Fitch lifts Terreno Realty

Fitch Ratings said it upgraded the long-term issuer default ratings of Terreno Realty Corp. (Terreno) and its operating subsidiary, Terreno Realty, LLC to BBB+ from BBB.

“Fitch expects Terreno's REIT leverage, defined as Fitch-adjusted net debt before preferred stock/recurring operating EBITDA, to sustain at the low 3x level over the forecast horizon. Leverage was 2.7x at YE 2023, which is strong for the BBB category,” the agency said in a press release.

Late last month, Terreno sold 5.5 million shares at $62.50 per share. It plans to use the proceeds for acquisitions, reducing or eliminating the need to borrow. As of Dec. 31, no borrowings were outstanding under

Terreno’s $400 million revolving credit facility. Terreno’s $100 million of 3.75% senior unsecured notes mature in July and none are due in 2025.

The outlook is stable.

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