Terreno Realty Corporation · NYSE:TRNO
Terreno Realty — Q1 2022 Earnings Presentation
32 slides from Terreno Realty's earnings presentation, May 4, 2022
Slide 1: Terreno Realty Corporation Q1 2022 Update
Terreno Realty Corporation Q1 2022 Update May 4, 2022
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) $0.44 $0.46 $0.45 $0.44 $0.30 $0.25 $0.26 $0.42 $0.24 $0.40 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 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 first quarter of 2022, Terreno Realty Corporation did not Q1 2022 Acquisitions $86.2 million issue any shares of common st
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 16.9% 98.6% 98.4% 98.0% 98.0% 98.2% 97.5% Northern New Jersey / 96.9% New York City 27.4% San Fra
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 34% of portfolio located in shrinking supply submarkets (1) 0%
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 23% Decrease in Supply Since 1997 Rental Rate Increase Since 1997 5% Inventory change Rental Rate Change 140% 120% 0
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 18,000 Population Density Per Square Mile (1) 15,000 12,000 9,000 6,0
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: 8,018 Peer Avg: 3,739 TRNO: 22,736 Peer Avg: 7,882 TRNO: 13,374
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 Meadowlands, Northern New Jersey: SoDo, Seattle Washington: 11
Slide 12: Superior Long-Term Results
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Superior Long-Term Results 11.0% 12.5% Average Cash Unleveraged IRR on SSNOI Growth 26 Sold Properties Since IPO(1) Since IPO(1) 11.8% 14.1% Dividend CAGR TSR CAGR Since Since 2011 Initiation 2010 IPO (
Slide 13: Selected Recent Acquisitions
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Selected Recent Acquisitions Purchase Price: $73.2 million Estimated Stabilized Cap Rate: 3.8% 4281-4341 Size: Two industrial distribution buildings under West 108th Street development containing
Slide 14: 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 60% of our acquisitions have been value-add investments. Terreno has successfully stabilized 92 value-add investments to dat
Slide 15: Value Creation – Leasing
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Value Creation – Leasing Property: 15001 South San Pedro Street Location: Gardena, CA Size: 2.0-acre improved land parcel Acquisition Price: $8.8 million in October 2021 Initial Occupancy: Vac
Slide 16: Value Creation – Redevelopment
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Value Creation – Redevelopment Property: America’s Gateway 5 Location: Doral, FL Size: One industrial distribution building containing approximately 52,000 square feet on 2.4 acres Acquisition D
Slide 17: Value Realized
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Value Realized Property: Middlebrook Crossroads Location: Bound Brook, NJ Size: 18 multi–tenant industrial buildings containing approximately 581,000 square feet on 38 acres Acquisition Price: $
Slide 18: 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 th
Slide 19: 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 20: 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 21: Appendix
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix 21
Slide 22: 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 Months Ended March 31, 2022 2021 REVENUES Rental revenues and tenant
Slide 23: 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 March 31, (in thousands except share and per share data) 2022 2021 Total revenues $ 64,035 $ 50,
Slide 24: 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 (in thousands except share and per share data) March 31, 2022 Q1 2022 Acquisitions Total revenue
Slide 25: 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) (in thousands) 2022 2021 $ Change % Change Net income $ 19,662 $ 16,257 $ 3,405 20.9% Depreciation and amortizatio
Slide 26: Appendix: Redevelopments and Dispositions
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Redevelopments and Dispositions REDEVELOPMENTS Total Expected Am ount Spent Am ount Rem aining Estim ated Estim ated Post- Estim ated Investm ent (in to Date (in to Spend (in Stabilized Return
Slide 27: Appendix: Capitalization
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Capitalization Senior Maturity (in thousands except share and per share data) Credit Facility Term Loans Unsecured Notes Total Debt 2022 (9 months) $ - $ - $ 50,000 $ 50,000 2023 - - - - 2024
Slide 28: 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 29: 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 30: 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 31: 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 32: 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