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What changed in STAG Industrial, Inc.'s 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of STAG Industrial, Inc.'s 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+248 added−273 removedSource: 10-K (2024-02-13) vs 10-K (2023-02-15)

Top changes in STAG Industrial, Inc.'s 2023 10-K

248 paragraphs added · 273 removed · 210 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

41 edited+2 added−10 removed39 unchanged
Biggest changeWe believe that our focus on owning and operating a portfolio of individually-acquired industrial properties throughout the United States will, when compared to other real estate portfolios, generate returns for our stockholders that are attractive in light of the associated risks for the following reasons. • Since many industrial properties have a single tenant, buyers tend to price an individual industrial property according to the binary nature of its cash flows – with only one potential tenant, the property is either generating revenue or not.
Biggest changeWe believe that our focus on owning and operating a portfolio of individually acquired industrial properties throughout CBRE-EA Tier 1 industrial markets in the United States will, when compared to other real estate portfolios, generate returns for our stockholders that are attractive in light of the associated risks for the following reasons. • The acquisition of individual properties has historically been more cost effective versus competing with a larger pool of buyers who may need to deploy significant capital quickly on large portfolio transactions. • Acquiring individually maintains our portfolio quality, as multi-asset portfolio acquisitions may include assets that are not desirable to us. • The contribution of individual assets to an aggregated portfolio creates diversification, thereby lowering risk and creating value. • Other institutional, industrial real estate buyers tend to focus on properties in a small number of super-primary markets.
Insurance We carry comprehensive general liability, fire, extended coverage and rental loss insurance covering all of the properties in our portfolio under a blanket insurance policy. In addition, we maintain a portfolio environmental insurance policy that provides coverage for potential environmental liabilities, subject to the policy’s coverage conditions and limitations.
Insurance We carry comprehensive general liability, fire, extended coverage and rental loss insurance covering all of the properties in our portfolio under blanket insurance. In addition, we maintain a portfolio environmental insurance policy that provides coverage for potential environmental liabilities, subject to the policy’s coverage conditions and limitations.
We conduct training to prevent discrimination and harassment and monitor and address employee conduct. • We are committed to compensating our employees well and at competitive industry rates while, at the same time, monitoring our compensation programs to ensure that we are continuously attracting and retaining top talent.
We conduct employee training to prevent discrimination and harassment and monitor and address employee conduct. • We are committed to compensating our employees well and at competitive industry rates while, at the same time, monitoring our compensation programs to ensure that we are continuously attracting and retaining top talent.
Also posted on our website, and available in print upon request, are charters of each committee of the board of directors, our code of business conduct and ethics and our corporate governance guidelines.
Also posted on our website, and available in print upon request, are charters of each independent committee of the board of directors, our code of business conduct and ethics and our corporate governance guidelines.
We are the sole member of the sole general partner of our Operating Partnership. As of December 31, 2022, we owned approximately 97.9% of the common units of limited partnership interest in our Operating Partnership (“common units”), and our current and former executive officers, directors, employees and their affiliates, and third parties owned the remaining 2.1%.
We are the sole member of the sole general partner of our Operating Partnership. As of December 31, 2023, we owned approximately 97.9% of the common units of limited partnership interest in our Operating Partnership (“common units”), and our current and former executive officers, directors, employees and their affiliates, and third parties owned the remaining 2.1%.
Additional information regarding our human capital programs and initiatives will be included in our definitive Proxy Statement for our 2023 Annual Meeting of Stockholders and is currently available under the “Corporate Responsibility” section of our website at www.stagindustrial.com.
Additional information regarding our human capital programs and initiatives will be included in our definitive Proxy Statement for our 2024 Annual Meeting of Stockholders and is currently available under the “Corporate Responsibility” section of our website at www.stagindustrial.com.
We also offer flexible spending accounts for medical and dependent care, a program to pay commuting and office parking costs with pre-tax income, and a competitive vacation policy, including paid holidays, personal time off, and other leave benefits. • We seek to foster a corporate culture where our stakeholders, including our employees, engage in, and collaborate to extend resources towards, community development.
We also offer flexible spending accounts for medical expenses, a program to pay commuting and office parking costs with pre-tax income, and a competitive vacation policy, including paid holidays, personal time off, and other leave benefits. • We seek to foster a corporate culture where our stakeholders, including our employees, engage in, and collaborate to extend resources towards, community development.
If a tenant is in a free rent period as of December 31, 2022, the total annualized base rental revenue is calculated based on the first contractual monthly base rent amount multiplied by 12.
If a tenant is in a free rent period as of December 31, 2023, the total annualized base rental revenue is calculated based on the first contractual monthly base rent amount multiplied by 12.
However, the information located on, or accessible from, our website is not, and should not be deemed to be, part of this report or incorporated into any other filing that we submit to the SEC. 8 Table of Contents Our Corporate Structure STAG Industrial, Inc. was incorporated in Maryland on July 21, 2010.
However, the information located on, or accessible from, our website is not, and should not be deemed to be, part of this report or incorporated into any other filing that we submit to the SEC. Our Corporate Structure STAG Industrial, Inc. was incorporated in Maryland on July 21, 2010.
In addition to the costs of cleanup, environmental contamination can affect the value of a property and, therefore, an owner’s ability to borrow using the property as collateral or to sell the property.
In addition to the costs of cleanup, environmental contamination can affect the value of a property and, therefore, an owner’s ability to borrow using the property as collateral (directly or indirectly) or to sell the property.
See Note 2 in the accompanying Notes to Consolidated Financial Statements under “Segment Reporting.” Corporate Responsibility Program We are committed to maintaining a robust corporate responsibility program that incorporates environmental, social and governance (“ESG”) initiatives into our overall business, investment, and asset management strategies. We are also committed to transparent reporting of our ESG initiatives.
See Note 2 in the accompanying Notes to Consolidated Financial Statements under “Segment Reporting.” Corporate Responsibility Program We maintain a corporate responsibility program that incorporates environmental, social and governance (“ESG”) initiatives into our overall business, investment, and asset management strategies. We are also committed to reporting of our ESG initiatives.
When redeeming common units for cash, the value of a share of our common stock is calculated as the average common stock closing price on the NYSE for the 10 trading days immediately preceding the redemption notice date.
When redeeming common units for cash, the value of a share of our common stock is 8 Table of Contents calculated as the average common stock closing price on the NYSE for the 10 trading days immediately preceding the redemption notice date.
Competition In acquiring our target properties, we compete primarily with local or regional operators due to the smaller, single asset (versus portfolio) focus of our acquisition strategy. From time to time we compete with other public industrial property sector REITs, single-tenant REITs, income oriented non-traded REITs, and private real estate funds.
Competition In acquiring our target properties, we often compete with local or regional operators due to the smaller, single asset (versus portfolio) focus of our acquisition strategy. We also we compete with other public industrial property sector REITs, single-tenant REITs, income oriented non-traded REITs, and private real estate funds.
All reports, proxy and information statements and other information we file with the SEC are also available free of charge through the SEC’s website at www.sec.gov.
All reports, proxy and information statements and other information we file with the SEC are also available free of charge through the SEC’s website at www.sec.gov. 9 Table of Contents
Through our partnerships with these organizations, in recent years, our employees have committed significant time and resources to support children and young adults, including through personal donations, fundraising, and volunteer work. As of December 31, 2022, we had 93 employees. None of our employees are represented by a labor union.
Through our partnerships with these organizations, in recent years, our employees have committed significant time and resources to support children and young adults, including through personal donations, fundraising, and volunteer work. As of December 31, 2023, we had 95 employees, none represented by a labor union.
Local real estate investors historically have represented our predominant competition for deals and they typically do not have the same access to capital that we do as a publicly traded institution. We also face significant competition from owners and managers of competing properties in leasing our properties to prospective tenants and in re-leasing space to existing tenants.
Local real estate investors typically do not have the same access to capital that we do as a publicly traded institution. We also face significant competition from owners and managers of competing properties in leasing our properties to prospective tenants and in re-leasing space to existing tenants.
Our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K and any amendments to any of those reports that we file with the SEC are available free of charge as soon as reasonably practicable through our website at www.stagindustrial.com.
Our telephone number is (617) 574-4777. Our website is www.stagindustrial.com. Our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K and any amendments to any of those reports that we file with the SEC are available free of charge as soon as reasonably practicable through our website at www.stagindustrial.com.
“Comparable Lease” means 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.
“Comparable Lease” means 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. “GAAP” means generally accepted accounting principles in the United States.
As of December 31, 2022, our buildings were approximately 98.5% leased, with no single tenant accounting for more than approximately 3.0% of our total annualized base rental revenue and no single industry accounting for more than approximately 10.9% of our total annualized base rental revenue.
As of December 31, 2023, our buildings were approximately 98.2% leased, with no single tenant accounting for more than approximately 2.9% of our total annualized base rental revenue and no single industry accounting for more than approximately 11.0% of our total annualized base rental revenue.
“Cash Rent Change” means the percentage change in the base rent of the lease commenced during the period compared to the base rent of the Comparable Lease for assets included in the Operating Portfolio.
Item 1. Business Certain Definitions In this report: “Cash Rent Change” means the percentage change in the base rent of the lease commenced during the period compared to the base rent of the Comparable Lease for assets included in the Operating Portfolio.
“Occupancy rate” means 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.
“Occupancy rate” means 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. “Operating Portfolio” means all buildings that were acquired stabilized or have achieved Stabilization.
Some of our buildings are known to have asbestos containing materials, and others, due to the age of the building and observed conditions, are suspected of having asbestos containing materials. We do not believe these conditions will materially and adversely affect us.
Some of our buildings are known to have asbestos containing materials, and others, due to the age of the building and observed conditions, are suspected of having asbestos containing materials. We do not believe these conditions will materially and adversely affect us. In most or all instances, no immediate action was recommended to address the conditions.
The ADA may require removal of structural barriers to access by persons with disabilities in certain public areas of our properties where such removal is readily achievable.
Under the ADA, places of public accommodation must meet certain federal requirements related to access and use by disabled persons. The ADA may require removal of structural barriers to access by persons with disabilities in certain public areas of our properties where such removal is readily achievable.
Operating Segments We manage our operations on an aggregated, single segment basis for purposes of assessing performance and making operating decisions, and accordingly, have only one reporting and operating segment.
Those owners and managers may be national, regional, or local operators, public or private. Operating Segments We manage our operations on an aggregated, single segment basis for purposes of assessing performance and making operating decisions, and accordingly, have only one reporting and operating segment.
In December 2021, we published our inaugural 2020-2021 Environmental, 7 Table of Contents Social and Governance Report, which includes information regarding our ESG policies and programs, historic results, and performance targets, including a new long-term greenhouse gas (GHG) reduction goal as approved by the Science-Based Targets Initiative (SBTi).
Since December 2021, we have published an annual “Environmental, Social and Governance Report”, which includes information regarding our ESG policies and programs, historic results, and performance targets, including our long-term greenhouse gas (GHG) reduction goal as approved by the Science-Based Targets Initiative (SBTi).
An example would be laws that require a business using chemicals to manage them carefully and to notify local officials that the chemicals are being used. We could be responsible for any of the costs discussed above.
Lastly, some of these environmental laws restrict the use of a property or place conditions on various activities. An example would be laws that require a business using chemicals to manage them carefully and to notify local officials that the chemicals are being used. 6 Table of Contents We could be responsible for any of the costs discussed above.
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.
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. “Stabilization” for properties under development or being redeveloped means the earlier of achieving 90% occupancy or 12 months after completion.
“Renewal Lease” means a lease signed by an existing tenant to extend the term for 12 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, or (iii) an early renewal or workout, which ultimately does extend the original term for 12 months or more. 4 Table of Contents “Weighted Average Lease Term” means the contractual lease term in years, assuming that tenants exercise no renewal options, purchase options, or early termination rights, weighted by square footage.
“Renewal Lease” means a lease signed by an existing tenant to extend the term for 12 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, or (iii) an early renewal or workout, which ultimately does extend the original term for 12 months or more.
“Value Add Portfolio” means our properties that meet any of the following criteria: (i) less than 75% occupied as of the acquisition date (ii) will be less than 75% occupied due to known move-outs within two years of the acquisition date; (iii) out of service with significant physical renovation of the asset; or (iv) development.
“Value Add Portfolio” means our properties that meet any of the following criteria: (i) less than 75% occupied as of the acquisition date (ii) will be less than 75% occupied due to known move-outs within two years of the acquisition date; (iii) out of service with significant physical renovation of the asset; or (iv) development. 4 Table of Contents “Weighted Average Lease Term” means the contractual lease term in years, assuming that tenants exercise no renewal options, purchase options, or early termination rights, weighted by square footage.
As of December 31, 2022, our Operating Portfolio was approximately 99.0% leased and our SL Rent Change on new and renewal leases together grew approximately 24.3% and 17.6% during the years ended December 31, 2022 and 2021, respectively, and our Cash Rent Change on new and renewal leases together grew approximately 14.3% and 10.4% during the years ended December 31, 2022 and 2021, respectively.
SL Rent Change on new and renewal leases together grew approximately 44.0% and 24.3% during the years ended December 31, 2023 and 2022, respectively, and our Cash Rent Change on new and renewal leases together grew approximately 31.0% and 14.3% during the years ended December 31, 2023 and 2022, respectively.
This UPREIT structure provides us an opportunity to acquire properties on a tax-deferred basis by issuing common units in our Operating Partnership in exchange for properties. 9 Table of Contents The following is a simplified diagram of our UPREIT structure at December 31, 2022.
This UPREIT structure provides us an opportunity to acquire properties on a tax-deferred basis by issuing common units in our Operating Partnership in exchange for properties. The following is a simplified diagram of our UPREIT structure at December 31, 2023. Additional Information Our principal executive offices are located at One Federal Street, 23rd Floor, Boston, Massachusetts 02110.
Item 1. Business Certain Definitions In this report: “GAAP” means generally accepted accounting principles in the United States. “Total annualized base rental revenue” means the contractual monthly base rent as of December 31, 2022 (which differs from rent calculated in accordance with GAAP) multiplied by 12.
“Total annualized base rental revenue” means the contractual monthly base rent as of December 31, 2023 (which differs from rent calculated in accordance with GAAP) multiplied by 12.
Our Strategy Our primary business objectives are to own and operate a balanced and diversified portfolio of binary risk investments (individual industrial properties) that maximize cash flows available for distribution to our stockholders, and to enhance stockholder value over time by achieving sustainable long-term growth in distributable cash flow from operations per share.
Our Strategy Our primary business objectives are to own and operate a balanced and diversified portfolio that fits the needs of the markets we operate in, add value to the assets we acquire, and to enhance stockholder value over time by achieving sustainable long-term growth in distributable cash flow from operations.
While the majority of our portfolio consists of single-tenant properties, we also own multi-tenant properties and may re-lease originally single-tenant properties to multiple tenants.
While the majority of our portfolio consists of single-tenant properties, we also own a growing number of multi-tenant properties.
For instance, a person exposed to asbestos at one of our properties may seek to recover damages if he or she suffers injury from the asbestos. Lastly, some of these environmental laws restrict the use of a property or place conditions on various activities.
Furthermore, various court decisions have established that third parties may recover damages for injury caused by property contamination. For instance, a person exposed to asbestos at one of our properties may seek to recover damages if he or she suffers injury from the asbestos.
We intend to maintain a diversified mix of tenants to limit our exposure to any single tenant.
We intend to maintain a diversified mix of tenants to limit our exposure to any single tenant or industry. As of December 31, 2023, our Operating Portfolio was approximately 98.4% leased.
Americans with Disabilities Act Our properties must comply with Title III of the Americans with Disabilities Act of 1990, as amended (the “ADA”) to the extent that such properties are “public accommodations” as defined under the ADA. Under the ADA, places of public accommodation must meet certain federal requirements related to access and use by disabled persons.
We believe that we or our tenants, as applicable, have the necessary permits and approvals to operate each of our properties. Americans with Disabilities Act Our properties must comply with Title III of the Americans with Disabilities Act of 1990, as amended (the “ADA”) to the extent that such properties are “public accommodations” as defined under the ADA.
We seek to (i) identify properties for acquisition that offer relative value across all locations, industrial property types, and tenants through the principled application of our proprietary risk assessment model, (ii) operate our properties in an efficient, cost-effective manner, and (iii) capitalize our business appropriately given the characteristics of our assets.
Our platform is designed to (i) identify properties for acquisition that offer relative value across CBRE-EA Tier 1 industrial real estate markets, industries, and tenants through the principled application of our proprietary risk assessment model, (ii) provide growth through sophisticated industrial operation and an attractive opportunity set, and (iii) capitalize our business appropriately given the characteristics of our assets.
As of December 31, 2022, we owned 562 buildings in 41 states with approximately 111.7 million rentable square feet, consisting of 484 warehouse/distribution buildings, 74 light manufacturing buildings, one flex/office building, and three Value Add Portfolio buildings.
As of December 31, 2023, we owned 569 buildings in 41 states with approximately 112.3 million rentable square feet, consisting of 493 warehouse/distribution buildings, 70 light manufacturing buildings, one flex/office building, and five Value Add Portfolio buildings. In addition, as of December 31, 2023, we had six development projects (which are not included in the building count noted above).
“Operating Portfolio” means all warehouse and light manufacturing assets that were acquired stabilized or have achieved Stabilization. The Operating Portfolio excludes non-core flex/office assets, assets contained in the Value Add Portfolio, and assets classified as held for sale.
The Operating Portfolio excludes non-core flex/office buildings, buildings contained in the Value Add Portfolio, and buildings classified as held for sale.
Additional information regarding our corporate responsibility program will be included in our definitive Proxy Statement for our 2023 Annual Meeting of Stockholders and our 2020-2021 Environmental, Social and Governance Report is currently available under the “Corporate Responsibility” section of our website at www.stagindustrial.com.
In addition, annually we participate in the public disclosure rating process of the Global Real Estate Sustainability Benchmark, which is an entity that provides a ranking system to evaluate and compare ESG practices in the real estate industry. 7 Table of Contents Additional information regarding our corporate responsibility program will be included in our definitive Proxy Statement for our 2024 Annual Meeting of Stockholders and our 2022 Environmental, Social and Governance Report, or sustainability report, is currently available under the “Corporate Responsibility” section of our website at www.stagindustrial.com.
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“Stabilization” for properties under development or being redeveloped means, the earlier of achieving 90% occupancy or 12 months after completion.
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We have fully integrated acquisition, leasing and operations platforms led by a senior management team with decades of industrial real estate experience. Our mission is to deliver attractive long-term stockholder returns in all market environments by growing cash flow through disciplined investment in high-quality real estate while maintaining a strong balance sheet.
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We have a fully-integrated acquisition, leasing and asset management platform, and our senior management team has a significant amount of industrial real estate experience. Our mission is to continue to be a disciplined, relative value investor and a leading owner and operator of industrial properties in the United States.
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In contrast, we choose from a larger opportunity set of industrial properties across all CBRE-EA Tier 1 industrial markets in the United States. • Our wider focus results in an advantage versus the local and regional buyers we compete with in many non-super-primary markets for acquisition opportunities who may not have the same access to debt or equity capital as us. • Industrial properties generally require less capital expenditure than other commercial property types. 5 Table of Contents Regulation General We are subject to various laws, ordinances, rules and regulations of the United States and the states and local municipalities in which we own properties, including regulations relating to common areas and fire and safety requirements.
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We seek to deliver attractive stockholder returns in all market environments by providing a covered dividend combined with accretive growth.
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Furthermore, if a single-tenant industrial property is vacant and not generating revenue, the owner will be responsible for paying the operating expenses at the property (which are typically covered by the tenant).
