CHICAGO, IL--(Marketwired - March 05, 2014) - Becknell Industrial announced today financial results for the year ending December 31, 2013.
"Our strategic initiatives implemented in 2012 continued to provide us with many growth opportunities this past year. We successfully enhanced the quality of our portfolio through the purchase of several key assets and top-tier developments for our national clients. We were very pleased to improve the occupancy of our overall portfolio and we look forward to continuing this momentum in 2014," said Dan Harrington, Chief Executive Officer and President.
In-Service Property Results and Leasing Activity
As of December 31, 2013, Becknell owned and controlled 100 in-service properties, totaling 9.4 million square feet. The portfolio was 98.4 percent occupied on a square foot basis, a 177 basis point increase from December 31, 2012.
During 2013, the Company signed new leases totaling 135,400 square feet with a weighted average lease term of 6.2 years. The Company's tenant retention rate was 95.0 percent for the year ending December 31, 2013, renewing nearly 700,000 square feet of leases with leasing spreads of 6.7 percent on average rents and (0.1) percent on cash rents.
During 2013, Becknell completed $51.0 million of acquisitions at a weighted average cap rate of 8.6 percent. These five properties totaled 1.1 million square feet and were 100 percent leased. These included:
- In Jacksonville, Florida, a 240,000 square foot distribution facility leased to PenserSC, a division of Suddath Global Logistics and one of the oldest logistics companies in the southeast;
- Also in Jacksonville, a 240,000 square foot facility leased to Samsonite;
- Located in the Indianapolis, Indiana market, a 250,000 square foot distribution facility leased to Spectra Premium Industries which manufactures fuel delivery and heat exchange automotive systems;
- In Maple Grove, Minnesota, a 195,200 square foot distribution facility leased to Gannett Company, a media and marketing solutions company with a diverse portfolio of broadcast, digital, mobile and publishing companies; and
- Located in St. Louis, Missouri, an 185,400 square foot distribution facility leased to Unisource which specializes is commercial and business printing, packaging and facility systems and supplies.
During 2013, Becknell Industrial placed in-service six developments totaling $35.7 million. Combined, these developments include more than 368,300 square feet and have a weighted average lease term of nearly 13 years. As of December 31, 2013, the Company had four additional projects under active development with a total projected investment of $62.2 million. These developments total 895,300 square feet and are 100 percent leased to key repeat customers.
Development highlights include the following new starts:
- In Alsip, Illinois, a 45,000 square foot distribution depot;
- A 20,000 square foot distribution depot in Richland, Mississippi;
- In Tatamy, Pennsylvania, a 100,300 distribution facility;
- A 730,000 square foot distribution facility in Champaign, Illinois; and
- In September 2013, Becknell purchased 52 acres of undeveloped land on the northwest side of Indianapolis which can support up to 600,000 square feet of build-to-suit development.
"For 2014, we will continue to strengthen our operating platform to enhance our ability to meet our customers' distribution needs nationwide. Additionally, we continue to pursue strategic acquisitions that create significant value and further improve the quality and cash-flow growth potential of our portfolio," said Mark Shapland, Executive Vice President - Chief Operating Officer.
About Becknell Industrial
Becknell Industrial specializes in the development, investment and management of industrial properties across the United States. The company currently owns interests in 104 properties totaling 10.3 million square feet. Vertically integrated, Becknell is responsible for every aspect of the project providing the decision-making authority and expertise to meet client expectations for a high-performance facility delivered on time and on budget. More information about Becknell Industrial can be found at becknellindustrial.com.