Terreno Realty Corporation TRNO announced the disposition of an industrial property located in Commerce, CA. The sale was carried out on May 22, 2025, for approximately $97 million. This move highlights the company’s strategy of disposing of non-core assets and building a more robust portfolio, which will aid future growth.
The property consists of five multi-tenant industrial buildings spanning around 545,000 square feet on 24 acres of land. It is 99% leased to 12 tenants.
Terreno Realty had purchased the property on May 30, 2012, for $52.4 million. The investment yielded an unleveraged internal rate of 9.5% to the company.
TRNO’s Past Dispositions
Terreno Realty’s dispositions are an integral part of its ongoing efforts to optimize its portfolio and enhance its financial performance. Last week, the company sold an industrial property in Bellevue, WA, for $17.5 million. In the first quarter of 2025, Terreno Realty sold two properties with two industrial distribution buildings spanning around 88,000 square feet at an aggregate sale value of around $24.9 million.
Moreover, the company remains focused on acquiring and operating its asset base in the six major coastal U.S. markets — Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington, D.C. — as demand for industrial real estate space remains buoyant.
Over the past six months, shares of this Zacks Rank #3 (Hold) company have lost 5.8% compared with the industry's decline of 5.6%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader REIT sector are VICI Properties VICI and W.P. Carey WPC, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for VICI’s 2025 FFO per share has moved one cent northward to $2.34 over the past month.
The consensus estimate for WPC’s 2025 FFO per share has been revised upward by 1% to $4.88 over the past month.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
