Wed, May 7, 8:03 PM (15 days ago)
**Terreno Realty Corporation (TRNO) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q1 2025 revenue was $110.42 million, up 29.9% from $85.03 million in Q1 2024. - **Net Income:** Net income increased by 33.5% to $48.13 million from $36.06 million. - **Earnings per Share (EPS):** Basic EPS was $0.48, up from $0.40 in Q1 2024. - **Profit Margins:** Operating margins and net margins improved, reflecting better cost management and higher revenues. - **Cash Flow:** Operating cash flow was $61.43 million, up from $47.04 million, indicating strong operational efficiency. - **Debt:** Total debt was $741.91 million, with a weighted average interest rate of 3.8%. - **Liquidity:** Cash and cash equivalents were $156.50 million, ensuring sufficient liquidity for operations and investments. **Key Metrics and Trends:** - **Revenue Growth:** Driven by new and renewed leases, and property acquisitions. - **Operating Expenses:** Increased by 37.7% due to property acquisitions and higher insurance premiums. - **Depreciation and Amortization:** Rose by 28.6% due to property acquisitions. - **General and Administrative Expenses:** Increased by 11.6% due to higher compensation and employee counts. - **Interest Income:** Decreased by 57.7% due to lower cash balances and interest rates. - **Interest Expense:** Increased by 51.3% due to higher capitalized interest for development properties. - **Gain on Sales:** Increased by 107.2% due to property sales gains. **Quarterly Performance Discussion:** - **Revenue Increase:** Primarily due to new and renewed leases and property acquisitions. - **Operating Expenses:** Higher due to property acquisitions and increased insurance premiums. - **Cash Flow:** Positive operating cash flow indicates strong operational performance. - **Debt Management:** Maintained a conservative capital structure with a focus on long-term debt and equity issuances. **Uncertainties and Future Operations:** - **Economic Conditions:** Potential impacts from trade policies, tariffs, and economic volatility. - **Interest Rates:** Fluctuations in interest rates may affect financing costs. - **Property Market:** Dependence on the industrial real estate market and tenant retention. - **Development Risks:** Construction delays, supply chain disruptions, and inflation may impact development projects. **Conclusion:** Terreno Realty Corporation demonstrated strong financial performance in Q1 2025, with significant revenue growth, improved profit margins, and robust cash flow. The company continues to focus on strategic acquisitions, development projects, and maintaining a conservative capital structure to support future growth. However, economic uncertainties and market conditions remain key factors to monitor.