Terreno Realty Corporation · NYSE:TRNO
Terreno Realty — Q1 2018 Earnings Presentation
27 slides from Terreno Realty's earnings presentation, May 2, 2018
Slide 1: Terreno Realty Corporation Q1 2018 Update
Terreno Realty Corporation Q1 2018 Update May 2, 2018
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 Focus on Functional Assets Market Approach in Infill Locations Acquire, own and operate industrial real estate in six Broad product opportunity set(1)
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 $0.18 per diluted share for the quarter ended March 31, 2018 compared to $0.20 for the quarter ended December 31,
Slide 5: Recent Highlights: Investment Highlights
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Recent Highlights Investment Highlights Q1 2018 Acquisitions $84.7 million For the three months ended March 31, 2018, sold one property for approximately $20.3 million generating an unleveraged intern
Slide 6: Current Portfolio Overview
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Current Portfolio Overview Occupancy Six Major Coastal U.S. Markets(1) Portfolio Same Store Seattle 11.4% Northern New Jersey / New York City 26.4% San Francisco Bay Area 13.2% Washington, D.C. 16.6% Lo
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 25% of portfolio located in shrinking supply submarkets (1) ̶ C
Slide 8: Selected Recent Acquisitions
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Selected Recent Acquisitions Purchase Price: $17.5 million Estimated Stabilized Cap Rate: 3.3% Vermont Size: One industrial distribution building containing approximately 100,000 square feet on 4.
Slide 9: Selected Examples of Value Creation
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Selected Examples of Value Creation In addition to the acquisition and operation of core properties, Terreno also focuses on value-add projects. Since its IPO, approximately half of Terreno’s acquisit
Slide 10: Value Creation – Near Term Lease Expiration
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Value Creation – Near Term Lease Expiration AERIAL Property: 637 South Lucile Location: Seattle, WA, two miles south of Downtown Seattle Size: One building, 45,300 SF on 1.5 acres Acquisition Pr
Slide 11: Value Creation – Renovation
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Value Creation – Renovation BEFORE Property: West 140th Location: San Leandro, CA Size: Two buildings, 100,500 SF on 8.2 acres Acquisition Price: $15.9 million, $159 PSF in October 2016 Renova
Slide 12: Value Creation – Redevelopment
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Value Creation – Redevelopment BEFORE Property: South Main Location: Carson, CA Acquisition size and price: Three industrial buildings totaling 186,000 SF and one 34,000 SF office building on 14.3
Slide 13: 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 compensation fully aligned with stockhol
Slide 14: 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 rep
Slide 15: Appendix
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix 15
Slide 16: Appendix: Statements Of Operations
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Statements Of Operations For the Three M onths Ended M arch 31, 2018 2017 REVENUES Rental revenues $ 28,734 $ 24,467 Tenant expense reimbursements 8,373 6,974 Total revenues 37,107 31,441 COST
Slide 17: 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 March 31, NET INCOME, FFO AND ADJUSTED FFO(1) 2018 2017 Total revenues $ 37,107 $ 31,441 Property operating expenses (9,893) (8,547)
Slide 18: Appendix: Supplemental Components of NAV
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Supplemental Components of NAV Q1 2018 For the Three Months Ended Purchase Estimated COMPONENTS OF NET OPERATING INCOME(1) March 31, 2018 Price Stabilized Leased % at Total revenues $ 37,107 P
Slide 19: Appendix: Same Store Results
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Same Store Results For the Three Months Ended March 31, SAME STORE GROWTH (1) 2018 2017 $ Change % Change Net income $ 10,057 $ 5,799 $ 4,258 73.4% Depreciation and amortization 10,735 9,184 1
Slide 20: Appendix: Redevelopments and Dispositions
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Redevelopments and Dispositions REDEVELOPMENTS Total Expected Estim ated Estim ated Investm ent (in Stabilized Cap Com pletion Property Nam e thousands) 1 Rate 2 Quarter 1775 NW 70th Avenue $
Slide 21: Appendix: Capitalization
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Capitalization Senior Mortgage Maturity Credit Facility Term Loans Unsecured Loans Payable Total Debt 2018 (9 months) $ - $ - $ - $ 1,440 $ 1,440 2019 - - - 18,805 18,805 2020 40,350 - - 33,07
Slide 22: Appendix: Submarket Focus
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Submarket Focus Ma rke t Shrinking Supply (1) No Ne t New Supply (2) New Supply (3) Los Angele s LAX South Bay Inland Empire W est W est of 405 Commerce/Vernon Inland Empire East Hawthorne Mid
Slide 23: Appendix: Submarket Focus
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Submarket Focus Portfolio located within highest population areas as compared to other logistics REITs Population Density Per Square Mile within Radius of Properties 15,000 12,500 10,000 7,500
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