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Terreno Realty Corporation (TRNO)

Company Dividend Discount ModelIndustry: REIT - IndustrialSector: Real Estate

Valuation Snapshot

Stable Growth$74.45 - $198.75$114.06
Multi-Stage$53.10 - $57.89$55.45
Blended Fair Value$84.76
Current Price$56.07
Upside51.17%
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 Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$74.45$114.06$198.75
Upside / Downside32.78%103.43%254.47%

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 Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)209.83211.82213.81
Year 2 PV (M)219.75223.93228.16
Year 3 PV (M)228.78235.35242.04
Year 4 PV (M)236.99246.10255.48
Year 5 PV (M)244.41256.22268.47
PV of Terminal Value (M)4,255.514,461.064,674.47
Equity Value (M)5,395.285,634.485,882.43
Shares Outstanding (M)101.61101.61101.61
Fair Value$53.10$55.45$57.89
Upside / Downside-5.30%-1.10%3.25%

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