- 97.8% quarter-end occupancy compared to prior quarter of
97.3% and prior year of 96.8%
- 98.0% quarter-end same-store occupancy compared to prior
quarter of 98.5% and prior year of 97.8%
- 10.9% increase in cash rents on new and renewed leases;
22.1% increase for the full year
- Executed three renewals totaling 527,000 square feet
previously expiring in 2021
- Executed a five-year lease stabilizing a recently acquired
2.5-acre improved land parcel
- $50.5 million of acquisitions during the fourth quarter;
full year 2020 acquisitions of $96.7 million
Terreno Realty Corporation (NYSE:TRNO), an acquirer,
owner and operator of industrial real estate in six major coastal
U.S. markets, announced today its operating, investment and capital
markets activity for the fourth quarter of 2020.
Operating
As of December 31, 2020, Terreno Realty Corporation owned 222
buildings aggregating approximately 13.2 million square feet and 25
improved land parcels consisting of approximately 91.5 acres. In
addition, Terreno Realty Corporation had one property under
redevelopment that upon completion will contain approximately
234,000 square feet:
- The operating portfolio, excluding one property under
redevelopment, was 97.8% leased at December 31, 2020 to 488 tenants
as compared to 97.3% at September 30, 2020 and 96.8% at December
31, 2019;
- The same-store portfolio of approximately 12.0 million square
feet was 98.0% leased at December 31, 2020 as compared to 98.5% at
September 30, 2020 and 97.8% at December 31, 2019;
- The improved land portfolio of 25 parcels totaling
approximately 91.5 acres was 98.6% leased at December 31, 2020 as
compared to 98.5% at September 30, 2020 and 92.0% at December 31,
2019;
- Cash rents on new and renewed leases totaling approximately 0.6
million square feet commencing during the fourth quarter increased
approximately 10.9% with a tenant retention ratio of 64.3%. Cash
rents on new and renewed leases totaling 2.6 million square feet
commencing during the full year 2020 increased approximately 22.1%
with a tenant retention ratio of 57.7%;
- Executed three renewals totaling 527,000 square feet previously
scheduled to expire in 2021. These renewals include a seven-year
extension for 221,000 square feet with a transportation and
logistics services provider in South Brunswick, New Jersey, now
expiring November 30, 2028, a five-year extension for 203,000
square feet with a third-party logistics provider in Commerce,
California, now expiring June 30, 2026, and a five-year extension
for 103,000 square feet with a leading aerospace manufacturer in
Redondo Beach, California, now expiring December 31, 2025; and
- Executed a lease with a regional provider of trucking services
stabilizing a recently acquired 2.5-acre improved land parcel in
Rancho Dominguez, California with a December 31, 2020 commencement
date and February 28, 2026 expiration date.
Investment
During the fourth quarter of 2020, Terreno Realty Corporation
acquired six industrial properties consisting of three buildings
containing approximately 63,000 square feet and three improved land
parcels containing approximately 6.5 acres for an aggregate
purchase price of approximately $50.5 million. The fourth quarter
investment activity was as follows:
- 8331 Aviation Boulevard: One 1.9-acre improved land parcel
adjacent to Los Angeles International Airport and west of I-405 in
Inglewood, California. The property was acquired vacant for a
purchase price of approximately $10.0 million and estimated
stabilized cap rate of 5.7%;
- 2425 Porter Street: One 13,000 square foot industrial
distribution building on 0.8 acres in Los Angeles, California. The
property is adjacent to I-10 in downtown Los Angeles, provides
seven dock-high loading positions and parking for 64 cars. The
property was acquired 100% leased to a single tenant for a purchase
price of approximately $4.4 million and estimated stabilized cap
rate of 4.5%;
- 13150 SE 32nd Street: One 39,000 square foot industrial flex
building on 2.1 acres in Bellevue, Washington. The property is
adjacent to the intersection of I-90 and I-405, provides one
dock-high loading position and parking for 80 cars. The property
was acquired 100% leased to one tenant for a purchase price of
approximately $11.7 million and estimated stabilized cap rate of
4.9%;
- 14732 S. Maple Avenue: One 2.5-acre improved land parcel
located between Los Angeles International Airport and the Ports of
Los Angeles and Long Beach in Rancho Dominguez, California. The
property was acquired vacant for approximately $9.8 million and
estimated stabilized cap rate of 5.7%;
- 12119 East Marginal Way S: One 2.1-acre improved land parcel
adjacent to State Routes 99 and 599 and I-5 in Tukwila, Washington.
