10-K

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STAG INDUSTRIAL, INC. Table of Contents
INDEX TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K

ý	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2013
OR
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                to                .

Commission file number 1-34907

STAG INDUSTRIAL, INC.
(Exact name of registrant as specified in its charter)

Maryland (State or other jurisdiction of incorporation or organization)	27-3099608 (IRS Employer Identification No.)
One Federal Street, 23rd Floor Boston, Massachusetts (Address of principal executive offices)	02110 (Zip Code)

(617) 574-4777
(Registrant's telephone number, including area code)

Not Applicable
(Former name, former address and former fiscal year, if changed since last report)

           Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
Common Stock, $0.01 par value	New York Stock Exchange
9.0% Series A Cumulative Redeemable Preferred Stock, $0.01 par value	New York Stock Exchange
6.625% Series B Cumulative Redeemable Preferred Stock, $0.01 par value	New York Stock Exchange

           Securities registered pursuant to Section 12(g) of the Act: None

           Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ý    No o

           Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes o    No ý

           Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý    No o

           Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý    No o

           Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ý

           Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. Check one:

Large accelerated filer ý Accelerated filer o Non-accelerated filer o
(Do not check if a
smaller reporting company) Smaller reporting company o

           Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o    No ý

           The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant was approximately $836.9 million based on the closing price on the New York Stock Exchange as of June 28, 2013.

           Number of shares of the registrant's common stock outstanding as of February 24, 2014: 45,101,276

           Number of shares of 9.0% Series A Cumulative Redeemable Preferred Stock as of February 24, 2014: 2,760,000

           Number of shares of 6.625% Series B Cumulative Redeemable Preferred Stock as of February 24, 2014: 2,800,000

DOCUMENTS INCORPORATED BY REFERENCE

           Portions of the registrant's definitive Proxy Statement with respect to its 2014 Annual Meeting of Stockholders to be filed not later than 120 days after the end of the registrant's fiscal year are incorporated by reference into Part II, Item 5 and Part III, Items 10, 11, 12, 13 and 14 hereof as noted therein.

STAG INDUSTRIAL, INC.

Table of Contents

	PART I.
Item 1.	Business	2
Item 1A.	Risk Factors	8
Item 1B.	Unresolved Staff Comments	29
Item 2.	Properties	29
Item 3.	Legal Proceedings	38
Item 4.	Mine Safety Disclosures	38
	PART II.
Item 5.	Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	38
Item 6.	Selected Financial Data	41
Item 7.	Management's Discussion and Analysis of Financial Conditions and Results of Operations	43
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	65
Item 8.	Financial Statements and Supplementary Data	67
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	67
Item 9A.	Controls and Procedures	67
Item 9B.	Other Information	68
	PART III.
Item 10.	Directors, Executive Officers and Corporate Governance	69
Item 11.	Executive Compensation	69
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	69
Item 13.	Certain Relationships and Related Transactions, and Director Independence	69
Item 14.	Principal Accountant Fees and Services	69
	PART IV.
Item 15.	Exhibits and Financial Statement Schedules	70

Forward-Looking Statements

        This report contains "forward-looking statements" within the meaning of the safe harbor from civil liability provided for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act")). You can identify forward-looking statements by the use of words such as "anticipates," "believes," "estimates," "expects," "intends," "may," "plans," "projects," "seeks," "should," "will," and variations of such words or similar expressions. Forward-looking statements in this report include, among others, statements about our future financial condition, results of operations, our business strategy and objectives, including our acquisition strategy, occupancy and leasing rates and trends, and expected liquidity needs and sources (including capital expenditures and the ability to obtain financing or raise capital). Our forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by our forward-looking statements are reasonable, we can give no assurance that our plans, intentions, expectations, strategies or prospects will be attained or achieved and you should not place undue reliance on these forward-looking statements. Furthermore, actual results may differ materially from those described in the forward-looking statements and may be affected by a variety of risks and factors including, without limitation:

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the factors included in this report, including those set forth under the headings "Business," "Risk Factors," and "Management's Discussion and Analysis of Financial Condition and Results of Operations;"

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the competitive environment in which we operate;

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real estate risks, including fluctuations in real estate values and the general economic climate in local markets and competition for tenants in such markets;

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decreased rental rates or increasing vacancy rates;

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potential defaults on or non-renewal of leases by tenants;

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potential bankruptcy or insolvency of tenants;

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acquisition risks, including failure of such acquisitions to perform in accordance with projections;

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the timing of acquisitions and dispositions;

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potential natural disasters such as hurricanes;

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international, national, regional and local economic conditions;

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the general level of interest rates;

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potential changes in the law or governmental regulations that affect us and interpretations of those laws and regulations, including changes in real estate and zoning or real estate investment trust ("REIT") tax laws, and potential increases in real property tax rates;

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financing risks, including the risks that our cash flows from operations may be insufficient to meet required payments of principal and interest and we may be unable to refinance our existing debt upon maturity or obtain new financing on attractive terms or at all;

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lack of or insufficient amounts of insurance;

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our failure to complete acquisitions;

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our failure to successfully integrate acquired buildings;

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our ability to maintain our qualification as a REIT;

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litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; and

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possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by us.

Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict those events or how they may affect us. Except as required by law, we are not obligated to, and do not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

PART I.

Item 1.    Business

As used herein, "our company," "we," "our" and "us," refer to STAG Industrial, Inc. and our consolidated subsidiaries and partnerships except where the context otherwise requires. The combined financial information presented for periods on or prior to April 19, 2011 relate solely to the STAG Predecessor Group or our "predecessor business", our "predecessor" for accounting purposes. The combined financial statements for the periods after April 20, 2011 include the financial information of our company, STAG Industrial Operating Partnership, L.P. (our "operating partnership") and our subsidiaries.

Overview

        STAG Industrial, Inc. is an industrial real estate company focused on the acquisition, ownership and management of single-tenant net-leased industrial buildings throughout the United States. We were incorporated in Maryland on July 21, 2010 to continue and grow the single-tenant industrial business conducted by our predecessor business. We completed our initial public offering on April 20, 2011.

        As of December 31, 2013, we owned 209 buildings in 34 states with approximately 38.1 million rentable square feet, consisting of 142 warehouse/distribution properties, 47 light manufacturing properties and 20 flex/office properties. We also owned one vacant land parcel adjacent to one of our buildings. As of December 31, 2013, our buildings were 95.6% leased to 191 tenants, with no single tenant accounting for more than 2.8% of our total annualized rent and no single industry accounting for more than 12.6% of our total annualized rent. As used herein, the definition of annualized rent is the contractual monthly base rent as of December 31, 2013 multiplied by 12. If a tenant is in a free rent period as of December 31, 2013, the annualized rent is calculated based on the first contractual monthly base rent amount multiplied by 12.

        We own our interests in all of our properties and conduct substantially all of our business through our operating partnership. We serve as the sole member of the sole general partner of, and own approximately 86.65% of the outstanding limited partnership interests in, our operating partnership as of December 31, 2013. The remaining 13.35% limited partnership interests in our operating partnership are owned by certain of our executive officers, directors, certain of their affiliates and other outside investors. On April 20, 2011, we closed on our initial public offering ("IPO") of common stock and completed our formation transactions (the "formation transactions").

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        We target the acquisition of individual Class B, single-tenant industrial properties predominantly in secondary markets throughout the United States with purchase prices ranging from $5 million to $50 million. We believe, due to observed market inefficiencies, that our focus on owning and expanding a portfolio of such properties will, when compared to other real estate portfolios, generate returns for our stockholders that are attractive in light of the risks associated with these returns because we believe:

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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.

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Investment yields on single-tenant individual property acquisitions are typically greater than investment yields on portfolio acquisitions. With appropriate asset diversification, individual asset risk can be mitigated across an aggregated portfolio.

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Class B industrial properties tend to have higher current returns and lower volatility than Class A industrial properties.

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Secondary markets generally have less occupancy and rental rate volatility than primary markets.

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Other institutional industrial real estate buyers tend to focus on larger properties in select primary markets, resulting in our typical competitors being local investors who often do not have ready access to debt or equity capital.

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Tenants in our target properties tend to manage their properties directly, which allows us to grow our portfolio without substantially increasing the size of our asset management infrastructure.

For a description of what we consider to be Class A and Class B properties, see "Item 2. Properties" below.

        Reflecting the market inefficiencies we have observed, our target properties are generally leased to:

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investment grade credit tenants on shorter term leases (less than four to six years);

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sub-investment grade credit tenants on longer term leases (greater than four to six years); or

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a variable combination of the above.

        We believe the market inefficiently prices our target properties because investors typically either underestimate the probability of tenant retention beyond the primary lease term or overestimate the expected cost of tenant default. Further, we believe our relationships with a national network of commercial real estate brokers and our underwriting processes, utilizing our proprietary model, allow us to acquire properties at a discount to their intrinsic values, where intrinsic values are determined by the properties' future cash flows. We elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the "Code"), beginning with our taxable year ended December 31, 2011 and intend to continue to qualify as REIT. So long as we qualify as a REIT, we generally will not be subject to federal income taxes to the extent we currently distribute our income to our stockholders and maintain our qualification as a REIT.

Competitive Strengths

        We believe that our investment strategy and operating model distinguish us from other owners, operators and acquirers of industrial real estate in a number of ways, including:

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Proven Growth Profile:  Since January 1, 2013, we have acquired 39 buildings representing approximately 9.0 million square feet for a total cost of approximately $346 million. Since

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January 1, 2012, we have acquired 109 buildings representing approximately 21.9 million square feet for a total cost of approximately $773 million. Since the closing of our IPO offering on April 20, 2011, we have acquired 124 buildings representing approximately 25.3 million square feet for a total cost of approximately $898 million.

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Established Intermediary Relationships:  We believe we have developed a reputation as a credible and active buyer of single-tenant industrial real estate, which provides us access to significant acquisition opportunities that may not be available to our competitors.

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Scalable Platform:  Our focus on net lease properties ensures that our current staff of 44 employees as of December 31, 2013 (with incremental additions of employees) is sufficient to support our continued growth.

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Expertise in Underwriting Single-Tenant Properties:  We have developed a proprietary underwriting process that integrates real estate and corporate credit analysis to project the future cash flows of potential acquisitions. We believe that our expertise and procedures in assessing tenant retention and vacancy costs are advantages in identifying, underwriting and closing on attractive acquisition opportunities.

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Stable and Predictable Cash Flows:  Our portfolio is diversified by tenant, industry and geography, which tends to reduce risk and earnings volatility. As of December 31, 2013, no single tenant accounted for more than 2.8% of our total annualized rent; no single industry represented more than 12.6% of our total annualized rent; and no single state was the site for properties generating more than 8.9% of our total annualized rent. Cash flow consistency across our portfolio is enhanced by our weighted (by rental revenue per square foot) average in-place remaining lease term of approximately 4.8 years as of December 31, 2013, low costs for tenant improvements and leasing commissions and low capital expenditures.

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Experienced Management Team:  The five senior members of our management team have significant real estate industry experience, averaging approximately 27 years, with four members having previous public REIT or public real estate company experience.

Our Strategies

        Our primary business objectives are to own and operate a balanced and diversified portfolio of single-tenant industrial properties that maximizes cash flows available for distribution to our stockholders, and to enhance stockholder value over time by achieving sustainable long-term growth in funds from operations per share through the following strategies:

Investment Strategy

        Our primary investment strategy is to acquire individual Class B, single-tenant industrial properties predominantly in secondary markets throughout the United States through third-party purchases and structured sale-leasebacks featuring high initial yields and strong ongoing cash-on-cash returns. Where appropriate potential returns present themselves, we also may acquire assets in primary markets.

Growth Strategy

        External Growth through Acquisitions:    Our target acquisitions are predominantly in the $5 million to $50 million range. The competition for our target assets is primarily local investors who are not likely to have ready access to debt or equity capital. We focus our acquisition activities on our core property types: warehouse/distribution facilities and light manufacturing facilities. From time to time, if an attractive opportunity presents itself, we may consider portfolio acquisitions. As of December 31, 2013, we were evaluating approximately $728 million of specific potential acquisitions that we have identified as warranting further investment consideration after an initial review.

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        Internal Growth through Asset Management:    Our asset management team utilizes our tenant relationships and leasing expertise to maintain occupancy and increase rental rates. It also collaborates with our internal credit function to actively monitor the credit profile of each of our tenants on an ongoing basis. The team's efforts have resulted in our achieving a tenant retention rate of 59% for those tenants whose leases were scheduled to expire in 2013 and 84% for those tenants whose leases were scheduled to expire in 2012. The 2013 non-renewal total is dwarfed by the approximately 1.4 million square feet of new leases executed by us for previously vacant space. As of December 31, 2013, our portfolio had approximately 1.7 million square feet, or 4.4% of our total rentable square feet, available for lease, compared to 1.4 million square feet or 4.9% as of December 31, 2012.

Underwriting Strategy

        We blend fundamental real estate analysis with corporate credit analysis in our proprietary model to make a probabilistic assessment of cash flows that will be realized in future periods. For each asset, our analysis focuses on:

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Real Estate.  We evaluate the physical real estate within the context of the market (and submarket) in which it is located and the prospect for re-tenanting the building if it becomes vacant by estimating the following:

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market rent for this building in this location;

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downtime to re-lease and related carrying costs;

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cost (tenant improvements, leasing commissions and required capital expenditures) to achieve the projected market rent within the projected downtime; and

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single-tenant or multi-tenant reuse.

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Deal Parameters.  We evaluate the tenant and landlord obligations contained within the existing or proposed lease and other transaction documents.

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Tenant Credit.  We apply fundamental credit analysis to evaluate the tenant's credit profile by focusing on the tenant's current and historical financial status, general business plan, operating risks, capital sources and earnings expectations. We also analyze Securities and Exchange Commission ("SEC") filings, press releases, management calls, rating agency reports and other public information. In the case of a private, non-rated firm, we will obtain financial information from the tenant and calculate common measures of credit strength such as debt-to-EBITDA and coverage ratios. For publicly rated firms, we use the credit information issued by Moody's Investor Services, Standard & Poor's, and Fitch Ratings. Using this data and publicly available bond default studies of comparable tenant credits, we estimate the probability of future rent loss due to tenant default.

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Tenant Retention.  We assess the tenant's use of the property and the degree to which the property is central to the tenant's ongoing operations, the tenant's potential cost to relocate, the supply/demand dynamic in the relevant submarket and the availability of suitable alternative properties. We believe tenant retention tends to be greater for properties that are critical to the tenants' businesses.

Financing Strategy

        Our main focus is to preserve a flexible capital structure. We will utilize the capital markets through secondary equity offerings including but not limited to "at the market" equity offerings while also obtaining primarily unsecured debt, which is more efficient than secured debt given our granular acquisition strategy.

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Regulation

General

        Our properties are subject to various laws, ordinances and regulations, including regulations relating to common areas and fire and safety requirements. We believe that we and/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. Under the ADA, all public accommodations must meet 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. Although we believe that the properties in our portfolio in the aggregate substantially comply with current requirements of the ADA, and we have not received any notice for correction from any regulatory agency, we have not conducted a comprehensive audit or investigation of all of our properties to determine whether we are in compliance and therefore we may own properties that are not in compliance with the ADA.

        ADA compliance is dependent upon the tenant's specific use of the property, and as the use of a property changes or improvements to existing spaces are made, we will take steps to ensure compliance. Noncompliance with the ADA could result in additional costs to attain compliance, imposition of fines by the U.S. government or an award of damages or attorney's fees to private litigants. The obligation to make readily achievable accommodations is an ongoing one, and we will continue to assess our properties and to make alterations to achieve compliance as necessary.

Environmental Matters

        Our properties are subject to various federal, state and local environmental laws. Under these laws, courts and government agencies have the authority to require us, as owner of a contaminated property, to clean up the property, even if we did not know of or were not responsible for the contamination. These laws also apply to persons who owned a property at the time it became contaminated, and therefore it is possible we could incur these costs even after we sell some of our properties. 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. Under applicable environmental laws, courts and government agencies also have the authority to require that a person who sent waste to a waste disposal facility, such as a landfill or an incinerator, pay for the clean-up of that facility if it becomes contaminated and threatens human health or the environment. We invest in properties historically used for industrial, light manufacturing and commercial purposes. Certain of our properties are on or are adjacent to or near other properties upon which others, including former owners or tenants of our properties have engaged, or may in the future engage, in activities that may generate or release petroleum products or other hazardous or toxic substances.

        Environmental laws in the United States also require that owners or operators 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, including removal or other abatement, in the event that asbestos is disturbed during building renovation or demolition. These laws may impose fines and penalties on building owners or operators who fail to comply with these requirements and may allow third parties to seek recovery from owners or operators for personal injury associated with exposure to asbestos. According to Phase I environmental assessments prepared at the time of acquisition, 17 of our buildings are known to have asbestos containing materials. No immediate action was recommended to address these instances and, as a result, we do not currently plan to take

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any actions to address these instances. Additionally, 31 of our buildings are suspected of having asbestos containing materials due to the age of the building and observed conditions. No immediate action was recommended to address these instances and, as a result, we do not currently plan to take any actions to address these instances. In the event of a building renovation or demolition, a comprehensive asbestos inspection would be performed to determine proper handling and disposal of any asbestos containing materials.

        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. 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.

        We could be responsible for any of the costs discussed above. The costs to clean up a contaminated property, to defend against a claim, or to comply with environmental laws could be material and could adversely affect the funds available for distribution to our shareholders. All of our properties were subject to a Phase I or similar environmental assessment by independent environmental consultants at the time of acquisition. We generally expect to continue to obtain a Phase I or similar environmental assessment by independent environmental consultants on each property prior to acquiring it. However, these environmental assessments may not reveal all environmental costs that might have a material adverse effect on our business, assets, results of operations or liquidity and may not identify all potential environmental liabilities.

        At the time of acquisition, we add each property to our portfolio environmental insurance policy that provides coverage for potential environmental liabilities, subject to the policy's coverage conditions and limitations.

        We can make no assurances that future laws, ordinances or regulations will not impose material environmental liabilities on us, or the current environmental condition of our properties will not be affected by tenants, 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.

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. Generally, we do not carry insurance for certain losses, including, but not limited to, losses caused by floods (unless the property is located in a flood plain), earthquakes, acts of war, acts of terrorism or riots. We believe the policy specifications and insured limits are appropriate and adequate given the relative risk of loss, the cost of the coverage and standard industry practice; however, our insurance coverage may not be sufficient to fully cover all of our losses. We carry employment practices liability insurance that covers us against claims by employees, former employee or potential employees for various employment related matters including wrongful termination, discrimination, sexual harassment in the workplace, hostile work environment, and retaliation, subject to the policy's coverage conditions and limitations. We also carry comprehensive cyber liability insurance coverage that covers us against claims related to certain first party and third party losses including data restoration costs, crisis management expenses, credit monitoring costs, failure to implement and maintain reasonable security procedures, invasion of customer's privacy and negligence, subject to the policy's coverage conditions and limitations.

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Competition

        In acquiring our target properties, we compete with other public industrial property sector REITs, single-tenant REITs, income oriented non-traded REITs, private real estate fund managers and local real estate investors and developers. Local real estate investors and developers historically have represented our predominant competition for deals but they typically do not have ready access to credit. 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.

Employees

        As of December 31, 2013, we employed 44 full-time employees. We believe that our relationships with our employees are good. None of our employees are represented by a labor union.

Our Corporate Information

        Effective January 27, 2014, our principal executive offices are located at One Federal Street, 23^rd Floor, Boston, Massachusetts 02110. Prior to January 27, 2014, our principal executive offices were located at 99 High Street, 28th Floor, Boston, Massachusetts 02110. Our telephone number is (617) 574-4777. Our website is www.stagindustrial.com. The information found on, or otherwise accessible through, our website is not incorporated into, and does not form a part of, this report or any other report or document we file with or furnish to the SEC.

How to Obtain Our SEC Filings

        All reports we file with the SEC are available free of charge via EDGAR through the SEC website at www.sec.gov. In addition, the public may read and copy materials we file with the SEC at the SEC's public reference room located at 100 F Street, N.E., Washington, D.C. 20549. Information on the operation of the public reference room can be obtained by calling the SEC at 1-800-SEC-0330. 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. The information found on, or otherwise accessible through, our website is not incorporated into, and does not form a part of, this report or any other report or document we file with or furnish to the SEC.

Item 1A.    Risk Factors

        The following risk factors and other information included in this Annual Report on Form 10-K 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. If any of the following risks occur, our business, financial condition, operating results and cash flows could be materially adversely affected.

Risks Related to Our Business and Operations

Our investments are concentrated in the industrial real estate sector, and our business would be adversely affected by an economic downturn in that sector.

        As of December 31, 2013, all of our 209 buildings were industrial properties, including 142 warehouse/distribution facilities, 47 light manufacturing facilities and 20 flex/office facilities. This concentration may expose us to the risk of economic downturns in the industrial real estate sector to a greater extent than if our properties were more diversified across other sectors of the real estate industry.

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Adverse economic conditions will negatively affect our returns and profitability.

        Our operating results may be affected by market and economic challenges, including the current global economic credit environment and economic uncertainties, which may result from a continued or exacerbated general economic slowdown experienced by the nation as a whole or by the local economies where our properties may be located, or by the real estate industry, including the following:

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poor economic conditions may result in tenant defaults under leases;

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re-leasing may require concessions or reduced rental rates under the new leases due to reduced demand;

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adverse capital and credit market conditions may restrict our operating activities; and

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constricted access to credit may result in tenant defaults, non-renewals under leases or inability of potential buyers to acquire properties held for sale.

        Also, to the extent we purchase real estate in an unstable market, we are subject to the risk that if the real estate market ceases to attract the same level of capital investment in the future that it attracts at the time of our purchases, or the number of companies seeking to acquire properties decreases, the value of our investments may not appreciate or may decrease significantly below the amount we pay for these investments. The length and severity of any economic slowdown or downturn cannot be predicted. Our operations could be negatively affected to the extent that an economic slowdown or downturn is prolonged or becomes more severe.

Substantial international, national and local government deficits and the weakened financial condition of these governments may adversely impact our business, financial condition and results of operations.

        The values of, and the cash flows from, the properties we own may be affected by developments in global, national and local economies. As a result of the recent global economic crisis and the significant government interventions, federal, state and local governments have incurred record deficits and assumed or guaranteed liabilities of private financial institutions or other private entities. These increased budget deficits and the weakened financial condition of federal, state and local governments 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, which may directly or indirectly adversely affect our business, financial condition and results of operations.

        There can be no assurance that the global market disruptions, including the increased cost of funding for certain governments and financial institutions, will improve, nor can there be any assurance that future assistance packages will be available or, even if provided, will be sufficient to stabilize the affected countries and markets. Risks and ongoing concerns about the global economic crisis could have a detrimental impact on economic recovery, financial markets and institutions and the availability of debt financing, which may directly or indirectly adversely affect our business, financial condition and results of operations.

Events or occurrences that affect areas in which our properties are geographically concentrated may impact financial results.

        In addition to general, regional, national and international economic conditions, our operating performance is impacted by the economic conditions of the specific markets in which we have concentrations of properties. We have holdings in the following states, which, as of December 31, 2013, accounted for the percentage of our total annualized rent indicated: Illinois (8.9%); North Carolina (8.7%); Ohio (8.3%); Michigan (7.2%); and Indiana (6.9%). Our operating performance could be adversely affected if conditions become less favorable in any of the states or regions in which we have a concentration of properties.

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We are subject to industry concentrations that make us susceptible to adverse events with respect to certain industries.

        We are subject to certain industry concentrations with respect to our properties, including the following, which, as of December 31, 2013, accounted for the percentage of our total annualized rent indicated: Automotive (12.5%); Containers & Packaging (11.1%); Industrial Equipment, Components & Metals (10.6%); Air Freight and Logistics (9.3%); and Food and Beverages (7.7%). Such industries are subject to specific risks that could result in downturns within the industries. Any downturn in one or more of these industries, or in any other industry in which we may have a significant concentration now or in the future, could adversely affect our tenants who are involved in such industries. If any of these tenants is unable to withstand such downturn or is otherwise unable to compete effectively in its business, it may be forced to declare bankruptcy, fail to meet its rental obligations, seek rental concessions or be unable to enter into new leases, which could materially and adversely affect us.

We are subject to risks involved in single-tenant leases, and the default by one or more tenants could materially and adversely affect us.

        Any of our tenants may experience a downturn in its business at any time that may significantly weaken its financial condition or cause its failure. As a result, such a tenant may decline to extend or renew its lease upon expiration, fail to make rental payments when due or declare bankruptcy. The default, financial distress or bankruptcy of a single tenant could cause interruptions in the receipt of rental revenue and/or result in a vacancy, which is likely to result in the complete reduction in the operating cash flows generated by the property leased to that tenant and may decrease the value of that property. In addition, a majority of our leases generally require the tenant to pay all or substantially all of the operating expenses normally associated with the ownership of the property, such as utilities, real estate taxes, insurance and routine maintenance. Following a vacancy at a single-tenant property, we will be responsible for all of the operating costs at such property until it can be re-let, if at all.

If our tenants are unable to obtain financing necessary to continue to operate their businesses and pay us rent, we could be materially and adversely affected.

        Many of our tenants rely on external sources of financing to operate their businesses. The U.S. financial and credit markets may continue to experience liquidity disruptions, resulting in the unavailability of financing for many businesses. If our tenants are unable to obtain financing necessary to continue to operate their businesses, they may be unable to meet their rent obligations to us or enter into new leases with us or be forced to declare bankruptcy and reject our leases, which could materially and adversely affect us.

We depend on key personnel, the loss of their full service could adversely affect us.

        Our success depends to a significant degree upon the continued contributions of certain key personnel including, but not limited to, our executive officers, whose continued service is not guaranteed, and each of whom would be difficult to replace. While we have entered into employment contracts with our executive officers, they may nevertheless cease to provide services to us at any time. If any of our key personnel were to cease employment with us, our operating results could suffer. Our ability to retain our management group or to attract suitable replacements should any members of the management group leave is dependent on the competitive nature of the employment market. The loss of services from key members of the management group or a limitation in their availability could adversely impact our financial condition and cash flows. Further, such a loss could be negatively perceived in the capital markets. We have not obtained and do not expect to obtain key man life insurance on any of our key personnel except for Mr. Benjamin S. Butcher, the founder of our

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predecessor business and our Chief Executive Officer, President and Chairman. The policy has limits in the amount of $5.0 million and covers us in the event of Mr. Butcher's death.

        We also believe that, as we expand, our future success depends, in large part, upon our ability to hire and retain highly skilled managerial, investment, financing, operational and marketing personnel. Competition for such personnel is intense, and we cannot assure you that we will be successful in attracting and retaining such skilled personnel.

Our growth will depend upon future acquisitions of properties, and we may be unable to consummate acquisitions on advantageous terms or acquisitions may not perform as we expect.

        We acquire and intend to continue to acquire primarily generic warehouse/distribution properties and light manufacturing properties. The acquisition of properties entails various risks, including the risks that our investments may not perform as we expect. Further, we face competition for attractive investment opportunities from other well-capitalized real estate investors, including both publicly-traded REITs and private institutional investment funds, and these competitors may have greater financial resources than we and a greater ability to borrow funds to acquire properties. This competition will increase as investments in real estate become increasingly attractive relative to other forms of investment. As a result of competition, we may be unable to acquire additional properties for the purchase price we desire. In addition, we expect to finance future acquisitions through a combination of secured and unsecured borrowings, proceeds from equity or debt offerings by us or our operating partnership or its subsidiaries and proceeds from property contributions and divestitures which may not be available and which could adversely affect our cash flows. Any of the above risks could adversely affect our financial condition, results of operations, cash flows and ability to pay distributions on, and the market price of, our securities.

We may be unable to source "limited marketing" deal flow in the future, which could adversely affect our ability to locate and acquire additional properties at attractive prices.

        A key component of our growth strategy is to continue to acquire additional industrial real estate assets. Many of the acquisitions we sourced, based on total purchase price, were acquired before they were widely marketed by real estate brokers, or "limited marketing" transactions. Properties that are acquired by "limited marketing" transactions are typically more attractive to us as a purchaser because of the absence of a formal sales process, which could lead to higher prices. If we cannot obtain "limited marketing" deal flow in the future, our ability to locate and acquire additional properties at attractive prices could be somewhat adversely affected.

The cash available for distribution to stockholders may not be sufficient to pay dividends at expected levels, nor can we assure you of our ability to make distributions in the future.

        Distributions will be authorized and determined by our board of directors in its sole discretion from time to time and will depend upon a number of factors, including:

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cash available for distribution;

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our results of operations;

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our financial condition, especially in relation to the anticipated future capital needs of our properties;

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the distribution requirements for REITs under the Code;

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our operating expenses; and

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other factors our board of directors deems relevant.

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Consequently, we may not continue our current level of distributions to stockholders, and our distribution levels may fluctuate.

        In addition, some of our distributions may include a return of capital. To the extent that we make distributions in excess of our current and accumulated earnings and profits, such distributions would generally be considered a return of capital for federal income tax purposes to the extent of the holder's adjusted tax basis in its shares. A return of capital is not taxable, but it has the effect of reducing the holder's adjusted tax basis in its investment. To the extent that distributions exceed the adjusted tax basis of a holder's shares, they will be treated as gain from the sale or exchange of such stock. If we borrow to fund distributions, our future interest costs would increase, thereby reducing our earnings and cash available for distribution from what they otherwise would have been.

We have owned our properties for a limited time, and we may not be aware of characteristics or deficiencies involving any one or all of them.

        The majority of our properties have been under management for less than five years. In addition, since the completion of our initial public offering, we have acquired an additional 124 buildings totaling approximately 25.3 million rentable square feet. These properties may have characteristics or deficiencies unknown to us that could affect their valuation or revenue potential and such properties may not ultimately perform up to our expectations. We cannot assure you that the operating performance of the properties will not decline under our management.

We face risks associated with security breaches through cyber attacks, cyber intrusions or otherwise, as well as other significant disruptions of our information technology (IT) networks and related systems.

        We face risks associated with security breaches, whether through cyber attacks or cyber intrusions over the Internet, malware, computer viruses, attachments to e-mails, persons inside our organization or persons with access to systems inside our organization, and other significant disruptions of our IT networks and related systems. The risk of a security breach or disruption, particularly through cyber attack or cyber intrusion, including by computer hackers, foreign governments and cyber terrorists, has generally increased as the number, intensity and sophistication of attempted attacks and intrusions from around the world have increased. Our IT networks and related systems are essential to the operation of our business and our ability to perform day-to-day operations and, in some cases, may be critical to the operations of certain of our tenants. Although we make efforts to maintain the security and integrity of these types of IT networks and related systems, and we have implemented various measures to manage the risk of a security breach or disruption, there can be no assurance that our security efforts and measures will be effective or that attempted security breaches or disruptions would not be successful or damaging. Even the most well protected information, networks, systems and facilities remain potentially vulnerable because the techniques used in such attempted security breaches evolve and generally are not recognized until launched against a target, and in some cases are designed to not be detected and, in fact, may not be detected. Accordingly, we may be unable to anticipate these techniques or to implement adequate security barriers or other preventative measures, and thus it is impossible for us to entirely mitigate this risk. A security breach or other significant disruption involving our IT networks and related systems could disrupt the proper functioning of our networks and systems; result in misstated financial reports, violations of loan covenants and/or missed reporting deadlines; result in our inability to properly monitor our compliance with the rules and regulations regarding our qualification as a REIT; result in the unauthorized access to, and destruction, loss, theft, misappropriation or release of proprietary, confidential, sensitive or otherwise valuable information of ours or others, which others could use to compete against us or for disruptive, destructive or otherwise harmful purposes and outcomes; require significant management attention and resources to remedy any damages that result; subject us to claims for breach of contract, damages, credits, penalties or termination of leases or other agreements; or damage our reputation among our tenants and investors generally.

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Risks Related to Our Organization and Structure

Certain of our officers and directors have duties to Fund II, which may create conflicts of interest and may impede business decisions that could benefit our stockholders.

        Certain of our executive officers and one of our directors also serve as officers or on the board of managers of STAG Investments II, LLC ("Fund II"), a private equity real estate fund that continues to operate as a private, fully invested fund. Our officers and director may have conflicting duties because they have a duty to both us and to Fund II, which retained ownership of certain of its properties and continues as a private, fully-invested fund until liquidated. Prior to the completion of the formation transactions, Fund II was fully invested and, as a result, will not be making any additional investments in income properties. However, some Fund II properties may be competitive with our current or future properties. It is possible that the officers' and board members' fiduciary duty to Fund II, including, without limitation, their interests in Fund II, will conflict with what will be in the best interests of our company.

Our fiduciary duties as sole member of the general partner of our operating partnership could create conflicts of interest, which may impede business decisions that could benefit our stockholders.

        We, as the sole member of the general partner of our operating partnership, have fiduciary duties to the other limited partners in our operating partnership, the discharge of which may conflict with the interests of our stockholders. The limited partners of our operating partnership have agreed that, in the event of a conflict in the fiduciary duties owed by us to our stockholders and, in our capacity as indirect general partner of our operating partnership, to such limited partners, we are under no obligation to give priority to the interests of such limited partners. In addition, those persons holding common units will have the right to vote on certain amendments to the operating partnership agreement (which require approval by a majority in interest of the limited partners, including us) and individually to approve certain amendments that would adversely affect their rights. These voting rights may be exercised in a manner that conflicts with the interests 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 adversely affects their rights without their consent, even though such modification might be in the best interest of our stockholders.

        In addition, conflicts may arise when the interests of our stockholders and the limited partners of our operating partnership diverge, particularly in circumstances in which there may be an adverse tax consequence to the limited partners. Tax consequences to holders of common units upon a sale or refinancing of our properties may cause the interests of our senior management to differ from your own. As a result of unrealized built-in gain attributable to contributed property at the time of contribution, some holders of common units, including our principals, may suffer different and more adverse tax consequences than holders of our securities upon the sale or refinancing of the properties owned by our operating partnership, including disproportionately greater allocations of items of taxable income and gain upon a realization event. As those holders will not receive a correspondingly greater distribution of cash proceeds, they may have different objectives regarding the appropriate pricing, timing and other material terms of any sale or refinancing of certain properties, or whether to sell or refinance such properties at all.

        We may experience conflicts of interest with several members of our senior management team and board who have or may become limited partners in our operating partnership through the receipt of common units or long-term incentive plan units in our operating partnership ("LTIP units") granted under our 2011 Equity Incentive Plan.

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Our growth depends on external sources of capital which are outside of our control, which may affect our ability to seize strategic opportunities, satisfy debt obligations and make distributions to our stockholders.

        In order to maintain our qualification as a REIT, we are generally required under the Code to distribute annually at least 90% of our net taxable income, determined without regard to the dividends paid deduction and excluding any net capital gain. In addition, we will be subject to income tax at regular corporate rates to the extent that we distribute less than 100% of our net taxable income, including any net capital gains. Because of these distribution requirements, we may not be able to fund future capital needs, including any necessary acquisition financing, from operating cash flow. Consequently, we may rely on third-party sources to fund our capital needs. We may not be able to obtain financing on favorable terms or at all. Any additional debt we incur will increase our leverage. Our access to third-party sources of capital depends, in part, on:

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general market conditions;

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the market's perception of our growth potential;

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our current debt levels;

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our current and expected future earnings;

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our cash flow and cash dividends; and

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the market price per share of our common stock.

        If we cannot obtain capital from third-party sources, we may not be able to acquire properties when strategic opportunities exist, meet the capital and operating needs of our existing properties or satisfy our debt service obligations. Further, in order to meet the REIT distribution requirements and maintain our REIT status and to avoid the payment of income and excise taxes, we may need to borrow funds on a short-term basis even if the then-prevailing market conditions are not favorable for these borrowings. These short-term borrowing needs could result from differences in timing between the actual receipt of cash and inclusion of income for federal income tax purposes or the effect of non-deductible capital expenditures, the creation of reserves, certain restrictions on distributions under loan documents or required debt or amortization payments.

        To the extent that capital is not available to acquire properties, profits may not be realized or their realization may be delayed, which could result in an earnings stream that is less predictable than some of our competitors and result in us not meeting our projected earnings and distributable cash flow levels in a particular reporting period. Failure to meet our projected earnings and distributable cash flow levels in a particular reporting period could have an adverse effect on our financial condition and on the market price of our stock.

STAG Predecessor Group and STAG Industrial, Inc. have experienced historical net losses and accumulated deficits after depreciation and amortization and we may experience future losses.

        STAG Industrial, Inc. had historical net losses attributable to common stockholders for the years ended December 31, 2013 and December 31, 2012 of $4.2 million and $12.8 million, and for the period from April 20, 2011 to December 31, 2011 of $6.8 million, respectively. STAG Predecessor Group had historical net losses of $0.2 million for the period from January 1, 2011 to April 19, 2011. We would have been profitable had the net losses excluded the non-cash impacts of depreciation and amortization. STAG Predecessor Group had historical accumulated deficits after effects of depreciation and amortization of $14.0 million as of April 19, 2011. There can be no assurance that we will not incur net losses in the future after excluding the effects of depreciation and amortization, which could adversely affect our ability to service our indebtedness and our ability to pay dividends or make distributions, any of which could adversely affect the trading price of our stock.

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We are subject to financial reporting and other requirements for which our accounting, internal audit and other management systems and resources may not be adequately prepared and we may not be able to accurately report our financial results.

        We are subject to reporting and other obligations under the Exchange Act, including the requirements of Section 404 of the Sarbanes-Oxley Act of 2002. Section 404 requires annual management assessments of the effectiveness of our internal controls over financial reporting and a report by our independent registered public accounting firm addressing these assessments. These reporting and other obligations place significant demands on our management, administrative, operational, internal audit and accounting resources and cause us to incur significant expenses. We may need to upgrade our systems or create new systems; implement additional financial and management controls, reporting systems and procedures; expand our internal audit function; and hire additional accounting, internal audit and finance staff. Any failure to maintain effective internal controls could have a material adverse effect on our business, operating results and price of our securities.

Our charter, the partnership agreement of our operating partnership and Maryland law contain provisions that may delay or prevent a change of control transaction.

        Our charter contains 9.8% ownership limits.    Our charter, subject to certain exceptions, authorizes our directors to take such actions as are necessary and desirable to limit any person to actual or constructive ownership of no more than 9.8% in value or in number of shares, whichever is more restrictive, of the outstanding shares of our capital stock and no more than 9.8% in value or in number of shares, whichever is more restrictive, of the outstanding shares of our common stock. In addition, the articles supplementary for our 9.0% Series A Cumulative Redeemable Preferred Stock, par value $0.01 per share (the "series A preferred stock") and our 6.625% Series B Cumulative Redeemable Preferred Stock, par value $0.01 per share (the "series B preferred stock"), provide that generally no person may own, or be deemed to own by virtue of the attribution provisions of the Code, either more than 9.8% in value or in number of shares, whichever is more restrictive, of our outstanding series A preferred stock or series B preferred stock. Our board of directors, in its sole discretion, may exempt a proposed transferee from the ownership limits. However, our board of directors may not grant an exemption from the ownership limits to any proposed transferee whose ownership, direct or indirect, of more than 9.8% of the value or number of our outstanding shares of our common stock, our series A preferred stock or our series B preferred stock could jeopardize our status as a REIT. The ownership limits contained in our charter and the restrictions on ownership of our common stock may delay or prevent a transaction or a change of control that might be in the best interest of our stockholders.

        Our board of directors may create and issue a class or series of preferred stock without stockholder approval.     Subject to the rights of holders of series A preferred stock and series B preferred stock to approve the classification or issuance of any class or series of stock ranking senior to the series A preferred stock or our series B preferred stock, our board of directors is empowered under our charter to amend our charter to increase or decrease the aggregate number of shares of our common stock or the number of shares of stock of any class or series that we have authority to issue, to designate and issue from time to time one or more classes or series of preferred stock and to classify or reclassify any unissued shares of our common stock or preferred stock without stockholder approval. Subject to the rights of holders of series A preferred stock and the series B preferred stock discussed above, our board of directors may determine the relative rights, preferences and privileges of any class or series of preferred stock issued. The issuance of preferred stock could also have the effect of delaying or preventing a change of control transaction that might otherwise be in the best interests of our stockholders.

        Certain provisions in the partnership agreement for our operating partnership may delay or prevent unsolicited acquisitions of us.    Provisions in the partnership agreement for our operating partnership may delay or make more difficult unsolicited acquisitions of us or changes in our control. These

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provisions could discourage third parties from making proposals involving an unsolicited acquisition of us or change of our control, although some stockholders might consider such proposals, if made, desirable. These provisions include, among others:

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redemption rights of qualifying parties;

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transfer restrictions on our common units;

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the ability of the general partner in some cases to amend the partnership agreement without the consent of the limited partners; and

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the right of the limited partners to consent to transfers of the general partnership interest and mergers under specified circumstances.

        Any potential change of control transaction may be further limited as a result of provisions of the partnership unit designation for the LTIP units, which require us to preserve the rights of LTIP unit holders and may restrict us from amending the partnership agreement for our operating partnership in a manner that would have an adverse effect on the rights of LTIP unit holders.

        Certain provisions of Maryland law could inhibit changes in control.    Certain provisions of the Maryland General Corporation Law ("MGCL") may have the effect of inhibiting a third party from making a proposal to acquire us or impeding a change of control under circumstances that might be in the best interest of our stockholders, including:

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"business combination" provisions that, subject to limitations, prohibit certain business combinations between us and an "interested stockholder" (defined generally as any person who beneficially owns 10% or more of the voting power of our shares or an affiliate thereof) for five years after the most recent date on which the stockholder becomes an interested stockholder, and thereafter impose special appraisal rights and special stockholder voting requirements on these combinations; and

•

"control share" provisions that provide that "control shares" of our company (defined as shares which, when aggregated with other shares controlled by the stockholder, entitle the stockholder to exercise one of three increasing ranges of voting power in electing directors) acquired in a "control share acquisition" (defined as the direct or indirect acquisition of ownership or control of "control shares") have no voting rights except to the extent approved by our stockholders by the affirmative vote of at least two-thirds of all the votes entitled to be cast on the matter, excluding all interested shares.

        We have elected to opt out of these provisions of the MGCL, in the case of the business combination provisions of the MGCL, by resolution of our board of directors, and in the case of the control share provisions of the MGCL, pursuant to a provision in our bylaws. Only upon the approval of our stockholders, our board of directors may by resolution elect to repeal the foregoing opt-outs from the business combination provisions of the MGCL and we may, only upon the approval of our stockholders, by amendment to our bylaws, opt in to the control share provisions of the MGCL in the future.

        Additionally, Title 8, Subtitle 3 of the MGCL, permits our board of directors, without stockholder approval and regardless of what is currently provided in our charter or our bylaws, to implement takeover defenses, some of which (for example, a classified board) we do not currently have. These provisions may have the effect of inhibiting a third party from making an acquisition proposal for our company or of delaying, deferring or preventing a change in control of our company under circumstances that might be in the best interest of our stockholders.

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        Our charter, bylaws, the partnership agreement for our operating partnership and Maryland law also contain other provisions that may delay, defer or prevent a transaction or a change of control that might be in the best interest of our stockholders.

Under their employment agreements, our executive officers have the right to terminate their employment and, under certain conditions, receive severance, which may adversely affect us.

        The employment agreements with our executive officers provide that each executive may terminate his or her employment and, under certain conditions, receive severance based on two or three times (depending on the officer) the annual total of salary and bonus and immediate vesting of all outstanding equity-based awards. In the case of certain terminations, they would not be restricted from competing with us after their departure.

Compensation awards to our management may not be tied to or correspond with our improved financial results or the share price of our common stock, which may adversely affect us.

        The compensation committee of our board of directors is responsible for overseeing our compensation and employee benefit plans and practices, including our executive compensation plans and our incentive compensation and equity-based compensation plans. Our compensation committee has significant discretion in structuring 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 our company or the share price of our common stock.

Our board of directors can take many actions without stockholder approval.

        Our board of directors has overall authority to oversee our operations and determine our major corporate policies. This authority includes significant flexibility. For example, our board of directors can do the following:

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amend or revise at any time and from time to time our investment, financing, borrowing and dividend policies and our policies with respect to all other activities, including growth, debt, capitalization and operations;

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amend our policies with respect to conflicts of interest provided that such changes are consistent with applicable legal requirements;

•

within the limits provided in our charter, prevent the ownership, transfer and/or 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;

•

issue additional shares without obtaining stockholder approval, which could dilute the ownership of our then-current stockholders;

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amend our charter to increase or decrease the aggregate number of shares of stock or the number of shares of stock of any class or series, without obtaining stockholder approval;

•

subject to the rights of holders of our series A preferred stock and of our series B preferred stock, classify or reclassify any unissued shares of our common stock or preferred stock, set the preferences, rights and other terms of such classified or reclassified shares, without obtaining stockholder approval;

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employ and compensate affiliates;

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direct our resources toward investments that do not ultimately appreciate over time;

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change creditworthiness standards with respect to third-party tenants; and

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•

determine that it is no longer in our best interests to continue to qualify as a REIT.

        Any of these actions could increase our operating expenses, impact our ability to make distributions or reduce the value of our assets without giving you, as a stockholder, the right to vote.

Our rights and the rights of our stockholders to take action against our directors and officers are limited.

        Maryland law provides that a director or officer has no liability in that capacity if he or she performs his or her duties in good faith, in a manner he or she reasonably believes to be in our best interests and with the care that an ordinarily prudent person in a like position would use under similar circumstances. In addition, our charter eliminates our directors' and officers' liability to us and our stockholders for money damages except for liability resulting from actual receipt of an improper benefit or profit in money, property or services or active and deliberate dishonesty established by a final judgment and which is material to the cause of action. Our bylaws require us to indemnify our directors and officers to the maximum extent permitted by Maryland law for liability actually incurred in connection with any proceeding to which they may be made, or threatened to be made, a party, except to the extent that the act or omission of the director or officer was material to the matter giving rise to the proceeding and was either committed in bad faith or was the result of active and deliberate dishonesty, the director or officer actually received an improper personal benefit in money, property or services, or, in the case of any criminal proceeding, the director or officer had reasonable cause to believe that the act or omission was unlawful. As a result, we and our stockholders may have more limited rights against our directors and officers than might otherwise exist under common law. In addition, we may be obligated to fund the defense costs incurred by our directors and officers.

The number of shares of our common stock available for future sale, including by our affiliates and other continuing investors, could adversely affect the market price of our common stock, and future sales by us of shares of our common stock may be dilutive to existing stockholders.

        Sales of substantial amounts of shares of our common stock in the public market, or upon exchange of common units or exercise of any options, or the perception that such sales might occur could adversely affect the market price of our common stock. The exchange of common units for common stock, the exercise of any stock options or the vesting of any restricted stock granted under our 2011 Equity Incentive Plan, the issuance of our common stock or common units in connection with property, portfolio or business acquisitions and other issuances of our common stock or common units could have an adverse effect on the market price of the shares of our common stock. Also, continuing investors in our initial public offering and the related formation transactions that hold common units are parties to an agreement that provides for registration rights. These registration rights required us to file a "shelf" registration statement covering all shares of our common stock for which their common units may be redeemed or exchanged pursuant to the partnership agreement of our operating partnership. A shelf registration statement covering these shares has been filed and is currently effective. The existence of shares of our common stock reserved for issuance under our 2011 Equity Incentive Plan or upon exchange of common units may adversely affect the terms upon which we may be able to obtain additional capital through the sale of equity securities. In addition, future sales by us of our common stock may be dilutive to existing stockholders.

Future offerings of debt securities, which would be senior to our common stock upon liquidation, or equity securities, which would dilute our existing stockholders and may be senior to our common stock for the purposes of distributions, may adversely affect the market price of our securities.

        Our common stock is ranked junior to our series A preferred stock and series B preferred stock. Our outstanding series A preferred stock and series B preferred stock also has or will have a preference upon our dissolution, liquidation or winding up in respect of assets available for distribution to our stockholders. Holders of our common stock are not entitled to preemptive rights or other

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protections against dilution. In the future, we may attempt to increase our capital resources by making additional offerings of debt or equity securities, including commercial paper, medium-term notes, senior or subordinated notes and classes of preferred or common stock. Upon liquidation, holders of our debt securities and shares of preferred stock and lenders with respect to other borrowings will receive a distribution of our available assets prior to the holders of our common stock. Additional equity offerings may dilute the holdings of our existing stockholders or reduce the market price of our securities or both. Because our decision to issue securities in any future offering will depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of our future offerings. Thus, our stockholders bear the risk of our future offerings reducing the market price of our securities and diluting their proportionate ownership.

The market price and trading volume of our common stock may be volatile.

        The market price of our common stock may be volatile. In addition, the trading volume in our common stock may fluctuate and cause significant price variations to occur. If the market price of our common stock declines significantly, you may be unable to resell your shares at or above the price at which they traded when you acquired them. We cannot assure you that the market price of our common stock will not fluctuate or decline significantly in the future. Some of the factors that could negatively affect the market price of our common stock or result in fluctuations in the market price or trading volume of our common stock include:

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actual or anticipated variations in our quarterly operating results;

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changes in our operations or earnings estimates or publication of research reports about us or the industry;

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changes in our dividend policy;

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increases in market interest rates that lead purchasers of our shares to demand a higher yield;

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changes in market valuations of similar companies;

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adverse market reaction to any increased indebtedness we incur in the future;

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our ability to comply with applicable financial covenants in our unsecured credit facility, unsecured term loans and other loan agreements;

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additions or departures of key management personnel;

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actions by institutional stockholders;

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the realization of any of the other risk factors presented in this report;

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speculation in the press or investment community; and

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general U.S. and worldwide market and economic conditions.

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General Real Estate Risks

Our performance and value are subject to general economic conditions and risks associated with our real estate assets.

        The investment returns available from equity investments in real estate depend on the amount of income earned and capital appreciation generated by the properties, as well as the expenses incurred in connection with the properties. If our properties do not generate income sufficient to meet operating expenses, including debt service and capital expenditures, then our ability to pay distributions to our stockholders could be adversely affected. In addition, there are significant expenditures associated with an investment in real estate (such as mortgage payments, real estate taxes and maintenance costs) that generally do not decline when circumstances reduce the income from the property. Income from and the value of our properties may be adversely affected by:

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changes in general or local economic climate;

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the attractiveness of our properties to potential tenants;

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changes in supply of or demand for similar or competing properties in an area;

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bankruptcies, financial difficulties or lease defaults by our tenants;

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changes in interest rates and availability of permanent mortgage funds that may render the sale of a property difficult or unattractive or otherwise reduce returns to stockholders;

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changes in operating costs and expenses and our ability to control rents;

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changes in or increased costs of compliance with governmental rules, regulations and fiscal policies, including changes in tax, real estate, environmental and zoning laws, and our potential liability thereunder;

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our ability to provide adequate maintenance and insurance;

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changes in the cost or availability of insurance, including coverage for mold or asbestos;

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unanticipated changes in costs associated with known adverse environmental conditions or retained liabilities for such conditions;

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periods of high interest rates and tight money supply;

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tenant turnover;

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general overbuilding or excess supply in the market; and

•

disruptions in the global supply chain caused by political, regulatory or other factors including terrorism.

        In addition, periods of economic slowdown or recession, rising interest rates or declining demand for real estate, or public perception that any of these events may occur, would result in a general decrease in rents or an increased occurrence of defaults under existing leases, which would adversely affect our financial condition and results of operations. Future terrorist attacks may result in declining economic activity, which could reduce the demand for, and the value of, our properties. To the extent that future attacks impact our tenants, their businesses similarly could be adversely affected, including their ability to continue to honor their existing leases.

        For these and other reasons, we cannot assure you that we will be profitable or that we will realize growth in the value of our real estate properties.

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Actions by our competitors may decrease or prevent increases in the occupancy and rental rates of our properties.

        We compete with other owners, operators and developers of real estate, some of which own properties similar to ours in the same markets and submarkets in which our properties are located. 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 reduce our rental rates below those we currently charge in order to retain tenants when our tenants' leases expire. As a result, our financial condition, cash flows, cash available for distribution, trading price of our securities and ability to satisfy our debt service obligations could be materially adversely affected.

A significant portion of our properties have leases that expire in the next three years and we may be unable to renew leases, lease vacant space or re-lease space as leases expire, which could adversely affect our results of operations, cash flows, cash available for distribution, and the value of our securities.

        Our results of operations, cash flows, cash available for distribution, and the value of our securities would be adversely affected if we are unable to lease, on economically favorable terms, a significant amount of space in our operating properties. As of December 31, 2013, leases with respect to 33.0% of our total annualized rent will expire before December 31, 2016. 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 average base rental rates. In addition, the number of vacant or partially vacant industrial properties in a market or submarket could adversely affect our ability to re-lease the space at attractive rental rates.

A property that incurs a vacancy could be difficult to sell or re-lease, which could adversely affect our results of operations, cash flows, cash available for distribution, and the value of our securities.

        A property may incur a vacancy either by the continued default of a tenant under its lease or the expiration of one of our leases. In addition, certain of the properties we acquire may have some level of vacancy at the time of closing. Certain of our properties may be specifically suited to the particular needs of a tenant. We may have difficulty obtaining a new tenant for any vacant space we have in our properties. If the vacancy continues for a long period of time, we may suffer reduced revenue resulting in less cash available to be distributed to stockholders. In addition, the resale value of a property could be diminished because the market value of a particular property will depend principally upon the value of the leases of such property.

We may not have funding for future tenant improvements, which could adversely affect our results of operations, cash flows, cash available for distribution, and the value of our securities.

        When a tenant at one of our properties does not renew its lease or otherwise vacates its space in one of our buildings, it is likely that, in order to attract one or more new tenants, we will be required to expend funds to construct new tenant improvements in the vacated space. Except with respect to our current reserves for capital expenditures, tenant improvements and leasing commissions, we cannot assure you that we will have adequate sources of funding available to us for such purposes in the future.

Bankruptcy laws will limit our remedies if a tenant becomes bankrupt and rejects the lease and we may be unable to collect balances due on our leases.

        If a tenant becomes bankrupt or insolvent, that could diminish the income we receive from that tenant's leases. Our tenants may experience downturns in their operating results due to adverse changes to their business or economic conditions, and those tenants that are highly leveraged may have a higher possibility of filing for bankruptcy or insolvency. We may not be able to evict a tenant solely because of

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its bankruptcy. On the other hand, a bankruptcy court might authorize the tenant to terminate its leases with us. If that happens, our claim against the bankrupt tenant for unpaid future rent would be an unsecured prepetition claim subject to statutory limitations, and therefore such amounts received in bankruptcy are likely to be substantially less than the remaining rent we otherwise were owed under the leases. In addition, any claim we have for unpaid past rent could be substantially less than the amount owed. If the lease for such a property is rejected in bankruptcy, our revenue would be reduced and could adversely impact our ability to pay distributions to stockholders.

Real estate investments are not as liquid as other types of assets, which may reduce economic returns to investors.

        Real estate investments are not as liquid as other types of investments, and this lack of liquidity may limit our ability to 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, we intend to comply with the safe harbor rules relating to the number of properties that can be disposed of in a year, the tax bases and the costs of improvements made to these properties, and other items that enable a REIT to avoid punitive taxation on the sale of assets. Thus, our ability at any time to sell assets or contribute assets to property funds or other entities in which we have an ownership interest may be restricted. This lack of liquidity may limit our ability to vary our portfolio promptly in response to changes in economic or other conditions and, as a result, could adversely affect our financial condition, results of operations, cash flows and our ability to pay distributions on, and the market price of, our securities.

Acquired properties may be located in new markets where we may face risks associated with investing in an unfamiliar market.

        We have acquired, and may continue to acquire, properties in markets that are new to us. When we acquire properties located in these markets, we may face risks associated with a lack of market knowledge or understanding of the local economy, forging new business relationships in the area and unfamiliarity with local government and permitting procedures.

Uninsured losses relating to real property may adversely affect your returns.

        We attempt to ensure that all of our properties are adequately insured to cover casualty losses. However, there are certain losses, including losses from floods, earthquakes, acts of war, acts of terrorism or riots, that are not generally insured against or that are not generally fully insured against because it is not deemed economically feasible or prudent to do so. In addition, changes in the cost or availability of insurance could expose us to uninsured casualty losses. In the event that any of our properties incurs a casualty loss that is not fully covered by insurance, the value of our assets will be reduced by the amount of any such uninsured loss, and we could experience a significant loss of capital invested and potential revenue in these properties and could potentially remain obligated under any recourse debt associated with the property. Moreover, we, as the indirect general partner of our operating partnership, generally will be liable for all of our operating partnership's unsatisfied recourse obligations, including any obligations incurred by our operating partnership as the general partner of joint ventures. Any such losses could adversely affect our financial condition, results of operations, cash flows and ability to pay distributions on, and the market price of, our securities. In addition, we may have no source of funding to repair or reconstruct the damaged property, and we cannot assure you that any such sources of funding will be available to us for such purposes in the future. We evaluate our insurance coverage annually in light of current industry practice through an analysis prepared by outside consultants.

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Contingent or unknown liabilities could adversely affect our financial condition.

        As part of the formation transactions, we assumed existing liabilities of contributed operating companies and liabilities in connection with contributed properties, some of which may be unknown or unquantifiable. Unknown liabilities might include liabilities for cleanup or remediation of undisclosed environmental conditions beyond the scope of our environmental insurance coverage, claims of tenants, vendors or other persons dealing with the entities prior to our initial public offering, tax liabilities, and accrued but unpaid liabilities whether incurred in the ordinary course of business or otherwise. In addition, we may in the future acquire properties, or may have previously owned properties, subject to liabilities and without any recourse, or with only limited recourse, with respect to unknown liabilities. As a result, if a liability were asserted against us based on ownership of any of these entities or properties, then we might have to pay substantial sums to settle it, which could adversely affect our cash flows.

Environmentally hazardous conditions may adversely affect our operating results.

        Under various federal, state and local environmental laws, a current or previous owner or operator of real property may be liable for the cost of removing or remediating hazardous or toxic substances on such property. Such laws often impose liability whether or not the owner or operator knew of, or was responsible for, the presence of such hazardous or toxic substances. Even if more than one person may have been responsible for the contamination, each person covered by the environmental laws may be held responsible for all of the clean-up costs incurred. In addition, third parties may sue the owner or operator of a site for damages based on personal injury, natural resources or property damage or other costs, including investigation and clean-up costs, resulting from the environmental contamination. The presence of hazardous or toxic substances on one of our properties, or the failure to properly remediate a contaminated property, could give rise to a lien in favor of the government for costs it may incur to address the contamination, or otherwise adversely affect our ability to sell or lease the property or borrow using the property as collateral. Environmental laws also may impose restrictions on the manner in which property may be used or businesses may be operated. A property owner who violates environmental laws may be subject to sanctions which may be enforced by governmental agencies or, in certain circumstances, private parties. In connection with the acquisition and ownership of our properties, we may be exposed to such costs. The cost of defending against environmental claims, of compliance with environmental regulatory requirements or of remediating any contaminated property could materially adversely affect our business, assets or results of operations and, consequently, amounts available for distribution to our stockholders.

        Environmental laws in the United States also require that owners or operators 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, including removal or other abatement, in the event that asbestos is disturbed during building renovation or demolition. These laws may impose fines and penalties on building owners or operators who fail to comply with these requirements and may allow third parties to seek recovery from owners or operators for personal injury associated with exposure to asbestos. Some of our properties contain asbestos-containing building materials.

        We invest in properties historically used for industrial, light manufacturing and commercial purposes. Some of these properties contain, or may have contained, underground storage tanks for the storage of petroleum products and other hazardous or toxic substances. All of these operations create a potential for the release of petroleum products or other hazardous or toxic substances. Some of our properties are adjacent to or near other properties that have contained or currently contain underground storage tanks used to store petroleum products or other hazardous or toxic substances. In addition, certain of our properties are on or are adjacent to or near other properties upon which

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others, including former owners or tenants of our properties, have engaged, or may in the future engage, in activities that may release petroleum products or other hazardous or toxic substances.

        From time to time, we may acquire properties, or interests in properties, with known adverse environmental conditions where we believe that the environmental liabilities associated with these conditions are quantifiable and that the acquisition will yield a superior risk-adjusted return. In such an instance, we underwrite the costs of environmental investigation, clean-up and monitoring into the cost. Further, in connection with property dispositions, we may agree to remain responsible for, and to bear the cost of, remediating or monitoring certain environmental conditions on the properties.

        Preliminary assessments of environmental conditions at a property that meet certain specifications are often referred to as "Phase I environmental site assessments" or "Phase I environmental assessments." They are intended to discover and evaluate information regarding the environmental condition of the surveyed property and surrounding properties. Phase I environmental assessments generally include an historical review, a public records review, an investigation of the surveyed site and surrounding properties, and preparation and issuance of a written report, but do not include soil sampling or subsurface investigations and typically do not include an asbestos survey. Material environmental conditions, liabilities or compliance concerns may arise after the environmental assessment has been completed. 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.

Compliance or failure to comply with the Americans with Disabilities Act and other similar regulations could result in substantial costs.

        Under the ADA, places of public accommodation must meet certain federal requirements related to access and use by disabled persons. Noncompliance could result in the imposition of fines by the federal government or the award of damages to private litigants. If we are required to make unanticipated expenditures to comply with the ADA, including removing access barriers, then our cash flows and the amounts available for distributions to our stockholders may be adversely affected. While we believe that our properties are currently in material compliance with these regulatory requirements, the requirements may change or new requirements may be imposed that could require significant unanticipated expenditures by us that will affect our cash flows and results of operations.

Four of our properties are subject to a ground lease that exposes us to the loss of such property upon breach or termination of the ground lease and may limit our ability to sell the property.

        We own four of our properties through a leasehold interest in the land underlying the building and we may acquire additional buildings in the future that are subject to similar ground leases. As lessee under a ground lease, we are exposed to the possibility of losing the property upon expiration, or an earlier breach by us, of the ground lease, which may have an adverse effect on our business, financial condition and results of operations, our ability to make distributions to our stockholders, and the trading price of our securities.

        In the future, our ground leases may contain certain provisions that may limit our ability to sell certain of our properties. In addition, in the future, in order to assign or transfer our rights and obligations under certain of our ground leases, we may be required to obtain the consent of the landlord which, in turn, could adversely impact the price realized from any such sale.

        We also own one property that benefits from payment in lieu of tax ("PILOT") programs and to facilitate such tax treatment our ownership in this property is structured as a leasehold interest with the

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relevant municipality serving as lessor. With respect to such arrangements, we have the right to purchase the fee interest in the property for a nominal purchase price, so the risk factors set forth above for traditional ground leases are mitigated by our ability to convert such leasehold interests to fee interests. In the event of such a conversion of our ownership interests, however, any preferential tax treatment offered by the PILOT programs will be lost.

We may be unable to sell a property if or when we decide to do so, including as a result of uncertain market conditions, which could adversely affect the return on your investment.

        We expect to hold the various real properties in which we invest until such time as we decide that a sale or other disposition is appropriate given our investment objectives. Our ability to dispose of properties on advantageous terms depends on factors beyond our control, including competition from other sellers and the availability of attractive financing for potential buyers of our properties. We cannot predict the various market conditions affecting real estate investments which will exist at any particular time in the future. Due to the uncertainty of market conditions which may affect the future disposition of our properties, we cannot assure you that we will be able to sell our properties at a profit in the future. Accordingly, the extent to which you will receive cash distributions and realize potential appreciation on our real estate investments will be dependent upon fluctuating market conditions.

        Furthermore, we may be required to expend funds to correct defects or to make improvements before a property can be sold. We cannot assure you that we will have funds available to correct such defects or to make such improvements.

If we sell properties and provide financing to purchasers, defaults by the purchasers would adversely affect our cash flows.

        If we decide to sell any of our properties, we presently intend to use our best efforts to sell them for cash. However, in some instances we may sell our properties by providing financing to purchasers. If we provide financing to purchasers, we will bear the risk that the purchaser may default, which could negatively impact our cash distributions to stockholders and result in litigation and related expenses. Even in the absence of a purchaser default, the distribution of the proceeds of sales to our stockholders, or their reinvestment in other assets, will be delayed until the promissory notes or other property we may accept upon a sale are actually paid, sold, refinanced or otherwise disposed of.

Risks Related to Our Debt Financings

Our operating results and financial condition could be adversely affected if we are unable to make required payments on our debt.

        Our charter and bylaws do not limit the amount or percentage of indebtedness that we may incur, and we are subject to risks normally associated with debt financing, including the risk that our cash flows will be insufficient to meet required payments of principal and interest. There can be no assurance that we will be able to refinance any maturing indebtedness, that such refinancing would be on terms as favorable as the terms of the maturing indebtedness or that we will be able to otherwise obtain funds by selling assets or raising equity to make required payments on maturing indebtedness.

        In particular, loans obtained to fund property acquisitions may be secured by first mortgages on such properties. If we are unable to make our debt service payments as required, a lender could foreclose on the property or properties securing its debt. This could cause us to lose part or all of our investment, which in turn could cause the value of our stock to decrease and negatively impact our ability to pay distributions. Certain of our existing and secured future indebtedness is and may be cross-collateralized and, consequently, a default on this indebtedness could cause us to lose part or all of our investment in multiple properties.

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Increases in interest rates could increase the amount of our debt payments and adversely affect our ability to make distributions to our stockholders.

        As of December 31, 2013, we had total outstanding debt of approximately $556.1 million, including $130.5 million of debt subject to variable interest rates (excluding amounts outstanding under our unsecured term loans that were hedged to fix rates), and we expect that we will incur additional indebtedness in the future. Interest we pay reduces our cash available for distributions. Since we have incurred and may continue to incur variable rate debt, increases in interest rates raise our interest costs, which reduces our cash flows and our ability to make distributions to you. If we are unable to refinance our indebtedness at maturity or meet our payment obligations, the amount of our distributable cash flows and our financial condition would be adversely affected, and we may lose the property securing such indebtedness. In addition, if we need to repay existing debt during periods of rising interest rates, we could be required to liquidate one or more of our investments in properties at times which may not permit realization of the maximum return on such investments.

Covenants in our mortgage loans, our unsecured credit facility and unsecured term loans and any future debt instruments could limit our flexibility, prevent us from paying distributions, and adversely affect our financial condition or our status as a REIT.

        The terms of certain of our mortgage loans require us to comply with loan-to-collateral-value ratios, debt service coverage ratios and, in the case of an event of default, limitations on the ability of our subsidiaries that are borrowers under our mortgage loans to make distributions to us or our other subsidiaries. In addition, our unsecured credit facility and unsecured term loans require us to comply with loan-to-collateral-value ratios, debt service coverage ratios, leverage ratios, recourse indebtedness thresholds, fixed charge coverage ratios and tangible net worth thresholds and limits. Our existing loan covenants may reduce flexibility in our operations, and breaches of these covenants could result in defaults under the instruments governing the applicable indebtedness even if we have satisfied our payment obligations. In addition, upon a default, our unsecured credit facility and unsecured term loans will limit, among other things, our ability to pay dividends, even if we are otherwise in compliance with our financial covenants. Other indebtedness that we may incur in the future may contain financial or other covenants more restrictive than those in our mortgage loans, unsecured credit facility and unsecured term loans.

        As of December 31, 2013, we had certain secured loans that are cross-collateralized by multiple properties. If we default on any of these loans we may then be required to repay such indebtedness, together with applicable prepayment charges, to avoid foreclosure on all cross-collateralized properties within the applicable pool. Moreover, our unsecured credit facility and unsecured term loans contain, and future secured corporate credit facilities may contain, certain cross-default provisions which are triggered in the event that our other material indebtedness is in default. These cross-default provisions may require us to repay or restructure the facilities in addition to any mortgage or other debt that is in default. If our properties were foreclosed upon, or if we are unable to refinance our indebtedness at maturity or meet our payment obligations, the amount of our distributable cash flows and our financial condition would be adversely affected.

        We are a holding company and conduct all of our operations through our operating partnership. We do not have, apart from our ownership of our operating partnership, any independent operations. As a result, we will rely on distributions from our operating partnership to pay any dividends we might declare on our securities. We will also rely on distributions from our operating partnership to meet our debt service and other obligations, including our obligations to make distributions required to maintain our REIT status. The ability of subsidiaries of our operating partnership to make distributions to our operating partnership, and the ability of our operating partnership to make distributions to us in turn, will depend on their operating results and on the terms of any loans that encumber the properties owned by them. Such loans may contain lockbox arrangements, reserve requirements, financial

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covenants and other provisions that restrict the distribution of funds. In the event of a default under these loans, the defaulting subsidiary would be prohibited from distributing cash. For example, our subsidiaries are party to mortgage loans that prohibit, in the event of default, their distribution of any cash to a related party, including our operating partnership. As a result, a default under any of these loans by the borrower subsidiaries could cause us to have insufficient cash to make the distributions required to maintain our REIT status.

If we enter into financing arrangements involving balloon payment obligations, it may adversely affect our ability to make distributions.

        Some of our financing arrangements require us to make a lump-sum or "balloon" payment at maturity. Our ability to make a balloon payment at maturity is uncertain and may depend upon our ability to obtain additional financing or our ability to sell the property. At the time the balloon payment is due, we may or may not be able to refinance the existing financing on terms as favorable as the original loan or sell the property at a price sufficient to make the balloon payment. The effect of a refinancing or sale could affect the rate of return to stockholders and the projected time of disposition of our assets. In addition, payments of principal and interest made to service our debts may leave us with insufficient cash to pay the distributions that we are required to pay to maintain our qualification as a REIT.

If mortgage debt or unsecured debt is unavailable at reasonable rates, we may not be able to finance or refinance our properties, which could reduce the number of properties we can acquire and the amount of cash distributions we can make.

        If mortgage debt or unsecured debt is unavailable at reasonable rates, we may not be able to finance the purchase of properties. In addition, we run the risk of being unable to refinance mortgage debt or unsecured debt when the loans come due or of being unable to refinance such debt on favorable terms. If interest rates are higher when we refinance such debt, our income could be reduced. We may be unable to refinance such debt at appropriate times, which may require us to sell properties on terms that are not advantageous to us or could result in the foreclosure of any mortgaged properties. If any of these events occur, our cash flows would be reduced. This, in turn, would reduce cash available for distribution to you and may hinder our ability to raise more capital by issuing more stock or by borrowing more money.

Our hedging strategies may not be successful in mitigating our risks associated with interest rates and could reduce the overall returns on your investment.

        We use various derivative financial instruments to provide a level of protection against interest rate risks, but no hedging strategy can protect us completely. These instruments involve risks, such as the risk that the counterparties may fail to honor their obligations under these arrangements, that these arrangements may not be effective in reducing our exposure to interest rate changes and that a court could rule that such agreements are not legally enforceable. These instruments may also generate income that may not be treated as qualifying REIT income for purposes of the 75% or 95% REIT income tests. In addition, the nature and timing of hedging transactions may influence the effectiveness of our hedging strategies. Poorly designed strategies or improperly executed transactions could actually increase our risk and losses. Moreover, hedging strategies involve transaction and other costs. We cannot assure you that our hedging strategy and the derivatives that we use will adequately offset the risk of interest rate volatility or that our hedging transactions will not result in losses that may reduce the overall return on your investment.

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U.S. Federal Income Tax Risks

Failure to qualify as a REIT would reduce our net earnings available for investment or distribution.

        Our qualification as a REIT will depend upon our ability to meet requirements regarding our organization and ownership, distributions of our income, the nature and diversification of our income and assets and other tests imposed by the Code. If we fail to qualify as a REIT for any taxable year after electing REIT status, we will be subject to federal income tax on our taxable income at regular corporate rates. In addition, we would generally be disqualified from treatment as a REIT for the four taxable years following the year in which we failed to qualify as a REIT. Losing our REIT status would reduce our net earnings available for investment or distribution to stockholders because of the additional tax liability. 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.

Even if we qualify as a REIT for federal income tax purposes, we may be subject to other tax liabilities that reduce our cash flow and our ability to make distributions to our stockholders.

        Even if we qualify as a REIT for federal income tax purposes, we may be subject to some federal, state and local taxes on our income or property. For example:

•

To qualify as a REIT, we must distribute annually at least 90% of our REIT taxable income to our stockholders (which is determined without regard to the dividends-paid deduction or net capital gain). To the extent that we satisfy the distribution requirement but distribute less than 100% of our REIT taxable income, we will be subject to federal corporate income tax on the undistributed income.

•

We will be subject to a 4% nondeductible excise tax on the amount, if any, by which distributions we pay in any calendar year are less than the sum of 85% of our ordinary income, 95% of our capital gain net income and 100% of our undistributed income from prior years.

•

If we have net income from the sale of foreclosure property that we hold primarily for sale to customers in the ordinary course of business or other non-qualifying income from foreclosure property, we must pay a tax on that income at the highest corporate income tax rate.

•

If we sell an asset, other than foreclosure property, that we hold primarily for sale to customers in the ordinary course of business, our gain would be subject to the 100% "prohibited transaction" tax unless such sale were made by our taxable REIT subsidiary ("TRS") or if we qualify for a safe harbor from tax.

        We intend to make distributions to our stockholders to comply with the REIT requirements of the Code.

REIT distribution requirements could adversely affect our ability to execute our business plan.

        From time to time, we may generate taxable income greater than our income for financial reporting purposes, or our taxable income may be greater than our cash flow available for distribution to stockholders. If we do not have other funds available in these situations, we could be required to borrow funds, sell investments at disadvantageous prices, make taxable distributions of our stock or debt securities or find another alternative source of funds to make distributions sufficient to enable us to pay out enough of our taxable income to satisfy the REIT distribution requirement and to avoid corporate income tax and the 4% excise tax in a particular year. These alternatives could increase our costs or reduce the value of our equity. Thus, compliance with the REIT requirements may hinder our ability to operate solely on the basis of maximizing profits.

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To maintain our REIT status, we may be forced to forego otherwise attractive opportunities, which may delay or hinder our ability to meet our investment objectives and reduce our stockholders' overall return.

        To qualify as a REIT, we must satisfy certain tests on an ongoing basis concerning, among other things, the sources of our income, nature of our assets and the amounts we distribute to our stockholders. 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. 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.

Recharacterization of sale-leaseback transactions may cause us to lose our REIT status.

        In certain circumstances, we expect to purchase real properties and lease them back to the sellers of such properties. While we intend to structure any such sale-leaseback transaction such that the lease will be characterized as a "true lease" for tax purposes, thereby allowing us to be treated as the owner of the property for federal income tax purposes, we cannot assure you that the Internal Revenue Service ("IRS") will not challenge such characterization. In the event that any such sale-leaseback transaction is challenged and recharacterized as a financing transaction or loan for federal income tax purposes, deductions for depreciation and cost recovery relating to such property would be disallowed. If a sale-leaseback transaction were so recharacterized, we might fail to satisfy the REIT qualification "asset tests" or "income tests" and, consequently, lose our REIT status effective with the year of recharacterization. Alternatively, the amount of our REIT taxable income could be recalculated which might also cause us to fail to meet the distribution requirement for a taxable year.

We may be subject to adverse legislative or regulatory tax changes affecting REITs that could have a negative effect on us.

        The rules dealing with federal income taxation are constantly under review by persons involved in the legislative process and by the IRS and the U.S. Department of the Treasury. Changes to the tax laws, with or without retroactive application, could adversely affect our stockholders or us. We cannot predict how changes in the tax laws might affect our stockholders or us. New legislation, Treasury Regulations, administrative interpretations or court decisions could significantly and negatively affect our ability to qualify as a REIT or the federal income tax consequences of such qualification.

Item 1B.    Unresolved Staff Comments

        None.

Item 2.    Properties

        Our target properties fit into two general categories:

•

Warehouse/Distribution—properties generally 200,000 to 1,000,000 square feet in size with ceiling heights between 22 feet and 36 feet and used to store and ship various materials and products.

•

Light Manufacturing—properties generally 75,000 to 250,000 square feet in size with ceiling heights between 16 feet and 22 feet and used to manufacture all types of goods and products.

        We target Class B properties, as compared to Class A properties. The distinction between Class A industrial and Class B industrial properties is subjective. However, we consider Class A and Class B industrial properties to be as follows:

•

Class A industrial properties typically possess most of the following characteristics: concrete tilt-up construction, clear height in excess of 26 feet, a ratio of dock doors to floor area that is more than one door per 10,000 square feet, truck courts sized to accommodate easy maneuvering of long-haul tractor trailer trucks, energy efficient design characteristics, less than 15 years old and square footage generally in excess of 200,000 square feet.

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•

Class B industrial properties typically vary from Class A industrial properties in that they have some but not all of the features of the Class A industrial properties. These properties remain functional but are less attractive to high volume distribution users.

Our definition of Class A and Class B may be different from those used by other companies.

        As of December 31, 2013, we owned the properties listed below. Except as otherwise noted in the footnotes, we own fee simple interests in all of the properties.

State	City	Number of Buildings		Asset Type(12)	Total Rentable Square Feet
Alabama
	Phenix City(9)		1	Warehouse / Distribution		117,568
Arkansas
	Rogers(3)		1	Warehouse / Distribution		400,000
Colorado
	Golden(3)		1	Warehouse / Distribution		227,500
Connecticut
	Avon(3)		1	Light Manufacturing		78,400
	East Windsor(11)		1	Warehouse / Distribution		145,000
Delaware
	Newark(3)		1	Flex / Office		28,653
	Newark(3)		1	Flex / Office		24,012
Florida
	Daytona Beach		1	Light Manufacturing		142,857
	Ocala(3)		1	Warehouse / Distribution		619,466
	Orlando(3)		1	Light Manufacturing		215,900
	Orlando(3)		1	Warehouse / Distribution		155,000
	Pensacola(3)		1	Flex / Office		30,620
	Pensacola(3)		1	Flex / Office		7,409
	Tavares(3)		1	Light Manufacturing		148,298
Georgia
	Atlanta(3)		1	Warehouse / Distribution		407,981
	Conyers(4)		1	Warehouse / Distribution		226,256
	Dallas(3)		1	Warehouse / Distribution		92,807
	LaGrange(3)		1	Warehouse / Distribution		249,716
	Shannon		1	Warehouse / Distribution		568,516
	Smyrna(3)		1	Warehouse / Distribution		102,000
	Statham(3)		1	Warehouse / Distribution		225,680
Idaho
	Idaho Falls(3)		1	Warehouse / Distribution		90,300
	Pocatello(3)		1	Flex / Office		43,353
Illinois
	Belvidere(3)		1	Warehouse / Distribution		105,000
	Belvidere(3)		1	Warehouse / Distribution		105,000
	Belvidere(3)		1	Warehouse / Distribution		70,000
	Belvidere(3)		1	Warehouse / Distribution		176,960
	Belvidere(3)		1	Warehouse / Distribution		105,000
	Belvidere(3)		1	Warehouse / Distribution		100,000
	Belvidere(3)		1	Warehouse / Distribution		90,000
	Belvidere(3)		1	Warehouse / Distribution		255,000
	Dekalb(3)		1	Warehouse / Distribution		146,740
	Gurnee(3)		1	Warehouse / Distribution		223,760

30

State	City	Number of Buildings		Asset Type(12)	Total Rentable Square Feet
	Harvard		1	Light Manufacturing		126,304
	Montgomery(3)		1	Warehouse / Distribution		584,301
	Mt. Prospect(3)		1	Warehouse / Distribution		87,380
	Sauk Village		1	Warehouse / Distribution		375,785
	South Holland		1	Warehouse / Distribution		202,902
	Woodstock(3)		1	Light Manufacturing		129,803
Indiana
	Albion(3)		7	Light Manufacturing		261,013
	Elkhart(3)		1	Warehouse / Distribution		18,000
	Elkhart(3)		1	Warehouse / Distribution		152,100
	Franklin(3)		1	Warehouse / Distribution		703,496
	Goshen(4)		1	Warehouse / Distribution		366,000
	Kendallville(3)		1	Light Manufacturing		58,500
	Lafayette(9)		1	Warehouse / Distribution		71,400
	Lafayette(9)		1	Warehouse / Distribution		120,000
	Lafayette(9)		1	Warehouse / Distribution		275,000
	Marion(9)		1	Warehouse / Distribution		249,600
	Mishawaka(3)		1	Light Manufacturing		308,884
	Portage(2)		1	Warehouse / Distribution		212,000
	South Bend(3)		1	Warehouse / Distribution		225,000
Iowa
	Marion(3)		1	Warehouse / Distribution		95,500
	Sergeant Bluff(3)		1	Flex / Office		148,131
Kansas
	Kansas City(9)		1	Light Manufacturing		56,580
	Parsons(9)		1	Light Manufacturing		120,000
	Wichita(9)		1	Warehouse / Distribution		80,850
	Wichita(9)		1	Warehouse / Distribution		120,000
	Wichita(9)		1	Warehouse / Distribution		44,760
	Wichita(9)		1	Warehouse / Distribution		47,700
Kentucky
	Danville(3)		1	Warehouse / Distribution		757,047
	Georgetown(4)		1	Warehouse / Distribution		97,500
	Louisville(4)		1	Warehouse / Distribution		191,820
	Louisville(4)		1	Warehouse / Distribution		306,000
	Bardstown(3)		1	Warehouse / Distribution		102,318
Maine
	Belfast(3)		5	Flex / Office		318,979
	Lewiston(3)		1	Flex / Office		60,000
	Portland(10)		1	Warehouse / Distribution		100,600
Maryland
	Hampstead(3)		1	Warehouse / Distribution		1,035,249
	Sparks		2	Flex / Office		34,800
Massachusetts
	Chicopee(3)		1	Warehouse / Distribution		217,000
	Malden(3)		1	Light Manufacturing		46,129
	Malden(3)		1	Light Manufacturing		63,814
	Norton(6)		1	Warehouse / Distribution		200,000
Michigan
	Auburn Hills		1	Warehouse / Distribution		87,932
	Chesterfield(3)		1	Warehouse / Distribution		68,300
	Chesterfield(3)		1	Warehouse / Distribution		49,612

31

State	City	Number of Buildings		Asset Type(12)	Total Rentable Square Feet
	Chesterfield(3)		1	Warehouse / Distribution		49,849
	Chesterfield(3)		1	Warehouse / Distribution		311,042
	Holland(3)		1	Warehouse / Distribution		307,576
	Holland(9)		1	Warehouse / Distribution		195,000
	Holland(3)		1	Light Manufacturing		198,822
	Kentwood(3)		1	Light Manufacturing		85,157
	Lansing(4)		1	Warehouse / Distribution		231,000
	Lansing(3)		1	Warehouse / Distribution		129,325
	Lansing(9)		1	Warehouse / Distribution		250,100
	Lansing		1	Warehouse / Distribution		160,000
	Marshall(3)		1	Light Manufacturing		57,025
	Novi(9)		1	Warehouse / Distribution		120,800
	Southfield(3)(13)		1	Warehouse / Distribution		113,000
	Sterling Heights(9)		1	Warehouse / Distribution		108,000
	Walker(4)		1	Warehouse / Distribution		210,000
Minnesota
	Alexandria(3)		1	Light Manufacturing		172,170
	New Hope(3)		1	Light Manufacturing		107,348
	Rogers(4)		1	Warehouse / Distribution		386,724
Mississippi
	Jackson(3)		1	Flex / Office		11,600
	Jackson(3)		1	Flex / Office		39,909
Missouri
	St. Louis(5)		1	Warehouse / Distribution		305,550
	Kansas City(3)		1	Warehouse / Distribution		226,576
	O'Fallon(4)		1	Warehouse / Distribution		77,000
	Hazelwood		1	Warehouse / Distribution		249,441
New Hampshire
	Londonderry(3)		1	Warehouse / Distribution		125,060
New Jersey
	Lopatcong(3)		1	Warehouse / Distribution		87,500
	Piscataway(3)		1	Warehouse / Distribution		228,000
New York
	Buffalo(3)		1	Warehouse / Distribution		117,000
	Cheektowaga(3)		1	Warehouse / Distribution		121,760
	Farmington(3)		1	Warehouse / Distribution		149,657
	Gloversville(9)		1	Warehouse / Distribution		50,000
	Gloversville(9)		1	Warehouse / Distribution		101,589
	Gloversville(9)		1	Flex / Office		26,529
	Gloversville(9)		1	Warehouse / Distribution		59,965
	Johnstown(9)		1	Warehouse / Distribution		52,500
	Johnstown(9)		1	Warehouse / Distribution		60,000
	Johnstown(9)		1	Light Manufacturing		42,325
	Johnstown(9)		1	Warehouse / Distribution		57,102
North Carolina
	Charlotte(4)		1	Warehouse / Distribution		491,025
	Charlotte(4)		1	Warehouse / Distribution		465,323
	Huntersville(3)		1	Warehouse / Distribution		185,570
	Jefferson(3)		2	Light Manufacturing		103,577
	Lexington(3)		1	Warehouse / Distribution		201,800
	Mebane(3)		1	Warehouse / Distribution		223,340
	Mebane(3)		1	Light Manufacturing		202,691

32

State	City	Number of Buildings		Asset Type(12)	Total Rentable Square Feet
	Mebane		1	Warehouse / Distribution		383,500
	Mooresville(4)		1	Warehouse / Distribution		300,000
	Newton(3)		1	Warehouse / Distribution		187,200
	Pineville(3)		1	Light Manufacturing		75,400
	Rural Hall(3)		1	Warehouse / Distribution		250,000
	Smithfield(3)		1	Warehouse / Distribution		191,450
Ohio
	Bellevue(3)		1	Warehouse / Distribution		181,838
	Boardman(3)		1	Warehouse / Distribution		175,900
	Boardman(3)		1	Light Manufacturing		95,000
	Canton		1	Warehouse / Distribution		448,000
	Cincinnati(8)		1	Flex / Office		114,532
	Dayton		1	Flex / Office		113,000
	Gahanna(7)		1	Warehouse / Distribution		383,000
	Salem(3)		1	Light Manufacturing		251,000
	North Jackson(4)		1	Warehouse / Distribution		307,315
	North Jackson(3)		1	Warehouse / Distribution		209,835
	Seville(3)		2	Warehouse / Distribution		345,000
	Springfield(3)		1	Warehouse / Distribution		350,500
	Streetsboro(4)		1	Warehouse / Distribution		343,416
	Toledo(3)		1	Warehouse / Distribution		177,500
	Twinsburg(3)		1	Warehouse / Distribution		120,774
Oklahoma
	Catoosa(2)(3)		1	Light Manufacturing		100,100
Oregon
	Gresham(4)		1	Warehouse / Distribution		420,690
	Salem(4)		1	Light Manufacturing		108,000
	Salem(4)		1	Light Manufacturing		47,900
Pennsylvania
	Muhlenberg Township(3)		1	Warehouse / Distribution		394,289
	O'Hara Township(9)		1	Warehouse / Distribution		887,084
	Warrendale(3)		1	Warehouse / Distribution		148,065
	Williamsport(3)		1	Warehouse / Distribution		250,000
South Carolina
	Duncan(3)		1	Warehouse / Distribution		474,000
	Duncan(3)		1	Warehouse / Distribution		313,380
	Edgefield(3)		1	Light Manufacturing		126,190
	Greenwood(9)		1	Light Manufacturing		104,955
	Greenwood(9)		1	Light Manufacturing		70,100
	Orangeburg(3)		1	Warehouse / Distribution		319,000
	Simpsonville(3)		1	Warehouse / Distribution		204,952
	Simpsonville(3)		1	Warehouse / Distribution		207,042
	Spartanburg(3)		4	Warehouse / Distribution		409,600
	Ware Shoals(9)		1	Light Manufacturing		20,514
	West Columbia(3)		1	Warehouse / Distribution		273,280
South Dakota
	Rapid City(3)		1	Flex / Office		137,000
Tennessee
	Cleveland(4)		1	Warehouse / Distribution		151,704
	Jackson		1	Warehouse / Distribution		250,000
	Madison(4)		1	Warehouse / Distribution		418,406
	Mascot		1	Light Manufacturing		130,560

33

State	City	Number of Buildings		Asset Type(12)	Total Rentable Square Feet
	Nashville(3)		1	Warehouse / Distribution		150,000
	Portland(3)(1)		1	Warehouse / Distribution		414,043
	Vonore(4)		1	Warehouse / Distribution		342,700
Texas
	Arlington(3)		1	Warehouse / Distribution		94,132
	Arlington(3)		1	Warehouse / Distribution		196,000
	El Paso(2)		1	Warehouse / Distribution		269,245
	Fort Worth(4)		1	Warehouse / Distribution		101,500
	Houston(3)		1	Warehouse / Distribution		201,574
	Round Rock		1	Light Manufacturing		79,180
	Waco(2)		1	Warehouse / Distribution		66,400
Virginia
	Buena Vista(3)		1	Light Manufacturing		172,759
	Lexington(3)		1	Warehouse / Distribution		15,085
	Fairfield(3)		1	Light Manufacturing		75,221
	Harrisonburg(3)		1	Warehouse / Distribution		357,673
	Independence(9)		1	Warehouse / Distribution		120,000
Wisconsin
	Appleton		1	Light Manufacturing		145,519
	Chippewa Falls		1	Light Manufacturing		77,700
	Chippewa Falls		1	Light Manufacturing		19,700
	De Pere(3)		1	Warehouse / Distribution		200,000
	Janesville		1	Warehouse / Distribution		700,000
	Mayville(3)		1	Light Manufacturing		339,179
	Milwaukee(3)		2	Warehouse / Distribution		117,564
	Milwaukee(3)		1	Light Manufacturing		270,000
	New Berlin(3)		1	Warehouse / Distribution		205,063
	Sun Prairie(3)		1	Warehouse / Distribution		427,000
			209			38,086,376

(1)

Subject to a PILOT agreement.

