8-K/A
Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K/A

(Amendment No. 1)

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

 

Date of Report (Date of earliest event reported): December 27, 2013

 

 

Terreno Realty Corporation

(Exact name of registrant as specified in its charter)

 

 

 

Maryland   001-34603   27-1262675
(State or other jurisdiction
of incorporation)
 

(Commission

File Number)

  (IRS Employer
Identification No.)

101 Montgomery Street, Suite 200

San Francisco, CA 94104

(Address of principal executive offices) (Zip Code)

(415) 655-4580

(Registrant’s telephone number, including area code)

 

 

Check the appropriate box below if the Form 8-K/A filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

  ¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

  ¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

  ¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

  ¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Table of Contents

This Form 8-K/A amends and supplements the registrant’s Form 8-K, filed on December 31, 2013 reporting the acquisition of JFK Airgate (the “Initial Report”), to include the historical financial statements and pro forma financial information required by Item 9.01(a) and (b) of Form 8-K. This Form 8-K/A should be read in conjunction with the Initial Report.

Item 9.01. Financial Statements and Exhibits

 

(a) Financial Statements Under Rule 3-14 of Regulation S-X
  (i) Statements of Revenues and Certain Expenses of JFK Airgate   

Report of Independent Auditors

     3   

Statements of Revenues and Certain Expenses for the nine months ended September  30, 2013 (unaudited) and the year ended December 31, 2012

     5   

Notes to the Statements of Revenues and Certain Expenses

     6   

 

(b) Unaudited Pro Forma Condensed Consolidated Information

Unaudited Pro Forma Condensed Consolidated Balance Sheet as of September 30, 2013

     10   

Notes to Unaudited Pro Forma Condensed Consolidated Balance Sheet as of September 30, 2013

     11   

Unaudited Pro Forma Condensed Consolidated Statement of Operations and Comprehensive Income for the nine months ended September 30, 2013

     12   

Notes to Unaudited Pro Forma Condensed Consolidated Statement of Operations and Comprehensive Income for the nine months ended September 30, 2013

     13   

Unaudited Pro Forma Condensed Consolidated Statement of Operations and Comprehensive Income for the year ended December 31, 2012

     15   

Notes to Unaudited Pro Forma Condensed Consolidated Statement of Operations and Comprehensive Income for the year ended December 31, 2012

     16   

 

(d) Exhibits

 

Exhibit

Number

  

Title

23.1*    Consent of Independent Auditor

 

* Filed herewith


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Report of Independent Auditors

The Board of Directors and Stockholders of

Terreno Realty Corporation

We have audited the accompanying statement of revenues and certain expenses of JFK Airgate (the “Property”), for the year ended December 31, 2012, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of the statement of revenues and certain expenses in conformity with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the statement of revenues and certain expenses that are free of material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on the statement of revenues and certain expenses based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the statement of revenues and certain expenses is free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the statement of revenues and certain expenses. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the statement of revenues and certain expenses, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the statement of revenues and certain expenses in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the statement of revenues and certain expenses.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the statement of revenues and certain expenses referred to above presents fairly, in all material respects, the revenues and certain expenses described in Note 1 of JFK Airgate for the year ended December 31, 2012, in conformity with U.S. generally accepted accounting principles.

 

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Basis of Accounting

As described in Note 1 to the financial statements, the statement of revenues and certain expenses of the Property have been prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission for inclusion in the Form 8-K/A of Terreno Realty Corporation, and is not intended to be a complete presentation of the Property’s revenues and expenses. Our opinion is not modified with respect to this matter.

/s/ Ernst & Young LLP

San Francisco, California

February 18, 2014

 

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JFK Airgate

Statements of Revenues and Certain Expenses

For the Nine Months Ended September 30, 2013 (unaudited)

and the Year Ended December 31, 2012

(in thousands)

 

     For the Nine Months
Ended
September 30, 2013
(unaudited)
     For the Year Ended
December 31, 2012
 

Revenues:

     

Rental

   $ 2,388       $ 3,255   

Tenant reimbursements

     925         946   
  

 

 

    

 

 

 

Total revenues

     3,313         4,201   

Certain expenses:

     

Property operating expenses

     731         757   

Real estate taxes

     567         717   
  

 

 

    

 

 

 

Total expenses

     1,298         1,474   
  

 

 

    

 

 

 

Revenues in excess of certain expenses

   $ 2,015       $ 2,727   
  

 

 

    

 

 

 

See accompanying notes to statements of revenues and certain expenses.

