Terreno Realty Corporation (TRNO - Free Report) recently announced that it has executed a lease for a 5.4-acre improved land parcel in Carson, CA. The lease, which has been carried out with a national ground delivery company, started Mar 20, and is slated to expire on Mar 31, 2025.
Notably, the company has been experiencing a decent demand for its properties from both existing and new tenants. As of Dec 31, 2019, the company’s operating portfolio was 96.8% leased to 493 tenants.Cash rents on new and renewed leases, aggregating 2.4 million square feet, and beginning in 2019, increased 17.3%.
Admittedly, amid e-commerce boom and supply-chain strategy transformations, demand for industrial real estate remains robust. Terreno Realty is focusing on fortifying its portfolio in six major port cities — Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington, DC. This is because these regions are witnessing solid demographic trends and healthy demand for industrial real estates.
Furthermore, the company is aiming for growth on the back of strategic acquisitions. It intends to acquire properties at in-fill locations with high-population densities, located near high volume-distribution points. In 2019, Terreno Realty acquired 13 industrial properties, and four improved land parcels for an aggregate price of $273.6 million.
Recently, the company announced that it has acquired an industrial property in San Jose, CA for $11.8 million. The land is an improved parcel spanning 2.7 acres and is near to the US Highway 101. Continuing its acquisition in the state of California, the company recently purchased another industrial property in Rancho Dominquez, California for approximately $18 million. The property spans 66,000 square feet, situated between the Los Angeles International Airport and the port of LA.
The company is also divesting its non-core properties to fund acquisitions and enhance portfolio quality. The company shed four properties for $48.9 million in 2019. Such efforts will help the company benefit from the healthy fundamentals of the industrial real estate sector.
Currently, Terreno Realty carries a Zacks Rank #3 (Hold). Its shares have gained 9.7%, as against the industry’s decline of 30.9% over the past 12 months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Piedmont Office Realty Trust, Inc’s (PDM - Free Report) funds from operations (FFO) per share estimate for 2020 has been revised upward 3.2% to $1.96 over the past two months. The stock currently carries a Zacks Rank #2 (Buy).
Plymouth Industrial REIT’s (PLYM - Free Report) Zacks Consensus Estimate for 2020 FFO per share moved up nearly 2% to $2.08 in the past month. The stock currently holds a Zacks Rank of 2.
Highwoods Properties, Inc’s (HIW - Free Report) growth estimate for the ongoing year is 8.71%. The stock currently holds a Zacks Rank of 2.
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