Terreno Realty Corporation · NYSE:TRNO
Terreno Realty — Q2 2022 Earnings Presentation
32 slides from Terreno Realty's earnings presentation, Aug 3, 2022
Slide 1: Terreno Realty Corporation Q2 2022 Update
Terreno Realty Corporation Q2 2022 Update August 3, 2022
Slide 2: Forward Looking Statements
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Forward Looking Statements This presentation contains forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical fact are forward-lo
Slide 3: Investment Strategy
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Investment Strategy Unique and Highly Selective Functional Assets Market Approach in Infill Locations ▪ Acquire, own and operate industrial real estate in six ▪ Broad product opportunity set (1) major c
Slide 4: Financial Highlights
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Financial Highlights Net Income Per Share (1) FFO Per Share (2) $1.28 $0.48 $0.46 $0.45 $0.44 $0.44 $0.42 $0.30 $0.26 $0.25 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Cash Sam
Slide 5: Recent Highlights
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Recent Highlights Investment Highlights Capital Markets Activities ▪ During both the three months and six ended June 30, 2022, Terreno Q2 2022 Acquisitions $203.3 million Realty Corporation issued an ag
Slide 6: Current Portfolio Overview
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Current Portfolio Overview Occupancy (1) Six Major Coastal U.S. Markets (2) Portfolio Same Store Seattle 17.9% 98.6% 98.4% 98.0% 98.2% 98.0% 97.9% Northern New Jersey / New York City 96.9% 24.9% San Fra
Slide 7: Terreno's Submarket Focus
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Terreno’s Submarket Focus Percentage Decrease in Industrial Supply Highly Focused Submarket Strategy Since 2000 (2) In Select Submarkets ▪ 35% of portfolio located in shrinking supply submarkets (1) 0%
Slide 8: Shrinking Supply: South San Francisco
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Shrinking Supply: South San Francisco Percentage Inventory Decrease and Approximately 23% Decrease in Supply Since 1997 Rental Rate Increase Since 1997 5% Inventory change Rental Rate Change 140% 120% 0
Slide 9: Submarket Focus: Infill
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Submarket Focus: Infill Terreno portfolio located within highest density population submarkets as compared to other industrial REITs 18,000 Population Density Per Square Mile (1) 15,000 12,000 9,000 6,0
Slide 10: Submarket Focus: Infill
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Submarket Focus: Infill Terreno portfolio located within highest density population submarkets as compared to other industrial REITs TRNO: 7,984 Peer Avg: 3,360 TRNO: 26,634 Peer Avg: 7,912 TRNO: 13,134
Slide 11: Submarket Focus: Ownership Density
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Submarket Focus: Ownership Density Expanding presence in infill submarkets Meadowlands, Northern New Jersey: SoDo, Seattle Washington: 11
Slide 12: Superior Long-Term Results
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Superior Long-Term Results 11.0% 12.5% Average Cash Unleveraged IRR on SSNOI Growth 26 Sold Properties Since IPO(1) Since IPO(1) 13.1% 11.3% Dividend CAGR TSR CAGR Since Since 2011 Initiation 2010 IPO (
Slide 13: Selected Recent Acquisitions
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Selected Recent Acquisitions ➢ Purchase Price: $54.6 million ➢ Estimated Stabilized Cap Rate: 2.5% ➢ Size: One industrial distribution building containing 3660 Thomas Road approximately 135,000 square f
Slide 14: Selected Examples of Value Creation
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Selected Examples of Value Creation Since Terreno’s 2010 IPO, approximately 60% of our acquisitions have been value-add investments. Terreno has successfully stabilized 98 value-add investments to date.