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As a result of these factors, we believe the market prices single-tenant industrial properties based upon a higher risk profile, and therefore, applies a lower value relative to a diversified cash flowing investment. • The acquisition and contribution of individual single-tenant industrial properties (and each property’s binary risk cash flows) to an aggregated portfolio creates diversification, thereby lowering risk and creating value. • Industrial properties generally require less capital expenditure than other commercial property types and single-tenant properties generally require less expenditure for leasing, operating, and capital costs per property than multi-tenant properties. 5 Table of Contents • Other institutional, industrial real estate buyers tend to focus on properties and portfolios in certain primary markets.
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In contrast, we focus on individual industrial properties across many markets. As a result, our typical competitors for acquisition opportunities are local investors who may not have the same access to debt or equity capital as us. In our fragmented, predominantly non-institutional environment, a sophisticated, institutional platform with access to capital has execution and operational advantages.
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Regulation General We are subject to various laws, ordinances, rules and regulations of the United States and the states and local municipalities in which we own properties, including regulations relating to common areas and fire and safety requirements. We believe that we or our tenants, as applicable, have the necessary permits and approvals to operate each of our properties.
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In most or all instances, no immediate action was recommended to address the conditions. 6 Table of Contents Furthermore, various court decisions have established that third parties may recover damages for injury caused by property contamination.
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In addition, annually we participate in the public disclosure rating process of the Global Real Estate Sustainability Benchmark, which is an entity that provides a ranking system to evaluate and compare ESG practices in the real estate industry.
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Additional Information Our principal executive offices are located at One Federal Street, 23rd Floor, Boston, Massachusetts 02110. Our telephone number is (617) 574-4777. Our website is www.stagindustrial.com.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

43 edited+7 added−3 removed175 unchanged
Biggest changeFurther, if we borrow funds to make distributions, our future interest costs would increase, thereby reducing our earnings and cash available for distribution from what they otherwise would have been.
Biggest changeFurther, if we borrow funds to make distributions, our future interest costs would increase, thereby reducing our earnings and cash available for distribution from what they otherwise would have been. 15 Table of Contents The number of shares of our common stock available for future sale, and future offerings of debt or equity securities may be dilutive to existing stockholders and adversely affect the market price of our common stock.
Income from and the value of our properties may be adversely affected by, among other things: • a global economic crisis that results in increased budget deficits and weakened financial condition of international, national and local governments, which may lead to reduced governmental spending, tax increases, public sector job losses, increased interest rates, currency devaluations, defaults on debt obligations or other adverse economic events; • other periods of economic slowdown or recession, rising interest rates or declining demand for real estate, or the public perception that any of these events may occur; • tenant turnover, the attractiveness of our properties to potential tenants and changes in supply of, or demand for, similar or competing properties in an area (including from general overbuilding or excess supply in the market); • technological changes, such as reconfiguration of supply chains, autonomous vehicles, drones, robotics, 3D printing, online marketplaces for industrial space, or other developments; • our ability to control rental rates and changes in operating costs and expenses, including costs of compliance with tax, real estate, environmental and zoning laws, rules and regulations and our potential liability thereunder; • changes in the cost or availability of insurance, including coverage for mold or asbestos; • unanticipated changes in costs associated with known adverse environmental conditions or retained liabilities for such conditions; • periods of high interest rates and tight money supply; • future terrorist attacks, which may result in declining economic activity, which could reduce the demand for, and the value of, our properties, and may adversely affect our tenants’ business and their ability to continue to honor their existing lease ; and • disruptions in the global supply chain caused by political, regulatory or other factors, including geopolitical developments outside the United States.
Income from and the value of our properties may be adversely affected by, among other things: • a global economic crisis that results in increased budget deficits and weakened financial condition of international, national and local governments, which may lead to reduced governmental spending, tax increases, public sector job losses, increased interest rates, currency devaluations, defaults on debt obligations or other adverse economic events; • other periods of economic slowdown or recession, rising interest rates or declining demand for real estate, or the public perception that any of these events may occur; • tenant turnover, the attractiveness of our properties to potential tenants and changes in supply of, or demand for, similar or competing properties in an area (including from general overbuilding or excess supply in the market); 16 Table of Contents • technological changes, such as reconfiguration of supply chains, autonomous vehicles, drones, robotics, 3D printing, online marketplaces for industrial space, or other developments; • our ability to control rental rates and changes in operating costs and expenses, including costs of compliance with tax, real estate, environmental and zoning laws, rules and regulations and our potential liability thereunder; • changes in the cost or availability of insurance, including coverage for mold or asbestos; • unanticipated changes in costs associated with known adverse environmental conditions or retained liabilities for such conditions; • periods of high interest rates and tight money supply; • future terrorist attacks, which may result in declining economic activity, which could reduce the demand for, and the value of, our properties, and may adversely affect our tenants’ business and their ability to continue to honor their existing lease ; and • disruptions in the global supply chain caused by political, regulatory or other factors, including geopolitical developments outside the United States.
In advance of the cessation of LIBOR on June 30, 2023, we amended our unsecured credit facility and term loans to be based on one-month Term SOFR, and as of December 31, 2022, we had no LIBOR-based debt or financial contracts.
In advance of the cessation of LIBOR on June 30, 2023, we amended our unsecured credit facility and term loans to be based on one-month Term SOFR, and as of December 31, 2023, we had no LIBOR-based debt or financial contracts.
For example, our board of directors can, among other things, (i) change our investment, financing and borrowing strategies and our policies with respect to all other activities, including distributions, leasing, debt, capitalization and operations (including creditworthiness 14 Table of Contents standards with respect to our tenants), (ii) subject to provisions in our charter, prevent the ownership, transfer and accumulation of shares in order to protect our status as a REIT or for any other reason deemed to be in the best interests of us and our stockholders, (iii) issue additional shares (which could dilute the ownership of existing stockholders) and increase or decrease the aggregate number of shares or the number of shares of any class or series or classify or reclassify any unissued shares, without obtaining stockholder approval, and (iv) determine that it is no longer in our best interests to continue to qualify as a REIT.
For example, our board of directors can, among other things, (i) change our investment, financing and borrowing strategies and our policies with respect to all other activities, including distributions, leasing, debt, capitalization and operations (including creditworthiness standards with respect to our tenants), (ii) subject to provisions in our charter, prevent the ownership, transfer and accumulation of shares in order to protect our status as a REIT or for any other reason deemed to be in the best interests of us and our stockholders, (iii) issue additional shares (which could dilute the ownership of existing stockholders) and increase or decrease the aggregate number of shares or the number of shares of any class or series or classify or reclassify any unissued shares, without obtaining stockholder approval, and (iv) determine that it is no longer in our best interests to continue to qualify as a REIT.
As of December 31, 2022, we have not obtained and do not expect to obtain key man life insurance on any of our key personnel. We also believe that, as we expand, our future success will depend upon our ability to hire and retain highly skilled managerial, investment, financing, operational, and marketing personnel.
As of December 31, 2023, we have not obtained and do not expect to obtain key man life insurance on any of our key personnel. We also believe that, as we expand, our future success will depend upon our ability to hire and retain highly skilled managerial, investment, financing, operational, and marketing personnel.
Changes to tax laws, with or without retroactive application, through new legislation, 22 Table of Contents Treasury Regulations, administrative interpretations or court decisions could adversely affect us or our stockholders, including by negatively affecting our ability to qualify as a REIT or the federal income tax consequences of such qualification, or reducing the relative attractiveness of an investment in a REIT compared to a corporation not qualified as a REIT.
Changes to tax laws, with or without retroactive application, through new legislation, Treasury Regulations, administrative interpretations or court decisions could adversely affect us or our stockholders, including by negatively affecting our ability to qualify as a REIT or the federal income tax consequences of such qualification, or reducing the relative attractiveness of an investment in a REIT compared to a corporation not qualified as a REIT.
The compensation committee has significant discretion in structuring these compensation packages and may make compensation decisions based on any number of factors. As a result, compensation awards may not be tied to or correspond with improved financial results at the Company or the market prices for our securities. 23 Table of Contents Item 1B. Unresolved Staff Comments None.
The compensation committee has significant discretion in structuring these compensation packages and may make compensation decisions based on any number of factors. As a result, compensation awards may not be tied to or correspond with improved financial results at the Company or the market prices for our securities. Item 1B. Unresolved Staff Comments None.
Moreover, there can be no assurance that future laws, ordinances or regulations will not impose any material environmental 18 Table of Contents liability, or the current environmental condition of our properties will not be affected by tenants, by the condition of land or operations in the vicinity of our properties (such as releases from underground storage tanks), or by third parties unrelated to us.
Moreover, there can be no assurance that future laws, ordinances or regulations will not impose any material environmental liability, or the current environmental condition of our properties will not be affected by tenants, by the condition of land or operations in the vicinity of our properties (such as releases from underground storage tanks), or by third parties unrelated to us.
Our investments are concentrated in the industrial real estate sector, and we would be adversely affected by an economic downturn in that sector. As of December 31, 2022, the majority of our buildings were industrial properties.
Our investments are concentrated in the industrial real estate sector, and we would be adversely affected by an economic downturn in that sector. As of December 31, 2023, the majority of our buildings were industrial properties.
While we have the right to purchase the fee interests in these properties for a nominal purchase price, in the event of such a conversion, any preferential tax treatment offered by the PILOT programs will be lost. We may be unable to sell properties, including as a result of uncertain market conditions.
While we have the right to purchase the fee interests in these properties for a nominal purchase price, in the event of such a conversion, any preferential tax treatment offered by the PILOT programs will be lost. 18 Table of Contents We may be unable to sell properties, including as a result of uncertain market conditions.
We cannot assure you that our hedging strategies and derivative financial instruments will adequately offset the risk of interest rate volatility or that such instruments will not result in losses that may adversely impact our financial condition. Adverse changes in our credit ratings could negatively affect our financing activity.
We cannot assure you that our hedging strategies and derivative financial instruments will adequately offset the risk of interest rate volatility or that such instruments will not result in losses that may adversely impact our financial condition. 20 Table of Contents Adverse changes in our credit ratings could negatively affect our financing activity.
For example, we are unable to modify the rights of limited partners to receive distributions as set forth in the Operating Partnership agreement in a manner that adversely affects their rights without their consent, even though such modification might be in the best interest of our stockholders.
For example, we are unable to modify the rights of limited partners to receive distributions as set forth in the Operating Partnership agreement in a manner that 14 Table of Contents adversely affects their rights without their consent, even though such modification might be in the best interest of our stockholders.
In addition, if we need to repay existing debt during periods of rising interest rates, we could be required to sell one or more of our properties at times which may not permit realization of the maximum return on such investments.
In 19 Table of Contents addition, if we need to repay existing debt during periods of rising interest rates, we could be required to sell one or more of our properties at times which may not permit realization of the maximum return on such investments.
Any failure to maintain effective internal controls could have a material adverse effect on our business, operating results and market prices of our securities. 15 Table of Contents Risks Related to Ownership of Our Common Stock The market price and trading volume of our common stock may be volatile.
Any failure to maintain effective internal controls could have a material adverse effect on our business, operating results and market prices of our securities. Risks Related to Ownership of Our Common Stock The market price and trading volume of our common stock may be volatile.
In addition, any potential change of control transaction may be further limited as a result of provisions related to the long-term incentive plan units in our Operating Partnership (“LTIP units”) granted under the STAG Industrial, Inc. 2011 Equity Incentive Plan, as amended and restated (the “2011 Plan”), which require us to preserve the rights of LTIP unit holders and may restrict us from amending the Operating Partnership agreement in a manner that would have an adverse effect on the rights of LTIP unit holders.
In addition, any potential change of control transaction may be further limited as a result of provisions related to the limited partnership interests designated as “LTIP Units” in our Operating Partnership (“LTIP units”) granted under the STAG Industrial, Inc. 2011 Equity Incentive Plan, as amended and restated (the “2011 Plan”), which require us to preserve the rights of LTIP unit holders and may restrict us from amending the Operating Partnership agreement in a manner that would have an adverse effect on the rights of LTIP unit holders.
If any tenant is unable to withstand such adverse event or downturn or is otherwise unable to 11 Table of Contents compete effectively in its market or business, it may be unable to meet its rental obligations, seek rental concessions, be unable to enter into new leases or forced to declare bankruptcy and reject our leases, which could materially and adversely affect us.
If any tenant is unable to withstand such adverse event or downturn or is otherwise unable to compete effectively in its market or business, it may be unable to meet its rental obligations, seek rental concessions, be unable to enter into new leases or forced to declare bankruptcy and reject our leases, which could materially and adversely affect us.
If our competitors offer space at rental rates below current market rates or below the rental rates we currently charge our tenants, we may lose potential tenants, and we may be pressured to lower 12 Table of Contents our rental rates or to offer more substantial tenant improvements, early termination rights, below-market renewal options or other lease incentive payments to remain competitive.
If our competitors offer space at rental rates below current market rates or below the rental rates we currently charge our tenants, we may lose potential tenants, and we may be pressured to lower our rental rates or to offer more substantial tenant improvements, early termination rights, below-market renewal options or other lease incentive payments to remain competitive.
The issuance of preferred stock could have the effect of delaying or preventing a transaction or a change of control that might be in the best interests of stockholders. Certain provisions in the Operating Partnership agreement may delay or prevent a change of control.
The issuance of preferred stock could have the effect of delaying or preventing a transaction or a change of control that might be in the best interests of stockholders. 13 Table of Contents Certain provisions in the Operating Partnership agreement may delay or prevent a change of control.
Competition for such personnel is intense, and we cannot assure you that we will be successful in attracting and retaining such skilled personnel. An increased focus on metrics and reporting related to corporate responsibility, specifically related to ESG factors, may impose additional costs and expose us to new risks.
Competition 22 Table of Contents for such personnel is intense, and we cannot assure you that we will be successful in attracting and retaining such skilled personnel. An increased focus on metrics and reporting related to corporate responsibility, specifically related to ESG factors, may impose additional costs and expose us to new risks.
Our operating results and financial condition could be negatively affected to the extent that an economic slowdown or downturn is prolonged or becomes more severe. Recent macroeconomic trends, including inflation and rising interest rates, may adversely affect our business, financial condition and results of operations.
Our operating results and financial condition could be negatively affected to the extent that an economic slowdown or downturn is prolonged or becomes more severe. Recent macroeconomic trends, including inflation and rising interest rates, and developments affecting the financial services industry, may adversely affect our business, financial condition and results of operations.
Because of these requirements, we may not be able to fund future capital 13 Table of Contents needs, including acquisition financing, from operating cash flow and rely on third-party sources to fund our capital needs.
Because of these requirements, we may not be able to fund future capital needs, including acquisition financing, from operating cash flow and rely on third-party sources to fund our capital needs.
The future issuance of any shares of 16 Table of Contents common stock upon settlement of any forward sale agreement will result in dilution to our earnings per share, return on equity, and dividends per share.
The future issuance of any shares of common stock upon settlement of any forward sale agreement will result in dilution to our earnings per share, return on equity, and dividends per share.
In addition, dividends to stockholders would no longer qualify for the dividends‑paid deduction and we would no longer be required to make 21 Table of Contents distributions. If this occurs, we might be required to borrow funds or liquidate some investments in order to pay the applicable tax.
In addition, dividends to stockholders would no longer qualify for the dividends‑paid deduction and we would no longer be required to make distributions. If this occurs, we might be required to borrow funds or liquidate some investments in order to pay the applicable tax.
Whether or not Term SOFR attains market acceptance as a LIBOR replacement tool remains uncertain. 20 Table of Contents Our loan covenants could limit our flexibility and adversely affect our financial condition and ability to make distributions.
Whether or not Term SOFR attains market acceptance as a LIBOR replacement tool remains uncertain. Our loan covenants could limit our flexibility and adversely affect our financial condition and ability to make distributions.
Environmental laws require owners of buildings containing asbestos properly manage and maintain the asbestos, adequately inform or train those who may come into contact with asbestos and undertake special precautions in the event that asbestos is disturbed during building renovation or demolition.
Some of our properties contain asbestos‑containing building materials. Environmental laws require owners of buildings containing asbestos properly manage and maintain the asbestos, adequately inform or train those who may come into contact with asbestos and undertake special precautions in the event that asbestos is disturbed during building renovation or demolition.
As of December 31, 2022, we had total outstanding debt of approximately $2.5 billion, including approximately $175.0 million of debt subject to variable interest rates (excluding amounts that were hedged to fix rates), and we expect that we will incur additional indebtedness in the future. Interest we pay on outstanding debt reduces our cash available for distribution.
As of December 31, 2023, we had total outstanding debt of approximately $2.6 billion, including approximately $402.0 million of debt subject to variable interest rates (excluding amounts that were hedged to fix rates), and we expect that we will incur additional indebtedness in the future. Interest we pay on outstanding debt reduces our cash available for distribution.
We have owned many of our properties for a limited time, and we may not be aware of characteristics or deficiencies involving any one or all of them. Of the properties in our portfolio at December 31, 2022, 266 buildings totaling approximately 52.3 million rentable square feet have been acquired in the past five years.
We have owned many of our properties for a limited time, and we may not be aware of characteristics or deficiencies involving any one or all of them. Of the properties in our portfolio at December 31, 2023, 231 buildings totaling approximately 44.7 million rentable square feet have been acquired in the past five years.
As of December 31, 2022, leases with respect to approximately 19.5% (excluding month-to-month leases) of our total annualized base rental revenue will expire before December 31, 2024. We cannot assure you that expiring leases will be renewed or that our properties will be re-leased at base rental rates equal to or above the current market rental rates.
As of December 31, 2023, leases with respect to approximately 18.9% (excluding month-to-month leases) of our total annualized base rental revenue will expire before December 31, 2025. We cannot assure you that expiring leases will be renewed or that our properties will be re-leased at base rental rates equal to or above the current market rental rates.
Coupled with changes in Federal Reserve policies on interest rates and other economic disruptions, this war has, and may continue to, exacerbate inflation and adversely affect economic and market conditions, the level and volatility of real estate and securities prices and the liquidity of our investments.
Coupled with changes in Federal Reserve policies on interest rates and other economic disruptions, such circumstances may exacerbate inflation and adversely affect economic and market conditions, the level and volatility of real estate and securities prices and the liquidity of our investments.
In connection with the acquisition and ownership of our properties, we may be exposed to such costs. The costs of compliance with environmental regulatory requirements, defending against environmental claims or remediation of any contaminated property could materially adversely affect our business, operating results and cash available for distribution to stockholders. Some of our properties contain asbestos‑containing building materials.
In connection with the acquisition and ownership of our properties, we may be exposed to such costs. The costs of compliance with environmental regulatory requirements, defending against 17 Table of Contents environmental claims or remediation of any contaminated property could materially adversely affect our business, operating results and cash available for distribution to stockholders.
If such disruptions worsen or continue for a prolonged period of time, any of these tenants may be unable to obtain financing necessary to continue to operate its business, unable to meet its rental obligations, unable to enter into new leases or forced to declare bankruptcy and reject our leases, which could materially and adversely affect us.
If such disruptions worsen or continue for a prolonged period of time, any of these tenants may be unable to obtain financing necessary to continue to operate its business, unable to meet its rental obligations, unable to enter into new leases or forced to declare bankruptcy and reject our leases, which could materially and adversely affect us. 12 Table of Contents Any future public health crisis, pandemic, epidemic or outbreak of infectious disease could have material and adverse effects on our business, operating results, financial condition and cash flows.
In addition, our investments could be materially adversely affected by changes in national and international political, environmental and socioeconomic circumstances, such as the conflict between Russia and Ukraine and its impact on macroeconomic conditions.
In addition, our investments could be materially adversely affected by changes in national and international political, environmental and socioeconomic circumstances, such as Russia’s invasion of Ukraine and the Israel-Hamas war, the possibility of such conflicts widening and their impact on macroeconomic conditions.
