Terreno Realty Sells Industrial Asset in Bellevue, Boosts Flexibility

Core Viewpoint - Terreno Realty Corporation (TRNO) is strategically disposing of non-core assets to enhance flexibility and strengthen its portfolio for future growth [1][3]. Group 1: Disposition and Financial Performance - TRNO sold an industrial property in Bellevue, WA for approximately $17.5 million, which it had purchased in November 2020 for $11.7 million, yielding an unleveraged internal rate of return of 11.1% [1][2]. - In Q1 2025, TRNO sold two industrial distribution buildings for a total of around $24.9 million, further emphasizing its strategy of optimizing its portfolio [3]. Group 2: Market Focus and Expansion - The company is focused on expanding its asset base in six major coastal U.S. markets, including Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, DC, where demand for industrial real estate remains strong [4]. - As of March 31, 2025, TRNO had acquisitions worth approximately $55.9 million under contract and nearly $16 million under letters of intent, with five properties under development or redevelopment [5]. Group 3: Future Developments and Positioning - Post-completion of current developments, TRNO will have eight buildings totaling around 0.8 million square feet, with 48% leased [5]. - The company has around 22.4 acres of land for future developments, estimated at an investment value of approximately $392.8 million [5]. - TRNO is well-positioned for long-term growth opportunities, supported by a solid operating platform and a healthy balance sheet, despite facing macroeconomic uncertainties [6].