# EDGAR Filing Document

**Accession Number:** 0001479094
**File Stem:** 0001479094-23-000005
**Filing Date:** 2023-2
**Character Count:** 824172
**Document Hash:** 8b23db9f52a411eaee5ab4e576f1a466
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001479094-23-000005.hdr.sgml**: 20230215

**ACCESSION NUMBER**: 0001479094-23-000005

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 109

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230215

**DATE AS OF CHANGE**: 20230215

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** STAG Industrial, Inc.
- **CENTRAL INDEX KEY:** 0001479094
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **IRS NUMBER:** 273099608
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-34907
- **FILM NUMBER:** 23635470

**BUSINESS ADDRESS:**
- **STREET 1:** ONE FEDERAL STREET
- **STREET 2:** 23RD FLOOR
- **CITY:** BOSTON
- **STATE:** MA
- **ZIP:** 02110
- **BUSINESS PHONE:** (617)574-4777

**MAIL ADDRESS:**
- **STREET 1:** ONE FEDERAL STREET
- **STREET 2:** 23RD FLOOR
- **CITY:** BOSTON
- **STATE:** MA
- **ZIP:** 02110

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** STAG Industrial REIT, Inc.
- **DATE OF NAME CHANGE:** 20091218

?xml version="1.0" ? stag-20221231

<u>[**Table of Contents**](#ic34b9f2cdc6c4571bc486ff37be14e07_7)</u>

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-K** 

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

**For the fiscal year ended December 31, 2022** 

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .**

**Commission file number 1-34907** 

**STAG INDUSTRIAL, INC.** 

(Exact name of registrant as specified in its charter)

---

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

---

**(617) 574-4777** 

(Registrant's telephone number, including area code)

**Not Applicable**

(Former name, former address and former fiscal year, if changed since last report)

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

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, $0.01 par value | STAG | New York Stock Exchange |

---

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

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

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

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 ☒&nbsp;&nbsp;&nbsp;&nbsp; Accelerated filer ☐&nbsp;&nbsp;&nbsp;&nbsp; Non-accelerated filer ☐ &nbsp;&nbsp;&nbsp;&nbsp;Smaller reporting company ☐&nbsp;&nbsp;&nbsp;&nbsp; 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 has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

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

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant was approximately $5,526 million based on the closing price on the New York Stock Exchange as of June 30, 2022.

Number of shares of the registrant's common stock outstanding as of February 13, 2023: 179,329,037

**DOCUMENTS INCORPORATED BY REFERENCE**

Portions of the registrant's definitive Proxy Statement with respect to its 2023 Annual Meeting of Stockholders to be filed not later than 120 days after the end of the registrant's fiscal year are incorporated by reference into Part II, Item 5 and Part III, Items 10, 11, 12, 13 and 14 hereof as noted therein.

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<u>[**Table of Contents**](#ic34b9f2cdc6c4571bc486ff37be14e07_7)</u>

**STAG INDUSTRIAL, INC.**

**Table of Contents** 

---

| | | |
|:---|:---|:---|
| | <u>[PART I.](#ic34b9f2cdc6c4571bc486ff37be14e07_10)</u> | |
| <u>[Item 1.](#ic34b9f2cdc6c4571bc486ff37be14e07_13)</u> | <u>[Business](#ic34b9f2cdc6c4571bc486ff37be14e07_13)</u> | <u>[4](#ic34b9f2cdc6c4571bc486ff37be14e07_13)</u> |
| <u>[Item 1A.](#ic34b9f2cdc6c4571bc486ff37be14e07_16)</u> | <u>[Risk Factors](#ic34b9f2cdc6c4571bc486ff37be14e07_16)</u> | <u>[10](#ic34b9f2cdc6c4571bc486ff37be14e07_16)</u> |
| <u>[Item 1B.](#ic34b9f2cdc6c4571bc486ff37be14e07_19)</u> | <u>[Unresolved Staff Comments](#ic34b9f2cdc6c4571bc486ff37be14e07_19)</u> | <u>[24](#ic34b9f2cdc6c4571bc486ff37be14e07_19)</u> |
| <u>[Item 2.](#ic34b9f2cdc6c4571bc486ff37be14e07_22)</u> | <u>[Properties](#ic34b9f2cdc6c4571bc486ff37be14e07_22)</u> | <u>[24](#ic34b9f2cdc6c4571bc486ff37be14e07_22)</u> |
| <u>[Item 3.](#ic34b9f2cdc6c4571bc486ff37be14e07_25)</u> | <u>[Legal Proceedings](#ic34b9f2cdc6c4571bc486ff37be14e07_25)</u> | <u>[32](#ic34b9f2cdc6c4571bc486ff37be14e07_25)</u> |
| <u>[Item 4.](#ic34b9f2cdc6c4571bc486ff37be14e07_28)</u> | <u>[Mine Safety Disclosures](#ic34b9f2cdc6c4571bc486ff37be14e07_28)</u> | <u>[33](#ic34b9f2cdc6c4571bc486ff37be14e07_28)</u> |
|  | <u>[PART II.](#ic34b9f2cdc6c4571bc486ff37be14e07_31)</u> |  |
| <u>[Item 5.](#ic34b9f2cdc6c4571bc486ff37be14e07_34)</u> | <u>[Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](#ic34b9f2cdc6c4571bc486ff37be14e07_34)</u> | <u>[33](#ic34b9f2cdc6c4571bc486ff37be14e07_34)</u> |
| <u>[Item 6.](#ic34b9f2cdc6c4571bc486ff37be14e07_37)</u> | <u>[Reserved](#ic34b9f2cdc6c4571bc486ff37be14e07_37)</u> | <u>[34](#ic34b9f2cdc6c4571bc486ff37be14e07_37)</u> |
| <u>[Item 7.](#ic34b9f2cdc6c4571bc486ff37be14e07_40)</u> | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#ic34b9f2cdc6c4571bc486ff37be14e07_40)</u> | <u>[34](#ic34b9f2cdc6c4571bc486ff37be14e07_40)</u> |
| <u>[Item 7A.](#ic34b9f2cdc6c4571bc486ff37be14e07_58)</u> | <u>[Quantitative and Qualitative Disclosures About Market Risk](#ic34b9f2cdc6c4571bc486ff37be14e07_58)</u> | <u>[54](#ic34b9f2cdc6c4571bc486ff37be14e07_58)</u> |
| <u>[Item 8.](#ic34b9f2cdc6c4571bc486ff37be14e07_61)</u> | <u>[Financial Statements and Supplementary Data](#ic34b9f2cdc6c4571bc486ff37be14e07_61)</u> | <u>[54](#ic34b9f2cdc6c4571bc486ff37be14e07_61)</u> |
| <u>[Item 9.](#ic34b9f2cdc6c4571bc486ff37be14e07_64)</u> | <u>[Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#ic34b9f2cdc6c4571bc486ff37be14e07_64)</u> | <u>[54](#ic34b9f2cdc6c4571bc486ff37be14e07_64)</u> |
| <u>[Item 9A.](#ic34b9f2cdc6c4571bc486ff37be14e07_67)</u> | <u>[Controls and Procedures](#ic34b9f2cdc6c4571bc486ff37be14e07_67)</u> | <u>[54](#ic34b9f2cdc6c4571bc486ff37be14e07_67)</u> |
| <u>[Item 9B.](#ic34b9f2cdc6c4571bc486ff37be14e07_70)</u> | <u>[Other Information](#ic34b9f2cdc6c4571bc486ff37be14e07_70)</u> | <u>[55](#ic34b9f2cdc6c4571bc486ff37be14e07_70)</u> |
| <u>[Item 9C.](#ic34b9f2cdc6c4571bc486ff37be14e07_73)</u> | <u>[Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#ic34b9f2cdc6c4571bc486ff37be14e07_73)</u> | <u>[55](#ic34b9f2cdc6c4571bc486ff37be14e07_73)</u> |
|  | <u>[PART III.](#ic34b9f2cdc6c4571bc486ff37be14e07_76)</u> |  |
| <u>[Item 10.](#ic34b9f2cdc6c4571bc486ff37be14e07_79)</u> | <u>[Directors, Executive Officers and Corporate Governance](#ic34b9f2cdc6c4571bc486ff37be14e07_79)</u> | <u>[55](#ic34b9f2cdc6c4571bc486ff37be14e07_79)</u> |
| <u>[Item 11.](#ic34b9f2cdc6c4571bc486ff37be14e07_82)</u> | <u>[Executive Compensation](#ic34b9f2cdc6c4571bc486ff37be14e07_82)</u> | <u>[55](#ic34b9f2cdc6c4571bc486ff37be14e07_82)</u> |
| <u>[Item 12.](#ic34b9f2cdc6c4571bc486ff37be14e07_85)</u> | <u>[Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#ic34b9f2cdc6c4571bc486ff37be14e07_85)</u> | <u>[55](#ic34b9f2cdc6c4571bc486ff37be14e07_85)</u> |
| <u>[Item 13.](#ic34b9f2cdc6c4571bc486ff37be14e07_88)</u> | <u>[Certain Relationships and Related Transactions, and Director Independence](#ic34b9f2cdc6c4571bc486ff37be14e07_88)</u> | <u>[55](#ic34b9f2cdc6c4571bc486ff37be14e07_88)</u> |
| <u>[Item 14.](#ic34b9f2cdc6c4571bc486ff37be14e07_91)</u> | <u>[Principal Accountant Fees and Services](#ic34b9f2cdc6c4571bc486ff37be14e07_91)</u> | <u>[55](#ic34b9f2cdc6c4571bc486ff37be14e07_91)</u> |
|  | <u>[PART IV.](#ic34b9f2cdc6c4571bc486ff37be14e07_94)</u> |  |
| <u>[Item 15.](#ic34b9f2cdc6c4571bc486ff37be14e07_97)</u> | <u>[Exhibits and Financial Statement Schedules](#ic34b9f2cdc6c4571bc486ff37be14e07_97)</u> | <u>[56](#ic34b9f2cdc6c4571bc486ff37be14e07_97)</u> |
| <u>[Item 16.](#ic34b9f2cdc6c4571bc486ff37be14e07_100)</u> | <u>[Form 10-K Summary](#ic34b9f2cdc6c4571bc486ff37be14e07_100)</u> | <u>[58](#ic34b9f2cdc6c4571bc486ff37be14e07_100)</u> |

---

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<u>[**Table of Contents**](#ic34b9f2cdc6c4571bc486ff37be14e07_7)</u>

**PART I.**

**Introduction** 

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. (our "Operating Partnership").

**Forward-Looking Statements**

This report, including the information incorporated by reference, 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:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risk of global or national recessions and international, national, regional, and local economic conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to raise equity capital on attractive terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the competitive environment in which we operate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• decreased rental rates or increased vacancy rates;

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the timing of acquisitions and dispositions;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential natural disasters, epidemics, pandemics or outbreak of infectious disease, such as the novel coronavirus disease ("COVID-19"), and other potentially catastrophic events such as acts of war and/or terrorism (including the conflict between Russia and Ukraine and the related impact on macroeconomic conditions as a result of such conflict);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the general level of interest rates and currencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• how and when pending forward equity sales may settle;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• lack of or insufficient amounts of insurance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to maintain our qualification as a REIT;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to retain key personnel;

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

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<u>[**Table of Contents**](#ic34b9f2cdc6c4571bc486ff37be14e07_7)</u>

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

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

**Item 1. Business**

**Certain Definitions**

In this report:

"GAAP" means generally accepted accounting principles in the United States.

"Total annualized base rental revenue" means the contractual monthly base rent as of December 31, 2022 (which differs from rent calculated in accordance with GAAP) multiplied by 12. If a tenant is in a free rent period as of December 31, 2022, the total annualized base rental revenue is calculated based on the first contractual monthly base rent amount multiplied by 12.

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

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

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

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

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

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

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

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

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

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"Weighted Average Lease Term" means the contractual lease term in years, assuming that tenants exercise no renewal options, purchase options, or early termination rights, weighted by square footage.

**Overview**

We are a REIT focused on the acquisition, ownership and operation of industrial properties throughout the United States. We seek to (i) identify properties for acquisition that offer relative value across all locations, industrial property types, and tenants through the principled application of our proprietary risk assessment model, (ii) operate our properties in an efficient, cost-effective manner, and (iii) capitalize our business appropriately given the characteristics of our assets.

We are organized and conduct our operations to maintain our qualification as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the "Code"), 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.

As of December 31, 2022, we owned 562 buildings in 41 states with approximately 111.7 million rentable square feet, consisting of 484 warehouse/distribution buildings, 74 light manufacturing buildings, one flex/office building, and three Value Add Portfolio buildings. While the majority of our portfolio consists of single-tenant properties, we also own multi-tenant properties and may re-lease originally single-tenant properties to multiple tenants. As of December 31, 2022, our buildings were approximately 98.5% leased, with no single tenant accounting for more than approximately 3.0% of our total annualized base rental revenue and no single industry accounting for more than approximately 10.9% of our total annualized base rental revenue. We intend to maintain a diversified mix of tenants to limit our exposure to any single tenant.

As of December 31, 2022, our Operating Portfolio was approximately 99.0% leased and our SL Rent Change on new and renewal leases together grew approximately 24.3% and 17.6% during the years ended December 31, 2022 and 2021, respectively, and our Cash Rent Change on new and renewal leases together grew approximately 14.3% and 10.4% during the years ended December 31, 2022 and 2021, respectively.

We have a fully-integrated acquisition, leasing and asset management platform, and our senior management team has a significant amount of industrial real estate experience. Our mission is to continue to be a disciplined, relative value investor and a leading owner and operator of industrial properties in the United States. We seek to deliver attractive stockholder returns in all market environments by providing a covered dividend combined with accretive growth.

**Our Strategy**

Our primary business objectives are to own and operate a balanced and diversified portfolio of binary risk investments (individual industrial properties) that maximize cash flows available for distribution to our stockholders, and to enhance stockholder value over time by achieving sustainable long-term growth in distributable cash flow from operations per share.

We believe that our focus on owning and operating a portfolio of individually-acquired industrial properties throughout the United States will, when compared to other real estate portfolios, generate returns for our stockholders that are attractive in light of the associated risks for the following reasons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Since many industrial properties have a single tenant, buyers tend to price an individual industrial property according to the binary nature of its cash flows – with only one potential tenant, the property is either generating revenue or not. Furthermore, if a single-tenant industrial property is vacant and not generating revenue, the owner will be responsible for paying the operating expenses at the property (which are typically covered by the tenant). As a result of these factors, we believe the market prices single-tenant industrial properties based upon a higher risk profile, and therefore, applies a lower value relative to a diversified cash flowing investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The acquisition and contribution of individual single-tenant industrial properties (and each property's binary risk cash flows) to an aggregated portfolio creates diversification, thereby lowering risk and creating value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Industrial properties generally require less capital expenditure than other commercial property types and single-tenant properties generally require less expenditure for leasing, operating, and capital costs per property than multi-tenant properties.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other institutional, industrial real estate buyers tend to focus on properties and portfolios in certain primary markets. In contrast, we focus on individual industrial properties across many markets. As a result, our typical competitors for acquisition opportunities are local investors who may not have the same access to debt or equity capital as us. In our fragmented, predominantly non-institutional environment, a sophisticated, institutional platform with access to capital has execution and operational advantages.

**Regulation**

***General***

We are subject to various laws, ordinances, rules and regulations of the United States and the states and local municipalities in which we own properties, including regulations relating to common areas and fire and safety requirements. We believe that we or our tenants, as applicable, have the necessary permits and approvals to operate each of our properties.

***Americans with Disabilities Act***

Our properties must comply with Title III of the Americans with Disabilities Act of 1990, as amended (the "ADA") to the extent that such properties are "public accommodations" as defined under the ADA. Under the ADA, places of public accommodation must meet certain federal requirements related to access and use by disabled persons. The ADA may require removal of structural barriers to access by persons with disabilities in certain public areas of our properties where such removal is readily achievable. Although we believe that the properties in our portfolio in the aggregate substantially comply with current requirements of the ADA, and we have not received any notice for correction from any regulatory agency, we have not conducted a comprehensive audit or investigation of all of our properties to determine whether we are in compliance and therefore we may own properties that are not in compliance with the ADA.

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

***Environmental Matters***

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

Environmental laws in the United States also require that owners of buildings containing asbestos properly manage and maintain the asbestos, adequately inform or train those who may come into contact with asbestos and undertake special precautions, including removal or other abatement, in the event that asbestos is disturbed during building renovation or demolition. These laws may impose fines and penalties on owners or who fail to comply with these requirements and may allow third parties to seek recovery from owners for personal injury associated with exposure to asbestos. Some of our buildings are known to have asbestos containing materials, and others, due to the age of the building and observed conditions, are suspected of having asbestos containing materials. We do not believe these conditions will materially and adversely affect us. In most or all instances, no immediate action was recommended to address the conditions.

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Furthermore, various court decisions have established that third parties may recover damages for injury caused by property contamination. For instance, a person exposed to asbestos at one of our properties may seek to recover damages if he or she suffers injury from the asbestos. Lastly, some of these environmental laws restrict the use of a property or place conditions on various activities. An example would be laws that require a business using chemicals to manage them carefully and to notify local officials that the chemicals are being used.

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

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

Compliance with these environmental laws, rules and regulations has not had, and is not expected to have, a material effect on our capital expenditures, results of operations and competitive position as compared to prior periods. We can make no assurances that future laws, ordinances or regulations will not impose material environmental liabilities on us, or the current environmental condition of our properties will not be affected by tenants, the condition of land or operations in the vicinity of our properties (such as releases from underground storage tanks), or by third parties unrelated to us.

**Insurance**

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

**Competition**

In acquiring our target properties, we compete primarily with local or regional operators due to the smaller, single asset (versus portfolio) focus of our acquisition strategy. From time to time we compete with other public industrial property sector REITs, single-tenant REITs, income oriented non-traded REITs, and private real estate funds. Local real estate investors historically have represented our predominant competition for deals and they typically do not have the same access to capital that we do as a publicly traded institution. We also face significant competition from owners and managers of competing properties in leasing our properties to prospective tenants and in re-leasing space to existing tenants.

**Operating Segments**

We manage our operations on an aggregated, single segment basis for purposes of assessing performance and making operating decisions, and accordingly, have only one reporting and operating segment. See Note 2 in the accompanying Notes to Consolidated Financial Statements under "Segment Reporting."

**Corporate Responsibility Program**

We are committed to maintaining a robust corporate responsibility program that incorporates environmental, social and governance ("ESG") initiatives into our overall business, investment, and asset management strategies. We are also committed to transparent reporting of our ESG initiatives. In December 2021, we published our inaugural 2020-2021 Environmental,

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Social and Governance Report, which includes information regarding our ESG policies and programs, historic results, and performance targets, including a new long-term greenhouse gas (GHG) reduction goal as approved by the Science-Based Targets Initiative (SBTi). In addition, annually we participate in the public disclosure rating process of the Global Real Estate Sustainability Benchmark, which is an entity that provides a ranking system to evaluate and compare ESG practices in the real estate industry.

Additional information regarding our corporate responsibility program will be included in our definitive Proxy Statement for our 2023 Annual Meeting of Stockholders and our 2020-2021 Environmental, Social and Governance Report is currently available under the "Corporate Responsibility" section of our website at www.stagindustrial.com. However, the information located on, or accessible from, our website, including our sustainability report, is not, and should not be deemed to be, part of this report or incorporated into any other filing that we submit to the Securities and Exchange Commission ("SEC").

**Human Capital Management**

We believe that demonstrating strong financial performance while also promoting awareness and respect for fundamental human rights is important to long-term value creation, business continuity and corporate success. As part of our commitment to providing a work environment that attracts, develops and retains high-performing individuals and that treats employees with dignity and respect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We offer equal employment opportunities to all of our employees and seek to foster a diverse and vibrant workplace with employees who possess a broad range of experiences, backgrounds, and skills. We continually assess and strive to enhance employee satisfaction and engagement. Our employees, many of whom have a relatively long tenure with the Company, have regular opportunities to participate in personal growth and professional development programs and social or team building events. We seek to identify and develop future leaders within the Company and periodically review with our Chief Executive Officer and board of directors the identity, skills, and characteristics of those persons who could succeed to senior and executive positions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We endeavor to maintain a workplace free from discrimination or harassment on the basis of race, color, religion, creed, gender, gender identity or expression, sexual orientation, genetic information, national origin, ancestry, age, disability, military or veteran status, and political affiliate or activities, among others. We conduct training to prevent discrimination and harassment and monitor and address employee conduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are committed to compensating our employees well and at competitive industry rates while, at the same time, monitoring our compensation programs to ensure that we are continuously attracting and retaining top talent. We also provide our employees with highly competitive health and wellness benefits, including medical, dental, vision, life, and short-term disability insurance, with premiums that are entirely paid for by the Company. We also offer flexible spending accounts for medical and dependent care, a program to pay commuting and office parking costs with pre-tax income, and a competitive vacation policy, including paid holidays, personal time off, and other leave benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We seek to foster a corporate culture where our stakeholders, including our employees, engage in, and collaborate to extend resources towards, community development. In furtherance of this commitment, we partner with, and support, local charitable organizations that we believe are contributing to the growth and development of the community, particularly organizations assisting at-risk youth. Through our partnerships with these organizations, in recent years, our employees have committed significant time and resources to support children and young adults, including through personal donations, fundraising, and volunteer work.

As of December 31, 2022, we had 93 employees. None of our employees are represented by a labor union.

Additional information regarding our human capital programs and initiatives will be included in our definitive Proxy Statement for our 2023 Annual Meeting of Stockholders and is currently available under the "Corporate Responsibility" section of our website at *www.stagindustrial.com.* However, the information located on, or accessible from, our website is not, and should not be deemed to be, part of this report or incorporated into any other filing that we submit to the SEC.

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**Our Corporate Structure**

STAG Industrial, Inc. was incorporated in Maryland on July 21, 2010. Shares of our common stock are publicly traded on the NYSE New York Stock Exchange ("NYSE") under the symbol "STAG."

Our Operating Partnership was formed as a Delaware limited partnership on December 21, 2009. We own all of our properties and conduct substantially all of our business through our Operating Partnership. We are the sole member of the sole general partner of our Operating Partnership. As of December 31, 2022, we owned approximately 97.9% of the common units of limited partnership interest in our Operating Partnership ("common units"), and our current and former executive officers, directors, employees and their affiliates, and third parties owned the remaining 2.1%. The common units are not publicly traded, but each common unit receives the same distribution as a share of our common stock, the value of each common unit is tied to the value of a share of our common stock, and each common unit, after one year, generally may be redeemed (that is, exchanged) for cash in an amount equivalent to the value of a share of our common stock or, if we choose, for a share of common stock on a one-for-one basis. When redeeming common units for cash, the value of a share of our common stock is calculated as the average common stock closing price on the NYSE for the 10 trading days immediately preceding the redemption notice date.

We are structured as an umbrella partnership REIT, also known as an "UPREIT," with our publicly-traded entity, STAG Industrial, Inc., operating as the REIT in the UPREIT structure, and our Operating Partnership operating as the umbrella partnership. This UPREIT structure provides us an opportunity to acquire properties on a tax-deferred basis by issuing common units in our Operating Partnership in exchange for properties.

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The following is a simplified diagram of our UPREIT structure at December 31, 2022.

![stag-20221231_g1.jpg](stag-20221231_g1.jpg)

**Additional Information**

Our principal executive offices are located at One Federal Street, 23rd Floor, Boston, Massachusetts 02110. Our telephone number is (617) 574-4777.

Our website is www.stagindustrial.com. Our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K and any amendments to any of those reports that we file with the SEC are available free of charge as soon as reasonably practicable through our website at www.stagindustrial.com. Also posted on our website, and available in print upon request, are charters of each committee of the board of directors, our code of business conduct and ethics and our corporate governance guidelines. Within the time period required by the SEC, we will post on our website any amendment to the code of business conduct and ethics and any waiver applicable to any executive officer, director or senior financial officer. The information found on, or otherwise accessible through, our website is not incorporated into, and does not form a part of, this report or any other report or document we file with or furnish to the SEC.

All reports, proxy and information statements and other information we file with the SEC are also available free of charge through the SEC's website at www.sec.gov.

**Item 1A. Risk Factors**

The following risk factors and other information included in this report should be carefully considered. The risks and uncertainties described below are not the only risks we face. Additional risks and uncertainties not presently known to us or that we may currently deem immaterial also may impair our business operations.

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**Risks Related to Our Business and Operations**

***Adverse economic conditions may adversely affect our operating results and financial condition.***

Our operating results and financial condition may be affected by market and economic challenges and uncertainties, which may result from a general economic downturn experienced by the nation as a whole, by the local economies where our properties are located or our tenants conduct business, or by the real estate industry, including the following: (i) poor economic conditions may result in tenant defaults under leases and extended vacancies at our properties; (ii) re-leasing may require concessions or reduced rental rates under the new leases due to reduced demand; (iii) adverse capital and credit market conditions may restrict our operating activities; and (iv) constricted access to credit may result in tenant defaults, non-renewals under leases or inability of potential buyers to acquire properties held for sale.

Also, to the extent we purchase real estate in an unstable market, we are subject to the risk that if the real estate market ceases to attract the same level of capital investment in the future, or the number of companies seeking to acquire properties decreases, the value of our investments may not appreciate or may decrease significantly below the amount we paid for these investments. Our operating results and financial condition could be negatively affected to the extent that an economic slowdown or downturn is prolonged or becomes more severe.

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

During the year ended December 31, 2022, inflation in the United States accelerated and is currently expected to continue at an elevated level in the near-term. Beginning in 2022, in an effort to combat inflation and restore price stability, the Federal Reserve significantly raised its benchmark federal funds rate, which led to increases in interest rates in the credit markets. The Federal Reserve may continue to raise the federal funds rate, which will likely lead to higher interest rates in the credit markets and the possibility of slowing economic growth and/or a recession. Additionally, U.S. government policies implemented to address inflation, including actions by the Federal Reserve to increase interest rates, could negatively impact consumer spending, our tenants' businesses, and/or future demand for industrial space.

Rising inflation could also have an adverse impact on our financing costs (either through near-term borrowings on our variable rate debt, including our unsecured credit facility, or refinancing of existing debt at higher interest rates), and general and administrative expenses and property operating expenses, as these costs could increase at a rate higher than our rental and other revenue. To the extent our exposure to increases in interest rates is not eliminated through interest rate swaps or other protection agreements, such increases may also result in higher debt service costs, which will adversely affect our cash flows. Historically, during periods of increasing interest rates, real estate valuations have generally decreased due to rising capitalization rates, which tend to move directionally with interest rates. Consequently, prolonged periods of higher interest rates may negatively impact the valuation of our real estate assets and could result in the decline of the market price of our common stock, which may adversely impact our ability and willingness to raise equity capital on favorable terms, including through our at-the-market ("ATM") common stock offering program. Although the extent of any prolonged periods of higher interest rates remains unknown at this time, negative impacts to our cost of capital may adversely affect our future business plans and growth, at least in the near term.

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

As of December 31, 2022, the majority of our buildings were industrial properties. This concentration may expose us to the risk of economic downturns in the industrial real estate sector to a greater extent than if our properties were more diversified across other sectors of the real estate industry.

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

We are subject to certain geographic and industry concentrations with respect to our properties. As a result of these concentrations, any adverse event or downturn in local economic conditions or industry conditions, changes in state or local governmental rules and regulations, acts of nature, epidemics, pandemics or other public health crises and actions taken in response thereto, and other factors affecting these markets or industries could adversely affect us and our tenants operating in those markets or industries. If any tenant is unable to withstand such adverse event or downturn or is otherwise unable to

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compete effectively in its market or business, it may be unable to meet its rental obligations, seek rental concessions, be unable to enter into new leases or forced to declare bankruptcy and reject our leases, which could materially and adversely affect us.

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

Of the properties in our portfolio at December 31, 2022, 266 buildings totaling approximately 52.3 million rentable square feet have been acquired in the past five years. These properties may have characteristics or deficiencies unknown to us that could affect their valuation or revenue potential and such properties may not ultimately perform up to our expectations. We cannot assure you that the operating performance of the properties will not decline under our management.

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

The acquisition of properties entails various risks, including the risk that our investments may not perform as we expect. Our ability to continue to acquire properties in our pipeline that we believe to be suitable and compatible with our growth strategy may be constrained by numerous factors, including our ability to negotiate and execute a mutually-acceptable definitive purchase and sale agreement with the seller, our completion of satisfactory due diligence and the satisfaction of customary closing conditions, including the receipt of third-party consents and approvals. Further, we face competition for attractive investment opportunities from other well-capitalized real estate investors, including publicly-traded and non-traded REITs, private equity investors and other institutional investment funds that may have greater financial resources and a greater ability to borrow funds to acquire properties, the ability to offer more attractive terms to prospective tenants and the willingness to accept greater risk or lower returns than we can prudently manage. This competition may increase the demand for our target properties and, therefore, reduce the number of, or increase the price for, suitable acquisition opportunities, all of which could materially and adversely affect us. This competition will increase as investments in real estate become increasingly attractive relative to other forms of investment. In addition, we expect to finance future acquisitions through a combination of secured and unsecured borrowings, proceeds from equity or debt offerings by us or our Operating Partnership or its subsidiaries and proceeds from property contributions and divestitures which may not be available and which could adversely affect our cash flows.

***We may face risks associated with acquiring properties in unfamiliar markets.***

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

***A significant portion of our properties have leases that expire in the next two years and we may be unable to renew leases, lease vacant space or re-lease space on favorable terms.***

Our operating results, cash flows, cash available for distribution, and the market price of our securities would be adversely affected if we are unable to lease, on economically favorable terms, a significant amount of space in our properties. Our properties may have some level of vacancy at the time of our acquisition and may incur a vacancy either by the continued default of a tenant under its lease or the expiration of one of our leases. As of December 31, 2022, leases with respect to approximately 19.5% (excluding month-to-month leases) of our total annualized base rental revenue will expire before December 31, 2024. We cannot assure you that expiring leases will be renewed or that our properties will be re-leased at base rental rates equal to or above the current market rental rates. In addition, our ability to release space at attractive rental rates will depend on (i) whether the property is specifically suited to the particular needs of a tenant, and (ii) the number of vacant or partially vacant industrial properties in a market or sub-market. In connection with a vacancy at one of our properties, we may face difficulty obtaining, or be unable to obtain, a new tenant for the vacant space. If the vacancy continues for a long period of time, we may suffer reduced revenue resulting in less cash available for distribution to stockholders and the resale value of the property could be diminished.

***We face significant competition for tenants, which may negatively impact the occupancy and rental rates at our properties.***

We compete with other owners, operators and developers of real estate, some of which own industrial properties in the same markets and sub-markets in which our properties are located. If our competitors offer space at rental rates below current market rates or below the rental rates we currently charge our tenants, we may lose potential tenants, and we may be pressured to lower

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our rental rates or to offer more substantial tenant improvements, early termination rights, below-market renewal options or other lease incentive payments to remain competitive. Competition for tenants could negatively impact the occupancy and rental rates of our properties.

***Default by one or more of our tenants could materially and adversely affect us, and bankruptcy laws limit our remedies in the event of a tenant default.***

The success of our tenants in operating their businesses will continue to be impacted by many current economic challenges, which impact their cost of doing business, including, but not limited to, inflation, labor shortages, supply chain constraints and increasing energy prices and interest rates. Additionally, macroeconomic and geopolitical risks create challenges that may exacerbate current market conditions in the United States. Any of our tenants may experience an adverse event or downturn in its business at any time that may significantly weaken its financial condition or cause its failure. As a result, such a tenant may fail to make rental payments when due, decline to extend or renew its lease upon expiration and/or declare bankruptcy and reject our lease. The default, financial distress or bankruptcy of a tenant could cause interruptions in the receipt of rental revenue and/or result in a vacancy, which is, in the case of a single-tenant property, likely to result in the complete reduction in the operating cash flows generated by the property and may decrease the value of that property. In addition, a majority of our leases generally require the tenant to pay all or substantially all of the operating expenses associated with the ownership of the property, such as utilities, real estate taxes, insurance and routine maintenance. Following a vacancy at a single-tenant property, we will be responsible for all of the operating costs at such property until it can be re-let, if at all.

The bankruptcy or insolvency of a tenant could diminish the income we receive from that tenant's lease and we may not be able to evict a tenant solely because of its bankruptcy filing. On the other hand, a bankruptcy court might authorize the tenant to terminate its lease with us. If that happens, our claim against the bankrupt tenant for unpaid future rent would be an unsecured pre-petition claim, subject to statutory limitations, and therefore such amounts received in bankruptcy are likely to be substantially less than the remaining rent we otherwise were owed under the lease. In addition, any claim we have for unpaid past rent could be substantially less than the amount owed.

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

Many of our tenants rely on external sources of financing to operate their businesses. The U.S. financial and credit markets have recently experienced liquidity disruptions, resulting in volatility in the markets and the unavailability of financing for many businesses. If such disruptions worsen or continue for a prolonged period of time, any of these tenants may be unable to obtain financing necessary to continue to operate its business, unable to meet its rental obligations, unable to enter into new leases or forced to declare bankruptcy and reject our leases, which could materially and adversely affect us.

***The COVID-19 pandemic or any future public health crisis, pandemic, epidemic or outbreak of infectious disease could have material and adverse effects on our business, operating results, financial condition and cash flows.***

Any future public health crisis, pandemic, epidemic or outbreak of infectious disease, such as the COVID-19 pandemic, could have material and adverse effects on our business, operating results, financial condition and cash flows due to, among other factors: (i) government authorities requiring the closure of offices or other businesses or instituting quarantines of personnel; (ii) disruption in global supply and delivery chains; (iii) a general decline in business activity and demand for real estate; (iv) repurposing or redevelopment of defunct retail properties into industrial properties; (v) reduced economic activity, general economic decline or recession, which may impact our tenants' businesses 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; (vi) difficulty accessing debt and equity capital on attractive terms, or at all; and (vii) the potential negative impact on the health of our personnel or our ability to recruit and retain key employees.

**Risks Related to Our Organization and Structure**

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

In order to maintain our qualification as a REIT, we are generally required under the Code to annually distribute at least 90% of our net taxable income, determined without regard to the dividends paid deduction and excluding any net capital gain. In addition, we will be subject to federal income tax at regular corporate rates to the extent that we distribute less than 100% of our net taxable income, including any net capital gains. Because of these requirements, we may not be able to fund future capital

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needs, including acquisition financing, from operating cash flow and rely on third-party sources to fund our capital needs. Our access to third-party sources of capital depends, in part, on general market conditions, the market's perception of our growth potential, our current debt levels, our current and expected future earnings, our cash flow and distributions and the market price of our common stock. If we cannot raise equity or obtain financing from third-party sources on favorable terms, or at all, we may not be able to acquire properties when opportunities exist, meet the capital and operating needs of our existing properties or satisfy our debt service obligations. To the extent that capital is not available to acquire properties, profits may not be realized or their realization may be delayed, which could result in an earnings stream that is less predictable than some of our competitors or a failure to meet our projected earnings and distributable cash flow levels in a particular reporting period. Further, in order to meet the REIT distribution requirements and avoid the payment of income and excise taxes, we may need to borrow funds on a short-term basis even if the then-prevailing market conditions are not favorable for these borrowings. These short-term borrowing needs could result from differences in timing between the actual receipt of cash and inclusion of income for federal income tax purposes or the effect of non-deductible capital expenditures, the creation of reserves, certain restrictions on distributions under loan documents or required debt or amortization payments.

***Certain provisions of our governing documents and Maryland law may delay or prevent a transaction or a change of control that might be in the best interest of stockholders.***

Our charter and bylaws, the Operating Partnership agreement and Maryland law contain provisions that may delay or prevent a transaction or a change of control, including, among other provisions, the following:

***Our charter contains 9.8% ownership limits.*** Our charter, subject to certain exceptions, authorizes our directors to take such actions as are necessary and desirable to limit any person to actual or constructive ownership of no more than 9.8% in value or in number of shares, whichever is more restrictive, of the outstanding shares of our capital stock and no more than 9.8% in value or in number of shares, whichever is more restrictive, of the outstanding shares of our common stock. While our board of directors, in its sole discretion, may exempt a proposed transferee from the ownership limits, it may not grant an exemption to any proposed transferee whose ownership could jeopardize our REIT status. These ownership limits may delay or prevent a transaction or a change of control that might be in the best interest of stockholders.

***Our board of directors may create and issue a class or series of preferred stock without stockholder approval.*** Our board of directors may amend our charter, without stockholder approval, to (i) increase or decrease the aggregate number of shares of common stock or the number of shares of stock of any class or series, (ii) designate and issue from time to time one or more classes or series of preferred stock, (iii) classify or reclassify any unissued shares of stock, and (iv) determine the relative rights, preferences and privileges of any class or series of preferred stock. The issuance of preferred stock could have the effect of delaying or preventing a transaction or a change of control that might be in the best interests of stockholders.

***Certain provisions in the Operating Partnership agreement may delay or prevent a change of control.*** Provisions in the Operating Partnership agreement could discourage third parties from making proposals involving an unsolicited acquisition or change of control transaction, although some stockholders might consider such proposals, if made, desirable. These provisions include, among others, redemption rights, transfer restrictions on the common units, the ability of the general partner to amend certain provisions in the Operating Partnership agreement without the consent of limited partners and the right of limited partners to consent to certain mergers and transfers of the general partnership interest. In addition, any potential change of control transaction may be further limited as a result of provisions related to the long-term incentive plan units in our Operating Partnership ("LTIP units") granted under the STAG Industrial, Inc. 2011 Equity Incentive Plan, as amended and restated (the "2011 Plan"), which require us to preserve the rights of LTIP unit holders and may restrict us from amending the Operating Partnership agreement in a manner that would have an adverse effect on the rights of LTIP unit holders.

***Certain provisions of Maryland law could delay or prevent a change in control.*** Title 8, Subtitle 3 of the Maryland General Corporation Law ("MGCL"), permits our board of directors, without stockholder approval, to implement certain takeover defenses, some of which (for example, a classified board) we do not currently have. These provisions and other provisions of Maryland law may have the effect of inhibiting a third party from making an acquisition proposal or delaying or preventing a change of control under circumstances that might be in the best interest of stockholders.

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

Our board of directors has the general authority to oversee our operations and determine our major corporate policies. This authority includes significant flexibility and allows the board to take many actions, without stockholder approval, that could increase our operating expenses, impact our ability to make distributions or reduce the value of our assets. For example, our board of directors can, among other things, (i) change our investment, financing and borrowing strategies and our policies with respect to all other activities, including distributions, leasing, debt, capitalization and operations (including creditworthiness

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standards with respect to our tenants), (ii) subject to provisions in our charter, prevent the ownership, transfer and accumulation of shares in order to protect our status as a REIT or for any other reason deemed to be in the best interests of us and our stockholders, (iii) issue additional shares (which could dilute the ownership of existing stockholders) and increase or decrease the aggregate number of shares or the number of shares of any class or series or classify or reclassify any unissued shares, without obtaining stockholder approval, and (iv) determine that it is no longer in our best interests to continue to qualify as a REIT.

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

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

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

We have fiduciary duties to the other limited partners in our Operating Partnership, including members of our management team and board of directors, the discharge of which may conflict with the interests of our stockholders. In addition, those persons holding common units will have the right to vote on certain amendments to the Operating Partnership agreement. These voting rights may be exercised in a manner that conflicts with the interests of our stockholders. For example, we are unable to modify the rights of limited partners to receive distributions as set forth in the Operating Partnership agreement in a manner that adversely affects their rights without their consent, even though such modification might be in the best interest of our stockholders.

Conflicts also may arise when the interests of our stockholders and the limited partners of our Operating Partnership diverge, particularly in circumstances in which there may be an adverse tax consequence to the limited partners. As a result of unrealized built-in gain attributable to contributed properties at the time of contribution, some holders of common units, including members of our management team, may suffer more adverse tax consequences than our stockholders upon the sale or refinancing of certain properties, including disproportionately greater allocations of items of taxable income and gain upon a realization event. As those holders will not receive a correspondingly greater distribution of cash proceeds, they may have different objectives regarding the appropriate pricing, timing and other material terms of any sale or refinancing of certain properties, or whether to sell or refinance such properties at all.

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

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

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**Risks Related to Ownership of Our Common Stock**

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

The market price for our common stock has experienced significant price and volume fluctuations, often without regard to our operating performance. If the market price of our common stock declines significantly, you may be unable to sell your shares at or above the price at which you acquired them. A number of factors could negatively affect the market price or trading volume of our common stock, many of which are out of our control, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actual or anticipated variations in our quarterly operating results or those of our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• publication of research reports about us, our competitors, our tenants or the real estate industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in our distribution policy;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the market's perception of equity investments in REITs and changes in market valuations of similar REITs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• difficulties or inability to access capital or extend or refinance existing debt or an adverse market reaction to any increased indebtedness we incur in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a change in credit ratings issued by analysts or nationally recognized statistical rating organizations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• additions or departures of key management personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actions by institutional stockholders or speculation in the press or investment community; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general U.S. and worldwide market and economic conditions.

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

Distributions will be authorized and determined by our board of directors in its sole discretion from time to time and will depend upon a number of factors, including cash available for distribution, our operating results, operating expenses and financial condition (especially in relation to our anticipated future capital needs), REIT distribution requirements under the Code and other factors the board deems relevant. Consequently, our distribution levels may fluctuate. In addition, to the extent that we make distributions in excess of our current and accumulated earnings and profits, such distributions would generally be considered a return of capital for federal income tax purposes to the extent of the holder's adjusted tax basis in its shares. A return of capital is not taxable, but it has the effect of reducing the holder's adjusted tax basis in its investment. To the extent that distributions exceed the adjusted tax basis of a holder's shares, they will be treated as gain from the sale or exchange of such stock. Further, if we borrow funds to make distributions, our future interest costs would increase, thereby reducing our earnings and cash available for distribution from what they otherwise would have been.

***The number of shares of our common stock available for future sale, and future offerings of debt or equity securities may be dilutive to existing stockholders and adversely affect the market price of our common stock.***

Our ability to execute our business strategy depends on our access to an appropriate blend of equity and debt financing, including common and preferred stock, debt securities, lines of credit and other forms of secured and unsecured debt. We have filed a registration statement with the SEC allowing us to offer, from time to time, an indefinite amount of equity and debt securities on an as-needed basis, including shares under our ATM common stock offering program. Sales of a substantial number of shares of our common stock (or the perception that such sales might occur), the vesting of equity awards under the 2011 Plan, the issuance of common stock or common units in connection with acquisitions, and other equity issuances may dilute the holdings of our existing stockholders or reduce the market prices of our securities, or both. Holders of our common stock are not entitled to preemptive rights or other protections against dilution. In addition, we may attempt to increase our capital resources by issuing preferred stock or debt securities (including commercial paper, medium-term notes and senior or subordinated notes). Any future issuances of preferred stock will rank senior to our common stock with respect to distributions and liquidation rights, which could limit our ability to make distributions to holders of common stock. In addition, upon liquidation, holders of debt securities would receive a distribution of our available assets prior to any distribution to the holders of common stock. Because our decision to issue securities in any future offering will depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing, or nature of our future offerings. Thus, our stockholders bear the risk of future offerings reducing the market prices of our securities and diluting their proportionate ownership.

***We have in the past entered, and may in the future enter, into forward sale transactions that subject us to certain risks.***

We have previously entered into forward sale agreements and may in the future enter into additional forward sale agreements, including under our ATM common stock offering program, that subject us to certain risks. The future issuance of any shares of

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common stock upon settlement of any forward sale agreement will result in dilution to our earnings per share, return on equity, and dividends per share. The purchase of common stock in connection with the unwinding of the forward purchaser's hedge position could cause our stock price to increase (or prevent a decrease) over such time, thereby increasing the amount of cash we would owe (or decreasing the amount of cash owed to us) upon a cash settlement. In addition, pursuant to each forward sale agreement, the relevant forward purchaser will have the right to accelerate the settlement of the forward sale agreement in connection with certain specified events. In such cases, we could be required to settle that particular forward sale agreement and issue common stock irrespective of our capital needs.

Under Section 1032 of the Code, generally, no gains and losses are recognized by a corporation in dealing in its own shares, including pursuant to a "securities futures contract" as defined in the Code. However, because it is not clear whether a forward sale agreement qualifies as a "securities futures contract," the U.S. federal income tax treatment of any cash settlement payment is uncertain. In the event that we recognize a significant gain from a forward sale agreement, we may not be able to satisfy the gross income requirements applicable to REITs under the Code, may not be able to rely upon certain relief provisions and could lose our REIT status under the Code. Even if relief provisions apply, we would be subject to a tax based on the amount of non-qualifying income.

**General Real Estate Risks**

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a global economic crisis that results in increased budget deficits and weakened financial condition of international, national and local governments, which may lead to reduced governmental spending, tax increases, public sector job losses, increased interest rates, currency devaluations, defaults on debt obligations or other adverse economic events;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• other periods of economic slowdown or recession, rising interest rates or declining demand for real estate, or the public perception that any of these events may occur;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tenant turnover, the attractiveness of our properties to potential tenants and changes in supply of, or demand for, similar or competing properties in an area (including from general overbuilding or excess supply in the market);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• technological changes, such as reconfiguration of supply chains, autonomous vehicles, drones, robotics, 3D printing, online marketplaces for industrial space, or other developments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to control rental rates and changes in operating costs and expenses, including costs of compliance with tax, real estate, environmental and zoning laws, rules and regulations and our potential liability thereunder;

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• periods of high interest rates and tight money supply;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• future terrorist attacks, which may result in declining economic activity, which could reduce the demand for, and the value of, our properties, and may adversely affect our tenants' business and their ability to continue to honor their existing lease; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• disruptions in the global supply chain caused by political, regulatory or other factors, including geopolitical developments outside the United States.

In addition, our investments could be materially adversely affected by changes in national and international political, environmental and socioeconomic circumstances, such as the conflict between Russia and Ukraine and its impact on macroeconomic conditions. Coupled with changes in Federal Reserve policies on interest rates and other economic disruptions, this war has, and may continue to, exacerbate inflation and adversely affect economic and market conditions, the level and volatility of real estate and securities prices and the liquidity of our investments. As military conflicts and related economic sanctions continue to evolve, it has become increasingly difficult to predict the impact of these events.

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***Real estate investments are not as liquid as other types of investments.***

The lack of liquidity in real estate investments may limit our ability to vary our portfolio and react promptly to changes in economic or other conditions. In addition, significant expenditures associated with real estate investments, such as mortgage payments, real estate taxes and maintenance costs, are generally not reduced when circumstances cause a reduction in income from the investments. We intend to comply with the safe harbor rules relating to the number of properties that can be sold each year, the tax basis and the costs of improvements made to such sale properties, and other items that enable a REIT to avoid punitive taxation on property sales. Thus, our ability at any time to sell properties or contribute properties to real estate funds or other entities in which we have an ownership interest may be restricted.

***Uninsured losses may adversely affect your returns.***

There are certain losses, including losses from floods, earthquakes, acts of war, acts of terrorism or riots, that are not generally insured against or that are not generally fully insured against because it is not deemed economically feasible or prudent to do so. In addition, changes in the cost or availability of insurance could expose us to uninsured casualty losses. In the event that any of our properties incurs a casualty loss that is not fully covered by insurance, the value of our assets will be reduced by the amount of any such uninsured loss, we could experience a significant loss of invested capital and potential revenue in the property, we could remain obligated under any recourse debt associated with the property, and we may have no source of funding to repair or reconstruct the damaged property. Moreover, we may be liable for our Operating Partnership's unsatisfied recourse obligations, including any obligations incurred by our Operating Partnership as the general partner of joint ventures.

***Environmentally hazardous conditions may adversely affect our operating results.***

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

Some of our properties contain asbestos-containing building materials. Environmental laws require owners of buildings containing asbestos properly manage and maintain the asbestos, adequately inform or train those who may come into contact with asbestos and undertake special precautions in the event that asbestos is disturbed during building renovation or demolition. These laws may impose fines and penalties on owners who fail to comply with these requirements and may allow third parties to seek recovery from owners for personal injury associated with exposure to asbestos. In addition, some of our properties contain, or may have contained, or are adjacent to or near other properties that have contained or currently contain, underground storage tanks used to store petroleum products and other hazardous or toxic substances, which create a potential for the release of petroleum products or other hazardous or toxic substances. We also own properties that are on or are adjacent to or near other properties upon which other persons, including former owners or tenants of our properties, have engaged, or may in the future engage, in activities that may release petroleum products or other hazardous or toxic substances.

Before acquiring a property, we typically obtain a preliminary assessment of environmental conditions at the property, often referred to as "Phase I environmental site assessment." However, this environmental assessment does not include soil sampling or subsurface investigations and typically does not include an asbestos survey. We may acquire properties with known adverse environmental conditions and/or material environmental conditions, liabilities or compliance concerns may arise after the environmental assessment has been completed. Further, in connection with property dispositions, we may agree to remain responsible for, and to bear the cost of, remediating or monitoring certain environmental conditions on the properties. Moreover, there can be no assurance that future laws, ordinances or regulations will not impose any material environmental

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liability, or the current environmental condition of our properties will not be affected by tenants, by the condition of land or operations in the vicinity of our properties (such as releases from underground storage tanks), or by third parties unrelated to us.

***We are exposed to the potential impacts of future climate change and climate change-related risks.***

Our properties may be exposed to rare catastrophic weather events, such as severe storms, floods or wildfires. If the frequency of extreme weather events increases due to climate change, our exposure to these events could increase. In addition, in connection with any development, redevelopment or renovation project, we may be harmed by potential changes to the supply chain or stricter energy efficiency standards for industrial buildings. To the extent climate change causes shifts in weather patterns, our markets could experience negative consequences, including declining demand for industrial space and our inability to operate our buildings. Climate change may also have indirect negative effects on our business by increasing the cost of, or decreasing the availability of, property insurance on terms we find acceptable and increasing the cost of energy, building materials and snow removal at our properties. In addition, compliance with new laws or regulations relating to climate change, including "green" building codes, may require us to make improvements to our existing properties or result in increased operating costs. Any such laws or regulations could also impose substantial costs on our tenants, thereby impacting their financial condition and ability to meet their obligations and to lease or re-lease our properties.

***Compliance or failure to comply with the ADA and other regulations could result in substantial costs.***

Under the ADA, places of public accommodation must meet certain federal requirements related to access and use by disabled persons. Noncompliance with these requirements could result in additional costs to attain compliance, the imposition of fines by the federal government or the award of damages or attorney's fees to private litigants. If we are required to make unanticipated expenditures to comply with the ADA or other regulations, including removing access barriers, then our cash flows and cash available for distribution may be adversely affected. In addition, changes to the requirements set forth in the ADA or other regulations or the adoption of new requirements could require us to make significant unanticipated expenditures.

***The ownership of properties subject to ground leases exposes us to certain risks.***

We currently own and may acquire additional properties subject to ground leases, or leasehold interests in the land underlying the building. As lessee under a ground lease, we are exposed to the possibility of losing the property upon expiration, or an earlier breach by us, of the ground lease. Our ground leases may also contain provisions that limit our ability to sell the property or require us to obtain the consent of the landlord in order to assign or transfer our rights and obligations under the ground lease in connection with a sale of the property, which could adversely impact the price realized from any such sale. We also own properties that benefit from payment in lieu of tax ("PILOT") programs or similar programs through leasehold interests with the relevant municipality serving as lessor. While we have the right to purchase the fee interests in these properties for a nominal purchase price, in the event of such a conversion, any preferential tax treatment offered by the PILOT programs will be lost.

***We may be unable to sell properties, including as a result of uncertain market conditions.***

We expect to hold our properties until a sale or other disposition is appropriate given our investment objectives. Our ability to dispose of any property on advantageous terms depends on factors beyond our control, including competition from other sellers and the availability of attractive financing for potential buyers. Due to the uncertainty of market conditions that may affect future property dispositions, we cannot assure you that we will be able to sell our properties at a profit. Accordingly, the extent to which you will receive cash distributions and realize potential appreciation on our investments will be dependent upon fluctuating market conditions. Furthermore, we cannot assure you that we will have the funds that may be required to correct defects or to make improvements before a property can be sold.

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

Under certain circumstances, we may sell properties by providing financing to purchasers. If we provide financing to purchasers, we will bear the risk that the purchaser may default, which could adversely affect our cash flows and ability to make distributions to stockholders and may result in litigation and increased expenses. Even in the absence of a purchaser default, the reinvestment or distribution of the sales proceeds will be delayed until the promissory notes (or other property we may accept upon a sale) are actually paid, sold or refinanced.

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***Joint venture investments could be adversely affected by our lack of sole decision-making authority, our reliance on co-venturers' financial condition and disputes between us and our co-venturers.***

We may in the future selectively acquire, own and/or develop properties through partnerships, joint ventures or other co-investment entities with third parties when we deem such transactions are warranted by the circumstances. In such event, we would not be in a position to exercise sole decision-making authority regarding the property, partnership, joint venture or other entity and would be subject to risks not present were a third party not involved, including the possibility that partners might become bankrupt or fail to fund required capital contributions. Partners may have economic or other business interests that are inconsistent with our objectives, take actions contrary to our policies, or have other conflicts of interest. Such investments may also have the potential risk of impasses on decisions, such as a sale, because neither we nor the partner would have full control over the partnership or joint venture. In addition, prior consent of the partner may be required for a sale or transfer to a third party of our interests in the joint venture, which would restrict our ability to dispose of our interest. In addition, in certain circumstances, we may be liable for the actions of our third-party partners. Joint ventures may be subject to debt and, in volatile credit markets, the refinancing of such debt may require equity capital calls.

**Risks Related to Our Debt Financings**

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

Our charter and bylaws do not limit the amount of indebtedness we may incur, and we are subject to risks normally associated with debt financing, including the risk that our cash flows will be insufficient to meet required payments of principal and interest. There can be no assurance that we will be able to refinance any maturing indebtedness, that such refinancing would be on terms as favorable as the terms of the maturing indebtedness or that we will be able to otherwise obtain funds by selling assets or raising equity to make required payments on maturing indebtedness. In particular, loans obtained to fund property acquisitions may be secured by first mortgages on such properties. If we are unable to make our debt service payments as required, a lender could foreclose on the properties securing its debt, which would cause us to lose part or all of our investment. Certain of our existing secured indebtedness is, and future secured indebtedness may be, cross-collateralized and, consequently, a default on this indebtedness could cause us to lose part or all of our investment in multiple properties.

***Increases in interest rates could increase our required debt payments and adversely affect our ability to make distributions to stockholders.***

As of December 31, 2022, we had total outstanding debt of approximately $2.5 billion, including approximately $175.0 million of debt subject to variable interest rates (excluding amounts that were hedged to fix rates), and we expect that we will incur additional indebtedness in the future. Interest we pay on outstanding debt reduces our cash available for distribution. Since we have incurred and may continue to incur variable rate debt, increases in interest rates by the Federal Reserve or changes in the Term Secured Overnight Financing Rate ("Term SOFR") would raise our interest costs, which reduces our cash flows and our ability to make distributions. If we are unable to refinance our indebtedness at maturity or meet our payment obligations, our financial condition and cash flows would be adversely affected, and we may lose the properties securing such indebtedness. In addition, if we need to repay existing debt during periods of rising interest rates, we could be required to sell one or more of our properties at times which may not permit realization of the maximum return on such investments.

***The phase-out of LIBOR and transition to Term SOFR as a benchmark interest rate will have uncertain and possibly adverse effects.***

In advance of the cessation of LIBOR on June 30, 2023, we amended our unsecured credit facility and term loans to be based on one-month Term SOFR, and as of December 31, 2022, we had no LIBOR-based debt or financial contracts. Due to the broad use of LIBOR as a reference rate, the impact of this transition to Term SOFR could adversely affect our financing costs, including spread pricing on our unsecured credit facility, unsecured term loans and any other variable rate debt obligations, as well as our operations and cash flows. There is no guarantee that the transition from LIBOR to Term SOFR will not result in financial market disruptions, significant increases in benchmark rates, or borrowing costs to borrowers, any of which could affect our interest expense and earnings and may have an adverse effect on our business, results of operations, financial condition, and stock price. Whether or not Term SOFR attains market acceptance as a LIBOR replacement tool remains uncertain.

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***Our loan covenants could limit our flexibility and adversely affect our financial condition and ability to make distributions.***

Our existing mortgage notes and unsecured loan agreements require us to comply with certain financial and other covenants, including loan-to-value, debt service coverage, leverage and fixed charge coverage ratios and, in the case of an event of default, limitations on distributions. In addition, our existing unsecured loan agreements contain, and future agreements may contain, cross-default provisions which are triggered in the event that other material indebtedness is in default. These cross-default provisions may require us to repay or restructure the facilities in addition to any other debt that is in default. Future indebtedness may contain financial or other covenants more restrictive than those in our existing loan agreements.

We are a holding company and conduct substantially all of our business through our Operating Partnership. As a result, we rely on distributions from our Operating Partnership to pay dividends and meet our debt service and other obligations. The ability of our Operating Partnership to make distributions to us depends on the operating results of our Operating Partnership and the terms of any loans that encumber our properties. Such loans may contain lock box arrangements, reserve requirements, financial covenants, and other provisions that restrict the distribution of funds in the event of a default.

***If debt is unavailable at reasonable rates, we may not be able to finance acquisitions or refinance our existing debt.***

If debt is unavailable at reasonable rates, we may not be able to finance acquisitions or refinance existing debt when the loans come due on favorable terms, or at all. Most of our financing arrangements require us to make a lump-sum or "balloon" payment at maturity. Our ability to make a payment at maturity is uncertain and, in the event that we do not have sufficient funds, we will need to refinance this debt. If interest rates are higher when we refinance such debt, our net income, cash flow, and, consequently, our cash available for distribution to stockholders could be reduced. If the credit environment is constrained at the time a payment is due, we may not be able to refinance the existing debt on acceptable terms and may be forced to choose from a number of unfavorable options, including accepting unfavorable financing terms, selling properties on disadvantageous terms or defaulting and permitting the lender to foreclose.

***Our hedging strategies may not be successful in mitigating our risks associated with interest rates.***

Our various derivative financial instruments involve certain risks, such as the risk that the counterparties fail to honor their obligations, that these arrangements may not be effective in reducing our exposure to interest rate changes, and that a court rules that such agreements are not legally enforceable. In addition, the nature, timing and costs of hedging transactions may influence the effectiveness of our hedging strategies. Poorly designed strategies or improperly executed transactions could actually increase our risk and losses. We cannot assure you that our hedging strategies and derivative financial instruments will adequately offset the risk of interest rate volatility or that such instruments will not result in losses that may adversely impact our financial condition.

***Adverse changes in our credit ratings could negatively affect our financing activity.***

The credit ratings of our unsecured debt are based on our operating performance, liquidity and leverage ratios, overall financial position and other factors employed by the credit rating agencies. Our credit ratings can affect the amount of capital we can access, as well as the terms and pricing of our debt. There can be no assurance that we will be able to maintain our current credit ratings, and in the event our credit ratings are downgraded, we would incur greater borrowing costs and may encounter difficulty in obtaining additional financing. Also, a downgrade in our credit ratings may trigger additional payments or other negative consequences under our unsecured credit facility and other debt instruments. Adverse changes in our credit ratings could harm our capital market activities, ability to manage debt maturities, future growth and acquisition activity.

**U.S. Federal Income Tax Risks**

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

Our qualification as a REIT will depend upon our ability to meet requirements regarding our organization and ownership, distributions of our income, the nature and diversification of our income and assets and other tests imposed by the Code. If we fail to qualify as a REIT for any taxable year after electing REIT status, we will be subject to federal income tax on our taxable income at regular corporate rates. In addition, we would generally be disqualified from treatment as a REIT for the four taxable years following the year in which we failed to qualify as a REIT. Losing our REIT status would reduce our net earnings available for investment or distribution to stockholders because of the additional tax liability. In addition, dividends to stockholders would no longer qualify for the dividends-paid deduction and we would no longer be required to make

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distributions. If this occurs, we might be required to borrow funds or liquidate some investments in order to pay the applicable tax.

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

Even if we maintain our qualification as a REIT for federal income tax purposes, we may be subject to some federal, state and local taxes.

For example, (i) we will be subject to federal corporate income tax on the undistributed income to the extent that we satisfy the REIT distribution requirements but distribute less than 100% of our REIT taxable income, (ii) we will be subject to a 4% nondeductible excise tax on the amount, if any, by which distributions we pay in any calendar year are less than the sum of 85% of our ordinary income, 95% of our capital gain net income and 100% of our undistributed income from prior years, (iii) we will be subject to the highest corporate income tax rate if we have net income from the sale of foreclosure property that we hold primarily for sale to customers in the ordinary course of business or other non-qualifying income from foreclosure property, (iv) we will be subject to a 100% "prohibited transaction" tax on our gain from an asset sale, other than foreclosure property, that we hold primarily for sale to customers in the ordinary course of business, unless such sale were made by our taxable REIT subsidiary ("TRS") or if we qualify for a safe harbor; and (v) our TRS will be subject to federal, state and local income tax at regular corporate rates on any income that it earns.

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

From time to time, we may generate taxable income greater than our income for financial reporting purposes, or our taxable income may be greater than our cash available for distribution to stockholders. If we do not have other funds available in these situations, we could be required to borrow or raise equity on unfavorable terms, sell investments at disadvantageous prices, make taxable distributions of our stock or debt securities or find another alternative source of funds to distribute enough of our taxable income to satisfy the REIT distribution requirement and to avoid corporate income tax and the 4% excise tax in a particular year. These alternatives could increase our costs or reduce the value of our equity. In addition, to maintain our qualification as a REIT, we must satisfy certain tests on an ongoing basis concerning, among other things, the sources of our income, nature of our assets and the amounts we distribute to our stockholders. We may be required to make distributions to stockholders at times when it would be more advantageous to reinvest cash in our business or when we do not have funds readily available for distribution. Thus, compliance with the REIT requirements may hinder our ability to operate solely on the basis of maximizing profits and the value of our stockholders' investment.

***Re-characterization of sale-leaseback transactions may cause us to lose our REIT status.***

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

***The prohibited transactions tax may limit our ability to engage in certain transactions.***

A REIT's net income from prohibited transactions is subject to a 100% tax. In general, prohibited transactions are dispositions of property, other than foreclosure property, held primarily for sale to customers in the ordinary course of business. Although a safe harbor to the characterization of a disposition as a prohibited transaction is available, we cannot assure you that we can comply with the safe harbor or that we will avoid owning property that may be characterized as held primarily for sale to customers in the ordinary course of business. Consequently, we may choose not to engage in certain dispositions or may conduct such dispositions through a TRS.

***We may be subject to adverse legislative or regulatory tax changes.***

Federal income taxation rules are constantly under review by the IRS, the U.S. Department of the Treasury and persons involved in the legislative process. Changes to tax laws, with or without retroactive application, through new legislation,

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Treasury Regulations, administrative interpretations or court decisions could adversely affect us or our stockholders, including by negatively affecting our ability to qualify as a REIT or the federal income tax consequences of such qualification, or reducing the relative attractiveness of an investment in a REIT compared to a corporation not qualified as a REIT. We cannot predict the long-term effect of future law changes on us or our stockholders.

**Other General Risks**

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

We face risks associated with security breaches, cyber-attacks, and other significant disruptions of our IT networks and related systems. The risk of a security breach, cyber-attack or disruption has increased as the number, intensity and sophistication of attempted attacks from around the world have increased. There can be no assurance that our security measures taken to manage the risk of a security breach, cyber-attack or disruption will be effective or that attempted security breaches, cyber-attacks or disruptions would not be successful or damaging. Any failure of our IT networks and related systems could (i) disrupt the proper functioning of our networks and systems, (ii) result in misstated financial reports, violations of loan covenants or missed reporting deadlines, (iii) disrupt our inability to monitor our compliance with REIT requirements, (iv) result in the unauthorized access to, and destruction, loss, theft, misappropriation or release of proprietary, confidential, sensitive or otherwise valuable information, (v) require significant management attention and resources to remedy any damages that result, (vi) subject us to claims for breach of contract or failure to safeguard personal information or termination of leases or other agreements, or (vii) damage our reputation among our tenants and investors generally.

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

Our success depends to a significant degree upon the continued contributions of certain key personnel including, but not limited to, our executive officers, whose continued service is not guaranteed, and each of whom would be difficult to replace. Our ability to retain our management team or to attract suitable replacements should any members of the management team leave is dependent on the competitive nature of the employment market. Each executive officer may terminate his employment at any time and, under certain conditions, may receive cash severance, immediate vesting of equity awards and other benefits and may not be restricted from competing with us after their departure. The loss of services from key members of the management team or a limitation in their availability could be negatively perceived in the capital markets and may adversely impact our operating results, financial condition and cash flows. As of December 31, 2022, we have not obtained and do not expect to obtain key man life insurance on any of our key personnel. We also believe that, as we expand, our future success will depend upon our ability to hire and retain highly skilled managerial, investment, financing, operational, and marketing personnel. Competition for such personnel is intense, and we cannot assure you that we will be successful in attracting and retaining such skilled personnel.

***An increased focus on metrics and reporting related to corporate responsibility, specifically related to ESG factors, may impose additional costs and expose us to new risks.***

Investors and other stakeholders are focused on a variety of ESG matters and refer to rating systems developed by third party groups to compare companies. We do not participate, or may not score well, in some of these rating systems. Further, the criteria used in these rating systems change frequently, and our scores may drop as the criteria changes. We supplement our participation in these ratings systems with public disclosures regarding our ESG activities, but investors and other stakeholders may look for specific disclosures that we do not provide. Our failure to engage in certain ESG initiatives, to provide certain ESG disclosures or to participate, or score well, in certain ratings systems could result in reputational harm and could cause certain investors to be unwilling to invest in our stock, which could impair our ability to raise capital.

***Our compensation plans may not be tied to or correspond with our improved financial results or the market prices for our securities, which may adversely affect us.***

The compensation committee of our board of directors is responsible for overseeing our executive compensation plans. The compensation committee has significant discretion in structuring these compensation packages and may make compensation decisions based on any number of factors. As a result, compensation awards may not be tied to or correspond with improved financial results at the Company or the market prices for our securities.

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**Item 1B. Unresolved Staff Comments**

None.

**Item 2. Properties**

As of December 31, 2022, we owned the properties in the following table.

