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 quarterly operating, investment and capital markets activity for the second quarter of 2015.
Operations
As of June 30, 2015, Terreno Realty Corporation owned a total of 137 buildings aggregating approximately 10.5 million square feet, which were approximately 94.4% leased to 317 tenants. The leased percentage was 92.0% at March 31, 2015 and 96.4% at June 30, 2014. For the six months ended June 30, 2015, cash rents on approximately 1.4 million square feet of new and renewed leases increased approximately 6.8%. The same store portfolio of approximately 6.6 million square feet was 96.9% leased at June 30, 2015 as compared to 94.1% at March 31, 2015 and 96.2% at June 30, 2014.
Acquisitions
During the second quarter of 2015, Terreno Realty Corporation acquired two industrial properties consisting of two buildings containing approximately 150,000 square feet for an aggregate purchase price of approximately $14.4 million. Year-to-date, Terreno Realty Corporation acquired 17 industrial buildings aggregating approximately 1.5 million square feet for an aggregate purchase price of approximately $178.2 million with a weighted average stabilized cap rate of approximately 5.8%. The second quarter acquisition activity was as follows:
- Kent 190th. One industrial building totaling approximately 115,300 square feet in Kent, Washington in the northern Kent Valley. This property provides 14 dock-high and two grade-level loading positions and was 100% leased to two tenants at acquisition. The purchase price for this property was approximately $11.2 million; and
- Olympic. One industrial building totaling approximately 34,200 square feet in Tukwila, Washington in the northern Kent Valley.
This property provides eight dock-high loading positions and was 100% leased to one tenant at acquisition. The purchase price for this property was approximately $3.2 million.
Subsequent to June 30, 2015, Terreno Realty Corporation acquired one industrial property located in Kent, Washington consisting of four industrial distribution buildings for a purchase price of approximately $12.3 million, including the assumption of a mortgage loan with a principal balance of approximately $4.8 million. The loan bears interest at approximately 5.7% and matures in March 2016.
Terreno Realty Corporation has approximately $46.6 million of acquisitions under contract and $17.1 million under letter of intent. In addition, Terreno Realty Corporation has one property under contract for sale for approximately $11.2 million totaling approximately 85,000 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.
Dispositions
During the second quarter of 2015, Terreno Realty Corporation sold one industrial property located in Fremont, California for a sale price of approximately $13.4 million, generating an estimated unlevered internal rate of return of approximately 15.1%. Capital from such sales is recycled into properties that are expected to provide better prospective returns or is returned to shareholders. This property was acquired by Terreno Realty Corporation for approximately $7.3 million in March 2010.
Capital Markets Activity
During the second quarter of 2015, Terreno Realty Corporation issued an aggregate of 136,600 shares of common stock at a weighted average offering price of $22.85 per share, receiving gross proceeds of approximately $3.1 million under the Company’s at-the-market equity offering program.
On June 9, 2015, Fitch Ratings assigned Terreno Realty Corporation an initial issuer default rating of BBB- with a stable outlook.
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 June 30, 2015 on or about August 5, 2015.
Terreno Realty Corporation is an acquirer, owner and operator of 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.
