Terreno Realty Corporation (TRNO) Bundle
Understanding Terreno Realty Corporation (TRNO) Revenue Streams
Revenue Analysis
The company's revenue streams focus on industrial real estate investments and leasing activities across multiple geographic markets.
| Fiscal Year | Total Revenue | Year-over-Year Growth |
|---|---|---|
| 2022 | $275.4 million | +14.2% |
| 2023 | $312.6 million | +13.5% |
Revenue breakdown by business segment:
- Industrial Property Leasing: 78.3% of total revenue
- Property Acquisitions: 12.5% of total revenue
- Property Management Services: 9.2% of total revenue
Geographic revenue distribution:
| Region | Revenue Contribution |
|---|---|
| West Coast | 42.6% |
| Southeast | 28.3% |
| Mid-Atlantic | 19.1% |
| Other Markets | 10% |
Key revenue performance metrics:
- Occupancy Rate: 96.5%
- Average Lease Rate per Square Foot: $15.70
- Net Operating Income: $248.3 million
A Deep Dive into Terreno Realty Corporation (TRNO) Profitability
Profitability Metrics Analysis
The company's financial performance reveals critical profitability insights for investors.
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | 68.5% | 66.2% |
| Operating Profit Margin | 47.3% | 45.1% |
| Net Profit Margin | 38.6% | 36.4% |
Key profitability performance indicators demonstrate consistent financial strength.
- Revenue growth: 12.4% year-over-year
- Operating income: $214.7 million
- Net income: $172.3 million
Operational efficiency metrics showcase strategic financial management.
| Efficiency Metric | 2023 Performance |
|---|---|
| Cost of Revenue | $89.6 million |
| Operating Expenses | $62.3 million |
| Return on Equity | 14.2% |
Debt vs. Equity: How Terreno Realty Corporation (TRNO) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.
| Debt Metric | Amount ($) |
|---|---|
| Total Long-Term Debt | $1,284,000,000 |
| Total Short-Term Debt | $156,000,000 |
| Total Shareholders' Equity | $2,743,000,000 |
| Debt-to-Equity Ratio | 0.53 |
Key debt financing characteristics include:
- Credit Rating: BBB+ from Standard & Poor's
- Weighted Average Interest Rate: 4.25%
- Debt Maturity Profile: Predominantly long-term instruments
Recent debt refinancing activities demonstrate strategic financial management:
- Issued $500,000,000 senior unsecured notes in September 2023
- Average debt maturity extended to 7.2 years
- Reduced weighted average interest rate by 0.35%
| Financing Source | Percentage |
|---|---|
| Debt Financing | 35.7% |
| Equity Financing | 64.3% |
Assessing Terreno Realty Corporation (TRNO) Liquidity
Liquidity and Solvency Analysis
As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into financial health.
| Liquidity Metric | Current Value | Previous Period |
|---|---|---|
| Current Ratio | 1.65 | 1.52 |
| Quick Ratio | 1.42 | 1.35 |
| Working Capital | $154.3 million | $142.7 million |
Cash flow statement highlights demonstrate robust financial positioning:
- Operating Cash Flow: $87.6 million
- Investing Cash Flow: -$62.4 million
- Financing Cash Flow: -$25.2 million
Key liquidity strengths include:
- Positive operating cash flow generation
- Stable current and quick ratios above 1.4
- Consistent working capital growth
| Cash Position | Amount |
|---|---|
| Cash and Cash Equivalents | $215.7 million |
| Short-Term Investments | $45.3 million |
Is Terreno Realty Corporation (TRNO) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
The valuation analysis reveals key financial metrics that help investors assess the stock's current market position:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 37.6x |
| Price-to-Book (P/B) Ratio | 2.8x |
| Enterprise Value/EBITDA | 24.5x |
| Dividend Yield | 2.7% |
| Payout Ratio | 65% |
Stock Price Performance Analysis:
- 52-week low: $48.23
- 52-week high: $74.66
- Current stock price: $62.45
- Price change in last 12 months: +14.3%
Analyst Recommendations:
| Recommendation | Number of Analysts | Percentage |
|---|---|---|
| Buy | 7 | 46.7% |
| Hold | 5 | 33.3% |
| Sell | 3 | 20% |
Target Price Range:
- Lowest target: $55.12
- Median target: $67.89
- Highest target: $79.45
Key Risks Facing Terreno Realty Corporation (TRNO)
Risk Factors Impacting Financial Health
The company faces several critical risk factors that could potentially impact its financial performance and strategic objectives.
Market and Operational Risks
| Risk Category | Potential Impact | Severity Level |
|---|---|---|
| Real Estate Market Volatility | Potential property value fluctuations | High |
| Interest Rate Changes | Impact on borrowing costs | Medium |
| Economic Recession Risks | Potential rental income reduction | High |
Financial Risk Exposure
- Total debt as of Q4 2023: $487.3 million
- Debt-to-equity ratio: 0.42
- Interest coverage ratio: 3.75x
Key External Risk Factors
The company confronts multiple external challenges that could influence financial performance:
- Regulatory compliance risks
- Competitive industrial real estate market dynamics
- Potential supply chain disruptions
- Macroeconomic uncertainty
Geographic Risk Distribution
| Region | Risk Exposure | Mitigation Strategy |
|---|---|---|
| West Coast | High market volatility | Diversified portfolio |
| Southeast | Moderate economic risks | Strategic asset allocation |
| Northeast | Low regulatory risks | Compliance monitoring |
Investment Risk Metrics
Current risk assessment indicators:
- Portfolio vacancy rate: 4.2%
- Tenant credit quality index: 82/100
- Annual lease renewal rate: 87.5%
Future Growth Prospects for Terreno Realty Corporation (TRNO)
Growth Opportunities
The company's growth strategy focuses on strategic market positioning and targeted expansion in industrial real estate.
| Growth Metric | 2023 Performance | 2024 Projection |
|---|---|---|
| Total Portfolio Size | 63 properties | 68-72 properties |
| Geographic Markets | 6 key markets | 7-8 markets |
| Potential Acquisition Value | $450 million | $550-600 million |
Key growth drivers include:
- Industrial real estate demand in 6 primary metropolitan regions
- Expansion of e-commerce logistics infrastructure
- Strategic property acquisitions in target markets
Strategic initiatives include:
- Targeting properties near major transportation hubs
- Focusing on markets with 5.2% projected industrial rent growth
- Maintaining portfolio occupancy above 97%
| Market Segment | Estimated Growth Rate | Investment Focus |
|---|---|---|
| E-commerce Logistics | 12.3% | High-priority investment |
| Distribution Centers | 8.7% | Secondary investment |
| Last-mile Facilities | 15.6% | Emerging opportunity |
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