Terreno Realty : Q1 2026 Update
TRNO
Published on 05/06/2026 at 07:24 pm EDT - Modified on 05/06/2026 at 07:37 pm EDT
Terreno Realty Corporation
May 6, 2026
Functional Assets in Infill Locations
Unique and Highly Selective Market Approach
Investment Strategy
Acquire, own and operate industrial real estate in six major coastal U.S. markets. Exclusively.
Mix of core and value-add investments
No greenfield development
No joint ventures
Emphasis on discount to replacement cost provides margin of safety
Superior market fundamentals
Strong demand generators (high population densities, high volume distribution points, logistics infrastructure)
Physical and regulatory constraints to new supply
Shrinking supply in certain submarkets
Broad product opportunity set (1)
Warehouse / distribution (80.5%)
Improved land (10.2%) (2)
Transshipment (6.3%)
Flex (including light industrial and R&D) (3.0%)
Functional and flexible assets
Cater to sub-market tenant demands, including last-mile distribution
Generally suitable for multiple tenants
Opportunity for higher and better use over time
Goal: Superior same store NOI and per share NAV growth
Reflects Terreno portfolio composition based on annualized base rent ("ABR") as of March 31, 2026. Excludes five properties under development or redevelopment as of
Includes 46 improved land parcels totaling approximately 147.0 acres that were 96.6% leased as of March 31, 2026. Such land is used for industrial outdoor storage and
may be redeveloped to higher and better use.
$1.52 (2)
$1.00
$0.83 (2)
$0.90
$0.62
$0.64
$0.67
$0.68
$0.66
$0.47
Net Income Per Share
FFO Per Share (1)
Financial Highlights
Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26
Cash Same Store NOI Growth (1)
Cash SSNOI Excluding Termination Fees (1)
26.2%
7.0% 7.3% 7.0%
8.9%
6.9% 7.6% 6.9%
4.0%
8.4%
Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26
This is a non-GAAP financial measure. Please see our Reporting Definitions for further explanation.
The three months ended December 31, 2025 includes lease termination income of $13.8 million relating to lease terminations which occurred during the quarter. In connection
4 with the lease terminations, we also recorded a net increase in revenue of approximately $5.8 million from the write-off of the below market leases, net of straight-line rent write-offs. The increase in lease termination revenue was partially offset by a $1.3 million termination fee we paid as part of a lease buy out at two properties. The combined net impact
of lease terminations during the three months ended December 31, 2025 was approximately $18.4 million (approximately $0.18 per share).
Recent Highlights
Capital Markets Activities
Investment Highlights
Q1 2026 Acquisitions
$101.8 million
Acquisitions Under Contract (1)(2)
$24.4 million
Acquisitions Under Access Agreements or LOI (1)(2)
$132.1 million
Q1 2026 Dispositions
$55.1 million
2026 YTD Dispositions (1)
$86.2 million
Dispositions Under Contract (1)(2)(3)
$8.8 million
During the first quarter of 2026, Terreno Realty Corporation issued 2,081,288 shares of common stock with a weighted average offering price of $64.85 per share under the Company's at-the-market equity offering program ("ATM"), receiving gross proceeds of $135.0 million.
As of May 5, 2026, there were no borrowings outstanding under Terreno Realty Corporation's $600 million revolving credit facility. The company has $50 million of debt maturities in July 2026 and $150 million of debt maturities in 2027.
On January 7, 2026, Terreno Realty Corporation obtained a new
$200 million five-year unsecured term loan. The loan will mature on January 15, 2031, and the interest rate generally will be SOFR plus 1.15% to 1.65%, depending on leverage. Additionally, the previous 10 basis point SOFR credit spread adjustment premium was eliminated on all credit facility borrowings, including term loans. The current interest rate is SOFR plus 1.15%.
