Terreno Realty Corporation

Business model

• Acquires, owns, and operates industrial real estate in six major U.S. coastal markets: New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle, and Washington, D.C.
• Asset mix:
  • Warehouse/distribution properties (about 80.5% of total annualized base rent)
  • Flex/light industrial and R&D space (about 3.4%)
  • Transshipment facilities (about 6.0%)
  • Improved land (about 10.1%)
• Focus on infill, functional properties that can be shared by multiple tenants and serve demand within submarkets. Infill refers to properties surrounded by existing development.

Portfolio size and composition (as of 12/31/2025)

• Total properties:

  • 309 buildings
  • 46 improved land parcels
  • 6 properties under development or redevelopment

• Leasing status:

  • Buildings leased: 96.1%
  • Improved land leased: 95.4%

• Customers: 683

• Largest single tenant by base rent: 4.9% of total annualized base rent

• By type (annualized base rent in thousands; percent of total):

  • Warehouse/distribution: $287,366 (80.5%)
  • Flex: $12,043 (3.4%)
  • Transshipment: $21,392 (6.0%)
  • Improved land: $35,918 (10.1%)

• By market (annualized base rent in thousands; total = $356,719):

  • New York City/Northern New Jersey: $94,935
  • Los Angeles: $54,764
  • Miami: $59,888
  • San Francisco Bay Area: $58,987
  • Seattle: $54,329
  • Washington, D.C.: $33,816

• Rentable space and occupancy by market:

  • New York City/Northern New Jersey: 3,545,337 sq ft; occupancy 93.0%
  • Los Angeles: 2,626,153 sq ft; occupancy 99.5%
  • Miami: 4,659,694 sq ft; occupancy 92.2%
  • San Francisco Bay Area: 3,208,440 sq ft; occupancy 99.3%
  • Seattle: 3,556,981 sq ft; occupancy 98.3%
  • Washington, D.C.: 2,180,643 sq ft; occupancy 97.1%

• Improved land:

  • 46 parcels, 147.0 acres
  • Overall land occupancy: 95.4%
  • Annualized base rent for improved land: $40,926k (10.1% of total)

• Land investments by market (acres and % of total):

  • NYC/NJ: 14 acres (62.8%)
  • Los Angeles: 13 acres (28.8%)
  • Miami: 3 acres (9.9%)
  • SF Bay Area: 5 acres (14.4%)
  • Seattle: 9 acres (23.8%)
  • DC: 2 acres (7.3%)

Development and near-term plans

• Six properties under development or redevelopment, planned to become nine buildings totaling about 1.2 million square feet.
• Total expected investment for these projects: roughly $372.5 million (includes redevelopment costs, capitalized interest, etc.).
• 2025 spend on development activities:
  • Development/redevelopment expenditures: $59.546 million
  • Capitalized interest: $5.011 million
  • Combined 2025 spend: $64.557 million

Revenue and rent metrics

• Total annualized base rent (as of 12/31/2025): $356.719 million
• Top 20 customers:
  • 51 leases covering 5,661,770 rentable square feet (28.6% of total rentable square feet)
  • Top 20 represent $86.127 million of base rent (24.1% of total annualized base rent)
  • Tenants include Amazon.com, FedEx, Quanta Manufacturing Nashville, Imperial Bag & Paper, Danaher, and the U.S. Government
• Lease expirations (by year, at expiration, excluding renewal/extension rights):
  • 2026: 3,608,078 sf; $57.835 million
  • 2027: 2,869,933 sf; $49.443 million
  • 2028: 2,570,399 sf; $53.558 million
  • 2029: 2,543,753 sf; $51.727 million
  • 2030: 2,056,514 sf; $37.890 million
  • Thereafter: 5,356,362 sf; $113.622 million
• Tenant retention:
  • Operating portfolio: 67.9% (Q4 2025) and 70.2% (full year 2025)
  • Improved land portfolio: 0% (Q4 2025) and 74.1% (full year 2025)

Corporate structure and status

• Structure: Maryland corporation, internally managed (not an UPREIT; could adopt a similar structure if needed)
• Tax status: Elected REIT status beginning with the 2010 tax year
• Management: External property managers commonly used for day-to-day operations
• Credit rating: Fitch BBB+ with a stable outlook

Principal debt and liquidity (as of 12/31/2025)

• Total debt, net of deferred financing costs and unamortized fair value adjustments: approximately $943.3 million
• Composition: revolving credit facility borrowings, term loans, senior unsecured notes, and a mortgage loan
• Outstanding senior unsecured notes: $475.0 million
• Mortgage loan payable: approximately $72.9 million
• One mortgage encumbers a property bearing 3.9% interest; recorded fair value adjustment on purchase

Financing policy targets (subject to change by the board)

• Debt plus preferred stock to be less than 30% of total enterprise value

• Fixed charge coverage ratio > 2.0x

• Net debt-to-adjusted EBITDA < 4.5x

• Floating rate debt < 20% of total indebtedness

• Use of capital: unsecured debt, secured debt, equity proceeds, dispositions, and potential debt refinancing

Employees

• As of February 3, 2026: 47 employees
• No union affiliation or collective bargaining agreements
• Emphasis on human capital, governance, and safety programs

Operations and risk context

• Properties are primarily industrial with emphasis on infill and tenant flexibility
• Leasing is generally triple-net or modified gross; most leases include fixed or CPI-based rent escalators
• The company uses third-party managers for daily operations; potential related-party conflicts are managed
• The business is REIT-based with required distributions; capital markets sensitivity and leverage risk are part of the operating context
• Environmental, climate-related, and safety considerations are ongoing risk factors