BELLEVUE, WA - Oct. 7, 2021
BELLEVUE, Wash.--(BUSINESS WIRE)-- 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 third quarter of 2021.
Operating
As of September 30, 2021, Terreno Realty Corporation owned 241 buildings aggregating approximately 14.1 million square feet and 31 improved land parcels consisting of approximately 114.7 acres. In addition, Terreno Realty Corporation had four properties under redevelopment that upon completion will consist of three properties with buildings aggregating approximately 415,000 square feet and one improved land parcel of approximately 4.9 acres:
Investment
During the third quarter of 2021, Terreno Realty Corporation acquired ten properties consisting of eight buildings containing approximately 339,000 square feet and five improved land parcels of approximately 22.0 acres for an aggregate purchase price of approximately $167.1 million. The third quarter investment activity was as follows:
As of September 30, 2021, Terreno Realty Corporation had four properties under redevelopment (SoDo Row in Seattle, NW 73rd and America’s Gateway 5 in Miami, and 245 Paterson Plank Road in New Jersey) that upon completion will consist of three properties with buildings aggregating approximately 415,000 square feet and one improved land parcel of approximately 4.9 acres, with a total expected investment of approximately $115.2 million.
Subsequent to September 30, 2021, Terreno Realty Corporation acquired a property at 16224-16240 Woodinville Redmond Road. The property consists of one industrial distribution building containing approximately 84,000 square feet on 5.1 acres in Woodinville, Washington, southeast of the intersection of I-405 and SR 522. The property provides 16 dock-high and three grade-level loading positions and parking for 139 cars. The property was acquired 100% leased to one tenant for a purchase price of approximately $23.6 million and an estimated stabilized cap rate of 3.1%.
Year-to-date, Terreno Realty Corporation has acquired 21 properties consisting of 22 buildings containing approximately 1,088,000 square feet and eight improved land parcels of approximately 33.4 acres for an aggregate purchase price of $354.9 million. During the third quarter of 2021, Terreno Realty Corporation sold one property in Seattle containing approximately 35,000 square feet for a sale price of approximately $10.3 million generating an unleveraged internal rate of return of approximately 11.0%.
Terreno Realty Corporation has approximately $110.7 million of acquisitions under contract and approximately $141.0 million of acquisitions under letter of intent. Terreno Realty Corporation has one property under contract for sale for approximately $32.7 million aggregating approximately 167,000 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
During the third quarter of 2021, Terreno Realty Corporation issued 751,539 shares of common stock with a weighted average offering price of $66.51 per share, receiving gross proceeds of $50.0 million under the Company’s at-the-market equity offering program. Year-to-date through September 30, 2021, Terreno Realty Corporation has issued 2,542,357 shares of common stock with a weighted average offering price of $63.22 per share, receiving gross proceeds of $160.7 million under the Company’s at-the-market equity offering program. Terreno Realty Corporation did not repurchase any shares of common stock pursuant to the Company’s share repurchase authorization.
During the third quarter of 2021, Terreno Realty Corporation closed on the previously announced private placement of $150 million senior unsecured notes. The senior unsecured notes consist of $100 million seven-year senior unsecured notes (“Green Bonds”) that bear interest at a fixed rate of 2.41% and $50 million ten-year senior unsecured notes that bear interest at a fixed rate of 2.84%. The Company has allocated the net proceeds of the Green Bonds to recently completed and future green buildings that will be LEED, BREEAM or Energy Star certified, and towards projects that improve energy efficiency, sustainable water and wastewater management, and renewable energy.
During the third quarter of 2021, Terreno Realty Corporation announced the pricing of the private placement of $125 million nine-year senior unsecured notes that bear interest at a fixed rate of 2.38%. The private placement is expected to close on or around October 28, 2021, and the Company intends to use the net proceeds from the offering to fund future acquisitions and for other corporate purposes.
During the third quarter of 2021, Terreno Realty Corporation closed a $350 million amended and restated senior unsecured credit facility (the “Facility”) to replace its existing $350 million senior unsecured credit facility. Interest rates on the Facility depend on Terreno Realty Corporation’s total debt as a percentage of total asset value as defined by the Facility. The Facility consists of a $250 Million Revolving Credit Facility that bears a current interest rate of LIBOR plus 1.00% (previously 1.05%) and will mature in August 2025, and a $100 Million Term Loan that bears a current interest rate of LIBOR plus 1.15%, a reduction of 5 basis points. The maturity date of the outstanding term loan was extended to January 2027.
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 September 30, 2021 on or about November 3, 2021.
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.
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,” “seek,” “target,” “see,” “likely,” “position,” “opportunity,” “outlook,” 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, the impact of the COVID-19 pandemic on our business, our tenants and the national and local economies, and those risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2020 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, except as required by law. Accordingly, investors should use caution 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.
Terreno Realty Corporation
Jaime Cannon, 415-655-4580
Terreno Realty Corp.
Symbol: TRNO
CIK: 1476150
Exchange: NYSE
Founded: 2009 (15 years)
Type of REIT: Equity REIT
Listing Status: Public
Market Capitalization: Mid-Cap
REIT Sector: Industrial
REITRating is REITNote's Real Estate Investment Trust industry-specific rating and ranking system. The overall score is out of ten points, with ten being the best score.
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