10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

____________________________________________________________________________

FORM 10-Q 

____________________________________________________________________________

☒    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2022

OR

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

(617) 574-4777

(Registrant’s telephone number, including area code)

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

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common stock, $0.01 par value per share	STAG	New York Stock Exchange

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 ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files).  Yes ☒  No ☐

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

Large accelerated filer ☒     Accelerated filer  ☐     Non-accelerated filer ☐     Smaller reporting company ☐     Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

The number of shares of common stock outstanding at July 26, 2022 was 179,215,896.

STAG Industrial, Inc.

Table of Contents

PART I.	Financial Information	3
Item 1.	Financial Statements (unaudited)	3
	Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021	3
	Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2022 and 2021	4
	Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2022 and 2021	5
	Consolidated Statements of Equity for the Three and Six Months Ended June 30, 2022 and 2021	6
	Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021	7
	Notes to Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	45
Item 4.	Controls and Procedures	46
PART II.	Other Information	47
Item 1.	Legal Proceedings	47
Item 1A.	Risk Factors	47
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	47
Item 3.	Defaults Upon Senior Securities	47
Item 4.	Mine Safety Disclosures	47
Item 5.	Other Information	47
Item 6.	Exhibits	48
	SIGNATURES	49

2

Part I. Financial Information

Item 1.  Financial Statements

STAG Industrial, Inc.

Consolidated Balance Sheets

(unaudited, in thousands, except share data)

	June 30, 2022		December 31, 2021
Assets
Rental Property:
Land	$	636,274	$	617,297
Buildings and improvements, net of accumulated depreciation of $682,095 and $611,867, respectively	4,610,814		4,435,743
Deferred leasing intangibles, net of accumulated amortization of $311,916 and $282,038, respectively	551,061		567,658
Total rental property, net	5,798,149		5,620,698
Cash and cash equivalents	12,614		18,981
Restricted cash	3,233		4,215
Tenant accounts receivable	100,500		93,600
Prepaid expenses and other assets	66,903		60,953
Interest rate swaps	37,899		5,220
Operating lease right-of-use assets	32,237		29,582
Assets held for sale, net	57,773		—
Total assets	$	6,109,308	$	5,833,249
Liabilities and Equity
Liabilities:
Unsecured credit facility	$	116,000	$	296,000
Unsecured term loans, net	971,272		970,577
Unsecured notes, net	1,295,064		896,941
Mortgage notes, net	53,635		54,744
Accounts payable, accrued expenses and other liabilities	84,379		76,475
Interest rate swaps	—		17,052
Tenant prepaid rent and security deposits	37,549		37,138
Dividends and distributions payable	22,282		21,906
Deferred leasing intangibles, net of accumulated amortization of $24,066 and $21,136, respectively	36,084		35,721
Operating lease liabilities	35,894		33,108
Liabilities held for sale, net	654		—
Total liabilities	2,652,813		2,439,662
Commitments and contingencies (Note 11)
Equity:
Preferred stock, par value $0.01 per share, 20,000,000 shares authorized at June 30, 2022 and December 31, 2021; none issued or outstanding	—		—
Common stock, par value $0.01 per share, 300,000,000 shares authorized at June 30, 2022 and December 31, 2021, 179,211,738 and 177,769,342 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively	1,792		1,777
Additional paid-in capital	4,182,165		4,130,038
Cumulative dividends in excess of earnings	(838,437)		(792,332)
Accumulated other comprehensive income (loss)	36,895		(11,783)
Total stockholders’ equity	3,382,415		3,327,700
Noncontrolling interest	74,080		65,887
Total equity	3,456,495		3,393,587
Total liabilities and equity	$	6,109,308	$	5,833,249

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

3

STAG Industrial, Inc.

Consolidated Statements of Operations

(unaudited, in thousands, except per share data)

	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
Revenue
Rental income	$	161,057	$	137,805	$	319,658	$	271,630
Other income	443		622		1,051		792
Total revenue	161,500		138,427		320,709		272,422
Expenses
Property	28,874		25,356		60,649		52,358
General and administrative	12,234		12,578		24,547		25,368
Depreciation and amortization	69,279		57,332		136,645		115,739
Other expenses	532		511		1,029		1,363
Total expenses	110,919		95,777		222,870		194,828
Other income (expense)
Interest and other income	23		30		57		62
Interest expense	(17,896)		(15,273)		(35,155)		(30,631)
Debt extinguishment and modification expenses	—		—		—		(679)
Gain on the sales of rental property, net	376		5,976		24,331		12,385
Total other income (expense)	(17,497)		(9,267)		(10,767)		(18,863)
Net income	$	33,084	$	33,383	$	87,072	$	58,731
Less: income attributable to noncontrolling interest after preferred stock dividends	708		733		1,870		1,206
Net income attributable to STAG Industrial, Inc.	$	32,376	$	32,650	$	85,202	$	57,525
Less: preferred stock dividends	—		—		—		1,289
Less: redemption of preferred stock	—		—		—		2,582
Less: amount allocated to participating securities	59		74		121		147
Net income attributable to common stockholders	$	32,317	$	32,576	$	85,081	$	53,507
Weighted average common shares outstanding — basic	179,049		159,736		178,442		159,086
Weighted average common shares outstanding — diluted	179,144		161,367		178,586		160,249
Net income per share — basic and diluted
Net income per share attributable to common stockholders — basic	$	0.18	$	0.20	$	0.48	$	0.34
Net income per share attributable to common stockholders — diluted	$	0.18	$	0.20	$	0.48	$	0.33

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

4

STAG Industrial, Inc.

Consolidated Statements of Comprehensive Income

(unaudited, in thousands)

	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
Net income	$	33,084	$	33,383	$	87,072	$	58,731
Other comprehensive income:
Income on interest rate swaps	12,509		1,432		49,746		13,582
Other comprehensive income	12,509		1,432		49,746		13,582
Comprehensive income	45,593		34,815		136,818		72,313
Income attributable to noncontrolling interest after preferred stock dividends	(708)		(733)		(1,870)		(1,206)
Other comprehensive income attributable to noncontrolling interest	(266)		(31)		(1,068)		(299)
Comprehensive income attributable to STAG Industrial, Inc.	$	44,619	$	34,051	$	133,880	$	70,808

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

5

STAG Industrial, Inc.

Consolidated Statements of Equity

(unaudited, in thousands, except share data)

	Preferred Stock		Common Stock			Additional Paid-in Capital		Cumulative Dividends in Excess of Earnings		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity		Noncontrolling Interest - Unit Holders in Operating Partnership		Total Equity
			Shares	Amount
Three months ended June 30, 2022
Balance, March 31, 2022	$	—	179,211,305	$	1,792	$	4,179,361	$	(805,400)	$	24,652	$	3,400,405	$	74,474	$	3,474,879
Proceeds from sales of common stock, net	—		—	—		(93)		—		—		(93)		—		(93)
Dividends and distributions, net	—		—	—		—		(65,413)		—		(65,413)		(1,910)		(67,323)
Non-cash compensation activity, net	—		433	—		2,071		—		—		2,071		1,368		3,439
Rebalancing of noncontrolling interest	—		—	—		826		—		—		826		(826)		—
Other comprehensive income	—		—	—		—		—		12,243		12,243		266		12,509
Net income	—		—	—		—		32,376		—		32,376		708		33,084
Balance, June 30, 2022	$	—	179,211,738	$	1,792	$	4,182,165	$	(838,437)	$	36,895	$	3,382,415	$	74,080	$	3,456,495
Three months ended June 30, 2021
Balance, March 31, 2021	$	—	159,082,448	$	1,591	$	3,443,787	$	(778,727)	$	(28,143)	$	2,638,508	$	59,608	$	2,698,116
Proceeds from sales of common stock, net	—		1,208,014	12		41,781		—		—		41,793		—		41,793
Dividends and distributions, net	—		—	—		—		(58,036)		—		(58,036)		(4,325)		(62,361)
Non-cash compensation activity, net	—		2,901	—		2,192		—		—		2,192		2,347		4,539
Redemption of common units to common stock	—		22,175	—		368		—		—		368		(368)		—
Rebalancing of noncontrolling interest	—		—	—		(1,186)		—		—		(1,186)		1,186		—
Other comprehensive income	—		—	—		—		—		1,401		1,401		31		1,432
Net income	—		—	—		—		32,650		—		32,650		733		33,383
Balance, June 30, 2021	$	—	160,315,538	$	1,603	$	3,486,942	$	(804,113)	$	(26,742)	$	2,657,690	$	59,212	$	2,716,902
Six months ended June 30, 2022
Balance, December 31, 2021	$	—	177,769,342	$	1,777	$	4,130,038	$	(792,332)	$	(11,783)	$	3,327,700	$	65,887	$	3,393,587
Proceeds from sales of common stock, net	—		1,328,335	13		54,870		—		—		54,883		—		54,883
Dividends and distributions, net	—		—	—		—		(130,527)		—		(130,527)		(3,384)		(133,911)
Non-cash compensation activity, net	—		49,061	1		(1,208)		(780)		—		(1,987)		7,105		5,118
Redemption of common units to common stock	—		65,000	1		1,216		—		—		1,217		(1,217)		—
Rebalancing of noncontrolling interest	—		—	—		(2,751)		—		—		(2,751)		2,751		—
Other comprehensive income	—		—	—		—		—		48,678		48,678		1,068		49,746
Net income	—		—	—		—		85,202		—		85,202		1,870		87,072
Balance, June 30, 2022	$	—	179,211,738	$	1,792	$	4,182,165	$	(838,437)	$	36,895	$	3,382,415	$	74,080	$	3,456,495
Six months ended June 30, 2021
Balance, December 31, 2020	$	75,000	158,209,823	$	1,582	$	3,421,721	$	(742,071)	$	(40,025)	$	2,716,207	$	54,845	$	2,771,052
Proceeds from sales of common stock, net	—		1,888,290	19		63,340		—		—		63,359		—		63,359
Redemption of preferred stock	(75,000)		—	—		2,573		(2,582)		—		(75,009)		—		(75,009)
Dividends and distributions, net	—		—	—		—		(116,864)		—		(116,864)		(5,761)		(122,625)
Non-cash compensation activity, net	—		98,091	1		(1,022)		(121)		—		(1,142)		8,954		7,812
Redemption of common units to common stock	—		119,334	1		1,990		—		—		1,991		(1,991)		—
Rebalancing of noncontrolling interest	—		—	—		(1,660)		—		—		(1,660)		1,660		—
Other comprehensive income	—		—	—		—		—		13,283		13,283		299		13,582
Net income	—		—	—		—		57,525		—		57,525		1,206		58,731
Balance, June 30, 2021	$	—	160,315,538	$	1,603	$	3,486,942	$	(804,113)	$	(26,742)	$	2,657,690	$	59,212	$	2,716,902

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

6

STAG Industrial, Inc.

Consolidated Statements of Cash Flows

(unaudited, in thousands)

	Six months ended June 30,
	2022		2021
Cash flows from operating activities:
Net income	$	87,072	$	58,731
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	136,645		115,739
Non-cash portion of interest expense	1,744		1,276
Amortization of above and below market leases, net	(113)		1,799
Straight-line rent adjustments, net	(8,089)		(8,887)
Gain on the sales of rental property, net	(24,331)		(12,385)
Non-cash compensation expense	6,686		9,154
Change in assets and liabilities:
Tenant accounts receivable	1,307		3,212
Prepaid expenses and other assets	(10,915)		(10,018)
Accounts payable, accrued expenses and other liabilities	771		864
Tenant prepaid rent and security deposits	411		2,888
Total adjustments	104,116		103,642
Net cash provided by operating activities	191,188		162,373
Cash flows from investing activities:
Acquisitions of land and buildings and improvements	(294,387)		(194,164)
Additions of land and building and improvements	(36,639)		(18,913)
Acquisitions of other assets	(2,134)		—
Acquisitions of operating lease right-of-use assets	(3,541)		—
Proceeds from sales of rental property, net	38,409		39,619
Acquisition deposits, net	593		(877)
Acquisitions of deferred leasing intangibles	(40,751)		(27,682)
Acquisitions of operating lease liabilities	3,541		—
Net cash used in investing activities	(334,909)		(202,017)
Cash flows from financing activities:
Proceeds from unsecured credit facility	871,000		765,000
Repayment of unsecured credit facility	(1,051,000)		(588,000)
Proceeds from unsecured term loans	—		300,000
Repayment of unsecured term loans	—		(300,000)
Proceeds from unsecured notes	400,000		—
Repayment of mortgage notes	(1,173)		(1,093)
Payment of loan fees and costs	(2,119)		(2,847)
Proceeds from sales of common stock, net	54,797		63,314
Redemption of preferred stock	—		(75,000)
Dividends and distributions	(133,537)		(122,212)
Repurchase and retirement of share-based compensation	(1,596)		(1,342)
Net cash provided by financing activities	136,372		37,820
Decrease in cash and cash equivalents and restricted cash	(7,349)		(1,824)
Cash and cash equivalents and restricted cash—beginning of period	23,196		20,339
Cash and cash equivalents and restricted cash—end of period	$	15,847	$	18,515
Supplemental disclosure:
Cash paid for interest, net of capitalized interest	$	33,105	$	29,574
Supplemental schedule of non-cash investing and financing activities
Additions to building and other capital improvements	$	(1,713)	$	—
Transfer of other assets to building and other capital improvements	$	1,713	$	—
Acquisitions of land and buildings and improvements	$	—	$	(4,239)
Acquisitions of deferred leasing intangibles	$	—	$	(703)
Change in additions of land, building, and improvements included in accounts payable, accrued expenses, and other liabilities	$	(7,064)	$	3,469
Additions to building and other capital improvements from non-cash compensation	$	(40)	$	—
Assumption of mortgage notes	$	—	$	5,103
Fair market value adjustment to mortgage notes acquired	$	—	$	(161)
Change in loan fees, costs, and offering costs included in accounts payable, accrued expenses, and other liabilities	$	27	$	1,016
Dividends and distributions accrued	$	22,282	$	19,803

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

7

STAG Industrial, Inc.

Notes to Consolidated Financial Statements

(unaudited)

1. Organization and Description of Business

STAG Industrial, Inc. (the “Company”) is an industrial real estate operating company focused on the acquisition and operation of single-tenant, industrial properties throughout the United States. The Company was formed as a Maryland corporation and has elected to be treated and intends to continue to qualify as a real estate investment trust (“REIT”) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended. 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”). As of June 30, 2022 and December 31, 2021, the Company owned a 97.9% and 98.1%, respectively, common equity interest in the Operating Partnership. The Company, through its wholly owned subsidiary, is the sole general partner of the Operating Partnership. As used herein, the “Company” refers to STAG Industrial, Inc. and its consolidated subsidiaries, including the Operating Partnership, except where context otherwise requires.

As of June 30, 2022, the Company owned 559 industrial buildings in 40 states with approximately 111.5 million rentable square feet.

COVID-19 Pandemic

The Company and the real estate industry generally continue to face risks and uncertainties related to the ongoing public health crisis of the novel coronavirus disease (“COVID-19”) pandemic.

The Company closely monitors the effect of the COVID-19 pandemic on all aspects of its business, including how the pandemic will affect its tenants and business partners. The Company did not incur significant disruptions from the COVID-19 pandemic or enter into any rent deferral agreements during the three and six months ended June 30, 2022 and 2021. The Company will continue to evaluate tenant rent relief requests on an individual basis, considering a number of factors. Not all tenant requests will ultimately result in modified agreements, nor is the Company foregoing its contractual rights under its lease agreements.

The Company remains unable to predict the ultimate impact that the pandemic will have on its financial condition, results of operations and cash flows due to numerous uncertainties. The extent to which the COVID-19 pandemic affects the Company’s operations and those of its tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, among others.

2. Summary of Significant Accounting Policies

Interim Financial Information

The accompanying interim financial statements have been presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-Q and Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim financial statements include all adjustments, consisting of normal recurring items, necessary for their fair statement in conformity with GAAP. Interim results are not necessarily indicative of results for a full year. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Basis of Presentation

The Company’s consolidated financial statements include the accounts of the Company, the Operating Partnership, and their consolidated subsidiaries. Interests in the Operating Partnership not owned by the Company are referred to as “Noncontrolling Common Units.” These Noncontrolling Common Units are held by other limited partners in the form of common units (“Other Common Units”) and long term incentive plan units (“LTIP units”) issued pursuant to the STAG Industrial, Inc. 2011 Equity Incentive Plan, as amended and restated (the “2011 Plan”). All significant intercompany balances and transactions have been

8

eliminated in the consolidation of entities. The financial statements of the Company are presented on a consolidated basis for all periods presented.

Restricted Cash

The following table presents a reconciliation of cash and cash equivalents and restricted cash reported on the accompanying Consolidated Balance Sheets to amounts reported on the accompanying Consolidated Statements of Cash Flows.

Reconciliation of cash and cash equivalents and restricted cash (in thousands)	June 30, 2022		December 31, 2021
Cash and cash equivalents	$	12,614	$	18,981
Restricted cash	3,233		4,215
Total cash and cash equivalents and restricted cash	$	15,847	$	23,196

Taxes

Federal Income Taxes

The Company’s taxable REIT subsidiary recognized net income (loss) of approximately $0, $0.1 million, $(4,000), and $(4,000) for the three and six months ended June 30, 2022 and 2021, respectively.

State and Local Income, Excise, and Franchise Tax

State and local income, excise, and franchise taxes in the amount of approximately $0.4 million, $0.9 million, $0.4 million, and $0.8 million have been recorded in other expenses on the accompanying Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021, respectively.

Uncertain Tax Positions

As of June 30, 2022 and December 31, 2021, there were no liabilities for uncertain tax positions.

Concentrations of Credit Risk

Management believes the current credit risk of the Company’s portfolio is reasonably well diversified and does not contain any unusual concentration of credit risk.

3. Rental Property

The following table summarizes the components of rental property as of June 30, 2022 and December 31, 2021.

Rental Property (in thousands)	June 30, 2022		December 31, 2021
Land	$	636,274	$	617,297
Buildings, net of accumulated depreciation of $455,845 and $406,670, respectively	4,180,194		4,035,210
Tenant improvements, net of accumulated depreciation of $29,256 and $26,065, respectively	43,072		43,999
Building and land improvements, net of accumulated depreciation of $196,994 and $179,132, respectively	328,971		320,041
Construction in progress	58,577		36,493
Deferred leasing intangibles, net of accumulated amortization of $311,916 and $282,038, respectively	551,061		567,658
Total rental property, net	$	5,798,149	$	5,620,698

9

Acquisitions

The following table summarizes the acquisitions of the Company during the three and six months ended June 30, 2022. The Company accounted for all of its acquisitions as asset acquisitions.

Market(1)	Date Acquired	Square Feet	Number of Buildings	Purchase Price (in thousands)
Kansas City, MO	January 6, 2022	702,000	1	$	60,428
Chicago, IL	January 31, 2022	72,499	1	8,128
Columbus, OH	February 8, 2022	138,213	1	11,492
Cleveland, OH	February 8, 2022	136,800	1	13,001
Nashville, TN	March 10, 2022	109,807	1	12,810
Greenville/Spartanburg, SC	March 10, 2022	289,103	1	28,274
Memphis, TN	March 18, 2022	195,622	1	15,828
Greenville/Spartanburg, SC	March 18, 2022	155,717	1	16,390
Three months ended March 31, 2022		1,799,761	8	$	166,351
Atlanta, GA	April 1, 2022	210,858	1	21,119
Minneapolis/St. Paul, MN	April 4, 2022	160,000	1	13,472
West Michigan, MI	April 14, 2022	211,125	2	12,274
Pittsburgh, PA	April 19, 2022	400,000	1	50,178
Greenville/Spartanburg, SC(2)	April 22, 2022	—	—	5,559
Birmingham, AL	May 5, 2022	67,168	1	7,871
South Bay/San Jose, CA	June 7, 2022	175,325	1	29,630
Washington, DC	June 29, 2022	140,555	1	20,257
Hampton Roads, VA	June 29, 2022	102,512	1	10,561
Three months ended June 30, 2022		1,467,543	9	$	170,921
Six months ended June 30, 2022		3,267,304	17	$	337,272

(1) As defined by CoStar Realty Information Inc (“CoStar”). If the building is located outside of a CoStar defined market, the city and state is reflected.

(2) The Company acquired vacant land parcels.

The following table summarizes the allocation of the total purchase price paid (on the closing dates) for the assets and liabilities acquired by the Company during the six months ended June 30, 2022 in connection with the acquisitions identified in the table above.

	Six months ended June 30, 2022
Acquired Assets and Liabilities	Purchase Price (in thousands)		Weighted Average Amortization Period (years) of Intangibles at Acquisition
Land	$	26,720	N/A
Buildings	252,487		N/A
Tenant improvements	1,779		N/A
Building and land improvements	13,401		N/A
Other assets	2,134		N/A
Operating lease right-of-use assets	3,541		N/A
Deferred leasing intangibles - In-place leases	28,559		8.2
Deferred leasing intangibles - Tenant relationships	15,125		11.3
Deferred leasing intangibles - Above market leases	2,438		11.7
Deferred leasing intangibles - Below market leases	(5,371)		8.0
Operating lease liabilities	(3,541)		N/A
Total purchase price	$	337,272

The following table summarizes the results of operations for the three and six months ended June 30, 2022 for the buildings acquired during the six months ended June 30, 2022, which are included in the Company’s Consolidated Statements of Operations from the date of acquisition.

Results of Operations (in thousands)	Three months ended June 30, 2022		Six months ended June 30, 2022
Total revenue	$	4,054	$	5,305
Net income	$	265	$	151

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Dispositions

During the six months ended June 30, 2022, the Company sold two buildings and one land parcel to third parties comprised of approximately 0.3 million rentable square feet with a net book value of approximately $14.1 million. These buildings contributed approximately $0, $0.2 million, $0.4 million and $0.8 million to revenue for the three and six months ended June 30, 2022 and 2021, respectively. These buildings contributed approximately ($27,000), $0.1 million, $0.3 million, and $0.5 million to net income (loss) (exclusive of gain on the sales of rental property, net) for the three and six months ended June 30, 2022 and 2021, respectively. Net proceeds from the sales of rental property were approximately $38.4 million and the Company recognized the full gain on the sales of rental property, net, of approximately $24.3 million for the six months ended June 30, 2022.

Assets Held for Sale

As of June 30, 2022, the related land, building and improvements, net, deferred leasing intangibles assets, net and deferred leasing intangibles liabilities, net, of approximately $5.5 million, $42.6 million, $9.7 million, and $0.7 million, respectively, for three buildings were classified as assets and liabilities held for sale, net on the accompanying Consolidated Balance Sheets. These buildings contributed approximately $1.2 million, $2.5 million, $1.7 million and $3.5 million to revenue for the three and six months ended June 30, 2022 and 2021, respectively. These buildings contributed approximately $0.4 million, $0.7 million, $0.9 million and $1.8 million to net income for the three and six months ended June 30, 2022 and 2021, respectively.

Deferred Leasing Intangibles

The following table summarizes the deferred leasing intangibles on the accompanying Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021.

	June 30, 2022						December 31, 2021
Deferred Leasing Intangibles (in thousands)	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Above market leases	$	88,114	$	(32,834)	$	55,280	$	91,565	$	(32,110)	$	59,455
Other intangible lease assets	774,863		(279,082)		495,781		758,131		(249,928)		508,203
Total deferred leasing intangible assets	$	862,977	$	(311,916)	$	551,061	$	849,696	$	(282,038)	$	567,658
Below market leases	$	60,150	$	(24,066)	$	36,084	$	56,857	$	(21,136)	$	35,721
Total deferred leasing intangible liabilities	$	60,150	$	(24,066)	$	36,084	$	56,857	$	(21,136)	$	35,721

The following table summarizes the amortization expense and the net increase (decrease) to rental income for the amortization of deferred leasing intangibles during the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Deferred Leasing Intangibles Amortization (in thousands)	2022		2021		2022		2021
Net increase (decrease) to rental income related to above and below market lease amortization	$	22	$	(330)	$	101	$	(1,810)
Amortization expense related to other intangible lease assets	$	24,705	$	21,422	$	48,782	$	43,869

The following table summarizes the amortization of deferred leasing intangibles over the next five calendar years (including the remainder of 2022) as of June 30, 2022.

Year	Amortization Expense Related to Other Intangible Lease Assets (in thousands)		Net Increase (Decrease) to Rental Income Related to Above and Below Market Lease Amortization (in thousands)
Remainder of 2022	$	46,432	$	74
2023	$	83,154	$	(58)
2024	$	72,189	$	(695)
2025	$	63,028	$	(529)
2026	$	54,085	$	(1,213)

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4. Debt

The following table summarizes the Company’s outstanding indebtedness, including borrowings under the Company’s unsecured credit facility, unsecured term loans, unsecured notes, and mortgage notes as of June 30, 2022 and December 31, 2021.

Loan	Principal Outstanding as of June 30, 2022 (in thousands)		Principal Outstanding as of December 31, 2021 (in thousands)		Interest  Rate(1)(2)		Maturity Date	Prepayment Terms(3)
Unsecured credit facility:
Unsecured Credit Facility(4)(5)	$	116,000	$	296,000	L + 0.775%		October 23, 2026	i
Total unsecured credit facility	116,000		296,000
Unsecured term loans:
Unsecured Term Loan D(6)	150,000		150,000		2.85	%	January 4, 2023	i
Unsecured Term Loan E(6)	175,000		175,000		3.77	%	January 15, 2024	i
Unsecured Term Loan F	200,000		200,000		2.96	%	January 12, 2025	i
Unsecured Term Loan G	300,000		300,000		1.13	%	February 5, 2026	i
Unsecured Term Loan A	150,000		150,000		2.15	%	March 15, 2027	i
Total unsecured term loans	975,000		975,000
Total unamortized deferred financing fees and debt issuance costs	(3,728)		(4,423)
Total carrying value unsecured term loans, net	971,272		970,577
Unsecured notes:
Series F Unsecured Notes	100,000		100,000		3.98	%	January 5, 2023	ii
Series A Unsecured Notes	50,000		50,000		4.98	%	October 1, 2024	ii
Series D Unsecured Notes	100,000		100,000		4.32	%	February 20, 2025	ii
Series G Unsecured Notes	75,000		75,000		4.10	%	June 13, 2025	ii
Series B Unsecured Notes	50,000		50,000		4.98	%	July 1, 2026	ii
Series C Unsecured Notes	80,000		80,000		4.42	%	December 30, 2026	ii
Series E Unsecured Notes	20,000		20,000		4.42	%	February 20, 2027	ii
Series H Unsecured Notes	100,000		100,000		4.27	%	June 13, 2028	ii
Series I Unsecured Notes	275,000		275,000		2.80	%	September 29, 2031	ii
Series K Unsecured Notes	400,000		—		4.12	%	June 28, 2032	ii
Series J Unsecured Notes	50,000		50,000		2.95	%	September 28, 2033	ii
Total unsecured notes	1,300,000		900,000
Total unamortized deferred financing fees and debt issuance costs	(4,936)		(3,059)
Total carrying value unsecured notes, net	1,295,064		896,941
Mortgage notes (secured debt):
Wells Fargo Bank, National Association CMBS Loan	45,603		46,610		4.31	%	December 1, 2022	iii
Thrivent Financial for Lutherans	3,363		3,430		4.78	%	December 15, 2023	iv
United of Omaha Life Insurance Company	4,844		4,943		3.71	%	October 1, 2039	ii
Total mortgage notes	53,810		54,983
Net unamortized fair market value discount	(136)		(136)
Total unamortized deferred financing fees and debt issuance costs	(39)		(103)
Total carrying value mortgage notes, net	53,635		54,744
Total / weighted average interest rate(7)	$	2,435,971	$	2,218,262	3.25	%

(1)Interest rate as of June 30, 2022. At June 30, 2022, the one-month LIBOR (“L”) was 1.78671%. The current interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums. The spread over the applicable rate for the Company’s unsecured credit facility and unsecured term loans is based on the Company’s debt rating and leverage ratio, as defined in the respective loan agreements.

(2)The unsecured term loans have a stated interest rate of one-month LIBOR plus a spread of 0.85%, with the exception of Unsecured Term Loan D which has a stated interest rate of one-month LIBOR plus a spread of 1.0%. As of June 30, 2022, one-month LIBOR for the Unsecured Term Loans A, D, E, F, and G was swapped to a fixed rate of 1.30%, 1.85%, 2.92%, 2.11%, and 0.28%, respectively. One-month LIBOR for the Unsecured Term Loan G will be swapped to a fixed rate of 0.94% effective April 18, 2023.

(3)Prepayment terms consist of (i) pre-payable with no penalty; (ii) pre-payable with penalty; (iii) pre-payable without penalty three months prior to the maturity date, subject to defeasance; and (iv) pre-payable without penalty three months prior to the maturity date.

(4)The capacity of the unsecured credit facility is $750.0 million. Deferred financing fees and debt issuance costs, net of accumulated amortization related to the unsecured credit facility of approximately $4.6 million and $5.2 million are included in prepaid expenses and other assets on the accompanying Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021, respectively. The initial maturity date is October 24, 2025, or such later date

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which may be extended pursuant to two six-month extension options exercisable by the Company in its discretion upon advance written notice. Exercise of each six-month option is subject to the following conditions: (i) absence of a default immediately before the extension and immediately after giving effect to the extension; (ii) accuracy of representations and warranties as of the extension date (both immediately before and after the extension), as if made on the extension date; and (iii) payment of a fee. Neither extension option is subject to lender consent, assuming proper notice and satisfaction of the conditions.

(5)Subsequent to June 30, 2022, on July 26, 2022, the Company entered into an amended and restated credit agreement for the unsecured credit facility. Refer to Note 12 for additional details.

(6)Subsequent to June 30, 2022, the Unsecured Term Loan D and the Unsecured Term Loan E were repaid in full in connection with the Company's new unsecured term loan agreements entered into on July 26, 2022. Refer to Note 12 for additional details.

(7)The weighted average interest rate was calculated using the fixed interest rate swapped on the notional amount of $975.0 million of debt, and is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums or discounts.

The aggregate undrawn nominal commitment on the unsecured credit facility as of June 30, 2022 was approximately $630.4 million, including issued letters of credit. The Company’s actual borrowing capacity at any given point in time may be less or restricted to a maximum amount based on the Company’s debt covenant compliance. Total accrued interest for the Company’s indebtedness was approximately $9.6 million and $8.6 million as of June 30, 2022 and December 31, 2021, respectively, and is included in accounts payable, accrued expenses and other liabilities on the accompanying Consolidated Balance Sheets.

The following table summarizes the costs included in interest expense related to the Company’s debt arrangements on the accompanying Consolidated Statement of Operations for the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Costs Included in Interest Expense (in thousands)	2022		2021		2022		2021
Amortization of deferred financing fees and debt issuance costs and fair market value premiums/discounts	$	880	$	789	$	1,744	$	1,276
Facility, unused, and other fees	$	345	$	440	$	686	$	826

On April 28, 2022, the Company entered into a note purchase agreement (the “April 2022 NPA”) for the private placement by the Operating Partnership of $400.0 million senior unsecured notes (the “Series K Unsecured Notes”) maturing June 28, 2032, with a fixed annual interest rate of 4.12%. The April 2022 NPA contains a number of financial covenants substantially similar to the financial covenants contained in the Company’s unsecured credit facility and other unsecured notes, plus a financial covenant that requires the Company to maintain a minimum interest coverage ratio of not less than 1.50:1.00. The Operating Partnership issued the Series K Unsecured Notes on June 28, 2022. The Company and certain wholly owned subsidiaries of the Operating Partnership are guarantors of the Series K Unsecured Notes.

Financial Covenant Considerations

The Company was in compliance with all financial and other covenants as of June 30, 2022 and December 31, 2021 related to its unsecured credit facility, unsecured term loans, unsecured notes, and mortgage notes. The real estate net book value of the properties that are collateral for the Company’s debt arrangements was approximately $86.9 million and $88.5 million at June 30, 2022 and December 31, 2021, respectively, and is limited to senior, property-level secured debt financing arrangements.

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Fair Value of Debt

The following table summarizes the aggregate principal amount outstanding under the Company’s debt arrangements and the corresponding estimate of fair value as of June 30, 2022 and December 31, 2021.

	June 30, 2022				December 31, 2021
Indebtedness (in thousands)	Principal Outstanding		Fair Value		Principal Outstanding		Fair Value
Unsecured credit facility	$	116,000	$	116,000	$	296,000	$	296,000
Unsecured term loans	975,000		975,112		975,000		975,224
Unsecured notes	1,300,000		1,200,811		900,000		937,183
Mortgage notes	53,810		53,163		54,983		56,323
Total principal amount	2,444,810		$	2,345,086	2,225,983		$	2,264,730
Net unamortized fair market value discount	(136)				(136)
Total unamortized deferred financing fees and debt issuance costs	(8,703)				(7,585)
Total carrying value	$	2,435,971			$	2,218,262

The applicable fair value guidance establishes a three tier fair 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. The fair value of the Company’s debt is based on Level 3 inputs.

5. 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 exposure on existing and future liabilities and not for speculative purposes. The principal objective of such arrangements is to minimize the risks and related costs associated with the Company’s operating and financial structure.

The following table summarizes the Company’s outstanding interest rate swaps as of June 30, 2022. All of the Company’s interest rate swaps are designated as qualifying cash flow hedges.

