- 98.6% quarter-end occupancy compared to prior quarter of
98.4% and prior year of 95.5%
- 99.5% quarter-end same-store occupancy compared to prior
quarter of 98.9% and prior year of 98.1%
- 45.2% increase in cash rents on new and renewed leases;
49.5% increase for the full year
- $59.4 million of acquisitions; full year 2022 acquisitions
of $414.8 million
- Sold three properties for $57.9 million; for the full year
2022 sold four properties for $168.3 million
- Issued 814,526 shares of common stock under ATM for gross
proceeds of $47.9 million; for the full year 2022 issued 1,286,125
shares of common stock under ATM for gross proceeds of $78.9
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 2022.
Operating
As of December 31, 2022, Terreno Realty Corporation owned 252
buildings aggregating approximately 15.3 million square feet and 46
improved land parcels consisting of approximately 161.4 acres. In
addition, Terreno Realty Corporation had three properties under
redevelopment that, upon completion, will consist of one building
aggregating approximately 34,000 square feet and two improved land
parcels aggregating approximately 12.1 acres:
- The operating portfolio, excluding one property under
redevelopment, was 98.6% leased at December 31, 2022 to 569 tenants
as compared to 98.4% at September 30, 2022 and 95.5% at December
31, 2021;
- The same-store portfolio of approximately 12.1 million square
feet was 99.5% leased at December 31, 2022 as compared to 98.9% at
September 30, 2022 and 98.1% at December 31, 2021;
- The improved land portfolio of 46 parcels, excluding two
parcels under redevelopment, totaling approximately 161.4 acres was
92.5% leased at December 31, 2022 as compared to 91.6% at September
30, 2022 and 94.8% at December 31, 2021. Occupancy at December 31,
2022 included acquired vacancy of 6.7 acres (approximately 430bps)
which is pre-leased and expected to commence February 1, 2023;
- Cash rents on new and renewed leases totaling approximately 0.3
million square feet and 2.6 acres of improved land commencing
during the fourth quarter increased approximately 45.2% with a
tenant retention ratio of 80.6% for the operating portfolio and
0.0% for the improved land portfolio. Cash rents on new and renewed
leases totaling approximately 2.2 million square feet and 19.1
acres of improved land commencing during the year ended December
31, 2022 increased approximately 49.5% with a tenant retention
ratio of 56.6% for the operating portfolio and 65.0% for the
improved land portfolio;
- Executed a lease renewal for 66,000 square feet in Rancho
Dominguez, California with a provider of third-party logistics in
the Southwestern U.S. and Mexico. The lease, which was to expire in
April 2023, will now expire May 2026;
- Executed a lease renewal for 63,000 square feet in Jamaica
Queens, New York with a global freight forwarding provider. The
lease, which was to expire in December 2022, will now expire
December 2027;
- Executed a lease renewal for 110,000 square feet in Commerce,
California with a provider of third-party logistics. The lease,
which was to expire in March 2023, will now expire April 2028;
and
- Executed a lease for 6.7 acres of improved land in Medley,
Florida with a North American provider of equipment rentals. The
lease will commence February 1, 2023 and expire March 2033.
Investment
During the fourth quarter of 2022, Terreno Realty Corporation
acquired four properties consisting of three buildings containing
approximately 65,000 square feet and one improved land parcel of
approximately 2.8 acres for an aggregate purchase price of
approximately $59.4 million. The fourth quarter investment activity
was as follows:
- 7045 NW 46th Street: One industrial distribution building
containing approximately 16,000 square feet on 0.7 acres located in
Miami, Florida, adjacent to Miami International Airport and the
Palmetto Expressway. The property provides two dock-high loading
positions and parking for 15 cars. The property was acquired vacant
for a purchase price of approximately $4.7 million and an estimated
stabilized cap rate of 5.2%. Subsequent to acquisition, Terreno
Realty Corporation executed a five-year lease commencing December
31, 2022 with a supplier of spa and salon equipment;
- 5401 West 104th Street: One industrial transshipment building
containing approximately 26,000 square feet on 1.8 acres located in
Los Angeles, California, west of I-405 and adjacent to Los Angeles
International Airport. The property provides 19 dock-high loading
positions and parking for 66 cars. The property was acquired 100%
leased to one tenant through September 2024 for a purchase price of
approximately $17.0 million and an estimated stabilized cap rate of
2.5%;
- 629 Henry Street: One industrial distribution building
containing approximately 23,000 square feet on 1.8 acres located in
Elizabeth, New Jersey adjacent to Newark Liberty International
Airport and Exit 13A of the New Jersey Turnpike. The property
provides two dock-high and two grade level loading positions and
parking for 37 cars. The property was acquired 100% leased on a
short-term basis for a purchase price of approximately $15.4
million and an estimated stabilized cap rate of 5.4%; and
- 14805 S. Maple Avenue: One 2.8-acre improved land parcel in
Rancho Dominguez, California, between Los Angeles International
Airport and the Ports of Los Angeles and Long Beach and adjacent to
Terreno Realty Corporation’s improved land parcels at 14725 and
14732 S. Maple Avenue. The property contains a 51,000-square-foot
building which is leased on a short-term basis through June 2023,
after which the building will be demolished and the property will
be redeveloped into a 2.8-acre improved land parcel. The property
was acquired for a purchase price of approximately $22.4 million
and the estimated stabilized cap rate of the redeveloped property
is 6.2%.
