STAG Industrial, Inc. (NYSE:STAG) Q1 2019 Earnings Conference Call - Final Transcript

May 01, 2019 • 10:00 am ET

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STAG Industrial, Inc. (NYSE:STAG) Q1 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, and welcome to the STAG Industrial First Quarter 2019 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Mr. Matts Pinard, Senior Vice President of Investor Relations for STAG Industrial. Thank you. You may begin.

Executive
Matts Pinard

Thank you. Welcome to STAG Industrial's conference call covering the first quarter 2019 results. In addition to the press release distributed yesterday, we posted an unaudited quarterly supplemental information presentation on the company's website at stagindustrial.com under the Investor Relations section.

On today's call, the company's prepared remarks and the answers to your questions will contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements address matters that are subject to risks and uncertainties that may cause actual results to differ from those discussed today. Examples of forward-looking statements include statements relating to earnings trends, G&A amounts, acquisition and disposition volumes, retention rates, debt capacity, dividend rates, industry and economic trends and other matters.

We encourage all of our listeners to review the more detailed discussion related to these forward-looking statements contained in the company's filings with the SEC and the definitions and reconciliations to non-GAAP measures contained in the supplemental information package available on the company's website. As a reminder, forward-looking statements represent management's estimates as of today. STAG Industrial assumes no obligation to update any forward-looking statements.

On today's call, you'll hear from Ben Butcher, our Chief Executive Officer; and Bill Crooker, our Chief Financial Officer. I will now turn the call over to Ben.

Executive
Benjamin S. Butcher

Thank you, Matts. Good morning, everybody, and welcome to the first quarter earnings call for STAG Industrial. We're pleased to have you join us and look forward to telling you about our first quarter results. Presenting today in addition to myself will be Bill Crooker, our Chief Financial Officer, who will discuss the bulk of the financial and operational data. Also with me today are Steve Mecke, our Chief Operating Officer; and Dave King, our Director of Real Estate operations. They will be available to answer your questions specific to their areas of focus.

Our first quarter operating results represent a great start to 2019. The $185 million of accretive acquisitions represents the largest first quarter acquisition volume in the history of our company by a significant margin. The portfolio produced 3.5% same-store NOI growth, reflecting a strong start to the year. These impressive metrics demonstrates STAG's ability to provide both external and internal growth. These operationally-based achievements are further supported by the continuing strength of underlying industrial fundamentals. The tenants in our portfolio are both healthy and active. They're continuing to sign leases with significant rollouts and elevated contractual rental escalators.

After many consecutive quarters of net industrial demand exceeding new supply, the elevated supply is projected to potentially reverse that balance in 2019. However, it is important to note that this excess supply is isolated in a handful of large primary markets, and in some