National Securities Reiterates Buy Rating for Terreno Realty Co. (TRNO)
Terreno Realty Co. (NYSE:TRNO)‘s stock had its “buy” rating reissued by equities research analysts at National Securities in a report released on Monday. They currently have a $29.00 price target on the stock, up from their prior price target of $28.00. National Securities’ price objective suggests a potential upside of 5.57% from the company’s current price.
The analysts wrote, “TRNO 4Q and FY2016 Update: First and foremost, it is important to note that approximately 89.9% of TRNO’s leased space includes pre-determined fixed rental increases or (C)onsumer (P)rice (I)ndex-based rental increases. TRNO reported 4Q16 funds from operations (“FFO”) of $10.02mln or $0.22 per share, a record high, +10.6% Q/Q and +35.5% Y/Y on $29.84mln of revenue, +15.6% Q/Q and +23.3% Y/Y. The increase in revenue and both FFO measures are attributable to TRNO’s continued robust portfolio growth, adding 917, 110 rentable square feet for the TTM period, +8.3%, with a portfolio that as of 12/31/16 stood at 11,997,484. Congruent with increases in owned square footage, revenues, and FFO, is TRNO’s dividend, which was recently raised to $0.20 per share per quarter, +11.1% Q/Q and +25% Y/Y. As management continues to look for accretive expansion opportunities and increase operating efficiencies, another 700k square feet is under contract, we expect the consistent history of dividend increases following acquisitions to continue. With industrial real estate prices up significantly and TRNO’s highly attractive acquisition vintage profile, we expect management to continue to harvest gains in 2016 and recycle capital. To date in 2016, TRNO has booked some $7.14mln in gains on $22.5mln of sales with an acquisitions cost of $16.1mln, a healthy +40.19% on a 7.05% investment CAGR. As TRNO has demonstrated in the past, it is well adept at timing the market, both on the acquisition and financing front. The future remains bright for TRNO and we continue to favor the industrial REIT operators formed in 2010 and later, as their portfolios are absent legacy assets and more attractive on a relative basis. As of September 2016, industrial RE price indices have increased 8.1% Y/Y, trailing only multifamily which is up 13.47% for the same period. We’re maintaining our BUY rating and increasing our $28.00 price target to $29.00. “
Several other analysts also recently issued reports on the stock. Zacks Investment Research downgraded shares of Terreno Realty from a “buy” rating to a “hold” rating in a report on Tuesday, February 21st. Stifel Nicolaus upped their price target on shares of Terreno Realty from $28.00 to $29.00 and gave the company a “buy” rating in a report on Tuesday, February 14th. FBR & Co upped their price target on shares of Terreno Realty from $26.00 to $28.00 and gave the company a “market perform” rating in a report on Thursday, February 9th. Jefferies Group LLC upped their price target on shares of Terreno Realty from $27.00 to $29.00 and gave the company a “hold” rating in a report on Thursday, February 9th. Finally, Mitsubishi UFJ Financial Group reaffirmed a “neutral” rating and issued a $29.00 price target on shares of Terreno Realty in a report on Thursday, January 5th. Six investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. The stock presently has a consensus rating of “Hold” and an average target price of $28.83.
Shares of Terreno Realty (NYSE:TRNO) traded down 1.29% during trading on Monday, reaching $27.47. 164,176 shares of the company’s stock traded hands. The company has a market capitalization of $1.29 billion, a price-to-earnings ratio of 107.30 and a beta of 0.77. The stock has a 50-day moving average of $27.33 and a 200-day moving average of $27.15. Terreno Realty has a 1-year low of $21.87 and a 1-year high of $29.08.
The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 12th. Investors of record on Tuesday, March 28th will be paid a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 2.91%. The ex-dividend date of this dividend is Friday, March 24th. Terreno Realty’s payout ratio is 347.83%.
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Institutional investors have recently made changes to their positions in the stock. Bank of Montreal Can increased its position in shares of Terreno Realty by 17.6% in the third quarter. Bank of Montreal Can now owns 4,032 shares of the company’s stock valued at $111,000 after buying an additional 603 shares during the last quarter. Spirit of America Management Corp NY purchased a new position in shares of Terreno Realty during the third quarter valued at about $156,000. Nuveen Fund Advisors LLC purchased a new position in shares of Terreno Realty during the third quarter valued at about $202,000. Teza Capital Management LLC purchased a new position in shares of Terreno Realty during the fourth quarter valued at about $228,000. Finally, Tudor Investment Corp Et Al purchased a new position in shares of Terreno Realty during the fourth quarter valued at about $295,000. 99.62% of the stock is currently owned by institutional investors and hedge funds.
Terreno Realty Company Profile
Terreno Realty Corporation acquires, owns and operates industrial real estate in coastal markets in the United States, such as Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington, District of Columbia (DC)/Baltimore. The Company invests in a range of industrial real estate, including warehouse/distribution, flex (including light industrial and research and development) and trans-shipment.
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