INDIANAPOLIS, March 03, 2021 (GLOBE NEWSWIRE) — Becknell Industrial announced today financial results for the year ending December 31, 2020.
Dan Harrington, Chief Executive Officer and President, said, “Becknell successfully navigated the tremendous uncertainty and disruption from the pandemic and 2020 proved to be another outstanding year for our Company. Despite experiencing a market stoppage of new project execution from March to May, we were able to reach a record level of new development starts totaling more than $520 million of project cost. We added several new institutional joint venture capital partners as well as expanded our client list of national companies while increasing our brand awareness.”
During 2020, Becknell Industrial started 16 new development projects, including 6 build-to-suit projects, totaling $330.7 million and 10 speculative projects totaling $189.5. Combined, these developments include 5.5 million square feet and have a weighted average lease term for new leases of approximately 10 years.
As of December 31, 2020, the Company had 22 projects under active development totaling more than 6.6 million square feet that are 46.6% pre-leased with a total projected investment of $569.5 million.
In-Service Property Results and Leasing Activity
As of December 31, 2020, Becknell owned and controlled 163 in-service properties, totaling 23.0 million square feet with an occupancy of 96.3 percent occupied.
During 2020, the Company signed new leases totaling 6.5 million square feet with a weighted average lease term of 10.2 years. The Company’s tenant retention rate was 80.7 percent for the year ending December 31, 2020, renewing over 2.0 million square feet of leases with leasing spreads of 11.5 percent on average rents and 6.2 percent cash on cash from last rent.
Mark Shapland, Chief Operating Officer and Executive Vice President, said, “Our relationships with our customers remain strong as evidenced by our impressive tenant retention rate. Becknell also continues to capitalize on strong demand for industrial space across the United States, executing a record 8.5 million square feet of new leases, while retaining in-service property occupancy of 96.3 percent. We are fortunate to have a talented resilient team of associates providing dedicated service to our customers.”
Capital and Balance Sheet Management
Matt Cohoat, Chief Financial Officer and Executive Vice President, said, “Our balance sheet has never been stronger as 2020 was the culmination of multi-year strategic initiatives key to the long-term plans of Becknell providing the liquidity to continue to grow and expand in the coming years. We added four major institutional partners in 2020 and look forward to expanding with these new ventures on future projects and also to establishing new partnerships in the coming years.”
Additionally, Becknell implemented a Capital Markets Team, including the hiring of Ben Paolone as Head of Capital Markets. The Capital Markets division provides Becknell the internal infrastructure and expertise to source project capital with new and existing capital partners to expand and invest in industrial real estate 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 185 properties totaling more than 29.6 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