Operating Highlights
Leases Commencing During the Three Months Ended March 31, 2026
Cash Rent Change:
22.4%
New and Renewed Leases:
Operating Portfolio
0.7 million square feet
Improved Land Portfolio
7.2 acres
Tenant Retention:
Operating Portfolio
72.6%
Improved Land Portfolio
45.8%
(1) As of May 5, 2026.
$8.8 million of dispositions under contract where due diligence has completed.
Current Portfolio Overview
Occupancy (1) (2)
Portfolio
Same Store
96.4%
97.6% 97.6%
97.6%
47%
Seattle 15.0%
53%
New York City /
Northern New Jersey 26.3%
San Francisco Bay Area
16.5%
Los Angeles 15.3%
Washington, D.C.
9.6%
Miami
17.3%
Key Metrics (4)
Six Major Coastal U.S. Markets (2) (3)
98.0%
97.7%
96.6%
96.2%
96.1%
96.3%
Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26
Square Feet (2)
Average Acquisition Size
19.9 million $22.9 million
Weighted Average Occupancy at Acquisition
Number of Buildings (2)
310 84.3%
Square Feet Under Development or Redevelopment
46 Improved Land Parcels
147.0 acres; 96.6% leased 0.9 million
Portfolio and Same Store occupancy based on approximately 19.9 million and 17.5 million square feet, respectively, as of March 31, 2026, and excludes 46 improved land parcels consisting of approximately 147.0 acres. Vacancy at both March 31, 2026 and December 31, 2025 included 205,000 square feet (approximately 100bps) of vacancy at Countyline Corporate Park Building 30 in Hialeah, Florida which is 100% pre-leased with leases expected to commence in the second quarter of 2026;
Excludes five properties under development or redevelopment as of March 31, 2026, that, upon completion, will consist of five buildings aggregating approximately 0.9 million square feet.
Based on annualized base rent ("ABR") by market including approximately 19.9 million square feet and 46 improved land parcels consisting of approximately 147.0 acres as of March 31, 2026. Subsequent to March 31, 2026, we sold one property in the Los Angeles market for approximately $31.1 million.
Portfolio as of March 31, 2026.
(1)
(2)
Terreno's Submarket Focus
Highly Focused Submarket Strategy
Percentage Decrease in Industrial Supply Since 2010 (2) In Select Submarkets
43% of portfolio located in shrinking supply submarkets (1)
Characterized by shrinking industrial supply. Offers opportunities to convert existing buildings into higher and better use over time. Urban infill.
39% of portfolio in no net new supply submarkets (1)
Characterized by older existing industrial product. Offers opportunities to redevelop existing buildings into new, modern industrial buildings. Infill.
18% of portfolio in new supply submarkets (1)
Characterized by industrial buildings that will remain in their current state for the foreseeable future with
previously undeveloped land available for industrial
development.
Submarket
SF Decrease (Millions of SF)
Total SF Decrease Since 2010
Annual SF Decrease
Washington, D.C.
2.0
20.3%
1.3%
South San Francisco
2.2
13.9%
0.9%
Seattle Eastside
1.2
8.0%
0.5%
LAX/West of 405
1.2
7.1%
0.4%
Brooklyn/Queens
10.6
6.0%
0.4%
7 (1) As of May 5, 2026. Reflects Terreno portfolio composition based on geography and purchase price, includes five properties under development or redevelopment and improved land parcels. Developments and redevelopments are included at total investment. Refer to Appendix for submarket classifications.
(2) Data provided by Costar. As a comparison, industrial supply has increased 21% nationally and 58% in the Inland Empire since 2010.
Submarket Focus: Infill
Terreno portfolio located within highest density population submarkets as compared to other industrial REITs
disclosed data. Source: S&P Global Market Intelligence, Terreno Realty Corporation.
Submarket Focus: Infill
Terreno portfolio located within highest density population submarkets as compared to other industrial REITs
TRNO: 8,116
TRNO: 12,018
TRNO: 37,241
TRNO: 16,061
TRNO: 13,801
TRNO: 14,744
9
TRNO represents average population density within 5-mile radius of owned properties as of May 5, 2026, weighted by square footage. Peers represent average population density within 5-mile radius of owned properties for combined portfolios of COLD, EGP, FR, ILPT, LXP, REXR, and STAG, weighted by square footage, and located in states with TRNO-owned properties.
