First Industrial Realty Trust, Inc. · NYSE:FR
First Industrial Realty Trust — Citi 2018 Global Property CEO Conference
35 slides from First Industrial Realty Trust's conference presentation, March 2018
Slide 1: Citi 2018 Global Property CEO Conference
CITI 2018 GLOBAL PROPERTY CEO CONFERENCE MARCH 2018
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: Strategy for Success
STRATEGY FOR SUCCESS Maximize the economics on every lease Focus on higher rent growth assets and markets Continue to reduce allocation to low barrier markets Emphasize development as long as yields and demand justify Maintain balance sheet discipline 3
Slide 4: Our Progress – The FR Timeline
OUR PROGRESS – THE FR TIMELINE Today – FR 2020 Responsible Net Growth - Drive NOI/Cash flow 2013-15 - Constant Portfolio Management Self-Funding Capital Recycling - Minimize cost of capital - Drive occupancy/ NOI/Cash flow - Grow the dividend - Portfolio refinement 2011 - Expanding investment - Redu
Slide 5: Portfolio and Platform
PORTFOLIO AND PLATFORM Square Footage Percentage by Property Type(1) of Income(1) 0.7% Seattle Bulk Minneapolis/St. Paul Warehouse Central/Eastern PA 6.6% Milwaukee 71% Detroit 1.3% 3.3% New Jersey 1.7% 10.0% 5.7% 6.9% Chicago Northern California 3.7% Cleveland 0.7% 4.6% 5.0% Indianapolis 2.0% Regio
Slide 6: 2017 Highlights
2017 HIGHLIGHTS • Occupancy of 97.3%, up 130 basis points from 4Q16 • Cash Same Store NOI grew 4.4% • Cash Rental Rates were up 8.6% • Increased 1Q18 dividend to $0.2175 per share, a 3.6% increase • Started development of First Nandina Logistics Center, a 1.4 MSF distribution center in the Inland Em
Slide 7: 1Q18 Update
1Q18 UPDATE • Completed a long-term lease renewal for the 1.3 MSF facility in Eastern Pennsylvania • Leased 100% of First Sycamore 215 Logistics Center, a 243,000 SF development in Southern California • Acquired a 35,000 SF, 100% leased building in Seattle for $5.6M • Acquired a development site in
Slide 8: Key Portfolio Cash Flow Metrics
KEY PORTFOLIO CASH FLOW METRICS Occupancy %(1) Cash Rental Rates %(2) Cash Same Store NOI %(3) 100 10 10 8.6 97.3 6.6 6.1 5.2 96.1 96.0 5 5 4.2 4.4 3.5 2.7 94.3 2.2 92.9 0 0 '13 '14 '15 '16 '17 '13 '14 '15 '16 '17 90 '13 '14 '15 16 '17 -3.4 -5 -5 Driven by leasing execution, supported by fundamental
Slide 9: Industrial Landscape
INDUSTRIAL LANDSCAPE TENANT SUPPLY INSTITUTIONAL DEMAND ENVIRONMENT ASSET CLASS • Increased globalization, • Constrained financing • Platforms scarce! consumption and urbanization • Increasingly difficult entitlement • Expanding investment from • Broad-based demand with process and NIMBY sophisticat
Slide 10: U.S. Net Absorption and New Completions
U.S. NET ABSORPTION AND NEW COMPLETIONS MINIMAL E-COMMERCE TAILWIND FORECAST 400 300 200 100 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 -100 -200 -300 COMPLETIONS NET ABSORPTION Source: CBRE Econometric Advisors as of February 23, 2018. 10
Slide 11: Portfolio Transformation Summary
PORTFOLIO TRANSFORMATION SUMMARY AS OF DECEMBER 31, 2017 1400 $61M Developable 1200 $291M / 4.2 MSF Land Inventory Developments In Process 1000 $594M / 9.3 MSF 800 Σ= Developments Placed In-Service 7.0% CAP RATE And Completed Not In-Service 600 400 $501M / 7.5 MSF ($M) 200 Acquisitions 0 $77M (200)
Slide 12: Investment Activity
INVESTMENT ACTIVITY
Slide 13: Development Completions 2015-2017
DEVELOPMENT COMPLETIONS 2015-2017 First San Michele Logistics Center First Park 94 – Building II 187,985 SF 602,348 SF First 33 Commerce Center Buildings I and II First Sycamore 215 584,760 SF Logistics Center 242,580 SF First Park 94 – Building I 601,439 SF First Florence Logistics Center 577,200 S
Slide 14: Development Completions
DEVELOPMENT COMPLETIONS 2015-2017 Estimated GAAP Estimated Estimated Property Market SF Investment $/SF % Leased Cash Margin(2) ($M) Yield(1) 2017 COMPLETED DEVELOPMENTS First Park @ PV303 – Phoenix 618,350 45.4 $55(3) 100% 7.2% 44% Building I First Sycamore 215 Inland Empire 242,580 17.9 $74 100% 6
Slide 15: Development Completions (Cont.)
