First Industrial Realty Trust, Inc. · NYSE:FR
First Industrial Realty Trust — Investor Presentation (August 2020)
36 slides from First Industrial Realty Trust's investor presentation, August 2020
Slide 1: Investor Presentation
Investor Presentation August 2020
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. We intend for such forward-looking statements to be covered by the safe harbor provisions for forward-looking sta
Slide 3: Company Overview
Company Overview FIRST INDUSTRIAL REALTY-+TRUST
Slide 4: Recent Highlights
Recent Highlights(1) • 2Q20 Metrics: Occupancy 97.7%; Cash Same Store NOI Grew 6.3%; Cash Rental Rates Up 11.0% • Collected 98% of Second Quarter Monthly Rental Billings and 97% of July Billings Through July 22nd (2) • 2020 FFO Guidance Increased $0.02 at Midpoint to $1.80 Per Share/Unit Primarily R
Slide 5: Monthly Tenant Billings & Receivables Update
Monthly Tenant Billings & Receivables Update Through July 22, 2020 (1) April May June July % Collections as of July 22, 2020 98.4% 98.4% 97.7% 96.8% (2) Rent Deferrals 0.2% 0.3% 0.8% 0.3% Pending Collection 1.1% 0.9% 1.0% 2.9% Bad Debt Expense Reserve 0.3% 0.4% 0.5% TBD Total as of July 22, 2020 100
Slide 6: COVID-19 Approach
COVID-19 Approach • Proactive tenant outreach • Discussions with tenants requesting rent deferment – Obtained detailed financial information to evaluate and prioritize requests – Grants to-date have been in the form of deferrals of one to three months to be paid back in 2020 • Halted new development
Slide 7: Strategy
Strategy Generating long-term cash Distribution and other flow growth from increasing US-only, top rents, rental rate bumps, critical supply chain logistics markets development, lower cap ex, properties sustaining occupancy Development platform Strong balance sheet and Increasing capital allocation
Slide 8: National Platform
National Platform As of June 30, 2020 Total Number of Total Occupancy Market Cap Properties Portfolio Size $6.6 444 64.0 97.7% BILLION INDUSTRIAL MILLION IN-SERVICE BUILDINGS SQUARE FEET OCCUPANCY 77% 11% 10% 2% BULK REGIONAL LIGHT R&D WAREHOUSE WAREHOUSE INDUSTRIAL FLEX Number of properties and tot
Slide 9: Portfolio Composition
Portfolio Composition % of Rental Income as of June 30, 2020 1.2% Seattle Minneapolis/St. Paul Milwaukee Detroit Central/Eastern PA 5.6% 1.1% 2.9% 2.3% 9.7% 5.5% New Jersey Chicago 7.2% Cleveland Northern California 5.1% Baltimore/D.C. 0.9% 1.7% 5.5% Cincinnati Denver 19.4% 1.4% Nashville 5.8% 6.2%
Slide 10: Portfolio Transformation Summary
Portfolio Transformation Summary As of June 30, 2020 $153M $2,500 Developable Land $2,200 $95M Developments In Process Total Investments $1,900 $1,600 $1,278M Completed Developments $2.4B $1,300 IN 29.3 MSF $1,000 6.7% Cap Rate $700 $400 $844M Acquisitions $100 (M) -$200 $1.6B -$500 OUT 34.1 MSF $1,
Slide 11: Portfolio Proximity To Population Centers