The property was acquired 100% leased to one tenant for a purchase
price of approximately $6.6 million and estimated stabilized cap
rate of 4.6%; and
- 12 McLaren: One 11,000 square foot transshipment building on
2.1 acres in Irvine, California. The property is adjacent to the
intersection of Interstates 5 and 405, provides 14 dock-high and
two grade-level loading positions and parking for 151 cars. The
property was acquired 100% lease to one tenant for a purchase price
of approximately $8.0 million and estimated stabilized cap rate of
4.0%.
Terreno Realty Corporation’s acquisition activity for the full
year 2020 included 11 industrial properties consisting of six
buildings containing approximately 164,000 square feet and five
improved land parcels totaling approximately 12.0 acres for an
aggregate purchase price of approximately $96.7 million.
As of December 31, 2020, Terreno Realty Corporation had one
property under redevelopment (SoDo Row in Seattle) that upon
completion will contain approximately 234,000 square feet with a
total expected investment of approximately $64 million.
For the full year 2020, Terreno Realty Corporation sold four
properties totaling 532,000 square feet for an aggregate sale price
of $73.4 million generating an unleveraged internal rate of return
of approximately 9.3%.
Terreno Realty Corporation has approximately $67.8 million of
acquisitions under contract containing approximately 266,000 square
feet and 5.8 acres of improved land, and approximately $18.0
million of acquisitions under letter of intent containing
approximately 67,000 square feet and 2.2 acres of improved land.
There is no assurance that Terreno Realty Corporation will acquire
properties under contract or letter of intent because the proposed
acquisitions are subject to the completion of satisfactory due
diligence, closing conditions and, in the case of letters of
intent, contracts.
Capital Markets
During the fourth quarter of 2020, Terreno Realty Corporation
issued 143,020 shares of common stock with a weighted average
offering price of $61.39 per share, receiving gross proceeds of
$8.8 million under the Company’s at-the-market equity offering
program. For the full year 2020, Terreno Realty Corporation issued
1,197,597 shares of common stock with a weighted average offering
price of $54.08 per share, receiving gross proceeds of $64.8
million under the Company’s at-the-market equity offering program.
Terreno Realty Corporation did not repurchase any shares of common
stock pursuant to the Company’s share repurchase authorization.
Subsequent to December 31, 2020, the Company paid off its last
secured mortgage loan with an $11.2 million balance and 5.49%
interest rate and all outstanding debt is now unsecured. The
Company has a cash balance of approximately $83 million, no balance
outstanding on its $250 million revolving credit facility, and no
2021 debt maturities.
Additional information is available on the Company’s website at
www.terreno.com. Terreno Realty Corporation expects to file its
annual report on Form 10-K for the period ended December 31, 2020
on or about February 10, 2021.
Terreno Realty Corporation acquires, owns and operates
industrial real estate in six major coastal U.S. markets: Los
Angeles, Northern New Jersey/New York City, San Francisco Bay Area,
Seattle, Miami, and Washington, D.C.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. We caution investors
that forward-looking statements are based on management’s beliefs
and on assumptions made by, and information currently available to,
management. When used, the words “anticipate,” “believe,”
“estimate,” “expect,” “intend,” “may,” “might,” “plan,” “project,”
“result,” “should,” “will,” “seek,” “target,” “see,” “likely,”
“position,” “opportunity,” “outlook,” and similar expressions which
do not relate solely to historical matters are intended to identify
forward-looking statements. These statements are subject to risks,
uncertainties, and assumptions and are not guarantees of future
performance, which may be affected by known and unknown risks,
trends, uncertainties, and factors that are beyond our control,
including risks related to our ability to meet our estimated
forecasts related to stabilized cap rates, the impact of the
COVID-19 pandemic on our business, our tenants and the national and
local economies, and those risk factors contained in our Annual
Report on Form 10-K for the year ended December 31, 2019 and our
other public filings. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those
anticipated, estimated, or projected. We expressly disclaim any
responsibility to update our forward-looking statements, whether as
a result of new information, future events, or otherwise, except as
required by law. Accordingly, investors should use caution in
relying on past forward-looking statements, which are based on
results and trends at the time they are made, to anticipate future
results or trends.
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version on businesswire.com: https://www.businesswire.com/news/home/20210107005811/en/
Terreno Realty Corporation Jaime Cannon, 415-655-4580
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