Terreno Realty Corp

Latest Results (02.04.2026):

Terreno Realty Corporation reported its operating, investment and capital markets activity for the fourth quarter of 2025. Key takeaways: operating portfolio occupancy was 96.1% (same-store 97.2%); cash rents on new/renewed leases rose ~29.8% in Q4 and ~25.4% for the full year; Q4 acquisitions were ~$87.4M (full year ~$683.5M) and Q4 dispositions were ~$144.2M (full year ~$386.4M); the company raised $43.6M via ATMs in Q4 and had ~$200M drawn on a $600M revolver as of 12/31/2025.

Occupancy

Operating portfolio 96.1% leased at December 31, 2025 (down slightly from 96.2% at 9/30/25 and 97.4% at 12/31/24). Same-store occupancy was 97.2% (vs. 98.6% prior quarter). Improved land portfolio 95.4% leased. Vacancy includes ~205k sq ft (~100 bps) at Countyline Corporate Park Bldg 30; that space is ~84% pre-leased with leases expected to commence in H1 2026.

Rent growth & retention

Cash rents on new and renewed leases increased ~29.8% in Q4 on ~0.7M sq ft (tenant retention ratio 67.9%). For the full year 2025, cash rents rose ~25.4% on ~2.7M sq ft (tenant retention ~70.2% for operating portfolio).

Acquisitions and dispositions

Q4 2025 acquisitions: ~$87.4M for four industrial properties (approx. 319k sq ft + 0.7 acres). Full-year acquisitions: ~$683.5M. Q4 disposition: sale of a 603k sq ft NJ building for ~$144.2M (unleveraged IRR ~13.4% on that investment). Full-year dispositions: ~$386.4M across eight properties (unleveraged IRR ~12.2%). The company reported ~$21.2M of acquisitions under contract/LOI and ~$62.7M of dispositions under contract.

Development & redevelopment

Commenced one development in Q4 with expected investment of ~$55.5M; two developments commenced during 2025 totaling ~$109.6M. Completed redevelopment/stabilization of one Q4 property (total investment ~$35.8M). As of 12/31/2025, six properties under development/redevelopment (nine buildings, ~1.2M sq ft) ~49% pre-leased; total expected investment across those projects ~ $372.5M.

Capital markets & 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 totaled 4,206,371 shares for ~$281.0M (weighted avg $66.81). No share repurchases in 2025. Revolver usage: ~$200M outstanding on a $600M facility at year-end. Near-term debt maturities: $50M in July 2026 and $150M in 2027.

Notable lease and one-time items

Executed a 226k sq ft lease in Newark (ODM of cloud hardware) commencing 11/1/25; to facilitate it, Terreno terminated the in-place lease effective 10/31/25 and received an early termination payment of ~ $13.5M and expects to record a net revenue increase of ~ $4.4M in Q4 2025 related to write-offs/straight-line adjustments. Additional significant leases and pre-leases include Countyline Phase IV progress (Building 36 100% pre-leased) and several multi-year renewals and new leases across Terreno’s coastal markets.