First Industrial Realty Trust, Inc. · NYSE:FR
First Industrial Realty Trust — Investor Presentation (May 2021)
35 slides from First Industrial Realty Trust's investor presentation, May 2021
Slide 1: Investor Presentation
Investor Presentation May 2021
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
Slide 4: Recent Highlights
Recent Highlights (1) • Occupancy of 95.7%; cash rental rates up 10.4% • 12.7% cash rental rate increase on 2021 rollovers signed through April 21st; 72% of 2021 expirations • Started three developments totaling 1.4 MSF, estimated investment of $99.6M • Announced two new development starts for 2Q21
Slide 5: Strategy
Strategy U.S. industrial platform Distribution and other focused on 15 key logistics markets critical supply chain with a Coastal orientation properties Drive cash flow growth by: • increasing rents New investment Strong balance sheet • capturing rental rate bumps primarily via development and prude
Slide 6: Portfolio Composition
Portfolio Composition % of Rental Income as of March 31, 2021 1.1% Seattle Minneapolis/St. Paul Milwaukee Central/Eastern PA 4.6% Detroit 1.0% 2.6% 2.0% 9.4% 5.2% New Jersey Chicago 7.0% Cleveland Northern California 1.7% 5.1% Baltimore/D.C. 0.9% 4.9% Cincinnati Denver 22.1% 1.4% Nashville 5.6% 5.7%
Slide 7: Infill Portfolio
Infill Portfolio Distance From Average % of Portfolio Median Each Asset (mi.) Population (M) with Pop > 1M HH Income 10 0.7 26% $68,144 20 2.3 77% $68,144 30 3.9 96% $69,911 U.S. Median = $62,203 Proximity to higher income population fits broad-based supply chain requirements including E-commerce So
Slide 8: Key Portfolio Cash Flow Metrics
Key Portfolio Cash Flow Metrics As of March 31, 2021 OCCUPANCY CASH RENTAL RATES CASH SAME STORE NOI (1) (period end) (period average) (full year) 100% 15% 13.9% 8% 13.5% 98.5% ±12.0% 98% 97.6% 6.1% 97.3% 5.8% ±97.0% 6% 96.0% 10% 96% 95.7% 8.6% 8.1% 4.4% 4.4% ±4.0% 6.6% 4% 3.1% 94% 5% 2% 92% 90% 0%
Slide 9: Financial Performance
Financial Performance FFO PER SHARE (1) DIVIDEND PER SHARE $2.00 $1.15 CAGR 7.3% CAGR 5.6% $1.08 $1.90 2016-2021F 2016-2021F $1.00 $1.80 $1.00 $1.74 $0.92 $1.75 $0.87 $0.84 $0.85 $1.60 $1.56 $0.76 $1.50 $1.45 $0.70 $0.55 $1.25 $0.40 $1.00 $0.25 (2) '16 '17 '18 '19 '20 '21F '16 '17 '18 '19 '20 '21F Q
Slide 10: U.S. Industrial Market Landscape
U.S. Industrial Market Landscape • Net absorption >100 MSF in two E-COMMERCE % OF TOTAL RETAIL SALES consecutive quarters – first time in history (ex Motor Vehicles & Gas, Inflation Adjusted) • New supply has rebounded to meet demand post-Covid pause ̵ 59 MSF completed in 1Q21 • 2021 Forecast: 311 M
Slide 11: Investment Activity
Investment Activity 1} FIRST
Slide 12: Creating Value Through Development
Creating Value Through Development Total SF Total GAAP Investment Cash Yield Margin % Range Placed In-Service ($M) 2016-17 3,881,743 255.7 7.4% ±45% 2018 3,454,560 227.1 7.9% 101% - 111% 2019 4,428,701 324.5 6.7% 50% - 60% 2020 2,526,603 221.7 7.2% 58% - 68% 1Q21 421,056 43.1 6.7% 63% – 73% Totals 1
Slide 13: First Park 121 – Bldgs. C & D
First Park 121 – Bldgs. C & D Dallas Existing Bldg. B Existing Existing 125 KSF Bldg. E Bldg. A 100% 434 KSF 220 KSF Leased 100% 0% Leased Leased Bldg. C Bldg. D 125 KSF 250 KSF 100% 0% Leased Leased Square Feet 375,000 2Q21 Development Est. GAAP Investment $30M Start $/SF $80 % Leased 33% Est. Cash
