Terreno Realty (TRNO) Q1 2025 earnings summary

Executive summary

• Focused on acquiring, owning, and operating industrial real estate in six major coastal U.S. markets, emphasizing infill locations and value-add opportunities.

• Portfolio consists of 19.3 million square feet across 298 buildings, 47 improved land parcels totaling 150.6 acres, and five properties under development or redevelopment.

• Total revenues for Q1 2025 increased 29.9% year-over-year to $110.4 million, driven by higher rental rates, new and renewed leases, and 2024 property acquisitions.

• Net income rose 33.5% to $48.1 million compared to Q1 2024, with gains from property sales and improved operating performance.

• Management compensation is fully aligned with shareholders, with no annual cash bonuses for CEO/President and significant insider ownership.

Financial highlights

• Q1 2025 net income available to common stockholders was $47.9 million, up from $35.9 million in Q1 2024.

• Funds from Operations (FFO) per share (diluted) was $0.62, up from $0.57 year-over-year.

• Adjusted Funds from Operations (AFFO) was $49.7 million, with common stock dividends paid of $48.9 million.

• Net operating income increased 27.3% to $81.7 million; same store NOI up 3.3% to $64.6 million.

• Cash same store NOI growth was 7.0% year-over-year; excluding termination fees, growth was 6.9%.

Outlook and guidance

• Countyline Corporate Park Phase IV in Miami is expected to deliver 2.2 million square feet by 2027, with 55% stabilized, 25% under development (74% pre-leased), and 20% for future development.

• Acquisition pipeline includes $49.0 million under contract and $75.8 million under LOI as of May 6, 2025.

• Five properties under development/redevelopment totaling 813,000 sq ft, with 48.3% pre-leased and $275.7 million expected investment.

• Board declared a $0.49 per share dividend payable July 11, 2025.

• No debt maturities in 2025 and $50 million due in 2026; strong balance sheet with no borrowings on $600 million credit facility.