First Industrial Realty Trust, Inc. · NYSE:FR
First Industrial Realty Trust — Citi Global Property Conference 2020
27 slides from First Industrial Realty Trust's conference presentation, March 2020
Slide 1: Citi Global Property Conference
Citi Global Property Conference March 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 ms FIRST Fi INDUSTRIAL REALTY sTRUST
Slide 4: Recent Highlights
Recent Highlights • Cash rental rates up 13.9% in 2019; estimated growth of 10% to 14% in 2020 • Occupancy 97.6%; Cash Same Store NOI grew 3.1% in 2019, 2020 projected growth of 4.75% at guidance midpoint • Increased First Quarter 2020 dividend to $0.25 per share, an 8.7% increase aligned with forec
Slide 5: 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 6: National Platform
National Platform As of December 31, 2019 Total Number of Total Occupancy Market Cap Properties Portfolio Size $6.9 450 63.4 97.6% INDUSTRIAL MILLION IN-SERVICE BILLION BUILDINGS SQUARE FEET OCCUPANCY 77% 11% 10% 2% BULK REGIONAL LIGHT R&D WAREHOUSE WAREHOUSE INDUSTRIAL FLEX Total portfolio size and
Slide 7: Portfolio Composition
Portfolio Composition % of Rental Income as of December 31, 2019 1.1% Seattle Minneapolis/St. Paul Milwaukee Detroit Central/Eastern PA 5.5% 1.1% 3.0% 1.6% 9.8% 5.6% New Jersey Chicago 7.0% Cleveland Northern California 1.8% 4.9% Baltimore/D.C. 0.6% 4.9% Cincinnati Denver 1.4% Nashville 20.0% 4.4% 5
Slide 8: Portfolio Transformation Summary
Portfolio Transformation Summary As of December 31, 2019 $99M $2,300 Developable Land $2,000 $209M Total Investments Developments In Process $1,700 $1,400 $1,165M Completed Developments $2,191M $1,100 IN 28.4 MSF $800 6.9% Cap Rate $500 $718M Acquisitions $200 (M) -$100 $1,563M -$400 OUT 33.6 MSF -$
Slide 9: 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 10: 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 8 98.5 98 97.6 6.1 97.3 5.8 6 5.2 96.1 96.0 10 4.75 96 8.6 4.4 8.1 6.6 4 3.1 94 5 3.5 2 92 90 0 0 '15 '16 '17 '18 '19 '15 '16 '17 '18 '19 '15 '16 '17 '18 '19 '2
Slide 11: Financial Performance
Financial Performance FFO PER SHARE AFFO (M) DIVIDEND PER SHARE $2.00 $205 $202.0 CAGR 14.4% $1.00 CAGR 12.4% $1.00 2015-2020F CAGR 6.4% 2015-2020F $183.9 $1.83 $0.92 2015-2020F $180 $0.87 $1.74 $167.5 $0.84 $1.75 $156.3 $155 $0.76 $1.60 $0.75 $1.56 $132.5 $1.50 $1.45 $130 $112.8 $1.34 $0.51 $105 $0
Slide 12: Industrial Landscape
Industrial Landscape ms FIRST INDUSTRIAL REALTY-+TRUST
Slide 13: Industrial Real Estate Demand Drivers
Industrial Real Estate Demand Drivers GDP Growth Supply Chain Consumption Optimization Global E-commerce Trade | 13
Slide 14: E-commerce Driving Force
E-commerce Driving Force $1,000 $800 E-commerce Sales (Billions) $798 12%+ CAGR $746 $679 $600 $590 $507 $400 $459 $402 $200 $0 2016 2017 2018 2019F 2020F 2021F 2022F Every $1B of e-commerce sales requires 1.25 MSF Source: CBRE, Forrester. | 14
Slide 15: Supply/Demand Picture
Supply/Demand Picture QUALITY LAND ENTITLEMENTS CONSTRUCTION NEW SUPPLY TOUGH TO FIND TAKE LONGER TIME AND COSTS INCREASING INCREASING MOSTLY IN LARGER FORMAT, CERTAIN SUBMARKETS 2019 Net Absorption 183 MSF vs Completions 224 MSF First year since 2009 of completions > net absorption National vacancy