Slide 14: First Aurora Commerce Center – Bldg. E
First Aurora Commerce Center – Bldg. E Denver Bldg. A - 130 KSF (Future Start) Existing Existing Bldg. B - 130 KSF Bldg. D Bldg. E (Future Start) Building Bldg. H 556 KSF 588 KSF 485 KSF 100% Leased (Future Start) Square Feet 588,085 2Q21 Est. GAAP Investment $52.6M Development Start $/SF $89 % Leas
Slide 15: Developments Under Construction
Developments Under Construction As of March 31, 2021 Estimated GAAP % Estimated Estimated Property Market SF Investment $/SF (1) Leased Cash Yield (2) Completion ($M) First Park @ PV303 – Phoenix 547,764 42.6 78 0% 6.6% 3Q21 Building C First Nandina II Logistics Inland 221,321 22.4 101 100% 6.2% 3Q2
Slide 16: First Park @ PV303 – Building C
First Park @ PV303 – Building C Phoenix Camelback 303 – JV Land Building C – 547,764 SF (Expandable by 343 KSF) Square Feet 547,764 Est. GAAP Investment $42.6M $/SF $78 % Leased 0% Est. Cash Yield 6.6% PV303 – JV Land Est. Completion 3Q21 | 16
Slide 17: First Nandina II Logistics Center – BTS
First Nandina II Logistics Center – BTS Inland Empire Square Feet 221,321 Est. GAAP Investment $22.4M $/SF $101 % Leased 100% Est. Cash Yield 6.2% Est. Completion 3Q21 | 17
Slide 18: First 95 Distribution Center I
First 95 Distribution Center I South Florida Square Feet 140,880 Est. GAAP Investment $21.7M $/SF $154 % Leased 0% Est. Cash Yield 6.0% Est. Completion 3Q21 | 18
Slide 19: First Park Miami
First Park Miami South Florida Square Feet 591,940 Est. GAAP Investment $91.2M $/SF $154 % Leased 0% Est. Cash Yield 5.6% Est. Completion 4Q21 Three buildings, 592 KSF underway; additional 624 KSF developable on owned land | 19
Slide 20: First Park Miami Future Growth
First Park Miami Future Growth South Florida Multi-Stage Land Acquisition & Development • FR currently owns 31 additional acres, FUTURE PHASES FR OWNED 624 KSF developable UNDER • Future growth from option for staggered CONSTRUCTION takedown as filling of former quarry progresses ̵ 59 acres, up to 1
Slide 21: First Rockdale IV
First Rockdale IV Nashville Square Feet 500,240 Est. GAAP Investment $26.8M $/SF $54 % Leased 0% Est. Cash Yield 7.2% Est. Completion 1Q22 | 21
Slide 22: First Wilson Logistics Center I
First Wilson Logistics Center I Inland Empire Square Feet 303,204 Est. GAAP Investment $30.2M $/SF $100 % Leased 0% Est. Cash Yield 6.0% Est. Completion 1Q22 | 22
Slide 23: Strategically Located Land To Drive Growth
Strategically Located Land To Drive Growth As of April 21, 2021 Chicago Denver 168 Acres | 3.2 MSF Central PA 52 Acres | 0.7 MSF 9 Acres | 0.1 MSF Seattle 7 Acres | 0.1 MSF Nashville 42 Acres | 0.7 MSF NorCal Central Florida 61 Acres | 1.2 MSF 26 Acres | 0.3 MSF Inland Empire South Florida (2) 67 Ac
Slide 24: PV303 – JV Land
PV303 – JV Land Phoenix Land & Development Joint Venture • Acquisition of 532 net acres − $49M Investment, $2/LSF − FR share - 49%; $24M Unnamed Data Center User • Sold 5 sites, 315 acres and returned 137% of invested capital Remaining Land 600 KSF • FR acquired 39 acres from JV for 644 KSF BTS with
Slide 25: Camelback 303 – JV Land
