Financial Data and Key Metrics Changes - STAG Industrial reported a 4.3% growth in same-store cash NOI and a 6.3% increase in core FFO per share for 2025, outperforming budgeted metrics [5][12] - Core FFO per share for Q4 was $0.66, and for the year it was $2.55, reflecting a 6.3% increase compared to 2024 [11] - The company incurred a cash credit loss of 22 basis points in 2025, with a retention rate of 75.8% for the quarter and 77.2% for the year [12] Business Line Data and Key Metrics Changes - In Q4, STAG commenced 31 leases totaling 3 million sq ft, achieving cash and straight-line leasing spreads of 16.3% and 27.4%, respectively [11] - The company expects cash leasing spreads of 18%-20% for 2026, with 69% of the operating portfolio square feet already addressed for leasing [7][13] Market Data and Key Metrics Changes - The industrial supply backdrop improved, with deliveries down almost 35% compared to 2024, and STAG anticipates 180 million sq ft of deliveries in 2026 [5][6] - National vacancy rates are expected to peak in the first half of 2026, with an inflection point anticipated in the latter half of the year [6][21] Company Strategy and Development Direction - STAG plans to continue its focus on leasing and acquisitions, with a guidance range for acquisition volume set between $350 million and $650 million for 2026 [13][14] - The company raised its dividend by 4%, the largest increase since 2014, and modified the payment cadence from monthly to quarterly [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about economic growth and increased tenant activity, indicating a healthy demand across most markets [6][29] - The company is preparing for a record amount of square footage expiring in 2026, which is expected to drive leasing activity [7][21] Other Important Information - STAG's development platform includes 3.5 million sq ft of development activity, with 59% of this being completed developments [8] - The company has a strong pipeline of $3.6 billion in potential transactions, indicating healthy market conditions [22] Q&A Session Summary Question: Inquiry on leasing environment and occupancy expectations - Management acknowledged the potential for upside in leasing activity if current momentum continues, despite budgeting for a 100 basis points occupancy decline [18][20] Question: Discussion on acquisition visibility and timing - Management indicated that while the first quarter is typically slower, they are underwriting more transactions than in the previous year, with a strong pipeline [22][23] Question: Clarification on tenant activity and demand - Management confirmed that the current tenant activity reflects real demand, with increased interest from various sectors, including data centers [29][31] Question: Insights on market rent growth and concessions - Management noted that while market rent growth is expected to be modest, stronger markets may see slightly higher growth, with concessions remaining stable [71][60] Question: Update on development leasing guidance for 2026 - Management provided guidance for 957,000 sq ft of leasing in 2026, including a build-to-suit project [63]

Core Viewpoint - Nexus Industrial REIT has acquired two industrial buildings in Montreal for $40.1 million, which are expected to enhance the REIT's value through long-term leases and significant future cap rate increases [1][2]. Acquisition Details - The acquisition includes two buildings with a combined gross leasable area (GLA) of 277,000 square feet, under long-term leases expiring in November 2032 [1]. - The initial cap rate on the leases is 6.6%, projected to increase to a stabilized market rate of 10.4% by 2028 [1][2]. Property Information - The properties acquired are located at: - 7505 Rue Saint-Patrick, LaSalle, QC, with a GLA of 193,916 square feet [3]. - 2370 Rue de la Province, Longueuil, QC, with a GLA of 83,249 square feet [3]. Company Overview - Nexus Industrial REIT is focused on increasing unitholder value through the acquisition and management of industrial properties in Canada, currently owning 89 properties with approximately 12.9 million square feet of GLA [4].