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Terreno Realty Announces Lease Renewal in WA, Sees Healthy Demand

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Terreno Realty (TRNO - Free Report) recently announced the execution of a lease renewal for 53,000 square feet with the United States Postal Service in Washington, D.C. The renewal lease will commence on June 1, 2025, and is slated for expiry in June 2030.

Apart from this renewal lease, on May 12, 2025, the company announced the execution of a 70,000-square-foot new lease in Woodinville, WA, set to begin on June 30, 2025 and expire in November 2030. The lessee of the agreement is a designer and manufacturer of camera movement systems and stabilizers for unmanned aerial cinematography and remote-controlled vehicles.

This real estate investment trust (REIT), which acquires, owns and operates industrial real estate in six major coastal U.S. markets, has been experiencing healthy demand for its properties from both existing and new tenants.

Q1 2025 Leasing Details of TRNO

TRNO’s operating portfolio was 96.6% leased to 663 tenants as of March 31, 2025. Its same-store portfolio of 15.6 million square feet was 97.4% leased on March 31, 2025. For the company’s improved land portfolio of 47 parcels spanning 150.6 acres, the leased rate was 95.1% as of March 31, 2025.

Terreno Realty was able to lock in higher rents on new and renewed leases during the quarter. The cash rents on new and renewed leases commencing during the first quarter of 2025 climbed 34.2%. Moreover, the tenant retention ratio was 71.7% for the operating portfolio.

TRNO: In a Nutshell

With a solid operating platform, a healthy balance sheet position and strategic expansion moves, TRNO seems well-positioned to capitalize on long-term growth opportunities amid favorable industry fundamentals.

In the past month, shares of this Zacks Rank #3 (Hold) company have gained 2% compared with the industry’s growth of 2.9%.

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Stocks to Consider

Some better-ranked stocks from the broader REIT sector are VICI Properties (VICI - Free Report) and W.P. Carey (WPC - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for VICI’s 2025 FFO per share is pinned at $2.34, suggesting year-over-year growth of 3.5%.

The Zacks Consensus Estimate for WPC’s 2025 FFO per share stands at $4.88, indicating an increase of 3.8% from the year-ago reported figure.

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.


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