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 third quarter of 2018.
As of September 30, 2018, Terreno Realty Corporation owned 203 buildings aggregating approximately 12.9 million square feet and 13 improved land parcels consisting of 52.9 acres. In addition, Terreno Realty Corporation had four buildings under redevelopment that upon completion will contain approximately 484,000 square feet with a total expected investment of $119.7 million, including redevelopment costs, leasing costs, and capitalized interest of approximately $33.4 million:
- The operating portfolio, excluding four properties under redevelopment, was 98.5% leased to 452 tenants as compared to 98.2% at June 30, 2018 and 96.7% at September 30, 2017;
- The same store portfolio of approximately 10.7 million square feet was 98.9% leased at September 30, 2018 as compared to 98.3% at June 30, 2018 and 97.4% at September 30, 2017; and
- Cash rents on new and renewed leases totaling approximately 0.3 million square feet commencing during the third quarter increased approximately 13.4%. Cash rents on new and renewed leases totaling approximately 1.2 million square feet commencing during the nine months ended September 30, 2018 increased approximately 17.5%.
During the third quarter of 2018, Terreno Realty Corporation acquired three industrial properties consisting of eight buildings containing approximately 407,000 square feet for an aggregate purchase price of approximately $67.8 million. The third quarter investment activity was as follows:
- 2700 Merced Street: Three industrial distribution buildings containing approximately 209,000 square feet, one office building containing approximately 16,000 square feet, and one improved land parcel on 14.8 acres in San Leandro, California. The property is west of Interstate 880 and approximately three miles south of Oakland International Airport, provides 12 dock-high and four grade-level loading positions, and parking for 374 cars. The property is 81.6% leased to seven tenants with a purchase price of $36.0 million and estimated stabilized cap rate of 5.2%;
- 30991 San Clemente Street: One industrial distribution building containing approximately 54,000 square feet on 3.4 acres adjacent to Interstate 880 and between California Highways 84 and 92 in Hayward, California. The property provides 16 dock-high and two grade-level loading positions, parking for 89 cars, and is 100% leased to three tenants. The purchase price was $9.0 million and the estimated stabilized cap rate is 4.6%; and
- 701 Whitney Street: Three industrial distribution buildings containing approximately 128,000 square feet on 7.3 acres in San Leandro, California, west of Interstate 880 and less than two miles from Oakland International Airport. The property provides 14 dock-high and 19 grade-level loading positions, parking for 156 cars, and is 95.4% leased to 13 tenants. The purchase price was $22.8 million and the estimated stabilized cap rate is 4.8%.
Year-to-date through the third quarter of 2018, Terreno Realty Corporation acquired nine industrial properties consisting of 13 buildings containing approximately 875,000 square feet and three improved land parcels of approximately 5.0 acres for an aggregate purchase price of approximately $167.3 million, and made one senior secured loan of $55.0 million. Year-to-date through the third quarter of 2018, Terreno Realty Corporation sold two properties containing 441,000 square feet for $44.6 million generating an unleveraged internal rate of return of approximately 10.0%.
Terreno Realty Corporation has approximately $62.0 million of acquisitions under contract aggregating approximately 358,000 square feet and approximately $39.1 million of acquisitions under letter of intent containing approximately 24.8 acres of improved land. Terreno Realty Corporation has two properties under contract for sale for approximately $38.8 million containing approximately 291,000 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 dispositions are subject to the completion of satisfactory due diligence, closing conditions and, in the case of letters of intent, contracts.
During the third quarter of 2018, Terreno Realty Corporation issued 729,667 shares of common stock with a weighted average offering price of $38.22 per share, receiving gross proceeds of $27.9 million under the Companys at-the-market equity offering program. Year-to-date through the third quarter of 2018, Terreno Realty Corporation issued 3,615,068 shares of common stock with a weighted average offering price of $37.59 per share, receiving gross proceeds of $135.9 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 September 30, 2018 on or about November 1, 2018.
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, 2017 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,