Terreno Realty Corporation Announces Quarterly Operating, Investment 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 operating, investment and capital markets activity for the first quarter of 2020.

Operating

As of March 31, 2020, Terreno Realty Corporation owned 219 buildings aggregating approximately 13.4 million square feet and 21 improved land parcels consisting of approximately 82.2 acres. In addition, Terreno Realty Corporation had four properties under redevelopment that upon completion will contain approximately 505,000 square feet:

• The operating portfolio, excluding four properties under redevelopment, was 97.8% leased at March 31, 2020 to 498 tenants as compared to 96.8% at December 31, 2019 and 98.1% at March 31, 2019;
• The same-store portfolio of approximately 12.5 million square feet was 98.1% leased at March 31, 2020 as compared to 97.9% at December 31, 2019 and 98.2% at March 31, 2019;
• The improved land portfolio of 21 parcels totaling approximately 82.2 acres was 96.7% leased at March 31, 2020 as compared to 92.0% at December 31, 2019 and 86.6% at March 31, 2019;
• Cash rents on new and renewed leases totaling approximately 0.6 million square feet commencing during the first quarter increased approximately 21.9% with a tenant retention ratio of 85.7%; and
• Executed two full-building leases totaling 283,000 square feet and one lease for a 5.4-acre improved land parcel. In South Brunswick, New Jersey, the Company leased 190,000 square feet to a manufacturer of LED lighting products and electrical fittings that will commence May 1, 2020 and was previously leased through March 31, 2020. In Oakland, California, the Company leased a vacant building totaling 93,000 square feet to a lithium extraction technology and services company that commenced March 31, 2020. In Carson, California, the Company leased a vacant 5.4-acre improved land parcel to a leading national ground delivery Company that commenced March 20, 2020.

Terreno Realty Corporation is headquartered in San Francisco and its employees have been working remotely in compliance with shelter-in-place orders mandated across the Bay Area on March 16, 2020. While the impact of the COVID-19 pandemic on our business is not possible to predict accurately, the Company is working with our customers who have been forced to close during the pandemic to, on a case-by-case basis, provide rent deferments while those customers seek emergency funding from the U.S. Small Business Administration and other state and local funding programs. In addition, the Company has been working with local municipalities and charitable organizations to donate space within our portfolio for relief efforts.

Investment

During the first quarter of 2020, Terreno Realty Corporation acquired two industrial properties consisting of one building containing approximately 66,000 square feet and one improved land parcel containing approximately 2.7 acres for an aggregate purchase price of approximately $29.7 million. The first quarter investment activity was as follows:

• 2310 East Gladwick Street: One industrial distribution building containing approximately 66,000 square feet on 3.7 acres in Rancho Dominquez, California. The property, located between Los Angeles International Airport and the ports of LA and Long Beach, provides 13 dock-high and two grade-level loading positions, and parking for 81 cars. The property was acquired 100% leased to one tenant for a purchase price of approximately $18.0 million with an estimated stabilized cap rate of 3.6%; and
• 1691 Old Bayshore Highway: One improved land parcel of approximately 2.7 acres adjacent to the intersection of U.S. Highway 101 and I-880 in San Jose, California, and less than one mile from Norman Y. Mineta San Jose International Airport. The property was acquired 100% leased to one tenant for a purchase price of approximately $11.8 million with an estimated stabilized cap rate of 5.0%.

As of March 31, 2020, Terreno Realty Corporation had four properties under redevelopment (SoDo Row North, SoDo Row South, 6^th Avenue South, and Kent 192, all in Seattle) that upon completion will contain approximately 505,000 square feet with a total expected investment of approximately $111 million.

Terreno Realty Corporation has two acquisitions under contract totaling $10.2 million comprising one 2.8-acre improved land parcel and one building containing 13,000 square feet. Additionally, the Company has three properties under contract for sale for approximately $54.0 million comprising approximately 340,000 square feet. There is no assurance that Terreno Realty Corporation will acquire or dispose of properties under contract because the proposed acquisitions and dispositions are subject to the completion of satisfactory due diligence and closing conditions.

Capital Markets

During the first quarter of 2020, Terreno Realty Corporation used a portion of the proceeds from its December 2019 issuance of $100 million senior unsecured notes to repay a $32 million mortgage loan with a 2020 maturity. The Company has no remaining debt maturities in 2020, an $11 million mortgage loan maturing in 2021, and no balance outstanding on its $250 million revolving credit facility. In addition, the Company has a cash balance of approximately $70 million.

During the first quarter of 2020, Terreno Realty Corporation issued 427,027 shares of common stock with a weighted average offering price of $53.37 per share, receiving gross proceeds of $22.8 million under the Company's at-the-market equity offering program. Terreno Realty Corporation did not repurchase any shares of common stock pursuant to the Company's share repurchase authorization.

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 period ended March 31, 2020 on or about May 6, 2020.

Terreno Realty Corporation acquires, owns and operates 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.

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," "seek," "target," "see," "likely," "position," "opportunity," "outlook," 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, the impact of the COVID-19 pandemic on our business, our tenants and the national and local economies, and those risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2019 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, except as required by law. Accordingly, investors should use caution in relying on past forward-looking statements, which are based on results and trends at the time they are made, to anticipate future results or trends.