Terreno Realty Corporation Announces Quarterly Operating, Investment and Capital Markets Activity

Key Terms

at-the-market equity offering program financial

A program that lets a company sell newly issued shares directly into the open market at whatever the current trading price is, usually through a broker, and do so gradually over time instead of all at once. Investors care because it can dilute existing ownership and put steady selling pressure on the stock price, while giving the company a flexible, on-demand way to raise cash — like adding small amounts of water to a pool rather than dumping in a bucket.

revolving credit facility financial

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

internal rate of return financial

A percentage that represents the annualized yield an investment would earn, taking into account the timing and amount of all cash inflows and outflows; mathematically it is the rate that makes the discounted sum of future cash flows equal the initial cost. Investors use it to compare different projects or deals the way they compare interest rates — a higher internal rate of return suggests a stronger potential payoff, but it does not by itself show risk, scale, or timing nuances.

stabilized cap rate financial

Stabilized cap rate is the annual income a property is expected to generate after normal operating expenses — assuming typical occupancy and renting levels — expressed as a percentage of its value. It matters to investors because it acts like a yield or interest rate for real estate, letting them compare expected returns and risk across properties or investments much like comparing bond yields or a price-to-earnings ratio for stocks.

LEED certification technical

LEED certification is a widely recognized rating that shows how sustainably a building is designed, constructed and operated, similar to a fuel-efficiency label for cars. Investors care because higher LEED levels often mean lower energy and water bills, better tenant demand, potential tax or regulatory benefits, and reduced long-term environmental and regulatory risk—factors that can improve a property’s operating cash flow and resale value.

Form 10-K regulatory

A Form 10-K is a comprehensive report that publicly traded companies are required to file annually with regulators. It provides a detailed overview of a company's financial health, operations, and risks, similar to a detailed health report. Investors use this information to assess the company's performance and make informed decisions about buying or selling its stock.

• 96.1% quarter-end occupancy compared to prior quarter of 96.2% and prior year of 97.4%
• 97.2% quarter-end same-store occupancy compared to prior quarter of 98.6% and prior year of 98.2%
• 29.8% increase in cash rents on new and renewed leases; 25.4% increase for the full year
• $87.4 million of acquisitions; full year acquisitions of $683.5 million
• $21.2 million of acquisitions under contract or letter of intent
• $144.2 million of dispositions; full year dispositions of $386.4 million
• $62.7 million of dispositions under contract
• Commenced the development of one property with a total expected investment of $55.5 million; during 2025 commenced development of two properties with a total expected investment of $109.6 million
• Completed the development and stabilization of one property with a total expected investment of $35.8 million; during 2025 completed the development and stabilization of three properties with a total expected investment of $117.0 million
• Issued 700,000 shares of common stock under ATM for gross proceeds of $43.6 million ($62.27 per share); during 2025 issued 4,206,371 shares of common stock under ATM for gross proceeds of $281.0 million ($66.81 per share)

BELLEVUE, Wash.--(BUSINESS WIRE)-- Terreno Realty Corporation (NYSE:TRNO), an acquirer, owner and operator of industrial real estate in six major coastal U.S. markets, announced today its operating, investment and capital markets activity for the fourth quarter of 2025.

Operating

As of December 31, 2025, Terreno Realty Corporation owned 309 buildings aggregating approximately 19.8 million square feet and 46 improved land parcels consisting of approximately 147.0 acres leased to 683 customers:

