Terreno Realty Corporation
), a real estate investment trust (REIT), has recently provided an
update of the various acquisitions, operating and other capital
market activities it has executed in the second quarter of 2012.
The company expects to file its quarterly report for the quarter
ended June 30, 2012 in the first week of August.
During the quarter, Terreno Realty acquired two industrial
properties in California for an aggregate purchase price of $68.5
million. These included the acquisition of five industrial
buildings in Commerce, California, spanning 545,000 square feet of
space, for $52.4 million. The company also acquired a property in
Whittier, California, spanning 162,000 square feet of industrial
space, for $16.1 million.
Subsequent to the quarter-end, Terreno Realty acquired two R&D
buildings and one distribution building in Sunnyvale, California.
The properties were purchased for $33.7 million and had an
aggregate of approximately 172,000 square feet of industrial space.
The continuous acquisition spree is part of the long-term strategy
of the company to abstain from pursuing ground-up development or
land investments, and instead own functional and flexible buildings
that can be modified to accommodate single and multiple tenants at
discounts to replacement cost.
During the just-completed quarter, Terreno Realty obtained a $39.8
million non-recourse mortgage loan at a fixed annual interest rate
of 3.65%. In order to further augment its liquidity, the company
also extended the borrowing capacity of its existing $80.0 million
senior revolving credit facility to $100 million by exercising its
At quarter-end, Terreno Realty owned 54 buildings aggregating 4.2
million square feet in 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. The properties were
approximately 91.3% leased to 85 tenants.
San Francisco-based Terreno Realty owns and operates industrial
real estate properties primarily in six major coastal markets of
the U.S. Each of the locations in which Terreno Realty has a
significant presence is characterized by a well-established
transportation network. This includes seaports, airports, highways
and railways that are essential for the swift distribution of
In addition, available land in these markets is scarce,
resulting in steep barriers for the development of new and
WINTHROP REALTY (FUR): Free Stock Analysis
TERRENO REALTY (TRNO): Free Stock Analysis
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We have a Neutral rating on Terreno Realty, which presently has a
Zacks #3 Rank that translates into a short-term Hold rating.
However, we have an Outperform recommendation and a Zacks #1 Rank
(short-term Strong Buy rating) for
Winthrop Realty Trust
), one of the peers of Terreno Realty.