AFFO of $28.4M in 2026Q2 covered only 26% of dividends paid, and capital expenditures surged to $66.7M, highlighting a cash flow strain that may pressure future distributions.
Terreno Realty Corporation (TRNO) cash flow statement — 16-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 |
|---|
| Cash from Operations | 348.57M | 271.86M | 232.69M | 179.68M | 143.21M | 132.21M | 101.05M | 94.69M | 77.6M | 69.5M | 49.24M | 42.07M | 29.32M | 13.49M | 9.75M | 2.15M | -2.21M |
| Operating CF Growth % | 177.03% | 16.84% | 29.5% | 25.46% | 8.32% | 30.83% | 6.72% | 22.02% | 11.66% | 41.14% | 17.05% | 43.47% | 117.27% | 38.42% | 353.65% | 197.15% | - |
| Operating CF / Revenue % | 69.32% | 57.07% | 60.81% | 55.53% | 51.85% | 59.57% | 54.07% | 55.37% | 51.17% | 52.46% | 45.42% | 43.87% | 42.57% | 29.64% | 31.27% | 12.28% | -54.87% |
| Net Income | 388.59M | 402.99M | 184.5M | 151.46M | 198.01M | 87.25M | 79.8M | 55.52M | 63.29M | 53.09M | 15.12M | 14.6M | 10.72M | 6.74M | 4.57M | -3.12M | -5.39M |
| Depreciation & Amortization | 135.8M | 92.28M | 76.63M | 59.3M | 49.49M | 43M | 40.45M | 39.33M | 37.12M | 35.71M | 33.06M | 34.1M | 18.07M | 11.62M | 9.13M | 4.79M | 1.55M |
| Stock-Based Compensation | 18.04M | 17.72M | 14.93M | 13.47M | 10.17M | 9.55M | 9.83M | 10.64M | 9.27M | 8.73M | 9.44M | 6.08M | 2.06M | 2.14M | 1.12M | 1.2M | 784K |
| Other Non-Cash Items | -273.15M | -250.44M | -52.92M | -45.08M | -120.15M | -23.98M | -25.79M | -10.77M | -31.02M | -33.12M | -10.88M | -14.06M | -2.46M | -5.53M | -6.25M | -1.22M | -147K |
| Working Capital Changes | 10.18M | 9.31M | 9.55M | 537K | 5.68M | 16.37M | -3.23M | -37K | -1.06M | 5.08M | 2.49M | 1.35M | 937K | -1.47M | 1.18M | 487K | 990K |
| Cash from Investing | -724.01M | -452.39M | -915.48M | -570.39M | -337.66M | -666.44M | -52.09M | -251.48M | -234.96M | -249.12M | -151.24M | -255.36M | -249.92M | -201.87M | -160.18M | -105.88M | -116.39M |
| Acquisitions (Net) | 277.26M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -103.4M | 0 | -940.94M | -590.41M | -433.2M | -644.96M | -98.09M | -238.66M | -221.81M | -297.11M | -130.11M | -283.56M | -249.92M | -209.54M | -166.04M | -96.93M | -136.04M |
| Sale of Investments | 138.28M | 0 | 71.9M | 73.08M | 162.15M | 41.08M | 70.69M | 47.13M | 79.59M | 75.4M | 21.38M | 28.21M | 0 | 17.47M | 16.29M | 0 | 0 |
| Other Investing | -910.34M | -388.98M | 0 | 0 | 0 | 0 | 15.91M | 0 | -54.1M | 0 | 0 | 0 | 0 | -265K | -218K | -1.29M | 19.9M |
| Cash from Financing | 361.74M | 187.76M | 534.91M | 528.86M | 17.73M | 631.2M | -53.87M | 235.05M | 149.04M | 203.94M | 93.76M | 45.14M | 404.21M | 189.43M | 153.11M | 49.73M | 175.85M |
| Dividends Paid | -267.95M | -203.89M | -174.97M | -135.85M | -107.41M | -84.63M | -74.78M | -63.56M | -51.45M | -43.87M | -36.75M | -31.11M | -19.34M | -13.23M | -7.1M | -2.79M | 0 |
| Common Dividends | -213.82M | -203.89M | -174.97M | -135.85M | -107.41M | -84.63M | -74.78M | -63.56M | -51.45M | -41.87M | -33.18M | -27.55M | -15.77M | -9.67M | -5.5M | -2.79M | 0 |
| Debt Issuance (Net) | -1000K | 1000K | -1000K | 0 | 1000K | 1000K | -1000K | 1000K | -201K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -180K |
| Share Repurchases | -6M | 0 | -3.34M | -1.51M | -1.04M | -582K | -9.84M | -3.96M | -3.87M | -49.44M | -1.55M | -512K | -284K | -160K | -79K | 0 | 0 |
| Other Financing | -6.51M | -4.08M | -5.8M | 0 | -1.5M | -4.03M | 0 | -943K | -1.37M | -872K | -2.5M | -1.47M | -2.54M | -723K | -1.11M | -7.64M | -882K |
| Net Change in Cash | -13.7M | 7.24M | -147.88M | 138.15M | -176.72M | 96.97M | -4.9M | 78.26M | -8.32M | 24.32M | -8.24M | -168.15M | 183.61M | 1.06M | 2.68M | -54M | 57.25M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 25.59M | 18.35M | 166.24M | 28.08M | 204.8M | 107.84M | 112.74M | 34.48M | 42.8M | 18.48M | 22.45M | 190.6M | 6.99M | 5.93M | 3.25M | 57.25M | 1K |
| Cash at End | 52.16M | 25.59M | 18.35M | 166.24M | 28.08M | 204.8M | 107.84M | 112.74M | 34.48M | 42.8M | 14.21M | 22.45M | 190.6M | 6.99M | 5.93M | 3.25M | 57.25M |
| Free Cash Flow | 222.77M | 208.46M | 186.25M | 126.62M | 76.6M | 80.92M | 69.44M | 62.62M | 48.62M | 42.09M | 22.3M | 23.22M | 9.59M | 3.96M | -463K | -94.78M | -2.21M |
| FCF Growth % | 20.5% | 11.92% | 47.09% | 65.31% | -5.34% | 16.53% | 10.89% | 28.79% | 15.51% | 88.72% | -3.95% | 142.1% | 141.98% | 956.16% | 99.51% | -4184.67% | - |
