Terreno Realty CorpTRNO
Terreno Realty Corp Debt Disclosure
Debt
The following table summarizes the components of the Company’s indebtedness as of December 31, 2025 and 2024 (dollars in thousands):
| December 31, 2025 | December 31, 2024 | Margin Above SOFR | Interest Rate 1 | Contractual Maturity Date | ||||||||||||||||||||||||||||
| Unsecured Debt: | ||||||||||||||||||||||||||||||||
| Credit Facility | $ | 200,000 | $ | 82,000 | 1.1% 2 | 4.8 | % | 1/15/2029 | ||||||||||||||||||||||||
5-Year Term Loan | 100,000 | 100,000 | 1.3% 2 | 5.0 | % | 1/15/2027 | ||||||||||||||||||||||||||
5-Year Term Loan | 100,000 | 100,000 | 1.3% 2 | 5.1 | % | 1/15/2028 | ||||||||||||||||||||||||||
$50M 10-Year Unsecured 3 | 50,000 | 50,000 | n/a | 4.0 | % | 7/7/2026 | ||||||||||||||||||||||||||
$50M 12-Year Unsecured 3 | 50,000 | 50,000 | n/a | 4.7 | % | 10/31/2027 | ||||||||||||||||||||||||||
$100M 7-Year Unsecured 3 | 100,000 | 100,000 | n/a | 2.4 | % | 7/15/2028 | ||||||||||||||||||||||||||
$100M 10-Year Unsecured 3 | 100,000 | 100,000 | n/a | 3.1 | % | 12/3/2029 | ||||||||||||||||||||||||||
$125M 9-Year Unsecured 3 | 125,000 | 125,000 | n/a | 2.4 | % | 8/17/2030 | ||||||||||||||||||||||||||
$50M 10-Year Unsecured 3 | 50,000 | 50,000 | n/a | 2.8 | % | 7/15/2031 | ||||||||||||||||||||||||||
| Total Unsecured Debt | 875,000 | 757,000 | ||||||||||||||||||||||||||||||
| Secured Debt: | ||||||||||||||||||||||||||||||||
| 280 Richards Street | 72,879 | 72,879 | n/a | 3.9 | % | 3/1/2028 | ||||||||||||||||||||||||||
| Total Secured Debt | 72,879 | 72,879 | ||||||||||||||||||||||||||||||
| Total Unsecured and Secured Debt | 947,879 | 829,879 | ||||||||||||||||||||||||||||||
| Less: Unamortized fair value adjustment and debt issuance costs | (4,543) | (6,442) | ||||||||||||||||||||||||||||||
| Total | $ | 943,336 | $ | 823,437 | ||||||||||||||||||||||||||||
1Reflects the contractual interest rate under the terms of each loan as of December 31, 2025. Excludes the effects of unamortized debt issuance costs.
2The interest rates on these loans are the Secured Overnight Financing Rate (“SOFR”) plus a SOFR margin. The SOFR margins will range from 1.10% to 1.55% (1.10% as of December 31, 2025) for the revolving credit facility and 1.25% to 1.75% (1.25% as of December 31, 2025) for the term loans, depending on the ratio of the Company’s outstanding consolidated indebtedness to the value of the Company’s consolidated gross asset value and includes a 10 basis points SOFR credit adjustment.
3Collectively, the “Senior Unsecured Notes”.
As of December 31, 2025, the Company’s Sixth Amended and Restated Senior Credit Agreement (as amended, the “Amended Facility”) consists of a $600.0 million revolving credit facility that matures in January 2029, a $100.0 million term loan that matures in January 2027 and a $100.0 million term loan that matures in January 2028. As of December 31, 2025, there were $200.0 million of borrowings outstanding on the revolving credit facility and $200.0 million of borrowings outstanding on the term loans. As of December 31, 2024, there were $82.0 million of borrowings outstanding on the revolving credit facility and $200.0 million of borrowings outstanding on the term loans.
As of December 31, interest on the Amended Facility, including the term loans, is generally to be paid based upon, at the Company’s option, either (i) SOFR plus the applicable SOFR margin or (ii) the applicable base rate, which is the greatest of the administrative agent’s prime rate, 0.50% above the federal funds effective rate, thirty-day SOFR plus the applicable SOFR margin for SOFR rate loans under the Amended Facility plus 1.25%, or 1.25% per annum. The applicable SOFR margin will range from 1.10% to 1.55% (1.10% as of December 31, 2025) for the revolving credit facility and 1.25% to 1.75% (1.25% as of December 31, 2025) for the term loans, depending on the ratio of the Company’s outstanding consolidated indebtedness to the value of the Company’s consolidated gross asset value and includes a 10 basis points SOFR credit adjustment. The Amended Facility requires quarterly payments of an annual facility fee in an amount ranging from 0.15% to 0.30%, depending on the ratio of the Company’s outstanding consolidated indebtedness to the value of the Company’s consolidated gross asset value.
