Terreno Realty Corp

We believe that our executive officers and directors should own a meaningful equity interest in the

Company to further align their long-term financial interests with those of our stockholders. Pursuant to our Corporate Governance Guidelines, within five years of the ownership guidelines becoming subject to them, we require our chief executive officer and president to own stock or in an amount equal to five times his or her base salary and executive officers to own stock or in an amount equal to three times his or her base salary stock ownership. We also require ournon-employee directors to own stock in the amount equal a market value of at least $200,000 within four years of the ownership guidelines becoming subject to them. Our executive officers and non-employee directors are all in compliance with our policy’s applicable minimum stock ownership requirement or are not yet required to meet the applicable ownership requirements pursuant to the stock ownership guidelines.