Terreno Realty (TRNO) Q1 2026 earnings summary

Executive summary

• Focused on acquiring, owning, and operating industrial real estate in six major coastal U.S. markets, emphasizing infill locations and functional assets.

• Total revenues for Q1 2026 increased 12.7% year-over-year to $124.4 million, driven by higher rental rates, new and renewed leases, and property acquisitions, partially offset by dispositions and a slight decrease in occupancy.

• Portfolio occupancy remained high at 97.7% as of March 31, 2026, with 19.9 million square feet across 310 buildings.

• Demonstrated strong long-term value creation, with a 12.4% unleveraged IRR on 48 properties sold since IPO and a 10.2% total shareholder return CAGR since 2010.

• Portfolio included 681 customers, with no tenant accounting for more than 4.8% of annualized base rent.

Financial highlights

• Q1 2026 net income available to common stockholders was $69.4 million, up 44.3% year-over-year.

• Net income per diluted share was $0.66, compared to $0.47 in the prior year quarter.

• FFO per diluted share rose to $0.68, up 9.7% year-over-year.

• Adjusted Funds from Operations (AFFO) totaled $51.3 million, with dividends paid of $54.1 million.

• Cash same store NOI growth was 8.9% year-over-year.

Outlook and guidance

• Management expects continued growth from new and renewed leases, with cash rent changes on new/renewed leases up 22.4% in Q1 2026.

• Five properties under development or redevelopment totaling 0.9 million square feet and $323.8 million in expected investment are underway.

• Countyline Corporate Park Phase IV in Miami is expected to deliver 2.2 million square feet of LEED-certified space by 2027.