Terreno Realty Corporation · NYSE:TRNO
Terreno Realty — Q4 2021 Earnings Presentation
28 slides from Terreno Realty's earnings presentation, Feb 9, 2022
Slide 1: Terreno Realty Corporation Q4 2021 Update
Terreno Realty Corporation Q4 2021 Update February 9, 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 FFO Per Share (1) $1.71 $1.23 $1.16 $1.44 $1.09 $1.38 $1.30 $0.95 $0.85 $1.09 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Cash Same Store NOI Growth (1)(2
Slide 5: Recent Highlights
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Recent Highlights Investment Highlights Capital Markets Activities During the fourth quarter of 2021, closed an offering of 4,025,000 shares of common Q4 2021 Acquisitions $326.1 million stock at a pr
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 17.0% 98.6% 98.0% 98.2% 97.8% Northern New Jersey / 97.5% 97.5% New York City 27.3% 96.1% 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) ̶ C
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 areas as compared to other industrial REITs 18,000 Population Density Per Square Mile (1) 15,000 12,000 9,000 6,000 3,
Slide 10: 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: 10
Slide 11: Selected Recent Acquisitions
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Selected Recent Acquisitions Purchase Price: $23.0 million Estimated Stabilized Cap Rate: 5.2% 1300 Berryessa Size: 7.2-acre improved land parcel Road Occupancy: Vacant Location: Between U.S.
Slide 12: 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 91 value-add investments to dat
Slide 13: Value Creation – Leasing
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Value Creation – Leasing Property: 15001 South San Pedro Street Location: Gardena, CA Size: 2.0-acre improved land parcel Acquisition Price: $8.8 million in October 2021 Initial Occupancy: Vac
Slide 14: Value Creation – Leasing
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Value Creation – Leasing Property: 13150 SE 32nd Street Location: Bellevue, WA Size: One industrial flex building containing approximately 39,000 square feet on 2.1 acres Acquisition Price: $11.
Slide 15: 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 Ranked #1 among all REITs for Corporate compensation fully aligned with stockholders
Slide 16: 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 17: Appendix
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix 17
Slide 18: Appendix: Statements Of Operations
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Statements Of Operations CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands except share and per share data) For the Three Months Ended December 31, For the Year Ended December 31, 2021 2020
Slide 19: 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 December 31, For the Year Ended December 31, (in thousands except share and per share data) 2021
Slide 20: Appendix: Supplemental Components of NAV
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Supplemental Components of NAV For the Three Months Q4 2021 ACQUISITIONS (1) COMPONENTS OF NET OPERATING INCOME Ended December 31, Purchase Price Estimated Stabilized Leased % at (in thousands
Slide 21: 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 Year Ended Ended December 31, December 31, SAME STORE GROWTH (1) (in thousands) 2021 2020 $ Change % Change 2021 2020 $ Change % Change Net inco
Slide 22: Appendix: Redevelopments and Dispositions
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Redevelopments and Dispositions REDEVELOPMENTS Total Expected Amount Spent to Amount Remaining Estimated Estimated Post- Estimated Investment (in Date (in to Spend (in Stabilized Return Develo
Slide 23: Appendix: Capitalization
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Capitalization Senior Unsecured Maturity (in thousands except share and per share data) Credit Facility Term Loans Notes Total Debt 2022 $ - $ - $ 50,000 $ 50,000 2023 - - - - 2024 - - 100,000
Slide 24: 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 25: 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 26: 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 27: 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 28: 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