NYSE:TRNO

Stock Analysis Report

Executive Summary

Terreno Realty Corporation acquires, owns and operates industrial real estate in six major coastal U.S.

Snowflake

Fundamentals

Limited growth with questionable track record.


Similar Companies

Share Price & News

How has Terreno Realty's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.1%

TRNO

0.1%

US REITs

3.4%

US Market


1 Year Return

46.5%

TRNO

18.7%

US REITs

5.4%

US Market

Return vs Industry: TRNO exceeded the US REITs industry which returned 18.7% over the past year.

Return vs Market: TRNO exceeded the US Market which returned 5.4% over the past year.


Shareholder returns

TRNOIndustryMarket
7 Day1.1%0.1%3.4%
30 Day3.1%1.7%-1.0%
90 Day6.3%4.7%-0.4%
1 Year49.8%46.5%24.0%18.7%7.7%5.4%
3 Year114.7%99.5%33.6%16.6%46.2%36.8%
5 Year195.0%157.8%63.6%29.1%65.6%47.5%

Price Volatility Vs. Market

How volatile is Terreno Realty's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Terreno Realty undervalued compared to its fair value and its price relative to the market?

54.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: TRNO ($52.74) is trading above our estimate of fair value ($28.77)

Significantly Undervalued: TRNO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TRNO is poor value based on its PE Ratio (54.7x) compared to the REITs industry average (35.4x).

PE vs Market: TRNO is poor value based on its PE Ratio (54.7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: TRNO is poor value based on its PEG Ratio (9.3x)


Price to Book Ratio

PB vs Industry: TRNO is overvalued based on its PB Ratio (2.4x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Terreno Realty forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRNO's forecast earnings growth (5.9% per year) is above the savings rate (2.7%).

Earnings vs Market: TRNO's earnings (5.9% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: TRNO's earnings are forecast to grow, but not significantly.

Revenue vs Market: TRNO's revenue (14% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: TRNO's revenue (14% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if TRNO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Terreno Realty performed over the past 5 years?

49.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TRNO's earnings have grown significantly by 49.2% per year over the past 5 years.

Accelerating Growth: TRNO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TRNO had negative earnings growth (-1.7%) over the past year, making it difficult to compare to the REITs industry average (17%).


Return on Equity

High ROE: TRNO's Return on Equity (4.1%) is considered low.


Return on Assets

ROA vs Industry: TRNO's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: TRNO has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Terreno Realty's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: TRNO has a high level of physical assets or inventory.

Debt Coverage by Assets: TRNO's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

Asset Level: TRNO's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if TRNO has a sufficient allowance for bad loans.

Low Risk Liabilities: TRNO reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if TRNO has an acceptable proportion of non-loan assets held.

Low Risk Deposits: TRNO has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if TRNO has an appropriate level of bad loans.


Next Steps

Dividend

What is Terreno Realty's current dividend yield, its reliability and sustainability?

2.05%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.5%markettop25%3.8%industryaverage3.7%forecastin3Years2.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TRNO's dividend (2.05%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: TRNO's dividend (2.05%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: Whilst dividend payments have been stable, TRNO has been paying a dividend for less than 10 years.

Growing Dividend: TRNO's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69.6%), TRNO's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Terreno Realty's salary, the management and board of directors tenure and is there insider trading?

6.4yrs

Average management tenure


CEO

W. Baird (58yo)

9.7yrs

Tenure

US$2,118,712

Compensation

Mr. W. Blake Baird has been Chief Executive Officer, Chairman and Co-Founder of Terreno Realty Corporation since February 2010. Prior to co-founding Terreno Realty Corporation, Mr. Baird served as the Pres ...


CEO Compensation Analysis

Compensation vs. Market: W.'s total compensation ($USD2.12M) is below average for companies of similar size in the US market ($USD5.10M).

Compensation vs Earnings: W.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

6.4yrs

Average Tenure

51yo

Average Age

Experienced Management: TRNO's management team is seasoned and experienced (6.4 years average tenure).


Board Age and Tenure

9.7yrs

Average Tenure

57yo

Average Age

Experienced Board: TRNO's board of directors are considered experienced (9.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$210,20012 Feb 19
David Lee
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$42.04

Ownership Breakdown


Management Team

  • W. Baird (58yo)

    Chairman & CEO

    • Tenure: 9.7yrs
    • Compensation: US$2.12m
  • Mike Coke (51yo)

    President & Director

    • Tenure: 9.7yrs
    • Compensation: US$2.12m
  • Jaime Cannon (44yo)

    Executive VP & CFO

    • Tenure: 6.4yrs
    • Compensation: US$952.54k
  • John Meyer (59yo)

    Executive Vice President

    • Tenure: 4.2yrs
    • Compensation: US$952.54k
  • Andy Burke (43yo)

    Executive Vice President

    • Tenure: 4.2yrs
    • Compensation: US$972.54k

Board Members

  • LeRoy Carlson (73yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$130.02k
  • Doug Pasquale (64yo)

    Lead Director

    • Tenure: 9.7yrs
    • Compensation: US$130.02k
  • W. Baird (58yo)

    Chairman & CEO

    • Tenure: 9.7yrs
    • Compensation: US$2.12m
  • Mike Coke (51yo)

    President & Director

    • Tenure: 9.7yrs
    • Compensation: US$2.12m
  • Dennis Polk (52yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$130.02k
  • Gabby Parcella (50yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$118.77k
  • David Lee (57yo)

    Independent Director

    • Tenure: 0.7yrs

Company Information

Terreno Realty Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Terreno Realty Corporation
  • Ticker: TRNO
  • Exchange: NYSE
  • Founded: 2009
  • Industry: Industrial REITs
  • Sector: Real Estate
  • Market Cap: US$3.437b
  • Shares outstanding: 65.17m
  • Website: https://www.terreno.com

Number of Employees


Location

  • Terreno Realty Corporation
  • 101 Montgomery Street
  • Suite 200
  • San Francisco
  • California
  • 94104
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRNONYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 2010

Biography

Terreno Realty Corporation 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 00:26
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.