Terreno Realty (TRNO) is witnessing healthy demand for its properties. Recently, the company executed a lease for 69,000 square feet in San Leandro, CA. This lease with an ocean freight provider will commence on Sep 30, 2024 and is slated for expiry in January 2030. This industrial REIT has been experiencing healthy demand for its properties and recently announced the execution of an early lease renewal in Torrance, CA, with a global supplier of automotive parts, components and technologies. The 99,000-squa ...

Terreno Realty has quietly done a terrific job growing its dividend. Terreno Realty (TRNO -0.01%) flies under the radar of most investors. The industrial-focused real estate investment trust (REIT) is tiny compared to industry behemoth Prologis (PLD -1.54%). It owns 292 buildings in six U.S. markets compared to over 5,500 properties worldwide for the sector leader. Because of its smaller size, many investors might have missed that the industrial REIT just increased its dividend again. That raise pushed its ...

Terreno Realty Corporation (TRNO) recently provided an update on its operating, investment and capital market activity for the second quarter of 2024. The preliminary results highlight solid growth in cash rents, though occupancy levels declined because of acquired vacancy. Nevertheless, accretive acquisitions and developments are likely to support its growth in the upcoming period. However, TRNO was able to lock in higher rents on new and renewed leases during the quarter. The cash rents on new and renewed ...

Terreno Realty Corporation (TRNO) recently announced the completion of the development and stabilization of Countyline Corporate Park Phase IV Building 40 in Hialeah, FL, effective Jun 30, 2024. This building has been 100% leased to four tenants. Building 40, with a 36-foot clear height, is located in Terreno Realty's Countyline Corporate Park. This 186,000-square-foot industrial distribution building is placed on 9.1 acres of land. It includes 60 dock-high and two grade-level loading positions, as well as ...

Terreno Realty Corporation (TRNO) recently announced the execution of an early renewal and expansion lease in Fremont, CA, with an Advanced Air Mobility provider. This reflects the healthy demand for its properties. The 30,000-square-foot lease, which was originally set to expire in February 2025, has been extended until August 2029. Additionally, the 41,000-square-foot expansion lease will begin in June 2024 and expire in August 2029. The company has also executed a lease for 5.5 acres of improved land in ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR For the transition period from __________ to __________ Commission file number: 001-34603 _________________________ Terreno Realty Corporation (Exact Name of Registrant as Specified in Its Charter) _________________________ Washington, D.C. 20549 _________________________ Form 10-Q ☐ TRANSITION REPORT PUR ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________ Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number 001-34603 Terreno Realty Corporation (Exact Name of Registrant as Specified in Its ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents Terreno Realty Corporation's unaudited consolidated financial statements for Q3 and nine months ended September 30, 2023 [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of September 30, 2023, total assets increased to $3.74 billion, liabilities grew moderately to $1.00 billion, and stockholders' equity expanded to $2.74 billion, driven by real estate investments and capital raising Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2023 (unaudited) | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$3,739,465** | **$3,164,441** | | Net investments in real estate | $3,567,320 | $3,075,143 | | Cash and cash equivalents | $96,196 | $26,393 | | **Total Liabilities** | **$1,002,495** | **$934,590** | | Senior unsecured notes, net | $572,269 | $571,825 | | **Total Stockholders' Equity** | **$2,736,970** | **$2,229,851** | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For Q3 2023, total revenues increased 17.1% to $82.9 million and net income rose 35.1% to $30.3 million, while nine-month net income decreased 32.5% to $93.9 million due to lower real estate sale gains Statement of Operations Summary (in thousands, except EPS) | Metric | Q3 2023 | Q3 2022 | YoY Change | Nine Months 2023 | Nine Months 2022 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $82,920 | $70,801 | +17.1% | $237,106 | $200,205 | +18.4% | | Net Income | $30,315 | $22,439 | +35.1% | $93,900 | $139,134 | -32.5% | | Gain on sales of real estate | $0 | $0 | N/A | $12,257 | $76,048 | -83.9% | | Diluted EPS | $0.36 | $0.30 | +20.0% | $1.13 | $1.84 | -38.6% | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2023, operating