Q2 2020 SUPPLEMENTAL...Top Right 78 37 (1) Pursuant to the adoption of ASC 842 effective January 1, 2019, tenant reimbursement revenue is now included in Rental Income. For the three

SUPPLEMENTALINFORMATIONUNAUDITEDSECONDQUARTER2020

STAGSUPPLEMENTALINFORMATION–SECONDQUARTER2020 1

Forward-LookingStatements

Thissupplementalinformationpackagecontainscertainforward-lookingstatementswithinthemeaningofSection27AoftheSecuritiesActof1933,asamended,andSection21EoftheSecuritiesExchangeActof1934,asamended.STAGIndustrial,Inc.(STAG)intendssuchforward-lookingstatementstobecoveredbythesafeharborprovisionsforforward-lookingstatementscontainedinthePrivateSecuritiesLitigationReformActof1995andincludesthisstatementforpurposesofcomplyingwiththesesafeharborprovisions.Forward-lookingstatements,whicharebasedoncertainassumptionsanddescribeSTAG’sfutureplans,strategiesandexpectations,aregenerallyidentifiablebyuseofthewords“believe,”“will,”“expect,”“intend,”“anticipate,”“estimate,”“should”,“project”orsimilarexpressions.Youshouldnotrelyonforward-lookingstatementssincetheyinvolveknownandunknownrisks,uncertaintiesandotherfactorsthatare,insomecases,beyondSTAG’scontrolandwhichcouldmateriallyaffectactualresults,performancesorachievements.Factorsthatmaycauseactualresultstodiffermateriallyfromcurrentexpectationsinclude,butarenotlimitedto,theriskfactorsdiscussedinSTAG’smostrecentAnnualReportonForm10-KfortheyearendedDecember31,2019,asupdatedbytheCompany’ssubsequentreportsfiledwiththeSecuritiesandExchangeCommission.Accordingly,thereisnoassurancethatSTAG’sexpectationswillberealized.Exceptasotherwiserequiredbythefederalsecuritieslaws,STAGdisclaimsanyobligationorundertakingtopubliclyreleaseanyupdatesorrevisionstoanyforward-lookingstatementcontainedherein(orelsewhere)toreflectanychangeinSTAG’sexpectationswithregardtheretooranychangeinevents,conditionsorcircumstancesonwhichanysuchstatementisbased.

DefinedTerms,IncludingNon-GAAPMeasurementsPleaserefertotheDefinitionssectionneartheendofthesematerialsfordefinitionsofcapitalizedtermsusedherein,including,amongothers,AnnualizedBaseRentalRevenue,CapitalizationRateandRetention,aswellasnon-GAAPfinancialmeasures,suchasAdjustedEBITDAre,CashNOI,andCoreFFO.Thesematerialsprovidereconciliationsofnon-GAAPfinancialmeasurestonetincome(loss)inaccordancewithGAAP.Noneofthenon-GAAPfinancialmeasuresisintendedasanalternativetonetincome(loss)inaccordancewithGAAPasameasureoftheCompany’sfinancialperformance.

Golden,CO Londonderry,NH

Preparer Sync/Link ApproverNA JeffM. 10/20/2017 PeterF. 10/23/2017 1 1 1 1


TABLEOFCONTENTSPage Page

Overview 3 TenantsTenantProfile 16

Financials PortfolioDiversification 17ConsolidatedBalanceSheets 4ConsolidatedStatementsofOperations 5 CapitalizationandGuidanceNetOperatingIncome(NOI)&CashNOI 6 CapitalStructure,DebtMetrics&Covenants 18FundsFromOperations(FFO)&CoreFFO 7 DebtSummary 19AdjustedEBITDAre&CashAvailableforDistribution(CAD) 8 DebtMaturitySchedule 20-21

Guidance 22PortfolioAcquisitions 9 Definitions 23-26Dispositions 10SameStoreNOI 11CapitalExpenditures 12PortfolioCharacteristics 13Leasing&RetentionStatistics 14LeaseExpirationSchedule 15

Preparer Sync/Link ApproverNA JeffM. 10/20/2017 PeterF. 10/23/2017


OVERVIEW

Snapshot(June30,2020)

SquareFeet 91.8million

NumberofBuildings 457

NumberofStates 38

PortfolioOccupancy 97.0%

WeightedAverageLeaseTerm 5.1years

WeightedAverageRent $4.47/sf

NetDebttoRunRateAdjustedEBITDAre 4.3x

FixedChargeCoverageRatio 5.0x

MonthlyDividend(annualized) $0.120000($1.44)

Preparer Sync/Link ApproverNA JeffM. 10/20/2017 PeterF. 10/23/2017

1 1

Waukegan,IL

WestColumbia,SC


CONSOLIDATEDBALANCESHEETS(inthousands,exceptsharedata) June30,2020 December31,2019Assets

RentalProperty:

Land $ 444,489 $ 435,923

Buildingsandimprovements,netofaccumulateddepreciationof$446,361and$387,633,respectively 3,141,970 3,087,435

Deferredleasingintangibles,netofaccumulatedamortizationof$267,553and$241,304,respectively 451,738 475,149

Totalrentalproperty,net 4,038,197 3,998,507

Cashandcashequivalents 102,097 9,041

Restrictedcash 12,505 2,823

Tenantaccountsreceivable 65,122 57,592

Prepaidexpensesandotherassets 39,347 38,231

Interestrateswaps — 303

Operatingleaseright-of-useassets 22,168 15,129

Assetsheldforsale,net — 43,019

Totalassets $ 4,279,436 $ 4,164,645

LiabilitiesandEquity

Liabilities:

Unsecuredcreditfacility $ — $ 146,000

Unsecuredtermloans,net 970,282 871,375

Unsecurednotes,net 573,082 572,883

Mortgagenotes,net 52,827 54,755

Accountspayable,accruedexpensesandotherliabilities 58,783 53,737

Interestrateswaps 50,731 18,819

Tenantprepaidrentandsecuritydeposits 24,542 21,993

Dividendsanddistributionspayable 18,301 17,465

Deferredleasingintangibles,netofaccumulatedamortizationof$13,117and$12,064,respectively 26,292 26,738

Operatingleaseliabilities 24,279 16,989

Totalliabilities $ 1,799,119 $ 1,800,754

Equity:

Preferredstock,parvalue$0.01pershare,20,000,000sharesauthorizedatJune30,2020andDecember31,2019,

SeriesC,3,000,000shares(liquidationpreferenceof$25.00pershare)issuedandoutstandingatJune30,2020andDecember31,2019 75,000 75,000

Commonstock,parvalue$0.01pershare,300,000,000sharesauthorizedatJune30,2020andDecember31,2019,respectively,148,941,121and142,815,593sharesissuedandoutstandingatJune30,2020andDecember31,2019,respectively 1,489 1,428

Additionalpaid-incapital 3,148,163 2,970,553

Cumulativedividendsinexcessofearnings (750,770) (723,027)

Accumulatedothercomprehensiveloss (49,837) (18,426)

Totalstockholders’equity 2,424,045 2,305,528

Noncontrollinginterest 56,272 58,363

Totalequity 2,480,317 2,363,891

Totalliabilitiesandequity $ 4,279,436 $ 4,164,645

Preparer Sync/Link ApproverMattS. 10/20/2017 JeffM. 10/23/2017 JessicaF. 10/24/2017 1 1 1 1

1 2 3 4 Total 489 100 5 100 694

Top Right 78 37


CONSOLIDATEDSTATEMENTSOFOPERATIONS


1 2 3 4 5 6 7 8 Total 403 65 10 65 10 65 10 66 694

Top Right 78 37

ThreemonthsendedJune30, SixmonthsendedJune30,

(inthousands,exceptpersharedata) 2020 2019 2020 2019Revenue

Rentalincome $ 117,471 $ 96,362 $ 235,810 $ 191,977Otherincome 146 284 355 371Totalrevenue 117,617 96,646 236,165 192,348

