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 2016.

Operations

As of June 30, 2016, Terreno Realty Corporation owned 153 buildings aggregating approximately 11.2 million square feet and three improved land parcels consisting of 8.0 acres. Key operating measures for the portfolio were as follows:
  • The total portfolio was 92.7% leased to 358 tenants as compared to 90.7% at March 31, 2016 and 94.4% at June 30, 2015;
  • The same store portfolio of approximately 8.7 million square feet was 95.1% leased at June 30, 2016 as compared to 92.2% at March 31,2016 and 95.1% at June 30, 2015;
  • Cash rents on new and renewed leases totaling approximately 0.4 million square feet commencing during the three months ended June 30, 2016 increased approximately 11.2%. Cash rents on new and renewed leases totaling approximately 0.8 million square feet commencing during the six months ended June 30, 2016 increased approximately 9.0%; and
  • Executed a five-year lease for 221,000 square feet at its Interstate property in South Brunswick, New Jersey that commences on September 1, 2016.

Occupancy at June 30, 2016 was negatively impacted by 294,000 square feet of vacancy at three properties that were acquired subject to short-term leases that have expired.

Acquisitions

During the second quarter of 2016, Terreno Realty Corporation acquired four industrial properties consisting of four buildings containing approximately 162,000 square feet for an aggregate purchase price of approximately $20.9 million and a weighted average stabilized cap rate of approximately 5.7%. Year-to-date, Terreno Realty Corporation acquired eight industrial properties aggregating 287,000 square feet and one improved land site for an aggregate purchase price of approximately $48.0 million and a weighted average stabilized cap rate of approximately 5.8%. The second quarter acquisition activity was as follows:
  • 902 4 th Street SW. One industrial building totaling approximately 67,000 square feet in Auburn, Washington adjacent to Valley Freeway, State Route 167 in the Kent Valley. This property provides 12 dock-high and seven grade-level loading positions and was 100% leased to three tenants at acquisition. The purchase price was approximately $7.4 million with an estimated stabilized cap rate of 5.1%;
  • 1940 NW 70th. One industrial building totaling approximately 54,000 square feet in Miami, Florida immediately adjacent to Miami International Airport. This property provides eight dock-high and one grade-level loading positions and was 100% leased to two tenants at acquisition. The purchase price was approximately $6.4 million with an estimated stabilized cap rate of 6.3%;
  • 5300 Denver. One industrial building totaling approximately 25,000 square feet in Seattle, Washington adjacent to Seattle's Port and SoDo district. The property provides seven dock-high and one grade-level loading positions and was 100% leased to one tenant at acquisition. The purchase price was approximately $4.7 million with an estimated stabilized cap rate of 5.5%; and
  • 445 Wilson. One industrial building totaling approximately 17,000 square feet in Newark, New Jersey located within two miles of Newark Liberty International Airport and the Port of Newark. The property provides 10 dock-high loading positions and was 100% leased to one tenant at acquisition. The purchase price was approximately $2.5 million with an estimated stabilized cap rate of 6.3%.

Terreno Realty Corporation has approximately $46.6 million of acquisitions under contract aggregating approximately 355,000 square feet and approximately $34.0 under letter of intent aggregating approximately 294,000 square feet. Terreno Realty Corporation has one property under contract for sale for approximately $6.1 million aggregating approximately 40,000 square feet. 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.

Capital Markets Activity

During the second quarter of 2016, Terreno Realty Corporation issued an aggregate of 2,578,640 shares of common stock with a weighted average offering price of $24.27 per share, receiving gross proceeds of approximately $62.6 million under the Company's at-the-market equity offering program. Year-to-date, Terreno Realty Corporation issued an aggregate of 2,629,608 shares of common stock with a weighted average offering price of $24.26 per share, receiving gross proceeds of approximately $63.8 million under the Company's at-the-market equity offering program. The Company did not repurchase any shares of stock pursuant to the Company's share repurchase authorization.

On July 7, 2016 Terreno Realty Corporation completed the previously announced private placement of $50 million ten-year senior unsecured notes that bear interest at a fixed annual interest rate of 3.99%.

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, 2016 on or about July 27, 2016.

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./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, 2015 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.

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