Stag Industrial, Inc.

Greetings and welcome to Stag Industrial Inc. First Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Steve Sharhose, Investor Relations, Thank you, Mr. Shahoz. You may begin.

Thank you. Welcome to Stagg Industrial's conference call covering the first quarter 2025 results. In addition to the press release distributed yesterday, we have posted an unaudited quarterly supplemental information presentation on the company's website at www.staggindustrial.com under the investor relations section. On today's call, the company's prepared remarks and answers to your questions will contain forward-looking statements as defined in the Private Securities Litigation Reform Act 1995. Forward-looking statements address matters that are subject to risks and uncertainties and may cause actual results to differ from those discussed today. Examples of forward-looking statements include forecasts of core FFO, same-store NOI, G&A, acquisition and disposition volumes, retention rates, and other guidance, leasing prospects, rent collections, industry and economic trends, and other matters. We encourage all listeners to review the more detailed discussion related to these forward-looking statements contained in the company's filings with the SEC and the definitions and reconciliations of non-GAAP measures contained in the supplemental information package available on the company's website. As a reminder, forward-looking statements represent management's estimates as of today. DAG Industrial assumes no obligation to update any forward-looking statements. On today's call, you'll hear from Bill Crooker, our Chief Executive Officer, and Matt Spenard, our Chief Financial Officer. Also here with us today is Mike Chase, our Chief Investment Officer, Steve Kimball, EVP of Real Estate Operations, who are available to answer questions specific to their areas of focus. I will now turn the call over to Bill.

Thank you, Steve. Good morning, everybody, and welcome to the first quarter earnings call for Stagg Industrial. We're pleased to have you join us and look forward to telling you about the first quarter 2025 results. We had a very strong start to the year, resulting in core FFO per share of 61 cents in the first quarter, exceeding our initial expectations. I'm happy to report that we have already leased 78.5% of the operating portfolio square feet we currently expect to lease in 2025, achieving cash leasing spreads of 25.1%. This level of leasing is at a similar pace to last year and consistent over the last few years. While tenant activity was healthy in Q1, the escalation of the global trade war continues to monopolize headlines. At this point, it is too early to quantify the potential impact of tariffs on our business. With the threat and implementation of tariffs, we have heard from some of our tenants that a key priority for them is diversification of their supply chains. We view this as a net positive to our portfolio, given our geographic diversity and focus on CBR REIT Tier 1 markets. Generally, we have witnessed some lengthening in lease gestation periods stemming from these macroeconomic events. We are still seeing plenty of tours for our vacant spaces, however those tours are taking longer to convert to signed LOIs. With that being said, tenants are continuing to make leasing decisions in light of current uncertainty. Through today, we have signed 3.6 million square feet of leases commencing in the second quarter, a million of which is new leasing. This is highlighted by a 500,000 square foot full building lease executed in the Savannah market. This lease was accomplished with zero downtime and produced a 25% cash leasing spread. The supply pipeline continues to contract with the national under-construction pipeline decreasing more than 16% sequentially since the fourth quarter. In the longer term, weaker economic growth may negatively impact warehouse space demand, but this would be partially offset by increased neoshoring and onshoring activity. SAG's portfolio would be a relative beneficiary compared to other industrial portfolios due to our geographic footprint. Moving to acquisitions, Volume for the first quarter totaled $43 million. This consisted of three buildings with cash and straight line cap rates of 6.8% and 7.0% respectively. In January, Stagg acquired a 162,000 square foot building located in Shakopee, Minnesota for $16.6 million at a cash cap rate of 6.5%. The building is 100% leased at rents approximately 40% below market to a single tenant with strong credit profile. This acquisition provided Stagg the opportunity to acquire a stabilized deal at an attractive yield and strong projected same-store NOI growth. In February, Stagg closed in a two-building portfolio totaling 232,000 square feet for $26.7 million and a cash cap rate of 6.9%. The portfolio is located in Buffalo Grove, Illinois, an infill sub-market of Chicago. The portfolio is a 100% lease to two tenants with a weighted average lease term of 3.3 years. The transaction provided an attractive combination of high yield and durable cash flow given the entrenched tenancy. In terms of dispositions this quarter, we sold one building in Nashua, New Hampshire for gross proceeds of $67 million, representing a cash cap rate of 4.9%. This disposition was a result of our team successfully repositioning the asset and ultimately selling it to a user. On the development front, we have approximately 2.5 million square feet of activity across 11 buildings in the US. Roughly 50% of that 2.5 million square feet is under construction and 16% is pre-leased. The remaining 50% has been delivered and is currently 51% leased. This includes a new lease totaling 102,000 square feet of warehouse and distribution space, which commenced at our building in Welford, South Carolina, on April 1st. With that, I will turn it over to Matt, who will cover our remaining results and updates to guidance.