Terreno Realty Corporation
(
TRNO
), a real estate investment trust (REIT), has recently announced an
equity offer of 4 million shares at $14.25 each to raise cash to
increase its liquidity. The company has also decided to grant a
30-day option to the underwriters to purchase an additional 0.6
million shares to cover any over-allotments.
The Goldman Sachs Group, Inc.
(
GS
) - a full-service global investment banking and securities firm,
and KeyBanc Capital Markets Inc. - the investment banking division
of
KeyCorp
(
KEY
), are acting as the joint book-running managers for the
offering.
Terreno Realty intends to utilize the proceeds to repay a part
of its debt and fund potential acquisitions. Over the years, the
company has resisted from pursuing ground-up development or land
investments and instead focused on acquiring high-quality assets.
The continuous acquisition binge is also part of the long-term
strategy of the company to own functional and flexible buildings in
infill locations that can be modified to accommodate single and
multiple tenants at discounts to replacement cost.
San Francisco-based Terreno Realty owns and operates industrial
real estate properties primarily in six major coastal markets of
the U.S. These include the high barrier-to-entry markets of Los
Angeles, Northern New Jersey/New York City, San Francisco Bay Area,
Seattle, Miami and Washington D.C./Baltimore.
Each of the locations in which Terreno Realty has a significant
presence is characterized by a well-established transportation
network - seaports, airports, highways and railways that are
essential for the swift distribution of goods. In addition,
available land in these markets is scarce, resulting in steep
barriers for the development of new and competing properties.
We have a 'Neutral' rating on Terreno Realty, which presently
has a Zacks #3 Rank translating into a short-term 'Hold'
rating.
GOLDMAN SACHS (
GS
): Free Stock Analysis Report
KEYCORP NEW (
KEY
): Free Stock Analysis Report
TERRENO REALTY (
TRNO
): Free Stock Analysis Report
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