First Industrial Realty Trust, Inc. · NYSE:FR
First Industrial Realty Trust — REITWorld: 2019 Annual Conference
41 slides from First Industrial Realty Trust's conference presentation, November 2019
Slide 1: REITWorld: 2019 Annual Conference
REITWorld: 2019 Annual Conference November 2019
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 me FIRST fap INDUSTRIAL REALTY *TRUST
Slide 4: National Platform
National Platform As of September 30, 2019 Total Number of Total Occupancy Market Cap Properties Portfolio Size $6.5 472 66 97.7% INDUSTRIAL MILLION IN‐SERVICE BILLION BUILDINGS SQUARE FEET OCCUPANCY 75% 12% 11% 2% BULK REGIONAL LIGHT R&D WAREHOUSE WAREHOUSE INDUSTRIAL FLEX Total portfolio size and
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 lower cap ex, sustaining properties occupancy Development platform Prudent balance sheet and Increasing capital allocation producing qu
Slide 6: Portfolio Composition
Portfolio Composition % of Rental Income as of September 30, 2019 0.7% Seattle Minneapolis/St. Paul Milwaukee Central/Eastern PA 6.0% Detroit 1.1% 3.2% 1.7% 8.6% Chicago 6.8% 5.4% New Jersey Cleveland Northern California 3.4% 2.1% 5.1% Baltimore/D.C. 0.7% 4.5% Indianapolis St. Louis 1.4% Cincinnati
Slide 7: Recent Highlights
Recent Highlights • Cash Rental Rates Up 31.9% in 3Q19, Exceeding the Previous Quarterly Record Established in 2Q19 • Occupancy 97.7%, Up 40 Basis Points from 2Q19; Cash Same Store NOI Grew 2.9% • Started a 100 KSF Development in Philadelphia; Estimated Total Investment of $12.3M • Signed 141 KSF Sq
Slide 8: Portfolio Transformation Summary
Portfolio Transformation Summary As of September 30, 2019 $75M Developable Land $2,100 $1,800 $270M Total Investments Developments In Process $1,500 $1,200 $1,001M $2,060M Completed Developments IN 27.4 MSF $900 6.9% Cap Rate $600 $300 $714M Acquisitions (M) $0 ‐$300 $1,407.5M OUT 30.1 MSF ‐$600 $1,
Slide 9: Portfolio Transformation
Portfolio Transformation In‐Service Portfolio Southwest As of 12/31/09 20% Coastal 31% Southeast 783 1,993 89K 28K 7% TOTAL TOTAL NUMBER AVERAGE AVERAGE Midwest PROPERTIES OF TENANTS BUILDING SIZE (SF) TENANT SIZE 42% % BY RENTAL INCOME In‐Service Portfolio Southwest As of 9/30/19 22% Coastal 452 1,
Slide 10: Portfolio Transformation
Portfolio Transformation CapEx Profile $55 $50 $52 $45 35% Decline! $43 (M) $40 $38 $35 $34 $30 $25 2013 Actual 2015 Actual 2017 Actual 2019 Forecasted CapEx profile reflects impact of portfolio refinement | 10
Slide 11: Portfolio Proximity To Population Centers
Portfolio Proximity To Population Centers 30 mi 20 mi 10 mi Average Average Population (M) 3.7 2.2 0.7 Population 23% 75% 95% % of FR Portfolio by SF > 1M $62,658 $63,110 $64,497 Median Household Income Proximity to higher income population centers fits broad‐based supply chain requirements includin
Slide 12: Diversified Customer Base
Diversified Customer Base As of September 30, 2019 Largest Tenants by Occupied GLA % of Gross Leasable Area (MSF) Total GLA 1. Lowe's Home Centers 1.4 2.3% 2. Amazon.com Services 1.3 2.1% 3. Karma Automotive 0.9 1.5% 4. Rust‐Oleum 0.9 1.4% 5. Ferrero USA 0.7 1.2% 6. Federal‐Mogul Motorparts 0.7 1.2%
Slide 13: Industry-Leading Customer Service
Industry‐Leading Customer Service Ranked 1st 4.6 out of 5 Outperformed Among Top Industrial Clients in Overall Satisfaction Rate in 2019 The Kingsley Index of 4.10 for the the Kingsley Index who reported – a program high 8th year in a row owning more than 35 MSF Market leading customer service suppo
Slide 14: Key Portfolio Cash Flow Metrics
Key Portfolio Cash Flow Metrics OCCUPANCY % CASH RENTAL RATES % CASH SAME STORE NOI % (period end) (period average) (period end) 100 20 8 98.5 15.3 6.1 98 97.7 97.3 15 6 5.8 5.2 96.1 96.0 4.2 4.4 96 10 8.6 8.1 4 94.3 6.6 3.3 2.7 94 92.9 5 3.5 2.2 2 92 0 '13 '14 '15 '16 '17 '18 '19 0 90 YTD '13 '14 '
