Terreno Discloses 2Q Investments - Analyst Blog

In a recent announcement, San Francisco-based Terreno Realty Corporation (TRNO) revealed that during the second quarter, the company purchased 5 industrial properties stretching over 869,000 square feet. In total, these 5 properties consist of 11 buildings and the company shelled out approximately $61.6 million for these acquisitions.

With these acquisitions, Terreno Realty's owned buildings count reaches 80. Spanning 6.1 million square feet, these properties were approximately 89.1% occupied by 139 tenants. Notably, the acquisition of 333,000 square feet of vacant space during the quarter has lowered the occupancy from 93.3% at Mar 31, 2013 and 91.3% at Jun 30, 2012. Going forward, we expect these acquisitions by Terreno Realty to aid top-line improvement and benefit from a diversified tenant base.

Among the 5 properties that were acquired by this real estate investment trust (REIT), the first one is situated at 240 Littlefield in South San Francisco, CA – an 85,000 square feet industrial building that was acquired vacant for around $8.4 million. The second one is located at 101st Road – a 52,500 square feet industrial building and a neighboring improved 2.28 acre lot in Medley, FL purchased for about $6.0 million with both the building as well as the improved lot being fully leased.

The third property – Americas Gateway – comprised 6 buildings in Doral, FL. The company paid $23.7 million for this portfolio that spans 307,000 square feet. These multi-tenant distribution buildings were 70% occupied at the time of purchase.

The fourth is Route 100 in Elkridge, MD, acquired for roughly $16.7 million. The property comprises two buildings that span 348,500 square feet. The two multi-tenant industrial distribution buildings were 64% leased at acquisition.

The fifth property is situated at 1 Dodge Drive in West Caldwell, NJ. The company shelled out about $6.8 million for this purchase. Spanning 93,000 square feet this multi-tenant industrial building is currently 100% leased.

Terreno Realty owns and operates industrial real estate properties mainly in 6 major coastal markets of the U.S. – the high barriers-to-entry markets of Los Angeles, Northern New Jersey, San Francisco Bay Area, Seattle, Miami and Washington D.C./Baltimore. Recently, Terreno Realty has been active in capitalizing on opportunities to strengthen its foothold in these areas and opted for acquisitions as well as lease extension and renewal deals.

Terreno Realty currently holds a Zacks Rank #1 (Strong Buy). Other better performing REITs include Sunstone Hotel Investors, Inc. (SHO), Winthrop Realty Trust (FUR) and W. P. Carey Inc. (WPC). All these stocks carry a Zacks Rank #1 (Strong Buy).