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

• 96.2% quarter-end occupancy compared to prior quarter of 97.7% and prior year of 97.0%
• 98.6% quarter-end same-store occupancy compared to prior quarter of 98.5% and prior year of 97.1%
• 17.2% increase in cash rents on new and renewed leases; 23.8% increase year-to-date
• $472.6 million of acquisitions; $596.1 million year-to-date
• $59.8 million of acquisitions under contract or letter of intent
• $102.8 million of dispositions; $386.4 million year-to-date
• $8.8 million of dispositions under contract
• Commenced the development of one property with a total expected investment of $54.1 million
• Completed the development and stabilization of one property with a total expected investment of $39.9 million; year-to-date completed the development and stabilization of two properties with a total expected investment of $81.2 million
• No shares of common stock issued under the ATM during the third quarter

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 third quarter of 2025.

Operating

As of September 30, 2025, Terreno Realty Corporation owned 307 buildings aggregating approximately 20.2 million square feet and 44 improved land parcels consisting of approximately 146.4 acres leased to 676 customers:

• The operating portfolio was 96.2% leased at September 30, 2025 as compared to 97.7% at June 30, 2025 and 97.0% at September 30, 2024. Occupancy at September 30, 2025 included 381,000 square feet (approximately 190bps) of vacancy acquired as part of a multi-market portfolio;
• The same-store portfolio of approximately 14.1 million square feet was 98.6% leased at September 30, 2025 as compared to 98.5% at June 30, 2025 and 97.1% at September 30, 2024;
• The improved land portfolio of 44 parcels totaling approximately 146.4 acres was 93.6% leased at September 30, 2025 as compared to 95.1% at June 30, 2025 and 98.1% at September 30, 2024;
• Cash rents on new and renewed leases totaling approximately 0.6 million square feet and 8.0 acres of improved land commencing during the third quarter increased approximately 17.2% with a tenant retention ratio of 68.7% for the operating portfolio and 100.0% for the improved land portfolio. Cash rents on new and renewed leases totaling approximately 2.0 million square feet and 21.5 acres of improved land commencing during the nine months ended September 30, 2025 increased approximately 23.8% with a tenant retention ratio of 70.8% for the operating portfolio and 74.1% for the improved land portfolio;
• Executed an early lease renewal for 52,000 square feet in Washington, D.C. with a wine and spirits distributor. The lease will commence April 1, 2026 and expire March 2031;
• Executed an early lease renewal for 63,000 square feet in Seattle, Washington with a co-warehousing services provider. The lease will commence July 1, 2026 and expire June 2033;
• Executed a lease renewal for a 4.9-acre land parcel improved with a rail transshipment facility in Lynwood, California with a distributor of liquid food product. The lease will commence January 1, 2026 and expire December 2037;
• Leased 100% of Countyline Corporate Park Phase IV Building 32 in Hialeah, Florida. Stabilization is expected in the first quarter of 2026 upon completion of tenant improvements and the estimated stabilized cap rate is 6.0%;
• Leased 100% of Countyline Corporate Park Phase IV Building 34 in Hialeah, Florida. Stabilization is expected in the first quarter of 2026 upon completion of tenant improvements and the estimated stabilized cap rate is 5.7%. Stabilization of Buildings 32 and 34 in first quarter 2026 is expected to bring Countyline Corporate Park Phase IV to 80% complete; eight buildings totaling 1.8 million square feet have been constructed and fully leased; and
• Pre-leased 51% of recently-commenced Countyline Corporate Park Phase IV Building 36 in Hialeah, Florida. The lease will commence upon building completion and tenant build-out, expected to be in the first quarter of 2027, and expire June 2037.

Investment

During the third quarter of 2025, Terreno Realty Corporation acquired two industrial properties consisting of three buildings containing approximately 132,000 square feet and a multi-market portfolio consisting of 12 buildings containing approximately 1.2 million square feet for an aggregate purchase price of approximately $472.6 million. The third quarter investment activity was as follows:

• 3700 and 3730 Redondo Beach Avenue: Two industrial distribution buildings containing approximately 100,000 square feet on 5.1 acres located in Redondo Beach, California, west of I-405 and immediately adjacent to Terreno Realty Corporation’s 6.7-acre property at 2411 Santa Fe Avenue. The property provides 16 dock-high and three grade-level loading positions and parking for 88 cars. The property was acquired 100% leased to two tenants for a purchase price of approximately $35.5 million and an estimated stabilized cap rate of 5.8%;
• 258 Littlefield Avenue: One industrial distribution building containing approximately 32,000 square feet on 1.1 acres located in South San Francisco, California, between San Francisco International Airport and the City of San Francisco and immediately adjacent to Terreno Realty Corporation’s property at 240 Littlefield Avenue. The property provides four dock-high loading positions and parking for 24 cars. The property was acquired 100% leased on a short-term basis until October 2025 for a purchase price of approximately $10.2 million and an estimated stabilized cap rate of 5.8%; and
• Multi-market portfolio: 12 industrial distribution buildings containing approximately 1.2 million square feet in Woodinville, Washington, Doral, Florida and Kearny, New Jersey. The portfolio was acquired 69% leased to 31 tenants for a total purchase price of approximately $426.9 million. The estimated stabilized cap rate of the multi-market portfolio is 5.0%.