PLD and LINE excluded due to lack of disclosed data.
Source: S&P Global Market Intelligence, Terreno Realty Corporation.
Submarket Focus: Ownership Density
Expanding presence in infill submarkets (1)
13% ownership of Seattle Eastside industrial product (2)
12% ownership of JFK industrial product
Redmond-Woodinville Road, Woodinville submarket, WA: JFK airport submarket, Queens, NY:
11% ownership of Washington, D.C. industrial product
3% ownership of South San Francisco industrial product
V Street NE, Northeast submarket, Washington, D.C.: South San Francisco submarket, CA:
10
Percentage ownership by square footage. Source: Costar and market broker reports.
Bellevue, Redmond, Kirkland and Woodinville south of SR 522 submarkets. Source: market broker reports
Shrinking Supply: Seattle Eastside
Approximately 8.0% Decrease in Supply and 8.8% Average Annual Increase in Rental Rate Since 2010
Source: CoStar
The Eastside's continued urbanization and light rail expansion has led to significant portions of industrial zones being rezoned or slated for redevelopment.
The Bellevue-520 Corridor and Redmond have seen older industrial properties replaced with mixed-use developments including residential, office and retail spaces.
11
Superior Long-Term Results
11.1%
Average Cash SSNOI Growth Since IPO(1)
12.4%
Unleveraged IRR on 48 Sold Properties Since IPO(1)
11.6%
Dividend CAGR Since 2011 Initiation
10.2%
TSR CAGR Since 2010 IPO
See Appendix for details.
12
Market Leading Corporate Structure
Management Alignment
Corporate Governance
Executive Team's long-term incentive compensation fully aligned with stockholders
Performance shares tied to three-year total stockholder return exceeding the MSCI U.S. REIT Index and FTSE Nareit Equity Industrial Index
No annual cash bonus plan for CEO and President with their long-term compensation paid solely in stock
No stock options, SARs, dividend equivalent units or UPREIT units
Significant senior management and board investment in common shares (approximately 1.9% of outstanding shares valued at $132.9 million)
13
Tied for #4 among all REITs for Corporate Governance by Green Street Advisors, May 2025
Ranked #2 Best Company Board and #3 Best ESG Program among mid-cap REITs in the 2025 Extel Awards
Majority independent directors with diverse expertise serving annual terms; no classification of Board without shareholder approval ("MUTA opt-out")
Adopted a majority voting standard in non-contested director elections
Opted out of three Maryland anti-takeover provisions (no opt in without stockholder approval)
Ownership limits designed to protect REIT status and not for the purpose of serving as an anti-takeover device
No stockholder rights plan unless approved in advance by stockholders or if adopted, subject to termination if not ratified by stockholders within 12 months
Key Takeaways
Focused strategy
Six major coastal US markets, exclusively
Flexible and functional assets in infill locations
Acquisition opportunities across our target markets at discounts to replacement cost
Ability to convert value-add investments into stabilized assets and realize value
Urban infill locations provide superior rent growth and higher and better use opportunities over time
Strong balance sheet including an investment grade credit rating
Demonstrated value creation with 48 properties sold since 2010 IPO for an aggregate sales price of approximately $1.2 billion earning a 12.4% unleveraged IRR
11.6% dividend CAGR since initiating dividend in 2011
