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

• 97.9% quarter end occupancy compared to prior quarter of 98.1% and prior year of 98.2%
• 98.8% quarter end same store occupancy compared to prior quarter of 99.0% and prior year of 98.1%
• 19.9% increase in cash rents on new and renewed leases; 16.2% increase year-to-date
• $47.8 million of acquisitions; $110.9 million year-to-date
• 2,375,270 shares of common stock issued under ATM for gross proceeds of $108.7 million

Terreno Realty Corporation TRNO, an acquirer, owner and operator of industrial real estate in six major coastal U.S. markets, announced today its operating, investment and capital markets activity for the second quarter of 2019.

Operating

As of June 30, 2019, Terreno Realty Corporation owned 209 buildings aggregating approximately 13.0 million square feet and 17 improved land parcels consisting of approximately 74.7 acres. In addition, Terreno Realty Corporation had four properties under redevelopment that upon completion will contain approximately 612,000 square feet with a total expected investment of approximately $130 million:

• The operating portfolio, excluding four properties under redevelopment, was 97.9% leased at June 30, 2019 to 476 tenants as compared to 98.1% at March 31, 2019 and 98.2% at June 30, 2018;
• The same store portfolio of approximately 12.0 million square feet was 98.8% leased at June 30, 2019 as compared to 99.0% at March 31, 2019 and 98.1% at June 30, 2018;
• The improved land portfolio of 17 parcels totaling approximately 74.7 acres was 93.0% leased at June 30, 2019 as compared to 86.6% at March 31, 2019 and 72.9% at June 30, 2018; and
• Cash rents on new and renewed leases totaling approximately 0.6 million square feet commencing during the second quarter increased approximately 19.9%. Cash rents on new and renewed leases totaling approximately 1.6 million square feet commencing during the six months ended June 30, 2019 increased approximately 16.2%.

Investment

During the second quarter of 2019, Terreno Realty Corporation acquired two industrial properties consisting of two buildings totaling approximately 119,000 square feet on approximately 2.7 acres. 1501 Tennessee and 1400 Minnesota are located in the Dogpatch submarket of San Francisco's Central Waterfront. The two buildings provide 12 dock-high and 15 grade-level loading positions and parking for 12 cars. The properties are 100% leased to nine tenants, two of which expire within one year and all of which expire by January 2024. The properties were acquired for approximately $47.8 million with an estimated stabilized cap rate of 4.0%.

Year-to-date through the second quarter of 2019, Terreno Realty Corporation acquired five industrial properties consisting of four buildings containing approximately 165,000 square feet and two improved land parcels of approximately 19.7 acres for an aggregate purchase price of approximately $110.9 million. Year-to-date through the second quarter of 2019, Terreno Realty Corporation sold one property containing approximately 90,000 square feet for approximately $12.4 million generating an unleveraged internal rate of return of approximately 12.4%.

Terreno Realty Corporation has approximately $25.3 million of acquisitions under contract containing approximately 65,000 square feet and 2.0 acres of improved land, and approximately $114.9 million of acquisitions under letter of intent containing approximately 378,000 square feet. Terreno Realty Corporation has one 107,000 square foot property that is under redevelopment and under contract for sale for approximately $14.0 million. There is no assurance that Terreno Realty Corporation will acquire or dispose of the properties under contract or letter of intent because the proposed acquisitions and disposition are subject to the completion of satisfactory due diligence, closing conditions and, in the case of letters of intent, contracts.

Capital Markets

During the second quarter of 2019, Terreno Realty Corporation issued 2,375,270 shares of common stock with a weighted average offering price of $45.76 per share, receiving gross proceeds of $108.7 million under the Company's at-the-market equity offering program. Year-to-date through the second quarter of 2019, Terreno Realty Corporation issued 4,364,071 shares of common stock with a weighted average offering price of $43.77, receiving gross proceeds of $191.0 million under the Company's at-the-market equity offering program. Terreno Realty Corporation did not repurchase any shares of common stock pursuant to the Company's share repurchase authorization.

Additional information is available on the Company's website at www.terreno.com. Terreno Realty Corporation expects to file its quarterly report on Form 10-Q for the period ended June 30, 2019 on or about July 31, 2019.

Terreno Realty Corporation acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. We caution investors that forward-looking statements are based on management's beliefs and on assumptions made by, and information currently available to, management. When used, the words "anticipate," "believe," "estimate," "expect," "intend," "may," "might," "plan," "project," "result," "should," "will," "seek," "target," "see," "likely," "position," "opportunity," "outlook," and similar expressions which do not relate solely to historical matters are intended to identify forward-looking statements. These statements are subject to risks, uncertainties, and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control, including risks related to our ability to meet our estimated forecasts related to stabilized cap rates and those risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2018 and our other public filings. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or projected. We expressly disclaim any responsibility to update our forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Accordingly, investors should use caution in relying on past forward-looking statements, which are based on results and trends at the time they are made, to anticipate future results or trends.

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