During the fourth quarter of 2022, Terreno Realty Corporation
commenced the redevelopment of 4857 W 147th Street in Hawthorne,
California. Upon completion, the property will consist of an
approximately 34,000 square foot LEED-certified industrial
distribution building, with a total expected investment of
approximately $18.1 million. The estimated stabilized cap rate of
the redeveloped property is approximately 6.1%. As of December 31,
2022, Terreno Realty Corporation had three properties under
redevelopment (245 Paterson Plank Road in Northern New Jersey,
Berryessa Road in San Francisco and 147th Street in Los Angeles)
that, upon completion, will consist of one building aggregating
approximately 34,000 square feet and two improved land parcels
aggregating approximately 12.1 acres, with a total expected
investment of approximately $69.3 million.
Terreno Realty Corporation’s acquisition activity for the full
year 2022 included 20 properties consisting of 17 buildings
containing approximately 831,000 square feet and eleven improved
land parcels of approximately 35.7 acres for an aggregate purchase
price of $414.8 million.
During the fourth quarter of 2022, Terreno Realty Corporation
sold three properties containing approximately 216,000 square feet
for an aggregate sale price of approximately $57.9 million:
- One property in Kent, Washington containing approximately
32,000 square feet on 3.8 acres for a sale price of approximately
$8.7 million. The property was acquired by Terreno Realty
Corporation in July 2014 for approximately $2.8 million. The
unleveraged internal rate of return generated by the investment was
15.6%;
- One property in Somerset, New Jersey containing approximately
86,000 square feet on 6.9 acres for a sale price of approximately
$25.0 million. The property was acquired by Terreno Realty
Corporation in September 2016 for approximately $9.1 million. The
unleveraged internal rate of return generated by the investment was
20.7%; and
- One property in Bayonne, New Jersey containing approximately
98,000 square feet on 3.6 acres for a sale price of approximately
$24.3 million. The property was acquired by Terreno Realty
Corporation in March 2014 for approximately $9.2 million. The
unleveraged internal rate of return generated by the investment was
14.1%.
For the full year 2022, Terreno Realty Corporation sold four
properties containing approximately 797,000 square feet for an
aggregate sale price of $168.3 million generating an unleveraged
internal rate of return of approximately 15.5%.
Terreno Realty Corporation has approximately $73.0 million of
acquisitions under contract and approximately $13.5 million of
acquisitions under letters of intent. There is no assurance that
Terreno Realty Corporation will acquire the properties under
contract or letters 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 2022, Terreno Realty Corporation
issued 814,526 shares of common stock with a weighted average
offering price of $58.82 per share, receiving gross proceeds of
$47.9 million under the Company’s at-the-market equity offering
program. For the full year 2022, Terreno Realty Corporation issued
1,286,125 shares of common stock with a weighted average offering
price of $61.31 per share, receiving gross proceeds of $78.9
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.
As of December 31, 2022, there were no borrowings outstanding
under Terreno Realty Corporation’s $400 million revolving credit
facility, and the Company has no debt maturities in 2023.
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 year ended December 31, 2022 on
or about February 8, 2023.
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20230109005784/en/
Terreno Realty Corporation Jaime Cannon, 415-655-4580
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