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 September 30, 2020

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
6.875% Series C Cumulative Redeemable Preferred Stock ($0.01 par value)	STAG-PC	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 November 4, 2020 was 149,230,244.

STAG Industrial, Inc.

Table of Contents 

PART I.	Financial Information	3
Item 1.	Financial Statements (unaudited)	3
	Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019	3
	Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2020 and 2019	4
	Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2020 and 2019	5
	Consolidated Statements of Equity for the Three and Nine Months Ended September 30, 2020 and 2019	6
	Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2020 and 2019	7
	Notes to Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	48
Item 4.	Controls and Procedures	49
PART II.	Other Information	50
Item 1.	Legal Proceedings	50
Item 1A.	Risk Factors	50
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	50
Item 3.	Defaults Upon Senior Securities	51
Item 4.	Mine Safety Disclosures	51
Item 5.	Other Information	51
Item 6.	Exhibits	52
	SIGNATURES	53

2

Part I. Financial Information

Item 1.  Financial Statements

STAG Industrial, Inc.

Consolidated Balance Sheets

(unaudited, in thousands, except share data)

	September 30, 2020		December 31, 2019
Assets
Rental Property:
Land	$	447,356	$	435,923
Buildings and improvements, net of accumulated depreciation of $473,369 and $387,633, respectively	3,164,553		3,087,435
Deferred leasing intangibles, net of accumulated amortization of $264,262 and $241,304, respectively	439,046		475,149
Total rental property, net	4,050,955		3,998,507
Cash and cash equivalents	70,137		9,041
Restricted cash	4,623		2,823
Tenant accounts receivable	66,761		57,592
Prepaid expenses and other assets	49,157		38,231
Interest rate swaps	—		303
Operating lease right-of-use assets	24,124		15,129
Assets held for sale, net	—		43,019
Total assets	$	4,265,757	$	4,164,645
Liabilities and Equity
Liabilities:
Unsecured credit facility	$	—	$	146,000
Unsecured term loans, net	970,696		871,375
Unsecured notes, net	573,181		572,883
Mortgage notes, net	52,365		54,755
Accounts payable, accrued expenses and other liabilities	74,619		53,737
Interest rate swaps	45,812		18,819
Tenant prepaid rent and security deposits	23,413		21,993
Dividends and distributions payable	18,302		17,465
Deferred leasing intangibles, net of accumulated amortization of $14,176 and $12,064, respectively	24,991		26,738
Operating lease liabilities	26,414		16,989
Total liabilities	1,809,793		1,800,754
Commitments and contingencies (Note 11)
Equity:
Preferred stock, par value $0.01 per share, 20,000,000 shares authorized at September 30, 2020 and December 31, 2019,
Series C, 3,000,000 shares (liquidation preference of $25.00 per share) issued and outstanding at September 30, 2020 and December 31, 2019	75,000		75,000
Common stock, par value $0.01 per share, 300,000,000 shares authorized at September 30, 2020 and December 31, 2019, respectively, 149,227,013 and 142,815,593 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively	1,492		1,428
Additional paid-in capital	3,155,271		2,970,553
Cumulative dividends in excess of earnings	(782,037)		(723,027)
Accumulated other comprehensive loss	(45,055)		(18,426)
Total stockholders’ equity	2,404,671		2,305,528
Noncontrolling interest	51,293		58,363
Total equity	2,455,964		2,363,891
Total liabilities and equity	$	4,265,757	$	4,164,645

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 September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Revenue
Rental income	$	117,247	$	102,294	$	353,057	$	294,271
Other income	48		127		403		498
Total revenue	117,295		102,421		353,460		294,769
Expenses
Property	20,817		18,157		63,156		54,623
General and administrative	9,537		8,924		29,316		26,723
Depreciation and amortization	53,921		46,908		160,215		133,844
Loss on impairments	3,172		4,413		3,172		9,757
Other expenses	436		458		1,500		1,284
Total expenses	87,883		78,860		257,359		226,231
Other income (expense)
Interest and other income	165		12		400		30
Interest expense	(15,928)		(14,053)		(46,125)		(39,080)
Loss on extinguishment of debt	—		—		(834)		—
Gain on involuntary conversion	1,500		—		2,157		—
Gain on the sales of rental property, net	9,060		1,670		56,864		3,261
Total other income (expense)	(5,203)		(12,371)		12,462		(35,789)
Net income	$	24,209	$	11,190	$	108,563	$	32,749
Less: income attributable to noncontrolling interest after preferred stock dividends	466		290		2,471		912
Net income attributable to STAG Industrial, Inc.	$	23,743	$	10,900	$	106,092	$	31,837
Less: preferred stock dividends	1,289		1,289		3,867		3,867
Less: amount allocated to participating securities	68		78		204		236
Net income attributable to common stockholders	$	22,386	$	9,533	$	102,021	$	27,734
Weighted average common shares outstanding — basic	148,997		127,272		148,412		122,460
Weighted average common shares outstanding — diluted	149,905		127,469		148,865		122,720
Net income per share — basic and diluted
Net income per share attributable to common stockholders — basic	$	0.15	$	0.07	$	0.69	$	0.23
Net income per share attributable to common stockholders — diluted	$	0.15	$	0.07	$	0.69	$	0.23

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 September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Net income	$	24,209	$	11,190	$	108,563	$	32,749
Other comprehensive income (loss):
Income (loss) on interest rate swaps	4,927		(6,435)		(27,273)		(29,441)
Other comprehensive income (loss)	4,927		(6,435)		(27,273)		(29,441)
Comprehensive income	29,136		4,755		81,290		3,308
Income attributable to noncontrolling interest after preferred stock dividends	(466)		(290)		(2,471)		(912)
Other comprehensive (income) loss attributable to noncontrolling interest	(145)		176		644		930
Comprehensive income attributable to STAG Industrial, Inc.	$	28,525	$	4,641	$	79,463	$	3,326

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 Loss		Total Stockholders’ Equity		Noncontrolling Interest - Unit Holders in Operating Partnership		Total Equity
			Shares	Amount
Three months ended September 30, 2020
Balance, June 30, 2020	$	75,000	148,941,121	$	1,489	$	3,148,163	$	(750,770)	$	(49,837)	$	2,424,045	$	56,272	$	2,480,317
Proceeds from sales of common stock, net	—		—	—		(21)		—		—		(21)		—		(21)
Dividends and distributions, net	—		—	—		—		(55,010)		—		(55,010)		(1,411)		(56,421)
Non-cash compensation activity, net	—		3,518	—		1,972		—		—		1,972		981		2,953
Redemption of common units to common stock	—		282,374	3		4,453		—		—		4,456		(4,456)		—
Rebalancing of noncontrolling interest	—		—	—		704		—		—		704		(704)		—
Other comprehensive income	—		—	—		—		—		4,782		4,782		145		4,927
Net income	—		—	—		—		23,743		—		23,743		466		24,209
Balance, September 30, 2020	$	75,000	149,227,013	$	1,492	$	3,155,271	$	(782,037)	$	(45,055)	$	2,404,671	$	51,293	$	2,455,964
Three months ended September 30, 2019
Balance, June 30, 2019	$	75,000	126,372,945	$	1,264	$	2,501,013	$	(653,759)	$	(17,771)	$	1,905,747	$	57,505	$	1,963,252
Proceeds from sales of common stock, net	—		6,375,129	64		183,148		—		—		183,212		—		183,212
Dividends and distributions, net	—		—	—		—		(47,465)		—		(47,465)		(1,375)		(48,840)
Non-cash compensation activity, net	—		3,162	—		1,675		—		—		1,675		901		2,576
Redemption of common units to common stock	—		207,152	2		3,001		—		—		3,003		(3,003)		—
Rebalancing of noncontrolling interest	—		—	—		(1,719)		—		—		(1,719)		1,719		—
Other comprehensive loss	—		—	—		—		—		(6,259)		(6,259)		(176)		(6,435)
Net income	—		—	—		—		10,900		—		10,900		290		11,190
Balance, September 30, 2019	$	75,000	132,958,388	$	1,330	$	2,687,118	$	(690,324)	$	(24,030)	$	2,049,094	$	55,861	$	2,104,955
Nine months ended September 30, 2020
Balance, December 31, 2019	$	75,000	142,815,593	$	1,428	$	2,970,553	$	(723,027)	$	(18,426)	$	2,305,528	$	58,363	$	2,363,891
Proceeds from sales of common stock, net	—		5,600,000	56		172,579		—		—		172,635		—		172,635
Dividends and distributions, net	—		—	—		—		(164,712)		—		(164,712)		(4,412)		(169,124)
Non-cash compensation activity, net	—		81,316	1		3,084		(390)		—		2,695		4,577		7,272
Redemption of common units to common stock	—		730,104	7		11,535		—		—		11,542		(11,542)		—
Rebalancing of noncontrolling interest	—		—	—		(2,480)		—		—		(2,480)		2,480		—
Other comprehensive loss	—		—	—		—		—		(26,629)		(26,629)		(644)		(27,273)
Net income	—		—	—		—		106,092		—		106,092		2,471		108,563
Balance, September 30, 2020	$	75,000	149,227,013	$	1,492	$	3,155,271	$	(782,037)	$	(45,055)	$	2,404,671	$	51,293	$	2,455,964
Nine months ended September 30, 2019
Balance, December 31, 2018	$	75,000	112,165,786	$	1,122	$	2,118,179	$	(584,979)	$	4,481	$	1,613,803	$	55,829	$	1,669,632
Leases cumulative effect adjustment	—		—	—		—		(214)		—		(214)		—		(214)
Proceeds from sales of common stock, net	—		19,997,332	201		567,876		—		—		568,077		—		568,077
Dividends and distributions, net	—		—	—		—		(136,595)		—		(136,595)		(5,247)		(141,842)
Non-cash compensation activity, net	—		134,188	1		2,198		(373)		—		1,826		4,168		5,994
Redemption of common units to common stock	—		661,082	6		9,232		—		—		9,238		(9,238)		—
Rebalancing of noncontrolling interest	—		—	—		(10,367)		—		—		(10,367)		10,367		—
Other comprehensive loss	—		—	—		—		—		(28,511)		(28,511)		(930)		(29,441)
Net income	—		—	—		—		31,837		—		31,837		912		32,749
Balance, September 30, 2019	$	75,000	132,958,388	$	1,330	$	2,687,118	$	(690,324)	$	(24,030)	$	2,049,094	$	55,861	$	2,104,955

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

6

STAG Industrial, Inc.

Consolidated Statements of Cash Flows

(unaudited, in thousands)

	Nine months ended September 30,
	2020		2019
Cash flows from operating activities:
Net income	$	108,563	$	32,749
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	160,215		133,844
Loss on impairments	3,172		9,757
Gain on involuntary conversion	(2,157)		—
Non-cash portion of interest expense	2,172		1,909
Amortization of above and below market leases, net	3,629		3,344
Straight-line rent adjustments, net	(8,170)		(8,586)
Dividends on forfeited equity compensation	—		7
Loss on extinguishment of debt	834		—
Gain on the sales of rental property, net	(56,864)		(3,261)
Non-cash compensation expense	8,736		7,371
Change in assets and liabilities:
Tenant accounts receivable	1,181		509
Prepaid expenses and other assets	(13,638)		(10,525)
Accounts payable, accrued expenses and other liabilities	15,038		8,834
Tenant prepaid rent and security deposits	1,420		(1,022)
Total adjustments	115,568		142,181
Net cash provided by operating activities	224,131		174,930
Cash flows from investing activities:
Acquisitions of land and buildings and improvements	(162,086)		(616,647)
Additions of land and building and improvements	(39,687)		(40,193)
Acquisitions of other assets	(450)		(2,513)
Acquisitions of operating lease right-of-use assets	(2,321)		—
Proceeds from sales of rental property, net	121,339		23,700
Proceeds from involuntary conversion	782		—
Acquisition deposits, net	(1,124)		(1,190)
Acquisitions of deferred leasing intangibles	(32,815)		(128,832)
Acquisitions of operating lease liabilities	2,321		—
Net cash used in investing activities	(114,041)		(765,675)
Cash flows from financing activities:
Proceeds from unsecured credit facility	387,000		768,000
Repayment of unsecured credit facility	(533,000)		(790,500)
Proceeds from unsecured term loans	400,000		175,000
Repayment of unsecured term loans	(300,000)		—
Repayment of mortgage notes	(2,485)		(1,441)
Payment of loan fees and costs	(1,129)		(1,226)
Payment of defeasance fees and other costs	(425)		—
Proceeds from sales of common stock, net	172,605		568,390
Dividends and distributions	(168,288)		(139,303)
Repurchase and retirement of share-based compensation	(1,472)		(1,444)
Net cash provided by (used in) financing activities	(47,194)		577,476
Increase (decrease) in cash and cash equivalents and restricted cash	62,896		(13,269)
Cash and cash equivalents and restricted cash—beginning of period	11,864		22,542
Cash and cash equivalents and restricted cash—end of period	$	74,760	$	9,273
Supplemental disclosure:
Cash paid for interest, net of capitalized interest	$	41,797	$	35,372
Supplemental schedule of non-cash investing and financing activities
Acquisitions of land and buildings and improvements	$	(482)	$	(72)
Acquisitions of deferred leasing intangibles	$	(106)	$	(24)
Change in additions of land, building, and improvements included in accounts payable, accrued expenses, and other liabilities	$	(3,970)	$	(10,824)
Additions to building and other capital improvements from non-cash compensation	$	(24)	$	(59)
Change in loan fees, costs, and offering costs included in accounts payable, accrued expenses, and other liabilities	$	(1,020)	$	(314)
Leases cumulative effect adjustment	$	—	$	(214)
Dividends and distributions accrued	$	18,302	$	16,293

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 September 30, 2020 and December 31, 2019, the Company owned a 97.8% and 97.5%, 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 and partnerships, including the Operating Partnership, except where context otherwise requires.

As of September 30, 2020, the Company owned 462 buildings in 38 states with approximately 92.3 million rentable square feet, consisting of 384 warehouse/distribution buildings, 70 light manufacturing buildings, and eight flex/office buildings.

COVID-19 Pandemic

Currently, one of the most significant risks and uncertainties facing the Company and the real estate industry generally is the potential adverse effect of 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. While the Company did not incur significant disruptions from the COVID-19 pandemic during the nine months ended September 30, 2020, a number of the Company’s tenants requested rent deferral or rent abatement as a result of the pandemic and other tenants may make requests in the future. The Company entered into a limited number of rent deferral agreements during the three and nine months ended September 30, 2020, which resulted in the recognition of approximately $0.4 million and $1.9 million of rent deferrals during the three and nine months ended September 30, 2020, respectively. The Company evaluates 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, 2019.

8

Basis of Presentation

The Company’s consolidated financial statements include the accounts of the Company, the Operating Partnership, and their 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.

New Accounting Standards

In March 2020, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the quarter ended March 31, 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. We have not modified any contracts to date, however, we will evaluate any debt, derivative and lease contracts that are modified in the future to ensure they are eligible for modification relief and apply the practical expedients as needed.

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)	September 30, 2020		December 31, 2019
Cash and cash equivalents	$	70,137	$	9,041
Restricted cash	4,623		2,823
Total cash and cash equivalents and restricted cash	$	74,760	$	11,864

Taxes

Federal Income Taxes

The Company’s taxable REIT subsidiary recognized net income of approximately $0, $0, $0 and $0.3 million for the three and nine months ended September 30, 2020 and 2019, respectively, which has been included on the accompanying Consolidated Statements of Operations.

State and Local Income, Excise, and Franchise Tax

State and local income, excise, and franchise taxes in the amount of $0.4 million, $1.3 million, $0.3 million and $0.9 million have been recorded in other expenses on the accompanying Consolidated Statements of Operations for the three and nine months ended September 30, 2020 and 2019, respectively.

Uncertain Tax Positions

As of September 30, 2020 and December 31, 2019, 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.

9

3. Rental Property

The following table summarizes the components of rental property as of September 30, 2020 and December 31, 2019.

Rental Property (in thousands)	September 30, 2020		December 31, 2019
Land	$	447,356	$	435,923
Buildings, net of accumulated depreciation of $311,326 and $254,458, respectively	2,862,026		2,787,234
Tenant improvements, net of accumulated depreciation of $23,641 and $21,487, respectively	39,495		38,339
Building and land improvements, net of accumulated depreciation of $138,402 and $111,688, respectively	243,807		232,456
Construction in progress	19,225		29,406
Deferred leasing intangibles, net of accumulated amortization of $264,262 and $241,304, respectively	439,046		475,149
Total rental property, net	$	4,050,955	$	3,998,507

Acquisitions

The following table summarizes the acquisitions of the Company during the three and nine months ended September 30, 2020.

Market (1)	Date Acquired	Square Feet	Number of Buildings	Purchase Price (in thousands)
Detroit, MI	January 10, 2020	491,049	1	$	29,543
Rochester, NY	January 10, 2020	124,850	1	8,565
Minneapolis/St Paul, MN	February 6, 2020	139,875	1	10,460
Sacramento, CA	February 6, 2020	160,534	1	18,468
Richmond, VA	February 6, 2020	78,128	1	5,481
Milwaukee/Madison, WI	February 7, 2020	81,230	1	7,219
Detroit, MI	February 11, 2020	311,123	1	23,141
Philadelphia, PA	March 9, 2020	78,000	1	6,571
Tulsa, OK	March 9, 2020	134,600	1	9,895
Three months ended March 31, 2020		1,599,389	9	119,343
Sacramento, CA	June 11, 2020	54,463	1	5,730
Chicago, IL	June 29, 2020	67,817	1	6,184
Three months ended June 30, 2020		122,280	2	11,914
Philadelphia, PA	August 31, 2020	112,294	1	8,427
Pittsburgh, PA	September 3, 2020	125,000	1	15,580
Pittsburgh, PA	September 24, 2020	66,387	1	6,685
Charlotte, NC	September 28, 2020	50,000	1	5,729
Cleveland, OH	September 29, 2020	276,000	1	28,261
Three months ended September 30, 2020		629,681	5	64,682
Nine months ended September 30, 2020		2,351,350	16	$	195,939

(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.

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The following table summarizes the allocation of the consideration paid at the date of acquisition during the nine months ended September 30, 2020 for the acquired assets and liabilities in connection with the acquisitions identified in the table above.

Acquired Assets and Liabilities	Purchase Price (in thousands)		Weighted Average Amortization Period (years) of Intangibles at Acquisition
Land	$	15,338	N/A
Buildings	135,570		N/A
Tenant improvements	2,096		N/A
Building and land improvements	8,895		N/A
Construction in progress	669		N/A
Other assets	450		N/A
Operating lease right-of-use assets	2,321		N/A
Deferred leasing intangibles - In-place leases	21,496		8.0
Deferred leasing intangibles - Tenant relationships	10,150		11.1
Deferred leasing intangibles - Above market leases	3,962		12.6
Deferred leasing intangibles - Below market leases	(2,687)		5.3
Operating lease liabilities	(2,321)		N/A
Total purchase price	$	195,939

The following table summarizes the results of operations for the three and nine months ended September 30, 2020 for the buildings acquired during the nine months ended September 30, 2020 included in the Company’s Consolidated Statements of Operations from the date of acquisition.

Results of Operations (in thousands)	Three months ended September 30, 2020		Nine months ended September 30, 2020
Total revenue	$	3,298	$	8,046
Net income	$	601	$	1,462

Dispositions

During the nine months ended September 30, 2020, the Company sold five buildings to third parties comprised of approximately 1.7 million rentable square feet with a net book value of approximately $64.4 million. These buildings contributed approximately $0.1 million, $0.8 million, $1.3 million and $4.5 million to revenue for the three and nine months ended September 30, 2020 and 2019, respectively. These buildings contributed approximately $(0.3) million, $(0.4) million, $(0.2) million and $0.3 million to net income (loss) (exclusive of gain on the sales of rental property, net and loss on extinguishment of debt) for the three and nine months ended September 30, 2020 and 2019, respectively. Net proceeds from the sales of rental property were approximately $121.3 million and the Company recognized the full gain on the sales of rental property, net, of approximately $56.9 million for the nine months ended September 30, 2020.

Loss on Impairments

The following table summarizes the Company’s loss on impairments for assets held and used during the nine months ended September 30, 2020.

Market(1)	Number of Buildings	Event or Change in Circumstance Leading to Impairment Evaluation(2)	Valuation technique utilized to estimate fair value		Fair Value(3)		Loss on Impairments
					(in thousands)
Williamsport, PA	1	Change in estimated hold period	Discounted cash flows	(4)
Three months ended September 30, 2020					$	5,019	$	3,172
Nine months ended September 30, 2020					$	5,019	$	3,172

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

(2)The Company tested the asset group for impairment utilizing a recovery analysis, and it was determined that the carrying value of the property and intangibles were not recoverable from the estimated future undiscounted cash flows.

(3)The estimated fair value of the property is based on Level 3 inputs and is a non-recurring fair value measurement. Level 3 is defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

(4)Level 3 inputs used to determine fair value for the property impaired for the three months ended September 30, 2020: discount rate of 10.5% and exit capitalization rate of 10.0%.

During the three and nine months ended September 30, 2019, the Company recognized approximately $4.4 million and $9.8 million, respectively, of loss on impairments related to six buildings.

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Gain on Involuntary Conversion

During the three and nine months ended September 30, 2020, the Company recognized a gain on involuntary conversion of approximately $1.5 million and $2.2 million, respectively, related to an eminent domain taking of a portion of a parcel of land. During the three and nine months ended September 30, 2019, the Company did not recognize any gain on involuntary conversion.

Deferred Leasing Intangibles

The following table summarizes the deferred leasing intangibles on the accompanying Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019.

	September 30, 2020						December 31, 2019
Deferred Leasing Intangibles (in thousands)	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Above market leases	$	93,002	$	(36,711)	$	56,291	$	92,607	$	(32,115)	$	60,492
Other intangible lease assets	610,306		(227,551)		382,755		623,846		(209,189)		414,657
Total deferred leasing intangible assets	$	703,308	$	(264,262)	$	439,046	$	716,453	$	(241,304)	$	475,149
Below market leases	$	39,167	$	(14,176)	$	24,991	$	38,802	$	(12,064)	$	26,738
Total deferred leasing intangible liabilities	$	39,167	$	(14,176)	$	24,991	$	38,802	$	(12,064)	$	26,738

The following table summarizes the amortization expense and the net decrease to rental income for the amortization of deferred leasing intangibles during the three and nine months ended September 30, 2020 and 2019.

	Three months ended September 30,				Nine months ended September 30,
Deferred Leasing Intangibles Amortization (in thousands)	2020		2019		2020		2019
Net decrease to rental income related to above and below market lease amortization	$	1,482	$	1,248	$	3,646	$	3,361
Amortization expense related to other intangible lease assets	$	21,780	$	18,472	$	63,158	$	53,185

The following table summarizes the amortization of deferred leasing intangibles over the next five calendar years beginning with 2020 as of September 30, 2020.

Year	Amortization Expense Related to Other Intangible Lease Assets (in thousands)		Net Decrease to Rental Income Related to Above and Below Market Lease Amortization (in thousands)
Remainder of 2020	$	18,290	$	859
2021	$	65,614	$	2,764
2022	$	56,254	$	2,298
2023	$	47,759	$	2,504
2024	$	38,947	$	2,812

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 September 30, 2020 and December 31, 2019.

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Loan	Principal Outstanding as of September 30, 2020 (in thousands)		Principal Outstanding as of December 31, 2019 (in thousands)		Interest  Rate(1)(2)		Maturity Date	Prepayment Terms(3)
Unsecured credit facility:
Unsecured Credit Facility(4)	$	—	$	146,000	L + 0.90%		January 12, 2024	i
Total unsecured credit facility	—		146,000
Unsecured term loans:
Unsecured Term Loan C(5)	—		150,000		2.39	%	September 29, 2020	i
Unsecured Term Loan B(5)	—		150,000		3.05	%	March 21, 2021	i
Unsecured Term Loan A	150,000		150,000		3.38	%	March 31, 2022	i
Unsecured Term Loan D	150,000		150,000		2.85	%	January 4, 2023	i
Unsecured Term Loan G(6)	300,000		—		2.77	%	April 18, 2023	i
Unsecured Term Loan E	175,000		175,000		3.92	%	January 15, 2024	i
Unsecured Term Loan F	200,000		100,000		3.11	%	January 12, 2025	i
Total unsecured term loans	975,000		875,000
Less: Total unamortized deferred financing fees and debt issuance costs	(4,304)		(3,625)
Total carrying value unsecured term loans, net	970,696		871,375
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
Total unsecured notes	575,000		575,000
Less: Total unamortized deferred financing fees and debt issuance costs	(1,819)		(2,117)
Total carrying value unsecured notes, net	573,181		572,883
Mortgage notes (secured debt):
Wells Fargo Bank, National Association CMBS Loan	49,013		51,406		4.31	%	December 1, 2022	iii
Thrivent Financial for Lutherans	3,587		3,679		4.78	%	December 15, 2023	iv
Total mortgage notes	52,600		55,085
Add: Total unamortized fair market value premiums	31		39
Less: Total unamortized deferred financing fees and debt issuance costs	(266)		(369)
Total carrying value mortgage notes, net	52,365		54,755
Total / weighted average interest rate(7)	$	1,596,242	$	1,645,013	3.62	%

(1)Interest rate as of September 30, 2020. At September 30, 2020, the one-month LIBOR (“L”) was 0.14825%. 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, 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 1.0%, with the exception of the Unsecured Term Loan G which has a spread of 1.5% and is subject to a minimum rate for LIBOR of 0.25%. As of September 30, 2020, one-month LIBOR for the Unsecured Term Loans A, D, E, F, and G was swapped to a fixed rate of 2.38%, 1.85%, 2.92%, 2.11%, and 1.17%, respectively. One-month LIBOR for the Unsecured Term Loan G will be swapped to a fixed rate of 0.28% effective March 19, 2021.

(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, however can be defeased; and (iv) pre-payable without penalty three months prior to the maturity date.

(4)The capacity of the unsecured credit facility is $500.0 million. Deferred financing fees and debt issuance costs, net of accumulated amortization related to the unsecured credit facility of approximately $1.8 million and $2.4 million is included in prepaid expenses and other assets on the accompanying Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019, respectively. The initial maturity date is January 15, 2023, 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)The Unsecured Term Loan B and the Unsecured Term Loan C were paid in full on April 17, 2020 in connection with the execution of the Unsecured Term Loan G.

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(6)The initial maturity date is April 16, 2021, which may be extended pursuant to two one-year extension options exercisable by the Company in its discretion upon advance written notice. Exercise of each one-year 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.

(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.

The aggregate undrawn nominal commitment on the unsecured credit facility as of September 30, 2020 was approximately $497.0 million, including issued letters of credit. The Company’s actual borrowing capacity at any given point in time may be less and is restricted to a maximum amount based on the Company’s debt covenant compliance. Total accrued interest for the Company’s indebtedness was approximately $7.8 million and $6.3 million as of September 30, 2020 and December 31, 2019, 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 nine months ended September 30, 2020 and 2019.

	Three months ended September 30,				Nine months ended September 30,
Costs Included in Interest Expense (in thousands)	2020		2019		2020		2019
Amortization of deferred financing fees and debt issuance costs and fair market value premiums	$	750	$	673	$	2,172	$	1,909
Facility, unused, and other fees	$	315	$	348	$	995	$	1,118

On April 29, 2020, the mortgage note associated with the Wells Fargo, National Association CMBS Loan was partially defeased in the amount of approximately $1.0 million in connection with the sale of the Johnstown, NY property, which had served as partial collateral for the mortgage note. The associated defeasance fees and unamortized deferred financing fees and debt issuance costs of approximately $0.1 million were written off to loss on extinguishment of debt in the accompanying Consolidated Statement of Operations during the nine months ended September 30, 2020.

On April 17, 2020, the Company entered into the $300.0 million Unsecured Term Loan G with Wells Fargo, National Association, as administrative agent on behalf of the various lenders under the agreement. In connection with the execution of the Unsecured Term Loan G, the Unsecured Term Loan B and Unsecured Term Loan C were paid in full. As of September 30, 2020, the Unsecured Term Loan G bore an interest rate of LIBOR plus a spread of 1.5% based on the Company’s debt rating, as defined in the loan agreement, and subject to a minimum rate for LIBOR of 0.25%. The Unsecured Term Loan G matures on April 16, 2021, subject to two one year extension options at the Company's discretion, and subject to certain conditions (other than lender discretion) such as the absence of default and the payment of an extension fee. The Company intends to exercise both extension options. To exercise the extension options the Company is required pay a fee equal to (i) 0.15% of the outstanding amount on the effective day of the first extension period and (ii) 0.20% of the outstanding amount on the effective day of the second extension period. In connection with the refinancing, the Company incurred approximately $2.1 million in deferred financing fees, including approximately $1.1 million of accrued extension fees, which are being amortized through the extended maturity date of April 18, 2023. In connection with the refinancing, the Company also recognized a loss on extinguishment of debt of approximately $0.7 million related to associated unamortized deferred financing fees and debt issuance costs related to the Unsecured Term Loan B and the Unsecured Term Loan C and other third-party costs. The Company is required to pay an annual fee of $35,000. The Unsecured Term Loan G has an accordion feature that allows the Company to increase its borrowing capacity to $600.0 million, subject to the satisfaction of certain conditions and lender consents. The Company and certain wholly owned subsidiaries of the Operating Partnership are guarantors of the Unsecured Term Loan G. The agreement also contains financial and other covenants substantially similar to the covenants in the Company’s unsecured credit facility.

On March 25, 2020, the Company drew the remaining $100.0 million of the $200.0 million Unsecured Term Loan F that was entered into on July 12, 2019.

