Terreno Realty Corporation Announces Quarterly Operating, Investment and Capital Markets Activity
- 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%
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$18.5 million of acquisitions;$448.8 million under contract
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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
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Completed an offering of 6,325,000 shares of common stock for gross proceeds of
$392.2 million
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Issued 2,353,278 shares of common stock under ATM for gross proceeds of
$150.6 million
Operating
As of
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The operating portfolio was 96.2% leased at
March 31, 2024 to 572 tenants as compared to 98.5% atDecember 31, 2023 and 98.1% atMarch 31, 2023 . Occupancy atMarch 31, 2024 declined primarily due to 123,000 square feet of vacancy (approximately 80bps) at our 620 Division property inElizabeth, New Jersey , 69,000 square feet of vacancy (approximately 40bps) at ourWest Avenue 140th property inSan Leandro, California , and 40,000 square feet of acquired vacancy (approximately 30bps) of which 16,000 square feet was subsequently leased with aMay 2024 commencement date;
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The same-store portfolio of approximately 14.7 million square feet was 96.2% leased at
March 31, 2024 as compared to 98.4% atDecember 31, 2023 and 98.3% atMarch 31, 2023 ;
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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% atDecember 31, 2023 and 98.9% atMarch 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
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Terreno Realty Corporation pre-leased 100% ofCountyline Corporate Park Phase IV Building 39 inHialeah, 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 inJuly 2024 . Currently under construction, Building 39 of Terreno Realty Corporation’sCountyline 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,
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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 ofI-90 andI-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 aMay 2024 commencement date; and
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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 theBrooklyn-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,
During the first quarter of 2024,
As of
Capital Markets
During the first quarter of 2024,
In addition,
As of
Additional information is available on the Company’s website at www.terreno.com.
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
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