This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
"Our strong fourth quarter was the icing on a very successful 2012 for the Company. We enter 2013 with good momentum and high expectations," said
Ben Butcher, the Company's CEO.
The Company announces December acquisition activity of six industrial buildings acquired in six individual transactions containing a total of 1.4 million square feet for approximately
$55 million. The acquired properties consist of one light manufacturing facility and five warehouse and distribution facilities and the locations include two properties in
Georgia, two properties in
Illinois, one property in
Ohio and one property in Missouri. The properties are all 100% leased with an average remaining lease term of over five years.
In total, the Company acquired 40 industrial facilities consisting of approximately 6.5 million square feet in the fourth quarter. On a square foot basis, these acquisitions increase the Company's asset base by almost 30%. These properties were purchased at an average cap rate of 9+% based on in-place income for a total cost of approximately
$213 million. The fourth quarter acquisitions bring the Company's total acquisition volume for 2012 to approximately
$427 million. Since its IPO in
April 2011, the Company's total acquisition volume is approximately
$553 million, increasing the Company's asset base by 125% on a square foot basis.
The Company has entered into contracts to acquire two additional properties for a combined purchase price of approximately
$11 million. These contracts are subject to various closing conditions which have not yet been satisfied, so there can be no assurance that these transactions will be consummated.
The Company also announced that it has signed leases totaling 856,167 square feet in the fourth quarter of 2012. This leasing activity consists of approximately 184,814 square feet of new or expansion leases and 671,353 square feet of renewal leases. The tenant retention rate for the leases expiring in the fourth quarter of 2012 was 72% resulting in a tenant retention rate for the full year of 84%. The Company's occupancy rate for the fourth quarter decreased to 95.1% from 96.3% at the end of the third quarter of 2012. A major factor in this decrease was the acquisition of 401,147 square feet of vacant space that was included with the portfolio purchase that closed early in the quarter.