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Terreno Realty (TRNO) Adds Two Properties for $27.2M, Stock Up

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Terreno Realty Corporation (TRNO - Free Report) recently announced shelling of $27.2 million for the acquisition of two industrial properties in Los Angeles and Inglewood, CA. The properties are located west of I-405, adjacent to the Los Angeles International Airport.

Shares of this industrial real estate investment trusts (REIT) appreciated 2.43% on May 27 trading session following the announcement, reflecting positive sentiments.

The distribution building in Inglewood encompasses roughly 19,000 square feet on 0.9 acres and is located at 332 Hindry Avenue. It is currently 70% leased to one tenant and has an estimated stabilized cap rate of 2.4%.

The second industrial distribution building positioned at 8320-8400 Isis Avenue in Los Angeles spans approximately 40,000 square feet on 2.1 acres. At present, it is 100% leased to four tenants with an estimated stabilized cap rate of 3.2%.

The demand for industrial real estate space is soaring given the growth in industries, an e-commerce boom, and companies striving to improve supply-chain efficiencies. Additionally, a rise in inventory levels of companies as a precautionary measure for any supply-chain disruption is expected to lend to the long-term growth momentum for this sector, thereby serving a favorable market to industrial landlords.

The company is carrying out expansionary measures through acquisitions to enhance its portfolio in six major coastal U.S. markets — Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington, DC. These markets exhibit solid demographic trends and witness healthy demand for industrial real estate. It targets functional assets at in-fill locations, which enjoy high-population densities and are located near high-volume distribution points. The company is well-poised to capitalize on such opportunities.

Terreno Realty recently added a few industrial properties to its portfolio in the second quarter of 2022. During the month of May, it bought an industrial property in Anaheim, CA, for $15.0 million that is currently vacant and has an estimated stabilized cap rate is 4.7%. In the same month, the company closed the acquisition of an industrial property at 127-167 and 147-163 Doremus Avenue in Newark, NJ, for $11.9 million. The property is 100% leased on a short-term basis to one tenant and has an estimated stabilized cap rate of 6.9%.

Terreno Realty currently carries a Zacks Rank #2 (Buy). In the past three months, TRNO shares have declined 9% against the industry’s growth of 0.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Other Stocks to Consider

Some other top-ranked stocks from the REIT sector are Prologis (PLD - Free Report) , Rexford Industrial Realty (REXR - Free Report) and Cedar Realty Trust .

The Zacks Consensus Estimate for Prologis’ 2022 funds from operations (FFO) per share has moved 2.6% upward in the past two months to $5.15. PLD presently carries a Zacks Rank of 2.

The Zacks Consensus Estimate for Rexford Industrial Realty’s ongoing year’s FFO per share has been raised 1.6% over the past two months to $1.93. REXR carries a Zacks Rank #2, currently.

The Zacks Consensus Estimate for Cedar Realty Trust’s current-year FFO per share has moved 3.6% northward in the past month to $2.59. CDR carries a Zacks Rank of 2 at present.

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.


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