Terreno Realty Corp 10-K

Item 9A. Controls And Procedures. Evaluation of Disclosure Controls and Procedures Our management has evaluated, under the supervision and with the participation of our Chief Executive Officer, President and Chief Financial Officer, the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), and has concluded that as of the end of the period covered by this report, our disclosure controls and procedures were effective to give reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and is accumulated and communicated to our management, including our Chief Executive Officer, President and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosures. 54 Table of Contents Management’s Annual Report on Internal Control Over Financial Reporting Terreno Realty Corporation’s management is responsible for establishing and maintaining adequate internal control over financial reporting. This internal control system was designed to provide reasonable assurance to the company’s management and board of directors regarding the preparation and fair presentation of published financial statements. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Terreno Realty Corporation’s management assessed the effectiveness of its internal control over financial reporting as of December 31, 2024. In making this assessment, it used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework (2013 framework). Based on its assessment, management of Terreno Realty Corporation determined that, as of December 31, 2024, the company’s internal control over financial reporting is effective based on those criteria. Terreno Realty Corporation’s independent auditors have issued an audit report on the effectiveness of the company’s internal control over financial reporting, as stated in their report included in this Annual Report on Form 10-K (which expresses an unqualified opinion on the effectiveness of the company’s internal control over financial reporting as of December 31, 2024). 55 Table of Contents Report of Independent Registered Public Accounting Firm To the Shareholders and the Board of Directors of Terreno Realty Corporation Opinion on Internal Control Over Financial Reporting We have audited Terreno Realty Corporation’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Terreno Realty Corporation (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on the COSO criteria. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2024 and 2023, the related consolidated statements of operations, equity and cash flows for each of the three years in the period ended December 31, 2024, and the related notes and financial statement schedule listed in the Index at Item 15 and our report dated February 5, 2025 expressed an unqualified opinion thereon. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Ernst & Young LLP Seattle, Washington February 5, 2025 56 Table of Contents Changes in Internal Control Over Financial Reporting There were no changes in our internal control over financial reporting during the quarter ended December 31, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Item 9B. Other Information. During the three months ended December 31, 2024, none of the Company’s directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted , terminated or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K) . Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. Not applicable. Part III Item 10. Directors, Executive Officers and Corporate Governance. The Company has an insider trading policy governing the purchase, sale and other dispositions of the Company's securities that applies to all of the Company's directors, officers, employees and other covered persons. The Company believes that its insider trading policy is reasonably designed to promote compliance with insider trading laws, rules and regulations, and listing standards applicable to the Company. It is also the policy of the Company to comply with all insider trading laws and regulations. A copy of the Company's insider trading policy is filed as Exhibit 19 to this Annual Report on Form 10-K. The other information required by Item 10 will be contained in a definitive proxy statement for our Annual Meeting of Stockholders, which we anticipate will be filed no later than 120 days after the end of our fiscal year ended December 31, 2024 and is incorporated herein by reference. Item 11. Executive Compensation. The information required by Item 11 will be contained in a definitive proxy statement for our Annual Meeting of Stockholders, which we anticipate will be filed no later than 120 days after the end of our fiscal year ended December 31, 2024 and is incorporated herein by reference. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. The information required by Item 12 will be contained in a definitive proxy statement for our Annual Meeting of Stockholders, which we anticipate will be filed no later than 120 days after the end of our fiscal year ended December 31, 2024 and is incorporated herein by reference. Item 13. Certain Relationships and Related Transactions, and Director Independence. The information required by Item 13 will be contained in a definitive proxy statement for our Annual Meeting of Stockholders, which we anticipate will be filed no later than 120 days after the end of our fiscal year ended December 31, 2024 and is incorporated herein by reference. Item 14. Principal Accountant Fees and Services. The information required by Item 14 will be contained in a definitive proxy statement for our Annual Meeting of Stockholders, which we anticipate will be filed no later than 120 days after the end of our fiscal year ended December 31, 2024 and is incorporated herein by reference. 57 Table of Contents Part IV Item 15. Exhibits and Financial Statement Schedules. (a) 1. and 2. Financial Statements and Schedules The following consolidated financial information is included as a separate section of this Annual Report on Form 10-K beginning on page F-1 as follows: Page Report of Independent Registered Public Accounting Firm (PCAOB ID: 42 ) 59 Consolidated Balance Sheets as of December 31, 2024 and 2023 61 Consolidated Statements of Operations for the years ended December 31, 202 4 , 202 3 and 202 2 62 Consolidated Statements of Equity for the years ended December 31, 2024, 2023 and 2022 63 Consolidated Statements of Cash Flows for the years ended December 31, 2024, 2023 and 2022 64 Notes to Consolidated Financial Statements 65 Schedule III – Real Estate Investments and Accumulated Depreciation 1 All other schedules for which provision is made in the applicable accounting regulations of the Securities and Exchange Commission are not required under the related instructions or are inapplicable, and therefore have been omitted, or the required information is included in the consolidated financial statements and notes thereto. 3. Exhibits The exhibits required to be filed by Item 601 of Regulation S-K are listed in the Exhibit Index at the end of this Annual Report on Form 10-K immediately preceding the signature page, which is incorporated by reference herein. Item 16. Form 10-K Summary. None. 58 Table of Contents Report of Independent Registered Public Accounting Firm To the Shareholders and the Board of Directors of Terreno Realty Corporation Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Terreno Realty Corporation (the Company) as of December 31, 2024 and 2023 the related consolidated statements of operations, equity and cash flows for each of the three years in the period ended December 31, 2024, and the related notes and financial statement schedule listed in the Index at Item 15 (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 5, 2025 expressed an unqualified opinion thereon. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. 59 Table of Contents Valuation of acquired properties Description of the Matter During the year ended December 31, 2024, the Company completed nine real estate acquisitions for a total purchase price of $884 million. The properties were acquired from unrelated third parties. As further discussed in Notes 2 and 4 of the consolidated financial statements, the transactions were accounted for as asset acquisitions. The purchase price for each acquisition was allocated to the individual acquired assets and liabilities based on their relative fair values. Auditing the Company’s real estate acquisitions is complex and required the involvement of a valuation specialist due to the judgments and estimates in determining the fair value of the components of each acquisition. The fair value of the tangible assets is determined by valuing the property as if it were vacant. Land values are derived from current comparative sales values, when available, or management’s estimates of the fair value based on market conditions and the experience of the Company’s management team. Building and improvement values are calculated as replacement cost less depreciation, or management’s estimates of the fair value of these assets using discounted cash flow analyses or similar methods. Fair value of the mortgage loan assumed is based on current market interest rates for similar debt at the date of acquisition. The fair value of the above and below-market leases is based on the present value of the difference between the contractual amounts to be received pursuant to the acquired leases (using a discount rate that reflects the risks associated with the acquired leases) and the Company’s estimate of the market lease rates measured over a period equal to the remaining term of the leases. How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company’s accounting for real estate acquisitions relative to purchase accounting, including controls over the review of the valuation models and related significant assumptions underlying the valuation of the acquired assets and liabilities. To test the purchase price allocations to the assets and liabilities acquired, our audit procedures included, among others, review of the purchase agreements, assessing the methodologies and testing the significant assumptions discussed above used to value the components of the acquired properties. We compared, on a sample basis, land comparative sales values, building replacement cost and depreciation estimates, market rental rates, discount rate and market rental growth rates with external market data, and the incorporation of these assumptions in the cash flow projections and overall valuation conclusions. We also tested the completeness and accuracy of the underlying data. We involved our valuation specialists to assist in the assessment of the methodology utilized by the Company and to test on a sample basis certain of the assumptions used in the valuation of land, building, mortgage loan and above and below market intangibles. /s/ Ernst & Young LLP We have served as the Company‘s auditor since 2012. Seattle, Washington February 5, 2025 60 Table of Contents Item 1. Financial Statements of Terreno Realty Corporation Terreno Realty Corporation Consolidated Balance Sheets (in thousands – except share and per share data) December 31, 2024 December 31, 2023 ASSETS Investments in real estate Land $ 2,586,471 $ 1,995,494 Buildings and improvements 2,107,312 1,561,532 Construction in progress 219,652 343,485 Intangible assets 208,475 147,329 Total investments in properties 5,121,910 4,047,840 Accumulated depreciation and amortization ( 466,553 ) ( 384,480 ) Net investments in properties 4,655,357 3,663,360 Properties held for sale, net 6,258 — Net investments in real estate 4,661,615 3,663,360 Cash and cash equivalents 18,070 165,400 Restricted cash 282 836 Other assets, net 90,189 75,081 Total assets $ 4,770,156 $ 3,904,677 LIABILITIES AND EQUITY Liabilities Credit facility $ 82,000 $ — Term loans payable, net 199,380 199,145 Senior unsecured notes, net 472,953 572,418 Mortgage loan payable, net 69,104 — Security deposits 39,758 32,934 Intangible liabilities, net 116,542 84,718 Dividends payable 48,871 39,052 Accounts payable and other liabilities 79,216 61,783 Total liabilities 1,107,824 990,050 Commitments and contingencies (Note 11) Equity Stockholders’ equity Common stock: $ 0.01 par value, 400,000,000 shares authorized, and 99,238,003 and 87,487,098 shares issued and outstanding at December 31, 2024 and December 31, 2023, respectively. 994 876 Additional paid-in capital 3,597,148 2,849,961 Common stock held in deferred compensation plan: 497,190 and 508,663 shares at December 31, 2024 and December 31, 2023, respectively. ( 31,097 ) ( 31,788 ) Retained earnings 95,287 95,578 Total stockholders’ equity 3,662,332 2,914,627 Total liabilities and equity $ 4,770,156 $ 3,904,677 The accompanying notes are an integral part of these consolidated financial statements. 61 Table of Contents Terreno Realty Corporation Consolidated Statements of Operations (in thousands – except share and per share data) For the Year Ended December 31, 2024 2023 2022 REVENUES Rental revenues and tenant expense reimbursements $ 382,621 $ 323,590 $ 276,212 Total revenues 382,621 323,590 276,212 COSTS AND EXPENSES Property operating expenses 98,090 79,085 68,903 Depreciation and amortization 93,916 73,219 65,763 General and administrative 42,587 37,935 31,192 Acquisition costs and other 72 218 1,465 Total costs and expenses 234,665 190,457 167,323 OTHER INCOME (EXPENSE) Interest and other income 12,083 4,964 809 Interest expense, including amortization ( 20,921 ) ( 24,796 ) ( 23,850 ) Gain on sales of real estate investments 45,379 38,156 112,166 Total other income 36,541 18,324 89,125 Net income 184,497 151,457 198,014 Allocation to participating securities ( 791 ) ( 712 ) ( 854 ) Net income available to common stockholders $ 183,706 $ 150,745 $ 197,160 EARNINGS PER COMMON SHARE - BASIC AND DILUTED: Net income available to common stockholders - basic $ 1.92 $ 1.81 $ 2.61 Net income available to common stockholders - diluted $ 1.92 $ 1.81 $ 2.61 BASIC WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 95,524,549 83,169,028 75,498,107 DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 95,842,137 83,371,099 75,586,480 The accompanying notes are an integral part of these consolidated financial statements. 