Terreno Realty Corporation · NYSE:TRNO
Terreno Realty — Q3 2024 Earnings Presentation
34 slides from Terreno Realty's earnings presentation, Nov 6, 2024
Slide 1: Terreno Realty Corporation Q3 2024 Update
Terreno Realty Corporation Q3 2024 Update November 6, 2024
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) $0.67 $0.62 $0.61 $0.40 $0.36 $0.37 $0.37 $0.58 $0.57 $0.57 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Cash Same St
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 three and nine months ended September 30, 2024, Terreno Realty Corporation issued an Q3 2024 Acquisitions $7.6 million agg
Slide 6: Current Portfolio Overview
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Current Portfolio Overview Occupancy (1) (2) Six Major Coastal U.S. Markets (2) (3) Portfolio Same Store Seattle 13.8% 98.5% 98.4% Northern New Jersey / 97.3% New York City 97.0% 26.8% 96.2% 96.0% 96.2%
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 36% of portfolio located in shrinking supply submarkets (1) ̶ C
Slide 8: Shrinking Supply: Seattle Eastside
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Shrinking Supply: Seattle Eastside Approximately 16.6% Decrease in Supply and 7.1% Average Annual Increase in Rental Rate Since 2000 Source: CoStar The Eastside’s continued urbanization and light rail
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 (1) Represents average population density weighted by square feet and
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: 8,600 Peer Avg: 3,053 TRNO: 26,115 Peer Avg: 5,705 TRNO: 12,410
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 JFK Airport - Jamaica, Queens, New York City Airgate Building F Building K Building E Building I Building G Building D Building
Slide 12: Superior Long-Term Results
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Superior Long-Term Results 11.2% 12.9% Average Cash Unleveraged IRR on SSNOI Growth 34 Sold Properties Since IPO(1) Since IPO(1) 12.5% 11.1% Dividend CAGR TSR CAGR Since Since 2011 Initiation 2010 IPO (
Slide 13: Countyline Corporate Park Phase IV
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Countyline Corporate Park Phase IV Countyline Corporate Park Phase IV is a 121-acre landfill redevelopment project in Miami’s Countyline Corporate Park (“Countyline”), immediately adjacent to Terreno
Slide 14: 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 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 Tied for #1 among all REITs for Corporate compensation fully aligned with stockholde
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 For the Three Months Ended September 30, For the Nine Months Ended September 30, (in thousands except share and per share data) 2
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 September 30, For the Nine Months Ended September 30, (in thousands except share and per share
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 COMPONENTS OF NET OPERATING INCOME(1) Months Ended Q3 2024 Acquisitions (in thousands except share and per share data) September 30, 2024 Purchase
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 Nine Months Ended September 30, Ended September 30, SAME STORE GROWTH (1) (in thousands) 2024 2023 $ Change % Change 2024 2023 $ Change % Change
Slide 22: Appendix: Developments and Redevelopments
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Developments and Redevelopments DEVELOPMENTS AND REDEVELOPMENTS Estimated Estimated Total Expected Amount Spent Estimated Post- Post- Estimated % Pre-leased Investment (in to Date (in Stabiliz
Slide 23: Appendix: Dispositions
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Dispositions HISTORICAL DISPOSITIONS Acquisition Price (in Disposition Price (in Unleveraged Property Market Acquisition Date Disposition Date thousands) thousands) IRR Rialto Los Angeles Sept
Slide 24: Appendix: Capitalization
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Capitalization Maturity (in thousands except share and per share data) Credit Facility Term Loans Senior Unsecured Notes Total Debt 2024 (3 months) $ - $ - $ - $ - 2025 - - - - 2026 - - 50,000
Slide 25: Appendix: Selected Recent Acquisitions
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Selected Recent Acquisitions Purchase Price: $84.3 million Size: Four industrial distribution buildings containing approximately 357,000 square feet on 6584-6674 Fleet 19.1 acres Drive E
Slide 26: Appendix: Selected Examples of Value Creation
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Selected Examples of Value Creation Since Terreno’s 2010 IPO, approximately 54% of our acquisitions have been value-add investments. Terreno has successfully stabilized 124 value-add investmen
Slide 27: Appendix: Value Creation – Leasing
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Value Creation – Leasing Property: 13045 SE 32nd Street Location: Bellevue, WA, adjacent to the intersection of I-90 and I-405 Size: One industrial distribution building containing appro
Slide 28: Appendix: Value Realized
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Value Realized Property: 5300 Denver Avenue South Location: Seattle, WA, adjacent to Seattle’s Port and SoDo district Size: One industrial distribution building containing approximately
Slide 29: 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 West of 405 Commerce/Vernon Hawthorne Mid-Counties Downtown LA San Fernando Valley Or
Slide 30: 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 31: 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 32: 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 33: Appendix: Reporting Definitions
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Reporting Definitions In-Place Cap Rate: We compute estimated in-place cap rates, at the time of acquisition, as annualized cash basis net operating income for the property divided by the tota
Slide 34: 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