Terreno Realty Extends Lease - Analyst Blog


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Adding catalysts to its top line, industrial real estate investment trust (REIT) - Terreno Realty Corporation ( TRNO ) - disclosed two lease extension deals at its industrial properties in South Brunswick, N.J. and Doral, Fla.

Projected to lower the company's estimated 2014 lease expirations by around 40% (as of Jun 30, 2013) the deals are a strategic fit for the company as the moves would help it enjoy steady revenue from these properties in the upcoming quarters.

At its South Brunswick property, the deal is penned with Terreno Realty's largest tenant by square footage, for an extension for a 1-year period of 413,092 square feet of space. The lease will expire on Mar 2015.   

The other deal involved a lease extension for one year inked with the company's largest tenant at the Americas Gateway project (acquired in May 2013) in Doral. The lease is for 56,800 square feet of space and will be terminated in Jan 2015.

Terreno Realty owns and operates industrial real estate properties mainly in 6 major coastal markets of the U.S. - the high barriers-to-entry markets of Los Angeles; Northern New Jersey/New York City; San Francisco Bay Area; Seattle; Miami; and Washington, D.C./Baltimore. Lately, Terreno Realty has been active in capitalizing on opportunities to strengthen its foothold in these areas and opted for acquisitions as well as lease extension and renewal deals.

Last month, Terreno Realty announced the acquisition of an industrial property in Newark, N.J. The company shelled out about $15.0 million for this trans-shipment industrial building spanning 52,000 square feet across 9.4 acres and is 100% leased.

Earlier, in June, Terreno Realty purchased an industrial property in West Caldwell, N.J. stretching over 93,000 square feet across 8.9 acres (100% leased) for approximately $6.8 million.

Terreno Realty currently holds a Zacks Rank #3 (Hold). REITs that are performing better and deserve a look include CubeSmart ( CUBE ), Extra Space Storage Inc. ( EXR ) and Highwoods Properties Inc. ( HIW ), all carrying a Zacks Rank #2 (Buy).

CUBESMART (CUBE): Free Stock Analysis Report

EXTRA SPACE STG (EXR): Free Stock Analysis Report

HIGHWOODS PPTYS (HIW): Free Stock Analysis Report

TERRENO REALTY (TRNO): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
More Headlines for: CUBE , EXR , HIW , TRNO

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