Terreno Realty Corporation · NYSE:TRNO
Terreno Realty — Q4 2017 Earnings Presentation
25 slides from Terreno Realty's earnings presentation, Feb 7, 2018
Slide 1: Terreno Realty Corporation Q4 2017 Update
Terreno Realty Corporation Q4 2017 Update February 7, 2017
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 $0.20 per diluted share for the quarter ended December 31, 2017 compared to $0.02 for the same period in 2016 and
Slide 5: Recent Highlights
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Recent Highlights Investment Highlights Q4 2017 Acquisitions $105.1 million As of February 7, 2018, two properties under contract to sell for a sale price of approximately $39.3 million (net book valu
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 11.0% Northern New Jersey / New York City 25.1% San Francisco Bay Area 12.6% Washington, D.C. 18.0% 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 23% 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: $8.4 million Estimated Stabilized Cap Rate: 5.4% Size: One industrial distribution building containing NW 70th V approximately 59,000 square feet on 3.
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 Acquisition Price: $7.75 mi
Slide 11: Value Creation – Renovation
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Value Creation – Renovation BEFORE Property: 180 Manor Road Location: East Rutherford, NJ Size: One building, 85,000 SF on 4.3 acres Acquisition Price: Acquired for $9.3 million, $110 PSF in Oct
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 CONSOLIDATED STATEMENTS OF OPERATIONS For the Three M onths Ended December 31, For the Year Ended December 31, 2017 2016 2017 2016 REVENUES Rental revenues $ 26,700 $
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 December For the Year Ended December 31, NET INCOME, FFO AND ADJUSTED FFO(1) 2017 2016 2017 2016 Total revenues $ 34,625 $ 29,840 $
Slide 18: 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 2017 Acquisitions Months Ended COMPONENTS OF NET OPERATING INCOME(1) December 31, 2017 Purchase Estimated Total revenues $ 34,625 Price Stabiliz
Slide 19: Appendix: Same Store and Disposition Results
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Same Store and Disposition Results For the Three Months For the Year Ended Ended December 31, December 31, SAME STORE GROWTH (1) 2017 2016 $ Change % Change 2017 2016 $ Change % Change Net inc
Slide 20: Appendix: Capitalization
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Capitalization Debt Summary Senior Mortgage Maturity Credit Facility Term Loans Unsecured Loans Payable Total Debt 2018 $ - $ - $ - $ 1,910 $ 1,910 2019 - - - 18,805 18,805 2020 - - - 33,077 3
Slide 21: 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 22: 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 23: 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 24: 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 25: 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