Key Takeaways TRNO acquired a $10M Los Angeles flex property with a 6.4% cap rate and full tenant occupancy. The deal supports TRNO's strategy of shedding non-core assets for value-accretive investments. TRNO has $49M in deals under contract and $75.8M under letters of intent as of May 6, 2025.Terreno Realty (TRNO) recently announced the acquisition of an industrial property in Los Angeles, CA, in June 2025 for around $10 million. The transaction marks an estimated stabilized cap rate of 6.4%.Located at 1 ...

Terreno Realty Corporation (TRNO) announced the disposition of an industrial property located in Commerce, CA. The sale was carried out on May 22, 2025, for approximately $97 million. This move highlights the company’s strategy of disposing of non-core assets and building a more robust portfolio, which will aid future growth.The property consists of five multi-tenant industrial buildings spanning around 545,000 square feet on 24 acres of land. It is 99% leased to 12 tenants.Terreno Realty had purchased the ...

Terreno Realty Corporation (TRNO) announced the disposition of an industrial property in Bellevue, WA. The sale was carried out for around $17.5 million. The moves highlight the REIT’s strategy of doing away with non-core assets, boosting flexibility and building a more robust portfolio, which will aid future growth.Terreno Realty purchased the property in November 2020 for $11.7 million. The investment yielded an unleveraged internal rate of return of 11.1% to the company. The property comprises a single i ...

Core Insights - Terreno Realty (TRNO) has executed a new lease for a 3.0-acre improved land parcel in Rancho Dominguez, CA, starting May 20, 2025, and expiring in May 2028, with an environmental waste management services provider as the lessee [1] - The company also renewed a lease for 53,000 square feet with the United States Postal Service in Washington, D.C., and secured a new lease for 70,000 square feet in Woodinville, WA, with a designer and manufacturer of camera movement systems [2] - As of March 31, 2025, TRNO's operating portfolio was 96.6% leased to 663 tenants, with a same-store portfolio of 15.6 million square feet at 97.4% leased, and an improved land portfolio of 47 parcels at 95.1% leased [3] - The company achieved a 34.2% increase in cash rents on new and renewed leases during Q1 2025, with a tenant retention ratio of 71.7% for its operating portfolio [4] - TRNO is positioned for long-term growth with a solid operating platform and healthy balance sheet, although its shares have decreased by 2.3% in the past month compared to the industry's growth of 3.2% [5] Industry Context - Other REITs in the sector, such as VICI Properties and W.P. Carey, are currently rated higher, with VICI's 2025 FFO per share estimated at $2.34, reflecting a year-over-year growth of 3.5%, and WPC's estimated at $4.88, indicating a 3.8% increase from the previous year [6][8]

Core Viewpoint - Terreno Realty (TRNO) is actively renewing and securing leases, indicating strong demand for its properties and a positive outlook for growth in the industrial real estate sector [1][2][3]. Group 1: Lease Renewals and New Leases - TRNO has executed a lease renewal for 53,000 square feet with the United States Postal Service in Washington, D.C., effective from June 1, 2025, to June 2030 [1]. - A new lease of 70,000 square feet has been signed in Woodinville, WA, starting June 30, 2025, and expiring in November 2030, with a tenant specializing in camera movement systems [2]. Group 2: Portfolio Performance - As of March 31, 2025, TRNO's operating portfolio was 96.6% leased to 663 tenants, with a same-store portfolio of 15.6 million square feet at 97.4% leased [4]. - The leased rate for the improved land portfolio of 47 parcels covering 150.6 acres was 95.1% as of the same date [4]. Group 3: Financial Performance - TRNO achieved a 34.2% increase in cash rents on new and renewed leases during Q1 2025, reflecting the company's ability to secure higher rents [5]. - The tenant retention ratio for the operating portfolio was 71.7% [5]. Group 4: Market Position and Growth Potential - TRNO is well-positioned for long-term growth opportunities due to its solid operating platform, healthy balance sheet, and strategic expansion moves [6]. - In the past month, TRNO shares have gained 2%, compared to the industry's growth of 2.9% [6].