Expenses Property 20,392 16,955 42,339 36,466Generalandadministrative 9,406 8,587 19,779 17,799Depreciationandamortization 53,606 44,633 106,294 86,936Lossonimpairments — — — 5,344Otherexpenses 588 427 1,064 826Totalexpenses 83,992 70,602 169,476 147,371

Otherincome(expense) Interestandotherincome 156 2 235 18Interestexpense (15,333) (12,193) (30,197) (25,027)Lossonextinguishmentofdebt (834) — (834) —Gainoninvoluntaryconversion 657 — 657 —Gainonthesalesofrentalproperty,net 1,045 317 47,804 1,591Totalotherincome(expense) (14,309) (11,874) 17,665 (23,418)

Netincome $ 19,316 $ 14,170 $ 84,354 $ 21,559

Less:incomeattributabletononcontrollinginterestafterpreferredstockdividends 407 408 2,005 622NetincomeattributabletoSTAGIndustrial,Inc. $ 18,909 $ 13,762 $ 82,349 $ 20,937Less:preferredstockdividends 1,289 1,289 2,578 2,578Less:amountallocatedtoparticipatingsecurities 68 79 136 158Netincomeattributabletocommonstockholders $ 17,552 $ 12,394 $ 79,635 $ 18,201Weightedaveragecommonsharesoutstanding—basic 148,663 125,251 148,116 120,015Weightedaveragecommonsharesoutstanding—diluted 149,027 125,560 148,341 120,306Netincomepershare—basicanddiluted

Netincomepershareattributabletocommonstockholders—basic $ 0.12 $ 0.10 $ 0.54 $ 0.15Netincomepershareattributabletocommonstockholders—diluted $ 0.12 $ 0.10 $ 0.54 $ 0.15


NETOPERATINGINCOME(NOI)&CASHNOI


(inthousands) 2020 2019 2020 2019

Netincome $ 19,316 $ 14,170 $ 84,354 $ 21,559

Generalandadministrative 9,406 8,587 19,779 17,799

Transactioncosts 8 79 59 153

Depreciationandamortization 53,606 44,633 106,294 86,936

Interestandotherincome (156) (2) (235) (18)

Interestexpense 15,333 12,193 30,197 25,027

Lossonimpairments — — — 5,344

Gainoninvoluntaryconversion (657) — (657) —

Lossonextinguishmentofdebt 834 — 834 —

Otherexpenses 580 348 1,005 673

Gainonthesalesofrentalproperty,net (1,045) (317) (47,804) (1,591)

Netoperatingincome(1) $ 97,225 $ 79,691 $ 193,826 $ 155,882

Netoperatingincome $ 97,225 $ 79,691 $ 193,826 $ 155,882

Straight-linerentadjustments,net (3,529) (3,231) (8,514) (5,411)

Straight-linetermination,solarandotherincomeadjustments,net 1,766 — 2,887 (43)

Amortizationofaboveandbelowmarketleases,net 1,168 1,141 2,152 2,102

Cashnetoperatingincome $ 96,630 $ 77,601 $ 190,351 $ 152,530

Cashnetoperatingincome $ 96,630

CashNOIfromacquisitions'anddispositions'timing 188

Cashtermination,solarandotherincome (3,033)

RunRateCashNOI $ 93,785

SameStorePortfolioNOI

TotalNOI $ 97,225 $ 79,691 $ 193,826 $ 155,882

Less:NOInon-same-storeproperties (22,430) (5,467) (44,073) (8,321)

Termination,solarandotheradjustments,net (728) (24) (789) (89)

SameStoreNOI $ 74,067 $ 74,200 $ 148,964 $ 147,472

Less:Straight-linerentadjustments,net (1,172) (2,742) (3,539) (5,327)

Amortizationofaboveandbelowmarketleases,net 1,036 924 1,900 1,866

SameStoreCashNOI $ 73,931 $ 72,382 $ 147,325 $ 144,011


1 2 3 4 5 6 7 8 9 Total 308 80 18 80 18 80 18 80 12 694

Top Right 78 37

(1)PursuanttotheadoptionofASC842effectiveJanuary1,2019,tenantreimbursementrevenueisnowincludedinRentalIncome.ForthethreeandsixmonthsendedJune30,2020and2019,TotalRentalIncomewas$117,471,$235,810,$96,362and$191,977comprisingofbaserentalincomeof$99,898,$200,030,$82,552and$161,998andtenantreimbursementincomeof$17,573,$35,780,$13,810and$29,979,respectively.


FUNDSFROMOPERATIONS(FFO)&COREFFO


(inthousands,exceptpersharedata) 2020 2019 2020 2019

Netincome $ 19,316 $ 14,170 $ 84,354 $ 21,559

Rentalpropertydepreciationandamortization 53,537 44,559 106,154 86,788



Fundsfromoperations $ 71,808 $ 58,412 $ 142,704 $ 112,100

Preferredstockdividends (1,289) (1,289) (2,578) (2,578)

Amountallocatedtorestrictedsharesofcommonstockandunvestedunits (196) (232) (406) (479)

Fundsfromoperationsattributabletocommonstockholdersandunitholders $ 70,323 $ 56,891 $ 139,720 $ 109,043

Fundsfromoperationsattributabletocommonstockholdersandunitholders $ 70,323 $ 56,891 $ 139,720 $ 109,043



Non-recurringdeaddealcosts 108 — 307 —



Corefundsfromoperations $ 71,784 $ 58,111 $ 142,415 $ 111,298

Weightedaveragecommonsharesandunits

Weightedaveragecommonsharesoutstanding 148,663 125,251 148,116 120,015

Weightedaverageunitsoutstanding 3,291 3,545 3,351 3,625

Weightedaveragecommonsharesandunits-basic 151,954 128,796 151,467 123,640

Dilutiveshares 364 309 225 291

Weightedaveragecommonshares,units,andotherdilutiveshares-diluted 152,318 129,105 151,692 123,931

Corefundsfromoperationspershare/unit-basic $ 0.47 $ 0.45 $ 0.94 $ 0.90

Corefundsfromoperationspershare/unit-diluted $ 0.47 $ 0.45 $ 0.94 $ 0.90


1 2 3 4 5 6 7 8 9 Total 370 71 10 71 10 71 10 71 10 694

Top Right 78 37


ADJUSTEDEBITDAre&CASHAVAILABLEFORDISTRIBUTION(CAD)


(inthousands) 2020 2019 2020 2019

Netincome $ 19,316 $ 14,170 $ 84,354 $ 21,559

Depreciationandamortization 53,606 44,633 106,294 86,936

Interestandotherincome (156) (2) (235) (18)

Interestexpense 15,333 12,193 30,197 25,027



EBITDAforRealEstate(EBITDAre) $ 87,054 $ 70,677 $ 172,806 $ 137,257

EBITDAre $ 87,054 $ 70,677 172,806 137,257



Non-cashcompensationexpense 2,938 2,537 5,790 4,815

Termination,solarandotherincome,net (1,267) — (1,328) (43)




AdjustedEBITDAre $ 86,663 $ 71,168 $ 171,271 $ 138,805

AdjustedEBITDAre $ 86,663

AdjustedEBITDArefromacquisitions'anddispositions'timing 188

RunRateAdjustedEBITDAre $ 86,851

Cashavailablefordistributionreconciliation

Corefundsfromoperations $ 71,784 $ 58,111 $ 142,415 $ 111,298

Non-rentalpropertydepreciationandamortization 69 74 140 148


Straight-linetermination,solarandotherincomeadjustments,net 1,766 — 2,887 (43)

