TRNO - Terreno Realty: Nominal Growth Over Per Share Growth

2024-06-18 08:38:13 ET

Summary

• Terreno Realty owns warehouses in major coastal areas, with a focus on value-add and core investments.
• The company focuses on absolute growth rather than growth per share, leading to caution from investors.
• Recent acquisitions at tight cap rates and focus on growth over per-share value creation make me cautious here.

In April, I believed that Terreno Realty ( TRNO ) was focusing too much on absolute growth, rather than growth per share. With the company and peers warning for declining occupancy levels, slower rental growth, and the Fed at the time looking like it was holding rates steady for longer, shares were out of favor....

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