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| | | | | |
|:---|:---|:---|:---|:---|
| **State** | **City** | **Number of Buildings** | **Asset Type** | **Total Rentable Square Feet** |
| **Alabama** | Birmingham | 4 | Warehouse / Distribution | 362916 |
|  | Montgomery | 1 | Warehouse / Distribution | 332000 |
|  | Moody | 1 | Warehouse / Distribution | 595346 |
|  | Phenix City | 1 | Warehouse / Distribution | 117568 |
| **Arkansas** | Bryant | 1 | Warehouse / Distribution | 300160 |
|  | Rogers | 1 | Warehouse / Distribution | 400000 |
| **Arizona** | Avondale | 1 | Warehouse / Distribution | 186643 |
|  | Chandler | 1 | Light Manufacturing | 104352 |
|  | Gilbert | 1 | Warehouse / Distribution | 41504 |
|  | Mesa | 1 | Light Manufacturing | 71030 |
|  | Tucson | 1 | Warehouse / Distribution | 129047 |
| **California** | Fresno | 1 | Warehouse / Distribution | 232072 |
|  | Hollister | 1 | Warehouse / Distribution | 175325 |
|  | Lodi | 1 | Warehouse / Distribution | 400340 |
|  | McClellan | 1 | Warehouse / Distribution | 160534 |
|  | Morgan Hill | 2 | Light Manufacturing | 107126 |
|  | Rancho Cordova | 2 | Warehouse / Distribution | 106718 |
|  | Roseville | 1 | Warehouse / Distribution | 114597 |
|  | Sacramento | 6 | Warehouse / Distribution | 749709 |
|  | Sacramento | 1 | Light Manufacturing | 130000 |
|  | San Diego | 1 | Warehouse / Distribution | 205440 |
|  | Stockton | 3 | Warehouse / Distribution | 263716 |
| **Colorado** | Grand Junction | 1 | Warehouse / Distribution | 82800 |
|  | Johnstown | 1 | Warehouse / Distribution | 132194 |
|  | Longmont | 1 | Light Manufacturing | 64750 |
|  | Loveland | 2 | Warehouse / Distribution | 195674 |
| **Connecticut** | Avon | 1 | Light Manufacturing | 78400 |
|  | East Windsor | 2 | Warehouse / Distribution | 271111 |
|  | Milford | 2 | Warehouse / Distribution | 367700 |
|  | North Haven | 3 | Warehouse / Distribution | 824727 |
|  | Wallingford | 1 | Warehouse / Distribution | 105000 |
| **Delaware** | New Castle | 1 | Warehouse / Distribution | 485987 |
| **Florida** | Daytona Beach | 1 | Light Manufacturing | 142857 |
|  | Fort Myers | 1 | Warehouse / Distribution | 260620 |
|  | Jacksonville | 5 | Warehouse / Distribution | 1256750 |
|  | Lake Worth | 2 | Warehouse / Distribution | 157758 |
|  | Lake Worth | 1 | Light Manufacturing | 42158 |
|  | Lakeland | 1 | Warehouse / Distribution | 215280 |
|  | Ocala | 1 | Warehouse / Distribution | 619466 |
|  | Orlando | 1 | Warehouse / Distribution | 155000 |
|  | Orlando | 1 | Light Manufacturing | 215900 |
|  | Tampa | 1 | Warehouse / Distribution | 78560 |
|  | West Palm Beach | 1 | Light Manufacturing | 112353 |
| **Georgia** | Atlanta | 1 | Warehouse / Distribution | 159048 |
|  | Augusta | 1 | Warehouse / Distribution | 203726 |
|  | Buford | 1 | Warehouse / Distribution | 103720 |

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| | | | | |
|:---|:---|:---|:---|:---|
| **State** | **City** | **Number of Buildings** | **Asset Type** | **Total Rentable Square Feet** |
|  | Calhoun | 1 | Warehouse / Distribution | 151200 |
|  | Dallas | 1 | Warehouse / Distribution | 92807 |
|  | Forest Park | 1 | Warehouse / Distribution | 373900 |
|  | Lithonia | 1 | Warehouse / Distribution | 210858 |
|  | Norcross | 1 | Warehouse / Distribution | 152036 |
|  | Savannah | 1 | Warehouse / Distribution | 504300 |
|  | Shannon | 1 | Warehouse / Distribution | 568516 |
|  | Smyrna | 1 | Warehouse / Distribution | 102000 |
|  | Statham | 1 | Warehouse / Distribution | 225692 |
|  | Stone Mountain | 1 | Warehouse / Distribution | 78000 |
| **Iowa** | Ankeny | 2 | Warehouse / Distribution | 400968 |
|  | Council Bluffs | 1 | Warehouse / Distribution | 90000 |
|  | Des Moines | 2 | Warehouse / Distribution | 301381 |
|  | Marion | 1 | Warehouse / Distribution | 95500 |
| **Idaho** | Idaho Falls | 1 | Warehouse / Distribution | 78690 |
| **Illinois** | Bartlett | 1 | Warehouse / Distribution | 207575 |
|  | Batavia | 2 | Warehouse / Distribution | 204642 |
|  | Batavia | 1 | Light Manufacturing | 56676 |
|  | Belvidere | 7 | Warehouse / Distribution | 1169222 |
|  | Cary | 1 | Warehouse / Distribution | 79049 |
|  | Crystal Lake | 4 | Warehouse / Distribution | 506096 |
|  | DeKalb | 1 | Warehouse / Distribution | 146740 |
|  | Elgin | 2 | Warehouse / Distribution | 383856 |
|  | Elgin | 1 | Light Manufacturing | 41007 |
|  | Elmhurst | 1 | Warehouse / Distribution | 72499 |
|  | Gurnee | 1 | Warehouse / Distribution | 338740 |
|  | Harvard | 1 | Light Manufacturing | 126304 |
|  | Hodgkins | 2 | Warehouse / Distribution | 518109 |
|  | Itasca | 3 | Warehouse / Distribution | 311355 |
|  | Lisle | 1 | Light Manufacturing | 105925 |
|  | Machesney Park | 1 | Warehouse / Distribution | 80000 |
|  | McHenry | 2 | Warehouse / Distribution | 169311 |
|  | Montgomery | 1 | Warehouse / Distribution | 584301 |
|  | Saint Charles | 2 | Light Manufacturing | 217491 |
|  | Sauk Village | 1 | Warehouse / Distribution | 375785 |
|  | Schaumburg | 1 | Warehouse / Distribution | 67817 |
|  | Vernon Hills | 1 | Warehouse / Distribution | 95486 |
|  | Waukegan | 1 | Warehouse / Distribution | 131252 |
|  | West Chicago | 1 | Warehouse / Distribution | 249470 |
|  | West Chicago | 5 | Light Manufacturing | 305874 |
|  | West Dundee | 1 | Warehouse / Distribution | 154475 |
|  | Wood Dale | 1 | Light Manufacturing | 137607 |
|  | Woodstock | 1 | Light Manufacturing | 129803 |
| **Indiana** | Albion | 2 | Light Manufacturing | 96778 |
|  | Elkhart | 2 | Warehouse / Distribution | 170100 |
|  | Fort Wayne | 1 | Warehouse / Distribution | 108800 |
|  | Goshen | 1 | Warehouse / Distribution | 366000 |
|  | Greenwood | 1 | Warehouse / Distribution | 154440 |
|  | Indianapolis | 1 | Warehouse / Distribution | 78600 |
|  | Jeffersonville | 1 | Warehouse / Distribution | 563032 |
|  | Lafayette | 3 | Warehouse / Distribution | 466400 |
|  | Lebanon | 3 | Warehouse / Distribution | 2230323 |
|  | Marion | 1 | Warehouse / Distribution | 249920 |
|  | Portage | 2 | Warehouse / Distribution | 786249 |
|  | South Bend | 1 | Warehouse / Distribution | 225000 |
|  | Yoder | 1 | Warehouse / Distribution | 764177 |

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| | | | | |
|:---|:---|:---|:---|:---|
| **State** | **City** | **Number of Buildings** | **Asset Type** | **Total Rentable Square Feet** |
| **Kansas** | Edwardsville | 1 | Warehouse / Distribution | 270869 |
|  | Lenexa | 3 | Warehouse / Distribution | 581059 |
|  | Olathe | 2 | Warehouse / Distribution | 725839 |
|  | Wichita | 3 | Warehouse / Distribution | 248550 |
| **Kentucky** | Bardstown | 1 | Warehouse / Distribution | 102318 |
|  | Danville | 1 | Warehouse / Distribution | 757047 |
|  | Erlanger | 1 | Warehouse / Distribution | 108620 |
|  | Florence | 2 | Warehouse / Distribution | 641136 |
|  | Hebron | 1 | Warehouse / Distribution | 109000 |
|  | Louisville | 2 | Warehouse / Distribution | 499217 |
| **Louisiana** | Baton Rouge | 3 | Warehouse / Distribution | 532036 |
|  | Shreveport | 1 | Warehouse / Distribution | 420259 |
| **Massachusetts** | Chicopee | 1 | Warehouse / Distribution | 217000 |
|  | Hudson | 1 | Light Manufacturing | 128000 |
|  | Malden | 2 | Light Manufacturing | 109943 |
|  | Middleborough | 1 | Light Manufacturing | 80100 |
|  | Norton | 1 | Warehouse / Distribution | 200000 |
|  | South Easton | 1 | Light Manufacturing | 86000 |
|  | Sterling | 1 | Warehouse / Distribution | 119056 |
|  | Stoughton | 2 | Warehouse / Distribution | 258213 |
|  | Westborough | 1 | Warehouse / Distribution | 121700 |
| **Maryland** | Elkridge | 1 | Warehouse / Distribution | 167223 |
|  | Hagerstown | 3 | Warehouse / Distribution | 1424620 |
|  | Hampstead | 1 | Warehouse / Distribution | 1035249 |
|  | Hunt Valley | 1 | Warehouse / Distribution | 46851 |
|  | White Marsh | 1 | Warehouse / Distribution | 103564 |
| **Maine** | Biddeford | 2 | Warehouse / Distribution | 265126 |
|  | Gardiner | 1 | Warehouse / Distribution | 265000 |
|  | Lewiston | 1 | Flex Office | 60000 |
|  | Portland | 1 | Warehouse / Distribution | 100600 |
| **Michigan** | Belleville | 1 | Light Manufacturing | 160464 |
|  | Canton | 1 | Warehouse / Distribution | 491049 |
|  | Chesterfield | 4 | Warehouse / Distribution | 478803 |
|  | Grand Rapids | 4 | Warehouse / Distribution | 656262 |
|  | Holland | 1 | Warehouse / Distribution | 195000 |
|  | Kentwood | 2 | Warehouse / Distribution | 370020 |
|  | Kentwood | 1 | Light Manufacturing | 85157 |
|  | Lansing | 4 | Warehouse / Distribution | 770425 |
|  | Livonia | 2 | Warehouse / Distribution | 285306 |
|  | Marshall | 1 | Light Manufacturing | 57025 |
|  | Novi | 3 | Warehouse / Distribution | 685010 |
|  | Plymouth | 1 | Warehouse / Distribution | 125214 |
|  | Redford | 1 | Warehouse / Distribution | 138912 |
|  | Romulus | 1 | Warehouse / Distribution | 303760 |
|  | Romulus | 1 | Light Manufacturing | 274500 |
|  | Sterling Heights | 1 | Warehouse / Distribution | 108000 |
|  | Walker | 1 | Warehouse / Distribution | 210000 |
|  | Warren | 4 | Warehouse / Distribution | 981540 |
|  | Wixom | 1 | Warehouse / Distribution | 126720 |
|  | Zeeland | 1 | Warehouse / Distribution | 230200 |
| **Minnesota** | Blaine | 1 | Warehouse / Distribution | 248816 |
|  | Bloomington | 1 | Light Manufacturing | 145351 |
|  | Brooklyn Park | 1 | Warehouse / Distribution | 200720 |
|  | Carlos | 1 | Light Manufacturing | 196270 |

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| | | | | |
|:---|:---|:---|:---|:---|
| **State** | **City** | **Number of Buildings** | **Asset Type** | **Total Rentable Square Feet** |
|  | Eagan | 1 | Warehouse / Distribution | 276550 |
|  | Inver Grove Heigh | 1 | Warehouse / Distribution | 80655 |
|  | Maple Grove | 2 | Warehouse / Distribution | 207875 |
|  | Mendota Heights | 1 | Warehouse / Distribution | 87183 |
|  | New Hope | 1 | Light Manufacturing | 107348 |
|  | Newport | 1 | Warehouse / Distribution | 83000 |
|  | Oakdale | 2 | Warehouse / Distribution | 210044 |
|  | Plymouth | 3 | Warehouse / Distribution | 357085 |
|  | Savage | 1 | Warehouse / Distribution | 244050 |
|  | Shakopee | 1 | Warehouse / Distribution | 160000 |
|  | Shakopee | 1 | Light Manufacturing | 136589 |
|  | South Saint Paul | 1 | Warehouse / Distribution | 422727 |
|  | St. Paul | 1 | Warehouse / Distribution | 316636 |
| **Missouri** | Berkeley | 1 | Warehouse / Distribution | 121223 |
|  | Earth City | 1 | Warehouse / Distribution | 116783 |
|  | Fenton | 1 | Warehouse / Distribution | 127464 |
|  | Hazelwood | 1 | Warehouse / Distribution | 305550 |
|  | Kansas City | 1 | Warehouse / Distribution | 702000 |
|  | O'Fallon | 2 | Warehouse / Distribution | 186854 |
| **Mississippi** | Southaven | 1 | Warehouse / Distribution | 556600 |
| **North Carolina** | Catawba | 1 | Warehouse / Distribution | 137785 |
|  | Charlotte | 3 | Warehouse / Distribution | 243880 |
|  | Durham | 1 | Warehouse / Distribution | 80600 |
|  | Garner | 1 | Warehouse / Distribution | 150000 |
|  | Greensboro | 1 | Warehouse / Distribution | 128287 |
|  | Huntersville | 1 | Warehouse / Distribution | 185570 |
|  | Lexington | 1 | Warehouse / Distribution | 201800 |
|  | Mebane | 2 | Warehouse / Distribution | 606840 |
|  | Mebane | 1 | Light Manufacturing | 202691 |
|  | Mocksville | 1 | Warehouse / Distribution | 129600 |
|  | Mooresville | 2 | Warehouse / Distribution | 799200 |
|  | Mountain Home | 1 | Warehouse / Distribution | 146014 |
|  | Newton | 1 | Warehouse / Distribution | 217200 |
|  | Pineville | 1 | Light Manufacturing | 75400 |
|  | Rural Hall | 1 | Warehouse / Distribution | 250000 |
|  | Salisbury | 1 | Warehouse / Distribution | 288000 |
|  | Smithfield | 1 | Warehouse / Distribution | 307845 |
|  | Troutman | 1 | Warehouse / Distribution | 301000 |
|  | Winston-Salem | 1 | Warehouse / Distribution | 385000 |
|  | Youngsville | 1 | Warehouse / Distribution | 365000 |
| **Nebraska** | Bellevue | 1 | Warehouse / Distribution | 370000 |
|  | La Vista | 1 | Warehouse / Distribution | 178368 |
|  | Omaha | 5 | Warehouse / Distribution | 465468 |
| **New Hampshire** | Londonderry | 1 | Warehouse / Distribution | 125060 |
|  | Nashua | 1 | Warehouse / Distribution | 337391 |
| **New Jersey** | Branchburg | 1 | Warehouse / Distribution | 113973 |
|  | Burlington | 2 | Warehouse / Distribution | 756990 |
|  | Franklin Township | 1 | Warehouse / Distribution | 183000 |
|  | Lumberton | 1 | Light Manufacturing | 120000 |
|  | Moorestown | 2 | Warehouse / Distribution | 187569 |
|  | Mt. Laurel | 1 | Warehouse / Distribution | 112294 |
|  | Pedricktown | 1 | Warehouse / Distribution | 245749 |
|  | Swedesboro | 1 | Warehouse / Distribution | 123962 |
|  | Westampton | 1 | Warehouse / Distribution | 128959 |

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| | | | | |
|:---|:---|:---|:---|:---|
| **State** | **City** | **Number of Buildings** | **Asset Type** | **Total Rentable Square Feet** |
| **New Mexico** | Santa Teresa | 1 | Warehouse / Distribution | 92325 |
| **Nevada** | Fernley | 1 | Light Manufacturing | 183435 |
|  | Las Vegas | 1 | Warehouse / Distribution | 34916 |
|  | Las Vegas | 1 | Light Manufacturing | 122472 |
|  | Paradise | 2 | Light Manufacturing | 80422 |
|  | Reno | 1 | Light Manufacturing | 87264 |
|  | Sparks | 1 | Warehouse / Distribution | 161986 |
| **New York** | Buffalo | 1 | Warehouse / Distribution | 117000 |
|  | Cheektowaga | 1 | Warehouse / Distribution | 121760 |
|  | Farmington | 1 | Warehouse / Distribution | 149657 |
|  | Gloversville | 3 | Warehouse / Distribution | 211554 |
|  | Johnstown | 2 | Warehouse / Distribution | 117102 |
|  | Johnstown | 1 | Light Manufacturing | 42325 |
|  | Rochester | 2 | Warehouse / Distribution | 252860 |
|  | Ronkonkoma | 1 | Warehouse / Distribution | 64224 |
| **Ohio** | Bedford Heights | 1 | Warehouse / Distribution | 173034 |
|  | Boardman | 1 | Warehouse / Distribution | 176930 |
|  | Canal Winchester | 2 | Warehouse / Distribution | 814265 |
|  | Columbus | 4 | Warehouse / Distribution | 1486450 |
|  | Dayton | 1 | Warehouse / Distribution | 205761 |
|  | Etna | 1 | Warehouse / Distribution | 1232149 |
|  | Fairborn | 1 | Warehouse / Distribution | 259369 |
|  | Fairfield | 2 | Warehouse / Distribution | 364948 |
|  | Gahanna | 1 | Warehouse / Distribution | 383000 |
|  | Groveport | 1 | Warehouse / Distribution | 320657 |
|  | Hilliard | 1 | Warehouse / Distribution | 237500 |
|  | Macedonia | 2 | Warehouse / Distribution | 338297 |
|  | Maple Heights | 1 | Warehouse / Distribution | 170000 |
|  | Mason | 1 | Light Manufacturing | 116200 |
|  | North Jackson | 2 | Warehouse / Distribution | 517150 |
|  | Oakwood Village | 1 | Warehouse / Distribution | 75000 |
|  | Salem | 1 | Light Manufacturing | 271000 |
|  | Seville | 1 | Warehouse / Distribution | 75000 |
|  | Streetsboro | 1 | Warehouse / Distribution | 343416 |
|  | Strongsville | 2 | Warehouse / Distribution | 341561 |
|  | Toledo | 1 | Warehouse / Distribution | 177500 |
|  | Twinsburg | 2 | Warehouse / Distribution | 426974 |
|  | West Chester | 1 | Warehouse / Distribution | 269868 |
|  | West Jefferson | 1 | Warehouse / Distribution | 857390 |
| **Oklahoma** | Oklahoma City | 2 | Warehouse / Distribution | 303740 |
|  | Tulsa | 2 | Warehouse / Distribution | 309600 |
| **Oregon** | Salem | 2 | Light Manufacturing | 155900 |
|  | Wilsonville | 1 | Warehouse / Distribution | 78000 |
| **Pennsylvania** | Allentown | 1 | Warehouse / Distribution | 292092 |
|  | Burgettstown | 1 | Warehouse / Distribution | 455000 |
|  | Charleroi | 1 | Warehouse / Distribution | 119161 |
|  | Clinton | 7 | Warehouse / Distribution | 1531972 |
|  | Croydon | 1 | Warehouse / Distribution | 101869 |
|  | Elizabethtown | 1 | Warehouse / Distribution | 206236 |
|  | Export | 1 | Warehouse / Distribution | 138270 |
|  | Hazleton | 1 | Warehouse / Distribution | 589580 |
|  | Imperial | 1 | Warehouse / Distribution | 315634 |
|  | Lancaster | 1 | Warehouse / Distribution | 240528 |
|  | Langhorne | 2 | Warehouse / Distribution | 180000 |
|  | Langhorne | 2 | Light Manufacturing | 287647 |

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| | | | | |
|:---|:---|:---|:---|:---|
| **State** | **City** | **Number of Buildings** | **Asset Type** | **Total Rentable Square Feet** |
|  | Lebanon | 1 | Warehouse / Distribution | 211358 |
|  | Mechanicsburg | 3 | Warehouse / Distribution | 747054 |
|  | Muhlenberg Township | 1 | Warehouse / Distribution | 392107 |
|  | New Galilee | 1 | Warehouse / Distribution | 410389 |
|  | New Kensington | 1 | Warehouse / Distribution | 200500 |
|  | New Kingstown | 1 | Warehouse / Distribution | 330000 |
|  | O'Hara Township | 1 | Warehouse / Distribution | 887084 |
|  | Pittston | 1 | Warehouse / Distribution | 437446 |
|  | Reading | 1 | Warehouse / Distribution | 248000 |
|  | Warrendale | 1 | Warehouse / Distribution | 179394 |
|  | York | 5 | Warehouse / Distribution | 1306834 |
| **South Carolina** | Columbia | 1 | Light Manufacturing | 185600 |
|  | Duncan | 3 | Warehouse / Distribution | 996841 |
|  | Edgefield | 1 | Light Manufacturing | 126190 |
|  | Fountain Inn | 2 | Warehouse / Distribution | 442472 |
|  | Fountain Inn | 1 | Light Manufacturing | 203888 |
|  | Gaffney | 1 | Warehouse / Distribution | 226968 |
|  | Goose Creek | 1 | Warehouse / Distribution | 500355 |
|  | Greenwood | 2 | Light Manufacturing | 175055 |
|  | Greer | 7 | Warehouse / Distribution | 877645 |
|  | Laurens | 1 | Warehouse / Distribution | 125000 |
|  | Piedmont | 7 | Warehouse / Distribution | 1387556 |
|  | Rock Hill | 3 | Warehouse / Distribution | 720120 |
|  | Simpsonville | 3 | Warehouse / Distribution | 1138494 |
|  | Spartanburg | 9 | Warehouse / Distribution | 1802623 |
|  | Summerville | 1 | Warehouse / Distribution | 88583 |
|  | West Columbia | 6 | Warehouse / Distribution | 1163822 |
|  | West Columbia | 1 | Light Manufacturing | 464206 |
| **Tennessee** | Chattanooga | 3 | Warehouse / Distribution | 646200 |
|  | Cleveland | 1 | Warehouse / Distribution | 151704 |
|  | Clinton | 1 | Warehouse / Distribution | 166000 |
|  | Jackson | 1 | Warehouse / Distribution | 216902 |
|  | Knoxville | 2 | Warehouse / Distribution | 335550 |
|  | Knoxville | 1 | Light Manufacturing | 106000 |
|  | Lebanon | 2 | Warehouse / Distribution | 407552 |
|  | Loudon | 1 | Warehouse / Distribution | 104074 |
|  | Madison | 1 | Warehouse / Distribution | 418406 |
|  | Mascot | 1 | Warehouse / Distribution | 130560 |
|  | Mascot | 1 | Light Manufacturing | 130560 |
|  | Memphis | 2 | Warehouse / Distribution | 1331075 |
|  | Murfreesboro | 2 | Warehouse / Distribution | 212312 |
|  | Nashville | 1 | Warehouse / Distribution | 154485 |
|  | Vonore | 1 | Warehouse / Distribution | 342700 |
| **Texas** | Arlington | 2 | Warehouse / Distribution | 290324 |
|  | Cedar Hill | 1 | Warehouse / Distribution | 420000 |
|  | Conroe | 1 | Warehouse / Distribution | 252662 |
|  | El Paso | 12 | Warehouse / Distribution | 2413234 |
|  | Garland | 1 | Light Manufacturing | 253900 |
|  | Grapevine | 2 | Warehouse / Distribution | 202140 |
|  | Houston | 8 | Warehouse / Distribution | 999124 |
|  | Houston | 3 | Light Manufacturing | 597935 |
|  | Humble | 1 | Warehouse / Distribution | 289200 |
|  | Katy | 2 | Warehouse / Distribution | 244903 |
|  | Laredo | 2 | Warehouse / Distribution | 462658 |
|  | McAllen | 1 | Warehouse / Distribution | 301200 |
|  | Mission | 1 | Warehouse / Distribution | 270084 |
|  | Rockwall | 1 | Warehouse / Distribution | 389546 |
|  | Stafford | 1 | Warehouse / Distribution | 68300 |

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| | | | | |
|:---|:---|:---|:---|:---|
| **State** | **City** | **Number of Buildings** | **Asset Type** | **Total Rentable Square Feet** |
|  | Waco | 1 | Warehouse / Distribution | 66400 |
| **Utah** | Provo | 1 | Warehouse / Distribution | 177071 |
| **Virginia** | Chester | 1 | Warehouse / Distribution | 100000 |
|  | Fredericksburg | 1 | Warehouse / Distribution | 140555 |
|  | Harrisonburg | 1 | Warehouse / Distribution | 357673 |
|  | Independence | 1 | Warehouse / Distribution | 120000 |
|  | N. Chesterfield | 1 | Warehouse / Distribution | 109520 |
|  | Norfolk | 1 | Warehouse / Distribution | 102512 |
|  | Richmond | 1 | Light Manufacturing | 78128 |
| **Washington** | Ridgefield | 1 | Warehouse / Distribution | 141400 |
| **Wisconsin** | Appleton | 1 | Warehouse / Distribution | 152000 |
|  | Caledonia | 1 | Light Manufacturing | 53680 |
|  | Cudahy | 1 | Warehouse / Distribution | 128000 |
|  | De Pere | 1 | Warehouse / Distribution | 200000 |
|  | DeForest | 1 | Warehouse / Distribution | 262521 |
|  | Delavan | 2 | Light Manufacturing | 146400 |
|  | East Troy | 1 | Warehouse / Distribution | 149624 |
|  | Elkhorn | 1 | Warehouse / Distribution | 111000 |
|  | Elkhorn | 1 | Light Manufacturing | 78540 |
|  | Franklin | 1 | Warehouse / Distribution | 156482 |
|  | Germantown | 4 | Warehouse / Distribution | 520163 |
|  | Hartland | 1 | Warehouse / Distribution | 121050 |
|  | Hudson | 1 | Warehouse / Distribution | 139875 |
|  | Janesville | 1 | Warehouse / Distribution | 700000 |
|  | Kenosha | 1 | Light Manufacturing | 175052 |
|  | Madison | 2 | Warehouse / Distribution | 283000 |
|  | Mayville | 1 | Light Manufacturing | 339179 |
|  | Mukwonago | 1 | Warehouse / Distribution | 157438 |
|  | Muskego | 1 | Warehouse / Distribution | 81230 |
|  | New Berlin | 3 | Warehouse / Distribution | 590663 |
|  | Oak Creek | 2 | Warehouse / Distribution | 232144 |
|  | Pewaukee | 2 | Warehouse / Distribution | 288201 |
|  | Pleasant Prairie | 1 | Warehouse / Distribution | 291599 |
|  | Pleasant Prairie | 1 | Light Manufacturing | 105637 |
|  | Sun Prairie | 1 | Warehouse / Distribution | 427000 |
|  | West Allis | 4 | Warehouse / Distribution | 243478 |
|  | Yorkville | 1 | Warehouse / Distribution | 98151 |
|  | **Total** | **562** |  | **111723436** |

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Not reflected in the table above are three buildings under development.

As of December 31, 2022, two of our 562 buildings were encumbered by mortgage indebtedness totaling approximately $8.0 million (excluding unamortized deferred financing fees, debt issuance costs, and fair market value premiums or discounts). See Note 4 in the accompanying Notes to the Consolidated Financial Statements and the accompanying Schedule III for additional information.

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***Top Markets***

The following table summarizes information about the 20 largest markets in our portfolio based on total annualized base rental revenue as of December 31, 2022.

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| | |
|:---|:---|
| **Top 20 Markets**<sup>(1)</sup> | **% of Total Annualized Base Rental Revenue** |
| Chicago, IL | 7.7% |
| Philadelphia, PA | 7.2% |
| Greenville/Spartanburg, SC | 5.5% |
| Milwaukee/Madison, WI | 4.3% |
| Detroit, MI | 4.2% |
| Pittsburgh, PA | 4.1% |
| Columbus, OH | 4.0% |
| Minneapolis/St Paul, MN | 3.7% |
| Houston, TX | 2.8% |
| Charlotte, NC | 2.5% |
| West Michigan, MI | 2.5% |
| El Paso, TX | 2.5% |
| Indianapolis, IN | 1.9% |
| Cleveland, OH | 1.9% |
| Boston, MA | 1.8% |
| Kansas City, MO | 1.7% |
| Washington, DC | 1.7% |
| Columbia, SC | 1.6% |
| Westchester/So Connecticut, CT/NY | 1.5% |
| Cincinnati/Dayton, OH | 1.5% |
| **Total** | **64.6%** |

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(1) As defined by CoStar Realty Information, Inc.

***Top Industries***

The following table summarizes information about the 20 largest tenant industries in our portfolio based on total annualized base rental revenue as of December 31, 2022.

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| | |
|:---|:---|
| **Top 20 Tenant Industries**<sup>(1)</sup> | **% of Total <br>Annualized Base Rental Revenue** |
| Air Freight & Logistics | 10.9% |
| Containers & Packaging | 8.2% |
| Auto Components | 7.3% |
| Commercial Services & Supplies | 5.4% |
| Machinery | 5.3% |
| Trading Companies & Distribution (Industrial Goods) | 5.2% |
| Internet & Direct Market Retail | 4.8% |
| Household Durables | 4.4% |
| Distributors (Consumer Goods) | 4.3% |
| Food & Staples Retailing | 3.4% |
| Media | 3.3% |
| Building Products | 3.1% |
| Specialty Retail | 2.8% |
| Food Products | 2.3% |
| Chemicals | 2.2% |
| Electronic Equip, Instruments | 2.2% |
| Road & Rail | 2.1% |
| Beverages | 2.0% |
| Textiles, Apparel, Luxury Goods | 1.9% |
| Health Care Equipment & Supplies | 1.8% |
| **Total** | **82.9%** |

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

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***Top Tenants***

The following table summarizes information about the 20 largest tenants in our portfolio based on total annualized base rental revenue as of December 31, 2022.

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| | | |
|:---|:---|:---|
| **Top 20 Tenants**<sup>(1)</sup> | **Number of <br>Leases** | **% of Total <br>Annualized Base <br>Rental Revenue** |
| Amazon | 7 | 3.0% |
| Eastern Metal Supply, Inc. | 5 | 0.9% |
| American Tire Distributors, Inc. | 7 | 0.9% |
| Tempur Sealy International, Inc. | 2 | 0.8% |
| Hachette Book Group, Inc. | 1 | 0.8% |
| Lippert Component Manufacturing | 5 | 0.8% |
| Kenco Logistic Services, LLC | 3 | 0.8% |
| FedEx Corporation | 3 | 0.8% |
| Penguin Random House, LLC | 1 | 0.7% |
| WestRock Company | 7 | 0.7% |
| DS Smith North America | 2 | 0.7% |
| GXO Logistics, Inc. | 2 | 0.7% |
| Yanfeng US Automotive Interior | 2 | 0.7% |
| DHL Supply Chain | 4 | 0.7% |
| AFL Telecommunications LLC | 2 | 0.7% |
| Carolina Beverage Group | 3 | 0.7% |
| LKQ Corporation | 4 | 0.7% |
| Berlin Packaging L.L.C. | 4 | 0.6% |
| Iron Mountain Information Management | 5 | 0.6% |
| Ford Motor Company | 1 | 0.6% |
| **Total** | **70** | **16.9%** |

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

***Scheduled Lease Expirations***

As of December 31, 2022, our Weighted Average Lease Term was approximately 4.7 years. The following table summarizes lease expirations for leases in place as of December 31, 2022, plus available space, for each of the ten calendar years beginning with 2023 and thereafter in our portfolio.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Lease Expiration Year** | **Number of <br>Leases <br>Expiring** | **Total Rentable <br>Square Feet** | **% of Total <br>Occupied <br>Square Feet** | **Total Annualized <br>Base Rental Revenue <br>(in thousands)** | **% of Total Annualized <br>Base Rental Revenue** |
| Available |  | 1667523 |  | $— |  |
| Month-to-month leases | 1 | 29892 | —% | 343 | 0.1% |
| 2023 | 71 | 8912511 | 8.1% | 41436 | 7.7% |
| 2024 | 100 | 13373950 | 12.2% | 63798 | 11.8% |
| 2025 | 102 | 14316715 | 13.0% | 65502 | 12.1% |
| 2026 | 121 | 18106957 | 16.5% | 87444 | 16.2% |
| 2027 | 95 | 14196659 | 12.9% | 71200 | 13.2% |
| 2028 | 62 | 8846726 | 8.0% | 41801 | 7.7% |
| 2029 | 47 | 7977761 | 7.3% | 39201 | 7.3% |
| 2030 | 29 | 4110740 | 3.7% | 23014 | 4.3% |
| 2031 | 41 | 7312872 | 6.6% | 35034 | 6.5% |
| 2032 | 18 | 2542575 | 2.3% | 17608 | 3.3% |
| Thereafter | 36 | 10328555 | 9.4% | 52770 | 9.8% |
| **Total/weighted average** | **723** | **111723436** | **100.0%** | $**539151** | **100.0%** |

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**Item 3. Legal Proceedings**

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

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**Item 4. Mine Safety Disclosures**

Not applicable.

**PART II.**

**Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities**

Information about our equity compensation plans and other related stockholder matters is incorporated by reference to our definitive Proxy Statement for our 2023 Annual Meeting of Stockholders.

**Market Information**

Our common stock is listed on the NYSE and is traded under the symbol "STAG."

**Holders of Our Common Stock**

As of February 13, 2023, we had 73 stockholders of record. This figure does not reflect the beneficial ownership of shares held in the nominee name.

**Dividends**

To maintain our qualification as a REIT, we must make annual distributions to our stockholders of at least 90% of our taxable net income (not including net capital gains). Dividends are declared at the discretion of our board of directors and depend on actual and anticipated cash from operations, our financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Code and other factors our board of directors may consider relevant.

**Unregistered Sales of Equity Securities and Use of Proceeds**

**Recent Sales of Unregistered Equity Securities**

During the quarter ended December 31, 2022, the Operating Partnership issued 33,494 common units upon exchange of outstanding LTIP units issued pursuant to the 2011 Plan. Subject to certain restrictions, common units 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 December 31, 2022, we issued 33,494 shares of common stock upon redemption of 33,494 common units 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 issuances of unregistered securities during the three months ended December 31, 2022, if any, have previously been disclosed in filings with the SEC.

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**Performance Graph**

The following graph provides a comparison of the cumulative total return on our common stock with the cumulative total return on the Standard & Poor's 500 Index and the MSCI US REIT Index. The MSCI US REIT Index represents performance of publicly-traded REITs. Returns over the indicated period are based on historical data and should not be considered indicative of future returns. The graph covers the period from December 31, 2017 to December 31, 2022 and assumes that $100 was invested in our common stock and in each index on December 31, 2017 and that all dividends were reinvested.

![stag-20221231_g2.jpg](stag-20221231_g2.jpg)

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

**Item 6. Reserved**

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

*The following discussion of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes included elsewhere in this report. For the definitions of certain terms used in the following discussion, refer to Item 1, "Business - Certain Definitions" included elsewhere in this report..*

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**Overview**

We are a REIT focused on the acquisition, ownership, and operation of industrial properties throughout the United States. We seek to (i) identify properties that offer relative value across all locations, industrial property types, and tenants through the principled application of our proprietary risk assessment model, (ii) operate our properties in an efficient, cost-effective manner, and (iii) capitalize our business appropriately given the characteristics of our assets. We are a Maryland corporation and our common stock is publicly traded on the NYSE under the symbol "STAG."

We are organized and conduct our operations to maintain our qualification as a REIT under Sections 856 through 860 of the Code, 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.

Our qualification and taxation as a REIT depend upon our ability to meet on a continuing basis, through actual annual operating results, qualification tests in the federal income tax laws. Those tests involve the percentage of income that we earn from specified sources, the percentage of our assets that falls within specified categories, the diversity of our capital stock ownership and the percentage of our earnings that we distribute.

On July 1, 2022, our board of directors appointed William R. Crooker to the role of Chief Executive Officer of the Company, in addition to his role as President, effective July 1, 2022. In addition, on June 29, 2022, our board of directors increased the size of the board from nine to 10 members and appointed Mr. Crooker to the board and the investment committee of the board, effective as of July 1, 2022, subject to re-election at the 2023 Annual Meeting of Stockholders. As Chief Executive Officer, Mr. Crooker leads and manages our business, executes the strategies developed by management and the board and serves as the chief spokesperson to our employees, stockholders and business counterparties. In addition, in connection with Mr. Crooker's promotion, our board of directors appointed Benjamin S. Butcher as Executive Chair of the Company. As Executive Chair, Mr. Butcher manages the business of the board, regularly consults with Mr. Crooker on key corporate matters and serves as a liaison between the board and the management team.

As of December 31, 2022, we owned 562 buildings in 41 states with approximately 111.7 million rentable square feet, consisting of 484 warehouse/distribution buildings, 74 light manufacturing buildings, one flex/office building, and three Value Add Portfolio buildings. We own both single- and multi-tenant properties, although the majority of our portfolio is single-tenant.

As of December 31, 2022, our buildings were approximately 98.5% leased, with no single tenant accounting for more than approximately 3.0% of our total annualized base rental revenue and no single industry accounting for more than approximately 10.9% of our total annualized base rental revenue.

We own all of our properties and conduct substantially all of our business through our Operating Partnership, which we control and manage. As of December 31, 2022, we owned approximately 97.9% of the common units in our Operating Partnership, and our current and former executive officers, directors, senior employees and their affiliates, and other third parties owned the remaining 2.1%.

**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.

***Outlook***

Our business is affected by the uncertainty regarding the current high inflationary, rising interest rate environment, and geopolitical tensions in Europe. These factors are key drivers of recent financial market volatility, continued supply chain bottlenecks, and growing concerns of a global recession. In the first two quarters of 2022, U.S. GDP declined 1.6% and 0.6% respectively before posting a gain of 3.5% in the third quarter of 2022. Labor conditions remained strong with a 3.7% unemployment rate as of December 2022. Going forward, the general consensus among economists is to expect an elevated risk of recession over the near term. While the macro-economic conditions continue to evolve and could result in weakening tenant cash flows and rising vacancy rates, we believe we will continue to benefit from having a well-diversified portfolio across

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various markets, tenant industries, and lease terms. Additionally, we believe that the COVID-19 pandemic and geopolitical tensions have accelerated a number of trends that positively impact U.S. industrial demand.

Over the course of the COVID-19 pandemic, the U.S. federal and state governments, as well as the Federal Reserve, responded to the profoundly uncertain outlook with a series of fiscal and monetary policies to ease the economic burden of COVID-19 closures on businesses and individuals. In 2022, given the historically high inflation levels and strong employment reports, the Federal Reserve shifted away from an expansionary monetary policy. In February 2023, the Federal Reserve raised interest rates 25 basis points to a range between 4.5% to 4.75%. Since March 2022, the Federal Reserve has raised the Fed Funds Rate by 450 basis points and started shrinking its balance sheet. The Federal Reserve indicates monetary policy will continue tightening with higher interest rates and a shrinking of Federal Reserve balance sheet until inflation measures approach its long-term target.

We believe that the current economic environment, while volatile, will provide us with an opportunity to demonstrate the diversification of our portfolio. Specifically, we believe our existing portfolio should benefit from competitive rental rates and strong occupancy. In addition, we believe that certain characteristics of our business and capital structure should position us well in an uncertain environment, including our minimal floating rate debt exposure (taking into account our hedging activities), strong liquidity, and access to capital, and the fact that many of our competitors for acquisitions tend to be smaller local and regional investors who may be more heavily impacted by rising interest rates and lack of available of capital.

Due to the COVID-19 pandemic, geopolitical uncertainty, and recent legislative bills supporting U.S. infrastructure, we expect acceleration in a number of industrial specific trends to support stronger long-term demand, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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 which is driving higher inventory to sales ratios and greater domestic warehouse demand over the long-term (i.e. the shortening and fattening of the supply chain); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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. The COVID-19 pandemic has caused both positive and negative impacts at varying levels across different industries and geographies. Ultimately, the acceleration in e-commerce, actions taken by federal and state governments and the Federal Reserve in response to the pandemic, and the growing desire for greater supply chain resilience has helped industrial space demand remain relatively strong going into 2023. The weakening global and U.S. economic trends could be a notable headwind and may result in relatively less demand for space and higher vacancy. We believe that the diversification of our portfolio by market, tenant industry, and tenant credit will prove to be a strength in this environment.

***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.

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, 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 year ended December 31, 2022. Any rental concessions in such leases are accounted for on a straight-line basis over the term of the lease.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Operating Portfolio** | **Square Feet** | **Cash Basis Rent Per Square Foot** | **SL Rent Per Square Foot** | **Total Costs Per Square Foot**<sup>(1)</sup> | **Cash Rent Change** | **SL Rent Change** | **Weighted Average Lease Term** **(years)** | **Rental Concessions per Square Foot**<sup>(2)</sup> |
| **Operating Portfolio** | **Square Feet** | **Cash Basis Rent Per Square Foot** | **SL Rent Per Square Foot** | **Total Costs Per Square Foot**<sup>(1)</sup> | **Cash Rent Change** | **SL Rent Change** | **Weighted Average Lease Term** **(years)** | **Rental Concessions per Square Foot**<sup>(2)</sup> |
| **Year ended December 31, 2022** | | | | | | | | |
| &nbsp;&nbsp;&nbsp;New Leases | 4376929 | $5.34 | $5.67 | $2.73 | 18.6% | 31.2% | 5.9 | $0.58 |
| &nbsp;&nbsp;&nbsp;Renewal Leases | 7795545 | $4.84 | $5.10 | $1.09 | 11.8% | 20.5% | 4.7 | $0.12 |
| &nbsp;&nbsp;&nbsp;**Total/weighted average** | **12172474** | $**5.02** | $**5.30** | $**1.69** | **14.3%** | **24.3%** | **5.1** | $**0.28** |

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

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

Additionally, for the year ended December 31, 2022, leases related to the Value Add Portfolio and first generation leasing, with a total of 1,069,650 square feet, 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, which may require us to absorb certain building related expenses of our tenants. In our modified gross leases, we are responsible for certain building related expenses during the lease term, but most of the expenses are passed through to the tenant for reimbursement to us. In our gross leases, we are responsible for all expenses related to the building and its operation during the lease term. Our overall performance will be affected by the extent to which we are able to pass-through property operating expenses to our tenants.

***Scheduled Lease Expirations***

Our ability to re-lease space subject to expiring leases 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 7.7% of our total annualized base rental revenue will expire during the period from January 1, 2023 to December 31, 2023, excluding month-to-month leases. We assume, based upon internal renewal probability estimates, that some of our tenants will renew and others will vacate and the associated space will be re-let subject to downtime assumptions. Using the aforementioned assumptions, we expect that the rental rates on the respective new leases will be greater than the rates under existing leases expiring during the period January 1, 2023 to December 31, 2023, thereby resulting in an increase in revenue from the same space.

**Critical Accounting Estimates**

The preparation of our consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Certain estimates, judgments and assumptions are inherently subjective and based on the existing business and market conditions, and are therefore continually evaluated based upon available information and experience. The following items require significant estimation or judgement.

***Purchase Price Accounting***

We have determined that judgments regarding the allocation of the purchase price of properties based upon the fair value of the assets acquired and liabilities assume represents a critical accounting estimate that has the potential to be material in future periods and has been material in all periods presented in this Form 10-K. As discussed below in "Critical Accounting Policies," we allocate the purchase price of properties based upon the fair value of the assets acquired and liabilities assumed, which generally consist of land, buildings, tenant improvements, mortgage debt assumed, and deferred leasing intangibles, which includes in-place leases, above market and below market leases, and tenant relationships, and is therefore subject to subjective

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analysis and uncertainty. The process for determining the allocation to these components requires estimates and assumptions, including rental rates, discount rates, exit capitalization rates, and land value per square foot. We do not believe that the conclusions we reached regarding the allocation of the purchase price of properties, in the current economic and operating environment, would result in a materially different conclusion within any reasonable range of assumptions that could have been applied. As discussed below, we continuously assess our portfolio for the impairment of tangible and intangible rental property and deferred leasing intangible liabilities.

***Rental Property and Deferred Leasing Intangible Liabilities Impairment Assessment***

We have determined that judgments regarding the impairment of tangible and intangible rental property and deferred leasing intangible liabilities represents a critical accounting estimate that has the potential to be material in future periods and has been material in certain periods presented in this Form 10-K. As discussed below in "Critical Accounting Policies," we evaluate the carrying value of all tangible and intangible rental property assets and deferred leasing intangible liabilities (collectively, the "property") held for use for possible impairment when an event or change in circumstance has occurred that indicates their carrying value may not be recoverable. The evaluation includes estimating and reviewing anticipated future undiscounted cash flows to be derived from the property. If such cash flows are less than the property's carrying value, an impairment charge is recognized to the extent by which the asset's carrying value exceeds the estimated fair value. Estimating future cash flows is highly subjective and is based in part on assumptions related to anticipated hold period, future occupancy, rental rates, capital requirements, and exit capitalization rates that could differ from actual results. The discount rate used to present value the cash flows for determining fair value is also subjective. We do not believe that the conclusions we reached regarding the assessment of our rental property assets for impairment, in the current economic and operating environment, would result in a materially different conclusion within any reasonable range of assumptions that could have been applied. Should economic conditions worsen, and the values of industrial assets decline in future periods, then the assumptions and estimates we may make in future impairment analyses, and potential future measurement of impairment charges, could be sensitive and could result in a material change in the range of potential outcomes.

**Critical Accounting Policies**

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

***Rental Property and Deferred Leasing Intangibles***

Rental property is carried at cost less accumulated depreciation and amortization. Expenditures for maintenance and repairs are expensed as incurred. Significant renovations and betterments that extend the economic useful lives of assets are capitalized.

We capitalize costs directly and indirectly related to the development, pre-development, redevelopment, or improvement of rental property. Real estate taxes, compensation costs of development personnel, insurance, interest, and other directly related costs during construction periods are capitalized as incurred, with depreciation commencing with the date the property is substantially completed. Such costs begin to be capitalized to the development projects from the point we are undergoing the necessary activities to get the development project ready for its intended use and cease when the development projects are substantially completed and held available for occupancy. Interest is capitalized based on actual capital expenditures from the period when development or redevelopment commences until the asset is ready for its intended use, at the weighted average borrowing rate of our unsecured indebtedness during the period.

For properties classified as held for sale, we cease depreciating and amortizing the rental property and value the rental property at the lower of depreciated and amortized cost or fair value less costs to dispose. We present those properties classified as held for sale with any qualifying assets and liabilities associated with those properties as held for sale in the accompanying Consolidated Balance Sheets.

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Using information available at the time of acquisition, we allocate the purchase price of properties acquired based upon the fair value of the assets acquired and liabilities assumed, which generally consist of land, buildings, tenant improvements, mortgage debt assumed, and deferred leasing intangibles, which includes in-place leases, above market and below market leases, and tenant relationships. The process for determining the allocation to these components requires estimates and assumptions, including rental rates, discount rates and exit capitalization rates, and land value per square foot, as well as available market information, and is therefore subject to subjective analysis and uncertainty. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. The portion of the purchase price that is allocated to above and below market leases is valued based on the present value of the difference between prevailing market rates and the in-place rates measured over a period equal to the remaining term of the lease term plus the term of any bargain renewal options. The purchase price is further allocated to in-place lease values and tenant relationships based on our evaluation of the specific characteristics of each tenant's lease and its overall relationship with the respective tenant.

The above and below market lease values are amortized into rental income over the remaining lease term. The value of in-place lease intangibles and tenant relationships are amortized over the remaining lease term (and expected renewal period of the respective lease for tenant relationships) as increases to depreciation and amortization expense. The remaining lease terms are adjusted for bargain renewal options or assumed exercises of early termination options, as applicable. If a tenant subsequently terminates its lease, any unamortized portion of above and below market leases is accelerated into rental income and the in-place lease value and tenant relationships are accelerated into depreciation and amortization expense over the shortened lease term.

The purchase price allocated to deferred leasing intangible assets are included in rental property, net on the accompanying Consolidated Balance Sheets, and the purchase price allocated to deferred leasing intangible liabilities are included in deferred leasing intangibles, net on the accompanying Consolidated Balance Sheets under the liabilities section.

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

We evaluate the carrying value of all tangible and intangible rental property assets and deferred leasing intangible liabilities (collectively, the "property") held for use for possible impairment when an event or change in circumstance has occurred that indicates their carrying value may not be recoverable. The evaluation includes estimating and reviewing anticipated future undiscounted cash flows to be derived from the property. If such cash flows are less than the property's carrying value, an impairment charge is recognized to the extent by which the property's carrying value exceeds the estimated fair value. Estimating future cash flows is highly subjective and is based in part on assumptions regarding anticipated hold period, future occupancy, rental rates, capital requirements, and exit capitalization rates that could differ from actual results. The discount rate used to present value the cash flows for determining fair value is also subjective.

Depreciation expense is computed using the straight-line method based on the following estimated useful lives.

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| | |
|:---|:---|
| **Description** | **Estimated Useful Life** |
| Building | 40 Years |
| Building and land improvements (maximum) | 20 years |
| Tenant improvements | Shorter of useful life or terms of related lease |

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***Leases***

For leases in which we are the lessee, we recognize a right-of-use asset and corresponding lease liability on the accompanying Consolidated Balance Sheets equal to the present value of the fixed lease payments. In determining operating right-of-use asset and lease liability for our operating leases, we estimate an appropriate incremental borrowing rate on a fully-collateralized basis for the terms of the leases. We utilize a market-based approach to estimate the incremental borrowing rate for each individual lease. Since the terms under our ground leases are significantly longer than the terms of borrowings available to us on a fully-collateralized basis, the estimate of this rate requires significant judgment, and consider factors such as yields on outstanding public debt and other market based pricing on longer duration financing instruments.

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***Goodwill***

The excess of the cost of an acquired business over the net of the amounts assigned to assets acquired (including identified intangible assets) and liabilities assumed is recorded as goodwill. Our goodwill of approximately $4.9 million represents amounts allocated to the assembled workforce from the acquired management company, and is presented in prepaid expenses and other assets on the accompanying Consolidated Balance Sheets. Our goodwill has an indeterminate life and is not amortized, but is tested for impairment on an annual basis at December 31, or more frequently if events or changes in circumstances indicate that the asset might be impaired. We take a qualitative approach to consider whether an impairment of goodwill exists prior to quantitatively determining the fair value of the reporting unit in step one of the impairment test. We have recorded no impairments to goodwill as of December 31, 2022.

***Use of Derivative Financial Instruments***

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

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

***Fair Value of Financial Instruments***

Financial instruments include cash and cash equivalents, restricted cash, tenant accounts receivable, interest rate swaps, accounts payable, accrued expenses, unsecured credit facility, unsecured term loans, unsecured notes, and mortgage notes. See Note 4 in the accompanying Notes to Consolidated Financial Statements for the fair value of our indebtedness. See Note 5 in the accompanying Notes to Consolidated Financial Statements for the fair value of our interest rate swaps.

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

***Incentive and Equity-Based Employee Compensation Plans***

We grant equity-based compensation awards to our employees and directors in the form of restricted shares of common stock, LTIP units, and performance units. See Notes 6, 7 and 8 in the accompanying Notes to Consolidated Financial Statements for further discussion of restricted shares of common stock, LTIP units, and performance units, respectively. We measure equity-based compensation expense based on the fair value of the awards on the grant date and recognize the expense ratably over the vesting period, and forfeitures are recognized in the period in which they occur.

On January 7, 2021, we adopted the STAG Industrial, Inc. Employee Retirement Vesting Program (the "Vesting Program") to provide supplemental retirement benefits for eligible employees. For those employees who are retirement eligible or will become retirement eligible during the applicable vesting period under the terms of the Vesting Program, we accelerate equity-based compensation through the employee's six-month retirement notification period or retirement eligibility date, respectively.

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***Revenue Recognition***

All current leases are classified as operating leases and rental income is recognized on a straight-line basis over the term of the lease (and expected bargain renewal terms or assumed exercise of early termination options) when collectability is reasonably assured. Differences between rental income earned and amounts due under the lease are charged or credited, as applicable, to accrued rental income.

We determined that for all leases where we are the lessor, that the timing and pattern of transfer of the non-lease components and associated lease components are the same, and that the lease components, if accounted for separately, would be classified as an operating lease. Accordingly, we have made an accounting policy election to recognize the combined component in accordance with Accounting Standards Codification Topic 842 as rental income on the accompanying Consolidated Statements of Operations.

Rental income recognition commences when the tenant takes possession of or controls the physical use of the leased space and the leased space is substantially complete and ready for its intended use. In order to determine whether the leased space is substantially complete and ready for its intended use, we determine whether we or the tenant own the tenant improvements. When it is determined that we are the owner of the tenant improvements, rental income recognition begins when the tenant takes possession of or controls the physical use of the finished space, which is generally when our owned tenant improvements are completed. In instances when it is determined that the tenant is the owner of tenant improvements, rental income recognition begins when the tenant takes possession of or controls the physical use of the leased space.

When we are the owner of tenant improvements or other capital items, the cost to construct the tenant improvements or other capital items, including costs paid for or reimbursed by the tenants, is recorded as capital assets. For these tenant improvements or other capital items, the amount funded by or reimbursed by the tenants are recorded as deferred revenue, which is amortized on a straight-line basis as income over the shorter of the useful life of the capital asset or the term of the related lease.

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

We evaluate cash basis versus accrual basis of rental income recognition based on the collectability of future lease payments.

**Results of Operations**

The following discussion of the results of our same store (as defined below) net operating income ("NOI") should be read in conjunction with our consolidated financial statements included in this report. For a detailed discussion of NOI, including the reasons management believes NOI is useful to investors, see "Non-GAAP Financial Measures" below. Same store results are considered to be useful to investors in evaluating our performance because they provide information relating to changes in building-level operating performance without taking into account the effects of acquisitions or dispositions. We encourage the reader to not only look at our same store results, but also our total portfolio results, due to historic and future growth.

We define same store properties as properties that were in the Operating Portfolio for the entirety of the comparative periods presented. The results for same store properties exclude termination fees, solar income, and other income adjustments. Same store properties exclude Operating Portfolio properties with expansions placed into service after December 31, 2020. On December 31, 2022, we owned 455 industrial buildings consisting of approximately 91.9 million square feet, which represents approximately 82.2% of our total portfolio, that are considered our same store portfolio in the analysis below. Same store occupancy increased approximately 1.3% to 99.1% as of December 31, 2022 compared to 97.8% as of December 31, 2021.

Discussions of selected operating information for our same store portfolio and our total portfolio for the comparison of the years ended December 31, 2021 and 2020 that are not included in this Form 10-K can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the SEC on February 16, 2022.

***Comparison of the year ended December 31, 2022 to the year ended December 31, 2021***

The following table summarizes selected operating information for our same store portfolio and our total portfolio for the years ended December 31, 2022 and 2021 (dollars in thousands). This table includes a reconciliation from our same store portfolio to our total portfolio by also providing information for the years ended December 31, 2022 and 2021 with respect to the buildings acquired and disposed of and Operating Portfolio buildings with expansions placed into service or transferred from the Value

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Add Portfolio to the Operating Portfolio after December 31, 2020 and our flex/office buildings, Value Add Portfolio, and buildings classified as held for sale.

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Same Store Portfolio** | **Same Store Portfolio** | **Same Store Portfolio** | **Acquisitions/Dispositions** | **Acquisitions/Dispositions** | **Other** | **Other** | **Total Portfolio** | **Total Portfolio** | **Total Portfolio** |
| | **Year ended December 31,** | **Year ended December 31,** | **Change** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Change** |
| | **2022** | **2021** | $**%** | **2022** | **2021** | **2022** | **2021** | **2022** | **2021** | $**%** |
| **Revenue** |  |  |  |  |  |  |  |  |  |  |
| *Operating revenue* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Rental income | $526819 | $508810 | 3.5% | $102758 | $38162 | $24800 | $12460 | $654377 | $559432 | 17.0% |
| &nbsp;&nbsp;&nbsp;Other income | 370 | 517 | (28.4)% | 236 | 70 | 2362 | 2140 | 2968 | 2727 | 8.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;*Total operating revenue* | 527189 | 509327 | 3.5% | 102994 | 38232 | 27162 | 14600 | 657345 | 562159 | 16.9% |
| **Expenses** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Property | 100674 | 97501 | 3.3% | 19732 | 8419 | 5295 | 2066 | 125701 | 107986 | 16.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;*Net operating income*<sup>(1)</sup> | $426515 | $411826 | 3.6% | $83262 | $29813 | $21867 | $12534 | 531644 | 454173 | 17.1% |
| *Other expenses* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | &nbsp;&nbsp;&nbsp;General and administrative |  |  |  |  |  |  | 46958 | 48629 | (3.4)% |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | &nbsp;&nbsp;&nbsp;Depreciation and amortization |  |  |  |  |  |  | 275040 | 238699 | 15.2% |
| &nbsp;&nbsp;&nbsp;Loss on impairments | &nbsp;&nbsp;&nbsp;Loss on impairments |  |  |  |  |  |  | 1783 |  | 100.0% |
| &nbsp;&nbsp;&nbsp;Other expenses | &nbsp;&nbsp;&nbsp;Other expenses |  |  |  |  |  |  | 4363 | 2878 | 51.6% |
| &nbsp;&nbsp;&nbsp;*Total other expenses* | &nbsp;&nbsp;&nbsp;*Total other expenses* |  |  |  |  |  |  | 328144 | 290206 | 13.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total expenses | &nbsp;&nbsp;&nbsp;&nbsp;Total expenses |  |  |  |  |  |  | 453845 | 398192 | 14.0% |
| Other income (expense) | Other income (expense) |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest and other income | &nbsp;&nbsp;&nbsp;Interest and other income |  |  |  |  |  |  | 103 | 121 | (14.9)% |
| &nbsp;&nbsp;&nbsp;Interest expense | &nbsp;&nbsp;&nbsp;Interest expense |  |  |  |  |  |  | (78018) | (63484) | 22.9% |
| &nbsp;&nbsp;&nbsp;Debt extinguishment and modification expenses | &nbsp;&nbsp;&nbsp;Debt extinguishment and modification expenses | &nbsp;&nbsp;&nbsp;Debt extinguishment and modification expenses |  |  |  |  |  | (838) | (2152) | (61.1)% |
| &nbsp;&nbsp;&nbsp;Gain on the sales of rental property, net | &nbsp;&nbsp;&nbsp;Gain on the sales of rental property, net |  |  |  |  |  |  | 57487 | 97980 | (41.3)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | &nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) |  |  |  |  |  |  | (21266) | 32465 | (165.5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net income** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net income** |  |  |  |  |  |  | $**182234** | $**196432** | **(7.2)%** |

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

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***Net Income***

Net income for our total portfolio decreased by approximately $14.2 million or 7.2% to approximately $182.2 million for the year ended December 31, 2022 compared to approximately $196.4 million for the year ended December 31, 2021.

***Same Store Total Operating Revenue***

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

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

Same store rental income, which is comprised of lease income and other billings as discussed below, increased by approximately $18.0 million or 3.5% to approximately $526.8 million for the year ended December 31, 2022 compared to approximately $508.8 million for the year ended December 31, 2021.

Same store lease income increased approximately $13.8 million or 3.3% to approximately $434.8 million for the year ended December 31, 2022 compared to approximately $421.0 million for the year ended December 31, 2021. Approximately $16.2 million of the increase was attributable to rental increases due to the execution of new leases and lease renewals with existing tenants and a net decrease in the amortization of net above market leases of approximately $0.4 million. The increase was also attributable to an increase in rental income of approximately $0.8 million at one property in which, during the year ended December 31, 2021, we determined that the future collectability of rental payments was not reasonably assured, and accordingly, we converted to the cash basis of accounting and reversed any accounts receivable and accrued rent balances into rental income and did not recognize revenue for payments that were not received from the tenant. The lease was subsequently terminated and replaced with a new tenant in September 2021, and during the year ended December 31, 2022, the former tenant repaid the rental amounts past due, both of which contributed to the increase in rental income during the year ended December 31, 2022 compared to the year ended December 31, 2021. These increases were partially offset by the reduction of base rent of approximately $3.6 million due to tenant vacancy.

Same store other billings increased approximately $4.2 million or 4.8% to approximately $92.0 million for the year ended December 31, 2022 compared to approximately $87.8 million for the year ended December 31, 2021. The increase was attributable to an increase of approximately $4.7 million related to other expense reimbursements which was primarily due to an increase in corresponding expenses. This increase was partially offset by a decrease in real estate taxes levied by taxing authorities of approximately $0.5 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 portfolio operating expenses to net income, see the table above.

Total same store operating expenses increased approximately $3.2 million or 3.3% to approximately $100.7 million for the year ended December 31, 2022 compared to approximately $97.5 million for the year ended December 31, 2021. This increase was due to increases in insurance, utility, repairs and maintenance, snow removal, and other expenses of approximately $0.6 million, $1.0 million, $0.8 million, $0.7 million, and $0.7 million, respectively. These increases were partially offset by a decrease in real estate tax expense of approximately $0.6 million due to a decrease in real estate taxes levied by taxing authorities.

***Acquisitions and Dispositions Net Operating Income***

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

Subsequent to December 31, 2020, we acquired 90 buildings consisting of approximately 15.4 million square feet (excluding ten buildings that were included in the Value Add Portfolio at December 31, 2022 or transferred from the Value Add Portfolio to the Operating Portfolio after December 31, 2020), and sold 30 buildings consisting of approximately 4.4 million square feet and one land parcel. For the years ended December 31, 2022 and December 31, 2021, the buildings acquired after December 31, 2020 contributed approximately $80.9 million and $18.8 million to NOI, respectively. For the years ended

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December 31, 2022 and December 31, 2021, the buildings sold after December 31, 2020 contributed approximately $2.4 million and $11.0 million to NOI, respectively. Refer to Note 3 in the accompanying Notes to consolidated Financial Statements for additional discussion regarding buildings acquired or sold.

***Other Net Operating Income***

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

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

These buildings contributed approximately $16.2 million and $9.1 million to NOI for the years ended December 31, 2022 and December 31, 2021, respectively. Additionally, there was approximately $5.7 million and $3.4 million of termination, solar, and other income adjustments from certain buildings in our same store portfolio for the years ended December 31, 2022 and December 31, 2021, 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 approximately $37.9 million or 13.1% for the year ended December 31, 2022 to approximately $328.1 million compared to approximately $290.2 million for the year ended December 31, 2021. This is primarily a result of an increase in depreciation and amortization of approximately $36.3 million as a result of net acquisitions that increased the depreciable asset base. Additionally, a loss on impairment of approximately $1.8 million was recognized for the year ended December 31, 2022, as discussed in Note 3 of the accompanying Notes to Consolidated Financial Statements, that did not occur during the year ended December 31, 2021. Other expenses also increased approximately $1.5 million, which was primarily attributed to the relinquishment of an acquisition deposit of approximately $2.1 million related to a terminated acquisition contract during the year ended December 31, 2022. These increases were partially offset by a decrease in general and administrative expenses of approximately $1.7 million which was primarily due to the severance costs of a former executive officer of approximately $2.1 million during the year ended December 31, 2021 that did not recur during the year ended December 31, 2022, as well as due to the adoption of the Vesting Program on January 7, 2021 and related acceleration of equity-based compensation expense for certain eligible employees that did not recur during the year ended December 31, 2022. These decreases in general and administrative expenses were offset by an increase in payroll costs.

***Total Other Income (Expense)***

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

Total net other income decreased approximately $53.7 million or 165.5% to approximately $21.3 million total other expense for the year ended December 31, 2022 compared to approximately $32.5 million total other income for the year ended December 31, 2021. This decrease is primarily the result of a decrease in gain on the sales of rental property, net of approximately $40.5 million. There was also an increase in interest expense of approximately $14.5 million which is primarily attributable to the issuance of $325.0 million and $400.0 million of unsecured notes on September 28, 2021 and June 28, 2022, respectively. Debt extinguishment and modification expenses also decreased approximately $1.3 million during the year ended December 31, 2022. The debt extinguishment and modification expenses during the year ended December 31, 2022 were related to the refinance of our unsecured term loans on July 26, 2022, as discussed in Note 4 of the accompanying Notes to Consolidated Financial Statements. The debt extinguishment and modification expenses during the year ended December 31, 2021 were primarily related to the refinance of our unsecured term loans on October 26, 2021, as discussed in Note 4 of the accompanying Notes to Consolidated Financial Statements.

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**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 SEC. As a result, we are required to include in this report a statement of why management believes that presentation of these measures provides useful information to investors.

***Funds From Operations***

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

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, 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 summarizes a reconciliation of our FFO attributable to common stockholders and unit holders for the periods presented to net income, the nearest GAAP equivalent.

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| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|<br>**Reconciliation of Net Income to FFO (in thousands)** | **2022** | **2021** | **2020** |
| **Net income** | $**182234** | $**196432** | $**206795** |
| Rental property depreciation and amortization | 274823 | 238487 | 214464 |
| Loss on impairments | 1783 |  | 5577 |
| Gain on the sales of rental property, net | (57487) | (97980) | (135733) |
| **FFO** | $**401353** | $**336939** | $**291103** |
| Preferred stock dividends |  | (1289) | (5156) |
| Redemption of preferred stock |  | (2582) |  |
| Amount allocated to restricted shares of common stock and unvested units | (558) | (838) | (756) |
| **FFO attributable to common stockholders and unit holders** | $**400795** | $**332230** | $**285191** |

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***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, real estate tax expense and insurance expense. 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 summarizes a reconciliation of our NOI for the periods presented to net income, the nearest GAAP equivalent.

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| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|<br>**Reconciliation of Net Income to NOI (in thousands)** | **2022** | **2021** | **2020** |
| **Net income** | $**182234** | $**196432** | $**206795** |
| General and administrative | 46958 | 48629 | 40072 |
| Depreciation and amortization | 275040 | 238699 | 214738 |
| Interest and other income | (103) | (121) | (446) |
| Interest expense | 78018 | 63484 | 62343 |
| Loss on impairments | 1783 |  | 5577 |
| Gain on involuntary conversion |  |  | (2157) |
| Debt extinguishment and modification expenses | 838 | 2152 | 834 |
| Other expenses | 4363 | 2878 | 2029 |
| Gain on the sales of rental property, net | (57487) | (97980) | (135733) |
| **Net operating income** | $**531644** | $**454173** | $**394052** |

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**Cash Flows**

***Comparison of the year ended December 31, 2022 to the year ended December 31, 2021***

The following table summarizes our cash flows for the year ended December 31, 2022 compared to the year ended December 31, 2021.

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| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Change** |
|<br>**Cash Flows (dollars in thousands)** | **2022** | **2021** | $**%** |
| Net cash provided by operating activities | $387931 | $336154 | 15.4% |
| Net cash used in investing activities | $447524 | $1220420 | (63.3)% |
| Net cash provided by financing activities | $63186 | $887123 | (92.9)% |

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Net cash provided by operating activities increased approximately $51.8 million to approximately $387.9 million for the year ended December 31, 2022, compared to approximately $336.2 million for the year ended December 31, 2021. The increase was primarily attributable to incremental operating cash flows from property acquisitions completed after December 31, 2021, and operating performance at existing properties. These increases were partially offset by the loss of cash flows from property dispositions completed after December 31, 2021 and fluctuations in working capital due to timing of payments and rental receipts.

Net cash used in investing activities decreased approximately $772.9 million to approximately $447.5 million for the year ended December 31, 2022, compared to approximately $1,220.4 million for the year ended December 31, 2021. The decrease was primarily attributable to the acquisition of 26 buildings during the year ended December 31, 2022 of approximately $472.6 million, compared to the acquisition of 74 buildings during the year ended December 31, 2021 of approximately $1,365.8 million. This decrease was also attributable to a decrease in proceeds from sales of rental property, net of approximately $52.6 million during the year ended December 31, 2022 compared to the year ended December 31, 2021. This decrease in net cash used in investing activities was partially offset by an increase in cash paid for additions of land and building and improvements of approximately $72.2 million during the year ended December 31, 2022 compared to the year ended December 31, 2021.

Net cash provided by financing activities decreased approximately $823.9 million to approximately $63.2 million for the year ended December 31, 2022, compared to approximately $887.1 million for the year ended December 31, 2021. This decrease was primarily attributable to decrease in net proceeds received from the sale of common stock of approximately $652.2 million during the year ended December 31, 2022 compared to the year ended December 31, 2021. The decrease was also attributable to a net cash outflow of approximately $310.0 million from our unsecured credit facility and an increase of approximately $21.1 million in dividends paid during the year ended December 31, 2022 compared to the year ended December 31, 2021. Additionally, we paid in full a mortgage note in the amount of approximately $46.6 million during the year ended December 31, 2022 that did not occur during the year ended December 31, 2021, as discussed in Note 4 of the accompanying Notes to Consolidated Financial Statements. These decreases were partially offset by increases in the funding of unsecured term loans and unsecured notes in the amount of $50.0 million and $75.0 million, respectively, during the year ended December 31, 2022 compared to the year ended December 31, 2021. Additionally, the decrease was also partially offset by the redemption of preferred stock with an aggregate liquidation value of $75.0 million during the year ended December 31, 2021 that did not recur during the year ended December 31, 2022.

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

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

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

As of December 31, 2022, we had total immediate liquidity of approximately $847.3 million, comprised of $25.9 million of cash and cash equivalents and $821.4 million of immediate availability on our unsecured credit facility.

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

On March 31, 2021, we redeemed all 3,000,000 issued and outstanding shares of 6.875% Series C Cumulative Redeemable Preferred Stock, par value $0.01 per share ("Series C Preferred Stock"), at a cash redemption price of $25.00 per share, plus accrued and unpaid dividends to, but excluding, the redemption date.

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***Indebtedness Outstanding***

The following table summarizes certain information with respect to our indebtedness outstanding as of December 31, 2022.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Loan** | **Principal Outstanding as of December 31, 2022 (in thousands)** | **Interest <br>Rate**<sup>(1)(2)</sup> | **Maturity Date** | **Prepayment Terms**<sup>(3)</sup>  |
| **Unsecured credit facility:** | | | | |
| Unsecured Credit Facility<sup>(4)</sup> | $175000 | Term SOFR + 0.855% | October 23, 2026 | i |
| **Total unsecured credit facility** | **175000** |  |  |  |
| **Unsecured term loans:** |  |  |  |  |
| Unsecured Term Loan F | 200000 | 2.94% | January 12, 2025 | i |
| Unsecured Term Loan G | 300000 | 1.09% | February 5, 2026 | i |
| Unsecured Term Loan A | 150000 | 2.14% | March 15, 2027 | i |
| Unsecured Term Loan H | 187500 | 3.75% | January 25, 2028 | i |
| Unsecured Term Loan I | 187500 | 2.89% | January 25, 2028 | i |
| Total unsecured term loans | 1025000 |  |  |  |
| Total unamortized deferred financing fees and debt issuance costs | (4560) |  |  |  |
| **Total carrying value unsecured term loans, net** | **1020440** |  |  |  |
| **Unsecured notes:** |  |  |  |  |
| Series F Unsecured Notes<sup>(5)</sup> | 100000 | 3.98% | January 5, 2023 | ii |
| Series A Unsecured Notes | 50000 | 4.98% | October 1, 2024 | ii |
| Series D Unsecured Notes | 100000 | 4.32% | February 20, 2025 | ii |
| Series G Unsecured Notes | 75000 | 4.10% | June 13, 2025 | ii |
| Series B Unsecured Notes | 50000 | 4.98% | July 1, 2026 | ii |
| Series C Unsecured Notes | 80000 | 4.42% | December 30, 2026 | ii |
| Series E Unsecured Notes | 20000 | 4.42% | February 20, 2027 | ii |
| Series H Unsecured Notes | 100000 | 4.27% | June 13, 2028 | ii |
| Series I Unsecured Notes | 275000 | 2.80% | September 29, 2031 | ii |
| Series K Unsecured Notes | 400000 | 4.12% | June 28, 2032 | ii |
| Series J Unsecured Notes | 50000 | 2.95% | September 28, 2033 | ii |
| Total unsecured notes | 1300000 |  |  |  |
| Total unamortized deferred financing fees and debt issuance costs | (4558) |  |  |  |
| **Total carrying value unsecured notes, net** | **1295442** |  |  |  |
| **Mortgage notes (secured debt):** |  |  |  |  |
| Thrivent Financial for Lutherans | 3296 | 4.78% | December 15, 2023 | iii |
| United of Omaha Life Insurance Company | 4744 | 3.71% | October 1, 2039 | ii |
| Total mortgage notes | 8040 |  |  |  |
| Net unamortized fair market value discount | (137) |  |  |  |
| Total unamortized deferred financing fees and debt issuance costs | (5) |  |  |  |
| **Total carrying value mortgage notes, net** | **7898** |  |  |  |
| **Total / weighted average interest rate**<sup>(6)</sup> | $**2498780** | **3.39%** |  |  |

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(1)Interest rate as of December 31, 2022. At December 31, 2022, the one-month Term Term SOFR was 4.35806%. 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 or discounts. The spread over the applicable rate for our unsecured credit facility and unsecured term loans is based on our debt rating and leverage ratio, as defined in the respective loan agreements.

(2)Our unsecured credit facility has a stated rate of one-month Term SOFR plus a 0.10% adjustment and a spread of 0.775%, less a sustainability-related interest rate adjustment of 0.02%. The unsecured term loans A, F, and G have a stated interest rate of one-month Term SOFR plus a 0.10% adjustment and a spread of 0.85%, less a sustainability-related interest rate adjustment of 0.02%. The unsecured term loans H and I have a stated interest rate of one-month Term SOFR plus a 0.10% adjustment and a spread of 0.85%. As of December 31, 2022, one-month Term SOFR for the Unsecured Term Loans A, F, G, H, and I was swapped to a fixed rate of 1.31%, 2.11%, 0.26%, 2.90%, and 2.04%, respectively (which includes the 0.10% adjustment). One-month Term SOFR for the Unsecured Term Loan G will be swapped to a fixed rate of 0.95% effective April 18, 2023. One-month Term SOFR for the Unsecured Term Loan I will be swapped to a fixed rate of 2.66% effective January 4, 2023. One-month Term SOFR for the Unsecured Term Loan H will be swapped to a fixed rate of 2.50% effective January 12, 2024.

(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.

(4)The capacity of our unsecured credit facility is $1.0 billion. The initial maturity date is October 24, 2025, or such later date which may be extended pursuant to two six-month extension options exercisable by us in our discretion upon advance written notice. Exercise of each six-month option is subject to the following conditions: (i) absence of a default immediately before the extension and immediately after giving effect to the extension, (ii) accuracy of representations and warranties as of the extension date (both immediately before and after the extension), as if made on the extension date, and (iii) payment of a fee. Neither extension option is subject to lender consent, assuming proper notice and satisfaction of the conditions. We are required to pay a

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facility fee on the aggregate commitment amount (currently $1.0 billion) at a rate per annum of 0.1% to 0.3%, depending on our debt rating, as defined in the credit agreement. The facility fee is due and payable quarterly.

(5)Subsequent to December 31, 2022, on January 5, 2023, the Series F Unsecured Notes were repaid in full. See below for additional details.

(6)The weighted average interest rate was calculated using the fixed interest rate swapped on the notional amount of $1,025.0 million of debt, and is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums or discounts.

On October 3, 2022, we achieved a 2022 public disclosure assessment score of "A" from the Global Real Estate Sustainability Benchmark (GRESB). The improved score triggered a sustainability-related interest rate adjustment for our unsecured credit facility and the Unsecured Term Loan A, the Unsecured Term Loan F, and the Unsecured Term Loan G. The 0.02% interest rate reduction for each instrument became effective on October 17, 2022 and will end on June 29, 2024, in accordance with the respective loan agreements.

The following table summarizes our debt capital structure as of December 31, 2022.

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| | |
|:---|:---|
| **Debt Capital Structure** | **December 31, 2022** |
| Total principal outstanding (in thousands) | $2508040 |
| Weighted average duration (years) | 5.2 |
| % Secured debt | 0.3% |
| % Debt maturing next 12 months | 4.1% |
| Net Debt to Real Estate Cost Basis<sup>(1)</sup> | 36.0% |

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

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

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

*Unsecured Credit Facility*

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

The aggregate undrawn nominal commitments on our unsecured credit facility as of December 31, 2022 was approximately $821.4 million, including issued letters of credit. Our actual borrowing capacity at any given point in time may be less and is restricted to a maximum amount based on our debt covenant compliance.

*Unsecured Term Loans* 

On September 1, 2022, we entered into separate amended and restated term loan agreements for the Unsecured Term Loan A, the Unsecured Term Loan F, and the Unsecured Term Loan G (the "Amended and Restated Unsecured Term Loans"), to provide that borrowings under the Amended and Restated Unsecured Term Loans bear a current annual interest rate of one-month Term SOFR, plus an adjustment of 0.10% and a spread of 0.85%, based on our debt rating and leverage ratio (as defined in the applicable loan agreement). Other than the interest rate provisions described above, the material terms of the Amended and Restated Unsecured Term Loans, including the maturity dates, remain unchanged.

On July 26, 2022, we entered into (i) a term loan agreement with Wells Fargo Bank, National Association and the other lenders party thereto, providing for a new senior unsecured term loan in the original principal amount of $187.5 million ("Unsecured Term Loan H"), and (ii) a term loan agreement with Bank of America, N.A. and the other lenders party thereto, providing for a new senior unsecured term loan in the original principal amount of $187.5 million ("Unsecured Term Loan I"). Each of the Unsecured Term Loan H and the Unsecured Term Loan I bears a current annual interest rate of one-month Term SOFR, plus a 0.10% adjustment and a spread of 0.85% based on our debt rating and leverage ratio (as defined in the applicable loan

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agreement), and matures on January 25, 2028. We used a portion of the borrowings under the new unsecured term loans to repay in full the $150.0 million Unsecured Term Loan D and the $175.0 million Unsecured Term Loan E.

*Unsecured Notes*

Subsequent to December 31, 2022, on January 5, 2023, we redeemed in full at maturity the $100.0 million in aggregate principal amount of the Series F Unsecured Notes with a fixed interest rate of 3.98%.

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

*Mortgage Notes*

On September 1, 2022, we repaid in full the mortgage note associated with the Wells Fargo Bank, National Association CMBS Loan.

***Unsecured Indebtedness – Financial Covenants and Other Terms***

The unsecured credit facility provides for a facility fee payable by us to the lenders at a rate per annum of 0.1% to 0.3%, depending on our debt rating, as defined in the credit agreement, of the aggregate commitments (currently $1.0 billion). The facility fee is due and payable quarterly.

*Financial Covenants:* Our ability to borrow, maintain borrowings and avoid default under our unsecured credit facility, unsecured term loans, and unsecured notes is subject to our ongoing compliance with a number of financial covenants, including:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a maximum secured leverage ratio of not greater than 0.40:1.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a maximum unencumbered leverage ratio of not greater than 0.60:1.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a minimum fixed charge ratio of not less than or equal to 1.50:1.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a minimum unsecured interest coverage ratio of not less than or equal to 1.75:1.00; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• with respect to our unsecured notes, a minimum interest coverage ratio of not less than 1.50:1.00.

As of December 31, 2022, we were in compliance with the applicable financial covenants.

Pursuant to the terms of our unsecured debt agreements, we may not pay distributions that exceed the minimum amount required for us to qualify and maintain our status as a REIT if a default or event of default occurs and is continuing.

Pursuant to the terms of our unsecured loan agreements, if a default or event of default occurs and is continuing, we may not pay distributions that exceed the minimum amount required for us to qualify and maintain our status as a REIT.

*Events of Default:* Our unsecured credit facility and unsecured term loans contain customary events of default, including, but not limited to, non-payment of principal, interest, fees or other amounts, defaults in the compliance with the financial and other covenants contained in the applicable loan agreement, cross-defaults to other material debt, and bankruptcy or other insolvency events.

*Borrower and Guarantors:* Our Operating Partnership is the borrower under our unsecured credit facility and unsecured term loans and the issuer of the unsecured notes. The Company and certain of its subsidiaries guarantee the obligations under our unsecured loan agreements.

***Supplemental Guarantor Information***

We have filed a registration statement with the SEC allowing us to offer, from time to time, an indefinite amount of equity and debt securities on an as-needed basis, including debt securities of our Operating Partnership that are guaranteed by the

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Company. Any such guarantees issued by the Company will be full, irrevocable, unconditional, and absolute joint and several guarantees to the holders of each series of such outstanding guaranteed debt securities. Pursuant to Rule 3-10 of Regulation S-X, subsidiary issuers of obligations guaranteed by the parent are not required to provide separate financial statements, provided that the subsidiary obligor is consolidated into the parent company's consolidated financial statements, the parent guarantee is "full and unconditional" and, subject to certain exceptions as set forth below, the alternative disclosure required by Rule 13-01 of Regulation S-X is provided, which includes narrative disclosure and summarized financial information. Accordingly, we have not presented separate consolidated financial statements of our Operating Partnership. Furthermore, as permitted under Rule 13-01(a)(4)(vi) of Regulation S-X, we have not presented summarized financial information for our Operating Partnership because the assets, liabilities, and results of operations of our Operating Partnership are not materially different than the corresponding amounts in the Company's consolidated financial statements, and we believe the inclusion of such summarized financial information would be repetitive and would not provide incremental value to investors.

