First Industrial Realty Trust, Inc. · NYSE:FR
First Industrial Realty Trust — REITWeek 2019: NAREIT's Investor Conference
41 slides from First Industrial Realty Trust's conference presentation, June 2019
Slide 1: REITWeek 2019 NAREIT's Investor Conference
REITWeek 2019 NAREIT’s Investor Conference JUNE 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 Supply Chain Consumption Optimization Global E-Commerce Trade 4
Slide 5: Portfolio and Platform
PORTFOLIO AND PLATFORM AS OF MARCH 31, 2019 Square Footage Percentage by Property Type of Rental Income(1) 0.7% Seattle Bulk Warehouse Minneapolis/St. Paul Central/Eastern PA 75% 6.6% Milwaukee Detroit 1.1% 3.2% New Jersey 1.7% 8.7% 5.5% 6.9% Chicago Northern California 3.4% Cleveland 0.7% 5.2% 4.5%
Slide 6: Portfolio Transformation Summary
PORTFOLIO TRANSFORMATION SUMMARY AS OF MARCH 31, 2019 Key Portfolio Statistics 12/31/09 3/31/19 (1) %Δ Number of Properties 783 447 (43%) Number of Tenants 1,993 1,180 (41%) Average Building Size (KSF) 89 136 53% Average Tenant Size (KSF) 28 50 79% 2000 $298M / 3.9 MSF $71M 1600 Developments In Proc
Slide 7: Portfolio Proximity to Population Centers
PORTFOLIO PROXIMITY TO POPULATION CENTERS Average Population FR Portfolio > 1M % of FR Portfolio Average Median Household by SF Population Income 10 miles 23% 0.7M $62,658 20 miles 75% 2.2M $63,110 30 miles 95% 3.7M $64,497 2018 U.S. Average $58,100 Proximity to higher income population centers fits
Slide 8: Recent Highlights
RECENT HIGHLIGHTS • Signed 1.8 million square feet of new leases for development and value-add acquisitions as of April 23, 2019 – Includes 739,000 square-foot First Logistics Center @ I-78/81 in Central Pennsylvania to Ferrero USA, Inc. • Increased FFO per share guidance $0.01 at midpoint • Occupan
Slide 9: $150M Unsecured Notes Private Placement
$150M UNSECURED NOTES PRIVATE PLACEMENT On May 16, entered into a note and guaranty agreement to issue $150 million of fixed rate senior unsecured notes in a private placement • Coupon rate of 3.97% • Effective rate of 4.23% ‒ Reflects settlement of interest rate protection agreements related to the
Slide 10: Key Portfolio Cash Flow Metrics
KEY PORTFOLIO CASH FLOW METRICS 13.0% cash rental rate change on 2019 rollovers signed as of April 23, 2019(4) Occupancy %(1) Cash Rental Rates %(2) Cash Same Store NOI %(3) 100 10 10 8.6 98.5 8.1 8.0 97.3 97.3 6.6 6.1 5.8 5.2 96.1 96.0 5 5 4.2 4.4 3.5 3.2 2.7 94.3 2.2 92.9 0 0 '13 '14 '15 '16 '17 '
Slide 11: Financial Performance
FINANCIAL PERFORMANCE FFO Per Share (1) AFFO (2) Dividend Per Share (3) (millions) $1.00 $1.75 $175 $167.5 $0.92 $156.3 CAGR 18.0% $0.87 $0.84 $1.60 CAGR 17.5% $150 CAGR 8.2% $1.56 $0.76 $132.5 $0.75 $1.50 $1.45 $125 $112.8 $1.34 $100 $94.5 $0.51 $1.25 $0.50 $1.16 $0.41 $74.8 $75 $0.34 $1.08 $1.00 $
Slide 12: 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 REVISED 1Q19 CBRE-EA DATA NET ABSORPTION 36 MSF
Slide 13: Investment Activity
INVESTMENT ACTIVITY
Slide 14: Developments Under Construction
DEVELOPMENTS UNDER CONSTRUCTION 2019 First Aurora First Park @ Central Crossing III Commerce Center – Bldg. D 119,808 SF First Glacier Logistics Center 555,840 SF Estimated Completion: 4Q19 66,751 SF Estimated Completion: 3Q19 First Perry Logistics Center Estimated Completion: 2Q19 240,247 SF Estima
Slide 15: 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 – Dallas 345,280 27.5 80 18% 7.1% 3Q19 Buildings I & II First Aurora Co
Slide 16: 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 16
Slide 17: First Park 121 – Buildings I & II
FIRST PARK 121 – BUILDINGS I & II DALLAS Est. GAAP Est. % Estimated SF $/SF Investment Cash Yield Leased Completion 345,280 $27.5M $80 7.1% 18% 3Q19 (2 Buildings) 17
Slide 18: 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 18
Slide 19: 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 19
Slide 20: First Perry Logistics Center
FIRST PERRY LOGISTICS CENTER INLAND EMPIRE Est. GAAP Est. % Estimated SF $/SF Investment Cash Yield Leased Completion 240,247 $20.5M $85 5.9% 100% 3Q19 20
