PHILOSOPHY
We acquire, own and operate functional, flexible properties in infill locations at discounts to replacement cost within our six markets. We operate with a conservative capital structure. We do not do greenfield ground up development or make raw land investments. We are aligned with our shareholders.
> 294 Buildings
> 18.3 Million Square Feet
> 45 Improved Land Parcels
> 675 Customers
Investment Strategy
We believe successful long-term industrial property investment has four key features:
- Pricing at a discount to the replacement cost of the property
- Building layouts that can be modified to accommodate single and multiple tenants
- Potential for enhanced return through renovating, re-tenanting or operational improvements
- Opportunity for conversion to higher and better uses over time, particularly in submarkets with shrinking supply
We sell properties when we believe the prospective total return from a property is particularly low relative to its market value, or the market value is significantly greater than the property’s estimated replacement cost. Capital from such sales is recycled into properties that are expected to provide better prospective returns or is returned to shareholders.
Operating Approach
Terreno acquires, owns and operates properties that satisfy submarket demand. These properties may be warehouse/distribution, flex (including light industrial and R&D), transshipment (truck terminals) or improved land parcels, depending on the submarket. To create a margin of investment safety, we acquire both value-add and stabilized properties at discounts to replacement cost.
Aligned Compensation
We believe executives should be aligned closely with long-term stockholder value creation. Terreno’s executive management is invested meaningfully in common stock side-by-side with public investors and our executive compensation is designed to reward only superior total stockholder return.
Market Focus
Terreno owns infill industrial real estate in six major coastal U.S. markets. Six markets that consistently demonstrate the strong operating fundamentals of lower vacancy and higher rent growth: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington, D.C.
Conservative Leverage
Financial flexibility is important to long-term performance and the ability to take advantage of investment opportunities. We target debt plus preferred stock levels no higher than 35% of enterprise value, a fixed-charge coverage ratio of more than 2.0x and a net debt-to-adjusted EBITDA ratio below 5.0x. We are BBB+ rated by Fitch. Our focus is on per share, rather than aggregate, results.
Strong Governance
We’re committed to strong corporate governance and transparency for shareholders. Terreno’s independent directors stand for election every year. We’ve opted out of anti-takeover provisions and stockholder rights plans and we won’t opt back in to those provisions without stockholder approval.
Latest News
November 18, 2024 Terreno Realty
Terreno Realty Corporation Announces Redevelopment Completion in Hawthorne, CA
November 15, 2024 Terreno Realty
Terreno Realty Corporation Sells Property in Union City, CA for $13.0 Million
November 7, 2024 Terreno Realty
Terreno Realty Corporation Announces Lease Renewal in Jamaica Queens, NY
Superior Long-term Results
11.2%
Average Cash SSNOI
Growth Since IPO
12.9%
Unleveraged IRR on 34
Sold Properties Since IPO
12.5%
Dividend CAGR
Since 2011 Initiation
11.1%