***Equity***

*Preferred Stock*

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

*Common Stock*

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

The following table summarizes our ATM common stock offering program as of December 31, 2022. Pursuant to the equity distribution agreements for our ATM common stock offering program, we may from time to time sell common stock through sales agents and their affiliates, including shares sold on a forward basis under forward sale agreements. There was no activity under the ATM common stock offering program during the three months ended December 31, 2022.

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| | | | |
|:---|:---|:---|:---|
| **ATM Common Stock Offering Program** | **Date** | **Maximum Aggregate Offering Price (in thousands)** | **Aggregate Common Stock Available as of December 31, 2022 (in thousands)** |
| 2022 $750 million ATM | February 17, 2022 | $750000 | $750000 |

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

*Noncontrolling Interests*

We own all of our properties and conduct substantially all of our business through our Operating Partnership. We are the sole member of the sole general partner of our Operating Partnership. As of December 31, 2022, we owned approximately 97.9% of the common units in our Operating Partnership, and our current and former executive officers, directors, senior employees and their affiliates, and third parties that contributed properties to us in exchange for common units owned the remaining 2.1%.

**Interest Rate Risk**

We use interest rate swaps to fix the rate of our variable rate debt. As of December 31, 2022, all of our outstanding variable rate debt, with the exception of our unsecured credit facility, was fixed with interest rate swaps through maturity.

We recognize all derivatives on the balance sheet at fair value. If the derivative is designated as a hedge, depending on the nature of the hedge, changes in the fair value of derivatives are either offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or recognized in other comprehensive income (loss), which is a component of equity. Derivatives that are not designated as hedges must be adjusted to fair value and the changes in fair value must be reflected as income or expense.

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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, Fitch Ratings, or other nationally recognized rating agencies.

The following table summarizes our outstanding interest rate swaps as of December 31, 2022.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Interest Rate Derivative Counterparty** | **Trade Date** | **Effective Date** | **Notional Amount <br>(in thousands)** | **Fair Value <br>(in thousands)** | **Pay Fixed Interest Rate** | **Receive Variable Interest Rate** | **Maturity Date** |
| The Toronto-Dominion Bank | Jul-20-2017 | Jul-28-2022 | $25000 | $5 | 1.8830% | One-month Term SOFR | Jan-04-2023 |
| Royal Bank of Canada | Jul-20-2017 | Jul-28-2022 | $25000 | $5 | 1.8980% | One-month Term SOFR | Jan-04-2023 |
| Wells Fargo Bank, N.A. | Jul-20-2017 | Jul-28-2022 | $25000 | $5 | 1.8750% | One-month Term SOFR | Jan-04-2023 |
| PNC Bank, N.A. | Jul-20-2017 | Jul-28-2022 | $25000 | $5 | 1.8860% | One-month Term SOFR | Jan-04-2023 |
| PNC Bank, N.A. | Jul-20-2017 | Jul-28-2022 | $50000 | $10 | 1.8850% | One-month Term SOFR | Jan-04-2023 |
| The Toronto-Dominion Bank | Apr-20-2020 | Aug-10-2022 | $75000 | $981 | 0.2660% | One-month Term SOFR | Apr-18-2023 |
| Wells Fargo Bank, N.A. | Apr-20-2020 | Aug-10-2022 | $75000 | $984 | 0.2520% | One-month Term SOFR | Apr-18-2023 |
| The Toronto-Dominion Bank | Apr-20-2020 | Aug-10-2022 | $75000 | $981 | 0.2660% | One-month Term SOFR | Apr-18-2023 |
| Wells Fargo Bank, N.A. | Apr-20-2020 | Aug-10-2022 | $75000 | $984 | 0.2520% | One-month Term SOFR | Apr-18-2023 |
| Bank of Montreal | Jul-24-2018 | Jul-26-2022 | $50000 | $999 | 2.9160% | One-month Term SOFR | Jan-12-2024 |
| The Toronto-Dominion Bank | Jul-24-2018 | Jul-26-2022 | $50000 | $1003 | 2.9080% | One-month Term SOFR | Jan-12-2024 |
| PNC Bank, N.A. | Jul-24-2018 | Jul-26-2022 | $50000 | $997 | 2.9190% | One-month Term SOFR | Jan-12-2024 |
| U.S. Bank, N.A. | Jul-24-2018 | Jul-26-2022 | $25000 | $500 | 2.9120% | One-month Term SOFR | Jan-12-2024 |
| Wells Fargo Bank, N.A. | May-02-2019 | Aug-15-2022 | $50000 | $2179 | 2.2360% | One-month Term SOFR | Jan-15-2025 |
| U.S. Bank, N.A. | May-02-2019 | Aug-15-2022 | $50000 | $2182 | 2.2380% | One-month Term SOFR | Jan-15-2025 |
| Regions Bank | May-02-2019 | Aug-15-2022 | $50000 | $2177 | 2.2389% | One-month Term SOFR | Jan-15-2025 |
| Bank of Montreal | Jul-16-2019 | Aug-15-2022 | $50000 | $2700 | 1.7100% | One-month Term SOFR | Jan-15-2025 |
| U.S. Bank, N.A. | Feb-17-2021 | Apr-18-2023 | $150000 | $12024 | 0.9520% | One-month Term SOFR | Feb-5-2026 |
| Wells Fargo Bank, N.A. | Feb-17-2021 | Apr-18-2023 | $75000 | $6003 | 0.9460% | One-month Term SOFR | Feb-5-2026 |
| The Toronto-Dominion Bank | Feb-17-2021 | Apr-18-2023 | $75000 | $6050 | 0.9355% | One-month Term SOFR | Feb-5-2026 |
| Regions Bank | Oct-26-2021 | Aug-01-2022 | $50000 | $4953 | 1.3090% | One-month Term SOFR | Mar-15-2027 |
| Bank of Montreal | Oct-26-2021 | Aug-01-2022 | $50000 | $4976 | 1.3090% | One-month Term SOFR | Mar-15-2027 |
| PNC Bank, N.A. | Oct-26-2021 | Aug-01-2022 | $50000 | $4952 | 1.3150% | One-month Term SOFR | Mar-15-2027 |
| PNC Bank, N.A. | Jul-27-2022 | Jan-04-2023 | $50000 | $2623 | 2.6420% | One-month Term SOFR | Jan-25-2028 |
| The Toronto-Dominion Bank | Jul-27-2022 | Jan-04-2023 | $50000 | $2614 | 2.6530% | One-month Term SOFR | Jan-25-2028 |
| Regions Bank | Jul-27-2022 | Jan-04-2023 | $50000 | $2583 | 2.6550% | One-month Term SOFR | Jan-25-2028 |
| U.S. Bank, N.A. | Jul-27-2022 | Jan-12-2024 | $75000 | $2668 | 2.4865% | One-month Term SOFR | Jan-25-2028 |
| The Toronto-Dominion Bank | Jul-27-2022 | Jan-12-2024 | $50000 | $1778 | 2.4910% | One-month Term SOFR | Jan-25-2028 |
| Wells Fargo Bank, N.A. | Jul-27-2022 | Jan-12-2024 | $50000 | $1756 | 2.4930% | One-month Term SOFR | Jan-25-2028 |
| PNC Bank, N.A. | Jul-27-2022 | Jul-27-2022 | $50000 | $2546 | 2.6790% | One-month Term SOFR | Jan-25-2028 |

---

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 December 31, 2022, the fair value of all 30 of our interest rate swaps were in an asset position of approximately $72.2 million, including any adjustment for nonperformance risk related to these agreements.

As of December 31, 2022, we had $1.2 billion of variable rate debt. As of December 31, 2022, all of our outstanding variable rate debt, with the exception of our unsecured credit facility, was fixed with interest rate swaps through maturity. To the extent interest rates increase, interest costs on our floating rate debt not fixed with interest rate swaps will increase, which could adversely affect our cash flow and our ability to pay principal and interest on our debt and our ability to make distributions to our security holders. From time to time, we may enter into interest rate swap agreements and other interest rate hedging contracts, including swaps, caps and floors. In addition, an increase in interest rates could decrease the amounts third parties are willing to pay for our assets, thereby limiting our ability to change our portfolio promptly in response to changes in economic or other conditions.

**Off-balance Sheet Arrangements**

As of December 31, 2022, we had letters of credit related to development projects and certain other agreements of approximately $3.6 million. As of December 31, 2022, we had no other material off-balance sheet arrangements.

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<u>[**Table of Contents**](#ic34b9f2cdc6c4571bc486ff37be14e07_7)</u>

**Item 7A. Quantitative and Qualitative Disclosures about Market Risk**

Our future income, cash flows and fair values relevant to financial instruments are dependent upon prevailing market interest rates. Market risk refers to the risk of loss from adverse changes in market prices and interest rates. The primary market risk we are exposed to is interest rate risk. We have used derivative financial instruments to manage, or hedge, interest rate risks related to our borrowings, primarily through interest rate swaps.

As of December 31, 2022, we had $1.2 billion of variable rate debt outstanding. As of December 31, 2022, all of our outstanding variable rate debt, with the exception of our unsecured credit facility which had a balance of $175.0 million, was fixed with interest rate swaps through maturity. To the extent we undertake additional variable rate indebtedness, if interest rates increase, then so will the interest costs on our unhedged variable rate debt, which could adversely affect our cash flow and our ability to pay principal and interest on our debt and our ability to make distributions to our security holders. Further, rising interest rates could limit our ability to refinance existing debt when it matures or significantly increase our future interest expense. From time to time, we enter into interest rate swap agreements and other interest rate hedging contracts, including swaps, caps and floors. While these agreements are intended to lessen the impact of rising interest rates on us, they also expose us to the risk that the other parties to the agreements will not perform, we could incur significant costs associated with the settlement of the agreements, the agreements will be unenforceable and the underlying transactions will fail to qualify as highly-effective cash flow hedges under GAAP. In addition, an increase in interest rates could decrease the amounts third parties are willing to pay for our assets, thereby limiting our ability to change our portfolio promptly in response to changes in economic or other conditions. In addition, an increase in interest rates could decrease the amounts third parties are willing to pay for our assets, thereby limiting our ability to change our portfolio promptly in response to changes in economic or other conditions. If interest rates increased by 100 basis points and assuming we had an outstanding balance of $175.0 million on our unsecured credit facility for the year ended December 31, 2022, our interest expense would have increased by approximately $1.8 million for the year ended December 31, 2022.

**Item 8. Financial Statements and Supplementary Data**

The required response under this Item 8, "Financial Statements and Supplementary Data" is submitted in a separate section of this report. See Index to Consolidated Financial Statements on page F-1.

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

None.

**Item 9A. Controls and Procedures**

**Evaluation of Disclosure Controls and Procedures**

As required by SEC Rule 13a-15(b), we have evaluated, under the supervision of and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act, as of December 31, 2022. Based on the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures for the periods covered by this report were effective to provide reasonable assurance that information required to be disclosed by the Company in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

**Management's Report on Internal Control Over Financial Reporting**

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act. Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in *Internal Control—Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on our evaluation under the framework in *Internal Control—Integrated Framework (2013)*, our management concluded that our internal control over financial reporting was effective as of December 31, 2022.

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<u>[**Table of Contents**](#ic34b9f2cdc6c4571bc486ff37be14e07_7)</u>

The effectiveness of our internal control over financial reporting as of December 31, 2022 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report, which appears on page F-2 of this report.

**Changes in Internal Controls**

There was no change to our internal control over financial reporting during the fourth quarter ended December 31, 2022 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

**Item 9B. Other Information**

As of the quarter ended December 31, 2022, all items required to be disclosed in a Current Report on Form 8-K were reported under Form 8-K.

**Entry Into a Material Definitive Agreement**

***Second Amended and Restated Agreement of Limited Partnership***

On February 15, 2023, we entered into the Second Amended and Restated Agreement of Limited Partnership of our Operating Partnership, dated as of February 15, 2023 (the "Amended Operating Partnership Agreement"), which, among other things, (i) clarifies certain provisions related to the LTIP units in our Operating Partnership, and (ii) added partnership representative provisions. The foregoing description of the Amended Operating Partnership Agreement does not purport to be complete and is qualified in its entirety by reference to the Amended Operating Partnership Agreement, a copy of which has been filed as Exhibit 10.1 to this report and is incorporated in this Item 9B, "Other Information" by reference.

**Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections**

Not Applicable.

**PART III.**

**Item 10. Directors, Executive Officers and Corporate Governance**

The information required by Item 10 will be included in the Proxy Statement to be filed relating to our 2023 Annual Meeting of Stockholders and is incorporated herein by reference.

**Item 11. Executive Compensation**

The information required by Item 11 will be included in the Proxy Statement to be filed relating to our 2023 Annual Meeting of Stockholders and is incorporated herein by reference.

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

The information required by Item 12 will be included in the Proxy Statement to be filed relating to our 2023 Annual Meeting of Stockholders and is incorporated herein by reference.

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

The information required by Item 13 will be included in the Proxy Statement to be filed relating to our 2023 Annual Meeting of Stockholders and is incorporated herein by reference.

**Item 14. Principal Accountant Fees and Services**

The information required by Item 14 will be included in the Proxy Statement to be filed relating to our 2023 Annual Meeting of Stockholders and is incorporated herein by reference.

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<u>[**Table of Contents**](#ic34b9f2cdc6c4571bc486ff37be14e07_7)</u>

**PART IV.**

**Item 15. Exhibits and Financial Statement Schedules** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Consolidated Financial Statements

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Financial Statement Schedules

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Exhibits

The following exhibits are filed as part of this report:

---

| | |
|:---|:---|
| **Exhibit Number** | **Description of Document** |
| 3.1 | <u>[Articles of Amendment and Restatement (including all articles of amendment and articles supplementary) (incorporated by reference to the Quarterly Report on Form 10-Q filed with the SEC on July 30, 2019)](http://www.sec.gov/Archives/edgar/data/0001479094/000147909419000018/stag-63019xex31.htm)</u> |
| 3.2 | <u>[Third Amended and Restated Bylaws (incorporated by reference to the Current Report on Form 8-K filed with the SEC on May 1, 2018)](http://www.sec.gov/Archives/edgar/data/1479094/000147909418000020/a32-thirdamendedandrestate.htm)</u> |
| 4.1 | <u>[Form of Common Stock Certificate (incorporated by reference to the Registration Statement on Form S-11/A (File No. 333-168368) filed with the SEC on September 24, 2010.)](http://www.sec.gov/Archives/edgar/data/1479094/000104746910008256/a2199949zex-4_1.htm)</u> |
| 4.2 | <u>[Description of the Registrant's Securities Registered Pursuant to Section 12 of the Exchange Act (incorporated by reference to the Annual Report on Form 10-K filed with the SEC on February 16, 2022)](http://www.sec.gov/Archives/edgar/data/1479094/000147909422000006/stag42xdescriptionofsecuri.htm)</u> |
| 10.1 | <u>[Second Amended and Restated Agreement of Limited Partnership, dated as of February 15, 2023](exhibit101-stagamendedandr.htm)</u> |
| 10.2 | <u>[STAG Industrial, Inc. 2011 Equity Incentive Plan, effective April 1, 2011 (incorporated by reference to the Registration Statement on Form S-11/A (File No. 333-168368) filed with the SEC on April 5, 2011)\*](http://www.sec.gov/Archives/edgar/data/1479094/000104746911003197/a2202325zex-10_2.htm)</u> |
| 10.3 | <u>[Amendment to the 2011 Equity Incentive Plan, dated as of May 6, 2013 (incorporated by reference to the Current Report on Form 8-K filed with the SEC on May 6, 2013)\*](http://www.sec.gov/Archives/edgar/data/1479094/000110465913037685/a13-11623_2ex10d1.htm)</u> |
| 10.4 | <u>[Second Amendment to the 2011 Equity Incentive Plan, dated as of February 20, 2015 (incorporated by reference to the Annual Report on Form 10-K filed with the SEC on February 23, 2015)\*](http://www.sec.gov/Archives/edgar/data/1479094/000155837015000135/stag-20141231ex106176512.htm)</u> |
| 10.5 | <u>[Amended and Restated STAG Industrial, Inc. 2011 Equity Incentive Plan, effective April 30, 2018 (incorporated by reference to the Current Report on Form 8-K filed with the SEC on May 1, 2018)\*](http://www.sec.gov/Archives/edgar/data/1479094/000147909418000020/a101-amendedandrestatedequ.htm)</u> |
| 10.6 | <u>[Form of LTIP Unit Agreement (incorporated by reference to the Registration Statement on Form S-11/A (File No. 333-168368) filed with the SEC on April 5, 2011)\*](http://www.sec.gov/Archives/edgar/data/1479094/000104746911003197/a2202325zex-10_3.htm)</u> |
| 10.7 | <u>[Form of Performance Award Agreement (incorporated by reference to the Quarterly Report on Form 10-Q filed with the SEC on May 3, 2016)\*](http://www.sec.gov/Archives/edgar/data/1479094/000147909416000011/stag-033116xex104.htm)</u> |
| 10.8 | <u>[STAG Industrial Inc. Employee Retirement Vesting Program, effective January 7, 2021 (incorporated by reference to the Current Report on Form 8-K filed with the SEC on January 13, 2021)\*](http://www.sec.gov/Archives/edgar/data/1479094/000147909421000002/stagindustrialincemployeer.htm)</u> |
| 10.9 | <u>[Amended and Restated Executive Employment Agreement with Benjamin S. Butcher, effective as of July 1, 2022 (incorporated by reference to the Current Report on Form 8-K filed with the SEC on July 6, 2022)\*](http://www.sec.gov/Archives/edgar/data/1479094/000110465922077472/tm2220424d1_ex10-2.htm)</u> |
| 10.10 | <u>[Amended and Restated Executive Employment Agreement with William R. Crooker, effective as of July 1, 2022 (incorporated by reference to the Current Report on Form 8-K filed with the SEC on July 6, 2022)\*](http://www.sec.gov/Archives/edgar/data/1479094/000110465922077472/tm2220424d1_ex10-1.htm)</u> |
| 10.11 | <u>[Executive Employment Agreement with Matts S. Pinard, dated January 10, 2022 (incorporated by reference to the Current Report on Form 8-K filed with the SEC on January 12, 2022)\*](http://www.sec.gov/Archives/edgar/data/1479094/000110465922003414/tm222578d1_ex10-1.htm)</u> |
| 10.12 | <u>[Executive Employment Agreement with Jeffrey M. Sullivan, dated October 27, 2014 (incorporated by reference to the Quarterly Report on Form 10-Q filed with the SEC on October 31, 2014)\*](http://www.sec.gov/Archives/edgar/data/1479094/000155837014000251/stag-20140930ex101e210f6.htm)</u> |
| 10.13 | <u>[Amended and Restated Executive Employment Agreement with Michael C. Chase, effective as of July 1, 2022 (incorporated by reference to the Current Report on Form 8-K filed with the SEC on July 6, 2022)\*](http://www.sec.gov/Archives/edgar/data/1479094/000110465922077472/tm2220424d1_ex10-3.htm)</u> |
| 10.14 | <u>[Form of Indemnification Agreement (incorporated by reference to the Registration Statement on Form S-11/A (File No. 333-168368) filed with the SEC on February 16, 2011)\*](http://www.sec.gov/Archives/edgar/data/1479094/000104746911000991/a2201873zex-10_9.htm)</u> |

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<u>[**Table of Contents**](#ic34b9f2cdc6c4571bc486ff37be14e07_7)</u>

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| | |
|:---|:---|
| **Exhibit Number** | **Description of Document** |
| 10.15 | <u>[Registration Rights Agreement, dated April 20, 2011 (incorporated by reference to the Current Report on Form 8-K filed with the SEC on April 21, 2011)](http://www.sec.gov/Archives/edgar/data/1479094/000110465911021696/a10-14619_12ex10d7.htm)</u> |
| 10.16 | **Unsecured Credit Facility:** <u>[Amended and Restated Credit Agreement, dated as of July 26, 2022 (incorporated by reference to the Current Report on Form 8-K filed with the SEC on July 29, 2022)](http://www.sec.gov/Archives/edgar/data/1479094/000110465922084206/tm2222119d1_ex10-1.htm)</u> |
| 10.17 | **Unsecured Term Loan A:** <u>[Third Amended and Restated Term Loan Agreement, dated as of September 1, 2022 (incorporated by reference to the Current Report on Form 8-K filed with the SEC on September 8, 2022)](http://www.sec.gov/Archives/edgar/data/1479094/000110465922098534/tm2225430d1_ex10-1.htm)</u> |
| 10.18 | **Unsecured Term Loan F:** <u>[Amended and Restated Term Loan Agreement, dated as of September 1, 2022 (incorporated by reference to the Current Report on Form 8-K filed with the SEC on September 8, 2022)](http://www.sec.gov/Archives/edgar/data/1479094/000110465922098534/tm2225430d1_ex10-2.htm)</u> |
| 10.19 | **Unsecured Term Loan G:** <u>[Amended and Restated Term Loan Agreement, dated as of September 1, 2022 (incorporated by reference to the Current Report on Form 8-K filed with the SEC on September 8, 2022)](http://www.sec.gov/Archives/edgar/data/1479094/000110465922098534/tm2225430d1_ex10-3.htm)</u> |
| 10.20 | **Unsecured Term Loan H:** <u>[Term Loan Agreement, dated as of July 26, 2022 (incorporated by reference to the Current Report on Form 8-K filed with the SEC on July 29, 2022)](http://www.sec.gov/Archives/edgar/data/1479094/000110465922084206/tm2222119d1_ex10-2.htm)</u> |
| 10.21 | **Unsecured Term Loan I:** <u>[Term Loan Agreement, dated as of July 26, 2022 (incorporated by reference to the Current Report on Form 8-K filed with the SEC on July 29, 2022)](http://www.sec.gov/Archives/edgar/data/1479094/000110465922084206/tm2222119d1_ex10-3.htm)</u> |
| 10.22 | **Series A Unsecured Notes, Series B Unsecured Notes:** <u>[Note Purchase Agreement, dated as of April 16, 2014 (incorporated by reference to the Current Report on Form 8-K filed with the SEC on April 22, 2014)](http://www.sec.gov/Archives/edgar/data/1479094/000110465914029167/a14-10889_1ex10d1.htm)</u> |
| 10.23 | **Series A Unsecured Notes, Series B Unsecured Notes:** <u>[First Amendment to Note Purchase Agreement, dated as of December 18, 2014 (incorporated by reference to the Current Report on Form 8-K filed with the SEC on December 19, 2014)](http://www.sec.gov/Archives/edgar/data/1479094/000110465914087988/a14-26525_1ex10d5.htm)</u> |
| 10.24 | **Series A Unsecured Notes, Series B Unsecured Notes:** <u>[Second Amendment to Note Purchase Agreement, dated as of December 1, 2015 (incorporated by reference to the Current Report on Form 8-K filed with the SEC on December 4, 2015)](http://www.sec.gov/Archives/edgar/data/1479094/000110465915083066/a15-24511_1ex10d2.htm)</u> |
| 10.25 | **Series A Unsecured Notes, Series B Unsecured Notes:** <u>[Third Amendment to Note Purchase Agreement, dated as of April 10, 2018 (incorporated by reference to the Current Report on Form 8-K filed with the SEC on April 13, 2018)](http://www.sec.gov/Archives/edgar/data/1479094/000147909418000013/exhibit102-thirdamendment.htm)</u> |
| 10.26 | **Series C Unsecured Notes, Series D Unsecured Notes, Series E Unsecured Notes:** <u>[Note Purchase Agreement, dated as of December 18, 2014 (incorporated by reference to the Current Report on Form 8-K filed with the SEC on December 19, 2014)](http://www.sec.gov/Archives/edgar/data/1479094/000110465914087988/a14-26525_1ex10d4.htm)</u> |
| 10.27 | **Series C Unsecured Notes, Series D Unsecured Notes, Series E Unsecured Notes:** <u>[First Amendment to Note Purchase Agreement, dated as of December 1, 2015 (incorporated by reference to the Current Report on Form 8-K filed with the SEC on December 4, 2015)](http://www.sec.gov/Archives/edgar/data/1479094/000110465915083066/a15-24511_1ex10d3.htm)</u> |
| 10.28 | **Series C Unsecured Notes, Series D Unsecured Notes, Series E Unsecured Notes:** <u>[Second Amendment to Note Purchase Agreement, dated as of April 10, 2018 (incorporated by reference to the Current Report on Form 8-K filed with the SEC on April 13, 2018)](http://www.sec.gov/Archives/edgar/data/1479094/000147909418000013/exhibit103-secondamendment.htm)</u> |
| 10.29 | **Series F Unsecured Notes:** <u>[Note Purchase Agreement, dated as of December 1, 2015 (incorporated by reference to the Current Report on Form 8-K filed with the SEC on December 4, 2015)](http://www.sec.gov/Archives/edgar/data/1479094/000110465915083066/a15-24511_1ex10d1.htm)</u> |
| 10.30 | **Series F Unsecured Notes:** <u>[First Amendment to Note Purchase Agreement, dated as of April 10, 2018 (incorporated by reference to the Current Report on Form 8-K filed with the SEC on April 13, 2018)](http://www.sec.gov/Archives/edgar/data/1479094/000147909418000013/exhibit104-firstamendment.htm)</u> |
| 10.31 | **Series G Unsecured Notes, Series H Unsecured Notes:** <u>[Note Purchase Agreement, dated as of April 10, 2018 (incorporated by reference to the Current Report on Form 8-K filed with the SEC on April 13, 2018)](http://www.sec.gov/Archives/edgar/data/1479094/000147909418000013/exhibit101-npa.htm)</u> |
| 10.32 | **Series I Unsecured Notes, Series J Unsecured Notes:** <u>[Note Purchase Agreement, dated as of July 8, 2021 (incorporated by reference to the Quarterly Report on Form 10-Q filed with the SEC on October 28, 2021)](http://www.sec.gov/Archives/edgar/data/0001479094/000147909421000027/ex101-npajuly2021.htm)</u> |
| 10.33 | **Series K Unsecured Notes:** <u>[Note Purchase Agreement, dated as of April 28, 2022 (incorporated by reference to the Quarterly Report on Form 10-Q filed with the SEC on May 3, 2022)](http://www.sec.gov/Archives/edgar/data/0001479094/000147909422000012/exhibit102-stagnotepurchas.htm)</u> |
| 21.1 | <u>[Subsidiaries of STAG Industrial, Inc.](q42022-ex21110k.htm)</u> |
| 23.1 | <u>[Consent of PricewaterhouseCoopers LLP](q42022-ex23110k.htm)</u> |
| 24.1 | <u>[Power of Attorney (included on signature page)](#ic34b9f2cdc6c4571bc486ff37be14e07_103)</u> |
| 31.1 | <u>[Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](q42022-ex31110k.htm)</u> |
| 31.2 | <u>[Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](q42022-ex31210k.htm)</u> |
| 32.1 | <u>[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](q42022-ex32110k.htm)</u> |

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<u>[**Table of Contents**](#ic34b9f2cdc6c4571bc486ff37be14e07_7)</u>

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| | |
|:---|:---|
| **Exhibit Number** | **Description of Document** |
| 101 | The following materials from STAG Industrial, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2022 formatted in Inline XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income, (vi) the Consolidated Statements of Equity, (v) the Consolidated Statements of Cash Flows, and (vi) related notes to these consolidated financial statements. |
| 104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101). |

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\*&nbsp;&nbsp;&nbsp;&nbsp;Represents management contract or compensatory plan or arrangement.

**Item 16. Form 10-K Summary**

None.

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<u>[**Table of Contents**](#ic34b9f2cdc6c4571bc486ff37be14e07_7)</u>

**SIGNATURES**

&nbsp;&nbsp;&nbsp;&nbsp;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.

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| | | |
|:---|:---|:---|
| | STAG INDUSTRIAL, INC. | STAG INDUSTRIAL, INC. |
| Dated: February 15, 2023 |  |  |
|  |  | /s/ William R. Crooker |
|  | By: | William R. Crooker<br>*President and Chief Executive Officer* |

---

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

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

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| | | |
|:---|:---|:---|
| **<u>Date</u>** | **<u>Signature</u>** | **<u>Title</u>** |
| February 15, 2023 | /s/ William R. Crooker | President and Chief Executive Officer<br>(principal executive officer) |
| February 15, 2023 | William R. Crooker | President and Chief Executive Officer<br>(principal executive officer) |
| February 15, 2023 | /s/ Benjamin S. Butcher | Executive Chair |
| February 15, 2023 | Benjamin S. Butcher | Executive Chair |
| February 15, 2023 | /s/ Jit Kee Chin | Director |
| February 15, 2023 | Jit Kee Chin | Director |
| February 15, 2023 | /s/ Virgis W. Colbert | Director |
| February 15, 2023 | Virgis W. Colbert | Director |
| February 15, 2023 | /s/ Michelle S. Dilley | Director |
| February 15, 2023 | Michelle S. Dilley | Director |
| February 15, 2023 | /s/ Jeffrey D. Furber | Director |
| February 15, 2023 | Jeffrey D. Furber | Director |
| February 15, 2023 | /s/ Larry T. Guillemette | Director |
| February 15, 2023 | Larry T. Guillemette | Director |
| February 15, 2023 | /s/ Francis X. Jacoby III | Director |
| February 15, 2023 | Francis X. Jacoby III | Director |
| February 15, 2023 | /s/ Christopher P. Marr | Director |
| February 15, 2023 | Christopher P. Marr | Director |
| February 15, 2023 | /s/ Hans S. Weger | Director |
| February 15, 2023 | Hans S. Weger | Director |
| February 15, 2023 | /s/ Matts S. Pinard | Chief Financial Officer, Executive Vice President and Treasurer (principal financial officer) |
| February 15, 2023 | Matts S. Pinard | Chief Financial Officer, Executive Vice President and Treasurer (principal financial officer) |
| February 15, 2023 | /s/ Jaclyn M. Paul | Chief Accounting Officer (principal accounting officer) |
| February 15, 2023 | Jaclyn M. Paul | Chief Accounting Officer (principal accounting officer) |

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<u>[**Table of Contents**](#ic34b9f2cdc6c4571bc486ff37be14e07_7)</u>

**STAG INDUSTRIAL, INC.** 

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

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| | |
|:---|:---|
| <u>[Report of Independent Registered Public Accounting Firm (PCAOB](#ic34b9f2cdc6c4571bc486ff37be14e07_109)</u><u>[ID](#ic34b9f2cdc6c4571bc486ff37be14e07_109) 238[)](#ic34b9f2cdc6c4571bc486ff37be14e07_109)</u> | <u>[2](#ic34b9f2cdc6c4571bc486ff37be14e07_109)</u> |
| <u>[Consolidated Balance Sheets as of December 31, 2022 and 2021](#ic34b9f2cdc6c4571bc486ff37be14e07_115)</u> | <u>[4](#ic34b9f2cdc6c4571bc486ff37be14e07_115)</u> |
| <u>[Consolidated Statements of Operations for the years ended December 31, 2022, 2021 and 2020](#ic34b9f2cdc6c4571bc486ff37be14e07_118)</u> | <u>[5](#ic34b9f2cdc6c4571bc486ff37be14e07_118)</u> |
| <u>[Consolidated Statements of Comprehensive Income for the years ended December 31, 2022, 2021 and 2020](#ic34b9f2cdc6c4571bc486ff37be14e07_121)</u> | <u>[6](#ic34b9f2cdc6c4571bc486ff37be14e07_121)</u> |
| <u>[Consolidated Statements of Equity for the years ended December 31, 2022, 2021 and 2020](#ic34b9f2cdc6c4571bc486ff37be14e07_124)</u> | <u>[7](#ic34b9f2cdc6c4571bc486ff37be14e07_124)</u> |
| <u>[Consolidated Statements of Cash Flows for the years ended December 31, 2022, 2021 and 2020](#ic34b9f2cdc6c4571bc486ff37be14e07_127)</u> | <u>[8](#ic34b9f2cdc6c4571bc486ff37be14e07_127)</u> |
| <u>[Notes to Consolidated Financial Statements](#ic34b9f2cdc6c4571bc486ff37be14e07_130)</u> | <u>[9](#ic34b9f2cdc6c4571bc486ff37be14e07_130)</u> |
| <u>[Financial Statement Schedule—Schedule III—Real Estate and Accumulated Depreciation as of December 31, 2022](#ic34b9f2cdc6c4571bc486ff37be14e07_184)</u> | <u>[37](#ic34b9f2cdc6c4571bc486ff37be14e07_184)</u> |

---

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<u>[**Table of Contents**](#ic34b9f2cdc6c4571bc486ff37be14e07_7)</u>

**Report of Independent Registered Public Accounting Firm** 

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

***Opinions on the Financial Statements and Internal Control over Financial Reporting***

We have audited the accompanying consolidated balance sheets of STAG Industrial, Inc. and its subsidiaries (the "Company") as of December 31, 2022 and 2021, and the related consolidated statements of operations, comprehensive income, equity and cash flows for each of the three years in the period ended December 31, 2022, including the related notes and financial statement schedule listed in the accompanying index (collectively referred to as the "consolidated financial statements"). We also have audited the Company's internal control over financial reporting as of December 31, 2022, based on criteria established in *Internal Control - Integrated Framework* (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2022 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on criteria established in *Internal Control - Integrated Framework* (2013) issued by the COSO.

***Basis for Opinions***

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management's Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company's consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

***Definition and Limitations of Internal Control over Financial Reporting***

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

------

<u>[**Table of Contents**](#ic34b9f2cdc6c4571bc486ff37be14e07_7)</u>

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

***Critical Audit Matters***

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

*Purchase Price Accounting*

As described in Notes 2 and 3 to the consolidated financial statements, during 2022, the Company completed 26 property acquisitions for consideration of approximately $472.6 million, of which approximately $39.3 million of land, $382.4 million of buildings and improvements, $49.2 million of net leasing intangibles, and $1.7 million of net other assets and liabilities were recorded. Management allocates the purchase price of properties based upon the fair value of the assets acquired and liabilities assumed, which generally consist of land, buildings, tenant improvements, mortgage debt assumed, and deferred leasing intangibles, which includes in-place leases, above market and below market leases, and tenant relationships. The process for determining the allocation to these components requires estimates and assumptions, including rental rates, discount rates, exit capitalization rates, and land value per square foot.

The principal considerations for our determination that performing procedures relating to purchase price accounting is a critical audit matter are (i) there was significant judgment by management when developing the fair value measurement of the tangible and intangible assets acquired and liabilities assumed, which resulted in a high degree of auditor judgment and subjectivity in performing procedures relating to these estimates, (ii) significant audit effort was necessary in evaluating the significant assumptions, including rental rates, discount rates, exit capitalization rates, and land value per square foot, (iii) significant auditor judgment was necessary in evaluating audit evidence, and (iv) the audit effort included the involvement of professionals with specialized skill and knowledge to assist in evaluating the audit evidence obtained.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to purchase price accounting, including controls over the allocation of the purchase price to the assets acquired and liabilities assumed. These procedures also included, among others, testing management's process for estimating the fair value of assets acquired and liabilities assumed by (i) reading the purchase agreements and (ii) evaluating the appropriateness of methods and, for a sample of acquisitions, the reasonableness of significant assumptions used by management in developing the fair value measurement including rental rates, discount rates, exit capitalization rates, and land value per square foot. Evaluating these assumptions involved evaluating whether the assumptions used were reasonable considering past performance of the tangible and intangible assets acquired and liabilities assumed, consistency with external market and industry data, and considering whether the assumptions were consistent with evidence obtained in other areas of the audit. Procedures were also performed to test the completeness and accuracy of data provided by management. For certain acquisitions, professionals with specialized skill and knowledge were used to assist in evaluating the appropriateness of management's methods and evaluating the reasonableness of the assumptions related to the rental rates, discount rates, exit capitalization rates, and land value per square foot.

/s/PricewaterhouseCoopers LLP

Boston, Massachusetts

February 15, 2023

We have served as the Company's or its predecessor's auditor since 2009. 

------

<u>[**Table of Contents**](#ic34b9f2cdc6c4571bc486ff37be14e07_7)</u>

**STAG Industrial, Inc.**

**Consolidated Balance Sheets**

**(in thousands, except share data)**

---

| | | |
|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2021** |
| **Assets** | | |
| Rental Property: |  |  |
| &nbsp;&nbsp;&nbsp;Land | $647098 | $617297 |
| &nbsp;&nbsp;Buildings and improvements, net of accumulated depreciation of $763,128 and $611,867, respectively | 4706745 | 4435743 |
| &nbsp;&nbsp;Deferred leasing intangibles, net of accumulated amortization of $328,848 and $282,038, respectively | 508935 | 567658 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total rental property, net | 5862778 | 5620698 |
| Cash and cash equivalents | 25884 | 18981 |
| Restricted cash | 905 | 4215 |
| Tenant accounts receivable | 115509 | 93600 |
| Prepaid expenses and other assets | 71733 | 60953 |
| Interest rate swaps | 72223 | 5220 |
| Operating lease right-of-use assets | 31313 | 29582 |
| Assets held for sale, net | 4643 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $**6184988** | $**5833249** |
| **Liabilities and Equity** |  |  |
| Liabilities: |  |  |
| Unsecured credit facility | $175000 | $296000 |
| Unsecured term loans, net | 1020440 | 970577 |
| Unsecured notes, net | 1295442 | 896941 |
| Mortgage notes, net | 7898 | 54744 |
| Accounts payable, accrued expenses and other liabilities | 97371 | 76475 |
| Interest rate swaps |  | 17052 |
| Tenant prepaid rent and security deposits | 40847 | 37138 |
| Dividends and distributions payable | 22282 | 21906 |
| Deferred leasing intangibles, net of accumulated amortization of $24,593 and $21,136, respectively | 32427 | 35721 |
| Operating lease liabilities | 35100 | 33108 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | **2726807** | **2439662** |
| Commitments and contingencies (Note 11) |  |  |
| Equity: |  |  |
| Preferred stock, par value $0.01 per share, 20,000,000 shares authorized at December 31, 2022 and December 31, 2021; none issued or outstanding |  |  |
| Common stock, par value $0.01 per share, 300,000,000 shares authorized at December 31, 2022 and December 31, 2021, 179,248,980 and 177,769,342 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively | 1792 | 1777 |
| Additional paid-in capital | 4188677 | 4130038 |
| Cumulative dividends in excess of earnings | (876145) | (792332) |
| Accumulated other comprehensive income (loss) | 70500 | (11783) |
| Total stockholders' equity | 3384824 | 3327700 |
| Noncontrolling interest | 73357 | 65887 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total equity** | **3458181** | **3393587** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and equity** | $**6184988** | $**5833249** |

---

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

------

<u>[**Table of Contents**](#ic34b9f2cdc6c4571bc486ff37be14e07_7)</u>

**STAG Industrial, Inc.**

**Consolidated Statements of Operations**

**(in thousands, except share data)**

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| | **2022** | **2021** | **2020** |
| **Revenue** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rental income | $654377 | $559432 | $482825 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income | 2968 | 2727 | 586 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 657345 | 562159 | 483411 |
| **Expenses** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property | 125701 | 107986 | 89359 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 46958 | 48629 | 40072 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 275040 | 238699 | 214738 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on impairments | 1783 |  | 5577 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other expenses | 4363 | 2878 | 2029 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 453845 | 398192 | 351775 |
| **Other income (expense)** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and other income | 103 | 121 | 446 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (78018) | (63484) | (62343) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt extinguishment and modification expenses | (838) | (2152) | (834) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on involuntary conversion |  |  | 2157 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on the sales of rental property, net | 57487 | 97980 | 135733 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | (21266) | 32465 | 75159 |
| **Net income** | $**182234** | $**196432** | $**206795** |
| Less: income attributable to noncontrolling interest after preferred stock dividends | 3908 | 4098 | 4648 |
| **Net income attributable to STAG Industrial, Inc.** | $**178326** | $**192334** | $**202147** |
| Less: preferred stock dividends |  | 1289 | 5156 |
| Less: redemption of preferred stock |  | 2582 |  |
| Less: amount allocated to participating securities | 237 | 288 | 271 |
| **Net income attributable to common stockholders** | $**178089** | $**188175** | $**196720** |
| Weighted average common shares outstanding — basic | 178753 | 163442 | 148791 |
| Weighted average common shares outstanding — diluted | 178940 | 164090 | 149215 |
| **Net income per share — basic and diluted** |  |  |  |
| Net income per share attributable to common stockholders — basic | $1.00 | $1.15 | $1.32 |
| Net income per share attributable to common stockholders — diluted | $1.00 | $1.15 | $1.32 |

---

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

------

<u>[**Table of Contents**](#ic34b9f2cdc6c4571bc486ff37be14e07_7)</u>

**STAG Industrial, Inc.**

**Consolidated Statements of Comprehensive Income** 

**(in thousands)**

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| | **2022** | **2021** | **2020** |
| **Net income** | $**182234** | $**196432** | $**206795** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) on interest rate swaps | 84086 | 28856 | (22109) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss) | 84086 | 28856 | (22109) |
| **Comprehensive income** | **266320** | **225288** | **184686** |
| Income attributable to noncontrolling interest after preferred stock dividends | (3908) | (4098) | (4648) |
| Other comprehensive (income) loss attributable to noncontrolling interest | (1803) | (614) | 510 |
| **Comprehensive income attributable to STAG Industrial, Inc.** | $**260609** | $**220576** | $**180548** |

---

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

------

<u>[**Table of Contents**](#ic34b9f2cdc6c4571bc486ff37be14e07_7)</u>

**STAG Industrial, Inc.**

**Consolidated Statements of Equity**

**(in thousands, except share data)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Preferred Stock** | **Common Stock** | **Common Stock** | **Additional Paid-in Capital** | **Cumulative Dividends in Excess of Earnings** | **Accumulated Other Comprehensive Income (Loss)** | **Total Stockholders' Equity** | **Noncontrolling Interest - Unit Holders in Operating Partnership** | **Total Equity** |
| | **Preferred Stock** | **Shares** | **Par Amount** | **Additional Paid-in Capital** | **Cumulative Dividends in Excess of Earnings** | **Accumulated Other Comprehensive Income (Loss)** | **Total Stockholders' Equity** | **Noncontrolling Interest - Unit Holders in Operating Partnership** | **Total Equity** |
| **Balance, December 31, 2019** | $**75000** | **142815593** | $**1428** | $**2970553** | $**(723027)** | $**(18426)** | $**2305528** | $**58363** | $**2363891** |
| &nbsp;&nbsp;&nbsp;Proceeds from sales of common stock, net |  | 14580577 | 146 | 438338 |  |  | 438484 |  | 438484 |
| &nbsp;&nbsp;Dividends and distributions, net ($1.44 per share/unit) |  |  |  |  | (220801) |  | (220801) | (5395) | (226196) |
| &nbsp;&nbsp;&nbsp;Non-cash compensation activity, net |  | 83233 | 1 | 5019 | (390) |  | 4630 | 5557 | 10187 |
| &nbsp;&nbsp;&nbsp;Redemption of common units to common stock |  | 730420 | 7 | 11540 |  |  | 11547 | (11547) |  |
| &nbsp;&nbsp;&nbsp;Rebalancing of noncontrolling interest |  |  |  | (3729) |  |  | (3729) | 3729 |  |
| &nbsp;&nbsp;&nbsp;Other comprehensive loss |  |  |  |  |  | (21599) | (21599) | (510) | (22109) |
| &nbsp;&nbsp;&nbsp;Net income |  |  |  |  | 202147 |  | 202147 | 4648 | 206795 |
| **Balance, December 31, 2020** | $**75000** | **158209823** | $**1582** | $**3421721** | $**(742071)** | $**(40025)** | $**2716207** | $**54845** | $**2771052** |
| &nbsp;&nbsp;&nbsp;Proceeds from sales of common stock, net |  | 19238685 | 192 | 706680 |  |  | 706872 |  | 706872 |
| &nbsp;&nbsp;&nbsp;Redemption of preferred stock | (75000) |  |  | 2573 | (2582) |  | (75009) |  | (75009) |
| &nbsp;&nbsp;Dividends and distributions, net ($1.45 per share/unit) |  |  |  |  | (239859) |  | (239859) | (8293) | (248152) |
| &nbsp;&nbsp;&nbsp;Non-cash compensation activity, net |  | 149516 | 1 | 3024 | (154) |  | 2871 | 10665 | 13536 |
| &nbsp;&nbsp;&nbsp;Redemption of common units to common stock |  | 171318 | 2 | 2852 |  |  | 2854 | (2854) |  |
| &nbsp;&nbsp;&nbsp;Rebalancing of noncontrolling interest |  |  |  | (6812) |  |  | (6812) | 6812 |  |
| &nbsp;&nbsp;&nbsp;Other comprehensive income |  |  |  |  |  | 28242 | 28242 | 614 | 28856 |
| &nbsp;&nbsp;&nbsp;Net income |  |  |  |  | 192334 |  | 192334 | 4098 | 196432 |
| **Balance, December 31, 2021** | $**—** | **177769342** | $**1777** | $**4130038** | $**(792332)** | $**(11783)** | $**3327700** | $**65887** | $**3393587** |
| &nbsp;&nbsp;&nbsp;Proceeds from sales of common stock, net |  | 1328335 | 13 | 54931 |  |  | 54944 |  | 54944 |
| &nbsp;&nbsp;Dividends and distributions, net ($1.46 per share/unit) |  |  |  |  | (261359) |  | (261359) | (5832) | (267191) |
| &nbsp;&nbsp;&nbsp;Non-cash compensation activity, net |  | 52809 | 1 | 2832 | (780) |  | 2053 | 8468 | 10521 |
| &nbsp;&nbsp;&nbsp;Redemption of common units to common stock |  | 98494 | 1 | 1856 |  |  | 1857 | (1857) |  |
| &nbsp;&nbsp;&nbsp;Rebalancing of noncontrolling interest |  |  |  | (980) |  |  | (980) | 980 |  |
| &nbsp;&nbsp;&nbsp;Other comprehensive income |  |  |  |  |  | 82283 | 82283 | 1803 | 84086 |
| &nbsp;&nbsp;&nbsp;Net income |  |  |  |  | 178326 |  | 178326 | 3908 | 182234 |
| **Balance, December 31, 2022** | $**—** | **179248980** | $**1792** | $**4188677** | $**(876145)** | $**70500** | $**3384824** | $**73357** | $**3458181** |

---

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

------

<u>[**Table of Contents**](#ic34b9f2cdc6c4571bc486ff37be14e07_7)</u>

**STAG Industrial, Inc.**

**Consolidated Statements of Cash Flows**

**(in thousands)**

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| | **2022** | **2021** | **2020** |
| **Cash flows from operating activities:** |  |  |  |
| Net income | $**182234** | $**196432** | $**206795** |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 275040 | 238699 | 214738 |
| &nbsp;&nbsp;&nbsp;Loss on impairments | 1783 |  | 5577 |
| &nbsp;&nbsp;&nbsp;Gain on involuntary conversion |  |  | (2157) |
| &nbsp;&nbsp;&nbsp;Non-cash portion of interest expense | 3747 | 2931 | 2922 |
| &nbsp;&nbsp;&nbsp;Amortization of above and below market leases, net | (352) | 2051 | 4341 |
| &nbsp;&nbsp;&nbsp;Straight-line rent adjustments, net | (17610) | (17516) | (12074) |
| &nbsp;&nbsp;&nbsp;Debt extinguishment and modification expenses | 21 | 249 | 834 |
| &nbsp;&nbsp;&nbsp;Gain on the sales of rental property, net | (57487) | (97980) | (135733) |
| &nbsp;&nbsp;&nbsp;Non-cash compensation expense | 12068 | 14955 | 11681 |
| &nbsp;&nbsp;&nbsp;Change in assets and liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Tenant accounts receivable | (6438) | (36) | (4482) |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (21870) | (18664) | (11528) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable, accrued expenses and other liabilities | 13531 | 6763 | 7157 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tenant prepaid rent and security deposits | 3264 | 8270 | 5851 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total adjustments | 205697 | 139722 | 87127 |
| &nbsp;&nbsp;&nbsp;**Net cash provided by operating activities** | **387931** | **336154** | **293922** |
| **Cash flows from investing activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Acquisitions of land and buildings and improvements | (421784) | (1211023) | (661961) |
| &nbsp;&nbsp;&nbsp;Additions of land and buildings and improvements | (111653) | (39503) | (55741) |
| &nbsp;&nbsp;&nbsp;Acquisitions of other assets | (2134) | (1004) | (450) |
| &nbsp;&nbsp;&nbsp;Acquisitions of operating lease right-of-use assets | (3541) | (5627) | (3984) |
| &nbsp;&nbsp;&nbsp;Proceeds from sales of rental property, net | 135348 | 187972 | 273560 |
| &nbsp;&nbsp;&nbsp;Proceeds from involuntary conversion |  |  | 782 |
| &nbsp;&nbsp;&nbsp;Acquisitions of tenant prepaid rent | 445 | 1024 |  |
| &nbsp;&nbsp;&nbsp;Acquisition deposits, net | 1428 | (3131) | 27 |
| &nbsp;&nbsp;&nbsp;Acquisitions of deferred leasing intangibles | (49174) | (154755) | (110840) |
| &nbsp;&nbsp;&nbsp;Acquisitions of operating lease liabilities | 3541 | 5627 | 3984 |
| &nbsp;&nbsp;&nbsp;**Net cash used in investing activities** | **(447524)** | **(1220420)** | **(554623)** |
| **Cash flows from financing activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from unsecured credit facility | 1288000 | 2665000 | 914000 |
| &nbsp;&nbsp;&nbsp;Repayment of unsecured credit facility | (1409000) | (2476000) | (953000) |
| &nbsp;&nbsp;&nbsp;Proceeds from unsecured term loans | 375000 | 1125000 | 400000 |
| &nbsp;&nbsp;&nbsp;Repayment of unsecured term loans | (325000) | (1125000) | (300000) |
| &nbsp;&nbsp;&nbsp;Proceeds from unsecured notes | 400000 | 325000 |  |
| &nbsp;&nbsp;&nbsp;Repayment of mortgage notes | (46943) | (2225) | (2983) |
| &nbsp;&nbsp;&nbsp;Redemption of preferred stock |  | (75000) |  |
| &nbsp;&nbsp;&nbsp;Payment of loan fees and costs | (5211) | (9579) | (1129) |
| &nbsp;&nbsp;&nbsp;Payment of defeasance fees and other costs |  |  | (425) |
| &nbsp;&nbsp;&nbsp;Dividends and distributions | (266817) | (245722) | (224283) |
| &nbsp;&nbsp;&nbsp;Proceeds from sales of common stock, net | 54753 | 706991 | 438499 |
| &nbsp;&nbsp;&nbsp;Repurchase and retirement of share-based compensation | (1596) | (1342) | (1503) |
| &nbsp;&nbsp;&nbsp;**Net cash provided by financing activities** | **63186** | **887123** | **269176** |
| Increase in cash and cash equivalents and restricted cash | 3593 | 2857 | 8475 |
| Cash and cash equivalents and restricted cash—beginning of period | 23196 | 20339 | 11864 |
| **Cash and cash equivalents and restricted cash—end of period** | $**26789** | $**23196** | $**20339** |
| **Supplemental disclosure:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for interest, net of capitalized interest | $72740 | $58392 | $58704 |
| **Supplemental schedule of non-cash investing and financing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Additions of land and buildings and improvements | $(2674) | $(465) | $(674) |
| &nbsp;&nbsp;&nbsp;Transfer of other assets to building and other capital improvements | $2674 | $465 | $674 |
| &nbsp;&nbsp;&nbsp;Acquisitions of land and buildings and improvements | $— | $(5990) | $(2202) |
| &nbsp;&nbsp;&nbsp;Acquisitions of deferred leasing intangibles | $— | $(948) | $(362) |
| &nbsp;&nbsp;&nbsp;Change in additions of land, building, and improvements included in accounts payable, accrued expenses and other liabilities | $(7897) | $(1285) | $(3714) |
| &nbsp;&nbsp;&nbsp;Additions to building and other capital improvements from non-cash compensation | $(62) | $(9) | $(25) |
| &nbsp;&nbsp;&nbsp;Assumption of mortgage notes | $— | $5103 | $— |
| &nbsp;&nbsp;&nbsp;Fair market value adjustment to mortgage notes acquired | $— | $(161) | $— |
| &nbsp;&nbsp;&nbsp;Change in loan fees, costs, and offering costs included in accounts payable, accrued expenses and other liabilities | $192 | $930 | $(1065) |
| &nbsp;&nbsp;&nbsp;Dividends and distributions accrued | $22282 | $21906 | $19379 |

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

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<u>[**Table of Contents**](#ic34b9f2cdc6c4571bc486ff37be14e07_7)</u>

**STAG Industrial, Inc.**

**Notes to Consolidated Financial Statements**

**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 "Code"). The Company is structured as an umbrella partnership REIT, commonly called an UPREIT, and owns all of its properties 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 December 31, 2022 and 2021, the Company owned a 97.9% and 98.1%, respectively, of the common units of the limited partnership interests in the Operating Partnership. The Company is the sole member of the general partner of the Operating Partnership. As used herein, the "Company" refers to STAG Industrial, Inc. and its consolidated subsidiaries, including the Operating Partnership, except where context otherwise requires.

As of December 31, 2022, the Company owned 562 industrial buildings in 41 states with approximately 111.7 million rentable square feet (square feet unaudited herein and throughout the Notes), consisting of 487 warehouse/distribution buildings, 74 light manufacturing buildings, and 1 flex/office building.

**2. Summary of Significant Accounting Policies**

***Basis of Presentation***

The Company's consolidated financial statements include the accounts of the Company, the Operating Partnership, and their consolidated subsidiaries. Interests in the Operating Partnership not owned by the Company are referred to as "Noncontrolling Common Units." These Noncontrolling Common Units are held by other limited partners in the form of common units ("Other Common Units") and long-term incentive plan units ("LTIP units") issued pursuant to the STAG Industrial, Inc. 2011 Equity Incentive Plan, as amended and restated (the "2011 Plan"). All significant intercompany balances and transactions have been eliminated in the consolidation of entities. The financial statements of the Company are presented on a consolidated basis for all periods presented.

***New Accounting Standards***

*New Accounting Standards Adopted*

In December 2022, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2022-06, *Deferral of the Sunset Date of Topic 848* ("ASU 2022-06") which defers the sunset date of Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform to December 31, 2024. ASU 2022-06 is effective immediately for all companies. ASU 2022-06 had no impact on the Company's consolidated financial statements for the year ended December 31, 2022.

***Use of Estimates***

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

***Rental Property and Deferred Leasing Intangibles***

Rental property is carried at cost less accumulated depreciation and amortization. Expenditures for maintenance and repairs are expensed as incurred. Significant renovations and betterments that extend the economic useful lives of assets are capitalized.

The Company capitalizes costs directly and indirectly related to the development, pre-development, redevelopment, or improvement of rental property. Real estate taxes, compensation costs of development personnel, insurance, interest, and other directly related costs during construction periods are capitalized as incurred, with depreciation commencing on the date the property is substantially completed. Such costs begin to be capitalized to the development projects from the point the Company

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is undergoing the necessary activities to get the development project ready for its intended use and cease when the development projects are substantially completed and held available for occupancy. Interest is capitalized based on actual capital expenditures from the period when development or redevelopment commences until the asset is ready for its intended use, at the weighted average borrowing rate of the Company's unsecured indebtedness during the period.

For properties classified as held for sale, the Company ceases depreciating and amortizing the rental property and values the rental property at the lower of depreciated and amortized cost or fair value less costs to dispose. The Company presents those properties classified as held for sale with any qualifying assets and liabilities associated with those properties as held for sale in the accompanying Consolidated Balance Sheets.

Using information available at the time of acquisition, the Company allocates the purchase price of properties acquired based upon the fair value of the assets acquired and liabilities assumed, which generally consist of land, buildings, tenant improvements, mortgage debt assumed, and deferred leasing intangibles, which includes in-place leases, above market and below market leases, and tenant relationships. The process for determining the allocation to these components requires estimates and assumptions, including rental rates, discount rates and exit capitalization rates, and land value per square foot, as well as available market information, and is therefore subject to subjective analysis and uncertainty. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. The portion of the purchase price that is allocated to above and below market leases is valued based on the present value of the difference between prevailing market rates and the in-place rates measured over a period equal to the remaining term of the lease term plus the term of any bargain renewal options. The purchase price is further allocated to in-place lease values and tenant relationships based on the Company's evaluation of the specific characteristics of each tenant's lease and its overall relationship with the respective tenant.

The above and below market lease values are amortized into rental income over the remaining lease term. The value of in-place lease intangibles and tenant relationships are amortized over the remaining lease term (and expected renewal period of the respective lease for tenant relationships) as increases to depreciation and amortization expense. The remaining lease terms are adjusted for bargain renewal options or assumed exercises of early termination options, as applicable. If a tenant subsequently terminates its lease, any unamortized portion of above and below market leases is accelerated into rental income and the in-place lease value and tenant relationships are accelerated into depreciation and amortization expense over the shortened lease term.

The purchase price allocated to deferred leasing intangible assets are included in rental property, net on the accompanying Consolidated Balance Sheets, and the purchase price allocated to deferred leasing intangible liabilities are included in deferred leasing intangibles, net on the accompanying Consolidated Balance Sheets under the liabilities section.

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

The Company evaluates the carrying value of all tangible and intangible rental property assets and deferred leasing intangible liabilities (collectively, the "property") held for use for possible impairment when an event or change in circumstance has occurred that indicates their carrying value may not be recoverable. The evaluation includes estimating and reviewing anticipated future undiscounted cash flows to be derived from the property. If such cash flows are less than the property's carrying value, an impairment charge is recognized to the extent by which the property's carrying value exceeds the estimated fair value. Estimating future cash flows is highly subjective and is based in part on assumptions regarding anticipated hold period, future occupancy, rental rates, capital requirements, and exit capitalization rates that could differ from actual results. The discount rate used to present value the cash flows for determining fair value is also subjective.

Depreciation expense is computed using the straight-line method based on the following estimated useful lives.

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| | |
|:---|:---|
| **Description** | **Estimated Useful Life** |
| Building | 40 Years |
| Building and land improvements (maximum) | 20 Years |
| Tenant improvements | Shorter of useful life or terms of related lease |

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Fully depreciated or amortized tenant improvements, deferred leasing intangible assets, or deferred leasing intangible liabilities and the associated accumulated depreciation or amortization are written-off. The Company wrote-off fully depreciated or

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amortized tenant improvements, deferred leasing intangible assets, and deferred leasing intangible liabilities of approximately $3.4 million, $53.8 million, $4.9 million, respectively, for the year ended December 31, 2022 and approximately $7.5 million, $72.9 million, $2.4 million, respectively, for the year ended December 31, 2021.

***Leases***

For leases in which the Company is the lessee, the Company recognizes a right-of-use asset and corresponding lease liability on the accompanying Consolidated Balance Sheets equal to the present value of the fixed lease payments. In determining the operating right-of-use asset and lease liability for the Company's operating leases, the Company estimates an appropriate incremental borrowing rate on a fully-collateralized basis for the terms of the leases. The Company utilizes a market-based approach to estimate the incremental borrowing rate for each individual lease. Additionally, since the terms of the Company's ground leases are significantly longer than the terms of borrowings available to the Company on a fully-collateralized basis, the estimate of this rate requires significant judgment, and considers factors such as yields on outstanding public debt and other market based pricing on longer duration financing instruments.

***Cash and Cash Equivalents***

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

***Restricted Cash***

Restricted cash may include tenant security deposits, cash held in escrow for real estate taxes and capital improvements as required in various mortgage note agreements, and cash held by the Company's transfer agent for preferred stock dividends, if any, that are distributed subsequent to period end. Restricted cash may also include cash held by qualified intermediaries to facilitate a like-kind exchange of real estate under Section 1031 of the Code.

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.

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| | | |
|:---|:---|:---|
| **Reconciliation of cash and cash equivalents and restricted cash (in thousands)** | **December 31, 2022** | **December 31, 2021** |
| Cash and cash equivalents | $25884 | $18981 |
| Restricted cash | 905 | 4215 |
| &nbsp;&nbsp;&nbsp;**Total cash and cash equivalents and restricted cash** | $**26789** | $**23196** |

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***Deferred Costs***

Deferred financing fees and debt issuance costs include costs incurred in obtaining debt that are capitalized and are presented as a direct deduction from the carrying amount of the associated debt liability that is not a line-of-credit arrangement on the accompanying Consolidated Balance Sheets. Deferred financing fees and debt issuance costs related to line-of-credit arrangements are presented as an asset in prepaid expenses and other assets on the accompanying Consolidated Balance Sheets. The deferred financing fees and debt issuance costs are amortized through interest expense over the life of the respective loans on a basis which approximates the effective interest method. Any unamortized amounts upon early repayment of debt are written off in the period of repayment as a loss on extinguishment of debt. Fully amortized deferred financing fees and debt issuance costs are written off upon maturity of the underlying debt.

Leasing commissions include commissions and other direct and incremental costs incurred to obtain new tenant leases as well as to renew existing tenant leases, and are presented in prepaid expenses and other assets on the accompanying Consolidated Balance Sheets. Leasing commissions are capitalized and amortized over the terms of the related leases (and bargain renewal terms or assumed exercise of early termination options) using the straight-line method. If a lease terminates prior to the expiration of its initial term, any unamortized costs related to the lease are accelerated into amortization expense. Changes in leasing commissions are presented in the cash flows from operating activities section of the accompanying Consolidated Statements of Cash Flows.

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***Goodwill***

The excess of the cost of an acquired business over the net of the amounts assigned to assets acquired (including identified intangible assets) and liabilities assumed is recorded as goodwill. Goodwill of the Company of approximately $4.9 million represents amounts allocated to the assembled workforce from the acquired management company, and is presented in prepaid expenses and other assets on the accompanying Consolidated Balance Sheets. The Company's goodwill has an indeterminate life and is not amortized, but is tested for impairment on an annual basis at December 31, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company takes a qualitative approach to consider whether an impairment of goodwill exists prior to quantitatively determining the fair value of the reporting unit in step one of the impairment test. The Company has recorded no impairments to goodwill through December 31, 2022.

***Use of Derivative Financial Instruments***

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

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

***Fair Value of Financial Instruments***

Financial instruments include cash and cash equivalents, restricted cash, tenant accounts receivable, interest rate swaps, accounts payable, accrued expenses, unsecured credit facility, unsecured term loans, unsecured notes, and mortgage notes. See Note 4 for the fair value of the Company's indebtedness. See Note 5 for the fair value of the Company's interest rate swaps.

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

***Offering Costs***

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

***Dividends***

Earnings and profits, which determine the taxability of dividends to stockholders, will differ from income reported for financial reporting purposes due to the differences for federal income tax purposes in the treatment of gains on the sale of real property, revenue and expense recognition, and in the estimated useful lives and basis used to compute depreciation. In addition, the Company's distributions may include a return of capital. To the extent that the Company makes distributions in excess of its

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current and accumulated earnings and profits, such distributions would generally be considered a return of capital for federal income tax purposes to the extent of the holder's adjusted tax basis in its shares. A return of capital may not be taxable. A return of capital has the effect of reducing the holder's adjusted tax basis in its investment, which may or may not be taxable to the holder.

The Company paid dividends to holders of the 6.875% Series C Cumulative Redeemable Preferred Stock, par value $0.01 per share ("Series C Preferred Stock"), of approximately $1.3 million ($0.429688 per share) during the year ended December 31, 2021, of which $0.400294 per share was treated as ordinary income for tax purposes, $0.022149 per share was treated as unrecaptured section 1250 capital gain for tax purposes, and $0.007245 per share was treated as other capital gain for income tax purposes. The Company paid dividends to the holders of the Series C Preferred Stock of approximately $5.2 million ($1.71875 per share) during the year ended December 31, 2020, of which $1.349944 per share was treated as ordinary income for tax purposes, $0.100392 per share was treated as unrecaptured section 1250 capital gain for tax purposes, and $0.268414 per share was treated as other capital gain for income tax purposes.

The following table summarizes the tax treatment of dividends per shares of common stock for federal income tax purposes.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| | **2022** | **2022** | **2021** | **2021** | **2020** | **2020** |
|<br>**Federal Income Tax Treatment of Dividends per Common Share** | **Per Share** | **%** | **Per Share** | **%** | **Per Share** | **%** |
| Ordinary income | $1.172486 | 80.4% | $1.119899 | 81.3% | $1.186648 | 78.5% |
| Return of capital | 0.165158 | 11.3% | 0.175355 | 12.7% |  | —% |
| Unrecaptured section 1250 capital gain | 0.014248 | 1.0% | 0.061970 | 4.5% | 0.088246 | 5.9% |
| Other capital gain | 0.107278 | 7.3% | 0.020269 | 1.5% | 0.235943 | 15.6% |
| **Total** <sup>(1)</sup> | $**1.459170** | **100.0%** | $**1.377493** | **100.0%** | $**1.510837** | **100.0%** |

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(1)The December 2020 monthly common stock dividend of $0.12 per share was partially included in the stockholder's 2020 tax year in the amount of $0.07167 per share, and the remainder was included in the stockholder's 2021 tax year. The December 2021 monthly common stock dividend of $0.120833 per share was included in the stockholder's 2022 tax year. The December 2022 monthly common stock dividend of 0.121667 per share will be included in the stockholder's 2023 tax year.

***Revenue Recognition***

All current leases are classified as operating leases and rental income is recognized on a straight-line basis over the term of the lease (and expected bargain renewal terms or assumed exercise of early termination options) when collectability is reasonably assured. Differences between rental income earned and amounts due under the lease are charged or credited, as applicable, to accrued rental income.

The Company determined that for all leases where the Company is the lessor, that the timing and pattern of transfer of the non-lease components and associated lease components are the same, and that the lease components, if accounted for separately, would be classified as an operating lease. Accordingly, the Company has made an accounting policy election to recognize the combined component in accordance with Accounting Standards Codification Topic 842 as rental income on the accompanying Consolidated Statements of Operations.

Rental income recognition commences when the tenant takes possession of or controls the physical use of the leased space and the leased space is substantially complete and ready for its intended use. In order to determine whether the leased space is substantially complete and ready for its intended use, the Company determines whether the Company or the tenant own the tenant improvements. When it is determined that the Company is the owner of the tenant improvements, rental income recognition begins when the tenant takes possession of or controls the physical use of the finished space, which is generally when the Company owned tenant improvements are completed. In instances when it is determined that the tenant is the owner of tenant improvements, rental income recognition begins when the tenant takes possession of or controls the physical use of the leased space.

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

When the Company is the owner of tenant improvements or other capital items, the cost to construct the tenant improvements or other capital items, including costs paid for or reimbursed by the tenants, is recorded as capital assets. For these tenant

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improvements or other capital items, the amount funded by or reimbursed by the tenants are recorded as deferred revenue, which is amortized on a straight-line basis as income over the shorter of the useful life of the capital asset or the term of the related lease.

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

***Gain on the Sales of Rental Property, net***

The timing of the derecognition of a rental property and the corresponding recognition of gain on the sales of rental property, net is measured by various criteria related to the terms of the sale transaction, and if the Company has lost control of the property and the acquirer has gained control of the property after the transaction. If the derecognition criteria is met, the full gain is recognized.

***Incentive and Equity-Based Employee Compensation Plans***

The Company grants equity-based compensation awards to its employees and directors in the form of restricted shares of common stock, LTIP units, and performance units. See Notes 6, 7 and 8 for further discussion of restricted shares of common stock, LTIP units, and performance units, respectively. The Company measures equity-based compensation expense based on the fair value of the awards on the grant date and recognizes the expense ratably over the vesting period, and forfeitures are recognized in the period in which they occur.

On January 7, 2021, the Company adopted the STAG Industrial, Inc. Employee Retirement Vesting Program (the "Vesting Program") to provide supplemental retirement benefits for eligible employees. For those employees who are retirement eligible or will become retirement eligible during the applicable vesting period under the terms of the Vesting Program, the Company accelerates equity-based compensation through the employee's six-month retirement notification period or retirement eligibility date, respectively.

***Related-Party Transactions***

The Company did not have any related-party transactions during the years ended December 31, 2022, 2021 and 2020.

***Taxes***

*Federal Income Taxes*

The Company elected to be taxed as a REIT under the Code commencing with its taxable year ended December 31, 2011 and intends to continue to qualify as a REIT. As a REIT, the Company is generally not subject to corporate level federal income tax on the earnings distributed currently to its stockholders that it derives from its REIT qualifying activities. As a REIT, the Company is required to distribute at least 90% of its REIT taxable income to its stockholders and meet the various other requirements imposed by the Code relating to such matters as operating results, asset holdings, distribution levels and diversity of stock ownership.

The Company will not be required to make distributions with respect to income derived from the activities conducted through subsidiaries that the Company elects to treat as taxable REIT subsidiaries ("TRS") for federal income tax purposes, nor will it have to comply with income, assets, or ownership restrictions inside of the TRS. Certain activities that the Company undertakes must or should be conducted by a TRS, such as performing non-customary services for its tenants and holding assets that it cannot hold directly. A TRS is subject to federal and state income taxes. The Company's TRS recognized a net income (loss) of approximately $0.1 million, $(8,000) and $0, for the years ended December 31, 2022, 2021 and 2020, respectively, which has been included on the accompanying Consolidated Statements of Operations.

*State and Local Income, Excise, and Franchise Tax*

The Company and certain of its subsidiaries are subject to certain state and local income, excise and franchise taxes. Taxes in the amount of approximately $2.1 million, $1.7 million and $1.7 million have been recorded in other expenses on the accompanying Consolidated Statements of Operations for the years ended December 31, 2022, 2021 and 2020, respectively.

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*Uncertain Tax Positions*

Tax benefits of uncertain tax positions are recognized only if it is more likely than not that the tax position will be sustained based solely on its technical merits, with the taxing authority having full knowledge of all relevant information. The measurement of a tax benefit for an uncertain tax position that meets the "more likely than not" threshold is based on a cumulative probability model under which the largest amount of tax benefit recognized is the amount with a greater than 50% likelihood of being realized upon ultimate settlement with the taxing authority having full knowledge of all the relevant information. As of December 31, 2022, 2021 and 2020, there were no liabilities for uncertain tax positions.

***Earnings Per Share***

The Company uses the two-class method of computing earnings per common share, which is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Basic net income per common share is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding for the period. Diluted net income per common share is computed by dividing net income available to common stockholders by the sum of the weighted average number of shares of common stock outstanding and any dilutive securities for the period.

***Segment Reporting***

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

***Concentrations of Credit Risk***

Concentrations of credit risk relevant to the Company may arise when a number of financing arrangements, including revolving credit facilities or derivatives, are entered into with the same lenders or counterparties, and have similar economic features that would cause their inability to meet contractual obligations. The Company mitigates the concentration of credit risk as it relates to financing arrangements by entering into loan syndications with multiple, reputable financial institutions and diversifying its debt counterparties. The Company also reduces exposure by diversifying its derivatives across multiple counterparties who meet established credit and capital guidelines.

Concentrations of credit risk may also arise when the Company enters into leases with multiple tenants concentrated in the same industry, or into a significant lease or multiple leases with a single tenant, or tenants are located in the same geographic region, or have similar economic features that would cause their inability to meet contractual obligations, including those to the Company, to be similarly affected. The Company regularly monitors its tenant base to assess potential concentrations of credit risk through financial statement review, tenant management calls, and press releases. Management believes the current credit risk of the Company's portfolio is reasonably well diversified and does not contain any unusual concentration of credit risk.