62 Table of Contents Terreno Realty Corporation Consolidated Statements of Equity (in thousands – except share data) Common Stock Additional Paid- in Capital Common Shares Held in Deferred Compensation Plan Deferred Compensation Plan Retained Earnings Number of Shares Amount Total Balance as of December 31, 2021 75,068,575 $ 752 $ 2,069,604 275,727 $ ( 15,197 ) $ 2,804 $ 2,057,963 Net income — — — — — 198,014 198,014 Issuance of common stock, net of issuance costs of $ 1,557 1,444,156 13 77,281 — — — 77,294 Forfeiture of common stock related to employee awards ( 29,391 ) — — — — — — Common shares acquired related to employee awards ( 14,823 ) — ( 1,045 ) — — — ( 1,045 ) Issuance of restricted stock 136,903 — — — — — — Stock-based compensation — — 10,171 — — — 10,171 Common stock dividends ($ 1.48 per share) — — — — — ( 112,546 ) ( 112,546 ) Deposits to deferred compensation plan, net of withdrawals ( 141,938 ) — 11,265 141,938 ( 11,265 ) — — Balance as of December 31, 2022 76,463,482 765 2,167,276 417,665 ( 26,462 ) 88,272 2,229,851 Net income — — — — — 151,457 151,457 Issuance of common stock, net of issuance costs of $ 5,830 11,012,883 111 665,406 — — — 665,517 Forfeiture of common stock related to employee awards ( 6,989 ) — — — — — — Common shares acquired related to employee awards ( 23,854 ) — ( 1,513 ) — — — ( 1,513 ) Issuance of restricted stock 132,574 — — — — — — Stock-based compensation — — 13,466 — — — 13,466 Common stock dividends ($ 1.70 per share) — — — — — ( 144,151 ) ( 144,151 ) Deposits to deferred compensation plan, net of withdrawals ( 90,998 ) — 5,326 90,998 ( 5,326 ) — — Balance as of December 31, 2023 87,487,098 876 2,849,961 508,663 ( 31,788 ) 95,578 2,914,627 Net income — — — — — 184,497 184,497 Issuance of common stock, net of issuance costs of $ 6,314 11,665,929 118 736,296 — — — 736,414 Forfeiture of common stock related to employee awards ( 16,836 ) — — — — — — Common shares acquired related to employee awards ( 48,041 ) — ( 3,344 ) — — — ( 3,344 ) Issuance of restricted stock 138,380 — — — — — — Stock-based compensation — — 14,926 — — — 14,926 Common stock dividends ($ 1.88 per share) — — — — — ( 184,788 ) ( 184,788 ) Withdrawals from deferred compensation plan 11,473 — ( 691 ) ( 11,473 ) 691 — — Balance as of December 31, 2024 99,238,003 $ 994 $ 3,597,148 497,190 $ ( 31,097 ) $ 95,287 $ 3,662,332 The accompanying notes are an integral part of these consolidated financial statements. 63 Table of Contents Terreno Realty Corporation Consolidated Statements of Cash Flows (in thousands) For the Year Ended December 31, 2024 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 184,497 $ 151,457 $ 198,014 Adjustments to reconcile net income to net cash provided by operating activities Straight-line rents ( 9,306 ) ( 8,469 ) ( 9,353 ) Amortization of lease intangibles ( 17,284 ) ( 13,922 ) ( 16,271 ) Depreciation and amortization 93,916 73,219 65,763 Gain on sales of real estate investments ( 45,379 ) ( 38,156 ) ( 112,166 ) Deferred financing cost and mortgage fair value adjustment amortization 1,762 1,545 1,371 Stock-based compensation 14,926 13,466 10,171 Changes in assets and liabilities Other assets ( 2,331 ) ( 6,599 ) ( 1,368 ) Accounts payable and other liabilities 11,886 7,136 7,049 Net cash provided by operating activities 232,687 179,677 143,210 CASH FLOWS FROM INVESTING ACTIVITIES Cash paid for property acquisitions ( 814,515 ) ( 466,840 ) ( 407,558 ) Proceeds from sales of real estate investments, net 71,899 73,077 162,145 Additions to construction in progress ( 126,428 ) ( 123,570 ) ( 25,638 ) Additions to buildings, improvements and leasing costs ( 46,433 ) ( 53,055 ) ( 66,611 ) Net cash used in investing activities ( 915,477 ) ( 570,388 ) ( 337,662 ) CASH FLOWS FROM FINANCING ACTIVITIES Issuance of common stock 742,728 671,347 78,851 Issuance costs on issuance of common stock ( 5,704 ) ( 5,038 ) ( 1,163 ) Repurchase of common stock related to employee awards ( 3,344 ) ( 1,513 ) ( 1,045 ) Borrowings on credit facility 110,000 82,000 208,000 Payments on credit facility ( 28,000 ) ( 82,000 ) ( 208,000 ) Borrowings on term loans payable — — 100,000 Payments on senior unsecured notes ( 100,000 ) — ( 50,000 ) Payment of deferred financing costs ( 5,805 ) ( 80 ) ( 1,498 ) Dividends paid to common stockholders ( 174,969 ) ( 135,852 ) ( 107,411 ) Net cash provided by financing activities 534,906 528,864 17,734 Net decrease in cash and cash equivalents and restricted cash ( 147,884 ) 138,153 ( 176,718 ) Cash and cash equivalents and restricted cash at beginning of year 166,236 28,083 204,801 Cash and cash equivalents and restricted cash at end of year $ 18,352 $ 166,236 $ 28,083 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid for interest, net of capitalized interest $ 20,898 $ 31,713 $ 25,219 Supplemental disclosures of non-cash transactions Accounts payable related to capital improvements 34,509 26,912 18,158 Non-cash issuance of common stock to the deferred compensation plan 691 ( 5,326 ) ( 11,265 ) Lease liability arising from recognition of right-of-use asset 2,264 — 1,192 Reconciliation of cash paid for property acquisitions Acquisition of properties $ 937,908 $ 512,531 $ 422,298 Assumption of mortgage loans payable ( 72,879 ) — — Unamortized mortgage fair value adjustment 3,650 — — Assumption of other assets and liabilities ( 54,164 ) ( 45,691 ) ( 14,740 ) Net cash paid for property acquisitions $ 814,515 $ 466,840 $ 407,558 The accompanying notes are an integral part of these consolidated financial statements. 64 Table of Contents Terreno Realty Corporation Notes to Consolidated Financial Statements Note 1. Organization Terreno Realty Corporation (“Terreno”, and together with its subsidiaries, the “Company”) acquires, owns and operates industrial real estate in six major coastal U.S. markets: New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle, and Washington, D.C. All square feet, acres, occupancy and number of properties disclosed in these notes to the consolidated financial statements are unaudited. As of December 31, 2024, the Company owned 299 buildings (including one building held for sale) aggregating approximately 19.3 million square feet, 47 improved land parcels consisting of approximately 150.6 acres, six properties under development or redevelopment and approximately 22.4 acres of land for future development. 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. Note 2. Significant Accounting Policies Basis of Presentation. The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The accompanying consolidated financial statements include all of the Company’s accounts and its subsidiaries and all intercompany balances and transactions have been eliminated in consolidation. Use of Estimates. The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. Capitalization of Costs. The Company capitalizes costs directly related to the development, redevelopment, renovation and expansion of its investment in real estate. Costs associated with such projects are capitalized as incurred. If the project is abandoned, these costs are expensed during the period in which the development, redevelopment, renovation or expansion project is abandoned. Costs considered for capitalization include, but are not limited to, construction costs, interest, real estate taxes and insurance, if appropriate. These costs are capitalized only during the period in which activities necessary to ready an asset for its intended use are in progress. In the event that the activities to ready the asset for its intended use are suspended, the capitalization period will cease until such activities are resumed. Costs incurred for maintaining and repairing properties, which do not extend their useful lives, are expensed as incurred. Interest is capitalized based on actual capital expenditures from the period when development, redevelopment, renovation or expansion commences until the asset is ready for its intended use, at the weighted average borrowing rate during the period. Investments in Real Estate. Investments in real estate, including tenant improvements, leasehold improvements and leasing costs, are stated at cost, less accumulated depreciation, unless circumstances indicate that the cost cannot be recovered, in which case, an adjustment to the carrying value of the property is made to reduce it to its estimated fair value. The Company also reviews the impact of above and below-market leases, in-place leases and lease origination costs for acquisitions and records an intangible asset or liability accordingly. Impairment. Carrying values for financial reporting purposes are reviewed for impairment on a property-by-property basis whenever events or changes in circumstances indicate that the carrying value of a property may not be fully recoverable. Examples of such events or changes in circumstances may include classifying an asset to be held for sale, changing the intended hold period or when an asset remains vacant significantly longer than expected. The intended use of an asset either held for sale or held for use can significantly impact how impairment is measured. If an asset is intended to be held for the long-term, the recoverability is based on the undiscounted future cash flows. If the asset carrying value is not supported on an undiscounted future cash flow basis, then the asset carrying value is measured against the lower of cost or the present value of expected cash flows over the expected hold period. An impairment charge to earnings is recognized for the excess of the asset’s carrying value over the lower of cost or the present values of expected cash flows over the expected hold period. If an asset is intended to be sold, impairment is determined using the estimated fair value less costs to sell. The estimation of expected future net cash flows is inherently uncertain and relies on assumptions, among other things, regarding current and future economic and market conditions and the availability of capital. The Company determines the estimated fair values based on its assumptions regarding 65 Table of Contents rental rates, lease-up and holding periods, as well as sales prices. When available, current market information is used to determine capitalization and rental growth rates. If available, current comparative sales values may also be used to establish fair value. When market information is not readily available, the inputs are based on the Company’s understanding of market conditions and the experience of the Company’s management team. Actual results could differ significantly from the Company’s estimates. The discount rates used in the fair value estimates represent a rate commensurate with the indicated holding period with a premium layered on for risk. There were no impairment charges recorded to the carrying values of the Company’s properties during the years ended December 31, 2024, 2023 or 2022. Property Acquisitions. In accordance with Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the integrated set of assets and activities is not considered a business. To be a business, the set of acquired activities and assets must include inputs and one or more substantive processes that together contribute to the ability to create outputs. The Company has determined that its real estate property acquisitions will generally be accounted for as asset acquisitions under the clarified definition. Upon acquisition of a property the Company estimates the fair value of acquired tangible assets (consisting generally of land, buildings and improvements) and intangible assets and liabilities (consisting generally of the above and below-market leases and the origination value of all in-place leases). The Company determines fair values using Level 3 inputs such as replacement cost, estimated cash flow projections and other valuation techniques and applying appropriate discount and capitalization rates based on available market information. Mortgage loans assumed in connection with acquisitions are recorded at their fair value using current market interest rates for similar debt at the date of acquisition. Acquisition-related costs associated with asset acquisitions are capitalized to individual tangible and intangible assets and liabilities assumed on a relative fair value basis and acquisition-related costs associated with business combinations are expensed as incurred. The fair value of the tangible assets is determined by valuing the property as if it were vacant. Land values are derived from current comparative sales values, when available, or management’s estimates of the fair value based on market conditions and the experience of the Company’s management team. Building and improvement values are calculated as replacement cost less depreciation, or management’s estimates of the fair value of these assets using discounted cash flow analyses or similar methods. The fair value of the above and below-market leases is based on the present value of the difference between the contractual amounts to be received pursuant to the acquired leases (using a discount rate that reflects the risks associated with the acquired leases) and the Company’s estimate of the market lease rates measured over a period equal to the remaining term of the leases plus the term of any below-market fixed rate renewal options. The above and below-market lease values are amortized to rental revenues over the remaining initial term plus the term of any below-market fixed rate renewal options that are considered bargain renewal options of the respective leases. The total net impact to rental revenues due to the amortization of above and below-market leases was a net increase of approximately $ 17.3 million, $ 13.9 million and $ 16.3 million for the years ended December 31, 2024, 2023 and 2022, respectively. The origination value of in-place leases is based on costs to execute similar leases, including commissions and other related costs. The origination value of in-place leases also includes real estate taxes, insurance and an estimate of lost rental revenue at market rates during the estimated time required to lease up the property from vacant to the occupancy level at the date of acquisition. The remaining weighted average lease term related to these intangible assets and liabilities as of