First Industrial Realty Trust, Inc. · NYSE:FR
First Industrial Realty Trust — Citi 2014 Global Property CEO Conference
23 slides from First Industrial Realty Trust's conference presentation, March 2014
Slide 1: First Industrial Realty Trust Investor Presentation
First Industrial Realty Trust Investor Presentation Citi 2014 Global Property CEO Conference | March 2014
Slide 2: Safe Harbor
Safe Harbor This presentation may contain certain 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
Slide 3: Broad Platform and Presence
Broad Platform and Presence Seattle Minneapolis Milwaukee Central & Detroit Eastern PA New Jersey Chicago Salt Lake City Cleveland Indianapolis Balt/Wash Denver Cincinnati St. Louis Nashville Southern California Phoenix Atlanta Dallas Houston Tampa Miami 3
Slide 4: Where We've Been… 2009 – 2010
Where We’ve Been… 2009 – 2010 • Addressed liquidity and maturities • Redefined strategy • Rationalized G&A • Set the stage for portfolio refinement Minneapolis, MN (285,000 SF – Acquired 2010) 4
Slide 5: Where We've Been… 2011 – YE 2013
Where We’ve Been… 2011 – YE 2013 • Drove occupancy and NOI Occupancy increased 790 bps since YE 2010 • Strengthened balance sheet • Implemented “Addition by Subtraction” • Initiated selective growth • Re-initiated common dividend Central PA (390,000 SF – Acquired 2012) 5
Slide 6: Where We've Been… Key Portfolio Cash Flow Metrics
Where We’ve Been… Key Portfolio Cash Flow Metrics Occupancy %(1) Cash Rental Rates %(2) (FY) Same Store NOI % (FY) 100 5 10 0 6.3 92.9 2009 2010 2011 2012 2013 89.9 5 -5 -3.4 87.9 -4.7 2.7 85.0 -6.9 -10 0.1 82.0 0 -11.8 2009 2010 2011 2012 2013 -15 -15.1 -2.7 75 -3.8 2009 2010 2011 2012 2013 -5 -20
Slide 7: Where We've Been… Capital Management Progress
Where We’ve Been… Capital Management Progress (millions) $2,500 ■ Preferred Stock ■ Net Debt $2,309 Net Debt(1) & Pref. Stock/ EBITDA(2) 11.1x $2,000 $1,741 Net Debt(1) & Pref. Stock/ EBITDA(2) 8.6x $1,500 $1,364 Net Debt(1) & Pref. Stock/ EBITDA(2) 6.6x Debt/Total Debt/Total Debt/Total Assets(3) As
Slide 8: Upgrading the Portfolio
Upgrading the Portfolio FR Portfolio – Assets Book Value $2.9B (3Q10) GAAP Yield/ LTM Sales Cap Rate + Investments 2010+ = $337M(1) 12% Increase 6.7% - Dispositions 4Q10+ = $325M 11% Decrease 6.0% Total Portfolio Change $662M = 23% Net Change (1) Through 4Q13. Reflects full development cost of First
Slide 9: Favorable Industry Fundamentals
Favorable Industry Fundamentals U.S. Industrial Real Estate Annual Completions/Net Absorption (MSF) 400 ■ Completions ■ Net Absorption 300 200 Forecast 100 - 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (100) (200) (300)
Slide 10: Where We're Going… Strategy for Success
Where We’re Going… Strategy for Success Leasing and Operations Capital Portfolio Management Management Management • Drive to +95% by YE 2015 • Conservative and Flexible • Selective Acquisitions • Grow Rents Balance Sheet • Targeted Development • Normalize TI/LC/CapEx • Return to Investment Opportuni
Slide 11: FR Recent Actions
FR Recent Actions • Increased common dividend by 20.6% to $0.1025 per share/unit for 1Q14 • Closed on a $200M 7-year term loan with an initial rate of LIBOR plus 175 bps • Used swaps to effectively fix rate at 4.04% • Received investment grading from Standard & Poor’s on unsecured notes • Announced
Slide 12: Areas for Potential Cash Flow Growth
Areas for Potential Cash Flow Growth • Balance sheet • Small tenant occupancy • Rental rate bumps on existing leases and growth in market rents • TI/LC/Cap Ex • Key bulk warehouse lease-up opportunities • Future development and acquisitions 12
Slide 13: U.S. Market Rent Recovery
U.S. Market Rent Recovery $/SF Torto Wheaton Warehouse Rent Annual Index 7 Previous Peak 6 5 Previous Bottom 4 3 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Source: CBRE Econometric Advisors (CBRE-EA) 4Q 2013 13
Slide 14: Drive to +95%! Ten Key Bulk Opportunities
Drive to +95%! Ten Key Bulk Opportunities Per Investor Day November 2013 Vacant SF as of Vacant SF as of Market Property 9/30/13 12/31/13 Los Angeles First Dominguez Gateway Center 213,544 0 Chicago 9501 Nevada 118,670 118,670 Atlanta 596 Bonnie Valentine 212,525 106,525 Central & Eastern PA 18212 S
Slide 15: First Bandini Logistics Center • Southern California
First Bandini Logistics Center • Southern California Development Summary Square Feet: 489,000 Estimated Investment: $54M Estimated GAAP Yield: 6.5% Completed: 4Q13 Potential NOI Impact: $3.5M 15
Slide 16: First Logistics Center @ I-83 • Central Pennsylvania
First Logistics Center @ I-83 • Central Pennsylvania Development Summary Square Feet: 708,000 Estimated Investment: $34M Estimated GAAP Yield: 8.4% Completed: 4Q13 Potential NOI Impact: $2.9M 16
Slide 17: 4100 Rock Creek • Chicago
4100 Rock Creek • Chicago Acquisition – In Lease-Up Houbolt Road Exit Summary Square Feet: 509,216 Initial Investment: $20.5M Estimated GAAP Yield: 6.6% Potential NOI Impact: $1.4M 17
Slide 18: I-94 Distribution Center • Chicago
I-94 Distribution Center • Chicago Acquisition – 100% Leased Summary Square Feet: 626,784 Investment: $26.3M In-Place GAAP Yield: 6.7% NOI Impact: $1.9M 18
Slide 19: First Northwest Commerce Center • Houston
First Northwest Commerce Center • Houston Planned Development Start – 1H 2014 Summary Square Feet: 350,000 Estimated Investment: $20M Estimated GAAP Yield: 8.0% Targeted Completion Date: 1Q15 Potential NOI Impact: $1.6M 19
Slide 20: First Pinnacle Industrial Center • Dallas
First Pinnacle Industrial Center • Dallas Planned Development Start – 1H 2014 Summary Square Feet: 598,000 Estimated Investment(1): $26M Estimated GAAP Yield(1): 7.5% Targeted Completion Date: 1Q15 Potential NOI Impact: $1.9M (1) Incremental investment $23M, yield 8.3% 20
Slide 21: 2014 Guidance Summary
2014 Guidance Summary (1) • FFO per share: $1.12 to $1.22 – Includes $0.01 net impact of losses on retirement of debt and preferred stock and a one-time restoration fee of $0.02 • Average quarter-end in-service occupancy: 92.5% to 93.5% – 2013 average quarter-end: 91.2% • Same-store NOI (cash basis)
Slide 22: FR Value Propositions
FR Value Propositions • Opportunity to deliver AFFO growth of as much as 70% to 90% by YE 2017 • Valuation discount relative to: − Peers − Sales comparables − Replacement cost 22
Slide 23: Q&A
Q&A Citi 2014 Global Property CEO Conference | March 2014
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