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Terreno Realty Sells Industrial Property in Union City

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Terreno Realty Corporation (TRNO - Free Report) announced the disposition of a vacant industrial distribution building encompassing around 66,000 square feet on 3.0 acres of land in Union City, CA.  The sale was carried out for around $16.9 million on Jan. 7, 2025.

The move is part of the company’s financing strategy, through which it aims to maintain financial flexibility to facilitate long-term growth. 

Terreno Realty purchased the property on March. 26, 2015 for $7.4 million. The investment yielded an unleveraged internal rate of 13% to the company.

Tereno in a Snapshot

Terreno Realty’s dispositions are an integral part of its ongoing efforts to optimize its portfolio and enhance its financial performance. During the fourth quarter of 2024, the company disposed of three 112,000-square-foot industrial buildings for approximately $33.6 million and one 5.7-acres improved land parcel in Newark, NJ, for approximately $29.8 million.

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 amid favorable industry fundamentals. With advantageous locations, its buildings are expected to lure tenants and enjoy high occupancy.

Analysts seem bullish on this Zacks Rank #2 (Buy) company. The Zacks Consensus Estimate for its 2025 funds from operations (FFO) per share has been raised marginally to $2.67 in the past week.

Shares of the company have declined 7.5% in the past three months compared with the industry’s fall of 10.3%.

Zacks Investment Research
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Other Stocks to Consider

Some other top-ranked stocks from the broader REIT sector are Cousins Properties (CUZ - Free Report) and OUTFRONT Media (OUT - Free Report) , each carrying Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Cousins Properties’ 2024 FFO per share has moved marginally upward in the past two months to $2.68.

The consensus estimate for OUTFRONT Media’s 2024 FFO per share has increased by 1.8% over the past two months to $1.73.

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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