**3. Rental Property**

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

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| | | |
|:---|:---|:---|
| **Rental Property (in thousands)** | **December 31, 2022** | **December 31, 2021** |
| Land | $647098 | $617297 |
| Buildings, net of accumulated depreciation of $513,053 and $406,670, respectively | 4232964 | 4035210 |
| Tenant improvements, net of accumulated depreciation of $31,578 and $26,065, respectively | 44526 | 43999 |
| Building and land improvements, net of accumulated depreciation of $218,497 and $179,132, respectively | 339274 | 320041 |
| Construction in progress | 89981 | 36493 |
| Deferred leasing intangibles, net of accumulated amortization of $328,848 and $282,038, respectively | 508935 | 567658 |
| **Total rental property, net** | $**5862778** | $**5620698** |

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***Acquisitions***

The following tables summarize the acquisitions of the Company during the years ended December 31, 2022 and 2021. The Company accounted for all of its acquisitions as asset acquisitions.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Year ended December 31, 2022** | **Year ended December 31, 2022** | **Year ended December 31, 2022** | **Year ended December 31, 2022** | **Year ended December 31, 2022** |
| **Market**<sup>(1)</sup> | **Date Acquired** | **Square Feet** | **Number of Buildings** | **Purchase Price <br>(in thousands)** |
| Kansas City, MO | January 6, 2022 | 702000 | 1 | $60428 |
| Chicago, IL | January 31, 2022 | 72499 | 1 | 8128 |
| Columbus, OH | February 8, 2022 | 138213 | 1 | 11492 |
| Cleveland, OH | February 8, 2022 | 136800 | 1 | 13001 |
| Nashville, TN | March 10, 2022 | 109807 | 1 | 12810 |
| Greenville/Spartanburg, SC | March 10, 2022 | 289103 | 1 | 28274 |
| Memphis, TN | March 18, 2022 | 195622 | 1 | 15828 |
| Greenville/Spartanburg, SC | March 18, 2022 | 155717 | 1 | 16390 |
| **Three months ended March 31, 2022** |  | **1799761** | **8** | **166351** |
| Atlanta, GA | April 1, 2022 | 210858 | 1 | 21119 |
| Minneapolis/St. Paul, MN | April 4, 2022 | 160000 | 1 | 13472 |
| West Michigan, MI | April 14, 2022 | 211125 | 2 | 12274 |
| Pittsburgh, PA | April 19, 2022 | 400000 | 1 | 50178 |
| Greenville/Spartanburg, SC<sup>(2)</sup> | April 22, 2022 |  |  | 5559 |
| Birmingham, AL | May 5, 2022 | 67168 | 1 | 7871 |
| South Bay/San Jose, CA | June 7, 2022 | 175325 | 1 | 29630 |
| Washington, DC | June 29, 2022 | 140555 | 1 | 20257 |
| Hampton Roads, VA | June 29, 2022 | 102512 | 1 | 10561 |
| **Three months ended June 30, 2022** |  | **1467543** | **9** | **170921** |
| Atlanta, GA | July 15, 2022 | 159048 | 1 | 10062 |
| Fresno, CA | July 25, 2022 | 232072 | 1 | 30121 |
| El Paso, TX | July 26, 2022 | 326166 | 4 | 37792 |
| Portland, OR | September 12, 2022 | 78000 | 1 | 11281 |
| Louisville, KY | September 21, 2022 | 563032 | 1 | 38064 |
| **Three months ended September 30, 2022** |  | **1358318** | **8** | **127320** |
| Chicago, IL | December 28, 2022 | 115491 | 1 | 8055 |
| **Three months ended December 31, 2022** |  | **115491** | **1** | **8055** |
| **Year ended December 31, 2022** |  | **4741113** | **26** | $**472647** |

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

(2) The Company acquired vacant land parcels.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Year ended December 31, 2021** | **Year ended December 31, 2021** | **Year ended December 31, 2021** | **Year ended December 31, 2021** | **Year ended December 31, 2021** |
| **Market**<sup>(1)</sup> | **Date Acquired** | **Square Feet** | **Number of Buildings** | **Purchase Price <br>(in thousands)** |
| Omaha/Council Bluffs, NE-IA | January 21, 2021 | 370000 | 1 | $24922 |
| Minneapolis/St. Paul, MN | February 24, 2021 | 80655 | 1 | 10174 |
| Long Island, NY | February 25, 2021 | 64224 | 1 | 8516 |
| Sacramento, CA | February 25, 2021 | 267284 | 1 | 25917 |
| Little Rock/N. Little Rock | March 1, 2021 | 300160 | 1 | 24317 |
| Cleveland, OH | March 18, 2021 | 170000 | 1 | 6382 |
| **Three months ended March 31, 2021** |  | **1252323** | **6** | **100228** |
| Indianapolis, IN | May 17, 2021 | 154440 | 1 | 13655 |
| Baltimore, MD | May 17, 2021 | 46851 | 1 | 6228 |
| Detroit, MI | June 1, 2021 | 248040 | 1 | 23786 |
| Green Bay, WI | June 7, 2021 | 152000 | 1 | 7249 |
| Phoenix, AZ | June 14, 2021 | 41504 | 1 | 8670 |
| Cleveland, OH | June 17, 2021 | 179577 | 1 | 19602 |
| Reno/Sparks, NV | June 30, 2021 | 183435 | 1 | 13892 |
| Washington, DC | June 30, 2021 | 193420 | 1 | 17521 |
| Stockton/Modesto, CA | June 30, 2021 | 150000 | 1 | 16118 |
| **Three months ended June 30, 2021** |  | **1349267** | **9** | **126721** |
| Chicago, IL | July 19, 2021 | 109355 | 2 | 13341 |
| Chicago, IL | July 20, 2021 | 207223 | 1 | 23345 |
| Columbia, SC | July 27, 2021 | 194290 | 1 | 14546 |
| South Bay/San Jose, CA | August 9, 2021 | 75954 | 1 | 26820 |
| Columbus, OH | August 19, 2021 | 814265 | 2 | 75422 |
| Salt Lake City, UT | August 19, 2021 | 177071 | 1 | 35141 |
| Greenville/Spartanburg, SC | August 23, 2021 | 209461 | 1 | 15317 |
| Indianapolis, IN | August 26, 2021 | 78600 | 1 | 5707 |
| Birmingham, AL | August 26, 2021 | 595176 | 1 | 36850 |
| Sacramento, CA | August 30, 2021 | 114597 | 1 | 15388 |
| Chicago, IL | September 2, 2021 | 95482 | 1 | 11799 |
| Chicago, IL | September 16, 2021 | 506096 | 4 | 50661 |
| Milwaukee/Madison, WI | September 16, 2021 | 157438 | 1 | 13650 |
| Denver, CO | September 24, 2021 | 195674 | 2 | 39136 |
| Milwaukee/Madison, WI | September 28, 2021 | 156482 | 1 | 10807 |
| Chicago, IL | September 29, 2021 | 110035 | 1 | 10585 |
| Boston, MA | September 29, 2021 | 247056 | 2 | 28704 |
| **Three months ended September 30, 2021** |  | **4044255** | **24** | **427219** |
| Omaha/Council Bluffs, NE-IA | October 6, 2021 | 99616 | 2 | 8669 |
| El Paso, TX | October 8, 2021 | 276360 | 1 | 27844 |
| St. Louis, MO | October 12, 2021 | 121223 | 1 | 12991 |
| South Bay/San Jose, CA | October 12, 2021 | 31172 | 1 | 11691 |
| Chicago, IL | October 13, 2021 | 56676 | 1 | 5735 |
| Dallas/Ft. Worth, TX | October 13, 2021 | 202140 | 2 | 25913 |
| Sacramento, CA | October 25, 2021 | 82174 | 1 | 10275 |
| Detroit, MI | November 1, 2021 | 126720 | 1 | 18291 |
| Philadelphia, PA | November 3, 2021 | 385399 | 1 | 25909 |
| West Michigan, MI | November 9, 2021 | 159900 | 1 | 19649 |
| Philadelphia, PA | November 9, 2021 | 109504 | 1 | 8071 |
| Minneapolis/St. Paul, MN | November 10, 2021 | 316636 | 1 | 30583 |
| Chicago, IL | November 12, 2021 | 579338 | 4 | 62948 |
| Philadelphia, PA | November 12, 2021 | 128959 | 1 | 26446 |
| Sacramento, CA | December 1, 2021 | 67200 | 1 | 7721 |
| Des Moines, IA | December 9, 2021 | 200957 | 1 | 22866 |
| Greenville/Spartanburg, SC | December 17, 2021 | 231626 | 1 | 31169 |
| Milwaukee/Madison, WI | December 17, 2021 | 192800 | 1 | 23327 |
| Sacramento, CA | December 21, 2021 | 188830 | 2 | 27616 |
| Sacramento, CA<sup>(2)</sup> | December 22, 2021 |  |  | 28930 |
| Des Moines, IA | December 23, 2021 | 179459 | 1 | 13556 |
| Philadelphia, PA | December 23, 2021 | 589580 | 1 | 53790 |
| Nashville, TN | December 23, 2021 | 58672 | 1 | 7271 |
| Westchester/S. Connecticut, CT/NY | December 23, 2021 | 167700 | 1 | 16700 |
| Washington, DC | December 28, 2021 | 1231200 | 2 | 140668 |
| Minneapolis/St. Paul, MN | December 28, 2021 | 83000 | 1 | 11058 |
| Chicago, IL | December 29, 2021 | 102000 | 1 | 9742 |
| Omaha/Council Bluffs, NE-IA | December 30, 2021 | 178368 | 1 | 17888 |
| Atlanta, GA | December 31, 2021 | 103720 | 1 | 11083 |
| **Three months ended December 31, 2021** |  | **6250929** | **35** | **718400** |
| **Year ended December 31, 2021** |  | **12896774** | **74** | $**1372568** |

---

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

(2) The Company acquired a building under development.

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The following table summarizes the allocation of the consideration paid at the date of acquisition during the years ended December 31, 2022 and 2021, for the acquired assets and liabilities in connection with the acquisitions identified in the tables above.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year ended December 31, 2022** | **Year ended December 31, 2022** | **Year ended December 31, 2021** | **Year ended December 31, 2021** |
|<br>**Acquired Assets and Liabilities** | **Purchase price (in thousands)** | **Weighted average amortization period (years) of intangibles at acquisition** | **Purchase price (in thousands)** | **Weighted average amortization period (years) of intangibles at acquisition** |
| Land | $39346 | N/A | $137827 | N/A |
| Buildings | 360209 | N/A | 988456 | N/A |
| Tenant improvements | 2640 | N/A | 7356 | N/A |
| Building and land improvements | 19589 | N/A | 58504 | N/A |
| Construction in progress |  | N/A | 24581 | N/A |
| Other assets | 2134 | N/A | 1004 | N/A |
| Operating lease right-of-use assets | 3541 | N/A | 5627 | N/A |
| Deferred leasing intangibles - In-place leases | 34321 | 7.9 | 103051 | 7.8 |
| Deferred leasing intangibles - Tenant relationships | 18418 | 11.1 | 52579 | 10.6 |
| Deferred leasing intangibles - Above market leases | 2456 | 11.6 | 10764 | 11.4 |
| Deferred leasing intangibles - Below market leases | (6021) | 7.5 | (10691) | 6.1 |
| Operating lease liabilities | (3541) | N/A | (5627) | N/A |
| Below market assumed debt adjustment |  | N/A | 161 | 18.8 |
| Tenant prepaid rent | (445) | N/A | (1024) | N/A |
| &nbsp;&nbsp;&nbsp;**Total purchase price** | **472647** |  | **1372568** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Mortgage note assumed |  |  | (5103) |  |
| **Net assets acquired** | $**472647** |  | $**1367465** |  |

---

On February 25, 2021, the Company assumed a mortgage note of approximately $5.1 million in connection with the acquisition of the property located in Long Island, NY. For a discussion of the method used to determine the fair value of the mortgage note, see Note 4.

***Dispositions***

The following table summarizes the Company's dispositions for the years ended December 31, 2022, 2021, and 2020.

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| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|<br>**Sales of rental property, net (dollars in thousands)** | **2022** | **2021** | **2020** |
| Number of buildings | 8 | 22 | 7 |
| Number of land parcels | 1 |  |  |
| Building square feet (in millions) | 1.8 | 2.7 | 3.4 |
| 2022 dispositions contribution to net income<sup>(1)</sup> | $1008 | $4699 | $4764 |
| 2021 dispositions contribution to net income<sup>(1)</sup> | $— | $862 | $3645 |
| 2020 dispositions contribution to net income<sup>(1)</sup> | $— | $— | $1788 |
| Proceeds from sales of rental property, net | $135348 | $187972 | $273560 |
| Net book value | $77861 | $89992 | $137827 |
| Gain on the sales of rental property, net | $57487 | $97980 | $135733 |

---

(1) Exclusive of any loss on impairments, gain on involuntary conversion, and gain on the sales of rental property, net.

All of the dispositions were sold to third parties and were accounted for under the full accrual method.

***Assets Held for Sale***

As of December 31, 2022, the related land and building and improvements, net of approximately $0.6 million and $4.1 million, respectively, for one building was classified as assets held for sale, net on the accompanying Consolidated Balance Sheets. This building contributed approximately $0.4 million, $0.4 million, and $0.3 million to net income during the years ended December 31, 2022, 2021 and 2020, respectively. Subsequent to December 31, 2022, in January 2023, this building was sold to a third party.

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***Gain on Involuntary Conversion***

The Company recognized a gain on involuntary conversion of approximately $0, $0, and $2.2 million during the years ended December 31, 2022, 2021 and 2020, respectively. The gain on involuntary conversion during the year ended December 31, 2020 related to an eminent domain taking of a portion of a parcel of land.

***Loss on Impairments*** 

The following table summarizes the Company's loss on impairments for assets held and used during the years ended December 31, 2022 and 2020. The Company did not recognize a loss on impairments during the year ended December 31, 2021.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Market** <sup>(1)</sup> | **Buildings** | **Event or Change in Circumstance Leading to Impairment Evaluation**<sup>(2)</sup> | | **Valuation technique utilized to estimate fair value** | | **Fair Value**<sup>(3)</sup> | **Loss on Impairments** |
| **Market** <sup>(1)</sup> | **Buildings** | **Event or Change in Circumstance Leading to Impairment Evaluation**<sup>(2)</sup> | | **Valuation technique utilized to estimate fair value** | | **(in thousands)** | **(in thousands)** |
| Hartford, CT | 1 | Change in estimated hold period |  | Discounted cash flows | (4) | $834 | $**1783** |
| **Year ended December 31, 2022** | **Year ended December 31, 2022** | **Year ended December 31, 2022** |  |  |  |  | $**1783** |
| Williamsport, PA | 1 | Change in estimated hold period | (5) | Discounted cash flows | (6) | $5019 | $**3172** |
| Albion, IN | 5 | Change in estimated hold period | (7) | Discounted cash flows | (8) | $1252 | $**2405** |
| **Year ended December 31, 2020** | **Year ended December 31, 2020** | **Year ended December 31, 2020** |  |  |  |  | $**5577** |

---

(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 probability weighted recovery analysis of certain scenarios, and it was determined that the carrying value of the property and intangibles were not recoverable from the estimated future undiscounted cash flows.

(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: discount rate of 10.0% and exit capitalization rate of 8.5%.

(5)This property was sold during the year ended December 31, 2022.

(6)Level 3 inputs used to determine fair value for the property impaired: discount rate of 10.5% and exit capitalization rate of 10.0%.

(7)Four of the buildings were sold during the year ended December 31, 2021.

(8)Level 3 inputs used to determine fair value for the property impaired: discount rate of 11.0% and exit capitalization rate of 10.0%.

***Deferred Leasing Intangibles***

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|<br>**Deferred Leasing Intangibles (in thousands)** | **Gross** | **Accumulated Amortization** | **Net** | **Gross** | **Accumulated Amortization** | **Net** |
| Above market leases | $86172 | $(34954) | $51218 | $91565 | $(32110) | $59455 |
| Other intangible lease assets | 751611 | (293894) | 457717 | 758131 | (249928) | 508203 |
| **Total deferred leasing intangible assets** | $**837783** | $**(328848)** | $**508935** | $**849696** | $**(282038)** | $**567658** |
| Below market leases | $57020 | $(24593) | $32427 | $56857 | $(21136) | $35721 |
| **Total deferred leasing intangible liabilities** | $**57020** | $**(24593)** | $**32427** | $**56857** | $**(21136)** | $**35721** |

---

The following table summarizes the amortization expense and the net increase (decrease) to rental income for the amortization of deferred leasing intangibles during the years ended December 31, 2022, 2021 and 2020.

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|<br>**Deferred Leasing Intangibles Amortization (in thousands)** | **2022** | **2021** | **2020** |
| Net increase (decrease) to rental income related to above and below market lease amortization | $329 | $(2073) | $(4363) |
| Amortization expense related to other intangible lease assets | $95901 | $88729 | $83160 |

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The following table summarizes the amortization of deferred leasing intangibles over the next five calendar years as of December 31, 2022.

---

| | | |
|:---|:---|:---|
| **Year** | **Amortization Expense Related to Other Intangible Lease Assets (in thousands)** | **Net Increase (Decrease) to Rental Income Related to Above and Below Market Lease Amortization (in thousands)** |
| 2023 | $84098 | $249 |
| 2024 | $72640 | $(418) |
| 2025 | $63443 | $(252) |
| 2026 | $54351 | $(968) |
| 2027 | $42957 | $(1778) |

---

------

**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 December 31, 2022 and 2021.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Loan** | **Principal Outstanding as of December 31, 2022 (in thousands)** | **Principal Outstanding as of December 31, 2021 (in thousands)** | **Interest <br>Rate**<sup>(1)(2)</sup> | **Maturity Date** | **Prepayment Terms**<sup>(3)</sup>  |
| **Unsecured credit facility:** |  |  |  |  |  |
| Unsecured Credit Facility<sup>(4)</sup> | $175000 | $296000 | Term SOFR + 0.855% | October 23, 2026 | i |
| **Total unsecured credit facility** | **175000** | **296000** |  |  |  |
| **Unsecured term loans:** |  |  |  |  |  |
| Unsecured Term Loan D<sup>(5)</sup> |  | 150000 | 2.85% | January 4, 2023 | i |
| Unsecured Term Loan E<sup>(5)</sup> |  | 175000 | 3.77% | January 15, 2024 | i |
| Unsecured Term Loan F | 200000 | 200000 | 2.94% | January 12, 2025 | i |
| Unsecured Term Loan G | 300000 | 300000 | 1.09% | February 5, 2026 | i |
| Unsecured Term Loan A | 150000 | 150000 | 2.14% | March 15, 2027 | i |
| Unsecured Term Loan H | 187500 |  | 3.75% | January 25, 2028 | i |
| Unsecured Term Loan I | 187500 |  | 2.89% | January 25, 2028 | i |
| Total unsecured term loans | 1025000 | 975000 |  |  |  |
| Total unamortized deferred financing fees and debt issuance costs | (4560) | (4423) |  |  |  |
| **Total carrying value unsecured term loans, net** | **1020440** | **970577** |  |  |  |
| **Unsecured notes:** |  |  |  |  |  |
| Series F Unsecured Notes<sup>(6)</sup> | 100000 | 100000 | 3.98% | January 5, 2023 | ii |
| Series A Unsecured Notes | 50000 | 50000 | 4.98% | October 1, 2024 | ii |
| Series D Unsecured Notes | 100000 | 100000 | 4.32% | February 20, 2025 | ii |
| Series G Unsecured Notes | 75000 | 75000 | 4.10% | June 13, 2025 | ii |
| Series B Unsecured Notes | 50000 | 50000 | 4.98% | July 1, 2026 | ii |
| Series C Unsecured Notes | 80000 | 80000 | 4.42% | December 30, 2026 | ii |
| Series E Unsecured Notes | 20000 | 20000 | 4.42% | February 20, 2027 | ii |
| Series H Unsecured Notes | 100000 | 100000 | 4.27% | June 13, 2028 | ii |
| Series I Unsecured Notes | 275000 | 275000 | 2.80% | September 29, 2031 | ii |
| Series K Unsecured Notes | 400000 |  | 4.12% | June 28, 2032 | ii |
| Series J Unsecured Notes | 50000 | 50000 | 2.95% | September 28, 2033 | ii |
| Total unsecured notes | 1300000 | 900000 |  |  |  |
| Total unamortized deferred financing fees and debt issuance costs | (4558) | (3059) |  |  |  |
| **Total carrying value unsecured notes, net** | **1295442** | **896941** |  |  |  |
| **Mortgage notes (secured debt):** |  |  |  |  |  |
| Wells Fargo Bank, National Association CMBS Loan |  | 46610 | 4.31% | December 1, 2022 | iii |
| Thrivent Financial for Lutherans | 3296 | 3430 | 4.78% | December 15, 2023 | iv |
| United of Omaha Life Insurance Company | 4744 | 4943 | 3.71% | October 1, 2039 | ii |
| Total mortgage notes | 8040 | 54983 |  |  |  |
| Net unamortized fair market value discount | (137) | (136) |  |  |  |
| Total unamortized deferred financing fees and debt issuance costs | (5) | (103) |  |  |  |
| **Total carrying value mortgage notes, net** | **7898** | **54744** |  |  |  |
| **Total / weighted average interest rate**<sup>(6)</sup> | $**2498780** | **2218262** | **3.39%** |  |  |

---

(1)Interest rate as of December 31, 2022. At December 31, 2022, the one-month Term Secured Overnight Financing Rate ("Term SOFR") was 4.35806%. 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 or discounts. The spread over the applicable rate for the Company's unsecured credit facility and unsecured term loans is based on the Company's debt rating and leverage ratio, as defined in the respective loan agreements.

(2)The unsecured credit facility has a stated rate of one-month Term SOFR plus a 0.10% adjustment and a spread of 0.775%, less a sustainability-related interest rate adjustment of 0.02%. The unsecured term loans A, F, and G have a stated interest rate of one-month Term SOFR plus a 0.10% adjustment and a spread of 0.85%, less a sustainability-related interest rate adjustment of 0.02%. The unsecured term loans H and I have a stated interest rate of one-month Term SOFR plus a 0.10% adjustment and a spread of 0.85%. As of December 31, 2022, one-month Term SOFR for the Unsecured Term Loans A, F, G, H, and I was swapped to a fixed rate of 1.31%, 2.11%, 0.26%, 2.90%, and 2.04%, respectively (which includes the 0.10% adjustment). One-month Term SOFR for the Unsecured Term Loan G will be swapped to a fixed rate of 0.95% effective April 18, 2023. One-month Term SOFR for the Unsecured Term Loan I will be swapped to a fixed rate of 2.66% effective January 4, 2023. One-month Term SOFR for the Unsecured Term Loan H will be swapped to a fixed rate of 2.50% effective January 12, 2024.

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

------

(4)The capacity of the unsecured credit facility is $1.0 billion. Deferred financing fees and debt issuance costs, net of accumulated amortization related to the unsecured credit facility of approximately $5.2 million and $5.2 million are included in prepaid expenses and other assets on the accompanying Consolidated Balance Sheets as of December 31, 2022 and December 31, 2021, respectively. The initial maturity date is October 24, 2025, or such later date which may be extended pursuant to two six-month extension options exercisable by the Company in its discretion upon advance written notice. Exercise of each six-month option is subject to the following conditions: (i) absence of a default immediately before the extension and immediately after giving effect to the extension; (ii) accuracy of representations and warranties as of the extension date (both immediately before and after the extension), as if made on the extension date; and (iii) payment of a fee. Neither extension option is subject to lender consent, assuming proper notice and satisfaction of the conditions. We are required to pay a facility fee on the aggregate commitment amount (currently $1.0 billion) at a rate per annum of 0.1% to 0.3%, depending on our debt rating, as defined in the credit agreement. The facility fee is due and payable quarterly.

(5)The Unsecured Term Loan D and the Unsecured Term Loan E were repaid in full on July 26, 2022 in connection with the execution of the Unsecured Term Loan H and the Unsecured Term Loan I.

(6)Subsequent to December 31, 2022, on January 5, 2023, the Series F Unsecured Notes were repaid in full. Refer to Note 13 for additional details.

(7)The weighted average interest rate was calculated using the fixed interest rate swapped on the notional amount of $1,025.0 million of debt, and is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums or discounts.

The aggregate undrawn nominal commitment on the unsecured credit facility as of December 31, 2022 was approximately $821.4 million, including issued letters of credit. The Company's actual borrowing capacity at any given point in time may be less or restricted to a maximum amount based on the Company's debt covenant compliance. Total accrued interest for the Company's indebtedness was approximately $13.1 million and $8.6 million as of December 31, 2022 and 2021, respectively, and is included in accounts payable, accrued expenses and other liabilities on the accompanying Consolidated Balance Sheets.

The following table summarizes the costs included in interest expense related to the Company's debt arrangements on the accompanying Consolidated Statement of Operations for the years ended December 31, 2022, 2021 and 2020.

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|<br>**Costs Included in Interest Expense (in thousands)** | **2022** | **2021** | **2020** |
| Amortization of deferred financing fees and debt issuance costs and fair market value premiums/discounts | $3747 | $2931 | $2922 |
| Facility, unused, and other fees | $1548 | $1642 | $1311 |

---

*2022 Debt Activity* 

On October 3, 2022, the Company achieved a 2022 public disclosure assessment score of "A" from the Global Real Estate Sustainability Benchmark (GRESB). The improved score triggered a sustainability-related interest rate adjustment for the Unsecured Term Loan A, Unsecured Term Loan F, Unsecured Term Loan G, and Unsecured Credit Facility. The interest rate adjustment, a 0.02% interest rate reduction for each instrument, went into effect on October 17, 2022 and will end on June 29, 2024, in accordance with the respective loan agreements.

On September 1, 2022, the mortgage note associated with the Wells Fargo Bank, National Association CMBS Loan was repaid in full.

On September 1, 2022, the Company entered into separate amended and restated loan agreements for the Unsecured Term Loan A, the Unsecured Term Loan F, and the Unsecured Term Loan G ("Amended and Restated Unsecured Term Loans"), to provide that borrowings under the Amended and Restated Unsecured Term Loans bear a current annual interest rate of one-month Term SOFR, plus an adjustment of 0.10% and a spread of 0.85%, based on the Company's debt rating and leverage ratio (as defined in the applicable loan agreement). Other than the interest rate provisions described above, the material terms of the Amended and Restated Unsecured Term Loans, including the maturity dates, remain unchanged.

On July 26, 2022, the Company entered into an amended and restated credit agreement for the unsecured credit facility (the "July 2022 Credit Agreement"), which provided for an increase in the aggregate commitments available for borrowing under the unsecured credit facility from $750.0 million to up to $1.0 billion. The July 2022 Credit Agreement also provided for the replacement of one-month LIBOR for one-month Term SOFR, plus a 0.10% adjustment. In connection with the July 2022 Credit Agreement, the Company incurred approximately $1.4 million in costs which are being deferred and amortized through the maturity date of the unsecured credit facility. The unamortized fees will continue to be deferred and amortized through the maturity date. Other than the increase in the borrowing commitments and the interest rate provisions described above, the material terms of the unsecured credit facility remain unchanged.

On July 26, 2022, the Company entered into (i) an unsecured term loan agreement with Wells Fargo Bank, National Association and the other lenders party thereto, providing for a new senior unsecured term loan in the original principal amount of $187.5 million ("Unsecured Term Loan H") and (ii) an unsecured term loan agreement with Bank of America, N.A., and the

------

other lenders party thereto, providing for a new senior unsecured term loan in the original principal amount of $187.5 million ("Unsecured Term Loan I"). In connection with the new unsecured term loans, the $150.0 million Unsecured Term Loan D and the $175.0 million Unsecured Term Loan E were repaid in full. Each of the Unsecured Term Loan H and the Unsecured Term Loan I bears a current annual interest rate of one-month Term SOFR, plus a 0.10% adjustment and a spread of 0.85% based on the Company's debt rating and leverage ratio (as defined in the applicable loan agreement), and matures on January 25, 2028. In connection with the new unsecured term loans, the Company incurred approximately $1.2 million in costs which are being deferred and amortized through the maturity dates on the unsecured term loans. The Company also recognized debt extinguishment and modification expenses of approximately $0.8 million related to unamortized deferred financing fees and debt issuance costs related to the Unsecured Term Loan D and the Unsecured Term Loan E and other third-party costs.

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

*2021 Debt Activity*

On October 26, 2021, the Company entered into an amendment to the unsecured credit facility (the "October 2021 Credit Facility Amendment"). The October 2021 Credit Facility Amendment provides for an extension of the maturity date to October 24, 2025, with two six-month extension options, subject to certain conditions, and a reduced current interest rate of LIBOR plus a spread of 0.775% and facility fee of 0.15%, each based on the Company's current debt rating (as defined in the credit agreement) and leverage level. In connection with the October 2021 Credit Facility Amendment, the Company incurred approximately $3.7 million in costs which are being deferred and amortized through the maturity date of the unsecured credit facility. The Company also incurred approximately $0.1 million of modification expenses which were recognized in debt extinguishment and modification expenses in the accompanying Consolidated Statements of Operations. Other than the maturity and interest rate provisions described above, the material terms of the unsecured credit facility remained unchanged.

On October 26, 2021, the Company entered into an amendment to the Unsecured Term Loan A (the "Amendment to Unsecured Term Loan A"). The Amendment to Unsecured Term Loan A provides for an extension of the maturity date to March 15, 2027 and a reduced current interest rate of LIBOR plus a spread of 0.85% based on the Company's current debt rating (as defined in the loan agreement) and leverage level. In connection with the Amendment to Unsecured Term Loan A, the Company incurred approximately $0.6 million in costs which are being deferred and amortized through the new maturity date. The Company also incurred approximately $0.2 million of modification expenses which were recognized in debt extinguishment and modification expenses in the accompanying Consolidated Statements of Operations. Other than the maturity and interest rate provisions described above, the material terms of the Unsecured Term Loan A remain unchanged.

On October 26, 2021, the Company entered into amendments to the Unsecured Term Loan E, the Unsecured Term Loan F, and the Unsecured Term Loan G ("Term Loan Amendments") that provide for reduced current interest rates on each of the loans of LIBOR plus a spread of 0.85% based on the Company's current debt rating (as defined in each loan agreement) and leverage level. In connection with the Term Loan Amendments, the Company incurred approximately $0.6 million in costs which are being deferred and amortized through the respective maturity dates. The Company also incurred approximately $1.2 million of modification expenses which were recognized in debt extinguishment and modification expenses in the accompanying Consolidated Statements of Operations. Other than the interest rate provisions described above, the material terms of the Unsecured Term Loan E, the Unsecured Term Loan F, and the Unsecured Term Loan G remain unchanged.

On October 26, 2021, the Company entered into an amendment to the Unsecured Term Loan D to conform certain provisions of such loan agreement to the unsecured credit facility.

On July 8, 2021, the Company entered into a note purchase agreement (the "July 2021 NPA") for the private placement by the Operating Partnership of $275.0 million senior unsecured notes (the "Series I Unsecured Notes") maturing September 29, 2031, with a fixed annual interest rate of 2.80%, and $50.0 million senior unsecured notes (the "Series J Unsecured Notes") maturing September 28, 2033, with a fixed annual interest rate of 2.95%. The July 2021 NPA contains a number of financial covenants substantially similar to the financial covenants contained in the Company's unsecured credit facility and other unsecured notes, plus a financial covenant that requires the Company to maintain a minimum interest coverage ratio of not less than 1.50:1.00.

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The Operating Partnership issued the Series I Unsecured Notes and Series J Unsecured Notes on September 28, 2021. The Company and certain wholly owned subsidiaries of the Operating Partnership are guarantors of the unsecured notes.

On February 25, 2021, the Company assumed a mortgage note with United of Omaha Life Insurance Company of approximately $5.1 million in connection with the acquisition of the property located in Long Island, NY, which serves as collateral for the debt. The debt matures on October 1, 2039 and bears interest at 3.71% per annum. The assumed debt was recorded at fair value and a fair value discount of approximately $0.2 million was recorded. The fair value of debt was determined by discounting the future cash flows using the current rate of approximately 4.10% at which loans would be made to borrowers with similar credit ratings for loans with similar maturities, terms, and loan-to-value ratios. The fair value of the debt is based on Level 3 inputs and is a nonrecurring fair value measurement.

On February 5, 2021, the Company entered into an amendment to the unsecured credit facility (the "Credit Facility Amendment"). The Credit Facility Amendment provided for an increase in the aggregate commitments available for borrowing under the unsecured credit facility from $500 million to up to $750 million. In connection with the Credit Facility Amendment, the Company incurred approximately $1.2 million in costs which are being deferred and amortized through the maturity date of the unsecured credit facility. Other than the increase in the borrowing commitments, the material terms of the unsecured credit facility remain unchanged.

On February 5, 2021, the Company entered into an amendment to the Unsecured Term Loan G (the "Amendment to Unsecured Term Loan G"). The Amendment to Unsecured Term Loan G provided for an extension of the maturity date to February 5, 2026 and a reduced stated interest rate of one-month LIBOR plus a spread that ranges from 0.85% to 1.65% for LIBOR borrowings based on the Company's debt ratings. The Amendment to Unsecured Term Loan G also amended the provision for a minimum interest rate, or floor, for LIBOR borrowings to 0.00% and for Base Rate borrowings to 1.00%. In connection with the Amendment to Unsecured Term Loan G, the Company incurred approximately $1.6 million in costs which are being deferred and amortized through the new maturity date of February 5, 2026. The Company also incurred approximately $0.7 million of modification expenses which were recognized in debt extinguishment and modification expenses in the accompanying Consolidated Statements of Operations. Additionally, the Company reversed the previously accrued extension fees of approximately $1.1 million from the amendment to the Unsecured Term Loan G that was entered into on April 17, 2020, which resulted in a decrease to interest expense of approximately $0.3 million. Other than the maturity and interest rate provisions described above, the material terms of the Unsecured Term Loan G remain unchanged.

*Financial Covenant Considerations*

The Company's ability to borrow under the unsecured credit facility, unsecured term loans, and unsecured notes are subject to its ongoing compliance with a number of customary financial covenants, including:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a maximum secured leverage ratio of not greater than 0.40:1.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a maximum unencumbered leverage ratio of not greater than 0.60:1.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a minimum fixed charge ratio of not less than or equal to 1.50:1.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a minimum unsecured interest coverage ratio of not less than or equal to 1.75:1.00; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• with respect to the unsecured notes, a minimum interest coverage ratio of not less than 1.50:1.00.

The Company was in compliance with all such applicable restrictions and financial and other covenants as of December 31, 2022 and 2021 related to its unsecured credit facility, unsecured term loans, and unsecured notes. In the event of a default under the unsecured credit facility or the unsecured term loans, the Company's dividend distributions are limited to the minimum amount necessary for the Company to maintain its status as a REIT.

Each of the Company's mortgage notes has specific properties and assignments of rents and leases that are collateral for these loans. The Wells Fargo Bank, National Association CMBS debt facility contained certain financial and other covenants and was repaid in full in 2022. The Company was in compliance with all such applicable restrictions and financial and other covenants as of December 31, 2021, related to the Wells Fargo Bank, National Association CMBS loan. The real estate net book value of the properties that are collateral for the Company's debt arrangements was approximately $14.8 million and $88.5 million at December 31, 2022 and 2021, respectively, and is limited to senior, property-level secured debt financing arrangements.

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*Fair Value of Debt*

The following table summarizes the aggregate principal amount outstanding under the Company's debt arrangements and the corresponding estimate of fair value as of December 31, 2022 and 2021. The fair value of the Company's debt is based on Level 3 inputs.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** |
|<br>**Indebtedness (in thousands)** | **Principal Outstanding** | **Fair Value** | **Principal Outstanding** | **Fair Value** |
| Unsecured credit facility | $175000 | $175000 | $296000 | $296000 |
| Unsecured term loans | 1025000 | 1025000 | 975000 | 975224 |
| Unsecured notes | 1300000 | 1150283 | 900000 | 937183 |
| Mortgage notes | 8040 | 6855 | 54983 | 56323 |
| &nbsp;&nbsp;&nbsp;**Total principal amount** | **2508040** | $**2357138** | **2225983** | $**2264730** |
| &nbsp;&nbsp;&nbsp;Net unamortized fair market value discount | (137) |  | (136) |  |
| &nbsp;&nbsp;&nbsp;Total unamortized deferred financing fees and debt issuance costs | (9123) |  | (7585) |  |
| &nbsp;&nbsp;&nbsp;**Total carrying value** | $**2498780** |  | $**2218262** |  |

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*Future Principal Payments of Debt*

The following table summarizes the Company's aggregate future principal payments of the Company's debt at December 31, 2022.

---

| | |
|:---|:---|
| **Year** | **Future Principal Payments of Debt <br>(in thousands)** |
| 2023 | $103502 |
| 2024 | 50215 |
| 2025 | 550223 |
| 2026 | 430231 |
| 2027 | 170240 |
| Thereafter | 1203629 |
| **Total aggregate principal payments** | $**2508040** |

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**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.

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The following table summarizes the Company's outstanding interest rate swaps as of December 31, 2022. All of the Company's interest rate swaps are designated as qualifying cash flow hedges.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Interest Rate Derivative Counterparty** | **Trade Date** | **Effective Date** | **Notional Amount <br>(in thousands)** | **Fair Value <br>(in thousands)** | **Pay Fixed Interest Rate** | **Receive Variable Interest Rate** | **Maturity Date** |
| The Toronto-Dominion Bank | Jul-20-2017 | Jul-28-2022 | $25000 | $5 | 1.8830% | One-month Term SOFR | Jan-04-2023 |
| Royal Bank of Canada | Jul-20-2017 | Jul-28-2022 | $25000 | $5 | 1.8980% | One-month Term SOFR | Jan-04-2023 |
| Wells Fargo Bank, N.A. | Jul-20-2017 | Jul-28-2022 | $25000 | $5 | 1.8750% | One-month Term SOFR | Jan-04-2023 |
| PNC Bank, N.A. | Jul-20-2017 | Jul-28-2022 | $25000 | $5 | 1.8860% | One-month Term SOFR | Jan-04-2023 |
| PNC Bank, N.A. | Jul-20-2017 | Jul-28-2022 | $50000 | $10 | 1.8850% | One-month Term SOFR | Jan-04-2023 |
| The Toronto-Dominion Bank | Apr-20-2020 | Aug-10-2022 | $75000 | $981 | 0.2660% | One-month Term SOFR | Apr-18-2023 |
| Wells Fargo Bank, N.A. | Apr-20-2020 | Aug-10-2022 | $75000 | $984 | 0.2520% | One-month Term SOFR | Apr-18-2023 |
| The Toronto-Dominion Bank | Apr-20-2020 | Aug-10-2022 | $75000 | $981 | 0.2660% | One-month Term SOFR | Apr-18-2023 |
| Wells Fargo Bank, N.A. | Apr-20-2020 | Aug-10-2022 | $75000 | $984 | 0.2520% | One-month Term SOFR | Apr-18-2023 |
| Bank of Montreal | Jul-24-2018 | Jul-26-2022 | $50000 | $999 | 2.9160% | One-month Term SOFR | Jan-12-2024 |
| The Toronto-Dominion Bank | Jul-24-2018 | Jul-26-2022 | $50000 | $1003 | 2.9080% | One-month Term SOFR | Jan-12-2024 |
| PNC Bank, N.A. | Jul-24-2018 | Jul-26-2022 | $50000 | $997 | 2.9190% | One-month Term SOFR | Jan-12-2024 |
| U.S. Bank, N.A. | Jul-24-2018 | Jul-26-2022 | $25000 | $500 | 2.9120% | One-month Term SOFR | Jan-12-2024 |
| Wells Fargo Bank, N.A. | May-02-2019 | Aug-15-2022 | $50000 | $2179 | 2.2360% | One-month Term SOFR | Jan-15-2025 |
| U.S. Bank, N.A. | May-02-2019 | Aug-15-2022 | $50000 | $2182 | 2.2380% | One-month Term SOFR | Jan-15-2025 |
| Regions Bank | May-02-2019 | Aug-15-2022 | $50000 | $2177 | 2.2389% | One-month Term SOFR | Jan-15-2025 |
| Bank of Montreal | Jul-16-2019 | Aug-15-2022 | $50000 | $2700 | 1.7100% | One-month Term SOFR | Jan-15-2025 |
| U.S. Bank, N.A. | Feb-17-2021 | Apr-18-2023 | $150000 | $12024 | 0.9520% | One-month Term SOFR | Feb-5-2026 |
| Wells Fargo Bank, N.A. | Feb-17-2021 | Apr-18-2023 | $75000 | $6003 | 0.9460% | One-month Term SOFR | Feb-5-2026 |
| The Toronto-Dominion Bank | Feb-17-2021 | Apr-18-2023 | $75000 | $6050 | 0.9355% | One-month Term SOFR | Feb-5-2026 |
| Regions Bank | Oct-26-2021 | Aug-01-2022 | $50000 | $4953 | 1.3090% | One-month Term SOFR | Mar-15-2027 |
| Bank of Montreal | Oct-26-2021 | Aug-01-2022 | $50000 | $4976 | 1.3090% | One-month Term SOFR | Mar-15-2027 |
| PNC Bank, N.A. | Oct-26-2021 | Aug-01-2022 | $50000 | $4952 | 1.3150% | One-month Term SOFR | Mar-15-2027 |
| PNC Bank, N.A. | Jul-27-2022 | Jan-04-2023 | $50000 | $2623 | 2.6420% | One-month Term SOFR | Jan-25-2028 |
| The Toronto-Dominion Bank | Jul-27-2022 | Jan-04-2023 | $50000 | $2614 | 2.6530% | One-month Term SOFR | Jan-25-2028 |
| Regions Bank | Jul-27-2022 | Jan-04-2023 | $50000 | $2583 | 2.6550% | One-month Term SOFR | Jan-25-2028 |
| U.S. Bank, N.A. | Jul-27-2022 | Jan-12-2024 | $75000 | $2668 | 2.4865% | One-month Term SOFR | Jan-25-2028 |
| The Toronto-Dominion Bank | Jul-27-2022 | Jan-12-2024 | $50000 | $1778 | 2.4910% | One-month Term SOFR | Jan-25-2028 |
| Wells Fargo Bank, N.A. | Jul-27-2022 | Jan-12-2024 | $50000 | $1756 | 2.4930% | One-month Term SOFR | Jan-25-2028 |
| PNC Bank, N.A. | Jul-27-2022 | Jul-27-2022 | $50000 | $2546 | 2.6790% | One-month Term SOFR | Jan-25-2028 |

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In connection with the Amended and Restated Unsecured Term Loans that were entered into on September 1, 2022, as discussed in Note 4, the Company transitioned all of its outstanding interest rate swaps to one-month Term SOFR. The Company made various Accounting Standards Codification Topic 848 elections related to changes in critical terms of the hedging relationships due to reference rate reform to not result in a dedesignation of these hedging relationships. As of December 31, 2022, all of the Company's interest rate swap agreements were indexed to one-month Term SOFR.

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

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| | | | | |
|:---|:---|:---|:---|:---|
| **Balance Sheet Line Item (in thousands)** | **Notional Amount December 31, 2022** | **Fair Value December 31, 2022** | **Notional Amount December 31, 2021** | **Fair Value December 31, 2021** |
| Interest rate swaps-Asset | $1650000 | $72223 | $600000 | $5220 |
| Interest rate swaps-Liability | $— | $— | $825000 | $(17052) |

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*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. The Company uses interest rate swaps to fix the rate of its long term variable rate debt. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

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

Amounts reported in accumulated other comprehensive income (loss) related to derivatives designated as qualifying cash flow hedges will be reclassified to interest expense as interest payments are made on the Company's variable rate debt. The Company estimates that approximately $39.8 million will be reclassified from accumulated other comprehensive income (loss) as a decrease to interest expense over the next 12 months.

The following table summarizes the effect of cash flow hedge accounting and the location of the amounts related to the Company's derivatives in the consolidated financial statements for the years ended December 31, 2022, 2021 and 2020.

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| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|<br>**Effect of Cash Flow Hedge Accounting (in thousands)** | **2022** | **2021** | **2020** |
| Income (loss) recognized in accumulated other comprehensive income (loss) on interest rate swaps | $85726 | $12520 | $(35548) |
| Income (loss) reclassified from accumulated other comprehensive income (loss) into income as interest expense | $1640 | $(16336) | $(13439) |
| Total interest expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded | $78018 | $63484 | $62343 |

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*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 December 31, 2022, the Company had not breached the provisions of these agreements and had not posted any collateral related to these agreements.

*Fair Value of Interest Rate Swaps*

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

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

Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company or its counterparties. However, as of December 31, 2022 and 2021, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy.

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

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **Fair Value Measurements as of December 31, 2022 Using** | **Fair Value Measurements as of December 31, 2022 Using** | **Fair Value Measurements as of December 31, 2022 Using** |
|<br>**Balance Sheet Line Item (in thousands)** |<br>**Fair Value December 31, 2022** | **Level 1** | **Level 2** | **Level 3** |
| Interest rate swaps-Asset | $72223 | $— | $72223 | $— |
| Interest rate swaps-Liability | $— | $— | $— | $— |

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| | | | | |
|:---|:---|:---|:---|:---|
| | | **Fair Value Measurements as of December 31, 2021 Using** | **Fair Value Measurements as of December 31, 2021 Using** | **Fair Value Measurements as of December 31, 2021 Using** |
|<br>**Balance Sheet Line Item (in thousands)** |<br>**Fair Value December 31, 2021** | **Level 1** | **Level 2** | **Level 3** |
| Interest rate swaps-Asset | $5220 | $— | $5220 | $— |
| Interest rate swaps-Liability | $(17052) | $— | $(17052) | $— |

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**6. Equity**

***Preferred Stock***

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

On March 1, 2021, the Company gave notice to redeem all 3,000,000 issued and outstanding shares of the Series C Preferred Stock on March 31, 2021. The Company redeemed the Series C Preferred Stock on March 31, 2021 at a cash redemption price of $25.00 per share, plus accrued and unpaid dividends to, but excluding, the redemption date. The Company recognized a deemed dividend to the holders of the Series C Preferred Stock of approximately $2.6 million on the accompanying Consolidated Statements of Operations for the year ended December 31, 2021 related to redemption costs and the original issuance costs of the Series C Preferred Stock.

***Common Stock***

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

The following table summarizes the terms of the Company's at-the-market ("ATM") common stock offering program as of December 31, 2022.

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| | | | |
|:---|:---|:---|:---|
| **ATM Common Stock Offering Program** | **Date** | **Maximum Aggregate Offering Price (in thousands)** | **Aggregate Available as of December 31, 2022 (in thousands)** |
| 2022 $750 million ATM | February 17, 2022 | $750000 | $750000 |

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The following tables summarize the activity for the ATM common stock offering program during the year ended December 31, 2022 and 2021 (in thousands, except share data).

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| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31, 2022** | **Year ended December 31, 2022** | **Year ended December 31, 2022** |
|<br>**ATM Common Stock Offering Program** | **Shares <br>Sold** | **Weighted Average Price Per Share** | **Net Proceeds (in thousands)** |
| 2019 $600 million ATM<sup>(1)</sup> | 128335 | $45.03 | $5721 |
| **Total/weighted average** | **128335** | $**45.03** | $**5721** |

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(1) This program ended during the quarter ended March 31, 2022.

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| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31, 2021** | **Year ended December 31, 2021** | **Year ended December 31, 2021** |
|<br>**ATM Common Stock Offering Program**<sup>(1)</sup> | **Shares <br>Sold** | **Weighted Average Price Per Share** | **Net Proceeds (in thousands)** |
| 2019 $600 million ATM<sup>(2)</sup> | 5110002 | $37.53 | $189974 |
| **Total/weighted average** | **5110002** | $**37.53** | $**189974** |

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

(2)This program ended during the quarter ended March 31, 2022.

On November 3, 2021, the Company completed an underwritten public offering of an aggregate of 8,000,000 shares of common stock at a price to the underwriters of $41.99 per share, consisting of (i) 5,250,000 shares offered directly by the Company and (ii) 2,750,000 shares offered by the forward dealer in connection with certain forward sales agreements. The offering closed on

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November 8, 2021 and the Company received net proceeds from the sale of shares offered directly by the Company of approximately $220.4 million. On December 1, 2021, the underwriters exercised their option to purchase an additional 1,200,000 offered by the forward dealer in connection with certain forward sales agreements for an offering price of $41.87 per share and the underwriters' option closed on December 3, 2021. On December 27, 2021, the Company partially physically settled the forward sales agreement by issuing 2,750,000 shares of common stock and received net proceeds of approximately $115.0 million. On March 29, 2022, the Company physically settled in full the forward sales agreement by issuing 1,200,000 shares of common stock for net proceeds of approximately $49.7 million, or $41.39 per share.

On April 5, 2021, the Company sold 1,446,760 shares on a forward basis under the ATM common stock offering program at a price of $34.56 per share, or $50.0 million, and $34.2144 per share net of sales agent fees. The Company does not initially receive any proceeds from the sale of shares on a forward basis. On September 29, 2021, the Company physically settled in full the forward sales agreements under the ATM common stock offering program by issuing 1,446,760 shares of common stock and received net proceeds of approximately $48.4 million, or $33.4585 per share.

On November 16, 2020, the Company completed an underwritten public offering of an aggregate of 8,000,000 shares of common stock offered by the forward dealer in connection with certain forward sale agreements at a price to the underwriters of $30.02 per share. On December 15, 2020, the underwriters exercised their option to purchase an additional 1,200,000 shares for an offering price of $29.90 per share. The offering closed on November 19, 2020 and the underwriters' option closed on December 17, 2020. On December 23, 2020, the Company partially physically settled the forward sales agreements by issuing 4,518,077 shares of common stock and received net proceeds of approximately $135.0 million. On September 29, 2021, the Company physically settled in full the forward sales agreements by issuing the remaining 4,681,923 shares of common stock and received net proceeds of approximately $133.8 million, or $28.5791 per share.

On January 13, 2020, the Company completed an underwritten public offering of an aggregate of 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. On December 23, 2020, the Company physically settled the forward sales agreements in full by issuing 4,462,500 shares of common stock and received net proceeds of approximately $131.2 million.

***Restricted Stock-Based Compensation***

Pursuant to the 2011 Plan, the Company grants restricted shares of common stock to certain employees of the Company. The restricted shares of common stock are subject to time-based vesting. Restricted shares of common stock granted in 2022, 2021, and 2020, subject to the recipient's continued employment, will vest over four years in equal installments on January 1 of each year beginning in 2023, 2022, and 2021, respectively. Refer to Note 8 for details on restricted shares of common stock granted in connection with the settlement of certain performance units. Holders of restricted shares of common stock have voting rights and rights to receive dividends. Restricted shares of common stock may not be sold, assigned, transferred, pledged or otherwise disposed of and are subject to a risk of forfeiture prior to the expiration of the applicable vesting period.

The following table summarizes activity related to the Company's unvested restricted shares of common stock during the years ended December 31, 2022, 2021 and 2020.

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| | | |
|:---|:---|:---|
| **Unvested Restricted Shares of Common Stock** | **Shares** | **Weighted Average Grant Date Fair Value per Share** |
| **Balance at December 31, 2019** | **193045** | $24.38 |
| Granted | 75419 | $31.60 |
| Vested<sup>(1)</sup> | (81408) | $23.46 |
| Forfeited | (2166) | $26.92 |
| **Balance at December 31, 2020** | **184890** | $27.70 |
| Granted | 90304 | $29.77 |
| Vested<sup>(1)</sup> | (79140) | $27.01 |
| Forfeited | (10339) | $30.32 |
| **Balance at December 31, 2021** | **185715** | $28.86 |
| Granted | 58580 | $44.19 |
| Vested<sup>(1)</sup> | (73556) | $28.03 |
| Forfeited | (14036) | $36.16 |
| **Balance at December 31, 2022** | **156703** | $34.32 |

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(1)The Company repurchased and retired 25,836, 27,706, and 34,117, restricted shares of common stock that vested during the years ended December 31, 2022, 2021, and 2020, respectively.

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The unrecognized compensation expense associated with the Company's restricted shares of common stock at December 31, 2022 was approximately $3.0 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 restricted shares of common stock that vested during the years ended December 31, 2022, 2021 and 2020.

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| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|<br>**Vested Restricted Shares of Common Stock** | **2022** | **2021** | **2020** |
| Vested restricted shares of common stock | 73556 | 79140 | 81408 |
| Fair value of vested restricted shares of common stock (in thousands) | $3528 | $2581 | $2568 |

---

**7. Noncontrolling Interest**

The following table summarizes the activity for noncontrolling interest in the Company during the years ended December 31, 2022, 2021 and 2020.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Noncontrolling Interest** | **LTIP Units** | **Other <br>Common Units** | **Total <br>Noncontrolling Common Units** | **Noncontrolling Interest Percentage** |
| **Balance at December 31, 2019** | **1697358** | **2039494** | **3736852** | 2.5% |
| Granted/Issued | 278806 |  | 278806 | N/A |
| Forfeited |  |  |  | N/A |
| Conversions from LTIP units to Other Common Units | (283741) | 283741 |  | N/A |
| Redemptions from Other Common Units to common stock |  | (730420) | (730420) | N/A |
| **Balance at December 31, 2020** | **1692423** | **1592815** | **3285238** | 2.0% |
| Granted/Issued | 405844 |  | 405844 | N/A |
| Forfeited |  |  |  | N/A |
| Conversions from LTIP units to Other Common Units | (149143) | 149143 |  | N/A |
| Redemptions from Other Common Units to common stock |  | (171318) | (171318) | N/A |
| **Balance at December 31, 2021** | **1949124** | **1570640** | **3519764** | 1.9% |
| Granted/Issued | 470237 |  | 470237 | N/A |
| Forfeited | (6791) |  | (6791) | N/A |
| Conversions from LTIP units to Other Common Units | (98494) | 98494 |  | N/A |
| Redemptions from Other Common Units to common stock |  | (98494) | (98494) | N/A |
| **Balance at December 31, 2022** | **2314076** | **1570640** | **3884716** | 2.1% |

---

The Company adjusts the carrying value of noncontrolling interest to reflect its share of the book value of the Operating Partnership when there has been a change in the Company's ownership of the Operating Partnership. Such adjustments are recorded to additional paid-in capital as a rebalancing of noncontrolling interest on the accompanying Consolidated Statements of Equity.

***LTIP Units***

LTIP units are granted to certain executive officers and senior employees of the Company as part of their compensation, and to independent directors for their service. LTIP units are valued by reference to the value of the Company's common stock and are subject to such conditions and restrictions as the compensation committee of the board of directors may determine, including continued employment or service. Vested LTIP units can be converted to Other Common Units on a one-for-one basis once an equity transaction has occurred that results in the accretion of the member's capital account to the economic equivalent of an Other Common Unit. All LTIP units, whether vested or not, will receive the same monthly per unit distributions as Other Common Units, which equal per share dividends on common stock.

LTIP units granted in January 2022, 2021, and 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, 2022, 2021, and 2020, respectively. LTIP units granted in January 2022, 2021, and 2020 to independent directors, subject to the recipient's continued service, will vest on January 1, 2023, 2022, and 2021, respectively.

Refer to Note 8 for a discussion of the LTIP units granted in January 2023, 2022, and 2021, pursuant to the January 2020, 2019, and 2018 performance units, respectively.

------

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 is based on Level 3 inputs and is a non-recurring fair value measurement. The following table summarizes the assumptions used in valuing such LTIP units granted during the years ended December 31, 2022, 2021 and 2020 (excluding those LTIP units granted pursuant to the settlements of performance units; refer to Note 8 for details).

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|<br>**LTIP Units Granted and Assumptions** | **2022** | **2021** | **2020** |
| Grant date | January 10, 2022 | January 7, 2021 | January 8, 2020 |
| Expected term (years) | 10 | 10 | 10 |
| Expected stock price volatility | 34.0% | 34.0% | 18.0% |
| Expected dividend yield | 4.0% | 5.0% | 5.75% |
| Risk-free interest rate | 1.204% | 0.229% | 1.61% |
| Fair value of LTIP units at issuance (in thousands) | $4385 | $4316 | $4030 |
| LTIP units at issuance | 104241 | 153430 | 136741 |
| Fair value unit price per LTIP unit at issuance | $42.07 | $28.13 | $29.47 |

---

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

On August 17, 2021, the Company and David G. King, the Company's Executive Vice President and Director of Real Estate Operations, agreed that Mr. King's employment with the Company would terminate effective September 17, 2021. Pursuant to the terms and conditions of the executive employment agreement and the several LTIP unit agreements and performance award agreements between the Company and Mr. King, Mr. King received a severance package from the Company, including a lump sum cash payment, the continuation of certain insurance benefits, immediate vesting of outstanding LTIP units and eligibility to receive a pro-rated award payment for outstanding performance units. Accordingly, the Company accelerated the expense recognition of Mr. King's unvested LTIP units in the amount of approximately $0.5 million, which is included in general and administrative expenses for the year ended December 31, 2021 on the accompanying Consolidated Statements of Operations. Additionally, the unrecognized compensation expense associated with Mr. King's performance units will not be recognized. The Company also incurred approximately $1.6 million related to the lump sum cash payment and continuation of certain insurance benefits, which is included in general and administrative expenses during the year ended December 31, 2021 on the accompanying Consolidated Statements of Operations. On October 15, 2021, Mr. King received 57,100 shares of common stock for his pro-rated award payment for outstanding performance units.

The following table summarizes activity related to the Company's unvested LTIP units during the years ended December 31, 2022, 2021 and 2020.

---

| | | |
|:---|:---|:---|
| **Unvested LTIP Units** | **LTIP Units** | **Weighted Average Grant Date Fair Value per Share** |
| **Balance at December 31, 2019** | **227348** | $23.37 |
| Granted | 278806 | $29.47 |
| Vested | (294706) | $26.87 |
| Forfeited |  | $— |
| **Balance at December 31, 2020** | **211448** | $26.54 |
| Granted | 405844 | $28.13 |
| Vested | (427184) | $27.47 |
| Forfeited |  | $— |
| **Balance at December 31, 2021** | **190108** | $27.84 |
| Granted | 470237 | $42.07 |
| Vested | (513438) | $38.67 |
| Forfeited | (6791) | $34.02 |
| **Balance at December 31, 2022** | **140116** | $35.60 |

---

The unrecognized compensation expense associated with the Company's LTIP units at December 31, 2022 was approximately $2.6 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 years ended December 31, 2022, 2021 and 2020.

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|<br>**Vested LTIP units** | **2022** | **2021** | **2020** |
| Vested LTIP units | 513438 | 427184 | 294706 |
| Fair value of vested LTIP units (in thousands) | $21662 | $16390 | $8805 |

---

***Other Common Units***

Other Common Units and shares of the Company's common stock have essentially the same economic characteristics in that Other Common Units directly, and shares of the Company's common stock indirectly, through the Company's interest in the Operating Partnership, share equally in the total net income or loss distributions of the Operating Partnership. Subject to certain restrictions, investors who own Other Common Units have the right to cause the Operating Partnership to redeem any or all of their Other Common Units for cash equal to the then-current value of one share of the Company's common stock, or, at the Company's election, shares of common stock on a one-for-one basis. When redeeming the Other Common Unit for cash, the value of a share of common stock is calculated as the average common stock closing price on the NYSE for the 10 days immediately preceding the redemption notice date. Each Other Common Unit receives the same monthly distribution as a share of common stock.

**8. Equity Incentive Plan**

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

Subject to certain adjustments identified within the 2011 Plan, the aggregate number of shares of the Company's common stock that may be awarded under the 2011 Plan is 6,642,461 shares. Under the 2011 Plan, each LTIP unit awarded will be equivalent to an award of one share of common stock reserved under the 2011 Plan, thereby reducing the number of shares of common stock available for other equity awards on a one-for-one basis.

The 2011 Plan may be terminated, amended, modified or suspended at any time by the board of directors, subject to stockholder approval as required by law or stock exchange rules. The 2011 Plan expires on April 30, 2028.

Under the 2011 Plan, the Company grants performance units to certain key employees of the Company. The ultimate value of the performance units depends on the Company's total stockholder return ("TSR") over a three-year period (the "measuring period"). At the end of the measuring period, the performance units convert into shares of common stock, or, at the Company's election and with the award recipient's consent, LTIP units or other securities ("Award Shares"), at a rate depending on the Company's TSR over the measuring period as compared to three different benchmarks and on the absolute amount of the Company's TSR. A recipient of performance units may receive as few as zero shares or as many as 250% of the number of target units, plus deemed dividends. The target amount of the performance units is nominally allocated as: (i) 25% to the Company's TSR compared to the TSR of an industry peer group; (ii) 25% to the Company's TSR compared to the TSR of a size-based peer group; and (iii) 50% to the Company's TSR compared to the TSR of the companies in the MSCI US REIT index.

No dividends are paid to the recipient during the measuring period. At the end of the measuring period, if the Company's TSR is such that the recipient earns Award Shares, the recipient will receive additional Award Shares relating to dividends deemed to have been paid and reinvested on the Award Shares. The Company, in the discretion of the compensation committee of the board of directors, may pay the cash value of the deemed dividends instead of issuing additional Award Shares. The Award Shares are immediately vested at the end of the measuring period.

In January 2022, 2021, and 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 measuring periods commenced on January 1, 2022, 2021, and 2020, respectively, and end on December 31, 2024, 2023, and 2022, respectively.

------

The fair value of the performance units as of the grant date was determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation. The fair value of the performance units is based on Level 3 inputs and non-recurring fair value measurements. The performance unit equity compensation expense is recognized ratably from the grant date into earnings over the respective vesting periods. The following table summarizes the assumptions used in valuing the performance units granted during the years ended December 31, 2022, 2021 and 2020.

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|<br>**Performance Units Granted Assumptions** | **2022** | **2021** | **2020** |
| Grant date | January 10, 2022 | January 7, 2021 | January 8, 2020 |
| Expected stock price volatility | 34.1% | 34.4% | 17.4% |
| Expected dividend yield | 4.0% | 5.0% | 5.75% |
| Risk-free interest rate | 1.1979% | 0.2271% | 1.59% |
| Fair value of performance units grant (in thousands) | $6289 | $5522 | $5389 |

---

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

During the years ended December 31, 2022, 2021, and 2020, it was determined that the Company's total stockholder return exceeded the threshold percentage and return hurdle for each of the 2020, 2019, and 2018 performance units, respectively. The following table summarizes the compensation committee of the board of directors approved issuances of LTIP units and shares of common stock for the conclusion of the measuring periods for performance units for the years ended December 31, 2022, 2021, and 2020.

---

| | | | |
|:---|:---|:---|:---|
| **Settlement of Performance Units in LTIP Units or Shares of Common Stock** | **2020 Performance Units** | **2019 Performance Units** | **2018 Performance Units**<sup>(1)</sup> |
| Measuring period conclusion date | December 31, 2022 | December 31, 2021 | December 31, 2020 |
| Issuance date | January 11, 2023 | January 10, 2022 | January 7, 2021 |
| Vested LTIP units | 167844 | 365996 | 127671 |
| Vested shares of common stock | 40660 | 27934 | 44591 |
| Shares of common stock repurchased and retired | 875 | 8257 | 17731 |

---

(1)The compensation committee of the board of directors also approved the issuance of 124,743 LTIP units and 6,352 restricted shares of common stock that vested in one year on December 31, 2021.

The unrecognized compensation expense associated with the Company's performance units at December 31, 2022 was approximately $5.0 million and is expected to be recognized over a weighted average period of approximately 1.7 years.

At December 31, 2022 and 2021, the number of shares available for issuance under the 2011 Plan were 1,269,097 and 1,634,019, respectively. The number of shares available for issuance under the 2011 Plan as of December 31, 2022 do not include an allocation for the 2022 and 2021 performance units as the awards were not determinable as of December 31, 2022. The number of shares available for issuance under the 2011 Plan as of December 31, 2021 do not include an allocation for the 2021 and 2020 performance units as the awards were not determinable as of December 31, 2021.

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***Non-cash Compensation Expense***

The following table summarizes the amounts 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 years ended December 31, 2022, 2021 and 2020.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| **Non-Cash Compensation Expense (in thousands)** | **2022** | **2021** |  | **2020** |
| &nbsp;&nbsp;&nbsp;Restricted shares of common stock | $2103 | $2236 |  | $1924 |
| &nbsp;&nbsp;&nbsp;LTIP units | 3996 | 6489 | (1) | 3903 |
| &nbsp;&nbsp;&nbsp;Performance units | 5423 | 5730 |  | 5358 |
| &nbsp;&nbsp;Director compensation<sup>(2)</sup> | 504 | 488 |  | 496 |
| **Total non-cash compensation expense** | $**12026** | $**14943** |  | $**11681** |

---

(1)Inclusive of approximately $0.5 million non-cash compensation expense during the year ended December 31, 2021 associated with the severance cost of an executive officer, as discussed in Note 7.

(2)All of the Company's independent directors elected to receive shares of common stock in lieu of cash for their service during the years ended December 31, 2022, 2021 and 2020. The number of shares of common stock granted was calculated based on the trailing 10 days average common stock price on the third business day preceding the grant date.

**9. Leases**

*Lessor Leases*

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

The following table summarizes the components of rental income included in the accompanying Consolidated Statements of Operations for the years ended December 31, 2022, 2021 and 2020.

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|<br>**Rental Income (in thousands)** | **2022** | **2021** | **2020** |
| Fixed lease payments | $500267 | $424356 | $371088 |
| Variable lease payments | 135888 | 118584 | 103389 |
| Straight-line rental income | 17893 | 18565 | 12711 |
| Net increase (decrease) to rental income related to above and below market lease amortization | 329 | (2073) | (4363) |
| &nbsp;&nbsp;&nbsp;**Total rental income** | $**654377** | $**559432** | $**482825** |

---

As of December 31, 2022 and December 31, 2021, the Company had accrued rental income of approximately $91.2 million and $75.8 million, respectively, included in tenant accounts receivable on the accompanying Consolidated Balance Sheets.

As of December 31, 2022 and December 31, 2021, the Company's total liability associated with tenant lease security deposits was approximately $19.1 million and $15.2 million, respectively, which is included in tenant prepaid rent and security deposits on the accompanying Consolidated Balance Sheets.

The following table summarizes the maturity of fixed lease payments under the Company's leases as of December 31, 2022.

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| | |
|:---|:---|
| **Year** | **Maturity of Fixed Lease Payments (in thousands)** |
| 2023 | $519937 |
| 2024 | $482016 |
| 2025 | $424221 |
| 2026 | $347440 |
| 2027 | $271204 |
| Thereafter | $844941 |

---

------

*Lessee Leases*

The Company has operating leases in which it is the lessee for its ground leases and corporate office leases. These leases have remaining lease terms of approximately 0.4 years to 47.7 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 December 31, 2022 and December 31, 2021.

---

| | | |
|:---|:---|:---|
| **Operating Lease Term and Discount Rate** | **December 31, 2022** | **December 31, 2021** |
| Weighted average remaining lease term (years) | 31.2 | 29.0 |
| Weighted average discount rate | 6.7% | 6.6% |

---

The following table summarizes the operating lease cost included in the Company's Consolidated Statements of Operations for the years ended December 31, 2022, 2021 and 2020.

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|<br>**Operating Lease Cost (in thousands)** | **2022** | **2021** | **2020** |
| Operating lease cost included in property expense attributable to ground leases | $2372 | $1740 | $1424 |
| Operating lease cost included in general and administrative expense attributable to corporate office leases | 1747 | 1735 | 1592 |
| &nbsp;&nbsp;&nbsp;**Total operating lease cost** | $**4119** | $**3475** | $**3016** |

---

The following table summarizes supplemental cash flow information related to operating leases in the Company's Consolidated Statements of Cash Flows for the years ended December 31, 2022, 2021 and 2020.

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| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|<br>**Operating Leases (in thousands)** | **2022** | **2021** | **2020** |
| Cash paid for amounts included in the measurement of lease liabilities (operating cash flows) | $3784 | $2426 | $2355 |
| Right-of-use assets obtained in exchange for new lease liabilities | $— | $146 | $7718 |

---

The following table summarizes the maturity of operating lease liabilities under the Company's ground leases and corporate office leases as of December 31, 2022.

---

| | |
|:---|:---|
| **Year** | **Maturity of Operating Lease Liabilities**<sup>(1)</sup><br>**(in thousands)**  |
| 2023 | $3875 |
| 2024 | 3914 |
| 2025 | 3959 |
| 2026 | 2993 |
| 2027 | 2023 |
| Thereafter | 81962 |
| &nbsp;&nbsp;&nbsp;Total lease payments | 98726 |
| Less: Imputed interest | (63626) |
| &nbsp;&nbsp;&nbsp;**Present value of operating lease liabilities** | $**35100** |

---

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

**10. Earnings Per Share**

Under the two-class method of computing earnings per share, restricted shares of common stock are considered participating securities as these stock-based awards contain non-forfeitable rights to dividends, unless and until a forfeiture occurs, and these awards must be included in the computation of earnings per share pursuant to the two-class method. During the years ended December 31, 2022, 2021 and 2020, there were 161,704, 198,171 and 187,283, respectively, unvested shares of restricted stock on a weighted average basis that were considered participating securities. Participating securities are included in the computation of diluted earnings per share using the treasury stock method if the impact is more dilutive than the two-class method. Other potentially dilutive shares of common stock from the Company's performance units and forward sales agreements are considered when calculating diluted earnings per share.

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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 years ended December 31, 2022, 2021 and 2020.

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| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|<br>**Earnings Per Share (in thousands, except per share data)** | **2022** | **2021** | **2020** |
| **Numerator** |  |  |  |
| Net income attributable to common stockholders | $178089 | $188175 | $196720 |
| **Denominator** |  |  |  |
| Weighted average common shares outstanding — basic | 178753 | 163442 | 148791 |
| **Effect of dilutive securities**<sup>(1)</sup> |  |  |  |
| &nbsp;&nbsp;&nbsp;Share-based compensation | 187 | 640 | 412 |
| &nbsp;&nbsp;Shares issuable under forward sales agreements |  | 8 | 12 |
| Weighted average common shares outstanding — diluted | 178940 | 164090 | 149215 |
| **Net income per share — basic and diluted** |  |  |  |
| Net income per share attributable to common stockholders — basic | $1.00 | $1.15 | $1.32 |
| Net income per share attributable to common stockholders — diluted | $1.00 | $1.15 | $1.32 |

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(1)During the years ended December 31, 2022, 2021, and 2020, there were 162, 198, and 187, unvested restricted shares of common stock (on a weighted average basis), respectively, that were not included in the computation of diluted earnings per share because the allocation of income under the two-class method was more dilutive.

**11. Commitments and Contingencies**

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

The Company has letters of credit of approximately $3.6 million as of December 31, 2022 related to construction projects and certain other agreements.

**12. Employee Benefit Plans**

Effective April 20, 2011, the Company adopted a 401(k) Defined Contribution Savings Plan (the "Plan") for its employees. Under the Plan, as amended, employees, as defined, are eligible to participate in the Plan after they have completed three months of service. The Company provides a discretionary match of 50% of the employee's contributions annually up to 6.0% of the employee's annual compensation, subject to a cap imposed by federal tax law. The Company's aggregate matching contribution for the years ended December 31, 2022, 2021 and 2020 was approximately $0.5 million, $0.5 million and $0.3 million, respectively. The Company's contribution is subject to vest over three years, such that employees who have been with the Company for three years are fully vested in past and future contributions.

**13. Subsequent Events**

The Company identified the following events subsequent to December 31, 2022 that are not recognized in the financial statements.

On January 5, 2023, the Company redeemed in full at maturity the $100.0 million in aggregate principal amount of the Series F Unsecured Notes with a fixed interest rate of 3.98%.

On January 11, 2023, the Company granted 55,954 restricted shares of common stock to certain employees of the Company pursuant to the 2011 Plan. The restricted shares of common stock granted will vest over four years in equal installments on January 1 of each year beginning January 1, 2024. The fair value of the restricted shares of common stock at the date of grant was $34.73 per share.

On January 11, 2023, the Company granted 26,392 LTIP units to non-employee, independent directors and 112,634 LTIP units to certain executive officers and senior employees pursuant to the 2011 Plan. The LTIP units granted to non-employee, independent directors will vest on January 1, 2024. The LTIP units granted to certain executive officers and senior employees will vest in equal quarterly installments over four years, with the first vesting date being March 31, 2023. The aggregate fair value of the LTIP units at the date of grant was approximately $4.6 million, as determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation using an expected term of ten years, a weighted average volatility factor of 37.0%, a

------

weighted average expected dividend yield of 4.0%, and a weighted average risk-free interest rate of 3.9%. The fair value of the LTIP units is based on Level 3 inputs and is a non-recurring fair value measurement.

On January 11, 2023, the Company granted performance units to certain executive officers and senior employees pursuant to the 2011 Plan. The terms of the January 11, 2023 performance units are substantially the same as the performance units discussed in Note 8, except that the measuring period commenced on January 1, 2023 and ends on December 31, 2025, and the size-based peer group was eliminated. The target amount of the performance units granted on January 11, 2023 is nominally allocated as: (i) 50% to the Company's TSR compared to the TSR of an industry peer group; and (ii) 50% to the Company's TSR compared to the TSR of the companies in the MSCI US REIT index. The aggregate fair value of the performance units at the date of grant was approximately $4.5 million, as determined by a lattice-binomial option-pricing model based on a Monte Carlo simulation using a weighted average volatility factor of 37.4%, a weighted average expected dividend yield of 4.0%, and a weighted average risk-free interest rate of 3.906%. The fair value of the performance units is based on Level 3 inputs and is a non-recurring fair value measurement.