Slide 15: Financial Performance
Financial Performance FFO PER SHARE AFFO MILLIONS $1.75 $175 $167.5 $156.3 CAGR 8.2% $1.60 CAGR 17.5% $1.56 $150 $132.5 $1.50 $1.45 $125 $112.8 $1.34 $100 $94.5 $1.25 $1.16 $74.8 $75 $1.08 $1.00 $50 '13 '14 '15 '16 '17 '18 '13 '14 '15 '16 '17 '18 Strong track record and cash flow growth FFO per shar
Slide 16: Dividend Growth
Dividend Growth DIVIDEND PER SHARE $1.00 $0.92 CAGR 18.0% $0.87 $0.84 $0.75 $0.76 $0.50 $0.51 $0.41 $0.34 $0.25 '13 '14 '15 '16 '17 '18 3Q19 (1) Dividend growth aligned with cash flow growth. Sector low AFFO payout ratios of ≈64%. (1) Based on annualizing 1Q19 dividend of $0.23/share. | 16
Slide 17: Industrial Landscape
Industrial Landscape = FIRST Fu INDUSTRIAL REALTY+TRUST
Slide 18: Industrial Real Estate Demand Drivers
Industrial Real Estate Demand Drivers GDP Growth Supply Chain Consumption Optimization Global E-commerce Trade | 18
Slide 19: 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. | 19
Slide 20: Supply/Demand Picture
Supply/Demand Picture QUALITY LAND ENTITLEMENTS CONSTRUCTION EXCESS SUPPLY TOUGH TO FIND TAKE LONGER TIME INCREASING MOSTLY IN LARGER FORMAT, CERTAIN SUBMARKETS YTD Net Absorption 124 MSF Completions 161 MSF 2018: 6th Consecutive Year of Net Absorption > 200 MSF Source: CBRE‐EA.com Industrial Market
Slide 21: Investment Activity
Investment Activity " : } ASL } ee YW Mog | aT 4 saigaag uy alll Wy caehbitii.: Plo m= FIRST Fu INDUSTRIAL REALTY-TRUST
Slide 22: Developments Under Construction
Developments Under Construction First Independence First Park @ First Perry Logistics Center Central Crossing III Logistics Center 100,162 SF 119,808 SF 240,247 SF First Redwood Logistics Center – Buildings A & B 402,287 SF First Park 121 – Buildings A & B 345,280 SF First Fossil Creek Commerce Cent
Slide 23: Developments Under Construction
Developments Under Construction First Mountain Creek First Park 121 – First Perry First Fossil Creek Distribution Center ‐ BTS Buildings A & B Logistics Center Commerce Center Dallas Dallas Inland Empire Dallas 863,328 SF 345,280 SF 240,247 SF 198,589 SF 1 building 2 buildings 1 building 1 building
Slide 24: Developments Under Construction
Developments Under Construction HD Supply BTS @ First Grand Parkway First Park @ Central PV 303 Commerce Center ‐ I & II Crossing III Phoenix Houston Southern NJ 50,184 SF 370,660 SF 119,808 SF 1 building 2 buildings 1 building $7.7M $28.5M $12.7M Est. GAAP Investment Est. GAAP Investment Est. GAAP
Slide 25: Developments Under Construction
Developments Under Construction Ferrero BTS @ First Independence First Redwood Logistics PV 303 Logistics Center Center – A & B Phoenix Philadelphia Inland Empire 643,798 SF 100,162 SF 402,287 SF 1 building 1 building 2 buildings $48.6M $12.3M $47.4M Est. GAAP Investment Est. GAAP Investment Est. GA
Slide 26: 2019 Acquisitions
2019 Acquisitions 21110 E 31st Circle 930 Columbia 84,700 SF First Orchard 88 43,550 SF Business Center 172,654 SF 305 Sequoia 90,711 SF 770 Gills Mahalo & Maria 54,000 SF 31,900 SF 1964 Kellogg Ave 40,831 SF 518 KSF Acquired in 2019 $63M Purchase Price 5.4% Estimated Cash Yield As of September 30,
Slide 27: 2019 Acquisitions
2019 Acquisitions First Orchard 88 Mahalo & Maria 21110 E 31st Circle Business Center Chicago Los Angeles Denver 172,654 SF 31,900 SF 84,700 SF 1 building 1 building 1 building $12.3M $7.1M $9.0M Purchase Price Purchase Price Purchase Price $71/SF $223/SF $106/SF 60% Leased 100% Leased 100% Leased 6
Slide 28: 2019 Acquisitions
2019 Acquisitions 930 Columbia Ave 1964 Kellogg Ave 305 Sequoia Ave 770 Gills Drive Inland Empire San Diego Inland Empire Orlando 43,550 SF 40,831 SF 90,711 SF 54,000 SF 1 building 1 building 1 building 1 building $5.6M $7.3M $15.2M $6.3M Purchase Price Purchase Price Purchase Price Purchase Price $
