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Another Industrial Asset Buyout for TRNO

Zacks Equity Research

Riding high on its growth trajectory, San Francisco-based Terreno Realty Corporation (TRNO) disclosed the buyout of an industrial property in Landover, Md. This industrial real estate investment trust (:REIT) shelled out about $7.0 million for acquiring this 100% leased asset.

Spanning 71,000 square feet across 4.0 acres, the property has one rear-load industrial distribution building and is occupied by one tenant. The property is located at 3601 Pennsy Drive in Landover alongside the intersection of US Route 50 and I-95/495, the Capital Beltway and in proximity to Washington, D.C. The acquired property’s estimated stabilized cap rate is 5.8%.

The acquisition is a strategic fit for Terreno Realty as it would help boost its portfolio base and tenant mix. 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 6 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.

Notably, Terreno Realty has been focusing on capital-recycling program, which involves the divestiture of non-core assets and usage of the proceeds in higher-growth assets. Accordingly, in recent times, the company bought Gardena, Calif.-based and Lanham, Md.-based industrial assets for roughly $6.0 million and $5.6 million, respectively. Also, of late, Terreno Realty sold an industrial asset for about $19.0 million in Totowa, N.J. These moves are poised to strengthen the growth prospects of this Zacks Rank #3 (Hold) stock.

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 SL Green Realty Corp. (SLG). All these stocks carry a Zacks Rank #2 (Buy).

Read the Full Research Report on FR
Read the Full Research Report on SLG
Read the Full Research Report on TRNO
Read the Full Research Report on PDM

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