Goldman Sachs Initiates Terreno Realty Corporation at Neutral (TRNO)

Goldman Sachs is out with its report today on Terreno Realty Corporation

, initiating TRNO at Neutral with a $19 PT. In a note to clients, Goldman Sachs writes, "We initiate coverage of industrial REIT Terreno Realty Corp (

) with a Neutral rating and a 12-month price target of $19. TRNO began as a $182 mn blind pool IPO in February 2010 and since then has invested $142 mn in multi-tenant assets in six core markets (NJ/NYC, SF/SJ, LA, Miami, Seattle, Washington DC/Baltimore). Our key takeaway is that TRNO is undervalued for its current portfolio. Under $17, the shares trade below our NAV of $19 and book value of $17.50 vs. REITs that trade at 8% premium to forward NAV on average. The valuation arbitrage creates a favorable risk reward dynamic for investors, with modest downside risk." Shares of TRNO closed Tuesday at $16.74, down 0.30% from Monday's close.