Slide 15: Value Creation – Leasing
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Value Creation – Leasing ➢ Property: 178 Stockton Street ➢ Location: Newark, NJ, immediately adjacent to U.S. Routes 1 and 9, and less than one mile from I-78, New Jersey Turnpike and Newark Liberty Int
Slide 16: Value Creation – Redevelopment
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Value Creation – Redevelopment ➢ Property: America’s Gateway 5 ➢ Location: Doral, FL ➢ Size: One industrial distribution building containing approximately 52,000 square feet on 2.4 acres ➢ Acquisition D
Slide 17: Value Realized
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Value Realized ➢ Property: Middlebrook Crossroads ➢ Location: Bound Brook, NJ ➢ Size: 18 multi–tenant industrial buildings containing approximately 581,000 square feet on 38 acres ➢ Acquisition Price: $
Slide 18: Environmental Highlights
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Environmental Highlights We contribute positively to the environment by owning and operating facilities in infill locations close to population centers thereby minimizing vehicle miles traveled and the
Slide 19: Market Leading Corporate Structure
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Market Leading Corporate Structure Management Alignment Corporate Governance ▪ Executive Team’s long-term incentive ▪ Tied for #1 among all REITs for Corporate compensation fully aligned with stockholde
Slide 20: Key Takeaways
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Key Takeaways ➢ Focused strategy – Six major coastal US markets, exclusively – Flexible and functional assets in infill locations ➢ Acquisition opportunities across our target markets at discounts to re
Slide 21: Appendix
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix 21
Slide 22: Appendix: Statements Of Operations
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Statements Of Operations CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months Ended June 30, For the Six Months Ended June 30, (in thousands except share and per share data) 2022 2021 20
Slide 23: Appendix: Net Income, FFO and Adjusted FFO
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Net Income, FFO and Adjusted FFO NET INCOME, FFO AND ADJUSTED FFO(1) For the Three Months Ended June 30, For the Six Months Ended June 30, (in thousands except share and per share data) 2022 2
Slide 24: Appendix: Supplemental Components of NAV
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Supplemental Components of NAV Q2 2022 Acquisitions COMPONENTS OF NET OPERATING INCOME(1) For the Three Months Estimated (in thousands except share and per share data) Ended June 30, 2022 Purc
Slide 25: Appendix: Same Store Results
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Same Store Results For the Three Months For the Six Months Ended June 30, Ended June 30, SAME STORE GROWTH (1) (in thousands) 2022 2021 $ Change % Change 2022 2021 $ Change % Change Net income
Slide 26: Appendix: Redevelopments and Dispositions
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Redevelopments and Dispositions REDEVELOPMENTS (3) Total Expected Amount Remaining Estimated Estimated Post- Estimated Investment (in Amount Spent to to Spend (in Stabilized Return Development
Slide 27: Appendix: Capitalization
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Capitalization Senior Maturity (in thousands except share and per share data) Credit Facility Term Loans Unsecured Notes Total Debt 2022 (6 months) $ - $ - $ 50,000 (2) $ 50,000 2023 - - - - 2
Slide 28: Appendix: Submarket Focus
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Submarket Focus Market Shrinking Supply (1) No Net New Supply (2) New Supply (3) Los Angeles LAX South Bay Inland Empire West West of 405 Commerce/Vernon Inland Empire East Hawthorne Mid-Count
Slide 29: Appendix: Management and Board of Directors
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Management and Board of Directors ▪ Co-founded Terreno Realty Corporation in 2007 Blake Baird ▪ Former President and Director of AMB Property Corporation (NYSE: AMB) Chairman and CEO ▪ Directo
Slide 30: Appendix: Reporting Definitions
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Reporting Definitions Adjusted EBITDA: We compute Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, gain on sales of real estate investments, acquisition costs
Slide 31: Appendix: Reporting Definitions
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Reporting Definitions Adjusted Funds from Operations (AFFO): We compute AFFO by adding to or subtracting from FFO (see definition below) (i) acquisition costs (ii) stock-based compensation (ii
Slide 32: Appendix: Reporting Definitions
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Reporting Definitions Net Operating Income (NOI): We compute NOI as rental revenues, including tenant expense reimbursements, less property operating expenses. We compute same store NOI as ren