14

Financial Covenant Considerations

The Company was in compliance with all financial and other covenants as of September 30, 2020 and December 31, 2019 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 $82.3 million and $85.5 million at September 30, 2020 and December 31, 2019, respectively, and is limited to senior, property-level secured debt financing arrangements.

Fair Value of Debt

The following table summarizes the aggregate principal outstanding under the Company’s debt arrangements and the corresponding estimate of fair value as of September 30, 2020 and December 31, 2019.

	September 30, 2020				December 31, 2019
Indebtedness (in thousands)	Principal Outstanding		Fair Value		Principal Outstanding		Fair Value
Unsecured credit facility	$	—	$	—	$	146,000	$	146,000
Unsecured term loans	975,000		965,296		875,000		875,000
Unsecured notes	575,000		628,955		575,000		614,493
Mortgage notes	52,600		55,009		55,085		56,021
Total principal amount	1,602,600		$	1,649,260	1,651,085		$	1,691,514
Add: Total unamortized fair market value premiums	31				39
Less: Total unamortized deferred financing fees and debt issuance costs	(6,389)				(6,111)
Total carrying value	$	1,596,242			$	1,645,013

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

15

The following table summarizes the Company’s outstanding interest rate swaps as of September 30, 2020. 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
Royal Bank of Canada	Jan-08-2015	Mar-20-2015	$	25,000	$	(182)	1.7090	%	One-month L	Mar-21-2021
The Toronto-Dominion Bank	Jan-08-2015	Mar-20-2015	$	25,000	$	(182)	1.7105	%	One-month L	Mar-21-2021
The Toronto-Dominion Bank	Jan-08-2015	Sep-10-2017	$	100,000	$	(970)	2.2255	%	One-month L	Mar-21-2021
Wells Fargo, N.A.	Jan-08-2015	Mar-20-2015	$	25,000	$	(639)	1.8280	%	One-month L	Mar-31-2022
The Toronto-Dominion Bank	Jan-08-2015	Feb-14-2020	$	25,000	$	(874)	2.4535	%	One-month L	Mar-31-2022
Regions Bank	Jan-08-2015	Feb-14-2020	$	50,000	$	(1,766)	2.4750	%	One-month L	Mar-31-2022
Capital One, N.A.	Jan-08-2015	Feb-14-2020	$	50,000	$	(1,808)	2.5300	%	One-month L	Mar-31-2022
The Toronto-Dominion Bank	Jul-20-2017	Oct-30-2017	$	25,000	$	(979)	1.8485	%	One-month L	Jan-04-2023
Royal Bank of Canada	Jul-20-2017	Oct-30-2017	$	25,000	$	(980)	1.8505	%	One-month L	Jan-04-2023
Wells Fargo, N.A.	Jul-20-2017	Oct-30-2017	$	25,000	$	(980)	1.8505	%	One-month L	Jan-04-2023
PNC Bank, N.A.	Jul-20-2017	Oct-30-2017	$	25,000	$	(978)	1.8485	%	One-month L	Jan-04-2023
PNC Bank, N.A.	Jul-20-2017	Oct-30-2017	$	50,000	$	(1,956)	1.8475	%	One-month L	Jan-04-2023
The Toronto-Dominion Bank	Apr-20-2020	Sep-29-2020	$	75,000	$	(272)	0.2750	%	One-month L	Apr-18-2023
Wells Fargo, N.A.	Apr-20-2020	Sep-29-2020	$	75,000	$	(279)	0.2790	%	One-month L	Apr-18-2023
The Toronto-Dominion Bank	Apr-20-2020	Mar-19-2021	$	75,000	$	(230)	0.2750	%	One-month L	Apr-18-2023
Wells Fargo, N.A.	Apr-20-2020	Mar-19-2021	$	75,000	$	(239)	0.2800	%	One-month L	Apr-18-2023
The Toronto-Dominion Bank	Jul-24-2018	Jul-26-2019	$	50,000	$	(4,568)	2.9180	%	One-month L	Jan-12-2024
PNC Bank, N.A.	Jul-24-2018	Jul-26-2019	$	50,000	$	(4,568)	2.9190	%	One-month L	Jan-12-2024
Bank of Montreal	Jul-24-2018	Jul-26-2019	$	50,000	$	(4,568)	2.9190	%	One-month L	Jan-12-2024
U.S. Bank, N.A.	Jul-24-2018	Jul-26-2019	$	25,000	$	(2,284)	2.9190	%	One-month L	Jan-12-2024
Wells Fargo, N.A.	May-02-2019	Jul-15-2020	$	50,000	$	(4,412)	2.2460	%	One-month L	Jan-15-2025
U.S. Bank, N.A.	May-02-2019	Jul-15-2020	$	50,000	$	(4,411)	2.2459	%	One-month L	Jan-15-2025
Regions Bank	May-02-2019	Jul-15-2020	$	50,000	$	(4,411)	2.2459	%	One-month L	Jan-15-2025
Bank of Montreal	Jul-16-2019	Jul-15-2020	$	50,000	$	(3,276)	1.7165	%	One-month L	Jan-15-2025

The following table summarizes the fair value of the interest rate swaps outstanding as of September 30, 2020 and December 31, 2019.

Balance Sheet Line Item (in thousands)	Notional Amount September 30, 2020		Fair Value September 30, 2020		Notional Amount December 31, 2019		Fair Value December 31, 2019
Interest rate swaps-Asset	$	—	$	—	$	250,000	$	303
Interest rate swaps-Liability	$	1,125,000	$	(45,812)	$	850,000	$	(18,819)

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 into 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 $16.6 million will be reclassified from accumulated other comprehensive loss as an increase to interest expense over the next 12 months.

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The following table summarizes the effect of cash flow hedge accounting and the location in the consolidated financial statements for the three and nine months ended September 30, 2020 and 2019.

	Three months ended September 30,				Nine months ended September 30,
Effect of Cash Flow Hedge Accounting (in thousands)	2020		2019		2020		2019
Income (loss) recognized in accumulated other comprehensive loss on interest rate swaps	$	169	$	(5,913)	$	(36,167)	$	(26,715)
Income (loss) reclassified from accumulated other comprehensive loss into income as interest expense	$	(4,758)	$	522	$	(8,894)	$	2,726
Total interest expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded	$	15,928	$	14,053	$	46,125	$	39,080

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 September 30, 2020, the Company had not breached the provisions of these agreements and had not posted any collateral related to these agreements. If the Company had breached any of these provisions at September 30, 2020, it could have been required to settle its obligations under the agreement of the interest rate swaps in a net liability position by counterparty plus accrued interest for approximately $46.9 million.

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 itself and its counterparties. However, as of September 30, 2020 and December 31, 2019, 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 are accounted for at fair value on a recurring basis as of September 30, 2020 and December 31, 2019. 

			Fair Value Measurements as of September 30, 2020 Using
Balance Sheet Line Item (in thousands)	Fair Value September 30, 2020		Level 1		Level 2		Level 3
Interest rate swaps-Asset	$	—	$	—	$	—	$	—
Interest rate swaps-Liability	$	(45,812)	$	—	$	(45,812)	$	—

			Fair Value Measurements as of December 31, 2019 Using
Balance Sheet Line Item (in thousands)	Fair Value December 31, 2019		Level 1		Level 2		Level 3
Interest rate swaps-Asset	$	303	$	—	$	303	$	—
Interest rate swaps-Liability	$	(18,819)	$	—	$	(18,819)	$	—

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6. Equity

Preferred Stock

The following table summarizes the Company’s outstanding preferred stock issuances as of September 30, 2020.

Preferred Stock Issuances	Issuance Date	Number of Shares	Liquidation Value Per Share		Interest Rate
6.875% Series C Cumulative Redeemable Preferred Stock ("Series C Preferred Stock")	March 17, 2016	3,000,000	$	25.00	6.875	%

The following tables summarize the dividends attributable to the Company’s outstanding preferred stock issuances during the nine months ended September 30, 2020 and the year ended December 31, 2019.

Quarter Ended 2020	Declaration Date	Series C Preferred Stock Per Share		Payment Date
September 30	July 9, 2020	$	0.4296875	September 30, 2020
June 30	April 9, 2020	0.4296875		June 30, 2020
March 31	January 8, 2020	0.4296875		March 31, 2020
Total		$	1.2890625

Quarter Ended 2019	Declaration Date	Series C Preferred Stock Per Share		Payment Date
December 31	October 15, 2019	$	0.4296875	December 31, 2019
September 30	July 15, 2019	0.4296875		September 30, 2019
June 30	April 9, 2019	0.4296875		July 1, 2019
March 31	January 10, 2019	0.4296875		April 1, 2019
Total		$	1.7187500

On October 9, 2020, the Company’s board of directors declared the Series C Preferred Stock dividends for the quarter ending December 31, 2020 at a quarterly rate of $0.4296875 per share.

Common Stock

The following table summarizes the terms of the Company’s at-the market (“ATM”) common stock offering program as of September 30, 2020.

ATM Common Stock Offering Program	Date	Maximum Aggregate Offering Price (in thousands)		Aggregate Common Stock Available as of September 30, 2020 (in thousands)
2019 $600 million ATM	February 14, 2019	$	600,000	$	318,248

The table below summarizes the activity under the ATM common stock offering program during the year ended December 31, 2019 (in thousands, except share data). There was no activity under the ATM common stock offering program during the nine months ended September 30, 2020.

	Year ended December 31, 2019
ATM Common Stock Offering Program	Shares Sold	Weighted Average Price Per Share		Net Proceeds
2019 $600 million ATM	9,711,706	$	29.01	$	279,156
Total/weighted average	9,711,706	$	29.01	$	279,156

On January 13, 2020, the Company completed an underwritten public offering of an aggregate 10,062,500 shares of common stock at a price to the underwriters of $30.9022 per share, consisting of (i) 5,600,000 shares offered directly by the Company and (ii) 4,462,500 shares offered by the forward dealer in connection with certain forward sale agreements (including 1,312,500 shares offered pursuant to the underwriters’ option to purchase additional shares, which option was exercised in full). The offering closed on January 16, 2020 and the Company received net proceeds from the sale of shares offered directly by the Company of approximately $173.1 million. Subject to the Company’s right to elect cash or net share settlement, the Company has the ability to settle the forward sales agreements at any time through scheduled maturity date of the forward sale agreements of January 13, 2021.

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The following tables summarize the dividends attributable to the Company’s outstanding shares of common stock that were declared during the nine months ended September 30, 2020 and the year ended December 31, 2019.

Month Ended 2020	Declaration Date	Record Date	Per Share		Payment Date
September 30	July 9, 2020	September 30, 2020	$	0.12	October 15, 2020
August 31	July 9, 2020	August 31, 2020	0.12		September 15, 2020
July 31	July 9, 2020	July 31, 2020	0.12		August 17, 2020
June 30	April 9, 2020	June 30, 2020	0.12		July 15, 2020
May 31	April 9, 2020	May 29, 2020	0.12		June 15, 2020
April 30	April 9, 2020	April 30, 2020	0.12		May 15, 2020
March 31	January 8, 2020	March 31, 2020	0.12		April 15, 2020
February 29	January 8, 2020	February 28, 2020	0.12		March 16, 2020
January 31	January 8, 2020	January 31, 2020	0.12		February 18, 2020
Total			$	1.08

Month Ended 2019	Declaration Date	Record Date	Per Share		Payment Date
December 31	October 15, 2019	December 31, 2019	$	0.119167	January 15, 2020
November 30	October 15, 2019	November 29, 2019	0.119167		December 16, 2019
October 31	October 15, 2019	October 31, 2019	0.119167		November 15, 2019
September 30	July 15, 2019	September 30, 2019	0.119167		October 15, 2019
August 31	July 15, 2019	August 30, 2019	0.119167		September 16, 2019
July 31	July 15, 2019	July 31, 2019	0.119167		August 15, 2019
June 30	April 9, 2019	June 28, 2019	0.119167		July 15, 2019
May 31	April 9, 2019	May 31, 2019	0.119167		June 17, 2019
April 30	April 9, 2019	April 30, 2019	0.119167		May 15, 2019
March 31	January 10, 2019	March 29, 2019	0.119167		April 15, 2019
February 28	January 10, 2019	February 28, 2019	0.119167		March 15, 2019
January 31	January 10, 2019	January 31, 2019	0.119167		February 15, 2019
Total			$	1.430004

On October 9, 2020, the Company’s board of directors declared the common stock dividends for the months ending October 31, 2020, November 30, 2020, and December 31, 2020 at a monthly rate of $0.12 per share of common stock.

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Restricted Shares of Common Stock

Restricted shares of common stock granted on February 13, 2020 and January 8, 2020 to certain employees of the Company, subject to the recipient’s continued employment, will vest over four years in equal installments on January 1 of each year beginning in 2021. Refer to Note 8 for a discussion of the restricted shares of common stock granted on January 8, 2020 pursuant to the January 6, 2017 performance units. The following table summarizes activity related to the Company’s unvested restricted shares of common stock for the nine months ended September 30, 2020 and the year ended December 31, 2019.

Unvested Restricted Shares of Common Stock	Shares
Balance at December 31, 2018	190,462
Granted	110,830	(1)
Vested	(101,109)	(2)
Forfeited	(7,138)
Balance at December 31, 2019	193,045
Granted	75,419	(1)
Vested	(78,010)	(2)
Forfeited	(1,376)
Balance at September 30, 2020	189,078

(1)The fair value per share on the grant date of February 13, 2020, January 8, 2020, and January 7, 2019 was $32.64, $31.49, and $24.85, respectively.

(2)The Company repurchased and retired 33,119 and 28,504 restricted shares of common stock that vested during the nine months ended September 30, 2020 and the year ended December 31, 2019, respectively.

The weighted average grant date fair value of unvested restricted shares of common stock was $24.38 per share at December 31, 2019, $31.60 per share granted during the nine months ended September 30, 2020, $23.11 per share vested during the nine months ended September 30, 2020, $26.15 per share forfeited during the nine months ended September 30, 2020, and $27.77 per share at September 30, 2020.

The unrecognized compensation expense associated with the Company’s restricted shares of common stock at September 30, 2020 was approximately $3.7 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 restricted shares of common stock that vested during the three and nine months ended September 30, 2020 and 2019.

	Three months ended September 30,				Nine months ended September 30,
Vested Restricted Shares of Common Stock	2020		2019		2020		2019
Vested restricted shares of common stock	—		—		78,010		78,431
Fair value of vested restricted shares of common stock (in thousands)	$	—	$	—	$	2,463	$	1,951

7. Noncontrolling Interest

The following table summarizes the activity for noncontrolling interest in the Company for the nine months ended September 30, 2020 and the year ended December 31, 2019.

Noncontrolling Interest	LTIP Units	Other Common Units	Total Noncontrolling Common Units	Noncontrolling Interest
Balance at December 31, 2018	1,616,200	2,453,234	4,069,434	3.5	%
Granted/Issued	364,173	—	364,173	N/A
Forfeited	(16,618)	—	(16,618)	N/A
Conversions from LTIP units to Other Common Units	(266,397)	266,397	—	N/A
Redemptions from Other Common Units to common stock	—	(680,137)	(680,137)	N/A
Balance at December 31, 2019	1,697,358	2,039,494	3,736,852	2.5	%
Granted/Issued	278,806	—	278,806	N/A
Forfeited	—	—	—	N/A
Conversions from LTIP units to Other Common Units	(283,741)	283,741	—	N/A
Redemptions from Other Common Units to common stock	—	(730,104)	(730,104)	N/A
Balance at September 30, 2020	1,692,423	1,593,131	3,285,554	2.2	%

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The weighted average grant date fair value of outstanding LTIP units was $21.64 per unit at December 31, 2019, $29.47 per unit granted during the nine months ended September 30, 2020, $18.27 per unit converted during the nine months ended September 30, 2020, and $23.49 per unit at September 30, 2020.

LTIP Units

LTIP units granted on January 8, 2020 to non-employee, independent directors, subject to the recipient’s continued service, will vest over one year on January 1, 2021. LTIP units granted on January 8, 2020 to certain senior executive officers and senior employees, subject to the recipient’s continued employment, will vest quarterly over four years, with the first vesting date having been March 31, 2020. Refer to Note 8 for a discussion of the LTIP units granted on January 8, 2020 pursuant to the January 6, 2017 performance units.

The fair value of the LTIP units at the date of grant 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 are non-recurring fair value measurements. The following table summarizes the assumptions used in valuing such LTIP units granted during the nine months ended September 30, 2020 (excluding those LTIP units granted pursuant to the January 6, 2017 performance units; refer to Note 8 for details).

LTIP Units	Assumptions
Grant date	January 8, 2020
Expected term (years)	10
Expected volatility	18.0		%
Expected dividend yield	5.75		%
Risk-free interest rate	1.61		%
Fair value of LTIP units at issuance (in thousands)	$	4,030
LTIP units at issuance	136,741
Fair value unit price per LTIP unit at issuance	$	29.47

The following table summarizes activity related to the Company’s unvested LTIP units for the nine months ended September 30, 2020 and the year ended December 31, 2019.

Unvested LTIP Units	LTIP Units
Balance at December 31, 2018	251,216
Granted	364,173
Vested	(371,423)
Forfeited	(16,618)
Balance at December 31, 2019	227,348
Granted	278,806
Vested	(201,442)
Forfeited	—
Balance at September 30, 2020	304,712

The weighted average grant date fair value of unvested LTIP units was $23.37 per unit at December 31, 2019, $29.47 per unit granted during the nine months ended September 30, 2020, $26.23 per unit vested during the nine months ended September 30, 2020, and $27.06 per unit at September 30, 2020.

The unrecognized compensation expense associated with the Company’s LTIP units at September 30, 2020 was approximately $5.6 million and is expected to be recognized over a weighted average period of approximately 2.4 years.

The following table summarizes the fair value at vesting for the LTIP units that vested during the three and nine months ended September 30, 2020 and 2019.

	Three months ended September 30,				Nine months ended September 30,
Vested LTIP units	2020		2019		2020		2019
Vested LTIP units	27,297		29,989		201,442		234,330
Fair value of vested LTIP units (in thousands)	$	832	$	884	$	5,906	$	6,348

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8. Equity Incentive Plan

On January 8, 2020, the Company granted performance units approved by the compensation committee of the board of directors under the 2011 Plan to certain key employees of the Company. The terms of the performance units granted on January 8, 2020 are substantially the same as the terms of the performance units granted on January 7, 2019, except that the measuring period commenced on January 1, 2020 and ends on December 31, 2022.

The fair value of the performance units at the date of grant was determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation. The fair value of the performance units are based on Level 3 inputs and are 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 nine months ended September 30, 2020.

Performance Units	Assumptions
Grant date	January 8, 2020
Expected volatility	17.4		%
Expected dividend yield	5.75		%
Risk-free interest rate	1.59		%
Fair value of performance units grant (in thousands)	$	5,389

On December 31, 2019, the measuring period pursuant to the January 6, 2017 performance units concluded and it was determined that the Company’s total stockholder return exceeded the threshold percentage and return hurdle. The compensation committee of the board of directors approved the issuance of 76,096 vested LTIP units and 46,376 vested shares of common stock to the participants (of which 18,241 shares of common stock were repurchased and retired), which were issued on January 8, 2020. The compensation committee of the board of directors also approved the issuance of 65,969 LTIP units and 3,398 restricted shares of common stock that will vest over one year on December 31, 2020, which were issued on January 8, 2020.

The unrecognized compensation expense associated with the Company’s performance units at September 30, 2020 was approximately $7.3 million and is expected to be recognized over a weighted average period of approximately 1.8 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 nine months ended September 30, 2020 and 2019.

	Three months ended September 30,				Nine months ended September 30,
Non-Cash Compensation Expense (in thousands)	2020		2019		2020		2019
Restricted shares of common stock	$	487	$	447	$	1,435	$	1,318
LTIP units	981		901		2,923		2,687
Performance units	1,356		1,107		4,004		3,062
Director compensation (1)	122		101		374		304
Total non-cash compensation expense	$	2,946	$	2,556	$	8,736	$	7,371

(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 nine months ended September 30, 2020 and 2019. The number of shares of common stock granted is calculated based on the trailing ten days average common stock price ending 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”). 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 recognized during the three and nine months ended September 30, 2020 and 2019 included in the accompanying Consolidated Statements of Operations.

	Three months ended September 30,				Nine months ended September 30,
Rental Income (in thousands)	2020		2019		2020		2019
Fixed lease payments	$	92,120	$	80,262	$	273,750	$	227,337
Variable lease payments	23,757		20,189		74,351		61,628
Straight-line rental income	2,852		3,091		8,602		8,667
Net decrease to rental income related to above and below market lease amortization	(1,482)		(1,248)		(3,646)		(3,361)
Total rental income	$	117,247	$	102,294	$	353,057	$	294,271

During the nine months ended September 30, 2020 and 2019 the Company evaluated its operating leases and determined that the future collectability for 10 tenants under 11 leases was not reasonably assured. As a result the Company converted to the cash basis of accounting for these leases which resulted in a reduction of rental income of approximately $0.8 million, $1.7 million, $0, and $0 for three and nine months ended September 30, 2020 and 2019, respectively, due to the reversal of accrued rent. Additionally, there was $0.9 million, $1.5 million, $0, and $0 of contractual rental income that was not recognized for payments that were not received from these tenants for the three and nine months ended September 30, 2020 and 2019, respectively.

As of September 30, 2020 and December 31, 2019, the Company had accrued rental income of approximately $54.6 million and $44.3 million, respectively, included in tenant accounts receivable on the accompanying Consolidated Balance Sheets.

As of September 30, 2020 and December 31, 2019, the Company had approximately $28.4 million and $22.6 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 September 30, 2020 and December 31, 2019, 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 September 30, 2020 and December 31, 2019, the Company’s total liability associated with these lease security deposits was approximately $10.1 million and $9.8 million, respectively, and 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 $5.0 million, $14.7 million, $5.1 million and $13.1 million for the three and nine months ended September 30, 2020 and 2019, 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 September 30, 2020.

Year	Maturity of Fixed Lease Payments (in thousands)
Remainder of 2020	$	92,565
2021	$	362,825
2022	$	327,365
2023	$	284,041
2024	$	240,067
Thereafter	$	911,977

Lessee Leases

The Company has operating leases in which it is the lessee for ground leases and its corporate office lease. These leases have remaining lease terms of approximately 5.8 years to 49.1 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 September 30, 2020 and December 31, 2019.

Operating Lease Term and Discount Rate	September 30, 2020		December 31, 2019
Weighted average remaining lease term (years)	28.9		36.0
Weighted average discount rate	6.8	%	7.1	%

The following table summarizes the operating lease cost recognized during the three and nine months ended September 30, 2020 and 2019 included in the Company’s Consolidated Statements of Operations.

	Three months ended September 30,				Nine months ended September 30,
Operating Lease Cost (in thousands)	2020		2019		2020		2019
Operating lease cost included in property expense attributable to ground leases	$	345	$	331	$	1,007	$	993
Operating lease cost included in general and administrative expense attributable to corporate office lease	424		266		1,165		799
Total operating lease cost	$	769	$	597	$	2,172	$	1,792

The following table summarizes supplemental cash flow information related to operating leases recognized during the nine months ended September 30, 2020 and 2019 in the Company’s Consolidated Statements of Cash Flows.

	Nine months ended September 30,
Operating Leases (in thousands)	2020		2019
Cash paid for amounts included in the measurement of lease liabilities (operating cash flows)	$	1,728	$	1,711
Right-of-use assets obtained in exchange for new lease liabilities	$	7,718	$	—

The following table summarizes the maturity of operating lease liabilities under the Company’s ground leases and corporate office lease as of September 30, 2020.

Year	Maturity of Operating Lease Liabilities(1) (in thousands)
Remainder of 2020	$	606
2021	2,222
2022	3,100
2023	3,153
2024	3,196
Thereafter	59,245
Total lease payments	71,522
Less: Imputed interest	(45,108)
Present value of operating lease liabilities	$	26,414

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

10. Earnings Per Share

During the three and nine months ended September 30, 2020 and 2019, there were 189,202, 186,956, 220,284 and 218,231, respectively, of unvested restricted shares of common stock on a weighted average basis that were considered participating securities.

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The following table reconciles the numerators and denominators in the computation of basic and diluted earnings per common share for the three and nine months ended September 30, 2020 and 2019.

	Three months ended September 30,				Nine months ended September 30,
Earnings Per Share (in thousands, except per share data)	2020		2019		2020		2019
Numerator
Net income attributable to common stockholders	$	22,386	$	9,533	$	102,021	$	27,734
Denominator
Weighted average common shares outstanding — basic	148,997		127,272		148,412		122,460
Effect of dilutive securities(1)
Share-based compensation	675		178		375		254
Shares issuable under forward sales agreements	233		19		78		6
Weighted average common shares outstanding — diluted	149,905		127,469		148,865		122,720
Net income per share — basic and diluted
Net income per share attributable to common stockholders — basic	$	0.15	$	0.07	$	0.69	$	0.23
Net income per share attributable to common stockholders — diluted	$	0.15	$	0.07	$	0.69	$	0.23

(1)During the three and nine months ended September 30, 2020 and 2019, there were 189, 187, 220 and 218, unvested shares of restricted common stock, respectively, on a weighted average basis 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 $3.0 million as of September 30, 2020 related to construction projects and certain other agreements.

12. Subsequent Events

The following non-recognized subsequent events were noted.

Subsequent to September 30, 2020, the Company acquired nine buildings with approximately 3.7 million square feet for an aggregate contractual purchase price of approximately $256.5 million. The Company has not finalized the acquisition accounting, and therefore is not able to provide the disclosures otherwise required by GAAP, for these acquisitions.

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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, 2019, as updated elsewhere in this report, including those set forth under the headings “Business,” “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations;”

•the potential adverse effect of the ongoing 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;

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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:

We define “GAAP” as generally accepted accounting principles in the United States.

We define “total annualized base rental revenue” as the contractual monthly base rent as of September 30, 2020 (which differs from rent calculated in accordance with GAAP) multiplied by 12. If a tenant is in a free rent period as of September 30, 2020, the total annualized base rental revenue is calculated based on the first contractual monthly base rent amount multiplied by 12.

We define “occupancy rate” as 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.

We define the “Value Add Portfolio” as 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.

We define “Stabilization” for properties under development or being redeveloped as 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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We define the “Operating Portfolio” as 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.

We define a “Comparable Lease” as 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.

We define “SL Rent Change” as 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.

We define “Cash Rent Change” as 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.

We define “New Lease” as any 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.

We define “Renewal Lease” as 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 REIT focused on the acquisition, ownership, and operation of single-tenant, 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 qualify 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.

Factors That May Influence Future Results of Operations

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

COVID-19 Pandemic

Since March 2020, the COVID-19 pandemic has severely harmed global economic activity and caused significant volatility and negative pressure in financial markets. The global impact of the pandemic continues to evolve and many countries, including the United States, continue to react by instituting quarantines, mandating business and school closures and restricting travel. As a result, the COVID-19 pandemic is negatively impacting almost every industry, including the real estate industry and the industries of our tenants, directly or indirectly. The rapid development and fluidity of the COVID-19 pandemic precludes any prediction as to the ultimate adverse impact the pandemic may have on our business, financial condition, results of operations and cash flows.

While we did not incur significant disruptions from the COVID-19 pandemic during the nine months ended September 30, 2020, a number of our tenants requested rent deferral or rent abatement as a result of the pandemic. We entered into a limited number of rent deferral agreements during the three and nine months ended September 30, 2020, which resulted in approximately $0.4 million and $1.9 million of rent deferrals during the three and nine months ended September 30, 2020, respectively. We 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.

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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 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. 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 COVID-19 pandemic, the effectiveness of policies introduced to neutralize the disease, and the impact of those policies on economic activity. In June, the National Bureau of Economic Research announced the United States entered into a recession in February 2020. In the third quarter, economic measurements suggest that the U.S. economy may be starting to recover. The ultimate shape of the recovery will depend on many factors, including the length and severity of the COVID-19 pandemic. While there has been a negative impact to our tenants, we believe we will benefit from having a well-diversified portfolio across industry, market, and lease term. Additionally, we strongly believe the current economic environment is likely to curb new industrial supply in the near term and to accelerate a number of trends that positively impact industrial demand.

The U.S. federal and state governments, as well as the Federal Reserve, responded to the profoundly uncertain economic outlook with a series of policies to ease the economic burden of COVID-19 closures on businesses and individuals. The major U.S. congressional policy action known as the Coronavirus, Aid, Relief and Economic Security Act, or the CARES Act, allocated $2 trillion in federal aid to specific industries, small businesses and individuals. The Federal Reserve also took major actions including the completion of two emergency federal funds rate cuts in March 2020 to a range between 0% to 0.25%, adding liquidity to the bond market, establishing new lending facilities, and expanding its bond buying program to include mortgage backed securities, investment grade corporate debt, and high yield corporate ETFs. While we expect supportive fiscal and monetary policy to continue, the timing and the magnitude of further fiscal support will be likely driven by the outcome of the 2020 elections.

The current economic circumstances, while challenging, will provide an opportunity to demonstrate the diversification of our portfolio. Specifically, our existing portfolio should benefit from competitive rental rates and strong occupancy. Furthermore, we believe certain characteristics of our business should position us well in an uncertain environment, including the fact that we have a highly diversified portfolio, minimal floating rate debt exposure (taking into account our hedging activities), strong liquidity, strong access to capital, and that many of our competitors for the assets we purchase tend to be smaller local and regional investors who are likely to be more heavily impacted by interest rates and availability of capital.