cash flow increased to $140.6 million, investing activities used $479.6 million, and financing activities provided $411.2 million, resulting in a net cash increase of $72.1 million Cash Flow Summary for the Nine Months Ended Sep 30 (in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $140,626 | $109,019 | | Net cash used in investing activities | ($479,637) | ($313,803) | | Net cash provided by financing activities | $411,150 | $10,980 | | **Net increase (decrease) in cash** | **$72,139** | **($193,804)** | [Condensed Notes to Consolidated Financial Statements](index=8&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed context for financial statements, covering organization, accounting policies, real estate, debt, and equity activities - The company acquires, owns, and operates industrial real estate in six major coastal U.S. markets. As of September 30, 2023, its portfolio consisted of **257 buildings (15.8 million sq. ft.)**, **46 improved land parcels (165.8 acres)**, and **eight properties under development**[21](index=21&type=chunk) - During the nine months ended September 30, 2023, the company acquired **five industrial properties** for a total investment of approximately **$437.0 million**[48](index=48&type=chunk) - In the same nine-month period, **one property was sold for $25.5 million**, generating a gain of approximately **$12.3 million**[57](index=57&type=chunk) - As of September 30, 2023, the company had **$775.0 million of unsecured debt** and no secured debt. Total debt, net of issuance costs, was **$771.4 million**[58](index=58&type=chunk)[61](index=61&type=chunk) - In February 2023, a public offering of **5,750,000 shares of common stock** generated net proceeds of approximately **$355.9 million**. The company also actively used its at-the-market (ATM) equity programs[67](index=67&type=chunk) - Subsequent to the quarter's end, the company sold **one property for $18.0 million**, acquired **two properties for a combined $73.2 million**, and declared a quarterly dividend of **$0.45 per share**[81](index=81&type=chunk)[82](index=82&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses business overview, strategic activities, and financial performance, highlighting portfolio occupancy, cash rent growth, and revenue and NOI trends [Overview](index=21&type=section&id=Overview) Terreno operates a portfolio of industrial real estate in six major U.S. coastal markets, with high occupancy rates of 98.3% for buildings and 96.3% for improved land parcels as of September 30, 2023 Portfolio Summary by Market (as of Sep 30, 2023) | Market | % of Total Annualized Base Rent | Building Occupancy | Gross Book Value (in thousands) | | :--- | :--- | :--- | :--- | | Los Angeles | 18.0% | 98.7% | $704,688 | | Northern New Jersey/New York City | 24.3% | 99.1% | $787,136 | | San Francisco Bay Area | 19.4% | 97.1% | $763,929 | | Seattle | 16.0% | 96.4% | $606,522 | | Miami | 12.3% | 100.0% | $737,349 | | Washington, D.C. | 10.0% | 99.1% | $339,309 | - Cash rents on new and renewed leases commencing in the nine months ended September 30, 2023, were approximately **57.1% higher** than the previous rental rates for the same space[98](index=98&type=chunk) - Leases representing approximately **12.1% of the total annualized base rent** are scheduled to expire through December 31, 2024[98](index=98&type=chunk) [Recent Developments](index=27&type=section&id=Recent%20Developments) During Q3 2023, the company acquired one industrial property for $14.8 million, advanced its substantial development pipeline, and raised $94.4 million in net proceeds from ATM programs - Acquired **one industrial property in Santa Ana, CA for $14.8 million** during Q3 2023, with an estimated stabilized cap rate of **5.1%**[100](index=100&type=chunk) Development & Redevelopment Pipeline Summary | Metric | Value | | :--- | :--- | | Properties in Pipeline | 8 | | Total Expected Investment | $336.1 million | | Amount Spent to Date | $213.0 million | | Estimated Stabilized Cap Rate | 5.3% | | Total Post Development Sq. Ft. | 1,231,624 | | % Pre-leased | 68.1% | - In the first nine months of 2023, the company issued **2,542,279 shares** under its ATM programs for net proceeds of approximately **$154.4 million**[106](index=106&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) The company's financial results show strong growth in Q3 2023, with total revenues up 17.1% and same-store NOI up 8.6%, though nine-month net income declined due to lower real estate sale gains Q3 2023 vs. Q3 2022 Performance (in thousands) | Metric | Q3 2023 | Q3 2022 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $82,920 | $70,801 | $12,119 | 17.1% | | Net Operating Income (NOI) | $62,451 | $53,661 | $8,790 | 16.4% | | Same