Terreno Realty Corporation Announces Quarterly Operating, Investment and Capital Markets Activity

Company Release –

  • 97.4% quarter end occupancy compared to prior quarter of 97.4% and prior year of 90.7%
  • 99.0% quarter end same store occupancy compared to prior quarter of 98.9% and prior year of 90.4%
  • 15.4% increase in cash rents on new and renewed leases for the quarter
  • $14.9 million of acquisitions comprising approximately 91,000 square feet
  • 2,047,000 shares issued for gross proceeds of $56.0 million at a weighted average price per share of $27.36

SAN FRANCISCO--()--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 2017.

Operations

As of March 31, 2017, Terreno Realty Corporation owned 168 buildings aggregating approximately 12.1 million square feet and five improved land parcels consisting of 22.8 acres. Key operating measures for the portfolio were as follows:

  • The total portfolio was 97.4% leased to 388 tenants as compared to 97.4% at December 31, 2016 and 90.7% at March 31, 2016;
  • The same store portfolio of approximately 10.7 million square feet was 99.0% leased at March 31, 2017 as compared to 98.9% at December 31, 2016 and 90.4% at March 31, 2016; and
  • Cash rents on new and renewed leases totaling approximately 0.5 million square feet commencing during the first quarter increased approximately 15.4%.

Investment

During the first quarter of 2017, Terreno Realty Corporation acquired two industrial properties consisting of two buildings containing approximately 91,000 square feet on approximately 4.1 acres for an aggregate purchase price of approximately $14.9 million. The first quarter investment activity was as follows:

  • Lucile: One industrial distribution building totaling approximately 45,000 square feet on approximately 1.5 acres in Seattle, Washington adjacent to Seattle’s Port and SoDo district. This property provides fourteen dock-high and two grade level loading positions and was 100% leased to one tenant on a short-term basis at acquisition. The purchase price was approximately $7.8 million with an estimated stabilized cap rate of 6.0%; and
  • Acacia: One rear-load industrial distribution building totaling approximately 46,000 square feet on approximately 2.6 acres in Compton, California adjacent to CA Route 91 (the Artesia Freeway) between Los Angeles International Airport and the Ports of LA and Long Beach. This property provides five dock-high and one grade level loading positions and was 100% leased to one tenant on a short-term basis at acquisition. The purchase price was approximately $7.1 million. Subsequent to acquisition the property was leased to a new tenant for a five-year term and the estimated stabilized cap rate increased to 5.1%.

Terreno Realty Corporation has approximately $145.2 million of acquisitions under contract aggregating approximately 1.1 million square feet and approximately $20.3 million of acquisitions under letter of intent aggregating approximately 13,000 square feet and an improved land parcel aggregating approximately 10.6 acres. Terreno Realty Corporation has one property under contract for sale for approximately $25.3 million aggregating approximately 162,000 square feet. There is no assurance that Terreno Realty Corporation will acquire or dispose of the properties under contract or letter of intent because the proposed acquisitions and disposition 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 2017, Terreno Realty Corporation issued an aggregate of 2,047,000 shares of common stock with a weighted average offering price of $27.36 per share, receiving gross proceeds of approximately $56.0 million under the Company’s at-the-market equity offering program. The Company did not repurchase any shares of 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, 2017 on or about May 3, 2017.

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./Baltimore.

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,” 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, 2016 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.

Contacts

Terreno Realty Corporation
W. Blake Baird, 415-655-4580
or
Michael A. Coke, 415-655-4580

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