Interest Rate Derivative Counterparty	Trade Date	Effective Date	Notional Amount (in thousands)		Fair Value (in thousands)		Pay Fixed Interest Rate		Receive Variable Interest Rate	Maturity Date
The Toronto-Dominion Bank	Jul-20-2017	Oct-30-2017	$	25,000	$	108	1.8485	%	One-month L	Jan-04-2023
Royal Bank of Canada	Jul-20-2017	Oct-30-2017	$	25,000	$	107	1.8505	%	One-month L	Jan-04-2023
Wells Fargo Bank, N.A.	Jul-20-2017	Oct-30-2017	$	25,000	$	107	1.8505	%	One-month L	Jan-04-2023
PNC Bank, N.A.	Jul-20-2017	Oct-30-2017	$	25,000	$	108	1.8485	%	One-month L	Jan-04-2023
PNC Bank, N.A.	Jul-20-2017	Oct-30-2017	$	50,000	$	216	1.8475	%	One-month L	Jan-04-2023
The Toronto-Dominion Bank	Apr-20-2020	Sep-29-2020	$	75,000	$	1,633	0.2750	%	One-month L	Apr-18-2023
Wells Fargo Bank, N.A.	Apr-20-2020	Sep-29-2020	$	75,000	$	1,627	0.2790	%	One-month L	Apr-18-2023
The Toronto-Dominion Bank	Apr-20-2020	Mar-19-2021	$	75,000	$	1,633	0.2750	%	One-month L	Apr-18-2023
Wells Fargo Bank, N.A.	Apr-20-2020	Mar-19-2021	$	75,000	$	1,626	0.2800	%	One-month L	Apr-18-2023
The Toronto-Dominion Bank	Jul-24-2018	Jul-26-2019	$	50,000	$	171	2.9180	%	One-month L	Jan-12-2024
PNC Bank, N.A.	Jul-24-2018	Jul-26-2019	$	50,000	$	170	2.9190	%	One-month L	Jan-12-2024
Bank of Montreal	Jul-24-2018	Jul-26-2019	$	50,000	$	170	2.9190	%	One-month L	Jan-12-2024
U.S. Bank, N.A.	Jul-24-2018	Jul-26-2019	$	25,000	$	85	2.9190	%	One-month L	Jan-12-2024
Wells Fargo Bank, N.A.	May-02-2019	Jul-15-2020	$	50,000	$	930	2.2460	%	One-month L	Jan-15-2025
U.S. Bank, N.A.	May-02-2019	Jul-15-2020	$	50,000	$	936	2.2459	%	One-month L	Jan-15-2025
Regions Bank	May-02-2019	Jul-15-2020	$	50,000	$	933	2.2459	%	One-month L	Jan-15-2025
Bank of Montreal	Jul-16-2019	Jul-15-2020	$	50,000	$	1,590	1.7165	%	One-month L	Jan-15-2025
U.S. Bank, N.A.	Feb-17-2021	Apr-18-2023	$	150,000	$	7,690	0.9385	%	One-month L	Feb-5-2026
Wells Fargo Bank, N.A.	Feb-17-2021	Apr-18-2023	$	75,000	$	3,818	0.9365	%	One-month L	Feb-5-2026
The Toronto-Dominion Bank	Feb-17-2021	Apr-18-2023	$	75,000	$	3,861	0.9360	%	One-month L	Feb-5-2026
Regions Bank	Oct-26-2021	Apr-01-2022	$	50,000	$	3,446	1.3045	%	One-month L	Mar-15-2027
Bank of Montreal	Oct-26-2021	Apr-01-2022	$	50,000	$	3,472	1.3045	%	One-month L	Mar-15-2027
PNC Bank, N.A.	Oct-26-2021	Apr-01-2022	$	50,000	$	3,462	1.3045	%	One-month L	Mar-15-2027

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The following table summarizes the fair value of the interest rate swaps outstanding as of June 30, 2022 and December 31, 2021.

Balance Sheet Line Item (in thousands)	Notional Amount June 30, 2022		Fair Value June 30, 2022		Notional Amount December 31, 2021		Fair Value December 31, 2021
Interest rate swaps-Asset	$	1,275,000	$	37,899	$	600,000	$	5,220
Interest rate swaps-Liability	$	—	$	—	$	825,000	$	(17,052)

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. 

For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income (loss) and subsequently reclassified to interest expense in the same periods during which the hedged transaction affects earnings.

Amounts reported in accumulated other comprehensive income (loss) related to derivatives designated as qualifying cash flow hedges will be reclassified to interest expense as interest payments are made on the Company’s variable rate debt. The Company estimates that approximately $13.7 million will be reclassified from accumulated other comprehensive income (loss) as a decrease to interest expense over the next 12 months.

The following table summarizes the effect of cash flow hedge accounting and the location of amounts related to Company’s derivatives in the consolidated financial statements for the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Effect of Cash Flow Hedge Accounting (in thousands)	2022		2021		2022		2021
Income (loss) recognized in accumulated other comprehensive income (loss) on interest rate swaps	$	10,628	$	(2,501)	$	44,134	$	5,249
Loss reclassified from accumulated other comprehensive income (loss) into income as interest expense	$	1,881	$	3,933	$	5,612	$	8,333
Total interest expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded	$	17,896	$	15,273	$	35,155	$	30,631

Credit-risk-related Contingent Features

The Company has agreements with each of its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on the indebtedness.

As of June 30, 2022, the Company had not breached the provisions of these agreements and had not posted any collateral related to these agreements.

Fair Value of Interest Rate Swaps

The Company’s 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 Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company or its counterparties. However, as of June 30, 2022 and December 31, 2021, the Company has assessed the significance of the impact of the credit valuation adjustments on the

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overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy.

The following table summarizes the Company’s financial instruments that were recorded at fair value on a recurring basis as of June 30, 2022 and December 31, 2021. 

			Fair Value Measurements as of June 30, 2022 Using
Balance Sheet Line Item (in thousands)	Fair Value June 30, 2022		Level 1		Level 2		Level 3
Interest rate swaps-Asset	$	37,899	$	—	$	37,899	$	—
Interest rate swaps-Liability	$	—	$	—	$	—	$	—

			Fair Value Measurements as of December 31, 2021 Using
Balance Sheet Line Item (in thousands)	Fair Value December 31, 2021		Level 1		Level 2		Level 3
Interest rate swaps-Asset	$	5,220	$	—	$	5,220	$	—
Interest rate swaps-Liability	$	(17,052)	$	—	$	(17,052)	$	—

6. Equity

Preferred Stock

The Company is authorized to issue up to 20,000,000 shares of preferred stock, par value $0.01 per share. As of June 30, 2022 and December 31, 2021, there were no shares of preferred stock issued or outstanding.

The following table summarizes the dividends declared on the Company’s outstanding shares of preferred stock during the year ended December 31, 2021.

Quarter Ended 2021	Declaration Date	Series C Preferred Stock Per Share		Payment Date
March 31	January 11, 2021	$	0.4296875	March 31, 2021
Total		$	0.4296875

Common Stock

The Company is authorized to issue up to 300,000,000 shares of common stock, par value $0.01 per share.

The following table summarizes the terms of the Company’s at-the market (“ATM”) common stock offering program as of June 30, 2022.

ATM Common Stock Offering Program	Date	Maximum Aggregate Offering Price (in thousands)		Aggregate Available as of June 30, 2022 (in thousands)
2022 $750 million ATM	February 17, 2022	$	750,000	$	750,000

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The following tables summarize the activity under the ATM common stock offering program during the six months ended June 30, 2022 and year ended December 31, 2021.

	Six months ended June 30, 2022
ATM Common Stock Offering Program	Shares Sold	Weighted Average Price Per Share		Net Proceeds (in thousands)
2019 $600 million ATM(1)	128,335	$	45.03	$	5,721
Total/weighted average	128,335	$	45.03	$	5,721

(1)This program ended before March 31, 2022.

	Year ended December 31, 2021
ATM Common Stock Offering Program(1)	Shares Sold	Weighted Average Price Per Share		Net Proceeds (in thousands)
2019 $600 million ATM(2)	5,110,002	$	37.53	$	189,974
Total/weighted average	5,110,002	$	37.53	$	189,974

(1)Excludes shares of common stock sold under the ATM common stock offering program on a forward basis or issued upon physical settlement of the related forward sale agreements during the period.

(2)This program ended before March 31, 2022.

In connection with the Company’s underwritten public offering that closed in November 2021, on December 3, 2021, the Company executed a forward sale agreement for the sale of an additional 1,200,000 shares of common stock on a forward basis at a price of $41.87 per share. The Company did not initially receive any proceeds from the sale of shares on a forward basis. On March 29, 2022, the Company physically settled in full the forward sales agreement by issuing 1,200,000 shares of common stock for net proceeds of approximately $49.7 million, or $41.39 per share.

The following tables summarize the dividends declared on the Company’s outstanding shares of common stock during the six months ended June 30, 2022 and the year ended December 31, 2021.

Month Ended 2022	Declaration Date	Record Date	Per Share		Payment Date
June 30	April 14, 2022	June 30, 2022	$	0.121667	July 15, 2022
May 31	April 14, 2022	May 31, 2022	0.121667		June 15, 2022
April 30	April 14, 2022	April 29, 2022	0.121667		May 16, 2022
March 31	January 10, 2022	March 31, 2022	0.121667		April 18, 2022
February 28	January 10, 2022	February 28, 2022	0.121667		March 15, 2022
January 31	January 10, 2022	January 31, 2022	0.121667		February 15, 2022
Total			$	0.730002

Month Ended 2021	Declaration Date	Record Date	Per Share		Payment Date
December 31	October 13, 2021	December 31, 2021	$	0.120833	January 18, 2022
November 30	October 13, 2021	November 30, 2021	0.120833		December 15, 2021
October 31	October 13, 2021	October 29, 2021	0.120833		November 15, 2021
September 30	July 13, 2021	September 30, 2021	0.120833		October 15, 2021
August 31	July 13, 2021	August 31, 2021	0.120833		September 15, 2021
July 31	July 13, 2021	July 30, 2021	0.120833		August 16, 2021
June 30	April 12, 2021	June 30, 2021	0.120833		July 15, 2021
May 31	April 12, 2021	May 28, 2021	0.120833		June 15, 2021
April 30	April 12, 2021	April 30, 2021	0.120833		May 17, 2021
March 31	January 11, 2021	March 31, 2021	0.120833		April 15, 2021
February 28	January 11, 2021	February 26, 2021	0.120833		March 15, 2021
January 31	January 11, 2021	January 29, 2021	0.120833		February 16, 2021
Total			$	1.449996

On July 12, 2022, the Company’s board of directors declared dividends of the Company’s outstanding shares of common stock for the months ending July 31, 2022, August 31, 2022, and September 30, 2022 at a monthly rate of $0.121667 per share.

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Restricted Shares of Common Stock

The Company granted restricted shares of common stock under the 2011 Plan on January 10, 2022 to certain employees of the Company, which will vest in equal installments on an annual basis over four years (beginning on January 1, 2023), subject to the recipient’s continued employment. The following table summarizes activity related to the Company’s unvested restricted shares of common stock during the six months ended June 30, 2022 and the year ended December 31, 2021.

Unvested Restricted Shares of Common Stock	Shares		Weighted Average Grant Date Fair Value per Share
Balance at December 31, 2020	184,890		$	27.70
Granted	90,304		$	29.77
Vested	(79,140)	(1)	$	27.01
Forfeited	(10,339)		$	30.32
Balance at December 31, 2021	185,715		$	28.86
Granted	58,580		$	44.19
Vested	(73,556)	(1)	$	28.03
Forfeited	(9,056)		$	35.06
Balance at June 30, 2022	161,683		$	34.44

(1)The Company repurchased and retired 25,836 and 27,706 restricted shares of common stock that vested during the six months ended June 30, 2022 and the year ended December 31, 2021, respectively.

The unrecognized compensation expense associated with the Company’s restricted shares of common stock at June 30, 2022 was approximately $4.2 million and is expected to be recognized over a weighted average period of approximately 2.7 years.

The following table summarizes the fair value at vesting for the restricted shares of common stock that vested during the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Vested Restricted Shares of Common Stock	2022		2021		2022		2021
Vested restricted shares of common stock	—		—		73,556		72,788
Fair value of vested restricted shares of common stock (in thousands)	$	—	$	—	$	3,528	$	2,280

7. Noncontrolling Interest

The following table summarizes the activity for noncontrolling interest in the Company during the six months ended June 30, 2022 and the year ended December 31, 2021.

Noncontrolling Interest	LTIP Units	Other Common Units	Total Noncontrolling Common Units	Noncontrolling Interest
Balance at December 31, 2020	1,692,423	1,592,815	3,285,238	2.0	%
Granted/Issued	405,844	—	405,844	N/A
Forfeited	—	—	—	N/A
Conversions from LTIP units to Other Common Units	(149,143)	149,143	—	N/A
Redemptions from Other Common Units to common stock	—	(171,318)	(171,318)	N/A
Balance at December 31, 2021	1,949,124	1,570,640	3,519,764	1.9	%
Granted/Issued	470,237	—	470,237	N/A
Forfeited	—	—	—	N/A
Conversions from LTIP units to Other Common Units	(65,000)	65,000	—	N/A
Redemptions from Other Common Units to common stock	—	(65,000)	(65,000)	N/A
Balance at June 30, 2022	2,354,361	1,570,640	3,925,001	2.1	%

LTIP Units

The Company granted LTIP units under the 2011 Plan on January 10, 2022 to non-employee, independent directors, which will vest on January 1, 2023, subject to the recipient’s continued service. The Company granted LTIP units under the 2011 Plan on January 10, 2022 to certain executive officers and senior employees of the Company, which will vest in equal installments on a

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quarterly basis over four years (beginning on March 31, 2022), subject to the recipient’s continued employment. Refer to Note 8 for a discussion of the LTIP units granted on January 10, 2022 pursuant to the 2019 performance units.

The fair value of the LTIP units as of the grant date was determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation. The fair value of the LTIP units are based on Level 3 inputs and non-recurring fair value measurements. The following table summarizes the assumptions used in valuing the LTIP units granted during the six months ended June 30, 2022 (excluding the LTIP units granted pursuant to the 2019 performance units discussed in Note 8 below).

LTIP Units	Assumptions
Grant date	January 10, 2022
Expected term (years)	10
Expected stock price volatility	34.0		%
Expected dividend yield	4.0		%
Risk-free interest rate	1.204		%
Fair value of LTIP units at issuance (in thousands)	$	4,385
LTIP units at issuance	104,241
Fair value unit price per LTIP unit at issuance	$	42.07

The expected stock price volatility is based on a mix of the historical and implied volatilities of the Company and certain peer group companies. The expected dividend yield is based on the Company’s average historical dividend yield and the dividend yield as of the valuation date for each award. The risk-free interest rate is based on U.S. Treasury note yields matching a three-year time period.

The following table summarizes activity related to the Company’s unvested LTIP units during the six months ended June 30, 2022 and the year ended December 31, 2021.

Unvested LTIP Units	LTIP Units	Weighted Average Grant Date Fair Value per Unit
Balance at December 31, 2020	211,448	$	26.54
Granted	405,844	$	28.13
Vested	(427,184)	$	27.47
Forfeited	—	$	—
Balance at December 31, 2021	190,108	$	27.84
Granted	470,237	$	42.07
Vested	(444,675)	$	39.83
Forfeited	—	$	—
Balance at June 30, 2022	215,670	$	34.15

The unrecognized compensation expense associated with the Company’s LTIP units at June 30, 2022 was approximately $4.2 million and is expected to be recognized over a weighted average period of approximately 2.5 years.

The following table summarizes the fair value at vesting for the LTIP units that vested during the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Vested LTIP units	2022		2021		2022		2021
Vested LTIP units	30,327		45,335		444,675		228,821
Fair value of vested LTIP units (in thousands)	$	951	$	1,686	$	19,544	$	7,369

8. Equity Incentive Plan

On January 10, 2022, the compensation committee of the board of directors approved and the Company granted performance units under the 2011 Plan to the executive officers and certain key employees of the Company. The terms of the performance units granted on January 10, 2022 are substantially the same as the terms of the performance units granted in January 2021, 2020, and 2019, except that the measuring period commenced on January 1, 2022 and ends on December 31, 2024.

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The fair value of the performance units as of the grant date was determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation. The fair value of the performance units is based on Level 3 inputs and non-recurring fair value measurements. The performance unit equity compensation expense is recognized ratably from the grant date into earnings over the vesting period. The following table summarizes the assumptions used in valuing the performance units granted during the six months ended June 30, 2022.

Performance Units	Assumptions
Grant date	January 10, 2022
Expected stock price volatility	34.1		%
Expected dividend yield	4.0		%
Risk-free interest rate	1.1979		%
Fair value of performance units grant (in thousands)	$	6,289

The expected stock price volatility is based on a mix of the historical and implied volatilities of the Company and certain peer group companies. The expected dividend yield is based on the Company’s average historical dividend yield and the dividend yield as of the valuation date for each award. The risk-free interest rate is based on U.S. Treasury note yields matching the three-year time period of the performance period.

On December 31, 2021, the measuring period for the 2019 performance units concluded. The compensation committee of the board of directors determined that the Company’s total stockholder return exceeded the threshold percentage and return hurdle and approved the issuance of an aggregate of 365,996 vested LTIP units and 27,934 vested shares of common stock to the participants (of which 8,257 shares of common stock were repurchased and retired), which were issued on January 10, 2022.

The unrecognized compensation expense associated with the Company’s performance units at June 30, 2022 was approximately $8.7 million and is expected to be recognized over a weighted average period of approximately 2.0 years.

Non-cash Compensation Expense

The following table summarizes the amount recorded in general and administrative expenses in the accompanying Consolidated Statements of Operations for the amortization of restricted shares of common stock, LTIP units, performance units, and the Company’s director compensation for the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Non-Cash Compensation Expense (in thousands)	2022		2021		2022		2021
Restricted shares of common stock	$	565	$	586	$	1,113	$	1,237
LTIP units	1,367		2,346		2,651		4,754
Performance units	1,364		1,484		2,660		2,922
Director compensation(1)	125		123		246		241
Total non-cash compensation expense	$	3,421	$	4,539	$	6,670	$	9,154

(1)All of the Company’s independent directors elected to receive shares of common stock in lieu of cash for their service during the three and six months ended June 30, 2022 and 2021. The number of shares of common stock granted was calculated based on the trailing ten day average common stock price on the third business day preceding the grant date.

9. Leases

Lessor Leases

The Company has operating leases in which it is the lessor for its rental property. Certain leases contain variable lease payments based upon changes in the Consumer Price Index (“CPI”). Billings for real estate taxes and other expenses are also considered to be variable lease payments. Certain leases contain options to renew or terminate the lease, and options for the lessee to purchase the rental property, all of which are predominately at the sole discretion of the lessee.

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The following table summarizes the components of rental income included in the accompanying Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Rental Income (in thousands)	2022		2021		2022		2021
Fixed lease payments	$	124,593	$	103,778	$	244,833	$	204,957
Variable lease payments	32,714		29,639		66,492		58,883
Straight-line rental income	3,728		4,718		8,232		9,600
Net increase (decrease) to rental income related to above and below market lease amortization	22		(330)		101		(1,810)
Total rental income	$	161,057	$	137,805	$	319,658	$	271,630

The Company evaluates its operating leases to determine if it is probable it will collect substantially all of the lessee’s remaining lease payments under the lease term. For those that are not probable of collection, the Company converts to the cash basis of accounting. If the Company subsequently determines that it is probable it will collect substantially all of the lessee’s remaining lease payments under the lease term, the Company will reinstate the accrued rent balance adjusting for the amount related to the period when the lease was accounted for on a cash basis.

As of June 30, 2022 and December 31, 2021, the Company had accrued rental income of approximately $84.0 million and $75.8 million, respectively, included in tenant accounts receivable on the accompanying Consolidated Balance Sheets.

As of June 30, 2022 and December 31, 2021, the Company had approximately $30.7 million and $32.9 million, respectively, of total lease security deposits available in the form of existing letters of credit, which are not reflected on the accompanying Consolidated Balance Sheets. As of June 30, 2022 and December 31, 2021, the Company had approximately $0.7 million and $0.7 million, respectively, of lease security deposits available in cash, which are included in restricted cash on the accompanying Consolidated Balance Sheets. The Company’s remaining lease security deposits are commingled in cash and cash equivalents. These funds may be used to settle tenant accounts receivables in the event of a default under the related lease. As of June 30, 2022 and December 31, 2021, the Company’s total liability associated with these lease security deposits was approximately $17.1 million and $15.2 million, respectively, which is included in tenant prepaid rent and security deposits on the accompanying Consolidated Balance Sheets.

The Company estimates that billings for real estate taxes, which are the responsibility of certain tenants under the terms of their leases and are not reflected on the Company’s consolidated financial statements, was approximately $5.6 million, $11.0 million $5.3 million and $10.4 million for the three and six months ended June 30, 2022 and 2021, respectively. These amounts would have been the maximum real estate tax expense of the Company, excluding any penalties or interest, had the tenants not met their contractual obligations for these periods.

The following table summarizes the maturity of fixed lease payments under the Company’s leases as of June 30, 2022.

Year	Maturity of Fixed Lease Payments (in thousands)
Remainder of 2022	$	252,326
2023	$	492,202
2024	$	443,585
2025	$	384,636
2026	$	318,421
Thereafter	$	1,057,107

Lessee Leases

The Company has operating leases in which it is the lessee for its ground leases and corporate office leases. These leases have remaining lease terms of approximately 0.9 years to 48.2 years. Certain ground leases contain options to extend the leases for ten years to 20 years, all of which are reasonably certain to be exercised, and are included in the computation of the Company’s right-of-use assets and operating lease liabilities.

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The following table summarizes supplemental information related to operating lease right-of-use assets and operating lease liabilities recognized in the Company’s Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021.

Operating Lease Term and Discount Rate	June 30, 2022		December 31, 2021
Weighted average remaining lease term (years)	31.0		29.0
Weighted average discount rate	6.7	%	6.6	%

The following table summarizes the operating lease cost included in the Company’s Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Operating Lease Cost (in thousands)	2022		2021		2022		2021
Operating lease cost included in property expense attributable to ground leases	$	605	$	417	$	1,138	$	834
Operating lease cost included in general and administrative expense attributable to corporate office leases	436		429		873		858
Total operating lease cost	$	1,041	$	846	$	2,011	$	1,692

The following table summarizes supplemental cash flow information related to operating leases in the Company’s Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021.

	Six months ended June 30,
Operating Leases (in thousands)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities (operating cash flows)	$	1,850	$	952

The following table summarizes the maturity of operating lease liabilities under the Company’s ground leases and corporate office leases as of June 30, 2022.

Year	Maturity of Operating Lease Liabilities(1) (in thousands)
Remainder of 2022	$	1,934
2023	3,875
2024	3,914
2025	3,959
2026	2,993
Thereafter	83,985
Total lease payments	100,660
Less: Imputed interest	(64,766)
Present value of operating lease liabilities	$	35,894

(1)Operating lease liabilities do not include estimates of CPI rent changes required by certain ground lease agreements. Therefore, actual payments may differ from those presented.

10. Earnings Per Share

During the three and six months ended June 30, 2022 and 2021, there were 162,891, 164,068, 202,171 and 200,501 unvested restricted shares of common stock (on a weighted average basis), respectively, that were considered participating securities for the purposes of computing earnings per share.

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The following table reconciles the numerators and denominators in the computation of basic and diluted earnings per share of common stock for the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Earnings Per Share (in thousands, except per share data)	2022		2021		2022		2021
Numerator
Net income attributable to common stockholders	$	32,317	$	32,576	$	85,081	$	53,507
Denominator
Weighted average common shares outstanding — basic	179,049		159,736		178,442		159,086
Effect of dilutive securities(1)
Share-based compensation	95		584		144		467
Shares issuable under forward sales agreements	—		1,047		—		696
Weighted average common shares outstanding — diluted	179,144		161,367		178,586		160,249
Net income per share — basic and diluted
Net income per share attributable to common stockholders — basic	$	0.18	$	0.20	$	0.48	$	0.34
Net income per share attributable to common stockholders — diluted	$	0.18	$	0.20	$	0.48	$	0.33

(1)During the three and six months ended June 30, 2022 and 2021, there were approximately 163, 164, 202 and 201, unvested restricted shares of common stock (on a weighted average basis), respectively, that were not included in the computation of diluted earnings per share because the allocation of income under the two-class method was more dilutive.

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.

The Company has letters of credit of approximately $3.6 million as of June 30, 2022 related to construction projects and certain other agreements.

12. Subsequent Events

The following non-recognized subsequent events were noted.

On July 26, 2022, the Company entered into an amended and restated credit agreement for the unsecured credit facility (the “July 2022 Credit Agreement”), which provided for an increase in the aggregate commitments available for borrowing under the unsecured credit facility from $750.0 million to up to $1.0 billion. The July 2022 Credit Agreement also provided for the replacement of one-month LIBOR for one-month Secured Overnight Financing Rate (“SOFR”), plus a 0.10% adjustment. Other than the increase in the borrowing commitments and the interest rate provisions described above, the material terms of the unsecured credit facility remain unchanged.

On July 26, 2022, the Company entered into separate loan agreements for (i) a new $187.5 million unsecured term loan with Bank of America, N.A. and the other lenders party thereto (“Unsecured Term Loan H”), and (i) a new $187.5 million unsecured term loan with Wells Fargo Bank, National Association, and the other lenders party thereto (“Unsecured Term Loan I”). In connection with the new unsecured term loans, the $150.0 million Unsecured Term Loan D and the $175.0 million Unsecured Term Loan E were repaid in full. Each of the Unsecured Term Loan H and the Unsecured Term Loan I bears a current annual interest rate of one-month SOFR, plus a 0.10% adjustment and a spread of 0.85% based on the Company’s debt rating and leverage ratio (as defined in the loan agreement), and matures on January 25, 2028. On July 27, 2022, the Company entered into seven interest rate swaps with a total notional amount of $375.0 million that fix SOFR at 2.579% on the new unsecured term loans. The new interest rate swap with a notional amount of $50.0 million is effective on July 27, 2022 and matures on January 25, 2028. The remaining interest rate swaps become effective on January 4, 2023 and January 12, 2024 upon the maturity of the interest rate swaps previously designated to the Unsecured Term Loan D and Unsecured Term Loan E, respectively, and mature on January 25, 2028.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion with the financial statements and related notes included elsewhere in Item 1 of this report and the audited financial statements and related notes thereto included in our most recent Annual Report on Form 10-K.

As used herein, except where the context otherwise requires, “Company,” “we,” “our” and “us,” refer to STAG Industrial, Inc. and our consolidated subsidiaries and partnerships, including our operating partnership, STAG Industrial Operating Partnership, L.P. (the “Operating Partnership”). 

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 (the “Securities Act”), 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, capitalization rates on future acquisitions, 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:

•the factors included in our Annual Report on Form 10-K for the year ended December 31, 2021, as updated elsewhere is 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;”

•the ongoing adverse effects of the public health crisis of the novel coronavirus disease (“COVID-19”) pandemic, or any future pandemic, epidemic or outbreak of infectious disease, on the financial condition, results of operations, cash flows and performance of the Company and its tenants, the real estate market and the global economy and financial markets;

•our ability to raise equity capital on attractive terms;

•the competitive environment in which we operate;

•real estate risks, including fluctuations in real estate values, the general economic climate in local markets and competition for tenants in such markets, and the repurposing or redevelopment of retail properties into industrial properties (in part or whole);

•decreased rental rates or increased vacancy rates;

•potential defaults (including bankruptcies or insolvency) on or non-renewal of leases by tenants;

•acquisition risks, including our ability to identify and complete accretive acquisitions and/or failure of such acquisitions to perform in accordance with projections;

•the timing of acquisitions and dispositions;

•technological developments, particularly those affecting supply chains and logistics;

•potential natural disasters, epidemics, pandemics, and other potentially catastrophic events such as acts of war and/or terrorism (including the conflict between Russia and Ukraine and the related impact on macroeconomic conditions as a result of such conflict);

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•international, national, regional and local economic conditions;

•the general level of interest rates and currencies;

•potential changes in the law or governmental regulations and interpretations of those laws and regulations, including changes in real estate and zoning laws or real estate investment trust (“REIT”) or corporate income tax laws, and potential increases in real property tax rates; 

•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; 

•credit risk in the event of non-performance by the counterparties to the interest rate swaps and revolving and unfunded debt;

•how and when pending forward equity sales may settle;

•lack of or insufficient amounts of insurance;

•our ability to maintain our qualification as a REIT;

•our ability to retain key personnel; 

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

•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. Moreover, you should interpret many of the risks identified in this report, as well as the risks set forth above, as being heightened as a result of the ongoing and numerous adverse impacts of the COVID-19 pandemic. 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.

Certain Definitions

In this report:

“GAAP” means generally accepted accounting principles in the United States.

“Total annualized base rental revenue” means the contractual monthly base rent as of June 30, 2022 (which differs from rent calculated in accordance with GAAP) multiplied by 12. If a tenant is in a free rent period as of June 30, 2022, the total annualized base rental revenue is calculated based on the first contractual monthly base rent amount multiplied by 12.

“Occupancy rate” means the percentage of total leasable square footage for which either revenue recognition has commenced in accordance with GAAP or the lease term has commenced as of the close of the reporting period, whichever occurs earlier.

“Value Add Portfolio” means our properties that meet any of the following criteria: (i) less than 75% occupied as of the acquisition date (ii) will be less than 75% occupied due to known move-outs within two years of the acquisition date; (iii) out of service with significant physical renovation of the asset; or (iv) development.

“Stabilization” for properties under development or being redeveloped means, the earlier of achieving 90% occupancy or 12 months after completion. With respect to properties acquired and immediately added to the Value Add Portfolio, (i) if acquired with less than 75% occupancy as of the acquisition date, Stabilization will occur upon the earlier of achieving 90% occupancy or 12 months from the acquisition date; or (ii) if acquired and will be less than 75% occupied due to known move-outs within two years of the acquisition date, Stabilization will occur upon the earlier of achieving 90% occupancy after the known move-outs have occurred or 12 months after the known move-outs have occurred.

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“Operating Portfolio” means all warehouse and light manufacturing assets that were acquired stabilized or have achieved Stabilization. The Operating Portfolio excludes non-core flex/office assets, assets contained in the Value Add Portfolio, and assets classified as held for sale.

“Comparable Lease” means a lease in the same space with a similar lease structure as compared to the previous in-place lease, excluding new leases for space that was not occupied under our ownership.

“SL Rent Change” means the percentage change in the average monthly base rent over the term of the lease that commenced during the period compared to the Comparable Lease for assets included in the Operating Portfolio. Rent under gross or similar type leases are converted to a net rent based on an estimate of the applicable recoverable expenses, and this calculation excludes the impact of any holdover rent.

“Cash Rent Change” means the percentage change in the base rent of the lease commenced during the period compared to the base rent of the Comparable Lease for assets included in the Operating Portfolio. The calculation compares the first base rent payment due after the lease commencement date compared to the base rent of the last monthly payment due prior to the termination of the lease, excluding holdover rent. Rent under gross or similar type leases are converted to a net rent based on an estimate of the applicable recoverable expenses.

“New Lease” means a lease that is signed for an initial term equal to or greater than 12 months for any vacant space, including a lease signed by a new tenant or an existing tenant that is expanding into new (additional) space.

“Renewal Lease” means a lease signed by an existing tenant to extend the term for 12 months or more, including (i) a renewal of the same space as the current lease at lease expiration, (ii) a renewal of only a portion of the current space at lease expiration, or (iii) an early renewal or workout, which ultimately does extend the original term for 12 months or more.

Overview

We are a real estate operating company focused on the acquisition, ownership, and operation of industrial properties throughout the United States. We are a Maryland corporation and our common stock is publicly traded on the New York Stock Exchange under the symbol “STAG.”

We are organized and conduct our operations to maintain our qualification as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended, and generally are not subject to federal income tax to the extent we currently distribute our income to our stockholders and maintain our qualification as a REIT. We remain subject to state and local taxes on our income and property and to U.S. federal income and excise taxes on our undistributed income.

We recently effected a previously announced management succession. On July 1, 2022, William R. Crooker became our Chief Executive Officer, in addition to his role as President, and was appointed to our board of directors. In connection with Mr. Crooker’s promotion, Benjamin S. Butcher resigned from the role of Chief Executive Officer and became Executive Chair of the board of directors. As Chief Executive Officer, Mr. Crooker leads and manages our business, executes the strategies developed by management and the board and serves as the chief spokesperson to our employees, stockholders and business counterparties. As Executive Chair, Mr. Butcher manages the business of the board, regularly consults with Mr. Crooker on key corporate matters and serves as a liaison between the Board and the management team.

Factors That May Influence Future Results of Operations

Our ability to increase revenues or cash flow will depend in part on our (i) external growth, specifically our acquisition activity, and (ii) internal growth, specifically our portfolio occupancy and rental rates. A variety of other factors, including those noted below, also may affect our future results of operations.

COVID-19 Pandemic

Since March 2020, the COVID-19 pandemic has severely harmed global economic activity, caused significant volatility and negative pressure in financial markets, and negatively impacted almost every industry, including the real estate industry and the industries of our tenants, directly or indirectly.

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We did not incur significant disruptions or enter into any rent deferral agreements from the COVID-19 pandemic during the three and six months ended June 30, 2022. We will continue to evaluate tenant rent relief requests on an individual basis, considering a number of factors. Not all tenant requests will ultimately result in modified agreements, nor are we foregoing our contractual rights under our lease agreements.

The COVID-19 pandemic or a future pandemic, epidemic or outbreak of infectious disease affecting states or regions in which we or our tenants operate could have material and adverse effects on our business, financial condition, results of operations and cash flows due to, among other factors: health or other government authorities requiring the closure of offices or other businesses or instituting quarantines of personnel as the result of, or in order to avoid, exposure to a contagious disease; disruption in supply and delivery chains; a general decline in business activity and demand for real estate; reduced economic activity, general economic decline or recession, which may impact our tenants’ businesses, financial condition and liquidity and may cause one or more of our tenants to be unable to make rent payments to us timely, or at all, or to otherwise seek modifications of lease obligations; difficulty accessing debt and equity capital on attractive terms, or at all, and a severe disruption and instability in the global financial markets or deteriorations in credit and financing conditions, which may affect our access to capital necessary to fund business operations or address maturing liabilities on a timely basis; and the potential negative impact on the health of our personnel, particularly if a significant number of our employees are impacted, which would result in a deterioration in our ability to ensure business continuity during a disruption.

The extent to which the COVID-19 pandemic or any other pandemic, epidemic or disease impacts our operations and those of our tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including among others, the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures. Nevertheless, the COVID-19 pandemic (or a future pandemic, epidemic or disease) presents material uncertainty and risk with respect to our business, financial condition, results of operations and cash flows.

Outlook

Our business is affected by the uncertainty regarding the current high inflationary, rising interest rate environment, COVID-19 pandemic, and geopolitical tensions in Europe. These factors are key drivers of recent financial market volatility, continued supply chain bottlenecks, and slower economic growth. In the first quarter of 2022, U.S. GDP declined by 1.6%, while labor conditions remained strong with an unemployment rate at 3.6%. During the second quarter, the general consensus among economists suggests that we should expect a higher recession risk to continue over the next year. While the macro-economic conditions continue to evolve and impact our tenants, we believe we will continue to benefit from having a well-diversified portfolio across various markets, tenant industries, and lease terms. Additionally, we believe that the COVID-19 pandemic and geopolitical tensions are accelerating a number of trends that positively impact U.S. industrial demand.

