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$73.0 million of acquisitions comprising 634,000 square feet;
$268.5 million for full-year 2015
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Quarter end occupancy of 91.5% compared to prior quarter of 90.2%
and prior year of 93.7%
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Cash rents on new and renewed leases increased 9.0% for the
full-year 2015
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Sold one property for $11.2 million in the fourth quarter
Terreno Realty Corporation (NYSE:TRNO), an acquirer, owner and
operator of industrial real estate in six major coastal U.S. markets,
announced today its investment, operating and capital markets activity
for the fourth quarter and full year of 2015.
Acquisitions
During the fourth quarter of 2015, Terreno Realty Corporation acquired
five industrial properties consisting of eight buildings containing
approximately 634,000 square feet for an aggregate purchase price of
approximately $73.0 million. The aggregate occupancy of the fourth
quarter acquisitions was approximately 83.1%, including approximately
107,000 square feet of acquired vacancy. The fourth quarter acquisition
activity was as follows:
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180 Manor. One industrial building totaling approximately 84,500
square feet in East Rutherford, New Jersey adjacent to Routes 3 and 17
and Exit 16W of the New Jersey Turnpike and approximately eight miles
from Manhattan. This property provides nine dock-high and three grade
level loading positions and was 100% leased to one tenant on a
short-term basis at acquisition. The purchase price was approximately
$9.3 million with an estimated stabilized cap rate of 6.1%;
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4225 2nd Avenue South. One industrial building totaling
approximately 51,000 square feet in Seattle, Washington adjacent to
Seattle’s Port and SoDo District. The property provides seven
dock-high loading positions and was 100% leased to one tenant on a
short-term basis at acquisition. The purchase price was approximately
$8.3 million with an estimated stabilized cap rate of 5.8%;
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22 Madison. One industrial building totaling approximately 40,000
square feet in Fairfield, New Jersey adjacent to I-80 and U.S. Route
46. This property provides two grade level loading positions and was
100% leased to one tenant at acquisition. The purchase price was
approximately $3.2 million with an estimated stabilized cap rate of
5.8%;
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Kent 202. One industrial building totaling approximately 158,000
square feet in Kent, Washington in the Kent Valley. This property
provides 22 dock-high loading positions and was 100% leased to one
tenant on a short-term basis at acquisition. The purchase price was
approximately $14.9 million with an estimated stabilized cap rate of
6.0%; and
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Central Pacific Business Park. Four recently constructed industrial
buildings totaling approximately 300,500 square feet in Union City,
California adjacent to Interstate 880 between California Highways 92
and 84. The property provides 80 dock-high loading positions, six
grade level loading positions and was 64.4% leased to three tenants at
acquisition. The purchase price was approximately $37.3 million with
an estimated stabilized cap rate of 5.5%.
For the full year 2015, Terreno Realty Corporation acquired 14
industrial properties consisting of 29 buildings containing
approximately 2.3 million square feet for a purchase price of
approximately $268.5 million with a weighted average stabilized cap rate
of approximately 5.8%.
Terreno Realty Corporation has approximately $15.9 million of
acquisitions under contract and $24.3 million under non-binding letters
of intent. There is no assurance that Terreno Realty Corporation will
acquire the properties under contract or letter 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.
Redevelopment
In 2015 Terreno Realty Corporation commenced the redevelopment of its
South Main property in Carson, California with an expected redevelopment
cost of approximately $16.4 million. When complete the property will
contain two buildings totaling approximately 244,000 square feet with a
total expected investment of approximately $38.0 million.
Dispositions
During the fourth quarter of 2015, Terreno Realty Corporation sold one
industrial property in Laurel, Maryland for a sale price of
approximately $11.2, generating an estimated unlevered internal rate of
return of approximately 21.5%. This property was acquired by Terreno
Realty Corporation for approximately $7.0 million in October 2010. For
the full year 2015, Terreno Realty Corporation sold two industrial
properties for a sale price of approximately $24.6 million.
Terreno Realty Corporation has one property under contract for sale for
approximately $8.2 million aggregating approximately 72,000 square feet.
There is no assurance that Terreno Realty Corporation will dispose of
the property under contract because the proposed disposition is subject
to the completion of satisfactory due diligence and closing conditions.
Capital from such sales is recycled into properties that Terreno Realty
Corporation expects to provide better prospective returns or is returned
to shareholders.
Operations
As of December 31, 2015, Terreno Realty Corporation owned 148 buildings
aggregating approximately 11.1 million square feet. Key operating
measures for the portfolio were as follows:
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The total portfolio was 91.5% leased to 352 tenants as compared to
90.2% at September 30, 2015 and 93.7% at December 31, 2014;
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The same store portfolio of approximately 6.3 million square feet was
94.4% leased at December 31, 2015 as compared to 93.2% at September
30, 2015 and 95.4% at December 31, 2014; and
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Cash rents on new and renewed leases totaling approximately 1.8
million square feet commencing during the twelve months ended December
31, 2015 increased approximately 9.0%.
Capital Markets Activity
During the fourth quarter of 2015, Terreno Realty Corporation closed the
previously announced private placement of $50 million 12-year senior
unsecured notes that bear interest at a fixed annual rate of 4.65%.
During the fourth quarter of 2015, Terreno Realty Corporation issued no
shares of stock under the Company’s at-the-market equity offering
program and did not repurchase any shares of stock pursuant to the
Company’s share repurchase authorization.
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-K for the year ended December 31, 2015 on or about February 10, 2016.
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, 2014 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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