Terreno Realty Corporation reported its financial results for the second quarter and first half of 2026, showing a total revenue of $124.7 million for the three months ended June 30, 2026, an increase of 11.1% from $112.2 million in the same period of 2025. For the six months ended June 30, 2026, total revenues reached $249.2 million, up 11.9% from $222.7 million year-over-year. The company's net income for the second quarter was $57.6 million, a decrease of 38.3% compared to $93.3 million in the prior year, while net income for the first half of 2026 was $127.0 million, down 10.2% from $141.4 million in 2025.
The decline in net income was attributed to a significant drop in gains from real estate sales, which fell to $12.0 million in the second quarter from $54.6 million a year earlier. Additionally, interest expenses increased due to higher outstanding debt levels, contributing to the overall decrease in profitability. The company reported a total of $72.6 million in property operating expenses for the second quarter, reflecting a 6.1% increase from the previous year, primarily driven by property acquisitions and rising real estate taxes.
Terreno Realty continued its strategic growth through acquisitions, investing approximately $282.9 million in six industrial properties during the first half of 2026, compared to $152.8 million for the same period in 2025. The company also completed the development of two properties, adding 384,300 square feet to its portfolio. As of June 30, 2026, Terreno owned 316 buildings totaling approximately 20.6 million square feet, with an occupancy rate of 97.6%. The company reported a tenant retention ratio of 55.6% for the operating portfolio during the second quarter.
In terms of financial position, Terreno's total assets increased to $5.7 billion as of June 30, 2026, up from $5.4 billion at the end of 2025. The company maintained a conservative capital structure, with total debt of approximately $942.5 million, and a net debt-to-adjusted EBITDA ratio of 2.5x. The company also declared a cash dividend of $0.57 per share, payable on October 9, 2026, reflecting its commitment to returning value to shareholders.
Looking ahead, Terreno Realty remains focused on expanding its portfolio in key coastal U.S. markets, with ongoing development projects and a robust acquisition pipeline. The company has five outstanding contracts to acquire additional properties for approximately $89.5 million, indicating a proactive approach to growth despite the challenges posed by market conditions.
About Terreno Realty Corp
Terreno Realty Corporation is a real estate investment trust specializing in the acquisition, ownership, and operation of industrial properties in six major U.S. coastal markets. Its portfolio includes warehouses, flex spaces, transshipment facilities, and land parcels, serving diverse tenants. The company focuses on infill locations with high demand, leveraging a conservative capital structure, strong governance, and strategic property management to deliver long-term value.
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