Baird has increased its price target for Terreno Realty Corp (NYSE:TRNO) to $67.00 from $64.00 and retained an Outperform rating on the stock. The firm’s new valuation sits above the current trading level of $65.41, a gap that analysts’ consensus data indicate leaves the company modestly undervalued.
The analyst action accompanies what Baird describes as Terreno’s status as the best-performing industrial REIT year-to-date. Data referenced in the research show TRNO has produced an 11.41% total price return so far this year. The company has also maintained a record of raising its dividend for 12 consecutive years.
Baird attributes part of the stock’s rally to a correction in what it characterizes as overly bearish sentiment tied to short-term earnings variability. The firm highlights an improving outlook for rental trends across Terreno’s coastal markets, which Baird believes have bottomed and are showing signs of returning to growth - a dynamic the research firm says has supported the shares.
Beyond the market’s sentiment shift, Baird points to the company’s underlevered balance sheet as a source of incremental upside. The analyst note frames this financial flexibility as a tool Terreno can use to drive growth, supporting a continued positive view on the REIT.
Recent corporate developments
- Terreno has secured a $200 million five-year unsecured term loan that matures on January 15, 2031. The loan carries an interest rate that ranges from SOFR plus 1.15% to SOFR plus 1.65%, with the exact spread determined by leverage levels.
- The REIT completed the acquisition of an industrial asset in Tukwila, Washington, for approximately $27.1 million. The property is about 121,000 square feet and is located in the northern Kent Valley.
Other analyst moves and financial outlook
KeyBanc raised its price target on Terreno to $72 and maintained an Overweight rating after what it termed a favorable fourth-quarter 2025 performance from the company. In its model adjustments, KeyBanc trimmed its forecasted FFO for 2025 and 2026 by $0.01 per share, taking both years to $2.77 per share, while leaving the 2027 FFO estimate unchanged at $2.90 per share.
Separately, Baird is noted to have upgraded Terreno’s rating to Outperform, citing a positive outlook for 2026 even as it acknowledges potential earnings volatility. The firm’s price-target increase to $67 was framed within that broadly constructive stance.
The sequence of analyst revisions, financing activity and targeted acquisition underscores the company’s active capital deployment and the market’s reception to improving rental fundamentals in coastal industrial markets.