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Terreno Realty (TRNO) Buys $6.3M Property in San Francisco
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Continuing with its acquisition-driven growth strategy in the second half of 2020, Terreno Realty Corporation (TRNO - Free Report) purchased an industrial property based in South San Francisco, CA, on Jul 10, 2020, for $6.3 million.
The acquired industrial building spans 22,000 square feet of space on 0.7 acres of land. The property sits at 179 Starlite Street and is adjacent to Highway 101 between the city of San Francisco and San Francisco International Airport. This location likely enabled the property to be fully-leased to a tenant.
Moreover, it offers one grade-level and two dock-high loading positions as well as parking space for 15 cars. The estimated stabilized cap rate of the building is 4.7%.
Notably, Terreno is focused on expanding its portfolio on acquisitions. It targets functional buildings at in-fill locations, which enjoy high-population densities and are located near high-volume distribution points. Through such efforts, the company is well-poised to fortify 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.
During the second quarter, the company purchased two industrial properties for $10.1 million. With this, its acquisitions in the first half of 2020 totaled four properties for $39.8 million.
However, the pandemic’s adverse impact on the economy will likely thwart the demand for space in the near term. In fact, the company recently reported a sequential decline of 180 basis points (bps) in second-quarter occupancy at its operating portfolio.
Moreover, Terreno’s tenants have been hard hit due to the pandemic, impacting their ability to meet rental obligations. Amid this, rent relief and deferrals are added concerns for the company.
Shares of this Zacks Rank #3 (Hold) company have rallied 7.9% over the past year against the industry’s decline of 7.5%.
Alexandria Real Estate Equities, Inc.’s (ARE - Free Report) FFO per share estimates for 2020 have been revised marginally upward to $7.32 over the past week. It currently carries a Zacks Rank of 2.
Cousins Properties Incorporated’s (CUZ - Free Report) Zacks Consensus Estimate for 2020 FFO per share has been revised marginally upward to $2.74 over the past month. The company currently carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Terreno Realty (TRNO) Buys $6.3M Property in San Francisco
Continuing with its acquisition-driven growth strategy in the second half of 2020, Terreno Realty Corporation (TRNO - Free Report) purchased an industrial property based in South San Francisco, CA, on Jul 10, 2020, for $6.3 million.
The acquired industrial building spans 22,000 square feet of space on 0.7 acres of land. The property sits at 179 Starlite Street and is adjacent to Highway 101 between the city of San Francisco and San Francisco International Airport. This location likely enabled the property to be fully-leased to a tenant.
Moreover, it offers one grade-level and two dock-high loading positions as well as parking space for 15 cars. The estimated stabilized cap rate of the building is 4.7%.
Notably, Terreno is focused on expanding its portfolio on acquisitions. It targets functional buildings at in-fill locations, which enjoy high-population densities and are located near high-volume distribution points. Through such efforts, the company is well-poised to fortify 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.
During the second quarter, the company purchased two industrial properties for $10.1 million. With this, its acquisitions in the first half of 2020 totaled four properties for $39.8 million.
However, the pandemic’s adverse impact on the economy will likely thwart the demand for space in the near term. In fact, the company recently reported a sequential decline of 180 basis points (bps) in second-quarter occupancy at its operating portfolio.
Moreover, Terreno’s tenants have been hard hit due to the pandemic, impacting their ability to meet rental obligations. Amid this, rent relief and deferrals are added concerns for the company.
Shares of this Zacks Rank #3 (Hold) company have rallied 7.9% over the past year against the industry’s decline of 7.5%.
Stocks to Consider
Crown Castle International Corporation’s (CCI - Free Report) funds from operations (“FFO”) per share estimates for the ongoing year have been unchanged at $6.10 over the past 30 days. The company currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Alexandria Real Estate Equities, Inc.’s (ARE - Free Report) FFO per share estimates for 2020 have been revised marginally upward to $7.32 over the past week. It currently carries a Zacks Rank of 2.
Cousins Properties Incorporated’s (CUZ - Free Report) Zacks Consensus Estimate for 2020 FFO per share has been revised marginally upward to $2.74 over the past month. The company currently carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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