Recurringcapitalexpenditures (152) (819) (471) (930)

Non-recurringcapitalexpenditures (2,742) (7,738) (10,200) (10,827)

Capitalexpendituresreimbursedbytenants (576) — (3,363) —

Newleasecommissionsandtenantimprovements (338) (512) (3,518) (1,462)

Renewalleasecommissionsandtenantimprovements (1,077) (2,417) (1,737) (3,149)

Non-cashportionofinterestexpense 746 618 1,422 1,236

Non-cashcompensationexpense 2,938 2,537 5,790 4,815

Cashavailablefordistribution $ 69,003 $ 46,588 $ 124,980 $ 95,607

1 Sync/Link ApproverMattS. 10/20/2017 JeffM. 10/23/2017 JessicaF. 10/24/2017 1 1 1 1

1 2 3 4 5 6 7 8 9 Total 370 71 10 71 10 71 10 71 10 694

Top Right 78 37


ACQUISITIONSSECONDQUARTER2020ACQUISITIONS

Market DateAcquired SquareFeet Buildings PurchasePrice($000)WeightedAverageLease

Term(Years)

CashCapitalization

Rate

Straight-LineCapitalization

Rate

Sacramento,CA 6/11/2020 54,463 1 $5,730 2.1

Chicago,IL 6/29/2020 67,817 1 6,184 10.4

Total/weightedaverage 122,280 2 $11,914 6.7 6.4% 6.8%

Preparer Sync/Link ApproverEdM. 10/11/2017 JeffM. 10/11/2017 Rowan 10/11/2017 1 1 1 1 1 1

1 2 3 4 5 6 7 8 9 Total 205 83 83 60 97 65 98 691

Top Right 78 37

2016DISPOSITIONS

Quarter SquareFeet Buildings GrossProceeds($000s)

Q1 1,182,606 3 $101,500,000.0

Q2 52,500 1 2,362,500.0

Q3

Q4

Total 1,235,106 4 $103,862,500.0

2020ACQUISITIONS

Quarter SquareFeet Buildings PurchasePrice($000)WeightedAverageLease

Term(Years)

CashCapitalization

Rate

Straight-LineCapitalization

Rate

Q1 1,599,389 9 $119,343 7.3 6.7% 7.2%

Q2 122,280 2 11,914 6.7 6.4% 6.8%

Total/weightedaverage 1,721,669 11 $131,257 7.3 6.6% 7.2%


DISPOSITIONS

Preparer Sync/Link ApproverEdM. 10/11/2017 JeffM. 10/11/2017 Stacy 10/11/2017 1 1 1 1 1 1

1 2 3 4 5 6 7 8 9 Total 205 83 83 60 97 65 98 691

Top Right 78 37

SECONDQUARTER2020DISPOSITIONS

Market DateDisposed SquareFeet Buildings GrossProceeds($000s)

Albany/Schenectady/Troy,NY 4/29/2020 52,500 1 $2,363

Total 52,500 1 $2,363

2020DISPOSITIONS

Market SquareFeet Buildings GrossProceeds($000s)

Q1 1,182,606 3 $101,500

Q2 52,500 1 2,363

Total 1,235,106 4 $103,863


SAMESTORENOI

(inthousands,exceptbuildingcountdataandsquarefootage)


2020 2019 Change %Change 2020 2019 Change %Change

SameStoresquarefootage 73,417,170 73,417,170

SameStorebuildings 368 368

%oftotalsquarefeet 79.9% 79.9%

OccupancyRateatquarterend 97.2% 96.2% 1.0% 97.2% 96.2% 1.0%

AverageOccupancyRate 97.0% 96.2% 0.8% 96.6% 96.1% 0.5%

SameStoreGAAPAnalysis

Incomefromrealestateoperations $90,317 $89,191 $1,126 $182,105 $180,169 $1,936

Incomefromleaseterminations,solarandother (285) (24) (261) (365) (89) (276)

GAAPadjustmentsforwrite-offsforleaseterminations (443) — (443) (424) — (424)

Incomeexcludingleaseterminations,solarandother $89,589 $89,167 $422 $181,316 $180,080 $1,236

Expensesfromrealestateoperations (15,522) (14,967) (555) (32,352) (32,608) 256

SameStoreGAAPNOI $74,067 $74,200 ($133) (0.2%) $148,964 $147,472 $1,492 1.0%

SameStoreCashAnalysis

Incomefromrealestateoperations $91,746 $87,344 $4,402 $183,096 $177,057 $6,039

Cashreceivedfromleaseterminations,solarandother (2,349) (50) (2,299) (3,531) (549) (2,982)

Incomeexcludingleaseterminations,solarandother $89,397 $87,294 $2,103 $179,565 $176,508 $3,057

Expensesfromrealestateoperations (15,466) (14,912) (554) (32,240) (32,497) 257

SameStoreCashNOI $73,931 $72,382 $1,549 2.1% $147,325 $144,011 $3,314 2.3%

Preparer Sync/Link ApproverEdM. 10/16/2017 JeffM. 10/17/2017 Delva 10/18/2017 1 1 1 1

Top Right Width 78 37 694

(1)(2)(2)

(1)Excludesstraightlineterminationincomeofapproximately$273,$681,$(858)and$(858)forthreeandtwelvemonthsendedDecember31,2017andDecember31,2016respectively.(2)Excludescashterminationincomeofapproximately$65,$649,$928and$928forthreeandtwelvemonthsendedDecember31,2017andDecember31,2016respectively.


CAPITALEXPENDITURESCAPITALEXPENDITURES,TENANTIMPROVEMENTS,ANDLEASECOMMISSIONSSUMMARY


2020 2019 2020 2019

Averageportfoliosquarefeet 91,814,185 79,701,419 91,601,749 79,006,260

Renewaltenantimprovementsandleasecommissions $1,077 $2,417 $1,737 $3,149

Newtenantimprovementsandleasecommissions 338 512 3,518 1,462

Totaltenantimprovements(TIs)andleasecommissions(LCs) $1,415 $2,929 $5,255 $4,611

Recurringcapitalexpenditures $152 $819 $471 $930

Non-recurringcapitalexpenditures 2,742 7,738 10,200 10,827

Totalrecurringandnon-recurringcapitalexpenditures $2,894 $8,557 $10,671 $11,757

Totalrecurringandnon-recurringcapitalexpendituresperaveragesquarefoot $0.03 $0.11 $0.12 $0.15

Totalcapitalexpenditures,TIsandLCs $4,309 $11,486 $15,926 $16,368

Acquisitioncapitalexpenditures $4,028 $1,403 $4,417 $2,448

Buildingexpansionsandredevelopment $2,332 $8,380 $6,486 $9,157

Capitalexpenditurespaidorreimbursedbytenants $726 $1,503 $3,534 $1,726

Totalcapitalexpenditures,buildingexpansions,TIs,andLCs $11,395 $22,772 $30,363 $29,699

RECONCILIATIONOFCAPITALEXPENDITURESTOSTATEMENTOFCASHFLOWS

Additionstobuildingandothercapitalimprovementspercashflowstatement $10,484 $13,891 $27,299 $18,949

Changeinadditionsoflandandbuildingandimprovementsincludedinaccountspayable,accrued

expensesandotherliabilitiesandadditionsfromnon-cashitemspercashflowstatement (1,754) 6,283 (666) 7,391

Newandrenewalleasecommissions 2,665 2,598 3,730 3,359

Totalcapitalexpenditures,buildingexpansions,TIs,andLCs $11,395 $22,772 $30,363 $29,699

Preparer Sync/Link ApproverEdM. 10/16/2017 JeffM. 10/17/2017 PatB. 10/23/2017 1 1 1 1

