Terreno Realty to Lease in San Francisco - Analyst Blog

On Tuesday, Terreno Realty Corp. TRNO, the San Francisco, CA-based real estate investment trust (REIT), announced its plan to fully lease a 69,500 square feet building to a leading national airline catering company. The building is located at 240 Littlefield Avenue in South San Francisco. The lease expires in Sep 2029.

The property is adjacent to Highway 101 and less than a mile away from San Francisco International Airport. Notably, Terreno Realty had purchased 3.3 acre property at a price of $8.4 million in Apr 2013. Subsequently, the property had undergone a significant renovation. Before leasing it out, the company removed approximately 15,500 square feet of the building space and added 11 dock-high loading positions and trailer storage to it.

Terreno Realty is engaged in acquiring, owning and operating industrial real estate in the U.S. Its main areas of operations are the coastal markets in Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington D.C./Baltimore.

This lease comes on the heels of a series of acquisitions made by the company in recent times. This REIT inked two separate acquisition deals on two consecutive days this month, worth a combined value of $31.4 million. Moreover, in first-quarter 2014 and fourth-quarter 2013, the company purchased properties worth $33.8 million and $99.6 million, respectively.

The revenues generated through leasing out properties may be used for funding future acquisitions of the company.

Terreno Realty currently sports a Zacks Rank #1 (Strong Buy). Some other equity REITs worth considering include The GEO Group, Inc. GEO, W. P. Carey Inc. WPC and Aviv REIT, Inc. AVIV. While GEO Group and W. P. Carey hold the same Zacks Rank as Terreno Realty, Aviv REIT carries a Zacks Rank #2 (Buy).

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