First Industrial Realty Trust, Inc. · NYSE:FR
First Industrial Realty Trust — NAREIT REITWeek 2017
31 slides from First Industrial Realty Trust's conference presentation, June 2017
Slide 1: NAREIT REITWeek 2017 Investor Presentation
NAREIT REITWeek 2017 Investor Presentation June 2017
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: Long-Term Vision
LONG-TERM VISION USING PLATFORM TO DRIVE SHAREHOLDER VALUE Talented people/platform to create/add value Strong balance sheet Active portfolio management Operational excellence and best-in-class customer service Continual focus on driving cash flow Growth through development and select acquisitions 3
Slide 4: Our Progress – The FR Timeline
OUR PROGRESS – THE FR TIMELINE Today - Drive NOI/Cash flow 2013 - Portfolio enhancement - Drive occupancy - Development focused and NOI/Cash flow investment - Portfolio refinement - Reduce debt costs 2011 - Expanding - Grow the dividend - Drive occupancy and investment NOI/Cash flow - Reduce debt co
Slide 5: Portfolio and Platform
PORTFOLIO AND PLATFORM SF BY PROPERTY TYPE(1) BROAD MARKET PRESENCE Light Seattle R&D/ Industrial Flex 15% 3% Minneapolis Regional Warehouse Milwaukee 13% Detroit Pennsylvania Bulk Warehouse New Jersey 69% Chicago Salt Lake City Cleveland Indianapolis Baltimore/ Cincinnati Washington Denver St. Loui
Slide 6: 2017 Highlights
2017 HIGHLIGHTS (1) 1Q17 • Occupancy of 95.8%, up 100 basis points from 1Q16 • Cash Same Store NOI grew 5.9% • Cash rental rates were up 6.0% • Acquired a 19-acre development site in Southern California for $15M • Sold 12 buildings totaling 258,000 SF for $20.5M • Increased 1Q17 dividend 10.5% to $0
Slide 7: Key Portfolio Cash Flow Metrics
KEY PORTFOLIO CASH FLOW METRICS Occupancy %(1) Cash Rental Rates %(2) Cash Same Store NOI %(3) 100 10 10 96.1 96.0 95.8 6.6 6.0 94.3 92.9 5 3.5 6.3 6.1 5.9 2.2 5.2 89.9 5 4.2 87.9 0 '11 '12 '13 '14 '15 '16 1Q17 2.7 -3.4 -5 0.1 -4.7 0 '11 '12 '13 '14 '15 '16 1Q17 -10 75 -11.8 -15 -5 (1) Period End. (
Slide 8: Why Industrial Real Estate?
WHY INDUSTRIAL REAL ESTATE? • Expanding investment • Increased globalization, • Constrained financing due from new, sophisticated consumption and to Basel III investors urbanization • Non-institutional • Strong capital flows due • Broad-based demand with developers have not re- to under-allocation e
Slide 9: U.S. Net Absorption and New Completions
U.S. NET ABSORPTION AND NEW COMPLETIONS 400 300 Forecast 200 100 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 -100 -200 Completions Net Absorption -300 Source: CBRE Econometric Advisors as of 5/2/17. 9
Slide 10: Strategy for Success
STRATEGY FOR SUCCESS Leasing and Operations Capital Portfolio Management Management Management • ≈ 96% Average Occupancy • Strong Balance Sheet • Grow Rents/Bumps • Development Focus • Investment Grade • Reduce TI/LC/CapEx • Selective Acquisitions • Capital Availability and • Best-In-Class Customer
Slide 11: Significant Portfolio Transformation
SIGNIFICANT PORTFOLIO TRANSFORMATION 2,000 $136M Developments In Process(1) $530M Developments Placed In-Service and Completed Not In Service 1,500 $589M Acquisitions ($M) 1,000 500 $839M Dispositions 0 2010 - 1Q17 (1) As of March 31, 2017. 11
Slide 12: 2016 Developments Placed in Service
2016 DEVELOPMENTS PLACED IN SERVICE Estimated Stabilized Estimated GAAP Cash % Name Market SF $/SF (1) GAAP Completion Investment Flow Leased Yield(2) ($M) (1) ($M) First Arlington Commerce Dallas 153,200 $9.5 $62 6.8% $0.6 100% 3Q15 Center @ I-20 First 33 Commerce Center Pennsylvania 584,760 $41.8
Slide 13: 2016 Developments Placed in Service
2016 DEVELOPMENTS PLACED IN SERVICE First Arlington Commerce Center @ I-20 Dallas – 153,200 SF First 33 Commerce Center First Park @ Ocean Ranch – Building 3 First Park Tolleson Pennsylvania – 584,760 SF San Diego – 65,600 SF Phoenix – 386,100 SF First Park 94 – Building I First Arlington Commerce C
Slide 14: 2016 Developments Placed in Service (Con't)
2016 DEVELOPMENTS PLACED IN SERVICE (CON’T) First Florence Logistics Center New Jersey – 577,200 SF First Park McDonough First Reyes Logistics Center Atlanta – 409,559 SF Los Angeles – 63,450 SF 14