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

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

•the increasing attractiveness of the United States as a manufacturing and distribution location because of the size of the U.S. consumer market, an increase in overseas labor costs, a desire for greater supply chain resilience and redundancy 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. We expect a near-term reduction in national industrial demand, in the aggregate, brought on by the pandemic. Certain industries and geographies are expected to be more heavily impacted. However, the acceleration in e-commerce brought on by the COVID-19 pandemic

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and the policy response to the pandemic has helped industrial space demand remain strong as the national availability rate remains stable. We believe 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, but it is likely to decelerate in the near-term. We have limited exposure to many of the most active development markets. 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. As of September 30, 2020, our Operating Portfolio was approximately 96.9% leased and our SL Rent Change on New Leases and Renewal Leases in our Operating Portfolio together grew approximately 4.7% and 7.4% during the three and nine months ended September 30, 2020, respectively. Our Cash Rent Change on New Leases and Renewal Leases in our Operating Portfolio together grew approximately 1.3% and 1.7% during the three and nine months ended September 30, 2020.

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.

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The following table summarizes our Operating Portfolio leases that commenced during the three and nine months ended September 30, 2020. Certain leases contain rental concessions; any such rental concessions 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 September 30, 2020
New Leases	1,576,265	$	4.00	$	3.97	$	1.24	(4.7)	%	(5.2)	%	4.4	$	1.10
Renewal Leases	4,006,340	$	3.86	$	4.01	$	0.60	3.1	%	7.9	%	6.2	$	0.40
Total/weighted average	5,582,605	$	3.90	$	4.00	$	0.79	1.3	%	4.7	%	5.7	$	0.60
Nine months ended September 30, 2020
New Leases	2,448,688	$	3.99	$	4.09	$	1.94	(4.9)	%	(1.2)	%	5.8	$	0.89
Renewal Leases	7,629,286	$	4.13	$	4.31	$	0.76	3.6	%	9.8	%	5.7	$	0.38
Total/weighted average	10,077,974	$	4.10	$	4.26	$	1.04	1.7	%	7.4	%	5.7	$	0.50

(1)We define Total Costs as 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)We define weighted average lease term as the contractual lease term in years, assuming that tenants exercise no 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 nine months ended September 30, 2020, leases commenced totaling 82,420 and 564,358 square feet, respectively, related to the Value Add Portfolio and are excluded from the Operating Portfolio statistics above.

Property Operating Expenses

Our property operating expenses generally consist of utilities, real estate taxes, management fees, insurance, and site repair and maintenance costs. 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. The terms of those leases vary and on some occasions we may absorb certain building related expenses of our tenants. In our modified gross leases, we are responsible for some building related expenses during the lease term, but the cost of most of the expenses is passed through to the tenant for reimbursement to us. In our gross leases, we are responsible for all costs 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 will impact our results of operations and is affected by economic and competitive conditions in our markets and by the desirability of our individual buildings. Leases that comprise approximately 9.3% of our annualized base rental revenue will expire during the period from October 1, 2020 to September 30, 2021, 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 generally be the same as the rates under existing leases expiring during the period October 1, 2020 to September 30, 2021, thereby resulting in approximately the same revenue from the same space.

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The following table summarizes lease expirations for leases in place as of September 30, 2020, plus available space, for each of the ten calendar years beginning with 2020 and thereafter in our portfolio. The information in the table assumes that tenants exercise no renewal options and no 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	—	3,369,218	—		—		—
Month-to-month leases	6	586,591	0.7	%	$	2,725	0.7	%
Remainder of 2020	5	1,464,980	1.6	%	8,861		2.2	%
2021	59	9,299,999	10.5	%	41,847		10.4	%
2022	78	9,434,716	10.6	%	41,881		10.4	%
2023	82	12,195,437	13.7	%	49,848		12.4	%
2024	64	10,206,756	11.5	%	46,104		11.5	%
2025	57	9,293,133	10.4	%	41,176		10.3	%
2026	52	9,230,178	10.4	%	41,727		10.4	%
2027	25	3,427,788	3.9	%	17,347		4.3	%
2028	25	4,631,094	5.2	%	20,436		5.1	%
2029	23	5,190,476	5.8	%	23,347		5.8	%
Thereafter	55	13,971,702	15.7	%	66,083		16.5	%
Total	531	92,302,068	100.0	%	$	401,382	100.0	%

Portfolio Summary

The following table summarizes information relating to diversification by building type in our portfolio as of September 30, 2020.

		Square Footage					Annualized Base Rental Revenue
Building Type	Number of Buildings	Amount	%		Occupancy Rate		Amount (in thousands)		%
Warehouse/Distribution	382	83,645,946	90.6	%	96.8	%	$	359,659	89.6	%
Light Manufacturing	70	7,902,777	8.6	%	97.5	%	38,498		9.6	%
Total Operating Portfolio/weighted average	452	91,548,723	99.2	%	96.9	%	$	398,157	99.2	%
Value Add/Other	2	321,030	0.3	%	14.0	%	345		0.1	%
Flex/Office	8	432,315	0.5	%	48.9	%	2,880		0.7	%
Total portfolio/weighted average	462	92,302,068	100.0	%	96.3	%	$	401,382	100.0	%

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Portfolio Acquisitions

The following table summarizes our acquisitions during the three and nine months ended September 30, 2020.

Market (1)	Date Acquired	Square Feet	Number of Buildings	Purchase Price (in thousands)
Detroit, MI	January 10, 2020	491,049	1	$	29,543
Rochester, NY	January 10, 2020	124,850	1	8,565
Minneapolis/St Paul, MN	February 6, 2020	139,875	1	10,460
Sacramento, CA	February 6, 2020	160,534	1	18,468
Richmond, VA	February 6, 2020	78,128	1	5,481
Milwaukee/Madison, WI	February 7, 2020	81,230	1	7,219
Detroit, MI	February 11, 2020	311,123	1	23,141
Philadelphia, PA	March 9, 2020	78,000	1	6,571
Tulsa, OK	March 9, 2020	134,600	1	9,895
Three months ended March 31, 2020		1,599,389	9	119,343
Sacramento, CA	June 11, 2020	54,463	1	5,730
Chicago, IL	June 29, 2020	67,817	1	6,184
Three months ended June 30, 2020		122,280	2	$	11,914
Philadelphia, PA	August 31, 2020	112,294	1	8,427
Pittsburgh, PA	September 3, 2020	125,000	1	15,580
Pittsburgh, PA	September 24, 2020	66,387	1	6,685
Charlotte, NC	September 28, 2020	50,000	1	5,729
Cleveland, OH	September 29, 2020	276,000	1	28,261
Three months ended September 30, 2020		629,681	5	64,682
Nine months ended September 30, 2020		2,351,350	16	$	195,939

(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.

Portfolio Dispositions

During the nine months ended September 30, 2020, we sold five buildings comprised of approximately 1.7 million rentable square feet with a net book value of approximately $64.4 million to third parties. Net proceeds from the sales of rental property were approximately $121.3 million and we recognized the full gain on the sales of rental property, net, of approximately $56.9 million for the nine months ended September 30, 2020.

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Geographic Diversification

The following table summarizes information about the 20 largest markets in our portfolio based on total annualized base rental revenue as of September 30, 2020.

Top 20 Markets (1)	% of Total Annualized Base Rental Revenue
Philadelphia, PA	9.3	%
Chicago, IL	6.8	%
Greenville/Spartanburg, SC	5.8	%
Pittsburgh, PA	4.7	%
Detroit, MI	4.5	%
Milwaukee/Madison, WI	4.3	%
Minneapolis/St Paul, MN	4.0	%
Houston, TX	3.5	%
Charlotte, NC	2.8	%
Indianapolis, IN	2.5	%
Cincinnati/Dayton, OH	2.5	%
Boston, MA	2.5	%
West Michigan, MI	2.4	%
Columbus, OH	2.3	%
El Paso, TX	2.2	%
Columbia, SC	1.8	%
Westchester/So Connecticut, CT/NY	1.7	%
Cleveland, OH	1.7	%
Raleigh/Durham, NC	1.6	%
Kansas City, MO	1.5	%
Total	68.4	%

(1) As defined by CoStar.

Industry Diversification

The following table summarizes information about the 20 largest tenant industries in our portfolio based on total annualized base rental revenue as of September 30, 2020.

Top 20 Tenant Industries (1)	% of Total Annualized Base Rental Revenue
Auto Components	11.9	%
Air Freight & Logistics	7.9	%
Commercial Services & Supplies	7.2	%
Containers & Packaging	7.2	%
Household Durables	5.0	%
Machinery	5.0	%
Building Products	4.6	%
Food Products	4.5	%
Internet & Direct Mkt Retail	4.3	%
Media	3.9	%
Food & Staples Retailing	3.6	%
Electrical Equipment	3.1	%
Beverages	2.8	%
Specialty Retail	2.4	%
Electronic Equip, Instruments	2.2	%
Chemicals	2.0	%
Textiles, Apparel, Luxury Good	1.9	%
Household Products	1.8	%
Metals & Mining	1.7	%
Oil, Gas & Consumable Fuels	1.4	%
Total	84.4	%

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

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Tenant Diversification

The following table summarizes information about the 20 largest tenants in our portfolio based on total annualized base rental revenue as of September 30, 2020.

Top 20 Tenants (1)	Number of Leases	% of Total Annualized Base Rental Revenue
Amazon	5	2.9	%
General Service Administration	1	1.8	%
XPO Logistics, Inc.	5	1.3	%
TriMas Corporation	4	1.0	%
Penguin Random House LLC	1	0.9	%
DS Smith North America	2	0.9	%
American Tire Distributors Inc	5	0.9	%
Ford Motor Company	1	0.8	%
Carolina Beverage Group	2	0.8	%
Hachette Book Group, Inc.	1	0.8	%
Yanfeng US Automotive Interior	2	0.8	%
Packaging Corp of America	5	0.8	%
FedEx Corporation	3	0.8	%
Schneider Electric USA, Inc.	3	0.8	%
Kenco Logistic Services, LLC	2	0.7	%
Perrigo Company	2	0.7	%
Generation Brands	1	0.7	%
DHL Supply Chain	4	0.7	%
R.R. Donnelley & Sons Company	5	0.7	%
WestRock Company	5	0.7	%
Total	59	19.5	%

(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, 2019, for a discussion of our critical accounting policies and estimates.

Results of Operations

The following discussion of our results of our same store (as defined below) net operating income (“NOI”) should be read in conjunction with our consolidated financial statements. 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 revenue associated with one-time tenant reimbursements of capital expenditures. Same store properties exclude Operating Portfolio properties with expansions placed into service after December 31, 2018. On September 30, 2020, we owned 367 industrial buildings consisting of approximately 73.0 million square feet, which represents approximately 79.1% of our total portfolio, that are considered our same store portfolio in the analysis below. Same store occupancy decreased approximately 0.1% to 96.2% as of September 30, 2020 compared to 96.3% as of September 30, 2019.

Comparison of the three months ended September 30, 2020 to the three months ended September 30, 2019

The following table summarizes selected operating information for our same store portfolio and our total portfolio for the three months ended September 30, 2020 and 2019 (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 September 30, 2020 and 2019 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, 2018 and our flex/office buildings and Value Add Portfolio.

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	Same Store Portfolio								Acquisitions/Dispositions				Other				Total Portfolio
	Three months ended September 30,				Change				Three months ended September 30,				Three months ended September 30,				Three months ended September 30,				Change
	2020		2019		$		%		2020		2019		2020		2019		2020		2019		$		%
Revenue
Operating revenue
Rental income	$	90,004	$	89,678	$	326	0.4	%	$	25,192	$	10,958	$	2,051	$	1,658	$	117,247	$	102,294	$	14,953	14.6	%
Other income	33		64		(31)		(48.4)	%	15		63		—		—		48		127		(79)		(62.2)	%
Total operating revenue	90,037		89,742		295		0.3	%	25,207		11,021		2,051		1,658		117,295		102,421		14,874		14.5	%
Expenses
Property	15,772		15,376		396		2.6	%	3,979		1,973		1,066		808		20,817		18,157		2,660		14.6	%
Net operating income (1)	$	74,265	$	74,366	$	(101)	(0.1)	%	$	21,228	$	9,048	$	985	$	850	96,478		84,264		12,214		14.5	%
Other expenses
General and administrative																	9,537		8,924		613		6.9	%
Depreciation and amortization																	53,921		46,908		7,013		15.0	%
Loss on impairments																	3,172		4,413		(1,241)		(28.1)	%
Other expenses																	436		458		(22)		(4.8)	%
Total other expenses																	67,066		60,703		6,363		10.5	%
Total expenses																	87,883		78,860		9,023		11.4	%
Other income (expense)
Interest and other income																	165		12		153		1,275.0	%
Interest expense																	(15,928)		(14,053)		(1,875)		13.3	%
Gain on involuntary conversion																	1,500		—		1,500		100.0	%
Gain on the sales of rental property, net																	9,060		1,670		7,390		442.5	%
Total other income (expense)																	(5,203)		(12,371)		7,168		(57.9)	%
Net income																	$	24,209	$	11,190	$	13,019	116.3	%

(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 $13.0 million, or 116.3%, to $24.2 million for the three months ended September 30, 2020, compared to $11.2 million for the three months ended September 30, 2019.

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 $0.3 million, or 0.4%, to $90.0 million for the three months ended September 30, 2020 compared to $89.7 million for the three months ended September 30, 2019.

Same store lease income decreased by $1.0 million, or 1.2%, to $75.6 million for the three months ended September 30, 2020 compared to $76.6 million for the three months ended September 30, 2019. The decrease is partially attributable to the reduction of rental income of approximately $1.7 million for certain leases in which we determined that the future collectability 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 tenants. The decrease was also attributable to the reduction of base rent of approximately $1.5 million from tenant vacancies and downsizing, as well as a net increase in the amortization of net above market leases of approximately $0.4 million. These decreases were partially offset by an increase in rental income of approximately $2.6 million due to the execution of new leases and lease renewals with existing tenants.

Same store other billings increased by $0.8 million, or 5.9%, to $13.9 million for the three months ended September 30, 2020 compared to $13.1 million for the three months ended September 30, 2019. The increase was attributable to an increase of approximately $0.5 million related to other expense reimbursements due to new leases and an increase in real estate taxes levied by the taxing authority of approximately $0.3 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 property operating expenses increased by $0.4 million, or 2.6%, to $15.8 million for the three months ended September 30, 2020 compared to $15.4 million for the three months ended September 30, 2019. This increase was primarily related to an increase in real estate taxes levied by the taxing authority of approximately $0.9 million, as well as an increase of $0.1 million related to insurance expense. These increases were partially offset by an decrease in repairs and maintenance expense and utilities expense of approximately $0.6 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, 2018, we acquired 80 buildings consisting of approximately 17.2 million square feet (excluding five buildings that were included in the Value Add Portfolio at September 30, 2020 or transferred from the Value Add Portfolio to the Operating Portfolio after December 31, 2018), and sold 14 buildings and two land parcels consisting of approximately 3.3 million square feet. For the three months ended September 30, 2020 and 2019, the buildings acquired after December 31, 2018 contributed approximately $21.2 million and $8.5 million to NOI, respectively. For the three months ended September 30, 2020 and 2019, the buildings sold after December 31, 2018 contributed approximately $20,000 and $0.5 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

Our other assets include our flex/office buildings, Value Add Portfolio, and Operating Portfolio buildings with expansions placed in service or transferred from the Value Add Portfolio to the Operating Portfolio after December 31, 2018. 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.

At September 30, 2020, we owned eight flex/office buildings consisting of approximately 0.4 million square feet, two buildings in our Value Add Portfolio consisting of approximately 0.3 million square feet, and five buildings consisting of approximately 1.4 million square feet that were Operating Portfolio buildings with expansions placed in service or transferred from the Value Add Portfolio to the Operating Portfolio after December 31, 2018. These buildings contributed approximately $1.4 million and $0.9 million to NOI for the three months ended September 30, 2020 and 2019, respectively. Additionally, there was approximately $(0.4) million and $15,000 of termination, solar, and other income adjustments from certain buildings in our same store portfolio for the three months ended September 30, 2020 and 2019, respectively.

Total Other Expenses

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

Total other expenses increased $6.4 million, or 10.5%, for the three months ended September 30, 2020 to $67.1 million compared to $60.7 million for the three months ended September 30, 2019. The increase is primarily a result of an increase in depreciation and amortization of approximately $7.0 million due to an increase in the depreciable asset base as a result of net acquisitions. Additionally, general and administrative expenses increased by approximately $0.6 million primarily due to increases in compensation and other payroll costs. These increases were partially offset by a decrease in loss on impairments of approximately $1.2 million as discussed in Note 3 of the accompanying Notes to Consolidated Financial Statements.

Total Other Income (Expense)

Total other income (expense) consists of interest and other income, interest expense, gain on involuntary conversion, 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 net other expense decreased $7.2 million, or 57.9%, for the three months ended September 30, 2020 to $5.2 million compared $12.4 million for the three months ended September 30, 2019. This decrease was primarily a result of an increase in the gain on the sales of rental property, net of approximately $7.4 million and a gain on involuntary conversion of approximately $1.5 million related to an eminent domain taking of a portion of a parcel of land that occurred during the three months ended September 30, 2020. Additionally, there was an increase of approximately $0.2 million in interest and other income due to an increased cash and cash equivalents balance during the three months ended September 30, 2020 compared to the three months ended September 30, 2019. These increases in other income were partially offset by an increase in interest expense of approximately $1.9 million which was primarily attributable to the funding of unsecured term loans on March 25, 2020 and December 18, 2019.

Comparison of the nine months ended September 30, 2020 to the nine months ended September 30, 2019

The following table summarizes selected operating information for our same store portfolio and our total portfolio for the nine months ended September 30, 2020 and 2019 (dollars in thousands). This table includes a reconciliation from our same store portfolio to our total portfolio by also providing information for the nine months ended September 30, 2020 and 2019 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, 2018 and our flex/office buildings and Value Add Portfolio.

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	Same Store Portfolio								Acquisitions/Dispositions				Other				Total Portfolio
	Nine months ended September 30,				Change				Nine months ended September 30,				Nine months ended September 30,				Nine months ended September 30,				Change
	2020		2019		$		%		2020		2019		2020		2019		2020		2019		$		%
Revenue
Operating revenue
Rental income	$	270,324	$	268,675	$	1,649	0.6	%	$	74,683	$	20,621	$	8,050	$	4,975	$	353,057	$	294,271	$	58,786	20.0	%
Other income	304		396		(92)		(23.2)	%	60		102		39		—		403		498		(95)		(19.1)	%
Total operating revenue	270,628		269,071		1,557		0.6	%	74,743		20,723		8,089		4,975		353,460		294,769		58,691		19.9	%
Expenses
Property	47,976		47,803		173		0.4	%	11,688		4,234		3,492		2,586		63,156		54,623		8,533		15.6	%
Net operating income (1)	$	222,652	$	221,268	$	1,384	0.6	%	$	63,055	$	16,489	$	4,597	$	2,389	290,304		240,146		50,158		20.9	%
Other expenses
General and administrative																	29,316		26,723		2,593		9.7	%
Depreciation and amortization																	160,215		133,844		26,371		19.7	%
Loss on impairments																	3,172		9,757		(6,585)		(67.5)	%
Other expenses																	1,500		1,284		216		16.8	%
Total other expenses																	194,203		171,608		22,595		13.2	%
Total expenses																	257,359		226,231		31,128		13.8	%
Other income (expense)
Interest and other income																	400		30		370		1,233.3	%
Interest expense																	(46,125)		(39,080)		(7,045)		18.0	%
Loss on extinguishment of debt																	(834)		—		(834)		100.0	%
Gain on involuntary conversion																	2,157		—		2,157		100.0	%
Gain on the sales of rental property, net																	56,864		3,261		53,603		1,643.8	%
Total other income (expense)																	12,462		(35,789)		48,251		(134.8)	%
Net income																	$	108,563	$	32,749	$	75,814	231.5	%

(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 $75.8 million, or 231.5%, to $108.6 million for the nine months ended September 30, 2020 compared to $32.7 million for the nine months ended September 30, 2019.

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 $1.6 million, or 0.6%, to $270.3 million for the nine months ended September 30, 2020 compared to $268.7 million for the nine months ended September 30, 2019.

Same store lease income increased by $0.5 million, or 0.2%, to $228.6 million for the nine months ended September 30, 2020 compared to $228.1 million for the nine months ended September 30, 2019. Approximately $7.2 million of the increase was attributable to rental increases due to the execution of new leases and lease renewals with existing tenants. This increase was partially offset by a reduction of rental income of approximately $3.4 million for certain leases in which we determined that the future collectability 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 tenants. Rental income also decreased due to the reduction of base rent of approximately $2.9 million from tenant vacancies and downsizing, as well as a net decrease in the amortization of net above market leases of approximately $0.4 million.

Same store other billings increased by $0.6 million, or 1.6%, to $41.2 million for the nine months ended September 30, 2020 compared to $40.6 million for the nine months ended September 30, 2019. The increase was primarily attributable to an increase in operating expense and insurance expense reimbursements of approximately $0.6 million due to new leases.

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 $0.2 million or 0.4% to $48.0 million for the nine months ended September 30, 2020 compared to $47.8 million for the nine months ended September 30, 2019. This increase was primarily related to an increase in real estate taxes levied by the taxing authority of approximately $1.1 million, as well as an increase in repairs and maintenance expense and insurance expense of approximately $0.3 million and $0.1 million, respectively. These increases were partially offset by a decrease in snow removal expense and utilities expense of approximately $1.0 million and $0.3 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, 2018, we acquired 80 buildings consisting of approximately 17.2 million square feet (excluding five buildings that were included in the Value Add Portfolio at September 30, 2020 or transferred from the Value Add Portfolio to the Operating Portfolio after December 31, 2018), and sold 14 buildings and two land parcels consisting of approximately 3.3 million square feet. For the nine months ended September 30, 2020 and September 30, 2019, the buildings acquired after December 31, 2018 contributed approximately $62.7 million and $13.4 million to NOI, respectively. For the nine months ended September 30, 2020 and September 30, 2019, the buildings sold after December 31, 2018 contributed approximately $0.4 million and $3.1 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

Our other assets include our flex/office buildings, Value Add Portfolio, and Operating Portfolio buildings with expansions placed in service or transferred from the Value Add Portfolio to the Operating Portfolio after December 31, 2018. 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.

At September 30, 2020, we owned eight flex/office buildings consisting of approximately 0.4 million square feet, two buildings in our Value Add Portfolio consisting of approximately 0.3 million square feet, and five buildings consisting of approximately 1.4 million square feet that were Operating Portfolio buildings with expansions placed in service or transferred from the Value Add Portfolio to the Operating Portfolio after December 31, 2018. These buildings contributed approximately $4.2 million and $2.3 million to NOI for the nine months ended September 30, 2020 and September 30, 2019, respectively. Additionally, there was $0.4 million and $0.1 million of termination, solar, and other income adjustments from certain buildings in our same store portfolio for the nine months ended September 30, 2020 and September 30, 2019, respectively.

Total Other Expenses

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

Total other expenses increased $22.6 million, or 13.2%, to $194.2 million for the nine months ended September 30, 2020 compared to $171.6 million for the nine months ended September 30, 2019. This is primarily a result of an increase in depreciation and amortization of approximately $26.4 million as a result of net acquisitions that increased the depreciable asset base, as well as an increase of approximately $2.6 million in general and administrative expense primarily due to increases in compensation and other payroll costs. These increases were partially offset by a reduction in loss on impairments of approximately $6.6 million as discussed in Note 3 of the accompanying Notes to Consolidated Financial Statements.

Total Other Income (Expense)

Total other income (expense) consists of interest and other income, interest expense, loss on extinguishment of debt, gain on involuntary conversion, 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 income (expense) increased $48.3 million, or 134.8%, to a total net other income of $12.5 million for the nine months ended September 30, 2020 compared to $35.8 million total net other expense for the nine months ended September 30, 2019. This increase is primarily the result of an increase in gain on the sales of rental property, net of approximately $53.6 million and a gain on involuntary conversion of approximately $2.2 million related to an eminent domain taking of a portion of a parcel of land that occurred during the nine months ended September 30, 2020. Additionally, there was an increase of approximately $0.4 million in interest and other income due to an increased cash and cash equivalents balance during the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019. These increases were partially offset by an increase in interest expense of approximately $7.0 million which was primarily attributable to the funding of unsecured term loans on March 25, 2020, December 18, 2019, and July 25, 2019. Additionally, we recognized a loss on extinguishment of debt of approximately $0.8 million during the nine months ended September 30, 2020 that was primarily related to the refinance of the Unsecured Term Loan B and the Unsecured Term Loan C on April 17, 2020, as discussed in Note 4 of the accompanying Notes to Consolidated Financial Statements.

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.

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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.

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 September 30,				Nine months ended September 30,
Reconciliation of Net Income to FFO (in thousands)	2020		2019		2020		2019
Net income	$	24,209	$	11,190	$	108,563	$	32,749
Rental property depreciation and amortization	53,853		46,834		160,007		133,622
Loss on impairments	3,172		4,413		3,172		9,757
Gain on the sales of rental property, net	(9,060)		(1,670)		(56,864)		(3,261)
FFO	72,174		60,767		214,878		172,867
Preferred stock dividends	(1,289)		(1,289)		(3,867)		(3,867)
Amount allocated to restricted shares of common stock and unvested units	(184)		(218)		(590)		(697)
FFO attributable to common stockholders and unit holders	$	70,701	$	59,260	$	210,421	$	168,303

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.

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

	Three months ended September 30,				Nine months ended September 30,
Reconciliation of Net Income to NOI (in thousands)	2020		2019		2020		2019
Net income	$	24,209	$	11,190	$	108,563	$	32,749
General and administrative	9,537		8,924		29,316		26,723
Transaction costs	23		94		82		247
Depreciation and amortization	53,921		46,908		160,215		133,844
Interest and other income	(165)		(12)		(400)		(30)
Interest expense	15,928		14,053		46,125		39,080
Loss on impairments	3,172		4,413		3,172		9,757
Gain on involuntary conversion	(1,500)		—		(2,157)		—
Loss on extinguishment of debt	—		—		834		—
Other expenses	413		364		1,418		1,037
Gain on the sales of rental property, net	(9,060)		(1,670)		(56,864)		(3,261)
Net operating income	$	96,478	$	84,264	$	290,304	$	240,146

Cash Flows

Comparison of the nine months ended September 30, 2020 to the nine months ended September 30, 2019

The following table summarizes our cash flows for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019.

	Nine months ended September 30,				Change
Cash Flows (dollars in thousands)	2020		2019		$		%
Net cash provided by operating activities	$	224,131	$	174,930	$	49,201	28.1	%
Net cash used in investing activities	$	114,041	$	765,675	$	(651,634)	(85.1)	%
Net cash provided by (used in) financing activities	$	(47,194)	$	577,476	$	(624,670)	(108.2)	%

Net cash provided by operating activities increased $49.2 million to $224.1 million for the nine months ended September 30, 2020 compared to $174.9 million for the nine months ended September 30, 2019. The increase was primarily attributable to incremental operating cash flows from property acquisitions completed after September 30, 2019, and operating performance at existing properties. These increases were partially offset by the loss of cash flows from property dispositions completed after September 30, 2019 and fluctuations in working capital due to timing of payments and rental receipts.

Net cash used in investing activities decreased $651.6 million to $114.0 million for the nine months ended September 30, 2020 compared to $765.7 million for the nine months ended September 30, 2019. The decrease was primarily attributable to an increase in proceeds from sales of rental property, net related to the disposition of five buildings during the nine months ended September 30, 2020 for net proceeds of approximately $121.3 million, compared to the nine months ended September 30, 2019 where we sold six buildings and two land parcels for net proceeds of approximately $23.7 million. The decrease was also attributable to the acquisition of 16 buildings for a total cash consideration of approximately $195.4 million for the nine months ended September 30, 2020 compared to the acquisition of 46 buildings for a total cash consideration of approximately $748.0 million for the nine months ended September 30, 2019.

Net cash provided by (used in) financing activities decreased $624.7 million to $(47.2) million for the nine months ended September 30, 2020 compared to $577.5 million for the nine months ended September 30, 2019. The decrease in net cash provided (used in) by financing activities is primarily attributable to a decrease of net proceeds from the sales of common stock of approximately $395.8 million, an increase of net cash outflow on our unsecured credit facility of approximately $123.5 million and our unsecured term loans of $75.0 million, and an increase of approximately $29.0 million in dividends paid during the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019.

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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 is primarily rental income, expense recoveries from tenants, and other income from operations and is our principal source of funds that we use to pay operating expenses, debt service, recurring capital expenditures and the distributions required to maintain our REIT qualification. We look to the capital markets (common equity, preferred equity, and debt) to primarily fund our acquisition activity. We seek to increase cash flows from our properties by maintaining quality standards for our buildings that promote high occupancy rates and permit increases in rental rates while reducing tenant turnover and controlling operating expenses. We believe that our revenue, together with proceeds from building sales and debt and equity financings, will continue to provide funds for our short-term and medium-term liquidity needs.

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

Our long-term liquidity needs, in addition to recurring short-term liquidity needs as discussed above, consist primarily of funds necessary to pay for acquisitions, non-recurring capital expenditures, and scheduled debt maturities. We intend to satisfy our long-term liquidity needs through cash flow from operations, 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.

In response to the COVID-19 pandemic, we have worked to ensure that we maintain adequate liquidity. On April 17, 2020 we refinanced the Unsecured Term Loan B and the Unsecured Term Loan C, as discussed in “Indebtedness Outstanding” below. As of September 30, 2020, we had total immediate liquidity of approximately $567.1 million, comprised of $70.1 million of cash and cash equivalents and $497.0 million of immediate availability on our unsecured credit facility. When incorporating the remaining undrawn balance available on our unsecured credit facility and the approximately $132.5 million of forward equity proceeds available to us at our option through January 13, 2021, our total liquidity as of September 30, 2020 was approximately $699.6 million, with a material amount of that liquidity comprised of cash and cash equivalents.

