Terreno Realty Corporation · NYSE:TRNO
Terreno Realty — Q2 2021 Earnings Presentation
28 slides from Terreno Realty's earnings presentation, Aug 4, 2021
Slide 1: Terreno Realty Corporation Q2 2021 Update
Terreno Realty Corporation Q2 2021 Update August 4, 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: Financial Highlights
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Financial Highlights Net Income Per Share FFO Per Share(1) Cash Same Store NOI Growth (1)(2) Cash SSNOI Excluding Termination Fees(1)(2) (1) This is a non-GAAP financial measure, please see our Reportin
Slide 5: Recent Highlights
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Recent Highlights Investment Highlights Capital Markets Activities Issued 1,084,294 shares of common stock under the ATM during the three Q2 2021 Acquisitions $54.2 million months ended June 30, 2021
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 15.1% Northern New Jersey / New York City 28.8% San Francisco Bay Area 18.3% Washington, D.C. 11.2
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 31% 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: Submarket Focus: Ownership Density
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Submarket Focus: Ownership Density Expanding presence in urban 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: $8.0 million Estimated Stabilized Cap Rate: 4.8% 560 East Gish Size: 2.2-acre improved land parcel Road Occupancy: 100% leased to one tenant Locati
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 two-thirds of our acquisitions have been value-add investments. Terreno has successfully stabilized 87 value-add investments
Slide 13: 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 14: Value Creation – Leasing
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Value Creation – Leasing Property: 256 Paterson Plank Road Location: Carlstadt, NJ Size: One transshipment building, 16,000 SF on 4.3 acres Acquisition Price: $10.6 million in January 2021 Ini
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 M onths Ended June 30, For the Six M onths Ended June 30, 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 June 30, For the Six Months Ended June 30, (in thousands-except share and per share data) 2021 2
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 Q2 2021 ACQUISITIONS COMPONENTS OF NET OPERATING INCOME(1) Months Ended Estimated (in thousands-except share and per share data) June 30, 2021 Purc
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 Six Months Ended June 30, Ended June 30, SAME STORE GROWTH (1) (in thousands) 2021 2020 $ Change % Change 2021 2020 $ Change % Change Net income
Slide 22: Appendix: Redevelopments and Dispositions
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Redevelopments and Dispositions REDEVELOPMENTS Am ount Total Expected Am ount Spent to Rem aining to Estim ated Estim ated Post- Estim ated Investm ent (in Date (in Spend (in Stabilized Return
Slide 23: 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 2021 (6 months) $ - $ - $ - $ - $ - 2022 - 100,000 50,000 - 150,000 2023 - - - - - 2024 -
Slide 24: Appendix: Submarket Focus
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Submarket Focus (1) Shrinking Supply: Characterized by shrinking industrial supply. Offers opportunities to convert existing buildings into higher and better use over time. Super infill. (2) N
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