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SANTA ANA, Calif. - Terreno Realty Corporation (NYSE:TRNO), a $5.97 billion market cap industrial REIT currently trading above its InvestingPro Fair Value, has acquired an industrial property in Santa Ana, California for approximately $49.5 million, according to a press release statement.
The transaction, completed on June 20, involves a 134,000-square-foot industrial distribution building situated on 12.1 acres of industrial-zoned land. Located at 3500 West MacArthur Boulevard adjacent to Interstate 405 in Orange County, the property features seven dock-high and three grade-level loading positions.
The property is currently fully leased to a major home improvement retailer and is being operated as a retail location. The estimated stabilized capitalization rate for the acquisition is 5.7%.
Terreno Realty Corporation specializes in acquiring, owning, and operating industrial real estate across six major coastal U.S. markets: New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle, and Washington, D.C. The REIT has maintained a strong dividend track record, having raised its dividend for 11 consecutive years, with a current yield of 3.39%. Discover more financial insights and metrics with InvestingPro, which offers comprehensive analysis of over 1,400 US stocks.
The company calculates estimated stabilized cap rates as annualized cash basis net operating income at market occupancy (generally 95%) divided by total acquisition cost, which includes purchase price, due diligence, closing costs, and estimated near-term capital expenditures needed to achieve stabilization. The company maintains a healthy financial position with a Good overall InvestingPro Financial Health score, supported by liquid assets exceeding short-term obligations.
In other recent news, Terreno Realty Corporation has made significant strides in expanding its portfolio with new acquisitions and lease agreements. The company purchased an industrial property in Los Angeles for approximately $10 million, featuring a fully leased 34,000-square-foot building near Los Angeles International Airport. Additionally, Terreno Realty acquired a 33,000-square-foot industrial distribution building in Redmond, Washington, for about $9.3 million, with plans for renovation that will adjust the building size and yield a stabilized cap rate of 5.5%. In leasing developments, Terreno Realty secured a new tenant for a 3.0-acre parcel in Rancho Dominguez, California, under a three-year agreement with a firm in the environmental and regulated waste management sector.
On the financial analysis front, Piper Sandler adjusted its outlook on Terreno Realty, lowering the stock price target to $60 from $61 while maintaining a Neutral rating. The firm cited macroeconomic uncertainties related to tariffs as a factor that could affect tenant decision-making and rent growth. Piper Sandler also revised its forecast for Terreno Realty's funds from operations for 2025 and 2026, reflecting the potential impact of these uncertainties. The company raised approximately $235 million through a share issuance, which is expected to be used for acquisitions and to pay off existing debt. These recent developments highlight Terreno Realty's continued focus on strategic acquisitions and leasing activities in key coastal markets.
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