Terreno Realty Q3 Developments: Attained 98.3% Occupancy, No Debt Maturities In 2023 & More

Terreno Realty Corp TRNO disclosed major operating and financial developments of Q3 FY23. 

Leasing: As of September 30, 2023, the company's operating portfolio was 98.3% leased to 563 tenants, the same-store portfolio (around 13.2 million square feet) was 98.5% leased, and the improved land portfolio of 46 parcels (about 165.8 acres) was 96.3% leased. 

Also, TRNO witnessed a 38.9% increase in cash rents on new and renewed leases, with a 48.6% rise in cash rents on new and renewed leases (excluding one fixed-rate lease renewal). 

Acquisition & Divestiture: In Q3, TRNO acquired one 4.9-acre property in Santa Ana (California), which will be redeveloped, for about $14.8 million.

Year-to-date, the company bought five properties spanning around 681,000 square feet and a 121-acre project entitled to 2.2 million square feet of industrial distribution buildings for around $410.8 million.

As of September 30, 2023, the company had eight properties under development or redevelopment with an expected investment of about $336.1 million.

Also, TRNO owned about 62.7 acres of land entitled for the future development of six buildings totaling around 1.1 million square feet. Moreover, TRNO had about $76.3 million worth of acquisitions under contract.

On the other hand, post the end of September 2023, TRNO sold one fully leased property in Maryland for around $18.0 million.

Financing: In Q3, the industrial REIT issued common shares at a weighted average offering price of $60.78 per share under the at-the-market equity offering program and garnered gross proceeds of $95.7 million.

As of September 30, 2023, the company had no outstanding borrowings under its revolving credit facility worth $400 million and no debt maturities in 2023.

Price Action: TRNO shares traded higher by 0.53% at $58.03 on the last check Tuesday.