Terreno Realty (TRNO) Q2 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 18.9 million square feet across 297 buildings, with occupancy at 98.2% for same store and 97.7% overall as of June 30, 2025.

• Total revenues for Q2 2025 increased 19.1% year-over-year to $112.2 million, driven by new/renewed leases, acquisitions, and higher occupancy.

• Demonstrated strong value creation with 43 properties sold since IPO, generating a 12.6% unleveraged IRR and a 12.3% dividend CAGR since 2011.

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

Financial highlights

• Q2 2025 net income available to common stockholders was $92.9 million, or $0.90 per diluted share, up from $35.5 million, or $0.37 per share, in Q2 2024.

• Funds from Operations (FFO) per diluted share was $0.64 in Q2 2025, up from $0.61 in Q2 2024.

• Cash same store NOI growth was 9.0% year-over-year in Q2 2025; excluding termination fees, growth was 7.6%.

• Q2 2025 acquisitions totaled $123.5 million; year-to-date dispositions reached $231.1 million.

• Adjusted EBITDA for Q2 2025 was $78.8 million, a 15.4% increase year-over-year.

Outlook and guidance

• Acquisitions under contract as of August 5, 2025, total $472.5 million, with an additional $26.7 million under letters of intent.

• Six properties under development or redevelopment, expected to add nine buildings and 0.9 million square feet upon completion.

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

• Management expects continued growth from acquisitions, development, and strong leasing activity, with 5.7% of annualized base rent scheduled to expire in the remainder of 2025.

• Rental rates on new and renewed leases for remaining 2025 expirations are expected to be above current rates.