(INDIANAPOLIS, March 12, 2018) – Becknell Industrial announced today financial results for the year ending December 31, 2017.
Dan Harrington, Chief Executive Officer and President, said, “2017 proved to be another strong year for Becknell operationally and we stand poised for continued growth and success in 2018. We increased in-service occupancy to over 96 percent and achieved 5.0 percent growth in same property net operating income on a cash basis. Leasing for the year was phenomenal, with over 3.7 million square feet signed. Our development platform also continued to generate robust growth, exceeding last year’s record level development pipeline with 3.75 million square feet and 18 projects underway at December 31, 2017.”
In-Service Property Results and Leasing Activity
As of December 31, 2017, Becknell owned and controlled 140 in-service properties, totaling 17.0 million square feet with an occupancy of 96.1 percent occupied on a square foot basis.
During 2017, the Company signed new leases totaling 853,000 square feet with a weighted average lease term of 6.0 years. The Company’s tenant retention rate was 75.8 percent for the year ending December 31, 2017, renewing nearly 1.8 million square feet of leases with leasing spreads of 14.6 percent on average rents.
During 2017, Becknell Industrial placed in-service 8 developments totaling $117.6 million. Combined, these developments include nearly 1.4 million square feet and have a weighted average lease term of 11.2 years.
As of December 31, 2017, the Company had 18 additional projects under active development totaling nearly 3.7 million square feet that are 28% pre-leased with a total projected investment of $261.2 million.
Mark Shapland, Chief Operating Officer and Executive Vice President, said, ” Becknell continues to be a valued partner with our clients as indicated by our ability to renew 76 percent of our expiring leases with cash rents increasing nearly 6 percent. Of the 560,000 square feet that we did not renew, we were able to immediately lease 65 percent of this space to new tenants, increasing rents by 5.2 percent.”
During 2017, Becknell completed the acquisition of two properties totaling nearly 320,500 square feet.
During 2017, Becknell Industrial sold 6 properties totaling $24.6 million. Combined, these dispositions include more than 415,000 square feet.
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 158 properties totaling nearly 21 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.
Shona L. Bedwell