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Terreno Realty (TRNO) Buys Industrial Property in Fremont

Terreno Realty Corporation TRNO recently announced the acquisition of a Fremont, CA-based industrial property for nearly $7.3 million. The transaction was closed on Sep 28.  

The 41,000-square-foot property, spread on 2.1 acres of land, is an industrial distribution building. Located between Interstates 880 and 680 at 45861 Hotchkiss Street, this building offers easy accessibility and is currently unoccupied.

Nonetheless, post renovation, the property will incorporate two grade-level and four dock-high loading positions. Moreover, it will provide parking facilities for 112 cars. The estimated stabilized cap rate of the building is 5.2%.

Notably, Terreno Realty is making efforts to expand its portfolio on the back of strategic acquisitions. Most recently, the company acquired an industrial property in Newark, for nearly $13.2 million. The 7.2 acre improved land parcel is situated adjacent to U.S. Routes 1 and 9.

These acquisitions are anticipated to bolster Terreno Realty’s bottom line in the near term. This San Francisco-based real estate industrial trust (REIT) actively focuses on leveraging the improving fundamentals of industrial markets, fortifying its business in the key coastal U.S. markets, such as Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington, D.C./Baltimore.

Encouragingly, year to date, shares of Terreno Realty have outperformed the industry. While the company’s shares have gained 27%, the industry has recorded growth of 4.5% during this period.

Also, in the last 30 days, its current quarter and full-year 2017 funds from operations (FFO) per share estimates remained unchanged. Terreno Realty currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Better-ranked stocks in the REIT space include Seritage Growth Properties SRG, Communications Sales & Leasing, Inc. UNIT and Prologis Inc. PLD. All these stocks carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Seritage’s 2017 FFO per share estimates inched up 0.5% to $2.01 in the past 60 days.

Communications Sales & Leasing’s 2017 FFO per share estimates climbed 14.4% to $2.54 in two month’s time.

Prologis’ 2017 FFO per share estimates climbed 0.7% to $2.81 over the same time period.

Note: All EPS numbers presented in this write up 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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