DEAR FELLOW STOCKHOLDERS STAG  GLYPH<two.lin> . GLYPH<zero.lin> THE PAST YEAR HEARTFELT THANKS OUR PROMISE STRENGTH IN  FUNDAMENTALS OUR STRATEGY Sincerely, Benjamin S. Butcher CEO GLYPH<two.lin> Although I am a big fan of architecture as an  art form, the fundamental beauty of real estate,  from an investment standpoint, is its ability to  produce predictable cash flows. We believe that  virtually all of the parameters that will affect the  cash flows to be derived from owning an asset  are subject to analysis and projection … that the  all too common use of ‘decision rules’ has no  place in real estate investment decisions. We have developed (and continue to refine) a proprietary risk-assessment model that allows us to evaluate/project the cash flows expected  from an asset on a RE risk and credit neutral basis. This allows us to identify, evaluate, triage  and acquire assets that we believe will deliver  above average, long term returns …. delivering  not just growth but accretive growth to our  shareholders.  Tenant demand for industrial space is, and has  been strong due to a combination of both GDP  growth and a ‘catching up’ from the demand  dormancy that existed during the global financial  crisis and its aftermath. On a macro basis, the  past two years have seen extremely strong national net absorption of industrial space (on the order of 200 to 250 million square feet  per year) – well above long term averages. New supply has been a fraction of that amount.  This supply/demand imbalance has led to continued declines in vacancy and to increasing  market rental rates. We expect that these net  absorption numbers will taper somewhat as the  world ‘normalizes’ post the global financial crisis  We at STAG will continue to execute our investment strategy and maintain our pricing/ return discipline as we continue to accretively  grow our portfolio. We are committed to maintaining our impeccable reputation for  integrity and good corporate governance. In the practice of real estate acquisition and management, cash flow is what matters. Our promise to you, our fellow shareholders,  is to maintain our focus on delivering the best,  risk-adjusted cash flow returns available. First, the STAG team of bright, curious and  energetic individuals is second to none in their  execution of our investment strategy and operational mandates. Second, we have a  supportive and knowledgeable Board that understands the significant opportunities available to our Company and empowers us  to take full advantage of those opportunities.  Third, our differentiated investment strategy  allows us to operate broadly across the industrial  landscape to acquire assets that we believe offer  “above market” long term returns – the elusive  ‘alpha’ of investing. 2014 was another very successful year for our  Company. There were solid achievements in  all facets of our business – both external and  internal. Our accretive acquisition targets were  met or exceeded, our internal growth metrics  (tenant retention and positive leasing spreads)  were above expectations and our capital markets  efforts continued to drive our overall cost of  capital lower. I believe that the fundamental  reasons for our success can be traced to some  pretty simple realities. By almost any measurement standard, our nearly  four years as a public company have been a great  success. The tendency might be for us to rest on  our laurels, or perhaps to try and conform more  generally to ‘mainstream’ REIT practices. Instead,  STAG 2.0 is, and will be, a continuation and ampli- fication of what has brought us success thus far. With the support of our Board, we have committed to building on and improving the  “STAG machine.” This is evidenced by increased  headcount in our outward facing positions  (acquisitions and asset management), increased  investment in internal support functions (people,  systems and processes) and a focus on being  ready to capture the opportunities that we are  certain will present themselves in the coming  years. We expect that the inherent scalability  of our business model will allow us to leverage  this marginal cost to maintain or enhance our  accretive growth rates. One of the big focuses for 2015 at STAG will  be improving our use of data to better identify  opportunities and more confidently predict outcomes from investment and leasing decisions. On a relative basis, we believe that we are already one of the more sophisticated  users of data in the REIT world – utilizing both  internal and external data sources. Our 2015 data initiative is intended to extend that  advantage through improved accessibility to  data across the organization, increased flexibility  in utilization of existing data and the melding of  multiple data sources. On behalf of the Company and my fellow Board  members, I would like to thank Kathryn Arnone,  who resigned in December, for her many years of devoted service to the Company as our General Counsel. Her wisdom, wit and wealth  of knowledge were essential elements of our  growth and success both as a private and public company. The low vacancy levels have led (and should  continue to lead) to above normal market rental  rate increases – a combination of reversion to  long term rental trends (following the global  financial crisis) and, in some (mostly primary)  markets, the pendulum swinging beyond long  term trends. We expect that the supply/demand  imbalance will persist longer in secondary  markets (where the majority of our assets are  located) than in primary markets (where new  supply is focused). We expect that this period  of heightened rental rate increases will persist  for a number of years and will benefit all of the  industrial operating REITs (like STAG) with their  laddered lease maturity schedules. but do not expect excess supply to be a significant issue in this cycle. There are many  markets (Los Angeles is frequently cited) where  vacancy has dropped to levels where it may be  difficult for those markets to function efficiently.