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Terreno Realty Announces Lease at Avenel, Sees Healthy Demand

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Terreno Realty (TRNO - Free Report) recently announced the execution of a lease for 82,000 square feet in Avenel, New Jersey. This lease with a leading national wholesale tire distributor will commence on Dec. 31, 2024, and is slated for expiry in January 2030.

This real estate investment trust (REIT), which acquires, owns and operates industrial real estate in six major coastal U.S. markets, has been experiencing healthy demand for its properties from both existing and new tenants. On Nov. 7, 2024, the company announced the execution of an early lease renewal in Jamaica Queens, NY, with a manufacturer of pre-cooked meals. The 50,000-square-foot lease, originally set to expire in September 2026, has been extended until September 2036.

Apart from these, on Oct. 1, 2024, Terreno also announced that it has executed a 75,000-square-foot lease in Elizabeth, NJ. This lease with a third-party logistics provider is commenced on Sept. 30, 2024, and is set to expire in January 2028.

Q3 Leasing Details of Terreno Realty

TRNO’s operating portfolio was 97% leased to 675 tenants as of Sept. 30, 2024. Its same-store portfolio of 14.6 million square feet was 97.3% leased on Sept. 30, 2024. For the company’s improved land portfolio of 45 parcels spanning 152.4 acres, the leased rate was 98.1% as of Sept. 30, 2024.

Terreno Realty was able to lock in higher rents on new and renewed leases during the quarter. The cash rents on new and renewed leases commencing during the third quarter of 2024, climbed 24.1%. Moreover, the tenant retention ratio was 67.3% for the operating portfolio and 100% for the improved land portfolio.

TRNO: In a Nutshell

With a solid operating platform, a healthy balance sheet position and strategic expansion moves, TRNO seems well-positioned to capitalize on long-term growth opportunities amid favorable industry fundamentals.

Shares of this Zacks Rank #3 (Hold) company have gained 10% in the past six months compared with the industry’s 19.5% growth.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Alpine Income Property Trust (PINE - Free Report) and Cousins Properties (CUZ - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Alpine Income’s 2024 FFO per share is pinned at $1.70, suggesting year-over-year growth of 15.7%.

The Zacks Consensus Estimate for Cousins Properties 2024 FFO per share stands at $2.68, indicating an increase of 2.3% from the year-ago reported figure.

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.


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