1 2 3 4 Total 489 100 5 100 694

Top Right 78 37

(inthousands,exceptsquarefeetdata)


PORTFOLIOCHARACTERISTICSBUILDINGTYPEASOFJUNE30,2020

SquareFootage AnnualizedBaseRentalRevenue

BuildingType #ofBuildings Amount % OccupancyRate Amount($000s) %

Warehouse 376 82,914,376 90.3% 97.5% $355,661 89.4%

Lightmanufacturing 70 7,902,777 8.6% 98.1% 38,299 9.6%

Totaloperatingportfolio/weightedaverage 446 90,817,153 98.9% 97.6% $393,960 99.0%

ValueAdd/other 3 594,030 0.6% 39.7% 1,158 0.3%

Flex/office 8 432,315 0.5% 48.9% 2,874 0.7%

Totalportfolio/weightedaverage 457 91,843,498 100.0% 97.0% $397,992 100.0%

PORTFOLIOCHARACTERISTICS

DECEMBER31,2019

2019 2018

Numberofbuildings 450 314

Squarefeet 91,359,999 60,878,204

Occupancy 95.0% 94.7%

Averagebuildingsize(squarefeet)(1) 205,174 200,674

Averagebuildingage(years)(1) 27 27

Averageminimumandmaximumclearheight(feet)(1) 26-29 26-29

OPERATINGPORTFOLIOBUILDINGSBYLOCATIONASOFJUNE30,2020

SquareFootage AnnualizedBaseRentalRevenue

LocationClassification #ofBuildings Amount % OccupancyRate Amount($000s) %

Primary(greaterthan220millionnetrentablesquarefeet) 230 48,129,182 53.0% 96.8% $215,416 54.7%

Secondary(27millionto220millionnetrentablesquarefeet) 183 36,797,662 40.5% 98.5% 155,048 39.4%

Tertiary(lessthan27millionnetrentablesquarefeet) 33 5,890,309 6.5% 98.0% 23,496 5.9%

TotalOperatingPortfolio/weightedaverage 446 90,817,153 100.0% 97.6% $393,960 100.0%

Preparer Sync/Link ApproverEdM. 10/11/2017 JeffM. 10/11/2017 StacyC. 10/11/2017 1 1 1 1

1 2 3 4 Total 489 100 5 100 694

Top Right 78 37


LEASING&RETENTIONSTATISTICSSECONDQUARTER2020OPERATINGPORTFOLIOLEASINGACTIVITY

LeaseTypeSquareFeet

W.A.LeaseTerm(Years)

CashBaseRent$/SF

SLBaseRent$/SF

LeaseCommissions

$/SF

TenantImprovement

$/SFCashRentChange

SLRentChange Retention

NewLeases 444,952 11.5 $3.77 $4.20 $2.57 $2.21 (8.3)% 4.0%

RenewalLeases 2,276,692 5.8 $4.36 $4.61 $0.68 $0.40 3.4% 10.6% 100.0%

Total/weightedaverage 2,721,644 6.7 $4.27 $4.54 $0.99 $0.69 1.6% 9.6%


1 2 3 4 Total 489 100 5 100 694

Top Right 78 37

2018OPERATINGPORTFOLIORETENTION

2020YEARTODATEOPERATINGPORTFOLIOLEASINGACTIVITY

LeaseTypeSquareFeet

W.A.LeaseTerm(Years)

CashBaseRent$/SF

SLBaseRent$/SF

LeaseCommissions

$/SF

TenantImprovement

$/SFCashRentChange

SLRentChange Retention

NewLeases 872,423 8.3 $3.97 $4.29 $1.87 $1.33 (5.2)% 4.2%

RenewalLeases 3,622,946 5.1 $4.44 $4.65 $0.52 $0.40 4.0% 11.6% 95.0%

Total/weightedaverage 4,495,369 5.7 $4.35 $4.58 $0.78 $0.58 2.2% 10.2%

Note:Thetablesaboverepresentleasescommencingduringthequarter.Note:ForthethreeandsixmonthsendedJune30,2020,leasescommencedtotaling481,938squarefeetrelatedtoValueAddassetsandareexcludedfromtheOperatingPortfoliostatisticsabove.


LEASEEXPIRATIONSCHEDULELEASEEXPIRATIONSCHEDULEASOFJUNE30,2020

LeaseExpirationYear NumberofLeasesExpiring TotalRentableSF %ofOccupiedSFAnnualizedBaseRental

Revenue($000s)%ofTotalAnnualizedBase

RentalRevenue

Available N/A 2,795,864 N/A N/A N/A

MTM 6 793,541 0.9% $2,946 0.7%

2020 13 3,814,198 4.3% 17,759 4.5%

2021 67 10,585,161 11.9% 47,783 12.0%

2022 77 9,295,289 10.4% 40,975 10.3%

2023 80 11,878,562 13.3% 47,540 11.9%

2024 65 11,247,169 12.6% 48,827 12.3%

2025 53 8,967,432 10.1% 39,013 9.8%

2026 44 7,047,276 7.9% 32,518 8.2%

2027 24 3,361,401 3.8% 16,970 4.3%

2028 24 4,505,880 5.1% 19,526 4.9%

2029 22 4,055,023 4.5% 19,959 5.0%

Thereafter 52 13,496,702 15.2% 64,176 16.1%

Total 527 91,843,498 100.0% $397,992 100.0%

Sync/Link ApproverEdM. 10/11/2017 JeffM. 10/11/2017 StacyC. 10/11/2017 1 1 1 1

1 2 3 4 Total 489 100 5 100 694

Top Right 78 37


TENANTPROFILE

(1)Basedonannualizedbaserentalrevenueandtheinclusionoftenants,guarantors,and/ornon-guarantorparents.

TENANTPROFILE

June30,2020

Profile

Numberoftenants 422

Averagetenantsize(squarefeet) 211,013

AverageAnnualizedBaseRentalRevenuepersquarefoot $4.47

AverageAnnualizedBaseRentalRevenuepertenant($000s) $943

AverageAnnualizedBaseRentalRevenueperlease($000s) $755

Credit(1)

Tenantspubliclyrated 54.3%

Tenantsratedinvestmentgrade 30.8%

Tenantrevenue>$100million 85.5%

Tenantrevenue>$1billion 60.6%

Preparer Sync/link ApproverScott M. / Ed M. 10/11/2017 Jeff M. 10/16/2017 Kurt F. / Ed M. 10/16/2017 1 1 1 1

