• It's the **American Tower (AMT)** of industrial real estate, owning critical logistics properties instead of cell towers.
• Think of **Simon Property Group (SPG)**, but for industrial warehouses and distribution centers rather than retail malls.
• They are the landlords for the crucial warehouses and distribution centers that companies like **Amazon** and **FedEx** use.

• Industrial Property Leasing (Category: Commercial Real Estate Leasing Services): Terreno Realty provides tenants with access to and management of industrial properties, including distribution facilities, flex properties, and improved land, through lease agreements.

Terreno Realty (symbol: TRNO) is a public Real Estate Investment Trust (REIT) specializing in the ownership, operation, and development of industrial properties.

Terreno Realty sells its services, which involve leasing industrial space, primarily to other companies rather than individuals.

However, due to Terreno Realty's strategic focus on tenant diversification across its portfolio of industrial properties, no single tenant accounts for a significant percentage of its total annualized base rent. As per its public filings (e.g., 10-K reports), no individual tenant typically represents more than 2-3% of the company's total revenue. Consequently, Terreno Realty does not have "major customers" that can be individually identified by name and public symbol in the traditional sense of having a few dominant clients. Its revenue is derived from a broad base of hundreds of different businesses leasing its properties.

W. Blake Baird, Chairman & Chief Executive Officer, Co-Founder

W. Blake Baird is a Co-Founder of Terreno Realty Corporation and has served as its Chairman and Chief Executive Officer since February 2010. Prior to co-founding Terreno Realty, Mr. Baird was President and a Director of AMB Property Corporation (now Prologis, NYSE:PLD), a global industrial real estate company. He joined AMB in January 1999 as Chief Investment Officer, was named President in January 2000, and was elected to the Board in 2001. During his time at AMB, he led a significant transformation, shifting focus to industrial properties near major airports and seaports, internalizing property operations, and expanding into 12 countries. Before AMB, Mr. Baird spent 15 years at Morgan Stanley & Co. and Dean Witter, with 11 years dedicated to real estate, most recently as head of Real Estate Investment Banking for the western United States. He was also a Co-Founder and Managing Partner of Terreno Capital Partners LLC, a private real estate investment firm, from 2007 to 2010. Mr. Baird has served as a director for other public companies, including Sunstone Hotel Investors, Inc. (NYSE:SHO) since 2016, Matson, Inc. (NYSE:MATX) from 2012-2020, and Alexander & Baldwin, Inc. (NYSE:ALEX) from 2006-2012.

Jaime J. Cannon, Executive Vice President & Chief Financial Officer

Jaime J. Cannon joined Terreno Realty Corporation in March 2010 and was promoted to Chief Financial Officer in May 2013. In this role, he oversees finance, accounting, and sustainability efforts. Before joining Terreno, Mr. Cannon worked at AMB Property Corporation (now Prologis, NYSE:PLD) from 2003 to 2010, holding various positions, including Vice President, Treasury. From 1997 to 2003, he worked at Arthur Andersen and PricewaterhouseCoopers, specializing as an Audit Manager for real estate companies.

Michael A. Coke, President, Co-Founder

Michael A. Coke is a Co-Founder of Terreno Realty Corporation and has served as its President and Director since 2010. Prior to co-founding Terreno Realty, Mr. Coke served as Chief Financial Officer and Executive Vice President of AMB Property Corporation (now Prologis, NYSE:PLD) from 1999 to 2007. He was also the President and CEO of IAT Aviation Facilities, Inc., a listed Canadian Income Trust, from October 2005 to May 2007. Additionally, Mr. Coke was a Co-Founder and Managing Partner at Terreno Capital Partners LLC from 2007 to 2010.

John T. Meyer, Executive Vice President & Chief Operating Officer

John T. Meyer joined Terreno Realty Corporation in 2010 and is responsible for overseeing the company's operations. Before joining Terreno, he was Senior Vice President, Director of Transactions for the Southwest Region of North America at AMB Property Corporation (now Prologis, NYSE:PLD). During his two decades at AMB, Mr. Meyer managed various departments, including Finance, Operations, Airport Facilities, and Customer Development.

The key risks to Terreno Realty's (TRNO) business primarily revolve around the macroeconomic environment and the specific dynamics of the industrial real estate sector.

1. Interest Rate Fluctuations: Terreno Realty is significantly exposed to interest rate changes, which can increase borrowing costs, elevate interest expenses, and reduce the attractiveness of real estate investments. The company's interest expense has notably risen in recent periods, indicating a higher debt burden that makes it more susceptible to a rising interest rate environment.
2. Adverse Economic and Real Estate Conditions, including Tenant-Related Risks: Economic downturns can lead to reduced tenant demand, downward pressure on rental rates, and increased vacancy rates. The industrial real estate market experienced a weakening in 2024 due to an excess of new industrial deliveries coinciding with slowing absorption nationally. Such conditions can result in tenant bankruptcies, defaults, or non-renewal of leases, directly impacting Terreno's rental income and overall financial performance.
3. Competition for Properties and Tenants: Terreno Realty operates in competitive markets, facing other REITs and private investors. This competition can impact its ability to acquire desirable properties on favorable terms and to maintain high occupancy rates and rental growth, particularly during periods of softening demand or increased supply in the industrial real estate sector.

