STAG Industrial, Inc. (NYSE:STAG) Q3 2019 Earnings Conference Call - Final Transcript

Oct 31, 2019 • 10:00 am ET


STAG Industrial, Inc. (NYSE:STAG) Q3 2019 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the STAG Industrial Third Quarter 2019 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Matts Pinard, Senior Vice President of Investor Relations. Thank you, sir. You may begin.

Matts Pinard

Thank you.

Welcome to STAG Industrial's conference call covering the third quarter 2019 results. In addition to the press release distributed yesterday, we posted an unaudited quarterly supplemental informational presentation on the Company's website at under the Investor Relations section.

On today's call, the Company's prepared remarks and 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 trend, 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 of non-GAAP measures contained in the supplemental informational package also 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 will hear from Ben Butcher, our Chief Executive Officer, and Bill Crooker, our Chief Financial Officer.

I will now turn the call over to Ben.

Benjamin S. Butcher

Thank you, Matts. Good morning, everybody, and welcome to the third quarter earnings call for STAG Industrial.

We're pleased to have you join us and look forward to telling you about our third 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 questions specific to their areas of focus.

Yesterday we announced acquisition volume of just over $300 million for the third quarter. This brings our year-to-date total, including acquisitions that have closed subsequent to quarter-end, to approximately $875 million. As a result, we have raised the top end of our 2019 acquisition guidance to $1.2 billion, a significant increase from our initial volume guidance. We have already closed well in excess of any previous year's acquisition totals ensuring this will be the Company's most successful year on the external growth front.

At the same time, our operating metrics for the first three quarters of 2019 remained strong. We achieved cash releasing spreads of 11.4%, retention of 74% and same-store cash NOI growth of 1.9%. All of these metrics meet or have surpassed our initial and any subsequently increased 2019 guidance. This has prompted a further upward revision to our 2019 same store NOI guidance this quarter