Over the course of the COVID-19 pandemic, the U.S. federal and state governments, as well as the Federal Reserve, responded to the profoundly uncertain outlook with a series of fiscal and monetary policies to ease the economic burden of COVID-19 closures on businesses and individuals. During the first six months of 2022, given the historically high inflation levels and strong employment reports, the Federal Reserve shifted away from an expansionary monetary policy. In accordance with that shift in policy, the Federal Reserve has raised interest rates several times in 2022, including by 25 basis points in March, 50 basis points in May and 75 basis points in June, resulting in a range between 1.5% to 1.75% as of June 30, 2022. The Federal Reserve indicates monetary policy will continue to tighten with higher interest rates and a shrinking of Federal Reserve balance sheet until inflation measures approach its long-term targets.

We believe that the current economic environment, while volatile, will provide us with an opportunity to demonstrate the diversification of our portfolio. Specifically, we believe our existing portfolio should benefit from competitive rental rates and strong occupancy. In addition to our diversified portfolio, we believe that certain characteristics of our business and capital structure should position us well in an uncertain environment, including, among others, our minimal amount of floating rate debt (taking into account our hedging activities) and ample liquidity.

Due to the ongoing COVID-19 pandemic, we expect acceleration in a number of industrial specific trends will continue to support long-term demand for industrial properties, including:

•the rise of e-commerce (as compared to the traditional retail store distribution model) and the concomitant demand by e-commerce industry participants for well-located, functional distribution space;

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•the increasing attractiveness of the United States as a manufacturing and distribution location because of the size of the U.S. consumer market, an increase in overseas labor costs, a desire for greater supply chain resilience and redundancy and the overall cost of supplying and shipping goods (i.e. the shortening and fattening of the supply chain); and

•the overall quality of the transportation infrastructure in the United States.

Our portfolio continues to benefit from historically low availability throughout the national industrial market. While the COVID-19 pandemic has caused both positive and negative impacts at varying levels across different industries and geographies, the rise of e-commerce, actions taken by federal and state governments and the Federal Reserve, and the recent economic recovery have resulted in strong demand for industrial space. We believe that the diversification of our portfolio by market, tenant industry, and tenant credit will prove to be a strength in this environment. Industrial development continues to be concentrated in the larger primary markets and, after a brief deceleration, it has returned to and exceeded pre-COVID-19 pandemic levels. We will continue to monitor the supply and demand fundamentals for industrial real estate and assess its impact on our business.

Conditions in Our Markets

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

Rental Income

We receive income primarily in the form of rental income from the tenants who occupy our buildings. The amount of rental income generated by the buildings in our portfolio depends principally on occupancy and rental rates. During the three and six months ended June 30, 2022, the SL Rent Change on New Leases and Renewal Leases in the Operating Portfolio together grew approximately 21.9% and 23.6%, respectively. During the three and six months ended June 30, 2022, the Cash Rent Change on New Leases and Renewal Leases in the Operating Portfolio together grew approximately 14.1% and 14.6%, respectively.

Future economic 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, including those brought on by the COVID-19 pandemic, could adversely affect our ability to maintain or increase rental rates at our buildings. Our ability to lease our properties and the attendant rental rate is dependent upon, among other things, (i) the overall economy, (ii) the supply/demand dynamic in our markets, (iii) the quality of our properties, including age, clear height, and configuration, and (iv) our tenants’ ability to meet their contractual obligations to us.

The following table summarizes the Operating Portfolio leases that commenced during the three and six months ended June 30, 2022. Any rental concessions in such leases are accounted for on a straight-line basis over the term of the lease.

Operating Portfolio	Square Feet	Cash Basis Rent Per Square Foot		SL Rent Per Square Foot		Total Costs Per Square Foot(1)		Cash Rent Change		SL Rent Change		Weighted Average Lease Term(2) (years)	Rental Concessions per Square Foot(3)
Three months ended June 30, 2022
New Leases	1,312,102	$	4.51	$	4.65	$	1.64	14.8	%	22.0	%	4.4	$	0.11
Renewal Leases	1,915,146	$	4.94	$	5.17	$	0.81	13.7	%	21.9	%	4.1	$	0.20
Total/weighted average	3,227,248	$	4.76	$	4.96	$	1.15	14.1	%	21.9	%	4.3	$	0.17
Six months ended June 30, 2022
New Leases	2,491,326	$	5.24	$	5.50	$	2.58	20.2	%	29.6	%	5.7	$	0.66
Renewal Leases	3,875,818	$	4.96	$	5.25	$	0.88	11.2	%	19.8	%	5.0	$	0.15
Total/weighted average	6,367,144	$	5.07	$	5.35	$	1.54	14.6	%	23.6	%	5.3	$	0.35

(1)"Total Costs" means the costs for improvements of vacant and renewal spaces, as well as the contingent-based legal fees and commissions for leasing transactions. Total Costs per square foot represent the total costs expected to be incurred on the leases that commenced during the period and do not reflect actual expenditures for the period.

(2)"Weighted average lease term" means the contractual lease term in years, assuming that tenants do not exercise any renewal options, purchase options, or early termination rights, weighted by square footage.

(3)Represents the total rental concessions for the entire lease term.

Additionally, for the three and six months ended June 30, 2022, leases related to the Value Add Portfolio and first generation leasing, with a total of 237,123 and 748,359 square feet, are excluded from the Operating Portfolio statistics above.

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Property Operating Expenses

Our property operating expenses generally consist of utilities, real estate taxes, management fees, insurance, and site repair and maintenance costs. For the majority of our tenants, our property operating 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 building and its operation during the lease term, including utilities, taxes, insurance, and maintenance costs, but typically excluding roof and building structure. However, we also have modified gross leases and gross leases in our building portfolio, which may require us to absorb certain building related expenses of our tenants. In our modified gross leases, we are responsible for certain building related expenses during the lease term, but most of the expenses are passed through to the tenant for reimbursement to us. In our gross leases, we are responsible for all expenses related to the building and its operation during the lease term. Our overall performance will be affected by the extent to which we are able to pass-through property operating expenses to our tenants.

Scheduled Lease Expirations

Our ability to re-lease space subject to expiring leases impacts our results of operations and will be affected by economic and competitive conditions in our markets and by the desirability of our individual buildings. Leases that comprise approximately 7.2% of our annualized base rental revenue will expire during the period from July 1, 2022 to June 30, 2023, excluding month-to-month leases. We assume, based upon internal renewal probability estimates that some of our tenants will renew and others will vacate and the associated space will be re-let subject to downtime assumptions. Using the aforementioned assumptions, we expect that the rental rates on the respective new leases will be greater than the rates under existing leases expiring during the period July 1, 2022 to June 30, 2023, thereby resulting in an increase in revenue from the same space.

The following table summarizes lease expirations for leases in place as of June 30, 2022, plus available space, for each of the ten calendar years beginning with 2022 and thereafter in our portfolio. The information in the table assumes that tenants do not exercise renewal options or early termination rights.

Lease Expiration Year	Number of Leases Expiring	Total Rentable Square Feet	% of Total Occupied Square Feet		Total Annualized Base Rental  Revenue (in thousands)		% of Total Annualized Base Rental Revenue
Available	—	2,071,543	—		—		—
Month-to-month leases	5	499,933	0.5	%	$	2,199	0.4	%
Remainder of 2022	24	2,399,250	2.2	%	11,419		2.2	%
2023	86	11,027,366	10.1	%	49,215		9.5	%
2024	102	13,937,975	12.7	%	65,475		12.5	%
2025	93	13,525,906	12.4	%	61,151		11.6	%
2026	107	16,662,534	15.2	%	80,440		15.3	%
2027	82	13,086,216	12.0	%	62,628		11.9	%
2028	50	7,464,890	6.8	%	34,657		6.6	%
2029	43	7,210,849	6.5	%	34,903		6.6	%
2030	27	3,763,278	3.4	%	21,646		4.1	%
2031	40	7,292,855	6.7	%	34,795		6.6	%
Thereafter	52	12,559,435	11.5	%	66,811		12.7	%
Total	711	111,502,030	100.0	%	$	525,339	100.0	%

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Portfolio Acquisitions

The following table summarizes our acquisitions during the three and six months ended June 30, 2022.

Market(1)	Date Acquired	Square Feet	Number of Buildings	Purchase Price (in thousands)
Kansas City, MO	January 6, 2022	702,000	1	$	60,428
Chicago, IL	January 31, 2022	72,499	1	8,128
Columbus, OH	February 8, 2022	138,213	1	11,492
Cleveland, OH	February 8, 2022	136,800	1	13,001
Nashville, TN	March 10, 2022	109,807	1	12,810
Greenville/Spartanburg, SC	March 10, 2022	289,103	1	28,274
Memphis, TN	March 18, 2022	195,622	1	15,828
Greenville/Spartanburg, SC	March 18, 2022	155,717	1	16,390
Three months ended March 31, 2022		1,799,761	8	$	166,351
Atlanta, GA	April 1, 2022	210,858	1	21,119
Minneapolis/St. Paul, MN	April 4, 2022	160,000	1	13,472
West Michigan, MI	April 14, 2022	211,125	2	12,274
Pittsburgh, PA	April 19, 2022	400,000	1	50,178
Greenville/Spartanburg, SC(2)	April 22, 2022	—	—	5,559
Birmingham, AL	May 5, 2022	67,168	1	7,871
South Bay/San Jose, CA	June 7, 2022	175,325	1	29,630
Washington, DC	June 29, 2022	140,555	1	20,257
Hampton Roads, VA	June 29, 2022	102,512	1	10,561
Three months ended June 30, 2022		1,467,543	9	$	170,921
Six months ended June 30, 2022		3,267,304	17	$	337,272

(1) As defined by CoStar Realty Information Inc (“CoStar”). If the building is located outside of a CoStar defined market, the city and state is reflected.

(2) We acquired vacant land parcels.

Portfolio Dispositions

During the six months ended June 30, 2022, we sold two building and one land parcel comprised of approximately 0.3 million rentable square feet with a net book value of approximately $14.1 million to third parties. Net proceeds from the sales of rental property were approximately $38.4 million and we recognized the full gain on the sales of rental property, net, of approximately $24.3 million for the six months ended June 30, 2022.

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Top Markets

The following table summarizes information about the 20 largest markets in our portfolio based on total annualized base rental revenue as of June 30, 2022.

Top 20 Markets(1)	% of Total Annualized Base Rental Revenue
Chicago, IL	7.5	%
Philadelphia, PA	7.3	%
Greenville/Spartanburg, SC	5.4	%
Milwaukee/Madison, WI	4.4	%
Pittsburgh, PA	4.2	%
Detroit, MI	4.0	%
Columbus, OH	4.0	%
Minneapolis/St Paul, MN	3.9	%
Houston, TX	2.9	%
Charlotte, NC	2.5	%
West Michigan, MI	2.5	%
Indianapolis, IN	2.2	%
El Paso, TX	2.2	%
Cincinnati/Dayton, OH	1.9	%
Cleveland, OH	1.9	%
Boston, MA	1.8	%
Kansas City, MO	1.8	%
Washington, DC	1.7	%
Columbia, SC	1.6	%
Westchester/So Connecticut, CT/NY	1.5	%
Total	65.2	%

(1) As defined by CoStar.

Top Industries

The following table summarizes information about the 20 largest tenant industries in our portfolio based on total annualized base rental revenue as of June 30, 2022.

Top 20 Tenant Industries(1)	% of Total Annualized Base Rental Revenue
Air Freight & Logistics	11.3	%
Containers & Packaging	8.0	%
Auto Components	7.2	%
Commercial Services & Supplies	5.3	%
Trading Companies & Distribution (Industrial Goods)	5.2	%
Machinery	5.1	%
Internet & Direct Market Retail	4.8	%
Distributors (Consumer Goods)	4.5	%
Household Durables	4.4	%
Food & Staples Retailing	3.5	%
Media	3.3	%
Building Products	3.1	%
Specialty Retail	2.9	%
Chemicals	2.3	%
Electronic Equip, Instruments	2.2	%
Road & Rail	2.1	%
Food Products	2.0	%
Beverages	2.0	%
Textiles, Apparel, Luxury Goods	1.9	%
Health Care Equipment & Supplies	1.8	%
Total	82.9	%

(1) Industry classification based on Global Industry Classification Standard methodology.

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Top Tenants

The following table summarizes information about the 20 largest tenants in our portfolio based on total annualized base rental revenue as of June 30, 2022.

Top 20 Tenants(1)	Number of Leases	% of Total Annualized Base Rental Revenue
Amazon	7	3.1	%
Eastern Metal Supply, Inc.	5	1.0	%
American Tire Distributors, Inc.	7	0.9	%
FedEx Corporation	4	0.9	%
Tempur Sealy International, Inc.	2	0.9	%
Lippert Component Manufacturing	5	0.8	%
Kenco Logistic Services, LLC	3	0.8	%
Penguin Random House, LLC	1	0.7	%
Westrock Company	7	0.7	%
DS Smith North America	2	0.7	%
GXO Logistics, Inc.	2	0.7	%
DHL Supply Chain	4	0.7	%
LKQ Corporation	4	0.7	%
Ford Motor Company	1	0.7	%
Iron Mountain Information Management	5	0.7	%
Carolina Beverage Group	3	0.6	%
Yanfeng US Automotive Interior	2	0.6	%
Hachette Book Group, Inc.	1	0.6	%
Packaging Corp of America	5	0.6	%
Schneider Electric USA, Inc.	3	0.6	%
Total	73	17.0	%

(1) Includes tenants, guarantors, and/or non-guarantor parents.

Critical Accounting Policies

See “Critical Accounting Policies” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2021 for a discussion of our critical accounting policies and estimates.

Results of Operations

The following discussion of the results of our same store (as defined below) net operating income (“NOI”) should be read in conjunction with our consolidated financial statements included in this report. For a detailed discussion of NOI, including the reasons management believes NOI is useful to investors, see “Non-GAAP Financial Measures” below. 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. We encourage the reader to not only look at our same store results, but also our total portfolio results, due to historic and future growth.

We define same store properties as properties that were in the Operating Portfolio for the entirety of the comparative periods presented. The results for same store properties exclude termination fees, solar income, and other income adjustments. Same store properties exclude Operating Portfolio properties with expansions placed into service after December 31, 2020. On June 30, 2022, we owned 459 industrial buildings consisting of approximately 93.2 million square feet and representing approximately 83.6% of our total portfolio, that are considered our same store portfolio in the analysis below. Same store occupancy increased approximately 1.1% to 98.7% as of June 30, 2022 compared to 97.6% as of June 30, 2021.

Comparison of the three months ended June 30, 2022 to the three months ended June 30, 2021

The following table summarizes selected operating information for our same store portfolio and our total portfolio for the three months ended June 30, 2022 and 2021 (dollars in thousands). This table includes a reconciliation from our same store portfolio to our total portfolio by also providing information for the three months ended June 30, 2022 and 2021 with respect to the buildings acquired and sold after December 31, 2020, Operating Portfolio buildings with expansions placed into service or transferred from the Value Add Portfolio to the Operating Portfolio after December 31, 2020, and our flex/office buildings, Value Add Portfolio, and buildings classified as held for sale.

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	Same Store Portfolio								Acquisitions/Dispositions				Other				Total Portfolio
	Three months ended June 30,				Change				Three months ended June 30,				Three months ended June 30,				Three months ended June 30,				Change
	2022		2021		$		%		2022		2021		2022		2021		2022		2021		$		%
Revenue
Operating revenue
Rental income	$	131,020	$	129,436	$	1,584	1.2	%	$	23,675	$	4,941	$	6,362	$	3,428	$	161,057	$	137,805	$	23,252	16.9	%
Other income	57		172		(115)		(66.9)	%	1		—		385		450		443		622		(179)		(28.8)	%
Total operating revenue	131,077		129,608		1,469		1.1	%	23,676		4,941		6,747		3,878		161,500		138,427		23,073		16.7	%
Expenses
Property	23,229		23,617		(388)		(1.6)	%	4,218		1,255		1,427		484		28,874		25,356		3,518		13.9	%
Net operating income(1)	$	107,848	$	105,991	$	1,857	1.8	%	$	19,458	$	3,686	$	5,320	$	3,394	132,626		113,071		19,555		17.3	%
Other expenses
General and administrative																	12,234		12,578		(344)		(2.7)	%
Depreciation and amortization																	69,279		57,332		11,947		20.8	%
Other expenses																	532		511		21		4.1	%
Total other expenses																	82,045		70,421		11,624		16.5	%
Total expenses																	110,919		95,777		15,142		15.8	%
Other income (expense)
Interest and other income																	23		30		(7)		(23.3)	%
Interest expense																	(17,896)		(15,273)		(2,623)		17.2	%
Gain on the sales of rental property, net																	376		5,976		(5,600)		(93.7)	%
Total other income (expense)																	(17,497)		(9,267)		(8,230)		88.8	%
Net income																	$	33,084	$	33,383	$	(299)	(0.9)	%

(1)For a detailed discussion of NOI, including the reasons management believes NOI is useful to investors, see “Non-GAAP Financial Measures” below.

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Net Income

Net income for our total portfolio decreased by approximately $0.3 million, or 0.9%, to approximately $33.1 million for the three months ended June 30, 2022, compared to approximately $33.4 million for the three months ended June 30, 2021.

Same Store Total Operating Revenue

Same store total operating revenue consists primarily of rental income from (i) fixed lease payments, variable lease payments, straight-line rental income, and above and below market lease amortization from our properties (“lease income”), and (ii) other tenant billings for insurance, real estate taxes and certain other expenses (“other billings”).

For a detailed reconciliation of our same store total operating revenue to net income, see the table above.

Same store rental income, which includes lease income and other billings as discussed below, increased by approximately $1.6 million, or 1.2%, to approximately $131.0 million for the three months ended June 30, 2022 compared to approximately $129.4 million for the three months ended June 30, 2021.

Same store lease income increased by approximately $2.3 million, or 2.1%, to approximately $109.4 million for the three months ended June 30, 2022 compared to approximately $107.1 million for the three months ended June 30, 2021. The increase was primarily due to an increase in rental income of approximately $5.4 million from the execution of new leases and lease renewals with existing tenants and a net decrease in the amortization of net above market leases of approximately $0.3 million. These increases were partially offset by the reduction of base rent of approximately $3.4 million due to tenant vacancies.

Same store other billings decreased by approximately $0.7 million, or 3.1%, to approximately $21.6 million for the three months ended June 30, 2022 compared to approximately $22.3 million for the three months ended June 30, 2021. The decrease was primarily attributable to a decrease of approximately $1.0 million due to a decrease in real estate taxes levied by the taxing authority. This decrease was partially offset by an increase in other expense reimbursements from an increase in corresponding expenses.

Same Store Operating Expenses

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

For a detailed reconciliation of our same store operating expenses to net income, see the table above.

Total same store property operating expenses decreased by approximately $0.4 million, or 1.6%, to approximately $23.2 million for the three months ended June 30, 2022 compared to approximately $23.6 million for the three months ended June 30, 2021. This decrease was primarily related to a decrease in real estate taxes levied by the taxing authority of approximately $0.6 million and other expenses of approximately $0.2 million. These decreases were partially offset by an increase in insurance and snow removal expense of approximately $0.2 million and $0.2 million, respectively.

Acquisitions and Dispositions Net Operating Income

For a detailed reconciliation of our acquisitions and dispositions NOI to net income, see the table above.

Subsequent to December 31, 2020, we acquired 83 buildings consisting of approximately 14.6 million square feet (excluding eight buildings that were included in the Value Add Portfolio at June 30, 2022 or transferred from the Value Add Portfolio to the Operating Portfolio after December 31, 2020), and sold 24 buildings consisting of approximately 3.0 million square feet and one land parcel. For the three months ended June 30, 2022 and 2021, the buildings acquired after December 31, 2020 contributed approximately $19.6 million and $2.0 million to NOI, respectively. For the three months ended June 30, 2022 and 2021, the buildings sold after December 31, 2020 contributed approximately $(0.1) million and $1.7 million to NOI, respectively. Refer to Note 3 in the accompanying Notes to Consolidated Financial Statements for additional discussion regarding buildings acquired or sold.

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Other Net Operating Income

Other assets include our flex/office buildings, Value Add Portfolio, buildings classified as held for sale, and Operating Portfolio buildings with expansions placed in service or transferred from the Value Add Portfolio to the Operating Portfolio after December 31, 2020. Other NOI also includes termination, solar, and other income adjustments from buildings in our same store portfolio.

For a detailed reconciliation of our other NOI to net income, see the table above.

These buildings contributed approximately $3.6 million and $2.7 million to NOI for the three months ended June 30, 2022 and 2021, respectively. Additionally, there was approximately $1.7 million and $0.7 million of termination, solar, and other income adjustments from certain buildings in our same store portfolio for the three months ended June 30, 2022 and 2021, respectively.

Total Other Expenses

Total other expenses consist of general and administrative expenses, depreciation and amortization, and other expenses.

Total other expenses increased approximately $11.6 million, or 16.5%, for the three months ended June 30, 2022 to approximately $82.0 million compared to approximately $70.4 million for the three months ended June 30, 2021. The increase was primarily a result of an increase in depreciation and amortization of approximately $11.9 million due to an increase in the depreciable asset base from net acquisitions. This increase was partially offset by a decrease in general and administrative expenses of approximately $0.3 million which was primarily due to the adoption of our retirement vesting program on January 7, 2021 and related acceleration of equity-based compensation expense for certain eligible employees that did not recur during the three months ended June 30, 2022.

Total Other Income (Expense)

Total other income (expense) consists of interest and other income, interest expense, and gain on the sales of rental property, net. Interest expense includes interest incurred during the period as well as adjustments related to amortization of financing fees and debt issuance costs, and amortization of fair market value adjustments associated with the assumption of debt.

Total other expense increased approximately $8.2 million, or 88.8%, for the three months ended June 30, 2022 to approximately $17.5 million compared approximately $9.3 million for the three months ended June 30, 2021. This increase was primarily a result of a decrease in the gain on the sales of rental property, net of approximately $5.6 million. This increase was also attributable to an increase in interest expense of approximately $2.6 million which is primarily attributable to the issuance of $325.0 million of unsecured notes on September 28, 2021.

Comparison of the six months ended June 30, 2022 to the six months ended June 30, 2021

The following table summarizes selected operating information for our same store portfolio and our total portfolio for the six months ended June 30, 2022 and 2021 (dollars in thousands). This table includes a reconciliation from our same store portfolio to our total portfolio by also providing information for the six months ended June 30, 2022 and 2021 with respect to the buildings acquired and disposed of and Operating Portfolio buildings with expansions placed into service or transferred from the Value Add Portfolio to the Operating Portfolio after December 31, 2020 and our flex/office buildings, Value Add Portfolio and buildings classified as held for sale.

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	Same Store Portfolio								Acquisitions/Dispositions				Other				Total Portfolio
	Six months ended June 30,				Change				Six months ended June 30,				Six months ended June 30,				Six months ended June 30,				Change
	2022		2021		$		%		2022		2021		2022		2021		2022		2021		$		%
Revenue
Operating revenue
Rental income	$	262,929	$	256,638	$	6,291	2.5	%	$	44,720	$	8,222	$	12,009	$	6,770	$	319,658	$	271,630	$	48,028	17.7	%
Other income	336		274		62		22.6	%	—		68		715		450		1,051		792		259		32.7	%
Total operating revenue	263,265		256,912		6,353		2.5	%	44,720		8,290		12,724		7,220		320,709		272,422		48,287		17.7	%
Expenses
Property	49,783		48,308		1,475		3.1	%	8,085		2,854		2,781		1,196		60,649		52,358		8,291		15.8	%
Net operating income(1)	$	213,482	$	208,604	$	4,878	2.3	%	$	36,635	$	5,436	$	9,943	$	6,024	260,060		220,064		39,996		18.2	%
Other expenses
General and administrative																	24,547		25,368		(821)		(3.2)	%
Depreciation and amortization																	136,645		115,739		20,906		18.1	%
Other expenses																	1,029		1,363		(334)		(24.5)	%
Total other expenses																	162,221		142,470		19,751		13.9	%
Total expenses																	222,870		194,828		28,042		14.4	%
Other income (expense)
Interest and other income																	57		62		(5)		(8.1)	%
Interest expense																	(35,155)		(30,631)		(4,524)		14.8	%
Debt extinguishment and modification expenses																	—		(679)		679		(100.0)	%
Gain on the sales of rental property, net																	24,331		12,385		11,946		96.5	%
Total other income (expense)																	(10,767)		(18,863)		8,096		(42.9)	%
Net income																	$	87,072	$	58,731	$	28,341	48.3	%

(1)For a detailed discussion of NOI, including the reasons management believes NOI is useful to investors, see “Non-GAAP Financial Measures” below.

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Net Income

Net income for our total portfolio increased by $28.3 million, or 48.3%, to $87.1 million for the six months ended June 30, 2022 compared to $58.7 million for the six months ended June 30, 2021.

Same Store Total Operating Revenue

Same store total operating revenue consists primarily of rental income consisting of (i) fixed lease payments, variable lease payments, straight-line rental income, and above and below market lease amortization from our properties (“lease income”), and (ii) other tenant billings for insurance, real estate taxes and certain other expenses (“other billings”).

For a detailed reconciliation of our same store total operating revenue to net income, see the table above.

Same store rental income, which is comprised of lease income and other billings as discussed below, increased by approximately $6.3 million, or 2.5%, to approximately $262.9 million for the six months ended June 30, 2022 compared to approximately $256.6 million for the six months ended June 30, 2021.

Same store lease income increased by approximately $4.9 million, or 2.3%, to approximately $217.7 million for the six months ended June 30, 2022 compared to approximately $212.8 million for the six months ended June 30, 2021. Approximately $8.4 million of the increase was attributable to rental increases due to the execution of new leases and lease renewals with existing tenants and a net decrease in the amortization of net above market leases of approximately $0.5 million. These increases were also attributable to an increase in rental income of approximately $1.0 million at one property in which, during the six months ended June 30, 2021, we determined that the future collectability of rental payments was not reasonably assured, and accordingly, we converted to the cash basis of accounting and reversed any accounts receivable and accrued rent balances into rental income and did not recognize revenue for payments that were not received from the tenant. The lease was subsequently terminated and replaced with a new tenant in September 2021, and during the six months ended June 30, 2022, the former tenant repaid the rental amounts past due, both of which contributed to the increase in rental income during the six months ended June 30, 2022 compared to the six months ended June 30, 2021. These increases were partially offset by the reduction of base rent of approximately $5.0 million due to tenant vacancy.

Same store other billings increased by approximately $1.4 million, or 3.2%, to approximately $45.2 million for the six months ended June 30, 2022 compared to approximately $43.8 million for the six months ended June 30, 2021. The increase was attributable to an increase of approximately $2.0 million related to other expense reimbursements due to an increase in corresponding expenses and changes to lease terms where we began paying the operating expenses on behalf of tenants that had previously paid its operating expenses directly to respective vendors. This increase was partially offset by a decrease in real estate taxes levied by the taxing authority of approximately $0.6 million.

Same Store Operating Expenses

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

For a detailed reconciliation of our same store operating expenses to net income, see the table above.

Total same store operating expenses increased by approximately $1.5 million or 3.1% to approximately $49.8 million for the six months ended June 30, 2022 compared to approximately $48.3 million for the six months ended June 30, 2021. This increase was due to increases in utility expense of approximately $0.7 million, insurance expense of approximately $0.3 million, repairs and maintenance expense of approximately $0.2 million, and snow removal expense of approximately $0.2 million.

Acquisitions and Dispositions Net Operating Income

For a detailed reconciliation of our acquisitions and dispositions NOI to net income, see the table above.

Subsequent to December 31, 2020, we acquired 83 buildings consisting of approximately 14.6 million square feet (excluding eight buildings that were included in the Value Add Portfolio at June 30, 2022 or transferred from the Value Add Portfolio to the Operating Portfolio after December 31, 2020), and sold 24 buildings consisting of approximately 3.0 million square feet and one land parcel. For the six months ended June 30, 2022 and June 30, 2021, the buildings acquired after December 31, 2020 contributed approximately $36.5 million and $2.7 million to NOI, respectively. For the six months ended June 30, 2022 and June 30, 2021, the buildings sold after December 31, 2020 contributed approximately $0.1 million and $2.7 million to NOI,

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respectively. Refer to Note 3 in the accompanying Notes to Consolidated Financial Statements for additional discussion regarding buildings acquired or sold.

Other Net Operating Income

Our other assets include our flex/office buildings, Value Add Portfolio, buildings classified as held for sale, and Operating Portfolio buildings with expansions placed in service or transferred from the Value Add Portfolio to the Operating Portfolio after December 31, 2020. Other NOI also includes termination, solar, and other income adjustments from buildings in our same store portfolio.

For a detailed reconciliation of our other NOI to net income, see the table above.

These buildings contributed approximately $7.2 million and $4.9 million to NOI for the six months ended June 30, 2022 and June 30, 2021, respectively. Additionally, there was approximately $2.7 million and $1.1 million of termination, solar, and other income adjustments from certain buildings in our same store portfolio for the six months ended June 30, 2022 and June 30, 2021, respectively.

Total Other Expenses

Total other expenses consist of general and administrative expenses, depreciation and amortization, and other expenses.

Total other expenses increased approximately $19.8 million, or 13.9%, to approximately $162.2 million for the six months ended June 30, 2022 compared to approximately $142.5 million for the six months ended June 30, 2021. This is primarily a result of an increase in depreciation and amortization of approximately $20.9 million as a result of net acquisitions that increased the depreciable asset base. This increase was partially offset by a decrease in general and administrative expenses of approximately $0.8 million which was primarily due to the adoption of our retirement vesting program on January 7, 2021 and related acceleration of equity-based compensation expense for certain eligible employees that did not recur during the six months ended June 30, 2022. Additionally, other expenses decreased approximately $0.3 million that was primarily due to the settlement of litigation related to a terminated acquisition contract during the COVID-19 pandemic that did not recur during the six months ended June 30, 2022.

Total Other Income (Expense)

Total other income (expense) consists of interest and other income, interest expense, debt extinguishment and modification expenses, and gain on the sales of rental property, net. Interest expense includes interest incurred during the period as well as adjustments related to amortization of financing fees and debt issuance costs, and amortization of fair market value adjustments associated with the assumption of debt.

Total other expense decreased approximately $8.1 million, or 42.9%, to approximately $10.8 million for the six months ended June 30, 2022 compared to approximately $18.9 million for the six months ended June 30, 2021. This decrease is primarily the result of an increase in gain on the sales of rental property, net of approximately $11.9 million. This was partially offset by an increase in interest expense of approximately $4.5 million which is primarily attributable to the issuance of $325.0 million of unsecured notes on September 28, 2021.

Non-GAAP Financial Measures

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

Funds From Operations

FFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, and we believe that to understand our performance further, FFO should be compared with our reported net income (loss) in accordance with GAAP, as presented in our consolidated financial statements included in this report.

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We calculate FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (“Nareit”). FFO represents GAAP net income (loss), excluding gains (or losses) from sales of depreciable operating buildings, land sales, 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 it is a widely recognized measure of the performance of REITs. FFO may 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 to 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. In addition, other REITs may not calculate FFO in accordance with the Nareit definition, 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, the nearest GAAP equivalent.

	Three months ended June 30,				Six months ended June 30,
Reconciliation of Net Income to FFO (in thousands)	2022		2021		2022		2021
Net income	$	33,084	$	33,383	$	87,072	$	58,731
Rental property depreciation and amortization	69,225		57,291		136,538		115,630
Gain on the sales of rental property, net	(376)		(5,976)		(24,331)		(12,385)
FFO	101,933		84,698		199,279		161,976
Preferred stock dividends	—		—		—		(1,289)
Redemption of preferred stock	—		—		—		(2,582)
Amount allocated to restricted shares of common stock and unvested units	(145)		(224)		(302)		(461)
FFO attributable to common stockholders and unit holders	$	101,788	$	84,474	$	198,977	$	157,644

Net Operating Income

We consider NOI to be an appropriate supplemental performance measure to net income (loss) because we believe it helps investors and management understand the core operations of our buildings. NOI is defined as rental income, which includes billings for common area maintenance, real estate taxes and insurance, less property expenses and real estate taxes and insurance. 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.

The following table sets forth a reconciliation of our NOI for the periods presented to net income, the nearest GAAP equivalent.

	Three months ended June 30,				Six months ended June 30,
Reconciliation of Net Income to NOI (in thousands)	2022		2021		2022		2021
Net income	$	33,084	$	33,383	$	87,072	$	58,731
General and administrative	12,234		12,578		24,547		25,368
Depreciation and amortization	69,279		57,332		136,645		115,739
Interest and other income	(23)		(30)		(57)		(62)
Interest expense	17,896		15,273		35,155		30,631
Debt extinguishment and modification expenses	—		—		—		679
Other expenses	532		511		1,029		1,363
Gain on the sales of rental property, net	(376)		(5,976)		(24,331)		(12,385)
Net operating income	$	132,626	$	113,071	$	260,060	$	220,064

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Cash Flows

Comparison of the six months ended June 30, 2022 to the six months ended June 30, 2021

The following table summarizes our cash flows for the six months ended June 30, 2022 compared to the six months ended June 30, 2021.

	Six months ended June 30,				Change
Cash Flows (dollars in thousands)	2022		2021		$		%
Net cash provided by operating activities	$	191,188	$	162,373	$	28,815	17.7	%
Net cash used in investing activities	$	334,909	$	202,017	$	132,892	65.8	%
Net cash provided by financing activities	$	136,372	$	37,820	$	98,552	260.6	%

Net cash provided by operating activities increased approximately $28.8 million to approximately $191.2 million for the six months ended June 30, 2022 compared to approximately $162.4 million for the six months ended June 30, 2021. The increase was primarily attributable to incremental operating cash flows from property acquisitions completed after June 30, 2021, and operating performance at existing properties. These increases were partially offset by the loss of cash flows from property dispositions completed after June 30, 2021 and fluctuations in working capital due to the timing of payments and rental receipts.