Slide 15: 2017 Developments in Process and Key Land Sites
2017 Developments in Process and Key Land Sites
Slide 16: Developments Completed or In Process
DEVELOPMENTS COMPLETED OR IN PROCESS Estimated Stabilized Estimated GAAP % Estimated Name Market SF $/SF GAAP Cash Flow Investment ($M) Leased Completion Yield(1) ($M) First Park @ PV 303 (2) Phoenix 618,350 $45.4 $53 7.2% $3.3 100% 1Q17 First Sycamore 215 Logistics Inland Empire 242,580 $17.8 $73 6
Slide 17: First Park @ PV 303
FIRST PARK @ PV 303 GOODYEAR, AZ Summary Square Feet: 618,350 Percent Leased: 100% Estimated GAAP Investment(1): $45.4M / $53/SF Estimated GAAP Yield: 7.2% Completed: 1Q17 (1) Estimated GAAP investment, estimated GAAP yield, and stabilized cash flow reflect totals for the building plus related land,
Slide 18: First Sycamore 215 Logistics Center
FIRST SYCAMORE 215 LOGISTICS CENTER INLAND EMPIRE EAST, CA Summary Square Feet: 242,580 Percent Leased: 0% Estimated GAAP Investment: $17.8M/ $73/SF Estimated GAAP Yield: 6.0% Target Completion Date: 2Q17 18
Slide 19: First Park 94 – Building II
FIRST PARK 94 – BUILDING II SE WISCONSIN / CHICAGO Summary Square Feet: 602,348 Percent Leased: 50% Estimated GAAP Investment: $31.2 / $52/SF Estimated GAAP Yield: 7.7% Target Completion Date: 2Q17 19
Slide 20: The Ranch by First Industrial
THE RANCH BY FIRST INDUSTRIAL INLAND EMPIRE WEST, CA Summary Square Feet: 936,000 Percent Leased: 0% Estimated GAAP Investment: $86.7M / $93/SF Estimated GAAP Yield: 6.7% Target Completion Date: 4Q17 20
Slide 21: Strategically Located Land Positions
STRATEGICALLY LOCATED LAND POSITIONS LAND HOLDINGS (AS OF 3/31/17) Site Market Acres Developable SF First Nandina Logistics Inland Empire 69.2 1,450,000 Center First Perry Logistics Inland Empire 11.0 236,000 Center First Fontana Logistics Inland Empire 19.1 401,820 Center First Grand Parkway Pennsy
Slide 22: 2016 Acquisitions
iT j HH SUH LB USEE 2016 Acquisitions
Slide 23: 2016 Property Acquisitions
2016 PROPERTY ACQUISITIONS Purchase Price Estimated GAAP Name Market SF Occupancy $/SF ($M) Yield(1) 8751 Skinner Court Orlando 125,775 9.3 100% 74 7.8% 4473 Shader Road Orlando 199,100 14.0 100% 70 6.6% 1445 Engineer Street San Diego 99,307 11.9 100% 120 6.1% 81 Paragon Drive Chicago 121,142 9.0 0%
Slide 24: 2016 Property Acquisitions
2016 PROPERTY ACQUISITIONS 8751 Skinner Court 4473 Shader Road 1445 Engineer Street Orlando – 125,775 SF Orlando – 199,100 SF San Diego – 99,307 SF 81 Paragon Drive 1351 NW 78th Ave 6635 E 30th Street Chicago – 121,142 SF Miami – 63,389 SF Indianapolis – 99,877 SF 24
Slide 25: 2017 Acquisitions
iT j HH SUH LB USEE 2017 Acquisitions
Slide 26: 21301 E 33rd Drive
21301 E 33RD DRIVE AURORA, CO Summary Square Feet: 181,348 Purchase Price: $ 11.2M / $62/SF % Leased: 100% Yield: 5.9% 26
Slide 27: Balance Sheet
First Pinnacle Industrial Center – Dallas, TX BALANCE SHEET
Slide 28: Strong Balance Sheet
STRONG BALANCE SHEET AS OF MARCH 31, 2017 FIXED VS. FLOATING SUMMARY Amount Interest Weighted Debt Type ($M) % Rate Maturity (Yrs.) (2) Floating Secured 460 33 5.4% 3.0 18% Unsecured(1) 917 67 3.9% 3.9 Fixed Total 1,377 4.4% 3.6 82% W/A interest rate without LOC 4.9% MATURITIES Secured Debt Unsecure
Slide 29: Line of Credit/Term Loans Covenants
LINE OF CREDIT/TERM LOANS COVENANTS Total Leverage Unsecured Leverage 3.50x 3.42x 45 43.9% 3.5 3.36x 3.17x 2.99x 3.00x 40.4% 40.6% 3.0 40 37.5% 2.5 35 33.0% 33.0% 2.0 30 1.5 2012 2013 2014 2015 2016 1Q17 2012 2013 2014 2015 2016 1Q17 Secured Leverage Fixed Charge Coverage 30 3.5 3.32x 3.21x 25.2% 25
Slide 30: Conclusion
CONCLUSION Transformation • Strong balance sheet Creating stability for future • Refined portfolio economic cycles with • Tested platform Performance • Bumps, increasing market rents and lower TI/LC/CapEx On-going cash flow growth • Lease up of developments & value-add opportunity via acquisitions •
Slide 31: First Bandini Logistics Center – Los Angeles, CA
First Bandini Logistics Center – Los Angeles, CA