1 2 3 4 Total 489 100 5 100 694

Top Right 78 37


INDUSTRYDIVERSIFICATION

June30,2020

# Industry(2) ABR%

1 AutoComponents 12.1%

2 AirFreight&Logistics 8.0%

3 Containers&Packaging 7.3%

4 CommercialServices&Supplies 7.3%

5 Machinery 4.6%

6 HouseholdDurables 4.6%

7 FoodProducts 4.5%

8 BuildingProducts 4.5%

9 Internet&DirectMktRetail 3.9%

10 Food&StaplesRetailing 3.7%

11 ElectricalEquipment 3.6%

12 Media 3.1%

13 Beverages 2.8%

14 HouseholdProducts 2.7%

15 ElectronicEquip,Instruments 2.3%

16 SpecialtyRetail 2.2%

17 Chemicals 2.0%

18 Textiles,Apparel,LuxuryGood 1.9%

19 Metals&Mining 1.7%

20 Pharmaceuticals 1.5%

Top10 60.5%

Top11-20 23.8%

TotalTop20 84.3%

PORTFOLIODIVERSIFICATIONTENANTDIVERSIFICATION

June30,2020

# Tenant(1) #ofLeases ABR%

1 Amazon 4 2.5%

2 GeneralServiceAdministration 1 1.8%

3 XPOLogistics,Inc. 5 1.3%

4 TriMasCorporation 4 1.0%

5 SoloCup 1 1.0%

6 DSSmithNorthAmerica 2 0.9%

7 AmericanTireDistributorsInc 5 0.9%

8 FordMotorCompany 1 0.8%

9 HachetteBookGroup,Inc. 1 0.8%

10 PackagingCorpofAmerica 5 0.8%

11 YanfengUSAutomotiveInterior 2 0.8%

12 SchneiderElectricUSA,Inc. 3 0.8%

13 FedExCorporation 3 0.8%

14 WestRockCompany 6 0.8%

15 KencoLogisticServices,LLC 2 0.7%

16 PerrigoCompany 2 0.7%

17 CarolinaBeverageGroup 2 0.7%

18 GenerationBrands 1 0.7%

19 DHLSupplyChain 4 0.7%

20 EmersonElectric 2 0.6%

Top10 29 11.8%

Top11-20 27 7.3%

TotalTop20 56 19.1%

GEOGRAPHICDIVERSIFICATION

44012

# #OFCBSA(1) ABR%

1 StateNameNumberofCBSA

Mkts %AnnBaseRent

2 Pennsylvania 10 9.6%

3 Texas 6 8.3%

4 SouthCarolina 7 8.3%

5 Illinois 2 6.7%

6 Michigan 4 6.6%

7 Ohio 8 5.9%

8 NorthCarolina 8 5.7%

9 Wisconsin 9 5.2%

10 NewJersey 3 4.4%

Top10States 57 60.7%

Total 129 99.9%

TotalTop20States 186 160.6%


1 2 3 4 Total 489 100 5 100 694

Top Right 78 37

(1)Basedonannualizedbaserentalrevenueandtheinclusionoftenants,guarantors,and/ornon-guarantorparents.(2)IndustryclassificationbasedonGICSmethodology.

GEOGRAPHICDIVERSIFICATION

June30,2020

# Market ABR%

1 Philadelphia,PA 8.7%

2 Chicago,IL 7.0%

3 Greenville/Spartanburg,SC 5.8%

4 Detroit,MI 4.6%

5 Milwaukee/Madison,WI 4.3%

6 Pittsburgh,PA 4.3%

7 Minneapolis/StPaul,MN 4.2%

8 Houston,TX 3.6%

9 Charlotte,NC 2.7%

10 Indianapolis,IN 2.5%

11 Boston,MA 2.5%

12 Cincinnati/Dayton,OH 2.5%

13 WestMichigan,MI 2.4%

14 Columbus,OH 2.3%

15 ElPaso,TX 2.2%

16 Columbia,SC 1.8%

17 Westchester/SoConnecticut,CT/NY 1.7%

18 Raleigh/Durham,NC 1.5%

19 KansasCity,MO 1.5%

20 Memphis,TN 1.4%

Top10 47.7%

Top11-20 19.8%

TotalTop20 67.5%


CAPITALSTRUCTURE,DEBTMETRICS&COVENANTS

CAPITALSTRUCTURE

AsofJune30,2020

Commonshares,participatingsecurities,performanceunitsandotherunits

Commonsharesoutstanding 148,751,525

Participatingsecuritiesoutstanding 189,596

Unitsoutstanding 3,567,928

Commonshares,participatingsecurities,andotherunits-basic 152,509,049

Performanceunits 681,458

Commonshares,participatingsecurities,performanceandotherunits-diluted 153,190,507

Preparer Sync/Link ApproverJessicaF. 10/16/2017 JeffM. 10/20/2017 JaclynP. 10/24/2017 1 1 1 1

1 2 3 4 Total 489 100 5 100 694

Top Right 78 37

DEBTMETRICS

June30,2020

Netdebt/AdjustedEBITDAreratio 4.3x

Netdebt/RunRateAdjustedEBITDAreratio 4.3x

Netdebt/totalRealEstateCostBasis(atquarterend) 31.8%

Totaldebt/totalenterprisevalue(atquarterend) 26.5%

Liquidity $599.1million

FitchCreditRating BBB/Stable

Moody'sCreditRating Baa3/Stable

UNSECUREDDEBTCOVENANTS

Covenant June30,2020

Consolidatedleverageratio <60% 29.2%

Securedleverageratio <40% 1.0%

Unencumberedleverageratio <60% 30.2%

Unsecuredinterestcoverageratio >1.75x 6.4x

Fixedchargecoverageratio >1.5x 5.0x


(1)TheinterestrateontheunsecuredfacilitiesrepresentstheinterestrateasofJune30,2020basedontheCompany'sinvestmentgraderatingasdefinedintherespectiveloanagreements.UnsecuredtermloansA,D,E,andFhaveastatedinterestrateofone-monthLIBORplusaspreadof1.0%.UnsecuredtermloanGhasastatedinterestrateofone-monthLIBORplusaspreadof1.5%,subjecttoaminimumone-monthLIBORrateof0.25%.AsofJune30,2020,one-monthLIBORfortheunsecuredtermloansA,D,E,andGwasswappedtoafixedrateof2.38%,1.85%,2.92%,and1.72%,respectively.One-monthLIBORforunsecuredtermloanFwasswappedtoafixedrateof2.11%effectiveJuly15,2020.One-monthLIBORfortheUnsecuredTermLoanGwillbeswappedtoafixedrateof1.17%effectiveSeptember29,2020and0.28%effectiveMarch19,2021.Thecurrentinterestratespresentedinthetableabovearenotadjustedtoincludetheamortizationofdeferredfinancingfeesordebtissuancecostsincurredinobtainingdebtortheunamortizedfairmarketvaluepremiumsordiscounts.

(2)ThematuritydatefortheunsecuredtermloanGisApril16,2021,orsuchlaterdateasmaybeextendedpursuanttotwoone-yearextensionoptionsexercisablebytheCompanyinitsdiscretionuponadvancewrittennotice.Exerciseofeachone-yearoptionissubjecttothefollowingconditions:(i)absenceofadefaultimmediatelybeforetheextensionandimmediatelyaftergivingeffecttotheextension,(ii)accuracyofrepresentationsandwarrantiesasoftheextensiondate(bothimmediatelybeforeandaftertheextension),asifmadeontheextensiondate,and(iii)paymentofafee.Neitherextensionoptionissubjecttolenderconsent,assumingpropernoticeandsatisfactionoftheconditions.

(3)ThematuritydatefortheunsecuredcreditfacilityisJanuary15,2023,orsuchlaterdateasmaybeextendedpursuanttotwosix-monthextensionoptionsexercisablebytheCompanyinitsdiscretionuponadvancewrittennotice.Exerciseofeachsix-monthoptionissubjecttothefollowingconditions:(i)absenceofadefaultimmediatelybeforetheextensionandimmediatelyaftergivingeffecttotheextension,(ii)accuracyofrepresentationsandwarrantiesasoftheextensiondate(bothimmediatelybeforeandaftertheextension),asifmadeontheextensiondate,and(iii)paymentofafee.Neitherextensionoptionissubjecttolenderconsent,assumingpropernoticeandsatisfactionoftheconditions.

