96.9% occupancy at the end of the quarter compared to the prior quarter of 95.5% and the prior year of 96.1%
98.4% same store occupancy at end of quarter compared to prior quarter of 98.2% and prior year of 97.4%
34.8% increase in cash rents on new and renewed leases and 47.7% tenant retention rate
Completed redevelopment of Americas Gateway 5; estimated stabilized cap rate is 6.6%
Signed agreements to host rooftop solar projects in Washington, DC
$86.1 million of acquisitions to date; $293.6 million under contract or letter of intent
BELLEVUE, Wash., April 7, 2022–(COMMERCIAL WIRE)–Terreno Realty Corporation (NYSE:TRNO), an acquirer, owner and operator of industrial real estate in six major U.S. coastal markets, today announced its capital markets, investment and operating activity for the first quarter of 2022.
As of March 31, 2022, Terreno Realty Corporation owned 256 buildings totaling approximately 15.1 million square feet and 37 improved parcels of land consisting of approximately 128.3 acres. In addition, Terreno Realty Corporation had four properties undergoing renovations that, when completed, will consist of four buildings totaling approximately 536,000 square feet and two improved parcels of land of approximately 12.1 acres:
The operating portfolio, excluding two properties under renovation, was 96.9% leased as of March 31, 2022 to 565 tenants compared to 95.5% as of December 31, 2021 and 96.1% as of December 31, 2022. March 31, 2021. Occupancy as of March 31, 2022 included acquired vacancy of 141,000 sf (approximately 90bps) which was pre-leased and expected to commence prior to June 30, 2022;
The same store portfolio of approximately 12.4 million square feet was 98.4% leased as of March 31, 2022 compared to 98.2% as of December 31, 2021 and 97.4% as of March 31, 2021;
The improved land portfolio of 37 parcels, excluding two parcels under redevelopment, totaling approximately 128.3 acres, was 94.9% leased as of March 31, 2022 compared to 94.8% as of March 31, 2022. December 2021 and 97.9% as of March 31, 2021;
Cash rents on new and renewed leases totaling approximately 0.7 million square feet and 4.2 acres of improved land as of the first quarter increased approximately 34.8% with a tenant retention rate 47.7%;
The Americas Gateway 5 redevelopment property, which was 100% leased to four tenants, moved into the operating portfolio. The total cost of the remodeled property was approximately $7.5 million and the estimated stabilized capitalization rate is 6.6%;
Signed agreements to host rooftop solar projects in Washington, DC, with an aggregate power generation capacity of 8.4 MW, equivalent capacity to power more than 700 homes. The Company expects the projects to be operational in 2023 as part of Terreno Realty Corporation’s sustainability goal of rooftop solar on at least 5% of total rooftop area by the end of 2024; and
Achieved LEED certification at 4021-4071 West 108th Street in Hialeah, Florida, totaling 274,000 square feet.
During the first quarter of 2022, Terreno Realty Corporation acquired four properties consisting of four buildings containing approximately 434,000 square feet and an improved parcel of land of approximately 1.2 acres for a total purchase price of approximately $86.1 million. Investment activity for the first quarter was as follows:
11113 NE 33rd Place, 11110 Northup Way and 11135 NE 33rd Place: Three properties consisting of an industrial distribution building containing approximately 20,000 square feet on 0.9 acres with two dock level and two ground level loading positions and parking for 21 cars, a flexible building containing approximately 9,000 square feet on 0.8 acres with two dock level and two ground level loading positions and parking for 26 cars, and an improved parcel of land of approximately 1.2 acres. The properties are located in Bellevue, Washington, adjacent to the intersection of Washington’s I-405 and SR 520. The properties were acquired 100% leased to three tenants for a purchase price of approximately $13.0 million and an estimated stabilized capitalization rate of 3.4%; and
4281-4341 West 108th Street – Two 32-foot rear-loading cleared industrial distribution buildings in development containing approximately 407,000 square feet on 19.8 acres in Hialeah, Florida, immediately adjacent to five existing Terreno Realty Corporation buildings on West 108th Street and adjacent to Florida’s Turnpike and the southern terminus of I-75. The property offers 124 dock level and four grade level loading bays and parking for 359 cars and is expected to achieve LEED certification. The buildings are expected to be completed by the third quarter of 2022 and are 100% pre-leased to two tenants. The property is included in the redevelopment pool with an expected total investment of approximately $75.5 million, net of free rent credits and including capitalized interest, and an estimated stabilized capitalization rate of 3.8%.
As of March 31, 2022, Terreno Realty Corporation had four properties under renovation (NW 73dr and 4281-4341 West 108th Street in Miami, 245 Paterson Plank Road in northern New Jersey, and Berryessa Road in San Francisco) which, upon completion, will consist of four buildings adding approximately 536,000 square feet and two improved parcels of land of approximately 12.1 acres, with a total expected investment of approximately $144.4 million.
Terreno Realty Corporation has approximately $193.2 million in acquisitions under contract and approximately $100.4 million in acquisitions under letters of intent. Terreno Realty Corporation has property under contract for sale for approximately $110.4 million totaling approximately 580,000 square feet. There is no assurance that Terreno Realty Corporation will acquire or dispose of the properties under contract or letters of intent because proposed acquisitions and dispositions are subject to satisfactory due diligence, closing conditions, and, in the case of letters of intent, contracts. .
During the first quarter of 2022, Terreno Realty Corporation did not issue any common shares under the Company’s equity offering program. Terreno Realty Corporation did not repurchase any common shares 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-Q for the period ended March 31, 2022 on or about May 4, 2022.
Terreno Realty Corporation acquires, owns and operates industrial real estate in six major US coastal markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington , DC
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 assumptions made by management and information currently available to management. When used, the words “anticipate”, “believe”, “estimate”, “expect”, “intend”, “may”, “could”, “plan”, “project”, “result”, “should”, “will”, “seek”, “target”, “see”, “likely”, “position”, “opportunity”, “prospect” and similar expressions that 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 beyond our control, including risks related to our ability to comply with our estimated forecasts related to stabilized capitalization rates, the impact of the COVID-19 pandemic on our business, our tenants, and the national and local economies, and risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2021 and our other public filings. If one or more of these risks or uncertainties materialize, or 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, except as required by law. Accordingly, investors should be careful in relying on past forward-looking statements, which are based on results and trends at the time they are made, to anticipate future results or trends.
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Land Realty Corporation
Jaime Canon, 415-655-4580