In addition, we require funds for future dividends to be paid to our common and preferred stockholders and unit holders in the Operating Partnership. These distributions on our common stock are voluntary (at the discretion of our board of directors), to the extent we have satisfied distribution requirements in order to maintain our REIT status for federal income tax purposes, and may be reduced or stopped if needed to fund other liquidity requirements or for other reasons. The following table summarizes the dividends attributable to our outstanding common stock that had a record date during the nine months ended September 30, 2020.

Month Ended 2020	Declaration Date	Record Date	Per Share		Payment Date
September 30	July 9, 2020	September 30, 2020	$	0.12	October 15, 2020
August 31	July 9, 2020	August 31, 2020	0.12		September 15, 2020
July 31	July 9, 2020	July 31, 2020	0.12		August 17, 2020
June 30	April 9, 2020	June 30, 2020	0.12		July 15, 2020
May 31	April 9, 2020	May 29, 2020	0.12		June 15, 2020
April 30	April 9, 2020	April 30, 2020	0.12		May 15, 2020
March 31	January 8, 2020	March 31, 2020	0.12		April 15, 2020
February 29	January 8, 2020	February 28, 2020	0.12		March 16, 2020
January 31	January 8, 2020	January 31, 2020	0.12		February 18, 2020
Total			$	1.08

On October 9, 2020, our board of directors declared the common stock dividends for the months ending October 31, 2020, November 30, 2020, and December 31, 2020 at a monthly rate of $0.12 per share of common stock.

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During the nine months ended September 30, 2020, we declared quarterly cumulative dividends on the 6.875% Series C Cumulative Redeemable Preferred Stock (“Series C Preferred Stock”) at a rate equivalent to the fixed annual rate of $1.71875 per share. The following table summarizes the dividends on the Series C Preferred Stock during the nine months ended September 30, 2020.

Quarter Ended 2020	Declaration Date	Series C Preferred Stock Per Share		Payment Date
September 30	July 9, 2020	$	0.4296875	September 30, 2020
June 30	April 9, 2020	$	0.4296875	June 30, 2020
March 31	January 8, 2020	0.4296875		March 31, 2020
Total		$	1.2890625

On October 9, 2020, our board of directors declared the Series C Preferred Stock dividends for the quarter ending December 31, 2020 at a quarterly rate of $0.4296875 per share.

Indebtedness Outstanding

The following table summarizes certain information with respect to our indebtedness outstanding as of September 30, 2020

Loan	Principal Outstanding as of September 30, 2020 (in thousands)		Interest  Rate(1)(2)		Maturity Date	Prepayment Terms(3)
Unsecured credit facility:
Unsecured Credit Facility(4)	$	—	L + 0.90%		January 12, 2024	i
Total unsecured credit facility	—
Unsecured term loans:
Unsecured Term Loan A	150,000		3.38	%	March 31, 2022	i
Unsecured Term Loan D	150,000		2.85	%	January 4, 2023	i
Unsecured Term Loan G(5)	300,000		2.77	%	April 18, 2023	i
Unsecured Term Loan E	175,000		3.92	%	January 15, 2024	i
Unsecured Term Loan F	200,000		3.11	%	January 12, 2025	i
Total unsecured term loans	975,000
Less: Total unamortized deferred financing fees and debt issuance costs	(4,304)
Total carrying value unsecured term loans, net	970,696
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
Total unsecured notes	575,000
Less: Total unamortized deferred financing fees and debt issuance costs	(1,819)
Total carrying value unsecured notes, net	573,181
Mortgage notes (secured debt):
Wells Fargo Bank, National Association CMBS Loan	49,013		4.31	%	December 1, 2022	iii
Thrivent Financial for Lutherans	3,587		4.78	%	December 15, 2023	iv
Total mortgage notes	52,600
Add: Total unamortized fair market value premiums	31
Less: Total unamortized deferred financing fees and debt issuance costs	(266)
Total carrying value mortgage notes, net	52,365
Total / weighted average interest rate(6)	$	1,596,242	3.62	%

(1)Interest rate as of September 30, 2020. At September 30, 2020, the one-month LIBOR (“L”) was 0.14825%. 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, 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 1.0%, with the exception of the Unsecured Term Loan G which has a spread of 1.5% and is subject to a minimum rate for LIBOR of 0.25%. As of September 30, 2020, one-month LIBOR for the Unsecured Term Loans

45

A, D, E, F, and G was swapped to a fixed rate of 2.38%, 1.85%, 2.92%, 2.11%, and 1.17%, respectively. One-month LIBOR for the Unsecured Term Loan G will be swapped to a fixed rate of 0.28% effective March 19, 2021.

(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, however can be defeased; and (iv) pre-payable without penalty three months prior to the maturity date.

(4)The capacity of the unsecured credit facility is $500.0 million. The initial maturity date is January 15, 2023, which may be extended pursuant to two six-month extension options exercisable at 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.

(5)The initial maturity date is April 16, 2021, which may be extended pursuant to two one-year extension options exercisable at our discretion upon advance written notice. Exercise of each one-year 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.

(6)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.

The aggregate undrawn nominal commitments on the unsecured credit facility and unsecured term loans as of September 30, 2020 was approximately $497.0 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 September 30, 2020, we were in compliance with the applicable financial covenants.

On April 17, 2020, we entered into the $300.0 million Unsecured Term Loan G with Wells Fargo, National Association, as administrative agent on behalf of the various lenders under the agreement. In connection with execution of the Unsecured Term Loan G, the Unsecured Term Loan B and Unsecured Term Loan C were paid in full. As of September 30, 2020, the Unsecured Term Loan G bore an interest rate of LIBOR plus a spread of 1.5% based on our debt rating, as defined in the loan agreement, and subject to a minimum rate for LIBOR of 0.25%. The Unsecured Term Loan G matures on April 16, 2021, subject to two one-year extension options at our discretion, and subject to certain conditions (other than lender discretion) such as the absence of default and the payment of an extension fee. We intend to exercise both extension options. To exercise the extension options we are required pay a fee equal to (i) 0.15% of the outstanding amount on the effective day of the first extension period and (ii) 0.20% of the outstanding amount on the effective day of the second extension period. The Unsecured Term Loan G has an accordion feature that allows us to increase its borrowing capacity to $600.0 million, subject to the satisfaction of certain conditions and lender consents. The Company and certain wholly owned subsidiaries of the Operating Partnership are guarantors of the Unsecured Term Loan G. The agreement also contains financial and other covenants substantially similar to the covenants in our unsecured credit facility.

The following table summarizes our debt capital structure as of September 30, 2020.

Debt Capital Structure	September 30, 2020
Total principal outstanding (in thousands)	$	1,602,600
Weighted average duration (years)	3.6
% Secured debt	3.3		%
% Debt maturing next 12 months	—		%
Net Debt to Real Estate Cost Basis(1)	32.3		%

(1)We define Net Debt as our amounts outstanding under our unsecured credit facility, unsecured term loans, unsecured notes, and mortgage notes, less cash and cash equivalents. We define Real Estate Cost Basis as 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 building acquisition funding needs. We believe that our current balance sheet is in an adequate position at the date of this filing, despite possible volatility in the credit markets.

Our interest rate exposure as it relates to interest expense payments on our floating rate debt is managed through our 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

The following table summarizes our outstanding preferred stock issuances as of September 30, 2020.

Preferred Stock Issuances	Issuance Date	Number of Shares	Liquidation Value Per Share		Interest Rate
Series C Preferred Stock	March 17, 2016	3,000,000	$	25.00	6.875	%

Common Stock

The following table summarizes our at-the-market (“ATM”) common stock offering program as of September 30, 2020. We may from time to time sell common stock through sales agents under the program. There was no activity under the ATM common stock offering program during the three months ended September 30, 2020.

ATM Common Stock Offering Program	Date	Maximum Aggregate Offering Price (in thousands)		Aggregate Common Stock Available as of September 30, 2020 (in thousands)
2019 $600 million ATM	February 14, 2019	$	600,000	$	318,248

On January 13, 2020, we completed an underwritten public offering of an aggregate 10,062,500 shares of common stock at a price to the underwriters of $30.9022 per share, consisting of (i) 5,600,000 shares offered directly by us and (ii) 4,462,500 shares offered by the forward dealer in connection with certain forward sale agreements (including 1,312,500 shares offered pursuant to the underwriters’ option to purchase additional shares, which option was exercised in full). The offering closed on January 16, 2020 and we received net proceeds from the sale of shares offered directly by us of approximately $173.1 million. Subject to our right to elect cash or net share settlement, we have the ability to settle the forward sales agreements at any time through scheduled maturity date of the forward sale agreements of January 13, 2021.

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 September 30, 2020, we owned approximately 97.8% of the Operating Partnership, and our current and former executive officers, directors, senior employees and their affiliates, and third parties who contributed properties to us in exchange for common units in our Operating Partnership, owned the remaining 2.2%.

Interest Rate Risk

We use interest rate swaps to fix the rate of our variable rate debt. As of September 30, 2020, 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.

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The following table details our outstanding interest rate swaps as of September 30, 2020.

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
Royal Bank of Canada	Jan-08-2015	Mar-20-2015	$	25,000	$	(182)	1.7090	%	One-month L	Mar-21-2021
The Toronto-Dominion Bank	Jan-08-2015	Mar-20-2015	$	25,000	$	(182)	1.7105	%	One-month L	Mar-21-2021
The Toronto-Dominion Bank	Jan-08-2015	Sep-10-2017	$	100,000	$	(970)	2.2255	%	One-month L	Mar-21-2021
Wells Fargo, N.A.	Jan-08-2015	Mar-20-2015	$	25,000	$	(639)	1.8280	%	One-month L	Mar-31-2022
The Toronto-Dominion Bank	Jan-08-2015	Feb-14-2020	$	25,000	$	(874)	2.4535	%	One-month L	Mar-31-2022
Regions Bank	Jan-08-2015	Feb-14-2020	$	50,000	$	(1,766)	2.4750	%	One-month L	Mar-31-2022
Capital One, N.A.	Jan-08-2015	Feb-14-2020	$	50,000	$	(1,808)	2.5300	%	One-month L	Mar-31-2022
The Toronto-Dominion Bank	Jul-20-2017	Oct-30-2017	$	25,000	$	(979)	1.8485	%	One-month L	Jan-04-2023
Royal Bank of Canada	Jul-20-2017	Oct-30-2017	$	25,000	$	(980)	1.8505	%	One-month L	Jan-04-2023
Wells Fargo, N.A.	Jul-20-2017	Oct-30-2017	$	25,000	$	(980)	1.8505	%	One-month L	Jan-04-2023
PNC Bank, N.A.	Jul-20-2017	Oct-30-2017	$	25,000	$	(978)	1.8485	%	One-month L	Jan-04-2023
PNC Bank, N.A.	Jul-20-2017	Oct-30-2017	$	50,000	$	(1,956)	1.8475	%	One-month L	Jan-04-2023
The Toronto-Dominion Bank	Apr-20-2020	Sep-29-2020	$	75,000	$	(272)	0.2750	%	One-month L	Apr-18-2023
Wells Fargo, N.A.	Apr-20-2020	Sep-29-2020	$	75,000	$	(279)	0.2790	%	One-month L	Apr-18-2023
The Toronto-Dominion Bank	Apr-20-2020	Mar-19-2021	$	75,000	$	(230)	0.2750	%	One-month L	Apr-18-2023
Wells Fargo, N.A.	Apr-20-2020	Mar-19-2021	$	75,000	$	(239)	0.2800	%	One-month L	Apr-18-2023
The Toronto-Dominion Bank	Jul-24-2018	Jul-26-2019	$	50,000	$	(4,568)	2.9180	%	One-month L	Jan-12-2024
PNC Bank, N.A.	Jul-24-2018	Jul-26-2019	$	50,000	$	(4,568)	2.9190	%	One-month L	Jan-12-2024
Bank of Montreal	Jul-24-2018	Jul-26-2019	$	50,000	$	(4,568)	2.9190	%	One-month L	Jan-12-2024
U.S. Bank, N.A.	Jul-24-2018	Jul-26-2019	$	25,000	$	(2,284)	2.9190	%	One-month L	Jan-12-2024
Wells Fargo, N.A.	May-02-2019	Jul-15-2020	$	50,000	$	(4,412)	2.2460	%	One-month L	Jan-15-2025
U.S. Bank, N.A.	May-02-2019	Jul-15-2020	$	50,000	$	(4,411)	2.2459	%	One-month L	Jan-15-2025
Regions Bank	May-02-2019	Jul-15-2020	$	50,000	$	(4,411)	2.2459	%	One-month L	Jan-15-2025
Bank of Montreal	Jul-16-2019	Jul-15-2020	$	50,000	$	(3,276)	1.7165	%	One-month L	Jan-15-2025

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 September 30, 2020, the fair value of all of our 24 interest rate swaps were in a liability position of approximately $45.8 million, including any adjustment for nonperformance risk related to these agreements.

As of September 30, 2020, we had $975.0 million of variable rate debt. As of September 30, 2020, 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 September 30, 2020, we had letters of credit related to development projects and certain other agreements of approximately $3.0 million. As of September 30, 2020, 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 September 30, 2020, we had $975.0 million of variable rate debt outstanding. As of September 30, 2020, all of our outstanding variable rate debt, with the exception of our unsecured credit facility which had a balance of zero, 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

48

pay principal and interest on our debt and our ability to make distributions to our security holders. Further, rising interest rates could limit our ability to refinance existing debt when it matures or significantly increase our future interest expense. From time to time, we enter into interest rate swap agreements and other interest rate hedging contracts, including swaps, caps and floors. While these agreements are intended to lessen the impact of rising interest rates on us, they also expose us to the risk that the other parties to the agreements will not perform, we could incur significant costs associated with the settlement of the agreements, the agreements will be unenforceable and the underlying transactions will fail to qualify as highly-effective cash flow hedges under 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.

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 September 30, 2020. 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 September 30, 2020 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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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, 2019 filed with the SEC on February 12, 2020.

The COVID-19 pandemic or any future pandemic, epidemic or outbreak of infectious disease could have material and adverse effects on our business, financial condition, results of operations and cash flows and the markets and communities in which we and our tenants operate.

The COVID-19 pandemic has severely impacted global economic activity and caused significant volatility and negative pressure in financial markets. The global impact of the outbreak continues to rapidly evolve and many countries, including the United States, have reacted by instituting quarantines, mandating business and school closures and restricting travel. As a result, the COVID-19 pandemic is negatively impacting almost every industry directly or indirectly. Additionally, in June, the National Bureau of Economic Research announced that the United States entered into a recession in February 2020. The rapid development and fluidity of the COVID-19 pandemic precludes any prediction as to the ultimate adverse impact of COVID-19.

The COVID-19 pandemic or any 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;

•the repurposing or redevelopment of retail properties made defunct by the pandemic into industrial properties;

•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 ultimate impact of the COVID-19 pandemic or a similar health epidemic is highly uncertain and subject to change. We do not yet know the full extent of potential impacts on our business and operations, our tenant’s business and operations or the global economy as a whole. While the spread of COVID-19 may eventually be contained or mitigated, there is no guarantee that a future outbreak or any other widespread epidemics will not occur, or that the global economy will recover, either of which could materially harm our business.

The rapid development and fluidity of this situation precludes any prediction as to the full adverse impact of the COVID-19 pandemic. The COVID-19 pandemic presents material uncertainty and risk with respect to our financial condition, results of operations, cash flows and performance. Moreover, many risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on February 12, 2020, should be interpreted as heightened risks as a result of the impact of the COVID-19 pandemic.

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

Recent Sales of Unregistered Equity Securities

During the quarter ended September 30, 2020, the Operating Partnership issued 85,966 common units in the Operating Partnership upon exchange of outstanding long term incentive plan units issued pursuant to the STAG Industrial, Inc. 2011 Equity Incentive Plan, as amended and restated. Subject to certain restrictions, common units in the Operating Partnership may be redeemed for cash in an amount equal to the value of a share of common stock or, at our election, for a share of common stock on a one-for-one basis.

During the quarter ended September 30, 2020, we issued 282,374 shares of common stock upon redemption of 282,374 common units in the Operating Partnership held by various limited partners. The issuance of such shares of common stock was either registered under the Securities Act or effected in reliance upon an exemption from registration provided by Section 4(a)(2) under the Securities Act and the rules and regulations promulgated thereunder. We relied on the exemption based on representations given by the holders of the common units.

All other issuances of unregistered securities during the quarter ended September 30, 2020, if any, have previously been 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.

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Item 6.  Exhibits

Exhibit  Number	Description of Document
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.

52

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: November 5, 2020	BY:	/s/ WILLIAM R. CROOKER
		William R. Crooker
		Chief Financial Officer, Executive Vice President and Treasurer (Principal Financial Officer)
	BY:	/s/ JACLYN M. PAUL
		Jaclyn M. Paul
		Chief Accounting Officer, Senior Vice President (Principal Accounting Officer)

53

EX-31

Exhibit 31.2

Certification of Chief Financial 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: November 5, 2020	/s/ WILLIAM R. CROOKER
	William R. Crooker Chief Financial Officer, Executive Vice President and Treasurer

EX-31.1

Exhibit 31.1

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

I, Benjamin S. Butcher, certify that:

1.I have reviewed this 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: November 5, 2020	/s/ BENJAMIN S. BUTCHER
	Benjamin S. Butcher Chairman, Chief Executive Officer and President

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 September 30, 2020 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: November 5, 2020	/s/ BENJAMIN S. BUTCHER
	Benjamin S. Butcher Chairman, Chief Executive Officer and President
	/s/ WILLIAM R. CROOKER
	William R. Crooker Chief Financial Officer, Executive Vice President and Treasurer

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 04, 2020
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
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
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		149,230,244
Entity Central Index Key	0001479094
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Central Index Key	0001479094
Current Fiscal Year End Date	--12-31
Common Stock
Entity Information [Line Items]
Title of 12(b) Security	Common stock, $0.01 par value per share
Trading Symbol	STAG
Security Exchange Name	NYSE
Series C Preferred Stock
Entity Information [Line Items]
Title of 12(b) Security	6.875% Series C Cumulative Redeemable Preferred Stock ($0.01 par value)
Trading Symbol	STAG-PC
Security Exchange Name	NYSE

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Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Rental Property:
Land	$ 447,356	$ 435,923
Buildings and improvements, net of accumulated depreciation of $473,369 and $387,633, respectively	3,164,553	3,087,435
Deferred leasing intangibles, net of accumulated amortization of $264,262 and $241,304, respectively	439,046	475,149
Total rental property, net	4,050,955	3,998,507
Cash and cash equivalents	70,137	9,041
Restricted cash	4,623	2,823
Tenant accounts receivable	66,761	57,592
Prepaid expenses and other assets	49,157	38,231
Interest rate swaps	0	303
Operating lease right-of-use assets	24,124	15,129
Assets held for sale, net	0	43,019
Total assets	4,265,757	4,164,645
Liabilities:
Unsecured credit facility	0	146,000
Unsecured term loans, net	970,696	871,375
Unsecured notes, net	573,181	572,883
Mortgage notes, net	52,365	54,755
Accounts payable, accrued expenses and other liabilities	74,619	53,737
Interest rate swaps	45,812	18,819
Tenant prepaid rent and security deposits	23,413	21,993
Dividends and distributions payable	18,302	17,465
Deferred leasing intangibles, net of accumulated amortization of $14,176 and $12,064, respectively	24,991	26,738
Operating lease liabilities	26,414	16,989
Total liabilities	1,809,793	1,800,754
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Common stock, par value $0.01 per share, 300,000,000 shares authorized at September 30, 2020 and December 31, 2019, respectively, 149,227,013 and 142,815,593 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively	1,492	1,428
Additional paid-in capital	3,155,271	2,970,553
Cumulative dividends in excess of earnings	(782,037)	(723,027)
Accumulated other comprehensive loss	(45,055)	(18,426)
Total stockholders’ equity	2,404,671	2,305,528
Noncontrolling interest	51,293	58,363
Total equity	2,455,964	2,363,891
Total liabilities and equity	4,265,757	4,164,645
Series C Preferred Stock
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Preferred stock	$ 75,000	$ 75,000

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Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Building and Improvements, accumulated depreciation	$ 473,369	$ 387,633
Deferred leasing intangible assets, accumulated amortization	264,262	241,304
Deferred leasing intangible liabilities, accumulated amortization	$ 14,176	$ 12,064
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 Outstanding	3,000,000	3,000,000
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	300,000,000	300,000,000
Common Stock, Shares, Issued	149,227,013	142,815,593
Common Stock, Shares, Outstanding	149,227,013	142,815,593
Series C Preferred Stock
Preferred Stock, Shares Issued	3,000,000	3,000,000
Preferred Stock, Liquidation Preference Per Share	$ 25.00	$ 25.00

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Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues [Abstract]
Rental income	$ 117,247	$ 102,294	$ 353,057	$ 294,271
Other income	48	127	403	498
Total revenue	117,295	102,421	353,460	294,769
Expenses
Property	20,817	18,157	63,156	54,623
General and administrative	9,537	8,924	29,316	26,723
Depreciation and amortization	53,921	46,908	160,215	133,844
Loss on impairments	3,172	4,413	3,172	9,757
Other expenses	436	458	1,500	1,284
Total expenses	87,883	78,860	257,359	226,231
Other income (expense)
Interest and other income	165	12	400	30
Interest expense	(15,928)	(14,053)	(46,125)	(39,080)
Loss on extinguishment of debt	0	0	(834)	0
Gain on involuntary conversion	1,500	0	2,157	0
Gain on the sales of rental property, net	9,060	1,670	56,864	3,261
Total other income (expense)	(5,203)	(12,371)	12,462	(35,789)
Net income	24,209	11,190	108,563	32,749
Less: income attributable to noncontrolling interest after preferred stock dividends	466	290	2,471	912
Net income attributable to STAG Industrial, Inc.	23,743	10,900	106,092	31,837
Less: preferred stock dividends	1,289	1,289	3,867	3,867
Less: amount allocated to participating securities	68	78	204	236
Net income attributable to common stockholders	$ 22,386	$ 9,533	$ 102,021	$ 27,734
Weighted average common shares outstanding — basic	148,997	127,272	148,412	122,460
Weighted average common shares outstanding — diluted	149,905	127,469	148,865	122,720
Net income per share — basic and diluted
Net income per share attributable to common stockholders — basic	$ 0.15	$ 0.07	$ 0.69	$ 0.23
Net income per share attributable to common stockholders — diluted	$ 0.15	$ 0.07	$ 0.69	$ 0.23

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Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 24,209	$ 11,190	$ 108,563	$ 32,749
Other comprehensive income (loss):
Income (loss) on interest rate swaps	4,927	(6,435)	(27,273)	(29,441)
Other comprehensive income (loss)	4,927	(6,435)	(27,273)	(29,441)
Comprehensive income	29,136	4,755	81,290	3,308
Income attributable to noncontrolling interest after preferred stock dividends	(466)	(290)	(2,471)	(912)
Other comprehensive (income) loss attributable to noncontrolling interest	(145)	176	644	930
Comprehensive income attributable to STAG Industrial, Inc.	$ 28,525	$ 4,641	$ 79,463	$ 3,326

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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, 2018	$ 1,669,632	$ 75,000	$ 1,122	$ 2,118,179	$ (584,979)	$ 4,481	$ 1,613,803	$ 55,829
Balance (in shares) at Dec. 31, 2018			112,165,786
Increase (Decrease) in Stockholders' Equity
Cumulative Effect of New Accoutning Principle in Period of Adoption	(214)				(214)		(214)
Proceeds from sales of common stock, net	568,077		$ 201	567,876			568,077
Proceeds from sales of common stock (in shares)			19,997,332
Dividends, Common Stock					(136,595)
Dividends							(136,595)
Dividends and Distributions, Net	(141,842)
Distribution Made to Limited Partner, Cash Distributions Declared								(5,247)
Non-cash compensation activity, net	5,994			2,198			1,826	4,168
Non-cash compensation activity (in shares)			134,188
Non-cash compensation activity (in excess of earnings)			$ (1)		(373)
Redemption of common units to common stock			$ (6)	(9,232)			(9,238)	(9,238)
Redemption of common units to common stock (in shares)			661,082
Rebalancing of noncontrolling interest				(10,367)			(10,367)	10,367
Other comprehensive income	(29,441)					(28,511)	(28,511)	(930)
Net income	32,749				31,837		31,837	912
Balance at Sep. 30, 2019	2,104,955	75,000	$ 1,330	2,687,118	(690,324)	(24,030)	2,049,094	55,861
Balance (in shares) at Sep. 30, 2019			132,958,388
Balance at Dec. 31, 2018	1,669,632	75,000	$ 1,122	2,118,179	(584,979)	4,481	1,613,803	$ 55,829
Balance (in shares) at Dec. 31, 2018			112,165,786
Increase (Decrease) in Stockholders' Equity
Redemption of common units to common stock (in shares)								0
Balance at Dec. 31, 2019	2,363,891	75,000	$ 1,428	2,970,553	(723,027)	(18,426)	2,305,528	$ 58,363
Balance (in shares) at Dec. 31, 2019			142,815,593
Balance at Jun. 30, 2019	1,963,252	75,000	$ 1,264	2,501,013	(653,759)	(17,771)	1,905,747	57,505
Balance (in shares) at Jun. 30, 2019			126,372,945
Increase (Decrease) in Stockholders' Equity
Proceeds from sales of common stock, net	183,212		$ 64	183,148			183,212
Proceeds from sales of common stock (in shares)			6,375,129
Dividends, Common Stock					(47,465)
Dividends							(47,465)
Dividends and Distributions, Net	(48,840)
Distribution Made to Limited Partner, Cash Distributions Declared								(1,375)
Non-cash compensation activity, net	2,576			1,675			1,675	901
Non-cash compensation activity (in shares)			3,162
Non-cash compensation activity (in excess of earnings)			$ 0		0
Redemption of common units to common stock			$ (2)	(3,001)			(3,003)	(3,003)
Redemption of common units to common stock (in shares)			207,152
Rebalancing of noncontrolling interest				(1,719)			(1,719)	1,719
Other comprehensive income	(6,435)					(6,259)	(6,259)	(176)
Net income	11,190				10,900		10,900	290
Balance at Sep. 30, 2019	2,104,955	75,000	$ 1,330	2,687,118	(690,324)	(24,030)	2,049,094	55,861
Balance (in shares) at Sep. 30, 2019			132,958,388
Balance at Dec. 31, 2019	2,363,891	75,000	$ 1,428	2,970,553	(723,027)	(18,426)	2,305,528	58,363
Balance (in shares) at Dec. 31, 2019			142,815,593
Increase (Decrease) in Stockholders' Equity
Proceeds from sales of common stock, net	172,635		$ 56	172,579			172,635
Proceeds from sales of common stock (in shares)			5,600,000
Dividends, Common Stock					(164,712)
Dividends							(164,712)
Dividends and Distributions, Net	(169,124)
Distribution Made to Limited Partner, Cash Distributions Declared								4,412
Non-cash compensation activity, net	7,272			3,084			2,695	4,577
Non-cash compensation activity (in shares)			81,316
Non-cash compensation activity (in excess of earnings)			$ (1)		(390)
Redemption of common units to common stock			$ (7)	(11,535)			(11,542)	$ (11,542)
Redemption of common units to common stock (in shares)			730,104					0
Rebalancing of noncontrolling interest				(2,480)			(2,480)	$ 2,480
Other comprehensive income	(27,273)					(26,629)	(26,629)	(644)
Net income	108,563				106,092		106,092	2,471
Balance at Sep. 30, 2020	2,455,964	75,000	$ 1,492	3,155,271	(782,037)	(45,055)	2,404,671	51,293
Balance (in shares) at Sep. 30, 2020			149,227,013
Balance at Jun. 30, 2020	2,480,317	75,000	$ 1,489	3,148,163	(750,770)	(49,837)	2,424,045	56,272
Balance (in shares) at Jun. 30, 2020			148,941,121
Increase (Decrease) in Stockholders' Equity
Proceeds from sales of common stock, net	(21)		$ 0	(21)			(21)
Proceeds from sales of common stock (in shares)			0
Dividends, Common Stock					(55,010)
Dividends							(55,010)
Dividends and Distributions, Net	(56,421)
Distribution Made to Limited Partner, Cash Distributions Declared								(1,411)
Non-cash compensation activity, net	2,953			1,972			1,972	981
Non-cash compensation activity (in shares)			3,518
Non-cash compensation activity (in excess of earnings)			$ 0		0
Redemption of common units to common stock			$ (3)	(4,453)			(4,456)	(4,456)
Redemption of common units to common stock (in shares)			282,374
Rebalancing of noncontrolling interest				704			704	(704)
Other comprehensive income	4,927					4,782	4,782	145
Net income	24,209				23,743		23,743	466
Balance at Sep. 30, 2020	$ 2,455,964	$ 75,000	$ 1,492	$ 3,155,271	$ (782,037)	$ (45,055)	$ 2,404,671	$ 51,293
Balance (in shares) at Sep. 30, 2020			149,227,013

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net income	$ 108,563	$ 32,749
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	160,215	133,844
Loss on impairments	3,172	9,757
Gain on involuntary conversion	(2,157)	0
Non-cash portion of interest expense	2,172	1,909
Amortization of above and below market leases, net	3,629	3,344
Straight-line rent adjustments, net	(8,170)	(8,586)
Dividends on forfeited equity compensation	0	7
Loss on extinguishment of debt	834	0
Gain on the sales of rental property, net	(56,864)	(3,261)
Non-cash compensation expense	8,736	7,371
Change in assets and liabilities:
Tenant accounts receivable	1,181	509
Prepaid expenses and other assets	(13,638)	(10,525)
Accounts payable, accrued expenses and other liabilities	15,038	8,834
Tenant prepaid rent and security deposits	1,420	(1,022)
Total adjustments	115,568	142,181
Net cash provided by operating activities	224,131	174,930
Cash flows from investing activities:
Acquisitions of land and buildings and improvements	(162,086)	(616,647)
Additions of land and building and improvements	(39,687)	(40,193)
Acquisitions of other assets	450	2,513
Proceeds from sales of rental property, net	121,339	23,700
Proceeds from involuntary conversion	782	0
Acquisition deposits, net	(1,124)	(1,190)
Acquisitions of deferred leasing intangibles	(32,815)	(128,832)
Acquisitions of operating lease liabilities	2,321	0
Net cash used in investing activities	(114,041)	(765,675)
Cash flows from financing activities:
Proceeds from unsecured credit facility	387,000	768,000
Repayment of unsecured credit facility	(533,000)	(790,500)
Proceeds from unsecured term loans	400,000	175,000
Repayment of unsecured term loans	(300,000)	0
Repayment of mortgage notes	(2,485)	(1,441)
Payment of loan fees and costs	1,129	1,226
Payment of defeasance fees and other costs	(425)	0
Proceeds from sales of common stock, net	172,605	568,390
Dividends and distributions	168,288	139,303
Repurchase and retirement of share-based compensation	(1,472)	(1,444)
Net cash provided by (used in) financing activities	(47,194)	577,476
Increase (decrease) in cash and cash equivalents and restricted cash	62,896	(13,269)
Cash and cash equivalents and restricted cash—beginning of period	11,864	22,542
Cash and cash equivalents and restricted cash—end of period	74,760	9,273
Supplemental disclosure:
Cash paid for interest, net of capitalized interest	41,797	35,372
Supplemental schedule of non-cash investing and financing activities
Acquisitions of land and buildings and improvements	482	72
Acquisitions of deferred leasing intangibles	106	24
Change in additions of land, building, and improvements included in accounts payable, accrued expenses, and other liabilities	(3,970)	(10,824)
Additions to building and other capital improvements from non-cash compensation	(24)	(59)
Change in loan fees, costs, and offering costs included in accounts payable, accrued expenses, and other liabilities	(1,020)	(314)
Leases cumulative effect adjustment	0	(214)
Dividends and distributions payable	18,302	16,293
Payment to acquire operating lease right-of-use assets	$ 2,321	$ 0

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Organization and Description of Business

9 Months Ended

Sep. 30, 2020

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 September 30, 2020 and December 31, 2019, the Company owned a 97.8% and 97.5%, 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 and partnerships, including the Operating Partnership, except where context otherwise requires.

