> 257 Buildings
> 15.8 Million Square Feet
> 46 Improved Land Parcels
> 563 Customers
We believe successful long-term industrial property investment has four key features:
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.
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.
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.
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.
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 debt-to-adjusted EBITDA ratio below 6.0x. Our focus is on per share, rather than aggregate, results.
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.