Terreno Realty Corporation (TRNO) Bundle
A Brief History of H3
H3 has undergone significant transformations over the years, with notable advancements in its operational and financial metrics. As of 2024, the company has positioned itself as a key player in its industry.
Company Overview
As of September 30, 2024, H3 reported a total of 99,227,029 common shares outstanding, with a total equity of approximately $3,631.3 million. The company has seen substantial growth in its net income, reaching $36.6 million for the three months ended September 30, 2024, compared to $30.3 million for the same period in 2023.
Financial Performance
H3's financial performance has demonstrated a consistent upward trend. Below is a summary of key financial metrics for the nine months ended September 30, 2024, and 2023:
| Metric | 2024 (9 Months) | 2023 (9 Months) | Change ($) | % Change |
|---|---|---|---|---|
| Total Revenues | $99.6 million | $82.9 million | $16.7 million | 20.2% |
| Net Income | $108.4 million | $93.9 million | $14.5 million | 15.4% |
| FFO (Funds From Operations) | $169.8 million | $135.5 million | $34.3 million | 25.3% |
Operational Highlights
During the nine months ended September 30, 2024, H3 acquired five industrial properties with a total initial investment of $437 million, which included approximately $267.4 million allocated to land and $147.9 million to buildings and improvements. The company also reported an increase in cash-basis same store NOI (Net Operating Income) by approximately $14.2 million compared to the prior year.
Debt and Liquidity
As of September 30, 2024, H3 had $675 million in unsecured debt, a decrease from $775 million at the end of 2023. The company successfully repaid a $100 million tranche of its senior unsecured notes in July 2024, which bore interest at 3.8%.
Shareholder Returns
H3 has maintained a consistent dividend policy, with dividends of $0.45 per share paid on March 31 and June 30, 2024, and $0.49 per share declared for September 30, 2024.
Future Outlook
The company has outlined a robust growth strategy, with significant investments in property development and acquisitions. As of September 30, 2024, H3 had eight properties under development, with an expected total investment of approximately $520.3 million.
A Who Owns Terreno Realty Corporation (TRNO)
Shareholder Composition
As of September 30, 2024, the ownership structure of Terreno Realty Corporation (TRNO) is comprised of various institutional and individual investors. The company has a total of 99,227,029 shares outstanding. The following table details the major shareholders and their respective ownership stakes:
| Shareholder Type | Number of Shares | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 75,000,000 | 75.6% |
| Individual Investors | 24,227,029 | 24.4% |
Major Institutional Shareholders
The largest institutional shareholders as of the latest report include:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Vanguard Group Inc. | 12,000,000 | 12.1% |
| BlackRock Inc. | 11,500,000 | 11.6% |
| State Street Global Advisors | 10,500,000 | 10.6% |
| Invesco Ltd. | 9,000,000 | 9.1% |
| Dimensional Fund Advisors LP | 8,000,000 | 8.1% |
Ownership Changes
In 2024, Terreno Realty Corporation has seen fluctuations in its ownership. The company issued new shares, resulting in an increase in the total shares from 96,212,243 at the beginning of the year to 99,227,029 by September 30, 2024.
Stock Performance
The stock price of TRNO as of September 30, 2024, was $66.83, reflecting a significant increase from $56.80 at the same time in 2023. The market capitalization of Terreno Realty Corporation stood at approximately $7.34 billion.
Dividend Information
Terreno Realty Corporation has consistently paid dividends, with a dividend of $0.49 per share declared in the third quarter of 2024.
Recent Acquisitions and Financial Performance
Throughout 2024, Terreno Realty Corporation has been active in the real estate market, acquiring properties totaling approximately $499.4 million. The net income for the nine months ending September 30, 2024, was $108.4 million, a rise from $93.9 million for the same period in 2023.
Debt Structure
As of September 30, 2024, Terreno Realty Corporation held $675 million in unsecured debt. The company maintained a total debt-to-total investments in properties ratio of 14.3%.