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**STAG Industrial, Inc.**

**Schedule III—Real Estate and Accumulated Depreciation**

**December 31, 2022** 

**(in thousands)**

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | **Initial Cost to STAG Industrial, Inc.** | **Initial Cost to STAG Industrial, Inc.** | | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | | |
|<br>**State & City** |<br>**Address** |<br>**Encumbrances**<sup>(1)</sup> | **Building & Improvements**<sup>(2)</sup> | **Land**<sup>(3)</sup> |<br>**Costs Capitalized Subsequent to Acquisition and Valuation Provision** | **Building & Improvements** | **Land** | **Total** |<br>**Accumulated Depreciation**<sup>(4)</sup> |<br>**Year Acquired** |
| **Alabama** | | | | | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Birmingham | 103 Shades Creek Circle | $— | $6779 | $1307 | $97 | $6876 | $1307 | $8183 | $(472) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Birmingham | 2991 Shannon Oxmoor Road |  | 5828 | 1341 |  | 5828 | 1341 | 7169 | (375) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Birmingham | 101 39th Street North |  | 6239 | 590 |  | 6239 | 590 | 6829 | (129) | 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Birmingham | 101 Shades Creek Circle |  | 3958 | 836 | 167 | 4125 | 836 | 4961 | (281) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Montgomery | 4300 Alatex Road |  | 7523 | 418 | 1789 | 9312 | 418 | 9730 | (2269) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Moody | 2415 Highway 78 East |  | 31546 | 2293 | 262 | 31808 | 2293 | 34101 | (1595) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Phenix City | 16 Downing Drive |  | 1415 | 276 | 280 | 1695 | 276 | 1971 | (525) | 2012 |
| **Arizona** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Avondale | 925 N. 127th Avenue |  | 13163 | 1674 | 28 | 13191 | 1674 | 14865 | (2260) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Chandler | 464 E. Chilton Drive |  | 9728 | 2847 | 671 | 10399 | 2847 | 13246 | (676) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gilbert | 335 South Hamilton Court |  | 5784 | 2107 | 240 | 6024 | 2107 | 8131 | (302) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mesa | 7447 E. Ray Road |  | 7930 | 1277 | 311 | 8241 | 1277 | 9518 | (534) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tucson | 6161 South Palo Verde Road |  | 8037 | 996 | 107 | 8144 | 996 | 9140 | (1357) | 2018 |
| **Arkansas** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bryant | 3700 Bryant Crossing Drive |  | 17386 | 1143 |  | 17386 | 1143 | 18529 | (990) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Rogers | 8th and Easy Street |  | 7878 | 1072 | 1625 | 9503 | 1072 | 10575 | (2669) | 2011 |
| **California** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fresno | 2624 E. Edgar Avenue |  | 23590 | 3049 |  | 23590 | 3049 | 26639 | (392) | 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hollister | 2401 Bert Drive |  | 26049 | 2913 |  | 26049 | 2913 | 28962 | (431) | 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lodi | 1170 South Guild Avenue |  | 34550 | 4975 |  | 34550 | 4975 | 39525 | (2301) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;McClellan | 4841 Urbani Avenue |  | 14582 | 1048 |  | 14582 | 1048 | 15630 | (1320) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Morgan Hill | 18695 Madrone Parkway |  | 7608 | 2562 |  | 7608 | 2562 | 10170 | (280) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Morgan Hill | 18255 Sutter Boulevard |  | 19849 | 3943 |  | 19849 | 3943 | 23792 | (833) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Rancho Cordova | 2587 Mercantile Drive |  | 4346 | 678 | 33 | 4379 | 678 | 5057 | (269) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Rancho Cordova | 2431 Mercantile Drive |  | 4747 | 498 | 322 | 5069 | 498 | 5567 | (405) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Roseville | 8825 Washington Boulevard |  | 11411 | 2140 |  | 11411 | 2140 | 13551 | (561) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sacramento | 1635 Main Avenue |  | 8609 | 845 | 160 | 8769 | 845 | 9614 | (574) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sacramento | 5440 Stationers Way |  | 21258 | 2203 | 150 | 21408 | 2203 | 23611 | (1355) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sacramento | 5601 Warehouse Way |  | 8137 | 1347 | 804 | 8941 | 1347 | 10288 | (332) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sacramento | 8500 Carbide Court |  | 5231 | 1614 |  | 5231 | 1614 | 6845 | (190) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sacramento | 8440 Florin Road |  | 12184 | 3921 |  | 12184 | 3921 | 16105 | (517) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sacramento | 900 National Drive |  | 7560 | 1479 |  | 7560 | 1479 | 9039 | (273) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sacramento | 7728 Wilbur Way |  | 9225 | 857 |  | 9225 | 857 | 10082 | (1016) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;San Diego | 2055 Dublin Drive |  | 14895 | 2290 | 322 | 15217 | 2290 | 17507 | (2631) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stockton | 4091 Gold River Lane |  | 4133 | 663 |  | 4133 | 663 | 4796 | (282) | 2020 |

---

------

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | **Initial Cost to STAG Industrial, Inc.** | **Initial Cost to STAG Industrial, Inc.** | | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | | |
|<br>**State & City** |<br>**Address** |<br>**Encumbrances**<sup>(1)</sup> | **Building & Improvements**<sup>(2)</sup> | **Land**<sup>(3)</sup> |<br>**Costs Capitalized Subsequent to Acquisition and Valuation Provision** | **Building & Improvements** | **Land** | **Total** |<br>**Accumulated Depreciation**<sup>(4)</sup> |<br>**Year Acquired** |
| &nbsp;&nbsp;&nbsp;&nbsp;Stockton | 3841 Metro Drive |  | 12552 | 1806 | 524 | 13076 | 1806 | 14882 | (644) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stockton | 3843 Gold River Lane |  | 4136 | 660 |  | 4136 | 660 | 4796 | (281) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;West Sacramento | 3525 Carlin Drive |  | 33707 | 4350 |  | 33707 | 4350 | 38057 |  | 2021 |
| **Colorado** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Grand Junction | 2139 Bond Street |  | 4002 | 314 |  | 4002 | 314 | 4316 | (924) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Johnstown | 4150 Ronald Reagan Boulevard |  | 14964 | 1133 | 27 | 14991 | 1133 | 16124 | (1341) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Longmont | 4300 Godding Hollow Parkway |  | 5322 | 734 | 903 | 6225 | 734 | 6959 | (837) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loveland | 4550 Byrd Drive |  | 16591 | 3452 | 136 | 16727 | 3452 | 20179 | (623) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loveland | 4510 Byrd Drive |  | 14134 | 3047 | 2928 | 17062 | 3047 | 20109 | (623) | 2021 |
| **Connecticut** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Avon | 60 Security Drive |  | 1282 | 107 | 239 | 1521 | 107 | 1628 | (802) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;East Windsor | 4 Craftsman Road |  | 5711 | 400 | 191 | 5902 | 400 | 6302 | (1296) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;East Windsor | 24 Thompson Road |  | 4571 | 348 | 1182 | 5753 | 348 | 6101 | (1854) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Milford | 200 Research Drive |  | 13853 | 1650 | 236 | 14089 | 1650 | 15739 | (501) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Milford | 40 Pepes Farm Road |  | 10040 | 1264 | 1038 | 11078 | 1264 | 12342 | (2308) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;North Haven | 300 Montowese Avenue Extension |  | 39253 | 4086 | 4513 | 43766 | 4086 | 47852 | (10599) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wallingford | 5 Sterling Drive |  | 6071 | 585 | 317 | 6388 | 585 | 6973 | (1138) | 2017 |
| **Delaware** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;New Castle | 400 Lukens Drive |  | 17767 | 2616 | 198 | 17965 | 2616 | 20581 | (4735) | 2016 |
| **Florida** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Daytona Beach | 530 Fentress Boulevard |  | 875 | 1237 | 2381 | 3256 | 1237 | 4493 | (1504) | 2007 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fort Myers | 16341 Domestic Avenue |  | 22005 | 2729 |  | 22005 | 2729 | 24734 | (1332) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Jacksonville | 775 Whittaker Road |  | 3391 | 451 | 415 | 3806 | 451 | 4257 | (835) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Jacksonville | 9601 North Main Street |  | 7803 | 650 | 640 | 8443 | 650 | 9093 | (1712) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Jacksonville | 550 Gun Club Road |  | 7837 | 674 | 1557 | 9394 | 674 | 10068 | (1953) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Jacksonville | 555 Zoo Parkway |  | 7025 | 596 | 1016 | 8041 | 596 | 8637 | (1634) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Jacksonville | 9779 Pritchard Road |  | 14319 | 1284 | 1418 | 15737 | 1284 | 17021 | (1705) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lake Worth | 2230 4th Avenue North |  | 2530 | 1533 |  | 2530 | 1533 | 4063 | (182) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lake Worth | 3600 23rd Avenue South |  | 4729 | 1502 |  | 4729 | 1502 | 6231 | (311) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lake Worth | 2269 4th Avenue North |  | 4751 | 2254 |  | 4751 | 2254 | 7005 | (337) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lakeland | 4675 Drane Field Road |  | 13060 | 1099 |  | 13060 | 1099 | 14159 | (883) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ocala | 650 Southwest 27th Avenue |  | 13257 | 731 | 2902 | 16159 | 731 | 16890 | (4002) | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Orlando | 1854 Central Florida Parkway |  | 4814 | 1339 | 1530 | 6344 | 1339 | 7683 | (1422) | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Orlando | 7050 Overland Road |  | 1996 | 721 |  | 1996 | 721 | 2717 | (674) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tampa | 4330 Williams Road |  | 6390 | 829 | 71 | 6461 | 829 | 7290 | (787) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;West Palm Beach | 4268 Westroads Drive |  | 6835 | 2906 | 600 | 7435 | 2906 | 10341 | (481) | 2020 |
| **Georgia** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Atlanta | 4200 SW Shirley Drive |  | 8382 | 1679 | 542 | 8924 | 1679 | 10603 | (124) | 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Augusta | 1816 Tobacco Road |  | 6249 | 937 |  | 6249 | 937 | 7186 | (1127) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Buford | 4823 Roy Carlson Boulevard |  | 9195 | 1061 | 985 | 10180 | 1061 | 11241 | (300) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Calhoun | 103 Enterprise Drive |  | 2743 | 388 | 79 | 2822 | 388 | 3210 | (678) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dallas | 351 Thomas D. Murphy Drive |  | 1712 | 475 |  | 1712 | 475 | 2187 | (599) | 2012 |

---

------

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | **Initial Cost to STAG Industrial, Inc.** | **Initial Cost to STAG Industrial, Inc.** | | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | | |
|<br>**State & City** |<br>**Address** |<br>**Encumbrances**<sup>(1)</sup> | **Building & Improvements**<sup>(2)</sup> | **Land**<sup>(3)</sup> |<br>**Costs Capitalized Subsequent to Acquisition and Valuation Provision** | **Building & Improvements** | **Land** | **Total** |<br>**Accumulated Depreciation**<sup>(4)</sup> |<br>**Year Acquired** |
| &nbsp;&nbsp;&nbsp;&nbsp;Forest Park | 5345 Old Dixie Highway |  | 8189 | 1715 | 1396 | 9585 | 1715 | 11300 | (2129) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lithonia | 1995 Lithonia Industrial Boulevard |  | 18052 | 943 | 197 | 18249 | 943 | 19192 | (395) | 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Norcross | 4075 Blue Ridge Industrial Parkway |  | 2415 | 1589 | 2485 | 4900 | 1589 | 6489 | (744) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Savannah | 1086 Oracal Parkway |  | 13034 | 439 | 119 | 13153 | 439 | 13592 | (3174) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shannon | 212 Burlington Drive |  | 12949 | 393 | 154 | 13103 | 393 | 13496 | (3247) | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Smyrna | 3500 Highlands Parkway |  | 3092 | 264 | 1722 | 4814 | 264 | 5078 | (1065) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Statham | 1965 Statham Drive |  | 6130 | 588 | 1258 | 7388 | 588 | 7976 | (2187) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stone Mountain | 1635 Stone Ridge Drive |  | 2548 | 612 | 780 | 3328 | 612 | 3940 | (663) | 2017 |
| **Idaho** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Idaho Falls | 3900 South American Way |  | 2712 | 356 | 71 | 2783 | 356 | 3139 | (773) | 2013 |
| **Illinois** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bartlett | 1590 W. Stearns Road |  | 19493 | 2198 | 449 | 19942 | 2198 | 22140 | (910) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Batavia | 1100 North Raddant Road |  | 7763 | 1124 |  | 7763 | 1124 | 8887 | (505) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Batavia | 1862 Suncast Lane |  | 4427 | 598 | 274 | 4701 | 598 | 5299 | (191) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Batavia | 1100 Paramount Parkway |  | 4238 | 618 |  | 4238 | 618 | 4856 | (845) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Belvidere | 3458 Morreim Drive |  | 4083 | 442 | 255 | 4338 | 442 | 4780 | (1107) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Belvidere | 775 Logistics Drive |  | 16914 | 2341 | 31 | 16945 | 2341 | 19286 | (3377) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Belvidere | 725 Landmark Drive |  | 3485 | 538 | 121 | 3606 | 538 | 4144 | (896) | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Belvidere | 888 Landmark Drive |  | 6824 | 670 | 78 | 6902 | 670 | 7572 | (1687) | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Belvidere | 3915 & 3925 Morreim Drive |  | 4291 | 668 |  | 4291 | 668 | 4959 | (1095) | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Belvidere | 725 & 729 Logistics Drive |  | 3699 | 866 | 274 | 3973 | 866 | 4839 | (1123) | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Belvidere | 857 Landmark Drive |  | 8269 | 1542 | 1665 | 9934 | 1542 | 11476 | (2648) | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Belvidere | 984 Landmark Drive |  | 71 | 216 |  | 71 | 216 | 287 | (71) | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cary | 680 Industrial Drive |  | 3331 | 498 | 16 | 3347 | 498 | 3845 | (228) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Crystal Lake | 220 Exchange Drive |  | 8465 | 1343 | 69 | 8534 | 1343 | 9877 | (409) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Crystal Lake | 300 Exchange Drive |  | 9742 | 1568 |  | 9742 | 1568 | 11310 | (467) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Crystal Lake | 450 Congress Parkway |  | 8861 | 1456 | 8 | 8869 | 1456 | 10325 | (452) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Crystal Lake | 215 Exchange Drive |  | 10737 | 1790 |  | 10737 | 1790 | 12527 | (504) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;DeKalb | 1085 Peace Road |  | 4505 | 489 |  | 4505 | 489 | 4994 | (1296) | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Elgin | 1360 Madeline Lane |  | 19754 | 1135 | 60 | 19814 | 1135 | 20949 | (668) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Elgin | 1385 Madeline Lane |  | 15366 | 1057 | 213 | 15579 | 1057 | 16636 | (565) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Elgin | 1690 Cambridge Drive |  | 3332 | 270 |  | 3332 | 270 | 3602 | (121) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Elmhurst | 934 North Church Road |  | 6326 | 874 |  | 6326 | 874 | 7200 | (194) | 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gurnee | 3818 Grandville Avenue & 1200 Northwestern Avenue |  | 11231 | 1716 | 1272 | 12503 | 1716 | 14219 | (3019) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Harvard | 875 West Diggins Street |  | 2875 | 1157 | 695 | 3570 | 1157 | 4727 | (1115) | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hodgkins | 6600 River Road |  | 30599 | 2570 |  | 30599 | 2570 | 33169 | (1877) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hodgkins | 6620 River Road |  | 6163 | 3127 |  | 6163 | 3127 | 9290 | (291) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Itasca | 1251 W. Ardmore Avenue |  | 3621 | 1223 |  | 3621 | 1223 | 4844 | (162) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Itasca | 1500 Bryn Mawr Avenue |  | 3871 | 2073 |  | 3871 | 2073 | 5944 | (193) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Itasca | 1800 Bruning Drive |  | 12216 | 2428 | 1224 | 13440 | 2428 | 15868 | (3270) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lisle | 4925 Indiana Avenue |  | 8368 | 2302 |  | 8368 | 2302 | 10670 | (1017) | 2019 |

---

------

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | **Initial Cost to STAG Industrial, Inc.** | **Initial Cost to STAG Industrial, Inc.** | | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | | |
|<br>**State & City** |<br>**Address** |<br>**Encumbrances**<sup>(1)</sup> | **Building & Improvements**<sup>(2)</sup> | **Land**<sup>(3)</sup> |<br>**Costs Capitalized Subsequent to Acquisition and Valuation Provision** | **Building & Improvements** | **Land** | **Total** |<br>**Accumulated Depreciation**<sup>(4)</sup> |<br>**Year Acquired** |
| &nbsp;&nbsp;&nbsp;&nbsp;Machesney Park | 7166 Greenlee Drive |  | 3525 | 300 | 43 | 3568 | 300 | 3868 | (829) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;McHenry | 831/833 Ridgeview Drive |  | 3818 | 576 | 120 | 3938 | 576 | 4514 | (703) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;McHenry | 921 Ridgeview Drive |  | 4010 | 448 | 27 | 4037 | 448 | 4485 | (675) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Montgomery | 2001 Baseline Road |  |  | 173 |  |  | 173 | 173 |  | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Montgomery | 2001 Baseline Road |  | 12373 | 2190 | 2996 | 15369 | 2190 | 17559 | (4302) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Saint Charles | 3810-3820 Stern Avenue |  | 7028 | 1321 |  | 7028 | 1321 | 8349 | (248) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Saint Charles | 3850 Ohio Avenue |  | 5976 | 1160 |  | 5976 | 1160 | 7136 | (20) | 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sauk Village | 21399 Torrence Avenue |  | 5405 | 877 | 676 | 6081 | 877 | 6958 | (1563) | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Schaumburg | 710 East State Parkway |  | 4086 | 689 | 177 | 4263 | 689 | 4952 | (364) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Vernon Hills | 888 Forest Edge Drive |  | 9383 | 2416 | 465 | 9848 | 2416 | 12264 | (381) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Waukegan | 3751 Sunset Avenue |  | 5030 | 1004 |  | 5030 | 1004 | 6034 | (941) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;West Chicago | 1300 Northwest Avenue |  | 2036 | 768 | 772 | 2808 | 768 | 3576 | (858) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;West Chicago | 1400 Northwest Avenue |  | 668 | 382 | 282 | 950 | 382 | 1332 | (238) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;West Chicago | 1450 Northwest Avenue |  | 768 | 450 | 272 | 1040 | 450 | 1490 | (283) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;West Chicago | 1145 & 1149 Howard |  | 842 | 369 | 392 | 1234 | 369 | 1603 | (295) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;West Chicago | 1270 Nuclear Drive |  | 892 | 216 | 315 | 1207 | 216 | 1423 | (280) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;West Chicago | 1726-1850 Blackhawk Drive |  | 6135 | 915 | 1283 | 7418 | 915 | 8333 | (1801) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;West Dundee | 901-907 Wesemann Drive |  | 12640 | 948 | 45 | 12685 | 948 | 13633 | (491) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wood Dale | 321 Forster Avenue |  | 4982 | 1226 |  | 4982 | 1226 | 6208 | (957) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Woodstock | 1005 Courtaulds Drive |  | 3796 | 496 | 183 | 3979 | 496 | 4475 | (1264) | 2012 |
| **Indiana** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Albion | 600 South 7th Street |  | 407 | 53 |  | 407 | 53 | 460 | (318) | 2006 |
| &nbsp;&nbsp;&nbsp;&nbsp;Albion | 1514 Progress Drive |  | 1443 | 126 |  | 1443 | 126 | 1569 | (562) | 2006 |
| &nbsp;&nbsp;&nbsp;&nbsp;Elkhart | 2701 Marina Drive |  | 210 | 25 | 143 | 353 | 25 | 378 | (133) | 2007 |
| &nbsp;&nbsp;&nbsp;&nbsp;Elkhart | 23590 County Road 6 |  | 3519 | 422 | 1175 | 4694 | 422 | 5116 | (1649) | 2007 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fort Wayne | 3424 Centennial Drive |  | 3076 | 112 | 3 | 3079 | 112 | 3191 | (739) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goshen | 2600 College Avenue |  | 5998 | 1442 | 1824 | 7822 | 1442 | 9264 | (2386) | 2011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Greenwood | 2441 E. Main Street |  | 12745 | 911 |  | 12745 | 911 | 13656 | (656) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Indianapolis | 7701 West New York Street |  | 3931 | 620 |  | 3931 | 620 | 4551 | (179) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Jeffersonville | 101 Jacobs Way |  | 35174 | 2891 |  | 35174 | 2891 | 38065 | (375) | 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lafayette | 1520 Kepner Drive |  | 2205 | 295 | 65 | 2270 | 295 | 2565 | (618) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lafayette | 1540-1530 Kepner Drive |  | 3405 | 410 | 372 | 3777 | 410 | 4187 | (1008) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lafayette | 1521 Kepner Drive |  | 7920 | 906 | 514 | 8434 | 906 | 9340 | (2389) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lebanon | 100 Purity Drive |  | 21160 | 1654 |  | 21160 | 1654 | 22814 | (3000) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lebanon | 800 Edwards Drive |  | 36091 | 2359 |  | 36091 | 2359 | 38450 | (3531) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lebanon | 121 N. Enterprise Boulevard |  | 50300 | 2948 |  | 50300 | 2948 | 53248 | (4466) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Marion | 2201 E. Loew Road |  | 2934 | 243 | 718 | 3652 | 243 | 3895 | (1164) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Portage | 6515 Ameriplex Drive |  | 28094 | 1626 | 425 | 28519 | 1626 | 30145 | (3331) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Portage | 725 George Nelson Drive |  | 5416 |  |  | 5416 |  | 5416 | (1474) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;South Bend | 3310 William Richardson Court |  | 4718 | 411 | 294 | 5012 | 411 | 5423 | (1434) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Yoder | 2909 Pleasant Center Road |  | 24504 | 941 | 665 | 25169 | 941 | 26110 | (2480) | 2020 |
| **Iowa** |  |  |  |  |  |  |  |  |  |  |

---

------

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | **Initial Cost to STAG Industrial, Inc.** | **Initial Cost to STAG Industrial, Inc.** | | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | | |
|<br>**State & City** |<br>**Address** |<br>**Encumbrances**<sup>(1)</sup> | **Building & Improvements**<sup>(2)</sup> | **Land**<sup>(3)</sup> |<br>**Costs Capitalized Subsequent to Acquisition and Valuation Provision** | **Building & Improvements** | **Land** | **Total** |<br>**Accumulated Depreciation**<sup>(4)</sup> |<br>**Year Acquired** |
| &nbsp;&nbsp;&nbsp;&nbsp;Ankeny | 5910 Southeast Rio Circle |  | 13709 | 846 | 105 | 13814 | 846 | 14660 | (1352) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ankeny | 6150 Southeast Rio Circle |  | 19104 | 1421 |  | 19104 | 1421 | 20525 | (618) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Council Bluffs | 1209 31st Avenue |  | 4438 | 414 |  | 4438 | 414 | 4852 | (759) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Des Moines | 3915 Delaware Avenue |  | 9342 | 1685 | 28 | 9370 | 1685 | 11055 | (363) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Des Moines | 1900 E. 17th Street |  | 4477 | 556 |  | 4477 | 556 | 5033 | (767) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Marion | 6301 North Gateway Drive |  | 2229 | 691 | 188 | 2417 | 691 | 3108 | (772) | 2013 |
| **Kansas** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Edwardsville | 9601 Woodend Road |  | 13007 | 1360 | 544 | 13551 | 1360 | 14911 | (2695) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lenexa | 9700 Lackman Road |  | 9649 | 1759 | 33 | 9682 | 1759 | 11441 | (1105) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lenexa | 14000 Marshall Drive |  | 7610 | 2368 |  | 7610 | 2368 | 9978 | (2755) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Olathe | 1202 South Lone Elm Road |  | 16272 | 1193 | 67 | 16339 | 1193 | 17532 | (1826) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Olathe | 16231 South Lone Elm Road |  | 20763 | 2431 | 4199 | 24962 | 2431 | 27393 | (6257) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wichita | 2655/2755 South Eastmoor Street |  | 1815 | 88 | 10 | 1825 | 88 | 1913 | (512) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wichita | 2652 South Eastmoor Street |  | 1839 | 107 | 183 | 2022 | 107 | 2129 | (625) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wichita | 2510 South Eastmoor Street |  | 833 | 76 | 181 | 1014 | 76 | 1090 | (428) | 2012 |
| **Kentucky** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bardstown | 300 Spencer Mattingly Lane |  | 2295 | 379 | 125 | 2420 | 379 | 2799 | (896) | 2007 |
| &nbsp;&nbsp;&nbsp;&nbsp;Danville | 1355 Lebanon Road |  | 11593 | 965 | 4325 | 15918 | 965 | 16883 | (4958) | 2011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Erlanger | 1500-1532 Interstate Drive |  | 3791 | 635 | 346 | 4137 | 635 | 4772 | (985) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Florence | 9200 Brookfield Court |  | 7914 | 863 | 88 | 8002 | 863 | 8865 | (1196) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Florence | 1100 Burlington Pike |  | 10858 | 3109 | 282 | 11140 | 3109 | 14249 | (2334) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hebron | 2151 Southpark Drive |  | 4526 | 370 | 773 | 5299 | 370 | 5669 | (1356) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Louisville | 6350 Ladd Avenue |  | 3615 | 386 | 1326 | 4941 | 386 | 5327 | (1345) | 2011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Louisville | 6400 Ladd Avenue |  | 5767 | 616 | 1745 | 7512 | 616 | 8128 | (2035) | 2011 |
| **Louisiana** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Baton Rouge | 6565 Exchequer Drive |  | 5871 | 1619 | 626 | 6497 | 1619 | 8116 | (835) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Baton Rouge | 6735 Exchequer Drive |  | 6682 | 2567 |  | 6682 | 2567 | 9249 | (987) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Baton Rouge | 12100 Little Cayman Avenue |  | 15402 | 1962 | 42 | 15444 | 1962 | 17406 | (2443) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shreveport | 7540 Bert Kouns Industrial Loop |  | 5572 | 1804 | 1276 | 6848 | 1804 | 8652 | (1457) | 2015 |
| **Maine** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Biddeford | 1 Baker's Way |  | 8164 | 1369 | 4849 | 13013 | 1369 | 14382 | (3241) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gardiner | 47 Market Street |  | 8983 | 948 | 23 | 9006 | 948 | 9954 | (2429) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lewiston | 19 Mollison Way |  | 5374 | 173 | 1064 | 6438 | 173 | 6611 | (2442) | 2007 |
| &nbsp;&nbsp;&nbsp;&nbsp;Portland | 125 Industrial Way |  | 3648 | 891 | 284 | 3932 | 891 | 4823 | (1008) | 2012 |
| **Maryland** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Elkridge | 6685 Santa Barbara Court |  | 8776 | 2982 | 38 | 8814 | 2982 | 11796 | (1095) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hagerstown | 11835 Newgate Boulevard |  | 55177 | 6036 |  | 55177 | 6036 | 61213 | (1978) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hagerstown | 11841 Newgate Boulevard |  | 55448 | 6174 | 133 | 55581 | 6174 | 61755 | (2060) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hagerstown | 105 Enterprise Lane |  | 11213 | 3472 |  | 11213 | 3472 | 14685 | (683) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hampstead | 630 Hanover Pike |  | 34933 | 780 | 2738 | 37671 | 780 | 38451 | (9145) | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hunt Valley | 11100 Gilroy Road |  | 4904 | 538 |  | 4904 | 538 | 5442 | (253) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;White Marsh | 6210 Days Cove Road |  | 6912 | 963 | 774 | 7686 | 963 | 8649 | (978) | 2018 |

---

------

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | **Initial Cost to STAG Industrial, Inc.** | **Initial Cost to STAG Industrial, Inc.** | | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | | |
|<br>**State & City** |<br>**Address** |<br>**Encumbrances**<sup>(1)</sup> | **Building & Improvements**<sup>(2)</sup> | **Land**<sup>(3)</sup> |<br>**Costs Capitalized Subsequent to Acquisition and Valuation Provision** | **Building & Improvements** | **Land** | **Total** |<br>**Accumulated Depreciation**<sup>(4)</sup> |<br>**Year Acquired** |
| **Massachusetts** | | | | | | | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Chicopee | 2189 Westover Road |  | 5614 | 504 | 3145 | 8759 | 504 | 9263 | (1651) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hudson | 4 Robert Bonazzoli Avenue |  | 12662 | 723 | 76 | 12738 | 723 | 13461 | (513) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Malden | 219 Medford Street |  | 2817 | 366 |  | 2817 | 366 | 3183 | (1124) | 2007 |
| &nbsp;&nbsp;&nbsp;&nbsp;Malden | 243 Medford Street |  | 3961 | 507 |  | 3961 | 507 | 4468 | (1580) | 2007 |
| &nbsp;&nbsp;&nbsp;&nbsp;Middleborough | 16 Leona Drive |  | 7243 | 2397 |  | 7243 | 2397 | 9640 | (1337) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Norton | 202 South Washington Street |  | 6105 | 2839 | 250 | 6355 | 2839 | 9194 | (1872) | 2011 |
| &nbsp;&nbsp;&nbsp;&nbsp;South Easton | 55 Bristol Drive |  | 5826 | 403 | 481 | 6307 | 403 | 6710 | (957) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sterling | 15 Chocksett Road |  | 10797 | 1472 |  | 10797 | 1472 | 12269 | (453) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stoughton | 100 Campanelli Parkway |  | 2613 | 2256 | 1660 | 4273 | 2256 | 6529 | (1564) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stoughton | 12 Campanelli Parkway |  | 1138 | 538 | 293 | 1431 | 538 | 1969 | (446) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Westborough | 35 Otis Street |  | 5733 | 661 | 23 | 5756 | 661 | 6417 | (1104) | 2016 |
| **Michigan** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Belleville | 8200 Haggerty Road |  | 6484 | 724 | 616 | 7100 | 724 | 7824 | (1321) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Canton | 47440 Michigan Avenue |  | 23732 | 2378 | 180 | 23912 | 2378 | 26290 | (2401) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Chesterfield | 50501 E. Russell Schmidt |  | 1099 | 207 | 12 | 1111 | 207 | 1318 | (440) | 2007 |
| &nbsp;&nbsp;&nbsp;&nbsp;Chesterfield | 50371 E. Russell Schmidt |  | 798 | 150 | 477 | 1275 | 150 | 1425 | (428) | 2007 |
| &nbsp;&nbsp;&nbsp;&nbsp;Chesterfield | 50271 E. Russell Schmidt |  | 802 | 151 | 210 | 1012 | 151 | 1163 | (458) | 2007 |
| &nbsp;&nbsp;&nbsp;&nbsp;Chesterfield | 50900 E. Russell Schmidt |  | 5006 | 942 | 2365 | 7371 | 942 | 8313 | (2931) | 2007 |
| &nbsp;&nbsp;&nbsp;&nbsp;Grand Rapids | 5445 International Parkway |  | 7082 | 1241 | 43 | 7125 | 1241 | 8366 | (548) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Grand Rapids | 5079 33rd Street |  | 4907 | 892 |  | 4907 | 892 | 5799 | (136) | 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Grand Rapids | 5333 33rd Street |  | 3460 | 1052 |  | 3460 | 1052 | 4512 | (127) | 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Grand Rapids | 5050 Kendrick Street, SE |  | 7332 | 169 | 34 | 7366 | 169 | 7535 | (1809) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Holland | 4757 128th Avenue |  | 3273 | 279 | 208 | 3481 | 279 | 3760 | (949) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Kentwood | 4660 East Paris Avenue, SE |  | 7955 | 307 | 29 | 7984 | 307 | 8291 | (1047) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Kentwood | 4647 60th Street SE |  | 16933 | 1256 | 1803 | 18736 | 1256 | 19992 | (694) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Kentwood | 4070 East Paris Avenue |  | 2436 | 407 | 120 | 2556 | 407 | 2963 | (664) | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lansing | 7009 West Mount Hope Highway |  | 7706 | 501 | 7357 | 15063 | 501 | 15564 | (3602) | 2011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lansing | 2780 Sanders Road |  | 3961 | 580 | 43 | 4004 | 580 | 4584 | (1092) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lansing | 5640 Pierson Highway |  | 7056 | 429 | 100 | 7156 | 429 | 7585 | (2084) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lansing | 2051 South Canal Road |  | 5176 | 907 |  | 5176 | 907 | 6083 | (1413) | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Livonia | 38150 Plymouth Road |  | 7032 | 1390 | 582 | 7614 | 1390 | 9004 | (1331) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Livonia | 38220 Plymouth Road |  | 8918 | 848 | 987 | 9905 | 848 | 10753 | (1229) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Marshall | 1511 George Brown Drive |  | 1042 | 199 | 130 | 1172 | 199 | 1371 | (369) | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Novi | 22925 Venture Drive |  | 3649 | 252 | 363 | 4012 | 252 | 4264 | (1090) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Novi | 25250 Regency Drive |  | 6035 | 626 | 23 | 6058 | 626 | 6684 | (1530) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Novi | 43800 Gen Mar Drive |  | 16918 | 1381 | 925 | 17843 | 1381 | 19224 | (2571) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Plymouth | 14835 Pilot Drive |  | 4620 | 365 | 250 | 4870 | 365 | 5235 | (1165) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Redford | 12100 Inkster Road |  | 6114 | 728 | 50 | 6164 | 728 | 6892 | (1615) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Romulus | 9800 Inkster Road |  | 14942 | 1254 |  | 14942 | 1254 | 16196 | (2643) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Romulus | 27651 Hildebrandt Road |  | 14949 | 1080 | 289 | 15238 | 1080 | 16318 | (2948) | 2017 |

---

------

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | **Initial Cost to STAG Industrial, Inc.** | **Initial Cost to STAG Industrial, Inc.** | | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | | |
|<br>**State & City** |<br>**Address** |<br>**Encumbrances**<sup>(1)</sup> | **Building & Improvements**<sup>(2)</sup> | **Land**<sup>(3)</sup> |<br>**Costs Capitalized Subsequent to Acquisition and Valuation Provision** | **Building & Improvements** | **Land** | **Total** |<br>**Accumulated Depreciation**<sup>(4)</sup> |<br>**Year Acquired** |
| &nbsp;&nbsp;&nbsp;&nbsp;Sterling Heights | 42600 Merrill Street |  | 4191 | 1133 | 1385 | 5576 | 1133 | 6709 | (1454) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Walker | 2640 Northridge Drive |  | 4593 | 855 | 342 | 4935 | 855 | 5790 | (1444) | 2011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Warren | 13301 Stephens Road |  | 5820 | 502 | 116 | 5936 | 502 | 6438 | (1136) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Warren | 27027 Mound Road |  | 17584 | 1984 |  | 17584 | 1984 | 19568 | (1684) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Warren | 25295 Guenther Road |  | 19273 | 531 |  | 19273 | 531 | 19804 | (986) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Warren | 7500 Tank Avenue |  | 16035 | 1290 |  | 16035 | 1290 | 17325 | (3658) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wixom | 48238 Frank Street |  | 14433 | 293 |  | 14433 | 293 | 14726 | (509) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Zeeland | 750 E. Riley Avenue |  | 12100 | 487 |  | 12100 | 487 | 12587 | (1745) | 2019 |
| **Minnesota** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Blaine | 3705 95th Avenue NE |  | 16873 | 2258 |  | 16873 | 2258 | 19131 | (2160) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Bloomington | 11300 Hampshire Avenue South |  | 8582 | 1702 | 23 | 8605 | 1702 | 10307 | (1502) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Brooklyn Park | 6688 93rd Avenue North |  | 11988 | 1926 |  | 11988 | 1926 | 13914 | (2396) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Carlos | 4750 County Road 13 NE |  | 5855 | 960 | 151 | 6006 | 960 | 6966 | (1962) | 2011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Eagan | 3355 Discovery Road |  | 15290 | 2526 |  | 15290 | 2526 | 17816 | (2070) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inver Grove Height | 8450 Courthouse Boulevard |  | 6964 | 2595 |  | 6964 | 2595 | 9559 | (416) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Maple Grove | 6250 Sycamore Lane North |  | 6634 | 969 | 473 | 7107 | 969 | 8076 | (1450) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Maple Grove | 8175 Jefferson Highway |  | 10397 | 2327 | 143 | 10540 | 2327 | 12867 | (918) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mendota Heights | 2250 Pilot Knob Road |  | 3492 | 1494 | 1062 | 4554 | 1494 | 6048 | (1037) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;New Hope | 5520 North Highway 169 |  | 1902 | 1919 | 449 | 2351 | 1919 | 4270 | (675) | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Newport | 710 Hastings Avenue |  | 8367 | 1765 |  | 8367 | 1765 | 10132 | (284) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Oakdale | 550 Hale Avenue |  | 6556 | 647 | 202 | 6758 | 647 | 7405 | (1039) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Oakdale | 585-595 Hale Avenue |  | 5022 | 1396 | 298 | 5320 | 1396 | 6716 | (897) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Plymouth | 9800 13th Avenue North |  | 4978 | 1599 |  | 4978 | 1599 | 6577 | (1013) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Plymouth | 6050 Nathan Lane |  | 5855 | 1109 | 24 | 5879 | 1109 | 6988 | (723) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Plymouth | 6075 Trenton Lane North |  | 6919 | 1569 |  | 6919 | 1569 | 8488 | (824) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Savage | 14399 Huntington Avenue |  | 3836 | 3194 | 1253 | 5089 | 3194 | 8283 | (1614) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shakopee | 5101/4901 Valley Industrial Boulevard |  | 11596 | 584 |  | 11596 | 584 | 12180 | (314) | 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Shakopee | 1451 Dean Lakes Trail |  | 12496 | 927 | 61 | 12557 | 927 | 13484 | (1223) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Saint Paul | 1700 Wynne Avenue |  | 23675 | 2258 |  | 23675 | 2258 | 25933 | (905) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;South Saint Paul | 411 Farwell Avenue |  | 14975 | 2378 | 498 | 15473 | 2378 | 17851 | (2626) | 2018 |
| **Mississippi** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Southaven | 228 Access Drive |  | 28566 | 1000 | 26 | 28592 | 1000 | 29592 | (1985) | 2020 |
| **Missouri** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Berkeley | 8901 Springdale Avenue |  | 9859 | 1423 |  | 9859 | 1423 | 11282 | (410) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Earth City | 1 American Eagle Plaza |  | 2751 | 1123 | 60 | 2811 | 1123 | 3934 | (674) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fenton | 2501 & 2509 Cassens Drive |  | 9358 | 791 |  | 9358 | 791 | 10149 | (1044) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hazelwood | 7275 Hazelwood Avenue |  | 5030 | 1382 | 1599 | 6629 | 1382 | 8011 | (1959) | 2011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Kansas City | 4001 North Norfleet Road |  | 48342 | 4239 |  | 48342 | 4239 | 52581 | (1579) | 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;O'Fallon | 6705 Keaton Corporate Parkway |  | 3606 | 1233 | 401 | 4007 | 1233 | 5240 | (949) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;O'Fallon | 3801 Lloyd King Drive |  | 2579 | 1242 | 829 | 3408 | 1242 | 4650 | (1053) | 2011 |
| **Nebraska** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bellevue | 10601 S 15th Street |  | 20384 | 1691 |  | 20384 | 1691 | 22075 | (1385) | 2021 |

---

------

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | **Initial Cost to STAG Industrial, Inc.** | **Initial Cost to STAG Industrial, Inc.** | | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | | |
|<br>**State & City** |<br>**Address** |<br>**Encumbrances**<sup>(1)</sup> | **Building & Improvements**<sup>(2)</sup> | **Land**<sup>(3)</sup> |<br>**Costs Capitalized Subsequent to Acquisition and Valuation Provision** | **Building & Improvements** | **Land** | **Total** |<br>**Accumulated Depreciation**<sup>(4)</sup> |<br>**Year Acquired** |
| &nbsp;&nbsp;&nbsp;&nbsp;La Vista | 11720 Peel Circle |  | 14679 | 1232 |  | 14679 | 1232 | 15911 | (512) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Omaha | 10488 S. 136th Street |  | 13736 | 1602 | 52 | 13788 | 1602 | 15390 | (1588) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Omaha | 9995 I Street |  | 3202 | 572 | 164 | 3366 | 572 | 3938 | (363) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Omaha | 10025 I Street |  | 2449 | 579 | 133 | 2582 | 579 | 3161 | (351) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Omaha | 9931 South 136th Street |  | 2636 | 828 | 221 | 2857 | 828 | 3685 | (127) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Omaha | 9950 South 134th Street |  | 3398 | 868 |  | 3398 | 868 | 4266 | (135) | 2021 |
| **Nevada** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fernley | 190 Resource Drive |  | 11401 | 1034 |  | 11401 | 1034 | 12435 | (612) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Las Vegas | 730 Pilot Road |  | 12390 | 2615 | 236 | 12626 | 2615 | 15241 | (2079) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Las Vegas | 3450 West Teco Avenue |  | 3259 | 770 | 117 | 3376 | 770 | 4146 | (566) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Paradise | 4565 Wynn Road |  | 4514 | 949 |  | 4514 | 949 | 5463 | (516) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Paradise | 6460 Arville Street |  | 3415 | 1465 | 251 | 3666 | 1465 | 5131 | (538) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reno | 9025 Moya Boulevard |  | 3356 | 1372 | 107 | 3463 | 1372 | 4835 | (960) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sparks | 325 E. Nugget Avenue |  | 6328 | 938 | 977 | 7305 | 938 | 8243 | (1789) | 2017 |
| **New Hampshire** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Londonderry | 29 Jack's Bridge Road/Clark Road |  | 6683 | 730 |  | 6683 | 730 | 7413 | (1949) | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nashua | 80 Northwest Boulevard |  | 8470 | 1431 | 487 | 8957 | 1431 | 10388 | (2380) | 2014 |
| **New Jersey** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Branchburg | 291 Evans Way |  | 10852 | 2367 | 149 | 11001 | 2367 | 13368 | (1093) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Burlington | 8 Campus Drive |  | 15797 | 3267 | 266 | 16063 | 3267 | 19330 | (964) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Burlington | 6 Campus Drive |  | 19577 | 4030 | 1356 | 20933 | 4030 | 24963 | (5011) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Franklin Township | 17 & 20 Veronica Avenue |  | 8264 | 2272 | 1555 | 9819 | 2272 | 12091 | (2157) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lumberton | 101 Mount Holly Bypass |  | 6372 | 1121 |  | 6372 | 1121 | 7493 | (1036) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Moorestown | 550 Glen Avenue |  | 5678 | 466 | 80 | 5758 | 466 | 6224 | (793) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Moorestown | 600 Glen Court |  | 4749 | 510 | 40 | 4789 | 510 | 5299 | (750) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mt. Laurel | 103 Central Avenue |  | 6695 | 616 | 942 | 7637 | 616 | 8253 | (538) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pedricktown | One Gateway Boulevard |  | 10250 | 2414 | 4544 | 14794 | 2414 | 17208 | (2172) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Swedesboro | 2165 Center Square Road |  | 5129 | 1212 | 818 | 5947 | 1212 | 7159 | (1046) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Westampton | 800 Highland Drive |  | 27336 | 3647 |  | 27336 | 3647 | 30983 | (676) | 2021 |
| **New Mexico** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Santa Teresa | 150 Earhardt Drive |  | 8906 | 723 |  | 8906 | 723 | 9629 | (131) | 2022 |
| **New York** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Buffalo | 1236-50 William Street |  | 2924 | 146 |  | 2924 | 146 | 3070 | (862) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cheektowaga | 40-60 Industrial Parkway |  | 2699 | 216 | 1032 | 3731 | 216 | 3947 | (1280) | 2011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Farmington | 5786 Collett Road |  | 5282 | 410 | 896 | 6178 | 410 | 6588 | (2200) | 2007 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gloversville | 125 Belzano Drive |  | 1299 | 117 | 7 | 1306 | 117 | 1423 | (404) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gloversville | 122 Belzano Drive |  | 2559 | 151 | 73 | 2632 | 151 | 2783 | (751) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gloversville | 109 Belzano Drive |  | 1486 | 154 | 164 | 1650 | 154 | 1804 | (480) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Johnstown | 123 Union Avenue |  | 1592 | 216 | 33 | 1625 | 216 | 1841 | (445) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Johnstown | 231 Enterprise Drive |  | 955 | 151 | 96 | 1051 | 151 | 1202 | (369) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Johnstown | 150 Enterprise Avenue |  | 1440 | 140 |  | 1440 | 140 | 1580 | (470) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Rochester | 2883 Brighton Henrietta Townline Road |  | 6979 | 619 | 601 | 7580 | 619 | 8199 | (543) | 2020 |

---

------

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | **Initial Cost to STAG Industrial, Inc.** | **Initial Cost to STAG Industrial, Inc.** | | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | | |
|<br>**State & City** |<br>**Address** |<br>**Encumbrances**<sup>(1)</sup> | **Building & Improvements**<sup>(2)</sup> | **Land**<sup>(3)</sup> |<br>**Costs Capitalized Subsequent to Acquisition and Valuation Provision** | **Building & Improvements** | **Land** | **Total** |<br>**Accumulated Depreciation**<sup>(4)</sup> |<br>**Year Acquired** |
| &nbsp;&nbsp;&nbsp;&nbsp;Rochester | 1350 Scottsville Road |  | 6746 | 208 |  | 6746 | 208 | 6954 | (638) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Ronkonkoma | 845 South 1st Street | (4744) | 6091 | 1213 | 40 | 6131 | 1213 | 7344 | (381) | 2021 |
| **North Carolina** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Catawba | 3389 Catawba Industrial Place |  | 8166 | 1692 |  | 8166 | 1692 | 9858 | (593) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Charlotte | 1401 Tar Heel Road |  | 3842 | 515 | 63 | 3905 | 515 | 4420 | (759) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Charlotte | 2027 Gateway Boulevard |  | 3654 | 913 | 30 | 3684 | 913 | 4597 | (555) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Charlotte | 3115 Beam Road |  | 4839 | 369 | 179 | 5018 | 369 | 5387 | (392) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Durham | 2702 Weck Drive |  | 2589 | 753 | 138 | 2727 | 753 | 3480 | (632) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Garner | 2337 US Highway 70E |  | 11790 | 3420 |  | 11790 | 3420 | 15210 | (832) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Greensboro | 415 Westcliff Road |  | 6383 | 691 | 208 | 6591 | 691 | 7282 | (957) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Huntersville | 13201 Reese Boulevard Unit 100 |  | 3123 | 1061 | 980 | 4103 | 1061 | 5164 | (1077) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lexington | 200 Woodside Drive |  | 3863 | 232 | 1345 | 5208 | 232 | 5440 | (1601) | 2011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mebane | 7412 Oakwood Street |  | 4570 | 481 | 552 | 5122 | 481 | 5603 | (1548) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mebane | 7600 Oakwood Street |  | 4148 | 443 |  | 4148 | 443 | 4591 | (1302) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mebane | 7110 E. Washington Street |  | 4981 | 358 | 1338 | 6319 | 358 | 6677 | (1514) | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mocksville | 171 Enterprise Way |  | 5582 | 1091 | 459 | 6041 | 1091 | 7132 | (771) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mooresville | 119 Super Sport Drive |  | 17889 | 4195 | 334 | 18223 | 4195 | 22418 | (3038) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mooresville | 313 Mooresville Boulevard |  | 6968 | 701 | 466 | 7434 | 701 | 8135 | (2269) | 2011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mountain Home | 199 N. Egerton Road |  | 2359 | 523 |  | 2359 | 523 | 2882 | (571) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Newton | 1500 Prodelin Drive |  | 7338 | 732 | 1283 | 8621 | 732 | 9353 | (2069) | 2011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pineville | 10519 Industrial Drive |  | 1179 | 392 |  | 1179 | 392 | 1571 | (312) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Rural Hall | 300 Forum Parkway |  | 5375 | 439 | 1007 | 6382 | 439 | 6821 | (2035) | 2011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Salisbury | 990 Cedar Springs Road |  | 5009 | 1535 | 2625 | 7634 | 1535 | 9169 | (1659) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Smithfield | 3250 Highway 70 Business West |  | 10397 | 613 | 72 | 10469 | 613 | 11082 | (2023) | 2011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Troutman | 279 & 281 Old Murdock Road |  | 13392 | 802 | 297 | 13689 | 802 | 14491 | (2243) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Winston-Salem | 2655 Annapolis Drive |  | 10716 | 610 | 16 | 10732 | 610 | 11342 | (2863) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Youngsville | 200 K-Flex Way |  | 16150 | 1836 |  | 16150 | 1836 | 17986 | (2296) | 2018 |
| **Ohio** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bedford Heights | 26801 Fargo Avenue |  | 5267 | 837 | 955 | 6222 | 837 | 7059 | (1514) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Boardman | 365 McClurg Road |  | 3473 | 282 | 872 | 4345 | 282 | 4627 | (1785) | 2007 |
| &nbsp;&nbsp;&nbsp;&nbsp;Canal Winchester | 6200-6250 Winchester Boulevard |  | 37431 | 6403 |  | 37431 | 6403 | 43834 | (1649) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Canal Winchester | 6260-6300 Winchester Boulevard |  | 19432 | 3708 | 359 | 19791 | 3708 | 23499 | (970) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Columbus | 1605 Westbelt Drive |  | 5222 | 337 | 125 | 5347 | 337 | 5684 | (1054) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Columbus | 5330 Crosswinds Drive |  | 45112 | 3410 | (269) | 44843 | 3410 | 48253 | (3038) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Columbus | 200 McCormick Boulevard |  | 8960 | 988 |  | 8960 | 988 | 9948 | (282) | 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Columbus | 3900-3990 Business Park Drive |  | 2976 | 489 | 657 | 3633 | 489 | 4122 | (1028) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dayton | 2815 South Gettysburg Avenue |  | 5896 | 331 | 529 | 6425 | 331 | 6756 | (1681) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Etna | 8591 Mink Street SW |  | 73402 | 2939 | 107 | 73509 | 2939 | 76448 | (5287) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fairborn | 1340 E Dayton Yellow Springs Road |  | 5569 | 867 | 272 | 5841 | 867 | 6708 | (1749) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fairfield | 4275 Thunderbird Lane |  | 2788 | 948 | 822 | 3610 | 948 | 4558 | (904) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fairfield | 3840 Port Union Road |  | 5337 | 1086 | 252 | 5589 | 1086 | 6675 | (1054) | 2018 |

---

------

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | **Initial Cost to STAG Industrial, Inc.** | **Initial Cost to STAG Industrial, Inc.** | | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | | |
|<br>**State & City** |<br>**Address** |<br>**Encumbrances**<sup>(1)</sup> | **Building & Improvements**<sup>(2)</sup> | **Land**<sup>(3)</sup> |<br>**Costs Capitalized Subsequent to Acquisition and Valuation Provision** | **Building & Improvements** | **Land** | **Total** |<br>**Accumulated Depreciation**<sup>(4)</sup> |<br>**Year Acquired** |
| &nbsp;&nbsp;&nbsp;&nbsp;Gahanna | 1120 Morrison Road |  | 3806 | 1265 | 2244 | 6050 | 1265 | 7315 | (1810) | 2011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Groveport | 5830 Green Pointe Drive South |  | 10828 | 642 | 236 | 11064 | 642 | 11706 | (1968) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hilliard | 4251 Leap Road |  | 7412 | 550 | 896 | 8308 | 550 | 8858 | (1574) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Macedonia | 8295 Bavaria Drive |  | 10219 | 1001 |  | 10219 | 1001 | 11220 | (297) | 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Macedonia | 1261 Highland Road |  | 8063 | 1690 | 292 | 8355 | 1690 | 10045 | (2025) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Maple Heights | 16645 Granite Road |  | 4357 | 922 |  | 4357 | 922 | 5279 | (268) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mason | 7258 Innovation Way |  | 4582 | 673 |  | 4582 | 673 | 5255 | (1172) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;North Jackson | 500 South Bailey Road |  | 4356 | 1528 | 511 | 4867 | 1528 | 6395 | (1300) | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;North Jackson | 382 Rosemont Road |  | 7681 | 486 | 1269 | 8950 | 486 | 9436 | (2011) | 2011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Oakwood Village | 26350 Broadway |  | 3041 | 343 | 178 | 3219 | 343 | 3562 | (828) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Salem | 800 Pennsylvania Avenue |  | 7674 | 858 | 1112 | 8786 | 858 | 9644 | (3281) | 2006 |
| &nbsp;&nbsp;&nbsp;&nbsp;Seville | 276 West Greenwich Road |  | 1591 | 273 | 103 | 1694 | 273 | 1967 | (582) | 2011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Streetsboro | 9777 Mopar Drive |  | 4909 | 2161 | 1157 | 6066 | 2161 | 8227 | (1671) | 2011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Strongsville | 14450 Foltz Industrial Parkway |  | 16487 | 1315 |  | 16487 | 1315 | 17802 | (791) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Strongsville | 12930 Darice Parkway |  | 5750 | 491 | 963 | 6713 | 491 | 7204 | (1635) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Toledo | 1800 Jason Street |  | 6487 | 213 | 250 | 6737 | 213 | 6950 | (1894) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Twinsburg | 8601 Independence Parkway |  | 19772 | 3855 |  | 19772 | 3855 | 23627 | (1426) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Twinsburg | 7990 Bavaria Road |  | 8027 | 590 | 87 | 8114 | 590 | 8704 | (2829) | 2007 |
| &nbsp;&nbsp;&nbsp;&nbsp;West Chester | 9696 International Boulevard |  | 8868 | 936 |  | 8868 | 936 | 9804 | (1890) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;West Jefferson | 1550 West Main Street |  | 70213 | 2015 | 31 | 70244 | 2015 | 72259 | (8480) | 2019 |
| **Oklahoma** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Oklahoma City | 4949 Southwest 20th Street |  | 2211 | 746 | 124 | 2335 | 746 | 3081 | (764) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Oklahoma City | 5101 South Council Road |  | 9199 | 1614 | 1466 | 10665 | 1614 | 12279 | (2526) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tulsa | 11607 E. 43rd Street North |  | 8242 | 966 |  | 8242 | 966 | 9208 | (2119) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tulsa | 10757 East Ute Street |  | 7167 | 644 | 125 | 7292 | 644 | 7936 | (694) | 2020 |
| **Oregon** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Salem | 4060 Fairview Industrial Drive |  | 3039 | 599 | 780 | 3819 | 599 | 4418 | (1154) | 2011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Salem | 4050 Fairview Industrial Drive |  | 1372 | 266 | 529 | 1901 | 266 | 2167 | (588) | 2011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Wilsonville | 9400 SW Barber Street |  | 10142 | 696 | 18 | 10160 | 696 | 10856 | (100) | 2022 |
| **Pennsylvania** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Allentown | 7132 Daniels Drive |  | 7199 | 1962 | 2130 | 9329 | 1962 | 11291 | (2433) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Burgettstown | 157 Starpointe Boulevard |  | 23416 | 1248 | 178 | 23594 | 1248 | 24842 | (3065) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Charleroi | 200 Simko Boulevard |  | 10539 | 935 | 47 | 10586 | 935 | 11521 | (1598) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Clinton | 2300 Sweeney Drive |  | 19339 |  | 25 | 19364 |  | 19364 | (3654) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Clinton | 2251 Sweeney Drive |  | 12390 |  |  | 12390 |  | 12390 | (1830) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Clinton | 2300 Sweeney Drive Extension |  | 16840 |  | 931 | 17771 |  | 17771 | (2249) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Clinton | 1200 Clifford Ball Drive |  | 10524 |  |  | 10524 |  | 10524 | (795) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Clinton | 1111 Clifford Ball Drive |  | 5668 |  |  | 5668 |  | 5668 | (436) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Clinton | 1300 Clifford Ball Drive |  | 18152 |  |  | 18152 |  | 18152 | (1308) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Clinton | 1100 Clifford Ball Drive |  | 40282 |  |  | 40282 |  | 40282 | (1097) | 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Croydon | 3001 State Road |  | 4655 | 829 |  | 4655 | 829 | 5484 | (726) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Elizabethtown | 11 and 33 Industrial Road |  | 5315 | 1000 | 732 | 6047 | 1000 | 7047 | (1495) | 2014 |

---

------

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | **Initial Cost to STAG Industrial, Inc.** | **Initial Cost to STAG Industrial, Inc.** | | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | | |
|<br>**State & City** |<br>**Address** |<br>**Encumbrances**<sup>(1)</sup> | **Building & Improvements**<sup>(2)</sup> | **Land**<sup>(3)</sup> |<br>**Costs Capitalized Subsequent to Acquisition and Valuation Provision** | **Building & Improvements** | **Land** | **Total** |<br>**Accumulated Depreciation**<sup>(4)</sup> |<br>**Year Acquired** |
| &nbsp;&nbsp;&nbsp;&nbsp;Export | 1003 Corporate Lane |  | 5604 | 667 |  | 5604 | 667 | 6271 | (724) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hazleton | 69 Green Mountain Road |  | 43685 | 4995 | 154 | 43839 | 4995 | 48834 | (1773) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Imperial | 200 Solar Drive |  | 22135 | 1762 |  | 22135 | 1762 | 23897 | (2281) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lancaster | 2919 Old Tree Drive |  | 5134 | 1520 | 1280 | 6414 | 1520 | 7934 | (1996) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Langhorne | 2151 Cabot Boulevard West |  | 3771 | 1370 | 103 | 3874 | 1370 | 5244 | (816) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Langhorne | 2201 Cabot Boulevard West |  | 3018 | 1308 | 528 | 3546 | 1308 | 4854 | (952) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Langhorne | 121 Wheeler Court |  | 6327 | 1884 | 1083 | 7410 | 1884 | 9294 | (1508) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Langhorne | 1 Cabot Boulevard East |  | 4203 | 1155 | 83 | 4286 | 1155 | 5441 | (561) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lebanon | 1 Keystone Drive |  | 5083 | 1380 | 163 | 5246 | 1380 | 6626 | (1858) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mechanicsburg | 6350 Brackbill Boulevard |  | 5079 | 1482 | 1813 | 6892 | 1482 | 8374 | (1587) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mechanicsburg | 6360 Brackbill Boulevard |  | 7042 | 1800 | 989 | 8031 | 1800 | 9831 | (1911) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mechanicsburg | 245 Salem Church Road |  | 7977 | 1452 | 726 | 8703 | 1452 | 10155 | (2155) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Muhlenberg Township | 171-173 Tuckerton Road |  | 13784 | 843 | 2498 | 16282 | 843 | 17125 | (4294) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;New Galilee | 1750 Shenango Road |  | 25636 | 1127 | 274 | 25910 | 1127 | 27037 | (2805) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;New Kensington | 115 Hunt Valley Road |  | 9145 | 177 |  | 9145 | 177 | 9322 | (1258) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;New Kingstown | 6 Doughten Road |  | 8625 | 2041 | 619 | 9244 | 2041 | 11285 | (2383) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;O'Hara Township | 100 Papercraft Park |  | 18612 | 1435 | 8179 | 26791 | 1435 | 28226 | (8204) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pittston | One Commerce Road |  | 19603 | 677 | 97 | 19700 | 677 | 20377 | (3327) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reading | 2001 Centre Avenue |  | 5294 | 1708 | 1276 | 6570 | 1708 | 8278 | (1190) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Warrendale | 410-426 Keystone Drive |  | 12089 | 1853 | 786 | 12875 | 1853 | 14728 | (1694) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;York | 2925 East Market Street |  | 14209 | 2152 | 381 | 14590 | 2152 | 16742 | (2306) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;York | 57 Grumbacher Road |  | 14832 | 966 | 28 | 14860 | 966 | 15826 | (2085) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;York | 420 Emig Road |  | 7886 | 869 |  | 7886 | 869 | 8755 | (1237) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;York | 915 Woodland View Drive |  | 5788 | 1139 | 138 | 5926 | 1139 | 7065 | (292) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;York | 2800 Concord Road |  | 21154 | 1478 | 599 | 21753 | 1478 | 23231 | (826) | 2021 |
| **South Carolina** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Columbia | 128 Crews Drive |  | 5171 | 783 | 162 | 5333 | 783 | 6116 | (1283) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Duncan | 110 Hidden Lakes Circle |  | 10981 | 1002 | 1267 | 12248 | 1002 | 13250 | (3865) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Duncan | 112 Hidden Lakes Circle |  | 6739 | 709 | 1586 | 8325 | 709 | 9034 | (2408) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Duncan | 175 Spartangreen Boulevard |  | 12390 | 936 | 52 | 12442 | 936 | 13378 | (546) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Edgefield | One Tranter Drive |  | 938 | 220 | 887 | 1825 | 220 | 2045 | (693) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fountain Inn | 107 Southchase Boulevard |  | 8308 | 766 | 412 | 8720 | 766 | 9486 | (1482) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fountain Inn | 141 Southchase Boulevard |  | 14984 | 1878 | 81 | 15065 | 1878 | 16943 | (2911) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fountain Inn | 111 Southchase Boulevard |  | 4260 | 719 | 95 | 4355 | 719 | 5074 | (1125) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gaffney | 50 Peachview Boulevard |  | 4383 | 1233 | 2058 | 6441 | 1233 | 7674 | (1167) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goose Creek | 6 Corporate Parkway |  | 29360 | 4459 |  | 29360 | 4459 | 33819 | (3413) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Greenwood | 215 Mill Avenue |  | 1824 | 166 | 641 | 2465 | 166 | 2631 | (587) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Greenwood | 308-310 Maxwell Avenue |  | 1168 | 169 | 673 | 1841 | 169 | 2010 | (470) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Greer | 2501 Highway 101 |  | 10841 | 1126 | 658 | 11499 | 1126 | 12625 | (1811) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Greer | 8 Shelter Drive |  | 4939 | 681 | 3478 | 8417 | 681 | 9098 | (1522) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Greer | 1000 Robinson Road |  | 25631 | 849 |  | 25631 | 849 | 26480 | (760) | 2021 |

---

------

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | **Initial Cost to STAG Industrial, Inc.** | **Initial Cost to STAG Industrial, Inc.** | | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | | |
|<br>**State & City** |<br>**Address** |<br>**Encumbrances**<sup>(1)</sup> | **Building & Improvements**<sup>(2)</sup> | **Land**<sup>(3)</sup> |<br>**Costs Capitalized Subsequent to Acquisition and Valuation Provision** | **Building & Improvements** | **Land** | **Total** |<br>**Accumulated Depreciation**<sup>(4)</sup> |<br>**Year Acquired** |
| &nbsp;&nbsp;&nbsp;&nbsp;Greer | 1817 East Poinsett Street |  | 37469 | 3674 | 72 | 37541 | 3674 | 41215 |  | 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Greer | 1809 East Poinsett Street |  | 41 | 1885 |  | 41 | 1885 | 1926 |  | 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Greer | 129 Metro Court |  | 1434 | 129 | 392 | 1826 | 129 | 1955 | (455) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Greer | 149 Metro Court |  | 1731 | 128 | 558 | 2289 | 128 | 2417 | (482) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Greer | 153 Metro Court |  | 460 | 153 | 155 | 615 | 153 | 768 | (185) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Greer | 154 Metro Court |  | 2963 | 306 | 959 | 3922 | 306 | 4228 | (911) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Laurens | 103 Cherry Blossom Drive |  | 4033 | 151 | 52 | 4085 | 151 | 4236 | (853) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Piedmont | 1100 Piedmont Highway |  | 4093 | 231 | 450 | 4543 | 231 | 4774 | (999) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Piedmont | 1102 Piedmont Highway |  | 2092 | 158 | 45 | 2137 | 158 | 2295 | (482) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Piedmont | 1104 Piedmont Highway |  | 2166 | 204 |  | 2166 | 204 | 2370 | (623) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Piedmont | 513 Old Griffin Road |  | 9260 | 797 | 2022 | 11282 | 797 | 12079 | (1485) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Piedmont | 1610 Old Grove Road |  | 18893 | 1971 |  | 18893 | 1971 | 20864 | (3481) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Piedmont | 100 Exchange Logistics Park Drive |  | 25151 | 569 | 1001 | 26152 | 569 | 26721 | (624) | 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Piedmont | 119 Matrix Parkway |  | 13912 | 331 |  | 13912 | 331 | 14243 | (363) | 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Rock Hill | 2751 Commerce Drive, Unit C | (3296) | 6146 | 1411 | 767 | 6913 | 1411 | 8324 | (1572) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Rock Hill | 1953 Langston Street |  | 4333 | 1095 | 897 | 5230 | 1095 | 6325 | (1075) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Rock Hill | 2225 Williams Industrial Boulevard |  | 10903 | 1118 |  | 10903 | 1118 | 12021 | (839) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Simpsonville | 101 Harrison Bridge Road |  | 2960 | 957 | 3659 | 6619 | 957 | 7576 | (1635) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Simpsonville | 103 Harrison Bridge Road |  | 3364 | 470 | 1053 | 4417 | 470 | 4887 | (1212) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Simpsonville | 1312 Old Stage Road |  | 24200 | 1454 | 3426 | 27626 | 1454 | 29080 | (3700) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Spartanburg | 5675 North Blackstock Road |  | 15100 | 1867 | 271 | 15371 | 1867 | 17238 | (3932) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Spartanburg | 950 Brisack Road |  | 3564 | 342 | 1026 | 4590 | 342 | 4932 | (1234) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Spartanburg | 2071 Fryml Drive |  | 7624 | 663 |  | 7624 | 663 | 8287 | (1019) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Spartanburg | 2171 Fryml Drive |  | 4480 | 530 | 86 | 4566 | 530 | 5096 | (671) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Spartanburg | 2010 Nazareth Church Road |  | 16535 | 895 | 745 | 17280 | 895 | 18175 | (1995) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Spartanburg | 150-160 National Avenue |  | 5797 | 493 | 944 | 6741 | 493 | 7234 | (1914) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Summerville | 105 Eastport Lane |  | 4710 | 1157 | 534 | 5244 | 1157 | 6401 | (567) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;West Columbia | 185 McQueen Street |  | 6946 | 715 | 2355 | 9301 | 715 | 10016 | (2386) | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;West Columbia | 610 Kelsey Court |  | 9488 | 488 |  | 9488 | 488 | 9976 | (1728) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;West Columbia | 825 Bistline Drive |  | 9151 | 240 | 1008 | 10159 | 240 | 10399 | (1669) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;West Columbia | 810 Bistline Drive |  | 10881 | 564 |  | 10881 | 564 | 11445 | (1245) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;West Columbia | 1000 Technology Drive |  | 26023 | 1422 |  | 26023 | 1422 | 27445 | (3436) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;West Columbia | 842 Bistline Drive |  | 12723 | 1217 | 1749 | 14472 | 1217 | 15689 | (725) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;West Columbia | 222 Old Wire Road |  | 4646 | 551 | 2301 | 6947 | 551 | 7498 | (2064) | 2016 |
| **Tennessee** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Chattanooga | 1800 Crutchfield Street Building A |  | 2181 | 187 | 14 | 2195 | 187 | 2382 | (486) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Chattanooga | 1800 Crutchfield Street Building B |  | 4448 | 380 | 84 | 4532 | 380 | 4912 | (1009) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Chattanooga | 1100 Wisdom Street & 1295 Stuart Street |  | 7959 | 424 | 397 | 8356 | 424 | 8780 | (2312) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cleveland | 4405 Michigan Avenue Road NE |  | 3161 | 554 | 84 | 3245 | 554 | 3799 | (1110) | 2011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Clinton | 1330 Carden Farm Drive |  | 3101 | 403 | 241 | 3342 | 403 | 3745 | (827) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Jackson | 1094 Flex Drive |  | 2374 | 230 | 628 | 3002 | 230 | 3232 | (952) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Knoxville | 2525 Quality Drive |  | 3104 | 447 | 46 | 3150 | 447 | 3597 | (820) | 2015 |

---

------

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | **Initial Cost to STAG Industrial, Inc.** | **Initial Cost to STAG Industrial, Inc.** | | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | | |
|<br>**State & City** |<br>**Address** |<br>**Encumbrances**<sup>(1)</sup> | **Building & Improvements**<sup>(2)</sup> | **Land**<sup>(3)</sup> |<br>**Costs Capitalized Subsequent to Acquisition and Valuation Provision** | **Building & Improvements** | **Land** | **Total** |<br>**Accumulated Depreciation**<sup>(4)</sup> |<br>**Year Acquired** |
| &nbsp;&nbsp;&nbsp;&nbsp;Knoxville | 2522 and 2526 Westcott Boulevard |  | 4919 | 472 |  | 4919 | 472 | 5391 | (757) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Knoxville | 5700 Casey Drive |  | 7812 | 1117 | 735 | 8547 | 1117 | 9664 | (1203) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lebanon | 535 Maddox-Simpson Parkway |  | 16067 | 1016 | 50 | 16117 | 1016 | 17133 | (2648) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lebanon | 675 Maddox-Simpson Parkway |  | 5891 | 519 |  | 5891 | 519 | 6410 | (202) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loudon | 1700 Elizabeth Lee Parkway |  | 3686 | 170 | 1572 | 5258 | 170 | 5428 | (993) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Madison | 538 Myatt Drive |  | 5758 | 1655 | 1891 | 7649 | 1655 | 9304 | (2511) | 2011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mascot | 9575 Commission Drive |  | 3179 | 284 | 75 | 3254 | 284 | 3538 | (846) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mascot | 2122 Holston Bend Drive |  | 4323 | 385 | 611 | 4934 | 385 | 5319 | (1117) | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Memphis | 7625 Appling Center Drive |  | 13463 | 539 |  | 13463 | 539 | 14002 | (377) | 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Memphis | 4880 East Tuggle Road |  | 41078 | 2501 | 1000 | 42078 | 2501 | 44579 | (4863) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Murfreesboro | 1975 Joe B. Jackson Parkway |  | 9617 | 2206 | 6 | 9623 | 2206 | 11829 | (258) | 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Murfreesboro | 540 New Salem Road |  | 2799 | 722 | 151 | 2950 | 722 | 3672 | (942) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Nashville | 3258 Ezell Pike |  | 3455 | 547 | 174 | 3629 | 547 | 4176 | (873) | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Vonore | 90 Deer Crossing Road |  | 7821 | 2355 | 85 | 7906 | 2355 | 10261 | (2347) | 2011 |
| **Texas** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Arlington | 3311 Pinewood Drive |  | 2374 | 413 | 385 | 2759 | 413 | 3172 | (1039) | 2007 |
| &nbsp;&nbsp;&nbsp;&nbsp;Arlington | 401 N. Great Southwest Parkway |  | 5767 | 1246 | 1165 | 6932 | 1246 | 8178 | (1816) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cedar Hill | 1650 U.S. Highway 67 |  | 11870 | 4066 | 1774 | 13644 | 4066 | 17710 | (3813) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Conroe | 16548 Donwick Drive |  | 20995 | 1853 | 1018 | 22013 | 1853 | 23866 | (2930) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;El Paso | 32 Celerity Wagon |  | 3532 |  | 196 | 3728 |  | 3728 | (714) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;El Paso | 48 Walter Jones Boulevard |  | 10250 |  | 163 | 10413 |  | 10413 | (2237) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;El Paso | 1601 Northwestern Drive |  | 9052 | 1248 | 850 | 9902 | 1248 | 11150 | (2491) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;El Paso | 6500 N. Desert Boulevard |  | 7518 | 1124 | 474 | 7992 | 1124 | 9116 | (1992) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;El Paso | 1550 Northwestern Drive |  | 14011 | 1854 | 2433 | 16444 | 1854 | 18298 | (4037) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;El Paso | 1701 Northwestern Drive |  | 9897 | 1581 | 2031 | 11928 | 1581 | 13509 | (2716) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;El Paso | 7801 Northern Pass Road |  | 5893 | 1136 |  | 5893 | 1136 | 7029 | (1628) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;El Paso | 12285 Gateway Boulevard West |  | 22571 | 1725 |  | 22571 | 1725 | 24296 | (872) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;El Paso | 9571 Pan American Drive |  | 9382 | 1101 |  | 9382 | 1101 | 10483 | (145) | 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;El Paso | 9555 Plaza Circle |  | 4666 | 626 | 128 | 4794 | 626 | 5420 | (86) | 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;El Paso | 9494 Escobar Drive |  | 8551 | 701 |  | 8551 | 701 | 9252 | (133) | 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;El Paso | 47 Butterfield Circle & 12 Leigh Fisher Boulevard |  | 3096 |  | 1588 | 4684 |  | 4684 | (1604) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Garland | 2901 W. Kingsley Road |  | 5166 | 1344 | 3230 | 8396 | 1344 | 9740 | (1740) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Grapevine | 2402 Esters Boulevard |  | 9522 |  | 84 | 9606 |  | 9606 | (393) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Grapevine | 2400 Esters Boulevard |  | 15029 |  | 301 | 15330 |  | 15330 | (619) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Houston | 18601 Intercontinental Crossing Drive |  | 8744 | 1505 |  | 8744 | 1505 | 10249 | (1327) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Houston | 9302 Ley Road |  | 8879 | 1236 |  | 8879 | 1236 | 10115 | (991) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Houston | 10343 Ella Boulevard |  | 16586 | 1747 |  | 16586 | 1747 | 18333 | (1447) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Houston | 4949 Windfern Road |  | 7610 | 2255 | 405 | 8015 | 2255 | 10270 | (2177) | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Houston | 1020 Rankin Road |  | 4802 | 565 | 957 | 5759 | 565 | 6324 | (1681) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Houston | 7300 Airport Boulevard |  | 14087 | 2546 | 1053 | 15140 | 2546 | 17686 | (2249) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Houston | 13627 West Hardy |  | 4989 | 1502 |  | 4989 | 1502 | 6491 | (1407) | 2017 |

---

------

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | **Initial Cost to STAG Industrial, Inc.** | **Initial Cost to STAG Industrial, Inc.** | | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | | |
|<br>**State & City** |<br>**Address** |<br>**Encumbrances**<sup>(1)</sup> | **Building & Improvements**<sup>(2)</sup> | **Land**<sup>(3)</sup> |<br>**Costs Capitalized Subsequent to Acquisition and Valuation Provision** | **Building & Improvements** | **Land** | **Total** |<br>**Accumulated Depreciation**<sup>(4)</sup> |<br>**Year Acquired** |
| &nbsp;&nbsp;&nbsp;&nbsp;Houston | 868 Pear Street |  | 5508 | 953 |  | 5508 | 953 | 6461 | (1347) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Houston | 14620 Henry Road |  | 7052 | 927 | 66 | 7118 | 927 | 8045 | (1299) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Houston | 7049 Brookhollow West Drive |  | 9371 | 809 | 15 | 9386 | 809 | 10195 | (1321) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Houston | 10401 S. Sam Houston Parkway |  | 9456 | 1108 | 318 | 9774 | 1108 | 10882 | (948) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Humble | 18727 Kenswick Drive |  | 21476 | 2255 |  | 21476 | 2255 | 23731 | (2345) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Katy | 1800 North Mason Road |  | 7571 | 2192 |  | 7571 | 2192 | 9763 | (1003) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Katy | 21601 Park Row Drive |  | 3421 | 1655 |  | 3421 | 1655 | 5076 | (432) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Laredo | 13710 IH 35 Frontage Road |  | 13847 | 2538 |  | 13847 | 2538 | 16385 | (1752) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Laredo | 13808 Humphrey Road |  | 12410 | 1535 |  | 12410 | 1535 | 13945 | (2390) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;McAllen | 5601 West Military Highway |  | 13549 | 818 | 1584 | 15133 | 818 | 15951 | (914) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mission | 802 Trinity Street |  | 12623 | 1882 | 572 | 13195 | 1882 | 15077 | (2114) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Rockwall | 3400 Discovery Boulevard |  | 16066 | 2683 |  | 16066 | 2683 | 18749 | (3471) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stafford | 13720 Stafford Road |  | 6570 | 339 | 41 | 6611 | 339 | 6950 | (1107) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Waco | 101 Apron Road |  | 1394 |  | 922 | 2316 |  | 2316 | (754) | 2011 |
| **Utah** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Provo | 3715 S. Tracy Hall Parkway |  | 27225 | 1945 |  | 27225 | 1945 | 29170 | (1080) | 2021 |
| **Virginia** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Chester | 2001 Ware Bottom Spring Road |  | 3402 | 775 |  | 3402 | 775 | 4177 | (1114) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fredericksburg | 2031 International Parkway |  | 15235 | 2182 |  | 15235 | 2182 | 17417 | (268) | 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Harrisonburg | 4500 Early Road |  | 11057 | 1455 | 1180 | 12237 | 1455 | 13692 | (3241) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Independence | One Compair Way |  | 2061 | 226 |  | 2061 | 226 | 2287 | (578) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;North Chesterfield | 8001 Greenpine Road |  | 6174 | 1599 |  | 6174 | 1599 | 7773 | (898) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Norfolk | 4555 Progress Road |  | 7989 | 1259 |  | 7989 | 1259 | 9248 | (140) | 2022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Richmond | 5250 Klockner Drive |  | 3801 | 819 | 726 | 4527 | 819 | 5346 | (638) | 2020 |
| **Washington** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Ridgefield | 6111 S. 6th Way |  | 9711 | 2307 | 780 | 10491 | 2307 | 12798 | (1320) | 2019 |
| **Wisconsin** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Appleton | 1919 W. College Avenue |  | 5757 | 261 |  | 5757 | 261 | 6018 | (296) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Caledonia | 1343 27th Street |  | 3339 | 225 |  | 3339 | 225 | 3564 | (550) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cudahy | 5831 S. Pennsylvania Avenue |  | 4778 | 1427 |  | 4778 | 1427 | 6205 | (493) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;De Pere | 2191 American Boulevard |  | 6042 | 525 | 101 | 6143 | 525 | 6668 | (1872) | 2012 |
| &nbsp;&nbsp;&nbsp;&nbsp;DeForest | 505-507 Stokely Drive |  | 5298 | 1131 | 592 | 5890 | 1131 | 7021 | (1111) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Delavan | 329 Hallberg Street |  | 2059 | 127 | 30 | 2089 | 127 | 2216 | (306) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Delavan | 1714 Hobbs Drive |  | 4676 | 241 | 69 | 4745 | 241 | 4986 | (634) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;East Troy | 2761 Buell Drive |  | 4936 | 304 | 57 | 4993 | 304 | 5297 | (1163) | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;Elkhorn | 555 Koopman Lane |  | 3897 | 351 | 493 | 4390 | 351 | 4741 | (570) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Elkhorn | 390 Koopman Lane |  | 3621 | 210 |  | 3621 | 210 | 3831 | (485) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Franklin | 5215 W Airways Avenue |  | 8193 | 1551 |  | 8193 | 1551 | 9744 | (411) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Germantown | N117 W18456 Fulton Drive |  | 6023 | 442 |  | 6023 | 442 | 6465 | (858) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Germantown | N106 W13131 Bradley Way |  | 3296 | 359 | 222 | 3518 | 359 | 3877 | (561) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Germantown | N102 W19400 Willow Creek Way |  | 10908 | 1175 |  | 10908 | 1175 | 12083 | (1533) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Germantown | 11900 N. River Lane |  | 5977 | 1186 |  | 5977 | 1186 | 7163 | (1818) | 2014 |

---

------

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | **Initial Cost to STAG Industrial, Inc.** | **Initial Cost to STAG Industrial, Inc.** | | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | **Gross Amounts at Which Carried at December 31, 2022** | | |
|<br>**State & City** |<br>**Address** |<br>**Encumbrances**<sup>(1)</sup> | **Building & Improvements**<sup>(2)</sup> | **Land**<sup>(3)</sup> |<br>**Costs Capitalized Subsequent to Acquisition and Valuation Provision** | **Building & Improvements** | **Land** | **Total** |<br>**Accumulated Depreciation**<sup>(4)</sup> |<br>**Year Acquired** |
| &nbsp;&nbsp;&nbsp;&nbsp;Hartland | 500 North Shore Drive |  | 4634 | 1526 |  | 4634 | 1526 | 6160 | (1057) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hudson | 2700 Harvey Street |  | 7982 | 683 | 6 | 7988 | 683 | 8671 | (809) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Janesville | 2929 Venture Drive |  | 17477 | 828 | 979 | 18456 | 828 | 19284 | (5073) | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Kenosha | 9625 55th Street |  | 3968 | 797 | 763 | 4731 | 797 | 5528 | (1117) | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;Madison | 4718 Helgesen Drive |  | 6365 | 609 | 475 | 6840 | 609 | 7449 | (1118) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Madison | 4722 Helgesen Drive |  | 4489 | 444 | 39 | 4528 | 444 | 4972 | (725) | 2017 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mayville | 605 Fourth Street |  | 4118 | 547 | 623 | 4741 | 547 | 5288 | (1963) | 2007 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mukwonago | 103 Hill Court |  | 10844 | 1478 | 219 | 11063 | 1478 | 12541 | (479) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Muskego | S64 W15660 Commerce Center Parkway |  | 5497 | 393 | 154 | 5651 | 393 | 6044 | (642) | 2020 |
| &nbsp;&nbsp;&nbsp;&nbsp;New Berlin | 16250 West Woods Edge Drive |  | 15917 | 277 |  | 15917 | 277 | 16194 | (1468) | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;New Berlin | 16555 W. Smalls Road |  | 20176 | 955 |  | 20176 | 955 | 21131 | (652) | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;New Berlin | 5600 S. Moorland Road |  | 6409 | 1068 | 43 | 6452 | 1068 | 7520 | (1696) | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Oak Creek | 525 West Marquette Avenue |  | 4350 | 526 |  | 4350 | 526 | 4876 | (759) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Oak Creek | 7475 South 6th Street |  | 6125 | 805 | 355 | 6480 | 805 | 7285 | (1002) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pewaukee | W288 N2801 Duplainville Road |  | 6678 | 841 | 1001 | 7679 | 841 | 8520 | (1474) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pewaukee | W277 N2837 Duplainville Road |  | 4516 | 439 | 52 | 4568 | 439 | 5007 | (796) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pleasant Prairie | 10411 80th Avenue |  | 18219 | 2297 |  | 18219 | 2297 | 20516 | (2042) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pleasant Prairie | 8901 102nd Street |  | 4949 | 523 | 440 | 5389 | 523 | 5912 | (886) | 2018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sun Prairie | 1615 Commerce Drive |  | 5809 | 2360 | 2499 | 8308 | 2360 | 10668 | (2811) | 2011 |
| &nbsp;&nbsp;&nbsp;&nbsp;West Allis | 2207 S. 114th Street |  | 1757 | 462 | 2024 | 3781 | 462 | 4243 | (808) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;West Allis | 2075 S. 114th Street |  | 1848 | 444 | 1698 | 3546 | 444 | 3990 | (655) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;West Allis | 2145 S. 114th Street |  | 846 | 252 | 1051 | 1897 | 252 | 2149 | (400) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;West Allis | 2025 S. 114th Street |  | 956 | 251 | 801 | 1757 | 251 | 2008 | (329) | 2015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Yorkville | 13900 West Grandview Parkway |  | 4886 | 416 | 323 | 5209 | 416 | 5625 | (1165) | 2014 |
|  | **Total** | $**(8040)** | $**5197960** | $**647663** | $**277672** | $**5475632** | $**647663** | $**6123295** | $**(764809)** |  |

---

(1)Balance excludes the net unamortized balance of fair market value discount of approximately $0.1 million and unamortized deferred financing fees and debt issuance costs of approximately $5,000.

