Terreno Realty (TRNO) AI Stock Analysis

• Market Cap: $5.84B
• Dividend Yield: 3.46%
• Average Volume (3M): 868.39K
• Price to Earnings (P/E): 28.6
• Beta (1Y): 0.81
• Revenue Growth: 22.17%
• EPS Growth: 4.34%
• Country: US
• Employees: 49
• Sector: Real Estate
• Sector Strength: 57
• Industry: REIT - Industrial
• EPS (TTM): 0.48
• Shares Outstanding: 103,324,036
• 10 Day Avg. Volume: 1,090,416
• 30 Day Avg. Volume: 868,387
• PEG Ratio: 0.11
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 56.05
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 3.35
• Enterprise Value/Gross Profit: 18.06
• Enterprise Value/Ebitda: 5.74
• 1Y Price Target: $60.25
• Price Target Upside: 6.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 67 Neutral
• Price Target: $61.00 ▲(7.62%Upside)

Terreno Realty's strong financial performance, characterized by robust growth and stable cash flows, is the most significant positive factor. However, the stock's technical indicators suggest a bearish trend, and the high P/E ratio raises concerns about potential overvaluation. These factors combined result in a moderate overall stock score.

Positive Factors

Acquisitions

TRNO continues to source attractive deals, allowing for accretive acquisitions.

Earnings

TRNO had a strong 1Q25 core result with +6.9% Cash SSNOI and accelerating lease spreads.

Growth Potential

TRNO is forecasted to have the highest average annual growth across the REIT coverage from 2025 through 2027.

Negative Factors

Debt

Bad debt expectations increased to 150bps of A/R reserves vs. its historical average.

Financial Performance

The company reported FFO numbers lower than consensus and previous estimates, impacting expectations.

Lease Performance

TRNO now expects cash rent spreads in the mid-20% range, vs. high 20's/low 30's% previously expected.

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 Corporation generates revenue primarily through the leasing of its industrial properties to a diverse range of tenants. The company collects rental income from tenants who occupy its warehouses and distribution centers, which is typically structured through long-term lease agreements providing stable and predictable cash flows. Additionally, Terreno Realty may realize capital gains through the strategic sale of properties when market conditions are favorable. The company's focus on key coastal markets, characterized by high demand and limited supply, allows it to achieve higher rental rates and property appreciation. Furthermore, Terreno's operational strategy involves maintaining high occupancy rates and optimizing property management to enhance asset value and maximize shareholder returns.

Terreno Realty Financial Statement Overview

Summary

Terreno Realty exhibits strong financial health with impressive revenue growth, solid profitability, and robust cash flow management. The balance sheet shows financial stability with moderate leverage and a healthy equity base, underscoring effective capital management.

Income Statement

Terreno Realty demonstrates strong revenue growth with a consistent increase in total revenue over the years. The gross profit margin remains robust, reflecting efficient cost management, and the net profit margin is healthy, indicating solid profitability. The company shows improvement in EBIT and EBITDA margins, highlighting operational efficiency.

Balance Sheet

The company's balance sheet is solid with a favorable debt-to-equity ratio, indicating reasonable leverage. The return on equity is impressive, showcasing effective use of shareholder funds. The equity ratio is strong, reflecting financial stability with a substantial proportion of assets funded by equity.

Cash Flow

Terreno Realty shows positive cash flow management with consistent free cash flow generation. The operating cash flow to net income ratio indicates robust cash flow efficiency. Free cash flow growth is evident, supporting potential reinvestment opportunities and shareholder returns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	408.01M	382.62M	323.59M	276.21M	221.93M	186.88M
Gross Profit	279.03M	284.53M	244.50M	207.31M	165.68M	137.79M
EBITDA	278.86M	241.87M	206.35M	287.63M	156.00M	141.67M
Net Income	196.56M	184.50M	151.46M	198.01M	61.51M	58.38M
Balance Sheet
Total Assets	4.91B	4.77B	3.90B	3.16B	2.92B	2.14B
Cash, Cash Equivalents and Short-Term Investments	156.50M	18.07M	165.40M	26.39M	204.40M	107.18M
Total Debt	741.91M	823.44M	771.56M	770.82M	720.67M	459.12M
Total Liabilities	1.01B	1.11B	990.05M	934.59M	866.25M	551.64M
Stockholders Equity	3.90B	3.66B	2.91B	2.23B	2.06B	1.59B
Cash Flow
Free Cash Flow	150.33M	186.25M	126.62M	76.60M	80.92M	69.44M
Operating Cash Flow	247.08M	232.69M	179.68M	143.21M	132.21M	101.05M
Investing Cash Flow	-890.72M	-915.48M	-570.39M	-337.66M	-666.44M	-52.09M
Financing Cash Flow	140.32M	534.91M	528.86M	17.73M	631.20M	-53.87M

Terreno Realty Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 56.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 56.68 is below the 20-day moving average (MA) of 57.53, below the 50-day MA of 56.89, and below the 200-day MA of 60.62, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 46.09 is Neutral, neither overbought nor oversold. The STOCH value of 23.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TRNO.

Terreno Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EGP	80 Outperform	$8.82B	36.70	7.61%	3.33%	11.92%	-0.83%
STAG	77 Outperform	$6.97B	27.59	7.15%	4.08%	8.81%	33.30%
REXR	77 Outperform	$8.56B	29.39	3.35%	4.75%	18.02%	12.12%
FR	75 Outperform	$6.60B	23.99	10.18%	3.70%	9.18%	-7.05%
Sector *	70 Neutral	¥231.55B	14.14	10.67%	19.67%	17.32%	17.90%
TRNO	67 Neutral	$5.84B	28.57	5.33%	3.46%	22.17%	4.34%
LXP	66 Neutral	$2.47B	42.67	2.98%	6.54%	5.68%	358.78%

Terreno Realty Corporate Events

Terreno Realty Approves 2025 Equity Incentive Plan

On May 6, 2025, Terreno Realty Corporation held its Annual Meeting of Stockholders in Bellevue, Washington, where the stockholders approved the 2025 Equity Incentive Plan, replacing the 2019 Plan, and authorized the issuance of 2,000,000 shares of common stock. Additionally, the stockholders elected directors, approved executive compensation, and ratified the appointment of Ernst & Young LLP as the independent registered certified public accounting firm for the 2025 fiscal year. These decisions are expected to impact the company’s strategic direction and governance, reinforcing its commitment to aligning executive incentives with shareholder interests and ensuring robust financial oversight.