December 31, 2024 was 7.0 years. As of December 31, 2024 and 2023, the Company’s intangible assets and liabilities, including properties held for sale (if any), consisted of the following (dollars in thousands): December 31, 2024 December 31, 2023 Gross Accumulated Amortization Net Gross Accumulated Amortization Net In-place leases $ 203,386 $ ( 111,927 ) $ 91,459 $ 143,444 $ ( 93,476 ) $ 49,968 Above-market leases 5,089 ( 3,723 ) 1,366 3,885 ( 3,463 ) 422 Below-market leases ( 185,995 ) 69,453 ( 116,542 ) ( 137,047 ) 52,329 ( 84,718 ) Total $ 22,480 $ ( 46,197 ) $ ( 23,717 ) $ 10,282 $ ( 44,610 ) $ ( 34,328 ) Projected net amortization of the intangible assets and liabilities for the next five years and thereafter as of December 31, 2024 is as follows (dollars in thousands): 66 Table of Contents 2025 $ 3,339 2026 807 2027 ( 1,039 ) 2028 ( 1,626 ) 2029 ( 2,947 ) Thereafter ( 22,251 ) Total $ ( 23,717 ) Depreciation and Useful Lives of Real Estate and Intangible Assets. Depreciation and amortization are computed on a straight-line basis over the estimated useful lives of the related assets or liabilities. The following table reflects the standard depreciable lives typically used to compute depreciation and amortization. However, such depreciable lives may be different based on the estimated useful life of such assets or liabilities. Description Standard Depreciable Life Land Not depreciated Building 40 years Building Improvements 5 - 40 years Tenant Improvements Shorter of lease term or useful life Leasing Costs Lease term In-place Leases Lease term Above/Below-Market Leases Lease term Held for Sale Assets. The Company considers a property to be held for sale when it meets the criteria established under Accounting Standards Codification (“ASC”) 360, Property, Plant and Equipment (See “Note 5 - Held for Sale/Disposed Assets”). Properties held for sale are reported at the lower of the carrying amount or fair value less estimated costs to sell and are not depreciated while they are held for sale. Cash and Cash Equivalents. Cash and cash equivalents consists of cash held in a major banking institution and other highly liquid short-term investments with original maturities of three months or less. Cash equivalents are generally invested in U.S. government securities, government agency securities or money market accounts. Restricted Cash. Restricted cash includes cash held in escrow in connection with property acquisitions and reserves for certain capital improvements, leasing, interest and real estate tax and insurance payments as required by certain mortgage loan obligations. The following summarizes the reconciliation of cash and cash equivalents and restricted cash as presented in the accompanying consolidated statements of cash flows (dollars in thousands): For the Year Ended December 31, 2024 2023 2022 Beginning Cash and cash equivalents at beginning of year $ 165,400 $ 26,393 $ 204,404 Restricted cash 836 1,690 397 Cash and cash equivalents and restricted cash 166,236 28,083 204,801 Ending Cash and cash equivalents at end of year 18,070 165,400 26,393 Restricted cash 282 836 1,690 Cash and cash equivalents and restricted cash 18,352 166,236 28,083 Net (decrease) increase in cash and cash equivalents and restricted cash $ ( 147,884 ) $ 138,153 $ ( 176,718 ) Revenue Recognition. The Company records rental revenue from operating leases on a straight-line basis over the term of the leases and maintains an allowance for estimated losses that may result from the inability of its tenants to make required payments. If tenants fail to make contractual lease payments that are greater than the Company’s allowance for doubtful 67 Table of Contents accounts, security deposits and letters of credit, then the Company may have to recognize additional doubtful account charges in future periods. The Company monitors the liquidity and creditworthiness of its tenants on an ongoing basis by reviewing their financial condition periodically as appropriate. Each period the Company reviews its outstanding accounts receivable, including straight-line rents, for doubtful accounts and provides allowances as needed. The Company also records lease termination fees when a tenant has executed a definitive termination agreement with the Company and the payment of the termination fee is not subject to any conditions that must be met or waived before the fee is due to the Company. If a tenant remains in the leased space following the execution of a definitive termination agreement, the applicable termination will be deferred and recognized over the term of such tenant’s occupancy. Tenant expense reimbursement income includes payments and amounts due from tenants pursuant to their leases for real estate taxes, insurance and other recoverable property operating expenses and is recognized as revenues during the same period the related expenses are incurred. As of December 31, 2024 and 2023, approximately $ 62.9 million and $ 56.1 million, respectively, of straight-line rent and accounts receivable, net of allowances of approximately $ 3.4 million and $ 1.2 million as of December 31, 2024 and 2023, respectively, were included as a component of other assets in the accompanying consolidated balance sheets. Deferred Financing Costs. Costs incurred in connection with financings are capitalized and amortized to interest expense using the effective interest method over the term of the related loan. Deferred financing costs associated with the Company’s revolving credit facility are classified as an asset, as a component of other assets in the accompanying consolidated balance sheets, and deferred financing costs associated with debt liabilities are reported as a direct deduction from the carrying amount of the debt liability in the accompanying consolidated balance sheets. Deferred financing costs related to the revolving credit facility and debt liabilities are carried at cost, net of deferred financing costs and net of accumulated amortization in the aggregate of approximately $ 15.2 million and $ 13.5 million as of December 31, 2024 and 2023, respectively. Mortgage Fair Value Adjustment. Mortgage fair value adjustment represents the excess of the principal debt assumed over the fair value of debt assumed in connection with property acquisitions. The adjustment is being amortized to interest expense over the term of the related debt instrument using the effective interest method. As of December 31, 2024, the net unamortized fair value mortgage adjustment was approximately $ 3.6 million and were included as a component of mortgage loans payable in the accompanying consolidated balance sheets. Income Taxes. The Company elected to be taxed as a REIT under the Code and operates as such beginning with its taxable year ended December 31, 2010. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its annual REIT taxable income to its stockholders (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). As a REIT, the Company generally will not be subject to federal income tax to the extent it distributes qualifying dividends to its stockholders. If it fails to qualify as a REIT in any taxable year, it will be subject to federal income tax on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost unless the IRS grants it relief under certain statutory provisions. Such an event could materially adversely affect the Company’s net income and net cash available for distribution to stockholders. However, the Company believes it is organized and operates in such a manner as to qualify for treatment as a REIT. ASC 740-10, Income Taxes (“ASC 740-10”) , provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. ASC 740-10 requires the evaluation of tax positions taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold are recorded as a tax expense in the current year. As of December 31, 2024 and 2023, the Company did not have any unrecognized tax benefits and does not believe that there will be any material changes in unrecognized tax positions over the next 12 months. The Company’s tax returns are subject to examination by federal, state and local tax jurisdictions, which as of December 31, 2024, include years 2020 to 2023 for federal purposes. Stock-Based Compensation and Other Long-Term Incentive Compensation. The Company follows the provisions of ASC 718, Compensation-Stock Compensation, to account for its stock-based compensation plan, which requires that the compensation cost relating to stock-based payment transactions be recognized in the financial statements and that the cost be measured on the fair value of the equity or liability instruments issued. The Company’s 2019 Equity Incentive Plan (the “2019 Plan”) provides for the grant of restricted stock awards, performance share awards, unrestricted shares or any combination of the foregoing. Stock-based compensation is recognized as a general and administrative expense in the accompanying consolidated statements of operations and measured at the fair value of the award on the date of grant. The Company estimates the forfeiture rate based on historical experience as well as expected behavior. The amount of the expense may be subject to adjustment in future periods depending on the specific characteristics of the stock-based award. 68 Table of Contents In addition, the Company has awarded long-term incentive target awards (the “Performance Share awards”) under its Amended and Restated Long-Term Incentive Plan (as amended and restated, the “Amended LTIP”), which the Company amended and restated on January 8, 2019, to its executives that may be payable in shares of the Company’s common stock after the conclusion of each pre-established performance measurement period, which is generally three years . The amount that may be earned is variable depending on the relative total shareholder return of the Company’s common stock as compared to the total shareholder return of the MSCI U.S. REIT Index (RMS) and the FTSE Nareit Equity Industrial Index over the pre-established performance measurement period. Under the Amended LTIP, each participant’s Performance Share award granted will be expressed as a number of shares of common stock and settled in shares of common stock. The grant date fair value of the Performance Share awards will be determined using a Monte Carlo simulation model on the date of grant and recognized on a straight-line basis over the performance period. Fair Value of Financial Instruments . ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) (See “Note 8 - Fair Value Measurements”), defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also provides guidance for using fair value to measure financial assets and liabilities. ASC 820 requires disclosure of the level within the fair value hierarchy in which the fair value measurements fall, including measurements using quoted prices in active markets for identical assets or liabilities (Level 1), quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active (Level 2), and significant valuation assumptions that are not readily observable in the market (Level 3). Segment Disclosure. ASC 280, Segment Reporting , establishes standards for reporting financial and descriptive information about an enterprise’s reportable segments. The Company has determined that it has one reportable segment, with activities related to investing in real estate. The Company acquires, owns and operates industrial real estate in six major coastal U.S. markets. The Company invests in several types of industrial real estate, including warehouse/distribution, flex, transshipment, and improved land. The Company’s assets engage in leasing activities that generate revenues and incur operating expenses. Lease terms typically range from three to ten years . As each of the Company’s assets has similar economic characteristics, the assets have been aggregated into one reportable segment. The accounting policies for the reportable segment are the same as those described above. The Chief Operating Decision Maker (“CODM”) assesses segment performance and decides how to allocate resources based on net income, which is reported on the Consolidated Statements of Operations. The measure of segment assets is reported on the Consolidated Balance Sheets as total assets. The CODM is the CEO and President. The CODM reviews net income on an individual asset level and on a consolidated level. The CODM uses this information to monitor budget versus actual results, to evaluate returns on assets and to determine how to reinvest profits. The revenue, costs and expenses, and net income for the reportable segment are the same as those presented on the Consolidated Statements of Operations. New Accounting Standards. In November 2023, the Financial Accounting Standards Board issued ASU 2023-07, Segment Reporting (Topics 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 improves current segment disclosures and requires additional disclosures of segment expenses. The Company adopted the provisions of ASU 2023-07 as of December 31, 2024 which did not materially impact the Company’s consolidated financial statements, and the required segment disclosures are included above. Note 3. Concentration of Credit Risk Financial instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash and cash equivalents. The Company may maintain deposits in federally insured financial institutions in excess of federally insured limits. However, the Company’s management believes the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. As of December 31, 2024, the Company owned 65 buildings aggregating approximately 3.8 million square feet and 13 improved land parcels consisting of approximately 62.3 acres located in New York City/Northern New Jersey, which accounted for a combined percentage of approximately 27.9 % of its annualized base rent. Such annualized base rent is based on contractual monthly base rent per the leases, for all buildings and improved land parcels, excluding any partial or full rent abatements as of December 31, 2024, multiplied by 12. 