- 96.2% quarter-end occupancy compared to prior quarter of
98.5% and prior year of 98.1%
- 96.2% quarter-end same-store occupancy compared to prior
quarter of 98.4% and prior year of 98.3%
- 47.2% increase in cash rents on new and renewed leases and
tenant retention ratio of 54.7%
- $18.5 million of acquisitions; $448.8 million under
contract
- Commenced two developments with total expected investment of
$79.1 million; commenced redevelopment of one existing property
with expected additional investment of $67.8 million
- Completed an offering of 6,325,000 shares of common stock
for gross proceeds of $392.2 million
- Issued 2,353,278 shares of common stock under ATM for gross
proceeds of $150.6 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 2024.
Operating
As of March 31, 2024, Terreno Realty Corporation owned 258
buildings aggregating approximately 15.8 million square feet and 45
improved land parcels consisting of approximately 152.4 acres:
- The operating portfolio was 96.2% leased at March 31, 2024 to
572 tenants as compared to 98.5% at December 31, 2023 and 98.1% at
March 31, 2023. Occupancy at March 31, 2024 declined primarily due
to 123,000 square feet of vacancy (approximately 80bps) at our 620
Division property in Elizabeth, New Jersey, 69,000 square feet of
vacancy (approximately 40bps) at our West Avenue 140th property in
San Leandro, California, and 40,000 square feet of acquired vacancy
(approximately 30bps) of which 16,000 square feet was subsequently
leased with a May 2024 commencement date;
- The same-store portfolio of approximately 14.7 million square
feet was 96.2% leased at March 31, 2024 as compared to 98.4% at
December 31, 2023 and 98.3% at March 31, 2023;
- The improved land portfolio of 45 parcels totaling
approximately 152.4 acres was 94.6% leased at March 31, 2024 as
compared to 94.6% at December 31, 2023 and 98.9% at March 31,
2023;
- Cash rents on new and renewed leases totaling approximately 0.7
million square feet and 3.3 acres of improved land commencing
during the first quarter increased approximately 47.2% with a
tenant retention ratio of 54.7% for the operating portfolio and
82.5% for the improved land portfolio; and
- Terreno Realty Corporation pre-leased 100% of Countyline
Corporate Park Phase IV Building 39 in Hialeah, Florida. The
ten-year lease is an expansion with an existing tenant who provides
turbine engine disassembly, repair, logistics and storage devices,
and will commence upon completion of tenant improvements expected
in July 2024. Currently under construction, Building 39 of Terreno
Realty Corporation’s Countyline Corporate Park is a 178,000 square
foot 36-foot clear height rear-load industrial distribution
building on 10.9 acres with 58 dock-high and two grade-level
loading positions and parking for 156 cars. The building is
expected to achieve LEED certification with a total expected
investment of $43.8 million and estimated stabilized cap rate of
5.8%.
Investment
During the first quarter of 2024, Terreno Realty Corporation
acquired two properties consisting of two buildings aggregating
approximately 40,000 square feet for an aggregate purchase price of
approximately $18.5 million. The first quarter investment activity
was as follows:
- 13045 SE 32nd Street: One industrial distribution building
containing approximately 16,000 square feet on 1.8 acres located in
Bellevue, Washington, adjacent to the intersection of I-90 and
I-405. The property provides three dock-high and two grade-level
loading positions and parking for 22 cars. The property was
acquired vacant for a purchase price of approximately $6.5 million
and an estimated stabilized cap rate of 5.8%. The property was
subsequently leased with a May 2024 commencement date; and
- 181 Lombardy Street: One industrial distribution building
containing approximately 24,000 square feet on 0.7 acres located in
East Williamsburg, Brooklyn, New York, adjacent to the
Brooklyn-Queens Expressway. The property provides one dock-high and
one grade-level loading position and parking for 10 cars. The
property was acquired vacant for a purchase price of approximately
$12.0 million and an estimated stabilized cap rate of 5.7%.
During the first quarter of 2024, Terreno Realty Corporation
sold one property in Seattle, Washington consisting of a 25,000
square foot industrial distribution building on 1.5 acres for a
sale price of approximately $11.0 million. The property was
acquired by Terreno Realty Corporation in May 2016 for
approximately $4.7 million. The unleveraged internal rate of return
generated by the investment was 16.5%.
During the first quarter of 2024, Terreno Realty Corporation
commenced development of two properties at Countyline Corporate
Park Phase IV in Hialeah, Florida that, upon completion, will
consist of two industrial distribution buildings aggregating
approximately 322,000 square feet, with a total expected investment
of approximately $79.1 million. Additionally, we commenced the
redevelopment of one existing property in Gardena, California that,
upon completion, will consist of three industrial distribution
buildings aggregating approximately 228,000 square feet, with an
expected additional investment of $67.8 million.
As of March 31, 2024, Terreno Realty Corporation had ten
properties under development or redevelopment that, upon
completion, will consist of eleven buildings aggregating
approximately 1.6 million square feet which are approximately 58%
pre-leased and one approximately 2.8-acre improved land parcel,
with a total expected investment of approximately $483.6 million.
Additionally, we owned approximately 45.5 acres of land entitled
for future development of four buildings aggregating approximately
0.8 million square feet.
Terreno Realty Corporation has approximately $448.8 million of
acquisitions under contract. There is no assurance that Terreno
Realty Corporation will acquire the properties under contract
because the proposed acquisitions are subject to the completion of
satisfactory due diligence and closing conditions.
Capital Markets
During the first quarter of 2024, Terreno Realty Corporation
completed an offering of 6,325,000 shares of its common stock at a
price to the public of $62.00 per share, receiving gross proceeds
of $392.2 million. The Company intends to use the net proceeds from
the offering for future acquisitions, funding of development and
redevelopment properties, and for other general corporate
purposes.
In addition, Terreno Realty Corporation issued 2,353,278 shares
of common stock with a weighted average offering price of $64.00
per share under the Company’s at-the-market equity offering
program, receiving gross proceeds of $150.6 million. Terreno Realty
Corporation did not repurchase any shares of common stock pursuant
to the Company’s share repurchase authorization.
As of March 31, 2024, there were no borrowings outstanding under
Terreno Realty Corporation’s $400 million revolving credit
facility. Terreno Realty Corporation has one $100 million senior
unsecured note maturing in 2024 and no debt maturing in 2025.
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 quarter ended March 31, 2024
on or about May 8, 2024.
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”, “potential”, “future” 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, 2023 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/20240408008020/en/
Terreno Realty Corporation Jaime Cannon, 415-655-4580
Terreno Realty (NYSE:TRNO)
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