TRNO on a Selling Spree: Disposes of Another Asset in California

Terreno Realty Corporation TRNO announced the disposition of an industrial property located in Santa Fe Springs, CA. The sale was carried out on Aug. 7, 2025, for approximately $11 million. This move highlights the company’s strategy of disposing of non-core assets and building a more robust portfolio, which will aid future growth.

The property consists of a 2.3-acre improved land parcel, 100% leased.  Terreno Realty had purchased the property on Nov. 14, 2018, for $6.4 million. The investment yielded an unleveraged internal rate of return of 13.2% to the company.

Terreno Realty’s dispositions are an integral part of its ongoing efforts to optimize its portfolio and enhance its financial performance. Last month, the company sold an industrial property, a 100% leased 2.1-acre improved land parcel in Tukwila, WA, for $9.5 million.

In the same month, Terreno Realty sold a portfolio of industrial properties in Doral, FL. The portfolio of six buildings, spanning around 302,000 square feet on 14.6 acres of land and 91% leased to 21 tenants, was disposed of at an aggregate sale value of around $23.7 million.

Earlier this month, Terreno declared a dividend of 52 cents per share for the third quarter of 2025. This marked an increase of 6.1% over the prior dividend level. In the last five years, this industrial REIT has increased its dividend six times, with a five-year annualized dividend growth rate of 14.11%. These efforts to increase the dividend reaffirm investors’ confidence in the stock. Check out the Dividend History of the company.

Over the past month, shares of this Zacks Rank #2 (Buy) company have dropped 6.9% compared with the industry's decline of 2.5%.

Other Stocks to Consider

Some other top-ranked stocks from the broader REIT sector are W.P. Carey WPC and Host Hotels & Resorts HST, each currently carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for WPC’s 2025 FFO per share has moved one cent southward to $4.87 over the past week.

The consensus estimate for HST’s 2025 FFO per share has moved one cent northward to $1.95 over the past week.

Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.

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This article originally published on Zacks Investment Research (zacks.com).

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