When we acquire properties located in these markets, we face risks associated with a lack of market knowledge or understanding of the local economy (including that competitors and counterparties may have much greater knowledge and understanding), forging new business relationships in the area and unfamiliarity with local government and laws.
When we acquire properties located in these markets, we face risks associated with a lack of market knowledge or understanding of the local economy (including that competitors and counterparties may have much greater knowledge and understanding), forging new business relationships in the area and unfamiliarity with local government and laws. 11 Table of Contents A significant portion of our properties have leases that expire in the next two years and we may be unable to renew leases, lease vacant space or re-lease space on favorable terms.
As military conflicts and related economic sanctions continue to evolve, it has become increasingly difficult to predict the impact of these events. 17 Table of Contents Real estate investments are not as liquid as other types of investments.
As military conflicts and related economic sanctions continue to evolve, it has become increasingly difficult to predict the impact of these events. Real estate investments are not as liquid as other types of investments. The lack of liquidity in real estate investments may limit our ability to vary our portfolio and react promptly to changes in economic or other conditions.
The lack of liquidity in real estate investments may limit our ability to vary our portfolio and react promptly to changes in economic or other conditions. In addition, significant expenditures associated with real estate investments, such as mortgage payments, real estate taxes and maintenance costs, are generally not reduced when circumstances cause a reduction in income from the investments.
In addition, significant expenditures associated with real estate investments, such as mortgage payments, real estate taxes and maintenance costs, are generally not reduced when circumstances cause a reduction in income from the investments.
During the year ended December 31, 2022, inflation in the United States accelerated and is currently expected to continue at an elevated level in the near-term. Beginning in 2022, in an effort to combat inflation and restore price stability, the Federal Reserve significantly raised its benchmark federal funds rate, which led to increases in interest rates in the credit markets.
Beginning in 2022, in an effort to combat inflation and restore price stability, the Federal Reserve significantly raised its benchmark federal funds rate, which led to increases in interest rates in the credit markets.
Item 1A. Risk Factors The following risk factors and other information included in this report should be carefully considered. The risks and uncertainties described below are not the only risks we face.
Item 1A. Risk Factors The following risk factors and other information included in this report should be carefully considered. The risks and uncertainties described below are not the only risks we face. Additional risks and uncertainties not presently known to us or that we may currently deem immaterial also may impair our business operations.
Re-characterization of sale‑leaseback transactions may cause us to lose our REIT status. In certain circumstances, we expect to purchase properties and lease them back to the sellers of such properties.
Thus, compliance with the REIT requirements may hinder our ability to operate solely on the basis of maximizing profits and the value of our stockholders’ investment. 21 Table of Contents Re-characterization of sale‑leaseback transactions may cause us to lose our REIT status. In certain circumstances, we expect to purchase properties and lease them back to the sellers of such properties.
We may be required to make distributions to stockholders at times when it would be more advantageous to reinvest cash in our business or when we do not have funds readily available for distribution. Thus, compliance with the REIT requirements may hinder our ability to operate solely on the basis of maximizing profits and the value of our stockholders’ investment.
We may be required to make distributions to stockholders at times when it would be more advantageous to reinvest cash in our business or when we do not have funds readily available for distribution.
We may in the future selectively acquire, own and/or develop properties through partnerships, joint ventures or other co-investment entities with third parties when we deem such transactions are warranted by the circumstances.
Joint venture investments could be adversely affected by our lack of sole decision-making authority, our reliance on co-venturers’ financial condition and disputes between us and our co-venturers. We may in the future selectively acquire, own and/or develop properties through partnerships, joint ventures or other co-investment entities with third parties when we deem such transactions are warranted by the circumstances.
Even in the absence of a purchaser default, the reinvestment or distribution of the sales proceeds will be delayed until the promissory notes (or other property we may accept upon a sale) are actually paid, sold or refinanced. 19 Table of Contents Joint venture investments could be adversely affected by our lack of sole decision-making authority, our reliance on co-venturers’ financial condition and disputes between us and our co-venturers.
Even in the absence of a purchaser default, the reinvestment or distribution of the sales proceeds will be delayed until the promissory notes (or other property we may accept upon a sale) are actually paid, sold or refinanced.
Additional risks and uncertainties not presently known to us or that we may currently deem immaterial also may impair our business operations. 10 Table of Contents Risks Related to Our Business and Operations Adverse economic conditions may adversely affect our operating results and financial condition.
Risks Related to Our Business and Operations Adverse economic conditions may adversely affect our operating results and financial condition.
Our hedging strategies may not be successful in mitigating our risks associated with interest rates.
Any decline in available funding or access to our cash and liquidity resources could, among other risks, adversely impact our ability to meet our financial or other obligations or reduce our net income and cash available for distribution to stockholders. Our hedging strategies may not be successful in mitigating our risks associated with interest rates.
Removed
A significant portion of our properties have leases that expire in the next two years and we may be unable to renew leases, lease vacant space or re-lease space on favorable terms.
Added
Beginning in 2021 and continuing into the year ended December 31, 2023, inflation in the United States accelerated and, while moderating compared to year-over-year increases in 2021 and 2022, may continue at a relatively elevated level in the near-term.
Removed
The COVID-19 pandemic or any future public health crisis, pandemic, epidemic or outbreak of infectious disease could have material and adverse effects on our business, operating results, financial condition and cash flows.
Added
Actual events involving limited liquidity, defaults, non-performance or other adverse developments that affect financial institutions, transactional counterparties or other companies in the financial services industry or the financial services industry generally, or concerns or rumors about any events of these kinds or other similar risks, have in the past and may in the future lead to market-wide liquidity problems.
Removed
The number of shares of our common stock available for future sale, and future offerings of debt or equity securities may be dilutive to existing stockholders and adversely affect the market price of our common stock.
Added
For example, on March 10, 2023, Silicon Valley Bank was closed by the California Department of Financial Protection and Innovation, which appointed the FDIC as receiver. Similarly, on March 12, 2023, Signature Bank and Silvergate Capital Corp. were each swept into receivership.
Added
In addition, if any parties with whom we conduct business are unable to access funds pursuant to such instruments or lending arrangements with such a financial institution, such parties’ ability to pay their obligations to us or to enter into new commercial arrangements requiring additional payments to us could be adversely affected.
Added
Although we assess our banking relationships as we believe necessary or 10 Table of Contents appropriate, our access to funding sources and other credit arrangements in amounts adequate to finance or capitalize our current and projected future business operations could be significantly impaired by factors that affect us, the financial services industry or economy in general.
Added
These factors could include, among others, events such as liquidity constraints or failures, the ability to perform obligations under various types of financial, credit or liquidity agreements or arrangements, disruptions or instability in the financial services industry or financial markets, or concerns or negative expectations about the prospects for companies in the financial services industry.
Added
In addition, adverse developments affecting the financial services industry or investor concerns regarding the U.S. or international financial systems could result in less favorable commercial financing terms, including higher interest rates or costs and more restrictive financial and operating covenants, or systemic limitations on access to credit and liquidity sources, thereby making it more difficult for us to acquire financing on acceptable terms or at all.

Item 2. Properties

Properties — owned and leased real estate

12 edited+3 added−1 removed0 unchanged
Biggest changeState City Number of Buildings Asset Type Total Rentable Square Feet Alabama Birmingham 4 Warehouse / Distribution 362,916 Montgomery 1 Warehouse / Distribution 332,000 Moody 1 Warehouse / Distribution 595,346 Phenix City 1 Warehouse / Distribution 117,568 Arkansas Bryant 1 Warehouse / Distribution 300,160 Rogers 1 Warehouse / Distribution 400,000 Arizona Avondale 1 Warehouse / Distribution 186,643 Chandler 1 Light Manufacturing 104,352 Gilbert 1 Warehouse / Distribution 41,504 Mesa 1 Light Manufacturing 71,030 Tucson 1 Warehouse / Distribution 129,047 California Fresno 1 Warehouse / Distribution 232,072 Hollister 1 Warehouse / Distribution 175,325 Lodi 1 Warehouse / Distribution 400,340 McClellan 1 Warehouse / Distribution 160,534 Morgan Hill 2 Light Manufacturing 107,126 Rancho Cordova 2 Warehouse / Distribution 106,718 Roseville 1 Warehouse / Distribution 114,597 Sacramento 6 Warehouse / Distribution 749,709 Sacramento 1 Light Manufacturing 130,000 San Diego 1 Warehouse / Distribution 205,440 Stockton 3 Warehouse / Distribution 263,716 Colorado Grand Junction 1 Warehouse / Distribution 82,800 Johnstown 1 Warehouse / Distribution 132,194 Longmont 1 Light Manufacturing 64,750 Loveland 2 Warehouse / Distribution 195,674 Connecticut Avon 1 Light Manufacturing 78,400 East Windsor 2 Warehouse / Distribution 271,111 Milford 2 Warehouse / Distribution 367,700 North Haven 3 Warehouse / Distribution 824,727 Wallingford 1 Warehouse / Distribution 105,000 Delaware New Castle 1 Warehouse / Distribution 485,987 Florida Daytona Beach 1 Light Manufacturing 142,857 Fort Myers 1 Warehouse / Distribution 260,620 Jacksonville 5 Warehouse / Distribution 1,256,750 Lake Worth 2 Warehouse / Distribution 157,758 Lake Worth 1 Light Manufacturing 42,158 Lakeland 1 Warehouse / Distribution 215,280 Ocala 1 Warehouse / Distribution 619,466 Orlando 1 Warehouse / Distribution 155,000 Orlando 1 Light Manufacturing 215,900 Tampa 1 Warehouse / Distribution 78,560 West Palm Beach 1 Light Manufacturing 112,353 Georgia Atlanta 1 Warehouse / Distribution 159,048 Augusta 1 Warehouse / Distribution 203,726 Buford 1 Warehouse / Distribution 103,720 24 Table of Contents State City Number of Buildings Asset Type Total Rentable Square Feet Calhoun 1 Warehouse / Distribution 151,200 Dallas 1 Warehouse / Distribution 92,807 Forest Park 1 Warehouse / Distribution 373,900 Lithonia 1 Warehouse / Distribution 210,858 Norcross 1 Warehouse / Distribution 152,036 Savannah 1 Warehouse / Distribution 504,300 Shannon 1 Warehouse / Distribution 568,516 Smyrna 1 Warehouse / Distribution 102,000 Statham 1 Warehouse / Distribution 225,692 Stone Mountain 1 Warehouse / Distribution 78,000 Iowa Ankeny 2 Warehouse / Distribution 400,968 Council Bluffs 1 Warehouse / Distribution 90,000 Des Moines 2 Warehouse / Distribution 301,381 Marion 1 Warehouse / Distribution 95,500 Idaho Idaho Falls 1 Warehouse / Distribution 78,690 Illinois Bartlett 1 Warehouse / Distribution 207,575 Batavia 2 Warehouse / Distribution 204,642 Batavia 1 Light Manufacturing 56,676 Belvidere 7 Warehouse / Distribution 1,169,222 Cary 1 Warehouse / Distribution 79,049 Crystal Lake 4 Warehouse / Distribution 506,096 DeKalb 1 Warehouse / Distribution 146,740 Elgin 2 Warehouse / Distribution 383,856 Elgin 1 Light Manufacturing 41,007 Elmhurst 1 Warehouse / Distribution 72,499 Gurnee 1 Warehouse / Distribution 338,740 Harvard 1 Light Manufacturing 126,304 Hodgkins 2 Warehouse / Distribution 518,109 Itasca 3 Warehouse / Distribution 311,355 Lisle 1 Light Manufacturing 105,925 Machesney Park 1 Warehouse / Distribution 80,000 McHenry 2 Warehouse / Distribution 169,311 Montgomery 1 Warehouse / Distribution 584,301 Saint Charles 2 Light Manufacturing 217,491 Sauk Village 1 Warehouse / Distribution 375,785 Schaumburg 1 Warehouse / Distribution 67,817 Vernon Hills 1 Warehouse / Distribution 95,486 Waukegan 1 Warehouse / Distribution 131,252 West Chicago 1 Warehouse / Distribution 249,470 West Chicago 5 Light Manufacturing 305,874 West Dundee 1 Warehouse / Distribution 154,475 Wood Dale 1 Light Manufacturing 137,607 Woodstock 1 Light Manufacturing 129,803 Indiana Albion 2 Light Manufacturing 96,778 Elkhart 2 Warehouse / Distribution 170,100 Fort Wayne 1 Warehouse / Distribution 108,800 Goshen 1 Warehouse / Distribution 366,000 Greenwood 1 Warehouse / Distribution 154,440 Indianapolis 1 Warehouse / Distribution 78,600 Jeffersonville 1 Warehouse / Distribution 563,032 Lafayette 3 Warehouse / Distribution 466,400 Lebanon 3 Warehouse / Distribution 2,230,323 Marion 1 Warehouse / Distribution 249,920 Portage 2 Warehouse / Distribution 786,249 South Bend 1 Warehouse / Distribution 225,000 Yoder 1 Warehouse / Distribution 764,177 25 Table of Contents State City Number of Buildings Asset Type Total Rentable Square Feet Kansas Edwardsville 1 Warehouse / Distribution 270,869 Lenexa 3 Warehouse / Distribution 581,059 Olathe 2 Warehouse / Distribution 725,839 Wichita 3 Warehouse / Distribution 248,550 Kentucky Bardstown 1 Warehouse / Distribution 102,318 Danville 1 Warehouse / Distribution 757,047 Erlanger 1 Warehouse / Distribution 108,620 Florence 2 Warehouse / Distribution 641,136 Hebron 1 Warehouse / Distribution 109,000 Louisville 2 Warehouse / Distribution 499,217 Louisiana Baton Rouge 3 Warehouse / Distribution 532,036 Shreveport 1 Warehouse / Distribution 420,259 Massachusetts Chicopee 1 Warehouse / Distribution 217,000 Hudson 1 Light Manufacturing 128,000 Malden 2 Light Manufacturing 109,943 Middleborough 1 Light Manufacturing 80,100 Norton 1 Warehouse / Distribution 200,000 South Easton 1 Light Manufacturing 86,000 Sterling 1 Warehouse / Distribution 119,056 Stoughton 2 Warehouse / Distribution 258,213 Westborough 1 Warehouse / Distribution 121,700 Maryland Elkridge 1 Warehouse / Distribution 167,223 Hagerstown 3 Warehouse / Distribution 1,424,620 Hampstead 1 Warehouse / Distribution 1,035,249 Hunt Valley 1 Warehouse / Distribution 46,851 White Marsh 1 Warehouse / Distribution 103,564 Maine Biddeford 2 Warehouse / Distribution 265,126 Gardiner 1 Warehouse / Distribution 265,000 Lewiston 1 Flex Office 60,000 Portland 1 Warehouse / Distribution 100,600 Michigan Belleville 1 Light Manufacturing 160,464 Canton 1 Warehouse / Distribution 491,049 Chesterfield 4 Warehouse / Distribution 478,803 Grand Rapids 4 Warehouse / Distribution 656,262 Holland 1 Warehouse / Distribution 195,000 Kentwood 2 Warehouse / Distribution 370,020 Kentwood 1 Light Manufacturing 85,157 Lansing 4 Warehouse / Distribution 770,425 Livonia 2 Warehouse / Distribution 285,306 Marshall 1 Light Manufacturing 57,025 Novi 3 Warehouse / Distribution 685,010 Plymouth 1 Warehouse / Distribution 125,214 Redford 1 Warehouse / Distribution 138,912 Romulus 1 Warehouse / Distribution 303,760 Romulus 1 Light Manufacturing 274,500 Sterling Heights 1 Warehouse / Distribution 108,000 Walker 1 Warehouse / Distribution 210,000 Warren 4 Warehouse / Distribution 981,540 Wixom 1 Warehouse / Distribution 126,720 Zeeland 1 Warehouse / Distribution 230,200 Minnesota Blaine 1 Warehouse / Distribution 248,816 Bloomington 1 Light Manufacturing 145,351 Brooklyn Park 1 Warehouse / Distribution 200,720 Carlos 1 Light Manufacturing 196,270 26 Table of Contents State City Number of Buildings Asset Type Total Rentable Square Feet Eagan 1 Warehouse / Distribution 276,550 Inver Grove Heigh 1 Warehouse / Distribution 80,655 Maple Grove 2 Warehouse / Distribution 207,875 Mendota Heights 1 Warehouse / Distribution 87,183 New Hope 1 Light Manufacturing 107,348 Newport 1 Warehouse / Distribution 83,000 Oakdale 2 Warehouse / Distribution 210,044 Plymouth 3 Warehouse / Distribution 357,085 Savage 1 Warehouse / Distribution 244,050 Shakopee 1 Warehouse / Distribution 160,000 Shakopee 1 Light Manufacturing 136,589 South Saint Paul 1 Warehouse / Distribution 422,727 St.
Biggest changeState City Number of Buildings Asset Type Total Rentable Square Feet Alabama Birmingham 4 Warehouse / Distribution 362,916 Montgomery 1 Warehouse / Distribution 332,000 Moody 1 Warehouse / Distribution 595,346 Phenix City 1 Warehouse / Distribution 117,568 Arkansas Bryant 1 Warehouse / Distribution 300,160 Rogers 1 Warehouse / Distribution 400,000 Arizona Avondale 1 Warehouse / Distribution 186,643 Chandler 1 Light Manufacturing 104,352 Gilbert 1 Warehouse / Distribution 41,504 Mesa 1 Light Manufacturing 71,030 Tucson 1 Warehouse / Distribution 129,047 California Fresno 1 Warehouse / Distribution 232,072 Hollister 1 Warehouse / Distribution 175,325 Lodi 1 Warehouse / Distribution 400,340 McClellan 1 Warehouse / Distribution 160,534 Menifee 2 Warehouse/ Distribution 157,146 Morgan Hill 2 Light Manufacturing 107,126 Rancho Cordova 2 Warehouse / Distribution 106,718 Roseville 1 Warehouse / Distribution 114,597 Sacramento 7 Warehouse / Distribution 846,519 Sacramento 1 Light Manufacturing 130,000 San Diego 1 Warehouse / Distribution 205,440 Stockton 3 Warehouse / Distribution 263,716 West Sacramento 1 Warehouse / Distribution 236,716 Colorado Grand Junction 1 Warehouse / Distribution 82,800 Johnstown 1 Warehouse / Distribution 132,194 Longmont 1 Light Manufacturing 64,750 Loveland 2 Warehouse / Distribution 195,674 Connecticut East Windsor 2 Warehouse / Distribution 271,111 Milford 2 Warehouse / Distribution 367,700 North Haven 3 Warehouse / Distribution 824,727 Wallingford 1 Warehouse / Distribution 105,000 Delaware New Castle 1 Warehouse / Distribution 485,987 Florida Daytona Beach 1 Light Manufacturing 142,857 Fort Myers 1 Warehouse / Distribution 260,620 Jacksonville 5 Warehouse / Distribution 1,256,750 Lake Worth 2 Warehouse / Distribution 157,758 Lake Worth 1 Light Manufacturing 42,158 Lakeland 1 Warehouse / Distribution 215,280 Orlando 1 Warehouse / Distribution 155,000 Orlando 1 Light Manufacturing 215,900 Tampa 1 Warehouse / Distribution 78,560 West Palm Beach 1 Light Manufacturing 112,353 Georgia Atlanta 1 Warehouse / Distribution 175,532 Augusta 1 Warehouse / Distribution 203,726 Buford 1 Warehouse / Distribution 103,720 Calhoun 1 Warehouse / Distribution 151,200 Dallas 1 Warehouse / Distribution 92,807 Forest Park 1 Warehouse / Distribution 373,900 Lithonia 1 Warehouse / Distribution 210,858 25 Table of Contents State City Number of Buildings Asset Type Total Rentable Square Feet Norcross 1 Warehouse / Distribution 152,036 Savannah 1 Warehouse / Distribution 504,300 Shannon 1 Warehouse / Distribution 568,516 Smyrna 1 Warehouse / Distribution 102,000 Statham 1 Warehouse / Distribution 225,692 Stone Mountain 1 Warehouse / Distribution 78,000 Iowa Ankeny 2 Warehouse / Distribution 400,968 Council Bluffs 1 Warehouse / Distribution 90,000 Des Moines 2 Warehouse / Distribution 301,381 Marion 1 Warehouse / Distribution 95,500 Idaho Idaho Falls 1 Warehouse / Distribution 78,690 Illinois Bartlett 1 Warehouse / Distribution 207,575 Batavia 2 Warehouse / Distribution 204,642 Batavia 1 Light Manufacturing 56,676 Belvidere 6 Warehouse / Distribution 1,069,222 Cary 1 Warehouse / Distribution 79,049 Crystal Lake 4 Warehouse / Distribution 506,096 Elgin 2 Warehouse / Distribution 383,856 Elgin 1 Light Manufacturing 41,007 Elmhurst 1 Warehouse / Distribution 72,499 Gurnee 1 Warehouse / Distribution 338,740 Harvard 1 Light Manufacturing 126,304 Hodgkins 2 Warehouse / Distribution 518,109 Itasca 3 Warehouse / Distribution 311,355 Lisle 1 Light Manufacturing 105,925 Machesney Park 1 Warehouse / Distribution 80,000 McHenry 2 Warehouse / Distribution 169,311 Montgomery 1 Warehouse / Distribution 584,301 Saint Charles 1 Light Manufacturing 102,000 Sauk Village 1 Warehouse / Distribution 375,785 Schaumburg 1 Warehouse / Distribution 67,817 St.