Store NOI | $51,413 | $47,350 | $4,063 | 8.6% | | Net Income | $30,315 | $22,439 | $7,876 | 35.1% | Nine Months 2023 vs. Nine Months 2022 Performance (in thousands) | Metric | Nine Months 2023 | Nine Months 2022 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $237,106 | $200,205 | $36,901 | 18.4% | | Net Operating Income (NOI) | $179,670 | $150,385 | $29,285 | 19.5% | | Same Store NOI | $150,279 | $136,270 | $14,009 | 10.3% | | Net Income | $93,900 | $139,134 | ($45,234) | (32.5)% | [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a conservative financing strategy with a long-term goal of limiting debt to less than 35% of total enterprise value, supported by strong liquidity and active equity offerings - The company's financing strategy includes maintaining a debt-to-adjusted EBITDA ratio below **6.0x** and a fixed charge coverage ratio above **2.0x**[135](index=135&type=chunk) Key Financial Ratios (as of Sep 30, 2023) | Ratio | Value | | :--- | :--- | | Total Debt-to-Total Market Capitalization | 13.7% | | Total Debt-to-Adjusted EBITDA | 3.3x | | Interest Coverage | 8.7x | | Fixed Charge Coverage | 6.7x | | Weighted Average Maturity of Total Debt | 4.6 years | - As of September 30, 2023, the company had **no borrowings outstanding** on its **$400.0 million revolving credit facility**[142](index=142&type=chunk) [Non-GAAP Financial Measures](index=40&type=section&id=Non-GAAP%20Financial%20Measures) This section provides reconciliations for key non-GAAP metrics, with Q3 2023 FFO attributable to common stockholders increasing 23.2% to $48.3 million and cash-basis same-store NOI growing 13.1% year-over-year FFO Performance (in thousands, except per share) | Metric | Q3 2023 | Q3 2022 | % Change | | :--- | :--- | :--- | :--- | | FFO attributable to common stockholders | $48,282 | $39,202 | +23.2% | | Diluted FFO per common share | $0.57 | $0.52 | +9.6% | NOI Performance (in thousands) | Metric | Q3 2023 | Q3 2022 | % Change | | :--- | :--- | :--- | :--- | | Same store NOI | $51,413 | $47,350 | +8.6% | | Cash-basis same store NOI | $48,811 | $43,144 | +13.1% | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations on its $200.0 million variable-rate debt, where a 25 basis point change in SOFR would impact annual interest expense by approximately $0.5 million - The company's primary market risk is interest rate risk on its variable-rate debt, which stood at **$200.0 million** as of September 30, 2023[169](index=169&type=chunk)[170](index=170&type=chunk) - A **25 basis point fluctuation** in the SOFR rate would impact annual interest expense by approximately **$0.5 million**[170](index=170&type=chunk) [Item 4. Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal control over financial reporting during the quarter - Management concluded that disclosure controls and procedures were **effective** as of the end of the reporting period[171](index=171&type=chunk) - No material changes were identified in the company's internal control over financial reporting during the third quarter of 2023[172](index=172&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not involved in any material litigation, nor is it aware of any material litigation being threatened against it - The company is **not involved in any material legal proceedings**[175](index=175&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2022 - No material changes to the risk factors disclosed in the **2022 Form 10-K** have occurred[176](index=176&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) During Q3 2023, the company repurchased 12,499 shares of common stock to satisfy employee tax withholding obligations on vested restricted stock, not as part of a publicly announced plan - In August 2023, **12,499 shares** were repurchased at an average price of **$58.85 per share** to satisfy employee tax withholding obligations on vested restricted stock[177](index=177&type=chunk) [Item 5. Other Information](index=44&type=section&id=Item%205.%20Other%20Information) During the third quarter of 2023, no directors or officers of the company adopted, terminated, or modified a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No director or officer trading plans (Rule 10b5-1 or other) were adopted, terminated, or modified during the quarter[180](index=180&type=chunk) [Item 6. Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including officer certifications and Inline XBRL financial data files - The exhibits filed with this report include certifications under Rule 13a-14(a)/15d-14(a) and Section 1350, as well as Inline XBRL documents[181](index=181&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________ Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 001-34603 _________________________ Terreno Realty Corporation (Exact Name of ...

