailing
|
|
5.0
|
%
|
Household & Personal Products
|
|
4.7
|
%
|
Food & Staples Retailing
|
|
4.3
|
%
|
Total
|
|
86.6
|
%
|
Top Ten Tenants
(1)
|
|
Number of Leases
|
|
% of Total Annualized Base Rental Revenue
|
||
General Service Administration
|
|
1
|
|
|
2.3
|
%
|
XPO Logistics
|
|
4
|
|
|
1.9
|
%
|
Deckers Outdoor
|
|
2
|
|
|
1.4
|
%
|
Yanfeng US Automotive Interior
|
|
3
|
|
|
1.3
|
%
|
Solo Cup
|
|
1
|
|
|
1.3
|
%
|
TriMas Corporation
|
|
4
|
|
|
1.2
|
%
|
DHL
|
|
4
|
|
|
1.0
|
%
|
Generation Brands
|
|
1
|
|
|
0.9
|
%
|
Schneider Electric USA, Inc.
|
|
4
|
|
|
0.9
|
%
|
Carolina Beverage Group
|
|
2
|
|
|
0.9
|
%
|
Total
|
|
26
|
|
|
13.1
|
%
|
|
Same Store Portfolio
|
|
Acquisitions/Dispositions
|
|
Other
|
|
Total Portfolio
|
||||||||||||||||||||||||||||||||||||||
|
Three months ended September 30,
|
|
Change
|
|
Three months ended September 30,
|
|
Three months ended September 30,
|
|
Three months ended September 30,
|
|
Change
|
||||||||||||||||||||||||||||||||||
|
2018
|
|
2017
|
|
$
|
|
%
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
$
|
|
%
|
||||||||||||||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Operating revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Rental income
|
$
|
61,926
|
|
|
$
|
60,611
|
|
|
$
|
1,315
|
|
|
2.2
|
%
|
|
$
|
9,977
|
|
|
$
|
3,030
|
|
|
$
|
3,256
|
|
|
$
|
2,032
|
|
|
$
|
75,159
|
|
|
$
|
65,673
|
|
|
$
|
9,486
|
|
|
14.4
|
%
|
Tenant recoveries
|
10,760
|
|
|
11,239
|
|
|
(479
|
)
|
|
(4.3
|
)%
|
|
1,865
|
|
|
620
|
|
|
893
|
|
|
507
|
|
|
13,518
|
|
|
12,366
|
|
|
1,152
|
|
|
9.3
|
%
|
||||||||||
Other income
|
254
|
|
|
44
|
|
|
210
|
|
|
477.3
|
%
|
|
15
|
|
|
50
|
|
|
—
|
|
|
11
|
|
|
269
|
|
|
105
|
|
|
164
|
|
|
156.2
|
%
|
||||||||||
Total operating revenue
|
72,940
|
|
|
71,894
|
|
|
1,046
|
|
|
1.5
|
%
|
|
11,857
|
|
|
3,700
|
|
|
4,149
|
|
|
2,550
|
|
|
88,946
|
|
|
78,144
|
|
|
10,802
|
|
|
13.8
|
%
|
||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Property
|
13,572
|
|
|
13,388
|
|
|
184
|
|
|
1.4
|
%
|
|
2,049
|
|
|
993
|
|
|
1,491
|
|
|
1,020
|
|
|
17,112
|
|
|
15,401
|
|
|
1,711
|
|
|
11.1
|
%
|
||||||||||
Net operating income
(1)
|
$
|
59,368
|
|
|
$
|
58,506
|
|
|
$
|
862
|
|
|
1.5
|
%
|
|
$
|
9,808
|
|
|
$
|
2,707
|
|
|
$
|
2,658
|
|
|
$
|
1,530
|
|
|
71,834
|
|
|
62,743
|
|
|
9,091
|
|
|
14.5
|
%
|
|||
Other expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,911
|
|
|
8,380
|
|
|
531
|
|
|
6.3
|
%
|
|||||||||||||||||||
Property acquisition costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
1,386
|
|
|
(1,386
|
)
|
|
(100.0
|
)%
|
|||||||||||||||||||
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
44,355
|
|
|
38,186
|
|
|
6,169
|
|
|
16.2
|
%
|
|||||||||||||||||||
Other expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
223
|
|
|
58
|
|
|
165
|
|
|
284.5
|
%
|
|||||||||||||||||||
Total other expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53,489
|
|
|
48,010
|
|
|
5,479
|
|
|
11.4
|
%
|
|||||||||||||||||||
Total expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
