96.3% quarter-end occupancy compared to prior quarter of 96.1% and prior year of 96.6%
97.6% quarter-end same-store occupancy compared to prior quarter of 97.6% and prior year of 96.4%
22.4% increase in cash rents on new and renewed leases and tenant retention ratio of 72.6%
$101.8 million of acquisitions
$24.4 million of acquisitions under contract or letter of intent
$55.1 million of dispositions; $86.2 million year-to-date
$12.8 million of dispositions under contract
Completed the development and stabilization of one property with a total expected investment of $43.4 million
Issued 2,081,288 shares of common stock at $64.85 per share under ATM for gross proceeds of $135.0 million
Obtained a new $200 million five-year unsecured term loan

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 first quarter of 2026.

Operating

As of March 31, 2026, Terreno Realty Corporation owned 310 buildings aggregating approximately 19.9 million square feet and 46 improved land parcels consisting of approximately 147.0 acres leased to 681 customers:

The operating portfolio was 96.3% leased at March 31, 2026 as compared to 96.1% at December 31, 2025 and 96.6% at March 31, 2025. Vacancy at both March 31, 2026 and December 31, 2025 included 205,000 square feet (approximately 100bps) of vacancy at Countyline Corporate Park Building 30 in Hialeah, Florida which is 100% pre-leased with leases expected to commence in the second quarter of 2026;
The same-store portfolio of approximately 17.5 million square feet was 97.6% leased at March 31, 2026 as compared to 97.6% at December 31, 2025 and 96.4% at March 31, 2025;
The improved land portfolio of 46 parcels totaling approximately 147.0 acres was 96.6% leased at March 31, 2026 as compared to 95.4% at December 31, 2025 and 95.1% at March 31, 2025;
Cash rents on new and renewed leases totaling approximately 0.7 million square feet and 7.2 acres of improved land commencing during the first quarter increased approximately 22.4% with a tenant retention ratio of 72.6% for the operating portfolio and 45.8% for the improved land portfolio;
Executed a lease for 66,000 square feet in Rancho Dominguez, California with a manufacturer and distributor of laboratory reagents, stains and disinfectants. The lease will commence June 1, 2026, immediately after the current lease expires, and will expire September 2036;
Executed three full-building leases totaling 145,000 square feet in Redondo Beach, California with a domestic energy company. The leases commence March 1, 2026 for 45,000 square feet, June 1, 2026 for 51,000 square feet and March 1, 2027 for 49,000 square feet, all immediately upon expiration or termination of existing leases. The three leases will expire December 2031. To facilitate the new leases, Terreno Realty Corporation terminated effective February 28, 2026 an in-place lease for 45,000 square feet that was to expire April 30, 2026;
Executed an early lease renewal for a 2.8-acre improved land parcel in Gardena, California with a provider of container drayage services. The lease, which was to expire in May 2026, will now expire August 2029. In addition, the tenant has leased an immediately adjacent 2.3-acre improved land parcel which commenced April 1, 2026 upon termination of the existing tenant lease and will expire August 2029;
Executed a lease for 88,000 square feet in Countyline Corporate Park Building 25 in Hialeah, Florida with a provider of export and reverse logistics. The lease commences July 1, 2026 and will expire December 2031. In order to facilitate the new lease Terreno Realty Corporation negotiated an early termination with the existing tenant whose lease was to expire August 31, 2026;
Executed an early lease renewal for a 3.5-acre improved land parcel in Newark, New Jersey with a leading national full-service equipment rental firm. The lease, which was to expire August 2027, will expire February 2036; and
Pre-leased 220,000 square feet in Countyline Corporate Park Phase IV Building 35 in Hialeah, Florida to a national tire distributor commencing with building completion and tenant build-out, expected to be in the fourth quarter of 2026, and expiring July 2032. Building 35, the final of ten buildings developed by Terreno Realty Corporation in Countyline Corporate Park, is under construction and is expected to achieve LEED certification with a total expected investment of $51.3 million. The estimated stabilized cap rate is 6.0%.

