STAG INDUSTRIAL COMPLETES SALE OF 337,000 SQUARE FOOT BUILDING LOCATED IN NASHUA, NEW HAMPSHIRE

Rhea-AI Summary

STAG Industrial (NYSE:STAG) has announced the successful sale of a 337,391 square foot building in Nashua, New Hampshire for $67.0 million. The transaction, completed on January 31st, represents a Cash Capitalization Rate of 4.9%. The property, which was originally acquired in 2014 for approximately $11.7 million at an 8.2% Cash Capitalization Rate, generated a 20.8% unlevered internal rate of return over the holding period.

CEO Bill Crooker highlighted that the significant cap rate compression achieved from the sale demonstrates the operations team's effectiveness in delivering positive results, while positioning STAG to pursue accretive capital recycling opportunities in 2025.

Positive

• Sale price of $67.0 million represents significant profit from $11.7 million purchase price
• Strong 20.8% unlevered internal rate of return over holding period
• Successful cap rate compression from 8.2% to 4.9%

Negative

• Lower capitalization rate of 4.9% on sale compared to 8.2% at acquisition indicates lower yield on property value

News Market Reaction – STAG

+1.60%

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+1.60% News Effect

On the day this news was published, STAG gained 1.60%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

BOSTON, Feb. 3, 2025 /PRNewswire/ -- STAG Industrial, Inc. (the "Company") (NYSE:STAG) today announced it has completed the sale of a building in Nashua, New Hampshire on January 31^st for gross proceeds of $67.0 million, representing a Cash Capitalization Rate of 4.9%.

The 337,391 square foot building was acquired in 2014 at an 8.2% Cash Capitalization Rate for a purchase price of approximately $11.7 million. The sale resulted in a 20.8% unlevered internal rate of return over the hold period.

"The significant cap rate compression realized from the sale is a great indicator of the operations team's proficiency in delivering positive results," said Bill Crooker, Chief Executive Officer of the Company. "This transaction contributes to STAG's ability to accretively recycle capital as opportunities arise entering 2025."

About STAG Industrial, Inc.

STAG Industrial, Inc. is a real estate investment trust focused on the acquisition, ownership, and operation of industrial properties throughout the United States. As of September 30, 2024, the Company's portfolio consists of 578 buildings in 40 states with approximately 114.5 million rentable square feet.

For additional information, please visit the Company's website at www.stagindustrial.com. Please refer to the Company's most recent supplemental information package, available on the website, for the definition of Cash Capitalization Rate.

Forward-Looking Statements

This press release, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, are generally identifiable by use of the words "believe," "will," "expect," "intend," "anticipate," "estimate," "should," "project" or similar expressions. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company's control and which could materially affect actual results, performances or achievements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, the risk factors discussed in the Company's annual report on Form 10-K for the year ended December 31, 2023, as updated by the Company's quarterly reports on Form 10-Q. Accordingly, there is no assurance that the Company's expectations will be realized. Except as otherwise required by the federal securities laws, the Company disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

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SOURCE STAG Industrial, Inc.

FAQ

How much did STAG Industrial sell its Nashua, NH property for in 2025?

STAG Industrial sold its Nashua, NH property for $67.0 million on January 31st, 2025.

What was the internal rate of return for STAG's Nashua property investment?

The Nashua property investment generated a 20.8% unlevered internal rate of return over the holding period from 2014 to 2025.

What was the original purchase price of STAG's Nashua property?

STAG Industrial originally acquired the Nashua property in 2014 for approximately $11.7 million.

How did the capitalization rate change from purchase to sale for STAG's Nashua property?

The capitalization rate decreased from 8.2% at purchase in 2014 to 4.9% at sale in 2025, demonstrating significant cap rate compression.

What is the size of the STAG Industrial property sold in Nashua, NH?

The property sold in Nashua, NH is 337,391 square feet in size.