69 Table of Contents Other real estate companies compete with the Company in its real estate markets. This results in competition for tenants to occupy space. The existence of competing properties could have a material impact on the Company’s ability to lease space and on the level of rent that can be achieved. The Company had no tenant that accounted for greater than 10% of the Company's annualized base rent for the years ended 2024, 2023 and 2022. Note 4. Investments in Real Estate During the year ended December 31, 2024, the Company acquired eight industrial properties and one portfolio of industrial properties. This included the assumption of a mortgage loan with a total contractual principal amount of approximately $ 72.9 million which bears interest at a contractual fixed interest rate of 3.9 % and matures in March 2028. Upon acquisition, this mortgage loan was recorded at fair value in the amount of $ 69.2 million using an effective interest rate of 5.6 %. The unamortized fair value adjustment was approximately $ 3.6 million as of December 31, 2024. The mortgage loan payable is secured by a property and requires a monthly interest payment until maturity and is generally non-recourse. The total aggregate initial investment, including acquisition costs, was approximately $ 937.9 million, of which $ 523.2 million was recorded to land, $ 356.3 million to buildings and improvements, and $ 58.4 million to intangible assets. Additionally, the Company assumed $ 54.3 million in liabilities. The following table sets forth the wholly-owned industrial properties the Company acquired during the year ended December 31, 2024: Property Name Location Acquisition Date Number of Buildings Square Feet Purchase Price (in thousands) 1 13045 SE 32nd Street Bellevue, WA January 5, 2024 1 16,000 $ 6,500 181 Lombardy Brooklyn, NY March 22, 2024 1 24,000 12,000 Fleet Alexandria, VA April 15, 2024 4 357,000 84,300 Multi-market portfolio of industrial properties 3 Various May 2, 2024 28 1,237,600 364,500 3000 V Street NE Washington, D.C. August 1, 2024 1 26,000 7,600 48-29 31st Pl Queens, NY December 5, 2024 1 17,000 7,600 280 Richards Street 2 Brooklyn, NY December 11, 2024 1 312,000 156,300 Doral Air Logistics Doral, FL December 27, 2024 3 495,000 195,600 49-15 Maspeth Avenue Queens, NY December 27, 2024 1 33,000 50,100 Total/Weighted Average 41 2,517,600 $ 884,500 1 Excludes intangible liabilities and unamortized mortgage fair value adjustments, if any. The total aggregate initial investment was approximately $ 937.9 million, including $ 11.2 million in capitalized closing costs and acquisition costs and $ 49.5 million in assumed intangible liabilities, $ 3.7 million in assumed unamortized fair value adjustment and $ 3.6 million in other credits related to near term capital expenditures, free rent and tenant improvements at multiple properties. 2 280 Richards Street is encumbered by a mortgage loan payable with a total contractual principal amount of approximately $ 72.9 million which bears interest at a contractual fixed interest rate of 3.9 % and matures in March 2028. The mortgage was assumed in an acquisition and was recorded at fair value in the amount of $ 69.2 million using an effective interest rate of 5.6 %. The unamortized fair value adjustment as of December 31, 2024 was approximately $ 3.6 million. 3 Includes 28 properties, including 12 buildings located in New York City aggregating approximately 481,500 square feet, 6 buildings located in Northern New Jersey aggregating approximately 343,200 square feet, 3 buildings located in the San Francisco Bay Area aggregating approximately 237,900 square feet and 7 buildings located in Los Angeles aggregating approximately 175,000 square feet. The Company recorded revenues and net income for the year ended December 31, 2024 of approximately $ 26.0 million and $ 8.2 million, respectively, related to the 2024 acquisitions. During the year ended December 31, 2023, the Company acquired seven industrial properties with a total initial investment, including acquisition costs, of approximately $ 512.5 million, of which $ 325.8 million was recorded to land, $ 156.6 million to buildings and improvements, and $ 30.1 million to intangible assets. Additionally, the Company assumed $ 46.3 million in liabilities. 70 Table of Contents The following table sets forth the wholly-owned industrial properties the Company acquired during the year ended December 31, 2023: Property Name Location Acquisition Date Number of Buildings Square Feet Improved Land Acreage Purchase Price (in thousands) 1 Countyline Phase IV 2 Hialeah, FL February 23, 2023 — — 121.0 $ 173,600 9th Street Long Island City, NY March 6, 2023 1 45,000 — 23,000 Morton Newark, CA March 30, 2023 4 603,000 — 186,000 25th Place NE Washington DC May 23, 2023 1 33,000 — 13,400 East Garry Avenue 3 Santa Ana, CA September 6, 2023 — — 4.9 14,800 Santa Fe Redondo Beach, CA October 10, 2023 2 112,000 — 45,700 Van Dyke Red Hook, Brooklyn, NY October 11, 2023 1 96,000 — 27,500 Total/Weighted Average 9 889,000 125.9 $ 484,000 1 Excludes intangible liabilities. The total aggregate initial investment was approximately $ 512.5 million, including $ 6.1 million in capitalized closing costs and acquisition costs and $ 42.9 million in assumed intangible liabilities and $ 20.5 million in other credits related to near term capital expenditures, free rent and tenant improvements at various properties. 2 Countyline Phase IV is a 121 -acre project entitled for 2.2 million square feet of industrial distribution buildings located in Miami’s Countyline Corporate Park (“Countyline”), immediately adjacent to the Company’s seven buildings within Countyline. Countyline Phase IV, a landfill redevelopment adjacent to Florida’s Turnpike and the southern terminus of I-75, is expected to contain ten LEED-certified industrial distribution buildings at completion. 3 East Garry Avenue is a 4.9 -acre property that was placed into redevelopment upon acquisition. The property is expected to contain one approximately 92,000 square foot LEED-certified industrial distribution building at completion. The Company recorded revenues and net income for the year ended December 31, 2023 of approximately $ 14.8 million and $ 4.9 million, respectively, related to the 2023 acquisitions. The above assets and liabilities were recorded at fair value, which uses Level 3 inputs. The properties were acquired from unrelated third parties using existing cash on hand, proceeds from property sales, the issuance of common stock and borrowings on the revolving credit facility. 71 Table of Contents As of December 31, 2024, the Company had six properties under development or redevelopment that, upon completion, will consist of nine buildings aggregating approximately 0.9 million square feet. Additionally, the Company owned approximately 22.4 acres of land for future development that, upon completion, will consist of two buildings aggregating approximately 0.4 million square feet. The following table summarizes certain information with respect to the properties under development or redevelopment and the land for future development as of December 31, 2024: Property Name Location Total Expected Investment (in thousands) 1 (unaudited) Estimated Post-Development Square Feet Properties under development or redevelopment: Countyline Phase IV 2 Countyline Building 32 Hialeah, FL $ 40,100 164,300 Countyline Building 33 Hialeah, FL 39,000 158,000 Countyline Building 34 Hialeah, FL 55,900 219,900 Paterson Plank III Carlstadt, NJ 35,200 47,300 East Garry Avenue Santa Ana, CA 41,000 91,500 139th Street 3 Gardena, CA 104,600 223,000 Total $ 315,800 904,000 Land entitled for future development: Countyline Phase IV 2 Countyline Phase IV Land Hialeah, FL 117,100 433,200 Total $ 117,100 433,200 1 Excludes below-market lease adjustments recorded at acquisition. Total expected investment for the properties include the initial purchase price, buyer’s due diligence and closing costs, estimated near-term redevelopment expenditures, capitalized interest and leasing costs necessary to achieve stabilization. 2 Collectively, “Countyline Phase IV”, a 121 -acre project entitled for 2.2 million square feet of industrial distribution buildings located in Countyline, immediately adjacent to the Company’s seven buildings within Countyline. Countyline Phase IV, a landfill redevelopment adjacent to Florida’s Turnpike and the southern terminus of I-75, is expected to contain ten LEED-certified industrial distribution buildings at completion. 3 This redevelopment property was initially acquired in 2017 for a total initial investment, including closing costs and acquisition costs, of approximately $ 39.9 million. The property was in the operating portfolio until January 2024 when redevelopment commenced. The amount spent to date includes the total initial investment and capital expenditures incurred prior to redevelopment and excludes accumulated depreciation recorded since acquisition. The Company expects a total incremental investment of approximately $ 64.0 million. During 2024, the Company completed development or redevelopment of six properties. The following table summarizes certain information with respect to the completed development or redevelopment properties as of December 31, 2024: Property Name Location Total Expected Investment (in thousands) 1 (unaudited) Post-Development Square Feet Post-Development Acreage Completion Quarter Countyline Building 31 Hialeah, FL $ 42,100 161,787 — Q4 2024 Countyline Building 38 Hialeah, FL 88,500 506,215 — Q2 2024 Countyline Building 39 Hialeah, FL 43,800 178,201 — Q3 2024 Countyline Building 40 Hialeah, FL 43,800 186,107 — Q2 2024 147th Street Hawthorne, CA 15,600 31,378 — Q4 2024 Maple III Rancho Dominguez, CA 28,300 — 2.8 Q4 2024 Total/Weighted Average $ 262,100 1,063,688 2.8 1 Total investment for the properties includes the initial purchase price, buyer’s due diligence and closing costs, redevelopment expenditures, capitalized interest and leasing costs necessary to achieve stabilization. 72 Table of Contents The Company capitalized interest associated with development, redevelopment and expansion activities of approximately $ 11.0 million, $ 8.5 million and $ 2.6 million during the years ended December 31, 2024, 2023 and 2022, respectively. Note 5. Held for Sale/Disposed Assets As of December 31, 2024, the Company had entered into an agreement with a third-party purchaser to sell one building located in the San Francisco Bay Area market for a sales price of approximately $ 16.9 million (net book value of approximately $ 6.3 million). The sale of the property was subject to various closing conditions. During the year ended December 31, 2024, the Company sold four properties for a total aggregate sales price of approximately $ 74.4 million, resulting in a total aggregate gain of approximately $ 45.4 million. The following table sets forth the markets in which the industrial properties were sold during 2024: Market Number of Properties Total Sales Price Total Gain New York City/Northern New Jersey 1 $ 29,800 $ 17,200 Miami 1 20,600 14,500 San Francisco Bay Area 1 13,000 8,000 Seattle 1 11,000 5,700 Total 4 $ 74,400 $ 45,400 During the year ended December 31, 2023, the Company sold four properties for a total aggregate sales price of approximately $ 77.1 million, resulting in a total aggregate gain of approximately $ 38.2 million. The following table sets forth the markets in which the industrial properties were sold during 2023: Market Number of Properties Total Sales Price Total Gain New York City/Northern New Jersey 2 $ 43,200 $ 21,900 Los Angeles 1 15,900 6,600 Washington, D.C. 1 18,000 9,700 Total 4 $ 77,100 $ 38,200 During the year ended December 31, 2022, the Company sold four properties for a total aggregate sales price of approximately $ 168.3 million, resulting in a total aggregate gain of approximately $ 112.2 million. The following table sets forth the markets in which the industrial properties were sold during 2022: Market Number of Properties Total Sales Price Total Gain New York City/Northern New Jersey 3 $ 159,700 $ 107,100 Seattle 1 8,600 5,100 Total 4 $ 168,300 $ 112,200 Note 6. Debt The following table summarizes the components of the Company’s indebtedness as of December 31, 2024 and 2023 (dollars in thousands): 73 Table of Contents December 31, 2024 December 31, 2023 Margin Above SOFR Interest Rate 1 Contractual Maturity Date Unsecured Debt: Credit Facility $ 82,000 $ — 1.1 % 2 5.4 % 1/15/2029 5 -Year Term Loan 100,000 100,000 1.3 % 2 5.6 % 1/15/2027 5 -Year Term Loan 100,000 100,000 1.3 % 2 5.8 % 1/15/2028 $ 100 M 7 -Year Unsecured 3, 4 — 100,000 n/a 3.8 % 7/14/2024 $ 50 M 10 -Year Unsecured 3 50,000 50,000 n/a 4.0 % 7/7/2026 $ 50 M 12 -Year Unsecured 3 50,000 50,000 n/a 4.7 % 10/31/2027 $ 100 M 7 -Year Unsecured 3 100,000 100,000 n/a 2.4 % 7/15/2028 $ 100 M 10 -Year Unsecured 3 100,000 100,000 n/a 3.1 % 12/3/2029 $ 125 M 9 -Year Unsecured 3 125,000 125,000 n/a 2.4 % 8/17/2030 $ 50 M 10 -Year Unsecured 3 50,000 50,000 n/a 2.8 % 7/15/2031 Total Unsecured Debt 757,000 775,000 Secured Debt: 280 Richards Street 72,879 — n/a 3.9 % 3/1/2028 Total Secured Debt 72,879 — Total Unsecured and Secured Debt 829,879 775,000 Less: Unamortized fair value adjustment and debt issuance costs ( 6,442 ) ( 3,437 ) Total $ 823,437 $ 771,563 1 Reflects the contractual interest rate under the terms of each loan as of December 31, 2024. Excludes the effects of unamortized debt issuance costs. 2 The interest rates on these loans are comprised of the Secured Overnight Financing Rate (“SOFR”) plus a SOFR margin. The SOFR margins will range from 1.10 % to 1.55 % ( 1.10 % as of December 31, 2024) for the revolving credit facility and 1.25 % to 1.75 % ( 1.25 % as of December 31, 2024) for the term loans, depending on the ratio of the Company’s outstanding consolidated indebtedness to the value of the Company’s consolidated gross asset value and includes a 10 basis points SOFR credit adjustment. 3 Collectively, the “Senior Unsecured Notes”. 