We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Terreno Realty (TRNO) Sees Solid Demand, Leases Medley Asset
Read MoreHide Full Article
Terreno Realty (TRNO - Free Report) is witnessing healthy demand for its properties. Recently, the company executed a lease for 6.7 acres of improved land in Medley, FL, with a North American provider of equipment rentals. This lease will start on Feb 1, 2023 and expire in March 2033.
Reflecting the positive sentiments of investors, shares of TRNO were up 1.04% during Friday’s regular trading session.
Apart from the lease in Medley, Terreno Realty recently executed a lease renewal for 110,000 square feet in Commerce, CA, with a third-party logistics provider. As a result, the lease will expire in April 2028 instead of March 2023.
Moreover, last month, Terreno Realty announced an early lease renewal of 63,000 square feet in Jamaica Queens, NY, with a global freight forwarding provider. Consequently, the lease will expire in December 2027 instead of December 2022. These lease renewals reflect the solid demand for the company’s properties.
The demand for industrial real estate space has been high amid an e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies. TRNO is also experiencing solid demand for its properties.
For Terreno Realty’s operating portfolio, the occupancy reached 98.4% as of Sep 30, 2022, marking an expansion of 50 basis points (bps) from the prior quarter-end and 40 bps from the year-ago quarter-end. Moreover, its same-store portfolio was 98.9% leased on Sep 30, 2022.
Terreno Realty was able to lock in higher rents on new and renewed leases, reflecting resilience in its portfolio. Cash rents on new and renewed leases (commenced in the third quarter) aggregating 0.7 million square feet and 5.1 acres of improved land grew 65.9%. The tenant retention ratio for the operating portfolio was 76.2% and 53.3% for the improved land portfolio.
Apart from the fast adoption of e-commerce, industrial real estate space is poised to gain traction over the long run from a likely rise in the inventory levels of companies as a precaution for any supply-chain disruption. This will offer opportunities to industrial landlords, including Terreno Realty, Prologis (PLD - Free Report) and Rexford Industrial Realty (REXR - Free Report) , to enjoy a favorable market environment.
Terreno Realty is banking on such opportunities and is focused on expanding its portfolio through acquisitions. TRNO recently shelled out $15.4 million to purchase an industrial property in Elizabeth, NJ.
Prologis carries a Zacks Rank of 3 at present. Prologis’ long-term growth rate is projected at 8.6%. The Zacks Consensus Estimate for PLD’s 2022 funds from operations (FFO) per share has been revised marginally upward in the past two months.
Rexford Industrial Realty carries a Zacks Rank of 3 at present. Rexford Industrial Realty’s 2022 revenues are expected to increase 38.4% year over year. The Zacks Consensus Estimate for REXR’s 2022 FFO per share has been revised marginally upward in the past month.
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.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Terreno Realty (TRNO) Sees Solid Demand, Leases Medley Asset
Terreno Realty (TRNO - Free Report) is witnessing healthy demand for its properties. Recently, the company executed a lease for 6.7 acres of improved land in Medley, FL, with a North American provider of equipment rentals. This lease will start on Feb 1, 2023 and expire in March 2033.
Reflecting the positive sentiments of investors, shares of TRNO were up 1.04% during Friday’s regular trading session.
Apart from the lease in Medley, Terreno Realty recently executed a lease renewal for 110,000 square feet in Commerce, CA, with a third-party logistics provider. As a result, the lease will expire in April 2028 instead of March 2023.
Moreover, last month, Terreno Realty announced an early lease renewal of 63,000 square feet in Jamaica Queens, NY, with a global freight forwarding provider. Consequently, the lease will expire in December 2027 instead of December 2022. These lease renewals reflect the solid demand for the company’s properties.
The demand for industrial real estate space has been high amid an e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies. TRNO is also experiencing solid demand for its properties.
For Terreno Realty’s operating portfolio, the occupancy reached 98.4% as of Sep 30, 2022, marking an expansion of 50 basis points (bps) from the prior quarter-end and 40 bps from the year-ago quarter-end. Moreover, its same-store portfolio was 98.9% leased on Sep 30, 2022.
Terreno Realty was able to lock in higher rents on new and renewed leases, reflecting resilience in its portfolio. Cash rents on new and renewed leases (commenced in the third quarter) aggregating 0.7 million square feet and 5.1 acres of improved land grew 65.9%. The tenant retention ratio for the operating portfolio was 76.2% and 53.3% for the improved land portfolio.
Apart from the fast adoption of e-commerce, industrial real estate space is poised to gain traction over the long run from a likely rise in the inventory levels of companies as a precaution for any supply-chain disruption. This will offer opportunities to industrial landlords, including Terreno Realty, Prologis (PLD - Free Report) and Rexford Industrial Realty (REXR - Free Report) , to enjoy a favorable market environment.
Terreno Realty is banking on such opportunities and is focused on expanding its portfolio through acquisitions. TRNO recently shelled out $15.4 million to purchase an industrial property in Elizabeth, NJ.
Shares of Zacks Rank #3 (Hold) Terreno Realty have climbed 8.4% quarter to date compared with the industry’s increase of 2.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Prologis carries a Zacks Rank of 3 at present. Prologis’ long-term growth rate is projected at 8.6%. The Zacks Consensus Estimate for PLD’s 2022 funds from operations (FFO) per share has been revised marginally upward in the past two months.
Rexford Industrial Realty carries a Zacks Rank of 3 at present. Rexford Industrial Realty’s 2022 revenues are expected to increase 38.4% year over year. The Zacks Consensus Estimate for REXR’s 2022 FFO per share has been revised marginally upward in the past month.
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.