 

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JFK Airgate

Notes to Statements of Revenues and Certain Expenses

For the Nine Months Ended September 30, 2013 (unaudited)

and the Year Ended December 31, 2012

 

1. Background and Basis of Presentation

The accompanying statements of revenues and certain expenses present the results of operations of JFK Airgate (the “Property”) for the nine months ended September 30, 2013 (unaudited) and the year ended December 31, 2012. The Property was acquired by a wholly-owned subsidiary of Terreno Realty Corporation from a third-party seller, Prologis Targeted U.S. Logistics Fund, L.P., on December 27, 2013 for approximately $53.1 million. The Property is located in Queens, New York and consists of four multi-tenant industrial buildings containing 229,258 square feet (unaudited), which were approximately 99% leased to 19 tenants (unaudited) at the time of acquisition.

The accompanying statements of revenues and certain expenses have been prepared on the accrual basis of accounting. The statements of revenues and certain expenses have been prepared for the purpose of complying with the provisions of Article 3-14 of Regulation S-X promulgated by the Securities and Exchange Commission and for inclusion in this Current Report on Form 8-K/A of Terreno Realty Corporation and are not intended to be a complete presentation of the revenues and expenses of the Property for the nine months ended September 30, 2013 and the year ended December 31, 2012 as certain expenses, primarily depreciation and amortization expense and other costs not comparable to the proposed future operations of the Property have been excluded. Management is not aware of any material factors at the Property other than those disclosed above, that would cause the reported financial information not to be necessarily indicative of future operating results.

 

2. Summary of Significant Accounting Policies

Revenue Recognition

Rental revenues from operating leases are recorded on a straight-line basis over the terms of the leases. Tenant reimbursements represent recoveries from tenants for utilities and certain property maintenance expenses. Tenant reimbursements are recognized as revenues in the period the applicable costs are accrued.

Property Operating Expenses

Property operating expenses represent the direct expenses of operating the Property and include maintenance, utilities, property management fees, repairs, and insurance costs that are expected to continue in the ongoing operations of the Property. Expenditures for maintenance and repairs are charged to operations as incurred.

 

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Use of Estimates

The preparation of the statements of revenues and certain expenses in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions of the reported amounts of revenues and certain expenses during the reporting period. Actual results could differ from those estimates used in the preparation of the statements of revenues and certain expenses.

Interim Statements

The statement of revenues and certain expenses for the nine months ended September 30, 2013 is unaudited, however, in the opinion of management of Terreno Realty Corporation, all significant adjustments necessary for a fair presentation of the statement for the interim period have been included. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year of the operation of the Property.

Tenant Concentration

For the year ended December 31, 2012, three tenants accounted for approximately 54% of revenues.

Future Minimum Rental Income

Future minimum rents to be received under non-cancelable lease agreements as of December 31, 2012 were as follows (in thousands):

 

2013

   $ 3,152   

2014

     3,368   

2015

     3,058   

2016

     2,720   

2017

     2,513   

Thereafter

     846   
  

 

 

 

Total

   $ 15,657   
  

 

 

 

 

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UNAUDITED PRO FORMA FINANCIAL INFORMATION OF TERRENO REALTY CORPORATION

The following unaudited pro forma financial information of Terreno Realty Corporation (the “Company”) is based on the historical financial statements of the Company. The unaudited pro forma condensed consolidated balance sheet as of September 30, 2013 is based on the Company’s consolidated balance sheet and reflects the subsequent acquisitions of Michele, Meadow, Ethel, 8215 Dorsey, Forbes, Broadway, Pennsy and JFK Airgate and the related borrowings on the term loan payable and revolving credit facility as if such transactions had occurred on September 30, 2013. The unaudited pro forma condensed consolidated statements of operations and comprehensive income for the nine months ended September 30, 2013 and the year ended December 31, 2012 have been prepared to reflect the incremental effect of the acquisition of properties by the Company during the period from January 1, 2013 to December 27, 2013 (the “2013 Acquisitions”) and the year ended December 31, 2012 (the “2012 Acquisitions”) as if such transactions had occurred on January 1, 2013 for the September 30, 2013 statements and January 1, 2012 for the December 31, 2012 statement.

