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Investing.com - Citizens JMP reiterated a Market Outperform rating and $66.00 price target on Terreno Realty Corp (NYSE:TRNO) following the company’s second-quarter 2025 activity report. The target represents potential upside from the current price of $57.65, though InvestingPro analysis suggests the stock is trading above its Fair Value.
The industrial real estate investment trust’s quarterly performance exceeded expectations from an operational standpoint, according to the research firm’s analysis. With a market capitalization of $5.96 billion and strong revenue growth of 22.17% over the last twelve months, Terreno maintains a GREAT financial health score according to InvestingPro metrics.
Despite broader macroeconomic volatility, Terreno reported minimal disruption to its leasing activities, with several new leases signed during the period, though most economic impact is expected after the quarter’s end.
The company’s deal flow is accelerating after a slow start to the year, with approximately $450 million in new deals identified since the beginning of the second quarter.
Citizens JMP noted that Terreno plans to match-fund this growth with asset sale proceeds, consistent with the company’s historical practice that has averaged 13% internal rate of return.
In other recent news, Terreno Realty Corporation reported several significant developments. The company has acquired an industrial property in Santa Ana, California, for approximately $49.5 million, featuring a 134,000-square-foot building fully leased to a major home improvement retailer. Additionally, Terreno Realty expanded its portfolio with the purchase of a Los Angeles property near LAX for about $10 million, which is fully leased to four tenants. The estimated stabilized capitalization rates for these acquisitions are 5.7% and 6.4%, respectively.
Moreover, Terreno Realty secured a new lease for a 3.0-acre land parcel in Rancho Dominguez, California, with a tenant in the environmental and regulated waste management sector. On the analyst front, Mizuho (NYSE:MFG) raised its price target for Terreno Realty to $53 while maintaining an Underperform rating, citing leasing progress but cautioning about potential demand slowdowns. Piper Sandler adjusted its price target to $60 from $61, maintaining a Neutral rating due to macroeconomic uncertainties affecting tenant decisions. The firm also revised down its funds from operations estimates for 2025 and 2026. These recent developments highlight Terreno Realty’s active management of its industrial real estate portfolio amidst changing market conditions.
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