BELLEVUE, Wash.--(BUSINESS WIRE)-- 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 2023.
Operating
As of June 30, 2023, Terreno Realty Corporation owned 257 buildings aggregating approximately 15.8 million square feet and 46 improved land parcels consisting of approximately 165.8 acres:
Investment
During the second quarter of 2023, Terreno Realty Corporation acquired one property consisting of one building containing approximately 33,000 square feet for a purchase price of approximately $13.4 million. The second quarter investment activity was as follows:
Year-to-date, Terreno Realty Corporation acquired four properties consisting of six buildings containing approximately 681,000 square feet and a 121-acre project entitled for 2.2 million square feet of industrial distribution buildings for an aggregate purchase price of approximately $396.1 million.
During the second quarter of 2023, Terreno Realty Corporation sold one 100%-leased property in North Bergen, New Jersey containing approximately 127,000 square feet for a sale price of approximately $25.5 million generating an unleveraged internal rate of return of approximately 14.4%. The property was acquired by Terreno Realty Corporation in April 2017 for approximately $14.0 million.
As of June 30, 2023, Terreno Realty Corporation had seven properties under development or redevelopment that, upon completion, will consist of 6 buildings aggregating approximately 1.1 million square feet and one 2.8-acre improved land parcel, with a total expected investment of approximately $295.4 million, excluding land for future development. During the second quarter of 2023, Terreno Realty Corporation commenced construction of buildings 39 and 40 of Terreno Realty Corporation’s Countyline Corporate Park in Miami, two rear-load industrial distribution buildings containing in aggregate 364,000 square feet which are 14% pre-leased and expected to be stabilized in the fourth quarter of 2024. The estimated stabilized cap rate is 6.0%. Additionally, during the second quarter of 2023, Terreno Realty Corporation commenced redevelopment of 14805 S. Maple Avenue, a 2.8-acre improved land parcel in Los Angeles expected to be stabilized in the third quarter of 2024 with an estimated stabilized cap rate of 5.5%.
Terreno Realty Corporation has approximately $49.5 million of acquisitions under contract and approximately $14.8 million of acquisitions under letters of intent. There is no assurance that Terreno Realty Corporation will acquire the properties under contract or letters 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.
Capital Markets
During the second quarter of 2023, Terreno Realty Corporation issued 617,106 shares of common stock with a weighted average offering price of $62.75 per share under the Company’s at-the-market equity offering program, receiving gross proceeds of $38.7 million. Year-to-date through June 30, 2023, Terreno Realty Corporation has issued 967,106 shares of common stock with a weighted average offering price of $62.95 per share, receiving gross proceeds of $60.9 million under the Company’s at-the-market equity offering program. Combined with the February 2023 public offering of 5.75 million shares of common stock, Terreno Realty Corporation has issued 6,717,106 shares of common stock at a weighted average offering price of $62.57 per share, receiving aggregate gross proceeds of $420.3 million in 2023. Terreno Realty Corporation did not repurchase any shares of common stock pursuant to the Company’s share repurchase authorization.
As of June 30, 2023, there were no borrowings outstanding under Terreno Realty Corporation’s $400 million revolving credit facility, and the Company has no debt maturities in 2023.
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 period ended June 30, 2023 on or about August 2, 2023.
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,” 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, 2022 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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Terreno Realty CorporationJaime Cannon, 415-655-4580
Source: Terreno Realty Corporation