Camelback 303 – JV Land Phoenix Land & Development Joint Venture Bethany Home Road 526,000 526,000 418,000 326,000 Cotton Lane • Acquisition of 569 unimproved net acres − $73M Investment 1,500,000 950,000 − $3/LSF − FR share - 43%; $31M 870,000 • Speculative & BTS development plus land 610,000 770,0
Slide 26: Developments Completed Not In Service
Developments Completed Not In Service As of March 31, 2021 Estimated GAAP % Estimated Completion Property Market SF Investment $/SF Leased (1) Cash Yield (2) Date ($M) First Independence Philadelphia 100,272 12.3 123 0% 6.1% 2Q20 Logistics Center Total 100,272 $12.3 $123 0% 6.1% Average potential ma
Slide 27: Developments Placed In Service
Developments Placed In Service As of March 31, 2021 Estimated GAAP Placed % Estimated Property Market SF Investment $/SF In Service Leased (1) Cash Yield (2) ($M) Date First Redwood Inland 43,996 6.8 155 100% 6.5% 1Q21 Logistics Center I – Bldg. B Empire First Cypress South 377,060 36.3 96 100% 6.8%
Slide 28: 2020 Developments Placed In Service
2020 Developments Placed In Service Estimated GAAP Placed % Estimated Property Market SF Investment $/SF In Service Leased (1) Cash Yield (2) ($M) Date Ferrero BTS @ PV303 Phoenix 643,798 53.7 83 100% 7.8% 1Q20 First Sawgrass South 103,356 16.2 157 100% 5.5% 4Q20 Commerce Center Florida First Redwoo
Slide 29: 2021 Acquisitions
2021 Acquisitions Acquisition Acquisition % Estimated Property Market SF Price Price/SF Leased (1) Cash Yield (2) ($M) ($) 2085 Burroughs Ave NorCal 62,474 12.3 197 100% 4.8% Total 62,474 $12.3 $197 100% 4.8% (1) As of the Company’s results press release dated April 21, 2021. (2) Defined as first ye
Slide 30: 2020 Acquisitions
2020 Acquisitions Acquisition Acquisition % Estimated Property Market SF Price Price/SF Leased (1) Cash Yield (2) ($M) ($) 27403 Industrial Boulevard NorCal 22,500 4.9 219 100% 5.0% Nottingham Ridge Logistics Baltimore 751,074 69.7 93 93% 5.9% Center – A & B 19302-19400 S Laurel Park Dr Los Angeles
Slide 31: Financial
2 S) Cc o = ic INDUSTRIAL F il REALTY+TRUST FIRST
Slide 32: Strong Balance Sheet
Strong Balance Sheet TOTAL LEVERAGE (1) (DEBT + PREFERRED) TO EBITDA 6.5 (annualized) 45 40 6.0 33.0% 5.5x 35 5.5 30 27.6% 27.8% 27.6% 25.9% 27.6% 5.0 4.9x 4.8x 4.8x 25 4.7x 4.6x 20 4.5 2016 2017 2018 2019 2020 1Q21 2016 2017 2018 2019 2020 1Q21 FIXED CHARGE COVERAGE SECURED LEVERAGE 6.0 20.0% 5.0 1
Slide 33: Manageable Maturity Schedule
Manageable Maturity Schedule As of March 31, 2021 (1) Secured Debt Unsecured Debt Line of Credit 700 600 (2) Weighted Average Maturity = 6.1 years 500 Weighted Average Interest Rate = 3.57% 400 $M 300 200 260 200 225 250 100 182 211 131 61 72 1 9 0 2021 2022 2023 - 2026 2027 2028 2029 2030 2032 Aver
Slide 34: Conclusion
Conclusion ms FIRST [ij INDUSTRIAL REALTY sTRUST
Slide 35: First Industrial's Investment Strengths
First Industrial’s Investment Strengths TESTED Portfolio passed the “COVID test” Well-positioned to capitalize on the strong industrial sector fundamentals GROWTH with a robust tailwind from E-commerce acceleration Targeting investment in 15 key logistics markets with strategic land positions FOCUS
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