STAG Industrial, Inc. 10-Q

Item 1A. Risk Factors Other than the following, there have been no material changes from the risk factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 16, 2022. 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: • 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; • 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; • 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); • technological changes, such as reconfiguration of supply chains, autonomous vehicles, drones, robotics, 3D printing, online marketplaces for industrial space, or other developments; • 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; • changes in the cost or availability of insurance, including coverage for mold or asbestos; • unanticipated changes in costs associated with known adverse environmental conditions or retained liabilities for such conditions; • periods of high interest rates and tight money supply; • 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 • 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 escalating conflict between Russia and Ukraine and the significant sanctions and other restrictive actions taken against Russia by the United States and other countries in response to Russia’s invasion of Ukraine in February 2022, as well as the cessation of all business in Russia by many global companies. As further military conflicts and economic sanctions continue to evolve, it has become increasingly difficult to predict the impact of these events or how long they will last. Depending on direction and timing, the conflict between Russia and Ukraine may significantly adversely affect economic and market conditions, the level and volatility of real estate and securities prices and the liquidity of our investments, which could impair our profitability or result in losses. 42 Table of Contents