Terreno Realty (TRNO) AI Stock Analysis

• Market Cap: $6.34B
• Dividend Yield: 3.29%
• Average Volume (3M): 663.87K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.64
• Revenue Growth: 21.13%
• EPS Growth: 74.37%
• Country: US
• Employees: 49
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 0.90
• Shares Outstanding: 103,395,220
• 10 Day Avg. Volume: 628,350
• 30 Day Avg. Volume: 663,869
• PEG Ratio: 5.04
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 14.76
• P/FCF Ratio: 30.33
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 14.74
• Enterprise Value/Gross Profit: 19.77
• Enterprise Value/Ebitda: 14.22
• 1Y Price Target: $65.50
• Price Target Upside: 8.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 2.62
• Revenue Forecast (FY): $464.99M

• Rating: 75 Outperform
• Price Target: $68.00 ▲(12.21% Upside)

Terreno Realty's strong financial performance is the most significant factor, showcasing high profitability, stable balance sheet, and robust cash flow. Technical analysis provides a mixed but generally positive outlook, while valuation metrics indicate fair pricing with an attractive dividend yield. The recent corporate event of board expansion is a positive sign for governance but has a minimal direct impact on the stock score.

Positive Factors

Revenue Growth

Steady revenue growth reflects the company's ability to expand its market presence and maintain demand for its properties, supporting long-term financial health.

Cash Flow Generation

Strong cash flow generation enhances the company's ability to reinvest in growth opportunities and provide shareholder returns, ensuring financial stability.

Lease Stability

Long-term lease renewals with stable tenants like the U.S. Secret Service ensure consistent rental income, bolstering revenue predictability and reducing vacancy risk.

Negative Factors

Development Risks

Ongoing construction projects carry risks such as cost overruns and delays, which can impact financial performance and delay revenue realization from new properties.

High Investment Costs

Significant capital expenditures for property acquisitions and developments may strain financial resources and require careful management to avoid impacting liquidity.

Concentration Risk

Concentration in specific geographic areas could expose the company to regional economic downturns, affecting occupancy rates and rental income stability.

Terreno Realty Business Overview & Revenue Model

Company Description

{Terreno Realty Corporation and together with its subsidiaries, the Company) acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. All square feet, acres, occupancy and number of properties disclosed in these condensed notes to the consolidated financial statements are unaudited. As of September 30, 2020, the Company owned 219 buildings aggregating approximately 13.1 million square feet, 22 improved land parcels consisting of approximately 85.0 acres and one property under redevelopment expected to contain approximately 0.2 million square feet upon completion. The Company is an internally managed Maryland corporation and elected to be taxed as a real estate investment trust (REIT) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the Code), commencing with its taxable year ended December 31, 2010.}

How the Company Makes Money

Terreno Realty generates revenue primarily through rental income from its portfolio of industrial properties. The company leases its properties to a diverse range of tenants, including logistics companies, distributors, and e-commerce retailers, which provides a steady stream of cash flow. Additionally, Terreno Realty benefits from long-term leases that often include rent escalations, enhancing its revenue stability. The company may also engage in property sales or development projects to realize capital gains. Strategic partnerships with local real estate brokers and market experts further enhance its ability to identify and secure valuable properties, contributing to its overall profitability.

Terreno Realty Financial Statement Overview

Summary

Terreno Realty exhibits strong financial performance across all statements. The income statement shows high profitability and growth, the balance sheet reflects stability with low leverage, and the cash flow statement indicates robust cash generation and management. The company is well-positioned for continued growth and financial health.

Income Statement

Terreno Realty shows strong profitability with a high gross profit margin of 74.15% and a net profit margin of 59.66% in TTM. The revenue growth rate is positive at 3.9%, indicating steady growth. EBIT and EBITDA margins are robust at 65.56% and 90.18%, respectively, reflecting efficient operations. Overall, the income statement demonstrates solid financial health and growth potential.

Balance Sheet

The balance sheet is stable with a low debt-to-equity ratio of 0.19, indicating conservative leverage. Return on equity is moderate at 6.72%, suggesting efficient use of equity. The equity ratio is strong, reflecting a solid capital structure. Overall, the balance sheet indicates financial stability with manageable debt levels.

Cash Flow

Cash flow metrics are strong, with a significant free cash flow growth rate of 28.27% in TTM, indicating improved cash generation. The operating cash flow to net income ratio is healthy at 1.96, and the free cash flow to net income ratio is 0.76, showing effective cash conversion. Overall, the cash flow statement reflects strong cash management and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	442.61M	382.62M	323.59M	276.21M	221.93M	186.88M
Gross Profit	329.88M	284.53M	244.50M	207.31M	165.68M	137.79M
EBITDA	458.71M	299.33M	249.47M	287.63M	156.00M	108.88M
Net Income	320.88M	184.50M	151.46M	198.01M	87.25M	79.80M
Balance Sheet
Total Assets	5.33B	4.77B	3.90B	3.16B	2.92B	2.14B
Cash, Cash Equivalents and Short-Term Investments	26.15M	18.07M	165.40M	26.39M	204.40M	107.18M
Total Debt	1.02B	823.44M	771.56M	770.82M	720.67M	459.12M
Total Liabilities	1.33B	1.11B	990.05M	934.59M	866.25M	551.64M
Stockholders Equity	4.00B	3.66B	2.91B	2.23B	2.06B	1.59B
Cash Flow
Free Cash Flow	237.12M	186.25M	126.62M	76.60M	80.92M	69.44M
Operating Cash Flow	252.92M	232.69M	179.68M	143.21M	132.21M	101.05M
Investing Cash Flow	-781.79M	-915.48M	-570.39M	-337.66M	-666.44M	-52.09M
Financing Cash Flow	311.70M	534.91M	528.86M	17.73M	631.20M	-53.87M

Terreno Realty Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 60.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRNO, the sentiment is Neutral. The current price of 60.6 is below the 20-day moving average (MA) of 61.16, above the 50-day MA of 59.86, and above the 200-day MA of 57.64, indicating a neutral trend. The MACD of 0.38 indicates Positive momentum. The RSI at 48.76 is Neutral, neither overbought nor oversold. The STOCH value of 42.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TRNO.

Terreno Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EGP	78 Outperform	$9.74B	38.28	7.83%	3.15%	11.10%	-1.65%
REXR	76 Outperform	$9.61B	29.10	4.03%	4.15%	10.27%	15.25%
TRNO	75 Outperform	$6.34B	19.55	8.38%	3.29%	21.13%	74.37%
STAG	75 Outperform	$7.04B	29.11	7.17%	3.96%	9.62%	31.08%
FR	74 Outperform	$7.94B	32.55	8.97%	2.92%	9.66%	-23.17%
LXP	73 Outperform	$2.94B	26.24	5.62%	5.43%	6.98%	465.32%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Terreno Realty Corporate Events

Terreno Realty Expands Board with New Director

On November 4, 2025, Terreno Realty Corporation expanded its Board of Directors by appointing Paul J. Donahue, Jr. as a new director. Mr. Donahue will serve on multiple committees, and his appointment aligns with all regulatory requirements, potentially strengthening the company’s governance and operational oversight.