TRNO Eyes Growth With New York and California Property Buyouts

Core Viewpoint - Terreno Realty Corporation (TRNO) is actively expanding its industrial property portfolio through recent acquisitions, including a $31.1 million purchase in Long Island City, NY, and a $49.5 million acquisition in Santa Ana, CA, aiming to enhance its presence in major industrial markets [1][4]. Group 1: Recent Acquisitions - TRNO acquired an industrial property in Long Island City, Queens, NY, for $31.1 million, which is situated on 2.2 acres and includes a distribution building of approximately 48,000 square feet [1][2]. - The Santa Ana property, purchased for $49.5 million, consists of a 134,000 square foot industrial distribution building on 12.1 acres, fully leased to a major home improvement retailer [4][9]. - Prior to these acquisitions, TRNO also purchased another industrial property in Long Island City for $16 million [4]. Group 2: Redevelopment Plans - The Long Island City property is set for redevelopment with a total investment of around $40.2 million, including upgrades such as a redesigned truck loading area and new office and warehouse space, expected to be completed by 2026 [3]. - The estimated stabilized cap rate for the Long Island City redevelopment is projected at 5.5% [3]. Group 3: Capital Recycling Strategy - TRNO follows a disciplined capital-recycling strategy, having sold two properties for a total of approximately $114.5 million in May 2025, which allows the company to reinvest in active deals and pending acquisitions [5][9]. - In early June 2025, TRNO acquired another industrial property in Los Angeles for around $10 million [5]. Group 4: Market Position and Trends - TRNO is well-positioned to enhance its portfolio across six major coastal U.S. markets, including New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle, and Washington, D.C., which exhibit strong demographic trends and demand for industrial real estate [6]. - Despite the expansion efforts, macroeconomic uncertainties and tariff issues are noted as significant concerns for the company [6]. Group 5: Stock Performance - TRNO's shares have declined by 2.3% over the past three months, contrasting with a 1.3% increase in the industry [8].