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TERRENO REALTY Corp. Reports Operating Results (10-Q)

November 12, 2010 | About:
10qk

10qk

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TERRENO REALTY Corp. (TRNO) filed Quarterly Report for the period ended 2010-09-30.

Terreno Realty Corp. has a market cap of $170.4 million; its shares were traded at around $18.38 .

Highlight of Business Operations:

Revenue. We earned rental revenues of approximately $0.6 million and $1.0 million for the three months ended September 30, 2010 and for the period from February 16, 2010 (commencement of operations) to September 30, 2010, respectively, representing income from the acquisition of 27 buildings, which we acquired from March 26, 2010 to September 29, 2010. We recognized straight-line rents and amortization of lease intangibles of $(71,000) and $(120,000) for the three months ended September 30, 2010 and for the period from February 16, 2010 (commencement of operations) to September 30, 2010, respectively.

General and administrative expenses. We recorded general and administrative expenses of approximately $1.2 million and $2.9 million for the three months ended September 30, 2010 and for the period from February 16, 2010 (commencement of operations) to September 30, 2010, respectively, which represents overhead costs of the Company and includes stock compensation amortization of approximately $226,000 and $556,000, respectively.

Acquisition costs. We recorded acquisition costs of approximately $1.6 million and $1.9 million for the three months ended September 30, 2010 and for the period from February 16, 2010 (commencement of operations) to September 30, 2010, respectively, which consisted of costs incurred in the pursuit and acquisition of properties.

On February 16, 2010, we completed both our initial public offering of 8,750,000 shares of our common stock and a concurrent private placement of an aggregate of 350,000 shares of our common stock to our executive officers at a price per share of $20.00. The net proceeds of our initial public offering were approximately $162.8 million after deducting the full underwriting discount of approximately $10.5 million and other estimated offering expenses of approximately $1.7 million. The underwriters agreed to forego the receipt of payment of $0.80 per share, or approximately $7.0 million in the aggregate, until such time as we purchase assets in accordance with our investment strategy described in our Annual Report on Form 10-K for the year ended December 31, 2009, with an aggregate purchase price (including the amount of any outstanding indebtedness assumed or incurred by us) at least equal to the net proceeds from our initial public offering (after deducting the full underwriting discount and other estimated offering expenses payable by us), at which time, we have agreed to pay the underwriters the remainder of the underwriting discount. We received net proceeds of approximately $7.0 million from our concurrent private placement. In the aggregate, we had approximately $169.8 million in cash available to execute our business strategy upon completion of our initial public offering and the concurrent private placement on February 16, 2010.

On February 16, 2010, we completed our initial public offering with the issuance of 8,750,000 shares of our common stock at a price of $20.00 per share and a concurrent private placement of 350,000 shares of our common stock at a price of $20.00 per share. The net proceeds were approximately $169.8 million.

As described above, the full amount of the underwriting discount in connection with our initial public offering was approximately $10.5 million. The underwriters agreed to forego the receipt of payment of $0.80 per share, or approximately $7.0 million in the aggregate, until such time as we purchase assets in accordance with our investment strategy described in our Annual Report on Form 10-K for the year ended December 31, 2009 with an aggregate purchase price (including the amount of any outstanding indebtedness assumed or incurred by us) at least equal to the net proceeds from our initial public offering (after deducting the full underwriting discount and other estimated offering expenses payable by us), at which time, we have agreed to pay the underwriters the remainder of the underwriting discount.

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