Terreno Realty buys LA industrial site near LAX for $10M

LOS ANGELES - Terreno Realty Corporation (NYSE:TRNO), a company specializing in industrial real estate with a market capitalization of $6.1 billion, has expanded its portfolio with the acquisition of a property in Los Angeles, California. The property, purchased on Monday for approximately $10 million, is located at 11100 Hindry Avenue, adjacent to Los Angeles International Airport. According to InvestingPro data, the company has maintained strong financial health with a "Great" overall score of 3.09 out of 5.

The newly acquired asset includes a single industrial flex building, which spans around 34,000 square feet on a 1.5-acre site. The strategic location west of I-405 enhances the property’s accessibility and logistical advantages. The building is currently fully leased to four tenants, with lease agreements set to expire by September 2028. This acquisition aligns with the company’s successful growth strategy, reflected in its impressive 22.17% revenue growth over the last twelve months.

Terreno Realty reported an estimated stabilized cap rate of 6.4% for the property. The cap rate—a key metric in real estate investments—represents the expected rate of return on the property based on the income it is predicted to generate. InvestingPro analysis reveals that Terreno has consistently delivered value to shareholders, having raised its dividend for 11 consecutive years, with a current dividend yield of 3.32%. This figure is calculated considering the net operating income when the property reaches what is deemed market occupancy, typically around 95%, and is divided by the total acquisition cost. These costs include not only the purchase price but also any expenses related to due diligence, closing, and projected expenditures for capital improvements and leasing activities necessary for stabilization.

The acquisition reflects Terreno Realty’s continued focus on industrial properties in major coastal markets of the United States, which include New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle, and Washington, D.C.

While the press release from Terreno Realty Corporation contains forward-looking statements regarding performance expectations and cap rate estimations, these are subject to market risks and uncertainties. Investors are reminded that such forward-looking statements are based on management’s current beliefs and assumptions and do not guarantee future performance. For comprehensive analysis and detailed insights, investors can access the full Pro Research Report available on InvestingPro, which covers this and over 1,400 other US stocks with expert analysis and actionable intelligence.

This news is based on a press release statement from Terreno Realty Corporation, without any additional speculation or forecast. For more information about Terreno Realty Corporation, interested parties can visit the company’s website.

In other recent news, Terreno Realty Corporation has secured a new tenant for a 3.0-acre land parcel in Rancho Dominguez, California. The lease, involving a firm in the environmental and regulated waste management sector, is set for three years, concluding in May 2028. Additionally, Terreno Realty expanded its portfolio by purchasing an industrial property in Redmond, Washington, for approximately $9.3 million. The 33,000-square-foot building is fully leased on a short-term basis, with plans for renovation to achieve a 5.5% stabilized capitalization rate post-renovation.

Piper Sandler has adjusted its financial outlook for Terreno Realty, lowering the stock’s price target to $60 from $61 while maintaining a Neutral rating. The firm cited macroeconomic uncertainties related to tariffs as factors that could moderate rent growth. Furthermore, Piper Sandler revised the company’s forecasted funds from operations for 2025 and 2026, reducing estimates to $2.56 and $2.64, respectively. The firm also adjusted Terreno Realty’s acquisition expectations for 2025 to $270 million, down from the previous $700 million estimate.

Despite these changes, Piper Sandler analysts maintain a positive outlook on Real Estate Investment Trusts (REITs), including Terreno Realty, highlighting the sector’s resilience amid market volatility. They noted increased tenant demand for bi-coastal warehouses, which supports Terreno Realty’s strategic focus. These developments reflect Terreno Realty’s ongoing activities in the industrial real estate sector.

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