Terreno Realty On Acquisition Spree, Buys Fairfield Property

Industrial REIT Terreno Realty Corporation (NYSE:TRNO) is on an acquisition spree. Most recently, the company shelled out $7.2 million for the purchase of an industrial property in Fairfield, NJ. This comes after the recent acquisition of an industrial property — Hawthorne Business Park — in Hawthorne, CA, for $27.6 million.

The moves come as part of the company’s continued efforts to capitalize on healthy fundamentals in the industrial markets through purchase of strategic properties in core markets.

Consisting of one industrial distribution building, spanning around 51,000 square feet on 5.6 acres, the latest acquired property is advantageously located at 40 New Dutch Lane. It is situated near Interstate 80 and U.S. Route 46. The property is in high demand — reflected by its 100% leasing to a tenant. Also, it is anticipated to drive Terreno’s bottom line in the near future.

As a matter of fact, elevated demand, recovering economy and job market, strengthening e-commerce market and a healthy manufacturing environment are driving the fundamentals of the industrial real estate market.

Amid this, Terreno remains well poised to capitalize on robust industry fundamentals as it has solid capacity to offer modern distribution properties. The company aims to boost shareholders’ value through acquisition of industrial assets. It specifically targets functional buildings at in-fill locations which enjoy high population densities and are situated near high volume distribution points.

Particularly, Terreno is fortifying its portfolio in six major port cities — Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. — that depict solid demographic trends and have strong barriers to entry which limit new supply. The company’s investment-driven growth strategy is highlighted by its active acquisition activities. On Dec 15, Terreno acquired an industrial property in Gardena, CA, for around $37.6 million. It is 100% leased to one tenant.

Terreno currently carries a Zacks Rank #3 (Hold). Encouragingly, in the year so far, shares of the company have outperformed the industry. While the stock has gained 22.1%, the industry has recorded growth of 2.7% during this period. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.



Better-ranked stocks in the REIT space include Franklin Street Properties (NYSE:FSP) , Columbia Property Trust (NYSE:CXP) and MedEquities Realty Trust (NYSE:MRT) . All three carry a Zacks Rank of 2 (Buy).

Franklin Street Properties’ Zacks Consensus Estimates for 2017 FFO per share remained unchanged at $1.05 over the past month. Its share price has edged down 0.3% in three months’ time.

Columbia Property Trust’s FFO per share estimates for the current year have moved up 1.8% to $1.15 in a month’s time. Its shares have gained 5.8% over the past three months.

MedEquities Realty’s FFO per share estimates for 2017 inched up 0.9% to $1.12 over the past two months. Its shares have lost 4.3% during the past three months.

Note: All EPS numbers presented in this report represent funds from operations (FFO) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

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MedEquities Realty Trust Inc. (MRT): Free Stock Analysis Report

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