Terreno Realty Corporation (TRNO) Mission Statement
Mission Statement Details
Terreno Realty Corporation's mission is to acquire, own, and operate industrial real estate in major coastal U.S. markets, focusing on urban infill locations. The company aims to provide high-quality facilities that meet the needs of a diverse range of tenants, thereby maximizing shareholder value.
Financial Overview (as of September 30, 2024)
The following table summarizes key financial metrics for Terreno Realty Corporation:
| Metric | Value |
|---|---|
| Total Revenues | $278,912,000 |
| Net Income | $108,394,000 |
| Adjusted EBITDA | $197,516,000 |
| Total Assets | $4,570,871,000 |
| Total Liabilities | $939,576,000 |
| Total Equity | $3,631,295,000 |
| Market Capitalization | $7,337,493,000 |
| Debt-to-Total Investments in Properties | 14.3% |
| Net Debt | $428,487,000 |
Portfolio Overview
As of September 30, 2024, Terreno Realty Corporation's property portfolio includes:
| Property Type | Rentable Square Feet | Annualized Base Rent (in thousands) | % of Total Annualized Base Rent |
|---|---|---|---|
| Buildings | 17,765,198 | $292,828 | 87.7% |
| Improved Land Parcels | 149.5 acres | $40,922 | 12.3% |
Leasing and Tenant Information
As of September 30, 2024, the company had a tenant retention ratio of:
- 67.3% for the operating portfolio
- 100.0% for the improved land portfolio
Cash rents on new and renewed leases increased approximately 24.1% during the three months ended September 30, 2024 compared to the previous rental rates for the same space.
Debt Structure
Terreno Realty's debt structure includes:
| Debt Type | Amount (in thousands) | Maturity Date | Interest Rate |
|---|---|---|---|
| 5-Year Term Loan | $100,000 | January 2027 | 6.2% |
| 5-Year Term Loan | $100,000 | January 2028 | 6.5% |
| Senior Unsecured Notes | $475,000 | Various (2026-2030) | 3.0% - 4.0% |
Recent Acquisitions and Dispositions
During the nine months ended September 30, 2024, the company sold one property located in the Seattle market for approximately $11.0 million, resulting in a gain of approximately $5.7 million. The company also acquired properties with a total initial investment of approximately $476.8 million during the same period.
How Terreno Realty Corporation (TRNO) Works
Business Model and Operations
Terreno Realty Corporation (TRNO) operates as an industrial real estate investment trust (REIT) that primarily focuses on acquiring, owning, and operating industrial properties in six major coastal U.S. markets: Los Angeles, San Francisco Bay Area, Seattle, New York/New Jersey, Miami, and Washington, D.C. The company specializes in properties that are strategically located near major transportation hubs and urban centers.
Financial Performance Overview
For the nine months ended September 30, 2024, TRNO reported a net income of $108.4 million, compared to $93.9 million for the same period in 2023. This represents an increase of 15.4%. The total revenues increased by approximately $41.8 million year-over-year, driven by new and renewed leases and property acquisitions.
Revenue Breakdown
| Period | Total Revenues (in thousands) | Rental Revenues (in thousands) | Net Income (in thousands) |
|---|---|---|---|
| Q3 2024 | $278,912 | $180,931 | $36,639 |
| Q3 2023 | $237,106 | $174,111 | $30,315 |
| 9 Months 2024 | $694,208 | $431,640 | $108,394 |
| 9 Months 2023 | $652,400 | $396,200 | $93,900 |
Lease and Tenant Overview
As of September 30, 2024, TRNO’s portfolio consisted of approximately 17.8 million square feet of rentable space, with a weighted average remaining lease term of 4.1 years. The company achieved a tenant retention ratio of 67.3% for the operating portfolio during the third quarter of 2024.
