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Terreno Realty Expands Portfolio

Zacks Equity Research

San Francisco-based real estate investment trust (:REIT) – Terreno Realty Corporation (TRNO) – has expanded its portfolio by purchasing an industrial property in Medley, Fla. recently for approximately $5.1 million.  

Terreno’s acquired property comprises 1 industrial building that spans 49,000 square feet on 5.4 acres. It also represents the company’s 10th building in Miami-Dade County and is fully leased to a single tenant. It offers dock-high truck loading on two sides as well as land that can be utilized for trailer storage or extension of building. The property’s estimated stabilized cap rate is 6.3%.

Terreno’s acquisition is in sync with its long-term strategy. As a matter of fact, over the years, Terreno has focused on acquiring high-quality assets rather than pursuing ground-up development or land investments. This expansion strategy helps the company to own functional and flexible buildings in infill locations that can be modified to accommodate single and multiple tenants at discounts to replacement cost.

We expect this strategic acquisition to help augment Terreno’s top line and lead to a rise in shareholders’ value going forward.

Terreno Realty owns and operates industrial real estate properties primarily in 6 major coastal markets of the U.S. These include 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.

Terreno Realty currently holds a Zacks Rank #3 (Hold). However, a number of other REITs that are performing better and worth a look are Omega Healthcare Investors Inc. (OHI), Ryman Hospitality Properties Inc. (RHP), Sabra Health Care REIT Inc. (SBRA), all carrying a Zacks Rank #1 (Strong Buy).

Read the Full Research Report on TRNO

Read the Full Research Report on RHP

Read the Full Research Report on OHI

Read the Full Research Report on SBRA

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