4 In July 2024, the Company repaid the $ 100.0 million tranche of its 7 -year Senior Unsecured Notes using existing cash on hand. The notes bore interest at 3.8 % and had an original maturity date of July 14, 2024. On September 24, 2024, the Company entered into the Third Amendment to the Sixth Amended and Restated Senior Credit Agreement (as amended, the “Amended Facility”) in order to, among other things, (i) increase the borrowing capacity of the revolving credit facility by $ 200.0 million to $ 600.0 million and (ii) extend the maturity date of the revolving credit facility from August 2025 to January 2029. The Amended Facility consists of a $ 600.0 million revolving credit facility that matures in January 2029, a $ 100.0 million term loan that matures in January 2027 and a $ 100.0 million term loan that matures in January 2028. As of December 31, 2024, there were $ 82.0 million of borrowings outstanding on the revolving credit facility and $ 200.0 million of borrowings outstanding on the term loans. As of December 31, 2023, there were no borrowings outstanding on the revolving credit facility and $ 200.0 million of borrowings outstanding on the term loans. The aggregate amount of the Amended Facility may be increased by up to an additional $ 450.0 million to a maximum aggregate amount not to exceed $ 1.25 billion, subject to the approval of the administrative agent and the identification of lenders willing to make available additional amounts. Outstanding borrowings under the Amended Facility are limited to the lesser of (i) the sum of the $ 600.0 million revolving credit facility, the $ 100.0 million term loan maturing in January 2027 and the $ 100.0 million term loan maturing in January 2028, or (ii) 60.0 % of the value of the unencumbered properties. Interest on the Amended Facility, including the term loans, is generally to be paid based upon, at the Company’s option, either (i) SOFR plus the applicable SOFR margin or (ii) the applicable base rate, which is the greatest of the administrative agent’s prime rate, 0.50 % above the federal funds effective rate, thirty-day SOFR plus the applicable SOFR margin for SOFR rate loans under the Amended Facility plus 1.25 %, or 1.25 % per annum. The applicable SOFR margin will range from 1.10 % to 1.55 % ( 1.10 % as of December 31, 2024) for the revolving credit facility and 1.25 % to 1.75 % ( 1.25 % as of December 31, 2024) for the term loans, depending on the ratio of the Company’s outstanding consolidated indebtedness to the value of the Company’s 74 Table of Contents consolidated gross asset value and includes a 10 basis points SOFR credit adjustment. The Amended Facility requires quarterly payments of an annual facility fee in an amount ranging from 0.15 % to 0.30 %, depending on the ratio of the Company’s outstanding consolidated indebtedness to the value of the Company’s consolidated gross asset value. The Amended Facility and the Senior Unsecured Notes are guaranteed by the Company and by substantially all of the current and to-be-formed subsidiaries of the Company that own an unencumbered property. The Amended Facility and the Senior Unsecured Notes are not secured by the Company’s properties or by interests in the subsidiaries that hold such properties. The Amended Facility and the Senior Unsecured Notes include a series of financial and other covenants with which the Company must comply. The Company was in compliance with the covenants under the Amended Facility and the Senior Unsecured Notes as of December 31, 2024 and 2023. As of December 31, 2024, the Company had one mortgage loan payable totaling approximately $ 69.1 million, net of deferred financing costs of $ 0.2 million and unamortized fair value adjustment of approximately $ 3.6 million, which bore interest at a weighted average fixed annual rate of 3.9 %. The mortgage loan payable is collateralized by one property, is non-recourse and requires monthly interest payments until it matures in March 2028. As of December 31, 2024 the total gross book value of the property securing the debt was approximately $ 179.3 million. As of December 31, 2023, the Company had no mortgage loans. The scheduled principal payments of the Company’s debt as of December 31, 2024 were as follows (dollars in thousands): Credit Facility Term Loan Senior Unsecured Notes Mortgage Loan Payable Total Debt 2025 $ — $ — $ — $ — $ — 2026 — — 50,000 — 50,000 2027 — 100,000 50,000 — 150,000 2028 — 100,000 100,000 72,879 272,879 2029 82,000 — 100,000 — 182,000 Thereafter — — 175,000 — 175,000 Subtotal 82,000 200,000 475,000 72,879 829,879 Unamortized fair value adjustment — — — ( 3,590 ) ( 3,590 ) Total Debt 82,000 200,000 475,000 69,289 826,289 Deferred financing costs, net — ( 620 ) ( 2,047 ) ( 185 ) ( 2,852 ) Total Debt, net $ 82,000 $ 199,380 $ 472,953 $ 69,104 $ 823,437 Weighted average interest rate 5.4 % 5.7 % 3.0 % 3.9 % 4.0 % Note 7. Leasing The following is a schedule of minimum future cash rentals on tenant operating leases in effect as of December 31, 2024. The schedule does not reflect future rental revenues from the renewal or replacement of existing leases and excludes property operating expense reimbursements (dollars in thousands): 2025 $ 314,663 2026 284,612 2027 230,841 2028 176,657 2029 130,700 Thereafter 350,450 Total $ 1,487,923 Note 8. Fair Value Measurements ASC 820 requires disclosure of the level within the fair value hierarchy in which the fair value measurements fall, including measurements using quoted prices in active markets for identical assets or liabilities (Level 1), quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active (Level 2), and significant valuation assumptions that are not readily observable in the market (Level 3). 75 Table of Contents Financial Instruments Disclosed at Fair Value. As of December 31, 2024 and 2023, the fair values of cash and cash equivalents, accounts receivable and accounts payable approximated their carrying values because of the short-term nature of these investments or liabilities based on Level 1 inputs. The fair values of the Company’s mortgage loan and Senior Unsecured Notes were estimated by calculating the present value of principal and interest payments, based on borrowing rates available to the Company, which are Level 2 inputs, adjusted with a credit spread, as applicable, and assuming the loans are outstanding through maturity. The fair value of the Company’s Amended Facility approximated its carrying value because the variable interest rates approximate market borrowing rates available to the Company, which are Level 2 inputs. The following table sets forth the carrying value and the estimated fair value of the Company’s debt as of December 31, 2024 and 2023 (dollars in thousands): Fair Value Measurement Using Total Fair Value Quoted Price in Active Markets for Identical Assets and Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Carrying Value Liabilities Debt at: December 31, 2024 $ 773,456 $ — $ 773,456 $ — $ 823,437 December 31, 2023 $ 721,269 $ — $ 721,269 $ — $ 771,563 Note 9. Stockholders’ Equity The Company’s authorized capital stock consists of 400,000,000 shares of common stock, $ 0.01 par value per share, and 100,000,000 shares of preferred stock, $ 0.01 par value per share. The Company has an at-the-market equity offering program (the "$ 500 Million ATM Program") pursuant to which the Company may issue and sell shares of its common stock having an aggregate offering price of up to $ 500.0 million (approximately $ 438.3 million remaining as of December 31, 2024) in amounts and at times to be determined by the Company from time to time. Prior to the implementation of the $ 500 Million ATM Program, the Company had two previous at-the-market equity offering programs (the "Previous $ 500 Million ATM Program" and the "$ 300 Million ATM Program"), which were substantially utilized as of August 27, 2024 and September 5, 2023, respectively, and are no longer active. Actual sales under the $ 500 Million ATM Program, if any, will depend on a variety of factors to be determined by the Company from time to time, including, among others, market conditions, the trading price of the Company’s common stock, determinations by the Company of the appropriate sources of funding for the Company and potential uses of funding available to the Company. During the year ended December 31, 2024, the Company issued an aggregate of 5,329,544 shares of common stock at a weighted average offering price of $ 66.62 per share under the $ 500 Million ATM Program and the Previous $ 500 Million ATM Program, resulting in net proceeds of approximately $ 349.9 million and paying total compensation to the applicable sales agents of approximately $ 5.1 million. During the year ended December 31, 2023, the Company issued an aggregate of 5,152,279 shares of common stock at a weighted average offering price of $ 61.15 per share under the Previous $ 500 Million ATM Program and the $ 300 Million ATM Program, resulting in net proceeds of approximately $ 310.5 million and paying total compensation to the applicable sales agents of approximately $ 4.6 million. During the year ended December 31, 2022, the Company issued an aggregate of 1,286,125 shares of common stock at a weighted average offering price of $ 61.31 per share under the $ 300 Million ATM Program, resulting in net proceeds of approximately $ 77.7 million, and paying total compensation to the applicable sales agents of approximately $ 1.1 million. On March 27, 2024, the Company completed a public offering of 6,325,000 shares of common stock at a price per share of $ 62.00 , which included the underwriters’ full exercise of their option to purchase an additional 825,000 shares. The net proceeds of the offering were approximately $ 387.1 million after deducting the underwriting discount and offering costs of approximately $ 5.0 million. The Company used the net proceeds for acquisitions. On February 13, 2023, the Company completed a public offering of 5,750,000 shares of common stock at a price per share of $ 62.50 , which included the underwriters’ full exercise of their option to purchase an additional 750,000 shares. The net proceeds of the offering were approximately $ 355.9 million after deducting the underwriting discount and offering costs of approximately $ 3.5 million. The Company used the net proceeds for acquisitions. 76 Table of Contents In connection with the Annual Meeting of Stockholders on May 7, 2024, the Company granted a total of 11,385 unrestricted shares of the Company's common stock to its independent directors under the 2019 Plan with a grant date fair value per share of $ 54.90 . The grant date fair value of the common stock was determined using the closing price of the Company’s common stock on the date of the grant. The Company recognized approximately $ 0.6 million in compensation costs for the year ended December 31, 2024 related to this issuance. The Company has a share repurchase program authorizing the Company to repurchase up to 3,000,000 shares of its outstanding common stock from time to time through December 31, 2026. Purchases made pursuant to the program will be made in either the open market or in privately negotiated transactions as permitted by federal securities laws and other legal requirements. The timing, manner, price and amount of any repurchases will be determined by the Company in its discretion and will be subject to economic and market conditions, stock price, applicable legal requirements and other factors. The program may be suspended or discontinued at any time. As of December 31, 2024, the Company had not repurchased any shares of common stock pursuant to its share repurchase program. The Company has a Non-Qualified Deferred Compensation Plan (the “Deferred Compensation Plan”) maintained for the benefit of select employees and members of the Company’s Board of Directors, in which certain of their cash and equity-based compensation may be deposited. Deferred Compensation Plan assets are held in a rabbi trust, which is subject to the claims of the Company’s creditors in the event of bankruptcy or insolvency. The shares held in the Deferred Compensation Plan are classified within stockholders’ equity in a manner similar to the manner in which treasury stock is classified. Subsequent changes in the fair value of the shares are not recognized. During the years ended December 31, 2024, 2023 and 2022, 0 , 96,874 and 150,867 shares of common stock, respectively, were deposited into the Deferred Compensation Plan. During the years ended December 31, 2024, 2023 and 2022, 11,473 , 5,876 and 8,929 shares of common stock, respectively, were withdrawn from the Deferred Compensation Plan. As of December 31, 2024, there were 1,898,961 shares of common stock authorized for issuance as restricted stock grants, unrestricted stock awards or Performance Share awards under the 2019 Plan, of which 367,561 were remaining and available for issuance. The grant date fair value per share of restricted stock awards issued during the period from February 16, 2010 (commencement of operations) to December 31, 2024 ranged from $ 14.20 to $ 78.33 . The fair value of the restricted stock that was granted during the year ended December 31, 2024 was approximately $ 8.8 million and the vesting period for the restricted stock is typically between three and five years . As of December 31, 2024, the Company had approximately $ 14.4 million of total unrecognized compensation costs related to restricted stock issuances, which is expected to be recognized over a remaining weighted average period of approximately 3.2 years. The Company recognized compensation costs of approximately $ 6.8 million, $ 6.3 million and $ 4.9 million for the years ended December 31, 2024, 2023 and 2022, respectively, related to the restricted stock issuances. 