Terreno Realty Corporation TRNO recently announced it has pre-leased 50% of Countyline Corporate Park Phase IV Building 32 in Hialeah, FL. The pre-leasing reflects the solid demand for the company’s properties.
The lease will run for 10 years with an aircraft engine maintenance, repair and overhaul provider and encompass 82,000 square feet of space. It will start upon the completion of building construction and tenant improvements expected to be in June 2025.
Countyline Corporate Park Phase IV comprises a 121-acre project entitled for 2.2 million square feet of industrial distribution buildings in Miami’s Countyline Corporate Park. It is a landfill redevelopment positioned adjacent to Florida's Turnpike and the southern terminus of I-75, located at the intersection of NW 170th Street and NW 107th Avenue.
Building 32 of Countyline Corporate Park is a 164,000-square-foot, 36-foot clear-height rear-load industrial distribution building on 8.3 acres and is currently under construction. The building, with a total expected investment of $41.9 million and an estimated stabilized cap rate of 6%, is expected to achieve LEED certification.
Upon its anticipated completion in 2027, Countyline Phase IV is likely to comprise ten LEED-certified industrial distribution buildings, encompassing a total area of approximately 2.2 million square feet. These buildings will offer 660 dock-high and 22 grade-level loading positions, along with parking spaces for 1,875 cars. The estimated investment for this project is approximately $511.5 million. Moreover, TRNO’s Countyline Corporate Park Phase III and IV will comprise 17 industrial distribution buildings and 3.5 million square feet.
Final Thoughts on TRNO Stock
With a solid operating platform, a healthy balance sheet position and strategic expansion moves, TRNO seems well-positioned to capitalize on long-term growth opportunities amid favorable industry fundamentals. This Countyline project strengthens Terreno's strategic positioning in the regional industrial real estate sector. With an advantageous location, the buildings are expected to lure tenants and enjoy high occupancy. However, the elevated supply of industrial real estate and broader market issues pose key concerns.
Over the past three months, shares of this Zacks Rank #3 (Hold) company have declined 12.7% compared with the industry’s fall of 13%.
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Stocks to Consider
Some better-ranked stocks from the REIT sector are Crown Castle Inc. CCI and SL Green Realty SLG, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Crown Castle’s 2024 FFO per share has been raised a cent upward over the past two months to $7.00.
The Zacks Consensus Estimate for SL Green’s 2024 FFO per share has been revised 2.9% north over the past month to $7.83.
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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
