Terreno Realty (TRNO) AI Stock Analysis

• Market Cap: $6.29B
• Dividend Yield: 3.38%
• Average Volume (3M): 612.54K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.62
• Revenue Growth: 21.13%
• EPS Growth: 74.37%
• Country: US
• Employees: 49
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 1.00
• Shares Outstanding: 103,395,220
• 10 Day Avg. Volume: 605,659
• 30 Day Avg. Volume: 612,541
• 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: 1.04
• Enterprise Value/Revenue: 14.74
• Enterprise Value/Gross Profit: 19.77
• Enterprise Value/Ebitda: 14.22
• 1Y Price Target: $65.82
• Price Target Upside: 8.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 1.64
• Revenue Forecast (FY): $510.09M

• Rating: 74 Outperform
• Price Target: $66.00 ▲(8.53% Upside)

The score is driven primarily by strong financial performance (high profitability, conservative leverage, and improving cash generation). Valuation is supportive with a solid dividend yield and moderate P/E, while corporate events improve liquidity and governance. These positives are partly offset by weaker near-term technical momentum (negative MACD, sub-50 RSI, and price below short-term moving averages).

Positive Factors

Free Cash Flow Growth

A 28.3% trailing‑twelve‑month FCF growth rate signals structurally stronger cash generation for a REIT. Durable higher FCF improves ability to cover dividends, service debt, and fund acquisitions or redevelopments without diluting equity, supporting long‑term payout reliability.

Conservative Leverage

A low debt-to-equity ratio (~0.19) provides lasting financial flexibility for property acquisitions and capital projects. Conservative leverage reduces default risk, eases refinancing pressure during rate cycles, and supports dividend stability—key for REIT resilience over months to years.

High Occupancy & Rent Upside

High portfolio occupancy and material cash rent increases on new/renewed leases reflect durable demand for coastal industrial logistics assets. Strong tenant retention (~70%) and rent escalation ability support stable NOI and justify ongoing redevelopment and release strategies over the medium term.

Negative Factors

Same‑Store Occupancy Softening

A year‑over‑year dip in same‑store occupancy suggests early signs of leasing softness in the operating portfolio. Persisting declines would pressure effective rents and NOI, requiring more leasing incentives or capitalized renovation to maintain cash flows over the coming quarters.

Lease Concentration / Rollover Risk

Acquisitions or assets with single‑tenant occupancy and near‑term expirations create pronounced rollover risk. If renewals or relets are delayed, the company may face vacancy, redevelopment costs, or tenant improvement outlays that can compress short‑to‑midterm cash flows before new leases stabilize.

Moderate Return on Equity

A mid‑single digit ROE indicates modest returns on invested equity, limiting organic equity growth and potential dividend expansion without raising leverage or executing high‑return dispositions. Over time this can constrain shareholder return potential relative to peers with higher ROE.

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: Positive
• Last Price: 60.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 60.81 is above the 20-day moving average (MA) of 59.83, above the 50-day MA of 60.29, and above the 200-day MA of 57.24, indicating a bullish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 58.08 is Neutral, neither overbought nor oversold. The STOCH value of 77.06 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
EGP	78 Outperform	$9.93B	39.05	7.83%	3.15%	11.10%	-1.65%
STAG	75 Outperform	$7.04B	29.12	7.17%	4.02%	9.62%	31.08%
TRNO	74 Outperform	$6.29B	19.38	8.38%	3.38%	21.13%	74.37%
FR	74 Outperform	$8.07B	33.08	8.97%	2.98%	9.66%	-23.17%
LXP	74 Outperform	$2.97B	26.50	5.62%	5.33%	6.98%	465.32%
REXR	74 Outperform	$9.53B	28.86	4.03%	4.30%	10.27%	15.25%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Terreno Realty Corporate Events

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.

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.

The most recent analyst rating on (TRNO) stock is a Buy with a $63.00 price target. To see the full list of analyst forecasts on Terreno Realty stock, see the TRNO Stock Forecast page.