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Terreno Realty Announces Sale of Industrial Property in Maryland

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Key Takeaways

  • Terreno Realty sold a 56,000-sq-ft fully leased industrial property in Lanham, MD for $11.1M on March 6, 2026.
  • Terreno Realty bought the asset in Dec 2013 for $5.6M, generating a 10.8% unleveraged internal rate of return.
  • TRNO sold $386.4M of properties in 2025 and had $19.9M of dispositions under contract as of Dec. 31, 2025.

Terreno Realty Corporation (TRNO - Free Report) announced the disposition of an industrial property located in Lanham, MD. The sale was carried out on March 6, 2026, for approximately $11.1 million.

The property spans across 56,000 square feet, comprising a light industrial building on 4.5 acres, 100% leased. Terreno Realty had purchased the property on Dec. 11, 2013, for $5.6 million. The investment yielded an unleveraged internal rate of return of 10.8% to the company.

Terreno Realty’s dispositions are an integral part of its ongoing efforts to optimize its portfolio and enhance its financial performance. In the fourth quarter of 2025, the company sold properties worth $144.2 million.

Total dispositions for the year 2025 aggregated $386.4 million. As of Dec. 31, 2025, the company has dispositions under contract to the tune of $19.9 million, subject to completion of due diligence and closing conditions.

Wrapping Up on TRNO

By selling a potentially non-core or mature asset,  Terreno can redeploy the proceeds into acquisitions or development projects in stronger industrial markets that offer higher growth prospects. The transaction may also enhance the company’s liquidity and financial flexibility, enabling it to fund future investments or manage its balance sheet more efficiently. While the sale could lead to a slight near-term decline in rental income if the asset was contributing to revenues, reinvestment of the proceeds into higher-yielding opportunities is expected to support long-term earnings growth.

Over the past six months, shares of this Zacks Rank #2 (Buy) company have risen 6.8% compared with the industry's growth of 4.1%. Analysts seem bullish on this industrial REIT, with its 2026 FFO per share estimate moving northward 1.1% over the past month to $2.79.

Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider

Some other top-ranked stocks from the broader REIT sector are Chatham Lodging Trust REIT (CLDT - Free Report) , sporting Rank #1 (Strong Buy) and Cousins Properties (CUZ - Free Report) , carrying Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CLDT’s 2026 FFO per share is pegged at $1.20, which indicates year-over-year growth of 17.7%.

The Zacks Consensus Estimate for CUZ’s full-year FFO per share is pinned at $2.93, which calls for an increase of 3.2% from the year-ago period.

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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