Slide 29: Developments Completed Not In-Service
Developments Completed Not In‐Service First Aurora Commerce Center – Building D 555,840 SF First Logistics Center @ I‐78/81 – Building B 250,200 SF First Glacier Logistics Center 66,751 SF 873 KSF Completed Not In‐Service $67.2M Estimated Investment 6.7% Estimated Cash Yield 41 – 51% Average Potenti
Slide 30: Developments Completed Not In-Service
Developments Completed Not In‐Service First Logistics Center @ First Glacier Logistics First Aurora Commerce I‐78/81 – Building B Center Center – Building D Central PA Seattle Denver 250,200 SF 66,751 SF 555,840 SF 1 building 1 building 1 building $17.5M $11.4M $38.3M Total Est. Investment Total Est
Slide 31: Developments Placed In-Service
Developments Placed In‐Service First Joliet First Logistics Center @ Logistics Center I‐78/81 – Building A 355,969 SF 738,720 SF The Ranch by First Industrial – Bldg. 5 220,707 SF First Park Fairburn ‐ BTS 703,339 SF The Ranch by First Industrial – Bldg. 3 137,358 SF 2.3 MSF Developments Placed In‐S
Slide 32: Developments Placed In-Service
Developments Placed In‐Service The Ranch by First The Ranch by First First Park Fairburn ‐ BTS Industrial – Building 3 Industrial – Building 5 Inland Empire Inland Empire Atlanta 137,358 SF 220,707 SF 703,339 SF 1 building 1 building 1 building $12.1M $20.3M $40.2M Total Est. Investment Total Est. I
Slide 33: Developments Placed In-Service
Developments Placed In‐Service First Joliet First Logistics Center @ First 290 @ Logistics Center I‐78/81 – Building A Guhn Road Chicago Central PA Houston 355,969 SF 738,720 SF 126,250 SF 1 building 1 building 1 building $21.2M $58.6M $8.9M Total Est. Investment Total Est. Investment Total Est. Inv
Slide 34: Strategically Located Land Positions
Strategically Located Land Positions No. of Developable Market Acres Land Sites SF Chicago 1 154.0 3,200,000 Dallas/Ft. Worth 2 81.7 1,235,500 Denver 1 93.6 1,334,000 Central PA 1 35.9 502,000 Central PA Inland Empire 6 69.8 1,378,000 Chicago San Francisco Miami 2 33.7 514,000 Denver Nashville 1 101
Slide 35: Balance Sheet
Balance Sheet t i tT BUT rss a ae —-— = FIRST oy INDUSTRIAL REALTY-TRUST
Slide 36: Line of Credit/Term Loans Covenants
Line of Credit/Term Loans Covenants TOTAL LEVERAGE (1) (DEBT + PREFERRED) TO EBITDA 6.5 (annualized) 45 6.2x 40.6% 6.1x 40 37.5% 6.0 5.5x 35 33.0% 5.5 30 5.0 4.9x 27.6% 4.8x 25.9% 26.5% 4.7x 25 4.5 2014 2015 2016 2017 2018 3Q19 2014 2015 2016 2017 2018 3Q19 SECURED LEVERAGE FIXED CHARGE COVERAGE 20.
Slide 37: Strong Balance Sheet
Strong Balance Sheet As of September 30, 2019 Fixed vs. Floating Fixed Floating 94% 6% Amount Interest Weighted Debt Type % ($M) Rate Maturity (Yrs.) (1) Secured 181 13 4.6% 2.8 Unsecured 1,237 87 3.9% 6.3 Total 1,418 3.9% 5.8 (1) LOC maturity assumes exercise of one‐year extension option. | 37
Slide 38: Strong Balance Sheet
Strong Balance Sheet As of September 30, 2019 Maturities Secured Debt Unsecured Debt Line of Credit 750 600 450 $M (1) 78 699 300 260 150 200 2 20 67 82 0 10 2019 2020 2021 2022 Thereafter Average Interest 6.48% 6.02% 3.75% 3.16% 4.30% Rate % (1) LOC maturity assumes exercise of one‐year extension o
Slide 39: Conclusion
Conclusion m= FIRST fap INDUSTRIAL REALTY “TRUST
Slide 40: Strategy For Success
Strategy For Success MAXIMIZE FOCUS REDUCE DEVELOP MAINTAIN THE ECONOMICS ON HIGHER GROWTH ALLOCATION TO AS LONG AS BALANCE IN EVERY ASSETS AND LOW BARRIER YIELDS AND SHEET LEASE MARKETS MARKETS DEMANDS JUSTIFY DISCIPLINE | 40
Slide 41: Why First Industrial?
Why First Industrial? Cash Flow Value Creation Valuation Gap Growth Opportunity Through Development and To Peers and Select Acquisitions Market Transactions | 41
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