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Terreno Realty (TRNO) Sells NJ Industrial Property for $24.3M
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Terreno Realty Corporation (TRNO - Free Report) has announced the disposition of an industrial property consisting of one industrial distribution building encompassing roughly 98,000 square feet on 3.6 acres in Bayonne, NJ. The sale was carried out for around $24.3 million on Dec 27, 2022.
The move comes as part of the company’s financing strategy, through which it aims to maintain financial flexibility to facilitate long-term growth.
The property, purchased by Terreno Realty on Mar 31, 2014, for around $9.2 million, yielded an unleveraged internal rate of return of 14.1%. It is presently 100% leased to a single tenant.
In October 2022, TRNO sold one industrial property in Kent, WA, for $8.7 million (net book value of roughly $2.9 million). Notably, from the beginning of 2022 through Nov 1, 2022, the company carried out dispositions aggregating $119 million.
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. TRNO is also experiencing solid demand for its properties.
In December 2022, 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.
In the same month, it 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.
Further, Terreno Realty is expanding 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 situated near high-volume distribution points. Markedly, from the beginning of 2022 through Nov 1, 2022, TRNO completed acquisitions worth $377.1 million.
With a solid balance-sheet position and capital-recycling efforts, TRNO remains well-positioned to capitalize on long-term growth opportunities.
Some better-ranked stocks from the REIT sector are VICI Properties (VICI - Free Report) , Equity Commonwealth (EQC - Free Report) and Service Properties Trust (SVC - Free Report) .
The Zacks Consensus Estimate for VICI Properties’ current-year FFO per share is pegged at $1.92. VICI carries a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Equity Commonwealth’s 2022 FFO per share stands at 33 cents. EQC sports a Zacks Rank #1 currently.
The Zacks Consensus Estimate for Service Properties Trust’s ongoing year’s FFO per share is pegged at $1.44. SVC 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.
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Terreno Realty (TRNO) Sells NJ Industrial Property for $24.3M
Terreno Realty Corporation (TRNO - Free Report) has announced the disposition of an industrial property consisting of one industrial distribution building encompassing roughly 98,000 square feet on 3.6 acres in Bayonne, NJ. The sale was carried out for around $24.3 million on Dec 27, 2022.
The move comes as part of the company’s financing strategy, through which it aims to maintain financial flexibility to facilitate long-term growth.
The property, purchased by Terreno Realty on Mar 31, 2014, for around $9.2 million, yielded an unleveraged internal rate of return of 14.1%. It is presently 100% leased to a single tenant.
In October 2022, TRNO sold one industrial property in Kent, WA, for $8.7 million (net book value of roughly $2.9 million). Notably, from the beginning of 2022 through Nov 1, 2022, the company carried out dispositions aggregating $119 million.
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. TRNO is also experiencing solid demand for its properties.
In December 2022, 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.
In the same month, it 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.
Further, Terreno Realty is expanding 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 situated near high-volume distribution points. Markedly, from the beginning of 2022 through Nov 1, 2022, TRNO completed acquisitions worth $377.1 million.
With a solid balance-sheet position and capital-recycling efforts, TRNO remains well-positioned to capitalize on long-term growth opportunities.
In the past three months, shares of this Zacks Rank #3 (Hold) company have gained 4.6% compared with the industry’s growth of 0.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are VICI Properties (VICI - Free Report) , Equity Commonwealth (EQC - Free Report) and Service Properties Trust (SVC - Free Report) .
The Zacks Consensus Estimate for VICI Properties’ current-year FFO per share is pegged at $1.92. VICI carries a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Equity Commonwealth’s 2022 FFO per share stands at 33 cents. EQC sports a Zacks Rank #1 currently.
The Zacks Consensus Estimate for Service Properties Trust’s ongoing year’s FFO per share is pegged at $1.44. SVC 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.