(2)

Subject to ground lease.

(3)

This property is part of the borrowing base for our unsecured credit facility and unsecured term loans as of February 26, 2014.

(4)

The acquisition loan facilities with Connecticut General Life Insurance Company ("CIGNA") are collateralized by this property.

(5)

The Union Fidelity Life Insurance Co. loan is collateralized by this property.

(6)

The Webster Bank, N.A. loan is collateralized by this property.

(7)

The Sun Life Assurance Company of Canada (U.S.) loan is collateralized by this property.

(8)

The parking lot utilized by the tenant adjacent to the property is subject to a ground lease.

(9)

The Wells Fargo Bank, N.A. loan is collateralized by this property.

(10)

The Webster Bank, N.A. loan is collateralized by this property.

(11)

The Webster Bank, N.A. loan is collateralized by this property.

(12)

Flex / Office are properties that are generally 50,000 to 200,000 square feet in size and used for office space, light manufacturing, research and development and warehousing.

(13)

This property includes a vacant land parcel adjacent to the building.

34

Property Diversification

        The following table sets forth information relating to diversification by property type in our portfolio based on total annualized rent as of December 31, 2013.

Property Type	Total Number of Buildings		Occupancy(1)			Total Occupied Square Feet		Percentage of Total Occupied Square Feet			Total Annualized Rent		Annualized Rent Per Leased Square Foot		Percentage of Total Annualized Rent
Warehouse/Distribution		142		95.9	%		30,600,349		84.0	%	$	111,454,981	$	3.64		80.2	%
Light Manufacturing		47		95.9	%		4,827,541		13.3	%		17,426,002		3.61		12.5	%
Flex/Office		20		87.2	%		992,636		2.7	%		10,156,590		10.23		7.3	%
Total/Weighted Average		209		95.6	%		36,420,526		100.0	%	$	139,037,573	$	3.82		100.0	%

(1)

Calculated as the average economic occupancy weighted by each property's rentable square footage. As used herein, economic occupancy includes all square footage where an existing lease is in place whether or not such square footage is physically occupied.

Geographic Diversification

        The following table sets forth information relating to geographic diversification by state in our portfolio based on total annualized rent as of December 31, 2013.

	Total Number of Buildings		Occupancy(1)			Total Occupied Square Feet		Percentage of Total Occupied Square Feet			Total Annualized Rent		Annualized Rent Per Leased Square Foot		Percentage of Total Annualized Rent
Illinois		16		97.9	%		2,823,935		7.6	%	$	12,354,820	$	4.38		8.9	%
North Carolina		14		100.0	%		3,260,876		8.6	%		12,083,896	$	3.71		8.7	%
Ohio		16		93.1	%		3,368,162		9.5	%		11,584,014	$	3.44		8.3	%
Michigan		18		90.5	%		2,473,474		7.2	%		9,992,712	$	4.04		7.2	%
Indiana		19		100.0	%		3,020,993		7.9	%		9,558,624	$	3.16		6.9	%
Wisconsin		11		96.8	%		2,421,860		6.6	%		7,988,442	$	3.30		5.7	%
South Carolina		14		100.0	%		2,523,013		6.6	%		7,566,354	$	3.00		5.4	%
Pennsylvania		4		100.0	%		1,679,438		4.4	%		6,853,299	$	4.08		4.9	%
Tennessee		7		92.6	%		1,719,315		4.9	%		5,729,015	$	3.33		4.1	%
Florida		7		100.0	%		1,319,550		3.5	%		5,621,339	$	4.26		4.0	%
All Others		83		92.6	%		11,809,910		33.2	%		49,705,058	$	4.21		35.9	%
		209		95.6	%		36,420,526		100.0	%		139,037,573	$	3.82		100.0	%

(1)

Calculated as the average economic occupancy weighted by each property's rentable square footage.

35

Industry Diversification

        The following table sets forth information relating to tenant diversification by industry in our portfolio based on total annualized rent as of December 31, 2013.

Industry	Total Number of Leases(1)		Total Leased Square Feet		Percentage of Leased Square Feet			Total Annualized Rent		Percentage of Total Annualized Rent
Automotive		31		4,412,530		12.1	%	$	17,388,493		12.5	%
Containers & Packaging		18		4,278,904		11.7	%		15,458,583		11.1	%
Industrial Equipment, Component & Metals		29		3,589,712		9.9	%		14,704,932		10.6	%
Air Freight & Logistics		19		3,547,099		9.8	%		12,905,517		9.3	%
Food & Beverages		12		2,929,147		8.0	%		10,689,402		7.7	%
Retail		12		2,551,756		7.0	%		7,993,510		5.7	%
Business Services		10		1,369,823		3.8	%		7,889,170		5.7	%
Office Supplies		10		2,020,973		5.5	%		6,827,580		4.9	%
Building Materials		12		1,660,481		4.6	%		6,043,035		4.3	%
Aerospace & Defense		14		1,387,700		3.8	%		5,826,731		4.2	%
Household Durables		7		1,698,530		4.7	%		5,636,987		4.1	%
Personal Products		6		1,664,466		4.6	%		5,566,635		4.0	%
Healthcare		9		1,123,204		3.1	%		4,837,802		3.5	%
Finance		3		429,045		1.2	%		3,634,612		2.6	%
Technology		6		805,769		2.2	%		2,909,443		2.1	%
Media & Entertainment		3		1,016,876		2.8	%		2,572,954		1.9	%
Non-Profit/Government		6		196,413		0.5	%		1,863,148		1.3	%
Education		3		69,862		0.2	%		572,549		0.4	%
Recreational Goods		2		121,776		0.3	%		258,471		0.2	%
Other		10		1,546,460		4.2	%		5,458,019		3.9	%
Total/Weighted Average		222		36,420,526		100.0	%	$	139,037,573		100.0	%

(1)

A single lease may cover space in more than one building.

Tenants

        Our portfolio of properties has a stable and diversified tenant base. As of December 31, 2013, our properties were 95.6% leased to 191 tenants in a variety of industries, with no single tenant accounting for more than 2.8% and no single industry accounting for more than 12.6% of our total annualized rent. Our 10 largest tenants account for approximately 16.7% of our annualized rent. We intend to continue to maintain a diversified mix of tenants to limit our exposure to any single tenant or industry. As of December 31, 2013, 57% of our tenants (or parents thereof) were publicly rated and 30% were investment grade rated based on annualized rent.

36

        The following table sets forth information about the 10 largest tenants in our portfolio based on total annualized rent as of December 31, 2013.

Tenants	Number of Leases		Total Leased Square Feet		Percentage of Total Leased Square Feet			Total Annualized Rent		Percentage of Total Annualized Rent
Solo Cup Company		1		1,035,249		2.8	%	$	3,809,716		2.7	%
International Paper Company		2		573,323		1.6	%		2,952,291		2.1	%
Bank of America, N.A.		1		318,979		0.9	%		2,404,538		1.8	%
Spencer Gifts, LLC		1		491,025		1.4	%		2,122,404		1.5	%
Jacobson Warehouse Company LLC		2		578,687		1.6	%		2,119,712		1.5	%
Closetmaid Corporation		2		619,466		1.7	%		2,053,400		1.5	%
Stream International Inc.		1		148,131		0.4	%		1,999,769		1.5	%
Armacell, LLC		3		518,838		1.4	%		1,989,527		1.4	%
American Beverage Corp		1		613,200		1.7	%		1,876,392		1.3	%
Archway Marketing Serv., Inc		1		386,724		1.1	%		1,857,989		1.4	%
Total		15		5,283,622		14.6	%	$	23,185,738		16.7	%

Lease Expirations

        As of December 31, 2013, our weighted average in-place remaining lease term was approximately 4.8 years. For the year ended December 31, 2013, we have achieved a 59% tenant retention rate for those tenants whose leases were scheduled to expire in 2013. The following table sets forth a summary schedule of lease expirations for leases in place as of December 31, 2013, plus available space, for each of the 10 calendar years beginning with 2013 and thereafter in our portfolio (dollars in thousands, except per square foot data). The information set forth in the table assumes that tenants exercise no renewal options and no early termination rights.

Year Lease of Expiration	Number of Leases Expiring		Total Rentable Square Feet		Expiring Percentage of Total Square Feet			Total Annualized Rent		Percentage of Total Annualized Rent			Total Annualized Rent per Leased Square Foot
Available		0		1,665,850
MTM(1)		4		71,825		0.2	%	$	196,440		0.1	%	$	2.73
2014(2)		27		2,892,847		7.6	%		11,594,411		8.3	%	$	4.01
2015		30		5,013,856		13.2	%		15,388,346		11.1	%	$	3.07
2016		35		4,634,298		12.2	%		18,719,464		13.5	%	$	4.04
2017		30		5,188,090		13.6	%		20,341,351		14.6	%	$	3.92
2018		31		4,970,706		13.0	%		18,838,839		13.5	%	$	3.79
2019		9		1,834,492		4.8	%		8,837,917		6.4	%	$	4.82
2020		8		2,478,222		6.5	%		9,122,651		6.6	%	$	3.68
2021		14		2,892,038		7.6	%		12,871,530		9.3	%	$	4.45
2022		9		1,238,920		3.2	%		4,710,967		3.4	%	$	3.80
Thereafter		25		5,205,232		13.7	%		18,415,657		13.2	%	$	3.54
Total/Weighted Average		222		38,086,376		95.6	%	$	139,037,573		100.0	%	$	3.82

(1)

Month-to-month leases.

(2)

Four leases containing 190,971 square feet expired on December 31, 2013. These leases are considered occupied on December 31, 2013; therefore, the expirations will not factor into period ending occupancy until 2014.

37

Item 3.    Legal Proceedings

        From time to time, we are a party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of our business. We are not currently a party, as plaintiff or defendant, to any legal proceedings which, 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 our company.

Item 4.    Mine Safety Disclosures

        Not applicable.

PART II.

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 2014 Annual Stockholders' Meeting.

Market Information

        Our common stock has been listed on the NYSE since April 15, 2011 and is traded under the symbol "STAG." The closing share price for our common stock on February 24, 2014, as reported by the NYSE, was $22.98. The following table sets forth, for the periods indicated, the high and low sale prices in dollars on the NYSE for our common stock as well as the dividends declared per share of common stock.

	High		Low		Dividends per common share(1)
Quarter ended December 31, 2013	$	22.45	$	19.28	$	0.30	(2)
Quarter ended September 30, 2013	$	22.32	$	18.76	$	0.30
Quarter ended June 30, 2013	$	24.35	$	19.30	$	0.30
Quarter ended March 31, 2013	$	22.19	$	17.97	$	0.30
Quarter ended December 31, 2012	$	19.07	$	16.01	$	0.27
Quarter ended September 30, 2012	$	16.50	$	14.04	$	0.27
Quarter ended June 30, 2012	$	15.07	$	12.34	$	0.27
Quarter ended March 31, 2012	$	14.17	$	11.44	$	0.26

(1)

On December 18, 2013, our board of directors approved a 5% increase in our annual common stock dividend from the 2013 annual rate of $1.20 per share to $1.26 per share commencing with the payment of the January 2014 common stock dividend to be paid in February 2014.

(2)

On September 24, 2013, our board of directors declared dividends for each month of the fourth quarter of $0.10 per share, which equates to $0.30 per share on a quarterly basis.

Holders of Our Common Stock

        As of February 24, 2014, we had approximately 41 stockholders of record. This figure does not reflect the beneficial ownership of shares held in the nominee name.

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Dividends

        To maintain our qualification as a REIT, we must make annual distributions to our stockholders of at least 90% of our taxable net income (not including net capital gains). We had adopted a policy of paying regular quarterly dividends on our common stock, and we had adopted a policy of paying regular quarterly distributions on the common units of our operating partnership. On August 15, 2013, our board of directors voted to increase the frequency of the payment of dividends on our common stock and common units from quarterly to monthly commencing with the fourth quarter of 2013. Cash distributions have been paid on our common stock and common units since our initial public offering. Dividends are declared at the discretion of our board of directors and depend on actual and anticipated cash from operations, our financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Code and other factors our board of directors may consider relevant.

Common Units and Recent Sales of Unregistered Securities

        During the year ended December 31, 2013, we issued an aggregate of 2,186 shares of common stock in connection with the redemption of 2,186 common units of limited partnership held by certain limited partners of our operating partnership. The shares of common stock issued upon redemption of common units of limited partnership interest were registered with the SEC on our Registration Statement on Form S-3 (No. 333-181291), which was declared effective on May 18, 2012.

        On June 19, 2013, in connection with our acquisition of eight buildings, our operating partnership issued 555,758 common units. The issuance of the common units was effected in reliance upon an exemption from registration provided by Section 4(2) under the Securities Act of 1933, as amended. We relied on the exemption based on representations given by the holders of the common units. Common units may be redeemed for cash or, at our election, our common stock on a one-for-one basis, subject to adjustment, as provided in the operating partnership agreement.

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, the MSCI US REIT Index, and the FTSE NAREIT Equity Industrial Index. The MSCI US REIT Index represents performance of publicly traded REITs while the FTSE NAREIT Equity Industrial Index represents only the performance of our peers, publicly traded industrial REITs. Stockholders' returns over the indicated period are based on historical data and should not be considered indicative of future stockholder returns. The graph covers the period from April 15, 2011 to December 31, 2013 and assumed that $100 was invested in STAG Industrial, Inc. common stock and in each index on April 15, 2011 and that all dividends were reinvested.

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        The actual returns shown on the graph above are as follows:

Index	4/15/2011		6/30/2011		9/30/2011		12/30/2011		3/30/2012		6/29/2012		9/28/2012		12/31/2012		3/28/2013		6/28/2013		9/30/2013		12/31/2013
STAG Industrial, Inc.	$	100.00	$	95.82	$	81.79	$	94.05	$	116.65	$	124.13	$	140.79	$	157.97	$	189.63	$	180.53	$	184.73	$	189.88
S&P 500	$	100.00	$	100.89	$	86.89	$	97.16	$	109.39	$	106.38	$	113.14	$	112.71	$	124.67	$	128.29	$	135.02	$	149.22
MSCI US REIT Index	$	100.00	$	104.01	$	88.90	$	102.48	$	113.48	$	117.74	$	117.74	$	120.69	$	130.43	$	128.37	$	124.51	$	123.67
FTSE NAREIT Equity Industrial Index	$	100.00	$	100.86	$	71.96	$	85.83	$	106.74	$	102.82	$	108.43	$	113.46	$	126.68	$	120.36	$	121.94	$	121.87

        This performance graph shall not be deemed "filed" for purposes of Section 18 of the Exchange Act, or incorporated by reference into any filing by us under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

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Item 6.    Selected Financial Data

        The following sets forth selected financial and operating data for our company on a historical consolidated basis. The following data should be read in conjunction with the Consolidated and Combined Financial Statements and Notes thereto and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included elsewhere in this Annual Report on Form 10-K. The company's selected historical Consolidated Balance Sheet information as of December 31, 2013, December 31, 2012 and December 31, 2011, and the company's selected historical Consolidated Statement of Operations data for the years ended December 31, 2013 and December 31, 2012 and the period from April 20, 2011 to December 31, 2011, have been derived from the audited financial statements of STAG Industrial, Inc. The selected historical Combined Balance Sheet information as of December 31, 2010 and 2009, and the selected historical Combined Statements of Operations data for the period from January 1, 2011 to April 19, 2011 and the years ended December 31, 2010 and 2009, has been derived from the audited Combined Financial Statements of the

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STAG Predecessor Group. The results of operations for all periods presented have been adjusted to reflect discontinued operations:

										STAG Predecessor Group
	STAG Industrial, Inc.
													Year Ended December 31,
							Period from April 20, 2011 to December 31, 2011			Period from January 1, 2011 to April 19, 2011
	Year Ended December 31, 2013			Year Ended December 31, 2012
													2010			2009
Statement of Operations Data:
Revenue
Total revenue	$	133,893		$	84,052		$	41,116		$	7,707		$	25,919		$	27,356
Expenses
Property		24,010			12,841			7,180			2,067			6,122			7,213
General and administrative		17,840			14,549			8,365			484			874			981
Property acquisition costs		3,427			4,218			1,088			—			—			—
Depreciation and amortization		67,556			42,427			21,325			2,345			8,931			9,640
Loss on impairment		—			622			—			—			—			—
Other expenses		621			339			294			—			—			—
Total expenses		113,454			74,996			38,252			4,896			15,927			17,834
Other income (expense)
Interest income		13			19			28			1			16			66
Interest expense		(20,319	)		(16,110	)		(11,829	)		(3,825	)		(12,817	)		(12,913	)
Gain (loss) on interest rate swaps		—			215			2,179			762			(282	)		(1,720	)
Formation transaction costs		—			—			(3,674	)		—			—			—
Offering costs		(27	)		(68	)		(78	)		—			—			—
Loss on extinguishment of debt		—			(929	)		—			—			—			—
Total other income (expense)		(20,333	)		(16,873	)		(13,374	)		(3,062	)		(13,083	)		(14,567	)
Net income (loss) from continuing operations	$	106		$	(7,817	)	$	(10,510	)	$	(251	)	$	(3,091	)	$	(5,045	)
Total Income (loss) attributable to discontinued operations		4,796			(2,382	)		1,283			22			145			(515	)
Net income (loss)	$	4,902		$	(10,199	)	$	(9,227	)	$	(229	)	$	(2,946	)	$	(5,560	)
Less: preferred stock dividends		9,495			6,210			1,018
Less: amount allocated to unvested restricted stockholders		262			122			—
Less: loss attributable to noncontrolling interest after preferred stock dividends		(620	)		(3,720	)		(3,396	)
Net income (loss) attributable to common stockholders	$	(4,235	)	$	(12,811	)	$	(6,849	)
Net loss per share from continuing operations attributable to the common stockholders	$	(0.20	)	$	(0.44	)	$	(0.49	)
Income (loss) per share from discontinued operation attributable to common stockholders		0.10			(0.07	)		0.05
Net loss per share attributable to the common stockholders	$	(0.10	)	$	(0.51	)	$	(0.44	)
Balance Sheet Data (End of Period):
Rental property, before accumulated depreciation	$	1,079,046		$	816,227		$	502,258		$	—		$	210,186		$	210,009
Rental property, after accumulated depreciation		1,007,393			770,052			472,254			—			190,925			195,383
Total assets		1,270,281			1,005,124			624,514			—			211,004			220,116
Total debt		556,091			479,215			296,779			—			207,550			212,132
Total liabilities		595,717			515,664			314,605			—			219,340			221,637
Total equity (deficit)		674,564			489,460			309,909			—			(8,336	)		(1,521	)
Other Data:
Dividend declared per common share	$	1.20		$	1.07		$	0.7257		$	—		$	—		$	—
Cash flow provided by operating activities	$	82,687		$	48,011		$	14,666		$	2,359		$	9,334		$	8,365
Cash flow used in investing activities		(325,231	)		(417,203	)		(114,458	)		(581	)		(2,088	)		(2,040	)
Cash flow (used in) provided by financing activities		230,228			371,700			116,013			(3,070	)		(8,451	)		(6,921	)

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Item 7.    Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion of our financial condition and results of operations should be read in conjunction with our financial statements and related notes included elsewhere in this report. The combined financial information presented for periods on or prior to April 19, 2011 relate solely to the STAG Predecessor Group. The consolidated financial statements for the period April 20, 2011 to December 31, 2011 and the years ended December 31, 2012 and December 31, 2013 include the financial information of our company, our operating partnership and our subsidiaries. Where the "company" is referenced in comparisons of financial results between the year ended December 31, 2012 and any quarter or period ended in 2011, the financial information for such quarter or period prior to April 19, 2011 relates solely to the STAG Predecessor Group, notwithstanding "company" being the reference.

Overview

        We are a fully-integrated, full-service real estate company focused on the acquisition, ownership and management of single-tenant industrial properties throughout the United States.

        As of December 31, 2013, we owned 209 buildings in 34 states with approximately 38.1 million rentable square feet, consisting of 142 warehouse/distribution properties, 47 light manufacturing properties and 20 flex/office properties. We also owned one vacant land parcel adjacent to one of our buildings. Our properties were 95.6% leased to 191 tenants, with no single tenant accounting for more than 2.8% of our total annualized rent and no single industry accounting for more than 12.6% of our total annualized rent.

        We were formed as a Maryland corporation on July 21, 2010 and our operating partnership, of which we, through our wholly owned subsidiary, STAG Industrial GP, LLC, are the sole general partner, was formed as a Delaware limited partnership on December 21, 2009. On April 20, 2011, we completed the formation transactions and became a public company. At December 31, 2013, we owned an 86.65% limited partnership interest in our operating partnership. We are organized and conduct our operations to qualify as a REIT under the Code, and generally are not subject to federal income tax to the extent we distribute our income to our stockholders and maintain our qualification as a REIT.

Factors That May Influence Future Results of Operations

Outlook

        The lack of speculative development generally across the country and specifically in our markets may improve occupancy levels and rental rates in our owned portfolio. In addition, our acquisition activity is expected to enhance our overall financial performance. The continuation of low interest rates combined with the availability of attractively priced properties should allow us to deploy our capital on an attractive "spread investing" basis. In general, the economic environment for our tenants appears to be improving due in particular to the increasing availability of financing accessible by mid-sized companies. Additionally, based on various real estate publications, the outlook for the industrial real estate sector is positive as the United States economy continues to improve and as retailers and manufacturers have made the shortening of the supply chain their top priority for the foreseeable future.

Rental Revenue

        We receive income primarily from rental revenue from our properties. The amount of rental revenue generated by the properties in our portfolio depends principally on our ability to maintain the occupancy rates of currently leased space and to lease currently available space. As of December 31, 2013, our properties were approximately 95.6% leased. The amount of rental revenue generated by us also depends on our ability to maintain or increase rental rates at our properties. Future economic

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downturns or regional downturns affecting our submarkets that impair our ability to renew or re-lease space and the ability of our tenants to fulfill their lease commitments, as in the case of tenant bankruptcies, could adversely affect our ability to maintain or increase rental rates at our properties.

        Certain leases entered into by us contain tenant concessions. Any such rental concessions are accounted for on a straight line basis over the term of the lease.

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. As of December 31, 2013, we had approximately 1.7 million rentable square feet of currently available space in our buildings. Of the 2.8 million square feet of leases that have expired during the year ended December 31, 2013, we have renewed 1.6 million square feet of leases, resulting in a 59% tenant retention rate as of December 31, 2013. As of December 31, 2013, for the period January 1, 2014 through December 31, 2014, one of our top ten tenants based on December 31, 2013 annualized revenue had their only lease expire in 2014. The tenant signed a new lease for five years to retain 47% of the space effective at the existing lease expiration. The base rent will remain flat on a per square foot basis. Subsequent to December 31, 2013, the tenant executed the first amendment to the lease, which allows the tenant to holdover in the entire space through April 30, 2014.

Conditions in Our Markets

        The properties in our portfolio are located in markets throughout the United States. Positive or negative changes in economic or other conditions, adverse weather conditions and natural disasters in these markets may affect our overall performance.

Rental Expenses

        Our rental expenses generally consist of utilities, real estate taxes, management fees, insurance and site repair and maintenance costs. For the majority of our tenants, our rental expenses are controlled, in part, by the triple net provisions in tenant leases. In our triple net leases, the tenant is responsible for all aspects of and costs related to the property and its operation during the lease term, including utilities, taxes, insurance and maintenance costs. However, we also have modified gross leases and gross leases in our property portfolio. The terms of those leases vary and on some occasions we may absorb property related expenses of our tenants. In our modified gross leases, we are responsible for some property related expenses during the lease term, but the cost of most of the expenses is passed through to the tenant for reimbursement to us. In our gross leases, we are responsible for all aspects of and costs related to the property and its operation during the lease term. Our overall performance will be impacted by the extent to which we are able to pass-through rental expenses to our tenants.

Critical Accounting Policies

        The preparation of financial statements in conformity with GAAP requires management to use judgment in the application of accounting policies, including making estimates and assumptions. We base our estimates on historical experience and on various other assumptions believed to be reasonable under the circumstances. These judgments affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. If our judgment or interpretation of the facts and circumstances relating to various transactions had been different, it is possible that different accounting policies would have been applied resulting in a different presentation of our financial statements. From time to time, we evaluate our estimates and assumptions. In the event estimates or assumptions prove to be different from actual results, adjustments are made in subsequent periods to reflect more current information. Below is a discussion of accounting policies that we consider critical in that they may require complex judgment in their application or require estimates about matters that are inherently uncertain.

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Real Estate and Deferred Lease Intangibles

        Real estate investments are carried at cost less accumulated depreciation and amortization. The cost of real estate includes the purchase price of the property and leasehold improvements. Expenditures for maintenance and repairs are expensed as incurred. Significant renovations and betterments that extend the economic useful lives of assets are capitalized.

        We evaluate the carrying value of all tangible and intangible real estate assets held for use for possible impairment when an event or change in circumstance has occurred that indicates their carrying value may not be recoverable. The evaluation includes estimating and reviewing anticipated future undiscounted cash flows to be derived from the asset and the ultimate sale of the asset. If such cash flows are less than the asset's carrying value, an impairment charge is recognized to the extent by which the asset's carrying value exceeds the estimated fair value. Estimating future cash flows is highly subjective and such estimates could differ from actual results.

        For properties considered held for sale, we cease depreciating the properties and value the properties at the lower of depreciated cost or fair value, less costs to dispose. We classify properties as held for sale when all criteria within the FASB's Accounting Standard Codification ("ASC") 360, Property, Plant and Equipment are met.

        We present qualifying assets and liabilities and the results of operations that have been sold, or otherwise qualify as "held for sale," as discontinued operations in all periods presented if the property operations are expected to be eliminated and we will not have significant continuing involvement following the sale. The components of the property's net income (loss) are reflected as discontinued operations include operating results, depreciation and interest expense (if the property is subject to a secured loan).

        Expenditures for tenant improvements, leasehold improvements and leasing commissions are capitalized and amortized or depreciated over the shorter of their useful lives or the terms of each specific lease. Depreciation expense is computed using the straight-line method based on the following useful lives:

Buildings	40 years
Building and land improvements	5 - 20 years
Tenant improvements	Shorter of useful life or terms of related lease

        We evaluate acquisitions to determine if the acquisition represents an asset acquisition or business combination, and we account for all business combinations in accordance with ASC 805, Business Combinations. Upon acquisition of a property, we allocate the purchase price of the property based upon the fair value of the assets and liabilities acquired, which generally consist of land, buildings, tenant improvements and intangible assets including in-place leases, above market and below market leases and tenant relationships, as well as the fair value of debt assumed. We allocate the purchase price to the fair value of the tangible assets of an acquired property by valuing the property as if it were vacant. Acquired above and below market leases are valued based on the present value of the difference between prevailing market rates and the in-place rates measured over a period equal to the remaining term of the lease for above market leases and the initial term plus the term of any below market fixed rate renewal options for below market leases that are considered bargain renewal options. The above market lease values are amortized as a reduction of rental income over the remaining term of the respective leases, and the below market lease values are amortized as an increase to rental income over the remaining initial terms plus the terms of any below market fixed rate renewal options that are considered bargain renewal options of the respective leases.

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        The purchase price is further allocated to in-place lease values and tenant relationships based on our evaluation of the specific characteristics of each tenant's lease and our overall relationship with the respective tenant. The value of in-place lease intangibles and tenant relationships, which are included as components of deferred leasing intangibles, are amortized over the remaining lease term (and expected renewal periods of the respective lease for tenant relationships) as adjustments to depreciation and amortization expense. If a tenant terminates its lease, the unamortized portion of leasing commissions, above and below market leases, the in-place lease value and tenant relationships are immediately written off.

        In determining the fair value of the debt assumed, we discount the spread between the future contractual interest payments and hypothetical future interest payments on mortgage debt based on a current market rate. The associated fair market value debt adjustment is amortized through interest expense over the life of the debt.

        Using information available at the time of acquisition, we allocate the total consideration to tangible assets and liabilities and identified intangible assets and liabilities. We may adjust the preliminary purchase price allocations after obtaining more information about asset valuations and liabilities assumed.

Use of Derivative Financial Instruments

        We record all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk are considered fair value hedges. 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. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. We may enter into derivative contracts that are intended to economically hedge certain of its risks, even though hedge accounting does not apply or we elect not to apply hedge accounting

        In accordance with the FASB's fair value measurement guidance, we made an accounting policy election to measure the credit risk of our derivative financial instruments that are subject to master netting arrangements on a net basis by counterparty portfolio. Credit risk is the risk of failure of the counterparty to perform under the terms of the contract. We minimize the credit risk in an interest rate swap by entering into transactions with high-quality counterparties. Our exposure to credit risk at any point is generally limited to amounts recorded as assets or liabilities on the Consolidated Balance Sheets.

Fair Value of Financial Instruments

        We adopted the fair value measurement provisions for its financial instruments recorded at fair value. The guidance establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

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Revenue Recognition

        All current leases are classified as operating leases and rental revenue is recognized on a straight-line basis over the term of the lease when collectability is reasonably assured. Differences between rental revenue earned and amounts due under the lease are charged or credited, as applicable, to accrued rental revenue. Additional rents from expense reimbursements for insurance, real estate taxes and certain other expenses are recognized in the period in which the related expenses are incurred.

        Early lease termination fees are recorded in rental income on a straight-line basis from the notification date of such termination to the then remaining (not the original) lease term, if any, or upon collection if collection is not reasonably assured.

        We earn revenue from asset management fees, which are included in our Consolidated Statements of Operations in other income. We recognize revenue from asset management fees when the related fees are earned and are realized or realizable.

        By the terms of their leases, certain tenants are obligated to pay directly the costs of their properties' insurance, real estate taxes and certain other expenses and these costs are not reflected in our Consolidated and Combined Financial Statements. To the extent any tenant responsible for these costs under its respective lease defaults on its lease or it is deemed probable that the tenant will fail to pay for such costs, we would record a liability for such obligation. We do not recognize recovery revenue related to leases where the tenant will pay expenses directly for real estate taxes, insurance, ground lease payments, and certain other expenses.

Results of Operations

        The following discussion of our results of operations should be read in conjunction with the Consolidated and Combined Financial Statements and the accompanying footnotes. We consider our same store (as defined below) portfolio to consist of only those buildings owned and operated at the beginning and at the end of both of the applicable periods presented. Same store results are considered to be useful to investors in evaluating our performance because they provide information relating to changes in building-level operating performance without taking into account the effects of acquisitions or dispositions.

Comparison of the year ended December 31, 2013 to the year ended December 31, 2012

        Our results of operations are affected by the acquisition and disposition activity during the 2013 and 2012 periods as described below. On January 1, 2012, we owned 105 buildings including 57 warehouse/distribution buildings, 28 light manufacturing buildings and 20 flex/office buildings. Subsequent to January 1, 2012, we sold five buildings for which the results of operations are included in income (loss) attributable to discontinued operations and are not considered part of our same store portfolio. Therefore, there are 100 buildings which are considered our same store portfolio in the analysis below. Same store occupancy decreased 0.7% to 93.0% as of December 31, 2013 compared to 93.7% as of December 31, 2012. The results of operations from acquisitions relates to the 109 buildings acquired after January 1, 2012 for an aggregate cost of approximately $767.2 million.

        The following table summarizes selected operating information for our same store portfolio and our total portfolio for the years ended December 31, 2013 and December 31, 2012 (dollars in thousands). This table includes a reconciliation from our same store portfolio to our total portfolio by

47

also providing information for the years ended December 31, 2013 and December 31, 2012 with respect to the buildings acquired after January 1, 2012.

	Same Store Portfolio										Acquisitions				Total Portfolio
	Year ended December 31,										Year ended December 31,				Year ended December 31,
	2013		2012		Change			% Change			2013		2012		2013			2012			Change			% Change
Revenue
Operating revenue
Rental income	$	57,664	$	59,270	$	(1,606	)		-2.7	%	$	58,680	$	14,707	$	116,344		$	73,977		$	42,367			57.3	%
Tenant recoveries		9,354		7,419		1,935			26.1	%		6,995		1,344		16,349			8,763			7,586			86.6	%
Other income(1)		283		92		191			207.6	%		24		24		307			116			191			164.7	%
Total operating revenue		67,301		66,781		520			0.8	%		65,699		16,075		133,000			82,856			50,144			60.5	%
Expenses
Operating expenses
Property		7,250		5,333		1,917			35.9	%		3,384		650		10,634			5,983			4,651			77.7	%
Real estate taxes and insurance		6,265		5,491		774			14.1	%		7,111		1,367		13,376			6,858			6,518			95.0	%
Total operating expenses		13,515		10,824		2,691			24.9	%		10,495		2,017		24,010			12,841			11,169			87.0	%
Net operating income(2)	$	53,786	$	55,957	$	(2,171	)		-3.9	%	$	55,204	$	14,058	$	108,990		$	70,015		$	38,975			55.7	%
Other expenses (income)
General and administrative																17,840			14,549			3,291			22.6	%
Asset management fees income																(893	)		(1,196	)		303			-25.3	%
Property acquisition costs																3,427			4,218			(791	)		-18.8	%
Depreciation and amortization																67,556			42,427			25,129			59.2	%
Loss on impairment																—			622			(622	)		0.0	%
Other expenses																621			339			282			83.2	%
Total other expenses (income)																88,551			60,959			27,592			45.3	%
Total expenses																112,561			73,800			38,761			52.5	%
Other income (expense)
Interest income																13			19			(6	)		-31.6	%
Interest expense																(20,319	)		(16,110	)		(4,209	)		26.1	%
Gain on interest rate swaps																—			215			(215	)		0.0	%
Offering costs																(27	)		(68	)		41			0.0	%
Loss on extinguishment of debt																—			(929	)		929			-100.0	%
Total other income (expense)																(20,333	)		(16,873	)		(3,460	)		20.5	%
Discontinued operations
Income (loss) attributable to discontinued operations																(509	)		1,337			(1,846	)		-138.1	%
Loss on impairment attributable to discontinued operations																—			(3,941	)		3,941			-100.0	%
Gain on sales of real estate																5,305			222			5,083			0.0	%
Total income (loss) attributable to discontinued operations																4,796			(2,382	)		7,178			-301.3	%
Net income (loss)															$	4,902		$	(10,199	)	$	15,101			148.1	%
Less: loss attributable to noncontrolling interest after preferred stock dividends																(620	)		(3,720	)		3,100			-83.3	%
Net income (loss) attributable to STAG Industrial, Inc.															$	5,522		$	(6,479	)	$	12,001			-185.2	%

(1)

Other income excludes asset management fee income, which is included below in Other expenses (income) for purposes of calculating net operating income.

(2)

Net operating income excludes the results of discontinued operations in the table above. For a detailed discussion of net operating income, including the reasons management believes net operating income is useful to investors, see "Non-GAAP Financial Measures" below.

Same Store Total Operating Revenue

        Same store operating revenue consists primarily of rental income from our properties, lease termination fees and tenant reimbursements for insurance, real estate taxes and certain other expenses.

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        Same store rental income consisting of base rent, termination income, straight-line rent, and above and below market lease amortization decreased by $1.6 million or 2.7% to $57.7 million for the year ended December 31, 2013 compared to $59.3 million for the year ended December 31, 2012. Same store rental income decreased primarily as a result of vacancies and downtime in between leases resulting in a decrease of revenue of approximately $2.5 million. This decrease was partially offset by approximately $1.0 million of lease expansions and renewals at higher rental rates. There was also a decrease in net above market lease amortization of $0.2 million. Additionally, during the year ended December 31, 2012, we had termination income of approximately $0.3 million and there was no termination income within income from continuing operations during the year ended December 31, 2013.

        Same store tenant recoveries increased by $1.9 million or 26.1% to $9.4 million for the year ended December 31, 2013 compared to $7.4 million for the year ended December 31, 2012. The increase was primarily attributable to one of the properties where a single tenant occupied the building during the year ended December 31, 2012 and the tenant paid the utility expenses and real estate taxes directly to the third parties; therefore, the expenses were not directly paid by us. The tenant vacated during the fourth quarter of 2012 and the same building was occupied by multiple tenants during the year ended December 31, 2013 with leases that require us to pay the utility and real estate taxes expenses and to be reimbursed by the tenant, resulting in an increase of $1.3 million. The remaining net increase was primarily attributable to $0.6 million of increases in real estate tax income related to increased real estate tax rates, changes in leases where tenants paid expenses directly to third parties and now the expenses are being paid by us and recovered from the tenant during the year ended December 31, 2013 compared to the year ended December 31, 2012, and the increases were offset by tenant vacancies.

        Same store other income increased by $0.2 million or 207.6% to $0.3 million for the year ended December 31, 2013 compared to $0.1 million for the year ended December 31, 2012. This was primarily as a result of the reimbursement of makes ready repair costs from tenants that vacated and settlements received in 2013 from prior tenants for reimbursement of damages under the lease agreement.

Same Store Operating Expenses

        Same store operating expenses consist primarily of property operating expenses and real estate taxes and insurance.

        Total same store expenses increased by $2.7 million or 24.9% to $13.5 million for the year ended December 31, 2013 compared to $10.8 million for the year ended December 31, 2012. The increase was primarily attributable to an increase in utilities and real estate taxes of $1.1 million related to one of the properties where a single tenant occupied the building during the year ended December 31, 2012 and the tenant paid the utility expenses directly to the third parties; therefore, the expenses were not directly paid by us. The tenant vacated during the fourth quarter of 2012 and the same building was occupied by multiple tenants during the year ended December 31, 2013 with leases that require us to pay the utility and real estate tax expenses and to be reimbursed by the tenants. Additionally, there was an increase of $0.8 million related to repair and maintenance work completed in preparation of a new tenant at one building. Real estate taxes and utility expenses had a net increase $0.4 million across several properties primarily due to net increases in utility usage as well as utility rates and real estate tax rates. Real estate taxes increased by $0.4 million across several properties primarily due to changes in leases where prior tenants paid the real estate taxes and utilities directly and are directly paid by us.

Total Other Expenses (Income)

        Total other expenses (income) consist of general and administrative expense, asset management fee income, property acquisition costs, depreciation and amortization, and other expenses. General and administrative expense includes non-cash compensation expense related restricted stock, LTIP units, and the OPP. The unrecognized non-cash compensation expense associated with these awards was

49

$8.0 million as of December 31, 2013 and is expected to be recognized over a weighted average period of approximately 3.3 years.

        Total other expenses (income) increased $27.6 million or 45.3% for the year ended December 31, 2013 to $88.6 million compared to $61.0 million for the year ended December 31, 2012. The increase was primarily related to an increase of $25.1 million in depreciation and amortization as a result of the buildings acquired which increased the depreciable asset base. The increase was also attributable to a $3.3 million increase in general and administrative expenses related to the increase in payroll and other costs related to an increased number of employees and increased size of the Company.

Total Other Income (Expense)

        Total other income (expense) consists of interest income, interest expense and loss on extinguishment of debt. Interest expense includes interest paid and accrued during the period as well as adjustments related to amortization of financing costs and amortization of fair market value adjustments associated with the assumption of debt.

        Total other expense increased $3.5 million, or 20.5%, to $20.3 million for the year ended December 31, 2013 compared to $16.9 million for the year ended December 31, 2012. The increase was primarily attributable to a $4.2 million increase in interest expense primarily as a result of the Wells Fargo unsecured term loan entered into on February 14, 2013 and the Bank of America unsecured term (each as defined in Indebtedness Outstanding below) loan entered into on September 10, 2012, which were not outstanding for the majority of 2012. Additionally, during the year ended December 31, 2012, we had a loss on extinguishment of debt of $0.9 million and a partially offsetting gain on an interest rate swap of $0.2 million that matured during 2012.

Total Income (Loss) Attributable to Discontinued Operations

        The total income (loss) attributable to discontinued operations reflects the results of operations related to the sale of five buildings located in Creedmoor, NC, Pittsburgh, PA, Youngstown, OH and Great Bend, KS (two buildings) during 2013 and 2012. The total income (loss) attributable to discontinued operations increased by $7.2 million, which was primarily a result of the gain on sales associated with the Pittsburgh, PA and Creedmoor, NC buildings in the amount of $0.5 million and $4.8 million, respectively, that were recognized during the year ended December 31, 2013. The gain on sales was partially offset by net loss attributable to discontinued operations in the amount of $0.5 million. During the year ended December 31, 2012, we had a loss attributable to discontinued operations of $2.4 million, which was primarily the result of a $3.9 million loss on impairment that was incurred on the two Great Bend, KS properties prior to the disposal in the fourth quarter of 2012 offset by $1.3 million of income from discontinued operations and a gain on sale of approximately $0.2 million from the Youngstown, OH building.

Total Net Income (Loss)

        The total net income (loss) increased by $15.1 million, or 148.1%, to net income of $4.9 million for the year ended December 31, 2013 compared to a net loss of $10.2 million for the year ended December 31, 2012. The increase is attributable to all of the aforementioned factors.

Comparison of year ended December 31, 2012 to the year ended December 31, 2011

        Within the following results of operations, the years ended December 31, 2012 and December 31, 2011 consists of STAG Predecessor Group's operations for the period January 1, 2011 to April 19, 2011 and our operations for the period April 20, 2011 to December 31, 2011 and the year ended December 31, 2012. Because we did not exist before April 20, 2011, and because, as a result of our formation transactions, our company is substantially different from STAG Predecessor Group, we believe this comparison is not meaningful to an analysis of our operations; therefore, a same store analysis is not prepared for the years ended December 31, 2012 and December 31, 2011.

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        The following table summarizes our results of operations for the years ended December 31, 2012 and December 31, 2011 (dollars in thousands):

	Year Ended December 31,
	2012			2011			Change			% Change
Revenue
Rental income	$	73,977		$	42,238		$	31,739			75.1	%
Tenant recoveries		8,763			5,671			3,092			54.5	%
Other income		1,312			914			398			43.5	%
Total revenue		84,052			48,823			35,229			72.2	%
Expenses
Property		5,983			4,777			1,206			25.2	%
General and administrative		14,549			8,687			5,862			67.5	%
Real estate taxes and insurance		6,858			4,470			2,388			53.4	%
Asset management fees		—			162			(162	)		-100.0	%
Property acquisition costs		4,218			1,088			3,130			287.7	%
Depreciation and amortization		42,427			23,670			18,757			79.2	%
Loss on impairment		622			—			622			100.0	%
Other expenses		339			294			45			15.3	%
Total expenses		74,996			43,148			31,848			73.8	%
Other income (expense)
Interest income		19			29			(10	)		-34.5	%
Interest expense		(16,110	)		(15,654	)		(456	)		2.9	%
Gain on interest rate swaps		215			2,941			(2,726	)		-92.7	%
Formation transactions costs		—			(3,674	)		3,674			-1
Offering costs		(68	)		(78	)		10			-12.8	%
Loss on extinguishment of debt		(929	)		—			(929	)		100.0	%
Total other income (expense)		(16,873	)		(16,436	)		(437	)		2.7	%
Discontinued operations
Income attributable to discontinued operations		1,337			976			361			37.0	%
Loss on impairment attributable to discontinued operations		(3,941	)		—			(3,941	)		100.0	%
Gain on sale of real estate		222			329			(107	)		-32.5	%
Total income (loss) attributable to discontinued operations		(2,382	)		1,305			(3,687	)		-282.5	%
Net loss		(10,199	)		(9,456	)		(743	)		7.9	%
Less: loss attributable to noncontrolling interest after preferred stock dividends		(3,720	)		(3,396	)		(324	)		9.5	%
Net loss attributable to STAG Industrial, Inc.	$	(6,479	)	$	(6,060	)	$	(419	)		6.9	%

Revenue

        Total revenue consists primarily of rental income from our properties, lease termination fees, tenant reimbursements for insurance, real estate taxes and certain other expenses, and asset management fees.

        Total revenue increased by $35.2 million, or 72.2%, to $84.1 million for the year ended December 31, 2012 compared to $48.8 million for the year ended December 31, 2011. The increase was

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primarily attributable to additional revenue from the properties contributed to us as part of the formation transactions and the acquisitions of 85 buildings since the formation transactions. Of the $35.2 million increase in revenue, $31.7 million relates to base rental income, $3.1 million relates to tenant recoveries, and $0.4 million relates to an increase in other income, including asset management fee income.

Expenses

        Total expenses increased by $31.8 million, or 73.8%, to $75.0 million for the year ended December 31, 2012 compared to $43.1 million for the year ended December 31, 2011. The increase was primarily attributable to additional expense from the properties contributed to us as part of the formation transactions and the acquisitions of 85 buildings since the formation transactions. General and administrative expenses increased $5.9 million due to the inclusion of salary and other compensation costs following the formation transactions and other administrative costs of being a public company. Additionally, depreciation and amortization increased $18.8 million as a result of the properties acquired in the formation transactions and 85 buildings acquired since the formation transactions which increased the depreciable asset base.

Total Other Income (Expense)

        Total other income (expense) consists of interest income, interest expense and loss on extinguishment of debt. Interest expense includes interest paid and accrued during the period as well as adjustments related to amortization of financing costs and amortization of fair market value adjustments associated with the assumption of debt.

        Total other expense increased $0.4 million, or 2.7%, to $16.9 million for the year ended December 31, 2012 compared to $16.4 million for the year ended December 31, 2011. The increase in other expense was primarily a result of the gain on interest rate swaps decreased by $2.7 million from $2.9 million for the year ended December 31, 2011 to $0.2 million for year ended December 31, 2012 due to the expiration of the related interest rate swap on January 31, 2012. Additionally, the loss on extinguishment of debt of $0.9 million recognized during the year ended December 31, 2012 related to write-off of deferred financing fees in connection with the pay-off of the Wells Fargo Master Loan and the termination of the secured credit facility (as defined below) contributed to the increase in total other expenses. The increase was partially offset by the decrease in formation transaction costs of $3.7 million, which was a one-time expense associated with the initial public offering of the company in 2011.

Total income (loss) attributable to discontinued operations

        Total income (loss) attributable to discontinued operations reflects the results of operations and gain on sale of real estate related to the sale of properties located in Creedmoor, NC, Pittsburgh, PA, Amesbury, MA, Youngstown, OH and Great Bend, KS. The total income attributable to discontinued operations decreased by $3.7 million primarily due to the loss on impairment of $3.9 million that was recognized prior to the sale of Great Bend, KS, which closed on November 30, 2012. The property and intangibles were tested for impairment as of September 30, 2012 utilizing a probability weighted recovery analysis of certain scenarios, and it was determined that the carrying value of the property and intangibles were not recoverable from the estimated future undiscounted cash flows. Accordingly as of September 30, 2012, the property and intangibles were written down to their estimated fair value based on pricing obtained from third party market participants.

Total Net Loss

        Net loss increased by $0.4 million, or 6.9%, to $6.5 million for the year ended December 31, 2012 compared to $6.1 million for the year ended December 31, 2011. The increase is primarily attributable

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to the operations of the properties contributed to us as part of the formation transactions and the acquisitions of 85 buildings since the formation transactions resulting in greater depreciation and amortization. The increase is also attributable to the aforementioned factors above.

Cash Flows

Comparison of the year ended December 31, 2013 to the year ended December 31, 2012

        The following table summarizes our cash flows for the year ended December 31, 2013 and 2012 (dollars in thousands).

	Year Ended December 31,
	2013			2012			Change			% Change
Cash provided by operating activities		82,687		$	48,011		$	34,676			72.2	%
Cash used in investing activities		(325, 231	)		(417,203	)		91,972			22.0	%
Cash provided by financing activities		230,228			371,700			(141,472	)		(38.1	)%

        Net cash provided by operating activities.    Net cash provided by operating activities increased $34.7 million to $82.7 million for the year ended December 31, 2013 compared to $48.0 million for the year ended December 31, 2012. The increase in cash provided by operating activities was primarily attributable to the increase in cash revenue net of expenses due in large part to the acquisition activity. We had net income of $4.9 million for the year ended December 31, 2013 compared to a net loss of $10.2 million for the year ended December 31, 2012, but after adjusting the net loss to reconcile to net cash provided by operating activities (excluding changes in assets and liabilities) the increase is $34.4 million. This is primarily a result of adding back depreciation and amortization of $70.6 million during the year ended December 31, 2013 compared to $43.5 million during the year ended December 31, 2012.

        Net cash used in investing activities.    Net cash used in investing activities decreased by $92.0 million to $325.2 million for the year ended December 31, 2013 compared to $417.2 million for the year ended December 31, 2012. The change is primarily attributable to the acquisition of 39 buildings with an aggregate purchase price of $331.8 million (net of $11.5 million funded by the issuance of common units) during the year ended December 31, 2013 compared to the acquisition of 70 buildings with an aggregate purchase price of $423.9 million during the year ended December 31, 2012.

        Net cash provided by financing activities.    Net cash provided by financing activities decreased $141.5 million to $230.2 million for the year ended December 31, 2013 compared to $371.7 million for the year ended December 31, 2012. The change is attributable to the proceeds of $70.0 million from the sale of the series B preferred stock during the year ended December 31, 2013 and a decrease of $73.2 million in proceeds from sales of common stock in comparison to prior periods. The change is also the result of a net inflow of $77.0 million from mortgage notes payable and borrowings under the unsecured term loans and unsecured credit facility (each as defined below) during the year ended December 31, 2013 compared to a net inflow of $182.6 million during the year ended December 31, 2012. Additionally, the change is also attributable to an increase in dividends and distributions paid of $37.2 million as a result of the increased number of shares and units outstanding as well as a $0.31 increase in the dividend per share and unit paid for the year ended December 31, 2013 compared to the year ended December 31, 2012. The remaining increase is due to a decrease of $2.2 million for payment of loan fees and costs and a decrease of $2.4 million of offering costs for the year ended December 31, 2013 compared to the year ended December 31, 2012.

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Comparison of year ended December 31, 2012 to the year ended December 31, 2011

        The following table summarizes our cash flows for the year ended December 31, 2012 and December 31, 2011 (inclusive of STAG Predecessor Group from the period January 1, 2011 to April, 19, 2011 and STAG Industrial, Inc. from the period April 20, 2011 to December 31, 2011) (dollars in thousands). Because we did not exist before April 20, 2011, and because, as a result of our formation transactions, our company is substantially different from STAG Predecessor Group, we believe this comparison is not meaningful to an analysis of our operations:

	Year Ended December 31,
	2012			2011			Change			% Change
Cash provided by operating activities	$	48,011		$	17,025		$	30,986			182.0	%
Cash used in investing activities		(417,203	)		(115,039	)		(302,164	)		262.7	%
Cash provided by financing activities		371,700			112,943			258,757			229.1	%

        Net cash provided by operating activities.    Net cash provided by operating activities increased $31.0 million to $48.0 million for the year ended December 31, 2012 compared to $17.0 million for the year ended December 31, 2011. The increase in cash provided by operating activities was primarily attributable to the net changes in current assets and liabilities due in large part to the formation transactions and the acquisition of 70 properties during the year ended December 31, 2012.

        Net cash used in investing activities.    Net cash used in investing activities increased by $302.2 million to $417.2 million for the year ended December 31, 2012 compared to $115.0 million for the year ended December 31, 2011. The change is primarily attributable to additions of 70 properties during the year ended December 31, 2012.

        Net cash provided by financing activities.    Net cash provided by financing activities increased $258.8 million to $371.7 million for the year ended December 31, 2012 compared to $112.9 million for the year ended December 31, 2011. The change is primarily attributable to the net proceeds from our sale of common stock, the unsecured credit facility and unsecured term loan (as defined below), and the CMBS Loan (as defined below).

Off Balance Sheet Arrangements

        As of December 31, 2013, we had no off-balance sheet arrangements other than those disclosed in the table under "—Liquidity and Capital Resources—Contractual Obligations" below.

Liquidity and Capital Resources

        On January 22, 2013, we completed an underwritten public offering of 6,284,152 shares of common stock (including 819,672 shares issued pursuant to the full exercise of the underwriters' option) at a public offering price of $18.30 per share. We received net proceeds of $110.1 million, reflecting gross proceeds of $115.0 million net of the underwriters discount of $4.9 million. We also incurred direct offering costs of $0.2 million. The underwriters' discount of $4.9 million and direct offering costs of $0.2 million are reflected as a reduction to additional paid-in capital on our Consolidated Balance Sheet included in this report. We used the proceeds to fully pay down the then outstanding balance on our $200.0 million unsecured corporate revolving credit facility with Bank of America, N.A ("Bank of America") as administrative agent ("unsecured credit facility").

        On April 16, 2013, we completed an underwritten public offering of 2,800,000 shares (including 300,000 shares issued pursuant to the full exercise of the underwriters' option) of 6.625% Series B Cumulative Redeemable Preferred Stock, $0.01 par value per share, at a price to the public of $25.00 per share. We received net proceeds of $67.8 million, reflecting gross proceeds of $70.0 million net of the underwriter discount of $2.2 million. We also incurred direct offering costs of $0.2 million. The

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underwriters' discount of $2.2 million and direct offering costs of $0.2 million are reflected as a reduction to additional paid-in capital on our Consolidated Balance Sheet included in this report. Dividends on the series B preferred stock are payable quarterly in arrears on or about the last day of March, June, September and December of each year. The series B preferred stock ranks senior to our common stock and on parity with our series A preferred stock with respect to dividend rights and rights upon the liquidation, dissolution or winding up of our company. The series B preferred stock has no stated maturity date and is not subject to mandatory redemption or any sinking fund. Generally, we are not permitted to redeem the series B preferred stock prior to April 16, 2018, except in limited circumstances relating to our ability to qualify as a REIT and in certain other circumstances related to a change of control (as defined in the articles supplementary for the series B preferred stock). We used the net proceeds to pay off the outstanding amount due under the unsecured credit facility and to fund acquisitions.

        During the years ended December 31, 2013 and December 31, 2012, we sold 2,672,692 and 298,000 shares of common stock, respectively, under our "at the market" program ("ATM") that commenced on December 14, 2012. During the years ended December 31, 2013 and December 31, 2012 we received net proceeds of $53.9 million and $5.3 million, reflecting gross proceeds of $54.7 million and $5.4 million, net of the sales agents' fees of approximately $0.8 million and $0.1 million, respectively. As of December 31, 2013, there was approximately $14.9 million of common stock available to be sold under the ATM.

        As partial consideration for eight buildings acquired on June 19, 2013, we granted 555,758 common units in the operating partnership with a fair value of approximately $11.5 million. The issuance of the common units was effected in reliance upon an exemption from registration provided by Section 4(2) under the Securities Act of 1933, as amended. We relied on the exemption based on representations given by the holders of the common units. The remaining purchase price of approximately $40.1 million was paid in cash.

        Our short-term liquidity requirements consist primarily of funds to pay for operating expenses and other expenditures directly associated with our buildings, including:

•

interest expense and scheduled principal payments on outstanding indebtedness,

•

funding of property acquisitions under contract,

•

general and administrative expenses, and

•

capital expenditures for tenant improvements and leasing commissions.

        In addition, we require funds for future dividends and distributions to be paid to our common and preferred stockholders and common unit holders in our operating partnership. On August 15, 2013 our board of directors voted to increase the frequency of the payment of our common stock dividend from quarterly to monthly. On September 24, 2013 our board of directors declared dividends on our common stock for each month of the fourth quarter of $0.10 per share, which equates to $0.30 per share on a quarterly basis. The table below sets forth the dividends and distributions that have been

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declared by our board of directors on our common stock and common units during the year ended December 31, 2013:

Amount Declared During 2013	Declaration Date	Per Share		Date Paid
Month Ended December 31	September 24, 2013	$	0.10	January 15, 2014
Month Ended November 30	September 24, 2013		0.10	December 16, 2013
Month Ended October 31	September 24, 2013		0.10	November 15, 2013
Quarter Ended September 30	August 2, 2013		0.30	October 15, 2013
Quarter Ended June 30	May 6, 2013		0.30	July 15, 2013
Quarter Ended March 31	March 1, 2013		0.30	April 15, 2013
Total 2013		$	1.20

        On December 18, 2013, our board of directors approved a 5% increase in our annual common stock dividend from the 2013 annual rate of $1.20 per share to $1.26 per share commencing with the payment of the January 2014 common stock dividend to be paid in February 2014.

        We pay quarterly cumulative dividends on the series A preferred stock at a rate of 9.0% per annum of the $25.00 liquidation preference per share (equivalent to the fixed annual rate of $2.25 per share). The table below sets forth the dividends that have been declared by our board of directors on the series A preferred stock during the year ended December 31, 2013:

Amount Declared During Quarter Ended 2013	Declaration Date	Per Share		Date Paid
December 31	November 1, 2013	$	0.5625	December 31, 2013
September 30	August 2, 2013		0.5625	September 30, 2013
June 30	May 6, 2013		0.5625	July 1, 2013
March 31	March 1, 2013		0.5625	April 1, 2013
Total 2013		$	2.25

        We pay quarterly cumulative dividends on the series B preferred stock at a rate of 6.625% per annum of the $25.00 liquidation preference per share (equivalent to the fixed annual rate of $1.66 per share). The table below sets forth the dividends that have been declared by our board of directors on the series B preferred stock during the year ended December 31, 2013:

Amount Declared During Quarter Ended 2013	Declaration Date	Per Share		Date Paid
December 31	November 1, 2013	$	0.4140625	December 31, 2013
September 30	August 2, 2013		0.4140625	September 30, 2013
June 30 (prorated for April 16, 2013 to June 30, 2013)	May 6, 2013		0.3450500	July 1, 2013
Total 2013		$	1.1731750

        We believe that our liquidity needs will be satisfied through cash flows generated by operations and financing activities. Rental revenue, expense recoveries from tenants, and other income from operations are our principal sources of cash that we use to pay operating expenses, debt service, recurring capital expenditures and the minimum distributions required to maintain our REIT qualification. We seek to increase cash flows from our buildings by maintaining quality standards for our buildings that promote high occupancy rates and permit increases in rental rates while reducing tenant turnover and controlling operating expenses. We believe that our revenue, together with proceeds from building sales and debt financings, will continue to provide funds for our short-term liquidity needs.

        Our long-term liquidity needs consist primarily of funds necessary to pay for acquisitions, non-recurring capital expenditures and scheduled debt maturities. We intend to satisfy our long-term liquidity needs through cash flow from operations, long-term secured and unsecured borrowings, the

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issuance of equity or debt securities, building dispositions, joint venture transactions, or in connection with acquisitions of additional buildings, the issuance of common units in the operating partnership.

Indebtedness Outstanding

        The following table sets forth certain information with respect to the indebtedness outstanding as of December 31, 2013 (dollars in thousands):

Loan	Principal		Fixed/Floating	Rate(1)			Current Maturity
Sun Life(2)	$	3,817	Fixed		6.05	%	Jun-1-2016
Webster Bank(3)		5,834	Fixed		4.22	%	Aug-4-2016
Bank of America unsecured credit facility(4)		80,500	Variable		LIBOR + 1.45	%	Sept-10-2016
Union Fidelity(5)		6,551	Fixed		5.81	%	Apr-30-2017
Webster Bank(6)		3,121	Fixed		3.66	%	May-29-2017
Webster Bank(7)		3,360	Fixed		3.64	%	May-31-2017
Bank of America unsecured term loan(8)		150,000	Variable		LIBOR + 1.40	%	Sept-10-2017
CIGNA-1 facility(9)		58,874	Fixed		6.50	%	Feb-1-2018
CIGNA-2 facility(10)		59,990	Fixed		5.75	%	Feb-1-2018
CIGNA-3 facility(11)		16,879	Fixed		5.88	%	Oct-1-2019
Wells Fargo unsecured term loan(12)		100,000	Variable		LIBOR + 2.15	%	Feb-14-2020
Wells Fargo CMBS Loan(13)		67,165	Fixed		4.31	%	Dec-1-2022
	$	556,091			3.64	%(14)

(1)

Current interest rate as of December 31, 2013. At December 31, 2013, the one-month LIBOR rate was 0.1677%.

(2)

This loan with Sun Life Assurance Company of Canada (U.S.) ("Sun Life") was assumed on October 14, 2011 in connection with the acquisition of the building located in Gahanna, OH. The property is collateral for this loan. Principal outstanding under this loan includes an unamortized fair market value premium of $0.2 million as of December 31, 2013, which is not included in the calculation of the weighted average interest rate.

(3)

This loan with Webster Bank, National Association ("Webster Bank") was entered into on August 4, 2011 in connection with the acquisition of the building located in Norton, MA. The property is collateral for this loan.

(4)

The spread over LIBOR for the Bank of America unsecured credit facility is based on our consolidated leverage. The spread was 1.45% as of December 31, 2013. The borrowing capacity as of December 31, 2013 was $119.3 million, assuming current leverage levels.

(5)

This loan with Union Fidelity Life Insurance Co. ("Union Fidelity") was assumed on July 28, 2011 in connection with the acquisition of the St. Louis, MO building. The property is collateral for this loan. The principal outstanding includes an unamortized fair market value premium of $0.1 million as of December 31, 2013, which is not included in the calculation of the weighted average interest rate.

(6)

This loan with Webster Bank was entered into on May 29, 2012 in connection with the acquisition of the building located in Portland, ME. The property is collateral for this loan.

(7)

This loan with Webster Bank was entered into on May 31, 2012 in connection with the acquisition of a building located in East Windsor, CT. The property is collateral for this loan.

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(8)

The Bank of America unsecured term loan ("Bank of America unsecured term loan") was entered into on September 10, 2012 and subsequently amended on October 7, 2013. The spread over LIBOR is based on our consolidated leverage ratio. The spread was 1.40% as of December 31, 2013. We swapped LIBOR for a fixed rate for $100.0 million of the $150.0 million capacity on the Bank of America unsecured term loan. The swaps were effective beginning on October 10, 2012. For further details refer to "Interest Rate Risk below."

(9)

The Connecticut General Life Insurance Company ("CIGNA") credit facility was originally entered into in July 2010 (the "CIGNA-1 facility") and has various buildings serving as collateral and has no remaining borrowing capacity.

(10)

The CIGNA credit facility was originally entered into in October 2010 (the "CIGNA-2 facility") has various buildings serving as collateral. As of December 31, 2013, we have approximately $2.9 million of borrowing capacity under the CIGNA-2 facility, subject to customary terms and conditions, including underwriting.

(11)

The CIGNA credit facility was originally entered into in July 2011 (the "CIGNA-3 facility") and has various buildings serving as collateral. As of December 31, 2013, we have approximately $47.9 million of borrowing capacity under the CIGNA-3 facility, subject to customary terms and conditions, including underwriting.

(12)

The Wells Fargo Bank, National Association ("Wells Fargo") unsecured term loan was entered into on February 14, 2013, with a borrowing capacity of up to $150 million (the "Wells Fargo unsecured term loan"). Borrowings under the Wells Fargo unsecured term loan bear interest at a floating rate equal to the one-month LIBOR plus a spread based on our consolidated leverage ratio. The spread was 2.15% and the borrowing capacity was $50.0 million as of December 31, 2013, assuming current leverage levels. We swapped LIBOR for a fixed rate for $125.0 million of the $150.0 million capacity on the Wells Fargo unsecured term loan. The interest rate swaps for $25.0 million of the $125.0 million swapped became effective subsequent to December 31, 2013 on February 3, 2014. For further details refer to "Interest Rate Risk" below.

(13)

This loan with Wells Fargo was entered into on November 8, 2012 ("CMBS loan") and is a non-recourse loan with 28 buildings serving as collateral.

(14)

The weighted average interest rate was calculated using the swapped rate for the $200.0 million of the $250.0 million outstanding on the Bank of America unsecured term loan and the Wells Fargo unsecured term loan (collectively, the "unsecured term loans").

        We regularly pursue new financing opportunities to ensure an appropriate balance sheet position. As a result of these dedicated efforts, we are confident in our ability to meet future debt maturities and building acquisition funding needs. We believe that our current balance sheet is in an adequate position at the date of this filing, despite possible volatility in the credit markets.

        The CIGNA-1 facility, CIGNA-2 facility and CIGNA-3 facility contain provisions that cross-default the loans and cross-collateralize the 21 properties held as collateral under each loan. In addition, each of the CIGNA-1 facility, CIGNA-2 facility and CIGNA-3 facility require a 62.5% loan to value (including all acquisition costs) and a debt service coverage ratio of 1.5x, each measured at acquisition, but not as continuing covenants.

        The CMBS loan agreement is a commercial mortgage-backed security that provides for a secured loan. There are 28 properties located in eight states that are collateral for the CMBS loan. Wells Fargo had the right to securitize any portion or the entire CMBS loan in a single asset securitization or a pooled loan securitization, which it completed on December 19, 2012. The operating partnership guarantees the obligations under the CMBS loan.

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        Our debt is subject to certain financial and other covenants. As of December 31, 2013, we were in compliance with the financial covenants in the credit agreement and loan agreements.

Unsecured Credit Facility and Unsecured Term Loans

        Unsecured Credit Facility and Bank of America Unsecured Term Loan:    On September 10, 2012, we closed a credit agreement ("credit agreement") for an unsecured corporate revolving credit facility with Bank of America as administrative agent and Merrill Lynch, Pierce, Fenner & Smith Incorporated as lead arranger ("unsecured credit facility"). The unsecured credit facility provides for a senior unsecured revolving credit facility of up to $200.0 million, with a sublimit of $10.0 million for swing line loans and $10.0 million for letters of credit. Additionally, the unsecured credit facility has an accordion feature that allows us to request an increase in its borrowing capacity to $300.0 million, subject to the satisfaction of certain conditions. The unsecured credit facility will mature on September 10, 2016, subject to a one-year extension option which we may exercise at our election, pursuant to certain terms and conditions, including the payment of an extension fee, contained in the credit agreement. Proceeds from the unsecured credit facility have been and will be used for building acquisitions, working capital requirements and other general corporate purposes. We currently do not intend to use this facility to repay our existing debt obligations upon maturity. The credit agreement also provides for the $150.0 million, five-year Bank of America unsecured term loan with a maturity date of September 10, 2017.

        The amount available for us to borrow under the unsecured credit facility is based on (a) the lesser of (i) 60.0% of the Borrowing Base Values (as defined in the credit agreement) of our buildings that form the borrowing base for the facility, and (ii) the amount that would create a debt service coverage ratio of not less than 1.6 based on a 30-year amortization period, less (b) any other unsecured indebtedness (as defined in the credit agreement) then outstanding.

        Amounts outstanding under the unsecured credit facility and the Bank of America unsecured term loan bear interest at a floating rate equal to, at our election, the one-month Eurodollar Rate or the Base Rate (each as defined in the credit agreement) plus a spread, that depends upon our consolidated leverage ratio. At December 31, 2013, the spread over LIBOR on the unsecured credit facility was 1.45% and the spread over LIBOR on the Bank of America unsecured term loan was 1.40%. The floating rate interest on $100.0 million of the $150.0 million unsecured term loan was fixed utilizing seven interest rate swaps with rates ranging from 0.727% to 0.7975%. These swaps were designated as cash flow hedges of interest rate risk (See "Interest Rate Risk" below for further details).

        On October 7, 2013, the unsecured credit facility and the Bank of America unsecured term loan were amended to reduce the spreads on the one-month Eurodollar Rate and the Base Rate and to reduce the unused fee rates. The amendment was considered a modification of terms; therefore, no deferred financing fees were expensed as a loss on extinguishment of debt. The following table

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compares the original terms to the amended terms of the unsecured credit facility and the Bank of America unsecured term loan.

	Original Terms	Amended Terms
Applicable Rates	Unsecured Credit Facility and Unsecured Term Loan	Unsecured Credit Facility	Unsecured Term Loan
Eurodollar Rate(1):	one month-LIBOR + 165.0 bps - 225.0 bps	one month-LIBOR + 145.0 bps - 205.0 bps	one month-LIBOR + 140.0 bps - 200.0 bps
Base Rate(1):	Base rate + 65.0 bps - 125.0 bps	Base rate + 45.0 bps - 105.0 bps	Base rate + 40.0 bps - 100.0 bps
Unused Fees:	<50%, 35.0 bps; > 50%, 25.0 bps	<50%, 25.0 bps; > 50%, 20.0 bps	—

(1)

The spread over the applicable rate is based on our consolidated leverage ratio.

        Wells Fargo Unsecured Term Loan:    On February 14, 2013, we entered into a seven-year term loan agreement ("loan agreement") with Wells Fargo Bank and certain other lenders. The loan agreement provides for the Wells Fargo unsecured loan in the original principal amount of up to $150.0 million. Additionally, the Wells Fargo unsecured term loan has a feature that allows us to request an increase in total commitments of up to $250.0 million, subject to certain conditions. Unless otherwise terminated pursuant to the terms of the loan agreement, the Wells Fargo unsecured term loan will mature on February 14, 2020.

        The amount available for us to borrow under the Wells Fargo unsecured term loan is based on (a) the lesser of (i) 60% of the Borrowing Base Values (as defined in the loan agreement) of our buildings that form the borrowing base of the Wells Fargo unsecured term loan, and (ii) the amount that would create a debt service coverage ratio of not less than 1.6 based on a 30-year amortization period, less (b) any other unsecured indebtedness (as defined in the loan agreement) then outstanding.

        Borrowings under the Wells Fargo unsecured term loan bear interest at a floating rate equal to, at our election, the Eurodollar Rate or the Base Rate (each as defined in the loan agreement) plus a spread. The spread depends upon our consolidated leverage ratio and ranges from 2.15% to 2.70% for Eurodollar Rate based borrowings and from 1.15% to 1.70% for Base Rate based borrowings.

        As of December 31, 2013, the spread over LIBOR on the Wells Fargo unsecured term loan was 2.15% and the floating rate interest on the entire outstanding principal balance was fixed utilizing three interest rate swaps with rates from 1.33% to 1.703%. These swaps were designated as cash flow hedges of interest rate risk (See "Interest Rate Risk" below for further details). We also pay customary fees and expense reimbursements, including an unused fee equal to 0.35% of the unused portion of the Wells Fargo unsecured term loan, which is paid monthly in arrears. The Wells Fargo unsecured term loan has the following prepayment fees:

If prepayment occurs:	Prepayment Fee:
On or before the first anniversary of the closing date	3% of the principal amount of loan prepaid.
After the first anniversary of the closing date but on or before the second anniversary of the closing date	2% of the principal amount of loan prepaid.
After the second anniversary of the closing date but on or before the third anniversary of the closing date	1% of the principal amount of loan prepaid.
Thereafter	0

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        Financial Covenants:    Our ability to borrow under the unsecured credit facility and the unsecured term loans is subject to our ongoing compliance with a number of customary financial covenants, including:

•

a maximum consolidated leverage ratio of not greater than 0.60:1.00;

•

a maximum secured leverage ratio of not greater than 0.45:1.00;

•

a maximum unencumbered leverage ratio of not greater than 0.60:100;

•

a maximum secured recourse debt ratio of not greater than 7.5%;

•

a minimum fixed charge ratio of not less than 1.50 to 1.00;

•

a minimum tangible net worth covenant test; and

•

various thresholds on company level investments.

        The unsecured credit facility and unsecured term loans contain financial and operating covenants and restrictions. We were in compliance with all such restrictions and financial covenants as of December 31, 2013. In the event of a default related to the financing and operating covenants, our dividend distributions are limited to the minimum amount necessary for us to maintain our status as a REIT.

        Events of Default:    The 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 covenants contained in the documents evidencing the unsecured credit facility and the unsecured term loans, cross- defaults to other material debt and bankruptcy or other insolvency events.

        The company and certain of our subsidiaries guarantee the obligations under the unsecured credit facility and unsecured term loans.

Contractual Obligations

        The following table reflects our contractual obligations as of December 31, 2013, specifically our obligations under long-term debt agreements and ground lease agreements (dollars in thousands):

	Payments by Period
Contractual Obligations(1)(2)	Total		2014		2015 - 2016		2017 - 2018		Thereafter
Principal payments(3)	$	555,803	$	4,447	$	98,465	$	278,883	$	174,008
Interest payments—fixed rate debt(4)(5)		94,116		18,509		36,186		24,691		14,730
Operating leases and ground leases(4)		15,177		1,134		2,634		2,163		9,246
Other(4)(6)		525		150		300		75		—
Total	$	665,621	$	24,240	$	137,585	$	305,812	$	197,984

(1)

From time-to-time in the normal course of our business, we enter into various contracts with third parties that may obligate us to make payments, such as maintenance agreements at our buildings. Such contracts, in the aggregate, do not represent material obligations, are typically short-term and cancellable within 90 days and are not included in the table above.

(2)

The terms of the loan agreements for each of the CIGNA-1 facility, CIGNA-2 facility and CIGNA-3 facility also stipulate that general reserve escrows be funded monthly in an amount equal to eight basis points of the principal of the loans outstanding at the time. Additionally, the CMBS Loan calls for a monthly leasing escrow payment of approximately $0.1 million and the

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balance of the reserve is capped at $2.1 million. The funding of these reserves is not included in the table above.

(3)

The total payments do not include approximately $0.3 million of unamortized fair market value premium associated with two loans assumed (the Sun Life loan and the Union Fidelity loan).

(4)

Not included on our Consolidated Balance Sheets included in this report.

(5)

Amounts include interest rate payments on the $225.0 million of the $250.0 million unsecured term loans that have been swapped to a fixed rate.

(6)

Amounts relate to a fee paid to the affiliates of Columbus Nova Real Estate Acquisition Group, Inc. ("Columbus Nova"). We entered into on agreement with Columbus Nova to source sale leaseback transactions for potential acquisition.

Interest Rate Risk

        ASC 815, Derivatives and Hedging, requires us to recognize all derivatives on the balance sheet at fair value. 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. If the derivative is designated as a hedge, depending on the nature of the hedge, changes in the fair value of derivatives are either offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or recognized in other comprehensive loss, which is a component of equity. The ineffective portion of a derivative's change in fair value is immediately recognized in earnings.

        On September 14, 2012, we commenced a program of utilizing designated derivatives to hedge the variable cash flows associated with a portion of the Bank of America unsecured term loan. We entered into seven interest rate swap agreements for notional amounts varying from $10.0 million to $25.0 million with a total notional amount of $100.0 million with an effective date of October 10, 2012. The swaps convert the one-month LIBOR rate on $100.0 million of the $150.0 million Bank of America unsecured term loan due on September 10, 2017, from a variable rate of one-month LIBOR plus a spread of 1.40% to 2.00% (spreads as of December 31, 2013) based on our consolidated leverage ratio to a fixed rate ranging from 0.727% and 0.7975% plus a spread of 1.40% to 2.00% (potential spreads as of December 31, 2013) based on our consolidated leverage ratio. As of December 31, 2013, the spread on the Bank of America unsecured term loan was 1.40%.

        On March 1, 2013, we entered into an interest rate swap agreement for notional amount of $25.0 million with an effective date of March 1, 2013 that converts the one-month LIBOR rate on the then $25.0 million outstanding balance of the $150.0 million Wells Fargo unsecured term loan from a variable rate of one-month LIBOR plus a spread of 2.15% to 2.70% based on our consolidated leverage ratio to a fixed rate of 1.33% plus a spread of 2.15% to 2.70% based on our consolidated leverage ratio. This swap was designated as a cash flow hedge of interest rate risk.

        On June 13, 2013, we entered into two interest rate swap agreements for notional amounts of $50.0 million and $25.0 million with effective dates of July 1, 2013 and August 1, 2013 that convert the one-month LIBOR rate on the Wells Fargo Unsecured Term Loan from a variable rate of one-month LIBOR plus a spread of 2.15% to 2.70% based on our consolidated leverage ratio to a fixed rate of 1.681% and 1.703%, respectively, plus a spread of 2.15% to 2.70% based on our consolidated leverage ratio. These swaps were designated as cash flow hedges of interest rate risk.

        On September 30, 2013, we entered into an interest rate swap agreement for a notional amount of $25.0 million with an effective date of February 3, 2014 that will fix the one-month LIBOR rate on a future draw on the Wells Fargo Unsecured Term Loan. The swap converts the one-month LIBOR rate from a variable rate of one-month LIBOR plus a spread of 2.15% to 2.70% based on our consolidated leverage ratio to a fixed rate of 1.9925% plus a spread of 2.15% to 2.70% based on our consolidated

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leverage ratio. As of December 31, 2013, the spread on the Wells Fargo unsecured term loan was 2.15%.

        The aforementioned 11 swaps were all designated as cash flow hedges of interest rate risk, and all are valued as level 2 financial instruments. As of December 31, 2013, the fair values of all of our interest rate swaps were in an asset position of $3.9 million. As of December 31, 2012, the swaps were in a liability position of $0.5 million. The increase in value was due to rising interest rates in addition to the four aforementioned swaps that were entered into during the year ended December 31, 2013.

        As of December 31, 2013, we had $330.5 million of debt with interest at a variable rate. Of the $330.5 million of variable rate debt, interest on $200.0 million of the $250.0 million unsecured term loans has been fixed with swaps as discussed above. The remaining $130.5 million of variable rate debt is related to the Bank of America unsecured term loan and Bank of America unsecured credit facility, which was priced at one-month LIBOR plus 1.40% and one-month LIBOR plus 1.45%, respectively, as of December 31, 2013. To the extent interest rates continue to increase, interest costs on our variable rate debt also will increase, which could adversely affect our cash flow and our ability to pay principal and interest on our debt and our ability to make distributions to our security holders. From time to time, we may enter into interest rate swap agreements and other interest rate hedging contracts, including swaps, caps and floors. 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.

Inflation

        The majority of our leases is either triple net or provide for tenant reimbursement for costs related to real estate taxes and operating expenses. In addition, most of the leases provide for fixed rent increases. We believe that inflationary increases may be partially offset by the contractual rent increases and tenant payment of taxes and expenses described above. We do not believe that inflation has had a material impact on our historical financial position or results of operations.

Non-GAAP Financial Measures

        In this report, we disclose and discuss funds from operations ("FFO") and net operating income ("NOI"), which meet the definition of "non-GAAP financial measure" as set forth in Item 10(e) of Regulation S-K promulgated by the SEC. As a result we are required to include in this report a statement of why management believes that presentation of these measures provide useful information to investors.

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 or net loss in accordance with GAAP, as presented in our Consolidated and Combined Financial Statements included in this report.

        We calculate FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts ("NAREIT"). FFO represents net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable operating buildings, impairment write-downs of depreciable real estate, real estate related depreciation and amortization (excluding amortization of deferred financing costs and fair market value of debt adjustment) and after adjustments for unconsolidated partnerships and joint ventures.

        Management uses FFO as a supplemental performance measure because, in excluding real estate related depreciation and amortization and gains and losses from building dispositions, it provides a

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performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. We also believe that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare our operating performance with that of other REITs.

        However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our buildings that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary maintain the operating performance of our buildings, all of which have real economic effects and could materially impact our results from operations, the utility of FFO as a measure of our performance is limited. Other equity REITs may not calculate FFO in accordance with the NAREIT definition as we do, and, accordingly, our FFO may not be comparable to such other REITs' FFO. FFO should not be used as a measure of our liquidity, and is not indicative of funds available for our cash needs, including our ability to pay dividends.

        The following table sets forth a reconciliation of our FFO attributable to common stockholders and unit holders for the periods presented to net income (loss), the nearest GAAP equivalent (in thousands):

	STAG Industrial, Inc.									STAG Predecessor Group
	Year ended December 31, 2013			Year ended December 31, 2012			Period from April 20, 2011 to December 31, 2011			Period from January 1, 2011 to April 19, 2011
Net Income (loss)	$	4,902		$	(10,199	)	$	(9,227	)	$	(229	)
Depreciation and amortization		70,597			43,473			22,794			2,459
Loss on impairment		—			4,563			—			—
Gain on sales of real estate		(5,305	)		(222	)		(329	)		—
FFO	$	70,194		$	37,615		$	13,238		$	2,230
Preferred stock dividends		(9,495	)		(6,210	)		(1,018	)		—
Amount allocated to unvested restricted stockholders		(262	)		(122	)		—			—
FFO attributable to common stockholders and unit holders	$	60,437		$	31,283		$	12,220		$	2,230

Net Operating Income

        We consider NOI to be an appropriate supplemental performance measure to net income because we believe it helps investors and management understand the core operations of our buildings. NOI is defined as rental revenue, including reimbursements, less property expenses and real estate taxes and insurance, which excludes depreciation, amortization, general and administrative expenses, interest expense, interest income, gain on interest rate swaps, asset management fee income, property acquisition costs, and other expenses. NOI should not be viewed as an alternative measure of our financial performance since it excludes expenses which could materially impact our results of operations. Further, our NOI may not be comparable to that of other real estate companies, as they may use different methodologies for calculating NOI.

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        The following table sets forth a reconciliation of our NOI for the periods presented to net loss, the nearest GAAP equivalent (in thousands):

	STAG Industrial, Inc.									STAG Predecessor Group
	Year ended December 31, 2013			Year ended December 31, 2012			Period from April 20, 2011 to December 31, 2011			Period from January 1, 2011 to April 19, 2011
Net income (loss)	$	4,902		$	(10,199	)	$	(9,227	)	$	(229	)
Asset management fee income		(893	)		(1,196	)		(877	)		—
General and administrative		17,840			14,549			8,365			501
Property acquisition costs		3,427			4,218			1,088			—
Depreciation and amortization		70,597			43,473			22,794			2,459
Interest income		(13	)		(19	)		(28	)		(1	)
Interest expense		20,319			16,269			12,289			4,136
Gain on interest rate swaps		—			(215	)		(2,179	)		(762	)
Offering costs		27			68			78			—
Loss on impairment		—			4,563			—			—
Loss on extinguishment of debt		—			929			—			—
Other expenses		621			339			294			—
Gain on sales of real estate		(5,305	)		(222	)		(329	)		—
Net Operating Income(1)	$	111,522		$	72,557		$	32,268		$	6,104

(1)

Includes the results of discontinued operations. For the years ended December 31, 2013 and 2012, excluding the results of discontinued operations, NOI was approximately $109.0 million and $70.0 million, respectively.

Item 7A.    Quantitative and Qualitative Disclosures about Market Risk

        Our future income, cash flows and fair values relevant to financial instruments are dependent upon prevailing market interest rates. Market risk refers to the risk of loss from adverse changes in market prices and interest rates. The primary market risk we are exposed to is interest rate risk. We 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, 2013, we had $80.5 million outstanding under the unsecured credit facility and $250.0 million of borrowings outstanding under the unsecured term loans bearing interest at a variable rate. Of the $250.0 million outstanding on the unsecured term loans, $200.00 million is subject to interest rate swaps. The remaining $50.0 million is related to the Bank of America unsecured term loan, which was priced at one-month LIBOR plus 1.40% as of December 31, 2013. To the extent we undertake variable rate indebtedness, if interest rates increase, then so will the interest costs on our unhedged variable rate debt, which could adversely affect our cash flow and our ability to pay principal and interest on our debt and our ability to make distributions to our security holders. Further, rising interest rates could limit our ability to refinance existing debt when it matures or significantly increase our future interest expense. From time to time, we enter into interest rate swap agreements and other interest rate hedging contracts, including swaps, caps and floors. While these agreements are intended to lessen the impact of rising interest rates on us, they also expose us to the risk that the other parties to the agreements will not perform, we could incur significant costs associated with the settlement of the agreements, the agreements will be unenforceable and the underlying transactions will fail to qualify as highly-effective cash flow hedges under guidance included in ASC 815, Derivatives and Hedging. In addition, an increase in interest rates could decrease the amounts third-parties are willing

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to pay for our assets, thereby limiting our ability to change our portfolio promptly in response to changes in economic or other conditions. If interest rates increased by 100 basis points and assuming we had an outstanding balance of $80.5 million on the unsecured credit facility and $50.0 million on the unsecured term loans (the portion of outstanding amounts at December 31, 2013 not fixed by interest rate swaps) for the full year ended December 31, 2013, our interest expense would have increased by $1.3 million for the year ended December 31, 2013.

