Terreno Realty Corporation completed the sale of a 56,000‑square‑foot light industrial building in Lanham, Maryland, for $11.1 million on March 6 2026. The property sits on 4.5 acres and was 100 % leased at the time of sale. Terreno originally purchased the asset in December 2013 for $5.6 million, generating a realized gain of $5.5 million. The transaction’s unleveraged internal rate of return is 10.8%, a figure that reflects the long‑term appreciation of the asset rather than the inflated 98% figure previously reported.
The sale aligns with Terreno’s core strategy of acquiring, owning, and operating industrial real estate in six major U.S. coastal markets. By divesting a mature, fully leased asset, the company can reallocate capital to higher‑growth opportunities, maintain a balanced portfolio, and avoid the higher risk associated with greenfield development. The transaction also demonstrates Terreno’s disciplined approach to value‑add investments, where properties are acquired at a discount to replacement cost and then positioned for long‑term appreciation.
Terreno’s recent financial performance underscores the strength of its portfolio management. In Q4 2025, the REIT reported net income of $158.22 million, up from $76.10 million in Q4 2024, and Funds From Operations (FFO) per share of $0.83, compared with $0.62 in the prior year. The Lanham sale adds to this momentum by contributing a $5.5 million gain to the company’s realized earnings, reinforcing the REIT’s ability to generate cash from its assets.
Strategically, the divestiture supports Terreno’s ongoing focus on liquidity and dividend sustainability. The company declared a regular quarterly cash dividend of $0.52 per share payable on April 10 2026, and the sale’s proceeds help maintain the dividend payout ratio while providing flexibility for future acquisitions or debt reduction. The transaction also signals confidence in the company’s ability to identify and exit assets that have reached their peak value, a key component of its long‑term value creation model.
The sale is part of a broader pipeline that includes 1.2 million square feet of development or redevelopment projects expected to stabilize between 2026 and 2028. By completing the Lanham transaction, Terreno can accelerate the deployment of capital into these projects, further strengthening its position in high‑density industrial markets and supporting its growth trajectory across the six coastal regions.
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