Terreno Realty (TRNO) Buys Medley Property, Boosts Portfolio
As part of its acquisition-driven growth strategy, Terreno Realty Corporation TRNO recently shelled out $20 million to purchase an industrial property in Medley, FL. The estimated stabilized cap rate of the property is 5.6%.
Located at 8050 NW 90th Street, this 6.7-acre improved land parcel is currently vacant. It is adjacent to the intersection of the Palmetto Expressway and West Okeechobee Road, indicating an advantageous location and positioning it well to lure tenants.
Amid an e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies, demand for industrial real estate space has been shooting up. Hence, TRNO is banking on such opportunities and is focused on expanding its portfolio through acquisitions. It is targeting functional assets at in-fill locations, which enjoy high-population densities and are located near high-volume distribution points.
Recently, Terreno Realty shelled out $19.9 million to purchase an industrial property in Redmond, WA. The estimated stabilized cap rate of the property is 4.3%. Also, TRNO acquired an industrial property in Newark, NJ, for $13.0 million. The estimated stabilized cap rate of the property is 5.4%. Earlier, in San Leandro, CA, Terreno Realty acquired an industrial property for $34.6 million.
With such expansion efforts, Terreno Realty is well-poised to enhance its portfolio in six major coastal U.S. markets — Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington, DC — which display solid demographic trends and witness healthy demand for industrial real estate.
Apart from the fast adoption of e-commerce, industrial real estate space is anticipated to gain traction over the long run from a likely rise in the inventory levels of companies as a precaution for any supply-chain disruption. This will offer opportunities to industrial landlords, including TRNO, Prologis PLD and Rexford Industrial Realty REXR, to enjoy a favorable market environment.
Shares of Zacks Rank #3 (Hold) Terreno Realty have declined 5.6% over the past month compared with the industry’s fall of 5.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Prologis carries a Zacks Rank of 2 (Buy) at present. Prologis’ long-term growth rate is projected at 9.8%. The Zacks Consensus Estimate for PLD’s 2022 funds from operations (FFO) per share has been revised marginally upward in the past week.
Rexford Industrial Realty holds a Zacks Rank of 2 at present. Rexford Industrial Realty’s 2022 revenues are expected to increase 34% year over year. The Zacks Consensus Estimate for REXR’s 2022 FFO per share has been revised more than 1% upward in the past week.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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