• The operating portfolio was 96.1% leased at December 31, 2025 as compared to 96.2% at September 30, 2025 and 97.4% at December 31, 2024;
• The same-store portfolio of approximately 14.1 million square feet was 97.2% leased at December 31, 2025 as compared to 98.6% at September 30, 2025 and 98.2% at December 31, 2024. Vacancy at December 31, 2025 included 205,000 square feet (approximately 100bps) of vacancy at Countyline Corporate Park Building 30 in Hialeah, Florida where the previous tenant rejected their lease in bankruptcy effective October 31, 2025. The vacated property is 84% pre-leased with leases expected to commence in the first half of 2026;
• The improved land portfolio of 46 parcels totaling approximately 147.0 acres was 95.4% leased at December 31, 2025 as compared to 93.6% at September 30, 2025 and 95.1% at December 31, 2024;
• Cash rents on new and renewed leases totaling approximately 0.7 million square feet and 2.9 acres of improved land commencing during the fourth quarter increased approximately 29.8% with a tenant retention ratio of 67.9% for the operating portfolio. Cash rents on new and renewed leases totaling approximately 2.7 million square feet and 24.4 acres of improved land commencing during the year ended December 31, 2025 increased approximately 25.4% with a tenant retention ratio of 70.2% for the operating portfolio and 74.1% for the improved land portfolio;
• Executed a lease for 226,000 square feet in Newark, California with an Original Design Manufacturer of cloud computing hardware. The lease commenced November 1, 2025 and will expire May 2036. To facilitate the new lease, Terreno Realty Corporation terminated effective October 31, 2025 the in-place lease that was to expire June 2030 and received a negotiated early termination payment from the prior tenant of approximately $13.5 million. In addition, Terreno Realty Corporation will record a net increase in revenue of approximately $4.4 million for the three months ended December 31, 2025 from the write-off of the below-market lease and straight-line rent related to the early termination of the prior lease;
• Executed a lease for 112,000 square feet in Countyline Corporate Park Building 30 in Hialeah, Florida with a designer and manufacturer of air-to-water technology that produces water from humidity in the air. The lease is expected to commence May 1, 2026 upon completion of tenant improvements and will expire October 2036. Further, Terreno Realty Corporation executed a lease for 61,000 square feet in Countyline Corporate Park Building 30 with an international freight forwarder and logistics provider. The lease is expected to commence March 1, 2026 upon completion of tenant improvements and will expire August 2031;
• Pre-leased 76,000 square feet in Countyline Corporate Park Phase IV Building 36 to a manufacturer and distributor of plantain products commencing upon building completion and tenant build-out expected to be in the first quarter of 2027 and expiring July 2037. A previously announced pre-lease of 108,000 square feet with an international logistics management company specializing in freight forwarding and consolidating services commencing with building completion and tenant build-out, expected to be in the first quarter of 2027, and expiring June 2037, has been expanded by 29,000 square feet bringing Building 36 to 100% pre-leased. Building 36 recently commenced construction and is expected to achieve LEED certification with a total expected investment of $56.2 million. The estimated stabilized cap rate is 5.8%;
• Executed an early lease renewal for 107,000 square feet in Washington, D.C. with the United States Secret Service. The lease will commence February 13, 2026 and expire February 2029;
• Executed an early lease renewal for 84,000 square feet in Woodinville, Washington with a premium-grade salt provider. The lease will commence November 1, 2026 and expire December 2033;
• Executed a lease for 117,000 square feet in Doral, Florida with an international freight forwarder and provider of customs brokerage, warehousing and inland transportation. The lease commenced December 31, 2025 and will expire December 2036;
• Purchased in bankruptcy two long-term leases encumbering Terreno Realty Corporation properties which were terminated effective December 31, 2025 for $1.25 million. The properties are land parcels of 12.7 acres in Carlstadt, New Jersey and 10.2 acres in Hayward, California improved currently with transshipment facilities that will be available for release or redevelopment; and
• Executed a lease for 48,000 square feet in Long Island City, Queens, New York with a contractor and rigging provider. The lease commenced December 31, 2025 and will expire August 2036.

Investment

During the fourth quarter of 2025, Terreno Realty Corporation acquired four industrial properties consisting of three buildings containing approximately 319,000 square feet and two improved land parcels of approximately 0.7 acres for an aggregate purchase price of approximately $87.4 million. The fourth quarter investment activity was as follows:

• 250 South Maple Avenue: One industrial distribution building containing approximately 18,000 square feet and one 0.2-acre improved land parcel on 1.0 acres located in South San Francisco, California, between San Francisco International Airport and the City of San Francisco. The property provides seven grade-level loading positions and parking for 19 cars. The building was acquired 73% leased to four tenants and the improved land parcel 100% leased to one tenant, all of which expire by June 2028, for a purchase price of approximately $5.6 million and an estimated stabilized cap rate of 6.3%;
• 43-27 33rd Street: One 0.5-acre improved land parcel located in Long Island City, Queens, New York, immediately adjacent to Terreno Realty Corporation’s property at 43-27 33rd Street, adjacent to New York State Route 25 (Queens Boulevard) and approximately one mile from the Queensboro (59th Street) bridge. The property was acquired 35% leased to one tenant for a purchase price of approximately $4.7 million and an estimated stabilized cap rate of 6.4%;
• 2300 Craftsman Circle: One rear-load industrial distribution building containing approximately 180,000 square feet on 14.1 acres located in Hyattsville, Maryland, adjacent to the intersection of the Baltimore-Washington Parkway and U.S. Route 50 approximately 1 mile outside Washington, D.C. The property provides 45 dock-high and one grade-level loading positions and parking for 156 cars and was acquired for a purchase price of approximately $50.0 million. The building was acquired shell complete only and was placed into the redevelopment pool upon acquisition with a total expected investment of $57.6 million and an estimated stabilized cap rate of 5.2%. Terreno Realty Corporation will permit and construct interior finishes expected to be completed in early 2027; and
• 510 Andover Park West: One industrial distribution building containing approximately 121,000 square feet on 7.1 acres located in Tukwila, Washington, in the northern Kent Valley, less than one mile from the intersection of I-5 and I-405. The property provides 19 dock-high, two ramped and three grade-level loading positions and parking for 122 cars. The building was acquired 100% leased to one tenant expiring February 2027. After tenant expiration Terreno Realty Corporation expects to renovate the property to allow leasing for one to four tenants. The purchase price was approximately $27.1 million and the estimated stabilized cap rate prior to such renovation and releasing is 3.9%.

For the full year 2025, Terreno Realty Corporation acquired 24 industrial buildings containing approximately 2.0 million square feet and two improved land parcels of approximately 0.7 acres for an aggregate purchase price of approximately $683.5 million.

