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Terreno Realty (TRNO) Sees Demand, Leases California Asset
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Terreno Realty (TRNO - Free Report) is witnessing healthy demand for its properties and has announced the execution of a lease renewal for 110,000 square feet in Commerce, CA, with a third-party logistics provider. As a result, the lease will expire in April 2028 instead of March 2023.
Last month, Terreno Realty announced an early lease renewal of 63,000 square feet in Jamaica Queens, NY, with a global freight forwarding provider. Consequently, the lease will expire in December 2027 instead of December 2022. These lease renewals reflect the solid demand for the company’s properties.
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. TRNO is banking on such opportunities and is focused on expanding its portfolio through acquisitions.
Apart from the fast adoption of e-commerce, industrial real estate space is poised 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 Terreno Realty, Prologis (PLD - Free Report) and Rexford Industrial Realty (REXR - Free Report) , to enjoy a favorable market environment.
TRNO recently shelled out $15.4 million to purchase an industrial property in Elizabeth, NJ. Located at 629 Henry Street, this property comprises one industrial distribution building containing roughly 23,000 square feet on 1.8 acres. It is 100% leased on a short-term basis. The property’s advantageous location — adjacent to the Newark Liberty International Airport and Exit 13A of the New Jersey Turnpike — is likely to lure tenants.
In the third quarter, Terreno Realty noted that for its operating portfolio, the occupancy reached 98.4% as of Sep 30, 2022, marking an expansion of 50 basis points (bps) from the prior quarter-end and 40 bps from the year-ago quarter-end. Moreover, its same-store portfolio was 98.9% leased on Sep 30, 2022.
Terreno Realty was able to lock in higher rents on new and renewed leases, reflecting resilience in its portfolio. Cash rents on new and renewed leases (commenced in the third quarter) aggregating 0.7 million square feet and 5.1 acres of improved land grew 65.9%. The tenant retention ratio for the operating portfolio was 76.2% and 53.3% for the improved land portfolio.
Prologis carries a Zacks Rank of 3 at present. Prologis’ long-term growth rate is projected at 8.6%. The Zacks Consensus Estimate for PLD’s 2022 funds from operations (FFO) per share has been revised marginally upward in the past two months.
Rexford Industrial Realty carries a Zacks Rank of 3 at present. Rexford Industrial Realty’s 2022 revenues are expected to increase 38.4% year over year. The Zacks Consensus Estimate for REXR’s 2022 FFO per share has been revised marginally 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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Terreno Realty (TRNO) Sees Demand, Leases California Asset
Terreno Realty (TRNO - Free Report) is witnessing healthy demand for its properties and has announced the execution of a lease renewal for 110,000 square feet in Commerce, CA, with a third-party logistics provider. As a result, the lease will expire in April 2028 instead of March 2023.
Last month, Terreno Realty announced an early lease renewal of 63,000 square feet in Jamaica Queens, NY, with a global freight forwarding provider. Consequently, the lease will expire in December 2027 instead of December 2022. These lease renewals reflect the solid demand for the company’s properties.
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. TRNO is banking on such opportunities and is focused on expanding its portfolio through acquisitions.
Apart from the fast adoption of e-commerce, industrial real estate space is poised 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 Terreno Realty, Prologis (PLD - Free Report) and Rexford Industrial Realty (REXR - Free Report) , to enjoy a favorable market environment.
TRNO recently shelled out $15.4 million to purchase an industrial property in Elizabeth, NJ. Located at 629 Henry Street, this property comprises one industrial distribution building containing roughly 23,000 square feet on 1.8 acres. It is 100% leased on a short-term basis. The property’s advantageous location — adjacent to the Newark Liberty International Airport and Exit 13A of the New Jersey Turnpike — is likely to lure tenants.
In the third quarter, Terreno Realty noted that for its operating portfolio, the occupancy reached 98.4% as of Sep 30, 2022, marking an expansion of 50 basis points (bps) from the prior quarter-end and 40 bps from the year-ago quarter-end. Moreover, its same-store portfolio was 98.9% leased on Sep 30, 2022.
Terreno Realty was able to lock in higher rents on new and renewed leases, reflecting resilience in its portfolio. Cash rents on new and renewed leases (commenced in the third quarter) aggregating 0.7 million square feet and 5.1 acres of improved land grew 65.9%. The tenant retention ratio for the operating portfolio was 76.2% and 53.3% for the improved land portfolio.
Shares of Zacks Rank #3 (Hold) Terreno Realty have climbed 4.5% quarter to date compared with the industry’s increase of 2.4%. 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 3 at present. Prologis’ long-term growth rate is projected at 8.6%. The Zacks Consensus Estimate for PLD’s 2022 funds from operations (FFO) per share has been revised marginally upward in the past two months.
Rexford Industrial Realty carries a Zacks Rank of 3 at present. Rexford Industrial Realty’s 2022 revenues are expected to increase 38.4% year over year. The Zacks Consensus Estimate for REXR’s 2022 FFO per share has been revised marginally 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.