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 third quarter of 2012. The
company expects to file its quarterly report for the quarter ended
September 30, 2012 in the first week of November.
During the quarter, Terreno Realty acquired six industrial
properties (577,000 square feet) comprising nine buildings for an
aggregate purchase price of $74.4 million. These included the
acquisition of three multi-tenant industrial buildings in
Sunnyvale, California, spanning 172,000 square feet of space for
$33.7 million. The company also acquired two additional properties
in California - one in Redondo Beach (103,000 square feet) for
$14.2 million, and one in South San Francisco spanning 24,000
square feet of industrial space for $3.6 million.
Furthermore, Terreno Realty acquired a 75,000 square foot
industrial property in Doral, Florida for $4.2 million; a 66,000
square foot multi-tenant industrial property in Elkridge, Maryland
for $6.7 million; and two industrial buildings in Miami, Florida
totaling 138,000 square feet for $12.1 million.
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 issued over 1.8
million shares of 7.75% Series A Perpetual Preferred Stock to raise
net proceeds of $44.3 million.
At quarter-end, Terreno Realty owned 63 buildings aggregating 4.8
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 92.6% leased to 97 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
goods. In addition, available land in these markets is relatively
scarce, resulting in steep barriers for the development of new and
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 Underperform recommendation and a Zacks #5 Rank
(short-term Strong Sell rating) for
Winthrop Realty Trust
), one of the peers of Terreno Realty.
WINTHROP REALTY (FUR): Free Stock Analysis
TERRENO REALTY (TRNO): Free Stock Analysis
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