Terreno Realty Corporation TRNO announced the disposition of an industrial property located in Torrance, CA. The sale was carried out on April 7, 2026, for approximately $31.1 million.
The property spans across 99,000 square feet on 4.7 acres, which is 100% leased. Terreno Realty had purchased the property on Jan. 31, 2018, for $17.5 million. The investment yielded an unleveraged internal rate of return of 10.3% to the company.
Terreno Realty’s dispositions are an integral part of its ongoing efforts to optimize its portfolio and enhance its financial performance. In the fourth quarter of 2025, the company sold properties worth $144.2 million. Total dispositions for the year 2025 aggregated $386.4 million.
Wrapping Up on TRNO
While the sale could lead to a slight near-term decline in rental income if the asset was contributing to revenues, reinvestment of the proceeds into higher-yielding opportunities is expected to support long-term earnings growth. The transaction may also enhance the company’s liquidity and financial flexibility, enabling it to fund future investments or manage its balance sheet more efficiently.
Over the past three months, shares of this Zacks Rank #2 (Buy) company have increased 7.8% compared with the industry's growth of 4.4%. Analysts seem bullish on this industrial REIT, with its 2026 FFO per share estimate moving 3 cents northward to $2.79 over the past two months.
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Other Stocks to Consider
Some other top-ranked stocks from the broader REIT sector are Prologis PLD and Ventas VTR, each carrying a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for PLD’s 2026 FFO per share is pegged at $6.14, which indicates year-over-year growth of 5.7%.
The Zacks Consensus Estimate for VTR’s full-year FFO per share stands at $3.84, which calls for an increase of 10.3% from the year-ago period.
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).