Terreno Realty Corporation

What they do

Terreno acquires, owns and operates industrial real estate in New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle, and Washington, D.C. As of December 31, 2025, it owned 309 buildings (including one held for sale) totaling approximately 19.8 million square feet, 46 improved land parcels consisting of approximately 147.0 acres, and six properties under development or redevelopment. Its portfolio is concentrated in warehouse/distribution properties, which represented approximately 80.5% of total annualized base rent at year-end 2025.

Revenue drivers

• Warehouse/distribution — The largest segment, at approximately 80.5% of total annualized base rent as of December 31, 2025, consisting of single- and multiple-tenant facilities typically serving tenants greater than 10,000 square feet.
• Improved land — Represents approximately 10.1% of total annualized base rent as of December 31, 2025, used for industrial outdoor storage such as truck, trailer and car parking, and may be redeveloped in the future.
• Transshipment — Represents approximately 6.0% of total annualized base rent as of December 31, 2025, including truck terminals and other transshipment facilities that serve single and multiple tenants.
• Flex (including light industrial and R&D) — Represents approximately 3.4% of total annualized base rent as of December 31, 2025, with facilities that generally accommodate both office and warehouse/manufacturing activities.

Recent performance

Annual revenue grew from $221.9 million in 2021 to $476.4 million in 2025, while net income rose from $87.3 million to $403.0 million over the same period. Diluted EPS was $3.91 in 2025, up from $1.92 in 2024. Operating cash flow increased from $132.2 million in 2021 to $271.9 million in 2025. Recent quarterly revenue was $124.4 million for the quarter ended March 31, 2026, and $124.7 million for the quarter ended June 30, 2026. As of June 30, 2026, total assets were $5.71 billion, total liabilities were $1.28 billion, and shareholder equity was $4.43 billion.

Strategy

Terreno targets functional properties in infill locations that may be shared by multiple tenants and cater to customer demand within submarkets in its six coastal markets. It invests in warehouse/distribution, flex, transshipment, and improved land, and may redevelop improved land in the future. As of June 30, 2026, the company owned 316 buildings and reported warehouse/distribution at approximately 80.1% of total annualized base rent, flex at 4.1%, transshipment at 6.3%, and improved land at 9.5%. The company is internally managed and has elected to be taxed as a REIT.

Risks

• Geopolitical and trade policy disruptions — A decline in economic activity or supply chain disruptions caused by geopolitical changes, trade policies, tariffs or related government actions could adversely affect the company or its tenants.
• Tenant defaults and bankruptcies — Tenant bankruptcies, defaults on leases, or non-renewal of leases by tenants could reduce rental revenue and increase vacancy.
• Interest rate and financing exposure — Elevated interest rates, increased operating costs, and failure to obtain necessary outside financing could affect the company's debt service obligations and ability to make distributions.
• Development and redevelopment risks — Risks relating to real estate development, redevelopment, renovation and expansion activities include elevated inflation, supply chain disruptions and construction delays.

Outlook

The provided excerpts do not include specific forward-looking guidance from management. The 10-K and 10-Q forward-looking statements list risks and uncertainties that could cause actual results to differ materially from expectations, including the factors described under Risk Factors and MD&A. Management does not provide assurance on future performance in these excerpts.