(2)The initial costs of buildings and improvements is the acquisition costs plus building expansions and non-cash transfers of acquired other assets to initial cost of building and improvements, less asset impairment write-downs and disposals of building and tenant improvements.

(3)Represents values at acquisition date less any impairments.

(4)Depreciation expense is computed using the straight-line method based on the following estimated useful lives:

---

| | |
|:---|:---|
| **Description** | **Estimated Useful Life** |
| Building | 40 Years |
| Building and land improvements (maximum) | 20 Years |
| Tenant improvements | Shorter of useful life or terms of related lease |

---

As of December 31, 2022, the aggregate cost for federal income tax purposes of investments in real estate was approximately $7.1 billion.

------

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| | **2022** | **2021** | **2020** |
| **Real Estate:** |  |  |  |
| Balance at beginning of period | $5664907 | $4521301 | $3959883 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions during period |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other acquisitions | 423918 | 1217478 | 664616 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Improvements, etc. | 120151 | 40797 | 59702 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other additions |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deductions during period |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of real estate sold | (80470) | (107192) | (152716) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Write-off of tenant improvements | (3428) | (7477) | (5025) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset impairments and involuntary conversion | (1783) |  | (5159) |
| Balance at the end of the period including assets held for sale | 6123295 | 5664907 | 4521301 |
| Assets held for sale | (6324) |  | (562) |
| Balance at the end of the period excluding assets held for sale | $6116971 | $5664907 | $4520739 |
| **Accumulated Depreciation:** |  |  |  |
| Balance at beginning of period | $611867 | $495466 | $393506 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additions during period |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense | 170088 | 142966 | 126382 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other additions |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deductions during period |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disposals | (17146) | (26565) | (24422) |
| Balance at the end of the period including assets held for sale | 764809 | 611867 | 495466 |
| Assets held for sale | (1681) |  | (118) |
| Balance at the end of the period excluding assets held for sale | $763128 | $611867 | $495348 |

---

## Exhibit 10.1

**Exhibit 10.1**

**SECOND AMENDED AND RESTATED<br>AGREEMENT OF LIMITED PARTNERSHIP<br>OF<br>STAG INDUSTRIAL OPERATING PARTNERSHIP, L.P.<br>a Delaware limited partnership**

THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION, UNLESS THE TRANSFEROR DELIVERS TO THE PARTNERSHIP AN OPINION OF COUNSEL, IN FORM AND SUBSTANCE SATISFACTORY TO THE PARTNERSHIP, TO THE EFFECT THAT THE PROPOSED SALE, TRANSFER OR OTHER DISPOSITION MAY BE EFFECTED WITHOUT REGISTRATION UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES OR "BLUE SKY" LAWS.

------

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| **Article** | **Page** |

---

---

| | |
|:---|:---|
| <u>[Article 1 DEFINED TERMS](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 1 |
| <u>[Article 2 ORGANIZATIONAL MATTERS](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 12 |
| <u>[Section 2.1](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Continuation.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 12 |
| <u>[Section 2.2](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Name.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | [1](#idcf00b8251d045b6b5bcaa3115e4a945_7)2 |
| <u>[Section 2.3](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Registered Office and Agent; Principal Office.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 12 |
| <u>[Section 2.4](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Power of Attorney.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 13 |
| <u>[Section 2.5](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Term.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 14 |
| <u>[Section 2.6](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Partnership Interests Are Securities.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 14 |
| <u>[Article 3 PURPOSE](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 14 |
| <u>[Section 3.1](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Purpose and Business.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 14 |
| <u>[Section 3.2](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Powers.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 14 |
| <u>[Section 3.3](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Representations and Warranties by the Parties.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 15 |
| <u>[Section 3.4](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Not Publicly Traded.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 16 |
| <u>[Article 4 CAPITAL CONTRIBUTIONS](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 16 |
| <u>[Section 4.1](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Capital Contributions of the Partners.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 16 |
| <u>[Section 4.2](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Issuances of Additional Partnership Interests.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 17 |
| <u>[Section 4.3](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Contribution of Proceeds of Issuance of Securities by STAG REIT.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 18 |
| <u>[Section 4.4](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Additional Funds.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 18 |
| <u>[Section 4.5](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Preemptive Rights.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 19 |
| <u>[Section 4.6](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[LTIP Units.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 19 |
| <u>[Article 5 DISTRIBUTIONS](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 21 |
| <u>[Section 5.1](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Requirement and Characterization of Distributions.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 21 |
| <u>[Section 5.2](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Amounts Withheld.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 22 |
| <u>[Section 5.3](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Distributions upon Liquidation.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 22 |
| <u>[Section 5.4](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Restricted Distributions.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 22 |
| <u>[Article 6 ALLOCATIONS](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 22 |
| <u>[Section 6.1](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Allocations for Capital Account Purposes.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 22 |
| <u>[Article 7 MANAGEMENT AND OPERATIONS OF BUSINESS](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 25 |
| <u>[Section 7.1](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Management.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 25 |
| <u>[Section 7.2](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Certificate of Limited Partnership.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 28 |
| <u>[Section 7.3](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Restrictions on General Partner Authority.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 29 |
| <u>[Section 7.4](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Reimbursement of the General Partner.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 29 |
| <u>[Section 7.5](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Outside Activities of the General Partner.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 30 |
| <u>[Section 7.6](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Contracts with Affiliates.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 30 |
| <u>[Section 7.7](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Indemnification.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 31 |

---

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**TABLE OF CONTENTS** <br> (continued)

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| | |
|:---|:---|
| **Article** | **Page** |

---

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| | |
|:---|:---|
| <u>[Section 7.8](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Liability of the General Partner.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 32 |
| <u>[Section 7.9](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Other Matters Concerning the General Partner.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 33 |
| <u>[Section 7.10](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Title to Partnership Assets.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 34 |
| <u>[Section 7.11](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Reliance by Third Parties.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 34 |
| <u>[Article 8 RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 34 |
| <u>[Section 8.1](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Limitation of Liability.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 34 |
| <u>[Section 8.2](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Management of Business.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 34 |
| <u>[Section 8.3](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Outside Activities of Limited Partners.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 35 |
| <u>[Section 8.4](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Return of Capital.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 35 |
| <u>[Section 8.5](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Rights of Limited Partners Relating to the Partnership.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 35 |
| <u>[Section 8.6](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Redemption Right.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 36 |
| <u>[Section 8.7](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Conversion of LTIP Units.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 37 |
| <u>[Section 8.8](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Voting Rights of LTIP Units.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 40 |
| <u>[Article 9 BOOKS, RECORDS, ACCOUNTING AND REPORTS](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 40 |
| <u>[Section 9.1](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Records and Accounting.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 40 |
| <u>[Section 9.2](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Fiscal Year.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 41 |
| <u>[Section 9.3](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Reports.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 41 |
| <u>[Article 10 TAX MATTERS](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 41 |
| <u>[Section 10.1](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Preparation of Tax Returns.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 41 |
| <u>[Section 10.2](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Tax Elections.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 41 |
| <u>[Section 10.3](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Tax Matters Partner/Partnership Representative.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 42 |
| <u>[Section 10.4](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Organizational Expenses.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 43 |
| <u>[Section 10.5](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Withholding.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 43 |
| <u>[Article 11 TRANSFERS AND WITHDRAWALS](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 44 |
| <u>[Section 11.1](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Transfer.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 44 |
| <u>[Section 11.2](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Transfer of General Partner's Partnership Interest.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 44 |
| <u>[Section 11.3](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Transfer of Limited Partners' Partnership Interests.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 46 |
| <u>[Section 11.4](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Substituted Limited Partners.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 47 |
| <u>[Section 11.5](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Assignees.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 47 |
| <u>[Section 11.6](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[General Provisions.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 48 |
| <u>[Article 12 ADMISSION OF PARTNERS](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 48 |
| <u>[Section 12.1](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Admission of Successor General Partner.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 48 |
| <u>[Section 12.2](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Admission of Additional Limited Partners.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 49 |
| <u>[Section 12.3](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Amendment of Agreement and Certificate of Limited Partnership.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 49 |
| <u>[Section 12.4](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Limit on Number of Partners.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 49 |
| <u>[Article 13 DISSOLUTION, LIQUIDATION AND TERMINATION](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 50 |
| <u>[Section 13.1](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Dissolution.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 50 |
| <u>[Section 13.2](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Winding Up.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 50 |

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ii

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**TABLE OF CONTENTS** <br> (continued)

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| | |
|:---|:---|
| **Article** | **Page** |

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| | |
|:---|:---|
| <u>[Section 13.3](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Compliance with Timing Requirements of Regulations.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 52 |
| <u>[Section 13.4](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[\[Reserved\].](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 52 |
| <u>[Section 13.5](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Rights of Limited Partners.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 52 |
| <u>[Section 13.6](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Notice of Dissolution.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 52 |
| <u>[Section 13.7](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Termination of Partnership and Cancellation of Certificate of Limited Partnership.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 52 |
| <u>[Section 13.8](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Reasonable Time for Winding Up.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 53 |
| <u>[Section 13.9](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Waiver of Partition.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 53 |
| <u>[Article 14 AMENDMENT OF PARTNERSHIP AGREEMENT; MEETINGS](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 53 |
| <u>[Section 14.1](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Amendment of Partnership Agreement.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 53 |
| <u>[Section 14.2](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Meetings of the Partners.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 54 |
| <u>[Article 15 GENERAL PROVISIONS](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 55 |
| <u>[Section 15.1](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Addresses and Notice.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 55 |
| <u>[Section 15.2](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Titles and Captions.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 55 |
| <u>[Section 15.3](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Pronouns and Plurals.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 55 |
| <u>[Section 15.4](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Further Action.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 56 |
| <u>[Section 15.5](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Binding Effect.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 56 |
| <u>[Section 15.6](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Creditors.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 56 |
| <u>[Section 15.7](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Waiver.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 56 |
| <u>[Section 15.8](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Counterparts.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 56 |
| <u>[Section 15.9](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Applicable Law.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 56 |
| <u>[Section 15.10](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Invalidity of Provisions.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 57 |
| <u>[Section 15.11](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[Entire Agreement.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 57 |
| <u>[Section 15.12](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#idcf00b8251d045b6b5bcaa3115e4a945_7)<u>[No Rights as Stockholders of STAG REIT.](#idcf00b8251d045b6b5bcaa3115e4a945_7)</u> | 57 |

---

EXHIBITS

Exhibit A — Partners' Contributions and Partnership Interests

Exhibit B — Capital Account Maintenance

Exhibit C — Special Allocation Rules

Exhibit D — Notice of Redemption

Exhibit E — Constructive Ownership Definition

Exhibit F — Notice of Conversion

Exhibit G — Notice of Forced Conversion

Exhibit H — Schedule of Partners' Ownership with Respect to Tenants

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**SECOND AMENDED AND RESTATED<br>AGREEMENT OF LIMITED PARTNERSHIP<br>OF<br>STAG INDUSTRIAL OPERATING PARTNERSHIP, L.P.**

THIS SECOND AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF STAG INDUSTRIAL OPERATING PARTNERSHIP, L.P. (this "<u>Agreement</u>"), dated as of February 15, 2023, is entered into by and among STAG Industrial GP, LLC, a Delaware limited liability company (the "<u>General Partner</u>"), STAG REIT (as defined below) and the other Persons (as defined below) that are party hereto from time to time and whose names are set forth on <u>Exhibit A</u> as attached hereto (as it may be amended from time to time) (each, a "<u>Limited Partner</u>").

WHEREAS, the limited partnership was formed on December 21, 2009 and an Agreement of Limited Partnership, dated as of December 21, 2009 (the "<u>Original Agreement</u> "), was entered into between the General Partner, as general partner, and STAG REIT and STAG Investments II, LLC, a Delaware limited liability company, as the initial limited partners, which Original Agreement was then amended and restated on April 20, 2011 (the "<u>Amended and Restated Agreement</u>").

WHEREAS, the Amended and Restated Agreement was amended in that certain First Amendment to the Amended and Restated Agreement, dated as of November 2, 2011, that certain Second Amendment to the Amended and Restated Agreement, dated as of April 16, 2013, and that certain Third Amendment to the Amended and Restated Agreement, dated as of March 17, 2016 (collectively, the "Amendments"), in connection with the issuance of certain preferred stock by STAG REIT.

WHEREAS, STAG REIT has redeemed all of its preferred stock and the Partnership has redeemed its corresponding Preferred Units, and no Preferred Units are currently outstanding.

WHEREAS, the General Partner desires to reflect changes that do not adversely affect the rights of the Limited Partners hereunder in any material respect, to cure ambiguity, correct or supplement any provision in this Agreement not inconsistent with law or with other provisions, and to make other changes with respect to matters arising under this Agreement that will not be inconsistent with law or with the provisions of this Agreement;

WHEREAS, the General Partner desires to amend and restate the Amended and Restated Agreement in its entirety and enter into this Second Amended and Restated Agreement of Limited Partnership of the Partnership.

NOW, THEREFORE, in consideration of the mutual covenants herein contained, and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the foregoing recitals are incorporated into, and made a part of this Agreement, and the parties hereto hereby further agree as follows:

**ARTICLE 1**

**DEFINED TERMS**

The following definitions shall be for all purposes, unless otherwise clearly indicated to the contrary, applied to the terms used in this Agreement.

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"<u>704(c) Value</u>" means (i) in the case of Contributed Property, the fair market value of such Contributed Property or other consideration at the time of contribution, and (ii) in the case of Adjusted Property, the fair market value of such Adjusted Property at the time its carrying value is adjusted pursuant to <u>Exhibit B</u>, in each case as determined by the General Partner using such reasonable method of valuation as it may adopt. Subject to <u>Exhibit B</u> hereof, the General Partner shall, in its sole and absolute discretion, use such method as it deems reasonable and appropriate to allocate the aggregate of the 704(c) Values of Contributed Properties or Adjusted Properties in a single or integrated transaction among separate properties on a basis proportional to their respective fair market values.

"<u>Act</u>" means the Delaware Revised Uniform Limited Partnership Act, 6 Del. C. §17-101, et seq., as it may be amended from time to time, and any successor to such statute.

"<u>Additional Funds</u>" has the meaning set forth in <u>Section 4.4(a)</u> hereof.

"<u>Additional Limited Partner</u>" means a Person admitted to the Partnership as a Limited Partner pursuant to <u>Section 12.2</u> hereof and who is shown as such on the books and records of the Partnership.

"<u>Adjusted Capital Account</u>" means the Capital Account maintained for each Partner as of the end of each Partnership taxable year (i) increased by any amounts which such Partner is obligated to restore pursuant to any provision of this Agreement or is deemed to be obligated to restore pursuant to the penultimate sentences of Regulations Sections 1.704-2(g)(l) and 1.704-2(i)(5) and (ii) decreased by the items described in Regulations Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5), and 1.704-1(b)(2)(ii)(d)(6). The foregoing definition of Adjusted Capital Account is intended to comply with the provisions of Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith.

"<u>Adjusted Capital Account Deficit</u>" means, with respect to any Partner, the deficit balance, if any, in such Partner's Adjusted Capital Account as of the end of the relevant Partnership taxable year.

"<u>Adjusted Property</u>" means any property, the Carrying Value of which has been adjusted pursuant to <u>Exhibit B</u> hereof.

"<u>Adjustment Event</u>" means any of the following events: (i) the Partnership makes a distribution on all outstanding Common Units in Common Units; (ii) the Partnership subdivides the outstanding Common Units into a greater number of Common Units or combines the outstanding Common Units into a smaller number of Common Units; or (iii) the Partnership issues any OP Units in exchange for its outstanding Common Units by way of a reclassification or recapitalization of its Common Units. If more than one Adjustment Event occurs, the adjustment to the LTIP Units under <u>Section 4.6(a)</u> need be made only once using a single formula that takes into account each and every Adjustment Event as if all Adjustment Events occurred simultaneously. For the avoidance of doubt, the following shall not be Adjustment Events: (x) the issuance of OP Units in a financing, reorganization, acquisition or other similar business transaction, (y) the issuance of OP Units pursuant to the Plan, or any other long-term incentive plan, any employee benefit or compensation plan or distribution reinvestment plan, or (z) the issuance of any OP Units to STAG REIT in respect of a capital contribution to the Partnership of proceeds from the sale of securities by STAG REIT.

"<u>Affiliate</u>" means, with respect to any Person, any Person directly or indirectly controlling, controlled by or under common control with such Person. For the purposes of this definition, "control" when used with respect to any Person means the possession, directly or indirectly, of the power, alone or together, to direct or cause the direction of the management and

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policies of such Person, whether through the ownership of voting securities, by contract or otherwise, and the terms "controlling" and "controlled" have meanings correlative to the foregoing.

"<u>Agreed Value</u>" means (i) in the case of any Contributed Property as of the time of its contribution to the Partnership, the 704(c) Value of such property, as reduced by any liabilities either assumed by the Partnership upon such contribution or to which such property is subject when contributed; and (ii) in the case of any property distributed to a Partner by the Partnership, the Partnership's Carrying Value of such property at the time such property is distributed, reduced by any indebtedness either assumed by such Partner upon such distribution or to which such property is subject at the time of distribution as determined under Section 752 of the Code and the Regulations thereunder.

"<u>Agreement</u>" means this Second Amended and Restated Agreement of Limited Partnership of the Partnership, as it may be amended, supplemented or restated from time to time.

"<u>Assignee</u>" means a Person to whom all or a portion of a Partnership Interest has been transferred in a manner permitted under this Agreement, but who has not become a Substituted Limited Partner, and who has the rights set forth in <u>Section 11.5</u>.

"<u>Available Cash</u>" means, with respect to any period for which such calculation is being made, all cash revenues and funds received plus any reduction in reserves and less interest and principal payments on debt, all cash expenditures (including capital expenditures), investments in any entity and any additions to reserves and other adjustments, as determined by the General Partner in its sole and absolute discretion.

"<u>Board of Directors</u>" means the Board of Directors of STAG REIT.

"<u>Book-Tax Disparities</u>" means, with respect to any item of Contributed Property or Adjusted Property, as of the date of any determination, the difference between the Carrying Value of such Contributed Property or Adjusted Property and the adjusted basis thereof for federal income tax purposes as of such date. A Partner's share of the Partnership's Book-Tax Disparities in all of its Contributed Property and Adjusted Property will be reflected by the difference between such Partner's Capital Account balance as maintained pursuant to <u>Exhibit B</u> and the hypothetical balance of such Partner's Capital Account computed as if it had been maintained strictly in accordance with federal income tax accounting principles.

"<u>Business Day</u>" means any day except a Saturday, Sunday or other day on which banking institutions in New York, New York or Boston, Massachusetts are authorized or required by law, regulation or executive order to close.

"<u>Capital Account</u>" means the Capital Account maintained for a Partner pursuant to <u>Exhibit B</u> hereof.

"<u>Capital Account Limitation</u>" has the meaning set forth in <u>Section 8.7(a)</u>.

"<u>Capital Contribution</u>" means, with respect to any Partner, any cash, cash equivalents or the Agreed Value of Contributed Property which such Partner contributes or is deemed to contribute to the Partnership pursuant to <u>Sections 4.1</u>, <u>4.2</u>, or <u>4.3</u> hereof.

"<u>Carrying Value</u>" means (i) with respect to a Contributed Property or Adjusted Property, the 704(c) Value of such property, reduced (but not below zero) by all Depreciation with respect to such property charged to the Partners' Capital Accounts following the contribution of or

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adjustment with respect to such property; and (ii) with respect to any other Partnership property, the adjusted basis of such property for federal income tax purposes, all as of the time of determination. The Carrying Value of any property shall be adjusted from time to time in accordance with <u>Exhibit B</u> hereof, and to reflect changes, additions or other adjustments to the Carrying Value for dispositions and acquisitions of Partnership properties, as deemed appropriate by the General Partner.

"<u>Cash Amount</u>" means an amount of cash per Common Unit equal to the Value on the Valuation Date of the REIT Shares Amount.

"<u>Certificate</u>" means the Certificate of Limited Partnership of the Partnership as filed in the office of the Delaware Secretary of State on December 21, 2009, as amended and/or restated from time to time in accordance with the terms hereof and the Act.

"<u>Charter</u>" means the Articles of Amendment and Restatement of STAG REIT filed with the State Department of Assessments and Taxation of the State of Maryland on April 7, 2011, as amended and/or restated from time to time.

"<u>Closing Date</u>" means the date of consummation of the first sale of REIT Shares pursuant to the Initial Public Offering.

"<u>Code</u>" means the Internal Revenue Code of 1986, as amended and in effect from time to time or any successor statute thereto, as interpreted by the applicable regulations thereunder. Any reference herein to a specific section or sections of the Code shall be deemed to include a reference to any corresponding provision of future law.

"<u>Common Units</u>" means the OP Units that are designated as Common Units of the Partnership.

"<u>Common Unit Economic Balance</u>" has the meaning set forth in <u>Section 6.1(c)</u>."<u>Compensation Committee</u>" means (i) the Compensation Committee of the Board of Directors, or (ii) if the Board then administers the Plan or has appointed another committee the authority to administer the Plan, the Board or such committee(s)..

"<u>Consent</u>" means the consent to, approval of, or vote in favor of a proposed action by a Partner given in accordance with <u>Section 14.2</u> hereof.

"<u>Constituent Person</u>" has the meaning set forth in <u>Section 8.7(g)</u>.

"<u>Constructively Own</u>" means ownership under the constructive ownership rules described in <u>Exhibit E</u>.

"<u>Contributed Property</u>" means each property or other asset, in such form as may be permitted by the Act (but excluding cash), contributed or deemed contributed to the Partnership. Once the Carrying Value of a Contributed Property is adjusted pursuant to <u>Exhibit B</u> hereof, such property shall no longer constitute a Contributed Property for purposes of <u>Exhibit B</u> hereof, but shall be deemed an Adjusted Property for such purposes.

"<u>Conversion Date</u>" has the meaning set forth in <u>Section 8.7(b)</u>.

"<u>Conversion Factor</u>" means 1.0, subject to adjustment as follows: (i) in case STAG REIT shall (A) make a distribution on the outstanding REIT Shares in REIT Shares and the Partnership does not make a corresponding distribution with respect to all Common Units, (B) subdivide or reclassify the outstanding REIT Shares into a greater number of REIT Shares, or (C) combine or

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reclassify the outstanding REIT Shares into a smaller number of REIT Shares, the Conversion Factor in effect at the opening of business on the day following the date fixed for the determination of stockholders entitled to receive such distribution or subject to such subdivision, combination or reclassification shall be proportionately adjusted so that a holder of Common Units shall be entitled to receive, upon exchange thereof, the number of REIT Shares which the holder would have owned at the opening of business on the day following the date fixed for such determination had such Common Units been exchanged immediately prior to such determination; (ii) in case the Partnership shall subdivide or reclassify the outstanding Common Units into a greater number of Common Units, the Conversion Factor in effect at the opening of business on the day following the date fixed for the determination of Common Unit holders subject to such subdivision or reclassification shall be proportionately adjusted so that a holder of Common Units shall be entitled to receive, upon exchange thereof, the number of REIT Shares which the holder would have owned at the opening of business on the day following the date fixed for such determination had such Common Units been exchanged immediately prior to such determination; (iii) in case the General Partner or STAG REIT distributes any rights, options or warrants to all holders of REIT Shares to subscribe for or to purchase or to otherwise acquire REIT Shares, or other securities or rights convertible into, exchangeable for or exercisable for REIT Shares, at a price per share less than the Value of a REIT Share on the record date for such distribution (each a "<u>Distributed Right</u>"), then, as of the distribution date of such Distributed Rights or, if later, the time such Distributed Rights become exercisable, the Conversion Factor shall be adjusted by multiplying the Conversion Factor previously in effect by a fraction (a) the numerator of which shall be the number of REIT Shares issued and outstanding on the record date (or, if later, the date such Distributed Rights become exercisable) plus the maximum number of REIT Shares purchasable under such Distributed Rights and (b) the denominator of which shall be the sum of (x) number of REIT Shares issued and outstanding on the record date (or, if later, the date such Distributed Rights become exercisable) plus (y) a fraction (1) the numerator of which is the maximum number of REIT Shares purchasable under such Distributed Rights times the minimum purchase price per REIT Share under such Distributed Rights and (2) the denominator of which is the Value of a REIT Share as of the record date (or, if later, the date such Distributed Rights become exercisable);

<u>provided</u>, <u>however</u>, that, if any such Distributed Rights expire or become no longer exercisable, then the Conversion Factor shall be adjusted, effective retroactive to the date of distribution of the Distributed Rights, to reflect a reduced maximum number of REIT Shares or any change in the minimum purchase price for the purposes of the above fraction; and (iv) in case STAG REIT shall, by distribution or otherwise, distribute to all holders of its REIT Shares, (A) capital shares of any class other than its REIT Shares, (B) evidence of its indebtedness or (C) assets (excluding any rights or warrants referred to in clause (iii) above, any cash distribution lawfully paid under the laws of the state of organization of STAG REIT, and any distribution referred to in clause (i) above) and shall not cause a corresponding distribution to be made to all holders of Common Units, the Conversion Factor shall be adjusted so that the same shall equal the ratio determined by multiplying the Conversion Factor in effect immediately prior to the close of business on the date fixed for the determination of stockholders entitled to receive such distribution by a fraction of which the numerator shall be the Daily Market Price per REIT Share on the date fixed for such determination, and of which the denominator shall be such Daily Market Price per REIT Share less the fair market value (as determined by the Board of Directors, whose determination shall be conclusive and described in a Board resolution certified by the Secretary of STAG REIT and delivered to the holders of the Common Units) of the portion of the capital shares or evidences of indebtedness or assets so distributed applicable to one REIT Share, such adjustment to become effective immediately prior to the opening of business on the day following the date fixed for the determination of stockholders entitled to receive such distribution.

"<u>Conversion Notice</u>" has the meaning set forth in <u>Section 8.7(b)</u>.

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"<u>Conversion Right</u>" has the meaning set forth in <u>Section 8.7(a)</u>.

"<u>Covered Person</u>" has the meaning set forth in <u>Section 7.8(a)</u>.

"<u>Daily Market Price</u>" means, with respect to a Trading Day, the last sale price for REIT Shares, or, in case no such sale takes place on such day, the average of the closing bid and asked prices for REIT Shares, in either case as reported in the principal consolidated transaction reporting system with respect to securities listed or admitted to trading on the New York Stock Exchange or, if such REIT Shares are not listed or admitted to trading on the New York Stock Exchange, as reported on the principal consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which such REIT Shares are listed or admitted to trading or, if such REIT Shares are not listed or admitted to trading on any national securities exchange, the last quoted price, or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by the principal automated quotation system that may then be in use or, if such REIT Shares are not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in such REIT Shares selected by the Board of Directors or, in the event that no trading price is available for such REIT Shares, the fair market value of the REIT Shares, as determined in good faith by the Board of Directors.

"<u>Debt</u>" means, as to any Person, as of any date of determination; (i) all indebtedness of such Person for borrowed money or for the deferred purchase price of property or services; (ii) all amounts owed by such Person to banks or other Persons in respect of reimbursement obligations under letters of credit, surety bonds and other similar instruments guaranteeing payment or other performance of obligations by such Person; (iii) all indebtedness for borrowed money or for the deferred purchase price of property or services secured by any lien on any property owned by such Person, to the extent attributable to such Person's interest in such property, even though such Person has not assumed or become liable for the payment thereof; and (iv) obligations of such Person incurred in connection with entering into a lease which, in accordance with GAAP, should be capitalized.

"<u>Depreciation</u>" means, for each taxable year or other period, an amount equal to the federal income tax depreciation, amortization, or other cost recovery deduction allowable with respect to an asset for such year or other period, except that if the Carrying Value of an asset differs from its adjusted basis for federal income tax purposes at the beginning of such year or other period, "Depreciation" shall be an amount which bears the same ratio to the beginning Carrying Value of such asset as the federal income tax depreciation, amortization, or other cost recovery deduction for such year or other period bears to the beginning adjusted tax basis of such asset; <u>provided</u>, <u>however</u>, that if the federal income tax depreciation, amortization, or other cost recovery deduction for such year or other period is zero, Depreciation shall be determined with reference to the beginning Carrying Value of such asset using any reasonable method selected by the General Partner.

"<u>Distributed Right</u>" shall have the meaning set forth in subsection (iii) of the definition of "Conversion Factor."

"<u>Distribution Payment Date</u>" means the dates upon which the General Partner makes distributions in accordance with <u>Section 5.1</u> of this Agreement.

"<u>Economic Capital Account Balances</u>" has the meaning set forth in <u>Section 6.1(c)</u>.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, as amended and in effect from time to time, as interpreted by the applicable regulations thereunder. Any reference

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herein to a specific section or Title of ERISA shall be deemed to include a reference to any corresponding provision of future law.

"<u>Event of Bankruptcy</u>" has the meaning set forth in <u>Section 13.1(g)</u>.

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended, and any successor statute thereto, and the rules and regulations of the Securities and Exchange Commission promulgated thereunder.

"<u>flow through entity</u>" has the meaning set forth in <u>Section 3.3(c)(iii)</u>.

"<u>Forced Conversion</u>" has the meaning set forth in <u>Section 8.7(c)</u>.

"<u>Forced Conversion Notice</u>" has the meaning set forth in <u>Section 8.7(d)</u>.

"<u>Funding Debt</u>" means any Debt incurred by or on behalf of the General Partner or STAG REIT for the purpose of providing funds to the Partnership.

"<u>GAAP</u>" means U.S. generally accepted accounting principles.

"<u>General Partner</u>" means STAG Industrial GP, LLC, a Delaware limited liability company, or any Person who becomes an additional or a successor general partner of the Partnership. STAG Industrial, GP, LLC is wholly-owned by the STAG REIT, and is an entity that is disregarded as separate from its sole owner for federal income tax purposes under Regulations Section 301.7701-3.

"<u>General Partner Interest</u>" means a Partnership Interest held by the General Partner, in its capacity as general partner of the Partnership. A General Partner Interest may be (but is not required to be) expressed as a number of OP Units. Any OP Units owned by any Affiliate or Subsidiary of the General Partner shall be considered to constitute a Limited Partnership Interest.

"<u>Incapacity</u>" or "<u>Incapacitated</u>" means, (i) as to any individual Partner, death, total physical disability or entry by a court of competent jurisdiction adjudicating him incompetent to manage his Person or his estate; (ii) as to any corporation which is a Partner, the filing of a certificate of dissolution, or its equivalent, for the corporation or the revocation of its charter; (iii) as to any partnership or limited liability company which is a Partner, the dissolution and commencement of winding up of the partnership or limited liability company; (iv) as to any estate which is a Partner, the distribution by the fiduciary of the estate's entire interest in the Partnership; (v) as to any trustee of a trust which is a Partner, the termination of the trust (but not the substitution of a new trustee); or (vi) as to any Partner, the bankruptcy of such Partner. For purposes of this definition, bankruptcy of a Partner shall be deemed to have occurred when (a) the Partner commences a voluntary proceeding seeking liquidation, reorganization or other relief under any bankruptcy, insolvency or other similar law now or hereafter in effect; (b) the Partner is adjudged as bankrupt or insolvent, or a final and non-appealable order for relief under any bankruptcy, insolvency or similar law now or hereafter in effect has been entered against the Partner; (c) the Partner executes and delivers a general assignment for the benefit of the Partner's creditors; (d) the Partner files an answer or other pleading admitting or failing to contest the material allegations of a petition filed against the Partner in any proceeding of the nature described in clause (b) above; (e) the Partner seeks, consents to or acquiesces in the appointment of a trustee, receiver or liquidator for the Partner or for all or any substantial part of the Partner's properties; (f) any proceeding seeking liquidation, reorganization or other relief of or against such Partner under any bankruptcy, insolvency or other similar law now or hereafter in effect has not been dismissed within one hundred twenty (120) days after the commencement thereof; (g) the appointment without the Partner's consent or acquiescence of a trustee, receiver or

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liquidator has not been vacated or stayed within ninety (90) days of such appointment; or (h) an appointment referred to in clause (g) which has been stayed is not vacated within ninety (90) days after the expiration of any such stay.

"<u>Indemnitee</u>" means (i) any Person made, or threatened to be made, a party to a proceeding by reason of (a) his or its status as the General Partner, or as a trustee, director, officer, stockholder, partner, member, employee, representative or agent of STAG REIT or the General Partner or any of their Subsidiaries or as an officer, employee, representative or agent of the Partnership or (b) his or its liabilities, pursuant to a loan guarantee or otherwise, for anyindebtedness of the Partnership or any Subsidiary of the Partnership (including, without limitation, any indebtedness which the Partnership or any Subsidiary of the Partnership has assumed or taken assets subject to); and (ii) such other Persons (including Affiliates or employees of STAG REIT, the General Partner or the Partnership) as the General Partner may designate from time to time (whether before or after the event giving rise to potential liability), in its sole and absolute discretion.

"<u>IRS</u>" means the Internal Revenue Service, which administers the internal revenue laws of the United States.

"<u>Limited Partner</u>" means any Person named as a limited partner of the Partnership in <u>Exhibit A</u> attached hereto, as such Exhibit may be amended from time to time, or any Substituted Limited Partner or Additional Limited Partner, in such Person's capacity as a limited partner of the Partnership. For purposes of this Agreement and the Act, the Limited Partners shall constitute a single class or group of limited partners.

"<u>Limited Partner Interest</u>" means a Partnership Interest of a Limited Partner in the Partnership representing a fractional part of the Partnership Interests of all Partners and includes any and all benefits to which the holder of such a Partnership Interest may be entitled, as provided in this Agreement, together with all obligations of such Person to comply with the terms and provisions of this Agreement. A Limited Partner Interest may be (but is not required to be) expressed as a number of OP Units.

"<u>Liquidating Event</u>" has the meaning set forth in <u>Section 13.1</u>.

"<u>Liquidator</u>" has the meaning set forth in <u>Section 13.2</u>.

"<u>LTIP Unit</u>" means an OP Unit that is designated as an "LTIP Unit," which represents a profits interest in future appreciation and certain distributions of Available Cash, and which has the rights, preferences and other privileges designated in <u>Section 4.6</u> hereof and elsewhere in this Agreement and in the Plan in respect of LTIP Unitholders. The allocation of LTIP Units among the Partners shall be set forth on <u>Exhibit A</u>, as may be amended from time to time by the General Partner.

"<u>LTIP Unit Agreement</u>" means each or any, as the context implies, agreement entered into by an LTIP Unitholder, the Partnership and STAG REIT upon acceptance by the LTIP Unitholder of an award of LTIP Units under the Plan (as such agreement may be amended, modified or supplemented from time to time).

"<u>LTIP Unitholder</u>" means a Person that holds LTIP Units.

"<u>Management Company</u>" means STAG Industrial Management, LLC, a Delaware limited liability company and a wholly owned Subsidiary of the Partnership, and any successor thereto, <u>provided</u> that such successor continues to manage or advise the General Partner.

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"<u>Net Income</u>" means, for any taxable period, the excess, if any, of the Partnership's items of income and gain for such taxable period over the Partnership's items of loss and deduction for such taxable period. The items included in the calculation of Net Income shall be determined in accordance with federal income tax accounting principles, subject to the specific adjustments provided for in <u>Section 1(b)</u> of <u>Exhibit B</u>.

"<u>Net Loss</u>" means, for any taxable period, the excess, if any, of the Partnership's items of loss and deduction for such taxable period over the Partnership's items of income and gain for such taxable period. The items included in the calculation of Net Loss shall be determined in accordance with federal income tax accounting principles, subject to the specific adjustments provided for in <u>Section 1(b)</u> of <u>Exhibit B</u>.

"<u>New Securities</u>" has the meaning set forth in <u>Section 4.2(b)</u> hereof.

"<u>Nonrecourse Deductions</u>" has the meaning set forth in Regulations Section 1.704-2(b)(l), and the amount of Nonrecourse Deductions for a Partnership taxable year shall be determined in accordance with the rules of Regulations Section 1.704-2(c).

"<u>Nonrecourse Liability</u>" has the meaning set forth in Regulations Section 1.752-1(a)(2).

"<u>Notice of Redemption</u>" means the Notice of Redemption substantially in the form of <u>Exhibit D</u> to this Agreement.

"<u>OP Unit</u>" means a fractional, undivided share of the Partnership Interests of all Partners issued pursuant to <u>Sections 4.1</u>, <u>4.2</u> and <u>4.3</u>, and includes Common Units, LTIP Units, and any other class or series of Partnership Units that may be established after the date hereof. The number of OP Units outstanding and the Percentage Interest in the Partnership represented by such OP Units are set forth in <u>Exhibit A</u> attached hereto, as such Exhibit may be amended from time to time. Only Common Units (including LTIP Units, where applicable) shall have a Percentage Interest. The ownership of some or all of the OP Units shall be evidenced by such form of certificate for units as the General Partner adopts from time to time unless the General Partner determines that the OP Units shall be uncertificated securities.

"<u>Original Agreement</u>" has the meaning set forth in the recitals hereto.

"<u>Partner</u>" means the General Partner or a Limited Partner, and "<u>Partners</u>" means the General Partner and the Limited Partners collectively.

"<u>Partner Minimum Gain</u>" means an amount, with respect to each Partner Nonrecourse Debt, equal to the Partnership Minimum Gain that would result if such Partner Nonrecourse Debt were treated as a Nonrecourse Liability, determined in accordance with Regulations Section 1.704-2(i)(3).

"<u>Partner Nonrecourse Debt</u>" has the meaning set forth in Regulations Section 1.704-2(b)(4).

"<u>Partner Nonrecourse Deductions</u>" has the meaning set forth in Regulations Section 1.704-2(i)(2), and the amount of Partner Nonrecourse Deductions with respect to a Partner Nonrecourse Debt for a Partnership taxable year shall be determined in accordance with the rules of Regulations Section 1.704-2(i)(2).

"<u>Partnership</u>" means STAG Industrial Operating Partnership, L.P., a limited partnership heretofore formed and continued under the Act and pursuant to this Agreement, and any successor thereto.

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"<u>Partnership Interest</u>" means an ownership interest in the Partnership held by either a Limited Partner or the General Partner and includes any and all benefits to which the holder of such a Partnership Interest may be entitled as provided in this Agreement, together with all obligations of such Person to comply with the terms and provisions of this Agreement. There may be one or more classes or series of Partnership Interests. A Partnership Interest may be (but is not required to be) expressed as a number of OP Units.

"<u>Partnership Minimum Gain</u>" has the meaning set forth in Regulations Section 1.704-2(b)(2), and the amount of Partnership Minimum Gain, as well as any net increase or decrease in a Partnership Minimum Gain, for a Partnership taxable year shall be determined in accordance with the rules of Regulations Section 1.704-2(d).

"<u>Partnership Record Date</u>" means the record date established by the General Partner for the distribution of Available Cash pursuant to <u>Section 5.1</u> hereof, which record date shall be the same as the record date established by STAG REIT for a distribution to its stockholders of some or all of its portion of such distribution.

"<u>Partnership Year</u>" means the fiscal year of the Partnership, which shall be the calendar year.

"<u>Percentage Interest</u>" means, as to a Partner, its interest in the Partnership as determined by dividing the Common Units owned by such Partner by the total number of Common Units then outstanding and as specified in <u>Exhibit A</u> attached hereto, as such Exhibit may be amended from time to time, treating LTIP Units, in accordance with <u>Section 4.6(a)</u>, as Common Units for this purpose. No Preferred Units shall have a Percentage Interest.

"<u>Person</u>" means an individual or a real estate investment trust, corporation, partnership, limited liability company, trust, unincorporated organization, association or other entity.

"<u>Plan</u>" means the Amended and Restated STAG Industrial, Inc. 2011 Equity Incentive Plan, effective April 30, 2018, as such plan may be amended from time to time, or any other equity incentive or compensation plan hereafter adopted by the Partnership or STAG REIT.

"<u>Plan Asset Regulation</u>" has the meaning set forth in <u>Section 7.9(e)</u> hereof.

"<u>Preferred Units</u>" means any class or series of OP Units designated as preferred units by the General Partner from time to time in accordance with Section 4.2 hereof.

"<u>Recapture Income</u>" means any gain recognized by the Partnership upon the disposition of any property or asset of the Partnership, which gain is characterized as ordinary income because it represents the recapture of deductions previously taken with respect to such property or asset.

"<u>Redeeming Partner</u>" has the meaning set forth in <u>Section 8.6(a)</u> hereof.

"<u>Redemption Right</u>" has the meaning set forth in <u>Section 8.6(a)</u> hereof.

"<u>Regulations</u>" means the Income Tax Regulations promulgated under the Code, as such regulations may be amended from time to time (including corresponding provisions of succeeding regulations).

"<u>REIT</u>" means a real estate investment trust under Section 856 of the Code.

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"<u>REIT Share</u>" means a share of common stock, par value $0.01 per share, of STAG REIT.

"<u>REIT Share Offering</u>" means a primary offering by STAG REIT of its REIT Shares.

"<u>REIT Shares Amount</u>" means a number of REIT Shares equal to the product of the number of Common Units offered for redemption by a Redeeming Partner, multiplied by the Conversion Factor in effect as of the Specified Redemption Date; <u>provided</u>, that, in the event that STAG REIT or the General Partner issues to all holders of REIT Shares and not to holders of Common Units as of a certain record date Distributed Rights, with the record date for such Distributed Rights issuance falling within the period starting on the date of the Notice of Redemption and ending on the day immediately preceding the Specified Redemption Date, which Distributed Rights have not expired or are still exercisable as of the relevant Specified Redemption Date, then the REIT Shares Amount shall also include such Distributed Rights that a holder of that number of REIT Shares would be entitled to receive, expressed, where relevant hereunder, in a number of REIT Shares determined by the General Partner.

"<u>Residual Gain</u>" or "<u>Residual Loss</u>" means any item of gain or loss, as the case may be, of the Partnership recognized for federal income tax purposes resulting from a sale, exchange or other disposition of Contributed Property or Adjusted Property, to the extent such item of gain or loss is not allocated pursuant to <u>Section 2(b)(i)(A)</u> or <u>2(b)(ii)(A)</u> of <u>Exhibit C</u> to eliminate Book-Tax Disparities.

"<u>Securities Act</u>" means the Securities Act of 1933, as amended, and any successor statute thereto, and the rules and regulations of the Securities and Exchange Commission promulgated thereunder.

"<u>Specified Redemption Date</u>" means the tenth (10th) Business Day after receipt by the Partnership of a Notice of Redemption; <u>provided</u>, that if STAG REIT combines its outstanding REIT Shares, no Specified Redemption Date shall occur after the record date of such combination of REIT Shares and prior to the effective date of such combination.

"<u>STAG REIT</u>" means STAG Industrial, Inc., a Maryland corporation and the sole member of the General Partner, and any successor thereto.

"<u>Subsidiary</u>" means, with respect to any Person, any real estate investment trust, corporation, partnership, limited liability company or other entity of which a majority of (i) the voting power of the voting equity securities; or (ii) the outstanding equity interests, is owned, directly or indirectly, by such Person.

"<u>Substituted Limited Partner</u>" means a Person who is admitted as a Limited Partner to the Partnership pursuant to <u>Section 11.4</u>.

"<u>Tenan</u>t" means any tenant from which STAG REIT derives rent either directly or indirectly through partnerships or limited liability companies, including through the General Partner and the Partnership.

"<u>Terminating Capital Transaction</u>" means any sale or other disposition of all or substantially all of the assets of the Partnership or a related series of transactions that, taken together, result in the sale or other disposition of all or substantially all of the assets of the Partnership. "<u>Trading Days</u>" means days on which the primary trading market for REIT Shares, if any, is open for trading. "<u>Transaction</u>" has the meaning set forth in <u>Section 8.7(g)</u>.

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"<u>Unrealized Gain</u>" attributable to any item of Partnership property means, as of any date of determination, the excess, if any, of (i) the fair market value of such property (as determined under <u>Exhibit B</u> hereof) as of such date; over (ii) the Carrying Value of such property (prior to any adjustment to be made pursuant to <u>Exhibit B</u> hereof) as of such date.

"<u>Unrealized Loss</u>" attributable to any item of Partnership property means, as of any date of determination, the excess, if any, of (i) the Carrying Value of such property (prior to any adjustment to be made pursuant to <u>Exhibit B</u> hereof) as of such date; over (ii) the fair market value of such property (as determined under <u>Exhibit B</u> hereof) as of such date.

"<u>Unvested LTIP Units</u>" has the meaning set forth in <u>Section 4.6(b)(i)</u>.

"<u>Valuation Date</u>" means the date of receipt by the General Partner of a Notice of Redemption or, if such date is not a Business Day, the first Business Day thereafter.

"<u>Value</u>" means, on any Valuation Date with respect to a REIT Share, the average of the Daily Market Price for the ten (10) consecutive Trading Days immediately preceding the Valuation Date.

"<u>Vested LTIP Unit</u>s" has the meaning set forth in <u>Section 4.6(b)(i)</u>.

**ARTICLE 2**

**ORGANIZATIONAL MATTERS**

Section 2.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Continuation</u>.

The Partners hereby continue the Partnership as a limited partnership under and pursuant to the Act. Except as expressly provided herein to the contrary, the rights and obligations of the Partners and the administration and termination of the Partnership shall be governed by the Act. The Partnership Interest of each Partner shall be personal property for all purposes.

Section 2.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Name</u>.

The name of the Partnership heretofore formed and continued hereby shall be "**STAG Industrial Operating Partnership, L.P.**". The Partnership's business may be conducted under any other name or names deemed advisable by the General Partner, including the name of the General Partner or any Affiliate thereof. The words "Limited Partnership," "LP", "L.P.," "Ltd." or similar words or letters shall be included in the Partnership's name where necessary for the purposes of complying with the laws of any jurisdiction that so requires. The General Partner in its sole and absolute discretion may change the name of the Partnership at any time and from time to time and shall notify the Limited Partners of such change in the next regular communication to the Limited Partners.

Section 2.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Registered Office and Agent; Principal Office</u>.

The address of the registered office of the Partnership in the State of Delaware and the name and address of the registered agent for service of process on the Partnership in the State of Delaware is The Corporation Trust Company, Corporation Trust Center, 1209 Orange Street, Wilmington, Delaware 19801. The principal office of the Partnership shall be c/o STAG Industrial, Inc., 99 Chauncy Street, 10th Floor, Boston, MA 02111, or such other place as the General Partner may from time to time designate by notice to the Limited Partners. The Partnership may maintain offices at such other place or places within or outside the State of Delaware as the General Partner deems advisable.

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Section 2.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Power of Attorney</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Each Limited Partner and each Assignee hereby irrevocably constitutes and appoints the General Partner, any Liquidator, and authorized officers and attorneys-in-fact of each, and each of those acting singly, in each case with full power of substitution, as its true and lawful agent and attorney-in-fact, with full power and authority in its name, place and stead to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)execute, swear to, acknowledge, deliver, file and record in the appropriate public offices (A) all certificates, documents and other instruments (including, without limitation, this Agreement and the Certificate and all amendments, supplements or restatements thereof) that the General Partner or the Liquidator deems appropriate or necessary to form, qualify or continue the existence or qualification of the Partnership as a limited partnership (or a partnership in which the Limited Partners have limited liability to the extent provided by applicable law) in the State of Delaware and in all other jurisdictions in which the Partnership may or plans to conduct business or own property; (B) all instruments that the General Partner deems appropriate or necessary to reflect any amendment, change, modification or restatement of this Agreement in accordance with the terms of this Agreement; (C) all conveyances and other instruments or documents that the General Partner or the Liquidator deems appropriate or necessary to reflect the dissolution and liquidation of the Partnership pursuant to the terms of this Agreement, including, without limitation, a certificate of cancellation; (D) all conveyances and other instruments or documents that the General Partner or the Liquidator deems appropriate or necessary to reflect the distribution or exchange of assets of the Partnership pursuant to the terms of this Agreement; (E) all instruments relating to the admission, withdrawal, removal or substitution of any Partner pursuant to, or other events described in, <u>Article 11</u>, <u>12</u> or <u>13</u> hereof or the Capital Contribution of any Partner; and (F) all certificates, documents and other instruments relating to the determination of the rights, preferences and privileges of Partnership Interests; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)execute, swear to, seal, acknowledge and file all ballots, consents, approvals, waivers, certificates and other instruments appropriate or necessary, in the sole and absolute discretion of the General Partner or any Liquidator, to make, evidence, give, confirm or ratify any vote, consent, approval, agreement or other action which is made or given by the Partners hereunder or is consistent with the terms of this Agreement or appropriate or necessary, in the sole discretion of the General Partner or any Liquidator, to effectuate the terms or intent of this Agreement.

Nothing contained herein shall be construed as authorizing the General Partner or any Liquidator to amend this Agreement except in accordance with <u>Article 14</u> hereof or as may be otherwise expressly provided for in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The foregoing power of attorney is hereby declared to be irrevocable and a power coupled with an interest, in recognition of the fact that each of the Partners will be relying upon the power of the General Partner and any Liquidator to act as contemplated by this Agreement in any filing or other action by it on behalf of the Partnership, and it shall survive and not be affected by the subsequent Incapacity of any Limited Partner or Assignee and the transfer of all or any portion of such Limited Partner's or Assignee's OP Units and shall extend to such Limited Partner's or Assignee's heirs, successors, assigns and personal representatives. Each such Limited Partner or Assignee hereby agrees to be bound by any representation made by the General Partner or any Liquidator, acting in good faith pursuant to such power of attorney, and each such Limited Partner or Assignee hereby waives any and all defenses which may be available to contest, negate or disaffirm the action of the General Partner or any Liquidator, taken in good faith under such power of attorney. Each Limited Partner or Assignee shall execute and deliver to the General Partner or the Liquidator, within fifteen (15) days after receipt of the General Partner's or Liquidator's request therefor, such further designation, powers of attorney

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and other instruments as the General Partner or the Liquidator, as the case may be, deems necessary to effectuate this Agreement and the purposes of the Partnership. Notwithstanding anything to the contrary set forth in this <u>Section 2.4(b)</u>, no Limited Partner shall incur any personal liability for any action of the General Partner or the Liquidator taken under such power of attorney.

Section 2.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Term</u>.

The term of the Partnership commenced on the date that the Certificate was filed with the Secretary of State of the State of Delaware and shall continue in perpetuity, unless the Partnership is dissolved sooner pursuant to the provisions of <u>Article 13</u> or as otherwise provided by law.

Section 2.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Partnership Interests Are Securities</u>.

All Partnership Interests shall be securities within the meaning of, and governed by, (i) Article 8 of the Delaware Uniform Commercial Code and (ii) Article 8 of the Uniform Commercial Code of any other applicable jurisdiction.

**ARTICLE 3**

**PURPOSE**

Section 3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Purpose and Business</u>.

The purpose and nature of the business to be conducted by the Partnership is (i) to conduct any business that may be lawfully conducted by a limited partnership formed pursuant to the Act; <u>provided</u>, <u>however</u>, that such business shall be limited to and conducted in such a manner as to permit STAG REIT at all times to qualify as a REIT, unless STAG REIT ceases to qualify as a REIT for reasons other than the conduct of the business of the Partnership or voluntarily revokes its election to be a REIT; (ii) to enter into any partnership, joint venture or other similar arrangement to engage in any of the foregoing or to own interests in any entity engaged in any of the foregoing; and (iii) to do anything necessary, convenient or incidental to the foregoing. In connection with the foregoing, and without limiting the right of the board of STAG REIT, in its sole discretion, to cause STAG REIT to cease to qualify as a REIT, the Partners acknowledge that STAG REIT's status as a REIT shall inure to the benefit of all of the Partners and not solely to the General Partner, STAG REIT or their Affiliates.

Section 3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Powers</u>.

The Partnership is empowered to do any and all acts and things necessary, appropriate, proper, advisable, incidental to or convenient for the furtherance and accomplishment of the purposes and business described herein and for the protection and benefit of the Partnership, and shall have, without limitation, any and all of the powers that may be exercised on behalf of the Partnership by the General Partner pursuant to this Agreement; <u>provided</u>, <u>however,</u> that the Partnership shall not take, or refrain from taking, any action which, in the judgment of the General Partner, in its sole and absolute discretion,(i) could adversely affect the ability of STAG REIT to qualify and to continue to qualify as a REIT; (ii) could subject STAG REIT to any additional taxes under Code Section 857 or Code Section 4981 or any other related or successor provision of the Code; or (iii) could violate any law or regulation of any governmental body or agency having jurisdiction over STAG REIT, its securities, the General Partner or the Partnership, unless such action (or inaction) under clause (i), clause (ii) or clause (iii) above shall have been specifically consented to by the General Partner in writing.

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Section 3.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Representations and Warranties by the Parties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Each Partner that is an individual (including, without limitation, each Additional Limited Partner or Substituted Limited Partner as a condition to becoming an Additional Limited Partner or a Substituted Limited Partner) represents and warrants to each other Partner that (i) such Partner has the legal capacity to enter into this Agreement and perform such Partner's obligations hereunder; (ii) the consummation of the transactions contemplated by this Agreement to be performed by such Partner will not result in a breach or violation of, or a default under, any agreement by which such Partner or any of such Partner's property is or are bound, or any statute, regulation, order or other law to which such Partner is subject; and (iii) this Agreement is binding upon, and enforceable against, such Partner in accordance with its terms, as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or similar laws affecting creditors' rights generally, as from time to time in effect, or the application of equitable principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Each Partner that is not an individual (including, without limitation, each Additional Limited Partner or Substituted Limited Partner as a condition to becoming an Additional Limited Partner or a Substituted Limited Partner) represents and warrants to each other Partner that (i) its execution and delivery of this Agreement and all transactions contemplated by this Agreement to be performed by it have been duly authorized by all necessary action, including without limitation, that of its general partner(s), committee(s), trustee(s), beneficiaries, director(s), member(s) and/or stockholder(s), as the case may be, as required; (ii) the consummation of such transactions shall not result in a breach or violation of, or a default under, its certificate of limited partnership, partnership agreement, trust agreement, limited liability company operating agreement, charter or bylaws, as the case may be, any agreement by which such Partner or any of such Partner's properties or any of its partners, beneficiaries, trustees, directors, members or stockholders, as the case may be, is or are bound, or any statute, regulation, order or other law to which such Partner or any of its partners, trustees, beneficiaries, directors, members or stockholders, as the case may be, is or are subject; and (iii) this Agreement is binding upon, and enforceable against, such Partner in accordance with its terms, as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or similar laws affecting creditors' rights generally, as from time to time in effect, or the application of equitable principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Each Partner further represents, warrants, covenants and agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Except as provided in <u>Exhibit H</u> hereto, at any time such Partner actually owns or Constructively Owns a 25% or greater capital interest or profits interest in the Partnership, it does not and will not, without the prior written consent of the General Partner, actually own or Constructively Own (A) with respect to any Tenant that is a corporation, any stock of such Tenant; and (B) with respect to any Tenant that is not a corporation, any interest in either the assets or net profits of such Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Upon request of the General Partner, it will promptly disclose to the General Partner the amount of REIT Shares or other capital shares of STAG REIT that it actually owns or Constructively Owns.

Each Partner understands that if, for any reason; (A) the representations, warranties or agreements set forth above are violated, or (B) the Partner's or Partnership's actual or Constructive Ownership of REIT Shares or other capital shares of STAG REIT violates the limitations set forth in the Charter, then (x) some or all of the Redemption Rights of the Partners may become non-exercisable; and (y) some or all of the REIT Shares owned by the Partners may be automatically transferred to a trust for the benefit of a charitable beneficiary, as provided in the Charter.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Without the consent of the General Partner, which may be given or withheld in its sole discretion, no Partner shall take any action that would cause the Partnership at any time to have more than one hundred (100) partners (including as partners those Persons indirectly owning an interest in the Partnership through a partnership, limited liability company, S corporation or grantor trust (such entity, a "<u>flow through entity</u>"), but only if substantially all of the value of such Person's interest in the flow through entity is attributable to the flow through entity's interest (direct or indirect) in the Partnership).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The representations and warranties contained in this <u>Section 3.3</u> shall survive the execution and delivery of this Agreement by each Partner (and, in the case of an Additional Limited Partner or a Substituted Limited Partner, the admission of such Additional Limited Partner or Substituted Limited Partner as a Limited Partner in the Partnership) and the dissolution and winding up of the Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Each Partner (including, without limitation, each Additional Limited Partner or Substituted Limited Partner as a condition to becoming an Additional Limited Partner or a Substituted Limited Partner) hereby acknowledges that no representations as to potential profit, cash flows, funds from operations or yield, if any, in respect of the Partnership, the General Partner or STAG REIT have been made by any Partner or any employee or representative or Affiliate of any Partner, and that projections and any other information, including, without limitation, financial and descriptive information and documentation, which may have been in any manner submitted to such Partner shall not constitute any representation or warranty of any kind or nature, express or implied.

Section 3.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Not Publicly Traded</u>.

The General Partner, on behalf of the Partnership, shall use its best efforts not to take any action which would result in the Partnership being a publicly traded partnership within the meaning of either Section 469(k)(2) or 7704(b) of the Code. Subject to this <u>Section 3.4</u>, it is expressly acknowledged and agreed by the Partners that the General Partner may, in its sole and absolute discretion, waive or otherwise modify the application with respect to any Partner(s) or Assignee(s) of any provision herein restricting, prohibiting or otherwise relating to (i) the transfer of a Limited Partner Interest or the OP Units evidencing the same; (ii) the admission of any Limited Partners; and (iii) the Redemption Rights of such Partners, and that such waivers or modifications may be made by the General Partner at any time or from time to time, including, without limitation, concurrently with the issuance of any OP Units pursuant to the terms of this Agreement.

**ARTICLE 4**

**CAPITAL CONTRIBUTIONS**

Section 4.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Capital Contributions of the Partners</u>.

At the time of their respective execution of this Agreement, the Partners shall make or shall have made Capital Contributions as set forth in <u>Exhibit A</u> to this Agreement. Following their respective contributions, the Partners shall own OP Units in the amounts set forth in <u>Exhibit A</u> and shall have a Percentage Interest (if applicable) in the Partnership as set forth in <u>Exhibit A</u>, which Percentage Interest shall be adjusted from time to time by the General Partner to the extent necessary to reflect accurately exchanges, redemptions, additional Capital Contributions, the issuance of additional OP Units, or similar events having an effect on any Partner's Percentage Interest, as set forth in the records of the Partnership. Except as provided in <u>Sections 4.2</u>, <u>4.3</u>, <u>4.4</u> and <u>10.5</u>, the Partners shall have no obligation to make any additional Capital Contributions or loans to the Partnership.

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Section 4.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Issuances of Additional Partnership Interests</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The General Partner is hereby authorized, without the need for any vote or approval of any Partner or any other Person who may hold OP Units or Partnership Interests, to cause the Partnership from time to time to issue to any existing Partner (including the General Partner) or to any other Person (including Affiliates of the General Partner), and to admit such Person as a limited partner in the Partnership, OP Units (including, without limitation, Common Units and preferred OP Units) or other Partnership Interests, in each case in exchange for the contribution by such Person of property or other assets, in one or more classes, or one or more series of any of such classes, or otherwise with such designations, preferences, redemption and conversion rights and relative, participating, optional or other special rights, powers and duties, including rights, powers and duties senior to other classes of Limited Partner Interests, all as shall be determined by the General Partner in its sole and absolute discretion subject to Delaware law, including, without limitation, (i) the allocations of items of Partnership income, gain, loss, deduction and credit to each such class or series of Partnership Interests; (ii) the right of each such class or series of Partnership Interests to share in Partnership distributions; and (iii) the rights of each such class or series of Partnership Interests upon dissolution and liquidation of the Partnership; <u>provided</u>, that no such additional OP Units or other Partnership Interests shall be issued to the General Partner or STAG REIT unless either (A)(1) the additional Partnership Interests are issued in connection with an issuance of REIT Shares or other securities by STAG REIT, which securities have designations, preferences and other rights such that the economic interests attributable to such securities are comparable to the designations, preferences and other rights, except voting rights, of the additional Partnership Interests issued to the General Partner or STAG REIT in accordance with this <u>Section 4.2(a)</u>, and (2) the General Partner or STAG REIT shall make a Capital Contribution to the Partnership in an amount equal to the proceeds, if any, raised in connection with such issuance; or (B) the additional Partnership Interests are issued to all Partners holding Partnership Interests in the same class in proportion to their respective Percentage Interests in such class. In addition, the General Partner or STAG REIT may acquire OP Units from other Partners pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)In accordance with, and subject to the terms of <u>Section 4.3</u> hereof, STAG REIT shall not issue any REIT Shares (other than REIT Shares issued pursuant to <u>Section 8.6</u>) or other securities, or rights, options, warrants or convertible or exchangeable securities containing the right to subscribe for or purchase REIT Shares or other securities of STAG REIT (or any Debt issued by STAG REIT that provides any of the foregoing rights) (collectively, "<u>New Securities</u>") other than to all holders of REIT Shares unless (i) the General Partner shall cause the Partnership to issue to STAG REIT Partnership Interests or rights, options, warrants or convertible or exchangeable securities of the Partnership having designations, preferences and other rights, all such that the economic interests are comparable to those of the REIT Shares or other securities or New Securities; and (ii) STAG REIT contributes to the Partnership the proceeds, if any, from the issuance of such REIT Shares, other securities or New Securities and, if applicable, from the exercise of rights contained in such New Securities. Without limiting the foregoing, STAG REIT is expressly authorized to issue REIT Shares, other securities or New Securities for less than fair market value, and the General Partner is expressly authorized to cause the Partnership to issue to STAG REIT corresponding Partnership Interests, so long as (x) the General Partner concludes in good faith that such issuance is in the interests of STAG REIT and the Partnership (for example, and not by way of limitation, the issuance of REIT Shares and corresponding OP Units in connection with an issuance of REIT Shares under the Plan or another long-term incentive plan of STAG REIT or pursuant to an employee share purchase plan providing for employee purchases of REIT Shares at a discount from fair market value or employee share options that have an exercise price that is less than the fair market value of the REIT Shares, either at the time of issuance or at the time of exercise, or in order to comply with the REIT share ownership requirements set forth in Section 856(a)(5) of the Code); and (y) he General Partner contributes all proceeds from such issuance and exercise to the Partnership.

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Section 4.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Contribution of Proceeds of Issuance of Securities by STAG REIT</u>.

On the Closing Date, STAG REIT shall contribute to the Partnership the proceeds of the Initial Public Offering and the Initial REIT Capitalization received from STAG REIT in exchange for OP Units; and, in connection with any subsequent closings of the Initial Public Offering, any other REIT Share Offering and any other issuance of REIT Shares, other securities or New Securities pursuant to <u>Section 4.2</u>, STAG REIT shall contribute to the Partnership any proceeds (or a portion thereof) raised in connection with such issuance and received by STAG REIT in exchange for Partnership Interests or rights, options, warrants or convertible or exchangeable securities of the Partnership having designations, preferences and other rights, all such that the economic interests are comparable to those of the REIT Shares or other securities or New Securities contributed to the Partnership; <u>provided</u>, that, in each case, if the proceeds actually received by STAG REIT are less than the gross proceeds of such issuance as a result of any underwriter's discount or other expenses paid or incurred in connection with such issuance, then STAG REIT shall be deemed to have made a Capital Contribution to the Partnership in the amount equal to the sum of the net proceeds of such issuance plus the amount of such underwriter's discount and other expenses paid by STAG REIT and/or the General Partner (which discount and expense shall be treated as an expense for the benefit of the Partnership in accordance with <u>Section 7.4</u>). In the case of employee purchases of New Securities at a discount from fair market value, the amount of such discount representing compensation to the employee, as determined by the General Partner, shall be treated as an expense of the issuance of such New Securities.

Section 4.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Additional Funds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The General Partner may, at any time and from time to time, determine that the Partnership requires additional funds ("<u>Additional Funds</u>") for the acquisition of additional assets, for the redemption of OP Units or for such other purposes as the General Partner may determine in its sole and absolute discretion. Additional Funds may be obtained by the Partnership, at the election of the General Partner, in any manner provided in, and in accordance with, the terms of this <u>Section 4.4</u> without the approval of any Limited Partners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The General Partner, on behalf of the Partnership, may obtain any Additional Funds by accepting Capital Contributions from any Partners or other Persons. In connection with any such Capital Contribution, the General Partner is hereby authorized to cause the Partnership from time to time to issue additional OP Units (as set forth in <u>Section 4.2</u> above) in consideration therefor, and the Percentage Interests (if applicable) of the Partners shall be adjusted to reflect the issuance of such additional OP Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The General Partner, on behalf of the Partnership, may obtain any Additional Funds by causing the Partnership to incur Debt to any Person (other than the General Partner (but, for this purpose, disregarding any Debt that may be deemed incurred to the General Partner by virtue of clause (iii) of the definition of Debt)) upon such terms as the General Partner determines appropriate, including making such Debt convertible, redeemable or exchangeable for OP Units; <u>provided</u>, <u>however</u>, that the Partnership shall not incur any such Debt if (i) a breach, violation or default of such indebtedness would be deemed to occur by virtue of the transfer of any Partnership Interest; or (ii) such Debt is recourse to any Partner (unless the Partner otherwise agrees).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The General Partner, on behalf of the Partnership, may obtain any Additional Funds by causing the Partnership to incur Debt to STAG REIT if (i) such Debt is, to the extent permitted by law, on substantially the same terms and conditions (including interest rate, repayment schedule, and conversion, redemption, repurchase and exchange rights) as Funding Debt incurred by STAG REIT, the net proceeds of which are loaned to the Partnership

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to provide such Additional Funds; or (ii) such Debt is on terms and conditions no less favorable to the Partnership than would be available to the Partnership from any third party; <u>provided</u>, <u>however</u>, that the Partnership shall not incur any such Debt if (A) a breach, violation or default of such Debt would be deemed to occur by virtue of the transfer of any Partnership Interest; or (B) such Debt is recourse to any Partner (unless the Partner otherwise agrees).

Section 4.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Preemptive Rights</u>.

No Person shall have any preemptive, preferential or other similar right with respect to (i) additional Capital Contributions or loans to the Partnership; or (ii) the issuance or sale of any OP Units or other Partnership Interests.

