Terreno Realty Corporation Announces Offering of 5,000,000 Shares of Common Stock
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Insights
The announcement by Terreno Realty Corporation of a new stock offering is a strategic move aimed at raising capital for expansion and development. The decision to issue 5 million shares, with an option for underwriters to purchase an additional 750,000, indicates an aggressive approach to funding their growth initiatives. This is a common practice for companies seeking to capitalize on their market position and invest in future growth.
Investors should note that such offerings can dilute existing shares, potentially impacting the stock's price. However, if the capital is used effectively to acquire and develop properties that yield a high return on investment, the long-term benefits could outweigh the short-term dilution. The focus on industrial real estate in major coastal markets aligns with the current trend of e-commerce growth, which demands more logistics and distribution centers. The company's targeted areas, including New York City and the San Francisco Bay Area, are prime markets with limited space, suggesting a strategic choice likely to yield significant rental income.
Terreno Realty's emphasis on industrial properties in coastal regions reflects a broader industry trend where such assets are highly prized due to their pivotal role in supply chains. The acquisition of a portfolio of 28 buildings totaling 1.245 million square feet demonstrates a targeted investment in high-demand areas. Given the scarcity of industrial space in these markets, Terreno's strategy may lead to a strong competitive advantage.
Their planned use of proceeds for acquisitions and development also suggests confidence in the industrial real estate sector's resilience and growth potential. With e-commerce driving demand for warehouse and distribution spaces, Terreno's portfolio is likely to experience favorable occupancy rates and rental price appreciation. This could signal positive future cash flows and an enhanced asset base for the company, potentially attracting investors looking for exposure to real estate without the direct risks of property management.
From a legal standpoint, the offering is being conducted under an effective shelf registration statement, which provides Terreno Realty with the flexibility to sell securities over a period of time. This method is efficient and allows the company to act quickly in response to market conditions and funding needs. The mention of a prospectus and prospectus supplement is standard, ensuring transparency and compliance with the Securities and Exchange Commission's regulations.
It's important for investors to understand that such offerings are subject to strict legal frameworks to protect both the company and the investors. The disclaimer in the press release highlights the regulatory aspect, ensuring that the offering complies with state and federal laws. The absence of an offer to sell in jurisdictions where it would be unlawful until proper registration or qualification is a reminder of the meticulous legal processes involved in public offerings.
The Company intends to use the net proceeds from the offering for future acquisitions, including the acquisition of a portfolio of industrial properties comprised of 28 buildings totaling 1,245,000 square feet located in
Goldman Sachs & Co. LLC and KeyBanc Capital Markets Inc. are serving as underwriters for the offering.
The offering of these securities is being made pursuant to an effective shelf registration statement. The offering will be made only by means of a prospectus and prospectus supplement. A copy of the prospectus and prospectus supplement relating to these securities may be obtained, when available, from the website of the Securities and Exchange Commission or by contacting Goldman Sachs & Co. LLC, Attn: Prospectus Department, 200 West Street,
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About the Company
Terreno Realty Corporation acquires, owns and operates industrial real estate in six major coastal
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. The Company cautions 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”, “potential”, “future” 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 the Company’s control. Factors that could materially affect results of the Company include those risk factors contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, the Company’s preliminary prospectus supplement relating to the offering under the section titled “Risk Factors”, and the Company’s 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. The Company expressly disclaims any responsibility to update its 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.
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Jaime Cannon
415-655-4580
Source: Terreno Realty Corporation
FAQ
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