Cash flow conversion appears mixed, as evidenced by the FFO to Net Income ratio fluctuating to 0.44 in 2025Q4, while recurring capital expenditures peaked at $47.9 million in 2025Q1.
| 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 | 272.36M | 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 % | 45.59% | 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 % | 55.54% | 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 | 424.3M | 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 | 99.85M | 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 | 13.47M | 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 | -269.26M | -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 | 4.32M | 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 | -502.23M | -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) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -229.48M | 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 | 165.98M | 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 | -355.83M | -388.98M | 0 | 0 | 0 | 0 | 15.91M | 0 | -54.1M | 0 | 0 | 0 | 0 | -265K | -218K | -1.29M | 19.9M |
| Cash from Financing | 161.3M | 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 | -209.15M | -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 | -155.02M | -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 | -3.68M | 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 | -632K | -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 | -68.57M | 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 | 88.56M | 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 | 203.22M | 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 % | 35.18% | 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 % | 41.44% | 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% |
Geographic concentration and liquidity
According to the provided quarterly data, Terreno's dividend payout ratio relative to AFFO has fluctuated significantly, reaching a low of 0.27 in 2025Q4, which suggests that the company maintains a substantial buffer for its distributions despite the inherent volatility in its recurring cash flow generation.
The wide variance in the dividend-to-AFFO ratio indicates that while the dividend appears well-covered on an annual basis, quarterly cash availability is sensitive to the timing of leasing activity and capital expenditures. Investors should monitor whether this payout ratio remains stable as the company continues to deploy capital into its infill redevelopment pipeline.
As reported in financial statements, Terreno's recurring capital expenditures, including tenant improvements and leasing commissions, reached a peak of $47.9 million in 2025Q1, highlighting the intensive nature of maintaining high-barrier, small-bay industrial assets in competitive coastal markets where tenant turnover requires significant reinvestment.
The substantial quarterly fluctuations in capital outflows suggest that the company's AFFO is heavily impacted by the timing of lease renewals and property upgrades. This pattern warrants further investigation into whether these expenditures are truly recurring maintenance or if they represent value-add investments that should be treated differently in cash flow modeling.
Based on reported figures, the ratio of FFO to Net Income has shown extreme volatility, ranging from 0.44 in 2025Q4 to 1.91 in 2024Q3, which suggests that GAAP net income is frequently distorted by non-recurring gains from property dispositions rather than reflecting core operational performance.
The reliance on FFO as a primary performance metric is essential here, as the GAAP net income figures appear to be heavily influenced by the company's active asset recycling strategy. Analysts should be cautious of interpreting headline net income growth as a proxy for sustainable rental income expansion.
Analysis of the cash flow statement reveals that FFO consistently exceeds GAAP operating cash flow, a trend that may indicate significant non-cash adjustments or the capitalization of costs that would otherwise depress operating cash flow in a more conservative accounting framework.
The persistent gap between FFO and operating cash flow suggests that the company's cash-based earnings are not perfectly aligned with the cash actually generated from operations. This discrepancy may indicate that the company is aggressively capitalizing leasing costs, which could mask the true cash cost of maintaining its portfolio.
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.