Paul 1 Warehouse / Distribution 316,636 Missouri Berkeley 1 Warehouse / Distribution 121,223 Earth City 1 Warehouse / Distribution 116,783 Fenton 1 Warehouse / Distribution 127,464 Hazelwood 1 Warehouse / Distribution 305,550 Kansas City 1 Warehouse / Distribution 702,000 O’Fallon 2 Warehouse / Distribution 186,854 Mississippi Southaven 1 Warehouse / Distribution 556,600 North Carolina Catawba 1 Warehouse / Distribution 137,785 Charlotte 3 Warehouse / Distribution 243,880 Durham 1 Warehouse / Distribution 80,600 Garner 1 Warehouse / Distribution 150,000 Greensboro 1 Warehouse / Distribution 128,287 Huntersville 1 Warehouse / Distribution 185,570 Lexington 1 Warehouse / Distribution 201,800 Mebane 2 Warehouse / Distribution 606,840 Mebane 1 Light Manufacturing 202,691 Mocksville 1 Warehouse / Distribution 129,600 Mooresville 2 Warehouse / Distribution 799,200 Mountain Home 1 Warehouse / Distribution 146,014 Newton 1 Warehouse / Distribution 217,200 Pineville 1 Light Manufacturing 75,400 Rural Hall 1 Warehouse / Distribution 250,000 Salisbury 1 Warehouse / Distribution 288,000 Smithfield 1 Warehouse / Distribution 307,845 Troutman 1 Warehouse / Distribution 301,000 Winston-Salem 1 Warehouse / Distribution 385,000 Youngsville 1 Warehouse / Distribution 365,000 Nebraska Bellevue 1 Warehouse / Distribution 370,000 La Vista 1 Warehouse / Distribution 178,368 Omaha 5 Warehouse / Distribution 465,468 New Hampshire Londonderry 1 Warehouse / Distribution 125,060 Nashua 1 Warehouse / Distribution 337,391 New Jersey Branchburg 1 Warehouse / Distribution 113,973 Burlington 2 Warehouse / Distribution 756,990 Franklin Township 1 Warehouse / Distribution 183,000 Lumberton 1 Light Manufacturing 120,000 Moorestown 2 Warehouse / Distribution 187,569 Mt.
Paul 1 Warehouse / Distribution 316,636 Missouri Berkeley 1 Warehouse / Distribution 121,223 Earth City 1 Warehouse / Distribution 116,783 Fenton 1 Warehouse / Distribution 127,464 Hazelwood 1 Warehouse / Distribution 305,550 Kansas City 1 Warehouse / Distribution 702,000 O’Fallon 2 Warehouse / Distribution 186,854 Mississippi Southaven 1 Warehouse / Distribution 556,600 North Carolina Catawba 1 Warehouse / Distribution 137,785 Charlotte 3 Warehouse / Distribution 243,880 Durham 1 Warehouse / Distribution 80,600 Garner 1 Warehouse / Distribution 150,000 Greensboro 2 Warehouse / Distribution 261,909 Huntersville 1 Warehouse / Distribution 185,570 Lexington 1 Warehouse / Distribution 201,800 Mebane 2 Warehouse / Distribution 606,840 Mebane 1 Light Manufacturing 202,691 Mocksville 1 Warehouse / Distribution 129,600 Mooresville 2 Warehouse / Distribution 799,200 Mountain Home 1 Warehouse / Distribution 146,014 Newton 1 Warehouse / Distribution 217,200 Pineville 1 Light Manufacturing 75,400 Rural Hall 1 Warehouse / Distribution 250,000 Salisbury 1 Warehouse / Distribution 288,000 Smithfield 1 Warehouse / Distribution 307,845 Troutman 1 Warehouse / Distribution 301,000 Winston-Salem 1 Warehouse / Distribution 385,000 Youngsville 1 Warehouse / Distribution 365,000 Nebraska Bellevue 1 Warehouse / Distribution 370,000 La Vista 1 Warehouse / Distribution 178,368 Omaha 5 Warehouse / Distribution 464,558 New Hampshire Londonderry 1 Warehouse / Distribution 125,060 Nashua 1 Warehouse / Distribution 337,391 New Jersey Branchburg 1 Warehouse / Distribution 113,973 Burlington 2 Warehouse / Distribution 756,990 Franklin Township 1 Warehouse / Distribution 183,000 Lumberton 1 Light Manufacturing 120,000 Moorestown 2 Warehouse / Distribution 187,569 Mt.
See Note 4 in the accompanying Notes to the Consolidated Financial Statements and the accompanying Schedule III for additional information. 30 Table of Contents Top Markets The following table summarizes information about the 20 largest markets in our portfolio based on total annualized base rental revenue as of December 31, 2022.
See Note 4 in the accompanying Notes to the Consolidated Financial Statements and the accompanying Schedule III for additional information. 31 Table of Contents Top Markets The following table summarizes information about the 20 largest markets in our portfolio based on total annualized base rental revenue as of December 31, 2023.
Top Industries The following table summarizes information about the 20 largest tenant industries in our portfolio based on total annualized base rental revenue as of December 31, 2022.
Top Industries The following table summarizes information about the 20 largest tenant industries in our portfolio based on total annualized base rental revenue as of December 31, 2023.
Chesterfield 1 Warehouse / Distribution 109,520 Norfolk 1 Warehouse / Distribution 102,512 Richmond 1 Light Manufacturing 78,128 Washington Ridgefield 1 Warehouse / Distribution 141,400 Wisconsin Appleton 1 Warehouse / Distribution 152,000 Caledonia 1 Light Manufacturing 53,680 Cudahy 1 Warehouse / Distribution 128,000 De Pere 1 Warehouse / Distribution 200,000 DeForest 1 Warehouse / Distribution 262,521 Delavan 2 Light Manufacturing 146,400 East Troy 1 Warehouse / Distribution 149,624 Elkhorn 1 Warehouse / Distribution 111,000 Elkhorn 1 Light Manufacturing 78,540 Franklin 1 Warehouse / Distribution 156,482 Germantown 4 Warehouse / Distribution 520,163 Hartland 1 Warehouse / Distribution 121,050 Hudson 1 Warehouse / Distribution 139,875 Janesville 1 Warehouse / Distribution 700,000 Kenosha 1 Light Manufacturing 175,052 Madison 2 Warehouse / Distribution 283,000 Mayville 1 Light Manufacturing 339,179 Mukwonago 1 Warehouse / Distribution 157,438 Muskego 1 Warehouse / Distribution 81,230 New Berlin 3 Warehouse / Distribution 590,663 Oak Creek 2 Warehouse / Distribution 232,144 Pewaukee 2 Warehouse / Distribution 288,201 Pleasant Prairie 1 Warehouse / Distribution 291,599 Pleasant Prairie 1 Light Manufacturing 105,637 Sun Prairie 1 Warehouse / Distribution 427,000 West Allis 4 Warehouse / Distribution 243,478 Yorkville 1 Warehouse / Distribution 98,151 Total 562 111,723,436 Not reflected in the table above are three buildings under development.
Chesterfield 1 Warehouse / Distribution 109,520 Norfolk 1 Warehouse / Distribution 102,512 Richmond 1 Light Manufacturing 78,128 Washington Ridgefield 1 Warehouse / Distribution 141,400 Wisconsin Appleton 1 Warehouse / Distribution 152,000 Caledonia 1 Light Manufacturing 53,680 Cudahy 1 Warehouse / Distribution 128,000 De Pere 1 Warehouse / Distribution 200,000 DeForest 1 Warehouse / Distribution 262,521 Delavan 2 Light Manufacturing 146,400 East Troy 1 Warehouse / Distribution 149,624 Elkhorn 1 Warehouse / Distribution 111,000 Elkhorn 1 Light Manufacturing 78,540 Franklin 1 Warehouse / Distribution 156,482 Germantown 4 Warehouse / Distribution 520,163 Hartland 1 Warehouse / Distribution 121,050 Hudson 1 Warehouse / Distribution 139,875 Janesville 1 Warehouse / Distribution 700,000 Kenosha 1 Light Manufacturing 175,052 Madison 2 Warehouse / Distribution 283,000 Mayville 1 Light Manufacturing 339,179 Mukwonago 1 Warehouse / Distribution 157,438 Muskego 1 Warehouse / Distribution 81,230 New Berlin 3 Warehouse / Distribution 590,663 Oak Creek 2 Warehouse / Distribution 232,144 Pewaukee 2 Warehouse / Distribution 288,201 Pleasant Prairie 1 Warehouse / Distribution 291,599 Pleasant Prairie 1 Light Manufacturing 105,637 Sun Prairie 1 Warehouse / Distribution 427,000 West Allis 4 Warehouse / Distribution 243,478 Yorkville 1 Warehouse / Distribution 98,151 Total 569 112,271,592 Not reflected in the table above are six buildings under development.
Scheduled Lease Expirations As of December 31, 2022, our Weighted Average Lease Term was approximately 4.7 years. The following table summarizes lease expirations for leases in place as of December 31, 2022, plus available space, for each of the ten calendar years beginning with 2023 and thereafter in our portfolio.
Scheduled Lease Expirations As of December 31, 2023, our Weighted Average Lease Term was approximately 4.5 years. The following table summarizes lease expirations for leases in place as of December 31, 2023, plus available space, for each of the ten calendar years beginning with 2024 and thereafter in our portfolio.
Laurel 1 Warehouse / Distribution 112,294 Pedricktown 1 Warehouse / Distribution 245,749 Swedesboro 1 Warehouse / Distribution 123,962 Westampton 1 Warehouse / Distribution 128,959 27 Table of Contents State City Number of Buildings Asset Type Total Rentable Square Feet New Mexico Santa Teresa 1 Warehouse / Distribution 92,325 Nevada Fernley 1 Light Manufacturing 183,435 Las Vegas 1 Warehouse / Distribution 34,916 Las Vegas 1 Light Manufacturing 122,472 Paradise 2 Light Manufacturing 80,422 Reno 1 Light Manufacturing 87,264 Sparks 1 Warehouse / Distribution 161,986 New York Buffalo 1 Warehouse / Distribution 117,000 Cheektowaga 1 Warehouse / Distribution 121,760 Farmington 1 Warehouse / Distribution 149,657 Gloversville 3 Warehouse / Distribution 211,554 Johnstown 2 Warehouse / Distribution 117,102 Johnstown 1 Light Manufacturing 42,325 Rochester 2 Warehouse / Distribution 252,860 Ronkonkoma 1 Warehouse / Distribution 64,224 Ohio Bedford Heights 1 Warehouse / Distribution 173,034 Boardman 1 Warehouse / Distribution 176,930 Canal Winchester 2 Warehouse / Distribution 814,265 Columbus 4 Warehouse / Distribution 1,486,450 Dayton 1 Warehouse / Distribution 205,761 Etna 1 Warehouse / Distribution 1,232,149 Fairborn 1 Warehouse / Distribution 259,369 Fairfield 2 Warehouse / Distribution 364,948 Gahanna 1 Warehouse / Distribution 383,000 Groveport 1 Warehouse / Distribution 320,657 Hilliard 1 Warehouse / Distribution 237,500 Macedonia 2 Warehouse / Distribution 338,297 Maple Heights 1 Warehouse / Distribution 170,000 Mason 1 Light Manufacturing 116,200 North Jackson 2 Warehouse / Distribution 517,150 Oakwood Village 1 Warehouse / Distribution 75,000 Salem 1 Light Manufacturing 271,000 Seville 1 Warehouse / Distribution 75,000 Streetsboro 1 Warehouse / Distribution 343,416 Strongsville 2 Warehouse / Distribution 341,561 Toledo 1 Warehouse / Distribution 177,500 Twinsburg 2 Warehouse / Distribution 426,974 West Chester 1 Warehouse / Distribution 269,868 West Jefferson 1 Warehouse / Distribution 857,390 Oklahoma Oklahoma City 2 Warehouse / Distribution 303,740 Tulsa 2 Warehouse / Distribution 309,600 Oregon Salem 2 Light Manufacturing 155,900 Wilsonville 1 Warehouse / Distribution 78,000 Pennsylvania Allentown 1 Warehouse / Distribution 292,092 Burgettstown 1 Warehouse / Distribution 455,000 Charleroi 1 Warehouse / Distribution 119,161 Clinton 7 Warehouse / Distribution 1,531,972 Croydon 1 Warehouse / Distribution 101,869 Elizabethtown 1 Warehouse / Distribution 206,236 Export 1 Warehouse / Distribution 138,270 Hazleton 1 Warehouse / Distribution 589,580 Imperial 1 Warehouse / Distribution 315,634 Lancaster 1 Warehouse / Distribution 240,528 Langhorne 2 Warehouse / Distribution 180,000 Langhorne 2 Light Manufacturing 287,647 28 Table of Contents State City Number of Buildings Asset Type Total Rentable Square Feet Lebanon 1 Warehouse / Distribution 211,358 Mechanicsburg 3 Warehouse / Distribution 747,054 Muhlenberg Township 1 Warehouse / Distribution 392,107 New Galilee 1 Warehouse / Distribution 410,389 New Kensington 1 Warehouse / Distribution 200,500 New Kingstown 1 Warehouse / Distribution 330,000 O’Hara Township 1 Warehouse / Distribution 887,084 Pittston 1 Warehouse / Distribution 437,446 Reading 1 Warehouse / Distribution 248,000 Warrendale 1 Warehouse / Distribution 179,394 York 5 Warehouse / Distribution 1,306,834 South Carolina Columbia 1 Light Manufacturing 185,600 Duncan 3 Warehouse / Distribution 996,841 Edgefield 1 Light Manufacturing 126,190 Fountain Inn 2 Warehouse / Distribution 442,472 Fountain Inn 1 Light Manufacturing 203,888 Gaffney 1 Warehouse / Distribution 226,968 Goose Creek 1 Warehouse / Distribution 500,355 Greenwood 2 Light Manufacturing 175,055 Greer 7 Warehouse / Distribution 877,645 Laurens 1 Warehouse / Distribution 125,000 Piedmont 7 Warehouse / Distribution 1,387,556 Rock Hill 3 Warehouse / Distribution 720,120 Simpsonville 3 Warehouse / Distribution 1,138,494 Spartanburg 9 Warehouse / Distribution 1,802,623 Summerville 1 Warehouse / Distribution 88,583 West Columbia 6 Warehouse / Distribution 1,163,822 West Columbia 1 Light Manufacturing 464,206 Tennessee Chattanooga 3 Warehouse / Distribution 646,200 Cleveland 1 Warehouse / Distribution 151,704 Clinton 1 Warehouse / Distribution 166,000 Jackson 1 Warehouse / Distribution 216,902 Knoxville 2 Warehouse / Distribution 335,550 Knoxville 1 Light Manufacturing 106,000 Lebanon 2 Warehouse / Distribution 407,552 Loudon 1 Warehouse / Distribution 104,074 Madison 1 Warehouse / Distribution 418,406 Mascot 1 Warehouse / Distribution 130,560 Mascot 1 Light Manufacturing 130,560 Memphis 2 Warehouse / Distribution 1,331,075 Murfreesboro 2 Warehouse / Distribution 212,312 Nashville 1 Warehouse / Distribution 154,485 Vonore 1 Warehouse / Distribution 342,700 Texas Arlington 2 Warehouse / Distribution 290,324 Cedar Hill 1 Warehouse / Distribution 420,000 Conroe 1 Warehouse / Distribution 252,662 El Paso 12 Warehouse / Distribution 2,413,234 Garland 1 Light Manufacturing 253,900 Grapevine 2 Warehouse / Distribution 202,140 Houston 8 Warehouse / Distribution 999,124 Houston 3 Light Manufacturing 597,935 Humble 1 Warehouse / Distribution 289,200 Katy 2 Warehouse / Distribution 244,903 Laredo 2 Warehouse / Distribution 462,658 McAllen 1 Warehouse / Distribution 301,200 Mission 1 Warehouse / Distribution 270,084 Rockwall 1 Warehouse / Distribution 389,546 Stafford 1 Warehouse / Distribution 68,300 29 Table of Contents State City Number of Buildings Asset Type Total Rentable Square Feet Waco 1 Warehouse / Distribution 66,400 Utah Provo 1 Warehouse / Distribution 177,071 Virginia Chester 1 Warehouse / Distribution 100,000 Fredericksburg 1 Warehouse / Distribution 140,555 Harrisonburg 1 Warehouse / Distribution 357,673 Independence 1 Warehouse / Distribution 120,000 N.