As of September 30, 2020, the Company owned 462 buildings in 38 states with approximately 92.3 million rentable square feet, consisting of 384 warehouse/distribution buildings, 70 light manufacturing buildings, and eight flex/office buildings.

COVID-19 Pandemic

Currently, one of the most significant risks and uncertainties facing the Company and the real estate industry generally is the potential adverse effect of 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. While the Company did not incur significant disruptions from the COVID-19 pandemic during the nine months ended September 30, 2020, a number of the Company’s tenants requested rent deferral or rent abatement as a result of the pandemic and other tenants may make requests in the future. The Company entered into a limited number of rent deferral agreements during the three and nine months ended September 30, 2020, which resulted in the recognition of approximately $0.4 million and $1.9 million of rent deferrals during the three and nine months ended September 30, 2020, respectively. The Company evaluates 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

9 Months Ended

Sep. 30, 2020

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, 2019.

Basis of Presentation

The Company’s consolidated financial statements include the accounts of the Company, the Operating Partnership, and their 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.

New Accounting Standards

In March 2020, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the quarter ended March 31, 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. We have not modified any contracts to date, however, we will evaluate any debt, derivative and lease contracts that are modified in the future to ensure they are eligible for modification relief and apply the practical expedients as needed.

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)	September 30, 2020		December 31, 2019
Cash and cash equivalents	$	70,137	$	9,041
Restricted cash	4,623		2,823
Total cash and cash equivalents and restricted cash	$	74,760	$	11,864

Taxes

Federal Income Taxes

The Company’s taxable REIT subsidiary recognized net income of approximately $0, $0, $0 and $0.3 million for the three and nine months ended September 30, 2020 and 2019, respectively, which has been included on the accompanying Consolidated Statements of Operations.

State and Local Income, Excise, and Franchise Tax

State and local income, excise, and franchise taxes in the amount of $0.4 million, $1.3 million, $0.3 million and $0.9 million have been recorded in other expenses on the accompanying Consolidated Statements of Operations for the three and nine months ended September 30, 2020 and 2019, respectively.

Uncertain Tax Positions

As of September 30, 2020 and December 31, 2019, 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

9 Months Ended

Sep. 30, 2020

Real Estate [Abstract]

Rental Property

Rental Property

The following table summarizes the components of rental property as of September 30, 2020 and December 31, 2019.

Rental Property (in thousands)	September 30, 2020		December 31, 2019
Land	$	447,356	$	435,923
Buildings, net of accumulated depreciation of $311,326 and $254,458, respectively	2,862,026		2,787,234
Tenant improvements, net of accumulated depreciation of $23,641 and $21,487, respectively	39,495		38,339
Building and land improvements, net of accumulated depreciation of $138,402 and $111,688, respectively	243,807		232,456
Construction in progress	19,225		29,406
Deferred leasing intangibles, net of accumulated amortization of $264,262 and $241,304, respectively	439,046		475,149
Total rental property, net	$	4,050,955	$	3,998,507

Acquisitions

The following table summarizes the acquisitions of the Company during the three and nine months ended September 30, 2020.

Market (1)	Date Acquired	Square Feet	Number of Buildings	Purchase Price (in thousands)
Detroit, MI	January 10, 2020	491,049	1	$	29,543
Rochester, NY	January 10, 2020	124,850	1	8,565
Minneapolis/St Paul, MN	February 6, 2020	139,875	1	10,460
Sacramento, CA	February 6, 2020	160,534	1	18,468
Richmond, VA	February 6, 2020	78,128	1	5,481
Milwaukee/Madison, WI	February 7, 2020	81,230	1	7,219
Detroit, MI	February 11, 2020	311,123	1	23,141
Philadelphia, PA	March 9, 2020	78,000	1	6,571
Tulsa, OK	March 9, 2020	134,600	1	9,895
Three months ended March 31, 2020		1,599,389	9	119,343
Sacramento, CA	June 11, 2020	54,463	1	5,730
Chicago, IL	June 29, 2020	67,817	1	6,184
Three months ended June 30, 2020		122,280	2	11,914
Philadelphia, PA	August 31, 2020	112,294	1	8,427
Pittsburgh, PA	September 3, 2020	125,000	1	15,580
Pittsburgh, PA	September 24, 2020	66,387	1	6,685
Charlotte, NC	September 28, 2020	50,000	1	5,729
Cleveland, OH	September 29, 2020	276,000	1	28,261
Three months ended September 30, 2020		629,681	5	64,682
Nine months ended September 30, 2020		2,351,350	16	$	195,939

(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.

The following table summarizes the allocation of the consideration paid at the date of acquisition during the nine months ended September 30, 2020 for the acquired assets and liabilities in connection with the acquisitions identified in the table above.

Acquired Assets and Liabilities	Purchase Price (in thousands)		Weighted Average Amortization Period (years) of Intangibles at Acquisition
Land	$	15,338	N/A
Buildings	135,570		N/A
Tenant improvements	2,096		N/A
Building and land improvements	8,895		N/A
Construction in progress	669		N/A
Other assets	450		N/A
Operating lease right-of-use assets	2,321		N/A
Deferred leasing intangibles - In-place leases	21,496		8.0
Deferred leasing intangibles - Tenant relationships	10,150		11.1
Deferred leasing intangibles - Above market leases	3,962		12.6
Deferred leasing intangibles - Below market leases	(2,687)		5.3
Operating lease liabilities	(2,321)		N/A
Total purchase price	$	195,939

The following table summarizes the results of operations for the three and nine months ended September 30, 2020 for the buildings acquired during the nine months ended September 30, 2020 included in the Company’s Consolidated Statements of Operations from the date of acquisition.

Results of Operations (in thousands)	Three months ended September 30, 2020		Nine months ended September 30, 2020
Total revenue	$	3,298	$	8,046
Net income	$	601	$	1,462

Dispositions

During the nine months ended September 30, 2020, the Company sold five buildings to third parties comprised of approximately 1.7 million rentable square feet with a net book value of approximately $64.4 million. These buildings contributed approximately $0.1 million, $0.8 million, $1.3 million and $4.5 million to revenue for the three and nine months ended September 30, 2020 and 2019, respectively. These buildings contributed approximately $(0.3) million, $(0.4) million, $(0.2) million and $0.3 million to net income (loss) (exclusive of gain on the sales of rental property, net and loss on extinguishment of debt) for the three and nine months ended September 30, 2020 and 2019, respectively. Net proceeds from the sales of rental property were approximately $121.3 million and the Company recognized the full gain on the sales of rental property, net, of approximately $56.9 million for the nine months ended September 30, 2020.

Loss on Impairments

The following table summarizes the Company’s loss on impairments for assets held and used during the nine months ended September 30, 2020.

Market(1)	Number of Buildings	Event or Change in Circumstance Leading to Impairment Evaluation(2)	Valuation technique utilized to estimate fair value		Fair Value(3)		Loss on Impairments
					(in thousands)
Williamsport, PA	1	Change in estimated hold period	Discounted cash flows	(4)
Three months ended September 30, 2020					$	5,019	$	3,172
Nine months ended September 30, 2020					$	5,019	$	3,172

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

(2)The Company tested the asset group for impairment utilizing a recovery analysis, and it was determined that the carrying value of the property and intangibles were not recoverable from the estimated future undiscounted cash flows.

(3)The estimated fair value of the property is based on Level 3 inputs and is a non-recurring fair value measurement. Level 3 is defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

(4)Level 3 inputs used to determine fair value for the property impaired for the three months ended September 30, 2020: discount rate of 10.5% and exit capitalization rate of 10.0%.

During the three and nine months ended September 30, 2019, the Company recognized approximately $4.4 million and $9.8 million, respectively, of loss on impairments related to six buildings.

Gain on Involuntary Conversion

During the three and nine months ended September 30, 2020, the Company recognized a gain on involuntary conversion of approximately $1.5 million and $2.2 million, respectively, related to an eminent domain taking of a portion of a parcel of land. During the three and nine months ended September 30, 2019, the Company did not recognize any gain on involuntary conversion.

Deferred Leasing Intangibles

The following table summarizes the deferred leasing intangibles on the accompanying Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019.

	September 30, 2020						December 31, 2019
Deferred Leasing Intangibles (in thousands)	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Above market leases	$	93,002	$	(36,711)	$	56,291	$	92,607	$	(32,115)	$	60,492
Other intangible lease assets	610,306		(227,551)		382,755		623,846		(209,189)		414,657
Total deferred leasing intangible assets	$	703,308	$	(264,262)	$	439,046	$	716,453	$	(241,304)	$	475,149
Below market leases	$	39,167	$	(14,176)	$	24,991	$	38,802	$	(12,064)	$	26,738
Total deferred leasing intangible liabilities	$	39,167	$	(14,176)	$	24,991	$	38,802	$	(12,064)	$	26,738

The following table summarizes the amortization expense and the net decrease to rental income for the amortization of deferred leasing intangibles during the three and nine months ended September 30, 2020 and 2019.

	Three months ended September 30,				Nine months ended September 30,
Deferred Leasing Intangibles Amortization (in thousands)	2020		2019		2020		2019
Net decrease to rental income related to above and below market lease amortization	$	1,482	$	1,248	$	3,646	$	3,361
Amortization expense related to other intangible lease assets	$	21,780	$	18,472	$	63,158	$	53,185

The following table summarizes the amortization of deferred leasing intangibles over the next five calendar years beginning with 2020 as of September 30, 2020.

Year	Amortization Expense Related to Other Intangible Lease Assets (in thousands)		Net Decrease to Rental Income Related to Above and Below Market Lease Amortization (in thousands)
Remainder of 2020	$	18,290	$	859
2021	$	65,614	$	2,764
2022	$	56,254	$	2,298
2023	$	47,759	$	2,504
2024	$	38,947	$	2,812

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Debt

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Debt

DebtThe 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 September 30, 2020 and December 31, 2019.

Loan	Principal Outstanding as of September 30, 2020 (in thousands)		Principal Outstanding as of December 31, 2019 (in thousands)		Interest  Rate(1)(2)		Maturity Date	Prepayment Terms(3)
Unsecured credit facility:
Unsecured Credit Facility(4)	$	—	$	146,000	L + 0.90%		January 12, 2024	i
Total unsecured credit facility	—		146,000
Unsecured term loans:
Unsecured Term Loan C(5)	—		150,000		2.39	%	September 29, 2020	i
Unsecured Term Loan B(5)	—		150,000		3.05	%	March 21, 2021	i
Unsecured Term Loan A	150,000		150,000		3.38	%	March 31, 2022	i
Unsecured Term Loan D	150,000		150,000		2.85	%	January 4, 2023	i
Unsecured Term Loan G(6)	300,000		—		2.77	%	April 18, 2023	i
Unsecured Term Loan E	175,000		175,000		3.92	%	January 15, 2024	i
Unsecured Term Loan F	200,000		100,000		3.11	%	January 12, 2025	i
Total unsecured term loans	975,000		875,000
Less: Total unamortized deferred financing fees and debt issuance costs	(4,304)		(3,625)
Total carrying value unsecured term loans, net	970,696		871,375
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
Total unsecured notes	575,000		575,000
Less: Total unamortized deferred financing fees and debt issuance costs	(1,819)		(2,117)
Total carrying value unsecured notes, net	573,181		572,883
Mortgage notes (secured debt):
Wells Fargo Bank, National Association CMBS Loan	49,013		51,406		4.31	%	December 1, 2022	iii
Thrivent Financial for Lutherans	3,587		3,679		4.78	%	December 15, 2023	iv
Total mortgage notes	52,600		55,085
Add: Total unamortized fair market value premiums	31		39
Less: Total unamortized deferred financing fees and debt issuance costs	(266)		(369)
Total carrying value mortgage notes, net	52,365		54,755
Total / weighted average interest rate(7)	$	1,596,242	$	1,645,013	3.62	%

(1)Interest rate as of September 30, 2020. At September 30, 2020, the one-month LIBOR (“L”) was 0.14825%. 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, 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 1.0%, with the exception of the Unsecured Term Loan G which has a spread of 1.5% and is subject to a minimum rate for LIBOR of 0.25%. As of September 30, 2020, one-month LIBOR for the Unsecured Term Loans A, D, E, F, and G was swapped to a fixed rate of 2.38%, 1.85%, 2.92%, 2.11%, and 1.17%, respectively. One-month LIBOR for the Unsecured Term Loan G will be swapped to a fixed rate of 0.28% effective March 19, 2021.

(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, however can be defeased; and (iv) pre-payable without penalty three months prior to the maturity date.

(4)The capacity of the unsecured credit facility is $500.0 million. Deferred financing fees and debt issuance costs, net of accumulated amortization related to the unsecured credit facility of approximately $1.8 million and $2.4 million is included in prepaid expenses and other assets on the accompanying Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019, respectively. The initial maturity date is January 15, 2023, 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)The Unsecured Term Loan B and the Unsecured Term Loan C were paid in full on April 17, 2020 in connection with the execution of the Unsecured Term Loan G.

(6)The initial maturity date is April 16, 2021, which may be extended pursuant to two one-year extension options exercisable by the Company in its discretion upon advance written notice. Exercise of each one-year 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.

(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.

The aggregate undrawn nominal commitment on the unsecured credit facility as of September 30, 2020 was approximately $497.0 million, including issued letters of credit. The Company’s actual borrowing capacity at any given point in time may be less and is restricted to a maximum amount based on the Company’s debt covenant compliance. Total accrued interest for the Company’s indebtedness was approximately $7.8 million and $6.3 million as of September 30, 2020 and December 31, 2019, 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 nine months ended September 30, 2020 and 2019.

	Three months ended September 30,				Nine months ended September 30,
Costs Included in Interest Expense (in thousands)	2020		2019		2020		2019
Amortization of deferred financing fees and debt issuance costs and fair market value premiums	$	750	$	673	$	2,172	$	1,909
Facility, unused, and other fees	$	315	$	348	$	995	$	1,118

On April 29, 2020, the mortgage note associated with the Wells Fargo, National Association CMBS Loan was partially defeased in the amount of approximately $1.0 million in connection with the sale of the Johnstown, NY property, which had served as partial collateral for the mortgage note. The associated defeasance fees and unamortized deferred financing fees and debt issuance costs of approximately $0.1 million were written off to loss on extinguishment of debt in the accompanying Consolidated Statement of Operations during the nine months ended September 30, 2020.

On April 17, 2020, the Company entered into the $300.0 million Unsecured Term Loan G with Wells Fargo, National Association, as administrative agent on behalf of the various lenders under the agreement. In connection with the execution of the Unsecured Term Loan G, the Unsecured Term Loan B and Unsecured Term Loan C were paid in full. As of September 30, 2020, the Unsecured Term Loan G bore an interest rate of LIBOR plus a spread of 1.5% based on the Company’s debt rating, as defined in the loan agreement, and subject to a minimum rate for LIBOR of 0.25%. The Unsecured Term Loan G matures on April 16, 2021, subject to two one year extension options at the Company's discretion, and subject to certain conditions (other than lender discretion) such as the absence of default and the payment of an extension fee. The Company intends to exercise both extension options. To exercise the extension options the Company is required pay a fee equal to (i) 0.15% of the outstanding amount on the effective day of the first extension period and (ii) 0.20% of the outstanding amount on the effective day of the second extension period. In connection with the refinancing, the Company incurred approximately $2.1 million in deferred financing fees, including approximately $1.1 million of accrued extension fees, which are being amortized through the extended maturity date of April 18, 2023. In connection with the refinancing, the Company also recognized a loss on extinguishment of debt of approximately $0.7 million related to associated unamortized deferred financing fees and debt issuance costs related to the Unsecured Term Loan B and the Unsecured Term Loan C and other third-party costs. The Company is required to pay an annual fee of $35,000. The Unsecured Term Loan G has an accordion feature that allows the Company to increase its borrowing capacity to $600.0 million, subject to the satisfaction of certain conditions and lender consents. The Company and certain wholly owned subsidiaries of the Operating Partnership are guarantors of the Unsecured Term Loan G. The agreement also contains financial and other covenants substantially similar to the covenants in the Company’s unsecured credit facility.

On March 25, 2020, the Company drew the remaining $100.0 million of the $200.0 million Unsecured Term Loan F that was entered into on July 12, 2019.

Financial Covenant Considerations

The Company was in compliance with all financial and other covenants as of September 30, 2020 and December 31, 2019 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 $82.3 million and $85.5 million at September 30, 2020 and December 31, 2019, respectively, and is limited to senior, property-level secured debt financing arrangements.

Fair Value of Debt

The following table summarizes the aggregate principal outstanding under the Company’s debt arrangements and the corresponding estimate of fair value as of September 30, 2020 and December 31, 2019.

	September 30, 2020				December 31, 2019
Indebtedness (in thousands)	Principal Outstanding		Fair Value		Principal Outstanding		Fair Value
Unsecured credit facility	$	—	$	—	$	146,000	$	146,000
Unsecured term loans	975,000		965,296		875,000		875,000
Unsecured notes	575,000		628,955		575,000		614,493
Mortgage notes	52,600		55,009		55,085		56,021
Total principal amount	1,602,600		$	1,649,260	1,651,085		$	1,691,514
Add: Total unamortized fair market value premiums	31				39
Less: Total unamortized deferred financing fees and debt issuance costs	(6,389)				(6,111)
Total carrying value	$	1,596,242			$	1,645,013

The applicable fair value guidance establishes a three tier value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The fair value of the Company’s debt is based on Level 3 inputs.

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Derivative Financial Instruments

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Use of 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 September 30, 2020. 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
Royal Bank of Canada	Jan-08-2015	Mar-20-2015	$	25,000	$	(182)	1.7090	%	One-month L	Mar-21-2021
The Toronto-Dominion Bank	Jan-08-2015	Mar-20-2015	$	25,000	$	(182)	1.7105	%	One-month L	Mar-21-2021
The Toronto-Dominion Bank	Jan-08-2015	Sep-10-2017	$	100,000	$	(970)	2.2255	%	One-month L	Mar-21-2021
Wells Fargo, N.A.	Jan-08-2015	Mar-20-2015	$	25,000	$	(639)	1.8280	%	One-month L	Mar-31-2022
The Toronto-Dominion Bank	Jan-08-2015	Feb-14-2020	$	25,000	$	(874)	2.4535	%	One-month L	Mar-31-2022
Regions Bank	Jan-08-2015	Feb-14-2020	$	50,000	$	(1,766)	2.4750	%	One-month L	Mar-31-2022
Capital One, N.A.	Jan-08-2015	Feb-14-2020	$	50,000	$	(1,808)	2.5300	%	One-month L	Mar-31-2022
The Toronto-Dominion Bank	Jul-20-2017	Oct-30-2017	$	25,000	$	(979)	1.8485	%	One-month L	Jan-04-2023
Royal Bank of Canada	Jul-20-2017	Oct-30-2017	$	25,000	$	(980)	1.8505	%	One-month L	Jan-04-2023
Wells Fargo, N.A.	Jul-20-2017	Oct-30-2017	$	25,000	$	(980)	1.8505	%	One-month L	Jan-04-2023
PNC Bank, N.A.	Jul-20-2017	Oct-30-2017	$	25,000	$	(978)	1.8485	%	One-month L	Jan-04-2023
PNC Bank, N.A.	Jul-20-2017	Oct-30-2017	$	50,000	$	(1,956)	1.8475	%	One-month L	Jan-04-2023
The Toronto-Dominion Bank	Apr-20-2020	Sep-29-2020	$	75,000	$	(272)	0.2750	%	One-month L	Apr-18-2023
Wells Fargo, N.A.	Apr-20-2020	Sep-29-2020	$	75,000	$	(279)	0.2790	%	One-month L	Apr-18-2023
The Toronto-Dominion Bank	Apr-20-2020	Mar-19-2021	$	75,000	$	(230)	0.2750	%	One-month L	Apr-18-2023
Wells Fargo, N.A.	Apr-20-2020	Mar-19-2021	$	75,000	$	(239)	0.2800	%	One-month L	Apr-18-2023
The Toronto-Dominion Bank	Jul-24-2018	Jul-26-2019	$	50,000	$	(4,568)	2.9180	%	One-month L	Jan-12-2024
PNC Bank, N.A.	Jul-24-2018	Jul-26-2019	$	50,000	$	(4,568)	2.9190	%	One-month L	Jan-12-2024
Bank of Montreal	Jul-24-2018	Jul-26-2019	$	50,000	$	(4,568)	2.9190	%	One-month L	Jan-12-2024
U.S. Bank, N.A.	Jul-24-2018	Jul-26-2019	$	25,000	$	(2,284)	2.9190	%	One-month L	Jan-12-2024
Wells Fargo, N.A.	May-02-2019	Jul-15-2020	$	50,000	$	(4,412)	2.2460	%	One-month L	Jan-15-2025
U.S. Bank, N.A.	May-02-2019	Jul-15-2020	$	50,000	$	(4,411)	2.2459	%	One-month L	Jan-15-2025
Regions Bank	May-02-2019	Jul-15-2020	$	50,000	$	(4,411)	2.2459	%	One-month L	Jan-15-2025
Bank of Montreal	Jul-16-2019	Jul-15-2020	$	50,000	$	(3,276)	1.7165	%	One-month L	Jan-15-2025

The following table summarizes the fair value of the interest rate swaps outstanding as of September 30, 2020 and December 31, 2019.

Balance Sheet Line Item (in thousands)	Notional Amount September 30, 2020		Fair Value September 30, 2020		Notional Amount December 31, 2019		Fair Value December 31, 2019
Interest rate swaps-Asset	$	—	$	—	$	250,000	$	303
Interest rate swaps-Liability	$	1,125,000	$	(45,812)	$	850,000	$	(18,819)

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 into 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 $16.6 million will be reclassified from accumulated other comprehensive loss as an increase to interest expense over the next 12 months.

The following table summarizes the effect of cash flow hedge accounting and the location in the consolidated financial statements for the three and nine months ended September 30, 2020 and 2019.

	Three months ended September 30,				Nine months ended September 30,
Effect of Cash Flow Hedge Accounting (in thousands)	2020		2019		2020		2019
Income (loss) recognized in accumulated other comprehensive loss on interest rate swaps	$	169	$	(5,913)	$	(36,167)	$	(26,715)
Income (loss) reclassified from accumulated other comprehensive loss into income as interest expense	$	(4,758)	$	522	$	(8,894)	$	2,726
Total interest expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded	$	15,928	$	14,053	$	46,125	$	39,080

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 September 30, 2020, the Company had not breached the provisions of these agreements and had not posted any collateral related to these agreements. If the Company had breached any of these provisions at September 30, 2020, it could have been required to settle its obligations under the agreement of the interest rate swaps in a net liability position by counterparty plus accrued interest for approximately $46.9 million.

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 itself and its counterparties. However, as of September 30, 2020 and December 31, 2019, 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 are accounted for at fair value on a recurring basis as of September 30, 2020 and December 31, 2019. 

			Fair Value Measurements as of September 30, 2020 Using
Balance Sheet Line Item (in thousands)	Fair Value September 30, 2020		Level 1		Level 2		Level 3
Interest rate swaps-Asset	$	—	$	—	$	—	$	—
Interest rate swaps-Liability	$	(45,812)	$	—	$	(45,812)	$	—

			Fair Value Measurements as of December 31, 2019 Using
Balance Sheet Line Item (in thousands)	Fair Value December 31, 2019		Level 1		Level 2		Level 3
Interest rate swaps-Asset	$	303	$	—	$	303	$	—
Interest rate swaps-Liability	$	(18,819)	$	—	$	(18,819)	$	—

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Noncontrolling Interest

9 Months Ended

Sep. 30, 2020

Noncontrolling Interest [Abstract]

Noncontrolling Interest

Noncontrolling Interest

The following table summarizes the activity for noncontrolling interest in the Company for the nine months ended September 30, 2020 and the year ended December 31, 2019.

Noncontrolling Interest	LTIP Units	Other Common Units	Total Noncontrolling Common Units	Noncontrolling Interest
Balance at December 31, 2018	1,616,200	2,453,234	4,069,434	3.5	%
Granted/Issued	364,173	—	364,173	N/A
Forfeited	(16,618)	—	(16,618)	N/A
Conversions from LTIP units to Other Common Units	(266,397)	266,397	—	N/A
Redemptions from Other Common Units to common stock	—	(680,137)	(680,137)	N/A
Balance at December 31, 2019	1,697,358	2,039,494	3,736,852	2.5	%
Granted/Issued	278,806	—	278,806	N/A
Forfeited	—	—	—	N/A
Conversions from LTIP units to Other Common Units	(283,741)	283,741	—	N/A
Redemptions from Other Common Units to common stock	—	(730,104)	(730,104)	N/A
Balance at September 30, 2020	1,692,423	1,593,131	3,285,554	2.2	%

The weighted average grant date fair value of outstanding LTIP units was $21.64 per unit at December 31, 2019, $29.47 per unit granted during the nine months ended September 30, 2020, $18.27 per unit converted during the nine months ended September 30, 2020, and $23.49 per unit at September 30, 2020.

LTIP Units

LTIP units granted on January 8, 2020 to non-employee, independent directors, subject to the recipient’s continued service, will vest over one year on January 1, 2021. LTIP units granted on January 8, 2020 to certain senior executive officers and senior employees, subject to the recipient’s continued employment, will vest quarterly over four years, with the first vesting date having been March 31, 2020. Refer to Note 8 for a discussion of the LTIP units granted on January 8, 2020 pursuant to the January 6, 2017 performance units.

The fair value of the LTIP units at the date of grant 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 are non-recurring fair value measurements. The following table summarizes the assumptions used in valuing such LTIP units granted during the nine months ended September 30, 2020 (excluding those LTIP units granted pursuant to the January 6, 2017 performance units; refer to Note 8 for details).

LTIP Units	Assumptions
Grant date	January 8, 2020
Expected term (years)	10
Expected volatility	18.0		%
Expected dividend yield	5.75		%
Risk-free interest rate	1.61		%
Fair value of LTIP units at issuance (in thousands)	$	4,030
LTIP units at issuance	136,741
Fair value unit price per LTIP unit at issuance	$	29.47

The following table summarizes activity related to the Company’s unvested LTIP units for the nine months ended September 30, 2020 and the year ended December 31, 2019.

Unvested LTIP Units	LTIP Units
Balance at December 31, 2018	251,216
Granted	364,173
Vested	(371,423)
Forfeited	(16,618)
Balance at December 31, 2019	227,348
Granted	278,806
Vested	(201,442)
Forfeited	—
Balance at September 30, 2020	304,712

The weighted average grant date fair value of unvested LTIP units was $23.37 per unit at December 31, 2019, $29.47 per unit granted during the nine months ended September 30, 2020, $26.23 per unit vested during the nine months ended September 30, 2020, and $27.06 per unit at September 30, 2020.

The unrecognized compensation expense associated with the Company’s LTIP units at September 30, 2020 was approximately $5.6 million and is expected to be recognized over a weighted average period of approximately 2.4 years.

The following table summarizes the fair value at vesting for the LTIP units that vested during the three and nine months ended September 30, 2020 and 2019.

	Three months ended September 30,				Nine months ended September 30,
Vested LTIP units	2020		2019		2020		2019
Vested LTIP units	27,297		29,989		201,442		234,330
Fair value of vested LTIP units (in thousands)	$	832	$	884	$	5,906	$	6,348

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Equity Incentive Plan

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

Equity Incentive Plan

Equity Incentive Plan

On January 8, 2020, the Company granted performance units approved by the compensation committee of the board of directors under the 2011 Plan to certain key employees of the Company. The terms of the performance units granted on January 8, 2020 are substantially the same as the terms of the performance units granted on January 7, 2019, except that the measuring period commenced on January 1, 2020 and ends on December 31, 2022.

