- 98.4% quarter-end occupancy compared to prior quarter of
97.9% and prior year of 98.0%
- 98.9% quarter-end same-store occupancy compared to prior
quarter of 98.0% and prior year of 98.6%
- 65.9% increase in cash rents on new and renewed leases;
50.3% increase year-to-date
- Completed redevelopment and achieved LEED certification at
3000 NW 73rd Street; estimated stabilized cap rate is 8.1%
- $65.9 million of acquisitions; $355.4 million
year-to-date
- Closed $100 Million Five-Year Unsecured Term Loan
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 third quarter of 2022.
Operating
As of September 30, 2022, Terreno Realty Corporation owned 252
buildings aggregating approximately 15.4 million square feet and 46
improved land parcels consisting of approximately 159.9 acres. In
addition, Terreno Realty Corporation had two properties under
redevelopment that, upon completion, will consist of two improved
land parcels aggregating approximately 12.1 acres:
- The operating portfolio was 98.4% leased at September 30, 2022
to 575 tenants as compared to 97.9% at June 30, 2022 and 98.0% at
September 30, 2021;
- The same-store portfolio of approximately 12.2 million square
feet was 98.9% leased at September 30, 2022 as compared to 98.0% at
June 30, 2022 and 98.6% at September 30, 2021;
- The improved land portfolio of 46 parcels, excluding two
parcels under redevelopment, totaling approximately 159.9 acres was
91.6% leased at September 30, 2022 as compared to 97.0% at June 30,
2022 and 96.1% at September 30, 2021. Occupancy at September 30,
2022 included acquired vacancy of 6.7 acres (approximately
430bps);
- Cash rents on new and renewed leases totaling approximately 0.7
million square feet and 5.1 acres of improved land commencing
during the third quarter increased approximately 65.9% with a
tenant retention ratio of 76.2% for the operating portfolio and
53.3% for the improved land portfolio. Cash rents on new and
renewed leases totaling approximately 1.9 million square feet and
16.5 acres of improved land commencing during the nine months ended
September 30, 2022 increased approximately 50.3% with a tenant
retention ratio of 51.4% for the operating portfolio and 74.2% for
the improved land portfolio;
- Completed the redevelopment of 3000 NW 73rd Street in Miami,
Florida. The redeveloped property, originally scheduled to be
stabilized in the fourth quarter of 2022, consists of two newly
developed 32’ clear height industrial distribution buildings
containing 129,000 square feet which have achieved LEED
certification. The buildings provide 36 dock-high loading positions
and parking for 104 cars approximately three miles from Miami
International Airport and six miles from both PortMiami and
Downtown Miami. The total expected investment is approximately
$20.2 million. The property is 92% leased to 11 tenants with leases
expiring between 2025 and 2027 and the estimated stabilized cap
rate of the redeveloped property is approximately 8.1%;
- Completed the redevelopment of 4341 West 108th Street in
Hialeah, Florida. The redeveloped property consists of one newly
developed 32’ clear height industrial distribution building
containing 205,000 square feet which is expected to obtain LEED
certification. The property is immediately adjacent to Terreno
Realty Corporation’s six existing buildings on West 108th Street
and adjacent to Florida’s Turnpike and the southern terminus of
I-75. The total expected investment is approximately $37.9 million.
The property is 100% leased to one tenant and the estimated
stabilized cap rate of the redeveloped property is approximately
3.8%;
- Pre-leased an approximately 31,000 square foot transshipment
facility on 6.0 acres in Elizabeth, New Jersey with a nationwide
operator of container freight stations. The lease will commence
subsequent to the January 2023 expiration of the current lease and
expire October 2027;
- Executed an early lease renewal, assignment, and expansion in
Jamaica, Queens, New York with a global logistics provider totaling
86,000 square feet. The early lease renewal of 44,000 square feet,
which was to expire in February 2023, will now expire April 2030.
The five expansion spaces totaling 23,000 square feet, which are
vacant currently, will expire April 2030. The assignment of an
existing 18,000 square foot lease at the property will expire April
2030; and
- Executed leases totaling 43,000 square feet in East
Williamsburg, Brooklyn, New York with a provider of expedited urban
delivery. Two leases, for space which will become vacant on January
31, 2023, will commence on March 1, 2023 and will expire April
2028. Further an existing lease, scheduled to expire January 31,
2023, will be extended and now expire April 2028.