70,601
|
|
|
63,411
|
|
|
7,190
|
|
|
11.3
|
%
|
|||||||||||||||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Interest and other income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3
|
|
|
2
|
|
|
1
|
|
|
50.0
|
%
|
|||||||||||||||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(12,698
|
)
|
|
(10,446
|
)
|
|
(2,252
|
)
|
|
21.6
|
%
|
|||||||||||||||||||
Loss on extinguishment of debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(13
|
)
|
|
(13
|
)
|
|
—
|
|
|
—
|
%
|
|||||||||||||||||||
Gain on the sales of rental property, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,239
|
|
|
17,563
|
|
|
(14,324
|
)
|
|
(81.6
|
)%
|
|||||||||||||||||||
Total other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(9,469
|
)
|
|
7,106
|
|
|
(16,575
|
)
|
|
(233.3
|
)%
|
|||||||||||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8,876
|
|
|
$
|
21,839
|
|
|
$
|
(12,963
|
)
|
|
(59.4
|
)%
|
(1)
|
For a detailed discussion of NOI, including the reasons management believes NOI is useful to investors, see “Non-GAAP Financial Measures” below.
|
|
Same Store Portfolio
|
|
Acquisitions/Dispositions
|
|
Other
|
|
Total Portfolio
|
||||||||||||||||||||||||||||||||||||||
|
Nine months ended September 30,
|
|
Change
|
|
Nine months ended September 30,
|
|
Nine months ended September 30,
|
|
Nine months ended September 30,
|
|
Change
|
||||||||||||||||||||||||||||||||||
|
2018
|
|
2017
|
|
$
|
|
%
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
$
|
|
%
|
||||||||||||||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Operating revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Rental income
|
$
|
162,063
|
|
|
$
|
158,798
|
|
|
$
|
3,265
|
|
|
2.1
|
%
|
|
$
|
44,984
|
|
|
$
|
21,629
|
|
|
$
|
10,180
|
|
|
$
|
6,194
|
|
|
$
|
217,227
|
|
|
$
|
186,621
|
|
|
$
|
30,606
|
|
|
16.4
|
%
|
Tenant recoveries
|
28,341
|
|
|
27,519
|
|
|
822
|
|
|
3.0
|
%
|
|
8,693
|
|
|
4,004
|
|
|
2,409
|
|
|
1,429
|
|
|
39,443
|
|
|
32,952
|
|
|
6,491
|
|
|
19.7
|
%
|
||||||||||
Other income
|
725
|
|
|
118
|
|
|
607
|
|
|
514.4
|
%
|
|
216
|
|
|
70
|
|
|
92
|
|
|
56
|
|
|
1,033
|
|
|
244
|
|
|
789
|
|
|
323.4
|
%
|
||||||||||
Total operating revenue
|
191,129
|
|
|
186,435
|
|
|
4,694
|
|
|
2.5
|
%
|
|
53,893
|
|
|
25,703
|
|
|
12,681
|
|
|
7,679
|
|
|
257,703
|
|
|
219,817
|
|
|
37,886
|
|
|
17.2
|
%
|
||||||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Property
|
35,947
|
|
|
33,839
|
|
|
2,108
|
|
|
6.2
|
%
|
|
10,337
|
|
|
5,317
|
|
|
4,451
|
|
|
3,156
|
|
|
50,735
|
|
|
42,312
|
|
|
8,423
|
|
|
19.9
|
%
|
||||||||||
Net operating income
(1)
|
$
|
155,182
|
|
|
$
|
152,596
|
|
|
$
|
2,586
|
|
|
1.7
|
%
|
|
$
|
43,556
|
|
|
$
|
20,386
|
|
|
$
|
8,230
|
|
|
$
|
4,523
|
|
|
206,968
|
|
|
177,505
|
|
|
29,463
|
|
|
16.6
|
%
|
|||
Other expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25,637
|
|
|
25,090
|
|
|
547
|
|
|
2.2
|
%
|
||||||||||||||
Property acquisition costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
4,684
|
|
|
(4,684
|
)
|
|
(100.0
|
)%
|
||||||||||||||