The fair value of the performance units at the date of grant was determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation. The fair value of the performance units are based on Level 3 inputs and are 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 nine months ended September 30, 2020.

Performance Units	Assumptions
Grant date	January 8, 2020
Expected volatility	17.4		%
Expected dividend yield	5.75		%
Risk-free interest rate	1.59		%
Fair value of performance units grant (in thousands)	$	5,389

On December 31, 2019, the measuring period pursuant to the January 6, 2017 performance units concluded and it was determined that the Company’s total stockholder return exceeded the threshold percentage and return hurdle. The compensation committee of the board of directors approved the issuance of 76,096 vested LTIP units and 46,376 vested shares of common stock to the participants (of which 18,241 shares of common stock were repurchased and retired), which were issued on January 8, 2020. The compensation committee of the board of directors also approved the issuance of 65,969 LTIP units and 3,398 restricted shares of common stock that will vest over one year on December 31, 2020, which were issued on January 8, 2020.

The unrecognized compensation expense associated with the Company’s performance units at September 30, 2020 was approximately $7.3 million and is expected to be recognized over a weighted average period of approximately 1.8 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 nine months ended September 30, 2020 and 2019.

	Three months ended September 30,				Nine months ended September 30,
Non-Cash Compensation Expense (in thousands)	2020		2019		2020		2019
Restricted shares of common stock	$	487	$	447	$	1,435	$	1,318
LTIP units	981		901		2,923		2,687
Performance units	1,356		1,107		4,004		3,062
Director compensation (1)	122		101		374		304
Total non-cash compensation expense	$	2,946	$	2,556	$	8,736	$	7,371

(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 nine months ended September 30, 2020 and 2019. The number of shares of common stock granted is calculated based on the trailing ten days average common stock price ending on the third business day preceding the grant date.

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Leases

9 Months Ended

Sep. 30, 2020

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”). 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 recognized during the three and nine months ended September 30, 2020 and 2019 included in the accompanying Consolidated Statements of Operations.

	Three months ended September 30,				Nine months ended September 30,
Rental Income (in thousands)	2020		2019		2020		2019
Fixed lease payments	$	92,120	$	80,262	$	273,750	$	227,337
Variable lease payments	23,757		20,189		74,351		61,628
Straight-line rental income	2,852		3,091		8,602		8,667
Net decrease to rental income related to above and below market lease amortization	(1,482)		(1,248)		(3,646)		(3,361)
Total rental income	$	117,247	$	102,294	$	353,057	$	294,271

During the nine months ended September 30, 2020 and 2019 the Company evaluated its operating leases and determined that the future collectability for 10 tenants under 11 leases was not reasonably assured. As a result the Company converted to the cash basis of accounting for these leases which resulted in a reduction of rental income of approximately $0.8 million, $1.7 million, $0, and $0 for three and nine months ended September 30, 2020 and 2019, respectively, due to the reversal of accrued rent. Additionally, there was $0.9 million, $1.5 million, $0, and $0 of contractual rental income that was not recognized for payments that were not received from these tenants for the three and nine months ended September 30, 2020 and 2019, respectively.

As of September 30, 2020 and December 31, 2019, the Company had accrued rental income of approximately $54.6 million and $44.3 million, respectively, included in tenant accounts receivable on the accompanying Consolidated Balance Sheets.

As of September 30, 2020 and December 31, 2019, the Company had approximately $28.4 million and $22.6 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 September 30, 2020 and December 31, 2019, 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 September 30, 2020 and December 31, 2019, the Company’s total liability associated with these lease security deposits was approximately $10.1 million and $9.8 million, respectively, and 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 $5.0 million, $14.7 million, $5.1 million and $13.1 million for the three and nine months ended September 30, 2020 and 2019, 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 September 30, 2020.

Year	Maturity of Fixed Lease Payments (in thousands)
Remainder of 2020	$	92,565
2021	$	362,825
2022	$	327,365
2023	$	284,041
2024	$	240,067
Thereafter	$	911,977

Lessee Leases

The Company has operating leases in which it is the lessee for ground leases and its corporate office lease. These leases have remaining lease terms of approximately 5.8 years to 49.1 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 September 30, 2020 and December 31, 2019.

Operating Lease Term and Discount Rate	September 30, 2020		December 31, 2019
Weighted average remaining lease term (years)	28.9		36.0
Weighted average discount rate	6.8	%	7.1	%

The following table summarizes the operating lease cost recognized during the three and nine months ended September 30, 2020 and 2019 included in the Company’s Consolidated Statements of Operations.

	Three months ended September 30,				Nine months ended September 30,
Operating Lease Cost (in thousands)	2020		2019		2020		2019
Operating lease cost included in property expense attributable to ground leases	$	345	$	331	$	1,007	$	993
Operating lease cost included in general and administrative expense attributable to corporate office lease	424		266		1,165		799
Total operating lease cost	$	769	$	597	$	2,172	$	1,792

The following table summarizes supplemental cash flow information related to operating leases recognized during the nine months ended September 30, 2020 and 2019 in the Company’s Consolidated Statements of Cash Flows.

	Nine months ended September 30,
Operating Leases (in thousands)	2020		2019
Cash paid for amounts included in the measurement of lease liabilities (operating cash flows)	$	1,728	$	1,711
Right-of-use assets obtained in exchange for new lease liabilities	$	7,718	$	—

The following table summarizes the maturity of operating lease liabilities under the Company’s ground leases and corporate office lease as of September 30, 2020.

Year	Maturity of Operating Lease Liabilities(1) (in thousands)
Remainder of 2020	$	606
2021	2,222
2022	3,100
2023	3,153
2024	3,196
Thereafter	59,245
Total lease payments	71,522
Less: Imputed interest	(45,108)
Present value of operating lease liabilities	$	26,414

(1)Operating lease liabilities do not include estimates of CPI rent changes required by certain ground lease agreements. Therefore, actual payments may differ than 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”). 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 recognized during the three and nine months ended September 30, 2020 and 2019 included in the accompanying Consolidated Statements of Operations.

	Three months ended September 30,				Nine months ended September 30,
Rental Income (in thousands)	2020		2019		2020		2019
Fixed lease payments	$	92,120	$	80,262	$	273,750	$	227,337
Variable lease payments	23,757		20,189		74,351		61,628
Straight-line rental income	2,852		3,091		8,602		8,667
Net decrease to rental income related to above and below market lease amortization	(1,482)		(1,248)		(3,646)		(3,361)
Total rental income	$	117,247	$	102,294	$	353,057	$	294,271

During the nine months ended September 30, 2020 and 2019 the Company evaluated its operating leases and determined that the future collectability for 10 tenants under 11 leases was not reasonably assured. As a result the Company converted to the cash basis of accounting for these leases which resulted in a reduction of rental income of approximately $0.8 million, $1.7 million, $0, and $0 for three and nine months ended September 30, 2020 and 2019, respectively, due to the reversal of accrued rent. Additionally, there was $0.9 million, $1.5 million, $0, and $0 of contractual rental income that was not recognized for payments that were not received from these tenants for the three and nine months ended September 30, 2020 and 2019, respectively.

As of September 30, 2020 and December 31, 2019, the Company had accrued rental income of approximately $54.6 million and $44.3 million, respectively, included in tenant accounts receivable on the accompanying Consolidated Balance Sheets.

As of September 30, 2020 and December 31, 2019, the Company had approximately $28.4 million and $22.6 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 September 30, 2020 and December 31, 2019, 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 September 30, 2020 and December 31, 2019, the Company’s total liability associated with these lease security deposits was approximately $10.1 million and $9.8 million, respectively, and 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 $5.0 million, $14.7 million, $5.1 million and $13.1 million for the three and nine months ended September 30, 2020 and 2019, 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 September 30, 2020.

Year	Maturity of Fixed Lease Payments (in thousands)
Remainder of 2020	$	92,565
2021	$	362,825
2022	$	327,365
2023	$	284,041
2024	$	240,067
Thereafter	$	911,977

Lessee Leases

The Company has operating leases in which it is the lessee for ground leases and its corporate office lease. These leases have remaining lease terms of approximately 5.8 years to 49.1 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 September 30, 2020 and December 31, 2019.

Operating Lease Term and Discount Rate	September 30, 2020		December 31, 2019
Weighted average remaining lease term (years)	28.9		36.0
Weighted average discount rate	6.8	%	7.1	%

The following table summarizes the operating lease cost recognized during the three and nine months ended September 30, 2020 and 2019 included in the Company’s Consolidated Statements of Operations.

	Three months ended September 30,				Nine months ended September 30,
Operating Lease Cost (in thousands)	2020		2019		2020		2019
Operating lease cost included in property expense attributable to ground leases	$	345	$	331	$	1,007	$	993
Operating lease cost included in general and administrative expense attributable to corporate office lease	424		266		1,165		799
Total operating lease cost	$	769	$	597	$	2,172	$	1,792

The following table summarizes supplemental cash flow information related to operating leases recognized during the nine months ended September 30, 2020 and 2019 in the Company’s Consolidated Statements of Cash Flows.

	Nine months ended September 30,
Operating Leases (in thousands)	2020		2019
Cash paid for amounts included in the measurement of lease liabilities (operating cash flows)	$	1,728	$	1,711
Right-of-use assets obtained in exchange for new lease liabilities	$	7,718	$	—

The following table summarizes the maturity of operating lease liabilities under the Company’s ground leases and corporate office lease as of September 30, 2020.

Year	Maturity of Operating Lease Liabilities(1) (in thousands)
Remainder of 2020	$	606
2021	2,222
2022	3,100
2023	3,153
2024	3,196
Thereafter	59,245
Total lease payments	71,522
Less: Imputed interest	(45,108)
Present value of operating lease liabilities	$	26,414

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

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Earnings Per Share

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per ShareDuring the three and nine months ended September 30, 2020 and 2019, there were 189,202, 186,956, 220,284 and 218,231, respectively, of unvested restricted shares of common stock on a weighted average basis that were considered participating securities.

The following table reconciles the numerators and denominators in the computation of basic and diluted earnings per common share for the three and nine months ended September 30, 2020 and 2019.

	Three months ended September 30,				Nine months ended September 30,
Earnings Per Share (in thousands, except per share data)	2020		2019		2020		2019
Numerator
Net income attributable to common stockholders	$	22,386	$	9,533	$	102,021	$	27,734
Denominator
Weighted average common shares outstanding — basic	148,997		127,272		148,412		122,460
Effect of dilutive securities(1)
Share-based compensation	675		178		375		254
Shares issuable under forward sales agreements	233		19		78		6
Weighted average common shares outstanding — diluted	149,905		127,469		148,865		122,720
Net income per share — basic and diluted
Net income per share attributable to common stockholders — basic	$	0.15	$	0.07	$	0.69	$	0.23
Net income per share attributable to common stockholders — diluted	$	0.15	$	0.07	$	0.69	$	0.23

(1)During the three and nine months ended September 30, 2020 and 2019, there were 189, 187, 220 and 218, unvested shares of restricted common stock, respectively, on a weighted average basis 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	9 Months Ended
	Sep. 30, 2020
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 $3.0 million as of September 30, 2020 related to construction projects and certain other agreements.

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Subsequent Events

9 Months Ended

Sep. 30, 2020

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

The following non-recognized subsequent events were noted.

Subsequent to September 30, 2020, the Company acquired nine buildings with approximately 3.7 million square feet for an aggregate contractual purchase price of approximately $256.5 million. The Company has not finalized the acquisition accounting, and therefore is not able to provide the disclosures otherwise required by GAAP, for these acquisitions.

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2020

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, 2019.

Basis of Presentation

Basis of Presentation

The Company’s consolidated financial statements include the accounts of the Company, the Operating Partnership, and their 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.

New Accounting Pronouncements

New Accounting Standards

In March 2020, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the quarter ended March 31, 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. We have not modified any contracts to date, however, we will evaluate any debt, derivative and lease contracts that are modified in the future to ensure they are eligible for modification relief and apply the practical expedients as needed.

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

9 Months Ended

Sep. 30, 2020

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)	September 30, 2020		December 31, 2019
Cash and cash equivalents	$	70,137	$	9,041
Restricted cash	4,623		2,823
Total cash and cash equivalents and restricted cash	$	74,760	$	11,864

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Rental Property (Tables)

9 Months Ended

Sep. 30, 2020

Real Estate [Abstract]

Schedule of components of rental property

The following table summarizes the components of rental property as of September 30, 2020 and December 31, 2019.

Rental Property (in thousands)	September 30, 2020		December 31, 2019
Land	$	447,356	$	435,923
Buildings, net of accumulated depreciation of $311,326 and $254,458, respectively	2,862,026		2,787,234
Tenant improvements, net of accumulated depreciation of $23,641 and $21,487, respectively	39,495		38,339
Building and land improvements, net of accumulated depreciation of $138,402 and $111,688, respectively	243,807		232,456
Construction in progress	19,225		29,406
Deferred leasing intangibles, net of accumulated amortization of $264,262 and $241,304, respectively	439,046		475,149
Total rental property, net	$	4,050,955	$	3,998,507

Schedule of real estate properties acquired

The following table summarizes the acquisitions of the Company during the three and nine months ended September 30, 2020.

Market (1)	Date Acquired	Square Feet	Number of Buildings	Purchase Price (in thousands)
Detroit, MI	January 10, 2020	491,049	1	$	29,543
Rochester, NY	January 10, 2020	124,850	1	8,565
Minneapolis/St Paul, MN	February 6, 2020	139,875	1	10,460
Sacramento, CA	February 6, 2020	160,534	1	18,468
Richmond, VA	February 6, 2020	78,128	1	5,481
Milwaukee/Madison, WI	February 7, 2020	81,230	1	7,219
Detroit, MI	February 11, 2020	311,123	1	23,141
Philadelphia, PA	March 9, 2020	78,000	1	6,571
Tulsa, OK	March 9, 2020	134,600	1	9,895
Three months ended March 31, 2020		1,599,389	9	119,343
Sacramento, CA	June 11, 2020	54,463	1	5,730
Chicago, IL	June 29, 2020	67,817	1	6,184
Three months ended June 30, 2020		122,280	2	11,914
Philadelphia, PA	August 31, 2020	112,294	1	8,427
Pittsburgh, PA	September 3, 2020	125,000	1	15,580
Pittsburgh, PA	September 24, 2020	66,387	1	6,685
Charlotte, NC	September 28, 2020	50,000	1	5,729
Cleveland, OH	September 29, 2020	276,000	1	28,261
Three months ended September 30, 2020		629,681	5	64,682
Nine months ended September 30, 2020		2,351,350	16	$	195,939

(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.

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 consideration paid at the date of acquisition during the nine months ended September 30, 2020 for the acquired assets and liabilities in connection with the acquisitions identified in the table above.

Acquired Assets and Liabilities	Purchase Price (in thousands)		Weighted Average Amortization Period (years) of Intangibles at Acquisition
Land	$	15,338	N/A
Buildings	135,570		N/A
Tenant improvements	2,096		N/A
Building and land improvements	8,895		N/A
Construction in progress	669		N/A
Other assets	450		N/A
Operating lease right-of-use assets	2,321		N/A
Deferred leasing intangibles - In-place leases	21,496		8.0
Deferred leasing intangibles - Tenant relationships	10,150		11.1
Deferred leasing intangibles - Above market leases	3,962		12.6
Deferred leasing intangibles - Below market leases	(2,687)		5.3
Operating lease liabilities	(2,321)		N/A
Total purchase price	$	195,939

Schedule of pro forma information for acquired properties

The following table summarizes the results of operations for the three and nine months ended September 30, 2020 for the buildings acquired during the nine months ended September 30, 2020 included in the Company’s Consolidated Statements of Operations from the date of acquisition.

Results of Operations (in thousands)	Three months ended September 30, 2020		Nine months ended September 30, 2020
Total revenue	$	3,298	$	8,046
Net income	$	601	$	1,462

Impaired Assets to be Disposed of by Method Other than Sale

The following table summarizes the Company’s loss on impairments for assets held and used during the nine months ended September 30, 2020.

Market(1)	Number of Buildings	Event or Change in Circumstance Leading to Impairment Evaluation(2)	Valuation technique utilized to estimate fair value		Fair Value(3)		Loss on Impairments
					(in thousands)
Williamsport, PA	1	Change in estimated hold period	Discounted cash flows	(4)
Three months ended September 30, 2020					$	5,019	$	3,172
Nine months ended September 30, 2020					$	5,019	$	3,172

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

(2)The Company tested the asset group for impairment utilizing a recovery analysis, and it was determined that the carrying value of the property and intangibles were not recoverable from the estimated future undiscounted cash flows.

(3)The estimated fair value of the property is based on Level 3 inputs and is a non-recurring fair value measurement. Level 3 is defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

(4)Level 3 inputs used to determine fair value for the property impaired for the three months ended September 30, 2020: discount rate of 10.5% and exit capitalization rate of 10.0%.

During the three and nine months ended September 30, 2019, the Company recognized approximately $4.4 million and $9.8 million, respectively, of loss on impairments related to six buildings.

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 September 30, 2020 and December 31, 2019.

	September 30, 2020						December 31, 2019
Deferred Leasing Intangibles (in thousands)	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Above market leases	$	93,002	$	(36,711)	$	56,291	$	92,607	$	(32,115)	$	60,492
Other intangible lease assets	610,306		(227,551)		382,755		623,846		(209,189)		414,657
Total deferred leasing intangible assets	$	703,308	$	(264,262)	$	439,046	$	716,453	$	(241,304)	$	475,149
Below market leases	$	39,167	$	(14,176)	$	24,991	$	38,802	$	(12,064)	$	26,738
Total deferred leasing intangible liabilities	$	39,167	$	(14,176)	$	24,991	$	38,802	$	(12,064)	$	26,738

The following table summarizes the amortization expense and the net decrease to rental income for the amortization of deferred leasing intangibles during the three and nine months ended September 30, 2020 and 2019.

	Three months ended September 30,				Nine months ended September 30,
Deferred Leasing Intangibles Amortization (in thousands)	2020		2019		2020		2019
Net decrease to rental income related to above and below market lease amortization	$	1,482	$	1,248	$	3,646	$	3,361
Amortization expense related to other intangible lease assets	$	21,780	$	18,472	$	63,158	$	53,185

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 beginning with 2020 as of September 30, 2020.

Year	Amortization Expense Related to Other Intangible Lease Assets (in thousands)		Net Decrease to Rental Income Related to Above and Below Market Lease Amortization (in thousands)
Remainder of 2020	$	18,290	$	859
2021	$	65,614	$	2,764
2022	$	56,254	$	2,298
2023	$	47,759	$	2,504
2024	$	38,947	$	2,812

Below Market Lease, Future Amortization Income

The following table summarizes the amortization of deferred leasing intangibles over the next five calendar years beginning with 2020 as of September 30, 2020.

Year	Amortization Expense Related to Other Intangible Lease Assets (in thousands)		Net Decrease to Rental Income Related to Above and Below Market Lease Amortization (in thousands)
Remainder of 2020	$	18,290	$	859
2021	$	65,614	$	2,764
2022	$	56,254	$	2,298
2023	$	47,759	$	2,504
2024	$	38,947	$	2,812

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Debt (Tables)

9 Months Ended

Sep. 30, 2020

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 September 30, 2020 and December 31, 2019.

Loan	Principal Outstanding as of September 30, 2020 (in thousands)		Principal Outstanding as of December 31, 2019 (in thousands)		Interest  Rate(1)(2)		Maturity Date	Prepayment Terms(3)
Unsecured credit facility:
Unsecured Credit Facility(4)	$	—	$	146,000	L + 0.90%		January 12, 2024	i
Total unsecured credit facility	—		146,000
Unsecured term loans:
Unsecured Term Loan C(5)	—		150,000		2.39	%	September 29, 2020	i
Unsecured Term Loan B(5)	—		150,000		3.05	%	March 21, 2021	i
Unsecured Term Loan A	150,000		150,000		3.38	%	March 31, 2022	i
Unsecured Term Loan D	150,000		150,000		2.85	%	January 4, 2023	i
Unsecured Term Loan G(6)	300,000		—		2.77	%	April 18, 2023	i
Unsecured Term Loan E	175,000		175,000		3.92	%	January 15, 2024	i
Unsecured Term Loan F	200,000		100,000		3.11	%	January 12, 2025	i
Total unsecured term loans	975,000		875,000
Less: Total unamortized deferred financing fees and debt issuance costs	(4,304)		(3,625)
Total carrying value unsecured term loans, net	970,696		871,375
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
Total unsecured notes	575,000		575,000
Less: Total unamortized deferred financing fees and debt issuance costs	(1,819)		(2,117)
Total carrying value unsecured notes, net	573,181		572,883
Mortgage notes (secured debt):
Wells Fargo Bank, National Association CMBS Loan	49,013		51,406		4.31	%	December 1, 2022	iii
Thrivent Financial for Lutherans	3,587		3,679		4.78	%	December 15, 2023	iv
Total mortgage notes	52,600		55,085
Add: Total unamortized fair market value premiums	31		39
Less: Total unamortized deferred financing fees and debt issuance costs	(266)		(369)
Total carrying value mortgage notes, net	52,365		54,755
Total / weighted average interest rate(7)	$	1,596,242	$	1,645,013	3.62	%

(1)Interest rate as of September 30, 2020. At September 30, 2020, the one-month LIBOR (“L”) was 0.14825%. 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, 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 1.0%, with the exception of the Unsecured Term Loan G which has a spread of 1.5% and is subject to a minimum rate for LIBOR of 0.25%. As of September 30, 2020, one-month LIBOR for the Unsecured Term Loans A, D, E, F, and G was swapped to a fixed rate of 2.38%, 1.85%, 2.92%, 2.11%, and 1.17%, respectively. One-month LIBOR for the Unsecured Term Loan G will be swapped to a fixed rate of 0.28% effective March 19, 2021.

(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, however can be defeased; and (iv) pre-payable without penalty three months prior to the maturity date.

(4)The capacity of the unsecured credit facility is $500.0 million. Deferred financing fees and debt issuance costs, net of accumulated amortization related to the unsecured credit facility of approximately $1.8 million and $2.4 million is included in prepaid expenses and other assets on the accompanying Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019, respectively. The initial maturity date is January 15, 2023, 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)The Unsecured Term Loan B and the Unsecured Term Loan C were paid in full on April 17, 2020 in connection with the execution of the Unsecured Term Loan G.

(6)The initial maturity date is April 16, 2021, which may be extended pursuant to two one-year extension options exercisable by the Company in its discretion upon advance written notice. Exercise of each one-year 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.

(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.

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 nine months ended September 30, 2020 and 2019.

	Three months ended September 30,				Nine months ended September 30,
Costs Included in Interest Expense (in thousands)	2020		2019		2020		2019
Amortization of deferred financing fees and debt issuance costs and fair market value premiums	$	750	$	673	$	2,172	$	1,909
Facility, unused, and other fees	$	315	$	348	$	995	$	1,118

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

The following table summarizes the aggregate principal outstanding under the Company’s debt arrangements and the corresponding estimate of fair value as of September 30, 2020 and December 31, 2019.

	September 30, 2020				December 31, 2019
Indebtedness (in thousands)	Principal Outstanding		Fair Value		Principal Outstanding		Fair Value
Unsecured credit facility	$	—	$	—	$	146,000	$	146,000
Unsecured term loans	975,000		965,296		875,000		875,000
Unsecured notes	575,000		628,955		575,000		614,493
Mortgage notes	52,600		55,009		55,085		56,021
Total principal amount	1,602,600		$	1,649,260	1,651,085		$	1,691,514
Add: Total unamortized fair market value premiums	31				39
Less: Total unamortized deferred financing fees and debt issuance costs	(6,389)				(6,111)
Total carrying value	$	1,596,242			$	1,645,013

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Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2020

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 September 30, 2020. 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
Royal Bank of Canada	Jan-08-2015	Mar-20-2015	$	25,000	$	(182)	1.7090	%	One-month L	Mar-21-2021
The Toronto-Dominion Bank	Jan-08-2015	Mar-20-2015	$	25,000	$	(182)	1.7105	%	One-month L	Mar-21-2021
The Toronto-Dominion Bank	Jan-08-2015	Sep-10-2017	$	100,000	$	(970)	2.2255	%	One-month L	Mar-21-2021
Wells Fargo, N.A.	Jan-08-2015	Mar-20-2015	$	25,000	$	(639)	1.8280	%	One-month L	Mar-31-2022
The Toronto-Dominion Bank	Jan-08-2015	Feb-14-2020	$	25,000	$	(874)	2.4535	%	One-month L	Mar-31-2022
Regions Bank	Jan-08-2015	Feb-14-2020	$	50,000	$	(1,766)	2.4750	%	One-month L	Mar-31-2022
Capital One, N.A.	Jan-08-2015	Feb-14-2020	$	50,000	$	(1,808)	2.5300	%	One-month L	Mar-31-2022
The Toronto-Dominion Bank	Jul-20-2017	Oct-30-2017	$	25,000	$	(979)	1.8485	%	One-month L	Jan-04-2023
Royal Bank of Canada	Jul-20-2017	Oct-30-2017	$	25,000	$	(980)	1.8505	%	One-month L	Jan-04-2023
Wells Fargo, N.A.	Jul-20-2017	Oct-30-2017	$	25,000	$	(980)	1.8505	%	One-month L	Jan-04-2023
PNC Bank, N.A.	Jul-20-2017	Oct-30-2017	$	25,000	$	(978)	1.8485	%	One-month L	Jan-04-2023
PNC Bank, N.A.	Jul-20-2017	Oct-30-2017	$	50,000	$	(1,956)	1.8475	%	One-month L	Jan-04-2023
The Toronto-Dominion Bank	Apr-20-2020	Sep-29-2020	$	75,000	$	(272)	0.2750	%	One-month L	Apr-18-2023
Wells Fargo, N.A.	Apr-20-2020	Sep-29-2020	$	75,000	$	(279)	0.2790	%	One-month L	Apr-18-2023
The Toronto-Dominion Bank	Apr-20-2020	Mar-19-2021	$	75,000	$	(230)	0.2750	%	One-month L	Apr-18-2023
Wells Fargo, N.A.	Apr-20-2020	Mar-19-2021	$	75,000	$	(239)	0.2800	%	One-month L	Apr-18-2023
The Toronto-Dominion Bank	Jul-24-2018	Jul-26-2019	$	50,000	$	(4,568)	2.9180	%	One-month L	Jan-12-2024
PNC Bank, N.A.	Jul-24-2018	Jul-26-2019	$	50,000	$	(4,568)	2.9190	%	One-month L	Jan-12-2024
Bank of Montreal	Jul-24-2018	Jul-26-2019	$	50,000	$	(4,568)	2.9190	%	One-month L	Jan-12-2024
U.S. Bank, N.A.	Jul-24-2018	Jul-26-2019	$	25,000	$	(2,284)	2.9190	%	One-month L	Jan-12-2024
Wells Fargo, N.A.	May-02-2019	Jul-15-2020	$	50,000	$	(4,412)	2.2460	%	One-month L	Jan-15-2025
U.S. Bank, N.A.	May-02-2019	Jul-15-2020	$	50,000	$	(4,411)	2.2459	%	One-month L	Jan-15-2025
Regions Bank	May-02-2019	Jul-15-2020	$	50,000	$	(4,411)	2.2459	%	One-month L	Jan-15-2025
Bank of Montreal	Jul-16-2019	Jul-15-2020	$	50,000	$	(3,276)	1.7165	%	One-month L	Jan-15-2025

Schedule of interest rate swaps

The following table summarizes the fair value of the interest rate swaps outstanding as of September 30, 2020 and December 31, 2019.

Balance Sheet Line Item (in thousands)	Notional Amount September 30, 2020		Fair Value September 30, 2020		Notional Amount December 31, 2019		Fair Value December 31, 2019
Interest rate swaps-Asset	$	—	$	—	$	250,000	$	303
Interest rate swaps-Liability	$	1,125,000	$	(45,812)	$	850,000	$	(18,819)

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 in the consolidated financial statements for the three and nine months ended September 30, 2020 and 2019.

	Three months ended September 30,				Nine months ended September 30,
Effect of Cash Flow Hedge Accounting (in thousands)	2020		2019		2020		2019
Income (loss) recognized in accumulated other comprehensive loss on interest rate swaps	$	169	$	(5,913)	$	(36,167)	$	(26,715)
Income (loss) reclassified from accumulated other comprehensive loss into income as interest expense	$	(4,758)	$	522	$	(8,894)	$	2,726
Total interest expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded	$	15,928	$	14,053	$	46,125	$	39,080

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

The following table summarizes the Company’s financial instruments that are accounted for at fair value on a recurring basis as of September 30, 2020 and December 31, 2019. 

			Fair Value Measurements as of September 30, 2020 Using
Balance Sheet Line Item (in thousands)	Fair Value September 30, 2020		Level 1		Level 2		Level 3
Interest rate swaps-Asset	$	—	$	—	$	—	$	—
Interest rate swaps-Liability	$	(45,812)	$	—	$	(45,812)	$	—

			Fair Value Measurements as of December 31, 2019 Using
Balance Sheet Line Item (in thousands)	Fair Value December 31, 2019		Level 1		Level 2		Level 3
Interest rate swaps-Asset	$	303	$	—	$	303	$	—
Interest rate swaps-Liability	$	(18,819)	$	—	$	(18,819)	$	—

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Equity (Tables)

9 Months Ended

Sep. 30, 2020

Stockholders' Equity Note [Abstract]

Schedule of Stock by Class

The following table summarizes the Company’s outstanding preferred stock issuances as of September 30, 2020.

