Terreno Realty Corporation Announces Quarterly Investment, Operating and Capital Markets Activity

  • $134.5 million of acquisitions comprising 1.4 million square feet
  • Quarter end occupancy of 93.7% compared to prior quarter of 93.8% and prior year of 92.8%
  • Common equity offering raised approximately $183.0 million in net proceeds
  • Added a $100.0 million five-year term loan

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 investment, operating and capital markets activity for the fourth quarter of 2014.

Acquisitions

During the fourth quarter of 2014, Terreno Realty Corporation acquired nine industrial properties consisting of 16 buildings containing approximately 1.4 million square feet for an aggregate purchase price of approximately $134.5 million. During 2014, Terreno Realty Corporation acquired 29 industrial buildings aggregating approximately 2.3 million square feet for an aggregate purchase price of approximately $235.7 million. In addition, Terreno Realty Corporation completed the 190,000 square foot expansion of its Interstate property in South Brunswick, New Jersey for an estimated total investment of approximately $13.6 million. The fourth quarter acquisition activity was as follows:

  • 3401 Lind. One industrial building totaling approximately 113,000 square feet in Renton, Washington. This property provides 11 dock-high and four grade-level loading positions and is immediately adjacent to Terreno Realty Corporation’s 701 SW 34th Street Property, approximately five miles from Sea-Tac International Airport. This building was 100% leased to two tenants at acquisition and was acquired for a purchase price of approximately $10.0 million, including the assumption of a mortgage loan with a total principal amount of approximately $5.7 million and a fixed annual interest rate of 6.06% that matures in July 2016;
  • 900 Hart. One industrial building totaling approximately 84,000 square feet in Rahway, New Jersey adjacent to Exit 12 of the New Jersey Turnpike and Route 1. This building provides eight dock-high and one grade-level loading positions and was 52% leased to one tenant at acquisition. The purchase price for this building was approximately $7.2 million;
  • Kent 216. One industrial building totaling approximately 107,000 square feet in Kent, Washington. This property is located adjacent to Highway 167 in Kent Valley and provides 23 dock-high and three grade-level loading positions and was 100% leased to two tenants at acquisition. This building was acquired for a purchase price of approximately $9.2 million;
  • 9020 Junction. One R&D building totaling approximately 97,000 square feet in Annapolis Junction, Maryland. This property provides six dock-high and two grade-level loading positions and is located approximately three miles from Fort Mead. This building was 100% leased at acquisition to one tenant and was acquired for a purchase price of approximately $13.8 million;
  • 11205 NW 131st. One industrial building totaling approximately 85,000 square feet in Medley, Florida. This property provides 20 dock-high and two grade-level loading positions and is adjacent to North Okeechobee Road and Florida’s Turnpike. This building was 100% leased at acquisition to three tenants and was acquired for a purchase price of approximately $8.9 million;
  • Terminal Way. Two industrial buildings totaling approximately 80,000 square feet in Avenel, New Jersey. This property provides 18 dock-high loading positions and is adjacent to Exit 12 of the New Jersey Turnpike and Route 1. These buildings were 100% leased at acquisition to one tenant and were acquired for a purchase price of approximately $7.5 million;
  • 14605 Miller. One industrial building totaling approximately 265,500 square feet in Fontana, California. This property provides 70 dock-high and four grade-level loading positions and is approximately six miles from the intersection of Interstates 10 and 15 in the western Inland Empire. This building was 100% leased at acquisition to one tenant and was acquired for a purchase price of approximately $22.9 million;
  • Central Pacific. One industrial building and two flex buildings totaling approximately 170,000 square feet in Union City, California. This property is adjacent to Interstate 880 between California Highways 92 and 84 and provides 24 dock-high and 24 grade-level loading positions. These buildings were 98% leased at acquisition to 25 tenants and were acquired for a purchase price of approximately $23.8 million; and
  • Ardmore. Five industrial buildings totaling approximately 384,000 square feet in Landover, Maryland. These buildings provide 67 dock-high and 17 grade-level loading positions and are inside the Capital Beltway approximately three miles from the District of Columbia and adjacent to Highway 50. These buildings were 89% leased at acquisition to 22 tenants and were acquired for a purchase price of approximately $31.2 million.

Terreno Realty Corporation currently has approximately $195.3 million of acquisitions under contract and $8.5 million under letter of intent, including one contract to acquire six buildings in Washington, D.C. for a purchase price of approximately $116.0 million.

Terreno Realty Corporation has one property located in the Washington, D.C./Baltimore market under contract for sale for approximately $11.2 million.

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.

Operations

As of December 31, 2014, Terreno Realty Corporation owned a total of 126 buildings aggregating approximately 9.3 million square feet, which were approximately 93.7% leased to 299 tenants. The leased percentage was 93.8% at September 30, 2014 and 92.8% at December 31, 2013. The same store portfolio of approximately 4.8 million square feet was 97.1% leased at December 31, 2014 as compared to 95.0% at September 30, 2014 and 96.3% at December 31, 2013.

Capital Markets Activity

During the fourth quarter of 2014, Terreno Realty Corporation:

  • Issued 9,775,000 shares of common stock at a price per share of $19.60, generating approximately $183.0 million in net proceeds;
  • Added a new $100.0 million five-year term loan which bears interest at an annual rate of LIBOR plus 1.50% to 2.05% depending on leverage and matures in March 2020; and
  • Issued no shares of stock under the Company’s at-the-market equity offering program.

Additional information is available on the company’s website at www.terreno.com. Terreno Realty Corporation expects to file its annual report on Form 10-K for the year ended December 31, 2014 on or about February 11, 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.

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”, 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, 2013 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.

Contacts

Terreno Realty Corporation
W. Blake Baird or Michael A. Coke, 415-655-4580

Contacts

Terreno Realty Corporation
W. Blake Baird or Michael A. Coke, 415-655-4580