Terreno Realty Corp

Latest Results (14.05.2026):

Terreno Realty Corporation (Terreno Realty Corp.) — fourth quarter of 2025: Operating results show high portfolio occupancy with modest quarter-over-quarter softness, very strong rent growth on new/renewed leases, meaningful acquisition and disposition activity, ongoing development work, and active capital markets issuance that boosted liquidity. Key metrics include 96.1% operating occupancy, a 29.8% increase in cash rents on Q4 new/renewed leases, $87.4 million of Q4 acquisitions ($683.5 million full year), $144.2 million of Q4 dispositions ($386.4 million full year), and $43.6 million of ATM equity raised in Q4.

Portfolio occupancy

Operating portfolio was 96.1% leased at December 31, 2025 (96.2% at 9/30/25; 97.4% at 12/31/24). Same-store occupancy was 97.2% (98.6% at 9/30/25; 98.2% a year ago). Improved land was 95.4% leased. Vacancy included ~205,000 sq ft (~100 bps) at Countyline Corporate Park Building 30 related to a tenant bankruptcy; that space is 84% pre-leased with new leases expected in H1 2026.

Leasing and rent growth

Cash rents on new and renewed leases commencing in Q4 (≈0.7M sq ft + 2.9 acres) increased ~29.8%; same metric for the full year rose ~25.4% (≈2.7M sq ft + 24.4 acres). Tenant retention was 67.9% in Q4 and ~70.2% for the year (operating portfolio). Notable leases: 226k sq ft in Newark (ODMed hardware OEM) with a negotiated $13.5M early-termination payment and an expected ~$4.4M net revenue increase in Q4; new leases at Countyline Building 30 (112k and 61k sq ft) and a 117k sq ft lease in Doral that commenced 12/31/25.

Acquisitions and dispositions

Q4 acquisitions: four industrial properties (≈319k sq ft + 0.7 acres) for ≈$87.4M; full year acquisitions ≈$683.5M (24 buildings ≈2.0M sq ft). Q4 dispositions: sale of a 603k sq ft distribution building in South Brunswick for ≈$144.2M (unleveraged IRR 13.4%); full year dispositions ≈$386.4M (IRR ≈12.2%). Company reported ≈$21.2M of acquisitions under contract or LOI and ≈$62.7M of dispositions under contract (per company disclosure).

Development and redevelopment activity

Commenced Countyline Corporate Park Phase IV Building 35 in Q4 (≈220k sq ft) with total expected investment $55.5M (LEED targeted). In 2025 commenced two properties with expected investment $109.6M. Q4 completed redevelopment/stabilization of one property (49-10 27th Street) with total investment $35.8M; 2025 completions totaled three properties ($117.0M). As of 12/31/25, six properties under development/redevelopment (nine buildings, ≈1.2M sq ft) with ~49% pre-leased and total expected investment ≈$372.5M.

Capital markets and liquidity

Issued 700,000 shares under the ATM in Q4 for gross proceeds of $43.6M (weighted avg $62.27/share); full year ATM issuance was 4,206,371 shares for $281.0M (weighted avg $66.81/share). No share repurchases in 2025. Revolving credit facility outstanding balance was ≈$200M of a $600M facility as of 12/31/25. Debt maturities noted: $50M due July 2026 and $150M due in 2027.

Other notable items

Purchased two long-term leases in bankruptcy for $1.25M (terminated 12/31/25) on land parcels in Carlstadt, NJ and Hayward, CA. The Newark lease transaction included a $13.5M early termination payment and an expected ~$4.4M one-time net revenue benefit in Q4 from write-offs and straight-line rent adjustments. Company expects to file its 2025 Form 10-K on or about February 4, 2026.