Preferred Stock Issuances	Issuance Date	Number of Shares	Liquidation Value Per Share		Interest Rate
6.875% Series C Cumulative Redeemable Preferred Stock ("Series C Preferred Stock")	March 17, 2016	3,000,000	$	25.00	6.875	%

Dividends Declared [Table Text Block]

The following tables summarize the dividends attributable to the Company’s outstanding preferred stock issuances during the nine months ended September 30, 2020 and the year ended December 31, 2019.

Quarter Ended 2020	Declaration Date	Series C Preferred Stock Per Share		Payment Date
September 30	July 9, 2020	$	0.4296875	September 30, 2020
June 30	April 9, 2020	0.4296875		June 30, 2020
March 31	January 8, 2020	0.4296875		March 31, 2020
Total		$	1.2890625

Quarter Ended 2019	Declaration Date	Series C Preferred Stock Per Share		Payment Date
December 31	October 15, 2019	$	0.4296875	December 31, 2019
September 30	July 15, 2019	0.4296875		September 30, 2019
June 30	April 9, 2019	0.4296875		July 1, 2019
March 31	January 10, 2019	0.4296875		April 1, 2019
Total		$	1.7187500

On October 9, 2020, the Company’s board of directors declared the Series C Preferred Stock dividends for the quarter ending December 31, 2020 at a quarterly rate of $0.4296875 per share.

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 September 30, 2020.

ATM Common Stock Offering Program	Date	Maximum Aggregate Offering Price (in thousands)		Aggregate Common Stock Available as of September 30, 2020 (in thousands)
2019 $600 million ATM	February 14, 2019	$	600,000	$	318,248

The table below summarizes the activity under the ATM common stock offering program during the year ended December 31, 2019 (in thousands, except share data). There was no activity under the ATM common stock offering program during the nine months ended September 30, 2020.

	Year ended December 31, 2019
ATM Common Stock Offering Program	Shares Sold	Weighted Average Price Per Share		Net Proceeds
2019 $600 million ATM	9,711,706	$	29.01	$	279,156
Total/weighted average	9,711,706	$	29.01	$	279,156

On January 13, 2020, the Company completed an underwritten public offering of an aggregate 10,062,500 shares of common stock at a price to the underwriters of $30.9022 per share, consisting of (i) 5,600,000 shares offered directly by the Company and (ii) 4,462,500 shares offered by the forward dealer in connection with certain forward sale agreements (including 1,312,500 shares offered pursuant to the underwriters’ option to purchase additional shares, which option was exercised in full). The offering closed on January 16, 2020 and the Company received net proceeds from the sale of shares offered directly by the Company of approximately $173.1 million. Subject to the Company’s right to elect cash or net share settlement, the Company has the ability to settle the forward sales agreements at any time through scheduled maturity date of the forward sale agreements of January 13, 2021.

Common Stock Dividends Declared [Table Text Block]

The following tables summarize the dividends attributable to the Company’s outstanding shares of common stock that were declared during the nine months ended September 30, 2020 and the year ended December 31, 2019.

Month Ended 2020	Declaration Date	Record Date	Per Share		Payment Date
September 30	July 9, 2020	September 30, 2020	$	0.12	October 15, 2020
August 31	July 9, 2020	August 31, 2020	0.12		September 15, 2020
July 31	July 9, 2020	July 31, 2020	0.12		August 17, 2020
June 30	April 9, 2020	June 30, 2020	0.12		July 15, 2020
May 31	April 9, 2020	May 29, 2020	0.12		June 15, 2020
April 30	April 9, 2020	April 30, 2020	0.12		May 15, 2020
March 31	January 8, 2020	March 31, 2020	0.12		April 15, 2020
February 29	January 8, 2020	February 28, 2020	0.12		March 16, 2020
January 31	January 8, 2020	January 31, 2020	0.12		February 18, 2020
Total			$	1.08

Month Ended 2019	Declaration Date	Record Date	Per Share		Payment Date
December 31	October 15, 2019	December 31, 2019	$	0.119167	January 15, 2020
November 30	October 15, 2019	November 29, 2019	0.119167		December 16, 2019
October 31	October 15, 2019	October 31, 2019	0.119167		November 15, 2019
September 30	July 15, 2019	September 30, 2019	0.119167		October 15, 2019
August 31	July 15, 2019	August 30, 2019	0.119167		September 16, 2019
July 31	July 15, 2019	July 31, 2019	0.119167		August 15, 2019
June 30	April 9, 2019	June 28, 2019	0.119167		July 15, 2019
May 31	April 9, 2019	May 31, 2019	0.119167		June 17, 2019
April 30	April 9, 2019	April 30, 2019	0.119167		May 15, 2019
March 31	January 10, 2019	March 29, 2019	0.119167		April 15, 2019
February 28	January 10, 2019	February 28, 2019	0.119167		March 15, 2019
January 31	January 10, 2019	January 31, 2019	0.119167		February 15, 2019
Total			$	1.430004

On October 9, 2020, the Company’s board of directors declared the common stock dividends for the months ending October 31, 2020, November 30, 2020, and December 31, 2020 at a monthly rate of $0.12 per share of common stock.

Schedule of activity related to unvested restricted stock awards

The following table summarizes activity related to the Company’s unvested restricted shares of common stock for the nine months ended September 30, 2020 and the year ended December 31, 2019.

Unvested Restricted Shares of Common Stock	Shares
Balance at December 31, 2018	190,462
Granted	110,830	(1)
Vested	(101,109)	(2)
Forfeited	(7,138)
Balance at December 31, 2019	193,045
Granted	75,419	(1)
Vested	(78,010)	(2)
Forfeited	(1,376)
Balance at September 30, 2020	189,078

(1)The fair value per share on the grant date of February 13, 2020, January 8, 2020, and January 7, 2019 was $32.64, $31.49, and $24.85, respectively.

(2)The Company repurchased and retired 33,119 and 28,504 restricted shares of common stock that vested during the nine months ended September 30, 2020 and the year ended December 31, 2019, 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 nine months ended September 30, 2020 and 2019.

	Three months ended September 30,				Nine months ended September 30,
Vested Restricted Shares of Common Stock	2020		2019		2020		2019
Vested restricted shares of common stock	—		—		78,010		78,431
Fair value of vested restricted shares of common stock (in thousands)	$	—	$	—	$	2,463	$	1,951

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Noncontrolling Interest (Tables)

9 Months Ended

Sep. 30, 2020

Noncontrolling Interest [Abstract]

Noncontrolling interest activity

The following table summarizes the activity for noncontrolling interest in the Company for the nine months ended September 30, 2020 and the year ended December 31, 2019.

Noncontrolling Interest	LTIP Units	Other Common Units	Total Noncontrolling Common Units	Noncontrolling Interest
Balance at December 31, 2018	1,616,200	2,453,234	4,069,434	3.5	%
Granted/Issued	364,173	—	364,173	N/A
Forfeited	(16,618)	—	(16,618)	N/A
Conversions from LTIP units to Other Common Units	(266,397)	266,397	—	N/A
Redemptions from Other Common Units to common stock	—	(680,137)	(680,137)	N/A
Balance at December 31, 2019	1,697,358	2,039,494	3,736,852	2.5	%
Granted/Issued	278,806	—	278,806	N/A
Forfeited	—	—	—	N/A
Conversions from LTIP units to Other Common Units	(283,741)	283,741	—	N/A
Redemptions from Other Common Units to common stock	—	(730,104)	(730,104)	N/A
Balance at September 30, 2020	1,692,423	1,593,131	3,285,554	2.2	%

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

The following table summarizes the assumptions used in valuing such LTIP units granted during the nine months ended September 30, 2020 (excluding those LTIP units granted pursuant to the January 6, 2017 performance units; refer to Note 8 for details).

LTIP Units	Assumptions
Grant date	January 8, 2020
Expected term (years)	10
Expected volatility	18.0		%
Expected dividend yield	5.75		%
Risk-free interest rate	1.61		%
Fair value of LTIP units at issuance (in thousands)	$	4,030
LTIP units at issuance	136,741
Fair value unit price per LTIP unit at issuance	$	29.47

Schedule of activity related to unvested LTIP unit awards

The following table summarizes activity related to the Company’s unvested LTIP units for the nine months ended September 30, 2020 and the year ended December 31, 2019.

Unvested LTIP Units	LTIP Units
Balance at December 31, 2018	251,216
Granted	364,173
Vested	(371,423)
Forfeited	(16,618)
Balance at December 31, 2019	227,348
Granted	278,806
Vested	(201,442)
Forfeited	—
Balance at September 30, 2020	304,712

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 nine months ended September 30, 2020 and 2019.

	Three months ended September 30,				Nine months ended September 30,
Vested LTIP units	2020		2019		2020		2019
Vested LTIP units	27,297		29,989		201,442		234,330
Fair value of vested LTIP units (in thousands)	$	832	$	884	$	5,906	$	6,348

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Equity Incentive Plan (Tables)

9 Months Ended

Sep. 30, 2020

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 nine months ended September 30, 2020.

Performance Units	Assumptions
Grant date	January 8, 2020
Expected volatility	17.4		%
Expected dividend yield	5.75		%
Risk-free interest rate	1.59		%
Fair value of performance units grant (in thousands)	$	5,389

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 nine months ended September 30, 2020 and 2019.

	Three months ended September 30,				Nine months ended September 30,
Non-Cash Compensation Expense (in thousands)	2020		2019		2020		2019
Restricted shares of common stock	$	487	$	447	$	1,435	$	1,318
LTIP units	981		901		2,923		2,687
Performance units	1,356		1,107		4,004		3,062
Director compensation (1)	122		101		374		304
Total non-cash compensation expense	$	2,946	$	2,556	$	8,736	$	7,371

(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 nine months ended September 30, 2020 and 2019. The number of shares of common stock granted is calculated based on the trailing ten days average common stock price ending on the third business day preceding the grant date.

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Leases (Tables)

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Operating Lease, Lease Income [Table Text Block]

The following table summarizes the components of rental income recognized during the three and nine months ended September 30, 2020 and 2019 included in the accompanying Consolidated Statements of Operations.

	Three months ended September 30,				Nine months ended September 30,
Rental Income (in thousands)	2020		2019		2020		2019
Fixed lease payments	$	92,120	$	80,262	$	273,750	$	227,337
Variable lease payments	23,757		20,189		74,351		61,628
Straight-line rental income	2,852		3,091		8,602		8,667
Net decrease to rental income related to above and below market lease amortization	(1,482)		(1,248)		(3,646)		(3,361)
Total rental income	$	117,247	$	102,294	$	353,057	$	294,271

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 September 30, 2020.

Year	Maturity of Fixed Lease Payments (in thousands)
Remainder of 2020	$	92,565
2021	$	362,825
2022	$	327,365
2023	$	284,041
2024	$	240,067
Thereafter	$	911,977

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 September 30, 2020 and December 31, 2019.

Operating Lease Term and Discount Rate	September 30, 2020		December 31, 2019
Weighted average remaining lease term (years)	28.9		36.0
Weighted average discount rate	6.8	%	7.1	%

The following table summarizes the operating lease cost recognized during the three and nine months ended September 30, 2020 and 2019 included in the Company’s Consolidated Statements of Operations.

	Three months ended September 30,				Nine months ended September 30,
Operating Lease Cost (in thousands)	2020		2019		2020		2019
Operating lease cost included in property expense attributable to ground leases	$	345	$	331	$	1,007	$	993
Operating lease cost included in general and administrative expense attributable to corporate office lease	424		266		1,165		799
Total operating lease cost	$	769	$	597	$	2,172	$	1,792

The following table summarizes supplemental cash flow information related to operating leases recognized during the nine months ended September 30, 2020 and 2019 in the Company’s Consolidated Statements of Cash Flows.

	Nine months ended September 30,
Operating Leases (in thousands)	2020		2019
Cash paid for amounts included in the measurement of lease liabilities (operating cash flows)	$	1,728	$	1,711
Right-of-use assets obtained in exchange for new lease liabilities	$	7,718	$	—

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 lease as of September 30, 2020.

Year	Maturity of Operating Lease Liabilities(1) (in thousands)
Remainder of 2020	$	606
2021	2,222
2022	3,100
2023	3,153
2024	3,196
Thereafter	59,245
Total lease payments	71,522
Less: Imputed interest	(45,108)
Present value of operating lease liabilities	$	26,414

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

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2020

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 common share for the three and nine months ended September 30, 2020 and 2019.

	Three months ended September 30,				Nine months ended September 30,
Earnings Per Share (in thousands, except per share data)	2020		2019		2020		2019
Numerator
Net income attributable to common stockholders	$	22,386	$	9,533	$	102,021	$	27,734
Denominator
Weighted average common shares outstanding — basic	148,997		127,272		148,412		122,460
Effect of dilutive securities(1)
Share-based compensation	675		178		375		254
Shares issuable under forward sales agreements	233		19		78		6
Weighted average common shares outstanding — diluted	149,905		127,469		148,865		122,720
Net income per share — basic and diluted
Net income per share attributable to common stockholders — basic	$	0.15	$	0.07	$	0.69	$	0.23
Net income per share attributable to common stockholders — diluted	$	0.15	$	0.07	$	0.69	$	0.23

(1)During the three and nine months ended September 30, 2020 and 2019, there were 189, 187, 220 and 218, unvested shares of restricted common stock, respectively, on a weighted average basis 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	9 Months Ended
	Jun. 30, 2020	Sep. 30, 2020 ft² building state
Real Estate Properties [Line Items]
Number of properties		462
Number of states in which the entity owned buildings | state		38
Area (in square feet) | ft²		92.3
STAG Industrial, Inc. [Member]
Real Estate Properties [Line Items]
Ownership interest in Operating Partnership (as a percent)	97.50%	97.80%
Warehouse - Distribution buildings
Real Estate Properties [Line Items]
Number of properties		384
Light Manufacturing buildings
Real Estate Properties [Line Items]
Number of properties		70
Flex/Office Buildings
Real Estate Properties [Line Items]
Number of properties		8

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Organization, Consolidation and Presentation of Financial Statements - COVID-19 Pandemic (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Rent Deferrals Granted	$ 0.4	$ 1.9

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Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Cash and cash equivalents	$ 70,137	$ 9,041
Restricted cash	4,623	2,823
Cash and cash equivalents and restricted cash—end of period	$ 74,760	$ 11,864	$ 9,273	$ 22,542

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Summary of Significant Accounting Policies - Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Business Acquisition [Line Items]
Net income	$ 24,209,000	$ 11,190,000	$ 108,563,000	$ 32,749,000
State and local income, excise and franchise taxes	400,000	300,000	1,300,000	900,000
Liabilities for uncertain tax positions	0		0		$ 0
Real Estate Investment Trust
Business Acquisition [Line Items]
Net income	$ 0	$ 0	$ 0	$ 300,000

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Rental Property - Summary (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Property Subject to or Available for Operating Lease [Line Items]
Rental property, net	$ 4,050,955	$ 3,998,507
Deferred leasing intangible assets, accumulated amortization	264,262	241,304
Land
Property Subject to or Available for Operating Lease [Line Items]
Rental property, net	447,356	435,923
Buildings, net of accumulated depreciation of $311,326 and $254,458, respectively
Property Subject to or Available for Operating Lease [Line Items]
Rental property, net	2,862,026	2,787,234
Rental property, accumulated depreciation	311,326	254,458
Tenant improvements, net of accumulated depreciation of $23,641 and $21,487, respectively
Property Subject to or Available for Operating Lease [Line Items]
Rental property, net	39,495	38,339
Rental property, accumulated depreciation	23,641	21,487
Building and land improvements, net of accumulated depreciation of $138,402 and $111,688, respectively
Property Subject to or Available for Operating Lease [Line Items]
Rental property, net	243,807	232,456
Rental property, accumulated depreciation	138,402	111,688
Construction in progress
Property Subject to or Available for Operating Lease [Line Items]
Rental property, net	19,225	29,406
Deferred leasing intangibles, net of accumulated amortization of $264,262 and $241,304, respectively
Property Subject to or Available for Operating Lease [Line Items]
Rental property, net	$ 439,046	$ 475,149

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Rental Property - Acquisitions (Details) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2020 USD ($) ft² building	Jun. 30, 2020 USD ($) ft² building	Mar. 31, 2020 USD ($) ft² building	Sep. 30, 2020 USD ($) ft² building
Business Acquisition [Line Items]
Area (in square feet)	92,300,000			92,300,000
Acquisitions 2020
Business Acquisition [Line Items]
Area (in square feet)	2,351,350			2,351,350
Number of properties | building				16
Business Combination, Consideration Transferred | $				$ 195,939
Acquistions Q1 2020
Business Acquisition [Line Items]
Area (in square feet)			1,599,389
Number of properties | building			9
Business Combination, Consideration Transferred | $			$ 119,343
Canton, MI - 1-10-20
Business Acquisition [Line Items]
Area (in square feet)			491,049
Number of properties | building			1
Business Combination, Consideration Transferred | $			$ 29,543
Rochester, NY - 1-10-20
Business Acquisition [Line Items]
Area (in square feet)			124,850
Number of properties | building			1
Business Combination, Consideration Transferred | $			$ 8,565
Hudson, WI - 2-6-20
Business Acquisition [Line Items]
Area (in square feet)			139,875
Number of properties | building			1
Business Combination, Consideration Transferred | $			$ 10,460
McClellan, CA - 2-6-20
Business Acquisition [Line Items]
Area (in square feet)			160,534
Number of properties | building			1
Business Combination, Consideration Transferred | $			$ 18,468
Richmond, VA - 2-6-20
Business Acquisition [Line Items]
Area (in square feet)			78,128
Number of properties | building			1
Business Combination, Consideration Transferred | $			$ 5,481
Muskego, WI - 2-7-20
Business Acquisition [Line Items]
Area (in square feet)			81,230
Number of properties | building			1
Business Combination, Consideration Transferred | $			$ 7,219
Warren, MI - 2-11-20
Business Acquisition [Line Items]
Area (in square feet)			311,123
Number of properties | building			1
Business Combination, Consideration Transferred | $			$ 23,141
Langhorne, PA - 3-9-20
Business Acquisition [Line Items]
Area (in square feet)			78,000
Number of properties | building			1
Business Combination, Consideration Transferred | $			$ 6,571
Tulsa, OK - 3-9-20
Business Acquisition [Line Items]
Area (in square feet)			134,600
Number of properties | building			1
Business Combination, Consideration Transferred | $			$ 9,895
Acquisitions Q2 2020
Business Acquisition [Line Items]
Area (in square feet)		122,280
Number of properties | building		2
Business Combination, Consideration Transferred | $		$ 11,914
Rancho Cordova, CA 6-11-20
Business Acquisition [Line Items]
Area (in square feet)		54,463
Number of properties | building		1
Business Combination, Consideration Transferred | $		$ 5,730
Schaumburg, IL 6-29-20
Business Acquisition [Line Items]
Area (in square feet)		67,817
Number of properties | building		1
Business Combination, Consideration Transferred | $		$ 6,184
Acquisitions Q3 2020
Business Acquisition [Line Items]
Area (in square feet)	629,681			629,681
Number of properties | building	5
Business Combination, Consideration Transferred | $	$ 64,682
Mount Laurel, NJ - 8-31-20
Business Acquisition [Line Items]
Area (in square feet)	112,294			112,294
Number of properties | building	1
Business Combination, Consideration Transferred | $	$ 8,427
Clinton, PA - 9-3-20
Business Acquisition [Line Items]
Area (in square feet)	125,000			125,000
Number of properties | building	1
Business Combination, Consideration Transferred | $	$ 15,580
Clinton, PA - 9-24-20
Business Acquisition [Line Items]
Area (in square feet)	66,387			66,387
Number of properties | building	1
Business Combination, Consideration Transferred | $	$ 6,685
Charlotte, NC - 9-28-20
Business Acquisition [Line Items]
Area (in square feet)	50,000			50,000
Number of properties | building	1
Business Combination, Consideration Transferred | $	$ 5,729
Twinsburg, OH - 9-30-20
Business Acquisition [Line Items]
Area (in square feet)	276,000			276,000
Number of properties | building	1
Business Combination, Consideration Transferred | $	$ 28,261

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Rental Property - Acquisitions - Allocation of Consideration (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Allocation of the consideration paid for the acquired assets and liabilities
Land	$ 15,338
Buildings	135,570
Tenant improvements	2,096
Building and land improvements	8,895
Other assets	450
Operating lease right-of-use assets	24,124	$ 15,129
Total purchase price	195,939
Operating lease liabilities	(26,414)	$ (16,989)
Acquisitions 2020
Allocation of the consideration paid for the acquired assets and liabilities
Operating lease right-of-use assets	2,321
Operating lease liabilities	(2,321)
Construction in progress
Allocation of the consideration paid for the acquired assets and liabilities
Construction in progress	669
In-place leases
Allocation of the consideration paid for the acquired assets and liabilities
Deferred leasing intangibles	$ (21,496)
Weighted average amortization period of lease intangibles	8 years
Tenant relationships
Allocation of the consideration paid for the acquired assets and liabilities
Deferred leasing intangibles	$ (10,150)
Weighted average amortization period of lease intangibles	11 years 1 month 6 days
Above market leases
Allocation of the consideration paid for the acquired assets and liabilities
Deferred leasing intangibles	$ (3,962)
Weighted average amortization period of lease intangibles	12 years 7 months 6 days
Below market leases
Allocation of the consideration paid for the acquired assets and liabilities
Deferred leasing intangibles	$ 2,687
Weighted average amortization period of lease intangibles	5 years 3 months 18 days

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Rental Property - Acquisitions - Results of Operations (Details) - Acquisitions 2020 - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020
Business Acquisition [Line Items]
Revenue	$ 3,298	$ 8,046
Net income (loss)	$ 601	$ 1,462

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Rental Property - Disposals (Details) ft² in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020 USD ($) ft² building	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($) ft² building	Sep. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of buildings disposed | building	462		462
Area (in square feet) | ft²	92.3		92.3
Carrying value of property sold	$ 4,050,955,000		$ 4,050,955,000		$ 3,998,507,000
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	5		5
Area (in square feet) | ft²	1.7		1.7
Carrying value of property sold	$ 64,400,000		$ 64,400,000
Contribution to revenue	100,000	$ 1,300,000	800,000	$ 4,500,000
Disposal Group, Including Discontinued Operation, Operating Income (Loss)	$ (300,000)	$ (200,000)	(400,000)	$ 300,000
Net proceeds from sales of rental property			121,300,000
Gain (Loss) on Sale			$ 56,900,000

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Rental Property - Loss on Impairments (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020 USD ($) building	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($) building
Impaired Assets to be Disposed of by Method Other than Sale [Line Items]
Number of Buildings Impaired | building	1			6
Fair Value Inputs Exit Capitalization Rate	10.00%
Fair Value Inputs, Discount Rates	10.50%
Fair Value, Nonrecurring
Impaired Assets to be Disposed of by Method Other than Sale [Line Items]
Property, Plant, and Equipment, Fair Value Disclosure	$ 5,019		$ 5,019
Operating Income (Loss) [Member]
Impaired Assets to be Disposed of by Method Other than Sale [Line Items]
Impairment of Real Estate	$ 3,172	$ 4,400	$ 3,172	$ 9,800

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Rental Property - Gain on Involuntary Conversion (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Gain on involuntary conversion	$ 1,500	$ 0	$ 2,157	$ 0
Operating Income (Loss) [Member]
Gain on involuntary conversion	$ 1,500		$ 2,200

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Rental Property - Deferred Leasing Intangibles (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Deferred leasing intangibles, gross	$ 703,308		$ 703,308		$ 716,453
Deferred leasing intangibles assets, accumulated amortization	(264,262)		(264,262)		(241,304)
Deferred leasing intangibles, net	439,046		439,046		475,149
Below market lease, gross	39,167		39,167		38,802
Below market lease, accumulated amortization	(14,176)		(14,176)		(12,064)
Below market lease, net	24,991		24,991		26,738
Net decrease to rental income related to above and below market lease amortization	1,482	$ 1,248	3,646	$ 3,361
Above market leases
Finite-Lived Intangible Assets [Line Items]
Deferred leasing intangibles, gross	93,002		93,002		92,607
Deferred leasing intangibles assets, accumulated amortization	(36,711)		(36,711)		(32,115)
Deferred leasing intangibles, net	56,291		56,291		60,492
Other intangible lease assets
Finite-Lived Intangible Assets [Line Items]
Deferred leasing intangibles, gross	610,306		610,306		623,846
Deferred leasing intangibles assets, accumulated amortization	(227,551)		(227,551)		(209,189)
Deferred leasing intangibles, net	382,755		382,755		$ 414,657
Amortization expense related to other intangible lease assets	21,780	$ 18,472	63,158	$ 53,185
Estimated Net Amortization of In-Place Leases, Leasing Commissions and Tenant Relationships
Remainder of 2020	18,290		18,290
2021	65,614		65,614
2022	56,254		56,254
2023	47,759		47,759
2024	38,947		38,947
Net decrease to rental income related to above and below market lease amortization
Estimated Net Amortization of In-Place Leases, Leasing Commissions and Tenant Relationships
Remainder of 2020	859		859
2021	2,764		2,764
2022	2,298		2,298
2023	2,504		2,504
2024	$ 2,812		$ 2,812

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Debt - Summary (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020 USD ($) extention	Mar. 19, 2021	Apr. 17, 2020 USD ($) extention	Dec. 31, 2019 USD ($)
Debt Instrument [Line Items]
Long-term debt, gross	$ 1,602,600			$ 1,651,085
Unamortized debt issuance costs	(6,389)			(6,111)
Unamortized fair market value premium	31			39
Principal outstanding	$ 1,596,242			1,645,013
Weighted average interest rate	3.62%
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	0.14825%
Term Loan | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.00%
$300 Million Unsecured Term Loan [Member]
Debt Instrument [Line Items]
Long-term debt, gross			$ 300,000
Number Of Extensions | extention			2
Debt Instrument Term Extension Period	1 year
$300 Million Unsecured Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.50%
$300 Million Unsecured Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.25%
Unsecured Credit Facility
Debt Instrument [Line Items]
Principal outstanding	$ 0			146,000
Debt Instrument, Maturity Date	Jan. 12, 2024
Maximum borrowing capacity	$ 500,000
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	$ (1,800)			(2,400)
Unsecured Credit Facility | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.90%
Unsecured Term Loans
Debt Instrument [Line Items]
Long-term debt, gross	$ 975,000			875,000
Unamortized debt issuance costs	(4,304)			(3,625)
Principal outstanding	970,696			871,375
Unsecured Term Loans | $150 Million Wells Fargo Unsecured Term Loan C
Debt Instrument [Line Items]
Long-term debt, gross	$ 0			150,000
Debt Instrument, Interest Rate, Effective Percentage	2.39%
Debt Instrument, Maturity Date	Sep. 29, 2020
Unsecured Term Loans | $150 Million Wells Fargo Unsecured Term Loan B
Debt Instrument [Line Items]
Long-term debt, gross	$ 0			150,000
Debt Instrument, Interest Rate, Effective Percentage	3.05%
Debt Instrument, Maturity Date	Mar. 21, 2021
Unsecured Term Loans | $150 Million Wells Fargo Unsecured Term Loan A
Debt Instrument [Line Items]
Long-term debt, gross	$ 150,000			150,000
Debt Instrument, Interest Rate, Effective Percentage	3.38%
Debt Instrument, Maturity Date	Mar. 31, 2022
Fixed Interest Rate (as a percent)	2.38%
Unsecured Term Loans | $150 Million Unsecured Term Loan D [Member]
Debt Instrument [Line Items]
Long-term debt, gross	$ 150,000			150,000
Debt Instrument, Interest Rate, Effective Percentage	2.85%
Debt Instrument, Maturity Date	Jan. 04, 2023
Fixed Interest Rate (as a percent)	1.85%
Unsecured Term Loans | $300 Million Unsecured Term Loan [Member]
Debt Instrument [Line Items]
Long-term debt, gross	$ 300,000			0
Debt Instrument, Interest Rate, Effective Percentage	2.77%
Debt Instrument, Maturity Date	Apr. 18, 2023
Fixed Interest Rate (as a percent)	1.17%
Unsecured Term Loans | $300 Million Unsecured Term Loan [Member] | Scenario, Forecast [Member]
Debt Instrument [Line Items]
Fixed Interest Rate (as a percent)		0.28%
Unsecured Term Loans | $175 Million Unsecured Term Loan E [Member]
Debt Instrument [Line Items]
Long-term debt, gross	$ 175,000			175,000
Debt Instrument, Interest Rate, Effective Percentage	3.92%
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			100,000
Debt Instrument, Interest Rate, Effective Percentage	3.11%
Debt Instrument, Maturity Date	Jan. 12, 2025
Fixed Interest Rate (as a percent)	2.11%
Unsecured Notes
Debt Instrument [Line Items]
Long-term debt, gross	$ 575,000			575,000
Unamortized debt issuance costs	(1,819)			(2,117)
Principal outstanding	573,181			572,883
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
Mortgage Loans Payable
Debt Instrument [Line Items]
Long-term debt, gross	$ 52,600			55,085
Unamortized debt issuance costs	(266)			(369)
Unamortized fair market value premium	31			39
Principal outstanding	52,365			54,755
Mortgage Loans Payable | Wells Fargo Bank, National Association CMBS Loan
Debt Instrument [Line Items]
Long-term debt, gross	$ 49,013			51,406
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	$ 3,587			$ 3,679
Stated interest rate	4.78%
Debt Instrument, Maturity Date	Dec. 15, 2023
Penalty free prepayment period	3 months