77 Table of Contents The following is a summary of the total restricted shares granted to the Company’s executive officers and employees with the related weighted average grant date fair value share prices for the years ended December 31, 2024, 2023 and 2022: Restricted Stock Activity: Shares Weighted Average Grant Date Fair Value Non-vested shares outstanding as of December 31, 2021 289,186 $ 55.90 Granted 136,903 66.35 Forfeited ( 29,391 ) 59.69 Vested ( 40,066 ) 56.06 Non-vested shares outstanding as of December 31, 2022 356,632 $ 59.58 Granted 132,574 61.58 Forfeited ( 6,989 ) 66.95 Vested ( 63,160 ) 53.64 Non-vested shares outstanding as of December 31, 2023 419,057 $ 60.99 Granted 138,380 63.48 Forfeited ( 16,836 ) 66.98 Vested ( 114,213 ) 55.39 Non-vested shares outstanding as of December 31, 2024 426,388 $ 63.06 The following is a vesting schedule of the total non-vested shares of restricted stock outstanding as of December 31, 2024: Non-vested Shares Vesting Schedule Number of Shares 2025 97,728 2026 79,848 2027 104,572 2028 73,070 2029 71,170 Thereafter — Total Non-vested Shares 426,388 Long-Term Incentive Plan: As of December 31, 2024, there were three open performance measurement periods for the Performance Share awards: January 1, 2022 to December 31, 2024, January 1, 2023 to December 31, 2025, and January 1, 2024 to December 31, 2026. During the year ended December 31, 2024, the Company did not issue any shares of common stock related to the Performance Share awards for the performance period from January 1, 2022 to December 31, 2024. The following table summarizes certain information with respect to the Performance Share awards granted on or after January 1, 2019 and includes the forfeiture of certain of the Performance Share awards during 2024 (dollars in thousands): 78 Table of Contents Performance Share Period Fair Value on Date of Grant 1 Expense for the Year Ended December 31, 2024 2023 2022 January 1, 2020 - December 31, 2022 $ 4,882 $ — $ — $ 1,168 January 1, 2021 - December 31, 2023 4,820 — 1,608 1,393 January 1, 2022 - December 31, 2024 5,618 1,744 1,928 1,929 January 1, 2023 - December 31, 2025 8,583 2,670 3,012 — January 1, 2024 - December 31, 2026 9,261 3,070 — Total $ 33,164 $ 7,484 $ 6,548 $ 4,490 1 Reflects the fair value on date of grant for all performance shares outstanding at December 31, 2024. Dividends: The following tables set forth the cash dividends paid or payable per share during the years ended December 31, 2024 and 2023: For the Three Months Ended Security Dividend per Share Declaration Date Record Date Date Paid March 31, 2024 Common Stock $ 0.45 February 6, 2024 March 28, 2024 April 5, 2024 June 30, 2024 Common Stock $ 0.45 May 7, 2024 June 28, 2024 July 12, 2024 September 30, 2024 Common Stock $ 0.49 August 6, 2024 September 30, 2024 October 11, 2024 December 31, 2024 Common Stock $ 0.49 November 5, 2024 December 13, 2024 January 7, 2025 For the Three Months Ended Security Dividend per Share Declaration Date Record Date Date Paid March 31, 2023 Common Stock $ 0.40 February 7, 2023 March 31, 2023 April 6, 2023 June 30, 2023 Common Stock $ 0.40 May 2, 2023 June 30, 2023 July 14, 2023 September 30, 2023 Common Stock $ 0.45 August 1, 2023 September 29, 2023 October 13, 2023 December 31, 2023 Common Stock $ 0.45 October 31, 2023 December 15, 2023 January 5, 2024 Note 10. Net Income (Loss) Per Share Pursuant to ASC 260-10-45, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities , unvested share-based payment awards that contain non-forfeitable rights to dividends are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The two-class method of computing earnings per share allocates earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. Under the two-class method, earnings per common share are computed by dividing the sum of distributed earnings to common stockholders and undistributed earnings allocated to common stockholders by the weighted average number of common shares outstanding for the period. The Company’s non-vested shares of restricted stock are considered participating securities since these share-based awards contain non-forfeitable rights to dividends irrespective of whether the awards ultimately vest or expire. The Company had no antidilutive securities or dilutive restricted stock awards outstanding for the three months and years ended December 31, 2024, 2023, and 2022. In accordance with the Company’s policies of determining whether instruments granted in share-based payment transactions are participating securities and accounting for earnings per share, the net income (loss) per common share is adjusted for earnings distributed through declared dividends (if any) and allocated to all participating securities (weighted average common shares outstanding and unvested restricted shares outstanding) under the two-class method. Under this method, allocations were made 429,748 , 393,059 and 322,866 of weighted average unvested restricted shares outstanding for the years ended December 31, 2024, 2023 and 2022, respectively. 79 Table of Contents Performance Share awards which may be payable in shares of the Company’s common stock after the conclusion of each pre-established performance measurement period are included as contingently issuable shares in the calculation of diluted weighted average common shares of stock outstanding assuming the reporting period is the end of the measurement period, and the effect is dilutive. Diluted shares related to the Performance Share awards were 317,588 , 202,071 and 88,373 for the years ended December 31, 2024, 2023 and 2022, respectively. Note 11. Commitments and Contingencies Litigation . The Company is not involved in any material litigation nor, to its knowledge, is any material litigation threatened against it. In the normal course of business, from time to time, the Company may be involved in legal actions relating to the ownership and operations of its properties. Management does not expect that the liabilities, if any, that may ultimately result from such legal actions will have a material effect on the consolidated financial position, results of operations or cash flows of the Company. Contractual Commitments. As of February 4, 2025, the Company did not have any outstanding contracts or non-binding letters of intent to acquire industrial properties. Note 12. Subsequent Events On January 7, 2025, the Company sold one industrial property in Union City, CA, which was held for sale as of December 31, 2024, for a total sales price of approximately $ 16.9 million (net book value of approximately $ 6.3 million). On January 16, 2025, the Company sold one industrial property in South San Francisco, CA for a total sales price of approximately $ 8.0 million (net book value of approximately $ 6.0 million). On February 4, 2025, the Company’s board of directors declared a cash dividend in the amount of $ 0.49 per share of its common stock payable on April 4, 2025 to the stockholders of record as of the close of business on March 27, 2025. 80 Table of Contents Terreno Realty Corporation Schedule III Real Estate Investments and Accumulated Depreciation As of December 31, 2024 (in thousands) Initial Cost to Company Costs Capitalized Subsequent to Acquisition Gross Amount Carried at December 31, 2024 Property Name No. of Bldgs. Location Encumbrances Land Buildings & Improvements Land Buildings & Improvements Total Accumulated Depreciation Year Acquired Year Constructed Los Angeles 104th Street 1 Los Angeles, CA $ — $ 3,701 $ 976 $ 175 $ 3,701 $ 1,151 $ 4,852 $ 215 2017 1951 5401 West 104th St 1 Los Angeles, CA — 15,721 1,463 164 15,721 1,627 17,348 99 2022 1951 139th Street — Carson, CA — — 15,783 340 — 16,123 16,123 9,150 2017 1965/2003 630 Glasgow 1 Inglewood, CA — 2,245 1,855 846 2,245 2,701 4,946 1,044 2011 1988 747 Glasgow 1 Inglewood, CA — 1,759 1,555 475 1,759 2,030 3,789 765 2014 1981 1150 & 1250 W. Trenton Ave 2 Orange, CA — 7,491 2,488 — 7,491 2,488 9,979 237 2021 1980 & 1971 13020 & 13030 Cerise 2 Hawthorne, CA — 6,986 1,371 2,002 6,986 3,373 10,359 240 2021 1956 & 1958 13025 Cerise 1 Hawthorne, CA — 6,864 1,330 103 6,864 1,433 8,297 125 2021 1955 1201 Foothill Boulevard 1 Azusa, CA — 3,091 941 1 3,091 942 4,033 17 2024 1987 1335 Foothill Boulevard 1 Azusa, CA — 3,368 2,774 139 3,368 2,913 6,281 46 2024 1987 1355-1365 Foothill Boulevard 1 Azusa, CA — 5,145 2,729 151 5,145 2,880 8,025 47 2024 1987 16009-16019 Foothill Boulevard 1 Irwindale, CA — 4,983 2,512 59 4,983 2,571 7,554 43 2024 1985 16033-16037 Foothill Boulevard 1 Irwindale, CA — 4,075 2,567 59 4,075 2,626 6,701 44 2024 1985 16057-16059 Foothill Boulevard 1 Irwindale, CA — 3,982 2,297 59 3,982 2,356 6,338 39 2024 1985 14611 Broadway 1 Gardena, CA — 4,757 1,243 1,612 4,757 2,855 7,612 1,595 2013 1962 4857 W 147th St 1 Hawthorne, CA — 6,185 8,817 846 6,185 9,663 15,848 31 2022 1967 3660 Fee Ana — Anaheim, CA — 14,213 1,147 1,211 14,213 2,358 16,571 236 2022 1966/1993 19601 Hamilton 1 Torrance, CA — 7,409 4,072 1,882 7,409 5,954 13,363 2,394 2011 1985 735-751 Todd Avenue 1 Azusa, CA — 6,176 1,478 76 6,176 1,554 7,730 25 2024 1987 8320-8400 Isis Avenue 1 Los Angeles, CA — 14,963 3,429 230 14,963 3,659 18,622 264 2022 1979 332 Hindry Avenue 1 Inglewood, CA — 6,977 2,800 412 6,977 3,212 10,189 227 2022 1983 709 Hindry 1 Inglewood, CA — 2,105 2,972 663 2,105 3,635 5,740 872 2016 1984 Acacia 1 Compton, CA — 5,143 1,985 511 5,143 2,496 7,639 633 2017 1972 Anderson 5 Los Angeles, CA — 17,095 1,271 5,330 17,095 6,601 23,696 1,009 2019 1912-1987 Aviation — Inglewood, CA — 9,544 498 1,685 9,544 2,183 11,727 292 2020 2013 Ceres Ave 2 Los Angeles, CA — 4,825 2,833 107 4,825 2,940 7,765 250 2021 2015 Dominguez — Los Angeles, CA — 11,370 1,535 3,597 11,370 5,132 16,502 1,506 2017 3091 East Coronado St — Anaheim, CA — 7,140 464 239 7,140 703 7,843 109 2022 2017 1 Table of Contents Initial Cost to Company Costs Capitalized Subsequent to Acquisition Gross Amount Carried at December 31, 2024 Property Name No. of Bldgs. Location Encumbrances Land Buildings & Improvements Land Buildings & Improvements Total Accumulated Depreciation Year Acquired Year Constructed Garfield 5 Commerce, CA — 27,539 22,694 7,507 27,539 30,201 57,740 12,284 2012 2002 Gladwick 1 Rancho Dominguez, CA — 11,636 5,998 341 11,636 6,339 17,975 932 2020 2009 Gramercy Place 1 Torrance, CA — 4,846 1,503 455 4,846 1,958 6,804 270 2021 2015 Hawthorne 8 Hawthorne, CA — 17,226 10,069 3,103 17,226 13,172 30,398 2,987 2017 1952/1986 Las Hermanas 1 Compton, CA — 3,330 751 888 3,330 1,639 4,969 811 2014 1970 Lynwood 3 Lynwood, CA — 43,885 — — 43,885 — 43,885 — 2017 1988 McLaren 1 Irvine, CA — 7,459 668 — 7,459 668 8,127 96 2020 1982 Manhattan Beach 1 Redondo Beach, CA — 7,874 5,641 1,936 7,874 7,577 15,451 2,593 2012 1963/1970 Maple — Rancho Dominguez, CA — 9,371 607 745 9,371 1,352 10,723 336 2020 1978 Maple II — Rancho Dominguez, CA — 14,102 183 495 14,102 678 14,780 273 2021 Maple III — Rancho Dominguez, CA — 24,728 1,637 2,016 24,728 3,653 28,381 4 2022 Porter 1 Los Angeles, CA — 3,791 399 85 3,791 484 4,275 47 2020 1911 & 1968 San Pedro — Gardena, CA — 7,598 1,523 360 7,598 1,883 9,481 305 2021 Santa Fe 2 Redondo Beach, CA — 37,049 5,560 87 37,049 5,647 42,696 192 2023 1968 Shoemaker — Santa Fe Springs, CA — 4,759 1,099 281 4,759 1,380 6,139 355 2018 1986/1997 Slauson — Santa Fe Springs, CA — 4,679 697 972 4,679 1,669 6,348 362 2019 1967/1973 19500 South Alameda St — Rancho Dominguez, CA — 30,176 2,364 292 30,176 2,656 32,832 201 2022 1982/1985 South Main 2 Carson, CA — 16,371 7,045 17,452 16,371 24,497 40,868 9,464 2012/2014 2016 South Main III 1 Gardena, CA — 11,521 12,467 1,079 11,521 13,546 25,067 2,942 2017 2016 Telegraph Springs 2 Santa Fe Springs, CA — 7,063 7,236 747 7,063 7,983 15,046 1,873 2017 2007 Vermont 1 Torrance, CA — 10,173 7,105 1,338 10,173 8,443 18,616 1,563 2018 1978 Walnut II 1 Compton, CA — 6,097 5,069 986 6,097 6,055 12,152 1,366 2018 1969 New York City/Northern New Jersey 17 Madison 1 Fairfield, NJ — 974 1,647 802 974 2,449 3,423 1,011 2013 1979 144-02 158th Street 1 Jamaica, Queens, NY — 11,175 4,533 199 11,175 4,732 15,907 72 2024 1981 145-07 156th Street 1 Jamaica, Queens, NY — 1,408 730 6 1,408 736 2,144 11 2024 1963 145-20 157th Street 1 Jamaica, Queens, NY — 14,598 7,707 83 14,598 7,790 22,388 121 2024 1969 145-45 156th Street 1 Jamaica, Queens, NY — 7,909 3,968 — 7,909 3,968 11,877 62 2024 1981 149-39 Guy R. Brewer Boulevard 1 Jamaica, Queens, NY — 3,603 2,127 1 3,603 2,128 5,731 33 2024 1966 149-40 182nd Street 1 Jamaica, Queens, NY — 4,066 1,450 10 4,066 1,460 5,526 23 2024 1989 154-09 146th Avenue 1 Jamaica, Queens, NY — 9,478 1,782 19 9,478 1,801 11,279 29 2024 1994 156-15 146th Avenue 1 Jamaica, Queens, NY — 1,675 226 93 1,675 319 1,994 7 2024 1983 179-02 150th Avenue 1 Jamaica, Queens, NY — 17,837 8,625 9 17,837 8,634 26,471 135 2024 1970 179-15 149th Road 1 Jamaica, Queens, NY — 3,894 1,382 1 3,894 1,383 5,277 22 2024 1969 182-09 149th Road 1 Jamaica, Queens, NY — 10,350 4,042 30 10,350 4,072 14,422 64 2024 1982 182-17 150th Avenue 1 Jamaica, Queens, NY — 25,274 2,841 275 25,274 3,116 28,390 48 2024 1984 2 Table of Contents Initial Cost to Company Costs Capitalized Subsequent to Acquisition Gross Amount Carried at December 31, 2024 Property Name No. of Bldgs. Location Encumbrances Land Buildings & Improvements Land Buildings & Improvements Total Accumulated Depreciation Year Acquired Year Constructed 181 Lombardy 1 Brooklyn, NY — 9,124 2,986 435 9,124 3,421 12,545 64 2024 1940 195 Anderson Avenue 1 Moonachie, NJ — 3,577 1,336 — 3,577 1,336 4,913 22 2024 1968 1C Terminal Way 1 Avenel, NJ — 8,671 2,619 252 8,671 2,871 11,542 43 2024 1966 2AB Terminal Way 1 Avenel, NJ — 11,778 10,531 17 11,778 10,548 22,326 168 2024 1970 2C Terminal Way 1 Avenel, NJ — 6,466 5,208 10 6,466 5,218 11,684 83 2024 1966 22 Madison 1 Fairfield, NJ — 1,365 1,607 1,209 1,365 2,816 4,181 799 2015 1979 280 Richards Street 1 Red Hook, Brooklyn, NY 72,879 86,446 79,653 — 86,446 79,653 166,099 83 2024 2021 48th 3rd and 286 Central 1 Kearny, NJ — 12,061 1,664 1,768 12,061 3,432 15,493 529 2019 1978/1983 48-29 31st Pl 1 Long Island City, Queens, NY — 5,750 1,946 81 5,750 2,027 7,777 2 2024 1965 49-15 Maspeth Ave 1 Maspeth, Queens, NY — 42,560 7,258 — 42,560 7,258 49,818 7 2024 1966 4AB Engelhard 1 Avenel, NJ — 13,164 8,894 16 13,164 8,910 22,074 142 2024 1966 8AB Engelhard 1 Avenel, NJ — 11,688 10,763 900 11,688 11,663 23,351 181 2024 1966 9th Street 1 Long Island City, NY — 18,410 5,116 5,271 18,410 10,387 28,797 734 2023 1939 49th Street 1 Queens, NY — 21,674 2,999 1,435 21,674 4,434 26,108 1,423 2019 1966 50 Kero 2 Carlstadt, NJ — 10,343 3,876 4,558 10,343 8,434 18,777 2,268 2017 1970 51 Kero — Carlstadt, NJ — 3,236 589 619 3,236 1,208 4,444 111 2019 1956-1966 74th North Bergen 1 North Bergen, NJ — 2,933 1,817 1,204 2,933 3,021 5,954 1,032 2016 1973 81 N. Hackensack — Kearny, NJ — 25,901 — 1,263 25,901 1,263 27,164 465 2019 85 Doremus — Newark, NJ — 5,918 513 26 5,918 539 6,457 122 2018 87 Doremus — Newark, NJ — 21,595 550 764 21,595 1,314 22,909 68 2022 N/A 127 Doremus — Newark, NJ — 