ASOFJUNE30,2020(inmillions)

Category Committed PrincipalBalance InterestRate(1) CurrentMaturity

Unsecureddebt:

UnsecuredTermLoanA 150.0 150.0 3.38% 3/31/2022

UnsecuredTermLoanD 150.0 150.0 2.85% 1/4/2023

SeriesFUnsecuredNote 100.0 100.0 3.98% 1/5/2023

UnsecuredTermLoanG(2) 300.0 300.0 3.31% 4/18/2023

UnsecuredCreditFacility(3) 500.0 — L+0.90% 1/12/2024

UnsecuredTermLoanE 175.0 175.0 3.92% 1/15/2024

SeriesAUnsecuredNote 50.0 50.0 4.98% 10/1/2024

UnsecuredTermLoanF 200.0 200.0 L+1.00% 1/12/2025

SeriesDUnsecuredNote 100.0 100.0 4.32% 2/20/2025

SeriesGUnsecuredNote 75.0 75.0 4.10% 6/13/2025

SeriesBUnsecuredNote 50.0 50.0 4.98% 7/1/2026

SeriesCUnsecuredNote 80.0 80.0 4.42% 12/30/2026

SeriesEUnsecuredNote 20.0 20.0 4.42% 2/20/2027

SeriesHUnsecuredNote 100.0 100.0 4.27% 6/13/2028

Total/weightedaverageunsecured $2,050.0 $1,550.0 3.45% 3.9 years

Secureddebt:

WellsFargoBank,NationalAssociationCMBSLoan 49.5 49.5 4.31% 12/1/2022

ThriventFinancialforLutherans 3.6 3.6 4.78% 12/15/2023

Total/weightedaveragesecured $53.1 53.1 4.34% 2.5 years

Total/weightedaverage $2,103.1 $1,603.1 3.48% 3.9 years

Add:totalunamortizedfairmarketvaluepremiums 0.1

Less:totalunamortizeddeferredfinancingfeesanddebtissuancecosts (7.0)

Totalbookvalue $1,596.2

DEBTSUMMARY

Preparer Sync/Link ApproverMattsP. 10/6/2017 JeffM. 10/6/2017 JessicaF. 10/12/2017 1 1 1 1

1 2 3 4 Total 489 100 5 100 694

Top Right 78 37


DEBTMATURITYSCHEDULE

$0$0 $0$0

$200$200

$554$554

$225$225

$375$375

$130$130

$20$20

$100$100

UnsecuredRevolver UnsecuredTermLoans UnsecuredPrivatePlacements SecuredDebt

2020 2021 2022 2023 2024 2025 2026 2027 2028$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

$550

$600

Preparer Sync/Link ApproverMattsP. 10/6/2017 JeffM. 10/6/2017 JessicaF. 10/12/2017 1 1 1 1

NA NA 3.61% 3.32% 4.15% 2.59% 4.64% 4.42% 4.27%WtdAvg.InterestRate(1)

1 2 3 4 Total 489 100 5 100 694

Top Right 78 37

(1)Theweightedaverageinterestrateforunsecureddebtwascalculatedusingthecurrentswappednotionalamountof$775millionofdebt,andexcludesanyfairmarketvaluepremiumsordiscountsandalsoexcludestheamortizationofdeferredfinancingfeesanddebtissuancecostsincurredinobtainingdebt.AsofJune30,2020,one-monthLIBORfortheunsecuredtermloansA,D,E,andGwasswappedtoafixedrateof2.38%,1.85%,2.92%,and1.72%,respectively.One-monthLIBORforunsecuredtermloanFwasswappedtoafixedrateof2.11%effectiveJuly15,2020.One-monthLIBORfortheUnsecuredTermLoanGwillbeswappedtoafixedrateof1.17%effectiveSeptember29,2020and0.28%effectiveMarch19,2021.



MAKE SURE TO CHANGE SECURED DEBT COLOR IN ALL YEARS IF THERE ENDS UP BENING A SECURED DEBT BALANCE

Note:Theabovebalancesdonotreflectfuturescheduledprincipalamortizationpayments.

PRINCIPALBALANCEASOFJUNE30,2020(inmillions)

(2) (3)


$0$0 $0$0

$200$200

$554$554

$725$725

$375$375

$130$130

$20$20

$100$100

UnsecuredRevolver UnsecuredTermLoans UnsecuredPrivatePlacements SecuredDebt

2020 2021 2022 2023 2024 2025 2026 2027 2028$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

$550

$600

$650

$700

$750

$800

DEBTMATURITYSCHEDULE

(1)Theweightedaverageinterestrateforunsecureddebtwascalculatedusingthecurrentswappednotionalamountof$775millionofdebt,andexcludesanyfairmarketvaluepremiumsordiscountsandalsoexcludestheamortizationofdeferredfinancingfeesanddebtissuancecostsincurredinobtainingdebt.AsofJune30,2020,one-monthLIBORfortheunsecuredtermloansA,D,E,andGwasswappedtoafixedrateof2.38%,1.85%,2.92%,and1.72%,respectively.One-monthLIBORforunsecuredtermloanFwasswappedtoafixedrateof2.11%effectiveJuly15,2020.One-monthLIBORfortheUnsecuredTermLoanGwillbeswappedtoafixedrateof1.17%effectiveSeptember29,2020and0.28%effectiveMarch19,2021.



Note:Theabovebalancesdonotreflectfuturescheduledprincipalamortizationpayments.

NA NA 3.61% 3.32% 2.02% 2.59% 4.64% 4.42% 4.27%WtdAvg.InterestRate(1)

=Undrawn

FULLYCOMMITTEDASOFJUNE30,2020(inmillions)

(2) (3)


GUIDANCE

Preparer Sync/Link Approver10/16/2017 JeffM. 10/20/2017 JessicaF. 10/24/2017

1 2 3 4 Total 390 4 150 150 694

Top Right 694 78 37

2020GUIDANCE

Q2Guidance Q1Guidance

Low High Low High

CoreFFOpershare $1.80 $1.88 $1.80 $1.88

Acquisitionvolume $300.0million $600.0million $300.0million $600.0million

Stabilizedvolume $300.0million $600.0million $300.0million $600.0million

ValueAddvolume $— $— $— $—

StabilizedCapitalizationRate 6.25% 6.75% 6.25% 6.75%

Dispositionvolume $100.0million $150.0million $150.0million $250.0million

SameStoreCashNOIChange 0.0% 1.0% 0.0% 1.0%

Retention 60% 70% 60% 70%

Capitalexpenditureperaveragesquarefoot $0.27 $0.31 $0.27 $0.31

NetdebttoRunRateAdjustedEBITDAre 4.50x 5.25x 4.50x 5.50x

General&administrativeexpense $39.0million $41.0million $39.0million $41.0million


Acquisition Capital Expenditures:We define Acquisition Capital Expenditures as Recurring and Non-Recurring Capital Expenditures identified at the time ofacquisition.AcquisitionCapitalExpendituresalsoincludenewleasecommissionsandtenantimprovementsforspacethatwasnotoccupiedundertheCompany'sownership.

AnnualizedBaseRentalRevenue:WedefineAnnualizedBaseRentalRevenueas themonthlybasecashrent for theapplicablepropertyorproperties (which isdifferentfromrentcalculatedinaccordancewithGAAPforpurposesofourfinancialstatements),multipliedby12.Ifatenantisinafreerentperiod,theannualizedrentiscalculatedbasedonthefirstcontractualmonthlybaserentamountmultipliedby12.

CashAvailableforDistribution:CashAvailableforDistributionrepresentsCoreFFO,excludingnon-rentalpropertydepreciationandamortization,straight-linerentadjustments,non-cashportionofinterestexpense,non-cashcompensationexpense,anddeductscapitalexpendituresreimbursedbytenants,recurringandnon-recurringcapitalexpenditures,andleasingcommissionsandtenantimprovements.

CashAvailableforDistributionshouldnotbeconsideredasanalternativetonetincome(determinedinaccordancewithGAAP)asanindicationofourperformance,andwebelievethattounderstandourperformancefurther,thesemeasurementsshouldbecomparedwithourreportednetincomeornetlossinaccordancewithGAAP,aspresentedinourconsolidatedfinancialstatements.