The following table summarizes the 2013 and 2012 Acquisitions (in thousands):

 

Property Name

  

Location

  

Acquisition Date

   Purchase Price
(in thousands)
     Assumed Debt  

107th Avenue

   Medley, FL    March 6, 2013    $ 5,095      $ —     

SeaTac 8th Ave

   Burien, WA    March 21, 2013      6,450        —     

240 Littlefield Avenue

   South San Francisco, CA    April 3, 2013      8,400        —     

101st Road

   Medley, FL    April 26, 2013      6,000        —     

Americas Gateway

   Doral, FL    May 22, 2013      23,725        —     

Route 100

   Elkridge, MD    June 12, 2013      16,650        —     

1 Dodge Drive

   West Caldwell, NJ    June 20, 2013      6,775        —     

17 Madison

   Fairfield, NJ    July 23, 2013      2,840        —     

550 Delancy

   Newark, NJ    July 25, 2013      15,000        —     

Melanie Lane

   East Hanover, NJ    September 30, 2013      20,000        —     

341 Michele

   Carlstadt, NJ    October 17, 2013      7,375        —     

465 Meadow

   Carlstadt, NJ    October 17, 2013      2,500        —     

60 Ethel

   Piscataway, NJ    November 6, 2013      7,000        —     

8215 Dorsey

   Jessup, MD    November 15, 2013      6,000        —     

7230 Forbes

   Lanham, MD    December 11, 2013      5,600        —     

14611 Broadway

   Gardena, CA    December 19, 2013      6,000        —     

3601 Pennsy

   Landover, MD    December 23, 2013      7,000        —     

JFK Airgate

   Queens, NY    December 27, 2013      53,111        —     
        

 

 

    

 

 

 

2013 Acquisitions

         $ 205,521      $ —     

Global Plaza

   Sterling, VA    March 16, 2012    $ 6,100      $ —     

Garfield

   Commerce, CA    May 30, 2012      52,400        —     

Whittier

   Whittier, CA    June 12, 2012      16,100        —     

Caribbean

   Sunnyvale, CA    July 3, 2012      33,718        —     

78th Avenue

   Doral, FL    July 23, 2012      4,200        —     

Manhattan Beach

   Redondo Beach, CA    July 31, 2012      14,150        —     

Carlton Court

   South San Francisco, CA    August 2, 2012      3,575        —     

Troy Hill

   Elkridge, MD    August 17, 2012      6,664        3,628   

26th Street

   Miami, FL    September 25, 2012      12,100        6,159   

Sweitzer

   Laurel, MD    October 15, 2012      6,950        —     

17600 West Valley Highway

   Tukwila, WA    December 14, 2012      8,000        5,045   

631 Brennan

   San Jose, CA    December 19, 2012      4,176        —     

South Main

   Carson, CA    December 20, 2012      12,750        —     
        

 

 

    

 

 

 

2012 Acquisitions

           180,883        14,832   
        

 

 

    

 

 

 

Total

         $ 386,404      $ 14,832   
        

 

 

    

 

 

 

 

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The unaudited pro forma financial information is not necessarily indicative of what the Company’s results of operations or financial condition would have been assuming the acquisition of properties had occurred at the beginning of the periods presented, nor is it indicative of the Company’s results of operations or financial condition for future periods. In management’s opinion, all adjustments necessary to reflect the effects of these transactions have been made. The unaudited pro forma financial information and accompanying notes should be read in conjunction with the Company’s financial statements included on Form 10-K for the year ended December 31, 2012 and Quarterly Report on Form 10-Q for the nine months ended September 30, 2013.

 

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Terreno Realty Corporation

Pro Forma Condensed Consolidated Balance Sheet

As of September 30, 2013

(in thousands – except share and per share data)

(Unaudited)

 

     Terreno Realty
Corporation (1)
    JFK Airgate (2)     Other 2013
Acquisitions (3)
    Pro Forma
Terreno Realty

Corporation
 

ASSETS

        

Investments in real estate, net

   $ 539,413      $ 53,111      $ 41,475      $ 633,999   

Cash and cash equivalents

     64,611        (21,791     (40,994     1,826   

Deferred financing costs, net

     2,071        —          —          2,071   

Other assets, net

     9,559        —          —          9,559   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

   $ 615,654      $ 31,320      $ 481      $ 647,455   
  

 

 

   

 

 

