Terreno Realty (TRNO) AI Stock Analysis

• Market Cap: $5.78B
• Dividend Yield: 3.56%
• Average Volume (3M): 646.15K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.78
• Revenue Growth: 22.17%
• EPS Growth: 40.80%
• Country: US
• Employees: 49
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 0.90
• Shares Outstanding: 103,301,590
• 10 Day Avg. Volume: 580,934
• 30 Day Avg. Volume: 646,153
• PEG Ratio: 5.04
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 14.76
• P/FCF Ratio: 30.33
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 15.31
• Enterprise Value/Gross Profit: 20.65
• Enterprise Value/Ebitda: 16.98
• 1Y Price Target: $62.27
• Price Target Upside: 11.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 71 Outperform
• Price Target: $62.00 ▲(10.83% Upside)

Terreno Realty's strong financial performance is the primary driver of its stock score, supported by solid profitability and financial stability. However, technical indicators suggest a bearish trend, which tempers the overall score. The valuation is reasonable, with a decent dividend yield adding to the stock's appeal.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Terreno's industrial properties, supporting long-term financial stability and expansion potential.

Strategic Acquisitions

Strategic acquisitions in key markets enhance Terreno's portfolio, increasing its footprint and potential revenue streams, supporting long-term growth.

Lease Stability

High lease occupancy rates reflect strong demand and effective property management, ensuring stable cash flow and reducing vacancy risks.

Negative Factors

Tenant Concentration Risk

High tenant concentration can pose risks if major tenants vacate or default, potentially impacting revenue stability and financial health.

Market Dependency

Concentration in specific markets can expose Terreno to regional economic downturns, affecting occupancy rates and rental income stability.

Lease Expiry Risk

Long-term leases can limit flexibility to adjust rental rates in response to market changes, potentially impacting future revenue growth.

Terreno Realty Business Overview & Revenue Model

Company Description

{Terreno Realty Corporation and together with its subsidiaries, the Company) acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. All square feet, acres, occupancy and number of properties disclosed in these condensed notes to the consolidated financial statements are unaudited. As of September 30, 2020, the Company owned 219 buildings aggregating approximately 13.1 million square feet, 22 improved land parcels consisting of approximately 85.0 acres and one property under redevelopment expected to contain approximately 0.2 million square feet upon completion. The Company is an internally managed Maryland corporation and elected to be taxed as a real estate investment trust (REIT) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the Code), commencing with its taxable year ended December 31, 2010.}

How the Company Makes Money

Terreno Realty generates revenue primarily through leasing its industrial properties to tenants under long-term leases, which provide a stable income stream. The company earns rental income, which is its key revenue source, and typically benefits from increasing rents due to high demand for logistics space in strategic locations. Additionally, Terreno may realize revenue from property management services and potential property sales that appreciate in value over time. The company's focus on high-occupancy and low-vacancy markets, along with its strategic acquisitions and property developments, contributes to its earnings. Partnerships with logistics and retail companies also enhance tenant diversification, reducing risk and bolstering revenue stability.

Terreno Realty Financial Statement Overview

Summary

Terreno Realty exhibits strong financial health with high profitability and consistent revenue growth. The balance sheet shows low leverage and a strong equity position, while cash flow metrics indicate robust cash generation and efficient operations.

Income Statement

Terreno Realty demonstrates strong profitability with a high gross profit margin of 74.15% and a net profit margin of 59.66% in TTM. Revenue growth is consistent, with a 4.41% increase in the latest period. The EBIT and EBITDA margins are robust at 65.56% and 90.18%, respectively, indicating efficient operations. Overall, the income statement reflects a stable and profitable growth trajectory.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.19, suggesting prudent leverage management. Return on equity is moderate at 6.72%, indicating reasonable profitability relative to shareholder equity. The equity ratio of 79.16% highlights a strong equity base, contributing to financial stability.

Cash Flow

Terreno Realty shows a solid cash flow position with a 22.98% growth in free cash flow, reflecting strong cash generation capabilities. The operating cash flow to net income ratio of 1.96 indicates efficient conversion of income to cash. The free cash flow to net income ratio of 0.76 further supports the company's ability to generate cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	426.00M	382.62M	323.59M	276.21M	221.93M	186.88M
Gross Profit	315.89M	284.53M	244.50M	207.31M	165.68M	137.79M
EBITDA	384.18M	241.87M	206.35M	287.63M	156.00M	141.67M
Net Income	254.14M	184.50M	151.46M	198.01M	61.51M	58.38M
Balance Sheet
Total Assets	4.98B	4.77B	3.90B	3.16B	2.92B	2.14B
Cash, Cash Equivalents and Short-Term Investments	128.37M	18.07M	165.40M	26.39M	204.40M	107.18M
Total Debt	742.39M	823.44M	771.56M	770.82M	720.67M	459.12M
Total Liabilities	1.04B	1.11B	990.05M	934.59M	866.25M	551.64M
Stockholders Equity	3.94B	3.66B	2.91B	2.23B	2.06B	1.59B
Cash Flow
Free Cash Flow	184.87M	186.25M	126.62M	76.60M	80.92M	69.44M
Operating Cash Flow	243.38M	232.69M	179.68M	143.21M	132.21M	101.05M
Investing Cash Flow	-430.43M	-915.48M	-570.39M	-337.66M	-666.44M	-52.09M
Financing Cash Flow	133.43M	534.91M	528.86M	17.73M	631.20M	-53.87M

Terreno Realty Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 55.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRNO, the sentiment is Negative. The current price of 55.94 is below the 20-day moving average (MA) of 57.57, below the 50-day MA of 56.42, and below the 200-day MA of 58.44, indicating a bearish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 40.61 is Neutral, neither overbought nor oversold. The STOCH value of 39.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TRNO.

Terreno Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EGP	77 Outperform	$8.86B	35.82	7.66%	3.46%	11.22%	-3.16%
FR	75 Outperform	$6.86B	24.58	10.33%	3.39%	9.66%	-4.60%
STAG	73 Outperform	$6.77B	28.09	6.89%	4.19%	8.56%	22.20%
TRNO	71 Outperform	$5.78B	22.27	6.85%	3.56%	22.17%	40.80%
LXP	69 Neutral	$2.61B	31.84	4.15%	6.13%	6.64%	210.89%
REXR	67 Neutral	$9.32B	29.27	3.74%	4.34%	13.66%	11.34%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Terreno Realty Corporate Events

Terreno Realty Approves 2025 Equity Incentive Plan

On May 6, 2025, Terreno Realty Corporation held its Annual Meeting of Stockholders in Bellevue, Washington, where the stockholders approved the 2025 Equity Incentive Plan, replacing the 2019 Plan, and authorized the issuance of 2,000,000 shares of common stock. Additionally, the stockholders elected directors, approved executive compensation, and ratified the appointment of Ernst & Young LLP as the independent registered certified public accounting firm for the 2025 fiscal year. These decisions are expected to impact the company’s strategic direction and governance, reinforcing its commitment to aligning executive incentives with shareholder interests and ensuring robust financial oversight.