        As of December 31, 2013, approximately $425.3 million of our consolidated borrowings bore interest at fixed rates (including $200.0 million of swapped interest rates under the unsecured term loan), as shown in the table below (dollars in thousands):

	2014			2015			2016			2017			2018			Thereafter			Total			Fair Value
	(dollars in thousands)
Debt
Fixed rate(1)	$	4,447		$	4,688		$	13,277		$	115,506		$	113,377		$	174,008		$	425,303		$	425,079
Average interest rate on fixed rate debt		5.26	%		5.27	%		5.03	%		2.53	%		6.09	%		4.13	%		4.27	%
Variable rate		—			—			80,500			50,000			—			—			130,500			130,500
Total debt	$	4,447		$	4,688		$	93,777		$	165,506		$	113,377		$	174,008		$	555,803		$	555,579

(1)

Amounts include variable interest rate payments on the $200.0 million of the $250.0 million unsecured term loans that have been swapped to a fixed rate.

        As of December 31, 2013, we were party to the interest rate swaps shown in the table below (dollars in thousands) with a total fair value asset of $3.9 million.

Interest Rate Derivative	Trade Date	Notional Amount			Fixed Interest Rate			Variable Interest Rate	Maturity Date
Interest rate swap	Sept-14-2012	$	10,000	(1)		0.7945	%	One-month LIBOR	September 10, 2017
Interest rate swap	Sept-14-2012	$	10,000	(1)		0.7945	%	One-month LIBOR	September 10, 2017
Interest rate swap	Sept-14-2012	$	10,000	(1)		0.7945	%	One-month LIBOR	September 10, 2017
Interest rate swap	Sept-14-2012	$	10,000	(1)		0.7945	%	One-month LIBOR	September 10, 2017
Interest rate swap	Sept-14-2012	$	10,000	(1)		0.7975	%	One-month LIBOR	September 10, 2017
Interest rate swap	Sept-20-2012	$	25,000	(1)		0.7525	%	One-month LIBOR	September 10, 2017
Interest rate swap	Sept-24-2012	$	25,000	(1)		0.727	%	One-month LIBOR	September 10, 2017
Interest rate swap	March-1-2013	$	25,000	(2)		1.33	%	One-month LIBOR	February 14, 2020
Interest rate swap	June-13-2013	$	25,000	(2)		1.703	%	One-month LIBOR	February 14, 2020
Interest rate swap	June-13-2013	$	50,000	(2)		1.681	%	One-month LIBOR	February 14, 2020
Interest rate swap	Sept-30-2013	$	25,000	(2)		1.9925	%	One-month LIBOR	February 14, 2020

(1)

Fixes the interest rate of the Bank of America unsecured term loan

(2)

Fixes the interest rate of the Wells Fargo unsecured term loan

        We record all derivatives on the balance sheet at fair value. The fair value of the swap depends heavily on the current market fixed rate, the corresponding term structures of variable rates and the expectation of changes in future variable rates. As expectations of future variable rates increase, the market value of the interest rate swap increases. As of December 31, 2013, all of our interest rate swaps were effectively hedged; therefore, the changes in the fair value of derivatives was recorded in accumulated other comprehensive income (loss) and will be subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the year ended December 31, 2013, we did not record any hedge ineffectiveness related to the hedged derivatives.

        No assurance can be given that our hedging activities will have the desired beneficial effect on our results of operations or financial condition.

66

        Interest risk amounts are our management's estimates and were determined by considering the effect of hypothetical interest rates on our financial instruments. These analyses do not consider the effect of any change in overall economic activity that could occur in that environment. Further, in the event of a change of that magnitude, we may take actions to further mitigate our exposure to the change. However, due to the uncertainty of the specific actions that would be taken and their possible effects, these analyses assume no changes in our financial structure.

Item 8.    Financial Statements and Supplementary Data

        The required response under this Item is submitted in a separate section of this report. See Index to Consolidated and Combined Financial Statements on page F-1.

Item 9.    Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

        None.

Item 9A.    Controls and Procedures

Evaluation of Disclosure Controls and Procedures

        As required by SEC Rule 13a-15(b), we have evaluated, under the supervision of and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act, as of December 31, 2013. Based on the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures for the periods covered by this report were effective to provide reasonable assurance that information required to be disclosed by our company in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Management's Report on Internal Control Over Financial Reporting

        Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act. Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control—Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission in 1992. Based on our evaluation under the framework in Internal Control—Integrated Framework (1992), our management concluded that our internal control over financial reporting was effective as of December 31, 2013.

        The effectiveness of our internal control over financial reporting as of December 31, 2013 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report, which appears on page F-2 of this Annual Report on Form 10-K.

Changes in Internal Controls

        There was no change to our internal control over financial reporting during the fourth quarter ended December 31, 2013 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

67

Item 9B.    Other Information

        As of the quarter ended December 31, 2013, all items required to be disclosed under Form 8-K were reported under Form 8-K.

Additional Material Federal Income Tax Considerations

        The following is a summary of additional material federal income tax considerations with respect to the ownership of our stock. This summary supplements and should be read together with the discussions under "Material Federal Income Tax Considerations" in the prospectus dated May 16, 2012 and filed as part of a registration statement on Form S-3 (No. 333-181290) and in the prospectus dated May 8, 2013 and filed as part of a registration statement on Form S-3 (No. 333-188465).

Recent Legislation

        Pursuant to recently enacted legislation, as of January 1, 2013, (1) the maximum tax rate on "qualified dividend income" received by U.S. stockholders taxed at individual rates is 20%, (2) the maximum tax rate on long-term capital gain applicable to U.S. stockholders taxed at individual rates is 20%, and (3) the highest marginal individual income tax rate is 39.6%. Pursuant to such legislation, the backup withholding rate remains at 28%. We urge you to consult your tax advisors regarding the impact of this legislation on the purchase, ownership and sale of our stock.

Taxation of Taxable U.S. Stockholders

        For payments after June 30, 2014, a U.S. withholding tax at a 30% rate will be imposed on dividends paid on our stock received by U.S. stockholders who own their stock through foreign accounts or foreign intermediaries if certain disclosure requirements related to U.S. accounts or ownership are not satisfied. In addition, if those disclosure requirements are not satisfied, a U.S. withholding tax at a 30% rate will be imposed on proceeds from the sale of our stock received after December 31, 2016 by U.S. stockholders who own their stock through foreign accounts or foreign intermediaries. We will not pay any additional amounts in respect of any amounts withheld.

Taxation of Non-U.S. Stockholders

        For payments after June 30, 2014, a U.S. withholding tax at a 30% rate will be imposed on dividends paid on our stock received by certain non-U.S. stockholders if they held our stock through foreign entities that fail to meet certain disclosure requirements related to U.S. persons that either have accounts with such entities or own equity interests in such entities. In addition, if those disclosure requirements are not satisfied, a U.S. withholding tax at a 30% rate will be imposed on proceeds from the sale of our stock received after December 31, 2016 by certain non-U.S. stockholders. If payment of withholding taxes is required, non-U.S. stockholders that are otherwise eligible for an exemption from, or reduction of, U.S. withholding taxes with respect of such dividends and proceeds will be required to seek a refund from the Internal Revenue Service to obtain the benefit or such exemption or reduction. We will not pay any additional amounts in respect of any amounts withheld.

68

PART III.

Item 10.    Directors, Executive Officers and Corporate Governance

        The information required by Item 10 will be included in the Proxy Statement to be filed relating to our 2014 Annual Meeting of Stockholders and is incorporated herein by reference.

Item 11.    Executive Compensation

        The information required by Item 11 will be included in the Proxy Statement to be filed relating to our 2014 Annual Meeting of Stockholders and is incorporated herein by reference.

Item 12.    Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

        The information required by Item 12 will be included in the Proxy Statement to be filed relating to our 2014 Annual Meeting of Stockholders and is incorporated herein by reference.

Item 13.    Certain Relationships and Related Transactions, and Director Independence

        The information required by Item 13 will be included in the Proxy Statement to be filed relating to our 2014 Annual Meeting of Stockholders and is incorporated herein by reference.

Item 14.    Principal Accountant Fees and Services

        The information required by Item 14 will be included in the Proxy Statement to be filed relating to our 2014 Annual Meeting of Stockholders and is incorporated herein by reference.

69

PART IV.

Item 15.    Exhibits and Financial Statement Schedules

1.

Consolidated and Combined Financial Statements

The financial statements listed in the accompanying Index to Consolidated and Combined Financial Statements on page F-1 are filed as a part of this report.

2.

Financial Statement Schedules

The financial statement schedules required by this Item is filed with this report and is listed in the accompanying Index to Consolidated and Combined Financial Statements on page F-1. All other financial statement schedules are not applicable.

3.

Exhibits

        The following exhibits are filed as part of this report:

Exhibit Number		Description of Document
	3.1	Articles of Amendment and Restatement of STAG Industrial, Inc. (including all articles of amendment and articles supplementary)(13)
	3.2	Amended and Restated Bylaws of STAG Industrial, Inc.(4)
	4.1	Form of Common Stock Certificate of STAG Industrial, Inc.(1)
	4.2	Form of Certificate for the 9.0% Series A Cumulative Redeemable Preferred Stock of STAG Industrial, Inc.(9)
	4.3	Form of Certificate for the 6.625% Series B Cumulative Redeemable Preferred Stock of STAG Industrial, Inc.(14)
	10.1	Amended and Restated Agreement of Limited Partnership of STAG Industrial Operating Partnership, L.P.(5)
	10.2	First Amendment to the Amended and Restated Agreement of Limited Partnership of STAG Industrial Operating Partnership, L.P.(8)
	10.3	Second Amendment to the Amended and Restated Agreement of Limited Partnership of STAG Industrial Operating Partnership, L.P.(15)
	10.4	2011 Equity Incentive Plan(3)*
	10.5	Amendment to the 2011 Equity Incentive Plan(16)*
	10.6	2011 Outperformance Program(7)*
	10.7	Form of LTIP Unit Agreement(3)*
	10.8	Employment Agreement with Benjamin S. Butcher, dated April 20, 2011(5)*
	10.9	Employment Agreement with Gregory W. Sullivan, dated April 20, 2011(5)*
	10.10	Employment Agreement with Stephen C. Mecke, dated April 20, 2011(5)*
	10.11	Employment Agreement with Kathryn Arnone, dated April 20, 2011(5)*
	10.12	Employment Agreement with David G. King, dated April 20, 2011(5)*
	10.13	Form of Indemnification Agreement between STAG Industrial, Inc. and its directors and officers(2)*

70

Exhibit Number		Description of Document
	10.14	Registration Rights Agreement, dated April 20, 2011, by and among STAG Industrial, Inc., STAG Industrial Operating Partnership, L.P. and the persons named therein(5)
	10.15	Voting Agreement Termination Agreement, by and among STAG Industrial, Inc., STAG Industrial Operating Partnership, L.P. and the persons named therein(17)
	10.16	Master Loan Agreement, dated as of July 9, 2010, by and among STAG GI Investments Holdings, LLC and Connecticut General Life Insurance Company(1)
	10.17	Master Loan Agreement, dated as of October 12, 2010, by and among STAG GI Investments Holdings, LLC and Connecticut General Life Insurance Company(6)
	10.18	Master Loan Agreement, dated as of July 8, 2011, by and among STAG GI Investments Holdings, LLC and Connecticut General Life Insurance Company(6)
	10.19	Services Agreement between STAG Industrial Management, LLC and STAG Manager II, LLC, as amended
	10.20	Services Agreement between STAG Industrial Management, LLC and STAG Manager III, LLC(5)
	10.21	Credit Agreement, dated as of September 10, 2012, by and among STAG Industrial Operating Partnership, L.P., STAG Industrial, Inc., Bank of America, N.A. and the other lenders party thereto(10)
	10.22	First Amendment to Credit Agreement, dated as of February 13, 2013, by and among STAG Industrial Operating Partnership, L.P., STAG Industrial, Inc., Bank of America, N.A. and the other lenders party thereto(18)
	10.23	Second Amendment to Credit Agreement, dated as of October 7, 2013, by and among STAG Industrial Operating Partnership, L.P., STAG Industrial, Inc., Bank of America, N.A. and the other lenders party thereto(19)
	10.24	Real Estate Purchase and Sale Agreement, dated as of August 9, 2012, among STAG Industrial Holdings, LLC and the sellers identified therein, as amended(10)
	10.25	Loan Agreement, dated as of November 8, 2012, by and among Borrowers (as defined therein) and Wells Fargo Bank, National Association, as Lender(11)
	10.26	Term Loan Agreement, dated as of February 14, 2013, by and among STAG Industrial Operating Partnership, L.P., STAG Industrial, Inc., Wells Fargo Securities, LLC and the other lenders party thereto(12)
	12.1	Computation of ratios of earnings to fixed charges and preferred stock dividends
	21.1	Subsidiaries of STAG Industrial, Inc.
	23.1	Consent of PricewaterhouseCoopers LLP
	24.1	Power of Attorney (included on signature page)
	31.1	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
	31.2	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
	32.1	Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

71

Exhibit Number		Description of Document
	101	The following materials from STAG Industrial, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2013 formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated and Combined Statements of Operations, (iii) the Consolidated and Combined Statements of Comprehensive Income (Loss), (vi) the Consolidated and Combined Statements of Equity, (v) the Consolidated and Combined Statements of Cash Flows, and (vi) related notes to these consolidated and combined financial statements.

*

Represents management contract or compensatory plan or arrangement.

(1)

Incorporated by reference to STAG Industrial, Inc.'s Registration Statement on Form S-11/A (File No. 333-168368) filed with the Securities and Exchange Commission on September 24, 2010.

(2)

Incorporated by reference to STAG Industrial, Inc.'s Registration Statement on Form S-11/A (File No. 333-168368) filed with the Securities and Exchange Commission on February 16, 2011.

(3)

Incorporated by reference to STAG Industrial, Inc.'s Registration Statement on Form S-11/A (File No. 333-168368) filed with the Securities and Exchange Commission on April 5, 2011.

(4)

Incorporated by reference to STAG Industrial, Inc.'s Registration Statement on Form S-11/A (File No. 333-168368) filed with the Securities and Exchange Commission on April 8, 2011.

(5)

Incorporated by reference to STAG Industrial, Inc.'s Current Report on Form 8-K filed with the Securities and Exchange Commission on April 21, 2011.

(6)

Incorporated by reference to STAG Industrial, Inc.'s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 15, 2011.

(7)

Incorporated by reference to STAG Industrial, Inc.'s Current Report on Form 8-K filed with the Securities and Exchange Commission on September 23, 2011.

(8)

Incorporated by reference to STAG Industrial, Inc.'s Current Report on Form 8-K filed with the Securities and Exchange Commission on November 2, 2011.

(9)

Incorporated by reference to STAG Industrial, Inc.'s Registration Statement on Form S-11/A (File No. 333-177131) filed with the Securities and Exchange Commission on October 26, 2011.

(10)

Incorporated by reference to STAG Industrial, Inc.'s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 8, 2012.

(11)

Incorporated by reference to STAG Industrial, Inc.'s Current Report on Form 8-K filed with the Securities and Exchange Commission on November 13, 2012.

(12)

Incorporated by reference to STAG Industrial, Inc.'s Current Report on Form 8-K filed with the Securities and Exchange Commission on February 20, 2013.

(13)

Incorporated by reference to STAG Industrial, Inc.'s Quarterly Report on Form 10-Q filed with Securities and Exchange Commission on May 8, 2013.

(14)

Incorporated by reference to STAG Industrial, Inc.'s Registration Statement on Form 8-A filed with Securities and Exchange Commission on April 11, 2013.

(15)

Incorporated by reference to STAG Industrial, Inc.'s Current Report on Form 8-K filed with Securities and Exchange Commission on April 16, 2013.

(16)

Incorporated by reference to STAG Industrial, Inc.'s Current Report on Form 8-K filed with Securities and Exchange Commission on May 6, 2013.

72

(17)

Incorporated by reference to STAG Industrial, Inc.'s Quarterly Report on Form 10-Q filed with Securities and Exchange Commission on November 6, 2013.

(18)

Incorporated by reference to STAG Industrial, Inc.'s Annual Report on Form 10-K filed with Securities and Exchange Commission on March 6, 2013.

(19)

Incorporated by reference to STAG Industrial, Inc.'s Current Report on Form 8-K filed with Securities and Exchange Commission on October 10, 2013.

73

SIGNATURES

        Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	STAG INDUSTRIAL, INC.
Dated: February 26, 2014
	By:	/s/ BENJAMIN S. BUTCHER Benjamin S. Butcher Chairman, Chief Executive Officer and President

        KNOW ALL MEN BY THESE PRESENTS, that we, the undersigned officers and directors of STAG Industrial, Inc., hereby severally constitute Benjamin S. Butcher and Gregory W. Sullivan, and each of them singly, our true and lawful attorneys with full power to them, and each of them singly, to sign for us and in our names in the capacities indicated below, the Form 10-K filed herewith and any and all amendments to said Form 10-K, and generally to do all such things in our names and in our capacities as officers and directors to enable STAG Industrial, Inc. to comply with the provisions of the Securities Exchange Act of 1934, as amended, and all requirements of the Securities and Exchange Commission, hereby ratifying and confirming our signatures as they may be signed by our said attorneys, or any of them, to said Form 10-K and any and all amendments thereto.

        Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and dates indicated.

Signature	Title	Date
/s/ BENJAMIN S. BUTCHER Benjamin S. Butcher	Chairman, Chief Executive Officer (principal executive officer) and President	February 26, 2014
/s/ VIRGIS W. COLBERT Virgis W. Colbert	Director	February 26, 2014
/s/ JEFFREY D. FURBER Jeffrey D. Furber	Director	February 26, 2014
/s/ LARRY T. GUILLEMETTE Larry T. Guillemette	Director	February 26, 2014
/s/ FRANCIS X. JACOBY III Francis X. Jacoby III	Director	February 26, 2014

74

Signature	Title	Date
/s/ CHRISTOPHER P. MARR Christopher P. Marr	Director	February 26, 2014
/s/ HANS S. WEGER Hans S. Weger	Director	February 26, 2014
/s/ GREGORY W. SULLIVAN Gregory W. Sullivan	Chief Financial Officer, Executive Vice President and Treasurer (principal financial and accounting officer)	February 26, 2014

75

INDEX TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS

Reports of Independent Registered Public Accounting Firm	F-2
Consolidated Balance Sheets as of December 31, 2013 and 2012 for STAG Industrial,  Inc.	F-4
Consolidated and Combined Statements of Operations for STAG Industrial, Inc. for the Years ended December 31, 2013 and December 31, 2012 and the Period from April 20, 2011 to December 31, 2011 and STAG Predecessor Group for the Period from January 1, 2011 to April 19, 2011	F-5
Consolidated and Combined Statements of Comprehensive Income (Loss) for the Years ended December 31, 2013 and December 31, 2012 and the Period from April 20, 2011 to December 31, 2011 and STAG Predecessor Group for the Period from January 1, 2011 to April 19, 2011	F-6
Consolidated and Combined Statements of Equity for STAG Industrial, Inc. for the Years ended December 31, 2013 and December 31, 2012 and the Period from April 20, 2011 to December 31, 2011 and STAG Predecessor Group for the Period from January 1, 2011 to April 19, 2011	F-7
Consolidated and Combined Statements of Cash Flows for STAG Industrial, Inc. for the Years ended December 31, 2013 and December 31, 2012 and the Period from April 20, 2011 to December 31, 2011 and STAG Predecessor Group for the Period from January 1, 2011 to April 19, 2011	F-8
Notes to Consolidated and Combined Financial Statements	F-9
Financial Statement Schedule—Schedule II	F-54
Financial Statement Schedule—Schedule III	F-55

F-1

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholders of STAG Industrial, Inc.

        In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of operations, comprehensive income (loss), equity and cash flows present fairly, in all material respects, the financial position of STAG Industrial, Inc. and its subsidiaries at December 31, 2013 and 2012, and the results of their operations and their cash flows for each of the two years in the period ended December 31, 2013 and for the period from April 20, 2011 to December 31, 2011 in conformity with accounting principles generally accepted in the United States of America. In addition, in our opinion, the financial statement schedules listed in the accompanying index present fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2013, based on criteria established in Internal Control—Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company's management is responsible for these financial statements and financial statement schedules, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in Management's Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on these financial statements, on the financial statement schedules, and on the Company's internal control over financial reporting based on our audits (which were integrated audits in 2013 and 2012). We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

        A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

        Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
February 26, 2014

F-2

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholders of STAG Industrial, Inc.

        In our opinion, the accompanying combined statements of operations, comprehensive loss, owner's deficit and cash flows for the period from January 1, 2011 to April 19, 2011 present fairly, in all material respects, the results of operations and cash flows of STAG Predecessor Group for the period from January 1, 2011 to April 19, 2011 in conformity with accounting principles generally accepted in the United States of America. In addition, in our opinion, the financial statement schedule for the period from January 1, 2011 to April 19, 2011 listed in the accompanying index present fairly, in all material respects, the information set forth therein when read in conjunction with the related combined financial statements. These financial statements and financial statement schedule are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements and financial statement schedule based on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
March 9, 2012, except for the Combined Statements of Comprehensive Loss and the effects of discontinued operations described in Note 3 to the combined financial statements, as to which the date is February 26, 2014

F-3

Part I. Financial Information

Item 1.    Financial Statements

STAG Industrial, Inc.

Consolidated Balance Sheets

(in thousands, except share data)

	December 31, 2013			December 31, 2012
Assets
Rental Property:
Land	$	134,399		$	104,656
Buildings		871,422			654,518
Tenant improvements		36,994			34,900
Building and land improvements		36,231			22,153
Less: accumulated depreciation		(71,653	)		(46,175	)
Total rental property, net		1,007,393			770,052
Cash and cash equivalents		6,690			19,006
Restricted cash		6,806			5,497
Tenant accounts receivable, net		13,790			9,351
Prepaid expenses and other assets		2,594			1,556
Interest rate swaps		3,924			—
Deferred financing fees, net		5,467			4,704
Leasing commissions, net		3,542			1,674
Goodwill		4,923			4,923
Due from related parties		185			806
Deferred leasing intangibles, net		214,967			187,555
Total assets	$	1,270,281		$	1,005,124
Liabilities and Equity
Liabilities:
Mortgage notes payable	$	225,591		$	229,915
Unsecured credit facility		80,500			99,300
Unsecured term loans		250,000			150,000
Accounts payable, accrued expenses and other liabilities		18,574			12,111
Interest rate swaps		—			480
Tenant prepaid rent and security deposits		8,972			5,686
Dividends and distributions payable		5,166			11,301
Deferred leasing intangibles, net		6,914			6,871
Total liabilities		595,717			515,664
Commitments and contingencies
Equity:
Preferred stock, par value $0.01 per share, 10,000,000 shares authorized,
Series A, 2,760,000 shares (liquidation preference of $25.00 per share) issued and outstanding at December 31, 2013 and December 31, 2012		69,000			69,000
Series B, 2,800,000 shares (liquidation preference of $25.00 per share) issued and outstanding at December 31, 2013		70,000			—
Common stock, par value $0.01 per share, 100,000,000 shares authorized, 44,764,377 and 35,698,582 shares issued and outstanding at December 31, 2013 and December 31, 2012, respectively		447			357
Additional paid-in capital		577,039			419,643
Common stock dividends in excess of earnings		(116,877	)		(61,024	)
Accumulated other comprehensive income (loss)		3,440			(371	)
Total stockholders' equity		603,049			427,605
Noncontrolling interest		71,515			61,855
Total equity		674,564			489,460
Total liabilities and equity	$	1,270,281		$	1,005,124

The accompanying notes are an integral part of these financial statements.

F-4

STAG Industrial, Inc. and STAG Predecessor Group

Consolidated and Combined Statements of Operations

(in thousands, except per share data)

	STAG Industrial, Inc.			STAG Industrial, Inc.			STAG Industrial, Inc.			STAG Predecessor Group
	Year ended December 31, 2013			Year ended December 31, 2012			Period from April 20, 2011 to December 31, 2011			Period from January 1, 2011 to April 19, 2011
Revenue
Rental income	$	116,344		$	73,977		$	35,749		$	6,489
Tenant recoveries		16,349			8,763			4,453			1,218
Other income		1,200			1,312			914			—
Total revenue		133,893			84,052			41,116			7,707
Expenses
Property		10,634			5,983			3,583			1,194
General and administrative		17,840			14,549			8,365			322
Real estate taxes and insurance		13,376			6,858			3,597			873
Asset management fees		—			—			—			162
Property acquisition costs		3,427			4,218			1,088			—
Depreciation and amortization		67,556			42,427			21,325			2,345
Loss on impairment		—			622			—			—
Other expenses		621			339			294			—
Total expenses		113,454			74,996			38,252			4,896
Other income (expense)
Interest income		13			19			28			1
Interest expense		(20,319	)		(16,110	)		(11,829	)		(3,825	)
Gain on interest rate swaps		—			215			2,179			762
Formation transaction costs		—			—			(3,674	)		—
Offering costs		(27	)		(68	)		(78	)		—
Loss on extinguishment of debt		—			(929	)		—			—
Total other income (expense)		(20,333	)		(16,873	)		(13,374	)		(3,062	)
Net income (loss) from continuing operations	$	106		$	(7,817	)	$	(10,510	)	$	(251	)
Discontinued operations
Income (loss) attributable to discontinued operations		(509	)		1,337			954			22
Loss on impairment attributable to discontinued operations		—			(3,941	)		—			—
Gain on sales of real estate		5,305			222			329			—
Total income (loss) attributable to discontinued operations		4,796			(2,382	)		1,283			22
Net income (loss)	$	4,902		$	(10,199	)	$	(9,227	)	$	(229	)
Less: loss attributable to noncontrolling interest after preferred stock dividends		(620	)		(3,720	)		(3,396	)
Net income (loss) attributable to STAG Industrial, Inc.	$	5,522		$	(6,479	)	$	(5,831	)
Less: preferred stock dividends		9,495			6,210			1,018
Less: amount allocated to unvested restricted stockholders		262			122			—
Net loss attributable to common stockholders	$	(4,235	)	$	(12,811	)	$	(6,849	)
Weighted average common shares outstanding—basic and diluted		42,364,125			25,046,664			15,630,910
Loss per share—basic and diluted
Loss from continuing operations attributable to common stockholders	$	(0.20	)	$	(0.44	)	$	(0.49	)
Income (loss) from discontinued operations attributable to common stockholders	$	0.10		$	(0.07	)	$	0.05
Loss per share—basic and diluted	$	(0.10	)	$	(0.51	)	$	(0.44	)

The accompanying notes are an integral part of these financial statements.

F-5

STAG Industrial, Inc. and STAG Predecessor Group

Consolidated and Combined Statements of Comprehensive Income (Loss)

(in thousands)

	STAG Industrial, Inc.			STAG Industrial, Inc.			STAG Industrial, Inc.			STAG Predecessor Group
	Year ended December 31, 2013			Year ended December 31, 2012			Period from April 20, 2011 to December 31, 2011			Period from January 1, 2011 to April 19, 2011
Net income (loss)	$	4,902		$	(10,199	)	$	(9,227	)	$	(229	)
Other comprehensive income (loss):
Unrealized gain (loss) on interest rate swaps		4,405			(480	)		—			—
Other comprehensive income (loss)		4,405			(480	)		—			—
Comprehensive income (loss)		9,307			(10,679	)		(9,227	)		(229	)
Net loss attributable to noncontrolling interest after preferred stock dividends		620			3,720			3,396			—
Other comprehensive (income) loss attributable to noncontrolling interest		(594	)		109			—			—
Comprehensive income (loss) attributable to STAG Industrial, Inc.	$	9,333		$	(6,850	)	$	(5,831	)	$	(229	)

The accompanying notes are an integral part of these financial statements.

F-6

STAG Industrial, Inc. and STAG Predecessor Group

Consolidated and Combined Statements of Equity

(in thousands, except share data)

																								Noncontrolling Interest—Unit holders in Operating Partnership
				Common Shares								Common Stock Dividends in excess of Earnings						Accumulated Other Comprehensive Income (Loss)
	Preferred Stock								Additional Paid-in Capital						Predecessor's Owner's Deficit						Total Stockholders' Equity
				Shares			Amount																				Total Equity
Period from January 1, 2011 to April 19, 2011
Balance, December 31, 2010	$	—			—		$	—	$	—		$	—		$	(8,336	)	$	—		$	(8,336	)	$	—		$	(8,336	)
Contributions		—			—			—		—			—			4,420			—			4,420			—			4,420
Distributions		—			—			—		—			—			(9,900	)		—			(9,900	)		—			(9,900	)
Net loss		—			—			—		—			—			(229	)		—			(229	)		—			(229	)
Balance, April 19, 2011 (STAG Predecessor Group)	$	—			—		$	—	$	—		$	—		$	(14,045	)	$	—		$	(14,045	)	$	—		$	(14,045	)
Period from April 20, 2011 to December 31, 2011
Balance, April 20, 2011	$	—			110		$	—	$	2		$	—		$	(14,045	)	$	—		$	(14,043	)	$	—		$	(14,043	)
Proceeds from sale of common stock		—			15,812,500			158		205,405			—			—			—			205,563			—			205,563
Offering costs		—			—			—		(19,537	)		—			—			—			(19,537	)		—			(19,537	)
Issuance of restricted stock		—			80,809			1		(1	)		—			—			—			—			—			—
Issuance of common stock		—			8,251			—		—			—			—			—			—			—			—
Dividends and distributions, net		(1,018	)		—			—		—			(11,536	)		—			—			(12,554	)		(5,654	)		(18,208	)
Non-cash compensation		—			—			—		342			—			—			—			342			351			693
Issuance of units for acquisition of properties		—			—			—		—			—			—			—			—			95,670			95,670
Issuance of Series A preferred stock		69,000			—			—		—			—			—			—			69,000			—			69,000
Rebalancing of noncontrolling interest		—			—			—		(6,290	)		—			—			—			(6,290	)		6,290			—
Redemption of initial capitalization of STAG Industrial, Inc.		—			(110	)		—		(2	)		—			—			—			(2	)		—			(2	)
Exchange of owners' equity for units		—			—			—		—			—			14,045			—			14,045			(14,045	)		—
Net income (loss)		1,018			—			—		—			(6,849	)		—			—			(5,831	)		(3,396	)		(9,227	)
Balance, December 31, 2011 (STAG Industrial, Inc.)	$	69,000			15,901,560		$	159	$	179,919		$	(18,385	)	$	—		$	—		$	230,693		$	79,216		$	309,909
Proceeds from sale of common stock		—			17,835,500			179		242,768			—			—			—			242,947			—			242,947
Offering costs		—			—			—		(11,136	)		—			—			—			(11,136	)		—			(11,136	)
Issuance of restricted stock		—			87,025			1		(1	)		—			—			—			—			—			—
Issuance of common stock		—			12,666			—		—			—			—			—			—			—			—
Dividends and distributions, net		(6,210	)		—			—		—			(29,950	)		—			—			(36,160	)		(7,587	)		(43,747	)
Non-cash compensation		—			—			—		993			—			—			—			993			948			1,941
Issuance of units for acquisition fee		—			—			—		—			—			—			—			—			225			225
Conversion of operating partnership units to common stock		—			1,861,831			18		18,597			—			—			—			18,615			(18,615	)		—
Rebalancing of noncontrolling interest		—			—			—		(11,497	)		—			—			—			(11,497	)		11,497			—
Other comprehensive loss		—			—			—		—			—			—			(371	)		(371	)		(109	)		(480	)
Net income (loss)		6,210			—			—		—			(12,689	)		—			—			(6,479	)		(3,720	)		(10,199	)
Balance, December 31, 2012 (STAG Industrial, Inc.)	$	69,000			35,698,582		$	357	$	419,643		$	(61,024	)	$	—		$	(371	)	$	427,605		$	61,855		$	489,460
Proceeds from sales of common stock		—			8,956,844			89		169,658			—			—			—			169,747			—			169,747
Issuance of Series B preferred stock		70,000			—			—		—			—			—			—			70,000			—			70,000
Offering costs		—			—			—		(8,713	)		—			—			—			(8,713	)		—			(8,713	)
Issuance of restricted stock, net		—			96,287			1		(1	)		—			—			—			—			—			—
Issuance of common stock		—			10,478			—		—			—			—			—			—			—			—
Dividends and distributions, net		(9,495	)		—			—		—			(51,880	)		—			—			(61,375	)		(8,330	)		(69,705	)
Non-cash compensation		—			—			—		1,360			—			—			—			1,360			1,609			2,969
Issuance of units for acquisition of properties		—			—			—		—			—			—			—			—			11,499			11,499
Conversion of operating partnership units to common stock		—			2,186			—		23			—			—			—			23			(23	)		—
Rebalancing of noncontrolling interest		—			—			—		(4,931	)		—			—			—			(4,931	)		4,931			—
Other comprehensive income		—			—			—		—			—			—			3,811			3,811			594			4,405
Net income (loss)		9,495			—			—		—			(3,973	)		—			—			5,522			(620	)		4,902
Balance, December 31, 2013 (STAG Industrial, Inc.)	$	139,000			44,764,377		$	447	$	577,039		$	(116,877	)	$	—		$	3,440		$	603,049		$	71,515		$	674,564

The accompanying notes are an integral part of these financial statements.

F-7

STAG Industrial, Inc. and STAG Predecessor Group

Consolidated and Combined Statements of Cash Flows

(in thousands)

	STAG Industrial, Inc.			STAG Industrial, Inc.			STAG Industrial, Inc.			STAG Predecessor Group
	Year ended December 31, 2013			Year ended December 31, 2012			Period from April 20, 2011 to December 31, 2011			Period from January 1, 2011 to April 19, 2011
Cash flows from operating activities:
Net income (loss)	$	4,902		$	(10,199	)	$	(9,227	)	$	(229	)
Adjustment to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		70,597			43,473			22,794			2,459
Loss on impairment		—			4,563			—			—
Non-cash portion of interest expense		1,081			957			737			31
Intangible amortization in rental income, net		6,544			4,837			2,776			(2	)
Straight-line rent adjustments, net		(2,941	)		(2,796	)		(1,036	)		(16	)
Gain on interest rate swaps		—			(215	)		(2,179	)		(762	)
Loss on extinguishment of debt		—			929			—			—
Gain on sales of real estate		(5,305	)		(222	)		(329	)		—
Non-cash compensation expense		2,970			1,936			693			—
Issuance of units for acquisition fee		—			225			—			—
Change in assets and liabilities:
Tenant accounts receivable, net		(1,515	)		(1,497	)		(695	)		88
Leasing commissions, net		(2,456	)		(1,020	)		(877	)		(24	)
Restricted cash		(201	)		(137	)		(124	)		—
Prepaid expenses and other assets		(939	)		(799	)		(207	)		(87	)
Accounts payable, accrued expenses and other liabilities		6,043			6,174			1,503			106
Tenant prepaid rent and security deposits		3,286			2,208			783			169
Due from related parties		621			(406	)		—			(141	)
Due to related parties		—			—			54			767
Total adjustments		77,785			58,210			23,893			2,588
Net cash provided by operating activities		82,687			48,011			14,666			2,359
Cash flows from investing activities:
Additions of land and building improvements		(261,208	)		(325,820	)		(80,191	)		(39	)
Proceeds from sales of rental property, net		14,181			7,221			4,507			—
Restricted cash		(1,108	)		1,251			(1,561	)		(542	)
Cash paid for contributed assets, net		—			—			(2,159	)		—
Cash paid for deal deposits, net		(150	)		550			(130	)		—
Additions to lease intangibles		(76,946	)		(100,405	)		(34,924	)		—
Net cash used in investing activities		(325,231	)		(417,203	)		(114,458	)		(581	)
Cash flows from financing activities:
Proceeds from the issuance of common stock at initial public offering		—			—			205,563			—
Offering cost related to issuance of common stock		—			—			(17,042	)		—
Redemption of initial capitalization of STAG Industrial, Inc. shares		—			—			(2	)		—
Proceeds from sale of Series A Preferred stock		—			—			69,000
Proceeds from sale of Series B Preferred stock		70,000			—			—			—
Offering costs related to issuance of preferred stock		—			—			(2,495	)		—
Proceeds from notes payable to related parties		—			—			—			789
Repayment of notes payable to related parties		—			—			(10,366	)		—
Proceeds from credit facility		—			124,300			34,500			—
Repayment of credit facility		—			(124,300	)		(34,500	)		—
Proceeds from unsecured credit facility		158,500			215,300			—			—
Repayment of unsecured credit facility		(177,300	)		(116,000	)		—			—
Proceeds from unsecured term loans		100,000			150,000			—			—
Proceeds from mortgage notes payable		—			78,067			48,339			—
Repayment of mortgage notes payable		(4,219	)		(144,753	)		(160,645	)		(1,180	)
Termination of swap contracts		—			—			(894	)		—
Payment of loan fees and costs		(1,949	)		(4,119	)		(3,397	)		—
Dividends and distributions		(75,838	)		(38,606	)		(12,048	)		(2,679	)
Proceeds from sales of common stock		169,747			242,947			—			—
Offering costs		(8,713	)		(11,136	)		—			—
Net cash provided by (unsed in) financing activities		230,228			371,700			116,013			(3,070	)
Increase (decrease) in cash and cash equivalents		(12,316	)		2,508			16,221			(1,292	)
Cash and cash equivalents—beginning of period		19,006			16,498			277			1,567
Cash and cash equivalents—end of period	$	6,690		$	19,006		$	16,498		$	275

The accompanying notes are an integral part of these financial statements.

F-8

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements

1. Organization and Description of Business

        STAG Industrial, Inc. (the "Company") is a fully-integrated, full-service real estate company focused on the acquisition, ownership and management of single-tenant industrial properties throughout the United States. The Company was formed as a Maryland corporation on July 21, 2010 and elected to be taxed as a real estate investment trust ("REIT") under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the "Code") commencing with its 2011 tax year. The Company is structured as an umbrella partnership REIT, commonly called an UPREIT, and owns substantially all of its assets and conducts substantially all of its business through its operating partnership, STAG Industrial Operating Partnership, L.P., a Delaware limited partnership (the "Operating Partnership"). The Company intends to continue to qualify as a REIT. As of December 31, 2013 and December 31, 2012, the Company owned an 86.65% and 85.29%, respectively, limited partnership interest in the Operating Partnership. As used herein, the "Company" refers to STAG Industrial, Inc. and its consolidated subsidiaries and partnerships except where context otherwise requires.

        As of December 31, 2013, the Company owned 209 buildings in 34 states with approximately 38.1 million rentable square feet (square feet unaudited herein and throughout Notes), consisting of 142 warehouse/distribution buildings, 47 light manufacturing buildings and 20 flex/office buildings. The Company also owned one vacant land parcel adjacent to one of the Company's buildings. The Company's properties were 95.6% leased to 191 tenants as of December 31, 2013.

        The Company's "predecessor" for accounting purposes is STAG Predecessor Group (or "Predecessor"), which is not a legal entity, but a collection of the real estate entities that were owned by STAG Investments III, LLC prior to the Company's initial public offering in April 2011 (the "IPO"). The financial information contained in this report that relates to the time periods on or prior to April 19, 2011 is the Predecessor's financial information; the financial information contained in this report for any time period on or after April 20, 2011 is the Company's financial information. The Company did not have any operating activity before April 20, 2011 and, as a result of the Company's IPO and related Formation Transactions (as defined below), is substantially different from STAG Predecessor Group.

        On April 20, 2011, concurrent with the IPO, the members of limited liability companies affiliated with the Company (collectively, the "Participants") that held direct or indirect interests in their real estate properties elected to take limited partnership units in the Operating Partnership ("Common Units") in exchange for the contribution of their properties to the Company.

        On April 20, 2011, in connection with the IPO, the following formation transactions ("Formation Transactions") were completed:

•

The Company issued 13,750,000 shares of its common stock for $13.00 per share.

•

The Company acquired certain assets and related debt of STAG Predecessor Group and of the Participants. In exchange for such assets and related debt, STAG Predecessor Group and the Participants were issued a total of 7,590,000 Common Units of the Operating Partnership, with an aggregate value of approximately $98.7 million.

•

The Company closed a loan agreement for a secured corporate revolving credit facility (the "Credit Facility") of up to $100 million with Bank of America, N.A. as administrative agent and Merrill Lynch, Pierce, Fenner & Smith Incorporated as lead arranger.

F-9

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

1. Organization and Description of Business (Continued)

•

The net proceeds of the IPO, together with borrowings in the amount of approximately $11.0 million under the Credit Facility, repaid approximately $164.7 million in certain outstanding indebtedness (including $2.5 million of direct costs associated with the obtaining and retiring of indebtedness and the termination of interest rate swaps) and $0.3 million to pay transfer taxes and other fees.

        At the time of the Formation Transactions, there were three vacant properties owned by STAG Investments III, LLC ("Fund III") and not contributed to the Company in the Formation Transactions (the "Option Properties"). Upon approval of the Company's independent directors, the Company had the right to acquire any of the Option Properties individually for a period of up to three months after notification that the property has stabilized, defined as 85% or greater occupancy pursuant to leases at least two years in remaining duration. The right to acquire any of the Option Properties would have expired 5 years from the date of the Formation Transactions. During the years ended December 31, 2013 and December 31, 2012, Fund III sold the Option Properties to independent buyers. As of December 31, 2013, there were no remaining Option Properties owned by Fund III.

2. Summary of Significant Accounting Policies

Basis of Presentation

        The Company's consolidated financial statements include the accounts of the Company, the Operating Partnership and their subsidiaries. The equity interests of other limited partners in the Operating Partnership are reflected as noncontrolling interest. The combined financial statements of STAG Predecessor Group include the accounts of STAG Predecessor Group and all entities in which STAG Predecessor Group had a controlling interest. All significant intercompany balances and transactions have been eliminated in the consolidation and combination of entities. The financial statements of the Company are presented on a consolidated basis, for all periods presented and comprise the consolidated historical financial statements of the transferred collection of real estate entities and holdings, upon the IPO. The combined financial information presented for periods on or prior to April 19, 2011 relate solely to STAG Predecessor Group. The financial statements for the periods after April 19, 2011 include the financial information of the Company, the Operating Partnership and their subsidiaries. Where the "Company" is referenced in comparisons of financial results for any date prior to and including April 19, 2011, the financial information for such period relates solely to STAG Predecessor Group, notwithstanding "Company" being the reference.

F-10

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

2. Summary of Significant Accounting Policies (Continued)

Consolidated and Combined Statements of Cash Flows—Supplemental Disclosures

        The following table provides supplemental disclosures related to the Consolidated and Combined Statements of Cash Flows (in thousands):

	STAG Industrial, Inc. Year ended December 31, 2013			STAG Industrial, Inc. Year ended December 31, 2012			STAG Industrial, Inc. Period from April 20, 2011 to December 31, 2011			STAG Predecessor Group Period from January 1, 2011 to April 19, 2011
Supplemental cash flow information
Cash paid for interest	$	19,272		$	15,044		$	11,445		$	2,433
Supplemental schedule of non-cash investing and financing activities
Acquisition of tangible assets	$	—		$	—		$	(215,890	)	$	—
Acquisition of goodwill upon Formation Transactions	$	—		$	—		$	(4,923	)	$	—
Acquisition of intangible assets upon Formation Transactions	$	—		$	—		$	(83,442	)	$	—
Assumption of mortgage notes payable	$	—		$	—		$	(201,789	)	$	—
Fair market value adjustment to mortgage notes payable acquired	$	—		$	—		$	(675	)	$	—
Assumption of related party notes payable upon Formation Transactions	$	—		$	—		$	4,466		$	—
Acquisition of intangible liabilities upon Formation Transactions	$	—		$	—		$	1,066		$	—
Acquisition of interest rate swaps upon Formation Transactions included in the purchase price allocation	$	—		$	—		$	420		$	—
Acquisition of other liabilities upon Formation Transactions	$	—		$	—		$	171		$	—
Issuance of units for acquisition of net assets upon Formation Transactions	$	—		$	—		$	95,670		$	—
Disposition of accrued lender fees upon Formation Transactions	$	—		$	—		$	—		$	4,420
Assumption of bridge loan for Option Properties upon Formation Transactions	$	—		$	—		$	—		$	(4,750	)
Assumption of note payable to related party for Option Properties upon Formation Transactions	$	—		$	—		$	—		$	(727	)
Assumption of interest rate swaps to related party for Option Properties upon Formation Transactions	$	—		$	—		$	—		$	(352	)
Non-cash investing activities included in additions of land and building improvements	$	(11,934	)	$	(440	)	$	(440	)	$	—
Issuance of units for acquisitions of properties	$	11,499		$	—		$	—		$	—
Write-off of fully depreciated tenant improvements	$	1,254		$	576		$	—		$	—
Write-off of accumulated depreciation	$	1,254		$	576		$	—		$	—
Dividends and distributions declared but not paid	$	5,166		$	11,301		$	6,160		$	—
Accrued distribution upon Formation Transactions	$	—		$	—		$	—		$	(1,392	)

F-11

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

2. Summary of Significant Accounting Policies (Continued)

Use of Estimates

        The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Real Estate and Deferred Lease Intangibles

        Real estate investments are carried at cost less accumulated depreciation and amortization. The cost of real estate includes the purchase price of the property and leasehold improvements. Expenditures for maintenance and repairs are expensed as incurred. Significant renovations and betterments that extend the economic useful lives of assets are capitalized.

        The Company evaluates the carrying value of all tangible and intangible real estate assets held for use for possible impairment when an event or change in circumstance has occurred that indicates their carrying value may not be recoverable. The evaluation includes estimating and reviewing anticipated future undiscounted cash flows to be derived from the asset and the ultimate sale of the asset. If such cash flows are less than the asset's carrying value, an impairment charge is recognized to the extent by which the asset's carrying value exceeds the estimated fair value. Estimating future cash flows is highly subjective and such estimates could differ from actual results.

        For properties considered held for sale, the Company ceases depreciating the properties and values the properties at the lower of depreciated cost or fair value, less costs to dispose. The Company classifies properties as held for sale when all criteria within the FASB's Accounting Standard Codification ("ASC") 360, Property, Plant and Equipment are met.

        The Company presents qualifying assets and liabilities and the results of operations that have been sold, or otherwise qualify as "held for sale," as discontinued operations in all periods presented if the property operations are expected to be eliminated and the Company will not have significant continuing involvement following the sale. The components of the property's net income (loss) are reflected as discontinued operations include operating results, depreciation and interest expense (if the property is subject to a secured loan).

        Expenditures for tenant improvements, leasehold improvements and leasing commissions are capitalized and amortized or depreciated over the shorter of their useful lives or the terms of each specific lease. Depreciation expense is computed using the straight-line method based on the following useful lives:

Buildings	40 years
Building and land improvements	5 - 20 years
Tenant improvements	Shorter of useful life or terms of related lease

        The Company evaluates acquisitions to determine if the acquisition represents an asset acquisition or business combination, and the Company accounts for all business combinations in accordance with ASC 805, Business Combinations. Upon acquisition of a property, the Company allocates the purchase price of the property based upon the fair value of the assets and liabilities acquired, which generally consist of land, buildings, tenant improvements and intangible assets including in-place leases, above market and below market leases and tenant relationships, as well as the fair value of debt assumed.

F-12

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

2. Summary of Significant Accounting Policies (Continued)

The Company allocates the purchase price to the fair value of the tangible assets of an acquired property by valuing the property as if it were vacant. Acquired above and below market leases are valued based on the present value of the difference between prevailing market rates and the in-place rates measured over a period equal to the remaining term of the lease for above market leases and the initial term plus the term of any below market fixed rate renewal options for below market leases that are considered bargain renewal options. The above market lease values are amortized as a reduction of rental income over the remaining term of the respective leases, and the below market lease values are amortized as an increase to rental income over the remaining initial terms plus the terms of any below market fixed rate renewal options that are considered bargain renewal options of the respective leases.

        The purchase price is further allocated to in-place lease values and tenant relationships based on the Company's evaluation of the specific characteristics of each tenant's lease and its overall relationship with the respective tenant. The value of in-place lease intangibles and tenant relationships, which are included as components of deferred leasing intangibles, are amortized over the remaining lease term (and expected renewal periods of the respective lease for tenant relationships) as adjustments to depreciation and amortization expense. If a tenant terminates its lease, the unamortized portion of leasing commissions, above and below market leases, the in-place lease value and tenant relationships are immediately written off.

        In determining the fair value of the debt assumed, the Company discounts the spread between the future contractual interest payments and hypothetical future interest payments on mortgage debt based on a current market rate. The associated fair market value debt adjustment is amortized through interest expense over the life of the debt.

        Using information available at the time of acquisition, the Company allocates the total consideration to tangible assets and liabilities and identified intangible assets and liabilities. The Company may adjust the preliminary purchase price allocations after obtaining more information about asset valuations and liabilities assumed.

Cash and Cash Equivalents

        Cash and cash equivalents consist of cash and highly liquid short-term investments with original maturities of three months or less. The Company maintains cash and cash equivalents in United States banking institutions that may exceed amounts insured by the Federal Deposit Insurance Corporation. While the Company monitors the cash balances in its operating accounts, these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, the Company has experienced no loss or lack of access to cash in its operating accounts.

Restricted Cash

        Restricted cash may include security deposits and cash held in escrow for real estate taxes and capital improvements as required in various mortgage loan agreements. Restricted cash also may include amounts held by the Company's transfer agent for preferred stock dividends that are distributed subsequent to period end.

F-13

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

2. Summary of Significant Accounting Policies (Continued)

Tenant Accounts Receivable, net

        Tenant accounts receivable, net on the Consolidated Balance Sheets includes both tenant accounts receivable, net and accrued rental income, net. The Company provides an allowance for doubtful accounts against the portion of tenant accounts receivable that is estimated to be uncollectible. As of December 31, 2013 and December 31, 2012, the Company had an allowance for doubtful accounts of $19 thousand and $0, respectively.

        The Company accrues rental revenue earned, but not yet receivable, in accordance with GAAP. As of December 31, 2013 and December 31, 2012, the Company had accrued rental revenue of $9.3 million and $6.4 million, respectively. The Company maintains an allowance for estimated losses that may result from those revenues. If a tenant fails to make contractual payments beyond any allowance, the Company may recognize additional bad debt expense in future periods equal to the amount of unpaid rent and accrued rental revenue. As of December 31, 2013 and December 31, 2012, the Company had an allowance on accrued rental revenue of $0 and $0, respectively.

        As of December 31, 2013 and December 31, 2012, the Company had a total of approximately $4.9 million and $4.8 million, respectively, of total lease security deposits available in existing letters of credit, which are not reflected on the Company's Consolidated Balance Sheets; and $3.0 million and $2.0 million, respectively, of lease security deposits available in cash.

Deferred Costs

        Deferred financing fees include costs incurred in obtaining debt that are capitalized. The deferred financing fees are amortized to interest expense over the life of the respective loans on a basis which approximates the effective interest method. Any unamortized amounts upon early repayment of debt are written off in the period of repayment. For the year ended December 31, 2013, December 31, 2012, period April 20, 2011 through December 31, 2011 and the period January 1, 2011 through April 19, 2011 amortization of deferred financing fees included in interest expense was $1.2 million, $1.1 million, $0.8 million, and $31 thousand, respectively. Fully amortized deferred charges are removed from the books upon maturity of the underlying debt.

        Leasing commissions include commissions and other direct and incremental costs incurred to obtain new tenant leases as well as to renew existing tenant leases, which are capitalized and amortized over the terms of the related leases using the straight-line method. If a lease terminates prior to the expiration of its initial term, any unamortized costs related to the lease are written off to amortization expense. Changes in leasing commissions are presented in the cash flows from operating activities section of the Consolidated and Combined Statements of Cash Flows.

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. Goodwill of the Company represents amounts allocated to the assembled workforce from the acquired management company. The Company's goodwill has an indeterminate life and is not amortized, but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company takes a qualitative approach to consider

F-14

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

2. Summary of Significant Accounting Policies (Continued)

whether an impairment of goodwill exists prior to quantitatively determining the fair value of the reporting unit in step one of the impairment test.

Use of Derivative Financial Instruments

        The Company follows ASC 815, Derivatives and Hedging for disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why the Company uses derivative instruments, (b) how the Company accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect the Company's financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company's objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments.

        The Company records all derivatives on the Consolidated Balance Sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. 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. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.

        In accordance with the FASB's fair value measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting arrangements on a net basis by counterparty portfolio. Credit risk is the risk of failure of the counterparty to perform under the terms of the contract. The Company minimizes the credit risk in an interest rate swap by entering into transactions with high-quality counterparties. The Company's exposure to credit risk at any point is generally limited to amounts recorded as assets or liabilities on the Consolidated Balance Sheets.

Fair Value of Financial Instruments

        Financial instruments include cash and cash equivalents, restricted cash, tenant accounts receivable, interest rate swaps, accounts payable, other accrued expenses, Unsecured Credit Facility (defined in Note 5), Unsecured Term Loans (defined in Note 5) and mortgage notes payable. The fair values of the cash and cash equivalents, restricted cash, tenant accounts receivable, accounts payable and other accrued expenses approximate their carrying or contract values because of the short term maturity of these instruments. See Note 5 for the fair values of the Company's debt. See Note 6 for the fair values of the Company's interest rate swaps.

F-15

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

2. Summary of Significant Accounting Policies (Continued)

        The Company adopted the fair value measurement provisions for its financial instruments recorded at fair value. The guidance establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

Offering Costs

        Underwriting commissions and direct offering costs have been reflected as a reduction of additional paid-in capital. Indirect costs associated with equity offerings are expensed as incurred and included in Formation Transaction costs and offering costs on the accompanying Consolidated Statements of Operations.

Dividends

        Earnings and profits, which determine the taxability of dividends to stockholders, will differ from income reported for financial reporting purposes due to the differences for federal income tax purposes in the treatment of gains on the sale of real property, revenue and expense recognition, compensation expense, and in the estimated useful lives and basis used to compute depreciation. During the years ended December 31, 2013, December 31, 2012, and the period from April 20, 2011 to December 31, 2011, $6.2 million ($2.25 per share of Series A Preferred Stock), $6.2 million ($2.25 per share of Series A Preferred Stock) and $1.0 million ($0.36875 per share of Series A Preferred Stock) of Series A Preferred Stock dividends were paid, respectively, that were treated as ordinary income for tax purposes. During the year ended December 31, 2013, $3.3 million ($1.173175 per share of Series B Preferred Stock) of Series B Preferred Stock dividends were paid that were treated as ordinary income for tax purposes. The tax treatment of common dividends per share for federal income tax purposes is as follows:

	Year ended December 31, 2013					Year ended December 31, 2012					Period from April 20, 2011 to December 31, 2011
	Per Share		%			Per Share		%			Per Share		%
Ordinary income	$	0.9723		71.0	%	$	0.6340		59.8	%	$	0.3471		74.5	%
Return of capital		0.3703		27.0	%		0.4260		40.2	%		0.1186		25.5	%
Unrecaptured section 1250 capital gain		0.0137		1.0	%		—		—			—		—
Other capital gain		0.0137		1.0	%		—		—			—		—
Total(1)	$	1.37		100	%	$	1.06		100	%	$	0.4657		100	%

(1)

The fourth quarter 2012 common stock dividend of $0.27 per share was included in the stockholder's 2013 tax year. The December 2013 monthly common stock dividend of $0.10 per share will be included in the stockholder's 2014 tax year.

F-16

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

2. Summary of Significant Accounting Policies (Continued)

Revenue Recognition

        All current leases are classified as operating leases and rental revenue is recognized on a straight-line basis over the term of the lease when collectability is reasonably assured. Differences between rental revenue earned and amounts due under the lease are charged or credited, as applicable, to accrued rental revenue. Additional rents from expense reimbursements for insurance, real estate taxes and certain other expenses are recognized in the period in which the related expenses are incurred.

        Early lease termination fees are recorded in rental income on a straight-line basis from the notification date of such termination to the then remaining (not the original) lease term, if any, or upon collection if collection is not reasonably assured. On July 8, 2011, the Company entered into a lease termination agreement with the tenant of two facilities, one located in Youngstown, OH and the other in Bardstown, KY. The agreement provided that the Youngstown, OH lease terminated effective July 31, 2011 and required the tenant to pay a termination fee of $2.0 million. Of the termination fee paid, $0.2 million was a replenishment of a security deposit at the Bardstown, KY property, $45 thousand was applied to the outstanding accounts receivable, and the remaining amount of approximately $1.8 million was recognized as termination income and is included in rental income during the period April 20, 2011 to December 31, 2011. On October 18, 2013, the Company entered into a lease termination agreement with the tenant located at the Creedmoor, NC building. The agreement provided that the tenant's lease terminated effective October 31, 2013 and required the tenant to pay a termination fee of $2.5 million. The termination income is included in income (loss) attributable to discontinued operations on the accompanying Consolidated Statements of Operations as the property was sold on October 31, 2013 to an unaffiliated third party.

        The Company earns revenue from asset management fees, which are included on the Consolidated Statements of Operations in other income. The Company recognizes revenue from asset management fees when the related fees are earned and are realized or realizable.

        By the terms of their leases, certain tenants are obligated to pay directly the costs of their properties' insurance, real estate taxes, ground lease payments, and certain other expenses and these costs are not reflected on the Company's Consolidated and Combined Financial Statements. To the extent any tenant responsible for these costs under its respective lease defaults on its lease or it is deemed probable that the tenant will fail to pay for such costs, the Company would record a liability for such obligation. The Company estimates that real estate taxes, which are the responsibility of these certain tenants, was approximately $9.4 million for the year ended December 31, 2013, $6.9 million for the year ended December 31, 2012, $0.5 million for the period January 1, 2011 to April 19, 2011, $3.5 million for the period from April 20, 2011 to December 31, 2011. This would have been the maximum liability of the Company had the tenants not met their contractual obligations. The Company does not recognize recovery revenue related to leases where the tenant has assumed the cost for real estate taxes, insurance, ground lease payments and certain other expenses.

Gain on Sales of Real Estate

        Gain on sale of real estate is recognized pursuant to the provisions included in ASC 360-20, Real Estate Sales. The specific timing of the sale is measured against various criteria in ASC 360-20 related to the terms of the transaction and continuing involvement in the form of management or financial assistance associated with the properties. If the sales criteria for the full accrual method are not met,

F-17

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

2. Summary of Significant Accounting Policies (Continued)

the Company defers some or all of the gain recognition and accounts for the continued operations of the property by applying the finance, leasing, profit sharing, deposit, installment or cost recovery methods, as appropriate, until the sales criteria are met.

Incentive and Equity-Based Employee Compensation Plans

        The Company grants equity-based compensation awards to its employees and directors typically in the form of restricted shares of common stock, long-term incentive plan units in the Operating Partnership ("LTIP units") and an outperformance program. See Notes 7, 8 and 14 for further discussion of restricted shares of common stock, LTIP units, and the outperformance program, respectively. The Company accounts for its equity-based employee compensation in accordance with ASC 718, Compensation—Stock Compensation. The Company measures equity-based compensation expense based on the fair value of the awards on the grant date and recognizes the expense ratably over the vesting period.

Income Taxes

        Prior to the IPO, the Predecessor was comprised primarily of limited partnerships and limited liability companies. Under applicable federal and state income tax rules, the allocated share of net income or loss from the limited partnerships and limited liability companies was reportable in the income tax returns of the respective partners and members.

        The Company elected to be taxed as a REIT under the Code commencing with its taxable year ended December 31, 2011 and intends to continue to qualify as a REIT. As a REIT, the Company is required to distribute at least 90% of its REIT taxable income to its stockholders and meet the various other requirements imposed by the Code relating to such matters as operating results, asset holdings, distribution levels and diversity of stock ownership. The Company is generally not subject to corporate level income tax on the earnings distributed currently to its stockholders that it derives from its REIT qualifying activities. If the Company fails to qualify as a REIT in any taxable year, and is unable to avail itself of certain savings provisions set forth in the Code, all of the Company's taxable income would be subject to federal income tax at regular corporate rates, including any applicable alternative minimum tax.

        The Company will not be required to make distributions with respect to income derived from the activities conducted through subsidiaries that the Company elects to treat as taxable REIT subsidiaries ("TRS") for federal income tax purposes. Certain activities that the Company undertakes must be conducted by a TRS, such as performing non-customary services for its tenants and holding assets that it cannot hold directly. A TRS is subject to federal and state income taxes. The TRS did not have any activity during the years ended December 31, 2013 and December 31, 2012 and the period April 20, 2011 to December 31, 2011.

        The Company and certain of its subsidiaries are subject to certain state and local income, excise and franchise taxes. Taxes in the amount of $0.6 million, $0.3 million and $0.3 million have been recorded in other expenses on the accompanying Consolidated Statements of Operations for the years ended December 31, 2013, December 31, 2012 and the period April 20, 2011 to December 31, 2011.

        The Company currently has no liabilities for uncertain tax positions.

F-18

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

2. Summary of Significant Accounting Policies (Continued)

        The following table reconciles net income (loss) to taxable income for the years ended December 31, 2013 and 2012, respectively, and the period April 20, 2011 to December 31, 2011 (in thousands):

	Year ended December 31, 2013			Year ended December 31, 2012			Period from April 20, 2011 to December 31, 2011
Net income (loss)	$	4,902		$	(10,199	)	$	(9,227	)
Book/Tax differences from depreciation and amortization		46,389			24,048			12,625
Above/Below market lease amortization		6,544			4,837			2,776
Loss on impairments		—			4,563			—
Formation Transaction costs		—			—			3,169
Offering costs		27			68			78
Book/Tax difference on property acquisition costs		3,427			4,218			1,088
Loss on extinguishment of debt		—			565			—
Accrued non-recurring IPO bonus payment		—			(1,000	)		1,000
Accrued bonus payment		440			3,731			—
Book/Tax difference on bad debt expense		19			317			526
Book/Tax difference on non-cash compensation		1,846			1,375			560
Book/Tax difference on gain on sales of real estate		(3,915	)		(4,554	)		(1,231	)
Straight-line rent adjustments, net		(2,941	)		(2,796	)		(1,036	)
Unrealized gain on interest rate swaps		—			(215	)		(2,805	)
Book/tax difference on non-cash portion of interest expense		(106	)		(159	)		—
Other book/tax differences, net		28			63			(73	)
Loss attributable to noncontrolling interest		(7,785	)		(5,940	)		(1,768	)
Taxable income subject to distribution requirement(1)	$	48,875		$	18,922		$	5,682

(1)

The Company distributed in excess of 100% of its taxable income to its stockholders during the years ended December 31, 2013 and December 31, 2012, and the period April 20, 2011 to December 31, 2011, respectively.

Earnings Per Share

        The Company uses the two-class method of computing earnings per common share, which is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Under the two-class method, basic earnings per common share are computed by dividing the sum of distributed earnings to common stockholders and undistributed earnings allocated to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur from shares issuable in connection with awards under incentive and equity-based compensation plans.

F-19

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

2. Summary of Significant Accounting Policies (Continued)

Segment Reporting

        The Company manages its operations on an aggregated, single segment basis for purposes of assessing performance and making operating decisions and, accordingly, has only one reporting and operating segment.

3. Real Estate

        The following table summarizes the acquisitions of the Company during the years ended December 31, 2013 and December 31, 2012:

Year ended December 31, 2013

Property Location	Date Acquired		Square Feet		Buildings
Orangeburg, SC		2/7/2013		319,000		1
Golden, CO		2/27/2013		227,500		1
Columbia, SC		2/28/2013		273,280		1
DeKalb, IL		3/15/2013		146,740		1
Ocala, FL		3/26/2013		619,466		1
Londonderry, NH		3/28/2013		125,060		1
Marion, IA		3/28/2013		95,500		1
Mishawaka, IN		4/5/2013		308,884		1
Southfield, MI(1)		4/9/2013		113,000		1
Houston, TX		4/9/2013		201,574		1
Idaho Falls, ID		4/11/2013		90,300		1
Mt. Prospect, IL		5/14/2013		87,380		1
Williamsport, PA		5/31/2013		250,000		1
Belvidere, IL		6/19/2013		1,006,960		8
Kentwood, MI		6/26/2013		85,157		1
Marshall, MI		6/26/2013		57,025		1
Nashville, TN		7/18/2013		150,000		1
Catoosa, OK		7/31/2013		100,100		1
New Berlin, WI		8/16/2013		205,063		1
Hampstead, MD		8/21/2013		1,035,249		1
New Hope, MN		9/20/2013		107,348		1
Springfield, OH		9/26/2013		350,500		1
Orlando, FL		10/8/2013		215,900		1
North Jackson, OH		11/6/2013		209,835		1
Mebane, NC		11/14/2013		383,500		1
Shannon, GA		11/26/2013		568,516		1
Lansing, MI		12/11/2013		160,000		1
Harvard, IL		12/17/2013		126,304		1
Sauk Village, IL		12/17/2013		375,785		1
South Holland, IL		12/17/2013		202,902		1
Mascot, TN		12/19/2013		130,560		1
Janesville, WI		12/27/2013		700,000		1
Total				9,028,388		39

(1)

The Company also owns a 5.4 acre vacant land parcel adjacent to this building.

F-20

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

3. Real Estate (Continued)

Year ended December 31, 2012

Property Location	Date Acquired		Square Feet		Buildings
East Windsor, CT		3/1/2012		145,000		1
South Bend, IN		3/8/2012		225,000		1
Lansing, MI		3/21/2012		129,325		1
Portland, ME		3/27/2012		100,600		1
Portland, TN		3/30/2012		414,043		1
Spartanburg, SC		4/5/2012		409,600		4
Franklin, IN		4/17/2012		703,496		1
Muhlenberg Township, PA		5/24/2012		394,289		1
Avon, CT		6/15/2012		78,400		1
Orlando, FL		6/15/2012		155,000		1
Pineville, NC		6/15/2012		75,400		1
Buffalo, NY		6/15/2012		117,000		1
Edgefield, SC		6/15/2012		126,190		1
Arlington, TX		6/15/2012		196,000		1
Bellevue, OH		7/18/2012		181,838		1
Atlanta, GA		8/1/2012		407,981		1
Huntersville, NC		8/6/2012		185,570		1
Simpsonville, SC		8/23/2012		204,952		1
Simpsonville, SC		8/23/2012		207,042		1
Dallas, GA		9/4/2012		92,807		1
Mebane, NC		9/4/2012		223,340		1
Mebane, NC		9/4/2012		202,691		1
De Pere, WI		9/13/2012		200,000		1
Duncan, SC		9/21/2012		474,000		1
Duncan, SC		9/21/2012		313,380		1
Buena Vista, VA		9/27/2012		172,759		1
Gurnee, IL		9/28/2012		223,760		1
Auburn Hills, MI		10/9/2012		87,932		1
El Paso, TX		10/9/2012		269,245		1
Gloversville, NY		10/9/2012		50,000		1
Gloversville, NY		10/9/2012		101,589		1
Gloversville, NY		10/9/2012		26,529		1
Gloversville, NY		10/9/2012		59,965		1
Greenwood, SC		10/9/2012		104,955		1
Greenwood, SC		10/9/2012		70,100		1
Holland, MI		10/9/2012		195,000		1
Independence, VA		10/9/2012		120,000		1
Jackson, TN		10/9/2012		250,000		1
Johnstown, NY		10/9/2012		52,500		1
Johnstown, NY		10/9/2012		60,000		1
Johnstown, NY		10/9/2012		42,325		1

F-21

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

3. Real Estate (Continued)

Property Location	Date Acquired		Square Feet		Buildings
Johnstown, NY		10/9/2012		57,102		1
Kansas City, KS		10/9/2012		56,580		1
Lafayette, IN		10/9/2012		71,400		1
Lafayette, IN		10/9/2012		120,000		1
Lafayette, IN		10/9/2012		275,000		1
Lansing, MI		10/9/2012		250,100		1
Marion, IN		10/9/2012		249,600		1
Novi, MI		10/9/2012		120,800		1
O'Hara, PA		10/9/2012		887,084		1
Parsons, KS		10/9/2012		120,000		1
Phenix City, AL		10/9/2012		117,568		1
Portage, IN		10/9/2012		212,000		1
Ware Shoals, SC		10/9/2012		20,514		1
Wichita, KS		10/9/2012		80,850		1
Wichita, KS		10/9/2012		120,000		1
Wichita, KS		10/9/2012		44,760		1
Wichita, KS		10/9/2012		47,700		1
Chicopee, MA		10/26/2012		217,000		1
Sterling Heights, MI		10/31/2012		108,000		1
Harrisonburg, VA		11/29/2012		357,673		1
Toledo, OH		12/13/2012		177,500		1
Woodstock, IL		12/14/2012		129,803		1
Kansas City, MO		12/19/2012		226,576		1
Smyrna, GA		12/20/2012		102,000		1
Montgomery, IL		12/20/2012		584,301		1
Statham, GA		12/21/2012		225,680		1
Total				12,829,194		70

        On October 9, 2012, the Company acquired 31 industrial properties from STAG Investments Holdings II, LLC, a wholly owned subsidiary of STAG Investments II, LLC (the "Fund"), which are related parties of the Company through common management. On October 31, 2012 and April 5, 2013, the Company acquired two additional industrial properties from the Fund. The Company and its Predecessor served as the asset manager of the Fund for all periods presented. Together, the acquisition of the 33 industrial properties (collectively referred to as the "STAG II Acquisitions") represented a significant acquisition of the Company.

        The following table (in thousands) summarizes the allocation of the consideration paid during the year ended December 31, 2013 and the year ended December 31, 2012, respectively, for the acquired

F-22

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

3. Real Estate (Continued)

assets and liabilities in connection with the acquisitions of buildings at the date of acquisition identified in the table above (in thousands):

	Year Ended December 31, 2013			Weighted Average Amortization Period (years) Lease Intangibles		Year Ended December 31, 2012			Weighted Average Amortization Period (years) Lease Intangibles
Land	$	31,310			N/A	$	34,991			N/A
Buildings		223,420			N/A		269,616			N/A
Tenant improvements		2,526			N/A		10,624			N/A
Cash escrow for capital additions		—			N/A		785			N/A
Above market leases		8,219			5.8		16,728			10.0
Below market leases		(2,538	)		7.2		(5,962	)		6.5
In-place leases		50,005			5.8		63,397			6.6
Tenant relationships		21,257			8.2		26,241			8.2
Building and land improvements		9,133			N/A		7,488			N/A
Net assets acquired	$	343,332				$	423,908

        As partial consideration for eight buildings acquired on June 19, 2013, the Company granted 555,758 Common Units in the Operating Partnership with a fair value of approximately $11.5 million based on the Company's NYSE closing stock price on June 19, 2013. The issuance of the Common Units was effected in reliance upon an exemption from registration provided by Section 4(2) under the Securities Act of 1933, as amended. The Company relied on the exemption based on representations given by the holders of the Common Units. The remaining purchase price of approximately $40.1 million was paid in cash.

        The Company has included the results of operations for each of the acquired properties on the Consolidated Statements of Operations from the date of acquisition. The properties acquired during the year ended December 31, 2013 contributed $16.7 million to total revenue and $0.4 million to net income (including property acquisition costs of $3.0 million related to the acquisition of 39 buildings during the year ended December 31, 2013) during the year ended December 31, 2013.

        The following tables set forth pro forma information for the years ended December 31, 2013 and 2012, respectively. The below pro forma information does not purport to represent what the actual results of operations of the Company would have been had the acquisitions outlined above occurred on

F-23

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

3. Real Estate (Continued)

the first day of the applicable reporting period, nor do they purport to predict the results of operations of future periods. The pro forma information has not been adjusted for property sales.

Pro Forma	Year ended December 31, 2013 (in thousands, except share data)(1)
Total revenue	$	154,866
Net income(2)	$	11,780
Net income attributable to common stockholders	$	1,715
Weighted average shares outstanding		42,364,125
Net income per share attributable to common stockholders	$	0.04

Pro Forma	Year ended December 31, 2012 (in thousands, except share data)(3)
Total revenue	$	152,962
Net loss(2)	$	(12,286	)
Net loss attributable to common stockholders	$	(14,424	)
Weighted average shares outstanding		25,046,664
Net loss per share attributable to common stockholders	$	(0.58	)

(1)

The unaudited pro forma information for the year ended December 31, 2013 is presented as if the properties acquired during the year ended December 31, 2013 had occurred at January 1, 2012, the beginning of the reporting period prior to acquisition.

(2)

The net income for the year ended December 31, 2013 excludes $3.0 million of property acquisition costs related to the acquisition of buildings that closed during the year ended December 31, 2013, and the net loss for the year ended December 31, 2012 was adjusted to include these acquisition costs. Net loss for the year ended December 31, 2012 excludes $3.6 million of property acquisition costs related to the acquisition of buildings that closed during the year ended December 31, 2012.

(3)

The unaudited pro forma information for the year ended December 31, 2012 is presented as if the properties acquired during the year ended December 31, 2013 and the properties acquired during the year ended December 31, 2012 had occurred at January 1, 2012 and January 1, 2011, respectively, the beginning of the reporting period prior to acquisition.

        On October 31, 2013, the Company sold a 243,048 square feet warehouse and distribution building located in Creedmoor, NC. The carrying value of the building prior to sale was $4.5 million. The sales price was $9.5 million and the Company received net proceeds of $9.3 million. A gain on sale of real estate of $4.8 million was recognized at closing under the full accrual method of gain recognition. On October 18, 2013, the Company entered into a lease termination agreement with the tenant located at Creedmoor, NC. The agreement provided that the tenant's lease terminated effective October 31, 2013 and required the tenant to pay a termination fee of $2.5 million. The building contributed $0.7 million (exclusive of termination income and acceleration of straight line rent and above market rent), $0.9 million and $0.6 million to total revenue during the years ended December 31, 2013,

F-24

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

3. Real Estate (Continued)

December 31, 2012, and the period from April 20, 2011 to December 31, 2011, respectively. The results of operations (inclusive of the termination income) and the gain on sale are included in income (loss) attributable to discontinued operations on the accompanying Consolidated Statements of Operations.

        On June 12, 2013, the Company sold a 53,183 square feet flex/office building located in Pittsburgh, PA. The carrying value of the building prior to sale was $4.4 million. The sales price was $5.1 million and the Company received net proceeds of $4.8 million. A gain on sale of real estate of $0.5 million was recognized at closing under the full accrual method of gain recognition. The building contributed $0.3 million, $0.5 million, and $0.4 million, to total revenue during the years ended December 31, 2013, December 31, 2012 and the period from April 20, 2011 to December 31, 2011, respectively. The results of operations and the gain on sale are included in income (loss) attributable to discontinued operations on the accompanying Consolidated Statements of Operations.

        The Company tested the property located in Great Bend, KS for impairment as of September 30, 2012 utilizing a probability weighted recovery analysis of certain scenarios, and it was determined that the carrying value of the property was not recoverable from the estimated future undiscounted cash flows. Accordingly, the property was written down to its estimated fair value resulting in a loss on impairment of $3.9 million (of which $0.7 million related to lease intangibles) for the three and nine months ended September 30, 2012. Subsequent to the impairment loss being recognized, on November 30, 2012, the Company sold the building for a sales price of $4.0 million in an arm's length transaction. The carrying value of the property prior to sale was $4.0 million. The Company received net proceeds of $4.0 million. There was a gain of $3 thousand recognized at closing under the full accrual method of gain recognition. The property contributed $0 million, $1.8 million, $0.8 million and $0.4 million to total revenue during the years ended December 31, 2013, December 31, 2012, the period from April 20, 2011 to December 31, 2011 and the period from January 1, 2011 to April 19, 2011, respectively. The loss on impairment, results of operations and the gain on sale are included in income (loss) attributable to discontinued operations on the accompanying Consolidated and Combined Statements of Operations.

        On April 20, 2012, the Company sold a vacant warehouse and distribution facility located in Youngstown, OH containing 153,708 net rentable square feet. The carrying value of the property prior to sale was $3.0 million. The sales price was $3.4 million and the Company received net proceeds of $3.2 million. The property contributed $0, $0, $2.0 million and $0.2 million to total revenue during the years ended December 31, 2013, December 31, 2012, the period from April 20, 2011 to December 31, 2011 and the period from January 1, 2011 to April 19, 2011, respectively. At closing, the Company recognized a gain on sale of real estate in the amount of $0.2 million under the full accrual method of gain recognition. The results of operations and the gain on sale are included in income (loss) attributable to discontinued operations on the accompanying Consolidated and Combined Statements of Operations.

        On December 22, 2011, the Company sold a vacant flex/office property located in Amesbury, MA containing approximately 78,000 net rentable square feet. The carrying value of the property prior to sale was $4.2 million. The sales price was approximately $4.8 million and the Company received net proceeds of $4.5 million. At closing, the Company recognized a gain on sale of real estate in the amount of $0.3 million under the full accrual method of gain recognition. The property contributed $0, $0, $0 and $0 to total revenue during the years ended December 31, 2013, December 31, 2012, the period from April 20, 2011 to December 31, 2011 and the period from January 1, 2011 to April 19,

F-25

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

3. Real Estate (Continued)

2011, respectively. The results of operations and the gain on sale are included in income (loss) attributable to discontinued operations on the accompanying Consolidated and Combined Statement of Operations.

4. Deferred Leasing Intangibles

        Deferred leasing intangibles included in total assets consisted of the following (in thousands):

	December 31, 2013			December 31, 2012
In-place leases	$	142,518		$	108,363
Less: Accumulated amortization		(49,756	)		(28,289	)
In-place leases, net		92,762			80,074
Above market leases		57,283			50,699
Less: Accumulated amortization		(17,232	)		(10,362	)
Above market leases, net		40,051			40,337
Tenant relationships		77,260			61,050
Less: Accumulated amortization		(18,693	)		(11,298	)
Tenant relationships, net		58,567			49,752
Leasing commissions		33,107			23,376
Less: Accumulated amortization		(9,520	)		(5,984	)
Leasing commissions, net		23,587			17,392
Total deferred leasing intangibles, net	$	214,967		$	187,555

        Deferred leasing intangibles included in total liabilities consisted of the following (in thousands):

	December 31, 2013			December 31, 2012
Below market leases	$	11,434		$	9,878
Less: Accumulated amortization		(4,520	)		(3,007	)
Total deferred leasing intangibles, net	$	6,914		$	6,871

F-26

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

4. Deferred Leasing Intangibles (Continued)

        Amortization expense, inclusive of results from discontinued operations, related to in-place leases, leasing commissions and tenant relationships of deferred leasing intangibles was $42.5 million, $25.0 million, $12.9 million and $0.7 million for the years ended December 31, 2013, December 31, 2012, for the periods from April 20, 2011 to December 31, 2011 and January 1, 2011 to April 19, 2011, respectively. Rental income, inclusive of results from discontinued operations, related to net amortization of above and below market leases increased (decreased) rental income by $(6.5) million, $(4.8) million, $(2.8) million and $2 thousand for the years ended December 31, 2013, December 31, 2012, the period from April 20, 2011 to December 31, 2011 and the period from January 1, 2011 to April 19, 2011, respectively.

        Amortization related to deferred leasing intangibles over the next five years is as follows (in thousands):

	Estimated Net Amortization of In-Place Leases, Leasing Commissions and Tenant Relationships		Net Decrease to Rental Income Related to Above and Below Market Leases
2014	$	41,754	$	5,980
2015		33,004		6,201
2016		26,818		5,600
2017		21,011		4,240
2018		15,217		3,256

        On June 11, 2012, the Company received notice from a tenant that the tenant was exercising an option in its lease to downsize its space from approximately 190,000 to 60,000 rentable square feet effective March 31, 2013. After determining the undiscounted future cash flows were not recoverable, the Company calculated the fair value of the lease intangibles. Using the remaining contractual lease payments for the reduced space and discounting the cash flows at a risk adjusted return for a market participant of 11.4%, it was determined that the fair value of the lease intangibles was $0.4 million, resulting in a noncash impairment loss of $0.6 million during the year ended December 31, 2012, which is reflected in the accompanying Consolidated Statements of Operations. The fair value calculation of the lease intangibles of $0.4 million was performed using Level 3 inputs, and this is a nonrecurring fair value measurement.

        As discussed in Note 3 above, the Company recognized an impairment loss of $0.7 million during the year ended December 31, 2012 related to lease intangibles at its property located in Great Bend, KS. The fair value calculation of the lease intangibles was performed using Level 3 inputs, and this is a nonrecurring fair value measurement.

5. Debt

        Payments on mortgage notes are generally due in monthly installments of principal amortization and interest. Payments on the Unsecured Term Loans and the Unsecured Credit Facility (each defined below) are generally due in monthly installments of interest.

F-27

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

5. Debt (Continued)

        The following table sets forth a summary of the Company's outstanding indebtedness, including mortgage notes payable and borrowings under the Company's Unsecured Term Loans and Unsecured Credit Facility as of December 31, 2013 and December 31, 2012 (dollars in thousands):

Loan	Interest Rate(1)		Principal outstanding as of December 31, 2013		Principal outstanding as of December 31, 2012		Current Maturity
Sun Life(2)		6.05%	$	3,817	$	4,079		Jun-1-2016
Webster Bank(3)		4.22%		5,834		5,984		Aug-4-2016
Bank of America Unsecured Credit Facility(4)		LIBOR + 1.45%		80,500		99,300		Sept-10-2016
Union Fidelity(5)		5.81%		6,551		6,898		Apr-30-2017
Webster Bank(6)		3.66%		3,121		3,203		May-29-2017
Webster Bank(7)		3.64%		3,360		3,450		May-31-2017
Bank of America Unsecured Term Loan(8)		LIBOR + 1.40%		150,000		150,000		Sept-10-2017
CIGNA-1 Facility(9)		6.50%		58,874		59,645		Feb-1-2018
CIGNA-2 Facility(10)		5.75%		59,990		60,863		Feb-1-2018
CIGNA-3 Facility(11)		5.88%		16,879		17,097		Oct-1-2019
Wells Fargo Unsecured Term Loan(12)		LIBOR + 2.15%		100,000		—		Feb-14-2020
Wells Fargo CMBS Loan(13)		4.31%		67,165		68,696		Dec-1-2022
			$	556,091	$	479,215

(1)

Current interest rate as of December 31, 2013. At December 31, 2013 and December 31, 2012, the one-month LIBOR rate was 0.1677% and 0.2087%, respectively.

(2)

This loan with Sun Life Assurance Company of Canada (U.S.) ("Sun Life") was assumed on October 14, 2011 in connection with the acquisition of the building located in Gahanna, OH. The property is collateral for this loan. The principal outstanding includes an unamortized fair market value premium of $0.2 million and $0.2 million as of December 31, 2013 and December 31, 2012, respectively.

(3)

This loan with Webster Bank, National Association ("Webster Bank") was entered into on August 4, 2011 in connection with the acquisition of the building located in Norton, MA. The property is collateral for this loan.

(4)

The spread over LIBOR for this Bank of America, N.A. ("Bank of America") unsecured revolving credit facility ("Unsecured Credit Facility") is based on the Company's consolidated leverage. The spread was 1.45% and 1.65% as of December 31, 2013 and December 31, 2012, respectively. The Company paid unused fees of $0.6 million and $0.1 million for the years ended December 31, 2013 and December 31, 2012, respectively. The borrowing capacity as of December 31, 2013 was $119.3 million, assuming current leverage levels.

(5)

This loan with Union Fidelity Life Insurance Co. ("Union Fidelity") was assumed on July 28, 2011 in connection with the acquisition of the St. Louis, MO building. The property is collateral for this

F-28

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

5. Debt (Continued)

loan. The principal outstanding includes an unamortized fair market value premium of $0.1 million and $0.2 million as of December 31, 2013 and December 31, 2012, respectively.

(6)

This loan with Webster Bank was entered into on May 29, 2012 in connection with the acquisition of the building located in Portland, ME. The property is collateral for this loan.

(7)

This loan with Webster Bank was entered into on May 31, 2012 in connection with the acquisition of the building located in East Windsor, CT. The property is collateral for this loan.

(8)

This Bank of America unsecured term loan ("Bank of America Unsecured Term Loan") was entered into on September 10, 2012 and subsequently amended on October 7, 2013. The spread over LIBOR is based on the Company's consolidated leverage ratio. The spread was 1.40% and 1.65% as of December 31, 2013 and December 31, 2012, respectively. The Company swapped the one-month LIBOR for a fixed rate for $100.0 million of the $150.0 million outstanding on the Bank of America Unsecured Term Loan. The net settlements of the swaps commenced on the effective date of the swaps, October 10, 2012 (see Note 6 for further details). There was no remaining borrowing capacity as of December 31, 2013.

(9)

This Connecticut General Life Insurance Company ("CIGNA") credit facility originally was entered into in July 2010 (the "CIGNA-1 Facility"), which loan has various buildings serving as collateral and has no remaining borrowing capacity as of December 31, 2013.

(10)

This CIGNA credit facility originally was entered into in October 2010 (the "CIGNA-2 Facility"), which loan has various buildings serving as collateral and has a remaining borrowing capacity of approximately $2.9 million as of December 31, 2013, subject to customary terms and conditions, including underwriting.

(11)

This CIGNA credit facility originally was entered into on July 8, 2011 ("CIGNA-3 Facility"), which loan has various buildings serving as collateral. The CIGNA-3 Facility and has a remaining borrowing capacity of approximately $47.9 million as of December 31, 2013, subject to customary terms and conditions, including underwriting.

