Terreno Realty (TRNO) AI Stock Analysis

• Market Cap: $6.81B
• Dividend Yield: 3.38%
• Average Volume (3M): 778.04K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.59
• Revenue Growth: 21.13%
• EPS Growth: 74.37%
• Country: US
• Employees: 49
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 1.52
• Shares Outstanding: 104,178,090
• 10 Day Avg. Volume: 639,812
• 30 Day Avg. Volume: 778,041
• PEG Ratio: 0.14
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 12.63
• P/FCF Ratio: 28.86
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 16.15
• Enterprise Value/Gross Profit: 21.30
• Enterprise Value/Ebitda: 13.80
• 1Y Price Target: $70.00
• Price Target Upside: 7.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 1.46
• Revenue Forecast (FY): $511.57M

• Rating: 75 Outperform
• Price Target: $74.00 ▲(13.20% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is driven primarily by solid financial fundamentals (growth and conservative leverage) tempered by weaker 2025 cash-flow conversion and some margin pressure. Technicals are supportive with a clear uptrend, while valuation looks fair and recent financing actions improve flexibility but add potential dilution considerations.

Positive Factors

Coastal industrial focus

Terreno’s strategic focus on warehouses and distribution facilities in major coastal markets and near ports/transport hubs gives durable demand exposure to e-commerce and trade flows. Location-driven advantages support sustained occupancy, pricing power, and long-term rent growth versus generic industrial stock.

Multi-year revenue growth and prudent leverage

Consistent revenue expansion through 2020–2025 (2025 still up 7.63%) combined with conservative leverage metrics (debt-to-equity ~0.29) underpin financial resilience. This mix supports capital deployment, dividend funding capacity, and lower refinancing stress relative to more highly leveraged REIT peers over the medium term.

Expanded financing flexibility

The refreshed $500M ATM and amended credit package (new term loan, larger revolver and accordion) materially increase liquidity and extend maturities. Greater funding optionality supports accretive acquisitions, development activity and liability management, reducing short-term refinancing pressure and enabling strategic growth.

Negative Factors

Weakened cash-flow conversion

A marked drop in cash-to-earnings conversion suggests earnings are less cash-backed, raising sustainability concerns. Lower operating cash relative to net income and a decline in free cash flow can constrain internal funding for dividends, development or debt paydown and increase reliance on external capital.

Margin pressure and earnings quality

Operating margin deterioration and an unusually elevated net margin in 2025 point to volatility and potential one-off items that may overstate core performance. Persistent margin weakness would compress FFO and cash available for distributions, making dividend coverage and reinvestment less secure over the medium term.

Rising absolute debt levels

Although leverage ratios remain moderate, the increase in absolute debt raises sensitivity to higher interest rates and future refinancing risk. Elevated debt can limit tactical flexibility, increase interest expense volatility, and require higher free cash flow allocation to debt service during adverse conditions.

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

Strong multi-year revenue growth and generally prudent leverage for an industrial REIT support the score. Offsetting this, 2025 showed weaker cash-flow conversion versus earnings (operating cash flow ~0.57x net income), a decline in free cash flow, and some operating margin compression, which raises sustainability/quality-of-earnings concerns.

Income Statement

Revenue has grown steadily from 2020–2025 (with 2025 still up 7.63%), indicating resilient demand and effective portfolio expansion. Profitability is generally strong for the period, but margins became more volatile in 2025 as gross profit and operating margins stepped down versus 2023–2024. Net income in 2025 is unusually high relative to revenue (very elevated net margin), which improves reported profitability but also raises sustainability/quality-of-earnings questions versus the underlying operating margin trend.

Balance Sheet

Leverage looks conservative for a REIT, with debt-to-equity staying in a moderate band and ending 2025 at ~0.29, supporting balance-sheet flexibility. Equity and total assets have expanded materially over time, consistent with growth and value creation. The main watch-out is debt has risen meaningfully into 2025 (higher absolute debt than prior years), which can increase sensitivity to refinancing costs even if leverage remains reasonable.

