Stifel Starts Terreno Realty Corp (TRNO) at Buy

Stifel analyst Stephen Manaker initiates coverage on Terreno Realty Corp (NYSE: TRNO) with a Buy rating and a price target of $62.00.

The analyst commented, "TRNO is a smid-cap niche player in the industrial warehouse space. It focuses on only six markets, each with high barriers and all close to large numbers of consumers. The REIT delves into those markets by looking at sub-markets, and is constantly evaluating the prospects for future rent growth for each one. This has caused TRNO to be a willing seller, and the REIT has been able to fund much of its growth by recycling capital. Despite this and deploying low leverage (11.6% net debt/total enterprise value), the REIT has a decade’s long history of attractive asset and earnings growth. We believe this will continue, in large part because of the REIT’s loss-to-lease. We estimate 14% FFO growth in 2022 and 10% next year. The multiple isn’t inexpensive, but given the high quality markets, a number of land plays within the portfolio, and the large loss to lease, we believe there is room for expansion. While it doesn’t disclose an estimate of this metric, we estimate the PV of this is $0.57/share. When added to our current estimates, our 2022 FFO multiple moves to 21.0x from 27.1x (all else being equal)."

For an analyst ratings summary and ratings history on Terreno Realty Corp click here. For more ratings news on Terreno Realty Corp click here.

Shares of Terreno Realty Corp closed at $52.56 yesterday.

You May Also Be Interested In

• JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
• Terreno Realty Corp (TRNO) PT Raised to $75 at KeyBanc on 'Improving Demand'
• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August