Laurel 1 Warehouse / Distribution 112,294 Pedricktown 1 Warehouse / Distribution 247,220 Piscataway 1 Warehouse / Distribution 101,381 Swedesboro 1 Warehouse / Distribution 123,962 Westampton 1 Warehouse / Distribution 189,434 New Mexico Santa Teresa 1 Warehouse / Distribution 92,325 Nevada Fernley 1 Light Manufacturing 183,435 Las Vegas 1 Warehouse / Distribution 34,916 28 Table of Contents State City Number of Buildings Asset Type Total Rentable Square Feet Las Vegas 1 Light Manufacturing 122,472 Paradise 2 Light Manufacturing 80,422 Reno 1 Light Manufacturing 87,264 Sparks 2 Warehouse / Distribution 326,986 New York Buffalo 1 Warehouse / Distribution 117,000 Cheektowaga 1 Warehouse / Distribution 121,760 Farmington 1 Warehouse / Distribution 149,657 Gloversville 3 Warehouse / Distribution 211,554 Johnstown 2 Warehouse / Distribution 117,102 Johnstown 1 Light Manufacturing 42,325 Rochester 2 Warehouse / Distribution 252,860 Ronkonkoma 1 Warehouse / Distribution 64,224 Ohio Bedford Heights 1 Warehouse / Distribution 173,034 Boardman 1 Warehouse / Distribution 176,930 Canal Winchester 2 Warehouse / Distribution 814,265 Columbus 4 Warehouse / Distribution 1,486,450 Dayton 1 Warehouse / Distribution 205,761 Etna 1 Warehouse / Distribution 1,232,149 Fairborn 1 Warehouse / Distribution 259,369 Fairfield 2 Warehouse / Distribution 364,948 Gahanna 1 Warehouse / Distribution 383,000 Groveport 1 Warehouse / Distribution 320,657 Hilliard 1 Warehouse / Distribution 237,500 Macedonia 2 Warehouse / Distribution 338,297 Maple Heights 1 Warehouse / Distribution 170,000 Mason 1 Light Manufacturing 116,200 North Jackson 2 Warehouse / Distribution 518,758 Oakwood Village 1 Warehouse / Distribution 75,000 Salem 1 Light Manufacturing 271,000 Seville 1 Warehouse / Distribution 75,000 Streetsboro 1 Warehouse / Distribution 343,416 Strongsville 2 Warehouse / Distribution 341,561 Toledo 1 Warehouse / Distribution 177,500 Twinsburg 2 Warehouse / Distribution 426,974 West Chester 1 Warehouse / Distribution 269,868 West Jefferson 1 Warehouse / Distribution 857,390 Oklahoma Oklahoma City 2 Warehouse / Distribution 303,740 Tulsa 2 Warehouse / Distribution 309,600 Oregon Beaverton 2 Warehouse / Distribution 121,426 Salem 2 Light Manufacturing 155,900 Wilsonville 1 Warehouse / Distribution 78,000 Pennsylvania Allentown 4 Warehouse / Distribution 514,134 Burgettstown 1 Warehouse / Distribution 455,000 Charleroi 1 Warehouse / Distribution 119,161 Clinton 7 Warehouse / Distribution 1,531,972 Croydon 1 Warehouse / Distribution 101,869 Elizabethtown 1 Warehouse / Distribution 206,236 Export 1 Warehouse / Distribution 138,270 Hazleton 1 Warehouse / Distribution 589,580 Imperial 1 Warehouse / Distribution 315,634 Kulpsville 1 Warehouse / Distribution 152,625 Lancaster 1 Warehouse / Distribution 240,528 Langhorne 2 Warehouse / Distribution 180,000 Langhorne 2 Light Manufacturing 287,647 Lebanon 1 Warehouse / Distribution 211,358 Mechanicsburg 3 Warehouse / Distribution 747,054 29 Table of Contents State City Number of Buildings Asset Type Total Rentable Square Feet Muhlenberg Township 1 Warehouse / Distribution 392,107 New Galilee 1 Warehouse / Distribution 410,389 New Kensington 1 Warehouse / Distribution 200,500 New Kingstown 1 Warehouse / Distribution 330,000 O’Hara Township 1 Warehouse / Distribution 887,084 Pittston 1 Warehouse / Distribution 437,446 Reading 1 Warehouse / Distribution 248,000 Warrendale 1 Warehouse / Distribution 179,394 York 5 Warehouse / Distribution 1,306,834 South Carolina Columbia 1 Light Manufacturing 185,600 Duncan 3 Warehouse / Distribution 996,841 Edgefield 1 Light Manufacturing 126,190 Fountain Inn 2 Warehouse / Distribution 442,472 Fountain Inn 1 Light Manufacturing 203,888 Gaffney 1 Warehouse / Distribution 226,968 Goose Creek 1 Warehouse / Distribution 500,355 Greenwood 2 Light Manufacturing 175,055 Greer 6 Warehouse / Distribution 654,935 Laurens 1 Warehouse / Distribution 125,000 Piedmont 7 Warehouse / Distribution 1,387,556 Rock Hill 3 Warehouse / Distribution 720,120 Simpsonville 3 Warehouse / Distribution 1,138,494 Spartanburg 9 Warehouse / Distribution 1,802,623 Summerville 1 Warehouse / Distribution 88,583 Wellford 1 Warehouse / Distribution 233,433 West Columbia 6 Warehouse / Distribution 1,163,822 West Columbia 1 Light Manufacturing 464,206 Tennessee Chattanooga 3 Warehouse / Distribution 646,200 Cleveland 1 Warehouse / Distribution 151,704 Clinton 1 Warehouse / Distribution 166,000 Jackson 1 Warehouse / Distribution 267,391 Knoxville 2 Warehouse / Distribution 335,310 Knoxville 1 Light Manufacturing 106,000 Lebanon 2 Warehouse / Distribution 407,552 Loudon 1 Warehouse / Distribution 104,074 Madison 1 Warehouse / Distribution 418,406 Mascot 1 Warehouse / Distribution 130,560 Mascot 1 Light Manufacturing 190,560 Memphis 2 Warehouse / Distribution 1,331,075 Murfreesboro 2 Warehouse / Distribution 212,312 Nashville 1 Warehouse / Distribution 154,485 Vonore 1 Warehouse / Distribution 342,700 Texas Arlington 2 Warehouse / Distribution 290,324 Cedar Hill 1 Warehouse / Distribution 420,000 Conroe 1 Warehouse / Distribution 252,662 El Paso 12 Warehouse / Distribution 2,413,344 Garland 1 Light Manufacturing 253,900 Grapevine 2 Warehouse / Distribution 202,140 Houston 8 Warehouse / Distribution 999,124 Houston 2 Light Manufacturing 412,935 Humble 1 Warehouse / Distribution 289,200 Irving 1 Warehouse / Distribution 120,900 Katy 2 Warehouse / Distribution 244,903 Laredo 2 Warehouse / Distribution 462,658 McAllen 1 Warehouse / Distribution 301,200 Mission 1 Warehouse / Distribution 270,084 Rockwall 1 Warehouse / Distribution 389,546 Stafford 1 Warehouse / Distribution 68,300 30 Table of Contents State City Number of Buildings Asset Type Total Rentable Square Feet Waco 1 Warehouse / Distribution 66,400 Utah Provo 1 Warehouse / Distribution 177,071 Virginia Chester 1 Warehouse / Distribution 100,000 Fredericksburg 1 Warehouse / Distribution 140,555 Harrisonburg 1 Warehouse / Distribution 357,673 Independence 1 Warehouse / Distribution 120,000 N.
Top 20 Tenants (1) Number of Leases % of Total Annualized Base Rental Revenue Amazon 7 3.0 % Eastern Metal Supply, Inc. 5 0.9 % American Tire Distributors, Inc. 7 0.9 % Tempur Sealy International, Inc. 2 0.8 % Hachette Book Group, Inc. 1 0.8 % Lippert Component Manufacturing 5 0.8 % Kenco Logistic Services, LLC 3 0.8 % FedEx Corporation 3 0.8 % Penguin Random House, LLC 1 0.7 % WestRock Company 7 0.7 % DS Smith North America 2 0.7 % GXO Logistics, Inc. 2 0.7 % Yanfeng US Automotive Interior 2 0.7 % DHL Supply Chain 4 0.7 % AFL Telecommunications LLC 2 0.7 % Carolina Beverage Group 3 0.7 % LKQ Corporation 4 0.7 % Berlin Packaging L.L.C. 4 0.6 % Iron Mountain Information Management 5 0.6 % Ford Motor Company 1 0.6 % Total 70 16.9 % (1) Includes tenants, guarantors, and/or non-guarantor parents.
Top 20 Tenants (1) Number of Leases % of Total Annualized Base Rental Revenue Amazon 6 2.9 % Soho Studio, LLC 1 0.9 % American Tire Distributors, Inc. 7 0.9 % Eastern Metal Supply, Inc. 5 0.9 % Tempur Sealy International, Inc. 2 0.8 % Hachette Book Group, Inc. 1 0.8 % Kenco Logistic Services, LLC 3 0.7 % Yanfeng US Automotive Interior 2 0.7 % WestRock Company 7 0.7 % Penguin Random House, LLC 1 0.7 % FedEx Corporation 3 0.7 % Lippert Component Manufacturing 4 0.7 % DS Smith North America 2 0.7 % GXO Logistics, Inc. 2 0.7 % AFL Telecommunications LLC 2 0.6 % DHL Supply Chain 4 0.6 % Carolina Beverage Group 3 0.6 % Iron Mountain Information Management 5 0.6 % Packaging Corp of America 5 0.6 % Berlin Packaging LLC 4 0.6 % Total 69 16.4 % (1) Includes tenants, guarantors, and/or non-guarantor parents.
Item 2. Properties As of December 31, 2022, we owned the properties in the following table.
Item 2. Properties As of December 31, 2023, we owned the properties in the following table.
Top 20 Tenant Industries (1) % of Total Annualized Base Rental Revenue Air Freight & Logistics 10.9 % Containers & Packaging 8.2 % Auto Components 7.3 % Commercial Services & Supplies 5.4 % Machinery 5.3 % Trading Companies & Distribution (Industrial Goods) 5.2 % Internet & Direct Market Retail 4.8 % Household Durables 4.4 % Distributors (Consumer Goods) 4.3 % Food & Staples Retailing 3.4 % Media 3.3 % Building Products 3.1 % Specialty Retail 2.8 % Food Products 2.3 % Chemicals 2.2 % Electronic Equip, Instruments 2.2 % Road & Rail 2.1 % Beverages 2.0 % Textiles, Apparel, Luxury Goods 1.9 % Health Care Equipment & Supplies 1.8 % Total 82.9 % (1) Industry classification based on Global Industry Classification Standard methodology. 31 Table of Contents Top Tenants The following table summarizes information about the 20 largest tenants in our portfolio based on total annualized base rental revenue as of December 31, 2022.
Top 20 Tenant Industries (1) % of Total Annualized Base Rental Revenue Air Freight & Logistics 11.0 % Containers & Packaging 8.1 % Automobile Components 7.1 % Machinery 6.0 % Commercial Services & Supplies 5.8 % Trading Companies & Distribution (Industrial Goods) 5.4 % Distributors (Consumer Goods) 4.5 % Building Products 4.2 % Consumer Staples Distribution 3.7 % Broadline Retail 3.7 % Household Durables 3.6 % Media 3.1 % Specialty Retail 2.8 % Ground Transportation 2.6 % Beverages 2.4 % Food Products 2.2 % Electronic Equip, Instruments 2.1 % Health Care Equipment & Supplies 2.0 % Chemicals 2.0 % Textiles, Apparel, Luxury Goods 1.5 % Total 83.8 % (1) Industry classification based on Global Industry Classification Standard methodology. 32 Table of Contents Top Tenants The following table summarizes information about the 20 largest tenants in our portfolio based on total annualized base rental revenue as of December 31, 2023.
As of December 31, 2022, two of our 562 buildings were encumbered by mortgage indebtedness totaling approximately $8.0 million (excluding unamortized deferred financing fees, debt issuance costs, and fair market value premiums or discounts).
As of December 31, 2023, one of our 569 buildings was encumbered by mortgage indebtedness totaling approximately $4.5 million (excluding unamortized deferred financing fees, debt issuance costs, and fair market value premiums or discounts).
Top 20 Markets (1) % of Total Annualized Base Rental Revenue Chicago, IL 7.7 % Philadelphia, PA 7.2 % Greenville/Spartanburg, SC 5.5 % Milwaukee/Madison, WI 4.3 % Detroit, MI 4.2 % Pittsburgh, PA 4.1 % Columbus, OH 4.0 % Minneapolis/St Paul, MN 3.7 % Houston, TX 2.8 % Charlotte, NC 2.5 % West Michigan, MI 2.5 % El Paso, TX 2.5 % Indianapolis, IN 1.9 % Cleveland, OH 1.9 % Boston, MA 1.8 % Kansas City, MO 1.7 % Washington, DC 1.7 % Columbia, SC 1.6 % Westchester/So Connecticut, CT/NY 1.5 % Cincinnati/Dayton, OH 1.5 % Total 64.6 % (1) As defined by CoStar Realty Information, Inc.
Top 20 Markets (1) % of Total Annualized Base Rental Revenue Chicago, IL 6.9 % Greenville, SC 5.4 % Pittsburgh, PA 4.1 % Detroit, MI 4.1 % Columbus, OH 3.7 % Minneapolis, MN 3.6 % South Central, PA 3.3 % Philadelphia, PA 3.2 % Houston, TX 2.6 % El Paso, TX 2.4 % Milwaukee, WI 2.2 % Charlotte, NC 2.1 % Indianapolis, IN 2.1 % Sacramento, CA 1.9 % Cleveland, OH 1.8 % Boston, MA 1.7 % Kansas City, MO 1.7 % Columbia, SC 1.5 % Grand Rapids, MI 1.5 % Cincinnati, OH 1.3 % Total 57.1 % (1) Market classification based on CBRE-EA industrial market geographies.
Removed
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 — 1,667,523 — $ — — Month-to-month leases 1 29,892 — % 343 0.1 % 2023 71 8,912,511 8.1 % 41,436 7.7 % 2024 100 13,373,950 12.2 % 63,798 11.8 % 2025 102 14,316,715 13.0 % 65,502 12.1 % 2026 121 18,106,957 16.5 % 87,444 16.2 % 2027 95 14,196,659 12.9 % 71,200 13.2 % 2028 62 8,846,726 8.0 % 41,801 7.7 % 2029 47 7,977,761 7.3 % 39,201 7.3 % 2030 29 4,110,740 3.7 % 23,014 4.3 % 2031 41 7,312,872 6.6 % 35,034 6.5 % 2032 18 2,542,575 2.3 % 17,608 3.3 % Thereafter 36 10,328,555 9.4 % 52,770 9.8 % Total/weighted average 723 111,723,436 100.0 % $ 539,151 100.0 %
Added
Charles 1 Light Manufacturing 115,491 Vernon Hills 1 Warehouse / Distribution 95,486 Waukegan 1 Warehouse / Distribution 131,252 West Chicago 2 Warehouse / Distribution 649,558 West Chicago 5 Light Manufacturing 305,874 West Dundee 1 Warehouse / Distribution 154,475 Wood Dale 1 Light Manufacturing 137,607 Indiana Albion 1 Light Manufacturing 37,578 Elkhart 2 Warehouse / Distribution 170,100 Fort Wayne 1 Warehouse / Distribution 108,800 Goshen 1 Warehouse / Distribution 366,000 Greenwood 1 Warehouse / Distribution 154,440 Indianapolis 1 Warehouse / Distribution 78,600 Jeffersonville 1 Warehouse / Distribution 563,032 Lafayette 3 Warehouse / Distribution 466,400 Lebanon 3 Warehouse / Distribution 2,230,323 Marion 1 Warehouse / Distribution 249,920 Portage 2 Warehouse / Distribution 786,249 South Bend 1 Warehouse / Distribution 225,000 Whitestown 1 Warehouse / Distribution 258,000 Yoder 1 Warehouse / Distribution 764,177 Kansas Edwardsville 1 Warehouse / Distribution 270,869 Lenexa 3 Warehouse / Distribution 581,059 Olathe 2 Warehouse / Distribution 725,839 Wichita 3 Warehouse / Distribution 248,550 26 Table of Contents State City Number of Buildings Asset Type Total Rentable Square Feet Kentucky Bardstown 1 Warehouse / Distribution 102,318 Danville 1 Warehouse / Distribution 757,047 Erlanger 1 Warehouse / Distribution 108,620 Florence 2 Warehouse / Distribution 641,136 Hebron 1 Warehouse / Distribution 109,000 Louisiana Baton Rouge 3 Warehouse / Distribution 532,036 Shreveport 1 Warehouse / Distribution 420,259 Massachusetts Chicopee 1 Warehouse / Distribution 217,000 Hudson 1 Light Manufacturing 128,000 Malden 2 Light Manufacturing 109,943 Middleborough 1 Light Manufacturing 80,100 Norton 1 Warehouse / Distribution 200,000 South Easton 1 Light Manufacturing 86,000 Sterling 1 Warehouse / Distribution 119,056 Stoughton 2 Warehouse / Distribution 258,213 Westborough 1 Warehouse / Distribution 121,700 Maryland Elkridge 1 Warehouse / Distribution 167,223 Hagerstown 3 Warehouse / Distribution 1,424,620 Hampstead 1 Warehouse / Distribution 1,035,249 Hunt Valley 1 Warehouse / Distribution 46,867 White Marsh 1 Warehouse / Distribution 103,564 Maine Biddeford 2 Warehouse / Distribution 265,126 Gardiner 1 Warehouse / Distribution 265,000 Lewiston 1 Flex Office 60,000 Portland 1 Warehouse / Distribution 100,600 Michigan Belleville 1 Light Manufacturing 160,464 Canton 1 Warehouse / Distribution 491,049 Chesterfield 4 Warehouse / Distribution 478,803 Grand Rapids 4 Warehouse / Distribution 656,262 Holland 1 Warehouse / Distribution 195,000 Kentwood 2 Warehouse / Distribution 370,020 Kentwood 1 Light Manufacturing 85,157 Lansing 4 Warehouse / Distribution 770,425 Livonia 2 Warehouse / Distribution 285,306 Marshall 1 Light Manufacturing 57,025 Novi 3 Warehouse / Distribution 685,010 Plymouth 1 Warehouse / Distribution 125,214 Redford 1 Warehouse / Distribution 138,912 Romulus 1 Warehouse / Distribution 303,760 Romulus 1 Light Manufacturing 274,500 Sterling Heights 1 Warehouse / Distribution 108,000 Walker 1 Warehouse / Distribution 210,000 Warren 4 Warehouse / Distribution 981,540 Wixom 1 Warehouse / Distribution 126,720 Zeeland 1 Warehouse / Distribution 230,200 Minnesota Blaine 1 Warehouse / Distribution 248,816 Bloomington 1 Light Manufacturing 145,351 Brooklyn Park 1 Warehouse / Distribution 200,720 Carlos 1 Light Manufacturing 196,270 Eagan 1 Warehouse / Distribution 276,550 Inver Grove Heigh 1 Warehouse / Distribution 80,655 Maple Grove 2 Warehouse / Distribution 207,875 Mendota Heights 1 Warehouse / Distribution 87,183 New Hope 1 Light Manufacturing 107,348 27 Table of Contents State City Number of Buildings Asset Type Total Rentable Square Feet Newport 1 Warehouse / Distribution 83,000 Oakdale 2 Warehouse / Distribution 210,044 Plymouth 3 Warehouse / Distribution 357,085 Savage 1 Warehouse / Distribution 244,050 Shakopee 1 Warehouse / Distribution 160,000 Shakopee 1 Light Manufacturing 136,589 South Saint Paul 1 Warehouse / Distribution 422,727 St.
Added
Lease Expiration Year Number of Leases Expiring Total Rentable Square Feet (2) % of Total Occupied Square Feet Total Annualized Base Rental Revenue (in thousands) % of Total Annualized Base Rental Revenue Available — 2,062,300 — $ — — Month-to-month leases (1) 1 141,869 0.1 % 1,116 0.2 % 2024 62 8,256,998 7.5 % 44,397 7.6 % 2025 104 13,442,258 12.2 % 65,556 11.3 % 2026 139 19,727,593 17.9 % 104,264 18.0 % 2027 116 16,263,260 14.8 % 84,401 14.5 % 2028 93 11,847,861 10.8 % 63,905 11.0 % 2029 79 12,912,794 11.7 % 63,280 10.9 % 2030 38 6,038,157 5.5 % 37,409 6.4 % 2031 43 7,529,932 6.8 % 37,499 6.5 % 2032 19 2,800,575 2.5 % 19,507 3.4 % 2033 14 2,327,202 2.1 % 13,416 2.3 % Thereafter 31 8,920,793 8.1 % 45,628 7.9 % Total/weighted average 739 112,271,592 100.0 % $ 580,378 100.0 % (1) The month-to-month total rentable square footage includes a 40,000 square foot secondary short-term lease occupied by another tenant, whose lease count is included in their original long-term suite.