Section 4.6&nbsp;&nbsp;&nbsp;&nbsp;<u>LTIP Units</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The General Partner, on behalf of the Partnership, may from time to time issue LTIP Units to Persons who provide services to the Partnership, the General Partner or STAG REIT, including any Person who performs services as an employee of the Management Company, or any Affiliate of either of them, for such consideration as the General Partner may determine to be appropriate for services rendered by such Persons to the Partnership, the General Partner or STAG REIT in its capacity as a Partner or in anticipation of becoming a Partner, and admit such Persons as Limited Partners. Subject to the following provisions of this <u>Section 4.6</u> and the special provisions of <u>Sections 6.1(c)</u>, <u>8.7</u> and <u>8.8</u>, LTIP Units shall be treated as Common Units, with all of the rights, privileges and obligations attendant thereto. For purposes of computing the Partners' Percentage Interests, holders of LTIP Units shall be treated as Limited Partners and LTIP Units shall be treated as Common Units. The General Partner may, on behalf of the Partnership, grant LTIP Units to any Person at any time, in its sole and absolute discretion. In particular, except as otherwise specifically provided in this Agreement, the Partnership shall maintain at all times a one-to-one correspondence between LTIP Units and Common Units for conversion, distribution and other purposes, including without limitation complying with the following procedures:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)If an Adjustment Event occurs, the General Partner shall make a corresponding adjustment to the LTIP Units to maintain a one-for-one conversion and economic equivalence ratio between Common Units and LTIP Units. If the Partnership takes an action affecting the Common Units other than actions specifically defined herein as "Adjustment Events" and in the opinion of the General Partner such action would require an adjustment to the LTIP Units to maintain the one-to-one correspondence described above, the General Partner shall have the right to make such adjustment to the LTIP Units, to the extent permitted by law and by the Plan, in such manner and at such time as the General Partner, in its sole discretion, may determine to be appropriate under the circumstances. If an adjustment is made to the LTIP Units as herein provided, the Partnership shall promptly file in the books and records of the Partnership an officer's certificate setting forth such adjustment and a brief statement of the facts requiring such adjustment, which certificate shall be conclusive evidence of the correctness of such adjustment absent manifest error. Promptly after the filing of such certificate, the Partnership shall mail a notice to each LTIP Unitholder setting forth the adjustment to his or her LTIP Units and the effective date of such adjustment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)The LTIP Unitholders shall, in respect of each Distribution Payment Date, when, as and if authorized and declared by the General Partner out of assets legally available for that purpose, be entitled to receive distributions in an amount per LTIP Unit equal to the distributions per Common Unit paid to holders of record on the same record date established by the General Partner with respect to such Distribution Payment Date. During any distribution period, so long as any LTIP Units are outstanding, no distributions (whether in cash or in kind) shall be authorized, declared or paid on Common Units, unless equal distributions

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have been or contemporaneously are authorized, declared and paid on the LTIP Units for such distribution period. Subject to this <u>Section 4.6</u> and the special provisions of <u>Section 6.1(c)</u>, the LTIP Units shall rank *pari passu* with the Common Units as to the payment of regular and special periodic or other distributions and distribution of assets upon liquidation, dissolution or winding up. As to the payment of distributions and as to distribution of assets upon liquidation, dissolution or winding up, any class or series of OP Units or Partnership Interests which by its terms specifies that it shall rank junior to, on a parity with, or senior to the Common Units shall also rank junior to, or pari passu with, or senior to, as the case may be, the entitlement of the LTIP Units to such distribution. Subject to the terms of any LTIP Unit Agreement, an LTIP Unitholder shall be entitled to transfer his or her LTIP Units to the same extent and subject to the same restrictions as holders of Common Units are entitled to transfer their Common Units pursuant to <u>Article 11</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)LTIP Units shall be subject to the following special provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<u>LTIP Unit Agreements</u>. LTIP Units may, in the sole discretion of the Compensation Committee, be issued subject to vesting, forfeiture and additional restrictions on transfer pursuant to the terms of an LTIP Unit Agreement. The terms of any LTIP Unit Agreement may be modified by the Compensation Committee from time to time in its sole discretion, subject to any restrictions on amendment imposed by the relevant LTIP Unit Agreement or by the Plan, if applicable. LTIP Units that are no longer subject to forfeiture under the terms of the LTIP Unit Agreement are referred to herein as "<u>Vested LTIP Units</u>;" all other LTIP Units shall be treated as "<u>Unvested LTIP Units</u>."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)<u>Forfeiture</u>. Unless otherwise specified in the applicable LTIP Unit Agreement, upon the occurrence of any event specified in an LTIP Unit Agreement as resulting in either the right of the Partnership or the General Partner to repurchase LTIP Units at a specified purchase price or some other forfeiture of any LTIP Units, if the Partnership or the General Partner exercises such right to repurchase or some other forfeiture occurs in accordance with the applicable LTIP Unit Agreement, then the relevant LTIP Units shall immediately, and without any further action, be treated as cancelled and no longer outstanding for any purpose. Unless otherwise specified in the applicable LTIP Unit Agreement, no consideration or other payment shall be due with respect to any LTIP Units that have been forfeited, other than any distributions declared with respect to a Partnership Record Date prior to the effective date of the forfeiture. In connection with any repurchase or forfeiture of LTIP Units, the balance of the portion of the Capital Account of the LTIP Unitholder that is attributable to all of his or her LTIP Units shall be reduced by the amount, if any, by which it exceeds the target balance contemplated by <u>Section 6.1(c)</u>, calculated with respect to the LTIP Unitholder's remaining LTIP Units, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)<u>Allocations</u>. LTIP Units shall generally be treated as Common Units for purposes of <u>Article 6</u>, but shall receive certain special allocations of gain under <u>Section 6.1(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)<u>Redemption</u>. The Redemption Right provided to Limited Partners under <u>Section 8.6</u> shall not apply with respect to LTIP Units unless and until they are converted to Common Units as provided in clause (vi) below and <u>Section 8.7</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)<u>Legend</u>. Any certificate evidencing an LTIP Unit shall bear an appropriate legend indicating that additional terms, conditions and restrictions on transfer, including without limitation any LTIP Unit Agreement, apply to the LTIP Unit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)<u>Conversion to Common Units</u>. Vested LTIP Units are eligible to be converted into Common Units under <u>Section 8.7</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)<u>Voting</u>. LTIP Units shall have the voting rights provided in <u>Section 8.8</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)<u>Tax Classification</u>. The Partners intend that the LTIP Units shall be classified as "profits interests" within the meaning of IRS Revenue Procedure 93-27, 1993-2 C.B. 343, as clarified by IRS Revenue Procedure 2001-43, 2001-2 C.B. 191, and the provisions of this Agreement shall be interpreted in a manner consistent with this intent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Code Section 83 Safe Harbor Election</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)By executing this Agreement, each Partner authorizes and directs the Partnership to elect to have the "Safe Harbor" described in the proposed Revenue Procedure set forth in IRS Notice 2005-43 (the "<u>Notice</u>") apply to the LTIP Units and any other interest in the Partnership transferred to a service provider by the Partnership on or after the effective date of such Revenue Procedure in connection with services provided to the Partnership. For purposes of making such Safe Harbor election, the General Partner is hereby designated as the "partner who has responsibility for federal income tax reporting" by the Partnership and, accordingly, execution of such Safe Harbor election by the General Partner constitutes execution of a "Safe Harbor Election" in accordance with Section 3.03(1) of the Notice. The Partnership and each Partner hereby agree to comply with all requirements of the Safe Harbor described in the Notice, including, without limitation, the requirement that each Partner shall prepare and file all federal income tax returns reporting the income tax effects of each interest in the Partnership issued by the Partnership covered by the Safe Harbor in a manner consistent with the requirements of the Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Each Partner authorizes the General Partner to amend <u>Section 4.6(c)</u> to the extent necessary to achieve substantially the same tax treatment with respect to LTIP Units and any other interest in the Partnership transferred to a service provider by the Company in connection with services provided to the Partnership as set forth in Section 4 of the Notice (*e.g.*, to reflect changes from the rules set forth in the Notice in subsequent IRS guidance), provided that such amendment is not adverse to such Partner (as compared with the after-tax consequences that would result to such Partner if the provisions of the Notice applied to all interests in the Partnership transferred to a service provider by the Partnership in connection with services provided to the Partnership).

**ARTICLE 5**

**DISTRIBUTIONS**

Section 5.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Requirement and Characterization of Distributions</u>.

Subject to the distribution entitlements of any Preferred Units, the General Partner shall distribute at least quarterly all or such portion as the General Partner may in its sole discretion determine of Available Cash generated by the Partnership during such quarter or shorter period to the Partners that are Partners on the Partnership Record Date with respect to such quarter or shorter period in the following priority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)First, to the Partners in accordance with their Percentage Interests in arrears with respect to the immediately preceding calendar quarter in an amount equal to (i) the sum of (A) the General Partner's reasonable estimate of the Net Income allocable to the Partners in accordance with their Percentage Interests under <u>Section 6.1(a)</u> with respect to such immediately preceding calendar quarter and (B) the General Partner's determination of the Net Income so allocated in prior calendar quarters in the same calendar year, reduced by (ii) the sum of (A) all distributions previously made under this subsection or under subsection (b) with

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respect to all calendar quarters during the same calendar year and (B) any Net Loss allocable to the Partners in accordance with their Percentage Interests in such calendar quarter or any preceding calendar quarter of the same calendar year under <u>Section 6.1(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Second, to the Partners in accordance with their Percentage Interests; <u>provided</u>, that in no event may a Partner receive a distribution of Available Cash with respect to a Common Unit if such Partner is entitled to receive a distribution out of such Available Cash with respect to a REIT Share for which such Common Unit has been exchanged, and any such distribution shall be made to the General Partner.

The General Partner shall take such reasonable efforts, as determined by it in its sole and absolute discretion and consistent with STAG REIT's qualification as a REIT, to distribute Available Cash to the Limited Partners so as to preclude any such distribution or portion thereof from being treated as part of a sale of property to the Partnership by a Limited Partner under Section 707 of the Code or the Regulations thereunder; <u>provided</u>, that the General Partner and the Partnership shall not have liability to a Limited Partner under any circumstances as a result of any distribution to a Limited Partner being so treated.

Section 5.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Amounts Withheld</u>.

To the extent provided in <u>Section 10.5</u>, all amounts withheld pursuant to the Code or any provisions of any state or local tax law and <u>Section 10.5</u> hereof with respect to any allocation, payment or distribution to the Partners or Assignees shall be treated as amounts distributed to the Partners or Assignees pursuant to <u>Section 5.1</u> for all purposes under this Agreement.

Section 5.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Distributions upon Liquidation</u>.

Notwithstanding the other provisions of this <u>Article 5</u>, net proceeds from a Terminating Capital Transaction and any other cash received or reductions in reserves made after commencement of the liquidation of the Partnership shall be distributed to the Partners in accordance with <u>Section 13.2</u>.

Section 5.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Restricted Distributions</u>.

Notwithstanding any provision to the contrary contained in this Agreement, the Partnership, and the General Partner on behalf of the Partnership, shall not make a distribution to any Partner on account of its interest in the Partnership if such distribution would violate Section 17-607 of the Act or other applicable law.

**ARTICLE 6**

**ALLOCATIONS**

Section 6.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Allocations for Capital Account Purposes</u>.

For purposes of maintaining the Capital Accounts and in determining the rights of the Partners among themselves, the Partnership's items of income, gain, loss and deduction (computed in accordance with <u>Exhibit B</u> hereof) shall be allocated among the Partners in each taxable year (or portion thereof) as provided herein below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)After giving effect to the special allocations set forth in <u>Section 1</u> of <u>Exhibit C</u> attached hereto, Net Income shall be allocated to the Partners in the following order of priority:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)First, to the Partners that have been allocated Net Losses pursuant to the last sentence of <u>Section 6.1(b)</u>, in proportion to and to the extent of the excess, in the case of each such Partner, of (A) the Net Loss allocated to such Partner under the last sentence of <u>Section 6.1(b)</u>, over (B) all prior allocations of Net Income to such Partner under this <u>Section 6.1(a)(i);</u> and then, to the Partners that have been allocated Net Losses pursuant to <u>Section 6.1(b)(iv)</u>, in proportion to and to the extent of the excess, in the case of each such Partner, of (A) the Net Loss allocated to such Partner under <u>Section 6.1(b)(iv)</u>, over (B) all prior allocations of Net Income to such Partner under this <u>Section 6.1(a)(i)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Second, to the Partners that have been allocated Net Losses under <u>Section 6.1(b)(iii)</u>, in proportion to and to the extent of the excess, in the case of each such Partner, of (A) the Net Loss allocated to such Partner under <u>Section 6.1(b)(iii)</u>, over (B) all prior allocations of Net Income to such Partner under this <u>Section 6.2(a)(ii)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Third, to the holders of Preferred Units, if any, in proportion to and to the extent of the excess, in the case of each such Partner, of (A) the sum of (x) the accrued preferred return payable with respect to such Partner's Preferred Units (without regard to whether such return has actually been paid) plus (y) the amount of all Net Losses allocated to such Partner under <u>Section 6.1(b)(ii)</u>, over (B) all prior allocations of Net Income to such Partner under this <u>Section 6.1(a)(iii)</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Fourth, to the Partners in accordance with their respective Percentage Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)After giving effect to the special allocations set forth in <u>Section 1</u> of <u>Exhibit C</u> attached hereto, Net Losses shall be allocated to the Partners in the following order of priority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)First, pro rata based on Percentage Interests, (A) to holders of Common Units in proportion to their Percentage Interests associated with their Common Units until the portion of their Capital Accounts attributable to their Common Units is reduced to zero and (B) to holders of LTIP Units in proportion to their Percentage Interests associated with their LTIP Units until the portion of their Capital Accounts attributable to their LTIP Units is reduced to zero;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Second, to the holders of Preferred Units, if any, in proportion to and to the extent of the excess, in the case of each such Partner, of (A) the amount of all Net Income allocated to such Partner under <u>Section 6.1(a)(iii)</u> over (B) the sum of (x) the amount of all cash distributions to that Partner in respect of such Preferred Units, plus (y) the amount of all Net Losses previously allocated to such Partner under this <u>Section 6.1(b)(ii)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Third, to the holders of Preferred Units, if any, in proportion to and to the extent of their positive Capital Account balances with respect to their Preferred Units; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Fourth, to the Partners in accordance with their respective Percentage Interests.

In no event shall Net Losses be allocated to a Limited Partner to the extent such allocation would result in such partner having an Adjusted Capital Account Deficit (as determined on a per Unit basis, taking into account the portion of the Limited Partner's Adjusted Capital Account Deficit attributable to such Unit) at the end of any taxable year in excess of the Adjusted Capital Account Deficit (as determined on a per Unit basis, taking into account the portion of the Limited Partner's Adjusted Capital Account Deficit attributable to such Unit) of any other

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Limited Partner. All such Net Losses shall be allocated to the other Partners in accordance with the other provisions of this <u>Section 6.1(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Notwithstanding the provisions of <u>Sections 6.1(a)</u> and <u>(b)</u> above, any net capital gains (computed in accordance with Exhibit B) realized in connection with the actual or hypothetical sale of all or substantially all of the assets of the Partnership, including but not limited to net capital gain realized in connection with an adjustment to the Carrying Value of Partnership assets under Section 704(b) of the Code, shall first be allocated to the LTIP Unitholders until the aggregate Economic Capital Account Balances of such LTIP Unitholders, to the extent attributable to their ownership of LTIP Units, are equal to the product of (i) the Common Unit Economic Balance, multiplied by (ii) the number of such LTIP Unitholders' LTIP Units.

For this purpose, the "<u>Economic Capital Account Balances</u>" of the LTIP Unitholders will be equal to their Capital Account balances, computed for book purposes, plus the amount of their shares of any Partner Minimum Gain or Partnership Minimum Gain, in either case to the extent attributable to their ownership of LTIP Units. Similarly, the "<u>Common Unit Economic Balance</u>" shall mean (i) the Capital Account balance of STAG REIT, to the extent attributable to STAG REIT's ownership of Common Units, plus the amount of STAG REIT's share of any Partner Minimum Gain or Partnership Minimum Gain, in either case to the extent attributable to STAG REIT's ownership of Common Units and computed on a hypothetical basis after taking into account all allocations through the date on which any allocation is made under this <u>Section 6.1(c)</u>, divided by (ii) the number of STAG REIT's Common Units. Any allocations under this <u>Section 6.1(c)</u> shall be made among the LTIP Unitholders in proportion to the amounts required to be allocated to each under this <u>Section 6.1(c)</u>. The parties agree that the intent of this <u>Section 6.1(c)</u> is to make the Capital Account balances of the LTIP Unitholders with respect to each of their LTIP Units economically equivalent to the Capital Account balance of STAG REIT with respect to each of its Common Units if the Carrying Value of the Partnership's property has been adjusted in accordance with <u>Exhibit B</u> in a corresponding amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Subject to <u>Section 6.1(e)</u>, if and to the extent any payment or reimbursement to the General Partner or STAG REIT made pursuant to <u>Section 7.7</u> or otherwise (other than distributions under <u>Article 5</u> or <u>Section 13.2</u>) is determined for U.S. federal income tax purposes not to constitute a payment of expenses to the Partnership, the amount so determined shall constitute a guaranteed payment with respect to capital within the meaning of Section 707(c) of the Code, shall be treated consistently therewith by the Partnership and all Partners and shall not be treated as a distribution for purposes of computing the Partners' Capital Accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Notwithstanding any provision in this Agreement to the contrary, if the Partnership pays or reimburses (directly or indirectly, including by reason of giving the General Partner or the STAG REIT or any direct or indirect Subsidiary of the STAG REIT Capital Account credit in excess of actual Capital Contributions made by the General Partner or the STAG REIT or any direct or indirect Subsidiary of the STAG REIT) fees, expenses or other costs pursuant to <u>Section 4.2</u>, <u>Section 4.3</u>, <u>Section 7.4</u> and/or <u>Section 7.7</u> or otherwise, and if failure to treat all or part of such payment or reimbursement as a distribution to the General Partner, the STAG REIT or any Subsidiary of the STAG REIT (as appropriate), or the receipt of Capital Account credit in excess of actual capital contributions, would cause the STAG REIT to recognize income that would cause the STAG REIT to fail to qualify as a REIT, then such payment or reimbursement (or portion thereof) shall be treated as a distribution to the General Partner, the STAG REIT or direct or indirect Subsidiary of the STAG REIT (as appropriate) for purposes of this Agreement, or the Capital Account credit in excess of actual capital contributions shall be reduced, in each case to the extent necessary to preserve the STAG REIT's status as a REIT. The Capital Account of the General Partner, the STAG REIT or any direct or

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indirect Subsidiary of the STAG REIT (as appropriate) shall be reduced by such direct or indirect payment or reimbursement (or a portion thereof) in the same manner as an actual distribution to the General Partner, the STAG REIT, or any direct or indirect Subsidiary of the STAG REIT (as appropriate). To the extent treated as distributions, such fees, expenses or other costs shall not be taken into account as Partnership fees, expenses or costs for the purposes of this Agreement. In the event that amounts are recharacterized as distributions or Capital Accounts are reduced pursuant to this <u>Section 6.1(e)</u>, allocations under <u>Section 6.1(a)</u>, <u>(b)</u> and <u>(c)</u> for the current and subsequent periods shall be adjusted, as reasonably determined by the General Partner, so that to the extent possible the Partners have the same Capital Account balances they would have had if this <u>Section 6.1(e)</u> had not applied. This <u>Section 6.1(e)</u> is intended to prevent direct or indirect reimbursements or payments under this Agreement from giving rise to a violation of the STAG REIT's REIT requirements while at the same time preserving to the extent possible the parties' intended economic arrangement and shall be interpreted and applied consistent with such intent.

**ARTICLE 7**

**MANAGEMENT AND OPERATIONS OF BUSINESS**

Section 7.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Management</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Except as otherwise expressly provided in this Agreement, all management powers over the business and affairs of the Partnership are and shall be exclusively vested in the General Partner, and no Limited Partner shall have any right to participate in or exercise control or management power over the business and affairs of the Partnership. The General Partner may not be removed by the Limited Partners, with or without cause, except with the consent of the General Partner. In addition to the powers now or hereafter granted to a general partner of a limited partnership under applicable law or which are granted to the General Partner under any other provision of this Agreement, the General Partner, subject to <u>Section 7.3</u> hereof, shall have full power and authority to do all things deemed necessary, desirable or convenient by it to conduct the business of the Partnership, to exercise all powers set forth in <u>Section 3.2</u> hereof and to effectuate the purposes set forth in <u>Section 3.1</u> hereof, including, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)the making of any expenditures, the lending or borrowing of money (including, without limitation, making prepayments on loans and borrowing money to permit the Partnership to make distributions to its Partners in such amounts as will permit STAG REIT (so long as STAG REIT desires to maintain its qualification as a REIT) to avoid the payment of any federal income tax (including, for this purpose, any excise tax pursuant to Section 4981 of the Code) and to make distributions to its stockholders in amounts sufficient to permit STAG REIT to maintain its qualification as a REIT), the assumption or guarantee of, or other contracting for, indebtedness and other liabilities, the issuance of evidence of indebtedness (including the securing of the same by deed, mortgage, deed of trust or other lien or encumbrance on the Partnership's assets) and the incurring of any obligations it deems necessary for the conduct of the activities of the Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)the making of tax, regulatory and other filings or elections, or rendering of periodic or other reports to governmental or other agencies having jurisdiction over the business or assets of the Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)the acquisition, sale, lease, transfer, exchange or other disposition of any assets of the Partnership (including the exercise or grant of any conversion, option, privilege, or subscription right or other right available in connection with any assets at any time held by the Partnership) or the merger or other combination of the Partnership with or into

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another entity (all of the foregoing subject to any prior approval only to the extent required by <u>Section 7.3</u> or <u>8.8</u> hereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)the mortgage, pledge, encumbrance or hypothecation of any assets of the Partnership, the use of the assets of the Partnership (including, without limitation, cash on hand) for any purpose consistent with the terms of this Agreement and on any terms that it sees fit, including, without limitation, the financing of the conduct of the operations of the Partnership, the General Partner, STAG REIT or any of the Partnership's, the General Partner's or STAG REIT's Subsidiaries, the lending of funds to other Persons (including, without limitation, the Subsidiaries of the Partnership, the General Partner and/or STAG REIT) and the repayment of obligations of the Partnership and its Subsidiaries and any other Person in which it has an equity investment, and the making of capital contributions to its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)the negotiation, execution, delivery and performance of any contracts, conveyances or other instruments that the General Partner considers useful or necessary or convenient to the conduct of the Partnership's operations or the implementation of the General Partner's powers under this Agreement, including, without limitation, contracting with consultants, accountants, legal counsel, other professional advisors and other agents and the payment of their expenses and compensation out of the Partnership's assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)the distribution of Partnership cash or other Partnership assets in accordance with this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)holding, managing, investing and reinvesting cash and other assets of the Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)the collection and receipt of revenues and income of the Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)the establishment of one or more divisions of the Partnership, the selection and dismissal of employees of the Partnership (including, without limitation, employees who may be designated as officers with titles such as "president," "vice president," "secretary" and "treasurer" of the Partnership), and agents, outside attorneys, accountants, consultants and contractors of the Partnership, and the determination of their compensation and other terms of employment or hiring;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)the maintenance of such insurance for the benefit of the Partnership and the Partners as it deems necessary or appropriate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi)the formation of, or acquisition of an interest in, and the contribution of property to, any further limited or general partnerships, limited liability companies, real estate investment trusts, corporations, entities that are treated as REITs, "taxable REIT subsidiaries" or foreign corporations for federal income tax purposes, joint ventures or other relationships that it deems desirable (including, without limitation, the acquisition of interests in, and the contributions of property or the making of loans to, its, STAG REIT's or the General Partner's Subsidiaries and any other Person in which it has an equity investment from time to time or the incurrence of indebtedness on behalf of such Persons or the guarantee of obligations of such Persons and the making of any tax, regulatory or other filing or election with respect to any of the foregoing Persons); <u>provided</u>, that as long as STAG REIT has determined to continue to qualify as a REIT, the Partnership may not engage in any such formation, acquisition or contribution that would cause STAG REIT to fail to qualify as a REIT;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii)the control of any matters affecting the rights and obligations of the Partnership, including the settlement, compromise, submission to arbitration or any other

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form of dispute resolution, or abandonment of, any claim, cause of action, liability, debt or damages, due or owing to or from the Partnership, the commencement or defense of suits, legal proceedings, administrative proceedings, arbitrations or other forms of dispute resolution, and the representation of the Partnership in all suits or legal proceedings, administrative proceedings, arbitrations or other forms of dispute resolution, the incurrence of legal expense, and the indemnification of any Person against liabilities and contingencies to the extent permitted by law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii)the undertaking of any action in connection with the Partnership's direct or indirect investment in any Subsidiary or any other Person (including, without limitation, the contribution or loan of funds by the Partnership to such Persons);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv)except as otherwise specifically set forth in this Agreement, the determination of the fair market value of any Partnership property distributed in kind using such reasonable method of valuation as the General Partner may adopt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv)the enforcement of any rights against any Partner pursuant to representations, warranties, covenants and indemnities relating to such Partner's contribution of property or assets to the Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi)the exercise, directly or indirectly, through any attorney-in-fact acting under a general or limited power of attorney, of any right, including the right to vote, appurtenant to any asset or investment held by the Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii)the exercise of any of the powers of the General Partner enumerated in this Agreement on behalf of or in connection with any Subsidiary of the Partnership or any other Person in which the Partnership has a direct or indirect interest, or jointly with any such Subsidiary or other Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii)the exercise of any of the powers of the General Partner enumerated in this Agreement on behalf of any Person in which the Partnership does not have an interest pursuant to contractual or other arrangements with such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix)the making, execution, delivery and performance of any and all deeds, leases, notes, mortgages, deeds of trust, security agreements, conveyances, contracts, guarantees, warranties, indemnities, waivers, releases or legal instruments or agreements in writing necessary, appropriate or convenient, in the judgment of the General Partner, for the accomplishment of any of the powers of the General Partner enumerated in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx)the issuance of additional OP Units and other Partnership Interests, as appropriate, in connection with Capital Contributions by Additional Limited Partners and additional Capital Contributions by Partners pursuant to <u>Article 4</u> hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi)the taking of any action necessary or appropriate to enable STAG REIT to qualify as a REIT;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxii)the management, operation, leasing, landscaping, repair, alteration, demolition, replacement or improvement of any Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiii)an election to dissolve the Partnership pursuant to <u>Section 13.1(c)</u> hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiv)the amendment and restatement of <u>Exhibit A</u> hereto to reflect accurately at all times the Capital Contributions and Percentage Interests of the Partners as the

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same are adjusted from time to time to the extent necessary to reflect redemptions, Capital Contributions, the issuance of OP Units, the admission of any Additional Limited Partner or any Substituted Limited Partner or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxv)the registration of any class of securities of the Partnership under the Securities Act or the Exchange Act, and the listing of any debt securities of the Partnership on any exchange; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxvi)the taking of any and all acts necessary or prudent to ensure that the Partnership will not be classified as a "publicly traded partnership" under Code Section 7704.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Each of the Limited Partners agrees that the General Partner is authorized to execute, deliver and perform the above-mentioned agreements and transactions on behalf of the Partnership without any further act, approval or vote of the Partners, notwithstanding any other provision of this Agreement (except as provided in <u>Section 7.3</u>), the Act or any applicable law, rule or regulation, to the fullest extent permitted under the Act or other applicable law, rule or regulation. The execution, delivery or performance by the General Partner or the Partnership of any agreement authorized or permitted under this Agreement shall not constitute a breach by the General Partner of any duty that the General Partner may owe the Partnership or the Limited Partners or any other Persons under this Agreement or of any duty stated or implied by law or equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)At all times from and after the date hereof, the General Partner may cause the Partnership to establish and maintain working capital accounts and other cash or similar balances in such amounts as the General Partner, in its sole and absolute discretion, deems appropriate and reasonable from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)In exercising its authority under this Agreement, the General Partner may, but shall be under no obligation to, take into account the tax consequences to any Partner of any action taken by it. The General Partner and the Partnership shall not be liable to a Limited Partner under any circumstances as a result of an income tax liability incurred by such Limited Partner as a result of an action (or inaction) by the General Partner taken pursuant to its authority under this Agreement and in accordance with the terms of <u>Section 7.3</u>.

Section 7.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Certificate of Limited Partnership</u>.

The General Partner has filed the Certificate with the Secretary of State of the State of Delaware as required by the Act. The General Partner shall use all reasonable efforts to cause to be filed such other certificates or documents as may be reasonable and necessary or appropriate for the formation, continuation, qualification and operation of a limited partnership (or a partnership in which the limited partners have limited liability) in the State of Delaware and any other state, or the District of Columbia, in which the Partnership may elect to do business or own property. To the extent that such action is determined by the General Partner to be reasonable and necessary or appropriate or convenient, the General Partner shall file amendments to and restatements of the Certificate and do all of the things to maintain the Partnership as a limited partnership (or a partnership in which the limited partners have limited liability) under the laws of the State of Delaware and each other state, or the District of Columbia, in which the Partnership may elect to do business or own property. Subject to the terms of <u>Section 8.5(a)(iv)</u> hereof, the General Partner shall not be required, before or after filing, to deliver or mail a copy of the Certificate or any amendment thereto or restatement thereof to any Limited Partner.

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Section 7.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Restrictions on General Partner Authority</u>.

The General Partner may not take any action in contravention of an express prohibition or limitation of this Agreement without the written Consent of the Limited Partners, or such other percentage of the Limited Partners as may be specifically provided for under a provision of this Agreement.

Section 7.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Reimbursement of the General Partner</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Except as provided in this <u>Section 7.4</u> and elsewhere in this Agreement (including the provisions of <u>Articles 5</u> and <u>6</u> regarding distributions, payments, and allocations to which it may be entitled), the General Partner shall not be compensated for its services as general partner of the Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The General Partner and its Affiliates shall be reimbursed on a monthly basis, or such other basis as the General Partner may determine in its sole and absolute discretion, for all expenditures that each incurs relating to the ownership and operation of, or for the benefit of, the Partnership; <u>provided</u>, that the amount of any such reimbursement shall be reduced by any interest earned by the General Partner with respect to bank accounts or other instruments or accounts held by it on behalf of the Partnership; and <u>provided</u>, <u>further</u>, that the General Partner and its Affiliates shall not be reimbursed for any (i) directors' fees; (ii) income tax liabilities or (iii) filing or similar fees in connection with maintaining the General Partner's or any such Affiliate's continued existence that are incurred by the General Partner or an Affiliate, but the Partners acknowledge that all other expenses of the General Partner and its Affiliates are deemed to be for the benefit of the Partnership. Such reimbursement shall be in addition to any reimbursement made as a result of indemnification pursuant to <u>Section 7.7</u> hereof. Included among the expenditures for which the General Partner shall be entitled to reimbursement hereunder shall be any payments of debt service made by the General Partner, in its capacity as General Partner, as guarantor or otherwise, with respect to indebtedness encumbering any property held by the Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)As set forth in <u>Section 4.3</u>, STAG REIT shall be treated as having made a Capital Contribution in the amount of all expenses that it incurred or incurs and paid or pays relating to any REIT Share Offering and any other issuance of REIT Shares, other securities or New Securities pursuant to <u>Section 4.2</u>, the proceeds from the issuance of which were or are contributed to the Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)In the event that STAG REIT shall elect to purchase from its stockholders REIT Shares for the purpose of delivering such REIT Shares to satisfy an obligation under any distribution reinvestment program adopted by STAG REIT, any employee share purchase plan adopted by STAG REIT or Management Company, or any similar obligation or arrangement undertaken by STAG REIT in the future, the purchase price paid by STAG REIT for such REIT Shares and any other expenses incurred by STAG REIT in connection with such purchase shall be considered expenses of the Partnership and shall be reimbursed to the General Partner, subject to the condition that: (i) if such REIT Shares subsequently are sold by STAG REIT, the General Partner shall pay to the Partnership any proceeds received by STAG REIT for such REIT Shares (which sales proceeds shall include the amount of distributions reinvested under any distribution reinvestment or similar program; <u>provided</u>, that a transfer of REIT Shares for Common Units pursuant to <u>Section 8.6</u> would not be considered a sale for such purposes); and (ii) if such REIT Shares are not retransferred by STAG REIT within thirty (30) days after the purchase thereof, the General Partner shall cause the Partnership to cancel a number of Common Units held by STAG REIT equal to the product obtained by multiplying the Conversion Factor by the number of such REIT Shares (in which case such reimbursement shall be treated as a distribution in redemption of Common Units held by the General Partner).

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Section 7.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Outside Activities of the General Partner</u>.

Neither the General Partner nor STAG REIT shall directly or indirectly enter into or conduct any business, other than in connection with, (a) the ownership, acquisition and disposition of Partnership Interests, (b) the management of the business and affairs of the Partnership, (c) the operation of STAG REIT as a reporting company with a class (or classes) of securities registered under the Exchange Act, (d) the operations of STAG REIT as a REIT, (e) the offering, sale, syndication, private placement or public offering of stock, bonds, securities or other interests of STAG REIT or the Partnership, (f) financing or refinancing of any type related to the Partnership or its assets or activities, and (g) such activities as are incidental thereto; <u>provided</u>, <u>however</u>, that the General Partner or STAG REIT may, in its sole and absolute discretion, from time to time hold or acquire assets in its own name or otherwise other than through the Partnership so long as the General Partner or STAG REIT, as applicable, takes commercially reasonable measures to ensure that the economic benefits and burdens of such Property are otherwise vested in the Partnership, through assignment, mortgage loan or otherwise. Nothing contained herein shall be deemed to prohibit the General Partner or STAG REIT from executing guarantees of Partnership debt.

Section 7.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Contracts with Affiliates</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Partnership may lend or contribute funds or other assets to its, the General Partner's or STAG REIT's Subsidiaries or other Persons in which it, the General Partner or STAG REIT has an equity investment and such Persons may borrow funds from the Partnership, on terms and conditions established in the sole and absolute discretion of the General Partner. The foregoing authority shall not create any right or benefit in favor of any Subsidiary or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Partnership may transfer assets to joint ventures, other partnerships, limited liability companies, real estate investment trusts, corporations or other business entities in which it is or thereby becomes a participant upon such terms and subject to such conditions consistent with this Agreement and applicable law as the General Partner, in its sole and absolute discretion, believes are advisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Except as expressly permitted by this Agreement, neither the General Partner nor any of its Affiliates shall sell, transfer or convey any property to, or purchase any property from, the Partnership, directly or indirectly, except pursuant to transactions that are determined by the General Partner in good faith to be fair and reasonable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The General Partner, in its sole and absolute discretion, and without the approval of the Limited Partners, may propose and adopt, on behalf of the Partnership, employee benefit plans, share option plans, and similar plans (including without limitation plans that contemplate the issuance of LTIP Units) funded by the Partnership for the benefit of employees of Management Company, STAG REIT, the General Partner, the Partnership, Subsidiaries of the Partnership or any Affiliate of any of them in respect of services performed, directly or indirectly, for the benefit of the Partnership, the General Partner, STAG REIT or any Subsidiaries of the Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The General Partner is expressly authorized to enter into, in the name and on behalf of the Partnership, and without the approval of the Limited Partners, a right of first opportunity arrangement and other conflict avoidance agreements with the General Partner, STAG REIT, the Management Company and various Affiliates of the Partnership, the General Partner, STAG REIT, the Management Company, on such terms as the General Partner, in its sole and absolute discretion, believes are advisable, including but not limited to, a co-investment and allocation agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)The General Partner is expressly authorized to enter into, in the name and on behalf of the Partnership, any services agreement with Affiliates of any of the Partnership, the General Partner, STAG REIT, on such terms as the General Partner, in its sole and absolute discretion, believes are advisable.

Section 7.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)To the fullest extent permitted by Delaware law, the Partnership shall indemnify each Indemnitee from and against any and all losses, claims, damages, liabilities, joint or several, expenses (including, without limitation, attorneys' fees and other legal fees and expenses), judgments, fines, settlements, and other amounts arising from any and all claims, demands, actions, suits or proceedings, civil, criminal, administrative or investigative, that relate to the operations of the Partnership or the General Partner as set forth in this Agreement, in which such Indemnitee may be involved, or is threatened to be involved, as a party or otherwise, except to the extent such Indemnitee acted in bad faith, or with gross negligence or willful misconduct. Without limitation, the foregoing indemnity shall extend to any liability of any Indemnitee, pursuant to a loan guaranty or otherwise for any indebtedness of the Partnership or any Subsidiary of the Partnership (including without limitation, any indebtedness which the Partnership or any Subsidiary of the Partnership has assumed or taken subject to), and the General Partner is hereby authorized and empowered, on behalf of the Partnership, to enter into one or more indemnity agreements consistent with the provisions of this <u>Section 7.7</u> in favor of any Indemnitee having or potentially having liability for any such indebtedness. Any indemnification pursuant to this <u>Section 7.7</u> shall be made only out of the assets of the Partnership, and neither the General Partner nor any Limited Partner shall have any obligation to contribute to the capital of the Partnership, or otherwise provide funds, to enable the Partnership to fund its obligations under this <u>Section 7.7</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Reasonable expenses incurred by an Indemnitee who is a party to a proceeding shall be paid or reimbursed by the Partnership in advance of the final disposition of the proceeding, upon receipt by the Partnership of (i) a written affirmation by the Indemnitee of the Indemnitee's good faith belief that the standard of conduct necessary for indemnification by the Partnership as authorized in <u>Section 7.7(a)</u> has been met, and (ii) an undertaking by or on behalf of the Indemnitee to repay such amount if it shall be determined that the Indemnitee is not entitled to be indemnified as authorized in <u>Section 7.7(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The indemnification provided by this <u>Section 7.7</u> shall be in addition to any other rights to which an Indemnitee or any other Person may be entitled under any agreement, pursuant to any vote of the Partners, as a matter of law or otherwise, and shall continue as to an Indemnitee who has ceased to serve in such capacity and shall inure to the benefit of the heirs, successors, assigns and administrators of the Indemnitee unless otherwise provided in a written agreement with such Indemnitee or in the writing pursuant to which such Indemnitee is indemnified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The Partnership may, but shall not be obligated to, purchase and maintain insurance, on behalf of the Indemnitees and such other Persons as the General Partner shall determine, against any liability that may be asserted against or expenses that may be incurred by such Person in connection with the Partnership's activities, regardless of whether the Partnership would have the power to indemnify such Person against such liability under the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Any liabilities which an Indemnitee incurs as a result of acting on behalf of the Partnership, the General Partner or STAG REIT (whether as a fiduciary or otherwise) in connection with the operation, administration or maintenance of an employee benefit plan or any related trust or funding mechanism (whether such liabilities are in the form of excise taxes

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assessed by the IRS, penalties assessed by the Department of Labor, restitutions to such a plan or trust or other funding mechanism or to a participant or beneficiary of such plan, trust or other funding mechanism, or otherwise) shall be treated as liabilities or judgments or fines under this <u>Section 7.7</u>, unless such liabilities arise as a result of (i) such Indemnitee's intentional misconduct or knowing violation of the law; (ii) any transaction in which such Indemnitee received a personal benefit in violation or breach of any provision of this Agreement or applicable law; or (iii) in the case of any criminal proceeding, the Indemnitee had reasonable cause to believe that the act or omission was unlawful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)In no event may an Indemnitee subject any of the Partners to personal liability by reason of the indemnification provisions set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)An Indemnitee shall not be denied indemnification in whole or in part under this <u>Section 7.7</u> because the Indemnitee had an interest in the transaction with respect to which the indemnification applies if the transaction was otherwise permitted by the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)The provisions of this <u>Section 7.7</u> are for the benefit of the Indemnitees, their heirs, successors, assigns and administrators and shall not be deemed to create any rights for the benefit of any other Persons. Any amendment, modification or repeal of this <u>Section 7.7</u> or any provision hereof shall be prospective only and shall not in any way affect the Partnership's liability to any Indemnitee under this <u>Section 7.7</u>, as in effect immediately prior to such amendment, modification, or repeal with respect to claims arising from or relating to matters occurring, in whole or in part, prior to such amendment, modification or repeal, regardless of when such claims may arise or be asserted.

Section 7.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Liability of the General Partner</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Notwithstanding anything to the contrary set forth in this Agreement, none of the General Partner, its Affiliates, or any of their respective officers, trustees, directors, stockholders, partners, members, employees, representatives or agents or any officer, employee, representative or agent of the Partnership and its Affiliates (individually, a "<u>Covered Person</u>" and collectively, the "<u>Covered Persons</u>") shall be liable for monetary damages to the Partnership, any Partners or any Assignees for losses sustained or liabilities incurred as a result of errors in judgment or of any act or omission if the Covered Person's conduct did not constitute bad faith, gross negligence or willful misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Limited Partners expressly acknowledge that the General Partner is acting on behalf of the Partnership and the stockholders of STAG REIT collectively, that the General Partner is under no obligation to consider the separate interests of the Limited Partners (except as otherwise provided herein) in deciding whether to cause the Partnership to take (or decline to take) any actions, and that the General Partner shall not be liable for monetary damages for losses sustained, liabilities incurred, or benefits not derived by Limited Partners in connection with such decisions; <u>provided</u>, that the General Partner has acted in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The General Partner may exercise any of the powers granted to it by this Agreement and perform any of the duties imposed upon it hereunder either directly or by or through its employees and agents. The General Partner shall not be responsible for any misconduct or negligence on the part of any such employee or agent appointed by the General Partner in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Any amendment, modification or repeal of this <u>Section 7.8</u> or any provision hereof shall be prospective only and shall not in any way affect the limitations on the Covered Person's liability to the Partnership and the Limited Partners under this <u>Section 7.8</u> as in

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effect immediately prior to such amendment, modification or repeal with respect to claims arising from or relating to matters occurring, in whole or in part, prior to such amendment, modification or repeal, regardless of when such claims may arise or be asserted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)To the extent that, at law or in equity, a Covered Person has duties (including fiduciary duties) and liabilities relating thereto to the Partnership or to the Partners, any Covered Person acting under this Agreement or otherwise shall not be liable to the Partnership or to any Partner for its good faith reliance on the provisions of this Agreement. The provisions of this Agreement, to the extent that they restrict the duties and liabilities of a Covered Person otherwise existing at law or in equity, are agreed by the Partners to replace such other duties and liabilities of such Covered Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Whenever in this Agreement the General Partner is permitted or required to make a decision (i) in its "sole discretion" or "discretion," or under a similar grant of authority or latitude, the General Partner shall be entitled to consider such interests and factors as it desires and may consider its own interests and the interests of STAG REIT, and shall have no duty or obligation to give any consideration to any interest of or factors affecting the Partnership or the Limited Partners; or (ii) in its "good faith" or under another express standard, the General Partner shall act under such express standard and shall not be subject to any other or different standards imposed by this Agreement or by law or in equity or any other agreement contemplated herein or otherwise.

Section 7.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Matters Concerning the General Partner</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The General Partner may rely and shall be protected in acting, or refraining from acting, upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, bond, debenture, or other paper or document believed by it in good faith to be genuine and to have been signed or presented by the proper party or parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The General Partner may consult with legal counsel, accountants, appraisers, management consultants, investment bankers, architects, engineers, environmental consultants and other consultants and advisers selected by it, and any act taken or omitted to be taken in reliance upon the opinion of such Persons as to matters which the General Partner reasonably believes to be within such Person's professional or expert competence shall be conclusively presumed to have been done or omitted in good faith and in accordance with such opinion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The General Partner shall have the right, in respect of any of its powers or obligations hereunder, to act through any of its duly authorized officers and duly appointed attorneys-in-fact. Each such attorney shall, to the extent provided by the General Partner in the power of attorney, have full power and authority to do and perform each and every act and duty which is permitted or required to be done by the General Partner hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Notwithstanding any other provisions of this Agreement or the Act, any action of the General Partner on behalf of the Partnership or any decision of the General Partner to refrain from acting on behalf of the Partnership, undertaken in the good faith belief that such action or omission is necessary or advisable in order (i) to protect the ability of STAG REIT to continue to qualify as a REIT or (ii) to avoid STAG REIT incurring any taxes under Section 337(d), 857, 1374 or 4981 of the Code, is expressly authorized under this Agreement and is deemed approved by all of the Limited Partners.

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Section 7.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Title to Partnership Assets</u>.

Title to Partnership assets, whether real, personal or mixed and whether tangible or intangible, shall be deemed to be owned by the Partnership as an entity, and no Partner, individually or collectively, shall have any ownership interest in such Partnership assets or any portion thereof. Title to any or all of the Partnership assets may be held in the name of the Partnership, the General Partner or one or more nominees, as the General Partner may determine in its sole and absolute discretion, including Affiliates of the General Partner. The General Partner hereby declares and warrants that any Partnership assets for which legal title is held in the name of the General Partner or any nominee or Affiliate of the General Partner shall be held by the General Partner for the use and benefit of the Partnership in accordance with the provisions of this Agreement; <u>provided</u>, <u>however</u>, that the General Partner shall use its best efforts to cause beneficial and record title to such assets to be vested in the Partnership as soon as reasonably practicable. All Partnership assets shall be recorded as the property of the Partnership in its books and records, irrespective of the name in which legal title to such Partnership assets is held.

Section 7.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Reliance by Third Parties</u>.

Notwithstanding anything to the contrary in this Agreement, any Person dealing with the Partnership shall be entitled to assume that the General Partner has full power and authority, without consent or approval of any other Partner or Person, to encumber, sell or otherwise use in any manner any and all assets of the Partnership and to enter into any contracts on behalf of the Partnership, and take any and all actions on behalf of the Partnership and such Person shall be entitled to deal with the General Partner as if the General Partner were the Partnership's sole party in interest, both legally and beneficially. Each Limited Partner hereby waives any and all defenses or other remedies which may be available against such Person to contest, negate or disaffirm any action of the General Partner in connection with any such dealing. In no event shall any Person dealing with the General Partner or its representatives be obligated to ascertain that the terms of this Agreement have been complied with or to inquire into the necessity or expedience of any act or action of the General Partner or its representatives. Each and every certificate, document or other instrument executed on behalf of the Partnership by the General Partner or its representatives shall be conclusive evidence in favor of any and every Person relying thereon or claiming thereunder that (i) at the time of the execution and delivery of such certificate, document or instrument, this Agreement was in full force and effect; (ii) the Person executing and delivering such certificate, document or instrument was duly authorized and empowered to do so for and on behalf of the Partnership; and (iii) such certificate, document or instrument was duly executed and delivered in accordance with the terms and provisions of this Agreement and is binding upon the Partnership.

**ARTICLE 8**

**RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS**

Section 8.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitation of Liability</u>.

The Limited Partners shall have no liability under this Agreement (other than for breach thereof) except as expressly provided in this Agreement, including <u>Section 10.5</u> hereof, or under the Act.

Section 8.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Management of Business</u>.

No Limited Partner or Assignee (other than the General Partner, any of its Affiliates or any officer, trustee, director, member, employee or agent of the General Partner, the Partnership

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or any of their Affiliates, in their capacity as such) shall take part in the operation, management or control (within the meaning of the Act) of the Partnership's business, transact any business in the Partnership's name or have the power to sign documents for or otherwise bind the Partnership. The transaction of any such business by the General Partner, any of its Affiliates or any officer, trustee, director, member, employee or agent of the General Partner, the Partnership or any of their Affiliates, in their capacity as such, shall not affect, impair or eliminate the limitations on the liability of the Limited Partners or Assignees under this Agreement.

Section 8.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Outside Activities of Limited Partners</u>.

Subject to any agreements entered into pursuant to <u>Section 7.6(e)</u> hereof and any other agreements entered into by a Limited Partner or its Affiliates with the General Partner, the Partnership or any of its Subsidiaries or any Affiliate thereof, any Limited Partner and any officer, trustee, director, member, employee, agent, Affiliate or stockholder of any Limited Partner shall be entitled to and may have business interests and engage in business activities in addition to those relating to the Partnership, including business interests and activities that are in direct competition with the Partnership or that are enhanced by the activities of the Partnership. Neither the Partnership nor any Partners shall have any rights by virtue of this Agreement in any business ventures of any Limited Partner or Assignee. None of the Limited Partners nor any other Person shall have any rights by virtue of this Agreement or the Partnership relationship established hereby in any business ventures of any other Person (other than the General Partner, to the extent expressly provided herein) and such Person shall have no obligation pursuant to this Agreement, subject to the provisions of any other written agreements entered into by a Limited Partner or its Affiliates with the General Partner, the Partnership or a Subsidiary, to offer any interest in any such business ventures to the Partnership, any Limited Partner, the General Partner or any such other Person, even if such opportunity is of a character which, if presented to the Partnership, any Limited Partner, the General Partner or such other Person, could be taken by such Person.

Section 8.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Return of Capital</u>.

Except pursuant to the right of redemption set forth in <u>Section 8.6</u>, no Limited Partner shall be entitled to the withdrawal or return of its Capital Contribution, except to the extent of distributions made pursuant to this Agreement or upon termination of the Partnership as provided herein. Except to the extent provided by <u>Exhibit C</u> hereof or as otherwise expressly provided in this Agreement, no Limited Partner or Assignee shall have priority over any other Limited Partner or Assignee, either as to the return of Capital Contributions or as to profits, losses or distributions.

Section 8.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Rights of Limited Partners Relating to the Partnership</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)In addition to the other rights provided by this Agreement or by the Act, and except as limited by <u>Section 8.5(c)</u> hereof, each Limited Partner shall have the right, for a purpose reasonably related to such Limited Partner's interest as a limited partner in the Partnership, upon written demand with a statement of the purpose of such demand and at such Limited Partner's own expense (including such copying and administrative charges as the General Partner may establish from time to time):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)to obtain a copy of the most recent annual and quarterly reports prepared by STAG REIT and distributed to its stockholders, including annual and quarterly reports filed with the Securities and Exchange Commission by STAG REIT pursuant to the Exchange Act;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)to obtain a copy of the Partnership's federal, state and local income tax returns for each Partnership Year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)to obtain a current list of the name and last known business, residence or mailing address of each Partner; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)to obtain a copy of this Agreement and the Certificate and all amendments thereto, together with executed copies of all powers of attorney pursuant to which this Agreement, the Certificate and all amendments thereto have been executed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Partnership shall notify the requesting Limited Partner, upon the written request of such Limited Partner, of the then current Conversion Factor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Notwithstanding any other provision of this <u>Section 8.5</u>, the General Partner may keep confidential from the Limited Partners, for such period of time as the General Partner determines in its sole and absolute discretion to be reasonable, any information that (i) the General Partner reasonably believes to be in the nature of trade secrets or other information, the disclosure of which the General Partner in good faith believes is not in the best interests of the Partnership or could damage the Partnership or its business; or (ii) the Partnership is required by law or by agreements with an unaffiliated third party to keep confidential.

Section 8.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Redemption Right</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)On or after the date that is one year from the date of the issuance of a Common Unit or Units to a Limited Partner, subject to <u>Sections 8.6(b)</u> and <u>8.6(c)</u> hereof and any separate agreement entered into between the Partnership and a Limited Partner, such Limited Partner shall have the right (the "<u>Redemption Right</u>") to require the Partnership to redeem on a Specified Redemption Date all or a portion of the Common Units held by such Limited Partner at a redemption price per Common Unit equal to and in the form of the Cash Amount to be paid by the Partnership; provided that the foregoing limitation shall not affect the Limited Partner's rights under <u>Section 11.2(b)</u> hereof. The Redemption Right shall be exercised pursuant to a Notice of Redemption delivered to the Partnership (with a copy to the General Partner) by the Limited Partner who is exercising the redemption right (the "<u>Redeeming Partner</u>"); <u>provided</u>, <u>however</u>, that the Partnership shall not be obligated to satisfy such Redemption Right if the STAG REIT elects to purchase the Common Units subject to the Notice of Redemption pursuant to <u>Section 8.6(b)</u>. A Limited Partner may not exercise the Redemption Right for less than one thousand (1,000) Common Units at any one time or, if such Limited Partner holds less than one thousand (1,000) Common Units, all of the Common Units held by such Partner. The Redeeming Partner shall have no right, with respect to any Common Units so redeemed, to receive any distributions with a Partnership Record Date on or after the Specified Redemption Date. The Assignee of any Limited Partner may exercise the rights of such Limited Partner pursuant to this <u>Section 8.6</u>, and such Limited Partner shall be deemed to have assigned such rights to such Assignee and shall be bound by the exercise of such rights by such Assignee. In connection with any exercise of such rights by an Assignee on behalf of a Limited Partner, the Cash Amount shall be paid by the Partnership directly to such Assignee and not to such Limited Partner. Any Common Units redeemed by the Partnership pursuant to this <u>Section 8.6(a)</u> shall be cancelled upon such redemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Notwithstanding the provisions of <u>Section 8.6(a)</u>, a Limited Partner that exercises the Redemption Right shall be deemed to have offered to sell the Common Units described in the Notice of Redemption to STAG REIT, and STAG REIT may, in its sole and absolute discretion, elect to purchase directly and acquire such Common Units by paying to the Redeeming Partner the REIT Shares Amount on the Specified Redemption Date, whereupon STAG REIT shall acquire the Common Units offered for redemption by the Redeeming Partner

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and shall be treated for all purposes of this Agreement as the owner of such Common Units. If STAG REIT shall elect to exercise its right to purchase Common Units under this <u>Section 8.6(b)</u> with respect to a Notice of Redemption, it shall so notify the Redeeming Partner within five (5) Business Days after the receipt by it of such Notice of Redemption. Unless STAG REIT (in its sole and absolute discretion) shall exercise its right to purchase Common Units from the Redeeming Partner pursuant to this <u>Section 8.6(b)</u>, STAG REIT shall not have any obligation to the Redeeming Partner or the Partnership with respect to the Redeeming Partner's exercise of the Redemption Right. In the event STAG REIT shall exercise its right to purchase Common Units with respect to the exercise of a Redemption Right in the manner described in the first sentence of this <u>Section 8.6(b)</u>, the Partnership shall have no obligation to pay any amount to the Redeeming Partner with respect to such Redeeming Partner's exercise of such Redemption Right, and each of the Redeeming Partner, the Partnership, the General Partner, and STAG REIT shall treat the transaction between STAG REIT and the Redeeming Partner, for federal income tax purposes, as a sale of the Redeeming Partner's Common Units to STAG REIT. Each Redeeming Partner agrees to execute such documents as the General Partner may reasonably require in connection with the issuance of REIT Shares upon exercise of the Redemption Right, including, if STAG REIT is relying upon the exemption from registration under the Securities Act provided by Regulation D promulgated under the Securities Act, or any successor rule, a document pursuant to which the Redeeming Partner makes a representation that it is an accredited investor; <u>provided</u>, <u>however</u>, that if the Redeeming Partner cannot make such representation, then the Redeeming Partner shall have no right to exercise its Redemption Right. In case of any reclassification of the REIT Shares (including, but not limited to, any reclassification upon a consolidation or merger in which STAG REIT is the continuing corporation) into securities other than REIT Shares, for purposes of this <u>Section 8.6(b)</u>, STAG REIT may thereafter exercise its right to purchase Common Units for the kind and amount of shares of such securities receivable upon such reclassification by a holder of the number of REIT Shares for which such Common Units could be purchased pursuant to this Section immediately prior to such reclassification. Any REIT Shares issued to a Redeeming Partner upon the exercise by STAG REIT of its right to purchase Common Units under this <u>Section 8.6(b)</u>, shall not be required to be registered under the Securities Act, unless subject to a separate agreement between STAG REIT and the Redeeming Partner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Notwithstanding the provisions of <u>Section 8.6(a)</u> and <u>Section 8.6(b)</u>, a Partner shall not be entitled, except as otherwise provided in a written agreement between the Partner and the Partnership, to exercise the Redemption Right pursuant to <u>Section 8.6(a)</u> to the extent that the delivery of REIT Shares to such Partner on the Specified Redemption Date by STAG REIT pursuant to <u>Section 8.6(b)</u> (regardless of whether or not STAG REIT would in fact exercise its rights under <u>Section 8.6(b)</u>) would (i) be prohibited under the Charter; (ii) require registration under the Securities Act; (iii) cause STAG REIT to no longer qualify as a REIT under the Code; or (iv) otherwise violate any applicable laws or regulations.

Section 8.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Conversion of LTIP Units</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)An LTIP Unitholder shall have the right (the "<u>Conversion Right</u>"), at his or her option, at any time to convert all or a portion of his or her Vested LTIP Units into Common Units; provided, however, that a holder may not exercise the Conversion Right for less than one hundred (100) Vested LTIP Units or, if such holder holds less than one hundred (100) Vested LTIP Units, all of the Vested LTIP Units held by such holder. Notwithstanding the foregoing, in no event may a holder of Vested LTIP Units convert a number of Vested LTIP Units that exceeds (x) the Economic Capital Account Balance of such Limited Partner, to the extent attributable to its ownership of LTIP Units, divided by (y) the Common Unit Economic Balance, in each case as determined as of the effective date of conversion (the "<u>Capital Account Limitation</u> "). LTIP Unitholders shall not have the right to convert Unvested LTIP Units into Common Units until they become Vested LTIP Units; provided, however, that when an LTIP

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Unitholder is notified of the expected occurrence of an event that will cause his or her Unvested LTIP Units to become Vested LTIP Units, such LTIP Unitholder may give the Partnership a Conversion Notice conditioned upon and effective as of the time of vesting and such Conversion Notice, unless subsequently revoked by the LTIP Unitholder, shall be accepted by the Partnership subject to such condition. Subject to <u>Section 8.7(c)</u>, the General Partner shall have the right at any time to cause a conversion of Vested LTIP Units into Common Units. In all cases, the conversion of any LTIP Units into Common Units shall be subject to the conditions and procedures set forth in this <u>Section 8.7</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Subject to the Capital Account Limitation, a holder of Vested LTIP Units may convert such Units into an equal number of fully paid and non-assessable Common Units, giving effect to all adjustments (if any) made pursuant to <u>Section 4.6(a)</u>. In order to exercise his or her Conversion Right, an LTIP Unitholder shall deliver a notice (a "<u>Conversion Notice</u>") in the form attached as <u>Exhibit F</u> to the Partnership (with a copy to the General Partner) not less than ten (10) nor more than sixty (60) days prior to a date (the "<u>Conversion Date</u>") specified in such Conversion Notice; provided, however, that if the General Partner has not given the LTIP Unitholders notice of a proposed or upcoming Transaction at least thirty (30) days prior to the effective date of such Transaction, then LTIP Unitholders shall have the right to deliver a Conversion Notice until the earlier of (x) the tenth (10th) day after such notice from the General Partner of a Transaction or (y) the third (3rd) Business Day immediately preceding the effective date of such Transaction. A Conversion Notice shall be provided in the manner provided in <u>Section 15.1</u>. Each LTIP Unitholder covenants and agrees with the Partnership that all Vested LTIP Units to be converted pursuant to this <u>Section 8.7(b)</u> shall be free and clear of all liens. Notwithstanding anything herein to the contrary, a holder of LTIP Units may deliver a Redemption Notice pursuant to <u>Section 8.6(a)</u> hereof relating to those Common Units that will be issued to such holder upon conversion of such LTIP Units into Common Units in advance of the Conversion Date; <u>provided, however</u>, that the redemption of such Common Units by the Partnership shall in no event take place until after the Conversion Date. For clarity, it is noted that the objective of this paragraph is to put an LTIP Unitholder in a position where, if he or she so wishes, the Common Units into which his or her Vested LTIP Units will be converted can be redeemed by the Partnership simultaneously with such conversion, with the further consequence that, if the STAG REIT elects to assume the Partnership's redemption obligation with respect to such Common Units under <u>Section 8.6(b)</u> hereof by delivering to such holder REIT Shares rather than cash, then such holder can have such REIT Shares issued to him or her simultaneously with the conversion of his or her Vested LTIP Units into Common Units. The General Partner shall cooperate with an LTIP Unitholder to coordinate the timing of the different events described in the foregoing sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Partnership, at any time at the election of the General Partner, may cause any number of Vested LTIP Units held by an LTIP Unitholder to be converted (a "<u>Forced Conversion</u>") into an equal number of Common Units, giving effect to all adjustments (if any) made pursuant to <u>Section 4.6(a)</u>; <u>provided</u>, <u>however</u>, that the Partnership may not cause a Forced Conversion of any LTIP Units that would not at the time be eligible for conversion at the option of such LTIP Unitholder pursuant to <u>Section 8.7(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)In order to exercise its right of Forced Conversion, the Partnership shall deliver a notice (a "<u>Forced Conversion Notice</u>") in the form attached as <u>Exhibit G</u> to the applicable LTIP Unitholder not less than ten (10) nor more than sixty (60) days prior to the Conversion Date specified in such Forced Conversion Notice. A Forced Conversion Notice shall be provided in the manner provided in <u>Section 15.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)A conversion of Vested LTIP Units for which the holder thereof has given a Conversion Notice or the Partnership has given a Forced Conversion Notice shall occur automatically after the close of business on the applicable Conversion Date without any action

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on the part of such LTIP Unitholder, as of which time such LTIP Unitholder shall be credited on the books and records of the Partnership with the issuance as of the opening of business on the next day of the number of Common Units issuable upon such conversion. After the conversion of LTIP Units as aforesaid, the Partnership shall deliver to such LTIP Unitholder, upon his or her written request, a certificate of the General Partner certifying the number of Common Units and remaining LTIP Units, if any, held by such LTIP Unitholder immediately after such conversion. The Assignee of any Limited Partner pursuant to <u>Article 11</u> hereof may exercise the rights of such Limited Partner pursuant to this <u>Section 8.7</u> and such Limited Partner shall be bound by the exercise of such rights by the Assignee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)For purposes of making future allocations under <u>Section 6.1(c)</u> and applying the Capital Account Limitation, the portion of the Economic Capital Account Balance of the applicable LTIP Unitholder that is treated as attributable to his or her LTIP Units shall be reduced, as of the date of conversion, by the product of the number of LTIP Units converted and the Common Unit Economic Balance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)If the Partnership, the General Partner or STAG REIT shall be a party to any transaction (including without limitation a merger, consolidation, unit exchange, self tender offer for all or substantially all Common Units or other business combination or reorganization, or sale of all or substantially all of the Partnership's assets, but excluding any transaction which constitutes an Adjustment Event) in each case as a result of which Common Units shall be exchanged for or converted into the right, or the holders of such Common Units shall otherwise be entitled, to receive cash, securities or other property or any combination thereof (each of the foregoing being referred to herein as a "<u>Transaction</u>"), then the General Partner shall, immediately prior to the Transaction, exercise its right to cause a Forced Conversion with respect to the maximum number of LTIP Units then eligible for conversion, taking into account any allocations that occur in connection with the Transaction or that would occur in connection with the Transaction if the assets of the Partnership were sold at the Transaction price or, if applicable, at a value determined by the General Partner in good faith using the value attributed to the Common Units in the context of the Transaction (in which case the Conversion Date shall be the effective date of the Transaction). In anticipation of such Forced Conversion and the consummation of the Transaction, the Partnership shall use commercially reasonable efforts to cause each LTIP Unitholder to be afforded the right to receive in connection with such Transaction in consideration for the Common Units into which his or her LTIP Units will be converted the same kind and amount of cash, securities and other property (or any combination thereof) receivable upon the consummation of such Transaction by a holder of the same number of Common Units, assuming such holder of Common Units is not a Person with which the Partnership consolidated or into which the Partnership merged or which merged into the Partnership or to which such sale or transfer was made, as the case may be (a "<u>Constituent Person</u>"), or an Affiliate of a Constituent Person. In the event that holders of Common Units have the opportunity to elect the form or type of consideration to be received upon consummation of a Transaction, prior to such Transaction the General Partner shall give prompt written notice to each LTIP Unitholder of such election, and shall use commercially reasonable efforts to afford the LTIP Unitholders the right to elect, by written notice to the General Partner, the form or type of consideration to be received upon conversion of each LTIP Unit held by such holder into Common Units in connection with such Transaction. If an LTIP Unitholder fails to make such an election, such holder (and any of its transferees) shall receive upon conversion of each LTIP Unit held by him or her (or by any of his or her transferees) the same kind and amount of consideration that a holder of a Common Unit would receive if such Common Unit holder failed to make such an election. Subject to the rights of the Partnership and the General Partner under any LTIP Unit Agreement and the Plan, the Partnership shall use commercially reasonable efforts to cause the terms of any Transaction to be consistent with the provisions of this <u>Section 8.7(g)</u> and to enter into an agreement with the successor or purchasing entity, as the case may be, for the benefit of any LTIP Unitholders whose LTIP Units will not be converted into Common

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Units in connection with the Transaction that will (i) contain provisions enabling the holders of LTIP Units that remain outstanding after such Transaction to convert their LTIP Units into securities as comparable as reasonably possible under the circumstances to the Common Units; and (ii) preserve as far as reasonably possible under the circumstances the distribution, special allocation, conversion, and other rights set forth in this Agreement for the benefit of the LTIP Unitholders.

Section 8.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Voting Rights of LTIP Units</u>.

LTIP Unitholders shall have (a) those voting rights required from time to time by applicable law, if any, (b) the same voting rights as a holder of Common Units, with the LTIP Units voting as a single class with the Common Units and having one vote per LTIP Unit; and (c) the additional voting rights that are expressly set forth below. So long as any LTIP Units remain outstanding, the Partnership shall not, without the affirmative vote of the holders of at least a majority of the LTIP Units outstanding at the time, given in person or by proxy, either in writing or at a meeting (voting separately as a class), amend, alter or repeal, whether by merger, consolidation or otherwise, the provisions of this Agreement applicable to LTIP Units so as to materially and adversely affect any right, privilege or voting power of the LTIP Units or the LTIP Unitholders as such, unless such amendment, alteration, or repeal affects equally, ratably and proportionately the rights, privileges and voting powers of the holders of Common Units; but subject, in any event, to the following provisions: (i) with respect to any Transaction, so long as the LTIP Units are treated in accordance with <u>Section 8.7(g)</u> hereof, the consummation of such Transaction shall not be deemed to materially and adversely affect such rights, preferences, privileges or voting powers of the LTIP Units or the LTIP Unitholders as such; and (ii) any creation or issuance of any OP Units or of any class or series of Partnership Interest, including, without limitation, additional Common Units or LTIP Units, whether ranking senior to, junior to, or on a parity with the LTIP Units with respect to distributions and the distribution of assets upon liquidation, dissolution or winding up, shall not be deemed to materially and adversely affect such rights, preferences, privileges or voting powers of the LTIP Units or the LTIP Unitholders as such. The foregoing voting provisions will not apply if, at or prior to the time when the act with respect to which such vote would otherwise be required will be effected, all outstanding LTIP Units shall have been converted into Common Units.

**ARTICLE 9**

**BOOKS, RECORDS, ACCOUNTING AND REPORTS**

Section 9.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Records and Accounting</u>.

The General Partner shall keep or cause to be kept at the principal office of the Partnership those records and documents required to be maintained by the Act and other books and records deemed by the General Partner to be appropriate with respect to the Partnership's business, including, without limitation, all books and records necessary to provide to the Limited Partners any information, lists and copies of documents required to be provided pursuant to <u>Section 9.3</u> hereof. Any records maintained by or on behalf of the Partnership in the regular course of its business may be kept on, or be in the form of, punch cards, magnetic tape, photographs, micrographics or any other information storage device; <u>provided</u>, that the records so maintained are convertible into clearly legible written form within a reasonable period of time. The books of the Partnership shall be maintained, for financial and tax reporting purposes, on an accrual basis in accordance with GAAP, or such other basis as the General Partner determines to be necessary or appropriate.

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Section 9.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Fiscal Year</u>.

The fiscal year of the Partnership shall be the calendar year.

Section 9.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Reports</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)As soon as practicable, but in no event later than the date on which STAG REIT mails its annual report to its stockholders, the General Partner shall cause to be mailed to each Limited Partner as of the close of the Partnership Year, an annual report containing financial statements of the Partnership, or of STAG REIT if such statements are prepared solely on a consolidated basis with STAG REIT, for such Partnership Year, presented in accordance with GAAP, such statements to be audited by a nationally recognized firm of independent public accountants selected by the General Partner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)As soon as practicable, but in no event later than the date on which STAG REIT mails its quarterly report to its stockholders, the General Partner shall cause to be mailed to each Limited Partner as of the last day of the calendar quarter (except the last calendar quarter of each year), a report containing unaudited financial statements of the Partnership, or of STAG REIT if such statements are prepared solely on a consolidated basis with STAG REIT, and such other information as may be required by applicable law or regulation, or as the General Partner determines to be appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Partnership shall also cause to be prepared such reports and/or information as are necessary for STAG REIT to determine its qualification as a REIT and its compliance with the requirements for REITs pursuant to the Code and Regulations.

**ARTICLE 10**

**TAX MATTERS**

Section 10.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Preparation of Tax Returns</u>.

The General Partner shall arrange for the preparation and timely filing of all returns of Partnership income, gains, deductions, losses and other items required of the Partnership for federal and state income tax purposes and shall use all reasonable efforts to furnish, within one hundred eighty (180) days of the close of each taxable year, the tax information reasonably required by Limited Partners for federal and state income tax reporting purposes.

Section 10.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Tax Elections</u>.

Except as otherwise provided herein, the General Partner shall, in its sole and absolute discretion, determine whether to make any available election pursuant to the Code or state or local tax laws. Notwithstanding the above, in making any such tax election the General Partner may, but shall be under no obligation to, take into account the tax consequences to the Limited Partners resulting from any such election.

The General Partner shall make such tax elections on behalf of the Partnership as the Limited Partners holding a majority of the Percentage Interests of the Limited Partners request; <u>provided</u>, that the General Partner believes that such election is not adverse to the interests of STAG REIT, including its interest in preserving its qualification as a REIT under the Code. The General Partner can elect to use any method permitted by Code Section 704(c) and the Regulations thereunder to take into account any variation between the adjusted basis of any property of the Partnership (including any property contributed to the Partnership by any Partner after the date hereof) and such property's Carrying Value. The General Partner shall have the

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right to seek to revoke any tax election it makes (including, without limitation, an election under Section 754 of the Code) upon the General Partner's determination, in its sole and absolute discretion, that such revocation is in the best interests of the Partners.

Section 10.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Tax Matters Partner/Partnership Representative</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)For taxable years beginning before January 1, 2018, <u>Section 10.3</u> as provided in the Amended and Restated Agreement shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)For taxable years beginning on or after January 1, 2018, the General Partner, or a person selected by the General Partner, shall be designated and shall act as the "partnership representative" pursuant to Section 6223 of the Code and any comparable state or local law with all of the rights, duties and powers provided for in Sections 6221 through 6241 of the Code and any comparable state or local law. The partnership representative shall appoint on behalf of the Partnership a "designated individual" within the meaning of Section 301.6223-1(b)(3) of the Treasury Regulations, and a designated individual so appointed shall be treated as, and shall have the authority to take any action that may be taken by and shall be subject to the requirements and obligations of, the partnership representative for purposes of this <u>Section 10.3</u>. Subject to the terms of this Agreement, the partnership representative shall have full discretion to represent and bind the Partnership in any audit or administrative proceeding conducted by any taxing authority, including, without limitation, the power and authority (i) to make an election under Section 6223 (if available) or Section 6226 of the Code, and any Regulations promulgated in accordance therewith, (ii) to take, and to cause the Partnership to take, all actions necessary or convenient to give effect to such an election and (iii) to make use of, or cause the Partnership to make use of, any other options that are or may become available under applicable Code sections, Regulations or guidance. The taking of any action and the incurring of any expenses by the partnership representative in connection with any such audit or administrative proceeding, except to the extent required by law, is a matter in the sole discretion of the partnership representative and the provision relating to indemnification or liability of the General Partner set forth in <u>Section 7.7</u> and <u>7.8</u> and the provision relating to indemnification of the Indemnitees set forth in <u>Section 7.7</u> of this Agreement shall be fully applicable to the partnership representative in its capacity as such, and the partnership representative, in its capacity as such, shall be an Indemnitee for all purposes of this Agreement. Each Partner agrees to be bound by the decisions and elections of the partnership representative and shall provide such information and cooperation as shall be reasonably requested by the partnership representative in connection with such actions, including to reduce the amount of the Partnership's liability for any imputed underpayment in accordance with the procedures under Section 6225(c) of the Code and comparable state or local laws. To the extent that any taxes, penalties, and interest are payable by the Partnership in respect of an audit, the General Partner shall allocate such amounts (and any expenses incurred by the Partnership in adjudicating or otherwise resolving such liability), to the Partners to which such amounts are attributable, in the General Partner's discretion, and such amount shall be treated as provided under <u>Section 10.5</u>. A Partner's allocable share of any such amounts shall include amounts allocable to any prior owner(s) of such Partner's Partnership Interest. For the avoidance of doubt, notwithstanding anything to the contrary in this Agreement, the liabilities and obligations of each Partner under this <u>Section 10.3</u> shall survive (i) any actual or deemed transfer of an interest in the Partnership by such Partner, (ii) such Partner ceasing to be a Partner under this Agreement and (iii) the termination, dissolution, liquidation, cancellation, and winding up of the Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)All third party costs and expenses incurred by the partnership representative in performing its duties as such (including legal and accounting fees and expenses) shall be borne by the Partnership. Nothing herein shall be construed to restrict the Partnership from engaging an accounting and/or law firm to assist the partnership representative in

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discharging its duties hereunder, so long as the compensation paid by the Partnership for such services is reasonable.

Section 10.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Organizational Expenses</u>.

The Partnership shall elect to deduct expenses, if any, incurred by it in forming the Partnership ratably over a one-hundred eighty (180) month period as provided in Section 709 of the Code.

Section 10.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Withholding</u>.

