First Industrial Realty Trust, Inc. · NYSE:FR
First Industrial Realty Trust — Citi 2019 Global Property CEO Conference
34 slides from First Industrial Realty Trust's conference presentation, March 2019
Slide 1: Citi 2019 Global Property CEO Conference
CITI 2019 GLOBAL PROPERTY CEO CONFERENCE MARCH 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: Strategy for Success
STRATEGY FOR SUCCESS Maximize the economics on every lease Focus on higher rent growth assets and markets Continue to reduce allocation to low barrier markets Emphasize development as long as yields and demand justify Maintain balance sheet discipline 3
Slide 4: Industrial Real Estate Demand Drivers
INDUSTRIAL REAL ESTATE DEMAND DRIVERS • GDP growth • Consumption • E-commerce • Global trade • Supply chain optimization 4
Slide 5: Portfolio and Platform
PORTFOLIO AND PLATFORM AS OF DECEMBER 31, 2018 Square Footage Percentage by Property Type of Rental Income(1) 0.8% Seattle Bulk Warehouse Minneapolis/St. Paul Central/Eastern PA 75% 6.0% Milwaukee Detroit 1.2% 3.2% New Jersey 1.8% 9.8% 5.5% 6.6% Chicago Northern California 3.4% Cleveland 0.7% 3.7% 4
Slide 6: Recent Highlights
RECENT HIGHLIGHTS • Occupancy of 98.5%, up 120 basis points from 4Q17 • Cash Same Store NOI grew 6.0% in 4Q18, 5.8% for the year • Cash Rental Rates were up 6.5% in 4Q18, 8.1% in 2018 • Increased First Quarter 2019 dividend to $0.23 per share, a 5.7% increase • Leased 100% of the First Nandina Logis
Slide 7: Key Portfolio Cash Flow Metrics
KEY PORTFOLIO CASH FLOW METRICS 12.6% cash rental rate change on 2019 rollovers signed as of February 14th(4) Occupancy %(1) Cash Rental Rates %(2) Cash Same Store NOI %(3) 100 10 10 8.6 98.5 8.1 97.3 6.6 6.1 5.8 5.2 96.1 96.0 5 5 4.2 4.4 3.5 2.7 94.3 2.2 92.9 0 0 '13 '14 '15 '16 '17 '18 '13 '14 '15
Slide 8: U.S. Net Absorption and New Completions
U.S. NET ABSORPTION AND NEW COMPLETIONS CBRE-EA FORECAST HAS UNDERESTIMATED DEMAND MINIMAL E-COMMERCE TAILWIND FOR SEVERAL YEARS 400 300 200 100 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 -100 -200 2018 NET ABSORPTION 231 MSF COMPLETIONS 204 MSF
Slide 9: Investment Activity
INVESTMENT ACTIVITY
Slide 10: Developments Under Construction
DEVELOPMENTS UNDER CONSTRUCTION 2019 First Aurora Commerce Center – Bldg. D First Glacier Logistics Center 555,840 SF 66,751 SF Estimated Completion: 3Q19 Estimated Completion: 2Q19 First Park Fairburn - BTS 703,080 SF Estimated Completion: 3Q19 First Perry Logistics Center 239,950 SF Estimated Comp
Slide 11: Developments Under Construction
DEVELOPMENTS UNDER CONSTRUCTION 2019 Estimated GAAP Estimated % Estimated Property Market SF Investment $/SF Cash Leased Completion ($M) Yield(1) First Glacier Seattle 66,751 10.2 153 0% 5.5% 2Q19 Logistics Center First Park 121 – Phase I Dallas 345,280 27.5 80 18% 7.1% 2Q19 (2 Buildings) First Auro
Slide 12: First Glacier Logistics Center
FIRST GLACIER LOGISTICS CENTER SEATTLE Est. GAAP Est. % Estimated SF $/SF Investment Cash Yield Leased Completion 66,751 $10.2 $153 5.5% 0% 2Q19 12
Slide 13: First Park 121 – Phase I
FIRST PARK 121 – PHASE I DALLAS Est. GAAP Est. % Estimated SF $/SF Investment Cash Yield Leased Completion 345,280 $27.5M $80 7.1% 18% 2Q19 (2 Buildings) 13
Slide 14: First Aurora Commerce Center – Bldg. D
FIRST AURORA COMMERCE CENTER – BLDG. D DENVER Est. GAAP Est. % Estimated SF $/SF Investment Cash Yield Leased Completion 555,840 $38.3M $69 7.2% 0% 3Q19 14
Slide 15: First Park Fairburn - BTS
FIRST PARK FAIRBURN - BTS ATLANTA Est. GAAP Est. % Estimated SF $/SF Investment Cash Yield Leased Completion 703,080 $40.4M $57 6.0% 100% 3Q19 15
Slide 16: First Perry Logistics Center
FIRST PERRY LOGISTICS CENTER INLAND EMPIRE Est. GAAP Est. % Estimated SF $/SF Investment Cash Yield Leased Completion 239,950 $20.5M $85 5.9% 0% 4Q19 16
Slide 17: First Mountain Creek - BTS
FIRST MOUNTAIN CREEK - BTS DALLAS Est. GAAP Est. % Estimated SF $/SF Investment Cash Yield Leased Completion 863,328 $52.5M $61 5.7% 100% 4Q19 17
Slide 18: First Fossil Creek Commerce Center
FIRST FOSSIL CREEK COMMERCE CENTER DALLAS Est. GAAP Est. % Estimated SF $/SF Investment Cash Yield Leased Completion 198,589 $12.4M $62 7.0% 0% 4Q19 18
Slide 19: First Park @ PV 303 - BTS
