Terreno Realty Corporation · NYSE:TRNO
Terreno Realty — Q3 2019 Earnings Presentation
28 slides from Terreno Realty's earnings presentation, Oct 30, 2019
Slide 1: Terreno Realty Corporation Q3 2019 Update
Terreno Realty Corporation Q3 2019 Update October 30, 2019
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 $0.22 per diluted share for the quarter ended September 30, 2019 compared to $0.16 per diluted share for the quart
Slide 5: Recent Highlights: Investment Highlights
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Recent Highlights Investment Highlights One property under contract for sale as of September 30, Q3 2019 Acquisitions $141.2 million 2019 for a sale price of approximately $7.5 million (net book value
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 11.2% 99.1% 99.0% 99.0% 98.7% 98.4% 98.1% 97.9% Northern New Jersey / New York City 97.2% 29.5% Sa
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 30% 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 20% Decrease in Supply Since 1997 Rental Rate Increase Since 1997 5% 120% Inventory Change Rental Rate Change 100% 0% 80% Rent Rat
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 17,500 Population Density Per Square Mile 15,000 12,500 10,000 7,500 5,000
Slide 10: Selected Recent Acquisitions
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Selected Recent Acquisitions Purchase Price: $18.1 million Estimated Stabilized Cap Rate: 5.2% Anderson Size: Five industrial buildings containing approximately 53,000 square feet on 1.9 acres Los
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 its 2010 IPO, approximately two-thirds of Terreno’s acquisitions have been value-add investments. Terreno has successfully stabilized 71 value-add investments
Slide 12: Value Creation – Redevelopment and Leasing
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Value Creation – Redevelopment and Leasing Property: 1 Bulova Ave Location: Woodside, Queens, NY Size: One building, 83,300 SF on 3.7 acres Acquisition Price: $25.2 million in March 2018 Initi
Slide 13: Value Creation – Redevelopment and Leasing
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Value Creation – Redevelopment and Leasing Property: 56-85 49th Street Location: Maspeth, Queens, NY Size: One building, 19,000 SF on 2.0 acres Acquisition Price: $24.0 million in February 2019
Slide 14: Value Creation – Below Market Rents
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Value Creation – Below Market Rents SoDo Seattle: Approximately Three Miles South of Downtown Seattle Property: 5300 Denver Avenue Size: One building, 30,000 SF on 1.5 acres Acquisition Price: $4.
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 Majority independent directors with diverse compensation fully aligned with stockhol
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 M onths Ended September 30, For the Nine M onths Ended September 30, 2019 2018 2019 2018 REVENUES Rental revenues a
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 For the Three Months Ended September For the Nine Months Ended September NET INCOME, FFO AND ADJUSTED FFO(1) 2019 2018 2019 2018 Total revenues $ 43,397 $ 37,8
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 Q3 2019 ACQUISITIONS Months Ended (1) COMPONENTS OF NET OPERATING INCOME September 30, 2019 Purchase Estimated Price Stabilized Leased % at Total r
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, (1) SAME STORE GROWTH 2019 2018 $ Change % Change 2019 2018 $ Change % Change Net income $ 1
Slide 22: Appendix: Redevelopments and Dispositions
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Redevelopments and Dispositions REDEVELOPMENTS % Pre-leased Total Expected Am ount Estim ated Estim ated Post- Estim ated as of Investm ent (in Am ount Spent to Rem aining to Stabilized Return
Slide 23: Appendix: Capitalization
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Capitalization Senior Unsecured Mortgage Credit Facility Term Loans Notes Loans Payable Total Debt 2019 (3 months) $ - $ - $ - $ 384 $ 384 2020 - - - 33,077 33,077 2021 - 50,000 - 11,271 61,27
Slide 24: 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 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