Terreno Realty Corporation · NYSE:TRNO
Terreno Realty — Q3 2018 Earnings Presentation
27 slides from Terreno Realty's earnings presentation, Nov 1, 2018
Slide 1: Terreno Realty Corporation Q3 2018 Update
Terreno Realty Corporation Q3 2018 Update November 1, 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 $0.17 per diluted share for the quarter ended September 30, 2018 compared to $0.35 for the quarter ended June 30,
Slide 5: Recent Highlights
SACRAMENTO2013\Investor Presentation\Terreno Realty Roadshow Presentation (July 10, 2013) v7.pptx Recent Highlights Investment Highlights Q3 2018 Acquisitions $67.8 million Year-to-date, sold two properties for approximately $44.6 million generating an unleveraged internal rate of return of 10.0%
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 11.5% 98.9% 98.5% Northern New Jersey / 98.2% 98.2% 98.3% New York City 25.4% 97.3% 97.4% 97.0% 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 24% 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: $36.0 million Estimated Stabilized Cap Rate: 5.2% Merced Size: Three industrial distribution buildings and one office building containing an aggregate
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 focuses on value-add projects. Since its IPO, approximately half of Terreno’s acquisitions
Slide 10: 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 Acquisition Size: One building, 83,294 SF on 3.7 acres Acquisition Price: $25.2 million, $302 PSF in
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, three miles south of Downtown Seattle Size: One building, 45,300 SF on 1.5 acres Acqu
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 Area Properties Location: Seattle, WA, three miles south of Downtown Seattle Size: One building, 30,000 SF on 1.5 acres
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 September 30, For the Nine M onths Ended September 30, 2018 2017 2018 2017 REVENUES Rental revenues $
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 M onths Ended September For the Nine Months Ended September NET INCOME, FFO AND ADJUSTED FFO(1) 2018 2017 2018 2017 Total revenues $ 37,899 $ 33,
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 Q3 2018 ACQUISITIONS Months Ended September 30, Purchase Estimated COMPONENTS OF NET OPERATING INCOME(1) 2018 Price Stabilized Leased % at Total re
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 Nine Months Ended September 30, Ended September 30, SAME STORE GROWTH (1) 2018 2017 $ Change % Change 2018 2017 $ Change % Change Net income $ 1
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 Return Stabilization Property Nam e thousa
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 (3 months) $ - $ - $ - $ 485 $ 485 2019 - - - 18,805 18,805 2020 21,850 - - 33,077 54
Slide 22: 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 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 Source: S&P Global Market
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