Terreno Realty Corporation Announces Quarterly Operating, Investment and Capital Markets Activity
Terreno Realty Corporation (NYSE:TRNO), a prominent player in the industrial real estate market, has recently shared its impressive operating, investment, and capital markets activity for the third quarter of 2023. The company continues to solidify its position as a leading acquirer, owner, and operator of industrial real estate in six major coastal U.S. markets, including Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C.
As of September 30, 2023, Terreno Realty Corporation boasted an impressive portfolio, comprising 257 buildings spanning approximately 15.8 million square feet and 46 improved land parcels totaling around 165.8 acres. This extensive portfolio showcases the company’s commitment to providing top-notch industrial real estate solutions to meet the evolving needs of businesses across various sectors.
During the third quarter of 2023, Terreno Realty Corporation made a strategic acquisition, purchasing a 4.9-acre property for approximately $14.8 million. This property will undergo redevelopment, further enhancing its value and potential for future tenants. In fact, Terreno Realty Corporation has been actively investing throughout the year, acquiring a total of five properties, including six buildings covering approximately 681,000 square feet. Additionally, the company acquired a 121-acre project entitled for 2.2 million square feet of industrial distribution buildings, demonstrating its commitment to expanding its portfolio and meeting the growing demand for industrial real estate.
In line with its growth strategy, Terreno Realty Corporation also engaged in property sales during the third quarter of 2023. One notable sale was a 100%-leased property in Hanover, Maryland, which fetched approximately $18.0 million. This successful transaction highlights the company’s ability to generate substantial returns on its investments, with an impressive unleveraged internal rate of return of 17.5%. Year-to-date, Terreno Realty Corporation has sold two properties, including one building and one improved land parcel, for an aggregate sale price of $43.4 million, resulting in an unleveraged internal rate of return of approximately 15.8%.
The company’s commitment to redevelopment and development projects is also evident. During the third quarter of 2023, Terreno Realty Corporation commenced the redevelopment of one property, which will ultimately feature a building spanning approximately 92,000 square feet. The expected investment for this project is approximately $40.6 million. Year-to-date, the company has commenced the development or redevelopment of six properties, including five buildings totaling approximately 1.2 million square feet and one improved land parcel spanning approximately 2.8 acres. These projects represent a significant investment of approximately $282.3 million, further solidifying Terreno Realty Corporation’s commitment to providing state-of-the-art industrial real estate solutions.
Looking ahead, Terreno Realty Corporation has a robust pipeline of projects, with eight properties currently under development or redevelopment. Once completed, these properties will encompass seven buildings totaling approximately 1.2 million square feet, with a pre-leasing rate of approximately 68%. Additionally, the company owns approximately 62.7 acres of land entitled for future development, which can accommodate six buildings spanning approximately 1.1 million square feet. These upcoming projects highlight Terreno Realty Corporation’s dedication to expanding its portfolio and meeting the evolving needs of businesses in key markets.
To support its growth and investment activities, Terreno Realty Corporation has been actively engaged in capital markets. During the third quarter of 2023, the company issued 1,575,173 shares of common stock, generating gross proceeds of $95.7 million. Year-to-date, Terreno Realty Corporation has issued a total of 2,542,279 shares of common stock, resulting in gross proceeds of $156.6 million. Combined with a public offering earlier in the year, the company has issued a total of 8,292,279 shares of common stock, raising aggregate gross proceeds of $516.0 million in 2023. These successful capital market activities demonstrate investor confidence in Terreno Realty Corporation’s growth strategy and future prospects.
Terreno Realty Corporation’s strong financial position is further highlighted by the absence of any outstanding borrowings under its $400 million revolving credit facility as of September 30, 2023. The company’s prudent financial management ensures it has the flexibility and resources to pursue strategic opportunities and navigate market dynamics effectively.
As Terreno Realty Corporation continues to make significant strides in the industrial real estate market, it remains committed to providing exceptional solutions to its tenants and stakeholders. With a diverse portfolio, ongoing investment activities, and a strong capital position, the company is well-positioned for continued success in the coming quarters. For more information about Terreno Realty Corporation and its impressive portfolio, please visit their website at www.terreno.com.