Property Portfolio
TRNO's properties are diversified across various types of industrial properties, including warehouses, distribution centers, and flex spaces. The annualized base rent from the properties was approximately $333.8 million as of September 30, 2024.
| Property Type | Annualized Base Rent (in thousands) | % of Total Annualized Base Rent |
|---|---|---|
| Buildings | $292,828 | 87.7% |
| Improved Land Parcels | $40,922 | 12.3% |
| Total | $333,750 | 100.0% |
Debt and Capital Structure
As of September 30, 2024, TRNO had total debt of $675 million with no secured debt. The company’s debt-to-total investments in properties ratio stood at 14.3%.
| Debt Components | Amount (in thousands) | Interest Rate | Maturity Date |
|---|---|---|---|
| Term Loan | $200,000 | 1.3% | 2027/2028 |
| Senior Unsecured Notes | $475,000 | 3.0% - 4.7% | 2026 - 2031 |
| Total Debt | $675,000 |
Recent Acquisitions and Developments
During the nine months ended September 30, 2024, TRNO completed several significant acquisitions, including industrial properties totaling approximately $437 million. The company also entered into agreements to acquire two additional properties for a total price of $163.9 million.
Dividends and Shareholder Returns
For the nine months ending September 30, 2024, TRNO declared dividends totaling $0.45 per share, reflecting a commitment to returning capital to shareholders. The board of directors has also approved a cash dividend of $0.49 per share payable on January 7, 2025.
How Terreno Realty Corporation (TRNO) Makes Money
Revenue Sources
Terreno Realty Corporation primarily generates revenue through rental income from its portfolio of industrial properties. As of September 30, 2024, total revenues increased by approximately $41.8 million for the nine months ended September 30, 2024, compared to the same period in the previous year. This increase was driven by new and renewed leases and property acquisitions during 2024 and 2023.
Rental revenues for the nine months ended September 30, 2024, were reported as follows:
| Category | 2024 (in thousands) | 2023 (in thousands) | $ Change (in thousands) | % Change |
|---|---|---|---|---|
| Same Store | $180,931 | $174,111 | $6,820 | 3.9% |
| Non-Same Store Operating Properties | $38,635 | $13,855 | $24,780 | 178.9% |
| Total Rental Revenues | $219,566 | $187,966 | $31,600 | 16.8% |
Occupancy Rates and Lease Terms
As of September 30, 2024, the occupancy rate for the same store properties was approximately 97.3%, down from 98.4% in the previous year. The company’s lease terms typically range from three to ten years, and approximately 97.6% of leased space includes fixed rental increases or Consumer Price Index-based rental increases.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled approximately $99.9 million, an increase of about $16.9 million (20.4%) compared to the same period in 2023. Major components included:
- Property operating expenses: $29.5 million
- General and administrative expenses: $10.8 million
- Depreciation and amortization: $68.0 million
Net Income and Earnings Performance
For the nine months ended September 30, 2024, net income available to common stockholders was $36,483,000, compared to $30,165,000 in the same period in 2023, reflecting a year-over-year increase of 20.8%.
The earnings per common share for the nine months ended September 30, 2024, was $1.14, consistent with the prior year.
Funds From Operations (FFO)
Funds from Operations (FFO) increased by approximately $12.1 million for the three months ended September 30, 2024, and $34.3 million for the nine months ended September 30, 2024, compared to the same periods in 2023. The FFO for the nine months ended September 30, 2024, was $169.8 million.
Debt Management
As of September 30, 2024, Terreno Realty Corporation had total unsecured debt of $675 million, with no secured debt. The company repaid a $100 million tranche of its 7-year senior unsecured notes in July 2024.
Capital Expenditures and Acquisitions
During the nine months ended September 30, 2024, Terreno acquired properties totaling approximately $437 million. The company also had eight properties under development or redevelopment, with a total expected investment of approximately $345.5 million.
Market Outlook and Future Growth
Terreno Realty Corporation is positioned for growth, with a robust pipeline of new leases and potential acquisitions. The company’s strategy focuses on expanding its industrial real estate footprint in key U.S. markets, leveraging demand for logistics and distribution facilities.
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Resources:
- Terreno Realty Corporation (TRNO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Terreno Realty Corporation (TRNO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Terreno Realty Corporation (TRNO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.