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
125,221
|
|
|
110,286
|
|
|
14,935
|
|
|
13.5
|
%
|
||||||||||||||
Loss on impairments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,934
|
|
|
—
|
|
|
2,934
|
|
|
100.0
|
%
|
||||||||||||||
Loss on involuntary conversion
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
330
|
|
|
(330
|
)
|
|
(100.0
|
)%
|
||||||||||||||
Other expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
864
|
|
|
1,502
|
|
|
(638
|
)
|
|
(42.5
|
)%
|
||||||||||||||
Total other expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
154,656
|
|
|
141,892
|
|
|
12,764
|
|
|
9.0
|
%
|
||||||||||||||
Total expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
205,391
|
|
|
184,204
|
|
|
21,187
|
|
|
11.5
|
%
|
||||||||||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Interest and other income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16
|
|
|
10
|
|
|
6
|
|
|
60.0
|
%
|
|||||||||||||||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(35,602
|
)
|
|
(31,557
|
)
|
|
(4,045
|
)
|
|
12.8
|
%
|
||||||||||||||
Loss on extinguishment of debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(13
|
)
|
|
(15
|
)
|
|
2
|
|
|
(13.3
|
)%
|
||||||||||||||
Gain on the sales of rental property, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32,276
|
|
|
19,225
|
|
|
13,051
|
|
|
67.9
|
%
|
||||||||||||||
Total other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,323
|
)
|
|
(12,337
|
)
|
|
9,014
|
|
|
73.1
|
%
|
||||||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
48,989
|
|
|
$
|
23,276
|
|
|
$
|
25,713
|
|
|
110.5
|
%
|
(1)
|
For a detailed discussion of NOI, including the reasons management believes NOI is useful to investors, see “Non-GAAP Financial Measures” below.
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
Reconciliation of Net Income to FFO (in thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income
|
|
$
|
8,876
|
|
|
$
|
21,839
|
|
|
$
|
48,989
|
|
|
$
|
23,276
|
|
Rental property depreciation and amortization
|
|
44,281
|
|
|
38,114
|
|
|
124,999
|
|
|
110,069
|
|
||||
Loss on impairments
|
|
—
|
|
|
—
|
|
|
2,934
|
|
|
—
|
|
||||
Gain on the sales of rental property, net
|
|
(3,239
|
)
|
|
(17,563
|
)
|
|
(32,276
|
)
|
|
(19,225
|
)
|
||||
FFO
|
|
49,918
|
|
|
42,390
|
|
|
144,646
|
|
|
114,120
|
|
||||
Preferred stock dividends
|
|
(1,289
|
)
|
|
(2,449
|
)
|
|
(6,315
|
)
|
|
(7,345
|
)
|
||||
Redemption of preferred stock
|
|
—
|
|
|
—
|
|
|
(2,661
|
)
|
|
—
|
|
||||
FFO attributable to common stockholders and unit holders
|
|
$
|
48,629
|
|
|
$
|
39,941
|
|
|
$
|
135,670
|
|
|
$
|
106,775
|
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
Reconciliation of Net Income to NOI (in thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income
|
|
$
|
8,876
|
|
|
$
|
21,839
|
|
|
$
|
48,989
|
|
|
$
|
23,276
|
|
Asset management fee income
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(52
|
)
|
||||
General and administrative
|
|
8,911
|
|
|
8,380
|
|
|
25,637
|
|
|
25,090
|
|
||||