10.2% compounded annual total shareholder return since 2010 IPO
Aligned management team and market leading corporate governance
14
Appendix
15
Appendix: Statements Of Operations
CONSOLIDATED STATEMENTS OF OPERATIONS
Fo
r the Thr
ee Month
s Ende
d Marc
h 31,
(in thousands except share and per share data)
2026
2025
REVENUES
Rental revenues and tenant expense reimbursements
$
124,440
$
110,420
Total revenues
124,440
110,420
COSTS AND EXPENSES
Property operating expenses
31,797
28,767
Depreciation and amortization
29,488
26,929
General and administrative
12,430
11,734
Acquisition costs and other
32
2
Total costs and expenses
73,747
67,432
OTHER INCOME (EXPENSE)
Interest and other income
514
1,223
Interest expense, including amortization
(8,987)
(7,927)
Gain on sales of real estate investments
27,214
11,842
Total other income
18,741
5,138
Net income
69,434
48,126
Allocation to participating securities
(323)
(208)
Net income available to common stockholders
$ 69,111
$ 47,918
EARNINGS PER COMMON SHARE - BASIC AND DILUTED:
Net income available to common stockholders - basic
$ 0.66
$ 0.48
Net income available to common stockholders - diluted
$ 0.66
$ 0.47
BASIC WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
104,911,360
100,767,821
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
105,223,672
101,046,910
16
Appendix: Net Income, FFO and Adjusted FFO
NET INCOME, FFO AND ADJUSTED FFO (1) For the Three Months Ended March 31,
(in thousands except share and per share data)
2026
2025
Total revenues
$ 124,440
$ 110,420
Property operating expenses
(31,797)
(28,767)
Depreciation and amortization
(29,488)
(26,929)
General and administrative
(12,430)
(11,734)
Acquisition costs and other
(32)
(2)
Interest and other income
514
1,223
Interest expense, including amortization
(8,987)
(7,927)
Gain on sales of real estate investments
27,214
11,842
Net income
69,434
48,126
Allocation to participating securities
(323)
(208)
Net income available to common stockholders
$ 69,111
$ 47,918
Net income available to common stockholders per common share - basic
$ 0.66
$ 0.48
Net income available to common stockholders per common share - diluted
$ 0.66
$ 0.47
Adjustments to arrive at Funds from Operations:
Gain on sales of real estate investments
(27,214)
(11,842)
Depreciation and amortization related to real estate
29,471
26,893
Allocation to participating securities
(333)
(274)
Funds from Operations (1)
$ 71,358
$ 62,903
Funds from operations per common share - basic
$ 0.68
$ 0.62
Funds from operations per common share - diluted
$ 0.68
$ 0.62
Adjustments to arrive at Adjusted Funds From Operations:
Acquisition costs and other
32
2
Stock-based compensation
4,501
4,252
Straight-line rents
(6,921)
(3,914)
Amortization of lease intangibles
(5,341)
(5,010)
Total capital expenditures
(20,462)
(10,649)
Capital expenditures related to stabilization (2)
8,164
2,118
Adjusted Funds from Operations (1)
$ 51,331
$ 49,702
Common stock dividends paid
$ 54,133
$ 48,871
Weighted average basic common shares
104,911,360
100,767,821
Weighted average diluted common shares
105,223,672
101,046,910
17 (1) See Reporting Definitions for further explanation. During the three months ended March 31, 2026, we gave contractual rent abatements of approximately $1.9 million to tenants with new leases at our Manhattan and Morton properties. The aggregate rent change for these leases was approximately 75.7%.
Includes costs incurred related to leasing acquired vacancy, renovation and expansion projects (stabilization capital).