Cash Flow

Operating cash flow and free cash flow are positive across the full period, supporting internal funding capacity. However, 2025 shows a deterioration in cash generation versus earnings: operating cash flow covers only ~0.57x of net income, and free cash flow declined (-12.09% growth). While free cash flow remains a healthy share of net income (~0.77x), the 2025 step-down suggests more working-capital/capital-spend pressure or less cash-efficient earnings compared with prior years.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	476.38M	382.62M	323.59M	276.21M	221.93M
Gross Profit	361.28M	284.53M	244.50M	207.31M	165.68M
EBITDA	557.43M	299.33M	249.47M	287.63M	156.00M
Net Income	402.99M	184.50M	151.46M	198.01M	87.25M
Balance Sheet
Total Assets	5.39B	4.77B	3.90B	3.16B	2.92B
Cash, Cash Equivalents and Short-Term Investments	25.02M	18.07M	165.40M	26.39M	204.40M
Total Debt	943.34M	823.44M	771.56M	770.82M	720.67M
Total Liabilities	1.24B	1.11B	990.05M	934.59M	866.25M
Stockholders Equity	4.15B	3.66B	2.91B	2.23B	2.06B
Cash Flow
Free Cash Flow	208.46M	186.25M	126.62M	76.60M	80.92M
Operating Cash Flow	271.86M	232.69M	179.68M	143.21M	132.21M
Investing Cash Flow	-452.39M	-915.48M	-570.39M	-337.66M	-666.44M
Financing Cash Flow	187.76M	534.91M	528.86M	17.73M	631.20M

Terreno Realty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 65.37
• 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 Positive. The current price of 65.37 is above the 20-day moving average (MA) of 64.27, above the 50-day MA of 61.98, and above the 200-day MA of 58.35, indicating a bullish trend. The MACD of 1.15 indicates Positive momentum. The RSI at 58.78 is Neutral, neither overbought nor oversold. The STOCH value of 67.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRNO.

Terreno Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRNO	75 Outperform	$6.81B	16.83	10.28%	3.38%	21.13%	74.37%
EGP	74 Outperform	$10.16B	39.27	7.58%	3.15%	11.10%	-1.65%
STAG	71 Outperform	$7.41B	26.88	7.75%	4.02%	9.62%	31.08%
LXP	68 Neutral	$2.86B	26.68	5.45%	5.33%	6.98%	465.32%
FR	67 Neutral	$8.50B	33.22	9.27%	2.98%	9.66%	-23.17%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
REXR	64 Neutral	$8.61B	43.30	2.50%	4.30%	10.27%	15.25%

Terreno Realty Corporate Events

Terreno Realty Launches New $500 Million ATM Program

On February 17, 2026, Terreno Realty Corporation launched a new at-the-market equity offering program, allowing it to issue and sell up to $500 million of common stock from time to time through a syndicate of sales agents on the New York Stock Exchange and other trading venues. The company plans to use any net proceeds for general corporate purposes, including potential acquisitions, development and redevelopment projects, and repayment of debt, and this new program replaces a prior ATM under which it had already raised about $464.4 million between August 28, 2024, and February 13, 2026, effectively refreshing its equity funding capacity.

The ATM structure gives Terreno flexible access to capital depending on market conditions and its stock price, with no obligation to sell shares, while sales agents will earn commissions of up to 2.0% on any shares placed. The expanded capacity strengthens the company’s financial flexibility to pursue growth in its industrial real estate portfolio and manage leverage, which may have implications for shareholders through potential dilution but also supports continued investment in its core logistics markets.

The most recent analyst rating on (TRNO) stock is a Hold with a $72.00 price target. To see the full list of analyst forecasts on Terreno Realty stock, see the TRNO Stock Forecast page.

Terreno Realty expands credit facility with new term loan

On January 7, 2026, Terreno Realty LLC amended its senior credit agreement to add a new $200 million term loan maturing January 15, 2031, expanding its credit structure to a $600 million revolving facility maturing in 2029 and term loans totaling $400 million maturing between 2027 and 2031. The amended facility also preserves an accordion feature that could increase total borrowing capacity by up to $1 billion, caps borrowings at 60% of the value of unencumbered properties, and sets interest based on SOFR or a base rate with margins tied to leverage, while the new term loan proceeds were used to pay down revolving borrowings and for general corporate purposes, improving the company’s liquidity profile and extending its debt maturity ladder.

The most recent analyst rating on (TRNO) stock is a Buy with a $64.00 price target. To see the full list of analyst forecasts on Terreno Realty stock, see the TRNO Stock Forecast page.