During the fourth quarter of 2025, Terreno Realty Corporation sold one property consisting of a 603,000 square foot industrial distribution building in South Brunswick, New Jersey for a sale price of approximately $144.2 million. The original property consisting of 413,000 square feet was purchased by Terreno Realty Corporation in September 2010 for approximately $22.5 million. In 2013, Terreno Realty Corporation acquired the adjacent land and expanded the building by 190,000 square feet for an additional investment of $13.6 million. The unleveraged internal rate of return generated by the investment was 13.4%.

For the full year 2025, Terreno Realty Corporation sold eight properties consisting of 15 buildings containing approximately 1.6 million square feet for an aggregate sale price of approximately $386.4 million generating an unleveraged internal rate of return of approximately 12.2%.

During the fourth quarter of 2025, Terreno Realty Corporation commenced development of Countyline Corporate Park Phase IV Building 35 in Hialeah, Florida. Upon completion, Countyline Building 35 will consist of one approximately 220,000 square foot industrial distribution building, with a total expected investment of $55.5 million and an estimated stabilized cap rate of 6.0%. The building is expected to achieve LEED certification.

In 2025, Terreno Realty Corporation commenced development of two properties that, upon completion, will consist of two industrial distribution buildings aggregating approximately 434,000 square feet, with a total expected investment of approximately $109.6 million.

During the fourth quarter of 2025, Terreno Realty Corporation completed the redevelopment and stabilization of 49-10 27th Street in Long Island City, Queens, New York. The property consists of one industrial distribution building containing approximately 48,000 square feet on 2.2 acres, is adjacent to the entrance to the Queens-Midtown Tunnel, and provides ten dock-high and 14 grade-level loading positions with a total investment of $35.8 million. The redeveloped property is 100% leased to a contractor and rigging provider, the lease commenced December 2025 and expires August 2036. The estimated stabilized cap rate is 5.7%.

In 2025, Terreno Realty Corporation completed the development or redevelopment and stabilization of three properties consisting of three industrial distribution buildings aggregating approximately 298,000 square feet, with a total expected investment of $117.0 million.

During the fourth quarter, Terreno Realty Corporation moved its Paterson Plank III redevelopment property, which was vacant, to the operating portfolio. The total expected investment is $35.2 million.

As of December 31, 2025, Terreno Realty Corporation had six properties under development or redevelopment that, upon completion, will consist of nine buildings aggregating approximately 1.2 million square feet which are approximately 49% pre-leased, with a total expected investment of approximately $372.5 million.

Terreno Realty Corporation has approximately $11.4 million of acquisitions under contract and approximately $9.8 million of acquisitions under letters of intent. Additionally, Terreno Realty Corporation has approximately $8.8 million of dispositions under contract where due diligence has completed and $53.9 million of dispositions under contract where due diligence has commenced. There is no assurance that Terreno Realty Corporation will acquire or dispose of the properties under contract or letters of intent because the proposed acquisitions and dispositions are subject to the completion of satisfactory due diligence, closing conditions and, in the case of letters of intent, contracts.

Capital Markets

During the fourth quarter of 2025, Terreno Realty Corporation issued 700,000 shares of common stock with a weighted average offering price of $62.27 per share under the Company’s at-the-market equity offering program, receiving gross proceeds of $43.6 million. For the full year 2025, Terreno Realty Corporation issued 4,206,371 shares of common stock with a weighted average offering price of $66.81 per share under the Company’s at-the-market equity offering program, receiving gross proceeds of $281.0 million. Terreno Realty Corporation did not repurchase any shares of common stock pursuant to the Company’s share repurchase authorization.

As of December 31, 2025, the balance outstanding on Terreno Realty Corporation’s $600 million revolving credit facility was approximately $200 million. Terreno Realty Corporation has $50 million of debt maturities in July 2026 and $150 million of debt maturities in 2027.

Additional information is available on the Company’s website at www.terreno.com. Terreno Realty Corporation expects to file its annual report on Form 10-K for the year ended December 31, 2025 on or about February 4, 2026.

Terreno Realty Corporation acquires, owns and operates industrial real estate in six major coastal U.S. markets: New York City/Northern New Jersey; Los Angeles; Miami; San Francisco Bay Area; Seattle and Washington, D.C.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. We caution investors that forward-looking statements are based on management’s beliefs and on assumptions made by, and information currently available to, management. When used, the words “anticipate”, “believe”, “estimate”, “expect”, “intend”, “may”, “might”, “plan”, “project”, “result”, “should”, “will”, “seek”, “target”, “see”, “likely”, “position”, “opportunity”, “outlook”, “potential”, “future” and similar expressions which do not relate solely to historical matters are intended to identify forward-looking statements. These statements are subject to risks, uncertainties, and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control, including risks related to our ability to meet our estimated forecasts related to stabilized cap rates, and those risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2024 and our other public filings. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or projected. We expressly disclaim any responsibility to update our forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Accordingly, investors should use caution in relying on past forward-looking statements, which are based on results and trends at the time they are made, to anticipate future results or trends.

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Terreno Realty Corporation

Jaime Cannon, 415-655-4580

Source: Terreno Realty Corporation