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As part of its acquisition-driven growth strategy, Terreno Realty Corporation (TRNO - Free Report) recently shelled out $26.3 million for the purchase of an industrial property in Kearny, NJ.
Adjacent to the Exit 15E of the New Jersey Turnpike, this 5.4-acre improved land parcel at 97 Third Street is 51% leased to two tenants. The estimated stabilized cap rate of the property is 3.1%.
The industrial real estate market has been witnessing solid fundamentals, as demand has been shooting up amid an e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies. In addition to the fast adoption of e-commerce, the logistics real estate is anticipated to benefit from a likely increase in the inventory levels post the global health crisis, offering scope to industrial landlords, including Terreno Realty, Duke Realty , Prologis (PLD - Free Report) and Rexford Industrial Realty, Inc. (REXR - Free Report) , among others, to enjoy a favorable market environment.
Terreno Realty is also banking on such scopes and is focused on expanding its portfolio on acquisitions. It targets functional assets at in-fill locations, which enjoy high-population densities and are located near high-volume distribution points.
Recently, the company announced shelling out $17.9 million for the buyout of an industrial property in Carlstadt, NJ. This buyout comes after the company’s recent purchase of an industrial property in Hayward, CA, for $8.3 million.
Backed by such efforts, the company is well poised to enhance its portfolio in the six major coastal U.S. markets — Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington, DC — which display solid demographic trends and witness healthy demand for industrial real estates.
However, with the asset category being attractive in these challenging times, there is a development boom in a number of markets. This high supply is likely to intensify competition and curb pricing power.
In the past three months, the company’s shares have gained 7.9% compared with its industry's rally of 9%. However, the recent estimate revision trend of 2021 funds from operations (FFO) per share indicates a favorable outlook for the company, having been revised 2.4% upward over the past month.
Image: Bigstock
Terreno Realty (TRNO) Acquires Kearny Assets, Enhances Portfolio
As part of its acquisition-driven growth strategy, Terreno Realty Corporation (TRNO - Free Report) recently shelled out $26.3 million for the purchase of an industrial property in Kearny, NJ.
Adjacent to the Exit 15E of the New Jersey Turnpike, this 5.4-acre improved land parcel at 97 Third Street is 51% leased to two tenants. The estimated stabilized cap rate of the property is 3.1%.
The industrial real estate market has been witnessing solid fundamentals, as demand has been shooting up amid an e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies. In addition to the fast adoption of e-commerce, the logistics real estate is anticipated to benefit from a likely increase in the inventory levels post the global health crisis, offering scope to industrial landlords, including Terreno Realty, Duke Realty , Prologis (PLD - Free Report) and Rexford Industrial Realty, Inc. (REXR - Free Report) , among others, to enjoy a favorable market environment.
Terreno Realty is also banking on such scopes and is focused on expanding its portfolio on acquisitions. It targets functional assets at in-fill locations, which enjoy high-population densities and are located near high-volume distribution points.
Recently, the company announced shelling out $17.9 million for the buyout of an industrial property in Carlstadt, NJ. This buyout comes after the company’s recent purchase of an industrial property in Hayward, CA, for $8.3 million.
Backed by such efforts, the company is well poised to enhance its portfolio in the six major coastal U.S. markets — Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington, DC — which display solid demographic trends and witness healthy demand for industrial real estates.
However, with the asset category being attractive in these challenging times, there is a development boom in a number of markets. This high supply is likely to intensify competition and curb pricing power.
In the past three months, the company’s shares have gained 7.9% compared with its industry's rally of 9%. However, the recent estimate revision trend of 2021 funds from operations (FFO) per share indicates a favorable outlook for the company, having been revised 2.4% upward over the past month.
Terreno Realty currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.