| FCF / Revenue % | 44.3% | 43.76% | 48.68% | 39.13% | 27.73% | 36.46% | 37.16% | 36.61% | 32.06% | 31.77% | 20.57% | 24.22% | 13.93% | 8.71% | -1.49% | -541.52% | -54.87% |
Quick answers to the most common questions about buying TRNO stock.
Terreno Realty Corporation (TRNO) generated $271.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Terreno Realty Corporation (TRNO) generated $208.5M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Terreno Realty Corporation (TRNO) spent $63.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Terreno Realty Corporation (TRNO) returned $203.9M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
FFO volatility from dispositions
Metrics are mathematically derived from official filings.
AFFO Coverage Strained by Capex
In 2026Q2, TRNO's AFFO of $28.4M covered only 26% of dividends paid, per reported figures, indicating a significant shortfall that may pressure future distributions.
The dividend payout ratio on an AFFO basis spiked to 3.85x in 2026Q2, far above the sustainable level of 0.5-0.7x seen in prior quarters. This suggests that either AFFO is temporarily depressed by heavy recurring capex or the dividend is being funded by other sources. Investors should monitor whether this is a one-time event or a trend, as sustained under-coverage could force a dividend cut or increased external financing.
Recurring Capex Surge in 2026Q2
TRNO's capital expenditures jumped to $66.7M in 2026Q2, up from $24.6M in Q1, as per financial statements, likely reflecting tenant improvements and leasing commissions that reduced AFFO.
The sharp increase in capex, combined with a decline in FFO, suggests that the company is investing heavily in its portfolio to maintain occupancy and rental growth. While this may support long-term value, it temporarily depresses distributable cash flow. The elevated capex may also indicate higher tenant improvement costs, which could signal increased competition for tenants or a shift in lease terms.
Depreciation and Gains Distort Earnings
TRNO's FFO exceeded net income by $37.5M in 2026Q2, according to reported data, highlighting the significant non-cash depreciation charges and gains on property sales that obscure true cash generation.
The FFO-to-net-income ratio of 1.65 in 2026Q2, up from 0.89 in Q1, reflects both depreciation add-backs and possibly large gains from dispositions. This volatility in FFO relative to net income suggests that earnings quality is affected by non-recurring items, and investors should focus on recurring FFO to assess sustainable cash flow.
Working Capital Swings Signal Timing
TRNO's operating cash flow of $136.8M in 2026Q2 was nearly double net income, as reported, suggesting favorable working capital changes, possibly from rent collections or timing of payables.
The large positive swing in OCF relative to net income may indicate that the company collected receivables or deferred payables, but such timing effects are not sustainable. The prior quarter's OCF was only $61.9M, so the volatility in OCF suggests that cash flow from operations is not a reliable indicator of recurring performance. Investors should normalize for working capital changes when assessing cash generation.
Dividend Funding Relies on External Sources
In 2026Q2, TRNO's dividends paid of $109.4M exceeded AFFO by $81M, based on reported figures, implying that the shortfall was likely funded by debt or equity issuance.
The persistent gap between dividends and AFFO in recent quarters, particularly in 2026Q2 and 2025Q1, suggests that the company may be relying on external capital to maintain its distribution. While this is common for growth-oriented REITs, it increases financial risk if capital markets tighten. Investors should assess the company's access to capital and its cost of equity relative to its dividend yield.
What the Cash Flow Statement Hides
TRNO's reported FCF of $70.2M in 2026Q2 may overstate true free cash flow, as per financial statements, because it excludes tenant improvements and leasing commissions that are capitalized.
The gap between FCF and AFFO is stark: in 2026Q2, FCF was $70.2M while AFFO was only $28.4M. This difference likely represents capitalized maintenance capex, which is a real cash outflow that reduces distributable cash. Additionally, the company's use of joint ventures or off-balance-sheet obligations could further reduce cash available to shareholders, though such details are not fully disclosed in the provided data.