NEW YORK - Terreno Realty Corporation (NYSE:TRNO), a $6.3 billion market cap company specializing in the acquisition and operation of industrial real estate in major U.S. coastal markets, has expanded its portfolio with the purchase of a large industrial property in Red Hook, Brooklyn. According to InvestingPro data, the company maintains strong financial health with a "GREAT" overall rating and has raised its dividend for 11 consecutive years. The transaction, which took place on December 11, 2024, involved a purchase price of approximately $156.3 million, including the assumption of a $72.9 million loan.
The newly acquired property is a 312,000-square-foot industrial distribution building with a 36-foot clear height, located at 280 Richards Street. It sits on a 16-acre lot and features amenities such as five dock-high and five grade-level loading positions, as well as parking for 349 cars, including 179 rooftop spots. The site also has riparian access and is currently fully leased to a leading e-commerce firm. Terreno Realty disclosed that the estimated stabilized cap rate, a measure of the property's potential return, is 4.8%. The company's strong operational performance is reflected in its 16.7% revenue growth over the last twelve months, with analysts expecting continued growth this year. For detailed financial analysis and 10+ additional ProTips, visit InvestingPro.
Terreno Realty's investment strategy focuses on key urban centers, and the company currently operates in New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle, and Washington, D.C. This acquisition aligns with their strategic presence in high-demand coastal markets.
The company calculates the estimated stabilized cap rates by dividing the annualized cash basis net operating income, adjusted for market occupancy, by the total acquisition cost. The total cost includes the purchase price, debt assumption adjustments, due diligence, closing costs, and any near-term capital expenditures and leasing costs necessary for stabilization.
The information provided in this article is based on a press release statement from Terreno Realty Corporation. As with all investments, forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. Based on InvestingPro's Fair Value analysis, the stock is currently trading above its estimated Fair Value. Investors are reminded to exercise caution when relying on these projections. For comprehensive analysis including Fair Value estimates, financial health scores, and detailed metrics, access the full Pro Research Report available for this and 1,400+ other US stocks on InvestingPro.
In other recent news, Terreno Realty Corp (NYSE:TRNO) has seen a series of developments. The company reported an increase in occupancy to 97%, a 1% rise from the previous quarter. Their cash rent spreads, however, fell to 24%, approximately half of what they were earlier in the year. Despite this, Terreno Realty completed a $7.6 million acquisition in Washington D.C. and boosted its borrowing capacity to $800 million, facilitated by a consortium of banks including KeyBanc Capital Markets and KeyBank National Association.
Piper Sandler and KeyBanc maintained an Overweight rating on Terreno Realty shares, citing steady fundamentals. However, Mizuho (NYSE:MFG) Securities downgraded the company from Neutral to Underperform, predicting a slowdown in total growth and an increase in vacancy rates within its sub-markets. These recent developments reflect the ongoing activities and analyst perspectives surrounding Terreno Realty Corp.
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