   

 

 

   

 

 

 

LIABILITIES AND EQUITY

        

Liabilities

        

Credit facility

   $ —        $ 31,000      $ —        $ 31,000   

Term loan payable

     50,000        —            50,000   

Mortgage loans payable

     109,151        —          —          109,151   

Security deposits

     3,146        320        390        3,856   

Intangible liabilities

     3,376        —          91        3,467   

Dividends payable

     3,249        —          —          3,249   

Accounts payable and other liabilities

     7,690        —          —          7,690   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

     176,612        31,320        481        208,413   

Commitments and contingencies

        

Equity

        

Stockholders’ equity

        

Preferred stock: $0.01 par value, 100,000,000 shares authorized, and 1,840,000 shares (liquidation preference of $25.00 per share) issued and outstanding

     46,000        —          —          46,000   

Common stock: $0.01 par value, 400,000,000 shares authorized, and 24,990,446 shares issued and outstanding

     249        —          —          249   

Additional paid-in capital

     394,907        —          —          394,907   

Accumulated deficit

     (2,114     —          —          (2,114
  

 

 

   

 

 

   

 

 

   

 

 

 

Total stockholders’ equity

     439,042        —          —          439,042   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities and equity

   $ 615,654      $ 31,320      $ 481      $ 647,455   
  

 

 

   

 

 

   

 

 

   

 

 

 

See accompanying notes to unaudited pro forma condensed consolidated balance sheet.

 

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Terreno Realty Corporation

Notes to Pro Forma Condensed Consolidated Balance Sheet

As of September 30, 2013

(Unaudited)

 

(1) Represents the unaudited historical consolidated balance sheet of Terreno Realty Corporation (the “Company”) as of September 30, 2013. See the historical consolidated financial statements and notes thereto included in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2013.

 

(2) Reflects the acquisition of JFK Airgate as if it had occurred on September 30, 2013 for approximately $53.1 million. The acquisition was funded by a combination of cash on hand and borrowings under the Company’s revolving credit facility.

 

(3) Reflects the acquisitions of Michele, Meadow, Ethel, Dorsey, Forbes, Broadway and Pennsy for approximately $41.5 million. The acquisitions were funded by cash on hand.

 

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Terreno Realty Corporation

Pro Forma Condensed Consolidated Statement of Operations

and Comprehensive Income

For the Nine Months Ended September 30, 2013

(in thousands – except share and per share data)

(Unaudited)

 

     Terreno Realty
Corporation (1)
    2013
Acquisitions
          Pro Forma
Adjustments
           Pro Forma
Terreno Realty
Corporation
 

REVENUES

               

Rental revenues

   $ 32,360      $ 10,583       (2)    $ —           $ 42,943   
  

 

 

   

 

 

       

 

 

      

 

 

 

Total revenues

     32,360        10,583            —             42,943   
  

 

 

   

 

 

       

 

 

      

 

 

 

COSTS AND EXPENSES

               

Property operating expenses

     9,141        2,706       (2)      —             11,847   

Depreciation and amortization

     8,796        3,797       (2)      —             12,593   

General and administrative

     6,170        —              —             6,170   

Acquisition costs

     1,861        —              (1,861     (3)         —     
  

 

 

   

 

 

       

 

 

      

 

 

 

Total costs and expenses

     25,968        6,503            (1,861        30,610   
  

 

 

   

 

 

       

 

 

      

 

 

 

OTHER INCOME (EXPENSE)

               

Interest and other income

     106        —              —             106   

Interest expense, including amortization

     (4,610     —              (830     (4)         (5,440
  

 

 

   

 

 

       

 

 

      

 

 

 

Total other income and expenses

     (4,504     —              (830        (5,334
  

 

 

   

 

 

       

 

 

      

 

 

 

Income from continuing operations

     1,888        4,080            1,031           6,999   

Discontinued operations

               

Income from discontinued operations

     1,052        —              —             1,052   
  

 

 

   

 

 

       

 

 

      

 

 

 

Net income

     2,940        4,080            1,031           8,051   

Preferred stock dividends

     (2,674     —              —             (2,674
  

 

 

   

 

 

       

 

 

      

 

 

 

Net and comprehensive income available to common stockholders

   $ 266      $ 4,080          $ 1,031         $ 5,377   
  

 

 

   

 

 

       

 

 

      

 

 

 