Net cash used in investing activities increased approximately $132.9 million to approximately $334.9 million for the six months ended June 30, 2022 compared to approximately $202.0 million for the six months ended June 30, 2021. The increase was primarily attributable to the acquisition of 17 buildings and land parcels for a total cash consideration of approximately $337.3 million for the six months ended June 30, 2022 compared to the acquisition of 15 buildings for a total cash consideration of approximately $221.8 million for the six months ended June 30, 2021.

Net cash provided by financing activities increased approximately $98.6 million to approximately $136.4 million for the six months ended June 30, 2022 compared to approximately $37.8 million for the six months ended June 30, 2021. The increase is primarily attributable to the funding of the $400.0 million unsecured note on June 28, 2022 that did not occur during the six months ended June 30, 2021. The increase is also attributable to the redemption of preferred stock with an aggregate liquidation value of $75.0 million during the six months ended June 30, 2021 that did not recur. These increases were partially offset by a net cash outflow of approximately $357.0 million from our unsecured credit facility and an increase of approximately $11.3 million in dividends paid during the six months ended June 30, 2022 compared to the six months ended June 30, 2021, as well as decrease in net proceeds received from the sale of common stock of approximately $8.5 million during the six months ended June 30, 2022 compared to the six months ended June 30, 2021.

Liquidity and Capital Resources

We believe that our liquidity needs will be satisfied through cash flows generated by operations, disposition proceeds, and financing activities. Operating cash flow from rental income, expense recoveries from tenants, and other income from operations is our principal source of funds to pay operating expenses, debt service, recurring capital expenditures, and the distributions required to maintain our REIT qualification. We primarily rely on the capital markets (common and preferred equity and debt securities) to fund our acquisition activity. We seek to increase cash flows from our properties by maintaining quality building standards 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 equity and debt financings, will continue to provide funds for our short-term and medium-term liquidity needs.

Our short-term liquidity requirements consist primarily of funds necessary to pay for operating expenses and other expenditures directly associated with our buildings, including interest expense, interest rate swap payments, scheduled principal payments on outstanding indebtedness, property acquisitions under contract, general and administrative expenses, and capital expenditures including tenant improvements and leasing commissions.

Our long-term liquidity needs, in addition to recurring short-term liquidity needs as discussed above, consist primarily of funds necessary to pay for property acquisitions and scheduled debt maturities. We intend to satisfy our long-term liquidity needs through cash flow from operations, the issuance of equity or debt securities, other borrowings, property dispositions, or, in connection with acquisitions of certain additional buildings, the issuance of common units in the Operating Partnership.

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As of June 30, 2022, we had total immediate liquidity of approximately $643.0 million, comprised of $12.6 million of cash and cash equivalents and $630.4 million of immediate availability on our unsecured credit facility.

After quarter end, on July 26, 2022, we amended and restated our unsecured credit facility to increase the aggregate commitments available for borrowing thereunder from $750.0 million to up to $1.0 billion. Also on July 26, 2022, we entered into two loan agreements maturing in 2028 and totaling $375.0 million in principal and repaid two term loans maturing in 2023 and 2024 and totaling $325.0 million in principal.

In addition, we require funds to pay dividends to holders of our common stock and common units in the Operating Partnership. Any future dividends on our common stock are voluntary and declared in the sole discretion of our board of directors, subject to the distribution requirements to maintain our REIT status for federal income tax purposes, and may be reduced or stopped for any reason, including to use funds for other liquidity requirements. The following table summarizes the dividends declared on our outstanding common stock during the six months ended June 30, 2022.

Month Ended 2022	Declaration Date	Record Date	Per Share		Payment Date
June 30	April 14, 2022	June 30, 2022	$	0.121667	July 15, 2022
May 31	April 14, 2022	May 31, 2022	0.121667		June 15, 2022
April 30	April 14, 2022	April 29, 2022	0.121667		May 16, 2022
March 31	January 10, 2022	March 31, 2022	0.121667		April 18, 2022
February 28	January 10, 2022	February 28, 2022	0.121667		March 15, 2022
January 31	January 10, 2022	January 31, 2022	0.121667		February 15, 2022
Total			$	0.730002

On July 12, 2022, our board of directors declared dividends on our common stock for the months ending July 31, 2022, August 31, 2022, and September 30, 2022 at a monthly rate of $0.121667 per share.

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Indebtedness Outstanding

The following table summarizes certain information with respect to our indebtedness outstanding as of June 30, 2022.

Loan	Principal Outstanding as of June 30, 2022 (in thousands)		Interest  Rate(1)(2)		Maturity Date	Prepayment Terms(3)
Unsecured credit facility:
Unsecured Credit Facility(4)(5)	$	116,000	L + 0.775%		October 23, 2026	i
Total unsecured credit facility	116,000
Unsecured term loans:
Unsecured Term Loan D(6)	150,000		2.85	%	January 4, 2023	i
Unsecured Term Loan E(6)	175,000		3.77	%	January 15, 2024	i
Unsecured Term Loan F	200,000		2.96	%	January 12, 2025	i
Unsecured Term Loan G	300,000		1.13	%	February 5, 2026	i
Unsecured Term Loan A	150,000		2.15	%	March 15, 2027	i
Total unsecured term loans	975,000
Total unamortized deferred financing fees and debt issuance costs	(3,728)
Total carrying value unsecured term loans, net	971,272
Unsecured notes:
Series F Unsecured Notes	100,000		3.98	%	January 5, 2023	ii
Series A Unsecured Notes	50,000		4.98	%	October 1, 2024	ii
Series D Unsecured Notes	100,000		4.32	%	February 20, 2025	ii
Series G Unsecured Notes	75,000		4.10	%	June 13, 2025	ii
Series B Unsecured Notes	50,000		4.98	%	July 1, 2026	ii
Series C Unsecured Notes	80,000		4.42	%	December 30, 2026	ii
Series E Unsecured Notes	20,000		4.42	%	February 20, 2027	ii
Series H Unsecured Notes	100,000		4.27	%	June 13, 2028	ii
Series I Unsecured Notes	275,000		2.80	%	September 29, 2031	ii
Series K Unsecured Notes	400,000		4.12	%	June 28, 2032	ii
Series J Unsecured Notes	50,000		2.95	%	September 28, 2033	ii
Total unsecured notes	1,300,000
Total unamortized deferred financing fees and debt issuance costs	(4,936)
Total carrying value unsecured notes, net	1,295,064
Mortgage notes (secured debt):
Wells Fargo Bank, National Association CMBS Loan	45,603		4.31	%	December 1, 2022	iii
Thrivent Financial for Lutherans	3,363		4.78	%	December 15, 2023	iv
United of Omaha Life Insurance Company	4,844		3.71	%	October 1, 2039	ii
Total mortgage notes	53,810
Less: Net unamortized fair market value discount	(136)
Total unamortized deferred financing fees and debt issuance costs	(39)
Total carrying value mortgage notes, net	53,635
Total / weighted average interest rate(7)	$	2,435,971	3.25	%

(1)Interest rate as of June 30, 2022. At June 30, 2022, the one-month LIBOR (“L”) was 1.78671%. The current interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums. The spread over the applicable rate for our unsecured credit facility and unsecured term loans is based on the our debt rating and leverage ratio, as defined in the respective loan agreements.

(2)The unsecured term loans have a stated interest rate of one-month LIBOR plus a spread of 0.85%, with the exception of Unsecured Term Loan D which has a stated interest rate of one-month LIBOR plus a spread of 1.0%. As of June 30, 2022, one-month LIBOR for the Unsecured Term Loans A, D, E, F, and G was swapped to a fixed rate of 1.30%, 1.85%, 2.92%, 2.11%, and 0.28%, respectively. One-month LIBOR for the Unsecured Term Loan G will be swapped to a fixed rate of 0.94% effective April 18, 2023.

(3)Prepayment terms consist of (i) pre-payable with no penalty; (ii) pre-payable with penalty; (iii) pre-payable without penalty three months prior to the maturity date, subject to defeasance; and (iv) pre-payable without penalty three months prior to the maturity date.

(4)The capacity of our unsecured credit facility is $750.0 million. The initial maturity date is October 24, 2025, or such later date which may be extended pursuant to two six-month extension options exercisable by us in our discretion upon advance written notice. Exercise of each six-month option is subject to the following conditions: (i) absence of a default immediately before the extension and immediately after giving effect to the extension, (ii) accuracy of representations and warranties as of the extension date (both immediately before and after the extension), as if made on the extension date, and (iii) payment of a fee. Neither extension option is subject to lender consent, assuming proper notice and satisfaction of the conditions.

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(5)Subsequent to June 30, 2022, on July 26, 2022, we entered into an amended and restated loan agreement for the unsecured credit facility. See below for additional details.

(6)Subsequent to June 30, 2022, the Unsecured Term Loan D and Unsecured Term Loan E were repaid in full in connection with our new unsecured term loan agreements entered into on July 26, 2022. See below for additional details.

(7)The weighted average interest rate was calculated using the fixed interest rate swapped on the notional amount of $975.0 million of debt, and is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums or discounts.

The aggregate undrawn nominal commitments on our unsecured credit facility and unsecured term loans as of June 30, 2022 was approximately $630.4 million, including issued letters of credit. Our actual borrowing capacity at any given point in time may be less and is restricted to a maximum amount based on our debt covenant compliance.

Our unsecured credit facility, unsecured term loans, unsecured notes, and mortgage notes are subject to ongoing compliance with a number of financial and other covenants. As of June 30, 2022, we were in compliance with the applicable financial covenants.

On July 26, 2022, we entered into an amended and restated credit agreement for our unsecured credit facility (the “July 2022 Credit Agreement”), which provided for an increase in the aggregate commitments available for borrowing under our unsecured credit facility from $750.0 million to up to $1.0 billion. The July 2022 Credit Agreement also provided for the replacement of one-month LIBOR for one-month Secured Overnight Financing Rate (“SOFR”), plus a 0.10% adjustment. Other than the increase in the borrowing commitments and the interest rate provisions described above, the material terms of our unsecured credit facility remain unchanged.

On July 26, 2022, we entered into separate loan agreements for (i) a new $187.5 million unsecured term loan with Bank of America, N.A. and the other lenders party thereto (“Unsecured Term Loan H”), and (i) a new $187.5 million unsecured term loan with Wells Fargo Bank, National Association, and the other lenders party thereto (“Unsecured Term Loan I”). In connection with the new unsecured term loans, the $150.0 million Unsecured Term Loan D and the $175.0 million Unsecured Term Loan E were repaid in full. Each of the Unsecured Term Loan H and the Unsecured Term Loan I bears a current annual interest rate of one-month SOFR, plus a 0.10% adjustment and a spread of 0.85% based on our debt rating and leverage ratio (as defined in the applicable loan agreement), and matures on January 25, 2028. On July 27, 2022, we entered into seven interest rate swaps with a total notional amount of $375.0 million that fix SOFR at 2.579% on the new unsecured term loans. The new interest rate swap with a notional amount of $50.0 million is effective on July 27, 2022 and matures on January 25, 2028. The remaining interest rate swaps become effective on January 4, 2023 and January 12, 2024 upon the maturity of the interest rate swaps previously designated to the Unsecured Term Loan D and Unsecured Term Loan E, respectively, and mature on January 25, 2028.

On April 28, 2022, we entered into a note purchase agreement (the “April 2022 NPA”) for the private placement by our Operating Partnership of $400.0 million senior unsecured notes (the “Series K Unsecured Notes”) maturing June 28, 2032, with a fixed annual interest rate of 4.12%. The April 2022 NPA contains a number of financial covenants substantially similar to the financial covenants contained in our unsecured credit facility and other unsecured notes, plus a financial covenant that requires us to maintain a minimum interest coverage ratio of not less than 1.50:1.00. Our Operating Partnership issued the Series K Unsecured Notes on June 28, 2022. The Company and certain wholly owned subsidiaries of our Operating Partnership are guarantors of the Series K Unsecured Notes.

The following table summarizes our debt capital structure as of June 30, 2022.

Debt Capital Structure	June 30, 2022
Total principal outstanding (in thousands)	$	2,444,810
Weighted average duration (years)	5.0
% Secured debt	2.2		%
% Debt maturing next 12 months	12.1		%
Net Debt to Real Estate Cost Basis(1)	35.8		%

(1)“Net Debt” means amounts outstanding under our unsecured credit facility, unsecured term loans, unsecured notes, and mortgage notes, less cash and cash equivalents. “Real Estate Cost Basis” means the book value of rental property and deferred leasing intangibles, exclusive of the related accumulated depreciation and amortization.

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 fund acquisitions. 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.

Our interest rate exposure on our floating rate debt is managed through the use of interest rate swaps, which fix the rate of our long term floating rate debt. For a detailed discussion on our use of interest rate swaps, see “Interest Rate Risk” below.

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Equity

Preferred Stock

We are authorized to issue up to 20,000,000 shares of preferred stock, par value $0.01 per share. As of June 30, 2022 and December 31, 2021, there were no shares of preferred stock issued or outstanding.

Common Stock

We are authorized to issue up to 300,000,000 shares of common stock, par value $0.01 per share.

The following table summarizes our at-the-market (“ATM”) common stock offering program as of June 30, 2022. Pursuant to the equity distribution agreements for our ATM common stock offering program, we may from time to time sell common stock through sales agents and their affiliates, including shares sold on a forward basis under forward sale agreements. There was no activity under the ATM common stock offering program during the three months ended June 30, 2022.

ATM Common Stock Offering Program	Date	Maximum Aggregate Offering Price (in thousands)		Aggregate Available as of June 30, 2022 (in thousands)
2022 $750 million ATM	February 17, 2022	$	750,000	$	750,000

In connection with our underwritten public offering that closed in November 2021, on December 3, 2021, we executed a forward sale agreement for the sale of an additional 1,200,000 shares of common stock on a forward basis at a price of $41.87 per share. We did not initially receive any proceeds from the sale of shares on a forward basis. On March 29, 2022, we physically settled in full the forward sales agreement by issuing 1,200,000 shares of common stock for net proceeds of approximately $49.7 million, or $41.39 per share.

Noncontrolling Interest

We own our interests in all of our properties and conduct substantially all of our business through the Operating Partnership. We are the sole member of the sole general partner of the Operating Partnership. As of June 30, 2022, we owned approximately 97.9% of the common units in the Operating Partnership, and our current and former executive officers, directors, senior employees and their affiliates, and third parties that contributed properties to us in exchange for common units in the Operating Partnership owned the remaining 2.1%.

Interest Rate Risk

We use interest rate swaps to fix the rate of our variable rate debt. As of June 30, 2022, all of our outstanding variable rate debt, with the exception of our unsecured credit facility, was fixed with interest rate swaps through maturity.

We recognize all derivatives on the balance sheet at fair value. 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 income (loss), which is a component of equity. Derivatives that are not designated as hedges must be adjusted to fair value and the changes in fair value must be reflected as income or expense.

We have established criteria for suitable counterparties in relation to various specific types of risk. We only use counterparties that have a credit rating of no lower than investment grade at swap inception from Moody’s Investor Services, Standard & Poor’s, or Fitch Ratings or other nationally recognized rating agencies.

44

The following table details our outstanding interest rate swaps as of June 30, 2022.

Interest Rate Derivative Counterparty	Trade Date	Effective Date	Notional Amount (in thousands)		Fair Value (in thousands)		Pay Fixed Interest Rate		Receive Variable Interest Rate	Maturity Date
The Toronto-Dominion Bank	Jul-20-2017	Oct-30-2017	$	25,000	$	108	1.8485	%	One-month L	Jan-04-2023
Royal Bank of Canada	Jul-20-2017	Oct-30-2017	$	25,000	$	107	1.8505	%	One-month L	Jan-04-2023
Wells Fargo Bank, N.A.	Jul-20-2017	Oct-30-2017	$	25,000	$	107	1.8505	%	One-month L	Jan-04-2023
PNC Bank, N.A.	Jul-20-2017	Oct-30-2017	$	25,000	$	108	1.8485	%	One-month L	Jan-04-2023
PNC Bank, N.A.	Jul-20-2017	Oct-30-2017	$	50,000	$	216	1.8475	%	One-month L	Jan-04-2023
The Toronto-Dominion Bank	Apr-20-2020	Sep-29-2020	$	75,000	$	1,633	0.2750	%	One-month L	Apr-18-2023
Wells Fargo Bank, N.A.	Apr-20-2020	Sep-29-2020	$	75,000	$	1,627	0.2790	%	One-month L	Apr-18-2023
The Toronto-Dominion Bank	Apr-20-2020	Mar-19-2021	$	75,000	$	1,633	0.2750	%	One-month L	Apr-18-2023
Wells Fargo Bank, N.A.	Apr-20-2020	Mar-19-2021	$	75,000	$	1,626	0.2800	%	One-month L	Apr-18-2023
The Toronto-Dominion Bank	Jul-24-2018	Jul-26-2019	$	50,000	$	171	2.9180	%	One-month L	Jan-12-2024
PNC Bank, N.A.	Jul-24-2018	Jul-26-2019	$	50,000	$	170	2.9190	%	One-month L	Jan-12-2024
Bank of Montreal	Jul-24-2018	Jul-26-2019	$	50,000	$	170	2.9190	%	One-month L	Jan-12-2024
U.S. Bank, N.A.	Jul-24-2018	Jul-26-2019	$	25,000	$	85	2.9190	%	One-month L	Jan-12-2024
Wells Fargo Bank, N.A.	May-02-2019	Jul-15-2020	$	50,000	$	930	2.2460	%	One-month L	Jan-15-2025
U.S. Bank, N.A.	May-02-2019	Jul-15-2020	$	50,000	$	936	2.2459	%	One-month L	Jan-15-2025
Regions Bank	May-02-2019	Jul-15-2020	$	50,000	$	933	2.2459	%	One-month L	Jan-15-2025
Bank of Montreal	Jul-16-2019	Jul-15-2020	$	50,000	$	1,590	1.7165	%	One-month L	Jan-15-2025
U.S. Bank, N.A.	Feb-17-2021	Apr-18-2023	$	150,000	$	7,690	0.9385	%	One-month L	Feb-5-2026
Wells Fargo Bank, N.A.	Feb-17-2021	Apr-18-2023	$	75,000	$	3,818	0.9365	%	One-month L	Feb-5-2026
The Toronto-Dominion Bank	Feb-17-2021	Apr-18-2023	$	75,000	$	3,861	0.9360	%	One-month L	Feb-5-2026
Regions Bank	Oct-26-2021	Apr-01-2022	$	50,000	$	3,446	1.3045	%	One-month L	Mar-15-2027
Bank of Montreal	Oct-26-2021	Apr-01-2022	$	50,000	$	3,472	1.3045	%	One-month L	Mar-15-2027
PNC Bank, N.A.	Oct-26-2021	Apr-01-2022	$	50,000	$	3,462	1.3045	%	One-month L	Mar-15-2027

The swaps outlined in the above table were all designated as cash flow hedges of interest rate risk, and all are valued as Level 2 financial instruments. Level 2 financial instruments are defined as significant other observable inputs. As of June 30, 2022, the fair value of all 23 of our interest rate swaps were in an asset position of approximately $37.9 million, including any adjustment for nonperformance risk related to these agreements.

As of June 30, 2022, we had approximately $1,091.0 million of variable rate debt. As of June 30, 2022, all of our outstanding variable rate debt, with the exception of our unsecured credit facility, was fixed with interest rate swaps through maturity. To the extent interest rates increase, interest costs on our floating rate debt not fixed with interest rate swaps 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.

Off-balance Sheet Arrangements

As of June 30, 2022, we had letters of credit related to development projects and certain other agreements of approximately $3.6 million. As of June 30, 2022, we had no other material off-balance sheet arrangements.

Item 3.  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 June 30, 2022, we had $1,091.0 million of variable rate debt outstanding. As of June 30, 2022, all of our outstanding variable rate debt, with the exception of our unsecured credit facility which had a balance of $116.0 million, was fixed with interest rate swaps through maturity. To the extent we undertake additional 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

45

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 GAAP. In addition, an increase in interest rates could decrease the amounts third parties are willing to pay for our assets, thereby limiting our ability to change our portfolio promptly in response to changes in economic or other conditions. In addition, an increase in interest rates could decrease the amounts third parties are willing to pay for our assets, thereby limiting our ability to change our portfolio promptly in response to changes in economic or other conditions. If interest rates increased by 100 basis points and assuming we had an outstanding balance of $116.0 million on our unsecured credit facility for the six months ended June 30, 2022, our interest expense would have increased by approximately $0.6 million for the six months ended June 30, 2022.

Item 4.  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 June 30, 2022. 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.

Changes in Internal Controls

There was no change to our internal control over financial reporting during the quarter ended June 30, 2022 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

46

PART II. Other Information

Item 1.  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 1A.  Risk Factors

Other than the following, there have been no material changes from the risk factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 16, 2022, as updated by our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 filed with the SEC on May 3, 2022.

Recent macroeconomic trends, including inflation and rising interest rates, may adversely affect our business, financial condition and results of operations.

During the six months ended June 30, 2022, inflation in the United States has accelerated and is currently expected to continue at an elevated level in the near-term. Rising inflation could have an adverse impact on any variable rate debt, including our unsecured credit facility, and general and administrative expenses, as these costs could increase at a rate higher than our rental and other revenue. The Federal Reserve has recently started raising interest rates to combat inflation and restore price stability and it is expected that rates will continue to rise throughout the remainder of 2022. As a result, to the extent our exposure to increases in interest rates is not eliminated through interest rate swaps or other protection agreements, such increases may result in higher debt service costs, which will adversely affect our cash flows.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Recent Sales of Unregistered Equity Securities

All issuances of unregistered securities during the three months ended June 30, 2022, if any, have been previously disclosed in filings with the SEC.

Item 3. Defaults Upon Senior Securities

None.

Item 4.  Mine Safety Disclosures

Not applicable.

Item 5.  Other Information

None.

47

Item 6.  Exhibits

Exhibit  Number	Description of Document
10.1	Note Purchase Agreement, dated April 28, 2022 (incorporated by reference to the Quarterly Report on Form 10-Q filed with the SEC on May 3, 2022)
10.2	Amended and Restated Executive Employment Agreement with William R. Crooker, effective as of July 1, 2022 (incorporated by reference to the Current Report on Form 8-K filed with the SEC on July 6, 2022)
10.3	Amended and Restated Executive Employment Agreement with Benjamin S. Butcher, effective as of July 1, 2022 (incorporated by reference to the Current Report on Form 8-K filed with the SEC on July 6, 2022)
10.4	Amended and Restated Executive Employment Agreement with Michael C. Chase, effective as of July 1, 2022 (incorporated by reference to the Current Report on Form 8-K filed with the SEC on July 6, 2022)
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.INS *	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH *	Inline XBRL Taxonomy Extension Schema Document
101.CAL *	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF *	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB *	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE *	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104 *	Cover Page Interactive Date File (formatted as Inline XBRL and contained in Exhibit 101)

*    Filed herewith.

**    Furnished herewith.

48

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.
Date: July 27, 2022	BY:	/s/ MATTS S. PINARD
		Matts S. Pinard
		Chief Financial Officer, Executive Vice President and Treasurer (Principal Financial Officer)
	BY:	/s/ JACLYN M. PAUL
		Jaclyn M. Paul
		Chief Accounting Officer (Principal Accounting Officer)

49

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, William R. Crooker, certify that:

1.I have reviewed this quarterly report on Form 10-Q 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: July 27, 2022	/s/ WILLIAM R. CROOKER
	William R. Crooker President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Matts S. Pinard, certify that:

1.I have reviewed this quarterly report on Form 10-Q 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: July 27, 2022	/s/ MATTS S. PINARD
	Matts S. Pinard Chief Financial Officer, Executive Vice President and Treasurer

EX-32.1

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 Quarterly Report of STAG Industrial, Inc. on Form 10-Q for the period ended June 30, 2022 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:

(1)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: July 27, 2022	/s/ WILLIAM R. CROOKER
	William R. Crooker President and Chief Executive Officer
	/s/ MATTS S. PINARD
	Matts S. Pinard Chief Financial Officer, Executive Vice President and Treasurer

XML

Cover - shares	6 Months Ended
	Jun. 30, 2022	Jul. 26, 2022
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	1-34907
Entity Registrant Name	STAG Industrial, Inc.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	27-3099608
Entity Address, Address Line One	One Federal Street
Entity Address, Address Line Two	23rd Floor
Entity Address, City or Town	Boston,
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02110
City Area Code	617
Local Phone Number	574-4777
Title of 12(b) Security	Common stock, $0.01 par value per share
Trading Symbol	STAG
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		179,215,896
Entity Central Index Key	0001479094
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Central Index Key	0001479094
Current Fiscal Year End Date	--12-31

XML

Consolidated Balance Sheets - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Rental Property:
Land	$ 636,274,000	$ 617,297,000
Buildings and improvements, net of accumulated depreciation of $682,095 and $611,867, respectively	4,610,814,000	4,435,743,000
Deferred leasing intangibles, net of accumulated amortization of $311,916 and $282,038, respectively	551,061,000	567,658,000
Total rental property, net	5,798,149,000	5,620,698,000
Cash and cash equivalents	12,614,000	18,981,000
Restricted cash	3,233,000	4,215,000
Tenant accounts receivable	100,500,000	93,600,000
Prepaid expenses and other assets	66,903,000	60,953,000
Interest rate swaps	37,899,000	5,220,000
Operating lease right-of-use assets	32,237,000	29,582,000
Assets held for sale, net	57,773,000	0
Total assets	6,109,308,000	5,833,249,000
Liabilities:
Unsecured credit facility	116,000,000	296,000,000
Unsecured term loans, net	971,272,000	970,577,000
Unsecured notes, net	1,295,064,000	896,941,000
Mortgage notes, net	53,635,000	54,744,000
Accounts payable, accrued expenses and other liabilities	84,379,000	76,475,000
Interest rate swaps	0	17,052,000
Tenant prepaid rent and security deposits	37,549,000	37,138,000
Dividends and distributions payable	22,282,000	21,906,000
Deferred leasing intangibles, net of accumulated amortization of $24,066 and $21,136, respectively	36,084,000	35,721,000
Operating lease liabilities	35,894,000	33,108,000
Liabilities held for sale, net	654,000	0
Total liabilities	2,652,813,000	2,439,662,000
Commitments and contingencies (Note 11)
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Preferred stock	0	0
Common stock, par value $0.01 per share, 300,000,000 shares authorized at June 30, 2022 and December 31, 2021, 179,211,738 and 177,769,342 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively	1,792,000	1,777,000
Additional paid-in capital	4,182,165,000	4,130,038,000
Cumulative dividends in excess of earnings	(838,437,000)	(792,332,000)
Accumulated other comprehensive income (loss)	36,895,000	(11,783,000)
Stockholders' Equity Attributable to Parent, Total	3,382,415,000	3,327,700,000
Noncontrolling interest	74,080,000	65,887,000
Total equity	3,456,495,000	3,393,587,000
Total liabilities and equity	$ 6,109,308,000	$ 5,833,249,000

XML

Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Building and Improvements, accumulated depreciation	$ 682,095	$ 611,867
Deferred leasing intangible assets, accumulated amortization	311,916	282,038
Deferred leasing intangible liabilities, accumulated amortization	$ 24,066	$ 21,136
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	20,000,000	20,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares, Outstanding	179,211,738	177,769,342
Common Stock, Shares Authorized	300,000,000	300,000,000
Common Stock, Shares, Issued	179,211,738	177,769,342

XML

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenues [Abstract]
Rental income	$ 161,057	$ 137,805	$ 319,658	$ 271,630
Other income	443	622	1,051	792
Total revenue	161,500	138,427	320,709	272,422
Expenses
Property	28,874	25,356	60,649	52,358
General and administrative	12,234	12,578	24,547	25,368
Depreciation and amortization	69,279	57,332	136,645	115,739
Other expenses	532	511	1,029	1,363
Total expenses	110,919	95,777	222,870	194,828
Other income (expense)
Interest and other income	23	30	57	62
Interest expense	(17,896)	(15,273)	(35,155)	(30,631)
Debt extinguishment and modification expenses	0	0	0	(679)
Gain on the sales of rental property, net	376	5,976	24,331	12,385
Total other income (expense)	(17,497)	(9,267)	(10,767)	(18,863)
Net income	33,084	33,383	87,072	58,731
Less: income attributable to noncontrolling interest after preferred stock dividends	708	733	1,870	1,206
Net income attributable to STAG Industrial, Inc.	32,376	32,650	85,202	57,525
Less: preferred stock dividends	0	0	0	1,289
Less: redemption of preferred stock	0	0	0	2,582
Less: amount allocated to participating securities	59	74	121	147
Net income attributable to common stockholders	$ 32,317	$ 32,576	$ 85,081	$ 53,507
Weighted average common shares outstanding — basic	179,049	159,736	178,442	159,086
Weighted average common shares outstanding — diluted	179,144	161,367	178,586	160,249
Net income per share attributable to common stockholders — basic	$ 0.18	$ 0.20	$ 0.48	$ 0.34
Net income per share attributable to common stockholders — diluted	$ 0.18	$ 0.20	$ 0.48	$ 0.33

XML

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 33,084	$ 33,383	$ 87,072	$ 58,731
Other comprehensive income:
Income on interest rate swaps	12,509	1,432	49,746	13,582
Other comprehensive income	12,509	1,432	49,746	13,582
Comprehensive income	45,593	34,815	136,818	72,313
Income attributable to noncontrolling interest after preferred stock dividends	(708)	(733)	(1,870)	(1,206)
Other comprehensive income attributable to noncontrolling interest	(266)	(31)	(1,068)	(299)
Comprehensive income attributable to STAG Industrial, Inc.	$ 44,619	$ 34,051	$ 133,880	$ 70,808

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Consolidated Statements of Equity - USD ($) $ in Thousands	Total	Preferred Stock	Common Stock	Additional Paid-in Capital	Cumulative Dividends in excess of Earnings	Accumulated Other Comprehensive Income (Loss)	Total Stockholders' Equity	Noncontrolling Interest - Unit holders in Operating Partnership
Balance at Dec. 31, 2020	$ 2,771,052	$ 75,000	$ 1,582	$ 3,421,721	$ (742,071)	$ (40,025)	$ 2,716,207	$ 54,845
Balance (in shares) at Dec. 31, 2020			158,209,823
Increase (Decrease) in Stockholders' Equity
Proceeds from sales of common stock, net	63,359		$ 19	63,340			63,359
Proceeds from sales of common stock (in shares)			1,888,290
Redemption of preferred stock	(75,009)	(75,000)		(2,573)	(2,582)		(75,009)
Dividends, Common Stock					(116,864)
Dividends							(116,864)
Distribution Made to Limited Partner, Cash Distributions Declared								(5,761)
Dividends and Distributions, Net	(122,625)
Non-cash compensation activity, net	7,812			(1,022)			(1,142)	8,954
Non-cash compensation activity (in shares)			98,091
Non-cash compensation activity (in excess of earnings)			$ (1)		(121)
Redemption of common units to common stock			$ (1)	(1,990)			(1,991)	(1,991)
Redemption of common units to common stock (in shares)			119,334
Rebalancing of noncontrolling interest				(1,660)			(1,660)	1,660
Other comprehensive income	13,582					13,283	13,283	299
Net income	58,731				57,525		57,525	1,206
Balance at Jun. 30, 2021	2,716,902	0	$ 1,603	3,486,942	(804,113)	(26,742)	2,657,690	59,212
Balance (in shares) at Jun. 30, 2021			160,315,538
Balance at Dec. 31, 2020	2,771,052	75,000	$ 1,582	3,421,721	(742,071)	(40,025)	2,716,207	$ 54,845
Balance (in shares) at Dec. 31, 2020			158,209,823
Increase (Decrease) in Stockholders' Equity
Redemption of common units to common stock (in shares)								0
Balance at Dec. 31, 2021	3,393,587	0	$ 1,777	4,130,038	(792,332)	(11,783)	3,327,700	$ 65,887
Balance (in shares) at Dec. 31, 2021			177,769,342
Balance at Mar. 31, 2021	2,698,116	0	$ 1,591	3,443,787	(778,727)	(28,143)	2,638,508	59,608
Balance (in shares) at Mar. 31, 2021			159,082,448
Increase (Decrease) in Stockholders' Equity
Proceeds from sales of common stock, net	41,793		$ 12	41,781			41,793
Proceeds from sales of common stock (in shares)			1,208,014
Dividends, Common Stock					(58,036)
Dividends							(58,036)
Distribution Made to Limited Partner, Cash Distributions Declared								(4,325)
Dividends and Distributions, Net	(62,361)
Non-cash compensation activity, net	4,539			2,192			2,192	2,347
Non-cash compensation activity (in shares)			2,901
Non-cash compensation activity (in excess of earnings)			$ 0		0
Redemption of common units to common stock			$ 0	(368)			(368)	(368)
Redemption of common units to common stock (in shares)			22,175
Rebalancing of noncontrolling interest				(1,186)			(1,186)	1,186
Other comprehensive income	1,432					1,401	1,401	31
Net income	33,383				32,650		32,650	733
Balance at Jun. 30, 2021	2,716,902	0	$ 1,603	3,486,942	(804,113)	(26,742)	2,657,690	59,212
Balance (in shares) at Jun. 30, 2021			160,315,538
Balance at Dec. 31, 2021	3,393,587	0	$ 1,777	4,130,038	(792,332)	(11,783)	3,327,700	65,887
Balance (in shares) at Dec. 31, 2021			177,769,342
Increase (Decrease) in Stockholders' Equity
Proceeds from sales of common stock, net	54,883		$ 13	54,870			54,883
Proceeds from sales of common stock (in shares)			1,328,335
Dividends, Common Stock					(130,527)
Dividends							(130,527)
Distribution Made to Limited Partner, Cash Distributions Declared								3,384
Dividends and Distributions, Net	(133,911)
Non-cash compensation activity, net	5,118			(1,208)			(1,987)	7,105
Non-cash compensation activity (in shares)			49,061
Non-cash compensation activity (in excess of earnings)			$ (1)		(780)
Redemption of common units to common stock			$ (1)	(1,216)			(1,217)	$ (1,217)
Redemption of common units to common stock (in shares)			65,000					0
Rebalancing of noncontrolling interest				(2,751)			(2,751)	$ 2,751
Other comprehensive income	49,746					48,678	48,678	1,068
Net income	87,072				85,202		85,202	1,870
Balance at Jun. 30, 2022	3,456,495	0	$ 1,792	4,182,165	(838,437)	36,895	3,382,415	74,080
Balance (in shares) at Jun. 30, 2022			179,211,738
Balance at Mar. 31, 2022	3,474,879	0	$ 1,792	4,179,361	(805,400)	24,652	3,400,405	74,474
Balance (in shares) at Mar. 31, 2022			179,211,305
Increase (Decrease) in Stockholders' Equity
Proceeds from sales of common stock, net	(93)		$ 0	(93)			(93)
Proceeds from sales of common stock (in shares)			0
Dividends, Common Stock					(65,413)
Dividends							(65,413)
Distribution Made to Limited Partner, Cash Distributions Declared								(1,910)
Dividends and Distributions, Net	(67,323)
Non-cash compensation activity, net	3,439			2,071			2,071	1,368
Non-cash compensation activity (in shares)			433
Non-cash compensation activity (in excess of earnings)			$ 0		0
Rebalancing of noncontrolling interest				826			826	(826)
Other comprehensive income	12,509					12,243	12,243	266
Net income	33,084				32,376		32,376	708
Balance at Jun. 30, 2022	$ 3,456,495	$ 0	$ 1,792	$ 4,182,165	$ (838,437)	$ 36,895	$ 3,382,415	$ 74,080
Balance (in shares) at Jun. 30, 2022			179,211,738

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities:
Net income	$ 87,072	$ 58,731
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	136,645	115,739
Non-cash portion of interest expense	1,744	1,276
Amortization of above and below market leases, net	(113)	1,799
Straight-line rent adjustments, net	(8,089)	(8,887)
Gain on the sales of rental property, net	(24,331)	(12,385)
Non-cash compensation expense	6,686	9,154
Change in assets and liabilities:
Tenant accounts receivable	1,307	3,212
Prepaid expenses and other assets	(10,915)	(10,018)
Accounts payable, accrued expenses and other liabilities	771	864
Tenant prepaid rent and security deposits	411	2,888
Total adjustments	104,116	103,642
Net cash provided by operating activities	191,188	162,373
Cash flows from investing activities:
Acquisitions of land and buildings and improvements	(294,387)	(194,164)
Acquisitions of operating lease liabilities	3,541	0
Additions of land and building and improvements	(36,639)	(18,913)
Acquisitions of other assets	2,134	0
Proceeds from sales of rental property, net	38,409	39,619
Acquisition deposits, net	593	(877)
Payment to acquire operating lease right-of-use assets	(3,541)	0
Acquisitions of deferred leasing intangibles	(40,751)	(27,682)
Net cash used in investing activities	(334,909)	(202,017)
Cash flows from financing activities:
Proceeds from unsecured credit facility	871,000	765,000
Repayment of unsecured credit facility	(1,051,000)	(588,000)
Proceeds from unsecured term loans	0	300,000
Repayment of unsecured term loans	0	(300,000)
Proceeds from unsecured notes	400,000	0
Repayment of mortgage notes	(1,173)	(1,093)
Payment of loan fees and costs	2,119	2,847
Proceeds from sales of common stock, net	54,797	63,314
Redemption of preferred stock	0	(75,000)
Dividends and distributions	133,537	122,212
Repurchase and retirement of share-based compensation	(1,596)	(1,342)
Net cash provided by financing activities	136,372	37,820
Decrease in cash and cash equivalents and restricted cash	(7,349)	(1,824)
Cash and cash equivalents and restricted cash—beginning of period	23,196	20,339
Cash and cash equivalents and restricted cash—end of period	15,847	18,515
Supplemental disclosure:
Cash paid for interest, net of capitalized interest	33,105	29,574
Supplemental schedule of non-cash investing and financing activities
Contribution of Property	(1,713)	0
Escrow Deposit Disbursements Related to Property Acquisition	1,713	0
Acquisitions of land and buildings and improvements	0	4,239
Acquisitions of deferred leasing intangibles	0	703
Change in additions of land, building, and improvements included in accounts payable, accrued expenses, and other liabilities	(7,064)	3,469
Additions to building and other capital improvements from non-cash compensation	(40)	0
Assumption of mortgage notes	0	5,103
Fair market value adjustment to mortgage notes acquired	0	(161)
Change in loan fees, costs, and offering costs included in accounts payable, accrued expenses, and other liabilities	27	1,016
Dividends and distributions payable	$ 22,282	$ 19,803

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Organization and Description of Business

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Description of Business

Organization and Description of Business

STAG Industrial, Inc. (the “Company”) is an industrial real estate operating company focused on the acquisition and operation of single-tenant, industrial properties throughout the United States. The Company was formed as a Maryland corporation and has elected to be treated and intends to continue to qualify as a real estate investment trust (“REIT”) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended. 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”). As of June 30, 2022 and December 31, 2021, the Company owned a 97.9% and 98.1%, respectively, common equity interest in the Operating Partnership. The Company, through its wholly owned subsidiary, is the sole general partner of the Operating Partnership. As used herein, the “Company” refers to STAG Industrial, Inc. and its consolidated subsidiaries, including the Operating Partnership, except where context otherwise requires.

