Terreno Realty Corporation TRNO has provided insights on its first-quarter 2019 operating, investment and capital market activities.
Terreno’s assets experienced a solid demand for space on the back of improving fundamentals of industrial markets. This helped the company properties to be 98.1% leased as of Mar 31, 2019.
The same-store portfolio of approximately 12 million square feet was 99% leased as of Mar 31, 2019, compared with 99.1% at the end of the prior quarter. Further, cash rents on new and renewed leases for 1 million square feet of space commencing during the quarter increased 14.5%.
In fact, in the past three months, shares of this Zacks #2 (Buy) Ranked company have outperformed the industry. While its shares have gained 18.7%, the industry rallied 13.1% during this period.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In sync with its strategy of acquiring industrial properties in strategic locations, this San Francisco-based real estate investment trust (REIT) purchased three industrial properties and two improved land parcels in the first quarter, for a total price of $63.1 million.
Specifically, it purchased a 28,000-square-foot property at 48 3rd Street and 286 Central Avenue for approximately $14.1 million. The company also acquired a transshipment building at 56-85 49th Street in Maspeth Queens, NY, for $24 million.
On the disposition front, Terreno sold an industrial distribution building — situated in Corona, CL— covering 90,000 square feet, for $12.4 million. It was purchased in 2014 for nearly $7.8 million.
During the quarter, Terreno raised $82.3 million in gross proceeds by issuing around 1.98 million shares of common stock under the company’s at-the-market equity offering program. No shares were repurchased by the company. Additionally, it reduced balance under its senior secured loan to nearly $16 million.
Notably, industrial REITs will scale new heights, with a recovering economy and job-market gains, as well as elevated consumption levels. Moreover, with a healthy manufacturing environment and high business inventories, the demand for warehouse and logistics real estate is anticipated to be healthy, giving a significant impetus to industrial REITs like Terreno, Duke Realty DRE, Prologis Inc. PLD and Liberty Property Trust LPT.
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