U.S. Markets closed

Terreno Realty (TRNO) Buys Alexandria Asset, Expands Portfolio

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

As part of its acquisition-driven growth strategy, Terreno Realty Corporation TRNO recently shelled out $60.8 million to purchase an industrial property in Alexandria, VA. The estimated stabilized cap rate of the property is 3.0%.

Located at 5150-5236 Eisenhower Avenue, inside the Capital Beltway, this property comprises three industrial distribution buildings encompassing roughly 199,000 square feet on 9.3 acres. With 25 dock-high and 15 grade-level loading positions, and parking for 216 cars along with an advantageous location, this industrial property is poised to lure tenants. Presently, the property is fully leased to 13 tenants, which are slated for expiry by 2026.

Demand for industrial real estate space has been shooting up amid an e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies. Terreno Realty is banking on such scope and is focused on expanding its portfolio on acquisitions. It is targeting the functional assets at in-fill locations, which enjoy high-population densities and are located near the high-volume distribution points.

Recently, Terreno Realty acquired an industrial property in Rancho Dominguez, CA, for $13.8 million. Earlier, the company shelled out $8 million to purchase an industrial property at 5380 Tuxedo Road, Hyattsville, MD.

Apart from the fast adoption of e-commerce, industrial real estate is anticipated to benefit from an increase in inventory levels post the global health crisis, offering scope to industrial landlords, including Terreno Realty, Prologis PLD, Duke Realty DRE and Rexford Industrial Realty REXR, to enjoy a favorable market environment.

Terreno Realty currently carries a Zacks Rank #2 (Buy). In the past three months, the company’s shares have gained 23.5% compared with the industry’s increase of 3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

Prologis carries a Zacks Rank of 2 at present. Its 2021 FFO per share is expected to increase 8.4% year over year.

The Zacks Consensus Estimate for Prologis’ 2021 FFO per share has been revised marginally upward in a month.

Duke Realty carries a Zacks Rank of 3 (Hold) at present. The long-term growth rate for Duke Realty is projected at 7.80%.

The Zacks Consensus Estimate for DRE’s 2021 FFO per share has been revised marginally upward in a month to $1.74.

The Zacks Consensus Estimate for Rexford Industrial’s ongoing-year FFO per share has moved 5.2% north to $1.63 over the past two months.

The Zacks Consensus Estimate for Rexford Industrial’s 2021 FFO per share suggests an increase of 23.5% year over year. Currently, REXR carries a Zacks Rank of 2.

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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Prologis, Inc. (PLD) : Free Stock Analysis Report

Duke Realty Corporation (DRE) : Free Stock Analysis Report

Terreno Realty Corporation (TRNO) : Free Stock Analysis Report

Rexford Industrial Realty, Inc. (REXR) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research