EARNINGS PER COMMON SHARE - BASIC AND DILUTED:

               

Net (loss) income available to common stockholders

   $ (0.04     —              —           $ 0.17   

Income from discontinued operations

     0.05        —              —           $ 0.04   
  

 

 

   

 

 

       

 

 

      

 

 

 

Net income available to common stockholders

   $ 0.01      $ —            $ —           $ 0.21   
  

 

 

   

 

 

       

 

 

      

 

 

 

BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

     19,723,266              5,109,742        (5)         24,833,008   
  

 

 

   

 

 

       

 

 

      

 

 

 

See accompanying notes to unaudited pro forma condensed consolidated statement of operations and comprehensive income.

 

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Terreno Realty Corporation

Notes to Pro Forma Condensed Consolidated Statement of Operations

and Comprehensive Income

For the Nine Months Ended September 30, 2013

(Unaudited)

 

(1) Represents the unaudited historical consolidated operations of Terreno Realty Corporation (the “Company”) for the nine months ended September 30, 2013. See the historical condensed consolidated financial statements and notes thereto included in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2013.

 

(2) The following table sets forth the incremental rental revenues, operating expenses and depreciation and amortization of the 2013 Acquisitions for the nine months ended September 30, 2013 based on the historical and pro forma operations of such properties for the periods prior to acquisition by the Company as if the properties were acquired on January 1, 2012 (dollars in thousands).

 

    

Acquisition Date

   Rental
Revenues
     Operating Expenses      Depreciation and
Amortization
     Interest Expense  

107th Avenue

   March 6, 2013    $ 111       $ 25       $ 33       $ —     

SeaTac 8th Ave

   March 21, 2013      175         37         63         —     

240 Littlefield Avenue

   April 3, 2013      —           —           —           —     

101st Road

   April 26, 2013      115         52         49         —     

Americas Gateway

   May 22, 2013      739         341         325         —     

Route 100

   June 12, 2013      539         175         382         —     

1 Dodge Drive

   June 20, 2013      330         112         233         —     

17 Madison

   July 23, 2013      169         50         98         —     

550 Delancy

   July 25, 2013      716         117         197         —     

Melanie Lane

   September 30, 2013      1,468         366         606         —     

Michele

   October 17, 2013      426         104         128         —     

Meadow

   October 17, 2013      161         46         60         —     

Ethel

   November 6, 2013      607         262         143         —     

Dorsey

   November 15, 2013      451         64         102         —     

Forbes

   December 11, 2013      531         52         209         —     

Broadway

   December 19, 2013      293         21         28         —     

Pennsy

   December 23, 2013      514         151         150         —     

JFK Airgate

   December 27, 2013      3,238         731         991         —     
     

 

 

    

 

 

    

 

 

    

 

 

 

Total 2013 Acquisitions

      $ 10,583       $ 2,706       $ 3,797       $ —     
     

 

 

    

 

 

    

 

 

    

 

 

 

Rental revenues set forth above include adjustments for straight-line rents and amortization of lease intangibles.

 

(3) Reflects the adjustment to acquisitions costs as if the 2013 Acquisitions had occurred on January 1, 2012.

 

(4) Reflects the adjustment to interest expense as if the $50.0 million term loan at an interest rate of LIBOR plus the applicable LIBOR margin of 1.65% and draws of approximately $31.0 million on the Company’s revolving credit facility at an interest rate of LIBOR plus the applicable LIBOR margin of 1.65% had occurred on January 1, 2012 to fund the respective acquisitions.

 

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(5) Reflects the adjustment to the basic and diluted weighted average common shares outstanding as if the February 19, 2013 follow-on offering of 5,750,000 shares of common stock at a price per share of $16.60 and the July 11, 2013 follow-on offering of 5,750,000 shares of common stock at a price of $18.25 had occurred on January 1, 2013.

