Terreno Realty Corporation Reports 19.1% Revenue Growth and 161.3% Net Income Increase in Q2 2025

Terreno Realty Corporation reported significant financial growth in its latest quarterly results, with total revenues reaching $112.2 million for the three months ended June 30, 2025, a 19.1% increase from $94.2 million in the same period last year. For the first half of 2025, revenues totaled $222.7 million, up 24.2% from $179.3 million in the prior year. The company attributed this growth primarily to increased rental revenues and tenant expense reimbursements, which rose to $112.2 million from $94.2 million year-over-year, driven by new and renewed leases and higher occupancy rates.

Net income for the second quarter surged to $93.3 million, a 161.3% increase compared to $35.7 million in the same quarter of 2024. For the six-month period, net income was $141.4 million, nearly double the $71.8 million reported in the previous year. The substantial rise in net income was bolstered by a notable gain of $54.6 million from the sale of real estate investments, which had no comparable sales in the prior year. The company’s earnings per share also reflected this growth, with basic and diluted earnings per share reaching $0.90, compared to $0.37 in the same quarter last year.

In terms of operational developments, Terreno Realty acquired six industrial properties during the second quarter for a total investment of approximately $152.8 million. This included significant investments in land and buildings, with the company assuming $26.9 million in liabilities related to these acquisitions. As of June 30, 2025, the company owned 297 buildings totaling approximately 18.9 million square feet, with an occupancy rate of 97.7%. The company also reported a tenant retention ratio of 71.1% for its operating portfolio, indicating a stable demand for its properties.

Terreno Realty's financial position improved significantly, with total assets increasing to $4.98 billion from $4.77 billion at the end of 2024. Cash and cash equivalents rose to $128.4 million, up from $18.1 million, reflecting a strong liquidity position. The company’s total liabilities decreased to $1.04 billion from $1.11 billion, primarily due to the repayment of its credit facility. The company has also maintained a conservative capital structure, with a net debt-to-adjusted EBITDA ratio of 1.9x, indicating a manageable level of debt relative to its earnings.

Looking ahead, Terreno Realty remains optimistic about its growth trajectory, with plans to continue acquiring properties in key coastal markets. The company has three outstanding contracts to acquire additional industrial properties for a total purchase price of $472.5 million, although these acquisitions are subject to due diligence and closing conditions. The company’s strategic focus on infill locations and functional properties is expected to drive future revenue growth, supported by a favorable leasing environment and ongoing demand for industrial space.