Appendix: Supplemental Components of NAV
COMPONENTS OF NET OPERATING INCOME (1)
For the Three Months Ended
(in thousands except share and per share data) March 31, 2026 Q1 2026 Acquisitions
Purchase
Estimated
Leased %
Total revenues
$
124,440
Price
Stabilized
at
Less straight-line rents
(6,921)
Property Name Date
(in thousands)
Cap Rate
Acquisition
Less amortization of lease intangibles
(5,341)
Whitestone Logistics (5) February 18, 2026
$ 92,000
5.4%
0%
Less property operating expenses (31,797)
Cash net operating income $ 80,381
175 Canal Street West February 20, 2026 9,800 5.3% 100%
Total/Weighted Average $ 101,800 5.4% 10%
CONTRACTUAL RENT ABATEMENTS
$
5,836
LEASE TERMINATION INCOME, NET
$
443
CASH NOI FROM DISPOSED PROPERTIES
$
1,145
CASH NOI FROM HFS PROPERTIES (3)
$
555
CASH NOI FROM REDEVELOPMENTS
$
68
SUMMARY MARKET INFORMATION (Operating Portfolio) (2)
Market
Rentable
Square Feet
Occupancy
% as of March 31,
2026
Annualized
Base Rent (in
thousands)
Base Rent
Per Occupied Square Foot
New York City/Northern New Jersey
3,584,297
91.2%
$ 81,153
$ 24.83
Los Angeles
2,626,216
100.0%
46,336
17.64
Miami
4,824,001
93.2%
61,491
13.67
San Francisco Bay Area
3,208,407
99.3%
57,543
18.06
Seattle
3,557,125
98.6%
50,184
14.31
Washington, D.C.
2,124,857
98.6%
33,809
16.13
Total/Weighted Average
19,924,903
96.3%
$ 330,516
$ 17.23
BALANCE SHEET ITEMS As of March 31,
(in thousands except share and per share data) 2026 Other assets and liabilities
Cash and cash equivalents $ 87,874 Restricted cash 686
Construction in progress (2) 269,515
Properties held for sale, net (3) 19,030
Other assets, net 114,451
Less straight-line rents (76,414)
Security deposits (48,522)
Dividends payable (55,292)
Accounts payable and other liabilities (96,377) Total other assets and liabilities $ 214,951
SUMMARY MARKET INFORMATION (Improved Land) (2)
Market
Number
of
Parcels
Acreage
Occupancy % as
of March 31,
2026
Annualized
Base Rent (in
thousands)
New York City/Northern New Jersey
14
62.8
99.2%
$ 15,574
Los Angeles
13
28.8
96.1%
9,873
Miami
3
9.9
100.0%
2,294
San Francisco Bay Area
5
14.4
100.0%
3,137
Seattle
9
23.8
85.7%
5,289
DEBT
Credit facility $ -
Term loans (4) (400,000)
Senior unsecured notes (4) (475,000)
Mortgage loan payable (4)
(72,879)
Washington, D.C.
2
7.3
100.0%
1,463
Total debt
$ (947,879)
Total/Weighted Average
46
147.0
96.6%
$ 37,630
Total shares outstanding
106,307,209
See Reporting Definitions for further explanation.
The Company had five properties under development or redevelopment as of March 31, 2026, that, upon completion, will consist of five buildings aggregating approximately 0.9 million square feet.
As of March 31, 2026, the Company had two properties held for sale. These properties consisted of one building located in the Los Angeles market (net book value of approximately $16.7 million and net liabilities of approximately $0.3 million), which sold on April 7, 2026 for a sales price of approximately $31.1 million, and one building in the New York City/Northern New Jersey market (net book value of approximately $2.3 million and net liabilities of $34,000).
18 (4) Excludes deferred financing costs, loan fees and fair market value adjustment.
This property was acquired shell complete only and the Company will permit and construct interior finishes. Upon acquisition, this property was placed into redevelopment with a
total expected investment of approximately $103.4 million.