 

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Terreno Realty Corporation

Pro Forma Condensed Consolidated Statement of Operations

and Comprehensive Income

For the Year Ended December 31, 2012

(in thousands – except share and per share data)

(Unaudited)

 

     Terreno Realty
Corporation (1)
    2012
Acquisitions
           2013
Acquisitions
            Pro Forma
Adjustments
           Pro Forma
Terreno Realty
Corporation
 

REVENUES

                    

Rental revenues

   $ 31,173      $ 6,858        (2)       $ 17,236         (2)       $ —           $ 55,267   
  

 

 

   

 

 

      

 

 

       

 

 

      

 

 

 

Total revenues

     31,173        6,858           17,236            —             55,267   
  

 

 

   

 

 

      

 

 

       

 

 

      

 

 

 

COSTS AND EXPENSES

                    

Property operating expenses

     8,986        1,571        (2)         4,465         (2)         —             15,022   

Depreciation and amortization

     9,133        2,240        (2)         6,563         (2)         —             17,936   

General and administrative

     6,403        —             —              —             6,403   

Acquisition costs

     2,238        —             —              (2,238     (3)         —     
  

 

 

   

 

 

      

 

 

       

 

 

      

 

 

 

Total costs and expenses

     26,760        3,811           11,028            (2,238        39,361   
  

 

 

   

 

 

      

 

 

       

 

 

      

 

 

 

OTHER INCOME (EXPENSE)

                    

Interest and other income

     37        —             —              —             37   

Interest expense, including amortization

     (5,472     (633     (2)         —           (2)         (1,524     (4)         (7,629
  

 

 

   

 

 

      

 

 

       

 

 

      

 

 

 

Total other income and expenses

     (5,435     (633        —              (1,524        (7,592
  

 

 

   

 

 

      

 

 

       

 

 

      

 

 

 

(Loss) income from continuing operations

     (1,022     2,414           6,208            714           8,314   
  

 

 

   

 

 

      

 

 

       

 

 

      

 

 

 

Discontinued operations

                    

Income from discontinued operations

     1,050        —             —              —             1,050   

Gain on sales of real estate investments

     4,037        —             —              —             4,037   
  

 

 

   

 

 

      

 

 

       

 

 

      

 

 

 

Income from discontinued operations

     5,087        —             —              —             5,087   
  

 

 

   

 

 

      

 

 

       

 

 

      

 

 

 

Net income

     4,065        2,414           6,208            714           13,401   

Preferred stock dividends

     (1,604     —             —              (1,961     (5)         (3,565
  

 

 

   

 

 

      

 

 

       

 

 

      

 

 

 

Net and comprehensive income

     2,461        2,414           6,208            (1,247        9,836   

Allocation to participating securities

     (24     —             —              —             (24
  

 

 

   

 

 

      

 

 

       

 

 

      

 

 

 

Net and comprehensive income available to common stockholders

   $ 2,437      $ 2,414         $ 6,208          $ (1,247      $ 9,812   
  

 

 

   

 

 

      

 

 

       

 

 

      

 

 

 

EARNINGS PER COMMON SHARE—BASIC AND DILUTED:

                    

(Loss) income from continuing operations available to common stockholders

   $ (0.20                   $ 0.19   

Income from discontinued operations

     0.39                        0.21   
  

 

 

   

 

 

      

 

 

       

 

 

      

 

 

 

Net income available to common stockholders

   $ 0.19                      $ 0.40   
  

 

 

   

 

 

      

 

 

       

 

 

      

 

 

 

BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

     13,135,440                   11,697,568        (6)         24,833,008   
  

 

 

   

 

 

      

 

 

       

 

 

      

 

 

 

See accompanying notes to unaudited pro forma condensed consolidated statement of operations and comprehensive income.

 

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Terreno Realty Corporation

Notes to Pro Forma Condensed Consolidated Statement of Operations

and Comprehensive Income

For the Year Ended December 31, 2012

(Unaudited)

 

(1) Represents the audited historical consolidated operations of Terreno Realty Corporation (the “Company”) for the year ended December 31, 2012. See the historical consolidated financial statements and notes thereto included in the Company’s 2012 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on February 15, 2013.

 

(2) The following table sets forth the incremental rental revenues, operating expenses, depreciation and amortization and interest expense of the 2013 and 2012 Acquisitions for the year ended December 31, 2012 based on the historical and pro forma operations of such properties for the periods prior to acquisition by the Company as if the properties were acquired January 1, 2012 (dollars in thousands).

