Terreno Realty Corporation Announces Quarterly Operating, Investment and Capital Markets Activity
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 2019.
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 2019.
Operating
As of March 31, 2019, Terreno Realty Corporation owned 207 buildings
aggregating approximately 12.9 million square feet and 18 improved land
parcels consisting of 74.9 acres. In addition, Terreno Realty
Corporation had four properties under redevelopment that upon completion
will contain approximately 612,000 square feet with a total expected
investment of $126.1 million, including redevelopment costs, leasing
costs, and capitalized interest of approximately $48.1 million:
-
The operating portfolio, excluding four properties under
redevelopment, was 98.1% leased at March 31, 2019 to 470 tenants as
compared to 98.4% at December 31, 2018 and 97.0% at March 31, 2018; -
The same store portfolio of approximately 12.0 million square feet was
99.0% leased at March 31, 2019 as compared to 99.1% at December 31,
2018 and 96.7% at March 31, 2018; -
The improved land portfolio of 18 parcels totaling approximately 74.9
acres was 86.6% leased at March 31, 2019 as compared to 76.5% at
December 31, 2018 and 78.0% at March 31, 2018; -
Cash rents on new and renewed leases totaling approximately 1.0
million square feet commencing during the first quarter increased
approximately 14.5%; and -
Executed a full-building 5-year lease stabilizing a 65,000 square foot
redevelopment property in Miami, Florida. The total expected
investment cost was approximately $10.0 million with an estimated
stabilized cap rate of 5.5%.
Investment
During the first quarter of 2019, Terreno Realty Corporation acquired
three industrial properties consisting of two buildings containing
approximately 46,000 square feet and two improved land parcels totaling
approximately 19.7 acres for an aggregate purchase price of
approximately $63.1 million. The first quarter investment activity was
as follows:
-
56-85 49th Street: One transshipment building containing
approximately 18,000 square feet on 2.0 acres adjacent to the
intersection of the Brooklyn Queens Expressway and the Long Island
Expressway in Maspeth Queens, New York. The property provides 36
dock-high loading positions, parking for 22 trailers, and is 100%
leased to one tenant on a short-term basis. The purchase price was
approximately $24.0 million with an estimated stabilized cap rate of
5.3%; -
81 North Hackensack: One improved land parcel of approximately 16.8
acres adjacent to Exit 15E of the New Jersey Turnpike, U.S. Routes 1
and 9, and the Pulaski Skyway in Kearny, New Jersey. The property was
purchased for approximately $25.0 million and is 100% leased to one
tenant with an estimated stabilized cap rate of 5.3%. The property was
acquired as partial repayment of the $55 million senior secured loan
that Terreno Realty Corporation made in 2018; and -
48 3rd Street and 286 Central Avenue: One 28,000 square
foot transshipment building on approximately 4.6 acres and one
improved land parcel aggregating approximately 2.9 acres in Kearny,
New Jersey. The property was purchased for approximately $14.1 million
and is 100% leased to three tenants with an estimated stabilized cap
rate of 5.4%. The property was acquired as partial repayment of the
$55 million senior secured loan that Terreno Realty Corporation made
in 2018, reducing the loan balance to approximately $16 million.
During the first quarter of 2019, Terreno Realty Corporation sold one
90,000 square foot industrial distribution building in Corona,
California for approximately $12.4 million generating an unleveraged
internal rate of return of approximately 12.4%. The property was
purchased in 2014 for approximately $7.8 million, and was 100% leased to
one tenant at disposition.
Terreno Realty Corporation has an approximately $4.3 million acquisition
under contract comprising approximately 2.0 acres of improved land, and
approximately $128.3 million of acquisitions under letter of intent
comprising approximately 313,000 square feet. There is no assurance that
Terreno Realty Corporation will acquire the 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 first quarter of 2019, Terreno Realty Corporation issued
1,988,801 shares of common stock with a weighted average offering price
of $41.39 per share, receiving gross proceeds of $82.3 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.
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, 2019 on or about May 1, 2019.
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 and those risk factors
contained in our Annual Report on Form 10-K for the year ended December
31, 2018 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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