Investment

During the first quarter of 2026, Terreno Realty Corporation acquired two industrial properties consisting of two buildings containing approximately 119,000 square feet for an aggregate purchase price of approximately $101.8 million. The first quarter investment activity was as follows:

28-10 Whitestone Expressway: One cross-dock industrial distribution building containing approximately 81,000 square feet with an additional two floors of indoor parking on 4.0 acres located in College Point, Queens, New York, approximately 1 mile from the Van Wyck Expressway and Grand Central Parkway and approximately 3 miles east of LaGuardia airport. The property provides 13 dock-high and three grade-level loading positions and parking for 226 cars. The building was acquired shell complete for a purchase price of approximately $92.0 million. Terreno Realty Corporation will permit and construct interior finishes, including approximately 8,000 square feet of office, expected to be completed in early 2027. The total expected investment is $103.4 million and the estimated stabilized cap rate is 5.4%; and
175 Canal Street West: One industrial distribution building containing approximately 38,000 square feet on 0.9 acres located in the Bronx, New York, immediately adjacent to the Major Deegan Expressway (I-87) and between the Third Avenue and Madison Avenue bridges. The property was acquired 100% leased for one year for a purchase price of approximately $9.8 million. At lease expiration Terreno Realty Corporation will demolish a portion of the building and construct improvements to improve functionality. After renovation the building is expected to contain approximately 29,000 square feet with seven grade-level loading positions and off-street parking. The total expected investment is $12.2 million and the estimated stabilized cap rate is 5.3% initially and 6.1% after renovation.

During the first quarter of 2026, Terreno Realty Corporation sold two properties consisting of three buildings containing approximately 287,000 square feet for an aggregate sale price of approximately $55.1 million:

One light industrial building containing approximately 56,000 square feet on 4.5 acres in Lanham, Maryland, for a sale price of approximately $11.1 million. The property was purchased by Terreno Realty Corporation in December 2013 for approximately $5.6 million. The unleveraged internal rate of return generated by the investment was 10.8%; and
Two industrial distribution buildings containing approximately 231,000 square feet on 11.1 acres in Gardena, California, for a sale price of approximately $44.0 million. The property, under redevelopment at time of sale, was purchased by Terreno Realty Corporation in December 2017 for approximately $37.6 million. The unleveraged internal rate of return generated by the investment was 6.3%.

Subsequent to March 31, 2026, Terreno Realty Corporation sold one property consisting of a 99,000 square foot industrial distribution building in Torrance, California for a sale price of approximately $31.1 million. The property was purchased by Terreno Realty Corporation in January 2018 for approximately $17.5 million. The unleveraged internal rate of return generated by the investment was 10.3%.

Year-to-date, Terreno Realty Corporation has sold three properties consisting of four buildings containing approximately 386,000 square feet for an aggregate sale price of approximately $86.2 million.

During the first quarter of 2026, Terreno Realty Corporation completed the redevelopment and stabilization of Countyline Corporate Park Phase IV Building 32 in Hialeah, Florida. Building 32 is 100% leased to two tenants. Building 32 of Terreno Realty Corporation's Countyline Corporate Park is a 164,000 square foot 36-foot clear height rear-load industrial distribution building on 8.3 acres with 53 dock-high and two grade-level loading positions and parking for 148 cars. The building is expected to achieve LEED certification, the total investment is $43.4 million and the estimated stabilized cap rate is 6.0%.

As of March 31, 2026, Terreno Realty Corporation had five properties under development or redevelopment that, upon completion, will consist of five buildings aggregating approximately 0.9 million square feet which are approximately 71.5% pre-leased, with a total expected investment of approximately $323.8 million.

Terreno Realty Corporation has approximately $11.4 million of acquisitions under contract and approximately $13.0 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 $4.0 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 first quarter of 2026, Terreno Realty Corporation issued 2,081,288 shares of common stock with a weighted average offering price of $64.85 per share under the Company's at-the-market equity offering program, receiving gross proceeds of $135.0 million. Terreno Realty Corporation did not repurchase any shares of common stock pursuant to the Company's share repurchase authorization.

On January 7, 2026, Terreno Realty Corporation obtained a new $200 million five-year unsecured term loan. The loan will mature on January 15, 2031, and the interest rate generally will be SOFR plus 1.15% to 1.65%, depending on leverage. Additionally, the previous 10 basis point SOFR credit spread adjustment premium was eliminated on all credit facility borrowings, including term loans. The current interest rate is SOFR plus 1.15%, and proceeds from the term loan were used to reduce borrowings under Terreno Realty Corporation's $600 million revolving credit facility and for general corporate purposes.

As of March 31, 2026, there were no borrowings outstanding under Terreno Realty Corporation's $600 million revolving credit facility. 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 quarterly report on Form 10-Q for the quarter ended March 31, 2026 on or about May 6, 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, 2025 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.

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Terreno Realty Corporation

Jaime Cannon, 415-655-4580

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