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Terreno Realty (TRNO) Expands Portfolio With Newark Property
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Terreno Realty Corporation (TRNO - Free Report) shelled out $186.0 million to purchase an industrial property in Newark, CA. The move comes as part of the company’s acquisition-driven growth strategy.
Located at 7355-7395 Morton Avenue, the property comprises four industrial distribution buildings containing roughly 603,000 square feet on 30.5 acres. The property’s advantageous location — adjacent to I-880, CA SR 84 and the Dumbarton Bridge — is likely to attract tenants. Currently, it is 100% leased to four tenants with leases expiring between 2026 and 2032. The estimated stabilized cap rate is 4.6%.
Amid an e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies, the 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.
Further, the company is targeting functional assets at in-fill locations. Such assets enjoy high-population densities and are located near high-volume distribution points.
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. These markets display solid demographic trends and witness healthy demand for industrial real estate.
Earlier in March, TRNO announced the purchase of an industrial property in Long Island City, Queens, NY, for $23.0 million. Moreover, in February, Terreno Realty acquired an industrial property in Hialeah, FL, for $173.6 million. For 2022, Terreno Realty’s acquisition activity included 20 properties. These comprised 17 buildings encompassing roughly 831,000 square feet and 11 improved land parcels of 35.7 acres for $414.8 million.
Apart from the fast adoption of e-commerce, the 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 TRNO, Rexford Industrial Realty, Inc. (REXR - Free Report) and First Industrial Realty Trust, Inc. (FR - Free Report) , to enjoy a favorable market environment.
Rexford Industrial Realty carries a Zacks Rank of 3 (Hold) at present. Rexford Industrial Realty’s long-term growth rate is projected at 7.80%. The Zacks Consensus Estimate for REXR’s 2023 funds from operations (FFO) per share of $2.16 suggests a 10.2% year-over-year increase.
First Industrial Realty currently carries a Zacks Rank of 3. The Zacks Consensus Estimate for FR’s 2023 funds from operations (FFO) per share of $2.40 indicates a 5.3% year-over-year increase.
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) Expands Portfolio With Newark Property
Terreno Realty Corporation (TRNO - Free Report) shelled out $186.0 million to purchase an industrial property in Newark, CA. The move comes as part of the company’s acquisition-driven growth strategy.
Located at 7355-7395 Morton Avenue, the property comprises four industrial distribution buildings containing roughly 603,000 square feet on 30.5 acres. The property’s advantageous location — adjacent to I-880, CA SR 84 and the Dumbarton Bridge — is likely to attract tenants. Currently, it is 100% leased to four tenants with leases expiring between 2026 and 2032. The estimated stabilized cap rate is 4.6%.
Amid an e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies, the 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.
Further, the company is targeting functional assets at in-fill locations. Such assets enjoy high-population densities and are located near high-volume distribution points.
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. These markets display solid demographic trends and witness healthy demand for industrial real estate.
Earlier in March, TRNO announced the purchase of an industrial property in Long Island City, Queens, NY, for $23.0 million. Moreover, in February, Terreno Realty acquired an industrial property in Hialeah, FL, for $173.6 million. For 2022, Terreno Realty’s acquisition activity included 20 properties. These comprised 17 buildings encompassing roughly 831,000 square feet and 11 improved land parcels of 35.7 acres for $414.8 million.
Apart from the fast adoption of e-commerce, the 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 TRNO, Rexford Industrial Realty, Inc. (REXR - Free Report) and First Industrial Realty Trust, Inc. (FR - Free Report) , to enjoy a favorable market environment.
Shares of Terreno Realty, currently carrying a Zacks Rank #2 (Buy), have climbed 10.2% in the past three months compared to the industry’s decline of 1.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Rexford Industrial Realty carries a Zacks Rank of 3 (Hold) at present. Rexford Industrial Realty’s long-term growth rate is projected at 7.80%. The Zacks Consensus Estimate for REXR’s 2023 funds from operations (FFO) per share of $2.16 suggests a 10.2% year-over-year increase.
First Industrial Realty currently carries a Zacks Rank of 3. The Zacks Consensus Estimate for FR’s 2023 funds from operations (FFO) per share of $2.40 indicates a 5.3% year-over-year increase.
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.