Slide 21: 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% 3Q19 21
Slide 22: 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 22
Slide 23: 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 23
Slide 24: First Park @ Central Crossing III
FIRST PARK @ CENTRAL CROSSING III SOUTHERN NEW JERSEY Est. GAAP Est. % Estimated SF $/SF Investment Cash Yield Leased Completion 119,808 $12.1M $101 5.8% 0% 4Q19 24
Slide 25: First Grand Parkway Commerce Ctr. I & II
FIRST GRAND PARKWAY COMMERCE CTR. I & II HOUSTON Est. GAAP Est. % Estimated SF $/SF Investment Cash Yield Leased Completion 370,660 $28.5M $77 7.7% 0% 4Q19 (2 Buildings) 25
Slide 26: First Redwood Logistics Center I & II
FIRST REDWOOD LOGISTICS CENTER I & II INLAND EMPIRE Est. GAAP Est. % Estimated SF $/SF Investment Cash Yield Leased Completion 402,287 $47.4 $118 6.0% 0% 1Q20 (2 buildings) 26
Slide 27: Developments Completed Not In-Service
DEVELOPMENTS COMPLETED NOT IN-SERVICE AS OF MARCH 31, 2019 First Joliet Logistics Center First Logistics Center @ 355,969 SF 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 29
Slide 28: Developments Completed Not In-Service
DEVELOPMENTS COMPLETED NOT IN-SERVICE AS OF MARCH 31, 2019 Estimated GAAP Estimated % Building Property Market SF Investment $/SF Cash Leased Completion ($M) Yield(1) The Ranch by First Inland 137,358 12.1 88 100% 8.8% 2Q18 Industrial – Bldg. III Empire The Ranch by First Inland 220,707 20.3 92 100%
Slide 29: 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 30: 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 30.0 50 100% 8.2% 2Q17 The Ranch by First
Slide 31: Property Acquisitions
PROPERTY ACQUISITIONS 2018/2019 6407 S 210th St First Orchard 88 35,132 SF Business Center 1402 Puyallup Street 172,654 SF 56,336 SF 28545 Livingston Ave 170,556 SF First Park @ Central Crossing II 119,922 SF First Park @ Ocean Ranch II 225,489 SF Energy Commerce Business Park II 4401 Shader Rd 334,
Slide 32: Property Acquisitions
PROPERTY ACQUISITIONS 2018/2019 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
Slide 33: 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 (≈ $2 per land foot), FR share: 49% • Partner: Diamond Realty, the US real estate arm of Mitsubishi Corporation • Speculative and build-to-suit development plus one-off land sales to users •
Slide 34: First Park @ PV 303 – Joint Venture
FIRST PARK @ PV 303 – JOINT VENTURE 309 Acres Remaining JV Land After Sales 34
Slide 35: Strategically Located Land Positions
STRATEGICALLY LOCATED LAND POSITIONS AS OF APRIL 23, 2019 Developable Site Market Acres SF First Park 94 Chicago 154.0 3,200,000 First Aurora Commerce Center Denver 93.6 1,334,000 Rockdale Nashville 101.7 1,200,000 Stockton San Francisco 57.9 1,200,000 First Park @ PV 303 Phoenix 56.3 900,000 Pennsy
Slide 36: Balance Sheet
BALANCE SHEET
Slide 37: Line of Credit/Term Loans Covenants
LINE OF CREDIT/TERM LOANS COVENANTS (DEBT + PREFERRED) TO EBITDA TOTAL LEVERAGE(1) (annualized) 6.5 45 6.2x 40.6% 6.1x 40 37.5% 6.0 5.5x 35 33.0% 5.5 30 5.0 4.9x 27.6% 4.8x 25.9% 4.7x 26.2% 25 4.5 2014 2015 2016 2017 2018 1Q19 2014 2015 2016 2017 2018 1Q19 SECURED LEVERAGE FIXED CHARGE COVERAGE 20.0
Slide 38: Strong Balance Sheet
STRONG BALANCE SHEET AS OF MARCH 31, 2019 Fixed vs. Floating Fixed 92% Floating 8% Amount Interest Weighted Debt Type ($M) % Rate Maturity (Yrs.)(1) Secured 224 17 5.1% 2.9 Unsecured 1,110 83 3.8% 6.2 Total 1,334 4.0% 5.7 (1) LOC maturity assumes exercise of one-year extension option. 38
Slide 39: Strong Balance Sheet
STRONG BALANCE SHEET AS OF MARCH 31, 2019 Maturities Secured Debt Unsecured Debt Line of Credit 600 500 400 102 (1) $M 300 549 200 260 200 100 6 59 67 82 0 10 2019 2020 2021 2022 Thereafter Average Interest 5.88% 6.90% 3.75% 3.26% 4.39% Rate % (1) LOC maturity assumes exercise of one-year extension
Slide 40: 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 40
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