As of June 30, 2022, the Company owned 559 industrial buildings in 40 states with approximately 111.5 million rentable square feet.

COVID-19 Pandemic

The Company and the real estate industry generally continue to face risks and uncertainties related to the ongoing public health crisis of the novel coronavirus disease (“COVID-19”) pandemic.

The Company closely monitors the effect of the COVID-19 pandemic on all aspects of its business, including how the pandemic will affect its tenants and business partners. The Company did not incur significant disruptions from the COVID-19 pandemic or enter into any rent deferral agreements during the three and six months ended June 30, 2022 and 2021. The Company will continue to evaluate tenant rent relief requests on an individual basis, considering a number of factors. Not all tenant requests will ultimately result in modified agreements, nor is the Company foregoing its contractual rights under its lease agreements.

The Company remains unable to predict the ultimate impact that the pandemic will have on its financial condition, results of operations and cash flows due to numerous uncertainties. The extent to which the COVID-19 pandemic affects the Company’s operations and those of its tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, among others.

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Interim Financial Information

The accompanying interim financial statements have been presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-Q and Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim financial statements include all adjustments, consisting of normal recurring items, necessary for their fair statement in conformity with GAAP. Interim results are not necessarily indicative of results for a full year. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Basis of Presentation

The Company’s consolidated financial statements include the accounts of the Company, the Operating Partnership, and their consolidated subsidiaries. Interests in the Operating Partnership not owned by the Company are referred to as “Noncontrolling Common Units.” These Noncontrolling Common Units are held by other limited partners in the form of common units (“Other Common Units”) and long term incentive plan units (“LTIP units”) issued pursuant to the STAG Industrial, Inc. 2011 Equity Incentive Plan, as amended and restated (the “2011 Plan”). All significant intercompany balances and transactions have been

eliminated in the consolidation of entities. The financial statements of the Company are presented on a consolidated basis for all periods presented.

Restricted Cash

The following table presents a reconciliation of cash and cash equivalents and restricted cash reported on the accompanying Consolidated Balance Sheets to amounts reported on the accompanying Consolidated Statements of Cash Flows.

Reconciliation of cash and cash equivalents and restricted cash (in thousands)	June 30, 2022		December 31, 2021
Cash and cash equivalents	$	12,614	$	18,981
Restricted cash	3,233		4,215
Total cash and cash equivalents and restricted cash	$	15,847	$	23,196

Taxes

Federal Income Taxes

The Company’s taxable REIT subsidiary recognized net income (loss) of approximately $0, $0.1 million, $(4,000), and $(4,000) for the three and six months ended June 30, 2022 and 2021, respectively.

State and Local Income, Excise, and Franchise Tax

State and local income, excise, and franchise taxes in the amount of approximately $0.4 million, $0.9 million, $0.4 million, and $0.8 million have been recorded in other expenses on the accompanying Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021, respectively.

Uncertain Tax Positions

As of June 30, 2022 and December 31, 2021, there were no liabilities for uncertain tax positions.

Concentrations of Credit Risk

Management believes the current credit risk of the Company’s portfolio is reasonably well diversified and does not contain any unusual concentration of credit risk.

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Rental Property

6 Months Ended

Jun. 30, 2022

Real Estate [Abstract]

Rental Property

Rental Property

The following table summarizes the components of rental property as of June 30, 2022 and December 31, 2021.

Rental Property (in thousands)	June 30, 2022		December 31, 2021
Land	$	636,274	$	617,297
Buildings, net of accumulated depreciation of $455,845 and $406,670, respectively	4,180,194		4,035,210
Tenant improvements, net of accumulated depreciation of $29,256 and $26,065, respectively	43,072		43,999
Building and land improvements, net of accumulated depreciation of $196,994 and $179,132, respectively	328,971		320,041
Construction in progress	58,577		36,493
Deferred leasing intangibles, net of accumulated amortization of $311,916 and $282,038, respectively	551,061		567,658
Total rental property, net	$	5,798,149	$	5,620,698

Acquisitions

The following table summarizes the acquisitions of the Company during the three and six months ended June 30, 2022. The Company accounted for all of its acquisitions as asset acquisitions.

Market(1)	Date Acquired	Square Feet	Number of Buildings	Purchase Price (in thousands)
Kansas City, MO	January 6, 2022	702,000	1	$	60,428
Chicago, IL	January 31, 2022	72,499	1	8,128
Columbus, OH	February 8, 2022	138,213	1	11,492
Cleveland, OH	February 8, 2022	136,800	1	13,001
Nashville, TN	March 10, 2022	109,807	1	12,810
Greenville/Spartanburg, SC	March 10, 2022	289,103	1	28,274
Memphis, TN	March 18, 2022	195,622	1	15,828
Greenville/Spartanburg, SC	March 18, 2022	155,717	1	16,390
Three months ended March 31, 2022		1,799,761	8	$	166,351
Atlanta, GA	April 1, 2022	210,858	1	21,119
Minneapolis/St. Paul, MN	April 4, 2022	160,000	1	13,472
West Michigan, MI	April 14, 2022	211,125	2	12,274
Pittsburgh, PA	April 19, 2022	400,000	1	50,178
Greenville/Spartanburg, SC(2)	April 22, 2022	—	—	5,559
Birmingham, AL	May 5, 2022	67,168	1	7,871
South Bay/San Jose, CA	June 7, 2022	175,325	1	29,630
Washington, DC	June 29, 2022	140,555	1	20,257
Hampton Roads, VA	June 29, 2022	102,512	1	10,561
Three months ended June 30, 2022		1,467,543	9	$	170,921
Six months ended June 30, 2022		3,267,304	17	$	337,272

(1) As defined by CoStar Realty Information Inc (“CoStar”). If the building is located outside of a CoStar defined market, the city and state is reflected.

(2) The Company acquired vacant land parcels.

The following table summarizes the allocation of the total purchase price paid (on the closing dates) for the assets and liabilities acquired by the Company during the six months ended June 30, 2022 in connection with the acquisitions identified in the table above.

	Six months ended June 30, 2022
Acquired Assets and Liabilities	Purchase Price (in thousands)		Weighted Average Amortization Period (years) of Intangibles at Acquisition
Land	$	26,720	N/A
Buildings	252,487		N/A
Tenant improvements	1,779		N/A
Building and land improvements	13,401		N/A
Other assets	2,134		N/A
Operating lease right-of-use assets	3,541		N/A
Deferred leasing intangibles - In-place leases	28,559		8.2
Deferred leasing intangibles - Tenant relationships	15,125		11.3
Deferred leasing intangibles - Above market leases	2,438		11.7
Deferred leasing intangibles - Below market leases	(5,371)		8.0
Operating lease liabilities	(3,541)		N/A
Total purchase price	$	337,272

The following table summarizes the results of operations for the three and six months ended June 30, 2022 for the buildings acquired during the six months ended June 30, 2022, which are included in the Company’s Consolidated Statements of Operations from the date of acquisition.

Results of Operations (in thousands)	Three months ended June 30, 2022		Six months ended June 30, 2022
Total revenue	$	4,054	$	5,305
Net income	$	265	$	151

Dispositions

During the six months ended June 30, 2022, the Company sold two buildings and one land parcel to third parties comprised of approximately 0.3 million rentable square feet with a net book value of approximately $14.1 million. These buildings contributed approximately $0, $0.2 million, $0.4 million and $0.8 million to revenue for the three and six months ended June 30, 2022 and 2021, respectively. These buildings contributed approximately ($27,000), $0.1 million, $0.3 million, and $0.5 million to net income (loss) (exclusive of gain on the sales of rental property, net) for the three and six months ended June 30, 2022 and 2021, respectively. Net proceeds from the sales of rental property were approximately $38.4 million and the Company recognized the full gain on the sales of rental property, net, of approximately $24.3 million for the six months ended June 30, 2022.

Assets Held for Sale

As of June 30, 2022, the related land, building and improvements, net, deferred leasing intangibles assets, net and deferred leasing intangibles liabilities, net, of approximately $5.5 million, $42.6 million, $9.7 million, and $0.7 million, respectively, for three buildings were classified as assets and liabilities held for sale, net on the accompanying Consolidated Balance Sheets. These buildings contributed approximately $1.2 million, $2.5 million, $1.7 million and $3.5 million to revenue for the three and six months ended June 30, 2022 and 2021, respectively. These buildings contributed approximately $0.4 million, $0.7 million, $0.9 million and $1.8 million to net income for the three and six months ended June 30, 2022 and 2021, respectively.

Deferred Leasing Intangibles

The following table summarizes the deferred leasing intangibles on the accompanying Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021.

	June 30, 2022						December 31, 2021
Deferred Leasing Intangibles (in thousands)	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Above market leases	$	88,114	$	(32,834)	$	55,280	$	91,565	$	(32,110)	$	59,455
Other intangible lease assets	774,863		(279,082)		495,781		758,131		(249,928)		508,203
Total deferred leasing intangible assets	$	862,977	$	(311,916)	$	551,061	$	849,696	$	(282,038)	$	567,658
Below market leases	$	60,150	$	(24,066)	$	36,084	$	56,857	$	(21,136)	$	35,721
Total deferred leasing intangible liabilities	$	60,150	$	(24,066)	$	36,084	$	56,857	$	(21,136)	$	35,721

The following table summarizes the amortization expense and the net increase (decrease) to rental income for the amortization of deferred leasing intangibles during the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Deferred Leasing Intangibles Amortization (in thousands)	2022		2021		2022		2021
Net increase (decrease) to rental income related to above and below market lease amortization	$	22	$	(330)	$	101	$	(1,810)
Amortization expense related to other intangible lease assets	$	24,705	$	21,422	$	48,782	$	43,869

The following table summarizes the amortization of deferred leasing intangibles over the next five calendar years (including the remainder of 2022) as of June 30, 2022.

Year	Amortization Expense Related to Other Intangible Lease Assets (in thousands)		Net Increase (Decrease) to Rental Income Related to Above and Below Market Lease Amortization (in thousands)
Remainder of 2022	$	46,432	$	74
2023	$	83,154	$	(58)
2024	$	72,189	$	(695)
2025	$	63,028	$	(529)
2026	$	54,085	$	(1,213)

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Debt

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Debt

Debt

The following table summarizes the Company’s outstanding indebtedness, including borrowings under the Company’s unsecured credit facility, unsecured term loans, unsecured notes, and mortgage notes as of June 30, 2022 and December 31, 2021.

Loan	Principal Outstanding as of June 30, 2022 (in thousands)		Principal Outstanding as of December 31, 2021 (in thousands)		Interest  Rate(1)(2)		Maturity Date	Prepayment Terms(3)
Unsecured credit facility:
Unsecured Credit Facility(4)(5)	$	116,000	$	296,000	L + 0.775%		October 23, 2026	i
Total unsecured credit facility	116,000		296,000
Unsecured term loans:
Unsecured Term Loan D(6)	150,000		150,000		2.85	%	January 4, 2023	i
Unsecured Term Loan E(6)	175,000		175,000		3.77	%	January 15, 2024	i
Unsecured Term Loan F	200,000		200,000		2.96	%	January 12, 2025	i
Unsecured Term Loan G	300,000		300,000		1.13	%	February 5, 2026	i
Unsecured Term Loan A	150,000		150,000		2.15	%	March 15, 2027	i
Total unsecured term loans	975,000		975,000
Total unamortized deferred financing fees and debt issuance costs	(3,728)		(4,423)
Total carrying value unsecured term loans, net	971,272		970,577
Unsecured notes:
Series F Unsecured Notes	100,000		100,000		3.98	%	January 5, 2023	ii
Series A Unsecured Notes	50,000		50,000		4.98	%	October 1, 2024	ii
Series D Unsecured Notes	100,000		100,000		4.32	%	February 20, 2025	ii
Series G Unsecured Notes	75,000		75,000		4.10	%	June 13, 2025	ii
Series B Unsecured Notes	50,000		50,000		4.98	%	July 1, 2026	ii
Series C Unsecured Notes	80,000		80,000		4.42	%	December 30, 2026	ii
Series E Unsecured Notes	20,000		20,000		4.42	%	February 20, 2027	ii
Series H Unsecured Notes	100,000		100,000		4.27	%	June 13, 2028	ii
Series I Unsecured Notes	275,000		275,000		2.80	%	September 29, 2031	ii
Series K Unsecured Notes	400,000		—		4.12	%	June 28, 2032	ii
Series J Unsecured Notes	50,000		50,000		2.95	%	September 28, 2033	ii
Total unsecured notes	1,300,000		900,000
Total unamortized deferred financing fees and debt issuance costs	(4,936)		(3,059)
Total carrying value unsecured notes, net	1,295,064		896,941
Mortgage notes (secured debt):
Wells Fargo Bank, National Association CMBS Loan	45,603		46,610		4.31	%	December 1, 2022	iii
Thrivent Financial for Lutherans	3,363		3,430		4.78	%	December 15, 2023	iv
United of Omaha Life Insurance Company	4,844		4,943		3.71	%	October 1, 2039	ii
Total mortgage notes	53,810		54,983
Net unamortized fair market value discount	(136)		(136)
Total unamortized deferred financing fees and debt issuance costs	(39)		(103)
Total carrying value mortgage notes, net	53,635		54,744
Total / weighted average interest rate(7)	$	2,435,971	$	2,218,262	3.25	%

(1)Interest rate as of June 30, 2022. At June 30, 2022, the one-month LIBOR (“L”) was 1.78671%. The current interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums. The spread over the applicable rate for the Company’s unsecured credit facility and unsecured term loans is based on the Company’s debt rating and leverage ratio, as defined in the respective loan agreements.

(2)The unsecured term loans have a stated interest rate of one-month LIBOR plus a spread of 0.85%, with the exception of Unsecured Term Loan D which has a stated interest rate of one-month LIBOR plus a spread of 1.0%. As of June 30, 2022, one-month LIBOR for the Unsecured Term Loans A, D, E, F, and G was swapped to a fixed rate of 1.30%, 1.85%, 2.92%, 2.11%, and 0.28%, respectively. One-month LIBOR for the Unsecured Term Loan G will be swapped to a fixed rate of 0.94% effective April 18, 2023.

(3)Prepayment terms consist of (i) pre-payable with no penalty; (ii) pre-payable with penalty; (iii) pre-payable without penalty three months prior to the maturity date, subject to defeasance; and (iv) pre-payable without penalty three months prior to the maturity date.

(4)The capacity of the unsecured credit facility is $750.0 million. Deferred financing fees and debt issuance costs, net of accumulated amortization related to the unsecured credit facility of approximately $4.6 million and $5.2 million are included in prepaid expenses and other assets on the accompanying Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021, respectively. The initial maturity date is October 24, 2025, or such later date

which may be extended pursuant to two six-month extension options exercisable by the Company in its discretion upon advance written notice. Exercise of each six-month option is subject to the following conditions: (i) absence of a default immediately before the extension and immediately after giving effect to the extension; (ii) accuracy of representations and warranties as of the extension date (both immediately before and after the extension), as if made on the extension date; and (iii) payment of a fee. Neither extension option is subject to lender consent, assuming proper notice and satisfaction of the conditions.

(5)Subsequent to June 30, 2022, on July 26, 2022, the Company entered into an amended and restated credit agreement for the unsecured credit facility. Refer to Note 12 for additional details.

(6)Subsequent to June 30, 2022, the Unsecured Term Loan D and the Unsecured Term Loan E were repaid in full in connection with the Company's new unsecured term loan agreements entered into on July 26, 2022. Refer to Note 12 for additional details.

(7)The weighted average interest rate was calculated using the fixed interest rate swapped on the notional amount of $975.0 million of debt, and is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums or discounts.

The aggregate undrawn nominal commitment on the unsecured credit facility as of June 30, 2022 was approximately $630.4 million, including issued letters of credit. The Company’s actual borrowing capacity at any given point in time may be less or restricted to a maximum amount based on the Company’s debt covenant compliance. Total accrued interest for the Company’s indebtedness was approximately $9.6 million and $8.6 million as of June 30, 2022 and December 31, 2021, respectively, and is included in accounts payable, accrued expenses and other liabilities on the accompanying Consolidated Balance Sheets.

The following table summarizes the costs included in interest expense related to the Company’s debt arrangements on the accompanying Consolidated Statement of Operations for the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Costs Included in Interest Expense (in thousands)	2022		2021		2022		2021
Amortization of deferred financing fees and debt issuance costs and fair market value premiums/discounts	$	880	$	789	$	1,744	$	1,276
Facility, unused, and other fees	$	345	$	440	$	686	$	826

On April 28, 2022, the Company entered into a note purchase agreement (the “April 2022 NPA”) for the private placement by the Operating Partnership of $400.0 million senior unsecured notes (the “Series K Unsecured Notes”) maturing June 28, 2032, with a fixed annual interest rate of 4.12%. The April 2022 NPA contains a number of financial covenants substantially similar to the financial covenants contained in the Company’s unsecured credit facility and other unsecured notes, plus a financial covenant that requires the Company to maintain a minimum interest coverage ratio of not less than 1.50:1.00. The Operating Partnership issued the Series K Unsecured Notes on June 28, 2022. The Company and certain wholly owned subsidiaries of the Operating Partnership are guarantors of the Series K Unsecured Notes.

Financial Covenant Considerations

The Company was in compliance with all financial and other covenants as of June 30, 2022 and December 31, 2021 related to its unsecured credit facility, unsecured term loans, unsecured notes, and mortgage notes. The real estate net book value of the properties that are collateral for the Company’s debt arrangements was approximately $86.9 million and $88.5 million at June 30, 2022 and December 31, 2021, respectively, and is limited to senior, property-level secured debt financing arrangements.

Fair Value of Debt

The following table summarizes the aggregate principal amount outstanding under the Company’s debt arrangements and the corresponding estimate of fair value as of June 30, 2022 and December 31, 2021.

	June 30, 2022				December 31, 2021
Indebtedness (in thousands)	Principal Outstanding		Fair Value		Principal Outstanding		Fair Value
Unsecured credit facility	$	116,000	$	116,000	$	296,000	$	296,000
Unsecured term loans	975,000		975,112		975,000		975,224
Unsecured notes	1,300,000		1,200,811		900,000		937,183
Mortgage notes	53,810		53,163		54,983		56,323
Total principal amount	2,444,810		$	2,345,086	2,225,983		$	2,264,730
Net unamortized fair market value discount	(136)				(136)
Total unamortized deferred financing fees and debt issuance costs	(8,703)				(7,585)
Total carrying value	$	2,435,971			$	2,218,262

The applicable fair value guidance establishes a three tier fair 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. The fair value of the Company’s debt is based on Level 3 inputs.

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Derivative Financial Instruments

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

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 exposure on existing and future liabilities and not for speculative purposes. The principal objective of such arrangements is to minimize the risks and related costs associated with the Company’s operating and financial structure.

The following table summarizes the Company’s outstanding interest rate swaps as of June 30, 2022. All of the Company’s interest rate swaps are designated as qualifying cash flow hedges.

Interest Rate Derivative Counterparty	Trade Date	Effective Date	Notional Amount (in thousands)		Fair Value (in thousands)		Pay Fixed Interest Rate		Receive Variable Interest Rate	Maturity Date
The Toronto-Dominion Bank	Jul-20-2017	Oct-30-2017	$	25,000	$	108	1.8485	%	One-month L	Jan-04-2023
Royal Bank of Canada	Jul-20-2017	Oct-30-2017	$	25,000	$	107	1.8505	%	One-month L	Jan-04-2023
Wells Fargo Bank, N.A.	Jul-20-2017	Oct-30-2017	$	25,000	$	107	1.8505	%	One-month L	Jan-04-2023
PNC Bank, N.A.	Jul-20-2017	Oct-30-2017	$	25,000	$	108	1.8485	%	One-month L	Jan-04-2023
PNC Bank, N.A.	Jul-20-2017	Oct-30-2017	$	50,000	$	216	1.8475	%	One-month L	Jan-04-2023
The Toronto-Dominion Bank	Apr-20-2020	Sep-29-2020	$	75,000	$	1,633	0.2750	%	One-month L	Apr-18-2023
Wells Fargo Bank, N.A.	Apr-20-2020	Sep-29-2020	$	75,000	$	1,627	0.2790	%	One-month L	Apr-18-2023
The Toronto-Dominion Bank	Apr-20-2020	Mar-19-2021	$	75,000	$	1,633	0.2750	%	One-month L	Apr-18-2023
Wells Fargo Bank, N.A.	Apr-20-2020	Mar-19-2021	$	75,000	$	1,626	0.2800	%	One-month L	Apr-18-2023
The Toronto-Dominion Bank	Jul-24-2018	Jul-26-2019	$	50,000	$	171	2.9180	%	One-month L	Jan-12-2024
PNC Bank, N.A.	Jul-24-2018	Jul-26-2019	$	50,000	$	170	2.9190	%	One-month L	Jan-12-2024
Bank of Montreal	Jul-24-2018	Jul-26-2019	$	50,000	$	170	2.9190	%	One-month L	Jan-12-2024
U.S. Bank, N.A.	Jul-24-2018	Jul-26-2019	$	25,000	$	85	2.9190	%	One-month L	Jan-12-2024
Wells Fargo Bank, N.A.	May-02-2019	Jul-15-2020	$	50,000	$	930	2.2460	%	One-month L	Jan-15-2025
U.S. Bank, N.A.	May-02-2019	Jul-15-2020	$	50,000	$	936	2.2459	%	One-month L	Jan-15-2025
Regions Bank	May-02-2019	Jul-15-2020	$	50,000	$	933	2.2459	%	One-month L	Jan-15-2025
Bank of Montreal	Jul-16-2019	Jul-15-2020	$	50,000	$	1,590	1.7165	%	One-month L	Jan-15-2025
U.S. Bank, N.A.	Feb-17-2021	Apr-18-2023	$	150,000	$	7,690	0.9385	%	One-month L	Feb-5-2026
Wells Fargo Bank, N.A.	Feb-17-2021	Apr-18-2023	$	75,000	$	3,818	0.9365	%	One-month L	Feb-5-2026
The Toronto-Dominion Bank	Feb-17-2021	Apr-18-2023	$	75,000	$	3,861	0.9360	%	One-month L	Feb-5-2026
Regions Bank	Oct-26-2021	Apr-01-2022	$	50,000	$	3,446	1.3045	%	One-month L	Mar-15-2027
Bank of Montreal	Oct-26-2021	Apr-01-2022	$	50,000	$	3,472	1.3045	%	One-month L	Mar-15-2027
PNC Bank, N.A.	Oct-26-2021	Apr-01-2022	$	50,000	$	3,462	1.3045	%	One-month L	Mar-15-2027

The following table summarizes the fair value of the interest rate swaps outstanding as of June 30, 2022 and December 31, 2021.

Balance Sheet Line Item (in thousands)	Notional Amount June 30, 2022		Fair Value June 30, 2022		Notional Amount December 31, 2021		Fair Value December 31, 2021
Interest rate swaps-Asset	$	1,275,000	$	37,899	$	600,000	$	5,220
Interest rate swaps-Liability	$	—	$	—	$	825,000	$	(17,052)

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. 

For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income (loss) and subsequently reclassified to interest expense in the same periods during which the hedged transaction affects earnings.

Amounts reported in accumulated other comprehensive income (loss) related to derivatives designated as qualifying cash flow hedges will be reclassified to interest expense as interest payments are made on the Company’s variable rate debt. The Company estimates that approximately $13.7 million will be reclassified from accumulated other comprehensive income (loss) as a decrease to interest expense over the next 12 months.

The following table summarizes the effect of cash flow hedge accounting and the location of amounts related to Company’s derivatives in the consolidated financial statements for the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Effect of Cash Flow Hedge Accounting (in thousands)	2022		2021		2022		2021
Income (loss) recognized in accumulated other comprehensive income (loss) on interest rate swaps	$	10,628	$	(2,501)	$	44,134	$	5,249
Loss reclassified from accumulated other comprehensive income (loss) into income as interest expense	$	1,881	$	3,933	$	5,612	$	8,333
Total interest expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded	$	17,896	$	15,273	$	35,155	$	30,631

Credit-risk-related Contingent Features

The Company has agreements with each of its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on the indebtedness.

As of June 30, 2022, the Company had not breached the provisions of these agreements and had not posted any collateral related to these agreements.

Fair Value of Interest Rate Swaps

The Company’s 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 Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company or its counterparties. However, as of June 30, 2022 and December 31, 2021, the Company has assessed the significance of the impact of the credit valuation adjustments on the

overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy.

The following table summarizes the Company’s financial instruments that were recorded at fair value on a recurring basis as of June 30, 2022 and December 31, 2021. 

			Fair Value Measurements as of June 30, 2022 Using
Balance Sheet Line Item (in thousands)	Fair Value June 30, 2022		Level 1		Level 2		Level 3
Interest rate swaps-Asset	$	37,899	$	—	$	37,899	$	—
Interest rate swaps-Liability	$	—	$	—	$	—	$	—

			Fair Value Measurements as of December 31, 2021 Using
Balance Sheet Line Item (in thousands)	Fair Value December 31, 2021		Level 1		Level 2		Level 3
Interest rate swaps-Asset	$	5,220	$	—	$	5,220	$	—
Interest rate swaps-Liability	$	(17,052)	$	—	$	(17,052)	$	—

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Equity

6 Months Ended

Jun. 30, 2022

Stockholders' Equity Note [Abstract]

Equity

Equity

Preferred Stock

The Company is authorized to issue up to 20,000,000 shares of preferred stock, par value $0.01 per share. As of June 30, 2022 and December 31, 2021, there were no shares of preferred stock issued or outstanding.

The following table summarizes the dividends declared on the Company’s outstanding shares of preferred stock during the year ended December 31, 2021.

Quarter Ended 2021	Declaration Date	Series C Preferred Stock Per Share		Payment Date
March 31	January 11, 2021	$	0.4296875	March 31, 2021
Total		$	0.4296875

Common Stock

The Company is authorized to issue up to 300,000,000 shares of common stock, par value $0.01 per share.

The following table summarizes the terms of the Company’s at-the market (“ATM”) common stock offering program as of June 30, 2022.

ATM Common Stock Offering Program	Date	Maximum Aggregate Offering Price (in thousands)		Aggregate Available as of June 30, 2022 (in thousands)
2022 $750 million ATM	February 17, 2022	$	750,000	$	750,000

The following tables summarize the activity under the ATM common stock offering program during the six months ended June 30, 2022 and year ended December 31, 2021.

	Six months ended June 30, 2022
ATM Common Stock Offering Program	Shares Sold	Weighted Average Price Per Share		Net Proceeds (in thousands)
2019 $600 million ATM(1)	128,335	$	45.03	$	5,721
Total/weighted average	128,335	$	45.03	$	5,721

(1)This program ended before March 31, 2022.

	Year ended December 31, 2021
ATM Common Stock Offering Program(1)	Shares Sold	Weighted Average Price Per Share		Net Proceeds (in thousands)
2019 $600 million ATM(2)	5,110,002	$	37.53	$	189,974
Total/weighted average	5,110,002	$	37.53	$	189,974

(1)Excludes shares of common stock sold under the ATM common stock offering program on a forward basis or issued upon physical settlement of the related forward sale agreements during the period.

(2)This program ended before March 31, 2022.

In connection with the Company’s underwritten public offering that closed in November 2021, on December 3, 2021, the Company executed a forward sale agreement for the sale of an additional 1,200,000 shares of common stock on a forward basis at a price of $41.87 per share. The Company did not initially receive any proceeds from the sale of shares on a forward basis. On March 29, 2022, the Company physically settled in full the forward sales agreement by issuing 1,200,000 shares of common stock for net proceeds of approximately $49.7 million, or $41.39 per share.

The following tables summarize the dividends declared on the Company’s outstanding shares of common stock during the six months ended June 30, 2022 and the year ended December 31, 2021.

Month Ended 2022	Declaration Date	Record Date	Per Share		Payment Date
June 30	April 14, 2022	June 30, 2022	$	0.121667	July 15, 2022
May 31	April 14, 2022	May 31, 2022	0.121667		June 15, 2022
April 30	April 14, 2022	April 29, 2022	0.121667		May 16, 2022
March 31	January 10, 2022	March 31, 2022	0.121667		April 18, 2022
February 28	January 10, 2022	February 28, 2022	0.121667		March 15, 2022
January 31	January 10, 2022	January 31, 2022	0.121667		February 15, 2022
Total			$	0.730002

Month Ended 2021	Declaration Date	Record Date	Per Share		Payment Date
December 31	October 13, 2021	December 31, 2021	$	0.120833	January 18, 2022
November 30	October 13, 2021	November 30, 2021	0.120833		December 15, 2021
October 31	October 13, 2021	October 29, 2021	0.120833		November 15, 2021
September 30	July 13, 2021	September 30, 2021	0.120833		October 15, 2021
August 31	July 13, 2021	August 31, 2021	0.120833		September 15, 2021
July 31	July 13, 2021	July 30, 2021	0.120833		August 16, 2021
June 30	April 12, 2021	June 30, 2021	0.120833		July 15, 2021
May 31	April 12, 2021	May 28, 2021	0.120833		June 15, 2021
April 30	April 12, 2021	April 30, 2021	0.120833		May 17, 2021
March 31	January 11, 2021	March 31, 2021	0.120833		April 15, 2021
February 28	January 11, 2021	February 26, 2021	0.120833		March 15, 2021
January 31	January 11, 2021	January 29, 2021	0.120833		February 16, 2021
Total			$	1.449996

On July 12, 2022, the Company’s board of directors declared dividends of the Company’s outstanding shares of common stock for the months ending July 31, 2022, August 31, 2022, and September 30, 2022 at a monthly rate of $0.121667 per share.

