INDIANAPOLIS, IN— Becknell Industrial announced today financial results for the year ending December 31, 2016.
Dan Harrington, Chief Executive Officer and President, said, “2016 proved to be an outstanding year for Becknell Industrial as we executed record levels of development, revenues and return on investment. The investment in our operating platform over the past five years has produced exceptional expansion. In fact, over the last five years, Becknell’s annual volume of development starts has grown by more than 400 percent with total revenues increasing by more than 380 percent. Our prospects and outlook are even greater for 2017. We wish to express our gratitude to our customers and associates for the support and confidence in Becknell.”
In-Service Property Results and Leasing Activity
As of December 31, 2016, Becknell owned and controlled 136 in-service properties, totaling 15.0 million square feet with an occupancy of 95.2 percent occupied on a square foot basis.
During 2016, the Company signed new leases totaling 451,000 square feet with a weighted average lease term of 8.2 years. The Company’s tenant retention rate was 97.0 percent for the year ending December 31, 2016, renewing nearly 1.4 million square feet of leases with leasing spreads of 4.0 percent on average rents.
Investment Activity
Development
During 2016, Becknell Industrial placed in-service 11 developments totaling $123.6 million. Combined, these developments include nearly 1.8 million square feet and have a weighted average lease term of 9.6 years.
Market, Tenant, Square Feet , Occupancy
Hobart, IN Calpipe / Foremost 159,813 100%
Whitestown,IN Cummins 323,000 53%
Whitestown, IN Stephen Gould / Alliance Health 156,000 100%
Lake Zurich,IL Bimbo Bakeries, USA 20,000 100%
Bowling Green, KY Graham Packaging 245,000 100%
New Hudson, MI Marada Industries (Magna International) 151,686 100%
Greenville, SC Decostar (Magna International) 161,618 100%
Greenville, SC Proper Polymers 49,125 100%
Spartanburg, SC Phillips Feed 201,500 100%
Henrico, VA Premier Fixtures 216,000 100%
Sheboygan, WI Carl Buddig & Co. 104,000 100%
As of December 31, 2016, the Company had 10 additional projects under active development totaling nearly 2.2 million square feet that are 56% pre-leased with a total projected investment of $163.9 million.
Market, Tenant, Square Feet, Occupancy
Aurora, CO Best Buy 251,680 100%
Davie, FL Spec 130,350 0%
Orlando, FL Sherwood / Mattress Firm 478,400 65%
Hobart, IN NB Coatings 124,800 100%
Mt. Comfort, IN Landsberg Orora 100,000 100%
Plainfield, IN Spec 336,000 0%
Whitestown, IN CSL Plasma 68,792 100%
Belvidere, IL Nascote Industries (Magna International) 221,844 100%
Grove City, OH Spec 322,000 0%
Westchester, OH Polymet / Kosei 138,750 100%
Mark Shapland, Chief Operating Officer and Executive Vice President, said, “Operationally, Becknell executed another successful year highlighted by excellent rent and occupancy growth. Tenant demand remains strong and we are pleased to continue to retain our long-term tenant base, as well as welcome new high quality tenants to the Becknell family. Our development platform also continues to significantly exceed expectations, with our pipeline volume reaching an all-time high in 2016.”
Acquisitions
During 2016, Becknell completed the acquisition of a 113,500-square-foot distribution facility located in Wichita, Kansas that fully leased to American Tire Distributors, the nation’s leading tire distributor serving customers from more than 115 distribution centers across the U.S.
About Becknell Industrial
Becknell Industrial specializes in the development, investment and management of industrial properties across the United States. The company currently owns interests in 147 properties totaling nearly 18 million square feet. Vertically integrated, Becknell is responsible for every aspect of the project providing the decision-making authority and expertise to meet client expectations for a high-performance facility delivered on time and on budget. More information about Becknell is available at www.becknellindustrial.com.