About Michael Chase
In a September 2017 interview, Michael Chase, then Executive Vice President and Chief Investment Officer of STAG Industrial, discussed the company's acquisition strategy. Chase stated that with an improving cost of capital and plentiful opportunities, he expected the company's acquisition pace to accelerate. He noted that STAG targeted buying between $200 and $250 million, or about 25 properties, in the second quarter of that year. Regarding asset sales, Chase said the company is "always looking to sell assets where someone else thinks the asset's worth more than we do," but added that STAG is "not a very active seller."
Chase also addressed the company's funds from operations (FFO), which rose five percent in the quarter. He attributed the increase to the cost of capital, the accretive nature of acquisitions, and operating leverage. He described an advantage in deploying assets through the company's people and processes to "creatively acquire assets."
Source: AI-verified profile updated from Michael Chase's recent appearances.
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Transcript (11 segments)
M
Matt Bashar Whitney0:08
I'm Matt Bashar Whitney right here at the New York Hilton for REIT Week 2017. Joining me today is Ben Butcher, the Chairman, President, and CEO of STAG Industrial. Thanks so much for joining us.
B
Ben Butcher0:20
My pleasure. Nice to be here.
M
Matt Bashar Whitney0:21
Now in the first quarter this year, STAG acquired 11 properties. Is that the type of pace we should expect the company to keep up?
B
Ben Butcher0:29
Well, it's interesting. With the cost of capital improving and with the opportunities pretty plentiful out there, I think we actually may accelerate. We targeted in the second quarter buying between 200 and 250 million, something in the order of 25 properties in the second quarter. So I think you'll see the pace accelerate.
M
Matt Bashar Whitney0:44
And what about on the other side? Should we look for some portfolio pruning in the near future?
B
Ben Butcher0:48
We're always looking to sell assets where someone else thinks the asset's worth more than we do in our portfolio. Having said that, we're not a very active seller.
M
Matt Bashar Whitney0:57
And STAG's FFO was up 5% in the quarter. What was driving that?
B
Ben Butcher1:02
Well, it's partially cost of capital and the accretive nature of our acquisitions. That's due in some part to our operating leverage. We have quite an advantage in terms of deploying the assets, the people, the processes that we have in place to accretively acquire assets. So it's, I'd say, some internal efficiency and just good relative value buying.
M
Matt Bashar Whitney1:24
Great, Ben. Thanks so much for joining us.
B
Ben Butcher1:26
Thank you.
M
Matt Bashar Whitney1:27
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