Property acquisition costs
|
|
94
|
|
|
1,386
|
|
|
170
|
|
|
4,684
|
|
||||
Depreciation and amortization
|
|
44,355
|
|
|
38,186
|
|
|
125,221
|
|
|
110,286
|
|
||||
Interest and other income
|
|
(3
|
)
|
|
(2
|
)
|
|
(16
|
)
|
|
(10
|
)
|
||||
Interest expense
|
|
12,698
|
|
|
10,446
|
|
|
35,602
|
|
|
31,557
|
|
||||
Loss on impairments
|
|
—
|
|
|
—
|
|
|
2,934
|
|
|
—
|
|
||||
Loss on involuntary conversion
|
|
—
|
|
|
—
|
|
|
—
|
|
|
330
|
|
||||
Loss on extinguishment of debt
|
|
13
|
|
|
13
|
|
|
13
|
|
|
15
|
|
||||
Other expenses
|
|
129
|
|
|
260
|
|
|
694
|
|
|
813
|
|
||||
(Gain) loss on incentive fee
|
|
—
|
|
|
(202
|
)
|
|
—
|
|
|
689
|
|
||||
Gain on the sales of rental property, net
|
|
(3,239
|
)
|
|
(17,563
|
)
|
|
(32,276
|
)
|
|
(19,225
|
)
|
||||
Net operating income
|
|
$
|
71,834
|
|
|
$
|
62,734
|
|
|
$
|
206,968
|
|
|
$
|
177,453
|
|
|
|
Nine months ended September 30,
|
|
Change
|
|||||||||||
Cash Flows (dollars in thousands)
|
|
2018
|
|
2017
|
|
$
|
|
%
|
|||||||
Net cash provided by operating activities
|
|
$
|
148,610
|
|
|
$
|
120,034
|
|
|
$
|
28,576
|
|
|
23.8
|
%
|
Net cash used in investing activities
|
|
$
|
393,250
|
|
|
$
|
468,294
|
|
|
$
|
(75,044
|
)
|
|
(16.0
|
)%
|
Net cash provided by financing activities
|
|
$
|
227,766
|
|
|
$
|
341,042
|
|
|
$
|
(113,276
|
)
|
|
(33.2
|
)%
|
Month Ended 2018
|
|
Declaration Date
|
|
Record Date
|
|
Per Share
|
|
Payment Date
|
||
September 30
|
|
July 11, 2018
|
|
September 28, 2018
|
|
$
|
0.118333
|
|
|
October 15, 2018
|
August 31
|
|
July 11, 2018
|
|
August 31, 2018
|
|
0.118333
|
|
|
September 17, 2018
|
|
July 31
|
|
July 11, 2018
|
|
July 31, 2018
|
|
0.118333
|
|
|
August 15, 2018
|
|
June 30
|
|
April 10, 2018
|
|
June 29, 2018
|
|
0.118333
|
|
|
July 16, 2018
|
|
May 31
|
|
April 10, 2018
|
|
May 31, 2018
|
|
0.118333
|
|
|
June 15, 2018
|
|
April 30
|
|
April 10, 2018
|
|
April 30, 2018
|
|
0.118333
|
|
|
May 15, 2018
|
|
March 31
|
|
November 2, 2017
|
|
March 29, 2018
|
|
0.118333
|
|
|
April 16, 2018
|
|
February 28
|
|
November 2, 2017
|
|
February 28, 2018
|
|
0.118333
|
|
|
March 15, 2018
|
|
January 31
|
|
November 2, 2017
|
|
January 31, 2018
|
|
0.118333
|
|
|
February 15, 2018
|
|
Total
|
|
|
|
|
|
$
|
1.064997
|
|
|
|
Quarter Ended 2018
|
|
Declaration Date
|
|
Series B
Preferred Stock Per Share |
|
Series C
Preferred Stock Per Share |
|
Payment Date
|
||||
September 30
|
|
July 11, 2018
|
|
$
|
0.0460069
|
|
(1)
|
$
|
0.4296875
|
|
|
October 1, 2018
|
June 30
|
|
April 10, 2018
|
|
0.4140625
|
|
|
0.4296875
|
|
|
July 2, 2018
|
||
March 31
|
|
February 14, 2018
|
|
0.4140625
|
|
|
0.4296875
|
|
|
April 2, 2018
|
||
Total
|
|
|
|
$
|
0.8741319
|
|
|
$
|
1.2890625
|
|
|
|
(1)
|
On June 11, 2018, we gave notice to redeem all
2,800,000
issued and outstanding shares of the Series B Preferred Stock. On July 11, 2018, we redeemed all of the Series B Preferred Stock at a cash redemption price of
$25.00
per share, plus accrued and unpaid dividends to but excluding the redemption date, without interest.