Restricted Shares of Common Stock

The Company granted restricted shares of common stock under the 2011 Plan on January 10, 2022 to certain employees of the Company, which will vest in equal installments on an annual basis over four years (beginning on January 1, 2023), subject to the recipient’s continued employment. The following table summarizes activity related to the Company’s unvested restricted shares of common stock during the six months ended June 30, 2022 and the year ended December 31, 2021.

Unvested Restricted Shares of Common Stock	Shares		Weighted Average Grant Date Fair Value per Share
Balance at December 31, 2020	184,890		$	27.70
Granted	90,304		$	29.77
Vested	(79,140)	(1)	$	27.01
Forfeited	(10,339)		$	30.32
Balance at December 31, 2021	185,715		$	28.86
Granted	58,580		$	44.19
Vested	(73,556)	(1)	$	28.03
Forfeited	(9,056)		$	35.06
Balance at June 30, 2022	161,683		$	34.44

(1)The Company repurchased and retired 25,836 and 27,706 restricted shares of common stock that vested during the six months ended June 30, 2022 and the year ended December 31, 2021, respectively.

The unrecognized compensation expense associated with the Company’s restricted shares of common stock at June 30, 2022 was approximately $4.2 million and is expected to be recognized over a weighted average period of approximately 2.7 years.

The following table summarizes the fair value at vesting for the restricted shares of common stock that vested during the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Vested Restricted Shares of Common Stock	2022		2021		2022		2021
Vested restricted shares of common stock	—		—		73,556		72,788
Fair value of vested restricted shares of common stock (in thousands)	$	—	$	—	$	3,528	$	2,280

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Noncontrolling Interest

6 Months Ended

Jun. 30, 2022

Noncontrolling Interest [Abstract]

Noncontrolling Interest

Noncontrolling Interest

The following table summarizes the activity for noncontrolling interest in the Company during the six months ended June 30, 2022 and the year ended December 31, 2021.

Noncontrolling Interest	LTIP Units	Other Common Units	Total Noncontrolling Common Units	Noncontrolling Interest
Balance at December 31, 2020	1,692,423	1,592,815	3,285,238	2.0	%
Granted/Issued	405,844	—	405,844	N/A
Forfeited	—	—	—	N/A
Conversions from LTIP units to Other Common Units	(149,143)	149,143	—	N/A
Redemptions from Other Common Units to common stock	—	(171,318)	(171,318)	N/A
Balance at December 31, 2021	1,949,124	1,570,640	3,519,764	1.9	%
Granted/Issued	470,237	—	470,237	N/A
Forfeited	—	—	—	N/A
Conversions from LTIP units to Other Common Units	(65,000)	65,000	—	N/A
Redemptions from Other Common Units to common stock	—	(65,000)	(65,000)	N/A
Balance at June 30, 2022	2,354,361	1,570,640	3,925,001	2.1	%

LTIP Units

The Company granted LTIP units under the 2011 Plan on January 10, 2022 to non-employee, independent directors, which will vest on January 1, 2023, subject to the recipient’s continued service. The Company granted LTIP units under the 2011 Plan on January 10, 2022 to certain executive officers and senior employees of the Company, which will vest in equal installments on a

quarterly basis over four years (beginning on March 31, 2022), subject to the recipient’s continued employment. Refer to Note 8 for a discussion of the LTIP units granted on January 10, 2022 pursuant to the 2019 performance units.

The fair value of the LTIP units as of the grant date was determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation. The fair value of the LTIP units are based on Level 3 inputs and non-recurring fair value measurements. The following table summarizes the assumptions used in valuing the LTIP units granted during the six months ended June 30, 2022 (excluding the LTIP units granted pursuant to the 2019 performance units discussed in Note 8 below).

LTIP Units	Assumptions
Grant date	January 10, 2022
Expected term (years)	10
Expected stock price volatility	34.0		%
Expected dividend yield	4.0		%
Risk-free interest rate	1.204		%
Fair value of LTIP units at issuance (in thousands)	$	4,385
LTIP units at issuance	104,241
Fair value unit price per LTIP unit at issuance	$	42.07

The expected stock price volatility is based on a mix of the historical and implied volatilities of the Company and certain peer group companies. The expected dividend yield is based on the Company’s average historical dividend yield and the dividend yield as of the valuation date for each award. The risk-free interest rate is based on U.S. Treasury note yields matching a three-year time period.

The following table summarizes activity related to the Company’s unvested LTIP units during the six months ended June 30, 2022 and the year ended December 31, 2021.

Unvested LTIP Units	LTIP Units	Weighted Average Grant Date Fair Value per Unit
Balance at December 31, 2020	211,448	$	26.54
Granted	405,844	$	28.13
Vested	(427,184)	$	27.47
Forfeited	—	$	—
Balance at December 31, 2021	190,108	$	27.84
Granted	470,237	$	42.07
Vested	(444,675)	$	39.83
Forfeited	—	$	—
Balance at June 30, 2022	215,670	$	34.15

The unrecognized compensation expense associated with the Company’s LTIP units at June 30, 2022 was approximately $4.2 million and is expected to be recognized over a weighted average period of approximately 2.5 years.

The following table summarizes the fair value at vesting for the LTIP units that vested during the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Vested LTIP units	2022		2021		2022		2021
Vested LTIP units	30,327		45,335		444,675		228,821
Fair value of vested LTIP units (in thousands)	$	951	$	1,686	$	19,544	$	7,369

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Equity Incentive Plan

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Equity Incentive Plan

Equity Incentive PlanOn January 10, 2022, the compensation committee of the board of directors approved and the Company granted performance units under the 2011 Plan to the executive officers and certain key employees of the Company. The terms of the performance units granted on January 10, 2022 are substantially the same as the terms of the performance units granted in January 2021, 2020, and 2019, except that the measuring period commenced on January 1, 2022 and ends on December 31, 2024.

The fair value of the performance units as of the grant date was determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation. The fair value of the performance units is based on Level 3 inputs and non-recurring fair value measurements. The performance unit equity compensation expense is recognized ratably from the grant date into earnings over the vesting period. The following table summarizes the assumptions used in valuing the performance units granted during the six months ended June 30, 2022.

Performance Units	Assumptions
Grant date	January 10, 2022
Expected stock price volatility	34.1		%
Expected dividend yield	4.0		%
Risk-free interest rate	1.1979		%
Fair value of performance units grant (in thousands)	$	6,289

The expected stock price volatility is based on a mix of the historical and implied volatilities of the Company and certain peer group companies. The expected dividend yield is based on the Company’s average historical dividend yield and the dividend yield as of the valuation date for each award. The risk-free interest rate is based on U.S. Treasury note yields matching the three-year time period of the performance period.

On December 31, 2021, the measuring period for the 2019 performance units concluded. The compensation committee of the board of directors determined that the Company’s total stockholder return exceeded the threshold percentage and return hurdle and approved the issuance of an aggregate of 365,996 vested LTIP units and 27,934 vested shares of common stock to the participants (of which 8,257 shares of common stock were repurchased and retired), which were issued on January 10, 2022.

The unrecognized compensation expense associated with the Company’s performance units at June 30, 2022 was approximately $8.7 million and is expected to be recognized over a weighted average period of approximately 2.0 years.

Non-cash Compensation Expense

The following table summarizes the amount recorded in general and administrative expenses in the accompanying Consolidated Statements of Operations for the amortization of restricted shares of common stock, LTIP units, performance units, and the Company’s director compensation for the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Non-Cash Compensation Expense (in thousands)	2022		2021		2022		2021
Restricted shares of common stock	$	565	$	586	$	1,113	$	1,237
LTIP units	1,367		2,346		2,651		4,754
Performance units	1,364		1,484		2,660		2,922
Director compensation(1)	125		123		246		241
Total non-cash compensation expense	$	3,421	$	4,539	$	6,670	$	9,154

(1)All of the Company’s independent directors elected to receive shares of common stock in lieu of cash for their service during the three and six months ended June 30, 2022 and 2021. The number of shares of common stock granted was calculated based on the trailing ten day average common stock price on the third business day preceding the grant date.

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Leases

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Leases

Leases

Lessor Leases

The Company has operating leases in which it is the lessor for its rental property. Certain leases contain variable lease payments based upon changes in the Consumer Price Index (“CPI”). Billings for real estate taxes and other expenses are also considered to be variable lease payments. Certain leases contain options to renew or terminate the lease, and options for the lessee to purchase the rental property, all of which are predominately at the sole discretion of the lessee.

The following table summarizes the components of rental income included in the accompanying Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Rental Income (in thousands)	2022		2021		2022		2021
Fixed lease payments	$	124,593	$	103,778	$	244,833	$	204,957
Variable lease payments	32,714		29,639		66,492		58,883
Straight-line rental income	3,728		4,718		8,232		9,600
Net increase (decrease) to rental income related to above and below market lease amortization	22		(330)		101		(1,810)
Total rental income	$	161,057	$	137,805	$	319,658	$	271,630

The Company evaluates its operating leases to determine if it is probable it will collect substantially all of the lessee’s remaining lease payments under the lease term. For those that are not probable of collection, the Company converts to the cash basis of accounting. If the Company subsequently determines that it is probable it will collect substantially all of the lessee’s remaining lease payments under the lease term, the Company will reinstate the accrued rent balance adjusting for the amount related to the period when the lease was accounted for on a cash basis.

As of June 30, 2022 and December 31, 2021, the Company had accrued rental income of approximately $84.0 million and $75.8 million, respectively, included in tenant accounts receivable on the accompanying Consolidated Balance Sheets.

As of June 30, 2022 and December 31, 2021, the Company had approximately $30.7 million and $32.9 million, respectively, of total lease security deposits available in the form of existing letters of credit, which are not reflected on the accompanying Consolidated Balance Sheets. As of June 30, 2022 and December 31, 2021, the Company had approximately $0.7 million and $0.7 million, respectively, of lease security deposits available in cash, which are included in restricted cash on the accompanying Consolidated Balance Sheets. The Company’s remaining lease security deposits are commingled in cash and cash equivalents. These funds may be used to settle tenant accounts receivables in the event of a default under the related lease. As of June 30, 2022 and December 31, 2021, the Company’s total liability associated with these lease security deposits was approximately $17.1 million and $15.2 million, respectively, which is included in tenant prepaid rent and security deposits on the accompanying Consolidated Balance Sheets.

The Company estimates that billings for real estate taxes, which are the responsibility of certain tenants under the terms of their leases and are not reflected on the Company’s consolidated financial statements, was approximately $5.6 million, $11.0 million $5.3 million and $10.4 million for the three and six months ended June 30, 2022 and 2021, respectively. These amounts would have been the maximum real estate tax expense of the Company, excluding any penalties or interest, had the tenants not met their contractual obligations for these periods.

The following table summarizes the maturity of fixed lease payments under the Company’s leases as of June 30, 2022.

Year	Maturity of Fixed Lease Payments (in thousands)
Remainder of 2022	$	252,326
2023	$	492,202
2024	$	443,585
2025	$	384,636
2026	$	318,421
Thereafter	$	1,057,107

Lessee Leases

The Company has operating leases in which it is the lessee for its ground leases and corporate office leases. These leases have remaining lease terms of approximately 0.9 years to 48.2 years. Certain ground leases contain options to extend the leases for ten years to 20 years, all of which are reasonably certain to be exercised, and are included in the computation of the Company’s right-of-use assets and operating lease liabilities.

The following table summarizes supplemental information related to operating lease right-of-use assets and operating lease liabilities recognized in the Company’s Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021.

Operating Lease Term and Discount Rate	June 30, 2022		December 31, 2021
Weighted average remaining lease term (years)	31.0		29.0
Weighted average discount rate	6.7	%	6.6	%

The following table summarizes the operating lease cost included in the Company’s Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Operating Lease Cost (in thousands)	2022		2021		2022		2021
Operating lease cost included in property expense attributable to ground leases	$	605	$	417	$	1,138	$	834
Operating lease cost included in general and administrative expense attributable to corporate office leases	436		429		873		858
Total operating lease cost	$	1,041	$	846	$	2,011	$	1,692

The following table summarizes supplemental cash flow information related to operating leases in the Company’s Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021.

	Six months ended June 30,
Operating Leases (in thousands)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities (operating cash flows)	$	1,850	$	952

The following table summarizes the maturity of operating lease liabilities under the Company’s ground leases and corporate office leases as of June 30, 2022.

Year	Maturity of Operating Lease Liabilities(1) (in thousands)
Remainder of 2022	$	1,934
2023	3,875
2024	3,914
2025	3,959
2026	2,993
Thereafter	83,985
Total lease payments	100,660
Less: Imputed interest	(64,766)
Present value of operating lease liabilities	$	35,894

(1)Operating lease liabilities do not include estimates of CPI rent changes required by certain ground lease agreements. Therefore, actual payments may differ from those presented.

Leases

Leases

Lessor Leases

The Company has operating leases in which it is the lessor for its rental property. Certain leases contain variable lease payments based upon changes in the Consumer Price Index (“CPI”). Billings for real estate taxes and other expenses are also considered to be variable lease payments. Certain leases contain options to renew or terminate the lease, and options for the lessee to purchase the rental property, all of which are predominately at the sole discretion of the lessee.

The following table summarizes the components of rental income included in the accompanying Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Rental Income (in thousands)	2022		2021		2022		2021
Fixed lease payments	$	124,593	$	103,778	$	244,833	$	204,957
Variable lease payments	32,714		29,639		66,492		58,883
Straight-line rental income	3,728		4,718		8,232		9,600
Net increase (decrease) to rental income related to above and below market lease amortization	22		(330)		101		(1,810)
Total rental income	$	161,057	$	137,805	$	319,658	$	271,630

The Company evaluates its operating leases to determine if it is probable it will collect substantially all of the lessee’s remaining lease payments under the lease term. For those that are not probable of collection, the Company converts to the cash basis of accounting. If the Company subsequently determines that it is probable it will collect substantially all of the lessee’s remaining lease payments under the lease term, the Company will reinstate the accrued rent balance adjusting for the amount related to the period when the lease was accounted for on a cash basis.

As of June 30, 2022 and December 31, 2021, the Company had accrued rental income of approximately $84.0 million and $75.8 million, respectively, included in tenant accounts receivable on the accompanying Consolidated Balance Sheets.

As of June 30, 2022 and December 31, 2021, the Company had approximately $30.7 million and $32.9 million, respectively, of total lease security deposits available in the form of existing letters of credit, which are not reflected on the accompanying Consolidated Balance Sheets. As of June 30, 2022 and December 31, 2021, the Company had approximately $0.7 million and $0.7 million, respectively, of lease security deposits available in cash, which are included in restricted cash on the accompanying Consolidated Balance Sheets. The Company’s remaining lease security deposits are commingled in cash and cash equivalents. These funds may be used to settle tenant accounts receivables in the event of a default under the related lease. As of June 30, 2022 and December 31, 2021, the Company’s total liability associated with these lease security deposits was approximately $17.1 million and $15.2 million, respectively, which is included in tenant prepaid rent and security deposits on the accompanying Consolidated Balance Sheets.

The Company estimates that billings for real estate taxes, which are the responsibility of certain tenants under the terms of their leases and are not reflected on the Company’s consolidated financial statements, was approximately $5.6 million, $11.0 million $5.3 million and $10.4 million for the three and six months ended June 30, 2022 and 2021, respectively. These amounts would have been the maximum real estate tax expense of the Company, excluding any penalties or interest, had the tenants not met their contractual obligations for these periods.

The following table summarizes the maturity of fixed lease payments under the Company’s leases as of June 30, 2022.

Year	Maturity of Fixed Lease Payments (in thousands)
Remainder of 2022	$	252,326
2023	$	492,202
2024	$	443,585
2025	$	384,636
2026	$	318,421
Thereafter	$	1,057,107

Lessee Leases

The Company has operating leases in which it is the lessee for its ground leases and corporate office leases. These leases have remaining lease terms of approximately 0.9 years to 48.2 years. Certain ground leases contain options to extend the leases for ten years to 20 years, all of which are reasonably certain to be exercised, and are included in the computation of the Company’s right-of-use assets and operating lease liabilities.

The following table summarizes supplemental information related to operating lease right-of-use assets and operating lease liabilities recognized in the Company’s Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021.

Operating Lease Term and Discount Rate	June 30, 2022		December 31, 2021
Weighted average remaining lease term (years)	31.0		29.0
Weighted average discount rate	6.7	%	6.6	%

The following table summarizes the operating lease cost included in the Company’s Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Operating Lease Cost (in thousands)	2022		2021		2022		2021
Operating lease cost included in property expense attributable to ground leases	$	605	$	417	$	1,138	$	834
Operating lease cost included in general and administrative expense attributable to corporate office leases	436		429		873		858
Total operating lease cost	$	1,041	$	846	$	2,011	$	1,692

The following table summarizes supplemental cash flow information related to operating leases in the Company’s Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021.

	Six months ended June 30,
Operating Leases (in thousands)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities (operating cash flows)	$	1,850	$	952

The following table summarizes the maturity of operating lease liabilities under the Company’s ground leases and corporate office leases as of June 30, 2022.

Year	Maturity of Operating Lease Liabilities(1) (in thousands)
Remainder of 2022	$	1,934
2023	3,875
2024	3,914
2025	3,959
2026	2,993
Thereafter	83,985
Total lease payments	100,660
Less: Imputed interest	(64,766)
Present value of operating lease liabilities	$	35,894

(1)Operating lease liabilities do not include estimates of CPI rent changes required by certain ground lease agreements. Therefore, actual payments may differ from those presented.

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Earnings Per Share

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per ShareDuring the three and six months ended June 30, 2022 and 2021, there were 162,891, 164,068, 202,171 and 200,501 unvested restricted shares of common stock (on a weighted average basis), respectively, that were considered participating securities for the purposes of computing earnings per share.

The following table reconciles the numerators and denominators in the computation of basic and diluted earnings per share of common stock for the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Earnings Per Share (in thousands, except per share data)	2022		2021		2022		2021
Numerator
Net income attributable to common stockholders	$	32,317	$	32,576	$	85,081	$	53,507
Denominator
Weighted average common shares outstanding — basic	179,049		159,736		178,442		159,086
Effect of dilutive securities(1)
Share-based compensation	95		584		144		467
Shares issuable under forward sales agreements	—		1,047		—		696
Weighted average common shares outstanding — diluted	179,144		161,367		178,586		160,249
Net income per share — basic and diluted
Net income per share attributable to common stockholders — basic	$	0.18	$	0.20	$	0.48	$	0.34
Net income per share attributable to common stockholders — diluted	$	0.18	$	0.20	$	0.48	$	0.33

(1)During the three and six months ended June 30, 2022 and 2021, there were approximately 163, 164, 202 and 201, unvested restricted shares of common stock (on a weighted average basis), respectively, that were not included in the computation of diluted earnings per share because the allocation of income under the two-class method was more dilutive.

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Commitments and Contingencies	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and ContingenciesThe 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.The Company has letters of credit of approximately $3.6 million as of June 30, 2022 related to construction projects and certain other agreements.

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Subsequent Events

6 Months Ended

Jun. 30, 2022

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

The following non-recognized subsequent events were noted.

On July 26, 2022, the Company entered into an amended and restated credit agreement for the unsecured credit facility (the “July 2022 Credit Agreement”), which provided for an increase in the aggregate commitments available for borrowing under the unsecured credit facility from $750.0 million to up to $1.0 billion. The July 2022 Credit Agreement also provided for the replacement of one-month LIBOR for one-month Secured Overnight Financing Rate (“SOFR”), plus a 0.10% adjustment. Other than the increase in the borrowing commitments and the interest rate provisions described above, the material terms of the unsecured credit facility remain unchanged.

On July 26, 2022, the Company entered into separate loan agreements for (i) a new $187.5 million unsecured term loan with Bank of America, N.A. and the other lenders party thereto (“Unsecured Term Loan H”), and (i) a new $187.5 million unsecured term loan with Wells Fargo Bank, National Association, and the other lenders party thereto (“Unsecured Term Loan I”). In connection with the new unsecured term loans, the $150.0 million Unsecured Term Loan D and the $175.0 million Unsecured Term Loan E were repaid in full. Each of the Unsecured Term Loan H and the Unsecured Term Loan I bears a current annual interest rate of one-month SOFR, plus a 0.10% adjustment and a spread of 0.85% based on the Company’s debt rating and leverage ratio (as defined in the loan agreement), and matures on January 25, 2028. On July 27, 2022, the Company entered into seven interest rate swaps with a total notional amount of $375.0 million that fix SOFR at 2.579% on the new unsecured term loans. The new interest rate swap with a notional amount of $50.0 million is effective on July 27, 2022 and matures on January 25, 2028. The remaining interest rate swaps become effective on January 4, 2023 and January 12, 2024 upon the maturity of the interest rate swaps previously designated to the Unsecured Term Loan D and Unsecured Term Loan E, respectively, and mature on January 25, 2028.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Quarterly Financial Information

Interim Financial Information

The accompanying interim financial statements have been presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-Q and Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim financial statements include all adjustments, consisting of normal recurring items, necessary for their fair statement in conformity with GAAP. Interim results are not necessarily indicative of results for a full year. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Basis of Presentation

Basis of Presentation

The Company’s consolidated financial statements include the accounts of the Company, the Operating Partnership, and their consolidated subsidiaries. Interests in the Operating Partnership not owned by the Company are referred to as “Noncontrolling Common Units.” These Noncontrolling Common Units are held by other limited partners in the form of common units (“Other Common Units”) and long term incentive plan units (“LTIP units”) issued pursuant to the STAG Industrial, Inc. 2011 Equity Incentive Plan, as amended and restated (the “2011 Plan”). All significant intercompany balances and transactions have been

eliminated in the consolidation of entities. The financial statements of the Company are presented on a consolidated basis for all periods presented.

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Summary of Significant Accounting Policies - Cash, Cash Equivalents and Restricted Cash (Tables)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Schedule of Cash, Cash Equivalents and Restricted Cash

The following table presents a reconciliation of cash and cash equivalents and restricted cash reported on the accompanying Consolidated Balance Sheets to amounts reported on the accompanying Consolidated Statements of Cash Flows.

Reconciliation of cash and cash equivalents and restricted cash (in thousands)	June 30, 2022		December 31, 2021
Cash and cash equivalents	$	12,614	$	18,981
Restricted cash	3,233		4,215
Total cash and cash equivalents and restricted cash	$	15,847	$	23,196

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Rental Property (Tables)

6 Months Ended

Jun. 30, 2022

Real Estate [Abstract]

Schedule of Real Estate Properties

The following table summarizes the components of rental property as of June 30, 2022 and December 31, 2021.

Rental Property (in thousands)	June 30, 2022		December 31, 2021
Land	$	636,274	$	617,297
Buildings, net of accumulated depreciation of $455,845 and $406,670, respectively	4,180,194		4,035,210
Tenant improvements, net of accumulated depreciation of $29,256 and $26,065, respectively	43,072		43,999
Building and land improvements, net of accumulated depreciation of $196,994 and $179,132, respectively	328,971		320,041
Construction in progress	58,577		36,493
Deferred leasing intangibles, net of accumulated amortization of $311,916 and $282,038, respectively	551,061		567,658
Total rental property, net	$	5,798,149	$	5,620,698

Asset Acquisition

The following table summarizes the acquisitions of the Company during the three and six months ended June 30, 2022. The Company accounted for all of its acquisitions as asset acquisitions.

Market(1)	Date Acquired	Square Feet	Number of Buildings	Purchase Price (in thousands)
Kansas City, MO	January 6, 2022	702,000	1	$	60,428
Chicago, IL	January 31, 2022	72,499	1	8,128
Columbus, OH	February 8, 2022	138,213	1	11,492
Cleveland, OH	February 8, 2022	136,800	1	13,001
Nashville, TN	March 10, 2022	109,807	1	12,810
Greenville/Spartanburg, SC	March 10, 2022	289,103	1	28,274
Memphis, TN	March 18, 2022	195,622	1	15,828
Greenville/Spartanburg, SC	March 18, 2022	155,717	1	16,390
Three months ended March 31, 2022		1,799,761	8	$	166,351
Atlanta, GA	April 1, 2022	210,858	1	21,119
Minneapolis/St. Paul, MN	April 4, 2022	160,000	1	13,472
West Michigan, MI	April 14, 2022	211,125	2	12,274
Pittsburgh, PA	April 19, 2022	400,000	1	50,178
Greenville/Spartanburg, SC(2)	April 22, 2022	—	—	5,559
Birmingham, AL	May 5, 2022	67,168	1	7,871
South Bay/San Jose, CA	June 7, 2022	175,325	1	29,630
Washington, DC	June 29, 2022	140,555	1	20,257
Hampton Roads, VA	June 29, 2022	102,512	1	10,561
Three months ended June 30, 2022		1,467,543	9	$	170,921
Six months ended June 30, 2022		3,267,304	17	$	337,272

(1) As defined by CoStar Realty Information Inc (“CoStar”). If the building is located outside of a CoStar defined market, the city and state is reflected.

(2) The Company acquired vacant land parcels.

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 summarizes the allocation of the total purchase price paid (on the closing dates) for the assets and liabilities acquired by the Company during the six months ended June 30, 2022 in connection with the acquisitions identified in the table above.

	Six months ended June 30, 2022
Acquired Assets and Liabilities	Purchase Price (in thousands)		Weighted Average Amortization Period (years) of Intangibles at Acquisition
Land	$	26,720	N/A
Buildings	252,487		N/A
Tenant improvements	1,779		N/A
Building and land improvements	13,401		N/A
Other assets	2,134		N/A
Operating lease right-of-use assets	3,541		N/A
Deferred leasing intangibles - In-place leases	28,559		8.2
Deferred leasing intangibles - Tenant relationships	15,125		11.3
Deferred leasing intangibles - Above market leases	2,438		11.7
Deferred leasing intangibles - Below market leases	(5,371)		8.0
Operating lease liabilities	(3,541)		N/A
Total purchase price	$	337,272

Schedule of pro forma information for acquired properties

The following table summarizes the results of operations for the three and six months ended June 30, 2022 for the buildings acquired during the six months ended June 30, 2022, which are included in the Company’s Consolidated Statements of Operations from the date of acquisition.

Results of Operations (in thousands)	Three months ended June 30, 2022		Six months ended June 30, 2022
Total revenue	$	4,054	$	5,305
Net income	$	265	$	151

Schedule of Finite-Lived Intangible Assets and Below Market Leases

The following table summarizes the deferred leasing intangibles on the accompanying Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021.

	June 30, 2022						December 31, 2021
Deferred Leasing Intangibles (in thousands)	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Above market leases	$	88,114	$	(32,834)	$	55,280	$	91,565	$	(32,110)	$	59,455
Other intangible lease assets	774,863		(279,082)		495,781		758,131		(249,928)		508,203
Total deferred leasing intangible assets	$	862,977	$	(311,916)	$	551,061	$	849,696	$	(282,038)	$	567,658
Below market leases	$	60,150	$	(24,066)	$	36,084	$	56,857	$	(21,136)	$	35,721
Total deferred leasing intangible liabilities	$	60,150	$	(24,066)	$	36,084	$	56,857	$	(21,136)	$	35,721

The following table summarizes the amortization expense and the net increase (decrease) to rental income for the amortization of deferred leasing intangibles during the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Deferred Leasing Intangibles Amortization (in thousands)	2022		2021		2022		2021
Net increase (decrease) to rental income related to above and below market lease amortization	$	22	$	(330)	$	101	$	(1,810)
Amortization expense related to other intangible lease assets	$	24,705	$	21,422	$	48,782	$	43,869

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The following table summarizes the amortization of deferred leasing intangibles over the next five calendar years (including the remainder of 2022) as of June 30, 2022.

Year	Amortization Expense Related to Other Intangible Lease Assets (in thousands)		Net Increase (Decrease) to Rental Income Related to Above and Below Market Lease Amortization (in thousands)
Remainder of 2022	$	46,432	$	74
2023	$	83,154	$	(58)
2024	$	72,189	$	(695)
2025	$	63,028	$	(529)
2026	$	54,085	$	(1,213)

Below Market Lease, Future Amortization Income

The following table summarizes the amortization of deferred leasing intangibles over the next five calendar years (including the remainder of 2022) as of June 30, 2022.

Year	Amortization Expense Related to Other Intangible Lease Assets (in thousands)		Net Increase (Decrease) to Rental Income Related to Above and Below Market Lease Amortization (in thousands)
Remainder of 2022	$	46,432	$	74
2023	$	83,154	$	(58)
2024	$	72,189	$	(695)
2025	$	63,028	$	(529)
2026	$	54,085	$	(1,213)

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Debt (Tables)

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Summary of the mortgage notes payable, unsecured term loans and credit facility

The following table summarizes the Company’s outstanding indebtedness, including borrowings under the Company’s unsecured credit facility, unsecured term loans, unsecured notes, and mortgage notes as of June 30, 2022 and December 31, 2021.

Loan	Principal Outstanding as of June 30, 2022 (in thousands)		Principal Outstanding as of December 31, 2021 (in thousands)		Interest  Rate(1)(2)		Maturity Date	Prepayment Terms(3)
Unsecured credit facility:
Unsecured Credit Facility(4)(5)	$	116,000	$	296,000	L + 0.775%		October 23, 2026	i
Total unsecured credit facility	116,000		296,000
Unsecured term loans:
Unsecured Term Loan D(6)	150,000		150,000		2.85	%	January 4, 2023	i
Unsecured Term Loan E(6)	175,000		175,000		3.77	%	January 15, 2024	i
Unsecured Term Loan F	200,000		200,000		2.96	%	January 12, 2025	i
Unsecured Term Loan G	300,000		300,000		1.13	%	February 5, 2026	i
Unsecured Term Loan A	150,000		150,000		2.15	%	March 15, 2027	i
Total unsecured term loans	975,000		975,000
Total unamortized deferred financing fees and debt issuance costs	(3,728)		(4,423)
Total carrying value unsecured term loans, net	971,272		970,577
Unsecured notes:
Series F Unsecured Notes	100,000		100,000		3.98	%	January 5, 2023	ii
Series A Unsecured Notes	50,000		50,000		4.98	%	October 1, 2024	ii
Series D Unsecured Notes	100,000		100,000		4.32	%	February 20, 2025	ii
Series G Unsecured Notes	75,000		75,000		4.10	%	June 13, 2025	ii
Series B Unsecured Notes	50,000		50,000		4.98	%	July 1, 2026	ii
Series C Unsecured Notes	80,000		80,000		4.42	%	December 30, 2026	ii
Series E Unsecured Notes	20,000		20,000		4.42	%	February 20, 2027	ii
Series H Unsecured Notes	100,000		100,000		4.27	%	June 13, 2028	ii
Series I Unsecured Notes	275,000		275,000		2.80	%	September 29, 2031	ii
Series K Unsecured Notes	400,000		—		4.12	%	June 28, 2032	ii
Series J Unsecured Notes	50,000		50,000		2.95	%	September 28, 2033	ii
Total unsecured notes	1,300,000		900,000
Total unamortized deferred financing fees and debt issuance costs	(4,936)		(3,059)
Total carrying value unsecured notes, net	1,295,064		896,941
Mortgage notes (secured debt):
Wells Fargo Bank, National Association CMBS Loan	45,603		46,610		4.31	%	December 1, 2022	iii
Thrivent Financial for Lutherans	3,363		3,430		4.78	%	December 15, 2023	iv
United of Omaha Life Insurance Company	4,844		4,943		3.71	%	October 1, 2039	ii
Total mortgage notes	53,810		54,983
Net unamortized fair market value discount	(136)		(136)
Total unamortized deferred financing fees and debt issuance costs	(39)		(103)
Total carrying value mortgage notes, net	53,635		54,744
Total / weighted average interest rate(7)	$	2,435,971	$	2,218,262	3.25	%

(1)Interest rate as of June 30, 2022. At June 30, 2022, the one-month LIBOR (“L”) was 1.78671%. The current interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums. The spread over the applicable rate for the Company’s unsecured credit facility and unsecured term loans is based on the Company’s debt rating and leverage ratio, as defined in the respective loan agreements.

(2)The unsecured term loans have a stated interest rate of one-month LIBOR plus a spread of 0.85%, with the exception of Unsecured Term Loan D which has a stated interest rate of one-month LIBOR plus a spread of 1.0%. As of June 30, 2022, one-month LIBOR for the Unsecured Term Loans A, D, E, F, and G was swapped to a fixed rate of 1.30%, 1.85%, 2.92%, 2.11%, and 0.28%, respectively. One-month LIBOR for the Unsecured Term Loan G will be swapped to a fixed rate of 0.94% effective April 18, 2023.

(3)Prepayment terms consist of (i) pre-payable with no penalty; (ii) pre-payable with penalty; (iii) pre-payable without penalty three months prior to the maturity date, subject to defeasance; and (iv) pre-payable without penalty three months prior to the maturity date.

(4)The capacity of the unsecured credit facility is $750.0 million. Deferred financing fees and debt issuance costs, net of accumulated amortization related to the unsecured credit facility of approximately $4.6 million and $5.2 million are included in prepaid expenses and other assets on the accompanying Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021, respectively. The initial maturity date is October 24, 2025, or such later date

which may be extended pursuant to two six-month extension options exercisable by the Company in its discretion upon advance written notice. Exercise of each six-month option is subject to the following conditions: (i) absence of a default immediately before the extension and immediately after giving effect to the extension; (ii) accuracy of representations and warranties as of the extension date (both immediately before and after the extension), as if made on the extension date; and (iii) payment of a fee. Neither extension option is subject to lender consent, assuming proper notice and satisfaction of the conditions.

(5)Subsequent to June 30, 2022, on July 26, 2022, the Company entered into an amended and restated credit agreement for the unsecured credit facility. Refer to Note 12 for additional details.

(6)Subsequent to June 30, 2022, the Unsecured Term Loan D and the Unsecured Term Loan E were repaid in full in connection with the Company's new unsecured term loan agreements entered into on July 26, 2022. Refer to Note 12 for additional details.

(7)The weighted average interest rate was calculated using the fixed interest rate swapped on the notional amount of $975.0 million of debt, and is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums or discounts.