DEVELOPMENT COMPLETIONS (CONT.) 2015-2017 Estimated GAAP Estimated Estimated Property Market SF Investment $/SF % Leased Cash Margin(2) ($M) Yield(1) 2016 COMPLETED DEVELOPMENTS (CONTINUED) First Arlington Commerce Dallas 234,100 12.4 $53 100% 7.0% 40% Center II TOTAL 2016 DEVELOPMENTS 2,073,733 $12
Slide 16: Projected Development Completions 2018
PROJECTED DEVELOPMENT COMPLETIONS 2018 First Joliet Logistics Center First Logistics Center @ 355,199 SF I-78/81 – Building I 738,720 SF First Nandina Logistics Center 1,387,899 SF First 290 @ Guhn Rd 126,000 SF The Ranch by First Industrial 936,000 SF First Park @ PV303 - Building II 640,000 SF 16
Slide 17: Projected Development Completions
PROJECTED DEVELOPMENT COMPLETIONS 2018 Estimated Estimated GAAP % Potential Estimated Property Market SF $/SF Cash Investment Leased Margin(2) Completion Yield(1) ($M) 2018 COMPLETIONS - PROJECTED The Ranch by First SoCal 936,000 86.7 93 0% 6.9% 71% 2Q18 Industrial First Park @ PV303 – Phoenix 640,0
Slide 18: The Ranch by First Industrial
THE RANCH BY FIRST INDUSTRIAL INLAND EMPIRE SUMMARY Est. GAAP Est. % Potential Estimated SF $/SF Investment Cash Yield Leased Margin(1) Completion 936,000 $86.7M $93 6.9% 0% 71% 2Q18 (1) Potential margin based on spread of estimated cash yield to estimated market cap rate for comparable leased asset
Slide 19: First Park @ PV303 – Building II
FIRST PARK @ PV 303 – BUILDING II PHOENIX SUMMARY Est. GAAP Est. % Potential Estimated SF $/SF Investment Cash Yield Leased Margin(1) Completion 640,000 $35.8M $56 7.9% 0% 59% 2Q18 (1) Potential margin based on spread of estimated cash yield to estimated market cap rate for comparable leased assets
Slide 20: First Joliet Logistics Center
FIRST JOLIET LOGISTICS CENTER CHICAGO SUMMARY Est. GAAP Est. % Potential Estimated SF $/SF Investment Cash Yield Leased Margin(1) Completion 355,199 $21.2M $60 7.1% 0% 42% 2Q18 (1) Potential margin based on spread of estimated cash yield to estimated market cap rate for comparable leased assets at t
Slide 21: First 290 @ Guhn Road
FIRST 290 @ GUHN ROAD HOUSTON SUMMARY Est. GAAP Est. % Potential Estimated SF $/SF Investment Cash Yield Leased Margin(1) Completion 126,000 $9.1M $72 7.0% 0% 41% 3Q18 (1) Potential margin based on spread of estimated cash yield to estimated market cap rate for comparable leased assets at time of co
Slide 22: First Logistics Center @ I-78/81 – Bldg. I
FIRST LOGISTICS CENTER @ I-78/81 – BLDG. I CENTRAL PENNSYLVANIA SUMMARY Est. GAAP Est. % Potential Estimated SF $/SF Investment Cash Yield Leased Margin(1) Completion 738,720 $48.9M $66 6.8% 0% 36% 4Q18 (1) Potential margin based on spread of estimated cash yield to estimated market cap rate for com
Slide 23: First Nandina Logistics Center
FIRST NANDINA LOGISTICS CENTER INLAND EMPIRE SUMMARY Est. GAAP Est. % Potential Estimated SF $/SF Investment Cash Yield Leased Margin(1) Completion 1,387,899 $89.3M $64 7.5% 0% 66% 4Q18 (1) Potential margin based on spread of estimated cash yield to estimated market cap rate for comparable leased as
