Terreno Realty Corporation (NYSE: TRNO)seeing a notable pre-market surge on the US stock charts today, up 6.45% as of the last check that is bringing its share price to $63.20. This increase followed the announcement that the company will join the a prominent index.
Adding Terreno to S&P SmallCap 600
As part of their quarterly rebalancing, S&P Dow Jones indexes (S&P DJI) stated that several adjustments to the S&P 500, S&P MidCap 400, and S&P SmallCap 600 indexes will go into effect before to the market opening on Monday, December 23, 2024. These adjustments aim to ensure better representation of companies across market capitalization ranges. TRNO will take Hudson Pacific Properties Inc.’s spot in the S&P SmallCap 600 as part of the rearrangement.
TRNO is Diversifying Holdings
In an effort to expand its portfolio, Terreno last week bought an industrial site in Long Island City, Queens, New York. The purchase price was around $7.6 million. The 17,000-square-foot industrial distribution facility on 0.4 acres, features one dock-high, one van-level, and one grade-level loading position, as well as parking for seven vehicles.
Currently vacant, the property is expected to deliver a stabilized cap rate of 5.7%. The stabilized cap rate reflects annualized cash-based net operating income, adjusted for market occupancy (typically 95%), divided by the total acquisition cost. This cost accounts for purchase price, debt adjustments, due diligence expenses, and any near-term capital improvements needed for full stabilization.
New Lease Agreement Strengthens Revenue Streams
Terreno completed an 82,000 square foot leasing deal in Avenel, New Jersey, in a similar development. The tenant, a leading national wholesale tire distributor, will commence occupancy on December 31, 2024, under a lease that extends through January 2030. This transaction underscores Terreno’s ability to attract high-profile tenants and optimize asset utilization.
A Diversified Coastal Portfolio
Terreno specializes in industrial real estate across six major U.S. coastal markets, including New York City, Los Angeles, Miami, San Francisco, Seattle, and Washington, D.C. These strategic investments continue to position TRNO for sustained growth in dynamic urban regions.