|
Loan
|
|
Principal Outstanding (in thousands)
|
|
Interest
Rate (1) |
|
Maturity Date
|
|
Prepayment Terms
(2)
|
|||
Unsecured credit facility:
|
|
|
|
|
|
|
|
|
|||
Unsecured Credit Facility
(3)
|
|
$
|
95,000
|
|
|
L + 1.05%
|
|
|
Jan-15-2023
|
|
i
|
Total unsecured credit facility
|
|
95,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Unsecured term loans:
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured Term Loan C
|
|
150,000
|
|
|
L + 1.30%
|
|
|
Sep-29-2020
|
|
i
|
|
Unsecured Term Loan B
|
|
150,000
|
|
|
L + 1.30%
|
|
|
Mar-21-2021
|
|
i
|
|
Unsecured Term Loan A
|
|
150,000
|
|
|
L + 1.30%
|
|
|
Mar-31-2022
|
|
i
|
|
Unsecured Term Loan D
|
|
150,000
|
|
|
L + 1.30%
|
|
|
Jan-04-2023
|
|
i
|
|
Unsecured Term Loan E
(4)
|
|
—
|
|
|
L + 1.20%
|
|
|
Jan-15-2024
|
|
i
|
|
Total unsecured term loans
|
|
600,000
|
|
|
|
|
|
|
|
||
Less: Total unamortized deferred financing fees and debt issuance costs
|
|
(3,915
|
)
|
|
|
|
|
|
|
||
Total carrying value unsecured term loans, net
|
|
596,085
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Unsecured notes:
|
|
|
|
|
|
|
|
|
|
|
|
Series F Unsecured Notes
|
|
100,000
|
|
|
3.98
|
%
|
|
Jan-05-2023
|
|
ii
|
|
Series A Unsecured Notes
|
|
50,000
|
|
|
4.98
|
%
|
|
Oct-1-2024
|
|
ii
|
|
Series D Unsecured Notes
|
|
100,000
|
|
|
4.32
|
%
|
|
Feb-20-2025
|
|
ii
|
|
Series G Unsecured Notes
|
|
75,000
|
|
|
4.10
|
%
|
|
Jun-13-2025
|
|
ii
|
|
Series B Unsecured Notes
|
|
50,000
|
|
|
4.98
|
%
|
|
Jul-1-2026
|
|
ii
|
|
Series C Unsecured Notes
|
|
80,000
|
|
|
4.42
|
%
|
|
Dec-30-2026
|
|
ii
|
|
Series E Unsecured Notes
|
|
20,000
|
|
|
4.42
|
%
|
|
Feb-20-2027
|
|
ii
|
|
Series H Unsecured Notes
|
|
100,000
|
|
|
4.27
|
%
|
|
Jun-13-2028
|
|
ii
|
|
Total unsecured notes
|
|
575,000
|
|
|
|
|
|
|
|
||
Less: Total unamortized deferred financing fees and debt issuance costs
|
|
(2,611
|
)
|
|
|
|
|
|
|
||
Total carrying value unsecured notes, net
|
|
572,389
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Mortgage notes (secured debt):
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo Bank, National Association CMBS Loan
|
|
53,652
|
|
|
4.31
|
%
|
|
Dec-1-2022
|
|
iii
|
|
Thrivent Financial for Lutherans
|
|
3,824
|
|
|
4.78
|
%
|
|
Dec-15-2023
|
|
iv
|
|
Total mortgage notes
|
|
57,476
|
|
|
|
|
|
|
|
|
|
Add: Total unamortized fair market value premiums
|
|
52
|
|
|
|
|
|
|
|
|
|
Less: Total unamortized deferred financing fees and debt issuance costs
|
|
(535
|
)
|
|
|
|
|
|
|
||
Total carrying value mortgage notes, net
|
|
56,993
|
|
|
|
|
|
|
|
|
|
Total / weighted average interest rate
(5)
|
|
$
|
1,320,467
|
|
|
3.69
|
%
|
|
|
|
|
(1)
|
Interest rate as of
September 30, 2018
. At
September 30, 2018
, the one-month LIBOR (“L”) was
2.26056%
. The interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums. The spread over the applicable rate for our unsecured credit facility and unsecured term loans is based on our consolidated leverage ratio, as defined in the respective loan agreements.
