Terreno Realty Launches New $500M At-The-Market Equity Offering Program

summarizeSummary

Terreno Realty Corporation announced a new 'at the market' equity offering program to sell up to $500 million of common stock for general corporate purposes, replacing a prior program that raised over $464 million.

check_boxKey Events

• New ATM Equity Offering Program

  The company commenced a new 'at the market' (ATM) equity offering program to sell up to $500,000,000 of its common stock from time to time.

• Replaces Prior Program

  This new program replaces a previous ATM program under which the company issued approximately 6.98 million shares, generating gross proceeds of about $464.4 million at a weighted average price of $66.56 per share.

• Use of Proceeds

  Net proceeds from the offering are intended for general corporate purposes, which may include future acquisitions, developments, redevelopments, and repayment of indebtedness.

• Sales Agents Appointed

  Terreno Realty entered into equity distribution agreements with multiple sales agents, who will receive a commission of up to 2.0% of the gross sales price of shares sold.

auto_awesomeAnalysis

Terreno Realty Corporation has initiated a substantial 'at the market' (ATM) equity offering program, allowing it to sell up to $500 million in common stock. This move, following the near-complete utilization of a previous ATM program that raised over $464 million, indicates a continuous strategy for capital generation. While ATM offerings can create an overhang on the stock due to potential dilution, raising capital for a REIT is a common practice to fund growth initiatives like acquisitions and developments, as well as to manage debt. The timing of this offering, with the stock trading near its 52-week high, is strategically beneficial for the company as it allows them to raise capital at a favorable price, minimizing the dilutive impact per dollar raised. Investors should monitor the pace and pricing of future share sales under this program.