(12)

This Wells Fargo Bank, National Association ("Wells Fargo") unsecured term loan ("Wells Fargo Unsecured Term Loan") was entered into on February 14, 2013. The spread over LIBOR is based on the Company's consolidated leverage. The spread was 2.15% as of December 31, 2013. As of December 31, 2013, the Company swapped one-month LIBOR for a fixed rate on $125.0 million of the $150.0 million capacity on the unsecured term loan (see Note 6 for further details). The borrowing capacity as of December 31, 2013 was $50.0 million, assuming current leverage levels, and was drawn down by the Company on January 30, 2014.

(13)

This Wells Fargo loan ("CMBS Loan") was entered into on November 8, 2012 and is a non-recourse loan with 28 buildings serving as collateral.

2013 Debt Activity

        On February 14, 2013, the Company closed a $150.0 million unsecured term loan with Wells Fargo Bank with a maturity date of February 14, 2020. Borrowings under the Wells Fargo Unsecured Term Loan bear interest at a floating rate equal to the one-month LIBOR plus a spread that will range from 2.15% and 2.70%, based on the Company's consolidated leverage ratio. The spread was 2.15% as of December 31, 2013. The Wells Fargo Unsecured Term Loan has an accordion feature that allows the

F-29

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

5. Debt (Continued)

Company to increase its borrowing capacity to $250.0 million, subject to the satisfaction of certain conditions. The Company incurred $1.4 million in deferred financing fees associated with the closing of the Wells Fargo Unsecured Term Loan, which will be amortized over its seven year term. The Company also incurred an annual fee of $50 thousand to be amortized over one year. The Wells Fargo Unsecured Term Loan has an unused commitment fee equal to 0.35% of its unused portion, which is paid monthly in arrears. During the period February 14, 2013 to December 31, 2013, the Company incurred an unused commitment fee of $0.3 million that was included in the Consolidated Statements of Operations.

        On October 7, 2013, the Unsecured Credit Facility and the Bank of America Unsecured Term Loan were amended to reduce the spreads on the one-month Eurodollar Rate and the Base Rate (each as defined in the credit agreement) and to reduce the unused fee rates. Upon the execution of the amendment, the Company incurred $0.3 million and $0.2 million in deferred financing fees, which will be amortized over the then remaining three and four year terms of the Unsecured Credit Facility and Bank of America Unsecured Term Loan, respectively. The amendment was considered a modification of terms; therefore, no deferred financing fees were expensed as a loss on extinguishment of debt. The following table compares the original terms to the amended terms of the Unsecured Credit Facility and the Bank of America Unsecured Term Loan.

	Original Terms	Amended Terms
Applicable Rates	Unsecured Credit Facility and Unsecured Term Loan	Unsecured Credit Facility	Unsecured Term Loan
Eurodollar Rate(1):	one month-LIBOR + 165.0 bps - 225.0 bps	one month-LIBOR + 145.0 bps - 205.0 bps	one month-LIBOR + 140.0 bps - 200.0 bps
Base Rate(1):	Base rate + 65.0 bps - 125.0 bps	Base rate + 45.0 bps - 105.0 bps	Base rate + 40.0 bps - 100.0 bps
Unused Fees:	<50%, 35.0 bps; > 50%, 25.0 bps	<50%, 25.0 bps; > 50%, 20.0 bps	—

(1)

The spread over the applicable rate is based on the Company's consolidated leverage ratio.

2012 Debt Activity

        On June 27, 2012, the Company paid down the principal outstanding on the Bank of America, N.A. loan in the amount of $8.1 million, which had an interest rate of 7.05%. The early extinguishment of the loan resulted in a gain of $18 thousand as a result of the acceleration of an unamortized fair market value premium. There were no pre-payment penalties associated with the loan.

        On September 10, 2012, the Company paid off the remaining balance under, and terminated, the Credit Facility, which was a secured facility, with proceeds from the Unsecured Credit Facility. The early extinguishment of the Credit Facility resulted in a loss of $0.5 million as a result of the acceleration of the unamortized deferred financing fees. There were no pre-payment penalties associated with the loan.

        On September 10, 2012, contemporaneously with the termination of the Credit Facility, the Company closed on a credit agreement for the Unsecured Credit Facility of up to $200.0 million with a

F-30

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

5. Debt (Continued)

sublimit of $10.0 million for swing line loans and $10.0 million for letters of credit and the $150.0 million Bank of America Unsecured Term Loan with Bank of America, N.A. as administrative agent and Merrill Lynch, Pierce, Fenner and Smith Incorporated as lead arranger. The Unsecured Credit Facility has an accordion feature that allows the Company to increase its borrowing capacity to $300.0 million, subject to the satisfaction of certain conditions. Proceeds from the Unsecured Credit Facility and the Bank of America Unsecured Term Loan have been used for property acquisitions, working capital requirements and other general corporate purposes.

        On September 10, 2012, the Company paid down the remaining principal outstanding on the Wells Fargo Master Loan in the amount of $18.7 million. The Company previously made a prepayment of $105.0 million on August 15, 2012 with proceeds from its common stock offering that was completed on August 15, 2012. The early extinguishment of the Wells Fargo Master Loan resulted in a loss of $0.4 million as a result of the acceleration of the unamortized deferred financing fees. There were no pre-payment penalties associated with the loan.

        On November 8, 2012, certain of the Company's subsidiaries entered into a non-recourse secured loan facility with Wells Fargo Bank, N.A. The loan agreement is a commercial mortgage backed security that provides for a secured loan in the original principal amount of approximately $68.8 million.

Financial Covenant Considerations

        The Company's ability to borrow under the Unsecured Credit Facility, the Bank of America Unsecured Term Loan and the Wells Fargo Unsecured Term Loan (together, the Bank of America Unsecured Term Loan and the Wells Fargo Unsecured Term Loan are the "Unsecured Term Loans") is subject to its ongoing compliance with a number of customary financial covenants, including:

•

a maximum consolidated leverage ratio of not greater than 0.60:1.00;

•

a maximum secured leverage ratio of not greater than 0.45:1.00;

•

a maximum unencumbered leverage ratio of not greater than 0.60:100;

•

a maximum secured recourse debt ratio of not greater than 7.5%;

•

a minimum fixed charge ratio of not less than 1.50 to 1.00;

•

a minimum tangible net worth covenant test; and

•

various thresholds on Company level investments.

        The Credit Facility and Term Loans contain financial and operating covenants and restrictions. The Company was in compliance with all such restrictions and financial covenants as of December 31, 2013. In the event of a default related to the financing and operating covenants, the Company's dividend distributions are limited to the minimum amount necessary for the Company to maintain its status as a REIT.

        Each of the Sun Life loan, the Webster Bank loans, the Union Fidelity loan, the CIGNA-1 Facility, the CIGNA-2 Facility, the CIGNA-3 Facility and the CMBS Loan have specific properties and assignments of rents from leases on the properties, that are collateral for these loans. The acquisition costs of these properties were financed by the loans and by collateral assignments of the specific leases

F-31

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

5. Debt (Continued)

and rents. These debt facilities contain certain financial and other covenants. The Company was in compliance with all financial covenants as of December 31, 2013 and December 31, 2012. The real estate net book value of the properties that are collateral for the Company's debt arrangements was $262.7 million and $269.1 million at December 31, 2013 and December 31, 2012, respectively, and is limited to senior, property level secured debt financing arrangements. The 21 properties held as collateral for the CIGNA-1, CIGNA-2, and CIGNA-3 facilities are cross-defaulted and cross-collateralized, among the respective facilities.

Fair Value of Debt

        The fair value of the Company's debt was determined by discounting the future cash flows using the current rates at which loans would be made to borrowers with similar credit ratings and for loans with similar remaining maturities, similar terms, and similar loan-to-value ratios. The discount rates ranged from 1.57% to 5.24% and 1.86% to 4.64% at December 31, 2013 and December 31, 2012, respectively, and were applied to each individual debt instrument. The fair value of the Company's debt is based on Level 3 inputs. The following table presents the aggregate carrying value of the Company's debt and the corresponding estimate of fair value as of December 31, 2013 and December 31, 2012 (in thousands):

	December 31, 2013				December 31, 2012
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Mortgage notes payable	$	225,591	$	228,996	$	229,915	$	242,175
Unsecured Credit Facility	$	80,500	$	80,500	$	99,300	$	99,300
Bank of America Unsecured Term Loan	$	150,000	$	148,781	$	150,000	$	150,000
Wells Fargo Unsecured Term Loan	$	100,000	$	97,302	$	—	$	—

Future Principal Payments of Debt

        The following table reflects the Company's aggregate future principal payments of the Company's debt at December 31, 2013 (dollars in thousands):

2014	$	4,447
2015		4,688
2016		93,777
2017		165,506
2018		113,377
Thereafter		174,008
Total aggregate principal payments	$	555,803
Unamortized balance of historical fair value adjustments		288
Total carrying value of debt	$	556,091

F-32

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

6. Use of Derivative Financial Instruments

Risk Management Objective of Using Derivatives

        The Company's use of derivative instruments is limited to the utilization of interest rate swaps to manage interest rate risk exposures and not for speculative purposes. The principal objective of such arrangements is to minimize the risks and/or costs associated with the Company's operating and financial structure, as well as to hedge specific transactions.

        On September 14, 2012, the Company commenced a program of entering into seven interest rate swap agreements for notional amounts totaling $100 million with an effective date of October 10, 2012 that effectively convert the one-month LIBOR rate on $100.0 million of the $150.0 million Bank of America Unsecured Term Loan, from a variable rate of one-month LIBOR plus a spread based on the Company's consolidated leverage ratio to a fixed rate plus a spread based on the Company's consolidated leverage ratio. These swaps were designated as cash flow hedges of interest rate risk.

        On March 1, 2013, the Company entered into an interest rate swap agreement for notional amount of $25.0 million with an effective date of March 1, 2013 that converts the one-month LIBOR rate on the $25.0 million then outstanding balance of the Wells Fargo Unsecured Term Loan from a variable rate of one-month LIBOR plus a spread based on the Company's consolidated leverage ratio to a fixed rate of 1.33% plus a spread based on the Company's consolidated leverage ratio. This swap was designated as a cash flow hedge of interest rate risk.

        On June 13, 2013, the Company entered into two interest rate swap agreements for notional amounts of $50.0 million and $25.0 million with effective dates of July 1, 2013 and August 1, 2013 that convert the one-month LIBOR rate on the Wells Fargo Unsecured Term Loan from a variable rate of one-month LIBOR plus a spread based on the Company's consolidated leverage ratio to a fixed rate of 1.681% and 1.703%, respectively, plus a spread based on the Company's consolidated leverage ratio. These swaps were designated as cash flow hedges of interest rate risk.

        On September 30, 2013, the Company entered into an interest rate swap agreement for a notional amount of $25.0 million with an effective date of February 3, 2014 that converts the one-month LIBOR rate on the Wells Fargo Unsecured Term Loan from a variable rate of one-month LIBOR plus a spread based on the Company's consolidated leverage ratio to a fixed rate of 1.9925% plus a spread based on the Company's consolidated leverage ratio. This swap was designated as cash flow hedge of interest rate risk. The $25.0 million notional amount was drawn on January 30, 2014.

F-33

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

6. Use of Derivative Financial Instruments (Continued)

        The following table details the Company's outstanding interest rate swaps as of December 31, 2013 (collectively, the "Unsecured Term Loan Swaps") (in thousands):

Interest Rate Derivative	Trade Date	Notional Amount			Fixed Interest Rate			Variable Interest Rate	Maturity Date
Interest rate swap	Sept-14-2012	$	10,000	(1)		0.7945	%	One-month LIBOR	September 10, 2017
Interest rate swap	Sept-14-2012	$	10,000	(1)		0.7945	%	One-month LIBOR	September 10, 2017
Interest rate swap	Sept-14-2012	$	10,000	(1)		0.7945	%	One-month LIBOR	September 10, 2017
Interest rate swap	Sept-14-2012	$	10,000	(1)		0.7945	%	One-month LIBOR	September 10, 2017
Interest rate swap	Sept-14-2012	$	10,000	(1)		0.7975	%	One-month LIBOR	September 10, 2017
Interest rate swap	Sept-20-2012	$	25,000	(1)		0.7525	%	One-month LIBOR	September 10, 2017
Interest rate swap	Sept-24-2012	$	25,000	(1)		0.727	%	One-month LIBOR	September 10, 2017
Interest rate swap	March-1-2013	$	25,000	(2)		1.33	%	One-month LIBOR	February 14, 2020
Interest rate swap	June-13-2013	$	25,000	(2)		1.703	%	One-month LIBOR	February 14, 2020
Interest rate swap	June-13-2013	$	50,000	(2)		1.681	%	One-month LIBOR	February 14, 2020
Interest rate swap	Sept-30-2013	$	25,000	(2)		1.9925	%	One-month LIBOR	February 14, 2020

(1)

Fixes the interest rate of the Bank of America Unsecured Term Loan

(2)

Fixes the interest rate of the Wells Fargo Unsecured Term Loan

        STAG Predecessor Group entered into an interest rate swap ("Wells Fargo Master Loan Swap") with a notional amount of $141.0 million to hedge against interest rate risk on its then outstanding variable rate loan with Wells Fargo, which was part of the debt contributed to the Company in its Formation Transactions and subsequently paid down on September 10, 2012. The Wells Fargo Master Loan Swap was not designated as a hedge for accounting purposes and it expired on January 31, 2012.

        The fair value of the interest rate swaps outstanding as of December 31, 2013 and December 31, 2012 was as follows (in thousands):

	Balance Sheet Location(1)	Notional Amount December 31, 2013		Fair Value December 31, 2013		Notional Amount December 31, 2012		Fair Value December 31, 2012
Unsecured Term Loan Swaps	Interest Rate Swaps-Asset (Liability)	$	225,000	$	3,924	$	100,000	$	(480	)

(1)

The individual interest rate swaps' assets and liabilities are not netted on the accompanying Consolidated Balance Sheets.

Cash Flow Hedges of Interest Rate Risk

        The Company's objectives in using interest rate swaps are to add stability to interest expense and to manage its exposure to interest rate movements. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

        The effective portion of changes in the fair value of derivatives designated and qualified as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently

F-34

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

6. Use of Derivative Financial Instruments (Continued)

reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the years ended December 31, 2013 and December 31, 2012 the Company did not record any hedge ineffectiveness.

        Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the Company's variable-rate debt. The Company estimates that an additional $2.3 million will be reclassified from accumulated other comprehensive income (loss) as an increase to interest expense over the next 12 months.

        The table below details the location in the financial statements of the gain or loss recognized on interest rate swaps designated as cash flow hedges for the years ended December 31, 2013 and 2012, respectively (in thousands):

	STAG Industrial, Inc.
	Year ended December 31, 2013		Year ended December 31, 2012
Amount of income (loss) recognized in accumulated other comprehensive income (loss) on interest rate swaps (effective portion)	$	3,032	$	(608	)
Amount of loss reclassified from accumulated other comprehensive income (loss) into income (loss) as interest expense (effective portion)	$	1,373	$	128
Amount of loss recognized in income on swaps (ineffective portion and amount excluded from effectiveness testing)	$	—	$	—

        For the Wells Fargo Master Loan Swap, which was not designated as a hedge for accounting purposes and expired on January 31, 2012, the Company recognized gains relating to the change in fair market value of the interest rate swap of $0.2 million for the year ended December 31, 2012, $2.2 million for the period from April 20, 2011 to December 31, 2011, and $0.8 for the period from January 1, 2011 to April 19, 2011, which is included in gain on interest rate swaps on the accompanying Consolidated and Combined Statements of Operations.

        The Company is exposed to credit risk in the event of non-performance by the counterparties to the interest rate swaps. The Company minimizes this risk exposure by limiting counterparties to major banks and investment brokers who meet established credit and capital guidelines.

Credit-risk-related Contingent Features

        As of December 31, 2013, the fair values of all of the Company's interest rate swaps were in an asset position of $4.2 million excluding any adjustment for nonperformance risk related to these agreements. Accrued interest expense was $0.2 million as of December 31, 2013. As of December 31, 2013, the Company has not posted any collateral related to these agreements. The adjustment for nonperformance risk included in the fair value of the Company's net asset position was $0.3 million as of December 31, 2013.

F-35

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

6. Use of Derivative Financial Instruments (Continued)

Fair Value of Interest Rate Swaps

        The valuation of the interest rate swaps is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs including interest rate curves. The fair values of interest rate swaps are determined by using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. As of December 31, 2013 and December 31, 2012, the Company applied the provisions of this standard to the valuation of its interest rate swaps.

        The following sets forth the Company's financial instruments that are accounted for at fair value on a recurring basis as of December 31, 2013 and December 31, 2012 (in thousands):

			Fair Value Measurements as of December 31, 2013 Using:
	December 31, 2013		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Assets:
Interest Rate Swaps	$	3,924	$	—	$	3,924	$	—

				Fair Value Measurements as of December 31, 2012 Using:
	December 31, 2012			Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Unobservable Inputs (Level 3)
Liabilities:
Interest Rate Swaps	$	(480	)	$	—	$	(480	)	$	—

7. Equity

Preferred Stock

        Pursuant to its charter, the Company is authorized to issue 10,000,000 shares of preferred stock, par value $0.01 per share. On November 2, 2011, the Company completed an underwritten public offering of 2,760,000 shares (including 360,000 shares issued pursuant to the full exercise of the underwriters' overallotment option) of 9.0% Series A Cumulative Redeemable Preferred Stock, $0.01 par value per share (the "Series A Preferred Stock"), at a price to the public of $25.00 per share. Dividends on the Series A Preferred Stock are payable quarterly in arrears on or about the last day of March, June, September and December of each year. The Series A Preferred Stock ranks senior to the Company's common stock with respect to dividend rights and rights upon the liquidation, dissolution or winding up of the Company. The Series A Preferred Stock has no stated maturity date and is not subject to mandatory redemption or any sinking fund. Generally, the Company is not permitted to redeem the Series A Preferred Stock prior to November 2, 2016, except in limited circumstances

F-36

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

7. Equity (Continued)

relating to the Company's ability to qualify as a REIT and in certain other circumstances related to a change of control (as defined in the articles supplementary for the Series A Preferred Stock).

        On April 16, 2013, the Company completed an underwritten public offering of 2,800,000 shares (including 300,000 shares issued pursuant to the full exercise of the underwriters' overallotment option) of 6.625% Series B Cumulative Redeemable Preferred Stock, $0.01 par value per share (the "Series B Preferred Stock"), at a price to the public of $25.00 per share. The Company received net proceeds of $67.8 million, reflecting gross proceeds of $70.0 million net of the underwriters discount of $2.2 million. The Company also incurred direct offering costs of $0.2 million. The underwriters' discount of $2.2 million and $0.2 million of direct offering costs incurred are reflected as a reduction to additional paid-in capital in the Consolidated Balance Sheet of the Company. Dividends on the Series B Preferred Stock are payable quarterly in arrears on or about the last day of March, June, September and December of each year. The Series B Preferred Stock ranks senior to the Company's common stock and on parity with the Company's Series A Preferred Stock with respect to dividend rights and rights upon the liquidation, dissolution or winding up of the Company. The Series B Preferred Stock has no stated maturity date and is not subject to mandatory redemption or any sinking fund. Generally, the Company is not permitted to redeem the Series B Preferred Stock prior to April 16, 2018, except in limited circumstances relating to the Company's ability to qualify as a REIT and in certain other circumstances related to a change of control (as defined in the articles supplementary for the Series B Preferred Stock). The Company used the net proceeds to pay off the then outstanding amount due under the Unsecured Credit Facility and to fund acquisitions.

        The table below sets forth the dividends that have been declared by the Company's board of directors on the Series A Preferred Stock during the years ended December 31, 2013 and December 31, 2012, respectively:

Amount Declared During Quarter Ended 2013	Declaration Date	Per Share		Date Paid
December 31	November 1, 2013	$	0.5625	December 31, 2013
September 30	August 2, 2013		0.5625	September 30, 2013
June 30	May 6, 2013		0.5625	July 1, 2013
March 31	March 1, 2013		0.5625	April 1, 2013
Total 2013		$	2.25

Amount Declared During Quarter Ended 2012	Declaration Date	Per Share		Date Paid
December 31	November 2, 2012	$	0.5625	December 31, 2012
September 30	August 2, 2012		0.5625	October 1, 2012
June 30	May 15, 2012		0.5625	July 2, 2012
March 31	March 6, 2012		0.5625	April 2, 2012
Total 2012		$	2.25

F-37

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

7. Equity (Continued)

        The table below sets forth the dividends that have been declared by the Company's board of directors on the Series B Preferred Stock during the year ended December 31, 2013:

Amount Declared During Quarter Ended 2013	Declaration Date	Per Share		Date Paid
December 31	November 1, 2013	$	0.4140625	December 31, 2013
September 30	August 2, 2013		0.4140625	September 30, 2013
June 30 (prorated for April 16, 2013 to June 30, 2013)	May 6, 2013		0.3450500	July 1, 2013
Total 2013		$	1.1731750

Common Stock

        On April 20, 2011, the Company completed the IPO of its common stock. The IPO resulted in the sale of 13,750,000 shares of the Company's common stock at a price of $13.00 per share. The Company received net proceeds of $166.3 million, reflecting gross proceeds of $178.8 million, net of underwriting fees of $12.5 million. On May 13, 2011, the underwriters of the Company's IPO exercised their option to purchase an additional 2,062,500 shares of common stock at $13.00 per share, generating an additional $26.8 million of gross proceeds and $24.9 million of net proceeds after the underwriters' discount and offering costs. The total gross proceeds to the Company from the IPO and the exercise of the overallotment option was approximately $205.6 million. The Company incurred Formation Transaction costs and offering costs of $6.2 million, of which $3.7 million was expensed and the remaining $2.5 million was deducted from the gross proceeds of the IPO. Total underwriters' discounts, commissions and offering costs of $16.9 million are reflected as a reduction to additional paid-in capital on the Consolidated Balance Sheets of the Company.

        On May 29, 2012, the Company completed an underwritten public offering of 8,337,500 of shares common stock at a public offering price of $12.88 per share, inclusive of 1,087,500 shares issued pursuant to the full exercise of the underwriters' overallotment option. The Company received net proceeds of $102.8 million, reflecting gross proceeds of $107.4 million, net of underwriting discounts of $4.6 million. The Company also incurred direct offering costs of $0.5 million. The underwriters' discount of $4.6 million and $0.5 million of direct offering costs incurred are reflected as a reduction to additional paid-in capital on the Consolidated Balance Sheets of the Company. The Company also incurred $0.1 million of indirect offering costs, which are included in offering costs on the accompanying Consolidated and Combined Statements of Operations.

        On August 15, 2012, the Company completed an underwritten public offering of 9,200,000 of shares common stock at a public offering price of $14.15 per share, inclusive of 1,200,000 shares issued pursuant to the full exercise of the underwriters' option. The Company received net proceeds of $124.6 million, reflecting gross proceeds of $130.2 million, net of the underwriters' discount of $5.5 million. The Company also incurred direct offering costs of $0.2 million. The underwriters' discount of $5.5 million and $0.2 million of direct offering costs incurred are reflected as a reduction to additional paid-in capital on the Consolidated Balance Sheets of the Company.

F-38

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

7. Equity (Continued)

        On December 14, 2012, the Company announced that it had established an "at the market" ("ATM") stock offering program through which it may sell from time to time up to an aggregate of $75.0 million of its common stock through sales agents. During the years ended December 31, 2013 and December 31, 2012, the Company sold 2,672,692 and 298,000 shares of common stock, respectively, under its ATM. During the years ended December 31, 2013 and December 31, 2012, the Company received net proceeds of $53.9 million and $5.3 million, reflecting gross proceeds of $54.7 million and $5.4 million, net of the sales agents' fees of approximately $0.8 million and $0.1 million, respectively. The Company used the net proceeds for acquisitions and general corporate purposes. As of December 31, 2013, there was approximately $14.9 million of common stock available to be sold under the ATM.

        On January 22, 2013, the Company completed an underwritten public offering of 6,284,152 shares of common stock (including 819,672 shares issued pursuant to the full exercise of the underwriters' option) at a public offering price of $18.30 per share. The Company received net proceeds of $110.1 million, reflecting gross proceeds of $115.0 million net of the underwriters discount of $4.9 million. The Company also incurred direct offering costs of $0.2 million. The underwriters' discount of $4.9 million and $0.2 million of direct offering costs incurred are reflected as a reduction to additional paid-in capital on the Consolidated Balance Sheet of the Company. The Company used the proceeds to fully pay down the then outstanding balance on the Unsecured Credit Facility.

        On August 15, 2013, the Company's board of directors voted to increase the frequency of the payment of the Company's common stock dividend from quarterly to monthly. On September 24, 2013, the Company's board of directors declared dividends on the Company's common stock for each month of the fourth quarter of $0.10 per share, which equates to $0.30 per share on a quarterly basis.

        The table below sets forth the dividends that have been declared by the Company's board of directors on its common stock during the years ended December 31, 2013 and December 31, 2012, respectively:

Amount Declared During 2013	Declaration Date	Per Share		Date Paid
Month ended December 31	September 24, 2013	$	0.10	January 15, 2014
Month ended November 30	September 24, 2013		0.10	December 16, 2013
Month ended October 31	September 24, 2013		0.10	November 15, 2013
Quarter ended September 30	August 2, 2013		0.30	October 15, 2013
Quarter ended June 30	May 6, 2013		0.30	July 15, 2013
Quarter ended March 31	March 1, 2013		0.30	April 15, 2013
Total 2013		$	1.20

Amount Declared During Quarter Ended 2012	Declaration Date	Per Share		Date Paid
December 31	November 2, 2012	$	0.27	January 15, 2013
September 30	August 2, 2012		0.27	October 15, 2012
June 30	May 15, 2012		0.27	July 13, 2012
March 31	March 6, 2012		0.26	April 13, 2012
Total 2012		$	1.07

F-39

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

7. Equity (Continued)

        On December 18, 2013, the Company's board of directors approved a 5% increase in the Company's annual common stock dividend from the 2013 annual rate of $1.20 per share to $1.26 per share commencing with the payment of the January 2014 common stock dividend to be paid in February 2014.

        All of the Company's independent directors elected to receive shares of common stock in lieu of cash for their fees for serving as members of the board and/or chairmen of various committees during 2013 and 2012. The shares of common stock are issued to the independent directors pursuant to the STAG Industrial, Inc. 2011 Equity Incentive Plan, as amended (the "2011 Plan"). The number of shares of common stock granted is calculated based on the trailing 10-day average common stock price ending on the third business day preceding the grant date. The fair value of the shares of the common stock granted is calculated based on the closing stock price per the NYSE on the grant date multiplied by the number of shares of common stock granted. The table below sets forth the grants of common stock for the members' service during quarters ended in 2013 and 2012 as below:

Service During Quarter Ended 2013	Grant Date	Shares		Fair Value
December 31	January 15, 2014		2,554	$	52,000
September 30	October 15, 2013		2,607		53,000
June 30	July 15, 2013		2,602		53,000
March 31	April 15, 2013		2,418		52,000
Total 2013			10,181	$	210,000

Service During Quarter Ended 2012	Grant Date	Shares		Fair Value
December 31	January 15, 2013		2,851	$	54,000
September 30	October 15, 2012		2,876		49,000
June 30	July 13, 2012		3,108		46,000
March 31	April 13, 2012		3,776		50,000
Total 2012			12,611	$	199,000

Restricted Stock-Based Compensation

        Concurrently with the closing of the IPO, the Company granted a total of 80,809 restricted shares of common stock with a fair value of $1.0 million ($12.21 per share) to certain employees of the Company pursuant to the 2011 Plan. The shares of restricted common stock are subject to time-based vesting and will vest, subject to the recipient's continued employment, in five equal installments on each anniversary of the date of grant. Holders of restricted stock have voting rights and rights to receive dividends. Restricted stock may not be sold, assigned, transferred, pledged or otherwise disposed of and is subject to a risk of forfeiture prior to the expiration of the applicable vesting period. The restricted stock fair value on the date of grant is amortized on a straight-line basis as non-cash compensation expense over the service period during which term the stock fully vests.

        On January 3, 2012, the Company granted 87,025 shares of time-based restricted common stock to certain employees of the Company pursuant to the 2011 Plan, with a fair value of $1.0 million ($11.89 per share).

F-40

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

7. Equity (Continued)

        On January 3, 2013, the Company granted 106,268 shares of time-based restricted common stock to certain employees of the Company pursuant to the 2011 Plan, with a fair value of $1.9 million ($18.11 per share).

        During the years ended December 31, 2013, December 31, 2012 and the period April 20, 2011 to December 31, 2011, 32,012, 16,161 and 0 restricted shares vested with fair values of $0.6 million, $0.2 million and $0, respectively. The Company recognizes non-cash compensation expense ratably over the vesting period, and accordingly, the Company recognized $0.8 million and $0.4 million in non-cash compensation expense related to restricted shares for the years ended December 31, 2013 and December 31, 2012, respectively. Unrecognized compensation expense for the remaining life of these awards was $2.5 million and $1.5 million as of December 31, 2013 and December 31, 2012, respectively. As of December 31, 2013 and December 31, 2012, there were 11,540 and 1,559 forfeitures of shares of restricted common stock, respectively.

8. Noncontrolling Interest

        Noncontrolling interests in the Operating Partnership are interests in the Operating Partnership that are not owned by the Company. As of December 31, 2013, noncontrolling interests consisted of 6,299,186 Common Units and 599,464 LTIP units, which in total represented an approximately 13.35% limited partnership interest in the Operating Partnership. As of December 31, 2012, noncontrolling interests consisted of 5,743,958 Common Units and 413,551 LTIP units, which in total represented an approximately 14.71% limited partnership interest in the Operating Partnership. The Company adjusts the carrying value of noncontrolling interest to reflect its share of the book value of the Operating Partnership when there has been a change in the Company's ownership of the Operating Partnership. Such adjustments are recorded to additional paid-in capital as a rebalancing of noncontrolling interest on the accompanying Consolidated Statements of Equity.

Common Units

        The Common Units issued at the time of the Formation Transactions were issued at fair value for an issuance price of $13.00 per Common Unit. Common Units and shares of the Company's common stock have essentially the same economic characteristics in that Common Units and shares of the Company's common stock share equally in the total net income or loss distributions of the Operating Partnership. Investors who own Common Units have the right to cause the Operating Partnership to redeem any or all of their Common Units for cash equal to the then-current market value of one share of the Company's common stock, or, at the Company's election, shares of common stock on a one-for-one basis. All Common Units will receive the same monthly distribution as the per share dividends on common stock. During the years ended December 31, 2013 and December 31, 2012, 2,186 and 1,861,831 Common Units were redeemed on a one-for-one basis for shares of common stock, respectively.

        On June 15, 2012, the Company acquired six industrial properties for which it paid an acquisition fee in the form of 15,789 Common Units in the Operating Partnership with a fair value of approximately $0.2 million, which is included in property acquisition costs on the accompanying Consolidated Statements of Operations. The issuance of the Common Units was effected in reliance upon an exemption from registration provided by Section 4(2) under the Securities Act of 1933, as

F-41

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

8. Noncontrolling Interest (Continued)

amended. The Company relied on the exemption based on representations given by the holders of the Common Units.

        As partial consideration for eight buildings acquired on June 19, 2013, the Company granted 555,758 Common Units in the Operating Partnership with a fair value of approximately $11.5 million based on the Company's NYSE closing stock price on June 19, 2013. The issuance of the Common Units was effected in reliance upon an exemption from registration provided by Section 4(2) under the Securities Act of 1933, as amended. The Company relied on the exemption based on representations given by the holders of the Common Units.

LTIP Units

        Pursuant to the 2011 Plan, the Company may grant LTIP units in the Operating Partnership. LTIP units, which the Company grants either as free-standing awards or together with other awards under the 2011 Plan, are valued by reference to the value of the Company's common stock, and are subject to such conditions and restrictions as the compensation committee may determine, including continued employment or service, computation of financial metrics and achievement of pre-established performance goals and objectives. Vested LTIP units can be converted to Common Units in the Operating Partnership on a one-for-one basis once a material equity transaction has occurred that results in the accretion of the member's capital account to the economic equivalent of the Common Unit. As of December 31, 2013, all of the outstanding LTIP units have met the aforementioned criteria and holders have the ability to convert the LTIP units to Common Units. All LTIP units, whether vested or not, will receive the same monthly per unit distributions as Common Units, which equal per share dividends on common stock.

        Concurrently with the closing of the IPO, pursuant to the 2011 Plan, the Company granted a total of 159,046 LTIP units to certain executive officers pursuant to the terms of their employment agreements and a total of 41,395 LTIP units to its non-employee independent directors. These LTIP units vest quarterly over five years, with the first vesting date having commenced on June 30, 2011. On January 3, 2012, the Company granted a total of 196,260 LTIP units to certain executive officers and 22,380 LTIP units to its non-employee, independent directors pursuant to the 2011 Plan. The fair value of the LTIP units was approximately $2.3 million and $2.5 million at the April 20, 2011 and January 3, 2012 grant dates, respectively, which was determined by a lattice binomial option-pricing model based on a Monte Carlo simulation using a volatility factor of 55% and 50%, a risk-free interest rate of 2.10% and 3.40%, an expected annual dividend yield of 6.0% and 6.5% and terms of 10 years, respectively.

        On January 3, 2013, the Company granted a total of 173,044 LTIP units to certain executive officers and 14,525 LTIP units to its non-employee, independent directors pursuant to the 2011 Plan. The fair value of the LTIP units was approximately $3.3 million, which was determined by a lattice binomial option-pricing model based on a Monte Carlo simulation using a volatility factor of 45%, a risk-free interest rate of 1.97%, an expected annual dividend yield of 6.0% and a term of 10 years.

        During the years ended December 31, 2013, December 31, 2012 and the period April 20, 2011 to December 31, 2011, 119,852, 82,440 and 30,066 LTIP units vested with fair values of $2.4 million, $1.3 million and $0.3 million, respectively. During the year ended December 31, 2013, 1,656 LTIP units were redeemed for Common Units. During the year ended December 31, 2013, there were no forfeitures of LTIP units. On May 7, 2012, the Company's non-employee director, Edward F. Lange, did

F-42

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

8. Noncontrolling Interest (Continued)

not stand for re-election. Consequently, he forfeited 10,875 unvested LTIP units and the Company expensed the dividends previously paid to Mr. Lange on the unvested LTIP units in the amount of $8 thousand. On July 17, 2012, the Board of Directors elected Christopher P. Marr to serve as a director of the Company, Chairman of the Company's Nominating and Corporate Governance Committee and a member of the Company's Compensation Committee, effective August 2, 2012. On August 2, 2012 the Company granted Mr. Marr 5,345 LTIP units with a fair value of $0.1 million.

        The Company recognized $1.6 million, $0.9 million in non-cash compensation expense for the years ended December 31, 2013 December 31, 2012, and $0.3 million for the period from April 20, 2011 to December 31, 2011. The Company recognized zero non-cash compensation expense for the period from January 1, 2011 to April 19, 2011. Unrecognized compensation expense was $5.2 million, $3.5 million and $2.0 million related to the LTIP units at December 31, 2013, December 31, 2012 and December 31, 2011, respectively, and is included in additional paid-in capital on the accompanying Consolidated Statements of Equity.

9. Future Minimum Rents

        The Company's properties are leased to tenants under triple net, modified, and gross leases. Minimum lease payments receivable, excluding tenant reimbursement of expenses, under non-cancelable operating leases in effect as of December 31, 2013 are approximately as follows (in thousands):

2014	$	134,391
2015		121,243
2016		106,356
2017		85,455
2018		66,355
Thereafter		211,117

        No single tenant represented more than 10% of the Company's total rental income for the years ended December 31, 2013, December 31, 2012, the periods from April 20, 2011 to December 31, 2011 and January 1, 2011 to April 19, 2011.

10. Earnings Per Share

        A participating security is defined by GAAP as an unvested stock-based payment award containing non-forfeitable rights to dividends and must be included in the computation of earnings per share pursuant to the two-class method. Unvested restricted stock awards are considered participating securities as these stock-based awards contain non-forfeitable rights to dividends irrespective of whether the awards ultimately vest or expire. During the years ended December 31, 2013, December 31, 2012 and the period April 20, 2011 to December 31, 2011, there were 218,934, 155,488 and 80,809, respectively, unvested shares of restricted stock on a weighted average basis that were considered participating securities, which were not dilutive. For purposes of calculating basic and diluted earnings per share, awards under the 2011 Outperformance Program (the "OPP") (to be discussed in Note 14) are considered contingently issuable shares. Because the OPP awards require the Company to outperform absolute and relative return thresholds, unless such thresholds have been met by the end of the applicable reporting period, the Company excludes the awards from the basic and diluted earnings

F-43

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

10. Earnings Per Share (Continued)

per share calculation. As of December 31, 2013 and December 31, 2012, the absolute and relative return thresholds were met; however, the OPP awards have been excluded from the diluted earnings per share calculation as they were anti-dilutive. As of December 31, 2011, the absolute and relative return thresholds were not met. In no event will the 2011 OPP awards be earned and paid out unless the absolute and relative prefomance thesholds are met on September 20, 2014

        The following tables set forth the computation of basic and diluted earnings per common share for the years ended December 31, 2013, December 31, 2012 and the period from April 20, 2011 to December 31, 2011, respectively (in thousands, except share data).

	Year ended December 31, 2013
Numerator
Net income from continuing operations	$	106
Less: preferred stock dividends		9,495
Less: amount allocable to unvested restricted stockholders		262
Less: noncontrolling interest after preferred stock dividends allocable to continuing operations		(1,267	)
Loss from continuing operations available to common stockholders	$	(8,384	)
Income attributable to discontinued operations	$	4,796
Less: noncontrolling interest allocable to discontinued operations		647
Income from discontinued operations attributable to common stockholders	$	4,149
Denominator
Weighted average common shares outstanding—basic and diluted		42,364,125
Loss from continuing operations attributable to common stockholders	$	(0.20	)
Income from discontinued operations attributable to common stockholders		0.10
Loss per share—basic and diluted	$	(0.10	)

F-44

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

10. Earnings Per Share (Continued)

	Year ended December 31, 2012
Numerator
Net loss from continuing operations	$	(7,817	)
Less: preferred stock dividends		6,210
Less: amount allocable to unvested restricted stockholders		122
Less: noncontrolling interest after preferred stock dividends allocable to continuing operations		(3,180	)
Loss from continuing operations available to common stockholders	$	(10,969	)
Loss attributable to discontinued operations	$	(2,382	)
Less: noncontrolling interest allocable to discontinued operations		(540	)
Loss from discontinued operations attributable to common stockholders	$	(1,842	)
Denominator
Weighted average common shares outstanding—basic and diluted		25,046,664
Loss from continuing operations attributable to common stockholders	$	(0.44	)
Loss from discontinued operations attributable to common stockholders		(0.07	)
Loss per share—basic and diluted	$	(0.51	)

	Period from April 20, 2011 to December 31, 2011
Numerator
Net loss from continuing operations	$	(10,510	)
Less: preferred stock dividends		1,018
Less: Amount allocable to unvested restricted stockholders		—
Less: noncontrolling interest after preferred stock dividends allocable to continuing operations		(3,821	)
Loss from continuing operations available to common stockholders	$	(7,707	)
Income attributable to discontinued operations	$	1,283
Less: noncontrolling interest allocable to discontinued operations		425
Income from discontinued operations available to common stockholders	$	858
Denominator
Weighted average common shares outstanding—basic and diluted		15,630,910
Loss from continuing operations attributable to common stockholders	$	(0.49	)
Income from discontinued operations attributable to common stockholders		0.05
Loss per common share—basic and diluted	$	(0.44	)

        Earnings (loss) per share are not presented for the period January 1, 2011 to April 19, 2011 as the IPO did not close until April 20, 2011.

F-45

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

11. Commitments and Contingencies

        The Company is subject to various legal proceedings and claims that arise in the ordinary course of business. These matters are generally covered by insurance subject to deductible requirements. Management believes that the ultimate settlement of these actions will not have a material adverse effect on the Company's financial position, results of operations or cash flows

        On April 18, 2012, the Company entered into an agreement with affiliates of Columbus Nova Real Estate Acquisition Group, Inc. ("Columbus Nova") to source sale leaseback transactions for potential acquisitions by the Company. The agreement called for various fees to be paid to Columbus Nova for its services including acquisition fees and a one-time incentive fee if certain performance thresholds are met. On June 15, 2012, the Company acquired six industrial properties for an aggregate purchase price of approximately $30.0 million directly from Columbus Nova that are subject to the one-time incentive fee. To the extent the Company has received a 10% internal rate of return on its invested equity on May 31, 2017, Columbus Nova will earn 20% of the returns exceeding the 10% internal rate of return. The returns will be calculated based on distributions from June 15, 2012 through May 31, 2017 and a hypothetical liquidation of the ending value of the properties owned at May 31, 2017 to be valued by third party appraisers. The fee, if any, will be paid in common stock or cash at the Company's discretion and subject to certain conditions. The fair value of the incentive fee will be measured at each balance sheet date and, to the extent there is value in the incentive fee, it will be recognized as a liability. The hypothetical liquidation of the ending value of the properties was determined using a discounted cash flow analysis. The estimated cash flows used are based on the Company plans for the property and views of market and economic conditions. The estimates consider items such as market capitalization rates, discount rates, current and future rental rates, estimated operating and capital expenditures, and estimated downtime. These estimates are prepared using known data at comparable Company owned properties as well market data obtained from third party sources such as real estate leasing and brokerage firms. As of December 31, 2013 and December 31, 2012, respectively, the fair value of the incentive fee was zero. The fair value was calculated using the following key Level 3 inputs: discount rate of approximately 9.5%, exit capitalization rate of 9.0%, and market rent and expense growth rates of 1% to 3%.

Ground and Operating Lease Agreements

        The Company is the lessee for five separate ground leases. The Company incurred ground rent expense of $0.4 million for the year ended December 31, 2013, $0.2 million for the year ended December 31, 2012, $0.1 million and $0 for the periods April 20, 2011 to December 31, 2011 and January 1, 2011 to April 19, 2011, respectively. One ground lease expires in December 2023 and one ground lease expires in April 2048 both with options to extend.

        On October 9, 2012, the Company acquired two adjacent buildings that are subject to one non-cancelable operating ground lease agreement which commenced on May 1, 1994 and has a forty year term expiring April 30, 2034. The ground lease provides for monthly minimum rent and future rent increases. For the year ended December 31, 2013 and the period from October 9, 2012 to December 31, 2012, the Company expensed ground lease payments under this operating lease in the amount of $0.1 million and $33 thousand, respectively. Rent adjustments are every five years on the basis of increases in the Consumer Price Index ("CPI") or fair market value pursuant to certain clauses in the lease agreement.

F-46

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

11. Commitments and Contingencies (Continued)

        On July 31, 2013, the Company acquired one building that is subject to a non-cancelable operating ground lease agreement which commenced on July 1, 2013 and is set to expire on June 30, 2033, with options to extend. The ground lease provides for monthly ground rent and future rent increases. Rent adjustments are every five years on the basis of increases in the CPI pursuant to certain clauses in the lease agreement. The Company incurred rent expense of $20 thousand for the period from July 31, 2013 to December 31, 2013. The terms of the remaining ground lease is discussed further below.

        The Company is also the lessee for three operating leases that expire in May 2014, May 2016 and March 2021, and the Company incurred rent expense of $0.5 million, $0.4 million, $0.3 million and $0 for the years ended December 31, 2013 and December 31, 2012, for the periods April 20, 2011 to December 31, 2011 and January 1, 2011 to April 19, 2011, respectively.

        Future minimum rental payments under the terms of the fixed non-cancelable ground leases and operating leases under which the Company is the lessee as of December 31, 2013 are as follows (in thousands):

2014(1)	$	1,134
2015(1)		1,433
2016(1)		1,201
2017(1)		1,029
2018(1)		1,134
Thereafter(1)		9,246

(1)

Future minimum rent payments do not include estimates of CPI rent changes required by the lease agreements. Therefore, actual minimum rental payments may differ than those presented.

        On October 9, 2012, the Company acquired one building that is subject to a non-cancelable operating ground lease agreement which commenced on October 28, 1996 and is set to expire on December 31, 2038. The ground lease provides for monthly ground rent and future rent increases. Rent adjustments are every five years on the basis of increases in the CPI pursuant to certain clauses in the lease agreement. The tenant in the building is obligated to pay directly to the land owner their obligations under their lease related to the ground lease payments assumed by the tenant. To the extent the tenant fails to make the ground lease payments, the Company would recognize the expense for the obligation. The Company estimates that the ground lease payments, which are the responsibility of the tenant, were approximately $0.1 million and $33 thousand for the year ended December 31, 2013 and the period from October 9, 2012 to December 31, 2012. As the future payments are not fixed and payment is the responsibility of the tenant, the amounts were not included in the table above.

12. Concentrations of Credit Risk

        Concentrations of credit risk arise when a number of tenants related to the Company's investments or rental operations are engaged in similar business activities, are located in the same geographic region, or have similar economic features that would cause their inability to meet contractual obligations, including those to the Company, to be similarly affected. The Company regularly monitors its tenant base to assess potential concentrations of credit risk. Management believes the current credit risk portfolio is reasonably well diversified and does not contain any unusual concentration of credit risk. No single tenant accounted for more than 10% of rental income for the years ended

F-47

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

12. Concentrations of Credit Risk (Continued)

December 31, 2013, December 31, 2012 and the period ended from April 20, 2011 to December 31, 2011. No tenant accounted for more than 10% of the Predecessor's related income for the period from January 1, 2011 to April 19, 2011. Recent developments in the general economy and the global credit markets have had a significant adverse effect on companies in numerous industries. The Company has tenants concentrated in various industries that may be experiencing adverse effects from the current economic conditions and the Company could be adversely affected if such tenants default on their leases. The Company has tenants concentrated in three industries, Automotive, Containers & Packaging, and Industrial Equipment, Component and Metals.

13. Employee Benefit Plans

        Effective April 20, 2011, the Company adopted a 401(k) Defined Contribution Savings Plan (the "Plan") for its employees. Under the Plan, as amended, employees, as defined, are eligible to participate in the Plan after they have completed three months of service. The Company provides a discretionary match of 50% of the employee's contributions annually up to 6.0% of the employee's annual salary. The Company's aggregate matching contribution for the years ended December 31, 2013, December 31, 2012 and for the period April 20, 2011 through December 31, 2011was $0.1 million, $0.1 million and $46 thousand, respectively. The Company's contribution is subject to a three-year vesting schedule.

14. Equity Incentive Plan

        On April 1, 2011, the Company adopted, and the Company's stockholders approved, the 2011 Plan. The 2011 Plan provides for the issuance of equity-based awards, including stock options, stock appreciation rights, restricted stock, restricted stock units, unrestricted stock awards and other awards based on shares of the Company's common stock, such as LTIP units in the Operating Partnership, that may be made by the Company directly to the executive officers, directors, employees and other individuals providing bona fide services to or for the Company.

        Subject to certain adjustments identified within the 2011 Plan, the aggregate number of shares of the Company's common stock that were available for issuance under awards granted was 1,755,187 shares. At their annual meeting on May 6, 2013, the stockholders of the Company approved an amendment to the 2011 Plan that increased the number of shares of common stock that may be awarded under the 2011 Plan by 1,887,274 shares to an aggregate of 3,642,461 shares (7.5% of the shares of common stock and common units (including LTIP units) issued and outstanding as of March 27, 2013). Under the 2011 Plan, each LTIP unit awarded will be equivalent to an award of one share of common stock reserved under the 2011 Plan, thereby reducing the number of shares of common stock available for other equity awards on a one-for-one basis.

        Each stock option and stock appreciation right granted under the 2011 Plan will have a term of no longer than 10 years, and will have an exercise price that is no less than 100% of the fair market value of the Company's common stock on the date of grant of the award. Stock appreciation rights confer on the participant the right to receive cash, common stock or other property, as determined by the 2011 Plan administrator, equal to the excess of the fair market value of the Company's common stock on the date of exercise over the exercise price of the stock appreciation right. The other terms of stock options and stock appreciation rights granted by the Company will be determined by the 2011 Plan administrator.

F-48

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

14. Equity Incentive Plan (Continued)

        The 2011 Plan may be terminated, amended, modified or suspended at any time by the board of directors, subject to stockholder approval as required by law or stock exchange rules. The 2011 Plan expires on March 31, 2021.

        On September 20, 2011, the compensation committee of the Company's board of directors approved the OPP under the 2011 Plan to provide certain key employees of the Company or its affiliates with incentives to contribute to the growth and financial success of the Company. The OPP utilizes total stockholder return over a three-year measurement period as the performance measurement.

        Recipients of awards under the OPP will share in an outperformance pool if the Company's total stockholder return, including both share appreciation and dividends, exceeds an absolute hurdle over a three-year measurement period from September 20, 2011 to September 20, 2014 (the "measurement period"), based on a beginning value of $12.50 per share of the Company's common stock as well as a relative hurdle based on the MSCI US REIT Index. The aggregate reward that all recipients collectively can earn, as measured by the outperformance pool, is capped at $10.0 million.

        Provided the Company's increase in cumulative absolute total stockholder return over the three-year measurement period is equal to or greater than 25% (the "threshold percentage"), the outperformance pool will consist of 10% of the excess total stockholder return above a relative total stockholder return hurdle. The hurdle is equal to the total return of the MSCI US REIT Index plus five percentage points over the measurement period. No awards will be granted under the OPP if the Company's absolute total stockholder return is below the threshold percentage. If the Company's total stockholder return is equal to or in excess of the threshold percentage and greater than the relative total stockholder return hurdle, then the award recipients will be entitled to the payments described below.

        Each participant's award under the OPP is designated as a specified percentage of the aggregate outperformance pool. Assuming the applicable absolute and relative total stockholder return thresholds are achieved at the end of the measurement period, the outperformance pool will be calculated and then allocated among the award recipients in accordance with each individual's percentage. The award will be paid in the form of fully vested shares of the Company's common stock, unless the compensation committee elects, with the award recipient's consent, to issue the award recipient other securities or to make a cash payment to the award recipient equal to the award recipient's share of the outperformance pool. The number of shares of common stock earned by each award recipient will be determined at the end of the measurement period by dividing the recipient's share of the outperformance pool by the closing price of the Company's common stock on the valuation date. On September 26, 2011, the compensation committee awarded 100% of the interests in the OPP to key employees of the Company.

        The awards provided to the employees will vest 100% at the end of the measurement period provided that the award recipient is a service provider to the Company. To the extent the employee is terminated without cause, the awards will have vested based on the number of days during the measurement period that they are considered a service provider to the Company.

        The OPP awards were valued at approximately $1.2 million utilizing a Monte Carlo simulation to estimate the probability of the performance conditions being satisfied. The Monte Carlo simulation used a statistical formula underlying the Black-Scholes and binomial formulas and such simulation was

F-49

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

14. Equity Incentive Plan (Continued)

run approximately 100,000 times. For each simulation, the payoff is calculated at the settlement date, which is then discounted to the award date at a risk-free interest rate. The average of the values over all simulations is the expected value of the award on the award date. Assumptions used in the valuations included (i) factors associated with the underlying performance of the Company's stock price and total stockholder return over the term of the performance awards including total stock return volatility and risk-free interest and (ii) factors associated with the relative performance of the Company's stock price and total stockholder return when compared to the MSCI US REIT Index. The valuation was performed in a risk-neutral framework, so no assumption was made with respect to an equity risk premium. The fair value of the OPP awards was estimated on the date of grant using the following assumptions in the Monte- Carlo valuation: expected price volatility for the Company and the MSCI US REIT Index of 55% and 59.3%, respectively, and a risk free rate of 0.3423%. The expense associated with the value of the OPP awards will be amortized on a straight-line basis over the measurement period. The Company recognized $0.4 million, $0.4 million and $0.1 million in compensation expense associated with the OPP during the years ended December 31, 2013, December 31, 2012 and the period from April 20, 2011 to December 31, 2011, respectively.

        The Company issued 106,268, 87,025 and 80,809 shares of restricted stock and 187,569, 223,985 and 200,441 of LTIP units during the years ended December 31, 2013, December 31, 2012 and the period from April 20, 2011 to December 31, 2011, respectively. Dividends paid on both vested and unvested shares of restricted stock are charged directly to common stock dividends in excess of earnings on the Consolidated Balance Sheets. Non-cash compensation expense associated with shares issued to directors, restricted stock, LTIP units, and the OPP was approximately $3.0 million, $1.9 million and $0.7 million for the years ended December 31, 2013, December 31, 2012 and the period April 20, 2011 to December 31, 2011, respectively. The unrecognized compensation expense associated with the LTIP units, the restricted stock, and the OPP awards was $5.2 million, $2.5 million and $0.3 million, respectively, at December 31, 2013 and is expected to be recognized over a weighted average period of approximately 3.3 years. The unrecognized compensation expense associated with the LTIP units, the restricted stock, and the OPP awards was $3.5 million, $1.5 million and $0.7 million, respectively, at December 31, 2012 and is expected to be recognized over a weighted average period of approximately 3.5 years. As of December 31, 2013 and December 31, 2012, there were 214,389 and 150,114 of unvested restricted stock and 368,760 and 301,043 of LTIP units outstanding, respectively.

        At December 31, 2013 and December 31, 2012, the number of shares available for issuance under the 2011 Plan was 2,778,779 and 1,175,362, respectively. This does not include an allocation for the OPP as the awards were not determinable as of December 31, 2013 and December 31, 2012. Additionally, there have been no shares or units issued under the OPP as of December 31, 2013.

15. Related-Party Transactions

        On June 6, 2007, STAG Predecessor Group entered into a loan guarantee agreement with an affiliate of NED Credit Inc. The loan guarantee was for the Anglo Irish bridge loan dated August 11, 2006 and amended on June 6, 2007, which was paid in full at the IPO. STAG Predecessor Group agreed to pay the guarantor an annual fee for the guarantor's provision of the guaranty in an amount equal to nine percent (9.0%) per annum of the outstanding balance of the bridge loan. STAG Predecessor Group expensed $0.9 million in such guarantee fees, which are included in interest expense on the Consolidated and Combined Statements of Operations, for the period January 1, 2011 to

F-50

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

15. Related-Party Transactions (Continued)

April 19, 2011. Subsequent to the Formation Transactions, the Company was not responsible for bridge loan guarantee fees.

        Prior to the IPO, STAG Predecessor Group was obligated to pay asset management fees to an affiliate, STAG Capital Partners, LLC (the "Management Company") in consideration of the Management Company's agreement that it provide reasonable and customary advisory and asset management services to STAG Predecessor Group. STAG Predecessor Group expensed $0.2 million in such asset management fees for the period January 1, 2011 to April 19, 2011. Subsequent to the Formation Transactions, the Company no longer incurs asset management fees to the Management Company.

        As part of the Formation Transactions, the Company formed a new management company, STAG Industrial Management, LLC (the "Manager"), which is a subsidiary of the Company. The Manager is performing certain asset management services for STAG Investments II, LLC ("Fund II"), a private, fully-invested fund that is an affiliate of the Company and owned 44 buildings with approximately 7.4 million rentable square feet as of December 31, 2013. The Manager is paid an annual asset management fee based on the equity investment in the Fund assets, which is 1.25% of the equity investment. In June 2013, Fund II and the Company amended the Service Agreement to exclude disposition services from the asset management services to be performed by the Company and results in a concomitant reduction in the asset management fee. The Company recognized asset management fee income of $0.8 million, $1.1 million and $0.9 million for the years ended December 31, 2013, December 31, 2012 and for the period from April 20, 2011 to December 31, 2011, respectively, which is included in other income on the accompanying Consolidated Statements of Operations. As of December 31, 2013 and December 31, 2012, the Company had a receivable in the amount of $0.2 million and $0.5 million related to the asset management fee income included within due from related parties on the accompanying Consolidated Balance Sheets, which was subsequently received on February 7, 2014 and January 17, 2013, respectively.

        While most of the real estate assets of Fund III comprise the assets of the STAG Predecessor Group, Fund III retained ownership of the Option Properties. The Manager had entered into a services agreement with Fund III pursuant to which it would manage the Option Properties for an annual fee of $30 thousand per property, and would provide the limited administrative services (including preparation of reports for the Fund III lender and investors, bookkeeping, tax and accounting services) that Fund III will require, for an annual fee of $20 thousand. As the last remaining Option Property was sold in 2013, the Manager will only receive the annual fee of $20 thousand until Fund III's liquidation.

        STAG Investments IV, LLC ("Fund IV"), as part of the STAG Contribution Group, contributed all of its real estate assets to the Company. The Manager had entered into a services agreement with Fund IV pursuant to which it would provide the limited administrative services (including preparation of reports for the Fund IV investors, bookkeeping, tax and accounting services) that Fund IV would require until its liquidation for an annual fee of $20 thousand. Fund IV was liquidated on September 10, 2012 and, as a result, the Manager no longer receives an annual fee.

        On October 9, 2012, the Company acquired 31 industrial properties representing 4.3 million square feet for a purchase price of $127.6 million from STAG Investments Holdings II, LLC, a wholly owned subsidiary of Fund II, which are related parties of the Company through common management. A special committee of independent members of the Board was formed to address conflicts arising from the common management. The special committee engaged its independent counsel and broker to

F-51

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

15. Related-Party Transactions (Continued)

manage the acquisition. On October 31, 2012, the Company acquired one additional industrial property from the Fund for a purchase price of $5.0 million. On April 5, 2013, the Company acquired an additional industrial property from the Fund for the purchase price of $6.2 million. The acquisitions were funded using draws from the Unsecured Credit Facility. The Manager and its predecessor, the Management Company, served as the asset manager of Fund II for all periods presented. At December 31, 2012, the due from related parties on the accompanying Consolidated Balance Sheets included $0.2 million due from the Fund related to a true-up of final settlement statement pro-rations, and the amount was subsequently received on February 27, 2013.

16. Selected Interim Financial Information (unaudited)

        The tables below reflect the Company's selected quarterly information for the quarters ended December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012, June 30, 2012, March 31, 2012.

	STAG Industrial, Inc.
	Quarter ended December 31, 2013		Quarter ended September 30, 2013			Quarter ended June 30, 2013			Quarter ended March 31, 2013
Total revenue	$	37,418	$	34,644		$	31,842		$	29,988
Income (loss) from continuing operations	$	1,126	$	265		$	(738	)	$	(547	)
Net income (loss) attributable to the common stockholders	$	2,098	$	(2,147	)	$	(2,410	)	$	(1,775	)
Income (loss) per share—basic and diluted	$	0.05	$	(0.05	)	$	(0.06	)	$	(0.04	)

	STAG Industrial, Inc.
	Quarter ended December 31, 2012			Quarter ended September 30, 2012			Quarter ended June 30, 2012			Quarter ended March 31, 2012
Total revenue	$	26,877		$	20,878		$	19,116		$	17,181
Income (loss) from continuing operations	$	(2,973	)	$	(1,371	)	$	(2,028	)	$	(1,445	)
Net income (loss) attributable to the common stockholders	$	(3,372	)	$	(5,262	)	$	(2,235	)	$	(1,942	)
Income (loss) per share—basic and diluted	$	(0.10	)	$	(0.18	)	$	(0.11	)	$	(0.12	)

        Total revenue and income (loss) from continuing operations presented in the tables above will not agree to previously filed financial statements on Forms 10-Q due to the reclassification of amounts from continuing operations to discontinued operations for property sales. Refer to Note 3 for the details of properties sold.

17. Subsequent Events

        GAAP requires an entity to disclose events that occur after the balance sheet date but before financial statements are issued or are available to be issued ("subsequent events") as well as the date through which an entity has evaluated subsequent events. There are two types of subsequent events. The first type consists of events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements ("recognized subsequent events"). No significant recognized subsequent events

F-52

STAG Industrial, Inc. and STAG Predecessor Group

Notes to Consolidated and Combined Financial Statements (Continued)

17. Subsequent Events (Continued)

were noted. The second type consists of events that provide evidence about conditions that did not exist at the date of the balance sheet but arose subsequent to that date ("non-recognized subsequent events").

        The following non-recognized subsequent events are noted:

        On January 1, 2014, Virgis W. Colbert's appointment to the board of directors became effective.

        On January 2, 2014, the Company granted a total of 203,691 LTIP units to certain senior executive officers, 20,733 LTIP units to non-employee, independent directors, and 103,149 restricted shares of common stock to certain employees of the Company pursuant to the 2011 Plan.

        On February 7, 2014, Gregory W. Sullivan, the Company's Chief Financial Officer, notified the Company that he was not renewing his employment contract at it expiration on April 20, 2014 and that he resigned from the Company effective April 21, 2014. The Company intends to engage Mr. Sullivan as a senior financial advisor for one year to ensure a smooth transition of the chief financial officer.

F-53

STAG Industrial, Inc. and STAG Predecessor Group
Schedule 2—Valuation and Qualifying Accounts
December 31, 2013
(in thousands)

Allowance for Doubtful Receivables and
Accrued Rent Reserves

	STAG Industrial, Inc.
	Beginning of Period		Costs and Expenses			Amounts Written Off			Balance at End of Period
12/31/2013	$	—	$	19		$	—		$	19
12/31/2012	$	931	$	(105	)	$	(826	)	$	—

F-54

STAG Industrial, Inc.
Schedule 3—Real Estate and Accumulated Depreciation
December 31, 2013
(in thousands)

City/State	Encumbrances(1)			Building and Tenant Improvements (initial cost)		Land		Costs Capitalized Subsequent to Acquisition and Valuation Provision			Building Improvements and Equipment		Land		Total		Accumulated Depreciation			Acq Date		Depreciable Lives (Years)
Albion, IN		—			93		67		—			93		67		160		(17	)		2006		(2	)
Albion, IN		—			932		103		—			932		103		1,035		(169	)		2006		(2	)
Albion, IN		—			1,107		55		—			1,107		55		1,162		(201	)		2006		(2	)
Albion, IN		—			970		332		—			970		332		1,302		(176	)		2006		(2	)
Albion, IN		—			1,397		52		—			1,397		52		1,449		(253	)		2006		(2	)
Albion, IN		—			1,528		126		—			1,528		126		1,654		(277	)		2006		(2	)
Kendallville, IN		—			1,510		142		—			1,510		142		1,652		(273	)		2006		(2	)
Albion, IN		—			710		187		—			710		187		897		(129	)		2006		(2	)
Alexandria, MN		—			4,568		960		151			4,719		960		5,679		(398	)		2011		(2	)
Appleton, WI		—			3,916		495		191			4,107		495		4,602		(693	)		2007		(2	)
Arlington, TX		—			2,455		413		(45	)		2,410		413		2,823		(394	)		2007		(2	)
Arlington, TX		—			6,151		1,246		—			6,151		1,246		7,397		(289	)		2012		(2	)
Atlanta, GA		—			7,437		917		298			7,735		917		8,652		(318	)		2012		(2	)
Auburn Hills, MI		—			2,246		224		(4	)		2,242		224		2,466		(77	)		2012		(2	)
Avon, CT		—			2,750		336		—			2,750		336		3,086		(127	)		2012		(2	)
Belfast, ME		—			10,728		1,883		383			11,111		1,883		12,994		(921	)		2011		(2	)
Bellevue, OH		—			3,621		381		—			3,621		381		4,002		(181	)		2012		(2	)
Belvidere, IL		—			3,956		733		—			3,956		733		4,689		(78	)		2013		(2	)
Belvidere, IL		—			3,436		1,310		—			3,436		1,310		4,746		(91	)		2013		(2	)
Belvidere, IL		—			2,310		538		—			2,310		538		2,848		(51	)		2013		(2	)
Belvidere, IL		—			6,899		670		—			6,899		670		7,569		(116	)		2013		(2	)
Belvidere, IL		—			4,321		668		—			4,321		668		4,989		(91	)		2013		(2	)
Belvidere, IL		—			3,730		866		—			3,730		866		4,596		(73	)		2013		(2	)
Belvidere, IL		—			2,808		586		—			2,808		586		3,394		(67	)		2013		(2	)
Belvidere, IL		—			8,340		1,542		—			8,340		1,542		9,882		(192	)		2013		(2	)
Belvidere, IL		—			71		216		—			71		216		287		(12	)		2013		(2	)
Boardman, OH		—			3,482		282		593			4,075		282		4,357		(648	)		2007		(2	)
Boardman, OH		—			1,979		192		359			2,338		192		2,530		(329	)		2007		(2	)
Buena Vista, VA		—			2,500		534		—			2,500		534		3,034		(114	)		2012		(2	)
Buffalo, NY		—			2,924		146		—			2,924		146		3,070		(129	)		2012		(2	)
Canton, OH		—			5,078		586		128			5,206		586		5,792		(981	)		2007		(2	)
Catoosa, OK		—			3,937		—		—			3,937		—		3,937		(64	)		2013		(2	)
Charlotte, NC		(12,541	)		10,239		3,535		525			10,764		3,535		14,299		(994	)		2011		(2	)
Charlotte, NC		(15,830	)		12,818		2,734		161			12,979		2,734		15,713		(1,277	)		2011		(2	)
Cheektowaga, NY		—			2,757		216		395			3,152		216		3,368		(293	)		2011		(2	)
Chesterfield, MI		—			1,169		207		62			1,231		207		1,438		(301	)		2007		(2	)
Chesterfield, MI		—			798		150		15			813		150		963		(133	)		2007		(2	)
Chesterfield, MI		—			802		151		131			933		151		1,084		(154	)		2007		(2	)
Chesterfield, MI		—			5,304		942		972			6,276		942		7,218		(1,293	)		2007		(2	)
Chicopee, MA		—			5,867		504		—			5,867		504		6,371		(243	)		2012		(2	)
Chippewa Falls, WI		—			2,303		133		—			2,303		133		2,436		(142	)		2011		(2	)
Chippewa Falls, WI		—			544		44		—			544		44		588		(33	)		2011		(2	)
Cincinnati, OH		—			5,172		384		1,751			6,923		384		7,307		(1,142	)		2007		(2	)
Cleveland, TN		(2,964	)		3,161		554		84			3,245		554		3,799		(260	)		2011		(2	)
West Columbia, SC		—			6,988		715		102			7,090		715		7,805		(179	)		2013		(2	)
Conyers, GA		(3,928	)		4,142		969		80			4,222		969		5,191		(331	)		2011		(2	)
Dallas, GA		—			1,712		475		—			1,712		475		2,187		(78	)		2012		(2	)
LaGrange, GA		—			3,175		240		41			3,216		240		3,456		(354	)		2011		(2	)
Danville, KY		—			11,814		965		997			12,811		965		13,776		(1,122	)		2011		(2	)
Daytona Beach, FL		—			875		1,237		740			1,615		1,237		2,852		(315	)		2007		(2	)
Dayton, OH		—			3,650		391		624			4,274		391		4,665		(510	)		2007		(2	)
DeKalb, IL		—			4,568		489		—			4,568		489		5,057		(115	)		2013		(2	)
De Pere, WI		—			6,144		525		—			6,144		525		6,669		(265	)		2012		(2	)
Duncan, SC		—			11,352		1,002		44			11,396		1,002		12,398		(519	)		2012		(2	)
Duncan, SC		—			6,928		709		—			6,928		709		7,637		(359	)		2012		(2	)
Edgefield, SC		—			938		220		—			938		220		1,158		(52	)		2012		(2	)
Elkhart, IN		—			210		25		14			224		25		249		(45	)		2007		(2	)
Elkhart, IN		—			3,567		422		161			3,728		422		4,150		(628	)		2007		(2	)
El Paso, TX		—			3,096		—		373			3,469		—		3,469		(137	)		2012		(2	)
East Windsor, CT		(3,360	)		4,713		348		447			5,160		348		5,508		(403	)		2012		(2	)
Lexington, VA		—			445		59		—			445		59		504		(77	)		2007		(2	)
Fairfield, VA		—			2,274		295		177			2,451		295		2,746		(463	)		2007		(2	)
Farmington, NY		—			5,342		410		12			5,354		410		5,764		(908	)		2007		(2	)
Franklin, IN		—			12,042		2,479		—			12,042		2,479		14,521		(713	)		2012		(2	)

F-55

City/State	Encumbrances(1)			Building and Tenant Improvements (initial cost)		Land		Costs Capitalized Subsequent to Acquisition and Valuation Provision			Building Improvements and Equipment		Land		Total		Accumulated Depreciation			Acq Date		Depreciable Lives (Years)
Fort Worth, TX		(2,271	)		2,965		389		—			2,965		389		3,354		(257	)		2011		(2	)
Gahanna, OH		(3,649	)		4,191		1,265		1,158			5,349		1,265		6,614		(365	)		2011		(2	)
Georgetown, KY		(2,437	)		2,183		875		—			2,183		875		3,058		(199	)		2011		(2	)
Gloversville, NY		(813	)		1,317		117		(18	)		1,299		117		1,416		(50	)		2012		(2	)
Gloversville, NY		(1,314	)		2,613		151		—			2,613		151		2,764		(123	)		2012		(2	)
Gloversville, NY		(1,189	)		1,790		130		—			1,790		130		1,920		(97	)		2012		(2	)
Gloversville, NY		(939	)		1,514		154		—			1,514		154		1,668		(70	)		2012		(2	)
Golden, CO		—			6,164		742		—			6,164		742		6,906		(154	)		2013		(2	)
Goshen, IN		(6,366	)		6,509		1,442		201			6,710		1,442		8,152		(566	)		2011		(2	)
Greenwood, SC		(1,689	)		1,848		166		—			1,848		166		2,014		(75	)		2012		(2	)
Greenwood, SC		(1,439	)		1,232		169		—			1,232		169		1,401		(58	)		2012		(2	)
Gresham, OR		(9,241	)		8,740		1,730		365			9,105		1,730		10,835		(715	)		2011		(2	)
Gurnee, IL		—			4,902		1,337		—			4,902		1,337		6,239		(312	)		2012		(2	)
Hampstead, MD		—			34,969		780		—			34,969		780		35,749		(438	)		2013		(2	)
Harrisonburg, VA		—			11,179		1,455		—			11,179		1,455		12,634		(355	)		2012		(2	)
Harvard, IL		—			2,980		1,157		—			2,980		1,157		4,137		(17	)		2013		(2	)
St. Louis, MO		(6,432	)		5,815		1,382		—			5,815		1,382		7,197		(582	)		2011		(2	)
Holland, MI		—			5,235		489		428			5,663		489		6,152		(969	)		2007		(2	)
Holland, MI		(3,492	)		3,475		279		60			3,535		279		3,814		(166	)		2012		(2	)
Holland, MI		—			4,046		497		(218	)		3,828		497		4,325		(592	)		2007		(2	)
Houston, TX		—			7,790		2,255		—			7,790		2,255		10,045		(177	)		2013		(2	)
Huntersville, NC		—			3,270		1,061		35			3,305		1,061		4,366		(170	)		2012		(2	)
Idaho Falls, ID		—			2,735		356		—			2,735		356		3,091		(82	)		2013		(2	)
Independence, VA		(1,571	)		2,212		226		—			2,212		226		2,438		(153	)		2012		(2	)
Jackson, MS		—			926		218		—			926		218		1,144		(161	)		2007		(2	)
Jackson, MS		—			3,142		750		565			3,707		750		4,457		(612	)		2007		(2	)
Jackson, TN		—			2,374		230		142			2,516		230		2,746		(88	)		2012		(2	)
Janesville, WI		—			17,493		828		—			17,493		828		18,321		(59	)		2013		(2	)
Jefferson, NC		—			2,875		119		—			2,875		119		2,994		(482	)		2007		(2	)
Johnstown, NY		(813	)		1,304		178		—			1,304		178		1,482		(54	)		2012		(2	)
Johnstown, NY		(1,189	)		1,595		216		(3	)		1,592		216		1,808		(54	)		2012		(2	)
Johnstown, NY		(970	)		978		198		—			978		198		1,176		(54	)		2012		(2	)
Johnstown, NY		(1,815	)		1,467		140		—			1,467		140		1,607		(61	)		2012		(2	)
Kansas City, MO		—			5,581		703		—			5,581		703		6,284		(168	)		2012		(2	)
Kansas City, KS		(1,283	)		1,125		527		—			1,125		527		1,652		(62	)		2012		(2	)
Kentwood, MI		—			2,478		407		—			2,478		407		2,885		(55	)		2013		(2	)
Lafayette, IN		(1,345	)		2,280		295		(47	)		2,233		295		2,528		(78	)		2012		(2	)
Lafayette, IN		(2,284	)		3,554		410		—			3,554		410		3,964		(221	)		2012		(2	)
Lafayette, IN		(4,693	)		8,135		906		26			8,161		906		9,067		(427	)		2012		(2	)
Lansing, MI		(8,735	)		8,164		501		—			8,164		501		8,665		(637	)		2011		(2	)
Lansing, MI		—			4,077		580		—			4,077		580		4,657		(214	)		2012		(2	)
Lansing, MI		(6,257	)		7,162		429		—			7,162		429		7,591		(275	)		2012		(2	)
Lansing, MI		—			5,209		907		—			5,209		907		6,116		(17	)		2013		(2	)
Lewiston, ME		—			5,515		173		360			5,875		173		6,048		(1,057	)		2007		(2	)
Lexington, NC		—			3,968		232		135			4,103		232		4,335		(340	)		2011		(2	)
Londonderry, NH		—			6,683		730		—			6,683		730		7,413		(167	)		2013		(2	)
Louisville, KY		(3,508	)		3,875		386		520			4,395		386		4,781		(380	)		2011		(2	)
Louisville, KY		(5,596	)		6,182		616		632			6,814		616		7,430		(590	)		2011		(2	)
Madison, TN		(6,844	)		6,159		1,655		892			7,051		1,655		8,706		(737	)		2011		(2	)
Malden, MA		—			2,817		366		—			2,817		366		3,183		(475	)		2007		(2	)
Malden, MA		—			3,961		507		—			3,961		507		4,468		(668	)		2007		(2	)
Marion, IA		—			2,257		691		46			2,303		691		2,994		(68	)		2013		(2	)
Marion, IN		(3,191	)		3,010		243		—			3,010		243		3,253		(169	)		2012		(2	)
Marshall, MI		—			1,051		199		—			1,051		199		1,250		(36	)		2013		(2	)
Mascot, TN		—			3,452		385		—			3,452		385		3,837		(14	)		2013		(2	)
Salem, OH		—			6,849		858		—			6,849		858		7,707		(1,127	)		2006		(2	)
Mayville, WI		—			4,118		547		330			4,448		547		4,995		(742	)		2007		(2	)
Mebane, NC		—			4,570		481		—			4,570		481		5,051		(174	)		2012		(2	)
Mebane, NC		—			4,148		443		—			4,148		443		4,591		(169	)		2012		(2	)
Mebane, NC		—			4,999		358		—			4,999		358		5,357		(31	)		2013		(2	)
Milwaukee, WI		—			4,090		456		—			4,090		456		4,546		(663	)		2007		(2	)
Milwaukee, WI		—			5,283		1,048		368			5,651		1,048		6,699		(1,125	)		2007		(2	)
Mishawaka, IN		—			3,108		800		24			3,132		800		3,932		(92	)		2013		(2	)
Montgomery, IL		—			12,543		2,190		62			12,605		2,190		14,795		(424	)		2012		(2	)
Mooresville, NC		(7,085	)		7,411		701		216			7,627		701		8,328		(625	)		2011		(2	)
Mt. Prospect, IL		—			2,988		726		—			2,988		726		3,714		(77	)		2013		(2	)
Nashville, TN		—			3,601		547		—			3,601		547		4,148		(56	)		2013		(2	)
Newark, DE		—			1,478		197		137			1,615		197		1,812		(333	)		2007		(2	)
Newark, DE		—			2,479		330		36			2,515		330		2,845		(431	)		2007		(2	)
New Berlin, WI		—			6,500		1,068		98			6,598		1,068		7,666		(102	)		2013		(2	)
New Hope, MN		—			1,970		1,919		—			1,970		1,919		3,889		(34	)		2013		(2	)
Lopatcong, NJ		—			1,400		1,554		184			1,584		1,554		3,138		(228	)		2011		(2	)
Piscataway, NJ		—			5,655		640		164			5,819		640		6,459		(698	)		2011		(2	)
Newton, NC		—			4,367		732		86			4,453		732		5,185		(542	)		2011		(2	)

F-56

City/State	Encumbrances(1)			Building and Tenant Improvements (initial cost)		Land		Costs Capitalized Subsequent to Acquisition and Valuation Provision			Building Improvements and Equipment		Land		Total		Accumulated Depreciation			Acq Date		Depreciable Lives (Years)
North Jackson, OH		—			4,427		1,528		—			4,427		1,528		5,955		(25	)		2013		(2	)
North Jackson, OH		(7,775	)		6,439		486		—			6,439		486		6,925		(591	)		2011		(2	)
Norton, MA		(5,834	)		6,740		2,839		—			6,740		2,839		9,579		(532	)		2011		(2	)
Novi, MI		(3,066	)		3,879		252		—			3,879		252		4,131		(198	)		2012		(2	)
Ocala, FL		—			13,296		731		—			13,296		731		14,027		(295	)		2013		(2	)
O'Fallon, MO		(3,210	)		2,676		1,242		69			2,745		1,242		3,987		(239	)		2011		(2	)
O'Hara, PA		(17,583	)		18,875		1,435		574			19,449		1,435		20,884		(787	)		2012		(2	)
Orangeburg, SC		—			2,653		362		—			2,653		362		3,015		(100	)		2013		(2	)
Orlando, FL		—			4,839		1,339		—			4,839		1,339		6,178		(45	)		2013		(2	)
Orlando, FL		—			1,996		721		—			1,996		721		2,717		(101	)		2012		(2	)
Parsons, KS		(1,189	)		1,053		108		—			1,053		108		1,161		(50	)		2012		(2	)
Pensacola, FL		—			4,705		282		68			4,773		282		5,055		(807	)		2007		(2	)
Pensacola, FL		—			206		42		83			289		42		331		(51	)		2007		(2	)
Phenix City, AL		(1,752	)		1,493		276		—			1,493		276		1,769		(85	)		2012		(2	)
Pineville, NC		—			1,380		392		—			1,380		392		1,772		(79	)		2012		(2	)
Warrendale, PA		—			6,437		778		430			6,867		778		7,645		(536	)		2011		(2	)
Pocatello, ID		—			3,472		399		135			3,607		399		4,006		(785	)		2007		(2	)
Portage, IN		—			5,416		—		—			5,416		—		5,416		(180	)		2012		(2	)
Portland, TN		—			8,353		1,662		—			8,353		1,662		10,015		(526	)		2012		(2	)
Portland, ME		(3,120	)		3,727		891		—			3,727		891		4,618		(192	)		2012		(2	)
Rapid City, SD		—			11,957		2,306		524			12,481		2,306		14,787		(2,724	)		2007		(2	)
Muhlenberg TWP, PA		—			14,064		843		13			14,077		843		14,920		(706	)		2012		(2	)
Rogers, MN		(12,050	)		11,787		1,671		238			12,025		1,671		13,696		(1,429	)		2011		(2	)
Rogers, AR		—			8,280		1,072		99			8,379		1,072		9,451		(569	)		2011		(2	)
Round Rock, TX		—			3,399		394		(54	)		3,345		394		3,739		(551	)		2007		(2	)
Rural Hall, NC		—			5,664		439		137			5,801		439		6,240		(677	)		2011		(2	)
Salem, OR		(3,340	)		3,150		599		161			3,311		599		3,910		(312	)		2011		(2	)
Salem, OR		(1,501	)		1,471		266		119			1,590		266		1,856		(209	)		2011		(2	)
Sauk Village, IL		—			5,516		877		—			5,516		877		6,393		(21	)		2013		(2	)
Sergeant Bluff, IA		—			11,675		736		36			11,711		736		12,447		(2,886	)		2007		(2	)
Seville, OH		—			6,662		1,170		229			6,891		1,170		8,061		(538	)		2011		(2	)
Shannon, GA		—			12,969		393		—			12,969		393		13,362		(61	)		2013		(2	)
South Holland, IL		—			3,900		714		—			3,900		714		4,614		(18	)		2013		(2	)
Simpsonville, SC		—			3,003		957		30			3,033		957		3,990		(158	)		2012		(2	)
Simpsonville, SC		—			3,418		470		—			3,418		470		3,888		(161	)		2012		(2	)
Smithfield, NC		—			4,671		613		—			4,671		613		5,284		(295	)		2011		(2	)
Smyrna, GA		—			3,286		264		—			3,286		264		3,550		(129	)		2012		(2	)
South Bend, IN		—			4,834		411		—			4,834		411		5,245		(253	)		2012		(2	)
Southfield, MI		—			4,196		562		—			4,196		562		4,758		(103	)		2013		(2	)
Southfield, MI		—			—		354		—			—		354		354		—			2013		(2	)
Sparks, MD		—			3,577		790		(146	)		3,431		790		4,221		(536	)		2007		(2	)
Spartanburg, SC		—			6,471		493		—			6,471		493		6,964		(591	)		2012		(2	)
Springfield, OH		—			6,432		574		—			6,432		574		7,006		(76	)		2013		(2	)
Statham, GA		—			6,242		588		—			6,242		588		6,830		(236	)		2012		(2	)
Sterling Heights, MI		(1,689	)		4,197		513		55			4,252		513		4,765		(153	)		2012		(2	)
Hazelwood, MO		—			5,436		1,959		455			5,891		1,959		7,850		(935	)		2006		(2	)
Streetsboro, OH		(6,694	)		5,481		2,161		214			5,695		2,161		7,856		(796	)		2011		(2	)
Sun Prairie, WI		—			6,176		2,360		(76	)		6,100		2,360		8,460		(431	)		2011		(2	)
Tavares, FL		—			6,339		722		—			6,339		722		7,061		(1,386	)		2006		(2	)
Toledo, OH		—			6,831		213		—			6,831		213		7,044		(259	)		2012		(2	)
Twinsburg, OH		—			6,497		590		—			6,497		590		7,087		(1,014	)		2007		(2	)
Vonore, TN		(9,392	)		8,243		2,355		85			8,328		2,355		10,683		(916	)		2011		(2	)
Waco, TX		—			1,448		—		30			1,478		—		1,478		(107	)		2011		(2	)
Walker, MI		(4,434	)		4,872		855		118			4,990		855		5,845		(452	)		2011		(2	)
Ware Shoals, SC		(282	)		197		133		—			197		133		330		(10	)		2012		(2	)
Wichita, KS		(1,689	)		1,835		88		—			1,835		88		1,923		(82	)		2012		(2	)
Wichita, KS		(1,846	)		1,931		107		—			1,931		107		2,038		(135	)		2012		(2	)
Wichita, KS		(939	)		904		140		—			904		140		1,044		(42	)		2012		(2	)
Wichita, KS		(845	)		869		76		—			869		76		945		(59	)		2012		(2	)
Williamsport, PA		—			9,059		688		—			9,059		688		9,747		(209	)		2013		(2	)
Woodstock, IL		—			3,796		496		—			3,796		496		4,292		(138	)		2012		(2	)
Bardstown, KY		—			2,399		381		—			2,399		381		2,780		(424	)		2007		(2	)
Total		(225,303	)(1)		924,075		134,399		20,572			944,647		134,399		1,079,046		(71,653	)

(1)

Balance excludes the unamortized balance of historical fair value adjustments of $288.

(2)

Depreciation expense is computed using the straight-line method based on the following useful lives:

Buildings	40 years
Building and land improvements	5 - 20 years
Tenant improvements	Shorter of useful life or terms of related lease

        As of December 31, 2013, the aggregate cost for federal income tax purposes of investments in real estate was approximately $1.4 billion.

