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Terreno Realty (TRNO) Acquires $11.9M Bladensburg Property

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Terreno Realty Corporation (TRNO - Free Report) is on a buyout spree. It recently acquired an industrial property in Bladensburg, MD for $11.9 million. This latest acquisition comes after the company shelling out $60.8 million to purchase an industrial property at 5150-5236 Eisenhower Avenue, inside the Capital Beltway in Alexandria, VA.

The Bladensburg property, 100% leased to one tenant through May 2024, is a 4.4-acre improved land parcel at 4501 46th Street. It is less than two miles outside Washington, D.C., between U.S. Route 1 Alternate and Maryland Route 201, representing an advantageous location and positioning it well to lure tenants. The estimated stabilized cap rate of the property is 3.8%.

Amid an e-commerce boom, the efforts of companies to improve supply-chain efficiencies has increased demand for industrial real estate space. Terreno Realty is banking on such scope and is focused on expanding its portfolio on acquisitions. It targets the functional assets at in-fill locations, which enjoy high-population densities and are located near the high-volume distribution points.

Recently, Terreno Realty acquired an industrial property in Rancho Dominguez, CA for $13.8 million. Earlier, the company had shelled out $8 million to purchase an industrial property at 5380 Tuxedo Road, Hyattsville, MD.

Apart from the fast adoption of e-commerce, industrial real estate is anticipated to benefit from an increase in inventory levels post the global health crisis. The high inventory levels will offer industrial landlords, including Terreno Realty and other industrial REITs, the scope to benefit from a favorable market environment.

Terreno Realty currently carries a Zacks Rank #2 (Buy). In the past six months, TRNO’s shares have rallied 20.7% compared with the industry’s increase of 6.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Investment ResearchImage Source: Zacks Investment Research

Other Key Picks

Some other key picks from the REIT sector include Prologis (PLD - Free Report) , Extra Space Storage Inc. (EXR - Free Report) and Rexford Industrial Realty (REXR - Free Report) .

Prologis carries a Zacks Rank of 2 at present. Its 2021 FFO per share is expected to increase 8.4% year over year.

The Zacks Consensus Estimate for Prologis’ 2021 FFO per share has been revised marginally upward in a month.

Extra Space Storage holds a Zacks Rank of 2 at present. 2021 FFO per share for Extra Space Storage is expected to increase 29.9% year over year.

The Zacks Consensus Estimate for EXR’s 2021 FFO per share has been revised 3.3% upward in a month.

The Zacks Consensus Estimate for Rexford Industrial’s ongoing-year FFO per share has moved 4.5% north to $1.63 over the last two months.

The Zacks Consensus Estimate for Rexford Industrial’s 2021 FFO per share suggests an increase of 23.5% year over year. Currently, REXR carries a Zacks Rank of 2.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.