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.
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%.
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.
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 Companys at-the-market equity offering program. Terreno Realty Corporation did not repurchase any shares of common stock pursuant to the Companys share repurchase authorization.
Additional information is available on the Companys 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.
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 managements 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.
Terreno Realty Corporation
W. Blake Baird or Michael A. Coke,