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Mar 31
Terreno Realty Q1 2025 Earnings Report
Terreno Realty Corporation reported a significant increase in total revenues and net income for Q1 2025, driven by property acquisitions and increased rental rates.
Key Takeaways
Terreno Realty Corporation experienced substantial growth in the first quarter of 2025, with total revenues increasing by 29.9% and net income rising by 33.5% compared to the same period last year. This performance was primarily fueled by property acquisitions in 2024 and higher rental rates on new and renewed leases.
Total revenues increased by $25.39 million to $110.42 million, a 29.9% increase from Q1 2024.
Net income available to common stockholders rose by 33.5% to $47.918 million, resulting in basic EPS of $0.48.
The company completed the redevelopment of one property, East Garry Avenue, with a total expected investment of $41.3 million.
Terreno Realty Corporation acquired two industrial properties post-quarter end for a total of $16.9 million, indicating continued expansion.
Terreno Realty
Terreno Realty
Terreno Realty Revenue by Segment
Terreno Realty Revenue by Geographic Location
Revenue by Segment
Rental income Revenue
CapyFin.comTenant expense reimbursements Revenue
CapyFin.comRevenue by Geographic Location
Los Angeles Revenue
CapyFin.comNorthern NJ/NYC Revenue
CapyFin.comSan Francisco Bay Area Revenue
CapyFin.comSeattle Revenue
CapyFin.comMiami Revenue
CapyFin.comWashington, D.C. Revenue
CapyFin.com Forward Guidance
Terreno Realty Corporation anticipates continued growth through strategic acquisitions and redevelopments, aiming to maintain financial flexibility and a conservative capital structure. The company expects to fund future investments and debt maturities through a combination of cash from operations, property dispositions, and equity/debt issuances.
Positive Outlook
- The company expects to meet short-term liquidity requirements through net cash provided by operations and existing cash balances.
- Future investments in properties, developments, and redevelopments will be funded by cash on hand, term loans, senior unsecured notes, and common/preferred stock issuances.
- The company aims to maintain a flexible capital structure with an investment grade rating.
- Staggered debt maturities are aligned with expected average lease terms, allowing for re-pricing of capital structure with market conditions.
- The company is actively pursuing new acquisitions, with two properties under contract and three non-binding letters of intent.
Challenges Ahead
- The success of the acquisition strategy depends on the ability to obtain additional capital through equity and debt issuances.
- The company's ability to re-lease or renew expiring space at current or higher rental rates will impact future results of operations.
- Actual results could differ significantly from estimates due to market conditions and management assumptions.
- Inflationary pressures on construction and operating costs could impact profitability.
- Uncertainties in trade policies and tariffs could adversely affect tenants' businesses and, consequently, the company's revenues.