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Terreno Boosts Portfolio With Acquisition in Long Island City Queens

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Terreno Realty (TRNO - Free Report) announced the purchase of an industrial property in Long Island City Queens, NY, for around $7.6 million with an estimated stabilized cap rate of 5.7%. The property is a vacant industrial distribution building spanning around 17,000 square feet on 0.4 acres.

To facilitate efficient dispersal, the property is equipped with one dock-high, one van-level and one grade-level loading position and has parking for seven cars. Located at 48-29 31st Place, it is conveniently accessible to I-495 (Queens Midtown/Long Island Expressway), around one mile from the Queens Midtown Tunnel.

This REIT, which focuses on the acquisition, ownership and operation of industrial real estate in six major coastal U.S. markets, has purchased four industrial properties and one portfolio of industrial properties for $499.4 million inclusive of acquisition costs in the first nine months of 2024.

Apart from acquisitions, Terreno Realty is making strategic development and redevelopment efforts. In November, it announced the completion and stabilization of Countyline Corporate Park Phase IV Building 39 in Hialeah, FL, which has been 100% leased to one tenant. Also, TRNO disclosed a redevelopment completion at Terreno 147th Street in Hawthorne, CA, which is fully leased to an atomic energy company.

This industrial REIT has been experiencing healthy demand for its properties from both existing and new tenants. Recently, TRNO announced the execution of a lease for 82,000 square feet in Avenel, NJ. Earlier, the company announced the execution of an early lease renewal in Jamaica Queens, NY, with a manufacturer of pre-cooked meals.

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. However, subdued demand and elevated supply of industrial real estate in some markets are concerns.

Shares of this Zacks Rank #3 (Hold) company have gained 5.2% in the past six months compared with the industry’s 13% growth.

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Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Welltower (WELL - 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 Welltower’s 2024 FFO per share is pegged at $4.26, suggesting year-over-year growth of 17%.

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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