CashAvailableforDistributionexcludes,amongotheritems,depreciationandamortizationandcaptureneitherthechangesinthevalueofourbuildingsthatresultfromuseormarketconditionsofourbuildings,allofwhichhaverealeconomiceffectsandcouldmateriallyimpactourresultsfromoperations,theutilityofthesemeasures asmeasures of our performance is limited. In addition, our calculation of Cash Available for Distributionmay not be comparable to similarly titledmeasuresdisclosedbyotherREITs.

CashCapitalizationRate:WedefineCashCapitalizationRateascalculatedbydividing(i)theCompany’sestimateofyearonecashnetoperatingincomefromtheapplicable property’s operations stabilized for occupancy (post-lease-up for vacant properties), which does not include termination income, solar income,miscellaneousotherincome,capitalexpenditures,generalandadministrativecosts,reserves,tenantimprovementsandleasingcommissions,creditloss,orvacancyloss,by (ii) theGAAPpurchasepriceplusestimatedAcquisitionCapitalExpenditures.TheseCapitalizationRateestimatesaresubject to risks,uncertainties,andassumptionsandarenotguaranteesoffutureperformance,whichmaybeaffectedbyknownandunknownrisks,trends,uncertainties,andfactorsthatarebeyondourcontrol,includingthoseriskfactorscontainedinourAnnualReportonForm10-KfortheyearendedDecember31,2019.

CashRentChange:WedefineCashRentChangeasthepercentagechangeinthebaserentoftheleasecommencedduringtheperiodcomparedtothebaserentoftheComparableLeaseforassetsincludedintheOperatingPortfolio.Thecalculationcomparesthefirstbaserentpaymentdueaftertheleasecommencementdatecomparedtothebaserentofthelastmonthlypaymentduepriortotheterminationofthelease,excludingholdoverrent.Rentundergrossorsimilartypeleasesareconvertedtoanetrentbasedonanestimateoftheapplicablerecoverableexpenses.

ComparableLease:WedefineaComparableLeaseasaleaseinthesamespacewithasimilarleasestructureascomparedtothepreviousin-placelease,excludingnewleasesforspacethatwasnotoccupiedunderourownership.

Earningsbefore Interest,Taxes,Depreciation,andAmortization forRealEstate (EBITDAre),AdjustedEBITDAre,AnnualizedAdjustedEBITDAre,andRunRateAdjustedEBITDAre:WedefineEBITDAre inaccordancewith the standardsestablishedby theNationalAssociationofRealEstate InvestmentTrusts (“NAREIT”).EBITDArerepresentsnetincome(loss)(computedinaccordancewithGAAP)beforeinterestexpense,interestandotherincome,tax,depreciationandamortization,gainsor lossesonthesaleofrentalproperty,andlosson impairments.AdjustedEBITDArefurtherexcludestransactioncosts,termination income,solar income,revenueassociatedwithone-timetenantreimbursementsofcapitalexpenditures,straight-linerentadjustments,non-cashcompensationexpense,amortizationofaboveandbelowmarketleases,net,gain(loss)oninvoluntaryconversion,lossonextinguishmentofdebt,andothernon-recurringitems.

NON-GAAPFINANCIALMEASURES&OTHERDEFINITIONS

Preparer Sync/Link ApproverJeff M. 7/15/2016 1 1

UPDATE


WedefineAnnualizedAdjustedEBITDAreasAdjustedEBITDAremultipliedbyfour.

WedefineRunRateAdjustedEBITDAreasAdjustedEBITDAreplus incrementalAdjustedEBITDAreadjustedforafullperiodofacquisitionsanddispositions.RunRateAdjustedEBITDAredoesnotreflecttheCompany’shistoricalresultsanddoesnotpredictfutureresults,whichmaybesubstantiallydifferent.

EBITDAre,AdjustedEBITDAre,andRunRateAdjustedEBITDAreshouldnotbeconsideredasanalternativetonetincome(determinedinaccordancewithGAAP)asan indicationofourperformance, andwebelieve that tounderstandourperformance further, EBITDAre,AdjustedEBITDAre, andRunRateAdjustedEBITDAreshouldbecomparedwithourreportednet incomeornet loss inaccordancewithGAAP,aspresented inourconsolidatedfinancialstatements.WebelievethatEBITDAre,AdjustedEBITDAre,andRunRateAdjustedEBITDArearehelpfulto investorsassupplementalmeasuresoftheoperatingperformanceofarealestatecompanybecausetheyaredirectmeasuresoftheactualoperatingresultsofourproperties.Wealsousethesemeasuresinratiostocompareourperformancetothatofourindustrypeers.

FixedChargeCoverageRatio:Wedefine theFixedChargeCoverageRatioasAdjustedEBITDAredividedbycash interestexpense,preferreddividendspaidandprincipalpayments.

FundsfromOperations(FFO)andCoreFFO:WedefineFFO inaccordancewiththestandardsestablishedbytheNationalAssociationofRealEstate InvestmentTrusts(“NAREIT”).FFOrepresentsnetincome(loss)(computedinaccordancewithGAAP),excludinggains(orlosses)fromsalesofdepreciableoperatingproperty,gains(losses)fromsalesof land, impairmentwrite-downsofdepreciablerealestate,realestaterelateddepreciationandamortization(excludingamortizationofdeferredfinancingcostsandfairmarketvalueofdebtadjustment)andafteradjustmentsforunconsolidatedpartnershipsand jointventures.CoreFFOexcludestransactioncosts,amortizationofaboveandbelowmarket leases,net, lossonextinguishmentofdebt,gain(loss)oninvoluntaryconversion,gain(loss)onswapineffectiveness,andnon-recurringotherexpenses.

NoneofFFOorCoreFFOshouldbeconsideredasanalternativetonetincome(determinedinaccordancewithGAAP)asanindicationofourperformance,andwebelievethattounderstandourperformancefurther,thesemeasurementsshouldbecomparedwithourreportednetincomeornetlossinaccordancewithGAAP,aspresented inour consolidated financial statements. Weuse FFOas a supplemental performancemeasurebecause it is awidely recognizedmeasureof theperformanceofREITs.FFOmaybeusedbyinvestorsasabasistocompareouroperatingperformancewiththatofotherREITs.WeandinvestorsmayuseCoreFFOsimilarlyasFFO.

However,becauseFFOandCoreFFOexclude,amongotheritems,depreciationandamortizationandcaptureneitherthechangesinthevalueofourbuildingsthatresultfromuseormarketconditionsofourbuildings,allofwhichhaverealeconomiceffectsandcouldmateriallyimpactourresultsfromoperations,theutilityofthesemeasuresasmeasuresofourperformanceislimited.Inaddition,otherREITsmaynotcalculateFFOinaccordancewiththeNAREITdefinitionaswedo,and,accordingly,ourFFOmaynotbecomparabletosuchotherREITs’FFO.Similarly,ourcalculationofCoreFFOmaynotbecomparabletosimilarlytitledmeasuresdisclosedbyotherREITs.

GAAP:WedefineGAAPasgenerallyacceptedaccountingprinciplesintheUnitedStates.

Liquidity:WedefineLiquidityastheamountofaggregateundrawnnominalcommitmentstheCompanycouldimmediatelyborrowundertheCompany’sunsecureddebtinstruments,consistentwiththefinancialcovenants,plusunrestrictedcashbalances.

Location Classification:We define primarymarkets as themarkets which have approximately 220million ormore in net rentable square footage.We definesecondaryindustrialmarketsasthemarketswhicheachhavenetrentablesquarefootagerangingfromapproximately27milliontoapproximately220million.Wedefinetertiarymarketsasmarketswithlessthan27millionsquarefeetofnetrentablesquarefootage.



