Terreno Sells Property in Commerce, CA, Boosts Financial Flexibility

Core Viewpoint - Terreno Realty Corporation (TRNO) is strategically disposing of non-core assets to strengthen its portfolio and support future growth, as evidenced by the recent sale of an industrial property in Commerce, CA for approximately $97 million [1][2]. Disposition Details - The property sold consists of five multi-tenant industrial buildings totaling around 545,000 square feet on 24 acres, with a leasing rate of 99% to 12 tenants [1]. - The property was originally purchased on May 30, 2012, for $52.4 million, yielding an unleveraged internal rate of return of 9.5% [2]. - Recent dispositions include a sale in Bellevue, WA for $17.5 million and two properties in Q1 2025 with a combined sale value of approximately $24.9 million [3]. Market Focus - The company is concentrating on acquiring and operating assets in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C., due to strong demand for industrial real estate [4]. - Over the past six months, TRNO shares have decreased by 5.8%, slightly underperforming the industry decline of 5.6% [4]. Comparative Analysis - Other REITs with better rankings include VICI Properties and W.P. Carey, both rated Zacks Rank 2 (Buy), indicating potential investment opportunities in the broader sector [5].