|
(2)
|
Prepayment terms consist of (i) pre-payable with no penalty; (ii) pre-payable with penalty; (iii) pre-payable without penalty
three
months prior to the maturity date, however can be defeased beginning January 1, 2016; and (iv) pre-payable without penalty
three
months prior to the maturity date.
|
(3)
|
The capacity of the unsecured credit facility is
$500.0 million
.
|
(4)
|
Capacity of $175.0 million, which we have until July 25, 2019 to draw.
|
(5)
|
The weighted average interest rate was calculated using the fixed interest rate swapped on the notional amount of
$600.0 million
of debt that was in effect as of
September 30, 2018
, and is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums.
|
Debt Capital Structure
|
|
September 30, 2018
|
||
Total principal outstanding (in thousands)
|
|
$
|
1,327,476
|
|
Weighted average duration (years)
|
|
4.9
|
|
|
% Secured debt
|
|
4
|
%
|
|
% Debt maturing next 12 months
|
|
—
|
%
|
|
Net Debt to Real Estate Cost Basis
(1)
|
|
39
|
%
|
(1)
|
We define Net Debt as our amounts outstanding under our unsecured credit facility, unsecured term loans, unsecured notes, and mortgage notes, less cash and cash equivalents.
We define Real Estate Cost Basis as the book value of rental property and deferred leasing intangibles, exclusive of the related accumulated depreciation and amortization.
|
Preferred Stock Issuances
|
|
Issuance Date
|
|
Number of Shares
|
|
Liquidation Value Per Share
|
|
Interest Rate
|
||||
Series C Preferred Stock
|
|
March 17, 2016
|
|
3,000,000
|
|
|
$
|
25.00
|
|
|
6.875
|
%
|
ATM Common Stock Offering Program
|
|
Date
|
|
Maximum Aggregate Offering Price (in thousands)
|
|
Aggregate Common Stock Available as of
September 30, 2018 (in thousands) |
||||
2017 $500 million ATM
|
|
November 13, 2017
|
|
$
|
500,000
|
|
|
$
|
213,217
|
|
|
|
Three months ended September 30, 2018
|
|||||||||||||||||
ATM Common Stock Offering Program
|
|
Shares
Sold |
|
Weighted Average Price Per Share
|
|
Gross
Proceeds |
|
Sales
Agents’ Fee |
|
Net
Proceeds |
|||||||||
2017 $500 million ATM
|
|
3,568,382
|
|
|
$
|
27.94
|
|
|
$
|
99,695
|
|
|
$
|
1,129
|
|
|
$
|
98,566
|
|
Total/weighted average
|
|
3,568,382
|
|
|
$
|
27.94
|
|
|
$
|
99,695
|
|
|
$
|
1,129
|
|
|
$
|
98,566
|
|
|
|
Nine months ended September 30, 2018
|
|||||||||||||||||
ATM Common Stock Offering Program
|
|
Shares
Sold |
|
Weighted Average Price Per Share
|
|
Gross
Proceeds |
|
Sales
Agents’ Fee |
|
Net
Proceeds |
|||||||||
2017 $500 million ATM
|
|
10,387,962
|
|
|
$
|
26.61
|
|
|
$
|
276,457
|
|
|
$
|
2,888
|
|
|
$
|
273,569
|
|
Total/weighted average
|
|
10,387,962
|
|
|
$
|
26.61
|
|
|
$
|
276,457
|
|
|
$
|
2,888
|
|
|
$
|
273,569
|
|
Interest Rate
Derivative Counterparty |
|
Trade Date
|
|
Effective Date
|
|
Notional Amount
(in thousands) |
|
Fair Value
(in thousands) |
|
Pay Fixed Interest Rate
|
|
Receive Variable Interest Rate
|
|
Maturity Date
|
|||||
Regions Bank
|
|
Mar-01-2013
|
|
Mar-01-2013
|
|
$
|
25,000
|
|
|
$
|
471
|
|
|
1.3300
|
%
|
|
One-month L
|
|
Feb-14-2020
|
Capital One, N.A.
