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Terreno Realty on Acquisition Spree, Buys Industrial Property

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Terreno Realty Corporation (TRNO - Free Report) recently announced the company’s latest industrial property acquisition in Hayward, CA, as part of its efforts to boost the industrial portfolio. The property has been purchased for approximately $9 million.

The single-building property consists of a 54,000-square-foot distribution center built on 3.4 acres. It is situated on the 30991 San Clemente Street. Further, this distribution building includes ample parking space for 89 cars, in addition to 16 dock-high and two grade-level loading positions. Also, the property is fully leased out to three occupants, out of which two leases will end by February 2020.

Its proximity to Interstate 880 between California Highways 84 and 92 will help drive demand for the property. Moreover, the estimated stabilized cap rate of the property is 4.6%, which indicates a decent return on investment.

Notably, the industrial real estate asset category has been in demand owing to a recovering economy and job market, prevailing e-commerce boom and a healthy manufacturing environment.

With a portfolio of 204 buildings, comprising 13.3 million square feet of rentable area, Terreno Realty is expected to capitalize on this favorable trend. In first-half 2018, the company made five industrial acquisitions comprising approximately 468,000 square feet of space. The company has a robust portfolio with properties spread across six major coastal cities in the United States. It focuses on acquiring functional buildings at in-fill locations, which are situated near highly populated areas and have high-volume distribution points.    

Encouragingly, over the past six months, shares of this Zacks Rank #3 (Hold) company have outperformed the industry. While the stock has gained 8%, the industry has rallied 7.1% during this period.



Some better-ranked stocks in the real estate industry include Corrections Corp of America , Life Storage, Inc. and Clipper Realty Inc. (CLPR - Free Report) . While Corrections Corp of America flaunts a Zacks Rank of 1 (Strong Buy), Life Storage and Clipper Realty carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Corrections Corp of America’s Zacks Consensus Estimate for current-year FFO per share moved 2.2% north in 60 days’ time. The stock has climbed 17.5% over the past three months.

Life Storage’s Zacks Consensus Estimate for 2018 funds from operations (FFO) per share inched up 1.3% over the last 60 days. Also, its shares have gained 5.9% in the past three months.

Clipper Realty’s Zacks Consensus Estimate for 2018 FFO per share moved 7% north over the last 60 days. The company’s shares have rallied nearly 21.9% in three months’ time.

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