Added
(2) Leases previously scheduled to expire in 2024, totaling approximately 7.0 million square feet, have been amended to extend their lease expiration date as of December 31, 2023. These leases amended are excluded from 2024 expirations and are reflected in the new year of expiration. 33 Table of Contents

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

1 edited+0 added−0 removed1 unchanged
Biggest changeWe are not currently a party, as plaintiff or defendant, to any legal proceedings that, individually or in the aggregate, would be expected to have a material effect on our business, financial condition or results of operations if determined adversely to the Company. 32 Table of Contents Item 4. Mine Safety Disclosures Not applicable. PART II.
Biggest changeWe are not currently a party, as plaintiff or defendant, to any legal proceedings that, individually or in the aggregate, would be expected to have a material effect on our business, financial condition or results of operations if determined adversely to us. Item 4. Mine Safety Disclosures Not applicable. PART II.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

8 edited+0 added−0 removed4 unchanged
Biggest changeThe issuance of such shares of common stock was either registered under the Securities Act or effected in reliance upon an exemption from registration provided by Section 4(a)(2) under the Securities Act and the rules and regulations promulgated thereunder. We relied on the exemption based on representations given by the holders of the common units.
Biggest changeThe issuance of such shares of common stock was either registered under the Securities Act or effected in reliance upon an exemption from registration provided by Section 4(a)(2) under the Securities Act and the rules and regulations promulgated thereunder.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Information about our equity compensation plans and other related stockholder matters is incorporated by reference to our definitive Proxy Statement for our 2023 Annual Meeting of Stockholders.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Information about our equity compensation plans and other related stockholder matters is incorporated by reference to our definitive Proxy Statement for our 2024 Annual Meeting of Stockholders.
Subject to certain restrictions, common units may be redeemed for cash in an amount equal to the value of a share of common stock or, at our election, for a share of common stock on a one-for-one basis.
Subject to certain restrictions, common units in our Operating Partnership may be redeemed for cash in an amount equal to the value of a share of common stock or, at our election, for a share of common stock on a one-for-one basis.
The graph covers the period from December 31, 2017 to December 31, 2022 and assumes that $100 was invested in our common stock and in each index on December 31, 2017 and that all dividends were reinvested.
The graph covers the period from December 31, 2018 to December 31, 2023 and assumes that $100 was invested in our common stock and in each index on December 31, 2018 and that all dividends were reinvested.
Market Information Our common stock is listed on the NYSE and is traded under the symbol “STAG.” Holders of Our Common Stock As of February 13, 2023, we had 73 stockholders of record. This figure does not reflect the beneficial ownership of shares held in the nominee name.
Market Information Our common stock is listed on the NYSE and is traded under the symbol “STAG.” Holders of Our Common Stock As of February 12, 2024, we had 74 stockholders of record. This figure does not reflect the beneficial ownership of shares held in the nominee name.
All issuances of unregistered securities during the three months ended December 31, 2022, if any, have previously been disclosed in filings with the SEC. 33 Table of Contents Performance Graph The following graph provides a comparison of the cumulative total return on our common stock with the cumulative total return on the Standard & Poor’s 500 Index and the MSCI US REIT Index.
All other issuances of unregistered securities during the quarter ended December 31, 2023, if any, have previously been disclosed in filings with the SEC. 34 Table of Contents Performance Graph The following graph provides a comparison of the cumulative total return on our common stock with the cumulative total return on the Standard & Poor’s 500 Index and the MSCI US REIT Index.
Unregistered Sales of Equity Securities and Use of Proceeds Recent Sales of Unregistered Equity Securities During the quarter ended December 31, 2022, the Operating Partnership issued 33,494 common units upon exchange of outstanding LTIP units issued pursuant to the 2011 Plan.
Unregistered Sales of Equity Securities and Use of Proceeds Recent Sales of Unregistered Equity Securities During the quarter ended December 31, 2023, our Operating Partnership issued 119,965 common units upon exchange of outstanding LTIP units issued pursuant to the 2011 Plan.
During the quarter ended December 31, 2022, we issued 33,494 shares of common stock upon redemption of 33,494 common units held by various limited partners.
During the quarter ended December 31, 2023, we issued 172,743 shares of common stock upon redemption of 172,743 common units in our Operating Partnership held by various limited partners.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

101 edited+26 added−49 removed95 unchanged
Biggest changeThis table includes a reconciliation from our same store portfolio to our total portfolio by also providing information for the years ended December 31, 2022 and 2021 with respect to the buildings acquired and disposed of and Operating Portfolio buildings with expansions placed into service or transferred from the Value 41 Table of Contents Add Portfolio to the Operating Portfolio after December 31, 2020 and our flex/office buildings, Value Add Portfolio, and buildings classified as held for sale. 42 Table of Contents Same Store Portfolio Acquisitions/Dispositions Other Total Portfolio Year ended December 31, Change Year ended December 31, Year ended December 31, Year ended December 31, Change 2022 2021 $ % 2022 2021 2022 2021 2022 2021 $ % Revenue Operating revenue Rental income $ 526,819 $ 508,810 $ 18,009 3.5 % $ 102,758 $ 38,162 $ 24,800 $ 12,460 $ 654,377 $ 559,432 $ 94,945 17.0 % Other income 370 517 (147) (28.4) % 236 70 2,362 2,140 2,968 2,727 241 8.8 % Total operating revenue 527,189 509,327 17,862 3.5 % 102,994 38,232 27,162 14,600 657,345 562,159 95,186 16.9 % Expenses Property 100,674 97,501 3,173 3.3 % 19,732 8,419 5,295 2,066 125,701 107,986 17,715 16.4 % Net operating income (1) $ 426,515 $ 411,826 $ 14,689 3.6 % $ 83,262 $ 29,813 $ 21,867 $ 12,534 531,644 454,173 77,471 17.1 % Other expenses General and administrative 46,958 48,629 (1,671) (3.4) % Depreciation and amortization 275,040 238,699 36,341 15.2 % Loss on impairments 1,783 — 1,783 100.0 % Other expenses 4,363 2,878 1,485 51.6 % Total other expenses 328,144 290,206 37,938 13.1 % Total expenses 453,845 398,192 55,653 14.0 % Other income (expense) Interest and other income 103 121 (18) (14.9) % Interest expense (78,018) (63,484) (14,534) 22.9 % Debt extinguishment and modification expenses (838) (2,152) 1,314 (61.1) % Gain on the sales of rental property, net 57,487 97,980 (40,493) (41.3) % Total other income (expense) (21,266) 32,465 (53,731) (165.5) % Net income $ 182,234 $ 196,432 $ (14,198) (7.2) % (1) For a detailed discussion of NOI, including the reasons management believes NOI is useful to investors, see “Non-GAAP Financial Measures” below. 43 Table of Contents Net Income Net income for our total portfolio decreased by approximately $14.2 million or 7.2% to approximately $182.2 million for the year ended December 31, 2022 compared to approximately $196.4 million for the year ended December 31, 2021.
Biggest changeThis table includes a reconciliation from our same store portfolio to our total portfolio by also providing information for the years ended December 31, 2023 and 2022 with respect to the buildings acquired and sold after December 31, 2021, Operating Portfolio buildings with expansions placed into service or transferred from the Value Add Portfolio to the Operating Portfolio after December 31, 2021, flex/office buildings, Value Add Portfolio buildings, and buildings classified as held for sale. 42 Table of Contents Same Store Portfolio Acquisitions/Dispositions Other Total Portfolio Year ended December 31, Change Year ended December 31, Year ended December 31, Year ended December 31, Change 2023 2022 $ % 2023 2022 2023 2022 2023 2022 $ % Revenue Operating revenue Rental income $ 634,020 $ 601,536 $ 32,484 5.4 % $ 39,208 $ 30,970 $ 31,932 $ 21,871 $ 705,160 $ 654,377 $ 50,783 7.8 % Other income 211 369 (158) (42.8) % 176 1,144 2,288 1,455 2,675 2,968 (293) (9.9) % Total operating revenue 634,231 601,905 32,326 5.4 % 39,384 32,114 34,220 23,326 707,835 657,345 50,490 7.7 % Expenses Property 124,540 115,807 8,733 7.5 % 8,008 5,220 7,048 4,674 139,596 125,701 13,895 11.1 % Net operating income (1) $ 509,691 $ 486,098 $ 23,593 4.9 % $ 31,376 $ 26,894 $ 27,172 $ 18,652 568,239 531,644 36,595 6.9 % Other expenses General and administrative 47,491 46,958 533 1.1 % Depreciation and amortization 278,447 275,040 3,407 1.2 % Loss on impairment — 1,783 (1,783) (100.0) % Other expenses 4,693 4,363 330 7.6 % Total other expenses 330,631 328,144 2,487 0.8 % Total expenses 470,227 453,845 16,382 3.6 % Other income (expense) Interest and other income 68 103 (35) (34.0) % Interest expense (94,575) (78,018) (16,557) 21.2 % Debt extinguishment and modification expenses — (838) 838 (100.0) % Gain on the sales of rental property, net 54,100 57,487 (3,387) (5.9) % Total other income (expense) (40,407) (21,266) (19,141) 90.0 % Net income $ 197,201 $ 182,234 $ 14,967 8.2 % (1) For a detailed discussion of NOI, including the reasons management believes NOI is useful to investors, see “Non-GAAP Financial Measures” below. 43 Table of Contents Net Income Net income for our total portfolio increased by approximately $15.0 million or 8.2% to approximately $197.2 million for the year ended December 31, 2023 compared to approximately $182.2 million for the year ended December 31, 2022.
As of December 31, 2022, we were in compliance with the applicable financial covenants. Pursuant to the terms of our unsecured debt agreements, we may not pay distributions that exceed the minimum amount required for us to qualify and maintain our status as a REIT if a default or event of default occurs and is continuing.
As of December 31, 2023, we were in compliance with the applicable financial covenants. Pursuant to the terms of our unsecured debt agreements, we may not pay distributions that exceed the minimum amount required for us to qualify and maintain our status as a REIT if a default or event of default occurs and is continuing.
We own all of our properties and conduct substantially all of our business through our Operating Partnership, which we control and manage. As of December 31, 2022, we owned approximately 97.9% of the common units in our Operating Partnership, and our current and former executive officers, directors, senior employees and their affiliates, and other third parties owned the remaining 2.1%.
We own all of our properties and conduct substantially all of our business through our Operating Partnership, which we control and manage. As of December 31, 2023, we owned approximately 97.9% of the common units in our Operating Partnership, and our current and former executive officers, directors, senior employees and their affiliates, and other third parties owned the remaining 2.1%.
Operating cash flow from rental income, expense recoveries from tenants, and other income from operations is our principal source of funds to pay operating expenses, debt service, recurring capital expenditures, and the distributions required to maintain our REIT qualification. We primarily rely on the capital markets (common and preferred equity and debt securities) to fund our acquisition activity.
Operating cash flow from rental income, expense recoveries from tenants, and other income from operations is our principal source of funds to pay operating expenses, debt service, recurring capital expenditures, and the distributions required to maintain our REIT qualification. We primarily rely on the capital markets (equity and debt securities) to fund our acquisition activity.
Purchase Price Accounting We have determined that judgments regarding the allocation of the purchase price of properties based upon the fair value of the assets acquired and liabilities assume represents a critical accounting estimate that has the potential to be material in future periods and has been material in all periods presented in this Form 10-K.
Purchase Price Accounting We have determined that judgments regarding the allocation of the purchase price of properties based upon the fair value of the assets acquired and liabilities assumed represents a critical accounting estimate that has the potential to be material in future periods and has been material in all periods presented in this Form 10-K.
The increase was primarily attributable to incremental operating cash flows from property acquisitions completed after December 31, 2021, and operating performance at existing properties. These increases were partially offset by the loss of cash flows from property dispositions completed after December 31, 2021 and fluctuations in working capital due to timing of payments and rental receipts.
The increase was primarily attributable to incremental operating cash flows from property acquisitions completed after December 31, 2022, and operating performance at existing properties. These increases were partially offset by the loss of cash flows from property dispositions completed after December 31, 2022 and fluctuations in working capital due to timing of payments and rental receipts.
The following table summarizes our ATM common stock offering program as of December 31, 2022. Pursuant to the equity distribution agreements for our ATM common stock offering program, we may from time to time sell common stock through sales agents and their affiliates, including shares sold on a forward basis under forward sale agreements.
Pursuant to the equity distribution agreements for our ATM common stock offering program, we may from time to time sell common stock through sales agents and their affiliates, including shares sold on a forward basis under forward sale agreements. The following table summarizes our ATM common stock offering program as of December 31, 2023.
As of December 31, 2022, we owned approximately 97.9% of the common units in our Operating Partnership, and our current and former executive officers, directors, senior employees and their affiliates, and third parties that contributed properties to us in exchange for common units owned the remaining 2.1%.
As of December 31, 2023, we owned approximately 97.9% of the common units in our Operating Partnership, and our current and former executive officers, directors, senior employees and their affiliates, and third parties that contributed properties to us in exchange for common units in our Operating Partnership owned the remaining 2.1%.
We define same store properties as properties that were in the Operating Portfolio for the entirety of the comparative periods presented. The results for same store properties exclude termination fees, solar income, and other income adjustments. Same store properties exclude Operating Portfolio properties with expansions placed into service after December 31, 2020.
We define same store properties as properties that were in the Operating Portfolio for the entirety of the comparative periods presented. The results for same store properties exclude termination fees, solar income, and other income adjustments. Same store properties exclude Operating Portfolio properties with expansions placed into service after December 31, 2021.
Interest Rate Risk We use interest rate swaps to fix the rate of our variable rate debt. As of December 31, 2022, all of our outstanding variable rate debt, with the exception of our unsecured credit facility, was fixed with interest rate swaps through maturity. We recognize all derivatives on the balance sheet at fair value.
Interest Rate Risk We use interest rate swaps to fix the rate of our variable rate debt. As of December 31, 2023, all of our outstanding variable rate debt, with the exception of our unsecured credit facility, was fixed with interest rate swaps through maturity. We recognize all derivatives on the balance sheet at fair value.
Equity Preferred Stock We are authorized to issue up to 20,000,000 shares of preferred stock, par value $0.01 per share. As of December 31, 2022 and December 31, 2021, there were no shares of preferred stock issued or outstanding. C ommon Stock We are authorized to issue up to 300,000,000 shares of common stock, par value $0.01 per share.
Equity Preferred Stock We are authorized to issue up to 20,000,000 shares of preferred stock, par value $0.01 per share. As of December 31, 2023 and December 31, 2022, there were no shares of preferred stock issued or outstanding. C ommon Stock We are authorized to issue up to 300,000,000 shares of common stock, par value $0.01 per share.
We take a qualitative approach to consider whether an impairment of goodwill exists prior to quantitatively determining the fair value of the reporting unit in step one of the impairment test. We have recorded no impairments to goodwill as of December 31, 2022.
We take a qualitative approach to consider whether an impairment of goodwill exists prior to quantitatively determining the fair value of the reporting unit in step one of the impairment test. We have recorded no impairments to goodwill as of December 31, 2023.
Other Net Operating Income Our other assets include our flex/office buildings, Value Add Portfolio, buildings classified as held for sale, and Operating Portfolio buildings with expansions placed in service or transferred from the Value Add Portfolio to the Operating Portfolio after December 31, 2020.
Other Net Operating Income Our other assets include our flex/office buildings, Value Add Portfolio, buildings classified as held for sale, and Operating Portfolio buildings with expansions placed in service or transferred from the Value Add Portfolio to the Operating Portfolio after December 31, 2021.
Leases that comprise approximately 7.7% of our total annualized base rental revenue will expire during the period from January 1, 2023 to December 31, 2023, excluding month-to-month leases. We assume, based upon internal renewal probability estimates, that some of our tenants will renew and others will vacate and the associated space will be re-let subject to downtime assumptions.
Leases that comprise approximately 7.6% of our total annualized base rental revenue will expire during the period from January 1, 2024 to December 31, 2024, excluding month-to-month leases. We assume, based upon internal renewal probability estimates, that some of our tenants will renew and others will vacate and the associated space will be re-let subject to downtime assumptions.
Discussions of selected operating information for our same store portfolio and our total portfolio for the comparison of the years ended December 31, 2021 and 2020 that are not included in this Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the SEC on February 16, 2022.
Discussions of selected operating information for our same store portfolio and our total portfolio for the comparison of the years ended December 31, 2022 and 2021 that are not included in this Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC on February 14, 2023.
Comparison of the year ended December 31, 2022 to the year ended December 31, 2021 The following table summarizes selected operating information for our same store portfolio and our total portfolio for the years ended December 31, 2022 and 2021 (dollars in thousands).
Comparison of the year ended December 31, 2023 to the year ended December 31, 2022 The following table summarizes selected operating information for our same store portfolio and our total portfolio for the years ended December 31, 2023 and 2022 (dollars in thousands).
Supplemental Guarantor Information We have filed a registration statement with the SEC allowing us to offer, from time to time, an indefinite amount of equity and debt securities on an as-needed basis, including debt securities of our Operating Partnership that are guaranteed by the 51 Table of Contents Company.
Supplemental Guarantor Information We have filed a registration statement with the SEC allowing us to offer, from time to time, an indefinite amount of equity and debt securities on an as-needed basis, including debt securities of our Operating Partnership that are guaranteed by the Company.
For the definitions of certain terms used in the following discussion, refer to Item 1, “Business - Certain Definitions” included elsewhere in this report.. 34 Table of Contents Overview We are a REIT focused on the acquisition, ownership, and operation of industrial properties throughout the United States.
For the definitions of certain terms used in the following discussion, refer to Item 1, “Business - Certain Definitions” included elsewhere in this report. Overview We are a REIT focused on the acquisition, ownership, and operation of industrial properties throughout the United States.
Using the aforementioned assumptions, we expect that the rental rates on the respective new leases will be greater than the rates under existing leases expiring during the period January 1, 2023 to December 31, 2023, thereby resulting in an increase in revenue from the same space.
Using the aforementioned assumptions, we expect that, overall, the rental rates on the respective new leases will be greater than the rates under existing leases expiring during the period January 1, 2024 to December 31, 2024, thereby resulting in an increase in revenue from the same space.
Derivatives that are not designated as hedges must be adjusted to fair value and the changes in fair value must be reflected as income or expense. 52 Table of Contents We have established criteria for suitable counterparties in relation to various specific types of risk.
Derivatives that are not designated as hedges must be adjusted to fair value and the changes in fair value must be reflected as income or expense. We have established criteria for suitable counterparties in relation to various specific types of risk.
If a tenant subsequently terminates its lease, any unamortized portion of above and below market leases is accelerated into rental income and the in-place lease value and tenant relationships are accelerated into depreciation and amortization expense over the shortened lease term.
If a tenant subsequently 39 Table of Contents terminates its lease, any unamortized portion of above and below market leases is accelerated into rental income and the in-place lease value and tenant relationships are accelerated into depreciation and amortization expense over the shortened lease term.
As of December 31, 2022, all of our outstanding variable rate debt, with the exception of our unsecured credit facility, was fixed with interest rate swaps through maturity.
As of December 31, 2023, all of our outstanding variable rate debt, with the exception of our unsecured credit facility, was fixed with interest rate swaps through maturity.
The process for determining the allocation to these components requires estimates and assumptions, including rental rates, discount rates and exit capitalization rates, and land value per square foot, as well as available market information, and is therefore subject to subjective analysis and uncertainty.
The process for determining the allocation to these components requires estimates and assumptions, including rental rates, discount rates and exit capitalization rates, and land value per square foot, as well as available market information, and therefore involves subjective analysis and uncertainty.
