Terreno Buys Md. Industrial Asset

Zacks

The industrial real estate investment trust (:REIT), Terreno Realty Corporation (TRNO), bought a Lanham, Maryland-based industrial asset on Dec 11 for about $5.6 million. The asset, which offers nine dock-high and one grade-level loading positions, is fully leased to six tenants.

The acquired asset, comprising one rear-load light industrial building, spans around 56,000 square feet on 4.5 acres. Situated at 4230 Forbes Boulevard in Lanham, the property is nearby U.S. Route 50 and a few miles from the Capital Beltway/I-95 and Washington, D.C. and has an estimated stabilized cap rate of 10.0%.

The acquisition is a strategic fit for Terreno Realty as it would help boost its strong tenant base. Moreover, it is expected to prove accretive to the company’s earnings, going forward.

Terreno Realty owns and operates industrial real estate properties mainly in six major coastal markets of the U.S. — the high barriers-to-entry markets of Los Angeles; Northern New Jersey/New York City; San Francisco Bay Area; Seattle; Miami; and Washington, D.C./Baltimore. The company has been active in capitalizing on opportunities to strengthen its foothold in these areas and has opted for industrial properties acquisitions as well as lease deals.

Consequently, earlier this month, Terreno Realty disclosed the lease extensions at its East Caribbean Drive buildings in Sunnyvale, California. Also, last month, Terreno Realty announced the acquisition of an industrial property in Jessup, Maryland for about $6.0 million. Furthermore, in October, the company bought two industrial properties in Carlstadt, New Jersey for about $9.9 million. These moves are poised to strengthen the growth prospects for this Zacks Rank #3 (Hold).

Some better-ranked stocks in the REIT-Equity Trust – Other industry include First Industrial Realty Trust Inc. (FR), Piedmont Office Realty Trust Inc. (PDM) and EastGroup Properties Inc. (EGP). All these stocks carry a Zacks Rank #2 (Buy).

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Read the Full Research Report on EGP


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