Slide 16: Investment Activity
Investment Activity ig FIRST Fi
Slide 17: Creating Value Through Development
Creating Value Through Development Total SF Total GAAP Investment Cash Yield Margin % Range Placed In-Service ($M) 2016-17 3,881,743 255.7 7.4% ±45% 2018 3,454,560 227.1 7.9% 82% – 92% 2019 4,428,701 324.7 6.7% 42% - 52% Totals 11,765,004 $807.5 7.3% ±60% Created ≈$480M of value the last four years
Slide 18: Developments Placed In Service
Developments Placed In Service As of December 31, 2019 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 39.5
Slide 19: Developments Completed/Under Construction
Developments Completed/Under Construction As of December 31, 2019 Estimated GAAP % Estimated Estimated Property Market SF Investment $/SF Leased Cash Yield Completion ($M) First Fossil Creek Commerce Dallas/ 198,589 12.4 $62 0% 7.0% Complete Center Fort Worth First Grand Parkway Commerce Houston 371
Slide 20: First Park Miami
First Park Miami South Florida First Park Miami Total Developable Acres 63.4 Acquisition Price $48.9M Phase I Planned Development Start Summer 2020 Building I 258,925 SF Building II 132,751 SF Building III 200,264 SF Total Size 591,940 SF Total Estimated Cost $90M Targeted Cash Yield = Mid-Fives | 2
Slide 21: 2019/2020 Acquisitions
2019/2020 Acquisitions As of February 12, 2020 Acquisition Acquisition % Estimated Property Market SF Price Price/SF Leased Cash Yield ($M) ($) First Orchard 88 Business Chicago 172,654 12.3 71 60% 6.5% Center Mahalo & Maria Los Angeles 31,900 7.1 223 100% 4.2% 21110 E 31st Circle Denver 84,700 9.0
Slide 22: Strategically Located Land Positions
Strategically Located Land Positions As of December 31, 2019 No. of Developable Market Acres Land Sites SF Chicago 1 167.7 3,200,000 Dallas/Ft. Worth 2 53.7 801,500 Denver 1 84.8 1,333,000 Central PA 1 35.9 502,000 Central PA Inland Empire 5 65.6 1,306,000 Chicago NorCal South Florida 3 37.3 611,000
Slide 23: Strong Balance Sheet
Strong Balance Sheet t i] ‘ rye Sea ms FIRST Fa INDUSTRIAL tate Must
Slide 24: Strong Balance Sheet
Strong Balance Sheet TOTAL LEVERAGE (1) (DEBT + PREFERRED) TO EBITDA 6.5 (annualized) 45 6.2x 40.6% 6.1x 40 37.5% 6.0 5.5x 35 33.0% 5.5 30 5.0 4.9x 27.6% 27.8% 4.7x 25.9% 4.6x 25 4.5 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 SECURED LEVERAGE FIXED CHARGE COVERAGE 20.0% 18.4% 16.7%
Slide 25: Staggered Maturity Schedule
Staggered Maturity Schedule As of December 31, 2019 Maturities Secured Debt Unsecured Debt Line of Credit 500 (1) 158 400 Weighted Average Maturity = 5.5 years Weighted Average Interest Rate = 3.8% 300 $M 200 260 200 100 225 182 131 150 20 67 77 11 1 0 9 2020 2021 2022 2023 - 2026 2027 2028 2029 203
Slide 26: Conclusion
Conclusion
Slide 27: Why First Industrial?
Why First Industrial? Cash Flow Value Creation Strategy/Size Growth Opportunity Through Development and Nimble, Ability to Move the Needle Select Acquisitions with Incremental Investments | 27
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