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Terreno Realty (TRNO) Continues Its Acquisition Spree

TRNO ARE DCT SRG

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Industrial real estate investment trust (“REIT”), Terreno Realty Corporation (TRNO - Free Report) announced the acquisition of an industrial property located in Carlstadt, NJ on Nov 16. This property, comprising around 31,000 square feet on 5.2 acres, was purchased at a price of around $5 million.

Located at 248 Paterson Plank Road, the property, which is fully leased to two tenants, includes two grade-level and 64 dock-high loading positions, parking facility for 25 cars. This buyout is consistent with the REIT’s strategy of enhancing its property portfolio in major U.S. markets. The property is located in close proximity to Exit 16W of the New Jersey Turnpike and the Meadowlands Sports Complex. The estimated stabilized cap rate of the property is 6.6%.

Notably, early this month, Terreno Realty acquired two industrial properties. The Miami, FL property was acquired for around $6.1 million while the North Bergen, NJ property was purchased for $4.8 million.

The latest acquisition is expected to boost Terreno Realty’s bottom line, going ahead. This San Francisco, CA-based REIT actively focuses on leveraging the improving fundamentals of industrial markets, bolstering its business in key coastal U.S. markets like Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington, D.C./Baltimore.

Currently, Terreno Realty has a Zacks Rank #5 (Strong Sell). Over the past 30 days, its current-quarter funds from operations (“FFO”) estimates declined 4% to 25 cents.

Some other stocks in the same space include Seritage Growth Properties (SRG - Free Report) , Alexandria Real Estate Equities, Inc. (ARE - Free Report) and DCT Industrial Trust Inc. (DCT - Free Report) . While Seritage Growth Properties sports a Zacks Rank #1 (Strong Buy), both Alexandria Real Estate Equities and DCT Industrial Trust carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Seritage Growth Properties’ current-quarter estimates have moved up 1.7% over the past one month to 59 cents.

Current-quarter estimates for Alexandria Real Estate Equities and DCT Industrial Trust remained unchanged at $1.43 and 56 cents, respectively, over the past month.

Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income. All EPS numbers presented in this write up represent FFO per share.

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