|
|
Jun-13-2013
|
|
Jul-01-2013
|
|
$
|
50,000
|
|
|
$
|
703
|
|
|
1.6810
|
%
|
|
One-month L
|
|
Feb-14-2020
|
Capital One, N.A.
|
|
Jun-13-2013
|
|
Aug-01-2013
|
|
$
|
25,000
|
|
|
$
|
344
|
|
|
1.7030
|
%
|
|
One-month L
|
|
Feb-14-2020
|
Regions Bank
|
|
Sep-30-2013
|
|
Feb-03-2014
|
|
$
|
25,000
|
|
|
$
|
245
|
|
|
1.9925
|
%
|
|
One-month L
|
|
Feb-14-2020
|
The Toronto-Dominion Bank
|
|
Oct-14-2015
|
|
Sep-29-2016
|
|
$
|
25,000
|
|
|
$
|
700
|
|
|
1.3830
|
%
|
|
One-month L
|
|
Sep-29-2020
|
PNC Bank, N.A.
|
|
Oct-14-2015
|
|
Sep-29-2016
|
|
$
|
50,000
|
|
|
$
|
1,391
|
|
|
1.3906
|
%
|
|
One-month L
|
|
Sep-29-2020
|
Regions Bank
|
|
Oct-14-2015
|
|
Sep-29-2016
|
|
$
|
35,000
|
|
|
$
|
978
|
|
|
1.3858
|
%
|
|
One-month L
|
|
Sep-29-2020
|
U.S. Bank, N.A.
|
|
Oct-14-2015
|
|
Sep-29-2016
|
|
$
|
25,000
|
|
|
$
|
695
|
|
|
1.3950
|
%
|
|
One-month L
|
|
Sep-29-2020
|
Capital One, N.A.
|
|
Oct-14-2015
|
|
Sep-29-2016
|
|
$
|
15,000
|
|
|
$
|
417
|
|
|
1.3950
|
%
|
|
One-month L
|
|
Sep-29-2020
|
Royal Bank of Canada
|
|
Jan-08-2015
|
|
Mar-20-2015
|
|
$
|
25,000
|
|
|
$
|
684
|
|
|
1.7090
|
%
|
|
One-month L
|
|
Mar-21-2021
|
The Toronto-Dominion Bank
|
|
Jan-08-2015
|
|
Mar-20-2015
|
|
$
|
25,000
|
|
|
$
|
682
|
|
|
1.7105
|
%
|
|
One-month L
|
|
Mar-21-2021
|
The Toronto-Dominion Bank
|
|
Jan-08-2015
|
|
Sep-10-2017
|
|
$
|
100,000
|
|
|
$
|
1,488
|
|
|
2.2255
|
%
|
|
One-month L
|
|
Mar-21-2021
|
Wells Fargo, N.A.
