| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 43.64 | -29 |
| Intrinsic value (DCF) | 26.71 | -57 |
| Graham-Dodd Method | 20.52 | -67 |
| Graham Formula | 49.33 | -20 |
Terreno Realty Corporation (NYSE: TRNO) is a leading industrial real estate investment trust (REIT) specializing in high-demand coastal U.S. markets, including Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. The company focuses on acquiring, owning, and operating industrial properties that cater to logistics, warehousing, and distribution needs—critical infrastructure in today’s e-commerce-driven economy. As of recent data, Terreno owns 219 buildings totaling approximately 13.1 million square feet, along with 22 improved land parcels. Its strategic locations near major ports, transportation hubs, and urban centers enhance its competitive positioning. Terreno operates as a Maryland-based REIT, offering tax-efficient returns to investors. With a market cap exceeding $5.6 billion, the company is well-positioned to capitalize on the growing demand for industrial real estate driven by supply chain modernization and last-mile delivery trends.
Terreno Realty Corporation presents an attractive investment opportunity due to its focus on high-barrier-to-entry coastal markets, which benefit from strong demand and limited supply. The company’s portfolio is well-diversified across key logistics hubs, ensuring stable occupancy and rental income. With a solid balance sheet, low leverage (total debt of ~$823M against a market cap of ~$5.7B), and consistent dividend payouts ($1.92 per share), TRNO appeals to income-focused investors. However, risks include exposure to economic cycles, potential interest rate hikes affecting financing costs, and competition from larger industrial REITs. The stock’s beta of 1.085 suggests moderate volatility relative to the broader market.
Terreno Realty Corporation differentiates itself through its targeted focus on coastal industrial properties, which are among the most supply-constrained and high-demand markets in the U.S. Its competitive advantage lies in its strategic asset locations near major ports and urban centers, which are critical for e-commerce and logistics tenants. Unlike larger, diversified REITs, Terreno’s specialized approach allows for deeper market expertise and higher rent growth potential. The company’s internally managed structure enhances operational efficiency and cost control. However, its smaller scale (~13.1M sq. ft.) compared to industry giants like Prologis limits its ability to negotiate large-scale leases. Terreno’s occupancy rates and rental spreads benefit from tight market conditions, but it faces competition from both public and private players in acquiring premium assets. Its disciplined capital allocation and low leverage provide flexibility in a rising rate environment, though acquisition costs in core markets remain high.