Terreno Realty Corp 10-K

Item 2. Properties. As of December 31, 2025, we owned a total of 309 buildings (including one building held for sale) aggregating approximately 19.8 million square feet, 46 improved land parcels consisting of approximately 147.0 acres and six properties under development or redevelopment. As of December 31, 2025, the buildings and improved land parcels were approximately 96.1% and 95.4% leased, respectively, to 683 customers, the largest of which accounted for approximately 4.9% of our total annualized base rent. The properties are located in New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle, and Washington, D.C. We invest in several types of industrial real estate, including warehouse/distribution buildings, flex buildings (including light industrial and research and development, or R&D), transshipment buildings and improved land parcels. See “Item 1 – Our Investment Strategy – Industrial Facility General Characteristics” in this Annual Report on Form 10-K for a general description of these types of industrial real estate. We target functional buildings in infill locations that may be shared by multiple tenants and that cater to customer demand within the various submarkets in which we operate. Infill locations are geographic locations surrounded by high concentrations of already developed land and existing buildings. See our “Consolidated Financial Statements, Schedule III-Real Estate Investments and Accumulated Depreciation” in this Annual Report on Form 10-K for a detailed listing of our properties. The following table summarizes by type our investments in real estate as of December 31, 2025: Type Number of Buildings or Improved Land Parcels Annualized Base Rent (in thousands) 1 % of Total Warehouse/distribution 271 $ 287,366 80.5 % Flex 16 12,043 3.4 % Transshipment 22 21,392 6.0 % Improved land 46 35,918 10.1 % Total 355 $ 356,719 100.0 % 1 Annualized base rent is calculated as contractual monthly base rent per the leases, excluding any partial or full rent abatements, as of December 31, 2025, multiplied by 12. 25 Table of Contents The following table summarizes by market our investments in real estate as of December 31, 2025: New York City/Northern New Jersey Los Angeles Miami San Francisco Bay Area Seattle Washington, D.C. Total/Weighted Average Investments in Real Estate Number of Buildings 68 61 41 57 54 28 309 Rentable Square Feet 3,545,337 2,626,153 4,659,694 3,208,440 3,556,981 2,180,643 19,777,248 % of Total 17.9 % 13.3 % 23.6 % 16.2 % 18.0 % 11.0 % 100.0 % Occupancy % as of December 31, 2025 93.0 % 99.5 % 92.2 % 99.3 % 98.3 % 97.1 % 96.1 % Annualized Base Rent (in thousands) 1 $ 80,447 $ 45,413 $ 57,653 $ 55,895 $ 49,040 $ 32,353 $ 320,801 % of Total 25.0 % 14.2 % 18.0 % 17.4 % 15.3 % 10.1 % 100.0 % Annualized Base Rent 1 Per Occupied Square Foot $ 24.41 $ 17.38 $ 13.42 $ 17.54 $ 14.02 $ 15.29 $ 16.88 Weighted Average Remaining Lease Term (Years) 2 3.8 5.7 5.3 3.6 2.8 2.3 4.0 Investments in Improved Land Number of Land Parcels 14 13 3 5 9 2 46 Acres 62.8 28.8 9.9 14.4 23.8 7.3 147.0 % of Total 42.7 % 19.6 % 6.7 % 9.8 % 16.2 % 5.0 % 100.0 % Occupancy % as of December 31, 2025 99.5 % 89.1 % 100.0 % 100.0 % 85.7 % 100.0 % 95.4 % Annualized Base Rent (in thousands) 1 $ 14,488 $ 9,351 $ 2,235 $ 3,092 $ 5,289 $ 1,463 $ 35,918 % of Total 40.4 % 26.0 % 6.2 % 8.6 % 14.7 % 4.1 % 100.0 % Annualized Base Rent 1 Per Occupied Square Foot $ 5.32 $ 8.36 $ 5.19 $ 4.91 $ 5.95 $ 4.61 $ 5.88 Weighted Average Remaining Lease Term (Years) 2 2.9 3.1 8.0 4.9 5.1 7.5 4.0 Total Investments in Real Estate and Improved Land Annualized Base Rent (in thousands) 1 $ 94,935 $ 54,764 $ 59,888 $ 58,987 $ 54,329 $ 33,816 $ 356,719 % of Total Annualized Base Rent 1 26.6 % 15.4 % 16.8 % 16.5 % 15.2 % 9.5 % 100.0 % Gross Book Value (in thousands) 3 $ 1,438,995 $ 893,011 $ 1,239,864 $ 848,508 $ 889,552 $ 483,965 $ 5,793,895 % of Total Gross Book Value 24.8 % 15.4 % 21.4 % 14.6 % 15.4 % 8.4 % 100.0 % 1 Annualized base rent is calculated as contractual monthly base rent per the leases, excluding any partial or full rent abatements, as of December 31, 2025, multiplied by 12. Annualized base rent for our New York City assets was $46.8 million as of December 31, 2025, representing approximately 13.1% of total annualized base rent. 2 Weighted average remaining lease term is calculated by summing the remaining lease term of each lease as of December 31, 2025, weighted by the respective square footage. 3 Includes six properties under development or redevelopment that, upon completion, will consist of nine buildings aggregating approximately 1.2 million square feet. As of December 31, 2025, we owned six properties under development or redevelopment that, upon completion, will consist of nine buildings aggregating approximately 1.2 million square feet, with a total expected investment of approximately $372.5 million, including redevelopment costs, capitalized interest and other costs. 