Terreno Realty Corporation Announces Quarterly Operating, Investment and Capital Markets Activity

Terreno Realty Corporation (NYSE:TRNO), an acquirer, owner and operator of industrial real estate in six major coastal U.S. markets, announced today its operating, investment and capital markets activity for the first quarter of 2024.

Operating

As of March 31, 2024, Terreno Realty Corporation owned 258 buildings aggregating approximately 15.8 million square feet and 45 improved land parcels consisting of approximately 152.4 acres:

• The operating portfolio was 96.2% leased at March 31, 2024 to 572 tenants as compared to 98.5% at December 31, 2023 and 98.1% at March 31, 2023. Occupancy at March 31, 2024 declined primarily due to 123,000 square feet of vacancy (approximately 80bps) at our 620 Division property in Elizabeth, New Jersey, 69,000 square feet of vacancy (approximately 40bps) at our West Avenue 140^th property in San Leandro, California, and 40,000 square feet of acquired vacancy (approximately 30bps) of which 16,000 square feet was subsequently leased with a May 2024 commencement date;

• The same-store portfolio of approximately 14.7 million square feet was 96.2% leased at March 31, 2024 as compared to 98.4% at December 31, 2023 and 98.3% at March 31, 2023;

• The improved land portfolio of 45 parcels totaling approximately 152.4 acres was 94.6% leased at March 31, 2024 as compared to 94.6% at December 31, 2023 and 98.9% at March 31, 2023;

• Cash rents on new and renewed leases totaling approximately 0.7 million square feet and 3.3 acres of improved land commencing during the first quarter increased approximately 47.2% with a tenant retention ratio of 54.7% for the operating portfolio and 82.5% for the improved land portfolio; and

• Terreno Realty Corporation pre-leased 100% of Countyline Corporate Park Phase IV Building 39 in Hialeah, Florida. The ten-year lease is an expansion with an existing tenant who provides turbine engine disassembly, repair, logistics and storage devices, and will commence upon completion of tenant improvements expected in July 2024. Currently under construction, Building 39 of Terreno Realty Corporation’s Countyline Corporate Park is a 178,000 square foot 36-foot clear height rear-load industrial distribution building on 10.9 acres with 58 dock-high and two grade-level loading positions and parking for 156 cars. The building is expected to achieve LEED certification with a total expected investment of $43.8 million and estimated stabilized cap rate of 5.8%.

Investment