Terreno Realty Corporation Announces Quarterly Operating, Investment and Capital Markets Activity

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 fourth quarter and full year of 2019.

Operating

As of December 31, 2019, Terreno Realty Corporation owned 220 buildings aggregating approximately 13.3 million square feet and 19 improved land parcels consisting of approximately 77.6 acres. In addition, Terreno Realty Corporation had four properties under redevelopment that upon completion will contain approximately 505,000 square feet:

• The operating portfolio, excluding four properties under redevelopment, was 96.8% leased at December 31, 2019 to 493 tenants as compared to 97.2% at September 30, 2019 and 98.4% at December 31, 2018;
• The same-store portfolio of approximately 11.8 million square feet was 98.4% leased at December 31, 2019 as compared to 99.0% at September 30, 2019 and 99.1% at December 31, 2018;
• The improved land portfolio of 19 parcels totaling approximately 77.6 acres was 92.0% leased at December 31, 2019 as compared to 93.2% at September 30, 2019 and 76.5% at December 31, 2018; and
• Cash rents on new and renewed leases totaling approximately 0.5 million square feet commencing during the fourth quarter increased approximately 15.3%. Cash rents on new and renewed leases totaling approximately 2.4 million square feet commencing during the full year ended December 31, 2019 increased approximately 17.3%.

Investment

During the fourth quarter of 2019, Terreno Realty Corporation acquired three industrial properties consisting of 2 buildings containing approximately 91,000 square feet and one improved land parcel containing approximately 0.9 acres for an aggregate purchase price of approximately $21.6 million. The fourth quarter investment activity was as follows:

• 917 Valley Avenue NW: One industrial building containing approximately 41,000 square feet on 2.3 acres in Puyallup, Washington. The property is less than four miles from the Port of Tacoma and provides ten dock-high and four grade-level loading positions, and parking for 50 cars. The property was acquired 100% leased to two tenants for a purchase price of approximately $6.7 million with an estimated stabilized cap rate of 5.4%;
• 46 Whelan Road: One industrial building containing approximately 50,000 square feet on 3.5 acres in East Rutherford, New Jersey. The property is less than two miles west of the Meadowlands Sports Complex and Exit 16W of the New Jersey Turnpike, provides seven dock-high and one grade-level loading positions, parking for 38 cars, and 30-foot clear height. The property is 100% leased to one tenant on a short-term basis and was acquired for a purchase price of approximately $12.0 million with an estimated stabilized cap rate of 5.0%; and
• 5200 East Marginal Way South: One improved land parcel of approximately 0.9 acres immediately adjacent to Terreno Realty Corporation’s property at 53 South Dawson and Seattle’s Port and SoDo District. The property was acquired vacant for a purchase price of approximately $2.9 million with an estimated stabilized cap rate of 5.6%.

Terreno Realty Corporation’s acquisition activity for the full year 2019 included 13 industrial properties consisting of 17 buildings containing approximately 699,000 square feet and four improved land parcels totaling approximately 22.6 acres for an aggregate purchase price of approximately $273.6 million.