Property Portfolio and Occupancy - As of March 31, 2025, Terreno Realty Corporation owned a total of 298 buildings aggregating approximately 19.3 million square feet, with an occupancy rate of approximately 96.6%[93] - The company operates in six major coastal U.S. markets, with the highest percentage of rentable square feet located in Miami at 23.1%[97] - As of March 31, 2025, the occupancy rate for improved land parcels was approximately 95.1%[97] - As of March 31, 2025, the same store pool occupancy was approximately 97.4%, compared to 96.3% in the prior year[123] - Approximately 68.0% of the company's total rentable square feet will have lease expirations within five years, allowing for potential rent increases[118] Financial Performance - Total revenues increased by approximately $25.4 million, or 29.9%, for the three months ended March 31, 2025, compared to the same period in 2024, driven by new and renewed leases and property acquisitions[127] - Total rental revenues rose to $86.3 million, a 28.7% increase from $67.0 million in the prior year, with same store rental revenues growing by 2.6%[126] - Net operating income increased by 27.3% to $81.7 million, up from $64.1 million in the same period last year[126] - The company reported a net income of $36.1 million for the three months ended March 31, 2025, compared to $48.1 million for the same period in 2024[146] - Adjusted EBITDA for the three months ended March 31, 2025, was approximately $59.9 million, down from $75.4 million in the same period of 2024[146] Rental Income and Lease Activity - The annualized base rent as of March 31, 2025, was $327.8 million, with warehouse/distribution properties contributing 79.1% of this total[95] - The annualized base rent per occupied square foot was $15.69 across the portfolio as of March 31, 2025[97] - The largest customer accounted for approximately 5.5% of the total annualized base rent, with 663 customers in total[93] - Cash rent changes on new and renewed leases for approximately 0.6 million square feet were about 34.2% higher compared to previous rental rates[105] - The company expects rental rates for new or renewed leases in 2025 to be above current rates[105] Development and Capital Expenditures - The company has five properties under development or redevelopment, expected to consist of eight buildings totaling approximately 0.8 million square feet, with a total expected investment of approximately $392.8 million[97] - Development and redevelopment costs for the same period were $21,599,000, down 37.8% from $34,756,000 in 2024[98] - The estimated stabilized cap rate for properties under development is 5.7%, with an average pre-leased percentage of 48.3%[108] - The company completed the redevelopment of one property during the three months ended March 31, 2025, and capitalized interest associated with development activities was approximately $1.3 million[109] Debt and Capital Structure - The company maintains a conservative capital structure with a goal to keep consolidated indebtedness below 35% of total enterprise value and a net debt-to-adjusted EBITDA ratio below 5.0x[135] - As of March 31, 2025, the company had $600 million in a revolving credit facility and $200 million in term loans, with no borrowings outstanding on the revolving credit facility[140] - Total debt, net, increased from $741.9 million as of March 31, 2024, to $771.8 million as of March 31, 2025[146] - The weighted average interest rate on total debt was 3.8% as of March 31, 2025, compared to 5.6% for the mortgage loan[145] Cash Flow and Dividends - Net cash provided by operating activities for the three months ended March 31, 2025, was approximately $61.4 million, up from $47.0 million for the same period in 2024, primarily due to increased cash flows from newly acquired properties and higher rents[149] - A cash dividend of $0.49 per share was declared on May 6, 2025, payable on July 11, 2025[115] - The company declared a cash dividend of $0.49 per share on February 4, 2025, payable on April 4, 2025[147] Expenses and Cost Management - Property operating expenses rose by approximately $7.9 million, or 37.7%, primarily due to property acquisitions and increased insurance premiums and real estate taxes[128] - General and administrative expenses increased by approximately $1.2 million, or 11.6%, primarily due to higher compensation expenses and an increase in the number of employees[130] - Interest expense increased by approximately $2.7 million, or 51.3%, primarily due to a decrease in capitalized interest for development properties[132] Sales and Acquisitions - The company sold two properties in the San Francisco Bay Area for a total sales price of $24.88 million, resulting in a total gain of $11.84 million[110] - The company has two outstanding contracts to acquire industrial properties for a total purchase price of approximately $49.0 million, subject to due diligence[116] - The company plans to acquire two industrial properties for a total price of $49.0 million, subject to satisfactory due diligence[153] Other Financial Metrics - FFO attributable to common stockholders increased by $11.886 million to $62.903 million, representing a 23.3% growth compared to $51.017 million in the prior year[157] - Same store NOI increased by $2.054 million to $64.613 million, a 3.3% rise compared to $62.559 million in the same period last year[161] - Cash-basis same store NOI grew by approximately $4.0 million to $61.902 million, reflecting a 7.0% increase from $57.870 million in 2024[161] - The company experienced a bad debt expense of approximately $1.7 million for the three months ended March 31, 2025, which included a straight-line rent reserve of $0.4 million[158]

Group 1 - Terreno Realty (NYSE: TRNO) is shifting its focus from nominal growth to deleveraging while adhering to its long-term investment philosophy [1] - The company is experiencing mixed signals regarding its shares, indicating potential volatility in the stock performance [1] Group 2 - The investing group "Value In Corporate Events" provides members with opportunities related to IPOs, mergers & acquisitions, earnings reports, and corporate capital allocation changes [2] - The group covers approximately 10 major events each month, aiming to identify the best investment opportunities [2]

