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TRNO Continues Portfolio-Rebalancing Efforts, Buys Asset in California

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Key Takeaways

  • Terreno Realty bought a Redondo Beach, CA, industrial property for about $35.5 million.
  • The 100,000-sq-ft site spans 5.1 acres, fully leased to two tenants with a 5.8% cap rate.
  • TRNO also sold a Santa Fe Springs asset and bought in Long Island City for $31.1 million.

Terreno Realty Corporation (TRNO - Free Report) recently announced the acquisition of an industrial property in Redondo Beach, CA. The buyout was carried out on Aug. 8 for a purchase value of around $35.5 million. The move will aid the company in fostering its future growth by building a robust portfolio.

The property, 100% leased to two tenants, is located at 3700 and 3730 Redondo Beach Avenue, west of I-405 and adjacent to Terreno’s 6.7-acre property at 2411 Santa Fe Avenue. Spanning around 100,000 square feet over 5.1 acres, the property comprises two industrial distribution buildings offering 16 dock-high and three grade-level loading positions with parking for 88 cars. The estimated stabilized cap rate is 5.8%.

TRNO follows a disciplined capital-recycling strategy. Early this month, the company disposed of an industrial property located in Santa Fe Springs, CA, for approximately $11 million. Last month, Terreno announced the purchase of an industrial property in Long Island City, Queens, NY, for around $31.1 million.

Final Take on TRNO

With such expansion efforts, Terreno Realty is well-positioned 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, macroeconomic uncertainty and tariff issues remain major concerns.

Shares of this Zacks Rank #2 (Buy) company have declined 8.2% in the past month compared with the industry’s fall of 2.5%.

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Other Stocks to Consider

Some other top-ranked stocks from the broader REIT sector are W.P. Carey (WPC - Free Report) and Host Hotels & Resorts (HST - Free Report) , each currently carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for WPC’s 2025 FFO per share has moved two cents southward to $4.87 over the past week.

The consensus estimate for HST’s 2025 FFO per share has moved one cent northward to $1.95 over the past week.

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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