Terreno Realty Corporation · NYSE:TRNO
Terreno Realty — Q1 2023 Earnings Presentation
33 slides from Terreno Realty's earnings presentation, May 3, 2023
Slide 1: Terreno Realty Corporation Q1 2023 Update
Terreno Realty Corporation Q1 2023 Update May 3, 2023
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 Q Q Q Q Q Q Q Q Net Income Per Share (1) FFO Per Share (1)(2) $1.28 $0.54 $0.52 $0.51 $0.77 $0.48 $0.46 $0.26 $0.30 $0.29 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q1 '22 Q2 '22 Q3 '22 Q4
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 2023, we completed an offering of 5,750,000 Q1 2023 Acquisitions $382.6 million shares of common stock at
Slide 6: Current Portfolio Overview
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Current Portfolio Overview Occupancy (1) (2) Six Major Coastal U.S. Markets (2) (3) Portfolio Same Store Seattle 16.1% 98.6% 98.7% 98.5% 98.4% 98.2% 97.9% 98.1% Northern New Jersey / 97.2% New York City
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 32% of portfolio located in shrinking supply submarkets (1) ̶ C
Slide 8: Shrinking Supply: Washington, D.C.
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Shrinking Supply: Washington, D.C. Approximately 26.7% Decrease in Supply and 12.1% Average Annual Increase in Rental Rate Since 1994 Capitol Riverfront, Washington D.C.: Northeast Submarket, Washington
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: 8,529 Peer Avg: 2,988 TRNO: 28,047 Peer Avg: 5,814 TRNO: 12,484
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: South Bay, Los Angeles: 11
Slide 12: Superior Long-Term Results
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Superior Long-Term Results 11.2% 12.8% Average Cash Unleveraged IRR on SSNOI Growth 30 Sold Properties Since IPO(1) Since IPO(1) 12.2% 12.0% 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: $173.6 million Size: A 121-acre project entitled for 2.2 million square feet of industrial distribution buildings Countyline Estimated Stabilized Cap R
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 58% of our acquisitions have been value-add investments. Terreno has successfully stabilized 112 value-add investments to date
Slide 15: Value Creation – Leasing
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Value Creation – Leasing Property: 8050 NW 90th Street Location: Medley, FL, adjacent to the intersection of the Palmetto Expressway and West Okeechobee Road Size: 6.7-acre improved land parcel
Slide 16: Value Creation – Redevelopment
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Value Creation – Redevelopment Property: 3000 NW 73rd Street Location: Miami, FL, approximately three miles from Miami International Airport and six miles from both PortMiami and Downtown Miami Si
Slide 17: Value Realized
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Value Realized Property: 7777 West Side Avenue Location: North Bergen, NJ, adjacent to Exit 16E of the New Jersey Turnpike and approximately five miles from Manhattan Size: One industrial distribu
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 the
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 Tied for #1 among all REITs for Corporate compensation fully aligned with stockholde
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 For the Three Months Ended March 31, (in thousands except share and per share data) 2023 2022 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) 2023 2022 Total revenues $ 74,651 $ 64,
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 Q1 2023 Acquisitions COMPONENTS OF NET OPERATING INCOME(1) Months Ended Purchase Estimated (in thousands except share and per share data) March 31,
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) 2023 2022 $ Change % Change Net income $ 23,331 $ 19,662 $ 3,669 18.7% Depreciation and amortizatio
Slide 26: Appendix: Developments and Redevelopments
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Developments and Redevelopments DEVELOPMENTS AND REDEVELOPMENTS Amount Amount Estimated Estimated Total Expected Spent to Date Remaining to Estimated Post- Post- Estimated % Pre-leased Investm
Slide 27: Appendix: Dispositions
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Dispositions HISTORICAL DISPOSITIONS Acquisition Price Disposition Price Unleveraged Property Market Acquisition Date Disposition Date (in thousands) (in thousands) IRR Rialto Los Angeles Sept
Slide 28: Appendix: Capitalization
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Appendix: Capitalization Senior Unsecured Maturity (in thousands except share and per share data) Credit Facility Term Loans Notes Total Debt 2023 (9 months) $ - $ - $ - $ - 2024 - - 100,000 100,000 202
Slide 29: 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 30: 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 31: 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 32: 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 33: 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