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 second quarter of 2020.

Operating

As of June 30, 2020, Terreno Realty Corporation owned 218 buildings aggregating approximately 13.1 million square feet and 22 improved land parcels consisting of approximately 85.0 acres. In addition, Terreno Realty Corporation had two properties under redevelopment that upon completion will contain approximately 454,000 square feet:

• The operating portfolio, excluding two properties under redevelopment, was 96.0% leased at June 30, 2020 to 484 tenants as compared to 97.8% at March 31, 2020 and 97.9% at June 30, 2019. The decline in occupancy as compared to the prior quarter was driven primarily by a 192,000 square foot lease expiration at the Company’s 130 Interstate property and a 50,000 square foot lease expiration at the Company’s Whelan property which was acquired in fourth quarter of 2019 with a short-term lease;
• The same-store portfolio of approximately 12.0 million square feet was 96.5% leased at June 30, 2020 as compared to 98.0% at March 31, 2020 and 97.7% at June 30, 2019. The decline in occupancy as compared to the prior quarter was driven primarily by a 192,000 square foot lease expiration at the Company’s 130 Interstate property during the second quarter;
• The improved land portfolio of 22 parcels totaling approximately 85.0 acres was 98.5% leased at June 30, 2020 as compared to 96.7% at March 31, 2020 and 93.0% at June 30, 2019;
• Cash rents on new and renewed leases totaling approximately 0.5 million square feet commencing during the second quarter increased approximately 38.2% with a tenant retention ratio of 18.4%. Cash rents on new and renewed leases totaling 1.1 million square feet commencing during the six months ending June 30, 2020 increased approximately 28.9% with a tenant retention ratio of 52.3%; and
• Executed a full-building lease with a leading manufacturer of electric vehicles stabilizing a 51,000 square foot redevelopment property in Seattle, Washington. The total investment cost was approximately $15.9 million with an estimated stabilized cap rate of 5.1%.

Terreno Realty Corporation continues to work with its customers who have been forced to close or otherwise limit operations or whose businesses have been adversely impacted during the pandemic to, on a case-by-case basis, provide rent deferments. With regard to rent billed for June 2020, the Company received, as of July 9, 2020, approximately 93% of such rent in cash and an additional 1% by applying security deposits. As of July 9, 2020: