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Terreno Realty Concludes Property Redevelopment in Santa Ana, CA

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Terreno Realty Corporation (TRNO - Free Report) announced that it recently completed the redevelopment of an asset in Santa Ana, CA, for around $41.3 million at a stabilized cap rate of approximately 5.1%. The move highlights its effort to enhance its property quality to meet tenants' growing demand.

The redeveloped property with a rear-load industrial building spans around 92,000 square feet on 4.9 acres of land. The property is equipped with ten dock-high and two grade-level loading facilities, along with a parking area for 145 cars. Fully leased to a temperature-controlled life-sciences supply chain solution provider, the facility is LEED Silver certified.

Located near the Costa Mesa Freeway (CA 55) and less than two miles from the intersection of CA 55 and I-405 and the John Wayne Airport in Orange County, the redeveloped property offers the much-needed advantages of ease of connectivity.

Tereno in a Snapshot

Terreno Realty’s redevelopments are an integral part of its ongoing efforts to optimize its portfolio and enhance its financial performance. Last December, the company announced the redevelopment of its 2.8-acre improved land parcel in Rancho Dominguez, CA, leased to a trucking and transloading provider.

Moreover, the company remains focused on expanding its asset base in the six major coastal U.S. markets — Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington, DC — as demand for industrial real estate space remains buoyant.

With a solid operating platform, a healthy balance sheet position and prudent capital management practices, TRNO seems well-positioned to capitalize on long-term growth opportunities.

In early February, TRNO came out with its fourth-quarter 2024 earnings results. The company’s funds from operations (FFO) of 62 cents per share matched the Zacks Consensus Estimate. This compared favorably with the year-ago FFO of 58 cents per share. The company posted revenues of $103.7 million, surpassing the consensus estimate by 2.1% and an increment of 20% year over year.

Shares of the company have risen 10.1% over the past three months against the industry’s fall of 3.7%. TRNO carries a Zacks Rank #3 (Hold) at present.

Zacks Investment Research
Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks from the broader REIT sector are SL Green Realty (SLG - Free Report) and Welltower (WELL - Free Report) , each carrying Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for SL Green Realty’s 2025 FFO per share has moved marginally upward over the past month to $5.52.

The consensus estimate for Welltower’s 2025 FFO per share has increased 1% over the past week to $4.84.

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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