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

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 fourth quarter of 2025.

Operating

As of December 31, 2025, Terreno Realty Corporation owned 309 buildings aggregating approximately 19.8 million square feet and 46 improved land parcels consisting of approximately 147.0 acres leased to 683 customers:

Investment

During the fourth quarter of 2025, Terreno Realty Corporation acquired four industrial properties consisting of three buildings containing approximately 319,000 square feet and two improved land parcels of approximately 0.7 acres for an aggregate purchase price of approximately $87.4 million. The fourth quarter investment activity was as follows:

For the full year 2025, Terreno Realty Corporation acquired 24 industrial buildings containing approximately 2.0 million square feet and two improved land parcels of approximately 0.7 acres for an aggregate purchase price of approximately $683.5 million.

During the fourth quarter of 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%.

For the full year 2025, Terreno Realty Corporation sold eight properties consisting of 15 buildings containing approximately 1.6 million square feet for an aggregate sale price of approximately $386.4 million generating an unleveraged internal rate of return of approximately 12.2%.

During the fourth quarter of 2025, Terreno Realty Corporation commenced development of Countyline Corporate Park Phase IV Building 35 in Hialeah, Florida. Upon completion, Countyline Building 35 will consist of one approximately 220,000 square foot industrial distribution building, with a total expected investment of $55.5 million and an estimated stabilized cap rate of 6.0%. The building is expected to achieve LEED certification.

In 2025, Terreno Realty Corporation commenced development of two properties that, upon completion, will consist of two industrial distribution buildings aggregating approximately 434,000 square feet, with a total expected investment of approximately $109.6 million.

During the fourth quarter of 2025, Terreno Realty Corporation completed the redevelopment and stabilization of 49-10 27th Street in Long Island City, Queens, New York. The property consists of one industrial distribution building containing approximately 48,000 square feet on 2.2 acres, is adjacent to the entrance to the Queens-Midtown Tunnel, and provides ten dock-high and 14 grade-level loading positions with a total investment of $35.8 million. The redeveloped property is 100% leased to a contractor and rigging provider, the lease commenced December 2025 and expires August 2036. The estimated stabilized cap rate is 5.7%.

In 2025, Terreno Realty Corporation completed the development or redevelopment and stabilization of three properties consisting of three industrial distribution buildings aggregating approximately 298,000 square feet, with a total expected investment of $117.0 million.

During the fourth quarter, Terreno Realty Corporation moved its Paterson Plank III redevelopment property, which was vacant, to the operating portfolio. The total expected investment is $35.2 million.

As of December 31, 2025, Terreno Realty Corporation had six properties under development or redevelopment that, upon completion, will consist of nine buildings aggregating approximately 1.2 million square feet which are approximately 49% pre-leased, with a total expected investment of approximately $372.5 million.

Terreno Realty Corporation has approximately $11.4 million of acquisitions under contract and approximately $9.8 million of acquisitions under letters of intent. Additionally, Terreno Realty Corporation has approximately $8.8 million of dispositions under contract where due diligence has completed and $53.9 million of dispositions under contract where due diligence has commenced. 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 fourth quarter of 2025, Terreno Realty Corporation issued 700,000 shares of common stock with a weighted average offering price of $62.27 per share under the Company’s at-the-market equity offering program, receiving gross proceeds of $43.6 million. For the full year 2025, Terreno Realty Corporation issued 4,206,371 shares of common stock with a weighted average offering price of $66.81 per share under the Company’s at-the-market equity offering program, receiving gross proceeds of $281.0 million. Terreno Realty Corporation did not repurchase any shares of common stock pursuant to the Company’s share repurchase authorization.

As of December 31, 2025, the balance outstanding on Terreno Realty Corporation’s $600 million revolving credit facility was approximately $200 million. Terreno Realty Corporation has $50 million of debt maturities in July 2026 and $150 million of debt maturities in 2027.

Additional information is available on the Company’s website at www.terreno.com. Terreno Realty Corporation expects to file its annual report on Form 10-K for the year ended December 31, 2025 on or about February 4, 2026.

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.