Investment
During the third quarter of 2022, Terreno Realty Corporation
acquired four properties consisting of four improved land parcels
of approximately 12.2 acres for an aggregate purchase price of
approximately $65.9 million. The third quarter investment activity
was as follows:
- 8050 NW 90th Street: One 6.7-acre improved land parcel in
Medley, Florida, adjacent to the intersection of the Palmetto
Expressway and West Okeechobee Road. The property was acquired
vacant for a purchase price of approximately $20.0 million and an
estimated stabilized cap rate of 5.6%;
- 4857 W 147th Street: One 1.3-acre improved land parcel in
Hawthorne, California, adjacent to I-405 approximately four miles
south of Los Angeles International Airport. The property was
acquired 100% leased on a short-term basis through December 2022
for a purchase price of approximately $6.5 million and is expected
to be redeveloped with the construction of an approximately 33,000
square foot LEED-certified industrial distribution building. The
estimated stabilized cap rate of the redeveloped property is 5.0%
and the total expected investment is approximately $15.8
million;
- 19500 South Alameda Street: One 3.0-acre improved land parcel
in Rancho Dominguez, California, south of the Gardena Freeway (SR
91) and west of the Long Beach Freeway (I-710). The property was
acquired 100% leased to two tenants on a short-term basis for a
purchase price of approximately $32.1 million and an estimated
stabilized cap rate of 5.5%; and
- 3091 East Coronado Street: One 1.2-acre improved land parcel in
Anaheim, California, adjacent to the intersection of CA SR 91 (The
Riverside Freeway) and CA SR 57 (The Orange Freeway). The property
was acquired vacant for a purchase price of approximately $7.3
million. Terreno Realty Corporation executed a lease for the
property commencing on the date of acquisition and ending December
2027 with a Southern California investment group facilitating
commissary services, resulting in an estimated stabilized cap rate
of 5.0%.
As of September 30, 2022, Terreno Realty Corporation had two
properties under redevelopment (245 Paterson Plank Road in Northern
New Jersey and Berryessa Road in San Francisco) that, upon
completion, will consist of two improved land parcels aggregating
approximately 12.1 acres, with a total expected investment of
approximately $51.3 million.
Year-to-date, Terreno Realty Corporation acquired 16 properties
consisting of 14 buildings containing approximately 766,000 square
feet and ten improved land parcels of approximately 32.9 acres for
an aggregate purchase price of $355.4 million.
Terreno Realty Corporation has approximately $37.7 million of
acquisitions under contract and approximately $65.1 million of
acquisitions under letters of intent. Terreno Realty Corporation
has three properties under contract for sale for approximately
$59.4 million aggregating approximately 217,000 square feet. There
is no assurance that Terreno Realty Corporation will acquire or
dispose of the properties under contract or letters of intent
because the proposed acquisitions and dispositions are subject to
the completion of satisfactory due diligence, closing conditions
and, in the case of letters of intent, contracts.
Capital Markets
During the third quarter of 2022, Terreno Realty Corporation
issued 444,512 shares of common stock with a weighted average
offering price of $64.97 per share, receiving gross proceeds of
$28.9 million under the Company’s at-the-market equity offering
program. Year-to-date through September 30, 2022, Terreno Realty
Corporation has issued 471,599 shares of common stock with a
weighted average offering price of $65.61 per share, receiving
gross proceeds of $30.9 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.
During the third quarter of 2022, Terreno Realty Corporation
issued a new $100 million five-year unsecured term loan. The new
five-year unsecured term loan will mature on January 15, 2028, and
the interest rate generally will be SOFR plus 1.25% to 1.75%,
depending on leverage. The current interest rate is SOFR plus
1.25%, and proceeds from the term loan were used to reduce
borrowings under Terreno Realty Corporation’s $400 million
revolving credit facility. Further, on August 1, 2022, the Company
prepaid $50 million of senior unsecured notes which bore interest
at 4.23% and had an original maturity date of September 1, 2022.
The Company has no remaining debt maturities in 2022 or 2023.
Additional information is available on the Company’s website at
www.terreno.com. Terreno Realty Corporation expects to file its
quarterly report on Form 10-Q for the period ended September 30,
2022 on or about November 2, 2022.
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, 2021 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221006005943/en/
Terreno Realty Corporation Jaime Cannon, 415-655-4580
Terreno Realty (NYSE:TRNO)
Historical Stock Chart
From Jun 2024 to Jul 2024
Terreno Realty (NYSE:TRNO)
Historical Stock Chart
From Jul 2023 to Jul 2024