26 Table of Contents The following table summarizes our capital expenditures incurred during the three months and years ended December 31, 2025 and 2024 (dollars in thousands): For the Three Months Ended December 31, For the Year Ended December 31, 2025 2024 2025 2024 Operating portfolio: Recurring capital expenditures $ 18,205 $ 8,698 $ 47,832 $ 34,985 Non-recurring capital expenditures 1 8,142 4,834 16,225 15,795 Total 26,347 2 13,532 2 64,057 3 50,780 3 Properties under development and redevelopment: Development, redevelopment, renovation and expansion expenditures 11,634 16,628 59,546 118,587 Capitalized interest 4 1,202 2,321 5,011 10,977 Total $ 12,836 5 $ 18,949 5 $ 64,557 6 $ 129,564 6 1 Consists of costs incurred related to leasing acquired vacancy, renovation, and expansion projects (stabilization capital). 2 Includes a net increase in accrued capital expenditures for the operating portfolio of approximately $5.9 million during the three months ended December 31, 2025 and a net increase of approximately $4.0 million during the three months ended December 31, 2024. 3 Includes a net increase in accrued capital expenditures for the operating portfolio of approximately $0.7 million during the year ended December 31, 2025 and a net increase of approximately $10.8 million during the year ended December 31, 2024. 4 Consists of capitalized interest associated with development, redevelopment, renovation and expansion activities. We do not capitalize any general and administrative costs associated with these activities. 5 Includes a net increase in accrued capital expenditures for properties under development and redevelopment of approximately $1.5 million during the three months ended December 31, 2025 and a net decrease of approximately $5.6 million during the three months ended December 31, 2024. 6 Includes a net decrease in accrued capital expenditures for properties under development and redevelopment of approximately $5.4 million during the year ended December 31, 2025 and a net decrease of approximately $3.2 million during the year ended December 31, 2024. Our industrial properties are typically subject to leases on a “triple net basis,” in which tenants pay their proportionate share of real estate taxes, insurance and operating costs, or are subject to leases on a “modified gross basis,” in which tenants pay expenses over certain threshold levels. In addition, approximately 96.8% of our leased space includes fixed rental increases or Consumer Price Index-based rental increases. Lease terms typically range from three to ten years. We monitor the liquidity and creditworthiness of our tenants on an ongoing basis by reviewing outstanding accounts receivable balances, and as provided under the respective lease agreements, review the tenant’s financial condition periodically as appropriate. As needed, we hold discussions with the tenant’s management about their business and we conduct site visits of the tenant’s operations. 27 Table of Contents Our top 20 customers based on annualized base rent as of December 31, 2025 are as follows: Customer Leases Rentable Square Feet % of Total Rentable Square Feet Improved Land Acreage Annualized Base Rent (in thousands) 1 % of Total Annualized Base Rent 2 1 Amazon.com 5 783,880 4.0 % — $ 17,585 4.9 % 2 FedEx Corporation 6 645,677 3.2 % 7.7 7,788 2.1 % 3 Quanta Manufacturing Nashville LLC 1 225,861 1.1 % — 4,879 1.4 % 4 Imperial Bag & Paper Co LLC 1 505,729 2.6 % — 4,870 1.3 % 5 Danaher 3 171,707 0.9 % — 4,739 1.3 % 6 United States Government 9 316,796 1.6 % — 4,627 1.3 % 7 District of Columbia 8 245,888 1.2 % — 3,803 1.1 % 8 MD Turbines Inc. 2 284,161 1.4 % — 3,701 1.0 % 9 Fisica Inc. (previously L3 Harris Applied Technologies, Inc.) 1 279,032 1.4 % 2.3 3,640 1.0 % 10 International Cargo Terminals Inc. 1 31,601 0.2 % — 3,501 1.0 % 11 Motivate LLC 3 101,234 0.5 % — 3,169 0.9 % 12 Home Depot U.S.A., Inc. 1 134,400 0.7 % — 2,905 0.8 % 13 Impulse Space, Inc. 1 103,200 0.5 % — 2,848 0.8 % 14 Costco-Innovel Solutions LLC 2 328,716 1.7 % 2.8 2,760 0.8 % 15 Lucid USA, Inc. 1 161,680 0.8 % 2,756 0.8 % 16 Sentury Tire USA Inc. 1 161,787 0.8 % — 2,710 0.8 % 17 Port Kearny Security, Inc. 1 733,943 3.7 % 16.9 2,546 0.7 % 18 Sarcona Management Corporation 2 222,157 1.1 % 4.9 2,474 0.7 % 19 Triton Logistics Inc. 1 190,907 1.0 % — 2,426 0.7 % 20 F. W. Webb Company 1 33,414 0.2 % — 2,400 0.7 % Total 51 5,661,770 28.6 % 34.6 $ 86,127 24.1 % 1 Annualized base rent is calculated as contractual monthly base rent per the leases, excluding any partial or full rent abatements, as of December 31, 2025, multiplied by 12. 