Interest Income and Interest Expense Disclosure [Table Text Block]

The following table summarizes the costs included in interest expense related to the Company’s debt arrangements on the accompanying Consolidated Statement of Operations for the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Costs Included in Interest Expense (in thousands)	2022		2021		2022		2021
Amortization of deferred financing fees and debt issuance costs and fair market value premiums/discounts	$	880	$	789	$	1,744	$	1,276
Facility, unused, and other fees	$	345	$	440	$	686	$	826

Schedule of aggregate carrying value of the debt and the corresponding estimate of fair value

The following table summarizes the aggregate principal amount outstanding under the Company’s debt arrangements and the corresponding estimate of fair value as of June 30, 2022 and December 31, 2021.

	June 30, 2022				December 31, 2021
Indebtedness (in thousands)	Principal Outstanding		Fair Value		Principal Outstanding		Fair Value
Unsecured credit facility	$	116,000	$	116,000	$	296,000	$	296,000
Unsecured term loans	975,000		975,112		975,000		975,224
Unsecured notes	1,300,000		1,200,811		900,000		937,183
Mortgage notes	53,810		53,163		54,983		56,323
Total principal amount	2,444,810		$	2,345,086	2,225,983		$	2,264,730
Net unamortized fair market value discount	(136)				(136)
Total unamortized deferred financing fees and debt issuance costs	(8,703)				(7,585)
Total carrying value	$	2,435,971			$	2,218,262

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Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments [Table Text Block]

The following table summarizes the Company’s outstanding interest rate swaps as of June 30, 2022. All of the Company’s interest rate swaps are designated as qualifying cash flow hedges.

Interest Rate Derivative Counterparty	Trade Date	Effective Date	Notional Amount (in thousands)		Fair Value (in thousands)		Pay Fixed Interest Rate		Receive Variable Interest Rate	Maturity Date
The Toronto-Dominion Bank	Jul-20-2017	Oct-30-2017	$	25,000	$	108	1.8485	%	One-month L	Jan-04-2023
Royal Bank of Canada	Jul-20-2017	Oct-30-2017	$	25,000	$	107	1.8505	%	One-month L	Jan-04-2023
Wells Fargo Bank, N.A.	Jul-20-2017	Oct-30-2017	$	25,000	$	107	1.8505	%	One-month L	Jan-04-2023
PNC Bank, N.A.	Jul-20-2017	Oct-30-2017	$	25,000	$	108	1.8485	%	One-month L	Jan-04-2023
PNC Bank, N.A.	Jul-20-2017	Oct-30-2017	$	50,000	$	216	1.8475	%	One-month L	Jan-04-2023
The Toronto-Dominion Bank	Apr-20-2020	Sep-29-2020	$	75,000	$	1,633	0.2750	%	One-month L	Apr-18-2023
Wells Fargo Bank, N.A.	Apr-20-2020	Sep-29-2020	$	75,000	$	1,627	0.2790	%	One-month L	Apr-18-2023
The Toronto-Dominion Bank	Apr-20-2020	Mar-19-2021	$	75,000	$	1,633	0.2750	%	One-month L	Apr-18-2023
Wells Fargo Bank, N.A.	Apr-20-2020	Mar-19-2021	$	75,000	$	1,626	0.2800	%	One-month L	Apr-18-2023
The Toronto-Dominion Bank	Jul-24-2018	Jul-26-2019	$	50,000	$	171	2.9180	%	One-month L	Jan-12-2024
PNC Bank, N.A.	Jul-24-2018	Jul-26-2019	$	50,000	$	170	2.9190	%	One-month L	Jan-12-2024
Bank of Montreal	Jul-24-2018	Jul-26-2019	$	50,000	$	170	2.9190	%	One-month L	Jan-12-2024
U.S. Bank, N.A.	Jul-24-2018	Jul-26-2019	$	25,000	$	85	2.9190	%	One-month L	Jan-12-2024
Wells Fargo Bank, N.A.	May-02-2019	Jul-15-2020	$	50,000	$	930	2.2460	%	One-month L	Jan-15-2025
U.S. Bank, N.A.	May-02-2019	Jul-15-2020	$	50,000	$	936	2.2459	%	One-month L	Jan-15-2025
Regions Bank	May-02-2019	Jul-15-2020	$	50,000	$	933	2.2459	%	One-month L	Jan-15-2025
Bank of Montreal	Jul-16-2019	Jul-15-2020	$	50,000	$	1,590	1.7165	%	One-month L	Jan-15-2025
U.S. Bank, N.A.	Feb-17-2021	Apr-18-2023	$	150,000	$	7,690	0.9385	%	One-month L	Feb-5-2026
Wells Fargo Bank, N.A.	Feb-17-2021	Apr-18-2023	$	75,000	$	3,818	0.9365	%	One-month L	Feb-5-2026
The Toronto-Dominion Bank	Feb-17-2021	Apr-18-2023	$	75,000	$	3,861	0.9360	%	One-month L	Feb-5-2026
Regions Bank	Oct-26-2021	Apr-01-2022	$	50,000	$	3,446	1.3045	%	One-month L	Mar-15-2027
Bank of Montreal	Oct-26-2021	Apr-01-2022	$	50,000	$	3,472	1.3045	%	One-month L	Mar-15-2027
PNC Bank, N.A.	Oct-26-2021	Apr-01-2022	$	50,000	$	3,462	1.3045	%	One-month L	Mar-15-2027

Schedule of interest rate swaps

The following table summarizes the fair value of the interest rate swaps outstanding as of June 30, 2022 and December 31, 2021.

Balance Sheet Line Item (in thousands)	Notional Amount June 30, 2022		Fair Value June 30, 2022		Notional Amount December 31, 2021		Fair Value December 31, 2021
Interest rate swaps-Asset	$	1,275,000	$	37,899	$	600,000	$	5,220
Interest rate swaps-Liability	$	—	$	—	$	825,000	$	(17,052)

Schedule of the location in the financial statements of the gain or loss recognized on interest rate swaps

The following table summarizes the effect of cash flow hedge accounting and the location of amounts related to Company’s derivatives in the consolidated financial statements for the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Effect of Cash Flow Hedge Accounting (in thousands)	2022		2021		2022		2021
Income (loss) recognized in accumulated other comprehensive income (loss) on interest rate swaps	$	10,628	$	(2,501)	$	44,134	$	5,249
Loss reclassified from accumulated other comprehensive income (loss) into income as interest expense	$	1,881	$	3,933	$	5,612	$	8,333
Total interest expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded	$	17,896	$	15,273	$	35,155	$	30,631

Schedule of financial instruments accounted for at fair value on a recurring basis

The following table summarizes the Company’s financial instruments that were recorded at fair value on a recurring basis as of June 30, 2022 and December 31, 2021. 

			Fair Value Measurements as of June 30, 2022 Using
Balance Sheet Line Item (in thousands)	Fair Value June 30, 2022		Level 1		Level 2		Level 3
Interest rate swaps-Asset	$	37,899	$	—	$	37,899	$	—
Interest rate swaps-Liability	$	—	$	—	$	—	$	—

			Fair Value Measurements as of December 31, 2021 Using
Balance Sheet Line Item (in thousands)	Fair Value December 31, 2021		Level 1		Level 2		Level 3
Interest rate swaps-Asset	$	5,220	$	—	$	5,220	$	—
Interest rate swaps-Liability	$	(17,052)	$	—	$	(17,052)	$	—

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Equity (Tables)

6 Months Ended

Jun. 30, 2022

Stockholders' Equity Note [Abstract]

Dividends Declared [Table Text Block]

The following table summarizes the dividends declared on the Company’s outstanding shares of preferred stock during the year ended December 31, 2021.

Quarter Ended 2021	Declaration Date	Series C Preferred Stock Per Share		Payment Date
March 31	January 11, 2021	$	0.4296875	March 31, 2021
Total		$	0.4296875

Schedule of stock sale activity

The following table summarizes the terms of the Company’s at-the market (“ATM”) common stock offering program as of June 30, 2022.

ATM Common Stock Offering Program	Date	Maximum Aggregate Offering Price (in thousands)		Aggregate Available as of June 30, 2022 (in thousands)
2022 $750 million ATM	February 17, 2022	$	750,000	$	750,000

The following tables summarize the activity under the ATM common stock offering program during the six months ended June 30, 2022 and year ended December 31, 2021.

	Six months ended June 30, 2022
ATM Common Stock Offering Program	Shares Sold	Weighted Average Price Per Share		Net Proceeds (in thousands)
2019 $600 million ATM(1)	128,335	$	45.03	$	5,721
Total/weighted average	128,335	$	45.03	$	5,721

(1)This program ended before March 31, 2022.

	Year ended December 31, 2021
ATM Common Stock Offering Program(1)	Shares Sold	Weighted Average Price Per Share		Net Proceeds (in thousands)
2019 $600 million ATM(2)	5,110,002	$	37.53	$	189,974
Total/weighted average	5,110,002	$	37.53	$	189,974

(1)Excludes shares of common stock sold under the ATM common stock offering program on a forward basis or issued upon physical settlement of the related forward sale agreements during the period.

(2)This program ended before March 31, 2022.

Common Stock Dividends Declared [Table Text Block]

The following tables summarize the dividends declared on the Company’s outstanding shares of common stock during the six months ended June 30, 2022 and the year ended December 31, 2021.

Month Ended 2022	Declaration Date	Record Date	Per Share		Payment Date
June 30	April 14, 2022	June 30, 2022	$	0.121667	July 15, 2022
May 31	April 14, 2022	May 31, 2022	0.121667		June 15, 2022
April 30	April 14, 2022	April 29, 2022	0.121667		May 16, 2022
March 31	January 10, 2022	March 31, 2022	0.121667		April 18, 2022
February 28	January 10, 2022	February 28, 2022	0.121667		March 15, 2022
January 31	January 10, 2022	January 31, 2022	0.121667		February 15, 2022
Total			$	0.730002

Month Ended 2021	Declaration Date	Record Date	Per Share		Payment Date
December 31	October 13, 2021	December 31, 2021	$	0.120833	January 18, 2022
November 30	October 13, 2021	November 30, 2021	0.120833		December 15, 2021
October 31	October 13, 2021	October 29, 2021	0.120833		November 15, 2021
September 30	July 13, 2021	September 30, 2021	0.120833		October 15, 2021
August 31	July 13, 2021	August 31, 2021	0.120833		September 15, 2021
July 31	July 13, 2021	July 30, 2021	0.120833		August 16, 2021
June 30	April 12, 2021	June 30, 2021	0.120833		July 15, 2021
May 31	April 12, 2021	May 28, 2021	0.120833		June 15, 2021
April 30	April 12, 2021	April 30, 2021	0.120833		May 17, 2021
March 31	January 11, 2021	March 31, 2021	0.120833		April 15, 2021
February 28	January 11, 2021	February 26, 2021	0.120833		March 15, 2021
January 31	January 11, 2021	January 29, 2021	0.120833		February 16, 2021
Total			$	1.449996

On July 12, 2022, the Company’s board of directors declared dividends of the Company’s outstanding shares of common stock for the months ending July 31, 2022, August 31, 2022, and September 30, 2022 at a monthly rate of $0.121667 per share.

Schedule of activity related to unvested restricted stock awards

the six months ended June 30, 2022 and the year ended December 31, 2021.

Unvested Restricted Shares of Common Stock	Shares		Weighted Average Grant Date Fair Value per Share
Balance at December 31, 2020	184,890		$	27.70
Granted	90,304		$	29.77
Vested	(79,140)	(1)	$	27.01
Forfeited	(10,339)		$	30.32
Balance at December 31, 2021	185,715		$	28.86
Granted	58,580		$	44.19
Vested	(73,556)	(1)	$	28.03
Forfeited	(9,056)		$	35.06
Balance at June 30, 2022	161,683		$	34.44

(1)The Company repurchased and retired 25,836 and 27,706 restricted shares of common stock that vested during the six months ended June 30, 2022 and the year ended December 31, 2021, respectively.

Schedule of vested restricted shares of common stock activity

The following table summarizes the fair value at vesting for the restricted shares of common stock that vested during the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Vested Restricted Shares of Common Stock	2022		2021		2022		2021
Vested restricted shares of common stock	—		—		73,556		72,788
Fair value of vested restricted shares of common stock (in thousands)	$	—	$	—	$	3,528	$	2,280

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Noncontrolling Interest (Tables)

6 Months Ended

Jun. 30, 2022

Noncontrolling Interest [Abstract]

Noncontrolling interest activity

The following table summarizes the activity for noncontrolling interest in the Company during the six months ended June 30, 2022 and the year ended December 31, 2021.

Noncontrolling Interest	LTIP Units	Other Common Units	Total Noncontrolling Common Units	Noncontrolling Interest
Balance at December 31, 2020	1,692,423	1,592,815	3,285,238	2.0	%
Granted/Issued	405,844	—	405,844	N/A
Forfeited	—	—	—	N/A
Conversions from LTIP units to Other Common Units	(149,143)	149,143	—	N/A
Redemptions from Other Common Units to common stock	—	(171,318)	(171,318)	N/A
Balance at December 31, 2021	1,949,124	1,570,640	3,519,764	1.9	%
Granted/Issued	470,237	—	470,237	N/A
Forfeited	—	—	—	N/A
Conversions from LTIP units to Other Common Units	(65,000)	65,000	—	N/A
Redemptions from Other Common Units to common stock	—	(65,000)	(65,000)	N/A
Balance at June 30, 2022	2,354,361	1,570,640	3,925,001	2.1	%

Schedule of share-based payment award, LTIP unit awards, valuation assumptions

six months ended June 30, 2022 (excluding the LTIP units granted pursuant to the 2019 performance units discussed in Note 8 below).

LTIP Units	Assumptions
Grant date	January 10, 2022
Expected term (years)	10
Expected stock price volatility	34.0		%
Expected dividend yield	4.0		%
Risk-free interest rate	1.204		%
Fair value of LTIP units at issuance (in thousands)	$	4,385
LTIP units at issuance	104,241
Fair value unit price per LTIP unit at issuance	$	42.07

Schedule of activity related to unvested LTIP unit awards

The following table summarizes activity related to the Company’s unvested LTIP units during the six months ended June 30, 2022 and the year ended December 31, 2021.

Unvested LTIP Units	LTIP Units	Weighted Average Grant Date Fair Value per Unit
Balance at December 31, 2020	211,448	$	26.54
Granted	405,844	$	28.13
Vested	(427,184)	$	27.47
Forfeited	—	$	—
Balance at December 31, 2021	190,108	$	27.84
Granted	470,237	$	42.07
Vested	(444,675)	$	39.83
Forfeited	—	$	—
Balance at June 30, 2022	215,670	$	34.15

Schedule of vested LTIP unit award activity

The following table summarizes the fair value at vesting for the LTIP units that vested during the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Vested LTIP units	2022		2021		2022		2021
Vested LTIP units	30,327		45,335		444,675		228,821
Fair value of vested LTIP units (in thousands)	$	951	$	1,686	$	19,544	$	7,369

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Equity Incentive Plan (Tables)

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of share-based payment award, performance unit awards, valuation assumptions

The following table summarizes the assumptions used in valuing the performance units granted during the six months ended June 30, 2022.

Performance Units	Assumptions
Grant date	January 10, 2022
Expected stock price volatility	34.1		%
Expected dividend yield	4.0		%
Risk-free interest rate	1.1979		%
Fair value of performance units grant (in thousands)	$	6,289

Summary of Equity Compensation Expense

The following table summarizes the amount recorded in general and administrative expenses in the accompanying Consolidated Statements of Operations for the amortization of restricted shares of common stock, LTIP units, performance units, and the Company’s director compensation for the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Non-Cash Compensation Expense (in thousands)	2022		2021		2022		2021
Restricted shares of common stock	$	565	$	586	$	1,113	$	1,237
LTIP units	1,367		2,346		2,651		4,754
Performance units	1,364		1,484		2,660		2,922
Director compensation(1)	125		123		246		241
Total non-cash compensation expense	$	3,421	$	4,539	$	6,670	$	9,154

(1)All of the Company’s independent directors elected to receive shares of common stock in lieu of cash for their service during the three and six months ended June 30, 2022 and 2021. The number of shares of common stock granted was calculated based on the trailing ten day average common stock price on the third business day preceding the grant date.

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Leases (Tables)

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Operating Lease, Lease Income [Table Text Block]

The following table summarizes the components of rental income included in the accompanying Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Rental Income (in thousands)	2022		2021		2022		2021
Fixed lease payments	$	124,593	$	103,778	$	244,833	$	204,957
Variable lease payments	32,714		29,639		66,492		58,883
Straight-line rental income	3,728		4,718		8,232		9,600
Net increase (decrease) to rental income related to above and below market lease amortization	22		(330)		101		(1,810)
Total rental income	$	161,057	$	137,805	$	319,658	$	271,630

Lessor, Operating Lease, Payments to be Received, Maturity

The following table summarizes the maturity of fixed lease payments under the Company’s leases as of June 30, 2022.

Year	Maturity of Fixed Lease Payments (in thousands)
Remainder of 2022	$	252,326
2023	$	492,202
2024	$	443,585
2025	$	384,636
2026	$	318,421
Thereafter	$	1,057,107

Lease, Cost [Table Text Block]

The following table summarizes supplemental information related to operating lease right-of-use assets and operating lease liabilities recognized in the Company’s Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021.

Operating Lease Term and Discount Rate	June 30, 2022		December 31, 2021
Weighted average remaining lease term (years)	31.0		29.0
Weighted average discount rate	6.7	%	6.6	%

The following table summarizes the operating lease cost included in the Company’s Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Operating Lease Cost (in thousands)	2022		2021		2022		2021
Operating lease cost included in property expense attributable to ground leases	$	605	$	417	$	1,138	$	834
Operating lease cost included in general and administrative expense attributable to corporate office leases	436		429		873		858
Total operating lease cost	$	1,041	$	846	$	2,011	$	1,692

The following table summarizes supplemental cash flow information related to operating leases in the Company’s Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021.

	Six months ended June 30,
Operating Leases (in thousands)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities (operating cash flows)	$	1,850	$	952

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

The following table summarizes the maturity of operating lease liabilities under the Company’s ground leases and corporate office leases as of June 30, 2022.

Year	Maturity of Operating Lease Liabilities(1) (in thousands)
Remainder of 2022	$	1,934
2023	3,875
2024	3,914
2025	3,959
2026	2,993
Thereafter	83,985
Total lease payments	100,660
Less: Imputed interest	(64,766)
Present value of operating lease liabilities	$	35,894

(1)Operating lease liabilities do not include estimates of CPI rent changes required by certain ground lease agreements. Therefore, actual payments may differ from those presented.

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Schedule of computation of basic and diluted earnings per common share

The following table reconciles the numerators and denominators in the computation of basic and diluted earnings per share of common stock for the three and six months ended June 30, 2022 and 2021.

	Three months ended June 30,				Six months ended June 30,
Earnings Per Share (in thousands, except per share data)	2022		2021		2022		2021
Numerator
Net income attributable to common stockholders	$	32,317	$	32,576	$	85,081	$	53,507
Denominator
Weighted average common shares outstanding — basic	179,049		159,736		178,442		159,086
Effect of dilutive securities(1)
Share-based compensation	95		584		144		467
Shares issuable under forward sales agreements	—		1,047		—		696
Weighted average common shares outstanding — diluted	179,144		161,367		178,586		160,249
Net income per share — basic and diluted
Net income per share attributable to common stockholders — basic	$	0.18	$	0.20	$	0.48	$	0.34
Net income per share attributable to common stockholders — diluted	$	0.18	$	0.20	$	0.48	$	0.33

(1)During the three and six months ended June 30, 2022 and 2021, there were approximately 163, 164, 202 and 201, unvested restricted shares of common stock (on a weighted average basis), respectively, that were not included in the computation of diluted earnings per share because the allocation of income under the two-class method was more dilutive.

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Organization and Description of Business (Details) ft² in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2022 ft² state building	Dec. 31, 2021
Real Estate Properties [Line Items]
Number of properties | building	559
Number of states in which the entity owned buildings | state	40
Area (in square feet) | ft²	111.5
STAG Industrial, Inc. [Member]
Real Estate Properties [Line Items]
Ownership interest in Operating Partnership (as a percent)	97.90%	98.10%

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Organization and Description of Business - COVID-19 Pandemic (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Rent Deferrals Granted	$ 0	$ 0	$ 0	$ 0

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Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Cash and cash equivalents	$ 12,614	$ 18,981
Restricted cash	3,233	4,215
Cash and cash equivalents and restricted cash—end of period	$ 15,847	$ 23,196	$ 18,515	$ 20,339

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Summary of Significant Accounting Policies - Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Business Acquisition [Line Items]
Net income	$ 33,084,000	$ 33,383,000	$ 87,072,000	$ 58,731,000
State and local income, excise and franchise taxes	400,000	400,000	900,000	800,000
State and local income, excise and franchise taxes	400,000	400,000	900,000	800,000
Liabilities for uncertain tax positions	0		0		$ 0
Real Estate Investment Trust
Business Acquisition [Line Items]
Net income	$ 0	$ (4,000)	$ 100,000	$ (4,000)

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Rental Property - Summary (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Property Subject to or Available for Operating Lease [Line Items]
Land	$ 636,274	$ 617,297
Buildings, net of accumulated depreciation of $455,845 and $406,670, respectively	4,180,194	4,035,210
Tenant improvements, net of accumulated depreciation of $29,256 and $26,065, respectively	43,072	43,999
Building and land improvements, net of accumulated depreciation of $196,994 and $179,132, respectively	328,971	320,041
Construction in progress	58,577	36,493
Deferred leasing intangibles, net of accumulated amortization of $311,916 and $282,038, respectively	551,061	567,658
Building and Improvements, accumulated depreciation	682,095	611,867
Deferred leasing intangible assets, accumulated amortization	311,916	282,038
Total rental property, net	5,798,149	5,620,698
Buildings, net of accumulated depreciation of $455,845 and $406,670, respectively
Property Subject to or Available for Operating Lease [Line Items]
Building and Improvements, accumulated depreciation	455,845	406,670
Tenant improvements, net of accumulated depreciation of $29,256 and $26,065, respectively
Property Subject to or Available for Operating Lease [Line Items]
Building and Improvements, accumulated depreciation	29,256	26,065
Building and land improvements, net of accumulated depreciation of $196,994 and $179,132, respectively
Property Subject to or Available for Operating Lease [Line Items]
Building and Improvements, accumulated depreciation	$ 196,994	$ 179,132

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Rental Property - Acquisitions (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) ft² buildings building	Mar. 31, 2022 USD ($) ft² buildings	Jun. 30, 2022 USD ($) ft² buildings building
Asset Acquisition [Line Items]
Area (in square feet)	111,500,000		111,500,000
Number of properties | building	559		559
Acquisitions Q2 2022
Asset Acquisition [Line Items]
Area (in square feet)	1,467,543		1,467,543
Number of properties | building	9		9
Business Combination, Consideration Transferred | $	$ 170,921
Acquisitions 2022
Asset Acquisition [Line Items]
Area (in square feet)	3,267,304		3,267,304
Number of properties | building	17		17
Business Combination, Consideration Transferred | $			$ 337,272
Acquistions Q1 2022
Asset Acquisition [Line Items]
Area (in square feet)		1,799,761
Number of properties | buildings		8
Asset Acquisition, Consideration Transferred | $		$ 166,351
Kansas City , MO, 1-06-2022
Asset Acquisition [Line Items]
Area (in square feet)		702,000
Number of properties | buildings		1
Asset Acquisition, Consideration Transferred | $		$ 60,428
Elmhurst, IL, 1-31-2022
Asset Acquisition [Line Items]
Area (in square feet)		72,499
Number of properties | buildings		1
Asset Acquisition, Consideration Transferred | $		$ 8,128
Columbus, IL, 2-08-2022
Asset Acquisition [Line Items]
Area (in square feet)		138,213
Number of properties | buildings		1
Asset Acquisition, Consideration Transferred | $		$ 11,492
Macedonia, OH, 2-08-2022
Asset Acquisition [Line Items]
Area (in square feet)		136,800
Number of properties | buildings		1
Asset Acquisition, Consideration Transferred | $		$ 13,001
Murfreesboro, TN, 3-10-2022
Asset Acquisition [Line Items]
Area (in square feet)		109,807
Number of properties | buildings		1
Asset Acquisition, Consideration Transferred | $		$ 12,810
Piedmont, SC, 3-10-2022 (1)
Asset Acquisition [Line Items]
Area (in square feet)		289,103
Number of properties | buildings		1
Asset Acquisition, Consideration Transferred | $		$ 28,274
Memphis, TN, 3-18-2022
Asset Acquisition [Line Items]
Area (in square feet)		195,622
Number of properties | buildings		1
Asset Acquisition, Consideration Transferred | $		$ 15,828
Piedmont, SC, 3-18-2022 (2)
Asset Acquisition [Line Items]
Area (in square feet)		155,717
Number of properties | buildings		1
Asset Acquisition, Consideration Transferred | $		$ 16,390
Atlanta, GA, 4-1-2022
Asset Acquisition [Line Items]
Area (in square feet)	210,858		210,858
Number of properties | buildings	1		1
Asset Acquisition, Consideration Transferred | $	$ 21,119
Minneapolis,/ St Paul, MN 4-4-2022
Asset Acquisition [Line Items]
Area (in square feet)	160,000		160,000
Number of properties | buildings	1		1
Asset Acquisition, Consideration Transferred | $	$ 13,472
West Michigan, MI, 4-14-2022
Asset Acquisition [Line Items]
Area (in square feet)	211,125		211,125
Number of properties | buildings	2		2
Asset Acquisition, Consideration Transferred | $	$ 12,274
Pittsburgh, PA, 4-19-2022
Asset Acquisition [Line Items]
Area (in square feet)	400,000		400,000
Number of properties | buildings	1		1
Asset Acquisition, Consideration Transferred | $	$ 50,178
Greenville/ Spartanburg, SC, 4-22-2022
Asset Acquisition [Line Items]
Area (in square feet)	0		0
Number of properties | buildings	0		0
Asset Acquisition, Consideration Transferred | $	$ 5,559
Birmingham, AL, 5-5-2022
Asset Acquisition [Line Items]
Area (in square feet)	67,168		67,168
Number of properties | buildings	1		1
Asset Acquisition, Consideration Transferred | $	$ 7,871
Hollister, CA, 6-7-2022
Asset Acquisition [Line Items]
Area (in square feet)	175,325		175,325
Number of properties | buildings	1		1
Asset Acquisition, Consideration Transferred | $	$ 29,630
Fredericksburg, VA, 6-29-2022
Asset Acquisition [Line Items]
Area (in square feet)	140,555		140,555
Number of properties | buildings	1		1
Asset Acquisition, Consideration Transferred | $	$ 20,257
Norfolk, VA, 6-29-2022
Asset Acquisition [Line Items]
Area (in square feet)	102,512		102,512
Number of properties | buildings	1		1
Asset Acquisition, Consideration Transferred | $	$ 10,561

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Rental Property - Acquisitions - Allocation of Consideration (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Allocation of the consideration paid for the acquired assets and liabilities
Land	$ 26,720
Buildings	252,487
Tenant improvements	1,779
Operating lease right-of-use assets	32,237		$ 29,582
Operating lease liabilities	(35,894)		$ (33,108)
Building and land improvements	13,401
Other assets	2,134
Total purchase price	337,272
Assumption of mortgage notes	0	$ 5,103
Acquisitions 2022
Allocation of the consideration paid for the acquired assets and liabilities
Operating lease right-of-use assets	3,541
Operating lease liabilities	(3,541)
In-place leases
Allocation of the consideration paid for the acquired assets and liabilities
Deferred leasing intangibles	$ (28,559)
Weighted average amortization period of lease intangibles	8 years 2 months 12 days
Tenant relationships
Allocation of the consideration paid for the acquired assets and liabilities
Deferred leasing intangibles	$ (15,125)
Weighted average amortization period of lease intangibles	11 years 3 months 18 days
Above market leases
Allocation of the consideration paid for the acquired assets and liabilities
Deferred leasing intangibles	$ (2,438)
Weighted average amortization period of lease intangibles	11 years 8 months 12 days
Below market leases
Allocation of the consideration paid for the acquired assets and liabilities
Deferred leasing intangibles	$ 5,371
Weighted average amortization period of lease intangibles	8 years

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Rental Property - Acquisitions - Results of Operations (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022
Acquistions Q1 2022
Business Acquisition [Line Items]
Revenue	$ 4,054
Net income (loss)	$ 265
Acquisitions 2022
Business Acquisition [Line Items]
Revenue		$ 5,305
Net income (loss)		$ (151)

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Rental Property - Disposals (Details) ft² in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) ft² building landParcel	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) ft² building landParcel	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of buildings disposed | building	559		559
Area (in square feet) | ft²	111.5		111.5
Total rental property, net	$ 5,798,149,000		$ 5,798,149,000		$ 5,620,698,000
Land	$ 636,274,000		$ 636,274,000		$ 617,297,000
Disposal Group, Disposed of by Sale, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of buildings disposed | building	2		2
Area (in square feet) | ft²	0.3		0.3
Total rental property, net	$ 14,100,000		$ 14,100,000
Contribution to revenue	0	$ 400,000	200,000	$ 800,000
Disposal Group, Including Discontinued Operation, Operating Income (Loss)	$ (27,000)	$ 300,000	100,000	$ 500,000
Net proceeds from sales of rental property			38,400,000
Gain (Loss) on Sale			$ 24,300,000
Number of land parcels | landParcel	1		1

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Rental Property - Held for Sale (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) building	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) building	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Long Lived Assets Held-for-sale [Line Items]
Assets held for sale, net	$ 57,773		$ 57,773		$ 0
Number of properties | building	559		559
Leases, Deferred Intangible Assets, Net
Long Lived Assets Held-for-sale [Line Items]
Assets held for sale, net	$ 9,700		$ 9,700
Leases, Deferred Intangible Liabilities, Net
Long Lived Assets Held-for-sale [Line Items]
Assets held for sale, net	700		700
Building and Building Improvements [Member]
Long Lived Assets Held-for-sale [Line Items]
Assets held for sale, net	42,600		42,600
Land and Land Improvements
Long Lived Assets Held-for-sale [Line Items]
Assets held for sale, net	$ 5,500		$ 5,500
Disposal Group, Held-for-sale, Not Discontinued Operations [Member]
Long Lived Assets Held-for-sale [Line Items]
Number of properties | building	3		3
Contribution to revenue	$ 1,200	$ 1,700	$ 2,500	$ 3,500
Disposal Group, Including Discontinued Operation, Operating Income (Loss)	$ 400	$ 900	$ 700	$ 1,800

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Rental Property - Deferred Leasing Intangibles (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Deferred leasing intangibles, gross	$ 862,977		$ 862,977		$ 849,696
Deferred leasing intangibles assets, accumulated amortization	(311,916)		(311,916)		(282,038)
Deferred leasing intangibles, net	551,061		551,061		567,658
Below market lease, gross	60,150		60,150		56,857
Below market lease, accumulated amortization	(24,066)		(24,066)		(21,136)
Below market lease, net	36,084		36,084		35,721
Net decrease to rental income related to above and below market lease amortization	22	$ (330)	101	$ (1,810)
Above market leases
Finite-Lived Intangible Assets [Line Items]
Deferred leasing intangibles, gross	88,114		88,114		91,565
Deferred leasing intangibles assets, accumulated amortization	(32,834)		(32,834)		(32,110)
Deferred leasing intangibles, net	55,280		55,280		59,455
Other intangible lease assets
Finite-Lived Intangible Assets [Line Items]
Deferred leasing intangibles, gross	774,863		774,863		758,131
Deferred leasing intangibles assets, accumulated amortization	(279,082)		(279,082)		(249,928)
Deferred leasing intangibles, net	495,781		495,781		$ 508,203
Amortization expense related to other intangible lease assets	24,705	$ 21,422	48,782	$ 43,869
Amortization Expense Related to Other Intangible Lease Assets (in thousands)
Remainder of 2022	46,432		46,432
2023	83,154		83,154
2024	72,189		72,189
2025	63,028		63,028
2026	54,085		54,085
Net decrease to rental income related to above and below market lease amortization
Net Increase (Decrease) to Rental Income Related to Above and Below Market Lease Amortization (in thousands)
Remainder of 2022	74		74
2023	(58)		(58)
2024	(695)		(695)
2025	(529)		(529)
2026	$ (1,213)		$ (1,213)