The evaluation includes estimating and reviewing anticipated future undiscounted cash flows to be derived from the property. If such cash flows are less than the property’s carrying value, an impairment charge is recognized to the extent by which the asset’s carrying value exceeds the estimated fair value.
The evaluation includes estimating and reviewing anticipated future undiscounted cash flows to be derived from the property. If such cash flows are less than the property’s carrying value, an impairment charge is 38 Table of Contents recognized to the extent by which the asset’s carrying value exceeds the estimated fair value.
Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges.
Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of 40 Table of Contents forecasted transactions, are considered cash flow hedges.
(2) Our unsecured credit facility has a stated rate of one-month Term SOFR plus a 0.10% adjustment and a spread of 0.775%, less a sustainability-related interest rate adjustment of 0.02%.
(2) Our unsecured credit facility has a stated rate of one-month Term SOFR plus a 0.10% adjustment and a spread of 0.775%, less a sustainability-related interest rate adjustment of 0.02%. Our unsecured term loans have a stated interest rate of one-month Term SOFR plus a 0.10% adjustment and a spread of 0.85%, less a sustainability-related interest rate adjustment of 0.02%.
Due to the COVID-19 pandemic, geopolitical uncertainty, and recent legislative bills supporting U.S. infrastructure, we expect acceleration in a number of industrial specific trends to support stronger long-term demand, including: • 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 United States as a manufacturing and distribution location because of the size of the U.S. consumer market, an increase in overseas labor costs, a desire for greater supply chain resilience and redundancy which is driving higher inventory to sales ratios and greater domestic warehouse demand over the long-term (i.e. the shortening and fattening of the supply chain); and • the overall quality of the transportation infrastructure in the United States.
Due to demographic/consumer trends, geopolitical uncertainty and recent legislation supporting U.S. infrastructure, we expect acceleration in a number of industrial specific trends to support stronger long term demand, including: • the continued growth 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 United States as a manufacturing and distribution location because of the size of the U.S. consumer market, an increase in overseas labor costs, a desire for greater supply chain resilience and redundancy which is driving higher inventory to sales ratios and greater domestic warehouse demand over the long term (i.e. the shortening and fattening of the supply chain); and • the overall quality of the transportation infrastructure in the United States.
Neither extension option is subject to lender consent, assuming proper notice and satisfaction of the conditions. We are required to pay a 49 Table of Contents facility fee on the aggregate commitment amount (currently $1.0 billion) at a rate per annum of 0.1% to 0.3%, depending on our debt rating, as defined in the credit agreement.
Neither extension option is subject to lender consent, assuming proper notice and satisfaction of the conditions. We are required to pay a facility fee on the aggregate commitment amount (currently $1.0 billion) at a rate per annum of 0.1% to 0.3%, depending on our debt rating, as defined in the credit agreement. The facility fee is due and payable quarterly.
As discussed below in “Critical Accounting Policies,” we allocate the purchase price of properties based upon the fair value of the assets acquired and liabilities assumed, which generally consist of land, buildings, tenant improvements, mortgage debt assumed, and deferred leasing intangibles, which includes in-place leases, above market and below market leases, and tenant relationships, and is therefore subject to subjective 37 Table of Contents analysis and uncertainty.
As discussed below in “Critical Accounting Policies,” we allocate the purchase price of properties based upon the fair value of the assets acquired and liabilities assumed, which generally consist of land, buildings, tenant improvements, mortgage debt assumed, and deferred leasing intangibles, which includes in-place leases, above market and below market leases, and tenant relationships, and therefore involves subjective analysis and uncertainty.
At December 31, 2022, the one-month Term Term SOFR was 4.35806%. The current 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 or discounts.
At December 31, 2023, the one-month Term SOFR was 5.35472%. The current 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 or discounts.
Debt Capital Structure December 31, 2022 Total principal outstanding (in thousands) $ 2,508,040 Weighted average duration (years) 5.2 % Secured debt 0.3 % % Debt maturing next 12 months 4.1 % Net Debt to Real Estate Cost Basis (1) 36.0 % (1) “Net Debt” means amounts outstanding under our unsecured credit facility, unsecured term loans, unsecured notes, and mortgage notes, less cash and cash equivalents.
Debt Capital Structure December 31, 2023 Total principal outstanding (in thousands) $ 2,631,537 Weighted average duration (years) 4.3 % Secured debt 0.2 % % Debt maturing next 12 months 1.9 % Net Debt to Real Estate Cost Basis (1) 36.3 % (1) “Net Debt” means amounts outstanding under our unsecured credit facility, unsecured term loans, unsecured notes, and mortgage notes, less cash and cash equivalents.
While the macro-economic conditions continue to evolve and could result in weakening tenant cash flows and rising vacancy rates, we believe we will continue to benefit from having a well-diversified portfolio across 35 Table of Contents various markets, tenant industries, and lease terms.
While the macro-economic conditions continue to evolve and could result in tighter credit conditions, weakening tenant cash flows, and rising vacancy rates, we believe we will continue to benefit from having a well-diversified portfolio across various markets, tenant industries, and lease terms.
Additionally, there was approximately $5.7 million and $3.4 million of termination, solar, and other income adjustments from certain buildings in our same store portfolio for the years ended December 31, 2022 and December 31, 2021, respectively. Total Other Expenses Total other expenses consist of general and administrative expenses, depreciation and amortization, loss on impairments, and other expenses.
Additionally, there was approximately $4.1 million and $4.7 million of termination, solar, and other income adjustments from certain buildings in our same store portfolio for the years ended December 31, 2023 and December 31, 2022, respectively. Total Other Expenses Total other expenses consist of general and administrative, depreciation and amortization, loss on impairment, and other expenses.
Additionally, for the year ended December 31, 2022, leases related to the Value Add Portfolio and first generation leasing, with a total of 1,069,650 square feet, are excluded from the Operating Portfolio statistics above. Property Operating Expenses Our property operating expenses generally consist of utilities, real estate taxes, management fees, insurance, and site repair and maintenance costs.
Additionally, for the year ended December 31, 2023, leases related to the Value Add Portfolio and first generation leasing, with a total of 1,609,083 square feet, are excluded from the Operating Portfolio statistics above. 37 Table of Contents Property Operating Expenses Our property operating expenses generally consist of utilities, real estate taxes, management fees, insurance, and site repair and maintenance costs.
In addition, we believe that certain characteristics of our business and capital structure should position us well in an uncertain environment, including our minimal floating rate debt exposure (taking into account our hedging activities), strong liquidity, and access to capital, and the fact that many of our competitors for acquisitions tend to be smaller local and regional investors who may be more heavily impacted by rising interest rates and lack of available of capital.
In addition to our diversified portfolio, we believe that certain characteristics of our business and capital 36 Table of Contents structure should position us well in an uncertain environment, including our minimal floating rate debt exposure (taking into account our hedging activities), strong banking relationships, strong liquidity, access to capital, and the fact that many of our competitors for the assets we purchase tend to be smaller local and regional investors who may have been more heavily impacted by rising interest rates and lack of available capital.
Other NOI also includes termination, solar, and other income adjustments from buildings in our same store portfolio. For a detailed reconciliation of our other NOI to net income, see the table above. These buildings contributed approximately $16.2 million and $9.1 million to NOI for the years ended December 31, 2022 and December 31, 2021, respectively.
Other NOI also includes termination, solar, and other income adjustments from buildings in our same store portfolio. For a detailed reconciliation of our other NOI to net income, see the table above. These buildings contributed approximately $23.1 million and $14.0 million to NOI for the years ended December 31, 2023 and December 31, 2022, respectively.
As of December 31, 2022, one-month Term SOFR for the Unsecured Term Loans A, F, G, H, and I was swapped to a fixed rate of 1.31%, 2.11%, 0.26%, 2.90%, and 2.04%, respectively (which includes the 0.10% adjustment). One-month Term SOFR for the Unsecured Term Loan G will be swapped to a fixed rate of 0.95% effective April 18, 2023.
As of December 31, 2023, one-month Term SOFR for the Unsecured Term Loans A, F, G, H, and I was swapped to a fixed rate of 1.31%, 2.11%, 0.95%, 2.90%, and 2.66%, respectively (which includes the 0.10% adjustment). One-month Term SOFR for the Unsecured Term Loan H will be swapped to a fixed rate of 2.50% effective January 12, 2024.
As of December 31, 2022, our buildings were approximately 98.5% leased, with no single tenant accounting for more than approximately 3.0% of our total annualized base rental revenue and no single industry accounting for more than approximately 10.9% of our total annualized base rental revenue.
As of December 31, 2023, our buildings were approximately 98.2% leased, with no single tenant accounting for more than approximately 2.9% of our total annualized base rental revenue and no single industry accounting for more than approximately 11.0% of our total annualized base rental revenue.
Year ended December 31, Reconciliation of Net Income to FFO (in thousands) 2022 2021 2020 Net income $ 182,234 $ 196,432 $ 206,795 Rental property depreciation and amortization 274,823 238,487 214,464 Loss on impairments 1,783 — 5,577 Gain on the sales of rental property, net (57,487) (97,980) (135,733) FFO $ 401,353 $ 336,939 $ 291,103 Preferred stock dividends — (1,289) (5,156) Redemption of preferred stock — (2,582) — Amount allocated to restricted shares of common stock and unvested units (558) (838) (756) FFO attributable to common stockholders and unit holders $ 400,795 $ 332,230 $ 285,191 Net Operating Income We consider NOI to be an appropriate supplemental performance measure to net income (loss) because we believe it helps investors and management understand the core operations of our buildings.
Year ended December 31, Reconciliation of Net Income to FFO (in thousands) 2023 2022 2021 Net income $ 197,201 $ 182,234 $ 196,432 Rental property depreciation and amortization 278,216 274,823 238,487 Loss on impairment — 1,783 — Gain on the sales of rental property, net (54,100) (57,487) (97,980) FFO $ 421,317 $ 401,353 $ 336,939 Preferred stock dividends — — (1,289) Redemption of preferred stock — — (2,582) Amount allocated to restricted shares of common stock and unvested units (546) (558) (838) FFO attributable to common stockholders and unit holders $ 420,771 $ 400,795 $ 332,230 Net Operating Income We consider NOI to be an appropriate supplemental performance measure to net income (loss) because we believe it helps investors and management understand the core operations of our buildings.
As of December 31, 2022, we owned 562 buildings in 41 states with approximately 111.7 million rentable square feet, consisting of 484 warehouse/distribution buildings, 74 light manufacturing buildings, one flex/office building, and three Value Add Portfolio buildings. We own both single- and multi-tenant properties, although the majority of our portfolio is single-tenant.
As of December 31, 2023, we owned 569 buildings in 41 states with approximately 112.3 million rentable square feet, consisting of 493 warehouse/distribution buildings, 70 light manufacturing buildings, one flex/office building, and five Value Add Portfolio buildings. We own both single- and multi-tenant properties, although the majority of our portfolio is single-tenant.
Same store rental income, which is comprised of lease income and other billings as discussed below, increased by approximately $18.0 million or 3.5% to approximately $526.8 million for the year ended December 31, 2022 compared to approximately $508.8 million for the year ended December 31, 2021.
Same store rental income, which is comprised of lease income and other billings as discussed below, increased by approximately $32.5 million or 5.4% to approximately $634.0 million for the year ended December 31, 2023 compared to approximately $601.5 million for the year ended December 31, 2022.
Those tests involve the percentage of income that we earn from specified sources, the percentage of our assets that falls within specified categories, the diversity of our capital stock ownership and the percentage of our earnings that we distribute. On July 1, 2022, our board of directors appointed William R.
Those tests involve the percentage of income that we earn from specified sources, the percentage of our assets that falls within specified categories, the diversity of our capital stock ownership and the percentage of our earnings that we distribute.
Loan Principal Outstanding as of December 31, 2022 (in thousands) Interest Rate (1)(2) Maturity Date Prepayment Terms (3) Unsecured credit facility: Unsecured Credit Facility (4) $ 175,000 Term SOFR + 0.855% October 23, 2026 i Total unsecured credit facility 175,000 Unsecured term loans: Unsecured Term Loan F 200,000 2.94 % January 12, 2025 i Unsecured Term Loan G 300,000 1.09 % February 5, 2026 i Unsecured Term Loan A 150,000 2.14 % March 15, 2027 i Unsecured Term Loan H 187,500 3.75 % January 25, 2028 i Unsecured Term Loan I 187,500 2.89 % January 25, 2028 i Total unsecured term loans 1,025,000 Total unamortized deferred financing fees and debt issuance costs (4,560) Total carrying value unsecured term loans, net 1,020,440 Unsecured notes: Series F Unsecured Notes (5) 100,000 3.98 % January 5, 2023 ii Series A Unsecured Notes 50,000 4.98 % October 1, 2024 ii Series D Unsecured Notes 100,000 4.32 % February 20, 2025 ii Series G Unsecured Notes 75,000 4.10 % June 13, 2025 ii Series B Unsecured Notes 50,000 4.98 % July 1, 2026 ii Series C Unsecured Notes 80,000 4.42 % December 30, 2026 ii Series E Unsecured Notes 20,000 4.42 % February 20, 2027 ii Series H Unsecured Notes 100,000 4.27 % June 13, 2028 ii Series I Unsecured Notes 275,000 2.80 % September 29, 2031 ii Series K Unsecured Notes 400,000 4.12 % June 28, 2032 ii Series J Unsecured Notes 50,000 2.95 % September 28, 2033 ii Total unsecured notes 1,300,000 Total unamortized deferred financing fees and debt issuance costs (4,558) Total carrying value unsecured notes, net 1,295,442 Mortgage notes (secured debt): Thrivent Financial for Lutherans 3,296 4.78 % December 15, 2023 iii United of Omaha Life Insurance Company 4,744 3.71 % October 1, 2039 ii Total mortgage notes 8,040 Net unamortized fair market value discount (137) Total unamortized deferred financing fees and debt issuance costs (5) Total carrying value mortgage notes, net 7,898 Total / weighted average interest rate (6) $ 2,498,780 3.39 % (1) Interest rate as of December 31, 2022.
Indebtedness (dollars in thousands) Principal Outstanding as of December 31, 2023 (in thousands) Interest Rate (1)(2) Maturity Date Prepayment Terms (3) Unsecured credit facility: Unsecured Credit Facility (4) $ 402,000 Term SOFR + 0.855% October 23, 2026 i Total unsecured credit facility 402,000 Unsecured term loans: Unsecured Term Loan F 200,000 2.94 % January 12, 2025 i Unsecured Term Loan G 300,000 1.78 % February 5, 2026 i Unsecured Term Loan A 150,000 2.14 % March 15, 2027 i Unsecured Term Loan H 187,500 3.73 % January 25, 2028 i Unsecured Term Loan I 187,500 3.49 % January 25, 2028 i Total unsecured term loans 1,025,000 Total unamortized deferred financing fees and debt issuance costs (3,227) Total carrying value unsecured term loans, net 1,021,773 Unsecured notes: Series A Unsecured Notes 50,000 4.98 % October 1, 2024 ii Series D Unsecured Notes 100,000 4.32 % February 20, 2025 ii Series G Unsecured Notes 75,000 4.10 % June 13, 2025 ii Series B Unsecured Notes 50,000 4.98 % July 1, 2026 ii Series C Unsecured Notes 80,000 4.42 % December 30, 2026 ii Series E Unsecured Notes 20,000 4.42 % February 20, 2027 ii Series H Unsecured Notes 100,000 4.27 % June 13, 2028 ii Series I Unsecured Notes 275,000 2.80 % September 29, 2031 ii Series K Unsecured Notes 400,000 4.12 % June 28, 2032 ii Series J Unsecured Notes 50,000 2.95 % September 28, 2033 ii Total unsecured notes 1,200,000 Total unamortized deferred financing fees and debt issuance costs (4,128) Total carrying value unsecured notes, net 1,195,872 Mortgage notes (secured debt): United of Omaha Life Insurance Company 4,537 3.71 % October 1, 2039 ii Total mortgage notes 4,537 Net unamortized fair market value discount (136) Total unamortized deferred financing fees and debt issuance costs — Total carrying value mortgage notes, net 4,401 Total / weighted average interest rate (5) $ 2,624,046 3.79 % (1) Interest rate as of December 31, 2023.
Any future dividends on our common stock are declared in the sole discretion of our board of directors, subject to the distribution requirements to maintain our REIT status for federal income tax purposes, and may be reduced or stopped for any reason, including to use funds for other liquidity requirements.
Any future dividends on our common stock are declared in the sole discretion of our board of directors, subject to the distribution requirements to maintain our REIT status for federal income tax purposes, and may be reduced or stopped for any reason, including to use funds for other liquidity requirements. 48 Table of Contents Indebtedness Outstanding The following table summarizes certain information with respect to our indebtedness outstanding as of December 31, 2023.
Our ability to lease our properties and the attendant rental rate is dependent upon, among other things, (i) the overall economy, (ii) the supply/demand dynamic in our markets, (iii) the quality of our properties, including age, clear height, and configuration, and (iv) our tenants’ ability to meet their contractual obligations to us. 36 Table of Contents The following table summarizes our Operating Portfolio leases that commenced during the year ended December 31, 2022.
Our ability to lease our properties and the attendant rental rate is dependent upon, among other things, (i) the overall economy, (ii) the supply/demand dynamic in our markets, (iii) the quality of our properties, including age, clear height, and configuration, and (iv) our tenants’ ability to meet their contractual obligations to us.
This increase was due to increases in insurance, utility, repairs and maintenance, snow removal, and other expenses of approximately $0.6 million, $1.0 million, $0.8 million, $0.7 million, and $0.7 million, respectively. These increases were partially offset by a decrease in real estate tax expense of approximately $0.6 million due to a decrease in real estate taxes levied by taxing authorities.
This increase was due to increases in real estate tax, insurance, repairs and maintenance, other expenses, and utilities expense of approximately $4.0 million, $2.5 million, $1.4 million, $1.4 million, and $0.2 million, respectively. These increases were partially offset by a reduction of snow removal expense of approximately $0.8 million.
We present those properties classified as held for sale with any qualifying assets and liabilities associated with those properties as held for sale in the accompanying Consolidated Balance Sheets. 38 Table of Contents Using information available at the time of acquisition, we allocate the purchase price of properties acquired based upon the fair value of the assets acquired and liabilities assumed, which generally consist of land, buildings, tenant improvements, mortgage debt assumed, and deferred leasing intangibles, which includes in-place leases, above market and below market leases, and tenant relationships.
Using information available at the time of acquisition, we allocate the purchase price of properties acquired based upon the fair value of the assets acquired and liabilities assumed, which generally consist of land, buildings, tenant improvements, mortgage debt assumed, and deferred leasing intangibles, which includes in-place leases, above market and below market leases, and tenant relationships.
The decrease was primarily attributable to the acquisition of 26 buildings during the year ended December 31, 2022 of approximately $472.6 million, compared to the acquisition of 74 buildings during the year ended December 31, 2021 of approximately $1,365.8 million.
The decrease was primarily attributable to the acquisition of 16 buildings during the year ended December 31, 2023 of approximately $321.9 million, compared to the acquisition of 26 buildings during the year ended December 31, 2022 of approximately $472.6 million.
However, we also have modified gross leases and gross leases in our building portfolio, which may require us to absorb certain building related expenses of our tenants. In our modified gross leases, we are responsible for certain building related expenses during the lease term, but most of the expenses are passed through to the tenant for reimbursement to us.
In our modified gross leases, we are responsible for certain building related expenses during the lease term, but most of the expenses are passed through to the tenant for reimbursement to us. In our gross leases, we are responsible for all expenses related to the building and its operation during the lease term.
