Terreno(TRNO)2025-05-07 20:00Property Portfolio and Occupancy - As of March 31, 2025, Terreno Realty Corporation owned a total of 298 buildings aggregating approximately 19.3 million square feet, with an occupancy rate of approximately 96.6%[93] - The company operates in six major coastal U.S. markets, with the highest percentage of rentable square feet located in Miami at 23.1%[97] - As of March 31, 2025, the occupancy rate for improved land parcels was approximately 95.1%[97] - As of March 31, 2025, the same store pool occupancy was approximately 97.4%, compared to 96.3% in the prior year[123] - Approximately 68.0% of the company's total rentable square feet will have lease expirations within five years, allowing for potential rent increases[118] Financial Performance - Total revenues increased by approximately $25.4 million, or 29.9%, for the three months ended March 31, 2025, compared to the same period in 2024, driven by new and renewed leases and property acquisitions[127] - Total rental revenues rose to $86.3 million, a 28.7% increase from $67.0 million in the prior year, with same store rental revenues growing by 2.6%[126] - Net operating income increased by 27.3% to $81.7 million, up from $64.1 million in the same period last year[126] - The company reported a net income of $36.1 million for the three months ended March 31, 2025, compared to $48.1 million for the same period in 2024[146] - Adjusted EBITDA for the three months ended March 31, 2025, was approximately $59.9 million, down from $75.4 million in the same period of 2024[146] Rental Income and Lease Activity - The annualized base rent as of March 31, 2025, was $327.8 million, with warehouse/distribution properties contributing 79.1% of this total[95] - The annualized base rent per occupied square foot was $15.69 across the portfolio as of March 31, 2025[97] - The largest customer accounted for approximately 5.5% of the total annualized base rent, with 663 customers in total[93] - Cash rent changes on new and renewed leases for approximately 0.6 million square feet were about 34.2% higher compared to previous rental rates[105] - The company expects rental rates for new or renewed leases in 2025 to be above current rates[105] Development and Capital Expenditures - The company has five properties under development or redevelopment, expected to consist of eight buildings totaling approximately 0.8 million square feet, with a total expected investment of approximately $392.8 million[97] - Development and redevelopment costs for the same period were $21,599,000, down 37.8% from $34,756,000 in 2024[98] - The estimated stabilized cap rate for properties under development is 5.7%, with an average pre-leased percentage of 48.3%[108] - The company completed the redevelopment of one property during the three months ended March 31, 2025, and capitalized interest associated with development activities was approximately $1.3 million[109] Debt and Capital Structure - The company maintains a conservative capital structure with a goal to keep consolidated indebtedness below 35% of total enterprise value and a net debt-to-adjusted EBITDA ratio below 5.0x[135] - As of March 31, 2025, the company had $600 million in a revolving credit facility and $200 million in term loans, with no borrowings outstanding on the revolving credit facility[140] - Total debt, net, increased from $741.9 million as of March 31, 2024, to $771.8 million as of March 31, 2025[146] - The weighted average interest rate on total debt was 3.8% as of March 31, 2025, compared to 5.6% for the mortgage loan[145] Cash Flow and Dividends - Net cash provided by operating activities for the three months ended March 31, 2025, was approximately $61.4 million, up from $47.0 million for the same period in 2024, primarily due to increased cash flows from newly acquired properties and higher rents[149] - A cash dividend of $0.49 per share was declared on May 6, 2025, payable on July 11, 2025[115] - The company declared a cash dividend of $0.49 per share on February 4, 2025, payable on April 4, 2025[147] Expenses and Cost Management - Property operating expenses rose by approximately $7.9 million, or 37.7%, primarily due to property acquisitions and increased insurance premiums and real estate taxes[128] - General and administrative expenses increased by approximately $1.2 million, or 11.6%, primarily due to higher compensation expenses and an increase in the number of employees[130] - Interest expense increased by approximately $2.7 million, or 51.3%, primarily due to a decrease in capitalized interest for development properties[132] Sales and Acquisitions - The company sold two properties in the San Francisco Bay Area for a total sales price of $24.88 million, resulting in a total gain of $11.84 million[110] - The company has two outstanding contracts to acquire industrial properties for a total purchase price of approximately $49.0 million, subject to due diligence[116] - The company plans to acquire two industrial properties for a total price of $49.0 million, subject to satisfactory due diligence[153] Other Financial Metrics - FFO attributable to common stockholders increased by $11.886 million to $62.903 million, representing a 23.3% growth compared to $51.017 million in the prior year[157] - Same store NOI increased by $2.054 million to $64.613 million, a 3.3% rise compared to $62.559 million in the same period last year[161] - Cash-basis same store NOI grew by approximately $4.0 million to $61.902 million, reflecting a 7.0% increase from $57.870 million in 2024[161] - The company experienced a bad debt expense of approximately $1.7 million for the three months ended March 31, 2025, which included a straight-line rent reserve of $0.4 million[158]