ALEXANDRIA, Va. – Terreno Realty Corporation (NYSE:), a company specializing in the acquisition, ownership, and operation of industrial real estate in key U.S. coastal markets, has expanded its portfolio with the purchase of a significant industrial property in Alexandria, Virginia. The transaction, which took place on Monday, involved a purchase price of approximately $84.3 million.
The newly acquired asset includes four industrial distribution buildings, encompassing roughly 357,000 square feet, situated on 19.1 acres of land. Located at 6584-6674 Fleet Drive, the site benefits from its proximity to major transportation hubs, being just two miles from the interchange of I-95/395 and I-495, known as the Capital Beltway. The property boasts 67 dock-high and 38 grade-level loading positions, alongside parking facilities for 580 cars.
Fully occupied by 21 tenants, the property has leases that are set to expire by 2031. Terreno Realty reported an estimated stabilized cap rate of 5.3% for the property. The stabilized cap rate is a metric used to estimate the expected return on an investment property, factoring in market occupancy rates and acquisition costs, among other expenses.
Terreno Realty Corporation’s investment strategy focuses on industrial properties located in six major coastal markets in the United States, including Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C.
The information regarding this acquisition is based on a press release statement from Terreno Realty Corporation.
InvestingPro Insights
Terreno Realty Corporation (NYSE:TRNO) continues to demonstrate a robust financial profile, with recent data reflecting the company’s strong market presence and steady performance. According to InvestingPro metrics, Terreno Realty has a market capitalization of $5.74 billion, underscoring its significant standing in the industrial real estate sector. The company’s P/E ratio stands at 32.81, which may suggest a premium valuation compared to industry peers.
Investors looking at the company’s revenue streams will note a healthy growth pattern, with revenue for the last twelve months as of Q4 2023 reaching $323.59 million, marking a 17.15% increase. This is complemented by a robust gross profit margin of 75.56%, illustrating the company’s efficiency in managing its cost of sales relative to its revenue.
One of the InvestingPro Tips for Terreno Realty points out that the company has raised its dividend for 10 consecutive years, reflecting a commitment to returning value to shareholders. In addition, the company has maintained dividend payments for 14 consecutive years, which is a testament to its financial stability and reliability as an income-generating investment. For investors who prioritize dividend consistency and growth, these attributes may be particularly appealing.
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