Other expenses also increased approximately $1.5 million, which was primarily attributed to the relinquishment of an acquisition deposit of approximately $2.1 million related to a terminated acquisition contract during the year ended December 31, 2022.
Other expenses also increased approximately $0.3 million due to the relinquishment of an acquisition deposit of approximately $2.5 million related to the termination of an acquisition contract in January 2023, whereas the relinquishment of an acquisition deposit of approximately $2.1 million related to a terminated acquisition contract was recognized during the year ended December 31, 2022.
Rental Income We receive income primarily in the form of rental income from the tenants who occupy our buildings. The amount of rental income generated by the buildings in our portfolio depends principally on occupancy and rental rates.
The amount of rental income generated by the buildings in our portfolio depends principally on occupancy and rental rates.
Net cash provided by financing activities decreased approximately $823.9 million to approximately $63.2 million for the year ended December 31, 2022, compared to approximately $887.1 million for the year ended December 31, 2021.
Net cash provided by (used in) financing activities decreased approximately $138.9 million to approximately $75.7 million net cash used in financing activities for the year ended December 31, 2023, compared to approximately $63.2 million net cash provided by financing activities for the year ended December 31, 2022.
Scheduled Lease Expirations Our ability to re-lease space subject to expiring leases will impact our results of operations and is affected by economic and competitive conditions in our markets and by the desirability of our individual buildings.
Our overall performance will be affected by the extent to which we are able to pass-through property operating expenses to our tenants. Scheduled Lease Expirations Our ability to re-lease space subject to expiring leases will impact our results of operations and is affected by economic and competitive conditions in our markets and by the desirability of our individual buildings.
Funds From Operations FFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, and we believe that to understand our performance further, FFO should be compared with our reported net income (loss) in accordance with GAAP, as presented in our consolidated financial statements included in this report.
As a result, we are required to include in this report a statement of why management believes that presentation of these measures provides useful information to investors. 45 Table of Contents Funds From Operations FFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, and we believe that to understand our performance further, FFO should be compared with our reported net income (loss) in accordance with GAAP, as presented in our consolidated financial statements included in this report.
Year ended December 31, Reconciliation of Net Income to NOI (in thousands) 2022 2021 2020 Net income $ 182,234 $ 196,432 $ 206,795 General and administrative 46,958 48,629 40,072 Depreciation and amortization 275,040 238,699 214,738 Interest and other income (103) (121) (446) Interest expense 78,018 63,484 62,343 Loss on impairments 1,783 — 5,577 Gain on involuntary conversion — — (2,157) Debt extinguishment and modification expenses 838 2,152 834 Other expenses 4,363 2,878 2,029 Gain on the sales of rental property, net (57,487) (97,980) (135,733) Net operating income $ 531,644 $ 454,173 $ 394,052 Cash Flows Comparison of the year ended December 31, 2022 to the year ended December 31, 2021 The following table summarizes our cash flows for the year ended December 31, 2022 compared to the year ended December 31, 2021.
Year ended December 31, Reconciliation of Net Income to NOI (in thousands) 2023 2022 2021 Net income $ 197,201 $ 182,234 $ 196,432 General and administrative 47,491 46,958 $ 48,629 Depreciation and amortization 278,447 275,040 $ 238,699 Interest and other income (68) (103) $ (121) Interest expense 94,575 78,018 $ 63,484 Loss on impairment — 1,783 $ — Debt extinguishment and modification expenses — 838 $ 2,152 Other expenses 4,693 4,363 $ 2,878 Gain on the sales of rental property, net (54,100) (57,487) $ (97,980) Net operating income $ 568,239 $ 531,644 $ 454,173 Cash Flows Comparison of the year ended December 31, 2023 to the year ended December 31, 2022 The following table summarizes our cash flows for the year ended December 31, 2023 compared to the year ended December 31, 2022.
Since the terms under our ground leases are significantly longer than the terms of borrowings available to us on a fully-collateralized basis, the estimate of this rate requires significant judgment, and consider factors such as yields on outstanding public debt and other market based pricing on longer duration financing instruments. 39 Table of Contents Goodwill The excess of the cost of an acquired business over the net of the amounts assigned to assets acquired (including identified intangible assets) and liabilities assumed is recorded as goodwill.
Since the terms under our ground leases are significantly longer than the terms of borrowings available to us on a fully-collateralized basis, the estimate of this rate requires significant judgment, and considers factors such as yields on outstanding public debt and other market based pricing on longer duration financing instruments.
(6) The weighted average interest rate was calculated using the fixed interest rate swapped on the notional amount of $1,025.0 million of debt, 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 or discounts.
(5) The weighted average interest rate was calculated using the fixed interest rate swapped on the notional amount of $1,025.0 million of debt 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 or discounts. 49 Table of Contents The aggregate undrawn nominal commitments on our unsecured credit facility as of December 31, 2023 was approximately $594.7 million, including issued letters of credit.
Net cash used in investing activities decreased approximately $772.9 million to approximately $447.5 million for the year ended December 31, 2022, compared to approximately $1,220.4 million for the year ended December 31, 2021.
Net cash used in investing activities decreased approximately $127.2 million to approximately $320.3 million for the year ended December 31, 2023, compared to approximately $447.5 million for the year ended December 31, 2022.
We only use counterparties that have a credit rating of no lower than investment grade at swap inception from Moody’s Investor Services, Standard & Poor’s, Fitch Ratings, or other nationally recognized rating agencies. The following table summarizes our outstanding interest rate swaps as of December 31, 2022.
We only use counterparties that have a credit rating of no lower than investment grade at swap inception from Moody’s Investor Services, Standard & Poor’s, Fitch Ratings, or other nationally recognized rating agencies. The swaps are all designated as cash flow hedges of interest rate risk, and all are valued as Level 2 financial instruments.
On December 31, 2022, we owned 455 industrial buildings consisting of approximately 91.9 million square feet, which represents approximately 82.2% of our total portfolio, that are considered our same store portfolio in the analysis below. Same store occupancy increased approximately 1.3% to 99.1% as of December 31, 2022 compared to 97.8% as of December 31, 2021.
On December 31, 2023, we owned 513 industrial buildings consisting of approximately 101.7 million square feet, which represents approximately 90.6% of our total portfolio, that are considered our same store portfolio in the analysis below. Same store occupancy decreased approximately 0.7% to 98.4% as of December 31, 2023 compared to 99.1% as of December 31, 2022.
These decreases in general and administrative expenses were offset by an increase in payroll costs. Total Other Income (Expense) Total other income (expense) consists of interest and other income, interest expense, debt extinguishment and modification expenses, and gain on the sales of rental property, net.
Total Other Income (Expense) Total other income (expense) consists of interest and other income, interest expense, debt extinguishment and modification expenses, and gain on the sales of rental property, net.
Subsequent to December 31, 2020, we acquired 90 buildings consisting of approximately 15.4 million square feet (excluding ten buildings that were included in the Value Add Portfolio at December 31, 2022 or transferred from the Value Add Portfolio to the Operating Portfolio after December 31, 2020), and sold 30 buildings consisting of approximately 4.4 million square feet and one land parcel.
Subsequent to December 31, 2021, we acquired 35 buildings consisting of approximately 5.4 million square feet (excluding seven buildings that were included in the Value Add Portfolio at December 31, 2023 or transferred from the Value Add Portfolio to the Operating Portfolio after December 31, 2021), and sold 18 buildings consisting of approximately 3.8 million 44 Table of Contents square feet.
Conditions in Our Markets The buildings in our portfolio are located in markets throughout the United States. Positive or negative changes in economic or other conditions, new supply, adverse weather conditions, natural disasters, epidemics, and other factors in these markets may affect our overall performance.
Positive or negative changes in economic or other conditions, new supply, adverse weather conditions, natural disasters, epidemics, and other factors in these markets may affect our overall performance. Rental Income We receive income primarily in the form of rental income from the tenants who occupy our buildings.
The initial maturity date is October 24, 2025, or such later date which may be extended pursuant to two six-month extension options exercisable by us in our discretion upon advance written notice.
(3) Prepayment terms consist of (i) pre-payable with no penalty; and (ii) pre-payable with penalty. (4) The capacity of our unsecured credit facility is $1.0 billion. The initial maturity date is October 24, 2025, or such later date which may be extended pursuant to two six-month extension options exercisable by us in our discretion upon advance written notice.
We did not initially receive any proceeds from the sale of shares on a forward basis. On March 29, 2022, we physically settled in full the forward sales agreement by issuing 1,200,000 shares of common stock for net proceeds of approximately $49.7 million, or $41.39 per share.
We did not initially receive any proceeds from the sale of shares on a forward basis. On July 27, 2023, we physically settled in full the forward sales agreements by issuing 992,295 shares of common stock for net proceeds of approximately $35.9 million, or $36.2046 per share.
For the years ended December 31, 2022 and December 31, 2021, the buildings acquired after December 31, 2020 contributed approximately $80.9 million and $18.8 million to NOI, respectively. For the years ended 44 Table of Contents December 31, 2022 and December 31, 2021, the buildings sold after December 31, 2020 contributed approximately $2.4 million and $11.0 million to NOI, respectively.
For the years ended December 31, 2023 and December 31, 2022, the buildings acquired after December 31, 2021 contributed approximately $28.2 million and $16.0 million to NOI, respectively. For the years ended December 31, 2023 and December 31, 2022, the buildings sold after December 31, 2021 contributed approximately $3.2 million and $10.9 million to NOI, respectively.
Events of Default: Our unsecured credit facility and unsecured term loans contain customary events of default, including, but not limited to, non-payment of principal, interest, fees or other amounts, defaults in the compliance with the financial and other covenants contained in the applicable loan agreement, cross-defaults to other material debt, and bankruptcy or other insolvency events.
Pursuant to the terms of our unsecured loan agreements, if a default or event of default occurs and is continuing, we may not pay distributions that exceed the minimum amount required for us to qualify and maintain our status as a REIT. 50 Table of Contents Events of Default: Our unsecured credit facility and unsecured term loans contain customary events of default, including, but not limited to, non-payment of principal, interest, fees or other amounts, defaults in the compliance with the financial and other covenants contained in the applicable loan agreement, cross-defaults to other material debt, and bankruptcy or other insolvency events.
Unsecured Notes Subsequent to December 31, 2022, on January 5, 2023, we redeemed in full at maturity the $100.0 million in aggregate principal amount of the Series F Unsecured Notes with a fixed interest rate of 3.98%.
The interest rate adjustment, a 0.02% interest rate reduction for each instrument, will end on June 29, 2024, in accordance with the respective loan agreements. On January 5, 2023, we redeemed in full at maturity the $100.0 million in aggregate principal amount of the Series F Unsecured Notes with a fixed interest rate of 3.98%.
Factors That May Influence Future Results of Operations Our ability to increase revenues or cash flow will depend in part on our (i) external growth, specifically acquisition activity, and (ii) internal growth, specifically occupancy and rental rates on our portfolio. A variety of other factors, including those noted below, also affect our future results of operations.
In addition, on March 31, 2023, Steven T. Kimball joined our Company as Executive Vice President–Real Estate Operations. Factors That May Influence Future Results of Operations Our ability to increase revenues or cash flow will depend in part on our (i) external growth, specifically acquisition activity, and (ii) internal growth, specifically occupancy and rental rates on our portfolio.
When we are the owner of tenant improvements or other capital items, the cost to construct the tenant improvements or other capital items, including costs paid for or reimbursed by the tenants, is recorded as capital assets.
In instances when it is determined that the tenant is the owner of tenant improvements, rental income recognition begins when the tenant takes possession of or controls the physical use of the leased space. 41 Table of Contents When we are the owner of tenant improvements or other capital items, the cost to construct the tenant improvements or other capital items, including costs paid for or reimbursed by the tenants, is recorded as capital assets.
Any rental concessions in such leases are accounted for on a straight-line basis over the term of the lease.
The following table summarizes our Operating Portfolio leases that commenced during the year ended December 31, 2023. Any rental concessions in such leases are accounted for on a straight-line basis over the term of the lease.
As of December 31, 2022, the fair value of all 30 of our interest rate swaps were in an asset position of approximately $72.2 million, including any adjustment for nonperformance risk related to these agreements. As of December 31, 2022, we had $1.2 billion of variable rate debt.
Level 2 financial instruments are defined as significant other observable inputs. As of December 31, 2023, we had 21 interest rate swaps outstanding that were in an asset position of approximately $50.4 million, including any adjustment for nonperformance risk related to these agreements. As of December 31, 2023, we had approximately $1.4 billion of variable rate debt.
Operating Portfolio Square Feet Cash Basis Rent Per Square Foot SL Rent Per Square Foot Total Costs Per Square Foot (1) Cash Rent Change SL Rent Change Weighted Average Lease Term (years) Rental Concessions per Square Foot (2) Year ended December 31, 2022 New Leases 4,376,929 $ 5.34 $ 5.67 $ 2.73 18.6 % 31.2 % 5.9 $ 0.58 Renewal Leases 7,795,545 $ 4.84 $ 5.10 $ 1.09 11.8 % 20.5 % 4.7 $ 0.12 Total/weighted average 12,172,474 $ 5.02 $ 5.30 $ 1.69 14.3 % 24.3 % 5.1 $ 0.28 (1) “Total Costs” means the costs for improvements of vacant and renewal spaces, as well as the contingent-based legal fees and commissions for leasing transactions.
Operating Portfolio Square Feet Cash Basis Rent Per Square Foot SL Rent Per Square Foot Total Costs Per Square Foot (1) Cash Rent Change SL Rent Change Weighted Average Lease Term (years) Rental Concessions per Square Foot (2) Year ended December 31, 2023 New Leases 2,991,646 $ 7.16 $ 7.62 $ 3.78 43.3 % 54.3 % 5.3 $ 0.67 Renewal Leases 10,322,350 $ 5.59 $ 5.89 $ 1.13 26.9 % 40.5 % 4.3 $ 0.07 Total/weighted average 13,313,996 $ 5.94 $ 6.28 $ 1.72 31.0 % 44.0 % 4.5 $ 0.21 (1) “Total Costs” means the costs for improvements of vacant and renewal spaces, as well as the contingent-based legal fees and commissions for leasing transactions.
For those employees who are retirement eligible or will become retirement eligible during the applicable vesting period under the terms of the Vesting Program, we accelerate equity-based compensation through the employee’s six-month retirement notification period or retirement eligibility date, respectively. 40 Table of Contents Revenue Recognition All current leases are classified as operating leases and rental income is recognized on a straight-line basis over the term of the lease (and expected bargain renewal terms or assumed exercise of early termination options) when collectability is reasonably assured.
Revenue Recognition All current leases are classified as operating leases and rental income is recognized on a straight-line basis over the term of the lease (and expected bargain renewal terms or assumed exercise of early termination options) when collectability is reasonably assured.
Year ended December 31, Change Cash Flows (dollars in thousands) 2022 2021 $ % Net cash provided by operating activities $ 387,931 $ 336,154 $ 51,777 15.4 % Net cash used in investing activities $ 447,524 $ 1,220,420 $ (772,896) (63.3) % Net cash provided by financing activities $ 63,186 $ 887,123 $ (823,937) (92.9) % Net cash provided by operating activities increased approximately $51.8 million to approximately $387.9 million for the year ended December 31, 2022, compared to approximately $336.2 million for the year ended December 31, 2021.
Year ended December 31, Change Cash Flows (dollars in thousands) 2023 2022 $ % Net cash provided by operating activities $ 391,092 $ 387,931 $ 3,161 0.8 % Net cash used in investing activities $ 320,346 $ 447,524 $ (127,178) (28.4) % Net cash provided by (used in) financing activities $ (75,667) $ 63,186 $ (138,853) (219.8) % Net cash provided by operating activities increased approximately $3.2 million to approximately $391.1 million for the year ended December 31, 2023, compared to approximately $387.9 million for the year ended December 31, 2022.
In addition, an increase in interest rates could decrease the amounts third parties are willing to pay for our assets, thereby limiting our ability to change our portfolio promptly in response to changes in economic or other conditions.
In addition, an increase in interest rates could decrease the amounts third parties are willing to pay for our assets, thereby limiting our ability to change our portfolio promptly in response to changes in economic or other conditions. 52 Table of Contents Off-balance Sheet Arrangements As of December 31, 2023, we had letters of credit related to development projects and certain other agreements of approximately $3.3 million.
This decrease in net cash used in investing activities was partially offset by an increase in cash paid for additions of land and building and improvements of approximately $72.2 million during the year ended December 31, 2022 compared to the year ended December 31, 2021.
Additionally, there was a decrease in cash paid for additions of land and building and improvements of approximately $3.8 million during the year ended December 31, 2023 compared to the year ended December 31, 2022.
On October 3, 2022, we achieved a 2022 public disclosure assessment score of “A” from the Global Real Estate Sustainability Benchmark (GRESB). The improved score triggered a sustainability-related interest rate adjustment for our unsecured credit facility and the Unsecured Term Loan A, the Unsecured Term Loan F, and the Unsecured Term Loan G.
On January 19, 2023, the sustainability-related interest rate adjustment for our Unsecured Term Loan H and Unsecured Term Loan I went into effect in connection with our 2022 public disclosure assessment score of “A” from the Global Real Estate Sustainability Benchmark (GRESB).
The increase was attributable to an increase of approximately $4.7 million related to other expense reimbursements which was primarily due to an increase in corresponding expenses. This increase was partially offset by a decrease in real estate taxes levied by taxing authorities of approximately $0.5 million.
The increase was also attributable to an increase of approximately $4.0 million in other expense reimbursements which was primarily due to an increase in corresponding expenses. Same Store Operating Expenses Same store operating expenses consist primarily of property operating expenses and real estate taxes and insurance.
We seek to (i) identify properties that offer relative value across all locations, industrial property types, and tenants through the principled application of our proprietary risk assessment model, (ii) operate our properties in an efficient, cost-effective manner, and (iii) capitalize our business appropriately given the characteristics of our assets.
Our platform is designed to (i) identify properties for acquisition that offer relative value across CBRE-EA Tier 1 industrial property 35 Table of Contents types and tenants through the principled application of our proprietary risk assessment model, (ii) provide growth through sophisticated industrial operation and an attractive opportunity set, and (iii) capitalize our business appropriately given the characteristics of our assets.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeWe have used derivative financial instruments to manage, or hedge, interest rate risks related to our borrowings, primarily through interest rate swaps. As of December 31, 2022, we had $1.2 billion of variable rate debt outstanding.
Biggest changeWe have used derivative financial instruments to manage, or hedge, interest rate risks related to our borrowings, primarily through interest rate swaps. As of December 31, 2023, we had $1.4 billion of variable rate debt.
In addition, an increase in interest rates could decrease the amounts third parties are willing to pay for our assets, thereby limiting our ability to change our portfolio promptly in response to changes in economic or other conditions.
In addition, an increase in interest rates could decrease the amounts third parties are willing to pay for our assets, thereby limiting our ability to change our portfolio promptly in response to changes in economic or other conditions.
As of December 31, 2022, all of our outstanding variable rate debt, with the exception of our unsecured credit facility which had a balance of $175.0 million, was fixed with interest rate swaps through maturity.
As of December 31, 2023, all of our outstanding variable rate debt, with the exception of our unsecured credit facility which had a balance of $402.0 million, was fixed with interest rate swaps through maturity.
If interest rates increased by 100 basis points and assuming we had an outstanding balance of $175.0 million on our unsecured credit facility for the year ended December 31, 2022, our interest expense would have increased by approximately $1.8 million for the year ended December 31, 2022.
If interest rates increased by 100 basis points and assuming we had an outstanding balance of $402.0 million on our unsecured credit facility for the year ended December 31, 2023, our interest expense would have increased by approximately $4.0 million for the year ended December 31, 2023.

Other STAG 10-K year-over-year comparisons