F-57

STAG Industrial, Inc. and STAG Predecessor Group

Real Estate and Accumulated Depreciation

December 31, 2013

(in thousands)

        A summary of activity for real estate and accumulated depreciation is as follows:

	STAG Industrial, Inc.									STAG Predecessor Group
	Year ended December 31, 2013			Year ended December 31, 2012			Period from April 20, 2011 to December 31, 2011			Period from January 1, 2011 to April 19, 2011
Real Estate:
Balance at beginning of period	$	816,227		$	502,258		$	210,225		$	210,186
Additions during period
Other acquisitions		266,389			322,719			292,426			—
Improvements, etc.		6,757			3,541			4,513			39
Other additions		—			—			—			—
Deductions during period
Cost of real estate sold		(9,073	)		(8,309	)		(4,544	)		—
Write-off of tenant improvements		(1,254	)		(576	)		(362	)		—
Asset Impairments		—			(3,406	)		—			—
Balance at the end of the period	$	1,079,046		$	816,227		$	502,258		$	210,225
Accumulated Depreciation:
Balance at beginning of period	$	46,175		$	30,004		$	20,959		$	19,261
Additions during period
Depreciation and amortization expense		27,492			18,174			9,618			1,698
Other additions		—			—			—			—
Deductions during period
Disposals		(2,014	)		(1,885	)		(573	)		—
Other reductions		—			(118	)		—			—
Balance at the end of the period	$	71,653		$	46,175		$	30,004		$	20,959

F-58

EXHIBIT INDEX

Exhibit Number		Description of Document
	3.1	Articles of Amendment and Restatement of STAG Industrial, Inc. (including all articles of amendment and articles supplementary)(13)
	3.2	Amended and Restated Bylaws of STAG Industrial, Inc.(4)
	4.1	Form of Common Stock Certificate of STAG Industrial, Inc.(1)
	4.2	Form of Certificate for the 9.0% Series A Cumulative Redeemable Preferred Stock of STAG Industrial, Inc.(9)
	4.3	Form of Certificate for the 6.625% Series B Cumulative Redeemable Preferred Stock of STAG Industrial, Inc.(14)
	10.1	Amended and Restated Agreement of Limited Partnership of STAG Industrial Operating Partnership, L.P.(5)
	10.2	First Amendment to the Amended and Restated Agreement of Limited Partnership of STAG Industrial Operating Partnership, L.P.(8)
	10.3	Second Amendment to the Amended and Restated Agreement of Limited Partnership of STAG Industrial Operating Partnership, L.P.(15)
	10.4	2011 Equity Incentive Plan(3)*
	10.5	Amendment to the 2011 Equity Incentive Plan(16)*
	10.6	2011 Outperformance Program(7)*
	10.7	Form of LTIP Unit Agreement(3)*
	10.8	Employment Agreement with Benjamin S. Butcher, dated April 20, 2011(5)*
	10.9	Employment Agreement with Gregory W. Sullivan, dated April 20, 2011(5)*
	10.10	Employment Agreement with Stephen C. Mecke, dated April 20, 2011(5)*
	10.11	Employment Agreement with Kathryn Arnone, dated April 20, 2011(5)*
	10.12	Employment Agreement with David G. King, dated April 20, 2011(5)*
	10.13	Form of Indemnification Agreement between STAG Industrial, Inc. and its directors and officers(2)*
	10.14	Registration Rights Agreement, dated April 20, 2011, by and among STAG Industrial, Inc., STAG Industrial Operating Partnership, L.P. and the persons named therein(5)
	10.15	Voting Agreement Termination Agreement, by and among STAG Industrial, Inc., STAG Industrial Operating Partnership, L.P. and the persons named therein(17)
	10.16	Master Loan Agreement, dated as of July 9, 2010, by and among STAG GI Investments Holdings, LLC and Connecticut General Life Insurance Company(1)
	10.17	Master Loan Agreement, dated as of October 12, 2010, by and among STAG GI Investments Holdings, LLC and Connecticut General Life Insurance Company(6)
	10.18	Master Loan Agreement, dated as of July 8, 2011, by and among STAG GI Investments Holdings, LLC and Connecticut General Life Insurance Company(6)
	10.19	Services Agreement between STAG Industrial Management, LLC and STAG Manager II, LLC, as amended

Exhibit Number		Description of Document
	10.20	Services Agreement between STAG Industrial Management, LLC and STAG Manager III, LLC(5)
	10.21	Credit Agreement, dated as of September 10, 2012, by and among STAG Industrial Operating Partnership, L.P., STAG Industrial, Inc., Bank of America, N.A. and the other lenders party thereto(10)
	10.22	First Amendment to Credit Agreement, dated as of February 13, 2013, by and among STAG Industrial Operating Partnership, L.P., STAG Industrial, Inc., Bank of America, N.A. and the other lenders party thereto(18)
	10.23	Second Amendment to Credit Agreement, dated as of October 7, 2013, by and among STAG Industrial Operating Partnership, L.P., STAG Industrial, Inc., Bank of America, N.A. and the other lenders party thereto(19)
	10.24	Real Estate Purchase and Sale Agreement, dated as of August 9, 2012, among STAG Industrial Holdings, LLC and the sellers identified therein, as amended(10)
	10.25	Loan Agreement, dated as of November 8, 2012, by and among Borrowers (as defined therein) and Wells Fargo Bank, National Association, as Lender(11)
	10.26	Term Loan Agreement, dated as of February 14, 2013, by and among STAG Industrial Operating Partnership, L.P., STAG Industrial, Inc., Wells Fargo Securities, LLC and the other lenders party thereto(12)
	12.1	Computation of ratios of earnings to fixed charges and preferred stock dividends
	21.1	Subsidiaries of STAG Industrial, Inc.
	23.1	Consent of PricewaterhouseCoopers LLP
	24.1	Power of Attorney (included on signature page)
	31.1	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
	31.2	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
	32.1	Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
	101	The following materials from STAG Industrial, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2013 formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated and Combined Statements of Operations, (iii) the Consolidated and Combined Statements of Comprehensive Income (Loss), (vi) the Consolidated and Combined Statements of Equity, (v) the Consolidated and Combined Statements of Cash Flows, and (vi) related notes to these consolidated and combined financial statements.

*

Represents management contract or compensatory plan or arrangement.

(1)

Incorporated by reference to STAG Industrial, Inc.'s Registration Statement on Form S-11/A (File No. 333-168368) filed with the Securities and Exchange Commission on September 24, 2010.

(2)

Incorporated by reference to STAG Industrial, Inc.'s Registration Statement on Form S-11/A (File No. 333-168368) filed with the Securities and Exchange Commission on February 16, 2011.

(3)

Incorporated by reference to STAG Industrial, Inc.'s Registration Statement on Form S-11/A (File No. 333-168368) filed with the Securities and Exchange Commission on April 5, 2011.

(4)

Incorporated by reference to STAG Industrial, Inc.'s Registration Statement on Form S-11/A (File No. 333-168368) filed with the Securities and Exchange Commission on April 8, 2011.

(5)

Incorporated by reference to STAG Industrial, Inc.'s Current Report on Form 8-K filed with the Securities and Exchange Commission on April 21, 2011.

(6)

Incorporated by reference to STAG Industrial, Inc.'s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 15, 2011.

(7)

Incorporated by reference to STAG Industrial, Inc.'s Current Report on Form 8-K filed with the Securities and Exchange Commission on September 23, 2011.

(8)

Incorporated by reference to STAG Industrial, Inc.'s Current Report on Form 8-K filed with the Securities and Exchange Commission on November 2, 2011.

(9)

Incorporated by reference to STAG Industrial, Inc.'s Registration Statement on Form S-11/A (File No. 333-177131) filed with the Securities and Exchange Commission on October 26, 2011.

(10)

Incorporated by reference to STAG Industrial, Inc.'s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 8, 2012.

(11)

Incorporated by reference to STAG Industrial, Inc.'s Current Report on Form 8-K filed with the Securities and Exchange Commission on November 13, 2012.

(12)

Incorporated by reference to STAG Industrial, Inc.'s Current Report on Form 8-K filed with the Securities and Exchange Commission on February 20, 2013.

(13)

Incorporated by reference to STAG Industrial, Inc.'s Quarterly Report on Form 10-Q filed with Securities and Exchange Commission on May 8, 2013.

(14)

Incorporated by reference to STAG Industrial, Inc.'s Registration Statement on Form 8-A filed with Securities and Exchange Commission on April 11, 2013.

(15)

Incorporated by reference to STAG Industrial, Inc.'s Current Report on Form 8-K filed with Securities and Exchange Commission on April 16, 2013.

(16)

Incorporated by reference to STAG Industrial, Inc.'s Current Report on Form 8-K filed with Securities and Exchange Commission on May 6, 2013.

(17)

Incorporated by reference to STAG Industrial, Inc.'s Quarterly Report on Form 10-Q filed with Securities and Exchange Commission on November 6, 2013.

(18)

Incorporated by reference to STAG Industrial, Inc.'s Annual Report on Form 10-K filed with Securities and Exchange Commission on March 6, 2013.

(19)

Incorporated by reference to STAG Industrial, Inc.'s Current Report on Form 8-K filed with Securities and Exchange Commission on October 10, 2013.

EX-10.19

Exhibit 10.19

SERVICES AGREEMENT

THIS SERVICES AGREEMENT (this “Agreement”) is made and entered into as of the 20th day of April, 2011, by and between STAG MANAGER II, LLC, a Delaware limited liability company having a principal place of business at 93 High Street, Boston, MA 02110 (herein called “Manager”), and STAG INDUSTRIAL MANAGEMENT, LLC, a Delaware limited liability company having a principal place of business at 99 High Street, Boston, MA 02110 (herein called “STAG”).

W I T N E S S E T H

WHEREAS, the Manager serves as manager of STAG Investments II, LLC, a Delaware limited liability company (the “Fund”), which Fund was formed in accordance with the terms of a certain Limited Liability Company Agreement dated as of May 20, 2005 (the “Operating Agreement”);

WHEREAS, the Fund owns those certain industrial properties more particularly described in Exhibit A attached hereto and made a part hereof (individually, a “Property” and collectively, the “Properties”);

WHEREAS, the purpose of the Manager is to provide, among other things, asset and property management, marketing and leasing, contracting and subcontracting, and other similar real estate services for the Fund and, in accordance with the terms of the Operating Agreement, the Manager may enter into contracts for the provision of these real estate services;

WHEREAS, STAG’s business is and its employees focus on, among other things, providing asset and property management services, including contracting and subcontracting as necessary, managing tenant matters, supervising real property assets and providing bookkeeping and accounting services in connection with such properties;

WHEREAS, Manager has requested that STAG assist Manager in implementing the Manager’s purpose by performing the Asset Management Services (as hereinafter defined) on behalf of Manager and STAG has agreed to provide such services, in accordance with the terms hereof;

NOW, THEREFORE, in consideration of the foregoing recitals and mutual obligations of the parties contained herein, the parties agree as follows:

1.   Appointment of STAG.  Manager hereby designates and appoints STAG to provide and perform the Asset Management Services for each Property that the Fund and/or the Manager may establish from time to time.  STAG hereby accepts such designation and appointment, which designation and acceptance are subject to the terms and conditions contained in this Agreement.

2.  Term.  The term of this Agreement shall be for a term of not more than five (5) years, commencing on the date hereof and expiring on April 20, 2016; provided, however, this Agreement shall terminate automatically if the Fund sells all of its Properties and liquidates its

1

assets prior to the expiration of the term.  Further, the services provided hereunder shall terminate automatically with respect to any one or more Properties that may be sold by the Fund prior to the expiration or sooner termination of this Agreement.  In any event, either Manager or STAG may terminate this Agreement at any time with thirty (30) days prior written notice without cause and with immediately upon written notice with cause.

3.  Responsibilities and Duties of STAG.  STAG agrees to: (a) manage the asset, including, without limitation, preparing budgets, collecting rents, tracking overdue payments, ensuring the payment and/or performance of any landlord obligations under the leases for the Properties; (b) draft and negotiate lease extensions, modifications or amendments, as necessary or appropriate; (c) market vacant properties and draft and negotiate new leases for the same; (d) provide general oversight of any risk management issues related to the Property; (e) conduct inspections of the physical condition of the Property and make any necessary improvements or repairs required under the leases; (f) provide any and all bookkeeping and accounting services necessary to administer the leases and to address any and all requirements under any loans secured by the Properties; and (g) perform each of these services in a manner consistent with STAG’s past practices (collectively, the “Asset Management Services”).  With respect to the bookkeeping and accounting services under this section, STAG will report accounting data on an entirely separate set of books from its own books, and will provide summaries of all purchases, revenues and other accounting data.  STAG will provide all accounting functions including, but not limited to, the preparation of such reports as the Fund’s lender may reasonably request, using such method of accounting as currently used by STAG.

4.  Compensation Payable to STAG by Manager.  In consideration for STAG’s provision of the Asset Management Services, Manager will pay STAG, quarterly in arrears, an Asset Management Services Fee equal the amount payable to Manager under Section 4.03(b) of the Operating Agreement (“Asset Management Services Fee”) but in no event shall such Asset Management Services Fee exceed the amount paid the Manager under Section 4.03(b) of the Operating Agreement.

5.  Assignment.  Except with respect to assignments to affiliates, which are expressly permitted upon written notice, neither party shall have the right to assign this Agreement without the prior written consent of the other party, which consent shall not be unreasonably withheld.

6.  No Joint Venture/Independent Contractor.  Nothing herein contained shall be deemed or construed by the parties hereto, or by any third party, as creating the relationship of principal and agent or of partnership or of joint venture between the parties hereto.  In the performance of its obligations hereunder, each party shall be an independent contractor with regard to the other.

7.  Notices. Any notice or document required or permitted to be delivered hereunder shall be deemed to be delivered at 10:00 am. on the third business day after deposit in the United States mail, postage prepaid, registered or certified mail, return receipt requested, addressed to the parties hereto at the respective addresses set forth in the preamble of this Agreement or at such other addresses as they may have theretofore specified written notice delivered in accordance with this paragraph.

8. Terms Binding.  The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.

2

9.  Counterparts.  This Agreement may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.

[space intentionally left blank — signature page follows]

3

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written.

STAG MANAGER II, LLC
By:	/s/ Stephen C. Mecke
	Name:  Stephen C. Mecke
	Title:  Authorized Officer
STAG INDUSTRIAL MANAGEMENT, LLC
By:	/s/ Stephen C. Mecke
	Name:  Stephen C. Mecke
	Title:  Executive Vice President

4

FIRST AMENDMENT TO SERVICES AGREEMENT

THIS FIRST AMENDMENT TO SERVICES AGREEMENT (this “Amendment”) is made and entered into as of the 10th day of June, 2013, by and between STAG MANAGER II, LLC, a Massachusetts limited liability company having a principal place of business at 99 High Street, 28th Floor, Boston, MA 02110 (herein called “Manager”), and STAG INDUSTRIAL MANAGEMENT, LLC, a Delaware limited liability company having a principal place of business at 99 High Street, 28th Floor, Boston, MA 02110 (herein called “STAG”).

R E C I T A L S

WHEREAS, Manager and STAG entered into that certain Services Agreement dated as of the 20th day of April, 2011 (the “Agreement”) pursuant to which STAG agreed to perform certain Asset Management Services on behalf of the Manager, which otherwise would be obliged to perform such Asset Management Services for STAG Investments II, LLC, a Delaware limited liability company (the “Fund”);

WHEREAS, the Fund owns certain industrial properties (individually, a “Property” and collectively, the “Properties”) that Fund wishes to liquidate in an orderly fashion, a time consuming albeit vital task to achieve the Fund’s best interests;

WHEREAS, Manager deems it advisable that the liquidation of the Fund’s Properties be undertaken by an independent consultant (the “Consultant”) whose sole responsibility will be the disposition of the Properties;

WHEREAS, the parties hereto wish to amend the Agreement to accommodate the engagement of the Consultant and the orderly disposition of the Properties; and

WHEREAS, any capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the Agreement.

A G R E E M E N T S

NOW, THEREFORE, in consideration of the foregoing recitals and mutual obligations of the parties contained herein, the parties agree as follows:

1.Disposition Services.  Manager and STAG agree to amend the definition of Asset Management Services to exclude the following “Disposition Services” hereinafter enumerated, to the extent and for the period of time that Manager engages a Consultant to perform the Disposition Services: (i) review and ensure the integrity of the pricing models for the Properties; (ii) assemble portfolio or single sale Properties for consideration by brokers; (iii) coordinate and work with brokers to establish expected value of Properties in light of individual market conditions; (iv) select brokers and negotiate listing agreements; (v) approve marketing materials and monitor marketing and sales process; (vi) respond to credible offers from purchasers and negotiate sale terms with prospective purchasers; (vii) solicit lender approvals as needed; (viii) coordinate due diligence materials delivery and respond to diligence issues; (ix) manage retrades or sale conditions; and (x) manage closing process.

2.Asset Management Services Fee.  Manager and STAG agree to amend the definition of Asset Management Services Fee to exclude the fees paid to the Consultant for the Disposition Services, to the extent and for the period of time that Manager engages a Consultant to perform the Disposition Services

3.Ratification.  Manager and STAG hereby ratify and confirm the terms and conditions of the Agreement, as amended by this Amendment.

4.Terms Binding.  The terms and conditions of this Amendment shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.

5.Counterparts.  This Agreement may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.

[space intentionally left blank — signature page follows]

2

IN WITNESS WHEREOF, the parties have executed this Amendment as of the day and year first above written.

STAG MANAGER II, LLC
By:	/s/ Benjamin S. Butcher
	Name: Benjamin S. Butcher
	Title: Executive Manager
STAG INDUSTRIAL MANAGEMENT, LLC
By:	/s/ Stephen C. Mecke
	Name: Stephen C. Mecke
	Title: Vice President

3

EX-12.1

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Exhibits 12.1

Statement of Computation of Ratios of Earnings to Fixed Charges and
Preferred Stock Dividends
(dollars in thousands)

	STAG Industrial, Inc.									Predecessor
	Year Ended December 31, 2013			Year Ended December 31, 2012			Period April 20, 2011 to December 31, 2011			Period January 1, 2011 to April 19, 2011			Year Ended December 31, 2010			Year Ended December 31, 2009
Fixed Charges
Interest expense	$	20,319		$	16,269		$	12,289		$	4,136		$	14,116		$	14,328
Interest within rental expense		156			125			71			—			—			—
Fixed charges	$	20,475		$	16,394		$	12,360		$	4,136		$	14,116		$	14,328
Earnings
Net income (loss) from continuing operations	$	106		$	(7,817	)	$	(10,510	)	$	(251	)	$	(3,091	)	$	(5,044	)
Fixed Charges		20,475			16,394			12,360			4,136			14,116			14,328
Earnings	$	20,581		$	8,577		$	1,850		$	3,885		$	11,025		$	9,284
Add: Depreciation and amortization		67,556			42,427			21,325			2,345			8,931			9,640
Less: Straight-line rent adjustments, net		(3,140	)		(2,710	)		(1,189	)		6			(481	)		(750	)
Add: Intangible amortization in rental income, net		5,798			4,718			2,774			(3	)		(175	)		2
Add: Loss on impairment		—			622			—			—			—			—
Add: Non-cash compensation expense		2,970			1,936			693			—			—			—
Add: (Gain) loss on interest rate swaps		—			(215	)		(2,179	)		(762	)		282			1,720
Adjusted Earnings	$	93,765		$	55,355		$	23,274		$	5,471		$	19,582		$	19,896
Preferred Stock Dividends
Preferred Stock Dividends	$	9,495		$	6,210		$	1,018			—			—			—
Ratio of earnings to fixed charges		1.01x			0.52x			0.15x			0.94x			0.78x			0.65x
Inadequate amount		—		$	(7,817	)	$	(10,510	)	$	(251	)	$	(3,091	)	$	(5,044	)
Ratio of earnings to combined fixed charges and preferred stock dividends		0.69x			0.38x			0.14x			0.94x			0.78x			0.65x
Inadequate amount	$	(9,389	)	$	(14,027	)	$	(11,528	)	$	(251	)	$	(3,091	)	$	(5,044	)
Ratio of Adjusted Earnings to Fixed Charges		4.58x			3.38x			1.88x			1.32x			1.39x			1.39x
Ratio of Adjusted Earnings to Combined Fixed Charges and Preferred Stock Dividends		3.13x			2.45x			1.74x			1.32x			1.39x			1.39x

"Adjusted earnings" consist of earnings excluding depreciation and amortization, straight-line rent adjustments, intangible amortization in rental income, net, amortization of non-cash compensation expense, loss on impairments and gain (loss) on interest rate swaps. Earnings, fixed charges and preferred dividends are calculated in the same manner as they are for the ratios of earnings to fixed charges and earnings to combined fixed charges and preferred stock dividends as described above. We believe that the ratios of adjusted earnings to fixed charges and combined fixed charges and preferred stock dividends are useful supplemental information regarding our ability to cover our fixed charges and preferred stock dividends.

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Exhibits 12.1

Statement of Computation of Ratios of Earnings to Fixed Charges and Preferred Stock Dividends (dollars in thousands)

EX-21.1

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Exhibit 21.1

Subsidiaries of STAG Industrial, Inc., a Maryland corporation

Name:	Jurisdiction of Formation/Incorporation:
STAG Arlington 2, L.P.		Delaware
STAG Atlanta, LLC		Delaware
STAG Auburn Hills, LLC		Delaware
STAG Avon, LLC		Delaware
STAG Bellevue, LLC		Delaware
STAG Belvidere I, LLC		Delaware
STAG Belvidere II, LLC		Delaware
STAG Belvidere III, LLC		Delaware
STAG Belvidere IV, LLC		Delaware
STAG Belvidere IX, LLC		Delaware
STAG Belvidere V, LLC		Delaware
STAG Belvidere VI, LLC		Delaware
STAG Belvidere VII, LLC		Delaware
STAG Belvidere VIII, LLC		Delaware
STAG Buena Vista, LLC		Delaware
STAG Buffalo, LLC		Delaware
STAG Catoosa, LLC		Delaware
STAG Chicopee, LLC		Delaware
STAG Chippewa Falls, LLC		Delaware
STAG Columbia, LLC		Delaware
STAG Dallas, LLC		Delaware
STAG De Pere, LLC		Delaware
STAG DeKalb, LLC		Delaware
STAG Duncan, LLC		Delaware
STAG East Windsor, LLC		Delaware
STAG Edgefield, LLC		Delaware
STAG El Paso, LP		Delaware
STAG Fort Worth, LP		Delaware
STAG Franklin, LLC		Delaware
STAG Gahanna, LLC		Delaware
STAG Georgetown, LLC		Delaware
STAG GI Charlotte 2, LLC		Delaware
STAG GI Charlotte, LLC		Delaware
STAG GI Cleveland, LLC		Delaware
STAG GI Goshen, LLC		Delaware
STAG GI Investments Holdings, LLC		Delaware
STAG GI Madison, LLC		Delaware
STAG GI Mooresville, LLC		Delaware
STAG GI New Jersey, LLC		Delaware
STAG GI O'Fallon, LLC		Delaware
STAG GI Rogers, LLC		Delaware
STAG GI Salem, LLC		Delaware
STAG GI Streetsboro, LLC		Delaware
STAG GI Vonore, LLC		Delaware
STAG GI Walker, LLC		Delaware
STAG Gloversville 1, LLC		Delaware
STAG Gloversville 2, LLC		Delaware
STAG Gloversville 3, LLC		Delaware
STAG Gloversville 4, LLC		Delaware

Name:	Jurisdiction of Formation/Incorporation:
STAG Golden, LLC		Delaware
STAG Greenwood 1, LLC		Delaware
STAG Greenwood 2, LLC		Delaware
STAG Gresham, LLC		Delaware
STAG Gurnee, LLC		Delaware
STAG Hampstead, LLC		Delaware
STAG Harrisonburg, LLC		Delaware
STAG Harvard, LLC		Delaware
STAG Hazelwood, LLC		Delaware
STAG Holland 3, LLC		Delaware
STAG Houston 2, L.P.		Delaware
STAG Huntersville, LLC		Delaware
STAG Idaho Falls, LLC		Delaware
STAG III Albion, LLC		Delaware
STAG III Appleton, LLC		Delaware
STAG III Arlington, L.P.		Delaware
STAG III Boardman, LLC		Delaware
STAG III Canton, LLC		Delaware
STAG III Chesterfield, LLC		Delaware
STAG III Cincinnati, LLC		Delaware
STAG III Dayton, LLC		Delaware
STAG III Daytona Beach, LLC		Delaware
STAG III Elkhart, LLC		Delaware
STAG III Fairfield, LLC		Delaware
STAG III Farmington, LLC		Delaware
STAG III Holland 2, LLC		Delaware
STAG III Holland, LLC		Delaware
STAG III Jackson, LLC		Delaware
STAG III Jefferson, LLC		Delaware
STAG III Lewiston, LLC		Delaware
STAG III Malden, LLC		Delaware
STAG III Maryland Borrower, LLC		Delaware
STAG III Mason, LLC		Delaware
STAG III Mayville, LLC		Delaware
STAG III Milwaukee 2, LLC		Delaware
STAG III Milwaukee, LLC		Delaware
STAG III Newark, LLC		Delaware
STAG III Pensacola, LLC		Delaware
STAG III Pocatello, LLC		Delaware
STAG III Rapid City, LLC		Delaware
STAG III Round Rock, L.P.		Delaware
STAG III Sergeant Bluff, LLC		Delaware
STAG III Sparks, LLC		Maryland
STAG III St. Louis, LLC		Delaware
STAG III Tavares, LLC		Delaware
STAG III Twinsburg, LLC		Delaware
STAG III Youngstown, LLC		Delaware
STAG Independence, LLC		Delaware
STAG Industrial Holdings II, LLC		Delaware
STAG Industrial Holdings, LLC		Delaware
STAG Industrial Management, LLC		Delaware
STAG Industrial Operating Partnership, L.P.		Delaware

Name:	Jurisdiction of Formation/Incorporation:
STAG Industrial TRS, LLC		Delaware
STAG Industrial GP, LLC		Delaware
STAG Investments Holdings III, LLC		Delaware
STAG Investments Holdings IV, LLC		Delaware
STAG IV Alexandria, LLC		Delaware
STAG IV Belfast, LLC		Delaware
STAG IV Cheektowaga, LLC		Delaware
STAG IV Danville, LLC		Delaware
STAG IV Lexington, LLC		Delaware
STAG IV Pittsburgh 2, LLC		Delaware
STAG IV Rural Hall, LLC		Delaware
STAG IV Seville, LLC		Delaware
STAG IV Sun Prairie, LLC		Delaware
STAG IV Waco, LP		Delaware
STAG Jackson, LLC		Delaware
STAG Janesville, LLC		Delaware
STAG Johnstown 1, LLC		Delaware
STAG Johnstown 2, LLC		Delaware
STAG Johnstown 3, LLC		Delaware
STAG Johnstown 4, LLC		Delaware
STAG Kansas City 2, LLC		Delaware
STAG Kansas City, LLC		Delaware
STAG Kentwood, LLC		Delaware
STAG Lafayette 1, LLC		Delaware
STAG Lafayette 2, LLC		Delaware
STAG Lafayette 3, LLC		Delaware
STAG Lansing 2, LLC		Delaware
STAG Lansing 3, LLC		Delaware
STAG Lansing 4, LLC		Delaware
STAG Londonderry, LLC		Delaware
STAG Louisville, LLC		Delaware
STAG Marion 2, LLC		Delaware
STAG Marion, LLC		Delaware
STAG Marshall, LLC		Delaware
STAG Mascot, LLC		Delaware
STAG Mebane 3, LLC		Delaware
STAG Mebane 1, LLC		Delaware
STAG Mebane 2, LLC		Delaware
STAG Mishawaka, LLC		Delaware
STAG Montgomery, LLC		Delaware
STAG Mt. Prospect, LLC		Delaware
STAG Nashville, LLC		Delaware
STAG New Berlin, LLC		Delaware
STAG New Hope, LLC		Delaware
STAG North Jackson, LLC		Delaware
STAG North Jackson, LLC		Delaware
STAG Norton, LLC		Delaware
STAG Novi, LLC		Delaware
STAG O'Hara, LLC		Delaware
STAG Ocala, LLC		Delaware
STAG Orangeburg, LLC		Delaware
STAG Orlando 2, LLC		Delaware

Name:	Jurisdiction of Formation/Incorporation:
STAG Orlando, LLC		Delaware
STAG Parsons, LLC		Delaware
STAG Phenix City, LLC		Delaware
STAG Pineville, LLC		Delaware
STAG Portage, LLC		Delaware
STAG Portland 2, LLC		Delaware
STAG Portland, LLC		Delaware
STAG Reading, LLC		Delaware
STAG Rogers 2, LLC		Delaware
STAG Sauk Village, LLC		Delaware
STAG Shannon, LLC		Delaware
STAG Simpsonville, LLC		Delaware
STAG Smithfield, LLC		Delaware
STAG Smyrna, LLC		Delaware
STAG South Bend, LLC		Delaware
STAG South Holland, LLC		Delaware
STAG Southfield 2, LLC		Delaware
STAG Southfield, LLC		Delaware
STAG Spartanburg, LLC		Delaware
STAG Springfield, LLC		Delaware
STAG Statham, LLC		Delaware
STAG Sterling Heights, LLC		Delaware
STAG Toledo, LLC		Delaware
STAG TX GP 2, LLC		Delaware
STAG TX GP, LLC		Delaware
STAG Ware Shoals, LLC		Delaware
STAG Wichita 1, LLC		Delaware
STAG Wichita 2, LLC		Delaware
STAG Wichita 3, LLC		Delaware
STAG Wichita 4, LLC		Delaware
STAG Williamsport, LLC		Delaware
STAG Woodstock, LLC		Delaware
STAV IV Newton, LLC		Delaware
STIR Investments GP III, LLC		Delaware
STIR Investments GP IV, LLC		Delaware
STIR Investments GP, LLC		Delaware
STIR Lansing, LLC		Delaware

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Exhibit 21.1

Subsidiaries of STAG Industrial, Inc., a Maryland corporation

EX-23.1

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Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

        We hereby consent to the incorporation by reference in the Registration Statements on Forms S-3 (Nos. 333-181290, 333-181291, and 333-188465) and Form S-8 (No. 333-173599 and 333-188483) of STAG Industrial, Inc. of our report dated February 26, 2014, relating to the consolidated financial statements, financial statement schedules and the effectiveness of internal control over financial reporting of STAG Industrial, Inc., which appears in this Form 10-K. We also consent to the incorporation by reference of our report dated March 9, 2012, except for the effects of discontinued operations described in Note 3 to the combined financial statements as to which the date is February 26, 2014, relating to the combined financial statements and financial statement schedules of STAG Predecessor Group, which appears in this Form 10-K.

/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
February 26, 2014

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Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

EX-31.1

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Exhibit 31.1

Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Benjamin S. Butcher, certify that:

1.

I have reviewed this annual report on Form 10-K of STAG Industrial, Inc.;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.

The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 26, 2014 /s/ BENJAMIN S. BUTCHER
Benjamin S. Butcher
Chairman, Chief Executive Officer
and President

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Exhibit 31.1

Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

EX-31.2

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Exhibit 31.2

Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Gregory W. Sullivan, certify that:

1.

I have reviewed this annual report on Form 10-K of STAG Industrial, Inc.;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.

The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 26, 2014 /s/ GREGORY W. SULLIVAN
Gregory W. Sullivan
Chief Financial Officer, Executive Vice President
and Treasurer

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Exhibit 31.2

Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

EX-32.1

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Exhibit 32.1

Certification Pursuant To
18 U.S.C. Section 1350,
as Adopted Pursuant to
Section 906 of The Sarbanes-Oxley Act of 2002

        In connection with the Annual Report of STAG Industrial, Inc. on Form 10-K for the fiscal year ended December 31, 2013 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned officers of STAG Industrial, Inc., certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(2)

the Report, containing the financial statements, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and



(2)

the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of STAG Industrial, Inc.

Date: February 26, 2014	/s/ BENJAMIN S. BUTCHER Benjamin S. Butcher Chairman, Chief Executive Officer and President
	/s/ GREGORY W. SULLIVAN Gregory W. Sullivan Chief Financial Officer, Executive Vice President and Treasurer

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Exhibit 32.1

Certification Pursuant To 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of The Sarbanes-Oxley Act of 2002

XML

Organization and Description of Business (Details 2) (USD $)	0 Months Ended	9 Months Ended	12 Months Ended		0 Months Ended		0 Months Ended				0 Months Ended					12 Months Ended
	Apr. 19, 2011	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2013 building	Apr. 20, 2011 STAG Investments III, LLC (Fund III) building	Dec. 31, 2013 STAG Investments III, LLC (Fund III) building	Apr. 20, 2011 STAG Investments III, LLC (Fund III) Minimum	Apr. 20, 2011 STAG Investments III, LLC (Fund III) Maximum	Apr. 19, 2011 Secured corporate revolving credit facility	Apr. 20, 2011 Secured corporate revolving credit facility	Apr. 20, 2011 Predecessor and the Participants	Jan. 22, 2013 Common Shares	Aug. 15, 2012 Common Shares	May 29, 2012 Common Shares	Apr. 19, 2011 Common Shares	Dec. 31, 2013 Common Shares	May 13, 2011 Common Shares	Apr. 20, 2011 Common Shares
Formation transactions
Common stock issued (in shares)												6,284,152	9,200,000	8,337,500	13,750,000	8,956,844
Issue price (in dollars per share)												$ 18.30	$ 14.15	$ 12.88			$ 13.00	$ 13.00
Common units of Operating Partnership issued (in shares)											7,590,000
Aggregate value of common units of Operating Partnership issued											$ 98,700,000
Maximum borrowing capacity under the facility										100,000,000
Proceeds from borrowings under the credit facility		34,500,000	124,300,000						11,000,000
Repayment of certain outstanding indebtedness	164,700,000
Payment of direct costs associated with the obtaining and retiring of indebtedness and the termination of interest rate swaps	2,500,000
Payment of transfer taxes and other fees	$ 300,000
Number of buildings owned				209	3	0
Period after notification that the property has stabilized, for which the entity has the right to acquire the Option Properties								3 months
Occupancy percentage required to declare that Option Properties have stabilized (as a percent)							85.00%
Remaining lease duration for which a required occupancy percentage should be met in order to declare that the property has stabilized							2 years
Period from the date of formation transactions after which the right to acquire any of the Option Properties expires					5 years

XML

Noncontrolling Interest (Details 2) (USD $)	12 Months Ended	9 Months Ended	12 Months Ended		0 Months Ended				1 Months Ended		3 Months Ended	9 Months Ended	12 Months Ended		0 Months Ended
	Dec. 31, 2013 LTIP Units	Dec. 31, 2011 2011 Plan	Dec. 31, 2013 2011 Plan	Dec. 31, 2012 2011 Plan	Jan. 03, 2013 2011 Plan LTIP Units	Jan. 03, 2012 2011 Plan LTIP Units	Jun. 30, 2011 2011 Plan LTIP Units	Apr. 20, 2011 2011 Plan LTIP Units	Jan. 31, 2012 2011 Plan LTIP Units	Apr. 30, 2011 2011 Plan LTIP Units	Apr. 19, 2011 2011 Plan LTIP Units	Dec. 31, 2011 2011 Plan LTIP Units	Dec. 31, 2013 2011 Plan LTIP Units	Dec. 31, 2012 2011 Plan LTIP Units	Jan. 03, 2013 2011 Plan LTIP Units Executive officers	Jan. 03, 2012 2011 Plan LTIP Units Executive officers	Apr. 20, 2011 2011 Plan LTIP Units Executive officers	Jan. 03, 2013 2011 Plan LTIP Units Non-employee, independent directors	May 07, 2012 2011 Plan LTIP Units Non-employee, independent directors	Jan. 03, 2012 2011 Plan LTIP Units Non-employee, independent directors	Apr. 20, 2011 2011 Plan LTIP Units Non-employee, independent directors	Aug. 02, 2012 2011 Plan LTIP Units Christopher P. Marr
Share-based compensation
Units granted (in shares)												200,441	187,569	223,985	173,044	196,260	159,046	14,525		22,380	41,395	5,345
Vesting period (in years)							5 years
Fair value at the date of grant					$ 3,300,000	$ 2,500,000		$ 2,300,000				$ 300,000	$ 2,400,000	$ 1,300,000								$ 100,000
Volatility factor (as a percent)					45.00%				50.00%	55.00%
Risk-free interest rate (as a percent)					1.97%				3.40%	2.10%
Expected annual dividend yield (as a percent)					6.00%				6.50%	6.00%
Term					10 years			10 years
Units vested (in shares)												30,066	119,852	82,440
Units redeemed (in shares)	1,656
Shares forfeited													0						10,875
Amount of dividend paid																			8,000
Non-cash compensation expense recognized		700,000	3,000,000	1,900,000							0	300,000	1,600,000	900,000
Unrecognized compensation expense												$ 2,000,000	$ 5,200,000	$ 3,500,000

XML

Use of Derivative Financial Instruments (Details 2) (USD $) In Thousands, unless otherwise specified	Sep. 14, 2012	Dec. 31, 2013 Unsecured Term Loan Swaps Interest Rate Swaps Not Designated As Hedging Instruments	Dec. 31, 2012 Unsecured Term Loan Swaps Interest Rate Swaps Not Designated As Hedging Instruments
Fair value of the interest rate swaps outstanding
Fair Value		$ 3,924	$ (480)
Notional Amount	$ 100,000	$ 225,000	$ 100,000

XML

Future Minimum Rents (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Future Minimum Rents
2014	$ 134,391
2015	121,243
2016	106,356
2017	85,455
2018	66,355
Thereafter	$ 211,117

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Debt (Details) (USD $)	0 Months Ended	12 Months Ended										0 Months Ended										12 Months Ended		0 Months Ended			12 Months Ended		0 Months Ended		12 Months Ended		0 Months Ended								0 Months Ended	12 Months Ended			0 Months Ended												0 Months Ended	12 Months Ended	0 Months Ended				0 Months Ended		12 Months Ended				12 Months Ended	0 Months Ended					12 Months Ended				0 Months Ended
	Sep. 14, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013 Minimum	Dec. 31, 2012 Minimum	Dec. 31, 2013 Maximum	Dec. 31, 2012 Maximum	Dec. 31, 2013 Mortgage notes payable	Dec. 31, 2012 Mortgage notes payable	Dec. 31, 2013 Sun Life	Dec. 31, 2012 Sun Life	Oct. 07, 2013 Bank of America Unsecured Credit Facility and Unsecured Term Loan	Oct. 07, 2013 Bank of America Unsecured Credit Facility and Unsecured Term Loan Original Terms	Oct. 07, 2013 Bank of America Unsecured Credit Facility and Unsecured Term Loan Base Rate Original Terms	Oct. 07, 2013 Bank of America Unsecured Credit Facility and Unsecured Term Loan Eurodollar Rate Original Terms	Oct. 07, 2013 Bank of America Unsecured Credit Facility and Unsecured Term Loan Minimum Base Rate Original Terms	Oct. 07, 2013 Bank of America Unsecured Credit Facility and Unsecured Term Loan Minimum Eurodollar Rate Original Terms	Oct. 07, 2013 Bank of America Unsecured Credit Facility and Unsecured Term Loan Maximum Base Rate Original Terms	Oct. 07, 2013 Bank of America Unsecured Credit Facility and Unsecured Term Loan Maximum Eurodollar Rate Original Terms	Dec. 31, 2013 Webster Bank, maturity date Aug 4, 2016	Dec. 31, 2012 Webster Bank, maturity date Aug 4, 2016	Dec. 31, 2013 Bank of America Unsecured Credit Facility, due on September 10, 2016	Dec. 31, 2012 Bank of America Unsecured Credit Facility, due on September 10, 2016	Oct. 07, 2013 Bank of America Unsecured Credit Facility, due on September 10, 2016 Amended Terms	Oct. 07, 2013 Bank of America Unsecured Credit Facility, due on September 10, 2016 Base Rate Amended Terms	Oct. 07, 2013 Bank of America Unsecured Credit Facility, due on September 10, 2016 Eurodollar Rate Amended Terms	Dec. 31, 2013 Bank of America Unsecured Credit Facility, due on September 10, 2016 Minimum	Dec. 31, 2012 Bank of America Unsecured Credit Facility, due on September 10, 2016 Minimum	Oct. 07, 2013 Bank of America Unsecured Credit Facility, due on September 10, 2016 Minimum Base Rate Amended Terms	Oct. 07, 2013 Bank of America Unsecured Credit Facility, due on September 10, 2016 Minimum Eurodollar Rate Amended Terms	Dec. 31, 2013 Bank of America Unsecured Credit Facility, due on September 10, 2016 Maximum	Dec. 31, 2012 Bank of America Unsecured Credit Facility, due on September 10, 2016 Maximum	Oct. 07, 2013 Bank of America Unsecured Credit Facility, due on September 10, 2016 Maximum Base Rate Amended Terms	Oct. 07, 2013 Bank of America Unsecured Credit Facility, due on September 10, 2016 Maximum Eurodollar Rate Amended Terms	Dec. 31, 2013 Union Fidelity	Dec. 31, 2012 Union Fidelity	Dec. 31, 2013 Webster Bank, maturity date May 29, 2017	Dec. 31, 2012 Webster Bank, maturity date May 29, 2017	Dec. 31, 2013 Webster Bank, maturity date May 31, 2017	Dec. 31, 2012 Webster Bank, maturity date May 31, 2017	Sep. 14, 2012 Bank of America Unsecured Term Loan, due on September 10, 2017	Dec. 31, 2013 Bank of America Unsecured Term Loan, due on September 10, 2017	Dec. 31, 2012 Bank of America Unsecured Term Loan, due on September 10, 2017	Sep. 10, 2012 Bank of America Unsecured Term Loan, due on September 10, 2017	Oct. 07, 2013 Bank of America Unsecured Term Loan, due on September 10, 2017 Base Rate Amended Terms	Oct. 07, 2013 Bank of America Unsecured Term Loan, due on September 10, 2017 Eurodollar Rate Amended Terms	Oct. 07, 2013 Bank of America Unsecured Term Loan, due on September 10, 2017 Minimum Base Rate Amended Terms	Oct. 07, 2013 Bank of America Unsecured Term Loan, due on September 10, 2017 Minimum Eurodollar Rate Amended Terms	Oct. 07, 2013 Bank of America Unsecured Term Loan, due on September 10, 2017 Maximum Base Rate Amended Terms	Oct. 07, 2013 Bank of America Unsecured Term Loan, due on September 10, 2017 Maximum Eurodollar Rate Amended Terms	Dec. 31, 2013 CIGNA-1 Facility	Dec. 31, 2012 CIGNA-1 Facility	Dec. 31, 2013 CIGNA-2 Facility	Dec. 31, 2012 CIGNA-2 Facility	Dec. 31, 2013 CIGNA-3 Facility	Dec. 31, 2012 CIGNA-3 Facility	Feb. 14, 2013 Wells Fargo, Unsecured Term Loan, due on February 14, 2020	Dec. 31, 2013 Wells Fargo, Unsecured Term Loan, due on February 14, 2020	Feb. 14, 2013 Wells Fargo, Unsecured Term Loan, due on February 14, 2020 LIBOR	Dec. 31, 2013 Wells Fargo, CMBS Loan	Dec. 31, 2012 Wells Fargo, CMBS Loan	Nov. 08, 2012 Wells Fargo, CMBS Loan	Oct. 07, 2013 Unsecured Credit Facility	Sep. 10, 2012 Unsecured Credit Facility	Dec. 31, 2013 Unsecured Credit Facility Minimum	Dec. 31, 2013 Unsecured Credit Facility Maximum	Sep. 10, 2012 Swing line loans	Sep. 10, 2012 Letter of credit	Dec. 31, 2013 CIGNA-1, CIGNA-2, and CIGNA-3 facilities item	Sep. 10, 2012 Wells Fargo Master Loan-Fixed Amount	Aug. 15, 2012 Wells Fargo Master Loan-Fixed Amount	Sep. 10, 2012 Credit Facility	Oct. 07, 2013 Unsecured Term Loan	Sep. 10, 2012 Unsecured Term Loan	Dec. 31, 2013 Unsecured Term Loan Minimum	Dec. 31, 2012 Unsecured Term Loan Minimum	Dec. 31, 2013 Unsecured Term Loan Maximum	Dec. 31, 2012 Unsecured Term Loan Maximum	Jun. 27, 2012 Bank of America, N.A.
Debt instruments
Interest rate base		One-month LIBOR	One-month LIBOR											Base rate	one month-LIBOR							LIBOR			Base rate	one month-LIBOR																LIBOR			Base rate	one month-LIBOR												LIBOR	one-month LIBOR
Interest rate margin (as a percent)																0.65%	1.65%	1.25%	2.25%			1.45%					1.45%	1.45%	0.45%	1.45%	1.65%	1.65%	1.05%	2.05%								1.40%					0.40%	1.40%	1.00%	2.00%								2.15%	2.70%																1.40%	1.40%	1.65%	1.65%
Interest Rate (as a percent)										6.05%										4.22%															5.81%		3.66%		3.64%												6.50%		5.75%		5.88%					4.31%																			7.05%
One-month LIBOR rate (as a percent)		0.1677%	0.2087%
Principal outstanding		$ 556,091,000	$ 479,215,000					$ 225,591,000	$ 229,915,000	$ 3,817,000	$ 4,079,000									$ 5,834,000	$ 5,984,000	$ 80,500,000	$ 99,300,000												$ 6,551,000	$ 6,898,000	$ 3,121,000	$ 3,203,000	$ 3,360,000	$ 3,450,000		$ 150,000,000	$ 150,000,000								$ 58,874,000	$ 59,645,000	$ 59,990,000	$ 60,863,000	$ 16,879,000	$ 17,097,000		$ 100,000,000		$ 67,165,000	$ 68,696,000	$ 68,800,000
Repayment of principal outstanding																																																																						18,700,000									8,100,000
New or additional borrowings																																																									150,000,000
Unamortized fair market value premium		288,000						288,000		200,000	200,000																								100,000	200,000
Portion of unsecured term loan swapped from LIBOR for fixed rate	100,000,000																																									100,000,000																125,000,000
Unused commitment fees																						600,000	100,000																																		300,000															2,500,000
Unsecured Term Loan																																									150,000,000			150,000,000														150,000,000																150,000,000
Additional borrowing capacity																																																									250,000,000									300,000,000
Variable rate received under agreement																																									One-month LIBOR	One-month LIBOR
Consolidated leverage ratio																																																																		0.60
Secured leverage ratio																																																																		0.45
Unencumbered leverage ratio																																																																		0.60
Secured recourse debt ratio																																																																		7.50
Fixed charge ratio																																																																	1.50
Discount rate at which cash flows are discounted (as a percent)			11.40%	1.57%	1.86%	5.24%	4.64%
Fair value								228,996,000	242,175,000													80,500,000	99,300,000																			148,781,000	150,000,000															97,302,000
Remaining borrowing capacity																																										0									0		2,900,000		47,900,000			50,000,000
Maximum borrowing capacity																						119,300,000																																										200,000,000			10,000,000	10,000,000
Gain (loss) on early extinguishment of the loan			(929,000)																																																																												18,000
Service coverage ratio after to satisfaction of an appraisal condition																																																																		1.6
Pre-payment penalties																																																																						0		0							0
Loss on early extinguishment of credit facility																																																																						400,000		500,000
Unused commitment fee (as a percent)																																																									0.35%
Unused commitment fee when usage more than 50 % (as a percent)													0.25%											0.20%
Unused commitment fee when usage less than 50 % (as a percent)													0.35%											0.25%
Deferred financing fees, net		5,467,000	4,704,000																																																						1,400,000						300,000										200,000
Deferred financing fees amortization period																																																									7 years						3 years									5 years	4 years
Deferred financing fees expensed as a loss on extinguishment of debt												0
Deferred annual fees																																																									50,000
Deferred annual fees amortization period																																																									1 year
Prepayment of debt																																																																							105,000,000
Number of properties held as collateral that are cross-collateralized																																																																					21
Net book value of collateralized properties for debt arrangements		262,700,000	269,100,000
Aggregate future principal payments of mortgage notes payable, Unsecured credit facility
2014								4,447,000
2015								4,688,000
2016								93,777,000
2017								165,506,000
2018								113,377,000
Thereafter								174,008,000
Total aggregate principal payments								555,803,000
Unamortized fair market value premium		288,000						288,000		200,000	200,000																								100,000	200,000
Total carrying value of debt		$ 225,591,000	$ 229,915,000					$ 556,091,000

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Equity (Tables)

12 Months Ended

Dec. 31, 2013

Stockholders' Equity

Schedule of grants of common stock for the members' service

Service During Quarter Ended 2013	Grant Date	Shares		Fair Value
December 31	January 15, 2014		2,554	$	52,000
September 30	October 15, 2013		2,607		53,000
June 30	July 15, 2013		2,602		53,000
March 31	April 15, 2013		2,418		52,000
Total 2013			10,181	$	210,000

Service During Quarter Ended 2012	Grant Date	Shares		Fair Value
December 31	January 15, 2013		2,851	$	54,000
September 30	October 15, 2012		2,876		49,000
June 30	July 13, 2012		3,108		46,000
March 31	April 13, 2012		3,776		50,000
Total 2012			12,611	$	199,000

Series A Preferred Stock

Stockholders' Equity

Schedule of dividends that have been declared by board of directors

Amount Declared During Quarter Ended 2013	Declaration Date	Per Share		Date Paid
December 31	November 1, 2013	$	0.5625	December 31, 2013
September 30	August 2, 2013		0.5625	September 30, 2013
June 30	May 6, 2013		0.5625	July 1, 2013
March 31	March 1, 2013		0.5625	April 1, 2013
Total 2013		$	2.25

Amount Declared During Quarter Ended 2012	Declaration Date	Per Share		Date Paid
December 31	November 2, 2012	$	0.5625	December 31, 2012
September 30	August 2, 2012		0.5625	October 1, 2012
June 30	May 15, 2012		0.5625	July 2, 2012
March 31	March 6, 2012		0.5625	April 2, 2012
Total 2012		$	2.25

Series B Preferred Stock

Stockholders' Equity

Schedule of dividends that have been declared by board of directors

Amount Declared During Quarter Ended 2013	Declaration Date	Per Share		Date Paid
December 31	November 1, 2013	$	0.4140625	December 31, 2013
September 30	August 2, 2013		0.4140625	September 30, 2013
June 30 (prorated for April 16, 2013 to June 30, 2013)	May 6, 2013		0.3450500	July 1, 2013
Total 2013		$	1.1731750

Common Shares

Stockholders' Equity

Schedule of dividends that have been declared by board of directors

Amount Declared During 2013	Declaration Date	Per Share		Date Paid
Month ended December 31	September 24, 2013	$	0.10	January 15, 2014
Month ended November 30	September 24, 2013		0.10	December 16, 2013
Month ended October 31	September 24, 2013		0.10	November 15, 2013
Quarter ended September 30	August 2, 2013		0.30	October 15, 2013
Quarter ended June 30	May 6, 2013		0.30	July 15, 2013
Quarter ended March 31	March 1, 2013		0.30	April 15, 2013
Total 2013		$	1.20

Amount Declared During Quarter Ended 2012	Declaration Date	Per Share		Date Paid
December 31	November 2, 2012	$	0.27	January 15, 2013
September 30	August 2, 2012		0.27	October 15, 2012
June 30	May 15, 2012		0.27	July 13, 2012
March 31	March 6, 2012		0.26	April 13, 2012
Total 2012		$	1.07

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Earnings Per Share (Details 2) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended								9 Months Ended	12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Dec. 31, 2013	Dec. 31, 2012
Numerator
Net income (loss) from continuing operations	$ 1,126	$ 265	$ (738)	$ (547)	$ (2,973)	$ (1,371)	$ (2,028)	$ (1,445)	$ (10,510)	$ 106	$ (7,817)
Less: preferred stock dividends									1,018	9,495	6,210
Less: amount allocable to unvested restricted stockholders										262	122
Less: noncontrolling interest after preferred stock dividends allocable to continuing operations									(3,821)	(1,267)	(3,180)
Loss from continuing operations available to common stockholders									(7,707)	(8,384)	(10,969)
Income (Loss) attributable to discontinued operations									1,283	4,796	(2,382)
Less: noncontrolling interest allocable to discontinued operations									425	647	(540)
Income (Loss) from discontinued operations attributable to common stockholders									$ 858	$ 4,149	$ (1,842)
Denominator
Weighted average common shares outstanding - basic and diluted									15,630,910	42,364,125	25,046,664
Earnings per common share
Loss from continuing operations attributable to common stockholders (in dollars per share)									$ (0.49)	$ (0.20)	$ (0.44)
Income (Loss) from discontinued operations attributable to common stockholders (in dollars per share)									$ 0.05	$ 0.10	$ (0.07)
Loss per share - basic and diluted (in dollars per share)	$ 0.05	$ (0.05)	$ (0.06)	$ (0.04)	$ (0.10)	$ (0.18)	$ (0.11)	$ (0.12)	$ (0.44)	$ (0.10)	$ (0.51)

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Schedule 2-Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2013

Schedule 2-Valuation and Qualifying Accounts

Schedule 2-Valuation and Qualifying Accounts

STAG Industrial, Inc. and STAG Predecessor Group
Schedule 2—Valuation and Qualifying Accounts
December 31, 2013
(in thousands)

Allowance for Doubtful Receivables and
Accrued Rent Reserves

	STAG Industrial, Inc.
	Beginning of Period		Costs and Expenses			Amounts Written Off			Balance at End of Period
12/31/2013	$	—	$	19		$	—		$	19
12/31/2012	$	931	$	(105	)	$	(826	)	$	—

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Use of Derivative Financial Instruments (Details 4) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Assets (liabilities):
Interest rate Swaps Assets	$ 3,924
Interest rate Swaps Liabilities		(480)
Fair value on recurring basis | Total
Assets (liabilities):
Interest rate Swaps Assets	3,924
Interest rate Swaps Liabilities		(480)
Fair value on recurring basis | Significant Other Observable Inputs (Level 2)
Assets (liabilities):
Interest rate Swaps Assets	3,924
Interest rate Swaps Liabilities		$ (480)

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Summary of Significant Accounting Policies (Details 3) (USD $)	0 Months Ended	9 Months Ended	12 Months Ended		3 Months Ended	0 Months Ended
	Jul. 08, 2011 item	Dec. 31, 2011	Dec. 31, 2013 item	Dec. 31, 2012	Apr. 19, 2011 STAG Predecessor Group	Jul. 08, 2011 Property located in Youngstown, OH item	Jul. 08, 2011 Property located in Bardstown, KY	Oct. 18, 2013 Property located in Creedmoor, NC
Summary of significant accounting policies
Number of facilities for which a lease termination agreement was entered into for	2					1
Termination fee payable by tenant						$ 2,000,000		$ 2,500,000
Replenishment of a security deposit							200,000
Lease termination fee applied to outstanding accounts receivable	45,000
Termination income recognized and included in rental income		1,800,000
Estimated amount of real estate taxes, which are the responsibility of tenants		3,500,000	9,400,000	6,900,000	500,000
Income Taxes
Required minimum percentage distribution of ordinary taxable income to stockholders to qualify as a REIT (as a percent)			90.00%
State and local income, excise and franchise taxes		300,000	600,000	300,000
Liabilities for uncertain tax positions			0
Reconciliation of net loss to taxable income
Net income (loss)		(9,227,000)	4,902,000	(10,199,000)	(229,000)
Book/Tax differences from depreciation and amortization		12,625,000	46,389,000	24,048,000
Above/Below market lease amortization		2,776,000	6,544,000	4,837,000
Loss on Impairments				4,563,000
Formation transaction costs		3,169,000
Offering costs		78,000	27,000	68,000
Book/Tax difference on property acquisition costs		1,088,000	3,427,000	4,218,000
Loss on extinguishment of debt				565,000
Accrued non-recurring IPO bonus payment		1,000,000		(1,000,000)
Accrued bonus payment			440,000	3,731,000
Book/Tax difference on bad debt expense		526,000	19,000	317,000
Book/Tax difference on non-cash compensation		560,000	1,846,000	1,375,000
Book/Tax difference on gain on sale of real estate		(1,231,000)	(3,915,000)	(4,554,000)
Straight-line rent adjustments, net		(1,036,000)	(2,941,000)	(2,796,000)
Unrealized gain on interest rate swaps		(2,805,000)		(215,000)
Book/Tax difference on non-cash portion of interest expense			(106,000)	(159,000)
Other book/tax differences, net		(73,000)	28,000	63,000
Loss attributable to noncontrolling interest		(1,768,000)	(7,785,000)	(5,940,000)
Taxable income subject to distribution requirement		$ 5,682,000	$ 48,875,000	$ 18,922,000
Minimum distribution of taxable income (as a percent)		100.00%	100.00%	100.00%
Segment Reporting
Number of reportable segments			1
Number of operating segments			1

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Selected Interim Financial Information (unaudited) (Tables)

12 Months Ended

Dec. 31, 2013

Selected Interim Financial Information (unaudited)

Summary of selected quarterly information

The tables below reflect the Company's selected quarterly information for the quarters ended December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012, June 30, 2012, March 31, 2012.

	STAG Industrial, Inc.
	Quarter ended December 31, 2013		Quarter ended September 30, 2013			Quarter ended June 30, 2013			Quarter ended March 31, 2013
Total revenue	$	37,418	$	34,644		$	31,842		$	29,988
Income (loss) from continuing operations	$	1,126	$	265		$	(738	)	$	(547	)
Net income (loss) attributable to the common stockholders	$	2,098	$	(2,147	)	$	(2,410	)	$	(1,775	)
Income (loss) per share—basic and diluted	$	0.05	$	(0.05	)	$	(0.06	)	$	(0.04	)

	STAG Industrial, Inc.
	Quarter ended December 31, 2012			Quarter ended September 30, 2012			Quarter ended June 30, 2012			Quarter ended March 31, 2012
Total revenue	$	26,877		$	20,878		$	19,116		$	17,181
Income (loss) from continuing operations	$	(2,973	)	$	(1,371	)	$	(2,028	)	$	(1,445	)
Net income (loss) attributable to the common stockholders	$	(3,372	)	$	(5,262	)	$	(2,235	)	$	(1,942	)
Income (loss) per share—basic and diluted	$	(0.10	)	$	(0.18	)	$	(0.11	)	$	(0.12	)

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Equity (Details 2) (USD $) In Millions, except Share data, unless otherwise specified	0 Months Ended		1 Months Ended	9 Months Ended	12 Months Ended
	Jan. 03, 2013	Jan. 03, 2012	Apr. 30, 2011	Dec. 31, 2011	Dec. 31, 2013	Dec. 31, 2012
Restricted stock
Restricted Stock-Based Compensation
Number of installments over which restricted common stocks are subject to vest					5
2011 Plan
Restricted Stock-Based Compensation
Non-cash compensation expense recognized				$ 0.7	$ 3.0	$ 1.9
2011 Plan | Restricted stock
Restricted Stock-Based Compensation
Number of shares granted	106,268	87,025	80,809	80,809	106,268	87,025
Fair value of shares granted	1.9	1.0	1.0
Fair value of shares granted (in dollars per share)	$ 18.11	$ 11.89	$ 12.21
Non-cash compensation expense recognized				0.1	0.8	0.4
Fair value of shares vested				0	0.6	0.2
Unrecognized compensation expense for remaining life of the awards					$ 2.5	$ 1.5
Number of shares vested				0	32,012	16,161
Shares forfeited					11,540	1,559

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Schedule 3 - Real Estate and Accumulated Depreciation (Details 2) (USD $)	9 Months Ended	12 Months Ended					3 Months Ended	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013 Buildings	Dec. 31, 2013 Building and land improvements Minimum	Dec. 31, 2013 Building and land improvements Maximum	Apr. 19, 2011 STAG Predecessor Group	Dec. 31, 2010 STAG Predecessor Group
RealEstate:
Balance at beginning of period		$ 816,227,000	$ 502,258,000				$ 210,186,000	$ 210,009,000
Additions during period Other acquisitions	292,426,000	266,389,000	322,719,000
Additions during period Improvements etc.	4,513,000	6,757,000	3,541,000				39,000	1,500,000
Deductions during period Cost of real estate sold	(4,544,000)	(9,073,000)	(8,309,000)
Deductions during period Write-off of tenant improvements	(362,000)	(1,254,000)	(576,000)					(1,323,000)
Deductions during period Asset Impairments			(3,406,000)
Balance at the end of the period	502,258,000	1,079,046,000	816,227,000				210,225,000	210,186,000
Accumulated Depreciation:
Balance at beginning of period		46,175,000	30,004,000				19,261,000	14,626,000
Additions during period Depreciation and amortization expense	9,618,000	27,492,000	18,174,000				1,698,000	5,747,000
Deductions during period Disposals	(573,000)	(2,014,000)	(1,885,000)					(1,112,000)
Deductions during period Other reductions			(118,000)
Balance at the end of the period	30,004,000	71,653,000	46,175,000				20,959,000	19,261,000
Useful life				40 years	5 years	20 years
Unamortized balance of historical fair value adjustments		288,000
Aggregate cost for federal income tax purposes of investments in real estate		$ 1,400,000,000

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Equity Incentive Plan (Details) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended	0 Months Ended	9 Months Ended	12 Months Ended			0 Months Ended					9 Months Ended	12 Months Ended		0 Months Ended			1 Months Ended		3 Months Ended	9 Months Ended	12 Months Ended		0 Months Ended			1 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2013 OPP awards	Apr. 01, 2011 2011 Plan	Dec. 31, 2011 2011 Plan	Dec. 31, 2013 2011 Plan	Dec. 31, 2012 2011 Plan	Apr. 03, 2011 2011 Plan	Apr. 01, 2011 2011 Plan Stock option Maximum	Apr. 01, 2011 2011 Plan Stock appreciation rights Minimum	Apr. 01, 2011 2011 Plan Stock appreciation rights Maximum	Sep. 26, 2011 2011 Plan OPP awards item	Sep. 20, 2011 2011 Plan OPP awards	Dec. 31, 2011 2011 Plan OPP awards	Dec. 31, 2013 2011 Plan OPP awards	Dec. 31, 2012 2011 Plan OPP awards	Sep. 20, 2011 2011 Plan OPP awards Minimum	Sep. 20, 2011 2011 Plan OPP awards Maximum	Jan. 03, 2013 2011 Plan LTIP Units	Jan. 31, 2012 2011 Plan LTIP Units	Apr. 30, 2011 2011 Plan LTIP Units	Apr. 19, 2011 2011 Plan LTIP Units	Dec. 31, 2011 2011 Plan LTIP Units	Dec. 31, 2013 2011 Plan LTIP Units	Dec. 31, 2012 2011 Plan LTIP Units	May 06, 2013 2011 Plan Restricted stock	Jan. 03, 2013 2011 Plan Restricted stock	Jan. 03, 2012 2011 Plan Restricted stock	Apr. 30, 2011 2011 Plan Restricted stock	Dec. 31, 2011 2011 Plan Restricted stock	Dec. 31, 2013 2011 Plan Restricted stock	Dec. 31, 2012 2011 Plan Restricted stock
Equity Incentive Plan
Number of shares of common stock that are available for issuance				2,778,779	1,175,362	1,755,187
Additional shares of common stock awarded under the plan																								1,887,274
Maximum number of common stock that can be awarded																								3,642,461
Additional shares of common stock awarded under the plan as a percentage of common stock issued and outstanding																								7.50%
Number of shares of common stock equivalent to each LTIP unit (in shares)		1
Ratio by which number of shares available for grant is reduced for each LTIP unit awarded		1
Award expiration term							10 years		10 years
Exercise price as a percentage of fair market value of common stock							100.00%	100.00%
Period of total stockholder return considered for performance measurement											3 years
Beginning value of the company's common stock (in dollars per share)											$ 12.50
Amount of aggregate reward that can be earned by all recipients collectively																$ 10.0
Threshold percentage of increase in cumulative absolute total stockholder return															25.00%
Percentage of excess total stockholder return above relative total stockholder return hurdle											10.00%
Base return rate used in calculating relative stockholder return hurdle											MSCI US REIT Index
Percentage points added to base return rate in calculating relative total stockholder return hurdle											5.00%
Percentage of interests in the OPP awarded										100.00%
Awards vesting percentage										100.00%
Compensation expense			0.7	3.0	1.9							0.1	0.4	0.4						0	0.3	1.6	0.9					0.1	0.8	0.4
Number of shares issued																									106,268	87,025	80,809	80,809	106,268	87,025
Units granted (in shares)	0																				200,441	187,569	223,985
Unrecognized compensation expense													0.3	0.7								5.2	3.5						2.5	1.5
Weighted average period for recognition of unrecognized compensation expense				3 years 3 months 18 days	3 years 6 months
Unvested stock outstanding (in shares)																						368,760	301,043						214,389	150,114
Assumptions
Value of OPP awards										$ 1.2
Number of simulations run to determine the fair value of awards										100,000
Expected price volatility (as a percent)										55.00%							45.00%	50.00%	55.00%
MSCI US REIT Index (as a percent)										59.30%
Risk free rate (as a percent)										0.3423%							1.97%	3.40%	2.10%

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Use of Derivative Financial Instruments (Details) (USD $)	0 Months Ended		12 Months Ended		12 Months Ended				0 Months Ended	12 Months Ended							0 Months Ended	12 Months Ended	0 Months Ended	12 Months Ended	0 Months Ended	12 Months Ended	0 Months Ended	12 Months Ended	0 Months Ended
	Sep. 14, 2012 item	Sep. 14, 2012 Bank of America Unsecured Term Loan	Dec. 31, 2013 Bank of America Unsecured Term Loan	Sep. 10, 2012 Bank of America Unsecured Term Loan	Dec. 31, 2013 Wells Fargo Unsecured Term Loan	Aug. 01, 2013 Wells Fargo Unsecured Term Loan	Jul. 02, 2013 Wells Fargo Unsecured Term Loan	Mar. 01, 2013 Wells Fargo Unsecured Term Loan	Jun. 13, 2013 Interest Rate Swaps Wells Fargo Unsecured Term Loan item	Dec. 31, 2013 Interest rate swap one Bank of America Unsecured Term Loan	Dec. 31, 2013 Interest rate swap two Bank of America Unsecured Term Loan	Dec. 31, 2013 Interest rate swap three Bank of America Unsecured Term Loan	Dec. 31, 2013 Interest rate swap four Bank of America Unsecured Term Loan	Dec. 31, 2013 Interest rate swap five Bank of America Unsecured Term Loan	Dec. 31, 2013 Interest rate swap six Bank of America Unsecured Term Loan	Dec. 31, 2013 Interest rate swap seven Bank of America Unsecured Term Loan	Mar. 01, 2013 Interest rate swap eight Wells Fargo Unsecured Term Loan	Dec. 31, 2013 Interest rate swap eight Wells Fargo Unsecured Term Loan	Jun. 13, 2013 Interest rate swap nine Wells Fargo Unsecured Term Loan	Dec. 31, 2013 Interest rate swap nine Wells Fargo Unsecured Term Loan	Jun. 13, 2013 Interest rate swap ten Wells Fargo Unsecured Term Loan	Dec. 31, 2013 Interest rate swap ten Wells Fargo Unsecured Term Loan	Sep. 30, 2013 Interest rate swap eleven Wells Fargo Unsecured Term Loan	Dec. 31, 2013 Interest rate swap eleven Wells Fargo Unsecured Term Loan	Apr. 19, 2011 Wells Fargo Master Loan Swap	Apr. 19, 2011 STAG Predecessor Group Wells Fargo Master Loan Swap
Risk Management Objective of Using Derivatives
Number of additional interest rate swaps	7								2
Portion of Unsecured Term Loan swapped from LIBOR for fixed rate	$ 100,000,000		$ 100,000,000		$ 125,000,000												$ 25,000,000		$ 25,000,000		$ 50,000,000		$ 25,000,000
Variable rate received under agreement		One-month LIBOR	One-month LIBOR							One-month LIBOR	One-month LIBOR	One-month LIBOR	One-month LIBOR	One-month LIBOR	One-month LIBOR	One-month LIBOR	One-month LIBOR	One-month LIBOR	One-month LIBOR	One-month LIBOR	One-month LIBOR	One-month LIBOR	One-month LIBOR	One-month LIBOR	One-month LIBOR
Unsecured Term Loan		150,000,000		150,000,000	150,000,000
Derivative, Fixed Interest Rate								1.33%		0.7945%	0.7945%	0.7945%	0.7945%	0.7975%	0.7525%	0.727%		1.33%	1.703%	1.703%	1.681%	1.681%	1.9925%	1.9925%
Unsecured Term Loan Swaps
Notional Amount	$ 100,000,000					$ 25,000,000	$ 50,000,000	$ 25,000,000		$ 10,000,000	$ 10,000,000	$ 10,000,000	$ 10,000,000	$ 10,000,000	$ 25,000,000	$ 25,000,000		$ 25,000,000	$ 25,000,000	$ 25,000,000	$ 50,000,000	$ 50,000,000		$ 25,000,000		$ 141,000,000
Fixed Interest Rate (as a percent)								1.33%		0.7945%	0.7945%	0.7945%	0.7945%	0.7975%	0.7525%	0.727%		1.33%	1.703%	1.703%	1.681%	1.681%	1.9925%	1.9925%
Variable Interest Rate		One-month LIBOR	One-month LIBOR							One-month LIBOR	One-month LIBOR	One-month LIBOR	One-month LIBOR	One-month LIBOR	One-month LIBOR	One-month LIBOR	One-month LIBOR	One-month LIBOR	One-month LIBOR	One-month LIBOR	One-month LIBOR	One-month LIBOR	One-month LIBOR	One-month LIBOR	One-month LIBOR

XML

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2013

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation

        The Company's consolidated financial statements include the accounts of the Company, the Operating Partnership and their subsidiaries. The equity interests of other limited partners in the Operating Partnership are reflected as noncontrolling interest. The combined financial statements of STAG Predecessor Group include the accounts of STAG Predecessor Group and all entities in which STAG Predecessor Group had a controlling interest. All significant intercompany balances and transactions have been eliminated in the consolidation and combination of entities. The financial statements of the Company are presented on a consolidated basis, for all periods presented and comprise the consolidated historical financial statements of the transferred collection of real estate entities and holdings, upon the IPO. The combined financial information presented for periods on or prior to April 19, 2011 relate solely to STAG Predecessor Group. The financial statements for the periods after April 19, 2011 include the financial information of the Company, the Operating Partnership and their subsidiaries. Where the "Company" is referenced in comparisons of financial results for any date prior to and including April 19, 2011, the financial information for such period relates solely to STAG Predecessor Group, notwithstanding "Company" being the reference.

Consolidated and Combined Statements of Cash Flows—Supplemental Disclosures

        The following table provides supplemental disclosures related to the Consolidated and Combined Statements of Cash Flows (in thousands):

	STAG Industrial, Inc. Year ended December 31, 2013			STAG Industrial, Inc. Year ended December 31, 2012			STAG Industrial, Inc. Period from April 20, 2011 to December 31, 2011			STAG Predecessor Group Period from January 1, 2011 to April 19, 2011
Supplemental cash flow information
Cash paid for interest	$	19,272		$	15,044		$	11,445		$	2,433
Supplemental schedule of non-cash investing and financing activities
Acquisition of tangible assets	$	—		$	—		$	(215,890	)	$	—
Acquisition of goodwill upon Formation Transactions	$	—		$	—		$	(4,923	)	$	—
Acquisition of intangible assets upon Formation Transactions	$	—		$	—		$	(83,442	)	$	—
Assumption of mortgage notes payable	$	—		$	—		$	(201,789	)	$	—
Fair market value adjustment to mortgage notes payable acquired	$	—		$	—		$	(675	)	$	—
Assumption of related party notes payable upon Formation Transactions	$	—		$	—		$	4,466		$	—
Acquisition of intangible liabilities upon Formation Transactions	$	—		$	—		$	1,066		$	—
Acquisition of interest rate swaps upon Formation Transactions included in the purchase price allocation	$	—		$	—		$	420		$	—
Acquisition of other liabilities upon Formation Transactions	$	—		$	—		$	171		$	—
Issuance of units for acquisition of net assets upon Formation Transactions	$	—		$	—		$	95,670		$	—
Disposition of accrued lender fees upon Formation Transactions	$	—		$	—		$	—		$	4,420
Assumption of bridge loan for Option Properties upon Formation Transactions	$	—		$	—		$	—		$	(4,750	)
Assumption of note payable to related party for Option Properties upon Formation Transactions	$	—		$	—		$	—		$	(727	)
Assumption of interest rate swaps to related party for Option Properties upon Formation Transactions	$	—		$	—		$	—		$	(352	)
Non-cash investing activities included in additions of land and building improvements	$	(11,934	)	$	(440	)	$	(440	)	$	—
Issuance of units for acquisitions of properties	$	11,499		$	—		$	—		$	—
Write-off of fully depreciated tenant improvements	$	1,254		$	576		$	—		$	—
Write-off of accumulated depreciation	$	1,254		$	576		$	—		$	—
Dividends and distributions declared but not paid	$	5,166		$	11,301		$	6,160		$	—
Accrued distribution upon Formation Transactions	$	—		$	—		$	—		$	(1,392	)

Use of Estimates

        The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Real Estate and Deferred Lease Intangibles

        Real estate investments are carried at cost less accumulated depreciation and amortization. The cost of real estate includes the purchase price of the property and leasehold improvements. Expenditures for maintenance and repairs are expensed as incurred. Significant renovations and betterments that extend the economic useful lives of assets are capitalized.

        The Company evaluates the carrying value of all tangible and intangible real estate assets held for use for possible impairment when an event or change in circumstance has occurred that indicates their carrying value may not be recoverable. The evaluation includes estimating and reviewing anticipated future undiscounted cash flows to be derived from the asset and the ultimate sale of the asset. If such cash flows are less than the asset's carrying value, an impairment charge is recognized to the extent by which the asset's carrying value exceeds the estimated fair value. Estimating future cash flows is highly subjective and such estimates could differ from actual results.

        For properties considered held for sale, the Company ceases depreciating the properties and values the properties at the lower of depreciated cost or fair value, less costs to dispose. The Company classifies properties as held for sale when all criteria within the FASB's Accounting Standard Codification ("ASC") 360, Property, Plant and Equipment are met.

        The Company presents qualifying assets and liabilities and the results of operations that have been sold, or otherwise qualify as "held for sale," as discontinued operations in all periods presented if the property operations are expected to be eliminated and the Company will not have significant continuing involvement following the sale. The components of the property's net income (loss) are reflected as discontinued operations include operating results, depreciation and interest expense (if the property is subject to a secured loan).

        Expenditures for tenant improvements, leasehold improvements and leasing commissions are capitalized and amortized or depreciated over the shorter of their useful lives or the terms of each specific lease. Depreciation expense is computed using the straight-line method based on the following useful lives:

Buildings	40 years
Building and land improvements	5 - 20 years
Tenant improvements	Shorter of useful life or terms of related lease

        The Company evaluates acquisitions to determine if the acquisition represents an asset acquisition or business combination, and the Company accounts for all business combinations in accordance with ASC 805, Business Combinations. Upon acquisition of a property, the Company allocates the purchase price of the property based upon the fair value of the assets and liabilities acquired, which generally consist of land, buildings, tenant improvements and intangible assets including in-place leases, above market and below market leases and tenant relationships, as well as the fair value of debt assumed. The Company allocates the purchase price to the fair value of the tangible assets of an acquired property by valuing the property as if it were vacant. Acquired above and below market leases are valued based on the present value of the difference between prevailing market rates and the in-place rates measured over a period equal to the remaining term of the lease for above market leases and the initial term plus the term of any below market fixed rate renewal options for below market leases that are considered bargain renewal options. The above market lease values are amortized as a reduction of rental income over the remaining term of the respective leases, and the below market lease values are amortized as an increase to rental income over the remaining initial terms plus the terms of any below market fixed rate renewal options that are considered bargain renewal options of the respective leases.

        The purchase price is further allocated to in-place lease values and tenant relationships based on the Company's evaluation of the specific characteristics of each tenant's lease and its overall relationship with the respective tenant. The value of in-place lease intangibles and tenant relationships, which are included as components of deferred leasing intangibles, are amortized over the remaining lease term (and expected renewal periods of the respective lease for tenant relationships) as adjustments to depreciation and amortization expense. If a tenant terminates its lease, the unamortized portion of leasing commissions, above and below market leases, the in-place lease value and tenant relationships are immediately written off.

        In determining the fair value of the debt assumed, the Company discounts the spread between the future contractual interest payments and hypothetical future interest payments on mortgage debt based on a current market rate. The associated fair market value debt adjustment is amortized through interest expense over the life of the debt.

        Using information available at the time of acquisition, the Company allocates the total consideration to tangible assets and liabilities and identified intangible assets and liabilities. The Company may adjust the preliminary purchase price allocations after obtaining more information about asset valuations and liabilities assumed.

Cash and Cash Equivalents

        Cash and cash equivalents consist of cash and highly liquid short-term investments with original maturities of three months or less. The Company maintains cash and cash equivalents in United States banking institutions that may exceed amounts insured by the Federal Deposit Insurance Corporation. While the Company monitors the cash balances in its operating accounts, these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, the Company has experienced no loss or lack of access to cash in its operating accounts.

Restricted Cash

        Restricted cash may include security deposits and cash held in escrow for real estate taxes and capital improvements as required in various mortgage loan agreements. Restricted cash also may include amounts held by the Company's transfer agent for preferred stock dividends that are distributed subsequent to period end.

Tenant Accounts Receivable, net

        Tenant accounts receivable, net on the Consolidated Balance Sheets includes both tenant accounts receivable, net and accrued rental income, net. The Company provides an allowance for doubtful accounts against the portion of tenant accounts receivable that is estimated to be uncollectible. As of December 31, 2013 and December 31, 2012, the Company had an allowance for doubtful accounts of $19 thousand and $0, respectively.

        The Company accrues rental revenue earned, but not yet receivable, in accordance with GAAP. As of December 31, 2013 and December 31, 2012, the Company had accrued rental revenue of $9.3 million and $6.4 million, respectively. The Company maintains an allowance for estimated losses that may result from those revenues. If a tenant fails to make contractual payments beyond any allowance, the Company may recognize additional bad debt expense in future periods equal to the amount of unpaid rent and accrued rental revenue. As of December 31, 2013 and December 31, 2012, the Company had an allowance on accrued rental revenue of $0 and $0, respectively.

        As of December 31, 2013 and December 31, 2012, the Company had a total of approximately $4.9 million and $4.8 million, respectively, of total lease security deposits available in existing letters of credit, which are not reflected on the Company's Consolidated Balance Sheets; and $3.0 million and $2.0 million, respectively, of lease security deposits available in cash.

Deferred Costs

        Deferred financing fees include costs incurred in obtaining debt that are capitalized. The deferred financing fees are amortized to interest expense over the life of the respective loans on a basis which approximates the effective interest method. Any unamortized amounts upon early repayment of debt are written off in the period of repayment. For the year ended December 31, 2013, December 31, 2012, period April 20, 2011 through December 31, 2011 and the period January 1, 2011 through April 19, 2011 amortization of deferred financing fees included in interest expense was $1.2 million, $1.1 million, $0.8 million, and $31 thousand, respectively. Fully amortized deferred charges are removed from the books upon maturity of the underlying debt.

        Leasing commissions include commissions and other direct and incremental costs incurred to obtain new tenant leases as well as to renew existing tenant leases, which are capitalized and amortized over the terms of the related leases using the straight-line method. If a lease terminates prior to the expiration of its initial term, any unamortized costs related to the lease are written off to amortization expense. Changes in leasing commissions are presented in the cash flows from operating activities section of the Consolidated and Combined Statements of Cash Flows.

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. Goodwill of the Company represents amounts allocated to the assembled workforce from the acquired management company. The Company's goodwill has an indeterminate life and is not amortized, but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company takes 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.

Use of Derivative Financial Instruments

        The Company follows ASC 815, Derivatives and Hedging for disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why the Company uses derivative instruments, (b) how the Company accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect the Company's financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company's objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments.

        The Company records all derivatives on the Consolidated Balance Sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. 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. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.

        In accordance with the FASB's fair value measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting arrangements on a net basis by counterparty portfolio. Credit risk is the risk of failure of the counterparty to perform under the terms of the contract. The Company minimizes the credit risk in an interest rate swap by entering into transactions with high-quality counterparties. The Company's exposure to credit risk at any point is generally limited to amounts recorded as assets or liabilities on the Consolidated Balance Sheets.

Fair Value of Financial Instruments

        Financial instruments include cash and cash equivalents, restricted cash, tenant accounts receivable, interest rate swaps, accounts payable, other accrued expenses, Unsecured Credit Facility (defined in Note 5), Unsecured Term Loans (defined in Note 5) and mortgage notes payable. The fair values of the cash and cash equivalents, restricted cash, tenant accounts receivable, accounts payable and other accrued expenses approximate their carrying or contract values because of the short term maturity of these instruments. See Note 5 for the fair values of the Company's debt. See Note 6 for the fair values of the Company's interest rate swaps.

        The Company adopted the fair value measurement provisions for its financial instruments recorded at fair value. The guidance establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

Offering Costs

        Underwriting commissions and direct offering costs have been reflected as a reduction of additional paid-in capital. Indirect costs associated with equity offerings are expensed as incurred and included in Formation Transaction costs and offering costs on the accompanying Consolidated Statements of Operations.

Dividends

        Earnings and profits, which determine the taxability of dividends to stockholders, will differ from income reported for financial reporting purposes due to the differences for federal income tax purposes in the treatment of gains on the sale of real property, revenue and expense recognition, compensation expense, and in the estimated useful lives and basis used to compute depreciation. During the years ended December 31, 2013, December 31, 2012, and the period from April 20, 2011 to December 31, 2011, $6.2 million ($2.25 per share of Series A Preferred Stock), $6.2 million ($2.25 per share of Series A Preferred Stock) and $1.0 million ($0.36875 per share of Series A Preferred Stock) of Series A Preferred Stock dividends were paid, respectively, that were treated as ordinary income for tax purposes. During the year ended December 31, 2013, $3.3 million ($1.173175 per share of Series B Preferred Stock) of Series B Preferred Stock dividends were paid that were treated as ordinary income for tax purposes. The tax treatment of common dividends per share for federal income tax purposes is as follows:

	Year ended December 31, 2013					Year ended December 31, 2012					Period from April 20, 2011 to December 31, 2011
	Per Share		%			Per Share		%			Per Share		%
Ordinary income	$	0.9723		71.0	%	$	0.6340		59.8	%	$	0.3471		74.5	%
Return of capital		0.3703		27.0	%		0.4260		40.2	%		0.1186		25.5	%
Unrecaptured section 1250 capital gain		0.0137		1.0	%		—		—			—		—
Other capital gain		0.0137		1.0	%		—		—			—		—
Total(1)	$	1.37		100	%	$	1.06		100	%	$	0.4657		100	%

(1)

The fourth quarter 2012 common stock dividend of $0.27 per share was included in the stockholder's 2013 tax year. The December 2013 monthly common stock dividend of $0.10 per share will be included in the stockholder's 2014 tax year.

Revenue Recognition

        All current leases are classified as operating leases and rental revenue is recognized on a straight-line basis over the term of the lease when collectability is reasonably assured. Differences between rental revenue earned and amounts due under the lease are charged or credited, as applicable, to accrued rental revenue. Additional rents from expense reimbursements for insurance, real estate taxes and certain other expenses are recognized in the period in which the related expenses are incurred.

        Early lease termination fees are recorded in rental income on a straight-line basis from the notification date of such termination to the then remaining (not the original) lease term, if any, or upon collection if collection is not reasonably assured. On July 8, 2011, the Company entered into a lease termination agreement with the tenant of two facilities, one located in Youngstown, OH and the other in Bardstown, KY. The agreement provided that the Youngstown, OH lease terminated effective July 31, 2011 and required the tenant to pay a termination fee of $2.0 million. Of the termination fee paid, $0.2 million was a replenishment of a security deposit at the Bardstown, KY property, $45 thousand was applied to the outstanding accounts receivable, and the remaining amount of approximately $1.8 million was recognized as termination income and is included in rental income during the period April 20, 2011 to December 31, 2011. On October 18, 2013, the Company entered into a lease termination agreement with the tenant located at the Creedmoor, NC building. The agreement provided that the tenant's lease terminated effective October 31, 2013 and required the tenant to pay a termination fee of $2.5 million. The termination income is included in income (loss) attributable to discontinued operations on the accompanying Consolidated Statements of Operations as the property was sold on October 31, 2013 to an unaffiliated third party.

        The Company earns revenue from asset management fees, which are included on the Consolidated Statements of Operations in other income. The Company recognizes revenue from asset management fees when the related fees are earned and are realized or realizable.

        By the terms of their leases, certain tenants are obligated to pay directly the costs of their properties' insurance, real estate taxes, ground lease payments, and certain other expenses and these costs are not reflected on the Company's Consolidated and Combined Financial Statements. To the extent any tenant responsible for these costs under its respective lease defaults on its lease or it is deemed probable that the tenant will fail to pay for such costs, the Company would record a liability for such obligation. The Company estimates that real estate taxes, which are the responsibility of these certain tenants, was approximately $9.4 million for the year ended December 31, 2013, $6.9 million for the year ended December 31, 2012, $0.5 million for the period January 1, 2011 to April 19, 2011, $3.5 million for the period from April 20, 2011 to December 31, 2011. This would have been the maximum liability of the Company had the tenants not met their contractual obligations. The Company does not recognize recovery revenue related to leases where the tenant has assumed the cost for real estate taxes, insurance, ground lease payments and certain other expenses.

Gain on Sales of Real Estate

        Gain on sale of real estate is recognized pursuant to the provisions included in ASC 360-20, Real Estate Sales. The specific timing of the sale is measured against various criteria in ASC 360-20 related to the terms of the transaction and continuing involvement in the form of management or financial assistance associated with the properties. If the sales criteria for the full accrual method are not met, the Company defers some or all of the gain recognition and accounts for the continued operations of the property by applying the finance, leasing, profit sharing, deposit, installment or cost recovery methods, as appropriate, until the sales criteria are met.

Incentive and Equity-Based Employee Compensation Plans

        The Company grants equity-based compensation awards to its employees and directors typically in the form of restricted shares of common stock, long-term incentive plan units in the Operating Partnership ("LTIP units") and an outperformance program. See Notes 7, 8 and 14 for further discussion of restricted shares of common stock, LTIP units, and the outperformance program, respectively. The Company accounts for its equity-based employee compensation in accordance with ASC 718, Compensation—Stock Compensation. The Company measures equity-based compensation expense based on the fair value of the awards on the grant date and recognizes the expense ratably over the vesting period.

Income Taxes

        Prior to the IPO, the Predecessor was comprised primarily of limited partnerships and limited liability companies. Under applicable federal and state income tax rules, the allocated share of net income or loss from the limited partnerships and limited liability companies was reportable in the income tax returns of the respective partners and members.

        The Company elected to be taxed as a REIT under the Code commencing with its taxable year ended December 31, 2011 and intends to continue to qualify as a REIT. As a REIT, the Company is required to distribute at least 90% of its REIT taxable income to its stockholders and meet the various other requirements imposed by the Code relating to such matters as operating results, asset holdings, distribution levels and diversity of stock ownership. The Company is generally not subject to corporate level income tax on the earnings distributed currently to its stockholders that it derives from its REIT qualifying activities. If the Company fails to qualify as a REIT in any taxable year, and is unable to avail itself of certain savings provisions set forth in the Code, all of the Company's taxable income would be subject to federal income tax at regular corporate rates, including any applicable alternative minimum tax.

        The Company will not be required to make distributions with respect to income derived from the activities conducted through subsidiaries that the Company elects to treat as taxable REIT subsidiaries ("TRS") for federal income tax purposes. Certain activities that the Company undertakes must be conducted by a TRS, such as performing non-customary services for its tenants and holding assets that it cannot hold directly. A TRS is subject to federal and state income taxes. The TRS did not have any activity during the years ended December 31, 2013 and December 31, 2012 and the period April 20, 2011 to December 31, 2011.

        The Company and certain of its subsidiaries are subject to certain state and local income, excise and franchise taxes. Taxes in the amount of $0.6 million, $0.3 million and $0.3 million have been recorded in other expenses on the accompanying Consolidated Statements of Operations for the years ended December 31, 2013, December 31, 2012 and the period April 20, 2011 to December 31, 2011.

        The Company currently has no liabilities for uncertain tax positions.

