Terreno Realty Corporation Announces Quarterly Investment, Operating and Capital Markets Activity

Terreno Realty Corporation (NYSE:TRNO), an acquirer, owner and operator of industrial real estate in six major coastal U.S. markets, announced today its quarterly investment, operating and capital markets activity for the third quarter of 2014.

Acquisitions

During the third quarter of 2014, Terreno Realty Corporation acquired three industrial properties consisting of three buildings containing approximately 158,000 square feet for an aggregate purchase price of approximately $20.8 million. The third quarter acquisition activity was as follows:

• South Main II. One office building totaling approximately 34,000 square feet in Carson, California immediately adjacent to Terreno Realty Corporation’s existing three building property on South Main, allowing for future complimentary use and potential redevelopment. The South Main property is near the intersection of I-110 and the Artesia Freeway approximately equidistant from Los Angeles International Airport and the ports of LA and Long Beach. This building was 100% leased to one tenant at acquisition and was acquired for a purchase price of approximately $8.5 million;
• 79th Ave South. One industrial building totaling approximately 32,000 square feet in Kent, Washington. This property is located adjacent to Highway 167 in Kent Valley and provides 10 dock-high and two grade-level loading positions and was 52% leased to one tenant at acquisition. This building was acquired for a purchase price of approximately $2.8 million; and
• Auburn 1307. One industrial building totaling approximately 92,000 square feet in Auburn, Washington. This property provides 15 dock-high and seven grade-level loading positions and is adjacent to Highway 167 in Kent Valley. This building was 78% leased at acquisition to five tenants and was acquired for a purchase price of approximately $9.5 million.

Further, subsequent to September 30, 2014, Terreno Realty Corporation acquired two industrial distribution buildings for an aggregate purchase price of approximately $17.2 million. Year-to-date, Terreno Realty Corporation has acquired $118.4 million of property comprising 1.1 million square feet. Terreno Realty Corporation currently has approximately $25.6 million of acquisitions under contract and $46.6 million under letter of intent. There is no assurance that Terreno Realty Corporation will acquire the properties under contract or letter of intent because the proposed acquisitions are subject to the completion of satisfactory due diligence, closing conditions and, in the case of letters of intent, contracts.

Operations

As of September 30, 2014, Terreno Realty Corporation owned a total of 109 buildings aggregating approximately 7.7 million square feet, which were approximately 93.8% leased to 233 tenants. The leased percentage was 96.4% at June 30, 2014 and 88.6% at September 30, 2013. The same store portfolio of approximately 4.9 million square feet was 95.1% leased at September 30, 2014 as compared to 97.9% at June 30, 2014 and 91.3% at September 30, 2013.

Capital Markets Activity

During the third quarter of 2014, Terreno Realty Corporation issued no shares of stock under the Company’s at-the-market equity offering program.

Additional information is available on the company’s website at www.terreno.com. Terreno Realty Corporation expects to file its quarterly report on Form 10-Q for the quarter ended September 30, 2014 on or about November 3, 2014.

Terreno Realty Corporation is an acquirer, owner and operator of industrial real estate in six major coastal U.S. markets: Los Angeles; Northern New Jersey/New York City; San Francisco Bay Area; Seattle; Miami; and Washington, D.C./Baltimore.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. We caution investors that forward-looking statements are based on management’s beliefs and on assumptions made by, and information currently available to, management. When used, the words “anticipate”, “believe”, “estimate”, “expect”, “intend”, “may”, “might”, “plan”, “project”, “result”, “should”, “will”, and similar expressions which do not relate solely to historical matters are intended to identify forward-looking statements. These statements are subject to risks, uncertainties, and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control, including risks related to our ability to meet our estimated forecasts related to stabilized cap rates and those risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2013 and our other public filings. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or projected. We expressly disclaim any responsibility to update our forward-looking statements, whether as a result of new information, future events, or otherwise.