On January 7, 2026, the Company entered into the Fourth Amendment to the Amended Facility (the “Fourth Amendment”) adding a $200.0 million term loan maturing on January 15, 2031. Following the Fourth Amendment, the Amended Facility consists of a $600.0 million revolving credit facility that matures in January 2029, a $100.0 million term loan that matures in January 2027, a $100.0 million term loan that matures in January 2028, and a $200.0 million term loan that matures in January 2031. Additionally, the Amended Facility includes an accordion feature pursuant to which the aggregate amount of the Amended Facility may be increased by up to an additional $1.0 billion to a maximum aggregate amount not to exceed
$2.0 billion, subject to the approval of the administrative agent and the identification of lenders willing to make available additional amounts. Outstanding borrowings under the Fourth Amendment are limited to the lesser of (i) the sum of the $600.0 million revolving credit facility, the $100.0 million term loan maturing in January 2027, the $100.0 million term loan maturing in January 2028, and the $200.0 million term loan maturing in January 2031 or (ii) 60.0% of the value of the unencumbered properties. See also, “Note 12. Subsequent Events” below.
The Amended Facility and the Senior Unsecured Notes are guaranteed by the Company and by substantially all of the current and to-be-formed subsidiaries of the Company that own an unencumbered property. The Amended Facility and the Senior Unsecured Notes are not secured by the Company’s properties or by interests in the subsidiaries that hold such properties. The Amended Facility and the Senior Unsecured Notes include a series of financial and other covenants with which the Company must comply. The Company was in compliance with the covenants under the Amended Facility and the Senior Unsecured Notes as of December 31, 2025 and 2024.
As of December 31, 2025 and 2024, the Company had one mortgage loan payable totaling approximately $70.3 million and $69.1 million, respectively, net of deferred financing costs of $0.1 million and $0.2 million, respectively, and unamortized fair value adjustment of approximately $2.5 million and $3.6 million, respectively, which bore interest at a weighted average fixed annual rate of 3.9%. The mortgage loan payable is collateralized by one property, is non-recourse and requires monthly interest payments until it matures in March 2028.
The scheduled principal payments of the Company’s debt as of December 31, 2025 were as follows (dollars in thousands):
| Credit Facility | Term Loan | Senior Unsecured Notes | Mortgage Loan Payable | Total Debt | |||||||||||||||||||||||||
| 2026 | $ | — | $ | — | $ | 50,000 | $ | — | $ | 50,000 | |||||||||||||||||||
| 2027 | — | 100,000 | 50,000 | — | 150,000 | ||||||||||||||||||||||||
| 2028 | — | 100,000 | 100,000 | 72,879 | 272,879 | ||||||||||||||||||||||||
| 2029 | 200,000 | — | 100,000 | — | 300,000 | ||||||||||||||||||||||||
| 2030 | — | — | 125,000 | — | 125,000 | ||||||||||||||||||||||||
| Thereafter | — | — | 50,000 | — | 50,000 | ||||||||||||||||||||||||
| Subtotal | 200,000 | 200,000 | 475,000 | 72,879 | 947,879 | ||||||||||||||||||||||||
| Unamortized fair value adjustment | — | — | — | (2,456) | (2,456) | ||||||||||||||||||||||||
| Total Debt | 200,000 | 200,000 | 475,000 | 70,423 | 945,423 | ||||||||||||||||||||||||
| Deferred financing costs, net | — | (384) | (1,578) | (125) | (2,087) | ||||||||||||||||||||||||
| Total Debt, net | $ | 200,000 | $ | 199,616 | $ | 473,422 | $ | 70,298 | $ | 943,336 | |||||||||||||||||||
| Weighted average interest rate | 4.8% | 5.1% | 3.0% | 3.9% | 3.9% | ||||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 4, 2026 | Showing above |
| 2024 | Feb 5, 2025 | |
| 2023 | Feb 7, 2024 | |
| 2022 | Feb 8, 2023 | |
| 2021 | Feb 9, 2022 | |
| 2020 | Feb 10, 2021 | |
| 2018 | Feb 6, 2019 | |
| 2016 | Feb 8, 2017 | |
| 2015 | Feb 10, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.