First Industrial Realty Trust, Inc. · NYSE:FR
First Industrial Realty Trust — NAREIT REITWeek 2018: Investor Forum
32 slides from First Industrial Realty Trust's conference presentation, June 2018
Slide 1: REITWeek 2018: NAREIT's Investor Forum
REITWeek 2018: NAREIT’s Investor Forum JUNE 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: Portfolio and Platform
PORTFOLIO AND PLATFORM AS OF MARCH 31, 2018 Square Footage Percentage by Property Type of Rental Income(1) 0.8% Seattle Bulk Minneapolis/St. Paul Warehouse Central/Eastern PA 6.3% Milwaukee 71% Detroit 1.3% 3.4% New Jersey 1.8% 9.7% 5.6% 7.0% Chicago Northern California 3.2% Cleveland 0.7% 4.6% 5.1%
Slide 5: 2018 Highlights to Date
2018 HIGHLIGHTS TO DATE • Occupancy of 97.1% at 1Q18, up 130 basis points from 1Q17 • Cash Same Store NOI grew 6.1% in 1Q18 • Cash Rental Rates were up 9.3% in 1Q18 • Leased 100% of the 156,000 SF building at The Ranch by First Industrial business park in the Inland Empire West • Closed on $300M pri
Slide 6: Key Portfolio Cash Flow Metrics
KEY PORTFOLIO CASH FLOW METRICS 7.0% cash rental rate change on 2018 rollovers signed as of April 25th.(4) Occupancy %(1) Cash Rental Rates %(2) Cash Same Store NOI %(3) 100 10 9.3 10 8.6 97.3 97.1 6.6 6.1 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 1Q18 '13 '14 '15 '
Slide 7: 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 May 17, 2018. 7
Slide 8: Investment Activity
INVESTMENT ACTIVITY
Slide 9: Current Development Projects
CURRENT DEVELOPMENT PROJECTS First Joliet Logistics Center First Logistics Center @ 355,199 SF I-78/81 – Building A 738,720 SF First Nandina Logistics Center 1,387,899 SF First Logistics Center @ I-78/81 – Building B 250,200 SF The Ranch by First Industrial 936,000 SF First 290 @ Guhn Rd First Park
Slide 10: Current Development Projects
CURRENT DEVELOPMENT PROJECTS Estimated Estimated GAAP % Potential Estimated Property Market SF $/SF Cash Investment Leased Margin(2) Completion Yield(1) ($M) The Ranch by First SoCal 936,000 86.7 93 17% 6.9% 71% 2Q18 Industrial First Park @ PV303 – Phoenix 640,000 35.8 56 0% 7.9% 59% 2Q18 Building B
Slide 11: 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% 17% 71% 2Q18 (1) Potential margin based on spread of estimated cash yield to estimated market cap rate for comparable leased asse
Slide 12: First Park @ PV303 – Building B
FIRST PARK @ PV 303 – BUILDING B 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 a
Slide 13: 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 14: 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 15: First Logistics Center @ I-78/81 – Bldg. A
FIRST LOGISTICS CENTER @ I-78/81 – BLDG. A 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 16: First Logistics Center @ I-78/81 – Bldg. B
FIRST LOGISTICS CENTER @ I-78/81 – BLDG. B CENTRAL PENNSYLVANIA SUMMARY Est. GAAP Est. % Potential Estimated SF $/SF Investment Cash Yield Leased Margin(1) Completion 252,200 $17.8 $70 6.9% 0% 38% 1Q19 (1) Potential margin based on spread of estimated cash yield to estimated market cap rate for comp
Slide 17: 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 18: 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 18
Slide 19: Property Acquisitions
PROPERTY ACQUISITIONS 2018 6407 S 210th St 35,132 SF 4401 Shader Rd 93,608 SF First Park @ Ocean Ranch II 225,489 SF 19
Slide 20: Property Acquisitions
PROPERTY ACQUISITIONS 2018 Purchase Estimated Property Market SF Price $/SF % Leased Cash ($M) Yield(1) 6407 S. 210th St Seattle 35,132 $5.6 $160 100% 5.7% First Park @ San Diego 225,489 $36.7 $163 70% 5.4% Ocean Ranch II 4401 Shader Rd Orlando 93,608 $8.7 $93 100% 5.7% TOTAL 354,229 $51.0 $144 81.1
Slide 21: 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% 21
Slide 22: First Park @ Ocean Ranch II
FIRST PARK @ OCEAN RANCH II SAN DIEGO SUMMARY Cash % SF Purchase Price $/SF Yield Leased 225,489 (3 bldgs.) $36.7M $163 5.4% 70% 22
Slide 23: 4401 Shader Road
4401 SHADER ROAD ORLANDO SUMMARY Cash % SF Purchase Price $/SF Yield Leased 93,608 $8.7M $93 5.7% 100% 23
Slide 24: First Park @ PV303 – Joint Venture
FIRST PARK @ PV303 – JOINT VENTURE • Acquisition of 532 net acres at PV303 Business Park in Phoenix • $49M (≈ $2 per land foot), FR share: 49% • Partner: Diamond Realty, the US real estate arm of Mitsubishi Corporation • Speculative and build-to-suit development plus one-off land sales to users • Ta
Slide 25: First Park @ PV303 – Joint Venture
FIRST PARK @ PV303 – JOINT VENTURE 25
Slide 26: Strategically Located Land Positions
STRATEGICALLY LOCATED LAND POSITIONS AS OF MARCH 31, 2018 Developable Site Market Acres SF First Park 94 Chicago 154.0 3,200,000 First Park Fairburn Atlanta 68.7 1,260,000 First Mountain Creek Dallas 104.5 1,200,000 Distribution Center Rockdale Nashville 101.7 1,200,000 Stockton Stockton 57.9 1,200,
Slide 27: Balance Sheet
BALANCE SHEET
Slide 28: Line of Credit/Term Loans Covenants
LINE OF CREDIT/TERM LOANS COVENANTS TOTAL LEVERAGE(1) (DEBT + PREFERRED) TO EBITDA (annualized) 10.0 55 50.5% 8.8x 50 9.0 45 8.0 40.4% 37.5% 7.0 6.6x 40 6.1x 35 6.0 5.3x 29.0% 4.9x 30 27.6% 5.0 25 4.0 2011 2013 2015 2017 1Q18 2011 2013 2015 2017 1Q18 SECURED LEVERAGE FIXED CHARGE COVERAGE 25.0% 4.0
Slide 29: Strong Balance Sheet
STRONG BALANCE SHEET AS OF MARCH 31, 2018 Fixed vs. Floating Fixed Floating 93% 7% Amount Interest Weighted Debt Type ($M) % Rate Maturity (Yrs.) (1) Secured 303 21 5.8% 3.2 Unsecured 1,109 79 3.7% 7.2 Total 1,412 4.2% 6.4 W/A interest rate without LOC 4.3% (1) LOC maturity assumes exercise of one-y
Slide 30: Strong Balance Sheet – Maturities
STRONG BALANCE SHEET AS OF MARCH 31, 2018 Maturities Secured Debt Unsecured Debt Line of Credit 600 500 400 100 (1) $M 300 559 200 260 200 100 5 80 67 82 59 0 2018 2019 2020 2021 2022 Thereafter Average Interest 5.78% 7.65% 6.90% 3.75% 3.09% 4.39% Rate % 30 (1) LOC maturity assumes exercise of one-y
Slide 31: 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 31
Slide 32: Q&A
Q&A
First Industrial Realty Trust — NAREIT REITWeek 2018: Investor Forum on 6ix