        The following table reconciles net income (loss) to taxable income for the years ended December 31, 2013 and 2012, respectively, and the period April 20, 2011 to December 31, 2011 (in thousands):

	Year ended December 31, 2013			Year ended December 31, 2012			Period from April 20, 2011 to December 31, 2011
Net income (loss)	$	4,902		$	(10,199	)	$	(9,227	)
Book/Tax differences from depreciation and amortization		46,389			24,048			12,625
Above/Below market lease amortization		6,544			4,837			2,776
Loss on impairments		—			4,563			—
Formation Transaction costs		—			—			3,169
Offering costs		27			68			78
Book/Tax difference on property acquisition costs		3,427			4,218			1,088
Loss on extinguishment of debt		—			565			—
Accrued non-recurring IPO bonus payment		—			(1,000	)		1,000
Accrued bonus payment		440			3,731			—
Book/Tax difference on bad debt expense		19			317			526
Book/Tax difference on non-cash compensation		1,846			1,375			560
Book/Tax difference on gain on sales of real estate		(3,915	)		(4,554	)		(1,231	)
Straight-line rent adjustments, net		(2,941	)		(2,796	)		(1,036	)
Unrealized gain on interest rate swaps		—			(215	)		(2,805	)
Book/tax difference on non-cash portion of interest expense		(106	)		(159	)		—
Other book/tax differences, net		28			63			(73	)
Loss attributable to noncontrolling interest		(7,785	)		(5,940	)		(1,768	)
Taxable income subject to distribution requirement(1)	$	48,875		$	18,922		$	5,682

(1)

The Company distributed in excess of 100% of its taxable income to its stockholders during the years ended December 31, 2013 and December 31, 2012, and the period April 20, 2011 to December 31, 2011, respectively.

Earnings Per Share

        The Company uses the two-class method of computing earnings per common share, which is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Under the two-class method, basic earnings per common share are computed by dividing the sum of distributed earnings to common stockholders and undistributed earnings allocated to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur from shares issuable in connection with awards under incentive and equity-based compensation plans.

Segment Reporting

        The Company manages its operations on an aggregated, single segment basis for purposes of assessing performance and making operating decisions and, accordingly, has only one reporting and operating segment.

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Related Party Transactions (Details) (USD $)	5 Months Ended							3 Months Ended	0 Months Ended	3 Months Ended	0 Months Ended	5 Months Ended	9 Months Ended	12 Months Ended			12 Months Ended	0 Months Ended		3 Months Ended	0 Months Ended
	Apr. 05, 2013 building	Dec. 31, 2013 building	Dec. 31, 2012	Jun. 11, 2012 sqft	Dec. 31, 2013 Fund II building sqft	Dec. 31, 2013 Fund III building	Apr. 20, 2011 Fund III building	Apr. 19, 2011 STAG Predecessor Group	Jun. 06, 2007 Affiliate of NED Credit Inc. STAG Predecessor Group	Apr. 19, 2011 Affiliate of NED Credit Inc. STAG Predecessor Group	Oct. 31, 2012 Fund II - Related Party property	Apr. 05, 2013 Fund II - Related Party building	Dec. 31, 2011 Fund II - Related Party	Dec. 31, 2013 Fund II - Related Party	Dec. 31, 2012 Fund II - Related Party	Oct. 09, 2012 Fund II - Related Party sqft	Dec. 31, 2013 STAG Industrial Management, LLC (the "Manager") Fund II	Apr. 20, 2011 STAG Industrial Management, LLC (the "Manager") Fund III	Sep. 10, 2012 STAG Industrial Management, LLC (the "Manager") Fund IV	Apr. 19, 2011 Management Company STAG Predecessor Group	Oct. 09, 2012 STAG Investments Holdings II, LLC building
Related party transactions
Annual guaranty fee (as a percent)									9.00%
Guarantee fees expensed										$ 900,000
Asset management fees expensed								162,000												200,000
Number of buildings owned		209			44	0	3
Net rentable square feet				190,000	7,400,000											4,300,000
Annual asset management fee based on the equity investment (as a percent)																	1.25%
Asset management fees recognized													900,000	800,000	1,100,000
Asset management fees receivable														200,000	500,000
Annual management fee per property																		30,000
Administration fee																		20,000	20,000
Total number of industrial properties acquired	33										1	2									31
Aggregate purchase price of industrial properties acquired											5,000,000	6,200,000				127,600,000
Due from related parties		$ 185,000	$ 806,000												$ 200,000

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Real Estate (Details) (USD $)	0 Months Ended	5 Months Ended	9 Months Ended	12 Months Ended		0 Months Ended		5 Months Ended	12 Months Ended
	Jun. 19, 2013 property	Apr. 05, 2013 building	Dec. 31, 2011	Dec. 31, 2013 property sqft	Dec. 31, 2012 property sqft	Oct. 09, 2012 STAG Investments Holdings II, LLC building	Oct. 31, 2012 Fund II - Related Party property	Apr. 05, 2013 Fund II - Related Party building	Dec. 31, 2013 Above market leases	Dec. 31, 2012 Above market leases	Dec. 31, 2013 Below market leases	Dec. 31, 2012 Below market leases	Dec. 31, 2013 In-place leases	Dec. 31, 2012 In-place leases	Dec. 31, 2013 Tenant relationships	Dec. 31, 2012 Tenant relationships	Dec. 31, 2013 Series of individually insignificant properties property	Dec. 31, 2012 Series of individually insignificant properties	Dec. 31, 2013 Orangeburg, SC property sqft	Dec. 31, 2013 Golden, CO property sqft	Dec. 31, 2013 Columbia, SC property sqft	Dec. 31, 2013 DeKalb, IL property sqft	Dec. 31, 2013 Ocala, FL property sqft	Dec. 31, 2013 Londonderry, NH property sqft	Dec. 31, 2013 Marion, IA property sqft	Dec. 31, 2013 Mishawaka, IN property sqft	Dec. 31, 2013 Southfield, MI property acre sqft	Dec. 31, 2013 Houston, TX property sqft	Dec. 31, 2013 Idaho Falls, ID property sqft	Dec. 31, 2013 Mt. Prospect, IL property sqft	Dec. 31, 2013 Williamsport, PA property sqft	Dec. 31, 2013 Belvidere, IL property sqft	Dec. 31, 2013 Kentwood, MI property sqft	Dec. 31, 2013 Marshall, MI property sqft	Dec. 31, 2013 Nashville, TN property sqft	Dec. 31, 2013 Catoosa, OK property sqft	Dec. 31, 2013 New Berlin, WI property sqft	Dec. 31, 2013 Hampstead, MD property sqft	Dec. 31, 2013 New Hope, MN property sqft	Dec. 31, 2013 Springfield, OH property sqft	Dec. 31, 2013 Orlando, FL property sqft	Dec. 31, 2013 North Jackson, OH property sqft	Dec. 31, 2013 Mebane, NC property sqft	Dec. 31, 2012 Mebane, NC property sqft	Dec. 31, 2013 Shannon, GA property sqft	Dec. 31, 2013 Lansing, MI property sqft	Dec. 31, 2013 Harvard, IL property sqft	Dec. 31, 2013 Sauk Village, IL property sqft	Dec. 31, 2013 South Holland, IL property sqft	Dec. 31, 2013 Mascot, TN property sqft	Dec. 31, 2013 Janesville, WI property sqft	Dec. 31, 2012 East Windsor, CT property sqft	Dec. 31, 2012 South Bend, IN property sqft	Dec. 31, 2012 Lansing, MI property sqft	Dec. 31, 2012 Portland, ME property sqft	Dec. 31, 2012 Portland, TN property sqft	Dec. 31, 2012 Spartanburg, SC property sqft	Dec. 31, 2012 Franklin, IN property sqft	Dec. 31, 2012 Muhlenberg Township, PA property sqft	Dec. 31, 2012 Avon, CT property sqft	Dec. 31, 2012 Orlando, FL property sqft	Dec. 31, 2012 Pineville, NC property sqft	Dec. 31, 2012 Buffalo, NY property sqft	Dec. 31, 2012 Edgefield, SC property sqft	Dec. 31, 2012 Arlington, TX property sqft	Dec. 31, 2012 Bellevue, OH property sqft	Dec. 31, 2012 Atlanta, GA property sqft	Dec. 31, 2012 Huntersville, NC property sqft	Dec. 31, 2012 Simpsonville, SC property sqft	Dec. 31, 2012 Simpsonville, SC property sqft	Dec. 31, 2012 Dallas, GA property sqft	Dec. 31, 2012 Mebane, NC property sqft	Dec. 31, 2012 De Pere, WI property sqft	Dec. 31, 2012 Duncan, SC property sqft	Dec. 31, 2012 Duncan, SC property sqft	Dec. 31, 2012 Buena Vista, VA property sqft	Dec. 31, 2012 Gurnee, IL property sqft	Dec. 31, 2012 Auburn Hills, MI property sqft	Dec. 31, 2012 El Paso, TX property sqft	Dec. 31, 2012 Gloversville, NY property sqft	Dec. 31, 2012 Gloversville, NY property sqft	Dec. 31, 2012 Gloversville, NY property sqft	Dec. 31, 2012 Gloversville, NY property sqft	Dec. 31, 2012 Greenwood, SC property sqft	Dec. 31, 2012 Greenwood, SC property sqft	Dec. 31, 2012 Holland, MI property sqft	Dec. 31, 2012 Independence, VA property sqft	Dec. 31, 2012 Jackson, TN property sqft	Dec. 31, 2012 Johnstown, NY property sqft	Dec. 31, 2012 Johnstown, NY property sqft	Dec. 31, 2012 Johnstown, NY property sqft	Dec. 31, 2012 Johnstown, NY property sqft	Dec. 31, 2012 Kansas City, KS property sqft	Dec. 31, 2012 Lafayette, IN property sqft	Dec. 31, 2012 Lafayette, IN property sqft	Dec. 31, 2012 Lafayette, IN property sqft	Dec. 31, 2012 Lansing, MI property sqft	Dec. 31, 2012 Marion, IN property sqft	Dec. 31, 2012 Novi, MI property sqft	Dec. 31, 2012 O'Hara, PA property sqft	Dec. 31, 2012 Parsons, KS property sqft	Dec. 31, 2012 Phenix City, AL property sqft	Dec. 31, 2012 Portage, IN property sqft	Dec. 31, 2012 Ware Shoals, SC property sqft	Dec. 31, 2012 Wichita, KS property sqft	Dec. 31, 2012 Wichita, KS property sqft	Dec. 31, 2012 Wichita, KS property sqft	Dec. 31, 2012 Wichita, KS property sqft	Dec. 31, 2012 Chicopee, MA property sqft	Dec. 31, 2012 Sterling Heights, MI property sqft	Dec. 31, 2012 Harrisonburg, VA property sqft	Dec. 31, 2012 Toledo, OH property sqft	Dec. 31, 2012 Woodstock, IL property sqft	Dec. 31, 2012 Kansas City, MO property sqft	Dec. 31, 2012 Smyrna, GA property sqft	Dec. 31, 2012 Montgomery, IL property sqft	Dec. 31, 2012 Statham, GA property sqft
Formation transactions
Area (in square feet)				9,028,388	12,829,194														319,000	227,500	273,280	146,740	619,466	125,060	95,500	308,884	113,000	201,574	90,300	87,380	250,000	1,006,960	85,157	57,025	150,000	100,100	205,063	1,035,249	107,348	350,500	215,900	209,835	383,500	202,691	568,516	160,000	126,304	375,785	202,902	130,560	700,000	145,000	225,000	129,325	100,600	414,043	409,600	703,496	394,289	78,400	155,000	75,400	117,000	126,190	196,000	181,838	407,981	185,570	204,952	207,042	92,807	223,340	200,000	474,000	313,380	172,759	223,760	87,932	269,245	50,000	101,589	26,529	59,965	104,955	70,100	195,000	120,000	250,000	52,500	60,000	42,325	57,102	56,580	71,400	120,000	275,000	250,100	249,600	120,800	887,084	120,000	117,568	212,000	20,514	80,850	120,000	44,760	47,700	217,000	108,000	357,673	177,500	129,803	226,576	102,000	584,301	225,680
Number of buildings acquired				39	70														1	1	1	1	1	1	1	1	1	1	1	1	1	8	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	4	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1
Area of land owned adjacent to building																											5.4
Number of industrial properties acquired						31
Total number of industrial properties acquired		33				31	1	2
Allocation of the consideration paid for the acquired assets and liabilities
Land				$ 31,310,000	$ 34,991,000
Buildings				223,420,000	269,616,000
Tenant improvements				2,526,000	10,624,000
Cash escrow for capital additions					785,000
Amortizable intangible assets									8,219,000	16,728,000	(2,538,000)	(5,962,000)	50,005,000	63,397,000	21,257,000	26,241,000
Building and land Improvements				9,133,000	7,488,000
Net assets acquired				343,332,000	423,908,000
Weighted Average Amortization Period of Lease Intangibles									5 years 9 months 18 days	10 years	7 years 2 months 12 days	6 years 6 months	5 years 9 months 18 days	6 years 7 months 6 days	8 years 2 months 12 days	8 years 2 months 12 days
Number of buildings purchased through issuance of common stock	8
Number of common units issued as a consideration for purchase of building	555,758
Fair value of common units issued	11,500,000
Purchase price paid in cash	40,100,000
Total revenue																	16,700,000
Net income																	400,000
Property acquisition costs			1,088,000	3,427,000	4,218,000												3,000,000	3,600,000
Number of buildings acquired whose results of operations are included in the consolidated statement of operations																	39
Pro forma information
Total revenue				154,866,000	152,962,000
Net income (loss)				11,780,000	(12,286,000)
Net income attributable to common stockholders				$ 1,715,000	$ (14,424,000)
Weighted average shares outstanding				42,364,125	25,046,664
Net income per share attributable to common stockholders (in dollars per share)				$ (0.04)	$ (0.58)

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Real Estate (Tables)

12 Months Ended

Dec. 31, 2013

Real Estate

Summary of acquisitions of the Company

Year ended December 31, 2013

Property Location	Date Acquired		Square Feet		Buildings
Orangeburg, SC		2/7/2013		319,000		1
Golden, CO		2/27/2013		227,500		1
Columbia, SC		2/28/2013		273,280		1
DeKalb, IL		3/15/2013		146,740		1
Ocala, FL		3/26/2013		619,466		1
Londonderry, NH		3/28/2013		125,060		1
Marion, IA		3/28/2013		95,500		1
Mishawaka, IN		4/5/2013		308,884		1
Southfield, MI(1)		4/9/2013		113,000		1
Houston, TX		4/9/2013		201,574		1
Idaho Falls, ID		4/11/2013		90,300		1
Mt. Prospect, IL		5/14/2013		87,380		1
Williamsport, PA		5/31/2013		250,000		1
Belvidere, IL		6/19/2013		1,006,960		8
Kentwood, MI		6/26/2013		85,157		1
Marshall, MI		6/26/2013		57,025		1
Nashville, TN		7/18/2013		150,000		1
Catoosa, OK		7/31/2013		100,100		1
New Berlin, WI		8/16/2013		205,063		1
Hampstead, MD		8/21/2013		1,035,249		1
New Hope, MN		9/20/2013		107,348		1
Springfield, OH		9/26/2013		350,500		1
Orlando, FL		10/8/2013		215,900		1
North Jackson, OH		11/6/2013		209,835		1
Mebane, NC		11/14/2013		383,500		1
Shannon, GA		11/26/2013		568,516		1
Lansing, MI		12/11/2013		160,000		1
Harvard, IL		12/17/2013		126,304		1
Sauk Village, IL		12/17/2013		375,785		1
South Holland, IL		12/17/2013		202,902		1
Mascot, TN		12/19/2013		130,560		1
Janesville, WI		12/27/2013		700,000		1
Total				9,028,388		39

(1)

The Company also owns a 5.4 acre vacant land parcel adjacent to this building.

Year ended December 31, 2012

Property Location	Date Acquired		Square Feet		Buildings
East Windsor, CT		3/1/2012		145,000		1
South Bend, IN		3/8/2012		225,000		1
Lansing, MI		3/21/2012		129,325		1
Portland, ME		3/27/2012		100,600		1
Portland, TN		3/30/2012		414,043		1
Spartanburg, SC		4/5/2012		409,600		4
Franklin, IN		4/17/2012		703,496		1
Muhlenberg Township, PA		5/24/2012		394,289		1
Avon, CT		6/15/2012		78,400		1
Orlando, FL		6/15/2012		155,000		1
Pineville, NC		6/15/2012		75,400		1
Buffalo, NY		6/15/2012		117,000		1
Edgefield, SC		6/15/2012		126,190		1
Arlington, TX		6/15/2012		196,000		1
Bellevue, OH		7/18/2012		181,838		1
Atlanta, GA		8/1/2012		407,981		1
Huntersville, NC		8/6/2012		185,570		1
Simpsonville, SC		8/23/2012		204,952		1
Simpsonville, SC		8/23/2012		207,042		1
Dallas, GA		9/4/2012		92,807		1
Mebane, NC		9/4/2012		223,340		1
Mebane, NC		9/4/2012		202,691		1
De Pere, WI		9/13/2012		200,000		1
Duncan, SC		9/21/2012		474,000		1
Duncan, SC		9/21/2012		313,380		1
Buena Vista, VA		9/27/2012		172,759		1
Gurnee, IL		9/28/2012		223,760		1
Auburn Hills, MI		10/9/2012		87,932		1
El Paso, TX		10/9/2012		269,245		1
Gloversville, NY		10/9/2012		50,000		1
Gloversville, NY		10/9/2012		101,589		1
Gloversville, NY		10/9/2012		26,529		1
Gloversville, NY		10/9/2012		59,965		1
Greenwood, SC		10/9/2012		104,955		1
Greenwood, SC		10/9/2012		70,100		1
Holland, MI		10/9/2012		195,000		1
Independence, VA		10/9/2012		120,000		1
Jackson, TN		10/9/2012		250,000		1
Johnstown, NY		10/9/2012		52,500		1
Johnstown, NY		10/9/2012		60,000		1
Johnstown, NY		10/9/2012		42,325		1
Johnstown, NY		10/9/2012		57,102		1
Kansas City, KS		10/9/2012		56,580		1
Lafayette, IN		10/9/2012		71,400		1
Lafayette, IN		10/9/2012		120,000		1
Lafayette, IN		10/9/2012		275,000		1
Lansing, MI		10/9/2012		250,100		1
Marion, IN		10/9/2012		249,600		1
Novi, MI		10/9/2012		120,800		1
O'Hara, PA		10/9/2012		887,084		1
Parsons, KS		10/9/2012		120,000		1
Phenix City, AL		10/9/2012		117,568		1
Portage, IN		10/9/2012		212,000		1
Ware Shoals, SC		10/9/2012		20,514		1
Wichita, KS		10/9/2012		80,850		1
Wichita, KS		10/9/2012		120,000		1
Wichita, KS		10/9/2012		44,760		1
Wichita, KS		10/9/2012		47,700		1
Chicopee, MA		10/26/2012		217,000		1
Sterling Heights, MI		10/31/2012		108,000		1
Harrisonburg, VA		11/29/2012		357,673		1
Toledo, OH		12/13/2012		177,500		1
Woodstock, IL		12/14/2012		129,803		1
Kansas City, MO		12/19/2012		226,576		1
Smyrna, GA		12/20/2012		102,000		1
Montgomery, IL		12/20/2012		584,301		1
Statham, GA		12/21/2012		225,680		1
Total				12,829,194		70

Summary of allocation of the consideration paid for the acquired assets and liabilities in connection with the acquisition of buildings at the date of acquisition

The following table (in thousands) summarizes the allocation of the consideration paid during the year ended December 31, 2013 and the year ended December 31, 2012, respectively, for the acquired assets and liabilities in connection with the acquisitions of buildings at the date of acquisition identified in the table above (in thousands):

	Year Ended December 31, 2013			Weighted Average Amortization Period (years) Lease Intangibles		Year Ended December 31, 2012			Weighted Average Amortization Period (years) Lease Intangibles
Land	$	31,310			N/A	$	34,991			N/A
Buildings		223,420			N/A		269,616			N/A
Tenant improvements		2,526			N/A		10,624			N/A
Cash escrow for capital additions		—			N/A		785			N/A
Above market leases		8,219			5.8		16,728			10.0
Below market leases		(2,538	)		7.2		(5,962	)		6.5
In-place leases		50,005			5.8		63,397			6.6
Tenant relationships		21,257			8.2		26,241			8.2
Building and land improvements		9,133			N/A		7,488			N/A
Net assets acquired	$	343,332				$	423,908

Schedule of pro forma information presented as if, the acquisitions of the buildings had occurred at the beginning of the previous fiscal period

Pro Forma	Year ended December 31, 2013 (in thousands, except share data)(1)
Total revenue	$	154,866
Net income(2)	$	11,780
Net income attributable to common stockholders	$	1,715
Weighted average shares outstanding		42,364,125
Net income per share attributable to common stockholders	$	0.04

Pro Forma	Year ended December 31, 2012 (in thousands, except share data)(3)
Total revenue	$	152,962
Net loss(2)	$	(12,286	)
Net loss attributable to common stockholders	$	(14,424	)
Weighted average shares outstanding		25,046,664
Net loss per share attributable to common stockholders	$	(0.58	)

(1)

The unaudited pro forma information for the year ended December 31, 2013 is presented as if the properties acquired during the year ended December 31, 2013 had occurred at January 1, 2012, the beginning of the reporting period prior to acquisition.

(2)

The net income for the year ended December 31, 2013 excludes $3.0 million of property acquisition costs related to the acquisition of buildings that closed during the year ended December 31, 2013, and the net loss for the year ended December 31, 2012 was adjusted to include these acquisition costs. Net loss for the year ended December 31, 2012 excludes $3.6 million of property acquisition costs related to the acquisition of buildings that closed during the year ended December 31, 2012.

(3)

The unaudited pro forma information for the year ended December 31, 2012 is presented as if the properties acquired during the year ended December 31, 2013 and the properties acquired during the year ended December 31, 2012 had occurred at January 1, 2012 and January 1, 2011, respectively, the beginning of the reporting period prior to acquisition.

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Summary of Significant Accounting Policies

Schedule of supplemental disclosures related to the Consolidated and Combined Statements of Cash Flows

The following table provides supplemental disclosures related to the Consolidated and Combined Statements of Cash Flows (in thousands):

	STAG Industrial, Inc. Year ended December 31, 2013			STAG Industrial, Inc. Year ended December 31, 2012			STAG Industrial, Inc. Period from April 20, 2011 to December 31, 2011			STAG Predecessor Group Period from January 1, 2011 to April 19, 2011
Supplemental cash flow information
Cash paid for interest	$	19,272		$	15,044		$	11,445		$	2,433
Supplemental schedule of non-cash investing and financing activities
Acquisition of tangible assets	$	—		$	—		$	(215,890	)	$	—
Acquisition of goodwill upon Formation Transactions	$	—		$	—		$	(4,923	)	$	—
Acquisition of intangible assets upon Formation Transactions	$	—		$	—		$	(83,442	)	$	—
Assumption of mortgage notes payable	$	—		$	—		$	(201,789	)	$	—
Fair market value adjustment to mortgage notes payable acquired	$	—		$	—		$	(675	)	$	—
Assumption of related party notes payable upon Formation Transactions	$	—		$	—		$	4,466		$	—
Acquisition of intangible liabilities upon Formation Transactions	$	—		$	—		$	1,066		$	—
Acquisition of interest rate swaps upon Formation Transactions included in the purchase price allocation	$	—		$	—		$	420		$	—
Acquisition of other liabilities upon Formation Transactions	$	—		$	—		$	171		$	—
Issuance of units for acquisition of net assets upon Formation Transactions	$	—		$	—		$	95,670		$	—
Disposition of accrued lender fees upon Formation Transactions	$	—		$	—		$	—		$	4,420
Assumption of bridge loan for Option Properties upon Formation Transactions	$	—		$	—		$	—		$	(4,750	)
Assumption of note payable to related party for Option Properties upon Formation Transactions	$	—		$	—		$	—		$	(727	)
Assumption of interest rate swaps to related party for Option Properties upon Formation Transactions	$	—		$	—		$	—		$	(352	)
Non-cash investing activities included in additions of land and building improvements	$	(11,934	)	$	(440	)	$	(440	)	$	—
Issuance of units for acquisitions of properties	$	11,499		$	—		$	—		$	—
Write-off of fully depreciated tenant improvements	$	1,254		$	576		$	—		$	—
Write-off of accumulated depreciation	$	1,254		$	576		$	—		$	—
Dividends and distributions declared but not paid	$	5,166		$	11,301		$	6,160		$	—
Accrued distribution upon Formation Transactions	$	—		$	—		$	—		$	(1,392	)

Schedule of estimated useful lives

Buildings	40 years
Building and land improvements	5 - 20 years
Tenant improvements	Shorter of useful life or terms of related lease

Schedule of tax treatment of common dividends per share for federal income tax

	Year ended December 31, 2013					Year ended December 31, 2012					Period from April 20, 2011 to December 31, 2011
	Per Share		%			Per Share		%			Per Share		%
Ordinary income	$	0.9723		71.0	%	$	0.6340		59.8	%	$	0.3471		74.5	%
Return of capital		0.3703		27.0	%		0.4260		40.2	%		0.1186		25.5	%
Unrecaptured section 1250 capital gain		0.0137		1.0	%		—		—			—		—
Other capital gain		0.0137		1.0	%		—		—			—		—
Total(1)	$	1.37		100	%	$	1.06		100	%	$	0.4657		100	%

(1)

The fourth quarter 2012 common stock dividend of $0.27 per share was included in the stockholder's 2013 tax year. The December 2013 monthly common stock dividend of $0.10 per share will be included in the stockholder's 2014 tax year.

Schedule of reconciliation of net income (loss) to taxable income

The following table reconciles net income (loss) to taxable income for the years ended December 31, 2013 and 2012, respectively, and the period April 20, 2011 to December 31, 2011 (in thousands):

	Year ended December 31, 2013			Year ended December 31, 2012			Period from April 20, 2011 to December 31, 2011
Net income (loss)	$	4,902		$	(10,199	)	$	(9,227	)
Book/Tax differences from depreciation and amortization		46,389			24,048			12,625
Above/Below market lease amortization		6,544			4,837			2,776
Loss on impairments		—			4,563			—
Formation Transaction costs		—			—			3,169
Offering costs		27			68			78
Book/Tax difference on property acquisition costs		3,427			4,218			1,088
Loss on extinguishment of debt		—			565			—
Accrued non-recurring IPO bonus payment		—			(1,000	)		1,000
Accrued bonus payment		440			3,731			—
Book/Tax difference on bad debt expense		19			317			526
Book/Tax difference on non-cash compensation		1,846			1,375			560
Book/Tax difference on gain on sales of real estate		(3,915	)		(4,554	)		(1,231	)
Straight-line rent adjustments, net		(2,941	)		(2,796	)		(1,036	)
Unrealized gain on interest rate swaps		—			(215	)		(2,805	)
Book/tax difference on non-cash portion of interest expense		(106	)		(159	)		—
Other book/tax differences, net		28			63			(73	)
Loss attributable to noncontrolling interest		(7,785	)		(5,940	)		(1,768	)
Taxable income subject to distribution requirement(1)	$	48,875		$	18,922		$	5,682

(1)

The Company distributed in excess of 100% of its taxable income to its stockholders during the years ended December 31, 2013 and December 31, 2012, and the period April 20, 2011 to December 31, 2011, respectively.

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Earnings Per Share (Details) (Unvested restricted stock)	9 Months Ended	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2013	Dec. 31, 2012
Unvested restricted stock
Antidilutive participating securities
Unvested shares of restricted stock on a weighted average basis excluded from computation of earnings per share (in shares)	80,809	218,934	155,488

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Real Estate (Details 2) (USD $)	3 Months Ended								9 Months Ended	12 Months Ended			0 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended		3 Months Ended	9 Months Ended	0 Months Ended	9 Months Ended	12 Months Ended			0 Months Ended	9 Months Ended	12 Months Ended			0 Months Ended	3 Months Ended	9 Months Ended	12 Months Ended		0 Months Ended	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Dec. 31, 2013	Dec. 31, 2012	Jun. 11, 2012 sqft	Nov. 30, 2012 Great Bend, KS	Sep. 30, 2012 Great Bend, KS	Apr. 19, 2011 Great Bend, KS	Dec. 31, 2011 Great Bend, KS	Sep. 30, 2012 Great Bend, KS	Dec. 31, 2013 Great Bend, KS	Dec. 31, 2012 Great Bend, KS	Sep. 30, 2012 In-place lease intangibles Great Bend, KS	Sep. 30, 2012 In-place lease intangibles Great Bend, KS	Jun. 11, 2013 Flex/office building in Pittburgh, PA	Dec. 31, 2011 Flex/office building in Pittburgh, PA	Dec. 31, 2013 Flex/office building in Pittburgh, PA	Dec. 31, 2012 Flex/office building in Pittburgh, PA	Jun. 13, 2013 Flex/office building in Pittburgh, PA sqft	Oct. 31, 2013 Warehouse and distribution building in Creedmoor, NC sqft	Dec. 31, 2011 Warehouse and distribution building in Creedmoor, NC	Dec. 31, 2013 Warehouse and distribution building in Creedmoor, NC	Dec. 31, 2012 Warehouse and distribution building in Creedmoor, NC	Oct. 18, 2013 Warehouse and distribution building in Creedmoor, NC	Apr. 20, 2012 Warehouse and distribution facility located in Youngstown, OH sqft	Apr. 19, 2011 Warehouse and distribution facility located in Youngstown, OH	Dec. 31, 2011 Warehouse and distribution facility located in Youngstown, OH	Dec. 31, 2013 Warehouse and distribution facility located in Youngstown, OH	Dec. 31, 2012 Warehouse and distribution facility located in Youngstown, OH	Dec. 22, 2011 Flex/office property located in Amesbury, MA sqft	Apr. 19, 2011 Flex/office property located in Amesbury, MA	Dec. 31, 2011 Flex/office property located in Amesbury, MA	Dec. 31, 2013 Flex/office property located in Amesbury, MA	Dec. 31, 2012 Flex/office property located in Amesbury, MA
Disposal of real estate properties
Net rentable square feet												190,000														53,183	243,048					153,708					78,000
Carrying value of property sold	$ 1,007,393,000				$ 770,052,000					$ 1,007,393,000	$ 770,052,000		$ 4,000,000													$ 4,400,000	$ 4,500,000					$ 3,000,000					$ 4,200,000
Sales price																						5,100,000					9,500,000					3,400,000					4,800,000
Net proceeds from sales of discontinued operations									4,507,000	14,181,000	7,221,000		4,000,000									4,800,000					9,300,000					3,200,000					4,500,000
Gain on sales of real estate									329,000	5,305,000	222,000		3,000									500,000					4,800,000					200,000					300,000
Termination fee payable by tenant																															2,500,000
Amount contributed to total revenue by the property sold	37,418,000	34,644,000	31,842,000	29,988,000	26,877,000	20,878,000	19,116,000	17,181,000	41,116,000	133,893,000	84,052,000				400,000	800,000		0	1,800,000				400,000	300,000	500,000			600,000	700,000	900,000			200,000	2,000,000	0	0		0	0	0	0
Loss on impairment														3,900,000			3,900,000			700,000	700,000
Sales price under purchase and sale agreement to sell the building													$ 4,000,000

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Deferred Leasing Intangibles (Tables)

12 Months Ended

Dec. 31, 2013

Deferred Leasing Intangibles

Schedule of deferred leasing intangibles included in total assets

Deferred leasing intangibles included in total assets consisted of the following (in thousands):

	December 31, 2013			December 31, 2012
In-place leases	$	142,518		$	108,363
Less: Accumulated amortization		(49,756	)		(28,289	)
In-place leases, net		92,762			80,074
Above market leases		57,283			50,699
Less: Accumulated amortization		(17,232	)		(10,362	)
Above market leases, net		40,051			40,337
Tenant relationships		77,260			61,050
Less: Accumulated amortization		(18,693	)		(11,298	)
Tenant relationships, net		58,567			49,752
Leasing commissions		33,107			23,376
Less: Accumulated amortization		(9,520	)		(5,984	)
Leasing commissions, net		23,587			17,392
Total deferred leasing intangibles, net	$	214,967		$	187,555

Schedule of deferred leasing intangibles included in total liabilities

Deferred leasing intangibles included in total liabilities consisted of the following (in thousands):

	December 31, 2013			December 31, 2012
Below market leases	$	11,434		$	9,878
Less: Accumulated amortization		(4,520	)		(3,007	)
Total deferred leasing intangibles, net	$	6,914		$	6,871

Schedule of amortization related to deferred leasing intangibles over the next five years

Amortization related to deferred leasing intangibles over the next five years is as follows (in thousands):

	Estimated Net Amortization of In-Place Leases, Leasing Commissions and Tenant Relationships		Net Decrease to Rental Income Related to Above and Below Market Leases
2014	$	41,754	$	5,980
2015		33,004		6,201
2016		26,818		5,600
2017		21,011		4,240
2018		15,217		3,256

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Debt (Tables)

12 Months Ended

Dec. 31, 2013

Debt

Summary of the mortgage notes payable, unsecured term loans and credit facility

The following table sets forth a summary of the Company's outstanding indebtedness, including mortgage notes payable and borrowings under the Company's Unsecured Term Loans and Unsecured Credit Facility as of December 31, 2013 and December 31, 2012 (dollars in thousands):

Loan	Interest Rate(1)		Principal outstanding as of December 31, 2013		Principal outstanding as of December 31, 2012		Current Maturity
Sun Life(2)		6.05%	$	3,817	$	4,079		Jun-1-2016
Webster Bank(3)		4.22%		5,834		5,984		Aug-4-2016
Bank of America Unsecured Credit Facility(4)		LIBOR + 1.45%		80,500		99,300		Sept-10-2016
Union Fidelity(5)		5.81%		6,551		6,898		Apr-30-2017
Webster Bank(6)		3.66%		3,121		3,203		May-29-2017
Webster Bank(7)		3.64%		3,360		3,450		May-31-2017
Bank of America Unsecured Term Loan(8)		LIBOR + 1.40%		150,000		150,000		Sept-10-2017
CIGNA-1 Facility(9)		6.50%		58,874		59,645		Feb-1-2018
CIGNA-2 Facility(10)		5.75%		59,990		60,863		Feb-1-2018
CIGNA-3 Facility(11)		5.88%		16,879		17,097		Oct-1-2019
Wells Fargo Unsecured Term Loan(12)		LIBOR + 2.15%		100,000		—		Feb-14-2020
Wells Fargo CMBS Loan(13)		4.31%		67,165		68,696		Dec-1-2022
			$	556,091	$	479,215

(1)

Current interest rate as of December 31, 2013. At December 31, 2013 and December 31, 2012, the one-month LIBOR rate was 0.1677% and 0.2087%, respectively.

(2)

This loan with Sun Life Assurance Company of Canada (U.S.) ("Sun Life") was assumed on October 14, 2011 in connection with the acquisition of the building located in Gahanna, OH. The property is collateral for this loan. The principal outstanding includes an unamortized fair market value premium of $0.2 million and $0.2 million as of December 31, 2013 and December 31, 2012, respectively.

(3)

This loan with Webster Bank, National Association ("Webster Bank") was entered into on August 4, 2011 in connection with the acquisition of the building located in Norton, MA. The property is collateral for this loan.

(4)

The spread over LIBOR for this Bank of America, N.A. ("Bank of America") unsecured revolving credit facility ("Unsecured Credit Facility") is based on the Company's consolidated leverage. The spread was 1.45% and 1.65% as of December 31, 2013 and December 31, 2012, respectively. The Company paid unused fees of $0.6 million and $0.1 million for the years ended December 31, 2013 and December 31, 2012, respectively. The borrowing capacity as of December 31, 2013 was $119.3 million, assuming current leverage levels.

(5)

This loan with Union Fidelity Life Insurance Co. ("Union Fidelity") was assumed on July 28, 2011 in connection with the acquisition of the St. Louis, MO building. The property is collateral for this loan. The principal outstanding includes an unamortized fair market value premium of $0.1 million and $0.2 million as of December 31, 2013 and December 31, 2012, respectively.

(6)

This loan with Webster Bank was entered into on May 29, 2012 in connection with the acquisition of the building located in Portland, ME. The property is collateral for this loan.

(7)

This loan with Webster Bank was entered into on May 31, 2012 in connection with the acquisition of the building located in East Windsor, CT. The property is collateral for this loan.

(8)

This Bank of America unsecured term loan ("Bank of America Unsecured Term Loan") was entered into on September 10, 2012 and subsequently amended on October 7, 2013. The spread over LIBOR is based on the Company's consolidated leverage ratio. The spread was 1.40% and 1.65% as of December 31, 2013 and December 31, 2012, respectively. The Company swapped the one-month LIBOR for a fixed rate for $100.0 million of the $150.0 million outstanding on the Bank of America Unsecured Term Loan. The net settlements of the swaps commenced on the effective date of the swaps, October 10, 2012 (see Note 6 for further details). There was no remaining borrowing capacity as of December 31, 2013.

(9)

This Connecticut General Life Insurance Company ("CIGNA") credit facility originally was entered into in July 2010 (the "CIGNA-1 Facility"), which loan has various buildings serving as collateral and has no remaining borrowing capacity as of December 31, 2013.

(10)

This CIGNA credit facility originally was entered into in October 2010 (the "CIGNA-2 Facility"), which loan has various buildings serving as collateral and has a remaining borrowing capacity of approximately $2.9 million as of December 31, 2013, subject to customary terms and conditions, including underwriting.

(11)

This CIGNA credit facility originally was entered into on July 8, 2011 ("CIGNA-3 Facility"), which loan has various buildings serving as collateral. The CIGNA-3 Facility and has a remaining borrowing capacity of approximately $47.9 million as of December 31, 2013, subject to customary terms and conditions, including underwriting.

(12)

This Wells Fargo Bank, National Association ("Wells Fargo") unsecured term loan ("Wells Fargo Unsecured Term Loan") was entered into on February 14, 2013. The spread over LIBOR is based on the Company's consolidated leverage. The spread was 2.15% as of December 31, 2013. As of December 31, 2013, the Company swapped one-month LIBOR for a fixed rate on $125.0 million of the $150.0 million capacity on the unsecured term loan (see Note 6 for further details). The borrowing capacity as of December 31, 2013 was $50.0 million, assuming current leverage levels, and was drawn down by the Company on January 30, 2014.

(13)

This Wells Fargo loan ("CMBS Loan") was entered into on November 8, 2012 and is a non-recourse loan with 28 buildings serving as collateral.

Schedule of amended terms of the Unsecured Credit Facility and the Bank of America Unsecured Term Loan

	Original Terms	Amended Terms
Applicable Rates	Unsecured Credit Facility and Unsecured Term Loan	Unsecured Credit Facility	Unsecured Term Loan
Eurodollar Rate(1):	one month-LIBOR + 165.0 bps - 225.0 bps	one month-LIBOR + 145.0 bps - 205.0 bps	one month-LIBOR + 140.0 bps - 200.0 bps
Base Rate(1):	Base rate + 65.0 bps - 125.0 bps	Base rate + 45.0 bps - 105.0 bps	Base rate + 40.0 bps - 100.0 bps
Unused Fees:	<50%, 35.0 bps; > 50%, 25.0 bps	<50%, 25.0 bps; > 50%, 20.0 bps	—

(1)

The spread over the applicable rate is based on the Company's consolidated leverage ratio.

Schedule of aggregate carrying value of the debt and the corresponding estimate of fair value

The following table presents the aggregate carrying value of the Company's debt and the corresponding estimate of fair value as of December 31, 2013 and December 31, 2012 (in thousands):

	December 31, 2013				December 31, 2012
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Mortgage notes payable	$	225,591	$	228,996	$	229,915	$	242,175
Unsecured Credit Facility	$	80,500	$	80,500	$	99,300	$	99,300
Bank of America Unsecured Term Loan	$	150,000	$	148,781	$	150,000	$	150,000
Wells Fargo Unsecured Term Loan	$	100,000	$	97,302	$	—	$	—

Schedule of aggregate future principal payments of debt

The following table reflects the Company's aggregate future principal payments of the Company's debt at December 31, 2013 (dollars in thousands):

2014	$	4,447
2015		4,688
2016		93,777
2017		165,506
2018		113,377
Thereafter		174,008
Total aggregate principal payments	$	555,803
Unamortized balance of historical fair value adjustments		288
Total carrying value of debt	$	556,091

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Organization and Description of Business

12 Months Ended

Dec. 31, 2013

Organization and Description of Business

Organization and Description of Business

1. Organization and Description of Business

        STAG Industrial, Inc. (the "Company") is a fully-integrated, full-service real estate company focused on the acquisition, ownership and management of single-tenant industrial properties throughout the United States. The Company was formed as a Maryland corporation on July 21, 2010 and elected to be taxed as a real estate investment trust ("REIT") under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the "Code") commencing with its 2011 tax year. The Company is structured as an umbrella partnership REIT, commonly called an UPREIT, and owns substantially all of its assets and conducts substantially all of its business through its operating partnership, STAG Industrial Operating Partnership, L.P., a Delaware limited partnership (the "Operating Partnership"). The Company intends to continue to qualify as a REIT. As of December 31, 2013 and December 31, 2012, the Company owned an 86.65% and 85.29%, respectively, limited partnership interest in the Operating Partnership. As used herein, the "Company" refers to STAG Industrial, Inc. and its consolidated subsidiaries and partnerships except where context otherwise requires.

        As of December 31, 2013, the Company owned 209 buildings in 34 states with approximately 38.1 million rentable square feet (square feet unaudited herein and throughout Notes), consisting of 142 warehouse/distribution buildings, 47 light manufacturing buildings and 20 flex/office buildings. The Company also owned one vacant land parcel adjacent to one of the Company's buildings. The Company's properties were 95.6% leased to 191 tenants as of December 31, 2013.

        The Company's "predecessor" for accounting purposes is STAG Predecessor Group (or "Predecessor"), which is not a legal entity, but a collection of the real estate entities that were owned by STAG Investments III, LLC prior to the Company's initial public offering in April 2011 (the "IPO"). The financial information contained in this report that relates to the time periods on or prior to April 19, 2011 is the Predecessor's financial information; the financial information contained in this report for any time period on or after April 20, 2011 is the Company's financial information. The Company did not have any operating activity before April 20, 2011 and, as a result of the Company's IPO and related Formation Transactions (as defined below), is substantially different from STAG Predecessor Group.

        On April 20, 2011, concurrent with the IPO, the members of limited liability companies affiliated with the Company (collectively, the "Participants") that held direct or indirect interests in their real estate properties elected to take limited partnership units in the Operating Partnership ("Common Units") in exchange for the contribution of their properties to the Company.

        On April 20, 2011, in connection with the IPO, the following formation transactions ("Formation Transactions") were completed:

• •

  The Company issued 13,750,000 shares of its common stock for $13.00 per share.

  •

  The Company acquired certain assets and related debt of STAG Predecessor Group and of the Participants. In exchange for such assets and related debt, STAG Predecessor Group and the Participants were issued a total of 7,590,000 Common Units of the Operating Partnership, with an aggregate value of approximately $98.7 million.

  •

  The Company closed a loan agreement for a secured corporate revolving credit facility (the "Credit Facility") of up to $100 million with Bank of America, N.A. as administrative agent and Merrill Lynch, Pierce, Fenner & Smith Incorporated as lead arranger.

• •

  The net proceeds of the IPO, together with borrowings in the amount of approximately $11.0 million under the Credit Facility, repaid approximately $164.7 million in certain outstanding indebtedness (including $2.5 million of direct costs associated with the obtaining and retiring of indebtedness and the termination of interest rate swaps) and $0.3 million to pay transfer taxes and other fees.

        At the time of the Formation Transactions, there were three vacant properties owned by STAG Investments III, LLC ("Fund III") and not contributed to the Company in the Formation Transactions (the "Option Properties"). Upon approval of the Company's independent directors, the Company had the right to acquire any of the Option Properties individually for a period of up to three months after notification that the property has stabilized, defined as 85% or greater occupancy pursuant to leases at least two years in remaining duration. The right to acquire any of the Option Properties would have expired 5 years from the date of the Formation Transactions. During the years ended December 31, 2013 and December 31, 2012, Fund III sold the Option Properties to independent buyers. As of December 31, 2013, there were no remaining Option Properties owned by Fund III.

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Use of Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2013

Use of Derivative Financial Instruments

Schedule of swaps designated as cash flow hedges of interest rate risk collectively referred to as Unsecured Term Loan Swaps

The following table details the Company's outstanding interest rate swaps as of December 31, 2013 (collectively, the "Unsecured Term Loan Swaps") (in thousands):

Interest Rate Derivative	Trade Date	Notional Amount			Fixed Interest Rate			Variable Interest Rate	Maturity Date
Interest rate swap	Sept-14-2012	$	10,000	(1)		0.7945	%	One-month LIBOR	September 10, 2017
Interest rate swap	Sept-14-2012	$	10,000	(1)		0.7945	%	One-month LIBOR	September 10, 2017
Interest rate swap	Sept-14-2012	$	10,000	(1)		0.7945	%	One-month LIBOR	September 10, 2017
Interest rate swap	Sept-14-2012	$	10,000	(1)		0.7945	%	One-month LIBOR	September 10, 2017
Interest rate swap	Sept-14-2012	$	10,000	(1)		0.7975	%	One-month LIBOR	September 10, 2017
Interest rate swap	Sept-20-2012	$	25,000	(1)		0.7525	%	One-month LIBOR	September 10, 2017
Interest rate swap	Sept-24-2012	$	25,000	(1)		0.727	%	One-month LIBOR	September 10, 2017
Interest rate swap	March-1-2013	$	25,000	(2)		1.33	%	One-month LIBOR	February 14, 2020
Interest rate swap	June-13-2013	$	25,000	(2)		1.703	%	One-month LIBOR	February 14, 2020
Interest rate swap	June-13-2013	$	50,000	(2)		1.681	%	One-month LIBOR	February 14, 2020
Interest rate swap	Sept-30-2013	$	25,000	(2)		1.9925	%	One-month LIBOR	February 14, 2020

(1)

Fixes the interest rate of the Bank of America Unsecured Term Loan

(2)

Fixes the interest rate of the Wells Fargo Unsecured Term Loan

Summary of the fair value of interest rate swap outstanding

The fair value of the interest rate swaps outstanding as of December 31, 2013 and December 31, 2012 was as follows (in thousands):

	Balance Sheet Location(1)	Notional Amount December 31, 2013		Fair Value December 31, 2013		Notional Amount December 31, 2012		Fair Value December 31, 2012
Unsecured Term Loan Swaps	Interest Rate Swaps-Asset (Liability)	$	225,000	$	3,924	$	100,000	$	(480	)

(1)

The individual interest rate swaps' assets and liabilities are not netted on the accompanying Consolidated Balance Sheets.

Schedule of location in the financial statements of the gain (loss) recognized on interest rate swaps designated as cash flow hedges

The table below details the location in the financial statements of the gain or loss recognized on interest rate swaps designated as cash flow hedges for the years ended December 31, 2013 and 2012, respectively (in thousands):

	STAG Industrial, Inc.
	Year ended December 31, 2013		Year ended December 31, 2012
Amount of income (loss) recognized in accumulated other comprehensive income (loss) on interest rate swaps (effective portion)	$	3,032	$	(608	)
Amount of loss reclassified from accumulated other comprehensive income (loss) into income (loss) as interest expense (effective portion)	$	1,373	$	128
Amount of loss recognized in income on swaps (ineffective portion and amount excluded from effectiveness testing)	$	—	$	—

Schedule of interest rate swaps that are accounted for at fair value on a recurring basis

The following sets forth the Company's financial instruments that are accounted for at fair value on a recurring basis as of December 31, 2013 and December 31, 2012 (in thousands):

			Fair Value Measurements as of December 31, 2013 Using:
	December 31, 2013		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Assets:
Interest Rate Swaps	$	3,924	$	—	$	3,924	$	—

				Fair Value Measurements as of December 31, 2012 Using:
	December 31, 2012			Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Unobservable Inputs (Level 3)
Liabilities:
Interest Rate Swaps	$	(480	)	$	—	$	(480	)	$	—

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Summary of Significant Accounting Policies (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended		3 Months Ended
	Dec. 31, 2011	Dec. 31, 2013	Dec. 31, 2012	Apr. 19, 2011 STAG Predecessor Group
Supplemental cash flow information
Cash paid for interest	$ 11,445	$ 19,272	$ 15,044	$ 2,433
Supplemental schedule of non-cash investing and financing activities
Acquisition of tangible assets	(215,890)
Acquisition of goodwill upon formation transactions	(4,923)
Acquisition of intangible assets upon formation transactions	(83,442)
Assumption of mortgage notes payable	(201,789)
Fair market value adjustment to mortgage notes payable acquired	(675)
Assumption of related party notes payable upon formation transactions	4,466
Acquisition of intangible liabilities upon formation transactions	1,066
Acquisition of interest rate swaps upon formation transactions included in the purchase price allocation	420
Acquisition of other liabilities upon formation transactions	171
Issuance of units for acquisition of net assets upon formation transactions	95,670
Disposition of accrued lender fees upon formation transactions				4,420
Assumption of bridge loan for Option Properties upon formation transactions				(4,750)
Assumption of note payable to related party for Option Properties upon formation transactions				(727)
Assumption of interest rate swaps to related party for Option Properties upon formation transactions				(352)
Non cash investing activities included in additions of land and building improvements	(440)	(11,934)	(440)
Issuance of units for acquisitions of properties	95,670	11,499
Write-off of fully depreciated tenant improvements		1,254	576
Write-off of accumulated depreciation		1,254	576
Dividends and distributions declared but not paid	6,160	5,166	11,301
Accrued distribution upon formation transactions				$ (1,392)

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Noncontrolling Interest (Details) (USD $)	0 Months Ended				0 Months Ended	12 Months Ended					12 Months Ended
	Jun. 19, 2013 property	Jun. 15, 2012 Operating Partnership property	Dec. 31, 2013 Operating Partnership	Dec. 31, 2012 Operating Partnership	Jun. 19, 2013 Common Units property	Dec. 31, 2013 Common Units Operating Partnership	Dec. 31, 2012 Common Units Operating Partnership	Apr. 20, 2011 Common Units Operating Partnership	Dec. 31, 2013 LTIP Units Operating Partnership	Dec. 31, 2012 LTIP Units Operating Partnership	Dec. 31, 2013 LTIP Units Operating Partnership 2011 Plan
Noncontrolling interest
Units held by noncontrolling interests (in shares)						6,299,186	5,743,958		599,464	413,551
Ownership interest held by noncontrolling owners (as a percent)			13.35%	14.71%
Issue price of units (in dollars per share)								$ 13.00
Redemption right of investor to cause the Operating Partnership to redeem its units equivalent to current market value of number of shares of entity's common stock (in shares)						1
Conversion ratio of noncontrolling units						1	1				1
Noncontrolling common units converted to common stock (in shares)						2,186	1,861,831
Number of industrial properties acquired		6
Fair value of common units issued	$ 11,500,000	$ 15,789
Number of common units issued as a consideration for purchase of properties	555,758	200,000			11,500,000
Number of buildings purchased through issuance of common stock	8				8

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Rental Property:
Land	$ 134,399	$ 104,656
Buildings	871,422	654,518
Tenant improvements	36,994	34,900
Building and land improvements	36,231	22,153
Less: accumulated depreciation	(71,653)	(46,175)
Total rental property, net	1,007,393	770,052
Cash and cash equivalents	6,690	19,006
Restricted cash	6,806	5,497
Tenant accounts receivable, net	13,790	9,351
Prepaid expenses and other assets	2,594	1,556
Interest rate swaps	3,924
Deferred financing fees, net	5,467	4,704
Leasing commissions, net	3,542	1,674
Goodwill	4,923	4,923
Due from related parties	185	806
Deferred leasing intangibles, net	214,967	187,555
Total assets	1,270,281	1,005,124
Liabilities:
Mortgage notes payable	225,591	229,915
Unsecured credit facility	80,500	99,300
Unsecured term loans	250,000	150,000
Accounts payable, accrued expenses and other liabilities	18,574	12,111
Interest rate swaps		480
Tenant prepaid rent and security deposits	8,972	5,686
Dividends and distributions payable	5,166	11,301
Total liabilities	595,717	515,664
Commitments and contingencies
Equity:
Common stock, par value $0.01 per share, 100,000,000 shares authorized, 44,764,377 and 35,698,582 shares issued and outstanding at December 31, 2013 and December 31, 2012, respectively	447	357
Additional paid-in capital	577,039	419,643
Common stock dividends in excess of earnings	(116,877)	(61,024)
Accumulated other comprehensive income (loss)	3,440	(371)
Total stockholders' equity	603,049	427,605
Noncontrolling interest	71,515	61,855
Total equity	674,564	489,460
Total liabilities and equity	1,270,281	1,005,124
Series A Preferred Stock
Equity:
Preferred stock	69,000	69,000
Series B Preferred Stock
Equity:
Preferred stock	$ 70,000

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Deferred Leasing Intangibles (Details) (USD $)	12 Months Ended			3 Months Ended	9 Months Ended	12 Months Ended				3 Months Ended	9 Months Ended									9 Months Ended	12 Months Ended		3 Months Ended	9 Months Ended	12 Months Ended		3 Months Ended
	Dec. 31, 2012	Dec. 31, 2013	Jun. 11, 2012 sqft	Sep. 30, 2012 Great Bend, Kansas	Sep. 30, 2012 Great Bend, Kansas	Dec. 31, 2012 Non-recurring Level 3 inputs	Dec. 31, 2012 Non-recurring Level 3 inputs Great Bend, Kansas	Dec. 31, 2013 In-place leases	Dec. 31, 2012 In-place leases	Sep. 30, 2012 In-place leases Great Bend, Kansas	Sep. 30, 2012 In-place leases Great Bend, Kansas	Dec. 31, 2013 Above market leases	Dec. 31, 2012 Above market leases	Dec. 31, 2013 Tenant relationships	Dec. 31, 2012 Tenant relationships	Dec. 31, 2013 Leasing commissions	Dec. 31, 2012 Leasing commissions	Dec. 31, 2013 Below market leases	Dec. 31, 2012 Below market leases	Dec. 31, 2011 In-place leases, lease commissions and tenant relationships	Dec. 31, 2013 In-place leases, lease commissions and tenant relationships	Dec. 31, 2012 In-place leases, lease commissions and tenant relationships	Apr. 19, 2011 In-place leases, lease commissions and tenant relationships STAG Predecessor Group	Dec. 31, 2011 Above and below market leases	Dec. 31, 2013 Above and below market leases	Dec. 31, 2012 Above and below market leases	Apr. 19, 2011 Above and below market leases STAG Predecessor Group
Deferred leasing intangibles, assets
Gross								$ 142,518,000	$ 108,363,000			$ 57,283,000	$ 50,699,000	$ 77,260,000	$ 61,050,000	$ 33,107,000	$ 23,376,000
Less: Accumulated amortization								(49,756,000)	(28,289,000)			(17,232,000)	(10,362,000)	(18,693,000)	(11,298,000)	(9,520,000)	(5,984,000)
Net	187,555,000	214,967,000						92,762,000	80,074,000			40,051,000	40,337,000	58,567,000	49,752,000	23,587,000	17,392,000
Deferred leasing intangibles, liabilities
Gross																		11,434,000	9,878,000
Less: Accumulated amortization																		(4,520,000)	(3,007,000)
Net																		6,914,000	6,871,000
Amortization expense																				12,900,000	42,500,000	25,000,000	700,000
Net increase (decrease) to rental revenues related to net amortization of above (below) market leases																								(2,800,000)	(6,500,000)	(4,800,000)	2,000
Estimated Net Amortization of In-Place Leases, Leasing Commissions and Tenant Relationships
2014																					41,754,000
2015																					33,004,000
2016																					26,818,000
2017																					21,011,000
2018																					15,217,000
Net Decrease to Rental Income Related to Above and Below Market Leases
2014																									5,980,000
2015																									6,201,000
2016																									5,600,000
2017																									4,240,000
2018																									3,256,000
Net rentable area before exercise of option by tenant to downsize the space (in square feet)			190,000
Net rentable area after exercise of option by tenant to downsize the space (in square feet)			60,000
Discount rate at which cash flows are discounted (as a percent)	11.40%
Fair value of lease intangibles						400,000
Non-cash impairment loss	622,000					600,000
Non-cash impairment loss				$ 3,900,000	$ 3,900,000		$ 700,000			$ 700,000	$ 700,000

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Consolidated and Combined Statements of Equity (USD $) In Thousands, except Share data, unless otherwise specified	Total	Series A Preferred Stock	Series B Preferred Stock	Total Stockholders' Equity	Total Stockholders' Equity Series A Preferred Stock	Total Stockholders' Equity Series B Preferred Stock	Preferred Stock	Preferred Stock Series A Preferred Stock	Preferred Stock Series B Preferred Stock	Common Shares	Additional Paid-in Capital	Common Stock Dividends in excess of Earnings	Predecessor's Owner's Deficit	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interest - Unit holders in Operating Partnership	STAG Predecessor Group	STAG Predecessor Group Total Stockholders' Equity	STAG Predecessor Group Predecessor's Owner's Deficit
Balance at Dec. 31, 2010																$ (8,336)	$ (8,336)	$ (8,336)
Increase (Decrease) in Stockholders' Equity
Contributions																4,420	4,420	4,420
Distributions																(9,900)	(9,900)	(9,900)
Net income (loss)																(229)	(229)	(229)
Balance at Apr. 19, 2011	(14,043)			(14,043)							2		(14,045)			(14,045)	(14,045)	(14,045)
Balance (in shares) at Apr. 19, 2011										110
Balance at Apr. 20, 2011
Increase (Decrease) in Stockholders' Equity
Proceeds from sales of common stock	205,563			205,563						158	205,405
Proceeds from sales of common stock (in shares)										15,812,500
Issuance of preferred stock		69,000			69,000			69,000
Offering costs	(19,537)			(19,537)							(19,537)
Issuance of restricted stock, net										1	(1)
Issuance of restricted stock, net (in shares)										80,809
Issuance of common stock (in shares)										8,251
Dividends and distributions, net	(18,208)			(12,554)			(1,018)					(11,536)			(5,654)
Non-cash compensation	693			342							342				351
Issuance of units for acquisition of properties	95,670														95,670
Rebalancing of noncontrolling interest				(6,290)							(6,290)				6,290
Redemption of initial capitalization of STAG Industrial, Inc.	(2)			(2)							(2)
Redemption of initial capitalization of STAG Industrial, Inc. (in shares)										(110)
Exchange of owners' equity for units				14,045									14,045		(14,045)
Net income (loss)	(9,227)			(5,831)			1,018					(6,849)			(3,396)
Balance at Dec. 31, 2011	309,909			230,693			69,000			159	179,919	(18,385)			79,216
Balance (in shares) at Dec. 31, 2011										15,901,560
Increase (Decrease) in Stockholders' Equity
Proceeds from sales of common stock	242,947			242,947						179	242,768
Proceeds from sales of common stock (in shares)										17,835,500
Offering costs	(11,136)			(11,136)							(11,136)
Issuance of restricted stock, net										1	(1)
Issuance of restricted stock, net (in shares)										87,025
Issuance of common stock (in shares)										12,666
Dividends and distributions, net	(43,747)			(36,160)			(6,210)					(29,950)			(7,587)
Non-cash compensation	1,941			993							993				948
Issuance of units for acquisition fee	225														225
Conversion of operating partnership units to common stock				18,615						18	18,597				(18,615)
Conversion of operating partnership units to common stock (in shares)										1,861,831
Rebalancing of noncontrolling interest				(11,497)							(11,497)				11,497
Other comprehensive income (loss)	(480)			(371)										(371)	(109)
Net income (loss)	(10,199)			(6,479)			6,210					(12,689)			(3,720)
Balance at Dec. 31, 2012	489,460			427,605			69,000			357	419,643	(61,024)		(371)	61,855
Balance (in shares) at Dec. 31, 2012										35,698,582
Increase (Decrease) in Stockholders' Equity
Proceeds from sales of common stock	169,747			169,747						89	169,658
Proceeds from sales of common stock (in shares)										8,956,844
Issuance of preferred stock			70,000			70,000			70,000
Offering costs	(8,713)			(8,713)							(8,713)
Issuance of restricted stock, net										1	(1)
Issuance of restricted stock, net (in shares)										96,287
Issuance of common stock (in shares)										10,478
Dividends and distributions, net	(69,705)			(61,375)			(9,495)					(51,880)			(8,330)
Non-cash compensation	2,969			1,360							1,360				1,609
Issuance of units for acquisition of properties	11,499														11,499
Conversion of operating partnership units to common stock				23							23				(23)
Conversion of operating partnership units to common stock (in shares)										2,186
Rebalancing of noncontrolling interest				(4,931)							(4,931)				4,931
Other comprehensive income (loss)	4,405			3,811										3,811	594
Net income (loss)	4,902			5,522			9,495					(3,973)			(620)
Balance at Dec. 31, 2013	$ 674,564			$ 603,049			$ 139,000			$ 447	$ 577,039	$ (116,877)		$ 3,440	$ 71,515
Balance (in shares) at Dec. 31, 2013										44,764,377

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Commitments and Contingencies (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended		0 Months Ended	12 Months Ended	0 Months Ended	12 Months Ended	5 Months Ended
	Apr. 19, 2011	Dec. 31, 2011	Dec. 31, 2013 item	Dec. 31, 2012	Oct. 09, 2012 Non-cancelable operating ground lease agreement from May 31, 1994 to April 30, 2034 item	Dec. 31, 2013 Non-cancelable operating ground lease agreement from May 31, 1994 to April 30, 2034	Oct. 09, 2012 Non-cancelable operating ground lease agreement from October 28, 1996 to December 31, 2038 item	Dec. 31, 2013 Non-cancelable operating ground lease agreement from October 28, 1996 to December 31, 2038	Dec. 31, 2013 Non-cancelable operating ground lease agreement from July 01, 2013 to June 30, 2033
Ground and Operating Lease Agreements
Number of buildings acquired that are subject to non-cancelable operating ground lease agreements					2
Number of non-cancelable operating ground lease agreements					1		1
Operating lease term					40 years
Ground rent expense	$ 0	$ 100	$ 400	$ 200	$ 33	$ 100			$ 20
Number of separate ground leases having option to extend period of lease one			1
Number of separate ground leases having option to extend period of lease two			1
Period of rent adjustments on the basis of increases in the Consumer Price Index					5 years		5 years
Estimated ground rent expense, which is the responsibility of the tenant							33	100
Future minimum rental payments
2014			1,134
2015			1,433
2016			1,201
2017			1,029
2018			1,134
Thereafter			$ 9,246

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Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2013

Earnings Per Share

Schedule of computation of basic and diluted earnings per common share

The following tables set forth the computation of basic and diluted earnings per common share for the years ended December 31, 2013, December 31, 2012 and the period from April 20, 2011 to December 31, 2011, respectively (in thousands, except share data).

	Year ended December 31, 2013
Numerator
Net income from continuing operations	$	106
Less: preferred stock dividends		9,495
Less: amount allocable to unvested restricted stockholders		262
Less: noncontrolling interest after preferred stock dividends allocable to continuing operations		(1,267	)
Loss from continuing operations available to common stockholders	$	(8,384	)
Income attributable to discontinued operations	$	4,796
Less: noncontrolling interest allocable to discontinued operations		647
Income from discontinued operations attributable to common stockholders	$	4,149
Denominator
Weighted average common shares outstanding—basic and diluted		42,364,125
Loss from continuing operations attributable to common stockholders	$	(0.20	)
Income from discontinued operations attributable to common stockholders		0.10
Loss per share—basic and diluted	$	(0.10	)

	Year ended December 31, 2012
Numerator
Net loss from continuing operations	$	(7,817	)
Less: preferred stock dividends		6,210
Less: amount allocable to unvested restricted stockholders		122
Less: noncontrolling interest after preferred stock dividends allocable to continuing operations		(3,180	)
Loss from continuing operations available to common stockholders	$	(10,969	)
Loss attributable to discontinued operations	$	(2,382	)
Less: noncontrolling interest allocable to discontinued operations		(540	)
Loss from discontinued operations attributable to common stockholders	$	(1,842	)
Denominator
Weighted average common shares outstanding—basic and diluted		25,046,664
Loss from continuing operations attributable to common stockholders	$	(0.44	)
Loss from discontinued operations attributable to common stockholders		(0.07	)
Loss per share—basic and diluted	$	(0.51	)

	Period from April 20, 2011 to December 31, 2011
Numerator
Net loss from continuing operations	$	(10,510	)
Less: preferred stock dividends		1,018
Less: Amount allocable to unvested restricted stockholders		—
Less: noncontrolling interest after preferred stock dividends allocable to continuing operations		(3,821	)
Loss from continuing operations available to common stockholders	$	(7,707	)
Income attributable to discontinued operations	$	1,283
Less: noncontrolling interest allocable to discontinued operations		425
Income from discontinued operations available to common stockholders	$	858
Denominator
Weighted average common shares outstanding—basic and diluted		15,630,910
Loss from continuing operations attributable to common stockholders	$	(0.49	)
Income from discontinued operations attributable to common stockholders		0.05
Loss per common share—basic and diluted	$	(0.44	)

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Schedule 2 - Valuation and Qualifying Accounts (Details) (Allowance for Doubtful Receivables and Accrued Rent Reserves, USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Allowance for Doubtful Receivables and Accrued Rent Reserves
Valuation and Qualifying Accounts
Beginning of Period		$ 931
Costs and Expenses	19	(105)
Amounts Written Off		(826)
Balance at End of Period	$ 19

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Related-Party Transactions

12 Months Ended

Dec. 31, 2013

Related-Party Transactions

Related-Party Transactions

15. Related-Party Transactions

        On June 6, 2007, STAG Predecessor Group entered into a loan guarantee agreement with an affiliate of NED Credit Inc. The loan guarantee was for the Anglo Irish bridge loan dated August 11, 2006 and amended on June 6, 2007, which was paid in full at the IPO. STAG Predecessor Group agreed to pay the guarantor an annual fee for the guarantor's provision of the guaranty in an amount equal to nine percent (9.0%) per annum of the outstanding balance of the bridge loan. STAG Predecessor Group expensed $0.9 million in such guarantee fees, which are included in interest expense on the Consolidated and Combined Statements of Operations, for the period January 1, 2011 to April 19, 2011. Subsequent to the Formation Transactions, the Company was not responsible for bridge loan guarantee fees.

        Prior to the IPO, STAG Predecessor Group was obligated to pay asset management fees to an affiliate, STAG Capital Partners, LLC (the "Management Company") in consideration of the Management Company's agreement that it provide reasonable and customary advisory and asset management services to STAG Predecessor Group. STAG Predecessor Group expensed $0.2 million in such asset management fees for the period January 1, 2011 to April 19, 2011. Subsequent to the Formation Transactions, the Company no longer incurs asset management fees to the Management Company.

        As part of the Formation Transactions, the Company formed a new management company, STAG Industrial Management, LLC (the "Manager"), which is a subsidiary of the Company. The Manager is performing certain asset management services for STAG Investments II, LLC ("Fund II"), a private, fully-invested fund that is an affiliate of the Company and owned 44 buildings with approximately 7.4 million rentable square feet as of December 31, 2013. The Manager is paid an annual asset management fee based on the equity investment in the Fund assets, which is 1.25% of the equity investment. In June 2013, Fund II and the Company amended the Service Agreement to exclude disposition services from the asset management services to be performed by the Company and results in a concomitant reduction in the asset management fee. The Company recognized asset management fee income of $0.8 million, $1.1 million and $0.9 million for the years ended December 31, 2013, December 31, 2012 and for the period from April 20, 2011 to December 31, 2011, respectively, which is included in other income on the accompanying Consolidated Statements of Operations. As of December 31, 2013 and December 31, 2012, the Company had a receivable in the amount of $0.2 million and $0.5 million related to the asset management fee income included within due from related parties on the accompanying Consolidated Balance Sheets, which was subsequently received on February 7, 2014 and January 17, 2013, respectively.

        While most of the real estate assets of Fund III comprise the assets of the STAG Predecessor Group, Fund III retained ownership of the Option Properties. The Manager had entered into a services agreement with Fund III pursuant to which it would manage the Option Properties for an annual fee of $30 thousand per property, and would provide the limited administrative services (including preparation of reports for the Fund III lender and investors, bookkeeping, tax and accounting services) that Fund III will require, for an annual fee of $20 thousand. As the last remaining Option Property was sold in 2013, the Manager will only receive the annual fee of $20 thousand until Fund III's liquidation.

        STAG Investments IV, LLC ("Fund IV"), as part of the STAG Contribution Group, contributed all of its real estate assets to the Company. The Manager had entered into a services agreement with Fund IV pursuant to which it would provide the limited administrative services (including preparation of reports for the Fund IV investors, bookkeeping, tax and accounting services) that Fund IV would require until its liquidation for an annual fee of $20 thousand. Fund IV was liquidated on September 10, 2012 and, as a result, the Manager no longer receives an annual fee.

        On October 9, 2012, the Company acquired 31 industrial properties representing 4.3 million square feet for a purchase price of $127.6 million from STAG Investments Holdings II, LLC, a wholly owned subsidiary of Fund II, which are related parties of the Company through common management. A special committee of independent members of the Board was formed to address conflicts arising from the common management. The special committee engaged its independent counsel and broker to manage the acquisition. On October 31, 2012, the Company acquired one additional industrial property from the Fund for a purchase price of $5.0 million. On April 5, 2013, the Company acquired an additional industrial property from the Fund for the purchase price of $6.2 million. The acquisitions were funded using draws from the Unsecured Credit Facility. The Manager and its predecessor, the Management Company, served as the asset manager of Fund II for all periods presented. At December 31, 2012, the due from related parties on the accompanying Consolidated Balance Sheets included $0.2 million due from the Fund related to a true-up of final settlement statement pro-rations, and the amount was subsequently received on February 27, 2013.

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies

Schedule of future minimum rental payments under the terms of the non-cancelable ground leases and operating leases

Future minimum rental payments under the terms of the fixed non-cancelable ground leases and operating leases under which the Company is the lessee as of December 31, 2013 are as follows (in thousands):

2014(1)	$	1,134
2015(1)		1,433
2016(1)		1,201
2017(1)		1,029
2018(1)		1,134
Thereafter(1)		9,246

(1)

Future minimum rent payments do not include estimates of CPI rent changes required by the lease agreements. Therefore, actual minimum rental payments may differ than those presented.

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Subsequent Events

12 Months Ended

Dec. 31, 2013

Subsequent Events

Subsequent Events

17. Subsequent Events

        GAAP requires an entity to disclose events that occur after the balance sheet date but before financial statements are issued or are available to be issued ("subsequent events") as well as the date through which an entity has evaluated subsequent events. There are two types of subsequent events. The first type consists of events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements ("recognized subsequent events"). No significant recognized subsequent events were noted. The second type consists of events that provide evidence about conditions that did not exist at the date of the balance sheet but arose subsequent to that date ("non-recognized subsequent events").

        The following non-recognized subsequent events are noted:

        On January 1, 2014, Virgis W. Colbert's appointment to the board of directors became effective.

        On January 2, 2014, the Company granted a total of 203,691 LTIP units to certain senior executive officers, 20,733 LTIP units to non-employee, independent directors, and 103,149 restricted shares of common stock to certain employees of the Company pursuant to the 2011 Plan.

        On February 7, 2014, Gregory W. Sullivan, the Company's Chief Financial Officer, notified the Company that he was not renewing his employment contract at it expiration on April 20, 2014 and that he resigned from the Company effective April 21, 2014. The Company intends to engage Mr. Sullivan as a senior financial advisor for one year to ensure a smooth transition of the chief financial officer.

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Consolidated and Combined Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended		3 Months Ended
	Dec. 31, 2011	Dec. 31, 2013	Dec. 31, 2012	Apr. 19, 2011 STAG Predecessor Group
Cash flows from operating activities:
Net income (loss)	$ (9,227)	$ 4,902	$ (10,199)	$ (229)
Adjustment to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	22,794	70,597	43,473	2,459
Loss on impairment			4,563
Non-cash portion of interest expense	737	1,081	957	31
Intangible amortization in rental income, net	2,776	6,544	4,837	(2)
Straight-line rent adjustments, net	(1,036)	(2,941)	(2,796)	(16)
Gain on interest rate swaps	(2,179)		(215)	(762)
Loss on extinguishment of debt			929
Gain on sales of real estate	(329)	(5,305)	(222)
Non-cash compensation expense	693	2,970	1,936
Issuance of units for acquisition fee			225
Change in assets and liabilities:
Tenant accounts receivable, net	(695)	(1,515)	(1,497)	88
Leasing commissions, net	(877)	(2,456)	(1,020)	(24)
Restricted cash	(124)	(201)	(137)
Prepaid expenses and other assets	(207)	(939)	(799)	(87)
Accounts payable, accrued expenses and other liabilities	1,503	6,043	6,174	106
Tenant prepaid rent and security deposits	783	3,286	2,208	169
Due from related parties		621	(406)	(141)
Due to related parties	54			767
Total adjustments	23,893	77,785	58,210	2,588
Net cash provided by operating activities	14,666	82,687	48,011	2,359
Cash flows from investing activities:
Additions of land and building improvements	(80,191)	(261,208)	(325,820)	(39)
Proceeds from sales of rental property, net	4,507	14,181	7,221
Restricted cash	(1,561)	(1,108)	1,251	(542)
Cash paid for contributed assets, net	(2,159)
Cash paid for deal deposits, net	(130)	(150)	550
Additions to lease intangibles	(34,924)	(76,946)	(100,405)
Net cash used in investing activities	(114,458)	(325,231)	(417,203)	(581)
Cash flows from financing activities:
Proceeds from the issuance of common stock at initial public offering	205,563
Offering cost related to issuance of common stock	(17,042)
Redemption of initial capitalization of STAG Industrial, Inc. shares	(2)
Offering costs related to issuance of preferred stock	(2,495)
Proceeds from notes payable to related parties				789
Repayment of notes payable to related parties	(10,366)
Proceeds from credit facility	34,500		124,300
Repayment of credit facility	(34,500)		(124,300)
Proceeds from unsecured credit facility		158,500	215,300
Repayment of unsecured credit facility		(177,300)	(116,000)
Proceeds from unsecured term loans		100,000	150,000
Proceeds from mortgage notes payable	48,339		78,067
Repayment of mortgage notes payable	(160,645)	(4,219)	(144,753)	(1,180)
Termination of swap contracts	(894)
Payment of loan fees and costs	(3,397)	(1,949)	(4,119)
Dividends and distributions	(12,048)	(75,838)	(38,606)	(2,679)
Proceeds from sales of common stock		169,747	242,947
Offering costs		(8,713)	(11,136)
Net cash provided by (used in) financing activities	116,013	230,228	371,700	(3,070)
Increase (decrease) in cash and cash equivalents	16,221	(12,316)	2,508	(1,292)
Cash and cash equivalents-beginning of period	277	19,006	16,498	1,567
Cash and cash equivalents-end of period	$ 16,498	$ 6,690	$ 19,006	$ 275

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Consolidated Balance Sheets (Parenthetical) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013 Series A Preferred Stock	Dec. 31, 2012 Series A Preferred Stock	Dec. 31, 2013 Series B Preferred Stock	Dec. 31, 2012 Series B Preferred Stock
Preferred stock, par value (in dollars per share)			$ 0.01	$ 0.01	$ 0.01	$ 0.01
Preferred stock, shares authorized			10,000,000	10,000,000	10,000,000	10,000,000
Preferred stock, liquidation preference (in dollars per share)			$ 25.00	$ 25.00	$ 25.00	$ 25.00
Preferred stock, shares issued			2,760,000	2,760,000	2,800,000
Preferred stock, shares outstanding			2,760,000	2,760,000	2,800,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	44,764,377	35,698,582
Common stock, shares outstanding	44,764,377	35,698,582

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Earnings Per Share

12 Months Ended

Dec. 31, 2013

Earnings Per Share

Earnings Per Share

10. Earnings Per Share

        A participating security is defined by GAAP as an unvested stock-based payment award containing non-forfeitable rights to dividends and must be included in the computation of earnings per share pursuant to the two-class method. Unvested restricted stock awards are considered participating securities as these stock-based awards contain non-forfeitable rights to dividends irrespective of whether the awards ultimately vest or expire. During the years ended December 31, 2013, December 31, 2012 and the period April 20, 2011 to December 31, 2011, there were 218,934, 155,488 and 80,809, respectively, unvested shares of restricted stock on a weighted average basis that were considered participating securities, which were not dilutive. For purposes of calculating basic and diluted earnings per share, awards under the 2011 Outperformance Program (the "OPP") (to be discussed in Note 14) are considered contingently issuable shares. Because the OPP awards require the Company to outperform absolute and relative return thresholds, unless such thresholds have been met by the end of the applicable reporting period, the Company excludes the awards from the basic and diluted earnings per share calculation. As of December 31, 2013 and December 31, 2012, the absolute and relative return thresholds were met; however, the OPP awards have been excluded from the diluted earnings per share calculation as they were anti-dilutive. As of December 31, 2011, the absolute and relative return thresholds were not met. In no event will the 2011 OPP awards be earned and paid out unless the absolute and relative prefomance thesholds are met on September 20, 2014

        The following tables set forth the computation of basic and diluted earnings per common share for the years ended December 31, 2013, December 31, 2012 and the period from April 20, 2011 to December 31, 2011, respectively (in thousands, except share data).

	Year ended December 31, 2013
Numerator
Net income from continuing operations	$	106
Less: preferred stock dividends		9,495
Less: amount allocable to unvested restricted stockholders		262
Less: noncontrolling interest after preferred stock dividends allocable to continuing operations		(1,267	)
Loss from continuing operations available to common stockholders	$	(8,384	)
Income attributable to discontinued operations	$	4,796
Less: noncontrolling interest allocable to discontinued operations		647
Income from discontinued operations attributable to common stockholders	$	4,149
Denominator
Weighted average common shares outstanding—basic and diluted		42,364,125
Loss from continuing operations attributable to common stockholders	$	(0.20	)
Income from discontinued operations attributable to common stockholders		0.10
Loss per share—basic and diluted	$	(0.10	)

	Year ended December 31, 2012
Numerator
Net loss from continuing operations	$	(7,817	)
Less: preferred stock dividends		6,210
Less: amount allocable to unvested restricted stockholders		122
Less: noncontrolling interest after preferred stock dividends allocable to continuing operations		(3,180	)
Loss from continuing operations available to common stockholders	$	(10,969	)
Loss attributable to discontinued operations	$	(2,382	)
Less: noncontrolling interest allocable to discontinued operations		(540	)
Loss from discontinued operations attributable to common stockholders	$	(1,842	)
Denominator
Weighted average common shares outstanding—basic and diluted		25,046,664
Loss from continuing operations attributable to common stockholders	$	(0.44	)
Loss from discontinued operations attributable to common stockholders		(0.07	)
Loss per share—basic and diluted	$	(0.51	)

	Period from April 20, 2011 to December 31, 2011
Numerator
Net loss from continuing operations	$	(10,510	)
Less: preferred stock dividends		1,018
Less: Amount allocable to unvested restricted stockholders		—
Less: noncontrolling interest after preferred stock dividends allocable to continuing operations		(3,821	)
Loss from continuing operations available to common stockholders	$	(7,707	)
Income attributable to discontinued operations	$	1,283
Less: noncontrolling interest allocable to discontinued operations		425
Income from discontinued operations available to common stockholders	$	858
Denominator
Weighted average common shares outstanding—basic and diluted		15,630,910
Loss from continuing operations attributable to common stockholders	$	(0.49	)
Income from discontinued operations attributable to common stockholders		0.05
Loss per common share—basic and diluted	$	(0.44	)

        Earnings (loss) per share are not presented for the period January 1, 2011 to April 19, 2011 as the IPO did not close until April 20, 2011.

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Document and Entity Information (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Feb. 24, 2014	Jun. 28, 2013
Document and Entity Information
Entity Registrant Name	STAG Industrial, Inc.
Entity Central Index Key	0001479094
Document Type	10-K
Document Period End Date	Dec. 31, 2013
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 836.9
Entity Common Stock, Shares Outstanding		45,101,276
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies

Commitments and Contingencies

11. Commitments and Contingencies

        The Company is subject to various legal proceedings and claims that arise in the ordinary course of business. These matters are generally covered by insurance subject to deductible requirements. Management believes that the ultimate settlement of these actions will not have a material adverse effect on the Company's financial position, results of operations or cash flows

        On April 18, 2012, the Company entered into an agreement with affiliates of Columbus Nova Real Estate Acquisition Group, Inc. ("Columbus Nova") to source sale leaseback transactions for potential acquisitions by the Company. The agreement called for various fees to be paid to Columbus Nova for its services including acquisition fees and a one-time incentive fee if certain performance thresholds are met. On June 15, 2012, the Company acquired six industrial properties for an aggregate purchase price of approximately $30.0 million directly from Columbus Nova that are subject to the one-time incentive fee. To the extent the Company has received a 10% internal rate of return on its invested equity on May 31, 2017, Columbus Nova will earn 20% of the returns exceeding the 10% internal rate of return. The returns will be calculated based on distributions from June 15, 2012 through May 31, 2017 and a hypothetical liquidation of the ending value of the properties owned at May 31, 2017 to be valued by third party appraisers. The fee, if any, will be paid in common stock or cash at the Company's discretion and subject to certain conditions. The fair value of the incentive fee will be measured at each balance sheet date and, to the extent there is value in the incentive fee, it will be recognized as a liability. The hypothetical liquidation of the ending value of the properties was determined using a discounted cash flow analysis. The estimated cash flows used are based on the Company plans for the property and views of market and economic conditions. The estimates consider items such as market capitalization rates, discount rates, current and future rental rates, estimated operating and capital expenditures, and estimated downtime. These estimates are prepared using known data at comparable Company owned properties as well market data obtained from third party sources such as real estate leasing and brokerage firms. As of December 31, 2013 and December 31, 2012, respectively, the fair value of the incentive fee was zero. The fair value was calculated using the following key Level 3 inputs: discount rate of approximately 9.5%, exit capitalization rate of 9.0%, and market rent and expense growth rates of 1% to 3%.

Ground and Operating Lease Agreements

        The Company is the lessee for five separate ground leases. The Company incurred ground rent expense of $0.4 million for the year ended December 31, 2013, $0.2 million for the year ended December 31, 2012, $0.1 million and $0 for the periods April 20, 2011 to December 31, 2011 and January 1, 2011 to April 19, 2011, respectively. One ground lease expires in December 2023 and one ground lease expires in April 2048 both with options to extend.

        On October 9, 2012, the Company acquired two adjacent buildings that are subject to one non-cancelable operating ground lease agreement which commenced on May 1, 1994 and has a forty year term expiring April 30, 2034. The ground lease provides for monthly minimum rent and future rent increases. For the year ended December 31, 2013 and the period from October 9, 2012 to December 31, 2012, the Company expensed ground lease payments under this operating lease in the amount of $0.1 million and $33 thousand, respectively. Rent adjustments are every five years on the basis of increases in the Consumer Price Index ("CPI") or fair market value pursuant to certain clauses in the lease agreement.

        On July 31, 2013, the Company acquired one building that is subject to a non-cancelable operating ground lease agreement which commenced on July 1, 2013 and is set to expire on June 30, 2033, with options to extend. The ground lease provides for monthly ground rent and future rent increases. Rent adjustments are every five years on the basis of increases in the CPI pursuant to certain clauses in the lease agreement. The Company incurred rent expense of $20 thousand for the period from July 31, 2013 to December 31, 2013. The terms of the remaining ground lease is discussed further below.

        The Company is also the lessee for three operating leases that expire in May 2014, May 2016 and March 2021, and the Company incurred rent expense of $0.5 million, $0.4 million, $0.3 million and $0 for the years ended December 31, 2013 and December 31, 2012, for the periods April 20, 2011 to December 31, 2011 and January 1, 2011 to April 19, 2011, respectively.

        Future minimum rental payments under the terms of the fixed non-cancelable ground leases and operating leases under which the Company is the lessee as of December 31, 2013 are as follows (in thousands):

2014(1)	$	1,134
2015(1)		1,433
2016(1)		1,201
2017(1)		1,029
2018(1)		1,134
Thereafter(1)		9,246

(1)

Future minimum rent payments do not include estimates of CPI rent changes required by the lease agreements. Therefore, actual minimum rental payments may differ than those presented.

        On October 9, 2012, the Company acquired one building that is subject to a non-cancelable operating ground lease agreement which commenced on October 28, 1996 and is set to expire on December 31, 2038. The ground lease provides for monthly ground rent and future rent increases. Rent adjustments are every five years on the basis of increases in the CPI pursuant to certain clauses in the lease agreement. The tenant in the building is obligated to pay directly to the land owner their obligations under their lease related to the ground lease payments assumed by the tenant. To the extent the tenant fails to make the ground lease payments, the Company would recognize the expense for the obligation. The Company estimates that the ground lease payments, which are the responsibility of the tenant, were approximately $0.1 million and $33 thousand for the year ended December 31, 2013 and the period from October 9, 2012 to December 31, 2012. As the future payments are not fixed and payment is the responsibility of the tenant, the amounts were not included in the table above.

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Consolidated and Combined Statements of Operations (USD $) In Thousands, except Share data, unless otherwise specified	9 Months Ended	12 Months Ended		3 Months Ended
	Dec. 31, 2011	Dec. 31, 2013	Dec. 31, 2012	Apr. 19, 2011 STAG Predecessor Group
Revenue
Rental income	$ 35,749	$ 116,344	$ 73,977	$ 6,489
Tenant recoveries	4,453	16,349	8,763	1,218
Other income	914	1,200	1,312
Total revenue	41,116	133,893	84,052	7,707
Expenses
Property	3,583	10,634	5,983	1,194
General and administrative	8,365	17,840	14,549	322
Real estate taxes and insurance	3,597	13,376	6,858	873
Asset management fees				162
Property acquisition costs	1,088	3,427	4,218
Depreciation and amortization	21,325	67,556	42,427	2,345
Loss on impairment			622
Other expenses	294	621	339
Total expenses	38,252	113,454	74,996	4,896
Other income (expense)
Interest income	28	13	19	1
Interest expense	(11,829)	(20,319)	(16,110)	(3,825)
Gain on interest rate swaps	2,179		215	762
Formation transaction costs	(3,674)
Offering costs	(78)	(27)	(68)
Loss on extinguishment of debt			(929)
Total other income (expense)	(13,374)	(20,333)	(16,873)	(3,062)
Net income (loss) from continuing operations	(10,510)	106	(7,817)	(251)
Discontinued operations
Income (loss) attributable to discontinued operations	954	(509)	1,337	22
Loss on impairment attributable to discontinued operations			(3,941)
Gain on sales of real estate	329	5,305	222
Total income (loss) attributable to discontinued operations	1,283	4,796	(2,382)	22
Net income (loss)	(9,227)	4,902	(10,199)	(229)
Less: loss attributable to noncontrolling interest after preferred stock dividends	(3,396)	(620)	(3,720)
Net income (loss) attributable to STAG Industrial, Inc.	(5,831)	5,522	(6,479)
Less: preferred stock dividends	1,018	9,495	6,210
Less: amount allocated to unvested restricted stockholders		262	122
Net loss attributable to common stockholders	$ (6,849)	$ (4,235)	$ (12,811)
Weighted average common shares outstanding - basic and diluted (in shares)	15,630,910	42,364,125	25,046,664
Loss per share - basic and diluted
Loss from continuing operations attributable to common stockholders (in dollars per share)	$ (0.49)	$ (0.20)	$ (0.44)
Income (loss) from discontinued operations attributable to common stockholders (in dollars per share)	$ 0.05	$ 0.10	$ (0.07)
Loss per share - basic and diluted (in dollars per share)	$ (0.44)	$ (0.10)	$ (0.51)

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Debt

12 Months Ended

Dec. 31, 2013

Debt

Debt

5. Debt

        Payments on mortgage notes are generally due in monthly installments of principal amortization and interest. Payments on the Unsecured Term Loans and the Unsecured Credit Facility (each defined below) are generally due in monthly installments of interest.

