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Terreno Realty Corporation (TRNO)

Company Dividend Discount ModelIndustry: REIT - IndustrialSector: Real Estate

Valuation Snapshot

Stable Growth$74.08 - $196.51$113.27
Multi-Stage$52.94 - $57.71$55.28
Blended Fair Value$84.28
Current Price$56.07
Upside50.31%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS22.45%27.21%1.721.341.060.830.740.630.510.410.330.27
YoY Growth--28.79%26.48%26.92%13.17%17.64%23.56%22.88%26.17%20.46%74.67%
Dividend Yield--2.72%2.09%1.64%1.12%1.27%1.21%1.21%1.19%1.17%1.16%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)320.88
(-) Cash Dividends Paid (M)199.00
(=) Cash Retained (M)121.88
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)64.1840.1124.07
Cash Retained (M)121.88121.88121.88
(-) Cash Required (M)-64.18-40.11-24.07
(=) Excess Retained (M)57.7181.7797.82
(/) Shares Outstanding (M)101.61101.61101.61
(=) Excess Retained per Share0.570.800.96
LTM Dividend per Share1.961.961.96
(+) Excess Retained per Share0.570.800.96
(=) Adjusted Dividend2.532.762.92
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$74.08$113.27$196.51
Upside / Downside32.12%102.02%250.47%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)320.88341.74363.95387.60412.80439.63452.82
Payout Ratio62.02%67.61%73.21%78.81%84.40%90.00%92.50%
Projected Dividends (M)199.00231.06266.44305.46348.42395.67418.86

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)209.80211.79213.78
Year 2 PV (M)219.67223.86228.08
Year 3 PV (M)228.67235.23241.92
Year 4 PV (M)236.83245.94255.31
Year 5 PV (M)244.21256.00268.25
PV of Terminal Value (M)4,239.454,444.224,656.82
Equity Value (M)5,378.645,617.055,864.17
Shares Outstanding (M)101.61101.61101.61
Fair Value$52.94$55.28$57.71
Upside / Downside-5.59%-1.41%2.93%

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