Terreno Realty Corporation Announces Quarterly Operating, Investment and Capital Markets Activity
April 11 2023 - 4:05PM
Business Wire
- 98.1% quarter-end occupancy compared to prior quarter of
98.6% and prior year of 96.9%
- 98.5% quarter-end same-store occupancy compared to prior
quarter of 98.7% and prior year of 97.3%
- 69.3% increase in cash rents on new and renewed leases and
tenant retention ratio of 54.4%
- $382.6 million of acquisitions; $62.9 million under
contract
- Completed an offering of 5,750,000 shares of common stock
for gross proceeds of $359.4 million
- Issued 350,000 shares of common stock under ATM for gross
proceeds of $22.2 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 first quarter of 2023.
Operating
As of March 31, 2023, Terreno Realty Corporation owned 257
buildings aggregating approximately 15.9 million square feet and 46
improved land parcels consisting of approximately 161.4 acres:
- The operating portfolio was 98.1% leased at March 31, 2023 to
566 tenants as compared to 98.6% at December 31, 2022 and 96.9% at
March 31, 2022;
- The same-store portfolio of approximately 13.2 million square
feet was 98.5% leased at March 31, 2023 as compared to 98.7% at
December 31, 2022 and 97.3% at March 31, 2022;
- The improved land portfolio of 46 parcels totaling
approximately 161.4 acres was 98.9% leased at March 31, 2023 as
compared to 92.5% at December 31, 2022 and 94.9% at March 31,
2022;
- Cash rents on new and renewed leases totaling approximately 0.6
million square feet and 5.6 acres of improved land commencing
during the first quarter increased approximately 69.3% with a
tenant retention ratio of 54.4% for the operating portfolio and
0.0% for the improved land portfolio;
- Executed a lease for 192,000 square feet in Northern New Jersey
with a transportation and logistics services provider. The lease
commenced April 1, 2023 and will expire November 2028. Terreno
Realty Corporation executed an early termination agreement with an
existing tenant in the 192,000 square foot space effective March
31, 2023; and
- Executed a lease for 3.5 acres of improved land in Redmond,
Washington with a North American provider of workplace
transportation services. The lease commenced March 31, 2023 and
will expire June 2033.
Investment
During the first quarter of 2023, Terreno Realty Corporation
acquired three properties consisting of five buildings containing
approximately 648,000 square feet and a 121-acre project entitled
for 2.2 million square feet of industrial distribution buildings
for an aggregate purchase price of approximately $382.6 million.
The first quarter investment activity was as follows:
- Countyline Corporate Park (“Countyline”): a 121-acre project
entitled for 2.2 million square feet of industrial distribution
buildings located in Hialeah, Florida, immediately adjacent to
Terreno Realty Corporation’s seven fully-leased buildings within
Countyline. The project, a landfill redevelopment adjacent to
Florida’s Turnpike and the southern terminus of I-75, is expected
to contain at completion in 2025 ten LEED-certified industrial
distribution buildings, two of which are under construction,
totaling approximately 2.2 million square feet providing 660
dock-high and 22 grade-level loading positions and parking for
1,875 cars for a total expected investment of approximately $491.4
million. The estimated stabilized cap rate of the two buildings
under construction is 5.0% and of the eight buildings to be built
is 6.0%;
- 42-11 9th Street: One industrial distribution building
containing approximately 45,000 square feet on 1.1 acres located in
Long Island City, Queens, New York, immediately adjacent to the
Queensboro 59th Street Bridge connecting Manhattan and Queens. The
property provides one dock-high and two grade-level loading
positions and off-street parking for 13 cars. The property was
acquired 100% leased on a short-term basis for a purchase price of
approximately $23.0 million and an estimated stabilized cap rate of
5.2%; and
- 7355-7395 Morton Avenue: Four industrial distribution buildings
containing approximately 603,000 square feet on 30.5 acres located
in Newark, California, adjacent to I-880, CA SR 84 and the
Dumbarton Bridge. The property provides 86 dock-high and eight
grade-level loading positions and parking for 730 cars. The
property was acquired 100% leased to four tenants with leases
expiring between 2026 and 2032 for a purchase price of
approximately $186.0 million and an estimated stabilized cap rate
of 4.6%.
As of March 31, 2023, Terreno Realty Corporation had four
properties under development or redevelopment that, upon
completion, will consist of 12 buildings aggregating approximately
2.3 million square feet and one 7.2-acre improved land parcel, with
a total expected investment of approximately $571.2 million:
- Countyline Corporate Park in Miami - 121-acre landfill
redevelopment project expected to contain upon completion in 2025
ten LEED-certified industrial distribution buildings for a total
expected investment of $491.4 million. Two buildings are under
construction; Building 41, a 191,000 square foot rear-load
industrial distribution building which is 78.4% pre-leased and
expected to be stabilized in the fourth quarter of 2023 and
Building 38, a 506,000 square foot cross-dock industrial
distribution building which is 100% pre-leased and expected to be
stabilized in the second quarter of 2024;
- 245 Paterson Plank Road in Northern New Jersey - 4.9-acre
improved land upon which a 48,000 square foot industrial
distribution building is expected to be built. The property is
expected to be stabilized in the fourth quarter of 2024 for a total
expected investment of $35.8 million;
- Berryessa Road in San Francisco - 7.2-acre improved land parcel
expected to be stabilized in the third quarter of 2023 for a total
expected investment of $26.0 million; and
- 147th Street in Los Angeles - 34,000 square foot industrial
distribution building expected to be stabilized in the third
quarter of 2024 for a total expected investment of $18.1
million.
Terreno Realty Corporation has approximately $62.9 million of
acquisitions under contract. Terreno Realty Corporation has one
property under contract for sale for approximately $25.5 million
containing approximately 127,000 square feet. There is no assurance
that Terreno Realty Corporation will acquire or dispose of the
properties under contract because the proposed acquisitions and
dispositions are subject to the completion of satisfactory due
diligence and closing conditions.
Capital Markets
During the first quarter of 2023, Terreno Realty Corporation
closed an offering of 5,750,000 shares of its common stock at a
price to the public of $62.50 per share, receiving gross proceeds
of $359.4 million. The Company intends to use the net proceeds from
the offering for acquisitions, redevelopments and for general
corporate purposes.
In addition, Terreno Realty Corporation issued 350,000 shares of
common stock with a weighted average offering price of $63.30 per
share under the Company’s at-the-market equity offering program,
receiving gross proceeds of $22.2 million. Terreno Realty
Corporation did not repurchase any shares of common stock pursuant
to the Company’s share repurchase authorization.
As of March 31, 2023, 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
quarterly report on Form 10-Q for the period ended March 31, 2023
on or about May 3, 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, 2022 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/20230411005860/en/
Terreno Realty Corporation Jaime Cannon, 415-655-4580
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