UPDATE


Market:WedefineMarketasthemarketdefinedbyCoStarbasedonthebuildingaddress.IfthebuildingislocatedoutsideofaCoStardefinedmarket,thecityandstateisreflected.

Netoperatingincome(NOI),CashNOI,andRunRateCashNOI:WedefineNOIasrentalincome,includingreimbursements,lesspropertyexpenses,whichexcludesdepreciation, amortization, loss on impairments, general and administrative expenses, interest expense, interest income, transaction costs, gain (loss) oninvoluntaryconversion,lossonextinguishmentofdebt,gainonsalesofrentalproperty,andotherexpenses.

WedefineCashNOIasNOIlessstraight-linerentadjustmentsandlessamortizationofaboveandbelowmarketleases,net.

WedefineRunRateCashNOIasCashNOIplusCashNOIadjustedforafullperiodofacquisitionsanddispositions,lesscashterminationincome,solarincomeandrevenueassociatedwithone-timetenantreimbursementsofcapitalexpenditures.RunRateCashNOIdoesnotreflecttheCompany’shistoricalresultsanddoesnotpredictfutureresults,whichmaybesubstantiallydifferent.

WeconsiderNOI,CashNOIandRunRateCashNOItobeappropriatesupplementalperformancemeasurestonet incomebecausewebelievetheyhelpus,andinvestorsunderstandthecoreoperationsofourbuildings.Noneofthesemeasuresshouldbeconsideredasanalternativetonetincome(determinedinaccordancewithGAAP)asanindicationofourperformance,andwebelievethattounderstandourperformancefurther,thesemeasurementsshouldbecomparedwithourreportednetincomeornetlossinaccordancewithGAAP,aspresentedinourconsolidatedfinancialstatements.Further,ourcalculationsofNOI,CashNOIandRunRateNOImaynotbecomparabletosimilarlytitledmeasuresdisclosedbyotherREITs.

Non-RecurringCapitalExpenditures:WedefineNon-RecurringCapitalExpendituresascapitalitemsforupgradesoritemsthatpreviouslydidnotexistatabuildingorcapitalitemswhichhavealongerusefullife,suchasroofreplacements.Non-RecurringCapitalExpendituresfundedbypartiesotherthantheCompanyorcapitalexpendituresreimbursedbytenantsinlumpsumandAcquisitionCapitalExpendituresareexcluded.

OccupancyRate:WedefineOccupancyRateasthepercentageoftotalleasablesquarefootageforwhicheitherrevenuerecognitionhascommencedinaccordancewithGAAPortheleasetermhascommencedasofthecloseofthereportingperiod,whicheveroccursearlier.

OperatingPortfolio:WedefinetheOperatingPortfolioasallwarehouseandlightmanufacturingassetsthatwereacquiredstabilizedorhaveachievedStabilization.TheOperatingPortfolioexcludesnon-coreflex/officeassets,assetscontainedintheValueAddPortfolio,andassetsclassifiedasheldforsale.

Pipeline:WedefinePipelineasapoint intimemeasurethat includesallof thetransactionsunderconsiderationbytheCompany’sacquisitionsgroupthathavepassedtheinitialscreeningprocess.Thepipelinealsoincludestransactionsundercontractandtransactionswithnon-bindingLOIs.

RealEstateCostBasis:WedefineRealEstateCostBasisasthebookvalueofrentalpropertyanddeferredleasingintangibles,exclusiveoftherelatedaccumulateddepreciationandamortization.

RecurringCapitalExpenditures:WedefineRecurringCapitalExpendituresascapital itemsrequiredtosustainexistingsystemsandcapital itemswhichgenerallyhaveashorterusefullife.RecurringCapitalExpendituresfundedbypartiesotherthantheCompanyareexcluded.

RenewalLease:WedefineaRenewalLeaseasaleasesignedbyanexistingtenanttoextendthetermfor12monthsormore,including(i)arenewalofthesamespaceasthecurrentleaseat leaseexpiration,(ii)arenewalofonlyaportionofthecurrentspaceat leaseexpiration,or(iii)anearlyrenewalorworkout,whichultimatelydoesextendtheoriginaltermfor12monthsormore.



UPDATE


Retention:WedefineRetentionas thepercentagedeterminedbytakingRenewalLeasesquare footagecommencing in theperioddividedbysquare footageofleasesexpiringintheperiodforassetsincludedintheOperatingPortfolio.

SameStore:WedefineSameStorepropertiesaspropertiesthatwereintheOperatingPortfoliofortheentiretyofthecomparativeperiodspresented.SameStoreGAAPNOIandSameStoreCashNOIexcludeterminationfees,solarincome,andrevenueassociatedwithone-timetenantreimbursementsofcapitalexpenditures.

Stabilization:We define Stabilization for assets under development or redevelopment to occur as the earlier of achieving 90% occupancy or 12months aftercompletion.StabilizationforassetsthatwereacquiredandimmediatelyaddedtotheValueAddPortfoliooccursunderthefollowing:

• ifacquiredwithlessthan75%occupancyasoftheacquisitiondate,Stabilizationwilloccurupontheearlierofachieving90%occupancyor12monthsfromtheacquisitiondate;

• ifacquiredandwillbelessthan75%occupiedduetoknownmove-outswithintwoyearsoftheacquisitiondate,Stabilizationwilloccurupontheearlierofachieving90%occupancyaftertheknownmove-outshaveoccurredor12monthsaftertheknownmove-outshaveoccurred.

Straight-LineCapitalizationRate:WedefineStraight-LineCapitalizationRateascalculatedbydividing(i)theCompany’sestimateofaverageannualnetoperatingincomefromtheapplicableproperty’soperationsstabilizedforoccupancy(post-lease-upforvacantproperties),whichdoesnotincludeterminationincome,solarincome,miscellaneousotherincome,capitalexpenditures,generalandadministrativecosts,reserves,tenantimprovementsandleasingcommissions,creditloss,orvacancyloss,by(ii)theGAAPpurchasepriceplusestimatedAcquisitionCapitalExpenditures.TheseCapitalizationRateestimatesaresubjecttorisks,uncertainties,andassumptionsandarenotguaranteesoffutureperformance,whichmaybeaffectedbyknownandunknownrisks,trends,uncertainties,andfactorsthatarebeyondourcontrol,includingthoseriskfactorscontainedinourAnnualReportonForm10-KfortheyearendedDecember31,2019.

Straight-LineRentChange(SLRentChange):WedefineSLRentChangeasthepercentagechangeintheaveragemonthlybaserentoverthetermoftheleasethatcommenced during the period compared to the Comparable Lease for assets included in the Operating Portfolio. Rent under gross or similar type leases areconvertedtoanetrentbasedonanestimateoftheapplicablerecoverableexpenses,andthiscalculationexcludestheimpactofanyholdoverrent.

ValueAddPortfolio:WedefinetheValueAddPortfolioaspropertiesthatmeetanyofthefollowingcriteria:• lessthan75%occupiedasoftheacquisitiondate;• willbelessthan75%occupiedduetoknownmove-outswithintwoyearsoftheacquisitiondate;• outofservicewithsignificantphysicalrenovationoftheasset;• development.

WeightedAverage LeaseTerm:WedefineWeightedAverage Lease Termas the contractual lease term in years asof the lease start dateweightedby squarefootage.WeightedAverageLeaseTermrelatedtoacquiredassetsreflectstheremainingleaseterminyearsasoftheacquisitiondateweightedbysquarefootage.



UPDATE

Documents

Q2 2020 SUPPLEMENTAL...Top Right 78 37 (1) Pursuant to the adoption of ASC 842 effective January 1, 2019, tenant reimbursement revenue is now included in Rental Income. For the three