FIRST PARK @ PV 303 - BTS PHOENIX Est. GAAP Est. % Estimated SF $/SF Investment Cash Yield Leased Completion 50,184 $7.7M $153 5.7% 100% 4Q19 19
Slide 20: Developments in Lease-Up
DEVELOPMENTS IN LEASE-UP 2018 First Joliet Logistics Center 355,199 SF First Logistics Center @ I-78/81 – Bldg A 738,720 SF First Logistics Center @ I-78/81 – Bldg B 250,200 SF The Ranch by First Industrial – Building V 220,707 SF The Ranch by First Industrial – First 290 @ Guhn Rd Building III 126,
Slide 21: Developments in Lease-Up
DEVELOPMENTS IN LEASE-UP 2018 Estimated GAAP Estimated % Building Property Market SF Investment $/SF Cash Leased Completion ($M) Yield(1) The Ranch by First Inland 137,358 12.3 90 0% 7.1% 2Q18 Industrial – Bldg. III Empire The Ranch by First Inland 220,707 20.2 92 0% 6.9% 2Q18 Industrial – Bldg. V E
Slide 22: Developments Placed in Service
DEVELOPMENTS PLACED IN SERVICE 2018 The Ranch by First Industrial – First Sycamore 215 Building I Logistics Center First Park 94 – Building II 49,571 SF 242,580 SF 602,348 SF The Ranch by First Industrial – Building II 155,742 SF First Park @ PV 303 – Building B 643,798 SF The Ranch by First Industr
Slide 23: Developments Placed in Service
DEVELOPMENTS PLACED IN SERVICE 2018 Estimated GAAP % Cash Building Property Market SF Investment $/SF Leased Yield(1) Completion ($M) First Sycamore 215 Inland 242,580 18.1 75 100% 6.6% 2Q17 Logistics Center Empire First Park 94 – Building II Chicago 602,348 29.9 50 100% 8.2% 2Q17 The Ranch by First
Slide 24: Property Acquisitions
PROPERTY ACQUISITIONS 2018 1402 Puyallup Street 56,336 SF 6407 S 210th St 35,132 SF First Park @ Central Crossing II 119,922 SF 28545 Livingston Ave 170,556 SF First Park @ 4401 Shader Rd Ocean Ranch II 93,608 SF 225,489 SF Energy Commerce Business Park II 334,360 SF 24
Slide 25: Property Acquisitions
PROPERTY ACQUISITIONS 2018 Purchase Estimated Property Market SF Price $/SF % Leased(3) Cash ($M) Yield(1) 6407 S. 210th St Seattle 35,132 5.6 159 100% 5.7% First Park @ Ocean San Diego 225,489 36.7 163 100% 5.4% Ranch II 4401 Shader Rd Orlando 93,608 8.7 93 100% 5.7% 28545 Livingston Southern 170,5
Slide 26: First Park @ PV 303 – Joint Venture
FIRST PARK @ PV 303 – JOINT VENTURE • Acquisition of 532 net acres at PV 303 Business Park in Phoenix • $49M (≈ $2 per land foot), FR share: 49% • Partner: Diamond Realty, the US real estate arm of Mitsubishi Corporation • Speculative and build-to-suit development plus one-off land sales to users •
Slide 27: First Park @ PV 303 – Joint Venture
FIRST PARK @ PV 303 – JOINT VENTURE 27
Slide 28: Strategically Located Land Positions
STRATEGICALLY LOCATED LAND POSITIONS AS OF FEBRUARY 13, 2019 Developable Site Market Acres SF First Park 94 Chicago 154.0 3,200,000 First Aurora Commerce Center Denver 93.6 1,334,000 Rockdale Nashville 101.7 1,200,000 Stockton San Francisco 57.9 1,200,000 First Park @ PV 303 Phoenix 56.3 900,000 Pen
Slide 29: Balance Sheet
BALANCE SHEET
Slide 30: Line of Credit/Term Loans Covenants
LINE OF CREDIT/TERM LOANS COVENANTS (DEBT + PREFERRED) TO EBITDA TOTAL LEVERAGE(1) (annualized) 6.5 45 6.2x 40.6% 6.1x 40 37.5% 6.0 5.5x 35 33.0% 5.5 30 5.0 4.9x 27.6% 25.9% 4.7x 25 4.5 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 SECURED LEVERAGE FIXED CHARGE COVERAGE 20.0% 4.5 4.0 18.4% 15.0%
Slide 31: Strong Balance Sheet
STRONG BALANCE SHEET AS OF DECEMBER 31, 2018 Fixed vs. Floating Floating 0% Fixed 100% Amount Interest Weighted Debt Type ($M) % Rate Maturity (Yrs.) Secured 297 23 5.8% 2.5 Unsecured 1,009 77 3.8% 6.7 Total 1,306 4.2% 5.8 31
Slide 32: Strong Balance Sheet
STRONG BALANCE SHEET AS OF DECEMBER 31, 2018 Maturities Secured Debt Unsecured Debt Line of Credit (1) 600 500 400 $M 300 559 200 260 200 100 80 59 67 82 0 2019 2020 2021 2022 Thereafter Average Interest 7.65% 6.90% 3.75% 3.16% 4.39% Rate % 32 (1) LOC balance is $0 at December 31, 2018.
Slide 33: Why First Industrial?
WHY FIRST INDUSTRIAL? Cash flow growth opportunity Ability to create value through development and select acquisitions via platform Valuation gap to peers and market transactions 33
Slide 34: nner a .
nner a . \
First Industrial Realty Trust — Citi 2019 Global Property CEO Conference on 6ix