Rapid advancements in warehouse automation and robotics represent a clear emerging threat to Terreno Realty (TRNO) and the broader industrial real estate sector.

Evidence for this threat is widespread and growing, with major e-commerce companies, logistics providers, and third-party logistics companies (3PLs) consistently investing billions in sophisticated automation technologies. These include robotic picking and packing systems, automated storage and retrieval systems (AS/RS), drone-based inventory management, and artificial intelligence-driven optimization platforms. The adoption of such technologies is accelerating across the logistics industry.

The mechanism of the threat is multi-faceted: firstly, these advanced systems significantly enhance operational efficiency, allowing businesses to process higher volumes of goods and achieve denser storage within smaller footprints. This increased efficiency per square foot could temper the overall demand for new industrial space, impacting TRNO's long-term growth prospects for new acquisitions and rental rate increases. Secondly, existing industrial properties, particularly older facilities in TRNO's portfolio, may not possess the necessary specifications—such as higher clear heights, increased floor loading capacities, robust power infrastructure, or specific layout configurations—to accommodate modern automation without substantial capital expenditures. This could render some assets less competitive or potentially obsolete, leading to decreased occupancy, pressure on rental rates, or a devaluation of non-adaptable properties over time, similar to how new technologies disrupted industries like physical media distribution.

Terreno Realty (TRNO) is positioned for future revenue growth over the next 2-3 years, driven by several key factors in the industrial real estate market:

1. Strong Cash Rent Growth: Terreno Realty has consistently demonstrated significant increases in cash rents on new and renewed leases. For instance, in Q2 2025, cash rents on new and renewed leases increased by approximately 22.6%, and by 26.8% year-to-date. In Q3 2025, this trend continued with a 17.2% increase in cash rents on new and renewed leases, leading to a 23.8% year-to-date increase. In 2024, the full-year increase was 36.5%. This reflects Terreno's strong market position in "wide moat" industrial real estate across major U.S. coastal markets.
2. Strategic Acquisitions: The company continues to expand its portfolio through strategic acquisitions in high-barrier, high-growth coastal U.S. markets. Terreno acquired $601.7 million in assets year-to-date through November 2025, with additional acquisitions under contract or letters of intent. In Q2 2025, acquisitions totaled $123.5 million, with $445.3 million under contract or letter of intent. These acquisitions are expected to contribute to future revenue streams.
3. Development and Redevelopment Pipeline: Terreno has an active development and redevelopment pipeline that will bring new, pre-leased industrial properties online. As of September 30, 2025, the company had six properties under development or redevelopment, totaling approximately 0.9 million square feet, which were 54% pre-leased. A notable project is Countyline Corporate Park Phase IV in Miami, with buildings expected to be completed and leased in 2025 and 2026. For example, Building 33 at Countyline Corporate Park Phase IV was 100% leased upon completion and stabilization in Q3 2025. Additionally, Building 34, commenced in Q4 2024 and expected for completion in Q3 2025, was 70% pre-leased.
4. High Occupancy Rates and Tenant Retention: Terreno maintains high occupancy rates across its portfolio, contributing to stable and growing rental income. As of June 30, 2025, the operating portfolio was 97.7% leased, with same-store occupancy at 98.5%. While overall occupancy saw a slight dip to 96.2% by September 30, 2025, due to acquired vacancy, the same-store portfolio maintained a high occupancy of 98.6%. The company also demonstrates strong tenant retention, with a 71.1% retention ratio for its operating portfolio in Q2 2025. This consistent demand for their properties, particularly in e-commerce-driven markets, supports sustained revenue.
5. Demand for Industrial Real Estate in Coastal U.S. Markets: Terreno Realty operates in six major coastal U.S. markets, including New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle, and Washington, D.C. These markets are characterized by strong demographics and a healthy demand for industrial real estate, partly fueled by the growth of e-commerce and the need for efficient logistics and distribution networks. The company's strategic focus on these supply-constrained infill markets with barriers to new development allows it to capitalize on sustained demand.

Share Repurchases

• The Board of Directors approved a share repurchase program in November 2024, authorizing Terreno Realty Corporation to repurchase up to 3,000,000 shares of its outstanding common stock through December 31, 2026.
• Terreno Realty Corporation did not repurchase any shares of common stock in 2024 or 2023.
• As of September 30, 2025, no shares of common stock had been repurchased under the authorized program.

Share Issuance

• In 2024, Terreno Realty Corporation issued 11,654,544 shares of common stock for aggregate gross proceeds of $747.2 million, including $355.1 million from its at-the-market (ATM) program and $392.1 million from a public offering.
• In 2023, the company raised $666 million through common equity issuances, comprising $311 million from its ATM program and $355 million from a public offering of 5.75 million common shares.
• Year-to-date through September 30, 2025, Terreno Realty Corporation issued 3,506,371 shares of common stock via its ATM program, generating gross proceeds of $237.4 million.

Capital Expenditures

• In 2024, Terreno Realty's total capital deployment reached a record $1.1 billion, which included acquiring 41 buildings for approximately $884.5 million.
• As of December 31, 2024, the company had six properties under development or redevelopment with an expected total investment of approximately $315.8 million, intended to consist of nine buildings aggregating approximately 0.9 million square feet.
• Year-to-date through September 30, 2025, Terreno Realty completed $596.1 million in acquisitions.