Year-to-date, Terreno Realty Corporation has acquired 21 industrial buildings containing approximately 1.7 million square feet for an aggregate purchase price of approximately $596.1 million.

During the third quarter of 2025, Terreno Realty Corporation sold three properties consisting of six buildings containing approximately 302,000 square feet and two improved land parcels of approximately 4.4 acres for an aggregate sale price of approximately $102.8 million:

• Six multi-tenant industrial buildings containing approximately 302,000 square feet on 14.6 acres in Doral, Florida for a sale price of approximately $82.3 million. The property was acquired by Terreno Realty Corporation in May 2013 for approximately $23.7 million. The unleveraged internal rate of return generated by the investment was 14.7%;
• One 2.1-acre improved land parcel in Tukwila, Washington for a sale price of approximately $9.5 million. The property was acquired by Terreno Realty Corporation in December 2020 for approximately $6.6 million. The unleveraged internal rate of return generated by the investment was 10.3%; and
• One 2.3-acre improved land parcel in Santa Fe Springs, California for a sale price of approximately $11.0 million. The property was acquired by Terreno Realty Corporation in November 2018 for approximately $6.4 million. The unleveraged internal rate of return generated by the investment was 13.2%.

Subsequent to September 30, 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%.

Year-to-date, Terreno Realty Corporation has sold eight properties consisting of 15 buildings containing approximately 1.6 million square feet for an aggregate sale price of approximately $386.4 million.

During the third quarter of 2025, Terreno Realty Corporation commenced development of Countyline Corporate Park Phase IV Building 36 in Hialeah, Florida. Upon completion, Countyline Building 36 will consist of one approximately 214,000 square foot industrial distribution building, with a total expected investment of $54.1 million and an estimated stabilized cap rate of 5.8%. The building is expected to achieve LEED certification and is 51% pre-leased.

During the third quarter of 2025, Terreno Realty Corporation completed the development and stabilization of Countyline Corporate Park Phase IV Building 33 in Hialeah, Florida. Building 33 is 100% leased to three tenants. Building 33 of Terreno Realty Corporation’s Countyline Corporate Park is a 158,000 square foot 36-foot clear height rear-load industrial distribution building on 9.0 acres with 53 dock-high and two grade-level loading positions and parking for 136 cars. The building is expected to achieve LEED certification, the total expected investment is $39.9 million and the estimated stabilized cap rate is 5.9%.

Year-to-date, Terreno Realty Corporation has completed the development or redevelopment and stabilization of two properties consisting of two industrial distribution buildings aggregating approximately 250,000 square feet, with a total expected investment of $81.2 million.

As of September 30, 2025, Terreno Realty Corporation had six properties under development or redevelopment that, upon completion, will consist of nine buildings aggregating approximately 0.9 million square feet which are approximately 54% pre-leased, and approximately 10.7 acres of land entitled for future development, with a total expected investment of approximately $391.2 million.

Terreno Realty Corporation has approximately $20.8 million of acquisitions under contract and approximately $39.0 million of acquisitions under letters of intent. Additionally, Terreno Realty Corporation has approximately $8.8 million of dispositions under contract. 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 third quarter of 2025, Terreno Realty Corporation did not issue any shares of common stock under the Company’s at-the-market equity offering program. Year-to-date through September 30, 2025, Terreno Realty Corporation has issued 3,506,371 shares of common stock with a weighted average offering price of $67.71 per share under the Company’s at-the-market equity offering program, receiving gross proceeds of $237.4 million. Terreno Realty Corporation did not repurchase any shares of common stock pursuant to the Company’s share repurchase authorization.

As of September 30, 2025, the balance outstanding on Terreno Realty Corporation’s $600 million revolving credit facility was approximately $280 million. Terreno Realty Corporation has no debt maturities in 2025 and $50 million of debt maturities in 2026.

Additional information is available on the Company’s website at www.terreno.com. Terreno Realty Corporation expects to file its quarterly report on Form 10-Q for the quarter ended September 30, 2025 on or about November 5, 2025.

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