BofA warns Fed risks policy mistake with early rate cuts
Investing.com - KeyBanc has lowered its price target on Terreno Realty Corp (NYSE:TRNO) to $64.00 from $70.00 while maintaining an Overweight rating on the industrial REIT. The company, currently trading at $55.64, has demonstrated strong dividend performance with 11 consecutive years of increases and maintains a healthy 3.74% yield.
The price target reduction reflects a more moderate growth outlook resulting from what KeyBanc describes as a "more difficult operating environment" for the industrial real estate sector.
Despite these challenges, KeyBanc noted that Terreno’s execution across its infill portfolio remains strong, pointing to the company’s 7.6% same-store net operating income growth, improved occupancy, and steady leasing activity in the most recent quarter.
The research firm highlighted that Terreno is accelerating transaction activity, "opportunistically recycling capital into higher growth, higher quality assets" that are accretive to the company’s net asset value.
Terreno stock currently trades at a 32% premium to other industrial REITs based on 2025 adjusted funds from operations multiples, with an implied capitalization rate of 5.1%, which is 120 basis points lower than its industrial REIT peers, excluding COLD and LINE.
In other recent news, Terreno Realty Corporation has made significant moves in the industrial real estate market. The company acquired a portfolio of nine industrial distribution buildings in Woodinville, Washington, for approximately $232.6 million. This acquisition involves about 720,000 square feet of industrial space, which is currently 91% leased to 26 tenants. Additionally, Terreno Realty announced an increase in its quarterly cash dividend by 6.1% to $0.52 per share for the quarter ending September 30, 2025.
In another transaction, Terreno Realty sold a portfolio of industrial properties in Doral, Florida, for about $82.3 million. The properties consist of six buildings that are also 91% leased to 21 tenants. Analysts have been active in assessing Terreno Realty’s recent performance, with Citizens JMP reiterating a Market Outperform rating and maintaining a $66 price target. Meanwhile, Mizuho (NYSE:MFG) raised its price target to $53, citing the company’s progress in leasing activities. These developments reflect Terreno Realty’s ongoing strategic adjustments in the real estate sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.