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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#3154
Positioning
Market Dominance
Finance, Insurance, And Real Estate
Real Estate
$5.9B
W. Blake Baird
Terreno Realty Corporation acquires, owns and operates industrial real estate in six major coastal U.S. markets. As of September 30, 2020, the Company owned 219 buildings aggregating approximately 13.1 million square feet, 22 improved land parcels consisting of approximately 85.0 acres.
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = TRNO ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$SII SPROTT INC. | 75 | 91 | 87 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PUK PRUDENTIAL PLC | 73 | 88 | 97 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NMR NOMURA HOLDINGS INC | 72 | 81 | 92 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PSLV Sprott Physical Silver Trust | 69 | 82 | 80 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UFCS UNITED FIRE GROUP INC | 68 | 81 | 93 | 76 | 5.0x | 3.5x | 13.2% | 4.1% | 99.9% | 14.7% | 11.1% | 9.2% | 2.1% | 16.0x | $775M | VS | |
$SLF SUN LIFE FINANCIAL INC | 68 | 83 | 95 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CBOE Cboe Global Markets, Inc. | 68 | 75 | 63 | 77 | 21.3x | 15.7x | 24.0% | 13.7% | 41.7% | 32.4% | 26.4% | 8.2% | 1.1% | 30.0x | $25.7B | VS | |
$VTMX Vesta Real Estate Corporation, S.A.B. de C.V. | 67 | 69 | 77 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PHYS Sprott Physical Gold Trust | 67 | 64 | 82 | 91 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GLDM World Gold Trust | 66 | 54 | 85 | 92 | 11.3x | 11.3x | - | 20.9% | 100.0% | 97.1% | 554.8% | -19.0% | 0.0% | - | $32.0B | VS | |
$TRNO Terreno Realty Corp | 43 | 25 | 56 | 48 | 24.3x | 27.6x | 6.8% | 5.2% | 0.0% | 39.6% | 63.1% | 23.3% | 3.5% | 23.0x | $5.9B | ||
| SECTOR BENCH | - | - | - | - | - | 11.9x | 7.8x | 9.0% | 1.3% | 77.7% | 18.1% | 21.9% | 10.7% | 2.0% | 0.5x | - | REF |
Terreno Realty Corp (TRNO) receives a "Reduce" rating with a composite score of 42.7/100. It ranks #3154 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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In-line with peers — no strong momentum signal
Fair valuation relative to peers
Weak fundamentals — higher risk of value trap
Low volatility — smoother ride and historically better risk-adjusted returns
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Finance, Insurance, And Real Estate sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for TRNO.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 25 | 12 | +13ALPHA |
| MOMENTUM | 48 | 49 | -1NEUTRAL |
| VALUATION | 56 | 77 | -21DRAG |
| INVESTMENT | 23 | 11 | +12ALPHA |
| STABILITY | 62 | 68 | -6DRAG |
| SHORT INT | 18 | 4 | +14ALPHA |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 16.5% vs WACC 8.9% (spread +7.6%)
GM 0% vs sector 78%, OM 40% vs sector 18%
Capital turnover 0.52x
Rev growth 23%, 10yr history
Interest coverage 5.8x, Net debt/EBITDA 2.9x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Terreno Realty Corp (TRNO) as a Reduce with a composite score of 42.7/100 at a current price of $65.37. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
Terreno Realty Corp holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 42.7/100 places it at rank #3154 in our full universe.
Narrow
Low
Standard
Fair Value
Stable competitive position in a defensive sector.
Below-average quality raises earnings sustainability concerns.
Vulnerability to macroeconomic shocks and interest rate volatility.
Terreno Realty Corp represents a reduce based on multi-factor quantitative performance.
Terreno Realty Corp receives a Reduce rating from our analysis, with a composite score of 42.7/100 and 2 out of 5 stars, ranking #3154 out of 7,333 stocks. TRNO's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
TRNO's quality score of 25/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of 6.8% (sector avg: 9.0%), gross margins of 0.0% (sector avg: 77.7%), net margins of 63.1% (sector avg: 21.9%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
TRNO's value score of 56/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 24.26x, an EV/EBITDA of 27.63x, a P/B ratio of 1.65x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
Terreno Realty Corp's investment score of 23/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 23.3% vs. a sector average of 10.7% and a return on assets of 5.2% (sector: 1.3%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
TRNO is currently showing below-average momentum at 48/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at 23.3% year-over-year, while a beta of 0.78 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
With a stability score of 62/100, TRNO exhibits average financial resilience. Key stability metrics include a beta of 0.78 and a debt-to-equity ratio of 23.00x (sector avg: 0.5x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
Terreno Realty Corp's short interest score of 18/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include elevated leverage (D/E: 23.00x). At $5.9B (mid-cap), TRNO carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
TRNO pays a solid dividend yield of 3.5%, contributing an income component to total returns. This compares to a sector average dividend yield of 2.0%. This moderate yield suggests a balance between returning capital to shareholders and retaining earnings for reinvestment — a common profile among quality compounders.
Terreno Realty Corp is a mid-cap company in the Finance, Insurance, And Real Estate sector, ranked #0 of 50 in its sector (100th percentile) and #3154 of 7,333 overall (57th percentile). Key comparisons include ROE of 6.8% trailing the 9.0% sector median and operating margins of 39.6% above the 18.1% sector average. This top-quartile standing reflects exceptional competitive strength relative to Finance, Insurance, And Real Estate peers.
While TRNO currently exhibits a REDUCE profile, superior opportunities exist within the FINANCE, INSURANCE, AND REAL ESTATE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Finance, Insurance, And Real Estate Alpha →Quant Factor Profile
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Improvement in Short Int. (18) would have the largest impact on the composite score.
EV/EBITDA 256% ABOVE SECTOR MEDIAN
ROE 25% BELOW SECTOR MEDIAN
Gross Margin 100% BELOW SECTOR MEDIAN
Terreno Realty (TRNO) has been active on two fronts: signing a 10 year lease for 66,000 square feet in Rancho Dominguez, California, and acquiring a large industrial property in Queens, New York. See our latest analysis for Terreno Realty. These lease and acquisition moves come as Terreno Realty’s share price sits at $65.88, with an 11.62% year to date share price return and a 34.87% five year total shareholder return, which may suggest gradually building momentum rather than a sharp short...
As the U.S. stock market kicks off February with a strong rally, highlighted by significant gains in major indexes like the Dow Jones Industrial Average and S&P 500, investors are keenly observing opportunities amidst economic developments such as trade deals and shifts in monetary policy. In this dynamic environment, dividend stocks stand out for their potential to provide steady income streams, offering investors a degree of reliability even as broader market conditions fluctuate.

Winmark (WINA) and Terreno Realty (TRNO) are discussed as potential Buffett-like stocks to buy, with a focus on their strong cash flow, capital-light operations, and management.

Terreno Realty, a small industrial REIT, has consistently raised its dividend and is well-positioned to continue growing its earnings and dividend due to strong demand for industrial real estate. The article suggests it's a good stock to buy ahead of further dividend increases.

Terreno (TRNO) completes the development and stabilization of Building 40 in Hialeah, FL. The move poises it well to capitalize on the favorable industrial real estate market fundamentals.
Above 50MA
37.18%
Net New Highs
+51081