Back to top

Image: Bigstock

Terreno Realty Sells Industrial Asset in Bellevue, Boosts Flexibility

Read MoreHide Full Article

Terreno Realty Corporation (TRNO - Free Report) announced the disposition of an industrial property in Bellevue, WA. The sale was carried out for around $17.5 million. The moves highlight the REIT’s strategy of doing away with non-core assets, boosting flexibility and building a more robust portfolio, which will aid future growth.

Terreno Realty purchased the property in November 2020 for $11.7 million. The investment yielded an unleveraged internal rate of return of 11.1% to the company. The property comprises a single industrial flex building of approximately 39,000 square feet situated on 2.1 acres of land and is currently vacant.

Terreno Realty’s strategic dispositions are an integral part of its ongoing efforts to optimize its portfolio and enhance its financial performance. In the first quarter of 2025, Terreno Realty sold two properties with two industrial distribution buildings spanning around 88,000 square feet at an aggregate sale value of around $24.9 million.

Moreover, the company remains focused on expanding its asset base in the six major coastal U.S. markets — Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington, DC, as demand for industrial real estate space remains decent. These markets are characterized by strong demand generators, such as high population densities, high volume distribution points and logistics infrastructure, and constrained supply. 

As of March 31, 2025, TRNO had acquisitions worth around $55.9 million under contract and nearly $16 million under letters of intent. The completion of these is subject to due diligence and closing conditions. Terreno had five properties under development or redevelopment as of the same date. Post completion, these will comprise eight buildings spanning around 0.8 million square feet, which are 48% leased. The company also has around 22.4 acres of land dedicated to future developments at an estimated investment value of around $392.8 million.

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, though macroeconomic uncertainty and policy changes remain concerns. 

In the past month, shares of this Zacks Rank #3 (Hold) company have declined 6.7% against the industry’s growth of 0.8%.

Zacks Investment Research
Image Source: Zacks Investment Research

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 pegged 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Terreno Realty Corporation (TRNO) - free report >>

W.P. Carey Inc. (WPC) - free report >>

VICI Properties Inc. (VICI) - free report >>

Published in