Terreno(US:TRNO)2025-11-05 21:01Real Estate Portfolio - As of September 30, 2025, Terreno Realty Corporation owned a total of 307 buildings and 44 improved land parcels, aggregating approximately 20.2 million square feet[97] - The company owns 307 buildings across various markets, with a total rentable square footage of 20,152,313 square feet[101] - The occupancy rates for buildings and improved land parcels were approximately 96.2% and 93.6%, respectively, leased to 676 customers[97] - The overall occupancy rate for the real estate portfolio was 96.2% as of September 30, 2025[101] - The improved land parcels total 136.9 acres, with an annualized base rent of $40,121,000, accounting for 10.1% of total annualized rent[106] - The company has six properties under development or redevelopment and approximately 10.7 acres of land for future development[97] Financial Performance - Total revenues increased by approximately $16.6 million to $116.2 million for the three months ended September 30, 2025, representing a 16.7% increase compared to the same period in 2024[131] - Total rental revenues rose by 17.2% to $92.3 million, driven by a 5.1% increase in same store rental revenues and a 63.0% increase in non-same store operating properties[130] - Net income surged by 182.1% to $103.4 million for the three months ended September 30, 2025, compared to $36.6 million in the prior year[130] - For the nine months ended September 30, 2025, total revenues increased by approximately $60.0 million to $338.9 million, a 21.5% increase year-over-year[140] - Total net operating income for the nine months ended September 30, 2025, increased by 21.7% to $254.0 million, driven by both same store and non-same store properties[139] Rental Income - The company’s annualized base rent as of September 30, 2025, was $350.5 million, with warehouse/distribution properties contributing 80.4% of this total[99] - The annualized base rent from improved land was $35,081,000, with a total occupancy rate of 93.6%[101] - The annualized base rent from flex properties was $11.8 million, representing 3.4% of the total[99] - The total annualized base rent for all buildings and improved land parcels is projected to be $397,168,000 as of September 30, 2025[107] - The annualized base rent for the operating portfolio increased to $29,627,000 for the nine months ended September 30, 2025, from $26,287,000 in 2024[103] Development and Acquisitions - The company has six properties under development, expected to total approximately 0.9 million square feet upon completion[101] - The company acquired two industrial properties and one portfolio for a total purchase price of approximately $472.6 million during the three months ended September 30, 2025[110] - The company executed a non-binding letter of intent to acquire an industrial property for approximately $11.4 million, indicating ongoing market expansion efforts[169] Expenses and Costs - Total property operating expenses increased by approximately $2.6 million to $28.2 million, primarily due to property acquisitions and increased real estate taxes[132] - General and administrative expenses rose by approximately $3.8 million to $35.7 million for the nine months ended September 30, 2025, primarily due to increased compensation expenses[143] - Interest expense increased by approximately $7.7 million to $(23.3) million for the nine months ended September 30, 2025, attributed to higher outstanding debt[139] Debt and Financing - Total debt increased to $1,022.9 million as of September 30, 2025, from $672.2 million in 2024, resulting in a total debt-to-total market capitalization ratio of 14.8%, up from 9.2%[159] - The Amended Facility consists of a $600.0 million revolving credit facility and $200.0 million in term loans, with $280.0 million and $200.0 million of borrowings outstanding, respectively, as of September 30, 2025[153] - The weighted average interest rate for the company's total debt was 4.2% as of September 30, 2025[158] - Floating rate debt as a percentage of total debt increased to 46.9% as of September 30, 2025, compared to 29.7% in 2024, reflecting a higher exposure to interest rate fluctuations[159] Shareholder Returns - A cash dividend of $0.52 per share was declared on November 4, 2025, payable on January 9, 2026[119] - The company paid dividends of $0.49 per share for the first two quarters of 2025 and $0.52 per share for the third quarter, reflecting a consistent dividend policy[160] Risks and Compliance - Risks include potential tenant bankruptcies, increased vacancy rates, and elevated interest rates impacting financial performance[96] - The company faces risks related to compliance with laws and regulations applicable to public companies[96] - The company is exposed to interest rate risk primarily due to debt used for liquidity and capital expenditures, and plans to manage this risk through interest rate caps and swap agreements[185]