Portfolio Proximity To Population Centers 30 mi 20 mi 10 mi Average Average Population (M) 3.9 2.2 0.7 Population 24% 75% 95% % of FR Portfolio by SF > 1M $66,216 Exceeds U.S. Median Household Income of $66,388 $60,548 $67,835 Median Household Income Proximity to higher income population centers fit
Slide 12: Key Portfolio Cash Flow Metrics
Key Portfolio Cash Flow Metrics OCCUPANCY CASH RENTAL RATES CASH SAME STORE NOI (period end) (period average) (full year) 100% 15% 13.9% 10% 98.5% 97.7% 98% 97.3% 97.6% 8% 7.3% 10.9% 96.1% 10% 96.0% 6.1% 8.6% 5.8% 96% 8.1% 6% 5.2% 6.6% 4.4% 94% 4% 5% 3.1% 3.5% 92% 2% 90% 0% 0% '15 '16 '17 '18 '19 2Q
Slide 13: Financial Performance
Financial Performance FFO PER SHARE AFFO (M) DIVIDEND PER SHARE $2.00 $205 $197 CAGR 14.4% $1.00 CAGR 11.8% $1.00 2015-2020F CAGR 6.1% 2015-2020F $184 $0.92 2015-2020F $1.80 $180 $0.87 $1.74 $168 $0.84 $1.75 $156 $155 $0.76 $1.60 $0.75 $1.56 $133 $1.50 $1.45 $130 $113 $1.34 $0.51 $105 $0.50 $1.25 $8
Slide 14: Strong Balance Sheet
Strong Balance Sheet TOTAL LEVERAGE (1) (DEBT + PREFERRED) TO EBITDA 6.5 (annualized) 45 6.1x 40 37.5% 6.0 5.5x 35 33.0% 5.5 5.2x 29.4% 4.9x 30 27.6% 27.8% 5.0 25.9% 4.7x 4.6x 25 4.5 2015 2016 2017 2018 2019 2Q20 2015 2016 2017 2018 2019 2Q20 SECURED LEVERAGE FIXED CHARGE COVERAGE 20.0% 5.0 16.7% 14
Slide 15: Manageable Maturity Schedule
Manageable Maturity Schedule As of June 30, 2020 Pro Forma including 3Q20 $300M private placement and new term loan (1) Secured Debt Unsecured Debt Line of Credit 700 600 500 Weighted Average Maturity = 6.8 years Weighted Average Interest Rate = 3.55% 400 $M 20 300 200 260 250 100 200 182 225 211 13
Slide 16: Industrial Landscape
Industrial Landscape ms FIRST INDUSTRIAL REALTY-+TRUST
Slide 17: Industrial Real Estate Demand Drivers
Industrial Real Estate Demand Drivers E-commerce Supply Chain Consumption Optimization Global GDP Growth Trade COVID-19 crisis driving increased e-commerce adoption | 17
Slide 18: Supply/Demand Picture
Supply/Demand Picture NEW SUPPLY ENTITLEMENTS CONSTRUCTION QUALITY LAND TAKE LONGER TIME AND COSTS INCREASING TOUGH TO FIND ON HOLD MOSTLY IN LARGER FORMAT, CERTAIN SUBMARKETS Development largely limited to projects under way and build-to-suits. | 18
Slide 19: Investment Activity
Investment Activity ig FIRST Fi
Slide 20: Creating Value Through Development
Creating Value Through Development Total SF Total GAAP Investment Cash Yield Margin % Range Placed In-Service ($M) 2016-17 3,881,743 255.9 7.4% ±45% 2018 3,454,560 227.1 7.9% 82% – 92% 2019 4,428,701 324.3 6.7% 42% - 52% 2Q20 643,798 53.4 7.8% 47% - 57% Totals 12,408,802 $860.7 7.3% ±57% Created ≈$4
Slide 21: 2019 Developments Placed In Service
2019 Developments Placed In Service As of June 30, 2020 Estimated GAAP Placed % Estimated Property Market SF Investment $/SF In Service Leased Cash Yield ($M) Date The Ranch by First Inland 358,065 32.4 90 100% 8.3% 2Q19 Industrial – Bdgs. III & V Empire First Park Fairburn - BTS Atlanta 703,339 39.
