Kent transport

Terreno Realty (TRNO) sees strong demand and rents property in Kent – July 6, 2022

Terreno Realty (TRNO Free Report) announced the execution of a full construction lease with a national building products distributor for approximately 117,000 square feet in Kent, WA. The lease started on June 30, 2022 and will expire in December 2029.

Recently, this industrial REIT also announced the signing of a lease with a student transportation provider for 4.4 acres of improved land in Seattle, WA. The lease started on June 30, 2022 and will expire in July 2025.

The industrial real estate market is enjoying strong fundamentals as demand for efficient logistics infrastructure and distribution networks has increased amid booming e-commerce, growing industries and companies striving to improve supply chain efficiency. Along with the rapid adoption of e-commerce, an increase in business inventory levels as a precaution for any supply chain disruptions should lead to long-term growth momentum for this sector.

This provides opportunities for industrial owners, including Terreno Realty, Prologis (PLD free report) and Rexford Industrial Realty, Inc. (REXR Free report), among other things, to take advantage of a favorable market environment.

Terreno Realty is also experiencing strong rental activity, which reflects good demand for its well-positioned properties. In addition to the aforementioned rental activities, TRNO recently signed a lease with a third-party logistics provider for a property in Kent, WA. It was a full-build lease for approximately 138,000 square feet of space. The lease started on June 30, 2022 and will expire in October 2027.

In addition, the Company announced the execution of an early lease renewal and extension for 7.2 acres of improved land in Newark, NJ. This lease with a direct manufacturer and importer of stone products, which was due to expire in February 2023, will now expire in February 2028.

Terreno Realty is also banking on growth opportunities and focusing on expanding its portfolio through acquisitions. With such expansion efforts, Terreno Realty is well positioned to enhance its portfolio in six major US coastal markets – Los Angeles, Northern New Jersey/New York, San Francisco Bay Area, Seattle, Miami and Washington, D.C. – that have strong demographic trends and see strong demand for industrial real estate.

Shares of Zacks Rank #3 (Hold) Terreno Realty are down 26.7% over the past three months, compared to a 15.8% drop for the sector. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Image source: Zacks Investment Research

Prologis carries a Zacks rank of 2 (buy) at present. Prologis’ long-term growth rate is projected at 9.8%. The Zacks consensus estimate for funds from operations (FFO) of PLD in 2022 per share has been revised upwards slightly over the past week.

Rexford Industrial Realty currently holds a Zacks Rank of 2. Rexford Industrial Realty revenue in 2022 is expected to grow 34% year-over-year. The Zacks consensus estimate for REXR’s 2022 FFO per share has been revised up more than 1% in the past week.

To note: Everything related to earnings presented in this article represents funds from operations (FFO) – a metric widely used to assess the performance of REITs.