Terreno Realty Corporation Shows Strong Q3 Results
BELLEVUE, Wash.-- Terreno Realty Corporation (NYSE: TRNO), an acquirer, owner, and operator of industrial real estate in six major coastal U.S. markets, has announced impressive progress in its operational, investment, and capital markets activities for the recent quarter.
Operating Performance Overview
As of the close of the third quarter, Terreno Realty Corporation boasts a portfolio of 294 buildings, totaling approximately 18.3 million square feet, and 45 hectares of improved land parcels, leased to approximately 675 customers.
Leasing Statistics and Tenant Retention
The overall operating portfolio achieved a lease occupancy of 97% at quarter-end, a notable increase from 96% reported at the end of June. This also compares favorably to the 98.3% occupancy rate from the same period last year. The same-store portfolio reflects similar performance, with a leasing rate of 97.3%, up from 96% at the end of June.
Improved Land Portfolio Details
The improved land portfolio stood strong at an impressive 98.1% leased. In terms of cash rents, there has been a significant rise in rates on new and renewed leases, which saw an overall increase of 24.1% for the quarter. This is complemented by a tenant retention ratio of 67.3% for the operating portfolio and remarkable 100% for improved land.
Investment Strategies and Acquisitions
During this third quarter, Terreno Realty Corporation successfully acquired one new industrial property, a single building of approximately 26,000 square feet in Washington, D.C. at a price of roughly $7.6 million. This property adds to the total acquired portfolio, which now sums up to four properties and seven buildings across different markets, totaling around 423,000 square feet for an aggregate expenditure of about $474.9 million in the year to date.
Upcoming Developments
Additionally, the company completed the development of Countyline Corporate Park Phase IV Building 39, which is fully leased with a total investment of $43.8 million, anticipating a LEED certification status upon completion.
Capital Markets Activity
The third quarter revealed robust capital market activities, highlighted by issuing 2,976,266 shares of common stock at an average price of $68.70, yielding $204.5 million in gross proceeds. Year-to-date, Terreno Realty Corporation has raised approximately $355.1 million from equity offerings.
Expanded Credit Facilities
Also noteworthy is the closing of an $800 million senior amended and restated unsecured credit facility, enhancing the company's borrowing capacity. The maturity date of this facility extends to January 2029, signaling strong financial planning and management.
Dividend Announcement and Future Outlook
Furthermore, Terreno Realty Corporation declared a quarterly cash dividend of $0.49 per common share, marking an increase of 8.9% from previous levels. As the company prepares to file its quarterly report, it remains focused on strategic growth across its coastal markets.
Terreno Realty Corporation operates with a strategic vision, acquiring and developing industrial real estate across Northern New Jersey/New York City; Los Angeles; Miami; the San Francisco Bay Area; Seattle; and Washington, D.C.
Frequently Asked Questions
What is Terreno Realty Corporation's primary business focus?
Terreno Realty Corporation focuses on acquiring, owning, and operating industrial real estate in key coastal markets throughout the United States.
How many properties does Terreno Realty Corporation own?
As of the third quarter of 2024, Terreno Realty Corporation owns 294 buildings and 45 improved land parcels.
What recent developments did Terreno Realty Corporation announce?
The company announced key acquisitions and the completion of a new industrial property, Countyline Corporate Park Phase IV Building 39.
What was their leasing occupancy for the third quarter?
The leasing occupancy for the overall operational portfolio was about 97% as of September 30, 2024.
When does Terreno Realty Corporation plan to file their quarterly report?
Terreno Realty Corporation expects to file its quarterly report on Form 10-Q for Q3 2024 around November 6, 2024.