        The following table sets forth a summary of the Company's outstanding indebtedness, including mortgage notes payable and borrowings under the Company's Unsecured Term Loans and Unsecured Credit Facility as of December 31, 2013 and December 31, 2012 (dollars in thousands):

Loan	Interest Rate(1)		Principal outstanding as of December 31, 2013		Principal outstanding as of December 31, 2012		Current Maturity
Sun Life(2)		6.05%	$	3,817	$	4,079		Jun-1-2016
Webster Bank(3)		4.22%		5,834		5,984		Aug-4-2016
Bank of America Unsecured Credit Facility(4)		LIBOR + 1.45%		80,500		99,300		Sept-10-2016
Union Fidelity(5)		5.81%		6,551		6,898		Apr-30-2017
Webster Bank(6)		3.66%		3,121		3,203		May-29-2017
Webster Bank(7)		3.64%		3,360		3,450		May-31-2017
Bank of America Unsecured Term Loan(8)		LIBOR + 1.40%		150,000		150,000		Sept-10-2017
CIGNA-1 Facility(9)		6.50%		58,874		59,645		Feb-1-2018
CIGNA-2 Facility(10)		5.75%		59,990		60,863		Feb-1-2018
CIGNA-3 Facility(11)		5.88%		16,879		17,097		Oct-1-2019
Wells Fargo Unsecured Term Loan(12)		LIBOR + 2.15%		100,000		—		Feb-14-2020
Wells Fargo CMBS Loan(13)		4.31%		67,165		68,696		Dec-1-2022
			$	556,091	$	479,215

(1)

Current interest rate as of December 31, 2013. At December 31, 2013 and December 31, 2012, the one-month LIBOR rate was 0.1677% and 0.2087%, respectively.

(2)

This loan with Sun Life Assurance Company of Canada (U.S.) ("Sun Life") was assumed on October 14, 2011 in connection with the acquisition of the building located in Gahanna, OH. The property is collateral for this loan. The principal outstanding includes an unamortized fair market value premium of $0.2 million and $0.2 million as of December 31, 2013 and December 31, 2012, respectively.

(3)

This loan with Webster Bank, National Association ("Webster Bank") was entered into on August 4, 2011 in connection with the acquisition of the building located in Norton, MA. The property is collateral for this loan.

(4)

The spread over LIBOR for this Bank of America, N.A. ("Bank of America") unsecured revolving credit facility ("Unsecured Credit Facility") is based on the Company's consolidated leverage. The spread was 1.45% and 1.65% as of December 31, 2013 and December 31, 2012, respectively. The Company paid unused fees of $0.6 million and $0.1 million for the years ended December 31, 2013 and December 31, 2012, respectively. The borrowing capacity as of December 31, 2013 was $119.3 million, assuming current leverage levels.

(5)

This loan with Union Fidelity Life Insurance Co. ("Union Fidelity") was assumed on July 28, 2011 in connection with the acquisition of the St. Louis, MO building. The property is collateral for this loan. The principal outstanding includes an unamortized fair market value premium of $0.1 million and $0.2 million as of December 31, 2013 and December 31, 2012, respectively.

(6)

This loan with Webster Bank was entered into on May 29, 2012 in connection with the acquisition of the building located in Portland, ME. The property is collateral for this loan.

(7)

This loan with Webster Bank was entered into on May 31, 2012 in connection with the acquisition of the building located in East Windsor, CT. The property is collateral for this loan.

(8)

This Bank of America unsecured term loan ("Bank of America Unsecured Term Loan") was entered into on September 10, 2012 and subsequently amended on October 7, 2013. The spread over LIBOR is based on the Company's consolidated leverage ratio. The spread was 1.40% and 1.65% as of December 31, 2013 and December 31, 2012, respectively. The Company swapped the one-month LIBOR for a fixed rate for $100.0 million of the $150.0 million outstanding on the Bank of America Unsecured Term Loan. The net settlements of the swaps commenced on the effective date of the swaps, October 10, 2012 (see Note 6 for further details). There was no remaining borrowing capacity as of December 31, 2013.

(9)

This Connecticut General Life Insurance Company ("CIGNA") credit facility originally was entered into in July 2010 (the "CIGNA-1 Facility"), which loan has various buildings serving as collateral and has no remaining borrowing capacity as of December 31, 2013.

(10)

This CIGNA credit facility originally was entered into in October 2010 (the "CIGNA-2 Facility"), which loan has various buildings serving as collateral and has a remaining borrowing capacity of approximately $2.9 million as of December 31, 2013, subject to customary terms and conditions, including underwriting.

(11)

This CIGNA credit facility originally was entered into on July 8, 2011 ("CIGNA-3 Facility"), which loan has various buildings serving as collateral. The CIGNA-3 Facility and has a remaining borrowing capacity of approximately $47.9 million as of December 31, 2013, subject to customary terms and conditions, including underwriting.

(12)

This Wells Fargo Bank, National Association ("Wells Fargo") unsecured term loan ("Wells Fargo Unsecured Term Loan") was entered into on February 14, 2013. The spread over LIBOR is based on the Company's consolidated leverage. The spread was 2.15% as of December 31, 2013. As of December 31, 2013, the Company swapped one-month LIBOR for a fixed rate on $125.0 million of the $150.0 million capacity on the unsecured term loan (see Note 6 for further details). The borrowing capacity as of December 31, 2013 was $50.0 million, assuming current leverage levels, and was drawn down by the Company on January 30, 2014.

(13)

This Wells Fargo loan ("CMBS Loan") was entered into on November 8, 2012 and is a non-recourse loan with 28 buildings serving as collateral.

2013 Debt Activity

        On February 14, 2013, the Company closed a $150.0 million unsecured term loan with Wells Fargo Bank with a maturity date of February 14, 2020. Borrowings under the Wells Fargo Unsecured Term Loan bear interest at a floating rate equal to the one-month LIBOR plus a spread that will range from 2.15% and 2.70%, based on the Company's consolidated leverage ratio. The spread was 2.15% as of December 31, 2013. The Wells Fargo Unsecured Term Loan has an accordion feature that allows the Company to increase its borrowing capacity to $250.0 million, subject to the satisfaction of certain conditions. The Company incurred $1.4 million in deferred financing fees associated with the closing of the Wells Fargo Unsecured Term Loan, which will be amortized over its seven year term. The Company also incurred an annual fee of $50 thousand to be amortized over one year. The Wells Fargo Unsecured Term Loan has an unused commitment fee equal to 0.35% of its unused portion, which is paid monthly in arrears. During the period February 14, 2013 to December 31, 2013, the Company incurred an unused commitment fee of $0.3 million that was included in the Consolidated Statements of Operations.

        On October 7, 2013, the Unsecured Credit Facility and the Bank of America Unsecured Term Loan were amended to reduce the spreads on the one-month Eurodollar Rate and the Base Rate (each as defined in the credit agreement) and to reduce the unused fee rates. Upon the execution of the amendment, the Company incurred $0.3 million and $0.2 million in deferred financing fees, which will be amortized over the then remaining three and four year terms of the Unsecured Credit Facility and Bank of America Unsecured Term Loan, respectively. The amendment was considered a modification of terms; therefore, no deferred financing fees were expensed as a loss on extinguishment of debt. The following table compares the original terms to the amended terms of the Unsecured Credit Facility and the Bank of America Unsecured Term Loan.

	Original Terms	Amended Terms
Applicable Rates	Unsecured Credit Facility and Unsecured Term Loan	Unsecured Credit Facility	Unsecured Term Loan
Eurodollar Rate(1):	one month-LIBOR + 165.0 bps - 225.0 bps	one month-LIBOR + 145.0 bps - 205.0 bps	one month-LIBOR + 140.0 bps - 200.0 bps
Base Rate(1):	Base rate + 65.0 bps - 125.0 bps	Base rate + 45.0 bps - 105.0 bps	Base rate + 40.0 bps - 100.0 bps
Unused Fees:	<50%, 35.0 bps; > 50%, 25.0 bps	<50%, 25.0 bps; > 50%, 20.0 bps	—

(1)

The spread over the applicable rate is based on the Company's consolidated leverage ratio.

2012 Debt Activity

        On June 27, 2012, the Company paid down the principal outstanding on the Bank of America, N.A. loan in the amount of $8.1 million, which had an interest rate of 7.05%. The early extinguishment of the loan resulted in a gain of $18 thousand as a result of the acceleration of an unamortized fair market value premium. There were no pre-payment penalties associated with the loan.

        On September 10, 2012, the Company paid off the remaining balance under, and terminated, the Credit Facility, which was a secured facility, with proceeds from the Unsecured Credit Facility. The early extinguishment of the Credit Facility resulted in a loss of $0.5 million as a result of the acceleration of the unamortized deferred financing fees. There were no pre-payment penalties associated with the loan.

        On September 10, 2012, contemporaneously with the termination of the Credit Facility, the Company closed on a credit agreement for the Unsecured Credit Facility of up to $200.0 million with a sublimit of $10.0 million for swing line loans and $10.0 million for letters of credit and the $150.0 million Bank of America Unsecured Term Loan with Bank of America, N.A. as administrative agent and Merrill Lynch, Pierce, Fenner and Smith Incorporated as lead arranger. The Unsecured Credit Facility has an accordion feature that allows the Company to increase its borrowing capacity to $300.0 million, subject to the satisfaction of certain conditions. Proceeds from the Unsecured Credit Facility and the Bank of America Unsecured Term Loan have been used for property acquisitions, working capital requirements and other general corporate purposes.

        On September 10, 2012, the Company paid down the remaining principal outstanding on the Wells Fargo Master Loan in the amount of $18.7 million. The Company previously made a prepayment of $105.0 million on August 15, 2012 with proceeds from its common stock offering that was completed on August 15, 2012. The early extinguishment of the Wells Fargo Master Loan resulted in a loss of $0.4 million as a result of the acceleration of the unamortized deferred financing fees. There were no pre-payment penalties associated with the loan.

        On November 8, 2012, certain of the Company's subsidiaries entered into a non-recourse secured loan facility with Wells Fargo Bank, N.A. The loan agreement is a commercial mortgage backed security that provides for a secured loan in the original principal amount of approximately $68.8 million.

Financial Covenant Considerations

        The Company's ability to borrow under the Unsecured Credit Facility, the Bank of America Unsecured Term Loan and the Wells Fargo Unsecured Term Loan (together, the Bank of America Unsecured Term Loan and the Wells Fargo Unsecured Term Loan are the "Unsecured Term Loans") is subject to its ongoing compliance with a number of customary financial covenants, including:

• •

  a maximum consolidated leverage ratio of not greater than 0.60:1.00;

  •

  a maximum secured leverage ratio of not greater than 0.45:1.00;

  •

  a maximum unencumbered leverage ratio of not greater than 0.60:100;

  •

  a maximum secured recourse debt ratio of not greater than 7.5%;

  •

  a minimum fixed charge ratio of not less than 1.50 to 1.00;

  •

  a minimum tangible net worth covenant test; and

  •

  various thresholds on Company level investments.

        The Credit Facility and Term Loans contain financial and operating covenants and restrictions. The Company was in compliance with all such restrictions and financial covenants as of December 31, 2013. In the event of a default related to the financing and operating covenants, the Company's dividend distributions are limited to the minimum amount necessary for the Company to maintain its status as a REIT.

        Each of the Sun Life loan, the Webster Bank loans, the Union Fidelity loan, the CIGNA-1 Facility, the CIGNA-2 Facility, the CIGNA-3 Facility and the CMBS Loan have specific properties and assignments of rents from leases on the properties, that are collateral for these loans. The acquisition costs of these properties were financed by the loans and by collateral assignments of the specific leases and rents. These debt facilities contain certain financial and other covenants. The Company was in compliance with all financial covenants as of December 31, 2013 and December 31, 2012. The real estate net book value of the properties that are collateral for the Company's debt arrangements was $262.7 million and $269.1 million at December 31, 2013 and December 31, 2012, respectively, and is limited to senior, property level secured debt financing arrangements. The 21 properties held as collateral for the CIGNA-1, CIGNA-2, and CIGNA-3 facilities are cross-defaulted and cross-collateralized, among the respective facilities.

Fair Value of Debt

        The fair value of the Company's debt was determined by discounting the future cash flows using the current rates at which loans would be made to borrowers with similar credit ratings and for loans with similar remaining maturities, similar terms, and similar loan-to-value ratios. The discount rates ranged from 1.57% to 5.24% and 1.86% to 4.64% at December 31, 2013 and December 31, 2012, respectively, and were applied to each individual debt instrument. The fair value of the Company's debt is based on Level 3 inputs. The following table presents the aggregate carrying value of the Company's debt and the corresponding estimate of fair value as of December 31, 2013 and December 31, 2012 (in thousands):

	December 31, 2013				December 31, 2012
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Mortgage notes payable	$	225,591	$	228,996	$	229,915	$	242,175
Unsecured Credit Facility	$	80,500	$	80,500	$	99,300	$	99,300
Bank of America Unsecured Term Loan	$	150,000	$	148,781	$	150,000	$	150,000
Wells Fargo Unsecured Term Loan	$	100,000	$	97,302	$	—	$	—

Future Principal Payments of Debt

        The following table reflects the Company's aggregate future principal payments of the Company's debt at December 31, 2013 (dollars in thousands):

2014	$	4,447
2015		4,688
2016		93,777
2017		165,506
2018		113,377
Thereafter		174,008
Total aggregate principal payments	$	555,803
Unamortized balance of historical fair value adjustments		288
Total carrying value of debt	$	556,091

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Deferred Leasing Intangibles

12 Months Ended

Dec. 31, 2013

Deferred Leasing Intangibles

Deferred Leasing Intangibles

4. Deferred Leasing Intangibles

        Deferred leasing intangibles included in total assets consisted of the following (in thousands):

	December 31, 2013			December 31, 2012
In-place leases	$	142,518		$	108,363
Less: Accumulated amortization		(49,756	)		(28,289	)
In-place leases, net		92,762			80,074
Above market leases		57,283			50,699
Less: Accumulated amortization		(17,232	)		(10,362	)
Above market leases, net		40,051			40,337
Tenant relationships		77,260			61,050
Less: Accumulated amortization		(18,693	)		(11,298	)
Tenant relationships, net		58,567			49,752
Leasing commissions		33,107			23,376
Less: Accumulated amortization		(9,520	)		(5,984	)
Leasing commissions, net		23,587			17,392
Total deferred leasing intangibles, net	$	214,967		$	187,555

        Deferred leasing intangibles included in total liabilities consisted of the following (in thousands):

	December 31, 2013			December 31, 2012
Below market leases	$	11,434		$	9,878
Less: Accumulated amortization		(4,520	)		(3,007	)
Total deferred leasing intangibles, net	$	6,914		$	6,871

        Amortization expense, inclusive of results from discontinued operations, related to in-place leases, leasing commissions and tenant relationships of deferred leasing intangibles was $42.5 million, $25.0 million, $12.9 million and $0.7 million for the years ended December 31, 2013, December 31, 2012, for the periods from April 20, 2011 to December 31, 2011 and January 1, 2011 to April 19, 2011, respectively. Rental income, inclusive of results from discontinued operations, related to net amortization of above and below market leases increased (decreased) rental income by $(6.5) million, $(4.8) million, $(2.8) million and $2 thousand for the years ended December 31, 2013, December 31, 2012, the period from April 20, 2011 to December 31, 2011 and the period from January 1, 2011 to April 19, 2011, respectively.

        Amortization related to deferred leasing intangibles over the next five years is as follows (in thousands):

	Estimated Net Amortization of In-Place Leases, Leasing Commissions and Tenant Relationships		Net Decrease to Rental Income Related to Above and Below Market Leases
2014	$	41,754	$	5,980
2015		33,004		6,201
2016		26,818		5,600
2017		21,011		4,240
2018		15,217		3,256

        On June 11, 2012, the Company received notice from a tenant that the tenant was exercising an option in its lease to downsize its space from approximately 190,000 to 60,000 rentable square feet effective March 31, 2013. After determining the undiscounted future cash flows were not recoverable, the Company calculated the fair value of the lease intangibles. Using the remaining contractual lease payments for the reduced space and discounting the cash flows at a risk adjusted return for a market participant of 11.4%, it was determined that the fair value of the lease intangibles was $0.4 million, resulting in a noncash impairment loss of $0.6 million during the year ended December 31, 2012, which is reflected in the accompanying Consolidated Statements of Operations. The fair value calculation of the lease intangibles of $0.4 million was performed using Level 3 inputs, and this is a nonrecurring fair value measurement.

        As discussed in Note 3 above, the Company recognized an impairment loss of $0.7 million during the year ended December 31, 2012 related to lease intangibles at its property located in Great Bend, KS. The fair value calculation of the lease intangibles was performed using Level 3 inputs, and this is a nonrecurring fair value measurement.

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Selected Interim Financial Information (unaudited)

12 Months Ended

Dec. 31, 2013

Selected Interim Financial Information (unaudited)

Selected Interim Financial Information (unaudited)

16. Selected Interim Financial Information (unaudited)

        The tables below reflect the Company's selected quarterly information for the quarters ended December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012, June 30, 2012, March 31, 2012.

	STAG Industrial, Inc.
	Quarter ended December 31, 2013		Quarter ended September 30, 2013			Quarter ended June 30, 2013			Quarter ended March 31, 2013
Total revenue	$	37,418	$	34,644		$	31,842		$	29,988
Income (loss) from continuing operations	$	1,126	$	265		$	(738	)	$	(547	)
Net income (loss) attributable to the common stockholders	$	2,098	$	(2,147	)	$	(2,410	)	$	(1,775	)
Income (loss) per share—basic and diluted	$	0.05	$	(0.05	)	$	(0.06	)	$	(0.04	)

	STAG Industrial, Inc.
	Quarter ended December 31, 2012			Quarter ended September 30, 2012			Quarter ended June 30, 2012			Quarter ended March 31, 2012
Total revenue	$	26,877		$	20,878		$	19,116		$	17,181
Income (loss) from continuing operations	$	(2,973	)	$	(1,371	)	$	(2,028	)	$	(1,445	)
Net income (loss) attributable to the common stockholders	$	(3,372	)	$	(5,262	)	$	(2,235	)	$	(1,942	)
Income (loss) per share—basic and diluted	$	(0.10	)	$	(0.18	)	$	(0.11	)	$	(0.12	)

        Total revenue and income (loss) from continuing operations presented in the tables above will not agree to previously filed financial statements on Forms 10-Q due to the reclassification of amounts from continuing operations to discontinued operations for property sales. Refer to Note 3 for the details of properties sold.

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Concentrations of Credit Risk

12 Months Ended

Dec. 31, 2013

Concentrations of Credit Risk

Concentrations of Credit Risk

12. Concentrations of Credit Risk

        Concentrations of credit risk arise when a number of tenants related to the Company's investments or rental operations are engaged in similar business activities, are located in the same geographic region, or have similar economic features that would cause their inability to meet contractual obligations, including those to the Company, to be similarly affected. The Company regularly monitors its tenant base to assess potential concentrations of credit risk. Management believes the current credit risk portfolio is reasonably well diversified and does not contain any unusual concentration of credit risk. No single tenant accounted for more than 10% of rental income for the years ended December 31, 2013, December 31, 2012 and the period ended from April 20, 2011 to December 31, 2011. No tenant accounted for more than 10% of the Predecessor's related income for the period from January 1, 2011 to April 19, 2011. Recent developments in the general economy and the global credit markets have had a significant adverse effect on companies in numerous industries. The Company has tenants concentrated in various industries that may be experiencing adverse effects from the current economic conditions and the Company could be adversely affected if such tenants default on their leases. The Company has tenants concentrated in three industries, Automotive, Containers & Packaging, and Industrial Equipment, Component and Metals.

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Noncontrolling Interest

12 Months Ended

Dec. 31, 2013

Noncontrolling Interest

Noncontrolling Interest

8. Noncontrolling Interest

        Noncontrolling interests in the Operating Partnership are interests in the Operating Partnership that are not owned by the Company. As of December 31, 2013, noncontrolling interests consisted of 6,299,186 Common Units and 599,464 LTIP units, which in total represented an approximately 13.35% limited partnership interest in the Operating Partnership. As of December 31, 2012, noncontrolling interests consisted of 5,743,958 Common Units and 413,551 LTIP units, which in total represented an approximately 14.71% limited partnership interest in the Operating Partnership. The Company adjusts the carrying value of noncontrolling interest to reflect its share of the book value of the Operating Partnership when there has been a change in the Company's ownership of the Operating Partnership. Such adjustments are recorded to additional paid-in capital as a rebalancing of noncontrolling interest on the accompanying Consolidated Statements of Equity.

Common Units

        The Common Units issued at the time of the Formation Transactions were issued at fair value for an issuance price of $13.00 per Common Unit. Common Units and shares of the Company's common stock have essentially the same economic characteristics in that Common Units and shares of the Company's common stock share equally in the total net income or loss distributions of the Operating Partnership. Investors who own Common Units have the right to cause the Operating Partnership to redeem any or all of their Common Units for cash equal to the then-current market value of one share of the Company's common stock, or, at the Company's election, shares of common stock on a one-for-one basis. All Common Units will receive the same monthly distribution as the per share dividends on common stock. During the years ended December 31, 2013 and December 31, 2012, 2,186 and 1,861,831 Common Units were redeemed on a one-for-one basis for shares of common stock, respectively.

        On June 15, 2012, the Company acquired six industrial properties for which it paid an acquisition fee in the form of 15,789 Common Units in the Operating Partnership with a fair value of approximately $0.2 million, which is included in property acquisition costs on the accompanying Consolidated Statements of Operations. The issuance of the Common Units was effected in reliance upon an exemption from registration provided by Section 4(2) under the Securities Act of 1933, as amended. The Company relied on the exemption based on representations given by the holders of the Common Units.

        As partial consideration for eight buildings acquired on June 19, 2013, the Company granted 555,758 Common Units in the Operating Partnership with a fair value of approximately $11.5 million based on the Company's NYSE closing stock price on June 19, 2013. The issuance of the Common Units was effected in reliance upon an exemption from registration provided by Section 4(2) under the Securities Act of 1933, as amended. The Company relied on the exemption based on representations given by the holders of the Common Units.

LTIP Units

        Pursuant to the 2011 Plan, the Company may grant LTIP units in the Operating Partnership. LTIP units, which the Company grants either as free-standing awards or together with other awards under the 2011 Plan, are valued by reference to the value of the Company's common stock, and are subject to such conditions and restrictions as the compensation committee may determine, including continued employment or service, computation of financial metrics and achievement of pre-established performance goals and objectives. Vested LTIP units can be converted to Common Units in the Operating Partnership on a one-for-one basis once a material equity transaction has occurred that results in the accretion of the member's capital account to the economic equivalent of the Common Unit. As of December 31, 2013, all of the outstanding LTIP units have met the aforementioned criteria and holders have the ability to convert the LTIP units to Common Units. All LTIP units, whether vested or not, will receive the same monthly per unit distributions as Common Units, which equal per share dividends on common stock.

        Concurrently with the closing of the IPO, pursuant to the 2011 Plan, the Company granted a total of 159,046 LTIP units to certain executive officers pursuant to the terms of their employment agreements and a total of 41,395 LTIP units to its non-employee independent directors. These LTIP units vest quarterly over five years, with the first vesting date having commenced on June 30, 2011. On January 3, 2012, the Company granted a total of 196,260 LTIP units to certain executive officers and 22,380 LTIP units to its non-employee, independent directors pursuant to the 2011 Plan. The fair value of the LTIP units was approximately $2.3 million and $2.5 million at the April 20, 2011 and January 3, 2012 grant dates, respectively, which was determined by a lattice binomial option-pricing model based on a Monte Carlo simulation using a volatility factor of 55% and 50%, a risk-free interest rate of 2.10% and 3.40%, an expected annual dividend yield of 6.0% and 6.5% and terms of 10 years, respectively.

        On January 3, 2013, the Company granted a total of 173,044 LTIP units to certain executive officers and 14,525 LTIP units to its non-employee, independent directors pursuant to the 2011 Plan. The fair value of the LTIP units was approximately $3.3 million, which was determined by a lattice binomial option-pricing model based on a Monte Carlo simulation using a volatility factor of 45%, a risk-free interest rate of 1.97%, an expected annual dividend yield of 6.0% and a term of 10 years.

        During the years ended December 31, 2013, December 31, 2012 and the period April 20, 2011 to December 31, 2011, 119,852, 82,440 and 30,066 LTIP units vested with fair values of $2.4 million, $1.3 million and $0.3 million, respectively. During the year ended December 31, 2013, 1,656 LTIP units were redeemed for Common Units. During the year ended December 31, 2013, there were no forfeitures of LTIP units. On May 7, 2012, the Company's non-employee director, Edward F. Lange, did not stand for re-election. Consequently, he forfeited 10,875 unvested LTIP units and the Company expensed the dividends previously paid to Mr. Lange on the unvested LTIP units in the amount of $8 thousand. On July 17, 2012, the Board of Directors elected Christopher P. Marr to serve as a director of the Company, Chairman of the Company's Nominating and Corporate Governance Committee and a member of the Company's Compensation Committee, effective August 2, 2012. On August 2, 2012 the Company granted Mr. Marr 5,345 LTIP units with a fair value of $0.1 million.

        The Company recognized $1.6 million, $0.9 million in non-cash compensation expense for the years ended December 31, 2013 December 31, 2012, and $0.3 million for the period from April 20, 2011 to December 31, 2011. The Company recognized zero non-cash compensation expense for the period from January 1, 2011 to April 19, 2011. Unrecognized compensation expense was $5.2 million, $3.5 million and $2.0 million related to the LTIP units at December 31, 2013, December 31, 2012 and December 31, 2011, respectively, and is included in additional paid-in capital on the accompanying Consolidated Statements of Equity.

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Employee Benefit Plans (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2013	Dec. 31, 2012
Employee Benefit Plans
Period of service for employees to be eligible to participate in the defined contribution plan		3 months
Discretionary match (as a percent)		50.00%
Maximum percentage of employee's annual salary that the entity can contribute		6.00%
Aggregate matching contribution	$ 46	$ 100	$ 100
Vesting period		3 years

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Use of Derivative Financial Instruments

12 Months Ended

Dec. 31, 2013

Use of Derivative Financial Instruments

Use of Derivative Financial Instruments

6. Use of Derivative Financial Instruments

Risk Management Objective of Using Derivatives

        The Company's use of derivative instruments is limited to the utilization of interest rate swaps to manage interest rate risk exposures and not for speculative purposes. The principal objective of such arrangements is to minimize the risks and/or costs associated with the Company's operating and financial structure, as well as to hedge specific transactions.

        On September 14, 2012, the Company commenced a program of entering into seven interest rate swap agreements for notional amounts totaling $100 million with an effective date of October 10, 2012 that effectively convert the one-month LIBOR rate on $100.0 million of the $150.0 million Bank of America Unsecured Term Loan, from a variable rate of one-month LIBOR plus a spread based on the Company's consolidated leverage ratio to a fixed rate plus a spread based on the Company's consolidated leverage ratio. These swaps were designated as cash flow hedges of interest rate risk.

        On March 1, 2013, the Company entered into an interest rate swap agreement for notional amount of $25.0 million with an effective date of March 1, 2013 that converts the one-month LIBOR rate on the $25.0 million then outstanding balance of the Wells Fargo Unsecured Term Loan from a variable rate of one-month LIBOR plus a spread based on the Company's consolidated leverage ratio to a fixed rate of 1.33% plus a spread based on the Company's consolidated leverage ratio. This swap was designated as a cash flow hedge of interest rate risk.

        On June 13, 2013, the Company entered into two interest rate swap agreements for notional amounts of $50.0 million and $25.0 million with effective dates of July 1, 2013 and August 1, 2013 that convert the one-month LIBOR rate on the Wells Fargo Unsecured Term Loan from a variable rate of one-month LIBOR plus a spread based on the Company's consolidated leverage ratio to a fixed rate of 1.681% and 1.703%, respectively, plus a spread based on the Company's consolidated leverage ratio. These swaps were designated as cash flow hedges of interest rate risk.

        On September 30, 2013, the Company entered into an interest rate swap agreement for a notional amount of $25.0 million with an effective date of February 3, 2014 that converts the one-month LIBOR rate on the Wells Fargo Unsecured Term Loan from a variable rate of one-month LIBOR plus a spread based on the Company's consolidated leverage ratio to a fixed rate of 1.9925% plus a spread based on the Company's consolidated leverage ratio. This swap was designated as cash flow hedge of interest rate risk. The $25.0 million notional amount was drawn on January 30, 2014.

        The following table details the Company's outstanding interest rate swaps as of December 31, 2013 (collectively, the "Unsecured Term Loan Swaps") (in thousands):

Interest Rate Derivative	Trade Date	Notional Amount			Fixed Interest Rate			Variable Interest Rate	Maturity Date
Interest rate swap	Sept-14-2012	$	10,000	(1)		0.7945	%	One-month LIBOR	September 10, 2017
Interest rate swap	Sept-14-2012	$	10,000	(1)		0.7945	%	One-month LIBOR	September 10, 2017
Interest rate swap	Sept-14-2012	$	10,000	(1)		0.7945	%	One-month LIBOR	September 10, 2017
Interest rate swap	Sept-14-2012	$	10,000	(1)		0.7945	%	One-month LIBOR	September 10, 2017
Interest rate swap	Sept-14-2012	$	10,000	(1)		0.7975	%	One-month LIBOR	September 10, 2017
Interest rate swap	Sept-20-2012	$	25,000	(1)		0.7525	%	One-month LIBOR	September 10, 2017
Interest rate swap	Sept-24-2012	$	25,000	(1)		0.727	%	One-month LIBOR	September 10, 2017
Interest rate swap	March-1-2013	$	25,000	(2)		1.33	%	One-month LIBOR	February 14, 2020
Interest rate swap	June-13-2013	$	25,000	(2)		1.703	%	One-month LIBOR	February 14, 2020
Interest rate swap	June-13-2013	$	50,000	(2)		1.681	%	One-month LIBOR	February 14, 2020
Interest rate swap	Sept-30-2013	$	25,000	(2)		1.9925	%	One-month LIBOR	February 14, 2020

(1)

Fixes the interest rate of the Bank of America Unsecured Term Loan

(2)

Fixes the interest rate of the Wells Fargo Unsecured Term Loan

        STAG Predecessor Group entered into an interest rate swap ("Wells Fargo Master Loan Swap") with a notional amount of $141.0 million to hedge against interest rate risk on its then outstanding variable rate loan with Wells Fargo, which was part of the debt contributed to the Company in its Formation Transactions and subsequently paid down on September 10, 2012. The Wells Fargo Master Loan Swap was not designated as a hedge for accounting purposes and it expired on January 31, 2012.

        The fair value of the interest rate swaps outstanding as of December 31, 2013 and December 31, 2012 was as follows (in thousands):

	Balance Sheet Location(1)	Notional Amount December 31, 2013		Fair Value December 31, 2013		Notional Amount December 31, 2012		Fair Value December 31, 2012
Unsecured Term Loan Swaps	Interest Rate Swaps-Asset (Liability)	$	225,000	$	3,924	$	100,000	$	(480	)

(1)

The individual interest rate swaps' assets and liabilities are not netted on the accompanying Consolidated Balance Sheets.

Cash Flow Hedges of Interest Rate Risk

        The Company's objectives in using interest rate swaps are to add stability to interest expense and to manage its exposure to interest rate movements. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

        The effective portion of changes in the fair value of derivatives designated and qualified as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the years ended December 31, 2013 and December 31, 2012 the Company did not record any hedge ineffectiveness.

        Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the Company's variable-rate debt. The Company estimates that an additional $2.3 million will be reclassified from accumulated other comprehensive income (loss) as an increase to interest expense over the next 12 months.

        The table below details the location in the financial statements of the gain or loss recognized on interest rate swaps designated as cash flow hedges for the years ended December 31, 2013 and 2012, respectively (in thousands):

	STAG Industrial, Inc.
	Year ended December 31, 2013		Year ended December 31, 2012
Amount of income (loss) recognized in accumulated other comprehensive income (loss) on interest rate swaps (effective portion)	$	3,032	$	(608	)
Amount of loss reclassified from accumulated other comprehensive income (loss) into income (loss) as interest expense (effective portion)	$	1,373	$	128
Amount of loss recognized in income on swaps (ineffective portion and amount excluded from effectiveness testing)	$	—	$	—

        For the Wells Fargo Master Loan Swap, which was not designated as a hedge for accounting purposes and expired on January 31, 2012, the Company recognized gains relating to the change in fair market value of the interest rate swap of $0.2 million for the year ended December 31, 2012, $2.2 million for the period from April 20, 2011 to December 31, 2011, and $0.8 for the period from January 1, 2011 to April 19, 2011, which is included in gain on interest rate swaps on the accompanying Consolidated and Combined Statements of Operations.

        The Company is exposed to credit risk in the event of non-performance by the counterparties to the interest rate swaps. The Company minimizes this risk exposure by limiting counterparties to major banks and investment brokers who meet established credit and capital guidelines.

Credit-risk-related Contingent Features

        As of December 31, 2013, the fair values of all of the Company's interest rate swaps were in an asset position of $4.2 million excluding any adjustment for nonperformance risk related to these agreements. Accrued interest expense was $0.2 million as of December 31, 2013. As of December 31, 2013, the Company has not posted any collateral related to these agreements. The adjustment for nonperformance risk included in the fair value of the Company's net asset position was $0.3 million as of December 31, 2013.

Fair Value of Interest Rate Swaps

        The valuation of the interest rate swaps is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs including interest rate curves. The fair values of interest rate swaps are determined by using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. As of December 31, 2013 and December 31, 2012, the Company applied the provisions of this standard to the valuation of its interest rate swaps.

        The following sets forth the Company's financial instruments that are accounted for at fair value on a recurring basis as of December 31, 2013 and December 31, 2012 (in thousands):

			Fair Value Measurements as of December 31, 2013 Using:
	December 31, 2013		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
Assets:
Interest Rate Swaps	$	3,924	$	—	$	3,924	$	—

				Fair Value Measurements as of December 31, 2012 Using:
	December 31, 2012			Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Unobservable Inputs (Level 3)
Liabilities:
Interest Rate Swaps	$	(480	)	$	—	$	(480	)	$	—

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Equity

12 Months Ended

Dec. 31, 2013

Equity

Equity

7. Equity

Preferred Stock

        Pursuant to its charter, the Company is authorized to issue 10,000,000 shares of preferred stock, par value $0.01 per share. On November 2, 2011, the Company completed an underwritten public offering of 2,760,000 shares (including 360,000 shares issued pursuant to the full exercise of the underwriters' overallotment option) of 9.0% Series A Cumulative Redeemable Preferred Stock, $0.01 par value per share (the "Series A Preferred Stock"), at a price to the public of $25.00 per share. Dividends on the Series A Preferred Stock are payable quarterly in arrears on or about the last day of March, June, September and December of each year. The Series A Preferred Stock ranks senior to the Company's common stock with respect to dividend rights and rights upon the liquidation, dissolution or winding up of the Company. The Series A Preferred Stock has no stated maturity date and is not subject to mandatory redemption or any sinking fund. Generally, the Company is not permitted to redeem the Series A Preferred Stock prior to November 2, 2016, except in limited circumstances relating to the Company's ability to qualify as a REIT and in certain other circumstances related to a change of control (as defined in the articles supplementary for the Series A Preferred Stock).

        On April 16, 2013, the Company completed an underwritten public offering of 2,800,000 shares (including 300,000 shares issued pursuant to the full exercise of the underwriters' overallotment option) of 6.625% Series B Cumulative Redeemable Preferred Stock, $0.01 par value per share (the "Series B Preferred Stock"), at a price to the public of $25.00 per share. The Company received net proceeds of $67.8 million, reflecting gross proceeds of $70.0 million net of the underwriters discount of $2.2 million. The Company also incurred direct offering costs of $0.2 million. The underwriters' discount of $2.2 million and $0.2 million of direct offering costs incurred are reflected as a reduction to additional paid-in capital in the Consolidated Balance Sheet of the Company. Dividends on the Series B Preferred Stock are payable quarterly in arrears on or about the last day of March, June, September and December of each year. The Series B Preferred Stock ranks senior to the Company's common stock and on parity with the Company's Series A Preferred Stock with respect to dividend rights and rights upon the liquidation, dissolution or winding up of the Company. The Series B Preferred Stock has no stated maturity date and is not subject to mandatory redemption or any sinking fund. Generally, the Company is not permitted to redeem the Series B Preferred Stock prior to April 16, 2018, except in limited circumstances relating to the Company's ability to qualify as a REIT and in certain other circumstances related to a change of control (as defined in the articles supplementary for the Series B Preferred Stock). The Company used the net proceeds to pay off the then outstanding amount due under the Unsecured Credit Facility and to fund acquisitions.

        The table below sets forth the dividends that have been declared by the Company's board of directors on the Series A Preferred Stock during the years ended December 31, 2013 and December 31, 2012, respectively:

Amount Declared During Quarter Ended 2013	Declaration Date	Per Share		Date Paid
December 31	November 1, 2013	$	0.5625	December 31, 2013
September 30	August 2, 2013		0.5625	September 30, 2013
June 30	May 6, 2013		0.5625	July 1, 2013
March 31	March 1, 2013		0.5625	April 1, 2013
Total 2013		$	2.25

Amount Declared During Quarter Ended 2012	Declaration Date	Per Share		Date Paid
December 31	November 2, 2012	$	0.5625	December 31, 2012
September 30	August 2, 2012		0.5625	October 1, 2012
June 30	May 15, 2012		0.5625	July 2, 2012
March 31	March 6, 2012		0.5625	April 2, 2012
Total 2012		$	2.25

        The table below sets forth the dividends that have been declared by the Company's board of directors on the Series B Preferred Stock during the year ended December 31, 2013:

Amount Declared During Quarter Ended 2013	Declaration Date	Per Share		Date Paid
December 31	November 1, 2013	$	0.4140625	December 31, 2013
September 30	August 2, 2013		0.4140625	September 30, 2013
June 30 (prorated for April 16, 2013 to June 30, 2013)	May 6, 2013		0.3450500	July 1, 2013
Total 2013		$	1.1731750

Common Stock

        On April 20, 2011, the Company completed the IPO of its common stock. The IPO resulted in the sale of 13,750,000 shares of the Company's common stock at a price of $13.00 per share. The Company received net proceeds of $166.3 million, reflecting gross proceeds of $178.8 million, net of underwriting fees of $12.5 million. On May 13, 2011, the underwriters of the Company's IPO exercised their option to purchase an additional 2,062,500 shares of common stock at $13.00 per share, generating an additional $26.8 million of gross proceeds and $24.9 million of net proceeds after the underwriters' discount and offering costs. The total gross proceeds to the Company from the IPO and the exercise of the overallotment option was approximately $205.6 million. The Company incurred Formation Transaction costs and offering costs of $6.2 million, of which $3.7 million was expensed and the remaining $2.5 million was deducted from the gross proceeds of the IPO. Total underwriters' discounts, commissions and offering costs of $16.9 million are reflected as a reduction to additional paid-in capital on the Consolidated Balance Sheets of the Company.

        On May 29, 2012, the Company completed an underwritten public offering of 8,337,500 of shares common stock at a public offering price of $12.88 per share, inclusive of 1,087,500 shares issued pursuant to the full exercise of the underwriters' overallotment option. The Company received net proceeds of $102.8 million, reflecting gross proceeds of $107.4 million, net of underwriting discounts of $4.6 million. The Company also incurred direct offering costs of $0.5 million. The underwriters' discount of $4.6 million and $0.5 million of direct offering costs incurred are reflected as a reduction to additional paid-in capital on the Consolidated Balance Sheets of the Company. The Company also incurred $0.1 million of indirect offering costs, which are included in offering costs on the accompanying Consolidated and Combined Statements of Operations.

        On August 15, 2012, the Company completed an underwritten public offering of 9,200,000 of shares common stock at a public offering price of $14.15 per share, inclusive of 1,200,000 shares issued pursuant to the full exercise of the underwriters' option. The Company received net proceeds of $124.6 million, reflecting gross proceeds of $130.2 million, net of the underwriters' discount of $5.5 million. The Company also incurred direct offering costs of $0.2 million. The underwriters' discount of $5.5 million and $0.2 million of direct offering costs incurred are reflected as a reduction to additional paid-in capital on the Consolidated Balance Sheets of the Company.

        On December 14, 2012, the Company announced that it had established an "at the market" ("ATM") stock offering program through which it may sell from time to time up to an aggregate of $75.0 million of its common stock through sales agents. During the years ended December 31, 2013 and December 31, 2012, the Company sold 2,672,692 and 298,000 shares of common stock, respectively, under its ATM. During the years ended December 31, 2013 and December 31, 2012, the Company received net proceeds of $53.9 million and $5.3 million, reflecting gross proceeds of $54.7 million and $5.4 million, net of the sales agents' fees of approximately $0.8 million and $0.1 million, respectively. The Company used the net proceeds for acquisitions and general corporate purposes. As of December 31, 2013, there was approximately $14.9 million of common stock available to be sold under the ATM.

        On January 22, 2013, the Company completed an underwritten public offering of 6,284,152 shares of common stock (including 819,672 shares issued pursuant to the full exercise of the underwriters' option) at a public offering price of $18.30 per share. The Company received net proceeds of $110.1 million, reflecting gross proceeds of $115.0 million net of the underwriters discount of $4.9 million. The Company also incurred direct offering costs of $0.2 million. The underwriters' discount of $4.9 million and $0.2 million of direct offering costs incurred are reflected as a reduction to additional paid-in capital on the Consolidated Balance Sheet of the Company. The Company used the proceeds to fully pay down the then outstanding balance on the Unsecured Credit Facility.

        On August 15, 2013, the Company's board of directors voted to increase the frequency of the payment of the Company's common stock dividend from quarterly to monthly. On September 24, 2013, the Company's board of directors declared dividends on the Company's common stock for each month of the fourth quarter of $0.10 per share, which equates to $0.30 per share on a quarterly basis.

        The table below sets forth the dividends that have been declared by the Company's board of directors on its common stock during the years ended December 31, 2013 and December 31, 2012, respectively:

Amount Declared During 2013	Declaration Date	Per Share		Date Paid
Month ended December 31	September 24, 2013	$	0.10	January 15, 2014
Month ended November 30	September 24, 2013		0.10	December 16, 2013
Month ended October 31	September 24, 2013		0.10	November 15, 2013
Quarter ended September 30	August 2, 2013		0.30	October 15, 2013
Quarter ended June 30	May 6, 2013		0.30	July 15, 2013
Quarter ended March 31	March 1, 2013		0.30	April 15, 2013
Total 2013		$	1.20

Amount Declared During Quarter Ended 2012	Declaration Date	Per Share		Date Paid
December 31	November 2, 2012	$	0.27	January 15, 2013
September 30	August 2, 2012		0.27	October 15, 2012
June 30	May 15, 2012		0.27	July 13, 2012
March 31	March 6, 2012		0.26	April 13, 2012
Total 2012		$	1.07

        On December 18, 2013, the Company's board of directors approved a 5% increase in the Company's annual common stock dividend from the 2013 annual rate of $1.20 per share to $1.26 per share commencing with the payment of the January 2014 common stock dividend to be paid in February 2014.

        All of the Company's independent directors elected to receive shares of common stock in lieu of cash for their fees for serving as members of the board and/or chairmen of various committees during 2013 and 2012. The shares of common stock are issued to the independent directors pursuant to the STAG Industrial, Inc. 2011 Equity Incentive Plan, as amended (the "2011 Plan"). The number of shares of common stock granted is calculated based on the trailing 10-day average common stock price ending on the third business day preceding the grant date. The fair value of the shares of the common stock granted is calculated based on the closing stock price per the NYSE on the grant date multiplied by the number of shares of common stock granted. The table below sets forth the grants of common stock for the members' service during quarters ended in 2013 and 2012 as below:

Service During Quarter Ended 2013	Grant Date	Shares		Fair Value
December 31	January 15, 2014		2,554	$	52,000
September 30	October 15, 2013		2,607		53,000
June 30	July 15, 2013		2,602		53,000
March 31	April 15, 2013		2,418		52,000
Total 2013			10,181	$	210,000

Service During Quarter Ended 2012	Grant Date	Shares		Fair Value
December 31	January 15, 2013		2,851	$	54,000
September 30	October 15, 2012		2,876		49,000
June 30	July 13, 2012		3,108		46,000
March 31	April 13, 2012		3,776		50,000
Total 2012			12,611	$	199,000

Restricted Stock-Based Compensation

        Concurrently with the closing of the IPO, the Company granted a total of 80,809 restricted shares of common stock with a fair value of $1.0 million ($12.21 per share) to certain employees of the Company pursuant to the 2011 Plan. The shares of restricted common stock are subject to time-based vesting and will vest, subject to the recipient's continued employment, in five equal installments on each anniversary of the date of grant. Holders of restricted stock have voting rights and rights to receive dividends. Restricted stock may not be sold, assigned, transferred, pledged or otherwise disposed of and is subject to a risk of forfeiture prior to the expiration of the applicable vesting period. The restricted stock fair value on the date of grant is amortized on a straight-line basis as non-cash compensation expense over the service period during which term the stock fully vests.

        On January 3, 2012, the Company granted 87,025 shares of time-based restricted common stock to certain employees of the Company pursuant to the 2011 Plan, with a fair value of $1.0 million ($11.89 per share).

        On January 3, 2013, the Company granted 106,268 shares of time-based restricted common stock to certain employees of the Company pursuant to the 2011 Plan, with a fair value of $1.9 million ($18.11 per share).

        During the years ended December 31, 2013, December 31, 2012 and the period April 20, 2011 to December 31, 2011, 32,012, 16,161 and 0 restricted shares vested with fair values of $0.6 million, $0.2 million and $0, respectively. The Company recognizes non-cash compensation expense ratably over the vesting period, and accordingly, the Company recognized $0.8 million and $0.4 million in non-cash compensation expense related to restricted shares for the years ended December 31, 2013 and December 31, 2012, respectively. Unrecognized compensation expense for the remaining life of these awards was $2.5 million and $1.5 million as of December 31, 2013 and December 31, 2012, respectively. As of December 31, 2013 and December 31, 2012, there were 11,540 and 1,559 forfeitures of shares of restricted common stock, respectively.

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Future Minimum Rents

12 Months Ended

Dec. 31, 2013

Future Minimum Rents

Future Minimum Rents

9. Future Minimum Rents

        The Company's properties are leased to tenants under triple net, modified, and gross leases. Minimum lease payments receivable, excluding tenant reimbursement of expenses, under non-cancelable operating leases in effect as of December 31, 2013 are approximately as follows (in thousands):

2014	$	134,391
2015		121,243
2016		106,356
2017		85,455
2018		66,355
Thereafter		211,117

        No single tenant represented more than 10% of the Company's total rental income for the years ended December 31, 2013, December 31, 2012, the periods from April 20, 2011 to December 31, 2011 and January 1, 2011 to April 19, 2011.

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Subsequent Events (Details)	0 Months Ended
	Feb. 07, 2014	Jan. 02, 2014 Subsequent event LTIP Units Executive officers	Jan. 02, 2014 Subsequent event LTIP Units Non-employee, independent directors	Jan. 02, 2014 Subsequent event Restricted stock Employees
Subsequent Events
Unit granted for services		203,691	20,733	103,149
Period of which the former CFO will provide consultation services	1 year

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Schedule 3 - Real Estate and Accumulated Depreciation (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Real Estate and Accumulated Depreciation
Encumbrances	$ (225,303)
Building and Tenant Improvements (initial cost)	924,075
Land	134,399
Costs Capitalized Subsequent to Acquisition and Valuation Provision	20,572
Building Improvements and Equipment	944,647
Land	134,399
Total	1,079,046	816,227	502,258
Accumulated Depreciation	(71,653)	(46,175)	(30,004)
Albion, IN
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	93
Land	67
Building Improvements and Equipment	93
Land	67
Total	160
Accumulated Depreciation	(17)
Albion, IN
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	932
Land	103
Building Improvements and Equipment	932
Land	103
Total	1,035
Accumulated Depreciation	(169)
Albion, IN
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	1,107
Land	55
Building Improvements and Equipment	1,107
Land	55
Total	1,162
Accumulated Depreciation	(201)
Albion, IN
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	970
Land	332
Building Improvements and Equipment	970
Land	332
Total	1,302
Accumulated Depreciation	(176)
Albion, IN
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	1,397
Land	52
Building Improvements and Equipment	1,397
Land	52
Total	1,449
Accumulated Depreciation	(253)
Albion, IN
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	1,528
Land	126
Building Improvements and Equipment	1,528
Land	126
Total	1,654
Accumulated Depreciation	(277)
Kendallville, IN
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	1,510
Land	142
Building Improvements and Equipment	1,510
Land	142
Total	1,652
Accumulated Depreciation	(273)
Albion, IN
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	710
Land	187
Building Improvements and Equipment	710
Land	187
Total	897
Accumulated Depreciation	(129)
Alexandria, MN
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	4,568
Land	960
Costs Capitalized Subsequent to Acquisition and Valuation Provision	151
Building Improvements and Equipment	4,719
Land	960
Total	5,679
Accumulated Depreciation	(398)
Appleton, WI
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	3,916
Land	495
Costs Capitalized Subsequent to Acquisition and Valuation Provision	191
Building Improvements and Equipment	4,107
Land	495
Total	4,602
Accumulated Depreciation	(693)
Arlington, TX
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	2,455
Land	413
Costs Capitalized Subsequent to Acquisition and Valuation Provision	(45)
Building Improvements and Equipment	2,410
Land	413
Total	2,823
Accumulated Depreciation	(394)
Arlington, TX
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	6,151
Land	1,246
Building Improvements and Equipment	6,151
Land	1,246
Total	7,397
Accumulated Depreciation	(289)
Atlanta, GA
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	7,437
Land	917
Costs Capitalized Subsequent to Acquisition and Valuation Provision	298
Building Improvements and Equipment	7,735
Land	917
Total	8,652
Accumulated Depreciation	(318)
Auburn Hills, MI
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	2,246
Land	224
Costs Capitalized Subsequent to Acquisition and Valuation Provision	(4)
Building Improvements and Equipment	2,242
Land	224
Total	2,466
Accumulated Depreciation	(77)
Avon, CT
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	2,750
Land	336
Building Improvements and Equipment	2,750
Land	336
Total	3,086
Accumulated Depreciation	(127)
Belfast, ME
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	10,728
Land	1,883
Costs Capitalized Subsequent to Acquisition and Valuation Provision	383
Building Improvements and Equipment	11,111
Land	1,883
Total	12,994
Accumulated Depreciation	(921)
Bellevue, OH
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	3,621
Land	381
Building Improvements and Equipment	3,621
Land	381
Total	4,002
Accumulated Depreciation	(181)
Belvidere, IL
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	3,956
Land	733
Building Improvements and Equipment	3,956
Land	733
Total	4,689
Accumulated Depreciation	(78)
Belvidere, IL
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	3,436
Land	1,310
Building Improvements and Equipment	3,436
Land	1,310
Total	4,746
Accumulated Depreciation	(91)
Belvidere, IL
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	2,310
Land	538
Building Improvements and Equipment	2,310
Land	538
Total	2,848
Accumulated Depreciation	(51)
Belvidere, IL
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	6,899
Land	670
Building Improvements and Equipment	6,899
Land	670
Total	7,569
Accumulated Depreciation	(116)
Belvidere, IL
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	4,321
Land	668
Building Improvements and Equipment	4,321
Land	668
Total	4,989
Accumulated Depreciation	(91)
Belvidere, IL
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	3,730
Land	866
Building Improvements and Equipment	3,730
Land	866
Total	4,596
Accumulated Depreciation	(73)
Belvidere, IL
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	2,808
Land	586
Building Improvements and Equipment	2,808
Land	586
Total	3,394
Accumulated Depreciation	(67)
Belvidere, IL
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	8,340
Land	1,542
Building Improvements and Equipment	8,340
Land	1,542
Total	9,882
Accumulated Depreciation	(192)
Belvidere, IL
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	71
Land	216
Building Improvements and Equipment	71
Land	216
Total	287
Accumulated Depreciation	(12)
Boardman, OH
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	3,482
Land	282
Costs Capitalized Subsequent to Acquisition and Valuation Provision	593
Building Improvements and Equipment	4,075
Land	282
Total	4,357
Accumulated Depreciation	(648)
Boardman, OH
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	1,979
Land	192
Costs Capitalized Subsequent to Acquisition and Valuation Provision	359
Building Improvements and Equipment	2,338
Land	192
Total	2,530
Accumulated Depreciation	(329)
Buena Vista, VA
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	2,500
Land	534
Building Improvements and Equipment	2,500
Land	534
Total	3,034
Accumulated Depreciation	(114)
Buffalo, NY
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	2,924
Land	146
Building Improvements and Equipment	2,924
Land	146
Total	3,070
Accumulated Depreciation	(129)
Canton, OH
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	5,078
Land	586
Costs Capitalized Subsequent to Acquisition and Valuation Provision	128
Building Improvements and Equipment	5,206
Land	586
Total	5,792
Accumulated Depreciation	(981)
Catoosa, OK
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	3,937
Building Improvements and Equipment	3,937
Total	3,937
Accumulated Depreciation	(64)
Charlotte, NC
Real Estate and Accumulated Depreciation
Encumbrances	(12,541)
Building and Tenant Improvements (initial cost)	10,239
Land	3,535
Costs Capitalized Subsequent to Acquisition and Valuation Provision	525
Building Improvements and Equipment	10,764
Land	3,535
Total	14,299
Accumulated Depreciation	(994)
Charlotte, NC
Real Estate and Accumulated Depreciation
Encumbrances	(15,830)
Building and Tenant Improvements (initial cost)	12,818
Land	2,734
Costs Capitalized Subsequent to Acquisition and Valuation Provision	161
Building Improvements and Equipment	12,979
Land	2,734
Total	15,713
Accumulated Depreciation	(1,277)
Cheektowaga, NY
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	2,757
Land	216
Costs Capitalized Subsequent to Acquisition and Valuation Provision	395
Building Improvements and Equipment	3,152
Land	216
Total	3,368
Accumulated Depreciation	(293)
Chesterfield, MI
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	1,169
Land	207
Costs Capitalized Subsequent to Acquisition and Valuation Provision	62
Building Improvements and Equipment	1,231
Land	207
Total	1,438
Accumulated Depreciation	(301)
Chesterfield, MI
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	798
Land	150
Costs Capitalized Subsequent to Acquisition and Valuation Provision	15
Building Improvements and Equipment	813
Land	150
Total	963
Accumulated Depreciation	(133)
Chesterfield, MI
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	802
Land	151
Costs Capitalized Subsequent to Acquisition and Valuation Provision	131
Building Improvements and Equipment	933
Land	151
Total	1,084
Accumulated Depreciation	(154)
Chesterfield, MI
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	5,304
Land	942
Costs Capitalized Subsequent to Acquisition and Valuation Provision	972
Building Improvements and Equipment	6,276
Land	942
Total	7,218
Accumulated Depreciation	(1,293)
Chicopee, MA
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	5,867
Land	504
Building Improvements and Equipment	5,867
Land	504
Total	6,371
Accumulated Depreciation	(243)
Chippewa Falls, WI
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	2,303
Land	133
Building Improvements and Equipment	2,303
Land	133
Total	2,436
Accumulated Depreciation	(142)
Chippewa Falls, WI
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	544
Land	44
Building Improvements and Equipment	544
Land	44
Total	588
Accumulated Depreciation	(33)
Cincinnati, OH
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	5,172
Land	384
Costs Capitalized Subsequent to Acquisition and Valuation Provision	1,751
Building Improvements and Equipment	6,923
Land	384
Total	7,307
Accumulated Depreciation	(1,142)
Cleveland, TN
Real Estate and Accumulated Depreciation
Encumbrances	(2,964)
Building and Tenant Improvements (initial cost)	3,161
Land	554
Costs Capitalized Subsequent to Acquisition and Valuation Provision	84
Building Improvements and Equipment	3,245
Land	554
Total	3,799
Accumulated Depreciation	(260)
West Columbia, SC
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	6,988
Land	715
Costs Capitalized Subsequent to Acquisition and Valuation Provision	102
Building Improvements and Equipment	7,090
Land	715
Total	7,805
Accumulated Depreciation	(179)
Conyers, GA
Real Estate and Accumulated Depreciation
Encumbrances	(3,928)
Building and Tenant Improvements (initial cost)	4,142
Land	969
Costs Capitalized Subsequent to Acquisition and Valuation Provision	80
Building Improvements and Equipment	4,222
Land	969
Total	5,191
Accumulated Depreciation	(331)
Dallas, GA
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	1,712
Land	475
Building Improvements and Equipment	1,712
Land	475
Total	2,187
Accumulated Depreciation	(78)
LaGrange, GA
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	3,175
Land	240
Costs Capitalized Subsequent to Acquisition and Valuation Provision	41
Building Improvements and Equipment	3,216
Land	240
Total	3,456
Accumulated Depreciation	(354)
Danville, KY
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	11,814
Land	965
Costs Capitalized Subsequent to Acquisition and Valuation Provision	997
Building Improvements and Equipment	12,811
Land	965
Total	13,776
Accumulated Depreciation	(1,122)
Daytona Beach, FL
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	875
Land	1,237
Costs Capitalized Subsequent to Acquisition and Valuation Provision	740
Building Improvements and Equipment	1,615
Land	1,237
Total	2,852
Accumulated Depreciation	(315)
Dayton, OH
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	3,650
Land	391
Costs Capitalized Subsequent to Acquisition and Valuation Provision	624
Building Improvements and Equipment	4,274
Land	391
Total	4,665
Accumulated Depreciation	(510)
DeKalb, IL
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	4,568
Land	489
Building Improvements and Equipment	4,568
Land	489
Total	5,057
Accumulated Depreciation	(115)
De Pere, WI
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	6,144
Land	525
Building Improvements and Equipment	6,144
Land	525
Total	6,669
Accumulated Depreciation	(265)
Duncan, SC
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	11,352
Land	1,002
Costs Capitalized Subsequent to Acquisition and Valuation Provision	44
Building Improvements and Equipment	11,396
Land	1,002
Total	12,398
Accumulated Depreciation	(519)
Duncan, SC
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	6,928
Land	709
Building Improvements and Equipment	6,928
Land	709
Total	7,637
Accumulated Depreciation	(359)
Edgefield, SC
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	938
Land	220
Building Improvements and Equipment	938
Land	220
Total	1,158
Accumulated Depreciation	(52)
Elkhart, IN
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	210
Land	25
Costs Capitalized Subsequent to Acquisition and Valuation Provision	14
Building Improvements and Equipment	224
Land	25
Total	249
Accumulated Depreciation	(45)
Elkhart, IN
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	3,567
Land	422
Costs Capitalized Subsequent to Acquisition and Valuation Provision	161
Building Improvements and Equipment	3,728
Land	422
Total	4,150
Accumulated Depreciation	(628)
El Paso, TX
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	3,096
Costs Capitalized Subsequent to Acquisition and Valuation Provision	373
Building Improvements and Equipment	3,469
Total	3,469
Accumulated Depreciation	(137)
East Windsor, CT
Real Estate and Accumulated Depreciation
Encumbrances	(3,360)
Building and Tenant Improvements (initial cost)	4,713
Land	348
Costs Capitalized Subsequent to Acquisition and Valuation Provision	447
Building Improvements and Equipment	5,160
Land	348
Total	5,508
Accumulated Depreciation	(403)
Lexington, VA
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	445
Land	59
Building Improvements and Equipment	445
Land	59
Total	504
Accumulated Depreciation	(77)
Fairfield, VA
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	2,274
Land	295
Costs Capitalized Subsequent to Acquisition and Valuation Provision	177
Building Improvements and Equipment	2,451
Land	295
Total	2,746
Accumulated Depreciation	(463)
Farmington, NY
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	5,342
Land	410
Costs Capitalized Subsequent to Acquisition and Valuation Provision	12
Building Improvements and Equipment	5,354
Land	410
Total	5,764
Accumulated Depreciation	(908)
Franklin, IN
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	12,042
Land	2,479
Building Improvements and Equipment	12,042
Land	2,479
Total	14,521
Accumulated Depreciation	(713)
Fort Worth, TX
Real Estate and Accumulated Depreciation
Encumbrances	(2,271)
Building and Tenant Improvements (initial cost)	2,965
Land	389
Building Improvements and Equipment	2,965
Land	389
Total	3,354
Accumulated Depreciation	(257)
Gahanna, OH
Real Estate and Accumulated Depreciation
Encumbrances	(3,649)
Building and Tenant Improvements (initial cost)	4,191
Land	1,265
Costs Capitalized Subsequent to Acquisition and Valuation Provision	1,158
Building Improvements and Equipment	5,349
Land	1,265
Total	6,614
Accumulated Depreciation	(365)
Georgetown, KY
Real Estate and Accumulated Depreciation
Encumbrances	(2,437)
Building and Tenant Improvements (initial cost)	2,183
Land	875
Building Improvements and Equipment	2,183
Land	875
Total	3,058
Accumulated Depreciation	(199)
Gloversville, NY
Real Estate and Accumulated Depreciation
Encumbrances	(813)
Building and Tenant Improvements (initial cost)	1,317
Land	117
Costs Capitalized Subsequent to Acquisition and Valuation Provision	(18)
Building Improvements and Equipment	1,299
Land	117
Total	1,416
Accumulated Depreciation	(50)
Gloversville, NY
Real Estate and Accumulated Depreciation
Encumbrances	(1,314)
Building and Tenant Improvements (initial cost)	2,613
Land	151
Building Improvements and Equipment	2,613
Land	151
Total	2,764
Accumulated Depreciation	(123)
Gloversville, NY
Real Estate and Accumulated Depreciation
Encumbrances	(1,189)
Building and Tenant Improvements (initial cost)	1,790
Land	130
Building Improvements and Equipment	1,790
Land	130
Total	1,920
Accumulated Depreciation	(97)
Gloversville, NY
Real Estate and Accumulated Depreciation
Encumbrances	(939)
Building and Tenant Improvements (initial cost)	1,514
Land	154
Building Improvements and Equipment	1,514
Land	154
Total	1,668
Accumulated Depreciation	(70)
Golden, CO
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	6,164
Land	742
Building Improvements and Equipment	6,164
Land	742
Total	6,906
Accumulated Depreciation	(154)
Goshen, IN
Real Estate and Accumulated Depreciation
Encumbrances	(6,366)
Building and Tenant Improvements (initial cost)	6,509
Land	1,442
Costs Capitalized Subsequent to Acquisition and Valuation Provision	201
Building Improvements and Equipment	6,710
Land	1,442
Total	8,152
Accumulated Depreciation	(566)
Greenwood, SC
Real Estate and Accumulated Depreciation
Encumbrances	(1,689)
Building and Tenant Improvements (initial cost)	1,848
Land	166
Building Improvements and Equipment	1,848
Land	166
Total	2,014
Accumulated Depreciation	(75)
Greenwood, SC
Real Estate and Accumulated Depreciation
Encumbrances	(1,439)
Building and Tenant Improvements (initial cost)	1,232
Land	169
Building Improvements and Equipment	1,232
Land	169
Total	1,401
Accumulated Depreciation	(58)
Gresham, OR
Real Estate and Accumulated Depreciation
Encumbrances	(9,241)
Building and Tenant Improvements (initial cost)	8,740
Land	1,730
Costs Capitalized Subsequent to Acquisition and Valuation Provision	365
Building Improvements and Equipment	9,105
Land	1,730
Total	10,835
Accumulated Depreciation	(715)
Gurnee, IL
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	4,902
Land	1,337
Building Improvements and Equipment	4,902
Land	1,337
Total	6,239
Accumulated Depreciation	(312)
Hampstead, MD
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	34,969
Land	780
Building Improvements and Equipment	34,969
Land	780
Total	35,749
Accumulated Depreciation	(438)
Harrisonburg, VA
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	11,179
Land	1,455
Building Improvements and Equipment	11,179
Land	1,455
Total	12,634
Accumulated Depreciation	(355)
Harvard, IL
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	2,980
Land	1,157
Building Improvements and Equipment	2,980
Land	1,157
Total	4,137
Accumulated Depreciation	(17)
St. Louis, MO
Real Estate and Accumulated Depreciation
Encumbrances	(6,432)
Building and Tenant Improvements (initial cost)	5,815
Land	1,382
Building Improvements and Equipment	5,815
Land	1,382
Total	7,197
Accumulated Depreciation	(582)
Holland, MI
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	5,235
Land	489
Costs Capitalized Subsequent to Acquisition and Valuation Provision	428
Building Improvements and Equipment	5,663
Land	489
Total	6,152
Accumulated Depreciation	(969)
Holland, MI
Real Estate and Accumulated Depreciation
Encumbrances	(3,492)
Building and Tenant Improvements (initial cost)	3,475
Land	279
Costs Capitalized Subsequent to Acquisition and Valuation Provision	60
Building Improvements and Equipment	3,535
Land	279
Total	3,814
Accumulated Depreciation	(166)
Holland, MI
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	4,046
Land	497
Costs Capitalized Subsequent to Acquisition and Valuation Provision	(218)
Building Improvements and Equipment	3,828
Land	497
Total	4,325
Accumulated Depreciation	(592)
Houston, TX
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	7,790
Land	2,255
Building Improvements and Equipment	7,790
Land	2,255
Total	10,045
Accumulated Depreciation	(177)
Huntersville, NC
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	3,270
Land	1,061
Costs Capitalized Subsequent to Acquisition and Valuation Provision	35
Building Improvements and Equipment	3,305
Land	1,061
Total	4,366
Accumulated Depreciation	(170)
Idaho Falls, ID
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	2,735
Land	356
Building Improvements and Equipment	2,735
Land	356
Total	3,091
Accumulated Depreciation	(82)
Independence, VA
Real Estate and Accumulated Depreciation
Encumbrances	(1,571)
Building and Tenant Improvements (initial cost)	2,212
Land	226
Building Improvements and Equipment	2,212
Land	226
Total	2,438
Accumulated Depreciation	(153)
Jackson, MS
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	926
Land	218
Building Improvements and Equipment	926
Land	218
Total	1,144
Accumulated Depreciation	(161)
Jackson, MS
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	3,142
Land	750
Costs Capitalized Subsequent to Acquisition and Valuation Provision	565
Building Improvements and Equipment	3,707
Land	750
Total	4,457
Accumulated Depreciation	(612)
Jackson, TN
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	2,374
Land	230
Costs Capitalized Subsequent to Acquisition and Valuation Provision	142
Building Improvements and Equipment	2,516
Land	230
Total	2,746
Accumulated Depreciation	(88)
Janesville, WI
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	17,493
Land	828
Building Improvements and Equipment	17,493
Land	828
Total	18,321
Accumulated Depreciation	(59)
Jefferson, NC
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	2,875
Land	119
Building Improvements and Equipment	2,875
Land	119
Total	2,994
Accumulated Depreciation	(482)
Johnstown, NY
Real Estate and Accumulated Depreciation
Encumbrances	(813)
Building and Tenant Improvements (initial cost)	1,304
Land	178
Building Improvements and Equipment	1,304
Land	178
Total	1,482
Accumulated Depreciation	(54)
Johnstown, NY
Real Estate and Accumulated Depreciation
Encumbrances	(1,189)
Building and Tenant Improvements (initial cost)	1,595
Land	216
Costs Capitalized Subsequent to Acquisition and Valuation Provision	(3)
Building Improvements and Equipment	1,592
Land	216
Total	1,808
Accumulated Depreciation	(54)
Johnstown, NY
Real Estate and Accumulated Depreciation
Encumbrances	(970)
Building and Tenant Improvements (initial cost)	978
Land	198
Building Improvements and Equipment	978
Land	198
Total	1,176
Accumulated Depreciation	(54)
Johnstown, NY
Real Estate and Accumulated Depreciation
Encumbrances	(1,815)
Building and Tenant Improvements (initial cost)	1,467
Land	140
Building Improvements and Equipment	1,467
Land	140
Total	1,607
Accumulated Depreciation	(61)
Kansas City, MO
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	5,581
Land	703
Building Improvements and Equipment	5,581
Land	703
Total	6,284
Accumulated Depreciation	(168)
Kansas City, KS
Real Estate and Accumulated Depreciation
Encumbrances	(1,283)
Building and Tenant Improvements (initial cost)	1,125
Land	527
Building Improvements and Equipment	1,125
Land	527
Total	1,652
Accumulated Depreciation	(62)
Kentwood, MI
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	2,478
Land	407
Building Improvements and Equipment	2,478
Land	407
Total	2,885
Accumulated Depreciation	(55)
Lafayette, IN
Real Estate and Accumulated Depreciation
Encumbrances	(1,345)
Building and Tenant Improvements (initial cost)	2,280
Land	295
Costs Capitalized Subsequent to Acquisition and Valuation Provision	(47)
Building Improvements and Equipment	2,233
Land	295
Total	2,528
Accumulated Depreciation	(78)
Lafayette, IN
Real Estate and Accumulated Depreciation
Encumbrances	(2,284)
Building and Tenant Improvements (initial cost)	3,554
Land	410
Building Improvements and Equipment	3,554
Land	410
Total	3,964
Accumulated Depreciation	(221)
Lafayette, IN
Real Estate and Accumulated Depreciation
Encumbrances	(4,693)
Building and Tenant Improvements (initial cost)	8,135
Land	906
Costs Capitalized Subsequent to Acquisition and Valuation Provision	26
Building Improvements and Equipment	8,161
Land	906
Total	9,067
Accumulated Depreciation	(427)
Lansing, MI
Real Estate and Accumulated Depreciation
Encumbrances	(8,735)
Building and Tenant Improvements (initial cost)	8,164
Land	501
Building Improvements and Equipment	8,164
Land	501
Total	8,665
Accumulated Depreciation	(637)
Lansing, MI
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	4,077
Land	580
Building Improvements and Equipment	4,077
Land	580
Total	4,657
Accumulated Depreciation	(214)
Lansing, MI
Real Estate and Accumulated Depreciation
Encumbrances	(6,257)
Building and Tenant Improvements (initial cost)	7,162
Land	429
Building Improvements and Equipment	7,162
Land	429
Total	7,591
Accumulated Depreciation	(275)
Lansing, MI
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	5,209
Land	907
Building Improvements and Equipment	5,209
Land	907
Total	6,116
Accumulated Depreciation	(17)
Lewiston, ME
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	5,515
Land	173
Costs Capitalized Subsequent to Acquisition and Valuation Provision	360
Building Improvements and Equipment	5,875
Land	173
Total	6,048
Accumulated Depreciation	(1,057)
Lexington, NC
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	3,968
Land	232
Costs Capitalized Subsequent to Acquisition and Valuation Provision	135
Building Improvements and Equipment	4,103
Land	232
Total	4,335
Accumulated Depreciation	(340)
Londonderry, NH
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	6,683
Land	730
Building Improvements and Equipment	6,683
Land	730
Total	7,413
Accumulated Depreciation	(167)
Louisville, KY
Real Estate and Accumulated Depreciation
Encumbrances	(3,508)
Building and Tenant Improvements (initial cost)	3,875
Land	386
Costs Capitalized Subsequent to Acquisition and Valuation Provision	520
Building Improvements and Equipment	4,395
Land	386
Total	4,781
Accumulated Depreciation	(380)
Louisville, KY
Real Estate and Accumulated Depreciation
Encumbrances	(5,596)
Building and Tenant Improvements (initial cost)	6,182
Land	616
Costs Capitalized Subsequent to Acquisition and Valuation Provision	632
Building Improvements and Equipment	6,814
Land	616
Total	7,430
Accumulated Depreciation	(590)
Madison, TN
Real Estate and Accumulated Depreciation
Encumbrances	(6,844)
Building and Tenant Improvements (initial cost)	6,159
Land	1,655
Costs Capitalized Subsequent to Acquisition and Valuation Provision	892
Building Improvements and Equipment	7,051
Land	1,655
Total	8,706
Accumulated Depreciation	(737)
Malden, MA
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	2,817
Land	366
Building Improvements and Equipment	2,817
Land	366
Total	3,183
Accumulated Depreciation	(475)
Malden, MA
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	3,961
Land	507
Building Improvements and Equipment	3,961
Land	507
Total	4,468
Accumulated Depreciation	(668)
Marion, IA
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	2,257
Land	691
Costs Capitalized Subsequent to Acquisition and Valuation Provision	46
Building Improvements and Equipment	2,303
Land	691
Total	2,994
Accumulated Depreciation	(68)
Marion, IN
Real Estate and Accumulated Depreciation
Encumbrances	(3,191)
Building and Tenant Improvements (initial cost)	3,010
Land	243
Building Improvements and Equipment	3,010
Land	243
Total	3,253
Accumulated Depreciation	(169)
Marshall, MI
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	1,051
Land	199
Building Improvements and Equipment	1,051
Land	199
Total	1,250
Accumulated Depreciation	(36)
Mascot, TN
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	3,452
Land	385
Building Improvements and Equipment	3,452
Land	385
Total	3,837
Accumulated Depreciation	(14)
Salem, OH
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	6,849
Land	858
Building Improvements and Equipment	6,849
Land	858
Total	7,707
Accumulated Depreciation	(1,127)
Mayville, WI
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	4,118
Land	547
Costs Capitalized Subsequent to Acquisition and Valuation Provision	330
Building Improvements and Equipment	4,448
Land	547
Total	4,995
Accumulated Depreciation	(742)
Mebane, NC
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	4,570
Land	481
Building Improvements and Equipment	4,570
Land	481
Total	5,051
Accumulated Depreciation	(174)
Mebane, NC
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	4,148
Land	443
Building Improvements and Equipment	4,148
Land	443
Total	4,591
Accumulated Depreciation	(169)
Mebane, NC
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	4,999
Land	358
Building Improvements and Equipment	4,999
Land	358
Total	5,357
Accumulated Depreciation	(31)
Milwaukee, WI
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	4,090
Land	456
Building Improvements and Equipment	4,090
Land	456
Total	4,546
Accumulated Depreciation	(663)
Milwaukee, WI
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	5,283
Land	1,048
Costs Capitalized Subsequent to Acquisition and Valuation Provision	368
Building Improvements and Equipment	5,651
Land	1,048
Total	6,699
Accumulated Depreciation	(1,125)
Mishawaka, IN
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	3,108
Land	800
Costs Capitalized Subsequent to Acquisition and Valuation Provision	24
Building Improvements and Equipment	3,132
Land	800
Total	3,932
Accumulated Depreciation	(92)
Montgomery, IL
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	12,543
Land	2,190
Costs Capitalized Subsequent to Acquisition and Valuation Provision	62
Building Improvements and Equipment	12,605
Land	2,190
Total	14,795
Accumulated Depreciation	(424)
Mooresville, NC
Real Estate and Accumulated Depreciation
Encumbrances	(7,085)
Building and Tenant Improvements (initial cost)	7,411
Land	701
Costs Capitalized Subsequent to Acquisition and Valuation Provision	216
Building Improvements and Equipment	7,627
Land	701
Total	8,328
Accumulated Depreciation	(625)
Mt. Prospect, IL
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	2,988
Land	726
Building Improvements and Equipment	2,988
Land	726
Total	3,714
Accumulated Depreciation	(77)
Nashville, TN
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	3,601
Land	547
Building Improvements and Equipment	3,601
Land	547
Total	4,148
Accumulated Depreciation	(56)
Newark, DE
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	1,478
Land	197
Costs Capitalized Subsequent to Acquisition and Valuation Provision	137
Building Improvements and Equipment	1,615
Land	197
Total	1,812
Accumulated Depreciation	(333)
Newark, DE
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	2,479
Land	330
Costs Capitalized Subsequent to Acquisition and Valuation Provision	36
Building Improvements and Equipment	2,515
Land	330
Total	2,845
Accumulated Depreciation	(431)
New Berlin, WI
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	6,500
Land	1,068
Costs Capitalized Subsequent to Acquisition and Valuation Provision	98
Building Improvements and Equipment	6,598
Land	1,068
Total	7,666
Accumulated Depreciation	(102)
New Hope, MN
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	1,970
Land	1,919
Building Improvements and Equipment	1,970
Land	1,919
Total	3,889
Accumulated Depreciation	(34)
Lopatcong, NJ
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	1,400
Land	1,554
Costs Capitalized Subsequent to Acquisition and Valuation Provision	184
Building Improvements and Equipment	1,584
Land	1,554
Total	3,138
Accumulated Depreciation	(228)
Piscataway, NJ
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	5,655
Land	640
Costs Capitalized Subsequent to Acquisition and Valuation Provision	164
Building Improvements and Equipment	5,819
Land	640
Total	6,459
Accumulated Depreciation	(698)
Newton, NC
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	4,367
Land	732
Costs Capitalized Subsequent to Acquisition and Valuation Provision	86
Building Improvements and Equipment	4,453
Land	732
Total	5,185
Accumulated Depreciation	(542)
North Jackson, OH
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	4,427
Land	1,528
Building Improvements and Equipment	4,427
Land	1,528
Total	5,955
Accumulated Depreciation	(25)
North Jackson 2, OH
Real Estate and Accumulated Depreciation
Encumbrances	(7,775)
Building and Tenant Improvements (initial cost)	6,439
Land	486
Building Improvements and Equipment	6,439
Land	486
Total	6,925
Accumulated Depreciation	(591)
Norton, MA
Real Estate and Accumulated Depreciation
Encumbrances	(5,834)
Building and Tenant Improvements (initial cost)	6,740
Land	2,839
Building Improvements and Equipment	6,740
Land	2,839
Total	9,579
Accumulated Depreciation	(532)
Novi, MI
Real Estate and Accumulated Depreciation
Encumbrances	(3,066)
Building and Tenant Improvements (initial cost)	3,879
Land	252
Building Improvements and Equipment	3,879
Land	252
Total	4,131
Accumulated Depreciation	(198)
Ocala, FL
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	13,296
Land	731
Building Improvements and Equipment	13,296
Land	731
Total	14,027
Accumulated Depreciation	(295)
O'Fallon, MO
Real Estate and Accumulated Depreciation
Encumbrances	(3,210)
Building and Tenant Improvements (initial cost)	2,676
Land	1,242
Costs Capitalized Subsequent to Acquisition and Valuation Provision	69
Building Improvements and Equipment	2,745
Land	1,242
Total	3,987
Accumulated Depreciation	(239)
O'Hara, PA
Real Estate and Accumulated Depreciation
Encumbrances	(17,583)
Building and Tenant Improvements (initial cost)	18,875
Land	1,435
Costs Capitalized Subsequent to Acquisition and Valuation Provision	574
Building Improvements and Equipment	19,449
Land	1,435
Total	20,884
Accumulated Depreciation	(787)
Orangeburg, SC
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	2,653
Land	362
Building Improvements and Equipment	2,653
Land	362
Total	3,015
Accumulated Depreciation	(100)
Orlando, FL
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	4,839
Land	1,339
Building Improvements and Equipment	4,839
Land	1,339
Total	6,178
Accumulated Depreciation	(45)
Orlando, FL
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	1,996
Land	721
Building Improvements and Equipment	1,996
Land	721
Total	2,717
Accumulated Depreciation	(101)
Parsons, KS
Real Estate and Accumulated Depreciation
Encumbrances	(1,189)
Building and Tenant Improvements (initial cost)	1,053
Land	108
Building Improvements and Equipment	1,053
Land	108
Total	1,161
Accumulated Depreciation	(50)
Pensacola, FL
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	4,705
Land	282
Costs Capitalized Subsequent to Acquisition and Valuation Provision	68
Building Improvements and Equipment	4,773
Land	282
Total	5,055
Accumulated Depreciation	(807)
Pensacola, FL
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	206
Land	42
Costs Capitalized Subsequent to Acquisition and Valuation Provision	83
Building Improvements and Equipment	289
Land	42
Total	331
Accumulated Depreciation	(51)
Phenix City, AL
Real Estate and Accumulated Depreciation
Encumbrances	(1,752)
Building and Tenant Improvements (initial cost)	1,493
Land	276
Building Improvements and Equipment	1,493
Land	276
Total	1,769
Accumulated Depreciation	(85)
Pineville, NC
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	1,380
Land	392
Building Improvements and Equipment	1,380
Land	392
Total	1,772
Accumulated Depreciation	(79)
Warrendale, PA
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	6,437
Land	778
Costs Capitalized Subsequent to Acquisition and Valuation Provision	430
Building Improvements and Equipment	6,867
Land	778
Total	7,645
Accumulated Depreciation	(536)
Pocatello, ID
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	3,472
Land	399
Costs Capitalized Subsequent to Acquisition and Valuation Provision	135
Building Improvements and Equipment	3,607
Land	399
Total	4,006
Accumulated Depreciation	(785)
Portage, IN
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	5,416
Building Improvements and Equipment	5,416
Total	5,416
Accumulated Depreciation	(180)
Portland, TN
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	8,353
Land	1,662
Building Improvements and Equipment	8,353
Land	1,662
Total	10,015
Accumulated Depreciation	(526)
Portland, ME
Real Estate and Accumulated Depreciation
Encumbrances	(3,120)
Building and Tenant Improvements (initial cost)	3,727
Land	891
Building Improvements and Equipment	3,727
Land	891
Total	4,618
Accumulated Depreciation	(192)
Rapid City, SD
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	11,957
Land	2,306
Costs Capitalized Subsequent to Acquisition and Valuation Provision	524
Building Improvements and Equipment	12,481
Land	2,306
Total	14,787
Accumulated Depreciation	(2,724)
Muhlenberg TWP, PA
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	14,064
Land	843
Costs Capitalized Subsequent to Acquisition and Valuation Provision	13
Building Improvements and Equipment	14,077
Land	843
Total	14,920
Accumulated Depreciation	(706)
Rogers, MN
Real Estate and Accumulated Depreciation
Encumbrances	(12,050)
Building and Tenant Improvements (initial cost)	11,787
Land	1,671
Costs Capitalized Subsequent to Acquisition and Valuation Provision	238
Building Improvements and Equipment	12,025
Land	1,671
Total	13,696
Accumulated Depreciation	(1,429)
Rogers, AR
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	8,280
Land	1,072
Costs Capitalized Subsequent to Acquisition and Valuation Provision	99
Building Improvements and Equipment	8,379
Land	1,072
Total	9,451
Accumulated Depreciation	(569)
Round Rock, TX
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	3,399
Land	394
Costs Capitalized Subsequent to Acquisition and Valuation Provision	(54)
Building Improvements and Equipment	3,345
Land	394
Total	3,739
Accumulated Depreciation	(551)
Rural Hall, NC
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	5,664
Land	439
Costs Capitalized Subsequent to Acquisition and Valuation Provision	137
Building Improvements and Equipment	5,801
Land	439
Total	6,240
Accumulated Depreciation	(677)
Salem, OR
Real Estate and Accumulated Depreciation
Encumbrances	(3,340)
Building and Tenant Improvements (initial cost)	3,150
Land	599
Costs Capitalized Subsequent to Acquisition and Valuation Provision	161
Building Improvements and Equipment	3,311
Land	599
Total	3,910
Accumulated Depreciation	(312)
Salem, OR
Real Estate and Accumulated Depreciation
Encumbrances	(1,501)
Building and Tenant Improvements (initial cost)	1,471
Land	266
Costs Capitalized Subsequent to Acquisition and Valuation Provision	119
Building Improvements and Equipment	1,590
Land	266
Total	1,856
Accumulated Depreciation	(209)
Sauk Village, IL
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	5,516
Land	877
Building Improvements and Equipment	5,516
Land	877
Total	6,393
Accumulated Depreciation	(21)
Sergeant Bluff, IA
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	11,675
Land	736
Costs Capitalized Subsequent to Acquisition and Valuation Provision	36
Building Improvements and Equipment	11,711
Land	736
Total	12,447
Accumulated Depreciation	(2,886)
Seville, OH
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	6,662
Land	1,170
Costs Capitalized Subsequent to Acquisition and Valuation Provision	229
Building Improvements and Equipment	6,891
Land	1,170
Total	8,061
Accumulated Depreciation	(538)
Shannon, GA
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	12,969
Land	393
Building Improvements and Equipment	12,969
Land	393
Total	13,362
Accumulated Depreciation	(61)
South Holland, IL
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	3,900
Land	714
Building Improvements and Equipment	3,900
Land	714
Total	4,614
Accumulated Depreciation	(18)
Simpsonville, SC
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	3,003
Land	957
Costs Capitalized Subsequent to Acquisition and Valuation Provision	30
Building Improvements and Equipment	3,033
Land	957
Total	3,990
Accumulated Depreciation	(158)
Simpsonville, SC
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	3,418
Land	470
Building Improvements and Equipment	3,418
Land	470
Total	3,888
Accumulated Depreciation	(161)
Smithfield, NC
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	4,671
Land	613
Building Improvements and Equipment	4,671
Land	613
Total	5,284
Accumulated Depreciation	(295)
Smyrna, GA
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	3,286
Land	264
Building Improvements and Equipment	3,286
Land	264
Total	3,550
Accumulated Depreciation	(129)
South Bend, IN
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	4,834
Land	411
Building Improvements and Equipment	4,834
Land	411
Total	5,245
Accumulated Depreciation	(253)
Southfield, MI
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	4,196
Land	562
Building Improvements and Equipment	4,196
Land	562
Total	4,758
Accumulated Depreciation	(103)
Southfield, MI
Real Estate and Accumulated Depreciation
Land	354
Land	354
Total	354
Sparks, MD
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	3,577
Land	790
Costs Capitalized Subsequent to Acquisition and Valuation Provision	(146)
Building Improvements and Equipment	3,431
Land	790
Total	4,221
Accumulated Depreciation	(536)
Spartanburg, SC
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	6,471
Land	493
Building Improvements and Equipment	6,471
Land	493
Total	6,964
Accumulated Depreciation	(591)
Springfield, OH
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	6,432
Land	574
Building Improvements and Equipment	6,432
Land	574
Total	7,006
Accumulated Depreciation	(76)
Statham, GA
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	6,242
Land	588
Building Improvements and Equipment	6,242
Land	588
Total	6,830
Accumulated Depreciation	(236)
Sterling Heights, MI
Real Estate and Accumulated Depreciation
Encumbrances	(1,689)
Building and Tenant Improvements (initial cost)	4,197
Land	513
Costs Capitalized Subsequent to Acquisition and Valuation Provision	55
Building Improvements and Equipment	4,252
Land	513
Total	4,765
Accumulated Depreciation	(153)
Hazelwood, MO
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	5,436
Land	1,959
Costs Capitalized Subsequent to Acquisition and Valuation Provision	455
Building Improvements and Equipment	5,891
Land	1,959
Total	7,850
Accumulated Depreciation	(935)
Streetsboro, OH
Real Estate and Accumulated Depreciation
Encumbrances	(6,694)
Building and Tenant Improvements (initial cost)	5,481
Land	2,161
Costs Capitalized Subsequent to Acquisition and Valuation Provision	214
Building Improvements and Equipment	5,695
Land	2,161
Total	7,856
Accumulated Depreciation	(796)
Sun Prairie, WI
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	6,176
Land	2,360
Costs Capitalized Subsequent to Acquisition and Valuation Provision	(76)
Building Improvements and Equipment	6,100
Land	2,360
Total	8,460
Accumulated Depreciation	(431)
Tavares, FL
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	6,339
Land	722
Building Improvements and Equipment	6,339
Land	722
Total	7,061
Accumulated Depreciation	(1,386)
Toledo, OH
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	6,831
Land	213
Building Improvements and Equipment	6,831
Land	213
Total	7,044
Accumulated Depreciation	(259)
Twinsburg, OH
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	6,497
Land	590
Building Improvements and Equipment	6,497
Land	590
Total	7,087
Accumulated Depreciation	(1,014)
Vonore, TN
Real Estate and Accumulated Depreciation
Encumbrances	(9,392)
Building and Tenant Improvements (initial cost)	8,243
Land	2,355
Costs Capitalized Subsequent to Acquisition and Valuation Provision	85
Building Improvements and Equipment	8,328
Land	2,355
Total	10,683
Accumulated Depreciation	(916)
Waco, TX
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	1,448
Costs Capitalized Subsequent to Acquisition and Valuation Provision	30
Building Improvements and Equipment	1,478
Total	1,478
Accumulated Depreciation	(107)
Walker, MI
Real Estate and Accumulated Depreciation
Encumbrances	(4,434)
Building and Tenant Improvements (initial cost)	4,872
Land	855
Costs Capitalized Subsequent to Acquisition and Valuation Provision	118
Building Improvements and Equipment	4,990
Land	855
Total	5,845
Accumulated Depreciation	(452)
Ware Shoals, SC
Real Estate and Accumulated Depreciation
Encumbrances	(282)
Building and Tenant Improvements (initial cost)	197
Land	133
Building Improvements and Equipment	197
Land	133
Total	330
Accumulated Depreciation	(10)
Wichita, KS
Real Estate and Accumulated Depreciation
Encumbrances	(1,689)
Building and Tenant Improvements (initial cost)	1,835
Land	88
Building Improvements and Equipment	1,835
Land	88
Total	1,923
Accumulated Depreciation	(82)
Wichita, KS
Real Estate and Accumulated Depreciation
Encumbrances	(1,846)
Building and Tenant Improvements (initial cost)	1,931
Land	107
Building Improvements and Equipment	1,931
Land	107
Total	2,038
Accumulated Depreciation	(135)
Wichita, KS
Real Estate and Accumulated Depreciation
Encumbrances	(939)
Building and Tenant Improvements (initial cost)	904
Land	140
Building Improvements and Equipment	904
Land	140
Total	1,044
Accumulated Depreciation	(42)
Wichita, KS
Real Estate and Accumulated Depreciation
Encumbrances	(845)
Building and Tenant Improvements (initial cost)	869
Land	76
Building Improvements and Equipment	869
Land	76
Total	945
Accumulated Depreciation	(59)
Williamsport, PA
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	9,059
Land	688
Building Improvements and Equipment	9,059
Land	688
Total	9,747
Accumulated Depreciation	(209)
Woodstock, IL
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	3,796
Land	496
Building Improvements and Equipment	3,796
Land	496
Total	4,292
Accumulated Depreciation	(138)
Bardstown, KY
Real Estate and Accumulated Depreciation
Building and Tenant Improvements (initial cost)	2,399
Land	381
Building Improvements and Equipment	2,399
Land	381
Total	2,780
Accumulated Depreciation	$ (424)

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Selected Interim Financial Information (unaudited) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								9 Months Ended	12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Dec. 31, 2013	Dec. 31, 2012
Selected Interim Financial Information
Total revenue	$ 37,418	$ 34,644	$ 31,842	$ 29,988	$ 26,877	$ 20,878	$ 19,116	$ 17,181	$ 41,116	$ 133,893	$ 84,052
Income (loss) from continuing operations	1,126	265	(738)	(547)	(2,973)	(1,371)	(2,028)	(1,445)	(10,510)	106	(7,817)
Net income (loss) attributable to the common stockholders	$ 2,098	$ (2,147)	$ (2,410)	$ (1,775)	$ (3,372)	$ (5,262)	$ (2,235)	$ (1,942)	$ (5,831)	$ 5,522	$ (6,479)
Income (loss) per share-basic and diluted (in dollars per share)	$ 0.05	$ (0.05)	$ (0.06)	$ (0.04)	$ (0.10)	$ (0.18)	$ (0.11)	$ (0.12)	$ (0.44)	$ (0.10)	$ (0.51)

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Future Minimum Rents (Tables)

12 Months Ended

Dec. 31, 2013

Future Minimum Rents

Schedule of minimum lease payments receivable

Minimum lease payments receivable, excluding tenant reimbursement of expenses, under non-cancelable operating leases in effect as of December 31, 2013 are approximately as follows (in thousands):

2014	$	134,391
2015		121,243
2016		106,356
2017		85,455
2018		66,355
Thereafter		211,117

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Equity (Details) (USD $)	0 Months Ended		3 Months Ended	9 Months Ended	12 Months Ended			1 Months Ended	3 Months Ended								9 Months Ended	12 Months Ended			0 Months Ended	3 Months Ended		12 Months Ended		0 Months Ended													1 Months Ended			3 Months Ended							6 Months Ended	12 Months Ended			12 Months Ended
	Dec. 17, 2013	Dec. 18, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013	Dec. 31, 2012	Dec. 14, 2012 At The Market (ATM) Program	Nov. 30, 2011 Series A Preferred Stock	Dec. 31, 2013 Series A Preferred Stock	Sep. 30, 2013 Series A Preferred Stock	Jun. 30, 2013 Series A Preferred Stock	Mar. 31, 2013 Series A Preferred Stock	Dec. 31, 2012 Series A Preferred Stock	Sep. 30, 2012 Series A Preferred Stock	Jun. 30, 2012 Series A Preferred Stock	Mar. 31, 2012 Series A Preferred Stock	Dec. 31, 2011 Series A Preferred Stock	Dec. 31, 2013 Series A Preferred Stock	Dec. 31, 2012 Series A Preferred Stock	Nov. 02, 2011 Series A Preferred Stock	Apr. 16, 2013 Series B Preferred Stock	Jun. 30, 2013 Series B Preferred Stock	Sep. 30, 2013 Series B Preferred Stock	Dec. 31, 2013 Series B Preferred Stock	Dec. 31, 2012 Series B Preferred Stock	Jan. 15, 2014 Common Shares	Oct. 15, 2013 Common Shares	Jul. 15, 2013 Common Shares	Apr. 16, 2013 Common Shares	Jan. 22, 2013 Common Shares	Jan. 15, 2013 Common Shares	Oct. 15, 2012 Common Shares	Aug. 15, 2012 Common Shares	Jul. 13, 2012 Common Shares	May 29, 2012 Common Shares	Apr. 13, 2012 Common Shares	May 13, 2011 Common Shares	Apr. 19, 2011 Common Shares	Dec. 31, 2013 Common Shares	Nov. 30, 2013 Common Shares	Oct. 31, 2013 Common Shares	Sep. 30, 2013 Common Shares	Jun. 30, 2013 Common Shares	Mar. 31, 2013 Common Shares	Dec. 31, 2012 Common Shares	Sep. 30, 2012 Common Shares	Jun. 30, 2012 Common Shares	Mar. 31, 2012 Common Shares	Sep. 30, 2011 Common Shares	Dec. 31, 2013 Common Shares	Dec. 31, 2012 Common Shares	Apr. 20, 2011 Common Shares	Dec. 31, 2013 Common Shares At The Market (ATM) Program	Dec. 31, 2012 Common Shares At The Market (ATM) Program
Stockholders' Equity
Authorized shares of preferred stock									10,000,000				10,000,000					10,000,000	10,000,000	10,000,000				10,000,000	10,000,000
Preferred stock, par value (in dollars per share)									$ 0.01				$ 0.01					$ 0.01	$ 0.01	$ 0.01	$ 0.01			$ 0.01	$ 0.01
Number of shares sold								2,760,000													2,800,000									6,284,152			9,200,000		8,337,500			13,750,000												8,956,844			2,672,692	298,000
Shares issued pursuant to full exercise of the underwriters' overallotment option								360,000													300,000
Dividend rate (as a percent)								9.00%													6.625%
Issue price (in dollars per share)								$ 25.00													$ 25.00									$ 18.30			$ 14.15		$ 12.88		$ 13.00															$ 13.00
Net proceeds from sale of shares																	$ 69,000,000				$ 67,800,000			$ 70,000,000
Gross proceeds from sale of shares																					70,000,000
Underwriting discount incurred reflected as a reduction to additional paid-in capital																					2,200,000									4,900,000			5,500,000		4,600,000
Direct offering costs				19,537,000	8,713,000	11,136,000															200,000									200,000							16,900,000	12,500,000
Net proceeds from sale of common stock					169,747,000	242,947,000																								110,100,000			124,600,000		107,400,000		24,900,000	166,300,000															53,900,000	5,300,000
Gross proceeds from sale of common stock																														115,000,000			130,200,000		102,800,000			178,800,000															54,700,000	5,400,000
Indirect offering costs				78,000	27,000	68,000																													100,000																		800,000	100,000
Aggregate value of common stock available to be sold under the ATM																																																					14,900,000
Number of shares issued pursuant to the full exercise of underwriters' overallotment option																														819,672			1,200,000		1,087,500		2,062,500
Dividend declared (in dollars per share)									$ 0.5625	$ 0.5625	$ 0.5625	$ 0.5625	$ 0.5625	$ 0.5625	$ 0.5625	$ 0.5625		$ 2.25	$ 2.25
Dividend declared (in dollars per share)	$ 1.20	$ 1.26	$ 0.27		$ 0.10				$ 0.4140625													$ 0.3450500	$ 0.4140625	$ 1.1731750															$ 0.10	$ 0.10	$ 0.10	$ 0.30	$ 0.30	$ 0.30	$ 0.27	$ 0.27	$ 0.27	$ 0.26		$ 1.20	$ 1.07
Increase in dividend rate (as a percent)		5.00%
Aggregate value of common stock which may be sold through sales agents under the stock offering program							75,000,000
Issuance of shares to directors for their services																										2,554	2,607	2,602	2,418		2,851	2,876		3,108		3,776														10,181	12,611
Fair value of shares issued to directors for their services																										52,000	53,000	53,000	52,000		54,000	49,000		46,000		50,000														210,000	199,000
Number of days of average trailing stock price used to calculate number of shares of common stock granted					10 days
Proceeds from issuance of common stock at initial public offering				205,563,000																																	26,800,000												205,600,000
Formation transaction costs and offering costs incurred																																																	6,200,000
Portion of formation transaction costs and offering costs expensed																																																	3,700,000
Portion of formation transaction costs and offering costs deducted from the gross proceeds of the IPO																																																	2,500,000
Direct offering costs incurred reflected as a reduction to additional paid-in capital																														$ 200,000			$ 200,000		$ 500,000

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Equity Incentive Plan

12 Months Ended

Dec. 31, 2013

Equity Incentive Plan

Equity Incentive Plan

14. Equity Incentive Plan

        On April 1, 2011, the Company adopted, and the Company's stockholders approved, the 2011 Plan. The 2011 Plan provides for the issuance of equity-based awards, including stock options, stock appreciation rights, restricted stock, restricted stock units, unrestricted stock awards and other awards based on shares of the Company's common stock, such as LTIP units in the Operating Partnership, that may be made by the Company directly to the executive officers, directors, employees and other individuals providing bona fide services to or for the Company.

        Subject to certain adjustments identified within the 2011 Plan, the aggregate number of shares of the Company's common stock that were available for issuance under awards granted was 1,755,187 shares. At their annual meeting on May 6, 2013, the stockholders of the Company approved an amendment to the 2011 Plan that increased the number of shares of common stock that may be awarded under the 2011 Plan by 1,887,274 shares to an aggregate of 3,642,461 shares (7.5% of the shares of common stock and common units (including LTIP units) issued and outstanding as of March 27, 2013). Under the 2011 Plan, each LTIP unit awarded will be equivalent to an award of one share of common stock reserved under the 2011 Plan, thereby reducing the number of shares of common stock available for other equity awards on a one-for-one basis.

        Each stock option and stock appreciation right granted under the 2011 Plan will have a term of no longer than 10 years, and will have an exercise price that is no less than 100% of the fair market value of the Company's common stock on the date of grant of the award. Stock appreciation rights confer on the participant the right to receive cash, common stock or other property, as determined by the 2011 Plan administrator, equal to the excess of the fair market value of the Company's common stock on the date of exercise over the exercise price of the stock appreciation right. The other terms of stock options and stock appreciation rights granted by the Company will be determined by the 2011 Plan administrator.

        The 2011 Plan may be terminated, amended, modified or suspended at any time by the board of directors, subject to stockholder approval as required by law or stock exchange rules. The 2011 Plan expires on March 31, 2021.

        On September 20, 2011, the compensation committee of the Company's board of directors approved the OPP under the 2011 Plan to provide certain key employees of the Company or its affiliates with incentives to contribute to the growth and financial success of the Company. The OPP utilizes total stockholder return over a three-year measurement period as the performance measurement.

        Recipients of awards under the OPP will share in an outperformance pool if the Company's total stockholder return, including both share appreciation and dividends, exceeds an absolute hurdle over a three-year measurement period from September 20, 2011 to September 20, 2014 (the "measurement period"), based on a beginning value of $12.50 per share of the Company's common stock as well as a relative hurdle based on the MSCI US REIT Index. The aggregate reward that all recipients collectively can earn, as measured by the outperformance pool, is capped at $10.0 million.

        Provided the Company's increase in cumulative absolute total stockholder return over the three-year measurement period is equal to or greater than 25% (the "threshold percentage"), the outperformance pool will consist of 10% of the excess total stockholder return above a relative total stockholder return hurdle. The hurdle is equal to the total return of the MSCI US REIT Index plus five percentage points over the measurement period. No awards will be granted under the OPP if the Company's absolute total stockholder return is below the threshold percentage. If the Company's total stockholder return is equal to or in excess of the threshold percentage and greater than the relative total stockholder return hurdle, then the award recipients will be entitled to the payments described below.

        Each participant's award under the OPP is designated as a specified percentage of the aggregate outperformance pool. Assuming the applicable absolute and relative total stockholder return thresholds are achieved at the end of the measurement period, the outperformance pool will be calculated and then allocated among the award recipients in accordance with each individual's percentage. The award will be paid in the form of fully vested shares of the Company's common stock, unless the compensation committee elects, with the award recipient's consent, to issue the award recipient other securities or to make a cash payment to the award recipient equal to the award recipient's share of the outperformance pool. The number of shares of common stock earned by each award recipient will be determined at the end of the measurement period by dividing the recipient's share of the outperformance pool by the closing price of the Company's common stock on the valuation date. On September 26, 2011, the compensation committee awarded 100% of the interests in the OPP to key employees of the Company.

        The awards provided to the employees will vest 100% at the end of the measurement period provided that the award recipient is a service provider to the Company. To the extent the employee is terminated without cause, the awards will have vested based on the number of days during the measurement period that they are considered a service provider to the Company.

        The OPP awards were valued at approximately $1.2 million utilizing a Monte Carlo simulation to estimate the probability of the performance conditions being satisfied. The Monte Carlo simulation used a statistical formula underlying the Black-Scholes and binomial formulas and such simulation was run approximately 100,000 times. For each simulation, the payoff is calculated at the settlement date, which is then discounted to the award date at a risk-free interest rate. The average of the values over all simulations is the expected value of the award on the award date. Assumptions used in the valuations included (i) factors associated with the underlying performance of the Company's stock price and total stockholder return over the term of the performance awards including total stock return volatility and risk-free interest and (ii) factors associated with the relative performance of the Company's stock price and total stockholder return when compared to the MSCI US REIT Index. The valuation was performed in a risk-neutral framework, so no assumption was made with respect to an equity risk premium. The fair value of the OPP awards was estimated on the date of grant using the following assumptions in the Monte- Carlo valuation: expected price volatility for the Company and the MSCI US REIT Index of 55% and 59.3%, respectively, and a risk free rate of 0.3423%. The expense associated with the value of the OPP awards will be amortized on a straight-line basis over the measurement period. The Company recognized $0.4 million, $0.4 million and $0.1 million in compensation expense associated with the OPP during the years ended December 31, 2013, December 31, 2012 and the period from April 20, 2011 to December 31, 2011, respectively.

        The Company issued 106,268, 87,025 and 80,809 shares of restricted stock and 187,569, 223,985 and 200,441 of LTIP units during the years ended December 31, 2013, December 31, 2012 and the period from April 20, 2011 to December 31, 2011, respectively. Dividends paid on both vested and unvested shares of restricted stock are charged directly to common stock dividends in excess of earnings on the Consolidated Balance Sheets. Non-cash compensation expense associated with shares issued to directors, restricted stock, LTIP units, and the OPP was approximately $3.0 million, $1.9 million and $0.7 million for the years ended December 31, 2013, December 31, 2012 and the period April 20, 2011 to December 31, 2011, respectively. The unrecognized compensation expense associated with the LTIP units, the restricted stock, and the OPP awards was $5.2 million, $2.5 million and $0.3 million, respectively, at December 31, 2013 and is expected to be recognized over a weighted average period of approximately 3.3 years. The unrecognized compensation expense associated with the LTIP units, the restricted stock, and the OPP awards was $3.5 million, $1.5 million and $0.7 million, respectively, at December 31, 2012 and is expected to be recognized over a weighted average period of approximately 3.5 years. As of December 31, 2013 and December 31, 2012, there were 214,389 and 150,114 of unvested restricted stock and 368,760 and 301,043 of LTIP units outstanding, respectively.

        At December 31, 2013 and December 31, 2012, the number of shares available for issuance under the 2011 Plan was 2,778,779 and 1,175,362, respectively. This does not include an allocation for the OPP as the awards were not determinable as of December 31, 2013 and December 31, 2012. Additionally, there have been no shares or units issued under the OPP as of December 31, 2013.

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Schedule 3-Real Estate and Accumulated Depreciation

12 Months Ended

Dec. 31, 2013

Schedule 3-Real Estate and Accumulated Depreciation

Schedule 3-Real Estate and Accumulated Depreciation

STAG Industrial, Inc.
Schedule 3—Real Estate and Accumulated Depreciation
December 31, 2013
(in thousands)

City/State	Encumbrances(1)			Building and Tenant Improvements (initial cost)		Land		Costs Capitalized Subsequent to Acquisition and Valuation Provision			Building Improvements and Equipment		Land		Total		Accumulated Depreciation			Acq Date		Depreciable Lives (Years)
Albion, IN		—			93		67		—			93		67		160		(17	)		2006		(2	)
Albion, IN		—			932		103		—			932		103		1,035		(169	)		2006		(2	)
Albion, IN		—			1,107		55		—			1,107		55		1,162		(201	)		2006		(2	)
Albion, IN		—			970		332		—			970		332		1,302		(176	)		2006		(2	)
Albion, IN		—			1,397		52		—			1,397		52		1,449		(253	)		2006		(2	)
Albion, IN		—			1,528		126		—			1,528		126		1,654		(277	)		2006		(2	)
Kendallville, IN		—			1,510		142		—			1,510		142		1,652		(273	)		2006		(2	)
Albion, IN		—			710		187		—			710		187		897		(129	)		2006		(2	)
Alexandria, MN		—			4,568		960		151			4,719		960		5,679		(398	)		2011		(2	)
Appleton, WI		—			3,916		495		191			4,107		495		4,602		(693	)		2007		(2	)
Arlington, TX		—			2,455		413		(45	)		2,410		413		2,823		(394	)		2007		(2	)
Arlington, TX		—			6,151		1,246		—			6,151		1,246		7,397		(289	)		2012		(2	)
Atlanta, GA		—			7,437		917		298			7,735		917		8,652		(318	)		2012		(2	)
Auburn Hills, MI		—			2,246		224		(4	)		2,242		224		2,466		(77	)		2012		(2	)
Avon, CT		—			2,750		336		—			2,750		336		3,086		(127	)		2012		(2	)
Belfast, ME		—			10,728		1,883		383			11,111		1,883		12,994		(921	)		2011		(2	)
Bellevue, OH		—			3,621		381		—			3,621		381		4,002		(181	)		2012		(2	)
Belvidere, IL		—			3,956		733		—			3,956		733		4,689		(78	)		2013		(2	)
Belvidere, IL		—			3,436		1,310		—			3,436		1,310		4,746		(91	)		2013		(2	)
Belvidere, IL		—			2,310		538		—			2,310		538		2,848		(51	)		2013		(2	)
Belvidere, IL		—			6,899		670		—			6,899		670		7,569		(116	)		2013		(2	)
Belvidere, IL		—			4,321		668		—			4,321		668		4,989		(91	)		2013		(2	)
Belvidere, IL		—			3,730		866		—			3,730		866		4,596		(73	)		2013		(2	)
Belvidere, IL		—			2,808		586		—			2,808		586		3,394		(67	)		2013		(2	)
Belvidere, IL		—			8,340		1,542		—			8,340		1,542		9,882		(192	)		2013		(2	)
Belvidere, IL		—			71		216		—			71		216		287		(12	)		2013		(2	)
Boardman, OH		—			3,482		282		593			4,075		282		4,357		(648	)		2007		(2	)
Boardman, OH		—			1,979		192		359			2,338		192		2,530		(329	)		2007		(2	)
Buena Vista, VA		—			2,500		534		—			2,500		534		3,034		(114	)		2012		(2	)
Buffalo, NY		—			2,924		146		—			2,924		146		3,070		(129	)		2012		(2	)
Canton, OH		—			5,078		586		128			5,206		586		5,792		(981	)		2007		(2	)
Catoosa, OK		—			3,937		—		—			3,937		—		3,937		(64	)		2013		(2	)
Charlotte, NC		(12,541	)		10,239		3,535		525			10,764		3,535		14,299		(994	)		2011		(2	)
Charlotte, NC		(15,830	)		12,818		2,734		161			12,979		2,734		15,713		(1,277	)		2011		(2	)
Cheektowaga, NY		—			2,757		216		395			3,152		216		3,368		(293	)		2011		(2	)
Chesterfield, MI		—			1,169		207		62			1,231		207		1,438		(301	)		2007		(2	)
Chesterfield, MI		—			798		150		15			813		150		963		(133	)		2007		(2	)
Chesterfield, MI		—			802		151		131			933		151		1,084		(154	)		2007		(2	)
Chesterfield, MI		—			5,304		942		972			6,276		942		7,218		(1,293	)		2007		(2	)
Chicopee, MA		—			5,867		504		—			5,867		504		6,371		(243	)		2012		(2	)
Chippewa Falls, WI		—			2,303		133		—			2,303		133		2,436		(142	)		2011		(2	)
Chippewa Falls, WI		—			544		44		—			544		44		588		(33	)		2011		(2	)
Cincinnati, OH		—			5,172		384		1,751			6,923		384		7,307		(1,142	)		2007		(2	)
Cleveland, TN		(2,964	)		3,161		554		84			3,245		554		3,799		(260	)		2011		(2	)
West Columbia, SC		—			6,988		715		102			7,090		715		7,805		(179	)		2013		(2	)
Conyers, GA		(3,928	)		4,142		969		80			4,222		969		5,191		(331	)		2011		(2	)
Dallas, GA		—			1,712		475		—			1,712		475		2,187		(78	)		2012		(2	)
LaGrange, GA		—			3,175		240		41			3,216		240		3,456		(354	)		2011		(2	)
Danville, KY		—			11,814		965		997			12,811		965		13,776		(1,122	)		2011		(2	)
Daytona Beach, FL		—			875		1,237		740			1,615		1,237		2,852		(315	)		2007		(2	)
Dayton, OH		—			3,650		391		624			4,274		391		4,665		(510	)		2007		(2	)
DeKalb, IL		—			4,568		489		—			4,568		489		5,057		(115	)		2013		(2	)
De Pere, WI		—			6,144		525		—			6,144		525		6,669		(265	)		2012		(2	)
Duncan, SC		—			11,352		1,002		44			11,396		1,002		12,398		(519	)		2012		(2	)
Duncan, SC		—			6,928		709		—			6,928		709		7,637		(359	)		2012		(2	)
Edgefield, SC		—			938		220		—			938		220		1,158		(52	)		2012		(2	)
Elkhart, IN		—			210		25		14			224		25		249		(45	)		2007		(2	)
Elkhart, IN		—			3,567		422		161			3,728		422		4,150		(628	)		2007		(2	)
El Paso, TX		—			3,096		—		373			3,469		—		3,469		(137	)		2012		(2	)
East Windsor, CT		(3,360	)		4,713		348		447			5,160		348		5,508		(403	)		2012		(2	)
Lexington, VA		—			445		59		—			445		59		504		(77	)		2007		(2	)
Fairfield, VA		—			2,274		295		177			2,451		295		2,746		(463	)		2007		(2	)
Farmington, NY		—			5,342		410		12			5,354		410		5,764		(908	)		2007		(2	)
Franklin, IN		—			12,042		2,479		—			12,042		2,479		14,521		(713	)		2012		(2	)
Fort Worth, TX		(2,271	)		2,965		389		—			2,965		389		3,354		(257	)		2011		(2	)
Gahanna, OH		(3,649	)		4,191		1,265		1,158			5,349		1,265		6,614		(365	)		2011		(2	)
Georgetown, KY		(2,437	)		2,183		875		—			2,183		875		3,058		(199	)		2011		(2	)
Gloversville, NY		(813	)		1,317		117		(18	)		1,299		117		1,416		(50	)		2012		(2	)
Gloversville, NY		(1,314	)		2,613		151		—			2,613		151		2,764		(123	)		2012		(2	)
Gloversville, NY		(1,189	)		1,790		130		—			1,790		130		1,920		(97	)		2012		(2	)
Gloversville, NY		(939	)		1,514		154		—			1,514		154		1,668		(70	)		2012		(2	)
Golden, CO		—			6,164		742		—			6,164		742		6,906		(154	)		2013		(2	)
Goshen, IN		(6,366	)		6,509		1,442		201			6,710		1,442		8,152		(566	)		2011		(2	)
Greenwood, SC		(1,689	)		1,848		166		—			1,848		166		2,014		(75	)		2012		(2	)
Greenwood, SC		(1,439	)		1,232		169		—			1,232		169		1,401		(58	)		2012		(2	)
Gresham, OR		(9,241	)		8,740		1,730		365			9,105		1,730		10,835		(715	)		2011		(2	)
Gurnee, IL		—			4,902		1,337		—			4,902		1,337		6,239		(312	)		2012		(2	)
Hampstead, MD		—			34,969		780		—			34,969		780		35,749		(438	)		2013		(2	)
Harrisonburg, VA		—			11,179		1,455		—			11,179		1,455		12,634		(355	)		2012		(2	)
Harvard, IL		—			2,980		1,157		—			2,980		1,157		4,137		(17	)		2013		(2	)
St. Louis, MO		(6,432	)		5,815		1,382		—			5,815		1,382		7,197		(582	)		2011		(2	)
Holland, MI		—			5,235		489		428			5,663		489		6,152		(969	)		2007		(2	)
Holland, MI		(3,492	)		3,475		279		60			3,535		279		3,814		(166	)		2012		(2	)
Holland, MI		—			4,046		497		(218	)		3,828		497		4,325		(592	)		2007		(2	)
Houston, TX		—			7,790		2,255		—			7,790		2,255		10,045		(177	)		2013		(2	)
Huntersville, NC		—			3,270		1,061		35			3,305		1,061		4,366		(170	)		2012		(2	)
Idaho Falls, ID		—			2,735		356		—			2,735		356		3,091		(82	)		2013		(2	)
Independence, VA		(1,571	)		2,212		226		—			2,212		226		2,438		(153	)		2012		(2	)
Jackson, MS		—			926		218		—			926		218		1,144		(161	)		2007		(2	)
Jackson, MS		—			3,142		750		565			3,707		750		4,457		(612	)		2007		(2	)
Jackson, TN		—			2,374		230		142			2,516		230		2,746		(88	)		2012		(2	)
Janesville, WI		—			17,493		828		—			17,493		828		18,321		(59	)		2013		(2	)
Jefferson, NC		—			2,875		119		—			2,875		119		2,994		(482	)		2007		(2	)
Johnstown, NY		(813	)		1,304		178		—			1,304		178		1,482		(54	)		2012		(2	)
Johnstown, NY		(1,189	)		1,595		216		(3	)		1,592		216		1,808		(54	)		2012		(2	)
Johnstown, NY		(970	)		978		198		—			978		198		1,176		(54	)		2012		(2	)
Johnstown, NY		(1,815	)		1,467		140		—			1,467		140		1,607		(61	)		2012		(2	)
Kansas City, MO		—			5,581		703		—			5,581		703		6,284		(168	)		2012		(2	)
Kansas City, KS		(1,283	)		1,125		527		—			1,125		527		1,652		(62	)		2012		(2	)
Kentwood, MI		—			2,478		407		—			2,478		407		2,885		(55	)		2013		(2	)
Lafayette, IN		(1,345	)		2,280		295		(47	)		2,233		295		2,528		(78	)		2012		(2	)
Lafayette, IN		(2,284	)		3,554		410		—			3,554		410		3,964		(221	)		2012		(2	)
Lafayette, IN		(4,693	)		8,135		906		26			8,161		906		9,067		(427	)		2012		(2	)
Lansing, MI		(8,735	)		8,164		501		—			8,164		501		8,665		(637	)		2011		(2	)
Lansing, MI		—			4,077		580		—			4,077		580		4,657		(214	)		2012		(2	)
Lansing, MI		(6,257	)		7,162		429		—			7,162		429		7,591		(275	)		2012		(2	)
Lansing, MI		—			5,209		907		—			5,209		907		6,116		(17	)		2013		(2	)
Lewiston, ME		—			5,515		173		360			5,875		173		6,048		(1,057	)		2007		(2	)
Lexington, NC		—			3,968		232		135			4,103		232		4,335		(340	)		2011		(2	)
Londonderry, NH		—			6,683		730		—			6,683		730		7,413		(167	)		2013		(2	)
Louisville, KY		(3,508	)		3,875		386		520			4,395		386		4,781		(380	)		2011		(2	)
Louisville, KY		(5,596	)		6,182		616		632			6,814		616		7,430		(590	)		2011		(2	)
Madison, TN		(6,844	)		6,159		1,655		892			7,051		1,655		8,706		(737	)		2011		(2	)
Malden, MA		—			2,817		366		—			2,817		366		3,183		(475	)		2007		(2	)
Malden, MA		—			3,961		507		—			3,961		507		4,468		(668	)		2007		(2	)
Marion, IA		—			2,257		691		46			2,303		691		2,994		(68	)		2013		(2	)
Marion, IN		(3,191	)		3,010		243		—			3,010		243		3,253		(169	)		2012		(2	)
Marshall, MI		—			1,051		199		—			1,051		199		1,250		(36	)		2013		(2	)
Mascot, TN		—			3,452		385		—			3,452		385		3,837		(14	)		2013		(2	)
Salem, OH		—			6,849		858		—			6,849		858		7,707		(1,127	)		2006		(2	)
Mayville, WI		—			4,118		547		330			4,448		547		4,995		(742	)		2007		(2	)
Mebane, NC		—			4,570		481		—			4,570		481		5,051		(174	)		2012		(2	)
Mebane, NC		—			4,148		443		—			4,148		443		4,591		(169	)		2012		(2	)
Mebane, NC		—			4,999		358		—			4,999		358		5,357		(31	)		2013		(2	)
Milwaukee, WI		—			4,090		456		—			4,090		456		4,546		(663	)		2007		(2	)
Milwaukee, WI		—			5,283		1,048		368			5,651		1,048		6,699		(1,125	)		2007		(2	)
Mishawaka, IN		—			3,108		800		24			3,132		800		3,932		(92	)		2013		(2	)
Montgomery, IL		—			12,543		2,190		62			12,605		2,190		14,795		(424	)		2012		(2	)
Mooresville, NC		(7,085	)		7,411		701		216			7,627		701		8,328		(625	)		2011		(2	)
Mt. Prospect, IL		—			2,988		726		—			2,988		726		3,714		(77	)		2013		(2	)
Nashville, TN		—			3,601		547		—			3,601		547		4,148		(56	)		2013		(2	)
Newark, DE		—			1,478		197		137			1,615		197		1,812		(333	)		2007		(2	)
Newark, DE		—			2,479		330		36			2,515		330		2,845		(431	)		2007		(2	)
New Berlin, WI		—			6,500		1,068		98			6,598		1,068		7,666		(102	)		2013		(2	)
New Hope, MN		—			1,970		1,919		—			1,970		1,919		3,889		(34	)		2013		(2	)
Lopatcong, NJ		—			1,400		1,554		184			1,584		1,554		3,138		(228	)		2011		(2	)
Piscataway, NJ		—			5,655		640		164			5,819		640		6,459		(698	)		2011		(2	)
Newton, NC		—			4,367		732		86			4,453		732		5,185		(542	)		2011		(2	)
North Jackson, OH		—			4,427		1,528		—			4,427		1,528		5,955		(25	)		2013		(2	)
North Jackson, OH		(7,775	)		6,439		486		—			6,439		486		6,925		(591	)		2011		(2	)
Norton, MA		(5,834	)		6,740		2,839		—			6,740		2,839		9,579		(532	)		2011		(2	)
Novi, MI		(3,066	)		3,879		252		—			3,879		252		4,131		(198	)		2012		(2	)
Ocala, FL		—			13,296		731		—			13,296		731		14,027		(295	)		2013		(2	)
O'Fallon, MO		(3,210	)		2,676		1,242		69			2,745		1,242		3,987		(239	)		2011		(2	)
O'Hara, PA		(17,583	)		18,875		1,435		574			19,449		1,435		20,884		(787	)		2012		(2	)
Orangeburg, SC		—			2,653		362		—			2,653		362		3,015		(100	)		2013		(2	)
Orlando, FL		—			4,839		1,339		—			4,839		1,339		6,178		(45	)		2013		(2	)
Orlando, FL		—			1,996		721		—			1,996		721		2,717		(101	)		2012		(2	)
Parsons, KS		(1,189	)		1,053		108		—			1,053		108		1,161		(50	)		2012		(2	)
Pensacola, FL		—			4,705		282		68			4,773		282		5,055		(807	)		2007		(2	)
Pensacola, FL		—			206		42		83			289		42		331		(51	)		2007		(2	)
Phenix City, AL		(1,752	)		1,493		276		—			1,493		276		1,769		(85	)		2012		(2	)
Pineville, NC		—			1,380		392		—			1,380		392		1,772		(79	)		2012		(2	)
Warrendale, PA		—			6,437		778		430			6,867		778		7,645		(536	)		2011		(2	)
Pocatello, ID		—			3,472		399		135			3,607		399		4,006		(785	)		2007		(2	)
Portage, IN		—			5,416		—		—			5,416		—		5,416		(180	)		2012		(2	)
Portland, TN		—			8,353		1,662		—			8,353		1,662		10,015		(526	)		2012		(2	)
Portland, ME		(3,120	)		3,727		891		—			3,727		891		4,618		(192	)		2012		(2	)
Rapid City, SD		—			11,957		2,306		524			12,481		2,306		14,787		(2,724	)		2007		(2	)
Muhlenberg TWP, PA		—			14,064		843		13			14,077		843		14,920		(706	)		2012		(2	)
Rogers, MN		(12,050	)		11,787		1,671		238			12,025		1,671		13,696		(1,429	)		2011		(2	)
Rogers, AR		—			8,280		1,072		99			8,379		1,072		9,451		(569	)		2011		(2	)
Round Rock, TX		—			3,399		394		(54	)		3,345		394		3,739		(551	)		2007		(2	)
Rural Hall, NC		—			5,664		439		137			5,801		439		6,240		(677	)		2011		(2	)
Salem, OR		(3,340	)		3,150		599		161			3,311		599		3,910		(312	)		2011		(2	)
Salem, OR		(1,501	)		1,471		266		119			1,590		266		1,856		(209	)		2011		(2	)
Sauk Village, IL		—			5,516		877		—			5,516		877		6,393		(21	)		2013		(2	)
Sergeant Bluff, IA		—			11,675		736		36			11,711		736		12,447		(2,886	)		2007		(2	)
Seville, OH		—			6,662		1,170		229			6,891		1,170		8,061		(538	)		2011		(2	)
Shannon, GA		—			12,969		393		—			12,969		393		13,362		(61	)		2013		(2	)
South Holland, IL		—			3,900		714		—			3,900		714		4,614		(18	)		2013		(2	)
Simpsonville, SC		—			3,003		957		30			3,033		957		3,990		(158	)		2012		(2	)
Simpsonville, SC		—			3,418		470		—			3,418		470		3,888		(161	)		2012		(2	)
Smithfield, NC		—			4,671		613		—			4,671		613		5,284		(295	)		2011		(2	)
Smyrna, GA		—			3,286		264		—			3,286		264		3,550		(129	)		2012		(2	)
South Bend, IN		—			4,834		411		—			4,834		411		5,245		(253	)		2012		(2	)
Southfield, MI		—			4,196		562		—			4,196		562		4,758		(103	)		2013		(2	)
Southfield, MI		—			—		354		—			—		354		354		—			2013		(2	)
Sparks, MD		—			3,577		790		(146	)		3,431		790		4,221		(536	)		2007		(2	)
Spartanburg, SC		—			6,471		493		—			6,471		493		6,964		(591	)		2012		(2	)
Springfield, OH		—			6,432		574		—			6,432		574		7,006		(76	)		2013		(2	)
Statham, GA		—			6,242		588		—			6,242		588		6,830		(236	)		2012		(2	)
Sterling Heights, MI		(1,689	)		4,197		513		55			4,252		513		4,765		(153	)		2012		(2	)
Hazelwood, MO		—			5,436		1,959		455			5,891		1,959		7,850		(935	)		2006		(2	)
Streetsboro, OH		(6,694	)		5,481		2,161		214			5,695		2,161		7,856		(796	)		2011		(2	)
Sun Prairie, WI		—			6,176		2,360		(76	)		6,100		2,360		8,460		(431	)		2011		(2	)
Tavares, FL		—			6,339		722		—			6,339		722		7,061		(1,386	)		2006		(2	)
Toledo, OH		—			6,831		213		—			6,831		213		7,044		(259	)		2012		(2	)
Twinsburg, OH		—			6,497		590		—			6,497		590		7,087		(1,014	)		2007		(2	)
Vonore, TN		(9,392	)		8,243		2,355		85			8,328		2,355		10,683		(916	)		2011		(2	)
Waco, TX		—			1,448		—		30			1,478		—		1,478		(107	)		2011		(2	)
Walker, MI		(4,434	)		4,872		855		118			4,990		855		5,845		(452	)		2011		(2	)
Ware Shoals, SC		(282	)		197		133		—			197		133		330		(10	)		2012		(2	)
Wichita, KS		(1,689	)		1,835		88		—			1,835		88		1,923		(82	)		2012		(2	)
Wichita, KS		(1,846	)		1,931		107		—			1,931		107		2,038		(135	)		2012		(2	)
Wichita, KS		(939	)		904		140		—			904		140		1,044		(42	)		2012		(2	)
Wichita, KS		(845	)		869		76		—			869		76		945		(59	)		2012		(2	)
Williamsport, PA		—			9,059		688		—			9,059		688		9,747		(209	)		2013		(2	)
Woodstock, IL		—			3,796		496		—			3,796		496		4,292		(138	)		2012		(2	)
Bardstown, KY		—			2,399		381		—			2,399		381		2,780		(424	)		2007		(2	)
Total		(225,303	)(1)		924,075		134,399		20,572			944,647		134,399		1,079,046		(71,653	)

(1)

Balance excludes the unamortized balance of historical fair value adjustments of $288.

(2)

Depreciation expense is computed using the straight-line method based on the following useful lives:

Buildings	40 years
Building and land improvements	5 - 20 years
Tenant improvements	Shorter of useful life or terms of related lease

        As of December 31, 2013, the aggregate cost for federal income tax purposes of investments in real estate was approximately $1.4 billion.

STAG Industrial, Inc. and STAG Predecessor Group

Real Estate and Accumulated Depreciation

December 31, 2013

(in thousands)

        A summary of activity for real estate and accumulated depreciation is as follows:

	STAG Industrial, Inc.									STAG Predecessor Group
	Year ended December 31, 2013			Year ended December 31, 2012			Period from April 20, 2011 to December 31, 2011			Period from January 1, 2011 to April 19, 2011
Real Estate:
Balance at beginning of period	$	816,227		$	502,258		$	210,225		$	210,186
Additions during period
Other acquisitions		266,389			322,719			292,426			—
Improvements, etc.		6,757			3,541			4,513			39
Other additions		—			—			—			—
Deductions during period
Cost of real estate sold		(9,073	)		(8,309	)		(4,544	)		—
Write-off of tenant improvements		(1,254	)		(576	)		(362	)		—
Asset Impairments		—			(3,406	)		—			—
Balance at the end of the period	$	1,079,046		$	816,227		$	502,258		$	210,225
Accumulated Depreciation:
Balance at beginning of period	$	46,175		$	30,004		$	20,959		$	19,261
Additions during period
Depreciation and amortization expense		27,492			18,174			9,618			1,698
Other additions		—			—			—			—
Deductions during period
Disposals		(2,014	)		(1,885	)		(573	)		—
Other reductions		—			(118	)		—			—
Balance at the end of the period	$	71,653		$	46,175		$	30,004		$	20,959

XML

Use of Derivative Financial Instruments (Details 3) (USD $)	9 Months Ended	12 Months Ended		3 Months Ended	9 Months Ended	12 Months Ended	3 Months Ended
	Dec. 31, 2011	Dec. 31, 2013	Dec. 31, 2012	Apr. 19, 2011 STAG Predecessor Group	Dec. 31, 2011 Wells Fargo Master Loan Swap	Dec. 31, 2012 Wells Fargo Master Loan Swap	Apr. 19, 2011 Wells Fargo Master Loan Swap STAG Predecessor Group
Cash Flow Hedges of Interest Rate Risk
Additional amount reclassified from accumulated other comprehensive income (loss) as an increase to interest expense over the next twelve months		$ (2,300,000)
Amount of income (loss) recognized in accumulated other comprehensive income (loss) on interest rate swaps (effective portion)		3,032,000	(608,000)
Amount of loss reclassified from accumulated other comprehensive income (loss) into income (loss) as interest expense (effective portion)		1,373,000	128,000
Gains relating to the change in fair market value of the interest rate swaps (loss)	2,179,000		215,000	762,000	2,200,000	200,000	800,000
Credit-risk-related Contingent Features
Fair values of the interest rate swaps in a net asset position		4,200,000
Accrued interest expense included in fair values of the interest rate swaps in a net asset position		200,000
Value of adjustment for nonperformance risk		$ 300,000

XML

Summary of Significant Accounting Policies (Details 2) (USD $)	0 Months Ended		3 Months Ended	9 Months Ended	12 Months Ended		3 Months Ended	9 Months Ended	12 Months Ended		3 Months Ended		12 Months Ended	3 Months Ended	12 Months Ended
	Dec. 17, 2013	Dec. 18, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013 Series A Preferred Stock	Dec. 31, 2011 Series A Preferred Stock	Dec. 31, 2013 Series A Preferred Stock	Dec. 31, 2012 Series A Preferred Stock	Jun. 30, 2013 Series B Preferred Stock	Sep. 30, 2013 Series B Preferred Stock	Dec. 31, 2013 Series B Preferred Stock	Apr. 19, 2011 STAG Predecessor Group	Dec. 31, 2013 Buildings	Dec. 31, 2013 Building and land improvements Minimum	Dec. 31, 2013 Building and land improvements Maximum
Rental Property and Depreciation
Useful life															40 years	5 years	20 years
Deferred Costs
Amortization of deferred financing fees				$ 800,000	$ 1,200,000	$ 1,100,000								$ 31,000
Dividends
Series A Preferred stock dividends paid				1,018,000	9,495,000	6,210,000		1,000,000	6,200,000	6,200,000			3,300,000
Dividend paid (in dollars per share)								$ 0.36875	$ 2.25	$ 2.25			$ 1.173175
Ordinary income (in dollars per share)				$ 0.3471	$ 0.9723	$ 0.6340
Return of capital (in dollars per share)				$ 0.1186	$ 0.3703	$ 0.4260
Unrecaptured section 1250 capital gain (in dollars per share)					$ 0.0137
Other capital gain (in dollars per share)					$ 0.0137
Total (in dollars per share)				$ 0.4657	$ 1.37	$ 1.06
Ordinary income (as a percent)				74.50%	71.00%	59.80%
Return of capital (as a percent)				25.50%	27.00%	40.20%
Unrecaptured section 1250 capital gain (as a percent)					1.00%
Other capital gain (as a percent)					1.00%
Total (as a percent)				100.00%	100.00%	100.00%
Common stock Dividends declared	$ 1.20	$ 1.26	$ 0.27		$ 0.10		$ 0.4140625				$ 0.3450500	$ 0.4140625	$ 1.1731750
Tenant Accounts Receivable, net
Allowance for doubtful accounts			0		19,000	0
Accrued rental revenue			6,400,000		9,300,000	6,400,000
Allowance on accrued rental revenue			0		0	0
Lease security deposits available in existing letters of credit			4,800,000		4,900,000	4,800,000
Lease security deposits available in cash			$ 2,000,000		$ 3,000,000	$ 2,000,000

XML

Consolidated and Combined Statements of Comprehensive Income (Loss) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended		3 Months Ended
	Dec. 31, 2011	Dec. 31, 2013	Dec. 31, 2012	Apr. 19, 2011 STAG Predecessor Group
Net income (loss)	$ (9,227)	$ 4,902	$ (10,199)	$ (229)
Other comprehensive income (loss):
Unrealized gain (loss) on interest rate swaps		4,405	(480)
Other comprehensive income (loss)		4,405	(480)
Comprehensive income (loss)	(9,227)	9,307	(10,679)	(229)
Net loss attributable to noncontrolling interest after preferred stock dividends	3,396	620	3,720
Other comprehensive (income) loss attributable to noncontrolling interest		(594)	109
Comprehensive income (loss) attributable to STAG Industrial, Inc.	$ (5,831)	$ 9,333	$ (6,850)	$ (229)

XML

Real Estate

12 Months Ended

Dec. 31, 2013

Real Estate

Real Estate

3. Real Estate

        The following table summarizes the acquisitions of the Company during the years ended December 31, 2013 and December 31, 2012:

Year ended December 31, 2013

Property Location	Date Acquired		Square Feet		Buildings
Orangeburg, SC		2/7/2013		319,000		1
Golden, CO		2/27/2013		227,500		1
Columbia, SC		2/28/2013		273,280		1
DeKalb, IL		3/15/2013		146,740		1
Ocala, FL		3/26/2013		619,466		1
Londonderry, NH		3/28/2013		125,060		1
Marion, IA		3/28/2013		95,500		1
Mishawaka, IN		4/5/2013		308,884		1
Southfield, MI(1)		4/9/2013		113,000		1
Houston, TX		4/9/2013		201,574		1
Idaho Falls, ID		4/11/2013		90,300		1
Mt. Prospect, IL		5/14/2013		87,380		1
Williamsport, PA		5/31/2013		250,000		1
Belvidere, IL		6/19/2013		1,006,960		8
Kentwood, MI		6/26/2013		85,157		1
Marshall, MI		6/26/2013		57,025		1
Nashville, TN		7/18/2013		150,000		1
Catoosa, OK		7/31/2013		100,100		1
New Berlin, WI		8/16/2013		205,063		1
Hampstead, MD		8/21/2013		1,035,249		1
New Hope, MN		9/20/2013		107,348		1
Springfield, OH		9/26/2013		350,500		1
Orlando, FL		10/8/2013		215,900		1
North Jackson, OH		11/6/2013		209,835		1
Mebane, NC		11/14/2013		383,500		1
Shannon, GA		11/26/2013		568,516		1
Lansing, MI		12/11/2013		160,000		1
Harvard, IL		12/17/2013		126,304		1
Sauk Village, IL		12/17/2013		375,785		1
South Holland, IL		12/17/2013		202,902		1
Mascot, TN		12/19/2013		130,560		1
Janesville, WI		12/27/2013		700,000		1
Total				9,028,388		39

(1)

The Company also owns a 5.4 acre vacant land parcel adjacent to this building.

Year ended December 31, 2012

Property Location	Date Acquired		Square Feet		Buildings
East Windsor, CT		3/1/2012		145,000		1
South Bend, IN		3/8/2012		225,000		1
Lansing, MI		3/21/2012		129,325		1
Portland, ME		3/27/2012		100,600		1
Portland, TN		3/30/2012		414,043		1
Spartanburg, SC		4/5/2012		409,600		4
Franklin, IN		4/17/2012		703,496		1
Muhlenberg Township, PA		5/24/2012		394,289		1
Avon, CT		6/15/2012		78,400		1
Orlando, FL		6/15/2012		155,000		1
Pineville, NC		6/15/2012		75,400		1
Buffalo, NY		6/15/2012		117,000		1
Edgefield, SC		6/15/2012		126,190		1
Arlington, TX		6/15/2012		196,000		1
Bellevue, OH		7/18/2012		181,838		1
Atlanta, GA		8/1/2012		407,981		1
Huntersville, NC		8/6/2012		185,570		1
Simpsonville, SC		8/23/2012		204,952		1
Simpsonville, SC		8/23/2012		207,042		1
Dallas, GA		9/4/2012		92,807		1
Mebane, NC		9/4/2012		223,340		1
Mebane, NC		9/4/2012		202,691		1
De Pere, WI		9/13/2012		200,000		1
Duncan, SC		9/21/2012		474,000		1
Duncan, SC		9/21/2012		313,380		1
Buena Vista, VA		9/27/2012		172,759		1
Gurnee, IL		9/28/2012		223,760		1
Auburn Hills, MI		10/9/2012		87,932		1
El Paso, TX		10/9/2012		269,245		1
Gloversville, NY		10/9/2012		50,000		1
Gloversville, NY		10/9/2012		101,589		1
Gloversville, NY		10/9/2012		26,529		1
Gloversville, NY		10/9/2012		59,965		1
Greenwood, SC		10/9/2012		104,955		1
Greenwood, SC		10/9/2012		70,100		1
Holland, MI		10/9/2012		195,000		1
Independence, VA		10/9/2012		120,000		1
Jackson, TN		10/9/2012		250,000		1
Johnstown, NY		10/9/2012		52,500		1
Johnstown, NY		10/9/2012		60,000		1
Johnstown, NY		10/9/2012		42,325		1
Johnstown, NY		10/9/2012		57,102		1
Kansas City, KS		10/9/2012		56,580		1
Lafayette, IN		10/9/2012		71,400		1
Lafayette, IN		10/9/2012		120,000		1
Lafayette, IN		10/9/2012		275,000		1
Lansing, MI		10/9/2012		250,100		1
Marion, IN		10/9/2012		249,600		1
Novi, MI		10/9/2012		120,800		1
O'Hara, PA		10/9/2012		887,084		1
Parsons, KS		10/9/2012		120,000		1
Phenix City, AL		10/9/2012		117,568		1
Portage, IN		10/9/2012		212,000		1
Ware Shoals, SC		10/9/2012		20,514		1
Wichita, KS		10/9/2012		80,850		1
Wichita, KS		10/9/2012		120,000		1
Wichita, KS		10/9/2012		44,760		1
Wichita, KS		10/9/2012		47,700		1
Chicopee, MA		10/26/2012		217,000		1
Sterling Heights, MI		10/31/2012		108,000		1
Harrisonburg, VA		11/29/2012		357,673		1
Toledo, OH		12/13/2012		177,500		1
Woodstock, IL		12/14/2012		129,803		1
Kansas City, MO		12/19/2012		226,576		1
Smyrna, GA		12/20/2012		102,000		1
Montgomery, IL		12/20/2012		584,301		1
Statham, GA		12/21/2012		225,680		1
Total				12,829,194		70

        On October 9, 2012, the Company acquired 31 industrial properties from STAG Investments Holdings II, LLC, a wholly owned subsidiary of STAG Investments II, LLC (the "Fund"), which are related parties of the Company through common management. On October 31, 2012 and April 5, 2013, the Company acquired two additional industrial properties from the Fund. The Company and its Predecessor served as the asset manager of the Fund for all periods presented. Together, the acquisition of the 33 industrial properties (collectively referred to as the "STAG II Acquisitions") represented a significant acquisition of the Company.

        The following table (in thousands) summarizes the allocation of the consideration paid during the year ended December 31, 2013 and the year ended December 31, 2012, respectively, for the acquired assets and liabilities in connection with the acquisitions of buildings at the date of acquisition identified in the table above (in thousands):

	Year Ended December 31, 2013			Weighted Average Amortization Period (years) Lease Intangibles		Year Ended December 31, 2012			Weighted Average Amortization Period (years) Lease Intangibles
Land	$	31,310			N/A	$	34,991			N/A
Buildings		223,420			N/A		269,616			N/A
Tenant improvements		2,526			N/A		10,624			N/A
Cash escrow for capital additions		—			N/A		785			N/A
Above market leases		8,219			5.8		16,728			10.0
Below market leases		(2,538	)		7.2		(5,962	)		6.5
In-place leases		50,005			5.8		63,397			6.6
Tenant relationships		21,257			8.2		26,241			8.2
Building and land improvements		9,133			N/A		7,488			N/A
Net assets acquired	$	343,332				$	423,908

        As partial consideration for eight buildings acquired on June 19, 2013, the Company granted 555,758 Common Units in the Operating Partnership with a fair value of approximately $11.5 million based on the Company's NYSE closing stock price on June 19, 2013. The issuance of the Common Units was effected in reliance upon an exemption from registration provided by Section 4(2) under the Securities Act of 1933, as amended. The Company relied on the exemption based on representations given by the holders of the Common Units. The remaining purchase price of approximately $40.1 million was paid in cash.

        The Company has included the results of operations for each of the acquired properties on the Consolidated Statements of Operations from the date of acquisition. The properties acquired during the year ended December 31, 2013 contributed $16.7 million to total revenue and $0.4 million to net income (including property acquisition costs of $3.0 million related to the acquisition of 39 buildings during the year ended December 31, 2013) during the year ended December 31, 2013.

        The following tables set forth pro forma information for the years ended December 31, 2013 and 2012, respectively. The below pro forma information does not purport to represent what the actual results of operations of the Company would have been had the acquisitions outlined above occurred on the first day of the applicable reporting period, nor do they purport to predict the results of operations of future periods. The pro forma information has not been adjusted for property sales.

Pro Forma	Year ended December 31, 2013 (in thousands, except share data)(1)
Total revenue	$	154,866
Net income(2)	$	11,780
Net income attributable to common stockholders	$	1,715
Weighted average shares outstanding		42,364,125
Net income per share attributable to common stockholders	$	0.04

Pro Forma	Year ended December 31, 2012 (in thousands, except share data)(3)
Total revenue	$	152,962
Net loss(2)	$	(12,286	)
Net loss attributable to common stockholders	$	(14,424	)
Weighted average shares outstanding		25,046,664
Net loss per share attributable to common stockholders	$	(0.58	)

(1)

The unaudited pro forma information for the year ended December 31, 2013 is presented as if the properties acquired during the year ended December 31, 2013 had occurred at January 1, 2012, the beginning of the reporting period prior to acquisition.

(2)

The net income for the year ended December 31, 2013 excludes $3.0 million of property acquisition costs related to the acquisition of buildings that closed during the year ended December 31, 2013, and the net loss for the year ended December 31, 2012 was adjusted to include these acquisition costs. Net loss for the year ended December 31, 2012 excludes $3.6 million of property acquisition costs related to the acquisition of buildings that closed during the year ended December 31, 2012.

(3)

The unaudited pro forma information for the year ended December 31, 2012 is presented as if the properties acquired during the year ended December 31, 2013 and the properties acquired during the year ended December 31, 2012 had occurred at January 1, 2012 and January 1, 2011, respectively, the beginning of the reporting period prior to acquisition.

        On October 31, 2013, the Company sold a 243,048 square feet warehouse and distribution building located in Creedmoor, NC. The carrying value of the building prior to sale was $4.5 million. The sales price was $9.5 million and the Company received net proceeds of $9.3 million. A gain on sale of real estate of $4.8 million was recognized at closing under the full accrual method of gain recognition. On October 18, 2013, the Company entered into a lease termination agreement with the tenant located at Creedmoor, NC. The agreement provided that the tenant's lease terminated effective October 31, 2013 and required the tenant to pay a termination fee of $2.5 million. The building contributed $0.7 million (exclusive of termination income and acceleration of straight line rent and above market rent), $0.9 million and $0.6 million to total revenue during the years ended December 31, 2013, December 31, 2012, and the period from April 20, 2011 to December 31, 2011, respectively. The results of operations (inclusive of the termination income) and the gain on sale are included in income (loss) attributable to discontinued operations on the accompanying Consolidated Statements of Operations.

        On June 12, 2013, the Company sold a 53,183 square feet flex/office building located in Pittsburgh, PA. The carrying value of the building prior to sale was $4.4 million. The sales price was $5.1 million and the Company received net proceeds of $4.8 million. A gain on sale of real estate of $0.5 million was recognized at closing under the full accrual method of gain recognition. The building contributed $0.3 million, $0.5 million, and $0.4 million, to total revenue during the years ended December 31, 2013, December 31, 2012 and the period from April 20, 2011 to December 31, 2011, respectively. The results of operations and the gain on sale are included in income (loss) attributable to discontinued operations on the accompanying Consolidated Statements of Operations.

        The Company tested the property located in Great Bend, KS for impairment as of September 30, 2012 utilizing a probability weighted recovery analysis of certain scenarios, and it was determined that the carrying value of the property was not recoverable from the estimated future undiscounted cash flows. Accordingly, the property was written down to its estimated fair value resulting in a loss on impairment of $3.9 million (of which $0.7 million related to lease intangibles) for the three and nine months ended September 30, 2012. Subsequent to the impairment loss being recognized, on November 30, 2012, the Company sold the building for a sales price of $4.0 million in an arm's length transaction. The carrying value of the property prior to sale was $4.0 million. The Company received net proceeds of $4.0 million. There was a gain of $3 thousand recognized at closing under the full accrual method of gain recognition. The property contributed $0 million, $1.8 million, $0.8 million and $0.4 million to total revenue during the years ended December 31, 2013, December 31, 2012, the period from April 20, 2011 to December 31, 2011 and the period from January 1, 2011 to April 19, 2011, respectively. The loss on impairment, results of operations and the gain on sale are included in income (loss) attributable to discontinued operations on the accompanying Consolidated and Combined Statements of Operations.

        On April 20, 2012, the Company sold a vacant warehouse and distribution facility located in Youngstown, OH containing 153,708 net rentable square feet. The carrying value of the property prior to sale was $3.0 million. The sales price was $3.4 million and the Company received net proceeds of $3.2 million. The property contributed $0, $0, $2.0 million and $0.2 million to total revenue during the years ended December 31, 2013, December 31, 2012, the period from April 20, 2011 to December 31, 2011 and the period from January 1, 2011 to April 19, 2011, respectively. At closing, the Company recognized a gain on sale of real estate in the amount of $0.2 million under the full accrual method of gain recognition. The results of operations and the gain on sale are included in income (loss) attributable to discontinued operations on the accompanying Consolidated and Combined Statements of Operations.

        On December 22, 2011, the Company sold a vacant flex/office property located in Amesbury, MA containing approximately 78,000 net rentable square feet. The carrying value of the property prior to sale was $4.2 million. The sales price was approximately $4.8 million and the Company received net proceeds of $4.5 million. At closing, the Company recognized a gain on sale of real estate in the amount of $0.3 million under the full accrual method of gain recognition. The property contributed $0, $0, $0 and $0 to total revenue during the years ended December 31, 2013, December 31, 2012, the period from April 20, 2011 to December 31, 2011 and the period from January 1, 2011 to April 19, 2011, respectively. The results of operations and the gain on sale are included in income (loss) attributable to discontinued operations on the accompanying Consolidated and Combined Statement of Operations.

XML

Commitments and Contingencies (Details) (USD $)	3 Months Ended	9 Months Ended	12 Months Ended						0 Months Ended	12 Months Ended		12 Months Ended
	Apr. 19, 2011	Dec. 31, 2011	Dec. 31, 2013 item	Dec. 31, 2012	Dec. 31, 2013 Minimum	Dec. 31, 2012 Minimum	Dec. 31, 2013 Maximum	Dec. 31, 2012 Maximum	Jun. 15, 2012 One-time incentive fee Columbus Nova property	Dec. 31, 2013 One-time incentive fee Columbus Nova	Dec. 31, 2012 One-time incentive fee Columbus Nova	Dec. 31, 2013 One-time incentive fee Columbus Nova Minimum	Dec. 31, 2013 One-time incentive fee Columbus Nova Maximum
Commitments and Contingencies
Number of industrial properties acquired									6
Aggregate purchase price of industrial properties acquired									$ 30,000,000
Internal rate of return (as a percent)										10.00%
Percentage of return earned by entity upon achieving a 10% internal rate of return by the entity										20.00%
Fair value of incentive fee										0	0
Ground rent expense	0	100,000	400,000	200,000
Rent expense incurred	$ 0	$ 300,000	$ 500,000	$ 400,000
Fair value inputs, discount rate (as a percent)				11.40%	1.57%	1.86%	5.24%	4.64%		9.50%
Fair value inputs, exit capitalization rate (as a percent)										9.00%
Fair value inputs, market rent and expense growth rate (as a percent)												1.00%	3.00%
Number of separate ground leases for which the entity is a lessee			5
Number of separate ground leases having option to extend period of lease			3

XML

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2013

Summary of Significant Accounting Policies

Basis of Presentation

Basis of Presentation

        The Company's consolidated financial statements include the accounts of the Company, the Operating Partnership and their subsidiaries. The equity interests of other limited partners in the Operating Partnership are reflected as noncontrolling interest. The combined financial statements of STAG Predecessor Group include the accounts of STAG Predecessor Group and all entities in which STAG Predecessor Group had a controlling interest. All significant intercompany balances and transactions have been eliminated in the consolidation and combination of entities. The financial statements of the Company are presented on a consolidated basis, for all periods presented and comprise the consolidated historical financial statements of the transferred collection of real estate entities and holdings, upon the IPO. The combined financial information presented for periods on or prior to April 19, 2011 relate solely to STAG Predecessor Group. The financial statements for the periods after April 19, 2011 include the financial information of the Company, the Operating Partnership and their subsidiaries. Where the "Company" is referenced in comparisons of financial results for any date prior to and including April 19, 2011, the financial information for such period relates solely to STAG Predecessor Group, notwithstanding "Company" being the reference.

Consolidated and Combined Statements of Cash Flows-Supplemental Disclosures

Consolidated and Combined Statements of Cash Flows—Supplemental Disclosures

        The following table provides supplemental disclosures related to the Consolidated and Combined Statements of Cash Flows (in thousands):

	STAG Industrial, Inc. Year ended December 31, 2013			STAG Industrial, Inc. Year ended December 31, 2012			STAG Industrial, Inc. Period from April 20, 2011 to December 31, 2011			STAG Predecessor Group Period from January 1, 2011 to April 19, 2011
Supplemental cash flow information
Cash paid for interest	$	19,272		$	15,044		$	11,445		$	2,433
Supplemental schedule of non-cash investing and financing activities
Acquisition of tangible assets	$	—		$	—		$	(215,890	)	$	—
Acquisition of goodwill upon Formation Transactions	$	—		$	—		$	(4,923	)	$	—
Acquisition of intangible assets upon Formation Transactions	$	—		$	—		$	(83,442	)	$	—
Assumption of mortgage notes payable	$	—		$	—		$	(201,789	)	$	—
Fair market value adjustment to mortgage notes payable acquired	$	—		$	—		$	(675	)	$	—
Assumption of related party notes payable upon Formation Transactions	$	—		$	—		$	4,466		$	—
Acquisition of intangible liabilities upon Formation Transactions	$	—		$	—		$	1,066		$	—
Acquisition of interest rate swaps upon Formation Transactions included in the purchase price allocation	$	—		$	—		$	420		$	—
Acquisition of other liabilities upon Formation Transactions	$	—		$	—		$	171		$	—
Issuance of units for acquisition of net assets upon Formation Transactions	$	—		$	—		$	95,670		$	—
Disposition of accrued lender fees upon Formation Transactions	$	—		$	—		$	—		$	4,420
Assumption of bridge loan for Option Properties upon Formation Transactions	$	—		$	—		$	—		$	(4,750	)
Assumption of note payable to related party for Option Properties upon Formation Transactions	$	—		$	—		$	—		$	(727	)
Assumption of interest rate swaps to related party for Option Properties upon Formation Transactions	$	—		$	—		$	—		$	(352	)
Non-cash investing activities included in additions of land and building improvements	$	(11,934	)	$	(440	)	$	(440	)	$	—
Issuance of units for acquisitions of properties	$	11,499		$	—		$	—		$	—
Write-off of fully depreciated tenant improvements	$	1,254		$	576		$	—		$	—
Write-off of accumulated depreciation	$	1,254		$	576		$	—		$	—
Dividends and distributions declared but not paid	$	5,166		$	11,301		$	6,160		$	—
Accrued distribution upon Formation Transactions	$	—		$	—		$	—		$	(1,392	)

Use of Estimates

Use of Estimates

        The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Real Estate and Deferred Lease Intangibles

Real Estate and Deferred Lease Intangibles

        Real estate investments are carried at cost less accumulated depreciation and amortization. The cost of real estate includes the purchase price of the property and leasehold improvements. Expenditures for maintenance and repairs are expensed as incurred. Significant renovations and betterments that extend the economic useful lives of assets are capitalized.

        The Company evaluates the carrying value of all tangible and intangible real estate assets held for use for possible impairment when an event or change in circumstance has occurred that indicates their carrying value may not be recoverable. The evaluation includes estimating and reviewing anticipated future undiscounted cash flows to be derived from the asset and the ultimate sale of the asset. If such cash flows are less than the asset's carrying value, an impairment charge is recognized to the extent by which the asset's carrying value exceeds the estimated fair value. Estimating future cash flows is highly subjective and such estimates could differ from actual results.

        For properties considered held for sale, the Company ceases depreciating the properties and values the properties at the lower of depreciated cost or fair value, less costs to dispose. The Company classifies properties as held for sale when all criteria within the FASB's Accounting Standard Codification ("ASC") 360, Property, Plant and Equipment are met.

        The Company presents qualifying assets and liabilities and the results of operations that have been sold, or otherwise qualify as "held for sale," as discontinued operations in all periods presented if the property operations are expected to be eliminated and the Company will not have significant continuing involvement following the sale. The components of the property's net income (loss) are reflected as discontinued operations include operating results, depreciation and interest expense (if the property is subject to a secured loan).

        Expenditures for tenant improvements, leasehold improvements and leasing commissions are capitalized and amortized or depreciated over the shorter of their useful lives or the terms of each specific lease. Depreciation expense is computed using the straight-line method based on the following useful lives:

Buildings	40 years
Building and land improvements	5 - 20 years
Tenant improvements	Shorter of useful life or terms of related lease

        The Company evaluates acquisitions to determine if the acquisition represents an asset acquisition or business combination, and the Company accounts for all business combinations in accordance with ASC 805, Business Combinations. Upon acquisition of a property, the Company allocates the purchase price of the property based upon the fair value of the assets and liabilities acquired, which generally consist of land, buildings, tenant improvements and intangible assets including in-place leases, above market and below market leases and tenant relationships, as well as the fair value of debt assumed. The Company allocates the purchase price to the fair value of the tangible assets of an acquired property by valuing the property as if it were vacant. Acquired above and below market leases are valued based on the present value of the difference between prevailing market rates and the in-place rates measured over a period equal to the remaining term of the lease for above market leases and the initial term plus the term of any below market fixed rate renewal options for below market leases that are considered bargain renewal options. The above market lease values are amortized as a reduction of rental income over the remaining term of the respective leases, and the below market lease values are amortized as an increase to rental income over the remaining initial terms plus the terms of any below market fixed rate renewal options that are considered bargain renewal options of the respective leases.

        The purchase price is further allocated to in-place lease values and tenant relationships based on the Company's evaluation of the specific characteristics of each tenant's lease and its overall relationship with the respective tenant. The value of in-place lease intangibles and tenant relationships, which are included as components of deferred leasing intangibles, are amortized over the remaining lease term (and expected renewal periods of the respective lease for tenant relationships) as adjustments to depreciation and amortization expense. If a tenant terminates its lease, the unamortized portion of leasing commissions, above and below market leases, the in-place lease value and tenant relationships are immediately written off.

        In determining the fair value of the debt assumed, the Company discounts the spread between the future contractual interest payments and hypothetical future interest payments on mortgage debt based on a current market rate. The associated fair market value debt adjustment is amortized through interest expense over the life of the debt.

        Using information available at the time of acquisition, the Company allocates the total consideration to tangible assets and liabilities and identified intangible assets and liabilities. The Company may adjust the preliminary purchase price allocations after obtaining more information about asset valuations and liabilities assumed.

Cash and Cash Equivalents

Cash and Cash Equivalents

        Cash and cash equivalents consist of cash and highly liquid short-term investments with original maturities of three months or less. The Company maintains cash and cash equivalents in United States banking institutions that may exceed amounts insured by the Federal Deposit Insurance Corporation. While the Company monitors the cash balances in its operating accounts, these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, the Company has experienced no loss or lack of access to cash in its operating accounts.

Restricted Cash

Restricted Cash

        Restricted cash may include security deposits and cash held in escrow for real estate taxes and capital improvements as required in various mortgage loan agreements. Restricted cash also may include amounts held by the Company's transfer agent for preferred stock dividends that are distributed subsequent to period end.

Tenant Accounts Receivable, net

Tenant Accounts Receivable, net

        Tenant accounts receivable, net on the Consolidated Balance Sheets includes both tenant accounts receivable, net and accrued rental income, net. The Company provides an allowance for doubtful accounts against the portion of tenant accounts receivable that is estimated to be uncollectible. As of December 31, 2013 and December 31, 2012, the Company had an allowance for doubtful accounts of $19 thousand and $0, respectively.

        The Company accrues rental revenue earned, but not yet receivable, in accordance with GAAP. As of December 31, 2013 and December 31, 2012, the Company had accrued rental revenue of $9.3 million and $6.4 million, respectively. The Company maintains an allowance for estimated losses that may result from those revenues. If a tenant fails to make contractual payments beyond any allowance, the Company may recognize additional bad debt expense in future periods equal to the amount of unpaid rent and accrued rental revenue. As of December 31, 2013 and December 31, 2012, the Company had an allowance on accrued rental revenue of $0 and $0, respectively.

        As of December 31, 2013 and December 31, 2012, the Company had a total of approximately $4.9 million and $4.8 million, respectively, of total lease security deposits available in existing letters of credit, which are not reflected on the Company's Consolidated Balance Sheets; and $3.0 million and $2.0 million, respectively, of lease security deposits available in cash.

Deferred Costs

Deferred Costs

        Deferred financing fees include costs incurred in obtaining debt that are capitalized. The deferred financing fees are amortized to interest expense over the life of the respective loans on a basis which approximates the effective interest method. Any unamortized amounts upon early repayment of debt are written off in the period of repayment. For the year ended December 31, 2013, December 31, 2012, period April 20, 2011 through December 31, 2011 and the period January 1, 2011 through April 19, 2011 amortization of deferred financing fees included in interest expense was $1.2 million, $1.1 million, $0.8 million, and $31 thousand, respectively. Fully amortized deferred charges are removed from the books upon maturity of the underlying debt.

        Leasing commissions include commissions and other direct and incremental costs incurred to obtain new tenant leases as well as to renew existing tenant leases, which are capitalized and amortized over the terms of the related leases using the straight-line method. If a lease terminates prior to the expiration of its initial term, any unamortized costs related to the lease are written off to amortization expense. Changes in leasing commissions are presented in the cash flows from operating activities section of the Consolidated and Combined Statements of Cash Flows.

Goodwill

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. Goodwill of the Company represents amounts allocated to the assembled workforce from the acquired management company. The Company's goodwill has an indeterminate life and is not amortized, but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company takes 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.

Use of Derivative Financial Instruments

Use of Derivative Financial Instruments

        The Company follows ASC 815, Derivatives and Hedging for disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why the Company uses derivative instruments, (b) how the Company accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect the Company's financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company's objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments.

        The Company records all derivatives on the Consolidated Balance Sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. 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. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.

        In accordance with the FASB's fair value measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting arrangements on a net basis by counterparty portfolio. Credit risk is the risk of failure of the counterparty to perform under the terms of the contract. The Company minimizes the credit risk in an interest rate swap by entering into transactions with high-quality counterparties. The Company's exposure to credit risk at any point is generally limited to amounts recorded as assets or liabilities on the Consolidated Balance Sheets.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

        Financial instruments include cash and cash equivalents, restricted cash, tenant accounts receivable, interest rate swaps, accounts payable, other accrued expenses, Unsecured Credit Facility (defined in Note 5), Unsecured Term Loans (defined in Note 5) and mortgage notes payable. The fair values of the cash and cash equivalents, restricted cash, tenant accounts receivable, accounts payable and other accrued expenses approximate their carrying or contract values because of the short term maturity of these instruments. See Note 5 for the fair values of the Company's debt. See Note 6 for the fair values of the Company's interest rate swaps.

        The Company adopted the fair value measurement provisions for its financial instruments recorded at fair value. The guidance establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

Offering Costs

Offering Costs

        Underwriting commissions and direct offering costs have been reflected as a reduction of additional paid-in capital. Indirect costs associated with equity offerings are expensed as incurred and included in Formation Transaction costs and offering costs on the accompanying Consolidated Statements of Operations.

Dividends

Dividends

        Earnings and profits, which determine the taxability of dividends to stockholders, will differ from income reported for financial reporting purposes due to the differences for federal income tax purposes in the treatment of gains on the sale of real property, revenue and expense recognition, compensation expense, and in the estimated useful lives and basis used to compute depreciation. During the years ended December 31, 2013, December 31, 2012, and the period from April 20, 2011 to December 31, 2011, $6.2 million ($2.25 per share of Series A Preferred Stock), $6.2 million ($2.25 per share of Series A Preferred Stock) and $1.0 million ($0.36875 per share of Series A Preferred Stock) of Series A Preferred Stock dividends were paid, respectively, that were treated as ordinary income for tax purposes. During the year ended December 31, 2013, $3.3 million ($1.173175 per share of Series B Preferred Stock) of Series B Preferred Stock dividends were paid that were treated as ordinary income for tax purposes. The tax treatment of common dividends per share for federal income tax purposes is as follows:

	Year ended December 31, 2013					Year ended December 31, 2012					Period from April 20, 2011 to December 31, 2011
	Per Share		%			Per Share		%			Per Share		%
Ordinary income	$	0.9723		71.0	%	$	0.6340		59.8	%	$	0.3471		74.5	%
Return of capital		0.3703		27.0	%		0.4260		40.2	%		0.1186		25.5	%
Unrecaptured section 1250 capital gain		0.0137		1.0	%		—		—			—		—
Other capital gain		0.0137		1.0	%		—		—			—		—
Total(1)	$	1.37		100	%	$	1.06		100	%	$	0.4657		100	%

(1)

The fourth quarter 2012 common stock dividend of $0.27 per share was included in the stockholder's 2013 tax year. The December 2013 monthly common stock dividend of $0.10 per share will be included in the stockholder's 2014 tax year.

Revenue Recognition

Revenue Recognition

        All current leases are classified as operating leases and rental revenue is recognized on a straight-line basis over the term of the lease when collectability is reasonably assured. Differences between rental revenue earned and amounts due under the lease are charged or credited, as applicable, to accrued rental revenue. Additional rents from expense reimbursements for insurance, real estate taxes and certain other expenses are recognized in the period in which the related expenses are incurred.

        Early lease termination fees are recorded in rental income on a straight-line basis from the notification date of such termination to the then remaining (not the original) lease term, if any, or upon collection if collection is not reasonably assured. On July 8, 2011, the Company entered into a lease termination agreement with the tenant of two facilities, one located in Youngstown, OH and the other in Bardstown, KY. The agreement provided that the Youngstown, OH lease terminated effective July 31, 2011 and required the tenant to pay a termination fee of $2.0 million. Of the termination fee paid, $0.2 million was a replenishment of a security deposit at the Bardstown, KY property, $45 thousand was applied to the outstanding accounts receivable, and the remaining amount of approximately $1.8 million was recognized as termination income and is included in rental income during the period April 20, 2011 to December 31, 2011. On October 18, 2013, the Company entered into a lease termination agreement with the tenant located at the Creedmoor, NC building. The agreement provided that the tenant's lease terminated effective October 31, 2013 and required the tenant to pay a termination fee of $2.5 million. The termination income is included in income (loss) attributable to discontinued operations on the accompanying Consolidated Statements of Operations as the property was sold on October 31, 2013 to an unaffiliated third party.

        The Company earns revenue from asset management fees, which are included on the Consolidated Statements of Operations in other income. The Company recognizes revenue from asset management fees when the related fees are earned and are realized or realizable.

        By the terms of their leases, certain tenants are obligated to pay directly the costs of their properties' insurance, real estate taxes, ground lease payments, and certain other expenses and these costs are not reflected on the Company's Consolidated and Combined Financial Statements. To the extent any tenant responsible for these costs under its respective lease defaults on its lease or it is deemed probable that the tenant will fail to pay for such costs, the Company would record a liability for such obligation. The Company estimates that real estate taxes, which are the responsibility of these certain tenants, was approximately $9.4 million for the year ended December 31, 2013, $6.9 million for the year ended December 31, 2012, $0.5 million for the period January 1, 2011 to April 19, 2011, $3.5 million for the period from April 20, 2011 to December 31, 2011. This would have been the maximum liability of the Company had the tenants not met their contractual obligations. The Company does not recognize recovery revenue related to leases where the tenant has assumed the cost for real estate taxes, insurance, ground lease payments and certain other expenses.

Gain on Sale of Real Estate

Gain on Sales of Real Estate

        Gain on sale of real estate is recognized pursuant to the provisions included in ASC 360-20, Real Estate Sales. The specific timing of the sale is measured against various criteria in ASC 360-20 related to the terms of the transaction and continuing involvement in the form of management or financial assistance associated with the properties. If the sales criteria for the full accrual method are not met, the Company defers some or all of the gain recognition and accounts for the continued operations of the property by applying the finance, leasing, profit sharing, deposit, installment or cost recovery methods, as appropriate, until the sales criteria are met.

Incentive and Equity-Based Employee Compensation Plans

Incentive and Equity-Based Employee Compensation Plans

        The Company grants equity-based compensation awards to its employees and directors typically in the form of restricted shares of common stock, long-term incentive plan units in the Operating Partnership ("LTIP units") and an outperformance program. See Notes 7, 8 and 14 for further discussion of restricted shares of common stock, LTIP units, and the outperformance program, respectively. The Company accounts for its equity-based employee compensation in accordance with ASC 718, Compensation—Stock Compensation. The Company measures equity-based compensation expense based on the fair value of the awards on the grant date and recognizes the expense ratably over the vesting period.

Income Taxes

Income Taxes

        Prior to the IPO, the Predecessor was comprised primarily of limited partnerships and limited liability companies. Under applicable federal and state income tax rules, the allocated share of net income or loss from the limited partnerships and limited liability companies was reportable in the income tax returns of the respective partners and members.

        The Company elected to be taxed as a REIT under the Code commencing with its taxable year ended December 31, 2011 and intends to continue to qualify as a REIT. As a REIT, the Company is required to distribute at least 90% of its REIT taxable income to its stockholders and meet the various other requirements imposed by the Code relating to such matters as operating results, asset holdings, distribution levels and diversity of stock ownership. The Company is generally not subject to corporate level income tax on the earnings distributed currently to its stockholders that it derives from its REIT qualifying activities. If the Company fails to qualify as a REIT in any taxable year, and is unable to avail itself of certain savings provisions set forth in the Code, all of the Company's taxable income would be subject to federal income tax at regular corporate rates, including any applicable alternative minimum tax.

        The Company will not be required to make distributions with respect to income derived from the activities conducted through subsidiaries that the Company elects to treat as taxable REIT subsidiaries ("TRS") for federal income tax purposes. Certain activities that the Company undertakes must be conducted by a TRS, such as performing non-customary services for its tenants and holding assets that it cannot hold directly. A TRS is subject to federal and state income taxes. The TRS did not have any activity during the years ended December 31, 2013 and December 31, 2012 and the period April 20, 2011 to December 31, 2011.

        The Company and certain of its subsidiaries are subject to certain state and local income, excise and franchise taxes. Taxes in the amount of $0.6 million, $0.3 million and $0.3 million have been recorded in other expenses on the accompanying Consolidated Statements of Operations for the years ended December 31, 2013, December 31, 2012 and the period April 20, 2011 to December 31, 2011.

        The Company currently has no liabilities for uncertain tax positions.

        The following table reconciles net income (loss) to taxable income for the years ended December 31, 2013 and 2012, respectively, and the period April 20, 2011 to December 31, 2011 (in thousands):

	Year ended December 31, 2013			Year ended December 31, 2012			Period from April 20, 2011 to December 31, 2011
Net income (loss)	$	4,902		$	(10,199	)	$	(9,227	)
Book/Tax differences from depreciation and amortization		46,389			24,048			12,625
Above/Below market lease amortization		6,544			4,837			2,776
Loss on impairments		—			4,563			—
Formation Transaction costs		—			—			3,169
Offering costs		27			68			78
Book/Tax difference on property acquisition costs		3,427			4,218			1,088
Loss on extinguishment of debt		—			565			—
Accrued non-recurring IPO bonus payment		—			(1,000	)		1,000
Accrued bonus payment		440			3,731			—
Book/Tax difference on bad debt expense		19			317			526
Book/Tax difference on non-cash compensation		1,846			1,375			560
Book/Tax difference on gain on sales of real estate		(3,915	)		(4,554	)		(1,231	)
Straight-line rent adjustments, net		(2,941	)		(2,796	)		(1,036	)
Unrealized gain on interest rate swaps		—			(215	)		(2,805	)
Book/tax difference on non-cash portion of interest expense		(106	)		(159	)		—
Other book/tax differences, net		28			63			(73	)
Loss attributable to noncontrolling interest		(7,785	)		(5,940	)		(1,768	)
Taxable income subject to distribution requirement(1)	$	48,875		$	18,922		$	5,682

(1)

The Company distributed in excess of 100% of its taxable income to its stockholders during the years ended December 31, 2013 and December 31, 2012, and the period April 20, 2011 to December 31, 2011, respectively.

Earnings Per Share

Earnings Per Share

        The Company uses the two-class method of computing earnings per common share, which is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Under the two-class method, basic earnings per common share are computed by dividing the sum of distributed earnings to common stockholders and undistributed earnings allocated to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur from shares issuable in connection with awards under incentive and equity-based compensation plans.

Segment Reporting

Segment Reporting

        The Company manages its operations on an aggregated, single segment basis for purposes of assessing performance and making operating decisions and, accordingly, has only one reporting and operating segment.

XML

Organization and Description of Business (Details)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Organization and Description of Business
Number of buildings owned	209
Number of states in which the entity owned buildings	34
Area of building (in square feet)	38,100,000
Number of warehouse/distribution buildings	142
Number of light manufacturing buildings	47
Number of flex/office buildings	20
Number of vacant land parcels owned	1
Percentage of buildings leased to tenants	95.60%
Number of tenants to whom buildings are given on lease	191
STAG Industrial Operating Partnership, L.P.
Organization and Description of Business
Ownership interest in Operating Partnership (as a percent)	86.65%	85.29%

XML

Employee Benefit Plans

12 Months Ended

Dec. 31, 2013

Employee Benefit Plans

Employee Benefit Plans

13. Employee Benefit Plans

        Effective April 20, 2011, the Company adopted a 401(k) Defined Contribution Savings Plan (the "Plan") for its employees. Under the Plan, as amended, employees, as defined, are eligible to participate in the Plan after they have completed three months of service. The Company provides a discretionary match of 50% of the employee's contributions annually up to 6.0% of the employee's annual salary. The Company's aggregate matching contribution for the years ended December 31, 2013, December 31, 2012 and for the period April 20, 2011 through December 31, 2011was $0.1 million, $0.1 million and $46 thousand, respectively. The Company's contribution is subject to a three-year vesting schedule.