Slide 24: First Nandina Logistics Center
FIRST NANDINA LOGISTICS CENTER INLAND EMPIRE 16875 HEACOCK ST FIRST INLAND LOGISTICS CENTER FIRST 36 LOGISTICS CENTER FIRST SAN MICHELE LOGISTICS CENTER FIRST NANDINA LOGISTICS CENTER 17825 INDIAN ST 24
Slide 25: Property Acquisitions
PROPERTY ACQUISITIONS 2016-2018 81 Paragon Dr 121,142 SF 301 Bordentown 6635 E 30th St Hedding Rd 10680 88th Ave 99,877 SF 213,000 SF 6407 S 210th St 99,838 SF 35,132 SF 8751 Skinner Ct 125,775 SF 21301 E 33rd Dr 181,348 SF 4473 Shader Rd 10586 Tamarind Ave 199,100 106,455 SF 1351 NW 78th Ave 63,389
Slide 26: Property Acquisitions
PROPERTY ACQUISITIONS 2016-2018 Purchase Estimated Property Market SF Price $/SF % Leased Cash ($M) Yield(1) 2018 ACQUISITIONS 6407 S. 210th Street Seattle 35,132 5.6 $160 100% 5.7% TOTAL 2018 PROPERTY ACQUISITIONS 35,132 $5.6 $160 100% 5.7% 2017 ACQUISITIONS 21301 E 33rd Drive Denver 181,348 11.2 $
Slide 27: Property Acquisitions (Cont.)
PROPERTY ACQUISITIONS (CONT.) 2016-2018 Purchase Estimated Property Market SF Price $/SF % Leased Cash ($M) Yield(1) 2017 ACQUISITIONS (CONTINUED) 10680 88th Ave Chicago 99,838 7.0 $70 100% 6.3% TOTAL 2017 PROPERTY ACQUISITIONS 1,085,023 $112.0 $103 100% 5.8% 2016 ACQUISITIONS 8751 Skinner Court Orl
Slide 28: 6407 S 210th Street
6407 S 210th STREET SEATTLE SUMMARY Cash % SF Purchase Price $/SF Yield Leased 35,132 $5.6M $160 5.7% 100% 28
Slide 29: 10680 88th Avenue
10680 88th AVENUE CHICAGO SUMMARY Cash % SF Purchase Price $/SF Yield Leased 99,838 $7.0M $70 6.3% 100% 29
Slide 30: Balance Sheet
BALANCE SHEET
Slide 31: Line of Credit/Term Loans Covenants
LINE OF CREDIT/TERM LOANS COVENANTS Total Leverage(1) (Debt + Preferred) to EBITDA (annualized) 10.0 55 8.8x 50.5% 50 8.0 6.6x 6.1x 45 6.0 4.9x 40.4% 40 37.5% 4.0 35 30 27.6% 2.0 25 0.0 2011 2013 2015 2017 2011 2013 2015 2017 Secured Leverage Fixed Charge Coverage 30.0% 4.0 1Q18 expected to be Witho
Slide 32: Strong Balance Sheet
STRONG BALANCE SHEET As of December 31, 2017 Fixed vs. Floating Fixed 89% Floating 11% Amount Interest Weighted Debt Type ($M) % Rate(1) Maturity (Yrs.) (2) Secured 452 35 5.4% 2.2 Unsecured 853 65 3.6% 6.0 Total 1,305 4.2% 4.7 W/A interest rate without LOC 4.4% (1) Weighted average coupon interest
Slide 33: Strong Balance Sheet – Maturities
STRONG BALANCE SHEET AS OF DECEMBER 31, 2017 Maturities Secured Debt Unsecured Debt Line of Credit 500 400 145 (1) 300 $M Private Placement to fund (closed February 15th) 200 260 (2) 200 (2) 249 100 165 79 59 67 81 0 2018 2019 2020 2021 2022 Thereafter Average Interest 4.55% 7.66% 6.92% 3.82% 3.00%
Slide 34: Why First Industrial?
WHY FIRST INDUSTRIAL? Cash flow growth opportunity Ability to create value through development and select acquisitions via platform Valuation gap to peers and market transactions 34
Slide 35: Q&A
Q&A
First Industrial Realty Trust — Citi 2018 Global Property CEO Conference on 6ix