Slide 22: 2020 Developments Placed In Service
2020 Developments Placed In Service As of June 30, 2020 Estimated GAAP Placed % Estimated Property Market SF Investment $/SF In Service Leased Cash Yield ($M) Date Ferrero BTS @ PV 303 Phoenix 643,798 53.4 83 100% 7.8% 1Q20 Total 643,798 $53.4 $83 100% 7.8% Average potential margin expected is appro
Slide 23: Developments Completed Not In Service
Developments Completed Not In Service As of June 30, 2020 Estimated GAAP % Estimated Completion Property Market SF Investment $/SF Leased Cash Yield Date ($M) First Grand Parkway Houston 173,045 13.3 77 0% 7.7% 4Q19 Commerce Center - Bldg. I First Grand Parkway Houston 198,905 15.2 77 29% 7.7% 4Q19
Slide 24: Developments Under Construction
Developments Under Construction As of June 30, 2020 Estimated GAAP % Estimated Estimated Property Market SF Investment $/SF Leased Cash Yield Completion ($M) First Sawgrass Miami 103,791 15.3 147 0% 5.8% 3Q20 Commerce Center First Redwood Inland 71,905 12.6 175 0% 5.2% 3Q20 Logistics Center II Empir
Slide 25: First Sawgrass Commerce Center
First Sawgrass Commerce Center South Florida Square Estimated GAAP Estimated % Estimated Feet Investment Cash Yield Leased Completion 103,791 $15.3M / $147/SF 5.8% 0% 3Q20 | 25
Slide 26: First Redwood Logistics Center II
First Redwood Logistics Center II Inland Empire Square Estimated GAAP Estimated % Estimated Feet Investment Cash Yield Leased Completion 71,905 $12.6M / $175/SF 5.2% 0% 3Q20 | 26
Slide 27: First Park 121 – Building E
First Park 121 – Building E Dallas Square Estimated GAAP Estimated % Estimated Feet Investment Cash Yield Leased Completion 434,720 $31.2M / $72/SF 6.7% 77% 4Q20 | 27
Slide 28: First Cypress Creek Commerce Center
First Cypress Creek Commerce Center South Florida 86,920 SF 147,690 SF 139,320 SF Fort Lauderdale Executive Airport Square Estimated GAAP Estimated % Estimated Feet Investment Cash Yield Leased Completion 373,930 $35.6M / $95/SF 7.1% 0% 1Q21 (3 buildings) | 28
Slide 29: First Nandina II Logistics Center - BTS
First Nandina II Logistics Center - BTS Inland Empire – 3Q20 Update Fort Lauderdale Executive Airport Square Estimated GAAP Estimated % Estimated Feet Investment Cash Yield Leased Completion 221,321 $22.4M / $101/SF 6.2% 100% 3Q21 | 29
Slide 30: 2019 Acquisitions
2019 Acquisitions Acquisition Acquisition % Estimated Property Market SF Price Price/SF Leased Cash Yield ($M) ($) First Orchard 88 Chicago 172,654 12.3 71 60% 6.5% Business Center Mahalo & Maria Los Angeles 31,900 7.1 223 100% 4.2% 21110 E 31st Circle Denver 84,700 9.0 106 100% 5.2% 930 Columbia Av
Slide 31: 2020 Acquisitions
2020 Acquisitions As of June 30, 2020 Acquisition Acquisition % Estimated Property Market SF Price Price/SF Leased Cash Yield ($M) ($) 27403 Industrial Boulevard NorCal 22,500 4.9 219 100% 5.0% Nottingham Ridge Logistics Baltimore 751,074 69.7 93 93% 5.9% Center – A & B 19302-19400 S Laurel Park Dr
Slide 32: Nottingham Logistics Center – Bldgs. A & B
Nottingham Logistics Center – Bldgs. A & B Baltimore Square Estimated GAAP Estimated % Status Feet Investment Cash Yield Leased 751,074 $84.3M / $112/SF 5.9% 93% Acquired 1Q20 (2 buildings) Percent leased is as of the Company’s results press release dated July 22, 2020. | 32
Slide 33: Strategically Located Land Positions
Strategically Located Land Positions As of June 30, 2020 No. of Developable Market Acres Land Sites SF Chicago 1 167.7 3,200,000 South Florida 4 100.5 1,811,000 Inland Empire 7 84.5 1,640,000 Denver 1 84.8 1,333,000 Central PA Nashville 1 72.1 1,200,000 Chicago NorCal NorCal 1 58.0 1,200,000 Denver
Slide 34: First Park Miami
First Park Miami South Florida First Park Miami Total Developable Acres 63.2 Acquisition Price $48.9M Phase I (on hold) Building I 258,925 SF Building II 132,751 SF Building III 200,264 SF Total Size 591,940 SF Total Estimated Cost $90M Targeted Cash Yield = Mid-Fives | 34
Slide 35: Conclusion
Conclusion
Slide 36: Platform for Today & Tomorrow
Platform for Today & Tomorrow Near-Term • Long-Term Navigate the COVID-crisis Lever the strengths of our resilient, Work with tenants to help them with business continuity tested platform to drive growth in cash flow and value • Maximize cash flows, retain tenants • Serve logistics needs driven by a
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