2 Total annualized base rent is calculated as 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, 2025, multiplied by 12. As of December 31, 2025, one of our properties with a net book value of approximately $176.0 million was 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, 2025 was approximately $2.5 million. The following tables summarize the anticipated lease expirations for leases in place as of December 31, 2025, without giving effect to the exercise of unexercised renewal options or termination rights, if any, at or prior to the scheduled expirations: Buildings: Year Rentable Square Feet % of Total Rentable Square Feet Annualized Base Rent (in thousands) 2 % of Total Annualized Base Rent 3 2026 1 3,608,078 18.2 % $ 57,835 14.3 % 2027 2,869,933 14.5 % 49,443 12.2 % 2028 2,570,399 13.0 % 53,558 13.2 % 2029 2,543,753 12.9 % 51,727 12.8 % 2030 2,056,514 10.4 % 37,890 9.4 % Thereafter 5,356,362 27.1 % 113,622 28.0 % Total 19,005,039 96.1 % $ 364,075 89.9 % 28 Table of Contents Improved Land Parcels: Year Improved Land Acreage % of Total Improved Land Acreage Annualized Base Rent (in thousands) 2 % of Total Annualized Base Rent 3 2026 4 20.2 13.7 % $ 5,808 1.4 % 2027 14.5 9.9 % 4,094 1.0 % 2028 26.4 18.0 % 7,430 1.8 % 2029 12.1 8.2 % 2,965 0.7 % 2030 30.7 20.9 % 8,662 2.1 % Thereafter 36.3 24.7 % 11,967 3.1 % Total 140.2 95.4 % $ 40,926 10.1 % Total Buildings and Improved Land Parcels: Year Total Annualized Base Rent (in thousands) 3 % of Total Annualized Base Rent 3 2026 5 $ 63,643 15.7 % 2027 53,537 13.2 % 2028 60,988 15.0 % 2029 54,692 13.5 % 2030 46,552 11.5 % Thereafter 125,589 31.1 % Total $ 405,001 100.0 % 1 Includes leases that expire on or after December 31, 2025 and month-to-month leases totaling approximately 56,091 square feet. Approximately 0.8 million square feet of the space expiring during 2026 has either been renewed or pre-leased as of December 31, 2025. 2 Annualized base rent is calculated as contractual monthly base rent per the leases at expiration, excluding any partial or full rent abatements, as of December 31, 2025, multiplied by 12. 3 Total annualized base rent is calculated as contractual monthly base rent per the leases at expiration, for all buildings and/or improved land parcels, excluding any partial or full rent abatements, as of December 31, 2025, multiplied by 12. 4 Includes leases that expire on or after December 31, 2025 and month-to-month leases totaling approximately 2.4 acres. 5 Includes leases that expire on or after December 31, 2025 and month-to-month leases disclosed in footnotes 1 and 4 of the table. Our ability to re-lease or renew expiring space at rental rates equal to or in excess of current rental rates will impact our results of operations. As of December 31, 2025, leases representing approximately 15.7% of the total annualized base rent of our portfolio are scheduled to expire during the year ending December 31, 2026. We currently expect that, on average, the rental rates we are likely to achieve on new (re-leased) or renewed leases for our 2026 expirations will be above the rates currently being paid for the same space. Cash rent changes on new and renewed leases totaling approximately 0.7 million square feet commencing during the three months ended December 31, 2025 were approximately 29.8% higher as compared to the previous rental rates for that same space, and cash rent changes on new and renewed leases totaling approximately 2.7 million square feet and 24.4 acres of improved land commencing during the year ended December 31, 2025 were approximately 25.4% higher as compared to the previous rental rates for that same space. We had a tenant retention ratio for the operating portfolio of 67.9% and 70.2%, respectively, for the three months and year ended December 31, 2025. We had a tenant retention ratio for the improved land portfolio of 0% and 74.1%, respectively, for the three months and year ended December 31, 2025. We define tenant retention ratio as the square footage or acreage of all leases commenced during the period that are rented by existing tenants divided by the square footage or acreage of all expiring leases during the reporting period. The square footage or acreage of tenants that default or buy-out prior to expiration of their lease and short-term leases of less than one year are not included in the calculation. 29 Table of Contents Our past performance may not be indicative of future results, and we cannot assure you that leases will be renewed or that our properties will be re-leased at all or at rental rates equal to or above the current average rental rates. Further, re-leased/renewed rental rates in a particular market may not be consistent with rental rates across our portfolio as a whole and re-leased/renewed rental rates for particular properties within a market may not be consistent with rental rates across our portfolio within a particular market, in each case due to a number of factors, including local real estate conditions, local supply and demand for industrial space, the condition of the property, the impact of leasing incentives, including free rent and tenant improvements, and whether the property, or space within the property, has been redeveloped. Item 3. Legal Proceedings. We are not involved in any material litigation nor, to our knowledge, is any material litigation threatened against us. Item 4. Mine Safety Disclosures. Not Applicable. 30 Table of Contents PART II