Each Limited Partner hereby authorizes the Partnership to withhold from, or pay on behalf of or with respect to, such Limited Partner any amount of federal, state, local or foreign taxes that the General Partner determines that the Partnership is required to withhold or pay with respect to any amount distributable or allocable to such Limited Partner pursuant to this Agreement, including, without limitation, any taxes required to be withheld or paid by the Partnership pursuant to Section 1441, 1442, 1445, or 1446 of the Code, Section 6221 of the Code et seq. and comparable state and local laws, or any state pass-through entity tax provisions. Any amount paid on behalf of or with respect to a Limited Partner shall constitute a loan by the Partnership to such Limited Partner, which loan shall be repaid by such Limited Partner within fifteen (15) days after notice from the General Partner that such payment must be made unless (i) the Partnership withholds such payment from a distribution which would otherwise be made to the Limited Partner, (ii) the General Partner determines, in its sole and absolute discretion, that such payment may be satisfied out of the available funds of the Partnership which would, but for such payment, be distributed to the Limited Partner or (iii) treatment as a loan would jeopardize the STAG REIT's status as a REIT (in which case such Limited Partner shall pay such amount to the Partnership on or before the date the Partnership pays such amount on behalf of such Limited Partner). To the extent that such payment results in an expense of the Partnership, such expense shall be specially allocated to the applicable Limited Partners. Any amounts withheld pursuant to the foregoing clause (i) or (ii) shall be treated as having been distributed to such Limited Partner unless, in the case of amounts governed by clause (iii), the Limited Partner timely pays the amount withheld to the Partnership. Each Limited Partner hereby unconditionally and irrevocably grants to the Partnership a security interest in such Limited Partner's obligation to pay to the Partnership any amounts required to be paid pursuant to this <u>Section 10.5</u>. In the event that a Limited Partner fails to pay any amounts owed to the Partnership pursuant to this <u>Section 10.5</u> when due, the General Partner may, in its sole and absolute discretion, elect to make the payment to the Partnership on behalf of such defaulting Limited Partner, and in such event shall be deemed to have loaned such amount to such defaulting Limited Partner and shall succeed to all rights and remedies of the Partnership as against such defaulting Limited Partner. Without limitation, in such event the General Partner shall have the right to receive distributions that would otherwise be distributable to such defaulting Limited Partner until such time as such loan, together with all interest thereon, has been paid in full, and any such distributions so received by the General Partner shall be treated as having been distributed to the defaulting Limited Partner and immediately paid by the defaulting Limited Partner to the General Partner in repayment of such loan. Any amounts payable by a Limited Partner hereunder shall bear interest at the lesser of (A) the base rate on corporate loans at large United States money center commercial banks, as published from time to time in <u>The Wall Street Journal</u>, plus four (4) percentage points, or (B) the maximum lawful rate of interest on such obligation, such interest to accrue from the date such amount is due (i.e., fifteen (15) days after demand) until such amount is paid in full. Each Limited Partner shall take such actions as the Partnership or the General Partner shall request in order to (i) perfect or enforce the security interest created hereunder and (ii) cause any loan arising hereunder to be treated as a real estate asset for purposes of Section 856(c)(4)(A) of the Code. Upon a Limited Partner's complete withdrawal from the Partnership, such Limited Partner shall be required to restore funds to the Partnership to the extent that the cumulative amount of

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taxes withheld from or paid on behalf of, or with respect to, such Limited Partner exceeds the sum of such amounts (i) repaid to the Partnership by such Limited Partner; (ii) withheld from distributions to such Limited Partner; and (iii) paid by the General Partner on behalf of such Limited Partner.

**ARTICLE 11**

**TRANSFERS AND WITHDRAWALS**

Section 11.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Transfer</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The term "transfer," when used in this <u>Article 11</u> with respect to an OP Unit, shall be deemed to refer to a transaction by which the General Partner purports to assign all or any part of its General Partner Interest to another Person or by which a Limited Partner purports to assign all or any part of its Limited Partner Interest to another Person, and includes a sale, assignment, gift, pledge, encumbrance, hypothecation, mortgage, exchange or any other disposition by law or otherwise. The term "transfer" when used in this <u>Article 11</u> does not include (i) any redemption of Partnership Interests by the Partnership from a Limited Partner; (ii) any acquisition of Common Units from a Limited Partner by the General Partner pursuant to <u>Section 8.6(b)</u>; or (iii) any distribution of OP Units by a Limited Partner to its beneficial owners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)No Partnership Interest shall be transferred, in whole or in part, except in accordance with the terms and conditions set forth in this <u>Article 11</u>. Any transfer or purported transfer of a Partnership Interest not made in accordance with this <u>Article 11</u> shall be null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Notwithstanding the other provisions of this <u>Article 11</u>, the General Partner may transfer all of its Partnership Interests at any time to any Person that is, at the time of such transfer, an Affiliate of the General Partner, including any "qualified REIT subsidiary" (within the meaning of Code Section 856(i)(2)), without the Consent of any Limited Partners. The provisions of <u>Sections 11.2(c)</u>, <u>11.3</u>, <u>11.4(a)</u> and <u>11.5</u> hereof shall not apply to any transfer permitted by this <u>Section 11.1(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)No part of the interest of a Partner shall be subject to the claims of any creditor, to any spouse for alimony or support, or to legal process, and may not be voluntarily or involuntarily alienated or encumbered except as may be specifically provided for in this Agreement.

Section 11.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Transfer of General Partner's Partnership Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The General Partner may not transfer any of its General Partner Interest or withdraw as General Partner, except as provided in <u>Sections 11.1(c)</u> or <u>11.2(b)</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The General Partner and STAG REIT may, with the Consent of the Limited Partners (excluding the Percentage Interests held directly or indirectly by STAG REIT), engage in, or transfer all of their respective Partnership Interest in connection with, (i) a merger, consolidation or other combination of their assets with another entity, (ii) a sale of all or substantially all of their assets, whether or not in the ordinary course, or (iii) a reclassification, recapitalization or change of any outstanding shares of STAG REIT's stock or other outstanding equity interests (each, a "<u>Termination</u> <u>Transaction</u>"). In addition, the General Partner and STAG REIT may, without the Consent of the Limited Partners, engage in, or transfer all of their respective Partnership Interest in connection with, a Termination Transaction if:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)in connection with such Termination Transaction, all of the Limited Partners will receive, or will have the right to elect to receive, for each Common Unit an amount of cash, securities or other property equal to the product of the Conversion Factor and the greatest amount of cash, securities or other property paid to a holder of one REIT Share in consideration of one REIT Share pursuant to the terms of such Termination Transaction; provided, that if, in connection with such Termination Transaction, a purchase, tender or exchange offer shall have been made to and accepted by the holders of the outstanding REIT Shares, each holder of Common Units shall receive, or shall have the right to elect to receive, the greatest amount of cash, securities or other property which such holder of Common Units would have received had it exercised its right to Redemption pursuant to <u>Section 8.6</u> hereof and received REIT Shares in exchange for its Common Units immediately prior to the expiration of such purchase, tender or exchange offer and had thereupon accepted such purchase, tender or exchange offer and then such Termination Transaction shall have been consummated; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)all of the following conditions are met: (A) substantially all of the assets directly or indirectly owned by the surviving entity are owned directly or indirectly by the Partnership or another limited partnership or limited liability company which is the survivor of a merger, consolidation or combination of assets with the Partnership (in each case, the "<u>Surviving Partnership</u>"); (B) the Persons who were Limited Partners immediately prior to the consummation of such Termination Transaction own a percentage interest of the Surviving Partnership based on the relative fair market value of the net assets of the Partnership and the other net assets of the Surviving Partnership immediately prior to the consummation of such transaction; (C) the rights, preferences and privileges in the Surviving Partnership of such Limited Partners are at least as favorable in all material respects as those in effect immediately prior to the consummation of such transaction and as those applicable to any other limited partners or non-managing members of the Surviving Partnership; and (D) the rights of such Limited Partners include at least one of the following: (1) the right to redeem their interests in the Surviving Partnership for the consideration available to such Persons pursuant to <u>Section 11.2(b)(i)</u> or (2) the right to redeem their interests in the Surviving Partnership for cash on terms substantially equivalent to those in effect with respect to their OP Units immediately prior to the consummation of such transaction, or, if the ultimate controlling Person of the Surviving Partnership has publicly traded common equity securities, such common equity securities, with an exchange ratio based on the determination of relative fair market value of such securities and the REIT Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Except as set forth in <u>Section 11.1(c)</u> or <u>11.2(b)</u>, the General Partner shall not withdraw from the Partnership and shall not transfer all or any portion of its Partnership Interest (whether by sale, disposition, statutory merger or consolidation, liquidation or otherwise). Upon any transfer of the General Partner's Partnership Interest in accordance with the provisions of this <u>Article 11</u>, the transferee shall become a successor General Partner for all purposes herein, and shall be vested with the powers and rights of the transferor General Partner, and shall be liable for all obligations and responsible for all duties of the General Partner, once such transferee has executed such instruments as may be necessary to effectuate such admission and to confirm the agreement of such transferee to be bound by all the terms and provisions of this Agreement with respect to the Partnership Interest so acquired. It is a condition to any transfer by the General Partner otherwise permitted hereunder that the transferee assumes, by operation of law or express agreement, all of the obligations of the transferor General Partner under this Agreement with respect to such transferred Partnership Interest, and such transfer shall relieve the transferor General Partner of its obligations under this Agreement. In the event that the General Partner withdraws from the Partnership, in violation of this Agreement or otherwise, or otherwise dissolves or terminates, or upon an Event of Bankruptcy of the General Partner, as described in <u>Section 13.1(g)</u> hereof, the remaining Partners may agree in writing to continue the business of the Partnership by selecting a successor General Partner in accordance with the Act.

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Section 11.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Transfer of Limited Partners' Partnership Interests</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Except as provided in <u>Section 11.3(b)</u>, no Limited Partner shall transfer all or any portion of its Partnership Interest to any transferee without the written consent of the General Partner, which consent may be withheld in its sole and absolute discretion; <u>provided</u>, <u>however</u>, that if a Limited Partner is subject to Incapacity, such Incapacitated Limited Partner may transfer all or any portion of its Partnership Interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Notwithstanding any other provision of this <u>Article 11</u> (but in all cases subject to the other provisions of this <u>Section 11.3</u>), a Limited Partner may transfer all or any portion of its Partnership Interest to any of its Affiliates and such transferee shall be admitted as a Substituted Limited Partner, all without obtaining the consent of the General Partner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)If a Limited Partner is subject to Incapacity, the executor, administrator, trustee, committee, guardian, conservator or receiver of such Limited Partner's estate shall have all of the rights of a Limited Partner, but not more rights than those enjoyed by other Limited Partners, for the purpose of settling or managing the estate and such power as the Incapacitated Limited Partner possessed to transfer all or any part of his or its interest in the Partnership. The Incapacity of a Limited Partner, in and of itself, shall not dissolve or terminate the Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Without limiting the generality of <u>Section 11.3(a)</u> hereof, the General Partner may prohibit any transfer by a Limited Partner of its Partnership Interest if, in the opinion of legal counsel to the Partnership, such transfer would require filing of a registration statement under the Securities Act or would otherwise violate any federal or state securities laws or regulations applicable to the Partnership or the OP Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)No transfer by a Limited Partner of its OP Units may be made to any Person if (i) in the opinion of legal counsel for the Partnership, it could reasonably be expected to cause the Partnership to be treated as an association taxable as a corporation or a publicly traded partnership within the meaning of either Code Section 469(k)(2) or 7704(b) or to fail to qualify for any safe harbor from treatment as a publicly traded partnership; (ii) such transfer is effectuated through an "established securities market" or a "secondary market" (or the substantial equivalent thereof) within the meaning of Section 7704 of the Code; (iii) such transfer would cause the Partnership to become, with respect to any employee benefit plan subject to Title I of ERISA or to Section 4975 of the Code, a "party- in-interest" (as defined in Section 3(14) of ERISA) or a "disqualified person" (as defined in Section 4975(e)(2) of the Code); (iv) such transfer would, in the opinion of legal counsel for the Partnership, cause any portion of the assets of the Partnership to constitute assets of any employee benefit plan pursuant to Department of Labor Regulations Section 2510.3-101; or (v) such transfer would subject the Partnership to be regulated under the Investment Company Act of 1940, as amended, the Investment Advisers Act of 1940, as amended, or the fiduciary responsibility provisions of ERISA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)No transfer of any OP Units may be made to a lender to the Partnership or any Person who is related (within the meaning of Section 1.752-4(b) of the Regulations) to any lender to the Partnership whose loan constitutes a Nonrecourse Liability, without the consent of the General Partner, in its sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)The General Partner shall keep a register for the Partnership on which the transfer, pledge or release of OP Units shall be shown and pursuant to which entries shall be made to effect all transfers, pledges or releases as required by the applicable sections of <u>Article 8</u> of the Uniform Commercial Code, as amended, in effect in the Commonwealth of Massachusetts and the State of Delaware; <u>provided</u>, <u>however</u>, that if there is any conflict between such requirements, the provisions of the Delaware Uniform Commercial Code shall govern. The

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General Partner shall (i) place proper entries in such register clearly showing each transfer and each pledge and grant of security interest and the transfer and assignment pursuant thereto, such entries to be endorsed by the General Partner; and (ii) maintain the register and make the register available for inspection by all of the Partners and their pledgees at all times during the term of this Agreement. Nothing herein shall be deemed a consent to any pledge or transfer otherwise prohibited under this Agreement.

Section 11.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Substituted Limited Partners</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)A transferee of the interest of a Limited Partner pursuant to a transfer consented to by the General Partner pursuant to <u>Section 11.3(a)</u> may be admitted as a Substituted Limited Partner only with the consent of the General Partner, which consent may be given or withheld by the General Partner in its sole and absolute discretion. The General Partner's failure or refusal to permit a transferee of any such interests to become a Substituted Limited Partner shall not give rise to any cause of action against the Partnership or the General Partner. A Person shall be admitted to the Partnership as a Substituted Limited Partner only upon the aforementioned consent of the General Partner and the furnishing to the General Partner of (i) evidence of acceptance, in form and substance satisfactory to the General Partner, of all of the terms and conditions of this Agreement, including, without limitation, the power of attorney granted in <u>Section 2.4</u> hereof; (ii) a counterpart signature page to this Agreement executed by such Person; and (iii) such other documents and instruments as may be required or advisable, in the sole and absolute discretion of the General Partner, to effect such Person's admission as a Substituted Limited Partner. The admission of any Person as a Substituted Limited Partner shall become effective on the date upon which the name of such Person is recorded on the books and records of the Partnership, following the consent of the General Partner to such admission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)A transferee who has been admitted as a Substituted Limited Partner in accordance with this <u>Article 11</u> shall have all the rights and powers and be subject to all the restrictions and liabilities of a Limited Partner under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Concurrently with, and as evidence of, the admission of a Substituted Limited Partner, the General Partner shall amend <u>Exhibit A</u> to reflect the name, address, number of OP Units and Percentage Interest (as applicable) of such Substituted Limited Partner and to eliminate or adjust, if necessary, the name, address and interest of the predecessor of such Substituted Limited Partner.

Section 11.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Assignees</u>.

If the General Partner, in its sole and absolute discretion, does not consent to the admission of any permitted transferee as a Substituted Limited Partner, as described in <u>Section 11.4</u>, such transferee shall be considered an Assignee for purposes of this Agreement. An Assignee shall be entitled to all the rights of an assignee of a limited partnership interest under the Act, including the right to receive distributions from the Partnership and the share of Net Income, Net Losses, Recapture Income and any other items of gain, loss, deduction and credit of the Partnership attributable to the Partnership Interest assigned to such transferee, but shall not be deemed to be a holder of a Partnership Interest for any other purpose under this Agreement, and shall not be entitled to request a redemption of its interest or to vote such Partnership Interest in any matter presented to the Limited Partners for a vote (such right to vote fully remaining with the transferor Limited Partner). In the event any such transferee desires to make a further assignment of any such Partnership Interest, such transferee shall be subject to all of the provisions of this <u>Article 11</u> to the same extent and in the same manner as any Limited Partner desiring to make an assignment of his or its Partnership Interest.

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Section 11.6&nbsp;&nbsp;&nbsp;&nbsp;<u>General Provisions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)No Limited Partner may withdraw from the Partnership other than as a result of a permitted transfer of all of such Limited Partner's Partnership Interest in accordance with this <u>Article 11</u> or pursuant to redemption of all of its OP Units, or the acquisition thereof by the General Partner, under <u>Section 8.6</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any Limited Partner who shall transfer all of its Partnership Interest in a transfer permitted pursuant to this <u>Article 11</u> shall cease to be a Limited Partner upon the admission of all Assignees of such Partnership Interest as Substituted Limited Partners. Similarly, any Limited Partner who shall transfer all of its OP Units pursuant to a redemption of all of its OP Units, or the acquisition thereof by the General Partner, under <u>Section 8.6</u> shall cease to be a Limited Partner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)If any Partnership Interest is transferred or assigned in compliance with the provisions of this <u>Article 11</u> or redeemed or transferred pursuant to <u>Section 8.6</u> on any day other than the first day of a Partnership Year, then Net Income, Net Losses, each item thereof and all other items attributable to such interest for such Partnership Year shall be divided and allocated between the transferor Partner and the transferee Partner by taking into account their varying interests during the Partnership Year in accordance with Section 706(d) of the Code, using the interim closing of the books method or another permissible method selected by the General Partner in its sole and absolute discretion. Solely for purposes of making such allocations, unless the General Partner decides in its sole and absolute discretion to use another method permitted under the Code, each of such items for the calendar month in which a Transfer occurs shall be allocated to the transferee Partner and none of such items for the calendar month in which a Transfer or a Redemption occurs shall be allocated to the transferor Partner, or the Redeeming Partner (as the case may be) if such Transfer occurs on or before the fifteenth (15th) day of the month, otherwise such items shall be allocated to the transferor. All distributions of Available Cash attributable to such Partnership Interest with respect to which the Partnership Record Date is before the date of such transfer, assignment, or redemption shall be made to the transferor Partner or the Redeeming Partner, as the case may be, and in the case of a transfer or assignment other than a redemption, all distributions of Available Cash thereafter attributable to such Partnership Interest shall be made to the transferee Partner.

**ARTICLE 12**

**ADMISSION OF PARTNERS**

Section 12.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Admission of Successor General Partner</u>.

A successor to all of the General Partner Interest pursuant to <u>Section 11.1(c)</u> or <u>11.2</u> hereof who is proposed to be admitted as a successor General Partner shall be admitted to the Partnership as the General Partner, effective immediately upon such transfer. Upon any such Transfer and the admission of any such transferee as a successor General Partner in accordance with this <u>Section 12.1</u>, the transferor General Partner shall be relieved of its obligations under this Agreement and shall cease to be a general partner of the Partnership without any separate Consent of the Limited Partners or the consent or approval of any other Partners. Any such transferee shall carry on the business of the Partnership without dissolution. In each case, the admission shall be subject to the successor General Partner executing and delivering to the Partnership an acceptance of all of the terms and conditions of this Agreement and such other documents or instruments as may be required to effect the admission. Concurrently with, and as evidence of, the admission of a successor General Partner, the General Partner shall amend <u>Exhibit A</u> and the books and records of the Partnership to reflect the name, address and number and classes and/or series of Partnership Units of such successor General Partner. In the case of

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such admission on any day other than the first day of a Partnership Year, all items attributable to the General Partner Interest for such Partnership Year shall be allocated between the transferring General Partner and such successor as provided in <u>Section 11.6(c)</u> hereof.

Section 12.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Admission of Additional Limited Partners</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)A Person who makes a Capital Contribution to the Partnership in accordance with this Agreement shall be admitted to the Partnership as an Additional Limited Partner only upon furnishing to the General Partner (i) evidence of acceptance, in form and substance satisfactory to the General Partner, of all of the terms and conditions of this Agreement, including, without limitation, the power of attorney granted in <u>Section 2.4</u> hereof; (ii) a counterpart signature page to this Agreement executed by such Person; and (iii) such other documents or instruments as may be required in the discretion of the General Partner in order to effect such Person's admission as an Additional Limited Partner. Concurrently with, and as evidence of, the admission of an Additional Limited Partner, the General Partner shall amend <u>Exhibit A</u> and the books and records of the Partnership to reflect the name, address and number and classes and/or series of Partnership Units of such Additional Limited Partner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Notwithstanding anything to the contrary in this <u>Section 12.2</u>, no Person shall be admitted as an Additional Limited Partner without the consent of the General Partner, which consent may be given or withheld in the General Partner's sole and absolute discretion. The admission of any Person as an Additional Limited Partner shall become effective on the date upon which the name of such Person is recorded on the books and records of the Partnership, following the consent of the General Partner to such admission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)If any Additional Limited Partner is admitted to the Partnership on any day other than the first day of a Partnership Year, then Net Income, Net Losses, each item thereof and all other items allocable among Partners and Assignees for such Partnership Year shall be allocated among such Additional Limited Partner and all other Partners and Assignees by taking into account their varying interests during the Partnership Year in accordance with Section 706(d) of the Code, using the interim closing of the books method or another permissible method selected by the General Partner in its sole and absolute discretion. All distributions of Available Cash with respect to which the Partnership Record Date is before the date of such admission shall be made solely to Partners and Assignees, other than such Additional Limited Partner, and all distributions of Available Cash thereafter shall be made to all of the Partners and Assignees, including such Additional Limited Partner.

Section 12.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendment of Agreement and Certificate of Limited Partnership</u>.

For the admission to the Partnership of any Partner, the General Partner shall take all steps necessary and appropriate under the Act to amend the records of the Partnership and, if necessary, to prepare as soon as practical an amendment of this Agreement (including an amendment of <u>Exhibit A</u>) and, if required by law, shall prepare and file an amendment to the Certificate and may for this purpose exercise the power of attorney granted pursuant to <u>Section 2.4</u> hereof.

Section 12.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Limit on Number of Partners</u>. Unless otherwise permitted by the General Partner in its sole and absolute discretion, no Person shall be admitted to the Partnership as an Additional Limited Partner if the effect of such admission would be to cause the Partnership to have a number of Partners that would cause the Partnership to become a reporting company under the Exchange Act.

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**ARTICLE 13**

**DISSOLUTION, LIQUIDATION AND TERMINATION**

Section 13.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Dissolution</u>.

The Partnership shall not be dissolved by the admission of Substituted Limited Partners or Additional Limited Partners or by the admission of a successor General Partner in accordance with the terms of this Agreement. Upon the withdrawal of the General Partner, any successor General Partner shall continue the business of the Partnership without dissolution. The Partnership shall dissolve, and its affairs shall be wound up, only upon the first to occur of any of the following ("<u>Liquidating</u> <u>Events</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the redemption (or acquisition by the General Partner) of all OP Units other than OP Units held by the General Partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)an event of withdrawal of the General Partner, as defined in the Act, other than an event of bankruptcy as defined in the Act, unless; (i) at the time of the occurrence of such event there is at least one remaining general partner of the Partnership who is hereby authorized to and does carry on the business of the Partnership; or (ii) within ninety (90) days after such event of withdrawal not less than a majority of the Percentage Interests of the remaining Partners (or such greater Percentage Interest as may be required by the Act and determined in accordance with the Act), determined, in case the withdrawing General Partner continues as a Limited Partner, by both excluding and including Limited Partner Interests continuing to be held by the withdrawing General Partner, agrees in writing to continue the business of the Partnership and to the appointment, effective as of the date of withdrawal, of a successor General Partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)an election to dissolve the Partnership made by the General Partner in its sole and absolute discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)entry of a decree of judicial dissolution of the Partnership pursuant to the provisions of the Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)the occurrence of a Terminating Capital Transaction; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)a final and non-appealable judgment is entered by a court of competent jurisdiction ruling that the General Partner is bankrupt or insolvent, or a final and non-appealable order for relief is entered by a court with appropriate jurisdiction against the General Partner, in each case under any federal or state bankruptcy or insolvency laws as now or hereafter in effect (hereinafter referred to as an "<u>Event of Bankruptcy</u>," and such term as used herein is intended and shall be deemed to supersede and replace the events of withdrawal described in Section 17-402(a)(4) and (5) of the Act), unless prior to the entry of such order or judgment a majority of the remaining Partners by Percentage Interest agree in writing to continue the business of the Partnership and to the appointment, effective as of a date prior to the date of such order or judgment, of a substitute General Partner.

Section 13.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Winding Up</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Upon the occurrence of a Liquidating Event, the Partnership shall continue solely for the purposes of winding up its affairs in an orderly manner, liquidating its assets, and satisfying the claims of its creditors and Partners. No Partner shall take any action that is inconsistent with, or not necessary to or appropriate for, the winding up of the Partnership's business and affairs. The General Partner, or, in the event there is no remaining General Partner, any Person elected by a majority of the Percentage Interests of the Limited Partners (the General

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Partner or such other Person being referred to herein as the "<u>Liquidator</u>"), shall be responsible for overseeing the winding up and dissolution of the Partnership and shall take full account of the Partnership's liabilities and property and the Partnership property shall be liquidated as promptly as is consistent with obtaining the fair value thereof, and the proceeds therefrom (which may, to the extent determined by the General Partner, include REIT Shares) shall be applied and distributed in the following order:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)First, in satisfaction of all of the Partnership's debts and liabilities to creditors other than the Partners (whether by payment or the making of reasonable provision for payment thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Second, to the payment and discharge of all of the Partnership's debts and liabilities to the General Partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Third, to the payment and discharge of all of the Partnership's debts and liabilities to the other Partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Fourth, to holders of any Preferred Units, if any, in accordance with their terms, allocated in accordance with their Capital Accounts; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)The balance, if any, to the General Partner and Limited Partners in accordance with their Capital Accounts, after giving effect to all contributions, distributions, and allocations for all periods.

The General Partner shall not receive any additional compensation for any services performed pursuant to this <u>Article 13</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Notwithstanding the provisions of <u>Section 13.2(a)</u> hereof which require liquidation of the assets of the Partnership, but subject to the order of priorities set forth therein, if prior to or upon dissolution of the Partnership the Liquidator determines that an immediate sale of part or all of the Partnership's assets would be impractical or would cause undue loss to the Partners, the Liquidator may, in its sole and absolute discretion, defer for a reasonable time the liquidation of any assets except those necessary to satisfy liabilities of the Partnership (including to those Partners as creditors) and/or distribute to the Partners, in lieu of cash, as tenants in common and in accordance with the provisions of <u>Section 13.2(a)</u> hereof, undivided interests in such Partnership assets as the Liquidator deems not suitable for liquidation. Any such distributions in kind shall be made only if, in the good faith judgment of the Liquidator, such distributions in kind are in the best interest of the Partners, and shall be subject to such conditions relating to the disposition and management of such properties as the Liquidator deems reasonable and equitable and to any agreements governing the operation of such properties at such time. The Liquidator shall determine the fair market value of any property distributed in kind using such reasonable method of valuation as it may adopt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)In the discretion of the Liquidator, a portion of the distributions that would otherwise be made to the General Partner and Limited Partners pursuant to this <u>Article 13</u> may be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)distributed to a trust established for the benefit of the General Partner and Limited Partners for the purposes of liquidating Partnership assets, collecting amounts owed to the Partnership, and paying any contingent or unforeseen liabilities or obligations of the Partnership or the General Partner arising out of or in connection with the Partnership. The assets of any such trust shall be distributed to the General Partner and Limited Partners from time to time, in the reasonable discretion of the Liquidator, in the same proportions

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as the amount distributed to such trust by the Partnership would otherwise have been distributed to the General Partner and Limited Partners pursuant to this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)withheld or escrowed to provide a reasonable reserve for Partnership liabilities (contingent or otherwise) and to reflect the unrealized portion of any installment obligations owed to the Partnership; <u>provided</u>, that such withheld or escrowed amounts shall be distributed to the General Partner and Limited Partners in the same proportions as the amount withheld or escrowed would otherwise have been distributed to the Partners under this Agreement.

The portion of any amounts otherwise distributable to the Partners that is distributed to a trust or withheld or escrowed under this <u>Section 13.2(c)</u> shall reduce the amount then distributable to each Partner in the reverse order of priority that would apply if the amount then distributable under <u>Section 13.2(a)(iv) and (v)</u> were distributed under <u>Section 5.1</u>, such that, for example, any funds that would be distributable under the most junior priority under <u>Section 5.1</u> shall be the funds first distributed to a trust or withheld or escrowed under this <u>Section 13.2(c)</u>.

Section 13.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Compliance with Timing Requirements of Regulations</u>.

In the event the Partnership is "liquidated" within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g), distributions shall be made pursuant to this <u>Article 13</u> to the General Partner and Limited Partners who have positive Capital Accounts in compliance with Regulations Section 1.704-1(b)(2)(ii)(b)(2). If any Partner has a deficit balance in his or its Capital Account (after giving effect to all contributions, distributions and allocations for all taxable years, including the year during which such liquidation occurs), such Partner shall have no obligation to make any contribution to the capital of the Partnership with respect to such deficit, and such deficit shall not be considered a debt owed to the Partnership or to any other Person for any purpose whatsoever.

Section 13.4&nbsp;&nbsp;&nbsp;&nbsp;<u>[Reserved]</u>.

Section 13.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Rights of Limited Partners</u>.

Except as otherwise provided in this Agreement, each Limited Partner shall look solely to the assets of the Partnership for the return of its Capital Contributions and shall have no right or power to demand or receive property other than cash from the Partnership. Except as otherwise provided in this Agreement, no Limited Partner shall have priority over any other Partner as to the return of its Capital Contributions, distributions, or allocations.

Section 13.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Notice of Dissolution</u>.

In the event a Liquidating Event occurs or an event occurs that would, but for the provisions of an election by one or more Partners pursuant to <u>Section 13.1</u>, result in a dissolution of the Partnership, the General Partner shall, within thirty (30) days thereafter, provide written notice thereof to each of the Partners.

Section 13.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination of Partnership and Cancellation of Certificate of Limited Partnership</u>.

Upon the completion of the winding up of the Partnership and liquidation of its assets, as provided in <u>Section 13.2</u> hereof, the Partnership shall be terminated by filing a certificate of cancellation with the Secretary of State of the State of Delaware, canceling all qualifications of the Partnership as a foreign limited partnership in jurisdictions other than the State of Delaware and taking such other actions as may be necessary to terminate the Partnership.

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Section 13.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Reasonable Time for Winding Up</u>.

A reasonable time shall be allowed for the orderly winding-up of the business and affairs of the Partnership and the liquidation of its assets pursuant to <u>Section 13.2</u> hereof, in order to minimize any losses otherwise attendant upon such winding up, and the provisions of this Agreement shall remain in effect among the Partners during the period of liquidation.

Section 13.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver of Partition</u>.

Each Partner hereby waives any right to partition of the Partnership property.

**ARTICLE 14**

**AMENDMENT OF PARTNERSHIP AGREEMENT; MEETINGS**

Section 14.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendment of Partnership Agreement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Amendments to this Agreement may be proposed by the General Partner or by Limited Partners holding twenty-five percent (25%) or more of the Common Units. Following such proposal, the General Partner shall submit any proposed amendment to the Limited Partners holding Common Units. The General Partner shall seek the written vote of the Partners on the proposed amendment or shall call a meeting to vote thereon and to transact any other business that it may deem appropriate. For purposes of obtaining a written vote, the General Partner may require a response within a reasonable specified time, but not less than fifteen (15) days, and failure to respond in such time period shall constitute a vote which is consistent with the General Partner's recommendation with respect to the proposal. Except as otherwise provided in this Agreement, a proposed amendment shall be adopted and be effective as an amendment hereto if it is approved by the General Partner and it receives the Consent of the Partners holding a majority of the Percentage Interests of the Partners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Notwithstanding <u>Section 14.1(a)</u>, the General Partner shall have the power, without the consent of the Limited Partners, to amend this Agreement as may be required to facilitate or implement any of the following purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)to add to the obligations of the General Partner or surrender any right or power granted to the General Partner or any Affiliate of the General Partner for the benefit of the Limited Partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)to reflect the admission, substitution, termination, or withdrawal of Partners in accordance with this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)to set forth the designations, rights (including redemption rights that differ from those specified in <u>Section 8.6</u>), powers, duties, and preferences of OP Units or other Partnership Interests issued pursuant to <u>Section 4.2(a)</u> hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)to reflect a change that does not adversely affect the rights of the Limited Partners hereunder in any material respect, or to cure any ambiguity, correct or supplement any provision in this Agreement not inconsistent with law or with other provisions, or make other changes with respect to matters arising under this Agreement that will not be inconsistent with law or with the provisions of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)to modify the manner in which capital accounts are computed;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)to include provisions referenced in future federal income tax guidance relating to compensatory partnership interests that the General Partner believes are reasonably necessary in respect of such guidance, including as provided in <u>Section 4.6(c)</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)to satisfy any requirements, conditions, or guidelines contained in any order, directive, opinion, ruling or regulation of a federal or state agency or contained in federal or state law.

The General Partner shall provide notice to the Limited Partners when any action under this <u>Section 14.1(b)</u> is taken.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Notwithstanding <u>Section 14.1(a)</u> and <u>14.1(b)</u> hereof, this Agreement shall not be amended without the consent of each Partner (or Assignee who is a bona fide financial institution that loans money or otherwise extends credit to a Limited Partner) whose rights hereunder are adversely affected if such amendment would (i) convert a Limited Partner's interest in the Partnership into a General Partner Interest; (ii) modify the limited liability of a Limited Partner; (iii) alter rights of such Partner to receive distributions pursuant to <u>Article 5</u> or <u>Article 13</u>, or the allocations specified in <u>Article 6</u> (except as permitted pursuant to <u>Section 4.2</u> and <u>Section 14.1(b)(iii)</u> hereof) in a manner adverse to such Partner; (iv) materially alter or modify the Redemption Right and REIT Shares Amount as set forth in <u>Section 8.6</u>, and the related definitions; (v) amend this <u>Section 14.1(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Notwithstanding <u>Section 14.1(a)</u> or <u>Section 14.1(b)</u> hereof, the General Partner shall not amend <u>Sections 4.2</u>, <u>4.3</u>, <u>7.3</u>, <u>7.5</u>, <u>7.6</u>, <u>7.8</u>, <u>8.5</u>, <u>11.2</u> or <u>14.2</u> without the Consent of the Limited Partners (excluding the Percentage Interests held directly or indirectly by STAG REIT).

Section 14.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Meetings of the Partners</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Meetings of the Partners may be called by the General Partner and shall be called upon the receipt by the General Partner of a written request by Limited Partners holding twenty percent (20%) or more of the Partnership Interests. The request shall state the nature of the business to be transacted. Notice of any such meeting shall be given to all Partners not less than seven (7) days nor more than thirty (30) days prior to the date of such meeting. Partners may vote in person or by proxy at such meeting. Whenever the vote or "Consent of the Limited Partners" is permitted or required under this Agreement, such vote or Consent may be given at a meeting of the Partners or may be given in accordance with the procedure prescribed in <u>Section 14.2(b)</u> hereof. Except as otherwise expressly provided in this Agreement, the Consent of holders of a majority of the Percentage Interests held by Limited Partners shall be deemed "Consent" and "Consent of the Limited Partners".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any action required or permitted to be taken at a meeting of the Partners may be taken without a meeting if a written consent setting forth the action so taken is signed by a majority of the Percentage Interests of the Partners (or such other percentage as is expressly required by this Agreement). Such consent may be in one instrument or in several instruments, and shall have the same force and effect as a vote of a majority of the Percentage Interests of the Partners (or such other percentage as is expressly required by this Agreement). Such consent shall be filed with the General Partner. An action so taken shall be deemed to have been taken at a meeting held on the effective date so certified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Each Limited Partner may authorize any Person or Persons to act for him by proxy on all matters in which a Limited Partner is entitled to participate, including waiving notice of any meeting, or voting or participating at a meeting. Every proxy must be signed by the Limited Partner or his or its attorney-in-fact. No proxy shall be valid after the expiration of

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eleven (11) months from the date thereof unless otherwise provided in the proxy. Every proxy shall be revocable at the pleasure of the Limited Partner executing it, such revocation to be effective upon the Partnership's receipt of written notice of such revocation from the Limited Partner executing such proxy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The General Partner may set, in advance, a record date for the purpose of determining the Partners (i) entitled to consent to any action, (ii) entitled to receive notice of or vote at any meeting of the Partners or (iii) in order to make a determination of Partners for any other proper purpose. Such date, in any case, shall not be prior to the close of business on the day the record date is fixed and shall be not more than ninety (90) days and, in the case of a meeting of the Partners, not less than five (5) days, before the date on which the meeting is to be held. If no record date is fixed, the record date for the determination of Partners entitled to notice of or to vote at a meeting of the Partners shall be at the close of business on the day on which the notice of the meeting is sent, and the record date for any other determination of Partners shall be the effective date of such Partner action, distribution or other event. When a determination of the Partners entitled to vote at any meeting of the Partners has been made as provided in this section, such determination shall apply to any adjournment thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Each meeting of the Partners shall be conducted by the General Partner or such other Person as the General Partner may appoint pursuant to such rules for the conduct of the meeting as the General Partner or such other Person deems appropriate. Without limitation, meetings of Partners may be conducted in the same manner as meetings of the stockholders of STAG REIT and may be held at the same time, and as part of, meetings of the stockholders of STAG REIT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)On matters on which Limited Partners are entitled to vote, each Limited Partner holding OP Units shall have a vote equal to the number of OP Units held.

**ARTICLE 15**

**GENERAL PROVISIONS**

Section 15.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Addresses and Notice</u>.

Any notice, demand, request or report required or permitted to be given or made to a Partner or Assignee under this Agreement shall be in writing and shall be deemed given or made when delivered in person or when sent by first class United States mail or by other means of written or electronic communication (including by telecopy, facsimile, electronic mail or commercial courier service) to such Partner or Assignee at the address set forth in <u>Exhibit A</u> or such other address of which such Partner shall notify the General Partner in writing.

Section 15.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Titles and Captions</u>.

All article or section titles or captions in this Agreement are for convenience only. They shall not be deemed part of this Agreement and in no way define, limit, extend or describe the scope or intent of any provisions hereof. Except as specifically provided otherwise, references to "Articles" and "Sections" are to Articles and Sections of this Agreement.

Section 15.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Pronouns and Plurals</u>.

Whenever the context may require, any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa.

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Section 15.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Further Action</u>.

The parties shall execute and deliver all documents, provide all information and take or refrain from taking action as may be necessary or appropriate to achieve the purposes of this Agreement.

Section 15.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Binding Effect</u>.

This Agreement shall be binding upon and inure to the benefit of the parties hereto and their heirs, executors, administrators, successors, legal representatives and permitted assigns.

Section 15.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Creditors</u>.

Other than as expressly set forth herein with respect to the Indemnitees, none of the provisions of this Agreement shall be for the benefit of, or shall be enforceable by, any creditor of the Partnership.

Section 15.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Waiver</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)No failure by any party to insist upon the strict performance of any covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy consequent upon a breach thereof shall constitute a waiver of any such breach or any other covenant, duty, agreement or condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The restrictions, conditions and other limitations on the rights and benefits of the Limited Partners contained in this Agreement, and the duties, covenants and other requirements of performance or notice by the Limited Partners, are for the benefit of the Partnership and, except for an obligation to pay money to the Partnership, may be waived or relinquished by the General Partner, in its sole and absolute discretion, on behalf of the Partnership in one or more instances from time to time and at any time; <u>provided</u>, <u>however</u>, that any such waiver or relinquishment may not be made if it would have the effect of (i) creating liability for any other Limited Partner, (ii) causing the Partnership to cease to qualify as a limited partnership, (iii) reducing the amount of cash otherwise distributable to the Limited Partners (other than any such reduction that affects all of the Limited Partners holding the same class or series of Partnership Units on a uniform or pro rata basis, if approved by a majority of the Limited Partners holding such class or series of OP Units), (iv) resulting in the classification of the Partnership as an association or publicly traded partnership taxable as a corporation or causing the Partnership to fail to qualify for a safe harbor necessary for the Partnership to avoid being treated as a publicly traded partnership taxable as a corporation or (v) violating the Securities Act, the Exchange Act or any state "blue sky" or other securities laws; and <u>provided</u>, <u>further</u>, that any waiver relating to compliance with the ownership limits or other restrictions in the Charter shall be made and shall be effective only as provided in the Charter.

Section 15.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Counterparts</u>.

This Agreement may be executed in counterparts, all of which together shall constitute one agreement binding on all of the parties hereto, notwithstanding that all such parties are not signatories to the original or the same counterpart. Each party shall become bound by this Agreement immediately upon affixing his or its signature hereto.

Section 15.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Applicable Law</u>.

This Agreement shall be construed and enforced in accordance with and governed by the laws of the State of Delaware, without regard to the principles of conflict of laws.

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Section 15.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Invalidity of Provisions</u>.

If any provision of this Agreement is or becomes invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not be affected thereby.

Section 15.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Entire Agreement</u>.

This Agreement contains the entire understanding and agreement among the Partners with respect to the subject matter hereof and supersedes the Original Agreement and any other prior written or oral understandings or agreements among them with respect thereto.

Section 15.12&nbsp;&nbsp;&nbsp;&nbsp;<u>No Rights as Stockholders of STAG REIT</u>.

Nothing contained in this Agreement shall be construed as conferring upon the holders of OP Units any rights whatsoever as stockholders of STAG REIT, including, without limitation, any right to receive dividends or other distributions made to stockholders of STAG REIT or to vote or to consent or receive notice as stockholders in respect of any meeting of the stockholders of STAG REIT for the election of directors or any other matter.

[signature page follows]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

**GENERAL PARTNER:**

STAG Industrial GP, LLC, a Delaware limited liability company

By:&nbsp;&nbsp;&nbsp;&nbsp;STAG Industrial, Inc., its member

By: &nbsp;&nbsp;&nbsp;&nbsp;<u>/s/ William R. Crooker</u>

Name:&nbsp;&nbsp;&nbsp;&nbsp;William R. Crooker

Title:&nbsp;&nbsp;&nbsp;&nbsp;President and Chief Executive Office

*Second Amended and Restated Agreement of Limited Partnership of<br>STAG Industrial Operating Partnership, L.P.*

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**<u>Exhibit A</u>**

**<u>PARTNERS' CONTRIBUTIONS AND PARTNERSHIP INTERESTS</u>**

[to be attached]

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**<u>Exhibit B</u>**

**<u>CAPITAL ACCOUNT MAINTENANCE</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>1.</u><u>Capital Accounts of the Partners</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Partnership shall maintain for each Partner a separate Capital Account in accordance with the rules of Regulations Section 1.704-1(b)(2)(iv). Such Capital Account shall be increased by (i) the amount of all Capital Contributions and any other deemed contributions made by such Partner to the Partnership pursuant to this Agreement; and (ii) all items of Partnership income and gain (including income and gain exempt from tax) computed in accordance with <u>Section 1(b)</u> herein and allocated to such Partner pursuant to <u>Section 6.1</u> of the Agreement and <u>Exhibit C</u> hereof, and decreased by (x) the amount of cash or Agreed Value of all actual and deemed distributions of cash or property made to such Partner pursuant to the Agreement, and (y) all items of Partnership deduction and loss computed in accordance with <u>Section 1(b)</u> herein and allocated to such Partner pursuant to <u>Section 6.1</u> of the Agreement and <u>Exhibit C</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)For purposes of computing the amount of any item of income, gain, deduction or loss to be reflected in the Partners' Capital Accounts, unless otherwise specified in the Agreement, the determination, recognition and classification of any such item shall be the same as its determination, recognition and classification for federal income tax purposes determined in accordance with Section 703(a) of the Code (for this purpose all items of income, gain, loss or deduction required to be stated separately pursuant to Section 703(a)(1) of the Code shall be included in taxable income or loss), with the following adjustments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Except as otherwise provided in Regulations Section 1.704-1(b)(2)(iv)(m), the computation of all items of income, gain, loss and deduction shall be made without regard to any election under Section 754 of the Code which may be made by the Partnership; <u>provided</u>, that the amounts of any adjustments to the adjusted bases of the assets of the Partnership made pursuant to Section 734 of the Code as a result of the distribution of property by the Partnership to a Partner (to the extent that such adjustments have not previously been reflected in the Partners' Capital Accounts) shall be reflected in the Capital Accounts of the Partners in the manner and subject to the limitations prescribed in Regulations Section 1.704-1(b)(2)(iv)(m)(4).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)The computation of all items of income, gain, and deduction shall be made without regard to the fact that items described in Section 705(a)(1)(B) or 705(a)(2)(B) of the Code are not includable in gross income or are neither currently deductible nor capitalized for federal income tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Any income, gain or loss attributable to the taxable disposition of any Partnership property shall be determined as if the adjusted basis of such property as of such date of disposition were equal in amount to the Partnership's Carrying Value with respect to such property as of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)In lieu of the depreciation, amortization, and other cost recovery deductions taken into account in computing such taxable income or loss, there shall be taken into account Depreciation for such fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)In the event the Carrying Value of any Partnership asset is adjusted pursuant to <u>Section 1(d)</u> herein, the amount of any such adjustment shall be taken into account as gain or loss from the disposition of such asset.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)Notwithstanding any other provision of this <u>Section 1(b)</u>, any items that are specially allocated pursuant to <u>Exhibit C</u> or <u>Section 6.1(c)</u> or <u>Section 10.5</u> of the Agreement shall not be taken into account for purposes of computing Net Income or Net Loss.

The amounts of the items of Partnership income, gain, loss or deduction available to be specially allocated pursuant to <u>Exhibit C</u> or <u>Section 6.1(c)</u> or <u>Section 10.5</u> of the Agreement shall be determined by applying rules analogous to those set forth in <u>Sections 1(b)(i)</u> through <u>1(b)(v)</u> above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Generally, a transferee (including an Assignee) of an OP Unit shall succeed to a pro rata portion of the Capital Account of the transferor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)(i)&nbsp;&nbsp;&nbsp;&nbsp;Consistent with the provisions of Regulations Section 1.704-1(b)(2)(iv)(f), and as provided in Section 1(d)(ii), the Carrying Value of all Partnership assets shall be adjusted upward or downward to reflect any Unrealized Gain or Unrealized Loss attributable to such Partnership property, as of the times of the adjustments provided in Section 1 (d)(ii), as if such Unrealized Gain or Unrealized Loss had been recognized on an actual sale of each such property and allocated pursuant to <u>Section 6.1</u> of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Such adjustments shall be made as of the following times: (A) immediately prior to the acquisition of an additional interest in the Partnership by any new or existing Partner in exchange for more than a de minimis Capital Contribution; (B) immediately prior to the distribution by the Partnership to a Partner of more than a de minimis amount of property as consideration for an interest in the Partnership; (C) in connection with the grant of an interest (including LTIP Units) in the Partnership (other than a de minimis interest), as consideration for the provision of services to or for the benefit of the Partnership by an existing Partner acting in a partner capacity or by a new partner acting in a partner capacity or in anticipation of being a partner; and (D) immediately prior to the liquidation of the Partnership within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g); <u>provided</u>, <u>however</u>, that adjustments pursuant to clauses (A), (B) and (C) above shall be made only if the General Partner determines that such adjustments are necessary or appropriate to reflect the relative economic interests of the Partners in the Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)In accordance with Regulations Section 1.704-1(b)(2)(iv)(e), the Carrying Value of Partnership assets distributed in kind shall be adjusted upward or downward to reflect any Unrealized Gain or Unrealized Loss attributable to such Partnership property, as of the time any such asset is distributed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)The Carrying Value of Partnership assets shall be increased (or decreased) to reflect any adjustments to the adjusted basis of such assets pursuant to Code Section 734(b) or Code Section 743(b), but only to the extent that such adjustments are taken into account in determining Capital Accounts pursuant to Regulations Section 1.704-1(b)(2)(iv)(m) and <u>Section 1(b)(i)</u> hereof or <u>Section 1(f)</u> of <u>Exhibit C</u>: <u>provided</u>, <u>however</u>, that Carrying Values shall not be adjusted pursuant to this Section 1(d)(iv) to the extent that an adjustment pursuant to <u>Section 1(d)(ii)</u> is required in connection with a transaction that would otherwise result in an adjustment pursuant to this <u>Section 1(d)(iv)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)In determining Unrealized Gain or Unrealized Loss for purposes of this <u>Exhibit B</u>, the aggregate cash amount and fair market value of all Partnership assets (including cash or cash equivalents) shall be determined by the General Partner using such reasonable method of valuation as it may adopt, or in the case of a liquidating distribution pursuant to <u>Article 13</u> of the Agreement, shall be determined and allocated by the Liquidator using such reasonable method of valuation as it may adopt. The General Partner, or the

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Liquidator, as the case may be, shall allocate such aggregate value among the assets of the Partnership (in such manner as it determines in its sole and absolute discretion to arrive at a fair market value for individual properties).

If the Carrying Value of an asset has been determined or adjusted pursuant to <u>Section 1(b)(ii)</u> or <u>Section 1(b)(iv)</u>, such Carrying Value shall thereafter be adjusted by the Depreciation taken into account with respect to such asset, for purposes of computing Net Income and Net Loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The provisions of the Agreement (including this <u>Exhibit B</u> and other Exhibits to the Agreement) relating to the maintenance of Capital Accounts are intended to comply with Regulations Section 1.704-1(b), and shall be interpreted and applied in a manner consistent with such Regulations. In the event the General Partner shall determine that it is prudent to modify (i) the manner in which the Capital Accounts or any debits or credits thereto (including, without limitation, debits or credits relating to liabilities which are secured by contributed or distributed property or which are assumed by the Partnership, the General Partner, or the Limited Partners) are computed; or (ii) the manner in which items are allocated among the Partners for federal income tax purposes, in order to comply with such Regulations or to comply with Section 704(c) of the Code, the General Partner may make such modification without regard to Article 14 of the Agreement; <u>provided</u>, that it is not likely to have a material effect on the amounts distributable to any Person pursuant to <u>Article 13</u> of the Agreement upon the dissolution of the Partnership. The General Partner also shall (i) make any adjustments that are necessary or appropriate to maintain equality between the Capital Accounts of the Partners and the amount of Partnership capital reflected on the Partnership's balance sheet, as computed for book purposes, in accordance with Regulations Section 1.704-1(b)(2)(iv)(q); and (ii) make any appropriate modifications in the event unanticipated events might otherwise cause the Agreement not to comply with Regulations Section 1.704-1(b). In addition, the General Partner may adopt and employ such methods and procedures for (i) the maintenance of book and tax capital accounts; (ii) the determination and allocation of adjustments under Sections 704(c), 734 and 743 of the Code; (iii) the determination of Net Income, Net Loss, taxable income, taxable loss and items thereof under the Agreement and pursuant to the Code; (iv) the adoption of reasonable conventions and methods for the valuation of assets and the determination of tax basis; (v) the allocation of asset value and tax basis; and (vi) conventions for the determination of cost recovery, depreciation and amortization deductions, as it determines in its sole discretion are necessary or appropriate to execute the provisions of the Agreement, to comply with federal and state tax laws, and are in the best interest of the Partners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>2.</u><u>No Interest</u>

No interest shall be paid by the Partnership on Capital Contributions or on balances in Partners' Capital Accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>3.</u><u>No Withdrawal</u>

No Partner shall be entitled to withdraw any part of his or its Capital Contribution or his or its Capital Account or to receive any distribution from the Partnership, except as provided in <u>Articles 4</u>, <u>5</u> and <u>13</u> of the Agreement.

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**<u>Exhibit C</u>**

**<u>SPECIAL ALLOCATION RULES</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>1.</u><u>Special Allocation Rules</u>

Notwithstanding any other provision of the Agreement or this <u>Exhibit C</u>, the following special allocations shall be made in the following order:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Minimum Gain Chargeback</u>. Notwithstanding the provisions of Section 6.1 of the Agreement or any other provisions of this <u>Exhibit C</u>, if there is a net decrease in Partnership Minimum Gain during any Partnership taxable year, then, subject to the exceptions set forth in Regulations Sections 1.704-2(f)(2)-(5), each Partner shall be specially allocated items of Partnership income and gain for such year (and, if necessary, subsequent years) in an amount equal to such Partner's share of the net decrease in Partnership Minimum Gain, as determined under Regulations Section 1.704-2(g). Allocations pursuant to the previous sentence shall be made in proportion to the respective amounts required to be allocated to each Partner pursuant thereto. The items to be so allocated shall be determined in accordance with Regulations Section 1.704-2(f)(6). This <u>Section 1(a)</u> is intended to comply with the minimum gain chargeback requirements in Regulations Section 1.704-2(f) and shall be interpreted consistently therewith. Solely for purposes of this <u>Section 1(a)</u>, each Partner's Adjusted Capital Account Deficit shall be determined prior to any other allocations pursuant to <u>Section 6.1</u> of the Agreement of Partner Minimum Gain during such Partnership taxable year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Partner Minimum Gain Chargeback</u>. Notwithstanding any other provision of Section 6.1 of the Agreement or any other provisions of this <u>Exhibit C</u> (except <u>Section 1(a)</u> hereof), if there is a net decrease in Partner Minimum Gain attributable to a Partner Nonrecourse Debt during any Partnership taxable year, then, subject to the exceptions referred to in Regulations Section 1.704-2(i)(4), each Partner who has a share of the Partner Minimum Gain attributable to such Partner Nonrecourse Debt, determined in accordance with Regulations Section 1.704-2(i)(5), shall be specially allocated items of Partnership income and gain for such year (and, if necessary, subsequent years) in an amount equal to such Partner's share of the net decrease in Partner Minimum Gain attributable to such Partner Nonrecourse Debt, determined in accordance with Regulations Section 1.704-2(i)(5). Allocations pursuant to the previous sentence shall be made in proportion to the respective amounts required to be allocated to each Partner pursuant thereto. The items to be so allocated shall be determined in accordance with Regulations Section 1.704-2(i)(4). This <u>Section 1(b)</u> is intended to comply with the minimum gain chargeback requirement in such Section of the Regulations and shall be interpreted consistently therewith. Solely for purposes of this <u>Section 1(b)</u>, each Partner's Adjusted Capital Account Deficit shall be determined prior to any other allocations pursuant to <u>Section 6.1</u> of the Agreement or this Exhibit with respect to such Partnership taxable year, other than allocations pursuant to <u>Section 1(a)</u> hereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Nonrecourse Deductions</u>. Nonrecourse Deductions for any Partnership taxable year shall be allocated to the Partners in accordance with their respective Percentage Interests. If the General Partner determines in its good faith discretion that the Partnership's Nonrecourse Deductions must be allocated in a different ratio to satisfy the safe harbor requirements of the Regulations promulgated under Section 704(b) of the Code, the General Partner is authorized, upon notice to the Limited Partners, to revise the prescribed ratio to the numerically closest ratio for such Partnership taxable year which would satisfy such requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Partner Nonrecourse Deductions</u>. Any Partner Nonrecourse Deductions for any Partnership taxable year shall be specially allocated to the Partner who bears the economic risk of loss with respect to the Partner Nonrecourse Debt to which such Partner Nonrecourse Deductions are attributable in accordance with Regulations Section 1.704-2(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)<u>Code Section 754 Adjustments</u>. To the extent an adjustment to the adjusted tax basis of any Partnership asset pursuant to Section 734(b) or 743(b) of the Code is required, pursuant to Regulations Section 1.704-1(b)(2)(iv)(m), to be taken into account in determining Capital Accounts, the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis), and such item of gain or loss shall be specially allocated to the Partners in a manner consistent with the manner in which their Capital Accounts are required to be adjusted pursuant to such Section of the Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)<u>Curative Allocations</u>. The allocations set forth in <u>Section 1(a)</u> through <u>1(f)</u> of this <u>Exhibit C</u> (the "<u>Regulatory Allocations</u>") are intended to comply with certain requirements of the Regulations under Section 704(b) of the Code. The Regulatory Allocations may not be consistent with the manner in which the Partners intend to divide Partnership distributions. Accordingly, the General Partner is hereby authorized to divide other allocations of income, gain, deduction and loss among the Partners so as to prevent the Regulatory Allocations from distorting the manner in which Partnership distributions will be divided among the Partners. In general, the Partners anticipate that, if necessary, this will be accomplished by specially allocating other items of income, gain, loss and deduction among the Partners so that the net amount of the Regulatory Allocations and such special allocations to each person is zero. However, the General Partner will have discretion to accomplish this result in any reasonable manner; <u>provided</u>, <u>however</u>, that no allocation pursuant to this <u>Section 1(g)</u> shall cause the Partnership to fail to comply with the requirements of Regulations Section 1.704-1(b)(2)(ii)(d), -2(e) or -2(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>2.</u><u>Allocations for Tax Purposes</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Except as otherwise provided in this <u>Section 2</u>, for federal income tax purposes, each item of income, gain, loss and deduction shall be allocated among the Partners in the same manner as its correlative item of "book" income, gain, loss or deduction is allocated pursuant to <u>Section 6.1</u> of the Agreement and <u>Section 1</u> of this <u>Exhibit C</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)In an attempt to eliminate Book-Tax Disparities attributable to a Contributed Property or Adjusted Property, items of income, gain, loss, and deduction shall be allocated for federal income tax purposes among the Partners as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)(A)&nbsp;&nbsp;&nbsp;&nbsp;In the case of a Contributed Property, such items attributable thereto shall be allocated among the Partners, consistent with the principles of Section 704(c) of the Code and the Regulations thereunder, and with the procedures and methods described in <u>Section 10.2</u> of the Agreement, to take into account the variation between the 704(c) Value of such property and its adjusted basis at the time of contribution; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)any item of Residual Gain or Residual Loss attributable to a Contributed Property shall be allocated among the Partners in the same manner as its correlative item of "book" gain or loss is allocated pursuant to Section 6.1 of the Agreement and <u>Section 1</u> of this <u>Exhibit C</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)(A)&nbsp;&nbsp;&nbsp;&nbsp;In the case of an Adjusted Property, such items shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I)first, be allocated among the Partners in a manner consistent with the principles of Section 704(c) of the Code and the Regulations thereunder to take into account the Unrealized Gain or Unrealized Loss attributable to such property and the allocations thereof pursuant to <u>Exhibit B</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II)second, in the event such property was originally a Contributed Property, be allocated among the Partners in a manner consistent with <u>Section 2(b)(i)</u> of this <u>Exhibit C</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)any item of Residual Gain or Residual Loss attributable to an Adjusted Property shall be allocated among the Partners in the same manner as its correlative item of "book" gain or loss is allocated pursuant to <u>Section 6.1</u> of the Agreement and <u>Section 1</u> of this <u>Exhibit C</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)To the extent that the Regulations promulgated pursuant to Section 704(c) of the Code permit the Partnership to utilize alternative methods to eliminate the disparities between the Carrying Value of property and its adjusted basis, the General Partner shall have the authority to elect the method to be used by the Partnership and such election shall be binding on all Partners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>3.</u><u>No Withdrawal</u>

No Partner shall be entitled to withdraw any part of its Capital Contribution or its Capital Account or to receive any distribution from the Partnership, except as provided in <u>Articles 4</u>, <u>5</u> and <u>13</u> of the Agreement.

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**<u>Exhibit D</u>**

**<u>NOTICE OF REDEMPTION</u>**

The undersigned Limited Partner hereby irrevocably requests STAG Industrial Operating Partnership, L.P., a Delaware limited partnership (the "<u>Partnership</u>"), to redeem ______ Common Units in the Partnership in accordance with the terms of the Second Amended and Restated Agreement of Limited Partnership of the Partnership (the "<u>Agreement</u>") and the Redemption Right referred to therein; and the undersigned Limited Partner irrevocably (i) surrenders such Common Units and all right, title and interest therein; and (ii) directs that the Cash Amount or REIT Shares Amount (as determined by the General Partner) deliverable upon exercise of the Redemption Right be delivered to the address specified below, and if REIT Shares are to be delivered, such REIT Shares be registered or placed in the name(s) and at the address(es) specified below. The undersigned hereby represents, warrants, and certifies that the undersigned (a) has marketable and unencumbered title to such Common Units, free and clear of the rights or interests of any other Person; (b) has the full right, power, and authority to request such redemption and surrender such Common Units as provided herein; and (c) has obtained the consent or approval of all Persons, if any, having the right to consent or approve such redemption and surrender of such Common Units. The undersigned Limited Partner further agrees that, in the event that any state or local property tax is payable as a result of the transfer of its Common Units to the Partnership or STAG REIT, the undersigned Limited Partner shall assume and pay such transfer tax.

All capitalized terms used herein and not otherwise defined shall have the respective meanings ascribed to them in the Agreement.

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| | |
|:---|:---|
| Dated: | |
| | (Please Print Name of Limited Partner) |
| | (Signature of Limited Partner) |
| | (Street Address) |
| | (City) (State) (Zip Code) |
| | Signature Guaranteed by: |
| If REIT Shares are to be issued, issue to: | If REIT Shares are to be issued, issue to: |
| Name: | |
| Address: | |
| Social security or identifying number: | Social security or identifying number: |

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**<u>Exhibit E</u>**

**<u>CONSTRUCTIVE OWNERSHIP DEFINITION</u>**

The term "<u>Constructively Owns</u>" means ownership determined through the application of the constructive ownership rules of Section 318 of the Code, as modified by Section 856(d)(5) of the Code. Generally, as of the date of the Agreement, these rules provide the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.an individual is considered as owning the Ownership Interest that is owned, actually or constructively, by or for his spouse, his children, his grandchildren, and his parents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.an Ownership Interest that is owned, actually or constructively, by or for a partnership, limited liability company or estate is considered as owned proportionately by its partners or beneficiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.an Ownership Interest that is owned, actually or constructively, by or for a trust is considered as owned by its beneficiaries in proportion to the actuarial interest of such beneficiaries (<u>provided</u>, <u>however</u>, that in the case of a "grantor trust" the Ownership Interest will be considered as owned by the grantors);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.if ten percent (10%) or more in value of the stock in a corporation is owned, actually or constructively, by or for any Person, such Person shall be considered as owning the Ownership Interest that is owned, actually or constructively, by or for such corporation in that proportion which the value of the stock which such Person so owns bears to the value of all the stock in such corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.an Ownership Interest that is owned, actually or constructively, by or for a partner or member which actually or constructively owns a 25% or greater capital interest or profits interest in a partnership or limited liability company, or by or to or for a beneficiary of an estate or trust shall be considered as owned by the partnership, limited liability company, estate, or trust (or, in the case of a grantor trust, the grantors);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.if ten percent (10%) or more in value of the stock in a corporation is owned, actually or constructively, by or for any Person, such corporation shall be considered as owning the Ownership Interest that is owned, actually or constructively, by or for such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.if any Person has an option to acquire an Ownership Interest (including an option to acquire an option or any one of a series of such options), such Ownership Interest shall be considered as owned by such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.an Ownership Interest that is constructively owned by a Person by reason of the application of the rules described in paragraphs (a) through (g) above shall, for purposes of applying paragraphs (a) through (g), be considered as actually owned by such Person; <u>provided</u>, <u>however</u>, that (i) an Ownership Interest constructively owned by an individual by reason of paragraph (a) shall not be considered as owned by him for purposes of again applying paragraph (a) in order to make another Person the constructive owner of such Ownership Interest; (ii) an Ownership Interest constructively owned by a partnership, estate, trust, or corporation by reason of the application of paragraphs (e) or (f) shall not be considered as owned by it for purposes of applying paragraphs (b), (c), or (d) in order to make another Person the constructive owner of such Ownership Interest; (iii) if an Ownership Interest may be considered as owned by an individual under paragraph (a) or (g), it shall be considered as owned by him under paragraph (g), and (iv) for purposes of the above described rules, an S corporation shall be treated as a partnership and any stockholder of the S corporation shall be treated as a partner of such

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partnership except that this rule shall not apply for purposes of determining whether stock in the S corporation is constructively owned by any Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.For purposes of the above summary of the constructive ownership rules, the term "<u>Ownership Interest</u>" means the ownership of stock with respect to a corporation and, with respect to any other type of entity, the ownership of an interest in either its assets or net profits.

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**<u>Exhibit F</u>**

**<u>NOTICE OF CONVERSION</u>**

The undersigned LTIP Unitholder hereby irrevocably (i) elects to convert the number of LTIP Units in STAG Industrial Operating Partnership, L.P. (the "<u>Partnership</u>") set forth below into Common Units in accordance with the terms of the Second Amended and Restated Agreement of Limited Partnership of the Partnership, as it may be amended, supplemented or restated from time to time; and (ii) directs that any cash in lieu of Common Units that may be deliverable upon such conversion be delivered to the address specified below. The undersigned hereby represents, warrants, and certifies that the undersigned (a) has title to such LTIP Units, free and clear of the rights or interests of any other person or entity other than the Partnership; (b) has the full right, power, and authority to cause the conversion of such LTIP Units as provided herein; and (c) has obtained the consent or approval of all persons or entities, if any, having the right to consent or approve such conversion.

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| | | |
|:---|:---|:---|
| Name of LTIP Unitholder: | | |
| | (Please Print Exact Name as Registered with Partnership) | (Please Print Exact Name as Registered with Partnership) |
| Number of LTIP Units to be Converted: | Number of LTIP Units to be Converted: | |
| Date of this Notice: | | |
| (Signature of Limited Partner: Sign Exact Name as Registered with Partnership) | (Signature of Limited Partner: Sign Exact Name as Registered with Partnership) | (Signature of Limited Partner: Sign Exact Name as Registered with Partnership) |
| (Street Address) | (Street Address) | (City) (State) (Zip Code) |
| Signature Guaranteed by: | | |

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**<u>Exhibit G</u>**

**<u>NOTICE OF FORCED CONVERSION</u>**

STAG Industrial Operating Partnership, L.P. (the "<u>Partnership</u>") hereby irrevocably elects to cause the number of LTIP Units held by the LTIP Unitholder set forth below to be converted into Common Units in accordance with the terms of the Second Amended and Restated Agreement of Limited Partnership of the Partnership, as it may be amended, supplemented and restated from time to time.

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| |
|:---|
| Name of LTIP Unitholder: |
| Number of LTIP Units to be Converted: |
| Date of this Notice: |

---

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**<u>Exhibit H</u><u><br>SCHEDULE OF PARTNERS' OWNERSHIP</u><u>WITH RESPECT TO TENANTS</u>**

[None.]

![image_0.jpg](image_0.jpg)

## Exhibit 21.1

**Exhibit 21.1**

**Subsidiaries of STAG Industrial, Inc., a Maryland corporation**

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| | |
|:---|:---|
| **Name** | **Jurisdiction of<br>Formation/Incorporation** |
| STAG Allentown, LLC | Delaware |
| STAG Arlington 2, L.P. | Delaware |
| STAG Belvidere 10, LLC | Delaware |
| STAG Belvidere III, LLC | Delaware |
| STAG Belvidere IV, LLC | Delaware |
| STAG Belvidere IX, LLC | Delaware |
| STAG Belvidere V, LLC | Delaware |
| STAG Belvidere VI, LLC | Delaware |
| STAG Belvidere VIII, LLC | Delaware |
| STAG Burlington 3, LLC | Delaware |
| STAG Burlington, LLC | Delaware |
| STAG CA GP, LLC | Delaware |
| STAG CA Holdings, LP | Delaware |
| STAG Columbia, LLC | Delaware |
| STAG De Pere, LLC | Delaware |
| STAG DeKalb, LLC | Delaware |
| STAG Duncan, LLC | Delaware |
| STAG Edgefield, LLC | Delaware |
| STAG El Paso 1, LP | Delaware |
| STAG El Paso 2, LP | Delaware |
| STAG El Paso 3, LP | Delaware |
| STAG El Paso 4, LP | Delaware |
| STAG El Paso 5, LP | Delaware |
| STAG El Paso, LP | Delaware |
| STAG Elizabethtown, LLC | Delaware |
| STAG Fairborn, LLC | Delaware |
| STAG Garland, LP | Delaware |
| STAG Germantown, LLC | Delaware |
| STAG GI Investments Holdings, LLC | Delaware |
| STAG GI Streetsboro, LLC | Delaware |
| STAG Gloversville 1, LLC | Delaware |
| STAG Gloversville 2, LLC | Delaware |
| STAG Gloversville 4, LLC | Delaware |
| STAG Greenwood 1, LLC | Delaware |
| STAG Greenwood 2, LLC | Delaware |
| STAG Greer, LLC | Delaware |
| STAG Gurnee 2, LLC | Delaware |
| STAG Hampstead, LLC | Delaware |
| STAG Harvard, LLC | Delaware |
| STAG Holland 3, LLC | Delaware |
| STAG Houston 14, LP | Delaware |
| STAG Houston 2, L.P. | Delaware |
| STAG Houston 4, LP | Delaware |
| STAG III Arlington, L.P. | Delaware |
| STAG III Boardman, LLC | Delaware |
| STAG III Malden, LLC | Delaware |
| STAG IND El Paso 6, LP | Delaware |
| STAG IND Houston 11, LP | Delaware |
| STAG IND Houston 9, LP | Delaware |
| STAG IND Mission, LP | Delaware |
| STAG IND Stafford, LP | Delaware |
| STAG Independence, LLC | Delaware |
| STAG Industrial GP, LLC | Delaware |
| STAG Industrial Holdings, LLC | Delaware |
| STAG Industrial Holdings II, LLC | Delaware |
| STAG Industrial Management, LLC | Delaware |

---

------

---

| | |
|:---|:---|
| **Name** | **Jurisdiction of<br>Formation/Incorporation** |
| STAG Industrial Operating Partnership, L.P. | Delaware |
| STAG Industrial TRS, LLC | Delaware |
| STAG Investments Holdings III, LLC | Delaware |
| STAG Investments Holdings IV, LLC | Delaware |
| STAG IV Seville, LLC | Delaware |
| STAG IV Waco, LP | Delaware |
| STAG Johnstown 2, LLC | Delaware |
| STAG Johnstown 3, LLC | Delaware |
| STAG Johnstown 4, LLC | Delaware |
| STAG Katy 2, LP | Delaware |
| STAG Katy, LP | Delaware |
| STAG Lafayette 1, LLC | Delaware |
| STAG Lafayette 2, LLC | Delaware |
| STAG Lafayette 3, LLC | Delaware |
| STAG Lancaster, LLC | Delaware |
| STAG Lansing 3, LLC | Delaware |
| STAG Laurens, LLC | Delaware |
| STAG Lebanon, LLC | Delaware |
| STAG Livonia 1, LLC | Delaware |
| STAG Livonia 2, LLC | Delaware |
| STAG Louisville, LLC | Delaware |
| STAG Machesney Park, LLC | Delaware |
| STAG Marion, LLC | Delaware |
| STAG McHenry 2, LP | Delaware |
| STAG Mechanicsburg 1, LLC | Delaware |
| STAG Mechanicsburg 2, LLC | Delaware |
| STAG Mechanicsburg 3, LLC | Delaware |
| STAG Montgomery, LLC | Delaware |
| STAG Mooresville 2, LP | Delaware |
| STAG NC GP 2, LLC | Delaware |
| STAG NC GP, LLC | Delaware |
| STAG NC Holdings, LP | Delaware |
| STAG New Hope, LLC | Delaware |
| STAG North Haven, LLC | Delaware |
| STAG Norton, LLC | Delaware |
| STAG Novi, LLC | Delaware |
| STAG O'Hara, LLC | Delaware |
| STAG Omaha 4, LLC | Delaware |
| STAG Omaha 5, LLC | Delaware |
| STAG Phenix City, LLC | Delaware |
| STAG Piedmont 1, LLC | Delaware |
| STAG Piedmont 2, LLC | Delaware |
| STAG Piedmont 3 LLC | Delaware |
| STAG Pineville, LLC | Delaware |
| STAG Plymouth 3, LLC | Delaware |
| STAG Portage, LLC | Delaware |
| STAG Reading, LLC | Delaware |
| STAG Rock Hill 2, LLC | Delaware |
| STAG Rockwall, LP | Delaware |
| STAG Romulus 2, LLC | Delaware |
| STAG Ronkonkoma, LLC | Delaware |
| STAG Sauk Village, LLC | Delaware |
| STAG Simpsonville, LLC | Delaware |
| STAG South Saint Paul, LLC | Delaware |
| STAG Sparks 2, LLC | Delaware |
| STAG Spartanburg 3, LLC | Delaware |
| STAG Spartanburg, LLC | Delaware |
| STAG Sterling Heights, LLC | Delaware |
| STAG Stoughton 1, LLC | Delaware |
| STAG Stoughton 2, LLC | Delaware |

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------

---

| | |
|:---|:---|
| **Name** | **Jurisdiction of<br>Formation/Incorporation** |
| STAG TX GP 2, LLC | Delaware |
| STAG TX GP, LLC | Delaware |
| STAG TX Grapevine, LP | Delaware |
| STAG TX Holdings, LP | Delaware |
| STAG West Columbia 3, LLC | Delaware |
| STAG West Houston, LP | Delaware |
| STAG Wichita 1, LLC | Delaware |
| STAG Wichita 2, LLC | Delaware |
| STAG Wichita 4, LLC | Delaware |
| STAG Woodstock, LLC | Delaware |
| STAG York, LLC | Delaware |
| STIR Investments GP III, LLC | Delaware |
| STIR Investments GP IV, LLC | Delaware |
| STIR Investments GP, LLC | Delaware |

---

## Exhibit 23.1

**Exhibit 23.1**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We hereby consent to the incorporation by reference in the Registration Statements on Form S-3 (No. 333-262791) and Form S-8 (No. 333-173599, 333-188483 and 333-224681) of STAG Industrial, Inc. of our report dated February 15, 2023 relating to the financial statements, financial statement schedule, and the effectiveness of internal control over financial reporting, which appears in this Form 10-K.

/s/ PricewaterhouseCoopers LLP

Boston, Massachusetts

February 15, 2023

## Exhibit 31.1

**Exhibit 31.1**

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

I, William R. Crooker, certify that:

1. I have reviewed this annual report on Form 10-K of STAG Industrial, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: February 15, 2023 | /s/ William R. Crooker |
| | William R. Crooker<br>*President and Chief Executive Officer* |

---

## Exhibit 31.2

**Exhibit 31.2**

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

I, Matts S. Pinard, certify that:

1. I have reviewed this annual report on Form 10-K of STAG Industrial, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: February 15, 2023 | /s/ Matts S. Pinard |
| | Matts S. Pinard<br>*Chief Financial Officer, Executive Vice President*<br>*and Treasurer* |

---

## Exhibit 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**

&nbsp;&nbsp;&nbsp;&nbsp;In connection with the Annual Report of STAG Industrial, Inc. on Form 10-K for the fiscal year ended December 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned officers of STAG Industrial, Inc., certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of STAG Industrial, Inc.

---

| | |
|:---|:---|
| Date: February 15, 2023 | /s/ William R. Crooker |
| | William R. Crooker<br>*President and Chief Executive Officer* |
| | /s/ Matts S. Pinard |
| | Matts S. Pinard<br>*Chief Financial Officer, Executive Vice President and Treasurer* |

---

<br>