 

    

Acquisition Date

   Rental
Revenues
     Operating
Expenses
     Depreciation
and
Amortization
     Interest Expense  

Global Plaza

   March 16, 2012    $ —         $ —         $ —         $ —     

Garfield

   May 30, 2012      1,521         515         634         —     

Whittier

   June 12, 2012      —           —           —           —     

Caribbean

   July 3, 2012      1,812         356         302         —     

78th Avenue

   July 23, 2012      —           100         29         —     

Manhattan Beach

   July 31, 2012      651         116         229         —     

Carlton Court

   August 2, 2012      199         49         58         —     

Troy Hill

   August 17, 2012      343         85         173         118   

26th Street

   September 25, 2012      895         117         289         228   

Sweitzer

   October 15, 2012      548         86         274         —     

17600 West Valley Highway

   December 14, 2012      760         82         123         287   

631 Brennan

   December 19, 2012      —           —           —           —     

South Main

   December 20, 2012      129         65         129         —     
     

 

 

    

 

 

    

 

 

    

 

 

 

Total 2012 Acquisitions

      $ 6,858       $ 1,571       $ 2,240       $ 633   
     

 

 

    

 

 

    

 

 

    

 

 

 
    

Acquisition Date

   Rental
Revenues
     Operating
Expenses
     Depreciation
and
Amortization
     Interest Expense  

107th Avenue

   March 6, 2013    $ 621       $ 139       $ 186       $ —     

SeaTac 8th Ave

   March 21, 2013      796         170         289         —     

240 Littlefield Avenue

   April 3, 2013      —           —           —           —     

101st Road

   April 26, 2013      360         163         154         —     

Americas Gateway

   May 22, 2013      1,900         878         836         —     

Route 100

   June 12, 2013      1,208         392         856         —     

1 Dodge Drive

   June 20, 2013      705         240         498         —     

17 Madison

   July 23, 2013      302         90         175         —     

550 Delancy

   July 25, 2013      1,269         207         349         —     

Melanie Lane

   September 30, 2013      1,970         491         812         —     

Michele

   October 17, 2013      572         139         171         —     

Meadow

   October 17, 2013      216         62         80         —     

Ethel

   November 6, 2013      815         352         190         —     

Dorsey

   November 15, 2013      606         85         135         —     

Forbes

   December 11, 2013      713         69         278         —     

Broadway

   December 19, 2013      393         28         37         —     

Pennsy

   December 23, 2013      689         203         199         —     

JFK Airgate

   December 27, 2013      4,101         757         1,318         —     
     

 

 

    

 

 

    

 

 

    

 

 

 

Total 2013 Acquisitions

      $ 17,236       $ 4,465       $ 6,563       $ —     
     

 

 

    

 

 

    

 

 

    

 

 

 

 

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Global Plaza, Whittier and 631 Brennan were acquired from unrelated third-parties after a sale/leaseback transaction and did not have historical revenues and expenses as the properties were accepted, owned and operated by the tenants. As such, no property operations have been reflected in the accompanying unaudited pro forma condensed consolidated statement of operations and comprehensive income.

Rental revenues set forth above include adjustments for straight-line rents and amortization of lease intangibles.

 

  (3) Reflects the adjustment to acquisition costs as if the 2013 and 2012 Acquisitions had occurred on January 1, 2012.

 

  (4) Reflects the adjustment to interest expense as if the $50.0 million term loan at an interest rate of LIBOR plus the applicable LIBOR margin of 1.65% and draws of approximately $31.0 million on the Company’s revolving credit facility at an interest rate of LIBOR plus the applicable LIBOR margin of 1.65% had occurred on January 1, 2012.

 

  (5) Reflects the adjustment to preferred stock dividends as if the 7.75% Series A Preferred Stock offering of 1,840,000 shares at a price per share of $25.00 had occurred on January 1, 2012.

 

  (6) Reflects the adjustment to the basic and diluted weighted average common shares outstanding as if the January 13, 2012 follow-on offering of 4,000,000 shares of common stock at a price per share of $14.25, the February 13, 2012 sale of 61,853 shares of common stock at a price per share of $14.25 upon the exercise by the underwriters of their option to purchase additional shares, the follow-on offering of 5,750,000 shares of common stock at a price per share of $16.60 and the follow-on offering of 5,750,000 shares of common stock at a price per share of $18.25 had occurred on January 1, 2012.

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

   Terreno Realty Corporation
Date: February 18, 2014    By:   

  /s/ Jaime J. Cannon

      Jaime J. Cannon
      Chief Financial Officer

 

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Exhibit Index

 

Exhibit

Number

  

Title

23.1*    Consent of Independent Auditor

 

* Filed herewith

 

19