NYSE:TRNO

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Second-rate dividend payer with limited growth.


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

Stable Share Price: TRNO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.8%

TRNO

15.1%

US REITs

9.4%

US Market


1 Year Return

20.0%

TRNO

-14.1%

US REITs

-6.8%

US Market

Return vs Industry: TRNO exceeded the US REITs industry which returned -27.1% over the past year.

Return vs Market: TRNO exceeded the US Market which returned -15.9% over the past year.


Shareholder returns

TRNOIndustryMarket
7 Day10.8%15.1%9.4%
30 Day-4.2%-12.2%-3.9%
90 Day-4.0%-18.4%-16.5%
1 Year22.6%20.0%-10.5%-14.1%-4.8%-6.8%
3 Year91.9%78.9%6.0%-7.3%23.4%15.2%
5 Year166.9%134.1%26.3%0.5%41.3%25.7%

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?

61.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TRNO ($47.46) is trading above our estimate of fair value ($40.83)

Significantly Below Fair Value: 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 (55.4x) compared to the REITs industry average (22.5x).

PE vs Market: TRNO is poor value based on its PE Ratio (55.4x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: TRNO is poor value based on its PEG Ratio (6.8x)


Price to Book Ratio

PB vs Industry: TRNO is overvalued based on its PB Ratio (2.1x) compared to the US REITs industry average (1.1x).


Next Steps

Future Growth

How is Terreno Realty forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRNO's forecast earnings growth (8.2% per year) is above the savings rate (1.7%).

Earnings vs Market: TRNO's earnings (8.2% per year) are forecast to grow slower than the US market (13.4% per year).

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

Revenue vs Market: TRNO's revenue (9.5% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: TRNO's revenue (9.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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?

41.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRNO has high quality earnings.

Growing Profit Margin: TRNO's current net profit margins (32.3%) are lower than last year (41.5%).


Past Earnings Growth Analysis

Earnings Trend: TRNO's earnings have grown significantly by 41.9% 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 (-12.3%) over the past year, making it difficult to compare to the REITs industry average (4.3%).


Return on Equity

High ROE: TRNO's Return on Equity (3.7%) is considered low.


Next Steps

Financial Health

How is Terreno Realty's financial position?


Financial Position Analysis

Short Term Liabilities: TRNO's short term assets ($156.3M) exceed its short term liabilities ($45.3M).

Long Term Liabilities: TRNO's short term assets ($156.3M) do not cover its long term liabilities ($546.1M).


Debt to Equity History and Analysis

Debt Level: TRNO's debt to equity ratio (32.4%) is considered satisfactory.

Reducing Debt: TRNO's debt to equity ratio has reduced from 40.5% to 32.4% over the past 5 years.

Debt Coverage: TRNO's debt is not well covered by operating cash flow (19.3%).

Interest Coverage: TRNO's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


Next Steps

Dividend

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

2.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TRNO's dividend (2.28%) is higher than the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: TRNO's dividend (2.28%) is low compared to the top 25% of dividend payers in the US market (5.82%).


Stability and Growth of Payments

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 (71%), TRNO's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TRNO's dividends in 3 years are forecast to be thoroughly covered by earnings (1.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.9yrs

Average management tenure


CEO

W. Baird (58yo)

10.17s

Tenure

US$3,218,306

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 ($USD3.22M) is below average for companies of similar size in the US market ($USD5.71M).

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


Leadership Team

NamePositionTenureCompensationOwnership
W. Baird
Co-Founder10.17yrsUS$3.22m1.01% $35.6m
Michael Coke
Co-Founder10.17yrsUS$3.22m0.69% $24.3m
Jaime Cannon
Executive VP6.92yrsUS$1.81m0.13% $4.5m
John Meyer
Executive Vice President4.67yrsUS$1.81m0.15% $5.2m
Andrew Burke
Executive Vice President4.67yrsUS$1.81m0.12% $4.3m

6.9yrs

Average Tenure

51yo

Average Age

Experienced Management: TRNO's management team is seasoned and experienced (6.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
W. Baird
Co-Founder10.17yrsUS$3.22m1.01% $35.6m
Michael Coke
Co-Founder10.17yrsUS$3.22m0.69% $24.3m
LeRoy Carlson
Independent Director10.17yrsUS$140.02k0.063% $2.2m
Douglas Pasquale
Lead Director10.17yrsUS$140.02k0.14% $5.1m
Dennis Polk
Independent Director10.17yrsUS$140.02k0.069% $2.4m
Gabriela Parcella
Independent Director1.92yrsUS$140.02k0.015% $534.1k
David Lee
Independent Director1.17yrsUS$136.68k0.011% $380.8k

10.2yrs

Average Tenure

57yo

Average Age

Experienced Board: TRNO's board of directors are seasoned and experienced ( 10.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.1%.


Top Shareholders

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$3.532b
  • Shares outstanding: 67.18m
  • 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 Washington, D.C. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 02:49
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.