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Debt - Summary (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($) extention	Apr. 18, 2023	Dec. 31, 2021 USD ($)
Debt Instrument [Line Items]
Long-term debt, gross	$ 2,444,810		$ 2,225,983
Unamortized debt issuance costs	(8,703)		(7,585)
Debt Instrument, Unamortized Discount (Premium), Net	(136)		(136)
Principal outstanding	$ 2,435,971		2,218,262
Weighted average interest rate	3.25%
Interest Rate Swaps
Debt Instrument [Line Items]
Derivative notional amount swapped	$ 975,000
London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Stated interest rate	1.78671%
Term Loan | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	0.85%
$150 Million Unsecured Term Loan D | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
Unsecured Credit Facility
Debt Instrument [Line Items]
Principal outstanding	$ 116,000		296,000
Debt Instrument, Maturity Date	Oct. 23, 2026
Maximum borrowing capacity	$ 750,000
Number Of Extensions | extention	2
Debt Instrument Term Extension Period	6 months
Unsecured Credit Facility | Prepaid Expenses and Other Assets
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ (4,600)		(5,200)
Unsecured Credit Facility | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	0.775%
Unsecured Term Loans
Debt Instrument [Line Items]
Long-term debt, gross	$ 975,000		975,000
Unamortized debt issuance costs	(3,728)		(4,423)
Principal outstanding	971,272		970,577
Unsecured Term Loans | $150 Million Wells Fargo Unsecured Term Loan A
Debt Instrument [Line Items]
Long-term debt, gross	$ 150,000		150,000
Interest rate, effective percentage	2.15%
Debt Instrument, Maturity Date	Mar. 15, 2027
Unsecured Term Loans | $150 Million Unsecured Term Loan D
Debt Instrument [Line Items]
Long-term debt, gross	$ 150,000		150,000
Interest rate, effective percentage	2.85%
Debt Instrument, Maturity Date	Jan. 04, 2023
Fixed Interest Rate (as a percent)	1.85%
Unsecured Term Loans | $175 Million Unsecured Term Loan E
Debt Instrument [Line Items]
Long-term debt, gross	$ 175,000		175,000
Interest rate, effective percentage	3.77%
Debt Instrument, Maturity Date	Jan. 15, 2024
Fixed Interest Rate (as a percent)	2.92%
Unsecured Term Loans | $200 Million Unsecured Term Loan F [Member]
Debt Instrument [Line Items]
Long-term debt, gross	$ 200,000		200,000
Interest rate, effective percentage	2.96%
Debt Instrument, Maturity Date	Jan. 12, 2025
Fixed Interest Rate (as a percent)	2.11%
Unsecured Term Loans | $300 Million Unsecured Term Loan [Member]
Debt Instrument [Line Items]
Long-term debt, gross	$ 300,000		300,000
Interest rate, effective percentage	1.13%
Debt Instrument, Maturity Date	Feb. 05, 2026
Fixed Interest Rate (as a percent)	0.28%
Unsecured Term Loans | $300 Million Unsecured Term Loan [Member] | Scenario, Forecast [Member]
Debt Instrument [Line Items]
Fixed Interest Rate (as a percent)		0.94%
Unsecured Term Loans | $100 Million Series D Unsecured Notes
Debt Instrument [Line Items]
Fixed Interest Rate (as a percent)	1.30%
Unsecured Notes
Debt Instrument [Line Items]
Long-term debt, gross	$ 1,300,000		900,000
Unamortized debt issuance costs	(4,936)		(3,059)
Principal outstanding	1,295,064		896,941
Unsecured Notes | $100 Million Series F Unsecured Notes
Debt Instrument [Line Items]
Long-term debt, gross	$ 100,000		100,000
Stated interest rate	3.98%
Debt Instrument, Maturity Date	Jan. 05, 2023
Unsecured Notes | $50 Million Series A Unsecured Notes
Debt Instrument [Line Items]
Long-term debt, gross	$ 50,000		50,000
Stated interest rate	4.98%
Debt Instrument, Maturity Date	Oct. 01, 2024
Unsecured Notes | $100 Million Series D Unsecured Notes
Debt Instrument [Line Items]
Long-term debt, gross	$ 100,000		100,000
Stated interest rate	4.32%
Debt Instrument, Maturity Date	Feb. 20, 2025
Unsecured Notes | $75 Million Series G Unsecured Notes [Member]
Debt Instrument [Line Items]
Long-term debt, gross	$ 75,000		75,000
Stated interest rate	4.10%
Debt Instrument, Maturity Date	Jun. 13, 2025
Unsecured Notes | $50 Million Series B Unsecured Notes
Debt Instrument [Line Items]
Long-term debt, gross	$ 50,000		50,000
Stated interest rate	4.98%
Debt Instrument, Maturity Date	Jul. 01, 2026
Unsecured Notes | $80 Million Series C Unsecured Notes
Debt Instrument [Line Items]
Long-term debt, gross	$ 80,000		80,000
Stated interest rate	4.42%
Debt Instrument, Maturity Date	Dec. 30, 2026
Unsecured Notes | $20 Million Series E Unsecured Notes
Debt Instrument [Line Items]
Long-term debt, gross	$ 20,000		20,000
Stated interest rate	4.42%
Debt Instrument, Maturity Date	Feb. 20, 2027
Unsecured Notes | $100 Million Series H Unsecured Notes [Member]
Debt Instrument [Line Items]
Long-term debt, gross	$ 100,000		100,000
Stated interest rate	4.27%
Debt Instrument, Maturity Date	Jun. 13, 2028
Unsecured Notes | $275 Million Series I Unsecured Notes
Debt Instrument [Line Items]
Long-term debt, gross	$ 275,000		275,000
Stated interest rate	2.80%
Debt Instrument, Maturity Date	Sep. 29, 2031
Unsecured Notes | $50 Million Series J Unsecured Notes
Debt Instrument [Line Items]
Long-term debt, gross	$ 50,000		50,000
Stated interest rate	2.95%
Debt Instrument, Maturity Date	Sep. 28, 2033
Unsecured Notes | $400 Million Series K Unsecured Notes
Debt Instrument [Line Items]
Long-term debt, gross	$ 400,000		0
Stated interest rate	4.12%
Debt Instrument, Maturity Date	Jun. 28, 2032
Mortgage Loans Payable
Debt Instrument [Line Items]
Long-term debt, gross	$ 53,810		54,983
Unamortized debt issuance costs	(39)		(103)
Debt Instrument, Unamortized Discount (Premium), Net	(136)		(136)
Principal outstanding	53,635		54,744
Mortgage Loans Payable | Wells Fargo Bank, National Association CMBS Loan
Debt Instrument [Line Items]
Long-term debt, gross	$ 45,603		46,610
Stated interest rate	4.31%
Debt Instrument, Maturity Date	Dec. 01, 2022
Penalty free prepayment period	3 months
Mortgage Loans Payable | Thrivent Financial for Lutherans Due December 15, 2023 [Member]
Debt Instrument [Line Items]
Long-term debt, gross	$ 3,363		3,430
Stated interest rate	4.78%
Debt Instrument, Maturity Date	Dec. 15, 2023
Penalty free prepayment period	3 months
Mortgage Loans Payable | United of Omaha Life Insurance Company
Debt Instrument [Line Items]
Long-term debt, gross	$ 4,844		$ 4,943
Stated interest rate	3.71%
Debt Instrument, Maturity Date	Oct. 01, 2039

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Debt - 2022 Activity (Details) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2022 USD ($)	Mar. 31, 2022	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Apr. 28, 2022 USD ($) Rate	Dec. 31, 2021 USD ($)
Debt Instrument [Line Items]
Debt Instrument, Unused Borrowing Capacity, Amount	$ 630,400			$ 630,400
Assumption of mortgage notes				0	$ 5,103
Debt Instrument, Unamortized Discount (Premium), Net	136			$ 136			$ 136
Debt Instrument, Covenant Compliance		The Company was in compliance with all financial and other covenants		The Company was in compliance with all financial and other covenants
Net book value of properties that are collateral for debt arrangements	86,900			$ 86,900			88,500
Long-term debt, gross	$ 2,444,810			$ 2,444,810			2,225,983
London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Stated interest rate	1.78671%			1.78671%
Unsecured Credit Facility | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Basis spread on variable rate				0.775%
Unsecured Notes
Debt Instrument [Line Items]
Long-term debt, gross	$ 1,300,000			$ 1,300,000			900,000
Interest Expense [Member]
Debt Instrument [Line Items]
Amortization of deferred financing fees	880		$ 789	1,744	1,276
Line of Credit Facility, Commitment Fee Amount	345		$ 440	686	$ 826
Accounts Payable and Accrued Liabilities [Member]
Debt Instrument [Line Items]
Interest payable	9,600			9,600			8,600
$400 Million Series K Unsecured Notes | Unsecured Notes
Debt Instrument [Line Items]
Long-term debt, gross	$ 400,000			$ 400,000			$ 0
Debt Instrument, Covenant, Interest Coverage Ratio, Minimum						1.50
Stated interest rate	4.12%			4.12%
$400 Million Unsecured Notes | Unsecured Notes
Debt Instrument [Line Items]
Long-term debt, gross						$ 400,000
Stated interest rate | Rate						4.12%

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Debt - Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Long-term debt, gross	$ 2,444,810	$ 2,225,983
Unamortized debt issuance costs	(8,703)	(7,585)
Principal outstanding	2,435,971	2,218,262
Long-term debt, fair value	2,345,086	2,264,730
Debt Instrument, Unamortized Discount (Premium), Net	(136)	(136)
Unsecured Credit Facility
Debt Instrument [Line Items]
Principal outstanding	116,000	296,000
Long-term debt, fair value	116,000	296,000
Unsecured Term Loans
Debt Instrument [Line Items]
Long-term debt, gross	975,000	975,000
Unamortized debt issuance costs	(3,728)	(4,423)
Principal outstanding	971,272	970,577
Long-term debt, fair value	975,112	975,224
Unsecured Notes
Debt Instrument [Line Items]
Long-term debt, gross	1,300,000	900,000
Unamortized debt issuance costs	(4,936)	(3,059)
Principal outstanding	1,295,064	896,941
Long-term debt, fair value	1,200,811	937,183
Mortgage Loans Payable
Debt Instrument [Line Items]
Long-term debt, gross	53,810	54,983
Unamortized debt issuance costs	(39)	(103)
Principal outstanding	53,635	54,744
Long-term debt, fair value	53,163	56,323
Debt Instrument, Unamortized Discount (Premium), Net	$ (136)	$ (136)

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Derivative Financial Instruments - Risk Management and Unsecured Loan Swaps (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Interest Rate Swaps
Unsecured Term Loan Swaps
Notional amount liabilities	$ 0	$ 825,000
Notional amount assets	1,275,000	$ 600,000
Interest Rate Derivative, The Toronto-Dominion Bank, October 30, 2017
Unsecured Term Loan Swaps
Notional amount liabilities	25,000
Derivative Liability, Fair Value, Gross Liability	$ 108
Fixed Interest Rate (as a percent)	1.8485%
Interest Rate Derivative, Royal Bank of Canada, October 30, 2017
Unsecured Term Loan Swaps
Notional amount liabilities	$ 25,000
Derivative Liability, Fair Value, Gross Liability	$ 107
Fixed Interest Rate (as a percent)	1.8505%
Interest Rate Derivative, Wells Fargo Bank, October 30, 2017
Unsecured Term Loan Swaps
Notional amount liabilities	$ 25,000
Derivative Liability, Fair Value, Gross Liability	$ 107
Fixed Interest Rate (as a percent)	1.8505%
Interest Rate Derivative, PNC Bank, $25m, October 30, 2017
Unsecured Term Loan Swaps
Notional amount liabilities	$ 25,000
Derivative Liability, Fair Value, Gross Liability	$ 108
Fixed Interest Rate (as a percent)	1.8485%
Interest Rate Derivative, PNC Bank, $50m, October 30, 2017
Unsecured Term Loan Swaps
Notional amount liabilities	$ 50,000
Derivative Liability, Fair Value, Gross Liability	$ 216
Fixed Interest Rate (as a percent)	1.8475%
Interest Rate Derivative, TD Bank, $75m, Sep 29, 2020
Unsecured Term Loan Swaps
Notional amount assets	$ 75,000
Derivative Asset, Fair Value, Gross Asset	$ 1,633
Fixed Interest Rate (as a percent)	0.275%
Interest Rate Derivative, Wells Fargo Bank, $75m, Sep 29, 2020
Unsecured Term Loan Swaps
Notional amount assets	$ 75,000
Derivative Asset, Fair Value, Gross Asset	$ 1,627
Fixed Interest Rate (as a percent)	0.279%
Interest Rate Derivative, TD Bank, $75m, March 19, 2021
Unsecured Term Loan Swaps
Notional amount assets	$ 75,000
Derivative Asset, Fair Value, Gross Asset	$ 1,633
Fixed Interest Rate (as a percent)	0.275%
Interest Rate Derivative, Wells Fargo Bank, $75m, March 19, 2021
Unsecured Term Loan Swaps
Notional amount assets	$ 75,000
Derivative Asset, Fair Value, Gross Asset	$ 1,626
Fixed Interest Rate (as a percent)	0.28%
Interest Rate Derivative, The Toronto-Dominion Bank, July 26, 2019 [Member]
Unsecured Term Loan Swaps
Notional amount liabilities	$ 50,000
Derivative Liability, Fair Value, Gross Liability	$ 171
Fixed Interest Rate (as a percent)	2.918%
Interest Rate Derivative, PNC Bank, July 26, 2019 [Member]
Unsecured Term Loan Swaps
Notional amount liabilities	$ 50,000
Derivative Liability, Fair Value, Gross Liability	$ 170
Fixed Interest Rate (as a percent)	2.919%
Interest Rate Derivative, Bank of Montreal, July 26, 2019 [Member]
Unsecured Term Loan Swaps
Notional amount liabilities	$ 50,000
Derivative Liability, Fair Value, Gross Liability	$ 170
Fixed Interest Rate (as a percent)	2.919%
Interest Rate Derivative, US Bank, July 26, 2019 [Member]
Unsecured Term Loan Swaps
Notional amount liabilities	$ 25,000
Derivative Liability, Fair Value, Gross Liability	$ 85
Fixed Interest Rate (as a percent)	2.919%
Interest Rate Derivative, Wells Fargo Bank, July 15, 2020 [Member]
Unsecured Term Loan Swaps
Notional amount assets	$ 50,000
Derivative Asset, Fair Value, Gross Asset	$ 930
Fixed Interest Rate (as a percent)	2.246%
Interest Rate Derivative, US Bank, July 15, 2020 [Member]
Unsecured Term Loan Swaps
Notional amount assets	$ 50,000
Derivative Asset, Fair Value, Gross Asset	$ 936
Fixed Interest Rate (as a percent)	2.2459%
Interest Rate Derivative, Regions Bank, July 15, 2020 [Member]
Unsecured Term Loan Swaps
Notional amount assets	$ 50,000
Derivative Asset, Fair Value, Gross Asset	$ 933
Fixed Interest Rate (as a percent)	2.2459%
Interest Rate Derivative, Bank of Montreal, July 15, 2020
Unsecured Term Loan Swaps
Notional amount assets	$ 50,000
Derivative Asset, Fair Value, Gross Asset	$ 1,590
Fixed Interest Rate (as a percent)	1.7165%
Interest Rate Derivative, US Bank N.A, April 18, 2023
Unsecured Term Loan Swaps
Notional amount assets	$ 150,000
Derivative Asset, Fair Value, Gross Asset	$ 7,690
Fixed Interest Rate (as a percent)	0.9385%
Interest Rate Derivative, Wells Fargo Bank, April 18, 2021
Unsecured Term Loan Swaps
Notional amount assets	$ 75,000
Derivative Asset, Fair Value, Gross Asset	$ 3,818
Fixed Interest Rate (as a percent)	0.9365%
Interest Rate Derivative, The Toronto-Dominion Bank, April 18, 2023
Unsecured Term Loan Swaps
Notional amount assets	$ 75,000
Derivative Asset, Fair Value, Gross Asset	$ 3,861
Fixed Interest Rate (as a percent)	0.936%
Interest Rate Derivative, Regions Bank, April 1, 2022
Unsecured Term Loan Swaps
Notional amount assets	$ 50,000
Derivative Asset, Fair Value, Gross Asset	$ 3,446
Fixed Interest Rate (as a percent)	1.3045%
Interest Rate Derivative, Ban of Montreal, April 1, 2022
Unsecured Term Loan Swaps
Notional amount assets	$ 50,000
Derivative Asset, Fair Value, Gross Asset	$ 3,472
Fixed Interest Rate (as a percent)	1.3045%
Interest Rate Derivative, PNC Bank, April 1, 2022
Unsecured Term Loan Swaps
Notional amount assets	$ 50,000
Derivative Asset, Fair Value, Gross Asset	$ 3,462
Fixed Interest Rate (as a percent)	1.3045%

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Derivative Financial Instruments - FV of Interest Rate Swaps (Details) - Interest Rate Swaps - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair value of the interest rate swaps outstanding
Notional amount assets	$ 1,275,000	$ 600,000
Fair value - assets	37,899	5,220
Notional amount liabilities	0	825,000
Fair Value - liabilities	$ 0	$ (17,052)

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Derivative Financial Instruments - Cash Flow Hedges and Contingent Features (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Cash Flow Hedges of Interest Rate Risk
Total interest expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded	$ 17,896	$ 15,273	$ 35,155	$ 30,631
Interest Rate Swaps
Cash Flow Hedges of Interest Rate Risk
Additional amount reclassified from accumulated other comprehensive income (loss) as a increase (decrease) to interest expense over the next twelve months	(13,700)		(13,700)
Income (loss) recognized in accumulated other comprehensive income (loss) on interest rate swaps	10,628	(2,501)	44,134	5,249
Loss reclassified from accumulated other comprehensive income (loss) into income as interest expense	1,881	3,933	5,612	8,333
Total interest expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded	$ 17,896	$ 15,273	$ 35,155	$ 30,631

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Derivative Financial Instruments - FV on Recurring Basis (Details) - Interest Rate Swaps - Fair value on recurring basis - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Assets (liabilities):
Interest rate swaps-Asset	$ 37,899	$ 5,220
Interest rate swaps-Liability	0	(17,052)
Level 1
Assets (liabilities):
Interest rate swaps-Asset	0	0
Interest rate swaps-Liability	0	0
Level 2
Assets (liabilities):
Interest rate swaps-Asset	37,899	5,220
Interest rate swaps-Liability	0	(17,052)
Level 3
Assets (liabilities):
Interest rate swaps-Asset	0	0
Interest rate swaps-Liability	$ 0	$ 0

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Equity - Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Class of Stock [Line Items]
Less: redemption of preferred stock	$ 0	$ 0		$ 0	$ 2,582
Preferred Stock, Shares Issued	0			0		0
Preferred Stock, Shares Authorized	20,000,000			20,000,000		20,000,000
Preferred Stock, Par or Stated Value Per Share	$ 0.01			$ 0.01		$ 0.01
Series C Preferred Stock
Class of Stock [Line Items]
Preferred Stock, Dividends Per Share, Declared			$ 0.4296875		$ 0.4296875
Dividends Payable, Date Declared			Jan. 11, 2021
Dividends Payable, Date to be Paid			Mar. 31, 2021

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Equity - Common Stock ATM (Details) - USD ($) $ / shares in Units, $ in Thousands			6 Months Ended	12 Months Ended
	Mar. 29, 2022	Dec. 03, 2021	Jun. 30, 2022	Dec. 31, 2021
Class of Stock [Line Items]
Common Stock, Shares, Issued			179,211,738	177,769,342
Common Stock
Class of Stock [Line Items]
Net proceeds from the sale of common stock	$ 49,700
Sale of Stock, Price Per Share	$ 41.39
Common Stock, Shares, Issued	1,200,000
At The Market Program 2019 $600 Million | Common Stock
Class of Stock [Line Items]
Number of shares sold			128,335	5,110,002
Net proceeds from the sale of common stock			$ 5,721	$ 189,974
Over-Allotment Option | Common Stock
Class of Stock [Line Items]
Forward Contract Indexed to Issuer's Equity, Forward Rate Per Share		$ 41.87
Forward Contract Indexed to Issuer's Equity, Indexed Shares		1,200,000
At The Market Program 2022 $750 Million
Class of Stock [Line Items]
Common Stock Value Authorized under Stock Offering Program			750,000
At The Market Program 2022 $750 Million | Common Stock
Class of Stock [Line Items]
Aggregate value of common stock available to be sold under the ATM			$ 750,000
At The Market Program | Common Stock
Class of Stock [Line Items]
Number of shares sold			128,335
Net proceeds from the sale of common stock			$ 5,721
Weighted Average | At The Market Program 2019 $600 Million | Common Stock
Class of Stock [Line Items]
Sale of Stock, Price Per Share			$ 45.03	$ 37.53
Weighted Average | At The Market Program | Common Stock
Class of Stock [Line Items]
Sale of Stock, Price Per Share			$ 45.03

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Equity - Common Stock Dividends (Details) - $ / shares		1 Months Ended																		6 Months Ended	12 Months Ended
	Jul. 11, 2022	Jun. 30, 2022	May 31, 2022	Apr. 30, 2022	Mar. 31, 2022	Feb. 28, 2022	Jan. 31, 2022	Dec. 31, 2021	Nov. 30, 2021	Oct. 31, 2021	Sep. 30, 2021	Aug. 31, 2021	Jul. 31, 2021	Jun. 30, 2021	May 31, 2021	Apr. 30, 2021	Mar. 31, 2021	Feb. 28, 2021	Jan. 31, 2021	Jun. 30, 2022	Dec. 31, 2021
Class of Stock [Line Items]
Common Stock, Dividends, Per Share, Declared		$ 0.121667	$ 0.121667	$ 0.121667	$ 0.121667	$ 0.121667	$ 0.121667	$ 0.120833	$ 0.120833	$ 0.120833	$ 0.120833	$ 0.120833	$ 0.120833	$ 0.120833	$ 0.120833	$ 0.120833	$ 0.120833	$ 0.120833	$ 0.120833	$ 0.730002	$ 1.449996
Common Stock, Shares Authorized		300,000,000						300,000,000												300,000,000	300,000,000
Subsequent Event
Class of Stock [Line Items]
Common Stock, Dividends, Per Share, Declared	$ 0.121667
Common Stock
Class of Stock [Line Items]
Dividends Payable, Date Declared		Apr. 14, 2022	Apr. 14, 2022	Apr. 14, 2022	Jan. 10, 2022	Jan. 10, 2022	Jan. 10, 2022	Oct. 13, 2021	Oct. 13, 2021	Oct. 13, 2021	Jul. 13, 2021	Jul. 13, 2021	Jul. 13, 2021	Apr. 12, 2021	Apr. 12, 2021	Apr. 12, 2021	Jan. 11, 2021	Jan. 11, 2021	Jan. 11, 2021
Dividends Payable, Date to be Paid		Jul. 15, 2022	Jun. 15, 2022	May 16, 2022	Apr. 18, 2022	Mar. 15, 2022	Feb. 15, 2022	Jan. 18, 2022	Dec. 15, 2021	Nov. 15, 2021	Oct. 15, 2021	Sep. 15, 2021	Aug. 16, 2021	Jul. 15, 2021	Jun. 15, 2021	May 17, 2021	Apr. 15, 2021	Mar. 15, 2021	Feb. 16, 2021

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Equity - Restricted Stock (Details) - Restricted stock - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
	Jan. 10, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	4 years
Shares
Unvested at beginning of period (in shares)				185,715	184,890	184,890
Granted (in shares)				58,580		90,304
Vested (in shares)		0	0	(73,556)	(72,788)	(79,140)
Forfeited (in shares)				(9,056)		(10,339)
Unvested at end of period (in shares)		161,683		161,683		185,715
Fair value of restricted stock per share at grant date				$ 44.19		$ 29.77
Stock Repurchased and Retired During Period, Shares				25,836		27,706
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value		$ 34.44		$ 34.44		$ 28.86	$ 27.70
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value				$ 28.03		$ 27.01
Unrecognized compensation costs		$ 4,200		$ 4,200
Unrecognized compensation costs, period for recognition				2 years 8 months 12 days
Vested (in shares)		0	0	(73,556)	(72,788)	(79,140)
Fair value of shares vested		$ 0	$ 0	$ 3,528	$ 2,280
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value				$ 35.06		$ 30.32

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Noncontrolling Interest - Summary (Details) - shares		6 Months Ended	12 Months Ended
	Jan. 10, 2022	Jun. 30, 2022	Dec. 31, 2021	Dec. 31, 2020
Limited Partner
Noncontrolling interest
Noncontrolling interest ownership percentage		2.10%	1.90%	2.00%
LTIP Units | Share-based Compensation Award, Tranche One [Member]
Noncontrolling interest
Vesting period (in years)	4 years
LTIP Units | Independent Director | Share-based Compensation Award, Tranche One [Member]
Noncontrolling interest
Vesting period (in years)	1 year
Noncontrolling Interest - Unit holders in Operating Partnership
Noncontrolling interest
Units outstanding, balance at beginning of period (in units)		3,519,764	3,285,238
Granted/Issued		470,237	405,844
Forfeited		0	0
Conversions from LTIP units to Other Common Units		0	0
Redemptions from Other Common Units to common stock		65,000	171,318
Units outstanding, balance at end of period (in units)		3,925,001	3,519,764
LTIP Units | Noncontrolling Interest - Unit holders in Operating Partnership
Noncontrolling interest
Units outstanding, balance at beginning of period (in units)		1,949,124	1,692,423
Granted/Issued		470,237	405,844
Forfeited		0	0
Conversions from LTIP units to Other Common Units		65,000	149,143
Redemptions from Other Common Units to common stock		0	0
Units outstanding, balance at end of period (in units)		2,354,361	1,949,124
Other Common Units | Noncontrolling Interest - Unit holders in Operating Partnership
Noncontrolling interest
Units outstanding, balance at beginning of period (in units)		1,570,640	1,592,815
Granted/Issued		0	0
Forfeited		0	0
Conversions from LTIP units to Other Common Units		65,000	149,143
Redemptions from Other Common Units to common stock		65,000	171,318
Units outstanding, balance at end of period (in units)		1,570,640	1,570,640

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Noncontrolling Interest - LTIP FV Assumptions (Details) - LTIP Units - USD ($)		6 Months Ended	12 Months Ended
	Jan. 10, 2022	Jun. 30, 2022	Dec. 31, 2021
Assumptions
Expected term (years)	10 years
Expected stock price volatility	34.00%
Expected dividend yield	4.00%
Risk-free interest rate	1.204%
Fair value of LTIP units at issuance (in thousands)	$ 4,385,000
Granted (in shares)	104,241	470,237	405,844
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 42.07	$ 42.07	$ 28.13
Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	4 years
Independent Director | Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	1 year

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Noncontrolling Interest - LTIP Units (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
	Jan. 10, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
LTIP Units
Units
Unvested at beginning of period (in shares)				190,108	211,448	211,448
Granted	104,241			470,237		405,844
Vested (in units)		(30,327)	(45,335)	(444,675)	(228,821)	(427,184)
Forfeited (in units)				0		0
Unvested at end of period (in shares)		215,670		215,670		190,108
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value		$ 34.15		$ 34.15		$ 27.84	$ 26.54
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 42.07			42.07		28.13
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value				$ 39.83		$ 27.47
Unrecognized compensation costs		$ 4,200		$ 4,200
Unrecognized compensation costs, period for recognition				2 years 6 months
Vested (in units)		30,327	45,335	444,675	228,821	427,184
Fair value of units vested		$ 951	$ 1,686	$ 19,544	$ 7,369
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value				$ 0		$ 0
Restricted stock
Units
Unvested at beginning of period (in shares)				185,715	184,890	184,890
Granted				58,580		90,304
Vested (in units)		0	0	(73,556)	(72,788)	(79,140)
Forfeited (in units)				(9,056)		(10,339)
Unvested at end of period (in shares)		161,683		161,683		185,715
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value		$ 34.44		$ 34.44		$ 28.86	$ 27.70
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value				44.19		29.77
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value				$ 28.03		$ 27.01
Unrecognized compensation costs		$ 4,200		$ 4,200
Unrecognized compensation costs, period for recognition				2 years 8 months 12 days
Vested (in units)		0	0	73,556	72,788	79,140
Fair value of units vested		$ 0	$ 0	$ 3,528	$ 2,280
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value				$ 35.06		$ 30.32

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Equity Incentive Plan - Performance Plan Assumptions (Details) - Performance shares $ in Thousands	Jan. 10, 2022 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected stock price volatility	34.10%
Expected dividend yield	4.00%
Risk-free interest rate	1.1979%
Fair value of performance units grant (in thousands)	$ 6,289

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Equity Incentive Plan - 2022 Activity (Details) - USD ($) $ in Millions		6 Months Ended	12 Months Ended
	Jan. 10, 2022	Jun. 30, 2022	Dec. 31, 2021
LTIP Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	104,241	470,237	405,844
Unrecognized compensation costs		$ 4.2
Unrecognized compensation costs, period for recognition		2 years 6 months
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	4 years
Stock Repurchased and Retired During Period, Shares		25,836	27,706
Granted		58,580	90,304
Unrecognized compensation costs		$ 4.2
Unrecognized compensation costs, period for recognition		2 years 8 months 12 days
Performance shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs		$ 8.7
Unrecognized compensation costs, period for recognition		2 years
Performance Units Granted in 2019 | LTIP Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of vested LTIP units and shares	365,996
Performance Units Granted in 2019 | Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Repurchased and Retired During Period, Shares	8,257
Issuance of vested LTIP units and shares	27,934

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Equity Incentive Plan - Equity Non-cash Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
General and Administrative Expenses
Equity Incentive Plan
Share-based compensation	$ 3,421	$ 4,539	$ 6,670	$ 9,154
Restricted stock | General and Administrative Expenses
Equity Incentive Plan
Share-based compensation	565	586	1,113	1,237
LTIP Units | General and Administrative Expenses
Equity Incentive Plan
Share-based compensation	1,367	2,346	2,651	4,754
Performance shares | General and Administrative Expenses
Equity Incentive Plan
Share-based compensation	1,364	1,484	2,660	2,922
Independent Director | General and Administrative Expenses
Equity Incentive Plan
Share-based compensation	$ 125	$ 123	$ 246	$ 241
Common Stock | Independent Director
Equity Incentive Plan
Number of days of average trailing stock price used to calculate number of shares of common stock granted	10 days	10 days	10 days	10 days

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Leases - Rental Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Leases [Abstract]
Fixed lease payments	$ 124,593	$ 103,778	$ 244,833	$ 204,957
Variable lease payments	32,714	29,639	66,492	58,883
Straight-line rental income	3,728	4,718	8,232	9,600
Net decrease to rental income related to above and below market lease amortization	22	(330)	101	(1,810)
Rental income	$ 161,057	$ 137,805	$ 319,658	$ 271,630

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Leases - Tenant Accounts Receivable (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Lease Security Deposits Available in Letters of Credit	$ 30.7		$ 30.7		$ 32.9
Lease security deposits in restricted cash	0.7		0.7		0.7
Lease security deposits included in tenant prepaid rent and security deposits on the Balance Sheet	17.1		17.1		15.2
Real Estate Taxes, Tenant Responsibility	5.6	$ 5.3	11.0	$ 10.4
Accrued Income Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Deferred Rent Receivables, Net	$ 84.0		$ 84.0		$ 75.8

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Leases - Maturity of Fixed Lease Payments (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Leases [Abstract]
2022	$ 252,326
2023	492,202
2023	443,585
2024	384,636
2025	318,421
Thereafter	$ 1,057,107

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Leases - Lessee Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Lessee, Lease, Description [Line Items]
Operating Lease, Weighted Average Remaining Lease Term	31 years		31 years		29 years
Operating Lease, Weighted Average Discount Rate, Percent	6.70%		6.70%		6.60%
Lease, Cost	$ 1,041	$ 846	$ 2,011	$ 1,692
Operating Lease, Payments			$ 1,850	952
Minimum [Member]
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Term of Contract	10 months 24 days		10 months 24 days
Lessee, Operating Lease, Renewal Term	10 years		10 years
Maximum [Member]
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Term of Contract	48 years 2 months 12 days		48 years 2 months 12 days
Lessee, Operating Lease, Renewal Term	20 years		20 years
Operating Expense [Member]
Lessee, Lease, Description [Line Items]
Lease, Cost	$ 605	417	$ 1,138	834
General and Administrative Expenses
Lessee, Lease, Description [Line Items]
Lease, Cost	$ 436	$ 429	$ 873	$ 858

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Leases - Maturity of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Leases [Abstract]
2022	$ 1,934
2023	3,875
2023	3,914
2024	3,959
2025	2,993
Thereafter	83,985
Lessee, Operating Lease, Liability, Payments, Due	100,660
Less: Imputed interest	(64,766)
Operating lease liabilities	$ 35,894	$ 33,108

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Earnings Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Earnings Per Share [Abstract]
Participating securities	162,891	202,171	164,068	200,501

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Earnings Per Share - Reconciliation of Numerator and Denominator (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Numerator
Net income attributable to common stockholders	$ 32,317	$ 32,576	$ 85,081	$ 53,507
Denominator
Weighted average common shares outstanding — basic	179,049	159,736	178,442	159,086
Shares issuable under forward sales agreements	0	1,047	0	696
Weighted average common shares outstanding — diluted	179,144	161,367	178,586	160,249
Net income per share attributable to common stockholders — basic	$ 0.18	$ 0.20	$ 0.48	$ 0.34
Net income per share attributable to common stockholders — diluted	$ 0.18	$ 0.20	$ 0.48	$ 0.33
Restricted stock
Denominator
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	163	202	164	201
Stock Compensation Plan
Denominator
Share-based compensation	95	584	144	467

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Commitments and Contingencies - Agreements (Details) $ in Millions	Jun. 30, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Letters of credit outstanding	$ 3.6

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Subsequent Events - Debt (Details) $ in Thousands	Jul. 27, 2022 USD ($) building	Jul. 26, 2022 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Debt Instrument [Line Items]
Long-term debt, gross			$ 2,444,810	$ 2,225,983
Interest Rate Swaps
Debt Instrument [Line Items]
Notional amount liabilities			0	825,000
Subsequent Event | Interest Rate Swaps
Debt Instrument [Line Items]
Number of derivative instruments | building	7
Notional amount liabilities	$ 375,000
Subsequent Event | Interest Rate Swap Due January 2028
Debt Instrument [Line Items]
Notional amount liabilities	$ 50,000
Subsequent Event | Secured Overnight Financing Rate (SOFR) | Interest Rate Swaps
Debt Instrument [Line Items]
Basis spread on variable rate	2.579%
Unsecured Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity			750,000
Unsecured Term Loans
Debt Instrument [Line Items]
Long-term debt, gross			975,000	975,000
July 2022 Credit Agreement | Unsecured Credit Facility | Subsequent Event
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 1,000,000
July 2022 Credit Agreement | Unsecured Credit Facility | Subsequent Event | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate		0.10%
Unsecured Term Loan H | Unsecured Term Loans | Subsequent Event
Debt Instrument [Line Items]
Long-term debt, gross		$ 187,500
Interest rate, effective percentage		0.85%
Unsecured Term Loan H | Unsecured Term Loans | Subsequent Event | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate		0.10%
Unsecured Term Loan I | Unsecured Term Loans | Subsequent Event
Debt Instrument [Line Items]
Long-term debt, gross		$ 187,500
Interest rate, effective percentage		0.85%
Unsecured Term Loan I | Unsecured Term Loans | Subsequent Event | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate		0.10%
$150 Million Unsecured Term Loan D | Unsecured Term Loans
Debt Instrument [Line Items]
Long-term debt, gross			$ 150,000	150,000
Interest rate, effective percentage			2.85%
$150 Million Unsecured Term Loan D | Unsecured Term Loans | Subsequent Event
Debt Instrument [Line Items]
Repayments of debt		$ 150,000
$175 Million Unsecured Term Loan E | Unsecured Term Loans
Debt Instrument [Line Items]
Long-term debt, gross			$ 175,000	$ 175,000
Interest rate, effective percentage			3.77%
$175 Million Unsecured Term Loan E | Unsecured Term Loans | Subsequent Event
Debt Instrument [Line Items]
Repayments of debt		$ 175,000