12,111 430 520 12,111 950 13,061 127 2022 N/A 97 Third Street — Kearny, NJ — 25,580 1,566 1,690 25,580 3,256 28,836 600 2021 1970 190 Morgan 1 Brooklyn, NY — 4,363 249 1,137 4,363 1,386 5,749 246 2021 1969 341 Michele 1 Carlstadt, NJ — 2,372 4,798 1,312 2,372 6,110 8,482 2,107 2013 1973 422 Frelinghuysen — Newark, NJ — 7,682 — 3,136 7,682 3,136 10,818 977 2017 465 Meadow 1 Carlstadt, NJ — 713 1,618 346 713 1,964 2,677 608 2013 1972 550 Delancy 1 Newark, NJ — 9,230 4,855 2,400 9,230 7,255 16,485 2,837 2013 1987 620 Division 1 Elizabeth, NJ — 6,491 3,568 7,746 6,491 11,314 17,805 4,664 2011 1980 629 Henry 1 Elizabeth, NJ — 13,734 1,690 394 13,734 2,084 15,818 174 2022 2004 900 Hart 1 Piscataway, NJ — 3,202 3,866 1,951 3,202 5,817 9,019 2,094 2014 1983 901 North — Elizabeth, NJ — 8,035 913 1,100 8,035 2,013 10,048 872 2016 2016 228 North Ave 1 Elizabeth, NJ — 40,671 5,218 1,683 40,671 6,901 47,572 884 2021 1975 256 Patterson Plank 1 Carlstadt, NJ — 9,478 1,284 1,766 9,478 3,050 12,528 468 2021 1960 293 Roanoke Avenue — Newark, NJ — 11,395 2,217 398 11,395 2,615 14,010 313 2022 N/A Avenue A 4 Carlstadt, NJ — 7,516 4,660 1,642 7,516 6,302 13,818 1,887 2017 1951/1957 Belleville 1 Kearny, NJ — 12,845 18,041 1,847 12,845 19,888 32,733 6,984 2011 2006 3 Table of Contents Initial Cost to Company Costs Capitalized Subsequent to Acquisition Gross Amount Carried at December 31, 2024 Property Name No. of Bldgs. Location Encumbrances Land Buildings & Improvements Land Buildings & Improvements Total Accumulated Depreciation Year Acquired Year Constructed Commerce 1 Carlstadt, NJ — 1,656 1,544 443 1,656 1,987 3,643 360 2018 1969 Dell 1 Carlstadt, NJ — 6,641 771 888 6,641 1,659 8,300 642 2011 1972 Ethel 2 Piscataway, NJ — 2,748 3,801 2,667 2,748 6,468 9,216 2,262 2013 1981/1984 Interstate 2 South Brunswick, NJ — 13,686 12,135 13,923 13,686 26,058 39,744 10,105 2010/2013 1999/2014 JFK Airgate 4 Queens, NY — 18,282 32,933 9,605 18,282 42,538 60,820 15,573 2013 1986/1991 Manor 1 East Rutherford, NJ — 4,076 5,262 3,827 4,076 9,089 13,165 2,405 2015 1968 Morgan 2 Brooklyn, NY — 71,051 10,888 7,320 71,051 18,208 89,259 3,508 2019 1960/1980 & 1967 New Dutch 1 Fairfield, NJ — 4,773 2,004 — 4,773 2,004 6,777 551 2017 1976 Paterson Plank 1 Carlstadt, NJ — 4,127 455 1,472 4,127 1,927 6,054 393 2016 1998 Stockton — Newark, NJ — 12,327 1,282 536 12,327 1,818 14,145 843 2017 Terminal Way 2 Avenel, NJ — 3,537 3,598 1,350 3,537 4,948 8,485 1,615 2014 1950/1968 Van Dyke 1 Red Hook, Brooklyn, NY — 21,170 3,200 5,303 21,170 8,503 29,673 218 2023 1921 Whelan 1 East Rutherford, NJ — 6,366 5,704 616 6,366 6,320 12,686 1,137 2019 2005 Wilson 1 Newark, NJ — 2,016 484 1,001 2,016 1,485 3,501 609 2016 1970 Woodside 1 Queens, NY — 23,987 3,796 4,107 23,987 7,903 31,890 2,056 2018 2018 San Francisco Bay Area 1200-1220 San Mateo Avenue 1 South San Francisco, CA — 24,488 7,126 1,615 24,488 8,741 33,229 128 2024 1972 20th Street 1 Oakland, CA — 18,092 6,730 2,011 18,092 8,741 26,833 1,600 2019 1970 & 2003 20269-20281 Mack Street 1 Hayward, CA — 8,758 2,395 9 8,758 2,404 11,162 43 2024 1977 238/242 Lawrence 2 South San Francisco, CA — 6,674 2,655 2,534 6,674 5,189 11,863 2,466 2010 1986 240 Littlefield 1 South San Francisco, CA — 5,107 3,293 2,862 5,107 6,155 11,262 1,976 2013 2013 299 Lawrence 1 South San Francisco, CA — 1,352 1,198 600 1,352 1,798 3,150 840 2010 1968 3528 Arden Road 1 Hayward, CA — 15,272 10,100 26 15,272 10,126 25,398 168 2024 1999 631 Brennan 1 San Jose, CA — 1,932 2,245 1,060 1,932 3,305 5,237 1,311 2012 1975 3660 Thomas Road 1 Santa Clara, CA — 43,053 13,887 1,652 43,053 15,539 58,592 1,247 2022 1973 Ahern 2 Union City, CA — 3,246 2,749 2,220 3,246 4,969 8,215 2,095 2010 1986 Berryessa — San Jose, CA — 23,057 2,574 827 23,057 3,401 26,458 233 2021 Burroughs 3 San Leandro, CA — 5,400 7,092 1,736 5,400 8,828 14,228 2,986 2014 1966 Caribbean 3 Sunnyvale, CA — 17,483 14,493 4,359 17,483 18,852 36,335 6,689 2012 1980/1981 Carlton Court 1 South San Francisco, CA — 2,036 1,475 854 2,036 2,329 4,365 790 2012 1981 Clawiter 1 Hayward, CA — 5,964 1,159 189 5,964 1,348 7,312 427 2011 1967 East Gish — San Jose, CA — 6,759 726 2 6,759 728 7,487 92 2021 1959 Edison 3 San Leandro, CA — 14,797 2,806 3,386 14,797 6,192 20,989 766 2021 1975 Foley Street 2 Hayward, CA — 5,023 3,281 677 5,023 3,958 8,981 451 2021 1976 & 1972 4 Table of Contents Initial Cost to Company Costs Capitalized Subsequent to Acquisition Gross Amount Carried at December 31, 2024 Property Name No. of Bldgs. Location Encumbrances Land Buildings & Improvements Land Buildings & Improvements Total Accumulated Depreciation Year Acquired Year Constructed Hotchkiss 1 Fremont, CA — 4,163 3,152 1,259 4,163 4,411 8,574 792 2017 1997 Hotchkiss II 1 Fremont, CA — 3,042 3,081 586 3,042 3,667 6,709 694 2018 1997 Merced 4 San Leandro, CA — 25,621 9,318 7,597 25,621 16,915 42,536 3,177 2018 1958 Michele 1 South San Francisco, CA — 2,710 2,540 792 2,710 3,332 6,042 812 2016 1979 Minnesota and Tennessee 2 San Francisco, CA — 34,738 13,141 3,872 34,738 17,013 51,751 2,440 2019 1963 Morton 4 Newark, CA — 65,640 115,039 514 65,640 115,553 181,193 5,412 2023 2020 Old Bayshore — San Jose, CA — 10,244 1,609 415 10,244 2,024 12,268 353 2020 1955 San Clemente 1 Hayward, CA — 5,126 3,938 1,186 5,126 5,124 10,250 883 2018 1982 Teagarden 5 San Leandro, CA — 19,172 15,221 733 19,172 15,954 35,126 1,153 2022 1970/1972 Starlite 1 South San Francisco, CA — 3,738 144 2,373 3,738 2,517 6,255 238 2020 1966 & 1972 West 140th 2 San Leandro, CA — 9,578 6,297 4,572 9,578 10,869 20,447 2,699 2016 1959 Whitney 3 San Leandro, CA — 13,821 9,016 2,723 13,821 11,739 25,560 2,541 2018 1974 Wicks 1 San Leandro, CA — 2,224 298 114 2,224 412 2,636 104 2018 1976 Central Pacific Business Park I 1 Union City, CA — 6,629 11,088 1,790 6,629 12,878 19,507 3,913 2014 1989 Central Pacific Business Park II 4 Union City, CA — 13,642 23,658 7,980 13,642 31,638 45,280 10,852 2015 2015 Seattle 1st Ave 2 Seattle, WA — 29,441 30,537 8,942 29,441 39,479 68,920 5,497 2018 1937 & 1967 13045 SE 32nd Street 1 Bellevue, WA — 5,982 536 886 5,982 1,422 7,404 51 2024 1979 33rd Place 2 Bellevue, WA — 10,655 3,930 144 10,655 4,074 14,729 355 2022 1968-2009 6th Ave South 1 Seattle, WA — 7,215 8,670 480 7,215 9,150 16,365 1,446 2020 1960 68th Kent 2 Kent, WA — 7,465 2,263 210 7,465 2,473 9,938 261 2021 1976 84th Kent — Kent, WA — 4,552 136 310 4,552 446 4,998 187 2020 1963 & 2000 117th Place NE 1 Kirkland, WA — 23,846 9,842 1,329 23,846 11,171 35,017 1,226 2021 1978 917 Valley 1 Puyallup, WA — 2,203 4,551 373 2,203 4,924 7,127 787 2019 2006 3401 Lind 1 Renton, WA — 2,999 6,707 1,451 2,999 8,158 11,157 2,386 2014 1984/2012 4225 2nd Avenue 1 Seattle, WA — 4,236 4,049 2,283 4,236 6,332 10,568 1,877 2015 1957 4930 3rd Avenue South 1 Seattle, WA — 3,984 2,424 1,202 3,984 3,626 7,610 1,098 2016 1964 12119 East Marginal — Tukwila, WA — 4,950 1,740 — 4,950 1,740 6,690 198 2020 1996 17600 West Valley Highway 1 Tukwila, WA — 3,361 5,260 1,916 3,361 7,176 10,537 2,925 2012 1986 Auburn 400 1 Auburn, WA — 4,415 5,234 1,194 4,415 6,428 10,843 1,084 2019 2000 Auburn 1307 1 Auburn, WA — 4,253 5,034 743 4,253 5,777 10,030 1,859 2014 2002 Dawson 1 Seattle, WA — 3,902 278 654 3,902 932 4,834 330 2017 1964 East Valley 1 Renton, WA — 2,693 2,959 381 2,693 3,340 6,033 621 2018 1991 East Marginal — Renton, WA — 2,618 380 198 2,618 578 3,196 170 2019 1991 Hudson 1 Seattle, WA — 4,471 912 323 4,471 1,235 5,706 204 2020 2006 5 Table of Contents Initial Cost to Company Costs Capitalized Subsequent to Acquisition Gross Amount Carried at December 31, 2024 Property Name No. of Bldgs. Location Encumbrances Land Buildings & Improvements Land Buildings & Improvements Total Accumulated Depreciation Year Acquired Year Constructed Kent 188 1 Kent, WA — 3,251 4,719 3,065 3,251 7,784 11,035 2,970 2010 1979 Kent 190 1 Kent, WA — 4,560 5,561 1,522 4,560 7,083 11,643 2,099 2015 1992/1999 Kent 192 1 Kent, WA — 12,752 20,642 533 12,752 21,175 33,927 3,290 2020 Kent 202 1 Kent, WA — 5,761 9,114 4,528 5,761 13,642 19,403 4,190 2015 1981 Kent 216 1 Kent, WA — 3,672 5,408 1,145 3,672 6,553 10,225 2,198 2014 1996 Kent Corporate Park 4 Kent, WA — 5,032 6,916 2,677 5,032 9,593 14,625 3,493 2015 1980/1981 Lucile 1 Seattle, WA — 4,498 3,504 1,738 4,498 5,242 9,740 1,544 2017 1976 Lund 1 Auburn, WA — 2,573 4,399 596 2,573 4,995 7,568 1,250 2016 1999 Occidental Avenue 3 Seattle, WA — 12,550 3,300 1,261 12,550 4,561 17,111 556 2021 1988 Olympic 1 Tukwila, WA — 1,499 1,431 742 1,499 2,173 3,672 924 2015 1978 MLK 9801 — Seattle, WA — 14,388 1,360 429 14,388 1,789 16,177 140 2021 MLK 9845 — Seattle, WA — 14,436 531 95 14,436 626 15,062 120 2021 MLK 9600 — Seattle, WA — 20,849 1,395 812 20,849 2,207 23,056 722 2021 1957 NE 91st 2 Redmond, WA — 7,944 1,866 — 7,944 1,866 9,810 133 2022 1986/1987 SeaTac 8th Avenue 1 Burien, WA — 2,501 4,020 2,339 2,501 6,359 8,860 2,364 2013 1988 SE 32nd Street 1 Bellevue, WA — 9,059 2,081 1,549 9,059 3,630 12,689 910 2020 1982 SW 16th Street — Renton, WA — 6,251 2,001 1,307 6,251 3,308 9,559 216 2021 1962 SW 34th 1 Renton, WA — 2,912 3,289 540 2,912 3,829 6,741 1,350 2014 1996/2010 Valley Corporate 2 Kent, WA — 5,264 9,096 3,095 5,264 12,191 17,455 4,948 2011 1987 Woodinville 1 Woodinville, WA — 12,490 12,244 2 12,490 12,246 24,736 1,010 2021 1996 Woodinville II 2 Woodinville, WA — 20,941 12,949 182 20,941 13,131 34,072 1,029 2021 1999 Willows — Redmond, WA — 3,067 581 179 3,067 760 3,827 81 2021 1970 8660 Willows Road — Redmond, WA — 18,034 2,180 1,422 18,034 3,602 21,636 337 2022 1987 Miami 26th Street 1 Miami, FL — 3,444 4,558 1,272 3,444 5,830 9,274 2,066 2012 1973 48th Avenue 2 Miami Gardens, FL — 4,322 2,187 1,053 4,322 3,240 7,562 1,039 2011 1987 70th Avenue 1 Miami, FL — 1,434 2,333 469 1,434 2,802 4,236 1,030 2011 1999 70th Avenue II 1 Miami, FL — 2,152 3,418 1,025 2,152 4,443 6,595 1,181 2016 1969 70th Avenue III 1 Miami, FL — 2,543 3,167 848 2,543 4,015 6,558 1,005 2016 1974 70th Avenue IV 1 Miami, FL — 1,119 1,456 727 1,119 2,183 3,302 492 2017 1969 70th Avenue V 1 Miami, FL — 5,036 3,419 2,431 5,036 5,850 10,886 1,084 2017 1974 73rd Street 2 Miami, FL — 6,130 13,932 493 6,130 14,425 20,555 1,159 2021 2022 74th Avenue 1 Miami, FL — 2,327 3,538 965 2,327 4,503 6,830 1,219 2016 1986 81st Street 2 Medley, FL — 2,938 5,242 2,077 2,938 7,319 10,257 2,400 2015 1996/2003 94th Avenue 1 Doral, FL — 3,000 3,580 3,072 3,000 6,652 9,652 984 2017 1989 107th Avenue 1 Medley, FL — 2,787 2,036 933 2,787 2,969 5,756 1,224 2013 2001 101st Road 1 Medley, FL — 2,647 3,258 1,074 2,647 4,332 6,979 1,642 2013 2012 6 Table of Contents Initial Cost to Company Costs Capitalized Subsequent to Acquisition Gross Amount Carried at December 31, 2024 Property Name No. of Bldgs. Location Encumbrances Land Buildings & Improvements Land Buildings & Improvements Total Accumulated Depreciation Year Acquired Year Constructed 131st Street 1 Medley, FL — 2,903 5,729 1,408 2,903 7,137 10,040 2,176 2014 1999 7045 NW 46th St 1 Miami, FL — 2,517 2,261 210 2,517 2,471 4,988 193 2022 1986 8050 NW 90th St — Medley, FL — 18,612 2,067 3,478 18,612 5,545 24,157 549 2022 N/A 12950 SW South River 1 Medley, FL — 1,971 4,029 840 1,971 4,869 6,840 1,264 2016 2000 Americas Gateway 5 Doral, FL — 9,088 9,552 5,529 9,088 15,081 24,169 5,796 2013 1978/1982 Americas Gateway 5 1 Doral, FL — 2,064 4,326 355 2,064 4,681 6,745 445 2013 2022 Countyline #24 & #25 2 Hialeah, FL — 15,552 27,898 6,636 15,552 34,534 50,086 4,464 2021 2021 & 2021 Countyline #26 1 Hialeah, FL — 11,826 24,407 4,958 11,826 29,365 41,191 3,388 2021 2021 Countyline #27 & #28 2 Hialeah, FL — 18,595 49,052 9,847 18,595 58,899 77,494 6,764 2021 2021 & 2021 Countyline #29 & #30 2 Hialeah, FL — 19,370 52,925 6,530 19,370 59,455 78,825 4,526 2022 2022 Countyline 31 1 Hialeah, FL — 13,425 28,576 870 13,425 29,446 42,871 145 2023 2024 Countyline 38 1 Hialeah, FL — 36,898 67,304 — 36,898 67,304 104,202 1,623 2023 2024 Countyline 39 1 Hialeah, FL — 14,647 29,337 — 14,647 29,337 43,984 316 2023 2024 Countyline 40 1 Hialeah, FL — 12,151 28,265 — 12,151 28,265 40,416 650 2023 2024 Countyline 41 1 Hialeah, FL — 14,044 31,261 469 14,044 31,730 45,774 1,118 2023 2023 Doral Air Logistics Center 3 Doral, FL — 70,197 117,640 — 70,197 117,640 187,837 124 2024 2022 Miami International Trade Center 4 Medley, FL — 5,063 10,958 3,671 5,063 14,629 19,692 3,942 2015 1996 Washington, D.C. 25th Place NE 1 Washington, D.C. — 7,845 4,932 336 7,845 5,268 13,113 210 2023 2023 75th Ave 5 Landover, MD — 10,658 18,615 6,766 10,658 25,381 36,039 7,832 2014 1987/1990 2920 V Street 1 Washington, D.C. — 2,248 1,670 1,600 2,248 3,270 5,518 775 2017 1958 3000 V Street NE 1 Washington, D.C. — 5,171 2,745 594 5,171 3,339 8,510 27 2024 1960 3601 Pennsy 1 Landover, MD — 2,331 4,375 1,757 2,331 6,132 8,463 2,300 2013 1996 4230 Forbes 1 Lanham, MD — 1,736 2,395 1,387 1,736 3,782 5,518 1,223 2013 2003 4501 46th Street — Bladensburg, MD — 9,576 1,984 1,029 9,576 3,013 12,589 252 2021 1955 Business Parkway 1 Lanham, MD — 3,038 3,007 210 3,038 3,217 6,255 726 2016 2002 Eisenhower 3 Alexandria, VA — 36,755 23,768 2,506 36,755 26,274 63,029 2,241 2021 1974 Fleet 4 Alexandria, VA — 52,000 29,858 383 52,000 30,241 82,241 576 2024 1977 Hampton Overlook 3 Capitol Heights, MD — 4,602 7,521 2,579 4,602 10,100 14,702 2,585 2016 1989/1990 Pickett 1 Alexandria, VA — 6,256 2,850 702 6,256 3,552 9,808 429 2021 1963 Tuxedo — Hyattsville, MD — 6,867 1,266 1,104 6,867 2,370 9,237 280 2021 1962 7 Table of Contents Initial Cost to Company Costs Capitalized Subsequent to Acquisition Gross Amount Carried at December 31, 2024 Property Name No. of Bldgs. Location Encumbrances Land Buildings & Improvements Land Buildings & Improvements Total Accumulated Depreciation Year Acquired Year Constructed V Street 6 Washington, D.C. — 67,132 41,299 20,732 67,132 62,031 129,163 19,719 2015 1955/1963 Subtotal 298 72,879 2,586,471 1,720,864 386,448 2,586,471 2,107,312 4,693,783 350,903 Unamortized fair value adjustment ( 3,590 ) Unamortized net deferred financing costs ( 185 ) Intangible assets 208,475 115,650 Total 298 — — $ 69,104 — $ 2,586,471 — $ 1,720,864 — $ 386,448 — $ 2,586,471 — $ 2,107,312 — $ 4,902,258 — $ 466,553 Assets held for sale 1 — 2,467 4,527 721 2,467 5,248 7,715 1,457 8 Table of Contents Terreno Realty Corporation Schedule III Real Estate Investments and Accumulated Depreciation – (Continued) As of December 31, 2024 (in thousands) A summary of activity for real estate and accumulated depreciation for the years ended December 31, 2024 and 2023 is as follows: 2024 2023 Investment in Properties Balance at beginning of year $ 4,047,840 $ 3,398,774 Acquisition of properties 937,908 512,531 Disposition of properties ( 31,755 ) ( 43,854 ) Construction in progress 129,564 139,974 Properties held for sale ( 7,715 ) — Improvements, net of write-offs 46,068 40,415 Balance at end of year $ 5,121,910 $ 4,047,840 2024 2023 Accumulated Depreciation Balance at beginning of year $ 384,480 $ 323,631 Amortization of lease intangible assets 20,368 15,008 Depreciation expense 71,704 56,765 Accumulated depreciation on properties held for sale ( 1,457 ) — Disposition of properties and write-offs ( 8,542 ) ( 10,924 ) Balance at end of year $ 466,553 $ 384,480 9 Table of Contents Exhibit Index Exhibit Number Exhibit Description 3.1 Articles of Amendment and Restatement of Registrant, as amended (previously filed as Exhibit 3.1 to Amendment No. 2 to the Registrant’s Registration Statement on Form S-11 on January 6, 2010 and incorporated herein by reference). 