- 96.0% quarter-end occupancy compared to prior quarter of
96.2% and prior year of 97.8%
- 96.0% quarter-end same-store occupancy compared to prior
quarter of 96.2% and prior year of 98.1%
- 45.9% increase in cash rents on new and renewed leases;
46.5% increase year-to-date
- $448.8 million of acquisitions; $467.3 million
year-to-date
- Commenced development of one property with total expected
investment of $42.1 million
- Stabilized two buildings containing 692,000 square feet at
Countyline Corporate Park
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 second quarter of 2024.
Operating
As of June 30, 2024, Terreno Realty Corporation owned 292
buildings aggregating approximately 18.1 million square feet and 45
improved land parcels consisting of approximately 152.4 acres:
- The operating portfolio was 96.0% leased at June 30, 2024 to
668 tenants as compared to 96.2% at March 31, 2024 and 97.8% at
June 30, 2023. Occupancy declined during the second quarter
primarily due to 99,000 square feet of acquired vacancy
(approximately 60bps);
- The same-store portfolio of approximately 14.7 million square
feet was 96.0% leased at June 30, 2024 as compared to 96.2% at
March 31, 2024 and 98.1% at June 30, 2023;
- The improved land portfolio of 45 parcels totaling
approximately 152.4 acres was 98.1% leased at June 30, 2024 as
compared to 94.6% at March 31, 2024 and 96.3% at June 30,
2023;
- Cash rents on new and renewed leases totaling approximately 0.5
million square feet and 18.9 acres of improved land commencing
during the second quarter increased approximately 45.9% with a
tenant retention ratio of 56.4% for the operating portfolio and
61.2% for the improved land portfolio. Cash rents on new and
renewed leases totaling approximately 1.2 million square feet and
22.2 acres of improved land commencing during the six months ended
June 30, 2024 increased approximately 46.5% with a tenant retention
ratio of 56.6% for the operating portfolio and 65.7% for the
improved land portfolio;
- Executed a lease for 5.5 acres of improved land in Newark, New
Jersey with an automobile exporter. The lease commenced in May 2024
and will expire January 2028; and
- Executed an early lease renewal and expansion in Fremont,
California with an Advanced Air Mobility provider. The renewal
lease of 30,000 square feet, which was to expire in February 2025,
will now expire August 2029. The expansion lease of 41,000 square
feet commenced in June 2024 and will expire August 2029.
Investment
During the second quarter of 2024, Terreno Realty Corporation
acquired one industrial property consisting of four buildings
containing approximately 357,000 square feet and a multi-market
portfolio of industrial properties consisting of 28 buildings
containing approximately 1.2 million square feet for an aggregate
purchase price of approximately $448.8 million. The second quarter
investment activity was as follows:
- 6584-6674 Fleet Drive: Four industrial distribution buildings
containing approximately 357,000 square feet on 19.1 acres located
in Alexandria, Virginia, approximately two miles from the
intersection of I-95/395 and I-495 (Capital Beltway). The property
provides 67 dock-high and 38 grade-level loading positions and
parking for 580 cars. The property was acquired 100% leased to 21
tenants, with all leases expiring by 2031, for a purchase price of
approximately $84.3 million and an estimated stabilized cap rate of
5.3%; and
- Multi-market portfolio of industrial properties: 28 buildings
containing approximately 1.2 million square located in New York
City, Northern New Jersey, San Francisco Bay Area, and Los Angeles.
The portfolio was acquired 91.6% leased to 70 tenants for a
purchase price of approximately $364.5 million. The in-place cap
rate is 4.3%, the estimated stabilized cap rate is 5.0% and the
estimated stabilized cap rate adjusting to today’s market rents is
5.8%.
Year-to-date, Terreno Realty Corporation has acquired three
properties consisting of six buildings containing approximately
397,000 square feet and a multi-market portfolio of industrial
properties consisting of 28 buildings containing approximately 1.2
million square feet for an aggregate purchase price of
approximately $467.3 million.
During the second quarter of 2024, Terreno Realty Corporation
commenced development of Countyline Corporate Park Phase IV
Building 31 in Hialeah, Florida that, upon completion, will consist
of one industrial distribution building containing approximately
162,000 square feet, with a total expected investment of
approximately $42.1 million. Building 31 has been 100% pre-leased
to a national tire distributor commencing with building completion,
expected to be in the fourth quarter of 2024, and expiring May
2032.
Year-to-date, Terreno Realty Corporation has commenced
development of three properties that, upon completion, will consist
of three industrial distribution buildings aggregating
approximately 484,000 square feet, with a total expected investment
of approximately $121.2 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 $64.0 million.
During the second quarter of 2024, Terreno Realty Corporation
completed the development and stabilization of Countyline Corporate
Park Phase IV Building 38 in Hialeah, Florida. The building is 100%
leased to a North American distributor of foodservice packaging,
commercial cleaning supplies, janitorial equipment and industrial
packaging. Building 38 is a 506,000 square foot 36-foot clear
height cross-dock industrial distribution building on 27.6 acres
with 105 dock-high and four grade-level loading positions and
parking for 360 cars. The building is expected to achieve LEED
certification, the total expected investment is $88.5 million and
the estimated stabilized cap rate is 5.0%.
During the second quarter of 2024, Terreno Realty Corporation
completed the development and stabilization of Countyline Corporate
Park Phase IV Building 40 in Hialeah, Florida. The building, which
was previously expected to stabilize in the fourth quarter of 2024,
is 100% leased to four tenants. Building 40 is a 186,000 square
foot 36-foot clear height industrial distribution building on 9.1
acres with 60 dock-high and two grade-level loading positions and
parking for 159 cars. The building is expected to achieve LEED
certification, the total expected investment is $43.8 million and
the estimated stabilized cap rate is 6.3%.
As of June 30, 2024, Terreno Realty Corporation had nine
properties under development or redevelopment that, upon
completion, will consist of ten buildings aggregating approximately
1.1 million square feet which are approximately 41% pre-leased and
one approximately 2.8-acre improved land parcel, with a total
expected investment of approximately $389.3 million. Additionally,
we owned approximately 35.4 acres of land entitled for future
development of three buildings aggregating approximately 0.7
million square feet.
Terreno Realty Corporation has approximately $7.7 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 second quarter of 2024, Terreno Realty Corporation
did not issue any shares of common stock under the Company’s
at-the-market equity offering program. Year-to-date through June
30, 2024, Terreno Realty Corporation has 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. Combined with the March
2024 public offering of 6,325,000 shares of common stock, Terreno
Realty Corporation has issued 8,678,278 shares of common stock at a
weighted average offering price of $62.54 per share, receiving
aggregate gross proceeds of $542.8 million. Terreno Realty
Corporation did not repurchase any shares of common stock pursuant
to the Company’s share repurchase authorization.
As of June 30, 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 July 2024 which will be retired
utilizing cash on hand 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 June 30, 2024
on or about August 7, 2024.
Terreno Realty Corporation acquires, owns and operates
industrial real estate in six major coastal U.S. markets: Northern
New Jersey/New York City; Los Angeles; Miami; San Francisco Bay
Area; Seattle 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/20240709921408/en/
Terreno Realty Corporation Jaime Cannon, 415-655-4580
Terreno Realty (NYSE:TRNO)
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