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Debt - 2020 Activity (Details)				3 Months Ended			9 Months Ended
	Apr. 29, 2020 USD ($)	Apr. 17, 2020 USD ($) extention	Mar. 25, 2020 USD ($)	Sep. 30, 2020 USD ($) extention	Mar. 31, 2020	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($) extention	Sep. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)
Debt Instrument [Line Items]
Debt Instrument, Unused Borrowing Capacity, Amount				$ 497,000,000.0			$ 497,000,000.0
Line of Credit Facility, Accordion Feature, Increase Limit		$ 600,000,000.0
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				$ 82,300,000			$ 82,300,000		$ 85,500,000
Unsecured Credit Facility
Debt Instrument [Line Items]
Number Of Extensions | extention				2			2
Debt Instrument Term Extension Period							6 months
Accounts Payable and Accrued Liabilities [Member]
Debt Instrument [Line Items]
Interest payable				$ 7,800,000		$ 6,300,000	$ 7,800,000	$ 6,300,000
Interest Expense [Member]
Debt Instrument [Line Items]
Amortization of deferred financing fees				750,000		673,000	2,172,000	1,909,000
Line of Credit Facility, Commitment Fee Amount				$ 315,000		$ 348,000	995,000	$ 1,118,000
Wells Fargo Bank, National Association CMBS Loan | Johnstown, NY, Q4 2012, One [Member]
Debt Instrument [Line Items]
Extinguishment of Debt, Amount	$ 1,000,000.0
Write off of Deferred Debt Issuance Cost							$ 100,000
$300 Million Unsecured Term Loan [Member]
Debt Instrument [Line Items]
Write off of Deferred Debt Issuance Cost		$ 700,000
Number Of Extensions | extention		2
Debt Instrument Term Extension Period							1 year
First Extention Fee		0.15%
Second Extention Fee		0.0020
Debt Issuance Costs, Gross		$ 2,100,000
Deferred Financing Accrued Extension Fee		1,100,000
Debt Instrument, Fee Amount		$ 35,000
$200 Million Unsecured Term Loan F [Member]
Debt Instrument [Line Items]
Proceeds from Issuance of Debt			$ 100,000,000.0

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Debt - Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Long-term debt, gross	$ 1,602,600	$ 1,651,085
Unamortized fair market value premium	31	39
Unamortized debt issuance costs	(6,389)	(6,111)
Principal outstanding	1,596,242	1,645,013
Long-term debt, fair value	1,649,260	1,691,514
Unsecured Credit Facility
Debt Instrument [Line Items]
Principal outstanding	0	146,000
Long-term debt, fair value	0	146,000
Unsecured Term Loans
Debt Instrument [Line Items]
Long-term debt, gross	975,000	875,000
Unamortized debt issuance costs	(4,304)	(3,625)
Principal outstanding	970,696	871,375
Long-term debt, fair value	965,296	875,000
Unsecured Notes
Debt Instrument [Line Items]
Long-term debt, gross	575,000	575,000
Unamortized debt issuance costs	(1,819)	(2,117)
Principal outstanding	573,181	572,883
Long-term debt, fair value	628,955	614,493
Mortgage Loans Payable
Debt Instrument [Line Items]
Long-term debt, gross	52,600	55,085
Unamortized fair market value premium	31	39
Unamortized debt issuance costs	(266)	(369)
Principal outstanding	52,365	54,755
Long-term debt, fair value	$ 55,009	$ 56,021

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Derivative Financial Instruments - Risk Management and Unsecured Loan Swaps (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Interest Rate Swaps
Unsecured Term Loan Swaps
Notional amount assets	$ 0	$ 250,000
Notional amount liabilities	1,125,000	850,000
Notional amount liabilities	1,125,000	$ 850,000
Interest Rate Derivative, Royal Bank of Canada, March 20, 2015
Unsecured Term Loan Swaps
Notional amount liabilities	25,000
Derivative Liability, Fair Value, Gross Liability	$ (182)
Fixed Interest Rate (as a percent)	1.709%
Notional amount liabilities	$ 25,000
Derivative Liability, Fair Value, Gross Liability	$ (182)
Fixed Interest Rate (as a percent)	1.709%
Interest Rate Derivative, The Toronto-Dominion Bank, March 20, 2015
Unsecured Term Loan Swaps
Notional amount liabilities	$ 25,000
Derivative Liability, Fair Value, Gross Liability	$ (182)
Fixed Interest Rate (as a percent)	1.7105%
Notional amount liabilities	$ 25,000
Derivative Liability, Fair Value, Gross Liability	$ (182)
Fixed Interest Rate (as a percent)	1.7105%
Interest Rate Derivative, The Toronto-Dominion Bank, September 10, 2017
Unsecured Term Loan Swaps
Notional amount liabilities	$ 100,000
Derivative Liability, Fair Value, Gross Liability	$ (970)
Fixed Interest Rate (as a percent)	2.2255%
Notional amount liabilities	$ 100,000
Derivative Liability, Fair Value, Gross Liability	$ (970)
Fixed Interest Rate (as a percent)	2.2255%
Interest Rate Derivative, Wells Fargo Bank, March 20, 2015
Unsecured Term Loan Swaps
Notional amount liabilities	$ 25,000
Derivative Liability, Fair Value, Gross Liability	$ (639)
Fixed Interest Rate (as a percent)	1.828%
Notional amount liabilities	$ 25,000
Derivative Liability, Fair Value, Gross Liability	$ (639)
Fixed Interest Rate (as a percent)	1.828%
Interest Rate Derivative, The Toronto-Dominion Bank, February 14, 2020
Unsecured Term Loan Swaps
Notional amount liabilities	$ 25,000
Derivative Liability, Fair Value, Gross Liability	$ (874)
Fixed Interest Rate (as a percent)	2.4535%
Notional amount liabilities	$ 25,000
Derivative Liability, Fair Value, Gross Liability	$ (874)
Fixed Interest Rate (as a percent)	2.4535%
Interest Rate Derivative, Regions Bank, February 14, 2020
Unsecured Term Loan Swaps
Notional amount liabilities	$ 50,000
Derivative Liability, Fair Value, Gross Liability	$ (1,766)
Fixed Interest Rate (as a percent)	2.475%
Notional amount liabilities	$ 50,000
Derivative Liability, Fair Value, Gross Liability	$ (1,766)
Fixed Interest Rate (as a percent)	2.475%
Interest Rate Derivative, Capital One, February 14, 2020
Unsecured Term Loan Swaps
Notional amount liabilities	$ 50,000
Derivative Liability, Fair Value, Gross Liability	$ (1,808)
Fixed Interest Rate (as a percent)	2.53%
Notional amount liabilities	$ 50,000
Derivative Liability, Fair Value, Gross Liability	$ (1,808)
Fixed Interest Rate (as a percent)	2.53%
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	$ (979)
Fixed Interest Rate (as a percent)	1.8485%
Notional amount liabilities	$ 25,000
Derivative Liability, Fair Value, Gross Liability	$ (979)
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	$ (980)
Fixed Interest Rate (as a percent)	1.8505%
Notional amount liabilities	$ 25,000
Derivative Liability, Fair Value, Gross Liability	$ (980)
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	$ (980)
Fixed Interest Rate (as a percent)	1.8505%
Notional amount liabilities	$ 25,000
Derivative Liability, Fair Value, Gross Liability	$ (980)
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	$ (978)
Fixed Interest Rate (as a percent)	1.8485%
Notional amount liabilities	$ 25,000
Derivative Liability, Fair Value, Gross Liability	$ (978)
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	$ (1,956)
Fixed Interest Rate (as a percent)	1.8475%
Notional amount liabilities	$ 50,000
Derivative Liability, Fair Value, Gross Liability	$ (1,956)
Fixed Interest Rate (as a percent)	1.8475%
Interest Rate Derivative, TD Bank, $75m, Sep 29, 2020
Unsecured Term Loan Swaps
Notional amount liabilities	$ 75,000
Derivative Liability, Fair Value, Gross Liability	$ (272)
Fixed Interest Rate (as a percent)	0.275%
Notional amount liabilities	$ 75,000
Derivative Liability, Fair Value, Gross Liability	$ (272)
Fixed Interest Rate (as a percent)	0.275%
Interest Rate Derivative, Wells Fargo Bank, $75m, Sep 29, 2020
Unsecured Term Loan Swaps
Notional amount liabilities	$ 75,000
Derivative Liability, Fair Value, Gross Liability	$ (279)
Fixed Interest Rate (as a percent)	0.279%
Notional amount liabilities	$ 75,000
Derivative Liability, Fair Value, Gross Liability	$ (279)
Fixed Interest Rate (as a percent)	0.279%
Interest Rate Derivative, TD Bank, $75m, March 19, 2021
Unsecured Term Loan Swaps
Notional amount liabilities	$ 75,000
Derivative Liability, Fair Value, Gross Liability	$ (230)
Fixed Interest Rate (as a percent)	0.275%
Notional amount liabilities	$ 75,000
Derivative Liability, Fair Value, Gross Liability	$ (230)
Fixed Interest Rate (as a percent)	0.275%
Interest Rate Derivative, Wells Fargo Bank, $75m, March 19, 2021
Unsecured Term Loan Swaps
Notional amount liabilities	$ 75,000
Derivative Liability, Fair Value, Gross Liability	$ (239)
Fixed Interest Rate (as a percent)	0.28%
Notional amount liabilities	$ 75,000
Derivative Liability, Fair Value, Gross Liability	$ (239)
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	$ (4,568)
Fixed Interest Rate (as a percent)	2.918%
Notional amount liabilities	$ 50,000
Derivative Liability, Fair Value, Gross Liability	$ (4,568)
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	$ (4,568)
Fixed Interest Rate (as a percent)	2.919%
Notional amount liabilities	$ 50,000
Derivative Liability, Fair Value, Gross Liability	$ (4,568)
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	$ (4,568)
Fixed Interest Rate (as a percent)	2.919%
Notional amount liabilities	$ 50,000
Derivative Liability, Fair Value, Gross Liability	$ (4,568)
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	$ (2,284)
Fixed Interest Rate (as a percent)	2.919%
Notional amount liabilities	$ 25,000
Derivative Liability, Fair Value, Gross Liability	$ (2,284)
Fixed Interest Rate (as a percent)	2.919%
Interest Rate Derivative, Wells Fargo Bank, July 15, 2020 [Member]
Unsecured Term Loan Swaps
Notional amount liabilities	$ 50,000
Derivative Liability, Fair Value, Gross Liability	$ (4,412)
Fixed Interest Rate (as a percent)	2.246%
Notional amount liabilities	$ 50,000
Derivative Liability, Fair Value, Gross Liability	$ (4,412)
Fixed Interest Rate (as a percent)	2.246%
Interest Rate Derivative, US Bank, July 15, 2020 [Member]
Unsecured Term Loan Swaps
Notional amount liabilities	$ 50,000
Derivative Liability, Fair Value, Gross Liability	$ (4,411)
Fixed Interest Rate (as a percent)	2.2459%
Notional amount liabilities	$ 50,000
Derivative Liability, Fair Value, Gross Liability	$ (4,411)
Fixed Interest Rate (as a percent)	2.2459%
Interest Rate Derivative, Regions Bank, July 15, 2020 [Member]
Unsecured Term Loan Swaps
Notional amount liabilities	$ 50,000
Derivative Liability, Fair Value, Gross Liability	$ (4,411)
Fixed Interest Rate (as a percent)	2.2459%
Notional amount liabilities	$ 50,000
Derivative Liability, Fair Value, Gross Liability	$ (4,411)
Fixed Interest Rate (as a percent)	2.2459%
Interest Rate Derivative, Bank of Montreal, July 15, 2020
Unsecured Term Loan Swaps
Notional amount liabilities	$ 50,000
Derivative Liability, Fair Value, Gross Liability	$ (3,276)
Fixed Interest Rate (as a percent)	1.7165%
Notional amount liabilities	$ 50,000
Derivative Liability, Fair Value, Gross Liability	$ (3,276)
Fixed Interest Rate (as a percent)	1.7165%

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Derivative Financial Instruments - FV of Interest Rate Swaps (Details) - Interest Rate Swaps - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair value of the interest rate swaps outstanding
Notional amount assets	$ 0	$ 250,000
Fair value - assets	0	303
Notional amount liabilities	1,125,000	850,000
Fair Value - liabilities	$ (45,812)	$ (18,819)

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Derivative Financial Instruments - Cash Flow Hedges and Contingent Features (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
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	$ 15,928,000	$ 14,053,000	$ 46,125,000	$ 39,080,000
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	16,600,000		16,600,000
Income (loss) recognized in accumulated other comprehensive loss on interest rate swaps	169,000	(5,913,000)	(36,167,000)	(26,715,000)
Income (loss) reclassified from accumulated other comprehensive loss into income as interest expense	(4,758,000)	522,000	(8,894,000)	2,726,000
Total interest expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded	15,928,000	$ 14,053,000	46,125,000	$ 39,080,000
Assets Needed for Immediate Settlement, Aggregate Fair Value	$ 46,900,000		$ 46,900,000

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Derivative Financial Instruments - FV on Recurring Basis (Details) - Interest Rate Swaps - Fair value on recurring basis - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Assets (liabilities):
Interest rate swaps-Asset	$ 0	$ 303
Interest rate swaps-Liability	(45,812)	(18,819)
Level 1
Assets (liabilities):
Interest rate swaps-Asset	0	0
Interest rate swaps-Liability	0	0
Level 2
Assets (liabilities):
Interest rate swaps-Asset	0	303
Interest rate swaps-Liability	(45,812)	(18,819)
Level 3
Assets (liabilities):
Interest rate swaps-Asset	0	0
Interest rate swaps-Liability	$ 0	$ 0

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Equity - Preferred Stock (Details) - $ / shares		3 Months Ended							9 Months Ended	12 Months Ended
	Oct. 09, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Dec. 31, 2019
Class of Stock [Line Items]
Preferred Stock, Shares Authorized		20,000,000			20,000,000				20,000,000	20,000,000
Series C Preferred Stock
Class of Stock [Line Items]
Preferred Stock, Shares Issued		3,000,000			3,000,000				3,000,000	3,000,000
Preferred Stock, Liquidation Preference Per Share		$ 25.00			$ 25.00				$ 25.00	$ 25.00
Dividend rate (as a percent)									6.875%
Preferred Stock, Dividends Per Share, Declared		$ 0.4296875	$ 0.4296875	$ 0.4296875	$ 0.4296875	$ 0.4296875	$ 0.4296875	$ 0.4296875	$ 1.2890625	$ 1.7187500
Dividends Payable, Date Declared		Jul. 09, 2020	Apr. 09, 2020	Jan. 08, 2020	Oct. 15, 2019	Jul. 15, 2019	Apr. 09, 2019	Jan. 10, 2019
Dividends Payable, Date to be Paid		Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jul. 01, 2019	Apr. 01, 2019
Subsequent Event [Member] | Series C Preferred Stock
Class of Stock [Line Items]
Preferred Stock, Dividends Per Share, Declared	$ 0.4296875

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Equity - Common Stock ATM (Details) - USD ($) $ / shares in Units, $ in Thousands			9 Months Ended	12 Months Ended
	Jan. 16, 2020	Jan. 13, 2020	Sep. 30, 2020	Dec. 31, 2019
Class of Stock [Line Items]
Common Stock, Shares Authorized			300,000,000	300,000,000
Net proceeds from the sale of common stock	$ 173,100
Sale of Stock, Number of Shares Issued in Transaction		10,062,500
Shares Issued, Price Per Share		$ 30.9022
Warrant [Member]
Class of Stock [Line Items]
Sale of Stock, Number of Shares Issued in Transaction		4,462,500
Common Stock
Class of Stock [Line Items]
Sale of Stock, Number of Shares Issued in Transaction		5,600,000
At The Market Program 2019 $600 Million
Class of Stock [Line Items]
Common Stock Value Authorized under Stock Offering Program			$ 600,000
At The Market Program 2019 $600 Million | Common Stock
Class of Stock [Line Items]
Aggregate value of common stock available to be sold under the ATM			$ 318,248
Number of shares sold			0	9,711,706
Net proceeds from the sale of common stock				$ 279,156
Over-Allotment Option
Class of Stock [Line Items]
Sale of Stock, Number of Shares Issued in Transaction		1,312,500
Weighted Average | At The Market Program 2019 $600 Million | Common Stock
Class of Stock [Line Items]
Sale of Stock, Price Per Share				$ 29.01

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Equity - Common Stock Dividends (Details) - $ / shares		1 Months Ended																					9 Months Ended	12 Months Ended
	Oct. 09, 2020	Sep. 30, 2020	Aug. 31, 2020	Jul. 31, 2020	Jun. 30, 2020	May 31, 2020	Apr. 30, 2020	Mar. 31, 2020	Feb. 29, 2020	Jan. 31, 2020	Dec. 31, 2019	Nov. 30, 2019	Oct. 31, 2019	Sep. 30, 2019	Aug. 31, 2019	Jul. 31, 2019	Jun. 30, 2019	May 31, 2019	Apr. 30, 2019	Mar. 31, 2019	Feb. 28, 2019	Jan. 31, 2019	Sep. 30, 2020	Dec. 31, 2019
Class of Stock [Line Items]
Common Stock, Shares Authorized		300,000,000									300,000,000												300,000,000	300,000,000
Common Stock, Dividends, Per Share, Declared		$ 0.12	$ 0.12	$ 0.12	$ 0.12	$ 0.12	$ 0.12	$ 0.12	$ 0.12	$ 0.12	$ 0.119167	$ 0.119167	$ 0.119167	$ 0.119167	$ 0.119167	$ 0.119167	$ 0.119167	$ 0.119167	$ 0.119167	$ 0.119167	$ 0.119167	$ 0.119167	$ 1.08	$ 1.430004
Subsequent Event [Member]
Class of Stock [Line Items]
Common Stock, Dividends, Per Share, Declared	$ 0.12
Common Stock
Class of Stock [Line Items]
Dividends Payable, Date Declared		Jul. 09, 2020	Jul. 09, 2020	Jul. 09, 2020	Apr. 09, 2020	Apr. 09, 2020	Apr. 09, 2020	Jan. 08, 2020	Jan. 08, 2020	Jan. 08, 2020	Oct. 15, 2019	Oct. 15, 2019	Oct. 15, 2019	Jul. 15, 2019	Jul. 15, 2019	Jul. 15, 2019	Apr. 09, 2019	Apr. 09, 2019	Apr. 09, 2019	Jan. 10, 2019	Jan. 10, 2019	Jan. 10, 2019
Dividends Payable, Date to be Paid		Oct. 15, 2020	Sep. 15, 2020	Aug. 17, 2020	Jul. 15, 2020	Jun. 15, 2020	May 15, 2020	Apr. 15, 2020	Mar. 16, 2020	Feb. 18, 2020	Jan. 15, 2020	Dec. 16, 2019	Nov. 15, 2019	Oct. 15, 2019	Sep. 16, 2019	Aug. 15, 2019	Jul. 15, 2019	Jun. 17, 2019	May 15, 2019	Apr. 15, 2019	Mar. 15, 2019	Feb. 15, 2019

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Equity - Restricted Stock (Details) - Restricted stock - USD ($) $ / shares in Units, $ in Thousands				3 Months Ended		9 Months Ended		12 Months Ended
	Feb. 13, 2020	Jan. 08, 2020	Jan. 07, 2019	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Jan. 01, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	4 years	4 years
Shares
Unvested at beginning of period (in shares)						193,045	190,462	190,462
Granted (in shares)						75,419		110,830
Vested (in shares)				0	0	(78,010)	(78,431)	(101,109)
Forfeited (in shares)						(1,376)		(7,138)
Unvested at end of period (in shares)				189,078		189,078		193,045
Fair value of restricted stock per share at grant date	$ 32.64	$ 31.49	$ 24.85			$ 31.60
Stock Repurchased and Retired During Period, Shares						33,119		28,504
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value				$ 27.77		$ 27.77			$ 24.38
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value						23.11
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value						$ 26.15
Unrecognized compensation costs				$ 3,700		$ 3,700
Unrecognized compensation costs, period for recognition						2 years 6 months
Vested (in shares)				0	0	(78,010)	(78,431)	(101,109)
Fair value of shares vested				$ 0	$ 0	$ 2,463	$ 1,951

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Noncontrolling Interest - Summary (Details) - $ / shares		9 Months Ended	12 Months Ended
	Jan. 08, 2020	Sep. 30, 2020	Dec. 31, 2019	Jan. 01, 2020	Dec. 31, 2018
Limited Partner
Noncontrolling interest
Noncontrolling interest ownership percentage		2.20%	2.50%		3.50%
LTIP Units
Noncontrolling interest
stag_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageGrantDateFairValue		$ 23.49		$ 21.64
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 29.47	29.47
stag_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsConvertedWeightedAverageGrantDateFairValue		$ 18.27
Noncontrolling Interest - Unit holders in Operating Partnership
Noncontrolling interest
Units outstanding, balance at beginning of period (in units)		3,736,852	4,069,434
Granted/Issued		278,806	364,173
Forfeited		0	16,618
Conversions from LTIP units to Other Common Units		0	0
Redemptions from Other Common Units to common stock		730,104	680,137
Units outstanding, balance at end of period (in units)		3,285,554	3,736,852
LTIP Units | Noncontrolling Interest - Unit holders in Operating Partnership
Noncontrolling interest
Units outstanding, balance at beginning of period (in units)		1,697,358	1,616,200
Granted/Issued		278,806	364,173
Forfeited		0	16,618
Conversions from LTIP units to Other Common Units		283,741	266,397
Redemptions from Other Common Units to common stock		0	0
Units outstanding, balance at end of period (in units)		1,692,423	1,697,358
Other Common Units | Noncontrolling Interest - Unit holders in Operating Partnership
Noncontrolling interest
Units outstanding, balance at beginning of period (in units)		2,039,494	2,453,234
Granted/Issued		0	0
Forfeited		0	0
Conversions from LTIP units to Other Common Units		283,741	266,397
Redemptions from Other Common Units to common stock		730,104	680,137
Units outstanding, balance at end of period (in units)		1,593,131	2,039,494

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Noncontrolling Interest - LTIP FV Assumptions (Details) - LTIP Units - USD ($)		9 Months Ended	12 Months Ended
	Jan. 08, 2020	Sep. 30, 2020	Dec. 31, 2019
Assumptions
Expected term (years)	10 years
Expected volatility	18.00%
Expected dividend yield	5.75%
Risk-free interest rate	1.61%
Fair value of LTIP units at issuance (in thousands)	$ 4,030,000
Granted (in shares)	136,741	278,806	364,173
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 29.47	$ 29.47
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) - LTIP Units - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended		12 Months Ended
	Jan. 08, 2020	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Jan. 01, 2020
Units
Unvested at beginning of period (in shares)				227,348	251,216	251,216
Granted	136,741			278,806		364,173
Vested (in units)		(27,297)	(29,989)	(201,442)	(234,330)	(371,423)
Forfeited (in units)				0		(16,618)
Unvested at end of period (in shares)		304,712		304,712		227,348
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value		$ 27.06		$ 27.06			$ 23.37
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 29.47			29.47
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value				$ 26.23
Unrecognized compensation costs		$ 5,600		$ 5,600
Unrecognized compensation costs, period for recognition				2 years 4 months 24 days
Vested (in units)		27,297	29,989	201,442	234,330	371,423
Fair value of units vested		$ 832	$ 884	$ 5,906	$ 6,348

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Equity Incentive Plan - Performance Plan Assumptions (Details) - Performance shares $ in Thousands	Jan. 08, 2020 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	17.40%
Expected dividend yield	5.75%
Risk-free interest rate	1.59%
Fair value of performance units grant (in thousands)	$ 5,389

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Equity Incentive Plan - 2020 Activity (Details) - USD ($) $ in Millions				9 Months Ended	12 Months Ended
	Feb. 13, 2020	Jan. 08, 2020	Jan. 07, 2019	Sep. 30, 2020	Dec. 31, 2019
LTIP Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted		136,741		278,806	364,173
Unrecognized compensation costs				$ 5.6
Unrecognized compensation costs, period for recognition				2 years 4 months 24 days
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	4 years	4 years
Stock Repurchased and Retired During Period, Shares				33,119	28,504
Granted				75,419	110,830
Unrecognized compensation costs				$ 3.7
Unrecognized compensation costs, period for recognition				2 years 6 months
Performance shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs				$ 7.3
Unrecognized compensation costs, period for recognition				1 year 9 months 18 days
Performance Units Granted in 2017 [Domain]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			1 year
Performance Units Granted in 2017 [Domain] | LTIP Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of vested LTIP units and shares		76,096
Stock Repurchased and Retired During Period, Shares		18,241
Granted		65,969
Performance Units Granted in 2017 [Domain] | Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of vested LTIP units and shares		46,376
Performance Units Granted in 2017 [Domain] | Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted		3,398

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Equity Incentive Plan - Equity Non-cash Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
General and Administrative Expenses
Equity Incentive Plan
Share-based compensation	$ 2,946	$ 2,556	$ 8,736	$ 7,371
Restricted stock | General and Administrative Expenses
Equity Incentive Plan
Share-based compensation	487	447	1,435	1,318
LTIP Units | General and Administrative Expenses
Equity Incentive Plan
Share-based compensation	981	901	2,923	2,687
Performance shares | General and Administrative Expenses
Equity Incentive Plan
Share-based compensation	1,356	1,107	4,004	3,062
Independent Director | General and Administrative Expenses
Equity Incentive Plan
Share-based compensation	$ 122	$ 101	$ 374	$ 304
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		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Leases [Abstract]
Fixed lease payments	$ 92,120	$ 80,262	$ 273,750	$ 227,337
Variable lease payments	23,757	20,189	74,351	61,628
Straight-line rental income	2,852	3,091	8,602	8,667
Net decrease to rental income related to above and below market lease amortization	(1,482)	(1,248)	(3,646)	(3,361)
Rental income	$ 117,247	$ 102,294	$ 353,057	$ 294,271

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Leases - Tenant Accounts Receivable (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($) leases	Sep. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Cash Basis Leases | leases			11
Accrued Rent Adjustment To Rental Income Resulting From Lease Collectibility Assessment	$ 800,000	$ 0	$ 1,700,000	$ 0
Contractual Rent Adjustment To Rental Income Resulting From Lease Collectibility Assessment	900,000	0	1,500,000	0
Lease Security Deposits Available in Letters of Credit	28,400,000		28,400,000		$ 22,600,000
Lease security deposits in restricted cash	700,000		700,000		700,000
Lease security deposits included in tenant prepaid rent and security deposits on the Balance Sheet	10,100,000		10,100,000		9,800,000
Real Estate Taxes, Tenant Responsibility	5,000,000.0	$ 5,100,000	14,700,000	$ 13,100,000
Accrued Income Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Deferred Rent Receivables, Net	$ 54,600,000		$ 54,600,000		$ 44,300,000

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Leases - Maturity of Fixed Lease Payments (Details) $ in Thousands	Sep. 30, 2020 USD ($)
Leases [Abstract]
2020	$ 92,565
2021	362,825
2022	327,365
2023	284,041
2024	240,067
Thereafter	$ 911,977

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Leases - Lessee Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Lessee, Lease, Description [Line Items]
Operating Lease, Weighted Average Remaining Lease Term	28 years 10 months 24 days		28 years 10 months 24 days		36 years
Operating Lease, Weighted Average Discount Rate, Percent	6.80%		6.80%		7.10%
Lease, Cost	$ 769	$ 597	$ 2,172	$ 1,792
Operating Lease, Payments			1,728	1,711
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability			$ 7,718	0
Minimum [Member]
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Term of Contract	5 years 9 months 18 days		5 years 9 months 18 days
Lessee, Operating Lease, Renewal Term	10 years		10 years
Maximum [Member]
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Term of Contract	49 years 1 month 6 days		49 years 1 month 6 days
Lessee, Operating Lease, Renewal Term	20 years		20 years
Operating Expense [Member]
Lessee, Lease, Description [Line Items]
Lease, Cost	$ 345	331	$ 1,007	993
General and Administrative Expenses
Lessee, Lease, Description [Line Items]
Lease, Cost	$ 424	$ 266	$ 1,165	$ 799

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Leases - Maturity of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Leases [Abstract]
2020	$ 606
2021	2,222
2022	3,100
2023	3,153
2024	3,196
Thereafter	59,245
Lessee, Operating Lease, Liability, Payments, Due	71,522
Less: Imputed interest	(45,108)
Operating lease liabilities	$ 26,414	$ 16,989

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Earnings Per Share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share [Abstract]
Participating securities	189,202	220,284	186,956	218,231

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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		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Numerator
Net income attributable to common stockholders	$ 22,386	$ 9,533	$ 102,021	$ 27,734
Denominator
Weighted average common shares outstanding — basic	148,997	127,272	148,412	122,460
Shares issuable under forward sales agreements	233	19	78	6
Weighted average common shares outstanding — diluted	149,905	127,469	148,865	122,720
Net income per share — basic and diluted
Net income per share attributable to common stockholders — basic	$ 0.15	$ 0.07	$ 0.69	$ 0.23
Net income per share attributable to common stockholders — diluted	$ 0.15	$ 0.07	$ 0.69	$ 0.23
Restricted stock
Net income per share — basic and diluted
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	189	220	187	218
Stock Compensation Plan
Denominator
Share-based compensation	675	178	375	254

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Commitments and Contingencies - Agreements (Details) $ in Millions	Sep. 30, 2020 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Letters of credit outstanding	$ 3.0

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Subsequent Events - Acquisitions (Details) ft² in Millions, $ in Millions	1 Months Ended
	Nov. 05, 2020 USD ($) ft² building	Sep. 30, 2020 ft²
Subsequent Event [Line Items]
Area (in square feet)		92.3
Subsequent Event [Member]
Subsequent Event [Line Items]
Number of properties | building	9
Area (in square feet)	3.7
Business Combination, Consideration Transferred | $	$ 256.5