3.2 Articles Supplementary for Registrant’s 7.75% Series A Cumulative Redeemable Preferred Stock (previously filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K on July 19, 2012 and incorporated herein by reference). 3.3 Articles Supplementary (previously filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K on February 9, 2017 and incorporated herein by reference). 3.4 Amended and Restated Bylaws of Registrant (previously filed as Exhibit 3.2 to Amendment No. 2 to the Registrant’s Registration Statement on Form S-11 on January 6, 2010 and incorporated herein by reference). 3.5 First Amendment to Amended and Restated Bylaws of Registrant (previously filed as Exhibit 3.2 to the Registrant’s Current Report on Form 8-K on February 9, 2017 and incorporated herein by reference). 4.1 Specimen Common Stock Certificate of Registrant (previously filed as Exhibit 4.1 to Amendment No. 3 to the Registrant’s Registration Statement on Form S-11 on January 15, 2010 and incorporated herein by reference). 4.2 Description of Securities of Registrant (previously filed as Exhibit 4.2 to the Registrant’s Annual Report on Form 10-K on February 6, 2020 and incorporated herein by reference). 10.1+ Amended and Restated Severance Agreement between Registrant and W. Blake Baird, dated as of February 18, 2014 (previously filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K on February 19, 2014 and incorporated herein by reference). 10.2+ Amended and Restated Severance Agreement between Registrant and Michael A. Coke dated as of February 18, 2014 (previously filed as Exhibit 10.2 to the Registrant’s Current Report on Form 8-K on February 19, 2014 and incorporated herein by reference). 10.3+ Severance Agreement between Registrant and Jaime J. Cannon dated as of February 18, 2014 (previously filed as Exhibit 10.3 to the Registrant’s Current Report on Form 8-K on February 19, 2014 and incorporated herein by reference). 10.4+ Amended and Restated 2010 Equity Incentive Plan of Registrant (previously filed as Appendix A to the Registrant’s Definitive Proxy Statement on Schedule 14A on March 19, 2014 and incorporated herein by reference). 10.5+ Form of Restricted Stock Award Agreement for Executive Officers and Employees (previously filed as Exhibit 10.4 to Amendment No. 2 to the Registrant’s Registration Statement on Form S-11 on January 6, 2010 and incorporated herein by reference). 10.6+ Form of Restricted Stock Award Agreement for Non-Employee Directors (previously filed as Exhibit 10.5 to Amendment No. 2 to the Registrant’s Registration Statement on Form S-11 on January 6, 2010 and incorporated herein by reference). 10.7+ 2019 Equity Incentive Plan of Registrant (previously filed as Exhibit 4.7 to the Registrant’s Registration Statement on Form S-8 on April 30, 2019 and incorporated herein by reference). 10.8+ Form of Restricted Stock Award Agreement for Executive Officers and Employees (previously filed as Exhibit 4.8 to the Registrant’s Registration Statement on Form S-8 on April 30, 2019 and incorporated herein by reference). 10.9+ Form of Indemnification Agreement between Registrant and its Directors and Executive Officers (previously filed as Exhibit 10.6 to Amendment No. 2 to the Registrant’s Registration Statement on Form S-11 on January 6, 2010 and incorporated herein by reference). 10.10+ Amended and Restated Long-Term Incentive Plan of Registrant effective as of January 1, 2019 (previously filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K on January 14, 2019 and incorporated by reference herein). 10.11+ Form of Award Notice under the Amended and Restated Long-Term Incentive Plan of Registrant (previously filed as Exhibit 10.9 to the Registrant's Annual Report on Form 10-K on February 6, 2019 and incorporated by reference herein). 10.12+ Amended and Restated Long-Term Incentive Plan of Registrant, effective as of January 1, 2014 (previously filed as Exhibit 10.4 to the Registrant’s Current Report on Form 8-K on February 19, 2014 and incorporated by reference herein). 10 Table of Contents 10.13+ Form of Award Notice under the Long-Term Incentive Plan of Registrant (previously filed as Exhibit 10.8 to Amendment No. 2 to the Registrant’s Registration Statement on Form S-11 on January 6, 2010 and incorporated by reference herein). 10.14 Sixth Amended and Restated Senior Credit Agreement, dated as of August 20, 2021, among Terreno Realty LLC, KeyBank National Association, both individually as a “Lender” and as “Administrative Agent”, MUFG Union Bank, N.A., as co-syndication agent and joint lead arranger, PNC Bank, National Association, as co-syndication agent, PNC Capital Markets LLC, as joint lead arranger, Regions Bank, as co-syndication agent, Regions Capital Markets, as joint lead arranger and the several banks, financial institutions and other entities which may from time to time become parties as additional “Lenders” (previously filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K on August 26, 2021 and incorporated herein by reference). 10.15 First Amendment, dated as of June 29, 2022, to the Sixth Amended and Restated Senior Credit Agreement, among Terreno Realty LLC, as “Borrower”, KeyBank National Association, both individually as a “Lender” and as “Administrative Agent”, MUFG Union Bank, N.A., as co-syndication agent and joint lead arranger, PNC Bank, National Association, as co-syndication agent, PNC Capital Markets LLC, as joint lead arranger, Regions Bank, as co-syndication agent, Regions Capital Markets, as joint lead arranger and the several banks, financial institutions and other entities which may from time to time become parties as additional “Lenders” (previously filed as Exhibit 10.1 to the Registrant's Current Report on Form 8-K on July 5, 2022 and incorporated herein by reference). 10.16 Second Amendment, dated as of September 2, 2022, to the Sixth Amended and Restated Senior Credit Agreement, among Terreno Realty LLC, as “Borrower”, KeyBank National Association, both individually as a “Lender” and as “Administrative Agent”, MUFG Union Bank, N.A., as co-syndication agent and joint lead arranger, PNC Bank, National Association, as co-syndication agent, PNC Capital Markets LLC, as joint lead arranger, Regions Bank, as co-syndication agent, Regions Capital Markets, as joint lead arranger and the several banks, financial institutions and other entities which may from time to time become parties as additional “Lenders” (previously filed as Exhibit 10.1 to the Registrant's Current Report on Form 8-K on September 6, 2022 and incorporated herein by reference). 10.17 Third Amendment, dated as of September 24, 2024, to the Sixth Amended and Restated Senior Credit Agreement, among Terreno Realty LLC, as “Borrower”, KeyBank National Association, both individually as a “Lender” and as “Administrative Agent”, KeyBanc Capital Markets, PNC Capital Markets LLC, Regions Capital Markets, U.S. Bank National Association, The Huntington National Bank and Citizens National Bank, N.A., as joint lead arrangers for the Revolving Loans, PNC Bank, National Association, Regions Bank, U.S. Bank National Association, The Huntington National Bank and Citizens National Bank, N.A., as co-syndication agents for the Revolving Loans, KeyBanc Capital Markets, PNC Capital Markets LLC, Regions Capital Markets and U.S. Bank National Association, as joint lead arrangers for the Term A Loans, PNC Bank, National Association, Regions Bank and U.S. Bank National Association, as co-syndication agents for the Term A Loans, KeyBanc Capital Markets, PNC Capital Markets LLC and Regions Capital Markets, as joint lead arrangers for the Term B Loans, PNC Bank, National Association and Regions Bank as co-syndication agents for the Term B Loans, and the several banks, financial institutions and other entities which may from time to time become parties as additional “Lenders” (previously filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K on September 30, 2024 and incorporated herein by reference). 10.18 Note Purchase Agreement, dated as of June 2, 2016, among the Registrant, Terreno Realty LLC and the institutions named in Schedule B thereto as purchasers (previously filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K on June 7, 2016 and incorporated herein by reference). 10.19 Note Purchase Agreement, dated as of September 1, 2015, among the Registrant, Terreno Realty LLC and the institutions named in Schedule B thereto as purchasers (previously filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K on September 8, 2015 and incorporated herein by reference). 10.20 Note Purchase Agreement, dated as of September 12, 2019, among the Registrant, Terreno Realty LLC and the institutions named in Schedule B thereto as purchasers (previously filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K on September 18, 2019 and incorporated herein by reference). 10.21+ Severance Agreement between the Registrant and John T. Meyer, dated as of February 18, 2014 (previously filed as Exhibit 10.14 to the Registrant’s Annual Report on Form 10-K on February 8, 2017 and incorporated herein by reference). 10.22+ Deferred Compensation Plan of Registrant (previously filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K on November 8, 2019 and incorporated herein by reference). 10.23 Note Purchase Agreement, dated as of May 13, 2021, among the Registrant, Terreno Realty LLC and the institutions named in Schedule B thereto as purchasers (previously filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K on May 18, 2021 and incorporated herein by reference). 10.24 Note Purchase Agreement, dated as of August 17, 2021, among the Registrant, Terreno Realty LLC and the institutions named in Schedule B thereto as purchasers (previously filed as Exhibit 10.1 to the Registrant's Current Report on Form 8-K on August 23, 2021 and incorporated herein by reference). 11 Table of Contents 19* Terreno Realty Corporation Insider Trading Policy, including Special Trading Procedures for Insiders. 21* Subsidiaries of Registrant. 23* Consent of Independent Registered Public Accounting Firm. 24.1* Power of Attorney (included on the signature page to this Annual Report on Form 10-K). 31.1* Rule 13a-14(a)/15d-14(a) Certification dated February 5, 2025. 31.2* Rule 13a-14(a)/15d-14(a) Certification dated February 5 , 202 5 . 31.3* Rule 13a-14(a)/15d-14(a) Certification dated February 5, 2025. 32.1** 18 U.S.C. § 1350 Certification dated February 5, 2025. 32.2** 18 U.S.C. § 1350 Certification dated February 5, 2025. 32.3** 18 U.S.C. § 1350 Certification dated February 5, 2025. 97 Terreno Realty Corporation Compensation Recovery Policy (previously filed as Exhibit 97 to the Registrant's Annual Report on Form 10-K on February 7, 2024 and incorporated herein by reference). 101.SCH* Inline XBRL Taxonomy Extension Schema Document 101.CAL* Inline XBRL Taxonomy Extension Calculation Linkbase Document 101.LAB* Inline XBRL Taxonomy Extension Label Linkbase Document 101.PRE* Inline XBRL Taxonomy Extension Presentation Linkbase Document 101.DEF* Inline XBRL Taxonomy Definition Linkbase Document 104* Cover Page Interactive Data File (formatted as inline XBRL and with applicable taxonomy extension information contained in Exhibits 101.*) ________________ * Filed herewith. ** Furnished herewith. + Exhibit is a management contract or compensatory plan or arrangement. 12 Table of Contents SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Bellevue, State of Washington, on February 5, 2025. Terreno Realty Corporation By: /s/ W. Blake Baird W. Blake Baird Chairman and Chief Executive Officer Power of Attorney We, the undersigned directors of Terreno Realty Corporation hereby severally constitute and appoint W. Blake Baird and Michael A. Coke, and each of them singly, our true and lawful attorneys, with full power to them and each of them singly, to sign for us in our names in the capacities indicated below, all amendments to this report, and generally to do all things in our names and on our behalf in such capacities to enable Terreno Realty Corporation to comply with the provisions of the Securities Exchange Act of 1934, as amended, and all requirements of the Securities and Exchange Commission. 1 Table of Contents Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Signature Title Date /s/ W. Blake Baird Chairman, Chief Executive Officer and Director (Principal Executive Officer) February 5, 2025 W. Blake Baird /s/ Michael A. Coke President and Director February 5, 2025 Michael A. Coke /s/ Jaime J. Cannon Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) February 5, 2025 Jaime J. Cannon /s/ Gary N. Boston Director February 5, 2025 Gary N. Boston /s/ LeRoy E. Carlson Director February 5, 2025 LeRoy E. Carlson /s/ Constance von Muehlen Director February 5, 2025 Constance von Muehlen /s/ Irene H. Oh Director February 5, 2025 Irene H. Oh /s/ Douglas M. Pasquale Director February 5, 2025 Douglas M. Pasquale /s/ Dennis Polk Director February 5, 2025 Dennis Polk 2