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1. Company Snapshot

1.a. Company Description

Terreno Realty Corporation and together with its subsidiaries, the “Company”) acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. All square feet, acres, occupancy and number of properties disclosed in these condensed notes to the consolidated financial statements are unaudited.As of September 30, 2020, the Company owned 219 buildings aggregating approximately 13.1 million square feet, 22 improved land parcels consisting of approximately 85.0 acres and one property under redevelopment expected to contain approximately 0.2 million square feet upon completion.The Company is an internally managed Maryland corporation and elected to be taxed as a real estate investment trust (“REIT”) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its taxable year ended December 31, 2010.

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1.b. Last Insights on TRNO

Terreno Realty Corporation's recent performance was negatively impacted by concerns over per-share growth, which remains modest due to continued dilution. Despite a strong leasing momentum, with notable deals in Seattle, WA, and a 103K sq ft lease with a space mobility firm in CA, the company's acquisition spree, including a $232.6M Woodinville deal, raises questions about profitable growth. Valuations have become more reasonable, with shares trading at 21-22x FFO, offering a nearly 4% dividend yield. (Source: August 14 report)

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Is Terreno Realty's Hialeah Expansion Bolstering Its Industrial Edge?

Dec -04

Source: zacks.com

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3 Must-Have REITs for Your Black Friday Shopping Cart

Nov -28

Source: zacks.com

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Picking A Winner In Industrial REITs

Nov -28

Source: seekingalpha.com

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Terreno Realty Pre-Leases 100% of Building 36, Sees Strong Demand

Nov -24

Source: zacks.com

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Terreno Realty Corporation Announces Leases in Hialeah, FL

Nov -21

Source: businesswire.com

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Terreno Realty Corporation Acquires Property in Queens, NY for $4.7 Million

Nov -18

Source: businesswire.com

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Connor Clark & Lunn Investment Management Ltd. Acquires 14,664 Shares of Terreno Realty Corporation $TRNO

Nov -17

Source: defenseworld.net

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Terreno Realty Corporation Declares Quarterly Dividend and Files Third Quarter 2025 Financial Statements

Nov -05

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.79%)

6. Segments

Rental - Same Store

Expected Growth: 4.78%

Terreno Realty Corporation's 4.78% same-store rental growth is driven by strong industrial market fundamentals, including e-commerce growth, supply chain reconfigurations, and limited new supply. Additionally, the company's strategic focus on high-demand markets, such as Southern California and the New York/New Jersey area, contributes to its above-average growth.

Tenant Expense Reimbursements - Same Store

Expected Growth: 4.83%

The 4.83% growth in Tenant Expense Reimbursements - Same Store at Terreno Realty Corporation is driven by a combination of factors, including increasing occupancy rates, rising property operating expenses, and contractual rent escalations. Additionally, the company's focus on high-quality, infill industrial properties in prime markets has contributed to the growth, as tenants are willing to pay premiums for strategic locations.

Rental - Non-same Store

Expected Growth: 4.78%

Terreno Realty Corporation's 4.78% Rental - Non-same Store growth is driven by strategic acquisitions, increasing occupancy rates, and rent growth in key markets such as California and New Jersey. Additionally, the company's focus on industrial properties, which are in high demand, contributes to its growth. Effective asset management and capital allocation also support the company's growth momentum.

Tenant Expense Reimbursements - Non-same Store

Expected Growth: 4.83%

The 4.83% growth in Tenant Expense Reimbursements - Non-same Store is driven by increasing occupancy rates, rising property operating expenses, and a growing non-same store portfolio. Additionally, Terreno Realty's strategic acquisitions and expansions into high-demand markets have contributed to the growth, as well as the company's ability to pass through operating expenses to tenants.

7. Detailed Products

Industrial Properties

Terreno Realty Corporation owns and operates industrial properties, including warehouses, distribution centers, and light industrial facilities, providing space for manufacturing, logistics, and distribution activities.

Flex Properties

Terreno Realty Corporation's flex properties combine office and industrial space, catering to businesses that require a mix of administrative and production areas.

R&D Properties

Terreno Realty Corporation's R&D properties are designed to support the research, development, and production activities of technology, biotechnology, and pharmaceutical companies.

Cold Storage Properties

Terreno Realty Corporation's cold storage properties provide temperature-controlled environments for the storage and distribution of perishable goods, such as food, pharmaceuticals, and biotechnology products.

8. Terreno Realty Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Terreno Realty Corporation operates in the industrial real estate sector, which has a moderate threat of substitutes. While there are alternative options for logistics and warehousing, the company's focus on high-quality facilities and strategic locations mitigates this threat to some extent.

Bargaining Power Of Customers

Terreno Realty Corporation's customers are primarily third-party logistics providers, e-commerce companies, and manufacturers. These customers have limited bargaining power due to the company's diversified tenant base and long-term leases.

Bargaining Power Of Suppliers

Terreno Realty Corporation has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's scale and financial resources also give it negotiating power in procurement.

Threat Of New Entrants

The industrial real estate sector has high barriers to entry, including significant capital requirements and regulatory hurdles. This limits the threat of new entrants and allows established players like Terreno Realty Corporation to maintain their market position.

Intensity Of Rivalry

The industrial real estate sector is moderately competitive, with several established players competing for tenants and market share. However, Terreno Realty Corporation's focus on high-quality facilities and strategic locations helps it to differentiate itself from competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 31.56%
Debt Cost 4.32%
Equity Weight 68.44%
Equity Cost 8.24%
WACC 7.00%
Leverage 46.11%

11. Quality Control: Terreno Realty Corporation passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
STAG Industrial

A-Score: 6.1/10

Value: 3.4

Growth: 5.4

Quality: 7.2

Yield: 7.0

Momentum: 4.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
LXP Industrial Trust

A-Score: 5.9/10

Value: 3.6

Growth: 2.2

Quality: 6.6

Yield: 9.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
First Industrial Realty Trust

A-Score: 5.9/10

Value: 2.5

Growth: 5.6

Quality: 8.0

Yield: 6.0

Momentum: 4.0

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Terreno Realty

A-Score: 5.8/10

Value: 2.4

Growth: 6.9

Quality: 7.4

Yield: 6.0

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
EastGroup Properties

A-Score: 5.8/10

Value: 2.0

Growth: 6.1

Quality: 7.1

Yield: 6.0

Momentum: 4.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Rexford Industrial Realty

A-Score: 5.7/10

Value: 3.0

Growth: 7.0

Quality: 6.4

Yield: 7.0

Momentum: 3.0

Volatility: 8.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

62.28$

Current Price

62.28$

Potential

-0.00%

Expected Cash-Flows