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Terreno Realty Bolsters Portfolio With Property Buyout in Los Angeles

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Key Takeaways

  • TRNO acquired a $10M Los Angeles flex property with a 6.4% cap rate and full tenant occupancy.
  • The deal supports TRNO's strategy of shedding non-core assets for value-accretive investments.
  • TRNO has $49M in deals under contract and $75.8M under letters of intent as of May 6, 2025.

Terreno Realty (TRNO - Free Report) recently announced the acquisition of an industrial property in Los Angeles, CA, in June 2025 for around $10 million. The transaction marks an estimated stabilized cap rate of 6.4%.

Located at 11100 Hindry Avenue, west of I-405, the property comprises one industrial flex building containing roughly 34,000 square feet on 1.5 acres. The property is fully leased to four tenants, all set to expire in September 2028. With an advantageous location adjacent to Los Angeles International Airport, the property is likely to lure tenants. Therefore, this acquisition seems a strategic fit.

TRNO has been actively restructuring its portfolio by disposing of non-core assets and making value-accretive investments. Such efforts will aid long-term revenue growth. In May 2025, Terreno Realty sold two properties at an aggregate sale value of around $114.5 million. As of May 6, 2025, TRNO had acquisitions worth around $49 million under contract and nearly $75.8 million under letters of intent.

Moreover, as of March 31, 2025, Terreno had five properties under development or redevelopment. Post completion, these will comprise eight buildings spanning around 0.8 million square feet, which are 48% pre-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.

With such expansion efforts, Terreno Realty is well-poised to enhance its portfolio in six major coastal U.S. markets, namely New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle and Washington, D.C. These markets display solid demographic trends and witness healthy demand for industrial real estate. However, reflecting concerns over macroeconomic uncertainty and tariff policies, shares of this Zacks Rank #3 (Hold) company have risen 1.1% only so far in the year, underperforming its industry’s upside of 3.6%.

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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 Properties’ 2025 FFO per share has been raised marginally over the past two months to $2.34.

The consensus estimate for W.P. Carey’s current-year FFO per share has been revised northward 1.2% in the past two months to $4.88.

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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