Terreno Realty Corporation Reports 18.2% Revenue Growth to $382.6 Million for Fiscal Year 2024

Terreno Realty Corporation reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total revenues reaching $382.6 million, a rise of 18.2% from $323.6 million in 2023. The company's net income also saw a notable increase, climbing to $184.5 million, up 21.8% from $151.5 million in the previous year. This growth was primarily driven by higher rental revenues and tenant expense reimbursements, which increased by 17.5% to $300 million, alongside a substantial rise in tenant expense reimbursements, which grew by 21.2% to $82.7 million.

In terms of operational metrics, Terreno Realty's occupancy rate decreased slightly from 98.5% at the end of 2023 to 97.4% by the end of 2024. This decline was attributed to the acquisition of approximately 176,000 square feet of vacant space, with 42,000 square feet of that expected to be leased starting January 2025. The company maintained a strong tenant retention ratio of 82.4% for the operating portfolio during the fourth quarter of 2024, although the retention for improved land was notably lower at 0%.

Strategically, Terreno Realty made significant acquisitions during 2024, purchasing eight industrial properties and one portfolio for a total of approximately $884.5 million. This included the assumption of a mortgage loan with a principal amount of $72.9 million. The company also reported that it had six properties under development or redevelopment, which are expected to add approximately 0.9 million square feet of space upon completion. The total expected investment for these projects is around $432.9 million.

The company’s balance sheet reflects a total debt of approximately $829.9 million as of December 31, 2024, an increase from $775 million in the previous year. This includes $82 million drawn from a revolving credit facility and $200 million in term loans. The company also completed a public offering of 6.3 million shares at $62.00 per share in March 2024, generating net proceeds of approximately $387.1 million, which were utilized for acquisitions.

Looking ahead, Terreno Realty expressed optimism regarding rental rates for new and renewed leases, anticipating that they will exceed current rates. However, the company acknowledged that ongoing speculative development in its markets may temper potential rent growth. The management remains focused on maintaining a strong balance sheet and is well-positioned for future growth, with $82 million outstanding on its credit facility and a cash balance of approximately $18.1 million as of the end of 2024.