Back to top

Analyst Blog

San Francisco-based Terreno Realty Corporation (TRNO - Snapshot Report) announced the acquisition of an industrial property in Elkridge, Md. The company shelled out approximately $16.7 million for this purchase. Spanning 349,000 square feet across 17.9 acres, the two multi-tenant industrial distribution buildings are 64% leased currently.

The two buildings – 6675 Amberton Drive and 6660 Santa Barbara Road – enjoy locational advantage for being close to I-95, US Route 1 and Maryland Route 100 in the Baltimore/Washington Corridor. The two buildings offer 107 dock-high and 10 drive-in doors. The property’s estimated stabilized cap rate is 8.0%.

We view the acquisition as a strategic fit for Terreno Realty as it would help bolster its strong tenant base. Moreover, it will likely prove accretive to the earnings going forward and facilitate top-line improvement.
 
Only last month, Terreno Realty purchased a portfolio comprising 6 buildings in Doral, Fla. The company paid $23.7 million for this portfolio that spans 307,000 square feet. These multi-tenant distribution buildings were 70% occupied at the time of purchase.

Terreno Realty owns and operates industrial real estate properties primarily in 6 major coastal markets of the U.S. – the high barriers-to-entry markets of Los Angeles, Northern New Jersey, San Francisco Bay Area, Seattle, Miami and Washington D.C. Lately, Terreno Realty has been active in capitalizing on opportunities to strengthen its foothold in these areas and opted for acquisitions as well as lease extension and renewal deals.

Terreno Realty currently holds a Zacks Rank #3 (Hold). However, REITs that are performing better than the company include Sunstone Hotel Investors Inc. (SHO - Snapshot Report) carrying a Zacks Rank #1(Strong Buy), and Host Hotels & Resorts Inc. (HST - Analyst Report) and Diamondrock Hospitality Co. (DRH - Snapshot Report), both of which have a Zacks Rank #2 (Buy).
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%