Real Estate Portfolio - As of March 31, 2023, Terreno Realty Corporation owned a total of 257 buildings, aggregating approximately 15.9 million square feet, with an occupancy rate of approximately 98.1%[83] - The company operates in six major coastal U.S. markets, with the highest annualized base rent contributions from Northern New Jersey/New York City at 24.6%[87] - The consolidated same store pool occupancy was approximately 98.5% as of March 31, 2023, compared to 97.3% in the same period of 2022[106] - The same store pool consisted of 225 buildings totaling approximately 13.2 million square feet, representing about 83.1% of total square feet owned[143] Financial Performance - Total revenues increased by approximately $10.6 million to $74.651 million for the three months ended March 31, 2023, compared to $64.035 million in the same period of 2022, representing a 16.6% increase[110] - Net income for the three months ended March 31, 2023, was $23.3 million, an 18.7% increase compared to $19.7 million for the same period in 2022[140] - Adjusted EBITDA for the three months ended March 31, 2023, was $51.9 million, up from $42.6 million in the same period of 2022, reflecting a 21.8% increase[127] - Total net operating income increased by 19.3% to $56.270 million, compared to $47.159 million in the same period last year[109] Rental Income - The annualized base rent as of March 31, 2023, was $235.2 million, with warehouse/distribution properties contributing 75.9% of this total[85] - The annualized base rent per occupied square foot was $13.02, with a weighted average remaining lease term of 4.3 years[87] - Approximately 10.5% of total annualized base rent is scheduled to expire during the year ending December 31, 2023, with expected rental rates for new leases projected to be above current rates[92] - Cash rent changes on new and renewed leases during the three months ended March 31, 2023, were approximately 69.3% higher compared to previous rental rates for the same space[92] Development and Acquisitions - The company has four properties under development or redevelopment, expected to consist of 12 buildings totaling approximately 2.3 million square feet, with a total expected investment of approximately $571.2 million[87] - The company acquired three industrial properties for a total purchase price of approximately $382.6 million during the three months ended March 31, 2023[94] - The company has two outstanding contracts to acquire industrial properties for a total purchase price of $62.9 million, subject to satisfactory due diligence[101] Capital Structure and Financing - The company completed a public offering of 5,750,000 shares at $62.50 per share, raising approximately $355.9 million in net proceeds for acquisitions[97] - The company maintains a flexible capital structure with a goal to preserve an investment-grade rating and limit consolidated indebtedness to less than 35% of total enterprise value[116] - As of March 31, 2023, total net debt increased to $770.9 million from $720.9 million as of March 31, 2022, representing a 6.5% increase[127] - The company expects to meet short-term liquidity needs through net cash from operations and existing cash balances, while long-term needs will be funded through various financing methods including equity and debt securities[117] Expenses and Costs - General and administrative expenses rose by approximately $1.8 million, primarily due to increased compensation expenses and a higher number of employees[113] - Interest expense increased by approximately $2.3 million to $7.375 million, attributed to the full borrowing of a $100 million unsecured term loan and higher average interest rates[115] - Inflation has increased construction costs and operating expenses, but approximately 65.0% of leases expire within five years, allowing the company to seek new leases at current market rates[102] Dividends - A cash dividend of $0.40 per share was declared on May 2, 2023, payable on July 14, 2023[100] - The company declared a cash dividend of $0.40 per share on February 7, 2023, payable on April 6, 2023[128]