Core Viewpoint - Terreno Realty (TRNO) is pursuing an acquisition-driven growth strategy, recently acquiring an industrial property in Redmond, WA for $9.3 million, with an estimated stabilized cap rate of 5.5% post-renovation [1] Group 1: Property Acquisition Details - The acquired property is located at 9660 153rd Avenue NE, comprising one industrial distribution building of approximately 33,000 square feet on 1.5 acres, fully leased on a short-term basis [2] - After the existing tenant vacates, the property will undergo renovation, reducing the space to roughly 26,000 square feet, and is expected to attract new tenants due to its advantageous location [2] Group 2: Portfolio Restructuring - TRNO is actively restructuring its portfolio by selling non-core assets and acquiring value-accretive investments, which is expected to support long-term revenue growth [3] - In Q1 2025, TRNO sold two properties with a total of around 88,000 square feet for approximately $24.9 million, and as of March 31, 2025, had acquisitions worth about $55.9 million under contract and nearly $16 million under letters of intent [3] Group 3: Development Projects - As of March 31, 2025, Terreno Realty has five properties under development or redevelopment, which will consist of eight buildings totaling around 0.8 million square feet, with 48% pre-leased [4] - The company also holds around 22.4 acres of land for future developments, estimated to require an investment of approximately $392.8 million [4] Group 4: Market Position and Performance - Terreno Realty is expanding its portfolio in six major coastal U.S. markets, including New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle, and Washington, D.C., which show strong demographic trends and demand for industrial real estate [5] - Despite these expansion efforts, TRNO's shares have declined by 8.8% year-to-date, compared to a 4.7% decline in the industry, reflecting concerns over macroeconomic uncertainty and tariff issues [5]

Company Overview - Terreno Realty (TRNO) shares increased by 9.1% to $55.83 in the last trading session, following a significant volume of trading, contrasting with a 24.3% loss over the past four weeks [1] - The optimism surrounding the stock is linked to President Donald Trump's announcement of a 90-day pause on reciprocal tariffs for most countries [1] Financial Performance Expectations - Terreno is projected to report quarterly funds from operations (FFO) of $0.64 per share, reflecting a year-over-year increase of 12.3% [2] - Expected revenues for the upcoming report are $109.03 million, which is a 28.2% increase compared to the same quarter last year [2] Market Trends and Stock Movement - The consensus estimate for FFO per share for Terreno has remained stable over the last 30 days, indicating that stock price movements may not sustain without changes in FFO estimate revisions [3] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [3] Industry Comparison - Terreno is part of the Zacks REIT and Equity Trust - Other industry, where Plymouth Industrial (PLYM) also operates [3] - Plymouth Industrial's FFO per share estimate has decreased by 1.1% to $0.45, showing no change compared to the previous year, and it currently has a Zacks Rank of 4 (Sell) [4]

Core Insights - Terreno Realty Corporation (TRNO) reported a strong first-quarter 2025 performance, highlighting increased rents and improved occupancy rates, driven by the rising demand for industrial real estate in the e-commerce sector [1][12] Operating Activity - In Q1 2025, TRNO experienced a 34.2% increase in cash rents for new and renewed leases in its operating portfolio, while the improved land portfolio saw no change [2] - The total leases that commenced in Q1 amounted to approximately 0.6 million square feet and 4.3 acres of improved land, with a tenant retention ratio of 71.7% [2] Occupancy Rates - As of March 31, 2025, the occupancy rate for the operating portfolio was 96.6%, reflecting a year-over-year increase of 40 basis points, although it decreased by 80 basis points sequentially [3] - The same-store portfolio, covering around 15.6 million square feet, had a quarter-end occupancy of 97.4%, up 110 basis points year-over-year but down 90 basis points sequentially [3] - The improved land portfolio, consisting of 47 parcels and 150.6 acres, maintained an occupancy rate of 95.1% [4] Investment Activity - TRNO is restructuring its portfolio by selling non-core assets and acquiring value-accretive investments, with two properties sold in Q1 2025 for a total of approximately $24.9 million [5] - As of March 31, 2025, TRNO had acquisitions worth around $55.9 million under contract and nearly $16 million under letters of intent [6] Development and Redevelopment Activity - TRNO had five properties under development or redevelopment as of March 31, 2025, which will include eight buildings totaling around 0.8 million square feet, currently 48% leased [7] - The company also has approximately 22.4 acres of land earmarked for future developments, with an estimated investment value of around $392.8 million [7] Capital Market Activity - In Q1 2025, TRNO issued 3,506,371 shares of common stock at a weighted average offer price of $67.71 per share, generating gross proceeds of $237.4 million [8] - The company had no borrowings outstanding under its $600 million revolving credit facility as of March 31, 2025, with no debt maturities in 2025 [9] Industry Context - The industrial real estate sector is experiencing significant growth due to the rising e-commerce market, which is transforming consumer shopping and delivery methods [12] - Companies are focusing on enhancing supply-chain efficiencies, increasing the demand for logistics infrastructure and distribution networks, positioning TRNO to capitalize on these trends [12]