Terreno Realty (TRNO) Q3 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 functional assets.

• Portfolio consists of 307 buildings totaling 20.2 million square feet, with 44 improved land parcels (146.4 acres) and six properties under development or redevelopment as of September 30, 2025.

• Maintains a highly selective investment approach, targeting assets at discounts to replacement cost and prioritizing superior same store NOI and per share NAV growth.

• Demonstrated value creation with 45 properties sold since IPO for $1.1 billion, earning a 12.7% unleveraged IRR.

• Occupancy rates as of September 30, 2025: 96.2% for buildings and 93.6% for improved land parcels.

Financial highlights

• Q3 2025 net income available to common stockholders was $103.4 million ($1.00 per share), up from $36.5 million ($0.37 per share) in Q3 2024.

• Funds from Operations (FFO) for Q3 2025 was $69.0 million ($0.67 per share), compared to $60.40 million ($0.62 per share) in Q3 2024.

• Adjusted Funds from Operations (AFFO) for Q3 2025 was $52.45 million, up from $46.30 million in Q3 2024.

• Cash same store NOI growth for Q3 2025 was 6.9% year-over-year.

• Q3 2025 acquisitions totaled $472.6 million; year-to-date acquisitions reached $601.7 million.

Outlook and guidance

• Six properties under development or redevelopment as of September 30, 2025, 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, with 2.2 million square feet of LEED-certified industrial space expected by 2027.

• Management expects continued growth through acquisitions, development, and redevelopment, with three properties under contract for $82.3 million and one LOI for $11.4 million as of November 4, 2025.

• Lease expirations representing 3.0% of annualized base rent are scheduled for the remainder of 2025, with anticipated positive rent spreads on renewals.

• No debt maturities in 2025 and $50 million due in 2026; strong balance sheet and investment grade credit rating.