Appendix: Same Store Results
For the Three Months
Ended March 31,
SAME STORE GROWTH (1)(2)(3) (in thousands) 2026 2025 $ Change % Change
Net income
$ 69,434
$ 48,126
$ 21,308
44.3%
Depreciation and amortization
29,488
26,929
2,559
9.5%
General and administrative
12,430
11,734
696
5.9%
Acquisition costs and other
32
2
30
1500.0%
Total other income and expenses
(18,741)
(5,138)
(13,603)
264.8%
Net operating income
92,643
81,653
10,990
13.5%
Less non-same store NOI
(11,603)
(6,203)
(5,400)
87.1%
Same store NOI
$ 81,040
$ 75,450
$ 5,590
7.4%
Less straight-line rents and amortization of lease intangibles
(8,359)
(8,723)
364
(4.2)%
Cash-basis same store NOI
$ 72,681
$ 66,727
$ 5,954
8.9%
Less termination fee income
(443)
(116)
(327)
281.9%
Cash-basis same store NOI excluding termination fees
$ 72,238
$ 66,611
$ 5,627
8.4%
Average cash-basis same store growth since IPO: 11.1%
Same store NOI is computed as rental revenues, including tenant expense reimbursements, less property operating expenses on a same store basis. The same store pool includes all properties that were owned as of March 31, 2026 and since January 1, 2025 and excludes properties that were held for sale, disposed of prior to or were under development or redevelopment as of March 31, 2026. See Reporting Definitions for further explanation.
During the three months ended March 31, 2026, we gave contractual rent abatements of approximately $1.9 million (approximately 290 basis points) to tenants with new leases at our Manhattan and Morton properties. The aggregate rent change for these leases was approximately 75.7%.
Approximately $2.2 million (approximately 330bps) of the increase in cash-basis same store NOI for the quarter ended March 31, 2026 was related to properties that were
Historical same store results include cash-basis same store NOI growth %'s as reported in the Company's Form 10-Q and 10-K's. Previously reported cash-basis same store
NOI growth has not been adjusted for properties that were subsequently disposed of or held for sale.
Appendix: Lease Expirations
BUILDINGS
Rentable Square
% of Total Rentable
Annualized Base Rent
% of Total Annualized
Year
Feet
Square Feet
(in thousands) (2)
Base Rent (3)
Remainder of 2026 (1)
2,862,730
14.4%
$ 46,304
11.0%
2027
2,826,860
14.2%
48,768
11.6%
2028
2,680,733
13.5%
55,146
13.1%
2029
2,935,117
14.7%
59,922
14.3%
2030
2,049,453
10.3%
37,161
8.9%
Thereafter
5,825,804
29.2%
129,289
30.9%
Total
19,180,690
96.3%
$ 376,590
89.8%
IMPROVED LAND PARCELS
Improved Land
% of Total Improved
Annualized Base Rent
% of Total Annualized
Year
Acreage
Land Acreage
(in thousands) (2)
Base Rent (3)
Remainder of 2026 (4)
16.0
10.9%
$ 4,583
1.1%
2027
11.0
7.5%
3,663
0.9%
2028
27.6
18.8%
7,883
1.9%
2029
14.1
9.6%
3,394
0.8%
2030
30.7
20.9%
8,595
2.0%
Thereafter
42.6
28.9%
14,793
3.5%
Total
142.0
96.6%
$ 42,911
10.2%
TOTAL BUILDINGS AND IMPROVED LAND PARCELS
Total Annualized Base
% of Total Annualized
Year Rent (in thousands) (3) Base Rent (3)
Remainder of 2026 (5)
$
50,887
12.1%
2027
52,431
12.5%
2028
63,029
15.0%
2029
63,316
15.1%
2030
45,756
10.9%
Thereafter
144,082 34.4%
Total
$ 419,501 100.0%
Includes leases that expire on or after March 31, 2026 and month-to-month leases totaling approximately 52,458 square feet. Approximately 1.1 million square feet of the space expiring during 2026 has either been renewed or pre-leased as of March 31, 2026.
Annualized base rent is calculated as contractual monthly base rent per the leases at expiration, excluding any partial or full rent abatements, as of March 31, 2026, multiplied by 12.
Total annualized base rent is calculated as contractual monthly base rent per the leases at expiration, for all buildings and/or improved land parcels, excluding any partial or full
Includes leases that expire on or after March 31, 2026.
Includes leases that expire on or after March 31, 2026 and month-to-month leases disclosed in footnotes 1 and 4 of the table.
Disclaimer
Terreno Realty Corporation published this content on May 06, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 06, 2026 at 23:03 UTC.