Terreno Realty Corporation · NYSE:TRNO
Terreno Realty — Q4 2020 Earnings Presentation
27 slides from Terreno Realty's earnings presentation, Feb 10, 2021
Slide 1: Terreno Realty Corporation Q4 2020 Update
Terreno Realty Corporation Q4 2020 Update February 10, 2021
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: Recent Highlights
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Recent Highlights Financial Highlights Net Income available to common stockholders of $0.20 per diluted share for the quarter ended December 31, 2020 compared to $0.33 per share for the quarter ended
Slide 5: Recent Highlights
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Recent Highlights Investment Highlights Capital Markets Activities Issued 143,020 shares of common stock under the ATM during the Q4 2020 Acquisitions $50.5 million three months ended December 31, 202
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 13.8% Northern New Jersey / New York City 29.5% San Francisco Bay Area 18.3% Washington, D.C. 11.5
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 32% 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 20% Decrease in Supply Since 1997 Rental Rate Increase Since 1997 Source: CoStar South San Francisco zoning limits
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 15,000 12,000 9,000 6,000 3,000
Slide 10: Selected Recent Acquisitions
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Selected Recent Acquisitions Purchase Price: $4.4 million Estimated Stabilized Cap Rate: 4.5% 2425 Porter Street Size: One industrial distribution building containing approximately 12,618 square f
Slide 11: 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 two-thirds of our acquisitions have been value-add investments. Terreno has successfully stabilized 85 value-add investments
Slide 12: Value Creation – Leasing
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Value Creation – Leasing Property: 14732 S. Maple Avenue Location: Rancho Dominguez, CA Size: One improved land parcel on 2.5 acres Acquisition Price: $9.8 million in December 2020 Initial Occ
Slide 13: Value Creation – Redevelopment
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Value Creation – Redevelopment Before Property: 8615 South 192nd Street Location: Kent, WA Size: One building, 220,000 SF on 12.7 acres Acquisition Price: $12.4 million in October 2018 Initial
Slide 14: 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 Majority independent directors with diverse expertise compensation fully aligned wit
Slide 15: 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 16: Appendix
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix 16
Slide 17: 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 M onths Ended December 31, For the Year Ended December 31, 2020 2019 2020 2019 REVENUES Rental revenues and tenant
Slide 18: 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 For the Three Months Ended December 31, For the Year Ended December 31, NET INCOME, FFO AND ADJUSTED FFO(1) 2020 2019 2020 2019 Total revenues $ 48,879 $ 45,01
Slide 19: 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 Q4 2020 ACQUISITIONS Months Ended Estimated COMPONENTS OF NET OPERATING INCOME(1) December 31, 2020 Purchase Price Stabilized Leased % at Property
Slide 20: 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) 2020 2019 $ Change % Change 2020 2019 $ Change % Change Net income $ 13,513 $ 1
Slide 21: Appendix: Redevelopments and Dispositions
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Redevelopments and Dispositions REDEVELOPMENTS Total Expected Am ount Estim ated Estim ated Post- Estim ated % Pre-leased Investment (in Am ount Spent to Remaining to Stabilized Return Develop
Slide 22: Appendix: Capitalization
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Capitalization Senior Mortgage Loans Maturity Credit Facility Term Loans Unsecured Payable Total Debt 2021 $ - $ - $ - $ 11,271 $ 11,271 2022 - 100,000 50,000 - 150,000 2023 - - - - - 2024 - -
Slide 23: 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 24: 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 25: 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 26: 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 27: 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