|
|
Jan-08-2015
|
|
Mar-20-2015
|
|
$
|
25,000
|
|
|
$
|
886
|
|
|
1.8280
|
%
|
|
One-month L
|
|
Mar-31-2022
|
The Toronto-Dominion Bank
|
|
Jan-08-2015
|
|
Feb-14-2020
|
|
$
|
25,000
|
|
|
$
|
271
|
|
|
2.4535
|
%
|
|
One-month L
|
|
Mar-31-2022
|
Regions Bank
|
|
Jan-08-2015
|
|
Feb-14-2020
|
|
$
|
50,000
|
|
|
$
|
520
|
|
|
2.4750
|
%
|
|
One-month L
|
|
Mar-31-2022
|
Capital One, N.A.
|
|
Jan-08-2015
|
|
Feb-14-2020
|
|
$
|
50,000
|
|
|
$
|
467
|
|
|
2.5300
|
%
|
|
One-month L
|
|
Mar-31-2022
|
The Toronto-Dominion Bank
|
|
Jul-20-2017
|
|
Oct-30-2017
|
|
$
|
25,000
|
|
|
$
|
1,054
|
|
|
1.8485
|
%
|
|
One-month L
|
|
Jan-04-2023
|
Royal Bank of Canada
|
|
Jul-20-2017
|
|
Oct-30-2017
|
|
$
|
25,000
|
|
|
$
|
1,054
|
|
|
1.8505
|
%
|
|
One-month L
|
|
Jan-04-2023
|
Wells Fargo, N.A.
|
|
Jul-20-2017
|
|
Oct-30-2017
|
|
$
|
25,000
|
|
|
$
|
1,055
|
|
|
1.8505
|
%
|
|
One-month L
|
|
Jan-04-2023
|
PNC Bank, N.A.
|
|
Jul-20-2017
|
|
Oct-30-2017
|
|
$
|
25,000
|
|
|
$
|
1,052
|
|
|
1.8485
|
%
|
|
One-month L
|
|
Jan-04-2023
|
PNC Bank, N.A.
|
|
Jul-20-2017
|
|
Oct-30-2017
|
|
$
|
50,000
|
|
|
$
|
2,105
|
|
|
1.8475
|
%
|
|
One-month L
|
|
Jan-04-2023
|
The Toronto-Dominion Bank
|
|
Jul-24-2018
|
|
Jul-26-2019
|
|
$
|
50,000
|
|
|
$
|
111
|
|
|
2.9180
|
%
|
|
One-month L
|
|
Jan-12-2024
|
PNC Bank, N.A.
|
|
Jul-24-2018
|
|
Jul-26-2019
|
|
$
|
50,000
|
|
|
$
|
106
|
|
|
2.9190
|
%
|
|
One-month L
|
|
Jan-12-2024
|
Bank of Montreal
|
|
Jul-24-2018
|
|
Jul-26-2019
|
|
$
|
50,000
|
|
|
$
|
113
|
|
|
2.9190
|
%
|
|
One-month L
|
|
Jan-12-2024
|
U.S. Bank, N.A.
|
|
Jul-24-2018
|
|
Jul-26-2019
|
|
$
|
25,000
|
|
|
$
|
57
|
|
|
2.9190
|
%
|
|
One-month L
|
|
Jan-12-2024
|
Exhibit Number
|
|
Description of Document
|
10.1
|
|
|
10.2
|
|
|
10.3
|
|
|
10.4
|
|
|
10.5
|
|
|
10.6
|
|
|
31.1
|
|
|
31.2
|
|
|
32.1
|
|
|
101 *
|
|
The following materials from STAG Industrial, Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2018 formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income (Loss), (iv) the Consolidated Statements of Equity, (v) the Consolidated Statements of Cash Flows, and (vi) related notes to Consolidated Financial Statements
|
*
|
Filed herewith.
|
(1)
|
Incorporated by reference to STAG Industrial, Inc.’s Current Report on Form 8-K filed with the SEC on July 31, 2018.
|
|
|
STAG INDUSTRIAL, INC.
|
|
|
|
Date: November 1, 2018
|
BY:
|
/s/
WILLIAM R. CROOKER
|
|
|
William R. Crooker
|
|
|
Chief Financial Officer, Executive Vice President and Treasurer (Principal Financial Officer and Principal Accounting Officer)
|
1 Year Stag Industrial Chart |
1 Month Stag Industrial Chart |
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