Terreno Realty Corporation · NYSE:TRNO
Terreno Realty — Q2 2018 Earnings Presentation
27 slides from Terreno Realty's earnings presentation, Aug 2, 2018
Slide 1: Terreno Realty Corporation Q2 2018 Update
Terreno Realty Corporation Q2 2018 Update August 2, 2018
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 $0.35 per diluted share for the quarter ended June 30, 2018 compared to $0.18 for the quarter ended March 31, 2018
Slide 5: Recent Highlights
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Recent Highlights Investment Highlights Q2 2018 Acquisitions $14.9 million For the three months ended June 30, 2018, sold one property for approximately $24.3 million generating an unleveraged interna
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 11.9% 98.2% 98.2% 98.3% Northern New Jersey / 97.3% 97.4% 97.4% New York City 97.0% 26.4% 96.7% San Fr
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 25% 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: $2.6 million Estimated Stabilized Cap Rate: 5.2% Wicks Blvd Size: One light industrial building containing approximately 11,000 square feet on 1.3 acre
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 – Renovation
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Value Creation – Renovation Before Property: West 140th Location: San Leandro, CA Size: Two buildings, 100,500 SF on 8.2 acres Acquisition Price: $15.9 million, $159 PSF in October 2016 Renova
Slide 11: Value Creation – Near Term Lease Expiration
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Value Creation – Near Term Lease Expiration SoDo Property: 637 South Lucile Submarket Location: Seattle, WA, two miles south of Downtown Seattle Size: One building, 45,300 SF on 1.5 acres Acquis
Slide 12: Value Creation – Below Market Rents
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Value Creation – Below Market Rents Select SoDo Property: 5300 Denver Avenue Properties Location: Seattle, WA, two miles south of Downtown Seattle Size: One building, 30,000 SF on 1.5 acres Acqu
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 re
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 June 30, For the Six M onths Ended June 30, 2018 2017 2018 2017 REVENUES Rental revenues $ 28,906 $ 2
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 June 30, For the Six Months Ended June 30, NET INCOME, FFO AND ADJUSTED FFO(1) 2018 2017 2018 2017 Total revenues $ 37,238 $ 32,778
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 Months Ended COMPONENTS OF NET OPERATING INCOME (1) June 30, 2018 Q2 2018 ACQUISITIONS Total revenues $ 37,238 Less straight-line rents (1,152) Pur
Slide 19: 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) 2018 2017 $ Change % Change 2018 2017 $ Change % Change Net income $ 20,137 $ 15,
Slide 20: 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 Estim ated Estim ated Investm ent (in Am ount Spent to Rem aining to Stabilized Cap Com pletion Property Nam e thousands)
Slide 21: 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 2018 (6 months) $ - $ - $ - $ 965 $ 965 2019 - - - 18,805 18,805 2020 5,350 - - 33,077 38,
Slide 22: Appendix: Submarket Focus
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Submarket Focus Ma rke t Shrinking Supply (1) No Ne t Ne w Supply (2) Ne w Supply (3) Los Ange le s LAX South Bay Inland Empire W est W est of 405 Commerce/Vernon Inland Empire East Hawthorne
Slide 23: Appendix: Submarket Focus
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Submarket Focus Portfolio located within highest population areas as compared to other logistics REITs Population Density Per Square Mile within Radius of Properties 15,000 12,500 10,000 7,500
Slide 24: 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 25: 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 26: 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 27: 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