Terreno Realty Corp. TRNO announced that it has sold its Fremont, CA-based property for $13.4 million. This led to an estimated unleveraged internal rate of return of 15.1%, generated by the investment.
Importantly, in Mar 2010, Terreno had purchased the above-mentioned property for around $7.3 million. It comprises 2 industrial buildings, with around 141,000 square feet spanning 8.8 acres at 48603-48622 Warm Springs Boulevard. The property is fully leased to 6 tenants.
We expect this disposition to help the company reap capital, which can be reused for its growth needs. This San Francisco, CA-based industrial real estate investment trust (“REIT”) is focused on leveraging the strong fundamentals of industrial markets, so as to bolster its business across key coastal U.S. markets like Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington, D.C./Baltimore.
Notably, in first-quarter 2015, Terreno Realty purchased 5 industrial properties spanning 1.2 million square feet for approximately $151.6 million. These properties, comprising 11 buildings in total, are located in Florida, Washington, DC, Maryland and California.
However, currently, Terreno Realty carries a Zacks Rank #4 (Sell). Investors interested in REITs may consider stocks like First Industrial Realty Trust Inc. FR, Kilroy Realty Corp. KRC and Prologis, Inc. PLD. All these stocks hold a Zacks Rank #2 (Buy).
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