Terreno Realty (TRNO) AI Stock Analysis

• Market Cap: $6.10B
• Dividend Yield: 3.32%
• Average Volume (3M): 795.78K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.79
• Revenue Growth: 22.17%
• EPS Growth: 40.80%
• Country: US
• Employees: 49
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 0.90
• Shares Outstanding: 103,301,590
• 10 Day Avg. Volume: 828,524
• 30 Day Avg. Volume: 795,777
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 15.31
• Enterprise Value/Gross Profit: 20.65
• Enterprise Value/Ebitda: 16.98
• 1Y Price Target: $60.82
• Price Target Upside: 2.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 76 Outperform
• Price Target: $64.00 ▲(8.33% Upside)

Terreno Realty's strong financial performance is the most significant factor, supported by robust profitability and efficient cash flow management. Technical analysis indicates moderate bullish momentum, while valuation metrics suggest a fair market price with a reasonable dividend yield. The absence of earnings call insights and corporate events means these factors do not influence the score.

Positive Factors

Acquisition Activity

Investment activity roared back with $123.5M in acquisitions and another $472.5M under contract, while maintaining sector-low leverage of 1.9x Net Debt/EBITDA.

Financial Performance

Terreno delivered a solid 2Q25 with renewed momentum, highlighted by an acceleration in cash SSNOI to +7.6%, rising occupancy, and an acceleration in leasing volume, +39% above the LTM average.

Market Position

Terreno Realty Corp is well-positioned due to their presence in tight supply-demand markets and their effective infill strategy.

Negative Factors

Economic Concerns

Management are increasingly concerned of a US recession due to tariffs and are favoring occupancy over rates.

Rent Spreads

Cash leasing spreads softened to +22.6% vs. the TTM average of +33.2%, slightly lower than mid-20% range management expected.

Tenant Bankruptcy

Southern Surfaces—a significant tenant—filed chapter 11 bankruptcy, making future rent payments uncertain.

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 leasing its industrial properties to tenants under long-term leases, which provide a stable income stream. The company earns rental income, which is its key revenue source, and typically benefits from increasing rents due to high demand for logistics space in strategic locations. Additionally, Terreno may realize revenue from property management services and potential property sales that appreciate in value over time. The company's focus on high-occupancy and low-vacancy markets, along with its strategic acquisitions and property developments, contributes to its earnings. Partnerships with logistics and retail companies also enhance tenant diversification, reducing risk and bolstering revenue stability.

Terreno Realty Financial Statement Overview

Summary

Terreno Realty exhibits strong financial health with solid growth in revenues, profitability, and cash flows. The balance sheet is stable with moderate leverage and a healthy equity base, reflecting operational efficiency and 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	426.00M	382.62M	323.59M	276.21M	221.93M	186.88M
Gross Profit	315.89M	284.53M	244.50M	207.31M	165.68M	137.79M
EBITDA	384.18M	241.87M	206.35M	287.63M	156.00M	141.67M
Net Income	254.14M	184.50M	151.46M	198.01M	61.51M	58.38M
Balance Sheet
Total Assets	4.98B	4.77B	3.90B	3.16B	2.92B	2.14B
Cash, Cash Equivalents and Short-Term Investments	128.37M	18.07M	165.40M	26.39M	204.40M	107.18M
Total Debt	742.39M	823.44M	771.56M	770.82M	720.67M	459.12M
Total Liabilities	1.04B	1.11B	990.05M	934.59M	866.25M	551.64M
Stockholders Equity	3.94B	3.66B	2.91B	2.23B	2.06B	1.59B
Cash Flow
Free Cash Flow	184.87M	186.25M	126.62M	76.60M	80.92M	69.44M
Operating Cash Flow	243.38M	232.69M	179.68M	143.21M	132.21M	101.05M
Investing Cash Flow	-430.43M	-915.48M	-570.39M	-337.66M	-666.44M	-52.09M
Financing Cash Flow	133.43M	534.91M	528.86M	17.73M	631.20M	-53.87M

Terreno Realty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 59.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 59.08 is above the 20-day moving average (MA) of 55.99, above the 50-day MA of 56.26, and below the 200-day MA of 59.14, indicating a neutral trend. The MACD of 0.61 indicates Negative momentum. The RSI at 62.27 is Neutral, neither overbought nor oversold. The STOCH value of 70.53 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	76 Outperform	$6.10B	23.52	6.85%	3.32%	22.17%	40.80%
REXR	76 Outperform	$10.15B	31.90	3.74%	3.95%	13.66%	11.34%
FR	74 Outperform	$7.13B	25.55	10.33%	3.12%	9.66%	-4.60%
STAG	73 Outperform	$7.05B	29.25	6.89%	4.02%	8.56%	22.20%
EGP	70 Outperform	$8.97B	36.27	7.66%	3.33%	11.22%	-3.16%
LXP	69 Neutral	$2.71B	33.07	4.15%	5.85%	6.64%	210.89%
Sector *	65 Neutral	$2.11B	15.89	3.79%	4.96%	4.78%	6.63%

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.